Document:

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                                                                   EXHIBIT 10.29

                                 LEASE AGREEMENT

         THIS LEASE AGREEMENT (this "Lease") is made and entered into between
SPALDING TRIANGLE, L.L.C., a Georgia limited liability company (hereinafter
referred to as "Landlord") and SEROLOGICALS CORPORATION, a Delaware corporation
(hereinafter referred to as "Tenant"):

WITNESSETH:

         1.       LEASED PREMISES.

         In consideration of the rents, terms, provisions and covenants of this
Lease, Landlord hereby leases lets and demises to Tenant and Tenant hereby
leases and takes, the following described premises (herein referred to as the "
Premises"): that certain office building, excluding the roof thereof, located at
5655 Spalding Drive, Norcross, Georgia (herein sometimes referred to as the
"Building"), containing approximately 49,720 square feet of rentable area. The
Building is a part of the three-building project commonly known as Spalding
Triangle Phase I (the land and the improvements of said three-building project
which are generally located at 3770 Data Drive, 3790 Data Drive, and 5655
Spalding Drive, are herein sometimes collectively referred to as the "Project").
A floor plan of the interior of the Premises is attached hereto as Exhibit "A".
Tenant shall have no right of access to, and no right to utilize or install any
machinery, signs or equipment upon, the roof of the Building for any purpose
without the prior written consent of Landlord in Landlord's sole discretion.
Upon and subject to the provisions of Section 9 below and Section 10 of Exhibit
"C" attached hereto, Tenant is granted access to the roof of the Building for
purposes of maintaining, repairing and replacing the air conditioning units
servicing the Premises and for installing and using a satellite dish. Landlord
and Tenant agree that the Premises consist of 49,720 square feet of rentable
area regardless of the actual number of square feet of rentable area, and
neither Landlord nor Tenant shall have the right to demand a change in the rent
or terms of this Lease based on any remeasurement of the Premises, change in
commonly-used measurement standards, or otherwise. In addition to the interest
in the Premises demised to Tenant under this Lease, Landlord hereby grants
Tenant a nonexclusive license for so long as this Lease is in full force and
effect to use the "Common Areas", hereinafter defined, of the Project in common
with others entitled to use the Common Areas, including Landlord and other
tenants of the Project and their respective employees and invitees and other
persons authorized by Landlord, subject to the terms and conditions of this
Lease (including, without limitation, subject to the provisions of Section 6 of
Exhibit "C" attached hereto), including any and all rules and regulations
promulgated by Landlord in accordance with the terms of this Lease. As used
herein, the term "Common Areas" means all areas and facilities in the Project
that are provided and designated from time to time by Landlord for the general
nonexclusive use and convenience of Landlord, Tenant, and all other tenants of
the Project and their respective employees, invitees, licensees, or other
visitors, and may include, without limitation, the driveways and loading areas
of the Building, and the walkways, parking and landscaped areas of the Project.
Landlord may from time to time change the size, use, shape, configuration or
nature of any portion of the Common Areas, so long as such change does not
materially deprive Tenant of the benefit and enjoyment of the Premises. Neither
Landlord nor Landlord's agents have made any representations, warranties or
promises with respect to the Project, the physical condition of the Building,
the land upon which it is erected, or the Premises, or any matter or thing
affecting or related to the Premises except as expressly and specifically set
forth in this Lease. Subject to the other terms and conditions of this Lease,
Landlord grants Tenant access to the Premises twenty-four (24) hours per day
commencing on the Commencement Date.

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         2.       TERM.

         Subject to and upon the conditions set forth below, the term of this
Lease shall be for one hundred twenty-two (122) months, and shall commence at
12:01 A.M. on January 1, 2001 (the "Commencement Date"); provided, however, if
Landlord is unable to deliver the Premises to Tenant with the Initial
Improvements (as defined in Exhibit B) substantially completed on or before
January 1, 2001 for any reason other than Tenant Delay (as defined herein), then
the Commencement Date shall be delayed until the date on which the Initial
Improvements are substantially complete, and the term of this Lease shall end at
midnight on the last day of the 122nd full calendar month following the
Commencement Date, unless sooner terminated as hereinafter provided (herein
called the "Lease Term" or the "Term"). If the Commencement Date does not occur
on or before March 1, 2001, for any reason other than Tenant Delay or Force
Majeure Delay (as defined herein), Landlord shall grant to Tenant as a credit
against Base Rent, as liquidated damages, the amount of $1,000.00 for each day
between March 1, 2001 and the date the Premises are delivered to Tenant by
Landlord with the Initial Improvements therein substantially completed. The
total amount of such liquidated damages shall be applied against the Base Rent
first accruing under this Lease. Any such liquidated damages shall be in
addition to the delay in the Commencement Date. Landlord's grant of such
liquidated damages to Tenant pursuant to this paragraph shall be Tenant's sole
remedy against Landlord as a result of such delay in the Commencement Date and
Tenant shall have no right to terminate this Lease as a result of such delay
except as otherwise expressly and specifically provided in the immediately
following sentence. If the Commencement Date does not occur on or before June 1,
2001, for any reason other than Tenant Delay or Force Majeure Delay, Tenant
shall have the right to terminate this Lease by giving Landlord written notice
of termination on or before the date on which the Initial Improvements are
substantially complete, and Landlord and Tenant shall thereupon be released from
all obligations under this Lease; provided, however, if the Initial Improvements
shall have been substantially completed on or before the date which is ten (10)
days after Landlord's receipt of such notice, then such termination notice shall
be deemed null and void and this Lease shall remain in full force and effect.

         3.       BASE RENT

         (a)      Throughout the full Term of this Lease, Tenant hereby agrees
to pay to Landlord a base annual rental (herein referred to as "Base Rent") in
accordance with the following Base Rent Schedule:

                      Base Rent Schedule (All U.S. Dollars)

<TABLE>
<CAPTION>

              Period                         Base Rent per Annum             Base Rent per Month
              ------                         -------------------             -------------------
<S>                                          <C>                             <C>
Commencement Date - 12/31/2001                   $534,490.00                      $44,540.83
     1/01/2002 - 12/31/2002                      $550,524.70                      $45,877.06
     1/01/2003 - 12/31/2003                      $567,040.44                      $47,253.37
     1/01/2004 - 12/31/2004                      $584,051.65                      $48,670.97
     1/01/2005 - 12/31/2005                      $601,573.20                      $50,131.10
     1/01/2006 - 12/31/2006                      $619,620.40                      $51,635.03
     1/01/2007 - 12/31/2007                      $638,209.01                      $53,184.08
     1/01/2008 - 12/31/2008                      $657,355.28                      $54,779.61
     1/01/2009 - 12/31/2009                      $677,075.94                      $56,423.00
     1/01/2010 - 12/31/2010                      $697,388.22                      $58,115.69
     1/01/2011 - End of initial Lease Term       $718,309.87                      $59,859.16
</TABLE>

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The Base Rent shall be due and payable on the first day of each calendar month
during the initial Lease Term and any extensions or renewals hereof, and Tenant
hereby agrees to so pay such rent and all other rental hereunder to Landlord at
c/o ELV Associates, Inc., P.O. Box 84-5028, Boston, MA 02284-5028 (or such other
address as may be designated by Landlord from time to time) monthly in advance
without deduction, setoff, or prior demand. A prorated monthly installment,
based on a thirty (30) day month, shall be paid in advance of any fraction of a
month if the Lease Term shall begin on any date except the first day or shall be
terminated on any date except the first day or shall be terminated on any date
except the last day of any month. At all times that Landlord shall direct Tenant
to pay Base Rent or Additional Rent to a "lockbox" or other depository whereby
checks issued in payment of rental are initially cashed or deposited by a person
or entity other than Landlord (albeit on Landlord's authority), then, for any
and all purposes under this Lease, in the event Landlord contends Tenant is in
default under this Lease or Tenant tenders less than the full amount of Base
Rent or Additional Rent due Landlord upon any payment to Landlord, then: (i)
Landlord shall not be deemed to have accepted such payment until ten (10) days
after the date on which Landlord shall have actually received such funds, and
(ii) Landlord shall be deemed to have accepted such payment if (and only if)
within said ten (10) day period, Landlord shall not have refunded (or attempted
to refund) such payment to Tenant. Nothing contained in the immediately
preceding sentence shall be construed to place Tenant in default of Tenant's
obligation to pay rent, or to require Tenant to pay any late charge or default
interest, if and for so long as Tenant shall timely pay the rent required
pursuant to this Lease in the manner designated by Landlord.

         Notwithstanding the foregoing to the contrary, the payment of Base Rent
described in this subsection 3(a) above shall be excused during the first sixty
(60) days of the initial Lease Term (although Base Rent shall continue to accrue
during such period). However, if Tenant defaults under this Lease beyond any
applicable period of notice and cure with respect to any monetary or material
non-monetary obligation of Tenant under this Lease, any remaining excused Base
Rent shall cease from the date of such default. Except for the sixty (60) days
of Base Rent which may be excused pursuant to the provisions of this subsection
3(a), no other Base Rent or Additional Rent payable by Tenant under this Lease
shall be excused or abated, and without limiting the generality of the
foregoing, no Base Rent shall be excused during any Renewal Term.

         (b)      [Intentionally Omitted].

         (c)      Other remedies for nonpayment of rent notwithstanding, if the
monthly Base Rent payment or any other rental due hereunder is not received by
Landlord on or before the tenth day of the month for which rent is due, a
service charge of five percent (5%) per month of all past due amounts owed on
such date shall become due and payable in addition to the regular rent owed
under this Lease and shall be treated as Additional Rent.

         (d)      In the event Tenant owes any sums to Landlord pursuant to the
terms of this Lease, and the same are not timely paid within applicable notice
and cure periods, Tenant agrees that such sums shall accrue interest until paid
at the Prime Rate plus four percent (4%) per annum (herein referred to as the
"Default Rate"). As used herein, the term "Prime Rate" means the prime rate of
interest published in the Money Rates Table in the Wall Street Journal, or if
unavailable in the Wall Street Journal, as published in the Money Rates Table in
the New York Times, or if unavailable in the New York Times, the prime rate of
interest announced publicly from time to time by Citibank, N.A., New York, New
York, or its successor, or should Citibank, N.A., or its successor, abolish or
abandon the practice of publishing its prime rate at any time during the Term,
then Landlord and Tenant shall mutually agree upon a comparable reference rate
which shall be deemed to be the Prime Rate hereunder.

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4.       ADDITIONAL RENT OPERATING EXPENSES.

         All sums other than the Base Rent due hereunder shall constitute
"Additional Rent" including without limitation:

         (a)      Taxes.

                  (i) During the Lease Term, Tenant shall pay to Landlord, as
Additional Rent, Tenant's Share (as such term is hereinafter defined) of taxes
and assessments (as hereinafter defined) for the Project (the "Tax Charges").
The term "taxes and assessments" shall include all real estate taxes,
assessments, sewer rents and water charges, governmental levies, municipal
taxes, county taxes or any other governmental charge, general or special,
ordinary or extraordinary, unforseen as well as foreseen, of any kind or nature
whatsoever, which may be assessed, levied or imposed upon all or any part of the
Project and the sidewalks, plazas or streets in front of or adjacent thereto,
and levied against Landlord and/or the Project and/or the real estate upon which
the Project is located, or upon the operation of the Project, or any part
thereof, under the laws of the United States, the State of Georgia, or any
political subdivision thereof, or the County of Gwinnett, or any political
subdivision thereof, and any charge by any business improvement district. Taxes
shall not include any penalties or interest imposed upon Landlord in connection
with the late payment thereof. Currently there are no tax exemptions or
abatements in effect affecting the taxes and assessments. Reasonable fees and
expenses incurred by Landlord in obtaining or attempting to obtain a reduction
of or in the contest of any taxes or assessments shall be added to and included
in the amount of taxes and assessments. The term "taxes and assessments" shall,
notwithstanding anything to the contrary contained herein, exclude any net
income, sales, transfer or "value added" tax, inheritance tax or estate tax
imposed or constituting a lien upon Landlord or all or any part of the Project,
except to the extent that any of the foregoing are hereafter assessed against
owners or lessees of real property in their capacity as such (as opposed to any
such taxes which are of general applicability). The term "taxes and assessments"
shall also exclude any taxes are separately and specifically assessed against
any above building-standard leasehold improvements in another tenant's leased
premises at the Project. Further, notwithstanding anything to the contrary
contained herein, the term "taxes and assessments" shall in no event include
charges for steam, gas, electricity or other utilities.

                  (ii) If at any time during the Term of this Lease, the present
method of taxation shall be changed so that in lieu of the whole or any part of
any taxes, assessments of governmental charges levied, assessed, or imposed on
real estate and the improvements thereon, there shall be levied, assessed or
imposed on Landlord a capital levy or other tax directly on the rents received
therefrom and/or a franchise tax, assessment, levy or charge measured by or
based, in whole or in part, upon such rents for the present or any future
building or buildings on the Premises, then all such taxes, assessments, levies
or charges, or the part thereof so measured or based, shall be deemed to be
included within the term "taxes and assessments" for the purposes hereof.

                  (iii) Tenant shall pay, or cause to be paid, before
delinquency, any and all taxes levied or assessed during the Term of this Lease
upon all improvements installed by Tenant in the Premises (expressly excluding
the Initial Improvements), Tenant's other leasehold improvements, equipment,
furniture, fixtures and any other personal property located on the Premises. In
the event any or all of said improvements, Tenant's other leasehold
improvements, equipment, furniture, fixtures and other personal property shall
be assessed and taxed with the Premises or the Project, Tenant shall pay to
Landlord its share of such taxes within ten (10) calendar days after delivery to
Tenant by Landlord of a statement in writing setting forth the amount of such
taxes attributable to the above property.

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                  (iv) Landlord shall provide Tenant with a copy of the annual
tax bill(s) for the Project promptly upon Landlord's receipt of the same from
the applicable taxing authority each year during the Term of this Lease. For so
long as Tenant leases all of the rentable square feet in the Building, Tenant
shall have the right, upon written notice to Landlord, to require Landlord to
contest the validity and/or amount of any taxes and assessments, provided that
(x) Tenant agrees (and Tenant hereby so covenants and agrees) to indemnify and
hold Landlord harmless from and against any and all loss, cost and expense
(including reasonable attorneys' fees) incurred by Landlord in connection with
such proceedings, and (y) in the event any such taxes or assessments on all or
any part of the Project are increased as a result of such contest, Tenant shall
pay the entire amount of any such increase in taxes and assessments on the
Project to Landlord within ten (10) days of Tenant's receipt of written demand
therefor. Notwithstanding the foregoing, in the event any other tenant in the
Project has the right to contest taxes and assessments with respect to all or a
portion of the Project and taxes and assessments are increased as a direct
result of such contest maintained by another tenant in the Project, Tenant's
share of taxes and assessments on the Project shall not include any portion of
such increase in taxes and assessments.

         (b)      Insurance. During the Term of this Lease, Tenant shall pay to
Landlord, as Additional Rent, Tenant's Share of insurance (as hereinafter
defined) for the Project (the "Insurance Charges"). The term "insurance" shall
include all fire and extended casualty insurance on the Project and all
liability coverage on the grounds, sidewalks, driveways, parking areas, and any
other exterior or interior areas of the Project, together with such other
insurance protections, including, but not limited to, rents insurance (not
exceeding twelve (12) months), as are from time to time obtained by Landlord.
The term "insurance" shall also include any deductible amount paid by Landlord
in connection with any insured loss.

         (c)      CAM. During the Term of this Lease, Tenant shall pay to
Landlord, as Additional Rent, Tenant's Share of all direct costs of managing,
operating and maintaining the Project, the Common Areas and any appurtenances
thereto (the "CAM Charges"), including, without limitation, all Common Area
electrical, grounds maintenance charges, security services and other common area
charges and expenses for the Project, as provided in subsection (d) below. The
term "grounds maintenance" shall include, without limitation, all landscaping,
planting, lawn and grounds care, all repairs, maintenance, replacements and
improvements to the grounds and other common areas adjacent to the Premises and
to all Common Areas, including without limitation all sidewalks, driveways,
loading areas and parking areas. The term "CAM Charges," as used and defined
under this Lease, shall not, however, include the following items:

         (1)      interest on and amortization of debts (except interest on and
                  amortization of capital items permitted pursuant to Section
                  4(d) hereinbelow);

         (2)      the cost of tenant improvements made for new or existing
                  tenant(s) of the Project;

         (3)      brokerage commissions;

         (4)      financing or refinancing costs (except financing costs of
                  capital items permitted pursuant to Section 4(d) hereinbelow);

         (5)      the cost of any work or services performed for any tenant of
                  the Project, whether at the expense of Landlord or such
                  tenant, to the extent that such work or services are in excess
                  of the work or services which Landlord is required to furnish
                  or is furnishing to Tenant under this Lease;

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<PAGE>   6

         (6)      taxes and assessments as defined in Section 4(a) above (or any
                  item of taxes and assessments specifically excluded from the
                  definition of taxes and assessments);

         (7)      the cost of any repairs made by Landlord to remedy damage to
                  the extent caused by or resulting from the gross negligence of
                  Landlord, its agents, servants or employees;

         (8)      legal or brokerage or finder's fees or other fees, leasing
                  commissions, advertising expenses and other costs incurred in
                  leasing or attempting to lease any portion of the Project or
                  in connection with rent defaults by present or prior tenants
                  or in connection with placing or refinancing any mortgages on
                  the Project;

         (9)      any funds or money given to any tenants in cash, by offset or
                  otherwise, or the cost of any work done for any tenants in
                  connection with the leasing of space in the Project;

         (10)     the cost of any items to the extent Landlord is reimbursed by
                  insurance, or otherwise compensated, including direct
                  reimbursement by any tenant for specific services performed
                  for such tenant (other than under CAM Charges and Insurance
                  reimbursement provisions of its lease);

         (11)     that portion of any cost paid to a corporation or other entity
                  affiliated with Landlord (i.e., controlling, controlled by or
                  under common control with Landlord) which is in excess of the
                  amount which would be paid in the absence of such
                  relationship;

         (12)     except with respect to capital items permitted pursuant to
                  Section 4(d) hereinbelow, financing and refinancing costs in
                  respect of any indebtedness of Landlord, whether secured or
                  unsecured, including, legal and accounting fees and expenses,
                  prepayment penalties and interest and amortization payments in
                  connection therewith;

         (13)     rent and additional rent under any ground or underlying lease;

         (14)     franchise, gross receipts, unincorporated business,
                  inheritance, foreign ownership or control or income taxes
                  imposed upon Landlord or any taxes similar to the foregoing
                  excluded items (other than sales taxes on items or services
                  otherwise includable in CAM Charges);

         (15)     costs incurred in connection with the transfer or disposition
                  of direct or indirect ownership interests in the Project or
                  Landlord;

         (16)     the costs of repairs or restoration necessitated by
                  condemnation;

         (17)     costs incurred in connection with the enforcement of leases or
                  resolution of disputes with tenants (other than such costs
                  relating to the enforcement of anti-nuisance or similar
                  provisions in leases), including, without limitation, court
                  costs, attorneys' fees and disbursements in connection with
                  any summary proceedings to dispossess any tenant;

         (18)     fines, judgments or awards against Landlord based on
                  Landlord's gross negligence, willful misconduct or criminal
                  acts;

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         (19)     general overhead of Landlord's or Landlord's managing agent's
                  office;

         (20)     costs resulting from Landlord's default under any lease,
                  except to the extent such costs represent the costs of
                  maintenance, repairs or other items otherwise includable in
                  CAM Charges;

         (21)     compensation of clerks, attendants or other persons in
                  concessions serving the public and operated by Landlord or the
                  managing agent (such as shoeshine, newsstand, etc.);

         (22)     costs for purchasing works of fine art;

         (23)     items to the extent actually reimbursed to Landlord pursuant
                  to any warranties or guarantees; and

         (24)     management fees in excess of four percent (4%) of the rent of
                  the Project.

         (d)      Capital Expenditures /Mandated Alterations.

                  If, for any reason, including imposition of governmental
requirements, laws or regulations, Landlord shall expend monies directly or
indirectly which are intended to reduce the energy consumption of the Project
and which, by generally accepted accounting principles are treated as capital
expenditures, the annual CAM Charges of the Project shall also include the
amortization of such capital expenditures based upon a useful life acceptable to
the appropriate taxing authority provided Tenant receives the benefit of such
reduced consumption by way of a percentage reduction in Tenant's monthly prorata
share of CAM Charges. In the event that any local, state or federal government
shall, by any legally enforceable legislative, administrative or judicial
action, whether by ordinance, act, statute, order, mandate, rule, regulation or
otherwise, require during the Term of this Lease any alteration of or
improvement to any portion of the Project, excluding the Premises (a "Mandated
Alteration"), which, by generally accepted accounting principles would be
treated as a capital expenditure, then, provided that such Mandated Alteration
is the result of the adoption of a new or changed ordinance, act, statute,
order, mandate, rule or regulation or interpretation thereof not existing on the
Commencement Date of this Lease, the annual CAM Charges shall also include the
annual amortization of such capital expenditure based upon a useful life of not
less than five (5) years; provided however, that in no event shall the annual
Additional Rent assessed to Tenant that is attributable to such Mandated
Alteration exceed twenty cents ($.20) multiplied by the rentable square footage
of the Premises. To avoid any doubt, Landlord will not double charge Tenant for
any cost permitted to be passed through to Tenant under Section 4(c) above and
under this Section 4(d).

         (e)      Estimated Payments.

                  (i) Prior to the Commencement Date and prior to January 1 of
each subsequent calendar year during the Term of this Lease, or as soon
thereafter as possible, Landlord shall deliver to Tenant an estimate of (A) the
Tax Charges for that calendar year (the "Tax Estimate"), (B) the Insurance
Charges for that calendar year (the "Insurance Estimate"), and (C) the total CAM
Charges for that calendar year (the "CAM Estimate") and Tenant's Share thereof.
Landlord shall use commercially reasonable efforts to deliver such estimate to
Tenant by no later than April 1 of each year during the Term. The Tax Estimate,
the Insurance Estimate and the CAM Estimate are sometimes referred to
hereinafter collectively as the "Common Cost Estimates". The initial Common Cost
Estimates for calendar year 2000 is $1.41 per rentable square foot of the
Premises. The Common Cost Estimates for any subsequent calendar year shall not
exceed 103% of the Common Cost Estimates for the immediately

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preceding calendar year, on an aggregate basis (as opposed to a line-by-line or
component basis), unless there is a reason for a greater percentage increase and
Landlord provides Tenant with information relating thereto. The preceding
sentence is not intended and shall not be construed to limit or cap in any way
the amount of Additional Rent which may become due and payable pursuant to the
provisions of subsection 4(e)(ii) below. Tenant shall thereafter during that
calendar year pay to Landlord one-twelfth (1/12) of the amount of Tenant's Share
of the Common Cost Estimates at the same time its monthly installments of Base
Rent hereunder are due and payable. In the event Landlord shall not have
furnished the Common Cost Estimates to Tenant by January 1 of any calendar year,
then until the first day of the second month next following the month in which
the Common Cost Estimates are furnished to Tenant, Tenant shall pay to Landlord
on the first day of each calendar month an amount equal to the aggregate monthly
installment of Tenant's Share of the Tax Charges, Insurance Charges and CAM
Charges which was payable by Tenant to Landlord with respect to the last month
of the preceding calendar year. In such event, at such time as Landlord
furnishes the Common Cost Estimates to Tenant, Landlord shall give Tenant notice
stating whether the aggregate amount of the installments of Tenant's Share of
the Tax Charges, Insurance Charges and CAM Charges previously paid for such
calendar year is more or less than the aggregate amount of the installments due
for such portion of the calendar year as computed in accordance with the Common
Cost Estimates, and (A) if there shall be a deficiency, then within thirty (30)
days after the Tenant receives the Common Cost Estimates, Tenant shall pay the
amount of such deficiency, (B) if there shall have been an overpayment, Landlord
shall credit Tenant in the amount thereof toward the subsequent installments of
the Tax Charges, Insurance Charges and CAM Charges, and (C) on the first day of
the second month next following the month in which the Common Cost Estimates are
furnished to Tenant, and monthly thereafter for the balance of such calendar
year, Tenant shall pay to Landlord one-twelfth (1/12) of the amount of Tenant's
Share of the Tax Charges, Insurance Charges and CAM Charges as set forth in the
Common Cost Estimates.

                  (ii) At such time as Landlord is able to determine the actual
Tax Charges, Insurance Charges and CAM Charges for each calendar year, Landlord
shall deliver to Tenant a statement thereof (including a break down of the
charges) and, in the event the estimated Tax Charges, Insurance Charges and CAM
Charges differ from the actual Tax Charges, Insurance Charges and CAM Charges,
then (A) if there shall be a deficiency, then within thirty (30) days after
Tenant receives the statement of the actual Tax Charges, Insurance Charges and
CAM Charges, Tenant shall pay the amount of such deficiency, and (B) if there
shall have been an overpayment, Landlord shall credit Tenant in the amount
thereof toward the subsequent installments of the Tax Charges, Insurance Charges
and CAM Charges coming due in the next calendar year. Landlord shall use
commercially reasonable efforts to deliver such statement to Tenant by no later
than April 1 of each year during the Term commencing in calendar year 2002, but
Landlord's failure to deliver any such statement to Tenant by April 1 of any
calendar year shall not affect Tenant's obligation to pay the amount of any such
deficiency. If such statement is not delivered to Tenant by April 1 of any
calendar year and if Tenant shall have made an overpayment requiring a credit as
provided in (B) above, then, in those events, there shall be added to such
credit interest at the Default Rate from April 1 to the date on which such
statement is delivered to Tenant. If such statement with respect to any calendar
year of the Term is not delivered to Tenant on or before the date which is two
(2) years after the end of the Term, then Tenant shall not be responsible for
any deficiency described in (A) above which is applicable to the calendar year
for which Tenant has not received such statement.

         (f)      "Tenant's Share", as used herein, shall mean the number,
stated as a percentage, determined by dividing the rentable square footage of
the Premises as stated in Section 1 by the number rentable square feet in the
improvements in the Project. Landlord represents and warrants that as of the
date of this Lease, the Project contains approximately 91,213 square feet of
rentable area; therefore, the parties

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thereto stipulate and agree that the initial Tenant's Share shall be 54.51%. In
the event of any change in the area (in rentable square feet) of the Premises or
the Project, Tenant's Share shall be adjusted to reflect such change on a
prorated, daily basis. Without limiting the generality of the foregoing, if the
physical size of the rentable area of the improvements in the Project increases,
then Tenant's Share shall be adjusted to reflect such change in accordance with
the foregoing formula.

         (g)      Any payment to be made pursuant to this Section 4 with respect
to the calendar year in which this Lease commences or terminates shall be
prorated.

         (h)      Subject to the terms and conditions in this paragraph, Tenant
shall have the right to cause an audit of Landlord's books and records for the
purpose of determining the accuracy of the CAM Charges charged to Tenant and
Landlord's compliance with this Lease with respect thereto. In addition, from
time to time upon demand of Tenant, Landlord shall provide Tenant with
reasonably satisfactory backup documentation as to applicable costs and
expenses. Tenant and a commercially recognized certified public accounting firm
shall have the right to inspect and/or audit Landlord's records at Landlord's
office upon at least ten (10) days' prior notice during normal business hours
during the one hundred eighty (180) days following the respective delivery of
Landlord's annual statement of actual CAM Charges for the preceding calendar
year. Tenant agrees that such inspection and/or audit shall be conducted in a
manner designed not to unreasonably interfere with the conduct of Landlord's
business. The inspection and/or audit shall be limited to that portion of
Landlord's books and records pertaining only to the CAM Charges for the
preceding calendar year, unless the inspection and/or audit proves that
Landlord's calculation of CAM Charges was in error, in which case Tenant shall
have the right to inspect and/or audit Landlord's books and records for prior
years pertaining only to such erroneous component of CAM Charges. Tenant and
such certified public accountant must agree, in their contract for such
services, to such confidentiality restrictions and shall specifically agree that
the results shall not be made available to any other tenant of the Project. The
results of any such inspection and/or audit shall be kept confidential by Tenant
and its officers and employees (except for such disclosures required by law or
in connection with any arbitration with Landlord as provided in this paragraph
below). Unless Tenant sends to Landlord any written exception to Landlord's
annual report within said one hundred eighty (180) day period, along with a
written copy of Tenant's audit results, such report shall be deemed final and
accepted by Tenant. Tenant shall pay the amount shown on Landlord's annual
statement of actual CAM Charges in the manner prescribed in this Lease, whether
or not Tenant takes any such written exception, without any prejudice to such
exception. If Tenant makes a timely exception, Landlord may cause its
independent certified public accountant or shall select and cause another firm
with at least five (5) years of experience in auditing the books and records of
commercial office projects to issue a report in response to Tenant's exception.
Any dispute between Landlord and Tenant with respect to CAM Charges arising by
reason of Tenant's audit shall be determined by arbitration by a panel of three
arbitrators in accordance with the then current rules and regulations for
commercial matters of the American Arbitration Association or its successor
(hereinafter referred to as the "AAA"). The determination of the arbitrators
shall be final, binding and conclusive on Landlord and Tenant, and judgment may
be rendered thereon by any court having jurisdiction, upon application of either
Landlord or Tenant. Each party shall have the right to select one of the
arbitrators, and the third arbitrator, who shall be a competent and impartial
person with at least ten (10) years' experience in office management accounting
in the metropolitan Atlanta area, shall be selected by the other two arbitrators
or, failing agreement by them, the AAA. The fees and expenses of the arbitrators
under this subsection shall be borne equally by both parties.

                                       9
<PAGE>   10

         5.       SIGNS; LIGHTING.

         Tenant shall not, without Landlord's prior written consent:

                  (a)      install, alter or replace any exterior lighting,
decorations, exterior paintings, awnings, canopies or the like, or

                  (b)      erect, install, alter or replace any signs, window or
door lettering, placards, decorations or advertising media of any type which can
be viewed from the exterior of the Premises, except for Tenant's illuminated
logo to be placed in the lobby of the Premises which Landlord hereby approves.
All of the same shall be subject to the sign criteria established by Landlord
for the Project from time to time in the exercise of its sole discretion, and
shall be subject to the prior written approval of Landlord as to construction,
method of attachment, size, shape, height, lighting, color and general
appearance. Tenant shall be solely responsible for all costs associated with the
installation and maintenance of such signs. All signs are subject to applicable
laws and deed restrictions and shall conform to any national, local or municipal
ordinance or regulation. All signs shall be kept in good condition and in proper
operating order at all times. At Landlord's option and request, Tenant shall
remove all signs at the termination of this Lease, and shall repair any damage
and close any holes caused by such removal, with such repairs to be made in a
good workmanlike manner. Tenant shall not erect any signs on the roof or paint
or otherwise deface the exterior walls of the Building.

         6.       USAGE AND INSURANCE.

         The Premises shall be used only for the purpose of general office use
and other customary uses related to the use of the Premises as a first-class
office building, including the operation of a data center, the operation of a
copy center for Tenant's internal use, and the operation of a lunchroom or
cafeteria for use by Tenant's employees and invitees (but not for the sale of
food or other products to the general public). Under no circumstances shall
Tenant be permitted to use, maintain, store or dispose of any blood or plasma
products within the Project or the Premises, whether in connection with Tenant's
business operations or otherwise. Tenant shall comply with all governmental
laws, ordinances and regulations applicable to the use of the Premises, and
shall promptly comply with all governmental orders and directives for the
correction, prevention and abatement of nuisances in, upon, or connected with
the Premises, all at Tenant's sole expense. Without Landlord's prior written
consent, Tenant shall not receive, store or otherwise handle any product,
material or merchandise which is explosive or highly inflammable or any other
hazardous substance, other than customary cleaning products and office supplies
in reasonable quantities, subject always to the provisions of Section 22 below.
Tenant will not permit the Premises to be used for any purpose which would
render the insurance thereon void or the insurance risk more hazardous (unless
Tenant pays the entire amount of any increase in Landlord's Insurance Charges
resulting from such increased risk); nor shall the Premises be used for any
illegal purposes; nor in violation of any regulation of governmental body; nor
in any manner to create any nuisance or trespass. If the insurance premiums on
the building in which premises are located are increased due to Tenant's use of
the Premises, then, Tenant shall pay such increase in premium as Additional
Rent.

         7.       JANITORIAL SERVICE.

         Tenant, at its own cost and expense, shall pay all charges for
janitorial services performed in the Premises during the Term of this Lease.
Tenant shall contract with a the janitorial services company.

                                       10
<PAGE>   11

         8.       SERVICES.

         (a)      Tenant, at its sole cost and expense, shall pay all charges
for gas and electricity used or consumed by Tenant or others from the Premises
or any portion thereof during the Term of this Lease. Such charges shall be paid
by Tenant directly to the applicable utility company. Upon Landlord's request
from time to time no more than twice annually (or at any time in the event
Landlord receives notice from any utility provider that such charges have not
been timely paid by Tenant), Tenant shall provide evidence to Landlord that
Tenant has paid such utility charges in full to the applicable utility company.
In addition, Tenant agrees to reimburse Landlord semi-annually and immediately
upon ten (10) business days' notice, as Additional Rent hereunder, Tenant's
Share of any and all water charges incurred by, at or from the Building. If the
water to the Building is separately metered, then notwithstanding anything
contained to the contrary in this Lease, Tenant's Share of such water charges
shall be 100%.

         (b)      Tenant shall pay all telephone charges for services contracted
for by or on behalf of Tenant or other occupant of the Premises or any portion
thereof.

         (c)      Failure in the provision or furnishment of any of said
services, or any cessation thereof, resulting from any cause whatsoever shall
neither render Landlord liable in any respect for damages to either person or
property, be construed as an eviction of Tenant, work an abatement of rent nor
relieve Tenant from fulfillment of any covenant of this Lease. Landlord agrees
that Landlord shall not divert or otherwise reduce the present electrical
capacity of the Building during the Term of this Lease for use by any other
portion of the Project or other tenant therein. Should any of the equipment or
machinery break down, or for any cause cease to function properly, Tenant shall
repair the same properly, and Tenant shall have no claim for rebate of rent or
damages on account of any interruptions in service occasioned from the repairs.

         9.       REPAIRS AND MAINTENANCE.

         (a)      Landlord agrees that it shall at all times, at its sole cost
and expense, keep the roof of the Building and the structural walls (excluding
windows, window glass, plate glass and all doors), the structural floors, the
structural beams/columns of the Building, and the foundation of the Building in
good repair and condition, reasonable wear and tear and any damage caused by
Tenant or Tenant's employees, officers, servants, agents, contractors,
subcontractors, assignees, sublessees, licensees or invitees or persons employed
by any of them excepted. If any exterior glass is destroyed or displaced as a
result of a defect in the structure of the Building or as a result of needed
maintenance or repairs to the structure of the Building, then Landlord shall, at
its expense, repair or replace any such exterior glass as needed. In addition,
Landlord agrees that it shall at all times, keep the Common Areas in good repair
and condition, reasonable wear and tear excepted, and will promptly make all
repairs thereto which may be necessary during the Term of this Lease. Tenant
agrees that the costs associated with the immediately preceding sentence shall
be included in CAM Charges and paid by Tenant to Landlord as set forth in
Section 4 above and subject to the limitations set forth in Section 4 above. In
addition, subject to the provisions of Exhibit "B" attached hereto, prior to the
date on which Landlord delivers possession of the Premises to Tenant, Landlord
shall test and evaluate the HVAC systems of the Building and cause such HVAC
system to be in good working order prior to such date. Except as specifically
set forth herein, Tenant shall be responsible for all other maintenance, repair
and replacements required to the Premises and in connection with the Premises.
Landlord shall not be liable to Tenant for any damage or inconvenience, and
Tenant shall not be entitled to any abatement or reduction of rent, by reason of
any repairs, alterations or additions made by Landlord under this Lease.

                                       11
<PAGE>   12

         (b)      Other than those items for which Landlord shall be responsible
in accordance with the provisions in Section 9(a) above, Tenant shall, at its
own cost and expense, perform all maintenance, make all repairs, and replace any
and all damages or injury to all or any part of the Premises, in order to keep
the Premises in good, safe and clean condition and repair at all times,
including, but not limited to repairing any damage or injury caused by Tenant or
Tenant's agent, employees, invitees, licensees or visitors; provided, however,
if Tenant fails to make the repairs or replacements within thirty (30) days of
receipt of notice of the need for such repairs or replacements (or such longer
or shorter period as may be reasonable under the circumstances), Landlord may,
at Landlord's option, make the repairs or replacements and Tenant shall
reimburse the actual cost plus fifteen (15%) percent overhead and administrative
to Landlord on demand. Landlord hereby grants Tenant the license to have access
to the roof of the Building solely for purposes of Tenant repairing, maintaining
and replacing the air conditioning units serving the Premises, provided that
Tenant shall be responsible for repairing any damage to the roof caused by
Tenant or Tenant's employees, officers, servants, agents, contractors,
subcontractors, assignees, sublessees, licensees or invitees or persons employed
by any of them, and provided further that Tenant shall not cause or permit any
act to occur which would invalidate any roof warranty or bond.

         (c)      Tenant shall not commit or allow any waste or damage to be
committed on any portion of the Premises, and at the termination of this Lease,
by lapse of time or otherwise, Tenant shall deliver the Premises to Landlord in
as good condition as at the date of first possession of Tenant, only ordinary
wear and tear excepted. The actual cost and expense plus fifteen (15%) percent
overhead and administrative of any repairs necessary to restore the condition of
the Premises shall be borne by Tenant, and if Landlord undertakes to restore the
Premises, it shall have the right of reimbursement against Tenant.

         (d)      Throughout the Term of this Lease, Tenant shall be responsible
for, among other items, the repairing or replacement of all fixtures installed
by Tenant, windows (other than any exterior glass for which Landlord shall be
responsible in accordance with the provisions in Section 9(a) above), glass
(other than any exterior glass for which Landlord shall be responsible in
accordance with the provisions in Section 9(a) above), plate glass (other than
any exterior glass for which Landlord shall be responsible in accordance with
the provisions in Section 9(a) above), locks, interior walls, floors, preventive
and routine maintenance of and repair/replacement to the heating, ventilating
and air conditioning systems and to the electrical, plumbing and sprinkler
systems serving the Premises. Maintenance made under this subsection shall be
made at Tenant's expense. Said mechanical unit requires periodic filter change
and routine service and adjustments at least four times annually. Tenant agrees
to enter into a preventive maintenance agreement with a service firm reasonably
approved by Landlord to provide said maintenance during the Term of this Lease
and any extensions thereof. A copy of said agreement or contract shall be
supplied to the Landlord within thirty (30) days after occupancy and Tenant is
subject to audit or inspection at all times to determine compliance. Provided
that Tenant shall have fully and strictly complied with its obligations
hereunder, if the compressor, condenser or other major components of the
existing 20-ton or 5-ton air conditioning units servicing the Premises become in
need of repair or replacement during the Term of this Lease, then the first
$1,000 of repair or replacement cost per occurrence in the case of the 20-ton
units and the first $500 in repair or replacement cost per occurrence in the
case of the 5-ton unit shall be paid by Tenant and Landlord, at Landlord's cost
and expense and not as a component of CAM Charges, shall pay the reasonable
repair and/or replacement costs per occurrence in excess thereof, provided that
Landlord's prior written consent of the nature and scope of the repair and
replacement and cost thereof is obtained by Tenant, which consent by Landlord
shall not be unreasonably withheld. Tenant shall further enter into a pest
control maintenance contract with a professional pest control company.

                                       12
<PAGE>   13

         (e)      The following event shall be deemed to be an event of default
by Landlord under this Lease: Landlord shall fail to comply with the covenant
made by Landlord under Section 9(a) above to maintain and repair the roof of the
Building in accordance with the terms and provisions of Section 9(a) of this
Lease and shall not cure such failure within thirty (30) days after receipt by
Landlord and any mortgagee of Landlord of written notice thereof by Tenant;
provided, however, if such default is of a nature that it can be cured and if
Landlord in good faith commences to cure such default within such cure period,
but due to the nature of such default it could not be cured within such cure
period after due diligence, no event of default shall be deemed to have occurred
at the end of the cure period if Landlord is then diligently pursuing such cure
to completion and completes such cure as promptly as reasonably possible under
all of the circumstances. Upon the occurrence of the aforesaid event of default
by Landlord, while the condition which gave rise to the event of default
continues, Tenant shall have the option to perform such obligation which
Landlord has failed to perform, and the actual reasonable amount of the cost and
expense incurred by Tenant to perform such obligation shall be paid by Landlord
to Tenant. Tenant shall provide Landlord with copies of the invoice or other
written evidence of the costs and expenses incurred by Tenant for which Tenant
claims reimbursement. If Landlord shall fail to pay such costs and expenses
within thirty (30) days after written demand therefor, Tenant shall have the
right to deduct the amount due by Landlord to Tenant hereunder as an offset from
Base Rent next due hereunder.

         10.      COMPLIANCE WITH LAWS, RULES AND REGULATIONS.

         Tenant shall comply with all laws, ordinances, orders, rules and
regulations of state, federal, municipal or other agencies or bodies having
jurisdiction relating to the use, condition and occupancy of the Premises.
Landlord represents and warrants that to the best of Landlord's actual
knowledge, Landlord has not received written notice from any applicable
governmental authority that the Premises is in violation of any laws,
ordinances, orders, rules or regulations of state, federal, municipal or other
agencies or bodies having jurisdiction relating to the use, condition and
occupancy thereof. Tenant will comply with the rules of the Building adopted by
Landlord, which are set forth on Exhibit "D" attached to this Lease. Landlord
shall have the right at all times to change the rules and regulations of the
Building or to amend them in any reasonable manner as may be deemed advisable
for the safety, care and cleanliness, and for the preservation of good order, of
the Premises. All changes and amendments in the rules and regulations of the
Building will be sent by Landlord or Tenant in writing and shall thereafter be
carried out and observed by Tenant.

         11.      LANDLORD IMPROVEMENTS.

         Construction is to be done by Landlord on the Premises prior to
Tenant's occupancy pursuant to the terms and provisions of Exhibit "B". Upon
"substantial completion" of the Initial Improvements (as defined in Exhibit
"B"), Tenant agrees to accept delivery of the Premises and to execute and
deliver to Landlord a letter of acceptance accepting delivery of the Premises
(an "Acceptance Letter"). "Substantial Completion" of the Initial Improvements
shall be deemed to occur when the Initial Improvements shall have been
substantially completed, a certificate of occupancy (either temporary or final)
or other governmental permit shall have been issued for the Premises permitting
legal use of the Premises, and there are no punch list item defects in the
Initial Improvements which materially interfere with Tenant's use of the
Premises for the purposes specified in this Lease. Subject to the provisions of
Section 2 above granting Tenant liquidated damages in certain circumstances, if
the Initial Improvements have not been substantially completed on or before
January 1, 2001, Landlord shall not be liable to Tenant in any manner for such
delay. Other than such construction prior to occupancy and other than Landlord's
maintenance obligations set forth in Section 9(a) above, Landlord shall have no
obligation to alter, remodel, improve, repair, decorate or paint the Premises.
By taking possession of the Premises, Tenant

                                       13
<PAGE>   14

accepts the Premises as being in good order, condition and repair, and in the
condition which Landlord is obligated to deliver them to Tenant, except for such
items as Tenant may set forth on in the Acceptance Letter or a punch list to be
provided from Tenant to Landlord in accordance with the Notices provision of
this Lease within thirty (30) days after Landlord's delivery of possession of
the Premises to Tenant. Tenant hereby expressly acknowledges and agrees that no
representations concerning the condition of the Building or the Project have
been made by Landlord to Tenant, except as may be specifically set forth in this
Lease. Landlord shall not be liable for any failure to make any repairs or to
perform any maintenance required of Landlord hereunder, unless such failure
shall persist for an unreasonable period of time after written notice of the
need for such repairs or maintenance is given to Landlord by Tenant in
accordance with the Notices provision of this Lease.

         12.      ALTERATIONS, LIENS.

         The obligations of Landlord and Tenant to perform work and supply
necessary materials and labor to prepare the Premises for occupancy are set
forth in the Tenant Improvement Agreement attached hereto as Exhibit "B" and
incorporated herein. Landlord and Tenant shall respectively expend such funds
and do all acts required of each of them in the Tenant Improvement Agreement.
Other than the matters specified in the Tenant Improvement Agreement, Tenant
shall not make any alterations, additions or improvements in or to the Premises,
nor install or attach fixtures in or to the Premises, without the prior written
consent of Landlord, which consent shall not be unreasonably withheld or denied;
provided, however, that with respect to any alterations, additions or
improvements which affect the structure of the Building, materially adversely
affect any of the Building's systems (e.g., mechanical, electrical or plumbing),
are visible from the exterior of the Building, or do not comply with all laws,
orders, ordinances, directions, requirements, rules and regulations of all
governmental authorities, such consent shall be in Landlord's sole and absolute
discretion. Notwithstanding the foregoing, Landlord's consent shall not be
required (but prior notice from Tenant to Landlord shall be required) for any
proposed minor, interior, non-structural alteration, addition or improvement
which does not affect the structure of the Building, does not materially
adversely affect any of the Building's systems (e.g., mechanical, electrical or
plumbing), does not require the use of materials, finishes or installations
other than Building standard items, is not visible from the common areas or
exterior of the Building, is in full compliance with all laws, orders,
ordinances, directions, requirements, rules and regulations of all governmental
authorities, and does not exceed Fifty Thousand Dollars ($50,000.00) in cost in
the aggregate in each instance. Notwithstanding the foregoing, no such prior
notice to Landlord shall be required for any painting, carpeting and/or purely
decorative changes made to the interior of the Premises, regardless of the cost
thereof. All alterations, additions or improvements made, installed in or
attached to the Premises by Tenant, upon the consent specified above, shall be
made at Tenant's expense in a good and workmanlike manner, in accordance with
the plans and specifications prepared for Tenant by a registered architect and
approved by Landlord, all applicable laws, ordinances, regulations and other
requirements of any appropriate governmental authority, and any applicable
covenants or other restrictions prior to the commencement of any work permitted
in accordance with this Section, Tenant shall deliver to Landlord a certificate
of insurance in favor of Landlord from the contractor or contractors which will
perform the work certifying that insurance coverage reasonably satisfactory to
Landlord is in effect.

         Tenant shall keep the Premises free from all liens, rights to liens or
claims of liens of contractors, subcontractors, mechanics or materialmen for
work done or materials furnished to the Property at the request of Tenant;
whenever and so often as any such lien shall attach or claims therefor shall be
filed against the Property or any part thereof as a result of work done or
materials furnished to the Property at the request of Tenant, Tenant shall,
within thirty (30) days after Tenant has notice of the claim for lien, cause the
same to be discharged of record, which discharge may be accomplished by payment,
deposit or bonding proceedings. If Tenant shall fail to cause such lien to be
discharged within the period aforesaid, then, Tenant shall be in default of its
obligations hereunder and, in addition to any other right or

                                       14
<PAGE>   15

remedy, Landlord may, but shall not be obligated to, discharge the same either
by paying the amount claimed to be due or by procuring the discharge of such
lien by deposit or by bonding proceedings. Any amount so paid by Landlord and
all costs and expenses, including without limitation attorneys' fees, incurred
by Landlord in connection therewith shall constitute Additional Rent payable by
Tenant under this Lease and shall be paid by Tenant in full within ten (10)
business days of demand of Landlord, together with interest at the Default Rate
thereon from the date the same was paid by Landlord as provided herein. Tenant
shall not have the authority to subject the interest or estate of Landlord to
any liens, rights to liens or claims of liens for services, material, supplies
or equipment furnished to Tenant, and all persons contracting with Tenant are
hereby charged with notice that they must look to Tenant and to Tenant's
interest only to secure payment.

         Except for items which are easily removable, or which can be removed
but require remediation of the Premises which Tenant agrees to perform at
Tenant's cost and expense, all alterations, additions or improvements,
including, but not limited to, fixtures, partitions, counters and window and
floor coverings, which may be made or installed by either of the parties hereto
upon the Premises, irrespective of the manner of annexation, and irrespective of
which party may have paid the cost thereof, shall be the property of Landlord,
and shall remain upon and be surrendered with the Premises as a part thereof at
the termination of this Lease, without disturbance, molestation or injury;
provided, however, Tenant shall have the right to remove from the Premises
movable office furniture, movable partitions, data processing and related
equipment and improvements put in at the expense of Tenant, but only if such
furniture, equipment and improvements were not constructed or installed as part
of the "Initial Improvements" pursuant to the Tenant Improvement Agreement or
other written consent by Landlord. Tenant shall, prior to the termination of
this Lease, restore any areas damaged or affected by the removal of any such
furniture, equipment and improvements to the condition existing prior to the
installation of such furniture, equipment and improvements. The parties
acknowledge and agree that any improvements, alteration, additions, equipment or
facilities constructed or installed as part of the "Initial Improvements"
pursuant to the Tenant Improvement Agreement provided herein or other written
consent by Landlord, shall be the property of Landlord and shall remain upon and
be surrendered with the Premises as a part thereof at the termination of this
Lease. Notwithstanding the foregoing, however, upon written notice delivered to
Tenant at the time of Landlord's approval of Tenant's plans and specifications,
Landlord may elect that any or all installations made or installed by or on
behalf of Tenant after the Commencement Date that are non-standard for general
office use be removed at the end of the Lease Term and, if Landlord so elects,
Tenant shall restore the Premises to the condition they were in previous to such
alterations, additions, improvements, partitions and fixtures on or before the
termination of this Lease, reasonable wear and tear excepted. Such removal and
restoration shall be at the sole expense of Tenant. Further, notwithstanding
anything herein contained, Landlord shall be under no obligation to insure such
alterations, additions, improvements, partitions and fixtures or anything in the
nature of a leasehold improvement made or installed by or on behalf of Tenant,
and all property of Tenant, Tenant's agents, servants, employees, invitees,
licensees, contractors, subcontractors or any other person, shall be on the
Premises at the risk of Tenant only, and Landlord, shall not be responsible for
any damage, destruction, or theft thereof.

         13.      CONDEMNATION.

         In the event any material portion of the Building or substantially all
of the parking available for use by Tenant, or all of the means of ingress and
egress to the Building, shall be taken by condemnation or the exercise of the
right of eminent domain, or if in lieu of any formal condemnation proceedings or
actions, if any, Landlord shall sell any material portion thereof, to the
governmental or other public

                                       15
<PAGE>   16

authority, agency, body or public utility, seeking to take said land, thereby
rendering the Premises unsuitable for the continuation of Tenant's business
operations therein, as determined by Landlord or Tenant in either of their
reasonable discretion, then either party, at its option, may terminate this
Lease upon ten (10) days' prior written notice to the other, provided such
notice is delivered within thirty (30) days from the date of possession by the
condemning authority and prepaid rent shall be proportionately refunded from the
date of possession by the condemning authority. All damages awarded for such
taking, or paid as the purchase price for such sale and conveyance in lieu of
formal condemnation proceedings, whether for the fee or the leasehold interest,
shall belong to and be the property of Landlord; provided, however, Tenant shall
have the sole right to reclaim and recover from the condemning authority, but
not from Landlord, such condemnation as may be separately awarded or recoverable
by Tenant in Tenant's own right on account of any and all costs or loss
(including loss of business) to which Tenant might be put in removing Tenant's
merchandise, furniture, fixtures, leasehold improvements and equipment to a new
location. Tenant shall execute and deliver any instruments, at the expense of
Landlord, as Landlord may deem necessary to expedite any condemnation
proceedings or to effectuate a proper transfer of title to such governmental or
other public authority, agency, body or public utility seeking to take or
acquire the said lands and Premises or any portion thereof. Tenant shall vacate
the Premises, remove all Tenant's personal property therefrom and deliver up
peaceable possession thereof to Landlord or to such other party designated by
Landlord in the aforementioned notice. Failure by Tenant to comply with any
provisions of this Section shall subject Tenant to such costs, expenses, damages
and losses as Landlord may incur by reason of Tenant's breach hereof. If neither
party chooses to terminate this Lease, then to the extent and availability of
condemnation proceeds received by Landlord and subject to the rights of any
mortgagee thereto, Landlord shall at the sole cost and expense of Landlord and
with due diligence and in good and workmanlike manner, restore and reconstruct
the Premises (including the Initial Improvements) within a period of one hundred
eighty (180) working days after the date of the physical taking, and such
restoration and reconstruction shall make the same reasonable tenantable and
suitable for the general use being made by Tenant prior to the taking; provided,
however, that Landlord shall have no obligation to restore and reconstruct
Tenant's leasehold improvements (other than the Initial Improvements) unless and
to the extent that Landlord receives an award of condemnation proceeds
specifically designated as compensation for such improvements and receives any
mortgagees consent to do so. Notwithstanding the foregoing, if Landlord has not
completed such restoration and reconstruction on or before one hundred eighty
(180) working days after the date of physical taking, Tenant, in addition to any
other rights and remedies Tenant may have, shall have the right to cancel this
Lease. If this Lease continues in effect after such physical taking, the rent
which is payable hereunder shall be equitably adjusted both during the period of
restoration and reconstruction operations of Landlord and during the unexpired
portion of the Lease Term.

         In the event Landlord, during the Lease Term, shall be required by any
governmental authority or the order of decree of any court, to repair, alter,
remove, reconstruct or improve any part of the Premises, other than those
repairs, alterations or improvements required as a result of Tenant's use,
occupancy and operation at the Premises, then such repairs, alterations,
removal, reconstruction or improvement may be made by and at the expense of
Landlord and shall not in any way affect the obligations or covenants of Tenant
herein contained, and Tenant hereby waives all claims for damages or abatement
of rent because of such repairs, alterations, removal, reconstruction or
improvement, except that rent shall abate during the period of and to the extent
of untenantability; provided, if the repairs, alterations, removal,
reconstruction or improvement required, ordered or decreed shall render the
Premises untenantable, then unless said repairs, alteration, removal,
reconstruction or improvement is completed within one hundred eighty (180)
working days after the date of the notice, requirement, order or decree, either
party hereto upon written notice to the other party given not later than two
hundred ten (210) working days after the date of said notice, requirement, order
or decree, may terminate this Lease, in which case rent shall be apportioned and
paid to the date the Premises were rendered untenantable;

                                       16
<PAGE>   17

provided however that where the requirement by a governmental authority having
jurisdiction to repair, alter, remove, reconstruct or improve any part of the
Premises arises out of any act of omission or commission by Tenant, or out of
Tenant's specific use of the Premises, then such repair, alteration, removal,
reconstruction of improvement shall be effected promptly at the sole cost and
expense of Tenant and there shall not, in any event, be any abatement of rent
nor any right in Tenant to terminate this Lease whether or not the completion of
such repair, alteration, removal, reconstruction or improvement takes more than
one hundred eighty (180) working days.

         14.      FIRE AND CASUALTY.

         (a)      If the Premises shall be partially or totally damaged or
destroyed by fire or other casualty, then whether or not the damage or
destruction shall have resulted from the fault or neglect of Tenant, or its
employees, agents or visitors, and if this Lease shall not have been terminated
as in this Section 14 hereinafter provided, then Landlord shall repair the
damage and restore and rebuild the Premises, without limiting the rights of
Landlord under any other provisions of this Lease, with reasonable dispatch
after notice to it of the damage or destruction; provided, however, that
Landlord shall not be required to repair or replace any of Tenant's personal
property or any leasehold improvements made after the Commencement Date.

         (b)      If the Premises shall be partially damaged or partially
destroyed by fire or other casualty, then whether or not such fire or damage
shall have resulted from the negligence of Tenant, the rents payable hereunder
shall be abated to the extent that the Premises shall have been rendered
untenantable and are in fact not occupied by Tenant for the period from the date
of such damage or destruction to the date the damage shall be repaired or
restored. If the Premises or a major part thereof shall be totally (which shall
be deemed to include substantially totally) damaged or destroyed and rendered
completely (which shall be deemed to include substantially completely)
untenantable on account of fire or other casualty, the rents shall abate as of
the date of the damage or destruction and until Landlord shall repair, restore
and rebuild the Building and the Premises; provided, however, that should Tenant
reoccupy a portion of the Premises during the period the restoration work is
taking place and prior to the date that the same are made in all material
respects tenantable, rents allocable to such portion shall be payable by Tenant
from the date of such occupancy.

         (c)      If the Premises shall be totally damaged or destroyed by fire
or other casualty, or if the Premises shall be so damaged or destroyed by fire
or other casualty as to require a reasonably estimated expenditure of more than
forty percent (40%) of the full insurable value of the Building immediately
prior to the casualty, or if there shall be damage to the Premises resulting
from a risk other than an insured risk to an extent greater than twenty-five
percent (25%) of the replacement cost of the Premises above the foundation, then
in any such case Landlord may terminate this Lease by giving Tenant notice to
such effect within ninety (90) days after the date of the casualty. In case of
any damage or destruction mentioned in this Section 14, if Landlord has not
substantially completed the making of the required repairs and restored and
rebuilt the Premises and access thereto for any reason other than Force Majeure
Delay or Tenant Delay within three hundred sixty-five (365) days from the date
of the commencement of the restoration work, then Tenant may terminate this
Lease upon not less than thirty (30) days' written notice to Landlord given at
any time prior to substantial completion of the restoration work; provided,
however, in the event Landlord substantially completes the repairs and
restoration of the Premises and access thereto within the thirty (30) day period
following Landlord's receipt of Tenant's written notice electing to terminate
this Lease, Tenant's termination notice shall be void and of no force or effect
and this Lease shall continue in full force and effect for the remainder of the
Term, unless earlier terminated pursuant to any other provision of this Lease.
In the case of any damage or destruction to the Premises occurring during the
last twelve (12) months of the Term of this Lease, either Landlord or Tenant may

                                       17
<PAGE>   18

terminate this Lease by written notice to the other if Landlord reasonably
estimates that more than sixty (60) days shall be required to substantially
complete the making of the required repairs and restore and rebuild the
Premises.

         (d)      In the case of any damage or destruction mentioned in Section
14, Landlord, within sixty (60) days after such damage or destruction, or within
such longer period as may be reasonably required, shall deliver to Tenant an
estimate (the "Estimate") of the time (the "Estimated Time") required to repair
or restore the damage or destruction, prepared by an independent contractor or
architect selected by Landlord. In addition to Tenant's rights to terminate this
Lease as provided in Section 14(c), if the Estimated Time set forth in the
Estimate exceeds three hundred sixty-five (365) days from the date of the
Estimate, Tenant may terminate this Lease by notice to Landlord delivered by
Tenant within ten (10) days after Tenant's receipt of the Estimate.

         (e)      No damages, compensation or claim shall be payable by Landlord
for inconvenience, loss of business, annoyance or otherwise arising from any
repair or restoration of any portion of the Premises pursuant to this Section
14(c) above.

         (f)      Landlord will not carry separate insurance of any kind on
Tenant's property or improvements constructed after the Commencement Date, and
shall not be obligated to repair any damage thereto or replace the same. Tenant
shall maintain insurance on Tenant's property and on any improvements made after
the Commencement Date, and Landlord shall not be obligated to repair any damage
thereto or replace the same.

         (g)      Landlord and Tenant shall each look first to any insurance in
its favor before making any claim against the other party for recovery for loss
or damage resulting from fire or other casualty.

         (h)      Landlord agrees to include in its fire insurance policies
appropriate clauses pursuant to which the insurance companies (i) waive all
right of subrogation against Tenant with respect to losses payable under such
policies and/or (ii) agree that such policies shall not be invalidated should
the insured waive in writing prior to a loss any or all right of recovery
against any party for losses covered by such policies. Tenant agrees to include
in its fire insurance policy or policies on its furniture, furnishings, fixtures
and other property removable by Tenant under the provisions of this Lease
appropriate clauses pursuant to which the insurance company or companies (i)
waive the right of subrogation against Landlord with respect to losses payable
under such policy or policies, and/or (ii) agree that such policy or policies
shall not be invalidated should the insured waive in writing prior to a loss any
or all right of recovery against any party for losses covered by such policy or
policies. Provided that Landlord's right of full recovery under its policy or
policies aforesaid is not adversely affected or prejudiced thereby, Landlord
hereby waives any and all right of recovery which it might otherwise have
against Tenant, its servants, agents and employees, for loss or damage occurring
to the Building and the fixtures, appurtenances and equipment therein, to the
extent the same is covered by Landlord's insurance, notwithstanding that such
loss or damage may result from the negligence or fault of Tenant, its servants,
agents or employees. Provided that Tenant's right of full recovery under its
aforesaid policy or policies is not adversely affected or prejudiced thereby,
Tenant hereby waives any and all right of recovery which it might otherwise have
against Landlord, its servants, agents and employees, for loss or damage to
Tenant's furniture, furnishings, fixtures and other property removable by Tenant
under the provisions hereof to the extent that same is covered by Tenant's
insurance, or would have been covered by Tenant's insurance had Tenant complied
with Tenant's insurance obligations under this Lease, notwithstanding that such
loss or damage may result from the negligence or fault of Landlord, its
servants, agents or employees, or such other tenant and the servants, agents or
employees thereof. Landlord and Tenant hereby agree to advise the other promptly
if the clauses to be included in their respective insurance policies pursuant to
this

                                       18
<PAGE>   19

Section 14 cannot be obtained. Landlord and Tenant hereby also agree to notify
the other promptly of any cancellation or change of the terms of any such policy
which would affect such clauses.

         15.      INSURANCE.

         (a)      Throughout the Lease Term, or any extension thereof, Landlord
will insure the Building (excluding foundations and excavations) and the
machinery and equipment contained therein owned by Landlord (excluding any
property with respect to which Tenant is obliged to insure) against damage by
fire, explosion and extended coverage, and other risks customarily insured
against by owners of comparable office parks in the Atlanta, Georgia,
metropolitan area. Landlord may, but shall not be obligated to, take out and
carry any other form or forms of insurance as it or its mortgagee may determine
advisable.

         (b)      Tenant shall comply with all insurance regulations, and after
Tenant has been notified of same nothing shall be done or kept in or on the
Premises by Tenant which will cause cancellation of any such insurance. If any
insurance policy upon the Premises or the Project or any part thereof shall be
canceled or shall be threatened by the insurer to be canceled, the coverage
thereunder reduced or threatened to be reduced or the cost thereof increased or
threatened to be increased in any way by the insurer by reason of the use and
occupation of the Premises by Tenant or by any assignee or subtenant of Tenant,
other than in strict conformity with this Lease, the bringing onto or within the
Building of any flammable, noxious or otherwise dangerous substance by Tenant or
the conduct of any other activity in or about the Premises which in any way
increases the hazard or risk beyond that for which the insurance was written and
for the uses herein provided for, and if Tenant fails to remedy the condition
giving rise to such cancellation, reduction on cost increase or threat thereof
within five (5) business days after written notice thereof by Landlord, Landlord
may, at its option, do any one of the following:

         (i)      Declare a default by Tenant, and thereupon the provisions of
         this Lease with respect thereto shall apply; or

         (ii)     If the sole action taken by such insurer is to raise the
         premium or other monetary cost of such insurance, demand payment from
         Tenant of such amount of the increase in the premium or other cost
         (over the previous base amount) as Additional Rent hereunder, and if
         Tenant fails to make payment of same to Landlord within thirty (30)
         days of such demand by Landlord in writing, Landlord may declare a
         default by Tenant and thereupon the provisions of this lease with
         respect thereto shall apply. Notwithstanding any contribution by Tenant
         to the cost of insurance premiums, as provided herein, Tenant
         acknowledges that it has no right to receive any proceeds from any such
         insurance policies carried by Landlord and that such insurance will be
         for the sole benefit of Landlord with no coverage for Tenant for any
         risk insured against.

         (c)      Tenant shall, during its occupancy of the Premises and during
the entire Lease Term, at its sole cost and expense, obtain, maintain and keep
in full force and effect, and with Tenant, Landlord and Landlord's mortgagees
named as additional insured therein as their respective interests may appear,
the following types and kinds of insurance:

         (i)      Property Insurance upon property of every description and kind
         owned by Tenant and located in the Building or for which Tenant is
         legally liable or installed by or on behalf or Tenant, including,
         without limitation, furniture, fittings, installations, alteration,
         additions, partitions and fixtures, in an amount not less than one
         hundred percent (100%) of the full replacement cost thereof; and in the
         event that there shall be a dispute as to the amount which comprise
         full replacement cost, the decision of Landlord shall be conclusive.

                                       19
<PAGE>   20

         (ii)     Commercial general liability insurance in an amount not less
         than $1,000,000.00 for any one occurrence or such higher limits as
         Landlord may reasonably require from time to time; such insurance shall
         include coverage for "Fire Legal" liability (coverage against damage to
         the property of any other tenant of the Building for which Tenant would
         be liable) with respect to the Premises.

         (iii)    Worker's compensation insurance in the amount required by law
         to protect Tenant's employees.

         (iv)     Any other form or forms of insurance as Tenant or Landlord may
         reasonably require from time to time, in form, in amounts and for
         insurance risks against which a prudent tenant would protect itself,
         provided such additional coverage is appropriate, customary and
         generally required for like premises utilized for similar purpose in
         the Metropolitan Atlanta area.

         (d)      All insurance policies shall be taken out with companies
licensed and registered to operate in the State of Georgia (or if not licensed
in the State of Georgia, a national company with a Best Rating of no less than
A-) acceptable to Landlord in its reasonable discretion and in form satisfactory
to Landlord in its reasonable discretion. Such insurance may be by blanket
insurance policy or policies. Tenant shall deliver certificates evidencing such
insurance policies, and any endorsement, rider or renewal thereof, to Landlord;
certificates evidencing renewals shall be delivered to Landlord no later than
fifteen (15) days after each renewal, as often as renewal occurs, and in no
event less than fifteen (15) days prior to the date on which the policy would
otherwise expire. All such insurance policies shall require said insurance
companies to notify Landlord and Landlord's mortgagees in writing thirty (30)
days prior to any material change, cancellation or sooner termination thereof.
In addition to the foregoing, if Tenant performs any work on the Premises, prior
to the commencement of any such work, Tenant shall deliver to Landlord
certificates issued by insurance companies licensed and registered to operate in
the State of Georgia, evidencing that workers' compensation insurance, public
liability insurance and property damage insurance, all in amounts reasonably
satisfactory to Landlord, are in force and effect and maintained by all
contractors and subcontractors engaged by Tenant to perform such work. Landlord
agrees to act reasonably and in good faith with respect to the decisions
required of Landlord under this Section 15. The reasonableness of any consent or
approval (or denial thereof) or of the exercise of Landlord's discretion shall
be determined in accordance with generally accepted management, leasing, and
operating practices for similar tenants in similar office buildings in the
Metropolitan Atlanta area. The parties hereto intend that such reasonableness
standard shall be implemented on an objective standard, instead of a subjective
one, and such concept of reasonableness does not include or comprehend arbitrary
or capricious reasons or considerations based on such factors such as pecuniary
gain or mere personal preferences.

         16.      WAIVER OF SUBROGATION.

         Anything in this Lease to the contrary notwithstanding, Landlord and
Tenant hereby waive and release each other of and from any and all rights of
recovery, claim, action or cause of action, against each other, their agents,
officers and employees, for any loss or damage that may occur to the Premises,
improvements to the Building, or personal property (building contents) within
the Building or the Project, by reason of fire, the elements or any other cause
which could be insured against under the terms of standard fire and extended
coverage insurance policies, regardless of cause of origin, including

                                       20
<PAGE>   21

negligence of Landlord or Tenant and their agents, officers and employees.
Because this Section will preclude the assignment of any claim mentioned in it
by way of subrogation (or otherwise) to an insurance company (or any other
person), each party to this Lease agrees immediately to give to each insurance
company which has issued to it policies of fire and extended coverage insurance,
written notice of the terms of the mutual waivers contained in this Section, and
to have the insurance policies properly endorsed, if necessary, to prevent the
invalidation of the insurance coverages by reason of the mutual waivers
contained in this Section.

         17.      INDEMNIFICATION.

         (a)      Subject to the provisions of Sections 14(h) and 16 above, and
notwithstanding that joint or concurrent liability may be imposed upon Landlord
by law, Tenant shall indemnify, defend and hold harmless Landlord and the
Project, at Tenant's expense, against (i) any default by Tenant or permitted
subtenant hereunder; (ii) any negligence or wilful misconduct of Tenant or its
agents, contractors, employees, invitees or licensees; and (iii) all claims for
damages to persons or property by reason of the use or occupancy of the Premises
not caused by Landlord. Moreover, Landlord shall not be liable for any damage or
injury to the Premises, to Tenant's property, to Tenant, its agents,
contractors, employees, invitees or licensees, arising from any use or
conditions of the Premises, or any sidewalks or entrance ways serving the
Premises, or the act or neglect of co-tenants or any other person, or the
malfunction of any equipment or apparatus serving the Premises, or any loss
thereof by mysterious disappearance or otherwise. Any and all claims against
Landlord for any damage referred to in this Section are hereby waived and
released by Tenant, unless arising from the gross negligence or wilful
misconduct of Landlord.

         (b)      Subject to the provisions of Sections 14(h) and16 above,
Landlord shall indemnify, defend and hold harmless Tenant, at Landlord's
expense, against any and all claims, losses, liability, expenses or attorneys'
fees for any injury or death to any person or damage to property caused by the
negligence or willful misconduct Landlord or its agents, contractors, employees
or licensees (but excepting those resulting from the negligence of Tenant, its
agents, contractors, employees, invitees, licensees, subtenants, and assignees)
occurring in the common areas of the Project or in the Premises, but only to the
extent of the proceeds actually received by Landlord from Landlord's commercial
general liability insurance with respect to the Project. The indemnity, defense
and hold harmless agreement in the preceding sentence shall not be applicable to
any such liability, loss, cost, damage or expense imposed on Tenant by any
employee, partner, agent, or contractor of Tenant unless such liability, loss,
cost, damage, or expense was caused by the willful misconduct or negligence of
Landlord or any of its agents, servants, employees, contractors or
representatives acting within the scope of their agency, employment, contract or
representation and not from the negligence of Tenant, its employees,
contractors, servants, agents, representatives, invitees, subtenants, and
assignees.

         18.      QUIET ENJOYMENT.

         Landlord warrants that it has full right to execute and to perform this
Lease and that Tenant, upon payment of the required rents and performing the
terms, conditions, covenants and agreements contained in this Lease, and so long
as no default occurs and continues beyond any applicable grace periods, shall
peaceably and quietly have, hold and enjoy the Premises during the full Term of
this Lease as well as any extension or renewal without hindrance by Landlord or
its agents, subject to other provisions of this Lease; provided, however, that,
subject to the provisions of Section 28 below, Tenant accepts this Lease subject
and subordinate to any recorded deed to secure debt, mortgage, deed of trust or
other lien presently existing upon the Premises and to any deed to secure debt,
mortgage, deed of trust or other lien hereafter placed on the Premises, and
Tenant agrees upon demand to execute additional instruments subordinating this
Lease as Landlord may reasonably require.

                                       21
<PAGE>   22

         19.      LANDLORD'S RIGHT OF ENTRY.

         Landlord shall have the right, at all reasonable hours, provided
Landlord gives Tenant reasonable prior notice and gives Tenant the opportunity
to have a representative of Tenant present (except in the event of an
emergency), to enter the Premises for the following: emergency inspection;
making repairs as Landlord may deem necessary or desirable; determining Tenant's
use of the Premises; or determining if an act of default under this Lease has
occurred or upon the occurrence of a default; or to exhibit the Premises to
mortgagees, prospective mortgagees and prospective purchasers; or to exhibit the
Premises to prospective tenants during the last nine (9) months of the Lease
Term or at any other time that Tenant is in default hereunder beyond applicable
notice and cure periods. During such time as work is being performed in or about
the Premises, payments provided herein shall not abate and Tenant waives any
claim or cause of action against Landlord by reason of interruption of Tenant's
business or loss of profits resulting therefrom, provided that Landlord shall
use reasonable efforts not to materially interfere with Tenant's daily operation
of its business in the Premises. Notwithstanding the foregoing, subject to the
provisions below, Tenant shall be permitted to install locks or other access
control devices for high security areas in the Premises (such areas designated
by Tenant in writing to Landlord are herein referred to as the "Secured Areas"),
and Tenant shall not be required to furnish Landlord with a duplicate set of
keys or access control devices to the Secured Areas (unless Landlord is required
by law to have keys or other means of access to such Secure Areas), and Landlord
shall not be permitted to enter the Secured Areas (i) unless with the prior
written consent of Tenant, which consent Tenant shall not unreasonably withhold
or delay, or (ii) except in the case of an emergency. The Secured Areas shall
not constitute more than ten percent (10%) of the total rentable area of the
Premises and shall not eliminate access to the portion of the Premises which is
not a Secured Area. To the extent Landlord is otherwise obligated to do so
pursuant to this Lease, Landlord shall not be required to perform any service to
any Secured Area to which Landlord does not have access and for which access is
necessary for the provision of such service. The Secured Areas shall not prevent
access to the roof of the Building.

         20.      ASSIGNMENT OR SUBLEASE.

         Tenant shall not assign this Lease, or any interest herein, or
mortgage, pledge, encumber, hypothecate or otherwise transfer or sublet or allow
any other person, firm or corporation to use or occupy the Premises, or any part
thereof, without the prior written consent of Landlord, which consent shall not
be unreasonably withheld or denied; provided however that Landlord shall have
the right to apply such tests and make such investigations as it deems
reasonable and necessary in determining the acceptability of any proposed
assignee or subtenant, and without limiting the generality of the foregoing,
such tests may include the financial background and business history; provided
further that Tenant shall provide to Landlord such information as Landlord may
reasonably require to enable it to determine the acceptability of the proposed
assignee or subtenant, including information concerning all of the foregoing
matters, and Landlord shall have no obligation to consent to any assignment or
subletting unless it has received from Tenant (at no cost or expense to
Landlord) the most recent financial statements (audited if and to the extent
available) of the proposed assignee or subtenant and such other information as
Landlord reasonably requires (all of the foregoing information is herein
sometimes collectively referred to as the "Proposed Transfer Information"). It
shall be reasonable for Landlord to withhold its consent to any assignment or
sublease if (i) Tenant is in default under this Lease beyond any applicable
notice and cure period, (ii) the proposed assignee or sublessee is a tenant in
the Project and Landlord can accommodate such tenant's space needs in the
Project, (iii) the financial responsibility, nature of business, and character
of the proposed assignee or subtenant are not all reasonably satisfactory to
Landlord, it being agreed that the net worth and credit rating of Tenant shall
be taken into account by Landlord in its review of the financial responsibility
of the proposed assignee or subtenant, (iv) in the reasonable judgment of
Landlord the purpose for which the assignee or subtenant intends to use the
Premises (or a portion thereof) is not in keeping with Landlord's standards for
the Building or are in violation of the terms of this Lease or any

                                       22
<PAGE>   23

other leases in the Project, (v) the proposed assignee or subtenant is a
governmental entity, or (vi) the proposed assignment (as opposed to a sublease)
is for less than the entire Premises or for less than the remaining Term of this
Lease. The foregoing shall not exclude any other reasonable basis for Landlord
to withhold its consent. In the event Landlord fails to approve or disapprove
any such sublease or assignment request within twenty (20) days after Landlord's
receipt of all Proposed Transfer Information from Tenant, such sublease or
assignment shall be deemed to be approved. If Tenant is a corporation, any
dissolution, merger, consolidation or other reorganization of Tenant, or the
sale or transfer of a controlling interest in the capital stock of Tenant,
whether in a single transaction or in a series of transactions, shall be deemed
a voluntary assignment of this Lease and subject to the foregoing provisions,
except that the transfer of the outstanding capital stock of any corporate
tenant (including Serologicals Corporation) shall not be deemed to include the
sale of such stock by persons or parties through the "over-the-counter market"
(i.e., Nasdaq) or through the New York Stock Exchange. No assignment or
subletting (with or without the consent of Landlord or as permitted as provided
below) shall release Tenant from its obligations under this Lease nor shall
Tenant permit this Lease or any interest herein or in the tenancy hereby created
to become vested in or owned by any other person, firm or corporation by
operation of law or otherwise. The power of Landlord to give or withhold its
consent to any assignment or subletting shall not be exhausted by the exercise
thereof on one or more occasions, but the same shall be a continuing right and
power with respect to any type of transfer, assignment or subletting. Consent to
one or more such transfers or subleases shall not destroy or waive this
provision, and all subsequent transfers and subleases shall likewise be made
only upon obtaining the prior written consent of Landlord. No assignment of this
Lease consented to by Landlord shall be effective unless and until Landlord
shall receive an original assignment and assumption agreement, in form and
substance satisfactory to Landlord in its reasonable discretion, signed by
Tenant and Tenant's proposed assignee, whereby the assignee assumes due
performance of this Lease to be done and performed for the balance of the then
remaining Lease Term of this Lease. No subletting of the Premises, or any part
thereof, shall be effective unless and until there shall have been delivered to
Landlord an agreement, in form and substance satisfactory to Landlord in its
reasonable discretion, signed by Tenant and the proposed sublessee, whereby the
sublessee acknowledges the right of Landlord to continue or terminate any
sublease, in Landlord's sole discretion, upon termination of this Lease, and
such sublessee agrees to recognize and attorn to Landlord in the event that
Landlord elects under such circumstances to continue such sublease.

         Provided Tenant is not in default under this Lease beyond any
applicable notice and cure period, and subject to the terms and conditions
contained herein, Tenant shall have the right, upon at least five (5) days'
prior written notice to Landlord, to sublease any portion of the Premises to an
Affiliate (defined below) and to assign this Lease to an Affiliate having a
demonstrated net worth determined in accordance with generally accepted
accounting principles and credit rating which is equal to or greater than the
demonstrated net worth determined in accordance with generally accepted
accounting principles and credit rating of Tenant on the date of execution
hereof, without Landlord's consent. The term "Affiliate" as used herein shall
mean (i) any person or entity controlling, controlled by or under common control
with Tenant, or (ii) any corporation or other entity in which or with which
Tenant is merged or consolidated, or (iii) any person or entity which acquires
all or substantially all of the assets or stock of Tenant. The term "control"
shall mean the power directly or indirectly, by contract or otherwise, to direct
the management and policies of the applicable entity. Provided, however, (i) no
assignment or subletting shall relieve Tenant of any of its obligations and
liabilities to Landlord under this Lease (as same may be amended, modified,
assigned, extended or renewed) and Tenant shall remain fully liable for the
faithful performance of all covenants, terms and conditions of this Lease (as
same may be amended, modified, assigned, extended or renewed) on the part of
Tenant to be performed, (ii) such Affiliate of Tenant must be capable of
fulfilling the obligations of Tenant under this Lease (as same may be amended,
modified, assigned, extended or renewed), (iii) it must be demonstrated by
Tenant to Landlord's reasonable satisfaction that such merger, consolidation, or
transfer is being consummated for a valid business purpose, and not principally
for the purpose of transferring Tenant's interest in this Lease, and (iv) such

                                       23
<PAGE>   24

Affiliate of Tenant must execute an assignment and assumption agreement
reasonably acceptable to Landlord. Any such assignment agreement shall provide
that the assignee has assumed all of Tenant's obligations, liabilities and
agreements under this Lease and that this Lease may not be further assigned
without the prior written consent of Landlord, except as otherwise expressly
permitted by this Section 20.

         Seventy-five percent (75%) of any consideration (net of Tenant's
Transfer Costs, as defined below) in excess of the Base Rent and other charges
and sums due and payable by Tenant under this Lease, paid to Tenant by any
assignee of this Lease for its assignment, or by any sublessee under or in
connection with its sublease, or otherwise paid to Tenant by another party for
use and occupancy of the Premises or any portion thereof (any such excess amount
being herein called the "Transfer Profit"), shall be promptly remitted by Tenant
to Landlord as Additional Rent hereunder and Tenant shall have no right or claim
thereto as against Landlord. Landlord may require that any such Transfer Profit
paid by a subtenant or assignee be paid directly to Landlord as Additional Rent
as and when such sums are received. "Tenant's Transfer Costs" means the
outstanding balance from time to time of the sum of the following items: (1) the
reasonable cost of any additional tenant improvements required for the
assignment of this Lease or the subleasing of such portion of the Premises paid
by Tenant; (2) reasonable leasing commissions paid by Tenant in connection with
the assignment or sublease to the transferee, not to exceed the amount of such
commissions customarily payable with respect to the leasing of second-generation
office space in the metropolitan Atlanta area; (3) rent abatements and other
reasonable concessions granted by Tenant in connection with such assignment or
sublease; (4) reasonable marketing expenses paid directly by Tenant to assign
this Lease or sublease the space (to the extent not included in a brokerage
commission paid by Tenant); and (5) reasonable attorneys' fees incurred by
Tenant in connection with such assignment or sublease.

         If Tenant shall make any assignment of this Lease or shall make any
subletting hereunder in any way not authorized by the terms hereof, the
acceptance by Landlord of any rent from any person claiming as assignee,
subtenant or otherwise shall not be construed as a recognition of or consent to
such assignment or subletting or as a waiver of the right of Landlord thereafter
to collect any rent from Tenant, it being acknowledged that Landlord may at any
time accept rent under this Lease from any person offering to pay the same
without thereby acknowledging the person so paying as a Tenant in place of
Tenant hereinabove named, and without releasing said Tenant from the obligations
of this Lease, and without recognizing the claims under which such person offers
to pay said rent, but the same shall be taken to be a payment on account by
Tenant. In the event Landlord consents to an assignment or sublease, Tenant
shall pay to Landlord a fee to cover Landlord's accounting costs plus any
reasonable legal fees actually incurred by Landlord (at such attorneys' normal
and customary hourly rates) as a result of the assignment or sublease.

         Either Landlord or Tenant may require that any dispute of any matter
described pursuant to this Section 20 above be submitted to arbitration pursuant
to this paragraph. All arbitrations shall occur at a location in Atlanta,
Georgia, chosen by the arbitrators and shall be conducted pursuant to the rules
of the American Arbitration Association (or the successor organization, or if no
such organization exists, then from persons of similar professional
qualifications). The party desiring such arbitration shall give written notice
to that effect to the other party and simultaneously therewith also shall give
written notice to the American Arbitration Association, requesting such
organization to select, as soon as possible but in any event within the next ten
(10) days, three arbitrators who are unaffiliated with Landlord and Tenant with,
if reasonably possible, recognized expertise in the subject matter of the
arbitration and at least ten (10)

                                       24
<PAGE>   25

years experience in commercial real estate in Atlanta, Georgia in any capacity,
including without limitation as an attorney, broker, accountant, commercial
property owner or property management agent. Within three (3) working days after
the appointment of the arbitrators, each party shall have the right to object to
the appointment of one (1) of the arbitrators, which objection can only be based
on such arbitrator's failure to meet the selection criteria set forth above, and
to require that the American Arbitration Association select a substitute
arbitrator within five (5) days of such notice of objection to the American
Arbitration Association. Within ten (10) days after the original appointment,
the arbitrators so chosen shall hold a hearing at which each party may submit
evidence, be heard and cross-examine witnesses, with each party having at least
five (5) days advance notice of the hearing. The hearing shall be conducted such
that each of Landlord and Tenant shall have reasonably adequate time to present
oral evidence or argument, but either party may present whatever written
evidence its deems appropriate prior to the hearing (with copies thereof being
sent to the other party). In the event of the failure, refusal or inability of
any arbitrator to act, a new arbitrator shall be appointed in his stead, which
appointment shall be made in the same manner as hereinabove provided. The
decision of the arbitrators so chosen shall be given within a period of ten (10)
days after the conclusion of such hearing, and shall be accompanied by
conclusions of law and findings of fact. The decision in which any two
arbitrators so appointed and acting hereunder concur shall in all cases be
binding and conclusive upon the parties and shall be the basis for a judgment
entered in any court of competent jurisdiction. The fees and expenses of the
arbitration under this paragraph shall be borne equally by both parties;
provided, however, in the event the arbitrators conclude that Landlord withheld
its consent to a proposed assignment or subletting in bad faith (as opposed to a
conclusion that such consent was unreasonably withheld but made in good faith),
Landlord shall pay such fees and expenses. Landlord and Tenant may at any time
by mutual written agreement discontinue arbitration proceedings and themselves
agree upon any such matter submitted to arbitration. Tenant agrees that if
Tenant shall request Landlord's consent under this Lease and Landlord shall fail
or refuse to give such consent, Tenant shall not be entitled to any damages for
the withholding of its consent, it being intended that Tenant's sole remedy
shall be an action for specific performance or injunction and that such remedy
shall be available only in those cases where Landlord has expressly agreed in
writing not to unreasonably withhold its consent or where, as a matter of law,
Landlord may not unreasonably withhold its consent.

         21.      RECAPTURE UPON ABANDONMENT.

         In the event Tenant shall desert, vacate or not use on a regular or
consistent basis, any substantial portion of the Premises for a period of
twenty-four (24) or more consecutive months even though Tenant shall pay
stipulated Base Rent and Additional Rent, Landlord shall have the right, but not
the obligation to terminate this Lease, without declaring a default hereunder,
and recapture the Premises from Tenant upon not less than thirty (30) days'
written notice to Tenant, whereupon Tenant shall peacefully vacate and surrender
possession of the Premises as if the Term of this Lease had expired by its own
terms.

         22.      HAZARDOUS SUBSTANCES.

         Tenant hereby covenants and agrees that Tenant shall not cause or
permit any "Hazardous Substances" (as hereinafter defined) to be generated,
placed, held, stored, used, located or disposed of at the Project or any part
thereof, except for Hazardous Substances as are commonly and legally used or
stored as a consequence of using the Premises for office and administrative
purposes, but only so long as the quantities thereof do not pose a threat to
public health or to the environment or would necessitate a "response action", as
that term is defined in CERCLA (as hereinafter defined), and so long as Tenant
strictly complies or causes compliance with all applicable governmental rules
and regulations concerning the use, storage, production, transportation and
disposal of such Hazardous Substances. Promptly upon receipt of Landlord's
request, Tenant shall submit to Landlord true and correct copies of any reports
filed by Tenant with any governmental or quasi-governmental authority regarding
the generation, placement,

                                       25
<PAGE>   26

storage, use, treatment or disposal of Hazardous Substances on or about the
Project. For purposes of this Section, "Hazardous Substances" shall mean and
include those elements or compounds which are contained in the list of Hazardous
Substances adopted by the United States Environmental Protection Agency (EPA) or
in any list of toxic pollutants designated by Congress or the EPA or which are
defined as hazardous, toxic, pollutant, infectious (including infectious or
hazardous medical waste) or radioactive by any other federal, state or local
statute, law, ordinance, code, rule, regulation, order or decree regulating,
relating to or imposing liability (including, without limitation, strict
liability) or standards of conduct concerning, any hazardous, toxic or dangerous
waste, substance or material, as now or at any time hereinafter in effect
(collectively "Environmental Laws"). Tenant hereby agrees to indemnify Landlord
and hold Landlord harmless from and against any and all losses, liabilities,
including strict liability, damages, injuries, expenses, including reasonable
attorneys' fees, costs of settlement or judgment and claims of any and every
kind whatsoever paid, incurred or suffered by, or asserted against, Landlord by
any person, entity or governmental agency for, with respect to, or as a direct
or indirect result of, the presence in, or the disposal, escape, leakage,
spillage, discharge, emission or release from, the Project of any Hazardous
Substances (including, without limitation, any losses, liabilities, including
strict liability, damages, injuries, expenses, including reasonable attorneys'
fees, costs of any settlement or judgment or claims asserted or arising under
the Comprehensive Environmental Response, Compensation and Liability Act
["CERCLA"], any so-called federal, state or local "Superfund" or "Superlien"
laws or any other Environmental Law); provided, however, that the foregoing
indemnity is limited to matters arising solely from Tenant's violation of the
covenant contained in this Section. The obligations of Tenant under this Section
shall survive any expiration or termination of this Lease.

         Tenant shall not in any manner be liable for, required to contain,
remediate, remove or clean up, bear any costs or expenses regarding or have any
responsibility whatsoever with respect to, nor does Tenant indemnify Landlord or
any other party regarding, any hazardous or toxic substances, materials or
wastes or other environmental contaminants which either (a) were already on the
Premises prior to the Term of this Lease or (b) are bought, generated, emitted,
discharged, released, spilled or disposed of on or from the Premises at any time
whatsoever by any persons, entities or parties other than Tenant or Tenant's
employees, officers, servants, agents, contractors, subcontractors, assignees,
sublessees, licensees or invitees or persons employed by any of them.

         Tenant acknowledges that Landlord has delivered to Tenant a copy of
Landlord's Phase I Environmental Site Assessment for the Project, dated March
21, 1995 and prepared by Environmental Management Group, Inc. (the "Phase I
Report"). Tenant further acknowledges that the Phase I Report is being provided
to Tenant by Landlord as an accommodation to the Tenant and is provided without
recourse, representation or guaranty by Landlord or Environmental Management
Group, Inc., as to the accuracy or completeness of its contents or conclusions.
Tenant is not authorized to rely upon the Phase I Report or the information it
contains in any decision the Tenant may make concerning the Project. Under no
circumstances does Landlord recommend Tenant's reliance on the Phase I Report or
suggest that review of the Phase I Report constitutes appropriate inquiry into
the environmental condition of the Project.

                                       26
<PAGE>   27

         23.      DEFAULTS BY TENANT.

         The occurrence of any of the following shall constitute an event of
default hereunder by Tenant, in addition to those provided elsewhere in this
Lease:

         (a)      Tenant shall fail to pay any installment of rent hereby
reserved when due, including without limitation the Base Rent and any Additional
Rent, and such failure shall continue for a period of ten (10) days after
written notice of such failure to pay on the due date.

         (b)      Tenant fails to observe, perform and keep each and every of
the covenants, agreements, provisions, stipulations and conditions contained in
this Lease to be observed, performed and kept by Tenant, other than the payment
of Base Rent, Additional Rent and any other sum due and payable hereunder,
including without limitation the "Rules and Regulations" for the Project of
which the Premises is a part, and unless otherwise specified herein, Tenant
persists in such failure for thirty (30) days after written notice by Landlord
requiring that Tenant correct such failure; provided, that in the event any such
failure is not reasonably susceptible of cure within such thirty (30) day
period, Tenant shall have a reasonable time to cure such failure, provided
Tenant commences cure as soon as is reasonably possible and prosecutes such cure
diligently to completion.

         (c)      Tenant shall become insolvent, or shall make a transfer in
fraud of creditors, or shall make an assignment for the benefit of creditors.

         (d)      Any petition is held against Tenant, Tenant shall file a
petition for debt relief, under any section or chapter of the national or
federal bankruptcy code, as amended, or under any applicable federal or state
bankruptcy, insolvency or other similar act, and not dismissed or vacated within
sixty (60) days of the filing thereof, or Tenant shall be adjudged bankrupt or
insolvent in proceedings filed against Tenant thereunder.

         (e)      A receiver or trustee shall be appointed for all or
substantially any of the assets of Tenant.

         (f)      [Intentionally Omitted].

         (g)      [Intentionally Omitted].

         (h)      Tenant or any guarantor of this Lease shall make a material
misrepresentation to Landlord prior to or contemporaneously with the execution
of this Lease.

         (i)      A lien is filed against the Premises, Building or Project or
Landlord's estate therein by reason of any work, labor, services or materials
performed or furnished or alleged to have been performed or furnished by Tenant
or anyone holding the Premises by, through or under Tenant and Tenant fails to
have the same canceled of record, vacated or bonded within thirty (30) days
after filing thereof.

         24.      REMEDIES.

         Upon the occurrence of any such events described in Section 23 above,
Landlord shall have the option, but not the obligation, to do any one or more of
the following in addition to, and not in limitation of, any other remedy
permitted by law, in equity or by this Lease:

                                       27
<PAGE>   28

         (a)      Terminate this Lease, in which event Tenant shall surrender
the Premises to Landlord immediately upon expiration of thirty (30) days from
the date of the service upon Tenant of written notice to that effect, without
any further notice or demand; and further, that in case Landlord shall become
entitled to the possession of the Premises by any termination of this Lease
herein provided for, and Tenant shall refuse to surrender or deliver up the
possession of the Premises after the service of notice as aforesaid, then and in
that event Landlord may, without further notice or demand and without breach of
the peace, enter into and upon the Premises, or any part thereof, and take
possession of and repossess the same as of the Landlord's former estate, and
expel, remove and put out of possession Tenant and its effects, without
prejudice to any remedy allowed by law, available in such cases; and Tenant
shall indemnify Landlord for all loss, cost, expense and damage which Landlord
may suffer by reason of such termination, whether through inability to relet the
Premises, or through decrease in rent or otherwise;

         (b)      Terminate Tenant's right of possession (but not this Lease)
and enter upon and take possession of the Premises and expel or remove Tenant
and any other person who may be occupying the Premises or any part thereof, by
entry (including the use of force, if necessary), dispossessory suit or
otherwise, without thereby releasing Tenant from any liability hereunder,
without terminating this Lease, and without being liable for prosecution or any
claim of damages therefor and, if Landlord so elects, make such alterations,
redecorations and repairs as, in Landlord's judgment, may be necessary to relet
the Premises, and Landlord may, but shall be under no obligation to do so
(except to the extent specifically required by the laws of the State of
Georgia), relet the Premises or any portion thereof in Landlord's or Tenant's
name, but for the account of Tenant, for such term or terms (which may be for a
term extending beyond the Lease Term) and at such rental or rentals and upon
such other terms as Landlord may deem advisable, with or without advertisement,
and by private negotiations, and receive the rent therefor, Tenant hereby
agreeing to pay to Landlord the deficiency, if any, between all rent reserved
hereunder and the total rental applicable to the Lease Term hereof obtained by
Landlord re-letting, and Tenant shall be liable for Landlord's reasonable
expenses in redecorating and restoring the Demised Premises and all reasonable
costs incident to such re-letting, including broker's commissions and lease
assumptions, and in no event shall Tenant be entitled to any rentals received by
Landlord in excess of the amounts due by Tenant hereunder. Tenant shall remain
liable for the payment of all Base Rent, Additional Rent and other sums due and
payable hereunder accruing after any writ of possession as to the Premises is
issued to Landlord;

         (c)      Correct or cure such default and recover such amount expended,
together with interest thereon until paid at the Default Rate, and without
limiting the generality of the foregoing, Landlord shall have the right to enter
upon the Premises by force, if necessary, without being liable for prosecution
or any claim of damages therefor, and do whatever Tenant is obligated to do
under the terms of this Lease; and Tenant agrees to reimburse Landlord on demand
for any expenses including, without limitation, reasonable attorneys' fees which
Landlord may incur in thus effecting compliance with Tenant's obligations under
this Lease and Tenant further agrees that Landlord shall not be liable for any
damages resulting to Tenant from such action, unless caused by gross negligence
or intentional misconduct of Landlord;

         (d)      Recover any and all reasonable costs incurred by Landlord
resulting directly, indirectly, approximately or remotely from such default,
including but not limited to reasonable attorneys' fees.

         In the event of a default or threatened default of this Lease by
Tenant, Landlord shall be entitled to all equitable remedies, including without
limitation, injunction and specific performance.

         In the event Tenant fails to pay any installment of rent hereunder as
and when such installment is due, Tenant shall pay to Landlord on demand a late
charge in the amount equal to five percent (5%) of

                                       28
<PAGE>   29

such installment; and the failure to pay such late charge within ten (10) days
after written demand therefor shall be an event of default hereunder. The
provision for such late charge shall be in addition to all of Landlord's other
rights and remedies hereunder or at law and shall not be construed as liquidated
damages or as limiting Landlord's remedies in any manner.

         Pursuit of any of the foregoing remedies shall not preclude pursuit of
any of the other remedies herein provided or any other remedies provided by law,
nor shall pursuit of any remedy herein provided constitute a forfeiture or
waiver of any rent due to Landlord hereunder or of any damages accruing to
Landlord by reason of the violation of any of the terms, provisions and
covenants herein contained. No waiver by Landlord of any violation or breach of
any of the terms, provisions and covenants herein contained shall be deemed or
construed to constitute a waiver of any other violation or breach of any of the
terms, provision and covenants herein contained. Landlord's acceptance of the
payment of rental or other payments hereunder after the occurrence of an event
of default shall not be construed as a waiver of such default, unless Landlord
so notifies Tenant in writing. Forbearance by Landlord to enforce one or more of
the remedies herein provided upon an event of default shall not be deemed or
construed to constitute a waiver of such default. If on account of any breach or
default by Tenant in Tenant's obligation under the terms and conditions of this
lease, it shall become necessary or appropriate for Landlord to employ or
consult with an attorney concerning or to enforce or defend any of Landlord's
rights or remedies hereunder, Tenant agrees to pay any reasonable attorney's
fees. No act or thing done by the Landlord or its agents during the term hereby
granted shall be deemed an acceptance of the surrender of the Premises, and no
agreement to accept a surrender of the Premises shall be valid unless in writing
signed by Landlord. The receipt by Landlord of rent with knowledge of the breach
of any covenant or other provision contained in this lease shall not be deemed
or construed to constitute a waiver of any other violation or breach of any of
the terms, provisions and covenants contained herein.

         No termination of this Lease prior to the normal ending thereof by
lapse of time or otherwise shall affect Landlord's rights to collect sums due
hereunder for the period prior to termination thereof.

         In the event Landlord owes any sums to Tenant pursuant to the terms of
this Lease, and the same are not timely paid or credit to Tenant as provided
herein, Landlord agrees that such sums shall accrue interest until paid or
credited at the Default Rate.

         25.      FORCE MAJEURE.

         In the event that either party hereto shall be delayed or hindered in
or prevented from the performance of any act required hereunder or the
completion or performance of any work required hereunder by reason of strikes,
lock-outs, labor troubles, civil commotion, inability to procure materials,
failure of power, restrictive government laws or regulation, riots,
insurrection, war, acts of God or other reason beyond the reasonable control of
such party (other than inability to obtain funds), then performance or
completion of such act or work shall be extended for a period equivalent to the
period of such delay (hereinafter sometimes referred to as "Force Majeure
Delay"). The provisions of this Section shall not cancel or postpone or delay
the due date of any payment to be made by Tenant hereunder, or operate to excuse
Tenant from prompt payment of Base Rent, Additional Rent or any other amount due
required by the terms of this Lease.

                                       29
<PAGE>   30

         26.      ATTORNEYS' FEES.

         In the event either party institutes legal proceedings against the
other for breach of or interpretation of any of the terms, conditions or
covenants of this Lease, the party against whom a judgment is entered shall pay
all reasonable costs and expenses relative thereto, including reasonable
attorneys' fees of the prevailing party. Further, in the event Landlord engages
the services of an attorney to collect any rent due or recovery of the
possession of the Premises from Tenant, Tenant agrees to pay Landlord reasonable
attorney's fees and expenses for the services of the attorney, whether suit is
actually filed or not and other reasonable costs of collection.

         27.      ESTOPPEL CERTIFICATE.

         Tenant shall, at any time and from time to time, upon not less than
fifteen (15) days' prior written notice from Landlord, execute, acknowledge and
deliver to Landlord a statement in writing certifying that this Lease is
unmodified and in full force and effect (or if modified, stating the nature of
such modification and certifying that this Lease, as so modified, is in full
force and effect) and the dates to which the rent and other charges are paid,
and acknowledging that Tenant is paying rent on a current basis with no offsets
or claims, and that there are not, to Tenant's knowledge, any uncured defaults
on the part of Landlord hereunder (or specifying such offsets, claims or
defaults, if any are claimed) and such other information reasonably required by
Landlord. It is expressly understood and acknowledged that any such statement
may be relied upon by any prospective purchaser or encumbrancer of all or any
portion of the Project or by any other person to whom it is delivered.

         Landlord shall, at any time and from time to time, but not more often
than three (3) times in any calendar year during the Term, upon not less than
fifteen (15) days' prior written notice from Tenant, execute, acknowledge and
deliver to Tenant a statement in writing certifying that this Lease is
unmodified and in full force and effect (or if modified, stating the nature of
such modification and certifying that this Lease, as so modified, is in full
force and effect) and the dates to which the rent and other charges are paid,
and that there are not, to Landlord's knowledge, any uncured defaults on the
part of Tenant hereunder (or specifying such default, if any) and such other
information reasonably required by Tenant. It is expressly understood and
acknowledged that any such statement may be relied upon by any prospective
assignee or sublessee of all or any portion of the Premises or by any other
person to whom it is delivered.

         28.      SUBORDINATION.

         This Lease and Tenant's interest hereunder shall at all times be
subject and subordinate to the lien and security title of any deeds to secure
debt, deeds of trust, mortgages or other interests heretofore or hereafter
granted by Landlord or which otherwise encumber or affect the Premises and to
any and all advances to be made thereunder and to all renewals, modifications,
consolidations, replacements, substitutions and extensions thereof (all of which
are hereinafter called the "Mortgage"). This clause shall be self-operative and
no further instrument of subordination need be required by any holder of any
Mortgage. In confirmation of such subordination, however, Tenant shall, at
Landlord's reasonable request, promptly execute, acknowledge and deliver any
instrument which may be reasonably required to evidence subordination to any
Mortgage and to the holder thereof, and, in the event of a failure so to do,
Tenant shall be in default of this Lease.

                                       30
<PAGE>   31

         Landlord shall obtain and deliver to Tenant from the holder of any
Mortgage superior to this Lease (a "Superior Interest") a commercially
reasonable, written subordination, non-disturbance and attornment agreement
("SNDA") in recordable form providing in essence that so long as Tenant performs
all of the terms, covenants and conditions of this Lease and agrees to attorn to
the mortgagee, beneficiary of the deed of trust, purchaser at a foreclosure
sale, prime lessor or fee owner, Tenant's rights under this Lease shall not be
disturbed and shall remain in full force and effect for the Term, and Tenant
shall not be joined by the holder of any Mortgage unless required by law. Tenant
acknowledges and agrees that Tenant shall, without limitation, execute and
deliver the form of SNDA attached hereto as Exhibit "E", or such other
commercially reasonable form of SNDA which may be required by any present or
future mortgagee, trustee, fee owner, prime lessor or any person having a
Superior Interest to this Lease. Landlord represents and warrants that, as of
the date hereof, the only Superior Interest to this Lease is that certain deed
to secure debt made and entered into by Landlord in favor of Century Life
Insurance Company. Tenant acknowledges and confirms that the form of SNDA
attached hereto as Exhibit "E" is acceptable to Tenant and Tenant agrees to
execute and deliver such SNDA to Landlord and any mortgagee upon request.

         Subject to the terms of the SNDA among Landlord, Tenant and the holder
of any Mortgage, if the holder of any Mortgage shall hereafter succeed to the
right of Landlord under this Lease, whether through possession or foreclosure
action or otherwise, Tenant shall attorn to and recognize such successor as
Tenant's Landlord under this Lease and shall promptly execute and deliver any
instrument that may be necessary to evidence such attornment. Upon such
attornment, this Lease shall continue in full force and effect as a direct Lease
between such successor Landlord and Tenant, subject to all of the terms,
covenants and conditions of this Lease. In the event of a sale or conveyance by
Landlord of Landlord's interest in the Premises other than a transfer for
security purposes only, Landlord shall be relieved, from and after the date of
transfer, of all obligations and liabilities accruing thereafter on the part of
Landlord, provided that (i) any funds in the hands of Landlord at the time of
transfer in which Tenant has an interest shall be delivered to the successor of
Landlord and (ii) subject to the terms of the SNDA among Landlord, Tenant and
the holder of any Mortgage, the purchaser or assignee has assumed in writing all
obligations of Landlord under this Lease arising after the date of the transfer.
This Lease shall not be affected by any such sale and Tenant shall attorn to the
purchaser or assignee.

         29.      DEFINITIONS.

         These definitions apply to the terms defined as those terms are used
throughout this Lease:

         (a)      "Abandon" means the vacating of all or a substantial portion
of the Premises by Tenant, whether or not Tenant is in default of the rental
payments due under this Lease.

         (b)      An "act of God" or "force majeure" or "Force Majeure" is
defined for purposes of this Lease as strikes, lockouts, sit-downs, material or
labor restrictions by a governmental authority, riots, floods, washouts,
explosions, earthquakes, fire, storms, acts of the public enemy, wars,
insurrections and any other cause not reasonably within the control of Landlord
and which by the exercise of due diligence Landlord is unable, wholly or in
part, to prevent or overcome.

         (c)      The "Commencement Date" shall be the date set forth in Section
2. The Commencement Date shall constitute the commencement of this Lease for all
purposes. The Commencement Date is subject to delay as provided in Section 3 of
Exhibit "B."

                                       31
<PAGE>   32

         (d)      The "Completion Date" is defined in provided in Section 3 of
Exhibit "B." In the event that the improvements have not in fact been
substantially completed for occupancy as of January 1, 2001, Landlord shall not
be liable to Tenant for any loss or damage, except for any applicable liquidated
damages as expressly and specifically provided in Section 2 above.

         30.      SUCCESSORS.

         This Lease shall be binding and inure to the benefit of Landlord and
Tenant and their respective heirs, personal representatives, successors and
assigns, subject always in the case of Tenant to the provisions of Section 20
above. It is hereby covenanted and agreed that should Landlord's interest in the
Premises cease to exist for any reason during the Term of this Lease, then
notwithstanding the happening of such event this Lease nevertheless shall remain
unimpaired and in full force and effect and Tenant hereunder agrees to attorn to
the then owner of the Premises.

         31.      ENTIRE AGREEMENT.

         Tenant acknowledges that there are no covenants, representations,
warranties or conditions, express or implied, collateral or otherwise, forming
part of or in any way affecting or relating to this Lease save as expressly set
out in this Lease. This Lease, including all attachments, exhibits and schedules
attached hereto (all of which are incorporated herein by reference), contains
the entire agreement between the parties. No failure of Landlord to exercise any
power given Landlord hereunder or to insist upon strict compliance by Tenant of
any obligation hereunder and no custom or practice of the parties at variance
with the terms hereof shall constitute a waiver of Landlord's right to demand
strict compliance with the terms hereof.

         32.      NOTICE.

         (a)      All rent and other payments required to be made by Tenant
shall be payable to Landlord at the address set forth below or any other address
Landlord may specify from time to time by at least twenty (20) days' written
notice delivered to Tenant.

         (b)      All payments required to be made by Landlord to Tenant shall
be payable to Tenant at the address set forth below, or at any other address
within the United States as Tenant may specify from time to time by written
notice.

         (c)      All notices required or permitted to be given hereunder shall
be in writing. Any demand, notice or document required or permitted to be
delivered by this Lease shall be deemed to be delivered (whether or not actually
received) on the third (3rd) day after the same is deposited in the United
States Mail, postage prepaid, certified mail, return receipt requested, or the
first business day after being sent by nationally recognized overnight courier
(e.g., Federal Express), as evidenced by a signed receipt therefor, or when
hand-delivered, addressed to the parties at the respective addresses set out
below.

           Landlord:                              Tenant:
                                                  (After the Commencement Date)
           Spalding Triangle, L.L.C.              Serologicals Corporation
           c/o ELV Associates, Inc.               5655 Spalding Drive
           1819 Peachtree Street, N.E.            Norcross, Georgia 30092
           Suite 610                              Attn: Chief Financial Officer
           Atlanta, Georgia 30309

                                       32
<PAGE>   33

                                                  (Before the Commencement Date)
                                                  Serologicals Corporation
                                                  780 Park North Boulevard
                                                  Suite 110
                                                  Atlanta, Georgia 30021
                                                  Attn: Chief Financial Officer

         33.      REAL ESTATE COMMISSION and AGENCY DISCLOSURE.

         Important notice concerning agency relationships and payment of
commissions and fees:

         (a)      Lavista Associates, Inc. ("Lavista") has acted as agent for
the Landlord in this transaction and is to be paid a commission by Landlord upon
and subject to the terms and conditions of a written agreement between Landlord
and Lavista. Lavista has not acted as agent in this transaction for the Tenant.

         (b)      Icon Commercial Interests, L.L.C. ("Icon") has acted as agent
for the Tenant in this transaction and is to be paid a commission by Landlord
upon and subject to the terms and conditions of a written agreement between
Landlord and Icon. Icon has not acted as agent for Landlord in this transaction
for the Landlord. Icon and Lavista are herein sometimes collectively referred to
as "Brokers."

         (c)      Landlord and Tenant each represent to the other that they have
dealt with no broker, agent or finder in connection with this Lease other than
Brokers. Landlord and Tenant each hereby indemnify the other and agree to hold
the other harmless from and against any and all claims, causes, demands, losses,
liabilities, fees, commissions, settlements, judgments, damages, expenses and
fees (including attorney's fees and court costs) in connection with any claim
for commission, fees, compensation or other charge relating in any way to this
Lease, or to the consummations of the transactions contemplated hereunder, which
may be made by any person, firm or entity (other than Brokers) based upon any
agreement or agreements made or alleged to have been made by such party or its
representatives. The provisions of this Section shall survive termination or
expiration of this Lease.

         34.      SURVIVAL.

         Any claim, cause of action, liability or obligation arising under the
Term of this Lease and under the provisions hereof in favor of a party hereto
against or obligating the other party hereto shall survive the expiration or any
earlier termination of this Lease. Provided, however, Landlord shall have no
right to commence an action against Tenant after the second anniversary of the
end of the term of this Lease for Tenant's failure to pay Base Rent, CAM
Charges, Tax Charges or Insurance Charges.

         35.      SEVERABILITY.

         The terms, conditions, covenants and provisions of this Lease shall be
deemed to be severable. If any clause or provision herein contained shall be
adjudged to be invalid or unenforceable by a court of competent jurisdiction or
by operation of any applicable law, it shall not affect the validity of any
other clause or provision herein, but such other clauses or provisions shall
remain in full force and effect.

                                       33
<PAGE>   34

         36.      EXTERIOR COMMON AREAS.

         Tenant acknowledges and agrees that the Common Areas of the Building
including, without limiting the generality of the foregoing, lawns, gardens,
parking areas, sidewalks, and driveways, shall at all times be subject to
Landlord's right to change the area, level, location and arrangement of the
Common Areas so long as in so doing Landlord does not materially and adversely
affect ingress to and egress from the Building. Landlord shall have the right
from time to time to close all or any portion of the same to such extent as may
in the opinion of Landlord's counsel be legally sufficient to prevent a
dedication thereof or the accrual or creation of any rights to any person or the
public therein, and to obstruct or close off any or all of the exterior Common
Areas for the purposes of maintenance or repair and to do and perform such other
acts and things in and to the Common Areas as, in the use of good business
judgement, Landlord deems desirable. Tenant, for itself, its servants, agents,
employees, contractors, subcontractors, licensees and invitees, covenants,
acknowledges and agrees that its indemnification of Landlord set forth herein
shall extend to and include any occurrence upon or within the exterior Common
Areas, including the parking lot, and the insurance required to be obtained and
maintained in force by Tenant shall extend to and include occurrences involving
Tenant, its servants, agents, employees, contractors, subcontractors, licensees
and invitees upon or within the exterior Common Areas of the Building, including
the parking lots, to the fullest extent of Landlord's insurable interest
therein.

         37.      RECORDING.

         Neither this Lease, nor any portion hereof, shall be recorded.

         38.      TIME IS ESSENCE.

         Time is of the essence of this Lease.

         39.      NO ESTATE IN LAND.

         This Lease shall create the relationship of landlord and tenant between
Landlord and Tenant, and nothing contained herein shall be deemed or constructed
by the parties hereto, or by any third party, as creating the relationship of
principal and agent, or of partnership, or of joint venture, or of any
relationship other than landlord and tenant, between the parties hereto; no
estate shall pass out of Landlord; Tenant has only a usufruct not subject to
levy and sale.

         40.      LIMITATION OF LIABILITY.

         Excepting for the gross negligence or willful misconduct of Landlord,
its agents and employees, and to the extent not covered by Tenant's insurance,
Landlord shall not be liable to Tenant in any manner whatsoever for failure or
delay in furnishing any service required of Landlord, if any, provided for in
this Lease, and no such failure or delay to furnish any service or services by
Landlord shall be an actual or constructive eviction of Tenant nor shall any
such event operate to relieve Tenant from the prompt and punctual performance of
each and all the covenants to be performed herein by Tenant; nor shall Landlord
be liable to Tenant for damage to person or property caused by defects in the
cooling, heating, electric, water, elevator or other apparatus or systems or by
water discharged from sprinkler systems, if any, in the Building; nor shall
Landlord be liable to Tenant for the theft, or loss of any property of Tenant
whether from the Premises or any part of the Building or property adjoining the
Building containing the Premises. Landlord agrees to make reasonable efforts to
protect Tenant from interference or disturbance of third persons including other
tenants, however, Landlord shall not be liable

                                       34
<PAGE>   35

for any such interference or disturbance whether caused by another tenant or
tenants or Landlord or other person, nor shall Tenant be relieved from any
obligation herein because of such interference, disturbance or breach.
Notwithstanding anything contained in this Lease to the contrary, Landlord's
liability under this Lease shall be limited solely to fifty-four percent (54%)
of Landlord's equity interest in the Project, as such equity interest is
constituted from time to time, including the proceeds of the sale or other
transfer thereof, and Landlord shall not have any personal liability with
respect to this Lease.

         41.      MISCELLANEOUS.

         Words of any gender used in this Lease shall be held and construed to
include any other gender, and words in the singular number shall be held to
include the plural unless the context otherwise requires. The captions are
inserted in this Lease for convenience only, and in no way define, limit or
describe the scope or intent of this Lease, or of any provision hereof, nor in
any way affect the interpretation of this Lease. This Lease is made and
delivered in the State of Georgia and shall be governed by and construed in
accordance with the laws of the State of Georgia. The submission or delivery of
this document for examination and review does not constitute an option, an offer
to lease space in the Building or an agreement to lease. This document shall
have no binding effect on the parties unless and until executed by both Landlord
and Tenant. This Lease may be executed in any number of counterparts, each of
which shall be deemed an original and any of which shall be deemed to be
complete in itself and may be introduced into evidence or used for any purpose
without the production of the other counterparts.

         42.      HOLDING OVER.

         If Tenant remains in possession of all or any portion of the Premises
after the expiration or earlier termination of the Term of this Lease, without
Landlord's acquiescence and without any distinct written agreement of the
parties, Tenant shall be a Tenant at sufferance, and there shall be no renewal
of this Lease by operation of law. During the initial 30 days of such holdover
period, Tenant shall pay holdover rent equal to 125% of the amount of the last
Base Rent and Additional Rent due from Tenant prior to such holdover. During the
balance of any such holdover period, Tenant shall pay holdover rent equal to
150% of the amount of the last Base Rent and Additional Rent due from Tenant
prior to such holdover. The inclusion of the two immediately preceding sentences
shall not be construed as Landlord's consent for Tenant to hold over.

         43.      SURRENDER OF LEASED PREMISES.

         Subject to the provisions of Section 12 above, at the termination of
this Lease, Tenant shall surrender the Premises and keys thereto to Landlord in
same condition as at commencement of the Lease Term, normal wear and tear only
excepted.

         44.      RULES AND REGULATIONS.

         The rules and regulations with regard to the Project, annexed hereto,
and all reasonable rules and regulations which Landlord may hereafter, from time
to time, adopt and promulgate for the government and management of said Project
on a non-discriminatory basis, are hereby made a part of this Lease as Exhibit
"D" and shall, during the Term of this Lease, be in all things observed and
performed by Tenant and by Tenant's employees, servants and agents.

                                       35
<PAGE>   36

         45.      [INTENTIONALLY OMITTED].

         46.      AUTHORITY.

         If Tenant is a corporation, each individual executing this Lease on
behalf of said corporation represents and warrants that he is duly authorized to
execute and deliver this Lease on behalf of said corporation, in accordance with
the bylaws and resolutions of said corporation, and that this Lease is binding
upon said corporation.

         47.      SPECIAL STIPULATIONS.

         The special stipulations attached hereto as Exhibit "C" are hereby
incorporated herein by this reference as though fully set forth. To the extent
the special stipulations conflict with or are inconsistent with the foregoing
provisions of this Lease or any exhibit to this Lease, the special stipulations
shall control.

         IN WITNESS WHEREOF, the parties herein have hereunto set their hands
and seals as of the 6th day of October, 2000.

Signed, sealed and delivered
in the presence of:                         Tenant: SEROLOGICALS CORPORATION,
                                                    a Delaware corporation

                                            By:
----------------------------------             ---------------------------------
Witness                                     Title:
                                                  ------------------------------

                                            Attest:
----------------------------------                 -----------------------------
Notary Public                               Title:
                                                  ------------------------------

                                                         [CORPORATE SEAL]
----------------------------------
Date

[Signature of Landlord follows on Next Page]

                                       36
<PAGE>   37

                   [Signatures Continued from Preceding Page]

Signed, sealed and delivered                Landlord: SPALDING TRIANGLE, L.L.C.,
in the presence of:                         a Georgia limited liability company

                                            By:
----------------------------------             ---------------------------------
Witness                                     Title:
                                                  ------------------------------

----------------------------------
Date

                                       37
<PAGE>   38

                                   EXHIBIT "A"
                       FLOOR PLAN OF INTERIOR OF PREMISES

                      [Attach prior to execution of Lease]

                                       38
<PAGE>   39

                                    EXHIBIT B
                          TENANT IMPROVEMENT AGREEMENT

1.       INITIAL IMPROVEMENTS. Notwithstanding anything to the contrary
contained or implied in this Lease, except as otherwise expressly and
specifically provided in this Lease, (i) Tenant agrees that it is leasing the
Premises in an "as is, where is" condition, and that no representations,
warranties, or inducements, with respect to any condition of the Premises have
been made by Landlord, or its designated representatives, to Tenant, or its
designated representatives, and (ii) Tenant hereby acknowledges that no promises
to decorate, alter, repair or improve the Premises, either before or after the
execution of this Lease have been made to Tenant, or its designated
representatives, by Landlord, or its designated representatives. Landlord shall
cause to be performed the improvements (the "Initial Improvements") in the
Premises in accordance with the Plans (as such term is hereinafter defined). As
used herein, the term "Plans" means and refers to those certain plans and
specifications prepared by Crowley & Luckett Architects, Inc., dated September
19, 2000 (Project number 20168, sheets A-1 through A-6), approved by Tenant
(initialed by Tenant on September 20, 2000) and Landlord. The Initial
Improvements shall be performed at the Landlord's cost, except as otherwise
provided below.

         Landlord's approval of any of the Plans (or any modifications or
changes thereto) shall not impose upon Landlord or its agents or representatives
any obligation with respect to the design of the Initial Improvements or the
compliance of such Initial Improvements or the Plans with applicable
governmental requirements.

         Landlord shall select a contractor (the "Contractor") to perform the
construction of the Initial Improvements. Landlord shall use commercially
reasonable efforts (which may include, but need not necessarily require, the use
of overtime labor), to cause the Initial Improvements to be substantially
completed, except for minor "Punch List" items, on or before January 1, 2001,
subject to Tenant Delay (as defined below) and Force Majeure.

         Landlord, or an agent of Landlord, shall provide project management
services in connection with the construction of the Initial Improvements and the
Change Orders (hereinafter defined), if any. Such project management services
shall be performed, at Tenant's cost, for a fee of five percent (5%) of all
costs related to the construction of any Change Orders.

2.       CHANGE ORDERS. If, prior to the Commencement Date, Tenant shall require
improvements or changes (individually or collectively, "Change Orders") to the
Premises in addition to, revision of or substitution for the Initial
Improvements, Tenant shall deliver to Landlord for its reasonable approval plans
and specifications for such Change Orders. If Landlord does not approve of the
plans for Change Orders, Landlord shall advise Tenant of the revisions required.
Tenant shall revise and redeliver the plans and specifications to Landlord
within five (5) business days of Landlord's advice or Tenant shall be deemed to
have abandoned its request for such Change Orders. Tenant shall pay to Landlord
upon demand as Additional Rent for all preparations and revisions of plans and
specifications relating to Change Orders and for the construction of all Change
Orders. Landlord has no obligation to pay for costs of any Change Orders. Tenant
shall pay such costs to Landlord as Additional Rent prior to commencement of
construction of Change Orders.

                                       39
<PAGE>   40

3.       COMMENCEMENT DATE DELAY. The Commencement Date shall be delayed until
the Initial Improvements have been substantially completed (the "Completion
Date"), except to the extent that the delay shall be caused by any one or more
of the following (a "Tenant Delay"):

(a)      Tenant's request for Change Orders whether or not any such Change
Orders are actually performed; or

(b)      Contractor's performance of any Change Orders; or

(c)      Tenant's request for materials, finishes or installations requiring
unusually long lead times (it being agreed by Landlord that, provided that
Tenant makes selections of materials and finishes from Landlord's existing list
of Building standard items that are currently available, the initially approved
Plans do not require materials, finishes or installations requiring unusually
long lead times); or

(d)      [Intentionally Omitted]; or

(e)      Tenant's delay in providing information necessary to the normal
progression of the project. Tenant shall provide such information not later than
three business days after receipt of such request for information from the
Landlord; or

(f)      Tenant's delay beyond applicable notice and cure periods in making
payments to Landlord for costs of Change Orders; or

(g)      Any other act or omission by Tenant, its agents, contractors or persons
employed by any of such persons; or

(h)      Tenant's failure to duly execute and unconditionally execute this Lease
to Landlord on or before October 6, 2000.

If the Commencement Date is delayed for any of the aforementioned reasons, then
Landlord shall cause Landlord's architect to certify the date on which the
Initial Improvements would have been completed but for such Tenant Delay, or
were in fact completed without any Tenant Delay. Landlord or Landlord's agent,
Dean Weaver of LaVista Associates, shall notify Tenant of any Tenant Delay
within five (5) days of the occurrence of the event causing such delay, unless
Tenant is already aware or should have been aware of the existence of such
Tenant Delay, it being the intention that such requirement to give notice shall
be applicable only in circumstances that Tenant would not reasonably be expected
to know that an event has caused or will cause a Tenant Delay. If Landlord or
Landlord's agent fails to timely give such notice of a Tenant Delay in
circumstances that Tenant would not reasonably be expected to know that an event
has caused or will cause a Tenant Delay, such failure shall result in the delay
not being a Tenant Delay. Landlord and Tenant expressly agree that,
notwithstanding anything to the contrary in Section 32 of the Lease, (i) for
purposes of providing notices to Tenant of a Tenant Delay, Landlord shall be
permitted to send such notices to Tenant via facsimile to Tenant at facsimile
number 404.297.8588, Attn: Mr. Samuel Schwartz, and via any other method
specifically permitted for the delivery of notices under this Lease, at the
following address: Serologicals Corporation, 780 Park North Boulevard, Suite
110, Atlanta, Georgia 30021, Attn: Mr. Samuel Schwartz, and (ii) any such notice
sent by facsimile only shall be deemed sufficient notice.

4.       ACCESS BY TENANT PRIOR TO COMMENCEMENT OF TERM. Landlord at its
discretion may permit Tenant and its agents to enter the Premises prior to the
Commencement Date to prepare

                                       40
<PAGE>   41

the Premises for Tenant's use and occupancy. Any such permission shall
constitute a license only, conditioned upon Tenant's:

(a)      working in harmony with Landlord and Landlord's agents, contractors,
workmen, mechanics and suppliers and with other tenants and occupants of the
Project;

(b)      obtaining in advance Landlord's approval of the contractors proposed to
be used by Tenant and delivering to Landlord the contractor's affidavit of
payment for the proposed work and the waivers of lien from the contractor and
all subcontractors and suppliers of material; and

(c)      furnishing Landlord with such insurance as Landlord may require against
liabilities which may arise out of such entry.

Landlord shall have the right to withdraw or limit such license for cause upon
two (2) business days' written notice to Tenant (or immediately in the case of a
hazardous condition or emergency situation). Landlord shall not be liable in any
way for any injury, loss or damage which may occur to any of Tenant's property
or installations in the Premises prior to the Commencement Date, unless arising
as a result of Landlord's gross negligence or intentional misconduct. Tenant
shall protect, defend, indemnify and save harmless Landlord from all
liabilities, costs, damages, fees and expenses arising out of the activities of
Tenant or its agents, contractors, suppliers or workmen in the Premises or the
Project. Any entry and occupation permitted under this Section shall be governed
by all other terms of this Lease.

5.       MISCELLANEOUS.

Terms used in this Exhibit B shall have the meanings assigned to them in the
Lease. The terms of this Exhibit B are subject to the terms of the Lease. If
either party hereto reasonably believes that there is a good faith dispute
concerning the obligations of the other party under this Exhibit "B", such party
may (but shall be under no obligation to) give the other party written notice of
any such dispute within three (3) days after the party giving notice becomes
aware of the existence of such dispute. If the parties are unable, after good
faith negotiations, to resolve such dispute within three (3) working days after
the second party's receipt of such notice, the matter shall be submitted to and
conclusively resolved by an architect selected by mutual agreement of Landlord
and Tenant within two (2) working days after the end of such second three
working day period. If Landlord and Tenant cannot mutually agree upon such
architect within such two day period, then the Landlord's architect for the
Initial Improvements shall select the architect.

                                       41
<PAGE>   42

                                   EXHIBIT "C"
                              SPECIAL STIPULATIONS

1.       RENEWAL OPTION.

         (a)      Provided this Lease is in full force and effect and Tenant
shall not have been in default of any of its agreements, obligations, duties, or
covenants under this Lease beyond applicable notice and cure periods more than
twice during the Term of this Lease, and further provided that Tenant shall not
then be in default of any of its agreements, obligations, duties, or covenants
under this Lease beyond applicable notice and cure periods at the time of its
exercise of the below described Renewal Option, Tenant is hereby granted the
option to renew (the "Renewal Option") the Term of this Lease for one period of
five (5) additional years (the "Renewal Term"). Tenant shall exercise the
Renewal Option by delivering irrevocable written notice of such election to
Landlord at least six (6) months, but not more than nine (9) months, prior to
the expiration of the initial Term of this Lease. The renewal of this Lease
shall be upon the same terms and conditions of this Lease, except (i) the Base
Rent during the Renewal Term shall be calculated based on the prevailing Market
Base Rental Rate (as such term is defined below) at the time the Renewal Term
commences (provided in no event shall the Base Rent be less than 95% of the then
prevailing Base Rent reserved in this Lease at the expiration of the initial
Lease Term), (ii) Tenant shall have no option to renew this Lease beyond the
expiration of the Renewal Term, (iii) Tenant shall not have the right to assign
its renewal rights to any sublessee of all or any portion of the Premises or
assignee of this Lease (except with respect to an Affiliate assignee or, in the
event and only in the event that there has been a permitted assignment of this
Lease during the last two years of the initial Lease Term, a non-Affiliate
assignee), nor may any such sublessee or assignee (other than an Affiliate
assignee or, in the event and only in the event that there has been a permitted
assignment of this Lease during the last two years of the initial Lease Term, a
non-Affiliate assignee) exercise or enjoy the benefit of such renewal rights,
(iv) the leasehold improvements will be provided in their then-existing
condition (on an "as is" basis in the broadest sense of the term) at the time
the Renewal Term commences, and (v) there shall not be any rent abatement period
and Tenant shall not be entitled to cash payment or allowance of any nature or
amount whatsoever. If Tenant shall fail to exercise the Renewal Option within
the time permitted, or the conditions set forth above are not entirely
satisfied, the Renewal Option shall automatically terminate, this Lease shall
expire at the expiration of the initial Lease Term and Tenant shall have no
further right thereafter to renew this Lease or to acquire any interest
whatsoever in the Premises. If Tenant shall remain in possession of the Premises
after the expiration of the original Term without there having been executed
between Landlord and Tenant an amendment to this Lease as contemplated by the
terms of this Section, then Tenant shall be a Tenant holding over as provided in
this Lease. Whenever used in this Lease, the term "Market Base Rental Rate"
shall mean the then prevailing annual rental rate per square foot (exclusive of
expense pass-through additions) of rentable area then being charged in
comparable office buildings located in the Peachtree Corners submarket of
Atlanta, Georgia, for space comparable to the space for which the Market Base
Rental Rate is being determined (taking into consideration use, location and/or
floor level within the applicable building, the definition of rentable area,
leasehold improvements provided, remodeling credits or allowances granted,
quality, age and location of the applicable building, rental concessions (such
as abatements or lease assumptions), the provision of free or paid unassigned
parking, the time the particular rate under consideration became effective, size
of tenant, relative operating expenses, relative services provided, etc.). It is
agreed that bona fide written offers to lease comparable space located elsewhere
in the Project from unaffiliated third parties (at arms length) may be used by
Landlord as an indication of Market Base Rental Rate.

                                       42
<PAGE>   43

         (b)      Market Base Rental Rate shall be determined as follows:

         (i) If Tenant provides Landlord with its binding notice of exercise
pursuant to Subsection (a) above, then within thirty (30) days after the date of
Landlord's receipt of Tenant's election to exercise the Renewal Option, Landlord
shall calculate and inform Tenant of the Market Base Rental Rate. If Tenant
rejects the Market Base Rental Rate as calculated by Landlord, Tenant shall
inform Landlord of its rejection within ten (10) days after Tenant's receipt of
Landlord's calculation, and Landlord and Tenant shall commence negotiations to
agree upon the Market Base Rental Rate. If Tenant fails to timely reject
Landlord's calculation of the Market Base Rental Rate it will be deemed to have
accepted such calculation. If Landlord and Tenant are unable to reach agreement
within twenty-one (21) days after Landlord's receipt of Tenant's notice of
rejection, then the Market Base Rental Rate shall be determined in accordance
with (ii) below.

         (ii) If Landlord and Tenant are unable to reach agreement on the Market
Base Rental Rate within said twenty-one (21) day period, then within seven (7)
days, Landlord and Tenant shall each simultaneously submit to the other in a
sealed envelope its good faith estimate of the Market Base Rental Rate. If the
higher of such estimates is not more than one hundred five percent (105%) of the
lower, then the Market Base Rental Rate shall be the average of the two.
Otherwise, the dispute shall be resolved by arbitration in accordance with (iii)
and (iv) below.

         (iii) Within seven (7) days after the exchange of estimates, the
parties shall select as an arbitrator an independent MAI appraiser with at least
five (5) years of experience in appraising office space in the metropolitan area
in which the Project is located (a "Qualified Appraiser"). If the parties cannot
agree on a Qualified Appraiser, then within a second period of seven (7) days,
each shall select a Qualified Appraiser and within ten (10) days thereafter the
two appointed Qualified Appraisers shall select a third Qualified Appraiser and
the third Qualified Appraiser shall be the sole arbitrator. If one party shall
fail to select a Qualified Appraiser within the second seven (7) day period,
then the Qualified Appraiser chosen by the other party shall be the sole
arbitrator.

         (iv) Within twenty-one (21) days after submission of the matter to the
arbitrator, the arbitrator shall determine the Market Base Rental Rate by
choosing whichever of the estimates submitted by Landlord and Tenant the
arbitrator judges to be more accurate. The arbitrator shall notify Landlord and
Tenant of its decision, which shall be final and binding. Landlord and Tenant
agree that in no event shall the Market Base Rental Rate be less than 95% of the
then prevailing Base Rent reserved in this Lease at the expiration of the
initial Lease Term. If the arbitrator believes that expert advice would
materially assist him, the arbitrator may retain one or more qualified persons
to provide expert advice. The fees of the arbitrator and the expenses of the
arbitration proceeding, including the fees of any expert witnesses retained by
the arbitrator, shall be paid by the party whose estimate is not selected. Each
party shall pay the fees of its respective counsel and the fees of any witness
called by that party.

                                       43
<PAGE>   44

2.       RIGHT OF FIRST OFFER TO PURCHASE PROJECT.

(a)      Except as hereinafter provided, during the Lease Term and provided that
(i) Tenant shall not have defaulted in the performance of any of its agreements,
obligations, duties, or covenants under this Lease beyond any applicable notice
and cure period more than three time, (ii) Tenant shall not then be in default
in the performance of any of its agreements, obligations, duties, or covenants
under this Lease beyond any applicable notice and cure period at the time of any
proposed transfer of the Project which is subject to the terms of this Special
Stipulation, (iii) the original named Tenant herein is leasing and occupying all
of the rentable square feet in the Building, and (iv) Tenant shall not have
assigned this Lease to any person or entity, other than an Affiliate, Landlord
shall not transfer or convey its fee title to the Project in a Single Asset
Transaction (as such term is hereinafter defined) without first complying with
the provisions of this Section. As used herein, the term "Single Asset
Transaction" shall mean a sale transaction that does not involve any land or
improvements other than the Project. Should Landlord desire to so transfer or
convey the Project in a Single Asset Transaction, Landlord shall give Tenant
notice thereof, which notice shall specify the cash consideration which Landlord
would accept for the transfer and conveyance of the Project to Tenant, free of
mortgage debt. Tenant shall have thirty (30) calendar days after such notice
(the "Due Diligence Period") in which to elect either to purchase the Project
for such cash consideration or to elect not to so purchase. During the Due
Diligence Period, subject to the rights of other tenants of the Project, Tenant
shall, if and to the extent it desires to do so, independently obtain, perform
and approve at its sole expense:

         (i)      engineering reports, including, without limitation, an
         inspection of the structure and integrity of the buildings in the
         portions of the Project in question, including foundation, walls, roof,
         floors and supports; inspection of all mechanical systems, including
         heat, HVAC and electrical; and inspection of water and sewer systems;

         (ii)     all architectural reports and surveys as Tenant deems
         necessary;

         (iii)    all environmental inspections and reports as Tenant and its
         inspectors deem necessary of the portions of the Project in question;
         and

         (iv)     title examinations, reports and commitments for title
         insurance.

Upon request, Landlord shall furnish to Tenant, at Tenant's expense, copies of
the foregoing due diligence items which are in Landlord's possession. All of the
above inspections and reports shall be performed at reasonable times during
normal business hours upon no less than forty-eight (48) hours prior notice to
Landlord and shall not interfere with Landlord's business operations at the
Project. Tenant may not perform any soil boring tests without the prior written
consent of Landlord. Tenant shall, at Tenant's sole expense, repair any damage
caused by such soil boring tests to the reasonable satisfaction of Landlord.
Tenant further agrees to repair any damage to the Project, or any portion
thereof, and to defend, indemnify and hold Landlord harmless for any damage,
loss, cost, claim or fee (including attorney's fees) arising from any and all of
the above inspections and reports and any other inspections and reports
performed by or at the request of Tenant, its agents, contractors and employees
(including, but not limited to, accountants, appraisers, engineers and
architects). This indemnity shall survive the end of Tenant's inspections during
the Due Diligence Period and the closing. Failure of Tenant to respond to
Landlord within the Due Diligence Period shall be conclusively deemed to
constitute Tenant's election not to so purchase. If Tenant elects not to so
purchase or is deemed to have elected not to so purchase, Landlord will, upon
Tenant's request, furnish Tenant with a copy of the investment property offering
which Landlord may send to prospective purchasers of the Project at the time
Landlord markets the Project for sale, subject to any terms or conditions which
are applicable to other prospective purchasers (e.g., if a prospective

                                       44
<PAGE>   45

purchaser is required to executed Landlord's form Confidentiality and Disclaimer
Agreement as a condition precedent to receiving such investment property
offering, then Tenant shall be required to execute Landlord's form
Confidentiality and Disclaimer Agreement as a condition precedent to receiving
such investment property offering). The provisions of the immediately preceding
sentence are not intended and shall not be construed to grant to Tenant any
option or preferential right.

(b)      If Tenant elects to so purchase, then a closing of such purchase and
sale shall be held within thirty (30) days of the expiration of the Due
Diligence Period at a time and place in Atlanta, Georgia selected by Landlord.
At such closing, Landlord shall transfer by limited warranty deed fee simple
title to the Project, subject to the following matters: (i) matters of record
encumbering such title; (ii) zoning regulations, building codes and similar
ordinances (including any violations thereof); (iii) all matters which would be
disclosed by a current and accurate survey and inspection of said property; (iv)
rights of parties in possession of said property; (v) the lien of current years
ad valorem taxes; (vi) tenant leases; and (vii) inchoate mechanics and
materialmen' liens. All mortgages shall be paid out of the sales proceeds if not
discharged by Landlord prior to such conveyance. Tenant shall assume all of
Landlord's duties and obligations under all leases and service contracts for
such property from and after the date of closing. Rent, taxes, utilities and
service charges shall be prorated as of the date of closing. All recording
costs, taxes and fees shall be borne by Tenant, with the exception of the
Georgia transfer tax, which shall be paid by Landlord. Landlord and Tenant agree
to execute such other and further documentation as shall be necessary or
advisable to effectuate the foregoing as reasonably requested by the other
party.

(c)      If Tenant elects not to so purchase or is deemed to have elected not to
so purchase, Landlord shall be free to sell such property to any person or
entity within one (1) year of Landlord's notice to Tenant so long as the
consideration paid by the purchaser is not less than ninety percent (90%) of the
amount stated in Landlord's notice to Tenant, even if such consideration is not
all cash, as, for example, purchase money financing or a property exchange, but
in such cases, the non-cash consideration shall be converted to the reasonable
cash equivalent thereof for purposes of determining whether such 90% test has
been met. At any time, Landlord may send a new notice to Tenant, and if Tenant
elects not to so purchase, such one year period shall commence anew. While no
consent or waiver of Tenant shall be required, Tenant agrees to certify to any
such purchaser in writing whether the provisions hereof have been complied with
by Landlord.

(d)      This Section shall not apply to any sale, leasing of the entire Project
or other transfer between or among any current or future members or partners in
Landlord, the successors of current or future members or partners, or entities
which are affiliated with any such members, partners or successors. This Section
shall not apply to any leasing of less than all of the Project or to the grant
of easements, covenants or other encumbrances which do not result in the
divestment of substantially all of the interest of Landlord in the Project and
this Section shall not apply to any sale transaction that involves land and/or
improvements in addition to the Project. If the property is sold or transferred
after a right of first offer to purchase is afforded to Tenant under this
Section and Tenant either waives or declines to purchase, then this provision
shall expire and become null and void, and the purchaser or grantee shall take
free of this Section. Further, this Section shall not be applicable to any
financing transaction where a deed to secure debt, security deed, security
agreement, mortgage, sale and leaseback or other financing instrument
(hereinafter referred to as a "security instrument") is granted to encumber the
Project or any portion thereof or parts thereof or interests therein or
interests in

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<PAGE>   46

Landlord as security for debt and/or obligations, and it shall not apply to any
foreclosure sale or deed in lieu of foreclosure under any such security
instrument. It is intended that this Section is unconditionally subordinate and
inferior to any security instrument now or hereafter granted on any of the
aforementioned properties or interests, and this Section shall be extinguished
upon a foreclosure sale or deed in lieu of foreclosure under a security
instrument.

3.       MONUMENT SIGN. Tenant shall have the right to procure, install, and
maintain, all at Tenant's sole cost and expense except as otherwise expressly
provided in subsection 3(f) below, tenant identification signage (the "Tenant
Identification Signage") on the existing monument sign that is located adjacent
to Spalding Drive (the "Monument Sign"), upon and subject to the following terms
and conditions:

(a)      All costs and expenses in connection with the procurement,
installation, repair, maintenance and replacement of the Tenant Identification
Signage and the Monument Sign shall be the responsibility of Tenant, except as
otherwise expressly provided in subsection 3(f) below;

(b)      The Tenant Identification Signage and the Monument Sign shall comply
with all legal requirements and association covenants, and Landlord shall obtain
any required consents or permits from any applicable governmental authority or
association at Tenant's expense;

(c)      The exact manner of installation, design, location, size, color, and
lettering of the Tenant Identification Signage on the Monument Sign, and the
manner of illumination of the Monument Sign, shall all be subject to the prior
written approval of Landlord;

(d)      Tenant shall pay all costs incurred in furnishing electric power for
the illumination of the Monument Sign;

(e)      Tenant shall have the right to maintain the Tenant Identification
Signage on the Monument Sign only for so long as (i) this Lease remains in full
force and effect, and (ii) the originally named Tenant herein or a permitted
assignee of the originally named Tenant herein is doing business in all of the
Premises. Tenant shall, at its sole cost and expense, promptly remove the Tenant
Identification Signage from the Monument Sign and repair any damage to the
Monument Sign and/or any other portion of the Project caused by or resulting
from such removal if such conditions do not continue to be satisfied. In the
event Tenant fails to so remove such Tenant Identification Signage from the
Monument Sign or repair such damage, Landlord may remove same and make such
repairs at Tenant's cost and Tenant shall pay Landlord on demand as Additional
Rent the cost of such removal and repairs. The Monument Sign shall remain the
property of Landlord upon the expiration or earlier termination of this Lease;
and

(f)      Landlord shall contribute up to Five Hundred Dollars ($500) in the
aggregate toward the costs incurred by Tenant to procure and install the
approved Tenant Identification Signage and the approved Tenant Pylon Sign (as
defined below).

4.       TENANT PYLON STRIP SIGN. Tenant shall have the right to procure,
install, and maintain, all at Tenant's sole cost and expense except as otherwise
expressly provided in subsection 3(f) above, tenant identification signage (the
"Tenant Pylon Strip Sign") on the existing Project pylon sign that is located
near the entrance to the Building off of Data Drive (the "Building Pylon Sign"),
upon and subject to the following terms and conditions:

                                       46
<PAGE>   47

(a)      All costs and expenses in connection with the procurement,
installation, maintenance, repair and replacement of the Tenant Pylon Strip Sign
and the Building Pylon Sign shall be the responsibility of Tenant, except as
otherwise expressly provided in subsection 3(f) above;

(b)      The Tenant Pylon Strip Sign and the Building Pylon Sign shall comply
with all legal requirements and association covenants, and Landlord shall obtain
any required consents or permits from any applicable governmental authority or
association at Tenant's expense;

(c)      The exact manner of installation, design, location, size, color, and
lettering of the Tenant Pylon Strip Sign on the Building Pylon Sign, and the
manner of illumination of the Building Pylon Sign, shall all be subject to the
prior written approval of Landlord;

(d)      Tenant shall pay all costs incurred in furnishing electric power for
the illumination of the Building Pylon Sign;

(e)      Tenant shall have the right to maintain the Tenant Pylon Strip Sign on
the Building Pylon Sign only for so long as (i) this Lease remains in full force
and effect, and (ii) the originally named Tenant herein or a permitted assignee
of the originally named Tenant herein is doing business in all of the Premises.
Tenant shall, at its sole cost and expense, promptly remove the Tenant Pylon
Strip Sign from the Building Pylon Sign and repair any damage to the Building
Pylon Sign and/or any other portion of the Project caused by or resulting from
such removal if such conditions do not continue to be satisfied. In the event
Tenant fails to so remove such Tenant Pylon Strip Sign from the Building Pylon
Sign or repair such damage, Landlord may remove same and make such repairs at
Tenant's cost and Tenant shall pay Landlord on demand as Additional Rent the
cost of such removal and repairs. The Building Pylon Sign shall remain the
property of Landlord upon the expiration or earlier termination of this Lease.

5.       ONE-TIME ROOF REPLACEMENT; REPAIR AND CLEANING OF BUILDING FASCIA.

         Landlord shall, at its expense, cause a new roof of the Building to be
installed and Landlord shall use commercially reasonable efforts to complete
such new roof work on or before the Commencement Date. Such new roof shall be of
comparable or better quality than the original roof when it was new. In
addition, prior to the Commencement Date, Landlord shall, at its expense, cause
all material damage to the Building fascia to be repaired and the Building
fascia to be cleaned, all in a good and workmanlike manner. Commencing in
calendar year 2002 and throughout the remainder of the Term, Landlord shall also
cause the Building fascia to be thoroughly cleaned annually in a manner
acceptable to both parties.

6.       PARKING.

         Landlord shall provide, without charge (except in connection with Tax
Charges, Insurance Charges and CAM Charges), one hundred ninety-five (195)
parking spaces at the Project for the nonexclusive use, on a first come, first
served basis, by Tenant and its employees and other invitees. Tenant shall have
no exclusive parking rights with respect to any parking spaces within the
Project, and Tenant shall not tow cars or otherwise enforce its parking rights
against third parties. Notwithstanding the foregoing, Landlord agrees that in
the event Landlord enters into any new leases in the Project from and after the
Commencement Date of this Lease and any such new lease grants the tenant named
therein with the right to use more than four (4) parking spaces per 1,000 square
feet of rentable area in such tenant's demised premises, Landlord will restrict
such tenant from utilizing any of the parking spaces in the parking area which
is closest to the Building. Tenant shall not allow its

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<PAGE>   48

employees or other invitees to park within any public streets adjacent to the
Project. Landlord shall have the right, but not the obligation, to impose
reasonable rules and regulations as Landlord may deem necessary to regulate
parking within the Project, including registration of license plate numbers for
vehicles driven by Tenant's employees, issuance and monitoring of parking tags
or permits and/or designation of exclusive parking spaces. Landlord shall not be
liable for any damage or loss to any automobile (or property therein) parked in,
on or about such parking areas, or for any injury sustained by any person in or
about such areas. Landlord shall have the right to substitute, temporarily or
permanently, alternative surface or structured parking areas or spaces if
Landlord deems it necessary or desirable to do so.

7.       MAINTENANCE OF BUILDING.

         Except as otherwise expressly and specifically stated to be the
obligation and responsibility of Landlord in this Lease, Tenant shall be fully
responsible and liable for, and hereby agrees to indemnify and hold harmless
Landlord from and against, all ownership costs and liabilities for the Building,
including, without limitation, all of the following: (a) taxes, assessments,
benefit charges and other governmental charges assessed against the Building or
Landlord as fee simple owner thereof, (b) all costs to repair, maintain and
operate all improvements and equipment located on the Building in good working
condition (subject only to ordinary non-repairable wear), (c) all insurance
costs associated with insurable liabilities and risks arising out of the
ownership of the Building, including, without limitation, casualty, flood,
earthquake, and general liability, and (d) all general costs of ownership and
upkeep of the Building, including, without limitation, elimination of nuisances
and hazardous conditions, removal of squatters and other trespassers, and
compliance with any applicable legal requirements. Tenant and its agents shall
have access to the Building for the purpose of satisfying the foregoing
obligations, but Tenant has no authority to cause or permit any lien or
encumbrance of any kind to affect Landlord or its interest in the Building.
Landlord shall have the right, but not the obligation, to perform any and all
obligations required to be performed or paid by Tenant under this Section. Any
cost incurred or paid by Landlord that is a cost or obligation of Tenant
pursuant to this Section shall be paid by Tenant to Landlord as Additional Rent
within ten (10) days of Tenant's receipt of Landlord's request for such payment
with supporting documentation for the cost incurred or paid by Landlord.

8.       [Intentionally Omitted].

9.       GENERATOR.

         (a)      Landlord shall install and hereby grants to Tenant a license
to maintain, repair, replace and operate one (1) emergency back-up generator
(together with any related wires, conduits and other equipment necessary or
desirable for the proper installation and operation of such generator, including
fencing/screening of same, collectively the "Generator") in a location
designated by Landlord (the "Generator Area") upon and subject to all of the
terms and conditions set forth in this Section. All aspects of the Generator
shall be subject to the prior written approval of Landlord.

         (b)      The Generator shall be used only by Tenant solely to provide a
source of back-up power for equipment located on the Premises; Tenant shall not
have the right to use or allow any other person or entity to use the Generator
for a fee. The rights under this Section are personal to the Tenant named herein
and are not assignable except to a permitted assignee of this Lease approved by
Landlord. The Generator installed shall be and remain the property of Landlord
at the end of the Term of this Lease. Notwithstanding the foregoing, in the
event Tenant, at Tenant's cost and expense, replaces the Generator in its
entirety during the last three (3) years of the Term of this Lease, Tenant shall
be entitled to remove the Generator at the end of the Term of this Lease,
provided that Tenant

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<PAGE>   49

shall surrender the Generator Area in substantially the same condition existing
prior to the installation of the Generator. Tenant shall be liable for, and
shall promptly reimburse Landlord for, the cost of repairing all damage done to
the Generator Area or to any other portion of the Project by the removal of the
Generator, including restoring the landscape to its previous condition. Other
than the permanent natural gas line supplying fuel to the Generator, Tenant
shall not store any fuel for the Generator on any portion of the Project without
the prior written consent of Landlord, which consent may be withheld in the sole
and absolute discretion of Landlord.

         (c)      Landlord shall, at Tenant's sole cost and expense (subject to
Landlord's Generator Contribution), obtain all governmental permits or licenses
required for the installation and operation of the Generator. Tenant shall, at
its expense, repair and maintain the Generator in good operating condition.
Tenant's repair, maintenance and operation of the Generator shall be subject to
and performed in accordance with the terms and conditions of this Lease and all
applicable Governmental Requirements in effect from time to time. "Governmental
Requirements" shall mean any law, statute, ordinance, order, rule, regulation or
requirement of a Governmental Authority. "Governmental Authority" shall mean the
United States, the state, county, city and political subdivision in which the
Building is located or which exercises jurisdiction over the Building, and any
agency, department, commission, board, bureau or instrumentality of any of them
which exercises jurisdiction over the Building. Landlord shall cause the
Generator to be acquired and installed at Tenant's expense (subject to
Landlord's Generator Contribution), all in a good and workmanlike manner and in
compliance with all applicable Governmental Requirements, including, but not
limited to, all building, electric, communications, and safety codes,
ordinances, standards, regulations and requirements of any governmental
authority. Tenant shall cause the maintenance of the Generator to be made in a
good and workmanlike manner so as to not interfere with any other tenant or
occupant of the Project. Unless the parties otherwise agree, Cummins South Inc.
will be selected as the contractor to install the Generator. Tenant shall use
best efforts to cause Cummins South Inc. to deliver, on or before October 13,
2000, plans and specifications for the Generator and the aesthetic screening of
the same to Landlord and Tenant. Such plans and specifications are subject to
Landlord's consent, such consent not to be unreasonably withheld. Landlord and
Tenant agree to act in good faith to attempt to mutually approve such plans and
specifications within seven (7) days after Cummins South Inc. delivers such
plans and specifications to Landlord and Tenant. The operation of the Generator
shall not disturb or interfere with the systems of the Project or with any other
tenant or occupant of the Project. Tenant covenants that in no event shall the
operation of the Generator damage the Project or any portion thereof or existing
structure on the Building, or interfere with the maintenance of the Project, any
system currently serving the Project, any equipment currently being operated
from or within the Project or portion thereof, or in any manner invalidate or
otherwise adversely affect any existing warranties in place on the Building or
on any improvements to the Building. Tenant shall pay for all preparations and
revisions of plans and specifications relating to the Generator, and for the
acquisition and installation of the Generator, subject to Landlord's Generator
Contribution. Provided Tenant is not in default hereunder, Landlord shall
contribute an amount up to $50,000.00 ("Landlord's Generator Contribution")
toward the costs incurred for the acquisition and installation of the Generator,
including all related equipment such as cabling, transfer switch, electrical
phasing panels, fuel source and aesthetic screening as shall be required for the
installation of the Generator. Landlord has no obligation to pay for any costs
relating the Generator in excess of Landlord's Generator Contribution. Any costs
in excess of Landlord's Generator Contribution (herein, the "Excess

                                       49
<PAGE>   50

Generator Costs") shall be paid by Tenant to Landlord upon substantial
completion of the installation of the Generator. Tenant acknowledges that the
Excess Generator Costs are estimated to be no less than $26,000 and may in fact
be in excess of such amount. To avoid any doubt, the Completion Date (as defined
in Exhibit "B") (i.e., the date of substantial completion of the Initial
Improvements) shall not be affected in any way by the date on which the
installation of the Generator is complete, and in no event shall the Generator
installation work result in any extension or delay in the Commencement Date.

         (d)      Landlord shall not be liable to Tenant for any stoppages or
shortages of power furnished to the Generator or to the Generator Area because
of any act, omission or requirement of the public utility serving the Building,
or the act or omission of any other tenant, licensee or contractor of the
Building, or for any other cause beyond the control of Landlord, and Tenant
shall not be entitled to any rental abatement for any such stoppage or shortage
of power. Tenant shall operate the Generator in strict compliance with
Landlord's rules and regulations, now or hereafter promulgated, and all
applicable Governmental Requirements. Tenant shall, at Tenant's expense, be
solely responsible throughout the Term for maintaining, servicing and repairing
the Generator and for repairing any damage to the Building or any systems or
equipment serving the Building caused by the Generator or by any act, negligence
or misconduct of Tenant, Tenant's employees, agents or contractors, while
installing, using, servicing, repairing, maintaining or removing the Generator.
Tenant shall protect, defend, indemnify and save Landlord and its officers,
directors, agents, employees, other tenants, licensees and invitees harmless
from and against any and all obligations, costs (including costs of litigation
and attorneys' fees), expenses, claims, damages and liabilities of any nature
whatsoever arising out of or in connection with the existence, installation,
construction, operation, repair, maintenance and/or removal of the Generator,
unless arising as a result of the gross negligence or intentional misconduct of
Landlord. Tenant's license under this Section shall automatically terminate upon
the earlier to occur of the end of the Term of this Lease.

         10.      SATELLITE DISH/ANTENNA.

         (a)      During the Term, Landlord shall grant to Tenant a
non-exclusive license to install, maintain, repair, replace and operate one (1)
satellite dish and/or antenna (together with any related wires, conduits and
other equipment necessary or desirable for the proper operation of such
satellite dish and/or antenna, collectively the "Satellite") in a location on
the roof of the Building designated by Landlord and reasonably acceptable to
Tenant (the "Equipment Space Area") upon and subject to all of the terms and
conditions set forth herein. The Satellite shall be used only by Tenant solely
to transmit and receive aerial transmissions in connection with the business of
Tenant; Tenant shall not have the right to use or allow any other person or
entity to use the Satellite for a fee. The rights under this Special Stipulation
are personal to the Tenant named herein and are not assignable, except with
respect to a permitted assignee of Tenant's interest under this Lease. Tenant
its employees, agents and contractors shall have the right, upon prior
reasonable notice to Landlord's managing agent, to enter or leave the roof for
purposes of accessing the Satellite, subject to the terms of this Special
Stipulation 10. The Satellite installed shall be and remain the property of
Tenant, and Tenant shall, prior to the expiration or termination of this
license, remove the Satellite (including all installation and anchoring
hardware) installed in the Equipment Space Area and elsewhere in the Building,
and surrender the Equipment Space Area in substantially the same condition
existing prior to the installation of the Satellite. Tenant shall be liable for,
and shall promptly reimburse Landlord for, the cost of repairing all damage done
to the Equipment Space Area or to the Building (including the roof thereof) by
such installation or removal, including filling and sealing any holes or
cavities left by the removal of installation or anchoring hardware. Tenant
shall, at its sole cost and expense, obtain all

                                       50
<PAGE>   51

governmental permits or licenses required for the installation, repair,
maintenance, operation and removal of the Satellite and shall provide Landlord
with evidence thereof. Landlord agrees to cooperate with Tenant in obtaining all
such permits and authorization, at no cost or expense to Landlord. Tenant's
installation, repair, maintenance, operation and removal of the Satellite shall
be subject to and performed in accordance with the terms and conditions of this
Lease and all applicable Legal Requirements (defined below) in effect from time
to time. Tenant shall, at its sole cost and expense, and at its sole risk,
install the Satellite in a good and workmanlike manner, and in compliance with
all applicable Legal Requirements, including, but not limited to, all building,
electric, communications, and safety codes, ordinances, standards, regulations
and requirements of the Federal Communications Commission and any other
Governmental Authority (defined below).

         (b)      Tenant shall conduct the installation and maintenance of the
Satellite in a good and workmanlike manner so as to not interfere with any other
tenant or occupant of the Project. The operation of the Satellite shall not
disturb or interfere with the systems of the Building. Tenant shall deliver to
Landlord Tenant's plans and specifications for the installation of the Satellite
and for the aesthetic screening of same for review and approval by Landlord not
less than thirty (30) days prior to commencing installation of the Satellite.
The Satellite shall be installed substantially in accordance with the plans and
specifications approved by Landlord, and the installation shall be performed by
contractors approved by Landlord, which approval shall not be unreasonably
withheld or delayed. Landlord shall not be liable to Tenant for any stoppages or
shortages of electrical power furnished to the Satellite or to the Equipment
Space Area because of any act, omission or requirement of the public utility
serving the Building, or the act or omission of any other tenant, licensee or
contractor of the Project or for any other cause beyond the reasonable control
of Landlord, and Tenant shall not be entitled to any rental abatement for any
such stoppage or shortage of electric power. Tenant shall operate the Satellite
in strict compliance with Landlord's rules and regulations, now or hereafter
promulgated, and all applicable Legal Requirements. Tenant shall, at Tenant's
expense, be solely responsible throughout the Term for maintaining, servicing
and repairing the Satellite and for repairing any damage to the Building or any
systems or equipment serving the Building caused by the Satellite or by any act,
negligence or misconduct of Tenant, Tenant's employees, agents or contractors,
while installing, using, servicing, repairing, maintaining or removing the
Satellite. Tenant shall protect, defend, indemnify and save Landlord and its
trustees, agents, employees, other tenants, licensees and invitees harmless from
and against any and all obligations, costs (including costs of litigation and
attorneys' fees), expenses, claims, damages and liabilities of any nature
whatsoever arising out of or in connection with the existence, installation,
construction, operation, repair, maintenance and/or removal of the Satellite. As
used herein, the term "Governmental Authority" shall mean the United States, the
state, county, city and political subdivision in which the Building is located
or which exercises jurisdiction over the Building, and any agency, department,
commission, board, bureau or instrumentality of any them which exercises
jurisdiction over the Building, and the term "Legal Requirements" shall mean any
law, statute, ordinance, order, rule, regulation or requirement of a
Governmental Authority.

         (c)      Notwithstanding anything contained in this Lease to the
contrary, nothing contained herein shall be deemed to prohibit or restrict any
other individual or entity, including without limitation Landlord or any other
tenant of the Project, from installing communications equipment on the roof of
the Building (with related wiring, conduits and other equipment in and through
the core of the Building as necessary or desirable for the proper operation of
such communications equipment), or from using the roof for any other purpose, it
being agreed that Landlord and its designees shall have the right to do the
same; provided, however, Landlord shall not install or permit the installation
of communications equipment on the roof of the Building if the proposed
equipment will interfere with the operations of the Satellite.

                                       51
<PAGE>   52

11.      ASSIGNMENT OF LEASE TO AFFILIATE FAILING NET WORTH TEST.

         (a)      In the event:

                  (i) Tenant desires to assign this Lease to an Affiliate in the
context of a merger or consolidation of Tenant or sale of all or substantially
all of the assets or stock of Tenant, and

                  (ii) the proposed Affiliate does not have a demonstrated net
worth determined in accordance with generally accepted accounting principles and
credit rating which is equal to or greater than the demonstrated net worth
determined in accordance with generally accepted accounting principles and
credit rating of Tenant on the date of execution of this Lease, and

                  (iii) the proposed Affiliate is a corporation (x) having a
net worth (calculated using generally accepted accounting principles
consistently applied and as reflected by audited financial statements prepared
by a "Big Five" accounting firm) of more than $60,000,000 (USD), and (y) having
(A) a Standard & Poor's long-term issue credit rating of "BBB" or higher on the
proposed effective date of the assignment of this Lease to the Affiliate or a
Moody's long-term issue credit rating of "BAA-3" or higher on the proposed
effective date of the assignment of this Lease to the Affiliate, or (B) if the
proposed assignee does not have a Standard & Poor's or a Moody's credit rating
on any publicly traded debt, investment grade credit worthiness equal to or
better than the creditworthiness rating as described in the immediately
preceding clause (A), as determined by Landlord in the exercise of Landlord's
reasonable business judgment after having reviewed the current financial
information on the proposed assignee made available to Landlord by the proposed
assignee and from other sources (e.g., Dun & Bradstreet) (any such Affiliate
satisfying the requirements of this clause (iii) is herein referred to as a
"Credit Worthy Affiliate"), and

                  (iv) Tenant is not in default under this Lease beyond any
applicable notice and cure period,

then, in those events and subject to the other terms and conditions contained in
Section 20 of the Lease, Landlord will consent to the assignment of the Lease to
such Affiliate.

(b)      In the event:

                  (i) Tenant desires to assign this Lease to an Affiliate in the
context of a merger or consolidation of Tenant or sale of all or substantially
all of the assets or stock of Tenant, and

                  (ii) the proposed Affiliate does not have a demonstrated net
worth determined in accordance with generally accepted accounting principles and
credit rating which is equal to or greater than the demonstrated net worth
determined in accordance with generally accepted accounting principles and
credit rating of Tenant on the date of execution of this Lease, and

                  (iii) the proposed Affiliate is not a Credit Worthy Affiliate
(as defined above), and

                  (iv) Tenant is not in default under this Lease beyond any
applicable notice and cure period, and

                                       52
<PAGE>   53

                  (v) Tenant shall have delivered or caused to be delivered to
Landlord the Letter of Credit (as defined below) prior to the assignment of the
Lease in accordance with the terms and conditions hereinbelow,

then, in those events and subject to the other terms and conditions contained in
Section 20 of the Lease, Landlord will consent to the assignment of the Lease to
such Affiliate. As a condition precedent to the requirement that Landlord grant
its consent to the assignment of this Lease to the Affiliate as provided in the
preceding sentence, Tenant shall deposit or caused to be deposited with Landlord
an irrevocable letter of credit (the "Letter of Credit"), in an amount (the
"Initial Amount") equal to the sum of the aggregate amount of Base Rent and
Additional Rent which is scheduled to become due and payable under this Lease
from and after the date of the subject assignment of this Lease through the end
of the Lease Term (including any exercised Renewal Term). For purposes of making
the calculation of such amount of Additional Rent, the CAM Charges, Insurance
Charges and Tax Charges components of such Additional Rent shall equal the
aggregate amount of CAM Charges, Insurance Charges and Tax Charges for the last
full calendar year prior to the date of such assignment, with such aggregate
amount increased by 4% per annum on a cumulative basis for the remainder of the
Lease Term (including any exercised Renewal Term). The Letter of Credit shall
(i) be issued by a commercial bank reasonably satisfactory to Landlord
("Issuer"); (ii) be an irrevocable letter of credit; (iii) be payable to
Landlord: (iv) require that any draw on the Letter of Credit shall be made only
upon receipt by the Issuer of a written certification from Landlord certifying
that the Tenant is in default under the Lease and has not cured such default;
(v) provide that it is governed by the Uniform Customs and Practice for
Documentary Credits (1993 revisions), International Chamber of Commerce
Publication No. 500; and (vi) otherwise be in a form acceptable to Landlord.
Tenant shall keep the Letter of Credit in effect during the entire Lease Term,
as the same may be extended, plus a period of four (4) weeks thereafter. At
least thirty (30) days prior to the expiration of the Letter of Credit, the term
thereof shall be renewed or extended pursuant to an amendment thereto acceptable
to the Landlord and any failure to so renew or extend the Letter of Credit shall
entitle Landlord to immediately draw down all sums available thereunder. At
least thirty (30) days prior to the commencement of any exercised Renewal Term,
the term of the Letter of Credit shall be renewed or extended in an amount equal
to the sum of the aggregate amount of Base Rent and Additional Rent which is
scheduled to become due and payable under this Lease throughout the entire
Renewal Term (and for purposes of making the calculation of such amount of
Additional Rent, the CAM Charges, Insurance Charges and Tax Charges components
of such Additional Rent shall equal the aggregate amount of CAM Charges,
Insurance Charges and Tax Charges for the last full calendar year of the initial
Lease Term, with such aggregate amount increased by 4% per annum on a cumulative
basis for the remainder of the Renewal Term) pursuant to an amendment thereto
acceptable to the Landlord and any failure to so renew or extend the Letter of
Credit shall entitle Landlord to immediately draw down all sums available under
the Letter of Credit and the Renewal Option shall, at Landlord's option, be void
notwithstanding anything contained to the contrary in Special Stipulation 1
above. Tenant may annually reduce the amount of the Letter of Credit by ten
percent (10%) of the Initial Amount on each anniversary date of the subject
assignment of this Lease to the Affiliate by an amendment or by substitution of
a new letter of credit which complies with the requirements of this paragraph,
which reflects such reduced amount (the "Amended Amount"). If a default by
Tenant has occurred beyond any applicable notice and cure period, then Landlord
shall be entitled to draw upon the Letter of Credit in the amount determined by
Landlord necessary to cure such default and compensate Landlord for any damages
suffered by Landlord as a result thereof.

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<PAGE>   54

                                   EXHIBIT "D"
                         BUILDING RULES AND REGULATIONS

1.       No additional locks shall be placed on the doors of the Premises by
Tenant, nor shall any existing locks be changed unless Landlord is immediately
furnished with two keys thereto. Landlord will without charge furnish Tenant
with two keys for each lock existing upon the entrance doors when Tenant assumes
possession with the understanding that at the termination of the Lease these
keys shall be returned.

2.       Tenant will refer all contractors, contractor's representatives and
installation technicians, rendering any service on or to the Premises for
Tenant, to Landlord's reasonable approval and supervision before performance of
any contractual service. This provision shall apply to all work performed in the
Building including installation of telephones, telegraph equipment, electrical
devices and attachments and installations of any nature affecting floors, walls
woodwork, trim, windows, ceilings, equipment or any other physical portion of
the Building.

3.       No Tenant shall at any time occupy any part of the Building as sleeping
or lodging quarters.

4.       Tenant shall not place, install or operate on the Premises or in any
part of Building, any engines, stove or machinery, or conduct mechanical
operations or cook thereon or therein, or place or use in or about the Premises
any explosives, gasoline, kerosene, oil acids, caustics, or any other flammable,
explosives, or hazardous material without written consent of Landlord.

5.       Landlord will not be responsible for loss or stolen personal property,
equipment, money or jewelry from Tenant's area or public rooms regardless of
whether such loss occurs when area is locked against entry or not.

6.       Tenant shall not at any time display a "For Rent" sign upon the
Premises for rent.

7.       Safes and other unusually heavy objects shall be placed by the Tenant
only in such places as may be approved by Landlord.

8.       [Intentionally Omitted].

9.       Landlord will not permit entrance to Tenant's offices by use of pass
key controlled by Landlord, to any person at any time without written permission
by Tenant, except employees, contractors, or service personnel directly
supervised by Landlord.

10.      None of the entries, passages, doors, or hallways shall be blocked or
obstructed, or any rubbish, litter, trash, or material of any nature placed,
emptied or thrown into these areas, including any alleyways to the rear of the
Premises, or such areas to be used at any time except for access or egress by
Tenant, Tenant's agents, employees or invitees.

11.      The water closets and other water fixtures shall not be used for any
purposes other than those for which they were constructed, and any damage
resulting to them from misuse, or the defacing or injury of any part of the
Building shall be borne by the person who shall occasion it. No person shall
waste water by interfering with the faucets or otherwise.

                                       1
<PAGE>   55

12.      No vehicles or animals shall be brought into the Building.

13.      No sign, tag, label, picture, advertisement, or notice (other than
price tags of customary size used in marking samples) shall be displayed,
distributed, inscribed, painted or affixed by Tenant on any part of the outside
or inside of the Building or of the Premises without the prior written consent
of Landlord.

14.      In the event Landlord should advance upon the request, or for the
account of the Tenant, any amount for labor, material, packing, shipping,
postage, freight or express upon articles delivered to the Premises or for the
safety, care, and cleanliness of the Premises, the amount so paid shall be
regarded as Additional Rent and shall be due and payable forthwith to the
Landlord from the Tenant.

15.      Tenant shall not do or permit to be done within the Premises anything
which would unreasonably annoy or interfere with the rights of other tenants of
the Project.

                                       2
<PAGE>   56

                                   EXHIBIT "E"
         FORM OF SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

                                       3<PAGE>   1
                                                                   Exhibit 4.3.8

================================================================================

                           SECOND AMENDED AND RESTATED

                                CREDIT AGREEMENT

                                      AMONG

                        PAXSON COMMUNICATIONS CORPORATION

                               The Several Lenders
                        from Time to Time Parties Hereto

                                       and

                         UNION BANK OF CALIFORNIA, N.A.,
                                  AS THE AGENT

                           DATED AS OF APRIL 28, 1998

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               PAGE
                                                                                                               ----
<S>              <C>                                                                                            <C>
SECTION 1. DEFINITIONS............................................................................................1
         1.1      DEFINED TERMS...................................................................................1
         1.2      OTHER DEFINITIONAL PROVISIONS................................................................. 22

SECTION 2. AMOUNT AND TERMS OF LOANS AND COMMITMENTS............................................................ 23
         2.1      LOANS AND COMMITMENTS......................................................................... 23
         2.2      PROCEDURE FOR BORROWING....................................................................... 23
         2.3      INSTALLMENTS.................................................................................. 23
         2.4      REPAYMENT OF LOANS; EVIDENCE OF DEBT.......................................................... 24
         2.5      OPTIONAL PREPAYMENTS.......................................................................... 24
         2.6      MANDATORY PREPAYMENTS......................................................................... 25
         2.7      CONVERSION AND CONTINUATION OPTIONS........................................................... 25
         2.8      MINIMUM AMOUNTS AND MAXIMUM NUMBER OF TRANCHES................................................ 26
         2.9      INTEREST RATES AND PAYMENT DATES.............................................................. 26
         2.10     COMPUTATION OF INTEREST AND FEES.............................................................. 27
         2.11     INABILITY TO DETERMINE INTEREST RATE.......................................................... 27
         2.12     PRO RATA TREATMENT AND PAYMENTS............................................................... 28
         2.13     ILLEGALITY.................................................................................... 28
         2.14     REQUIREMENTS OF LAW........................................................................... 28
         2.15     TAXES......................................................................................... 30
         2.16     INDEMNITY..................................................................................... 31
         2.17     CHANGE OF LENDING OFFICE...................................................................... 32
         2.18     FURTHER ASSURANCES REGARDING SECURITY; ADDITIONAL SECURITY.................................... 32

SECTION 3. REPRESENTATIONS AND WARRANTIES....................................................................... 34
         3.1      ORGANIZATION, POWERS, GOOD STANDING AND BUSINESS.............................................. 34
         3.2      AUTHORIZATION OF BORROWING, ETC............................................................... 36
         3.3      FINANCIAL CONDITION........................................................................... 37
         3.4      NO MATERIAL ADVERSE CHANGE; NO RESTRICTED PAYMENTS............................................ 37
         3.5      TITLE TO PROPERTIES; LIENS.................................................................... 38
         3.6      LITIGATION; ADVERSE FACTS..................................................................... 38
         3.7      PAYMENT OF TAXES.............................................................................. 38
         3.8      PERFORMANCE OF AGREEMENTS..................................................................... 38
         3.9      GOVERNMENTAL REGULATION....................................................................... 39
         3.10     SECURITIES ACTIVITIES......................................................................... 39
         3.11     EMPLOYEE BENEFIT PLANS........................................................................ 39
         3.12     CERTAIN FEES.................................................................................. 39
         3.13     ENVIRONMENTAL................................................................................. 40
         3.14     SOLVENCY...................................................................................... 41
         3.15     RELATED DOCUMENTS............................................................................. 41
         3.16     INSURANCE..................................................................................... 41
         3.17     INTELLECTUAL PROPERTY......................................................................... 42

</TABLE>

                                       i
<PAGE>   3
<TABLE>
<CAPTION>
<S>              <C>                                                                                            <C>
         3.18     DISCLOSURE.................................................................................... 42
         3.19     SECURITY DOCUMENTS............................................................................ 42
         3.20     PURPOSES OF LOANS............................................................................. 43

SECTION 4. CONDITIONS PRECEDENT................................................................................. 43

SECTION 5. AFFIRMATIVE COVENANTS................................................................................ 46
         5.1      FINANCIAL STATEMENTS AND SYSTEMS.............................................................. 47
         5.2      MAINTENANCE OF EXISTENCE, ETC................................................................. 50
         5.3      PAYMENT OF TAXES AND CLAIMS; TAX CONSOLIDATION................................................ 50
         5.4      MAINTENANCE OF PROPERTIES; INSURANCE.......................................................... 51
         5.5      INSPECTION; LENDER MEETING.................................................................... 51
         5.6      COMPLIANCE WITH LAWS, ETC..................................................................... 51
         5.7      COMPLIANCE WITH RELATED DOCUMENTS............................................................. 52
         5.8      ENVIRONMENTAL DISCLOSURE AND INSPECTION....................................................... 52
         5.9      HAZARDOUS MATERIALS; THE BORROWER'S REMEDIAL ACTION........................................... 53
         5.10     FCC LICENSES.................................................................................. 53
         5.11     ADDITIONAL LOAN PARTIES....................................................................... 54
         5.12     CORPORATE SEPARATENESS; TAX SHARING AGREEMENT................................................. 54

SECTION 6. NEGATIVE COVENANTS................................................................................... 54
         6.1      FINANCIAL CONDITION COVENANTS................................................................. 54
         6.2      LIMITATION ON INDEBTEDNESS.................................................................... 55
         6.3      LIENS AND RELATED MATTERS..................................................................... 57
         6.4      INVESTMENTS; JOINT VENTURES................................................................... 58
         6.5      CONTINGENT OBLIGATIONS........................................................................ 59
         6.6      RESTRICTED PAYMENTS........................................................................... 60
         6.7      RESTRICTION ON FUNDAMENTAL CHANGES; ASSET SALES............................................... 61
         6.8      FISCAL YEAR................................................................................... 62
         6.9      SALES AND LEASE-BACKS......................................................................... 62
         6.10     SALE OR DISCOUNT OF RECEIVABLES............................................................... 62
         6.11     TRANSACTIONS WITH SHAREHOLDERS AND AFFILIATES................................................. 62
         6.12     DISPOSAL OF SUBSIDIARY STOCK.................................................................. 62
         6.13     CONDUCT OF BUSINESS........................................................................... 63
         6.14     AMENDMENTS OR WAIVERS OF RELATED DOCUMENTS AND CHARTER DOCUMENTS; LIMITATION ON OPTIONAL
                  PAYMENTS...................................................................................... 63

SECTION 7. EVENTS OF DEFAULT.................................................................................... 64

SECTION 8. THE AGENT............................................................................................ 68
         8.1      APPOINTMENT................................................................................... 68
         8.2      DELEGATION OF DUTIES.......................................................................... 68
         8.3      EXCULPATORY PROVISIONS........................................................................ 68
         8.4      RELIANCE BY THE AGENT......................................................................... 68
         8.5      NOTICE OF DEFAULT............................................................................. 69
         8.6      NON-RELIANCE ON THE AGENT AND OTHER LENDERS................................................... 69
</TABLE>

                                       ii
<PAGE>   4
<TABLE>
<CAPTION>
<S>              <C>                                                                                            <C>
         8.7      INDEMNIFICATION............................................................................... 70
         8.8      THE AGENT IN ITS INDIVIDUAL CAPACITY.......................................................... 70
         8.9      SUCCESSOR THE AGENT........................................................................... 70

SECTION 9. MISCELLANEOUS........................................................................................ 71
         9.1      AMENDMENTS AND WAIVERS........................................................................ 71
         9.2      NOTICES....................................................................................... 71
         9.3      NO WAIVER; CUMULATIVE REMEDIES................................................................ 72
         9.4      SURVIVAL OF REPRESENTATIONS AND WARRANTIES.................................................... 72
         9.5      PAYMENT OF EXPENSES AND TAXES................................................................. 72
         9.6      SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS........................................ 73
         9.7      ADJUSTMENTS; SET-OFF.......................................................................... 75
         9.8      COUNTERPARTS; EFFECTIVENESS................................................................... 76
         9.9      SEVERABILITY.................................................................................. 76
         9.10     INTEGRATION................................................................................... 76
         9.11     GOVERNING LAW................................................................................. 76
         9.12     SUBMISSION TO JURISDICTION; WAIVERS........................................................... 76
         9.13     ACKNOWLEDGEMENTS.............................................................................. 77
         9.14     WAIVERS OF JURY TRIAL......................................................................... 77
         9.15     CONFIDENTIALITY............................................................................... 77
         9.16     EFFECT OF AMENDMENT AND RESTATEMENT OF THE EXISTING CREDIT AGREEMENT.......................... 78
         9.17     REDEMPTION OF SENIOR SUBORDINATED NOTES....................................................... 78

</TABLE>

                                      iii
<PAGE>   5

SCHEDULES

1.1A        LENDERS, CONTINUED LOANS, COMMITMENTS AND ADDRESSES
1.1B        PREAPPROVED ACQUISITIONS
1.1C        LICENSE COMPANIES AND PARTNERS
2.6(B)      CERTAIN MANDATORY PREPAYMENT MATTERS
3.1(D)      OWNERSHIP OF SUBSIDIARIES
3.1(E)      FCC LICENSES, TELEVISION STATIONS
3.1(F)      REAL PROPERTY
3.16        INSURANCE
3.17(B)     INTELLECTUAL PROPERTY
3.19(B)     UCC FILING OFFICES
5.10        CERTAIN FCC LICENSES
6.2(D)      EXISTING INDEBTEDNESS AND LIENS
6.4(D)      EXISTING INVESTMENTS
7(R)        CERTAIN MINORITY INTERESTS

EXHIBITS

A         FORM OF NOTE
B         FORM OF SECOND AMENDED AND RESTATED BORROWER PLEDGE AGREEMENT
C         FORM OF SECOND AMENDED AND RESTATED BORROWER SECURITY AGREEMENT
D         FORM OF SECOND AMENDED AND RESTATED SUBSIDIARIES GUARANTEE
E         FORM OF SECOND AMENDED AND RESTATED SUBSIDIARIES PLEDGE AGREEMENT
F         FORM OF SECOND AMENDED AND RESTATED SUBSIDIARIES SECURITY AGREEMENT
G         FORM OF BORROWING CERTIFICATE
H         FORM OF ASSIGNMENT AND ACCEPTANCE
I         FORM OF CASH COLLATERAL AGREEMENT

                                       iv
<PAGE>   6

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of
April 28, 1998, among PAXSON COMMUNICATIONS CORPORATION, a Delaware corporation
(the "Borrower"), the several banks and other financial institutions from time
to time parties to this Agreement (the "Lenders") and UNION BANK OF CALIFORNIA,
N.A., as Agent for the Lenders hereunder.

                              W I T N E S S E T H:
                              - - - - - - - - - -

                  WHEREAS, the Borrower has requested the Lenders to amend and
restate its Amended and Restated Credit Agreement (the "Existing Credit
Agreement") dated as of November 19, 1996 to make available a $122,000,000 term
loan facility to be used by the Borrower to refinance the indebtedness
outstanding on the date hereof under the Existing Credit Agreement and to pay
costs and expenses in connection with such refinancing.

                  NOW THEREFORE, the parties hereto hereby agree as follows:

                             SECTION 1. DEFINITIONS

                  1.1 DEFINED TERMS. As used in this Agreement, the following
terms shall have the following meanings:

                  "ACQUISITION CAPITAL EXPENDITURES": capital expenditures (i)
         made with respect to a Person or assets acquired pursuant to a
         Permitted Purchase within two years of the consummation of such
         Permitted Purchase or otherwise made with respect to a Broadcast
         Station within two years of the acquisition of such Broadcast Station
         or (ii) made in connection with the conversion of a Broadcast Station
         from an analog broadcast format to a digital broadcast format.

                  "AFFILIATE": as to any Person, any other Person (other than a
         Subsidiary) which, directly or indirectly, is in control of, is
         controlled by, or is under common control with, such Person. For
         purposes of this definition, "control" of a Person means the power,
         directly or indirectly, either to (a) vote 10% or more of the
         securities having ordinary voting power for the election of directors
         of such Person or (b) direct or cause the direction of the management
         and policies of such Person, whether by contract or otherwise.

                  "AGENT": Union Bank of California, N.A., together with its
         affiliates, as the arranger of the Commitments and as the agent for the
         Lenders under this Agreement and the other Loan Documents.

                  "AGREEMENT": this Amended and Restated Credit Agreement, as
         amended, supplemented or otherwise modified from time to time.

<PAGE>   7
                                                                               2

                  "APPLICABLE MARGIN": for Base Rate Loans, 1.75% per annum; and
         for Eurodollar Loans, 2.75% per annum.

                  "ASSET SALE": any sale, transfer or other disposition by the
         Borrower or any of its Subsidiaries of their respective assets
         (including any sale and leaseback of assets and any mortgage of real
         property), other than the sale or other disposition of property or
         assets in the ordinary course of business or an Asset Swap permitted by
         subsection 6.7(g) (PROVIDED that any Asset Swap permitted by subsection
         6.7(g) shall be deemed to be an Asset Sale to the extent provided for
         in said subsection).

                  "ASSET SWAP": any exchange, with any other Person, of (a)
         assets owned by the Borrower or any of its Subsidiaries other than any
         Top 25 TV Station for (b) Equivalent Assets of such other Person.

                  "ASSIGNEE": as defined in subsection 9.6(c).

                  "BASE RATE": with respect to each day, the greater on such day
         of (a) the per annum rate most recently determined by the Agent at its
         U.S. lending office from time to time as its base rate and (b) 1/2% per
         annum plus the Federal Funds Rate. Each change in the Base Rate shall
         take effect simultaneously with the corresponding change or changes in
         such base rate or the Federal Funds Rate, as the case may be. The Base
         Rate is not intended to be necessarily the lowest rate of interest
         charged by the Agent in connection with extensions of credit to
         debtors.

                  "BASE RATE LOANS": Loans the rate of interest applicable to
         which is based upon the Base Rate.

                  "BOARD": the Board of Governors of the Federal Reserve System.

                  "BORROWER PLEDGE AGREEMENT": the Second Amended and Restated
         Pledge Agreement to be executed and delivered by the Borrower,
         substantially in the form of Exhibit B, as the same may be amended,
         supplemented or otherwise modified from time to time.

                  "BORROWER SECURITY AGREEMENT": the Second Amended and Restated
         Security Agreement to be executed and delivered by the Borrower,
         substantially in the form of Exhibit C, as the same may be amended,
         supplemented or otherwise modified from time to time.

                  "BORROWING DATE": any Business Day specified in a notice
         pursuant to subsection 2.2 as a date on which the Borrower requests the
         Lenders to make Loans hereunder.

                  "BROADCAST STATION": any of the Owned Television Stations and
         LMA Television Stations, and "Broadcast Stations" means all such
         entities collectively.

<PAGE>   8
                                                                               3

                  "BUSINESS DAY": a day other than a Saturday, Sunday or other
         day on which commercial banks in New York City are authorized or
         required by law to close.

                  "CAPITAL LEASE": any lease of property, real or personal, the
         obligations of the lessee in respect of which are required in
         accordance with GAAP to be capitalized on a balance sheet of the
         lessee.

                  "CAPITAL STOCK": any and all shares, interests, participations
         or other equivalents (however designated) of capital stock of a
         corporation, any and all equivalent ownership interests in a Person
         (other than a corporation) and any and all warrants or options to
         purchase any of the foregoing.

                  "CASH": money, currency or a credit balance in a Deposit
         Account.

                  "CASH COLLATERAL AGREEMENT": the Cash Collateral Agreement to
         be executed and delivered by the Borrower, substantially in the form of
         Exhibit I, as the same may be amended, supplemented or otherwise
         modified from time to time.

                  "CASH EQUIVALENTS": (i) direct obligations of the United
         States or any agency thereof, or obligations guaranteed or insured by
         the United States, PROVIDED that in each case such obligations mature
         within one year from the date of acquisition thereof, (ii) certificates
         of deposit maturing within one year from the date of creation thereof
         issued by any United States national or state banking institution
         having capital, surplus and undivided profits aggregating at least
         $250,000,000 and rated at least A-1 by Standard & Poor's Corporation
         and P-1 by Moody's Investors Service, Inc., (iii) commercial paper with
         a maturity of 180 days or less issued by a corporation (except an
         Affiliate of the Borrower) organized under the laws of any state of the
         United States or the District of Columbia and rated at least A-1 by
         Standard & Poor's Corporation or at least P-1 by Moody's Investors
         Service, Inc. and (iv) repurchase agreements and reverse repurchase
         agreements relating to marketable direct obligations issued or
         unconditionally guaranteed by the United States or issued by an agency
         thereof and backed by the full faith and credit of the United States,
         in each case maturing within one year from the date of acquisition;
         PROVIDED that the terms of such agreements comply with the guidelines
         set forth in the Federal Financial Agreements of Depository
         Institutions with Securities Dealers and Others, as adopted by the
         Comptroller of the Currency and (v) tax-exempt auction rate securities
         and municipal preferred stock, in each case, subject to reset no more
         than 35 days after the date of acquisition and having a rating of at
         least AA by Standard & Poor's Ratings Services or AA by Moody's
         Investors Service, Inc.

                  "CERTIFICATE OF DESIGNATIONS": (i) the Certificate of
         Designations of Junior Cumulative Compounding Redeemable Preferred
         Stock of Paxson Communications Corporation dated as of December 22,
         1994, as amended as of the date hereof in accordance with the terms
         hereof and thereof, and (ii) the Certificate of Designations of
         Exchangeable Preferred Stock of Paxson Communications Corporation dated
         as of September 30, 1996.

<PAGE>   9
                                                                               4

                  "CLOSING DATE": the date on which the conditions precedent set
         forth in Section 4 shall be satisfied.

                  "CODE": the Internal Revenue Code of 1986, as amended from
         time to time.

                  "COLLATERAL": all assets of the Loan Parties, now owned or
         hereinafter acquired, upon which a Lien is purported to be created by
         any Security Document.

                  "COMMITMENT": as to any Lender, the obligation of such Lender
         to make a Loan to the Borrower hereunder in a principal amount equal to
         the amount set forth opposite such Lender's name on Schedule 1.1A.

                  "COMMITMENT PERCENTAGE": as to any Lender at any time, the
         percentage which the aggregate principal amount of such Lender's Loans
         then outstanding constitutes of the aggregate principal amount of the
         Loans then outstanding.

                  "COMMONLY CONTROLLED ENTITY": an entity, whether or not
         incorporated, which is under common control with the Borrower within
         the meaning of Section 4001 of ERISA or is part of a group which
         includes the Borrower and which is treated as a single employer under
         Section 414 of the Code.

                  "COMMUNICATIONS ACT": the Communications Act of 1934, as
         amended (including, without limitation, the Cable Communications Policy
         Act of 1984 and the Cable Television Consumer Protection and
         Competition Act of 1992) and all rules and regulations of the Federal
         Communications Commission, in each case as from time to time in effect.

                  "COMPLIANCE CERTIFICATE": as defined in subsection 5.1(b)(iv).

                  "CONSOLIDATED CAPITAL EXPENDITURES": for any period, the
         aggregate of all expenditures (whether paid in cash or accrued as a
         liability and including that portion of Capital Leases which is
         capitalized on the consolidated balance sheet of the Borrower) by the
         Borrower and its Subsidiaries during such period that, in conformity
         with GAAP, are included in "additions to property, plant or equipment"
         or comparable items reflected in the consolidated statement of changes
         in financial position of the Borrower and its Subsidiaries but, in any
         event, excluding expenditures (a) in respect of Acquisition Capital
         Expenditures, Permitted Purchases or Studio Construction Expenditures
         or (b) made in connection with a Recovery Event.

                  "CONSOLIDATED CASH INTEREST EXPENSE": for any period,
         Consolidated Interest Expense of the Borrower and its Subsidiaries, but
         excluding, however, amortization of discount, deferred financing costs
         and other items included in interest expense not payable or not
         actually paid in cash during such period (including, but not limited
         to, any interest on Indebtedness subordinated to the Obligations which
         is paid in kind).

<PAGE>   10
                                                                               5

                  "CONSOLIDATED DEBT SERVICE": for any period, the aggregate
         amount of all regularly scheduled payments of principal of and interest
         or dividends and fees on any Indebtedness required by the terms of such
         Indebtedness to be paid in cash by the Borrower or its Subsidiaries
         during such period, including, without limitation, any such payments
         with respect to the Loans and the Senior Subordinated Notes and any
         obligations paid with respect to Capital Leases.

                  "CONSOLIDATED FIXED CHARGES": for any period, without
         duplication, the sum of (i) Consolidated Debt Service, (ii)
         Consolidated Capital Expenditures to the extent actually made, (iii) to
         the extent actually paid in cash during such period, income tax expense
         (other than, to the extent otherwise included therein, current income
         tax expenses attributable to gains on Asset Sales) and (iv) the
         aggregate amount paid in cash during such period in connection with any
         dividend or other distribution or redemption, retirement, sinking fund
         or similar payment, purchase or other acquisition for value, direct or
         indirect, on account of any preferred capital stock (including, but not
         limited to, in respect of Cumulative Preferred Stock or Exchangeable
         Preferred Stock) of the Borrower or its Subsidiaries now or hereafter
         outstanding, except, in each case pursuant to refinancings permitted
         hereunder and entered into in the discretion of the Borrower.

                  "CONSOLIDATED INTEREST EXPENSE": for any period, the total
         interest expense (including that portion attributable to Capital Leases
         in accordance with GAAP and capitalized interest and the net cash costs
         associated with Interest Rate Agreements) of the Borrower and its
         Subsidiaries on a consolidated basis with respect to all outstanding
         Indebtedness of the Borrower and its Subsidiaries, including, without
         limitation, (i) all amounts payable to the Agent and the Lenders
         pursuant to subsection 2.9 and all commissions, discounts and other
         fees and charges owed with respect to letters of credit and bankers'
         acceptance financing and (ii) time brokerage and affiliate fees under
         an LMA Agreement relating to the financing of radio or television
         stations as to which the Borrower or any of its Subsidiaries has an
         agreement or option to acquire if such Station is not owned by the
         Borrower at the end of such period. In determining Consolidated
         Interest Expense for any period, there shall be (i) included all
         interest expense attributable to Indebtedness incurred or assumed by
         the Borrower or any of their Subsidiaries during the period in
         connection with any Permitted Purchase as if such Indebtedness was
         incurred or assumed on the day before the first day of such period and
         bore interest from the first day of such period until the date of such
         incurrence or assumption at a rate per annum equal to the weighted
         average rate of interest on the other Indebtedness outstanding during
         such period and (ii) excluded Consolidated Interest Expense
         attributable to that portion of the principal amount of Indebtedness
         repaid in connection with an Asset Sale as if such portion of the
         principal amount of Indebtedness was prepaid on the day before the
         first day of such period.

                  "CONSOLIDATED NET INCOME": for any period, the consolidated
         net income (or loss) of the Borrower and its Subsidiaries, determined
         on a consolidated basis in accordance with GAAP; PROVIDED that there
         shall be excluded (a) the income (or deficit) of any Person

<PAGE>   11
                                                                               6

         accrued prior to the date it becomes a Subsidiary of the Borrower or is
         merged into or consolidated with the Borrower or any of its
         Subsidiaries, (b) the income (or deficit) of any Person (other than a
         Subsidiary of the Borrower) in which the Borrower or any of its
         Subsidiaries has an ownership interest, except to the extent that any
         such income is actually received by the Borrower or such Subsidiary in
         the form of dividends or similar distributions, (c) the undistributed
         earnings of any Subsidiary of the Borrower to the extent that the
         declaration or payment of dividends or similar distributions by such
         Subsidiary is not at the time permitted by the terms of any Contractual
         Obligation (other than under any Loan Document) or Requirement of Law
         applicable to such Subsidiary, (d) any after-tax gains or losses
         attributable to Asset Sales or returned surplus assets of any Pension
         Plan, and (e) (to the extent not included in clauses (a) through (d)
         above) any net extraordinary, unusual or non-recurring gains or losses.

                  "CONSOLIDATED OPERATING CASH FLOW": for any period, the sum
         (without duplication) of the amounts for such period of (a)
         Consolidated Net Income, (b) Consolidated Interest Expense, (c) taxes
         payable by the Borrower and its Subsidiaries on a consolidated basis
         which reduced Consolidated Net Income, (d) total depreciation expense,
         (e) total amortization expense including, without limitation,
         Programming Amortization Expense, (f) other non-cash items reducing
         Consolidated Net Income, and (g) whether or not includable as a
         separate item in the statement of such Consolidated Net Income for such
         period, losses on sales of assets LESS the sum (without duplication) of
         the amounts for such period of (i) Programming Rights Payments, (ii)
         Program Development Expenses, (iii) non-cash items increasing
         Consolidated Net Income, (iv) whether or not includable as a separate
         item in the statement of such Consolidated Net Income for such period,
         gains on the sales of assets, and (v) consolidated interest income, all
         of the foregoing as determined on a consolidated basis for the Borrower
         and its Subsidiaries in conformity with GAAP. For the purposes of
         calculating Consolidated Operating Cash Flow for any period, any
         acquisition by the Borrower or any Subsidiary permitted pursuant to the
         terms hereof shall be deemed to have occurred on the first day of such
         period, any Asset Sale by the Borrower or any Subsidiary shall be
         deemed to have occurred as of the day before the first day of such
         period, and Consolidated Operating Cash Flow shall be adjusted to give
         effect to such acquisition or Asset Sale in accordance with the
         foregoing.

                  "CONSOLIDATED TOTAL ASSETS": at any date of determination, all
         assets of the Borrower and its Subsidiaries at such date, determined on
         a consolidated basis in accordance with GAAP.

                  "CONSOLIDATED TOTAL DEBT": as at any date of determination,
         without duplication, the aggregate amount of (a) all Indebtedness
         (including, without limitation, the Loans) other than preferred capital
         stock PLUS (b) the aggregate amount of all Contingent Obligations
         (other than any guaranty of the Obligations by any Subsidiary of the
         Borrower), in each case, of the Borrower and its Subsidiaries
         determined on a consolidated basis in accordance with GAAP.

<PAGE>   12
                                                                               7

                  "CONTINGENT OBLIGATION": as applied to any Person, any direct
         or indirect liability, contingent or otherwise, of that Person (a) with
         respect to any indebtedness, lease, dividend or other obligation of
         another if the primary purpose or intent thereof by the Person
         incurring the Contingent Obligation is to provide assurance to the
         obligee of such obligation of another that such obligation of another
         will be paid or discharged, or that any agreements relating thereto
         will be complied with, or that the holders of such obligation will be
         protected (in whole or in part) against loss in respect thereof, (b)
         with respect to any letter of credit issued for the account of that
         Person or as to which that Person is otherwise liable for reimbursement
         of drawings, or (c) under Interest Rate Agreements. Contingent
         Obligations shall include, without limitation, (i) the direct or
         indirect guaranty, endorsement (otherwise than for collection or
         deposit in the ordinary course of business), co-making, discounting
         with recourse or sale with recourse by such Person of the obligation of
         another, (ii) the obligation to make take-or-pay or similar payments if
         required regardless of non-performance by any other party or parties to
         an agreement, and (iii) any liability of such Person for the
         obligations of another through any agreement (contingent or otherwise)
         (x) to purchase, repurchase or otherwise acquire such obligation or any
         security therefor, or to provide funds for the payment or discharge of
         such obligation (whether in the form of loans, advances, stock
         purchases, capital contributions or otherwise), or (y) to maintain the
         solvency or any balance sheet item, level of income or financial
         condition of another, if in the case of any agreement described under
         subclauses (x) or (y) of this sentence, the primary purpose or intent
         thereof is as described in the preceding sentence. The amount of any
         Contingent Obligation (other than Interest Rate Agreements) as of any
         date shall be equal to the amount of the obligation as of any date so
         guaranteed or otherwise supported. The amount of any Interest Rate
         Agreement as of any date shall be equal to the aggregate amount that
         would be payable by such Person if such Interest Rate Agreement were
         terminated on such date as a result of a default thereunder by such
         Person.

                  "CONTINUED LOANS": as defined in subsection 2.1.

                  "CONTRACTUAL OBLIGATION": as to any Person, any provision of
         any security issued by such Person or of any agreement (credit or
         otherwise), instrument or other undertaking to which such Person is a
         party or by which it or any of its property is bound.

                  "CORE BUSINESS": the ownership and operation of radio stations
         (in a number not exceeding two), network television stations and cable
         television channels; the production or purchase of television
         programming; the ownership of up to a 30% ownership interest in The
         Travel Channel; the production of travel transaction television
         programming and consulting in connection therewith; the exhibition of
         television programming via one or more satellite television networks
         owned by one or more Persons other than the Borrower or any of its
         Subsidiaries; and long form advertising production, in each case
         located in the United States, Puerto Rico or the Virgin Islands.

                  "CUMULATIVE PREFERRED STOCK": the preferred stock of the
         Borrower designated the Junior Cumulative Compounding Redeemable
         Preferred Stock, issued by the Borrower

<PAGE>   13
                                                                               8

         pursuant to, and with such rights, restrictions, privileges and
         preferences as set forth in, its Certificate of Designation.

                  "DEFAULT": any of the events specified in Section 7, whether
         or not any requirement for the giving of notice, the lapse of time, or
         both, or any other condition, has been satisfied.

                  "DEPOSIT ACCOUNT": a demand, time, savings, passbook or like
         account with a bank, savings and loan association, credit union or like
         organization, other than an account evidenced by a negotiable
         certificate of deposit.

                  "DOLLARS" and "$": dollars in lawful currency of the United
         States of America.

                  "EMPLOYEE BENEFIT PLAN": any employee benefit plan within the
         meaning of Section 3(3) of ERISA which is maintained for employees of
         the Borrower or any ERISA Affiliates.

                  "ENVIRONMENTAL CLAIM": any accusation, allegation, notice of
         violation, claim, demand, abatement order or other order or direction
         (conditional or otherwise) by any governmental authority or any Person
         for any damage, including, without limitation, personal injury
         (including sickness, disease or death), tangible or intangible property
         damage, contribution, indemnity, indirect or consequential damages,
         damage to the environment, nuisance, pollution, contamination or other
         adverse effects on the environment, or for fines, penalties or
         restrictions, resulting from or based upon (i) the existence of a
         Release (whether sudden or non-sudden or accidental or non-accidental),
         of, or exposure to, any Hazardous Material, in, into or onto the
         environment, (ii) the use, handling, transportation, storage, treatment
         or disposal of Hazardous Materials, or (iii) the violation, or alleged
         violation, of any Environmental Laws.

                  "ENVIRONMENTAL LAWS": any and all foreign, Federal, state,
         local or municipal laws, rules, orders, regulations, statutes,
         ordinances, codes, decrees, requirements of any Governmental Authority
         or other Requirements of Law (including common law) regulating,
         relating to or imposing liability or standards of conduct concerning
         protection of human health or the environment, as now or may at any
         time hereafter be in effect.

                  "EQUITY PREPAYMENT PERCENTAGE": 75%; PROVIDED, that, with
         respect to Net Cash Proceeds from the issuance of equity Securities
         (including preferred Capital Stock) received at any time when no
         Default or Event of Default shall have occurred and be continuing, the
         Equity Prepayment Percentage shall be reduced to 25% (i) if the
         Leverage Ratio as at the last day of the then most recently completed
         fiscal period of the Borrower for which financial statements shall have
         been delivered pursuant to subsection 5.1 is less than 4.5 to 1.0. or
         (ii) at the point at which the application of Net Cash Proceeds
         pursuant to subsection 2.6(a) shall have reduced the Leverage Ratio to
         less than 4.5 to 1.0 (by reducing the Loans then outstanding).

<PAGE>   14
                                                                               9

                  "EQUIVALENT ASSETS": of (i) any television station (other than
         a Top 25 TV Station): any other television station or television
         stations; or (ii) any Non-Core Business: any Core Business.

                  "ERISA": the Employee Retirement Income Security Act of 1974,
         as amended from time to time.

                  "ERISA AFFILIATE": the Borrower and (a) any corporation which
         is a member of a controlled group of corporations within the meaning of
         Section 414(b) of the Code of which the Borrower is a member; (b) any
         trade or business (whether or not incorporated) which is a member of a
         group of trades or businesses under common control within the meaning
         of Section 414(c) of the Code of which the Borrower is a member; and
         (c) any member of an affiliated service group within the meaning of
         Section 414(m) or (o) of the Code of which the Borrower, any
         corporation described in clause (i) above or any trade or business
         described in clause (ii) above is a member.

                  "ERISA EVENT": (a) the occurrence of a reportable event within
         the meaning of Section 4043 of ERISA with respect to any Pension Plan,
         (b) a failure to meet the minimum funding standard of Section 412 of
         the Code or of Section 302 of ERISA, including, without limitation, the
         failure to make on or before its due date a required installment under
         Section 412(m) of the Code or Section 302(e) of ERISA, (regardless of
         the issuance of any waivers in accordance with Section 412(d) of the
         Code) and any request for a waiver under Section 412(d) of the Code in
         connection with any Pension Plan; (c) the provision of the
         administrator of any Pension Plan of a notice pursuant to Section
         4041(a)(2) of ERISA to terminate such plan pursuant to Section 4041(c)
         of ERISA; (d) the withdrawal by the Borrower or any ERISA Affiliate
         from a Pension Plan during a plan year for which it was a "substantial
         employer" within the meaning of Section 4001(a)(2) of ERISA; (e) the
         institution by the PBGC of proceedings to terminate a Pension Plan
         pursuant to Section 4042 of ERISA, or the occurrence of any event or
         condition which the Borrower or any ERISA Affiliate reasonably
         anticipates would constitute grounds under Section 4042 of ERISA for
         the termination of, or the appointment of a trustee to administer, a
         Pension Plan; (f) the withdrawal by the Borrower or any ERISA Affiliate
         in a complete or partial withdrawal (within the meaning of Section 4203
         or 4205 of ERISA) from a Multiemployer Plan, or the receipt by the
         Borrower or any ERISA Affiliate of notice from a Multiemployer Plan
         that it is in reorganization or insolvency pursuant to Section 4241 or
         4245 of ERISA or that it intends to terminate or has terminated under
         Section 4041A of ERISA; (g) the imposition on the Borrower or any ERISA
         Affiliate of fines, penalties, taxes or related charges under Chapter
         43 of the Code or under Sections 502(c), (i) or (l) or 4071 of ERISA;
         (h) the assertion of a material claim (other than routine claims for
         benefits) against any Employee Benefit Plan or the assets thereof, or
         against the Borrower or any ERISA Affiliate in connection with any such
         plan; or (i) receipt from the Service of notice of the failure of any
         Pension Plan to qualify under Section 401(a) of the Code, or the
         failure of any trust forming part of a Pension Plan to fail to qualify
         for exemption from taxation under Section 501(a) of the Code.

<PAGE>   15
                                                                              10

                  "EUROCURRENCY RESERVE REQUIREMENTS": for any day as applied to
         a Eurodollar Loan, the aggregate (without duplication) of the rates
         (expressed as a decimal fraction) of reserve requirements in effect on
         such day (including, without limitation, basic, supplemental, marginal
         and emergency reserves under any regulations of the Board or other
         Governmental Authority having jurisdiction with respect thereto)
         dealing with reserve requirements prescribed for eurocurrency funding
         (currently referred to as "Eurocurrency Liabilities" in Regulation D of
         the Board) maintained by a member bank of the Federal Reserve System.

                  "EURODOLLAR BASE RATE": with respect to each day during each
         Interest Period pertaining to a Eurodollar Loan, the rate per annum
         determined by the Agent to be equal to the arithmetic mean of the rates
         per annum offered by leading banks in the London interbank market at
         approximately 11:00 a.m. (London time) two Working Days prior to the
         beginning of such Interest Period, as quoted on Page 3750 of the Dow
         Jones Market Service (or otherwise on such service) or, in the event
         that such Page 3750 shall at such time quote such rates for fewer than
         two leading banks, the rate at which the Agent is offered Dollar
         deposits at or about 11:00 A.M. (London time), two Working Days prior
         to the beginning of such Interest Period in the London interbank market
         for delivery on the first day of such Interest Period for the number of
         days comprised therein and in an amount comparable to the amount of the
         Agent's Eurodollar Loan to be outstanding during such Interest Period.

                  "EURODOLLAR LOANS": Loans the rate of interest applicable to
         which is based upon the Eurodollar Rate.

                  "EURODOLLAR RATE": with respect to each day during each
         Interest Period pertaining to a Eurodollar Loan, a rate per annum
         determined for such day in accordance with the following formula
         (rounded upward to the nearest 1/16th of 1%):

                              EURODOLLAR BASE RATE
                    ----------------------------------------
                    1.00 - Eurocurrency Reserve Requirements

                  "EVENT OF DEFAULT": any of the events specified in Section 7,
         PROVIDED that any requirement for the giving of notice, the lapse of
         time, or both, or any other condition, has been satisfied.

                  "EXCHANGEABLE PREFERRED STOCK": the preferred stock of the
         Borrower designated the 12 1/2% Cumulative Exchangeable Preferred
         Stock, issued by the Borrower pursuant to, and with such rights,
         restrictions, privileges and preferences as set forth in its
         Certificate of Designations.

                  "EXCHANGE DEBENTURES": 12 1/2% Exchange Debentures due 2006,
         which may be issued by the Borrower pursuant to, and with such rights,
         restrictions, privileges and preferences as set forth in the Exchange
         Debenture Indenture.

<PAGE>   16
                                                                              11

                  "EXCHANGE DEBENTURE INDENTURE": the Indenture dated as of
         September 30, 1996 pursuant to which the Borrower may issue the
         Exchange Debentures, as the same may be amended, supplemented or
         otherwise modified from time to time.

                  "EXCLUDED ASSET SALES": Asset Sales in respect of (i) FCC
         Licenses and the towers and broadcast equipment used in the operation
         of the Broadcast Stations to which such FCC Licenses relate, the
         aggregate Net Cash Proceeds of which during the term of this Agreement
         do not exceed $10,000,000 and (ii) the assets or property (other than
         assets of a type described in clause (i) above) of Broadcast Stations
         the aggregate Net Cash Proceeds of which during the term of this
         Agreement do not exceed $10,000,000.

                  "EXISTING CREDIT AGREEMENT": as defined in the recitals to
         this Agreement.

                  "FACILITIES": any and all real property (including, without
         limitation, all buildings, fixtures or other improvements located
         thereon) now, or hereafter, owned, leased, operated or used by the
         Borrower or any of its Subsidiaries or any of their respective
         predecessors.

                  "FCC": the Federal Communications Commission and any successor
         governmental agency performing functions similar to those performed by
         the Federal Communications Commission on the date hereof.

                  "FCC LICENSE": any of the licenses, permits or other
         authorizations issued by the FCC relating to or necessary for the
         operation of the Broadcast Stations, the loss of which could reasonably
         be expected to have a Material Adverse Effect, including, without
         limitation, those listed on Schedule 3.1(e) hereto.

                  "FEDERAL FUNDS RATE": with respect to each day, the rate per
         annum (rounded upward, if necessary, to the nearest 1/16 of 1%) offered
         in the interbank market to the Agent as the overnight "federal funds
         rate" at or about 10:00 A.M., Los Angeles time, on such day (or, if
         such day is not a Business Day, for the next preceding Business Day).

                  "FINANCIAL STATEMENTS": the audited consolidated balance
         sheet, statement of operations, cash flows and shareholders' equity for
         the Borrower and its consolidated Subsidiaries for the fiscal years
         ended December 31, 1996 and 1997.

                  "GAAP": generally accepted accounting principles in the United
         States of America consistent with those utilized in preparing the
         audited financial statements referred to in subsection 3.3.

                  "GOVERNMENTAL AUTHORITY": any nation or government, any state
         or other political subdivision thereof and any entity exercising
         executive, legislative, judicial, regulatory or administrative
         functions of or pertaining to government.

<PAGE>   17
                                                                              12

                  "HAZARDOUS MATERIALS": (a) any chemical, material or substance
         defined as or included in the definition of "hazardous substances",
         "hazardous wastes", "hazardous materials", "extremely hazardous waste",
         "restricted hazardous waste", or "toxic substances" or words of similar
         import under any applicable Environmental Laws, (b) any oil, petroleum
         or petroleum derived substance, any drilling fluids, produced waters
         and other wastes associated with the exploration, development or
         production of crude oil, any flammable substances or explosives, any
         radioactive materials, any hazardous wastes or substances, any toxic
         wastes or substances or any other materials or pollutants which (i)
         pose a material hazard to any property of the Borrower or any of its
         Subsidiaries or to Persons on or about such property or (ii) cause such
         property to be in violation of any Environmental Laws, (c) asbestos in
         any form which is or could become friable, urea formaldehyde foam
         insulation, polychlorinated biphenyls, and (d) any other chemical,
         material or substance, exposure to which is prohibited, limited or
         regulated by any governmental authority or may or could pose a hazard
         to the health and safety of the owners, occupants or any Persons
         surrounding the Facilities.

                  "INDEBTEDNESS": of any Person at any date, (a) all
         indebtedness of such Person for borrowed money or for the deferred
         purchase price of property or services (other than current trade
         liabilities incurred in the ordinary course of business and payable in
         accordance with customary practices), (b) any other indebtedness of
         such Person which is evidenced by a note, bond, debenture or similar
         instrument, (c) all obligations of such Person under Capital Leases,
         (d) all obligations of such Person in respect of acceptances issued or
         created for the account of such Person, (e) all liabilities secured by
         any Lien on any property owned by such Person even though such Person
         has not assumed or otherwise become liable for the payment thereof and
         (f) the liquidation value of any preferred capital stock of such Person
         its Subsidiaries held by any Person other than such Person and its
         wholly owned Subsidiaries.

                  "INTELLECTUAL PROPERTY": all patents, trademarks, trade names,
         copyrights, technology, know-how and processes used in or necessary for
         the conduct of business of the Borrower and its Subsidiaries as
         currently conducted that are material to the condition (financial or
         other), business, or operations of the Borrower and its Subsidiaries
         taken as a whole.

                  "INTEREST PAYMENT DATE": (a) as to any Base Rate Loan, the
         last day of each March, June, September and December and the date on
         which such Loan is paid or converted into a Loan of another Type, (b)
         as to any Eurodollar Loan having an Interest Period of three months or
         less, the last day of such Interest Period, and (c) as to any
         Eurodollar Loan having an Interest Period longer than three months,
         each day which is three months or a whole multiple thereof, after the
         first day of such Interest Period and the last day of such Interest
         Period.

<PAGE>   18
                                                                              13

                  "INTEREST PERIOD": with respect to any Eurodollar Loan:

                           (a) initially, the period commencing on the borrowing
                  or conversion date, as the case may be, with respect to such
                  Eurodollar Loan and ending one, two, three, six, nine or
                  twelve months thereafter, as selected by the Borrower in its
                  notice of borrowing or notice of conversion, as the case may
                  be, given with respect thereto; and

                           (b) thereafter, each period commencing on the last
                  day of the next preceding Interest Period applicable to such
                  Eurodollar Loan and ending one, two, three, six, nine or
                  twelve months thereafter, as selected by the Borrower by
                  irrevocable notice to the Agent not less than three Working
                  Days prior to the last day of the then current Interest Period
                  with respect thereto;

         PROVIDED that all of the foregoing provisions relating to Interest
         Periods are subject to the following:

                           (1) if any Interest Period would otherwise end on a
                  day that is not a Working Day, such Interest Period shall be
                  extended to the next succeeding Working Day unless the result
                  of such extension would be to carry such Interest Period into
                  another calendar month in which event such Interest Period
                  shall end on the immediately preceding Working Day;

                           (2) any Interest Period that begins on the last
                  Working Day of a calendar month (or on a day for which there
                  is no numerically corresponding day in the calendar month at
                  the end of such Interest Period) shall end on the last Working
                  Day of a calendar month; and

                           (3) the Borrower shall select Interest Periods with
                  respect to any Eurodollar Loan so as not to require a payment
                  or prepayment of any such Eurodollar Loan during an Interest
                  Period for such Loan.

                  "INTEREST RATE AGREEMENT": any interest rate swap agreement,
         interest rate cap agreement, interest rate collar agreement or other
         similar agreement or arrangement designed to protect the Borrower or
         any of its Subsidiaries against fluctuations in interest rates.

                  "INVESTMENT": (a) any direct or indirect purchase or other
         acquisition by the Borrower or any of its Subsidiaries of, or a
         beneficial interest in, stock or other Securities of any other Person,
         or (b) any direct or indirect loan, advance (other than advances to
         employees for moving, entertainment and travel expenses, drawing
         accounts and similar expenditures in the ordinary course of business)
         or capital contribution by the Borrower or any of its Subsidiaries to
         any other Person, including all indebtedness and accounts receivable
         from that other Person that are not current assets or did not arise
         from sales to that other Person in the ordinary course of business. The
         amount of any Investment shall

<PAGE>   19
                                                                              14

         be the original cost of such Investment plus the cost of all additions
         thereto, without any adjustments for increases or decreases in value,
         or write-ups, write-downs or write-offs with respect to such
         investment. Investments shall not include any purchase of Program
         Rights in the ordinary course of business.

                  "JOINT VENTURE": a joint venture, partnership or other similar
         arrangement, whether in corporate, partnership or other legal form.

                  "LEVERAGE RATIO": at any date of determination, the ratio of
         (a) Consolidated Total Debt of the Borrower and its Subsidiaries on
         such date to (b) Consolidated Operating Cash Flow for the 12 month
         period ended on the last day of the month for which the Borrower shall
         have then most recently delivered financial statements pursuant to
         subsection 5.1(b)(i).

                  "LICENSE SUBSIDIARY": each Subsidiary of the Borrower which
         holds any FCC License relating to a Broadcast Station as specified on
         Schedule 1.1C; and "License Subsidiaries" means all such Persons
         collectively.

                  "LIEN": any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, encumbrance, lien (statutory or other), charge or
         other security interest or any preference, priority or other security
         agreement or preferential arrangement of any kind or nature whatsoever
         (including, without limitation, any conditional sale or other title
         retention agreement and any Capital Lease having substantially the same
         economic effect as any of the foregoing).

                  "LMA AGREEMENTS": (i) each of the agreements pursuant to which
         certain of the Loan Parties operate an LMA Television Station, together
         with any amendments, supplements or modifications thereto, as the same
         may be amended, restated, supplemented or otherwise modified from time
         to time in accordance with the terms hereof and thereof, and (ii) any
         other local marketing agreements, local management agreements, local
         sales agreements, time brokerage agreements or similar arrangements
         entered into by the Borrower or any of its Subsidiaries to the extent
         permitted hereby.

                  "LMA TELEVISION STATION": each of the television stations
         (including, without limitation, those identified on Schedule 1.1C)
         operated by the Borrower or its Subsidiaries pursuant to LMA
         Agreements.

                  "LOAN DOCUMENTS": this Agreement, any Notes and the Security
         Documents.

                  "LOAN PARTIES": the Borrower and each Subsidiary of the
         Borrower which is a party to a Loan Document.

                  "LOANS": as defined in subsection 2.1.

<PAGE>   20
                                                                              15

                  "MARGIN STOCK": has the meaning assigned to that term in
         Regulation U of the Board as in effect from time to time.

                  "MATERIAL ADVERSE EFFECT": a material adverse effect on (a)
         the business, operations, property, condition (financial or otherwise)
         or prospects of the Borrower and its Subsidiaries taken as a whole or
         (b) the validity or enforceability of this or any of the other Loan
         Documents or the rights or remedies of the Agent or the Lenders
         hereunder or thereunder.

                  "MULTIEMPLOYER PLAN": a "multiemployer plan" within the
         meaning of Section 4001(a)(3) of ERISA to which the Borrower or any
         ERISA Affiliate has an obligation to contribute or in respect of which
         the Borrower or any ERISA Affiliate has any outstanding liability,
         contingent or otherwise.

                  "NET CASH PROCEEDS": in connection with:

                  (a) any Asset Sale or Recovery Event, the proceeds thereof in
         the form of Cash and Cash Equivalents (including any such proceeds
         received by way of deferred payment of principal pursuant to a note or
         installment receivable or purchase price adjustment receivable or
         otherwise, but only as and when received), net of customary "hold
         backs," reserves and escrows for indemnification (in each case, until
         such time as such cash is released to the Borrower or any Subsidiary),
         attorneys' fees, accountants' fees, investment banking fees, amounts
         required to be applied to the repayment of Indebtedness secured by a
         Lien expressly permitted hereunder on any asset which is the subject of
         such Asset Sale or Recovery Event (other than any Lien in favor of the
         Agent for the benefit of the Lenders) and other customary fees and
         expenses actually incurred in connection therewith and net of taxes
         paid or reasonably estimated to be payable as a result thereof (after
         taking into account any available tax credits or deductions and any tax
         sharing arrangements); and

                  (b) any issuance or sale of equity securities or debt
         securities or instruments or the incurrence of loans, the Cash proceeds
         received from such issuance or incurrence, net of attorneys' fees,
         investment banking fees, accountants' fees, underwriting discounts and
         commissions and other customary fees and expenses actually incurred in
         connection therewith.

                  "NETWORK START-UP": shall exist when and so long as the
         Borrower and its Subsidiaries shall operate a television network that
         (a) is available in television markets containing at least 68% of
         television households located in the United States, Puerto Rico or the
         Virgin Islands through, without duplication, a Broadcast Station, a
         standard affiliation agreement, cable carriage arrangement or
         television stations as to which the Borrower or any of its Subsidiaries
         are under contract to purchase and reasonably expects to purchase
         within one year of the date of determination (excluding in each case
         low power television systems); (b) exhibits traditional prime time
         programming 100% of the time during the hours of 6:00 p.m. to 11:00
         p.m., Monday through Sunday and (c)

<PAGE>   21
                                                                              16

         exhibits traditional programming 75% of the time during the hours of 6
         a.m. to midnight, Monday through Friday.

                  "NON-EXCLUDED TAXES": as defined in subsection 2.15.

                  "NOTE": as defined in subsection 2.4(e).

                  "OBLIGATIONS": the unpaid principal of and interest on
         (including, without limitation, interest accruing after the maturity of
         the Loans and interest accruing after the filing of any petition in
         bankruptcy, or the commencement of any insolvency, reorganization or
         like proceeding, relating to the Borrower, whether or not a claim for
         post-filing or post-petition interest is allowed in such proceeding)
         the Notes and all other obligations and liabilities of the Borrower to
         the Agent or to any Lender, whether direct or indirect, absolute or
         contingent, due or to become due, or now existing or hereafter
         incurred, which may arise under, out of, or in connection with, this
         Agreement, any other Loan Document, any Interest Rate Agreement entered
         into with any Lender, whether on account of principal, interest, fees,
         indemnities, costs, expenses (including, without limitation, all fees,
         charges and disbursements of counsel to the Agent or to any Lender that
         are required to be paid by the Borrower pursuant hereto) or otherwise.

                  "OPERATING LEASE": as applied to any Person, any lease
         (including, without limitation, any leases that may be terminated by
         the lessee at any time) of any property (whether real, personal or
         mixed) of such Person that is not a Capital Lease other than any such
         lease under which such Person is the lessor.

                  "OWNED TELEVISION STATION": each of the television stations
         (including, without limitation, those identified on Schedule 3.1(f))
         owned by the Borrower or its Subsidiaries and such other television
         stations acquired pursuant to a Permitted Purchase.

                  "OWNERSHIP REPORT": the Ownership Report of each Loan Party
         most recently filed with the FCC.

                  "PARTICIPANT": as defined in subsection 9.6(b).

                  "PAXSON": Lowell W. Paxson, residing on the date hereof at 780
         South Ocean Boulevard, Palm Beach, Florida 33480.

                  "PBGC": the Pension Benefit Guaranty Corporation established
         pursuant to Subtitle A of Title IV of ERISA.

                  "PENSION PLAN": any Employee Benefit Plan, other than a
         Multiemployer Plan, which is subject to the provisions of Title IV of
         ERISA.

                  "PERMITTED ACQUISITION": has the meaning assigned to that term
         in subsection 6.4(f).

<PAGE>   22
                                                                              17

                  "PERMITTED ENCUMBRANCES": the following types of Liens
         (PROVIDED that enforcement of the same will not have a Material Adverse
         Effect except with respect to clauses (i) and (v) hereof):

                           (i) Liens for taxes, assessments or governmental
         charges or claims the payment of which is not, at the time, required by
         subsection 5.3;

                           (ii) Liens of carriers, warehousemen and other liens
         imposed by law incurred in the ordinary course of business for sums not
         yet delinquent or being contested in good faith, if such reserve or
         other appropriate provision, if any, as shall be required by GAAP shall
         have been made therefor;

                           (iii) Liens of mechanics and materialmen for sums not
         yet due or the validity of which is being contested in good faith;

                           (iv) Liens (other than any Lien imposed pursuant to
         Section 401(a)(29) or Section 412(n) of the Code or under ERISA or any
         Environmental Law) incurred or deposits made in the ordinary course of
         business in connection with workers' compensation, unemployment
         insurance and other types of social security, or to secure the
         performance of tenders, statutory obligations, surety and appeal bonds,
         bids, leases, government contracts, trade contracts, performance and
         return-of-money bonds and other similar obligations (exclusive of
         obligations for the payment of borrowed money) and deposits made
         pursuant to the terms of Purchase Agreements permitted hereunder;

                           (v) any attachment or judgment Lien not constituting
         an Event of Default under subsection 7(j);

                           (vi) leases or subleases granted to others not
         interfering in any material respect with the business of the Borrower
         or any of its Subsidiaries;

                           (vii) easements, rights-of-way, restrictions, minor
         defects, encroachments or irregularities in title and other similar
         charges or encumbrances not interfering in any material respect with
         the ordinary conduct of the business of the Borrower or any of its
         Subsidiaries; and

                           (viii) Liens arising from filing UCC financing
         statements relating solely to leases permitted by this Agreement.

                  "PERMITTED PURCHASE": any of (i) a Permitted Acquisition, (ii)
         a Preapproved Acquisition or (iii) any other acquisition of a Core
         Business permitted hereunder or otherwise consented to by the Required
         Lenders from time to time in accordance with the terms hereof.

<PAGE>   23
                                                                              18

                  "PERSON": an individual, partnership, corporation, business
         trust, joint stock company, trust, unincorporated association, joint
         venture, Governmental Authority or other entity of whatever nature.

                  "PLAN": at a particular time, any employee benefit plan which
         is covered by ERISA and in respect of which the Borrower or a Commonly
         Controlled Entity is (or, if such plan were terminated at such time,
         would under Section 4069 of ERISA be deemed to be) an "employer" as
         defined in Section 3(5) of ERISA.

                  "PLEDGE AGREEMENTS": the collective reference to the Borrower
         Pledge Agreement and the Subsidiaries Pledge Agreement.

                  "PREAPPROVED ACQUISITION": each of the acquisitions listed on
         Schedule 1.1B, PROVIDED that such acquisition is effected pursuant to
         the Purchase Agreement relating to such acquisition.

                  "PROGRAM": any television series or other program produced or
         distributed for television release (including any syndicated series or
         other program regardless of its medium of initial exploitation), in
         each case whether recorded on film, videotape, audiotape, cassette,
         cartridge, disc or by any other means, method, process or device,
         whether now known or hereafter developed.

                  "PROGRAM CONTRACTS": all contracts for television broadcast
         rights of Programs, including, but not limited to, film, music and
         related audio rights and syndicated series exhibition rights acquired
         under license agreements.

                  "PROGRAM DEVELOPMENT EXPENSES": for any period, the aggregate
         cash payments made by the Borrower and/or any of its Subsidiaries
         during such period in connection with the development or production of
         television programming.

                  "PROGRAM RIGHTS": any right, whether arising under Program
         Contracts or otherwise, to broadcast, sell, distribute, subdistribute,
         exhibit, lease, sublease, license, sublicense or otherwise exploit
         Programs.

                  "PROGRAM RIGHTS COSTS": the maximum amount which the Borrower
         and/or any of its Subsidiaries or its or their co-venturers have
         furnished or have contractually committed to furnish (to the extent
         such commitments shall be reflected as an asset or liability on the
         consolidated balance sheet and the notes thereto of the Borrower)
         toward the production or acquisition by the Borrower and/or any of its
         Subsidiaries or its or their co-venturers of any Program Rights with
         respect to any Program.

                  "PROGRAMMING AMORTIZATION EXPENSE": for any period, total
         amortization expense of the Borrower and/or any of its Subsidiaries for
         such period which is directly attributable to Programs, Program Rights
         or Program Contracts, determined on a consolidated basis in conformity
         with GAAP.

<PAGE>   24
                                                                              19

                  "PROGRAMMING OBLIGATIONS": at any date of determination, all
         direct or indirect liabilities, contingent or otherwise, with respect
         to Program Contracts, Programs or Program Rights (including, without
         limitation, all Program Rights Costs) of the Borrower and its
         Subsidiaries, to the extent reflected on the consolidated balance sheet
         and the notes thereto of the Borrower and its Subsidiaries prepared in
         conformity with GAAP.

                  "PROGRAMMING RIGHTS PAYMENTS": for any period, the aggregate
         cash payments scheduled to be made by the Borrower and/or any of its
         Subsidiaries for such period in respect of Programming Obligations,
         determined on a consolidated basis in conformity with GAAP.

                  "PURCHASE AGREEMENTS": the agreements, contracts and other
         documents pursuant to which the Borrower or its Subsidiaries will
         consummate a Permitted Purchase.

                  "RECOVERY EVENT": any settlement of or payment in respect of
         any property or casualty insurance claim or any condemnation proceeding
         relating to any asset (other than inventory) of the Borrower or any of
         its Subsidiaries (excluding to the extent, and only to the extent, that
         within 180 days of the casualty or condemnation proceeding upon which
         such settlement or payment is based, such Person commences and
         thereafter diligently pursues the repair or replacement of the property
         affected by such event).

                  "REGISTER": as defined in subsection 9.6(d).

                  "RELATED DOCUMENTS": (a) the Purchase Agreements and (b) the
         LMA Agreements.

                  "RELEASE": any release, spill, emission, leaking, pumping,
         pouring, injection, escaping, deposit, disposal, discharge, dispersal,
         leaching, or migration into the indoor or outdoor environment
         (including, without limitation, the abandonment or disposal of any
         barrels, containers or other closed receptacles containing any
         Hazardous Materials), or into or out of any Facility, including the
         movement of any Hazardous Material through the air, soil, surface
         water, groundwater or property.

                  "REQUIRED LENDERS": at a particular time, the holders of at
         least 51% of the aggregate unpaid principal amount of the Loans, or, if
         no Loans are outstanding, Lenders the Commitment Percentages of which
         aggregate at least 51%.

                  "REQUIREMENT OF LAW": as to any Person, the Certificate of
         Incorporation and By-Laws or other organizational or governing
         documents of such Person, and any law, treaty, rule or regulation or
         determination of an arbitrator or a court or other Governmental
         Authority, in each case applicable to or binding upon such Person or
         any of its property or to which such Person or any of its property is
         subject.

<PAGE>   25
                                                                              20

                  "RESTRICTED PAYMENT": means (i) any dividend or other
         distribution, direct or indirect, on account of any equity interests
         (including preferred capital stock) of the Borrower or any of its
         Subsidiaries now or hereafter outstanding, (ii) any redemption,
         retirement, sinking fund or similar payment, purchase or other
         acquisition for value, direct or indirect, of any equity interests
         (including preferred capital stock) of the Borrower or any of its
         Subsidiaries now or hereafter outstanding, (iii) any payment made to
         retire, or to obtain the surrender of, any outstanding warrants,
         options or other rights to acquire any equity interests (including
         preferred capital stock) of the Borrower or any of its Subsidiaries now
         or hereafter outstanding and (iv) any direct or indirect payment, loan,
         contribution or other transfer of funds or other property to any equity
         holder of the Borrower or any of its Subsidiaries.

                  "SECURITIES": any stock, shares, voting trust certificates,
         bonds, debentures, options, warrants, notes, or other evidences of
         indebtedness, secured or unsecured, convertible, subordinated or
         otherwise, or in general any instruments commonly known as "securities"
         or any certificates of interest, shares or participations in temporary
         or interim certificates for the purchase or acquisition of, or any
         right to subscribe to, purchase or acquire, any of the foregoing.

                  "SECURITY AGREEMENTS": the collective reference to the
         Borrower Security Agreement and the Subsidiaries Security Agreement.

                  "SECURITY DOCUMENTS": the collective reference to the Pledge
         Agreements, the Subsidiaries Guarantee, the Security Agreements, the
         Cash Collateral Agreement and all other security documents hereafter
         delivered to the Agent granting a Lien on any asset or assets of any
         Person to secure the obligations and liabilities of the Borrower
         hereunder and under any of the other Loan Documents or to secure any
         guarantee of any such obligations and liabilities.

                  "SENIOR SUBORDINATED NOTE INDENTURE": the Indenture dated as
         of September 28, 1995 pursuant to which the Borrower issued the Senior
         Subordinated Notes, as the same may be amended, supplemented or
         otherwise modified from time to time.

                  "SENIOR SUBORDINATED NOTES": the Senior Subordinated Notes due
         October 1, 2002 of the Borrower in the aggregate principal amount of
         $230,000,000.

                  "SOLVENT": with respect to any Person, that as of the date of
         determination, both (A) (i) the then fair saleable value of the
         property of such Person is (y) greater than the total amount of
         liabilities (including Contingent Obligations net of the estimated
         value of any subrogation or contribution rights relating thereto) of
         such Person and (z) greater than the amount that will be required to
         pay the probable liabilities of such Person's then existing debts as
         they become absolute and matured considering all financing
         alternatives, sharing and allocation arrangements and potential asset
         sales reasonably available to such Person; (ii) such Person's capital
         is not unreasonably small in relation to its business or any
         contemplated or undertaken transaction; and (iii) such Person does not
         intend to incur, or

<PAGE>   26
                                                                              21

         believe or reasonably should believe that it will incur, debts beyond
         its ability to pay such debts as they become due and (B) such Person is
         solvent within the meaning given that term and similar terms under
         applicable laws relating to fraudulent transfers.

                  "STOCKHOLDERS' AGREEMENT": the Amended and Restated
         Stockholders' Agreement of the Borrower dated as of December 22, 1994,
         as the same may be amended, supplemented or otherwise modified from
         time to time.

                  "STUDIO CONSTRUCTION EXPENDITURES": expenditures by the
         Borrower or its Subsidiaries for the construction of a corporate
         headquarters and studio facilities to be located at Old Okeechobee
         Road, West Palm Beach, Florida 33407 and related equipment (including
         software) in an aggregate amount not to exceed $20,000,000.

                  "SUBSIDIARIES GUARANTEE": the Second Amended and Restated
         Guarantee to be executed and delivered by each Subsidiary in favor of
         the Agent, substantially in the form of Exhibit D, as the same may be
         amended, supplemented or otherwise modified from time to time.

                  "SUBSIDIARIES PLEDGE AGREEMENT": the Second Amended and
         Restated Subsidiaries Pledge Agreement to be executed and delivered by
         each Subsidiary in favor of the Agent, substantially in the form of
         Exhibit E, as the same may be amended, supplemented or otherwise
         modified from time to time.

                  "SUBSIDIARIES SECURITY AGREEMENT": the Second Amended and
         Restated Subsidiaries Security Agreement to be executed and delivered
         by each Subsidiary in favor of the Agent, substantially in the form of
         Exhibit F, as the same may be amended, supplemented or otherwise
         modified from time to time.

                  "SUBSIDIARIES SECURITY DOCUMENTS": the collective reference to
         the Subsidiaries Pledge Agreement and the Subsidiaries Security
         Agreement.

                  "SUBSIDIARY": as to any Person, a corporation, partnership or
         other entity of which shares of stock or other ownership interests
         having ordinary voting power (other than stock or such other ownership
         interests having such power only by reason of the happening of a
         contingency) to elect a majority of the board of directors or other
         managers of such corporation, partnership or other entity are at the
         time owned, or the management of which is otherwise controlled,
         directly or indirectly through one or more intermediaries, or both, by
         such Person. Unless otherwise qualified, all references to a
         "Subsidiary" or to "Subsidiaries" in this Agreement shall refer to a
         Subsidiary or Subsidiaries of the Borrower. All references in this
         Agreement to a "Subsidiary" or "Subsidiaries" of the Borrower shall not
         include any Unrestricted Subsidiary of the Borrower.

                  "SUBSIDIARY GUARANTOR": any Subsidiary of the Borrower that is
         a party to the Subsidiaries Guarantee.

<PAGE>   27
                                                                              22

                  "TERMINATION DATE": June 30, 2002.

                  "TOP 25 TV STATION": a Broadcast Station located in an
         "Designated Market Area" ranked from number 1 to number 25; PROVIDED
         that, to the extent the Borrower or any of its Subsidiaries at any time
         owns or has an interest in more than one Broadcast Station located in
         the same "Designated Market Area", as to such Broadcast Stations, only
         the Broadcast Station with the greater or greatest fair market value
         shall be deemed to be a "Top 25 TV Station."

                  "TRANCHE": the collective reference to Eurodollar Loans the
         then current Interest Periods with respect to all of which begin on the
         same date and end on the same later date (whether or not such Loans
         shall originally have been made on the same day).

                  "TRANSFEREE": as defined in subsection 9.6(f).

                  "TYPE": as to any Loan, its nature as a Base Rate Loan or a
         Eurodollar Loan.

                  "UNRESTRICTED SUBSIDIARY": any corporation, partnership or
         other entity which, but for the operation of this definition, would be
         a Subsidiary of the Borrower (i) created, invested in or acquired by
         the Borrower or any Subsidiary of the Borrower after April 28, 1998,
         other than pursuant to a Preapproved Acquisition, (ii) designated by a
         resolution of the Board of Directors of the Borrower as an Unrestricted
         Subsidiary and such designation and the basis for such designation are
         provided in writing to the Agent, and (iii) into which the Borrower or
         any Subsidiary has made any Investment with the proceeds of any
         issuance or sale of any class of equity Securities of the Borrower as
         permitted by subsection 6.4(i); PROVIDED that if such Subsidiary is a
         partnership, such Subsidiary may be an Unrestricted Subsidiary only if
         neither the Borrower nor a Subsidiary of the Borrower is a general
         partner of such Subsidiary.

                  "WORKING DAY": shall mean any Business Day on which dealings
         in foreign currencies and exchange between banks may be carried on in
         London, England.

                  1.2 OTHER DEFINITIONAL PROVISIONS. (a) Unless otherwise
specified therein, all terms defined in this Agreement shall have the defined
meanings when used in any Notes or any certificate or other document made or
delivered pursuant hereto.

                  (b) As used herein and in any Notes, and any certificate or
other document made or delivered pursuant hereto, accounting terms relating to
the Borrower and its Subsidiaries not defined in subsection 1.1 and accounting
terms partly defined in subsection 1.1, to the extent not defined, shall have
the respective meanings given to them under GAAP.

                  (c) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
subsection, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

<PAGE>   28
                                                                              23

                  (d) The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

         SECTION 2. AMOUNT AND TERMS OF LOANS AND COMMITMENTS

                  2.1 LOANS AND COMMITMENTS. (a) Subject to the terms and
conditions hereof, each Lender severally agrees (i) to continue a term loan to
the Borrower in an aggregate principal amount set forth in Schedule 1.1A (the
"CONTINUED LOANS") and (ii) to make a term loan to the Borrower (together with
the Continued Loans, the "LOANS") on the Closing Date in a principal amount
equal to the amount of such Lender's Commitment.

                  2.2 PROCEDURE FOR BORROWING. (a) The Loans may from time to
time be (i) Eurodollar Loans or (ii) Base Rate Loans or (iii) a combination
thereof, as determined by the Borrower and notified to the Agent in accordance
with subsections 2.2(b) and 2.7, PROVIDED that no Loan shall be made as a
Eurodollar Loan after the day that is one month prior to the Termination Date.

                  (b) The Borrower may borrow on any Working Day, if all or any
part of such Loans are to be initially Eurodollar Loans, or on a Business Day,
if all of such Loans are to be initially Base Rate Loans, PROVIDED that the
Borrower shall give the Agent irrevocable notice (which notice must be received
by the Agent prior to 10:00 A.M., Los Angeles time, (a) three Business Days
prior to the Closing Date, if all or any part of the requested Loans are to be
initially Eurodollar Loans or (b) one Business Day prior to the requested
Borrowing Date, otherwise), specifying (i) whether the borrowing is to be
Eurodollar Loans, Base Rate Loans, or a combination thereof and (ii) if the
borrowing is to be entirely or partly of Eurodollar Loans, the respective
amounts of each such Type of Loan and the respective lengths of the initial
Interest Periods therefor. Upon receipt of any such notice from the Borrower,
the Agent shall promptly notify each Lender thereof. Each Lender will make the
amount of its pro rata share of the borrowing available to the Agent for the
account of the Borrower at the office of the Agent specified in subsection 9.2
prior to 11:00 A.M., New York City time, on the Closing Date in funds
immediately available to the Agent. Such borrowing will then be made available
to the Borrower by the Agent crediting the account of the Borrower on the books
of such office with the aggregate of the amounts made available to the Agent by
the Lenders and in like funds as received by the Agent.

                  2.3 INSTALLMENTS. The Loan of each Lender shall be paid in
seven consecutive quarterly installments, commencing on December 31, 2000, each
of which shall be in an amount equal to such Lender's Commitment Percentage
multiplied by the amount set forth below opposite such installment:

<PAGE>   29
                                                                              24

Installment Date                                    Principal Amount
----------------                                    ----------------
December 31, 2000                                      $18,300,000
March 31, 2001                                          12,962,500
June 30, 2001                                           12,962,500
September 30, 2001                                      12,962,500
December 31, 2001                                       12,962,500
March 31, 2002                                          25,925,000
June 30, 2002                                           25,925,000

                  2.4 REPAYMENT OF LOANS; EVIDENCE OF DEBT. (a) The Borrower
hereby unconditionally promises to pay to the Agent for the account of each
Lender the then unpaid principal amount of each Loan of such Lender in
accordance with subsection 2.3 (or such earlier date on which the Loans become
due and payable pursuant to Section 7). The Borrower hereby agrees to pay
interest on the unpaid principal amount of the Loans from time to time
outstanding from the date hereof until payment in full thereof at the rates per
annum, and on the dates, set forth in subsection 2.9.

                  (b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing indebtedness of the Borrower to such
Lender resulting from each Loan of such Lender from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time under this Agreement.

                  (c) The Agent shall maintain the Register pursuant to
subsection 9.6(d), and a subaccount therein for each Lender, in which shall be
recorded (i) the amount of each Loan made hereunder, the Type thereof and each
Interest Period applicable thereto, (ii) the amount of any principal or interest
due and payable or to become due and payable from the Borrower to each Lender
hereunder and (iii) both the amount of any sum received by the Agent hereunder
from the Borrower and each Lender's share thereof.

                  (d) The entries made in the Register and the accounts of each
Lender maintained pursuant to subsection 2.4(b) shall, to the extent permitted
by applicable law, be PRIMA FACIE evidence of the existence and amounts of the
obligations of the Borrower therein recorded; PROVIDED, HOWEVER, that the
failure of any Lender or the Agent to maintain the Register or any such account,
or any error therein, shall not in any manner affect the obligation of the
Borrower to repay (with applicable interest) the Loans made to the Borrower by
such Lender in accordance with the terms of this Agreement.

                  (e) The Borrower agrees that, upon the request to the Agent by
any Lender, the Borrower will execute and deliver to such Lender a promissory
note of the Borrower evidencing the Loans of such Lender, substantially in the
form of Exhibit A with appropriate insertions as to date and principal amount (a
"NOTE").

                  2.5 OPTIONAL PREPAYMENTS. The Borrower may, at any time and
from time to time, prepay the Loans, in whole or in part, without premium or
penalty, upon at least three Business Days' irrevocable notice to the Agent in
the case of Eurodollar Loans, and upon at least one

<PAGE>   30
                                                                              25

Business Days' irrevocable notice to the Agent in the case of Base Rate Loans,
specifying the date and amount of prepayment and whether the prepayment is of
Eurodollar Loans, Base Rate Loans or a combination thereof, and, if of a
combination thereof, the amount allocable to each. Upon receipt of any such
notice the Agent shall promptly notify each Lender thereof. If any such notice
is given, the amount specified in such notice shall be due and payable on the
date specified therein, together with any amounts payable pursuant to subsection
2.16. Partial prepayments shall be in an aggregate principal amount of $250,000
or a whole multiple of $50,000 in excess thereof. Prepayments of the Loans may
not be reborrowed.

                  2.6 MANDATORY PREPAYMENTS. (a) If the aggregate Net Cash
Proceeds received by the Borrower and/or any of its Subsidiaries subsequent to
the date hereof from the issuance of shares of any class of its equity
Securities (including preferred Capital Stock) shall exceed $300,000,000
(exclusive of any shares of any class of its equity Securities (including
preferred Capital Stock) issued to refinance or prepay Indebtedness permitted
hereunder outstanding on the date thereof in accordance with the terms hereof),
on the date of each such issuance which results in any such receipt of such
excess Net Cash Proceeds, an amount equal to the Equity Prepayment Percentage of
such excess Net Cash Proceeds from such issuance shall be applied on the date of
such issuance toward the prepayment of the Loans in accordance with the
provisions of paragraph (d) of this subsection 2.6.

                  (b) The Loans shall be prepaid in accordance with the
provisions of paragraph (d) of this subsection 2.6 by an amount equal to the
aggregate amount of Net Cash Proceeds received by the Borrower and its
Subsidiaries subsequent to the Closing Date from any Asset Sale (other than (1)
any Excluded Asset Sale, (2) any sale of WNGM-TV (Atlanta), WPXE-TV (Milwaukee),
WIPX-TV (Bridgeport), WYCL-FM (Pensacola), WHNZ - AM (Tampa), KVUT - TV (Little
Rock) or KAJW - TV (Phoenix) or of the promissory note currently owing to the
Borrower by the owner of WTWS-TV (Hartford) or WHRC - TV (Boston) if the
consideration received by the Borrower and its Subsidiaries of such sale is in
an amount not less than the applicable amount with respect thereto set forth on
Part A of Schedule 2.6(b), (3) any sale of a Broadcast Station set forth on Part
B of Schedule 2.6(b) under "Construction Permit Stations" if the consideration
received by the Borrower and its Subsidiaries of such sale is in an amount not
less than the applicable amount with respect thereto set forth on Part B of
Schedule 2.6(b); PROVIDED that the Net Cash Proceeds thereof are invested by the
Borrower or a Subsidiary on or prior to the 181st day following the date of such
Asset Sale in a Core Business, (4) any sale of any Broadcast Station listed on
Part C of Schedule 2.6(b) under "Other Stations" if the consideration received
by the Borrower and its Subsidiaries of such sale is in an amount not less than
the applicable amount with respect thereto set forth on Part C of Schedule
2.6(b); PROVIDED that the Net Cash Proceeds thereof are invested by the Borrower
or a Subsidiary on or prior to the 181st day following the date of such Asset
Sale in a Core Business, (5) any sale of any Broadcast Station set forth in Part
D of Schedule 2.6(b) under "Duplicative Top 25 Stations", (6) the sale of its
interest in the American Hockey League Franchise to operate a hockey team in
West Palm Beach, Florida.

                  (c) The Loans shall be prepaid in accordance with the
provisions of paragraph (d) of this subsection 2.6 by an amount equal to the Net
Cash Proceeds received by the Borrower and its Subsidiaries from any Recovery
Event.

<PAGE>   31
                                                                              26

                  (d) Prepayments of the Loans pursuant to this subsection 2.6
shall be applied to Loans pro rata to the remaining installments thereof. Each
prepayment of the Loans under this subsection 2.6 shall be accompanied by
accrued interest to the date of such prepayment on the amount prepaid and any
amounts due pursuant to subsection 2.16. Amounts prepaid may not be reborrowed.

                  2.7 CONVERSION AND CONTINUATION OPTIONS. (a) The Borrower may
elect from time to time to convert Eurodollar Loans to Base Rate Loans, by
giving the Agent at least two Business Days' prior irrevocable notice of such
election. The Borrower may elect from time to time to convert Base Rate Loans to
Eurodollar Loans by giving the Agent at least three Working Days' prior
irrevocable notice of such election. Any such notice of conversion to Eurodollar
Loans shall specify the length of the initial Interest Period or Interest
Periods therefor. Upon receipt of any such notice the Agent shall promptly
notify each Lender thereof. All or any part of outstanding Eurodollar Loans and
Base Rate Loans may be converted as provided herein, PROVIDED that (i) no Loan
may be converted into a Eurodollar Loan when any Event of Default has occurred
and is continuing and the Agent has or the Required Lenders have determined that
such a conversion is not appropriate and (ii) no Loan may be converted into a
Eurodollar Loan after the date that is one month prior to the Termination Date.

                  (b) Any Eurodollar Loans may be continued as such upon the
expiration of the then current Interest Period with respect thereto by the
Borrower giving notice to the Agent, in accordance with the applicable
provisions of the term "Interest Period" set forth in subsection 1.1, of the
length of the next Interest Period to be applicable to such Loans, PROVIDED that
no Eurodollar Loan may be continued as such (i) when any Event of Default has
occurred and is continuing and the Agent has or the Required Lenders have
determined that such a continuation is not appropriate or (ii) after the date
that is one month prior to the Termination Date and PROVIDED, FURTHER, that if
the Borrower shall fail to give such notice or if such continuation is not
permitted such Loans shall be automatically converted to Base Rate Loans on the
last day of such then expiring Interest Period.

                  2.8 MINIMUM AMOUNTS AND MAXIMUM NUMBER OF TRANCHES. All
conversions and continuations of Loans hereunder and all selections of Interest
Periods hereunder shall be in such amounts and be made pursuant to such
elections so that, after giving effect thereto, the aggregate principal amount
of the Loans comprising each Eurodollar Tranche shall be equal to $3,000,000 or
a whole multiple of $1,000,000 in excess thereof. In no event shall there be
more than 8 Eurodollar Tranches outstanding at any time.

                  2.9 INTEREST RATES AND PAYMENT DATES. (a) Each Eurodollar Loan
shall bear interest for each day during each Interest Period with respect
thereto at a rate per annum equal to the Eurodollar Rate determined with respect
to such Loan for such day plus the Applicable Margin.

                  (b) Each Base Rate Loan shall bear interest at a rate per
annum equal to the Base Rate plus the Applicable Margin.

<PAGE>   32
                                                                              27

                  (c) If all or a portion of (i) any principal of any Loan, (ii)
any interest payable thereon, or (iii) any other amount payable hereunder shall
not be paid when due (whether at the stated maturity, by acceleration or
otherwise), the principal of such overdue Loans and any such overdue interest,
commitment fee or other amount shall bear interest at a rate per annum which is
(x) in the case of principal, the rate that would otherwise be applicable
thereto pursuant to the foregoing provisions of this subsection plus 2% or (y)
in the case of any such overdue interest, commitment fee or other amount, the
rate described in paragraph (b) of this subsection plus 2%, in each case from
the date of such non-payment until such overdue principal, interest, commitment
fee or other amount is paid in full (as well after as before judgment).

                  (d) Interest shall be payable in arrears on each Interest
Payment Date, PROVIDED that interest accruing pursuant to paragraph (c) of this
subsection shall be payable from time to time on demand.

                  2.10 COMPUTATION OF INTEREST AND FEES. (a) Interest on Base
Rate Loans and commitment fees shall be calculated on the basis of a 365- (or
366-, as the case may be) day year for the actual days elapsed. Interest on
Eurodollar Loans shall be calculated on the basis of a 360-day year for the
actual days elapsed. The Agent shall as soon as practicable notify the Borrower
and the Lenders of each determination of a Eurodollar Rate. Any change in the
interest rate on a Loan resulting from a change in the Base Rate or the
Eurocurrency Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective. The Agent shall as
soon as practicable notify the Borrower and the Lenders of the effective date
and the amount of each such change in interest rate.

                  (b) Each determination of an interest rate by the Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
the Borrower and the Lenders in the absence of manifest error. The Agent shall,
at the request of the Borrower, deliver to the Borrower a statement showing the
quotations used by the Agent in determining any interest rate pursuant to
subsection 2.9(a) or (b).

                  2.11 INABILITY TO DETERMINE INTEREST RATE. If prior to the
first day of any Interest Period:

                  (a) the Agent shall have determined (which determination shall
         be conclusive and binding upon the Borrower) that, by reason of
         circumstances affecting the relevant market, adequate and reasonable
         means do not exist for ascertaining the Eurodollar Rate for such
         Interest Period, or

                  (b) the Agent shall have received notice from the Required
         Lenders that the Eurodollar Rate determined or to be determined for
         such Interest Period will not adequately and fairly reflect the cost to
         such Lenders (as conclusively certified by such Lenders) of making or
         maintaining their affected Loans during such Interest Period,

<PAGE>   33
                                                                              28

the Agent shall give telecopy or telephonic notice thereof to the Borrower and
the Lenders as soon as practicable thereafter. If such notice is given (x) any
Eurodollar Loans requested to be made on the first day of such Interest Period
shall be made as Base Rate Loans, (y) any Loans that were to have been converted
on the first day of such Interest Period to Eurodollar Loans shall be continued
as Base Rate Loans and (z) any affected outstanding Eurodollar Loans shall be
converted, on the first day of such Interest Period, to Base Rate Loans. Until
such notice has been withdrawn by the Agent (which notice shall be withdrawn
upon the cessation of such circumstances), no further Eurodollar Loans shall be
made or continued as such, nor shall the Borrower have the right to convert
Loans to Eurodollar Loans.

                  2.12 PRO RATA TREATMENT AND PAYMENTS. (a) The borrowing by the
Borrower from the Lenders hereunder shall be made pro rata according to the
respective Commitment Percentages of the Lenders. Each payment (including each
prepayment) by the Borrower on account of principal of and interest on the Loans
shall be made pro rata according to the respective outstanding principal amounts
of the Loans then held by the Lenders. All payments (including prepayments) to
be made by the Borrower hereunder, whether on account of principal, interest,
fees or otherwise, shall be made without set off or counterclaim and shall be
made prior to 11:00 A.M. Los Angeles time, on the due date thereof to the Agent,
for the account of the Lenders, at the Agent's office specified in subsection
9.2, in Dollars and in immediately available funds. The Agent shall distribute
such payments to the Lenders promptly upon receipt in like funds as received. If
any payment hereunder becomes due and payable on a day other than a Business
Day, such payment shall be extended to the next succeeding Business Day, and,
with respect to payments of principal, interest thereon shall be payable at the
then applicable rate during such extension.

                  (b Unless the Agent shall have been notified in writing by any
Lender prior to the Closing Date that such Lender will not make the amount that
would constitute its Commitment Percentage of such borrowing available to the
Agent, the Agent may assume that such Lender is making such amount available to
the Agent, and the Agent may, in reliance upon such assumption, make available
to the Borrower a corresponding amount. If such amount is not made available to
the Agent by the required time on the Closing Date, such Lender shall pay to the
Agent, on demand, such amount with interest thereon at a rate equal to the daily
average Federal Funds Rate for the period until such Lender makes such amount
immediately available to the Agent. A certificate of the Agent submitted to any
Lender with respect to any amounts owing under this subsection shall be
conclusive in the absence of manifest error. If such Lender's Commitment
Percentage of such borrowing is not made available to the Agent by such Lender
within three Business Days of the Closing Date, the Agent shall also be entitled
to recover such amount with interest thereon, without duplication of any amounts
received by the Agent from such Lender, at the rate per annum applicable to Base
Rate Loans hereunder, on demand, from the Borrower.

                  2.13 ILLEGALITY. Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue

<PAGE>   34
                                                                              29

Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall
forthwith be cancelled and (b) such Lender's Loans then outstanding as
Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on
the respective last days of the then current Interest Periods with respect to
such Loans or within such earlier period as required by law. If any such
conversion of a Eurodollar Loan occurs on a day which is not the last day of the
then current Interest Period with respect thereto, other than as a result of the
gross negligence or willful act of such Lender, the Borrower shall pay to such
Lender such amounts, if any, as may be required pursuant to subsection 2.16.

                  2.14 REQUIREMENTS OF LAW. (a) If the adoption of or any change
in any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

                        (i) shall subject any Lender to any tax of any kind
         whatsoever with respect to this Agreement, any Note or any Eurodollar
         Loan made by it, or change the basis of taxation of payments to such
         Lender in respect thereof (except for Non-Excluded Taxes covered by
         subsection 2.15 and changes in the rate of tax on the overall net
         income of such Lender);

                       (ii) shall impose, modify or hold applicable any reserve,
         special deposit, compulsory loan or similar requirement against assets
         held by, deposits or other liabilities in or for the account of,
         advances, loans or other extensions of credit by, or any other
         acquisition of funds by, any office of such Lender which is not
         otherwise included in the determination of the Eurodollar Rate
         thereunder; or

                       (iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, such Lender shall notify
the Borrower of such increased cost or reduced amount receivable and describe in
reasonable detail the basis for such notification, and the Borrower shall
promptly pay such Lender such additional amount or amounts as will compensate
such Lender for such increased cost or reduced amount receivable.

                  (b If any Lender shall have determined that the adoption of or
any change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations hereunder to a level below that which such Lender
or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender's or such corporation's
policies with respect to capital adequacy) by an amount deemed by such Lender to
<PAGE>   35
                                                                              30

be material, then from time to time, the Borrower shall promptly pay to such
Lender such additional amount or amounts as will compensate such Lender for such
reduction.

                  (c If any Lender becomes entitled to claim any additional
amounts pursuant to this subsection, it shall promptly notify the Borrower (with
a copy to the Agent) of the event by reason of which it has become so entitled.
A certificate showing in reasonable detail the calculation of any additional
amounts payable pursuant to this subsection submitted by such Lender to the
Borrower (with a copy to the Agent) shall be conclusive in the absence of
manifest error. The agreements in this subsection shall survive the termination
of this Agreement and the payment of the Loans and all other amounts payable
hereunder.

                  (d In the event any Lender delivers a certificate requesting
compensation pursuant to this subsection 2.14, the Borrower may, at its sole
expense and effort, upon notice to such Lender and the Agent, require such
Lender to transfer and assign, without recourse (in accordance with and subject
to the restrictions contained in subsection 9.6), all of its interests, rights
and obligations under this Agreement to an assignee which shall assume such
assigned obligations (which assignee may be another Lender, if a Lender accepts
such assignment); PROVIDED, however, that (x) such assignment shall not conflict
with any law, rule or regulation or order of any court or other Governmental
Authority having jurisdiction, (y) the Borrower shall have received the prior
written consent to such assignment of the Agent, which consent shall not
unreasonably be withheld, and (z) the Borrower or such assignee shall have paid
to the affected Lender in immediately available funds an amount equal to the sum
of the principal of the outstanding Loans of such Lender plus all interest, fees
and other amounts accrued and unpaid for the account of such Lender hereunder
(including any amounts under this subsection 2.14); PROVIDED, FURTHER, that if
prior to any such transfer and assignment the circumstances or event that
resulted in such Lender's claim for compensation under this subsection 2.14
cease to cause such Lender to suffer increased costs or reductions in amounts
received or receivable or reduction in return on capital (including as a result
of any action taken by such Lender pursuant to subsection 2.17), or if, within
twenty days after the Borrower shall have notified such Lender of its election
to exercise its rights pursuant to this subsection, such Lender shall waive its
right to claim further compensation under this subsection 2.14 in respect of
such circumstances or event, then such Lender shall not thereafter be required
to make any such transfer and assignment hereunder.

                  2.15 TAXES. (a) All payments made by the Borrower under this
Agreement and any Notes shall be made free and clear of, and without deduction
or withholding for or on account of, any present or future income, stamp or
other taxes, levies, imposts, duties, charges, fees, deductions or withholdings,
now or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed
in lieu of net income taxes) imposed on the Agent or any Lender as a result of a
present or former connection between the Agent or such Lender and the
jurisdiction of the Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such
connection arising solely from the Agent or such Lender having executed,
delivered or performed its obligations or received a payment under, or enforced,
this Agreement or any Note). If any such non-excluded taxes, levies, imposts,
duties, charges, fees deductions or withholdings ("NON-EXCLUDED TAXES") are
required to be withheld from any amounts payable to the Agent or

<PAGE>   36
                                                                              31

any Lender hereunder or under any Note, the amounts so payable to the Agent or
such Lender shall be increased to the extent necessary to yield to the Agent or
such Lender (after payment of all Non-Excluded Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement, PROVIDED, HOWEVER, that the Borrower shall not be required to
increase any such amounts payable to any Lender that is not organized under the
laws of the United States of America or a state thereof if such Lender fails to
comply with the requirements of paragraph (b) of this subsection. Whenever any
Non-Excluded Taxes are payable by the Borrower, as promptly as possible
thereafter the Borrower shall send to the Agent for its own account or for the
account of such Lender, as the case may be, a certified copy of an original
official receipt received by the Borrower showing payment thereof. If the
Borrower fails to pay any Non-Excluded Taxes when due to the appropriate taxing
authority or fails to remit to the Agent the required receipts or other required
documentary evidence, the Borrower shall indemnify the Agent and the Lenders for
any incremental taxes, interest or penalties that may become payable by the
Agent or any Lender as a result of any such failure. The agreements in this
subsection shall survive the termination of this Agreement and the payment of
the Loans and all other amounts payable hereunder.

                  (b Each Lender that is not incorporated under the laws of the
United States of America or a state thereof shall:

                        (i) deliver to the Borrower and the Agent (A) two duly
         completed copies of United States Internal Revenue Service Form 1001 or
         4224, or successor applicable form, as the case may be, and (B) an
         Internal Revenue Service Form W-8 or W-9, or successor applicable form,
         as the case may be;

                       (ii) deliver to the Borrower and the Agent two further
         copies of any such form or certification on or before the date that any
         such form or certification expires or becomes obsolete and after the
         occurrence of any event requiring a change in the most recent form
         previously delivered by it to the Borrower; and

                       (iii) obtain such extensions of time for filing and
         complete such forms or certifications as may reasonably be requested
         by the Borrower or the Agent;

unless in any such case an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Borrower and the Agent.
Such Lender shall certify (i) in the case of a Form 1001 or 4224, that it is
entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes and (ii) in the case of a
Form W-8 or W-9, that it is entitled to an exemption from United States backup
withholding tax. Each Person that shall become a Lender or a Participant
pursuant to subsection 9.6 shall, upon the effectiveness of the related
transfer, be required to provide all of the forms and statements required
pursuant to this subsection, PROVIDED that in the case of a Participant such
Participant shall furnish all such

<PAGE>   37
                                                                              32

required forms and statements to the Lender from which the related participation
shall have been purchased.

                  2.16 INDEMNITY. The Borrower agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense which such Lender may
sustain or incur as a consequence of (a) default by the Borrower in making a
borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, (b) default by the Borrower in making any
prepayment after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (c) the making of a prepayment of Eurodollar
Loans on a day which is not the last day of an Interest Period with respect
thereto. Such indemnification may include an amount equal to the excess, if any,
of (i) the amount of interest which would have accrued on the amount so prepaid,
or not so borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of
such Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans PROVIDED
for herein (excluding, however, the Applicable Margin included therein, if any)
over (ii) the amount of interest (as reasonably determined by such Lender) which
would have accrued to such Lender on such amount by placing such amount on
deposit for a comparable period with leading banks in the interbank eurodollar
market. This covenant shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

                  2.17 CHANGE OF LENDING OFFICE. Each Lender agrees that if it
makes any demand for payment under subsection 2.14 or 2.15(a), or if any
adoption or change of the type described in subsection 2.13 shall occur with
respect to it, it will use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions and so long as such efforts would
not be disadvantageous to it, as determined in its sole discretion) to designate
a different lending office if the making of such a designation would reduce or
obviate the need for the Borrower to make payments under subsection 2.14 or
2.15(a), or would eliminate or reduce the effect of any adoption or change
described in subsection 2.13.

                  2.18 FURTHER ASSURANCES REGARDING SECURITY; ADDITIONAL
SECURITY. (a) The Borrower shall, and shall cause each of its Subsidiaries to,
from time to time, execute and deliver to the Agent on behalf of the Lenders,
such additional Security Documents, statements, documents, agreements and
reports as it may from time to time reasonably request to evidence, perfect or
otherwise implement or assure the security for repayment of the Obligations
provided for under the Security Documents. With respect to the Lenders'
insurance policies, upon the Agent's reasonable request, the Borrower shall
arrange for co-insurance and/or reinsurance, with companies and in amounts
satisfactory to the Agent. All reinsurance policies shall include direct access
agreements acceptable to the Agent.

                  (b Notwithstanding anything herein to the contrary, to the
extent this Agreement or any other Loan Document purports to require any Loan
Party to grant to the Agent, on behalf of Lenders, a security interest in the
FCC Licenses of any Loan Party now owned or hereafter

<PAGE>   38
                                                                              33

acquired, as the case may be, the Agent, on behalf of Lenders, shall only have a
security interest in such FCC Licenses at such times and to the extent that a
security interest in such licenses is permitted under applicable law.
Notwithstanding anything to the contrary set forth herein, the Agent, on behalf
of Lenders, agrees that to the extent prior FCC approval is required pursuant to
the Communications Act for (a) the operation and effectiveness of any grant,
right or remedy hereunder or under the Security Documents or (b) taking any
action that may be taken by the Agent hereunder or under the Security Documents,
such grant, right, remedy or actions will be subject to such prior FCC approval
having been obtained by or in favor of the Agent, on behalf of Lenders. The
Borrower agrees that, upon an Event of Default and at the Agent's request, the
Borrower will, and will cause its Subsidiaries to, immediately file, or cause to
be filed, such applications for approval and shall take all other and further
actions reasonably required by the Agent, on behalf of Lenders, to obtain such
FCC approvals or consents as are necessary to transfer ownership and control to
the Agent, on behalf of Lenders, or their successors, assigns or designees of
the FCC Licenses held by the Borrower, its License Subsidiaries or any of its
other Subsidiaries. To enforce the provisions of this subsection, the Agent is
empowered to request the appointment of a receiver from any court of competent
jurisdiction. Such receiver shall be instructed to seek from the FCC an
involuntary transfer of control of any such FCC License for the purpose of
seeking a bona fide purchaser to whom control will ultimately be transferred.
The Borrower hereby agrees to authorize, and to cause each of its Subsidiaries
to authorize, such an involuntary transfer of control upon the request of the
receiver so appointed, and, if the Borrower shall refuse to authorize or cause
any of its Subsidiaries to so authorize the transfer, its approval may be
required by the court. Upon the occurrence and continuance of an Event of
Default, and the request of the Agent, the Borrower shall further use its best
efforts to assist in obtaining approval of the FCC, if required, for any action
or transactions contemplated by this Agreement or the other Loan Documents,
including, without limitation, the preparation, execution and filing with the
FCC of the assignor's or transferor's portion of any application or applications
for consent to the assignment of any FCC License or transfer of control
necessary or appropriate under the FCC's rules and regulations for approval of
the transfer or assignment of any portion of the Collateral, together with any
FCC License or other authorization.

                  (c The Borrower acknowledges that the assignment or transfer
of such FCC Licenses is integral to the Lenders' realization of the value of the
Collateral, that there is no adequate remedy at law for failure by the Borrower
to comply with the provisions of this subsection and that such failure would not
be adequately compensable in damages, and therefore agrees that the agreements
contained in this subsection may be specifically enforced.

                  (d Notwithstanding anything to the contrary contained in this
Agreement or any other Loan Document, neither the Agent nor any Lender shall,
without first obtaining the approval of the FCC, take any action pursuant to
this Agreement or any other Loan Document which would constitute or result in
any assignment of an FCC License or any change of control of the Borrower or any
of its Subsidiaries if such assignment or change in control would require, under
then existing law (including the written rules and regulations promulgated by
the FCC), the prior approval of the FCC.

<PAGE>   39
                                                                              34

                  (e At any time or from time to time upon the reasonable
request of the Agent, the Borrower shall, and shall cause each of its
Subsidiaries to, execute and deliver such further documents (including without
limitation such financing statements, continuation statements or amendments
thereto and such other documents and certificates as the Agent may reasonably
request to perfect and preserve the security interests granted or purported to
be granted under any of the Security Documents) and do such other acts and
things as the Agent may reasonably request to effect fully the purposes of this
Agreement and the other Loan Documents and to provide for payment of the
Obligations in accordance with the terms of this Agreement and the other Loan
Documents. Without limiting any of the foregoing, in the event a Person becomes
a Subsidiary of the Borrower after the Closing Date, the Borrower shall cause
such Subsidiary to execute and deliver such guarantees, Security Documents and
such other agreements, pledges, assignments, documents and certificates
(including, without limitation, any amendments to the Loan Documents) as the
Agent may reasonably request and do such other acts and things as the Agent may
reasonably request to have such Subsidiary guaranty the Obligations, grant,
subject to the limitation set forth in subsection 2.18(b), to the Agent on
behalf of Lenders, a duly perfected first priority Lien (subject to Liens
permitted hereunder) on all real, personal and mixed property (in each case, if
so requested by the Agent) of such Subsidiary, and effect fully the purposes of
this Agreement and the other Loan Documents and to provide for payment of the
Obligations in accordance with the terms of this Agreement and the other Loan
Documents. Without limiting the generality of the foregoing, in the event the
Borrower forms or otherwise acquires a Subsidiary after the Closing Date, the
Borrower shall (i) execute and deliver to the Agent a pledge agreement
substantially in the form attached hereto as Exhibit B and (ii) cause such
Subsidiary to execute and deliver a guarantee substantially in the form attached
hereto as Exhibit E, a pledge agreement substantially in the form attached
hereto as Exhibit E and a security agreement in the form of Exhibit F.

                    SECTION 3. REPRESENTATIONS AND WARRANTIES

                  To induce the Agent and the Lenders to enter into this
Agreement and to make the Loans, the Borrower hereby represents and warrants to
the Agent and each Lender that:

                  3.1  ORGANIZATION, POWERS, GOOD STANDING AND BUSINESS

                  (a ORGANIZATION AND POWERS. Each Loan Party is a corporation,
limited liability company or limited partnership, as the case may be, duly
formed and validly existing under the laws of the jurisdiction of its
organization. Each Loan Party has all requisite corporate or partnership, as the
case may be, power and authority to own and operate its properties, to carry on
its business as now conducted and proposed to be conducted, and each Loan Party
has all requisite corporate or partnership, as the case may be, power and
authority to enter into the Related Documents and the Loan Documents, to carry
out the transactions contemplated thereby and to issue the Notes, in each case
to the extent it is a party thereto.

                  (b GOOD STANDING. Each Loan Party is in good standing in every
jurisdiction where its assets are located and wherever necessary to carry out
its present business and

<PAGE>   40
                                                                              35

operations, except where the failure to be so qualified has not had and could
not reasonably be expected to have a Material Adverse Effect.

                  (c CONDUCT OF BUSINESS. The Loan Parties are engaged only in
the businesses permitted to be engaged in under subsection 6.13 and are
conducting their businesses in accordance with the provisions of subsection
6.13. Each Loan Party holds all licenses, permits, franchises, leases,
certificates of authority, or any waivers of the foregoing that are necessary to
permit each of them to conduct their respective businesses as now conducted and
to hold and operate their respective properties, except where the failure to
have such licenses, permits, franchises, leases and certificates of authority,
or waivers of any of the foregoing, could not reasonably be expected to have a
Material Adverse Effect. All such licenses, permits, franchises, leases,
certificates of authority and waivers are valid and in full force and effect,
except where the failure to be in full force and effect of such licenses,
permits, franchises, leases, certificates of authority and waivers could not
reasonably be expected to have a Material Adverse Effect.

                  (d OWNERSHIP AND SUBSIDIARIES. Except as set forth in Schedule
3.1(d), all of the issued and outstanding Capital Stock of each of the other
Loan Parties is held directly or indirectly by the Borrower. The ownership of
each of the Loan Parties and each of the Subsidiaries of each of the Loan
Parties is specified correctly and completely on Schedule 3.1(d) annexed hereto.
None of the Capital Stock of the Persons identified on Schedule 3.1(d) annexed
hereto is Margin Stock, except as specified on such Schedule. Each of the
Subsidiaries of the Loan Parties identified on Schedule 3.1(d) annexed hereto is
validly existing and in good standing under the laws of its respective
jurisdiction of incorporation or organization, as the case may be, and has full
corporate or partnership, as the case may be, power and authority to own its
assets and properties and to operate its business as presently owned and
conducted except where failure to be in good standing or a lack of corporate or
partnership, as the case may be, power and authority, has not had and could not
reasonably be expected to have a Material Adverse Effect.

                  (e FCC MATTERS.

                        (i) Schedule 3.1(e) correctly sets forth all of the FCC
         Licenses (other than auxiliary service licenses and receive only earth
         stations) owned or held by any Subsidiary of the Borrower or their
         respective Affiliates as of the Closing Date or, upon consummation of
         any Permitted Purchase, to be held by each Loan Party and correctly
         sets forth the expiration date, if any, of each such FCC License. Each
         FCC License was duly and validly issued by the FCC pursuant to
         procedures which comply with all requirements of applicable law, and
         neither the Borrower nor any other Loan Party has any knowledge of the
         occurrence of any event or the existence of any circumstance which, in
         the reasonable judgment of the Borrower or any other Loan Party, is
         likely to lead to the revocation or suspension of any FCC License. The
         Loan Parties have the right to use all FCC Licenses required in the
         ordinary course of business for the operation of the Broadcast
         Stations. Each such FCC License is in full force and effect, and each
         holder thereof is in substantial compliance therewith with no known
         conflict with the valid rights of others which could reasonably be
         expected to have a Material Adverse Effect. No event has occurred which
         permits, or after notice or lapse of time or both would permit,

<PAGE>   41
                                                                              36

         the revocation, termination, modification or restriction of any such
         FCC License or other right which could reasonably be expected to have a
         Material Adverse Effect. Except as permitted by subsection 5.10, the
         Borrower does not directly own or hold any FCC License.

                       (ii) The Loan Parties have duly filed in a timely manner
         all material filings which are required to be filed by the Loan Parties
         under the Communications Act and are in all material respects in
         substantial compliance with the Communications Act, including, without
         limitation, the rules and regulations of the FCC relating to the
         broadcast of television signals or the operation of the Broadcast
         Stations.

                      (iii) None of the Facilities (including without
         limitation, the transmitter and tower sites owned or used by the
         Borrower or any of its Subsidiaries) violate in any material respect
         the provisions of any applicable building codes, fire regulations,
         building restrictions or other governmental ordinances, orders or
         regulations, and (except as set forth in Schedule 3.1(f)) each such
         Facility is zoned so as to permit the commercial uses intended by the
         owner or occupier thereof and there are no outstanding variances or
         special use permits materially affecting any of the Facilities or the
         uses thereof.

                       (iv) The Ownership Report filed by the Borrower is true,
         correct and complete in all material respects, and there has been no
         change in control of the ownership of the Loan Parties or the FCC
         Licenses of the Loan Parties since the most recently filed Ownership
         Report for any of the Loan Parties other than as disclosed in writing
         to the Agent and the Lenders.

                  (f REAL PROPERTY. Schedule 3.1(f) accurately states all
material real property interests held by the Loan Parties.

                  3.2  AUTHORIZATION OF BORROWING, ETC.

                  (a AUTHORIZATION OF BORROWING. The execution, delivery and
performance of the Loan Documents and the Related Documents and the issuance,
delivery and payment of the Notes have been duly authorized by all necessary
corporate or partnership, as the case may be, action by each Loan Party a party
thereto except, in the case of any Related Document, the failure of which could
not reasonably be expected to result in a Material Adverse Effect.

                  (b NO CONFLICT. The execution, delivery and performance by
each Loan Party of the Loan Documents and the Related Documents, the issuance,
delivery and performance of the Notes and any other transaction contemplated by
the Loan Documents or the Related Documents do not and will not (i) violate any
provision of law applicable to any Loan Party, the Certificate of Incorporation,
Bylaws, Management Agreement (with respect to any limited liability company),
Partnership Agreement or other organizational documents of any Loan Party or any
order, judgment or decree of any court or other agency of government binding on
any Loan Party, (ii) conflict with, result in a breach of or constitute (with
due notice or lapse of time or both) a default under any material Contractual
Obligation of any Loan Party, (iii) result in or require the

<PAGE>   42
                                                                              37

creation or imposition of any material Lien upon any of the properties or assets
of any Loan Party (other than Liens hereunder in favor of the Agent on behalf of
the Lenders) or (iv) require any approval of stockholders or other equity
holders or any approval or consent of any Person under any Contractual
Obligation of any Loan Party, EXCEPT for such approvals or consents which (x)
have been obtained by the Borrower or its Subsidiaries or which relate to any
Permitted Purchase and will be obtained prior to the consummation thereof or (y)
are immaterial to the business, operations or financial position of the Borrower
and its Subsidiaries.

                  (c GOVERNMENTAL CONSENTS. The execution, delivery and
performance by each Loan Party of the Loan Documents and the Related Documents
to which it is a party, the issuance, delivery and performance of the Notes and
any other transactions contemplated by the Loan Documents or the Related
Documents, do not and will not require any registration with, consent or
approval of, or notice to, or other action to, with or by, any federal, state or
other governmental authority or regulatory body including, without limitation,
the FCC and any issuer of any permit or grant of authority relating to the
Broadcast Stations, EXCEPT for filings required in connection with the
perfection of the security interests granted pursuant to the Loan Documents, the
consent, if any, required from the FCC in connection with the consummation or
enforcement of the Loan Documents and the Related Documents in each case to the
extent such consummation or enforcement involves the assignment of any FCC
License or may be deemed a "change of control" under the Communications Act,
filings required with the FCC in connection with any License Subsidiary transfer
and the filing with the FCC, for notice purposes only, of this Agreement and any
of the other Loan Documents and the Related Documents required to be filed,
filings pursuant to the Hart-Scott-Rodino Act in connection with any Permitted
Purchase and, with respect to Related Documents, any registration with, consent
or approval of, or notice to, or other action to, the failure of which to make
or obtain could not reasonably be expected to have a Material Adverse effect.

                  (d BINDING OBLIGATION. Each of the Loan Documents and the
Related Documents has been duly executed and delivered by each Loan Party which
is a party thereto, and is the legally valid and binding obligation of such Loan
Party, enforceable against such Loan Party in accordance with their respective
terms, except as may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or limiting creditors' rights generally
and subject to the availability of equitable remedies.

                  3.3 FINANCIAL CONDITION. The Borrower has heretofore delivered
to the Lenders, at the Lenders' request, the Financial Statements. All such
statements were prepared in conformity with GAAP and, together with the
accompanying notes thereto, if any, fairly present in accordance with GAAP the
financial position (where applicable on a consolidated basis) of the entities
described in such financial statements as at the respective dates thereof and
the results of operations and changes in financial position (where applicable on
a consolidated basis) of the entities described therein for each of the periods
then ended (subject to, in the case of unaudited financial statements, normal
year-end adjustments). The Borrower has no (and will not following the funding
of the Loans have) material Contingent Obligation, contingent liability or
liability for taxes, long-term lease or unusual forward or long-term commitment
that is not (or will not be,

<PAGE>   43
                                                                              38

upon the delivery thereof) reflected in the foregoing financial statements or
the notes thereto or in the annual financial statements required to be delivered
pursuant to subsection 5.1(b)(iii).

                  3.4 NO MATERIAL ADVERSE CHANGE; NO RESTRICTED PAYMENTS. Since
December 31, 1997, no event or change has occurred that has caused or evidences,
either individually or in the aggregate, a Material Adverse Effect. Since
December 31, 1997, the Borrower has not directly or indirectly declared,
ordered, paid or made or set apart any sum or property for any Restricted
Payment or agreed so to do, except as permitted by subsection 6.6.

                  3.5 TITLE TO PROPERTIES; LIENS. Each Loan Party holds (i)
good, marketable and insurable fee simple title, subject to Liens permitted by
subsection 6.3, to all its owned real property, (ii) good, sufficient, insurable
(in the case of all material leased real property) and valid leasehold title,
subject to Liens permitted by subsection 6.3, to its respective leased real
property and (iii) good, sufficient and legal title, subject to Liens permitted
by subsection 6.3, to all of its material properties and assets (other than as
described in clauses (i) and (ii) of this sentence) reflected in the balance
sheet included with the Financial Statements or in the most recent financial
statements delivered pursuant to subsection 5.1(b) of this Agreement, except for
assets acquired or disposed of since the date of such financial statements.
Except as permitted by subsection 6.3, all such properties and assets are free
and clear of Liens.

                  3.6 LITIGATION; ADVERSE FACTS. There is no action, suit,
proceeding, governmental arbitration or governmental investigation (whether or
not purportedly on behalf of any Loan Party) at law or in equity or before or by
any federal, state, municipal or other governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, including,
without limitation, the FCC, pending or, to the knowledge of the Borrower,
threatened against or affecting any Loan Party or any property of any Loan Party
(but, in any event, excluding suits or proceedings affecting the broadcasting
industry or television industry generally) that has had, or could reasonably be
expected to result in any Material Adverse Effect. Neither the Borrower nor any
of its Subsidiaries has received any notice of termination of any material
contract, lease or other agreement, or suffered any material damage, destruction
or loss (whether or not covered by insurance) or had any employee strike,
work-stoppage, slow-down or lock-out or any substantial threat directed to it of
any imminent strike, work-stoppage, slow-down or lock-out, any of which remain
pending and are material to the conduct of the Borrower or its Subsidiaries'
business as presently conducted that could reasonably be expected to result in a
Material Adverse Effect.

                  3.7 PAYMENT OF TAXES. Except to the extent permitted by
subsection 5.3, all tax returns and reports of the Borrower and its Subsidiaries
required to be filed by it or on its behalf have been timely filed, and all
taxes, assessments, fees and other governmental charges upon such Persons and
upon their respective properties, assets, income and franchises which are due
and payable have been paid when due and payable. The Borrower does not know of
any proposed tax assessment against any such Person which is not being actively
contested by such Person, in good faith and by appropriate proceedings; PROVIDED
that such reserves or other appropriate provisions, if any, as shall be required
in conformity with GAAP shall have been made or provided therefor.

<PAGE>   44
                                                                              39

                  3.8 PERFORMANCE OF AGREEMENTS. (a) No Loan Party is in default
in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in any of its Contractual Obligations, and no
condition exists that, with the giving of notice or the lapse of time or both,
would constitute such a default, except, in each case, where the consequences,
direct or indirect, of such default or defaults, if any, could not reasonably be
expected to have a Material Adverse Effect.

                  (b No Loan Party is a party or subject to any agreement or
instrument which has or could reasonably be expected to have, individually or
the aggregate, a Material Adverse Effect.

                  3.9 GOVERNMENTAL REGULATION. No Loan Party is subject to
regulation under the Public Utility Company Act of 1935, the Federal Power Act
or the Investment Company Act of 1940 or to any federal or state statute or
regulation limiting its ability to incur Indebtedness.

                  3.10 SECURITIES ACTIVITIES. Neither any Loan Party nor any of
their respective Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or
carrying any Margin Stock.

                  3.11 EMPLOYEE BENEFIT PLANS. (a) The Borrower and each ERISA
Affiliate is in substantial compliance with all provisions and requirements of
ERISA with respect to each Employee Benefit Plan, and have substantially
performed all their obligations under each Employee Benefit Plan. There are no
actions, suits or claims (other than routine claims for benefits) pending or
threatened against any Employee Benefit Plan or its assets, and, to the best
knowledge of the Borrower, no facts exist which could give rise to any such
actions, suits or claims.

                  (b Within the period of five years ending on the Closing Date,
no ERISA Event has occurred, and there is no unpaid liability of the Borrower or
any ERISA Affiliate that arose in connection with any ERISA Event that occurred
prior to that five-year period. As of the Closing Date, no ERISA Event is
reasonably expected to occur with respect to any Employee Benefit Plan.

                  (c Except to the extent required under Section 4980B of the
Code, no Employee Benefit Plan provides health or welfare benefits (through the
purchase of insurance or otherwise) for any retired or former employees of the
Borrower or any ERISA Affiliate.

                  (d As of the most recent valuation date for any Pension Plan,
the excess of the actuarial present value (determined on the basis of reasonable
assumptions employed by the independent actuary for such Pension Plan) of the
benefit liabilities (as defined in Section 4001(a)(16) of ERISA), whether or not
vested, over the fair market value of the assets of such Pension Plan,
individually or in the aggregate for all Pension Plans (excluding for purposes
of such computation any Pension Plans with respect to which there is no such
excess), does not exceed $500,000.

<PAGE>   45
                                                                              40

                  3.12 CERTAIN FEES. No broker's or finder's fee or commission
will be payable by the Borrower or any of its Subsidiaries (or to the best
knowledge of the Borrower, by any other Person), other than to CEA, Inc., with
respect to the making of the Loans, or any of the other transactions
contemplated hereby (except that with respect to any Permitted Purchase the
Borrower has or will inform the Lenders of any such fees or commissions), and
the Borrower hereby indemnifies the Lenders against and agrees that it will hold
the Lenders harmless from any claim, demand or liability for broker's or
finder's fees (other than any broker's or finder's fee of any broker or finder
retained by the Agent or the Lenders) alleged to have been incurred in
connection with any such offer, issuance and sale, or any of the other
transactions contemplated hereby or by the Related Documents and any expenses,
including legal fees, arising in connection with any such claim, demand or
liability.

                  3.13  ENVIRONMENTAL.

                        (i) The operations of the Borrower and its Subsidiaries
         (including, without limitation, all operations and conditions at or in
         the Facilities) comply, and for the period within any applicable
         statute of limitations have complied, in all material respects with all
         Environmental Laws;

                       (ii) The Borrower and each of its Subsidiaries have
         obtained all permits under Environmental Laws necessary to their
         respective operations, and all such permits are in good standing, and
         the Borrower and each of its Subsidiaries are in compliance with all
         material terms and conditions of such permits;

                      (iii) Neither the Borrower nor any of its Subsidiaries has
         received (a) any material notice or claim to the effect that it is or
         may be liable to any Person as a result of the Release or threatened
         Release of any Hazardous Materials or (b) any letter or request for
         information under Section 104 of the Comprehensive Environmental
         Response, Compensation, and Liability Act (42 U.S.C. ' 9604) or
         comparable state laws, and to the best of the Borrower's knowledge,
         none of the operations of the Borrower or any of its Subsidiaries is
         the subject of any federal or state investigation evaluating whether
         any further investigation or remedial action is needed to respond to a
         Release or threatened Release of any Hazardous Material at any Facility
         or at any other location;

                       (iv) None of the operations of the Borrower or any of its
         Subsidiaries is subject to any judicial, administrative, or arbitral
         proceeding alleging the violation of or liability under any
         Environmental Laws which if adversely determined could reasonably be
         expected to have a Material Adverse Effect;

                        (v) The Borrower and each of its Subsidiaries and all of
         their Facilities or operations are not subject to any outstanding
         written order or agreement with any governmental authority or private
         party relating to (a) any Environmental Laws or (b) any Environmental
         Claims that in each case could reasonably be expected to have a
         Material Adverse Effect;

<PAGE>   46
                                                                              41

                       (vi) To the best knowledge of each Loan Party, neither
         the Borrower nor any of its Subsidiaries has any contingent liability
         in connection with any Release of any Hazardous Materials by the
         Borrower or any Subsidiaries of the Borrower that could reasonably be
         expected to have a Material Adverse Effect;

                      (vii) Neither the Borrower nor any of its Subsidiaries or,
         to the best of the Borrower's knowledge, any predecessor of the
         Borrower or any Subsidiaries of the Borrower has filed any notice under
         any Environmental Law indicating past or present treatment or disposal
         of Hazardous Materials at any Facility, and none of the Borrower's or
         any of its Subsidiary's operations involves the generation,
         transportation, treatment, storage or disposal of hazardous waste, as
         defined under 40 C.F.R. Parts 260-270 or any state equivalent in
         material violation of any such law;

                     (viii) To the best knowledge of each Loan Party, no
         Hazardous Material exists on, under or about any Facility in a manner
         that could give rise to an Environmental Claim having a Material
         Adverse Effect, and neither the Borrower nor any Subsidiary of the
         Borrower has filed any notice or report of a Release of any Hazardous
         Materials that could reasonably be expected to give rise to an
         Environmental Claim having a Material Adverse Effect;

                       (ix) To the best knowledge of each Loan Party, neither
         the Borrower nor any Subsidiary of the Borrower (or any of their
         predecessors) has disposed of any Hazardous Materials in a manner that
         could reasonably be expected to give rise to an Environmental Claim
         having a Material Adverse Effect;

                        (x) No underground storage tanks or surface impoundments
         are on or at the Facilities, other than those that could not reasonably
         be expected to give rise to an Environmental Claim having a Material
         Adverse Effect;

                       (xi) No Lien in favor of any Person for (a) any material
         liability under Environmental Laws, or (b) damages arising from or
         costs incurred by such Person in response to a Release has been filed
         or has been attached to the Facilities; and

                      (xii) There is no radio frequency radiation,
         electromagnetic field or similar condition of or about any property
         owned, operated, or otherwise used by any Loan Party that could
         reasonably be expected to give rise to a Material Adverse Effect.

                  3.14 SOLVENCY. Each Loan Party is, and on and after the
consummation of the transactions contemplated hereby will be, Solvent.

                  3.15 RELATED DOCUMENTS. As of the Closing Date, the Related
Documents have been duly authorized, executed and delivered by each Loan Party
and their respective Subsidiaries, to the extent each is a party thereto, and
are in full force and effect and no material term or condition thereof has been
amended or modified in any respect that could reasonably be expected to have a
Material Adverse Effect, without the consent of the Agent and the Required

<PAGE>   47
                                                                              42

Lenders. The Borrower has delivered or offered to deliver to the Lenders
complete and correct copies of the Related Documents and of all exhibits and
schedules delivered to or by any Loan Party or their respective Subsidiaries in
connection with Related Documents.

                  3.16 INSURANCE. The Borrower and its Subsidiaries maintain,
with insurers identified in Schedule 3.16, insurance with respect to its
properties and business and the properties and business of its Subsidiaries,
against loss or damage of the kinds customarily insured against by entities of
established reputation engaged in the same or similar business of such types and
in such amounts as are customarily carried under similar circumstances by such
other entities. Schedule 3.16 is a complete and accurate description of all
policies of insurance that will be in effect as of the Closing Date for the
Borrower and its Subsidiaries.

                  3.17 INTELLECTUAL PROPERTY. (a) The Borrower and its
Subsidiaries own, or are licensed to use, the Intellectual Property and all such
Intellectual Property is, in all material respects, fully protected and duly and
properly registered, filed or issued in the appropriate office and jurisdictions
for such registrations, filing or issuances.

                  (b) Except as disclosed on Schedule 3.17(b), (i) no material
claim has been asserted by any Person with respect to the use of any such
Intellectual Property, or challenging or questioning the validity or
effectiveness of any such Intellectual Property; (ii) to the best of the
Borrower's knowledge, the use of such Intellectual Property by the Borrower or
any of its Subsidiaries does not infringe on the rights of any Person, subject
to such claims and infringements as do not, in the aggregate, give rise to any
liabilities on the part of the Borrower or any of its Subsidiaries that are
material to the Borrower and its Subsidiaries taken as a whole; and (iii) the
consummation of the transactions contemplated by this Agreement will not in any
material manner or to any material extent impair the ownership of (or the
license to use, as the case may be) any of such Intellectual Property by the
Borrower or any of its Subsidiaries.

                  3.18 DISCLOSURE. No representation or warranty of any Loan
Party contained in any Loan Document or Related Document or any other document,
certificate or written statement furnished to the Lenders by or on behalf of any
Loan Party for use in connection with the transactions contemplated by this
Agreement (including any Permitted Purchase) contains any untrue statement of a
material fact or omits to state a material fact (known to the Borrower in the
case of any document not furnished by it) necessary in order to make the
statements contained herein or therein not misleading in light of the
circumstances in which the same were made. The projections and pro forma
financial information contained in such materials are based upon good faith
estimates and assumptions believed by the Borrower to be reasonable at the time
made, it being recognized by the Lenders that such projections as to future
events are not to be viewed as facts and that actual results during the period
or periods covered by any such projections may differ from the projected
results. There is no fact known (or which should upon the reasonable exercise of
diligence be known) to the Borrower (other than matters of a general economic
nature or relating to the broadcasting industry or television industry
generally) that has had or could reasonably be expected to have a Material
Adverse Effect and that has not been disclosed herein or in such other
documents, certificates and statements furnished to the Lenders for use in
connection with the transactions contemplated hereby.

<PAGE>   48
                                                                              43

                  3.19 SECURITY DOCUMENTS. (a) Each of the Pledge Agreements is
effective to create in favor of the Agent, for the benefit of the Lenders, a
legal, valid and enforceable security interest in the Pledged Securities
described therein and proceeds thereof and, when the Pledged Notes described
therein and stock certificates representing the Pledged Stock described therein
are delivered to the Agent, each such Pledge Agreement shall constitute a fully
perfected first priority Lien on, and security interest in, all right, title and
interest of the relevant Loan Party in such Pledged Securities and the proceeds
thereof, as security for the Obligations (as defined in the relevant Pledge
Agreement), in each case prior and superior in right to any other Person.

                  (b) Each of the Security Agreements is effective to create in
favor of the Agent, for the benefit of the Lenders, a legal, valid and
enforceable security interest in the Collateral described therein and proceeds
thereof, and when financing statements in appropriate form are filed in the
offices specified on Schedule 3.19(b), each such Security Agreement shall
constitute a fully perfected Lien on, and security interest in, all right, title
and interest of the Loan Parties in such Collateral and the proceeds thereof, to
the extent permitted under the Communications Act, as security for the
Obligations (as defined in the relevant Security Agreement), in each case prior
and superior in right to any other Person, other than with respect to Liens
expressly permitted by subsection 6.3.

                   (c) The Cash Collateral Agreement is effective to create in
favor of the Agent, for the benefit of the Lenders, a legal, valid and
enforceable security interest in the Collateral described therein and proceeds
thereof, and the Cash Collateral Agreement shall constitute a fully perfected
first priority Lien on, and security interest in, all right, title and interest
of the Borrower in such Collateral and the proceeds thereof, as security for the
Obligations, in each case prior and superior in right to any other Person.

                  3.20 PURPOSES OF LOANS. The proceeds of the Loans shall be
used by the Borrower to refinance the indebtedness outstanding on the date
hereof under the Existing Credit Agreement and to pay costs and expenses in
connection with such refinancing.

                         SECTION 4. CONDITIONS PRECEDENT

                  The agreement of each Lender to make the initial Loan
requested to be made by it is subject to the satisfaction on or prior to May 8,
1998 of the following conditions precedent:

                  (a) LOAN DOCUMENTS. The Agent shall have received (i) this
         Agreement, executed and delivered by a duly authorized officer of the
         Borrower, with a counterpart for each Lender, (ii) each of the Pledge
         Agreements, each executed and delivered by a duly authorized officer of
         the parties thereto, with a counterpart or a conformed copy for each
         Lender, (iii) the Subsidiaries Guarantee, executed and delivered by a
         duly authorized officer of the parties thereto, with a counterpart or a
         conformed copy for each Lender, (iv) the Security Agreements, executed
         and delivered by a duly authorized officer of the parties thereto, with
         a counterpart or a conformed copy for each Lender, (v) the Cash
         Collateral Agreement, executed and delivered by a duly authorized
         officer of the

<PAGE>   49
                                                                              44

         Borrower, with a counterpart or conformed copy for each Lender and (vi)
         for the account of each relevant Lender which has made a request
         therefor to the Agent, Notes conforming to the requirements hereof and
         executed and delivered by a duly authorized officer of the Borrower.

                  (b) RELATED AGREEMENTS. The Agent shall have received, with a
         copy for each Lender, true and correct copies, certified as to
         authenticity by the Borrower, of the LMA Agreements, the Purchase
         Agreements, the Exchange Debenture Indenture and such other documents
         or instruments as may be reasonably requested by the Lenders,
         including, without limitation, a copy of any debt instrument, security
         agreement or other material contract to which the Borrower or any of
         its Subsidiaries may be a party.

                  (c) BORROWING CERTIFICATE. The Agent shall have received, with
         a counterpart for each Lender, a certificate of each Loan Party, dated
         the Closing Date, substantially in the form of Exhibit G, with
         appropriate insertions and attachments, satisfactory in form and
         substance to the Agent, executed by the President or any Vice President
         and the Secretary or any Assistant Secretary of the Borrower.

                  (d) CORPORATE PROCEEDINGS OF THE BORROWER. The Agent shall
         have received, with a counterpart for each Lender, a copy of the
         resolutions, in form and substance satisfactory to the Agent, of the
         Board of Directors of the Borrower authorizing (i) the execution,
         delivery and performance of this Agreement and the other Loan Documents
         to which it is a party, (ii) the borrowings contemplated hereunder and
         (iii) the granting by it of the Liens created pursuant to the Borrower
         Security Documents, certified by the Secretary or an Assistant
         Secretary of the Borrower as of the Closing Date, which certificate
         shall be in form and substance satisfactory to the Agent and its
         counsel and shall state that the resolutions thereby certified have not
         been amended, modified, revoked or rescinded.

                  (e) BORROWER INCUMBENCY CERTIFICATE. The Agent shall have
         received, with a counterpart for each Lender, a Certificate of the
         Borrower, dated the Closing Date, as to the incumbency and signature of
         the officers of the Borrower executing any Loan Document satisfactory
         in form and substance to the Agent, executed by the President or any
         Vice President and the Secretary or any Assistant Secretary of the
         Borrower.

                  (f) ORGANIZATIONAL PROCEEDINGS OF SUBSIDIARIES. The Agent
         shall have received, with a counterpart for each Lender, a copy of the
         resolutions, in form and substance satisfactory to the Agent, of the
         Board of Directors of each Subsidiary (and its general partner, if
         applicable) which is a party to a Loan Document authorizing (i) the
         execution, delivery and performance of the Loan Documents to which it
         is a party and (ii) the granting by it of the Liens created pursuant to
         the Subsidiaries Security Documents to which it is a party, certified
         by the Secretary or an Assistant Secretary of each such Subsidiary (and
         its general partner, if applicable) as of the Closing Date, which
         certificate shall be in form and substance satisfactory to the Agent
         and shall state that the resolutions thereby certified have not been
         amended, modified, revoked or rescinded.

<PAGE>   50
                                                                              45

                  (g) SUBSIDIARY INCUMBENCY CERTIFICATES. The Agent shall have
         received, with a counterpart for each Lender, a certificate of each
         Subsidiary of the Borrower which is a Loan Party, dated the Closing
         Date, as to the incumbency and signature of the officers of such
         Subsidiaries (and its general partner, if applicable) executing any
         Loan Document, satisfactory in form and substance to the Agent,
         executed by the President or any Vice President and the Secretary or
         any Assistant Secretary of each such Subsidiary (and its general
         partner, if applicable).

                  (h) ORGANIZATIONAL DOCUMENTS. The Agent shall have received,
         with a counterpart for each Lender, true and complete copies of the
         certificate of incorporation and by-laws or other organizational
         documents of each Loan Party, certified as of the Closing Date as
         complete and correct copies thereof by the Secretary or an Assistant
         Secretary of the such Loan Party (or, in lieu of such copies,
         certification that such documents have not been amended, supplemented
         or otherwise modified subsequent to the date of delivery thereof to the
         Agent in connection with the closing of the Existing Credit Agreement).

                  (i) INTEREST RESERVE. The Borrower shall have deposited at
         least $22,400,000 in the cash collateral account established pursuant
         to the Cash Collateral Agreement to pay interest on the Loans and
         otherwise in accordance with the Cash Collateral Agreement.

                  (j) FEES. All fees and expenses which the Borrower has agreed
         to pay in connection with the execution and delivery of this Agreement
         and all fees and expenses then accrued and unpaid under the Existing
         Credit Agreement shall have been paid in full to the Agent and Lenders
         on the date on which this Agreement shall become effective in
         accordance with subsection 9.8.

                  (k) LEGAL OPINIONS. The Agent shall have received, with a
         counterpart for each Lender, the following executed legal opinions:

                           (i) the executed legal opinion of Holland & Knight,
                  counsel to the Borrower and the other Loan Parties, in form
                  and substance satisfactory to the Agent and the Lenders;

                           (ii) the executed legal opinion of Dow Lohnes &
                  Albertson, special FCC counsel to the Borrower and the other
                  Loan Parties, in form and substance satisfactory to the Agent
                  and the Lenders; and

                           (iii) the executed legal opinion of Anthony L.
                  Morrison, General Counsel to the Borrower, in form and
                  substance satisfactory to the Agent and the Lenders.

         Each such legal opinion shall cover such other matters incident to the
         transactions contemplated by this Agreement as the Agent may reasonably
         require.

<PAGE>   51
                                                                              46

                  (l) PLEDGED STOCK; STOCK POWERS; PLEDGED NOTES. The Agent
         shall have received the certificates representing the shares pledged
         pursuant to each of the Pledge Agreements, together with an undated
         stock power for each such certificate executed in blank by a duly
         authorized officer of the pledgor thereof, and the notes pledged
         pursuant to each of the Pledge Agreements, each endorsed in blank by a
         duly authorized officer of the pledgor thereof.

                  (m) ACTIONS TO PERFECT LIENS. The Agent shall have received
         evidence in form and substance satisfactory to it that all filings,
         recordings, registrations and other actions, including, without
         limitation, the filing of duly executed financing statements on form
         UCC-1, necessary or, in the opinion of the Agent, desirable to perfect
         the Liens created by the Security Documents shall have been completed.

                  (n) LIEN SEARCHES. The Agent shall have received the results
         of a recent search by a Person satisfactory to the Agent, of the
         Uniform Commercial Code, judgement and tax lien filings which may have
         been filed with respect to personal property of the Borrower, and the
         results of such search shall be satisfactory to the Agent.

                  (o) INSURANCE. The Agent shall have received evidence in form
         and substance satisfactory to it that all of the requirements of
         subsection 5.4 shall have been satisfied.

                  (p) REPRESENTATIONS AND WARRANTIES. Each of the
         representations and warranties made by the Borrower and its
         Subsidiaries in or pursuant to the Loan Documents shall be true and
         correct in all material respects on and as of such date as if made on
         and as of such date except for any representation and warranty which is
         expressly made as of an earlier date, which representation and warranty
         shall have been true and correct in all material respects as of such
         earlier date.

                  (q) NO DEFAULT. No Default or Event of Default shall have
         occurred and be continuing on such date or after giving effect to the
         Loans requested to be made on such date.

                  (r) ADDITIONAL MATTERS. All corporate and other proceedings,
         and all documents, instruments and other legal matters in connection
         with the transactions contemplated by this Agreement and the other Loan
         Documents shall be reasonably satisfactory in form and substance to the
         Agent, and the Agent shall have received such other documents and legal
         opinions in respect of any aspect or consequence of the transactions
         contemplated hereby or thereby as it shall reasonably request.

<PAGE>   52
                                                                              47

                        SECTION 5. AFFIRMATIVE COVENANTS

                  The Borrower hereby agrees that, so long as any amount is
owing to any Lender or the Agent hereunder or under any other Loan Document, the
Borrower shall and (except in the case of delivery of financial information,
reports and notices) shall cause each of its Subsidiaries to:

                  5.1  FINANCIAL STATEMENTS AND SYSTEMS.

                  (a) ACCOUNTING SYSTEM: Maintain a system of accounting
established and administered in accordance with sound business practices to
permit preparation of financial statements in conformity with GAAP.

                  (b) FINANCIAL STATEMENTS AND OTHER REPORTS: Deliver to the
Lenders:

                      (i) MONTHLY FINANCIALS: as soon as practicable and in any
         event within 30 days after the end of each calendar month of the
         Borrower, copies of the monthly sales pacing reports and operating cash
         flow statements for each operating property for such month, and copies
         of the consolidated and consolidating income statement, operating cash
         flow statement and performance to budget analysis for the Borrower and
         its Subsidiaries for and as of the end of such month;

                     (ii) QUARTERLY FINANCIALS: as soon as practicable and in
         any event within 45 days after the end of each fiscal quarter of the
         Borrower, a consolidated balance sheet of the Borrower and its
         consolidated Subsidiaries as at the end of such period, and the related
         unaudited consolidated statements of income and of cash flows, as
         contained in the Form 10-Q for such fiscal quarter provided by the
         Borrower to the Securities and Exchange Commission (or any successor or
         analogous Governmental Authority), and if such Form 10-Q is no longer
         required to be so provided by the Borrower, then the Borrower shall
         provide the Lenders with comparable financial statements, certified by
         the chief financial officer of the Borrower that they fairly present
         the financial condition and results of operations of the Borrower and
         its Subsidiaries, as appropriate, as at the end of such periods and for
         such periods, subject to changes resulting from audit and normal
         year-end adjustments;

                    (iii) YEAR-END FINANCIALS: as soon as practicable and in any
         event within 90 days after the end of each fiscal year of the Borrower,
         the audited consolidated balance sheet of the Borrower and its
         consolidated Subsidiaries, as at the end of such year, and the related
         consolidated statements of income, shareholders' equity and cash flows
         of the Borrower and its Subsidiaries for such fiscal year, (a)
         accompanied by a report thereon of independent certified public
         accountants of recognized national standing selected by the Borrower
         and reasonably satisfactory to Agent and the Required Lenders, which
         report shall contain no qualifications with respect to the continuance
         of the Borrower and its consolidated Subsidiaries as going concerns and
         shall state that such financial statements present fairly the financial
         position of the Borrower and its consolidated Subsidiaries as at

<PAGE>   53
                                                                              48

         the dates indicated and the statements of income and cash flows for the
         periods indicated in conformity with GAAP applied on a basis consistent
         with prior years (except as otherwise stated therein) and that the
         examination by such accountants in connection with such financial
         statements has been made in accordance with generally accepted auditing
         standards without any limitations being imposed on the scope of such
         examination and (b) certified by the chief financial officer of the
         Borrower that they fairly present the financial condition and results
         of operations of the Borrower and its Subsidiaries, as at the dates and
         for the periods indicated, as appropriate;

                       (iv) OFFICERS' AND COMPLIANCE CERTIFICATES: together with
         each delivery of financial statements of the Borrower and its
         Subsidiaries pursuant to subdivisions (ii) and (iii) above, (a) an
         Officer's Certificate of the Borrower stating that the signers have
         reviewed the terms of this Agreement and the Notes and have made, or
         caused to be made under their supervision, a review in reasonable
         detail of the transactions and condition of the Borrower and its
         Subsidiaries during the accounting period covered by such financial
         statements and that such review has not disclosed the existence during
         or at the end of such accounting period, and that the signers do not
         have knowledge of the existence as at the date of such Officers'
         Certificate, of any condition or event which constitutes an Event of
         Default or Default, or, if any such condition or event existed or
         exists, specifying the nature and period of existence thereof and what
         action the Borrower has taken, is taking and proposes to take with
         respect thereto; and (b) a certificate (a "COMPLIANCE CERTIFICATE") in
         a form satisfactory to the Agent demonstrating in reasonable detail
         compliance during and at the end of the applicable accounting periods
         with the provisions of subsection 2.6 and Section 6;

                        (v) RECONCILIATION STATEMENT: if, as a result of any
         change in accounting principles and policies from those used in the
         preparation of the Financial Statements, the financial statements of
         the Borrower and its consolidated Subsidiaries delivered pursuant to
         subsections (ii), (iii) or (xii) of this subsection 5.1(b) will differ
         in any material respect from the financial statements that would have
         been delivered pursuant to such subsections had no such change in
         accounting principles and policies been made, then, together with the
         first delivery of financial statements pursuant to subsection (ii),
         (iii) or (xii) following such change, financial statements of the
         Borrower and its consolidated Subsidiaries prepared on a pro forma
         basis, for (y) the current year to the effective date of such change
         and (z) the one full fiscal year immediately preceding the fiscal year
         in which such change is made, as if such change had been in effect
         during such period;

                       (vi) ACCOUNTANTS' CERTIFICATION: together with each
         delivery of consolidated financial statements of the Borrower and its
         Subsidiaries pursuant to subdivision (iii) above, a written statement
         by the independent public accountants giving the report thereon (a)
         stating that their audit examination has included a review of the terms
         of this Agreement and the Notes as they relate to accounting matters,
         (b) stating whether, in connection with their audit examination, any
         condition or event that constitutes an Event of Default or Default has
         come to their attention and, if such a condition or event has come to
         their attention, specifying the nature and period of

<PAGE>   54
                                                                              49

         existence thereof; PROVIDED that such accountants shall not be liable
         by reason of any failure to obtain knowledge of any such Event of
         Default or Default with respect to accounting matters that would not be
         disclosed in the course of their audit examination and (c) stating
         that, based on their audit examinations nothing has come to their
         attention that causes them to believe that the information contained in
         the Compliance Certificate delivered therewith pursuant to clause (b)
         of subdivision (iv) above for the applicable fiscal year are not stated
         in accordance with the terms of this Agreement;

                      (vii) ACCOUNTANTS' REPORTS: promptly upon receipt thereof
         (unless restricted by applicable professional standards), copies of all
         significant reports submitted to the Borrower by independent public
         accountants in connection with each annual, interim or special audit of
         the financial statements of the Borrower made by such accountants,
         including, without limitation, the comment letter submitted by such
         accountants to management in connection with their annual audit;

                     (viii) REPORTS AND FILINGS: within five days after the same
         are sent, copies of all financial statements and reports which the
         Borrower sends to its stockholders, and within five days after the same
         are filed, copies of all financial statements and reports which the
         Borrower may make to, or file with, the Securities and Exchange
         Commission or any successor or analogous Governmental Authority;

                       (ix) EVENTS OF DEFAULT ETC.: promptly upon, but in any
         event no later than two Business Days after, any officer of the
         Borrower obtaining knowledge (a) of any condition or event that
         constitutes an Event of Default or Default, or becoming aware that any
         Lender or the Agent has given any notice or taken any other action with
         respect to a claimed Event of Default or Default under this Agreement,
         (b) that any Person has given any notice to the Borrower or any of its
         Subsidiaries or taken any other action with respect to a claimed
         default or event or condition of the type referred to in Section 7(b)
         and (e), (c) of any condition or event that would be required to be
         disclosed in a current report filed by the Borrower with the Securities
         and Exchange Commission on Form 8-K (Items 1, 2, 4 and 5 of such Form
         as in effect on the date hereof) or (d) of any condition or event which
         has had or could reasonably be expected to have a Material Adverse
         Effect (which, for such purposes, shall be determined with respect to
         the Borrower individually), an Officer's Certificate specifying the
         nature and period of existence of such condition or event, or
         specifying the notice given or action taken by such holder or Person
         and the nature of such claimed default, Event of Default, Default,
         event or condition, and what action the Borrower has taken, is taking
         and proposes to take with respect thereto;

                        (x) LITIGATION: promptly upon any officer of the
         Borrower obtaining knowledge of (a) the institution of any action,
         suit, proceeding, governmental investigation or arbitration against or
         affecting any Loan Party or any property of any Loan Party not
         previously disclosed by the Borrower or the other Loan Parties to the
         Lenders or (b) any material adverse development in any such action,
         suit, proceeding, governmental investigation or arbitration that, in
         any case:

<PAGE>   55
                                                                              50

                        (y) involves claims in excess of $5,000,000 in the
         aggregate; or

                        (z) would reasonably be expected to cause a Material
         Adverse Effect; the Borrower shall promptly give notice thereof to the
         Lenders and provide such other information as may be reasonably
         available to them to enable the Lenders and their counsel to evaluate
         such matters;

                  (xi) ERISA EVENTS: promptly upon becoming aware of the
         occurrence of or forthcoming occurrence of any ERISA Event in
         connection with any Employee Benefit Plan or any trust created
         thereunder, with a written notice specifying the nature thereof, what
         action the Borrower or ERISA Affiliate has taken, is taking or proposes
         to take with respect thereto and, when known, any action taken or
         threatened by the Internal Revenue Service, the Department of Labor or
         the PBGC with respect thereto;

                  (xii) ERISA NOTICES: with reasonable promptness, copies of (a)
         all notices received by the Borrower or any of its ERISA Affiliates
         from the PBGC relating to an ERISA Event, (b) each Schedule B
         (Actuarial Information) to the annual report (Form 5500 Series) filed
         by the Borrower or any of its ERISA Affiliates with the Internal
         Revenue Service with respect to each Pension Plan, if any, and (c) all
         notices received by the Borrower or any of its ERISA Affiliates from a
         Multiemployer Plan sponsor concerning an ERISA Event;

                  (xiii) FINANCIAL PLANS: as soon as practicable and in any
         event no later than the 30 days after the end of any fiscal year of the
         Borrower, a budget and financial forecast for the Borrower and its
         Subsidiaries including, (a) a forecasted operating cash flows statement
         of the Borrower and its Subsidiaries for the next succeeding fiscal
         year, (b) forecasted operating cash flows statement of the Borrower and
         its Subsidiaries for each fiscal quarter of the next succeeding fiscal
         year and (c) such other information and projections as any Lender may
         reasonably request, in each case, in a format satisfactory to the
         Agent; and

                  (xiv) OTHER INFORMATION: with reasonable promptness, such
         other information and data with respect to the Borrower or any of its
         Subsidiaries or Affiliates as from time to time may be reasonably
         requested by any Lender.

                  5.2 MAINTENANCE OF EXISTENCE, ETC.. Except as permitted by
subsection 6.7, preserve and keep in full force and effect its corporate or
partnership existence, as the case may be, and rights and franchises material to
its business.

                  5.3 PAYMENT OF TAXES AND CLAIMS; TAX CONSOLIDATION. Pay all
taxes, assessments and other governmental charges imposed upon it or any of its
properties or assets or in respect of any of its franchises, business, income or
property, non-payment of which would cause a Material Adverse Effect, before any
penalty accrues thereon, and all claims (including, without limitation, claims
for labor, services, materials and supplies) for sums that have become due and
payable and that by law have or may become a material Lien upon any of its
properties or assets, prior to the

<PAGE>   56
                                                                              51

time when any penalty or fine shall be incurred with respect thereto; PROVIDED
that no such tax, assessment, charge or claim need be paid if being contested in
good faith by appropriate proceedings promptly instituted and diligently
conducted and if such reserve or other appropriate provision, if any, as shall
be required in conformity with GAAP shall have been made therefor. Neither the
Borrower nor any of its Subsidiaries will file or consent to the filing of any
consolidated income tax return with any Person (other than the Borrower or its
Subsidiaries).

                  5.4 MAINTENANCE OF PROPERTIES; INSURANCE. Maintain in good
repair, working order and condition all material properties used or useful in
the business of the Borrower and its Subsidiaries (including, without
limitation, Intellectual Property) and from time to time will make or cause to
be made all appropriate (as reasonably determined by the Borrower) repairs,
renewals and replacements thereof. The Borrower will maintain or cause to be
maintained, with financially sound and reputable insurers, insurance with
respect to its properties and business and the properties and business of its
Subsidiaries (including without limitation, business interruption insurance and
insurance on plant, property and equipment) against loss or damage of the kinds
customarily carried or maintained under similar circumstances by entities of
established reputation engaged in similar businesses. On or before the end of
the second fiscal quarter of each fiscal year, the Borrower shall submit to the
Agent an Officers' Certificate updating the information contained in Schedule
3.16 as of such date. Each such policy of insurance (other than business
interruption insurance) shall name the Agent as the loss payee or as additional
insured, as the Agent may require, for the benefit of the Lenders thereunder and
provide for at least thirty (30) days prior written notice (or such other period
as is customary in the industry) to the Agent of any material modification or
any cancellation of such policies.

                  5.5 INSPECTION; LENDER MEETING. Subject to subsection 9.15,
permit any authorized representatives designated by the Agent to visit and
inspect any of the properties of the Borrower, any of its Subsidiaries or any
Broadcast Station, including its and their financial and accounting records, and
to make copies and take extracts therefrom, and to discuss its and their
affairs, finances and accounts with its and their officers and independent
public accountants, all upon reasonable notice and at such reasonable times
during normal business hours and as often as may be reasonably requested.
Without in any way limiting the foregoing, the Borrower will, upon the request
of the Required Lenders, participate in a meeting with the Agent and the Lenders
once during each fiscal year to be held at the Borrower's corporate offices at
such time as may be agreed to by the Borrower and the Required Lenders.

                  5.6 COMPLIANCE WITH LAWS, ETC. (a)(i) Comply with the
requirements of all applicable laws, rules, regulations and orders of any
Governmental Authority, including, without limitation, the Communications Act,
noncompliance with which could reasonably be expected to cause a Material
Adverse Effect and (ii) comply in all material respects at all times with all
provisions of all FCC Licenses, certifications and permits, franchises or other
permits and authorizations relating to the operation of the Broadcast Stations
and all other material agreements, licenses and leases to which it is a party or
of which it is a beneficiary and suffer no loss or forfeiture thereof or
thereunder except for any non-compliance or a loss or forfeiture which does not
have and could not reasonably be expected to have a Material Adverse Effect; and

<PAGE>   57
                                                                              52

                  (b) Not engage in any transaction or permit the occurrence of
any act or omission, and shall cause each ERISA Affiliate not to engage in any
transaction or to permit the occurrence of any act or omission, which would
constitute, or would give rise to, an ERISA Event which would cause a Material
Adverse Effect.

                  5.7 COMPLIANCE WITH RELATED DOCUMENTS. Comply at all times
with the covenants under the Related Documents except for any failure to comply
which could not reasonably be expected to result in a Material Adverse Effect or
otherwise materially adversely affect the interests of the Lenders under this
Agreement or any of the other Loan Documents. The Borrower and its Subsidiaries
shall deliver to the Agent copies of all reports, notices and other information
received or required to be delivered by the Borrower and its Subsidiaries with
respect to the Related Documents, if so requested by any Lender or if such
information relates to any matter or matters which, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

                  5.8 ENVIRONMENTAL DISCLOSURE AND INSPECTION. (a) Comply, and
undertake all reasonable efforts to ensure that all tenants under any lease or
occupancy agreement affecting any portion of the Facilities and all other
Persons on or occupying such property comply, in all materials respects with all
Environmental Laws, PROVIDED that upon learning of any material noncompliance
with Environmental Laws by the Borrower or any of its Subsidiaries, the Borrower
shall promptly undertake all reasonable efforts to remedy such non-compliance.

                  (b) Agree that the Agent is entitled (but has no obligation),
from time to time (upon the Agent's determination in its reasonable discretion
that any of the following is advisable), upon notice to the Borrower and as
often as may reasonably be requested, to retain, at the Borrower's expense, an
independent professional consultant to review any report relating to Hazardous
Materials prepared by or for the Borrower and to conduct its own investigation
of any Facility. The Borrower hereby grants to the Agent, its agents, employees,
consultants and contractors the right to enter into or on to the Facilities upon
reasonable notice and at such times during normal business hours and as often as
may reasonably be requested to perform such tests on such property as are
reasonably necessary to conduct such a review and/or investigation. The Borrower
may receive copies of any reports prepared by independent experts, but the
Lenders shall have no duty to disclose or discuss any information produced by
such reviews or investigations with the Borrower or any of its Subsidiaries.

                  (c) Promptly advise the Lenders in writing and in reasonable
detail of (i) any Release of any Hazardous Material (of which the Borrower is
aware) required to be reported to any federal, state or local governmental or
regulatory agency under any applicable Environmental Laws, (ii) any and all
written communications with respect to Environmental Claims or any Release of
Hazardous Material required to be reported to any federal, state or local
governmental or regulatory agency, (iii) any remedial action taken by the
Borrower or any other Person in response to (a) any Hazardous Material on, under
or about any Facility, the existence of which could reasonably be expected to
result in an Environmental Claim having a Material Adverse Effect or (b) any
Environmental Claim that could reasonably be expected to have a Material Adverse
Effect, (iv) the Borrower's discovery of any occurrence or condition on any real
property

<PAGE>   58
                                                                              53

adjoining or in the vicinity of any Facility that could cause such Facility or
any part thereof to be classified as a "border-zone property" or to be otherwise
subject to any restrictions on the ownership, occupancy, transferability or use
thereof under any Environmental Laws that could reasonably be expected to have a
Material Adverse Effect, and (v) any request for information from any
governmental agency that indicates such agency is investigating whether the
Borrower or any of its Subsidiaries may be potentially responsible for a Release
of Hazardous Materials.

                  (d) Promptly notify the Lenders of any proposed acquisition or
disposition of stock, assets, or property by any Loan Party, that could
reasonably be expected to expose the Borrower or any of its Subsidiaries to, or
result in, Environmental Claims that could have a Material Adverse Effect and of
any proposed action to be taken by the Borrower or any of its Subsidiaries to
commence or cease manufacturing, industrial or other operations that could
reasonably be expected to subject the Borrower or any of its Subsidiaries to
additional laws, rules or regulations, including, without limitation, laws,
rules and regulations requiring additional environmental permits or licenses.

                  (e) At their own expense, provide copies of such documents or
information as the Agent may reasonably request in relation to any matters
disclosed pursuant to this subsection.

                  5.9 HAZARDOUS MATERIALS; THE BORROWER'S REMEDIAL ACTION. Take
promptly any and all necessary remedial action required by all applicable
Environmental Laws and perform such remedial action in compliance with all
applicable Environmental Laws and orders and directives of all federal, state
and local governmental authorities except when and only to the extent that the
Borrower's or such Subsidiary's liability for the presence, storage, use,
disposal, transportation or discharge of any Hazardous Material is being
contested in good faith by the Borrower or such Subsidiary by appropriate
proceedings, and the pendency of such proceedings is not reasonably likely to
give rise to a Material Adverse Effect.

                  5.10 FCC LICENSES. (a) Use their best efforts to keep in full
force and effect all of the FCC Licenses of the Borrower, if any, and its
Subsidiaries. The Loan Parties shall provide a copy of any (or, in the event of
any notice based on knowledge of such Loan Party, a brief description of such
default and the basis of such knowledge) notice from the FCC of any violation
with respect to any FCC License received by it or any of its respective
Subsidiaries (or with respect to which any of such Loan Parties may have any
knowledge).

                  (b) The Borrower shall establish and maintain wholly-owned
License Subsidiaries for the purpose of holding the FCC Licenses related to the
Broadcast Stations owned by them on and after the Closing Date and shall cause
the License Subsidiaries not to own any material assets other than the FCC
Licenses or to have any material liabilities (other than pursuant to the
Subsidiary Guarantee or the guarantees with respect to the Senior Subordinated
Notes). At all times on and after the date hereof (or (i) in the case of those
FCC Licenses described in Schedule 5.10, as soon as practicable following the
date hereof and at all times thereafter or (ii) in the case of any FCC License
acquired subsequent to the date hereof with respect to which it is not
practicable to cause such FCC License to be acquired directly by a License
Subsidiary, as soon as practicable following the date of acquisition and at all
times thereafter), the Borrower shall, and

<PAGE>   59
                                                                              54

shall cause its Subsidiaries to, cause each new FCC License issued by the FCC to
be issued to, and held by, a License Subsidiary.

                  5.11 ADDITIONAL LOAN PARTIES. In the event that (i) any
Permitted Purchase is to be made by any Subsidiary or Affiliate of the Borrower
and such Subsidiary or Affiliate is not a Loan Party hereunder or under any of
the other Loan Documents immediately prior to the consummation of any such
transaction, or (ii) any Subsidiary of the Borrower is at any time not a Loan
Party hereunder (each such Subsidiary or Affiliate in any case referred to
herein as an "ADDITIONAL LOAN PARTY" and collectively as the "ADDITIONAL LOAN
PARTIES"), then, on or before the consummation of any such transaction or
addition as a Loan Party hereunder, such Additional Loan Party shall deliver
appropriate counterparts and assumptions of each Loan Document to which it is to
be a party and all such documents, opinions of counsel, certificate and
instruments as such Additional Loan Party would have been required to deliver
pursuant to subsection 4.1 had such Additional Loan Party been a Loan Party
hereunder on the Closing Date and such other documents, certificates,
instruments and assurances as are consistent with the provisions of subsection
2.18 and Section 4 in relation to such Additional Loan Party's proposed status
hereunder and under the other Loan Documents (including, without limitation,
taking into consideration whether the obligations of such Additional Loan Party
are to be of a limited recourse nature or otherwise), all as shall be reasonably
requested by the Agent at the time such Additional Loan Party shall become a
party under the Loan Documents. Upon satisfaction of the foregoing conditions,
such Additional Loan Party shall be a Loan Party for all purposes hereunder and
under the other Loan Documents.

                  5.12 CORPORATE SEPARATENESS; TAX SHARING AGREEMENT. (a) Cause
the management, business and affairs of each Unrestricted Subsidiary to be
conducted in such a manner so that such Unrestricted Subsidiary will be
perceived as a legal entity separate and distinct from the Borrower and its
Subsidiaries.

                  (b) Enter in a tax sharing agreement on terms and conditions
customary and reasonably satisfactory to the Agent if the Agent shall reasonably
determine that such an agreement is necessary to provide for the fair and
reasonable allocation of federal, state and local tax liabilities and benefits
between and among (i) the Borrower and its Subsidiaries and (ii) any
Unrestricted Subsidiaries.

                          SECTION 6. NEGATIVE COVENANTS

                  The Borrower hereby agrees that, so long as any amount is
owing to any Lender or the Agent hereunder or under any other Loan Document, the
Borrower shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly:

                  6.1 FINANCIAL CONDITION COVENANTS. (a) LEVERAGE RATIO. Permit
the Leverage Ratio as of the last day of each calendar quarter occurring during
any of the periods set forth below to be greater than the correlative ratio
indicated:

<PAGE>   60
                                                                              55

             Period                                            Leverage Ratio
             ------                                            --------------

March 31, 2000 - June 30, 2000                                    5.00:1.00

July 1, 2000 - December 31, 2000                                  4.50:1.00

January 1, 2001 - June 30, 2001                                   4.25:1.00

July 1, 2001 - December 31, 2001                                  3.75:1.00

January 1, 2002 - thereafter                                      3.50:1.00

                  (b) CASH INTEREST COVERAGE. Permit the ratio of (y)
Consolidated Operating Cash Flow to (z) Consolidated Cash Interest Expense of
the Borrower and its Subsidiaries for the four quarter period ending on the last
day of each calendar quarter occurring during the periods specified below to be
less than the correlative ratio indicated:

                                                             Cash Interest
             Period                                          Coverage Ratio
             ------                                          --------------

March 31, 2000 - June 30, 2000                                  1.75:1.00

July 1, 2000 - December 31, 2000                                2.25:1.00

January 1, 2001 - thereafter                                    2.50:1.00

                  (c) FIXED CHARGE COVERAGE. Permit the ratio of (y)
Consolidated Operating Cash Flow to (z) Consolidated Fixed Charges of the
Borrower and its Subsidiaries for the twelve consecutive month period ending as
of the last day of any calendar quarter ending on or after March 31, 2000 to be
less than 1.10:1.00.

                  (d) CASH FLOW FROM LMA AGREEMENTS. On or after March 31, 2000,
permit more than 25% of Consolidated Operating Cash Flow to be earned or
generated pursuant to LMA Agreements for any fiscal period.

                  6.2 LIMITATION ON INDEBTEDNESS. Create, incur, assume,
guaranty, or otherwise become or remain directly or indirectly liable with
respect to, any Indebtedness, except:

                  (a)  Indebtedness under the Loan Documents;

                  (b) Contingent Obligations permitted by subsection 6.5 (other
         than subsection 6.5(e)) and, upon any obligations actually arising
         pursuant thereto, the Indebtedness corresponding to the Contingent
         Obligations so extinguished;

<PAGE>   61
                                                                              56

                  (c) Indebtedness in respect of Capital Leases and/or purchase
         money Indebtedness or any combination thereof in an aggregate amount at
         any time outstanding not in excess of 5% of Consolidated Total Assets
         as of the date incurred, so long as at the time any such Capital Lease
         is entered into or such Indebtedness is incurred no Default or Event of
         Default shall have occurred and be continuing or would result
         therefrom;

                  (d) (i) the Senior Subordinated Notes, the Exchangeable
         Preferred Stock, any Exchangeable Preferred Stock issued in accordance
         with subsection 6.2(g)(ii), any Exchange Debentures issued in
         accordance with subsections 6.2(g)(i) or (i) and (ii) Indebtedness
         existing as of the Closing Date as set forth in Schedule 6.2(d), and
         (iii) renewals, refinancings, extensions and modifications of any
         Indebtedness described in clauses (i) and (ii) of this paragraph (d):
         (A) the terms of which have been provided to the Lenders at least seven
         Business Days before the date of such renewal, refinancing, extension
         or modification, (B) which do not increase the rate or shorten the date
         for payment of interest thereon or shorten the maturity (or weighted
         average life) or increase the principal amount thereof (except to the
         extent of the amount of any premium required to be paid under the terms
         of the instrument governing such Indebtedness and the amount of
         reasonable expenses incurred by the Borrower in connection with such
         refinancing) and which, after giving effect thereto, contain terms and
         conditions (including, without limitation, subordination provisions (if
         any), covenants and events of default) that are no less favorable to
         the Lenders in any material respect taken as a whole than the terms and
         conditions thereof applicable before giving effect thereto, and (C); at
         any time that a Default or Event of Default shall not have occurred and
         be continuing or would result therefrom;

                  (e) Indebtedness of the Borrower or any Subsidiary to any
         Subsidiary and of any Subsidiary to the Borrower or any Subsidiary;

                  (f) preferred Capital Stock issued subsequent to the date
         hereof (including preferred Capital Stock issued as dividends thereon),
         PROVIDED that at the time of issuance thereof (other than in the case
         of preferred Capital Stock issued as dividends) no Default or Event of
         Default shall have occurred and be continuing or would result
         therefrom;

                  (g) (i) Exchange Debentures issued as interest on other
         Exchange Debentures in accordance with the Exchange Debenture Indenture
         and (ii) Exchangeable Preferred Stock issued as dividends on other
         Exchangeable Preferred Stock in accordance with its Certificate of
         Designation;

                  (h) additional unsecured Indebtedness of the Borrower not
         exceeding $10,000,000 in aggregate principal amount at any one time
         outstanding; and

                  (i) so long as the Borrower shall have delivered to the Lender
         pursuant to subsection 5.1 the financial statements of the Borrower and
         its Subsidiaries in respect of the fiscal quarter ended March 31, 2000,
         Exchange Debentures issued in exchange for Exchangeable Preferred Stock
         in accordance with the provisions of the applicable

<PAGE>   62
                                                                              57

         Certificate of Designations (as in effect on the date hereof) and the
         Exchange Debenture Indenture (as in effect on the date hereof);
         PROVIDED that at the time of issuance of such Exchange Debentures no
         Default or Event of Default shall have occurred and be continuing or
         would result therefrom on a pro forma basis.

                  6.3  LIENS AND RELATED MATTERS.

                  (a) PROHIBITIONS ON LIENS. Create, incur, assume or permit to
exist any Lien on or with respect to any property or asset (including any
document or instrument in respect of goods or accounts receivable) of the
Borrower or any of its Subsidiaries, whether now owned or hereafter acquired, or
any income or profits therefrom, except:

                        (i) Permitted Encumbrances;

                        (ii) (A) Liens securing purchase money Indebtedness
         permitted pursuant to subsection 6.2(c); PROVIDED that such Liens shall
         encumber only the assets purchased with the proceeds of such
         Indebtedness and (B) Liens securing Capital Leases permitted under
         subsection 6.2(c);

                        (iii) Liens granted pursuant to the Loan Documents;

                        (iv) Liens on assets listed on Schedule 6.2(d) securing
         Indebtedness on Schedule 6.2(d), other than Liens in respect of the
         Senior Subordinated Notes and the Preferred Stock.

                  (b) EQUITABLE LIEN IN FAVOR OF THE LENDERS. Create or assume
any Lien upon any of its property or assets, whether now owned or hereafter
acquired, other than Liens excepted by the provisions of this subsection, unless
the Borrower and its Subsidiaries make or cause to be made effective provision
whereby the Obligations will be secured by such Lien equally and ratably with
any and all other Indebtedness thereby secured as long as any such Indebtedness
shall be secured; PROVIDED that, notwithstanding the foregoing, this covenant
shall not be construed as a consent by the Required Lenders to any creation or
assumption of any such Lien not permitted by the provisions of this subsection.

                  (c) NO FURTHER NEGATIVE PLEDGES. Except with respect to
specific property encumbered to secure payment of particular Indebtedness
otherwise permitted pursuant to subsections 6.2 and 6.3 or to be sold pursuant
to an executed agreement with respect to an Asset Sale, enter into any agreement
prohibiting (i) the creation or assumption of any Lien upon its properties or
assets, whether now owned or hereafter acquired or (ii) any incurrence of any
Contingent Obligations.

                  (d) NO RESTRICTIONS ON SUBSIDIARY DISTRIBUTIONS TO THE
BORROWER. Except as provided herein, or as required by law, create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any Subsidiary to (a) pay dividends or
make any other distribution on any of such Subsidiary's capital stock,

<PAGE>   63
                                                                              58

partnership interests or other interests, as the case may be, owned by the
Borrower or any Subsidiary of the Borrower, (b) subject to subordination
provisions any payments in respect of any Indebtedness owed to the Borrower or
any Subsidiary of the Borrower, (c) make loans or advances to the Borrower or
any Subsidiary of the Borrower or (d) transfer any of its property or assets to
the Borrower or any Subsidiary of the Borrower.

                  6.4 INVESTMENTS; JOINT VENTURES. Make or own any Investment,
directly or indirectly, in any Person including any Joint Venture, except:

                  (a) Investments in Cash and Cash Equivalents;

                  (b) Consolidated Capital Expenditures and Acquisition Capital
         Expenditures otherwise permitted herein;

                  (c) Investments other than in a Core Business as to which the
         aggregate consideration paid or to be paid by the Borrower or its
         Subsidiaries shall not exceed $40,000,000;

                  (d) Investments in effect on the Closing Date as set forth on
         Schedule 6.4(d);

                  (e) Investments by the Borrower in any Subsidiary Guarantor
         and Investments by Subsidiaries in the Borrower and in any Subsidiary
         Guarantor;

                  (f) any acquisition (it being understood that, as used in this
         paragraph, the term "acquisition" shall mean any acquisition by means
         of a purchase of stock or assets or a merger or other similar
         transaction (including exercising any option to acquire assets or
         Capital Stock) and shall also include a transaction in which a Loan
         Party (i) enters into an LMA Agreement with the owner of a television
         station, (ii) either makes a loan to, or guarantees a loan made by a
         third party to, such owner secured by a Lien on the assets of such
         television station and (iii) obtains an option to acquire the FCC
         License covering such television station that satisfies the
         requirements of clause (v)(B) of this paragraph) not otherwise
         permitted under this subsection 6.4 (each such transaction referred to
         herein as a "PERMITTED ACQUISITION" and collectively as the "PERMITTED
         ACQUISITIONS"), on the following terms and conditions: (i) such
         Permitted Acquisition involves the acquisition of a Core Business and
         the aggregate consideration paid or to be paid by the Borrower or its
         Subsidiaries for any individual Permitted Acquisition shall not exceed
         $20,000,000, (ii) after giving effect to such Permitted Acquisition, no
         Event of Default or Default shall exist; (iii) the Borrower shall
         satisfy the requirements of subsections 5.10 and 5.11 in connection
         therewith; (iv) such acquisition shall result in the assets so acquired
         being owned by the Borrower or a wholly owned Subsidiary of the
         Borrower and, if such Permitted Acquisition involves the acquisition of
         a television station, the Borrower or a wholly owned Subsidiary shall
         have acquired in connection therewith either (A) the FCC License held
         by such Core Business or (B) an option to acquire such FCC License for
         a period greater than five years and (v) if such Permitted Acquisition
         involves the acquisition of a television station the FCC shall have
         approved such acquisition;

<PAGE>   64
                                                                              59

                  (g) Preapproved Acquisitions (including exercising any option
         to acquire assets or stock); PROVIDED that at the time of such
         acquisition no Event of Default shall have occurred and be continuing
         or would result therefrom;

                  (h) Investments by the Borrower or any Subsidiary arising from
         the acquisition of any Equivalent Assets in connection with any Asset
         Swap, PROVIDED that (i) the cash portion of such Investment satisfies
         the requirements for a Permitted Acquisition specified in subsection
         6.4(f), (ii) after giving effect to such Investment, no Default or
         Event of Default shall have occurred and be continuing or would result
         therefrom and (iii) no Asset Swap shall be permitted in any calendar
         year if, after giving effect thereto, all the assets transferred by the
         Borrower and its Subsidiaries pursuant to Asset Swaps during such
         calendar year shall have generated during the immediately preceding
         calendar year an aggregate amount of Consolidated Operating Cash Flow
         that exceeds 10% of Consolidated Operating Cash Flow of the Borrower
         and its Subsidiaries for such immediately preceding calendar year; and

                  (i) Investments, made solely with Net Cash Proceeds of the
         sale or issuance of equity Securities by the Borrower or any Subsidiary
         which are not required to be used to make a prepayment pursuant to
         subsection 2.6(a) and are not used in connection with any refinancing
         of Indebtedness permitted under subsection 6.2, in Unrestricted
         Subsidiaries in an aggregate amount not to exceed the sum of (i) the
         aggregate amount of Net Cash Proceeds from the sale or issuance of
         equity Securities by the Borrower or any Subsidiary that are not
         required to be used to make a prepayment pursuant to subsection 2.6(a)
         and are not used in connection with any refinancing of Indebtedness
         permitted under subsection 6.2 MINUS (ii) $250,000,000, PROVIDED that
         at the time of such acquisition no Default or Event of Default shall
         have occurred and be continuing or would result therefrom; and

                  (j) Investments consisting of promissory notes or other
         securities issued by a purchaser to the extent the Borrower or any
         Subsidiary receives less than 100% cash consideration in an Asset Sale
         as permitted by subsection 6.7(b).

                  6.5 CONTINGENT OBLIGATIONS. Create or become or be liable,
directly or indirectly, with respect to any Contingent Obligation except:

                  (a) Contingent Obligations incurred pursuant to the Loan
         Documents;

                  (b) Contingent Obligations in respect of Interest Rate
         Agreements in a notional amount not in excess of the aggregate
         principal amount of the Indebtedness of the Borrower and its
         Subsidiaries the interest rate on which is not fixed;

                  (c) Contingent Obligations resulting from the endorsement of
         negotiable instruments for collection in the ordinary course of
         business;

                  (d) Contingent Obligations in respect of Operating Leases;

<PAGE>   65
                                                                              60

                  (e) Contingent Obligations in respect of Indebtedness
         permitted under subsection 6.2; and

                  (f) Contingent Obligations in respect of loans by third
         parties to owners or holders of options to acquire LMA Television
         Stations otherwise permitted by subsection 6.4(j) and in respect of
         obligations not exceeding $65,000,000 in aggregate principal amount at
         any time outstanding.

                  6.6 RESTRICTED PAYMENTS. Declare, order, pay, make or set
apart any sum, directly or indirectly, for any Restricted Payment except, so
long as no Event of Default or Default has occurred and is continuing or would
result therefrom:

                  (a) so long as (i) the Borrower shall have delivered to the
         Lender pursuant to subsection 5.1 the financial statements of the
         Borrower and its Subsidiaries in respect of the fiscal quarter ended
         March 31, 2000, (ii) no Default or Event of Default shall have occurred
         and be continuing at such time and (iii) the Leverage Ratio of the
         Borrower and its Subsidiaries as of the last day of the most recently
         ended calendar quarter is less than 4.50:1.00, the Borrower may pay in
         cash annual dividends owed to the holders of the Cumulative Preferred
         Stock in accordance with the terms and conditions of the Certificate of
         Designation applicable thereto;

                  (b) Restricted Payments with any proceeds from the issuance of
         equity Securities permitted by subsection 6.7(d), which proceeds are
         not required to be prepaid pursuant to subsection 2.6(a);

                  (c) payments under time brokerage agreements and LMA
         Agreements; PROVIDED such payments are made in the ordinary course of
         business and such agreements are no less favorable to the Borrower or
         any Subsidiary, as the case may be, than those that would otherwise be
         obtained in an arms-length transaction;

                  (d) any Subsidiary may make Restricted Payments to the
         Borrower or any Subsidiary Guarantor;

                  (e) any additional redemption in an amount not to exceed
         $100,000;

                  (f) (i) Exchange Debentures issued as interest on other
         Exchange Debentures in accordance with the Exchange Debenture Indenture
         and (ii) Exchangeable Preferred Stock issued as a dividend on other
         Exchangeable Preferred Stock in accordance with its Certificate of
         Designation; and

                  (g) so long as no Default or Event of Default shall have
         occurred and be continuing, cash dividends to the holders of the
         Cumulative Preferred Stock due on December 31, 1999 and thereafter in
         accordance with the terms and conditions of its Certificate of
         Designations.

<PAGE>   66
                                                                              61

                  6.7 RESTRICTION ON FUNDAMENTAL CHANGES; ASSET SALES. Alter the
corporate, partnership, capital or legal structure of the Borrower or any of its
Subsidiaries or enter into any transaction of merger, or consolidate, or
liquidate, wind-up or dissolve itself (or suffer any liquidation or
dissolution), or convey, sell, lease, sub-lease, transfer or otherwise dispose
of, in one transaction or a series of transactions, all or any part of its
business, property or assets (including, without limitation, any of the capital
stock or partnership interests held by such Person in any of its Subsidiaries),
whether now owned or hereafter acquired (other than in the ordinary course of
business), or acquire by purchase, lease or otherwise (in one transaction or a
series of related transactions) all or any part of the business, property or
fixed assets of, or stock or other evidence of beneficial ownership of, any
Person (other than purchases or other acquisitions of inventory, leases,
materials, property and equipment in the ordinary course of business) or agree
to do any of the foregoing at any future time, except:

                  (a) Consolidated Capital Expenditures and Acquisition Capital
         Expenditures;

                  (b) (i) prior to such time as the Borrower shall have
         delivered to the Lender pursuant to subsection 5.1 the financial
         statements of the Borrower and its Subsidiaries in respect of the
         fiscal quarter ended March 31, 2000, Excluded Asset Sales and the other
         Asset Sales specified in the parenthetical phrase included in
         subsection 2.6(b) and (ii) thereafter, any Asset Sale so long as the
         Net Cash Proceeds of such Asset Sale are applied as required by
         subsection 2.6(b); PROVIDED that, in the case of clauses (i) and (ii),
         (x) the consideration received shall be an amount at least equal to the
         fair market value thereof; (y) at least 85% (or 75% in the case of
         Asset Sales excluded from the prepayment obligations of subsection
         2.6(b)) of the consideration received shall be cash or Cash
         Equivalents; and (z) no Default or Event of Default shall have occurred
         and be continuing or would result therefrom;

                  (c) Investments permitted by subsection 6.4; and

                  (d) the issuance of equity or debt Securities of the Borrower
         and its Subsidiaries as otherwise permitted by this Agreement;

                  (e) any Subsidiary of the Borrower may be merged or
         consolidated with or into the Borrower (PROVIDED that the Borrower
         shall be the continuing or surviving corporation) or with or into any
         wholly owned Subsidiary (PROVIDED that a wholly owned Subsidiary
         Guarantor shall be the continuing or surviving corporation);

                  (f) any Subsidiary of the Borrower may Dispose of any or all
         of its assets (upon voluntary liquidation or otherwise) to the Borrower
         or any wholly owned Subsidiary Guarantor and, in the event such
         Subsidiary shall so Dispose of all of its assets, such Subsidiary may
         liquidate, wind up or dissolve; and

                  (g) any Asset Swap, so long as (i) after giving effect thereto
         no Default or Event of Default shall have occurred and be continuing,
         (ii) the Borrower shall have given the

<PAGE>   67
                                                                              62

         Administrative Agent prior notice thereof, (iii) the consideration
         received therefor shall be at least equal to the fair market value
         thereof, (iv) if and to the extent that the Borrower or any Subsidiary
         receives consideration for the assets transferred by it in connection
         with such Asset Swap that is in addition to the Equivalent Assets
         received in exchange therefor, such Asset Swap shall be deemed to be an
         Asset Sale and shall be permitted only if the provisions of subsections
         2.6(a) and 6.7(b)(y) shall be complied with in connection therewith and
         (v) no Asset Swap shall be permitted in any calendar year if, after
         giving effect thereto, all the assets transferred by the Borrower and
         its Subsidiaries pursuant to Asset Swaps during such calendar year
         shall have generated during the immediately preceding calendar year an
         aggregate amount of Consolidated Operating Cash Flow that exceeds 10%
         of Consolidated Operating Cash Flow of the Borrower and its
         Subsidiaries for such immediately preceding calendar year.

                  6.8 FISCAL YEAR. Change its fiscal year-end from December 31
without the consent of the Required Lenders.

                  6.9 SALES AND LEASE-BACKS. Become or remain liable, directly
or indirectly, as lessee or as guarantor or other surety with respect to any
lease, whether an Operating Lease or a Capital Lease, of any property (whether
real or personal or mixed) whether now owned or hereafter acquired, (i) which
the Borrower or any of its Subsidiaries has sold or transferred or is to sell or
transfer to any other Person (other than the Borrower or any of its
Subsidiaries), or (ii) which the Borrower or any such Subsidiary of the Borrower
intends to use for substantially the same purpose as any other property which
has been or is to be sold or transferred by the Borrower or any such Subsidiary
of the Borrower to any Person (other than the Borrower or one of its
Subsidiaries) in connection with such lease.

                  6.10 SALE OR DISCOUNT OF RECEIVABLES. Sell, directly or
indirectly, any of their notes or accounts receivable other than in the ordinary
course of business.

                  6.11 TRANSACTIONS WITH SHAREHOLDERS AND AFFILIATES. Enter into
or permit to exist any transaction (including, without limitation, the purchase,
sale, lease or exchange of any property or the rendering of any service),
directly or indirectly, with any holder (other than any Subsidiary directly or
indirectly wholly owned by the Borrower) of 5% or more of any class of equity
Securities or other interests of the Borrower or any of its Subsidiaries or with
any Affiliate of the Borrower or of any such holder, as the case may be, on
terms that, taken as a whole, are less favorable to the Borrower or any
Subsidiary, as the case may be, than those that might be obtained at the time
from Persons who are not such a holder or Affiliate.

                  6.12 DISPOSAL OF SUBSIDIARY STOCK. Except as permitted by
subsection 6.7:

                        (i) directly or indirectly sell, assign, pledge or
         otherwise encumber or dispose of any shares of capital stock,
         partnership interests, or other equity securities of (or warrants,
         rights or options to acquire shares or other equity securities of) any
         of its Subsidiaries, except to qualify directors if required by
         applicable law; or

<PAGE>   68
                                                                              63

                       (ii) permit any of its Subsidiaries directly or
         indirectly to sell, assign, pledge or otherwise encumber or dispose of
         any shares of capital stock, partnership interests, or other securities
         of (or warrants, rights or options to acquire shares or other
         securities of) any of its Subsidiaries, except to the Borrower, a
         Subsidiary of the Borrower, or to qualify directors if required by
         applicable law.

                  6.13 CONDUCT OF BUSINESS. Engage in any business other than
(i) a Core Business, (ii) a non Core business (but only as a result of an
Investment permitted by subsection 6.4(c)), (iii) the ownership of Unrestricted
Subsidiaries acquired in connection with Investments permitted by subsection
6.4(i) and (iv) such other lines of business as may be consented to by the Agent
and the Required Lenders; PROVIDED that in accordance with Section 5.10 neither
the Borrower nor any of its Subsidiaries (other than a License Subsidiary) shall
directly own or hold any FCC License applicable to its business, it being
understood that all such interests, if owned, shall be owned and maintained by
the License Subsidiaries. Notwithstanding anything to the contrary in this
Agreement, including, without limitation, any references to "Subsidiaries", (A)
neither the Borrower nor any of its Subsidiaries shall except as permitted by
subsection 6.4 and in accordance with Section 5.11, create or acquire any
interest in a Subsidiary after the Closing Date other than maintenance of their
interests in their respective Subsidiaries as of the Closing Date, and (B) no
License Subsidiary of the Borrower shall engage in any business or incur any
liabilities other than the ownership of its FCC Licenses and the execution,
delivery and performance of the Loan Documents and Related Documents to which it
is a party and activities necessary to the foregoing.

                  6.14 AMENDMENTS OR WAIVERS OF RELATED DOCUMENTS AND CHARTER
DOCUMENTS; LIMITATION ON OPTIONAL PAYMENTS.

                  (a) Agree to any amendment to, or waive any of its rights
under, any of the Related Documents (other than non-material amendments or
waivers which individually, or together with all other amendments, waivers or
changes made, would not be materially adverse to the Borrower or any of its
Subsidiaries or the Agent or any Lender), without obtaining the written consent,
not to be unreasonably withheld, of the Agent and the Required Lenders to such
amendment or waiver.

                  (b) Agree to any amendment to, or waive any of its rights
under, its articles of incorporation (including but not limited to the
Certificate of Designations), by-laws, partnership agreement or other documents
relating to its capital stock or other equity interests of the Borrower or its
Subsidiaries (other than amendments or waivers which individually, or together
with all other amendments, waivers or changes made, would not be materially
adverse to the Borrower or any of its Subsidiaries or the Agent or any Lender)
without, in each case, obtaining the written consent of the Agent and the
Required Lenders to such amendment or waiver.

                  (c) Other than with the Net Cash Proceeds of the sale or
issuance of equity Securities not required to be used to make a prepayment
pursuant to subsection 2.6(a) or in connection with any refinancing of
Indebtedness permitted under subsection 6.2, make any optional payment or
prepayment on or redemption, defeasance or purchase of any Indebtedness

<PAGE>   69
                                                                              64

(excluding the Obligations, but including but not limited to the Exchangeable
Preferred Stock, Exchange Debentures, Senior Subordinated Notes or Subordinated
Debt), or amend, modify or change, or consent or agree to any amendment,
modification or change to, any of the terms relating to (i) any Indebtedness
other than the Obligations and the preferred stock (other than any such
amendment, modification or change (including, without limitation, pursuant to a
waiver) which would extend the maturity or reduce the amount of any payment of
principal thereof or which would reduce the rate or extend the date for payment
of interest thereon or pursuant to Section 8.01 of the Senior Subordinated Note
Indenture or Section 8.01 of the Exchange Debenture Indenture), or (ii) the
subordination of the Senior Subordinated Notes, the Exchange Debentures or
Subordinated Debt.

                          SECTION 7. EVENTS OF DEFAULT

                  If any of the following events shall occur and be continuing:

                  (a) Failure of any Loan Party to pay any installment of
         principal of any Loan when due in accordance with the terms hereof; or
         any Loan Party shall fail to pay any interest on any Loan when due or
         any other amount due pursuant to the Loan Documents within two Business
         Days after the date due in accordance with the terms thereof or hereof;
         or

                  (b) Failure of any Loan Party or any of their respective
         Subsidiaries or any Unrestricted Subsidiary to pay when due (x) any
         principal or interest on any Indebtedness (other than Indebtedness
         referred to in paragraph (a) of this Section and intercompany debt) in
         an individual principal amount of $5,000,000 or more or items of
         Indebtedness with an aggregate principal amount of $5,000,000 or more
         or (y) any Contingent Obligation in an individual principal amount of
         $5,000,000 or more or Contingent Obligations with an aggregate
         principal amount of $5,000,000 or more, in each case beyond the end of
         any grace period PROVIDED therefor; or

                  (c) Breach or default of any Loan Party or any of their
         respective Subsidiaries or any Unrestricted Subsidiary with respect to
         any other material term of (i) (x) any evidence of any Indebtedness
         (other than intercompany debt) in an individual principal amount of
         $5,000,000 or more or items of Indebtedness (other than intercompany
         debt) with an aggregate principal amount of $5,000,000 or more or any
         Contingent Obligation in an individual principal amount of $5,000,000
         or more or Contingent Obligations with an aggregate principal amount of
         $5,000,000 or more or (y) any loan agreement, mortgage, indenture or
         other agreement relating thereto, if the effect of such failure,
         default or breach is to cause, or to permit the holder or holders of
         that Indebtedness or Contingent Obligation (or a trustee on behalf of
         such holder or holders) then to cause, that Indebtedness or Contingent
         Obligation to become or be declared due prior to its stated maturity
         (or the stated maturity of any underlying obligation, as the case may
         be) or (ii) the Related Documents which could reasonably be expected to
         have a Material Adverse Effect; or

<PAGE>   70
                                                                              65

                  (d) Failure of the Borrower to perform or comply with any term
         or condition contained in subsection 5.2 or Section 6; or

                  (e) Any representation, warranty, certification or other
         statement made by any Loan Party in any Loan Document or in any
         statement or certificate at any time given by any Loan Party in writing
         pursuant hereto or in connection herewith or therewith, shall be false
         in any material respect on the date as of which made; or

                  (f) Any Loan Party shall default in the performance of or
         compliance with any term contained in this Agreement or the other Loan
         Documents, applicable to that Loan Party, other than those referred to
         elsewhere in this Section 7 and such default shall not have been
         remedied or waived within 30 days after the earlier of (i) receipt by
         the Borrower of notice from any Lender or the Agent of such default or
         (ii) the Borrower's knowledge of such default; or

                  (g) (i) A court having jurisdiction in the premises shall
         enter a decree or order for relief in respect of any Loan Party or any
         of their respective Subsidiaries or any Unrestricted Subsidiary in an
         involuntary case under the Bankruptcy Code or any applicable
         bankruptcy, insolvency or other similar law now or hereafter in effect,
         which decree or order is not stayed; or any other similar relief shall
         be granted under any applicable federal or state law; or (ii) an
         involuntary case is commenced against any Loan Party or any of their
         respective Subsidiaries or any Unrestricted Subsidiary under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect; or a decree or order of a court having jurisdiction in the
         premises for the appointment of a receiver, liquidator, sequestrator,
         trustee, custodian or other officer having similar powers over any Loan
         Party or any of their respective Subsidiaries or any Unrestricted
         Subsidiary, or over all or a substantial part of its property, shall
         have been entered; or the involuntary appointment of an interim
         receiver, trustee or other custodian of any Loan Party or any of their
         respective Subsidiaries or any Unrestricted Subsidiary for all or a
         substantial part of its property; or the issuance of a warrant of
         attachment, execution or similar process against any substantial part
         of the property of any Loan Party or any of their respective
         Subsidiaries or any Unrestricted Subsidiary, and the continuance of any
         such event in clause (ii) for 60 days unless dismissed, bonded or
         discharged; or

                  (h) Any Loan Party or any of their respective Subsidiaries or
         any Unrestricted Subsidiary shall have an order for relief entered with
         respect to it or commence a voluntary case under the Bankruptcy Code or
         any applicable bankruptcy, insolvency or other similar law now or
         hereafter in effect, or shall consent to the entry of an order for
         relief in an involuntary case, or to the conversion of an involuntary
         case to a voluntary case, under any such law, or shall consent to the
         appointment of or taking possession by a receiver, trustee or other
         custodian for all or a substantial part of its property; the making by
         any Loan Party or any of their respective Subsidiaries or any
         Unrestricted Subsidiary of any assignment for the benefit of creditors;
         or

<PAGE>   71
                                                                              66

                  (i) The inability or failure of any Loan Party or any of their
         respective Subsidiaries or any Unrestricted Subsidiary, or the
         admission by any Loan Party or any of their respective Subsidiaries or
         any Unrestricted Subsidiary in writing of its inability, to pay its
         debts as such debts become due; or the Board of Directors (or any
         committee thereof) of any Loan Party or any of their respective
         Subsidiaries or any Unrestricted Subsidiary adopts any resolution or
         otherwise authorizes action to approve any of the actions referred to
         in this clause (i); or

                  (j) Any money judgment, writ or warrant of attachment, or
         similar process involving (i) in any individual case an amount in
         excess of $5,000,000, or (ii) in the aggregate at any time an amount in
         excess of $5,000,000, and in either case not adequately covered by
         insurance as to which the insurance company has acknowledged coverage
         shall be entered or filed against any Loan Party or any of their
         respective Subsidiaries or any Unrestricted Subsidiary or any of their
         respective assets and shall remain undischarged, unvacated, unbonded or
         unstayed for a period of 30 days or in any event later than five days
         prior to the date of any proposed sale thereunder; or

                  (k) Any order, judgment or decree shall be entered against any
         Loan Party or any of their respective Subsidiaries decreeing a
         dissolution or split-up of any Loan Party or any of their respective
         Subsidiaries, and such order shall remain undischarged or unstayed for
         a period in excess of 30 days; or

                  (l) There occurs one or more ERISA Events which singly or in
         the aggregate results in liability to the Borrower or any ERISA
         Affiliate in excess of $1,000,000; or there exists, as of any valuation
         date for a Pension Plan, an excess of the actuarial present value
         (determined on the basis of reasonable assumptions employed by the
         independent actuary for such Pension Plan) of the benefit liabilities
         (as defined in Section 4001(a)(16) of ERISA), whether or not vested
         over the fair market value of the assets of such Pension Plan,
         individually or in the aggregate for all Pension Plans (excluding for
         purposes of such computation any Pension Plans with respect to which
         there is no such excess) which exceeds $1,000,000; or

                  (m) Any Guaranty for any reason, other than the satisfaction
         in full of all Obligations, ceases to be in full force and effect
         (other than in accordance with its terms) or is declared to be null and
         void, or any Loan Party denies that it has any further liability,
         including without limitation with respect to future advances by the
         Lenders, under any Loan Document to which it is a party, or gives
         notice to such effect; or

                  (n) Any Security Document shall, at any time, cease to be in
         full force and effect (other than by reason of a release of Collateral
         in accordance with the terms thereof) or shall be declared null and
         void, or the validity or enforceability thereof shall be contested by
         any Loan Party or the Agent shall not have or cease to have a valid and
         perfected first priority security interest in the Collateral other than
         the failure of the Agent or any Lender to take any action within its
         control; or

<PAGE>   72
                                                                              67

                  (o) Any FCC License shall be (i) canceled, terminated or
         finally denied renewal for any reason; or (ii) renewed on terms which
         materially adversely affect the economic or commercial value or
         usefulness thereof; or

                  (p) Any event having a Material Adverse Effect shall occur and
         such default shall not have been remedied or waived within 30 days
         after receipt by the Borrower of notice from any Lender or the Agent of
         such default; or

                  (q) The Borrower or any of its Subsidiaries shall fail to
         comply in all material respects with the requirements of any FCC
         consent obtained to consummate any acquisition; or

                  (r) Any of the following shall occur: (i) any Subsidiary of
         the Borrower shall issue or have outstanding any Capital Stock (or any
         security convertible into any of its Capital Stock) which is not
         pledged to the Agent for the benefit of the Lenders in a manner
         reasonably satisfactory to the Required Lenders, except to the extent
         listed on Schedule 7(r) or waived by the Agent or the Lenders hereunder
         in accordance with the terms hereof; (ii) the Borrower or a Subsidiary
         of the Borrower shall fail to own and control, of record and
         beneficially, 100% of the issued and outstanding Capital Stock of each
         License Subsidiary free and clear of all Liens (except Liens created
         pursuant to the Borrower Pledge Agreement or the Subsidiaries Pledge
         Agreement), except to the extent listed on Schedule 7(r) or waived by
         the Agent or the Lenders hereunder in accordance with the terms hereof;
         (iii) Paxson (or, after his death, collectively, his heirs or estate or
         both) shall cease to own and control, of record and beneficially,
         Capital Stock of the Borrower possessing the voting power under normal
         circumstances to cast 51% or more of the total votes entitled to be
         cast for the election of directors of the Borrower and (iv) Paxson (or,
         after his death, collectively, his heirs or estate or both) shall no
         longer have the voting power or the contractual right to elect a
         majority of the Borrower's directors; or

                  (s) if Network Start-Up shall not have occurred and be
         continuing on September 1, 1998 or shall cease to exist at any time
         thereafter;

then, and in any such event, (A) if such event is an Event of Default specified
in paragraphs (g), (h) or (i) of this Section with respect to the Borrower,
automatically the Commitments shall immediately terminate and the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement shall immediately become due and payable, and (B) if such event is any
other Event of Default, either or both of the following actions may be taken:
(i) with the consent of the Required Lenders, the Agent may, or upon the request
of the Required Lenders, the Agent shall, by notice to the Borrower declare the
Commitments to be terminated forthwith, whereupon the Commitments shall
immediately terminate; and (ii) with the consent of the Required Lenders, the
Agent may, or upon the request of the Required Lenders, the Agent shall, by
notice to the Borrower, declare the Loans hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement to be due and payable
forthwith, whereupon the same shall immediately become due and payable. Except
as expressly provided above in this

<PAGE>   73
                                                                              68

Section, presentment, demand, protest and all other notices of any kind are
hereby expressly waived.

                              SECTION 8. THE AGENT

                  8.1 APPOINTMENT. Each Lender hereby irrevocably designates and
appoints the Agent as the agent of such Lender under this Agreement and the
other Loan Documents, and each such Lender irrevocably authorizes the Agent, in
such capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the Agent by the terms of this
Agreement and the other Loan Documents, together with such other powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Agent.

                  8.2 DELEGATION OF DUTIES. The Agent may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys in-fact selected by it with
reasonable care.

                  8.3 EXCULPATORY PROVISIONS. Neither the Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be
(i) liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with this Agreement or any other Loan Document
(except for its or such Person's own gross negligence or willful misconduct) or
(ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by the Borrower or any officer
thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Agent under or in connection with, this Agreement or any
other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of the Borrower to perform its obligations hereunder or
thereunder. The Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of the Borrower.

                  8.4 RELIANCE BY THE AGENT. The Agent shall be entitled to
rely, and shall be fully protected in relying, upon any Note, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order or other document or conversation believed by
it to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including,
without limitation, counsel to the Borrower), independent accountants and other
experts selected by the Agent. The

<PAGE>   74
                                                                              69

Agent may deem and treat the payee of any Note as the owner thereof for all
purposes unless a written notice of assignment, negotiation or transfer thereof
shall have been filed with the Agent. The Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action. The
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement and the other Loan Documents in accordance with a
request of the Required Lenders, and such request and any action taken or
failure to act pursuant thereto shall be binding upon all the Lenders and all
future holders of the Loans.

                  8.5 NOTICE OF DEFAULT. The Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless the Agent has received notice from a Lender or the Borrower
referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a "notice of default". In the event that the Agent
receives such a notice, the Agent shall give notice thereof to the Lenders. The
Agent shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders; PROVIDED that unless and
until the Agent shall have received such directions, the Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Lenders.

                  8.6 NON-RELIANCE ON THE AGENT AND OTHER LENDERS. Each Lender
expressly acknowledges that neither the Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Agent hereinafter
taken, including any review of the affairs of the Borrower, shall be deemed to
constitute any representation or warranty by the Agent to any Lender. Each
Lender represents to the Agent that it has, independently and without reliance
upon the Agent or any other Lender, and based on such documents and information
as it has deemed appropriate, made its own appraisal of and investigation into
the business, operations, property, financial and other condition and
creditworthiness of the Borrower and made its own decision to make its Loans
hereunder and enter into this Agreement. Each Lender also represents that it
will, independently and without reliance upon the Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Borrower. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Agent
hereunder, the Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, operations,
property, condition (financial or otherwise), prospects or creditworthiness of
the Borrower which may come into the possession of the Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates.

                  8.7 INDEMNIFICATION. The Lenders agree to indemnify the Agent
in its capacity as such (to the extent not reimbursed by the Borrower and
without limiting the obligation of the

<PAGE>   75
                                                                              70

Borrower to do so), ratably according to their respective Commitment Percentages
in effect on the date on which indemnification is sought (or, if indemnification
is sought after the date upon which the Commitments shall have terminated and
the Loans shall have been paid in full, ratably in accordance with their
Commitment Percentages immediately prior to such date), from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever which may at any
time (including, without limitation, at any time following the payment of the
Loans) be imposed on, incurred by or asserted against the Agent in any way
relating to or arising out of, the Commitments, this Agreement, any of the other
Loan Documents or any documents contemplated by or referred to herein or therein
or the transactions contemplated hereby or thereby or any action taken or
omitted by the Agent under or in connection with any of the foregoing; PROVIDED
that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting solely from the Agent's gross
negligence or willful misconduct. The agreements in this subsection shall
survive the payment of the Loans and all other amounts payable hereunder.

                  8.8 THE AGENT IN ITS INDIVIDUAL CAPACITY. The Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with the Borrower as though the Agent were not the Agent
hereunder and under the other Loan Documents. With respect to the Loans made by
it, the Agent shall have the same rights and powers under this Agreement and the
other Loan Documents as any Lender and may exercise the same as though it were
not the Agent, and the terms "Lender" and "Lenders" shall include the Agent in
its individual capacity.

                  8.9 SUCCESSOR THE AGENT. The Agent may resign as the Agent
upon 10 days' notice to the Lenders and the Borrower and the Agent may be
removed at any time with or without cause by an instrument or concurrent
instruments in writing delivered to the Borrower and Agent and signed by
Required Lenders. If the Agent shall resign or be removed as the Agent under
this Agreement and the other Loan Documents, then the Required Lenders shall
appoint from among the Lenders a successor agent for the Lenders, which
successor agent shall be approved by the Borrower, whereupon such successor
agent shall succeed to the rights, powers and duties of the Agent, and the term
"the Agent" shall mean such successor agent effective upon such appointment and
approval, and the former Agent's rights, powers and duties as the Agent shall be
terminated, without any other or further act or deed on the part of such former
Agent or any of the parties to this Agreement or any holders of the Loans. After
any retiring the Agent's resignation as the Agent, the provisions of this
Section 8 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was the Agent under this Agreement and the other Loan
Documents.

<PAGE>   76
                                                                              71

                            SECTION 9. MISCELLANEOUS

       9.1 AMENDMENTS AND WAIVERS. Neither this Agreement nor any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this subsection. The
Required Lenders may, or, with the written consent of the Required Lenders, the
Agent may, from time to time, (a) enter into with the Borrower written
amendments, supplements or modifications hereto and to the other Loan Documents
for the purpose of adding any provisions to this Agreement or the other Loan
Documents or changing in any manner the rights of the Lenders or of the Borrower
hereunder or thereunder or (b) waive, on such terms and conditions as the
Required Lenders or the Agent, as the case may be, may specify in such
instrument, any of the requirements of this Agreement or the other Loan
Documents or any Default or Event of Default and its consequences; PROVIDED,
HOWEVER, that no such waiver and no such amendment, supplement or modification
shall (i) reduce the amount or extend the scheduled date of maturity of any
scheduled payment of any Loan or of any scheduled installment thereof, or reduce
the stated rate of any interest or fee payable hereunder or extend the scheduled
date of any payment thereof or increase the aggregate amount or extend the
expiration date of any Lender's Commitments, in each case without the consent of
each Lender affected thereby, or (ii) amend, modify or waive any provision of
this subsection or reduce the percentage specified in the definition of Required
Lenders, or consent to the assignment or transfer by the Borrower of any of its
rights and obligations under this Agreement and the other Loan Documents or
release all or substantially all of the Collateral, in each case except in
connection with any disposition of assets permitted by subsection 6.7, and in
each case without the written consent of all the Lenders, or (iii) amend, modify
or waive any provision of Section 8 without the written consent of the then
Agent. Any such waiver and any such amendment, supplement, modification or
release shall apply equally to each of the Lenders and shall be binding upon the
Borrower, the Lenders, the Agent and all future holders of the Loans. In the
case of any waiver, the Borrower, the Lenders and the Agent shall be restored to
their former positions and rights hereunder and under the other Loan Documents,
and any Default or Event of Default waived shall be deemed to be cured and not
continuing; no such waiver shall extend to any subsequent or other Default or
Event of Default or impair any right consequent thereon.

                  9.2 NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
facsimile transmission) and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made (a) in the case of delivery by hand,
when delivered, (b) in the case of delivery by mail, three days after being
deposited in the mails, postage prepaid, or (c) in the case of delivery by
facsimile transmission, when sent and receipt has been confirmed, addressed as
follows in the case of the Borrower and the Agent, and as set forth in Schedule
1.1A in the case of the other parties hereto, or to such other address as may be
hereafter notified by the respective parties hereto:

<PAGE>   77
                                                                              72

         The Borrower:     Paxson Communications Corporation
                                  601 Clearwater Park Road
                                  West Palm Beach, Florida  33401
                                  Attention:  Arthur Tek
                                  Fax: 561-659-4252
                                  with a copy to Anthony Morrison at the
                                  foregoing address and to fax no: 561-659-4754

         The Agent:               Union Bank of California, N.A.
                                  445 South Figueroa Street
                                  Los Angeles, California  90071-1602
                                  Attention: Christine P. Ball
                                  Fax: 213-236-5747
                                  with a copy to Bryan Petermann at the
                                  foregoing address

PROVIDED that any notice, request or demand to or upon the Agent or the Lenders
pursuant to subsection 2.2, 2.5, 2.6, 2.7, 2.12 or 9.6 shall not be effective
until received.

                  9.3 NO WAIVER; CUMULATIVE REMEDIES. No failure to exercise and
no delay in exercising, on the part of the Agent or any Lender, any right,
remedy, power or privilege hereunder or under the other Loan Documents shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and
not exclusive of any rights, remedies, powers and privileges provided by law.

                  9.4 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties made hereunder, in the other Loan Documents and
in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement
and the making of the Loans hereunder.

                  9.5 PAYMENT OF EXPENSES AND TAXES. The Borrower agrees (a) to
pay or reimburse the Agent for all its reasonable out-of-pocket costs and
expenses incurred in connection with the development, preparation and execution
of, and any amendment, supplement or modification to, this Agreement and the
other Loan Documents and any other documents prepared in connection herewith or
therewith, and the consummation and administration of the transactions
contemplated hereby and thereby, including, without limitation, the reasonable
fees and disbursements of counsel to the Agent, (b) to pay or reimburse each
Lender and the Agent for all its costs and expenses incurred in connection with
the enforcement or preservation of any rights under this Agreement, the other
Loan Documents and any such other documents, including, without limitation, the
fees and disbursements of counsel (including the allocated fees and expenses of
in-house counsel) to each Lender and of counsel to the Agent, (c) to pay,
indemnify, and hold each Lender and the Agent harmless from, any and all
recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying, stamp, excise and other

<PAGE>   78
                                                                              73

taxes (which are Non-Excluded Taxes), if any, which may be payable or determined
to be payable in connection with the execution and delivery of, or consummation
or administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the other Loan Documents and any such other documents, and (d)
to pay, indemnify, and hold each Lender and the Agent harmless from and against
any and all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance and
administration of this Agreement, the other Loan Documents and any such other
documents, including, without limitation, any of the foregoing relating to the
violation of, noncompliance with or liability under, any Environmental Law
applicable to the operations of the Borrower, any of its Subsidiaries or any of
its properties or assets (all the foregoing in this clause (d), collectively,
the "indemnified liabilities"), PROVIDED, that the Borrower shall have no
obligation under this subsection 9.5 to the Agent or any Lender with respect to
indemnified liabilities arising from the gross negligence or willful misconduct
of the Agent or any such Lender. The agreements in this subsection shall survive
repayment of the Loans and all other amounts payable hereunder.

                  9.6 SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS.
(a) This Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lenders, the Agent and their respective successors and assigns,
except that the Borrower may not assign or transfer any of its rights or
obligations under this Agreement without the prior written consent of each
Lender.

                  (b) Any Lender may, in the ordinary course of its commercial
banking business and in accordance with applicable law, at any time sell to one
or more banks or other entities ("PARTICIPANTS") participating interests in any
Loan owing to such Lender, any Commitment of such Lender or any other interest
of such Lender hereunder and under the other Loan Documents. In the event of any
such sale by a Lender of a participating interest to a Participant, such
Lender's obligations under this Agreement to the other parties to this Agreement
shall remain unchanged, such Lender shall remain solely responsible for the
performance thereof, such Lender shall remain the holder of any such Loan for
all purposes under this Agreement and the other Loan Documents, and the Borrower
and the Agent shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement and
the other Loan Documents. The Borrower agrees that if amounts outstanding under
this Agreement are due or unpaid, or shall have been declared or shall have
become due and payable upon the occurrence of an Event of Default, each
Participant shall, to the maximum extent permitted by applicable law, be deemed
to have the right of setoff in respect of its participating interest in amounts
owing under this Agreement to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement, PROVIDED that, in purchasing such participating interest, such
Participant shall be deemed to have agreed to share with the Lenders the
proceeds thereof as provided in subsection 9.7(a) as fully as if it were a
Lender hereunder. The Borrower also agrees that each Participant shall be
entitled to the benefits of subsections 2.14, 2.15, 2.16 with respect to its
participation in the Commitments and the Loans outstanding from time to time as
if it was a Lender; PROVIDED that, in the case of subsection 2.15, such
Participant shall have complied with the requirements of said subsection and
PROVIDED, FURTHER, that no Participant shall be entitled to receive any greater
amount pursuant to any such

<PAGE>   79
                                                                              74

subsection than the transferor Lender would have been entitled to receive in
respect of the amount of the participation transferred by such transferor Lender
to such Participant had no such transfer occurred.

                  (c) Any Lender may, in the ordinary course of its commercial
banking business and in accordance with applicable law, at any time and from
time to time assign to any Lender or any affiliate thereof or, with the consent
of the Borrower and the Agent (which in each case shall not be unreasonably
withheld), to an additional bank or financial institution ("an ASSIGNEE") all or
any part of its rights and obligations under this Agreement and the other Loan
Documents pursuant to an Assignment and Acceptance, substantially in the form of
Exhibit H, executed by such Assignee, such assigning Lender (and, in the case of
an Assignee that is not then a Lender or an affiliate thereof, by the Borrower
and the Agent) and delivered to the Agent for its acceptance and recording in
the Register PROVIDED that (i) no such assignment to an Assignee (other than any
Lender or any affiliate thereof) shall be in an aggregate principal amount of
less than $5,000,000 (other than in the case of an assignment of all of a
Lender's interests under this Agreement) and (ii) after giving effect to any
such assignment (other than an assignment of all of a Lender's interests under
this Agreement), the assigning Lender (together with any Lender which is an
affiliate of such assigning Lender) shall retain Loans and/or Commitments
aggregating not less than $5,000,000. Upon such execution, delivery, acceptance
and recording, from and after the effective date determined pursuant to such
Assignment and Acceptance, (x) the Assignee thereunder shall be a party hereto
and, to the extent provided in such Assignment and Acceptance, have the rights
and obligations of a Lender hereunder with a Commitment as set forth therein,
and (y) the assigning Lender thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining
portion of an assigning Lender's rights and obligations under this Agreement,
such assigning Lender shall cease to be a party hereto). Notwithstanding any
provision of this paragraph (c) and paragraph (e) of this subsection, the
consent of the Borrower shall not be required, and, unless requested by the
Assignee and/or the assigning Lender, new Notes shall not be required to be
executed and delivered by the Borrower, for any assignment which occurs at any
time when any of the events described in paragraphs (g), (h) or (i) of Section 7
shall have occurred and be continuing.

                  (d) The Agent, on behalf of the Borrower, shall maintain at
the address of the Agent referred to in subsection 9.2 a copy of each Assignment
and Acceptance delivered to it and a register (the "REGISTER") for the
recordation of the names and addresses of the Lenders and the Commitments of,
and principal amounts of the Loans owing to, each Lender from time to time. The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrower, the Agent and the Lenders may (and, in the case of any Loan or
other obligation hereunder not evidenced by a Note, shall) treat each Person
whose name is recorded in the Register as the owner of a Loan or other
obligation hereunder as the owner thereof for all purposes of this Agreement and
the other Loan Documents, notwithstanding any notice to the contrary. Any
assignment of any Loan or other obligation hereunder not evidenced by a Note
shall be effective only upon appropriate entries with respect thereto being made
in the Register. The Register shall be available for inspection by the Borrower
or any Lender at any reasonable time and from time to time upon reasonable prior
notice.

<PAGE>   80
                                                                              75

                  (e) Upon its receipt of an Assignment and Acceptance executed
by an assigning Lender and an Assignee (and, in the case of an Assignee that is
not then a Lender or an affiliate thereof, by the Borrower and the Agent)
together with payment by such Lender or Assignee to the Agent of a registration
and processing fee of $2,500 the Agent shall (i) promptly accept such Assignment
and Acceptance and (ii) on the effective date determined pursuant thereto record
the information contained therein in the Register and give notice of such
acceptance and recordation to the Lenders and the Borrower.

                  (f) The Borrower authorizes each Lender to disclose to any
Participant or Assignee that agrees to be bound by the terms and conditions of
subsection 9.15 (each, a "TRANSFEREE") and any prospective Transferee any and
all financial information in such Lender's possession concerning the Borrower
and its Affiliates which has been delivered to such Lender by or on behalf of
the Borrower pursuant to this Agreement or which has been delivered to such
Lender by or on behalf of the Borrower in connection with such Lender's credit
evaluation of the Borrower and its Affiliates prior to becoming a party to this
Agreement.

                  (g) For avoidance of doubt, the parties to this Agreement
acknowledge that the provisions of this subsection concerning assignments of
Loans and Notes relate only to absolute assignments and that such provisions do
not prohibit assignments creating security interests, including, without
limitation, any pledge or assignment by a Lender of any Loan or Note to any
Federal Reserve Bank in accordance with applicable law.

                  9.7 ADJUSTMENTS; SET-OFF. (a) If any Lender (a "BENEFITTED
LENDER") shall at any time receive any payment of all or part of its Loans, or
interest thereon, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of
the nature referred to in paragraphs (g), (h) or (i) of Section 7, or
otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of such other Lender's Loans,
or interest thereon, such benefitted Lender shall purchase for cash from the
other Lenders a participating interest in such portion of each such other
Lender's Loan, or shall provide such other Lenders with the benefits of any such
collateral, or the proceeds thereof, as shall be necessary to cause such
benefitted Lender to share the excess payment or benefits of such collateral or
proceeds ratably with each of the Lenders; PROVIDED, HOWEVER, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

                  (b) In addition to any rights and remedies of the Lenders
PROVIDED by law, each Lender shall have the right, without prior notice to the
Borrower, any such notice being expressly waived by the Borrower to the extent
permitted by applicable law, upon any amount becoming due and payable by the
Borrower hereunder (whether at the stated maturity, by acceleration or
otherwise) to set-off and appropriate and apply against such amount any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Lender or any branch or

<PAGE>   81
                                                                              76

agency thereof to or for the credit or the account of the Borrower. Each Lender
agrees promptly to notify the Borrower and the Agent after any such set-off and
application made by such Lender, PROVIDED that the failure to give such notice
shall not affect the validity of such set-off and application.

                  9.8 COUNTERPARTS; EFFECTIVENESS. This Agreement may be
executed by one or more of the parties to this Agreement on any number of
separate counterparts (including by facsimile transmission), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. This Agreement shall become effective when counterparts hereof shall
have been executed by each of the parties hereto. A set of the copies of this
Agreement signed by all the parties shall be lodged with the Borrower and the
Agent.

                  9.9 SEVERABILITY. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                  9.10 INTEGRATION. This Agreement and the other Loan Documents
represent the agreement of the Borrower, the Agent and the Lenders with respect
to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Agent or any Lender relative to subject
matter hereof not expressly set forth or referred to herein or in the other Loan
Documents.

                  9.11 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                  9.12 SUBMISSION TO JURISDICTION; WAIVERS. The Borrower hereby
irrevocably and unconditionally:

                  (a) submits for itself and its property in any legal action or
         proceeding relating to this Agreement and the other Loan Documents to
         which it is a party, or for recognition and enforcement of any
         judgement in respect thereof, to the non-exclusive general jurisdiction
         of the Courts of the State of New York, the courts of the United States
         of America for the Southern District of New York, and appellate courts
         from any thereof;

                  (b) consents that any such action or proceeding may be brought
         in such courts and waives any objection that it may now or hereafter
         have to the venue of any such action or proceeding in any such court or
         that such action or proceeding was brought in an inconvenient court and
         agrees not to plead or claim the same;

                  (c) agrees that service of process in any such action or
         proceeding may be effected by mailing a copy thereof by registered or
         certified mail (or any substantially similar form

<PAGE>   82
                                                                              77

         of mail), postage prepaid, to the Borrower at its address set forth in
         subsection 9.2 or at such other address of which the Agent shall have
         been notified pursuant thereto;

                  (d) agrees that nothing herein shall affect the right to
         effect service of process in any other manner permitted by law or shall
         limit the right to sue in any other jurisdiction; and

                  (e) waives, to the maximum extent not prohibited by law, any
         right it may have to claim or recover in any legal action or proceeding
         referred to in this subsection any special, exemplary, punitive or
         consequential damages.

                  9.13 ACKNOWLEDGEMENTS. The Borrower hereby acknowledges that:

                  (a) it has been advised by counsel in the negotiation,
         execution and delivery of this Agreement and the other Loan Documents;

<PAGE>   83
                                                                              78

                  (b) neither the Agent nor any Lender has any fiduciary
         relationship with or duty to the Borrower arising out of or in
         connection with this Agreement or any of the other Loan Documents, and
         the relationship between the Agent and the Lenders, on one hand, and
         the Borrower, on the other hand, in connection herewith or therewith is
         solely that of debtor and creditor; and

                  (c) no joint venture is created hereby or by the other Loan
         Documents or otherwise exists by virtue of the transactions
         contemplated hereby among the Lenders or among the Borrower and the
         Lenders.

                  9.14 WAIVERS OF JURY TRIAL. THE BORROWER, THE AGENT AND THE
LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND
FOR ANY COUNTERCLAIM THEREIN.

                  9.15 CONFIDENTIALITY. Each Lender agrees to keep confidential
all non-public information provided to it by the Borrower pursuant to this
Agreement that is designated by the Borrower in writing as confidential;
provided that nothing herein shall prevent any Lender from disclosing any such
information (i) to the Agent or any other Lender, (ii) to any Transferee, (iii)
to its employees, directors, agents, attorneys, accountants and other
professional advisors, (iv) upon the request or demand of any Governmental
Authority having jurisdiction over such Lender, (v) in response to any order of
any court or other Governmental Authority or as may otherwise be required
pursuant to any Requirement of Law, (vi) which has been publicly disclosed other
than in breach of this Agreement, (vii) in connection with the exercise of any
remedy hereunder or (viii) to any direct or indirect contractual counterparty in
swap agreements or such contractual counterparty's professional advisor (so long
as such contractual counterparty or professional advisor to such contractual
counterparty agrees to be bound by the provisions of this Section 9.15).

                  9.16 EFFECT OF AMENDMENT AND RESTATEMENT OF THE EXISTING
CREDIT AGREEMENT. On the Closing Date, the Existing Credit Agreement shall be
amended, restated and superseded in its entirety. The parties hereto acknowledge
and agree that (a) this Agreement and the other Loan Documents executed and
delivered in connection herewith do not constitute a novation, payment and
reborrowing, or termination of the "Obligations" (as defined in the Existing
Credit Agreement) under the Existing Credit Agreement as in effect prior to the
Closing Date; (b) such "Obligations" are in all respects continuing (as amended
and restated hereby) with only the terms thereof being modified as provided in
this Agreement; and (c) the Liens and security interests as granted under the
Security Documents securing payment of such "Obligations" are in all respects
continuing and in full force and effect and secure the payment of the
Obligations (as defined in this Agreement).

                  9.17 REDEMPTION OF SENIOR SUBORDINATED NOTES. Union Bank of
California, N.A. ("UBOC") shall communicate to the Borrower prior to April 1,
1999 the terms and conditions, if any, on which UBOC would assist the Borrower
in the refinancing of the Senior Subordinated Notes (which may occur on or about
October 1, 1999). The Borrower shall provide UBOC with

<PAGE>   84
                                                                              79

any information regarding the Borrower and its Subsidiaries reasonably requested
by UBOC with regard to such communication. Neither UBOC nor any other party
shall have any obligations or liabilities under this subsection 9.17 (nor shall
the Borrower, its Subsidiaries or any other party have any rights or remedies
under this subsection 9.17) and no provision of this subsection 9.17 nor any
other provision of this Agreement shall be deemed to constitute a commitment by
any party to provide or assist in the refinancing of the Senior Subordinated
Notes or any other financing (except for the Commitments on the terms and
conditions set forth herein).

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first above written.

                                  PAXSON COMMUNICATIONS
                                   CORPORATION

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

                                  UNION BANK OF CALIFORNIA, N.A.,
                                    as the Agent and as a Lender

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

                                  THE ING CAPITAL SENIOR SECURED HIGH
                                     INCOME FUND, L.P.

                                  By: ING Capital Advisors Inc.,
                                           as Investment Advisor

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

                                  ARCHIMEDES FUNDING LLC

                                  By: ING Capital Advisors Inc.,
                                  as Collateral Manager

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

<PAGE>   85
                                                                              80

KZH-ING 2 CORPORATION

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

PROTECTIVE ASSET MANAGEMENT, L.L.C.

By:                            , its manager
   ---------------------------

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

CITY NATIONAL BANK

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

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