Document:

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                                                                   Exhibit 10.46

                          EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT dated as of December 7, 2000, by and between Spanish
Broadcasting System, Inc., a Delaware corporation, having a place of business
at 3191 Coral Way, Miami, Florida (the "Company") and Joseph A. Garcia (the
"Executive").

     WHEREAS, the Executive has been employed by the Company for a number of
years as its Chief Financial Officer, Executive Vice President and Secretary;
and

     WHEREAS, the Company desires to assure the continued services of the
Executive and the Executive is willing to continue to serve in the employ of
the Company for the period set forth herein upon the terms and conditions
hereinafter provided;

     NOW, THEREFORE, in consideration of the mutual promises and agreements set
forth below, the Company and the Executive agree as follows:

     1.  Term. Except as otherwise provided in Section 4 hereof, the Company
agrees to employ the Executive, and the Executive agrees to serve, for a period
of five years commencing on the date the signing of this contract and ending on
the fifth anniversary of the signing date, provided that, unless either party
otherwise elects by notice in writing to the other at least 90 days prior to
the fifth anniversary of the signing date or any succeeding anniversary of the
signing date, the employment term shall be automatically renewed for successive
one-year terms unless sooner terminated pursuant to the terms of this Agreement
(the "Employment Term").

     2.  Positions and Duties; Place of Performance.

         (a)  Positions and Duties. The Executive shall be employed as Chief
Financial Officer, Executive Vice President and Secretary of the Company and
shall have the
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duties, responsibilities and authority as may from time to time be assigned to
him by Raul Alarcon, Jr. (the "CEO") that are consistent with and normally
associated with such positions, and shall continue to have responsibility for
those segments of the Company's business for which he is currently responsible.
The Executive shall devote substantially all of his business time, effort and
energies exclusively to the business of the Company, and shall not serve as an
active principal or a director or officer of any other company or entity
without the prior written consent of the CEO, except that the Executive may
serve as a director or officer of any trade association, civic, religious,
business, educational or charitable organization without such consent.

         (b)  Place of Performance. The Executive shall be based in Miami,
Florida, except for required travel on the Company's business.

     3.  Compensation and Benefits.

         (a)  Base Salary. During the Employment Term, the Company shall pay
the Executive a base salary at the annual rate of $400,000 per year (the "Base
Salary"), payable in accordance with the Company's normal payroll practices for
executive compensation, but not less frequently than monthly. The Executive
Base Salary will be reviewed not less often than annually by the Company's
Compensation Committee. In addition, the Compensation Committee shall meet
annually to determine what, if any, bonus shall be provided Executive for the
fiscal year.

         (b)  Bonuses. In addition to the Base Salary, the Executive shall be
entitled to receive a cash bonus each year at the discretion of the Board of
Directors of the Company.

         (c)  Other Benefit Plan and Fringe Benefits. The Executive shall be
eligible (I) to participate in any and all retirement, family group health,
insurance plans and in all

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other employee benefit plans in which he currently participates and/or in any
such plans established or maintained by the Company during the Employment Term
that are made available to its management executives generally, (ii) to
receive all fringe benefits, for which his status and level of employment
qualify him in accordance with the Company's usual policies and arrangements
and the terms of such plans, policies and arrangements and (iii) to receive
such other benefits as are specified on Schedule A.

         (d)  Options. The Company has granted the Executive an option to
purchase 250,000 shares of common stock of the Company upon the Effective Date
(the "Option") at an exercise price equal to the public offering price of the
Company's initial public offering. The Options shall be incentive stock options
(within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code")) to the maximum extent possible, (subject to qualification
of such options or any portion thereof as incentive stock options, and shall be
nonqualified stock options to the extent they do not so qualify). The Company
shall grant the Executive an option to purchase 100,000 shares of common stock
of the Company upon the execution of this Employment Agreement at an exercise
price equal to the closing price (NASDAQ) at such date of execution. The
Options shall be incentive stock options (within the meaning of Section 422 of
the Internal Revenue Code of 1986, as amended (the "Code")) to the maximum
extent possible, (subject to qualification of such options or any portion
thereof as incentive stock options, and shall be nonqualified stock options to
the extent they do not so qualify). The Option for 100,000 shares shall vest
20,000 upon execution of this Employment Agreement, the remain shares shall vest
over the four (4) years following the execution of this Employment Agreement
(with 20,000 to vest each year on the first, second, third and fourth
anniversary of the execution date), provided that the Executive is employed on
each such date.

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Notwithstanding the foregoing, the Executive shall be eligible to participate
in any stock option or other equity-based program established by the Company
during the Employment Term.
               (e)  Expenses. The Company shall reimburse the Executive for any
and all out-of-pocket expenses incurred by the Executive during the Employment
Term in connection with his duties and responsibilities hereunder in accordance
with the Company's usual policy of reimbursing senior executives.
          4.   Termination.
               (a)  Compensation and Benefits. Except as otherwise provided in
this section or in Section 4 hereof, upon termination of the Executive's
employment hereunder, his right to any form of compensation hereunder shall
cease, except that he shall be entitled to receive any salary or other benefits
accrued but not paid up to his Date of Termination or for any period required
by law and any out-of-pocket expenses reasonably incurred by the Executive
prior to such date.
               (b)  Death and Disability. The Executive's employment hereunder
shall terminate upon his death, and may be terminated by the Company due to
Disability. For purposes of this Agreement, "Disability" shall mean the
determination by the Board that the Executive is physically or mentally
incapacitated and has been unable for a period of six consecutive months, or for
shorter periods aggregating six months in any period of twelve (12) consecutive
months to perform the duties for which he was responsible immediately before the
onset of his incapacity. In order to assist the Board in making such a
determination, the Executive shall, as reasonably requested by the Board, make
himself available for medical examinations by a physician chosen by the Board
and approved by the Executive. The

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determination of the physician chosen in accordance with the preceding sentence
shall be final and binding on the Company and the Executive.
               (c)  Termination By the Company For Cause. The Executive's
employment hereunder may be terminated by the Company for Cause at any time.
For purposes of this Agreement, the term "Cause" shall mean the Executive's
(I) commission of an illegal act or acts that was intended to and did defraud
the Company or any of its affiliates, (ii) gross negligence or willful
misconduct in the management of the Company's affairs which materially harms
the Company and which is not remedied within 30 days of receiving notice of
same, or (iii) breach of the provisions of Section 5(a) or (b) hereof. In any
case described in this section, the Executive shall be given written notice, in
accordance with Section 4(f), that the Company intends to terminate his
employment for Cause. Such written notice shall specify the particular act or
acts, or failure to act, that is or are the basis for the decision to so
terminate the Executive's employment for Cause, and shall give the Executive
the right to cure any breach so specified for a period of thirty (30) days.
               (d)  Termination By the Executive For Good Reason. The Executive
may terminate his employment hereunder for Good Reason. For purposes of this
Agreement, the term "Good Reason" shall mean and shall be deemed to exist if,
without the prior written consent of the Executive, (I) the Executive is
replaced as CFO or is assigned duties or responsibilities that are inconsistent
in any material respect with the scope of the duties or responsibilities
associated with his titles or positions, as set forth in this Agreement (or to
which he is promoted). (ii) the Executive's duties or responsibilities are
significantly reduced, (iii) benefits to which the Executive is entitled under
the employee benefit plans of the Company are in the aggregate materially
decreased, unless such decrease is required by law or is applicable to all
employees of

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the Company eligible to participate in any plan so affected, not just those
covered by employment agreements with the Company, (iv) the Executive's Base
Salary is reduced, (v) the Company fails to perform any material term or
provision of this Agreement, (vi) the Executive's office location is relocated
to one that is more than fifty (50) miles from the location at which the
Executive was based immediately prior to the relocation, (vii) the Company
fails to obtain the full assumption of this Agreement by a successor or (viii)
the Executive does not report directly to Raul Alarcon, Jr. In the event this
agreement is not assumed by a successor, then, in that event the Company shall
make a lump sum payment equal to the remaining compensation due Executive
pursuant to this agreement. Such payment shall be made at the time of
consummation of any sale of Company.
               (e)  Compensation Upon Termination Without Cause or for Death or
Disability.
                    (I)  If the Company terminates the Executive's employment
hereunder other than for Cause or other than in accordance with Section 4(b),
or the Executive terminates his employment for Good Reason, notwithstanding any
other provision of this Agreement to the contrary:
               (A)  In addition to the amounts paid to the Executive pursuant
to Section 4(a), in lieu of any further salary payments to the Executive for
periods subsequent to the Date of Termination, the Company shall pay the
Executive an amount equal to two times the Executive's annual Base Salary rate
in effect as of the Date of Termination, plus two times the bonus paid him with
respect to the year preceding such Date of Termination. Except as provided in
Section 6(a)(I), this amount shall be paid in [substantially equal monthly
payments during the two years following the Executive's Date of Termination,
provided, however, that the Company

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may determine, in its sole discretion, to pay such amount (or any portion
remaining during such period if periodic payments have commenced) in a single
lump sum in cash.

               (B)  The Company shall continue to provide the Executive (and his
eligible dependents, if any) with group health and life insurance benefits and
long-term disability insurance coverage (or the economic equivalent thereof) at
the level (including, if applicable, the portion of the premium paid by the
Company for such coverage) in effect on the Date of Termination for the one-year
period following such date, provided that such coverage shall cease to be
provided if the Executive is employed by another employer within such one-year
period, and further provided that, the date of the expiration of the extended
period of coverage provided under this clause (I)(B) shall be treated as the
date of the termination of the Executive's employment solely for the purpose of
determining the rights of the Executive (and his eligible dependents, if any) to
the continuation coverage provided under Section 4980B of the Code.

               (C)  All nonvested Options previously granted to Executive shall
immediately vest and remain exercisable until the earlier of (I) two years from
the Executive's Date of Termination and (ii) the remaining term of the Option.

               (D)  If the Executive's employment hereunder is terminated as a
result of Death or Disability, he shall be paid a single lump sum in cash within
thirty (30) days of his Date of Termination in an amount equal to one year of
his Base Salary.

               (f)  Notice of Termination: Date of Termination. Any termination
of the Executive's employment, other than by reason of his death, shall be
communicated by the terminating party by a written notice of termination (the
"Notice of Termination"). The Notice of Termination shall (I) indicate the
specific termination provision in this Agreement relied upon (ii) set forth in
reasonable detail the facts and circumstances claimed to provide a basis for

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termination of the Executive's employment under the provision so indicated, and
(iii) if the termination date is other than the date of receipt of such notice,
specify the date on which the Executive's employment is to be terminated (which
date shall not be earlier than the date on which such notice is actually
received, or in the case of a termination for Disability, the sixtieth (60th)
day after such notice is received). In the case of a termination by the Company
for Cause, the Notice of Termination shall be given within one hundred and
eighty (180) business days after the Company's CEO has actual knowledge of the
events justifying the purported termination, and in the case of a termination
by the Executive for Good Reason, the notice shall be given within one hundred
and eighty (180) days of the Executive's having actual knowledge of the events
justifying such termination. For purposes of this Agreement, "Date of
Termination" shall mean (I) if the Executive's employment is terminated by his
death, the date of his death, and (ii) in all other cases, the later of the date
of actual receipt of the Notice of Termination, or the date specified in such
notice.

               (g)  No Mitigation; No Offset. In the event of any termination of
the Executive's employment under this Section 4, the Executive shall be under no
obligation to seek other employment and there shall be no offset against any
amounts due the Executive under this Agreement on account of any remuneration
that the Executive may obtain from any subsequent employment. Any amounts due
under this Section 4 are in the nature of liquidated damages, and not in the
nature of a penalty.

           5.  Covenants.

               (a)  Competitive Activity. During the Employment Term, and for a
period of twelve (12) months after the Executive's Date of Termination, the
Executive agrees that, without the prior written consent of the Board, he shall
not render services in any capacity

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for a radio station competitive with the Company's radio business, nor shall he
be directly or indirectly involved in any radio business or radio network
competitive with the Company's radio business.

               (b)  Solicitation or Interference. During the Employment Term and
for a period of twelve (12) months after the Executive's Date of Termination,
the Executive shall not, either for himself or on behalf of any third party: (I)
in any manner induce any employee, agent, representative, customer, former
customer, or any other person or concern, dealing with or in some other way
associated with the Company, to terminate such dealings or association; or (ii)
do anything, directly or indirectly, to interfere with the relationship between
the Company and any such person or concern.

               (c)  Non-Disclosure of Proprietary Information. The Executive
agrees that he will not disclose the trade secrets or confidential and
proprietary information of the Company during the Employment Term or thereafter.
The parties understand and agree that nothing contained herein shall prevent the
Executive from disclosing: (1) information required to be disclosed pursuant to
compulsory legal process, provided that he shall give the Company prompt notice
of such process prior to disclosure; (2) information which was in his lawful
possession at the time of or prior to its submission to him by the Company; or
(3) information which is in the public domain.

               (d)  Remedy for Breach. If any provision of this Section 4 is
deemed invalid or unenforceable, such provision shall be deemed modified and
limited to the extent necessary to make it valid and enforceable. The Executive
acknowledges and agrees that the provisions of this section are reasonable and
necessary for the protection of the Company and that the Company will be
irrevocably damaged if such provisions are not specifically enforced

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Accordingly, money damages from the Executive for a breach of this section
would be difficult, if not impossible, to calculate and the most appropriate
relief in the event of the Executive's breach would be injunctive relief.
Nothing contained herein shall be deemed to prohibit the Company, for any such
breach, from instituting or prosecuting any other proceeding in any court of
competent jurisdiction, in either law or equity, to obtain damages for any
breach of this Agreement. All remedies given to the Company by this Agreement
shall be construed as cumulative remedies and shall not be alternative or
exclusive remedies.

     6. Change in Control Provisions.

          (a) Impact of Event. In the event of a "Change in Control" of the
Company, as defined in Section 6(b), the following provisions shall apply in
addition to the other provisions of this Agreement:

               (I) If, on or before the second anniversary of the Change in
Control, the Executive's employment hereunder is terminated by the Company for
any reason other than for Cause or by the Executive for Good Reason, (A)
Section 5(a) shall not be applicable to the Executive from and after his Date
of Termination, (B) the Executive shall be entitled to receive the amount
determined under Section 4(e)(I)(A) in a single lump sum in cash within thirty
(30) days of the Executive's Date of Termination, and such amount shall not be
discounted in any way to reflect its present value, (C) any and all Options the
Executive then holds which are not exercisable shall vest and be exercisable
immediately, and (D) notwithstanding Section 4(e)(B) hereof, at the Company's
expense, the Executive shall continue to be a participant in any group health
plan (which may be provided by payment of COBRA continuation coverage premiums)
maintained by the Company (or the economic equivalent in

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cash) at the level in effect on the Executive's Date of Termination for a
period of eighteen (18) months following his Date of Termination.

               (ii) All expenses (including, without limitation, legal fees and
expenses) incurred by the Executive in connection with, or in prosecuting or
defending, any claim or controversy arising out of or relating to this
Agreement shall be paid by the Company, unless the Executive fails to prevail at
least in part in any such claim or controversy and the Company receives a
written opinion of independent legal counsel, selected by the Board, to the
effect that such expenses were not incurred by the Executive in good faith.
Pending any such determination, such expenses shall be paid by the Company in
advance on a monthly basis, upon an undertaking by the Executive to repay such
advanced amounts if the Executive fails to prevail in any such claim or
controversy and it should thus be determined that the expenses were not
incurred by the Executive in good faith.

          (b) Definition of Change in Control. A Change in Control shall mean
the happening of any of the following:

               (I) any "person," as such term is used in Section 13(d) and 14(d)
of the Securities Exchange Act of 1934 (the "Exchange Act") (other than the
Company or any subsidiary of the Company, or any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any
subsidiary) becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing [thirty percent (30%)] or more of the combined voting power of the
Company's then outstanding securities;

               (ii) during any period of two consecutive years beginning on or
after the Effective Date hereof, individuals who at the beginning of such
period constitute the

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Board, and any new director (other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction
described in clause (I), (iii) or (iv)) whose election by the Board or
nomination for election by the Company's shareholders was approved by a vote of
at least two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved (unless the approval of the election or
nomination for election of such new directors was in connection with an actual
or threatened election or proxy contest), cease for any reason to constitute at
least a majority thereof;

               (iii) the shareholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than (x) a
merger of consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity) more than eighty percent (80%) of the combined voting power
of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation or (y) a merger or consolidation
effected to implement a recapitalization of the Company (or similar
transaction) in which no "person" (as defined above in clause (I) acquires
more than fifty percent (50%) of the combined voting power of the Company's
then outstanding securities; or

               (iv) the shareholders of the Company approve an agreement for
the sale or disposition by the Company of all or substantially all of the
Company's assets or any transaction having a similar effect, or the Company,
directly or indirectly, begins proceedings to effect a complete liquidation.

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     7.  Miscellaneous.

         (a)  Governing Law. This Agreement shall be governed by the laws of
the State of New York, without regard to any conflicts of laws principles
thereof that would call for the application of the laws of any other
jurisdiction.

         (b)  Notice. Any notice, consent, request or other communication made
or given in connection with this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by registered or
certified mail, return receipt requested, to those listed below at their
following respective addresses or at such other address as each may specify by
notice to the others:

              To the Executive:

              Joseph A. Garcia
              14021 S.W. 67 Court
              Miami, Florida
              (305) 971-9261

              To the Company:

              Spanish Broadcasting System, Inc.
              2601 South Bayshore Drive
              Penthouse 2
              Coconut Grove, Florida 33133

              with a copy to:
              Jason L. Shrinsky, Esq.
              Kaye, Scholer, Fierman, Hays & Handler, LLP
              425 Park Avenue
              New York, New York 10022

         (c)  Entire Agreement; Amendment. This Agreement shall supersede any
and all existing agreements between the Executive and the Company or any of its
affiliates relating to the terms of the Executive's employment during the
Employment Term. It may not be amended except by a written agreement signed by
both parties.

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         (d)  Waiver. The failure of a party to insist upon strict adherence to
any term of this Agreement on any occasion shall not be considered a waiver
thereof or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Agreement.

         (e)  Assignment. Except as otherwise provided in this Section 9(e),
this Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective heirs, representatives, successors and assigns.
This Agreement shall not be assignable by the Executive, and shall be
assignable by the Company only to any corporation or other entity resulting
from the reorganization, merger or consolidation of the Company with any other
corporation or entity or any corporation or entity to or with which the
Company's business or substantially all of its business or assets may be sold,
exchanged or transferred, and it must be so assigned by the Company to, and
accepted as binding upon it by, such other corporation or entity in connection
with any such reorganization, merger, consolidation, sale, exchange or transfer
(the provisions of this sentence also being applicable to any successive such
transaction).

         (f)  Headings. Section headings are used herein for convenience of
reference only and shall not affect the meaning of any provision of this
Agreement.

         (g)  Rules of Construction. Whenever the context so requires, the use
of the masculine gender shall be deemed to include the feminine and vice versa,
and the use of the singular shall be deemed to include the plural and vice
versa.

         (h)  Arbitration. Any dispute or controversy arising out of, or
relating to this Agreement, shall be resolved by arbitration at the American
Arbitration Association ("AAA") at its New York City office before a panel of
three arbitrators under the then existing rules and regulations of the AAA. The
determination of the arbitrators shall be final and binding

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on the parties hereto and judgment on it may be entered in any court of
competent jurisdiction. In the event the Executive prevails in such
proceedings, as determined by the arbitration panel, the Company shall
reimburse the Executive for all expenses (including, without limitation,
reasonable legal fees and expenses) he incurred in connection with any such
proceeding. All such amounts shall be paid promptly but in any event within ten
(10) business days after the Executive provides the Company with a statement of
the amounts to be reimbursed. In all other cases, each party shall be
responsible for their own expenses incurred in connection with such
proceedings.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and year first above written.

                                       SPANISH BROADCASTING SYSTEM, INC.

                                       By: /s/ RAUL ALARCON, JR.
                                          ----------------------
                                               Raul Alarcon, Jr.

                                       JOSEPH GARCIA

                                          /S/ JOSEPH A. GARCIA
                                          -------------------------

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SCHEDULE A

Bonus:            To the extent that the projected broadcast cash flow target is
                  achieved by the Company, the Executive will be entitled to
                  receive a sum equal to two hundred thousand dollars ($200,000)
                  to be paid on a quarterly basis for every quarter that the
                  Company meets the projected cash flow target. Once the Bonus
                  is increased, the new annual bonus shall thereafter
                  constituted the "Bonus" for purposes of this Agreement.

Health Insurance: Health and dental insurance for the executive and family
                  under the current Company's plan.

Allowance:        $5,040 payable in monthly installments.

Car:              Lease for a S430 Mercedes Benz, renewable every four years.

                                       16<PAGE>   1
                                                                   Exhibit 10.47

                             EMPLOYMENT AGREEMENT

THIS AGREEMENT is made as of August 31, 2000 between Spanish Broadcasting
System, Inc., a corporation existing under the laws of Delaware with offices
located at 3191 Coral Way, Miami, Florida (SBS), and William B. Tanner
(hereinafter referred to as Employee), an individual whose principal place of
residence and mailing address is 4180 Lybyer Avenue, Coconut Grove, Florida
33133-6154.

                                   RECITALS

     WHEREAS, SBS is the owner/operator of certain Spanish-language radio
stations whose signals are broadcast throughout several U.S. metropolitan areas
(the Stations); and

     WHEREAS, SBS wishes to engage Employee, and Employee wishes to become
engaged to perform services for SBS as Executive Vice President of Programming
during the term of and pursuant to the terms and conditions set forth in this
Agreement;

     NOW THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties understand and agree as follows:

     1.  EMPLOYMENT. Employee shall be employed to perform services as
Executive Vice President of Programming reporting to Raul Alarcon, Jr.,
Chairman/CEO or a mutually agreed to designee and Employee shall have hiring
and firing authority over all programming personnel and final decision as to the
music played and programming within a programming format approved by Raul
Alarcon, Jr., or his designee over the SBS stations. Employee's services will
be rendered subject to and in accordance with, the direction, control, rules,
and regulations of SBS.

     2.  TERM. The term of this Agreement shall be from August 31, 2000 through
and including August 31, 2005. Beginning on September 1, 2004 but no later than
December 1, 2004 SBS and Employee agree to negotiate a mutually acceptable
extension of this contract.

     3.  COMPENSATION AND BENEFITS. See Compensation Rider.

     (a) BONUS. See Compensation Rider.

     (b) STOCK OPTIONS.

         Beginning on August 31, 2000 and provided Employee remains employed
by SBS on the respective date of grant, SBS shall grant to Employee an option
to purchase shares of SBS common stock at the market price on the immediately
preceding business date, in accordance with the schedule below. Each such
option shall be deemed vested on the date of grant and shall remain exercisable
by Employee for a period of five (5) years thereafter or for a period of sixty
(60) days after Employee's employment is terminated for any reason, whichever
occurs first, after which time all vested and unexercised grants and or options
shall be forfeited.
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          (a)  August 31, 2001 - 15,000 shares
          (b)  August 31, 2002 - 15,000 shares
          (c)  August 31, 2003 - 15,000 shares
          (d)  August 31, 2004 - 15,000 shares
          (e)  August 31, 2005 - 15,000 shares

Additionally, in compensation for stock options forfeited due to Employee's
termination of his employment with Hispanic Broadcasting Corporation, as
evidenced by Exhibits "A" and "B" of this Agreement, SBS does hereby grant
Employee an additional 218,552 options to purchase shares of SBS common stock
at the closing stock market price of September 1, 2000 and vesting 1/3 at the
signing of this Agreement, 1/3 on August 30, 2001 and 1/3 on August 30, 2002.
All such options are non-forfeitable, shall immediately vest, and shall be
exercisable for a period of sixty (60) days after Employee's termination, if
Employee's employment is terminated for any reason, other than with cause.

Each and every outstanding option under this Agreement shall become immediately
vested and fully exercisable in the event of a "Change of Control" at SBS or in
the event of the cancellation or withdrawal of the above options or any SBS
option plans. The term "Change in Control" is defined as: (a) a reorganization;
merger; consolidation; or other form of transaction, or series of transactions,
whereby the persons or entities owning more than 50% of the outstanding shares
of stock of SBS, no longer own 50% of the outstanding shares immediately after
such a transaction or series of transactions, or (b) a liquidation or
dissolution of SBS, or (c) the sale of all or substantially all of the assets
of SBS.

     (c)  BENEFITS. Employee shall be provided comparable health care coverage
and other benefits extended to other similarly situated SBS executives. The
Company shall provide Employee with the following; business class travel, (or
first class if business class is not available) payment of power and telephone
bill for the Los Angeles residence and an automobile allowance equal to
($2,000) Two Thousand Dollars per month, the professional support of a shared
administrative assistant and a (3) three week vacation per year. Employee may
continue his consulting relationship with radio stations WPOW-FM and WQAM-AM,
Miami, Florida and with the radio stations presently owned by COX BROADCASTING
in the Birmingham, Alabama market and at the sole discretion of Raul Alarcon,
Jr., President/CEO or a mutually agreed to designee of the radio stations
presently owned by COX BROADCASTING in the Long Island, New York market.

     (d)  EXPENSES. SBS shall reimburse Employee for reasonable business and
          entertainment expenses that he incurs subject to reasonable guidelines
          comparable with other similarly situated executives.
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         4.  COVENANTS.

         (a) COMPETITIVE ACTIVITY. During the term of this Agreement, and for a
period of twelve (12) months after the termination of this Agreement for any
reason, Employee shall not render services in any capacity for any radio
station in any area competitive with SBS or any of its Stations, whether as
on-air talent, host, producer of radio programs, program director or
consultant. Employee further agrees that during the term of this Agreement, and
for a period of twelve (12) months after the termination of this Agreement for
any reason, Employee shall not render services, directly or indirectly, for any
radio station competitive with any of SBS radio stations wherever located.

         (b)  SOLICITATION OR INTERFERENCE. During the term of this Agreement
or for a period of twelve (12) months after the earlier termination hereof by
either party for any reason (whichever period expires earlier), Employee shall
not:

              (I)  in any manner induce any employee, agent, representative,
customer, former customer, or any other person or concern, dealing with or in
some other way associated with SBS or its Stations, to terminate such dealings
or association nor;

              (ii) do anything, directly or indirectly, to interfere in any
fashion with such relationship between SBS or its Stations, on the one hand,
and any such person or concern, on the other.

         (c)  NON-DISCLOSURE OF PROPRIETARY INFORMATION. Employee shall not
disclose the trade secrets or confidential and proprietary information of SBS
or its Stations, whether during the employment term or thereafter. The parties
understand and agree, moreover, that nothing contained herein shall prevent
Employee form disclosing: (1) information required to be disclosed pursuant to
compulsory legal process, provided that Employee shall give SBS immediate
notice of such process prior to disclosure; (2) information which was in
Employee's lawful possession at the time of or prior to its submission to
Employee by SBS; or (3) information which is in the public domain.

         (d)  EMPLOYEE FIDELITY. Employee agrees that during the term of this
Agreement Employee will not, directly or through third-party intermediaries,
initiate or invite contact with, or solicit offers or proposals of employment
from, employers that compete with SBS or its stations, wherever located. Except
for contacts which may occur during the last 90 days of the term of this
Agreement, Employee expressly acknowledges that a breach of this covenant of
fidelity shall constitute grounds for termination for cause under Section 7.

         (e)  In any provision of this Section 4 is deemed invalid or
unenforceable, such provision shall be deemed modified and limited to the
extent necessary to make it valid and enforceable.
<PAGE>   4

        5.      PROPERTY RIGHTS. (a) All broadcasts, airchecks or recordings,
prerecorded or otherwise, of the programming of SBS's Stations commercials,
data, copy, written and recorded materials, as well as all recordings,
characters, personalities or "skits", if applicable, created by Employee during
his employment with SBS, including during the Term of this Agreement or any
Extension Term, including without limitation the Employee's work product, are
the exclusive property of SBS ("Property Rights"), SBS owns or shall own all
right, title and interest throughout the Universe in and to Employee's and SBS's
work product and all Copyright, Trademark and Other Intellectual Property Rights
in and related thereto ("Intellectual Property"). Material, characters,
personalities and skits created by or for Employee during his employment with
SBS may only be used by Employee during the Term or any Extension Term thereof.
All documents or other tangible property and concepts or inventions, including
Internet and other electronic media, relating in any way to the business of SBS
which are conceived or generated by Employee or come into Employee's possession
during or by virtue of his employment with SBS shall be and remain the property
of SBS. Employee must return all such documents and tangible property to SBS on
termination of this Agreement for any reason or at such earlier time as SBS may
request.

                        (b)     Employee acknowledges and agrees that Employee
is and has been retained by SBS to create work product and on a
work-made-for-hire basis for SBS. Insofar as the authorship and ownership of
all right, title and interest in and to any part of the work product and any
portion of the Intellectual Property are not deemed to vest in or be owned by
SBS as a work-made-for-hire or by operation of law or otherwise, Employee
agrees to and hereby does during the term assign, sell, transfer, grant and
convey to SBS (without the necessity of any further consideration,
documentation or further acts by either party) the entirety of whatever right,
title and interest Employee has in the Intellectual Property throughout the
Universe. At SBS's request, Employee shall execute any documents reasonably
required by SBS to confirm, establish, record, file applications for, renew or
maintain SBS's rights and ownership in the Intellectual Property worldwide and
will cooperate fully with SBS in connection with any or all of these efforts.

                        (c)     Employee waives any right and claim Employee may
have in any jurisdiction throughout the Universe in or to any moral rights or
rights of "droit moral" with respect to any portion of the Intellectual Property
and confirms that SBS shall have the right, in addition to other rights and
notwithstanding the termination of Employee's employment for any reason, to make
or have made and to own enhancement, derivative works and other modifications
to any part of the Intellectual Property.

                6.      NAME AND LIKENESS.

                        (a)     Use of Name and Likeness.

                        Employee hereby grants to SBS the irrevocable and
exclusive right (whether this Agreement expires in its normal course or is
terminated for any reason whatsoever) during the term of the Agreement
throughout the universe the right to use Employee's name, actual or simulated
likeness, nickname(s), character name(s), slogans, biography and other personal
identification in and in connection with the following uses:

                                (i)     Advertising, publicizing or otherwise
exploiting Employee's

<PAGE>   5

services hereunder, any program or other material in connection with which
Employee renders services hereunder, the results and proceeds of Employee's
services hereunder, and any rights granted to SBS hereunder; and

                                (ii)    Advertising, publicizing or otherwise
exploiting the name, product or services of SBS or any affiliate or any
successor, licensee or assign.

                                (iii)   Section 6(a) is not intended to alter,
compromise or limit in any way SBS's Property Rights as stated in Section 5
above.

                7.      NO OBLIGATION TO PRODUCE OR RELEASE. Notwithstanding any
other provision of this Agreement, SBS shall have no obligation to actually
utilize Employee's services or any of the results and proceeds thereof in any
Program or otherwise, or to produce or exploit any Program, or to exercise any
of the rights granted to SBS hereunder, or to continue any such use, exercise,
production or exploitation, if commenced. SBS's obligations to Employee under
this Agreement shall be fully performed by the payment to Employee of the
applicable compensation provided for in this agreement with respect to which SBS
has guaranteed Employee payment hereunder, subject to all of SBS's rights
hereunder.

                8.      RESOLUTION OF DISPUTES. Employee acknowledges and agrees
that the provisions of Section 4 are reasonable and necessary for protection of
SBS and that SBS will be irrevocably damaged if such provisions are not
specifically enforced. Accordingly, money damages from Employee's breach of
Section 4 would be difficult, if not impossible, to calculate and the most
appropriate relief in the event of Employee's breach would be injunctive relief.
Nothing contained herein shall be deemed to prohibit SBS, for any such breach,
from instituting or prosecuting any other proceeding in any court of competent
jurisdiction, in either law or equity, to obtain damages for any breach of this
Agreement. All remedies given to SBS by this Agreement shall be construed as
cumulative remedies and shall not be alternative or exclusive remedies. In the
event of a breach by Employee of Section 4, Employee agrees to pay to SBS all
costs and expenses, including reasonable attorney's fees, as may be expended by
SBS relative to said breach.

                9.      COMPLIANCE WITH SECTION 508 OF THE COMMUNICATIONS ACT
OF 1934. Employee shall comply with the provisions of Section 508 of the
Communications Act of 1934, as amended, in that he will not accept money or any
valuable consideration, including services, for the broadcast of any matter by
the Stations and in that he will promptly complete the Annual Statement and
Questionnaire and promptly return it to SBS. Without limiting SBS's right to
terminate for any other cause, SBS shall have the right, upon violation of this
provision by Employee, immediately to terminate this Agreement and Employee's
employment hereunder for cause.

                10.     TERMINATION.

                (a)     WITHOUT CAUSE. SBS may terminate this Agreement, without
cause and with prior notice, at any time in which event Employee shall receive
in a lump sum as liquidated damages the equivalent of (12) months' Base Salary
plus any Bonus earned to the date of notice of termination plus health benefits
per COBRA.

<PAGE>   6

                (b)     WITH CAUSE. SBS may terminate this Agreement for cause
at any time upon four (4) weeks prior notice or pay, less withholdings, in lieu
of notice. If Employee is terminated for cause, which shall include, but not be
limited to, termination resulting from (i) death of Employee (ii) misconduct by
Employee as described in (c) below; (iii) Employee disability which prevents
Employee from performing his duties hereunder for six (6) months in any one-year
period, he shall be entitled to only such compensation that has accrued up to
the date of termination and no more.

                (c)     Misconduct by Employee permitting termination for cause
hereunder shall include the following:

                        (i)     failure to comply with any of the terms and
conditions of this Agreement, to perform any reasonable duties assigned by SBS,
to follow any operating policies of SBS, any personnel policies of SBS
(Employee acknowledges having read and understood SBS's Employee policy manual),
to comply with any rule, regulation guideline or policy of the FCC or other
governmental agency with jurisdiction over SBS.

                        (ii)    repeated or sustained absences from the assigned
workplaces;

                        (iii)   conviction of any criminal offense, other than a
traffic violation or minor misdemeanor resulting in incarceration for less than
forty-eight (48) hours;

                        (iv)    any material act of dishonesty which creates or
has a negative effect on SBS

                        (v)     engaging in "payola" or "plugola" practices.

                        (vi)    use of illegal drugs or sustained alcohol abuse,
which is repeated and uncorrected.

                        (vii)   any intentional act that reflects unfavorably
and egregiously on the reputation of SBS.

                        11.     (a)     ASSIGNMENT. SBS shall be entitled to
assign this Agreement to any future licensee of SBS; provided, however, that
such future licensee must agree to be bound by the terms and conditions in this
Agreement. Employee may not assign his obligations under this Agreement.

                                (b)     NOTICE. Any notice or other
communication under this Agreement shall be in writing and shall be considered
given when mailed by registered or certified mail, return receipt requested or
by a reputable overnight courier or service (i.e., Federal Express) to the
parties at the address set forth below (or any other such address as one party
may specify by notice to the other).

        As to SBS:      Raul Alarcon, Jr.
                        SBS
                        3191 Coral Way
                        Miami, Florida 33134

<PAGE>   7

                With a copy to:
                Kaye, Scholer, Fierman, Hays & Handler, LLP
                425 Park Avenue
                New York, New York 10022
                Attention: William C. Zifchak, Esq.

As to
Employee:       4180 Lybyer Avenue,
                Coconut Grove, Florida 33133-6154.

        (c)  NO WAIVER. The failure of either party hereto to object to the
failure on the part of the other party to perform any of the terms, provisions,
or conditions of this Agreement or to exercise any option or remedy herein
given or to require at any time performance on the part of the other party of
any term, provision, or condition hereof, or any delay in doing so, or any
custom or practice of the parties at variance with the terms hereof, shall not
constitute a waiver or modification thereof or of any subsequent breach of the
same or a different nature nor affect the validity of this Agreement or any
part thereof nor the right of either party thereafter to enforce the same not
constitute a novation or laches.

        (d)  CONFORMITY TO LAW. If any one or more provisions of this Agreement
should ever be determined to be illegal, invalid, or otherwise unenforceable by
a court of competent jurisdiction or be invalid or invalidated or unenforceable
by reason of any law or statute, then to the extent and within the jurisdiction
invalid or unenforceable, it shall be limited, construed or severed and deleted
therefrom, and the remaining portions of this Agreement shall survive, remain in
full force and effect, and continue to be binding and shall not be affected and
shall be interpreted to give effect to the intention of the parties insofar as
that is possible.

        (e)  ATTORNEY'S FEES. In the event of any action involving this
Agreement, the prevailing party shall be entitled to reimbursement of its
reasonable attorney's fees and disbursements, in addition to any damages.

        (f)  HEADINGS. The Headings used in this Agreement are for the
convenience of the parties and for reference purposes only and shall not form a
part of or affect the interpretation of this Agreement.

        (g)  CONSTRUCTION. This Agreement shall be construed without regard to
any presumption or other rule requiring construction against the party causing
this Agreement to be drafted, since the attorneys for the respective parties
have submitted revisions to the text hereof.

        (h)  GOVERNING LAW. The validity of this Agreement, its interpretation
and any disputes arising from, or relating in any way to, this Agreement or the
relationship of the parties, shall be governed by the law of the State of
Florida without regard to conflicts of law principles.

        (i)  ENTIRE AGREEMENT. The Agreement shall constitute the entire
agreement concerning the subject matter hereof between the parties, superseding
all previous agreements, memoranda of understanding, negotiations, and
representations made prior to the effective date of this Agreement. This
Agreement shall be modified or amended only by written agreement executed

<PAGE>   8
by Employee and SBS.

        (j)  COUNTERPARTS AND FACSIMILE TRANSMISSIONS. This Agreement may be
executed simultaneously in one or more counterparts and in facsimile
transmission versions, each of which shall be deemed to be an original copy of
this Agreement and all of which together shall constitute one and the same
instrument.

        IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the day and year first written above.

SPANISH BROADCASTING SYSTEM, INC.

By: /s/ RAUL ALARCON                              /s/     [SIG]
   ------------------------------               -----------------------------
      Raul Alarcon, Jr.                                 Witness
      Chairman/CEO

    /s/ WILLIAM D. TANNER
   ------------------------------               -----------------------------
      William D. Tanner                                 Witness
      Employee

<PAGE>   9

                               COMPENSATION RIDER

             Base Salary:                 $475,000, per year, plus an
                                          annual 10% per year increase
                                          over the prior year's Base
                                          Salary.

                                          Additional Bonus:

                                          Employee shall be entitled to
                                          quarterly bonuses (for Stations
                                          Owned or LMA'd or TBA'd by
                                          SBS*), payable within 30 days
                                          from the date ratings are
                                          released, of:

             LOS ANGELES
                        a)  $25,000 whenever any SBS Los
             Angeles station achieves a #1 overall ranking (as published
             by Arbitron, 12+, 6:AM-12:MID, Mon.-Sun.) among the
             Spanish language stations in the market for each regularly
             published Arbitron radio audience survey.

                        b)  $15,000 whenever any SBS Los
             Angeles station achieves a #2 overall ranking (as published by
             Arbitron, 12+, 6:AM-12:MID, Mon.-Sun.) among the
             Spanish language stations in the market for each regularly
             published Arbitron radio audience survey.

                        c)  $15,000 per point increase per Arbitron
             survey book for KLAX-FM for each regularly published
<PAGE>   10
Arbitron radio audience survey.

          d) $10,000 per point increase per Arbitorn survey book for Class "A"
stations for each regularly published Arbitron radio audience survey.

          e) Same for additionally acquired or LMA stations depending on signal
strength for each regularly published Arbitron radio audience survey.

NEW YORK, CHICAGO, MIAMI

          a) $10,000 per point increase per Arbitron survey book for each
regularly published Arbitron radio audience survey.

PUERTO RICO, SAN ANTONIO, SAN FRANCISCO, DALLAS AND ALL FUTURE MARKETS

          a) $5,000 per point increase per Arbitron survey book for each
regularly published Arbitron radio audience survey.

* All increases are payable on a one-tenth of a point basis and are cumulative
taking into account increases and decreases from the commencement date of this
Agreement, which shall be deemed the base rate. All increases for new stations
are calculated from an initial audience base to be mutually determined. For
example, SBS station in Los Angeles is the #2 ranked Spanish station in
the market with a market share rating of 5.0 as of September 1, 2000, the
commencement date of the first
<PAGE>   11
contract year. Arbitron ratings are released on November 1, 2000 revealing a #1
Spanish ranking, and a 5.4 market share. By December 1, 2000, Employee will be
entitled to a $25,000.00 bonus under a) above, and $6,000.00 under c) above.
Arbitron ratings are released on February 1, 2001 revealing a #1 Spanish
ranking, and a 5.3 market share. By March 1, 2001, Employee will be entitled to
a $25,000.00 bonus under a) above, and $4,500.00 under c) above. Arbitron
ratings are released on May 1, 2001 revealing a #2 Spanish ranking, and a 5.1
market share. By June 1, 2001, Employee will be entitled to a $15,000.00 bonus
under a) above, and $1,500.00 under c) above. Arbitron ratings are released on
August 1, 2001 revealing a #2 Spanish ranking, and a 4.9 market share. By
September 1, 2001, Employee will be entitled to a $15,000.00 bonus under a)
above, and no bonus under c) above. Arbitron ratings are released on November
1, 2001 revealing a #2 Spanish ranking, and a 5.1 market share. By December 1,
2001, Employee will be entitled to a $15,000.00 bonus under a) above, and
$1,500 (based on 5.0 rating as of the commencement date of the Agreement)
under c) above.

<PAGE>   12
                  EXHIBIT "A"

No of Shares     Exercise Price     Vesting Date

41,875           4.36               Upon execution of Agreement
19,163           4.36               August 31, 2001
21,547           6.73               August 31, 2001
 1,165           7.78               August 31, 2001
20,340           7.78               August 31, 2002
21,534           12.23              August 31, 2002

<PAGE>   13
August 31, 2000

Mr. William B. Tanner
4180 Lyoyor Avenue
Coconut Grove, Florida 33133-6154

Dear Bill:

In conjunction with the Employment Agreement by and between Spanish
Broadcasting System, Inc. ("SBS") and William B. Tanner dated August 31, 2000,
("Agreement") this will serve to confirm our understanding as follows:

In the event that you were to be terminated from your present role as a
Consultant to WPOW-FM and / or WQAM-AM, Miami, Florida as a direct result of
your employment with SBS, we would compensate you in an amount equal to the
lost consulting fees from the WPOW-FM and / or WQAM-AM and at the same rate and
pay schedule as existing as of the date of this letter as of the date of said
termination.

At the same time you hereby agree that in such an event the Agreement and its
modification by this letter may be extended at the sole discretion of SBS under
the same terms and conditions contained in the Agreement and this letter until
August 31, 2007.

Sincerely,

/s/ RAUL ALARCON, JR.

Raul Alarcon, Jr.
Chairman / CEO

Accepted by and agreed to:

/s/ WILLIAM B. TANNER
----------------------
Mr. William B. Tanner
August 31, 2000
<PAGE>   14
EXHIBIT B

                            STOCK OPTION COMPARISON
                                AUGUST 18, 2000

                           REVISED SEPTEMBER 5, 2000

This document is hereby revised based on September 1, 2000, closing prices of
26-15/16 for Hispanic Broadcasting and 10 for Spanish Broadcasting.

HSP  = Hispanic Broadcasting
SBSA = Spanish Broadcasting

EP=Exercise
SP=Stock Price

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
HSP Grant Date      Shares Granted      Exercise Price      Net Value      % EP to SP       Parity SBSA shrs.      Exercise Price
----------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                 <C>            <C>              <C>                    <C>
June 6, 1997*           22,867               11.75           344,255         -66.38%               61,038                4.36
----------------------------------------------------------------------------------------------------------------------------------
June 4, 1998**           8,000               18.13            70,480         -32.70%               21,647                6.73
----------------------------------------------------------------------------------------------------------------------------------
March 23, 1999***        8,000               20.97            47,740         -22.15%               21,505                7.78
----------------------------------------------------------------------------------------------------------------------------------
May 25, 2000****         8,000               32.94           (48,020)        +22.26%               21,534               12.23
----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------
    TOTALS              46,867                                                                    125,624
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Values may be slightly disparate due to rounding.

*       Vesting 1/3 on each of the third, fourth, and fifth anniversaries of the
        Date of Grant

**      5,332 Nonstatutory Stock Options vesting 1/2 on the third and fourth
        anniversaries of the Date of Grant
        2,666 Incentive Stock Options vesting in full on the fifth anniversary
        of the Date of Grant

***     770 Nonstatutory Stock Options vesting on the third anniversary of the
        Date of Grant
        7,230 Incentive Stock Options vesting in installments of 2,462 and
        4,788 shares, respectively, on the fourth and fifth anniversaries of
        the Date of Grant

****    5,062 Nonstatutory Stock Options vesting in installments of 1,600
        shares, 1,600 shares, 1,600 shares, and 262 shares, respectively, on the
        first, second, third and fourth anniversaries of the Date of Grant
        2,938 Incentive Stock Options, vesting in installments of 1,338 shares
        and 1,600 shares, respectively, on the fourth and fifth anniversaries of
        the Date of Grant

<PAGE>   15

August 31, 2000

Mr. William B. Tanner
4180 Lybyer Avenue
Coconut Grove, Florida 33133-6154

Dear Bill:

In conjunction with the Employment Agreement by and between Spanish
Broadcasting System, Inc., ("SBS") and William B. Tanner dated August 31, 2000,
("Agreement") this will serve to confirm our understanding as follows:

In the event that the publicly traded stock of SBS were not to reach a level of
$12.12 on or before August 30, 2001, SBS with make a cash payment to you equal
to $ 484,226 thirty (30) days after said date.

Sincerely,

Raul Alarcon, Jr.
Chairman / CEO

Accepted by and agreed to:

/s/ WILLIAM B. TANNER
-----------------------
Mr. William B. Tanner
August 31, 2000

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