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                                                                    EXHIBIT 10.9

                                 LEASE AGREEMENT

     THIS LEASE, made this 12th day of May 2000 between JOHN ARRILLAGA, Trustee
or his Successor Trustee, UTA dated 7/20/77 (JOHN ARRILLAGA SURVIVOR'S TRUST) as
amended, and RICHARD T. PEERY, Trustee, or his Successor Trustee, UTA dated
7/20/77 (RICHARD T. PEERY SEPARATE PROPERTY TRUST) as amended, hereinafter
called Landlord, and VIANT CORPORATION, a Delaware corporation, hereinafter
called Tenant.

                                   WITNESSETH:

     Landlord hereby leases to Tenant and Tenant hereby hires and takes from
Landlord those certain premises (the "Premises") outlined in red on Exhibit "A"
attached hereto and Incorporated herein by this reference thereto more
particularly described as follows:

A portion of that certain 39,703+/- (plus or minus) square foot, one-story
building located at 640 Clyde Court, Mountain View, California 94043, consisting
of approximately 19,053+/- (plus or minus) square feet of space. Said Premises
is more particularly shown within the area outlined in Red on Exhibit A attached
hereto. The entire parcel, of which the Premises is a part, is shown within the
area outlined in Green on Exhibit A attached. The Premises is leased on an
"as-is" basis, in its present condition, and in the configuration as shown in
Red on Exhibit B attached hereto.

     The word "Premises" as used throughout this lease is hereby defined to
include the nonexclusive use of landscaped areas, sidewalks and driveways in
front of or ad scent to the Premises, and the nonexclusive use of the area
directly underneath or over such sidewalks and driveways. The gross leasable
area o the building shall be measured from outside of exterior walls to outside
of exterior walls, and shall include any atriums, covered entrances or egresses
and covered building loading areas. Said letting and hiring is upon and subject
to the terms, covenants and conditions hereinafter set forth and Tenant
covenants as a material part of the consideration for this Lease to perform and
observe each and all of said terms, covenants and conditions. This Lease is made
upon the conditions of such performance and observance.

1.   USE. Tenant shall use the Premises' only in conformance with applicable
governmental laws, regulations, rules and ordinances for the purpose of general
office and storage uses necessary for Tenant to conduct Tenant's business,
provided that such uses shall be in accordance with all applicable Governmental
laws and ordinances and for no other purpose. Tenant shall not do or permit to
be done in or about the Premises nor bring or keep or permit to be brought or
kept in or about the Premises anything which is prohibited by or will in any way
increase the existing rate of (or otherwise affect) fire or any insurance
covering the Premises or any part thereof, or any of its contents, or will cause
a cancellation of any insurance covering the Premises or any part thereof, or
any of Its contents. Tenant shall not do or permit to be done anything In, on or
about the Premises which will in anyway obstruct or Interfere with the rights of
other tenants or occupants of the Premises or neighboring premises or Injure or
annoy them, or use or allow the Premises to be used for any improper, immoral,
unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit
any nuisance in, on or about the Premises. No sale by auction permitted on the
Premises. Tenant shall not place any loads upon the floors, walls, or ceiling
which endanger the structure, or place any harmful fluids or of materials in the

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drainage system of the building, or overload existing electrical or other
mechanical systems. No waste materials or refuse shall be dumped a or permitted
to remain upon any part of the Promises or outside of the building in which the
Premises are a part, except in trash containers placed inside exterior
enclosures designated by Landlord for that purpose or inside of the building
proper where designated by Landlord. No materials, supplies, equipment, finished
products or semi-finished products, raw materials or articles of any nature
shall be stored upon or permitted to remain outside the Premises. Tenant shall
not place anything or allow anything to be placed near the glass of any window,
door partition or wall which may appear unsightly from outside the Premises. No
loudspeaker or other device, system or apparatus which can be heard outside the
Premises shall be used In or at the Premises without the prior written consent
of Landlord. Tenant shall not commit or suffer to be committed any waste in or
upon the Premises. Tenant shall Indemnify, defend and hold Landlord harmless
against any loss, expense, damage, reasonable attorney's fees, or liability
arising out of failure of Tenant to comply with any applicable law. Tenant shall
comply with any covenant, condition, or restriction ("CC&R's") affecting the
Premises. The provisions of this paragraph are for the benefit of Landlord only
and shall not be construed to be for the benefit of any tenant or occupant of
the Premises.

2.   TERM*

       A.   Subject to Paragraph 53, the term of this Lease shall be for a
period of FIVE (5) years unless sooner terminated as hereinafter provided)
and subject to Paragraphs 2B and 3, shall commence on the 7th day of June,
2000 and end on the 30th day of June, 2005.

       B.   Possession of the Premises shall be deemed tendered and the term of
the Lease shall commence on June 7, 2000 or as otherwise agreed in writing.

3.   POSSESSION If Landlord, for any reason whatsoever, cannot deliver
possession of Said premises to Tenant at the commencement of the said term, as
hereinbefore specified, this Lease shall not be void or voidable; no obligation
of Tenant shall be affected thereby; nor shall Landlord a Landlord's agents be
liable to Tenant for any loss or damage resulting therefrom; but M that event
the commencement and termination dates of the Lease; and all other dates
affected thereby shall be revised to conform to the date of landlord's delivery
of possession, as specified In Paragraph 28, above. The above is, however,
subject to the provision that the period of delay of delivery of the Premises
shall rat exceed 30 days from the commencement date herein (except those delays
caused by Acts of God, strikes, war, utilities governmental bodies, weather,
unavailable materials, and delays beyond Landlord's control shall be excluded in
calculating such period) in which instance Tenant, at its option, may, by
written notice to Landlord, terminate this Lease.

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*   It is agreed in the event said Lease commences on a date other than the
    first day of the month the term of the Lease will be extended to account for
    the number of days in the partial month. The Basic Rent during the resulting
    partial month will be pro-rated (for the number of days in the partial
    month) at the Basic Rent rate scheduled for the projected commencement date
    as shown in Paragraph 39.

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4.   RENT

     A.     BASIC RENT Tenant agrees to pay to Landlord at such place as
Landlord may designate without deduction offset, prior notice, or demand, and
Landlord ague to accept as Bask Rent for the based Promises the tow sum of EIGHT
MILLION SIX HUNDRED EIGHTY THOUSAND FIVE HUNDRED FORTY SIX AND 80/100 Dollars s
($8,680,546.80) in lawful money of the United States of America, payable as
follows:

                    See Paragraph 39 for Basic Rent Schedule

     B.     TIME FOR PAYMENT. Full monthly rent is due in advance on the first
day of each calendar month. In the event that the term of this Lease commences
on a date other than the first day of a calendar month, on the date of
commencement of the term hereof Tenant shall pay to Landlord as rent for the
period from such date of commencement to the first day of the next succeeding
calendar month that proportion of the monthly rent hereunder which the number of
days between such date of commencement and the first day of the next succeeding
calendar month bears to thirty (30). In the event that the term of this Lease
for any reason ends on a date other than the last day of a calendar month, on
the first day of the last calendar month of the term hereof Tenant shall pay to
Landlord as rent for the period from said first day of said last calendar month
to and including the last day of the term hereof that proportion of the monthly
rent hereunder which the number of days between said first day of said last
calendar month and the last day of the term hereof bears to thirty (30).

     C.     LATE CHARGE. Notwithstanding any other provision of this Lease, If
Tenant is in default in the payment of rental as set forth in this Paragraph 4
when due, or any part thereof, Tenant agrees to pay Landlord, in addition to the
delinquent rental due, a late charge for each rental payment in default ten (10)
days. Said late charge shall equal ten percent (10%) of each rental payment so
in default

     D.     ADDITIONAL RENT. Beginning with the commencement date of the term of
this Lease. Tenant shall pay to Landlord or to Landlord's designated agent in
addition to the Basic Rent and as Additional Rent the following:

     (a)    All Taxes relating to the Premises as set forth in Paragraph 9, and

     (b)    All insurance premiums and deductibles relating to the Premise, as
set forth in Paragraph 12, and

     (c)    All charges, costs and expenses, which Tenant is required to pay
hereunder, together with all interest and penalties, costs expenses including
reasonable attorneys' fees and legal expenses, that may accrue thereto In the
event of Tenant's fall failure to pay such amounts, and all damages, reasonable
costs and expenses which Landlord may incur by reason of default of Tenant or
failure on Tenant's part to comply with the terms of this Lease. In the event of
nonpayment by Tenant of Additional Rent, Landlord shall have all the rights and
remedies with respect thereto as Landlord has for nonpayment of rent.

     The Additional Rent due hereunder shall be paid to Landlord or Landlord's
agent (i) within five days for taxes and insurance and within thirty days for
all other Additional Rent items after presentation of invoice from Landlord or
Landlord's agent setting forth such Additional

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Rent and/or (ii) at the option of Landlord, Tenant shall pay to Landlord
monthly, In advance, Tenant's pro rata share of an amount estimated by Landlord
to be Landlord's approximate average monthly expenditure for such Additional
Rent items, which estimated amount shall be reconciled within 120 days of the
end of each calendar year or more frequently, if Landlord elects to do so at
Landlord's sole and absolute discretion as compared to Landlord's actual
expenditure for said Additional Rent items, with Tenant paying to Landlord, upon
demand, any amount of actual expenses expended by Landlord in excess of said
estimated amount, or Landlord crediting to Tenant (providing Tenant is not in
clef cult In the performance of any of the terms, covenants and conditions of
this Lease) any amount of estimated payments made by Tenant in excess of
Landlord's actual expenditures for said Additional Rent Items.

     The respective obligations of Landlord and Tenant under this paragraph
shall survive the expiration or other termination of the term of this Lease, and
if the term hereof shall expire or shall otherwise terminate on a day other than
the last day of a calendar year, the actual Additional Rent incurred for the
calendar year in which the term hereof expires or otherwise terminates shall be
determined and settled on the basis of the statement of actual Additional Rent
for such calendar year and shall be prorated in the proportion which the number
of days in such calendar year preceding such expiration or termination bears to
365.

     E.     FIXED MANAGEMENT FEE. Beginning with the Commencement Date of the
Term of this Lease, Tenant shall pay to Landlord, in addition to the Basic Rent
and Additional Rent, a fixed monthly management fee ("Management Fee") equal to
3% of the Basic Rent due for each moth during the Lease Term.

     F.     PLACE OF PAYMENT OF RENT AND ADDITIONAL RENT. All Basic Rent
hereunder and all payments hereunder for Additional Rent shall be paid to
Landlord at the office of Landlord at Peery/Arrilaga, File 1504, Box 60000, San
Francisco, CA 94160, or to such other person or to such other place as Landlord
may from time to time designate in writing.

     G.     SECURITY DEPOSIT. Concurrently with Tenant's execution of this
Lease, Tenant shall deposit with Landlord the sum of THREE HUNDRED FOUR THOUSAND
EIGHT HUNDRED FORTY-EIGHT AND NO/100 Dollars ($304,848.00). Said sum shall be
held by Landlord as a Security Deposit for the faithful performance by Tenant of
all of the terms, covenants, and conditions of this Lease to be kept and
performed by Tenant during the term hereof. If Tenant defaults with respect to
any provision of this Lease, including, but not limited to, the provisions
relating to the payment of rent and any of the monetary sums due herewith,
Landlord may (but shall not be required to) use, apply or retain all or any part
of this Security Deposit for the payment of any other amount which Landlord may
spend by reason of Tenant's default or to compensate Landlord for any other loss
or damage which Landlord may suffer by reason of Tenant's default If any portion
of said Deposit I: so used or applied, Tenant shall, within ten (10) days after
written demand therefor, deposit cash with Landlord in the amount sufficient to
restore the Security Deposit to its original amount. Tenant's failure to do so
shall be a material breach of this Lease. Landlord shall not be required to keep
this Security Deposit separate from its general funds, and Tenant shall not be
entitled to interest on such Deposit. If Tenant fully and faithfully performs
every provision of this Lease to be performed by it, the Security Deposit or any
balance thereof shall be returned to Tenant (or at Landlord's option, to the
last assignee of Tenant's interest hereunder) at the expiration or other earlier
termination of

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the Lease term and after Tenant has vacated the Premises. In the event of
termination of Landlord's interest in this Lease, Landlord shall transfer said
Deposit to Landlord's successor in Interest whereupon Tenant agrees to release
Landlord from liability for the return of such Deposit or the accounting
therefor.

5.   ACCEPTANCE AND SURRENDER OF PREMISES By entry hereunder, Tenant accepts the
Premises as being in good and sanitary order, condition and repair and accepts
the building and Improvements included In the Premises In their present
condition and without representation or warranty by Landlord as to the condition
of such building or as to the use or occupancy which may be made thereof. Any
exceptions to the foregoing must be by written agreement executed by Landlord
and Tenant. Tenant agrees on the last day of the Lease term, or on the sooner
termination of this Lease, to surrender f Premises promptly and peaceably to
Landlord in good condition and repair (damage by Acts of God, fire, normal wear
and tear excepted), with all Interior walls painted, or cleaned so that they
appear freshly painted, and repaired and replaced, If damaged; all floors
cleaned and waxed; all carpets cleaned and shampooed; all broken, marred or
nonconforming acoustical ceiling tiles replaced; all windows washed; the
air-conditioning and heating systems serviced by a reputable and licensed
service firm and In good operating condition and repair; the plumbing and
electrical systems and lighting In good order and repair, Including replacement
of any burned out or broken light bulbs or ballasts; the lawn and shrubs in good
condition including the replacement of any dead or damaged plantings; the
sidewalk, driveways and parking areas in good order, condition and repair,
together with all alterations, additions, and improvements which may have been
made In, to, or on the Premises (except moveable trade fixtures Installed at the
expense of Tenant) except that Tenant shall ascertain from Landlord within
thirty (30) days before the end of the term of this Lease whether Landlord
desires to have the Premises or any part or parts thereof restored to their
condition and configuration as when the Premises were delivered to Tenant and N
Landlord shall so desire, then Tenant shall restore said Premises or such part
or parts thereof before the end of this Lease at Tenant's sole cost and expense.
Tenant, on or before the end of the term or sooner termination of this Lease,
shall remove all of Tenant's personal property and trade fixtures from the
Premises, and all property not so removed on or before the end of the term or
sooner termination of this Lease shall be deemed abandoned by Tenant and title
to same shall thereupon pass to Landlord without compensation to Tenant.
Landlord may, upon termination of this Lease, remove all moveable furniture and
equipment so abandoned by Tenant, at Tenant's sole cost, and repair any damage
caused by such removal at Tenant's sole cost. B the Premises be not surrendered
at the end of the term or sooner termination of this Lease, Tenant shall
indemnify Landlord against loss or liability resulting from the delay by Tenant
in so surrendering the Premises including, without limitation, any claims made
by any succeeding tenant founded on such delay. Nothing contained herein shall
be construed as an extension of the term hereof or as a consent of landlord to
any holding over by Tenant. The voluntary or other surrender of this Lease or
the Premises by Tenant or a mutual cancellation of this Lease shall not work as
a merger and, at the option of Landlord, shall either terminate all or any
existing subleases or subtenancies or operate as an assignment to Landlord of
all or any such subleases or subtenancies.

6.   ALTERATIONS AND ADDITIONS Tenant shall not make, or suffer to be made, any
alteration or addition to the Premises, or any part thereof, without the written
consent of Landlord first had and obtained by Tenant (such consent not to be
unreasonably withheld), but at

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the cost of Tenant, and any addition to, or alteration of, the Premises, except
moveable furniture and trade fixtures, shall at once become a part of the
Premises and belong to Landlord. Landlord reserves the right to approve all
contractors and mechanics proposed by Tenant to make such alterations and
additions. Tenant shall retain title to all moveable furniture and trade
fixtures placed in the Premises. All heating, lighting, electrical,
air-conditioning, floor to ceiling partitioning, drapery, carpeting, and floor
installations made by Tenant, together with all property that has become an
Integral part of the Premises, shall not be loomed trade fixtures. Tenant agrees
that It will not proceed to make such alteration or additions, without having
obtained consent from Landlord to do so, and until five (5) days from the
receipt of such consent, in order that Landlord may post appropriate notices to
avoid any liability to contractors or material suppliers for payment for
Tenant's Improvements. Tenant will at all times permit such notices to be posted
and to remain posted until the completion of work. Tenant shall, if required by
Landlord, secure at Tenant's own cost and expense, a completion and lien
Indemnity bond, satisfactory to Landlord, for such work. Tenant further
covenants and agrees that any mechanic's lien filed against the Premises for
work claimed to have been done for, or materials claimed to have n furnished to
Tenant, will be discharged by Tenant by bond or otherwise, within ten (10) days
after the filing thereof, at the coat and expense of Tenant. Any exceptions to
the foregoing must be made in writing and executed by both Landlord and Tenant.

7.   TENANT  MAINTENANCE.  Tenant shall, at its sole cost and expense keep and
maintain the Premises (including appurtenances) and every pan thereof in a high
standard of maintenance and repair, and in good and sanitary condition. Tenant's
maintenance and repair responsibilities herein referred to include, but are not
limited to janitorization, plumbing systems within the Premises (such as water
and drain lines, sinks), electrical systems within the non-common areas of the
Premises (such as outlets, lighting fixtures lamps, bulbs, tubes, ballasts),
heating and air-conditioning controls within the non-common areas of the
Premises (such as mixing boxes, thermostats, time clocks, supply and return
grills), all interior improvements within the non-common areas of the premises
including but not limited to: wall coverings. window coverings. acoustical
ceilings. vinyl tile. carpeting. partitioning, doors (both interior and
exterior, including closing mechanisms. latches. locks). and all other interior
improvements of any nature whatsoever. Tenant agrees to provide carpet shields
under all rolling chain or to otherwise be responsible for wear and tear of the
carpet caused by such rolling chairs if such wear and tear exceeds that caused
by normal foot traffic in surrounding areas. Areas of excessive wear shall be
replaced at Tenant's sole expense upon tease termination.

8.   UTILITIES.

     [DELETED]

9.   TAXES

     A.     As Additional Rent arid in accordance with Paragraph 4D of this
Lease, Tenant Small pay to Landlord, or If Landlord so directs, directly to the
Tax Collector, all Real Property Taxes relating to the Premises. In the event
the Premises leased hereunder consist of only a portion of the entire tax
parcel, Tenant shall pay to Landlord Tenant's proportionate share of such real
estate taxes allocated to the leased Premises by square footage or other
reasonable basis as calculated and determined by Landlord. If ft tax billing
pertains 100 DEG.% to the leased Premises,

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and Landlord chooses to have Tenant pay said real estate taxes directly to the
Tax Collector, then in such event ft shall be the responsibility of Tenant to
obtain the tax and assessment bills and pay, prior to delinquency, the
applicable real property taxes and assessments pertaining to the leased
Premises, and failure to receive a bill for taxes and/or assessments shall not
provide a basis for cancellation of or nonresponsibility for payment of
penalties for nonpayment or late payment by Tenant. The term "Real Property
Taxes" as used herein, shall mean (i) all taxes, assessments, levies and other
charges of any kind or nature whatsoever, general and special, foreseen and
unforeseen (including all installments of principal and interest required to pay
any general or special assessments for public improvements and any increases
resulting from reassessments caused by any change in ownership of the Premises)
now or hereafter imposed by any governmental or quasi-governmental authority or
special district having the direct or indirect power to tax or levy assessments,
which are levied or assessed against, or with respect to the value, occupancy or
use of, all or any portion of the Premises (as now constructed or as may at any
time hereafter be constructed, altered or otherwise changed) or Landlord's
interest therein; any improvements located within the Premises (regardless of
ownership); the fixtures, equipment and other property of Landlord, real or
personal, that are an integral part of and located in the Premises; or parking
areas, public utilities, or energy within the Premises; (ii) all charges, levies
or fees imposed by reason of environmental regulation or other governmental
control of the Premises; and (iii) all costs and fees (including reasonable
attorneys' fees) incurred by Landlord In reasonably contesting any Real Property
Tax and in negotiating with public authorities as to any Real Property Tax, If
at any time during the term of this Lease the taxation or assessment of the
Premises prevailing as of the commencement date of thin Lease shall be altered
so that In lieu of or In addition to any Real Property Tax described above there
shall be levied, assessed or imposed (whether by reason of a change in the
method of taxation or assessment, creation of a new tax or charge, or any other
cause) an alternate or additional tax or charge (i) on the value, use or
occupancy of the Premises or Landlord's Interest therein or (ii) on or measured
by the gross receipts, Income or rentals from the Premises, on Landlord's
business of leasing the Premises, or computed in any manner with respect to the
operation of the Premises, then any such tax or charge, however designated,
shall be included within the meaning of the term "Real Property Taxes" for
purposes of this Lease. If any Real Property Tax is based upon property a rents
unrelated to the Promises, then only that part of such Real Property Tax that is
fairly allocable to the Premises shall be Included within the meaning of the
term "Real Property Taxes". Notwithstanding the foregoing, the term "Real
Property Taxes" shall not include estate, Inheritance, gift or franchise taxes
of Landlord or the federal or state net income tax imposed oil Landlord's Income
from all sources. The term "Real Estate Taxes" shall also include supplemental
taxes related to the period of Tenant's Lease whenever levied, including any
such taxes that may be levied after the Lease Term has expired.

     B.     TAXES ON TENANT'S PROPERTY Tenant shall be liable for and shall pay
ten days before delinquency, taxes levied against any personal property or trade
fixtures placed by Tenant In or about the Premises. If any such taxes on
Tenant's personal property or trade fixtures are levied against Landlord or
Landlord's property or H the assessed value of the Premises Is Increased by the
Inclusion therein of a value placed upon such personal property or trade
fixtures of Tenant and B Landlord, after written notice to Tenant, pays the
taxes based on such increased assessment, which Landlord shall have the right to
do regardless of the validity thereof, but only under proper protest if
requested by Tenant, Tenant shall upon demand as the case may be, repay to
Landlord the taxes so levied against Landlord, or the proportion of such taxes
resulting from

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such increase in the assessment; provided that in any such event Tenant shall
halt have the right, in the name of landlord and with Landlord's full
cooperation, to bring, suit in an court of competent Jurisdiction to recover the
amount of such taxes so paid under protest, and any amount so recovered shall
belong to Tenant.

10.  LIABILITY INSURANCE Tenant, at tenant's, expense, agrees to keep in force
during the term of this Lease a policy of commercial general liability insurance
with combined single limit coverage of not less than Two Million Dollars
($2,000,000) per occurrence, for bodily injury and property damage occurring in,
on or about the Premises, including parking and landscaped areas. Such insurance
shall be primary and noncontributory as respects any Insurance carried by
Landlord. The policy or policies effecting such insurance shall name Landlord as
additional insureds and shall insure any liability of Landlord, contingent or
otherwise; as respects acts or omissions of Tenant; its agents, employees or
invitees or otherwise by any conduct or transactions of any of said persons in
or about or concerning the Premises, including any failure of Tenant to observe
or perform any of its obligations hereunder, shall be Issued by an insurance
company admitted to transact business in the State of California; and shall
provide that the Insurance effected thereby shall not be canceled, except upon
thirty (30) days' prior written notice to Landlord. A certificate of insurance
of said policy shall be delivered to Landlord. If, during the term of this
Lease, in the considered opinion of Landlord's Lender, insurance advisor, or
counsel, the amount of insurance described in this Paragraph 10 is not adequate,
Tenant agrees to increase said coverage to such reasonable amount as Landlord's
insurance advisor, or counsel shall deem adequate.

11.  TENANT'S PERSONAL PROPERTY INSURANCE AND WORKMAN'S COMPENSATION INSURANCE
Tenant shall maintain a policy or policies of fire and property damage insurance
in "art risk" form with a sprinkler leakage endorsement Insuring the personal
property, inventory, trade fixtures, and leasehold improvements within the
leased Premises for the full replacement value thereof. The proceeds from any of
such policies shall be used for the repair or replacement of such items so
insured.

     Tenant shall also maintain a policy or policies of workman's compensation
insurance and any other employee benefit Insurance sufficient to comply with all
laws.

12.  PROPERTY INSURANCE Landlord shall purchase and keep in force, and as
Additional Rent and in accordance with Paragraph 40 of this Lease, Tenant shall
pay to Landlord (or Landlord's agent if so directed by Landlord) Tenant's
proportionate share (allocated to the leased Premises by square footage or other
equitable basis as calculated and determined by Landlord) of the deductibles on
insurance claims and the cost of, policy or policies of Insurance covering loss
or damage to the Premises (excluding routine maintenance and repairs and
Incidental damage or destruction caused by accidents or vandalism for which
Tenant is responsible under Paragraph T) In the amount of the full replacement
value thereof, providing protection against those perils included within the
classification of "ell risks" Insurance and flood and/or earthquake Insurance,
If available, plus a policy of rental income Insurance In the amount of one
hundred (100x) percent of twelve (12) months Basic Rent, plus sums paid as
Additional Rent, if such Insurance cost Is increased due to Tenant's use of the
Premises, Tenant agrees to pay to Landlord the full 'cost of such Increase.
Tenant shall have no interest in nor any right to the proceeds of any Insurance
procured by Landlord for the Premises.

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     Landlord and Tenant do each hereby respectively release the other, to the
extent of Insurance coverage of the releasing party, from any liability for loss
or damage caused by fire or any of the extended coverage casualties included in
the releasing party's insurance policies, Irrespective of the cause of such fire
or casualty; provided, however, that if the Insurance policy of either releasing
party prohibits such waiver, then this waiver shall not take effect until
consent to such waiver is obtained. If such waiver is so prohibited, the insured
party affected shall promptly notify the other party thereof.

13.  INDEMNIFICATION Landlord shall not be liable to Tenant and Tenant hereby
waives all claims against landlord or any injury to or death of any person or
damage to or destruction of property in or about the Premises by or from any
cause whatsoever, Including, without limitation, gas, fire, oil, electricity
leakage of any character from the root, walls, basement or other portion of the
Premises but excluding, however, the nag pence of Landlord, its agents,
servants, employees, invitees, or contractors of which negligence Landlord has
knowledge and reasonable time to correct. Except as to injury to persons or
damage to property to the extent arising from the willful misconduct or the
negligence of Landlord, its agents, servants, employees, invitees, or
contractors, Tenant shall hold Landlord harmless from and defend Landlord
against any and all expenses, including reasonable attorneys' fees, in
connection therewith, arising out of any injury to or death of any person or
damage to or destruction of property occurring in, on or about the Premises, or
any part thereof, from any cause whatsoever.

14.  COMPLIANCE Tenant, at Its sole cost and expense, shall promptly comply with
a laws, statutes, ordinances an government rules, regulations or requirements
now or hereafter In effect; with the requirements of any board of fire
underwriters or other similar body now or hereafter constituted; and with any
direction or occupancy certificate Issued pursuant to law by any public officer;
provided, however, that no such failure shall be deemed a breach of the
provisions if Tenant, immediately upon notification, commences to remedy or
rectify said failure. The judgment of any court of competent jurisdiction or the
admission of Tenant in any action against Tenant, whether Landlord be a party
thereto or not, that Tenant has violated any such law, statute, ordinance or
governmental rule, regulation, requirement, direction or provision, shall be
conclusive of that fact as between Landlord and Tenant. Tenant shall, at its
sole, cost and expense, comply with any and all requirements pertaining to said
Premises, of any insurance organization or company, necessary for the
maintenance of reasonable fire and public liability insurance covering
requirements pertaining to said Premises.

15.  LIENS Tenant shall keep the Premises free from any Yens arising out of any
work performed, materials furnished or obligation Incurred by Tenant. In this
event that Tenant shall not, within ten (10) days following the Imposition of
such lien, cause the same to be released of record, Landlord shall have, in
addition to all other remedies provided herein and by law, the right, but no
obligation, to cause the same to be released by such means as it shall deem
proper, including payment of the claim giving rise to such lien. All sums paid
by Landlord for such purpose, and all expenses Incurred by it In connection
therewith, shall be payable to Landlord by Tenant on demand with Interest at the
prime rate of Interest as quoted by the Bank of America.

16.  ASSIGNMENT AND SUBLETTING. Tenant shall not assign, transfer, or
hypothecate the leasehold estate under this Lease, or any interest therein, and
shall not sublet the Premises or any put thereof, or any right or privilege
appurtenant thereto, or suffer any other person or entity

                                        9
<Page>

to occupy or use the Premises, or any portion thereof, without, in each case,
the prior written notice of Landlord which content will not be unreasonably
withheld. As a condition for granting this consent any assignment, transfer, or
subletting, Landlord shall require that (i) the sublease be a triple net
sublease and that the basic rent due under any such sublease be no less than the
then current market rent with annual increases at the then prevailing market
rent, (ii) that the sublease shall not provide for subtenant to have an option
to extend the term of the sublease or an option to expand the sublet space, and
(iii) Tenant to pay to Landlord, as Additional Rent, seventy-five percent (75%)
of all rents and/or additional consideration due Tenant from its assignees,
transferees, or subtenants in excess of the Rent payable to Tenant to Landlord
hereunder for the assigned, transferred and/or subleased space ("Excess Rent").
Tenant shall, by thirty (30) days written notice, advise Landlord or its intent
to assign or transfer Tenant's interest in the lease or sublet the Premises or
any portion thereof for any part of the term hereof. Within thirty (30) days
after receipt of said written notice, Landlord may, in its sole discretion,
elect to terminate this Lease as to the portion of the Premises described in
Tenant's notice on the date specified in Tenant's notice by giving written
notice of such election to terminate. If no such notice to terminate is given to
Tenant within said thirty (30) day period, Tenant may proceed to locate an
acceptable sublessee, assignee, or other transferred for presentment to Landlord
for Landlord's approval, all in accordance with the terms, covenants, and
conditions of this paragraph 16. If Tenant intends to sublet the entire Premises
and Landlord elects to terminate this Lease, this Lease shall be terminated on
the date specified in Tenant's notice. If, however, this Lease shall terminate
pursuant to the foregoing with respect to less than all the Premises, the rent,
as defined and reserved hereinabove shall be adjusted on a pro rata basis to the
number of square feet retained by Tenant, and this Lease as so amended shall
continue in full force and effect. In the event Tenant is allowed to assign,
transfer or sublet the whole or any part of the Premises, with the prior written
consent of Landlord, no assignee, transferee or subtenant shall assign or
transfer this Lease, either in whole a in part, a sublet the whole or any part
of the Premises, without also having obtained the prior written consent of
Landlord, a consent of Landlord to one assignment. transfer, hypothecation.
subletting, occupation or use by any other person shall not release Tenant from
any of Tenant's obligations hereunder or be deemed to be a consent to any
subsequent similar or dissimilar assignment. transfer, hypothecation,
subletting, occupation or use by any other person. Any such assignment,
transfer, hypothecation, subletting, occupation or use without such consent
shall be void and shall constitute a breach of this Lease by Tenant and shall,
at the option of Landlord exercised by written notice to Tenant, terminate this
Lease. The leasehold estate under this Lease shall not, nor shall any interest
therein, be assignable for any purpose by operation of law without consent of
Landlord. As a condition to its consent, Landlord quire Tenant to pay ail
expenses in connection with the assignment, and Landlord shall require Tenant's
assignee or transferee (or other assignees or transferees) to assume in writing
all of the obligations under this Lease and rot Tenant to remain liable to
Landlord under the Lease. Notwithstanding the above, in no event will Landlord
consent to a sub-sublease.

17.  SUBORDINATION AND MORTGAGES In the event Landlord's title a leasehold
interest is now or hereafter encumbered by a deed of trust; upon the interest of
Landlord in the land and buildings in which the demised Premises are located, to
secure a loan from a lender (hereinafter referred to as "Lender") to Landlord,
Tenant shall, at the request of Landlord or Lender, execute In writing an
agreement subordinating its rights under this Lease to the lien of such deed of
trust, or, it so requested, agreeing that the Den of Lenders deed of trust shall
be or remain subject and subordinate to the rights of Tenant under this Lease.
Notwithstanding any

                                       10
<Page>

such subordination, Tenant's possession under this Lease shall not be disturbed
if Tenant is not in default and so long as Tenant shall pay all rent and observe
and perform all of the provisions set forth in this Lease.

18.  ENTRY BY LANDLORD Landlord reserves; and shall at all reasonable times
after at least 24 hours notice (except in emergencies) have the right to enter
the Premises to inspect them; to perform any services to be provided by Landlord
thereunder; to make repairs or provide any services to a contiguous tenant(s);
to submit the Premises to prospective purchasers, mortgagers or tenants; to post
notices of nonresponsibility; and to after, improve or repair the Premises or
other parts of the building, all without abatement of rent, and may erect
scaffolding and other necessary structures in or through the Premises where
reasonably required by the character of the work to be performed; provided,
however that the business of Tenant shall be interfered with to the least extent
that is reasonably practical. Any entry to the Premises by Landlord for the
purposes provided for therein shall not under any circumstances be construed or
deemed to be a forcible or unlawful entry into or a detainer of the Premises or
an eviction, actual or constructive, of Tenant from the Premises or any portion
thereof.

19.  BANKRUPTCY AND DEFAULT The commencement of a bankruptcy action or
liquidation action or reorganization action or Insolvency action or an
assignment of or by Tenant for the benefit of creditors, or any similar action
undertaken by Tenant, a the insolvency of Tenant, shall, at Landlord's option,
constitute a breach of this Lease by Tenant. If the trustee or receiver
appointed to serve during a bankruptcy, liquidation, reorganization, Insolvency
or similar action elects to reject Tenant's unexpired Lease, the trustee or
receiver shall notify Landlord in writing of its election within thirty (30)
days after an order for relief In a liquidation action or within thirty (30)
days after the commencement of any action.

     Within thirty (30) days after court approval of the assumption of this
Lease, the trustee or receiver shall cure (or provide adequate assurance to the
reasonable satisfaction of Landlord that the trustee or receiver shall cure) any
and all previous defaults under the unexpired Lease and shall compensate
Landlord for all actual pecuniary loss and shall provide adequate assurance of
future performance undersold Lease to the reasonable satisfaction of Landlord.
Adequate assurance of future performance, as used herein, includes, but shall
not be limited to: (i) assurance of source and payment of rent, and other
consideration due under this Lease; (ii) assurance that the assumption or
assignment of this Lease will not breach substantially any provision, such as
radius, location, use, or exclusivity provision, in any agreement relating to
the above described Premises.

     Nothing contained in this section shall affect the existing right of
Landlord to refuse, to accept an assignment upon commencement of or in
connection with a bankruptcy, liquidation, reorganization or insolvency action
or an assignment of Tenant for the benefit of creditors or other similar act
nothing contained in this Lease shall be construed as giving or granting or
creating an equity in the demised Premises to Tenant. In no event shall the
leasehold estate under this Lease, or any interest therein, be assigned by
voluntary or involuntary bankruptcy proceeding without the prior written consent
of Landlord. In no event shall this Lease or any rights or privileges hereunder
be an asset of Tenant under any bankruptcy, insolvency or reorganization
proceedings.

                                       11
<Page>

     The failure to perform or honor any covenant, condition or representation
made under this Lease shall constitute a default hereunder by Tenant upon
expiration of the appropriate grace period hereinafter provided. Tenant shall
have a period of five (5) days from the date of written notice from Landlord
within which to cure any default in the payment of rental or adjustment thereto.
Tenant shall have a period of thirty (30) days from the date of written notice
from Landlord within which to cure any other default under this Lease. Upon an
uncured default of this Lease by Tenant, Landlord shall have the following
rights and remedies in addition to achy other rights or remedies available to
Landlord at law or in equity:

     (a)    The rights and remedies provided for by California Civil Code
Section 1951.2, including but not limited to, recovery of the worth at the time
of award of the amount by which the unpaid rent for the balance of the term
after the time of award exceeds the amount of rental loss for the same period
that Tenant proves could be reasonably avoided, as computed pursuant to
subsection (b) of said Section 1951.2. Any proof by Tenant under subparagraphs
(2) and (3) of Section 1951.2 of the California Civil Code of the amount of
rental loss that could be reasonably avoided shall be made In the following
manner. Landlord and Tenant shall each select a licensed real estate broker In
the business of renting property of the same type and use as the Premises and In
the same geographic vicinity. Such two real estate brokers shall select a third
licensed real estate broker, and the three licensed real estate brokers so
selected 'shall determine the amount of the rental loss that could be reasonably
avoided from the balance of the term of this Lease after the time of award. The
decision of the majority of said licensed real estate brokers shall be final and
binding upon the parties hereto.

     (b)    The rights and remedies provided by California Civil Code Section
which allows Landlord to continue the Lease in effect and to enforce all of its
'rights and remedies under this Lease, including the right to recover rent as it
becomes due for so long as Landlord does not terminate Tenant's right to
possession; acts of maintenance or preservation efforts to relet the Premises,
or the appointment of a receiver upon Landlord's initiative to protect its
interest under this Lease shall not constitute a termination of Tenant's right
to possession.

     (c)    The right to terminate this Lease by giving notice to Tenant in
accordance with applicable law.

     (d)    To the extent permitted by law, the right and power to enter the
Premises and remove therefrom all persons and property to store such property in
a public warehouse or elsewhere at the coat of and for the account of Tenant,
and to sell such property and apply such proceeds therefrom pursuant to
applicable California law. Landlord may from time to time sublet the Premises or
any part thereof for such term or terms (which may extend beyond the term of
this Lease) and at such rent and such other terms as Landlord in its reasonable
sole discretion may deem advisable, with the right to make alterations and
repairs to the Premises. Upon each subletting, (i) Tenant shall be immediately
liable to pay Landlord, in addition to indebtedness other than rent due
hereunder, the reasonable cost of such subletting, including, but not limited
to, reasonable attorneys' fees, and any real estate commissions actually paid
and the cost of such reasonable alterations and repairs incurred by Landlord and
the amount, if any, by which the rent hereunder for the period - of such
subletting (to the extent such period does not exceed the term hereof) exceeds
the amount to be paid as rent for the Premises for such period or (ii) at the
option of landlord, rents received from such subletting shall be applied first
to payment

                                       12
<Page>

of indebtedness other than rent due hereunder from Tenant to Landlord; second,
to the payment of any costs of such subletting and of such alterations: and
repairs; third to payment of rent due and unpaid hereunder, and the residue, if
any, shall be held by Landlord and applied in payment of future rent as the same
becomes due hereunder. If Tenant has been credited with any rent to be received
by such subletting under option (i) and such rent shall not be promptly paid to
Landlord by the subtenant(s), or it such rentals received from such subletting
under option (ii) during any month be less than that to be paid during that
month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord.
Such deficiency shall be calculated and paid monthly. No taking possession of
the Premises: by Landlord, shall be construed as an election on its part to
terminate this Lease unless a written notice of such intention be given to
Tenant. Notwithstanding any such subletting without termination, Landlord may at
any time hereafter elect to terminate this Lease for such previous breach.

     (e)    The right to have a receiver appointed for Tenant upon application
by Landlord, to take possession of the Premises and to apply any rental
collected from the Premises and to exercise all other rights and remedies
granted to landlord pursuant to subparagraph (d) above.

20.  ABANDONMENT. Tenant shall not vacate or abandon the Premises at any time
during the term of this Lease, and if Tenant shall abandon, vacate or surrender
said Premises, or be dispossessed by the process of law, or otherwise, any
personal property belonging to Tenant and left on the Premises shall be deemed
to be abandoned, at the option of Landlord, except such property as may be
mortgaged to Landlord.

21.  DESTRUCTION. In the event the Premises are destroyed in whole or in part
from any cause, except for routine maintenance and repairs and incidental damage
and destruction caused from vandalism and accidents for which Tenant is
responsible under Paragraph Landlord may, at its option:

     (a)    Rebuild or restore the Premises to their condition prior to the
damage or destruction, or

     (b)    TERMINATE THIS LEASE. (providing that the Premises is damaged to the
extent of 33 1/3% of the replacement cost). If Landlord does not give Tenant
notice in writing within thirty (30) days from the destruction of the Premises
of its election to either rebuild and restore them, or to terminate this Lease,
Landlord shall be deemed to have elected to rebuild or restore them, in which
event Landlord agrees, at its expense, except for any deductible, which is the
responsibility of Tenant, promptly to rebuild or restore the Premises to their
condition prior to the damage or destruction Tenant shall be entitled to a
reduction in rent from the date of such damage or destruction, provided Tenant
is not using any portion of such damaged area, while such repair is being made
in a proportion that the area of the Premises rendered untenable a such damage
bears to the total area of the Premises. If Landlord does not complete the
rebuilding or restoration within one hundred eighty (180) days following the
date of destruction (such period of time to be extended for delays caused by the
fault or neglect of Tenant or because of Acts of God, acts of public agencies,
labor disputes, strikes, fires, freight embargos, rainy or stormy weather,
inability to obtain materials, supplies or fuels, acts of contractors or
subcontractors, or delay of the contractors or subcontractors due to such causes
or other contingencies beyond the control of Landlord), then Tenant shall have
the right to terminate this Lease by giving fifteen

                                       13
<Page>

(15) days prior written notice to Landlord. Notwithstanding anything herein to
the contrary, Landlord's obligation to rebuild or restore shall be limited to
the building and interior improvements constructed by Landlord as they existed
as of the commencement date of the Lease and shall not include restoration of
Tenant's trade fixtures, equipment, merchandise, or any improvements,
alterations or additions made by Tenant to the Premises, which Tenant shall
forthwith replace or fully repair at Tenant's sole cost and expense provided
this Lease is not cancelled according to the provisions above.

     Unless this Lease is terminated pursuant to the foregoing provisions, this
Lease shall remain in full force and effect. Tenant hereby expressly waives the
provisions of Section 1932, Subdivision 2, in Section 1933, Subdivision 4 of the
California Civil Code.

     In the event that the building in which the Premises are situated is
damaged or destroyed to the extent of not less than 33,hx of the replacement
cost thereof, Landlord may elect to terminate this tease, whether the Premises
be injured or not, notwithstanding anything to the contrary herein, Landlord may
terminate this Lease in the event of an uninsured event, or if insurance
proceeds are insufficient to cover one hundred percent of the rebuilding costs
net of the deductible.

22.  EMINENT DOMAIN If all or any part of the Premises shall be taken by any
public or quasi-public authority under the power of eminent domain or conveyance
in lieu thereof, this Lease shall terminate as to any portion of the Premises so
taken or conveyed on the date when title vests in the condemnor, and Landlord
shall be entitled to any arid all payment, income, rent, award, or any interest
therein whatsoever which may be paid or made in connection with such taking or
conveyance, and Tenant shall have no claim against Landlord or otherwise for the
value of any unexpired term of this Lease. Notwithstanding the foregoing
paragraph, any compensation specifically awarded Tenant for loss of business,
Tenant's personal property, moving cost or loss of goodwill, shall be and remain
the property of Tenant.

     If any action or proceeding is commenced for such taking of the Premises or
any part thereof, or if Landlord is advised in writing by any entity or body
having the right or power of condemnation of its intention to condemn the
premises or any portion thereof, than Landlord shall have the right to terminate
this Lease by giving Tenant written notice thereof within sixty (60) days of the
date of receipt of said written advice, or commencement of said action or
proceeding, or taking conveyance, which termination shall take place as of the
first to occur of the last day of the calendar month next following the month in
which such notice is given or the date on which title to the Premises shall vest
in the condemnor.

     In the event of such a partial taking or conveyance of the Premises, if the
portion of the Premises taken or conveyed is so substantial that the Tenant can
no longer reasonably conduct its business, Tenant shall have the privilege of
terminating this Lease within sixty (60) days from the date of such taking or
conveyance, upon written notice to Landlord of its intention so to do, and upon
giving of such notice this Lease shall terminate on the last day of the calendar
month next following the month in which such notice is given, upon payment by
Tenant of the rent from the date of such taking or conveyance to the date of
termination. '

                                       14
<Page>

     If a portion of the Premises be taken by condemnation or conveyance in lieu
thereof and neither Landlord nor Tenant shall terminate this Lease as provided
herein, this Lease shall continue in full force and effect as to the part of the
Premises not so taken or conveyed, and the rent herein shall be apportioned as
of the date of such taking or conveyance so that thereafter the rent to be paid
by Tenant shall be in the ratio that the area of the portion of the Premises not
so taken or conveyed bears to the total area of the Premises prior to such
taking.

23.  SALE OR CONVEYANCE BY LANDLORD In the event of a sale or conveyance of the
Premises or any interest therein, by any owner of the reversion than
constituting Landlord, the transferor shall thereby be released from any further
liability upon any of the terms, covenants or conditions (express or implied)
herein contained in favor of Tenant, and in such event, insofar as such transfer
is concerned, Tenant agrees to look solely to the responsibility of the
successor in interest of such transferor in and to the Premises and this Lease.
This Lease shall not be affected by any such sale or conveyance, and Tenant
agrees to attorn to the successor in interest of such transferor.

24.  ATTORNMENT TO LENDER OR THIRD PARTY In the event the interest of Landlord
in the land and buildings in which the leased Premises are located (whether such
interest of Landlord is a fee title interest or a leasehold interest) is
encumbered by dead of trust, and such interest is acquired by the lender or any
third party through judicial foreclosure or by exercise of a power of sale at
private trustee's foreclosure sale, Tenant hereby agrees to attorn to the
purchaser at any such foreclosure sale and to recognize such purchaser as the
Landlord under this .Lease. In the event the lion of the deed of trust securing
the loan from a tender to Landlord is prior and paramount to the Lease, this
Lease shall nonetheless continue in full force and effect for the remainder of
the unexpired term hereof, at the same rental herein reserved and upon all the
other terms, conditions and covenants herein contained.

25.  HOLDING OVER Any holding over by Tenant after expiration or other
termination of the term of this Lasso with the written consent of Landlord
delivered to Tenant shall not constitute a renewal or extension of the Lease or
give Tenant any rights in or to the leased Premises except as expressly provided
in this Lease. Any holding over after the expiration or other termination of the
term of this Lease, with the consent of landlord, shall be construed to be a
tenancy from month to month, on the same terms and conditions herein specified
insofar as applicable except that the monthly Basic Rent shall be increased to
an amount equal to one hundred fifty (150%) percent of the monthly Basic Rent
required during the last month of the Lease term.

26.  CERTIFICATE OF ESTOPPEL Tenant shall at any time upon not less than ten
(10) days prior written notice: Landlord execute, acknowledge and deliver to
Landlord a statement in writing (i) certifying that this Lease is unmodified and
in full force and effect (or, if modified, stating the nature of such
modification and certifying that this Lease, as to modified, is in full force
and effect) and the date to which the rent and other charges are paid in
advance, if any, and (ii) acknowledging that there are not, to Tenant's
knowledge, any uncured defaults on the part of Landlord hereunder, or specifying
such defaults, if any, are claimed. Any such statement may be conclusively
relied upon by any prospective purchaser or encumbrancer of the Premises.
Tenant's failure to deliver such statement within such time shall be conclusive
upon Tenant that this Lease is in full force and effect, without modification
except as may be represented by

                                       15
<Page>

Landlord: that there are no uncured defaults in Landlords performance, and that
not more than one month's rent has been paid in advance.

27.  CONSTRUCTION CHANGES It is understood that the description of the Premises
and the location of ductwork, plumbing and other facilities therein are subject
to such minor changes as Landlord or Landlord's architect determines to be
desirable in the course of construction of the Premises, and no such changes
shall affect this Lease or entitle Tenant to any reduction of rent hereunder or
result in any liability of Landlord to Tenant. Landlord does not guarantee the
accuracy of any drawings supplied to Tenant and verification of the accuracy of
such drawings rests with Tenant.

28.  RIGHT OF LANDLORD TO PERFORM All terms, covenants and conditions of this
Lease to be performed or observed by Tenant at Tenant's sole cost and expense
and without any reduction of rent. If Tenant shall fail to pay any sum of money,
or other rent, required or observed by Tenant at Tenant's sole cost and expense
and without any reduction of rent. If Tenant shall fail to pay any sum of money,
or other rent, required to be paid by it hereunder and such failure shall
continue for five (5) days after written notice by Landlord, or shall fail to
perform any other term or covenant hereunder on its part to be performed, and
such failure shall continue for thirty (30) days after written notice thereof by
Landlord, Landlord, without waiving or releasing Tenant from any obligation of
Tenant hereunder, may, but shall not be obliged to, make any such payment or
perform any such other term or covenant on Tenants part to be performed. All
sums so paid by Landlord and all necessary costs of such performance by Landlord
together with interest thereon at the rate of the prime rate of interest per
annum as quoted by the Bank of America from the date of such payment on
performance by Landlord, shall be paid (and Tenant covenants to make such
payment) to Landlord on demand by Landlord, and Landlord shall have (in addition
to any other right or remedy of Landlord) the same rights and remedies in the
event of nonpayment by Tenant as in the case of failure by Tenant in the payment
of rent hereunder.

29.  ATTORNEYS' FEES

     A.     In the event that either Landlord or Tenant should bring suit for
the possession of the Premises, for the recovery of any sum due under this
Lease, or because of the breach of any provision of this Lease, or for any other
relief against the other party hereunder, then all costs and expenses, including
reasonable attorneys' fees incurred by the prevailing party therein shall be
paid by the other party, which obligation on the part of the other party shall
be deemed to have accrued on the date of the commencement of such action and
shall be enforceable whether or not the action is prosecuted to judgment.

     B.     Should Landlord be named as a defendant in any suit brought against
Tenant in connection with or arising out of Tenant's occupancy hereunder. Tenant
shall pay to Landlord its costs and expenses incurred in such sun, including a
reasonable attorney's fee.

30.  WAIVER The waiver by either party of the other party's failure to perform
or observe any term, covenant or condition herein contained to be performed or
observed by such waiving party shall not be deemed to be a waiver of such term,
covenant or

                                       16
<Page>

condition a of any subsequent failure of the party failing to perform or observe
the same or any other such term, covenant or condition therein contained, and no
custom or practice which may develop between the parties hereto during the term
hereof shall be deemed a waiver of, or in any way affect, the right of either
party to insist upon performance and observance by the other party in strict
accordance with the terms hereof.

31.  NOTICES All notices, demands, requests, advices or designations which maybe
or are required to be given by either party to the other hereunder shall be in
writing. All notices, demands, requests, advices or designations by Landlord to
Tenant shall be sufficiently given, made or delivered if sent by United Stated
certified or registered mail, postage prepaid, addressed to Tenant at Viant
Corporation, Attn: Legal Department, Lincoln Plaza, 9 South Street, Boston, MA
02111. All notices, demands, requests, advices or designations by Tenant to
Landlord shall be sent by United States certified or registered mail, postage
prepaid, addressed to Landlord at its offices at Peery/Arrillaga, 2560 Mission
College Blvd., Suite 101, Santa Clara. CA 95054. Each notice, request, demand,
advice or designation referred to in this paragraph shall be deemed received on
the date of the personal service mailing thereof in the manner herein provided,
as the case may be.

32.  EXAMINATION OF LEASE Submission of this instrument for examination or
signature by Tenant does not constitute a reservation of or option for a lease,
and this instrument is not effective as a lease or otherwise until its execution
and delivery by both Landlord and Tenant.

33.  DEFAULT BY LANDLORD Landlord shall not be in default unless Landlord fails
to perform obligations required of Landlord within a reasonable time, but in no
event earner than (30) days after written notice by Tenant to Landlord and to
the holder of any first mortgage or deed of trust covering the Premises whose
name and address shall have heretofore been furnished to Tenant in writing,
specifying wherein. Landlord has failed to perform such obligations; provided,
however, that if the nature of Landlord's obligations is such that more than
thirty (30) days are required for, performance, then Landlord shall not be in
default if Landlord commences performance within such thirty (30) day period and
thereafter diligently prosecutes the awe to completion.

34.  CORPORATE AUTHORITY If Tenant is a corporation (or, a partnership), each
individual executing this Lease on behalf of said corporation (or partnership)
represents and warrants that he is duly authorized to execute and deliver this
Lease on behalf of said corporation (or partnership) in accordance with the
by-laws of said corporation (or partnership in accordance with the partnership
agreement) and that this Lease is binding upon said corporation (or partnership)
in accordance with its terms. If Tenant is a corporation, Tenant shall, within
thirty (30) days after execution of this Lease, deliver to Landlord a certified
copy of the resolution of the Board of Directors of said corporation authorizing
or ratifying the execution of this Lease.

35.  [DELETED]

36.  LIMITATION OF LIABILITY In consideration of the benefits accruing
hereunder. Tenant and all successors and assigns covenant and agree that, in the
event of any actual or alleged failure, breach or default hereunder by Landlord:

                                       17
<Page>

     (a)    the sole and exclusive remedy shall be against i Landlord's interest
in the Premises leased herein;

     (b)    no partner of Landlord shall be sued or named as a party in any suit
or action (except as may be necessary to secure jurisdiction of the
partnership);

     (c)    no service of process shall be made against any partner of Landlord
(except as may be necessary to secure jurisdiction of the partnership);

     (d)    no partner of Landlord shall be required to answer or otherwise
plead to any service of process;

     (e)    no judgment will be taken against any partner of Landlord;

     (f)    any judgment taken against any partner of Landlord may be vacated
and set aside at any time without hearing;

     (g)    no writ of execution will ever by levied against the assets of any
partner of Landlord;

     (h)    these covenants and agreements are enforceable both by Landlord and
also by any partner of Landlord.

     Tenant agrees that each of the foregoing covenants and agreements shall be
applicable to any covenant or agreement either expressly contained in this Lease
or imposed by statute or at common law.

37.  SIGNS No sign, placard, picture, advertisement, name or notice shall be
inscribed, displayed or printed or affixed on or to any part of the outside of
the Premises or any exterior windows of the Premises without the written consent
of Landlord first had and obtained and Landlord shall have the right to remove
any such sign, placard, picture, advertisement, name or notice without notice to
and at the expense of Tenant. If Tenant is allowed to print or aft or in any way
place a sign in, on, or about the Premises, upon expiration or other sooner
termination of this Lease. Tenant at Tenant's sole cost and expense shall both
remove such sign and repair all damage in such a manner as to restore all
aspects of the appearance of the Premises to the condition prior to the
placement of said sign.

     All approved signs or lettering on outside doors shall be printed, painted,
affixed or inscribed at the expense of Tenant by a person approved of by
Landlord.

     Tenant shall not place anything or allow anything to be placed near the
glass of any window, door partition or wall which may appear unsightly from
outside the Premises.

38   MISCELLANEOUS AND GENERAL PROVISIONS

     A.     USE OF BUILDING NAME. Tenant shall not, without the written consent
of Landlord, use the name of the building for any purpose other than as the
address of the business conducted by Tenant in the Premises.

                                       18
<Page>

     B.     CHOICE OF LAW; SEVERABILITY. This Lease shall in all respects be
governed by and construed in accordance with the laws of the State of
California. If any provision of this Lease shall be invalid, unenforceable or
ineffective for any reason whatsoever, all other provisions hereof shall be and
remain in full force and effect.

     C.     DEFINITION OF TERMS. The term "Premises" includes the space leased
hereby and any improvements now or hereafter installed therein or attached
thereto. The term "Landlord" or any pronoun used in place thereof includes the
plural as well as the singular and the successors and assigns of Landlord. The
term "Tenant" or any pronoun used in place thereof includes the plural as well
as the singular and individuals, firms, associations, partnerships and
corporations, and their and each of their respective heirs, executors,
administrators, successors and permitted assigns, according to the context
hereof, and the provisions of this Lease shall inure to the benefit of and bind
such heirs, executors, administrators, successors and permitted assigns.

     The term "person" includes the plural as well as the singular and
individuals, firms, associations, partnerships and corporations. Words used in
any gender include other genders. It there be more than one Tenant the
obligations of Tenant hereunder are joint and several. The paragraph headings of
this Lease are for convenience of reference only and shall have no effect upon
the construction or interpretation of any provision hereof.

     D.     TIME OF ESSENCE. Time is of the essence of this Lease and of each
and all of its provisions.

     E.     QUITCLAIM. At the expiration or earlier termination of this Lease;
Tenant shall execute, acknowledge and deliver to Landlord, within ten (10) days
after written demand from Landlord to Tenant, any quitclaim deed or other
document required by any reputable title company, licensed to operate in the
State of California, to remove the cloud or encumbrance created by this Lease
from the real property of which Tenant's Premises are a part.

     F.     INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS. This instrument along
with any exhibits and attachments hereto constitutes the entire agreement
between Landlord and Tenant relative to the Premises and this agreement and the
exhibits and attachments may be altered, amended or revoked only by an
instrument in writing signed by both Landlord and Tenant. Landlord and Tenant
agree hereby that all prior or contemporaneous oral agreements between and among
themselves and their agents or representatives relative to the leasing of the
Premises are merged in or revoked by this agreement.

     G.     RECORDING. Neither Landlord nor Tenant shall record this Lease or a
short form memorandum hereof without the consent of the other.

     H.     AMENDMENTS FOR FINANCING. Tenant further agrees to execute any
amendments required by a lender to enable Landlord to obtain financing, so long
as Tenant's rights hereunder are not substantially affected.,,

     I.     ADDITIONAL PARAGRAPHS. Paragraphs 39 through 53 are added hereto and
are included as a part of this lease.

                                       19
<Page>

     J.     CLAUSES, PLATS AND RIDERS. Clauses, plats and riders, if any, signed
by Landlord and Tenant and endorsed on or affixed to this Lease area part
hereof.

     K.     DIMINUTION OF LIGHT AIR OR VIEW. Tenant covenants and agrees that no
diminution or shutting off of light, air or view by any structure which may be
hereafter erected (whether or not by Landlord) shall in any way affect his
Lease, entitle Tenant to any reduction of rent hereunder or result in any
liability of Landlord to Tenant.

     IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this
Lease as of the day and year last written below.

LANDLORD:                                 TENANT:
JOHN ARRILLAGA SURVIVOR'S TRUST           VIANT CORPORATION, a Delaware
                                          corporation

By:   /s/ John Arrillaga                  By:    /s/ Dwayne Nesmith
      --------------------------------           -------------------------------
      John Arrillaga, Trustee                    Dwayne Nesmith
Date: June 6, 2000                        Title: CFO
      --------------------------------           -------------------------------

RICHARD T. PEERY SEPARATE
PROPERTY TRUST

                                          Type or Print Name   Dwayne Nesmith
                                                             -------------------
By:   /s/ Richard T. Peery
      --------------------------------
      Richard T. Peery, Trustee
Date: June 6, 2000                        Date: June 2, 2000
      --------------------------------          --------------------------------

                                       20
<Page>

Paragraphs 39 through 53 to Lease Agreement dated May 12, 2000, By and Between
the John Arrillaga Survivor's Trust and the Richard T. Peery Separate Property
Trust, as Landlord, and VIANT CORPORATION, A DELAWARE CORPORATION, as Tenant for
19,053+/- (plus or minus) Square Feet of Space Located at 640 Clyde Court,
Mountain View, California.

39.  BASIC RENT. Subject to Paragraph 53 below, and in accordance with Paragraph
4A herein, the total aggregate sum of EIGHT MILLION SIX HUNDRED EIGHTY THOUSAND
FIVE HUNDRED FORTY SIX AND 80/100 DOLLARS ($8,680,546.80), shall be payable as
follows:

On June 7, 2000, the sum of ONE HUNDRED SIX THOUSAND SIX HUNDRED NINETY SIX AND
80/100 DOLLARS ($106,696.80) shall be due, representing the prorated Basic Rent
for the period of June 7, 2000 through June 30, 2000.

On July 1, 2000, the sum of ONE HUNDRED THIRTY THREE THOUSAND THREE HUNDRED
SEVENTY ONE AND NO/100 DOLLARS ($133,371.00) shall be due, and a like sum due on
the first day of each month thereafter, through and including June 1, 2001.

On July 1, 2001, the sum of ONE HUNDRED THIRTY EIGHT THOUSAND ONE HUNDRED THIRTY
FOUR AND 25/100 DOLLARS ($138,134.25) shall be due, and a like sum due on the
first day of each month thereafter, through and including June 1, 2002.

On July 1, 2002, the sum of ONE HUNDRED FORTY TWO THOUSAND EIGHT HUNDRED NINETY
SEVEN AND 50/100 DOLLARS ($142,897.50) shall be due, and a like sum due on the
first day of each month thereafter, through and including June 1, 2003.

On July 1, 2003, the sum of ONE HUNDRED FORTY SEVEN THOUSAND SIX HUNDRED SIXTY
AND 75/100 DOLLARS ($147,660.75) shall be due, and a like sum due on the first
day of each month thereafter, through and including June 1, 2004.

In July 1, 2004, the sum of ONE HUNDRED FIFTY TWO THOUSAND FOUR HUNDRED TWENTY
FOUR AND NO/100 DOLLARS ($152,424.00) shall be due, and alike sum due on the
first day of each month thereafter, through and including June 1, 2005; or until
the entire aggregate sum of EIGHT MILLION SIX HUNDRED EIGHTY THOUSAND FIVE
HUNDRED FORTY SIX AND 80/100 DOLLARS ($8,680,546.80) has been paid.

40.  "AS-IS" BASIS. Subject only to Landlord having completed, at Landlord's
sole cost and expense, the roof, HVAC and plumbing repairs referenced in the
quotes from Landlord's contractors as set forth on EXHIBIT C-1 (as relates to
roof repairs), EXHIBIT C-2 (as relates to HVAC repairs) and EXHIBIT C-3 (as
relates to plumbing repairs), it is hereby agreed that the Premises leased
hereunder is leased strictly on an "as-is" basis and in its present condition,
and in the configuration as shown on EXHIBIT B attached hereto, and by reference
made a part hereof. It is specifically agreed between the parties that Landlord
shall not be required to make, nor be responsible for any cost, in connection
with any repair, restoration, and/or improvement to the Premises in order for
this Lease to commence, or thereafter, throughout the Term of this Lease.
Notwithstanding anything to the contrary within this Lease, Landlord makes no
warranty or representation of any kind or nature whatsoever as to the condition
or repair of the Premises, nor as to the use or occupancy which may be made
thereof.

                                       21
<Page>

41. RULES AND REGULATIONS AND COMMON AREA. Subject to the terms and conditions
of this Lease and such Rules and Regulations as Landlord may from time to time
prescribe, Tenant and Tenant's employees, invitees and customers shall, in
common with other occupants of the Parcel/Building in which the premises are
located, and their respective employees, invitees and customers, and others
entitled to the use thereof, have the non-exclusive right to use the access
roads, parking areas, and facilities provided and designated by Landlord for the
general use and convenience of the occupants of the Parcel/Building in which the
Premises are located, which areas and facilities are referred to herein as
"Common Area." This right shall terminate upon the termination of this Lease.
Landlord reserves the right from time to time to make changes in the shape,
size, location, amount and extent of Common Area. Landlord further reserves the
right to promulgate such reasonable rules and regulations relating to the use of
the Common Area, and any part or parts thereof, as Landlord may deem appropriate
for the best interests of the occupants of the Parcel/Building. Such Rules and
Regulations may be amended by Landlord from time to time, with or without
advance notice, and all amendments shall be effective upon delivery of a copy to
Tenant. Landlord responsible to Tenant for the non-performance by any other
tenant or occupant of the Parcel Building of any of said Rules and Regulations.

Landlord shall operate, manage and maintain the Common Area. The manner in which
the Common Area shall be maintained and the expenditures for such maintenance
shall be at the discretion of Landlord.

42.  EXPENSES OF OPERATION MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE
PARCEL AND BUILDING 1N WHICH THE PREMISES ARE LOCATED. As Additional Rent and in
accordance with Paragraph 4D of this Lease, Tenant shall pay to Landlord
Tenant's proportionate share (calculated on a square footage or other equitable
basis as calculated by landlord) of all expenses of operation, management,
maintenance and repair of the Common Areas of the Parcel including, but not
limited to, license, permit, and inspection fees; security; utility charges
associated with exterior landscaping and lighting (including water and sewer
charges); all charges incurred in the maintenance and replacement of landscaped
areas, lakes, parking lots and paved areas (including repairs, replacement,
resealing and restriping), sidewalks, driveways, maintenance, repair and
replacement of all fixtures and electrical, mechanical and plumbing systems;
supplies, materials, equipment and tools; the cost of capital expenditures which
have the effect of reducing operating expenses, provided, however, that in the
event Landlord makes such capital improvements, Landlord may amortize its
investment in said improvements (together with interest at the rate of fifteen
(15%) percent per annum on the unamortized balance) as an operating expense in
accordance with standard accounting practices, provided, that such amortization
is not at a rate greater than the anticipated savings in the operating expenses.

As Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant
shall pay its proportionate share (calculated on a square footage or other
equitable basis as calculated by Landlord) of the cost of operation (including
common utilities), management, maintenance, and repair of the building
(including structural and common areas such as lobbies, restrooms, janitor's
closets, hallways, elevators, mechanical and telephone rooms, stairwells,
entrances, spaces above the ceilings and janitorization of said common areas) in
which the Premises are located. The maintenance items herein referred to
include, but are not limited to, all windows,

                                       22
<Page>

window frames, plate glass, glazing, truck doors, main plumbing systems of the
building (such as water drain lines, sinks, toilets, faucets, drains, showers
and water fountains), main electrical systems (such as panels and conduits),
heating and air-conditioning systems (such as compressors, fans, air handlers,
ducts, boilers, heaters), structural elements and exterior surfaces of the
building; store fronts, roof, downspouts, building common area interiors (such
as wall coverings, window coverings, floor coverings and partitioning),
ceilings, building exterior doors, skylights (if any), automatic fire
extinguishing systems, and elevators (if any); license, permit and inspection
fees; security, supplies, materials, equipment and tools; the cost of capital
expenditures which have the effect of reducing operating expenses, provided,
however, that in the event Landlord makes such capital improvements, Landlord
may amortize its investment in said improvements (together with interest at the
rate of fifteen (15%) percent per annum on the unamortized balance) as an
operating expense in accordance with standard accounting practices, provided,
that such amortization is not at a rate greater than the anticipated savings in
the operating expenses. Tenant hereby waives all rights hereunder, and benefits
of, subsection 1 of Section 1932 and Sections 1941 and 1942 of the California
Civil Code and under any similar law, statute or ordinance now or hereafter in
effect.

"Additional Rent" as used herein shall not include Landlord's debt repayments;
interest on charges, expenses directly or indirectly incurred by Landlord for
the benefit of any other tenant; cost for the installation of partitioning or
any other tenant improvements; cost of attracting tenants; depreciation;
interest; or executive salaries.

43.  UTILITIES OF THE BUILDING IN WHICH THE PREMISES ARE LOCATED. As Additional
Rent and in accordance with Paragraph 4D of this Lease Tenant shall pay its
proportionate share (calculated on a square footage or other equitable basis as
calculated by Landlord) of the cost of all utility charges such as water, gas,
electricity, (telephone, telex and other electronic communications service, if
applicable) sewer service, waste pick-up and any other utilities, materials or
services furnished directly to the building in which the Premises are located,
including, without limitation, any temporary or permanent utility surcharge or
other exactions whether or not hereinafter imposed.

Landlord shall not be liable for and Tenant shall not be entitled to any
abatement or reduction of rent by reason of any interruption or failure of
utility services to the Premises when such interruption or failure is caused by
accident, breakage, repair, strikes, lockouts, or other labor disturbances or
labor disputes of any nature, or by any other cause, similar or dissimilar,
beyond the reasonable control of Landlord.

Provided that Tenant is not in default in the performance or observance of an
the t , coven is or conditions of this Lease to be performed or observed by it,
Landlord shall furnish to the Premises between the hours of 8:00 a.m. and 6:00
p.m., Mondays through Fridays (holidays excepted) and subject to the rules and
regulations of the Common Area hereinbefore referred to, reasonable quantities
of water, gas and electricity suitable for the intended use of the Premises and
heat and air-conditioning required in Landlord's judgment for the comfortable
use and occupation of the Premises for such purposes. Tenant agrees that at all
times it will cooperate fully with Landlord and abide by all regulations and
requirements that Landlord may prescribe for the proper functioning and
protection of the building heating, ventilating and air-conditioning systems.
Whenever heat generating machines, equipment, or any other devices (including
exhaust fans)

                                       23
<Page>

are used in the Premises by Tenant which affect the temperature or otherwise
maintained by the air-conditioning system, Landlord shall have the right to
install supplementary air-conditioning units in the Premises and the cost
thereof, including the cost of installation and the cost of operation and
maintenance thereof, shall be paid by Tenant to Landlord upon demand by
Landlord. Tenant will not, without the written consent of Landlord, use any
apparatus or device in the Premises (including, without limitation), electronic
data processing machines or machines using current in excess of 110 Volts which
will in any way increase the amount of electricity, gas, water or
air-conditioning usually furnished or supplied to premises being used as general
office space, or connect with electric current (except through existing
electrical outlets in the Premises), or with gas or water pipes any apparatus or
device for the purposes of using electric current, gas, or water. If Tenant
shall require water, gas, or electric current in excess of that usually
furnished or supplied to premises being used as general office space, Tenant
shall first obtain the written consent of Landlord, which consent shall not be
unreasonably withheld and Landlord may cause an electric current, gas or water
meter to be installed in the Premises in order to measure the amount of electric
current, gas or water consumed for any such excess use. The cost of any such
meter and of the installation, maintenance and repair thereof, all charges for
such excess water, gas and electric current consumed (as shown by such meters
and at the rates then charged by the furnishing public utility); and any
additional expense incurred by Landlord in keeping account of electric current,
gas, or water so consumed shall be paid by Tenant, and Tenant agrees to pay
Landlord therefor promptly upon demand by Landlord.

44.  PARKING. Tenant shall have the right to the nonexclusive use of eighty one
(81) parking spaces in the common parking area of the building. Tenant agrees
that Tenant, Tenant's employees, agents, representatives, and/or invitees shall
not use parking spaces in excess of said 81 parking spaces allocated to Tenant
hereunder. Landlord shall have the right, at Landlord's sole discretion, to
specifically designate the location of Tenant's parking spaces within the common
parking area of the building in the event of a dispute among the tenants
occupying the building referred to herein, in which event Tenant agrees that
Tenant, Tenant's employees, agents, representatives and/or invitees shall not
use any parking spaces other than those parking spaces specifically designated
by Landlord for Tenant's use. Said parking spaces, if specifically designated by
Landlord to Tenant, may be relocated by Landlord at any time, and from time to
time. Landlord reserves the right, at Landlord's sole discretion, to rescind any
specific designation of parking spaces, thereby returning Tenant's parking
spaces to the common parking area. Landlord shall give Tenant written notice of
any change in Tenant's parking spaces. Tenant shall not, at any tithe, park, or
permit to be parked, any trucks or vehicles adjacent to the loading area so as
to interfere in any way with the use of such areas, nor shall Tenant, at any
time, park or permit the parking of Tenant's trucks and other vehicles or the
trucks and vehicles of Tenant's suppliers or others, in any portion of the
common areas not designated by Landlord for such use by Tenant. Tenant shall not
park nor permit to be parked, any inoperative vehicles or equipment on any
portion of the common parking area or other common areas of the building. Tenant
agrees to assume responsibility for compliance by its employees with the parking
provision contained herein. If Tenant or its employees park in other than
designated parking areas, then Landlord may charge Tenant, as an additional
charge, and Tenant agrees to pay Ten Dollars ($10.00) per day for each day or
partial day each such vehicle is parking in any area other than that designated.
Tenant hereby authorizes Landlord, at Tenant's sole expense, to tow away from
the building any vehicle belonging to Tenant or Tenant's employees parked in

                                       24
<Page>

violation of these provisions, or to attach violation stickers or notices to
such vehicles. Tenant shall use the parking area for vehicle parking only and
shall not use the parking areas for storage.

45.  ASSESSMENT CREDITS. The demised property herein may be subject to a special
assessment levied by the City of Mountain View as part of an Improvement
District. As a part of said special assessment proceedings (if any), additional
bonds were or may be sold and assessments were or may be levied to provide for
construction contingencies and reserve funds. Interest shall be earned on such
funds created for contingencies and on reserve funds which will be credited for
the benefit of said assessment district. To the extent surpluses are created in
said district through unused contingency funds, interest earnings or reserve
funds, such surpluses shall be deemed the prop Notwithstanding that such
surpluses may be credited on assessments otherwise against the Lease Premises,
Tenant shall pay to Landlord, as additional rent if, and at the time any such
credit surpluses, an amount equal to all such surpluses so credited. For
example: if (i) the property is subject to an annual assessment of $1,000.00,
and (ii) a surplus of $200.00 is credited towards the current year's assessment
which reduces the assessment amount shown on the property tax bill from
$1,000.00 to $800.00, Tenant shall, upon receipt of notice from Landlord, pay to
Landlord said $200.00 credit as Additional Rent.

46.  ASSIGNMENT AND SUBLETTING (CONTINUED).

     A.     Notwithstanding the foregoing, Landlord and Tenant agree that it
shall not be unreasonable for Landlord to refuse to consent to a proposed
assignment, sublease or other transfer ("Proposed Transfer") if the Premises or
any other portion of the Property would become subject to additional or
different Government Requirements as a direct or indirect consequence of the
Proposed Transfer and/or the Proposed Transferee's use and occupancy of the
Premises and the Property. However, Landlord may, in its sole discretion,
consent to such a Proposed Transfer where Landlord is indemnified by Tenant and
(i) Subtenant or (ii) Assignee, in form and substance satisfactory to Landlord's
counsel, by Tenant and/or the Proposed Transferee FROM AND AGAINST ANY AND ALL
costs, expenses, obligations and liability arising out of the Proposed Transfer
and/or the Proposed Transferee's use and occupancy of the Premises and the
Property.

     B.     Any and all sublease agreement(s) between Tenant and any and all
subtenant(s) (which agreements must be consented to by Landlord, pursuant to the
requirements of this Lease) shall contain the following language:

     "If Landlord and Tenant jointly and voluntarily elect, for any reason
     whatsoever, to terminate the Master Lease prior to the scheduled
     Master Lease termination date, then this Sublease (if then still in
     effect) shall terminate concurrently with the termination of the
     Master Lease. Subtenant expressly acknowledges and agrees that (1) the
     voluntary termination of the Master Lease by Landlord and Tenant and
     the resulting termination of this Sublease shall not give Subtenant
     any right or power to make any legal or equitable claim against
     Landlord, including without limitation any claim for interference with
     contract or interference with prospective economic advantage, and (2)
     Subtenant hereby waives any and all rights it may have under law or at
     equity against Landlord to challenge such an early termination of the
     Sublease, and unconditionally releases and relieves Landlord, and its
     officers, directors, employees and agents, from any and all

                                       25
<Page>

     claims, demands, and/or causes of action whatsoever (collectively,
     "Claims"), whether such matters are known or unknown, latent or
     apparent, suspected or unsuspected, foreseeable or unforeseeable,
     which Subtenant may have arising out of or in connection with any such
     early termination of this Sublease. Subtenant knowingly and
     intentionally waives any and all protection which is or may be given
     by Section 1542 of the California Civil Code which provides as
     follows: "A general release does not extend to claims which the
     creditor does not know or suspect to exist in his favor at the time of
     executing the release, which if known by him must have materially
     affected his settlement with debtor.

     The term of this Sublease is therefore subject to early termination.
     Subtenant's initials here below evidence (a) Subtenant's consideration
     of and agreement to this early termination provision, (b) Subtenant's
     acknowledgment that, in determining the net benefits to be derived by
     Subtenant under the terms of this Sublease, Subtenant has anticipated
     the potential for early termination, and (c) Subtenant's agreement to
     the general waiver and release of Claims above.

             Initials:                    Initials:               "
                       --------------               ---------------
                       Subtenant                      Tenant

     C.     PERMITTED SUBLEASE. Landlord hereby acknowledges that Tenant
operates a consulting service for start up companies, and as a part of Tenant's
consulting service, Tenant intends to provide said start up companies with
office space and administrative support within Tenant's Premises. Therefore,
Landlord acknowledges that Tenant, during the Term of this Lease, intends to
sublease up to fifty percent of the Leased Premises. Provided Tenant is not in
default of this Lease, Landlord agrees that it will not exercise its right, as
provided for in Paragraph 16, to terminate the Lease as a result of a request by
Tenant to sublease fifty percent or less of the Premises to no more than four
separate start up companies at any given time ("Permitted Sublease"). In such
event, Landlord agrees to issue Landlord's standard consent to said sublease,
subject to (a) Tenant submitting to Landlord a copy of said sublease (prior to
said sublease commencing), (b) Landlord, Tenant and Subtenant thereafter
executing Landlord's standard Consent to Sublease agreement and (c) Landlord
receives payment from Tenant of Landlord's costs for processing said Sublease
Consent prior to said sublease commencing.

     D.     Notwithstanding anything to the contrary in Paragraph 16, prior to
sharing any Excess Rent with Landlord, Tenant shall first be entitled to recover
from such Excess Rent the amount of any reasonable leasing commissions paid by
Tenant to third party brokers not affiliated with Tenant.

47.  BANKRUPTCY AND DEFAULT. Paragraph 19 is modified to provide that with
respect to non-monetary defaults not involving Tenant's failure to pay Basic
Rent or Additional Rent, Tenant shall not be in default of any non-monetary
obligation if (i) more than thirty (30) days is required to cure such
non-monetary default, and (ii) Tenant commences cure of such default as soon as
reasonably practicable after receiving written notice of such default from
Landlord and thereafter continuously and with due diligence prosecutes such cure
to completion.

                                       26
<Page>

48.  ABANDONMENT. Paragraph 20 is modified to provide that Tenant shall not be
in default under the Lease if it leaves all or any part of Premises vacant so
long as (i) Tenant is performing all of its other obligations under the Lease
including the obligation to pay Basic Rent and Additional Rent (ii) Tenant
provides on-site security during normal business hours for those parts of the
Premises left vacant, (iii) such vacancy does not materially and adversely
affect the validity or coverage of any policy of insurance carried by Landlord
with respect to the Premises, and (iv) the utilities and heating and ventilation
system are operated and maintained to the extent necessary to prevent damage to
the Premises or its systems.

49.  HAZARDOUS MATERIALS. Landlord and Tenant agree as follows with respect to
the existence or use of "Hazardous Materials" (as defined herein) on, in, under
or about the Premises and real property located beneath said Premises and the
common areas of the Parcel, which includes the entire parcel of land on which
the Premises are located as shown in Green on EXHIBIT A attached hereto
(hereinafter collectively referred to as the "Property"):

     A.     As used herein, the term "Hazardous Materials" shall mean any
material, waste, chemical, mixture or byproduct which is or hereafter is
defined, listed or designated under Environmental Laws (defined below) as a
pollutant, or as a contaminant, or as a toxic or hazardous substance, waste or
material, or any other unwholesome, hazardous, toxic, biohazardous, or
radioactive material, waste, chemical, mixture or byproduct, or which is listed,
regulated or restricted by any Environmental Law (including, without limitation,
petroleum hydrocarbons or any distillates or derivatives or fractions thereof,
polychlorinated biphenyls, or asbestos). As used herein, the term "Environmental
Laws" shall mean any applicable Federal, State of California or local government
law (including common law), statute, regulation, rule, ordinance, permit,
license, order, requirement, agreement, or approval, or any determination,
judgment, directive, or order of any executive or judicial authority at any
level of Federal, State of California or local government (whether now existing
or subsequently adopted or promulgated) relating to pollution or the protection
of the environment, ecology, natural resources, or public health and safety.

     B.     Tenant shall obtain Landlord's written consent, which maybe withheld
in Landlord's discretion, prior to the occurrence of any Tenant's Hazardous
Materials Activities (defined below); provided, however, that Landlord's consent
shall not be required for normal use in compliance with applicable Environmental
Laws of customary household and office supplies (Tenant shall first provide
Landlord with a list of said materials use), such as mild cleaners, lubricants
and copier toner. As used herein, the term "Tenant's Hazardous Materials
Activities" shall mean any and all use, handling, generation, storage, disposal,
treatment, transportation, release, discharge, or emission of any Hazardous
Materials on, in, beneath, to, from, at or about the Property, in connection
with Tenant's use of the Property, or by Tenant or by any of Tenant's agents,
employees, contractors, vendors, invitees, visitors or its future subtenants or
assignees. Tenant agrees that any and all Tenant's Hazardous Materials
Activities shall be conducted in strict, full compliance with applicable
Environmental Laws at Tenant's expense, and shall not result in any
contamination of the Property or the environment. Tenant agrees to provide
Landlord with prompt written notice of any spill or release of Hazardous
Materials at the Property during the term of the Lease of which Tenant becomes
aware, and further agrees to provide Landlord with prompt written notice of any
violation of Environmental Laws in connection with Tenant's Hazardous Materials
Activities of which Tenant becomes aware. If

                                       27
<Page>

Tenant's Hazardous Materials Activities involve Hazardous Materials other than
normal use of customary. household and office supplies, Tenant also agrees at
Tenant's expense: (i) to install such H Materials monitoring, storage and
containment devices as Landlord reasonably deems necessary (Landlord shall have
no obligation to evaluate the need for any such installation or require any such
installation); (ii) provide Landlord with a written inventory of such Hazardous
Materials, including an update of same each .year upon the anniversary date of
the Commencement Date of the Lease ("Anniversary Date"); and (iii) on each
Anniversary Date, to retain a qualified environmental consultant, acceptable to
Landlord, to evaluate whether Tenant is in compliance with all applicable
Environmental Laws with respect to Tenant's Hazardous Materials Activities.
Tenant, at its expense, shall submit to Landlord a report from such
environmental consultant which discusses the environmental consultant's findings
within two (2) months of each Anniversary Date. Tenant, at its expense, shall
promptly undertake and complete any and all steps necessary, and in full
compliance with applicable Environmental Laws, to fully correct any and all
problems or deficiencies identified by the environmental consultant, and
promptly provide Landlord with documentation of all such corrections.

     C.     Prior to termination or expiration of the Lease, Tenant, at its
expense, shall (i) properly remove from the Property all Hazardous Materials
which come to be located at the Property in connection with Tenant's Hazardous
Materials Activities, and (ii) fully comply with and complete all facility
closure requirements of applicable Environmental Laws regarding Tenant's
Hazardous Materials Activities, including but not limited to (x) properly
restoring and repairing the Property to the extent damaged by such closure
activities, and (y) obtaining from the local Fire Department or other
appropriate governmental authority with jurisdiction a written concurrence that
closure has been completed in compliance with applicable Environmental Laws.
Tenant shall promptly provide Landlord with copies of any claims, notices, work
plans, data and reports prepared, received or submitted in connection with any
such closure activities.

     D.     If Landlord, in its sole discretion, believes that the Property has
become contaminated as a result of Tenant's Hazardous Materials Activities,
Landlord in addition to any other rights it may have under this Lease or under
Environmental Laws or other laws, may enter upon the Property and conduct
inspection, sampling and analysis, including but not limited to obtaining and
analyzing samples of soil and groundwater, for the purpose of determining the
nature and extent of such contamination. Tenant shall promptly reimburse
Landlord for the costs of such an investigation, including but not limited to
reasonable attorneys' fees Landlord incurs with respect to such investigation,
that discloses Hazardous Materials contamination for which Tenant is liable
under this Lease. Notwithstanding the above, Landlord may, at its option and in
its sole and absolute discretion, choose to perform remediation and obtain
reimbursement for cleanup costs as set forth herein from Tenant. Any cleanup
costs incurred by Landlord as the result of Tenant's Hazardous Materials
Activities shall be reimbursed by Tenant within thirty (30) days of presentation
of written documentation of the expense to Tenant by Landlord. Such reimbursable
costs shall include, but not be limited to, any reasonable consultant and
attorney fees incurred by Landlord. Tenant shall take all actions necessary to
preserve any claims it has against third parties, including, but not limited to,
its insurers, for claims related to its operation, management of Hazardous
Materials or contamination of the Property. Except as may be required of Tenant
by applicable Environmental Laws, Tenant shall not perform any sampling,
testing, or drilling to identify the presence of any Hazardous Materials at the
Property, without Landlord's prior written consent which may be withheld in
Landlord's discretion. Tenant shall

                                       28
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promptly provide Landlord with copies of any claims, notices, work plans, data
and reports prepared, received or submitted in connection with any sampling,
testing or drilling performed pursuant to the preceding sentence.

     E.     Tenant shall indemnify, defend (with legal counsel acceptable to
Landlord, whose consent shall not unreasonably be withheld) and hold harmless
Landlord, its employees, assigns, successors, successors-in-interest, agents and
representatives from and against any and all claims (including but not limited
to third party claims from a private party or a government authority),
liabilities, obligations, losses, causes of action, demands, governmental
proceedings or directives, fines, penalties, expenses, costs (including but not
limited to reasonable attorneys', consultants' and other experts' fees and
costs), and damages, which arise from or relate to: (i) Tenant's Hazardous
Materials Activities; (ii) any Hazardous Materials contamination caused by
Tenant prior to the Commencement Date of the Lease; or (iii) the breach of any
obligation of Tenant under this Paragraph 49 (collectively, "Tenant's
Environmental Indemnification"). Tenant's Environmental Indemnification shall
include but is not limited to the obligation to promptly and fully reimburse
Landlord for losses in or reductions to rental income, and diminution in fair
market value of the Property. Tenant's Environmental Indemnification shall
further include but is not limited to the obligation to diligently and properly
implement to completion, at Tenant's expense, any and all environmental
investigation, removal, remediation, monitoring, reporting, closure activities,
or other environmental response action (collectively, "Response Actions").
Tenant shall promptly provide Landlord with copies of any claims, notices, work
plans, data and reports prepared, received or submitted in connection with any
Response Actions.

It is agreed that the Tenant's responsibilities related to Hazardous Materials
will survive expiration or termination of this Lease and that Landlord may
obtain specific performance of Tenant's responsibilities under this Paragraph
49.

50.  CONSENT. Whenever the consent of one party to the other is required
hereunder, such consent shall not be unreasonably withheld.

51.  AUTHORITY TO EXECUTE. The parties executing this Lease Agreement hereby
warrant and represent that they are properly authorized to execute this Lease
Agreement and bind the parties on behalf of whom they execute this Lease
Agreement and to all of the terms, covenants and conditions of this Lease
Agreement as they relate to the respective parties hereto.

52.  HETCH-HETCHY PROPERTY. Notwithstanding anything to the contrary in the
Lease and except as noted herein, Tenant has a non-exclusive right to use the
Hetch-Hetchy Property (which property is owned by the City and County of San
Francisco) as reflected in Blue on EXHIBIT A attached hereto for non-exclusive
parking only. Tenant's right to use the area outlined in Blue will continue
until this right to use said property is revoked or terminated by the City and
County of San Francisco, at which time said property outlined in Blue belonging
to the City and County of San Francisco will no longer be available for Tenant's
use, and this lease will continue in full force and effect excluding Tenant's
right to use the property outlined in Blue on EXHIBIT A attached hereto or in
the event Landlord enters into a lease of said Hetch-Hetchy Property with the
City and/or County of San Francisco ("Hetch-Hetchy Lease"), Tenant will be

                                       29
<Page>

obligated to pay on the first day of each month, directly to Landlord as
Additional Rent, its pro rata share of the total amount due under the
Hetch-Hetchy Lease.

53.  TENANT'S OPTION TO TERMINATE LEASE. Provided Tenant is not in default in
any of the terms, covenants and conditions of this Lease and any amendments
thereto, Landlord hereby grants to Tenant an Option to Terminate this Lease
Agreement at the end of the twenty forth (24th) month of the Lease term, subject
to the following terms and conditions:

     A.     Tenant shall give Landlord ninety (90) days prior written notice of
Tenant's exercise of said Option to Terminate this Lease, which written notice
must be received by Landlord not later than March 9, 2002. In the event Tenant
fails to timely exercise Tenant's Option to Terminate as set forth herein in
writing, Tenant shall have no further Option to Terminate this Lease Agreement,
and this Lease Agreement shall continue in full force and effect for the full
remaining term hereof, absent this Paragraph 53.

     B.     In the event Tenant timely exercises Tenant's Option to Terminate as
set forth herein, this Lease shall terminate and be of no further force and
effect as of the expiration date of the twenty forth (24th) month of the Lease
term (i.e., June 6, 2002) with Tenant being responsible for the full performance
of all terms, covenants, and conditions of said Lease Agreement through the
effective date of termination as set forth above, subject to the payment of the
termination fee as set forth in Paragraph 53.C. below.

     C.     As consideration to be paid Landlord for the privilege of the early
termination of this Lease, Tenant shall pay to Landlord a termination fee of
$1,200,000.00. Said fee shall be due and paid by Tenant to Landlord at the time
Tenant gives Landlord its written notice of its election of early termination.

     D.     In the event Tenant timely exercises Tenant's Option to Terminate as
set forth herein, Tenant agrees to surrender the Leased Premises to Landlord,
free and clear of Tenant's occupancy or the occupancy of any subtenants, as of
the early termination date, and shall comply with all clean-up requirements as
outlined in Paragraphs 5 ("Acceptance and Surrender of Premises"), 6
("Alterations and Additions") and 49 ("Hazardous Materials") of this Lease.

     E.     The Option rights of Tenant under this Paragraph 53 are granted for
Tenant's personal benefit and may not be assigned or transferred by Tenant,
either voluntarily or by operation of law, in any manner whatsoever. In the
event that Landlord consents to a sublease or assignment under Paragraph 16,
except a Permitted Sublease as provided for in Paragraph 46.C., the Option
granted herein shall be void and of no force and effect, whether or not Tenant
shall have purported to exercise such Option prior to such assignment or
sublease.

                                       30
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                                    EXHIBIT A

                                   [SITE PLAN]

<Page>

                                    EXHIBIT B

                                    [DIAGRAM]QuickLinks
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Exhibit 10.1    
  

 
 

ASSET PURCHASE AGREEMENT    
  

        This Asset Purchase Agreement ("Agreement"), made as of the 26 day of August, 2002, is by and among Simmons-NM,
LLC, a Utah limited liability company ("SNM"), and Simmons-NM, LS, LLC, a Utah limited liability company ("LS," and
collectively with SNM, the "Seller"), and Hispanic Broadcasting Corporation, a Delaware corporation ("Buyer"). 

RECITALS

	A.
	LS
is the licensee of Radio Stations KIOT(FM), KOSZ(FM), KKRG(FM), KRQS(FM) and KKSS(FM), licensed in New Mexico and identified on Schedule 1.1(a) hereto (the "Stations),
together with related licenses and authorizations issued by the Federal Communications Commission (the "FCC").

	B.
	SNM
is the owner of the operational assets used in the broadcasting of the Stations.

	C.
	SNM
operates and manages the Stations for LS pursuant to a License Subsidiary Management Agreement (the "Management Agreement") dated as of May 18, 2001.

	D.
	SNM
desires to sell to the Buyer substantially all of the assets relating to the operation of the Stations, and the Buyer desires to purchase such assets on the terms and conditions
contained in this Agreement.

	E.
	LS
desires to assign its Federal Communications Commission ("FCC") licenses related to the Stations to Buyer, subject to consent of the FCC and the terms of this Agreement.

	F.
	The
defined terms shall have the meanings ascribed to them in Article 13. 

WITNESSETH:  

        NOW, THEREFORE, in consideration of the mutual covenants contained herein, Seller and Buyer hereby agree as follows: 

 
 

ARTICLE 1
  ASSETS TO BE CONVEYED    
  

        1.1  Closing. Subject to (i) the provisions of  Section 10.1 and (ii) the satisfaction or, to the extent
permissible by law, waiver (by the party for whose benefit the closing condition
is imposed), on or prior to the date scheduled for the Closing, of the closing conditions set forth in Article 7 hereof, including, for example, the consent of the FCC to the transaction
contemplated by this Agreement, the closing (the "Closing") of the sale and purchase of the Station Assets (as defined in Section 1.2) shall take place in the offices of the Buyer, at
11:00 a.m., local time, on the seventh day following the satisfaction or waiver of the conditions set forth in Article 7 (or on the next normal business day if the seventh day is not a
normal business day), or at such other place, time or date as Buyer and Seller may mutually agree in writing. 

        1.2  Transfer of Assets. Subject to the terms and conditions set forth in this Agreement, Seller
hereby agrees to sell, assign, transfer, convey and deliver to Buyer on the Closing Date, and Buyer agrees to purchase all of Seller's right, title and interest in, the following assets, together with
any additions thereto (pursuant to paragraph (a) or paragraph (e) below) between the date of this Agreement and the Closing Date, free and clear of all Liens, except as otherwise
provided in this Agreement, but excluding the assets described in Section 1.3 (collectively, the "Station Assets"): 

        (a)  All
licenses, permits, construction permits, and other authorizations issued by the FCC, the Federal Aviation Administration, or any other federal, state or local
governmental authority to Seller, currently in effect and used in the conduct of the business or operations of the Stations, together with renewals or modifications thereof and any additions thereto
between the date hereof 

and the Closing Date, including, without limitation, the licenses, permits and authorizations listed on Schedule 1.2(a) attached hereto (the
licenses, permits and authorizations issued by the FCC collectively are referred to herein as the "FCC Licenses;" and the FCC Licenses and the licenses, permits and other authorizations issued by any
other governmental authority collectively are referred to herein as the "Station Licenses"); 

        (b)  All
of Seller's right, title and interest in the towers, equipment, spare parts and other tangible personal property located at the Stations' transmitters or studio site
and used exclusively in the operation of the Stations and in any other tangible personal property identified on Schedule 1.2(b) (the "Personal
Property"); 

        (c)  All
contracts which (i) are listed on Schedule 1.2(c) hereto and designated as "material contracts" (the
"Material Contracts"), (ii) are listed on Schedule 1.2(c) and designated as "other contracts" provided that, as to any such contract the
assignment of which requires the consent of a party other than Seller, such consent is obtained prior to the Closing (the "Other Contracts"), or (iii) are entered into between the date hereof
and the Closing which Seller has agreed to assign, and Buyer has agreed to assume, in writing at the Closing provided that, with respect to any such contract the assignment of which requires the
consent of a party other than Seller, such consent is obtained prior to the Closing (the "Post-Agreement Contracts"); the Material Contracts, Other Contracts and Post-Agreement
Contracts being referred to in this Agreement as the "Assumed Contracts;" 

        (d)  Seller's
public inspection file, filings with the FCC relating to the Stations, and such technical information, engineering data, rights under manufacturers' warranties
as exist at Closing and relate exclusively to the assets being conveyed hereunder; 

        (e)  All
copyrights, logos, slogans, trademarks, trade names, service marks, websites, website domain names and other intellectual property used by the Stations, as listed on  Schedule 1.2(e), together with
any associated goodwill (the "Intellectual Property"); 

        (f)    Copies
of the Assumed Contracts, and all records required by the FCC to be kept by the Stations; 

        (g)  All
of Seller's proprietary information, technical information and data, machinery and equipment warranties, maps, computer discs and tapes, plans, diagrams, blueprints
and schematics, including filings with the FCC, relating to the business and operation of the Stations; 

        (h)  All
of Seller's right, title and interest in and to the agreements with advertisers to broadcast commercial messages on the Stations ("Time Sales Agreements") which have
not been performed as of the Closing; and 

        (i)    All
of Seller's right, title and interest in and to the real property listed on Schedule 1.2(h) hereto, including,
without limitation, the fee and/or leasehold interest in the real property and all of the improvements thereon (the "Real Property"), free and clear of all Liens except as indicated on  Schedule 1.2(h) hereto. 

        1.3  Excluded Assets. The Station Assets shall not include the following: 

        (a)  All
cash, cash equivalents or similar investments such as certificates of deposit, treasury bills and other marketable securities on hand and/or in banks, deposits or
prepaid expenses of Seller; 

        (b)  All
accounts receivable of Seller; 

        (c)  Any
insurance policies, promissory notes, amounts due from employees, bonds, letters of credit, certificates of deposit, or other similar items, and any cash surrender
value in regard thereto; 

        (d)  Any
pension, profit-sharing or cash or deferred (section 401(k)) plans and trust and assets thereof any other employee benefit plan or arrangement and the assets
thereof of Seller; 

        (e)  Duplicate
copies of such records as may be necessary to enable Seller to prepare and file tax returns and reports, all original financial statements and supporting
materials, all books and records that Seller is required by law to retain, and all records of Seller relating to the sale of the Station Assets; 

        (f)    Any
interest in and to any refunds of federal, state or local franchise, income or other taxes for periods prior to the Closing; 

        (g)  All
tangible and intangible personal property disposed of or consumed between the date of this Agreement and the Closing, as permitted under this Agreement; 

        (h)  Any
other assets identified on Schedule 1.3(h); 

        (i)    The
account books of original entry and general ledges and all limited liability company records of the Seller, including, but not limited to, tax returns and transfer
books; 

        (j)    Those
agreements and arrangements for the exchange of advertising time for consideration other than money which remain in effect and unfulfilled as of the Closing Date
("Barter Obligations"); and 

        (k)  Assets
not used by Seller in the operation of the Stations. 

        1.4  Assumption of Liabilities and Obligations. As of the Closing Date, Buyer shall assume and
undertake to pay, discharge and perform all obligations and liabilities of Seller arising or accruing after the Closing under the Station Licenses, Time Sales Agreements and Assumed Contracts. Buyer
shall not assume any other obligations or liabilities of Seller or the Stations, including (i) any obligations or liabilities under any contract or agreement not included in the Assumed
Contracts, (ii) any obligation or liabilities under the Assumed Contracts relating to the period prior to the Closing except insofar as an adjustment therefore is made in favor of Buyer under  Section 2.5, (iii) any claims or pending litigation or proceedings relating to the operation of the Stations prior to the Closing,
(iv) any obligations or liabilities of Seller which are unrelated to the Stations, (v) any agreements, executed or executory, relating to the exchange of broadcast time on the Stations
for goods, wares, services, advertising, promotions, merchandising or anything other than cash, (vi) any obligations relating to current or former employees of the Stations and (vii) any
obligations relating to the Excluded Assets. 

 
 

ARTICLE 2
  PURCHASE PRICE    
  

        2.1  Purchase Price. The purchase price (the "Purchase Price") for the Station Assets shall be
$22.5 million. 

        2.2  Deposit. The Buyer has delivered $1,250,000 (the "Deposit Amount") to Star Media, as the "Escrow
Agent," subject to an escrow agreement in substantially the form set forth on Schedule 2.2. The Deposit Amount is to be held subject to the
following: 

        (a)  If
the purchase of the Assets under this Agreement is not consummated due to a breach by the Buyer of any of its obligations under this Agreement, the Seller shall be
entitled to the Deposit Amount (together with interest thereon) as liquidated damages, to compensate the Seller for the damages resulting to the Seller from such breach. 

        (b)  If
the purchase of the Assets under this Agreement is not consummated due to the failure of any of the conditions in  Section 7 (other than as a result of the Buyer's breach of any of its obligations
under this Agreement), the Seller shall not be entitled to the
Deposit Amount (or interest thereon) and,
promptly after the termination of this Agreement in accordance with Section 7, the Deposit Amount (together with interest thereon) shall be paid
by the Escrow Agent to the Buyer. 

        (c)  At
the closing, the parties shall cause the Deposit Amount (and any interest earned thereon) to be paid to the Seller. 

        2.3  Payment of Purchase Price. At the Closing, Buyer shall pay Seller the Purchase Price, less the
Deposit Amount and interest earned thereon, and subject to the prorations set forth in Section 2.5, by wire transfer of immediately available
funds to an account at a bank or other financial institution pursuant to wire transfer instructions that Seller shall deliver to Buyer at least five (5) days prior to the Closing Date. 

        2.4  Allocation. The Purchase Price shall be allocated for income tax purposes in a manner as mutually
agreed between the parties based upon an appraisal prepared by Bond & Pecaro (whose fees shall be paid by Purchaser). Such agreed allocations shall be used by the parties in preparing all
relevant tax returns, information reports and other tax documents and forms. 

        2.5  Prorations. All income and expenses arising from the conduct of the business and operations of
the Stations shall be prorated between Buyer and Seller as of 12.01 a.m. local time, on the Closing Date in accordance with generally accepted accounting principles. Such prorations shall be
based upon the principles that Seller shall be entitled to all income earned and shall be responsible for all liabilities and obligations accruing in connection with the operation of the Stations
until the Closing Date, and Buyer shall be entitled to such income earned and be responsible for such liabilities and obligations accruing in connection with the operation of the Stations thereafter.
Such prorations shall include, without limitation, all ad valorem 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 12.1 of this Agreement), deposits, utility expenses, liabilities and obligations under all Time Sales
Agreements and Assumed Contracts, rents and similar prepaid and deferred items and all other expenses attributable to the ownership and operation of the Stations; provided, however, there shall be no
adjustment for, and Seller shall remain solely liable for, any contracts or agreements not included in the Assumed Contracts and any other obligation or liability not being assumed by Buyer in
accordance with Section 1.4. All real estate taxes shall be apportioned on the basis of the number of days that each party owned the Real
Property during the relevant tax year. 

        2.6  Replacement Cost. At the closing, Seller shall pay to Buyer $130,000 by wire transfer of
immediately available funds to an account designated by Buyer as the replacement cost for the backup transmitters at each of the KKRG(FM), KOSZ(FM), and KIOT(FM) stations. 

 
 

ARTICLE 3
  REPRESENTATIONS AND WARRANTIES OF SELLER    
  

        LS and SNM, each as to itself as may be applicable, represents and warrants to Buyer that, except as otherwise disclosed in the schedules to this Agreement (the
"Schedule of Exceptions"), the following representations and warranties will be true and correct on the Closing Date, except for those representations and warranties specifically noted as being true
and correct as of the date of this Agreement through the Closing Date: 

        3.1  Organization and Standing. 

        (a)  As
of the date of this Agreement through the Closing Date, SNM (i) is a Utah limited liability company duly formed, validly existing and in good standing under
the laws of the State of Utah; (ii) is qualified to do business in the State of New Mexico; and (iii) has all necessary power and authority to carry on the business of the Stations. 

        (b)  As
of the date of this Agreement through the Closing Date, LS (i) is a Utah limited liability company duly formed, validly existing and in good standing under the
laws of the State of Utah; (ii) is qualified to do business in the State of New Mexico; and (iii) has all necessary power and authority to carry on the business of the Stations. 

        3.2  Authorization and Binding Obligation. As of the date of this Agreement through the Closing Date,
SNM and LS each has all necessary power and authority to enter into and perform its respective obligations under this Agreement and the documents contemplated hereby and to consummate the transactions
contemplated hereby and thereby. As of the date of this Agreement through the Closing Date, this Agreement has been duly executed and delivered by both SNM and LS and is enforceable in 

accordance with its terms, except as may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally or the availability of equitable remedies. 

        3.3  Absence of Conflicting Agreements or Required Consents. As of the date of this Agreement through
the Closing Date, the execution, delivery and performance of this Agreement and the documents contemplated hereby (with or without the giving of notice, the lapse of time, or both) by SNM and LS,
respectively: (a) do not and will not violate any provisions of their organizational documents; (b) do not and will not conflict with, result in a material breach of, constitute a
default under, or violate any applicable law, judgment, order, ordinance, injunction, decree, rule regulation or ruling of any court or governmental authority; (c) do not and will not, either
alone or with the giving of notice or the passage of time, or both, conflict with, constitute grounds for termination of, result in a material breach of, constitute a material default under, or
accelerate or permit the acceleration of any performance
required by the terms of, any agreement, lease, instrument, license or permit to which SNM or LS is a party or by which either SNM or LS is bound; and (d) will not create any claim, liability,
mortgage, lien, pledge, condition, charge, or encumbrance upon any of the Station Assets. 

        3.4  Litigation. There is no claim, action, counterclaim, suit, litigation, labor dispute,
arbitration, or other legal, administrative, or tax proceeding, nor any order, decree, or judgment, pending, or to the knowledge of either SNM or LS threatened, against or relating to either SNM or LS
with respect to the ownership or operation of the Stations or otherwise relating to the Station Assets or the business or operations of the Stations. 

        3.5  Station and Other Licenses. 

        (a)  Schedule 1.2(a) contains a true and complete list of the Station Licenses, and there are no other licenses,
permits or other authorizations required for the lawful operation of the Stations in the manner now operated. LS has made available to Buyer true and complete copies of the Station Licenses (including
any amendments and other modifications thereto). LS is the authorized legal holder of the Station Licenses. The Station Licenses are in good standing and in full force and effect. To the best of the
knowledge of LS, the Stations and the facilities of the Stations are being operated in all material respects in accordance with the FCC Licenses and all material FCC rules and policies. 

        (b)  Except
as set forth in Schedule 1.2(a), and except for proceedings affecting the radio broadcasting industry
generally, there are no applications, petitions, complaints, investigations, forfeitures, proceedings or other actions pending or, to the best of the knowledge of either SNM or LS, threatened before
the FCC relating to the Stations or the Station Licenses. Should any such filing be made or action initiated, SNM and LS shall promptly notify Buyer thereof. To the best of the knowledge of SNM and
LS, the Stations' transmission towers and equipment have been operated and maintained by SNM in material compliance with the Communications Act and the rules and regulations of the FCC and the Federal
Aviation Administration ("FAA"), and the towers have been properly registered with the FCC and approved by the FAA as necessary. 

        (c)  LS
is qualified to hold the FCC Licenses. 

        (d)  In
addition to the Station Licenses, to the best of the knowledge of SNM and LS, either SNM and LS, as may be the case, possess all licenses and other required
governmental or official approvals, permits or authorizations, the failure to possess which would have a material adverse effect on the business, financial condition or results of operations of the
Stations. To the knowledge of SNM and LS, such licenses, approvals, permits and authorizations are in full force and effect, SNM or LS, as the case may be, is in compliance with their requirements and
no proceeding is pending or threatened to revoke or amend any of them. Schedule 1.2(a) contains a complete list of such licenses, approvals, permits and authorizations. 

        3.6  Title to and Condition of Real and Personal Property. 

        (a)  Except
as disclosed on Schedule 1.2(b), SNM and LS, respectively, have good and marketable title to the Personal
Property free and clear of all Liens. Except as disclosed on Schedule 1.2(h), SNM has either (i) good and marketable title to the Real
Property which is 

indicated on Schedule 1.2(h) as being owned by Seller ("Owned Real Property") or (ii) valid leasehold interest in and to the Real
Property which is indicated on Schedule 1.2(h) as being leased by SNM ("Leased Real Property"), in each case free and clear of all Liens. LS owns
no real property, nor does it have any leasehold interests in real property. The buildings, structures and improvements situated on the Owned Real Property are in good condition and repair, reasonable
wear and tear excepted, and are adequate and sufficient to carry on the operations of the Stations as presently conducted. 

        (b)  At
the Closing, the Personal Property will be in reasonable condition and working order, ordinary wear and tear excepted, and reasonably suitable for the uses for which
intended, free from any defects known to either SNM or LS, normal wear and tear excepted, and will be in material compliance with the published rules and regulations of the FCC and, to the best of the
knowledge of SNM or LS, all other applicable federal, state and local statutes, ordinances, rules and regulations. 

        (c)  Both
the Personal Property and the Real Property are available for immediate use in the operation of the Stations. SNM has not received written notice of any violation
of law, municipal or county ordinances or other legal requirements with respect to the Real Property or with respect to the use, occupancy or construction thereof. SNM has not received any written
notice of any pending or threatened termination or impairment of access to the Real Property or discontinuation of necessary sewer, water, electrical, gas, telephone or other utilities or services. 

        (d)  SNM
has not received any written notice (i) that either the whole or any portion of the Real Property is to be condemned, requisitioned or otherwise taken by any
public authority, (ii) of violation of restrictive covenants, deed restrictions or governmental requirements on the Real Property which have not been remedied, (iii) of any proceedings
which would cause the change, redefinition or other modification of the zoning classification or (iv) any proceedings to widen or realign any street or highway adjacent to the Real Property. 

        3.7  Assumed Contracts. To the best of the knowledge of SNM and LS, respectively, the Assumed
Contracts are in full force and effect and are legally valid, binding and enforceable by Seller in accordance with their respective terms, except as limited by laws affecting creditor's rights or
equitable principles generally. To the best of the knowledge of SNM and LS, respectively, neither SNM nor LS is in any material respect in default under Assumed Contracts. 

        3.8  Compliance with Laws. To the best of the knowledge of SNM and LS, SNM and LS, respectively, have
complied in all material respects with, and neither is in any material respect in violation of, any federal, state or local laws, statutes, rules, regulations or orders relating to the ownership and
operation of the Stations. 

        3.9  Broker's Fees. As of the date of this Agreement through the Closing Date, other than a payment
owed by Seller to Star Media Group, neither Seller nor any person or entity acting on Seller's behalf has agreed to pay a commission, finder's fee or similar payment in connection with this Agreement
or any matter related hereto to any person or entity, and no person or entity is entitled to any such payment from Seller in connection with the transactions contemplated by this Agreement. 

        3.10 Consents. As of the date of this Agreement, except for the FCC Consent provided in  Section 5.1 and the consents with
respect to certain of the Material Contracts so designated on  Schedule 1.2(c), no consent, approval, permit, or authorization of, or declaration to, or filing with any governmental or regulatory
authority or
any other third party is required (a) to consummate the transactions contemplated hereby; or (b) to permit either SNM or LS to assign or transfer the Station Assets to Buyer. The
assignment or transfer of the Material Contracts, including leases, shall be completed at no additional cost to Buyer, and Seller shall save and hold Buyer harmless from any and all such costs. 

        3.11 Taxes. 

        (a)  SNM
and LS has each filed all federal, state, county and local tax returns and reports required to be filed by them with respect to taxes for which successor liability
will apply, including 

payroll, property, withholding, social security, sales and use taxes, to the extent that such taxes relate to the Station Assets; have either paid in full all such taxes that have become due, as
reflected on any return or report, and any interest and penalties with respect thereto or have fully accrued on its books or have established adequate reserves for all taxes payable but not yet due;
and have made required cash deposits with appropriate governmental authorities representing estimated payments of taxes, including employee withholding tax obligations. No extension or waiver of any
statute of limitations or time within which to file any return has been granted to or requested by either SNM or LS with respect to any such tax. No unsatisfied deficiency, delinquency or default for
any such tax, assessment or governmental charge has been assessed (or, to the knowledge of either Seller, claimed or proposed) against SNM or LS, nor has either SNM or LS received notice of any such
deficiency, delinquency or default. 

        (b)  SNM
and LS have paid all required state, county, and local sales tax resulting from sales made in Albuquerque, New Mexico, as such taxes relate to the Station Assets. 

        3.12 Reports. All reports and statements that either SNM or LS are required to file with the FCC in
respect of the Stations have been filed, and all reporting requirements of the FCC have been complied with in all material respects. 

        3.13 Trademarks and Similar Rights. To the knowledge of SNM and LS, respectively, the use of the
Intellectual Property in connection with the conduct or operation of the Stations has not infringed, is not infringing upon and is not otherwise violating the rights of any third party in or to such
Intellectual Property or the asserted proprietary rights of others, and no notices have been received by either SNM or LS that the use of the Intellectual Property in connection with the conduct or
operation of the Stations infringes upon or otherwise violates any rights of a third party in or to the Intellectual Property or the proprietary rights of others. 

        3.14 Financial Statements of the Stations. SNM and LS have previously delivered to Buyer the
unaudited balance sheet and income statement for the Stations as of and for the year ended December 31, 2001 and unaudited balance sheet and income statement as of and for the seven
(7) months ended July 31, 2002. These financial statements have been prepared in all material respects in accordance with generally accepted accounting principles consistently followed
by SNM and LS throughout the periods indicated (except that they may omit certain footnotes required by such principles and the interim financial statements do not reflect normal year-end
adjustments and accruals) and fairly present financial position of the Stations as of the respective dates of the balance sheets included and the results of their operations for the respective periods
indicated. 

        3.15 Absence of Changes in Seller's Business Operations. With reference to the Station Assets and the
operations of the Stations, from May 31, 2002 to the date hereof, there has not been any: 

        (a)  Transaction
by SNM or LS related to the Stations entered into except in the ordinary course of business; 

        (b)  Material
adverse change in the financial condition, liabilities, assets, business or prospects of SNM or LS with respect to the Stations; 

        (c)  Destruction,
damage, or loss of any asset of SNM or LS (insured or uninsured) that materially and adversely affects the financial condition, business, or prospects of
SNM or LS with respect to the Stations; 

        (d)  Material
change in accounting methods or practices (including any change in depreciation or amortization policies or rates) by SNM or LS with respect to the Stations; 

        (e)  Sale
or transfer of any material asset used by either SNM or LS in the operation of the Stations, except in the ordinary course of business; 

        (f)    Amendment
or termination of any contract, agreement, or license related to the operation of the Stations, except in the ordinary course of business; 

        (g)  Commencement
or notice or threat of commencement of any civil litigation or any governmental proceeding against or investigation of SNM or LS or the affairs of either of
them; or 

        (h)  Labor
trouble or claim of wrongful discharge or other unlawful labor practice or action. 

        3.16 Personnel. 

        (a)  Neither
SNM nor LS is a party to or subject to any collective bargaining agreements with respect to the Stations. To the best knowledge of SNM and LS, there is no
representation or organizing effort pending or threatened against or involving or affecting either SNM or LS, as the case may be, with respect to employees employed at the Stations. There is no
pending or, to the knowledge of SNM and LS, threatened labor dispute, strike, or work stoppage affecting the Stations. 

        (b)  Each
employee benefit plan that is maintained by SNM or LS or any member of either company's controlled group of companies (within the meaning of Code
Section 414) and in which any Covered Employee participates and that is intended to be "qualified" under Code Section 401(a) has been determined by the Internal Revenue Service to be so
qualified (or an application for such a determination has been filed with the Internal Revenue Service); no event has occurred that would have a material adverse effect on the qualified status of any
such employee benefit plan; and each trust maintained in connection with each such employee benefit plan is tax-exempt under Code Section 501(a). 

        (c)  Neither
SNM nor LS maintains or has maintained, contributes to or has contributed to, or otherwise has any liability for or obligation under any employee pension benefit
plan that is a defined benefit plan (as described in Section 3(35) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") or a multiemployer plan (as described in ERISA
Section 4001(a)(3)). 

        3.17 Environmental Matters. In respect of the Real Property: 

        (a)  SNM
has not received any written notice from any governmental authority that SNM is in violation or alleged violation of any judgment, decree, order, law, license, rule
or regulation pertaining to environmental matters, including, without limitation those arising under the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 as amended ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, the Federal Water Pollution Control Act, the Solid Waste Disposal Act, as amended, the
Federal Clean Air Act, the Toxic Substances Control Act, or any state or local statute, regulation, ordinance, order or decree relating to the environment, (hereinafter "Environmental Laws"); 

        (b)  SNM
has not received written notice from any third party, including without limitation any federal, state or local governmental authority, that any hazardous waste, as
defined by 42 U.S.C. §6903(5), any hazardous substance as defined by 42 U.S.C. §9601(33) or any toxic substance, oil or hazardous material or other hazardous chemical or
hazardous substance regulated by any Environmental Laws ("Hazardous Substances") which SNM has generated, transported or disposed of has been found at any site at which a federal, state or local
agency or other third party has conducted or has ordered that SNM conduct a remedial investigation, removal or other response action pursuant to any Environmental Law; 

        (c)  No
portion of any of the Real Property has been used by SNM for the handling, manufacturing, processing, storage or disposal of Hazardous Substances in material
violation of applicable Environmental Laws; and 

        (d)  To
the knowledge of SNM, there have been no releases (i.e., any past or present releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, disposing or dumping) by SNM or threatened releases by SNM of Hazardous Substances on, upon, into or from any of the Real Property in material violation of applicable
Environmental Laws. 

        3.18 Tower Height. The Sandia Peak, KSOZ(FM) tower measures 60' high from the base terrain. 

 
 

ARTICLE 4
  REPRESENTATIONS AND WARRANTIES OF BUYER    
  

        Buyer represents and warrants to Seller as follows: 

        4.1  Organization and Standing. Buyer is a corporation duly formed, validly existing and in good
standing under the laws of the State of Delaware. 

        4.2  Authorization and Binding Obligation. Buyer has all necessary power and authority to enter into
and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement and all other documents required hereby have been duly executed and delivered by
Buyer and constitute valid and binding obligations enforceable against Buyer in accordance with their terms except as may be limited by applicable bankruptcy, insolvency or similar laws affecting
creditors' rights generally or the availability of equitable remedies. 

        4.3  Absence of Conflicting Agreements or Required Consents. Except for the FCC Consent, the
execution, delivery and performance of this Agreement by Buyer: (a) do not and will not violate any provision of Buyer's organizational documents; (b) do not and will not require the
consent of any third party or governmental authority; (c) do not and will not violate any law, judgment, order, injunction, decree, rule, regulation or ruling of any governmental authority; and
(d) do not and will not, either alone or with the giving of notice or the passage of time, or both, conflict with, constitute grounds for termination or acceleration of or result in a breach of
the terms, conditions or provisions of, or constitute a default under, any agreement, lease, instrument, license or permit to which Buyer is now subject. 

        4.4  Absence of Litigation. There is no claim, litigation, arbitration or proceeding pending or, to
the best of Buyer's knowledge, threatened, before or by any court, governmental authority or arbitrator, that seeks to enjoin or prohibit, that questions the validity of or that might materially
hinder or impair Buyer's performance of its obligations under this Agreement. 

        4.5  FCC Qualifications. To the best of Buyer's knowledge, Buyer is qualified under the Communications
Act of 1934, as amended, and the rules and regulations of the FCC to be the assignee of the FCC Licenses, it being understood that Buyer has a duty to ascertain what would cause it to lose such
qualification. There are no facts known to Buyer that would delay the consummation of the transactions contemplated by this Agreement. Buyer has no reason to believe that the FCC assignment
contemplated hereby might be challenged or might not be granted by the FCC in the ordinary course solely because of its qualifications. 

        4.6  Broker's Fees. Neither Buyer nor any person or entity acting on its behalf has agreed to pay a
commission, finder's fee or similar payment in connection with this Agreement or any matter related hereto to any person or entity, and no person or entity is entitled to any such payment from Buyer
in connection with the transactions contemplated by this Agreement. 

        4.7  Financial Qualifications. Buyer is financially qualified to consummate the transactions
contemplated by this Agreement and to certify to its financial qualifications on FCC Form 314. 

        4.8  Seller's Representations and Warranties. Buyer has not relied on or been induced to enter into
this Agreement by any statement, representation or warranty other than those expressly set forth in Article 3 of this Agreement. 

 
 

ARTICLE 5
  GOVERNMENTAL CONSENTS    
  

        5.1  FCC Application. 

        (a)  The
assignment of the FCC Licenses as contemplated by this Agreement is subject to the prior consent and approval of the FCC. Prior to the Closing, Buyer shall not
directly or indirectly control, supervise, direct, or attempt to control, supervise, or direct, the operations of the Stations, 

and all such operations, including complete control and supervision of all of the Stations' programs, employees, and policies, shall be the sole responsibility of Seller until the Closing. 

        (b)  No
later than ten (10) days after the date of this Agreement, Buyer and Seller shall prepare and jointly file a complete and grantable FCC Application, and
the parties shall use reasonable efforts to cause the FCC to accept the FCC Application for filing as soon as practicable. Seller and Buyer shall thereafter prosecute the FCC Application in good faith
and with all reasonable diligence and otherwise use their best efforts to obtain the grant of the FCC Application as expeditiously as practicable; provided, however, that neither Seller nor Buyer
shall have any obligation to satisfy any complainant or the FCC by taking any steps which would have a material adverse effect upon Seller or Buyer or upon any affiliated entity, but neither the
expense nor inconvenience to a party of defending against a complainant or an inquiry by the FCC shall be considered a material adverse effect on such party. If the FCC Consent imposes any condition
on any party hereto, such party shall use its best efforts to comply with such condition; provided, however, that no party shall be required to comply with any
condition that would have a material adverse effect upon it or any affiliated entity. If rehearing, reconsideration or judicial review is sought by a third party or by the FCC on its own motion with
respect to the FCC Consent, Buyer and Seller shall vigorously oppose such efforts for rehearing, reconsideration or judicial review; provided, however, that nothing herein shall be construed to limit
either party's right to terminate this Agreement pursuant to Article 10 (Termination Rights). 

        (c)  All
FCC filing or grant fees with respect to the assignment of the FCC Licenses from Seller to Buyer shall be paid equally by Buyer and Seller. Each party shall
otherwise bear its own costs and expenses (including the fees and disbursements of its counsel) in connection with the preparation of the portion of the FCC Application to be prepared by it and in
connection with the processing and defense of the application. 

        5.2  Other Filings and Governmental Consents. Promptly following the execution of this Agreement, the
parties shall prepare and file with the appropriate governmental authorities any other requests for approval or waiver that are required from such governmental authorities in connection with the
transactions contemplated hereby and shall diligently and expeditiously prosecute, and shall cooperate fully with each other in the prosecution of, such requests for approval or waiver and all
proceedings necessary to secure such approvals and waivers. Each party shall bear its own costs and expenses in connection with the preparation of any filings, documents or requests to be prepared by
it in order to obtain such governmental consents, approvals or waivers and in connection with any prosecution or defense by it of such filings, documents or requests. 

 
 

ARTICLE 6
  COVENANTS    
  

        6.1  Conduct of Business. 

        (a)  Affirmative Covenants. Between the date of this Agreement and the Closing Date; except as expressly permitted by this
Agreement or with the prior written consent of Buyer, which consent shall not be unreasonably withheld, Seller shall: 

        (i)    Comply
in all material respects with all laws applicable to Seller's use of the Station Assets and continue to operate and maintain the Stations in conformity with the
Station Licenses, the Communications Act of 1934, as amended, and the rules and regulations of the FCC. 

        (ii)  Maintain
the Station Assets in customary repair, maintenance and condition. 

        (iii)  Use
reasonable efforts to obtain the consent of any third party necessary for the assignment to Buyer, without any material adverse change, of the contracts listed on
Schedule 1.2(c). 

        (iv)  Timely
make or provide all payments, services or other consideration due for the Assumed Contracts so that all payments required to be made as of the Closing Date will
have been paid, except for any amounts being contested by Seller in good faith. 

        (v)  Maintain
in full force and effect the Station Licenses and all other licenses, permits and authorizations relating to the Stations and take any action necessary before
the FCC, including the preparation and prosecution of applications for renewal of the FCC Licenses, if necessary, to preserve such licenses in full force and effect without material adverse change. 

        (vi)  Maintain
insurance on the Station Assets. 

        (vii) To
the extent Seller may do so without penalty, terminate, or send notice of termination of, such of the Assumed Contracts as Buyer may request. 

        (viii)Use
its best efforts to complete all of the Stations' Barter Obligations prior to the Closing. 

        (ix)  Exercise
all renewal options on the transmitter site leases for which notice of renewal would be required to be given prior to the Closing. 

        (x)  Intentionally Deleted. 

        (xi)  Repair,
at its expense, all items of Personal Property included in the Station Assets to the extent Buyer's inspection of same reveals items which, in the reasonable
opinion of Buyer, require such repair. 

        (b)  Negative Covenants. Between the date of this Agreement and the Closing Date, except as expressly permitted by this
Agreement or with the prior written consent of Buyer, which consent shall not be unreasonably withheld, Seller shall not: 

        (i)    Terminate,
modify or amend any Assumed Contract except as contemplated in Section 6.1(a)(vii). 

        (ii)  Create
any Lien on any of the Station Assets. 

        (iii)  Sell,
assign, lease or otherwise transfer or dispose of any of the material Station Assets now owned or hereafter acquired, except for assets consumed or disposed of
in the ordinary course of business. 

        6.2  Access. Between the date hereof and the Closing Date, Seller will afford Buyer reasonable access
to the Stations and the Station Assets. Buyer, at its sole expense, shall be entitled to make such engineering and other inspections of the Station Assets as Buyer may desire, so long as such
inspection would not unreasonably interfere with the operation of the Stations. 

        6.3  No Inconsistent Action. Between the date of this Agreement and the Closing, each party shall use
its reasonable efforts to cause the fulfillment at the earliest practicable date of all of the conditions to the obligations of the other party to consummate the sale and purchase and shall take no
actions which are inconsistent with its obligations under this Agreement or that would materially hinder or delay the consummation of the transactions contemplated by this Agreement. In particular,
neither party shall take any action that would jeopardize the Station Licenses, result in its disqualification to hold the FCC Licenses or in any way delay grant of the FCC Application or consummation
of the transactions contemplated by this Agreement, and Buyer shall take no action which would impair its financial or other qualifications to consummate this transaction in accordance with its terms.
Should either party become aware of any such fact or circumstance, such party shall promptly inform the other. 

        6.4  Confidentiality.

        (a)  Buyer
and Seller shall each keep confidential all information obtained by it with respect to the other in connection with this Agreement, except where such information
is known through other lawful sources or where its disclosure is required in accordance with applicable law. If the transactions contemplated hereby are not consummated for any reason, Buyer and
Seller shall 

return to the other, without retaining a copy thereof in any medium whatsoever, any schedules, documents or other written information, including all financial information, obtained from the other in
connection with this Agreement and the transactions contemplated hereby. Except as is required for the consummation of the transaction contemplated by this Agreement, during the period from the date
hereof through the Closing Date, both Buyer and Seller shall also keep confidential the fact that the parties have entered into this Agreement and all other matters relating to this transaction. 

        (b)  Except
as required by the FCC in connection with the filing of the FCC Application, without the prior consent of both Buyer and Seller, there shall be no public
announcement relating to this Agreement. 

        6.5  Further Assurances. Seller and Buyer shall cooperate and take such actions, and execute such
other documents, at the Closing or subsequently, as may be reasonably requested by the other in order to carry out the provisions and purposes of this Agreement, including, for example, promptly
advising each other of all communications relevant to the transactions contemplated by this Agreement received from the FCC after the date of this Agreement and furnishing each other with copies of
all such written communications and summaries of all such oral communications. 

        6.6  Intentionally Deleted. 

        6.7  Employees; ERISA. 

        (a)  Employment. The Buyer may, but is not obligated to, offer employment to any or all of the employees of the Stations in
positions and on terms substantially similar to their present employment. To the extent the Buyer employs any employees of the Stations and terminates such employees after the Closing, the Buyer
(except as set forth in the last sentence of this paragraph) shall be responsible for any severance pay owed to such employee of the Stations that the Buyer terminates within one year after the
Closing Date. To the extent the employees are not offered employment with Buyer and are terminated by Seller, the Seller shall pay to any such employee severance in accordance with the policy of the
Stations. Further, to the extent that Buyer employs the general manager of the Station, R. Bruce Pollock ("the GM"), and assumes his employment contract, and within one year from the Closing Date, the
GM's employment is terminated in such a manner as to require a one-year severance payment as provided for in the GM employment contract, Seller agrees to reimburse Buyer for such amount. 

        (b)  Employee Benefits Generally. The Buyer shall provide all employees of the Stations that become employees of the Buyer
("Covered Employees") employee benefits that are maintained by the Buyer generally for its employees (the "HBC Plans") in accordance with their terms. To the extent permitted by the terms of the HBC
Plans, the Buyer will (i) waive all deductibles, waiting periods and limitations with respect to pre-existing conditions and other conditions applicable to employees of Seller under
the HBC Plans, and (ii) grant full past service credit (including credit for eligibility, benefit accrual and for vesting) to the Covered Employees for service with Seller or its subsidiaries
or affiliates under any and all of the HBC Plans. Neither this Agreement nor the consummation of the transactions contemplated by this Agreement will entitle any employee, including but not limited
to, Covered Employees, to any other severance benefits nor will it accelerate compensation due any such Covered Employee as of the Closing Date. Subject to the foregoing, the Buyer shall have the
right in the good faith exercise of
operations and managerial discretion to make changes or cause changes to be made after the Closing Date in compensation, benefits and other terms of employment and to terminate any such employee. 

        (c)  Transition Services. Buyer may identify one or more employees of the Stations that Buyer does not intend to hire on a
permanent basis and become Covered Employees but as to whom Buyer would desire to receive assistance, for a period not to exceed 60 days after Closing, in connection with the transition of the
operations of the Stations to Buyer. As to these employees, Seller will use reasonable efforts to continue the employment of such persons for such transition period after the Closing; provided,
however, that Buyer shall reimburse Seller for its incremental 

out-of-pocket costs associated with the continued employment of such persons during said transition period. 

        6.8  Cooperation Relative to Accounts Receivable. Following the Closing Date, the Buyer shall
(i) assist the Seller, as reasonably requested in the collection of the Accounts Receivable for a period of 120 days (it being understood that Buyer is not required to expend any of its
own funds in connection therewith), (ii) endorse and deliver to the Seller, on or before the 15th, 30th, 45th, 60th, 75th,
90th, and 120th days following the Closing Date (each, a "Turnover Date") and thereafter, any checks or other instruments received by the Buyer in respect of the Seller's
Accounts Receivables. In addition, the Buyer hereby agrees and acknowledges (a) that the Accounts Receivable are solely the property of the Seller, (b) that all payments received by the
Buyer or Buyer's lender on account of the Accounts Receivable shall be held in trust for the benefit of the Seller, (c) that payments received from customers of the Buyer that owe payments to
the Buyer in respect of the operations of the Stations and also owe payments to the Seller shall be applied first and to the full extent to Seller's Accounts Receivable (unless otherwise specified by
the payor), and (d) that all such payments shall be delivered to the Seller together with any necessary endorsements thereon, on each Turn Over Date and thereafter. To the extent that Seller
has not received payment on any Accounts Receivable as of the 120th day following the Closing Date, the Buyer shall have no further obligation or right to collect the Accounts Receivable, unless
otherwise agreed upon by the Seller and the Buyer and the Buyer shall promptly return any and all documentation related to the Accounts Receivable to the Seller. Notwithstanding the foregoing, Buyer
shall have no obligation to contact account debtors or undertake other collection efforts in respect of the Seller's Accounts Receivables except as specifically provided in this paragraph. 

        6.9  ADA Compliance. On or before the Closing, Seller shall, at Seller's sole cost and expense, bring
that certain two-story office building located at 8009 Marble Avenue NE, Albuquerque, New Mexico (as more specifically set forth on Schedule 1.2(h), the "Studios") into compliance
with all federal, state and local laws (including the Americans with Disabilities Act ("ADA")), which shall include, but not be limited to, installing an ADA compliant access lift (which does not have
to be an elevator), and remedy all such other non-compliant issues (whether or not ADA compliance issues), reasonable wear and tear excepted, that are identified on any
pre-closing inspection performed at the direction of Buyer, and reasonably agreed to by the parties. 

        6.10 Barter. Seller shall ensure that at the Closing Date, any and all barter obligations existing
under any Assumed Contracts will not in the aggregate exceed $25,000. 

        6.11 Dish. On or before the Closing, Seller shall relocate that certain dish that is located on or
near the Studios and encroaches on the neighboring property so that it does not encroach on the neighboring property. Prior to relocating that certain dish, Seller shall obtain Buyer's written consent
to such relocation. 

        6.12 Billboard. Seller shall proceed to close the contract being negotiated with Clear Channel
Outdoor for that certain billboard designated as Location #30512; provided, however, that Seller shall keep Buyer apprised of negotiation progress and give Buyer the right to comment on such contract
prior to its closing. 

        6.13 AM Stations. Prior to the expiration of 60 days following the Closing, Seller shall move
all of its operations that pertain to the Excluded Assets out of the Studios. Prior to the expiration of such 60-day period Buyer shall allow such operations to remain in the Studios. 

        6.14 Arbitron Agreement. During the term of that certain Station License Agreement to Receive and Use
Arbitron Radio Listening Estimates, Seller shall reimburse Buyer for 2/7 of all costs incurred by Buyer associated with and relating to performance under such contract. Seller's
obligations under this Section 6.14 shall survive closing. 

 
 

ARTICLE 7
  CONDITIONS PRECEDENT    
  

        7.1  To Buyer's Obligations. The obligations of Buyer hereunder are, at its option, subject to
satisfaction or waiver by Buyer (except for prior FCC consent), at or prior to the Closing Date, of each of the following conditions: 

        (a)  Representations, Warranties and Covenants. 

        (i)    All
representations and warranties made by Seller in this Agreement shall be true and correct in all material respects (except as otherwise expressly permitted by this
Agreement) on and as of the Closing Date as if made on and as of that date. 

        (ii)  All
of the terms, covenants and conditions to be complied with and performed by Seller under this Agreement on or prior to Closing Date shall have been complied with or
performed by Seller in all material respects. 

        (b)  FCC Consent. The FCC Consent shall have been obtained, without the imposition of any condition materially adverse to
Buyer except those that are customary in the assignment of FM licenses. LS shall have complied with any conditions imposed on it by the FCC Consent, and (solely in the event that a petition to deny
was filed in connection with the FCC Consent) the FCC Consent shall have become a Final Order (unless Buyer elects to waive the Final Order). 

        (c)  No Injunction. No order of any court or administrative agency shall be in effect which restrains or prohibits the
transactions contemplated by this Agreement in accordance with its terms. 

        (d)  Governmental Authorizations. LS shall be the holder of all FCC Licenses, and there shall not have been any modification
of any Station License relating to the Stations that could have an adverse effect on the Stations or the conduct of the business and operations of the Stations. No proceeding (other than proceedings
affecting the broadcasting industry generally) shall be pending which presents a substantial probability of revocation, failure to renew, suspension or materially adverse modification of any FCC
License. 

        (e)  Consents. Seller shall have obtained all necessary approvals and consents to the assignment to Buyer of each Assumed
Contract without any adverse change in the terms or conditions of such contracts. 

        (f)    Deliveries. Seller shall have made or stand willing to make all deliveries required under  Section 8.1. 

        (g)  Title Insurance. A title insurance company reasonably acceptable to Buyer shall be prepared to issue an owner's title
insurance policy in a standard ALTA form insuring Buyer's fee simple title to the Owned Real Property, free and clear of all Liens, subject only to the delivery of the documents, materials and funds
described in Section 8.1, the recordation of the grant deed referred to Section 8.1 and
payment of the applicable title insurance premiums. 

        7.2  To Seller's Obligations. The obligations of Seller hereunder are, at its option, subject to
satisfaction or waiver by Seller (except for prior FCC Consent), at or prior to the Closing Date, of each of the following conditions: 

        (a)  Representations, Warranties and Covenants. 

        (i)    All
representations and warranties made by Buyer in this Agreement shall be true and correct in all material respects (except as otherwise expressly permitted by this
Agreement) on and as of the Closing Date as if made on and as of that date. 

        (ii)  All
of the terms, covenants and conditions to be complied with or performed by Buyer under this Agreement on or prior to the Closing Date shall have been complied with
or performed by Buyer in all material respects. 

        (b)  FCC Consent. The FCC Consent shall have been obtained, without the imposition of any condition materially adverse to
Seller except those that are customary in the assignment of FM licenses. Buyer shall have complied with any conditions imposed on it by the FCC Consent, and (solely in the event that a petition to
deny was filed in connection with the FCC Consent) the FCC Consent shall have become a Final Order (unless Seller elects to waive the Final Order). 

        (c)  No Injunction. No order of any court or administrative agency shall be in effect which restrains or prohibits the
transactions contemplated by this Agreement in accordance with its terms. 

        (d)  Deliveries. Buyer shall have made or stand willing to make all the deliveries required under  Section 8.2 and shall have paid or stand willing to pay the
Purchase Price as provided in  Section 2.3. 

        (e)  Consent. All necessary approvals and consents to the assignment to Buyer of each Assumed Contract shall have been
obtained. 

 
 

ARTICLE 8
  DOCUMENTS TO BE DELIVERED AT THE CLOSING    
  

        8.1  Documents to be Delivered by Seller. At the Closing, Seller shall deliver to Buyer the following: 

        (a)  Copies
of resolutions of the managers of SNM and LS authorizing the execution, delivery and performance of this Agreement by SNM and LS, respectively, and the
consummation of the transactions contemplated hereby, certified by a duly authorized officer or manager of SNM and of LS, as being true, correct and complete as of the Closing Date; 

        (b)  A
certificate, dated as of the Closing Date, executed by an officer or manager of SNM and of LS, certifying that the closing conditions specified in  Section 7.1(a) have been satisfied; 

        (c)  Duly
executed instruments of conveyance and transfer, in form and substance reasonably satisfactory to Buyer, effecting the sale, transfer, assignment and conveyance of
the Station Assets to Buyer free and clear of all Liens, including, but not limited to, the following: 

        (i)    an
assignment of the FCC Licenses; 

        (ii)  bills
of sale for all Personal Property; 

        (iii)  a
grant deed for any Owned Real Property; and 

        (iv)  an
assignment of Seller's rights under the Assumed Contracts; 

        (d)  A
copy of any instrument evidencing receipt of any of the required consents described in Section 7.1(e); 

        (e)  Such
other documents, information, certificates and materials as may be required by this Agreement. 

        8.2  Documents to be Delivered by Buyer. At the Closing, Buyer shall deliver to Seller the following: 

        (a)  Copies
of resolutions of the board of directors of Buyer authorizing the execution, delivery and performance of this Agreement by Buyer and the consummation of the
transactions contemplated hereby; 

        (b)  A
certificate, dated as of the Closing Date, executed on behalf of Buyer by a duly authorized representative of Buyer, certifying that the closing conditions specified
in Section 7.2(a) have been satisfied; 

        (c)  The
Purchase Price in immediately available wire transferred federal funds as provided in Section 2.3; and 

        (d)  Such
other documents, information, certificates and materials as may be required by this Agreement. 

 
 

ARTICLE 9
  INDEMNIFICATION, SURVIVAL    
  

        9.1  Seller's Indemnities. From and after the Closing, Seller shall indemnify, defend, and hold
harmless Buyer and its affiliates and their respective members, managers, partners, directors, officers, employees, and representatives, and the successors and assigns of any of them, and any person
claiming by or through any of them, from and against, and reimburse them for, all claims, damages, liabilities, losses, costs and expenses, including, without limitation, interest, penalties, court
costs and reasonable attorneys' fees and expenses, resulting from: 

        (a)  The
ownership or operation of the Station Assets prior to the Closing, including without limitation any liabilities arising under the Station Licenses or the Assumed
Contracts which relate to events occurring prior to the Closing; 

        (b)  Any
liabilities of Seller not assumed by Buyer under this Agreement, including without limitation any liabilities arising at any time under any contract or agreement not
included in the Assumed Contracts; 

        (c)  Any
untrue representation, breach of warranty or nonfulfillment of any covenant by Seller contained in this Agreement or in any certificate, document or instrument
delivered by Seller to Buyer under this Agreement; 

        (d)  Any
failure of Seller to comply with any "bulk sales" laws applicable to the transactions contemplated hereby; or 

        (e)  Any
actions, suits, proceedings, claims, demands, assessments, judgments, costs and expenses, including reasonable legal fees and expenses, incident to any of the
foregoing or incurred in investigating or attempting to avoid the same or to oppose the imposition thereof, or in enforcing this indemnity. 

        9.2  Buyer's Indemnities. From and after the Closing, Buyer shall indemnify, defend and hold harmless
Seller and its affiliates and their respective members, managers, partners, directors, officers, employees, and representatives, and the successors and assigns of any of them, and any person claiming
by or through any of them, from and against, and reimburse them for, all claims, damages, liabilities, losses, costs and expenses, including, without limitation, interest, penalties, court costs and
reasonable attorneys' fees and expenses, resulting from: 

        (a)  any
untrue representation, breach of warranty or nonfulfillment of any covenant by Buyer contained in this Agreement or in any certificate, document or instrument
delivered by Buyer to Seller under this Agreement; 

        (b)  the
ownership or operation of the Station Assets from and after the Closing; 

        (c)  any
actions, suits, proceedings, claims, demands, assessments, judgments, costs and expenses, including reasonable legal fees and expenses, incident to any of the
foregoing or incurred in investigating or attempting to avoid the same or to oppose the imposition thereof, or in enforcing this indemnity; or 

        (d)  any
liability or obligations assumed by Buyer under this Agreement or arising from the conduct of Buyer after the Closing Date. 

        9.3  Procedure for Indemnification. The procedure for indemnification shall be as follows: 

        (a)  The
party seeking indemnification under this Article 9 (the "Claimant") shall give notice to the party from whom indemnification is sought (the "Indemnitor") of
any claim, reasonably specifying (i) the factual basis for the claim; and (ii) the amount of the claim if then known. If the claim relates to an action, suit or proceeding filed by a
third party against Claimant, notice shall be given by Claimant within fifteen (15) days after written notice of the action, suit or proceeding was given to Claimant. In all other
circumstances, notice shall be given by Claimant within thirty (30) days after Claimant becomes aware of the facts giving rise to the claim. Notwithstanding the 

foregoing, Claimant's failure to give Indemnitor timely notice shall not preclude Claimant from seeking indemnification from Indemnitor if Claimant's failure has not materially prejudiced
Indemnitor's ability to defend the claim or litigation. 

        (b)  The
Claimant shall make available to Indemnitor and/or its authorized representatives the information relied upon by the Claimant to substantiate the claim for
indemnity. 

        (c)  With
respect to any claim by a third party as to which the Claimant is entitled to indemnification hereunder, the Indemnitor shall defend against the claim with counsel
reasonably acceptable to Claimant, and the Claimant shall cooperate fully with the Indemnitor, subject to reimbursement for reasonable expenses incurred by the Claimant as the result of a request by
the Indemnitor. The Claimant shall have the right to participate in the defense of the claim at its own expense. If the Indemnitor does not assume control of the defense of any third party claim,
Claimant may, but shall have no obligation to, defend or settle such claim or litigation in such a manner as it deems appropriate, and in such event Indemnitor shall be bound by the results obtained
by the Claimant with respect to the claim (by default or otherwise) and shall promptly reimburse Claimant for the amount of all expenses (including the amount of any judgment rendered), legal or
otherwise, incurred in connection with such claim or litigation. The Indemnitor shall be subrogated to all rights of the Claimant against any third party with respect to any claim for which indemnity
was paid. 

        9.4  Limitations. Neither party shall be required to indemnify the other party under this
Article 9 unless (i) written notice of a claim under this Article 9 was received by the party within the pertinent survival period specified in  Section 9.5; and (ii) the
aggregate amount of claims against the party to which the other party (as a Claimant) is entitled to be
indemnified under this Agreement exceeds $25,000, after which the Claimant shall be entitled to recover, and the Indemnitor shall be obligated for, all additional losses, costs, liabilities, damages
and expenses for Claimant. In calculating the amount of losses to the Buyer or the Seller under Section 9.1 and Section 9.2,
(a) such losses shall be reduced by any recovery received from any third party (including insurance proceeds) as a result of the facts or circumstances giving rise to the losses, and
(b) no amount shall be included in such losses except for the party's actual out-of-pocket costs and expenses. 

        9.5  Survival of Representations, Warranties and Covenants. The representations, warranties,
covenants, indemnities and other agreements contained in this Agreement or in any certificate, document or instrument delivered pursuant to this Agreement are and will be deemed and construed to be
continuing representations, warranties, covenants, indemnities and agreements and shall survive the Closing for a period of 18 months (the "Survival Period"). No claim may be brought under this
Agreement unless written notice describing in reasonable detail the nature and basis of such claim is given on or prior to the last day of the Survival Period. In the event such notice is given, the
right to indemnification with respect thereto shall survive the Survival Period until such claim is finally resolved and any obligations thereto are fully satisfied. Any investigation by or on behalf
of any party hereto shall not constitute a waiver as to enforcement of any representation, warranty, covenant or agreement contained herein. 

 
 

ARTICLE 10
  TERMINATION RIGHTS    
  

        10.1 Termination. 

        (a)  In
addition to other available remedies, this Agreement may be terminated by either Buyer or Seller, if the party seeking to terminate is not in material default or
breach of this Agreement, upon written notice to the other if: 

        (i)    the
other party is in material breach of this Agreement and such breach has been neither cured within thirty (30) days after written notice of such breach nor
waived by the party giving such termination notice; 

        (ii)  a
court of competent jurisdiction or governmental, regulatory or administrative agency or commission shall have issued an order, decree or ruling or taken any other
action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and
nonappealable; or 

        (iii)  the
Closing has not occurred by a date that is one (1) year from the date the FCC Application is accepted by the FCC for filing (the "Upset Date"); 

        (b)  This
Agreement may be terminated by mutual written consent of Buyer and Seller. 

        (c)  If
either party believes the other to be in breach or default of this Agreement, the non-defaulting party shall, prior to exercising its right to terminate
under Section 10.1(a)(i), provide the defaulting party with notice specifying in reasonable detail the nature of such breach or default. Except
for a failure to pay the Purchase Price, the defaulting party shall have thirty (30) days from receipt of such notice to cure such default; provided that, if the breach or default is due to no
fault of the defaulting party and is not capable of cure within such thirty (30) day period, the cure period shall be extended as long as the defaulting party is diligently and in good faith
attempting to effect a cure. Nothing in this Section 10.1(c) shall be interpreted to extend the Upset Date. 

        10.2 Effect of Termination. The following sections shall survive the termination of this Agreement
pursuant to Section 10.1(a): 6.4 (Confidentiality),  11.1 (Default), 11.3 (Limitations on Damages), 12.3
(Entire Agreement; Schedules; Amendment; Waiver), 12.4 (Headings), 12.5 (Computation of Time),  12.6
(Governing Law; Waiver of Jury Trial), 12.7 (Attorneys' Fees),  12.9 (Notices), 12.10 (Counterparts) and
13.1
(Definitions). 

 
 

ARTICLE 11
  REMEDIES UPON DEFAULT    
  

        11.1 Remedies Generally. The parties acknowledge that the Station Assets and the transactions
contemplated hereby are unique, that a failure by Seller or Buyer to complete such transactions will cause irreparable injury to the other, and that actual damages for any such failure may be
difficult to ascertain and may be inadequate. Consequently, Seller and Buyer agree that each shall be entitled, in the event of a default by the other, to specific performance of any of the provisions
of this Agreement in addition to any other legal or equitable remedies to which the non-defaulting party may otherwise be entitled. 

        11.2 Limitations on Damages. Notwithstanding the foregoing, neither party shall be liable to the
other for special, consequential, punitive or exemplary damages, and in no event shall Seller's total liability to Buyer under this Agreement (including, for example, Seller's liability to Buyer
pursuant to Section 9.1 (Seller's Indemnities) and Buyer's liability to Seller pursuant to
Section 9.2 (Buyer's Indemnifies)) exceed the amount of the Purchase Price if after Closing, or the Deposit Amount, if before Closing. 

 
 

ARTICLE 12
  OTHER PROVISIONS    
  

        12.1 Transfer Taxes and Expenses. All recordation, transfer, and documentary fees (but not including
FCC fees or sales taxes, if any) imposed on this transaction shall be paid one-half by Buyer and one-half by Seller. Sales taxes, if any, imposed in connection with the
transactions contemplated by this Agreement shall be paid one-half by Buyer and one-half by Seller. Seller shall pay the premium for the title insurance referred to in  Section 7.1(g). Except as
otherwise provided in this Agreement, each party shall be solely responsible for and shall pay all other costs and
expenses (including attorney and accounting fees) incurred by it in connection with the negotiation, preparation and performance of and compliance with the terms of this Agreement. 

        12.2 Benefit and Assignment. This Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and assigns. Neither Buyer nor Seller may assign its rights under this Agreement without the prior written consent of the other; provided, however,
that Buyer may assign this Agreement to one or more of its wholly-owned subsidiaries so long as (i) such assignment does not result in any delay of the Closing and (ii) Hispanic
Broadcasting Corporation continues to remain liable hereunder for the obligations of the assignee(s). 

        12.3 Entire Agreement; Schedules; Amendment; Waiver. This Agreement and the exhibits and schedules
hereto and thereto, embody the entire agreement and understanding of the parties hereto and supersede any and all prior agreements, arrangements and understandings relating to the matters provided for
herein. Any matter that is disclosed in a schedule hereto shall be deemed to have been included in other pertinent schedules, notwithstanding the omission of an appropriate cross-reference. 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 or consent is sought. No failure or delay on the part of Buyer or Seller in exercising any right or power under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. 

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

        12.5 Computation of Time. If after making computations of time provided for in this Agreement, a time
for action or notice falls on Saturday, Sunday or a federal holiday, then such time shall be extended to the next business day. 

        12.6 Governing Law;. The construction and performance of this Agreement shall be governed by the law
of the State of New Mexico without regard to its principles of conflicts of law. 

        12.7 Attorneys' Fees. In the event of any dispute between the parties to this Agreement, Seller or
Buyer, as the case may be, shall reimburse the prevailing party for its reasonable attorneys' fees and other costs incurred in enforcing its rights or exercising its remedies under this Agreement.
Such right of reimbursement shall be in addition to any other right or remedy that the prevailing party may have under this Agreement. 

        12.8 Severability. If any term or provision of this Agreement or the application thereof to any
person or circumstance shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than
those as to which it is
held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 

        12.9 Arbitration. 

        (a)  Arbitration Disclosures. 

        (i)    ARBITRATION
IS FINAL AND BINDING ON THE PARTIES AND SUBJECT TO ONLY VERY LIMITED REVIEW BY A COURT. 

        (ii)  IN
ARBITRATION THE PARTIES ARE WAIVING THEIR RIGHT TO LITIGATE IN COURT, INCLUDING THEIR RIGHT TO A JURY TRIAL. 

        (iii)  DISCOVERY
IN ARIBITRATION IS MORE LIMITED THAN DISCOVERY IN COURT. 

        (iv)  ARBITRATORS
ARE NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING IN THEIR AWARDS. THE RIGHT TO APPEAL OR TO SEEK MODIFICATION OF ARBITRATORS' RULINGS IS VERY
LIMITED. 

        (v)  IF
YOU HAVE QUESTIONS ABOUT ARBITRATION, CONSULT YOUR ATTORNEY OR THE AMERICAN ARBITRATION ASSOCIATION. 

        (b)  Arbitration Provisions. Any dispute or controversy between the parties arising under or in connection with this Agreement
and by execution and delivery of this Agreement shall be resolved under the Commercial Arbitration Rules of the American Arbitration Association (the "Administrator"). In this regard: 

        (i)    Any
claim or controversy ("Dispute") between the parties and their assigns, including, but not limited to, Disputes arising out of or relating to this Agreement, this  Section 12.9 ("arbitration
clause"), or any related agreements or instruments relating hereto or delivered in connection herewith ("Related
Documents"), shall, at the request of either party, be resolved by binding arbitration in accordance with
the applicable arbitration rules of the Administrator. The provisions of this arbitration clause shall survive any termination, amendment or expiration of this Agreement or the Related Documents. If
any provision of this arbitration clause should be determined to be unenforceable, all other provisions of this arbitration clause shall remain in full force and effect. 

        (ii)  The
arbitration proceedings shall be conducted in Albuquerque, New Mexico at a place to be determined by the Administrator. The Administrator and the arbitrator(s)
shall have the authority to the extent practicable to take any action to require the arbitration proceeding to be completed and the arbitrator(s)' award issued within one hundred twenty
(120) days of the filing of the Dispute with the Administrator. 

        (iii)  The
arbitrator(s) shall be selected in accordance with the rules of the Administrator from panels maintained by the Administrator. A single arbitrator shall have
expertise in the subject matter of the Dispute. Where three arbitrators conduct an arbitration proceeding, the Dispute shall be decided by a majority vote of the three arbitrators, at least one of
whom must have expertise in the subject matter of the Dispute and at least one of whom must be a practicing attorney. The arbitrator(s) shall award to the prevailing party recovery of all costs and
fees (including attorneys' fees and costs, arbitration administration fees and costs, and arbitrator(s)' fees). The arbitrator(s), either during the pendency of the arbitration proceeding or as part
of the arbitration award, also may grant provisional or ancillary remedies, including but not limited to an award of injunctive relief, foreclosure, sequestration, attachment, replevin, garnishment,
or the appointment of a receiver. 

        (iv)  Judgment
upon an arbitration award may be entered in any court having jurisdiction, and the amount of the arbitration award shall be binding. The computation of the
total amount of an arbitration award shall include amounts awarded for attorneys' fees and costs, arbitration administration fees and costs, and arbitrator(s)' fees. 

        (v)  Either
party may initiate arbitration with the Administrator; however, if either party initiates litigation and another party disputes any allegation in that litigation,
the disputing party, upon the request of the initiating party, must file a demand for arbitration with the Administrator and pay the Administrator's filing fee. The parties may serve by mail a
notice of an initial motion for an order of arbitration. 

Notwithstanding
the applicability of any other law to this Agreement, the arbitration clause or Related Documents between the parties, the Federal Arbitration Act, 9 U.S.C. Section 1,  et seq., shall apply to the
construction and interpretation of this arbitration clause. 

        12.10  Notices. Any notice, demand or request required or permitted to be given under
this Agreement shall be in writing and shall be addressed to the following addresses or to such other address as any part may request: 

	

If to Seller:	
 	

Simmons-New Mexico, LLC

515 South 700 East, #1C

Salt Lake City, Utah 84102

Attention: David E. Simmons

Telephone: 801-323-9315

Telecopier 801-323-9316

E-mail: dsimmons@simmonsmedia.com
	

With a copy to:	
 	

Dorothy C. Pleshe

Callister Nebeker & McCullough

Gateway Tower East #900

East South Temple Street

Salt Lake City, UT 84133

Telephone: 801-530-7367

Telecopier: 801-364-9127

E-ail: dcpleshe@cnmlaw.com
	

If to Buyer:	
 	

Hispanic Broadcasting Corporation

3102 Oak Lawn Avenue, Suite 215

Dallas, Texas 75219

Attn: Jeffrey T. Hinson, Senior Vice President

Fax: 214-525-7750

E-mail: jhinson@hispanicbroadcasting.com
	
With a copy to:	
 	

Hallett & Perrin

2001 Bryan St., Suite 3900

Dallas, Texas 75201

Attn: Bruce H. Hallett

Fax: 214-922-4170

E-mail: bhallett@hallettperrin.com

Any
such notice, demand or request shall be deemed to have been duly delivered and received (a) on the date of personal delivery, (b) on the date of transmission if sent by facsimile,
(c) on the date of receipt if mailed by registered or certified mail, postage prepaid and return receipt requested, or (d) on the date of a signed receipt if sent by an overnight
delivery service. 

        12.11  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. 

 
 

ARTICLE 13
  DEFINITIONS    
  

        13.1 Defined Terms. Unless otherwise stated in this Agreement, the following terms when used herein
shall have the meanings assigned to them below (such meanings to be equally applicable to both the singular and plural forms of the terms defined). 

        "Agreement"
shall mean this Asset Purchase Agreement. 

        "Assumed
Contracts" shall have the meaning set forth in Section 1.2(c). 

        "Buyer"
shall have the meaning set forth in the preamble to this Agreement. 

        "Claimant"
shall have the meaning set forth in Section 9.3. 

        "Closing"
shall have the meaning set forth in Section 1.1. 

        "Closing
Date" shall mean the date on which the Closing is completed. 

        "Code"
shall mean the Internal Revenue Code of 1986, as amended, and the regulations thereunder, or any subsequent legislative enactment thereof, as in effect from time to time. 

        "FCC"
shall have the meaning set forth in the preamble to this Agreement. 

        "FCC
Application" shall mean the application or applications that Seller and Buyer must file with the FCC requesting its consent to the assignment of the FCC Licenses from Seller to
Buyer. 

        "FCC
Consent" shall mean the action by the FCC granting the FCC Application. 

        "FCC
Licenses" shall have the meaning set forth in Section 1.2(a).

        "Final
Order" shall mean action by the FCC with respect to the FCC Application (i) which has not been vacated, reversed, stayed, set aside, annulled or suspended, (ii) with
respect to which no timely appeal, request for stay or petition for rehearing, reconsideration or review by any party or by the FCC on its own motion is pending, and (iii) as to which the time
for filing any such appeal, request, petition or similar document or for the reconsideration or review by the FCC on its own motion under the Communications Act of 1934, as amended, has expired. 

        "Indemnitor"
shall have the meaning set forth in Section 9.3. 

        "Liens"
shall mean mortgages, deeds of trust, liens, security interests, pledges, collateral assignments, condition sales agreements, leases, encumbrances, claims or other defects of
title, but shall not include (i) liens for current taxes not yet due and payable, (ii) other liens imposed by law (such as materialman's mechanic's, carrier's, worker's and repairman's
liens) arising in the ordinary course of business (provided that such liens do not interfere in any material respect with the use of the Station Assets as currently used and that Seller remains liable
for paying such liens), (iii) valid leases or subleases to third parties with respect to property not used in the operation of the Stations, and which are listed on  Schedule 1.2(h); and
(iv) in respect of the Real Property, defects in title or other matters that do not materially adversely affect the
continued use of the Real Property as currently used by Seller. 

        "Material
Contracts" shall have the meaning set forth in Section 1.2(c). 

        "Other
Contracts" shall have the meaning set forth in Section 1.2(c). 

        "Personal
Property" shall have the meaning set forth in Section 1.2(b). 

        "Purchase
Price" shall have the meaning set forth in Section 2.1. 

        "Real
Property" shall have the meaning set forth in Section 1.2(i). 

        "Seller"
shall have the meaning set forth in the preamble to this Agreement. 

        "Station"
shall have the meaning set forth in the preamble to this Agreement. 

        "Station
Assets" shall mean the assets to be transferred to Buyer hereunder, as more fully specified in Section 1.2. 

        "Station
Licenses" shall have the meaning set forth in Section 1.2(a).

        "Survival
Period" shall have the meaning set forth in Section 9.5. 

        "Upset
Date" shall have the meaning set forth in Section 10.1(a)(iii). 

        13.2 Miscellaneous Terms. The term "or" is disjunctive; the term "and" is conjunctive. The term
"shall" is mandatory; the term "may" is permissive. Masculine terms apply to females as well as males; feminine terms apply to males as well as females. The term "includes" or "including" is by way of
example and not limitation. 

        [Remainder
of page intentionally left blank] 

[signature
page of Simmons New Mexico/Hispanic Broadcasting Asset Purchase Agreement] 

        IN
WITNESS WHEREOF, the parties hereto have caused this Asset Purchase Agreement to be duly executed as of the date first written above. 

	

        SELLER	
 	

Simmons-New Mexico, LLC
	

 	
 	

By:	
 	

/s/  D. Simmons      
 David E. Simmons, Chairman and Manager
	

 	
 	

Simmons-New Mexico, LS, LLC
	

 	
 	

By:	
 	

/s/  D. Simmons      
 David E. Simmons, Manager
	

        BUYER	
 	

Hispanic Broadcasting Corporation
	

 	
 	

By:	
 	

/s/  Jeffrey T. Hinson      
 Jeffrey T. Hinson, Senior Vice President

QuickLinks

Exhibit 10.1

ASSET PURCHASE AGREEMENT

ARTICLE 1 ASSETS TO BE CONVEYED

ARTICLE 2 PURCHASE PRICE

ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER

ARTICLE 5 GOVERNMENTAL CONSENTS

ARTICLE 6 COVENANTS

ARTICLE 7 CONDITIONS PRECEDENT

ARTICLE 8 DOCUMENTS TO BE DELIVERED AT THE CLOSING

ARTICLE 9 INDEMNIFICATION, SURVIVAL

ARTICLE 10 TERMINATION RIGHTS

ARTICLE 11 REMEDIES UPON DEFAULT

ARTICLE 12 OTHER PROVISIONS

ARTICLE 13 DEFINITIONS

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