OF

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EXHIBIT 4.25

[Draft--7/31/97]

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GUARANTEE AGREEMENT

CCCI Capital Trust II

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Dated as of [ ]

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TABLE OF CONTENTS

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ARTICLE I

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

ARTICLE II

Trust Indenture Act

SECTION 2.01. Trust Indenture Act; Application . . . . . . . . . . . . . . . 5
SECTION 2.02. Lists of Holders of Preferred Securities . . . . . . . . . . . 6
SECTION 2.03. Reports by the Guarantee Trustee . . . . . . . . . . . . . . . 6
SECTION 2.04. Periodic Reports to Guarantee Trustee . . . . . . . . . . . . . 6
SECTION 2.05. Evidence of Compliance with Conditions Precedent . . . . . . . 6
SECTION 2.06. Events of Default; Waiver . . . . . . . . . . . . . . . . . . . 7
SECTION 2.07. Disclosure of Information . . . . . . . . . . . . . . . . . . . 7
SECTION 2.08. Conflicting Interest . . . . . . . . . . . . . . . . . . . . . 7

ARTICLE III

Powers, Duties and Rights of Guarantee Trustee

SECTION 3.01. Powers and Duties of the Guarantee Trustee . . . . . . . . . . 7
SECTION 3.02. Certain Rights and Duties of the Guarantee Trustee . . . . . . 9
SECTION 3.03. Not Responsible for Recitals or Issuance of Guarantee . . . . . 12

ARTICLE IV

Guarantee Trustee

SECTION 4.01. Qualifications . . . . . . . . . . . . . . . . . . . . . . . . 12
SECTION 4.02. Appointment, Removal and Resignation of Guarantee Trustee . . . 13

ARTICLE V

Guarantee

SECTION 5.01. Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

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SECTION 5.02. Waiver of Notice . . . . . . . . . . . . . . . . . . . . . . . 14
SECTION 5.03. Obligations Not Affected . . . . . . . . . . . . . . . . . . . 14
SECTION 5.04. Enforcement of Guarantee . . . . . . . . . . . . . . . . . . . 15
SECTION 5.05. Guarantee of Payment . . . . . . . . . . . . . . . . . . . . . 16
SECTION 5.06. Subrogation . . . . . . . . . . . . . . . . . . . . . . . . . . 16
SECTION 5.07. Independent Obligations . . . . . . . . . . . . . . . . . . . . 16

ARTICLE VI

Limitation of Transactions; Subordination

SECTION 6.01. Limitation of Transactions . . . . . . . . . . . . . . . . . . 17
SECTION 6.02. Subordination . . . . . . . . . . . . . . . . . . . . . . . . . 17

ARTICLE VII

Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

ARTICLE VIII

Limitation of Liability; Indemnification

SECTION 8.01. Exculpation . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 8.02. Indemnification . . . . . . . . . . . . . . . . . . . . . . . . 19

ARTICLE IX

Miscellaneous

SECTION 9.01. Successors and Assigns . . . . . . . . . . . . . . . . . . . . 20
SECTION 9.02. Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . 20
SECTION 9.03. Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
SECTION 9.04. Genders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
SECTION 9.05. Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
SECTION 9.06. Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . 21
SECTION 9.07. Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . 21
SECTION 9.08. Exercise of Overallotment Option . . . . . . . . . . . . . . . 21

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GUARANTEE AGREEMENT dated as of [ ],
between Clear Channel Communications, a Texas
corporation (the "Guarantor"), and The Bank of New
York, a New York banking corporation, as the initial
Guarantee Trustee (as defined herein) for the benefit
of the Holders (as defined herein) from time to time
of the Preferred Securities (as defined herein) of
CCCI Capital Trust [ ], a Delaware business trust
(the "Issuer").

WHEREAS, pursuant to an Amended and Restated Declaration of
Trust (the "Declaration") dated as of [ ], among the trustees named
therein, ____________, as Sponsor, and the Holders from time to time of
undivided beneficial interests in the assets of the Issuer, the Issuer may
issue up to $[ ] aggregate liquidation amount of its [ ]%
Preferred Trust Securities (the "Preferred Securities") representing preferred
undivided beneficial interests in the assets of the Issuer and having the terms
set forth in Exhibit B to the Declaration, of which $[ ] aggregate
liquidation amount of Preferred Securities are being issued as of the date
hereof by the Issuer pursuant to the Underwriting Agreement (as defined in the
Declaration); and

WHEREAS, as incentive for the Holders to purchase Preferred
Securities, the Guarantor desires to irrevocably and unconditionally agree, to
the extent set forth herein, to pay to the Holders the Guarantee Payments (as
defined herein) and to make certain other payments on the terms and conditions
set forth herein;

NOW, THEREFORE, in consideration of the purchase by the
initial purchasers thereof of Preferred Securities, which purchase the
Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and
delivers this Guarantee Agreement for the benefit of the Holders from time to
time.
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ARTICLE I

Definitions

(a) Capitalized terms used in this Guarantee Agreement but
not defined in the preamble above have the respective meanings assigned to them
in this Article I.

(b) A term defined anywhere in this Guarantee Agreement has
the same meaning throughout.

(c) All references to "this Guarantee Agreement" are to this
Guarantee Agreement as modified, supplemented or amended from time to time.

(d) All references in this Guarantee Agreement to Articles
and Sections are to Articles and Sections of this Guarantee Agreement unless
otherwise specified.

(e) A term defined in the Trust Indenture Act has the same
meaning when used in this Guarantee Agreement unless otherwise defined in this
Guarantee Agreement or unless the context otherwise requires.

(f) A reference to the singular includes the plural and vice
versa.

"Affiliate" has the same meaning as given to that term in Rule
405 under the Securities Act of 1933, as amended, or any successor rule
thereunder.

"Commission" means the Securities and Exchange Commission.

"Common Securities" means the securities representing common
undivided beneficial interests in the assets of the Issuer, having the terms
set forth in Exhibit C to the Declaration.

"Covered Person" means any Holder.

"Debentures" means the series of Junior Subordinated
Debentures issued by the Guarantor under the Indenture to the Property Trustee
and entitled the "[ ]% Junior Subordinated Debentures due [ ]".
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"Distributions" has the meaning set forth in Exhibit B to the
Declaration.

"Event of Default" means a default by the Guarantor on any of
its payment or other obligations under this Guarantee Agreement; provided,
however, that except with respect to such a default resulting from a failure to
pay any Guarantee Payment, such default shall have continued for more than 30
days.

"Guarantee Payments" shall mean the following Distributions
and other payments, without duplication, with respect to the Preferred
Securities, to the extent not made or paid by the Issuer: (i) any accrued and
unpaid Distributions that are required to be paid on the Preferred Securities,
but only if and to the extent that in each case the Guarantor has made a
payment to the Property Trustee of interest on the Debentures, (ii) the
redemption price, including all accrued and unpaid Distributions to the date of
redemption (the "Redemption Price"), with respect to any Preferred Securities
called for redemption by the Issuer, but only if and to the extent that in each
case the Guarantor has made a payment to the Property Trustee of interest or
principal on the Debentures, and (iii) upon a voluntary or involuntary
dissolution, winding-up or termination of the Issuer (other than in connection
with the distribution of Debentures to Holders or the redemption of all the
Preferred Securities upon the maturity or redemption of the Debentures as
provided in the Declaration), the lesser of (a) the aggregate of the
liquidation amount and all accrued and unpaid Distributions on the Preferred
Securities to the date of payment, to the extent the Issuer has funds available
therefor, and (b) the amount of assets of the Issuer remaining available for
distribution to Holders upon liquidation of the Issuer (in either case, the
"Liquidation Distribution").

"Guarantee Trustee" means The Bank of New York until a
Successor Guarantee Trustee has been appointed and accepted such appointment
pursuant to the terms of this Guarantee Agreement and thereafter means each
such Successor Guarantee Trustee.

"Holder" shall mean any holder, as registered on the books and
records of the Issuer, of any Preferred Securities; provided, however, that in
determining whether the holders of the requisite percentage of Preferred
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Securities have given any request, notice, consent or waiver hereunder,
"Holder" shall not include the Guarantor or any entity directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Guarantor.

"Indemnified Person" means the Guarantee Trustee, any
Affiliate of the Guarantee Trustee, and any officers, directors, shareholders,
members, partners, employees, representatives or agents of the Guarantee
Trustee.

"Indenture" means the Junior Subordinated Debenture Indenture
dated as of [ ], between the Guarantor and The Bank of New York, as
trustee, as amended and supplemented from time to time, pursuant to which the
Debentures are to be issued.

"Investment Company" means an investment company as defined in
the Investment Company Act.

"Investment Company Act" means the Investment Company Act of
1940, as amended from time to time, or any successor legislation.

"Liquidation Distribution" has the meaning set forth in the
definition of Guarantee Payments.

"Majority in liquidation amount of the Preferred Securities"
means, except as otherwise required by the Trust Indenture Act, Holder(s) of
outstanding Preferred Securities voting together as a single class who are the
record owners of Preferred Securities whose aggregate liquidation amount
(including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accrued and unpaid Distributions to the date upon which the
voting percentages are determined) represents more than 50% of the aggregate
liquidation amount of all outstanding Preferred Securities.

"Person" means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.
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"Preferred Securities" has the meaning set forth in the first
WHEREAS clause above.

"Property Trustee" means the Person acting as Property Trustee
under the Declaration.

"Redemption Price" has the meaning set forth in the definition
of Guarantee Payments.

"Responsible Officer" means, with respect to the Guarantee
Trustee, any officer of the Guarantee Trustee with responsibility for the
administration of this Guarantee Agreement and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is
referred because of that officer's knowledge of, and familiarity with, the
particular subject.

"66- 2/3% in liquidation amount of the Preferred Securities"
means, except as otherwise required by the Trust Indenture Act, Holder(s) of
outstanding Preferred Securities voting together as a single class who are the
record owners of Preferred Securities whose aggregate liquidation amount
(including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accrued and unpaid Distributions to the date upon which the
voting percentages are determined) represents 66- 2/3% or more of the aggregate
liquidation amount of all outstanding Preferred Securities.

"Successor Guarantee Trustee" means a successor Guarantee
Trustee possessing the qualifications to act as a Guarantee Trustee under
Section 4.01.

"Trust Indenture Act" means the Trust Indenture Act of 1939,
as amended.

ARTICLE II

Trust Indenture Act

SECTION 2.01. Trust Indenture Act; Application. (a) This
Guarantee Agreement is subject to the provisions of the Trust Indenture Act
that are required to be part of this Guarantee Agreement and shall, to the
extent applicable, be governed by such provisions.
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(b) If and to the extent that any provision of this Guarantee
Agreement limits, qualifies or conflicts with the duties imposed by Sections
310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control.

(c) The application of the Trust Indenture Act to this
Guarantee Agreement shall not affect the nature of the Preferred Securities as
equity securities representing preferred undivided beneficial interests in the
assets of the Issuer.

SECTION 2.02. Lists of Holders of Preferred Securities. (a)
The Guarantor shall provide the Guarantee Trustee with such information as is
required under Section 312(a) of the Trust Indenture Act at the times and in
the manner provided in Section 312(a).

(b) The Guarantee Trustee shall comply with its obligations
under Sections 310(b), 311 and 312(b) of the Trust Indenture Act.

SECTION 2.03. Reports by the Guarantee Trustee. Within 60
days after May 15 of each year, the Guarantee Trustee shall provide to the
Holders such reports as are required by Section 313 of the Trust Indenture Act,
if any, in the form, in the manner and at the times provided by Section 313 of
the Trust Indenture Act. The Guarantee Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act.

SECTION 2.04. Periodic Reports to the Guarantee Trustee. The
Guarantor shall provide to the Guarantee Trustee, the Commission and the
Holders, as applicable, such documents, reports and information as required by
Section 314(a)(1)-(3) (if any) of the Trust Indenture Act and the compliance
certificates required by Section 314(a)(4) and (c) of the Trust Indenture Act,
any such certificates to be provided in the form, in the manner and at the
times required by Section 314(a)(4) and (c) of the Trust Indenture Act
(provided that any certificate to be provided pursuant to Section 314(a)(4) of
the Trust Indenture Act shall be provided within 120 days of the end of each
fiscal year of the Issuer).

SECTION 2.05. Evidence of Compliance with Conditions
Precedent. The Guarantor shall provide the Guarantee Trustee such evidence of
compliance with any
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conditions precedent, if any, provided for in this Guarantee Agreement which
relate to any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given pursuant to Section
314(c) of the Trust Indenture Act shall comply with Section 314(e) of the Trust
Indenture Act.

SECTION 2.06. Events of Default; Waiver. (a) Subject to
Section 2.06(b), Holders may, by vote of at least a Majority in liquidation
amount of the Preferred Securities, (A) direct the time, method and place of
conducting any proceeding for any remedy available to the Guarantee Trustee, or
exercising any trust or power conferred upon the Guarantee Trustee, or (B) on
behalf of the Holders of all Preferred Securities, waive any past Event of
Default and its consequences. Upon such waiver, any such default shall cease
to exist, and any Event of Default arising therefrom shall be deemed to have
been cured for every purpose of this Guarantee Agreement, but no such waiver
shall extend to any subsequent or other default or Event of Default or impair
any right consequent thereon.

(b) The right of any Holder to receive payment of the
Guarantee Payments in accordance with this Guarantee Agreement, or to institute
suit for the enforcement of any such payment, shall not be impaired without the
consent of each such Holder.

SECTION 2.07. Disclosure of Information. The disclosure of
information as to the names and addresses of the Holders in accordance with
Section 312 of the Trust Indenture Act, regardless of the source from which
such information was derived, shall not be deemed to be a violation of any
existing law or any law hereafter enacted which does not specifically refer to
Section 312 of the Trust Indenture Act, nor shall the Guarantee Trustee be held
accountable by reason of mailing any material pursuant to a request made under
Section 312(b) of the Trust Indenture Act.

SECTION 2.08. Conflicting Interest. The Declaration shall be
deemed to be specifically described in this Guarantee Agreement for the
purposes of clause (i) of the first proviso contained in Section 310(b) of the
Trust Indenture Act.
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ARTICLE III

Powers, Duties and Rights of Guarantee Trustee

SECTION 3.01. Powers and Duties of the Guarantee Trustee.
(a) This Guarantee Agreement shall be held by the Guarantee Trustee in trust
for the benefit of the Holders. The Guarantee Trustee shall not transfer its
right, title and interest in this Guarantee Agreement to any Person except a
Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee
of its appointment to act as Guarantee Trustee or to a Holder exercising his or
her rights pursuant to Section 5.04. The right, title and interest of the
Guarantee Trustee to this Guarantee Agreement shall vest automatically in each
Person who may hereafter be appointed as Guarantee Trustee in accordance with
Article IV. Such vesting and cessation of title shall be effective whether or
not conveyancing documents have been executed and delivered.

(b) If an Event of Default occurs and is continuing, the
Guarantee Trustee shall enforce this Guarantee Agreement for the benefit of the
Holders.

(c) This Guarantee Agreement and all moneys received by the
Property Trustee hereunder in respect of the Guarantee Payments will not be
subject to any right, charge, security interest, lien or claim of any kind in
favor of or for the benefit of the Guarantee Trustee or its agents or their
creditors.

(d) The Guarantee Trustee shall, within 90 days after the
occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the Holders, as their names and addresses appear upon the register,
notice of all Events of Default known to the Guarantee Trustee, unless such
Events of Default shall have been cured before the giving of such notice;
provided that, the Guarantee Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Guarantee
Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders. The Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default except any Event of Default as to which the
Guarantee Trustee shall have received written notice or a Responsible Officer
charged
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with the administration of this Guarantee Agreement shall have obtained written
notice.

(e) The Guarantee Trustee shall not resign as a Trustee
unless a Successor Guarantee Trustee has been appointed and accepted that
appointment in accordance with Article IV.

SECTION 3.02. Certain Rights and Duties of the Guarantee
Trustee. (a) The Guarantee Trustee, before the occurrence of an Event of
Default and after the curing or waiving of all Events of Default that may have
occurred, shall undertake to perform only such duties as are specifically set
forth in this Guarantee Agreement, and no implied covenants shall be read into
this Guarantee Agreement against the Guarantee Trustee. In case an Event of
Default has occurred (that has not been cured or waived pursuant to Section
2.06(a)), the Guarantee Trustee shall exercise such of the rights and powers
vested in it by this Guarantee Agreement, and use the same degree of care and
skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

(b) No provision of this Guarantee Agreement shall be
construed to relieve the Guarantee Trustee from liability for its own negligent
action, its own negligent failure to act or its own wilful misconduct, except
that:

(i) prior to the occurrence of an Event of Default and after
the curing or waiving of all Events of Default that may have occurred;

(A) the duties and obligations of the Guarantee
Trustee shall be determined solely by the express provisions
of this Guarantee Agreement, and the Guarantee Trustee shall
not be liable except for the performance of such duties and
obligations as are specifically set forth in this Guarantee
Agreement, and no implied covenants or obligations shall be
read into this Guarantee Agreement against the Guarantee
Trustee; and

(B) in the absence of bad faith on the part of the
Guarantee Trustee, the Guarantee Trustee may conclusively
rely, as to the truth of the statements and the correctness of
the opinions
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expressed therein, upon any certificates or opinions furnished
to the Guarantee Trustee and conforming to the requirements of
this Guarantee Agreement; but in the case of any such
certificates or opinions that by any provision hereof are
specifically required to be furnished to the Guarantee
Trustee, the Guarantee Trustee shall be under a duty to
examine the same to determine whether or not they conform to
the requirements of this Guarantee Agreement;

(ii) the Guarantee Trustee shall not be liable for any error
of judgment made in good faith by a Responsible Officer of the Guarantee
Trustee, unless it shall be proved that the Guarantee Trustee was negligent
in ascertaining the pertinent facts;

(iii) the Guarantee Trustee shall not be liable with respect
to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders as provided herein relating to the time,
method and place of conducting any proceeding for any remedy available to
the Guarantee Trustee, or exercising any trust or power conferred upon the
Guarantee Trustee under this Guarantee Agreement; and

(iv) no provision of this Guarantee Agreement shall require
the Guarantee Trustee to expend or risk its own funds or otherwise incur
personal financial liability in the performance of any of its duties or in
the exercise of any of its rights or powers, if it shall have reasonable
ground for believing that the repayment of such funds or liability is not
reasonably assured to it under the terms of this Guarantee Agreement or
adequate indemnity against such risk or liability is not reasonably assured
to it.

(i) whenever in the administration of this Guarantee
Agreement, the Guarantee Trustee shall deem it desirable that a matter be
proved or established prior to taking, suffering or omitting any action
hereunder, the Guarantee Trustee (unless other evidence is herein
specifically prescribed) may, in the absence of bad faith on its part and,
if the Trust is excluded from the
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definition of Investment Company solely by reason of Rule 3a-7 under the
Investment Company Act ("Rule 3a-7"), subject to the requirements of Rule
3a-7, request and rely upon a certificate, which shall comply with the
provisions of Section 314(e) of the Trust Indenture Act, signed by any
authorized officer of the Guarantor;

(ii) the Guarantee Trustee (A) may consult with counsel (which
may be counsel to the Guarantor or any of its Affiliates and may include any
of its employees) selected by it in good faith and with due care and the
written advice or opinion of such counsel with respect to legal matters
shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon and in accordance with such advice and opinion and (B)
shall have the right at any time to seek instructions concerning the
administration of this Guarantee Agreement from any court of competent
jurisdiction;

(iii) the Guarantee Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Guarantee Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or
attorney appointed by it in good faith and with due care;

(iv) the Guarantee Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Guarantee
Agreement at the request or direction of any Holders, unless such Holders
shall have offered to the Guarantee Trustee reasonable security and
indemnity against the costs, expenses (including attorneys' fees and
expenses) and liabilities that might be incurred by it in complying with
such request or direction; provided that nothing contained in this clause
(iv) shall relieve the Guarantee Trustee of the obligation, upon the
occurrence of an Event of Default (which has not been cured or waived) to
exercise such of the rights and powers vested in it by this Guarantee
Agreement, and to use the same degree of care and skill in such exercise, as
a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs; and
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(v) any action taken by the Guarantee Trustee or its agents
hereunder shall bind the Holders and the signature of the Guarantee Trustee
or its agents alone shall be sufficient and effective to perform any such
action; and no third party shall be required to inquire as to the authority
of the Guarantee Trustee to so act, or as to its compliance with any of the
terms and provisions of this Guarantee Agreement, both of which shall be
conclusively evidenced by the Guarantee Trustee's or its agent's taking such
action.

SECTION 3.03. Not Responsible for Recitals or Issuance of
Guarantee. The recitals contained in this Guarantee Agreement shall be taken
as the statements of the Guarantor and the Guarantee Trustee does not assume
any responsibility for their correctness. The Guarantee Trustee makes no
representations as to the validity or sufficiency of this Guarantee Agreement.

ARTICLE IV

Guarantee Trustee

SECTION 4.01. Qualifications. (a) There shall at all times
be a Guarantee Trustee which shall:

(i) not be an Affiliate of the Guarantor;

(ii) be a corporation organized and doing business under the
laws of the United States of America or any State or Territory thereof or of
the District of Columbia, or a corporation or Person permitted by the
Commission to act as an institutional trustee under the Trust Indenture Act,
authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000, and subject to
supervision or examination by Federal, State, Territorial or District of
Columbia authority. If such corporation publishes reports of condition at
least annually, pursuant to law or to the requirements of the supervising or
examining authority referred to above, then for the purposes of this Section
4.01(a)(ii), the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published; and
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(iii) if the Trust is excluded from the definition of an
Investment Company solely by reason of Rule 3a-7 and to the extent Rule 3a-7
requires a trustee having certain qualifications to hold title to the
"eligible assets" (as defined in Rule 3a-7) of the Trust, possess those
qualifications.

If at any time the Guarantee Trustee shall cease to satisfy
the requirements of clauses (i),(ii) and (iii) above, the Guarantee Trustee
shall immediately resign in the manner and with the effect set out in Section
4.02. If the Guarantee Trustee has or shall acquire any "conflicting interest"
within the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee
Trustee and the Guarantor shall in all respects comply with the provisions of
Section 310(b) of the Trust Indenture Act.

SECTION 4.02. Appointment, Removal and Resignation of
Guarantee Trustee. (a) Subject to Section 4.02(b), the Guarantee Trustee may
be appointed or removed without cause at any time by the Guarantor.

(b) The Guarantee Trustee shall not be removed in accordance
with Section 4.02(a) until a Successor Guarantee Trustee possessing the
qualifications to act as Guarantee Trustee under Section 4.01(a) has been
appointed and has accepted such appointment by written instrument executed by
such Successor Guarantee Trustee and delivered to the Guarantor and the
Guarantee Trustee being removed.

(c) The Guarantee Trustee appointed to office shall hold
office until its successor shall have been appointed and until its removal or
resignation.

(d) The Guarantee Trustee may resign from office (without
need for prior or subsequent accounting) by an instrument (a "Resignation
Request") in writing signed by the Guarantee Trustee and delivered to the
Guarantor, which resignation shall take effect upon such delivery or upon such
later date as is specified therein; provided, however, that no such resignation
of the Guarantee Trustee shall be effective until: (i) a Successor Guarantee
Trustee possessing the qualifications to act as Guarantee Trustee under Section
4.01(a) has been appointed and has accepted such appointment by instrument
executed by such Successor Guarantee Trustee and delivered to the Guarantor and
the resigning Guarantee Trustee; or (ii) until the assets of the
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Trust have been completely liquidated and the proceeds thereof distributed to
the Holders, if the Trust is excluded from the definition of an Investment
Company solely by reason of Rule 3a-7.

(e) If no Successor Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.02 within 60
days after delivery to the Guarantor of a Resignation Request, the resigning
Guarantee Trustee may petition any court of competent jurisdiction for
appointment of a Successor Guarantee Trustee. Such court may thereupon, after
such notice, if any, as it may deem proper and prescribe, appoint a Successor
Guarantee Trustee.

ARTICLE V

Guarantee

SECTION 5.01. Guarantee. The Guarantor irrevocably and
unconditionally agrees to pay in full to the Holders the Guarantee Payments
(without duplication of amounts theretofore paid by the Issuer), regardless of
any defense, right of set-off or counterclaim that the Issuer may have or
assert. The Guarantor's obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to the
Holders or by causing the Issuer to pay such amounts to the Holders.

SECTION 5.02. Waiver of Notice. The Guarantor hereby waives
notice of acceptance of this Guarantee Agreement and of any liability to which
it applies or may apply, presentment, demand for payment, any right to require
a proceeding first against the Issuer or any other Person before proceeding
against the Guarantor, protest, notice of nonpayment, notice of dishonor,
notice of redemption and, to the extent permitted by law, all other notices and
demands.

SECTION 5.03. Obligations Not Affected. The obligations,
covenants, agreements and duties of the Guarantor under this Guarantee
Agreement shall in no way be affected or impaired by reason of the happening
from time to time of any of the following:

(a) the release or waiver, by operation of law or otherwise,
of the performance or observance by the Issuer of any express or implied
agreement, covenant, term or
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condition relating to the Preferred Securities to be performed or observed
by the Issuer;

(b) the extension of time for the payment by the Issuer of all
or any portion of the Distributions (other than an extension of time for
payment of Distributions that results from the extension of any interest
payment period on the Debentures), Redemption Price, Liquidation
Distribution or any other sums payable under the terms of the Preferred
Securities or the extension of time for the performance of any other
obligation under, arising out of, or in connection with, the Preferred
Securities;

(c) any failure, omission, delay or lack of diligence on the
part of the Holders to enforce, assert or exercise any right, privilege,
power or remedy conferred on the Holders pursuant to the terms of the
Preferred Securities, or any action on the part of the Issuer granting
indulgence or extension of any kind;

(d) the voluntary or involuntary liquidation, dissolution,
sale of any collateral, receivership, insolvency, bankruptcy, assignment for
the benefit of creditors, reorganization, arrangement, composition or
readjustment of debt of, or other similar proceedings affecting, the Issuer
or any of the assets of the Issuer;

(e) any invalidity of, or defect or deficiency in, the
Preferred Securities;

(f) the settlement or compromise of any obligation guaranteed
hereby or hereby incurred; or

(g) any other circumstances whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a guarantor, it
being the intent of this Section 5.03 that the obligations of the Guarantor
hereunder shall be absolute and unconditional under any and all
circumstances.

There shall be no obligation of the Holders to give notice to,
or obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.

SECTION 5.04. Enforcement of Guarantee. The Guarantor and
the Guarantee Trustee expressly acknowledge that (i) this Guarantee Agreement
will be deposited with the
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Guarantee Trustee to be held for the benefit of the Holders; (ii) the Guarantee
Trustee has the right to enforce this Guarantee Agreement on behalf of the
Holders; (iii) Holders representing not less than a Majority in liquidation
amount of the Preferred Securities have the right to direct the time, method
and place of conducting any proceeding for any remedy available in respect of
this Guarantee Agreement, including the giving of directions to the Guarantee
Trustee, or exercising any trust or other power conferred upon the Guarantee
Trustee under this Guarantee Agreement, and (iv) if the Guarantee Trustee fails
to enforce this Guarantee Agreement, any Holder may institute a legal
proceeding directly against the Guarantor to enforce its rights under this
Guarantee Agreement, without first instituting a legal proceeding against the
Issuer, the Guarantee Trustee or any other Person. Notwithstanding the
foregoing, if the Guarantor has failed to make a Guarantee Payment, a Holder of
Preferred Securities may directly institute a proceeding against the Guarantor
for enforcement of such Holder's right to receive payment under the Guarantee.
The Guarantor waives any right or remedy to require that any action be brought
first against the Issuer or any other person or entity before proceeding
directly against the Guarantor.

SECTION 5.05. Guarantee of Payment. This Guarantee Agreement
creates a guarantee of payment and not merely of collection. This Guarantee
Agreement will not be discharged except by payment of the Guarantee Payments in
full (without duplication of amounts theretofore paid by the Issuer).

SECTION 5.06. Subrogation. The Guarantor shall be subrogated
to all rights, if any, of the Holders against the Issuer in respect of any
amounts paid to the Holders by the Guarantor under this Guarantee Agreement;
provided, however, that the Guarantor shall not (except to the extent required
by mandatory provisions of law) be entitled to enforce or exercise any rights
which it may acquire by way of subrogation or any indemnity, reimbursement or
other agreement, in all cases as a result of payment under this Guarantee
Agreement, if, at the time of any such payment, any amounts are due and unpaid
under this Guarantee Agreement. If any amount shall be paid to the Guarantor
in violation of the preceding sentence, the Guarantor agrees to hold such
amount in trust for the Holders and to pay over such amount to the Holders.
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SECTION 5.07. Independent Obligations. The Guarantor
acknowledges that its obligations hereunder are independent of the obligations
of the Issuer with respect to the Preferred Securities and that the Guarantor
shall be liable as principal and as debtor hereunder to make Guarantee Payments
pursuant to the terms of this Guarantee Agreement notwithstanding the
occurrence of any event referred to in subsections (a) through (g), inclusive,
of Section 5.03.

ARTICLE VI

Limitation of Transactions; Subordination

SECTION 6.01. Limitation of Transactions. So long as any
Preferred Securities remain outstanding, the Guarantor will not declare or pay
any dividends on, or redeem, purchase, acquire or make a distribution or
liquidation payment with respect to, any of its common stock or preferred stock
or make any guarantee payment with respect thereto if at such time (i) the
Guarantor shall be in default with respect to its Guarantee Payments or other
payment obligations hereunder, (ii) there shall have occurred any Event of
Default (as defined in the Declaration) or (iii) the Guarantor shall have given
notice of its selection of an Extension Period (as defined in the Indenture)
and such period, or any extension thereof, is continuing; provided, however,
that the foregoing restrictions will not apply to (i) dividends, redemptions,
purchases, acquisitions, distributions or payments made by the Guarantor by way
of issuance of shares of its capital stock, (ii) payments of accrued dividends
by the Guarantor upon the redemption, exchange or conversion of any preferred
stock of the Guarantor as may be outstanding from time to time in accordance
with the terms of such preferred stock or (iii) cash payments made by the
Guarantor in lieu of delivering fractional shares upon the redemption, exchange
or conversion of any preferred stock of the Guarantor as may be outstanding
from time to time in accordance with the terms of such preferred stock. In
addition, so long as any Preferred Securities remain outstanding, the Guarantor
(i) will remain the sole direct or indirect owner of all the outstanding Common
Securities and shall not cause or permit the Common Securities to be
transferred except to the extent such transfer is permitted under Section
9.01(c) of the Declaration, provided that any permitted successor of the
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Guarantor under the Indenture may succeed to the Guarantor's ownership of the
Common Securities; and (ii) will use reasonable efforts to cause the Issuer to
continue to be treated as a grantor trust for United States Federal income tax
purposes, except in connection with a distribution of Debentures as provided in
the Declaration.

SECTION 6.02. Subordination. This Guarantee Agreement will
constitute an unsecured obligation of the Guarantor and will rank (i)
subordinate and junior in right of payment to all other indebtedness,
liabilities and obligations of the Guarantor and any guarantees, endorsements
or other contingent obligations of the Guarantor in respect of such
indebtedness, liabilities or obligations, including the Debentures, except
those made pari passu or subordinate by their terms, and (ii) senior to all
capital stock now or hereafter issued by the Guarantor and to any guarantee now
or hereafter entered into by the Guarantor in respect of any of its capital
stock. The Guarantor's obligations under this Guarantee Agreement will rank
pari passu with respect to obligations under other guarantee agreements which
it may enter into from time to time to the extent that such agreements shall be
entered into in substantially the form hereof and provide for comparable
guarantees by the Guarantor of payment on preferred securities issued by other
business trusts of which the Guarantor holds the common securities.

ARTICLE VII

Termination

This Guarantee Agreement shall terminate and be of no further
force and effect upon full payment of the Redemption Price of all Preferred
Securities, or upon the distribution of Debentures to Holders in exchange for
all the Preferred Securities, or upon full payment of the amounts payable in
accordance with the Declaration upon liquidation of the Issuer.
Notwithstanding the foregoing, this Guarantee Agreement will continue to be
effective or will be reinstated, as the case may be, if at any time any Holder
must restore payment of any sums paid with respect to the Preferred Securities
or this Guarantee Agreement.
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ARTICLE VIII

Limitation of Liability; Indemnification

SECTION 8.01. Exculpation. (a) No Indemnified Person shall
be liable, responsible or accountable in damages or otherwise to the Guarantor
or any Covered Person for any loss, damage or claim incurred by reason of any
act or omission performed or omitted by such Indemnified Person in good faith
and in a manner such Indemnified Person reasonably believed to be within the
scope of the authority conferred on such Indemnified Person by this Guarantee
Agreement or by law, except that an Indemnified Person shall be liable for any
such loss, damage or claim incurred by reason of such Indemnified Person's
negligence or wilful misconduct with respect to such acts or omissions.

(b) An Indemnified Person shall be fully protected in relying
in good faith upon the records of the Guarantor and upon such information,
opinions, reports or statements presented to the Guarantor by any Person as to
matters the Indemnified Person reasonably believes are within such other
Person's professional or expert competence and who has been selected with
reasonable care by or on behalf of the Guarantor, including information,
opinions, reports or statements as to the value and amount of assets,
liabilities, profits, losses or any other facts pertinent to the existence and
amounts of assets from which Distributions to Holders might properly be paid.

SECTION 8.02. Indemnification. (a) To the fullest extent
permitted by applicable law, the Guarantor shall indemnify and hold harmless
each Indemnified Person from and against any loss, damage or claim incurred by
such Indemnified Person by reason of any act or omission performed or omitted
by such Indemnified Person in good faith and in a manner such Indemnified
Person reasonably believed to be within the scope of authority conferred on
such Indemnified Person by this Guarantee Agreement, except that no Indemnified
Person shall be entitled to be indemnified in respect of any loss, damage or
claim incurred by such Indemnified Person by reason of negligence or wilful
misconduct with respect to such acts or omissions.

(b) To the fullest extent permitted by applicable law,
expenses (including legal fees) incurred by an Indemnified Person in defending
any claim, demand, action,
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suit or proceeding shall, from time to time, be advanced by the Guarantor prior
to the final disposition of such claim, demand, action, suit or proceeding upon
receipt by the Guarantor of an undertaking by or on behalf of the Indemnified
Person to repay such amount if it shall be determined that the Indemnified
Person is not entitled to be indemnified as authorized in Section 8.02(a).

ARTICLE IX

Miscellaneous

SECTION 9.01. Successors and Assigns. All guarantees and
agreements contained in this Guarantee Agreement shall bind the successors,
assignees, receivers, trustees and representatives of the Guarantor and shall
inure to the benefit of the Holders of the Preferred Securities then
outstanding. Except in connection with a consolidation, merger or conveyance,
transfer or lease of assets involving the Guarantor that is permitted under
Article Ten of the Indenture, the Guarantor shall not assign its obligations
hereunder.

SECTION 9.02. Amendments. Except with respect to any changes
which do not adversely affect the rights of Holders (in which case no consent
of Holders will be required), this Guarantee Agreement may only be amended with
the prior approval of the Holders of not less than 66- 2/3% in liquidation
amount of the Preferred Securities. The provisions of Section 12.02 of the
Declaration concerning meetings of Holders shall apply to the giving of such
approval.

SECTION 9.03 Notices. Any notice, request or other
communication required or permitted to be given
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hereunder shall be in writing, duly signed by the party giving such notice, and
delivered, telecopied or mailed by first class mail as follows:

(a) if given to the Guarantor, to the address set forth below
or such other address as the Guarantor may give notice of to the Holders:

Clear Channel Communications, Inc.
000 Xxxxxxx Xxxxx, Xxxxx 000
Xxx Xxxxxxx, Xxxxx 00000
Facsimile No.: (210) [ ]
Attention: General Counsel

(b) if given to the Guarantee Trustee, to the address set
forth below or such other address as the Guarantee Trustee may give notice
of to the Holders:

The Bank of New York
000 Xxxxxxx Xxxxxx
Floor 21 West
New York, New York 10286
Facsimile No.: (212) [ ]
Attention: Corporate Trust Administration

All notices hereunder shall be deemed to have been given when
received in person, telecopied with receipt confirmed, or mailed by first class
mail, postage prepaid except that if a notice or other document is refused
delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered
on the date of such refusal or inability to deliver.

SECTION 9.04. Genders. The masculine, feminine and neuter
genders used herein shall include the masculine, feminine and neuter genders.

SECTION 9.05. Benefit. This Guarantee Agreement is solely
for the benefit of the Holders and, subject to Section 3.01(a), is not
separately transferable from the Preferred Securities.
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SECTION 9.06. Governing Law. THIS GUARANTEE AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS).

SECTION 9.07. Counterparts. This Guarantee Agreement may be
executed in counterparts, each of which shall be an original; but such
counterparts shall together constitute one and the same instrument.

SECTION 9.08. Exercise of Overallotment Option. If and to
the extent that Preferred Securities are issued by the Issuer upon exercise of
the overallotment option referred to in the first WHEREAS clause, the Guarantor
agrees to give prompt notice thereof to the Guarantee Trustee, but the failure
to give such notice shall not relieve the Guarantor of any of its obligations
hereunder.

This Guarantee Agreement is executed as of the day and year
first above written.

CLEAR CHANNEL COMMUNICATIONS, INC.

---------------------------------
Name:
Title:

THE BANK OF NEW YORK, as Guarantee Trustee

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Name:
Title:

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