Date: September 5, 1995 Memo To: D. Geoff Armstrong From: R. Steven Hicks Re: Contractual Deferred Compensation This letter shall serve as an addendum to your employment agreement dated April 1, 1995 as approved by the Compensation Committee. For your past efforts and as an incentive to enter into a new employment agreement SFX Broadcasting Inc. will pay you immediately, pursuant to Section 3 paragraph B of the Employment Agreement a lump sum of $150,000 which will be deemed earned per the following schedule: 25.00% .... December 31, 1995 25.00% .... April 1, 1996 25.00% .... April 1, 1997 25.00% .... April 1, 1998 It is understood that if you are terminated for cause under your Employment Agreement any unearned amounts will be deducted from any monies owed to you by the Company. /s/ Robert F.X. Sillerman - ------------------------ Robert F.X. Sillerman Chairman /s/ R. Steven Hicks -------------------------- R. Steven Hicks President /s/ D. Geoff Armstrong -------------------------- D. Geoff Armstrong Employee