
<PAGE>
 
                                                                    EXHIBIT 2.20



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

                            TIME BROKERAGE AGREEMENT

                                 BY AND BETWEEN

              EVERGREEN MEDIA CORPORATION OF DETROIT, AS LICENSEE,

                                      AND

                    KIDSTAR INTERACTIVE MEDIA INCORPORATED,
                                 AS TIME BROKER



                           DATED AS OF JULY 10, 1996


                      ====================================
<PAGE>
 
                               TABLE OF CONTENTS
                               -----------------

                                                                    PAGE
                                                                    ----

ARTICLE 1   SALE OF TIME...........................................   1

       1.1  Broadcast of Programming...............................   1
       1.2  Payment................................................   1
       1.3  Holding Payments.......................................   2
       1.4  Term...................................................   2

ARTICLE 2   PROGRAMMING AND OPERATING STANDARDS AND PRACTICES......   2

       2.1  Compliance with Standards..............................   2
       2.2  Political Broadcasts...................................   2
       2.3  Handling of Communications.............................   2
       2.4  Preemption.............................................   3
       2.5  Rights in Programs.....................................   3
       2.6  "Payola" and "Plugola".................................   3
       2.7  Advertising and Programming............................   4
       2.8  Advertising Inventory..................................   4
       2.9  Compliance with Laws...................................   4
       2.10 Certifications.........................................   4

ARTICLE 3   RESPONSIBILITY FOR EMPLOYEES AND EXPENSES..............   4

       3.1  Time Broker's Employees................................   4
       3.2  Licensee's Employees...................................   4
       3.3  Time Broker's Expenses.................................   5
       3.4  Operating Expenses.....................................   5

ARTICLE 4   PAYMENT OF STATION OBLIGATIONS.........................   6

ARTICLE 5   SPORT PROGRAM CONTRACTS................................   6

ARTICLE 6   OPERATION OF STATION...................................   6

ARTICLE 7   OPTION TO PURCHASE; RIGHT OF FIRST REFUSAL.............   7

ARTICLE 8   INDEMNIFICATION........................................   7

       8.1  Indemnification Rights.................................   7
       8.2  Procedures.............................................   8

                                       i
<PAGE>
 
                                                                    PAGE
                                                                    ----

ARTICLE 9   DEFAULT................................................   9

       9.1  Events of Default......................................   9
       9.2  Cure Periods...........................................   9

ARTICLE 10  TERMINATION............................................   9

      10.1  Expiration of Term.....................................   9
      10.2  Termination Upon Default...............................   9
      10.3  Change in FCC Rules....................................   9
      10.4  Consummation of Option Exercise........................  10
      10.5  Termination Pursuant to Section 3.4....................  10
      10.6  Certain Matters Upon Termination.......................  10

ARTICLE 11  REMEDIES...............................................  11

ARTICLE 12  CERTAIN REPRESENTATIONS AND WARRANTIES OF THE PARTIES..  11

      12.1  Representations and Warranties of Time Broker..........  11
      12.2  Organization...........................................  11
      12.3  Authorization; Enforceability..........................  11
      12.4  No Consent.............................................  11
      12.5  No Breach..............................................  11
      12.6  Actions and Proceedings................................  12
      12.7  Representations, Warranties and Covenants of Licensee..  12
      12.8  Corporate Organization.................................  12
      12.9  Authorization; Enforceability..........................  12
      12.10 No Consent.............................................  12
      12.11 No Breach..............................................  12
      12.12 Actions and Proceedings................................  12
      12.13 Maintenance of Current Coverage........................  13
      12.14 Insurance..............................................  13

ARTICLE 13  MISCELLANEOUS..........................................  13

      13.1  Modification and Waiver................................  13
      13.2  No Waiver; Remedies Cumulative.........................  13
      13.3  Construction...........................................  13
      13.4  Headings...............................................  14
      13.5  Successors and Assigns; Exclusive Dealings.............  14
      13.6  Force Majeure..........................................  14
      13.7  Broker.................................................  14
      13.8  Counterpart Signatures.................................  14


                                       ii
<PAGE>
 
                                                                    PAGE
                                                                    ----
      13.9  Notices................................................  14
      13.10 Entire Agreement.......................................  15
      13.11 Severability...........................................  15
      13.12 No Joint Venture.......................................  16
      13.13 Damage to Station......................................  16
      13.14 Noninterference........................................  16
      13.15 Regulatory Changes.....................................  16
      13.16 Station Revenue........................................  16
      13.17 Confidentiality........................................  16

                                      iii
<PAGE>
 
                        TABLE OF SCHEDULES AND EXHIBITS
                        -------------------------------


     Schedule 1.1        Programming

     Schedule 12.12      Actions and Proceedings

     Schedule 13.18      Non-Competition Covenant Exceptions
<PAGE>
 
                            TIME BROKERAGE AGREEMENT


          This Time Brokerage Agreement (this "Agreement") is made as of the
July 10, 1996, by and between EVERGREEN MEDIA CORPORATION OF DETROIT, a Delaware
corporation, with an address at 433 E. Las Colinas Blvd., Suite 1130, Irving, TX
75039 ("Evergreen"), and KIDSTAR INTERACTIVE MEDIA, INC., a _________
corporation, with an address at 1334 First Ave., Suite 150, Seattle, WA 98101
("Time Broker").

                                   BACKGROUND

          WKQI\WDOZ\WNIC License Corp. ("Licensee"), the licensee of the license
of AM Broadcast Station WDOZ-AM, 1310 KHz, Detroit, Michigan, (the "Station"),
is a wholly owned subsidiary of Evergreen.  Time Broker and Evergreen, on behalf
of Licensee, desire to enter into an agreement providing for the sale of
substantially all of the broadcast time of the Station to Time Broker, subject
to the rules and policies of the Federal Communications Commission (the "FCC").
In consideration of the foregoing and of the mutual promises, covenants, and
conditions set forth below, the parties agree as follows:

                                   ARTICLE 1

                                  SALE OF TIME

          1.1  Broadcast of Programming.  Effective as of August 1, 1996 (the
"Commencement Date"), Licensee shall broadcast on the Station, or cause to be
broadcast on the Station, programs which are presented to it by Time Broker as
described in greater detail on Schedule 1.1 (the "Programming").  Time Broker
shall deliver at its own cost the Programming to Licensee's transmitter sites.

          1.2  Payment.  Time Broker shall pay Licensee for broadcast of the
Programming the monthly rate of $30,000 (the "Monthly Payment") for the first
year, with the rate increasing 10% on each anniversary of the Commencement Date.
In the event that the Commencement Date occurs on a day other than the first day
of a month, the initial monthly payment made by Time Broker shall be an amount
equal to the Monthly Payment as determined above multiplied by a ratio, the
numerator of which is the number of days between the Commencement Date and the
end of the month in which the Commencement Date occurs and the denominator of
which is the number of days in the month in which the Commencement Date occurs;
and in the event the termination date of the Agreement occurs other than on the
last day of a month, the Monthly Payment for the month in which such termination
occurs shall be similarly prorated.  The initial monthly payment shall be due
upon execution hereof.  All other Monthly Payments shall be paid by wire
transfer of immediately-available funds on the earlier of (a) the first business
day of the month or (b) in the event the first day of the month is not a
business day, the last business day of the preceding month.
<PAGE>
 
          1.3  Holding Payments.  Time Broker shall pay Licensee One Hundred
Thousand Dollars ($100,000) upon the execution of this Agreement (the "Holding
Payments"). The Holding Payments shall be applied to the purchase price due upon
the consummation of a purchase of the Station by Time Broker pursuant to Article
7 of this Agreement.

          1.4  Term.  Unless terminated earlier in accordance with the express
provisions hereof, this Agreement shall continue for a term of five years from
August 1, 1996.

                                   ARTICLE 2

               PROGRAMMING AND OPERATING STANDARDS AND PRACTICES.

          2.1  Compliance with Standards.  All Programming delivered by Time
Broker and all programming supplied by Licensee during the term of this
Agreement shall be in accordance with applicable statutes and FCC requirements.
Licensee reserves the right to refuse to broadcast any Programming containing
matter which the Licensee reasonably believes is not in the public interest or
may be violative of any right of any third party, or which may constitute a
"personal attack" as that term is and has been defined by the FCC or which
Licensee reasonably determines is, or in the reasonable opinion of Licensee may
be deemed to be, indecent or obscene by the FCC or any court or other regulatory
body with authority over Licensee or the Station.  If Time Broker does not
adhere to the foregoing requirements, Licensee may suspend or cancel any
specific program not so in compliance, without any reduction or offset in the
payments due Licensee under this Agreement.

          2.2  Political Broadcasts.  Time Broker shall maintain and deliver to
Licensee all records and information required by the FCC to be placed in the
public inspection files of the Station pertaining to the broadcast of political
programming and advertisements, in accordance with the provisions of Sections
73.1940 and 73.3526 of the FCC's rules, and agrees to broadcast sponsored
programming addressing political issues or controversial subjects of public
importance, in accordance with the provisions of Section 73.1212 of the FCC's
rules.  Time Broker shall consult with Licensee and adhere to all applicable
statutes and the rules, regulations and policies of the FCC, as announced from
time to time, with respect to the carriage of political advertisements and
programming (including, without limitation, the rights of candidates and, as
appropriate, others to "equal opportunities" and the carriage of contrasting
points of view as mandated by any "fairness" rule with respect to such "issue-
oriented" advertising or programming as may be broadcast) and the charges
permitted therefor.  Time Broker shall provide to Licensee such documentation
relating to such programming as Licensee shall reasonably request.

          2.3  Handling of Communications.  Time Broker shall cooperate with
Licensee in promptly responding to all mail, cables, telegrams or telephone
calls directed to the Station in connection with the Programming provided by
Time Broker or any other matter relevant to its responsibilities hereunder.
Time Broker shall provide copies of all such correspondence to Licensee.  Time
Broker shall promptly advise Licensee of any public or FCC complaint or inquiry
known to Time Broker concerning such Programming, and shall provide Licensee
with copies of any letters to Time Broker from the public, including complaints
concerning such Programming.

                                       2
<PAGE>
 
Notwithstanding the foregoing, Licensee shall handle all matters or inquiries
relating to FCC complaints and any other matters required to be handled by
Licensee under the rules and regulations of the FCC.

          2.4  Preemption.  Licensee may, from time to time, preempt portions of
the Programming to broadcast emergency information or programs it deems would
better serve the public interest, and may refuse to broadcast any program or
announcement of Time Broker should Licensee deem such program or announcement to
be contrary to the public interest as set forth in Section 2.1.  Time Broker
shall be notified at least one week in advance of any preemption of any of the
Programming for the purpose of broadcasting programs Licensee deems necessary to
serve the public interest unless such advance notice is impossible or
impractical, upon which Licensee shall notify Time Broker promptly upon making
such determination.  In the event of any such preemption, Time Broker shall be
entitled to deduct from the Monthly Payment, as described in Section 1.2, for
the month in which such preemption occurs an amount equal to (i) the percentage
of the total programming hours per month brokered to Time Broker which were
preempted during such month times (ii) the Monthly Payment.  Licensee represents
and covenants that preemption shall only occur to the extent Licensee deems
necessary to carry out its obligations as an FCC licensee, and expressly agrees
that its right of preemption shall not be exercised in an arbitrary manner or
for the commercial advantage of Licensee or others.  In the event that Licensee
preempts more than three (3) hours in any calendar day, or more than seven (7)
hours over any seven (7) consecutive calendar days, or more than thirty (30)
hours over any consecutive thirty (30) day period, then Time Broker shall be
entitled at its sole option to terminate this Agreement without further
obligation to Licensee except for payments (if any) already due to Licensee and
to pursue all other legal remedies available to it.

          2.5  Rights in Programs.  All right, title and interest in and to the
Programming, and the right to authorize the use of the Programming in any manner
and in any media whatsoever, shall be and remain vested at all times solely in
Time Broker, except for sports programming provided by Licensee as provided in
Schedule 1.1.

          2.6  "Payola" and "Plugola".  Time Broker agrees that it will take
steps, including the continuation of Licensee's system for periodic execution of
affidavits, reasonably designed to assure that neither it nor its employees or
agents will accept any gift, gratuity or other consideration, directly or
indirectly, from any person or company for the playing of records, the
presentation of any programming or the broadcast of any commercial announcement
over the Station without such broadcast being announced as sponsored.  It is
further understood and agreed that no commercial message, plugs, or undue
reference shall be made in programming presented over the Station to any
business venture, profit-making activity or other interest (other than non-
commercial announcements for bona fide charities, church activities or other
public service activities) without such broadcast being announced as sponsored.

          2.7  Advertising and Programming.  Beginning with the Commencement
Date, Time Broker shall be entitled to all revenue from the sale of advertising
or program time on the Station.  Licensee shall remain entitled to all revenue
from the sale of advertising or program time on the Station for all days prior
to the Commencement Date.  Except as otherwise provided

                                       3
<PAGE>
 
herein, Time Broker does not assume any obligation of Licensee under any
contract or advertising arrangement entered into by Licensee on or after the
Commencement Date.  Time Broker will advise Licensee of its lowest unit charge
for political advertising, and Licensee shall not do anything that would lower
Time Broker's lowest unit charge.

          2.8  Advertising Inventory.  Time Broker will make available to
Licensee five percent (5%) of Time Broker's Run of Schedule commercial inventory
(in 60 second segments) for Licensee's cross promotional use with Licensee's
advertisers and clients, and Licensee will make available to Time Broker
reciprocal cross-promotional inventory of equal value on its FM station WNIC-FM.
Time Broker has the right to reject use of this inventory by Licensee if Time
Broker reasonably believes that the use would be objectionable to its target
audience or target advertisers, and Licensee has the right to reject use of this
inventory by Time Broker if Licensee reasonably believes that the use would be
objectionable to its target audience or target advertisers.

          2.9  Compliance with Laws.  At all times during the term of this
Agreement, Time Broker and Licensee shall comply in all material respects with
all applicable federal, state and local laws, rules and regulations, including
the use of FCC-licensed operators where such are required.

          2.10 Certifications. Pursuant to Section 73.3555(a)(2)(ii) of the
FCC's rules, Licensee certifies that it maintains ultimate control over the
Station's facilities, including specifically control over station finances,
personnel and programming, and Time Broker certifies that this Agreement
complies with the provisions of Sections 73.3555(a)(1) and (e)(1) of the FCC's
rules.

                                   ARTICLE 3

                   RESPONSIBILITY FOR EMPLOYEES AND EXPENSES

          3.1  Time Broker's Employees.  Time Broker shall employ and be
responsible for the payment of salaries, taxes, insurance and all other costs
related to all Time Broker personnel used in the production of the Programming.

          3.2  Licensee's Employees.

               (a) Licensee shall employ and be responsible for the payment of
salaries, taxes, insurance and all other costs related to the personnel
necessary to fulfill its obligations as Licensee and to transmit the
Programming.

               (b) Licensee will not incur any liability on account of Time
Broker's employees in connection with the transactions contemplated by this
Agreement including, without limitation, any liability on account of
unemployment insurance contributions, termination payments, accrued sick leave
or accrued vacation.

                                       4
<PAGE>
 
               (c) Time Broker shall have no authority over and shall not
supervise persons in the employ of Licensee after the Commencement Date.

          3.3  Time Broker's Expenses.  Time Broker shall pay for all costs
associated with the production and delivery of the Programming, including but
not limited to, all ASCAP, BMI, SESAC and other copyright fees.  It is expressly
agreed and understood that Time Broker will produce the Programming entirely
within its own studio facilities, will rent off-premises space for its sales and
marketing team, and will be responsible for payment of all fees and expenses
relating to the operation and maintenance of such studio facilities and off-
premises space. Licensee shall be responsible for all ASCAP, BMI, SESAC and
other copyright fees attributable to Licensee's programming on the station.

          3.4  Operating Expenses.  Licensee shall be responsible for the
payment of all fees and expenses relating to operation and maintenance of the
Station as necessary for Licensee to maintain the licensed transmitting
capability of the Station and fulfill its obligations as an FCC licensee,
including but not limited to salaries, commissions, insurance on the Station's
equipment, insurance and benefits for employees of Licensee, federal, state and
local taxes, and rents and utilities at the Station's transmitter sites.  Time
Broker shall reimburse Licensee for its non-capital ordinary reasonable and
customary expenses (excluding salary, benefits and similar expenses for
Licensee's employees, rent and utilities at the transmitter sites for the
Station, and federal, state and local income taxes) incurred in operating the
Station (the "Operating Expenses"), including but not limited to, maintenance of
the tower and transmitter equipment, electrical maintenance, security,
insurance, insurance deductibles on claims, federal, state and local taxes (but
not Licensee's income taxes), and sales tax on the payment due under this
Agreement (if any). Licensee shall bill Time Broker for such expenses as they
are incurred by delivery of a statement in reasonable detail with back-up
invoices, payment for which shall be due within thirty (30) days of such
billing.  In addition, Time Broker shall pay Licensee a monthly facility fee of
$ 1,100 in the same manner as provided for payment of the Monthly Payment (the
"Facility Fee").  In the event the annual sum of the Operating Expenses and the
Facility Fee (together the "Expenses") exceeds $65,000, Time Broker may elect
not to reimburse Licensee for the amount of the Expenses that exceeds $65,000
per year (the "Excess Expenses"), provided however that if Time Broker makes
such election, Licensee shall have the option to terminate this Agreement.  If
Time Broker reimburses Licensee for the Excess Expenses, the amount of the
Excess Expenses that Time Broker pays to Licensee shall be applied against the
purchase price if Time Broker purchases the Station pursuant to Article 7 of
this Agreement.

                                       5
<PAGE>
 
                                   ARTICLE 4

                         PAYMENT OF STATION OBLIGATIONS

          Licensee shall promptly pay when due and satisfy all obligations owing
to, or reach a settlement with, all third parties with respect to the operation
of the Station prior to the Commencement Date, to the extent required to grant
Time Broker the full enjoyment of its rights hereunder.

                                   ARTICLE 5

                            SPORT PROGRAM CONTRACTS

          Notwithstanding any provision of this Agreement to the contrary, Time
Broker agrees to carry and include in the Programming Licensee's sport contracts
which expire on December 31, 1996 (the "Sport Program Contracts").  Licensee
retains its right to receive all revenue from the commercials broadcast during
Programming presented pursuant to the Sport Program Contracts.  Time Broker
shall not be liable to pay Licensee for the portion of the Operating Expenses
that is attributable to the broadcast of the Sport Program Contracts (the "Sport
Program Operating Expenses").  For each thirty-day period, the Sport Program
Operating Expenses shall equal the amount of Operating Expenses for such thirty-
day period multiplied by a fraction the numerator of which equals (i) the number
of hours, or fractions thereof, that Time Broker broadcasts Programming pursuant
to the Sport Program Contracts for such thirty-day period and the denominator of
which equals (ii) the number of hours that Programming is broadcast over the
Station for such thirty-day period.  Licensee shall provide to Time Broker a
sport programming schedule that contains the time and dates of programming that
must be carried pursuant to the Sport Program Contracts thirty (30) days prior
to the time such programming must be carried and will provide Time Broker with
seven (7) days notice of any scheduling changes.  Time Broker has the right to
reject sponsor involvement if the specific sponsor is inappropriate (within
reasonable limits) for placement in children's format.

                                   ARTICLE 6

                              OPERATION OF STATION

          Notwithstanding any provision of this Agreement to the contrary,
Licensee shall retain full authority and power with respect to the operation of
the Station during the term of this Agreement.  The parties agree and
acknowledge that Licensee's continued control of the Station is an essential
element of the continuing validity and legality of this Agreement.  Accordingly,
Licensee shall employ the General Manager of the Station and such other
personnel (not less than one) as Licensee determines may be necessary to fulfill
its obligations as a licensee under the Communications Act of 1934, as amended
(the "Communications Act").  Licensee shall retain full authority and control
over the policies, programming and operations of the Station, including, without
limitation, the decision whether to preempt Programming in accordance with
Section 2.4

                                       6
<PAGE>
 
hereof.  Licensee shall have full responsibility to effectuate compliance with
the Communications Act and with FCC rules, regulations and policies.

                                 ARTICLE 7

                   OPTION TO PURCHASE; RIGHT OF FIRST REFUSAL

          Time Broker shall have the option to purchase the Station as set forth
in this Article (the "Option").  The Option may be exercised by written notice
given to Licensee at any time during the thirty-sixth (36th), forty-eighth
(48th) or sixtieth (60th) months of the term of this Agreement provided this
Agreement is in effect and Time Broker is not in material breach of its
obligations under this Agreement at the time of such notice.  If Time Broker
notifies Licensee that it desires to exercise the Option, the parties shall
negotiate in good faith for up to thirty (30) days to determine a price and
other terms for the sale of the Station by Licensee to Time Broker.  If after
such negotiations, the parties are unable to reach an agreement, Time Broker
shall have a right of first refusal to purchase the Station as follows (the
"Right of First Refusal"): If Licensee receives a bona fide offer to purchase
the Station from a third party or if Licensee makes a bona fide offer to sell
the Station to a third party, prior to Licensee entering into an agreement to
sell the Station (or after entering into such an agreement which must be
contingent upon Time Broker's election not to exercise its rights hereunder),
Licensee shall submit the terms of the bona fide offer to Time Broker.  During
the life of Time Broker's Right of First Refusal, any contract(s) or written
agreement(s) to sell all or substantially all of the assets of, or equity in,
the Station and to which Licensee, but not Time Broker, is a party, shall
expressly recognize and be subject to Time Broker's Right of First Refusal.  If
Time Broker does not advise Licensee in writing that it will purchase the
Station upon the terms of such offer within ten (10) days of receipt of such
offer, Licensee shall have thirty (30) days for good faith negotiations with
third parties to enter into an agreement to sell the Station upon terms
substantially similar to those presented to Time Broker.  If Licensee, in good
faith, does not sell the Station upon such terms within such time period, the
Right of First Refusal shall remain in effect.  Time Broker's Right of First
Refusal shall terminate upon the termination of this Agreement.

                                  ARTICLE 8

                                INDEMNIFICATION

          8.1  Indemnification Rights.  Each party will indemnify and hold
harmless the other party, and the directors, officers, partners, employees,
agents and affiliates of such other party, from and against any and all
liability, including without limitation reasonable attorneys' fees arising out
of or incident to (i) any breach by such party of a representation, warranty or
covenant made herein, (ii) the programming produced or furnished by such party
hereunder, or (iii) the conduct of such party, its employees, contractors or
agents (including negligence) in performing its or their obligations hereunder.
Without limiting the generality of the foregoing, each party will indemnify and
hold harmless the other party, and the directors, officers, partners, employees,
agents and affiliates of such other party, from and against any and all
liability for libel, slander, infringement of trademarks, trade names, or
program titles, violation of rights of privacy, and

                                       7
<PAGE>
 
infringement of copyrights and proprietary rights resulting from the programming
produced or furnished by it hereunder.  The parties' indemnification obligations
hereunder shall survive any termination or expiration of this Agreement for a
period of two years; provided, however, that if this Agreement terminates as a
result of the Section 10.4 of this Agreement, the indemnification rights in this
Section shall terminate.

          8.2  Procedures.  The party seeking indemnification under this Section
("Indemnitee") shall give the party from whom it seeks indemnification
("Indemnitor") prompt notice, in accordance with Section 13.9, of the assertion
of any such claim; provided, however, that the failure to give notice of a claim
within a reasonable time shall only relieve the Indemnitor of liability to the
extent it is materially prejudiced thereby.  Promptly after receipt of written
notice, as provided herein, of a claim by a person or entity not a party to this
Agreement, the Indemnitor shall assume the defense of such claim; provided,
however, that (i) if the Indemnitor fails, within a reasonable time after
receipt of written notice of such claim, to assume the defense, compromise, and
settlement of such claim on behalf of and for the account and risk of the
Indemnitor, subject to the right of the Indemnitor (upon notifying the
Indemnitee of its election to do so) to assume the defense of such claim at any
time prior to the settlement, compromise, judgment, or other final determination
thereof, or if in the reasonable judgment of the Indemnitee, based on the advice
of its counsel, a direct or indirect conflict of interest exists between the
Indemnitee and the Indemnitor, the Indemnitee shall (upon notifying the
Indemnitor of its election to do so) have the right to undertake the defense,
compromise, and settlement of such claim on behalf of and for the account and
risk of the Indemnitor (it being understood and agreed that the Indemnitor shall
not be entitled to assume the defense of such claim), and (ii) if the Indemnitee
in its sole discretion so elects, it shall (upon notifying the Indemnitor of its
election to do so) be entitled to employ separate counsel and to participate in
the defense of such claim, but the fees and expenses of counsel so employed
shall (except as contemplated by clause (i) above) be borne solely by the
Indemnitee.  The Indemnitor shall not settle or compromise (x) any claim or
consent to the entry of any judgment that does not include as an unconditional
term thereof the grant by the claimant or plaintiff to each Indemnitee of a
release from any and all liability in respect thereof, or (y) any claim in any
manner, or consent to the entry of any judgment, that could reasonably be
expected to have a material adverse effect on the Indemnitee.  If upon
presentation of a claim for indemnity hereunder, the Indemnitor does not agree
that all, or part, of such claim is subject to the indemnification obligations
imposed upon it pursuant to this Agreement, it shall promptly so notify the
Indemnitee.  Thereupon, the parties shall attempt to resolve their dispute,
including where appropriate, reaching an agreement as to that portion of the
claim, if any, which both concede is subject to indemnification.  To the extent
that the parties are unable to reach some compromise, either party may
unilaterally submit the matter for determination by a court of competent
jurisdiction.

                                       8
<PAGE>
 
                                   ARTICLE 9

                                    DEFAULT

          9.1  Events of Default.  The following, after the expiration of the
applicable cure periods specified in the next subsection, shall constitute
Events of Default under the Agreement:

               (a) Non-Payment.  Time Broker's failure to timely pay the
consideration provided for in Section 1.2;

               (b) Default in Covenants. Time Broker's or Licensee's default in
the observance or performance of any material covenant, condition or agreement
contained herein;

               (c) Breach of Representation. Time Broker's or Licensee's
material breach of any representation or warranty made by it herein, or in any
certificate or document furnished pursuant to the provisions hereof, which shall
prove to have been false or misleading in any material respect as of the time
made or furnished; or

          9.2  Cure Periods.  An Event of Default shall not be deemed to have
occurred until thirty (30) days (or in the event of a payment default, ten (10)
days) after the non-defaulting party has provided the defaulting party with
written notice specifying the event or events that if not cured would constitute
an Event of Default, and such an event of default has not been cured. If a
payment default has already occurred twice during any 12 month period, then an
Event of Default shall be deemed to have occurred, in the event of a further
payment default, upon receipt of the written notice described above.

                                   ARTICLE 10

                                  TERMINATION

          10.1  Expiration of Term.  This Agreement shall terminate upon
the expiration of the term hereof as set forth in Section 1.4.

          10.2  Termination Upon Default.  In addition to other remedies
available at law or equity, this Agreement may be terminated as set forth below
by either Licensee or Time Broker by written notice to the other if the party
seeking to terminate is not then in material default or breach hereof, upon the
occurrence of an uncured Event of Default.

          10.3  Change in FCC Rules.  This Agreement may be terminated by
Licensee upon written notice to Time Broker if, upon any change in FCC rules,
policies or precedent that would cause this Agreement to be in violation thereof
and such change is final, in effect and has not been stayed, the parties are
unable, after negotiating in good faith for at least thirty (30) days, to modify
this Agreement to comply with the change in FCC rules, policies or precedent.

                                       9
<PAGE>
 
          10.4  Consummation of Option Exercise.  If then still in effect,
this Agreement shall terminate upon the consummation of the acquisition of the
Station by Time Broker pursuant to Section 7.1 of this Agreement.

          10.5  Termination Pursuant to Section 3.4.  This Agreement may be
terminated by Licensee upon written notice to Time Broker if Time Broker elects
not to reimburse Licensee for any Excess Expenses.

          10.6  Certain Matters Upon Termination.

                (a) Upon any termination or expiration of this Agreement,
Licensee shall be under no further obligation to make available to Time Broker
any further broadcast time or broadcast transmission facilities and Time Broker
shall be responsible for all debts and obligations of Time Broker resulting from
the use of air time and transmission facilities prior to the termination date
including without limitation accounts payable and net trade balances to the
extent the value (at current rates for time on the Station as of the date of
such termination or expiration) of unfilled obligations of the Time Broker under
any Trade Agreements entered into by Time Broker after the Commencement Date
exceeds in the aggregate the reasonable fair market value of any consideration
yet to be received by Licensee in exchange for the provision of time on the
Station.

                (b) If the termination of this Agreement is other than pursuant
to Section 10.4, Time Broker shall (i) assign to Licensee and Licensee shall
assume the Contracts in effect on the date of such termination or expiration;
(ii) be responsible for only those obligations under the Contracts arising on or
after the Commencement Date and prior to the termination of this Agreement; and
(iii) be responsible for collecting the accounts receivable arising from Time
Broker's operation of the Station after the Commencement Date ("Time Broker's
Receivables"). Licensee shall reimburse Time Broker for sales commissions paid
by Time Broker to Time Broker's employees for sales relating to time sale
contracts to the extent that the revenue from such sales relates to programming
delivered after the termination of this Agreement.

                (c) Notwithstanding anything in Section 8.1 to the contrary, no
expiration or termination of this Agreement shall terminate the obligation of
each party to indemnify the other for claims under the Indemnification Section
hereof or limit or impair any party's rights to receive payments due and owing
hereunder on or before the date of such termination.

                                       10
<PAGE>
 
                                   ARTICLE 11

                                    REMEDIES

          In addition to a party's rights of termination hereunder (and in
addition to any other remedies available to it or provided under law), in the
event of an uncured Event of Default with respect to either party, the other may
seek specific performance of this Agreement, in which case the defaulting party
shall waive the defense in any such suit that the other party has an adequate
remedy at law and interpose no opposition, legal or otherwise, as to the
propriety of specific performance as a remedy hereunder.

                                   ARTICLE 12

             CERTAIN REPRESENTATIONS AND WARRANTIES OF THE PARTIES

          12.1  Representations and Warranties of Time Broker.  Time Broker
hereby represents and warrants to Licensee as follows:

          12.2  Organization.  Time Broker is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and duly qualified to do business in the State of Michigan.

          12.3  Authorization; Enforceability.  This Agreement has been
duly executed and delivered by Time Broker, and is valid, binding and
enforceable against Time Broker in accordance with its terms.  Time Broker has
full right, power, authority and legal capacity to enter into and perform its
obligations under this Agreement and to consummate the transactions contemplated
hereby.  The execution and delivery or performance of this Agreement and the
consummation of the transactions provided for hereby have been duly authorized
by all necessary corporate action on the part of Time Broker, and no corporate
or other proceedings on the part of Time Broker are necessary to authorize the
execution or delivery of this Agreement or the transactions contemplated hereby.

          12.4  No Consent.  No consent of any other party and no consent,
license, approval or authorization of, or exemption by, or filing, restriction
or declaration with, any governmental authority, bureau, agency or regulatory
authority, other than the filing of this Agreement with the FCC, is required in
connection with the execution, delivery or performance of this Agreement by Time
Broker or will effect the validity or performance of this Agreement.

          12.5  No Breach.  Neither the execution or delivery of this
Agreement nor the consummation of the transactions contemplated hereby will
constitute or result in the breach of any term, condition or provision of, or
constitute a default under, or result in the creation of any lien, charge or
encumbrance upon any property or assets of Time Broker pursuant to the articles
of incorporation of Time Broker, its bylaws, any agreement or other instrument
to which Time

                                       11
<PAGE>
 
Broker is a party or by which any part of its property is bound, or violate any
law, regulation, judgment or order binding upon Time Broker.

          12.6  Actions and Proceedings.  No proceeding is pending against
Time Broker or, to the knowledge of Time Broker, threatened before any court or
governmental agency to restrain or prohibit, or to obtain damages, or other
relief in connection with, this Agreement, or the consummation of the
transactions contemplated hereby or thereby or that might adversely affect Time
Broker's performance under this Agreement.

          12.7  Representations, Warranties and Covenants of Licensee.
Licensee hereby represents, warrants and covenants to Time Broker as follows:

          12.8  Corporate Organization.  Licensee is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware, is duly authorized to conduct business in the State of Michigan and
has full power and authority to conduct its business as currently conducted and
proposed to be conducted and to enter into and perform this Agreement.

          12.9  Authorization; Enforceability.  This Agreement has been
duly executed and delivered by Licensee, and is valid, binding and enforceable
against Licensee in accordance with its terms.  Licensee has full right, power,
authority and legal capacity to enter into and perform its obligations under
this Agreement and to consummate the transactions contemplated hereby.  The
execution and delivery of this Agreement and the consummation of the
transactions provided for hereby have been duly authorized by all necessary
corporate action on the part of Licensee, and no other corporate or other
proceedings on the part of Licensee are necessary to authorize the execution or
delivery of this Agreement or the transactions contemplated hereby.

          12.10 No Consent.  No consent, license, approval or authorization
of or exemption by, or filing, restriction or declaration with, any governmental
authority, bureau, agency or regulatory authority, other than the filing of this
Agreement with the FCC, is required in connection with the execution, delivery
or performance of this Agreement or will affect the validity or enforceability
of this Agreement.

          12.11 No Breach. Except to the extent any of the Pre-Commencement Time
Sale Contracts require consent to assignment, neither the execution or delivery
of this Agreement nor the consummation of the transactions contemplated hereby
will constitute or result in the breach of any term, condition or provision of,
or constitute a default under, or result in the creation of any lien, charge or
encumbrance upon any property or assets of Licensee pursuant to the articles of
incorporation of Licensee, its bylaws, any agreement or other instrument to
which Licensee is a party or by which any part of its property is bound, or
violate any law, regulation, judgment or order binding upon Licensee.

          12.12 Actions and Proceedings.  Except as set forth on Schedule
12.12, there is no judgment outstanding and no litigation, claim, investigation
or proceeding pending against Licensee or, to the knowledge of Licensee,
threatened before any court or governmental agency

                                       12
<PAGE>
 
to restrain or prohibit, or to obtain damages or other relief in connection with
this Agreement or the consummation of the transactions contemplated hereby or
that might affect the continued operation of the Station or materially impair
the value of the assets used or useful in operation of the Station (the
"Assets").

          12.13 Maintenance of Current Coverage.  During the term hereof,
Licensee shall take no action to modify the authorizations pursuant to which the
Station operates which would have the effect of reducing the currently
authorized coverage of the Station.

          12.14 Insurance. During the term hereof, Licensee shall maintain
casualty insurance covering the assets used in the operation of the Station upon
such terms and conditions as are standard for a prudent operator in the radio
business, provided that coverage is in such amount as have been historically
maintained by Licensee over twelve (12) months preceding this Agreement and that
such terms shall include replacement cost coverage for the transmitter system
used in the operation of the Station. Said insurance policy or policies shall be
written by one or more responsible, reputable, and financially secure insurance
companies and shall name Licensee as the insured and the entity to which the
proceeds from and loss or losses covered thereby shall be paid, but shall name
Time Broker as an additional insured.

                                   ARTICLE 13

                                 MISCELLANEOUS

          13.1  Modification and Waiver.  No modification or waiver of any
provision of this Agreement shall in any event be effective unless the same
shall be in writing signed by the party against whom the waiver is sought to be
enforced, and then such waiver and consent shall be effective only in the
specific instance and for the purpose for which given.
 
          13.2  No Waiver; Remedies Cumulative.  No failure or delay on the
part of Licensee or Time Broker in exercising any right or power hereunder shall
operate as a waiver thereof, nor any single or partial exercise of any such
right or power, or any abandonment or discontinuance of steps to enforce such a
right or power, shall preclude any other or further exercise thereof or the
exercise of any other right or power.  The rights and remedies of Licensee and
Time Broker herein provided are cumulative and are not exclusive of any rights
or remedies which they may otherwise have.

          13.3 Construction. This Agreement shall be construed in accordance
with the laws of the State of Michigan without reference to conflict of laws
principles, and the obligations of the parties hereto are subject to all federal
state or municipal laws or regulations now or hereafter in force and to the
regulations of the FCC and all other governmental bodies or authorities
presently or hereafter duly constituted. Any litigation seeking to enforce any
provision of, or based on any right arising out of this Agreement shall be
brought either in a court of the State of Michigan that has jurisdiction over
the matter in question or in the United States District Court for Eastern
District of Michigan if it has or can acquire jurisdiction. The parties agree
that

                                       13
<PAGE>
 
those courts shall be the exclusive forums for all such actions, and hereby
waive any objection to venue in those courts based on the doctrine of forum non
                                                                      ----- ---
conveniens or otherwise.
- ----------              

          13.4  Headings.  The headings contained in this Agreement are
included for convenience only and no such heading shall in any way alter the
meaning of any provision.

          13.5  Successors and Assigns; Exclusive Dealings.  Time Broker
may not assign this Agreement without the prior written consent of Licensee,
except (i) to a wholly-owned subsidiary of, or an affiliate under common control
and with the same ultimate owners as, Time Broker or (ii) pursuant to a
collateral assignment to Time Broker's lenders for the purpose of securing Time
Broker's obligations to such lenders; provided, however, that no such assignment
                                      --------  -------                         
shall relieve Time Broker of its obligations hereunder.  This Agreement may not
be assigned by Licensee without the consent of Time Broker except pursuant to a
collateral assignment to Licensee's lenders for the purpose of securing
Licensee's obligations to such lenders.  Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns.  For so long as this Agreement remains
in effect neither Licensee nor Time Broker nor any party acting as Licensee's or
Time Broker's agent shall directly or indirectly solicit or initiate any offer
from, or conduct any negotiations with, or provide any information to any person
(other than to Licensee or Time Broker, as the case may be) concerning the
acquisition of the Station.

          13.6  Force Majeure.  Both parties acknowledge and agree that a
party will not be liable for any failure to timely perform any of its
obligations under this Agreement if such failure is due, in whole or in part,
directly or indirectly, to accidents, fires, floods, governmental actions, war,
civil disturbances, other causes beyond such party's control or any other
occurrence which would generally be considered an event of force majeure.
                                                           ----- ------- 

          13.7  Broker.  The parties agree to indemnify and hold each other
harmless against any claims from any broker or finder based upon any agreement,
arrangement, or understanding alleged to have been made by the indemnifying
party.

          13.8  Counterpart Signatures.  This Agreement may be signed in
one or more counterparts.

          13.9  Notices.  All notices, requests, demands, and other
communications pertaining to this Agreement shall be in writing and shall be
deemed duly given when delivered personally (which shall include delivery by
Federal Express or other nationally recognized, reputable overnight courier
service that issues a receipt or other confirmation of delivery) to the party
for whom such communication is intended, or three (3) business days after the
date mailed by certified or registered U.S. mail, return receipt requested,
postage prepaid, addressed as follows:

                                       14
<PAGE>
 
     If the notice is to Time Broker:

                         KidStar Interactive Media Inc.
                         1334 First Ave.
                         Suite 150
                         Seattle, WA 98101

     With a copy to:

                         Whalen & Firestone
                         1221 Second Avenue
                         Suite 410
                         Seattle, WA 98101
                         Attn:  Bruce Firestone, Esq.

     If the notice is to Licensee:

                         Evergreen Media Corporation of Detroit
                         433 E. Las Colinas Blvd.
                         Suite 1130
                         Irving, TX  75039
                         Attn:  Scott Ginsburg, Chief Executive Officer


     With a copy to:

                         Latham & Watkins
                         1001 Pennsylvania Avenue, N.W.
                         Suite 1300
                         Washington, D.C.  20004
                         Attn:  Kevin C. Boyle, Esq.

Either party may change its address for notices by notice to such effect to the
other party.

          13.10 Entire Agreement.  This Agreement(including all
attachments, exhibits and schedules) embody the entire agreement between the
parties and there are no other agreements, representations, warranties, or
understandings, oral or written, between them with respect to the subject matter
hereof.

          13.11 Severability.  Except as expressly set forth in section on
regulatory changes Section 13.15, if any provision contained in this Agreement
is held to be invalid, illegal or unenforceable in any respect by any court or
other authority, then such provision shall be deemed limited to the extent that
such court or other authority deems it reasonable and enforceable, and as so
limited shall remain in full force and effect.  In the event that such court or
other authority shall deem any such provision wholly unenforceable, this shall
not affect any other provision hereof,

                                       15
<PAGE>
 
and this Agreement shall be construed as if such invalid, illegal or
unenforceable provision or provisions had not been contained herein unless the
invalidity or unenforceability of such provision or provisions causes the terms
of this Agreement to conflict with the underlying business agreement of the
parties as reflected in this Agreement as written.

          13.12 No Joint Venture.  The parties agree that nothing herein
shall constitute a joint venture between them.  The parties acknowledge that
call letters, trademarks and other intellectual property shall at all times
remain the property of the respective parties and that neither party shall
obtain any ownership interest in the other party's intellectual property by
virtue of this Agreement.

          13.13 Damage to Station.  In the event of damage to the Station
that prevents the Station from operating as normal, Licensee shall take
commercially reasonable steps to promptly restore the operations of the Station;
provided, however, that Licensee shall not be required to expend amounts in
excess of insurance proceeds (other than any applicable deductible) on such
restoration.

          13.14 Noninterference.  During the term of this Agreement,
neither Licensee nor any of its employees shall take any actions that might
impair the operations of Time Broker conducted hereunder, except to the extent
expressly contemplated by this Agreement or as otherwise required by law.

          13.15 Regulatory Changes.  In the event of any order or decree of
an administrative agency or court of competent jurisdiction, including without
limitation any material change or clarification in FCC rules, policies, or
precedent, that would cause this Agreement to be invalid or violate any
applicable law, and such order or decree has become effective and has not been
stayed, the parties will use their respective best efforts and negotiate in good
faith to modify this Agreement to the minimum extent necessary so as to comply
with such order or decree without material economic detriment to either party,
and this Agreement, as so modified, shall then continue in full force and
effect.  In the event that the parties are unable to agree upon a modification
of this Agreement so as to cause it to comply with such order or decree without
material economic detriment to either party, then this Agreement shall be
terminated.

          13.16 Station Revenue.  Throughout the Term of this Agreement,
all revenues, direct and indirect, that result from or relate to, Time Broker's
Programming (excluding revenue from the commercials broadcast during Programming
presented pursuant to the Sport Program Contracts), including but not limited to
the sale by Time Broker of advertising time and/or programs, including all
accounts receivable, shall belong to and be the property of Time Broker.

          13.17 Confidentiality.  Each party agrees that any and all non-
public information learned or obtained by it from the other shall be
confidential and agrees not to disclose any such information to any person
whatsoever other than as is necessary or prudent for the purpose of effecting
this Agreement or as otherwise required by law.

          13.18 Non-Competition Covenant.

                                       16
<PAGE>
 
                (a) Except as disclosed on Schedule 13.18 and as provided for in
Section 13.18(b) of this Agreement, throughout the Term of this Agreement,
neither Licensee, nor any affiliate thereof shall, directly or indirectly,
whether or not for profit, be engaged in, or have any financial interest greater
than five percent (5%) equity in, the business of radio broadcasting as owner,
operator, partner, consultant or employee of a radio station (i) the transmitter
of which is within a radius of 50 miles from the transmitter site of the
Station, and (ii) the format of which targets children six to twelve years of
age (a "Children's Radio Station"). Licensee, or any affiliates thereof, shall
be deemed to be engaged in or to have a financial interest in such a business if
Licensee, or its affiliates, is a partner with any person that is engaged in
such a business, or if Licensee or its affiliates directly or indirectly
performs services for such a person, or beneficially owns an equity interest or
interest convertible into equity, in any such entity, provided, however, that
the foregoing shall not prohibit Licensee or its affiliates from owning for the
purpose of passive investment less than five percent (5%) of any class of
securities of a publicly held corporation.

                (b) Licensee, and any affiliate thereof, may acquire a
Children's Radio Station the ownership of which would otherwise violate Section
13.18(a) of this Agreement, provided (i) the Children's Radio Station is
acquired in connection with the acquisition of interests in other radio stations
and (ii) the broadcast cash flow of the Children's Radio Station equals ten
percent (10%) or less of the aggregate broadcast cash flow of the radio
station(s) that were acquired in connection with the Children's Radio Station. 

                                       17
<PAGE>
 
          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                KIDSTAR INTERACTIVE MEDIA INC.
 


                                By: ____________________________________
                                Name:  _________________________________
                                Title: _________________________________


                                EVERGREEN MEDIA CORPORATION OF DETROIT



                                By: ____________________________________
                                Name:  _________________________________
                                Title: _________________________________

                                       18
<PAGE>
 
                                  SCHEDULE 1.1

                                  PROGRAMMING


          A.   The Programming shall consist of one hundred sixty-five (165)
hours per week on the Station in an entertainment format to be chosen by Time
Broker, subject to Article 1 of this Agreement and subsection C of this
schedule.  The Programming shall include (a) news and weather information; (b)
public service announcements (including, at Licensee's directive from time to
time, a reasonable number of public service announcements of local interest
supplied by Licensee or produced by Time Broker under Licensee's supervision);
(c) an announcement in form sufficient to meet the station identification
requirements of the FCC at the beginning of each hour; (d) an announcement at
the beginning of each segment of Programming to indicate that program time has
been purchased by Time Broker; and (e) any other announcement that may be
required by applicable law or regulation (including but not limited to EBS
tests).  Time Broker shall maintain and deliver to Licensee copies of all
operating and programming information including without limitation information
concerning portions of the Programming that are responsive to issues of public
importance identified to Time Broker by Licensee, EBS announcements, and station
operating logs, necessary for Licensee to maintain its FCC Public File, and all
other records required to be kept by FCC rule or policy.  Time Broker shall have
the sole and exclusive right to sell advertising to be included in the
Programming and shall be entitled to retain all the revenues derived from the
sale thereof.

          B.   Time Broker shall produce under Licensee's supervision and
present three (3) hours a week on the Station public affairs programming that
responds to the needs and interests of listeners in the Station's community of
license.  Time Broker may present such public affairs programming between 6:00
A.M. and 9:00 A.M. on Sundays or at such other times as the public interest
calls for.

          C.   Time Broker will carry and include in its Programming the sports
programming, identified on Attachment A to this Schedule 1.1 as provided in the
Sport Program Contracts, through December 31, 1996.
<PAGE>
 
                                 SCHEDULE 12.12

                            ACTIONS AND PROCEEDINGS

None
<PAGE>
 
                                 SCHEDULE 13.18

                      NON-COMPETITION COVENANT EXCEPTIONS


Radio Stations
- --------------

None
