Document:

<PAGE>

                                                                    Exhibit 10.3

                            ASSET PURCHASE AGREEMENT

                                      Among

                         EL DORADO COMMUNICATIONS, INC.

                               EL DORADO 108, INC.

                               KXTJ LICENSE, INC.

                              LBI HOLDINGS II, INC.

                     LIBERMAN BROADCASTING OF HOUSTON, INC.

                                       and

                 LIBERMAN BROADCASTING OF HOUSTON LICENSE CORP.

                       RELATING TO THE ACQUISITION OF KEYH

                            Dated as of April 5, 2002

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                               TABLE OF CONTENTS

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ARTICLE I   DEFINITIONS .......................................................   2

     1.1    Definitions .......................................................   2

     1.2    Knowledge .........................................................   8

ARTICLE II  PURCHASE AND SALE OF ASSETS .......................................   8

     2.1    Assets to be Conveyed .............................................   8

     2.2    Excluded Assets and Liabilities ...................................   9

ARTICLE III PURCHASE PRICE; METHOD OF PAYMENT; ESCROW DEPOSIT .................  10

     3.1    Purchase Price ....................................................  10

     3.2    Liabilities Assumed ...............................................  11

     3.3    Escrow Deposit ....................................................  11

     3.4    Buyer's Remedies ..................................................  14

     3.5    Allocation ........................................................  14

     3.6    Prorations ........................................................  15

ARTICLE IV REPRESENTATIONS AND WARRANTIES BY SELLER ...........................  15

     4.1    Organization and Standing .........................................  15

     4.2    Authorization .....................................................  15

     4.3    KEYH FCC Licenses, Transmitters and Towers ........................  15

     4.4    Artlite Documents. ................................................  17

     4.5    Purchased Assets ..................................................  19

     4.6    Insurance .........................................................  19

     4.7    Litigation ........................................................  20

     4.8    Contracts .........................................................  20

     4.9    Insolvency ........................................................  20

     4.10   Reports ...........................................................  20

     4.11   No Defaults .......................................................  20

     4.12   Disclosures .......................................................  21

     4.13   Environmental Compliance ..........................................  21

     4.14   Intellectual Property .............................................  22

     4.15   Brokers ...........................................................  22

     4.16   Prepaid Expenses ..................................................  23
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                               TABLE OF CONTENTS
                                  (continued)

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     4.17   Sale Proceeds Recipients; Recipient Agreement .....................  23

ARTICLE V   REPRESENTATIONS AND WARRANTIES BY BUYER AND LBI HOLDINGS ..........  23

     5.1    Status ............................................................  23

     5.2    No Defaults .......................................................  23

     5.3    Authorization. ....................................................  24
..
     5.4    Brokers ...........................................................  24

     5.5    Qualification as a Broadcast Licensee .............................  24

     5.6    Litigation ........................................................  24

     5.7    Approvals and Consents ............................................  24

ARTICLE VI  COVENANTS OF SELLER ...............................................  25

     6.1    Affirmative Covenants of Seller ...................................  25

     6.2    Negative Covenants of Seller ......................................  27

ARTICLE VII ADDITIONAL AGREEMENTS .............................................  28

     7.1    Purchase of Station KEYH; Inquiry and Maintenance of Station KEYH..  28

     7.2    Application for Commission Consent; Other Consents; Pre-Closing....  29

     7.3    Mutual Right to Terminate .........................................  31

     7.4    Buyer's Right to Terminate ........................................  31

     7.5    Seller's Right to Terminate .......................................  32

     7.6    Risk of Loss ......................................................  32

     7.7    Transfer Taxes and FCC Filings; Expenses; Bulk Sales. .............  34

     7.8    Termination of KEYH Local Marketing Agreement. ....................  35

     7.9    Invoices. .........................................................  35

     7.10   Determination of KEYH Closing Date ................................  35

     7.11   Mutual Releases ...................................................  35

     7.12   Artlite. ..........................................................  35

     7.13   Recipient Agreement. ..............................................  36

     7.14   Auxiliary License Application. ....................................  36

     7.15   Further Estoppel Certificate. .....................................  36

ARTICLE VIII CLOSING CONDITIONS ...............................................  36
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                                TABLE OF CONTENTS
                                   (continued)

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     8.1    Conditions Precedent to Buyer's Obligations ......................   36

     8.2    Conditions Precedent to Seller's Obligations .....................   38

ARTICLE IX  ITEMS TO BE DELIVERED AT THE CLOSING .............................   39

     9.1    Seller's Performance At Closing ..................................   39

     9.2    Buyer's Performance at Closing ...................................   42

ARTICLE X   INDEMNIFICATION ..................................................   43

     10.1   Indemnification by Seller ........................................   43

     10.2   Indemnification by LBI Holdings and Buyer ........................   44

     10.3   Third-Party Claims ...............................................   44

     10.4   Cap and Basket ...................................................   45

     10.5   Holdback .........................................................   46

     10.6   Survival of Representations and Warranties .......................   46

ARTICLE XI  MISCELLANEOUS PROVISIONS .........................................   46

     11.1   Notices ..........................................................   46

     11.2   Benefit and Assignment ...........................................   47

     11.3   Other Documents ..................................................   48

     11.4   Appendices .......................................................   48

     11.5   Construction .....................................................   48

     11.6   Arbitration ......................................................   48

     11.7   Counterparts .....................................................   50

     11.8   Headings .........................................................   50

     11.9   Entire Agreement .................................................   50

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SCHEDULE I      Identification of Contracts to be Assumed

SCHEDULE II     List of all Permits and KEYH FCC Licenses

SCHEDULE III    List of Required Consents; Encumbrances; UCC Financing
                Statements; UCC Termination Statements

SCHEDULE IV     Identification of Items of Tangible Personal Property Described
                in Section 2.1.1

SCHEDULE V      Allocation of the Purchase Price

SCHEDULE VI     Insurance Coverage on the Purchased Assets

SCHEDULE VII    Identification of Intellectual Property

SCHEDULE VIII   Schedule of Prepaid Expenses

SCHEDULE IX     Sale Proceeds Recipients

SCHEDULE X      Information to be Periodically Provided to Buyer

EXHIBIT A       Seller Escrow Payment Certificate (AM Only)

EXHIBIT B-1     Opinion of Sellers' Counsel

EXHIBIT B-2     Opinion of Sellers' Texas Counsel

EXHIBIT C       Opinion of Sellers' FCC Counsel

EXHIBIT D       Opinion of LBI Entities' Counsel

EXHIBIT E       Exercise Purchase Right Notice

EXHIBIT F       Lessor Estoppel Certificates

EXHIBIT G       AM Local Marketing Agreement

EXHIBIT H       Forms of Required Consents

EXHIBIT I       Recipient Agreement

EXHIBIT J       Confidentiality

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                           AM ASSET PURCHASE AGREEMENT

          THIS AM ASSET PURCHASE AGREEMENT is dated as of April 5, 2002, and
made and entered into by and among El Dorado Communications, Inc., a California
corporation ("EDC"), El Dorado 108, Inc., a Texas corporation ("EDC Sub") and
KXTJ License, Inc., a Delaware corporation ("EDC License Sub"), on the one hand,
and LBI Holdings II, Inc., a California corporation ("LBI Holdings"), Liberman
Broadcasting of Houston, Inc., a California corporation ("LBI"), and Liberman
Broadcasting of Houston License Corp., a California corporation ("LBI Sub"), on
the other. EDC, EDC Sub and EDC License Sub are referred to collectively as
"Seller," and LBI and LBI Sub are referred to collectively as "Buyer."

                              W I T N E S S E T H:

          WHEREAS, Seller owns certain assets used or held for use in connection
with the operation of radio station KQQK, 107.9 FM, Beaumont, Texas ("Station
KQQK") and Seller owns, or has the rights to own and as of the KEYH Closing Date
will own, certain assets used or held for use in connection with the operation
of radio station KEYH, 850 AM, Houston, Texas ("Station KEYH") (each a "Station"
and, collectively, the "Stations") and Seller desires to sell and assign to
Buyer the Stations, the businesses of the Stations and their related assets, and
the licenses, permits and other authorizations issued by the Federal
Communications Commission (the "FCC" or "Commission") for or in connection with
the operation of Station KQQK (the "KQQK FCC Licenses") and for or in connection
with the operation of Station KEYH (the "KEYH FCC Licenses"; the KQQK FCC
Licenses and the KEYH FCC Licenses are collectively referred to herein as the
"FCC Licenses"); and

          WHEREAS, Seller has a right to purchase Station KEYH from Artlite
Broadcasting Company, a Texas corporation ("Artlite") pursuant to the Extension
of LMA and Purchase Rights Agreement effective as of January 31, 1997 by and
between EDC and Artlite (the "KEYH Extension Agreement"), the Agreement to
Purchase Radio Assets and Enter Into Local Marketing Agreement dated July 23,
1995 by and between EDC and Artlite (the "KEYH Purchase Agreement"), the
Agreement Regarding Deposit by and among Artlite, EDC and David Best (the "KEYH
Deposit Agreement") and Agreement to Extend Due Date for Deposit dated August 5,
1996 by and among Artlite, EDC and David Best (the "KEYH Deposit Extension
Agreement") and currently has the right to operate Station KEYH under the Time
Brokerage (Local Marketing) Agreement dated as of August 1, 1995 by and between
EDC and Artlite, as extended until January 31, 2004 pursuant to the KEYH
Extension Agreement (the "KEYH Local Marketing Agreement"); and

          WHEREAS, Seller has exercised such right to purchase Station KEYH from
Artlite pursuant to Section 7.1 of this Agreement so as to be able to sell and
assign to Buyer Station KEYH and Seller shall prior to the KEYH Closing Date use
its efforts as set forth in this Agreement to preserve and cause Artlite to
preserve the businesses of the Stations; and

          WHEREAS, LBI Sub desires to acquire the FCC Licenses and LBI desires
to acquire from Seller all the other assets relating to the Stations and
businesses related thereto; and

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          WHEREAS, the FCC Licenses may not be assigned to LBI Sub without the
prior written consent of the Commission; and

          WHEREAS, Buyer, Seller and LBI Holdings are concurrently entering into
the FM Asset Purchase Agreement of even date herewith (as amended, supplemented
or otherwise modified from time to time, the "FM Asset Purchase Agreement"); and

          WHEREAS, Buyer and Seller wish to consummate the transactions
contemplated hereby and the transactions contemplated by the FM Asset Purchase
Agreement concurrently for an aggregate purchase price (prior to adjustments) of
$30,000,001 but are, under certain circumstances, willing to consummate the
transactions contemplated by the FM Asset Purchase Agreement first and
thereafter seek to consummate the transactions contemplated hereby, in each case
in accordance with the terms of the FM Asset Purchase Agreement and this
Agreement.

          NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, the Parties, intending to be legally bound, agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

          1.1 Definitions. Unless otherwise stated in this Agreement, the
following terms shall have the following meanings:

          "Agreement" means this Asset Purchase Agreement, and references to
          "Articles," "Sections," "Schedules" and "Exhibits" are to the Articles
          and Sections of this Agreement and to the Schedules and Exhibits
          attached hereto.

          "AM Local Marketing Agreement" means the agreement by and between
          Seller and Buyer entered into concurrently with this Agreement
          attached as Exhibit G.

          "Artlite" has the meaning set forth in the recitals to this Agreement;
          provided, however, that, as it is unclear whether the actual, legal
          name of Artlite, as registered with the Secretary of State of the
          State of Texas prior to the forefeiture of Artlite's corporate status,
          was Artlite Broadcasting Company or Artlite Broadcasting Co., Inc.,
          all references in this Agreement shall refer to the entity known by
          either name or by a similar name, and the parties agree that all
          documents executed and delivered by the Parties on the KEYH Closing
          Date shall reference the name of the entity as reflected in the
          evidence provided by Seller to satisfy the requirements of Section
          8.1.7 of this Agreement.

          "Artlite Assets" means the Assets (as defined in Section 1A of the
          KEYH Purchase Agreement, as unamended, less any retirements made in
          the ordinary and usual course of Station KEYH's business and
          reasonable wear and tear excepted) and any other Tangible Personal
          Property or Intellectual Property owned by Artlite in connection with
          Station KEYH.

          "Artlite Documents" means (1) the KEYH Purchase Agreement, (2) the
          KEYH Local Marketing Agreement, (3) the KEYH Extension Agreement, (4)
          Lease

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          Agreement dated August 1, 1995, by and between D.M. Best Co., Inc., as
          Lessor, and El Dorado Communications, Inc., as Lessee, as superseded
          by a Lease Agreement dated August 1, 1995, by and between All Media
          Properties, Inc., as Lessor, and El Dorado Communications, Inc., as
          Lessee, (5) the KEYH Deposit Agreement, (6) the KEYH Deposit Extension
          Agreement, (7) the Modification Agreement dated April 4, 2002, by and
          between EDC and Artlite (the "KEYH Modification Agreement"), (8) the
          KEYH Assignment Application, (9) one or more bills of sale executed by
          Artlite conveying to Seller the Artlite Assets, (10) an assignment
          assigning from Artlite to Seller the KEYH FCC Licenses to document the
          first step of a two-step pass through of such FCC Licenses to LBI Sub,
          (11) the Confirmation of Lease Terms and Consent dated April 4, 2002,
          by and between EDC and Artlite, (12) the Confirmation of Lease Terms
          and Consent by and between EDC and Artlite to be delivered by Artlite
          to EDC and LBI in the form agreed upon by EDC and Artlite on April 4,
          2002, and (13) any other agreement, document or instrument executed by
          Artlite or any of its affiliates in connection with this Agreement or
          the transactions contemplated hereby, a copy of which has been
          delivered to Buyer prior to the KEYH Closing Date.

          "Artlite Entities" has the meaning set forth in Section 4.4.

          "Assumed Contracts" means only (i) those Contracts listed on Schedule
          I, (ii) any other Contract which LBI specifically agrees in writing to
          assume in connection with this Agreement in its sole discretion, and
          (iii) those Contracts entered into by Seller in the ordinary course of
          business between the date hereof and the KEYH Closing Date which LBI
          specifically agrees in writing to assume in connection with this
          Agreement in its sole discretion.

          "Buyer" has the meaning set forth in the first paragraph of this
          Agreement.

          "Closing Place" means the offices of O'Melveny & Myers LLP, 400 South
          Hope Street, 15th Floor, Los Angeles, California 90071, or such other
          place mutually agreed to in writing by the Parties.

          "Commission" has the meaning set forth in the recitals hereto.

          "Communications Act" means the Communications Act of 1934, as amended,
          or any successor statute or statutes thereto, and all rules,
          regulations, published policies and published decisions of the FCC
          thereunder, in each case as from time to time in effect.

          "Contracts" means any agreement, written or oral, between Seller or
          Artlite and any third party related to Station KEYH that creates a
          right or obligation for either side to make payment or provide goods
          or services or otherwise grants rights or creates obligations,
          including but not limited to advertising contracts and sales orders.

          "Damages" means any and all claims, demands, liabilities, obligations,
          actions suits, proceedings, losses, damages, costs, expenses,
          assessments, judgments,

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          recoveries and deficiencies, including interest, penalties and
          reasonable attorneys' fees, of every kind and description, contingent
          or otherwise.

          "EDC," "EDC License Sub" and "EDC Sub" have the meanings specified in
          the first paragraph of this Agreement.

          "Effective Date" shall have the meaning assigned to such term in the
          AM Local Marketing Agreement.

          "Encumbrance" means any option, pledge, security interest, lien,
          charge, mortgage, claim, debt, liability, obligation, encumbrance or
          restriction (whether on voting, sale, transfer or disposition),
          whether imposed by agreement, understanding, law, rule or regulation,
          and, with respect to real property assets, including the Transmitter
          Buildings and Towers, means any leases, licenses or other occupancy
          agreements relating thereto or covering any portion thereof or any
          liens or encumbrances existing with respect to Artlite's or Seller's
          interest under such documents.

          "Escrow Agent" means Union Bank of California, N.A.

          "Escrow Agreement" means the Corporate Custodial Agreement Relating to
          Earnest Money to be executed by the Escrow Agent, LBI Holdings and EDC
          concurrently with the Recipient Agreement.

          "Escrow Deposit" has the meaning set forth in Section 3.3.

          "Escrow Deposit Reduction Event" has the meaning set forth in Section
          3.3.2

          "Excluded Assets" has the meaning set forth in Section 2.2.1.

          "FCC" has the meaning set forth in the recitals hereto.

          "FCC Licenses" has the meaning set forth in the recitals hereto.

          "FM Asset Purchase Agreement" has the meaning set forth in the
          recitals to this Agreement, and references to "Articles," Sections,"
          "Schedules" and "Exhibits" thereto are to the Articles and Sections of
          the FM Asset Purchase Agreement and to the Schedules and Exhibits
          attached thereto.

          "FM Only Closing" has the meaning set forth in the FM Asset Purchase
          Agreement.

          "Hazardous Substance" has the meaning set forth in Section 4.13.

          "Holdback" has the meaning set forth in the FM Asset Purchase
          Agreement.

          "Holdback Escrow Agent" shall mean Bank of America, JP Morgan Chase,
          Citibank or Bank of New York, provided such financial institution
          accepts the

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          Holdback Escrow Agreement in the form attached to the FM Asset
          Purchase Agreement, with such changes as mutually agreed to by Buyer
          or Seller, or, if none of the listed entities so accepts, Union Bank
          of California, N.A.

          "Holdback Escrow Agreement" means the Corporate Custodial Agreement
          Relating to Holdback dated on or about the KQQK Closing Date executed
          by the Holdback Escrow Agent, LBI Holdings and EDC pursuant to the FM
          Asset Purchase Agreement.

          "HSRA" means the Hart-Scott-Rodino Antitrust Improvement Act of 1976,
          as amended, and the regulations thereunder, as in effect from time to
          time.

          "Indemnified Party" and "Indemnifying Party" have the meanings
          specified in Section 10.3.

          "Initial Grant" means the Commission's written consent to the
          assignment of the KEYH FCC Licenses to LBI Sub pursuant to the KEYH
          Assignment Application (including without limitation, by the Media
          Bureau by delegated authority), without any conditions materially
          adverse to any Party.

          "Intellectual Property" has the meaning set forth in Section 4.14.1.

          "KEYH Assignment Application" means the application which Seller and
          Artlite filed on or about April 4, 2002 with the Commission, and any
          amendments thereto, requesting its written consent to the assignment
          of the KEYH FCC Licenses (i) in the absence of any objection by the
          Commission to the form of the transaction, from Artlite through Seller
          to LBI Sub and (ii) in the event of any objection by the Commission to
          the form of the transaction, from Artlite to LBI Sub in accordance
          with Section 7.2.1, which application, shall, in either case, be in
          form and substance reasonably satisfactory to Buyer and Seller.

          "KEYH Closing Date" means the date as determined pursuant to Section
          7.10.

          "KEYH Deposit Agreement" has the meaning set forth in the recitals to
          this Agreement.

          "KEYH Deposit Extension Agreement" has the meaning set forth in the
          recitals to this Agreement.

          "KEYH Extension Agreement" has the meaning set forth in the recitals
          to this Agreement.

          "KEYH FCC Licenses" has the meaning set forth in the recitals to this
          Agreement.

          "KEYH Final Grant Day" means the date on which the Initial Grant has
          become a final order, which date shall be the forty-first day
          following issuance by the Commission of a public notice announcing the
          Initial Grant, unless the Initial

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          Grant has during the preceding forty-day period become subject to any
          administrative or judicial stay, appeal, review, reconsideration or
          rehearing, in which case the KEYH Final Grant Day shall not be deemed
          to occur until such administrative or judicial stay, appeal, review,
          reconsideration or rehearing shall have been resolved by a final,
          unappealable order (by the Commission or by a court of competent
          jurisdiction if Buyer elects to seek judicial review of any final
          order by the Commission) which preserves intact the Initial Grant
          without any conditions materially adverse to any Party.

          "KEYH Local Marketing Agreement" has the meaning set forth in the
          recitals to this Agreement.

          "KEYH Purchase Agreement" has the meaning set forth in the recitals to
          this Agreement.

          "KQQK Assignment Application" has the meaning set forth in the FM
          Asset Purchase Agreement.

          "KQQK Closing Date" has the meaning set forth in the FM Asset Purchase
          Agreement.

          "KQQK FCC Licenses" has the meaning set forth in the recitals to this
          Agreement.

          "LBI," "LBI Holdings" and "LBI Sub" have the meanings specified in the
          first paragraph of this Agreement.

          "Letter of Intent" shall mean that Letter Agreement dated January 17,
          2002 by and among EDC and Liberman Broadcasting, Inc., a California
          corporation and an indirect wholly owned subsidiary of LBI Holdings,
          as extended from time to time.

          "Party" means any of EDC, EDC Sub, EDC License Sub, LBI Holdings, LBI
          or LBI Sub, as the context requires, and the term "Parties" mean all
          such entities; provided, however, that Seller, on the one hand, and
          LBI Holdings and Buyer, on the other, shall each be considered a
          single Party for purposes of Sections 7.4, 7.5, 10.3 and 10.4.

          "Permits" means the licenses, permits, approvals, authorizations,
          consents, and orders of any federal, state or local governmental
          authority held by Artlite or Seller in connection with the operation
          of the Station KEYH (including the KEYH FCC Licenses) and all pending
          requests and applications therefor, including without limitation those
          listed on Schedule II.

          "Proceeds" has the meaning set forth in Section 7.6.1.

          "Purchased Assets" has the meaning set forth in Section 2.1.

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<PAGE>

          "Purchase Price" has the meaning set forth in Section 3.1.

          "Recipient Agreement" shall mean an agreement substantially in the
          form attached as Exhibit I.

          "Required Consents" means the FCC consents to the assignment of the
          KEYH FCC Licenses and the other governmental consents, third-party
          consents, approvals or waivers in form and substance satisfactory to
          Buyer, necessary for Seller to sell, convey or otherwise sell or
          assign the Purchased Assets to Buyer and for Artlite to sell, convey
          or otherwise sell or assign the Assets (as defined in Section 1A of
          the KEYH Purchase Agreement, as unamended) to Seller and/or Buyer,
          including without limitation those consents set forth on Schedule III.

          "Sale Proceeds Recipients" shall mean Seller and the other entities
          and persons listed on Schedule IX.

          "Seller" has the meaning set forth in the first paragraph of this
          Agreement.

          "Seller Escrow Payment Certificate (AM Only)" shall mean a certificate
          from an executive officer of Seller in the form of Exhibit A attached
          hereto, instructing the Escrow Agent to distribute a portion of the
          Escrow Deposit to Seller.

          "Seller Escrow Payment Certificate(FM Only)" has the meaning set forth
          in the FM Asset Purchase Agreement.

          "Simultaneous Closing" has the meaning set forth in the FM Asset
          Purchase Agreement.

          "Simultaneous Closing Date" has the meaning set forth in the FM Asset
          Purchase Agreement.

          "Station KQQK", "Station KEYH", "Station" and "Stations" have the
          meanings set forth in the recitals hereto.

          "Tangible Personal Property" has the meaning set forth in Section
          2.1.1.

          "Towers" means the radio broadcast towers located at the applicable
          Transmitter Site upon which is located broadcast antenna for Station
          KEYH.

          "Transaction and Wind Down Expenses" means the costs and expenses
          incurred by Seller in connection with the transactions contemplated by
          this Agreement, or in connection with the wind down of the business of
          Seller after the consummation of the transactions contemplated by this
          Agreement.

          "Transaction Claims" has the meaning set forth in Section 11.6.

          "Transmitter Buildings" means the transmitter buildings located at the
          Transmitter Sites.

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<PAGE>

          "Transmitter Sites" means the transmitter and antenna sites located at
          Ft Bend County, Texas (KEYH).

          1.2   Knowledge. The term "knowledge," as it relates to an individual,
shall mean that such individual will be deemed to have knowledge of a particular
fact or other matter if (a) such individual is actually aware of such fact or
other matter; or (b) a prudent individual could be expected to discover or
otherwise become aware of such fact or other matter in the course of conducting
a reasonably comprehensive investigation concerning the existence of such fact
or matter. The term "knowledge," as it relates to a Party or any other person or
entity (other than an individual) shall mean that such Party or such other
person or entity will be deemed to have knowledge of a particular fact or other
matter if any individual who is serving, or who has at any time served during
the twelve months prior to the date of this Agreement, as a director, officer,
partner, executor, trustee, or any other managerial employee of such Party or
such other person or entity (or in any similar capacity) has, or at any time
had, "knowledge" of such fact or other matter.

                                   ARTICLE II
                          PURCHASE AND SALE OF ASSETS

          2.1   Assets to be Conveyed. On the KEYH Closing Date at the Closing
Place, (i) Seller will (or will cause Artlite through Seller, as the case may
be, to) sell, assign, convey, transfer and deliver to LBI Sub the KEYH FCC
Licenses and the Permits, and all applications therefor, together with any
renewals, extensions, additions or modifications thereof, and (ii) Seller will
sell, assign, convey, transfer and deliver to LBI the business of Station KEYH
and, all of Seller's right, title and interest in and to the assets, properties
and rights described below (which, together with the KEYH FCC Licenses and the
Permits and applications therefor, are collectively referred to as the
"Purchased Assets"), such sale, assignment, conveyance, transfer and delivery to
be made by instruments of conveyance in form reasonably satisfactory to Buyer
and to be free and clear of all Encumbrances. The Purchased Assets include the
following:

          2.1.1 All tangible personal property, furniture, fixtures,
          improvements and office equipment and other equipment used or useful
          in the operation of Station KEYH, including all furniture and
          inventory in the Transmitter Buildings, the transmitter facilities,
          all Towers, antennas, main and back-up transmitters and generators,
          STL's, data links for transmitter telemetry, wireless microphone and
          other equipment and tangible personal property located or otherwise
          intended for use at the Transmitter Sites, listed on Schedule IV,
          together with any replacements thereof or additions thereto made
          between the date hereof and the KEYH Closing Date, less any
          retirements made in the ordinary and usual course of Station KEYH's
          business (collectively, together with all tangible personal property
          described in Sections 2.1.4 and 2.1.6, the "Tangible Personal
          Property");

          2.1.2 All prepaid expenses made by Seller, advance payments by
          advertisers to Seller for advertising that would run after the KEYH
          Closing Date and other

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          advance payments by third parties for services to be provided by or
          for Station KEYH after the KEYH Closing Date, in each case under the
          Assumed Contracts;

          2.1.3 The Assumed Contracts and all of Seller's rights thereunder
          relating to periods and events occurring on and after the KEYH Closing
          Date;

          2.1.4 Such files, records and logs pertaining to the operation of
          Station KEYH as Buyer may reasonably require, including Station KEYH's
          public inspection files and other records relating to the KEYH FCC
          Licenses and other filings with the Commission and such sales records
          and other sales and traffic information that may exist relating to
          Station KEYH for the two year period prior to the date of the
          Agreement and copies of all sales orders, invoices, contracts,
          statements and station logs for such period, but excluding the
          corporate and accounting records of Seller to the extent not described
          above (it being understood by the Parties that Seller shall transfer
          the data pertaining to the operation of the Station KEYH (including
          without limitation the data resident in Seller's Great Plains and ABC
          Traffic Software) on the computer systems of Seller to the computer
          systems of Buyer) (notwithstanding this conveyance, Buyer agrees to
          allow Seller reasonable access to such records of Station KEYH as
          Seller may reasonably require from and after the KEYH Closing Date);

          2.1.5 All Intellectual Property; and

          2.1.6 To the extent not included above, all of the Artlite Assets.

          2.2   Excluded Assets and Liabilities.

          2.2.1 Excluded Assets. It is understood and agreed that the Purchased
          Assets do not include any assets of Seller that are not used in the
          operation of Station KEYH, intellectual property rights not related to
          the existing station format, the name El Dorado, cash (other than the
          amounts described in Section 2.1.2), cash equivalents, deposits made
          by Seller under any contracts (other than the amounts described in
          Section 2.1.2), accounts receivable of Seller not accruing under the
          AM Local Marketing Agreement, causes of action, tax refunds, insurance
          claims or proceeds, in each case (for such accounts receivable, causes
          of action, tax refunds and insurance claim and proceeds) accruing
          prior to the closing of the transactions contemplated hereby, claims
          of Seller which accrue under this Agreement (and not accruing under
          the AM Local Marketing Agreement), personal art work of shareholders
          of EDC at the office buildings relating to Station KEYH and excess
          studio and excess transmission equipment not used in the operation of
          Station KEYH, nor do they include the assets of any pension or other
          employee benefit plans nor any other assets specifically excluded from
          the Purchased Assets by the provisions of this Agreement (all the
          foregoing of which are referred to as the "Excluded Assets").

          2.2.2 Liabilities Not Assumed. Except for the liabilities and
          obligations specifically assumed pursuant to Section 3.2, Buyer and
          LBI Holdings will not

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<PAGE>

          assume and will not be or become liable for, any liabilities or
          obligations of Seller or Artlite of any kind or nature whatsoever,
          whether absolute, contingent, accrued, known or unknown, related to
          the ownership of the Purchased Assets, the Excluded Assets, the
          operation of Station KEYH, (including without limitation, Seller's
          actions in operating Station KEYH under the AM Local Marketing
          Agreement but excluding Buyer's actions in operating Station KEYH
          under the AM Local Marketing Agreement) or Seller's or Artlite's
          employees or otherwise.

                                  ARTICLE III
                PURCHASE PRICE; METHOD OF PAYMENT; ESCROW DEPOSIT

          3.1   Purchase Price. Subject to Section 7.6.3, the purchase price to
be paid to Seller by Buyer for the Purchased Assets will be Seven Million
Dollars ($7,000,000) plus the aggregate amount of prepaid expenses made by
Seller for services to be provided to Station KEYH after the KEYH Closing Date
under the Assumed Contracts as set forth on Schedule VIII less any accrued
liabilities agreed to be assumed by Buyer, other than liabilities assumed
pursuant to and to the extent set forth in Section 3.2 (the "Purchase Price").

          3.1.1 Payment of Purchase Price. Subject to the terms and conditions
          set forth in this Agreement, on the KEYH Closing Date, LBI Holdings or
          Buyer will pay the Seller an amount equal to the Purchase Price, by
          wire transfer of immediately available funds in accordance with wire
          transfer instructions to be provided by Seller to Buyer not less than
          three business days prior to the KEYH Closing Date, it being
          understood and agreed that the Holdback deposited pursuant to the
          Holdback Escrow Agreement entered into pursuant to the FM Asset
          Purchase Agreement, less any distributions made to Seller pursuant to
          the Holdback Escrow Agreement, shall secure the indemnification
          obligations of Seller under Article X hereof, any other obligations of
          Seller under this Agreement, obligations of Seller under Article X of
          the FM Asset Purchase Agreement and any other obligations of Seller
          thereunder.

          3.1.2 Release of Escrow Deposit. Also on the KEYH Closing Date,
          concurrently with the wire transfer of the Purchase Price to Seller,
          EDC and LBI Holdings shall (i) if the KEYH Closing Date is a
          Simultaneous Closing Date, comply with Section 3.1.2 of the FM Asset
          Purchase Agreement and (ii) otherwise, jointly execute and deliver to
          the Escrow Agent written instructions to terminate the Escrow
          Agreement and deliver the entire Escrow Deposit then remaining to LBI
          Holdings.

          3.1.3 Post-Closing Proration. Following the KEYH Closing Date, the
          Parties shall determine and make the prorations called for in Section
          3.6.

          3.1.4 Holdback.

     (a)  Subject to the terms and conditions set forth in the FM Asset Purchase
     Agreement, LBI Holdings or Buyer shall on the KQQK Closing Date deposit the

                                       10

<PAGE>

     Holdback with the Holdback Escrow Agent pursuant to the Holdback Escrow
     Agreement. The Holdback will be held, maintained, administered and
     disbursed by the Holdback Escrow Agent in accordance with the terms and
     provisions hereof, of the FM Asset Purchase Agreement and of the Holdback
     Escrow Agreement, with the terms of the Holdback Escrow Agreement
     controlling in the event of any conflict.

     (b)  LBI Holdings and/or Buyer will submit claims to Seller by a written
     notice specifying the amount of the claim (or estimated amount if the claim
     is not reasonably quantifiable) and describing in reasonable detail the
     basis for the claim; provided that any such claims relating to this
     Agreement may only be made after the KEYH Closing Date. If Seller does not
     notify LBI Holdings or Buyer, as the case may be, within 15 days after
     receiving such a notice of Seller's objection to the claim, LBI Holdings
     and EDC shall at the end of such 15 day period execute and deliver to
     Holdback Escrow Agent joint written instructions to deliver to Buyer from
     the Holdback an amount equal to the claimed amount, as determined in
     accordance with this Section 3.1.4. If Seller gives notice of objection to
     LBI Holdings or Buyer, as the case may be, within the 15-day period, and
     the Parties cannot reach agreement on the claim, LBI Holdings and EDC shall
     at the end of such 15 day period execute and deliver to Holdback Escrow
     Agent joint written instructions to deliver to Buyer from the Holdback an
     amount equal to the amount not in dispute, and the Parties will attempt in
     good faith to agree upon the amount in dispute. If the Parties cannot agree
     within thirty (30) days thereafter, the Parties will submit such dispute to
     arbitration, as provided for in Section 11.6. Within three business days of
     (i) reaching resolution of such dispute as to the amount (if any) that LBI
     Holdings and Buyer are entitled to (in the event that the parties reach
     resolution without submitting such dispute to arbitration), or (ii) an
     arbitrator determining the amount (if any) that LBI Holdings and Buyer are
     entitled to (in the event that such dispute is submitted to arbitration),
     LBI Holdings and EDC shall execute and deliver to Holdback Escrow Agent
     joint written instructions to deliver to Buyer from the Holdback an amount
     equal to such applicable amount. The failure to give notice of a claim
     hereunder will not constitute an election of remedies and will not limit
     LBI Holdings or Buyer in any manner in the enforcement of other remedies
     that may be available to it.

          3.2 Liabilities Assumed. As of the KEYH Closing Date, Buyer will
assume and agree to pay, discharge and perform insofar as they relate to the
time period on and after the KEYH Closing Date, and arise out of events
occurring on or after the KEYH Closing Date, all the obligations and liabilities
of Seller under the Assumed Contracts.

          3.3 Escrow Deposit. Concurrently with the execution and delivery of
the Recipient Agreement by Seller and the top eight entities listed on Schedule
IX, LBI Holdings will deposit pursuant to this Section 3.3 and pursuant to
Section 3.3 of the FM Asset Purchase Agreement One Million Five Hundred Thousand
Dollars ($1,500,000) under the Escrow Agreement (together with any interest
accrued on such amount, the "Escrow Deposit"). The Escrow Deposit will be held,
maintained, administered and disbursed by the Escrow Agent in accordance with
the terms and provisions hereof, of the FM Asset Purchase Agreement and of the
Escrow Agreement, with the terms of the Escrow Agreement controlling in the
event of any conflict. Once deposited, the Escrow Deposit will be disbursed as
follows:

                                       11

<PAGE>

          3.3.1  Notification of Escrow Agent; Delivery of Seller Escrow Payment
          Certificate (AM Only). Within three business days of the occurrence of
          the KEYH Final Grant Day, Seller shall notify Escrow Agent in writing,
          with a copy to Buyer, of the occurrence of the KEYH Final Grant Day.
          Seller agrees not to deliver to the Escrow Agent the Seller Escrow
          Payment Certificate (AM Only) unless it simultaneously delivers to LBI
          Holdings such certificate.

          3.3.2  Delivery to Seller. In the event that an FM Only Closing has
          occurred and $1,000,000 of the Escrow Deposit (together with accrued
          interest thereon) has been returned to LBI Holdings in connection
          therewith or in the event that $1,000,000 of the Escrow Deposit
          (together with accrued interest thereon) has been distributed to
          Seller pursuant to a Seller Escrow Payment Certificate (FM Only) (as
          defined in the FM Asset Purchase Agreement) (either event being
          referred to herein as the "Escrow Deposit Reduction Event"), if Buyer
          fails to consummate the purchase and sale contemplated by this
          Agreement under circumstances that would constitute a material breach
          of this Agreement and Seller is not then in breach of its
          representations, warranties or covenants hereunder in any material
          respect (it being understood and agreed by the Parties hereto that for
          purposes of this Section 3.3.2, that for purposes of determining such
          breach of Seller's representations, warranties and covenants, all
          knowledge qualifications in the representations and warranties of
          Seller contained in this Agreement or in any certificates delivered
          pursuant hereto that are in parenthetical (including without
          limitation such knowledge qualifications in Sections 4.3.1, 4.3.2,
          4.3.3, 4.3.4, 4.3.5, 4.4, 4.5, 4.7, 4.9, 4.10, 4.11, 4.13, 4.14, 4.15,
          4.17, 4.18 and 9.1.10) shall be disregarded and no such representation
          or warranty shall be qualified in any respect by such knowledge
          qualifications in parenthetical), then, subject to the satisfaction of
          the conditions set forth below, $500,000 plus any associated accrued
          interest of the Escrow Deposit, will be delivered to Seller on the
          ninth business day after the KEYH Final Grant Day, it being understood
          and agreed that payment to Seller of $500,000 plus any associated
          accrued interest of the Escrow Deposit (and, if applicable, the
          amounts described in the second-to-last sentence of the last paragraph
          of this Section 3.3.2) (or, prior to the Escrow Deposit being made,
          payment to Seller of $500,000) will constitute full payment for any
          and all damages suffered by Seller by reason of LBI Holdings' or
          Buyer's failure to consummate the purchase and sale contemplated by
          this Agreement. Conditions to such delivery of $500,000 plus any
          associated accrued interest of the Escrow Deposit to Seller on such
          day will be that (a) the Escrow Deposit Reduction Event shall have
          occurred, (b) the Escrow Agent and LBI Holdings shall have received on
          the sixth business day after the KEYH Final Grant Day at or prior to
          5:00 PM (California time) (with a copy by e-mail to Lenard Liberman at
          e-mail lliberman@lbimedia.com and by fax and e-mail to Joe Kim at fax
          (213) 430-6407 and e-mail jkim@omm.com and Steve Chen at fax (213)
          430-6407 and e-mail schen@omm.com) a duly executed Seller Escrow
          Payment Certificate (AM Only) substantially in the form of Exhibit A
          annexed hereto, and (c) the Escrow Agent shall not have received from
          LBI Holdings or Buyer a written challenge challenging the accuracy of
          such Seller Escrow Payment Certificate (AM Only) at or prior to 5:00
          PM (California time) of the

                                       12

<PAGE>

          second business day after receipt by both LBI Holdings and the Escrow
          Agent of such Seller Escrow Payment Certificate (AM Only).

               THE PARTIES ACKNOWLEDGE AND AGREE IN ADVANCE BY INITIALING THIS
          AGREEMENT IN THE SPACES PROVIDED [LBI HOLDINGS' INITIALS ________,
          BUYER'S INITIALS ________ AND ________, AND SELLER'S INITIALS
          _________, _______ AND ________], THAT THE ACTUAL DAMAGES THAT SELLER
          WOULD SUFFER AS A RESULT OF BUYER'S FAILURE TO CONSUMMATE THE PURCHASE
          AND SALE OF THE PURCHASED ASSETS WOULD BE EXTREMELY DIFFICULT OR
          IMPOSSIBLE TO CALCULATE; THAT THE FULL AMOUNT OF $500,000 PLUS
          ASSOCIATED ACCRUED INTEREST OF THE ESCROW DEPOSIT (OR, PRIOR TO THE
          ESCROW DEPOSIT BEING MADE, $500,000) IS A FAIR AND EQUITABLE AMOUNT TO
          REIMBURSE SELLER FOR ANY DAMAGES WHICH THE PARTIES ESTIMATE MAY BE
          SUSTAINED BY SELLER DUE TO BUYER'S FAILURE TO CONSUMMATE THE PURCHASE
          AND SALE OF THE ASSETS DESCRIBED IN THIS AGREEMENT UNDER THE
          CIRCUMSTANCES STATED IN THIS SECTION 3.3; AND THAT THIS SECTION 3.3
          SHALL CONSTITUTE A LIQUIDATED DAMAGES PROVISION, WHICH DAMAGES WILL BE
          SELLER'S SOLE REMEDY HEREUNDER IN THE EVENT OF LBI HOLDINGS' OR
          BUYER'S FAILURE TO CONSUMMATE THE PURCHASE AND SALE OF THE ASSETS
          DESCRIBED IN THIS AGREEMENT UNDER THE CIRCUMSTANCES STATED IN THIS
          SECTION 3.3. IN THE EVENT THAT LBI HOLDINGS OR BUYER PROVIDES ESCROW
          AGENT A WRITTEN CHALLENGE CHALLENGING THE ACCURACY OF THE SELLER
          ESCROW PAYMENT CERTIFICATE (AM ONLY) AND A DISPUTE OVER THE
          DISBURSEMENT OF $500,000 PLUS ASSOCIATED ACCRUED INTEREST OF THE
          ESCROW DEPOSIT ARISES THEREFROM, SUCH DISPUTE SHALL BE RESOLVED IN
          ACCORDANCE WITH SECTION 11.6. IF THE ARBITRATOR FINDS THAT THE SELLER
          ESCROW PAYMENT CERTIFICATE (AM ONLY) WAS ACCURATE AND THAT SUCH
          WRITTEN CHALLENGE WAS WITHOUT MERIT, THEN BUYER SHALL PAY SELLER (1)
          REASONABLE ATTORNEY'S FEES AND EXPENSES INCURRED BY SELLER IN
          CONNECTION WITH SUCH DISPUTE AND (2) 10% INTEREST ON THE $500,000 PLUS
          ASSOCIATED ACCRUED INTEREST OF THE ESCROW DEPOSIT CALCULATED FROM THE
          DATE OF SUCH WRITTEN CHALLENGE TO THE DATE THE $500,000 PLUS
          ASSOCIATED ACCRUED INTEREST OF THE ESCROW DEPOSIT IS PAID TO SELLER.
          IF THE ARBITRATOR FINDS THAT THE SELLER ESCROW PAYMENT CERTIFICATE (AM
          ONLY) WAS INACCURATE AND THAT SUCH WRITTEN CHALLENGE WAS WITH MERIT,
          SELLER SHALL PAY BUYER (1) REASONABLE ATTORNEY'S FEES AND EXPENSES
          INCURRED BY LBI HOLDINGS AND BUYER IN CONNECTION WITH SUCH DISPUTE AND
          (2) 10% INTEREST ON THE $500,000 PLUS ASSOCIATED ACCRUED INTEREST OF
          THE ESCROW DEPOSIT CALCULATED FROM THE DATE OF SUCH WRITTEN

                                       13

<PAGE>

          CHALLENGE TO THE DATE THE $500,000 PLUS ASSOCIATED ACCRUED INTEREST OF
          THE ESCROW DEPOSIT IS RETURNED TO BUYER.

          3.3.3 Delivery to LBI Holdings. The Parties agree that the Escrow
          Deposit will be delivered to LBI Holdings in accordance with Section
          3.3.3 of the FM Asset Purchase Agreement. In addition, $500,000 plus
          associated accrued interest of the Escrow Deposit shall be delivered
          to LBI Holdings if (i) the transaction contemplated by this Agreement
          is consummated or (ii) the purchase and sale contemplated by this
          Agreement is not consummated and Seller is not entitled to receive the
          $500,000 plus associated accrued interest of the Escrow Deposit in
          accordance with Section 3.3.2.

          3.4   Buyer's Remedies. If the purchase and sale contemplated by this
Agreement is not consummated because of the breach by Seller of its
representations, warranties or covenants hereunder in any material respect (it
being understood and agreed by the Parties hereto that for purposes of this
Section 3.4, that for purposes of determining such breach of Seller's
representations, warranties and covenants, all knowledge qualifications in the
representations and warranties of Seller contained in this Agreement or in any
certificates delivered pursuant hereto that are in parenthetical (including
without limitation such knowledge qualifications in Sections 4.3.1, 4.3.2,
4.3.3, 4.3.4, 4.3.5, 4.4, 4.5, 4.7, 4.9, 4.10, 4.11, 4.13, 4.14, 4.15, 4.17,
4.18 and 9.1.10) shall be disregarded and no such representation or warranty
shall be qualified in any respect by such knowledge qualifications in
parenthetical), and Buyer is not in breach of its representations, warranties or
covenants hereunder, in any material respect, Seller agrees that, in addition to
any other rights and remedies available at law or in equity, LBI Holdings and
Buyer shall have the following rights and remedies: (i) Buyer shall have the
right to specific performance of Seller's obligation to sell the Purchased
Assets upon the terms and conditions set forth in this Agreement, as applicable,
and incidental damages related to such specific performance; (ii) LBI Holdings
shall have the right to the return of $500,000 of the Escrow Deposit (and
associated interest) or a portion of the Escrow Deposit, as applicable; and
(iii) LBI Holdings and Buyer shall have the right to recover money damages for
breach of this Agreement, including but not limited to, benefit of the bargain
damages and compensation for transaction costs; provided, that if LBI Holdings
and Buyer obtain full remedies under clause (i) pursuant to a non-appealable
judgment with which Seller complies, then Buyer shall not thereafter have
additional claims under clause (iii) and if LBI Holdings and Buyer obtain full
remedies under clause (iii) pursuant to a non-appealable judgment with which
Seller complies, then Buyer shall not thereafter have additional claims under
clause (i); provided, further, that if the purchase and sale contemplated by
this Agreement is not consummated because the representation and warranty in the
second sentence of Section 4.7 would not be true on the KEYH Closing Date, then
LBI Holdings and Buyer shall have the remedies in clauses (i) and (ii) but not
in clause (iii). The Parties agree that remedy at law is inadequate and that
damages are not adequate to compensate LBI Holdings and Buyer.

          3.5   Allocation. The Purchase Price will be allocated as set forth on
Schedule V.

                                       14

<PAGE>

          3.6   Prorations. Other than the prepaid expenses set forth on
Schedule VIII and subject to the rights of Buyer and Seller pursuant to the AM
Local Marketing Agreement, the operation of Station KEYH and, subject to the AM
Local Marketing Agreement, all income, expenses and liabilities attributable
thereto through 11:59 p.m. on the day immediately preceding the KEYH Closing
Date will be for the account of Seller and thereafter for the account of LBI,
and all income and expenses relating to the operation of Station KEYH, including
such items as power and utilities charges, rents and other deferred items
relating to the operation of Station KEYH will be prorated between Seller and
LBI in accordance with generally accepted accounting principles consistently
applied, the proration to be made and paid, insofar as feasible, on the KEYH
Closing Date, with a final settlement sixty days after the KEYH Closing Date. In
the event of any disputes between the parties as to such adjustments, the
amounts not in dispute shall nonetheless be paid at the time provided herein and
such disputes shall be determined by an independent certified public accountant
mutually acceptable to the parties, and the fees and expenses of such accountant
shall be paid one-half by Seller and one-half by Buyer.

                                   ARTICLE IV
                    REPRESENTATIONS AND WARRANTIES BY SELLER

          Seller hereby represents and warrants to LBI Holdings and Buyer as
follows:

          4.1   Organization and Standing. Each of EDC, EDC Sub, and EDC License
Sub is a corporation duly organized, validly existing and in good standing under
the laws of the state of its incorporation. Seller has the requisite corporate
power and authority to enter into and complete the transactions contemplated by
this Agreement.

          4.2   Authorization. All necessary corporate actions and proceedings
to duly approve the execution, delivery and performance of this Agreement, the
Escrow Agreement, the Holdback Escrow Agreement, the Recipient Agreement, the AM
Local Marketing Agreement and other agreements, documents and instruments being
executed by Seller in connection herewith or therewith and the consummation of
the transaction contemplated hereby or thereby have been duly and validly taken
by Seller, and each of this Agreement, the Escrow Agreement, the Holdback Escrow
Agreement, the Recipient Agreement, the AM Local Marketing Agreement and other
agreements, documents and instruments being executed by Seller in connection
herewith or therewith has been duly and validly authorized, executed and
delivered by Seller and constitutes the legal, valid and binding obligation of
Seller, enforceable against Seller in accordance with and subject to their
respective terms.

          4.3   KEYH FCC Licenses, Transmitters and Towers.

          4.3.1 The KEYH FCC Licenses (all of which are listed on Schedule II,
          together with any pending applications for KEYH FCC Licenses)
          constitute all the licenses, permits and other authorizations required
          for and used in connection with the operation of Station KEYH. As of
          the date of this Agreement and as of the KEYH Closing Date, Artlite is
          and shall be holder of all the KEYH FCC Licenses. Other than the
          Initial Grant of the KEYH Assignment Application, no additional order
          or grant is required from the FCC in order to consummate the
          assignment of the KEYH FCC Licenses to LBI Sub. Schedule II correctly
          sets

                                       15

<PAGE>

          forth the respective expiration date of each KEYH FCC License. Each
          KEYH FCC License is validly issued and in full force and effect.
          Seller and (to Seller's knowledge after due inquiry, including with
          Artlite) Artlite have taken all actions and performed all of their
          respective obligations that are necessary to maintain the KEYH FCC
          Licenses without adverse modification or impairment, and complete and
          correct copies of the KEYH FCC Licenses and any pending applications
          therefor have been delivered to Buyer. No event (to Seller's knowledge
          after due inquiry, including with Artlite) has occurred with respect
          to Station KEYH (other than directly as a result of Buyer's actions
          under the AM Local Marketing Agreement) which (i) has resulted in, or
          after notice or lapse of time or both would result in, revocation,
          suspension, adverse modification, non-renewal or termination of or any
          order of forfeiture with respect to, any KEYH FCC License or (ii)
          materially and adversely affects or in the future may materially and
          adversely affect any rights of Seller or Artlite or any of their
          respective assignees or transferees thereunder. None of the KEYH FCC
          Licenses requires that any assignment thereof must be approved by any
          public or other governmental authority other than the FCC.

          4.3.2 Neither Seller nor (to Seller's knowledge after due inquiry,
          including with Artlite) Artlite is a party to, and there are no
          investigations, notices of apparent liability, violations,
          forfeitures, notices of violation, orders to show cause or other
          orders or complaints issued by or before any court or regulatory body,
          including, without limitation, the FCC, or of any other proceedings
          (other than proceedings relating to the radio industry generally) that
          could in any manner threaten or adversely affect the validity or
          continued effectiveness of, or result in the adverse modification of,
          any of the KEYH FCC Licenses. In the event Seller (after due inquiry,
          including with Artlite) learns of any such action, or the filing or
          issuance of any such order, notice or complaint, Seller promptly will
          notify Buyer of the same in writing and will take all reasonable
          measures to contest in good faith or seek removal or rescission of
          such action, order, notice or complaint. Station KEYH is now operating
          at its licensed power and antenna height, in accordance with the KEYH
          FCC Licenses, and is in compliance with the Communications Act
          including, without limitation, rules governing the location of Station
          KEYH's main studio and rules governing the required contents of
          Station KEYH's public inspection files. Seller (after due inquiry with
          Artlite) has no reason to believe that the KEYH FCC Licenses will not
          be renewed in the ordinary course.

          4.3.3 None of the facilities used in connection with the radio
          broadcasting operations of Seller or Artlite relating to Station KEYH
          (including the Transmitter Buildings, the Transmitter Sites and the
          Towers) violates the provisions of any applicable building codes, fire
          regulations, building restrictions or other governmental ordinances,
          orders or regulations (including, without limitation, any applicable
          regulation of the Federal Aviation Administration), except where such
          violation would not impair, impede or affect adversely in any respect
          currently or in the future the continued uninterrupted operation of
          Station KEYH at its licensed power and in accordance with the other
          terms of the KEYH FCC Licenses, and each such facility is zoned so as
          to permit the commercial uses

                                       16

<PAGE>

          intended by the owner or occupier thereof. Schedule II identifies any
          outstanding variances or special use permits materially affecting any
          of Seller's facilities or the uses thereof and Seller is in compliance
          therewith. Neither Seller nor (to Seller's knowledge after due
          inquiry, including with Artlite) Artlite has received any notice of
          any complaint being made against Station KEYH relating to its Tower,
          Transmitter Site, Transmitter Building or Seller's or Artlite's
          operation of such Station (including, without limitation, any
          complaint relating to the signals broadcast or otherwise transmitted
          from any Tower, either by Seller or by any person subleasing a portion
          of such Tower) except, in each case, where such complaint would not
          impair, impede or adversely affect the continued, uninterrupted
          operation of such Station. Each Tower has been appropriately
          registered with the Commission, as described in Schedule II.

          4.3.4 Artlite (to Seller's knowledge after due inquiry, including with
          Artlite) is qualified to sell Station KEYH and to assign the KEYH FCC
          Licenses in accordance with the terms of this Agreement and in
          compliance with the Communications Act. Neither Seller (after due
          inquiry with Artlite) nor (to Seller's knowledge after due inquiry,
          including with Artlite) Artlite knows of any party who has expressed
          any intention to oppose FCC approval of the assignment of the KEYH FCC
          Licenses to LBI Sub, nor does Seller (after due inquiry with Artlite)
          nor (to Seller's knowledge) Artlite know of any reason why FCC consent
          to such assignment might be denied or delayed.

          4.3.5 Each report or certification filed by or on behalf of Seller or
          (to Seller's knowledge after due inquiry, including with Artlite)
          Artlite with the FCC, including, without limitation, any filing
          pursuant to 47 C.F.R.(S) 73.3615 with respect to its ownership of
          Station KEYH and any other filing relating to such Station, was filed,
          and was at the time of filing true, correct and complete in all
          material respects; there have been no changes in the ownership of
          Station KEYH since the filing of the most recent such ownership
          reports or certifications and those ownership reports and
          certifications are true, correct and complete in all respects.

          4.3.6 The operation of Station KEYH by either Artlite or by Seller
          pursuant to the KEYH Local Marketing Agreement does not cause or
          result in exposure of workers or the general public to levels of radio
          frequency radiation in excess of the applicable limits stated in 47
          C.F.R.(S) 1.1310.

          4.4   Artlite Documents. All necessary corporate actions and
proceedings to duly approve the execution, delivery and performance of the
Artlite Documents have been duly and validly taken by each of the parties
thereto and the consummation of the transactions contemplated thereby have been
duly and validly taken by each of the parties party thereto, and each of the
Artlite Documents described in clauses (1) through (8) and in clauses (10) and
(11) of the definition thereof have been, and each of the Artlite Documents
described in clauses (9) , (12) , (13) of the definition thereof will be as of
the KEYH Closing Date, duly and validly authorized, executed and delivered by
each of the parties party thereto. Seller has delivered a full and complete copy
of each of the Artlite Documents (including all exhibits and schedules

                                       17

<PAGE>

thereto, other than Exhibits A through H of the KEYH Purchase Agreement, which
Exhibits A through H were never prepared and therefore do not exist). Each
Artlite Document described in clauses clauses (1) through (8) and in clauses
(10) and (11) of the definition thereof is in full force and effect as of the
date hereof and each of the Artlite Documents will be in full force and effect
as of the KEYH Closing Date. Each Artlite Document described in clauses clauses
(1) through (8) and in clauses (10) and (11) of the definition thereof, is as of
the date hereof, and each of the Artlite Documents will be as of the KEYH
Closing Date, the legal, valid and binding obligation of each of the parties
thereto, enforceable against each in accordance with and subject to its terms
and there are no defaults thereunder. If Seller exercises its rights to purchase
set forth in the KEYH Extension Agreement in compliance with the terms set forth
therein, Seller will gain good and valid title to the Purchased Assets relating
to Station KEYH, free and clear of all Encumbrances upon consummation of the
assignment to Seller. Seller currently operates Station KEYH pursuant to the
terms of the KEYH Local Marketing Agreement, as extended. The KEYH Local
Marketing Agreement has been extended until January 31, 2004 by the parties
thereto and complies in all material respects with the Communications Act. The
Artlite Documents described in clauses (1) through (8) and in clauses (10) and
(11) of the definition thereof are, as of the date hereof, the only agreements
between Seller on the one hand and Artlite and its affiliates on the other hand
and the only agreements relevant to the KEYH Local Marketing Agreement and
Seller's rights to purchase Station KEYH from Artlite. The Artlite Documents
will be, as of the KEYH Closing Date, the only agreements between Seller on the
one hand and Artlite and its Affiliate on the other hand and the only agreements
related to the KEYH Local Marketing Agreement and Seller's rights to purchase
Station KEYH from Artlite. None of the Artlite Documents have been amended or
otherwise modified except pursuant to amendments of which copies have been
delivered to Buyer prior to the date of this Agreement. EDC has exercised the
option to purchase Station KEYH for cash and there are no impediments to its
right to exercise such option and the consideration that Seller is required to
pay Artlite upon exercise of such option is set forth in the KEYH Modification
Agreement. The KEYH Local Marketing Agreement has been extended until January
31, 2004. As of the KEYH Closing Date, the KEYH Local Marketing Agreement will
have terminated or will have been terminated and neither Artlite nor Seller nor
any of their respective affiliates will have any rights with respect to the
Purchased Assets or the Stations (it being understood that lessors under the
applicable leases will continue to be the lessors thereunder). Seller represents
and warrants that (to the knowledge of Seller after due inquiry, including
without limitation due inquiry with Artlite) (a) each of Artlite and All Media
Properties, Inc. (the "Artlite Entities") is, or will be as of the Closing Date,
a corporation validly existing and in good standing under the laws of the State
of Texas with the corporate power to own its properties and assets and to
conduct any activity that a corporation organized under the Texas Corporation
Law may conduct, and (b) each Artlite Entity has the corporate power to enter
into and perform its obligations under the Artlite Documents to which it is a
party. Each Artlite Entity's having forfeited its existence during the period
from 1998 to 2002 does not in any way affect its ability to perform its
obligations under the Artlite Documents on and after the date hereof and does
not in any way affect the transfer and the assignment of assets from Artlite to
Seller and/or Buyer to be consummated on the KEYH Closing Date pursuant to the
Artlite Documents and the option to purchase exercised by EDC thereunder. Each
Artlite Entity's corporate existence and its corporate power and authority have
been fully reinstated. No affiliate of Artlite (other than Artlite Entities) is
a party to any Artlite Documents or any other agreement to which Seller is a

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<PAGE>

party. The execution of the AM Local Marketing Agreement will not constitute a
breach of any of the Artlite Documents by any of the parties thereto and Artlite
has expressly consented in writing to the execution and delivery by Buyer and
Seller of the AM Local Marketing Agreement.

          4.5 Purchased Assets. All items as of the date hereof used in the
operation of Station KEYH are listed and described in Schedule IV to this
Agreement. No other affiliate of EDC (including without limitations, direct or
indirect subsidiaries of EDC) other than Seller owns or has any rights, title or
interest in any Purchased Assets or is in any way involved with the operation of
Station KEYH. On or before the KEYH Closing Date, Artlite will have assigned
good and valid title to the Artlite Assets to Seller, free and clear of all
Encumbrances, and on the KEYH Closing Date, Seller will have good and valid
title to the Purchased Assets, free and clear of all Encumbrances, other than
the Encumbrances described in Schedule III, which Encumbrances will be released
on the KEYH Closing Date concurrently with the closing. Upon consummation of the
transactions set forth in this Agreement, Buyer will have good and valid title
to the Purchased Assets, free and clear of all Encumbrances (other than liens
granted to Buyer's lenders). Schedule III sets forth each release and/or UCC
termination statement required in order to release such Encumbrances on the KEYH
Closing Date. Schedule III also sets forth all currently effective UCC financing
statements that have been filed against any Purchased Asset. Seller and (to
Seller's knowledge after due inquiry, including with Artlite) Artlite have
maintained and have operated each Transmitter Site, each Tower, each Transmitter
Building and Station KEYH under and in accordance with the terms of all
applicable regulations in all material respects. Seller (after due inquiry with
Artlite) is not, and (to Seller's knowledge) Artlite is not, aware of any
complaints regarding the Transmitter Sites, the Towers, the Transmitter
Buildings, the antennas, the radio transmitters or the studio facilities. There
is no pending or, to the knowledge of Seller (after due inquiry with Artlite) or
(to the knowledge of Seller) Artlite, threatened action, event, transaction or
proceeding that could interfere with the quiet enjoyment or operation of the
Purchased Assets by Seller or Artlite or, on and after the KEYH Closing Date, by
Buyer. Buyer will have on and after the KEYH Closing Date reasonable access to
each of the Transmitter Sites, and a continuous means of ingress and egress
thereto from public roads. The items of Tangible Personal Property are in all
material respects in good operating condition for equipment of their age and
usage (ordinary wear and tear excepted). The technical equipment, constituting a
part of the Tangible Personal Property, has been maintained in accordance with
Station KEYH's past practice and is operating and complies in all material
respects with all applicable rules and regulations of the FCC and the terms of
the KEYH FCC Licenses and Permits. The Purchased Assets include all the personal
property and assets, including real estate rights, necessary to conduct the
operation of Station KEYH as now conducted. The sale of the Purchased Assets
relating to Station KEYH is a sale of the entire operating assets of a business
or of a separate division, branch, or identifiable segment of a business within
the meaning of Texas Tax Code Section 151.304 and Texas Administrative Code
Section 3.316.

          4.6 Insurance. Seller and Artlite now have in force insurance on the
Purchased Assets as set forth in Schedule VI and will continue the present
insurance at the present limits in full force and effect up through the KEYH
Closing Date.

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<PAGE>

          4.7  Litigation. On or prior to the date of this Agreement, no
litigation, action, suit, judgment, proceeding or, to the knowledge of Seller
(after due inquiry with Artlite) or (to Seller's knowledge) Artlite,
investigation relating to Station KEYH is pending or outstanding before any
forum, court, or governmental body, department or agency of any kind to which
Seller or Artlite or Station KEYH is a party and, to the knowledge of Seller
(after due inquiry with Artlite) or (to Seller's knowledge) Artlite, no such
litigation or proceeding is threatened. On or prior to the KEYH Closing Date, no
litigation, action, suit, judgment, proceeding or, to the knowledge of Seller
(after due inquiry with Artlite) or (to Seller's knowledge) Artlite,
investigation relating to Station KEYH (except for such litigation, action,
suit, judgment, proceeding or investigation arising directly as a result of
Buyer's actions under the AM Local Marketing Agreement) that could reasonably be
expected or would reasonably be expected to adversely affect the operation of
Station KEYH in accordance with Seller's past operations or could reasonably be
expected or would reasonably be expected to prevent a consummation of the
transaction contemplated hereby shall be pending or outstanding before any
forum, court or governmental body, department or agency of any kind to which
Seller or Artlite or Station KEYH is a party, and, to the knowledge of Seller
(after due inquiry with Artlite) or (to Seller's knowledge) Artlite, no such
litigation or proceeding shall be threatened.

          4.8  Contracts. Seller has delivered to Buyer prior to the KEYH
Closing Date true and complete copies of all Contracts (in the case of oral
agreements, a written summary of the key terms of such oral Contracts),
including without limitation the Assumed Contracts. The Assumed Contracts will
be enforceable by Buyer after the consummation of the transaction contemplated
hereby in accordance with their respective terms; provided, however, that Seller
makes no warranty as to performance by any other party to any Assumed Contracts
or as to LBI's ability to collect any payments due or to become due thereunder.
Seller has not taken any action that would impair the enforceability of the
Assumed Contracts, or omitted to take any action, the omission of which would
have such effect. There are no material defaults under any of the Assumed
Contracts and the consummation of the transaction contemplated hereby will not
cause any defaults under any of the Assumed Contracts.

          4.9  Insolvency. No insolvency proceedings of any character including,
without limitation, bankruptcy, receivership, reorganization, composition or
arrangement with creditors, voluntary or involuntary, affecting Seller or (to
Seller's knowledge after due inquiry, including with Artlite) Artlite or any of
its assets or properties is pending or, to the knowledge of Seller (after due
inquiry, including with Artlite) or (to Seller's knowledge) Artlite, threatened.

          4.10 Reports. All material returns, reports and statements currently
required to be filed by Seller or Artlite with the Commission or with any other
governmental agency have been filed and each such return, report and statement
is true, correct and complete in all material respects. Each of Seller and (to
Seller's knowledge, after due inquiry, including with Artlite) Artlite has
complied in all material respects with the reporting requirements of the
Commission and other governmental authorities having jurisdiction over Station
KEYH and its operations.

          4.11 No Defaults. Neither the execution, delivery and performance by
Seller of this Agreement, the Escrow Agreement, the Holdback Escrow Agreement,
the Recipient Agreement, the AM Local Marketing Agreement, and other agreements,
documents and instruments being executed by Seller in connection herewith or
therewith nor the consummation

                                       20

<PAGE>

by Seller of the transaction contemplated hereby is an event that, of itself or
with the giving of notice or the passage of time or both, will (i) conflict with
the provisions of the Articles of Incorporation or Bylaws of Seller, (ii)
constitute a violation of, conflict with or result in any breach of or any
default under, result in any termination or modification of, or cause any
acceleration of any obligation under, any material contract, mortgage,
indenture, agreement, lease, license or other instrument to which Seller is a
party or by which it is bound, or by which it may be affected, or result in the
creation of any Encumbrance on any of the Purchased Assets, (iii) violate any
judgment, decree, order, statute, rule or regulation applicable to Seller or
(iv) violate or constitute a breach of any Assumed Contract or any of the
Artlite Documents. The execution, delivery and performance by Seller of this
Agreement, the Escrow Agreement, the Holdback Escrow Agreement, the Recipient
Agreement, the AM Local Marketing Agreement, and other agreements, documents and
instruments being executed by Seller in connection herewith or therewith and the
consummation by Seller and (to Seller's knowledge after due inquiry, including
with Artlite) Artlite of the transactions contemplated hereby do not require the
consent of any third party other than as listed on Schedule III.

          4.12 Disclosures. No covenant, representation or warranty by Seller
and no written statement, certificate, appendix or Schedule furnished by Seller
pursuant hereto or in connection with the transaction contemplated hereby
contains any untrue statement of a material fact or omits to state any material
fact necessary to make the statements contained herein or therein not materially
misleading.

          4.13 Environmental Compliance. (i) Seller has not, in connection with
its business or assets, generated, used, transported, treated, stored, released
or disposed of, or has suffered and has permitted no one else to generate, use,
transport, treat, store, release or dispose of any Hazardous Substance (as
defined below) in violation of any applicable environmental law; (ii) to the
knowledge of Seller or (to Seller's knowledge) Artlite, there has not been any
generation, use, transportation, treatment, storage, release or disposal of any
Hazardous Substance in connection with the conduct of Seller's business or in
any properties within 100 yards of its business which has created or might
reasonably be expected to create any material liability under any applicable
environmental law or which would require reporting to or notification of any
governmental entity; (iii) to the knowledge of Seller or (to Seller's knowledge)
Artlite, no asbestos or polychlorinated biphenyl or underground storage tank is
contained in or located at any facility used in connection with its business;
and (iv) to the knowledge of Seller or (to Seller's knowledge) Artlite, any
Hazardous Substance handled or dealt with in any way in connection with Seller's
business has been and is being handled or dealt with in all material respects in
compliance with all applicable environmental laws. As used herein, "Hazardous
Substance" means substances that are defined or listed in, or otherwise
classified pursuant to, any applicable laws as "hazardous substances,"
"hazardous materials," "hazardous wastes" or "toxic substances," or any other
formulation of any applicable environmental law intended to define, list or
classify substances by reason of deleterious properties such as ignitibility,
corrosivity, reactivity, radioactivity, carcinogenicity, reproductive toxicity
or "EP toxicity," and petroleum and drilling fluids, produced waters and other
wastes associated with the exploration, development, or production of crude oil,
natural gas or geothermal energy.

                                       21

<PAGE>

          4.14   Intellectual Property.

          4.14.1 Schedule VII contains a true and complete list of all patents
          and trademarks, service marks, station names, alternative station
          names, slogans, trade names, logos, jingles, assumed names, fictional
          business names, copyrights, licenses, permits, authorizations and
          other similar intellectual property rights and interests applied for,
          issued to or presently owned or used by Seller or (to Seller's
          knowledge after due inquiry, including with Artlite) Artlite (other
          than the name "El Dorado" and programming and its contents used but
          not owned by Seller) which are material to the operation of Station
          KEYH, including the call letters "KEYH" and any other call signs
          (together with the goodwill associated therewith, the "Intellectual
          Property"). Except as set forth on Schedule VII, on the KEYH Closing
          Date, Seller will have good and marketable title to all of the
          Intellectual Property, free and clear of all Encumbrances. Neither
          Seller nor (to Seller's knowledge after due inquiry, including with
          Artlite) Artlite have made any registrations or filings in the United
          States Copyright Office or the United States Patent and Trademark
          Office nor have Seller or (to Seller's knowledge after due inquiry,
          including with Artlite) Artlite been issued by the United States
          Copyright Office or the United States Patent and Trademark Office any
          intellectual property rights in connection with or related to Station
          KEYH.

          4.14.2 Except as set forth on Schedule VII, on the KEYH Closing Date,
          neither Seller nor (to Seller's knowledge) Artlite will have received
          any notice and Seller (after due inquiry with Artlite) will have no
          knowledge of Artlite having received notice from any other person or
          entity pertaining to or challenging the right of Seller or Artlite to
          use any of the Intellectual Property or any rights thereunder.

          4.14.3 Except as set forth on Schedule VII, neither Seller nor (to
          Seller's knowledge after due inquiry, including with Artlite) Artlite
          has violated or infringed any patent, trademark, trade name, jingle,
          assumed name, fictional business name, copyright, license, permit or
          other similar intangible property right or interest held by others or
          any license or permit held by Seller or Artlite in connection with or
          related to Station KEYH.

          4.14.4 Except as set forth on Schedule VII, (i) neither Seller nor (to
          Seller's knowledge after due inquiry, including with Artlite) Artlite
          has granted any license or other rights and neither Seller nor (to
          Seller's knowledge after due inquiry, including with Artlite) Artlite
          has any obligations to grant licenses or other rights to any of the
          Intellectual Property, and (ii) neither Seller nor Artlite has made
          any claim of any violation or infringement by others of its rights to
          or in connection with any of the Intellectual Property, and there is
          no basis for the making of any such claim.

          4.15   Brokers. No agent, broker, investment or commercial banker,
person or firm acting on behalf of Seller or (to Seller's knowledge after due
inquiry with Artlite) Artlite or under the authority of Seller or (to Seller's
knowledge after due inquiry with Artlite) Artlite is or will be entitled to any
broker, finder or financial advisor fee or any other commission or similar

                                       22

<PAGE>

fee directly or indirectly in connection with the transaction contemplated by
this Agreement, other than Houlihan Lokey Howard & Zukin, whose fee shall be
paid by Seller.

          4.16 Prepaid Expenses. All prepaid expenses made by Seller for
services to be provided to Station KEYH after the KEYH Closing Date under the
Assumed Contracts are set forth on Schedule VIII, except for such expenses as
are subject to proration under Section 3.6.

          4.17 Sale Proceeds Recipients; Recipient Agreement. Seller and Sale
Proceeds Recipients listed on Schedule IX constitute all entities and persons
that will receive the proceeds from the sale of the Stations pursuant to this
Agreement and/or the AM Asset Purchase Agreement other than those persons or
entities that will receive only Transaction and Wind Down Expenses. Upon
execution and delivery thereof, (to Seller's knowledge after due inquiry,
including with the Sale Proceeds Recipients) the Recipient Agreement will have
been duly and validly authorized, executed and delivered by Seller and each Sale
Proceeds Recipient signatory thereto and will constitute the legal, valid and
binding obligation of Seller and each Sale Proceeds Recipient signatory thereto,
enforceable against Seller and such Sale Proceeds Recipient in accordance with
and subject to its terms.

                                    ARTICLE V
            REPRESENTATIONS AND WARRANTIES BY BUYER AND LBI HOLDINGS

          LBI Holdings and Buyer represent and warrant to Seller as follows:

          5.1  Status. Each of LBI Holdings, LBI and LBI Sub is a California
corporation, duly organized, validly existing and in good standing under the
laws of the State of California. LBI Holdings and Buyer each have the requisite
corporate power to enter into and complete the transaction contemplated by this
Agreement.

          5.2  No Defaults. Other than the consents set forth in Schedule III
with respect to Buyer, item (2) of which will have been obtained by the KEYH
Closing Date, neither the execution, delivery and performance by LBI Holdings or
Buyer of this Agreement, the Escrow Agreement, the Holdback Escrow Agreement,
the Recipient Agreement, the AM Local Marketing Agreement, and other agreements,
documents and instruments being executed by LBI Holdings or Buyer in connection
herewith or therewith nor the consummation by Buyer of the transaction
contemplated hereby is an event that, of itself or with the giving of notice or
the passage of time or both, will (i) conflict with the provisions of the
Articles of Incorporation or Bylaws of LBI Holdings or Buyer, (ii) constitute a
violation of, conflict with or result in any breach of or any default under,
result in any termination or modification of, or cause any acceleration of any
obligation under, any material contract, mortgage, indenture, agreement, lease
or other instrument to which LBI Holdings or Buyer is a party or by which it is
bound, or by which it may be affected, or result in the creation of any
Encumbrance on any of its assets, except for agreements, indentures and
instruments related to the financing of the transaction contemplated by this
Agreement, (iii) violate any judgment, decree, order, statute, rule or
regulation applicable to LBI Holdings or Buyer, or (iv) result in the creation
or imposition of any Encumbrance on Station KEYH or the Purchased Assets, except
for liens, charges or encumbrances relating to the financing of the transaction
contemplated by this Agreement.

                                       23

<PAGE>

          5.3 Authorization. All necessary corporate actions and proceedings to
duly approve the execution, delivery and performance of this Agreement, the
Escrow Agreement, the Holdback Escrow Agreement, the Recipient Agreement, the AM
Local Marketing Agreement and other agreements, documents and instruments being
executed by LBI Holdings or Buyer in connection herewith or therewith and the
consummation of the transaction contemplated hereby or thereby have been duly
and validly taken by LBI Holdings and Buyer, and each of this Agreement, the
Escrow Agreement, the Holdback Escrow Agreement, the Recipient Agreement, the AM
Local Marketing Agreement and other agreements, documents and instruments being
executed by LBI Holdings or Buyer in connection herewith or therewith has been
duly and validly authorized, executed and delivered by LBI Holdings and Buyer
and constitutes the legal, valid and binding obligation of LBI Holdings and
Buyer, enforceable against LBI Holdings and Buyer in accordance with and subject
to their respective terms.

          5.4 Brokers. No agent, broker, investment or commercial banker, person
or firm acting on behalf of LBI Holdings or Buyer or under the authority of LBI
Holdings or Buyer is or will be entitled to any broker, finder or financial
advisor fee or any other commission or similar fee directly or indirectly in
connection with the transaction contemplated by this Agreement, other than Kalil
& Co., Inc., whose fee shall be paid by Buyer.

          5.5 Qualification as a Broadcast Licensee. Excluding all facts arising
from changes between the date hereof and the KEYH Closing Date to the radio
broadcasting industry generally and any modification during such period of the
FCC rules, regulations or policies affecting all members of the class of holders
of FCC licenses to which Buyer would belong as the holder of KEYH FCC Licenses
or to which Buyer belongs as the holder of its existing FCC licenses, as of the
date of this Agreement and as of the KEYH Closing Date, no fact exists that
would as of the date hereof and as of the KEYH Closing Date, under the
Communications Act, disqualify Buyer as owner, operator and licensee of Station
KEYH. Excluding all requests arising from changes between the date hereof and
the KEYH Closing Date to the radio broadcasting industry generally and any
modification during such period of the FCC rules, regulations or policies
affecting all members of the class of holders of FCC licenses to which Buyer
would belong as the holder of the KEYH FCC Licenses or to which Buyer belongs as
the holder of its existing FCC licenses, no request for any waiver under the
Communications Act is necessary in order for LBI Holdings or Buyer to obtain a
grant of the KEYH Assignment Application or to consummate the transactions
contemplated hereby.

          5.6 Litigation. There are no suits, legal proceedings or
investigations of any nature pending or, to the knowledge of LBI Holdings or
Buyer, threatened against or affecting it that would affect the ability of LBI
Holdings or Buyer to carry out the transaction contemplated by this Agreement.

          5.7 Approvals and Consents. To knowledge of LBI Holdings or Buyer, the
only approvals or consents of persons or entities not a party to this Agreement
that are legally or contractually required to be obtained by LBI Holdings or
Buyer in connection with the consummation of the transaction contemplated by
this Agreement are identified on Schedule III.

                                       24

<PAGE>

                                   ARTICLE VI
                               COVENANTS OF SELLER

          6.1   Affirmative Covenants of Seller. Between the date hereof and the
KEYH Closing Date, except as disclosed in this Agreement:

          6.1.1 Maintenance. Seller will continue to operate, and will cause
          Artlite to continue to operate, Station KEYH in substantial conformity
          with past practices, and in conformity with the KEYH FCC Licenses and
          the Communications Act.

          6.1.2 Preserve Relations. Seller will use its commercially reasonable
          efforts (such standard being determined as if Seller intended to
          continue operation of the Stations for at least ten years from the
          date of determination) to preserve the businesses of Station KEYH and,
          where commercially reasonable (such standard being determined as if
          Seller intended to continue operation of Station KEYH for at least ten
          years from the date of determination), the good relations with the
          third parties (including but not limited to lessors, advertisers,
          clients and service providers) under all Assumed Contracts, with
          owners of property adjacent to or in the area of the Transmitter
          Sites, the Transmitter Buildings, the Towers, and with advertisers,
          service providers, municipalities and Artlite and its affiliates.

          6.1.3 Reasonable Access. In addition to the rights of Buyer under the
          AM Local Marketing Agreement, following reasonable advance
          notification, Seller will provide Buyer and representatives of Buyer
          with reasonable access to the employees and the properties, titles,
          contracts, books, files, logs, records and affairs of Station KEYH,
          and Seller will furnish or will cause to be furnished such additional
          information concerning Station KEYH as Buyer may from time to time
          reasonably request. Seller agrees that a request by Buyer at least
          three business days prior to a visit by personnel of Buyer to Station
          KEYH during such Station's normal business hours shall constitute
          reasonable advance notification and shall make best efforts to make
          available the documents and the personnel Buyer indicates that its
          personnel would like to see during such visit. Buyer will maintain the
          confidentiality of all such information in accordance with the terms
          of confidentiality previously agreed to between EDC and Liberman
          Broadcasting, Inc. pursuant to Section 9 of the Letter of Intent as
          replaced by Exhibit J hereto. Buyer shall have the right to make
          offers of employment beginning as of the date hereof to such employees
          of Seller as Buyer may identify in its sole and absolute discretion
          without liability to Seller. Without limiting the generality of the
          foregoing, Seller will promptly (and in any event within two business
          days) deliver to Buyer any information requested by Buyer (if
          applicable, for specified time periods requested by Buyer) that is
          within the scope of information described in Schedule X annexed hereto
          and that is then available (or should reasonably be available) to
          Seller. A copy of the information so requested by Buyer shall be
          delivered to Buyer and a copy of such information shall also remain at
          the office of Seller (at the address set forth in Section 11.1) at all
          times. Seller shall update in its records the information described in
          Schedule X on a timely basis in accordance with its past practices.
          Buyer may request such information as often

                                       25

<PAGE>

          as it chooses. Seller shall comply with the provisions of the last
          paragraph of Schedule X.

          6.1.4 Obtain Consents. Seller will use its best efforts and will use
          its best efforts to cause Artlite, to procure the Required Consents.

          6.1.5 Books and Records. Seller will maintain the books and records of
          Station KEYH consistent with past practices.

          6.1.6 Insurance. Seller will maintain, and will be responsible and
          bear the risk for Artlite maintaining, in force the existing insurance
          policies identified on Schedule VI or reasonably equivalent policies.
          Seller will use, and will be responsible and bear the risk for Artlite
          using, the proceeds of any claims for loss payable under such
          insurance policies to repair, replace, or restore any of the Purchased
          Assets destroyed by fire and other casualties to their former
          condition as soon as possible after the loss.

          6.1.7 Notification. Seller will promptly upon Seller's learning of the
          same notify Buyer of any order to show cause, notice of violation,
          notice of apparent liability or of forfeiture or the filing or written
          threat of filing of any complaint against Station KEYH or against
          Seller or Artlite in connection with Station KEYH, occurring between
          the date hereof and the KEYH Closing Date, and respond to any action,
          order, notice or written complaints, and implement procedures to
          ensure that the complaints or violations will not recur. Without
          limiting the generality of the foregoing, Seller will also promptly
          upon Seller's learning of the same notify Buyer of any complaint being
          made against Station KEYH relating to its Tower, Transmitter Site,
          Transmitter Building or Seller's or Artlite's operation of such
          Station (including, without limitation, any complaint related to the
          signals broadcast or otherwise transmitted from such Tower, either by
          Seller or Artlite or by any person subleasing a portion of such Tower
          but not including complaints relating to the programming or content of
          Station KEYH, such complaints which are subject to the first sentence
          of this section). Without limiting the generality of the foregoing,
          Seller will promptly (and in any event within three business days)
          upon Seller's obtaining knowledge of the same notify Buyer of (i) any
          termination of sales orders or threats of termination in either case
          by any advertiser whose orders total more than $2,000 per month or by
          Seller or (ii) the ceasing of employment of any employee of Station
          KEYH who is either an account executive or earns more than $30,000 per
          year.

          6.1.8 Contracts. Seller will provide a copy of any Contract that
          involves more than $2,000 per month or with any service provider or
          advertiser it enters into prior to KEYH Closing Date (or a written
          description of such Contract, if oral) within five business days of
          entering into such Contract and in any event prior to the KEYH Closing
          Date. Seller will not enter into any Contract after the execution of
          the AM Local Marketing Agreement without prior written consent of
          Buyer, which consent shall not be unreasonably withheld.

                                       26

<PAGE>

          6.1.9  Transition Assistance. Seller will use best efforts (without
          incurring unreasonable costs) to (and will use reasonable efforts to
          cause Artlite to) assist Buyer in transitioning third party provided
          services such as utilities, phone service, etc. and in transitioning
          advertisers.

          6.1.10 Assistance in Transfer of Records and Data. Seller will fully
          cooperate with Buyer and make such advance preparations (including
          making copies in advance, collecting paperwork, coordinating
          information about computer systems and configurations) as are
          necessary so that Seller can deliver, and Seller shall deliver, the
          data and records required to be delivered under Section 2.1.4 to Buyer
          (including the transfer of data from Seller's computer systems to
          Buyer's computer systems) on or prior to the fifteenth business day
          prior to the Effective Date with title to such data and records
          transferring to Buyer only on the KEYH Closing Date; provided,
          however, that if after Seller's commercially reasonable efforts an
          electronic transfer is not possible, the same data may be transferred
          by Seller by manual input on or prior to the tenth business day prior
          to the Effective Date, with costs of such manual input to be shared
          between Buyer and Seller. Such data and records shall be updated on a
          daily basis until the Effective Date.

          6.2    Negative Covenants of Seller. From the date hereof through
consummation of the transaction contemplated hereby on the KEYH Closing Date,
except as contemplated by this Agreement, Seller will not, and will cause
Artlite not to, without the prior written consent of Buyer:

          6.2.1  Encumbrances. Create or assume any Encumbrance on any of the
          Purchased Assets, whether now owned or hereafter acquired, unless
          discharged or terminated and fully released prior to the KEYH Closing
          Date;

          6.2.2  Transfers. Sell, assign, lease or otherwise transfer or dispose
          of any of the Purchased Assets, whether now owned or hereafter
          acquired, except for retirements in the normal and usual course of
          business;

          6.2.3  Call Letters. Change Station KEYH's call letters or modify
          Station KEYH's facilities in any material respect;

          6.2.4  Change in Format or Business; Change Station KEYH's format
          (including but not limited to genre of music, demographic or language)
          or otherwise materially change Station KEYH's business model or
          advertising sales strategy; provided, however, that nothing in this
          Section 6.2.4 is intended to constitute an impermissible abrogation of
          a licensee's responsibilities under the Communications Act to maintain
          control of the operation of Station KEYH; provided, further, that
          actions taken by Buyer pursuant to and in compliance with the AM Local
          Marketing Agreement shall not constitute violations of this Section
          6.2.4.

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<PAGE>

          6.2.5 Modification of Contracts. Amend or terminate any of the Assumed
          Contracts (or waive any substantial right thereunder) or any
          advertising contracts that involves more than $2,000 per month;

          6.2.6 Rights. Cancel or compromise any claim or waive or release any
          right of Seller or Artlite relating to the Purchased Assets, except in
          the ordinary course of business consistent with past practice;

          6.2.7 KEYH FCC Licenses and Permits. Cause or permit, by any act or
          failure on its part, the KEYH FCC Licenses or Permits to expire or to
          be surrendered or modified (unless Buyer has provided prior written
          consent with respect to such modification, which consent shall not be
          withheld unreasonably in the case of modifications required pursuant
          to a casualty event), or take any action which would cause the FCC or
          any other governmental authority to institute proceedings for the
          suspension, revocation or adverse modification of any of the KEYH FCC
          Licenses or Permits, or fail to prosecute with due diligence any
          pending applications to any governmental authority in connection with
          the operation of Station KEYH, or take any other action within
          Seller's or Artlite's control which would result in Station KEYH being
          in non-compliance with the requirements of the Communications Act or
          any other applicable law material to the operation of Station KEYH; or

          6.2.8 No Inconsistent Action. Take any other action inconsistent with
          its obligations under this Agreement or which could hinder or delay
          the consummation of the transaction contemplated by this Agreement.

                                  ARTICLE VII
                              ADDITIONAL AGREEMENTS

          7.1   Purchase of Station KEYH; Inquiry and Maintenance of Station
KEYH

          7.1.1 Exercise Purchase Right of Station KEYH. EDC has exercised its
          right to purchase Station KEYH set forth in Section II A of the KEYH
          Extension Agreement in compliance with the terms set forth therein and
          Seller has delivered to LBI Holdings written evidence of such exercise
          as set forth in Exhibit E.

          7.1.2 Artlite Documents. Seller will exercise and enforce all its
          rights and will protect its interests under and will not waive any of
          its rights under the Artlite Documents. If Buyer reasonably requests
          additional documents or agreements from Artlite or its affiliates
          other than the Artlite Documents or any other documents relating to
          Artlite required hereunder, Seller shall use its best efforts (without
          incurring unreasonable costs) to obtain them. Seller shall use its
          best efforts to cause Artlite to update registrations of the Towers
          with the FCC to reflect LBI Sub as the owner of the Towers following
          the KEYH Closing Date.

          7.1.3 Due Inquiry. Seller will regularly and no less frequently than
          every two weeks from the date of this Agreement to the KEYH Closing
          Date and

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<PAGE>

          immediately prior to the KEYH Closing Date inquire (by fax or other
          written document) as to whether Artlite has any knowledge of any facts
          that would require disclosure if Seller had knowledge of such fact
          under this Agreement, including Sections 4.3.1, 4.3.2, 4.3.3, 4.3.4,
          4.3.5, 4.4, 4.5, 4.7, 4.9, 4.10, 4.11, 4.13, 4.14, 4.15, 4.17, 4.18
          and 6.1.7 and 9.1.10. Seller will request Artlite to immediately
          inform Seller of any such facts and Seller will immediately inform
          Buyer of any such facts.

          7.2   Application for Commission Consent; Other Consents; Pre-Closing.

          7.2.1 FCC Consent; Compliance with Schedule II. Buyer and Seller agree
          to proceed as expeditiously as practical, and in no event later than
          fifteen business days after the execution hereof by Buyer and Seller,
          to file or cause to be filed, and amend or cause to be amended, as the
          case may be, the KEYH Assignment Application requesting FCC consent to
          the transaction contemplated by this Agreement. The Parties agree that
          the KEYH Assignment Application will be prosecuted in good faith and
          with due diligence, including filing and cooperating with all requests
          of the Commission. The Parties acknowledge that this Agreement will
          have to be filed with the FCC. The Parties further acknowledge that
          the KEYH Assignment Application may have to be amended from time to
          time prior to the date it is granted to reflect any changes resulting
          from Buyer's financing and related arrangements. To the extent that
          actions must be taken by Artlite in order to accomplish the foregoing,
          Seller shall be responsible for causing Artlite to take such actions,
          at no expense to Buyer. In the event that the Commission informs
          Seller or Buyer that it would be necessary to obtain the Commission's
          consent to the assignment of the KEYH FCC Licenses to Seller prior to
          the filing of an assignment application to assign such KEYH FCC
          Licenses to LBI Sub, the parties shall amend or, if necessary, refile
          the KEYH Assignment Application so as to provide for the assignment of
          the KEYH FCC Licenses directly from Artlite to LBI Sub and, in
          conjunction therewith, Seller shall cause Artlite to execute an
          agreement with LBI Sub, in form and substance acceptable to Buyer in
          its sole discretion and without in any way diminishing Seller's
          obligations to Buyer hereunder, which agreement shall provide for the
          assignment of the KEYH FCC Licenses in respect of Station KEYH to LBI
          Sub on the KEYH Closing Date subject to the satisfaction of the
          conditions to Buyer's obligations hereunder. Seller shall comply with
          the requirements set forth in Sections A and B of Schedule II.

          7.2.2 Other Governmental Consents. Promptly, but not later than ten
          business days following the filing of the KEYH Assignment Application,
          the Parties will proceed to prepare and file with all other
          appropriate governmental authorities (if any), such other requests for
          approval or waiver as may be required from such governmental
          authorities to permit the transfer of the KEYH FCC Licenses, Permits
          and the Purchased Assets, or as otherwise required in connection with
          the transaction contemplated hereby and will jointly, diligently and
          expeditiously prosecute, and will cooperate fully with each other in
          the prosecution of, such requests for approval or waiver and all
          proceedings necessary to secure such

                                       29

<PAGE>

          approvals and waivers; Seller further agrees that promptly but no
          later than ten business days following the filing of the KEYH
          Assignment Application, Seller will proceed to prepare and file with
          all other appropriate governmental authorities (if any), such other
          requests for approval or waiver as may be required from such
          governmental authorities to permit the transfer of the KEYH FCC
          Licenses, Permits and the Purchased Assets from Artlite to Seller and
          Seller will diligently and expeditiously prosecute such requests for
          approval or waiver and all proceedings necessary to secure such
          approvals and waivers. To the extent that actions must be taken by
          Artlite in order to accomplish the foregoing, Seller shall be
          responsible for causing Artlite to take such actions, at no expense to
          Buyer. The Parties hereby acknowledge that no filings will be required
          under the HSRA because both the Purchase Price and the fair market
          value of the Purchased Assets and Assumed Contracts, together with the
          Purchased Assets and Assumed Contracts under the FM Asset Purchase
          Agreement, are less than $50,000,000.

          7.2.3 Control of the Station KEYH. This Agreement shall not be
          consummated until after the KEYH Closing Date. Prior to the KEYH
          Closing Date, Artlite shall continue to control the operation of
          Station KEYH with Buyer's interest in Station KEYH being limited to
          its rights under this Agreement, the KEYH Assignment Application and
          the AM Local Marketing Agreement.

          7.2.4 Preclosing. Buyer and Seller agree to hold a pre-closing
          (delivering to their respective counsel all closing documents to which
          they are a party) on a mutually agreeable date no later than at least
          3 business days prior to the scheduled KEYH Closing Date.

          7.2.5 Rescission. As Buyer has the option to close the transactions
          contemplated by this Agreement prior to the KEYH Final Grant Day, if
          prior to such time the Initial Grant is reversed or otherwise set
          aside pursuant to a final order of the FCC or the final, unappealable
          order of a court of competent jurisdiction, then the parties shall
          comply with such order in a manner that otherwise complies with
          applicable law and returns the parties to the status quo ante in all
          material respects, including the return of the Purchase Price to Buyer
          and the return of Station KEYH to Seller (it being understood that in
          such event Seller may, within the lesser of thirty (30) days or such
          shorter time as is available to allow the Parties to comply with the
          final order, designate one or more third parties, each of whom is
          qualified, in Seller's reasonable belief, to hold the KEYH FCC
          Licenses in accordance with the FCC rules, as the assignees of Station
          KEYH). In the event a third party challenges the KEYH Assignment
          Application, whether prior to or following Initial Grant, the Parties
          shall cooperate to rebut such challenge and, in the event that the
          Initial Grant is set aside as a result of such challenge, the parties
          shall exhaust all administrative and judicial appeals to protect the
          Initial Grant and have it become a final, unappealable grant at all
          times prior to the date on which a Party terminates this Agreement
          pursuant to Section 7.3 or 7.4.

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<PAGE>

          7.3   Mutual Right to Terminate. Subject to the provisions of Section
7.6.2, if the purchase and sale transaction contemplated by the AM Asset
Purchase Agreement has not occurred on or before the first anniversary of the
date of this Agreement (or if the effective period of FCC's consent is extended
as described in Section 7.6.2 for a certain number of days due to any damage or
event that prevents broadcast transmissions of Station KEYH, then the date which
occurs that many days (but not exceeding in any event 120 days) after the first
anniversary of the date of this Agreement), either Buyer or Seller, if such
Party is not materially in default hereunder in a manner which has delayed the
occurrence of the purchase and sale transaction contemplated by the AM Asset
Purchase Agreement, may terminate this Agreement upon five days' written notice
to the other Party; provided, however, that subsequent to the consummation of
the transactions contemplated by the FM Asset Purchase Agreement pursuant to an
FM Only Closing, the date upon which this Agreement may be terminated pursuant
to this Section 7.3 shall be extended an additional twelve months.

          7.4   Buyer's Right to Terminate. Buyer, at its option, may terminate
this Agreement, so long as Buyer is not then in material default under or
material breach of this Agreement, upon the happening of any of the following
events:

          7.4.1 (i) The KEYH FCC Licenses or other Permits are modified as a
          result of any action initiated by Seller without the consent of Buyer,
          whose consent shall not be unreasonably withheld if such modification
          is required pursuant to a casualty event, or (ii) the KEYH FCC
          Licenses or other Permits are unilaterally modified by the FCC and
          such modification results in an adverse change in Buyer's ability to
          operate Station KEYH in a manner consistent with Seller's past
          operations thereof, or (iii) the terms of the KEYH FCC Licenses or
          other Permits are substantially modified resulting in an adverse
          change in Buyer's ability to operate Station KEYH in a manner
          consistent with Seller's past operations thereof; provided, however,
          that Sections 7.4.1(ii) and 7.4.1(iii) shall not apply if such
          modification is a result of a modification of FCC rules, regulations
          or policies affecting all members of the class of holders of FCC
          licenses to which Seller or Artlite belongs as the holder of the KEYH
          FCC Licenses;

          7.4.2 The KEYH Assignment Application is designated for a hearing
          before an administrative law judge;

          7.4.3 The FCC institutes revocation of license proceedings against
          Station KEYH; or

          7.4.4 Seller is in material breach of this Agreement ten business days
          after notice of breach and has not commenced and continued to
          prosecute diligently a cure therefor or such breach is or becomes
          incurable;

          7.4.5 The FM Asset Purchase Agreement has been terminated; or

          7.4.6 The transactions contemplated by the FM Asset Purchase Agreement
          have been consummated and the KEYH Local Marketing Agreement or the AM
          Local Marketing Agreement are no longer in full force and effect
          (unless such failure to

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<PAGE>

          be in full force and effect with respect to the AM Local Marketing
          Agreement is due to a breach by LBI Holdings or Buyer under the AM
          Local Marketing Agreement).

          7.4.7 The transactions contemplated by the FM Asset Purchase Agreement
          have been consummated and the transactions contemplated by the AM
          Asset Purchase Agreement have failed to be consummated concurrently
          therewith for reasons other than (a) Buyer's material breach of any
          representations, warranties or covenants under this Agreement in any
          respect, (b) Seller's failure to cause Artlite to perform the actions
          that Seller has agreed to cause Artlite to perform under Section 7.2.1
          or 7.2.2, (c) Seller's failure to prohibit Artlite from taking certain
          actions that Seller has agreed to cause Artlite not to take under
          Section 6.2, (d) Seller's failure to deliver one or more items
          required to be delivered under Section 9.1 solely due to the failure
          by Artlite or any of its affiliates to perform the necessary actions
          to cause such delivery or (e) breach of the representations and
          warranties set forth in Article IV solely due to or solely relating to
          Artlite.

          7.5   Seller's Right to Terminate. Seller, at its option, may
terminate this Agreement, so long as Seller is not then in material default
under or material breach of this Agreement, upon the happening of any of the
following events:

          7.5.1 The KEYH Assignment Application is designated for a hearing
          before an administrative law judge unless the KEYH Assignment
          Application is so designated as a result of any action taken by either
          Artlite or Seller; or

          7.5.2 Buyer is in material breach of this Agreement ten business days
          after notice of breach and has not commenced and continued to
          prosecute diligently a cure therefor or such breach is or becomes
          incurable.

          7.6   Risk of Loss.

          7.6.1 The risk of loss and damage, whether by force majeure or for any
          other reason, to the Purchased Assets or the operation of Station KEYH
          between the date of this Agreement and the KEYH Closing Date will be
          on Seller. Seller shall take all reasonable steps (including the
          exercise and enforcement of all rights under the Artlite Documents) to
          repair, replace and restore the Purchased Assets as soon as possible
          after any loss or damage, it being understood and agreed that all
          insurance proceeds with respect thereto ("Proceeds") will be applied
          to or reserved for such replacement, restoration or repair, but that
          Seller and Artlite will have no obligation to repair, replace or
          restore in excess of the Proceeds (plus any applicable deductible
          payment). In instances where the loss and damage to the Purchased
          Assets, together with any loss or damage to the Purchased Assets as
          defined in the FM Asset Purchase Agreement, is less than $1,500,000 in
          the aggregate (or, if the loss or damage is to the tower used in the
          operation of the Station KQQK, then $2,500,000 in the aggregate) in
          Buyer's reasonable estimation, Buyer's sole remedy if Seller elects
          not to (or does not cause Artlite to or causes Artlite not to) fully
          repair, replace or restore will be to close in

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<PAGE>

          accordance with Section 7.6.3 below. In instances where the loss and
          damage to the Purchased Assets, together with any loss or damage to
          the Purchased Assets as defined in the FM Asset Purchase Agreement, is
          equal to or greater than $1,500,000 (net of insurance proceeds to the
          extent received and applied to repair, replace or restore the damaged
          Purchased Assets or the Purchased Assets as defined in the FM Asset
          Purchase Agreement), in the aggregate (or, if the loss or damage is to
          the tower used in the operation of the Station KQQK, then $2,500,000
          (net of insurance proceeds to the extent received and applied) in the
          aggregate), in Buyer's reasonable estimation, Buyer's sole remedies if
          Seller elects not to (or does not cause Artlite to or causes Artlite
          not to) fully repair, replace or restore will be (i) to terminate both
          this Agreement and, prior to an FM Only Closing, the FM Asset Purchase
          Agreement, in which case the Escrow Deposit will be delivered to LBI
          Holdings, or (ii) to close in accordance with Section 7.6.3 below.

          7.6.2 In the event of any damage or event that prevents broadcast
          transmissions of Station KEYH in the normal and usual manner and
          substantially in accordance with the KEYH FCC Licenses (other than
          scheduled ordinary course maintenance), Seller will give prompt notice
          thereof to Buyer and Buyer, in addition to its other rights and
          remedies, will have the right to postpone the KEYH Closing Date until
          transmission in accordance with the KEYH FCC Licenses has been
          resumed. The postponed KEYH Closing Date will be any date within the
          effective period of the FCC's consent to assignment of the KEYH FCC
          Licenses to LBI Sub as Buyer may designate by not less than five
          business days' prior written notice to Seller. During the period of
          postponement, Seller shall use its best efforts to resume broadcast
          transmissions. In the event transmission in accordance with the KEYH
          FCC Licenses cannot be resumed within the effective period of the
          FCC's consent to assignment of the KEYH FCC Licenses to LBI Sub, the
          Parties will join in (and to the extent Artlite's cooperation is
          desirable or necessary, Seller will be responsible, at its expense,
          for causing Artlite to join in) an application or applications
          requesting the FCC to extend the effective period of its consent for
          one or more periods not to exceed 120 days in the aggregate. If
          transmission in accordance with the KEYH FCC Licenses has not been
          resumed so that the KEYH Closing Date does not occur within such
          extended period, or any agreed extension thereof, Buyer will have the
          right, by giving written notice to Seller within five business days
          after the expiration of such 120-day period, or any agreed extension
          thereof, to terminate this Agreement and, prior to an FM Only Closing,
          the FM Asset Purchase Agreement forthwith without any further
          obligation, in which case the Escrow Deposit will be delivered to LBI
          Holdings. In the event transmission is not in accordance with the KEYH
          FCC Licenses but substantially in accordance with the KEYH FCC
          Licenses, Buyer agrees to negotiate in good faith with Seller for no
          more than twenty business days prior to exercising its rights under
          this Section (which negotiation shall not result in an extension of
          the 120 day period).

          7.6.3 If any loss of or damage to the Purchased Assets (including but
          not limited to any Tower or any Transmitter Building) occurs prior to
          the KEYH Closing

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<PAGE>

          Date and full repair, replacement or restoration of all Purchased
          Assets has not been made on or before the KEYH Closing Date (as the
          KEYH Closing Date may be extended as provided in Section 7.6.2), or
          the cost thereof is greater than the Proceeds (plus any applicable
          deductible), then Buyer will be entitled, but not obligated (except in
          the instances described in the second to the last sentence in Section
          7.6.1), to accept the Purchased Assets in their then-current condition
          and will receive an abatement or reduction in the Purchase Price in an
          amount equal to the difference between the amount necessary to fully
          repair or replace the damaged Purchased Assets and the amount of the
          unused Proceeds, in which case Buyer will be entitled to all the
          unused Proceeds and payment of the deductible amount. If Buyer elects
          to accept (or, in the instance described in the second to the last
          sentence in Section 7.6.1, Buyer accepts) damaged Purchased Assets at
          a reduced Purchase Price, the Parties agree to cooperate in
          determining the amount of the reduction to the Purchase Price in
          accordance with the provisions hereof.

          7.7   Transfer Taxes and FCC Filings; Expenses; Bulk Sales.

          7.7.1 Transfer Taxes; FCC Filings. All federal, state or local taxes
          based on excise, sales or use taxes or similar taxes or costs imposed
          on or in connection with the sale, purchase or transfer of the
          Purchased Assets and assumption of the Assumed Contracts by Buyer
          pursuant hereto will be borne one-half by Buyer and one-half by
          Seller; provided, however, if the representation by Seller made
          pursuant to the last sentence of Section 4.5 should be false, all such
          taxes payable by Buyer shall be considered a loss resulting from
          breach of such representation by Seller and be subject to
          indemnification pursuant to Article X. All FCC filing fees relating to
          the KEYH Assignment Application will be shared equally by Buyer and
          Seller; provided, further, that to the extent that such filing fees
          are increased as a result of the need to assign any assets or KEYH FCC
          Licenses or Permits from Artlite to Seller, Buyer will bear no such
          portion of such increased costs. Buyer shall be responsible for the
          payment of the filing fees in connection with the filing (if any)
          required under the HSRA.

          7.7.2 Expenses. Except as otherwise provided herein, Buyer and Seller
          shall each pay its own expenses incident to the negotiation,
          preparation and performance of this Agreement and consummation of the
          transaction contemplated hereby, including but not limited to the
          fees, expenses and disbursements of its accountants and counsel. Buyer
          shall have no responsibility for any fees or expenses incurred by
          Artlite in connection with the transactions contemplated by this
          Agreement or the Artlite Documents.

          7.7.3 Compliance With Bulk Sales Laws. If applicable, any loss,
          liability, obligation or cost suffered by Seller or Buyer as the
          result of the failure of Seller or Buyer to comply with the provisions
          of any bulk sales laws applicable to the transfer of the Purchased
          Assets as contemplated by this Agreement will be borne one-half by
          Buyer and one-half by Seller.

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<PAGE>

          7.8  Termination of KEYH Local Marketing Agreement. Seller
acknowledges that as of the KEYH Closing Date it will no longer have any rights
under the KEYH Local Marketing Agreement with respect to Station KEYH and that
Buyer shall not assume any obligations to Seller or Artlite thereunder.

          7.9  Invoices. If advertisers whose advertisements air on Station KEYH
on or after the Effective Date make payments prior to, on or after the
consummation of the transactions contemplated by this Agreement to Seller rather
than to Buyer with respect to such advertisements, Seller shall hold such
amounts in trust for Buyer, shall promptly notify Buyer of the receipt of such
funds and shall forward such amounts to Buyer within five business days. If
advertisers whose advertisements aired on Station KEYH prior to the Effective
Date make payments prior to, on or after the consummation of the transactions
contemplated by this Agreement to Buyer rather than to Seller with respect to
such pre-Effective Date advertisements, Buyer shall hold such amounts in trust
for Sellers, shall promptly notify Sellers of the receipt of such funds and
shall forward such amounts to Sellers within five business days.

          7.10 Determination of KEYH Closing Date. The KEYH Closing Date shall
be 5:00 p.m. CST on the 5th business day following the KEYH Final Grant Day or
such other time as is mutually agreed to in writing by the Parties; provided,
however, that (i) at Buyer's election, the KEYH Closing Date shall be deemed not
to have occurred if the purchase and sale transaction under the FM Asset
Purchase Agreement has not theretofore been consummated and (ii) at Buyer's
election, Buyer may cause the KEYH Closing Date to occur prior to the KEYH Final
Grant Day so long as the Initial Grant has occurred. Buyer shall in the case of
clause (ii) above choose a date no earlier than 5:00 p.m. on the 5th business
day following notice of such determination to Seller; provided, however, that
Buyer may revoke such determination at any time prior to the consummation of the
transactions contemplated hereby with respect to Station KEYH, in which case,
the KEYH Closing Date shall be determined pursuant to the remainder of this
Section 7.10.

          7.11 Mutual Releases. If this Agreement terminates after an FM Only
Closing and the transactions contemplated by this Agreement, including but not
limited to transfer of the KEYH FCC Licenses and Permits to LBI License Sub and
the transfer of the Purchased Assets to LBI Sub, have not occurred, then the
Escrow Deposit shall be delivered to LBI Holdings and Buyer and Seller will
execute mutual releases with respect to this Agreement in form and substance
reasonably satisfactory to the Parties.

          7.12 Artlite. Seller shall and shall cause Artlite to ratify the
Artlite Documents to the extent that such documents were entered into at a time
that the Artlite Entity which was a party to such a document was a corporation
with "forfeited existence" or were entered into using an incorrect corporate
name. Seller shall make best efforts to correct and cause Artlite to correct any
name discrepancies in filings with the FCC by Artlite or Seller and to have
Artlite's name properly recorded in the FCC database (and shall cause Artlite to
send one or more letters to the FCC in form and substance reasonably
satisfactory to Buyer with respect to such name discrepancy).

                                       35

<PAGE>

          7.13  Recipient Agreement. Seller shall use its best efforts to cause
all Sales Proceeds Recipients to promptly after the date hereof execute and
deliver the Recipient Agreement.

          7.14  Auxiliary License Application. At the request of Buyer, Seller
shall use its best efforts to cause Artlite to file such documents with the FCC
as are necessary to transfer the location of the license for Aural Studio
Transmitter Link WLG401 to a location designated by Buyer.

          7.15  Further Estoppel Certificate. Seller shall use its best efforts
to obtain the lessor estoppel certificate in the form attached to this Agreement
as Exhibit F together with such changes as may reasonably be negotiated by the
Parties with respect to each lease (including confirmation that each lease is in
full force and effect and no defaults exist thereunder and confirmation of the
terms of each lease).

                                  ARTICLE VIII
                               CLOSING CONDITIONS

          8.1   Conditions Precedent to Buyer's Obligations. The obligation of
Buyer to consummate the transaction contemplated hereby is subject to the
fulfillment prior to and as of the consummation of the transaction contemplated
hereby on the KEYH Closing Date of each of the following conditions, each of
which may be waived (but only by an express written waiver) in the sole
discretion of Buyer:

          8.1.1 Commission Approval. The definition of KEYH Closing Date shall
          have been satisfied.

          8.1.2 Representations and Warranties. All representations and
          warranties of Seller contained in this Agreement shall be true and
          correct in all material respects at and as of the KEYH Closing Date as
          if made on the KEYH Closing Date except as specifically contemplated
          by this Agreement (it being understood and agreed by the Parties
          hereto that for purposes of this Section 8.1.2, that the
          representations and warranties of Seller contained in this Agreement
          or in any certificates delivered pursuant hereto shall mean such
          representations and warranties of Seller after disregarding all
          knowledge qualifications of Seller contained in such representations
          and warranties that are in parenthetical (including without limitation
          such knowledge qualifications in Sections 4.3.1, 4.3.2, 4.3.3, 4.3.4,
          4.3.5, 4.4, 4.5, 4.7, 4.9, 4.10, 4.11, 4.13, 4.14, 4.15, 4.17, 4.18
          and 9.1.10) and that such representations and warranties shall not be
          qualified in any respect by such knowledge qualifications that are in
          parenthetical).

          8.1.3 Performance. Seller shall have performed and complied in all
          material respects with the covenants, agreements and conditions
          required by this Agreement to be performed or complied with by it
          prior to and on the KEYH Closing Date.

          8.1.4 FCC Licenses. Artlite shall be the holder of the KEYH FCC
          Licenses. There shall not have been any modification of any of the
          KEYH FCC Licenses

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<PAGE>

          (excluding any modification of FCC rules, regulations or policies
          affecting all members of the class of holders of FCC licenses to which
          Seller or Artlite belongs as the holder of the KEYH FCC Licenses) that
          affects Buyer's ability to conduct the operation of Station KEYH after
          the KEYH Closing Date in accordance with Seller's past operations or
          that otherwise has or is reasonably likely to have a material, adverse
          effect on Station KEYH. No proceeding shall be pending, the effect of
          which would be to revoke, cancel, fail to renew, suspend, impair or
          modify adversely any of the KEYH FCC Licenses specifically.

          8.1.5 Consents. All Required Consents shall have been obtained and
          delivered to Buyer. Such Required Consents shall include, without
          limitation, (i) executed consents and releases substantially in the
          form of Exhibit H annexed hereto from the creditors of Seller or
          Artlite set forth on Schedule III consenting to the transaction
          contemplated hereby and releasing their Encumbrances relating to the
          Purchased Assets (together with executed UCC termination statements,
          amendments to UCC financing statements and other documents and
          instruments implementing such release) and (ii) other Required
          Consents in form and substance reasonably satisfactory to Buyer. In
          addition, the lessors under the leases for the Transmitter Sites shall
          have executed and delivered to Buyer estoppels in substantially the
          form of the document described in clause (12) of the Artlite Documents
          and presented prior to the date hereof to Buyer.

          8.1.6 Litigation and Insolvency. Except for matters affecting the
          radio broadcasting industry generally, no litigation, action, suit,
          judgment, proceeding, complaint or investigation shall be pending or
          outstanding before any forum, court, or governmental body, department
          or agency of any kind, relating to the operation of Station KEYH or
          which has the stated purpose or the probable effect of enjoining or
          preventing the consummation of this Agreement, or the transaction
          contemplated hereby or to recover damages by reason thereof, or which
          questions the validity of any action taken or to be taken pursuant to
          or in connection with this Agreement; provided that if there is
          pending any litigation relating to Station -------- KEYH that could
          not reasonably be expected to or would not reasonably be expected to
          adversely affect the operation of Station KEYH in accordance with
          Seller's past operations or that could not reasonably be expected to
          or would not reasonably be expected to prevent a consummation of the
          transactions contemplated hereby, then the existence of such
          litigation shall not be considered as the failure of a condition to
          Buyer's obligation to close if its lenders agree to fund the loans
          that enable the consummation of the transactions contemplated hereby
          despite the existence of such litigation (and LBI Holdings, Buyer and
          Seller shall cooperate to seek to convince such lenders (but shall not
          be obligated to mislead such lenders in any way) to fund such loans
          despite the existence of such litigation). No insolvency proceedings
          of any character including, without limitation, receivership,
          reorganization, composition or arrangement with creditors, voluntary
          or involuntary, affecting Seller, Artlite or any of their respective
          assets or properties (other than the stock of its subsidiaries (other
          than any subsidiary that is a Seller hereunder)), shall be pending,
          and neither Seller nor

                                       37

<PAGE>

          Artlite shall have taken any action in contemplation of, or which
          would constitute the basis for, the institution of any such insolvency
          proceedings.

          8.1.7  Artlite. Seller shall have delivered to LBI Holdings and Buyer
          evidence in form and substance reasonably satisfactory to LBI Holdings
          and Buyer and their counsel that each of Artlite and the other Artlite
          Entities is a corporation validly existing and in good standing under
          the laws of the State of Texas and that it is no longer a corporation
          with "forfeited existence".

          8.1.8  Termination of KEYH Local Marketing Agreement. The KEYH Local
          Marketing Agreement shall have terminated and neither Seller nor
          Artlite shall have any rights with regards to the Purchased Assets or
          Station KEYH (it being understood that lessors under the applicable
          leases will continue to be the lessors thereunder).

          8.1.9  Recipient Agreement. No parties to the Sale Proceeds Recipients
          (other than LBI Holdings and Buyer) shall be in breach of the
          Recipient Agreement.

          8.1.10 Simultaneous Closing or FM Only Closing. The FM Only Closing
          shall have previously occurred or the consummation of the purchase and
          sale transactions contemplated hereunder shall occur as part of a
          Simultaneous Closing.

          8.1.11 Satisfaction of Schedule II. The requirement in Section B of
          Schedule II shall be satisfied.

          8.2    Conditions Precedent to Seller's Obligations. The obligation of
Seller to consummate the transaction contemplated hereby is subject to the
fulfillment prior to and as of the consummation of the transaction contemplated
hereby on the KEYH Closing Date of each of the following conditions, each of
which may be waived (but only by an express written waiver) in the sole
discretion of Seller:

          8.2.1  Commission Approval. The condition set forth in Section 8.1.1
          shall have been satisfied.

          8.2.2  Representations and Warranties. All representations and
          warranties of LBI Holdings and Buyer contained in this Agreement shall
          be true and correct in all material respects at and as of the KEYH
          Closing Date as if made on the KEYH Closing Date, except as
          specifically contemplated by this Agreement.

          8.2.3  Performance. LBI Holdings and Buyer shall each have performed
          and complied in all material respects with the covenants, agreements
          and conditions required by this Agreement to be performed or complied
          with by it prior to and at the KEYH Closing Date.

          8.2.4  Litigation and Insolvency. Except for matters affecting the
          radio broadcasting industry generally, no litigation, action, suit,
          judgment, proceeding, complaint or investigation shall be pending or
          outstanding before any forum,

                                       38

<PAGE>

          court or governmental body, department or agency of any kind which has
          the stated purpose or the probable effect of enjoining or preventing
          the consummation of this Agreement or the transaction contemplated
          hereby or to recover damages by reason thereof, or which questions the
          validity of any action taken or to be taken pursuant to or in
          connection with this Agreement; provided that if there is pending any
          litigation relating to Station KEYH that could not reasonably be
          expected to or would not reasonably be expected to adversely affect
          the operation of Station KEYH in accordance with Seller's past
          operations or that could not reasonably be expected to or would not
          reasonably be expected to prevent a consummation of the transactions
          contemplated hereby then the existence of such litigation shall not be
          considered as the failure of a condition to Seller's obligation to
          close if Buyer's lenders agree to fund the loans that enable the
          consummation of the transactions contemplated hereby despite the
          existence of such litigation (and LBI Holdings, Buyer and Seller shall
          cooperate to seek to convince such lenders (but shall not be obligated
          to mislead such lenders in any way) to fund such loans despite the
          existence of such litigation). No insolvency proceedings of any
          character including, without limitation, reorganization, receivership,
          composition or arrangement with creditors, voluntary or involuntary,
          affecting Buyer or any of its assets or properties shall be pending,
          and Buyer shall not have taken any action in contemplation of, or
          which would constitute the basis for, the institution of any such
          insolvency proceedings.

          8.2.5 Simultaneous Closing or FM Only Closing. The FM Only Closing
          shall have previously occurred or the consummation of the purchase and
          sale transactions contemplated hereunder shall occur as part of a
          Simultaneous Closing.

                                   ARTICLE IX
                      ITEMS TO BE DELIVERED AT THE CLOSING

          9.1   Seller's Performance At Closing. On the KEYH Closing Date, at
the Closing Place (i) Seller shall have executed and delivered (or shall have
caused Artlite through Seller, as the case may be, to execute and deliver) the
assignments relating to the KEYH FCC Licenses and the Permits and all
applications therefor, together with any renewals, extensions, additions or
modifications thereof, (ii) Seller shall have executed and delivered to Buyer
(or shall have caused Artlite to execute and deliver) all bills of sale,
endorsements, assignments and other instruments of conveyance and transfer
reasonably satisfactory in form and substance to Buyer and its counsel,
effecting the sale, transfer, assignment and conveyance of the Purchased Assets
to Buyer. Without limiting the generality of the foregoing, Seller shall have
executed and delivered (or caused to be executed and delivered) or shall have
transferred or performed, as applicable, the following:

          9.1.1 One or more bills of sale executed by Artlite conveying to
          Seller all of the Artlite Assets and one or more bills of sale
          conveying to LBI all of the Tangible Personal Property and
          Intellectual Property to be acquired by Buyer hereunder;

                                       39

<PAGE>

          9.1.2  An assignment assigning to LBI Sub the KEYH FCC Licenses from
          Seller to document the second step of the two-step pass through of
          such KEYH FCC Licenses to LBI Sub;

          9.1.3  An assignment assigning to Seller the KEYH FCC Licenses from
          Artlite to document the first step of the two-step pass through of
          such KEYH FCC Licenses to LBI Sub;

          9.1.4  An assignment assigning to LBI each of the Assumed Contracts
          together with the Required Consents and the original copies of the
          Assumed Contracts;

          9.1.5  To the extent not previously transferred pursuant to Section
          6.1.10, the data, documents, copies, files, records and logs referred
          to in Section 2.1.4 and Seller shall have transferred data from
          Seller's computer systems to Buyer's computer systems on or prior to
          the KEYH Final Grant Day;

          9.1.6  Proof of payment of prepaid expenses made by Seller for
          services to be provided to Station KEYH, after the KEYH Closing Date
          under the Assumed Contracts;

          9.1.7  Seller shall have paid LBI an amount equal to the aggregate
          advance payments by advertisers and other advance payments for
          services to be provided by Station KEYH after the KEYH Closing Date
          under the Assumed Contracts (calculated as of 5 days before, and
          updated as of, the KEYH Closing Date);

          9.1.8  Opinions of Seller's counsel, Seller's Texas counsel and
          Seller's FCC counsel, each dated as of the KEYH Closing Date
          substantially in the form of Exhibits "B-1", "B-2" and "C";

          9.1.9  Copies of resolutions of the Board of Directors of EDC, EDC Sub
          and EDC License Sub, in each case certified by the Party's Secretary,
          authorizing the execution, delivery and performance of this Agreement
          and the transaction contemplated hereby;

          9.1.10 A certificate, dated as of the KEYH Closing Date, executed by
          the President and Chief Executive Officer of Seller, to the effect
          that, (i) the representations and warranties of Seller contained in
          this Agreement are true and complete in all material respects on and
          as of the KEYH Closing Date as though made on and as of the KEYH
          Closing Date, except as specifically contemplated by this Agreement
          (it being understood and agreed by the Parties hereto that for
          purposes of this Section 9.1.10, that the representations and
          warranties of Seller contained in this Agreement or any certificates
          delivered pursuant hereto shall mean such representations and
          warranties of Seller after disregarding all knowledge qualifications
          of Seller contained in such representations and warranties that are in
          parenthetical (including without limitation such knowledge
          qualifications in Sections 4.3.1, 4.3.2, 4.3.3, 4.3.4, 4.3.5, 4.4,
          4.5, 4.7, 4.9, 4.10, 4.11, 4.13, 4.14, 4.15, 4.17, 4.18 and 9.1.10)
          and that such representations and warranties shall not be qualified in
          any respect by such knowledge qualifications

                                       40

<PAGE>

          in parenthetical); (ii) Seller has complied in all material respects
          with or performed in all material respects all terms, covenants,
          agreements and conditions required by this Agreement to be complied
          with or performed by it prior to and at the KEYH Closing Date; (iii)
          all Required Consents have been obtained by Seller and Artlite and
          delivered to Buyer; (iv) except for matters affecting the radio
          broadcasting industry generally and except for such litigation
          described in the proviso in Section 8.1.6, each of which has been
          disclosed in writing to Buyer, no litigation, action, suit, judgment,
          proceeding or investigation is pending or outstanding or, to the
          knowledge of Seller (after due inquiry with Artlite) or (to Seller's
          knowledge) Artlite, threatened, before any forum, court, or
          governmental body, department or agency of any kind, relating to the
          operation of Station KEYH or which has the stated purpose or the
          probable effect of enjoining or preventing the consummation of this
          Agreement or the transaction contemplated hereby or to recover damages
          by reason thereof, or which questions the validity of any action taken
          or to be taken pursuant to or in connection with this Agreement; (v)
          to the knowledge of Seller (after due inquiry with Artlite) or (to
          Seller's knowledge) Artlite, no insolvency proceedings of any
          character including, without limitation, receivership, reorganization,
          composition or arrangement with creditors, voluntary or involuntary,
          affecting Seller or Artlite or any of their respective material assets
          or properties is pending, and neither Seller nor Artlite has taken any
          action in contemplation of, or which would constitute the basis for,
          the institution of any such insolvency proceedings; (vi) the aggregate
          amount of advance payments by advertisers and other advance payments
          for services to be provided by or for Station KEYH after the KEYH
          Closing Date under the Assumed Contracts referred to in Section 2.1.2
          equals the amount paid to Buyer pursuant to Section 9.1.7 and (vi)
          Seller has performed the requirements of this Section 9.1;

          9.1.11 Written evidence reasonably satisfactory to Buyer that Seller
          has validly exercised its rights to purchase Station KEYH (including
          any related Purchased Assets and KEYH FCC Licenses) under the Artlite
          Purchase Agreement and has completed the acquisition of the Artlite
          Assets, including evidence in form and substance reasonably
          satisfactory to Buyer that Artlite shall have executed and delivered
          to Seller all bills of sale, endorsements, assignments and other
          instruments of conveyance and transfer reasonably satisfactory in form
          and substance to Buyer and its counsel, effecting the sale, transfer,
          assignment and conveyance of such Artlite Assets to Seller, including,
          without limitation, one or more bills of sale conveying to Seller such
          Artlite Assets and copies of the Required Consents required in
          connection with the consummation of such transactions;

          9.1.12 Written instructions to terminate the Escrow Agreement and
          deliver the Escrow Deposit to LBI Holdings executed by EDC; and

          9.1.13 Such other instruments of transfer, documents or certificates
          requested by Buyer as may be necessary or appropriate to transfer to
          and vest in Buyer all of Seller's right, title and interest in and to
          the Purchased Assets or as reasonably

                                       41

<PAGE>

          may be requested by Buyer to evidence consummation of this Agreement
          and the transaction contemplated hereby.

          9.2   Buyer's Performance at Closing. On the KEYH Closing Date at the
Closing Place, Buyer will execute and deliver or cause to be delivered to
Seller:

          9.2.1 The monies payable as set forth in Section 3.1.1 by wire
          transfer of federal funds;

          9.2.2 An opinion of Buyer's counsel dated as of the KEYH Closing Date
          substantially in the form of Exhibit "D";

          9.2.3 Copies of resolutions of the Boards of Directors of LBI
          Holdings, LBI and LBI Sub, in each case certified by its Secretary,
          authorizing the execution, delivery and performance of this Agreement
          and the transaction contemplated hereby;

          9.2.4 A certificate, dated as of the KEYH Closing Date, executed by
          the Executive Vice President of LBI Holdings and Buyer, to the effect
          that (i) the representations and warranties of LBI Holdings and Buyer
          contained in this Agreement are true and complete in all material
          respects on and as of the KEYH Closing Date as though made on and as
          of the KEYH Closing Date, except as specifically contemplated by this
          Agreement; (ii) LBI Holdings and Buyer have each complied in all
          material respects with or performed in all material respects all
          terms, covenants, agreements and conditions required by this Agreement
          to be complied with or performed by it prior to and at the KEYH
          Closing Date; (iii) except for matters affecting the radio
          broadcasting industry generally and except for such litigation
          described in the proviso in Section 8.2.4, no litigation, action,
          suit, judgment, proceeding or investigation is pending or outstanding
          or, to LBI Holdings' and Buyers' knowledge, threatened, before any
          forum, court or governmental body, department or agency of any kind
          which has the stated purpose or the probable affect of enjoining or
          preventing the consummation of this Agreement or the transaction
          contemplated hereby or to recover damages by reason thereof, or which
          questions the validity of any action taken or to be taken pursuant to
          or in connection with this Agreement; (iv) to the knowledge of LBI
          Holdings and Buyer, no insolvency proceedings of any character
          including, without limitation, receivership, reorganization,
          composition or arrangement with creditors, voluntary or involuntary,
          affecting LBI Holdings or Buyer or any of their respective assets or
          properties is pending, and neither LBI Holdings nor Buyer has taken
          any action in contemplation of, or which would constitute the basis
          for, the institution of any such insolvency proceedings; and (v) LBI
          Holdings and Buyer have each performed the requirements of this
          Section 9.2;

          9.2.5 A writing evidencing the assumption by Buyer of each of the
          Assumed Contracts consistent with the provisions of this Agreement
          reasonably satisfactory in form and substance to Seller and its
          counsel; and

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<PAGE>

          9.2.6  Such other instruments, documents and certificates as
          reasonably may be requested by Seller to consummate this Agreement and
          the transaction contemplated hereby.

                                   ARTICLE X
                                 INDEMNIFICATION

          10.1   Indemnification by Seller. It is understood and agreed that LBI
Holdings and Buyer do not assume and will not be obligated to pay any liability
of Seller under the terms of this Agreement or otherwise and will not be
obligated to perform any obligations of Seller of any kind or manner, except in
connection with the Assumed Contracts and with respect thereto only to the
extent such obligations arise subsequent to the consummation of the transaction
contemplated hereby on the KEYH Closing Date. Seller, hereby agrees to
indemnify, defend and hold harmless LBI Holdings and Buyer, their successors and
assigns, for a period of eighteen months following the consummation of the
transaction contemplated hereby on the KEYH Closing Date, from and against:

          10.1.1 Any and all Damages occasioned by, arising out of or resulting
          from the operation of Station KEYH prior to the KEYH Closing Date
          (other than such Damages arising directly from Buyer's actions under
          the AM Local Marketing Agreement), including, but not limited to, any
          and all claims, liabilities and obligations arising or required to be
          performed prior to the KEYH Closing Date under any of the Assumed
          Contracts or otherwise with respect to Seller's or Artlite's ownership
          and operation of Station KEYH prior to the KEYH Closing Date;

          10.1.2 Any and all Damages occasioned by, arising out of or resulting
          from any material misrepresentation, material breach of warranty or
          covenant, or material default or material nonfulfillment of any
          agreement on the part of Seller under this Agreement, or from any
          material misrepresentation in or material breach of any certificate,
          agreement, appendix, Schedule, or other instrument furnished to LBI
          Holdings or Buyer pursuant to this Agreement or in connection with the
          transaction contemplated hereby (it being understood and agreed by the
          Parties hereto that for purposes of this Section 10.1.2, that for
          purposes of determining such misrepresentation, breach of warranty or
          covenant, or material default or material nonfulfillment, all
          knowledge qualifications in the representations and warranties of
          Seller contained in this Agreement or in any certificates delivered
          pursuant hereto that are in parenthetical (including without
          limitation such knowledge qualifications in Sections 4.3.1, 4.3.2,
          4.3.3, 4.3.4, 4.3.5, 4.4, 4.5, 4.7, 4.9, 4.10, 4.11, 4.13, 4.14, 4.15,
          4.17, 4.18 and 9.1.10) shall be disregarded and no such representation
          or warranty shall be qualified in any respect by such knowledge
          qualifications in parenthetical); provided, that any breach of Section
          7.9 shall be deemed material regardless of the cash value of such
          breach;

          10.1.3 Any and all Damages occasioned by, arising out of or resulting
          from any legal, administrative, or tax proceedings pursuant to which
          Seller is or could be made liable for any taxes, penalties, interest,
          or other charges and the liability for

                                       43

<PAGE>

          which is extended to LBI Holdings or Buyer as transferee of the
          business of Station KEYH or otherwise for any transferee liability for
          any taxes, penalties, or interest due or to become due from Seller;
          and

          10.1.4 Any and all Damages occasioned by, arising out of or resulting
          from any claim by Artlite or any other person or entity that any
          agent, broker, investment or commercial banker, person or firm acting
          on behalf of Artlite or under authority of Artlite is or will be
          entitled to any broker, finder, financial advisor fee or any other
          commission or similar fee directly or indirectly in connection with
          the transaction contemplated by this Agreement.

          10.2   Indemnification by LBI Holdings and Buyer. LBI Holdings and
Buyer agree to indemnify, defend and hold harmless Seller, its successors and
assigns, for a period of eighteen months following the consummation of the
transaction contemplated hereby on the KEYH Closing Date from and against:

          10.2.1 Any and all Damages occasioned by, arising out of or resulting
          from the operation of Station KEYH on or subsequent to the KEYH
          Closing Date, including, but not limited to, any and all claims,
          liabilities and obligations arising or required to be performed on or
          subsequent to the KEYH Closing Date under any of the Assumed Contracts
          or otherwise with respect to Buyer's ownership and operation of
          Station KEYH from and after the KEYH Closing Date; and

          10.2.2 Any and all Damages occasioned by, arising out of or resulting
          from any material misrepresentation, material breach of warranty or
          covenant, or material default or material nonfulfillment, of any
          agreement on the part of LBI Holdings or Buyer under this Agreement,
          or from any material misrepresentation in or material breach of any
          certificate, agreement, appendix, Schedule or other instrument
          furnished to Seller pursuant to this Agreement or in connection with
          the transaction contemplated hereby; provided, that any breach of
          Section 7.9 shall be deemed material regardless of the cash value of
          such breach.

          10.3   Third-Party Claims. In the event of third party claims, each
Party ("Indemnified Party") shall give written notice to the other Party
("Indemnifying Party") as soon as practicable and in no event later than ten
business days after the Indemnified Party has knowledge of any facts which in
its opinion entitle or may entitle it to indemnification under this Section
10.3. Seller, on the one hand, and LBI Holdings and Buyer, on the other, shall
be considered a single Party for purposes of this Section 10.3 and Section 10.4.
However, failure to give such notice will not preclude the Indemnified Party
from seeking indemnification hereunder, unless, and to the extent that, such
failure adversely affects to a material degree the Indemnifying Party's ability
to defend against such a claim. The Indemnifying Party will promptly defend such
a claim by counsel approved by the Indemnified Party, which approval shall not
be unreasonably withheld, and the Indemnified Party may appear at any
proceeding, at its own cost, by counsel of its own choosing and will otherwise
reasonably cooperate in the defense of such claim, provided that the
Indemnifying Party shall promptly reimburse the Indemnified Party all reasonable
costs, expenses and attorneys' fees incurred in the course of cooperating in the
defense of such claim. The Indemnifying Party shall be responsible for all

                                       44

<PAGE>

costs and expenses of any settlement. If the Indemnifying Party within ten
business days after notice of a claim fails to defend the Indemnified Party, the
Indemnified Party will be entitled to undertake the defense, compromise or
settlement of such claim at the expense of and for the account and risk of the
Indemnifying Party. Anything in this Section to the contrary notwithstanding:

          10.3.1 If LBI Holdings or Buyer is the Indemnified Party and in the
          reasonable judgment of LBI Holdings or Buyer there is a reasonable
          probability that a claim may materially and adversely affect the
          Indemnified Party or its continued operation of Station KEYH, the
          Indemnified Party will have the right, at its own cost and expense, to
          undertake the prosecution, compromise and settlement of such claim,
          and the Indemnifying Party will cooperate with the Indemnified Party;

          10.3.2 If the facts giving rise to indemnification hereunder involve a
          possible claim by the Indemnified Party against a third party, the
          Indemnified Party will have the right, at its own cost and expense, to
          undertake the prosecution, compromise and settlement of such claim;
          and

          10.3.3 The Indemnifying Party will not, without the consent of the
          Indemnified Party, enter into or settle or compromise any claim or
          consent to any entry of judgment which (i) in the reasonable judgment
          of LBI Holdings or Buyer may materially and adversely affect LBI
          Holdings or Buyer or their continued operation of Station KEYH, and
          (ii) does not include as an unconditional term thereof the giving by
          the claimant or the plaintiff to the Indemnified Party of a full and
          complete release from all liability in respect to such claim.

          10.4   Cap and Basket. Neither Party will be entitled to
indemnification under this Article X until Damages to such Party (combined with
any Damages to such Party under the FM Purchase Agreement) exceed $50,000 in the
aggregate (except for claims pursuant to Section 7.9 of this Agreement and
Section 7.8 of the FM Asset Purchase Agreement, which shall be reimbursed from
the first dollar for both parties). Once Damages to any Party (combined with any
Damages to such Party under the FM Purchase Agreement) exceed $50,000 in the
aggregate (excluding all claims made pursuant to Section 7.9 of this Agreement
and Section 7.8 of the FM Asset Purchase Agreement), such Party will be entitled
to recover the entire amount of the Damages to the maximum extent permitted by
this Agreement. The Parties agree that any materiality qualification set forth
in this Agreement shall not be taken into account in determining the magnitude
of Damages occasioned by any breach for purposes of calculating whether such
$50,000 threshold has been reached. The Parties agree that (i) with respect to
all claims made pursuant to Article X hereof or Article X of the FM Asset
Purchase Agreement during the period beginning on the date of consummation of
the transactions contemplated by the FM Asset Purchase Agreement on the KQQK
Closing Date and ending on the twelve month anniversary of such date, the
maximum aggregate amount for which either Buyer and LBI Holdings on the one hand
or Seller on the other hand will be responsible for pursuant to this Agreement
and the FM Asset Purchase Agreement, is $1,500,000 in the aggregate and (ii)
with respect to all claims made pursuant to Article X hereof or Article X of the
FM Asset Purchase Agreement during the period commencing on the date after the
end of the applicable period set forth in clause (i) of this sentence and ending
on the twenty four month anniversary of the

                                       45

<PAGE>

consummation of the transaction contemplated by this Agreement (or if the
purchase and sale transaction contemplated under this Agreement does not occur,
ending on the later of (x) the eighteenth month anniversary of the KQQK Closing
Date or (y) the date on which this Agreement is terminated), the maximum
aggregate amount for which either Buyer and LBI Holdings on one hand or Seller
on the other hand will be responsible for pursuant to this Agreement and the FM
Asset Purchase Agreement, is $700,000 (above and beyond up to $800,000 of claims
made during the period set forth in clause (i) of this sentence); provided that
the caps set forth in this paragraph shall not apply to any claims made under
this Agreement prior to the consummation of the transaction contemplated
hereunder on the KEYH Closing Date.

          10.5 Holdback. LBI Holdings and Buyer shall be entitled to receive any
amounts owing by Seller to LBI Holdings or Buyer pursuant to this Agreement or
the FM Asset Purchase Agreement (including Article X hereof and thereof) from
the Holdback and Seller agrees to promptly give the Holdback Escrow Agent
written instructions to immediately release such amounts from the Holdback to
LBI Holdings. Buyer agrees to promptly give the Holdback Escrow Agent written
instructions to immediately release the amounts as determined by Sections
3.1.4(c) and 3.1.4(d) in the FM Asset Purchase Agreement, to the extent Seller
is entitled to receive such amount.

          10.6 Survival of Representations and Warranties. The representations
and warranties contained in this Agreement or in any Schedule or Exhibit, or in
any certificate or other instrument delivered pursuant to this Agreement, will
survive the consummation of the transaction contemplated hereby on the KEYH
Closing Date for a period of eighteen months; provided that if a claim or notice
is given under this Article X or otherwise with respect to any such
representation and warranty prior to such expiration date, such claim shall
continue (and such representation and warranty shall survive) indefinitely until
such claim is finally resolved.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

          11.1 Notices. All notices, demands and requests, required or permitted
to be given under the provisions of this Agreement shall be in writing and will
be deemed duly given if received on a business day by facsimile at the facsimile
numbers below and telephone notification is provided by the sending Party to the
receiving Party at the time of the facsimile that such notice is about to be
sent (it being understood that a voice mail left on answering machines shall be
deemed to satisfy the requirement of such telephone notification):

          If to Seller:

                  Roel Campos, Esq.
                  El Dorado Communications
                  1980 Post Oak Boulevard, Suite 1500
                  Houston, TX 77058
                        Phone: (713) 968-4500
                        Fax: (713) 968-4518

                                       46

<PAGE>

          Copy (which shall not, by itself, constitute notice) to:

                  Allan Duboff, Esq.
                  Richman, Mann, Chizever, Phillips & Duboff
                  9601 Wilshire
                  Penthouse Suite
                  Beverly Hills, CA 90210
                        Phone: (310) 274-8300
                        Fax: (310) 274-2831

                  Lawrence Roberts, Esq.
                  Skadden, Arps, Slate, Meagher & Flom LLP
                  1440 New York Avenue, N.W.
                  Washington, D.C. 20005
                        Phone: (202) 371-7040
                        Fax: (202) 393-5760

          If to LBI Holdings or Buyer:

                  Mr. Lenard D. Liberman
                  Executive Vice President
                  Liberman Broadcasting Inc.
                  1845 Empire Avenue
                  Burbank, California 91504
                        Phone: BOTH (818) 563-5722 and
                               (281) 493-2900
                        Fax: BOTH (818) 558-4244 and
                             (281) 759-3963

          Copy (which shall not, by itself, constitute notice) to:

                  Joseph K. Kim, Esq.
                  O'Melveny & Myers LLP
                  400 South Hope Street, 15/th/ Floor
                  Los Angeles, California 90071
                        Phone: (213) 430-6000
                        Fax: (213) 430-6407

Or any other such facsimile numbers, telephone numbers and addresses as any
Party may from time to time supply in writing to the other Parties.

          11.2  Benefit and Assignment. This Agreement will be binding upon and
inure to the benefit of the Parties, and their respective successors and
assigns. This Agreement will not be assignable by a Party without the prior
written consent of all of LBI Holdings, Buyer and Seller; provided, however,
that LBI Holdings and Buyer may assign their rights and obligations hereunder
without Seller's consent to any party that is majority owned, directly or
indirectly, by LBI Holdings and LBI Holdings and Buyer may assign their rights
hereunder, without Seller's

                                       47

<PAGE>

consent, to any of their lenders (provided that such assignment to such lenders
does not violate the Communications Act and does not delay the KEYH Closing
Date).

          11.3   Other Documents. The Parties will execute such other documents
as may be reasonably necessary and desirable to the implementation and
consummation of this Agreement. To the extent not obtained prior to the KEYH
Closing Date, Seller shall use its best efforts to cause Artlite to update
registrations of the Towers with the FCC to reflect LBI Sub as the owner of the
Towers following the KEYH Closing Date.

          11.4   Appendices. All Schedules and Exhibits are deemed to be part of
this Agreement and incorporated herein, where applicable, as if fully set forth
herein. Whenever, by the terms of this Agreement or any subsequent agreement of
the Parties, any additions or deletions are made to the Purchased Assets shown
on the Schedules, the Schedules affected shall be appropriately modified to
reflect those changes.

          11.5   Construction. This Agreement will be governed, construed and
enforced in accordance with the laws of the State of Texas.

          11.6   Arbitration. Any dispute, controversy or other matters as to
which the Parties disagree arising out of, relating to or in connection with the
provisions of this Agreement or the interpretation, breach or alleged breach
hereof shall be settled and decided by arbitration conducted by the Judicial
Arbitration and Mediation Service ("JAMS"), subject to the following:

          11.6.1 Any arbitration as set forth above shall be held and conducted
          in Houston, Texas before one arbitrator who shall be selected by
          mutual agreement of the parties. If agreement is not reached on the
          selection of the arbitrator within 30 days after commencement of an
          arbitration by (i) submission of a matter to the JAMS in accordance
          with its Commercial Arbitration Rules and (ii) notice to the other
          party of the initiating party's intention to arbitrate, then such
          arbitrator shall be appointed by the presiding judge of the
          appropriate Houston, Texas Court.

          11.6.2 The arbitrator appointed must be a former or retired judge, or
          an attorney with at least 15 years experience in the broadcast radio
          industry.

          11.6.3 All proceedings involving the parties shall be reported by a
          certified shorthand court reporter and written transcripts of the
          proceedings shall be prepared and made available to the parties.

          11.6.4 The prevailing party shall be awarded reasonable attorneys'
          fees, expert and non-expert witness costs and expenses, and other
          costs and expenses incurred in connection with the arbitration unless
          the arbitrator, for good cause, determines otherwise.

          11.6.5 The dispute shall be heard in accordance with the rules and
          procedures of JAMS and the arbitrator's decision and award shall be
          final and binding.

          11.6.6 Costs and fees of the arbitrator (including the cost of the
          record of transcripts of the arbitration) shall be borne by the
          non-prevailing party, unless the

                                       48

<PAGE>

          arbitrator for good cause determines otherwise. Costs and fees payable
          in advance shall be advanced equally by the parties, subject to
          ultimate payment by the non-prevailing party in accordance with the
          preceding sentence.

          11.6.7  Any Party may initiate an arbitration proceeding under this
          Section 11.6 by written notice to the other Party of his or its
          intention to arbitrate, specifying the dispute or controversy to be
          arbitrated, the amount involved and the remedy sought, and by filing
          with the Dallas, Texas office of the JAMS a copy of said notice
          together with a copy of this Agreement and the fee specified in the
          JAMS fee schedule. In no event shall a demand for arbitration be made
          after the date when institution of legal or equitable proceedings
          based on the claim, dispute or other matter in question would be
          barred by the applicable statute of limitations.

          11.6.8  This agreement to arbitrate shall be specifically enforceable
          under applicable law in any court of competent jurisdiction. The award
          rendered by the arbitrator shall be final and judgment may be entered
          in accordance with applicable law and in any court having jurisdiction
          thereof.

          11.6.9  Notwithstanding anything contained in this Agreement elsewhere
          to the contrary, and unless modified by the arbitrator upon a showing
          of good cause, the arbitration shall proceed upon the following
          schedule: (i) within 30 days from the service of the notice of the
          request to arbitrate, the parties shall select the arbitrator; (ii)
          within 30 days after selection of the arbitrator, the parties shall
          conduct a pre-arbitration conference at which a schedule of
          pre-arbitration discovery shall be set, all pre-arbitration motions
          scheduled and any other necessary pre-arbitration matters decided;
          (iii) all discovery shall be completed within four months following
          the pre-arbitration conference; (iv) all pre-arbitration motions shall
          be filed and briefed so that they may be heard no later than one month
          following the discovery cut-off; (v) the arbitration shall be
          scheduled to commence no later than 30 days after the decision on all
          pre-arbitration motions but in any event no later than six months
          following the service of the notice of arbitration; and (vi) the
          arbitrator shall render his written decision within 30 days following
          the submission of the matter.

          11.6.10 Any monetary award of the arbitrator may include interest at
          the highest prime rate, as published in the Wall Street Journal, plus
          two percent, which interest shall accrue from the date the claim,
          dispute or other matter in question was rightfully due and payable
          under this agreement until the date the award is paid to the
          prevailing party.

          11.6.11 No provision of this Section 11.6 shall limit the right of any
          Party to this Agreement to exercise self-help remedies or to obtain
          provisional or ancillary remedies from a court of competent
          jurisdiction before, after, or during the pendency of any arbitration
          or other proceeding. The exercise of such remedy does not waive the
          right of any party to resort to arbitration.

                                       49

<PAGE>

          11.7 Counterparts. This Agreement may be signed in any number of
counterparts with the same effect as if the signature on each such counterpart
were upon the same instrument.

          11.8 Headings. The headings of the Sections of this Agreement are
inserted as a matter of convenience and for reference purposes only and in no
respect define, limit or describe the scope of this Agreement or the intent of
any Section.

          11.9 Entire Agreement. This Agreement, the AM Local Marketing
Agreement, the FM Asset Purchase Agreement, the FM Local Marketing Agreement,
all Schedules and Exhibits and related agreements entered into as of the date
hereof and all agreements, certificates and instruments delivered by the Parties
pursuant to the terms of this Agreement or the FM Asset Purchase Agreement
represent the entire understanding and agreement between the Parties with
respect to the subject matter hereof, supersede all prior negotiations and
agreements between the Parties, including the Letter of Intent (other than
Section 9 thereof as replaced by Exhibit J hereto, which survives), and can be
amended, supplemented, waived or changed only by an amendment in writing which
makes specific reference to this Agreement, the FM Asset Purchase Agreement or
the amendment, as the case may be, and which is signed by the Party against whom
enforcement of any such amendment, supplement, waiver or modification is sought.

                                       50

<PAGE>

                  IN WITNESS WHEREOF, the Parties have caused this Agreement to
be executed and delivered by their duly authorized officers on the day and year
first above written.

                                          EL DORADO COMMUNICATIONS, INC.

                                          By:  /s/ Roel Campos
                                             -----------------------------
                                              Roel Campos
                                              Senior Vice President

                                          EL DORADO 108, INC.

                                          By:  /s/ Roel Campos
                                             -----------------------------
                                              Roel Campos
                                              Senior Vice President

                                          KXTJ LICENSE, INC.

                                          By:  /s/ Roel Campos
                                             -----------------------------
                                              Roel Campos
                                              Senior Vice President

                                          LBI HOLDINGS II, INC.

                                          By:  /s/ Lenard D. Liberman
                                             -----------------------------
                                                Lenard D. Liberman
                                                Executive Vice President

                                          LIBERMAN BROADCASTING OF HOUSTON, INC.

                                          By: /s/ Lenard D. Liberman
                                             -----------------------------
                                                Lenard D. Liberman
                                                Executive Vice President

                              and

                                       S-1

<PAGE>

                                          LIBERMAN BROADCASTING OF HOUSTON
                                          LICENSE CORP.

                                          By: /s/ Lenard D. Liberman
                                             -----------------------------
                                                Lenard D. Liberman
                                                Executive Vice President

                                       S-2<PAGE>

                                                                    Exhibit 10.4

                            ASSET PURCHASE AGREEMENT

                                      Among

                            GUAJILLO INVESTMENTS, LLC

                              LBI HOLDINGS II, INC.

                     LIBERMAN BROADCASTING OF HOUSTON, INC.

                                       AND

                 LIBERMAN BROADCASTING OF HOUSTON LICENSE CORP.

                 RELATING TO THE ACQUISITION OF KIOX-FM AND KXGJ

                               Dated June 21, 2002

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                        Page
<S>                                                                                     <C>
ARTICLE I    DEFINITIONS .............................................................     1

    1.1   Definitions ................................................................     1

    1.2   Knowledge ..................................................................     6

ARTICLE II   PURCHASE AND SALE OF ASSETS .............................................     6

    2.1   Assets to be Conveyed ......................................................     6

    2.2   Excluded Assets and Liabilities ............................................     7

ARTICLE III  PURCHASE PRICE; METHOD OF PAYMENT; ESCROW DEPOSIT .......................     8

    3.1   Purchase Price .............................................................     8

    3.2   Liabilities Assumed ........................................................     8

    3.3   Escrow Deposit .............................................................     8

    3.4   Buyer's Remedies ...........................................................     9

    3.5   Allocation .................................................................    10

    3.6   Prorations .................................................................    10

ARTICLE IV   REPRESENTATIONS AND WARRANTIES BY SELLER ................................    10

    4.1   Organization and Standing ..................................................    10

    4.2   Authorization ..............................................................    10

    4.3   FCC Licenses ...............................................................    11

    4.4   Purchased Assets ...........................................................    12

    4.5   Insurance ..................................................................    14

    4.6   Litigation .................................................................    14

    4.7   Contracts ..................................................................    14

    4.8   Insolvency .................................................................    14

    4.9   Reports ....................................................................    14

    4.10  No Defaults ................................................................    14

    4.11  Disclosures ................................................................    15

    4.12  Environmental Compliance ...................................................    15

    4.13  Intellectual Property ......................................................    15

    4.14  Brokers ....................................................................    16

    4.15  Prepaid Expenses ...........................................................    16
</TABLE>

                                      -i-

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                             Page
<S>                                                                                          <C>
ARTICLE V     REPRESENTATIONS AND WARRANTIES BY BUYER AND LBI HOLDINGS ....................    17

     5.1   Status .........................................................................    17

     5.2   No Defaults ....................................................................    17

     5.3   Authorization. .................................................................    17

     5.4   Brokers ........................................................................    17

     5.5   Qualification as a Broadcast Licensee ..........................................    18

     5.6   Litigation .....................................................................    18

     5.7   Approvals and Consents .........................................................    18

ARTICLE VI    COVENANTS OF SELLER .........................................................    18

     6.1   Affirmative Covenants of Seller ................................................    18

     6.2   Negative Covenants of Seller ...................................................    19

     6.3   Financial Information. .........................................................    20

ARTICLE VII   ADDITIONAL AGREEMENTS .......................................................    21

     7.1   Application for Commission Consent; Other Consents .............................    21

     7.2   Mutual Right to Terminate ......................................................    21

     7.3   Buyer's Right to Terminate .....................................................    22

     7.4   Seller's Right to Terminate ....................................................    22

     7.5   Risk of Loss ...................................................................    23

     7.6   Transfer Taxes and FCC Filings; Expenses; Bulk Sales. ..........................    24

ARTICLE VIII  CLOSING CONDITIONS ..........................................................    25

     8.1   Conditions Precedent to Buyer's Obligations ....................................    25

     8.2   Conditions Precedent to Seller's Obligations ...................................    27

ARTICLE IX    ITEMS TO BE DELIVERED AT THE CLOSING ........................................    27

     9.1   Seller's Performance At Closing ................................................    27

     9.2   Buyer's Performance at Closing .................................................    29

ARTICLE X     INDEMNIFICATION .............................................................    30

     10.1  Indemnification by Seller ......................................................    30

     10.2  Indemnification by LBI Holdings and Buyer ......................................    31

     10.3  Third-Party Claims .............................................................    32
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                              Page
<S>                                                                                           <C>
     10.4   Cap and Basket .................................................................    32

     10.5   Guarantee. .....................................................................    33

     10.6   Survival of Representations and Warranties .....................................    33

ARTICLE XI    MISCELLANEOUS PROVISIONS .....................................................    33

     11.1   Notices ........................................................................    33

     11.2   Benefit and Assignment .........................................................    34

     11.3   Other Documents ................................................................    35

     11.4   Appendices .....................................................................    35

     11.5   Construction ...................................................................    35

     11.6   Confidentiality ................................................................    35

     11.7   Arbitration ....................................................................    35

     11.8   Counterparts ...................................................................    37

     11.9   Headings .......................................................................    37

     11.10  Public Announcements ...........................................................    37

     11.11  Entire Agreement ...............................................................    37
</TABLE>

                                     -iii-

<PAGE>

SCHEDULE 4.7    Exceptions to Contracts

SCHEDULE I      Identification of Contracts to be Assumed

SCHEDULE II     List of all Permits and FCC Licenses

SCHEDULE III    List of Required Consents, Encumbrances and UCC-1 Filing
                Statements

SCHEDULE IV     Identification of Principal Items of Tangible Personal Property

SCHEDULE V      Allocation of the Purchase Price

SCHEDULE VI     Insurance Coverage Maintained by Seller on the Purchased Assets

SCHEDULE VII    Identification of Intellectual Property

SCHEDULE VIII   Schedule of Prepaid Expenses

SCHEDULE IX     Excluded Assets

EXHIBIT A       Form of Grant Deed

EXHIBIT B-1     Opinion of Seller's Counsel

EXHIBIT B-2     Opinion of Seller's Counsel (FCC)

EXHIBIT C       Opinion of LBI Entities' Counsel

EXHIBIT D       Form of Member Guarantee

EXHIBIT E       Form of Lessor Estoppels

<PAGE>

                            ASSET PURCHASE AGREEMENT

          THIS ASSET PURCHASE AGREEMENT is made and entered into this 21st day
of June, 2002, by and among Guajillo Investments, LLC, a Louisiana limited
liability company ("Guajillo" or "Seller"), on the one hand, and LBI Holdings
II, Inc., a California corporation ("LBI Holdings"), Liberman Broadcasting of
Houston, Inc., a California corporation ("LBI"), and Liberman Broadcasting of
Houston License Corp., a California corporation ("LBI Sub"), on the other. LBI
and LBI Sub are referred to collectively as "Buyer."

                              W I T N E S S E T H:

          WHEREAS, Seller owns certain assets used or held for use in connection
with the operation of radio stations KIOX-FM, 96.9 FM, El Campo, Texas and KXGJ,
101.7 FM, Bay City, Texas (each a "Station" and, collectively, the "Stations")
and Seller desires to sell and assign to Buyer the Stations and their related
assets, and the licenses, permits and other authorizations issued by the Federal
Communications Commission (the "FCC" or "Commission") for or in connection with
the operation of the Stations (the "FCC Licenses"); and

          WHEREAS, LBI Sub desires to acquire the FCC Licenses and LBI desires
to acquire from Seller all the other assets relating to the Stations and the
businesses related thereto; and

          WHEREAS, LBI Sub and LBI are wholly-owned direct or indirect
subsidiaries of LBI Holdings;

          WHEREAS, the FCC Licenses may not be assigned to LBI Sub without the
prior written consent of the Commission.

          NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, the Parties, intending to be legally bound, agree as follows:

                                   ARTICLE I
                                   DEFINITIONS

          1.1  Definitions. Unless otherwise stated in this Agreement, the
following terms shall have the following meanings:

          "Agreement" means this Asset Purchase Agreement, and references to
          "Articles," "Sections," "Schedules" and "Exhibits" are to the Articles
          and Sections of this Agreement and to the Schedules and Exhibits
          attached hereto.

          "Assignment Applications" means the applications which Seller and
          Buyer will join in and file with the Commission requesting its written
          consent to the assignment of the FCC Licenses from Seller to LBI Sub.

<PAGE>

          "Assumed Contracts" means only (i) those Contracts listed on Schedule
          I, (ii) any other Contract which Buyer specifically agrees to assume
          in connection with this Agreement in its sole discretion, and (iii)
          those Contracts entered into by Seller in the ordinary course of
          business between the date hereof and the Closing Date which LBI
          specifically agrees in writing to assume.

          "Bay City Leasehold" means that certain ground lease covering certain
          land located at Highway 35 East, Bay City, Texas, on which are located
          Seller's Bay City Studio Building and a 90' STL tower and 6' STL
          transmit dish antenna and related documents, all of which are listed
          on Schedule I.

          "Bay City Studio Building" means the studio building owned in fee by
          Seller and located upon the land covered by the Bay City Leasehold.

          "Buyer" has the meaning set forth in the first paragraph of this
          Agreement.

          "Closing Date" means 5:00 p.m. CST on the 10th business day following
          the Final Order Day or such other time as may be mutually agreed to in
          writing by the Parties.

          "Closing Place" means the offices of O'Melveny & Myers LLP, 400 South
          Hope Street, 15/th/ Floor, Los Angeles, California 90071, or such
          other place mutually agreed to in writing by the Parties.

          "Collegeport Leasehold" means, collectively, those certain ground
          lease and tower lease agreements covering the land and tower located
          in Collegeport, Matagorda County, Texas, on which is located Seller's
          transmitter building, a 12-bay FM antenna and a 6' STL antenna and
          related documents, all of which are listed on Schedule I.

          "Commission" has the meaning set forth in the recitals hereto.

          "Communications Act" means the Communications Act of 1934, as amended,
          or any successor statute or statutes thereto, and all rules,
          regulations, written policies, orders and decisions of the FCC
          thereunder, in each case as from time to time in effect.

          "Contracts" means any agreement, written or oral, between Seller and
          any third party related to either Station that creates a right or
          obligation for either side to make payment or provide goods or
          services or otherwise grants rights or creates obligations, including
          but not limited to advertising contracts and sales orders. As used
          herein, the Contracts shall include each of the Tower Subleases.

          "Damages" means any and all claims, demands, liabilities, obligations,
          actions suits, proceedings, losses, damages, costs, expenses,
          assessments, judgments, recoveries and deficiencies, including
          interest, penalties and reasonable attorneys' fees, of every kind and
          description, contingent or otherwise.

                                       2

<PAGE>

          "El Maton Leasehold" means that certain Towersite Lease Agreement in
          El Maton, Matagorda County, Texas, on which are located Seller's
          hop-site building, a 400' Esco tower and a 6' STL receive dish and
          transmit antenna and related documents, all of which are listed on
          Schedule I.

          "Encumbrance" means any option, pledge, security interest, lien,
          charge, mortgage, claim, debt, liability, obligation, encumbrance or
          restriction (whether on voting, sale, transfer or disposition),
          whether imposed by agreement, understanding, law, rule or regulation,
          and, with respect to Real Property assets, including the Transmitter
          Buildings and Towers, means any leases, licenses or other occupancy
          agreements relating thereto or covering any portion thereof or any
          liens or encumbrances existing with respect to Seller's interest under
          such documents.

          "Escrow Agent" means a financial institution or escrow company
          mutually acceptable to each Party.

          "Escrow Agreement" means the Corporate Custodial Agreement Relating to
          Earnest Money dated as of the date hereof executed by the Escrow
          Agent, LBI Holdings and Seller.

          "Escrow Deposit" has the meaning set forth in Section 3.3.

          "Excluded Assets" has the meaning set forth in Section 2.2.1.

          "FCC" has the meaning set forth in the recitals hereto.

          "FCC Licenses" has the meaning set forth in the recitals hereto.

          "Final Order Day" means the date on which the Initial Grants have both
          become final orders, which date shall be the forty-first day following
          issuance by the Commission of a public notice announcing the Initial
          Grants, or the date of the later public notice announcing an Initial
          Grant if both Initial Grants are not listed on the same public notice,
          unless either Initial Grant has during the preceding forty-day period
          become subject to any administrative or judicial stay, appeal, review,
          reconsideration or rehearing, in which case, the Final Order Day shall
          not be deemed to occur until such administrative or judicial stay,
          appeal, review, reconsideration or rehearing shall have been resolved
          by a final, unappealable order (by the Commission or by a court of
          competent jurisdiction if Buyer elects to seek judicial review of any
          final order by the Commission) which preserves intact the Initial
          Grants without any conditions materially adverse to Buyer.

          "Francitas Land" shall mean the 30 acres of land in Francitas, Jackson
          County, Texas on which are located Seller's 1,014' Andrews tower and
          6' STL receive dish antenna.

          "Grant Deed" shall mean a deed sufficient to convey to Buyer fee
          simple and marketable title, consistent with the terms and conditions
          of this Agreement, to

                                       3

<PAGE>

          each of the Francitas Land and the Bay City Studio Building each
          substantially the form of Exhibit "A".

          "Guajillo" has the meanings specified in the first paragraph of this
          Agreement.

          "Hazardous Substance" has the meaning set forth in Section 4.12.

          "HSRA" means the Hart-Scott-Rodino Antitrust Improvement Act of 1976,
          as amended, and the regulations thereunder, as in effect from time to
          time.

          "Indemnified Party" and "Indemnifying Party" have the meanings
          specified in Section 10.3.

          "Initial Grant" means, with respect to any Assignment Application, the
          Commission's written consent to the assignment of the FCC Licenses
          associated with the applicable Station to LBI Sub pursuant to such
          Assignment Application (including without limitation, by the Media
          Bureau by delegated authority), without any conditions materially
          adverse to any Party.

          "Initial Grant Day" means the day on which the Commission publishes
          public notice of an Initial Grant with respect to each Assignment
          Application (and if public notice of the Initial Grants are published
          on different days, the day on which the Commission publishes public
          notice of the later of the Initial Grants).

          "Intellectual Property" has the meaning set forth in Section 4.13.1.

          "LBI," "LBI Holdings" and "LBI Sub" have the meanings specified in the
          first paragraph of this Agreement.

          "Letter of Intent" shall mean that Letter Agreement dated February 26,
          2002 by and among Guajillo and Liberman Broadcasting, Inc., a
          California corporation and wholly owned subsidiary of LBI Holdings, as
          it may be amended from time to time.

          "Member Guarantee" shall have the meaning set forth in Section 8.1.9.

          "Party" means any of Guajillo, LBI Holdings, LBI or LBI Sub, as the
          context requires, and the term "Parties" mean all such entities;
          provided, however, that Seller, on the one hand, and LBI Holdings and
          Buyer, on the other, shall each be considered a single Party for
          purposes of Sections 7.3, 7.4, 10.3 and 10.4.

          "Permits" means the licenses, permits, approvals, authorizations,
          consents, and orders of any federal, state or local governmental
          authority held by Seller in connection with the operation of the
          Stations (including the FCC Licenses) and all pending requests and
          applications therefor, including without limitation those listed on
          Schedule II.

                                       4

<PAGE>

          "Permitted Encumbrances" means, with respect to the Real Property
          only, the Tower Subleases and those exceptions and encumbrances which
          are approved in writing by Buyer as exceptions or exclusions from
          coverage under the Title Policies as shown in the annotated title
          commitments delivered to Seller prior to closing. Notwithstanding the
          foregoing, the parties acknowledge that the title commitment for the
          Bay City Leasehold and the Bay City Studio Building were not available
          as of signing and that the only Permitted Encumbrances on such Real
          Property shall be consistent with those encumbrances similar to those
          accepted by the Buyer in the annotated title commitments previously
          delivered with respect to the other Real Property.

          "Proceeds" has the meaning set forth in Section 7.5.1.

          "Purchased Assets" means all the assets to be conveyed to Buyer by
          Seller pursuant to the terms of this Agreement.

          "Purchase Price" has the meaning set forth in Section 3.1.

          "Real Property" means the Francitas Land, the Bay City Studio Building
          and the Real Property Leaseholds.

          "Real Property Leaseholds" means the El Maton Leasehold, the Bay City
          Leasehold and the Collegeport Leasehold.

          "Required Consents" means the FCC consents to the assignment of the
          FCC Licenses and the other governmental consents, third-party
          consents, approvals or waivers in form and substance reasonably
          satisfactory to Buyer, necessary for Seller to sell, convey or
          otherwise sell or assign the Purchased Assets to Buyer, including
          without limitation those set forth on Schedule III.

          "Seller" has the meaning set forth in the first paragraph of this
          Agreement.

          "Station" and "Stations" have the meanings set forth in the recitals
          hereto.

          "Tangible Personal Property" has the meaning set forth in Section
          2.1.1.

          "Title Company" means Lawyers Title Insurance Company.

          "Title Policies" means each of (1) an ALTA extended coverage owner's
          policy with respect to the Francitas Land, (2) an ALTA extended
          coverage owner's policy with respect to the Bay City Studio Building,
          (3) an ALTA extended coverage leasehold owner's interest policy with
          respect to the El Maton Leasehold, (4) an ALTA extended coverage
          leasehold owner's interest policy with respect to the Bay City
          Leasehold, and (5) an ALTA extended coverage leasehold owner's
          interest policy with respect to the Collegeport Leasehold, each in a
          form and with coverages and amounts acceptable to Buyer and showing
          only Permitted Encumbrances.

                                       5

<PAGE>

          "Tower Subleases" shall mean the agreements pursuant to which Seller
          leases or licenses land or tower space to third parties, all of which
          are listed on Schedule I.

          "Towers" means radio broadcast towers located at each applicable
          Transmitter Site upon which is located the Station broadcast antenna.

          "Transmitter Buildings" means studio and transmitter buildings owned
          by Seller and located at the Transmitter Sites, including the Bay City
          Studio Building.

          "Transmitter Sites" means the transmitter and antenna sites owned or
          operated by Seller located on the Real Property.

          1.2    Knowledge. The terms "knowledge" or "know" as it relates to
Seller, shall mean the knowledge of Cheryl Stewart, Peter G. Scalfano, Joseph J.
Clements, Jr., and/or Tim Michaels after reasonable investigation, including due
inquiry of Seller's employees and the investigations referenced in Section 4.3.
With respect to Real Property, "Actual Knowledge" means the actual knowledge of
Cheryl Stewart, Peter G. Scalfano, Joseph E. Clements, Jr. and/or Tim Michaels,
without any duty of inquiry or investigation, and without any personal
liabilities therefor. With respect to LBI Holdings or Buyer, the terms
"knowledge" or "know" shall mean the knowledge of Jose Liberman, Lenard Liberman
and/or George Murray after reasonable investigation, including due inquiry of
LBI Holding's or Buyer's employees.

                                   ARTICLE II
                           PURCHASE AND SALE OF ASSETS

          2.1    Assets to be Conveyed. On the Closing Date at the Closing
     Place, subject to the terms and conditions of this Agreement, Seller will
     sell, assign, convey, transfer and deliver (i) to LBI Sub, the FCC Licenses
     and the Permits, and all applications therefor, together with any renewals,
     extensions, additions or modifications thereof, and (ii) to LBI, all
     (except the Excluded Assets) of Seller's right, title and interest in and
     to the other assets, properties and rights of every kind and nature,
     whether tangible or intangible, absolute or contingent, wherever located
     and used or usable in connection with the operation of the Stations (which,
     together with the FCC Licenses and the Permits and applications therefor,
     are collectively referred to as the "Purchased Assets"), such sale,
     assignment, conveyance, transfer and delivery to be made by instruments of
     conveyance in form reasonably satisfactory to Buyer and to be free and
     clear of all Encumbrances except Permitted Encumbrances. The Purchased
     Assets include the following (except for the Excluded Assets):

          2.1.1  All tangible personal property, furniture, fixtures,
          improvements and office equipment and other equipment used or useful
          in the operation of the Stations, including all furniture and
          inventory in the Transmitter Buildings, the transmitter facilities,
          all Towers, antennas, main and back-up transmitters and generators,
          STL's, data links for transmitter telemetry, wireless microphone and
          other equipment and tangible personal property located or otherwise
          intended for use at the Transmitter Sites, all the principal items of
          which are listed on Schedule IV, together with any replacements
          thereof or additions thereto made between the date hereof and the
          Closing Date, less any retirements made in the

                                       6

<PAGE>

          ordinary and usual course of either Station's business (collectively,
          the "Tangible Personal Property");

          2.1.2  The transmitter facilities located at the Transmitter Sites;

          2.1.3  Seller's interest, be it fee interest or leasehold interest, in
          the Real Property;

          2.1.4  All prepaid expenses made by Seller under the Assumed
          Contracts;

          2.1.5  The Assumed Contracts and all of Seller's rights thereunder
          relating to periods and events occurring on and after the Closing
          Date;

          2.1.6  Such files, records and logs pertaining to the operation of
          the Stations as Buyer may reasonably require, including each of the
          Station's public inspection files and other records relating to the
          FCC Licenses and other filings with the Commission, but excluding the
          corporate and accounting records of Seller to the extent not described
          above (notwithstanding this conveyance, Buyer agrees to allow Seller
          copies of (upon written request) and reasonable access to such records
          of the Stations as Seller may reasonably require from and after the
          Closing Date); and

          2.1.7  All Intellectual Property.

          2.2    Excluded Assets and Liabilities.

          2.2.1  Excluded Assets. It is understood and agreed that the Purchased
          Assets do not include any assets of Seller that are not used or useful
          in the operation of the Stations, the name Guajillo, the current post
          office box, all supplies on hand that are used in connection with
          station billings, certain personal items of Cheryl Stewart as listed
          on Schedule IX, cash (other than the amounts described in Section
          2.1.4), cash equivalents, deposits made by Seller under any Contracts
          (other than the amounts described in Section 2.1.4), and accounts and
          notes receivable, causes of action, tax refunds, insurance claims or
          proceeds (except as provided in Sections 6.1.6 and 7.5), in each case
          (for such accounts and notes receivable, causes of action, tax refunds
          and insurance claim and proceeds) accruing prior to the Closing (all
          the foregoing of which are referred to as the "Excluded Assets").

          2.2.2  Liabilities Not Assumed. Except for the liabilities and
          obligations specifically assumed pursuant to Section 3.2, Buyer and
          LBI Holdings will not assume and will not be or become liable for, any
          liabilities or obligations of Seller of any kind or nature whatsoever,
          whether absolute, contingent, accrued, known or unknown, related to
          the ownership of the Purchased Assets, the Excluded Assets, the
          operation of the Stations, Seller's employees or otherwise.

                                       7

<PAGE>

                                   ARTICLE III
                PURCHASE PRICE; METHOD OF PAYMENT; ESCROW DEPOSIT

          3.1    Purchase Price. Subject to Section 7.5.3, the purchase price to
be paid to Seller by Buyer for the Purchased Assets will be Three Million One
Hundred Fifty Thousand Dollars ($3,150,000) plus the aggregate amount of prepaid
expenses made by Seller for services to be provided to the Stations after the
Closing Date under the Assumed Contracts as set forth on Schedule VIII less any
accrued liabilities of Seller agreed to be assumed by Buyer and consented to by
Seller (the "Purchase Price").

          3.1.1  Payment of Purchase Price. Subject to the terms and conditions
          set forth in this Agreement, on the Closing Date, LBI Holdings or
          Buyer will pay to Seller an amount equal to the Purchase Price by wire
          transfer of immediately available funds in accordance with wire
          transfer instructions to be provided by Seller to Buyer not less than
          five business days prior to the Closing Date.

          3.1.2  Release of Escrow Deposit. Also on the Closing Date,
          concurrently with the wire transfer of the Purchase Price to Seller,
          Seller and LBI Holdings shall jointly execute and deliver to the
          Escrow Agent written instructions to terminate the Escrow Agreement
          and deliver the entire Escrow Deposit to LBI Holdings.

          3.1.3  Post-Closing Proration. Following the Closing Date, the Parties
          shall determine and make the prorations called for in Section 3.5.

          3.2    Liabilities Assumed. As of the Closing Date, Buyer will assume
and agree to pay, discharge and perform insofar as they relate to the time
period on and after the Closing Date, and arise out of events occurring on or
after the Closing Date, all the obligations and liabilities of Seller under the
Assumed Contracts.

          3.3    Escrow Deposit. Concurrently with the execution and delivery of
this Agreement, LBI Holdings has deposited One Hundred Fifty Seven Thousand Five
Hundred Dollars ($157,500) under the Escrow Agreement (together with any
interest accrued on such amount, the "Escrow Deposit"). The Escrow Deposit will
be held, maintained, administered and disbursed by the Escrow Agent in
accordance with the terms and provisions hereof and of the Escrow Agreement,
with the terms of the Escrow Agreement controlling in the event of any conflict.
The Escrow Deposit will be disbursed as follows:

          3.3.1  Delivery to Seller. If Buyer fails to consummate the purchase
          and sale contemplated by this Agreement under circumstances that would
          constitute a material breach of this Agreement and Seller is not then
          in breach of its representations, warranties or covenants hereunder in
          any material respect (it being understood and agreed by the Parties
          hereto that for purposes of this Section 3.3.1, that for purposes of
          determining such breach of Seller's representations, warranties and
          covenants, all knowledge qualifications in the representations and
          warranties of Seller contained in Section 4.3.3 shall be disregarded
          and such representation or warranty shall not be qualified in any
          respect by such knowledge qualification), then, the Escrow Deposit,
          including accrued interest, will be

                                       8

<PAGE>

          delivered to Seller, it being understood and agreed that payment to
          Seller of the full amount of the Escrow Deposit, including accrued
          interest, will constitute full payment for any and all damages
          suffered by Seller by reason of LBI Holdings' or Buyer's failure to
          consummate the purchase and sale contemplated by this Agreement.

               THE PARTIES ACKNOWLEDGE AND AGREE IN ADVANCE BY INITIALING THIS
          AGREEMENT IN THE SPACES PROVIDED [LBI HOLDINGS' INITIALS LDL, BUYER'S
          INITIALS LDL AND LDL, AND SELLER'S INITIALS CLS], THAT THE ACTUAL
          DAMAGES THAT SELLER WOULD SUFFER AS A RESULT OF BUYER'S FAILURE TO
          CONSUMMATE THE PURCHASE AND SALE OF THE ASSETS WOULD BE EXTREMELY
          DIFFICULT OR IMPOSSIBLE TO CALCULATE; THAT THE FULL AMOUNT OF THE
          ESCROW DEPOSIT IS A FAIR AND EQUITABLE AMOUNT TO REIMBURSE SELLER FOR
          ANY DAMAGES WHICH THE PARTIES ESTIMATE MAY BE SUSTAINED BY SELLER DUE
          TO BUYER'S FAILURE TO CONSUMMATE THE PURCHASE AND SALE OF THE ASSETS
          UNDER THE CIRCUMSTANCES STATED IN THIS SECTION 3.3.1; AND THAT THIS
          SECTION 3.3.1 SHALL CONSTITUTE A LIQUIDATED DAMAGES PROVISION, WHICH
          DAMAGES WILL BE SELLER'S SOLE REMEDY HEREUNDER IN THE EVENT OF LBI
          HOLDINGS' OR BUYER'S FAILURE TO CONSUMMATE THE PURCHASE AND SALE OF
          THE PURCHASED ASSETS UNDER THE CIRCUMSTANCES STATED IN THIS SECTION
          3.3.1.

          3.3.2  Delivery to LBI Holdings. The Escrow Deposit shall be delivered
          to LBI Holdings if (i) the transaction contemplated by this Agreement
          is consummated, or (ii) the purchase and sale contemplated by this
          Agreement is not consummated and Seller is not entitled to receive the
          Escrow Deposit in accordance with Section 3.3.1.

          3.4    Buyer's Remedies. If the purchase and sale contemplated by this
Agreement is not consummated because of the breach by Seller of its
representations, warranties or covenants in any material respects (it being
understood and agreed by the Parties hereto that for purposes of this Section
3.4, that for purposes of determining such breach of Seller's representations,
warranties and covenants, all knowledge qualifications in the representations
and warranties of Seller contained in Section 4.3.3 shall be disregarded and
such representation or warranty shall not be qualified in any respect by such
knowledge qualification), and Buyer is not in breach of its representations,
warranties or covenants hereunder in any material respects, Seller agrees that,
in addition to any other rights and remedies available at law or in equity, LBI
Holdings and Buyer shall have the following rights and remedies: (i) Buyer shall
have the right to specific performance of Seller's obligation to sell the
Purchased Assets upon the terms and conditions set forth in this Agreement and
incidental damages in an amount not to exceed $50,000 in the aggregate related
to such specific performance; (ii) LBI Holdings shall have the right to the
return of the Escrow Deposit (and associated interest); and (iii) LBI Holdings
and Buyer shall have the right to recover monetary damages for breach of this
Agreement in an amount equal to $157,500 and the right to be reimbursed for all
reasonable fees and expenses

                                       9

<PAGE>

(including reasonable legal expenses) incurred by LBI Holdings and Buyer in
connection with the transactions contemplated hereby; provided, that if Buyer
obtains full remedies under clause (i) pursuant to a non-appealable judgment
with which Seller complies, then Buyer shall not thereafter have additional
claims under clause (iii) and if LBI Holdings and Buyer obtain full remedies
under clause (iii) pursuant to a non-appealable judgment with which Seller
complies, then Buyer shall not thereafter have additional claims under clause
(i), it being understood and agreed that obtaining full remedies under clause
(iii) will constitute full payment for any and all damages suffered by Buyer by
reason of Seller's failure to consummate the purchase and sale contemplated by
this Agreement. The Parties agree that remedy at law is inadequate and that
damages are not adequate to compensate LBI Holdings and Buyer.

          3.5    Allocation. The Purchase Price allocation will be determined by
Buyer with the consent of Seller and set forth on Schedule V.

          3.6    Prorations. The operation of the Stations and all income,
expenses and liabilities attributable thereto through 11:59 p.m. on the day
immediately preceding the Closing Date will be for the account of Seller and
thereafter for the account of LBI, and all income and expenses, including such
items as power and utilities charges, rents and other deferred items will be
prorated between Seller and LBI in accordance with generally accepted accounting
principles consistently applied, the proration to be made and paid, insofar as
feasible, on the Closing Date, with a final settlement sixty days after the
Closing Date.

                                   ARTICLE IV
                    REPRESENTATIONS AND WARRANTIES BY SELLER

          Seller hereby represents and warrants to LBI Holdings and Buyer as
follows:

          4.1    Organization and Standing. Seller is a limited liability
company duly organized, validly existing and in good standing under the laws of
the state of its formation. Seller has the requisite power and authority to
enter into and complete the transactions contemplated by this Agreement. The
only members of Seller are Cheryl Stewart, Peter Scalfano and Joseph Clements,
Jr. ("Members"). As of the date hereof, Cheryl Stewart holds a 30% interest in
the Seller, Peter Scalfano holds a 65% interest in the Seller and Joseph
Clements, Jr. holds a 5% interest in the Seller. As of the Closing Date, Cheryl
Stewart will hold a 40% interest in the Seller, Peter Scalfano will hold a 45%
interest in the Seller and Joseph J. Clements, Jr. will hold a 15% interest in
the Seller.

          4.2    Authorization. All necessary limited liability company actions
and proceedings to duly approve the execution, delivery and performance of this
Agreement, the Escrow Agreement, and other agreements, documents and instruments
being executed by Seller in connection herewith or therewith and the
consummation of the transaction contemplated hereby or thereby have been duly
and validly taken by Seller, and each of this Agreement, the Escrow Agreement,
and other agreements, documents and instruments being executed by Seller in
connection herewith or therewith has been duly and validly authorized, executed
and delivered by Seller and constitutes the legal, valid and binding obligation
of Seller, enforceable against Seller in accordance with and subject to their
respective terms. As of the Closing, the Member Guarantee shall have been duly
executed and delivered by each Member and the Member

                                       10

<PAGE>

Guarantee shall constitute the legal, valid and binding obligation of each
Member, enforceable against each Member in accordance with and subject to its
terms.

          4.3    FCC Licenses.

          4.3.1  The FCC Licenses (all of which are listed on Schedule II,
          together with any pending applications for FCC Licenses) constitute
          all the licenses, permits and other authorizations required for and
          used in connection with the operation of the Stations as presently
          operated. No waiver of the Communications Act is necessary in order to
          permit Seller's operation of the Stations. Seller is the holder of all
          the FCC Licenses. Other than the Initial Grants of the Assignment
          Applications, no additional order or grant is required from the FCC in
          order to consummate the assignment of the FCC Licenses to LBI Sub.
          Schedule II correctly sets forth the respective expiration date of
          each FCC License. Each FCC License is validly issued and in full force
          and effect. Seller has taken all actions and performed all of its
          obligations that are necessary to maintain the FCC Licenses without
          adverse modification or impairment, and complete and correct copies of
          the FCC Licenses and any pending applications therefor have been
          delivered to Buyer. No event has occurred which (i) has resulted in,
          or after notice or lapse of time or both would result in, revocation,
          suspension, adverse modification, non-renewal or termination of or any
          order of forfeiture with respect to, any FCC License or (ii) to
          Seller's knowledge, materially and adversely affects or in the future
          would (so far as Seller can now reasonably foresee) materially and
          adversely affect any rights of Seller or any of its assignees or
          transferees thereunder. None of the FCC Licenses requires that any
          assignment thereof must be approved by any public or other
          governmental authority other than the FCC.

          4.3.2  Seller is not a party to, and has no knowledge of, any
          investigation, notice of apparent liability, violation, forfeiture,
          notice of violation, order to show cause or other order or complaint
          issued by or before any court or regulatory body, including, without
          limitation, the FCC, or of any other proceedings (other than
          proceedings relating to the radio industry generally) that would in
          any manner threaten or adversely affect, in either case, the validity
          or continued effectiveness of, or result in the adverse modification
          of, any of the FCC Licenses. In the event Seller learns of any such
          action, or the filing or issuance of any such order, notice or
          complaint, Seller promptly will notify Buyer of the same in writing
          and will take all commercially reasonable measures to contest in good
          faith or seek removal or rescission of such action, order, notice or
          complaint. To Seller's knowledge, each Station is now operating at its
          licensed power and antenna height, in accordance with the FCC
          Licenses, as confirmed by the investigation of Tim Michaels performed
          June 19, 2002. Seller has no reason to believe that the FCC Licenses
          will not be renewed in the ordinary course.

          4.3.3  To Seller's knowledge, the Stations are in compliance with the
          Communications Act, including, without limitation, rules governing the
          location of the Stations' respective main studios and rules governing
          the required contents of the Stations' respective public inspection
          files.

                                       11

<PAGE>

          4.3.4  To Seller's Actual Knowledge, none of the facilities used in
          connection with the radio broadcasting operations of Seller relating
          to the Stations (including the Transmitter Buildings, the Transmitter
          Sites and the Towers) violates in any material respect the provisions
          of any applicable building codes, fire regulations, building
          restrictions or other governmental ordinances, orders or regulations
          (including, without limitation, any applicable regulation of the
          Federal Aviation Administration) except where such violation would not
          impair, impede or adversely affect the continued, uninterrupted
          operation of the Stations and, each such facility is zoned so as to
          permit the commercial uses intended by the owner or occupier thereof.
          Schedule II identifies any outstanding variances or special use
          permits materially affecting any of Seller's facilities or the uses
          thereof and Seller is in compliance therewith. Seller has received no
          notice of any complaint being made against either Station relating to
          its Tower, Transmitter Site, Transmitter Building or Seller's
          operation of such Station (including, without limitation, any
          complaint relating to the signals broadcast or otherwise transmitted
          from any Tower, either by Seller or by any person subleasing a portion
          of any Tower) except where such complaint would not impair, impede or
          adversely affect the continued, uninterrupted operation of such
          Station. Each Tower has been appropriately registered with the
          Commission, as described in Schedule II.

          4.3.5  Seller is qualified to sell both Stations and to assign the FCC
          Licenses in accordance with the terms of this Agreement and in
          compliance with the Communications Act. Seller does not know of any
          party who has expressed any intention to oppose FCC approval of the
          assignment of the FCC Licenses to LBI Sub, nor does Seller know of any
          reason why FCC consent to such assignment might be denied or
          inordinately delayed.

          4.3.6  To Seller's knowledge, each report or certification filed by or
          on behalf of Seller with the FCC, including, without limitation, any
          filing pursuant to 47 C.F.R. (S) 73.3615 with respect to its ownership
          of either Station and any other filing relating to either Station, was
          timely filed, and was at the time of filing true, correct and complete
          in all respects. There have been no changes in the ownership of the
          Stations since the filing of the most recent such ownership reports or
          certifications and those ownership reports and certificates are true,
          correct and complete in all respects.

          4.3.7  To Seller's knowledge, operation of the Stations by the Seller
          does not cause or result in exposure of workers or the general public
          to levels of radio frequency radiation in excess of the applicable
          limits stated in 47 C.F.R. (S) 1.1310 as confirmed by the
          investigation of Tim Michaels performed June 4, 2002.

          4.4    Purchased Assets. All material items as of the date hereof used
in the operation of the Stations are listed and described in Schedule IV to this
Agreement. Schedule III sets forth each release and UCC Termination Statements
that are required in order to release any Encumbrances (other than Permitted
Encumbrances) on the Closing Date. Schedule III also sets forth all UCC
Financing Statements that have been filed against any Purchased Asset. There is
no pending or, to the knowledge of Seller, threatened action, event, transaction
or proceeding

                                       12

<PAGE>

that would reasonably be expected to interfere with the quiet enjoyment or
operation of the Purchased Assets (including the Real Property) by Seller or, on
and after the Closing Date, by Buyer. The Purchased Assets include all the
personal property and assets necessary to conduct the operation of the Stations
as now conducted.

          4.4.1  Real Property. On the Closing Date, Seller will have good and
          valid title to the Real Property, free and clear of all Encumbrances,
          other than (i) the Permitted Encumbrances, and (ii) the Encumbrances
          described in Schedule III, which Encumbrances will be released on the
          Closing Date concurrently with the Closing. Upon consummation of the
          transactions set forth in this Agreement, Buyer will have good and
          valid title to the Real Property, free and clear of all Encumbrances
          (other than liens granted to Buyer's lenders and the Permitted
          Encumbrances) but otherwise "AS IS" except for the representations,
          warranties and assurances specifically set forth in this Agreement.
          Upon issuance of the Title Policies, which Title Policies will show
          only the Permitted Encumbrances, Buyer agrees to look solely to the
          Title Policies with respect to assurances of title to the Real
          Property except to the extent there occurs a breach by Seller of the
          specific representations and warranties of Seller set forth in this
          Agreement. Seller has received no notice of noncompliance with any
          restriction or encumbrance encumbering the Real Property, except the
          Permitted Encumbrances. To Seller's Actual Knowledge, Seller has
          maintained and has operated the Real Property under and in accordance
          in all material respects with the terms of all applicable regulations.
          Seller has maintained and has operated each Transmitter Site, each
          Tower, each Transmitter Building and each Station under and in
          accordance in all material respects with the terms of all applicable
          regulations. To Seller's knowledge, there are no complaints regarding
          the Transmitter Sites, the Towers, the Transmitter Buildings, the
          antennas, the radio transmitters or the studio facilities. Except for
          the licensees or tenants under the Tower Subleases listed on Schedule
          I, there are no other persons which have any rights to use the Towers
          or Transmitter Sites or to occupy or use the Transmitter Buildings or
          the Real Property, whether by sublease, easement, license or other
          instrument. Buyer will have following Closing reasonable access to
          each of the Transmitter Sites, and a continuous means of ingress and
          egress thereto from public roads.

          4.4.2  Personal Property. On the Closing Date, Seller will have good
          and valid title to the Purchased Assets (other than Real Property),
          free and clear of all Encumbrances, other than the Encumbrances
          described in Schedule III, which Encumbrances will be released on the
          Closing Date concurrently with the Closing. Upon consummation of the
          transactions set forth in this Agreement, Buyer will have good and
          valid title to the Purchased Assets (other than Real Property), free
          and clear of all Encumbrances (other than liens granted to Buyer's
          lenders). The items of Tangible Personal Property are "AS IS, WHERE
          IS" except for the representations, warranties and assurances
          specifically set forth in this Agreement. To Seller's knowledge, the
          technical equipment, constituting a part of the Tangible Personal
          Property, has been maintained in accordance with the applicable
          Station's past practice and is operating and complies in all material

                                       13

<PAGE>

          respects with all applicable rules and regulations of the FCC and the
          terms of the FCC Licenses and Permits.

          4.5    Insurance. Seller now has in force insurance on the Purchased
Assets as set forth in Schedule VI and Seller will continue the present
insurance at the present limits in full force and effect up through the Closing
Date.

          4.6    Litigation. No litigation, action, suit, judgment, proceeding
or, to the knowledge of Seller after inquiry, investigation relating to either
Station is pending or outstanding before any forum, court, or governmental body,
department or agency of any kind to which Seller or such Station is a party and,
to the knowledge of Seller, no such litigation or proceeding is threatened, in
each case where a determination thereof would have an adverse effect on the
Purchased Assets.

          4.7    Contracts. Seller has delivered to Buyer true and complete
copies of all the Assumed Contracts. The Assumed Contracts will be enforceable
by Buyer after the consummation of the transaction contemplated hereby in
accordance with their respective terms. To Seller's knowledge, Seller has not
taken any action that would impair the enforceability of the Assumed Contracts,
or omitted to take any action, the omission of which would have such effect.
Except as set forth on Schedule 4.7, there are no material defaults under any of
the Assumed Contracts and the consummation of the transaction contemplated
hereby will not cause any defaults under any of the Assumed Contracts. The
information set forth in Schedule I with respect to each of the Tower Subleases
is true, correct and complete as of the date hereof and will continue to be
true, correct and complete as of closing. Schedule I sets forth all the relevant
documents to which Seller is a party with respect to the Real Property
Leaseholds, true, correct and complete copies of which have been delivered to
Buyer.

          4.8    Insolvency. No insolvency proceedings of any character
including, without limitation, bankruptcy, receivership, reorganization,
composition or arrangement with creditors, voluntary or involuntary, affecting
Seller or any of its assets or properties is pending or, to the knowledge of
Seller, threatened.

          4.9    Reports. All material returns, reports and statements currently
required to be filed by Seller with the Commission or with any other
governmental agency have been filed and each such return, report and statement
is true, correct and complete in all material respects. Seller has complied in
all material respects with the reporting requirements of the Commission and
governmental authorities having jurisdiction over the Stations and their
respective operations.

          4.10   No Defaults. Neither the execution, delivery and performance by
Seller of this Agreement nor the consummation by Seller of the transaction
contemplated hereby nor the execution, delivery and performance by each Member
of the Member Guarantee is an event that, of itself or with the giving of notice
or the passage of time or both, will (i) conflict with the provisions of the
Articles of Organization or Operating Agreement of Seller, (ii) (with respect to
performance on or after the Closing Date, subject to the Required Consents)
constitute a violation of, conflict with or result in any breach of or any
default under, result in any termination or modification of, or cause any
acceleration of any obligation under, any contract,

                                       14

<PAGE>

mortgage, indenture, agreement, lease, license or other instrument to which
Seller or any Member is a party or by which it is bound, or by which it may be
affected, or result in the creation of any Encumbrance on any of the Purchased
Assets, (iii) (with respect to performance on or after the Closing Date, subject
to the Required Consents) violate any judgment, decree, order, statute, rule or
regulation applicable to Seller or any Member or (iv) (with respect to
performance on or after the Closing Date, subject to the Required Consents)
violate or constitute a breach of any Assumed Contract. The execution, delivery
and performance of this Agreement by Seller and the execution, delivery and
performance of the Member Guarantee do not require the consent of any third
party other than the consent of the FCC to the Assignment Applications.

          4.11   Disclosures. No covenant, representation or warranty by Seller
and no written statement, certificate, appendix or Schedule furnished by Seller
pursuant hereto or in connection with the transaction contemplated hereby
contains any untrue statement of a material fact or omits to state any material
fact necessary to make the statements contained herein or therein not materially
misleading.

          4.12   Environmental Compliance. To Seller's Actual Knowledge, (i)
Seller has not, in connection with its business or assets, generated, used,
transported, treated, stored, released or disposed of, or has suffered or
permitted anyone else to generate, use, transport, treat, store, release or
dispose of any Hazardous Substance (as defined below) in material violation of
any applicable environmental law; (ii) there has not been any generation, use,
transportation, treatment, storage, release or disposal of any Hazardous
Substance in connection with the conduct of Seller's business or, to the
knowledge of Seller, in any properties within 100 yards of its business which
has created or might reasonably be expected to create any material liability
under any applicable environmental law or which would require reporting to or
notification of any governmental entity; (iii) no asbestos or polychlorinated
biphenyl or underground storage tank is contained in or located at any facility
used in connection with its business; and (iv) any Hazardous Substance handled
or dealt with in any way in connection with Seller's business has been and is
being handled or dealt with in all material respects in compliance with all
applicable environmental laws. As used herein, "Hazardous Substance" means
substances that are defined or listed in, or otherwise classified pursuant to,
any applicable laws as "hazardous substances," "hazardous materials," "hazardous
wastes" or "toxic substances," or any other formulation of any applicable
environmental law intended to define, list or classify substances by reason of
deleterious properties such as ignitibility, corrosivity, reactivity,
radioactivity, carcinogenicity, reproductive toxicity or "EP toxicity," and
petroleum and drilling fluids, produced waters and other wastes associated with
the exploration, development, or production of crude oil, natural gas or
geothermal energy.

          4.13   Intellectual Property.

          4.13.1 Schedule VII contains a true and complete list of all patents
          and trademarks, service marks, station names, alternative station
          names, slogans, trade names, logos, jingles, assumed names, fictional
          business names, copyrights, licenses, permits, authorizations and
          other similar intellectual property rights and interests applied for,
          issued to or presently owned or used by Seller (other than the name
          "Guajillo" and programming and its contents used but not owned by
          Seller) which are material to the operation of either Station,
          including the call letters

                                       15

<PAGE>

          "KIOX-FM" and "KXGJ" and any other call signs (together with the
          goodwill associated therewith, the "Intellectual Property"). Seller
          does not represent or warrant that it has good and marketable title to
          any of the Intellectual Property. None of such Intellectual Property
          has been duly registered in, filed in or issued by the United States
          Copyright Office or the United States Patent and Trademark Office, as
          appropriate, the appropriate offices in the various states of the
          United States or the appropriate offices of such other jurisdictions
          where such registration, filing or issuance is necessary to protect
          such Intellectual Property from infringement and for the conduct of
          the business of Seller.

          4.13.2 Except as set forth on Schedule VII, Seller has received no
          notice from any other person or entity pertaining to or challenging
          the right of Seller to use any of the Intellectual Property or any
          rights thereunder.

          4.13.3 Except as set forth on Schedule VII, Seller, to its knowledge,
          has not violated or infringed any patent, trademark, trade name,
          jingle, assumed name, fictional business name, copyright, license,
          permit or other similar intangible property right or interest held by
          others or any license or permit held by Seller.

          4.13.4 Except as set forth on Schedule VII, (i) Seller has not granted
          any license or other rights and, to Seller's knowledge, has no
          obligations to grant licenses or other rights to any of the
          Intellectual Property, and (ii) Seller has not made any claim of any
          violation or infringement by others of its rights to or in connection
          with any of the Intellectual Property, and to Seller's knowledge there
          is no basis for the making of any such claim.

          4.13.5 Except as set forth on Schedule VII, to Seller's knowledge,
          there are no proceedings, either pending or threatened, in the United
          States Copyright Office, the United States Patent and Trademark Office
          or any Federal, state or local court or before any other governmental
          agency or tribunal, relating to any pending application with respect
          to any Intellectual Property.

          4.14   Brokers. No agent, broker, investment or commercial banker,
person or firm acting on behalf of Seller or under the authority of Seller is or
will be entitled to any broker, finder or financial advisor fee or any other
commission or similar fee directly or indirectly in connection with the
transaction contemplated by this Agreement, other than John Saunders, whose fee
shall be paid by Seller.

          4.15   Prepaid Expenses. All prepaid expenses made by Seller for
services to be provided to the Stations after the Closing Date under the Assumed
Contracts are set forth on Schedule VIII.

                                       16

<PAGE>

                                   ARTICLE V
            REPRESENTATIONS AND WARRANTIES BY BUYER AND LBI HOLDINGS

          LBI Holdings and Buyer represent and warrant to Seller as follows:

          5.1    Status. Each of LBI Holdings, LBI and LBI Sub is a California
corporation, duly organized, validly existing and in good standing under the
laws of the State of California. LBI Holdings and Buyer each has the requisite
corporate power to enter into and complete the transaction contemplated by this
Agreement.

          5.2    No Defaults. Neither the execution, delivery and performance by
LBI Holdings or Buyer of this Agreement nor the consummation by Buyer of the
transaction contemplated hereby is an event that, of itself or with the giving
of notice or the passage of time or both, will (i) conflict with the provisions
of the Articles of Incorporation or Bylaws of LBI Holdings or Buyer, (ii) (with
respect to performance on or after the Closing Date, subject to item 2 of the
consents set forth in Schedule III, which the Buyer, Seller and LBI Holdings
acknowledge is not a condition to Closing) constitute a violation of, conflict
with or result in any breach of or any default under, result in any termination
or modification of, or cause any acceleration of any obligation under, any
contract, mortgage, indenture, agreement, lease or other instrument to which LBI
Holdings or Buyer is a party or by which it is bound, or by which it may be
affected, or result in the creation of any Encumbrance on any of its assets,
except for agreements, indentures and instruments related to the financing of
the transaction contemplated by this Agreement, (iii) (with respect to
performance on or after the Closing Date, subject to item 2 of the consents set
forth in Schedule III, which the Buyer, Seller and LBI Holdings acknowledge is
not a condition to Closing) violate any judgment, decree, order, statute, rule
or regulation applicable to LBI Holdings or Buyer, or (iv) (with respect to
performance on or after the Closing Date, subject to item 2 of the consents set
forth in Schedule III, which the Buyer, Seller and LBI Holdings acknowledge is
not a condition to Closing) result in the creation or imposition of any
Encumbrance on either Station or the Purchased Assets, except for liens, charges
or encumbrances relating to the financing of the transaction contemplated by
this Agreement.

          5.3    Authorization. All necessary corporate actions and proceedings
to duly approve the execution, delivery and performance of this Agreement, the
Escrow Agreement and other agreements, documents and instruments being executed
by LBI Holdings or Buyer in connection herewith or therewith and the
consummation of the transaction contemplated hereby or thereby have been duly
and validly taken by LBI Holdings and Buyer, and each of this Agreement, the
Escrow Agreement and other agreements, documents and instruments being executed
by LBI Holdings or Buyer in connection herewith or therewith has been duly and
validly authorized, executed and delivered by LBI Holdings and Buyer and
constitutes the legal, valid and binding obligation of LBI Holdings and Buyer,
enforceable against LBI Holdings and Buyer in accordance with and subject to
their respective terms.

          5.4    Brokers. No agent, broker, investment or commercial banker,
person or firm acting on behalf of LBI Holdings or Buyer or under the authority
of LBI Holdings or Buyer is or will be entitled to any broker, finder or
financial advisor fee or any other commission or

                                       17

<PAGE>

similar fee directly or indirectly in connection with the transaction
contemplated by this Agreement.

          5.5    Qualification as a Broadcast Licensee. Excluding all facts
arising from changes between the date hereof and the Closing Date to the radio
broadcasting industry generally and any modification during such period of the
FCC rules, regulations or policies affecting all members of the class of holders
of FCC licenses to which Buyer would belong as the holder of the FCC Licenses or
to which Buyer belongs as the holder of its existing FCC licenses, neither LBI
Holdings nor Buyer knows of any fact that would, under the Communications Act,
disqualify Buyer from being the assignee of the FCC Licenses or the owner,
operator and licensee of the Stations. Excluding all facts arising from changes
between the date hereof and the Closing Date to the radio broadcasting industry
generally and any modification during such period of the FCC rules, regulations
or policies affecting all members of the class of holders of FCC licenses to
which Buyer would belong as the holder of the FCC Licenses or to which Buyer
belongs as the holder of its existing FCC licenses, no waivers of the
Communications Act are necessary in order to permit assignment of the FCC
Licenses to Buyer.

          5.6    Litigation. There are no suits, legal proceedings or
investigations of any nature pending or, to the knowledge of LBI Holdings or
Buyer, threatened against or affecting it that would affect the ability of LBI
Holdings or Buyer to carry out the transaction contemplated by this Agreement.

          5.7    Approvals and Consents. To the knowledge after inquiry of LBI
Holdings and Buyer, the only approvals or consents of persons or entities not a
party to this Agreement that are legally or contractually required to be
obtained by LBI Holdings or Buyer in connection with the consummation of the
transaction contemplated by this Agreement are identified on Schedule III.

                                   ARTICLE VI
                               COVENANTS OF SELLER

          6.1    Affirmative Covenants of Seller. Between the date hereof and
the Closing Date, except as disclosed in this Agreement:

          6.1.1  Maintenance. Seller will continue to operate each Station in
          conformity with the FCC Licenses and the Communications Act.

          6.1.2  Preserve Relations. Seller will use its best efforts to
          preserve good relations with the lessor under any Assumed Contract,
          with owners of property adjacent to or in the area of the Transmitter
          Sites, the Transmitter Buildings, the Towers and others having
          business relations with either Station.

          6.1.3  Reasonable Access. After the Assignment Applications have been
          filed with the FCC and following reasonable advance written
          notification and subject to the provisions of Section 11.6, Seller
          will provide Buyer and representatives of Buyer with reasonable access
          during normal business hours to Seller's properties, titles,
          contracts, books, files, logs, records and affairs of each Station,
          and Seller

                                       18

<PAGE>

          will furnish such additional information concerning each Station as
          Buyer may from time to time reasonably request.

          6.1.4  Obtain Consents. Seller will use reasonable commercial efforts
          to procure the Required Consents.

          6.1.5  Books and Records. Seller will maintain the books and records
          of each Station consistent with past practices.

          6.1.6  Insurance. Seller will maintain in force the existing insurance
          policies identified on Schedule VI or reasonably equivalent policies.
          Subject to the provisions of Section 7.5, Seller will use the proceeds
          of any claims for loss payable under such insurance policies to
          repair, replace, or restore any of the Purchased Assets destroyed by
          fire and other casualties to their former condition as soon as
          possible after the loss.

          6.1.7  Notification. Seller will promptly upon learning of the same
          notify Buyer of any order to show cause, notice of violation, notice
          of apparent liability or of forfeiture or the filing or threat of
          filing of any complaint with the FCC or with either Station (to the
          extent that such complaints are required to be filed in that Station's
          public inspection file) or against Seller in connection with either
          Station, occurring between the date hereof and the Closing Date, and
          respond to any action, order, notice or complaints, and implement
          procedures to ensure that any valid complaints or violations will not
          recur. Without limiting the generality of the foregoing, Seller will
          also promptly upon learning of the same notify Buyer of any complaint
          being made against either Station relating to its Tower, Transmitter
          Site, Transmitter Building or Seller's operation of such Station
          (including, without limitation, any complaint related to the signals
          broadcast or otherwise transmitted from such Tower, either by Seller
          or by any person subleasing a portion of such Tower) and of any
          invoice unpaid by either Station or by Seller in connection with
          either Station that remains unpaid 60 days after the applicable due
          date of such invoice.

          6.1.8  Transition Assistance. Seller will use reasonable commercial
          efforts to assist Buyer in transitioning third party provided services
          such as utilities, phone service, etc.

          6.2    Negative Covenants of Seller. From the date hereof through
consummation of the transaction contemplated hereby on the Closing Date, except
as contemplated by this Agreement, Seller will not, without the prior written
consent of Buyer:

          6.2.1  Encumbrances. Create or assume any Encumbrance on any of the
          Purchased Assets (other than Permitted Encumbrances on the Real
          Property), whether now owned or hereafter acquired, unless discharged
          or terminated and fully released prior to the Closing Date;

                                       19

<PAGE>

          6.2.2  Transfers. Sell, assign, lease or otherwise transfer or dispose
          of any of the Purchased Assets, whether now owned or hereafter
          acquired, except for retirements in the normal and usual course of
          business;

          6.2.3  Call Letters. Change either Station's call letters or modify
          either Station's facilities in any material respect;

          6.2.4  Modification of Contracts. Amend or terminate any of the
          Assumed Contracts (or waive any substantial right thereunder);

          6.2.5  Change in Format or Business; Except as required by Section
          7.1.3, change either Station's format (including but not limited to
          genre of music, demographic or language) or otherwise materially
          change either Station's business model or advertising sales strategy;
          provided, however, that nothing in this Section 6.2.5 is intended to
          constitute an impermissible delegation of licensee's responsibilities
          under the Communications Act to maintain control of the operation of
          the Stations;

          6.2.6  Rights. Cancel or compromise any material claim or waive or
          release any material right of Seller relating to the Purchased Assets,
          except in the ordinary course of business consistent with past
          practice;

          6.2.7  FCC Licenses and Permits. Cause or permit, by any act or
          failure on its part, the FCC Licenses or Permits to expire or to be
          surrendered or modified, or take any action which would cause the FCC
          or any other governmental authority to institute proceedings for the
          suspension, revocation or adverse modification of any of the FCC
          Licenses or Permits, or fail to prosecute with due diligence any
          pending applications to any governmental authority in connection with
          the operation of either Station, or take any other action within
          Seller's control which would result in either Station being in
          non-compliance with the requirements of the Communications Act or any
          other applicable law material to the operation of either Station; or

          6.2.8  No Inconsistent Action. Take any other action inconsistent with
          its obligations under this Agreement or which could hinder or delay
          the consummation of the transaction contemplated by this Agreement.

          6.3    Financial Information. From the date hereof until 4 months
after the consummation of the transactions contemplated by this Agreement,
Seller agrees to cooperate with, and provide reasonable assistance to, Buyer in
connection with any filings or registration statements or reports under the
Securities Act of 1933, as amended, or the Securities and Exchange Act of 1934,
as amended, including, without limitation making available on a timely basis
such financial information of Seller as may reasonably be required in connection
with any such registration statement or report (including but not limited to
that information necessary for the Buyer or any such affiliate to prepare and
file the financial statements required by Rule 3.05 of Regulation S-X). Seller
shall not be required to pay any out-of-pocket expenses in connection with the
cooperation and assistance required under this Section 6.3, including without
limitation

                                       20

<PAGE>

for the cost of any audited financial statement of Seller, and no reference
shall be made to Seller or any of its financial information in any such
registration statement or report unless Seller and its independent auditor, if
any, has previously consented.

                                  ARTICLE VII
                              ADDITIONAL AGREEMENTS

          7.1    Application for Commission Consent; Other Consents.

          7.1.1  FCC Consent. Buyer and Seller agree to proceed as expeditiously
          as practical, and in no event later than ten business days after the
          execution hereof by Buyer and Seller, to file or cause to be filed the
          Assignment Applications requesting FCC consent to the transaction
          contemplated by this Agreement. The Parties agree that the Assignment
          Applications will be prosecuted in good faith and with due diligence,
          including filing and cooperating with all requests of the Commission.
          The Parties acknowledge that this Agreement will have to be filed with
          the FCC. The Parties further acknowledge that the Assignment
          Applications may have to be amended from time to time at Buyer's sole
          expense prior to the date they are granted to reflect any changes
          resulting from Buyer's financing and related arrangements.

          7.1.2  Other Governmental Consents. Promptly, but not later than ten
          business days following the filing of the Assignment Applications, the
          Parties will proceed to prepare and file with all other appropriate
          governmental authorities (if any), such other requests for approval or
          waiver as may be required from such governmental authorities to permit
          the transfer of the FCC Licenses, Permits and the Purchased Assets, or
          as otherwise required in connection with the transaction contemplated
          hereby and will jointly, diligently and expeditiously prosecute, and
          will cooperate fully with each other in the prosecution of, such
          requests for approval or waiver and all proceedings necessary to
          secure such approvals and waivers. The Parties hereby acknowledge that
          no filings will be required under the HSRA because both the Purchase
          Price and the fair market value of the Purchased Assets and Assumed
          Contracts are less than $50,000,000.

          7.1.3  Control of the Stations. This Agreement shall not be
          consummated until after the Initial Grant Day. Between the date of
          this Agreement and the Closing Date, Buyer, its employees or its
          agents, shall not directly or indirectly control, supervise or direct
          or attempt to control, supervise or direct the operation of the
          Stations, but such operation will be the sole responsibility and in
          the complete discretion of Seller

          7.2    Mutual Right to Terminate. Subject to the provisions of Section
7.5.2, if the closing of the purchase and sale transactions contemplated by this
Agreement has not occurred on or before the six month anniversary of the date
hereof, either Buyer or Seller, if such Party is not materially in default
hereunder in a manner which has delayed the occurrence of such closing, may
terminate this Agreement upon five days' written notice to the other Party;
provided, however, that Buyer at any time prior to the expiration of the sixth
month's

                                       21

<PAGE>

anniversary can extend such time period by three months by depositing an
additional amount with the Escrow Agent sufficient to increase the Escrow
Deposit to $315,000.

          7.3    Buyer's Right to Terminate. Buyer, at its option, upon written
notice to Seller, may terminate this Agreement, so long as Buyer is not then in
material default under or material breach of this Agreement, upon the happening
of any of the following events:

          7.3.1  The FCC Licenses or other Permits are modified or their terms
          substantially modified, resulting in a material adverse change in
          Buyer's ability to operate either Station in the manner in which they
          have been operated prior to the date hereof;

          7.3.2  Either Assignment Application is designated for a hearing
          before an administrative law judge;

          7.3.3  The FCC institutes revocation of license proceedings against
          either Station;

          7.3.4  Seller is in material breach of this Agreement ten (10)
          business days after notice of breach and has not commenced and
          continued to prosecute diligently a cure therefor or such breach is or
          becomes incurable (it being understood and agreed by the Parties
          hereto that for purposes of this Section 7.3, that for purposes of
          determining such breach of Seller's representations, warranties and
          covenants, all knowledge qualifications in the representations and
          warranties of Seller contained in Section 4.3.3 shall be disregarded
          and such representation or warranty shall not be qualified in any
          respect by such knowledge qualification); or

          7.3.5  Within ninety (90) days of the date of this Agreement, Buyer is
          not satisfied, in its sole discretion, with the condition of the Real
          Property or the Tangible Personal Property, subject to the terms of
          Section 8.1.6 below and further subject to Buyer's right to terminate
          if title defects not previously disclosed to Buyer are discovered
          following the expiration of such 90 day period.

          If the Agreement is terminated pursuant to Sections 7.3.1, 7.3.2,
7.3.3 or 7.3.5 and Seller is not in breach of its representations, warranties
and covenants in any material respects (it being understood and agreed by the
Parties hereto that for purposes of this Section 7.3, that for purposes of
determining such breach of Seller's representations, warranties and covenants,
all knowledge qualifications in the representations and warranties of Seller
contained in Section 4.3.3 shall be disregarded and such representation or
warranty shall not be qualified in any respect by such knowledge qualification),
the Escrow Deposit shall be returned to Buyer and Buyer shall have no further
rights and remedies against Seller.

          7.4    Seller's Right to Terminate. Seller, at its option, upon
written notice to Buyer, may terminate this Agreement, so long as Seller is not
then in material default under or material breach of this Agreement, upon the
happening of any of the following events:

          7.4.1  Either Assignment Application is designated for a hearing
          before an administrative law judge; or

                                       22

<PAGE>

          7.4.2  Buyer is in material breach of this Agreement ten (10) business
          days after notice of breach and has not commenced and continued to
          prosecute diligently a cure therefor or such breach is or becomes
          incurable.

          If the Agreement is terminated pursuant to Sections 7.4.1 and Seller
is not in breach of its representations, warranties and covenants in any
material respects (it being understood and agreed by the Parties hereto that for
purposes of this Section 7.4, that for purposes of determining such breach of
Seller's representations, warranties and covenants, all knowledge qualifications
in the representations and warranties of Seller contained in Section 4.3.3 shall
be disregarded and such representation or warranty shall not be qualified in any
respect by such knowledge qualification), the Escrow Deposit shall be returned
to Buyer and Buyer shall have no further rights and remedies against Seller.

          7.5    Risk of Loss.

          7.5.1  The risk of loss and damage, whether by force majeure or for
          any other reason, to the Purchased Assets or the operation of the
          Stations between the date of this Agreement and the Closing Date will
          be on Seller. To the extent permitted by security agreements for
          borrowed money, Seller shall take all reasonable steps to repair,
          replace and restore the Purchased Assets as soon as possible after any
          loss or damage, it being understood and agreed that all insurance
          proceeds with respect thereto ("Proceeds") will be applied to or
          reserved for such replacement, restoration or repair, but that Seller
          will have no obligation to repair, replace or restore in excess of the
          Proceeds (plus any applicable deductible payment), and that Buyer's
          sole remedies if Seller elects not to fully repair, replace or restore
          will be (i) to terminate this Agreement, in which case the Escrow
          Deposit will be delivered to LBI Holdings, or (ii) to close in
          accordance with Section 7.5.3 below.

          7.5.2  In the event of any damage or event that prevents broadcast
          transmissions of either Station in the normal and usual manner and
          substantially in accordance with the FCC Licenses (other than
          scheduled ordinary course maintenance), Seller will give prompt notice
          thereof to Buyer and Buyer, in addition to its other rights and
          remedies, will have the right to postpone the Closing Date until
          transmission in accordance with the FCC Licenses has been resumed. The
          postponed Closing Date will be any date within the effective period of
          the FCC's consent to assignment of the FCC Licenses to LBI Sub and no
          later than ten business days after Seller has given written notice to
          Buyer that transmission in accordance with the FCC Licenses has been
          resumed, which Buyer shall designate by not less than five business
          days' prior written notice to Seller. During the period of
          postponement, Seller shall use its best efforts to resume broadcast
          transmissions. In the event transmission in accordance with the FCC
          Licenses cannot be resumed within the effective period of the FCC's
          consent to assignment of the FCC Licenses to LBI Sub, the Parties will
          join in an application or applications requesting the FCC to extend
          the effective period of its consent for one or more periods not to
          exceed 120 days in the aggregate. If transmission in accordance with
          the FCC Licenses has not been resumed so that the Closing Date does
          not occur within such extended period, or any agreed extension
          thereof, Buyer will

                                       23

<PAGE>

          have the right, by giving written notice to Seller within five
          business days after the expiration of such 120-day period, or any
          agreed extension thereof, to terminate this Agreement forthwith
          without any further obligation, in which case the Escrow Deposit will
          be delivered to LBI Holdings.

          7.5.3  If any loss of or damage to the Purchased Assets (including but
          not limited to any Tower or any Transmitter Building) occurs prior to
          the Closing Date and full repair, replacement or restoration of all
          Purchased Assets has not been made on or before the Closing Date (as
          the Closing Date may be extended as provided in Section 7.5.2), or the
          cost thereof is greater than the Proceeds (plus any applicable
          deductible), then Buyer will be entitled, but not obligated, to accept
          the Purchased Assets in their then-current condition and will receive
          an abatement or reduction in the Purchase Price in an amount equal to
          the difference between the amount necessary to fully repair or replace
          the damaged Purchased Assets and the amount of the unused Proceeds, in
          which case Buyer will be entitled to all the unused Proceeds and
          payment of the deductible amount. If Buyer elects to accept damaged
          Purchased Assets at a reduced Purchase Price, the Parties agree to
          cooperate in determining the amount of the reduction to the Purchase
          Price in accordance with the provisions hereof.

          7.6    Transfer Taxes and FCC Filings; Expenses; Bulk Sales.

          7.6.1  Transfer Taxes; FCC Filings. All federal, state or local
          excise, sales or use taxes, or similar taxes and other costs imposed
          on or in connection with the sale, purchase or transfer of the
          Purchased Assets and assumption of the Assumed Contracts by Buyer
          pursuant hereto will be borne by Seller. Except as otherwise expressly
          provided in the last sentence of Section 7.1.1, all FCC filing fees
          will be shared equally by Buyer and Seller.

          7.6.2  Title, Survey, Escrow, Recordation, and other Real Property
          Costs. The costs of issuing the Title Policies and any survey that
          might be required in order to issue such Title Policies shall be borne
          by Seller as shall the costs of recording the Grant Deed. The costs of
          any real estate escrow shall be borne equally by Buyer and Seller and
          any other costs with respect to the transfer of the Real Property
          shall be borne by Buyer and Seller in accordance with the custom and
          practice of such county in which such Real Property is located.

          7.6.3  Expenses. Except as otherwise provided herein, Buyer and Seller
          shall each pay its own expenses incident to the negotiation,
          preparation and performance of this Agreement and consummation of the
          transaction contemplated hereby, including but not limited to the
          fees, expenses and disbursements of its accountants and counsel.

          7.6.4  Compliance With Bulk Sales Laws. Any loss, liability,
          obligation or cost suffered by Seller or Buyer as the result of the
          failure of Seller to comply with the provisions of any bulk sales laws
          applicable to the transfer of the Purchased Assets as contemplated by
          this Agreement will be borne by Seller.

                                       24

<PAGE>

          7.6.5  Software. Seller shall have the right to remove its software
          from the computers and retain all billing supplies then on hand after
          Seller has fully complied with the requirements on Section 2.1 of this
          Agreement.

          7.6.6

                                  ARTICLE VIII
                               CLOSING CONDITIONS

          8.1    Conditions Precedent to Buyer's Obligations. The obligation of
Buyer to consummate the transaction contemplated hereby is subject to the
fulfillment prior to and as of the consummation of the transaction contemplated
hereby on the Closing Date of each of the following conditions, each of which
may be waived (but only by an express written waiver) in the sole discretion of
Buyer:

          8.1.1  Commission Approval. The definition of Closing Date shall have
          been satisfied.

          8.1.2  Representations and Warranties. All representations and
          warranties of Seller contained in this Agreement shall be true and
          correct in all material respects at and as of the Closing Date as if
          made on the Closing Date except as specifically contemplated by this
          Agreement (it being understood and agreed by the Parties hereto that
          for purposes of this Section 8.1.2, that for purposes of determining
          such breach of Seller's representations and warranties, all knowledge
          qualifications in the representations and warranties of Seller
          contained in Section 4.3.3 shall be disregarded and such
          representation or warranty shall not be qualified in any respect by
          such knowledge qualification).

          8.1.3  Performance. Seller shall have performed and complied in all
          material respects with the covenants, agreements and conditions
          required by this Agreement to be performed or complied with by it
          prior to and on the Closing Date, including without limitation the
          provisions of Section 9.1. There shall not have been any material
          adverse change in either Station or the Purchased Assets, or any
          damage, destruction or loss materially and adversely affecting the
          Purchased Assets or the operation of either Station.

          8.1.4  FCC Licenses. Seller shall be the holder of the FCC Licenses,
          and there shall not have been any modification of any of the FCC
          Licenses or any modification of FCC rules, regulations or policies
          affecting the class of holders of FCC licenses to which Seller belongs
          as the holder of the FCC Licenses, that has or is reasonably likely to
          have a material adverse effect on either Station or, after the Closing
          Date, the conduct of its operations by Buyer in the manner in which
          they are currently being operated. No proceeding shall be pending, the
          effect of which would be to revoke, cancel, fail to renew, suspend,
          impair or modify adversely any of the FCC Licenses specifically or
          such class of holders generally.

          8.1.5  Consents. All Required Consents shall have been obtained and
          delivered to Buyer. Such Required Consents shall include, without
          limitation, executed

                                       25

<PAGE>

          consents and releases in form and substance reasonably satisfactory to
          Buyer from Westburg Media Capital, L.P., the Terminal Marketing Co.,
          Inc. and other creditors of Seller consenting to the transaction
          contemplated hereby and releasing their Encumbrances relating to the
          Purchased Assets (together with executed UCC termination statements,
          amendments to UCC financing statements and other documents and
          instruments implementing such release). In addition, the lessors under
          the leases for the Transmitter Sites shall have executed and delivered
          to Buyer estoppels and consents with respect to each lease (including
          confirmation that each lease is in full force and effect and no
          defaults exist thereunder and confirmation of the terms of each lease)
          in the forms attached as Exhibit E.

          8.1.6  Real Property. The Title Company shall be irrevocably committed
          to issue Title Policies, in form and content reasonably satisfactory
          to Buyer. Prior to the execution and delivery hereof (except as
          otherwise described in the definition of Permitted Encumbrances),
          Buyer has delivered to Seller a set of the title commitments issued by
          the Title Company with respect to the Title Policies to be issued
          hereunder, which commitments have been annotated to reflect the issues
          that Buyer will require to be cleared prior to Closing. Seller and
          Buyer will work together to clear any title problems identified by
          such markups as soon as possible. Within ninety (90) days following
          the date hereof Buyer will confirm in writing its satisfaction with
          the state of title to the properties, as reflected in revised
          commitments, as appropriate. Following the expiration of such 90 day
          period, Buyer will not object to any title issues unless new issues
          are identified by the Title Company, or are otherwise identified by
          Buyer (but were not shown on the commitments issued by the Title
          Company).

          8.1.7  Litigation and Insolvency. Except for matters affecting the
          radio broadcasting industry generally, no litigation, action, suit,
          judgment, proceeding or investigation shall be pending or outstanding
          before any forum, court, or governmental body, department or agency of
          any kind, relating to the operation of either Station or which has the
          stated purpose or the probable effect of enjoining or preventing the
          consummation of this Agreement, or the transaction contemplated hereby
          or to recover damages by reason thereof, or which questions the
          validity of any action taken or to be taken pursuant to or in
          connection with this Agreement. No insolvency proceedings of any
          character including, without limitation, receivership, reorganization,
          composition or arrangement with creditors, voluntary or involuntary,
          affecting Seller or any of its assets or properties, shall be pending,
          and Seller shall not have taken any action in contemplation of, or
          which would constitute the basis for, the institution of any such
          insolvency proceedings.

          8.1.8  Member Guarantee. Each person who is a member of Seller shall
          have executed the Member Guarantee in the form attached hereto as
          Exhibit D (the "Member Guarantee").

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<PAGE>

          8.1.9  Financial Information. To the extent requested prior to the
          Closing Date, Seller shall have provided all information required to
          be provided pursuant to Section 6.3 on or prior to the Closing Date.

          8.2    Conditions Precedent to Seller's Obligations. The obligation of
Seller to consummate the transaction contemplated hereby is subject to the
fulfillment prior to and as of the consummation of the transaction contemplated
hereby on the Closing Date of each of the following conditions, each of which
may be waived (but only by an express written waiver) in the sole discretion of
Seller:

          8.2.1  Commission Approval. The condition set forth in Section 8.1.1
          shall have been satisfied.

          8.2.2  Representations and Warranties. All representations and
          warranties of LBI Holdings and Buyer contained in this Agreement shall
          be true and correct in all material respects at and as of the Closing
          Date as if made on the Closing Date, except as specifically
          contemplated by this Agreement.

          8.2.3  Performance. LBI Holdings and Buyer shall each have performed
          and complied in all material respects with the covenants, agreements
          and conditions required by this Agreement to be performed or complied
          with by it prior to and at the Closing Date, including without
          limitation the provisions of Section 9.2 and payment of the Purchase
          Price in accordance with Article III of this Agreement.

          8.2.4  Litigation and Insolvency. Except for matters affecting the
          radio broadcasting industry generally, no litigation, action, suit,
          judgment, proceeding, complaint or investigation shall be pending or
          outstanding before any forum, court or governmental body, department
          or agency of any kind which has the stated purpose or the probable
          effect of enjoining or preventing the consummation of this Agreement
          or the transaction contemplated hereby or to recover damages by reason
          thereof, or which questions the validity of any action taken or to be
          taken pursuant to or in connection with this Agreement. No insolvency
          proceedings of any character including, without limitation,
          reorganization, receivership, composition or arrangement with
          creditors, voluntary or involuntary, affecting Buyer or any of its
          assets or properties shall be pending, and Buyer shall not have taken
          any action in contemplation of, or which would constitute the basis
          for, the institution of any such insolvency proceedings.

                                   ARTICLE IX
                      ITEMS TO BE DELIVERED AT THE CLOSING

          9.1    Seller's Performance At Closing. On the Closing Date by
facsimile or overnight courier to the Closing Place, Seller shall have executed
and delivered to Buyer all bills of sale, endorsements, assignments and other
instruments of conveyance and transfer reasonably satisfactory in form and
substance to Buyer and its counsel and consistent with the terms of this
Agreement, effecting the sale, transfer, assignment and conveyance of the
Purchased Assets to Buyer including, without limitation, the following:

                                       27

<PAGE>

          9.1.1  The Grant Deed for each of the Francitas Land and the Bay City
          Studio Building shall have been approved and accepted for recording by
          the Title Company and Title Company shall have issued the Title Policy
          for each of the Francitas Land and the Bay City Studio Building, each
          in the form referenced in Section 8.1.6 above (it being acknowledged
          that such Title Policies will be issued prior to the actual recording
          of the Grant Deeds for such Real Property and that Buyer shall have no
          responsibility with respect to the "gap" period between Closing and
          the date the Grant Deeds are actually recorded in the appropriate
          counties);

          9.1.2  Such other instruments or documents as Buyer may reasonably
          request, or as may reasonably be required by title insurers or escrow
          holders or required for the issuance of the Title Policies, in
          connection with the transfer and assignment of the Real Property,
          including with certifications of non-foreign status and such other
          documents and instruments customary and appropriate with the transfer
          and assignment of the Real Property in each of the counties in which
          such Real Property is located;

          9.1.3  One or more bills of sale conveying to LBI all of the Tangible
          Personal Property and Intellectual Property to be acquired by Buyer
          hereunder;

          9.1.4  An assignment assigning to LBI Sub the FCC Licenses;

          9.1.5  An assignment and assumption agreement assigning to LBI each of
          the Assumed Contracts together with the Required Consents and the
          original copies of the Assumed Contracts;

          9.1.6  The data, documents, copies, files, records and logs referred
          to in Section 2.1.6 and Seller shall have transferred data from
          Seller's computer systems to Buyer's computer systems to the extent
          provided in Section 2.1.6;

          9.1.7  Proof of payment of prepaid expenses made by Seller for
          services to be provided to the Stations after the Closing Date under
          the Assumed Contracts;

          9.1.8  Opinions of Seller's counsel dated as of the Closing Date
          substantially in the forms of Exhibit "B-1" and Exhibit "B-2" together
          with such changes, if any, as Buyer's lenders shall have requested and
          to which Seller's counsel has agreed;

          9.1.9  Copies of resolutions of Guajillo and all the members of
          Guajillo, certified by an officer of Guajillo, authorizing the
          execution, delivery and performance of this Agreement, the Escrow
          Agreement and the transaction contemplated hereby;

          9.1.10 A certificate, dated as of the Closing Date, executed by the
          Managing Member of Seller, to the effect that, (i) the representations
          and warranties of Seller contained in this Agreement are true and
          complete in all material respects on and as of the Closing Date as
          though made on and as of the Closing Date, except as specifically
          contemplated by this Agreement (it being understood and

                                       28

<PAGE>

          agreed by the Parties hereto that for purposes of this Section 9.1.10,
          that for purposes of determining such breach of Seller's
          representations and warranties, all knowledge qualifications in the
          representations and warranties of Seller contained in Section 4.3.3
          shall be disregarded and such representation or warranty shall not be
          qualified in any respect by such knowledge qualification); (ii) Seller
          has complied in all material respects with or performed in all
          material respects all terms, covenants, agreements and conditions
          required by this Agreement to be complied with or performed by it
          prior to and at the Closing Date; (iii) all Required Consents have
          been obtained by Seller and delivered to Buyer; (iv) except for
          matters affecting the radio broadcasting industry generally, no
          litigation, action, suit, judgment, proceeding or investigation is
          pending or outstanding or, to the knowledge of Seller, threatened,
          before any forum, court, or governmental body, department or agency of
          any kind, relating to the operation of any Station or which has the
          stated purpose or the probable effect of enjoining or preventing the
          consummation of this Agreement or the transaction contemplated hereby
          or to recover damages by reason thereof, or which questions the
          validity of any action taken or to be taken pursuant to or in
          connection with this Agreement; (v) to the knowledge of Seller, no
          insolvency proceedings of any character including, without limitation,
          receivership, reorganization, composition or arrangement with
          creditors, voluntary or involuntary, affecting Seller or any of its
          material assets or properties is pending, and Seller has not taken any
          action in contemplation of, or which would constitute the basis for,
          the institution of any such insolvency proceedings; and (vi) Seller
          has performed the requirements of this Section 9.1;

          9.1.11 Written instructions to terminate the Escrow Agreement and
          deliver the entire Escrow Deposit to LBI Holdings executed by Seller;

          9.1.12 The Member Guarantee shall have been delivered to Buyer
          executed by each of the parties thereto; and

          9.1.13 Such other instruments of transfer, documents or certificates
          reasonably requested by Buyer as may be necessary or appropriate to
          transfer to and vest in Buyer all of Seller's right, title and
          interest in and to the Purchased Assets or as reasonably may be
          requested by Buyer to evidence consummation of this Agreement and the
          transaction contemplated hereby.

          9.2    Buyer's Performance at Closing. On the Closing Date via
facsimile or overnight mail to such place as may be designated by Seller in
writing at least five days in advance of the Closing, Buyer will execute and
deliver or cause to be delivered to Seller:

          9.2.1  The monies payable as set forth in Section 3.1.1 by wire
          transfer of federal funds;

          9.2.2  An opinion of Buyer's counsel dated as of the Closing Date
          substantially in the form of Exhibit "C";

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<PAGE>

          9.2.3  Copies of resolutions of the Boards of Directors of LBI
          Holdings, LBI and LBI Sub, in each case certified by its Secretary,
          authorizing the execution, delivery and performance of this Agreement
          and the transaction contemplated hereby;

          9.2.4  A certificate, dated as of the Closing Date, executed by the
          Executive Vice President of LBI Holdings and Buyer, to the effect that
          (i) the representations and warranties of LBI Holdings and Buyer
          contained in this Agreement are true and complete in all material
          respects on and as of the Closing Date as though made on and as of the
          Closing Date, except as specifically contemplated by this Agreement;
          (ii) LBI Holdings and Buyer have each complied in all material
          respects with or performed in all material respects all terms,
          covenants, agreements and conditions required by this Agreement to be
          complied with or performed by it prior to and at the Closing Date;
          (iii) to LBI Holdings' and Buyer's knowledge, except for matters
          affecting the radio broadcasting industry generally, no litigation,
          action, suit, judgment, proceeding or investigation is pending or
          outstanding or threatened, before any forum, court or governmental
          body, department or agency of any kind which has the stated purpose or
          the probable affect of enjoining or preventing the consummation of
          this Agreement or the transaction contemplated hereby or to recover
          damages by reason thereof, or which questions the validity of any
          action taken or to be taken pursuant to or in connection with this
          Agreement; (iv) to the knowledge of LBI Holdings and Buyer, no
          insolvency proceedings of any character including, without limitation,
          receivership, reorganization, composition or arrangement with
          creditors, voluntary or involuntary, affecting LBI Holdings or Buyer
          or any of their respective assets or properties is pending, and
          neither LBI Holdings nor Buyer has taken any action in contemplation
          of, or which would constitute the basis for, the institution of any
          such insolvency proceedings; and (v) LBI Holdings and Buyer have each
          performed the requirements of this Section 9.2;

          9.2.5  A writing evidencing the assumption by Buyer of each of the
          Assumed Contracts consistent with the provisions of this Agreement;
          and

          9.2.6  Such other instruments, documents and certificates as
          reasonably may be requested by Seller to consummate this Agreement and
          the transaction contemplated hereby.

                                   ARTICLE X
                                 INDEMNIFICATION

          10.1   Indemnification by Seller. It is understood and agreed that LBI
Holdings and Buyer do not assume and will not be obligated to pay any liability
of Seller under the terms of this Agreement or otherwise and will not be
obligated to perform any obligations of Seller of any kind or manner, except in
connection with the Assumed Contracts and with respect thereto only to the
extent such obligations arise subsequent to the consummation of the transaction
contemplated hereby on the Closing Date. Seller hereby agrees to indemnify,
defend and hold harmless LBI Holdings and Buyer, their successors and assigns,
for a period of twelve (12)

                                       30

<PAGE>

months following the consummation of the purchase and sale transaction
contemplated hereby on the Closing Date, from and against:

          10.1.1 Any and all Damages, occasioned by, arising out of or resulting
          from the operation of either Station prior to the Closing Date,
          including, but not limited to, any and all claims, liabilities and
          obligations arising or required to be performed prior to the Closing
          Date under any of the Assumed Contracts or otherwise with respect to
          Seller's ownership and operation of either Station prior to the
          Closing Date; and

          10.1.2 Any and all Damages occasioned by, arising out of or resulting
          from any material misrepresentation, material breach of warranty or
          covenant, or material default or material nonfulfillment of any
          agreement on the part of Seller under this Agreement, or from any
          material misrepresentation in or material breach of any certificate,
          agreement, appendix, Schedule, or other instrument furnished to LBI
          Holdings or Buyer pursuant to this Agreement or in connection with the
          transaction contemplated hereby (it being understood and agreed by the
          Parties hereto that for purposes of this Section 10.1.2, that for
          purposes of determining such breach of Seller's representations,
          warranties and covenants, all knowledge qualifications in the
          representations and warranties of Seller contained in Section 4.3.3
          shall be disregarded and such representation or warranty shall not be
          qualified in any respect by such knowledge qualification); provided
          further, however, that if LBI Holdings or Buyer or any of their
          respective agents discovers facts from a source other than the Seller
          or any of its agents or representatives prior to the Closing Date and
          such facts constitute a breach of any of the representations and
          warranties hereof on the part of Seller and if, in spite of the
          existence of such breach, Buyer elects to consummate the transactions
          contemplated hereby without an additional written agreement by Seller
          to indemnify Buyer with respect to such breach, then LBI Holdings and
          Buyer shall not have a right to indemnification with respect to such
          breach of such representation and warranty to the extent that the
          severity of such breach is known to LBI Holdings or Buyer prior to
          Closing

          10.2   Indemnification by LBI Holdings and Buyer. LBI Holdings and
Buyer agree to indemnify, defend and hold harmless Seller, its successors and
assigns, for a period of twelve (12) months following the consummation of the
purchase and sale transaction contemplated hereby on the Closing Date from and
against:

          10.2.1 Any and all Damages occasioned by, arising out of or resulting
          from the operation of either Station on or subsequent to the Closing
          Date, including, but not limited to, any and all claims, liabilities
          and obligations arising or required to be performed on or subsequent
          to the Closing Date under any of the Assumed Contracts or otherwise
          with respect to Buyer's ownership and operation of either Station from
          and after the Closing Date; and

          10.2.2 Any and all Damages occasioned by, arising out of or resulting
          from any material misrepresentation, material breach of warranty or
          covenant, or material

                                       31

<PAGE>

          default or material nonfulfillment, of any agreement on the part of
          LBI Holdings or Buyer under this Agreement, or from any material
          misrepresentation in or material breach of any certificate, agreement,
          appendix, Schedule or other instrument furnished to Seller pursuant to
          this Agreement or in connection with the transaction contemplated
          hereby.

          10.3   Third-Party Claims. In the event of third party claims, each
Party ("Indemnified Party") shall give written notice to the other Party
("Indemnifying Party") as soon as practicable and in no event later than ten
business days after the Indemnified Party has knowledge, or the discovery, of
any facts which in its opinion entitle or may entitle it to indemnification
under this Section 10.3. Seller, on the one hand, and LBI Holdings and Buyer, on
the other, shall be considered a single Party for purposes of this Section 10.3
or Section 10.4. However, failure to give such notice will not preclude the
Indemnified Party from seeking indemnification hereunder, unless, and to the
extent that, such failure adversely affects to a material degree the
Indemnifying Party's ability to defend against such a claim. The Indemnifying
Party will promptly defend such a claim by counsel approved by the Indemnified
Party, which approval shall not be unreasonably withheld, and the Indemnified
Party may appear at any proceeding, at its own cost, by counsel of its own
choosing and will otherwise reasonably cooperate in the defense of such claim,
provided that the Indemnifying Party shall promptly reimburse the Indemnified
Party all reasonable costs, expenses and attorneys' fees incurred in the course
of cooperating in the defense of such claim. The Indemnifying Party shall be
responsible for all costs and expenses of any settlement. If the Indemnifying
Party within ten business days after notice of a claim fails to defend the
Indemnified Party, the Indemnified Party will be entitled to undertake the
defense, compromise or settlement of such claim at the expense of and for the
account and risk of the Indemnifying Party. Anything in this Section to the
contrary notwithstanding:

          10.3.1 If LBI Holdings or Buyer is the Indemnified Party and in the
          reasonable judgment of LBI Holdings or Buyer there is a reasonable
          probability that a claim may materially and adversely affect the
          Indemnified Party or its continued operation of either Station, the
          Indemnified Party will have the right, at its own cost and expense, to
          undertake the prosecution, compromise and settlement of such claim,
          and the Indemnifying Party will cooperate with the Indemnified Party;

          10.3.2 If the facts giving rise to indemnification hereunder involve a
          possible claim by the Indemnified Party against a third party, the
          Indemnified Party will have the right, at its own cost and expense, to
          undertake the prosecution, compromise and settlement of such claim;
          and

          10.3.3 The Indemnifying Party will not, without the consent of the
          Indemnified Party (which consent shall not unreasonably be withheld,
          conditioned or delayed), enter into or settle or compromise any claim
          or consent to any entry of judgment which (i) in the reasonable
          judgment of LBI Holdings or Buyer may materially and adversely affect
          LBI Holdings or Buyer or their continued operation of either Station,
          and (ii) does not include as an unconditional term thereof the giving
          by the claimant or the plaintiff to the Indemnified Party of a full
          and complete release from all liability in respect to such claim.

                                       32

<PAGE>

          10.4 Cap and Basket. Neither Party will be entitled to indemnification
under this Article X until Damages to such Party exceed $10,000 in the
aggregate. Once Damages to either Party exceed $10,000 in the aggregate, such
Party will be entitled to recover the entire amount of the Damages to the
maximum extent permitted by this Agreement. The Parties agree that any
materiality qualification set forth in this Agreement shall not be taken into
account in determining the magnitude of Damages occasioned by any breach for
purposes of calculating whether such $10,000 threshold has been reached. The
Parties agree that with respect to all claims made pursuant to Article X hereof
during the period beginning on the date of consummation of the purchase and sale
transaction contemplated by this Agreement on the Closing Date and ending on the
twelve month anniversary of such date, the maximum aggregate amount for which
either Buyer and LBI Holdings on the one hand or Seller on the other hand will
be responsible for pursuant to this Agreement is $800,000 in the aggregate.

          10.5 Guarantee. LBI Holdings and Buyer shall be entitled to receive
any amounts owing by Seller to LBI Holdings or Buyer pursuant to this Article X
not only from Seller but also from the members of Seller as guarantors under the
Member Guarantee. Under no circumstances will LBI Holdings and Buyer be entitled
to receive from any guarantor more money under the Member Guarantee than that
guarantor received from the sale of the Stations, which amounts are hereby
agreed to be $360,000, $320,000 and $120,000, for Peter Scalfano, Cheryl Stewart
and Joseph Clements, Jr., respectively.

          10.6 Survival of Representations and Warranties. The representations
and warranties contained in this Agreement or in any Schedule or Exhibit, or in
any certificate or other instrument delivered pursuant to this Agreement, will
survive the consummation of the purchase and sale transaction contemplated by
this Agreement on the Closing Date for a period of twelve (12) months; provided
that if a claim or notice is given under this Article X or otherwise with
respect to any such representation and warranty prior to such expiration date,
such claim shall continue (and such representation and warranty shall survive)
indefinitely until such claim is finally resolved.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

          11.1 Notices. All notices, demands and requests, required or permitted
to be given under the provisions of this Agreement shall be in writing and will
be deemed duly given and effective upon receipt or, if received on a day other
than a business day, the next business day following the day of receipt, if sent
by (i) certified mail, (ii) delivery by messenger or in person or (iii) by
facsimile at the facsimile numbers below and telephone notification is provided
by the sending Party to the receiving Party at or following the time the
facsimile is sent (it being understood that a voice mail left on answering
machines shall be deemed to satisfy the requirement for such telephone
confirmation):

          If to Seller:

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<PAGE>

               Ms. Cheryl Stewart
               Guajillo Investments, LLC
               Highway 35 East
               Big City, Texas 77414
                     Phone: (979) 245-4642
                     Fax: (979) 245-6463

          Copy (which shall not, by itself, constitute notice) to:

               Charles L. Spencer, Esq.
               Hebert, Spencer, Cusimano & Fry
               701 Laurel Street
               Baton Rouge, LA 70802
                     Phone: (225) 344-2601
                     Fax: (225) 387-1714

          If to LBI Holdings or Buyer:

               Mr. Lenard D. Liberman
               Executive Vice President
               Liberman Broadcasting Inc.
               1845 Empire Avenue
               Burbank, California 91504
                     Phone: BOTH (818) 563-5722 and
                            (281) 493-2900
                     Fax: BOTH (818) 558-4244 and
                          (281)759-3963

          Copy (which shall not, by itself, constitute notice) to:

               Joseph K. Kim, Esq.
               O'Melveny & Myers LLP
               400 South Hope Street, 15/th/ Floor
               Los Angeles, California 90071
                     Phone: (213) 430-6000
                     Fax: (213) 430-6407

or any other such facsimile numbers and addresses as any Party may from time to
time supply in writing to the other Parties.

          11.2 Benefit and Assignment. This Agreement will be binding upon and
inure to the benefit of the Parties, and their respective successors and
assigns. This Agreement will not be assignable by a Party without the prior
written consent of all of LBI Holdings, Buyer and Seller; provided, however,
that LBI Holdings and Buyer may assign their rights and obligations hereunder
without Seller's consent to any party that is majority owned, directly or
indirectly, by LBI Holdings and LBI Holdings and Buyer may assign their rights
hereunder, without Seller's consent, to any of their lenders (provided that such
assignment to such lenders does not violate the Communications Act and does not
delay the Closing Date). Any assignment contrary to this

                                       34

<PAGE>

Section 11.2 is void. LBI Holdings and Buyer shall use reasonable efforts to
give prior written notice of such assignment to Seller and such information as
Seller may reasonably request.

          11.3   Other Documents. The Parties will execute such other documents
as may reasonably be necessary and desirable to the implementation and
consummation of this Agreement.

          11.4   Appendices. All Schedules and Exhibits are deemed to be part of
this Agreement and incorporated herein, where applicable, as if fully set forth
herein. Whenever, by the terms of this Agreement or any subsequent agreement of
the Parties, any additions or deletions are made to the Purchased Assets shown
on the Schedules, the Schedules affected shall be appropriately modified to
reflect those changes.

          11.5   Construction. This Agreement will be governed, construed and
enforced in accordance with the laws of the State of Texas.

          11.6   Confidentiality. The Parties will keep confidential any
non-public information of the other Parties, subject to required disclosure of
such terms in connection with the filing of the Assignment Applications,
obtaining necessary approvals of third parties to the consummation of the
transaction, disclosures to advisors and financing sources of each Party so long
as they are directed by Buyer and LBI Holdings to treat the information
confidentially and disclosures required in connection with FCC approvals or
financing transactions.

          11.7   Arbitration. Any dispute, controversy or other matters as to
which the Parties disagree arising out of, relating to or in connection with the
provisions of this Agreement or the interpretation, breach or alleged breach
hereof shall be settled and decided by arbitration conducted by the Judicial
Arbitration and Mediation Service ("JAMS"), subject to the following:

          11.7.1 Any arbitration as set forth above shall be held and conducted
          in Houston, Texas before one arbitrator who shall be selected by
          mutual agreement of the parties. If agreement is not reached on the
          selection of the arbitrator within 30 days after commencement of an
          arbitration by (i) submission of a matter to the JAMS in accordance
          with its Commercial Arbitration Rules and (ii) notice to the other
          party of the initiating party's intention to arbitrate, then such
          arbitrator shall be appointed by the presiding judge of the
          appropriate United States Court for the Northern District of Texas.

          11.7.2 The arbitrator appointed must be a former or retired judge, or
          an attorney with at least 15 years experience in the broadcast radio
          industry.

          11.7.3 All proceedings involving the parties shall be reported by a
          certified shorthand court reporter and written transcripts of the
          proceedings shall be prepared and made available to the parties.

          11.7.4 The prevailing party shall be awarded reasonable attorneys'
          fees, expert and non-expert witness costs and expenses, and other
          costs and expenses incurred in connection with the arbitration unless
          the arbitrator, for good cause, determines otherwise.

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<PAGE>

          11.7.5  The dispute shall be heard in accordance with the rules and
          procedures of JAMS and the arbitrator's decision and award shall be
          final and binding.

          11.7.6  Costs and fees of the arbitrator (including the cost of the
          record of transcripts of the arbitration) shall be borne by the
          non-prevailing party, unless the arbitrator for good cause determines
          otherwise. Costs and fees payable in advance shall be advanced equally
          by the parties, subject to ultimate payment by the non-prevailing
          party in accordance with the preceding sentence.

          11.7.7  Any Party may initiate an arbitration proceeding under this
          Section 11.6 by written notice to the other Party of his or its
          intention to arbitrate, specifying the dispute or controversy to be
          arbitrated, the amount involved and the remedy sought, and by filing
          with the Dallas, Texas office of the JAMS a copy of said notice
          together with a copy of this Agreement and the fee specified in the
          JAMS fee schedule. In no event shall a demand for arbitration be made
          after the date when institution of legal or equitable proceedings
          based on the claim, dispute or other matter in question would be
          barred by the applicable statute of limitations.

          11.7.8  This agreement to arbitrate shall be specifically enforceable
          under applicable law in any court of competent jurisdiction. The award
          rendered by the arbitrator shall be final and judgment may be entered
          in accordance with applicable law and in any court having jurisdiction
          thereof.

          11.7.9  Notwithstanding anything contained in this Agreement elsewhere
          to the contrary, and unless modified by the arbitrator upon a showing
          of good cause, the arbitration shall proceed upon the following
          schedule: (i) within 30 days from the service of the notice of the
          request to arbitrate, the parties shall select the arbitrator; (ii)
          within 30 days after selection of the arbitrator, the parties shall
          conduct a pre-arbitration conference at which a schedule of
          pre-arbitration discovery shall be set, all pre-arbitration motions
          scheduled and any other necessary pre-arbitration matters decided;
          (iii) all discovery shall be completed within four months following
          the pre-arbitration conference; (iv) all pre-arbitration motions shall
          be filed and briefed so that they may be heard no later than one month
          following the discovery cut-off; (v) the arbitration shall be
          scheduled to commence no later than 30 days after the decision on all
          pre-arbitration motions but in any event no later than six months
          following the service of the notice of arbitration; and (vi) the
          arbitrator shall render his written decision within 30 days following
          the submission of the matter.

          11.7.10 Any monetary award of the arbitrator may include interest at
          the highest prime rate, as published in the Wall Street Journal, plus
          two percent, but in no event shall the total interest exceed the
          maximum amount allowed by Texas law which interest shall accrue from
          the date the claim, dispute or other matter in question was rightfully
          due and payable under this agreement until the date the award is paid
          to the prevailing party.

                                       36

<PAGE>

          11.7.11 No provision of this Section 11.7 shall limit the right of any
          Party to this Agreement to exercise self-help remedies or to obtain
          provisional or ancillary remedies from a court of competent
          jurisdiction before, after, or during the pendency of any arbitration
          or other proceeding. The exercise of such remedy does not waive the
          right of any party to resort to arbitration.

          11.8    Counterparts. This Agreement may be signed in any number of
counterparts with the same effect as if the signature on each such counterpart
were upon the same instrument.

          11.9    Headings. The headings of the Sections of this Agreement are
inserted as a matter of convenience and for reference purposes only and in no
respect define, limit or describe the scope of this Agreement or the intent of
any Section.

          11.10   Public Announcements. LBI Holdings and Buyer, on the one hand,
and Seller on the other, will consult with, and obtain the approval of (such
approval not to be unreasonably withheld or delayed) each other before issuing,
and provide each other the opportunity to review, comment upon and concur with,
any press release or other public statement with respect to the transactions
contemplated by this Agreement, and shall not issue any such press release or
make any such public statement prior to such consultation and approval, except
as may be required by applicable law, court process or by obligations pursuant
to any listing agreement with any national securities exchange or the National
Association of Securities Dealers, Inc or disclosures to advisors and financing
sources of each Party and disclosures required in connection with FCC approvals
or financing transactions.

          11.11   Entire Agreement. This Agreement, all Schedules and Exhibits
and all agreements, certificates and instruments delivered by the Parties
pursuant to the terms of this Agreement represent the entire understanding and
agreement between the Parties with respect to the subject matter hereof,
supersede all prior negotiations and agreements between the Parties, including
the Letter of Intent, and can be amended, supplemented, waived or changed only
by an amendment in writing which makes specific reference to this Agreement or
the amendment, as the case may be, and which is signed by the Party against whom
enforcement of any such amendment, supplement, waiver or modification is sought.

                                       37

<PAGE>

                  IN WITNESS WHEREOF, the Parties have caused this Agreement to
be executed and delivered by their duly authorized officers on the day and year
first above written.

                                GUAJILLO INVESTMENTS, LLC

                                By:   /s/ Cheryl Stewart
                                    -------------------------------
                                      Cheryl Stewart
                                      Managing Member

                                LBI HOLDINGS II, INC.

                                By:   /s/ Lenard D. Liberman
                                    -------------------------------
                                      Lenard D. Liberman
                                      Executive Vice President

                                LIBERMAN BROADCASTING OF HOUSTON, INC.

                                By:   /s/ Lenard D. Liberman
                                    -------------------------------
                                      Lenard D. Liberman
                                      Executive Vice President

                                and

                                LIBERMAN BROADCASTING OF HOUSTON LICENSE CORP.

                                By:   /s/ Lenard D. Liberman
                                    -------------------------------
                                      Lenard D. Liberman
                                      Executive Vice President

                                      S-1               Asset Purchase Agreement

<PAGE>

                                  SCHEDULE 4.7

Relating to the Station Lease Agreement dated July 29, 1991, between North Star
(KIOX-FM) and Cue Paging Corporation ("Cue") Cue failed to make its June 2002
payment and information received indicates that on June 17, 2002 Cue made a
general assignment for the benefit of creditors.

                                 Schedule 4.7-1

<PAGE>

                                   SCHEDULE I

                    Identification of Contracts to be Assumed

A.       STUDIO LOCATION- HIGHWAY 35 EAST BAY CITY, TEXAS (LAND LEASE; BUILDING
         IS OWNED IN FEE)

1.       Lease Agreement between Cathryn Long Clark, now deceased, former
         independent Executrix of the Estate of John G. Long, Deceased, and
         James M. Allen, Independent Administrator of the Estate of Mary Adams
         Long, Deceased, collectively, as Lessor and North Star Communications,
         Inc. ("North Star"), as Lessee dated August 22, 1988

B.       STL LOCATION - EL MATON, MATAGORDA COUNTY, TEXAS (LAND LEASE)

         1.    Tower Site Lease Agreement dated August 22, 1990, between Rebecca
               Jo Taska, Trustee for Amy Taska Osina under the Taska Trust
               Agreement dated June 15, 1988, as Lessor, and North Star, as
               Lessee
         2.    Letter from Landrum Enterprises, Inc. dated April 17, 1996
               regarding Tower Site Lease Agreement
         3.    Bill of Sale and Assignment Agreement dated June 1, 1996 between
               Landrum Enterprises, Inc. and Guajillo Investments, L.L.C.
         4.    Assignment of Leases dated June 1, 1996 between Landrum
               Enterprises, Inc. and Guajillo Investments, L.L.C.

C.       LAND AND TOWER LEASE IN COLLEGEPORT, TEXAS

         1.    a)   Tower Lease Agreement between Tiner Associates, Inc., as
                    Lessor, and KXGJ Radio Station & John Wiggins, as Lessee
                    dated June 26, 1995
               b)   Tower Lease Modification Agreement dated _________, 2000
               c)   Letter to Tenant from James L. Tiner ("Tiner") regarding
                    Tower Lease dated February 18, 2001
         2.    Assignment of Leases by and between 5 Star Radio, L.L.C., as
               Assignor, and Guajillo LLC, as Assignee, dated June 11, 1999
         3.    a)   Lease Agreement dated June 1, 1995, between O.B. Stanley
                    ("Stanley") and KXGJ Radio Station and John Wiggins
               b)   Land Lease Assignment dated _________, 2000
         4.    Lease Confirmation and Modification Agreement dated as of
               ________, 2002 by and among Guajillo, Tiner and Stanley with
               respect to the Land Lease and the Tower Lease to be delivered by
               Closing.

ALSO SEE SCHEDULE I - CONT. (TOWER SUBLEASES)

                                  Schedule I-1

<PAGE>

                                   SCHEDULE II

                      List of all Permits and FCC Licenses

<TABLE>
<CAPTION>
        --------------------------------------------------------------------------------------------
               FCC Licenses and Permits                                                Expiration
                                                                                       Date

        --------------------------------------------------------------------------------------------
               <S>                                                                     <C>
               Federal Communications Commission Radio Broadcast Station License       8/1/05
               for KIOX-FM, File No. BLH 19910221KA, as renewed pursuant to
               Application for Renewal of License No. BRH19970403WF, together
               with the following auxiliary licenses: WHM943 (STL), WME985
               (STL), WLQ250 (STL) and KB97120 (RPU).

               The ASR for the tower used for this station is 1047127. The tower
               is registered to Guajillo Investments, LLC.

        --------------------------------------------------------------------------------------------
               Federal Communications Commission Radio Broadcast Station License       8/1/05
               for KXGJ, File No. BLH 19951012KA, as renewed pursuant to
               Application for Renewal of License, No. BRH 19970401ZS, together
               with the following auxiliary license: WPNJ956 (STL).

               The ASR for the tower used for this station is 1028576. The tower
               is registered to Tiner Communications Service Inc. (parties
               acknowledge that this name is different than the name on the
               lease with Tiner, as amended)

        --------------------------------------------------------------------------------------------
</TABLE>

                                 Schedule II-1

<PAGE>

                                  SCHEDULE III

                     List of Required Consents, Encumbrances
                           and UCC-1 Filing Statements

Required Consents (Seller)

1. Federal Communications Commission consents to the Assignment Applications
which Seller and Buyer will file with the Federal Communications Commission
requesting its written consent to the assignment of the FCC Licenses from Seller
to LBI Sub.

2. An Estoppel and Memorandum of Lease and Consent from each of the landlords
under the leasehold interests in the Real Property, all in the forms attached as
Exhibit E.

3. A Consent and Release from Westburg Media Capital, L.P.

4. A Consent and Release from the Terminal Marketing Co., Inc.

5. 2/nd/ Modification to Tower Lease by and among Guajillo and Tiner Tower LLC,
as successor to Tiner Associates, Inc.

Required Consents (Buyer)

1. Federal Communications Commission consents to the Assignment Applications
which Seller and Buyer will file with the Federal Communications Commission
requesting its written consent to the assignment of the FCC Licenses to LBI Sub.

2. Consent from Buyer's lenders.

Encumbrances

                                 Schedule III-1

<PAGE>

None, other than the following: (a) the Encumbrances resulting from the filing
of the UCC-1 filing statements described in the section in this Schedule
entitled "UCC Financing Statements" and (b) the leases that are set forth in
Schedule I (to the extent that a lease is considered to be an Encumbrance).

UCC Financing Statements

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                             TYPE OF      DATE
        DEBTOR NAME                   JURISDICTION                SECURED PARTY              FILING       FILED         FILE NO.
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>                       <C>                                <C>         <C>           <C>
Guajillo Investments, LLC       East Baton Rouge Parish   Westburg Media Capital, L.P.       UCC-1       01/14/02      17-1226519
                                          (LA)
====================================================================================================================================
Guajillo Investments, LLC       East Baton Rouge Parish   Textron Financial Corporation      UCC-3       02/20/02      17-1228134
                                          (LA)
------------------------------------------------------------------------------------------------------------------------------------
Guajillo Investments, LLC       Secretary of State (TX)   Westburg Media Capital, L.P.       UCC-1       06/07/99       99-114641
------------------------------------------------------------------------------------------------------------------------------------
Guajillo Investments, LLC       Secretary of State (TX)   The Terminal Marketing Co.,        UCC-1       07/25/00       00-549370
                                                          Inc.
------------------------------------------------------------------------------------------------------------------------------------
Guajillo Investments, LLC        Matagorda County (TX)    Westburg Media Capital, L.P.       UCC-1       06/08/99            5148
------------------------------------------------------------------------------------------------------------------------------------
Guajillo Investments, LLC        Matagorda County (TX)    The Terminal Marketing Co.,        UCC-1       07/31/00            5318
                                                          Inc.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

UCC Termination Statements

None, other than UCC release or termination statements releasing or terminating
the UCC-1 Financing statements set forth in the section in this Schedule
entitled "UCC Financing Statements" (the scope of release in such UCC release
statements to be satisfactory to Buyer).

                                Schedule III -2

<PAGE>

                                   SCHEDULE IV

                        Identification of Principal Items
                          of Tangible Personal Property

Location:
Main studio and Office building, Bay City, Matagorda County, Texas
Highway 35 East, Bay City, Texas

**KXGJ-FM Control Room**

1)       Mini-Mix 8A stereo console
1)       Electro Voice RE-20 microphone
1)       Radioshack SCT-86 cassette deck
2)       Tascam D-501 CD PB with remote control
1)       Sony MDR-7506 headphones
2)       Pioneer three-way speaker system
1)       OPTIMUS SCT-53 dual cassette deck
1)       Automax automation system, including Pentium 200 CPU, monitor,
         keyboard, mouse, and Automax Pro Radio software
1)       Wall mounted CD/Record storage rack
1)       Radioshack telephone flasher
1)       TM Century jingle package
1)       Mike Carta Liner (Air and Production) package
1)       Holly Anne EAS receiver
1)       TM Century Classic Country Music Library
1)       lot approximately 500 Classic Country CDs
1)       G.E. 13" color TV with remote
1)       Symetric 420 stereo power amplifier
1)       Broadcast tools 8x2 stereo switcher
1)       750 watt uninterruptible power supply
1)       Audiolab TD1B bulk eraser
1)       Gentner SPH-10 telephone hybrid
1)       Sony MES 705 mini-disc recorder/player

**KIOX-FM Control Room**

1)       Arrakis 12,000 Series 12 channel audio console
2)       JBL studio monitors
1)       Curtis Mathis 13" color television with remote
1)       Edcor headphone amplifier
2)       Technics compact disc players
1)       BTS computer keyboard
2)       ElectroVoice microphones
1)       Optimus digital AM-FM stereo receiver
1)       CRL Systems stereo gain controller
1)       CRL Systems spectral energy compressor
1)       CRL Systems FM stereo modulation processor

                                 Schedule IV-1

<PAGE>

1)       Scott Studios automation system with touch screen and PB & SS servers
1)       Sony mini-disc R/P system
1)       750 watt uninterruptible power supply
1)       TFT EAS controller
1)       TFT EAS system
1)       Crown stereo amplifier
1)       Gentner Digital Hybrid II telephone interface
1)       Broadcast tools 3x2 stereo switcher

**Production Room**

1)       Sony MDS-JE500 Minidisc R/PB unit
1)       TM Century 102 CD Production package, music beds and sound effects
1)       Arrakis Systems 12 channel audio console
1)       Electro-Voice microphone
1)       Senheiser microphone
1)       Pioneer 6-disc compact disc player
1)       Technics dual cassette deck
1)       Scott Systems production computer with PB server
2)       JBL studio monitors
1)       Fidelipac Dynamax stereo record/play cart machine
1)       Otari 2-track reel-to-reel tape recorder
1)       Edcor Sound, headphone amplifier
40)      Sound Ideas sound effects compact disc
25)      FirstComm production music library
1)       Crown stereo amplifier
1)       Gentner phone interface, Digital Hybrid II
1)       UREI 10 band stereo equalizer
1)       Eventide ultra-harmonizer
2)       Aphex compeller/aural exciter
1)       Production computer with 4 track audio card, cool edit pro software,
         and 16x CD burner
1)       Arrakis Systems; console power supply
1)       Sony portable mini-disc recorder/player

**Engineering Room**

1)       Audiolabs TD-1 bulk tape eraser
1)       Cerwin Vega three-way speaker systems
2)       Technics SL-1200 MKII turntable
2)       PD-M30 6-pak CK PB units
1)       Broadcast Electronics stereo generator
1)       TFT STL transmitter (not working)
1)       Norstar phone system
15)      Norstar phones throughout building
1)       voicemail system
1)       Marti remote pick-up transmitter frequencies 450.65 and 450.80
1)       Marti RPU transmitter and receiver
2)       Gentner Microtel remote phone interface
1)       Radioshack 12VDC to 115VAC portable power inverter

                                 Schedule IV-2

<PAGE>

1)       Kowler 8KW back-up generator, LP gas powered with auto transfer switch
5)       Miscellaneous cartridge playback machines

**STL Rack**

1)       TFT 884 FM Modulation Monitor (not working)
1)       Moseley Associates STL Transmitter, 6000 Series
1)       Orban Optimod FM 8100

Location:
STL hop site building and tower, El Maton, Matagorda County, Texas
12 mi. south of Bay City on Hwy. 35 to FR 1095 South
1.7 mi. south on FR 1095

**Outside Building**

1)       400' Esco tower
1)       6' STL receive dish antenna (on tower)
1)       6' STL transmit dish antenna (on tower)
1)       650' 7/8" coaxial cable to STL dishes

**Inside Building**

1)       TFT STL Receiver
1)       TFT STL transmitter, 949.6375 Mhz
1)       Uninterruptable power supply

Location:
FM main transmitter & generator building and FM tower, Francitas, Jackson
County, Texas
16.5 mi. south of Bay City on Hwy. 35 to FR 616 west (Blessing)
7.8 mi. west on FR 616 to CR 446
3 mi. north on CR 446

**Outside Building**

1)       1,014' Andrews tower-solid rod utility guyed tower
1)       Broadcast Electronics 8-bay antenna (on tower)
1)       1,000' 4" helix cable-nitrogen pressurized (to antenna)
1)       6' STL receive dish antenna (on tower)
1)       300' 7/8" coaxial cable (to dish)
1)       200 gallon steel diesel gas tank for generator (full)

**Inside Building**

1)       Broadcast Electronics FM-30B transmitter, 96,9 Mhz, 208 A/C, 60 hz, 3
         phase
1)       Broadcast Electronics FX-50 exciter
1)       Broadcast Electronics MVDS microprocessor video diagnostic system
1)       Broadcast Electronics APC automatic power control
1)       Extra power tube for FM-30B

                                 Schedule IV-3

<PAGE>

1)       TFT STL receiver, 949.6375 Mhz
2)       Gentner VRC interconnection
1)       Gentner VRC command relay
1)       Gentner data interface
1)       Belar FM modulation monitor
1)       Belar stereo monitor
1)       Gates FM10H3 FM transmitter (Standby) (Nonoperational)
1)       Flash Technology Corp. high Intensity tower strobe system FAA spec. No.
         L0856
1)       45 KW low pass filter, P/N 339-005-1
1)       Dielectric 3 1/8" rotary coaxial switch
1)       Kohler automatic power transfer switch, 120/240 volt, 225 Amp, 60 Hz, 3
         phase
1)       Detroit diesel engine with Kohler 100 amp 3-phase generator
1)       5-ton Carrier A/C unit
1)       3-ton Carrier A/C unit

**KXGJ-FM Tower Location**

Location:
FM transmitter and building, Collegeport, Matagorda County, Texas
Rt. 1 Robbins Slough Road
12.6 kilometers east of Palacios

**Outside Building**

1)       6 foot marked grid STL antenna
1)       12 Bay FM antenna-Jampro
1)       500 feet 41" tower with tapered section at antenna (leased)
1)       200 feet1/2" helix
1)       480 feet 3" helix
2)       Central air conditioning units (smaller unit needs a blower motor)
1)       Metal transmitter building approximately 10'x20'
1)       Wire fence enclosure around building and tower

**Inside Building**

1)       Moseley Associates Stereo SLT receiver, 6000 Series
1)       Sine Systems remote control system
1)       Broadcast Electronics FM-20T transmitter with BE FX50 exciter

Office Equipment

1)       Binding machine
1)       Paper cutter
5)       Business calculators
5)       Miscellaneous office computers with keyboards, monitors, and network
         hub
5)       HP color printers
1)       Ebsen wide-carriage printer
1)       Xerox copy machine
1)       Paper shredder
1)       Smith Corona electric typewriter

                                 Schedule IV-4

<PAGE>

1)       HP plain paper fax machine

Office Furniture

1)       Executive wooden desk
1)       Executive wooden credenza
1)       Executive wooden file cabinet
1)       Executive gray desk
1)       Executive gray credenza
1)       Executive gray 2-drawer file cabinet
1)       8' wooden conference table and 8 chairs
1)       5' double door metal supply cabinet
7)       Upholstered decorative chairs
3)       Highback desk chairs
8)       Wooden desks
13)      Desk chairs
1)       Large double chair with center table
6)       Utility tables
4)       Computer stations
2)       Partitions in sales area
1)       Wooden sofa table
1)       Glass coffee table
9)       2-drawer file cabinets
8)       4-drawer file cabinets
5)       Southwestern framed prints in lobby
1)       Wooden bookcase
2)       Bar stools
2)       Wall clocks
5)       Plastic shelving units
4)       Literature racks

Office Fixtures

1)       Refrigerator
1)       Microwave
1)       lot waste baskets
1)       5' artificial plant

                                 Schedule IV-5

<PAGE>

                                   SCHEDULE V

                        Allocation of the Purchase Price

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                         Method to be Used to Determine the          Allocated Amounts as
       Broadcasting Asset              Allocation of Purchase Price as of the        of the Closing Date
       ------------------                                                            -------------------
                                                  Closing Date
                                                  ------------
----------------------------------------------------------------------------------------------------------------
<S>                                    <C>                                           <C>
Property, plant and equipment
----------------------------------------------------------------------------------------------------------------
Goodwill and FCC License
----------------------------------------------------------------------------------------------------------------
Purchase Price
----------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Schedule V-1

<PAGE>

                                   SCHEDULE VI

                          Insurance Coverage Maintained
                        by Seller on the Purchased Assets

                               See attached pages

                                 Schedule VI-1

<PAGE>

                                  SCHEDULE VII

                     Identification of Intellectual Property

KIOX-FM Slogans
Gulf Coast Best Country X-97
Today's Hottest Country 96.9, X97-FM
Your Home for 20 in a Row, X-97

KIOX-FM Frequency
96.9 FM

KXGJ-FM Slogans:
Your Home for Continuous Country Classics, Pure Country, 101.7 FM
5 Decades of Back to Back Country, Pure Country 101.7 FM

KXGJ-FM Frequency
101.7 FM

                                 Schedule VII-1

<PAGE>

                                  SCHEDULE VIII

                                Prepaid Expenses

1.   Terminal Finance - one month advance on phone system ($523).

2.   Estate of Cathryn Clark -Studio Site Lease ($754.70).

3.   Upon Closing, Buyer will reimburse Seller for up to $2,750 for the annual
FCC regulatory fee.

                                 Schedule VIII-1

<PAGE>

                               SCHEDULE I (CONT.)
                                 Tower Subleases

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                   TENANT NAME                                       CURRENT            RENTAL
                                                                                   EXPIRATION           AMOUNT
                                                                                      DATE
------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>               <C>
A.     STUDIO BUILDING, BAY CITY, TEXAS

------------------------------------------------------------------------------------------------------------------
   1.  [TOWER SITE LEASED TO CHAMELEON (3 AM TOWERS)]                                   Month to       $750.00 per
                                                                                           Month     month ($9,000
       Oral Lease Agreement between Guajillo, as Owner, and Chameleon Radio                              per year)
       Corporation, as Lessee
------------------------------------------------------------------------------------------------------------------
B.     STL LOCATION, EL MATON, TEXAS (MATAGORDA COUNTY)

------------------------------------------------------------------------------------------------------------------
   1.  [GUAJILLO OWNS TOWER; SPACE ON TOWER LEASED TO LBR ENTERPRISES]            April 12, 2004     $6,000.00 per
                                                                                                              year
       Simple letter agreement between Guajillo and LBR Enterprises, Inc.
       dated March 28, 2001
------------------------------------------------------------------------------------------------------------------
C.     MAIN TRANSMITTER SITE, FRANCITAS, TEXAS

------------------------------------------------------------------------------------------------------------------
   1.  [GUAJILLO OWNS LAND; LAND LEASED FOR AGRICULTURE PURPOSES]                   February 28,   $10.00 per year
                                                                                           2003;
       Surface Lease Agreement effective as of March 1, 2000 between Guajillo,      automatic 1-
       as Lessor, and Alan P. Swenson, Brian M. Swenson and Sharon Swenson dba     year renewals
       Coastal Farms, as Lessee                                                  to February 28,
                                                                                            2009
------------------------------------------------------------------------------------------------------------------
   2.  [GUAJILLO OWNS TOWER; LEASES TOWER SPACE TO CENTRAL & SOUTH WEST            Lease expired     $1,782.00 per
       SERVICES]                                                                  April 30, 2000              year
                                                                                        - Tenant
       A)   Tower Lease Agreement dated April 4, 1995, between Landrum                 currently
       Enterprises, Inc. ("Landrum"), as Landlord and Central and South West      occupying on a
       Services Inc, ("Central and South"), as Tenant                            hold-over basis

       B)   Assignment of Leases dated May 31, 1996 by Landrum, as Assignor,
       Guajillo, as Assignee and Central and South, Lessee
------------------------------------------------------------------------------------------------------------------
   3.  [GUAJILLO OWNS TOWER; LEASES TOWER SPACE TO CENTRAL POWER AND LIGHT]         June 1, 2004         $1,461.50

       A)   Tower Lease Agreement dated July 11, 1994, between North Star
       Communications, Inc. ("North Star"), as Landlord, and Central Power and
       Light Company ("Central Power"), as Tenant

       B)   Assignment of Leases between North Star, as Assignor, Landrum, as
       Assignee, and Central Power, as Lessee, dated as of December 22, 1994

       C)   Assignment of Leases by and between Landrum, as Assignor, Guajillo,
       as Assignee, and Central Power, as Lessee, dated as of May 31, 1996

------------------------------------------------------------------------------------------------------------------
   4.  [GUAJILLO OWNS TOWER; LEASES SPACE ON TOWER TO CUE PAGING]                  July 28, 2006     $1,005.89 per
                                                                                                             month
       A)   Station Lease Agreement dated July 29, 1991, between North Star                        ($12,070.68 per
       (KIOX-FM) and Cue Paging Corporation ("Cue") (See Schedule 4.7)                                       year)

       B)   First Amendment to Station Lease Agreement dated July 29, 1991,
       between North Star and Cue

       C)   Assignment of Leases dated December 22, 1994, between North Star, as
       Assignor, Landrum, as Assignee and Cue, as Lessee

       D)   Assignment of Leases between Landrum, as Assignor, Guajillo LLC, as
       Assignee, and Cue as Lessee, dated as of May 31, 1996
------------------------------------------------------------------------------------------------------------------
</TABLE>

                              Schedule I (cont.)-1

<PAGE>

<TABLE>
<S>                                                                              <C>               <C>
------------------------------------------------------------------------------------------------------------------
D.     TRANSMITTER SITE, COLLEGEPORT, TEXAS

------------------------------------------------------------------------------------------------------------------
   1.  [Guajillo leases space on tower from Tiner; Tiner holds ground
       leasehold from Stanley; Guajillo owns transmitter building located on
       land owned by Stanley]
------------------------------------------------------------------------------------------------------------------
</TABLE>

                              Schedule I (cont.)-2

<PAGE>

                                   SCHEDULE IX

                                 EXCLUDED ASSETS
                       CHERYL STEWART'S PERSONAL ITEMS AT
                           STUDIO SITE IN BAY CITY, TX

I.     Cheryl's Office:

       1)    wood and glass hutch
       18)   decorative items in hutch
       5)    framed prints
       1)    decorative lamp
       1)    rectangular wooden table
       1)    plant stand
       1)    artificial plant
       1)    floral swag
       1)    crystal clock
       1)    crystal paperweight
       10)   framed pictures
       1)    computer and software
       1)    computer printer
       1)    computer monitor
       1)    computer keyboard and mouse

II.    Lobby:

       1)    framed print

III.   Breakroom:

       1)    wood and glass cabinet
       1)    green table with 2 chair

IV.    Conference Room:

       2)    framed Western print

V.     KXGJ Studio:

       1)    bar stool

                                  Schedule IX-1

<PAGE>

                                    EXHIBIT A

                               FORM OF GRANT DEED

                                   Exhibit A-1

<PAGE>

                                   EXHIBIT B-1

                        Legal Opinion of Seller's Counsel

[Closing Date]

LBI Holdings II, Inc.
Liberman Broadcasting of Houston, Inc.
Liberman Broadcasting of Houston License Corp.
1845 Empire Avenue
Burbank, California  91504

[Buyer's various lenders]

       Re:   Sale of Certain Assets of Guajillo Investments, LLC

Ladies and Gentlemen:

             We have acted as counsel to Guajillo Investments, LLC, a Louisiana
limited liability company ("Guajillo" or the "Seller"), in connection with the
sale by the Seller and the purchase by Liberman Broadcasting of Houston, Inc.
("LBI"), and Liberman Broadcasting of Houston License Corp., a California
corporation ("LBI Sub," and together with LBI, the "Buyers" and each
individually a "Buyer") of certain assets which are used or held for use in
connection with the operation of radio stations KIOX-FM (96.9 FM, El Campo,
Texas) and KXGJ (101.7 FM, Bay City, Texas) and related assets, license, permits
and authorizations issued by the Federal Communications Commission pursuant to
the Asset Purchase Agreement dated as of June 21, 2002 (the "Asset Purchase
Agreement"), by and among the Buyers, LBI Holdings II, Inc., a California
corporation ("LBI Holdings") and the Seller. We have also reviewed, among other
things, (i) the Corporate Custodial Agreement Relating to Earnest Money dated
June 21, 2002 executed by [a financial institution or escrow company approved by
all parties], as escrow agent, LBI Holdings and Guajillo (the "Escrow
Agreement"), (ii) one or more bills of sale conveying to one or both Buyers all
of the Tangible Personal Property and Intellectual Property, (iii) one or more
assignments assigning to one or both Buyers the FCC Licenses and each of the
Assumed Contracts and Required Consents, and (iv) [list other agreements and
documents] (the agreements and documents contained in clauses (i) through (iv)
above, together with the Asset Purchase Agreement, are collectively referred to
herein as the "Agreements"). We are providing this opinion to you at the request
of the Seller pursuant to Section 9.1.8 of the Asset Purchase Agreement. All
capitalized terms used in this opinion and not defined herein will have the
meanings given in the Asset Purchase Agreement.

             We have also acted as counsel to each member of the Seller (each a
"Member" and collectively "Members") in connection with the Member Guarantee.

             In our capacity as such counsel, we have examined originals or
copies of those limited liability company and other records and documents we
considered appropriate.

                                  Exhibit B-1-1

<PAGE>

             As to certain matters of fact related to the opinions hereafter
expressed, we have relied solely upon representations of Guajillo in the Asset
Purchase Agreement. Seller's factual representations in the Certificate of
Seller, dated __________, 2002 (the "Certificate of Seller"), and each Member's
factual representations in the Certificate of Members, dated ___________, 2002
(the "Certificate of Members"), a copy of each of which is attached hereto as
Exhibit A. In addition, we have obtained and relied upon those certificates of
public officials we considered appropriate.

             We have assumed the genuineness of all signatures, the authenticity
of all documents submitted to us as originals and the conformity with originals
of all documents submitted to us as copies. With respect to each natural person
who is a party to the transaction, we have assumed such person has sufficient
legal capacity to carry out his or her obligations under the Agreements to which
any such person is a party. To the extent the Seller's obligations under the
Agreements to which Seller is a party depend on the due authorization, execution
and delivery of the Agreements by the other parties to the Agreements (other
than Seller), we have assumed that the Agreements have been so authorized,
executed and delivered.

             On the basis of such examination, our reliance upon the assumptions
in this opinion and our consideration of those questions of law we considered
relevant, and subject to the limitations and qualifications in this opinion, we
are of the opinion that:

             (a)  Seller is a limited liability company validly existing under
the laws of the State of Louisiana with the limited liability company power to
own its properties and assets and to conduct any activity that a limited
liability company organized under the Louisiana Limited Liability Law may
conduct.

             (b)  Seller has appropriate power to enter into and to perform its
obligations under the Agreements to which Seller is a party.

             (c)  The execution, delivery and performance by Seller of the
Agreements to which Seller is a party have been duly authorized by all necessary
limited liability company action on the part of Seller, and the Agreements to
which Seller is a party have been duly executed and delivered by Seller. The
Member Guarantee has been duly executed and delivered by each Member.

             (d)  The Agreements to which Seller is a party and the Member
Guarantee constitute the legally valid and binding obligations of Seller or each
Member, as applicable, enforceable against Seller or each Member, as applicable,
in accordance with their respective terms, except as limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or
affecting creditors' rights generally (including, without limitation, fraudulent
conveyance laws) and by general principles of equity, including, without
limitation, concepts of materiality, reasonableness, good faith and fair
dealing, regardless of whether considered in a proceeding in equity or at law.

             (e)  Seller's and each Member's execution and delivery of, and
performance of its, his or her obligations on or prior to the date of this
opinion under, the Agreements to which Seller is a party and the Member
Guarantee, as the case may be, do not and will not (i) violate such Seller's
organizational documents and operating agreement, (ii) violate, breach, or
result in

                                  Exhibit B-1-2

<PAGE>

a default under, or result in the creation or imposition of any lien, charge or
encumbrance upon any of the assets of Seller or any Member, under any existing
obligation of or restriction on Seller or any Member under any agreement to
which it, he or she is a party identified in the Certificate of Seller or the
Certificate of Members as being a material agreement of the Seller or any
Member, or (iii) breach or otherwise violate any existing obligation of or
restriction on Seller or any Member under any order, judgment or decree of any
Louisiana or federal court or governmental authority binding on Seller or any
Member which is identified in the Certificate of Seller.

             (f)  The execution and delivery by Seller or any Member of, and
performance of its, his or her obligations on or prior to the date of this
opinion under, the Agreements to which Seller is a party or the Member
Guarantee, as the case may be, do not conflict with or violate any statute, law,
regulation or rule of the United States or the State of Louisiana known to us,
recognizing that we have not undertaken, with your consent, any due diligence
investigation or research, recognized as applicable to Seller or any Member or
to transactions of the type contemplated by the Agreements or the Member
Guarantee.

             (g)  Except as set forth on Schedule __ hereto, no order, consent,
permit or approval of any Louisiana or federal government authority known to us,
recognizing that we have not undertaken, with your consent, any due diligence
investigation or research, recognized as applicable to Seller or any Member or
to transactions of the type contemplated by the Agreements to which Seller is a
party or the Member Guarantee is required on the part of Seller or any Member
for the execution and delivery of, and performance of its, his or her
obligations on or prior to the date of this opinion under, the Agreements to
which Seller is a party or the Member Guarantee.

             (h)  Except for the matters described in Schedule __ to the Asset
Purchase Agreement, we have not given substantive attention on behalf of Seller
or represented Seller or any Member in connection with any action, suit or
proceeding pending or threatened against Seller or any Member before any court,
arbitrator or governmental agency.

             Our opinion in paragraph (d) above as to the enforceability of the
Agreements is subject to:

             (i)   public policy considerations, statutes or court decisions
             that may limit the rights of a party to obtain indemnification
             against its own negligence, willful misconduct or unlawful conduct;

             (ii)  the unenforceability under certain circumstances of broadly
             or vaguely stated waivers or waivers of rights granted by law where
             the waivers are against public policy or prohibited by law;

             (iii) the unenforceability under certain circumstances of
             provisions imposing penalties and liquidated damages; and

             (iv)  the unenforceability under certain circumstances of choice of
             law provisions.

                                  Exhibit B-1-3

<PAGE>

             We express no opinion with respect to the creation, attachment or
priority of any security interests, or your ability to collect attorney's fees
and costs in an action involving the Agreements if you are not the prevailing
party in that action.

             We express no opinion as to any provision of any Agreement
requiring written amendments or waivers of such Agreement insofar as it suggests
that oral or other modifications, amendments or waivers could not be effectively
agreed upon by the parties or that the doctrine of promissory estoppel might not
apply.

             For purposes of the opinion expressed in paragraphs (e), (f) and
(g), we have assumed that the Seller will not in the future take any
discretionary action (including a decision not to act) permitted by the
Agreements that would cause the performance of the Agreements to constitute a
violation or breach of or default under any of the orders, judgments or decrees
referred to in clause (iii) of paragraph (e) or violate any Louisiana or federal
statute, rule or regulation, require an order, consent, permit or approval to be
obtained from a Louisiana or federal governmental authority.

             We express no opinion concerning (i) federal or state antitrust,
unfair competition or trade practice laws or regulations, (ii) pension and
employee benefit laws and regulations, (iii) federal or state environmental laws
and regulations, (iv) federal or state land use or subdivision laws or
regulations or (v) federal or state laws and regulations relating to
communications.

             In rendering the opinion set forth in paragraph (a) above with
respect to the good standing of Guajillo under the laws of the State of
Louisiana, we have relied solely upon the certificate dated [_______] from the
Secretary of State of the State of Louisiana.

             The law covered by this opinion is limited to the present federal
law of the United States and the present law of the State of Louisiana. We
express no opinion as to the laws of any other jurisdiction and no opinion
regarding the statutes, administrative decisions, rules, regulations or
requirements of any county, municipality, subdivision or local authority of any
jurisdiction. Insofar as the opinions rendered herein relate to documents
governed by the laws of the State of Texas, we have advised you that we are
members of the bar of the State of Louisiana and are not familiar with the laws
of the State of Texas and render no opinion about them. For the purpose of these
opinions, we have assumed, with your consent, that the laws of the State of
Texas are identical in all respects to the laws of the State of Louisiana.

             Our use of the terms "known to us," "to our knowledge," or similar
phrase to qualify a statement in this opinion means that those attorneys in this
firm who have given substantive attention to the representation described in the
introductory paragraph of this opinion do not have current actual knowledge that
the statement is inaccurate. Such terms do not include any knowledge of other
attorneys within our firm (regardless of whether they have represented or are
representing the Seller and the Members in connection with any other matter) or
any constructive or imputed notice of any matters or items of information. We
have not undertaken any independent investigation to determine the accuracy of
the statement, and any limited inquiry undertaken by us during the preparation
of this opinion should not be regarded as such an investigation. No inference as
to our knowledge of any matters bearing on the accuracy of any such statement
should be drawn from the fact of our representation of the Seller and the
Members in connection with this opinion or in other matters.

                                  Exhibit B-1-4

<PAGE>

         We have made no examination or investigation to verify the accuracy or
completeness of any financial, accounting, tax or statistical information
furnished to you or with respect to any other financial, accounting, tax or
statistical matters and express no opinion with respect thereto. Further, no
opinions are expressed herein with respect to any federal or state securities
laws or federal, state or local tax laws.

         This opinion is expressed as of the above date and we do not undertake
to provide any opinion as to matters, or to advise any person or entity with
respect to any events or changes of laws or conditions, occurring subsequently
to the date hereof.

         The foregoing expresses our legal opinion as to the matters set forth
above based upon our professional knowledge and judgment. This opinion should
not be construed as a guaranty that a court considering such matters would not
rule in a manner contrary to the opinion set forth above.

         This opinion is (i) solely for your information in connection with the
Agreements, (ii) not to be relied upon by any other person or entity for any
reason whatsoever, (iii) not to be quoted in whole or in part or otherwise
referred to in any document except as directly a part of and related to such
transactions contemplated by the Agreements, and (iv), except as required by
applicable law, not to be filed with any government agency or any other entity
or person whatsoever. We have, however, delivered a copy of this opinion to
[names of Buyers' various lenders] under [list of Buyers' credit documents],
each of which lenders (together with any actual or prospective participants,
assignees and successors thereunder from time to time party thereto) may rely on
this opinion as if it were addressed and had been delivered to it on the date of
this opinion.

                             Respectfully submitted,

                                 Exhibit B-1-5

<PAGE>

                                   EXHIBIT B-2

                     Legal Opinion of Seller's Counsel (FCC)

                                           [The Closing Date]

LBI Holdings II, Inc.
Liberman Broadcasting of Houston, Inc.
Liberman Broadcasting of Houston License Corp.
1845 Empire Avenue
Burbank, California 91504

Gentlemen:

         We have acted as special communications law counsel for Guajillo
Investments, L.L.C., a Louisiana limited liability company ("Seller"), and we
have been asked to render our opinion concerning certain matters relating to the
Asset Purchase Agreement dated the 21st day of June, 2002 (the "Agreement") by
and among Seller, on the one hand, and LBI Holdings II, Inc., a California
corporation ("LBI Holdings"), Liberman Broadcasting of Houston, Inc., a
California corporation ("LBI"), and Liberman Broadcasting of Houston License
Corp., a California corporation ("LBI Sub"), on the other, providing for the
sale of assets used or useful in the operation of Stations KIOX-FM, 96.9 FM, El
Campo, Texas and KXGJ-FM, 101.7 FM, Bay City, Texas (the "Stations").

         This opinion is limited strictly to matters arising under the
Communications Act of 1934, as amended, and the published rules, regulations and
policies promulgated thereunder by the FCC (as defined below) (collectively, the
"Communications Laws"), and we express no opinion on any other matter
whatsoever. Furthermore, this opinion addresses matters only as of the date of
this opinion, and we specifically disclaim all responsibility for advising you,
your successors or assigns, and your counsel of changes in matters addressed
herein occurring after such date.

         We have examined such records of and related to the Stations that are
routinely available for public inspection at the Federal Communications
Commission ("FCC"), as we have deemed appropriate or necessary as the basis for
the opinions hereinafter set forth, including a review of the files available in
the FCC's public reference room on _______, 2002 [Note: Date to be within five
(5) business days of the Closing Date]. We also have reviewed the Agreement, one
or more assignments assigning to one or both Buyers the FCC Licenses, and the
files of this firm with respect to our representation of Seller before the FCC.
Whenever the opinions herein with respect to the existence or absence of facts
is indicated to be based on our knowledge or awareness, it is intended to
indicate that during the course of our representation, no information has come
to our attention, which would give us actual knowledge of such facts. For
purposes of this opinion, the definition of the term "actual knowledge" as such
term relates to this firm is based solely upon the actual conscious knowledge of
attorneys who are currently members or employees of this firm who are directly
involved in representation of Seller; and to the extent not inconsistent with
such actual conscious knowledge, reliance on representations as to factual

                                 Exhibit B-2-1

<PAGE>

matters, including representations contained in the Agreement or in one or more
certificates of Seller or of a member or members of Seller, without
investigation or special inquiry on our part to verify the accuracy of such
representations except as expressly provided otherwise herein; and a review of
the Agreement and other documents specifically identified herein as examined in
connection with the rendering of this opinion including the review of the
routinely available public records of the FCC and the files of this firm with
respect to our representation of Seller before the FCC, in each case, as
described above. Other than the review described in this paragraph, with your
consent we have not undertaken any independent investigation to determine the
existence or absence of such facts, nor have we inspected the Stations, and no
inference as to our knowledge of the existence or absence of such facts should
be drawn from our serving as special communications counsel to Seller.

         In making such examinations, we have assumed the (i) genuineness of all
signatures, (ii) legal capacity of all natural persons, (iii) authenticity of
all documents submitted to us as originals, and (iv) conformity to originals of
all documents submitted to us as certified or photostatic copies. Furthermore,
we have assumed the completeness of the public files maintained by the FCC and
the accuracy and authenticity of all documents contained therein.

         Based on the foregoing, and subject to the assumptions, qualifications
and exceptions contained herein, we are of the opinion that:

            1.  The licenses listed in the Attachment (the "FCC Licenses") are
                in full force and effect and Seller is the holder of such
                licenses. Seller has obtained all consents from the FCC
                necessary to assign the licenses for the Stations to LBI Sub. To
                the best of our knowledge, the FCC Licenses are all the licenses
                necessary to operate a Class C1 FM radio station on 96.9 MHz and
                a Class C1 FM radio station on 101.7 MHz at El Campo and Bay
                City, Texas, respectively, in the manner presently operated by
                Seller.

            2.  The order of the FCC granting its consent for the assignment of
                the FCC Licenses to LBI Sub (the "FCC Consent") was issued on
                _____________ and public notice of the FCC Consent was given on
                ____________. The time provided by the Communications Laws
                within which a party in interest other than the FCC may seek
                administrative reconsideration or review of the FCC Consent has
                expired, and to our knowledge, and based upon our review of the
                FCC's files, no petition for reconsideration or application for
                review was filed within such time with the FCC. The time
                provided by the Communications Laws within which the FCC may
                review the FCC Consent on its own motion has expired, and the
                FCC did not give public notice of its intent to review the FCC
                Consent on its own motion and, to our knowledge, the FCC has not
                otherwise stated an intent to review the FCC Consent on its own
                motion. With respect to our opinion in this paragraph 2., we
                advise you that in extraordinary circumstances, the FCC and the
                courts have held that petitions for review or reconsideration
                may be considered even if filed after the period prescribed by
                rule or statute for such submissions. Additionally, in previous
                cases where the FCC discovered procedural irregularities, it has
                reconsidered its prior action well after the standard time for
                such reconsideration had expired.

                                 Exhibit B-2-2

<PAGE>

            3.  To our knowledge, except for proceedings of general
                applicability to the broadcast industry, we have not been
                notified of, and the FCC has not issued any public notice
                announcing, any formal investigative proceeding or claim, and we
                are not aware of any other legal or administrative proceeding
                pending before the FCC against the Stations or Seller with
                respect to the Stations which could reasonably be expected to
                result in the revocation, nonrenewal or suspension of the FCC
                Licenses, the imposition of any fine or forfeiture, reporting
                requirements or other sanction against the Stations or Seller
                with respect to the Stations by the FCC, or the adverse material
                modification of the FCC Licenses.

            4.  The execution, delivery and consummation of the Agreement by
                Seller do not violate the Communications Laws.

         This opinion is (i) solely for your information in connection with the
consummation of the assignment of the FCC Licenses by Seller to LBI Sub, (ii)
not to be relied upon by any other person or entity for any reason whatsoever,
(iii) not to be quoted in whole or in part or otherwise referred to in any
document except as directly a part of and related to transactions contemplated
by the Agreements, and (iv), except as required by applicable law, not to be
filed with any government agency or any other entity or person whatsoever. We
have, however, delivered a copy of this opinion to [names of Buyers' various
lenders] under [list of Buyers' credit documents], each of which lenders
(together with any actual or prospective participants, assignees and successors
thereunder from time to time party thereto) may rely on this opinion as if it
were addressed and had been delivered to it on the date of this opinion.

                                   Sincerely,

                                   HEBERT, SPENCER, CUSIMANO & FRY, L.L.P.

                                   Charles L. Spencer

CLS/bsb

                                 Exhibit B-2-3

<PAGE>

                                                                      ATTACHMENT

FCC LICENSES

Call Sign                  Type                               Expiration
---------                  ----                               ----------

KIOX-FM                    Main Station                       08/01/2005
KXGJ-FM                    Main Station                       08/01/2005
WME985                     STL                                08/01/2005
WLQ250                     STL                                08/01/2005
WPNJ956                    STL                                08/01/2005

                                 Exhibit B-2-4

<PAGE>

                                    EXHIBIT C

                     Legal Opinion of LBI Entities' Counsel

[Closing Date]

Guajillo Investments, LLC
[Address]

[Buyer's various lenders]

         Re: Purchase of Certain Assets of Guajillo Investments, LLC

Ladies and Gentlemen:

         We have acted as counsel to LBI Holdings II, Inc., a California
corporation ("LBI Holdings"), Liberman Broadcasting of Houston, Inc., a
California corporation ("LBI") and Liberman Broadcasting of Houston License
Corp., a California corporation ("LBI Sub", and together with LBI Holdings and
LBI, the "LBI Entities" and each individually an "LBI Entity"), in connection
with the acquisition by the LBI Entities of certain assets which are used or
held for use in connection with the radio stations KIOX-FM (96.9 FM, El Campo,
Texas) and KXGJ (101.7 FM, Bay City, Texas) and related assets, license, permits
and authorizations issued by the Federal Communications Commission to Guajillo
Investments, LLC, a Louisiana limited liability company (the "Seller") pursuant
to the Asset Purchase Agreement dated as of June 21, 2002 (the "Asset Purchase
Agreement"), by and among the LBI Entities and the Seller. We have also
reviewed, among other things, the Corporate Custodial Agreement Relating to
Earnest Money dated June 21, 2002 executed by [a financial institution or escrow
company approved by all parties], as escrow agent, LBI Holdings and Seller (the
"Escrow Agreement" and together with the Asset Purchase Agreement, the
"Agreements"). We are providing this opinion to you at the request of the LBI
Entities pursuant to Section 9.2.2 of the Asset Purchase Agreement. All
capitalized terms used in this opinion and not defined herein will have the
meanings given in the Asset Purchase Agreement.

         In our capacity as such counsel, we have examined originals or copies
of those corporate and other records and documents we considered appropriate.

         As to relevant factual matters, we have relied upon, among other
things, the LBI Entities' factual representations in the Certificates of LBI
Entity, dated __________, 2002 (the "Certificates of LBI Entity"), a copy of
each of which is attached hereto as Exhibit A. In addition, we have obtained and
relied upon those certificates of public officials we considered appropriate.

         We have assumed the genuineness of all signatures, the authenticity of
all documents submitted to us as originals and the conformity with originals of
all documents

                                   Exhibit C-1

<PAGE>

submitted to us as copies. With respect to each natural person who is a party to
the transaction, we have assumed such person has sufficient legal capacity to
carry out his or her obligations under the Agreements to which any such person
is a party. To the extent the LBI Entities' obligations under the Agreements to
which each LBI Entity is a party depend on the due authorization, execution and
delivery of the Agreements by the other parties to the Agreements (other than
any of the LBI Entities), we have assumed that the Agreements have been so
authorized, executed and delivered.

         On the basis of such examination, our reliance upon the assumptions in
this opinion and our consideration of those questions of law we considered
relevant, and subject to the limitations and qualifications in this opinion, we
are of the opinion that:

         (a) Each LBI Entity is a corporation validly existing under the laws of
the State of California with the corporate power to own its properties and
assets and to conduct any activity that a corporation organized under the
California General Corporation Law may conduct (other than the banking,
insurance or trust company business or the rendering of "professional services"
as defined in Subdivision (a) of Section applicable 13401 of the California
Corporations Code).

         (b) Each LBI Entity has corporate power to enter into and to perform
its obligations under the Agreements to which such LBI Entity is a party.

         (c) The execution, delivery and performance by any LBI Entity of the
Agreements to which such LBI Entity is a party have been duly authorized by all
necessary corporate action on the part of such LBI Entity, and the Agreements to
which such LBI Entity is a party have been duly executed and delivered by such
LBI Entity.

         (d) The Agreements to which any LBI Entity is a party constitute the
legally valid and binding obligations of such LBI Entity, enforceable against
such LBI Entity in accordance with their respective terms, except as may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting creditors' rights generally (including, without
limitation, fraudulent conveyance laws) and by general principles of equity,
including, without limitation, concepts of materiality, reasonableness, good
faith and fair dealing, regardless of whether considered in a proceeding in
equity or at law.

         (e) The execution and delivery by any LBI Entity of, and performance of
its obligations on or prior to the date of this opinion under, the Agreements to
which such LBI Entity is a party, do not and will not (i) violate such LBI
Entity's Articles of Incorporation or Bylaws, (ii) violate, breach, or result in
a default under, or result in the creation or imposition of any lien, charge or
encumbrance upon any of the assets of such LBI Entity under, any existing
obligation of or restriction on such LBI Entity under any agreement to which it
is a party identified in the applicable Certificate of LBI Entity as being a
material agreement of such LBI Entity, or (iii) to our knowledge, breach or
otherwise violate any existing obligation of or restriction on such LBI Entity
under any order, judgment or decree of any California or federal court or
governmental authority binding on such LBI Entity.

         (f) The execution and delivery by any LBI Entity of, and performance of
its obligations on or prior to the date of this opinion under, the Agreements to
which such LBI

                                   Exhibit C-2

<PAGE>

Entity is a party do not violate any current California or federal statute or
regulation that we have, in the exercise of customary professional diligence,
recognized as applicable to such LBI Entity or to transactions of the type
contemplated by the Agreements.

         (g) Except as set forth on Schedule __ hereto, no order, consent,
permit or approval of any California or federal government authority that we
have, in the exercise of customary professional diligence, recognized as
applicable to any LBI Entity or to transactions of the type contemplated by the
Agreements to which such LBI Entity is a party is required on the part of such
LBI Entity for the execution and delivery of, and performance of its obligations
on or prior to the date of this opinion under, the Agreements to which such LBI
Entity is a party.

         Our opinion in paragraph (d) above as to the enforceability of the
Agreements is subject to:

         (i)   public policy considerations, statutes or court decisions that
         may limit the rights of a party to obtain indemnification against its
         own negligence, willful misconduct or unlawful conduct;

         (ii)  the unenforceability under certain circumstances of broadly or
         vaguely stated waivers or waivers of rights granted by law where the
         waivers are against public policy or prohibited by law;

         (iii) the unenforceability under certain circumstances of provisions
         imposing penalties and liquidated damages; and

         (iv)  the unenforceability under certain circumstances of choice of law
         provisions.

         We express no opinion with respect to the creation, attachment or
priority of any security interests, or your ability to collect attorney's fees
and costs in an action involving the Agreements if you are not the prevailing
party in that action (we call your attention to the effect of Section 1717 of
the California Civil Code, which provides that where a contract permits one
party thereto to recover attorney's fees, the prevailing party in any action to
enforce any provision of the contract shall be entitled to recover its
reasonable attorney's fees).

         We express no opinion as to any provision of any Agreement requiring
written amendments or waivers of such Agreement insofar as it suggests that oral
or other modifications, amendments or waivers could not be effectively agreed
upon by the parties or that the doctrine of promissory estoppel might not apply.

         For purposes of the opinion expressed in paragraphs (e), (f) and (g),
we have assumed that the Buyer will not in the future take any discretionary
action (including a decision not to act) permitted by the Agreements that would
cause the performance of the Agreements to constitute a violation or breach of
or default under any of the orders, judgments or decrees referred to in clause
(iii) of paragraph (e) or violate any California or federal statute, rule or
regulation, require an order, consent, permit or approval to be obtained from a
California or federal governmental authority.

         In rendering the opinion set forth in paragraph (a) above with respect
to the good standing of each LBI Entity under the laws of the State of
California, we have relied solely upon

                                   Exhibit C-3

<PAGE>

a certificate dated [_______] from the Secretary of State of the State of
California as to each LBI Entity's good standing in the State of California.

         We express no opinion concerning (i) federal or state antitrust, unfair
competition or trade practice laws or regulations, (ii) pension and employee
benefit laws and regulations, (iii) federal or state environmental laws and
regulations, (iv) federal or state land use or subdivision laws or regulations
or (v) federal or state laws and regulations relating to communications.

         The law covered by this opinion is limited to the present federal law
of the United States and the present law of the State of California. We express
no opinion as to the laws of any other jurisdiction and no opinion regarding the
statutes, administrative decisions, rules, regulations or requirements of any
county, municipality, subdivision or local authority of any jurisdiction.
Insofar as the opinions rendered herein relate to documents governed by the laws
of the State of Texas, we have advised you that we are members of the bar of the
State of California and are not familiar with the laws of the State of Texas and
render no opinion about them. For the purposes of these opinions, we have
assumed, with your consent, that the laws of the State of Texas are identical in
all respect to the laws of the State of California.

         Our use of the terms "known to us," "to our knowledge," or similar
phrase to qualify a statement in this opinion means that those attorneys in this
firm who have given substantive attention to the representation described in the
introductory paragraph of this opinion do not have current actual knowledge that
the statement is inaccurate. Such terms do not include any knowledge of other
attorneys within our firm (regardless of whether they have represented or are
representing the LBI Entities in connection with any other matter) or any
constructive or imputed notice of any matters or items of information. We have
not undertaken any independent investigation to determine the accuracy of the
statement, and any limited inquiry undertaken by us during the preparation of
this opinion should not be regarded as such an investigation. No inference as to
our knowledge of any matters bearing on the accuracy of any such statement
should be drawn from the fact of our representation of the LBI Entities in
connection with this opinion or in other matters.

         This opinion is (i) solely for your information in connection with the
Agreements, (ii) not to be relied upon by any other person or entity for any
reason whatsoever, (iii) not to be quoted in whole or in part or otherwise
referred to in any document except as directly a part of and related to such
transactions contemplated by the Agreements, and (iv), except as required by
applicable law, not to be filed with any government agency or any other entity
or person whatsoever. We have, however, delivered a copy of this opinion to
[names of Buyers' various lenders] under [list of Buyers' credit documents],
each of which lenders (together with any actual or prospective participants,
assignees and successors thereunder from time to time party thereto) may rely on
this opinion as if it were addressed and had been delivered to it on the date of
this opinion.

                             Respectfully submitted,

                                   Exhibit C-4

<PAGE>

                                    EXHIBIT D

                                MEMBER GUARANTEE

         This Guarantee is entered into as of ______________ by Cheryl Stewart,
Peter Scalfano, and Joseph Clements, Jr., each an individual (each a "Guarantor"
and collectively the "Guarantors"), in favor of and for the benefit of LBI
Holdings II, Inc., a California corporation, LBI Broadcasting of Houston, Inc.,
a California corporation and LBI Broadcasting of Houston License Corp.
(collectively the "Guarantied Parties"), party to that certain Asset Purchase
Agreement dated June 21, 2002 by and among Guajillo Investments, LLC, a
Louisiana limited liability company, (the "Seller") and the Guarantied Parties (
the "Asset Purchase Agreement"; capitalized terms defined therein and not
otherwise defined herein being used herein as therein defined).

         1. Guarantee; Limit. Guarantors jointly and severally, irrevocably and
unconditionally guarantee, as primary obligors and not merely as sureties, the
due and punctual payment in full of all Guarantied Obligations (as hereinafter
defined) when the same shall become due, whether at stated maturity, by
acceleration, demand or otherwise (including amounts that would become due but
for the operation of the automatic stay under Section 362(a) of the Bankruptcy
Code, 11 U.S.C. (S) 362(a)). The term "Guarantied Obligations" is used herein in
its most comprehensive sense and includes any and all obligations of Seller,
including all Seller's indemnities and liabilities of whatsoever nature, now or
hereafter made, incurred or created in connection with the Asset Purchase
Agreement, including but not limited to the indemnification obligations set
forth in Article X.

         In consideration of the Seller receiving funds from the Guarantied
Parties, which funds will be distributed to the Guarantors as the only members
of the Seller, each Guarantor knowingly, voluntarily and intentionally agrees
and acknowledges receipt of full and complete consideration.

         Any interest on any portion of the Guarantied Obligations that accrues
after the commencement of any proceeding, voluntary or involuntary, involving
the bankruptcy, insolvency, receivership, reorganization, liquidation or
arrangement of Seller (or, if interest on any portion of the Guarantied
Obligations ceases to accrue by operation of law by reason of the commencement
of said proceeding, such interest as would have accrued on such portion of the
Guarantied Obligations if said proceeding had not been commenced) shall be
included in the Guarantied Obligations because it is the intention of Guarantors
and the Guarantied Parties that the Guarantied Obligations should be determined
without regard to any rule of law or order that may relieve Seller of any
portion of such Guarantied Obligations.

         In the event that all or any portion of the Guarantied Obligations is
paid by Seller, the obligations of the Guarantors hereunder shall continue and
remain in full force and effect or be reinstated, as the case may be, in the
event that all or any part of such payment(s) is rescinded or recovered directly
or indirectly from a Guarantied Party as a preference, fraudulent transfer or
otherwise, and any such payments that are so rescinded or recovered shall
constitute Guarantied Obligations.

                                   Exhibit D-1

<PAGE>

               Subject to the other provisions of this Section 1, upon
failure of Seller to pay any of the Guarantied Obligations when and as the same
shall become due, Guarantors will upon demand pay, or cause to be paid, in cash,
to such Guarantied Party entitled to the Guarantied Obligation, an amount equal
to the aggregate of the unpaid Guarantied Obligations. This obligation is joint
and several, so that each Guarantor will be liable up to the full amount of the
unpaid Guarantied Obligations; provided, however, notwithstanding anything else
in the Guarantee, that in no case shall (1) any Guarantor individually be liable
for an amount in excess of the proceeds such Guarantor has received from the
sale of the Stations (as defined in the Asset Purchase Agreement) which amounts
are agreed to be $360,000, $320,000 and $120,000, for Peter Scalfano, Cheryl
Stewart and Joseph Clements, Jr., respectively and (2) the Guarantors be liable
for an amount in aggregate exceeding $800,000.

               2.   Guarantee Absolute; Continuing Guarantee. The obligations of
Guarantors hereunder are irrevocable, absolute, independent and unconditional
and shall not be affected by any circumstance which constitutes a legal or
equitable discharge of a guarantor or surety other than payment in full of the
Guarantied Obligations. In furtherance of the foregoing and without limiting the
generality thereof, each Guarantor agrees that: (a) this Guarantee is a
Guarantee of payment when due and not of collectibility; (b) any Guarantied
Party may enforce this Guarantee upon the occurrence of an indemnifiable loss or
Damage under the Asset Purchase Agreement notwithstanding the existence of any
dispute between Seller and the Guarantied Party with respect to the existence of
such event; (c) the obligations of each Guarantor hereunder are independent of
the obligations of Seller under the Asset Purchase Agreement and a separate
action or actions may be brought and prosecuted against any or all Guarantors
whether or not any action is brought against Seller or any of such other
guarantors and whether or not Seller is joined in any such action or actions;
and (d) Guarantor's payment of a portion, but not all, of the Guarantied
Obligations shall in no way limit, affect, modify or abridge such Guarantor's
liability for any portion of the Guarantied Obligations that has not been paid.
This Guarantee is a continuing Guarantee and shall be binding upon each
Guarantor and his or her successors and assigns, and each Guarantor irrevocably
waives any right to revoke this Guarantee as to future transactions giving rise
to any Guarantied Obligations.

               3.   Actions by Guarantied Parties. Any or all Guarantied Parties
may from time to time, without notice or demand and without affecting the
validity or enforceability of this Guarantee or giving rise to any limitation,
impairment or discharge of Guarantor's liability hereunder, (a) renew, extend,
accelerate or otherwise change the time, place, manner or terms of payment of
the Guarantied Obligations, (b) settle, compromise, release or discharge, or
accept or refuse any offer of performance with respect to, or substitutions for,
the Guarantied Obligations or any agreement relating thereto and/or subordinate
the payment of the same to the payment of any other obligations, (c) request and
accept other guaranties of the Guarantied Obligations and take and hold security
for the payment of this Guarantee or the Guarantied Obligations, (d) release,
exchange, compromise, subordinate or modify, with or without consideration, any
security for payment of the Guarantied Obligations, any other guaranties of the
Guarantied Obligations, or any other obligation of any person with respect to
the Guarantied Obligations, (e) enforce and apply any security now or hereafter
held by or for the benefit of a Guarantied Party in respect of this Guarantee or
the Guarantied Obligations and direct the order or manner of sale thereof, or
exercise any other right or remedy that a Guarantied Party may have against any
such security, as such Guarantied Party in its discretion may determine
consistent with the Asset

                                   Exhibit D-2

<PAGE>

Purchase Agreement, and (f) exercise any other rights available to the
Guarantied Party under the Asset Purchase Agreement.

               4.   No Discharge. This Guarantee and the obligations of the
Guarantors hereunder shall be valid and enforceable and shall not be subject to
any limitation, impairment or discharge for any reason (other than payment in
full of the Guarantied Obligations), including without limitation the occurrence
of any of the following, whether or not such Guarantor shall have had notice or
knowledge of any of them: (a) any failure to assert or enforce or agreement not
to assert or enforce, or the stay or enjoining, by order of court, by operation
of law or otherwise, of the exercise or enforcement of, any claim or demand or
any right, power or remedy with respect to the Guarantied Obligations or any
agreement relating thereto, or with respect to any other Guarantee of or
security for the payment of the Guarantied Obligations, (b) any waiver or
modification of, or any consent to departure from, any of the terms or
provisions of the Asset Purchase Agreement or any agreement or instrument
executed pursuant thereto, or of any other Guarantee or security for the
Guarantied Obligations, (c) the application of payments received from any source
to the payment of indebtedness other than the Guarantied Obligations, even
though a Guarantied Party might have elected to apply such payment to any part
or all of the Guarantied Obligations, (d) any defenses, set-offs or
counterclaims which Seller may assert against a Guarantied Party in respect of
the Guarantied Obligations, including but not limited to failure of
consideration, breach of warranty, payment, statute of frauds, statute of
limitations, accord and satisfaction and usury, and (e) any other act or thing
or omission, or delay to do any other act or thing, which may or might in any
manner or to any extent vary the risk of a Guarantor as an obligor in respect of
the Guarantied Obligations.

               5.   Waivers. Each Guarantor waives, for the benefit of the
Guarantied Parties: (a) any right to require any Guarantied Party, as a
condition of payment or performance by Guarantor, to (i) proceed against Seller,
the other Guarantors, or any other person, (ii) proceed against or exhaust any
security held from Seller, the other Guarantors or any other person, (iii)
proceed against or have resort to any balance of any deposit account or credit
on the books of such Guarantied Party in favor of Seller or any other person, or
(iv) pursue any other remedy in the power of a Guarantied Party; (b) any defense
arising by reason of the incapacity, lack of authority or any disability or
other defense of Seller including, without limitation, any defense based on or
arising out of the lack of validity or the unenforceability of the Guarantied
Obligations or any agreement or instrument relating thereto or by reason of the
cessation of the liability of Seller from any cause other than payment in full
of the Guarantied Obligations; (c) any defense based upon any statute or rule of
law which provides that the obligation of a surety must be neither larger in
amount nor in other respects more burdensome than that of the principal; (d) any
defense based upon a Guarantied Party's errors or omissions in the
administration of the Guarantied Obligations, except behavior that amounts to
bad faith; (e) (i) any principles or provisions of law, statutory or otherwise,
that are or might be in conflict with the terms of this Guarantee and any legal
or equitable discharge of such Guarantor's obligations hereunder, (ii) the
benefit of any statute of limitations affecting a Guarantor's liability
hereunder or the enforcement hereof, and (iii) any rights to set-offs,
recoupments and counterclaims; (f) notices, demands, presentments, protests,
notices of protest, notices of dishonor and notices of any action or inaction,
including acceptance of this Guarantee, notices of default under the Asset
Purchase Agreement or any agreement or instrument related thereto, notices of
any modification of the Guarantied Obligations or any agreement related thereto,
notices of any extension of credit to Seller and notices of any of the matters
referred to in the

                                   Exhibit D-3

<PAGE>

preceding paragraph and any right to consent to any thereof; (g) to the
fullest extent permitted by law, any defenses or benefits that may be derived
from or afforded by law which limit the liability of or exonerate guarantors or
sureties, or which may conflict with the terms of this Guarantee and (h) each
right to which any of them may be entitled by virtue of the laws of the State of
Texas governing suretyship and guaranties, including, without limitation, any
rights under Rule 31, Texas Rules of Civil Procedure, Section 17.001 of the
Texas Civil Practice and Remedies Code and Chapter 34 of the Texas Business and
Commerce Code, as any or all of the same may be amended or construed from time
to time, or the common law of the State of Texas at all relevant times.

               6.   Guarantor's Rights of Subrogation, Contribution, Etc.;
Subordination of Other Obligations. Each Guarantor waives any claim, right or
remedy, direct or indirect, that such Guarantor now has or may hereafter have
against Seller or any of its assets in connection with this Guarantee or the
performance by Guarantor of his or her obligations hereunder, in each case
whether such claim, right or remedy arises in equity, under contract, by
statute, under common law or otherwise and including without limitation (a) any
right of subrogation, reimbursement or indemnification that a Guarantor now has
or may hereafter have against Seller, (b) any right to enforce, or to
participate in, any claim, right or remedy that a Guarantied Party now has or
may hereafter have against Seller, and (c) any benefit of, and any right to
participate in, any collateral or security now or hereafter held by the
Guarantied Party. Each Guarantor further agrees that, to the extent the waiver
or agreement to withhold the exercise of his or her rights of subrogation,
reimbursement, indemnification and contribution as set forth herein is found by
a court of competent jurisdiction to be void or voidable for any reason, any
rights of subrogation, reimbursement or indemnification Guarantor may have
against Seller or against any collateral or security, shall be junior and
subordinate to any rights any Guarantied Party may have against Seller, to all
right, title and interest any Guarantied Party may have in any such collateral
or security, and to any right any Guarantied Party may have against such other
guarantor.

               Any indebtedness of Seller now or hereafter held by a Guarantor
is subordinated in right of payment to the Guarantied Obligations, and any such
indebtedness of Seller to a Guarantor collected or received by such Guarantor
after an indemnifiable loss for which a Guarantied Party is entitled to
indemnification under the Asset Purchase Agreement has occurred and has not yet
been recovered, and any amount paid to such Guarantor on account of any
subrogation, reimbursement, indemnification or contribution rights referred to
in the preceding paragraph when all Guarantied Obligations have not been paid in
full, shall be held in trust for Guarantied Party and shall forthwith be paid
over to Guarantied Party to be credited and applied against the Guarantied
Obligations.

               7.   Expenses. The Guarantors jointly and severally agree to pay,
or cause to be paid, on demand, and to save each and every Guarantied Party
harmless against liability for, any and all costs and expenses (including fees
and disbursements of counsel and allocated costs of internal counsel) incurred
or expended by such Guarantied Party in connection with the enforcement of or
preservation of any rights under this Guarantee.

               8.   Amendments and Waivers. No amendment, modification,
termination or waiver of any provision of this Guarantee, and no consent to any
departure by Guarantor therefrom, shall in any event be effective without the
written concurrence of each and all

                                   Exhibit D-4

<PAGE>

Guarantied Parties and, in the case of any such amendment or modification, each
and all Guarantors. Any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it was given.

               9.   Miscellaneous. It is not necessary for a Guarantied Party to
inquire into the capacity or powers of any Guarantor or Seller or the officers,
directors or any agents acting or purporting to act on behalf of any of them.

               The rights, powers and remedies given to the Guarantied Party by
this Guarantee are cumulative and shall be in addition to and independent of all
rights, powers and remedies given to the Guarantied Party by virtue of any
statute or rule of law or in the Asset Purchase Agreement. Any forbearance or
failure to exercise, and any delay by a Guarantied Party in exercising, any
right, power or remedy hereunder shall not impair any such right, power or
remedy or be construed to be a waiver thereof, nor shall it preclude the further
exercise of any such right, power or remedy.

               In case any provision in or obligation under this Guarantee shall
be invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

               THIS GUARANTEE AND THE RIGHTS AND OBLIGATIONS OF THE GUARANTORS
AND THE GUARANTIED PARTIES SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF TEXAS, WITHOUT
REGARD TO CONFLICTS OF LAWS PRINCIPLES.

               This Guarantee shall inure to the benefit of each Guarantied
Party and their successors and assigns.

               ANY DISPUTE, CONTROVERSY OR OTHER MATTERS AS TO WHICH THE PARTIES
DISAGREE ARISING OUT OF, RELATING TO OR IN CONNECTION WITH THE PROVISIONS OF
THIS AGREEMENT OR THE INTERPRETATION, BREACH OR ALLEGED BREACH HEREOF SHALL BE
SETTLED AND DECIDED BY ARBITRATION CONDUCTED BY THE JUDICIAL ARBITRATION AND
MEDIATION SERVICE ("JAMS"), SUBJECT TO THE FOLLOWING:

               (a)  Any arbitration as set forth above shall be held and
conducted in Houston, Texas before one arbitrator who shall be selected by
mutual agreement of the parties. If agreement is not reached on the selection of
the arbitrator within 30 days after commencement of an arbitration by (i)
submission of a matter to the JAMS in accordance with its Commercial Arbitration
Rules and (ii) notice to the other party of the initiating party's intention to
arbitrate, then such arbitrator shall be appointed by the presiding judge of the
appropriate United States Court for the Northern District of Texas.

               (b)  The arbitrator appointed must be a former or retired judge,
or an attorney with at least 15 years experience in the broadcast radio
industry.

                                   Exhibit D-5

<PAGE>

               (c)  All proceedings involving the parties shall be reported by a
certified shorthand court reporter and written transcripts of the proceedings
shall be prepared and made available to the parties.

               (d)  The prevailing party shall be awarded reasonable attorneys'
fees, expert and non-expert witness costs and expenses, and other costs and
expenses incurred in connection with the arbitration unless the arbitrator, for
good cause, determines otherwise.

               (e)  The dispute shall be heard in accordance with the rules and
procedures of JAMS and the arbitrator's decision and award shall be final and
binding.

               (f)  Costs and fees of the arbitrator (including the cost of the
record of transcripts of the arbitration) shall be borne by the non-prevailing
party, unless the arbitrator for good cause determines otherwise. Costs and fees
payable in advance shall be advanced equally by the parties, subject to ultimate
payment by the non-prevailing party in accordance with the preceding sentence.

               (g)  Any Guarantied Party or any Guarantor may initiate an
arbitration proceeding under this Section 9 by written notice to the other party
of his, her or its intention to arbitrate, specifying the dispute or controversy
to be arbitrated, the amount involved and the remedy sought, and by filing with
the Dallas, Texas office of the JAMS a copy of said notice together with a copy
of this Guarantee and the fee specified in the JAMS fee schedule. In no event
shall a demand for arbitration be made after the date when institution of legal
or equitable proceedings based on the claim, dispute or other matter in question
would be barred by the applicable statute of limitations.

               (h)  This agreement to arbitrate shall be specifically
enforceable under applicable law in any court of competent jurisdiction. The
award rendered by the arbitrator shall be final and judgment may be entered in
accordance with applicable law and in any court having jurisdiction thereof.

               (i)  Notwithstanding anything contained in this Guarantee
elsewhere to the contrary, and unless modified by the arbitrator upon a showing
of good cause, the arbitration shall proceed upon the following schedule: (i)
within 30 days from the service of the notice of the request to arbitrate, the
parties shall select the arbitrator; (ii) within 30 days after selection of the
arbitrator, the parties shall conduct a pre-arbitration conference at which a
schedule of pre-arbitration discovery shall be set, all pre-arbitration motions
scheduled and any other necessary pre-arbitration matters decided; (iii) all
discovery shall be completed within four months following the pre-arbitration
conference; (iv) all pre-arbitration motions shall be filed and briefed so that
they may be heard no later than one month following the discovery cut-off; (v)
the arbitration shall be scheduled to commence no later than 30 days after the
decision on all pre-arbitration motions but in any event no later than six
months following the service of the notice of arbitration; and (vi) the
arbitrator shall render his written decision within 30 days following the
submission of the matter.

               (j)  Any monetary award of the arbitrator may include interest at
the highest prime rate, as published in the Wall Street Journal, plus two
percent but in no event shall the total interest exceed the maximum amount
allowed by Texas law, which interest shall accrue from the

                                   Exhibit D-6

<PAGE>

date the claim, dispute or other matter in question was rightfully due and
payable under this Guarantee until the date the award is paid to the prevailing
party.

               (k)  No provision of this Section 9 shall limit the right of any
Guarantied Party or any Guarantor to exercise self-help remedies or to obtain
provisional or ancillary remedies from a court of competent jurisdiction before,
after, or during the pendency of any arbitration or other proceeding. The
exercise of such remedy does not waive the right of any party to resort to
arbitration.

               EACH GUARANTOR AND, BY ITS ACCEPTANCE OF THE BENEFITS HEREOF,
GUARANTIED PARTY EACH AGREES TO WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS GUARANTEE AND INSTEAD
AGREES TO ARBITRATION AS SET FORTH ABOVE. The scope of this waiver is intended
to be all-encompassing of any and all disputes that may be filed in any court
and that relate to the subject matter of this transaction, including without
limitation contract claims, tort claims, breach of duty claims and all other
common law and statutory claims. The Guarantors and, by its acceptance of the
benefits hereof, all Guarantied Parties (i) acknowledge that the Guarantors and
the Guarantied Parties have already relied on this waiver in entering into this
Guarantee or accepting the benefits thereof, as the case may be, and that each
will continue to rely on this waiver in their related future dealings, and (ii)
further warrant and represent for itself that it has reviewed this waiver with
its legal counsel and that each knowingly and voluntarily waives its rights
following consultation with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING
THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS OF
THIS GUARANTEE.

                  [remainder of page intentionally left blank]

                                   Exhibit D-7

<PAGE>

               IN WITNESS WHEREOF, Guarantors have executed this Guarantee as of
the date first written above.

                                     ________________________________________
                                     Cheryl Stewart

                    Home Address:    ____________________________
                                     ____________________________
                                     ____________________________

                                     ________________________________________
                                     Peter Scalfano

                    Home Address:    ____________________________
                                     ____________________________
                                     ____________________________

                                     ________________________________________
                                     Joseph Clements, Jr.

                    Home Address:    ____________________________
                                     ____________________________
                                     ____________________________

                                   Exhibit D-8

<PAGE>

                                    EXHIBIT E

                            FORM OF LESSOR ESTOPPELS

           SEE FOLLOWING PAGES WHICH CONTAIN THE FOLLOWING DOCUMENTS:

CONFIRMATION OF LEASE TERMS AND CONSENT (Studio Location, Highway 35 East - Bay
City, Matagorda County, Texas)

CONFIRMATION OF LEASE TERMS AND CONSENT (STL Location - Matagorda County, Texas)

CONFIRMATION OF LEASE TERMS AND CONSENT (Tower Lease - Collegeport, Matagorda
County, Texas) with Stanley

CONFIRMATION OF LEASE TERMS AND CONSENT (Tower Lease - Collegeport, Matagorda
County, Texas) with Tiner

                                   Exhibit E-1

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