Document:

Exhibit 10.2

 

LOCAL MARKETING AGREEMENT

 

THIS LOCAL MARKETING
AGREEMENT (this “Agreement”) is made and entered into as of this 15th day of September, 2017, by and between
AM 570, LLC, a Maryland limited liability company (“Licensee”) and Salem Media of Virginia, Inc., a corporation
organized and subsisting under the laws of the State of Virginia (the “Programmer”).

 

BACKGROUND

 

WHEREAS, Licensee
is the Federal Communications Commission (the “FCC”) licensee of radio station WSPZ(AM), 570 kHz, Bethesda,
MD, (FCC Facility ID No. 11846) (the “Station”), and has available broadcasting time on the Station;

 

WHEREAS, Programmer
desires to avail itself of the broadcast time of the Station for the presentation of a programming service, including the sale
of advertising time, in accordance with procedures and policies approved by the FCC.

 

WHEREAS, Licensee
and Programmer have entered into an Asset Purchase Agreement (“Purchase Agreement”), of equal date hereto, pursuant
to which Licensee will convey and Programmer will purchase certain assets associated with the Station.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants and agreements contained herein, the parties hereto, intending
to be legally bound hereby, agree as follows:

 

		1.	Sale Of Time

 

		1.1.	Broadcast of Programming

 

During the Term, as defined
below, Licensee shall make available exclusively to Programmer broadcast time on the Station for up to 24 hours a day, seven days
a week for the broadcast of Programmer’s programs (the “Programming”); provided that Licensee shall specifically
reserve from such time: (a) downtime occasioned by routine maintenance consistent with prior practice; (b) such times as the parties
may agree, not to exceed two (2) hours per week, during which time Licensee may broadcast additional programming designed to address
the concerns, needs and issues of the Station’s listeners (“Licensee’s Public Service Programming”);
(c) times when Programmer’s programs are not accepted or are preempted by Licensee in accordance with Section 2.3
of this Agreement or because such Programming does not satisfy the standards of Section 2.4.1 of this Agreement; and (d)
Force Majeure Events, as defined in Section 1.5 of this Agreement (such hours, subject to the reservation, being the “LMA
Hours”).

 

     

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		1.2.	Term

 

This Agreement shall
be effective and binding between the parties as of the date first set forth above. The term for the provision of Programming by
Programmer and related performance thereto by both parties of this Agreement (the “Term”) shall be for the period
commencing on September 15, 2017, or such other time as the parties mutually agree (the “Commencement Date”),
and terminating on the earlier of: (a) three (3) months following the termination of the Purchase Agreement for any reason other
than as a result of Programmer’s default of the Purchase Agreement; (b) the Closing Date, as defined in the Purchase Agreement;
(c) termination of this Agreement pursuant to Section 7; or (d) eighteen (18) months after the Commencement Date. Notwithstanding
the foregoing, the parties may mutually agree to extend this Agreement for a period in excess of the period in (d) on mutually
agreeable terms.

 

		1.3.	Payments

 

Programmer shall pay
to Licensee the fees as set forth on Schedule 1.3 hereto, for the rights granted under this Agreement. In accordance with
Licensee’s rights under Section 2.3.2 below, and provided Programmer is not then in default hereof, if Licensee preempts,
deletes, delays, suspends, cancels or fails to broadcast any of the Programming during time that would otherwise be considered
as LMA Hours, Programmer shall receive a credit equal to the pro rata portion of the fees paid for the month in which such
preemption, deletion, delay, suspension, cancellation or failure to broadcast occurs pursuant to Section 2.3.2. Any credit
due Programmer shall be applied to the fees due immediately following the calendar month during which such suspension, cancellation,
preemption or delay subject to credit occurred.

 

		1.4.	Advertising and Programming Revenues

 

During the broadcast
of the Programming delivered to the Station by Programmer, Programmer shall have full authority to sell for its own account commercial
time or block programming time on the Station and to retain all revenues and all accounts receivable arising from or relating to
the Programming, including, without limitation, promotion-related revenues. Programmer may sell such time in combination with the
sale of time on any other broadcast stations of its choosing. Licensee may barter or sell commercial time or mentions within Licensee’s
Public Service Programming or within programming presented in accordance with Section 2.3.2, provided that such barter or
sale is incidental to the purpose of such programming and not for the commercial advantage of Licensee.

 

		1.5.	Force Majeure Events

 

Any failure or impairment
of facilities or any delay or interruption in broadcasting the Programming due to fires, labor unrest, embargoes, civil commotion,
rationing or other orders or requirements, acts of civil or military authorities, acts of God, strikes or threats thereof, other
contingencies, including equipment failures, beyond the reasonable control of the parties or any other causes beyond the control
of Licensee (collectively, “Force Majeure Events”), shall not constitute a breach of this Agreement.

 

     

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		2.	Programming And Operating Standards

 

		2.1.	Nature of the Programming

 

Licensee acknowledges
that Programmer has provided a description of the nature of the Programming to be produced by Programmer and Licensee has determined
that the broadcasting of the Programming on the Station will serve the public interest.

 

		2.2.	Right to Use the Programming

 

The ownership of and
all rights to use the Programming furnished by Programmer and to authorize its use in any manner and in any media whatsoever shall
be at all times vested solely in Programmer except as specifically authorized by this Agreement.

 

		2.3.	Obligations and Rights of Licensee

 

Licensee shall be ultimately
responsible for the control of the day-to-day operations of the Station and for complying with the FCC’s rules and regulations
with respect to (a) the staffing and maintenance of the Station’s main studio; (b) the broadcast of political advertisements
and programming (including, without limitation, the FCC’s rules, regulations and policies with respect to equal opportunities,
lowest unit charge and reasonable access); (c) the broadcast and nature of public service programming; (d) the maintenance of political
and public inspection files and the Station’s logs; (e) the ascertainment of issues of community concern; (f) the preparation
of all quarterly issues/programs lists; and (f) the preparation and filing with the FCC of all required material with respect to
the Station, including the Station’s Biennial Ownership Report and periodic EEO reports. Notwithstanding the ultimate responsibility
of Licensee for the foregoing, Programmer shall assist Licensee with such activities including, as applicable, assisting with the
upload of new and legacy public file documents to the Station’s online public file.

 

		2.3.1.	Licensee’s Right to Reject Programming

 

Licensee shall retain
the right to accept or reject any Programming or advertising announcements or material which Licensee in its good faith, reasonable
judgment deems contrary to the Communications Act of 1934, as amended and the rules, regulations and policies of the FCC promulgated
thereunder (collectively, the “FCA”). Licensee reserves the right to refuse to broadcast any Programming containing
matter that Licensee reasonably in good faith believes to be, or that Licensee reasonably in good faith believes may be determined
by the FCC or any court or other regulatory body with authority over Licensee or the Station to be, violative of any right of any
third party or indecent, profane or obscene. Licensee may take any other actions which Licensee in its good faith, reasonable judgment
deems necessary to ensure that the Station’s operations comply with the laws of the United States, the State of Maryland,
and the FCA (including the prohibition on unauthorized transfers of control). If, in the reasonable good faith judgment of Licensee
or its General Manager, any portion of the Programming presented by Programmer does not meet the requirements of Section 2.4.1
of this Agreement, Licensee may suspend, cancel or refuse to broadcast any such portion of the Programming. Licensee expressly
agrees that its right to reject or preempt any of the Programming or take action to ensure compliance with applicable laws shall
not be exercised in an arbitrary manner or for the commercial advantage of Licensee, and the exercise by Licensee thereof shall
be limited to the minimum extent reasonably necessary.

 

     

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		2.3.2.	Licensee’s Right to Preempt Programming for Special
Events

 

Licensee shall have
the right, in its reasonable, good faith judgment, to preempt any of the broadcasts of the Programming in order to broadcast a
program deemed by Licensee, in its good faith, reasonable judgment, to be of greater national, regional, or local interest. In
all such cases, Licensee will use its best efforts to give Programmer reasonable advance notice of its intention to preempt any
regularly scheduled Programming, and, in such event, Programmer shall receive a payment credit for the Programming so omitted consistent
with the intent and pursuant to the terms of Section 1.3 of this Agreement. Licensee expressly agrees that its right to
reject or preempt any of the Programming shall not be exercised in an arbitrary manner or for the commercial advantage of Licensee.

 

		2.3.3.	Maintenance and Repair of Transmission Facilities

 

Licensee, with the
cooperation and assistance of Programmer, shall use commercially reasonable efforts to maintain the Station’s transmission
equipment and facilities, including the respective antenna, transmitter and transmission line, and, shall provide for the delivery
of electrical power to the Station’s transmitting facilities in order to permit operation of the Station. Licensee shall
use commercially reasonable efforts to undertake such repairs as are reasonably necessary to resume operation of the Station with
the maximum authorized facilities, as expeditiously as possible following the occurrence of any loss or damage preventing such
operation.

 

		2.3.4.	Main Studio

 

Licensee shall maintain
a main studio (the “Main Studio”) for the Station in the manner required under FCC rules. Licensee shall lease
from Programmer space for the Main Studio at a property owned or leased by Programmer that complies with the FCC’s main studio
location rules, pursuant to a sublease agreement which Licensee and Programmer shall execute concurrently with this Agreement.
For the sake of clarity, all Licensee equipment and assets located at the Main Studio shall be and remain the property of Licensee
at all times during the Term. In the event of termination of this Agreement as provided herein, other than due to the closing of
the purchase of the Station under the Purchase Agreement, Programmer shall allow Licensee at least 60-days to move the Station’s
main studio to a new location and to remove Licensee’s equipment from the Main Studio leased from Programmer.

 

     

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		2.3.5.	Compliance with FCC Technical Rules

 

Licensee shall be ultimately
responsible for ensuring compliance by the Station with the technical operating and reporting requirements established by the FCC.

 

		2.4.	Obligations and Rights of Programmer

 

		2.4.1.	Compliance with Laws and Station Policies

 

All Programming shall
conform in all material respects to all applicable provisions of the FCA, all other laws or regulations applicable to the broadcast
of programming or commercial advertisements by the Station, and the standards set forth in Schedule 2.4.1. At no time during
the Term shall Programmer or its employees or agents represent, hold out, describe, or portray Programmer as the licensee of the
Station.

 

		2.4.2.	License to Use Call Sign

 

During the Term of
this Agreement, Licensee grants Programmer the right to use the Station’s call signs in connection with and during the Programming
during the Term.

 

		2.4.3.	Cooperation with Licensee

 

Programmer, on behalf
of Licensee, shall furnish within the Programming all Station identification announcements required by the FCC, and shall, upon
request by Licensee, provide to Licensee information with respect to any of the Programming which is responsive to the public needs
and interests of the area served by the Station to assist Licensee in the preparation of any required programming reports and will
provide upon request other information to enable Licensee to prepare other records, reports and logs required by the FCC or other
local, state or federal governmental agencies and, at the request of Licensee, to assist with the preparation of such records,
logs and reports. Programmer shall maintain, deliver to Licensee and assist Licensee with the required public file obligations
related to all records and information required by the FCC to be placed in the public inspection file of the Station pertaining
to the broadcast of political programming and advertisements, in accordance with the provisions of Sections 73.1940 and 73.3526
of the FCC’s rules, and agrees that, when presenting to Licensee for broadcast on the Station sponsored programming addressing
political issues or controversial subjects of public importance, Programmer will do so in accordance with the provisions of Section
73.1212 of the FCC’s rules and the applicable rules of the Federal Election Commission. Programmer shall consult with Licensee
and adhere to all applicable provisions of the FCA, as announced from time to time, with respect to the carriage of political advertisements
and programming (including, without limitation, the rights of candidates and, as appropriate, other parties, to “equal
opportunities” and “reasonable access”) and the charges permitted for such programming or announcements,
and, in the event of a dispute, Licensee’s determination shall govern.

 

     

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		2.4.4.	Payola and Plugola

 

Programmer shall provide
to Licensee in advance any information known to Programmer regarding any money or other consideration which has been paid or accepted,
or has been promised to be paid or to be accepted, for the inclusion of any matter as a part of any programming or commercial material
to be supplied to Licensee by Programmer for broadcast on the Station, unless the party making or promising such payment is identified
in the program as having paid for or furnished such consideration in accordance with FCC requirements. Commercial matter or programming
with obvious sponsorship identification will not require disclosure beyond the sponsorship identification contained in the commercial
copy or announced in connection with the programming. Programmer shall at all times endeavor in good faith to comply with the requirements
of Sections 317 and 507 of the FCA.

 

		2.4.5.	Compliance with Copyright Act.

 

Programmer shall not
broadcast any material on the Station in violation of the Copyright Act or the rights of any person. All music supplied by Programmer
shall be (i) licensed by the program provider or by a music licensing agent such as ASCAP, BMI or SESAC, (ii) in the public domain,
or (iii) cleared at the source by Programmer. Licensee shall not be obligated to pay any music licensing fees or other similar
expenses required in connection with the material broadcast by Programmer on the Station, provided that Licensee will maintain
ASCAP, BMI, and SESAC music licenses if needed for the Station, subject to reimbursement of all music licensing fees due for the
Station under those licenses by Programmer.

 

		2.4.6.	Handling of Communications

 

Programmer shall provide
Licensee with the original or a copy of any correspondence from a member of the public relating to the Programming to enable Licensee
to comply with FCC rules and policies, including those regarding the maintenance of the public inspection file. Licensee shall
not be required to receive or handle mail, cables, telegraph or telephone calls in connection with the Programming unless Licensee
has agreed to do so in writing. Licensee shall promptly forward to Programmer all correspondence, payments, communications or other
information and/or documents which it receives and which relate to the Programming, including without limitation, invoices, billing
inquiries, checks, money orders, wire transfers, or other payments for services or advertising.

 

		2.4.7.	Use of Main Studio / Delivery of Programming

 

Programmer shall be
entitled to use the Main Studio in the performance of its obligations under this Agreement, provided that such use shall be subject
to the direction and control of Licensee’s employees and shall not materially interfere with Licensee’s use of the
Main Studio. Programmer shall be solely responsible for delivering the Programming to the Station’s transmitter site or the
Main Studio (as directed by Licensee) for broadcast on the Station. In the event that Programmer needs to obtain a studio transmitter
link or similar FCC authorization to facilitate Programmer’s delivery of the Programming, Licensee agrees that it shall cooperate
reasonably with Programmer to file any required application for such authority with the FCC.

 

     

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		3.	Responsibility For Employees And Expenses

 

		3.1.	Licensee’s Responsibility for Employees and Expenses

 

Licensee will employ
at least two persons at the Station: a full-time management-level employee (who may or may not also be the designated Chief Operator),
who shall report and be solely accountable to Licensee and shall direct Licensee’s day-to-day operations of the Station,
and a staff-level employee who shall report to and assist the management-level employee in the performance of his or her duties.
Licensee will be responsible for payment of the salaries, benefits, taxes, insurance and similar expenses for these two employees,
which payment shall be reimbursed by Programmer. Whenever at the Main Studio or otherwise on the premises of the Station, all of
Programmer’s personnel shall be subject to the supervision and the direction of the Licensee’s General Manager and/or
the Licensee’s Chief Operator, as designated by Licensee. Licensee shall be responsible for the timely payment of the following
expenses: all capital expenses for the Station other than those relating to maintenance and repair of the studio and transmitter
site, any expenses due to casualty pursuant to Section 10, and all expenses that do not relate to the Station as currently operated.
In addition, subject to reimbursement by Programmer pursuant to Schedule 1.3, Licensee shall be responsible for the timely payment
of all costs and expenses related to the continued operation of the Station which are not paid directly by Programmer, including
FCC regulatory and other fees, lease and/or mortgage payments for the Main Studio, and transmitter site, real estate and personal
property taxes; rent and utility costs (telephone, electricity, etc.) relating to the Main Studio, existing transmitting site,
transmitter and antennas, and Licensee’s expenses under ASCAP, SESAC and BMI licenses, as required by such organizations;
(e) maintenance and repair costs with respect to the transmitting equipment of the Station at the Main Studio or the transmitter
site; and (f) all other reasonable and necessary payments related to the continued operation of the Station as it presently operates
incurred by Licensee which are not paid directly by Programmer.

 

		3.2.	Programmer’s Responsibility for Employees and Expenses

 

Programmer shall be responsible
for the artistic personnel and material for the production of the Programming to be provided under this Agreement. Programmer shall
employ and be responsible for the salaries, taxes, insurance and related costs for all of its personnel used in fulfillment of
its rights and obligations under this Agreement. Programmer shall pay for all costs associated with production of the Programming
and listener responses, including any copyright fees, and all other costs or expenses attributable to the Programming that is delivered
by Programmer and broadcast on the Station. Programmer shall maintain at its expense commercially reasonable coverage for broadcaster’s
liability insurance, worker’s compensation insurance and commercial general liability insurance with reputable insurance
companies for operation of the Station, in amounts reasonably acceptable to Licensee. Licensee shall be named as an additional
insured on such policies, and such policies shall not be terminable without notice to Licensee and an opportunity to cure any default
thereunder. Programmer shall deliver to Licensee upon request a current certificate establishing that such insurance is in effect.
Programmer shall be responsible for adherence to the FCC’s EEO rules and policies for broadcast radio stations.

 

     

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		3.3.	No Third Party Beneficiary Rights

 

No provisions of this
Agreement shall create any third party beneficiary rights of any employee or former employee (including any beneficiary or dependent
thereof) of Licensee in respect of continued employment (or resumed employment) with Licensee or with Programmer or in respect
of any other matter.

 

		4.	Assignment And Assumption Of Certain Agreements, Rights
And Obligations

 

Except for the reimbursement
obligations set forth in Schedule 1.3, Programmer expressly does not, and shall not, assume or be deemed to assume, under this
Agreement or otherwise by reason of the transactions contemplated hereby, any liabilities, obligations or commitments of Licensee
of any nature whatsoever. Notwithstanding the foregoing, Programmer shall accept and broadcast on Station advertising supplied
by Christal Radio Sales, Inc. pursuant to the Christal Representation Agreement dated December 1, 2014 for Station with Licensee,
as assignee of Red Zebra Holdings, LLC. Any payments received by Licensee for such advertising shall be credited to Programmer.

 

		5.	Insurance and Indemnification

 

		5.1.	Insurance

 

During the Term, Programmer
shall maintain its own policies of insurance covering liability for property damage in amounts customary for similar businesses
in the Washington, D.C. area, which policies will name Licensee as an additional insured, and will indemnify and hold Licensee
harmless with respect to any liabilities for property damage caused by Programmer, its agents or employees. The policies shall
include property coverage of Licensee’s property relating to the Station located at the Station’s transmitter site(s),
the Main Studio, and in any storage facilities, including damage or loss from fire, theft, and other casualties typically covered
in property policies.

 

		5.2.	Indemnification

 

From and after the Commencement
Date, Licensee and Programmer shall indemnify, defend, protect and hold harmless the other and their members, managers, officers,
directors, owners and affiliates (the “Indemnitees”) from and against any and all losses, costs, damages, liabilities
or expenses (including reasonable attorneys’ fees and expenses) (collectively, “Claims”) that are proximately
caused by (a) any programming provided by such party for broadcast on the Station; (b) any breach by such party of a representation,
warranty, covenant or other agreement contained in this Agreement; and (c) the negligence of such party, its employees or agents
in fulfilling its obligations under this Agreement. Without limiting the generality of the preceding sentence, Licensee shall indemnify
and hold Programmer and its Indemnitees harmless from and against, and Programmer will indemnify and hold Licensee and its Indemnitees
harmless from and against, liability with respect to matters arising from or relating to any programming produced or supplied by
the indemnifying party, including liability for libel, slander, infringement of copyright or other intellectual property, violation
of rights of privacy or proprietary rights, and for any claims of any nature, including fines imposed by the FCC, as a result of
the broadcast on the Station of any programming produced or supplied by the indemnifying party, including, without limitation,
any programming which the FCC determines was in violation of any FCC rule, regulation or policy relating to lotteries or games
of chance; obscenity, profanity or indecency; broadcast hoaxes; political broadcasting; or the adequacy of sponsorship identification.

 

     

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		5.3.	Procedure for Indemnification

 

The procedure for indemnification
shall be as follows:

 

		5.3.1.	Notice

 

The party seeking indemnification
(the “Claimant”) shall give notice to the party from whom indemnification is sought (the “Indemnitor”)
of any claim, whether solely between the parties or brought by a third party, specifying (i) the factual basis for the Claim, and
(ii) the amount of the Claim. 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) business 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) business days after Claimant becomes,
or should have become, 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 except to the extent that
Claimant’s failure has materially prejudiced Indemnitor’s ability to defend the claim or litigation.

 

		5.3.2.	Claims Between Parties

 

With respect to claims
between the parties, following receipt of notice from the Claimant of a Claim, the Indemnitor shall have thirty (30) business days
to make any investigation of the Claim that the Indemnitor deems necessary or desirable. For the purposes of this investigation,
the Claimant agrees to make available to the Indemnitor and/or its authorized representatives the information relied upon by the
Claimant to substantiate the Claim. If the Claimant and the Indemnitor cannot agree as to the validity and amount of the Claim
within the 30-day period (or any mutually agreed upon extension thereof), the Claimant may seek appropriate legal remedy.

 

     

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		5.3.3.	Third Party Claims

 

With respect to any
Claim by a third party as to which the Claimant is entitled to indemnification hereunder, the Indemnitor shall have the right at
its own expense to participate in or assume control of the defense of the Claim, and the Claimant shall cooperate fully with the
Indemnitor, subject to reimbursement for actual out-of-pocket expenses incurred by the Claimant as the result of a request by the
Indemnitor. If the Indemnitor elects to assume control of the defense of any third-party Claim, the Claimant shall have the right
to participate in the defense of the Claim at its own expense. If the Indemnitor does not elect to assume control or otherwise
participate in the defense of any third party Claim, Claimant may, but shall have no obligation to, defend or settle such Claim
or litigation in such manner as it deems appropriate, and in any 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.

 

		5.4.	Limitations

 

Neither Programmer nor
Licensee shall have any obligation to the other party for any indemnification hereunder except upon compliance by the other party
with the provisions of this Section 5.

 

		6.	Default and Cure

 

		6.1.	Events of Default

 

The following shall,
after the expiration of the applicable cure periods as set forth in Section 6.2, each constitute an Event of Default under
this Agreement by the party responsible for the action, or failure to act, described below:

 

		6.1.1.	Non-Payment

 

Programmer’s
failure to pay when due the Monthly Fee and the Station Expenses payable under Section 1.3 and Schedule 1.3 of this
Agreement.

 

		6.1.2.	Default in Covenants or Adverse Legal Action

 

a.     Any
party (i) defaults in the performance of any material covenant, condition or undertaking contained in this Agreement, (ii) makes
a general assignment for the benefit of creditors, or (iii) files or has filed against it a petition for bankruptcy, for reorganization
or an arrangement, or for the appointment of a receiver, trustee or similar creditors’ representative for the property or
assets of such party under any federal or state insolvency law, which, if filed against such party, has not been dismissed or discharged
within 60 days thereafter, or

 

b.     As
a consequence of any act or omission of Licensee or Programmer, the FCC issues a Hearing Designation Order or commences any hearing
with respect to the Station, issues a Show Cause Order, a Letter of Inquiry (as to which counsel for the party not responsible
for the matter addressed in such Letter of Inquiry determines in the reasonable exercise of his or her discretion that there is
a reasonable basis to believe that the FCC may take material adverse action with respect such matter), Notice of Apparent Liability,
or Order of Forfeiture with respect to the Station, provided, however that it shall not be an Event of Default by one party, if
such Order, Letter of Inquiry, Notice of Apparent Liability or hearing results from the act or omission of the other party hereto.
This subsection (b) shall not apply to hearings with respect to any FCC applications during the Term for changes to the facilities
of the Station.

 

     

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		6.1.3.	Breach of Representation

 

Any material representation
or warranty made by either party to this Agreement, or in any certificate or document furnished by either party to the other pursuant
to the provisions of this Agreement, proves to have been false or misleading in any material respect as of the time made or furnished.

 

		6.1.4.	Breach of Purchase Agreement

 

Any material breach
of the Purchase Agreement.

 

		6.2.	Cure Periods

 

Except as provided herein,
an Event of Default shall not be deemed to have occurred until the non-defaulting party has provided the defaulting party with
written notice specifying the event or events that, if not cured within thirty (30) days, would constitute an Event of Default;
provided, however, that (i) if the Event of Default is non-monetary and cannot reasonably be cured within such period, and if diligent
efforts to cure promptly commence, then the cure period shall continue as long as such diligent efforts to cure continue, and (ii)
in the event of a non-payment as provided in Section 6.1.1 hereof, Licensee shall not have to give such notice or opportunity
to cure if, within the preceding six (6) months, such notice has previously been given. If not cured within the cure period, the
Event of Default shall be deemed to have occurred as of the date the event (that is, the act, failure to act, omission, filing,
or other such occurrence) triggering the Event of Default occurred. The cure period for a failure by Programmer to supply the Programming
for broadcast by the Station shall be ten (10) business days from the receipt of written notice by Licensee.

 

		7.	Termination

 

		7.1.	Termination Upon Default

 

Upon the occurrence of
any Event of Default, the non-defaulting party may terminate this Agreement, provided that it is not also in material default of
this Agreement, and may seek such remedies at law and equity as provided herein. If this Agreement is terminated as a result of
Programmer’s default in the performance of its obligations, all amounts accrued or payable to Licensee up to the date of
termination which have not been paid shall become due and payable within ten (10) business days.

 

     

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		7.2.	Termination for Change in Governmental Rules or Policies

 

The parties believe that
the terms of this Agreement meet all of the requirements of current federal governmental policy, including that of the FCC, for
time brokerage or local marketing agreements, and agree that they shall negotiate in good faith to meet any governmental concern
with respect to this Agreement. If the parties cannot agree within a reasonable time to modification(s) deemed necessary by either
party to meet such governmental requirements, either party may terminate this Agreement upon written notice to the other.

 

		7.3.	Certain Matters Upon Termination

 

		7.3.1.	No Obligation to Provide Time

 

If this Agreement is
terminated for any reason other than the occurrence of the consummation of the assignment of the licenses and authorizations issued
by the FCC for the Station, Licensee shall be under no further obligation to make available to Programmer any broadcast time or
broadcast transmission facilities, and Programmer shall have no further obligations to make any payments to Licensee under Schedule
1.3 attributable to any period after the effective date of termination. Programmer shall be solely responsible for all of its
liabilities, debts and obligations to third parties incident to Programmer’s purchase of broadcast time under this Agreement
and Programmer’s production and provision of the Programming, including, accounts payable provided that Licensee shall be
responsible for Licensee’s federal, state, and local tax liabilities associated with Programmer’s payments to Licensee
under Schedule 1.3. So long as this Agreement is not terminated as a result of Programmer’s breach or default, Licensee
agrees that it will cooperate reasonably with Programmer to discharge in exchange for reasonable compensation any remaining obligations
of Programmer in the form of air time following the date of termination.

 

		7.3.2.	Return of Equipment

 

Programmer shall return
to Licensee any of Licensee’s equipment or property used by Programmer, its employees or agents, in substantially the same
condition as such equipment existed on the Commencement Date, ordinary wear and tear excepted. The lease for the Main Studio shall
terminate but, as provided elsewhere in this Agreement, Licensee shall be provided at least 60-days to remove its equipment and
to locate and move to a new FCC compliant main studio.

 

		7.4.	Liability for Prior Conduct

 

No expiration or termination
of this Agreement shall terminate the obligation of each party to indemnify the other for claims of third parties under Section
5 of this Agreement or limit or impair any party’s rights to receive or make payments due and owing in accordance with
this Agreement on or before the date of such termination.

 

     

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		7.5.	Attorneys’ Fees and Costs

 

In the event any action
or proceeding is commenced by either party to enforce the provisions of this Agreement or to seek remedies for a breach or wrongful
termination of this Agreement, the prevailing party in such an action or proceeding shall be entitled to the award of its reasonable
attorneys fees and costs incurred in and relating to such an action or proceeding.

 

		7.6.	Liquidated Damages

 

If
this Agreement is terminated by Licensee’s giving of valid written notice to Programmer pursuant to Section 7.1, Programmer
agrees that Licensee shall be entitled to receive, as liquidated damages and not as a penalty, an amount equal to Twenty Five Thousand
Dollars ($25,000). THE DELIVERY OF THE LIQUIDATED DAMAGES AMOUNT TO SELLER SHALL BE CONSIDERED LIQUIDATED DAMAGES AND NOT A PENALTY,
AND SHALL BE THE RECIPIENT’S SOLE REMEDY AT LAW OR IN EQUITY FOR THE TERMINATION OF THIS AGREEMENT AS A RESULT OF PROGRAMMER’S
BREACH. PROGRAMMER AND LICENSEE EACH ACKNOWLEDGE AND AGREE THAT THIS LIQUIDATED DAMAGE AMOUNT IS REASONABLE IN LIGHT OF THE ANTICIPATED
HARM WHICH WILL BE CAUSED BY TERMINATION OF THIS AGREEMENT AS A RESULT OF PROGRAMMER’S BREACH OF THIS AGREEMENT, THE DIFFICULTY
OF PROOF OF LOSS, THE INCONVENIENCE AND NON-FEASIBILITY OF OTHERWISE OBTAINING AN ADEQUATE REMEDY, AND THE VALUE OF THE TRANSACTIONS
TO BE CONSUMMATED HEREUNDER.

 

		7.8	Limitation on Damage

 

Notwithstanding anything
here to the contrary, in the event of Licensee’s default of this Agreement and its failure to cure such default as provided
in Section 6.2 hereof, Programmer shall be entitled to seek, as its sole remedy, specific performance of this Agreement
or, in lieu thereof, its actual damages, but not both. Neither Licensee nor Programmer shall, under any circumstances, be liable
for any special, exemplary, punitive, incidental, or consequential damages regardless of the cause.

 

		8.	Representations And Warranties

 

		8.1.	Representations and Warranties of Licensee

 

Licensee hereby represents
and warrants that:

 

		8.1.1.	Organization and Standing

 

Licensee is a Maryland
limited liability company and has all necessary right, power and authority to own the Station’s assets, to lease all leased
assets and to utilize all of the Station’s assets and to carry on the business of the Station.

 

     

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		8.1.2.	Binding Obligation

 

Licensee has all necessary
power to enter into and perform this Agreement and the transactions contemplated hereby. This Agreement constitutes a valid and
binding obligation of Licensee, enforceable in accordance with its terms.

 

		8.1.3.	Absence of Conflicting Agreements or Required Consents

 

The execution, delivery
and performance of this Agreement by Licensee (a) do not and will not require the consent or approval of or any filing with any
third party or governmental authority, other than the FCC; (b) do not and will not violate any applicable law, judgment, order,
injunction, decree, rule, regulation or ruling of any governmental authority; and (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 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 Licensee or any of its assets is now subject; and (d) do not and will not violate any provision of Licensee’s
organizational documents.

 

		8.2.	Representations and Warranties of Programmer

 

Programmer hereby represents
and warrants that:

 

		8.2.1.	Organization and Standing

 

Programmer is a corporation
duly formed, validly existing and in good standing under the laws of the State of Virginia and has all necessary power and authority
to perform its obligations hereunder.

 

		8.2.2.	Authorization and Binding Obligation

 

Programmer has all
necessary power and authority to enter into and perform this Agreement and the transactions contemplated hereby, and Programmer’s
execution, delivery and performance of this Agreement has been duly and validly authorized by all necessary action on its part.
This Agreement has been duly executed and delivered by Programmer and constitutes its valid and binding obligation enforceable
against Programmer in accordance with its terms.

 

		8.2.3.	Absence of Conflicting Agreements or Required Consents

 

The execution, delivery
and performance of this Agreement by Programmer: (a) do not and will not violate any provision of Programmer’s organizational
documents; (b) do not and will not require the consent of any third party or governmental authority other than the FCC; (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 Programmer is now subject.

 

     

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		8.2.4	Qualification.

 

Programmer is legally
and financially qualified to provide the Programming to the Station as contemplated herein without waiver of any FCC rule or policy.

 

		9.	Certifications

 

		9.1.	Programmer’s Certification

 

Programmer hereby certifies
that this Agreement complies with the provisions of Sections 73.3555 (a) and (d) of the FCC rules.

 

		9.2.	Licensee’s Certification

 

Licensee hereby certifies
that it shall maintain ultimate control over the Station’s facilities, including but not limited to control over the finances
with respect to the operation of the Station, over its personnel operating the Station, and over the programming to be broadcast
by the Station.

 

		10.	Casualty and Insurance.

 

Upon
the occurrence of any casualty loss, damage or destruction material to the operation of the Station, Licensee shall use its reasonable
efforts to promptly commence and thereafter to diligently proceed to repair or replace any such lost, damaged or destroyed property,
at its expense. During the Term hereof, Licensee shall use reasonable commercial efforts to maintain insurance upon all of the
tangible personal property of the Station in such amounts and of such kind to cover the full amount of any loss with respect to
such property and with respect to the operation of the Station, with insurers of substantially the same or better financial condition
as are currently insuring that property.

 

		11.	Miscellaneous

 

		11.1.	Modification and Waiver

 

No modification or waiver
of any provision of this Agreement shall be effective unless made in writing and signed by the party adversely affected, and any
such waiver and consent shall be effective only in the specific instance and for the purpose for which such consent was given.

 

     

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		11.2.	No Waiver; Remedies Cumulative

 

No failure or delay on
the part of Licensee or Programmer in exercising any right or power under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any such 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. The rights and remedies
of the parties to this Agreement are cumulative and are not exclusive of any right or remedies which either may otherwise have.

 

		11.3.	Governing Law

 

The construction and
performance of this Agreement shall be governed by the laws of the State of Maryland without regard to its principles of conflict
of law.

 

		11.4.	No Partnership or Joint Venture

 

This Agreement is not
intended to be and shall not be construed as a partnership or joint venture agreement between the parties. Except as otherwise
specifically provided in this Agreement, no party to this Agreement shall be authorized to act as agent of or otherwise represent
any other party to this Agreement.

 

		11.5.	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 Programmer
nor Licensee may assign its rights under this Agreement without the prior written consent of the other parties hereto provided
that Programmer may, without the consent of Licensee, (i) assign its rights and obligations hereunder in whole or in part to any
entity under common control with Programmer provided that the assignee agrees, in writing, to assume and be bound by Programmer’s
obligations hereunder. Upon any such assignment by Programmer of its rights hereunder, references to “Programmer”
shall include such assignee, provided, however, that no such assignment shall relieve Programmer of any obligation hereunder.

 

		11.6.	Headings

 

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

 

		11.7.	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.

 

		11.8.	Notices

 

Any notice, report, demand,
waiver or consent required or permitted hereunder shall be in writing and shall be given by hand delivery, by prepaid registered
or certified mail, with return receipt requested, or by an established national overnight courier providing proof of delivery for
next business day delivery addressed as follows:

 

     

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	 	If to Licensee:	AM 570, LLC
	 	 	855 Aviation Drive
	 	 	Camarillo, CA  93010
	 	 	Attn:  Brian J. Counsil
	 	 	Facsimile:  (805) 456-7869
	 	 	 
	 	If to Programmer:	Salem Media of Virginia, Inc.
	 	 	4880 Santa Rosa Road
	 	 	Camarillo, California 93012
	 	 	Attn:  Christopher J. Henderson
	 	 	Facsimile:  (805) 384-4505

 

The date of any such
notice and service thereof shall be deemed to be the day of delivery if hand delivered or delivered by overnight courier or the
day of delivery as indicated on the return receipt if sent by mail. Either party may change its address for the purpose of notice
by giving notice of such change in accordance with the provisions of this Section 11.8.

 

		11.9.	Duty to Consult

 

Each party agrees that
it will use its best efforts not to take any action that will unreasonably interfere, threaten or frustrate the other party’s
purposes or business activities, and that it will keep the other party informed of, and coordinate with the other party regarding,
any of its activities that may have a material effect on such party.

 

		11.10.	Further Assurances

 

From time to time after
the date of execution hereof, the parties shall take such further action and execute such further documents, assurances and certificates
as either party reasonably may request of the other to effectuate the purposes of this Agreement.

 

		11.11.	Severability

 

In the event that any
of the provisions of this Agreement shall be held unenforceable, then the remaining provisions shall be construed as if such unenforceable
provisions were not contained herein. Any provision of this Agreement which is unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof, and any
such unenforceability in any jurisdiction shall not invalidate or render unenforceable such provisions in any other jurisdiction.
To the extent permitted by applicable law, the parties hereto hereby waive any provision of law now or hereafter in effect which
renders any provision hereof unenforceable in any respect.

 

     

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		11.12.	Counterparts

 

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

 

		11.13.	Waiver of Trial by Jury

 

Programmer
and Licensee waive all rights to a trial by jury in any action, counterclaim, or proceeding based upon, or related to, the subject
matter of this Agreement.  This waiver applies to all claims against all parties to such actions and proceedings, including
parties who are not parties to this Agreement.  This waiver is knowingly, intentionally, and voluntarily made by Programmer
and Programmer acknowledges that neither Licensee, nor any person acting on behalf of Licensee, had made any representations of
fact to induce this waiver of trial by jury or in any way to modify or nullify its effect.  Programmer further acknowledges
that it has been represented (or has had the opportunity to be represented) in the signing of this agreement and in the making
of this waiver by independent legal counsel, selected of its own free will, and that it had the opportunity to discuss this waiver
with counsel.  Programmer further acknowledges that it has read and understands the meaning and ramifications of this waiver
provision.

 

		11.14.	Legal and Accounting Fees

 

Except
as provided in Sections 5.1 and 7.5 hereof, Programmer and Licensee each shall bear its own legal and accounting fees incurred
relating to this Agreement and the performance of its obligations hereunder.

 

     

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IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be signed by their duly authorized corporate officers and their respective corporate
seals thereunto affixed on this the day and date first written above.

 

	 	AM 570, LLC
	 	 	 
	 	By:	/s/Brian J. Counsil
	 	Name:	Brian J. Counsil
	 	Title:  	Chief Financial Officer
	 	 	 
	 	SALEM MEDIA OF VIRGINIA, INC.
	 	 	 
	 	By:	/s/Christopher J. Henderson
	 	Name:	Christopher J. Henderson
	 	Title:	Senior Vice President

 

SIGNATURE PAGE TO

LOCAL MARKETING AGREEMENT

 

     

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SCHEDULE 1.3

 

COMPENSATION

 

For and during the Term hereof, Programmer
shall reimburse Licensee for all reasonable out-of-pocket costs and expenses associated with or arising out of the current operation
of the Station (“Station Expenses”), including (without limitation) the cost to maintain the Station’s transmitter
and antennas, premiums for insurance, the salaries, benefits, taxes, insurance and similar expenses for the two FCC-required Licensee
employees, FCC regulatory and other fees, and the cost and expense of all rent, utilities, telephones (including T-1 or other transmission
lines between the Station’s studio and transmitter sites) and music license fees for the operation of the Station. Notwithstanding
the preceding sentence, “Station Expenses” shall not include (i) any inter-company charges; (ii) any capital expenditures
for the Station other than those necessary to maintain or repair the Station’s equipment and current transmitter site; or
(iii) any expenses due to casualty pursuant to Section 10. All Station Expenses shall be due and payable not later than thirty
(30) days after Programmer’s receipt of written itemizations of said expenses. All ongoing Station Expenses to be paid by
Programmer shall be prorated as of the Commencement Date.

 

     

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SCHEDULE 2.4.1

 

PROGRAM STANDARDS

 

Programmer agrees to
cooperate with Licensee in the broadcasting of programs in a manner consistent with the standards of Licensee, as set forth below:

 

1.       Political
Programming and Procedures. At least 90 days before the start of any primary or regular election campaign, Programmer will coordinate
with Licensee’s management employee the rates Programmer will charge for time to be sold to candidates for public office
and/or their supporters to make certain that the rates charged conform to all applicable laws and the Station’s policy. Throughout
a campaign, Programmer will comply with all applicable laws and rules concerning political broadcasts and will promptly notify
Licensee’s management employee of any disputes concerning either the treatment of or rate charged a candidate or supporter.

 

2.       Required
Announcements. Programmer shall broadcast an announcement in a form satisfactory to Licensee at the beginning of each hour to identify
the Station, and any other announcement that may be required by law, regulation, or the Station’s policy.

 

3.       Commercial
Record Keeping. Programmer shall maintain such records of the receipt of, and provide such disclosure to Licensee of, any consideration,
whether in money, goods, services, or otherwise, which is paid or promised to be paid, either directly or indirectly, by any person
or company for the presentation of any programming over the Station as are required by Sections 317 and 507 of the Communications
Act and the rules and regulations of the FCC.

 

4.       No
Illegal Announcements. No announcements or promotion prohibited by federal or state law or regulation of any lottery, game or contest
shall be made over the Station. Licensee reserves the right to reject any game, contest or promotion which, in its reasonable judgment,
it deems violative of any applicable FCC rule or federal, state or local law or regulation.

 

5.       Indecency,
Hoaxes. No programming violative of applicable laws and rules concerning indecency or hoaxes will be broadcast over the Station.

 

6.       Controversial
Issues. Any broadcast over the Station concerning controversial issues of public importance shall comply with FCC rules and policies.

 

7.       Licensee’s
Discretion Paramount. In accordance with Licensee’s responsibility under the Communications Act of 1934, as amended, and
the rules and regulations of the FCC, Licensee reserves the right to reject or terminate any advertising proposed to be presented
or being presented over the Station which is in conflict with the Station’s policy or which, in the good faith, reasonable
judgment of Licensee or its management employee would be contrary to the Act or the Rules. Licensee may waive any of the foregoing
regulations in specific instances if, in its reasonable opinion, good broadcasting in the public interest will be served thereby.Exhibit 10.3

 

ASSET PURCHASE AGREEMENT

(WSPZ(AM), Bethesda, MD)

 

This Asset Purchase
Agreement (this “Agreement”) is dated as of September 15, 2017, by and between AM 570, LLC, a Maryland limited liability
company (“Seller”), and Salem Media of Virginia, Inc., a Virginia corporation (“Buyer”).

 

RECITALS:

 

1.           Seller
owns and operates radio station WSPZ(AM), FCC Facility ID. No. 11846, licensed to Bethesda, MD (the "Station"), and holds
the licenses and authorizations issued by the FCC for the operation of the Station.

 

2.           Seller
is the tenant under a lease to use on a nonexclusive basis, as the transmitter site for the Station, a 58-acre parcel of real property
located at 16925 Black Rock Road, Germantown, Maryland 20876 in Montgomery County, Maryland, (the “Real Property) including
four (4) towers thereon (referred herein as the “Tower Lease Agreement” and described on Schedule 3.9).

 

3.           Concurrently
with this Agreement, Seller and Buyer are entering into a Local Marketing Agreement (the “LMA”) to allow Buyer to program
the Station until such time as the transaction contemplated hereby can be consummated.

 

4.           Buyer
desires to acquire certain assets of the Station, and Seller is willing to convey such assets to Buyer.

 

5.           The
acquisition of the Station is subject to prior approval of the FCC.

 

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

 

ARTICLE 1

 

TERMINOLOGY

 

1.1         Act.
The Communications Act of 1934, as amended.

 

1.2         Adjustment
Amount. As provided in Section 2.7, the amount by which a party’s account is to be credited or charged, as
reflected on the Adjustment List(s).

 

1.3         Adjustment
List. As provided in Section 2.7, an itemized list(s) of all sums to be credited or charged against the account
of Buyer or Seller, as applicable, with a brief explanation in reasonable detail of the credits or charges, consistent with the
allocation principle set forth in Section 2.7(a) and (b).

 

     

     

    

 

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1.4         Assumed
Obligations. Such term shall have the meaning defined in Section 2.3.

 

1.5         Business
Day. Any calendar day, excluding Saturdays and Sundays, on which federally chartered banks in the District of Columbia
are regularly open for business.

 

1.6         Buyer’s
Threshold Limitation. As provided in Section 9.3 (b), the threshold dollar amount for the aggregate of claims, liabilities,
damages, losses, costs and expenses that must be incurred by Buyer for a breach of Seller’s representations or warranties
hereunder before Seller shall be obligated to indemnify Buyer. The Buyer’s Threshold Limitation shall be Twenty-Five Thousand
Dollars ($25,000) in the aggregate.

 

1.7         Closing.
The closing with respect to the transactions contemplated by this Agreement as provided in Article VIII.

 

1.8         Closing
Date. The date determined as the Closing Date as provided in Section 8.1.

 

1.9         Documents.
This Agreement and all Schedules hereto, and each other agreement, certificate, or instrument delivered pursuant to or in connection
with this Agreement, including amendments thereto that are expressly permitted under the terms of this Agreement.

 

1.10       Earnest
Money. The amount of Thirty Thousand Dollars ($30,000).

 

1.11       Environmental
Assessment. Such term shall have the meaning defined in Section 5.10.

 

1.12       Environmental
Laws. The Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act,
the Clean Water Act, the Clean Air Act and the Toxic Substances Control Act, the Federal Insecticide, Fungicide and Rodenticide
Act, the Emergency Planning and Community Right-to-Know Act, the Safe Drinking Water Act, each as amended, and any other applicable
federal, state and local laws, statutes, rules or regulations concerning or relating to the treating, producing, handling, storing,
releasing, spilling, leaking, pumping, pouring, emitting or dumping of Hazardous Materials, or the pollution or protection of human
health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata).

 

1.13       Escrow
Agent. Fletcher, Heald & Hildreth, PLC.

 

1.14       Escrow
Agreement. The Escrow Agreement which Buyer, Seller and Escrow Agent have entered into concurrently with the execution
of this Agreement relating to the deposit, holding, investment and disbursement of the Earnest Money.

 

1.15       Excluded
Assets. Such term shall have the meaning defined in Section 2.2.

 

     

     

    

 

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1.16       FCC.
Federal Communications Commission.

 

1.17       FCC
Licenses. The licenses, permits and authorizations (and any renewals, extensions, amendments or modifications thereof)
granted by the FCC for the operation of the Station, including without limitation those listed on Schedule 3.8, and including
without limitation all pending assignable licenses, permits, and authorizations of the FCC to the extent they pertain to the operation
of the Station.

 

1.18       FCC
Order. An action, order or decision of the FCC granting its consent to the assignment of the FCC Licenses to Buyer without
any Material Adverse Conditions other than those of general applicability.

 

1.19       Final
Action. An action of the FCC that has not been reversed, stayed, enjoined, set aside, annulled or suspended; with respect
to which no timely petition for reconsideration or administrative or judicial appeal or sua sponte action of the FCC with
comparable effect is pending and as to which the time for filing any such petition or appeal (administrative or judicial) or for
the taking of any such sua sponte action of the FCC has expired.

 

1.20       Hazardous
Materials. Toxic materials, hazardous wastes, hazardous substances, pollutants or contaminants, asbestos or asbestos-related
products, polychlorinated biphenyls (“PCBs”), petroleum, crude oil or any fraction or distillate thereof in excess
of legally-defined permissible limits (as such terms are defined in any applicable federal, state or local laws, ordinances, rules
and regulations, and including any other terms which are or may be used in any applicable Environmental Laws to define prohibited
or regulated substances).

 

1.21       Indemnified
Party. Any party described in Section 9.3 or Section 9.4 against which any claim or liability may be asserted
by a third party which would give rise to a claim for indemnification under the provisions of this Agreement by such party.

 

1.22       Indemnifying
Party. The party to this Agreement (not the Indemnified Party) that, in the event of a claim or liability asserted by a
third party against the Indemnified Party which would give rise to a claim for indemnification under the provisions of this Agreement,
is obligated to indemnify and hold harmless the Indemnified Party to the extent expressly provided in this Agreement.

 

1.23       Lien.
Any mortgage, deed of trust, pledge, hypothecation, security interest, encumbrance, lien, lease or charge of any kind, whether
voluntarily incurred or arising by operation of law or otherwise, affecting any Sale Assets, including any written or oral agreement
to give or grant any of the foregoing, any conditional sale or other title retention agreement, and the filing of or agreement
to give any financing statement with respect to any of the Sale Assets under the Uniform Commercial Code as adopted in the state
of Delaware.

 

     

     

    

 

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1.24       Material
Adverse Condition. A condition, event or circumstance which would materially restrict, limit, increase the cost or burden
of or otherwise materially adversely affect or materially impair the right of Buyer to the ownership, use, control, enjoyment or
operation of the Station or the proceeds therefrom; provided, however, that any condition which requires that the Station be operated
in accordance with a condition similar to those contained in the present FCC Licenses issued for operation of the Station shall
not be deemed a Material Adverse Condition.

 

1.25       OSHA
Laws. The Occupational Safety and Health Act of 1970, as amended, and all other federal, state or local laws or ordinances,
including orders, rules and regulations thereunder, regulating or otherwise affecting health and safety of the workplace.

 

1.26       Permitted
Lien. For purposes hereof, "Permitted Lien” shall mean (i) easements, restrictions, and other similar matters
which will not materially adversely affect the use of the Real Property in the ordinary course of business or do not in any material
respect detract from the value of the Real Property; (ii) liens for taxes not due and payable or that are being contested in good
faith by appropriate proceedings; (iii) mechanics’, materialmen’s, carriers’, warehousemen's, landlords' or other
similar liens in the ordinary course of business for sums not yet due or which are being contested in good faith by appropriate
proceedings; (iv) liens or mortgages that will be released at Closing; (v) zoning ordinances and regulations, including statutes
and ordinances relating to the liens of streets and to other municipal improvements, which will not materially adversely affect
the use of the Real Property in the ordinary course of business, provided that any of the foregoing alone or in the aggregate do
not materially impair the value or materially interfere with the use of any asset or property of the Seller material to the operation
of its business as it has been and is now conducted; and/or (vi) the Assumed Obligations.

 

1.27       Person.
Any individual, corporation, limited liability company, partnership, joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivisions thereof.

 

1.28       Purchase
Price. The consideration to be paid by Buyer to Seller for purchase of the Sale Assets is an amount equal to Six Hundred
Twenty Thousand Dollars ($620,000) payable pursuant to the terms of Section 2.5 and subject to adjustments pursuant to Section
2.7.

 

1.29       Real
Property. Such term shall have the meaning defined in Recital 2.

 

1.30       Rules
and Regulations. The rules of the FCC as set forth in Volume 47 of the Code of Federal Regulations, as well as such other
policies of the FCC, whether contained in the Code of Federal Regulations or not, that apply to the Station.

 

1.31       Sale
Assets. All of the tangible and intangible assets to be transferred by Seller to Buyer as set forth in Section 2.1.

 

     

     

    

 

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1.32       Seller’s
Threshold Limitation. As provided in Section 9.4 (b), the threshold dollar amount for the aggregate of claims,
liabilities, damages, losses, costs and expenses that must be incurred by Seller for a breach of Buyer’s representations
or warranties hereunder before Buyer shall be obligated to indemnify Seller. The Seller’s Threshold Limitation shall be Twenty-Five
Thousand Dollars ($25,000) in the aggregate.

 

1.33       Station
Agreements. The agreements, commitments, contracts, leases and other items listed in Schedule 3.9.

 

1.34       Tangible
Personal Property. The personal property described in Section 2.1(a) and more fully described in Schedule 3.6.

 

ARTICLE II

 

PURCHASE AND SALE

 

2.1         Sale
Assets. On the Closing Date, Seller will sell, transfer, assign and convey to Buyer, and Buyer will purchase from Seller,
free and clear of all Liens, except Permitted Liens, all of Seller’s right, title and interest, legal and equitable, in and
to the following assets to the extent such assets are used or held for use in the operation of the Station:

 

(a)         Tangible
Personal Property. All equipment, parts, supplies, fixtures, and other tangible personal property now or hereinafter owned
by Seller and located at the Real Property and listed on Schedule 3.6, in each case as used or held for use exclusively
in connection with the operation of the Station, together with such modifications, replacements, improvements and additional items,
made or acquired between the date hereof and the Closing Date;

 

(b)         Tower
Lease. All right, title and interest of Seller in and to the Tower Lease Agreement described in Schedule 3.9;

 

(c)         Licenses
and Permits. The FCC Licenses and all other assignable or transferable governmental permits, licenses and authorizations
(and any renewals, extensions, amendments or modifications thereof) now held by Seller or hereafter obtained by Seller between
the date hereof and the Closing Date, to the extent such other permits, licenses and authorizations are used or held for use exclusively
in the operation of the Station;

 

(d)         Station
Agreements. The agreements which are listed on Schedule 3.9, as well as any renewals, extensions, amendments or
modifications of those agreements which are made in the ordinary course of Seller’s operation of the Station and in accordance
with the terms and provisions of this Agreement;

 

     

     

    

 

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(e)         Records.
Copies of all of the books, records, accounts, files, logs, ledgers and reports of Station engineers exclusively pertaining to
or used in the operation of the Station (other than corporate records), including but not limited to the Station’s public
inspection file; and

 

(f)         Intangible
Assets. The WSPZ call letters.

 

2.2         Excluded
Assets. Notwithstanding any provision of this Agreement to the contrary, the Sale Assets shall not include, and Seller
shall not transfer, convey or assign to Buyer (but shall retain all of its right, title and interest in and to), all of the following
assets owned or held by Seller ("Excluded Assets"):

 

(a)         Any
and all cash, cash equivalents, cash deposits to secure contract obligations, all inter-company receivables from any affiliate
of Seller and all other bank deposits and securities held by Seller in respect of the Station;

 

(b)         Subject
to the LMA, Seller’s interests in the Station’s accounts receivable and any other rights to payment of cash consideration
for goods or services sold or provided prior to the Effective Time (as defined in Section 2.7) or otherwise arising during
or attributable to any period prior to the Effective Time (the “A/R”);

 

(c)         Any
and all claims of Seller with respect to the Sale Assets or the Station arising during or attributable to the period prior to the
Closing including, without limitation, claims for tax refunds and refunds of fees paid to the FCC;

 

(d)         All
deposits and prepaid expenses (except to the extent Seller receive a credit therefor under Section 2.7, in which event the
prepaid expense shall be included as part of the Sale Assets);

 

(e)         All
contracts of insurance, all coverages and proceeds thereunder and all rights in connection therewith, including without limitation
rights arising from any refunds due with respect to insurance premium payments to the extent related to such insurance policies;

 

(f)         All
employee benefit plans and the assets thereof and all employment contracts;

 

(g)         All
contracts that are terminated in accordance with the terms and provisions of this Agreement or have expired prior to the Closing
Date in the ordinary course of business, and all loans and loan agreements;

 

(h)         All
tangible personal property disposed of or consumed between the date hereof and the Closing Date in accordance with the terms and
provisions of this Agreement and in the ordinary course of business;

 

     

     

    

 

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(i)          Seller’s
corporate and trade names not exclusive to the operation of the Station (including the name “AM 570, LLC”), charter
documents, and books and records relating to the organization, existence or ownership of Seller, duplicate copies of the records
of the Station, and all records not relating to the operation of the Station;

 

(j)          All
commitments, contracts and agreements not specifically assumed by Buyer pursuant to Section 2.1(d), above, including without
limitation all agreements by Seller for the sale of advertising time on the Station;

 

(k)         Seller’s
right, title and interest in the Station’s studio site, and all tangible assets owned or leased by Seller and used or useful
in the operation of Seller’s broadcast studio, subject to the terms of the LMA and the studio sublease between Buyer and
Seller;

 

(l)          All
assets owned or leased by Seller and used or held for use in the operation of Seller’s or its affiliates’ other radio
stations or other businesses, including without limitation computers and other similar assets and any other operating systems and
related assets that are used in the operation of multiple stations or other business units; and

 

(m)        Seller’s
rights in and to the trademarks, trade names, service marks, internet domain names, copyrights, programs and programming material,
jingles, slogans, logos, and other intangible property which are used or held for use in the operation of the Station, along with
programming information and studies, advertising studies, marketing and demographic data, sales correspondence, lists of advertisers,
and credit and sales reports.

 

2.3         Assumption
of Liabilities.

 

(a)         At
the Closing, Buyer shall assume and agree to perform, without duplication of Seller’s performance, the following liabilities
and obligations of Seller (the "Assumed Obligations"):

 

(i)       Current
liabilities of Seller for which Buyer receives a credit pursuant to Section 2.7, but not in excess of the amount of such
credit; and

 

(ii)       Liabilities
and obligations arising under the Station Agreements assumed by and transferred to Buyer in accordance with this Agreement, but
only to the extent such liabilities and obligations relate to the Sale Assets and are attributable to the period of time from or
after the Closing.

 

(b)         Except
for the Assumed Obligations, Buyer shall not assume or in any manner be liable for any debts, liens, charges, claims, encumbrances,
duties, responsibilities, obligations or liabilities of Seller of any kind or nature, whether express or implied, known or unknown,
contingent or absolute, including, without limitation, any liabilities to or in connection with Seller’s employees whether
arising in connection with the transaction contemplated hereunder or otherwise.

 

     

     

    

 

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2.4         Earnest
Money.

 

(a)         Within
three (3) business days of the date of execution of this Agreement, Buyer shall deposit with Escrow Agent the Earnest Money by
wire transfer of immediately available funds. The Escrow Agent shall hold the Earnest Money under the terms of the Escrow Agreement
in trust for the benefit of the parties hereto.

 

(b)         If
Closing does occur, the Earnest Money shall be applied to payment of the Purchase Price at Closing as provided in Section 2.5,
and any interest accrued thereon shall be disbursed to Buyer. If this Agreement is terminated by Seller pursuant to Section
10.1(a) for a breach or default hereunder by Buyer, the Earnest Money shall be disbursed to Seller. If this Agreement is otherwise
terminated pursuant to its terms, the Earnest Money shall be disbursed to Buyer. The parties shall each instruct the Escrow Agent
to disburse the Earnest Money to the party entitled thereto and shall not, by any act or omission, delay or prevent any such disbursement
unless contested by a party in good faith in writing within five (5) business days of a disbursement request, in which event the
Earnest Money shall remain with the Escrow Agent until the parties’ dispute is resolved. Any failure by Buyer to deposit
the Earnest Money with Escrow Agent within three (3) business days of the date hereof constitutes a material default as to which
the cure period under Section 10.1 does not apply, entitling Seller to immediately terminate this Agreement.

 

2.5         Payments
of Purchase Price.

 

(a)         At
the Closing, the Purchase Price, less any amount of the Earnest Money paid to Seller, shall be paid to Seller by wire transfer
of immediately available funds.

 

(b)         The
Purchase Price shall be adjusted by the Adjustment Amount in accordance with Section 2.7 and Article XI (if applicable).

 

2.6         Allocation
of the Purchase Price. Buyer and Seller shall agree to an allocation of the Purchase Price as reasonably established by
Buyer and Seller following receipt by Buyer of an independent appraisal of the Sale Assets, which appraisal shall be paid for by
Buyer. Buyer and Seller shall use such allocation for all reporting purposes in connection with federal, state and local income
and, to the extent permitted under applicable law, franchise taxes. Buyer and Seller agree to report such allocation to the Internal
Revenue Service in the form required by Treasury Regulation § 1.1060-1T.

  

     

     

    

 

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2.7         Adjustment
of Purchase Price.

 

(a)         Except
as otherwise set forth in the LMA, all operating income and operating expenses of the Station that are included in the Station
Assets shall be adjusted and allocated between Seller and Buyer, and an adjustment in the Purchase Price shall be made as provided
in this Section, to the extent necessary to reflect the principle that all such income and expenses attributable to the operation
of the Station on or before 11:59 p.m. on the day immediately preceding the Closing Date (the “Effective Time”) shall
be for the account of Seller, and all income and expenses attributable to the operation of the Station after the Effective Time
shall be for the account of Buyer. Such prorations shall include without limitation all ad valorem, real estate and other property
taxes (except transfer taxes as provided by Section 14.3(b)), FCC regulatory fees, music and other license fees, utility expenses,
rent and other amounts under Station Agreements and similar prepaid and deferred items. Seller shall receive a credit for all of
the Station’s deposits and prepaid expenses. There shall be no proration or adjustment for any imbalance in the value of
rights and obligations under trade, barter or similar agreements for the sale of time for goods or services.

 

(b)         To
the extent not inconsistent with the express provisions of this Agreement, the allocations made pursuant to this Section 2.7
shall be made in accordance with generally accepted accounting principles.

 

(c)         Prorations
and adjustments shall be made at Closing to the extent practicable. For purposes of making the final adjustments pursuant to this
Section, Buyer shall prepare and deliver an initial Adjustment List to Seller within forty five (45) days following the Closing
Date, or such later date as shall be mutually agreed to by Seller and Buyer. The Adjustment List(s) shall set forth the Adjustment
Amount. If the Adjustment Amount is a credit to the account of Buyer, Seller shall pay such amount to Buyer within five (5) Business
Days of receiving the Adjustment List(s) if both parties agree on the amount, and if the Adjustment Amount is a charge to the account
of Buyer, Buyer shall pay such amount to Seller within five (5) Business Days of delivering the Adjustment List(s) to Seller if
both parties agree on the amount. In the event Seller disagrees with the Adjustment Amount determined by Buyer or with any other
matter arising out of this subsection, and Buyer and Seller cannot within sixty (60) days resolve the disagreement themselves,
the parties will refer the disagreement to a firm of independent certified public accountants, mutually acceptable to Seller and
Buyer, whose decision shall be final and binding on the parties. The fees and expenses of such accountants shall be paid by the
party who does not prevail on the disputed matters decided by the accountants.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF
SELLER

 

Seller hereby represents and warrants to
Buyer as follows:

 

3.1         Organization
and Good Standing. Seller is a limited liability company, validly existing and in good standing under the laws of the State
of Maryland. Seller is authorized to conduct business in the State of Maryland. Seller has all requisite power to own, operate
and lease its properties and carry on its business as it is now being conducted and as the same will be conducted until the Closing.

 

     

     

    

 

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3.2         Authorization
and Binding Effect of Documents. Seller’s execution and delivery of, and the performance of its obligations under,
this Agreement and each of the other Documents, and the consummation by Seller of the transactions contemplated hereby and thereby,
have been duly authorized and approved by all necessary action on the part of Seller, and no other proceedings on the part of Seller
are necessary to authorize and approve this Agreement. Seller has the power and authority to execute, deliver and perform its obligations
under this Agreement and each of the other Documents and to consummate the transactions hereby and thereby contemplated. This Agreement
and each of the other Documents have been, or at or prior to the Closing will be, duly executed by Seller. The Documents, when
executed and delivered by the parties hereto, will constitute legal and valid obligations of Seller enforceable against it in accordance
with their terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the
enforcement of creditors' rights or remedies generally, and except as may be limited by general principles of equity.

 

3.3         Absence
of Conflicts. The execution and delivery of, and the performance of its obligations under, this Agreement and each of the
other Documents by Seller, and the consummation of the transactions contemplated hereby and thereby:

 

(a)         do
not in any material respect (with or without the giving of notice or the passage of time or both) violate, or result in the creation
of any Lien other than a Permitted Lien on any of the Sale Assets under any provision of law, rule or regulation or any order,
judgment, injunction, decree or ruling applicable to Seller; and

 

(b)         do
not (with or without the giving of notice or the passage of time or both) conflict with or result in a breach or termination of,
or constitute a default or give rise to a right of termination or acceleration under the certificate of formation or limited liability
agreement of Seller or pursuant to any lease, agreement, commitment or other instrument which Seller is a party to, or bound by,
or by which any of the Sale Assets may be bound.

 

3.4         Governmental
Consents and Consents of Third Parties. Except for the FCC Order or as disclosed on Schedule 3.4, the execution
and delivery of, and the performance of Seller’s obligations under, this Agreement and each of the other Documents by Seller,
and the consummation by Seller of the transactions contemplated hereby and thereby, do not require the consent, waiver, approval,
permit, license, clearance or authorization of, or any declaration of filing with, any court or public agency or governmental body
or other authority, or the consent of any Person under any agreement, arrangement or commitment of any nature to which Seller is
a party or by which it is bound or by which the Sale Assets are bound or to which they are subject.

 

     

     

    

 

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3.5         Sale
Assets. Except for the Excluded Assets, the Sale Assets include all of the assets, properties and rights of every type
and description, real, personal and mixed, tangible and intangible, that are used in the conduct of the business of owning and
operating the Station in the manner in which that business is now conducted in all material respects, including, without limitation
all of the assets described in Section 2.1.

 

3.6         Tangible
Personal Property. Except for supplies and other incidental items which in the aggregate are not of material value, the
list of Tangible Personal Property set forth on Schedule 3.6 is a complete and correct list as of the date hereof of all
of the material items of Tangible Personal Property (other than Excluded Assets). In addition:

 

(a)         Seller
has good, marketable and valid title to all of the items of Tangible Personal Property free and clear of all Liens except Permitted
Liens, including the right to transfer same.

 

(b)         The
material items of Tangible Personal Property are in good operating condition subject only to ordinary wear and tear.

 

(c)         To
Seller’s knowledge, the Tangible Personal Property complies in all material respects with applicable rules and regulations
of the FCC and the terms of the FCC Licenses except where the failure to comply would not be reasonably likely to constitute a
Material Adverse Condition on the operation of the Station.

 

3.7         Real
Property. 

 

(a)         Seller
has not received any written notices of uncorrected violations of the applicable housing, building, safety or fire ordinances with
respect to the Real Property.

 

(b)         Except
for the LMA and Tower Lease Agreement, Seller has not made any agreement (other than this Agreement) for the lease or sublease
of, or given any Person (other than Buyer) an option to lease or a right of first refusal to lease, all or any part of Seller’s
leasehold interest in the Real Property, and Seller has not knowingly subjected the Real Property to any liens not of record (other
than Permitted Liens).

 

(c)         
Seller has not received any written notice of condemnation or of eminent domain proceedings or negotiations for the purchase of
any of the Real Property or Seller’s interest in the Tower Lease Agreement in lieu of condemnation, and no condemnation or
eminent domain proceedings or negotiations have been commenced or, to the best of Seller's knowledge, threatened in connection
with the Real Property or the improvements located thereon or the Tower Lease Agreement that would have a material and adverse
effect on the continued utilization of the Real Property for its current use.

 

3.8         FCC
Licenses. Seller is the holder of the licenses, permits and authorizations listed on Schedule 3.8, and except as
set forth on such Schedule 3.8:

 

     

     

    

 

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(a)        the
FCC Licenses are in full force and effect, and constitute all of the FCC licenses, permits and authorizations required by the Act,
the Rules and Regulations or the FCC for, or used in, the operation of the Station in all material respects as now operated;

 

(b)        the
licenses, permits and authorizations listed on Schedule 3.8 constitute all the current licenses, permits and authorizations
issued by the FCC to Seller or pending before the FCC for or in connection with the Station;

 

(c)        there
is no condition imposed by the FCC as part of any FCC License which is neither set forth on the face thereof as issued by the FCC
nor applicable generally to stations of the type, nature, class or location of the Station;

 

(d)        the
Station is being operated in accordance with the terms and conditions of the FCC Licences applicable to it and in accordance with
the Rules and Regulations, except to the extent a failure to so comply would not constitute a Material Adverse Condition;

 

(e)        no
application, action or proceeding is pending, or, to each Seller’s knowledge is threatened, which is reasonably likely to
result in the revocation, material adverse modification, non-renewal or suspension of any of the FCC Licenses, the denial of any
pending applications, the issuance of any cease and desist order or the imposition of any material fines, forfeitures or other
material administrative actions by the FCC with respect to the Station or its operation, other than proceedings affecting the radio
broadcasting industry in general;

 

(f)        to
Seller’s knowledge, there is not before the FCC any material investigation, proceeding, notice of violation or order of forfeiture
relating to the Station;

 

(g)        Seller
has complied in all material respects with all requirements to file material reports, applications and other documents with the
FCC with respect to the Station, and all such reports, applications and documents are complete and correct in all material respects
except to the extent a failure to so comply would not constitute a Material Adverse Condition;

 

(h)        there
are no matters related to Seller which could reasonably be expected to result in the FCC's refusal to grant approval of the assignment
to Buyer of the FCC Licenses or the imposition of any Material Adverse Condition in connection with approval of such assignment;

 

(i)        to
Seller’s knowledge, there are not any unsatisfied or otherwise outstanding citations issued by the FCC with respect to the
Station or its operation; and

 

(j)        the
"Public Inspection File" of the Station is in substantial and material compliance with Section 73.3526 of the Rules and
Regulations.

 

     

     

    

 

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3.9         Station
Agreements.

 

(a)         Schedule
3.9 sets forth a list of all Station Agreements. Complete and correct copies of all Station Agreements listed on Schedule
3.9 have been delivered to Buyer, and Buyer agrees to assume all of the Station Agreements at Closing.

 

(b)         Except
as set forth in the Schedules, and with respect to all Station Agreements listed on Schedule 3.9, (i) such agreements are
legal, valid and enforceable against Seller in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors' rights generally, and subject, as to enforceability, to general principles of
equity; (ii) neither Seller, nor to Seller’s knowledge any other party thereto, is in material breach of or in material default
under any such agreements; (iii) to Seller’s knowledge, there has not occurred any event which, after the giving of notice
or the lapse of time or both, would constitute a material default under, or result in the material breach of, any such agreements
which are, individually or in the aggregate, material to the operation of the Station; and (iv) Seller holds the right to enforce
and receive the benefits under such agreements, free and clear of all Liens (other than Permitted Liens) but subject to the terms
and provision of each such agreement.

 

(c)        Schedule
3.4 indicates whether consent or approval by any counterparty to any Station Agreement is required thereunder for consummation
of the transactions contemplated hereby.

 

3.10       Litigation.
There are no actions, suits, or arbitration, administrative or other proceedings pending or, to Seller’s knowledge, threatened
against Seller with respect to the Station which would, individually or in the aggregate if adversely determined, be a Material
Adverse Condition on the Sale Assets or the operation of the Station, or which would give any third party the right to enjoin the
transactions contemplated by this Agreement. There are no existing or pending orders, judgments or decrees of any court or governmental
agency affecting the Station or any of the Sale Assets which would materially adversely affect the Station’s operations or
the Sale Assets, other than those of general applicability. Notwithstanding the disclosure of any matter herein, Buyer shall not
assume any liability for any such matter related to the operation of the Station prior to Closing.

 

3.11       Labor
Matters. 

 

(a)         Seller
is not a party to any collective bargaining agreement, and there is no collective bargaining agreement that determines the terms
and conditions of employment of any employees of Seller.

 

(b)         With
respect to the Station:

 

(i)         There
is no labor strike, dispute, slow-down or stoppage pending or, to the knowledge of Seller, threatened against the Station;

 

     

     

    

 

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(ii)         To
the knowledge of Seller, there are neither pending nor threatened, any suits, actions, administrative proceedings, union organizing
activities, arbitrations, grievances, complaints, charges, claims or other proceedings between Seller and any employees of the
Station or any union representing such employees, and there are no existing labor or employment or other controversies or grievances
involving employees of the Station which have had or are reasonably likely to constitute a Material Adverse Condition on the operation
of the Station; and

 

(iii)         Seller
is in compliance in all material respects with all laws, rules and regulations relating to the employment of labor and all employment
contractual obligations, including those relating to wages, hours, collective bargaining, affirmative action, discrimination, sexual
harassment, wrongful discharge and the withholding and payment of taxes and contributions except for such non-compliance which
individually or in the aggregate would not constitute a Material Adverse Condition on the business or financial condition of the
Station.

 

3.12       Compliance
with Law. The Sale Assets and the operation of the Station comply in all material respects with the applicable rules and
regulations of the FCC and all other applicable federal, state, local or other laws, statutes, ordinances or regulations, and any
applicable order, writ, injunction or decree of any court, commission, board, agency or other instrumentality, except to the extent
a failure to so comply would not constitute a Material Adverse Condition.

 

3.13       Environmental
Matters; OSHA.

 

(a)         With
respect to the Sale Assets, Seller is in compliance in all material respects with the provisions of Environmental Laws except where
the failure to do so would not likely result in a Material Adverse Condition.

 

(b)         Seller
has not, and to Seller’s knowledge no other Person has, caused or permitted materials to be generated, released, stored,
treated, recycled, disposed of, on, under or at the Real Property, which materials, if known to be present, would require clean
up, removal or other remedial or responsive action under Environmental Laws (other than normal office, cleaning and maintenance
supplies in reasonable quantities used and /or stored appropriately in the buildings or improvements on the Real Property).

 

(c)         Neither
Seller, nor to Seller’s knowledge, any other Person, is subject to any judgment, decree, order or citation with respect to
the Sale Assets related to or arising out of Environmental Laws, and Seller has not received written notice that it has been named
or listed as a potentially responsible party by any Person or governmental body or agency in any matter with respect to the Real
Property under Environmental Laws.

 

(d)         No portion of the Sale Assets has ever been used by Seller, nor to Seller’s knowledge by any other Person, in violation of
Environmental Laws in any material respect or as a landfill, dump site or any other use which involves the disposal or storage
of Hazardous Materials on-site except in compliance in all material respects with applicable law or in any manner which would likely
constitute a Material Adverse Condition on the Real Property or the Sale Assets.

 

     

     

    

 

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(e)         With
respect to the Sale Assets, Seller has disposed of all waste in compliance in all material respects with all Environmental Laws.

 

(f)         To
Seller’s knowledge, Seller is in material compliance with all OSHA Laws applicable to the Sale Assets.

 

(g)         With
respect to the Real Property or Sale Assets, Seller has not received written notice of any actions, causes of action, claims, investigations,
demands or notices alleging liability under or non-compliance with Environmental Laws.

 

3.14       Filing
of Tax Returns. Seller has filed all federal, state and local tax returns which are required to be filed by it with respect
to the Sale Assets, and has paid all taxes and all assessments related to the Sale Assets to the extent that such taxes and assessments
have become due, other than such returns, taxes and assessments, which the failure to file or pay would not, individually or in
the aggregate, constitute a Material Adverse Condition.

 

3.15       Broker's
or Finder's Fees. No agent, broker, investment banker or other Person or firm acting on behalf of or under the authority
of Seller or any affiliate of Seller is or will be entitled to any broker's or finder's fee or any other commission or similar
fee, directly or indirectly, in connection with the transactions contemplated by this Agreement.

 

3.16       Insurance.
Seller maintains insurance policies with respect to the Station and the Sale Assets consistent with its practices for other stations,
and will maintain such policies or arrangements until Closing.

 

3.17       Representations
Complete. None of the representations or warranties made by Seller, nor any statement made in any document or certificate
furnished by Seller pursuant to this Agreement contains or will contain at the Closing, any untrue statement of a material fact,
or omits or will omit at the Closing, to state any material fact necessary in order to make the statements contained herein or
therein, in the light of the circumstances under which they were made, not misleading.

 

     

     

    

 

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ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF
BUYER

 

Buyer represents and
warrants to Seller as follows:

 

4.1         Organization
and Good Standing. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State
of Virginia. Buyer has all requisite corporate power to own, operate and lease its properties and carry on its business as it is
now being conducted and as the same will be conducted following the Closing.

 

4.2         Authorization
and Binding Effect of Documents. Buyer's execution and delivery of, and the performance of its obligations under, this
Agreement and each of the other Documents, and the consummation by Buyer of the transactions contemplated hereby and thereby, have
been duly authorized and approved by all necessary corporate action on the part of Buyer. Buyer has the power and authority to
execute, deliver and perform its obligations under this Agreement and each of the other Documents and to consummate the transactions
hereby and thereby contemplated. This Agreement and each of the other Documents have been, or at or prior to the Closing will be,
duly executed by Buyer. The Documents, when executed and delivered by the parties hereto, will constitute the valid and legally
binding agreement of Buyer, enforceable against Buyer in accordance with its terms, except as may be limited by bankruptcy, insolvency,
or other similar laws affecting the enforcement of creditors' rights or remedies generally, and except as may be limited by general
principles of equity.

 

4.3         Absence
of Conflicts. Buyer's execution and delivery of, and the performance of its obligations under, this Agreement and each
of the other Documents and the consummation by Buyer of the transaction contemplated hereby and thereby:

 

(a)         do
not in any material respect (with or without the giving of notice or the passage of time or both) violate or result in the creation
of any claim, lien, charge or encumbrance on any of the assets or properties of Buyer under any provision of law, rule or regulation
or any order, judgment, injunction, decree or ruling applicable to Buyer; and

 

(b)         do
not (with or without the giving of notice or the passage of time or both) conflict with or result in a breach or termination of,
or constitute a default or give rise to a right of termination or acceleration under, the articles of incorporation or bylaws of
Buyer or any lease, agreement, commitment, or other instrument which Buyer is a party to, bound by, or by which any of its assets
or properties may be bound.

 

4.4         Governmental
Consents and Consents of Third Parties. Except for the FCC Order, Buyer's execution and delivery of, and the performance
of its obligations under, this Agreement and each of the other Documents and the consummation by Buyer of the transactions contemplated
hereby and thereby, do not require the consent, waiver, approval, permit, license, clearance or authorization of, or any declaration
or filing with, any court or public agency or other authority, or the consent of any Person under any agreement, arrangement or
commitment of any nature to which Buyer is a party or by which it is bound.

 

     

     

    

 

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4.5         Qualification.

 

(a)         Buyer
is legally qualified to hold the Sale Assets and to be the licensee of the Station under the Act and the Rules and Regulations.
Buyer has no knowledge after due inquiry of any facts concerning Buyer or any other Person with an attributable interest in Buyer
(as such term is defined under the Rules and Regulations) which, under present law (including the Act) and the Rules and Regulations,
would (i) disqualify Buyer from being the holder of the FCC Licenses, the owner of the Sale Assets or the operator of the Station
upon consummation of the transactions contemplated by this Agreement, or (ii) raise a substantial and material question of fact
(within the meaning of Section 309(e) of the Act) respecting Buyer's qualifications. No waiver of or exemption from any FCC rule
or policy is necessary to be obtained by Buyer in order for the FCC Order to be granted.

 

(b)         Without
limiting the foregoing Section 4.5(a), Buyer shall make the affirmative certifications provided in Section III of FCC Form
314, or as may be required on any form required by the FCC to obtain its consent to this transaction, at the time of filing of
such form with the FCC as contemplated by Section 5.2.

 

(c)         Buyer
is financially able to consummate the transaction contemplated by this Agreement on the terms provided herein and has sufficient
funds to pay the Purchase Price at Closing.

 

4.6         Broker's
or Finder's Fees.  No agent, broker, investment banker, or other Person or firm acting on behalf of or under the authority
of Buyer or any affiliate of Buyer is or will be entitled to any broker's or finder's fee or any other commission or similar fee,
directly or indirectly, in connection with transactions contemplated by this Agreement.

 

4.7         Litigation.
There are no legal, administrative, arbitration or other proceedings or governmental investigations pending or, to the knowledge
of Buyer, threatened against Buyer that would give any third party the right to enjoin the transactions contemplated by this Agreement.

 

4.8         Representations
Complete. None of the representations or warranties made by Buyer, nor any statement made in any document or certificate
furnished by Buyer pursuant to this Agreement contains or will contain at the Closing, any untrue statement of a material fact,
or omits or will omit at the Closing, to state any material fact necessary in order to make the statements contained herein or
therein, in the light of the circumstances under which they were made, not misleading.

 

ARTICLE V

 

TRANSACTIONS PRIOR TO THE CLOSING
DATE

 

5.1         Conduct
of the Station's Business Prior to the Closing Date.  Seller covenants and agrees with Buyer that between the date hereof
and the Closing Date, unless the Buyer otherwise agrees in writing (which agreement shall not be unreasonably withheld or delayed),
and except as otherwise set forth in the LMA, Seller shall:

 

     

     

    

 

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(a)         Use
reasonable commercial efforts to maintain insurance upon all of the Sale Assets consistent with its practices for other stations;

 

(b)         Operate
the Station and otherwise conduct its business in all material respects in accordance with the terms or conditions of its FCC Licenses,
the Rules and Regulations, the Act and all other rules and regulations, statutes, ordinances and orders of all governmental authorities
having jurisdiction over any aspect of the operation of the Station, except where the failure to so operate would not constitute
a Material Adverse Condition on the Sale Assets or the operation of the Station or on the ability of Seller to consummate the transactions
contemplated hereby;

 

(c)         Comply
in all material respects with all Station Agreements Buyer is assuming now or hereafter existing;

 

(d)         Promptly
notify Buyer of any default by, or claim of default against, any party under any Station Agreements Buyer is assuming and any event
or condition which, with notice or lapse of time or both, would constitute an event of default under such Station Agreements;

 

(e)         Not
mortgage, pledge or subject any of the Sale Assets to any Lien other than a Permitted Lien;

 

(f)         Not
sell, lease or otherwise dispose of, nor agree to sell, lease or otherwise dispose of, any of the Sale Assets unless replaced with
similar items of substantially equal or greater value and utility;

 

(g)         Not
amend or terminate any Station Agreement; and

 

(h)         Notify
Buyer of any complaints, investigations or any material litigation pending or threatened against the Station or any material damage
to or destruction of any assets included or to be included in the Sale Assets.

 

5.2         Governmental
Consents. Seller and Buyer shall file with the FCC, within five (5) Business Days after the execution of this Agreement,
an application requesting FCC consent to assign the FCC Licenses to Buyer. Seller and Buyer shall take all commercially reasonable
steps necessary to prosecute such filing with diligence and shall diligently oppose any objections to, appeals from or petitions
to reconsider such approval of the FCC, to the end that the FCC Order and a Final Action with respect thereto may be obtained as
soon as practicable; provided, however, that in the event the application for assignment of the FCC Licenses has been designated
for hearing, either Buyer or Seller may elect to terminate this Agreement pursuant to Section 10.1(c). Each party shall
promptly provide the other with a copy of any pleading, order or other document served on it relating to the FCC assignment application,
and shall furnish all information required by the FCC. Buyer shall not knowingly take, and Seller covenants that Seller shall not
knowingly take, any action that such party knows or has reason to know would materially and adversely affect or materially delay
issuance of the FCC Order or materially and adversely affect or materially delay its becoming a Final Action without a Material
Adverse Condition, unless such action is requested or required by the FCC, its staff or the Rules and Regulations. Should Buyer
or Seller become aware of any facts which could reasonably be expected to materially and adversely affect or materially delay issuance
of the FCC Order without a Material Adverse Condition (including but not limited to, in the case of Buyer, any facts which would
reasonably be expected to disqualify Buyer from controlling the Station), such party shall promptly notify the other party thereof
in writing and both parties shall cooperate to take all steps reasonably necessary or desirable to resolve the matter expeditiously
and to obtain the FCC's approval of the assignment application.

 

     

     

    

 

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5.3         Other
Consents. Seller shall use its commercially reasonable best efforts to obtain the consent or waivers to the transactions
contemplated by this Agreement required under any Station Agreements; provided that Seller shall not be required to pay or grant
any material consideration in order to obtain any such consent or waiver.

 

5.4         Tax
Returns and Payments. All taxes pertaining to ownership of the Sale Assets or operation of the Station prior to the Closing
Date will be timely paid; provided that Seller shall not be required to pay any such tax so long as the validity thereof shall
be contested in good faith by appropriate proceedings.

 

5.5         Access
Prior to the Closing Date. Prior to the Closing, Buyer and its representatives may make such reasonable investigation of
the Sale Assets as it may desire; and Seller shall give to Buyer, its engineers, counsel, accountants and other representatives
reasonable access during normal business hours throughout the period prior to the Closing to the Sale Assets, provided that (i)
Buyer shall give Seller reasonable advance notice of each date on which Buyer or any such other Person desires such access, (ii)
each Person (other than an officer of Buyer) shall, if requested by Seller, be accompanied by an officer or representative of Buyer
approved by Seller, which approval shall not be unreasonably withheld, (iii) the investigations shall be reasonable in number and
frequency and, (iv) all investigations shall be conducted in such a manner as not to physically damage any property or constitute
a disruption of the operation of the Station or Seller or Seller’s affiliates. Seller shall furnish to Buyer during such
period all documents and copies of documents and information concerning the Sale Assets as Buyer may reasonably request. No investigation
or information furnished pursuant to this Section 5.5 shall affect any representations or warranties made by the Seller
herein.

 

5.6         Confidentiality;
Press Release. All non-public information, data and materials furnished to either party with respect to the other party
in connection with this transaction or pursuant to this Agreement is confidential. Each party agrees that, subject to the requirements
of applicable law, (a) it shall not disclose or otherwise make available, at any time, any such information, data or material to
any Person who does not have a confidential relationship with such party; (b) it shall protect such information, data and material
with a high degree of care to prevent the disclosure thereof; and (c) if, for any reason, this transaction is not consummated,
all information, data or material concerning the other party obtained by such party, and all copies thereof, will be returned to
the other party. Each party shall prevent the violation of any of the foregoing confidentiality provisions by its respective representatives.
Notwithstanding the foregoing, nothing contained herein shall prohibit Buyer or Seller from:

 

     

     

    

 

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(i)         using
such information, data and materials in connection with any action or proceeding brought or any claim asserted by Buyer or Seller
in respect of any breach by the other of any representation, warranty or covenant made in or pursuant to this Agreement, with such
use or disclosure limited to the extent necessary with respect to such claim; or

 

(ii)        supplying
or filing such information, data or materials to or with the FCC or SEC or any other valid governmental or court authority to the
extent required by law or reasonably necessary to obtain any consent, waiver, amendment, modification, approval, authorization,
permit or license which may be necessary to effectuate this Agreement, and to consummate the transaction contemplated herein.

 

Prior to Closing, no party shall, without
the prior written consent of the other, issue any press release or make any other public announcement concerning the transactions
contemplated by this Agreement, except to the extent that such party is so obligated by law, in which case such party shall give
advance notice to the other, and except as necessary to enforce rights under or in connection with this Agreement. In the event
that either party determines in good faith that a press release or other public announcement is desirable under any circumstances,
the parties shall consult with each other to determine the appropriate timing, form and content of such release or announcement.
Notwithstanding the foregoing, the parties acknowledge that this Agreement and the terms hereof will be filed with the FCC assignment
application and thereby become public.

 

5.7         Reasonable
Efforts. Subject to the terms and conditions of this Agreement, each of the parties hereto will use its commercially reasonable
efforts to take all action and to do all things necessary, proper or advisable to satisfy any condition to the parties' obligations
hereunder in its power to satisfy and to consummate and make effective as soon as practicable the transactions contemplated by
this Agreement.

 

5.8         FCC
Reports. Seller shall continue to file, on a current basis until the Closing Date, all reports and documents required to
be filed with the FCC with respect to the Station. Seller shall use commercially reasonable efforts to provide Buyer with copies
of all such filings within five (5) Business Days of the filing with the FCC.

 

5.9         Conveyance
Free and Clear of Liens. At or prior to the Closing, Seller shall obtain executed releases, in suitable form for filing,
of any security interests granted in the Sale Assets and of any other Liens on the Sale Assets except Permitted Liens. At the Closing,
Seller shall transfer and convey to Buyer all of the Sale Assets free and clear of all Liens except Permitted Liens.

 

     

     

    

 

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5.10       Broadcast
Interruption. If prior to Closing the Station is off the air or operating at a power level that results in a material reduction
in coverage (a “Broadcast Interruption”), then Seller shall use commercially reasonable efforts to return the Station
to the air and restore prior coverage as promptly as possible in the ordinary course of business. Notwithstanding anything herein
to the contrary, if prior to Closing there is a Broadcast Interruption in excess of 24 hours which is not the result of any action
of Buyer in connection with its operation of the Station pursuant to the LMA, then Buyer may postpone Closing until the date five
(5) business days after the Station returns to the air and prior coverage is restored in all material respects, subject to Section
10.1(b).

 

5.11       Accounts
Receivable. Except as otherwise provided in the LMA, Buyer shall not collect any A/R, and Buyer shall promptly pay over
to Seller any A/R it receives, without offset.

 

ARTICLE VI

 

CONDITIONS PRECEDENT TO THE

OBLIGATIONS OF BUYER TO CLOSE

 

Buyer's obligation
to close the transaction contemplated by this Agreement is subject to the satisfaction, on or prior to the Closing Date, of each
of the following conditions, unless waived by Buyer in writing:

 

6.1         Accuracy
of Representations and Warranties; Closing Certificate.

 

(a)         The
representations and warranties of Seller contained in this Agreement or in any other Document shall be complete and correct on
the date hereof and shall be complete and correct in all material respects at the Closing Date with the same effect as though made
at such time, except for changes permitted or contemplated by the terms of this Agreement.

 

(b)         Seller
shall have delivered to Buyer on the Closing Date a certificate that the conditions specified in Section 6.1(a) and Section
6.2 are satisfied as of the Closing Date.

 

6.2         Performance
of Agreements. Seller shall have performed in all material respects all of their covenants, agreements and obligations
required by this Agreement and each of the other Documents to be performed or complied with by them prior to or upon the Closing
Date.

 

6.3         FCC
Consent. The FCC Order shall have been issued by the FCC, and have become a Final Order.

 

     

     

    

 

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6.4         Adverse
Proceedings. Neither Buyer nor Seller shall be subject to any ruling, decree, order or injunction prohibiting the consummation
of the transactions contemplated hereby. No governmental authority having jurisdiction shall have notified any party to this Agreement
that consummation of the transaction contemplated hereby would constitute a violation of the laws of the United States or of any
state or political subdivision.

 

6.5         Delivery
of Closing Documents. Seller shall have delivered or caused to be delivered to Buyer on the Closing Date each of the Documents
required to be delivered pursuant to Section 8.2.

 

ARTICLE VII

 

CONDITIONS PRECEDENT OF THE

OBLIGATION OF SELLER TO CLOSE

 

The obligation of Seller
to close the transaction contemplated by this Agreement is subject to the satisfaction, on or prior to the Closing Date, of each
of the following conditions, unless waived by Seller in writing:

 

7.1         Accuracy
of Representations and Warranties; Closing Certificate.

 

(a)         The
representations and warranties of Buyer contained in this Agreement or in any other Document shall be complete and correct on the
date hereof and shall be complete and correct in all material respects at the Closing Date with the same effect as though made
at such time, except for changes permitted or contemplated by the terms of this Agreement.

 

(b)         Buyer
shall have delivered to Seller on the Closing Date a certificate that the conditions specified in Section 7.1(a) and Section
7.2 are satisfied as of the Closing Date.

 

7.2         Performance
of Agreements. Buyer shall have performed in all material respects all of its covenants, agreements and obligations required
by this Agreement and each of the other Documents to be performed or complied with by it prior to or upon the Closing Date.

 

7.3         FCC
Consent. The FCC Order shall have been issued by the FCC.

 

7.4         Adverse
Proceedings. Neither Buyer nor Seller shall be subject to any ruling, decree, order or injunction prohibiting the consummation
of the transactions contemplated hereby. No governmental authority having jurisdiction shall have notified any party to this Agreement
that consummation of the transaction contemplated hereby would constitute a violation of the laws of the United States or of any
state or political subdivision.

 

7.5         Delivery
of Closing Documents and Purchase Price. Buyer shall have delivered or caused to be delivered to Seller on the Closing
Date each of the Documents required to be delivered pursuant to Section 8.3, and Seller shall have received payment of the
Purchase Price with the form of payment set forth in Section 2.5.

 

     

     

    

 

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ARTICLE VIII

 

CLOSING

 

8.1         Time
and Place. Unless otherwise agreed to in advance by the parties, Closing shall take place via email on or before the tenth
Business Day after the date the FCC Order has become a Final Order, subject to the satisfaction or waiver of the conditions precedent
hereunder. In connection therewith the parties will deliver, in escrow, to opposing counsel and other appropriate parties, all
agreements, instructions, documents, releases, certificates, wire transfer instructions, pay-off instructions, UCC-3’s and
other matters and things necessary to effect Closing in such manner.

 

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

 

(a)         Certified
resolutions of Seller approving the execution and delivery of this Agreement and each of the other Documents and authorizing the
consummation of the transactions contemplated hereby and thereby.

 

(b)         The
certificate required by Section 6.1(b).

 

(c)         A
bill of sale and other instruments of transfer and conveyance transferring to Buyer the Tangible Personal Property.

 

(d)         Executed
releases, in suitable form for filing, of any security interests granted in the Sale Assets as security for payment of loans and
other obligations and of any other Liens (other than Permitted Liens).

 

(e)         An
instrument assigning to Buyer all right, title and interest of Seller in the FCC Licenses, and all other assignable or transferable
governmental permits, licenses and authorizations (and any renewals, extensions, amendments or modifications thereof) included
in the Sale Assets (if any).

 

(f)         An
instrument assigning to Buyer any remaining Sale Assets not otherwise conveyed.

 

(g)         An
instrument assigning to Buyer all of Seller’s rights arising after Closing under the Station Agreements.

 

(h)         A
Certificate of Good Standing for Seller issued by the State of Maryland.

 

     

     

    

 

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(i)         Such
additional information and materials as Buyer shall have reasonably requested to convey, transfer and assign the Sale Assets from
Seller to Buyer, free and clear of Liens, except for Permitted Liens.

 

8.3         Documents
to be Delivered to Seller by Buyer. At the Closing, Buyer shall deliver or cause to be delivered to Seller the following:

 

(a)         Certified
resolutions of Buyer's Board of Directors approving the execution and delivery of this Agreement and each of the other Documents
and authorizing the consummation of the transaction contemplated hereby and thereby.

 

(b)         The
Purchase Price as set forth in Section 2.5 along with all necessary documents to cause the Escrow Agent to release the Earnest
Money to Seller.

 

(c)         The
agreement of Buyer assuming the obligations arising after Closing under the Station Agreements.

 

(d)         The
certificate required under Section 7.1(b).

 

(e)         A
Certificate of Good Standing for Buyer issued by its state of incorporation.

 

(f)         Such
additional information and materials as Seller shall have reasonably requested.

 

8.4         FCC
Compliance. If after Closing the FCC Order is reversed or otherwise set aside, and there is a Final Action of the FCC (or
court of competent jurisdiction) requiring the re-assignment of the FCC Licenses to Seller, then the purchase and sale of the Sale
Assets shall be rescinded. In such event, Buyer shall reconvey to Seller the Sale Assets free and clear of Liens other than Permitted
Liens, and Seller shall repay to Buyer the Purchase Price and reassume the Station Agreements. Any such rescission shall be consummated
on a mutually agreeable date within thirty days of such Final Action (or, if earlier, within the time required by such order).
In connection therewith, Buyer and Seller shall each execute such documents (including execution by Buyer of instruments of conveyance
of the Sale Assets to Seller and execution by Seller of instruments of assumption of the Station Agreements) and make such payments
(including repayment by Seller to Buyer of the Purchase Price) as are necessary to give effect to such rescission.

 

     

     

    

 

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ARTICLE IX

 

SURVIVAL OF REPRESENTATIONS AND WARRANTIES;

INDEMNIFICATION

 

9.1         Survival
of Representation and Warranties. All representations and warranties, contained in this Agreement or in any other Document
shall survive the Closing for the Survival Period (defined below). The covenants and agreements in this Agreement shall survive
Closing until performed. No claim for a breach of a representation or warranty may be brought under this Agreement or any other
Document 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 a notice is so given, the right to indemnification with respect thereto under this
Article shall survive the Survival Period until such claim is finally resolved and any obligations with respect thereto are fully
satisfied. For purposes of this Agreement the “Survival Period” shall be one year after the Closing Date, except that
(a) any representation or warranty of Buyer or Seller as to (i) such party’s qualification and authority to consummate the
transactions contemplated hereby or (ii) title of the parties to the Station or Sale Assets, the Survival Period shall be indefinite,
and (b) any representation and warranty relating to any tax obligation of Seller, the Survival Period shall be the applicable statute
of limitations.

 

9.2         Indemnification
in General. Buyer and Seller agree that the rights to indemnification and to be held harmless set forth in this Agreement
shall, as between the parties hereto and their respective successors and assigns, be exclusive of all rights to indemnification
and to be held harmless that such party (or its successors or assigns) would otherwise have by statute, common law or otherwise.
Except with respect to claims based on actual fraud or intentional misrepresentation or as to any default or nonperformance of
a covenant in this Agreement that provides for performance following the Closing Date for which the remedies of specific performance,
injunctive relief, non-monetary declaratory judgment or any other non-monetary equitable remedies may be available under applicable
law, each party’s rights under this Article IX shall be the sole and exclusive remedies with respect to claims resulting
from or relating to any misrepresentation, breach of warranty or failure to perform any covenant or agreement contained in this
Agreement or otherwise relating to the transactions that are the subject of this Agreement. Without limiting the generality of
the foregoing, in no event shall either party or any Person claiming through, by or on behalf of either party, be entitled to claim
or seek rescission of the transactions consummated under this Agreement, except in accordance with Section 8.4.

 

9.3         Indemnification
by Seller.

 

(a)         Subject
to the provisions of Section 9.3(b) below and Section 10.2 below, Seller shall indemnify and hold harmless Buyer
and any officer, director, agent, employee and affiliate thereof with respect to any and all demands, claims, actions, suits, proceedings,
assessments, judgments, costs, losses, damages, liabilities and expenses (including reasonable attorneys' fees), relating to or
arising out of:

 

     

     

    

 

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(i) Any breach by Seller
of any of its representations or warranties set forth in this Agreement or any other Documents;

 

(ii) Any non-performance
by Seller of any of its covenants, obligations, or agreements set forth in this Agreement or any other Documents;

 

(iii) The ownership
or operation by Seller of the Station and the Sale Assets prior to the Closing Date, other than the Assumed Obligations;

 

(iv) All other liabilities
and obligations of Seller other than the Assumed Obligations; or

 

(iv) Noncompliance
by Seller with the provisions of the Bulk Sales Act, if applicable, in connection with the transactions contemplated hereby.

 

(b)         If Closing
occurs, Seller shall not be obligated to indemnify Buyer under Section 9.3(a)(i): (i) for any amount which exceeds an amount
equal to the Purchase Price for any claims asserted by Buyer and (ii) until the amount of such claims, liabilities, damages, losses,
costs and expenses exceeds Buyer’s Threshold Limitation, in which case Buyer shall then be entitled to indemnification of
the entire amount.

 

9.4         Indemnification
by Buyer. 

 

(a)         Subject
to the provisions of Section 9.4(b) below and Section 10.2 below, Buyer shall indemnify and hold harmless Seller
and any officer, director, agent, employee and affiliate thereof with respect to any and all demands, claims, actions, suits, proceedings,
assessments, judgments, costs, losses, damages, liabilities and expenses (including reasonable attorneys' fees) relating to or
arising out of:

 

(i) Any breach by Buyer
of any of its representations or warranties set forth in this Agreement or any other Documents;

 

(ii) Any non-performance
by Buyer of any of its covenants, obligations, or agreements set forth in this Agreement or any other Documents;

 

(iii) The ownership
or operation of the Station or Sale Assets from and after the Closing Date; or

 

(iv) All other liabilities
or obligations of Buyer pursuant to the terms of this Agreement, including, without limitation, the Assumed Obligations.

 

     

     

    

 

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(b)         If
Closing occurs, Buyer shall not be obligated to indemnify Seller under Section 9.4(a)(i) until the amount of such claims,
liabilities, damages, losses, costs and expenses exceeds Seller’s Threshold Limitation, in which case Seller shall then be
entitled to indemnification of the entire amount.

 

9.5         Indemnification
Procedures.

 

(a)         The Indemnified
Party shall give prompt written notice to the indemnifying party of any demand, suit, claim or assertion of liability by third
parties that is subject to indemnification hereunder (a “Claim”), but a failure to give such notice or delaying such
notice shall not affect the Indemnified Party’s rights or the Indemnifying Party’s obligations except to the extent
the Indemnifying Party’s ability to remedy, contest, defend or settle with respect to such Claim is thereby prejudiced and
provided that such notice is given within applicable Survival Period.

 

(b)         The Indemnifying
Party shall be entitled to assume the defense or opposition to such Claim with counsel selected by it. In the event that the Indemnifying
Party does not assume such defense or opposition in a timely manner, the Indemnified Party may undertake the defense, opposition,
compromise or settlement of such Claim with counsel selected by it at the Indemnifying Party’s cost (subject to the right
of the Indemnifying Party to assume defense of or opposition to such Claim at any time prior to settlement, compromise or final
determination thereof).

 

(c)         Anything
herein to the contrary notwithstanding: (i)   the Indemnified Party shall be entitled at all times to participate
in the defense of a Claim at its own expense; (ii) the Indemnifying Party shall not, without the Indemnified Party’s written
consent, settle or compromise any Claim or consent to entry of any judgment which does not include the giving by the claimant
to the Indemnified Party of a release from all liability in respect of such Claim; (iii) in the event that the Indemnifying Party
undertakes defense of or opposition to any Claim, the Indemnified Party, by counsel or other representative of its own choosing
and at its sole cost and expense, shall have the right to consult with the Indemnifying Party and its counsel concerning such
Claim and the Indemnifying Party and the Indemnified Party and their respective counsel shall cooperate in good faith with respect
to such Claim; and (iv) neither party shall have any liability to the other under any circumstances for special, indirect, consequential,
punitive or exemplary damages or lost profits or similar damages of any kind, whether or not foreseeable.

 

     

     

    

 

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ARTICLE X

 

TERMINATION; LIQUIDATED DAMAGES

 

10.1       Termination.
If Closing shall not have previously occurred, this Agreement shall terminate upon the earliest of:

 

(a)         The
giving of written notice from Seller to Buyer, or from Buyer to Seller, if:

 

		(i)	Either:

 

(A)         Any
of the representations or warranties contained herein of Buyer (if such termination notice is given by Seller), or of Seller (if
such termination notice is given by Buyer), are inaccurate in any respect and materially adverse to the party giving such termination
notice and such party has failed to remedy such inaccuracy within thirty (30) days after delivery of the termination notice, unless
the inaccuracy has been induced by or is the result of actions or omissions of the party giving such termination notice; or

 

(B)         Any
material obligation to be performed by Buyer (if such termination notice is given by Seller) or by Seller (if such termination
notice is given by Buyer) is not timely performed in any material respect and such party has failed to remedy such inaccuracy within
thirty (30) after days delivery of the termination notice, unless the lack of timely performance has been induced by or is the
result of actions or omissions of the party giving such termination notice; or

 

(C)         Any
condition (other than those referred to in Section 10.1(a)(i)(A) or Section 10.1(a)(i)(B)) to the obligation to close
the transaction contemplated herein of the party giving such termination notice has not been timely satisfied, and

 

(ii)        any
such inaccuracy, failure to perform or non-satisfaction of a material condition that neither has been cured nor satisfied within
thirty (30) days after written notice thereof from the party giving such termination notice nor waived in writing by the party
giving such termination notice; provided however that such opportunity to cure shall not apply to the failure of a party to perform
its obligations set forth in Article VIII herein. Notwithstanding anything herein to the contrary, no cure period shall
apply to Buyer’s obligations to deposit the Earnest Money within two (2) business days of the date hereof or to pay the Purchase
Price at Closing.

 

(b)         Written
notice from Seller to Buyer, or from Buyer to Seller, at any time if Closing has not occurred on or before October 1, 2018.

 

(c)         Written
notice from Seller to Buyer, or from Buyer to Seller, at any time following a determination by the FCC that the application for
consent to assignment of the FCC Licenses has been designated for hearing; provided that the party which is the subject of the
hearing (or whose alleged actions or omissions resulted in the designation for hearing) may not elect to terminate under this Section
10.1(c).

 

(d)         The
written notice by a party to the other party under Section 5.10 or Article XI.

 

     

     

    

 

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(e)         The
written election by Seller if Seller terminates the LMA in accordance with Section 7.1 of the LMA, or the written election
by Buyer if Buyer terminates the LMA in accordance with Section 7.1 or Section 7.2 of the LMA.

 

10.2       Obligations
Upon Termination.

 

(a)         In
the event this Agreement is terminated pursuant to Section 10.1(a)(i)(A) or Section 10.1(a)(i)(B), the aggregate
liability of Buyer for breach hereunder shall be limited as provided in Section 10.2(c) below, and the aggregate liability
of Seller for breach hereunder shall be limited as provided in Section 10.2(d) below. In the event this Agreement is terminated
for any other reason, neither party shall have any liability hereunder, except that the termination of this Agreement shall not
relieve any party of any liability for breach or default under this Agreement prior to the date of termination (except as set forth
in Section 10.2(c)). Notwithstanding anything contained herein to the contrary, Sections 2.4(b) and Section 10.2(b)
and (c) with respect to the Earnest Money, Section 5.6 (Confidentiality; Press Release) and Section 14.3 (Payment
of Expenses) shall survive any termination of this Agreement

 

(b)         Upon
termination of this Agreement, Buyer shall be entitled to the return of the Earnest Money from the Escrow Agent under the Escrow
Agreement if such termination is validly given pursuant to Section 10.1 in all cases except if given by Seller due to the
breach or default by Buyer of this Agreement pursuant to Section 10.1(a). If Buyer is entitled to the return of the Earnest
Money, Seller shall cooperate with Buyer in taking such action as is required under the Escrow Agreement in order to effect such
return from the Escrow Agent.

 

(c)         If
this Agreement is terminated by Seller’s giving of valid written notice to Buyer pursuant to Section 10.1(a), Buyer
agrees that Seller shall be entitled to receive upon such termination, as liquidated damages and not as a penalty, the Earnest
Money (“Liquidated Damages Amount”). THE DELIVERY OF THE LIQUIDATED DAMAGES AMOUNT TO SELLER SHALL BE CONSIDERED LIQUIDATED
DAMAGES AND NOT A PENALTY, AND SHALL BE THE RECIPIENT’S SOLE REMEDY AT LAW OR IN EQUITY FOR A BREACH BY BUYER HEREUNDER IF
CLOSING DOES NOT OCCUR. BUYER AND SELLER EACH ACKNOWLEDGE AND AGREE THAT THIS LIQUIDATED DAMAGE AMOUNT IS REASONABLE IN LIGHT OF
THE ANTICIPATED HARM WHICH WILL BE CAUSED BY A BREACH OF THIS AGREEMENT, THE DIFFICULTY OF PROOF OF LOSS, THE INCONVENIENCE AND
NON-FEASIBILITY OF OTHERWISE OBTAINING AN ADEQUATE REMEDY, AND THE VALUE OF THE TRANSACTION TO BE CONSUMMATED HEREUNDER. If Seller
is entitled to the Liquidated Damages, Buyer shall cooperate with Seller in taking such action as is required under the Escrow
Agreement in order to effect payment from the escrowed funds.

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 30 of 40

 

(d)         Notwithstanding
any provision of this Agreement to the contrary, if this Agreement is terminated by Buyer’s giving of written notice to Seller
pursuant to Section 10.1(a)(i)(A) or Section 10.1(a)(i)(B), Buyer shall be entitled to make any appropriate claim
for damages against Seller.

 

10.3       Termination
Notice. Each notice given by a party pursuant to Section 10.1 to terminate this Agreement shall specify the Section
(and clause or clauses thereof) of Section 10.1 pursuant to which such notice is given.

 

10.4       Specific
Performance. Seller acknowledges that the Station and the Sale Assets are of a special, unique, and extraordinary character,
and that any breach of this Agreement by Seller could not be compensated for by damages. Accordingly, if Seller shall breach its
obligations under this Agreement, Buyer shall be entitled, in addition to any of the remedies that it may have, to enforcement
of this Agreement (subject to obtaining any required approval of the FCC) by decree of specific performance or injunctive relief
requiring Seller to fulfill its obligations under this Agreement. In any action by Buyer to equitably enforce the provisions of
this Agreement, Seller shall waive the defense that there is an adequate remedy at law or equity and agree that Buyer shall have
the right to obtain specific performance of the terms of this Agreement without being required to prove actual damages, post bond
or furnish other security. Notwithstanding the foregoing, if Buyer fails to comply with its obligations related to the Earnest
Money or Section 5.6 or Article XII, Seller shall be entitled to all available rights and remedies, including without
limitation specific performance.

 

ARTICLE XI

CASUALTY

 

Upon the occurrence
of any casualty loss, damage or destruction material to the operation of the Sale Assets prior to the Closing, Seller shall promptly
give Buyer written notice setting forth in reasonable detail the extent of such loss, damage or destruction and the cause thereof
if known. Seller shall use its commercially reasonable efforts to promptly commence and thereafter to diligently proceed to repair
or replace any such lost, damaged or destroyed property. In the event that such repair or replacement is not fully completed prior
to the Closing Date, then the parties shall proceed to Closing (with Seller’s representations and warranties deemed modified
to take into account any such condition) and the Purchase Price shall be reduced by the reasonably estimated cost to complete repairs
(as Buyer’s sole remedy), except that if such damage or destruction materially disrupts Station operations, then Buyer may
postpone Closing until the date five (5) business days after operations are restored in all material respects, subject to Section
10.1(b).

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 31 of 40

 

ARTICLE XII

 

CONTROL OF STATION

 

Subject to the LMA,
between the date of this Agreement and the Closing Date, Buyer shall not control, manage or supervise the operation of the Station
or the conduct of its business, all of which shall remain the sole responsibility of and under the control of Seller.

 

ARTICLE XIII

 

1031 EXCHANGE

 

Seller agrees to cooperate
with Buyer as reasonably requested by Buyer to assist Buyer in consummating a tax deferred exchange under Section 1031 of the Internal
Revenue Code of 1986, and the comparable provisions of applicable state law, provided Seller (i) shall incur no additional
liabilities, expenses or costs as a result of or connected with such exchange and (ii) shall not be obligated to delay Closing
if all of the conditions contained in Articles VI and VII of this Agreement have been satisfied or waived by the applicable party.

 

ARTICLE XIV

 

MISCELLANEOUS

 

14.1       Further
Actions. From time to time before, at and after the Closing, each party, at its expense and without further consideration,
will execute and deliver such documents to the other party as the other party may reasonably request in order more effectively
to consummate the transactions contemplated hereby.

 

14.2       Access
After the Closing Date. After the Closing and for a period of twelve (12) months, Buyer shall provide Seller, Seller’s
counsel, accountants and other representatives with reasonable access during normal business hours to the books, records, property,
personnel, contracts, commitments and documents of the Station pertaining to transactions occurring prior to the Closing Date,
that are the responsibility and obligation of the Seller, when requested by Seller, and Buyer shall retain such books and records
for the normal document retention period of Buyer. At the request and expense of Seller, Buyer shall deliver copies of any such
books and records to Seller.

 

14.3       Payment
of Expenses.

 

(a)         Any
fees assessed by the FCC in connection with the filing contemplated by Section 5.2 shall be shared equally between Seller
and Buyer.

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 32 of 40

 

(b)         All
state or local sales or use, stamp or transfer, grant and other similar taxes payable in connection with consummation of the transactions
contemplated hereby or otherwise applicable to the transfer of the Sale Assets shall be paid for by Buyer.

 

(c)         Except
as otherwise expressly provided in this Agreement and the LMA, Buyer shall pay (or reimburse Seller for) the expenses of Buyer
and Seller, including the fees of any attorneys and accountants engaged by such party, in connection with this Agreement and the
consummation of the transactions contemplated herein.

 

14.4       Notices.
All notices, demands or other communications given hereunder shall be in writing and shall be sufficiently given if delivered by
courier or nationally recognized overnight courier service, or sent by registered or certified mail, first class, postage prepaid,
addressed as follows:

 

(a)           If
to Seller, to:

 

AM 570, LLC

855 Aviation Drive, Ste 200

Camarillo, CA 93010

Attention: Brian J. Counsil, CFO and
General Counsel

 

(b)           If
to Buyer, to:

 

Salem Media of Virginia,
Inc.

4880 Santa Rosa Road

Camarillo, California
93012

Attention:Christopher
J. Henderson, Sr. Vice President

 

or such other address with respect to any
party hereto as such party may from time to time notify (as provided above) to the other party hereto. Any such notice, demand
or communication shall be deemed to have been given (i) if so mailed, as of the close of the third (3rd) business day
following the date mailed, and (ii) if personally delivered or sent by confirmed delivery by a nationally recognized overnight
courier service, on the date received.

 

14.5       Entire
Agreement. This Agreement, the Schedules hereto, and the other Documents constitute the entire agreement and understanding
between the parties hereto with respect to the subject matter hereof and supersede any prior negotiations, agreements, understandings
or arrangements between the parties with respect to the subject matter hereof. No party makes any representation or warranty with
respect to the transactions contemplated by this Agreement except as expressly set forth in this Agreement. Without limiting the
generality of the foregoing, Seller makes no representation or warranty to Buyer with respect to any projections, budgets or other
estimates of the Station’s revenues, expenses or results of operations, or any other financial or other information made
available to Buyer with respect to the Station.

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 33 of 40

 

14.6       Binding
Effect; Benefits. Except as otherwise provided herein, this Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors or assigns. Except to the extent specified herein, nothing in this Agreement,
express or implied, shall confer on any Person other than the parties hereto and their respective successors or assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

 

14.7       Assignment.
This Agreement and any rights hereunder shall not be assignable by either party hereto without the prior written consent of the
other party. Notwithstanding the foregoing, Buyer may in its sole and absolute discretion, upon prior written notice to Seller,
assign all of its right, title, interest and obligation under this Agreement to any entity controlled by, or under common control
with Buyer, including any subsidiary of Salem Media Group, Inc., provided that (i) any such assignment does not delay processing
of the FCC assignment application contemplated by Section 5.2, grant of the FCC Order or Closing, (ii) any such assignee
delivers to Seller a written assumption of this Agreement, (iii) Buyer shall remain liable for all of its obligations hereunder
and (iv) Buyer shall be solely responsible for any third party consents necessary in connection therewith (none of which are a
condition to Closing). In addition, to facilitate a like-kind exchange in accordance with Article XIII, Buyer may assign
its rights under this Agreement (in whole or in part) to a “qualified intermediary” under section 1.1031(k)-1(g)(4)
of the treasury regulations (but such assignment shall not relieve Buyer of its obligations under this Agreement). No assignment
shall relieve any party of any obligation or liability under this Agreement.

 

14.8       Governing
Law. This Agreement shall in all respects be governed by and construed in accordance with the laws of the State of Maryland,
including all matters of construction, validity and performance.

 

14.9       Bulk
Sales. Buyer hereby waives compliance by Seller with the provisions of the Bulk Sales Act and similar laws of any state
or jurisdiction, if applicable. Seller shall, in accordance with Article IX, indemnify and hold Buyer harmless from and
against any and all claims made against Buyer by reason of such non-compliance.

 

14.10     Amendments
and Waivers. No term or provision of this Agreement may be amended, waived, discharged or terminated orally but only by
an instrument in writing signed by the party against whom the enforcement of such amendment, waiver, discharge or termination is
sought. Any waiver shall be effective only in accordance with its express terms and conditions.

 

14.11     Severability.
If any provision of this Agreement, or the application thereof to any Person or entity or any circumstance, is invalid or unenforceable
in any jurisdiction, so long as no party is deprived of the benefits of this Agreement in any material respect: (i) a suitable
and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the extent
and purpose of such invalid and unenforceable provision, and (ii) the remainder of this Agreement and the application of such provision
to other Persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity
or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 34 of 40

 

14.12     Headings.
Except as provided in Article I, the captions in this Agreement are for convenience of reference only and shall not define
or limit any of the terms or provisions hereof.

 

14.13     Counterparts.
This Agreement may be executed in any number of counterparts, and by either party on separate counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument. Fax or PDF signatures shall be deemed
the same as original signatures. This Agreement is not binding until executed by both parties hereto.

 

14.14     References.
All references in this Agreement to Articles and Sections are to Articles and Sections contained in this Agreement unless a different
document is expressly specified.

 

14.15     Schedules.
Unless otherwise specified herein, each Schedule referred to in this Agreement is attached hereto, and each such Schedule is hereby
incorporated by reference and made a part hereof as if fully set forth herein. A disclosure on any of the attached Schedules is
a disclosure for all purposes. Except as set forth herein, all disclosures are made as of the date of this Agreement. The fact
that any item or information is contained in the Schedules shall not be construed to mean that such item or information is required
to be disclosed in or by this Agreement or that such item or information is material. The Schedules qualify all representations,
warranties and covenants set forth in this Agreement to the extent it is reasonably apparent that any such disclosure is relevant
or applicable to such other Schedules.

 

14.16     Attorneys’
Fees. If any action at law or equity is brought, whether in a judicial proceeding or arbitration, to enforce or interpret
any provision of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and expenses
from the other party, which fees and expenses shall be in addition to any other relief which may be awarded.

 

14.17     Knowledge.
All references to the knowledge or awareness of Seller or Buyer shall refer to the Seller’s or Buyer’s respective actual
knowledge, assuming a reasonable degree of investigation by such party.

 

(The remainder of this page is intentionally
left blank.

See next page for the Signature Page
to this Agreement)

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 35 of 40

 

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

 

	"SELLER”	 	“BUYER”
	 	 	 
	AM 570, LLC	 	SALEM MEDIA OF VIRGINIA, INC.
	 	 	 	 	 
	By:	/s/Brian J. Counsil	 	By:	/s/Christopher J. Henderson
	Name:	Brian J. Counsil	 	Name:	Christopher J. Henderson
	Title:	CFO & General Counsel	 	Title:	Senior Vice President

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 36 of 40

 

LIST OF SCHEDULES

 

	Schedule 3.4	Notices/Consents
	 	 
	Schedule 3.6	Tangible Personal Property
	 	 
	Schedule 3.8	FCC Licenses
	 	 
	Schedule 3.9	List of Station Agreements

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 37 of 40

 

Schedule 3.4

 

Notices/Consents

 

Representation Agreement dated December 1, 2014 between Christal
Radio Sales, Inc. and Red Zebra Holdings, LLC for WSPZ, assigned to Seller as of September 15, 2017 – requires consent
to assign

 

Tower Lease Agreement between Salem Radio Properties, Inc. (as
Lessor) and AM 570, LLC (as Lessee) dated as of September 15, 2017 – requires consent to assign

 

Comcast Enterprise Services Sales Order Form and Master Services
Agreement between Seller and Comcast, dated September 8, 2017.

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 38 of 40

 

Schedule 3.6

 

Tangible Personal Property

 

	Telos Zephyrxstream  (not operational – bad ISDN Card)
	1,080' of 1/2" stabilized transmission line
	1,080' of 7/8" dielectric transmission line
	1901 4-tower/2-pattern antenna monitor
	2 hp wet/dry vacuum cleaner
	260 mulitmeter
	3/8" electric drill
	300' of 7/8" foam dielectric transm line
	6' grid STL dish antenna
	60 kilowatt diesel generator
	AM5 five kilowatt AM transmitter
	AM6A six kilowatt AM transmitter
	ARC-16 remote control system
	AS10 C-quam stereo modulation 
	Asco 200 ampere auto transfer switch
	Four-tower AM ground system
	hand tools (in lots)
	isocoupler
	Paraflector STL antenna
	Phasetek 5 kilowatt RF load
	Phasetek 5 kw antenna system and ATU's
	relay interface
	Roh 250 gallon above ground fuel tank
	36-drawer metal parts cabinet
	Double-pedestal metal desk
	Two-drawer metal file cabinet
	Two-drawer metal legal file cabinet
	Upholstered metal swivel chair
	Upholstered metal swivel chair
	Wood and metal workbench
	100 loudspeaker
	8' metal enclosed equipment rack
	Acopian 10A DC power supply
	D-75 audio amplifier
	Gemini building security system
	Intraplex T1 digital encoder/decoder
	RM-3 rack shelf
	Advance Replacement PA Module
	WSPZ Power Supply

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 39 of 40

 

Schedule 3.8

 

FCC Licenses

 

	Call Sign:	WSPZ(AM), Bethesda, MD	 	Facility ID 11846
	 	 	 	 
	Frequency:	570 kHz	 	 
	 	 	 	 
	Licensee:	AM 570, LLC	 	 

 

	DESCRIPTION	 	FILE NUMBER/TYPE	 	EXPIRATION DATE
	Renewal Authorization	 	BR-20110601ABT	 	10/1/2019
	License Authorization	 	BZ-19950228AC	 	—
	KPM471	 	Remote pickup	 	10/1/2019
	WLO430	 	STL	 	10/1/2019

 

     

     

    

 

	 	Asset Purchase Agreement
	 	WSPZ(AM)
	 	Page 40  of 40

 

Schedule 3.9

 

List of Station Agreements

 

		1.	Tower Lease Agreement between Salem Radio Properties, Inc. (as Lessor) and AM 570, LLC (as Lessee) dated as of September 15,
2017.

 

		2.	Representation Agreement dated December 1, 2014 between Christal Radio Sales, Inc. and Red Zebra Holdings, LLC for the Station,
as assigned by Red Zebra Holdings, LLC to Seller as of September 15, 2017.

 

		3.	Seller’s interest as assignee in part solely as to the Station of Red Zebra Broadcasting in the Comcast Enterprise Master
Services Agreement dated May, 2016, as amended, between Comcast Cable Communications Management, LLC and Red Zebra Broadcasting
for fiber.

 

		4.	Comcast Enterprise Services Sales Order Form and Master Services Agreement between Seller and Comcast, dated September 8, 2017.

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