Document:

EX-10.1

 Exhibit 10.1 

Execution Version 
 THIS
RESTRUCTURING SUPPORT AGREEMENT IS NOT AN OFFER OR ACCEPTANCE WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF ACCEPTANCES OF A CHAPTER 11 PLAN WITHIN THE MEANING OF SECTION 1125 OF THE BANKRUPTCY CODE. ANY SUCH OFFER OR SOLICITATION WILL
COMPLY WITH ALL APPLICABLE SECURITIES LAWS AND/OR PROVISIONS OF THE BANKRUPTCY CODE. NOTHING CONTAINED IN THIS RESTRUCTURING SUPPORT AGREEMENT SHALL BE AN ADMISSION OF FACT OR LIABILITY OR, UNTIL THE OCCURRENCE OF THE AGREEMENT EFFECTIVE DATE ON THE
TERMS DESCRIBED HEREIN, DEEMED BINDING ON ANY OF THE PARTIES HERETO. 
 RESTRUCTURING SUPPORT AGREEMENT 

This RESTRUCTURING SUPPORT AGREEMENT (including all exhibits, annexes, and schedules hereto in accordance with Section 17.02,
this “Agreement”) is made and entered into as of March 16, 2018 (the “Execution Date”), by and among the following parties, each in the capacity set forth on its signature page to this
Agreement (each of the following described in sub-clauses (i) through (iii) of this preamble, collectively, the “Parties”):1 

 

	 	i.	iHeartMedia, Inc., a corporation incorporated under the Laws of Delaware (“iHeart”) and each of its respective direct and indirect wholly-owned subsidiaries that have executed and delivered
counterpart signature pages to this Agreement to counsel to the Consenting Stakeholders (the entities in this clause (i), collectively, the “Company Parties”);  

 

	 	ii.	the undersigned holders of, or nominees, investment advisors, sub-advisors or managers of funds or accounts that hold Term Loan Credit Facility Claims, PGN Claims, Legacy Notes Claims, and/or 2021 Notes Claims that have
executed and delivered counterpart signature pages to this Agreement to counsel to the Company Parties (who shall promptly provide copies of such signature pages (with the Company Claims/Interests redacted) to counsel to the other Consenting
Stakeholders) (the entities in this clause (ii), collectively, the “Consenting Creditors”); and 

  

	 	iii.	the undersigned holders of, or nominees, investment advisors, sub-advisors or managers of funds or accounts that hold Equity Interests that have executed and delivered counterpart signature pages to this Agreement to
counsel to the Company Parties (who shall promptly provide copies of such signature pages to counsel to the other Consenting Stakeholders) (the entities in this clause (iii), collectively, the “Consenting Sponsors,” and
together with the Consenting Creditors, the “Consenting Stakeholders”). 

  

	1 	Capitalized terms used but not defined in the preamble and recitals to this Agreement have the meanings ascribed to them in Section 1. 

 RECITALS 

WHEREAS, the Company Parties and the Consenting Stakeholders have in good faith and at arms’ length negotiated or been apprised of
certain restructuring and recapitalization transactions with respect to the Company Parties’ capital structure on the terms set forth in this Agreement and as specified in the term sheet attached as Exhibit A hereto
(the “Restructuring Term Sheet” and, such transactions as described in this Agreement and the Restructuring Term Sheet, the “Restructuring Transactions”); 

WHEREAS, the Company Parties intend to implement the Restructuring Transactions by commencing voluntary cases under chapter 11 of the
Bankruptcy Code in the Bankruptcy Court (the cases commenced, the “Chapter 11 Cases”); and 
 WHEREAS,
the Parties have agreed to take certain actions in support of the Restructuring Transactions on the terms and conditions set forth in this Agreement and the Restructuring Term Sheet. 

NOW, THEREFORE, in consideration of the covenants and agreements contained herein, and for other valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, each Party, intending to be legally bound hereby, agrees as follows: 

AGREEMENT 
 Section 1.
Definitions and Interpretation. 
 1.01. Definitions. The following terms shall have the following
definitions: 
 “2019 PGNs” means the 9.000% Priority Guarantee Notes due 2019 issued by iHeartCommunications,
Inc. 
 “2019 PGN Claims” means any Claim on account of the 2019 PGNs. 

“2021 Noteholder Group” means that ad hoc group of holders of 2021 Notes Claims represented by the 2021
Noteholder Group Representatives. 
 “2021 Noteholder Group Representatives” means Gibson,
Dunn & Crutcher LLP and GLC Advisors & Co. 
 “2021 Notes” means the 14.000% senior
notes due 2021, issued by iHeartCommunications, Inc. 
 “2021 Notes Claim” means any Claim on account
of the 2021 Notes. 
 “Affiliate” shall have the meaning set forth in section 101(2) of the
Bankruptcy Code. 
 “Agent” means any facility agent or collateral agent under the Term Loan Credit
Facility, including any successors thereto.  

  
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 “Agents/Trustees” means, collectively, all of the Agents and
Trustees.  
 “Agreement” has the meaning set forth in the preamble to this Agreement and, for the
avoidance of doubt, includes all the exhibits, annexes, and schedules hereto in accordance with Section 17.02 (including the Restructuring Term Sheet). 

“Agreement Effective Date” means the date on which the conditions set forth in Section 2 have been
satisfied or waived by the appropriate Party or Parties in accordance with this Agreement. 
 “Agreement Effective
Period” means, with respect to a Party, the period from the Agreement Effective Date to the Termination Date applicable to that Party (except where a provision of this Agreement survives the Termination Date according to
Section 17.19, in which case such provision shall remain in effect to the extent set forth in Section 17.19). 

“Alternative Restructuring Proposal” means any inquiry, proposal, offer, bid, term sheet, or discussion with respect
to a new money investment, restructuring, reorganization, merger, amalgamation, acquisition, consolidation, dissolution, debt investment, equity investment, liquidation, tender offer, recapitalization, plan of reorganization, share exchange,
business combination, sale, or similar transaction involving any one or more Company Parties or the debt, equity, or other interests in any one or more Company Parties that is an alternative to one or more of the Restructuring Transactions
identified in the Restructuring Term Sheet. 
 “Bankruptcy Code” means title 11 of the United States Code,
11 U.S.C. §§ 101–1532, as amended. 
 “Bankruptcy Court” means the United
States Bankruptcy Court for the Southern District of Texas. 
 “Business Day” means any day other than
a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state of New York. 

“Causes of Action” means any action, Claim, cause of action, controversy, demand, right, action, Lien,
indemnity, Equity Interest, guaranty, suit, obligation, liability, damage, judgment, account, defense, offset, power, privilege, license, and franchise of any kind or character whatsoever, whether known, unknown, contingent or noncontingent, matured
or unmatured, suspected or unsuspected, liquidated or unliquidated, disputed or undisputed, secured or unsecured, assertable directly or derivatively, in contract or in tort, in law or in equity, or pursuant to any other theory of law. 

“CCOH” means Clear Channel Outdoor Holdings, Inc., a corporation incorporated under the laws of Delaware.

 “Chapter 11 Cases” has the meaning set forth in the recitals to this Agreement. 

  
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 “Claim” means (a) a right to payment, whether or not such
right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured and calculated together with all applicable accrued interest, fees and commission due, owing
or incurred from time to time by any Company Party or an applicable obligor or security provider or (b) a right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an
equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured. For the avoidance of doubt, the definition of claim as defined in this Agreement is no less broad than the definition of
claim as defined in section 101(5) of the Bankruptcy Code. 
 “Company Claims/Interests” means,
collectively, all Claims against, and Equity Interests in, a Company Party, including the Term Loan Credit Facility Claims, the PGN Claims, the Legacy Notes Claims, the 2021 Notes Claims, and the Equity Interests. 

“Company Parties” has the meaning set forth in the preamble to this Agreement. 

“Confidentiality Agreement” means an executed confidentiality agreement, including with respect to the issuance
of a “cleansing letter” or other public disclosure of material non-public information agreement, in connection with any proposed Restructuring Transactions. 

“Confirmation Order” means an order by the Bankruptcy Court confirming the Plan. 

“Consenting 2021 Noteholders” means Consenting Stakeholders holding 2021 Notes Claims. 

“Consenting Creditors” has the meaning set forth in the preamble to this Agreement. 

“Consenting Senior Creditors” means Consenting Creditors holding Term Loan Credit Facility Claims or PGN
Claims, including any Affiliate of any Consenting Sponsor to the extent it holds any Term Loan Credit Facility Claims or PGN Claims. 

“Consenting Sponsors” has the meaning set forth in the preamble to this Agreement. 

“Consenting Stakeholders” has the meaning set forth in the preamble to this Agreement. 

“Consenting Term Loan/PGN Group Creditors” means the Consenting Stakeholders that are part of the Term Loan/PGN
Group. 
 “Consistent Alternative Proposal” means an Alternative Restructuring Proposal from or with
any Entity that is approved by both the Company Parties and the Required Consenting Senior Creditors and that (a) provides distributions to each holder of a Junior Debt Claim of a value no less than its pro rata share of the Junior Debt
Alternative Proposal Distribution Value (which condition may be waived by the Required Consenting 2021 Noteholders), (b) provides distributions to each holder of Equity Interests of a value no less than its pro rata share of the Equity Interest
Alternative Proposal Distribution Value (which condition may be waived by the Consenting Sponsors), (c) does not impair the releases to be provided to the 2021 Notes Claims  

  
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or the Equity Interests specified in the Agreement or the Restructuring Term Sheet, and (d) treats holders of Claims in classes comprised of Term Loan Credit Facility Claims and/or PGN
Claims in compliance with applicable Law, including Section 1123(a)(4) of the Bankruptcy Code; provided, however, that in no event shall the value of distributions to any holder of a Term Loan Credit Facility Claim or a PGN Claim
under a Consistent Alternative Proposal exceed the full amount of such holder’s Term Loan Credit Facility Claim or PGN Claim and any other amounts (including interest on such claims) to which such holder is entitled under applicable Law. 

“Definitive Documents” means the documents set forth in Section 3.01. 

“Disclosure Statement” a disclosure statement, including any exhibits, appendices, related documents, ballots,
and procedures related to the solicitation of votes to accept or reject the Plan, in each case, as amended, supplemented, or otherwise modified from time to time in accordance with the terms hereof, and that is prepared and distributed in accordance
with, among other things, sections 1125, 1126(b), and 1145 of the Bankruptcy Code, Rule 3018 of the Federal Rules of Bankruptcy Procedure, and other applicable law. 

“Entity” shall have the meaning set forth in section 101(15) of the Bankruptcy Code. 

“Equity Interest Alternative Proposal Distribution Value” means the value of 1.0% of the total equity value to
be calculated as follows: (a) the total enterprise value of Reorganized iHeart on the effective date of any Alternative Restructuring Proposal, minus (b) $5,750 million, minus (c) the
amount that would have been outstanding under the New ABL Facility (as defined in the Restructuring Term Sheet) as of the Restructuring Effective Date, plus (d) the cash or property given to any Company Party in exchange
(at fair market value) for equity issued by any reorganized Company Party pursuant to such Alternative Restructuring Proposal, plus (e) cash in excess of the balance needed to support business operations that is on hand
after excluding any cash payments required to be made in connection with such Alternative Restructuring Proposal; it being understood that such percentage will be subject to dilution from any management incentive plan(s) and equity issued pursuant
to clause (d) above. 
 “Equity Interests” means, collectively, the shares (or any class thereof),
common stock, preferred stock, limited liability company interests, and any other equity, ownership, or profits interests of iHeartMedia, Inc., and options, warrants, rights, or other securities or agreements to acquire or subscribe for, or which
are convertible into the shares (or any class thereof) of, common stock, preferred stock, limited liability company interests, or other equity, ownership, or profits interests of iHeartMedia, Inc. (in each case whether or not arising under or in
connection with any employment agreement). 
 “Execution Date” has the meaning set forth in the
preamble to this Agreement. 
 “Financing Order” means any order entered in the Chapter 11 Cases
authorizing the use of debtor in possession financing or cash collateral (whether interim or final) or providing adequate protection in respect of Term Loan Credit Facility Claims and/or PGN Claims. 

“First Day Pleadings” means the first-day pleadings that the Company Parties determine are necessary or
desirable to file. 

  
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 “Junior Debt Alternative Proposal Distribution Value” means
(a) $200 million plus (b) the value of 5.0% of the total equity value to be calculated as follows: (i) the total enterprise value of Reorganized iHeart on the effective date of any Alternative Restructuring
Proposal, minus (ii) $5,750 million, minus (iii) the amount that would have been outstanding under the New ABL Facility (as defined in the Restructuring Term Sheet) as of the Restructuring
Effective Date, plus (iv) the cash or property given to any Company Party in exchange (at fair market value) for equity issued by any reorganized Company Party pursuant to such Alternative Restructuring Proposal,
plus (v) cash in excess of the balance needed to support business operations that is on hand after excluding any cash payments required to be made in connection with such Alternative Restructuring Proposal; it being
understood that such percentage will be subject to dilution from any management incentive plan(s) and equity issued pursuant to clause (iv) above.  

“Junior Debt Claims” means the Legacy Notes Claims and the 2021 Notes Claims. 

“Law” means any federal, state, local, or foreign law (including common law), statute, code, ordinance, rule,
or regulation, in each case, that is validly adopted, promulgated, or issued by a governmental authority of competent jurisdiction. 

“Legacy Notes” means the 6.875% senior notes due 2018; the 7.250% senior notes due 2027, and the 5.50% senior
notes due 2016 issued by iHeartCommunications, Inc. 
 “Legacy Notes Claims” means any Claim on
account of the Legacy Notes. 
 “Lien” shall have the meaning set forth in section 101(37) of the
Bankruptcy Code. 
 “Milestone” shall have the meaning set forth in the Restructuring Term Sheet.

 “Other PGNs” means the PGNs other than the 2019 PGNs. 

“Other PGN Claims” means the PGN Claims other than the 2019 PGN Claims. 

“Outside Date” means the date that is 365 days from the Petition Date; provided that the
Parties shall negotiate in good faith for a reasonable extension of the Outside Date if the Parties have otherwise complied with the terms of the Definitive Documents and all other events and actions necessary for the occurrence of the Restructuring
Effective Date have occurred other than the receipt of regulatory or other approval of a governmental unit necessary for the occurrence of the Restructuring Effective Date. 

“Parties” has the meaning set forth in the preamble to this Agreement. 

“Permitted Transferee” means each transferee who meets the requirements of Section 8.01. 

“Petition Date” means the first date any of the Company Parties commences a Chapter 11 Case. 

  
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 “PGN Claim” means any Claim on account of the PGNs. 

“PGNs” means, collectively, the 9.000% Priority Guarantee Notes due 2019, 9.000% Priority Guarantee Notes due
2021, 11.250% Priority Guarantee Notes due 2021, 9.000% Priority Guarantee Notes due 2022, and 10.625% Priority Guarantee Notes due 2023, issued by iHeartCommunications, Inc. 

“Plan” means a chapter 11 plan of reorganization for the Company Parties through which the Restructuring
Transactions will be effected. 
 “Plan Supplement” means the compilation of documents and forms of
documents, schedules, and exhibits to the Plan that will be filed by the Company Parties with the Bankruptcy Court. 

“Qualified Marketmaker” means an entity that (a) holds itself out to the public or the applicable private markets
as standing ready in the ordinary course of business to purchase from customers and sell to customers Company Claims/Interests (or enter with customers into long and short positions in Company Claims/Interests), in its capacity as a dealer or market
maker in Company Claims/Interests and (b) is, in fact, regularly in the business of making a market in claims against issuers or borrowers (including debt securities or other debt). 

“Required Consenting Creditors” means the Required Consenting 2021 Noteholders and the Required Consenting
Senior Creditors. 
 “Required Consenting 2021 Noteholders” means, as of the relevant date, (i) with
respect to any consent, amendment, waiver, or other modification to the Restructuring Term Sheet, (ii) with respect to any consent, amendment, waiver, or other modification to the Definitive Documents, and (iii) for all other purposes
under this Agreement, in each case solely to the extent such consent is required by this Agreement, holders of 2021 Notes Claims equal to at least 50.01% of the aggregate outstanding 2021 Notes Claims that are held by the Consenting Creditors at all
times excluding any 2021 Notes Claims held by any Company Party or its direct and indirect wholly-owned subsidiaries and further excluding Consenting 2021 Noteholders that are part of the Term Loan/PGN Group; provided, however, that,
with respect to clauses (i) and (iii) above, if any holder of 2021 Notes Claims fails to respond to a request, delivered in accordance with the requirements of Section 17.11, for a consent, waiver, or amendment of or in relation to
any of the terms of this Agreement within ten (10) Business Days of that request being made (unless the Company Parties agree to a longer period), the outstanding principal amount of such holder’s 2021 Notes Claims at such time shall not
be included for the purpose of calculating the aggregate outstanding principal amount of 2021 Notes Claims held by all such holders of 2021 Notes Claims that are Consenting Stakeholders at such time when ascertaining whether any relevant percentage
of the aggregate outstanding principal amount of 2021 Notes Claims held by all holders of 2021 Notes Claims that are Consenting Stakeholders has been obtained to approve that request. 

  
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 “Required Consenting Senior Creditors” means, as of the relevant date,
(i) with respect to any consent, amendment, waiver, or other modification to the Restructuring Term Sheet, (ii) with respect to any consent, amendment, waiver, or other modification to the Definitive Documents, and (iii) for all other
purposes under this Agreement, holders of PGN Claims and Term Loan Credit Facility Claims equal to at least 66.67% of the aggregate outstanding PGN Claims and Term Loan Credit Facility Claims that are held by the Consenting Senior Creditors who are
not Consenting 2021 Noteholders that are part of the 2021 Noteholder Group or Company Parties; provided, however, that, with respect to clauses (i) and (iii) above, if any holder of PGN Claims or Term Loan Credit Facility
Claims fails to respond to a request, delivered in accordance with the requirements of Section 17.11, for a consent, waiver, or amendment of or in relation to any of the terms of this Agreement within ten (10) Business Days of that request
being made (unless the Company Parties agree to a longer period), the outstanding principal amount of such holder’s PGN Claims and Term Loan Credit Facility Claims at such time shall not be included for the purpose of calculating the aggregate
outstanding principal amount of PGN Claims or Term Loan Credit Facility Claims held by all such Consenting Senior Creditors at such time when ascertaining whether any relevant percentage of the aggregate outstanding principal amount of PGN Claims or
Term Loan Credit Facility Claims held by all Consenting Senior Creditors has been obtained to approve that request. 

“Restricted Period” means the period commencing as of the date each Consenting Stakeholder, as applicable,
executes this Agreement until the Termination Date, as to such Consenting Stakeholder. 
 “Restructuring Effective
Date” means the occurrence of the Effective Date of the Plan according to its terms. 
 “Restructuring
Term Sheet” has the meaning set forth in the recitals to this Agreement. 
 “Restructuring
Transactions” has the meaning set forth in the recitals to this Agreement. 
 “Rules”
means Rule 501(a)(1), (2), (3), and (7) of the Securities Act. 
 “Securities Act” means the
Securities Act of 1933, as amended. 
 “Solicitation Materials” means all solicitation materials in
respect of the Plan. 
 “Termination Date” means the date on which termination of this Agreement as to a
Party is effective in accordance with Sections 12.01, 12.02, 12.03, or 12.04. 
 “Term Lender
Group” means that ad hoc group of holders of Term Loan Credit Facility Claims represented by the Term Lender Group Representatives. 

“Term Lender Group Representatives” means Arnold & Porter Kaye Scholer LLP and Ducera Partners.

 “Term Loan/PGN Group” means that ad hoc group of holders of Term Loan Credit Facility Claims and PGN
Claims that are parties to that certain Third Cooperation Agreement dated June 16, 2017. 

  
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 “Term Loan/PGN Group Representatives” means Jones Day and PJT
Partners LP. 
 “Term Loan Credit Facility” means both the Term Loan D Facility due 2019 and the Term
Loan E Facility due 2019 
 “Term Loan Credit Facility Claims” means any Claim on account of the Term
Loan Credit Facility. 
 “Texas Litigation” means the following proceedings:
(a) iHeartCommunications, Inc. v. Benefit Street Partners LLC et al., No. 2016 CI 04006 in the District Court of Bexar County, Texas; (b) iHeartCommunications, Inc. v. Canyon Capital Advisors LLC et al., No. 2016 CI 07857 in the
District Court of Bexar County, Texas; (c) iHeartCommunications, Inc. et al. v. Benefit Street Partners LLC et al., Cause No. 2016 CI 12468 in the District Court of Bexar County, Texas; (d) Franklin Advisers, Inc., et al. v. iHeart
Communications, Inc., Case No. 04-16-00532-CV, in the Fourth Court of Appeals District, San Antonio, Texas; and (e) all appellate proceedings related to any of the foregoing. 

“Transfer” means to (i) sell, resell, contract to sell, reallocate, use, pledge, assign, transfer,
hypothecate, participate, donate, give, offer, sell any option or contract to purchase, grant a participation interest in, or otherwise encumber or dispose of, directly or indirectly (including through derivatives, options, swaps, pledges, forward
sales or other transactions); provided, however, that holding securities attesting ownership of Company Claims/Interests in an account with a broker-dealer where the broker-dealer holds a
security interest or other encumbrance over property in the account generally, which security interest or other encumbrance is released upon transfer of such securities, shall not constitute a “Transfer” for purposes hereof or
(ii) grant any proxies, deposit of any Claims against the company Parties into a voting trust, or enter into a voting agreement with respect to any such Claims. 

“Transfer Agreement” means an executed form of the transfer agreement providing, among other things, that a
transferee is bound by the terms of this Agreement and substantially in the form attached hereto as Exhibit B. 

“Trustee” means any indenture trustee, collateral trustee, or other trustee or similar entity under the PGNs,
the Legacy Notes, and the 2021 Notes, including any successors thereto.  
 1.02. Interpretation. For purposes of this
Agreement: 
 (a) in the appropriate context, each term, whether stated in the singular or the plural, shall include both the singular and
the plural, and pronouns stated in the masculine, feminine, or neuter gender shall include the masculine, feminine, and the neuter gender; 

(b) capitalized terms defined only in the plural or singular form shall nonetheless have their defined meanings when used in the opposite form;

 (c) unless otherwise specified, any reference herein to a contract, lease, instrument, release, indenture, or other agreement or document
being in a particular form or on particular terms and conditions means that such document shall be substantially in such form or substantially on such terms and conditions; 

  
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 (d) unless otherwise specified, any reference herein to an existing document, schedule, or
exhibit shall mean such document, schedule, or exhibit, as it may have been or may be amended, restated, supplemented, or otherwise modified from time to time; provided that any capitalized terms herein which are defined with reference to
another agreement, are defined with reference to such other agreement as of the date of this Agreement, without giving effect to any termination of such other agreement or amendments to such capitalized terms in any such other agreement following
the date hereof; 
 (e) unless otherwise specified, all references herein to “Sections” are references to Sections of this
Agreement; 
 (f) the words “herein,” “hereof,” and “hereto” refer to this Agreement in its entirety rather
than to any particular portion of this Agreement; 
 (g) captions and headings to Sections are inserted for convenience of reference only and
are not intended to be a part of or to affect the interpretation of this Agreement; 
 (h) references to “shareholders,”
“directors,” and/or “officers” shall also include “members” and/or “managers,” as applicable, as such terms are defined under the applicable limited liability company Laws; 

(i) the use of “include” or “including” is without limitation, whether stated or not; and 

(j) the phrase “counsel to the Consenting Stakeholders” refers in this Agreement to each counsel specified in Section 17.11
other than counsel to the Company Parties. 
 Section 2. Effectiveness of this Agreement. 

(a) This Agreement shall become effective and binding upon each of the Parties at 12:00 a.m., prevailing Eastern Standard Time, on the
Agreement Effective Date, which is the date on which all of the following conditions have been satisfied or waived in accordance with this Agreement: 

(i) each of the Company Parties shall have executed and delivered counterpart signature pages of this Agreement to counsel to each of the
Consenting Stakeholders; 
 (ii) unless waived or modified by the Company Parties, the Required Consenting Senior Creditors, and the
Consenting Sponsors, the following parties shall have executed and delivered counterpart signature pages of this Agreement to counsel to each of the Consenting Stakeholders and counsel to the Company Parties: 

 

	 	(A)	holders of at least 67% of the aggregate outstanding principal amount of Term Loan Credit Facility Claims and PGN Claims; 

  
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	 	(B)	holders of at least 67% of the aggregate outstanding principal amount of Junior Debt Claims, excluding any Junior Debt Claims held by Company Parties or their Affiliates who are not Consenting Sponsors; and

  

	 	(C)	the Consenting Sponsors. 

 (iii) counsel to iHeart shall have given notice to counsel to the
Consenting Stakeholders in the manner set forth in Section 17.11 hereof that the other conditions to the Agreement Effective Date set forth in this Section 2(a) have occurred. 

Section 3. Definitive Documents. 

3.01. The Definitive Documents governing the Restructuring Transactions shall consist of this Agreement and the following: (A) the Plan
(and all exhibits thereto); (B) the Confirmation Order and pleadings in support of entry of the Confirmation Order; (C) the Disclosure Statement and pleadings in support of approval of the Disclosure Statement; (D) the Solicitation
Materials; (E) any order of the Bankruptcy Court approving the Disclosure Statement and the other Solicitation Materials; (F) the Financing Order and any credit agreement (including any amendments, modifications, and supplements thereto);
(G) the First Day Pleadings and all orders sought pursuant thereto; and (H) the Plan Supplement. 
 3.02. The Definitive Documents
not executed or in a form attached to this Agreement as of the Execution Date remain subject to negotiation and completion. Upon completion, the Definitive Documents and every other document, deed, agreement, filing, notification, letter or
instrument related to the Restructuring Transactions shall contain terms, conditions, representations, warranties, and covenants consistent with the terms of this Agreement, including the Restructuring Term Sheet, as they may be modified, amended,
or supplemented in accordance with Section 16. Further, the Definitive Documents not executed or in a form attached to this Agreement as of the Execution Date shall otherwise be in form and substance reasonably acceptable to the Company
Parties, the Required Consenting Senior Creditors, and, (a) solely with respect to those terms and provisions that would have a material adverse effect on the value of the distributions to the holders of 2021 Notes Claims or impair the releases
in favor of the Required Consenting 2021 Noteholders provided under the Plan as described in Annex 2 to the Restructuring Term Sheet, the Required Consenting 2021 Noteholders, and (b) solely with respect to those terms and provisions that would
have a material adverse effect on the value of the distributions to the Consenting Sponsors on account of their Equity Interests or impair the releases in favor of the Consenting Sponsors provided under the Plan as described in Annex 2 to the
Restructuring Term Sheet, the Consenting Sponsors. 
 Section 4. Commitments of the Consenting Stakeholders. 

4.01. General Commitments, Forbearances, and Waivers.  

(a) During the Agreement Effective Period, each Consenting Stakeholder (severally and not jointly) agrees in respect of all of its Company
Claims/Interests pursuant to this Agreement to: 

  
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 (i) support the Restructuring Transactions and timely vote and exercise any powers or rights
available to it (including in any board, shareholders’, or creditors’ meeting or in any process requiring voting or approval to which they are legally entitled to participate) in each case in favor of any matter requiring approval to the
extent necessary to implement the Restructuring Transactions; 
 (ii) use commercially reasonable efforts to cooperate with and assist the
Company Parties in obtaining additional support for the Restructuring Transactions from the Company Parties’ other stakeholders; 

(iii) consult and coordinate in good faith with the Company Parties and their representatives or agents regarding the evaluation and
consideration of any Alternative Restructuring Proposal that such Consenting Stakeholder may be involved in pursuant to the terms of this Agreement; 

(iv) solely with respect to the Term Loan/PGN Group and the Term Loan/PGN Group Representatives, (A) consult and coordinate in good faith
with the Company Parties regarding any process to solicit, initiate, encourage, induce, negotiate, facilitate, continue, develop, or respond to any Alternative Restructuring Proposals (including with respect to the Company Parties’ involvement
and participation in such activities); (ii) promptly share any Alternative Restructuring Proposal that the Term Loan/PGN Group Representatives receive with the Company Parties unless the proponent of such Alternative Restructuring Proposal
requires that such Alternative Restructuring Proposal not be shared with the Company Parties; and (iii) participate in no less than weekly (and more frequently if the Company Parties determine it is appropriate) calls with the Company Parties
regarding the status and progress of the Term Loan/PGN Group’s efforts with respect to the development of any Alternative Restructuring Proposals; 

(v) solely with respect to the 2021 Noteholder Group and the 2021 Noteholder Group Representatives, (A) consult and coordinate in good
faith with the Company Parties regarding any process to solicit, initiate, encourage, induce, negotiate, facilitate, continue, develop, or respond to any Alternative Restructuring Proposals (including with respect to the Company Parties’
involvement and participation in such activities); (ii) promptly share any Alternative Restructuring Proposal that the 2021 Noteholder Group Representatives receive with the Company Parties unless the proponent of such Alternative Restructuring
Proposal requires that such Alternative Restructuring Proposal not be shared with the Company Parties; and (iii) participate in no less than weekly (and more frequently if the Company Parties determine it is appropriate) calls with the Company
Parties regarding the status and progress of the 2021 Noteholder Group’s efforts with respect to the development of any Alternative Restructuring Proposals; 

(vi) refrain from taking any action whatsoever, except as set forth in this Section 4.01(a)(vi), with respect to the Texas Litigation
during the Agreement Effective Period; provided, however, that to the extent any deadline, order, or proceeding requires any party to take any action in the Texas Litigation during the Agreement Effective Period, (x) the Company
Parties and the Consenting Senior Creditors each hereby agree to immediately seek an extension 

  
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of such deadline, order, or proceeding; (y) the Consenting Senior Creditors may file motions to abate and/or stay the Texas Litigation, which motions shall not be opposed by the Company
Parties; and (z) solely to the extent such deadline, order, or proceeding has not been extended or stayed or the applicable proceeding has not been abated or stayed, the Consenting Senior Creditors may take any action necessary to preserve and
protect their rights in such proceeding. 
 (vii) give any notice, order, instruction, or direction to the applicable Agents/Trustees
necessary to give effect to the Restructuring Transactions; and 
 (viii) negotiate in good faith and use commercially reasonable efforts to
execute and implement the Definitive Documents that are consistent with this Agreement to which it is required to be a party. 
 (b) During
the Agreement Effective Period, each Consenting Stakeholder (severally and not jointly) agrees in respect of all of its Company Claims/Interests pursuant to this Agreement that it shall not directly or indirectly: 

(i) object to, delay, impede, or take any other action to interfere with acceptance, implementation, or consummation of the Restructuring
Transactions; 
 (ii) either itself or through any representatives or agents (x) except with the prior written consent of the Company
Parties or as provided in Section 6.01(j), solicit, initiate, encourage (including by furnishing information), induce, negotiate, facilitate, continue, or respond to any Alternative Restructuring Proposals from or with any Entity or
(y) propose, file, support, consent to, seek formal or informal credit committee approval of, or vote for any Alternative Restructuring Proposal (and shall immediately inform the Company Parties and the other Consenting Stakeholders of any
notification of an Alternative Restructuring Proposal); provided, however, that nothing contained in this Agreement shall prohibit the Term Loan/PGN Group, the Term Loan/PGN Group Representatives, the 2021 Noteholder Group, and the
2021 Noteholder Group Representatives from taking any action otherwise prohibited by Section 4.01(b)(ii)(x); 
 (iii) initiate, or have
initiated on its behalf, any litigation or proceeding that is inconsistent with this Agreement against the Company Parties or the other Parties; and 

(iv) directly or indirectly object to, delay, impede, or take any other action to interfere with the Company Parties’ ownership and
possession of their assets, wherever located (including interfering with the automatic stay arising under section 362 of the Bankruptcy Code) that is required to implement this Agreement; provided, however, that nothing in this
Agreement shall limit the right of any Party to exercise any right or remedy provided under a Financing Order, the Confirmation Order, or any other Definitive Document. 

4.02. Commitments with Respect to Chapter 11 Cases. 

(a) During the Agreement Effective Period, each Consenting Stakeholder that is entitled to vote to accept or reject the Plan pursuant to its
terms agrees that it shall, subject to receipt by such Consenting Stakeholder, whether before or after the commencement of the Chapter 11 Cases, of the Solicitation Materials: 

  
 13 

 (i) vote each of its Company Claims/Interests to accept the Plan by delivering its duly executed
and completed ballot accepting the Plan on a timely basis following the commencement of the solicitation of the Plan and its actual receipt of the Solicitation Materials and the ballot; and 

(ii) not change, withdraw, amend, or revoke (or cause to be changed, withdrawn, amended, or revoked) any vote referred to in clause (a)(i)
above; provided, however, that nothing in this Agreement shall prevent any Party from changing, withholding, amending, or revoking (or causing the same) its timely consent or vote with respect to the Plan if this Agreement has been
terminated with respect to such Party. 
 (b) During the Agreement Effective Period, each Consenting Stakeholder, in respect of each of its
Company Claims/Interests, will support, and will not directly or indirectly object to, delay, impede, or take any other action to interfere with any motion or other pleading or document filed by a Company Party in the Bankruptcy Court that is
required to implement this Agreement and does not seek other relief. 
 (c) During the Agreement Effective Period, each Consenting
Stakeholder agrees that it will not file, will oppose, and will not support any motion to appoint a trustee in one or more of the Chapter 11 Cases of any Company Party or appoint an examiner with expanded powers beyond those set forth in
section 1106(a)(3) and (4) of the Bankruptcy Code. 
 Section 5. Additional Provisions Regarding the Consenting
Stakeholders’ Commitments. Notwithstanding anything contained in this Agreement, and notwithstanding any delivery of a consent or vote to accept the Plan, by any Consenting Stakeholder, or any acceptance of the Plan by any class of
creditors, nothing in this Agreement shall: 
 (a) be construed to prohibit any Consenting Stakeholder from contesting whether any matter,
fact, or thing is a breach of, or is inconsistent with, this Agreement; 
 (b) be construed to prohibit any Consenting Stakeholder from
appearing as a party in interest in any matter to be adjudicated in these Chapter 11 Cases, so long as such appearance and the positions advocated in connection therewith are not materially inconsistent with this Agreement and are not for
the purpose of delaying, interfering with, impeding, or taking any other action to delay, interfere with or impede, directly or indirectly, the Restructuring Transactions; 

(c) subject to the terms of Section 4.01(b)(ii) affect the ability of any Consenting Stakeholder to consult with any other Consenting
Stakeholder, the Company Parties, or any other party in interest in the Chapter 11 Cases (including any official committee and the United States Trustee); 

(d) impair or waive the rights of any Consenting Stakeholder to assert or raise any objection permitted under this Agreement in connection with
the Restructuring Transactions; 

  
 14 

 (e) prevent any Consenting Stakeholder from enforcing this Agreement; 

(f) require any Consenting Stakeholder to incur any material financial or other material liability other than as expressly described in this
Agreement; 
 (g) obligate a Consenting Stakeholder to deliver a vote to support the Plan or prohibit a Consenting Stakeholder from
withdrawing such vote, in each case upon the Termination Date (other than as a result of the occurrence of the Restructuring Effective Date); provided that upon the withdrawal of any such vote on or after the Termination Date (other than as a
result of the occurrence of the Restructuring Effective Date), such vote shall be deemed void ab initio and such Consenting Stakeholder shall have the opportunity to change its vote;  

(h) require any Consenting Stakeholder to take any action that is prohibited by applicable Law or to waive or forego the benefit of any
applicable legal professional privilege; 
 (i) prevent any Consenting Stakeholder from taking any action that is required by applicable Law;

 (j) prevent any Consenting Stakeholder by reason of this Agreement or the Restructuring Transactions from making, seeking, or receiving
any regulatory filings, notifications, consents, determinations, authorizations, permits, approvals, licenses, or the like; 
 (k) be
construed as limiting the exercise of fiduciary duties by (a) the Consenting Sponsors or (b) their employees, in each case solely arising from serving on the board of directors of any Company Party; 

(l) prevent any Consenting Stakeholder from taking any customary perfection step or other action as is necessary to preserve or defend the
validity, existence or priority of its Company Claims/Interests (including, without limitation, the filing of a proof of claim against any Company Party); 

(m) prohibit any Consenting Stakeholder from taking any action that is not inconsistent with this Agreement; or 

(n) preclude any Consenting Stakeholder from serving on any official committee that may be appointed in the Chapter 11 Cases or from exercising
such Consenting Stakeholder’s fiduciary duties as required in its capacity as a member of such committee. 
 Section 6. Commitments
of the Company Parties.  
 6.01. Affirmative Commitments. Except as set forth in Section 7, during the Agreement
Effective Period, the Company Parties agree to: 
 (a) support and take all steps reasonably necessary and desirable to confirm the Plan and
consummate the Restructuring Transactions in accordance with this Agreement, including by complying with Section 4 and Section 5 to the extent they hold or otherwise control any Company Claims/Interests and by electing to seek and
prosecute confirmation of the Plan over any non-accepting class; 

  
 15 

 (b) to the extent any legal or structural impediment arises that would prevent, hinder, or delay
the consummation of the Restructuring Transactions contemplated herein, support and take all steps reasonably necessary and desirable to address any such impediment; 

(c) use commercially reasonable efforts to obtain any and all required regulatory and/or third-party approvals for the Restructuring
Transactions; 
 (d) use commercially reasonable efforts to actively oppose and object to the efforts of any person seeking to object to,
delay, impede, or take any other action to interfere with the acceptance, implementation, or consummation of the Restructuring Transactions (including, if applicable, the timely filing of objections or written responses in a Chapter 11 Case) to the
extent such opposition or objection is reasonably necessary or desirable to facilitate implementation of the Restructuring Transactions; 

(e) negotiate in good faith and use commercially reasonable efforts to execute and deliver the Definitive Documents and any other required
agreements to effectuate and consummate the Restructuring Transactions as contemplated by this Agreement; 
 (f) use commercially reasonable
efforts to seek additional support for the Restructuring Transactions from their other material stakeholders to the extent reasonably prudent; 

(g) consult with the advisors to the Consenting Stakeholders regarding the implementation of the Restructuring Transactions and the development
of Alternative Restructuring Proposals; 
 (h) upon reasonable request of the Consenting Stakeholders, inform the advisors to the Consenting
Stakeholders as to: (i) the status and progress of the Restructuring Transactions, including progress in relation to the negotiations of the Definitive Documents; and (ii) the status of obtaining any necessary or desirable authorizations
(including any consents) from each Consenting Stakeholder, any competent judicial body, governmental authority, banking, taxation, supervisory, or regulatory body or any stock exchange; 

(i) inform counsel to the Consenting Stakeholders as soon as reasonably practicable after becoming aware of: (i) any event or circumstance
that has occurred, or that is reasonably likely to occur (and if it did so occur), that would permit any Party to terminate, or would result in the termination of, this Agreement; (ii) any matter or circumstance which they know, or suspect is
likely, to be a material impediment to the implementation or consummation of the Restructuring Transactions; (iii) any notice of any commencement of any material involuntary insolvency proceedings, legal suit for payment of debt or securement
of security from or by any person in respect of any Company Party; (iv) a breach of this Agreement (including a breach by any Company Party); and (v) any representation or statement made or deemed to be made by them under this Agreement
which is or proves to have been materially incorrect or misleading in any respect when made or deemed to be made; 

  
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 (j) (i) consult and coordinate in good faith with the Term Loan/PGN Group and the Term
Loan/PGN Group Representatives regarding the Company Parties’ process to solicit, initiate, encourage, induce, negotiate, facilitate, continue, develop, or respond to any Alternative Restructuring Proposals (including with respect to the Term
Loan/PGN Group’s and Term Loan/PGN Group Representatives’ involvement and participation in such activities); (ii) promptly share any Alternative Restructuring Proposal that the Company Parties receive with the Term Loan/PGN Group
and/or the Term Loan/PGN Group Representatives unless the proponent of such Alternative Restructuring Proposal requires that such Alternative Restructuring Proposal not be shared with the Term Loan/PGN Group and/or the Term Loan/PGN Group
Representatives; and (iii) participate in no less than weekly (and more frequently if the Term Loan/PGN Group Representatives determine it is appropriate) calls with the Term Loan/PGN Group Representatives regarding the status and progress of
the Company Parties’ efforts with respect to the development of any Alternative Restructuring Proposals; 
 (k) use commercially
reasonable efforts to provide the Term Loan/PGN Group Representatives and Term Lender Group Representatives with regular access to information regarding the operations of CCOH; 

(l) use commercially reasonable efforts to keep the 2021 Noteholder Group, the Term Lender Group, and Consenting Sponsors informed of any
discussions regarding the development of any Alternative Restructuring Proposal; 
 (m) use commercially reasonable efforts to maintain their
good standing under the Laws of the state or other jurisdiction in which they are incorporated or organized; 
 (n) use commercially
reasonable efforts to operate their business in the ordinary course, taking into account the Restructuring Transactions; and 
 (o) refrain
from taking any action whatsoever, except as set forth in this Section 6.01(o), with respect to the Texas Litigation during the Agreement Effective Period; provided, however, that to the extent any deadline, order, or proceeding
requires any party to take any action in the Texas Litigation during the Agreement Effective Period, (x) the Company Parties and the Consenting Senior Creditors each hereby agree to immediately seek an extension of such deadline, order, or
proceeding; (y) that the Company Parties may file motions to abate and/or stay the Texas Litigation, which motions shall not be opposed by the Consenting Senior Creditors; and (z) solely to the extent such deadline, order, or proceeding
has not been extended or stayed or the applicable proceeding has not been abated or stayed, the Company Parties may take any action necessary to preserve and protect their rights in such proceeding. 

6.02. Negative Commitments. Except as set forth in Section 7, during the Agreement Effective Period, each of the Company Parties
shall not directly or indirectly: 
 (a) (i) object to or otherwise commence any proceeding opposing any of the terms of this Agreement
(including the Restructuring Term Sheet) or (ii) commence any proceeding or prosecute, join in, or otherwise support any action to oppose, object to, or delay entry of the Confirmation Order; 

  
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 (b) take any action, or encourage any other person or Entity to take any action, that is
inconsistent in any material respect with, or is intended to frustrate or impede approval, implementation and consummation of the Restructuring Transactions described in, this Agreement (including the Restructuring Term Sheet) or the Plan; 

(c) modify the Plan, in whole or in part, in a manner that is not consistent with this Agreement (including the Restructuring Term Sheet) in
all material respects; or 
 (d) file any motion, pleading, or Definitive Documents with the Bankruptcy Court or any other court (including
any modifications or amendments thereof) that, in whole or in part, is not consistent with this Agreement (including the Restructuring Term Sheet) or the Plan. 

Section 7. Additional Provisions Regarding Company Parties’ Commitments. 

7.01. Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement shall require a Company Party or the board of
directors, board of managers, members, or any similar governing body of a Company Party, after consulting with counsel, to take any action or to refrain from taking any action with respect to the Restructuring Transactions to the extent taking or
failing to take such action would be inconsistent with applicable Law or its fiduciary obligations under applicable Law, and any such action or inaction pursuant to such exercise of fiduciary duties shall not be deemed to constitute a breach of this
Agreement. 
 7.02. Notwithstanding anything to the contrary in this Agreement, but subject to the terms of Sections 6.01(j) and 7.01, each
Company Party and their respective directors, officers, employees, investment bankers, attorneys, accountants, consultants, and other advisors or representatives shall have the rights to: (1) consider, respond to, and facilitate Alternative
Restructuring Proposals; (2) provide access to non-public information concerning any Company Party to any Entity or enter into confidentiality agreements or nondisclosure agreements with any Entity; (3) maintain or continue discussions or
negotiations with respect to Alternative Restructuring Proposals; (4) otherwise cooperate with, assist, participate in, or facilitate any inquiries, proposals, discussions, or negotiation of Alternative Restructuring Proposals; and
(5) enter into or continue discussions or negotiations with holders of Claims against or Equity Interests in a Company Party regarding the Restructuring Transactions or Alternative Restructuring Proposals. 

7.03. Nothing in this Agreement shall (a) be construed to prohibit any Company Party from contesting whether any matter, fact, or thing is
a breach of, or is inconsistent with, this Agreement, (b) be construed to prohibit any Company Party from appearing as a party in interest in any matter to be adjudicated in the Chapter 11 Cases, so long as such appearance and the
positions advocated in connection therewith are not materially inconsistent with this Agreement and are not for the purpose of delaying, interfering, impeding, or taking any other action to delay, interfere or impede, directly or indirectly, with
the Restructuring Transactions, (c) affect the ability of any Company Party to consult with any Consenting Stakeholder, (d) impair or waive the rights of any Company Party to assert or raise any objection permitted under this Agreement in
connection with the Restructuring Transactions, (e) prevent any Company Party from enforcing this Agreement, (f) require any Company Party to incur any material financial or other material liability other than as expressly described in
this Agreement, or (g) prohibit any Company Party from taking any action that is not inconsistent with this Agreement. 

  
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 Section 8. Transfer of Interests and Securities. 

8.01. During the Restricted Period, no Consenting Stakeholder shall Transfer any ownership (including any beneficial ownership as defined in
the Rule 13d-3 under the Securities Exchange Act of 1934, as amended) in any Company Claims/Interests to any affiliated or unaffiliated party, including any party in which it may hold a direct or indirect beneficial interest, unless: 

(a) in the case of any Company Claims/Interests, the transferee is either (1) a qualified institutional buyer as defined in Rule 144A of
the Securities Act, (2) a non-U.S. person in an offshore transaction as defined under Regulation S under the Securities Act, (3) an institutional accredited investor (as defined in the Rules), or (4) a Consenting Stakeholder; 

(b) either (i) the transferee executes and delivers to counsel to the Company Parties, at or before the time of the proposed Transfer, a
Transfer Agreement or (ii) the transferee is a Consenting Stakeholder; 
 (c) in the case of any Company Claims/Interests, the intended
transferee, the intended transferee’s affiliates, and/or any unaffiliated third-party in which the intended transferee has beneficial ownership,2 or any group of persons acting pursuant to a
plan or arrangement as described in Treasury Regulation Section 1.355-6(c)(4) (provided, however, that for purposes of this Section 8.01(c), none of the Consenting Stakeholders will be treated as acting pursuant to a plan or arrangement as
a result of participating in the Plan and Restructuring Transactions), will not, after giving effect to such Transfer, (A) have beneficial ownership of, in the aggregate, fifty percent (50%) or more of the Term Loan Credit Facility Claims
and PGN Claims or (B) have, assuming the Restructuring Transactions were to be consummated immediately upon such Transfer, beneficial ownership of, in the aggregate, fifty percent (50%) or more of the Reorganized iHeart Equity or the
equity interests in CCOH; and 
 (d) in the case of any Equity Interests, such Transfer shall not, in the reasonable determination of iHeart,
result in an “ownership change” of iHeart within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended. 

8.02. Upon compliance with the requirements of Section 8.01, the transferor shall be deemed to relinquish its rights (and be released from
its obligations) under this Agreement to the extent of the rights and obligations in respect of such transferred Company Claims/Interests. Any Transfer in violation of Section 8.01 shall be void ab initio and of no force or effect
without further action by any party or the intended transferee, regardless of any prior notice provided to counsel to the Company Parties. A Consenting Stakeholder that makes a Transfer pursuant to Section 8.01(b)(ii) shall provide notice of
such Transfer to the Company Parties as soon as reasonably practicable after such Transfer. 
  

	2 	 As used herein, the term “beneficial ownership” means the direct or indirect economic ownership of,
and/or the power, whether by contract or otherwise, to direct the exercise of the voting rights and the disposition of, the Company Claims/Interests or the right to acquire such Claims or Equity Interests.

  
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 8.03. This Agreement shall in no way be construed to preclude the Consenting Stakeholders from
acquiring additional Company Claims/Interests (subject to Section 8.01(c)); provided, however, that (i) any Consenting Stakeholder that acquires additional Company Claims/Interests during the term of this Agreement shall promptly
notify counsel to the Company Parties of such acquisition, including the amount of such acquisition; and (ii) such additional Company Claims/Interests shall automatically and immediately upon acquisition by a Consenting Stakeholder be deemed
subject to the terms of this Agreement (regardless of when or whether notice of such acquisition is given to counsel to the Company Parties or counsel to the Consenting Stakeholders). 

8.04. Notwithstanding anything herein to the contrary, to the extent that a Consenting Stakeholder effects the Transfer of all of its Company
Claims/Interests in accordance with this Agreement, such Consenting Stakeholder shall cease to be a Party to this Agreement in all respects and shall have no further obligations hereunder; provided, however, that if such Consenting
Stakeholder acquires a Company Claim/Interest at any point thereafter, it shall be deemed to be a Party to this Agreement on the same terms as if it had not effected a Transfer of all of its Company Claims/Interests. 

8.05. This Section 8 shall not impose any obligation on any Company Party to issue any “cleansing letter” or otherwise publicly
disclose information for the purpose of enabling a Consenting Stakeholder to Transfer any of its Company Claims/Interests. Notwithstanding anything to the contrary herein, to the extent a Company Party and another Party have entered into a
Confidentiality Agreement, the terms of such Confidentiality Agreement shall continue to apply and remain in full force and effect according to its terms, and this Agreement does not supersede any rights or obligations otherwise arising under such
Confidentiality Agreements. 
 8.06. Notwithstanding Section 8.01, a Qualified Marketmaker that acquires any Company Claims/Interests
with the purpose and intent of acting as a Qualified Marketmaker for such Company Claims/Interests shall not be required to execute and deliver a Transfer Agreement in respect of such Company Claims/Interests if (i) such Qualified Marketmaker
subsequently transfers such Company Claims/Interests (by purchase, sale assignment, participation, or otherwise) within ten (10) Business Days of its acquisition to a transferee that is an entity that is not an affiliate, affiliated fund, or
affiliated entity with a common investment advisor; (ii) the transferee otherwise is a Permitted Transferee under Section 8.01; and (iii) the transfer otherwise is a permitted transfer under Section 8.01. To the extent that a
Consenting Stakeholder is acting in its capacity as a Qualified Marketmaker, it may Transfer (by purchase, sale, assignment, participation, or otherwise) any right, title or interests in Company Claims/Interests that the Qualified Marketmaker
acquires from a holder of such Company Claims/Interests who is not a Consenting Stakeholder without the requirement that the transferee be a Permitted Transferee. 

8.07. Notwithstanding anything to the contrary in this Section 8, the restrictions on Transfer set forth in this Section 8 shall not
apply to the grant of any liens or encumbrances on any claims and interests in favor of a bank or broker-dealer holding custody of such claims and interests in the ordinary course of business and which lien or encumbrance is released upon the
Transfer of such claims and interests. 

  
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 Section 9. Representations and Warranties of Consenting Stakeholders. Each
Consenting Stakeholder severally, and not jointly, represents and warrants that, as of the date such Consenting Stakeholder executes and delivers this Agreement: 

(a) it (i) is either (A) the sole beneficial owner of the principal amount of the Company Claims/Interests set forth below its
signature to this Agreement, or (B) has (1) sole investment or voting discretion with respect to the principal amount of the Company Claims/Interests set forth below its signature to this Agreement, and (2) the power and authority to
bind the beneficial owner(s) of such Company Claims/Interests to the terms of this Agreement, and (ii) holds no Claims that are not identified below its signature hereto; 

(b) it has the full power and authority to vote and consent to matters expressly contemplated by this Agreement concerning such Company
Claims/Interests; 
 (c) such Company Claims/Interests are free and clear of any pledge, Lien, security interest, charge, claim, equity,
option, proxy, voting restriction, right of first refusal, or other limitation on disposition, transfer, or encumbrances of any kind, that would prohibit such Consenting Stakeholder from performing any of its obligations under this Agreement at the
time such obligations are required to be performed; 
 (d) it has the full power to vote, approve changes to, and transfer all of its Company
Claims/Interests referable to it as expressly required by this Agreement subject to applicable Law; 
 (e) solely with respect to holders of
Company Claims/Interests, (i) it is either (A) a qualified institutional buyer as defined in Rule 144A of the Securities Act, (B) not a U.S. person (as defined in Regulation S of the Securities Act) and is outside the United States
within the meaning of Regulation S, or (C) an institutional accredited investor (as defined in Rule 501(a)(1), (2), (3), or (7) under the Securities Act), and (ii) any securities acquired by the Consenting Stakeholder in
connection with the Restructuring Transactions will have been acquired for investment and not with a view to distribution or resale in violation of the Securities Act; 

(f) it will not beneficially or legally own, either directly or indirectly through its affiliates, any unaffiliated third-party in which it has
a beneficial ownership, or any group of persons acting pursuant to a plan or arrangement as described in Treasury Regulation Section 1.355-6(c)(4) (provided, however, that for purposes of this Section 9(f), none of the Consenting Creditors
will be treated as acting pursuant to a plan or arrangement as a result of participating in the Plan and Restructuring Transactions), in the aggregate, fifty percent (50%) or more of (A) the Term Loan Credit Facility Claims and PGN Claims
or (B) the Reorganized iHeart Equity (as defined in the Restructuring Term Sheet) or the equity interests in CCOH. 

  
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 Section 10. Representations and Warranties of Company Parties. Each Company
Party severally, and not jointly, represents and warrants that, as of the date such Company Party executes and delivers this Agreement: 

(a) to the best of its knowledge having made all reasonable inquiries, no order has been made, petition presented or resolution passed for the
winding up of or appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of it or any other Company Party, and no analogous procedure has been commenced in any
jurisdiction; and 
 (b) it has not entered into any arrangement (including with any individual creditor thereunder, irrespective of whether
it is or is to become a Consenting Creditor) on terms that are not reflected in the Restructuring Term Sheet. 
 Section 11. Mutual
Representations, Warranties, and Covenants. Each of the Parties represents, warrants, and covenants to each other Party, as of the date such Party executed and delivers this Agreement: 

(a) it is validly existing and in good standing under the Laws of the state of its organization, and this Agreement is a legal, valid, and
binding obligation of such Party, enforceable against it in accordance with its terms, except as enforcement may be limited by applicable Laws relating to or limiting creditors’ rights generally or by equitable principles relating to
enforceability; 
 (b) except as expressly provided in this Agreement (including the Restructuring Term Sheet), the Plan, and the Bankruptcy
Code, no consent or approval is required by any other person or entity in order for it to effectuate the Restructuring Transactions contemplated by, and perform its respective obligations under, this Agreement; 

(c) the entry into and performance by it of, and the transactions contemplated by, this Agreement do not, and will not, conflict in any
material respect with any Law or regulation applicable to it or with any of its articles of association, memorandum of association or other constitutional documents; 

(d) except as expressly provided in this Agreement, it has (or will have, at the relevant time) all requisite corporate or other power and
authority to enter into, execute, and deliver this Agreement and to effectuate the Restructuring Transactions contemplated by, and perform its respective obligations under, this Agreement; and 

(e) except as expressly provided by this Agreement, it is not party to any restructuring or similar agreements or arrangements with the other
Parties to this Agreement that have not been disclosed to all Parties to this Agreement. 
 Section 12. Termination Events.

 12.01. Consenting Stakeholder Termination Events. This Agreement may be terminated (a) with respect to the Consenting
Senior Creditors by the Required Consenting Senior Creditors, (b) with respect to the Consenting 2021 Noteholders by the Required Consenting 2021 Noteholders, and (c) with respect to the Consenting Sponsors by the Consenting Sponsors, in
each case, by the delivery to the Company Parties of a written notice in accordance with Section 17.11 hereof upon the occurrence and continuation of any of the following events: 

  
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 (a) the breach in any material respect by a Company Party of any of the representations,
warranties, or covenants of the Company Parties set forth in this Agreement that (i) is adverse to the Consenting Stakeholders seeking termination pursuant to this provision and (ii) remains uncured (to the extent curable) for ten
(10) Business Days after such terminating Consenting Stakeholders transmit a written notice in accordance with Section 17.11 hereof detailing any such breach; 

(b) the Company Parties (i) withdraw the Plan or (ii) publicly announce their intention not to support the Restructuring
Transactions; 
 (c) any Company Party determines, pursuant to Section 7.01, that a Company Party or the board of directors, board of
managers, members, or any similar governing body of a Company Party taking any action or refraining from taking any action with respect to the Restructuring Transactions would be inconsistent with applicable Law or its fiduciary obligations under
applicable Law; 
 (d) the issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction, of
any final, non-appealable ruling or order that (i) enjoins the consummation of a material portion of the Restructuring Transactions and (ii) remains in effect for fifteen (15) Business Days after such terminating Consenting
Stakeholders transmit a written notice in accordance with Section 17.11 hereof detailing any such issuance; provided, that this termination right may not be exercised by any Party that sought or requested such ruling or order in
contravention of any obligation set out in this Agreement; 
 (e) the Bankruptcy Court enters an order denying confirmation of the Plan; 

(f) the entry of an order by the Bankruptcy Court, or the filing of a motion or application by any Company Party seeking an order (without the
prior written consent of the Required Consenting Creditors and the Consenting Sponsors) (i) converting one or more of the Chapter 11 Cases of a Company Party to a case under chapter 7 of the Bankruptcy Code, (ii) appointing an examiner
with expanded powers beyond those set forth in sections 1106(a)(3) and (4) of the Bankruptcy Code or a trustee in one or more of the Chapter 11 Cases of a Company Party, (iii) vacating the (interim or final, as applicable) Financing
Order, (iv) rejecting this Agreement; or (v) dismissing one or more of the Chapter 11 Cases; 
 (g) the Bankruptcy Court
enters an order or in an oral decision delivered from the bench finding, determining, or concluding that the classification of the Junior Debt Claims under the Plan will not be approved by the Bankruptcy Court for any reason or does not comply with
the requirements of the Bankruptcy Code; 
 (h) the failure of any Milestone to occur as and when specified in the Restructuring Term Sheet;

  
 23 

 (i) a termination of the Company Parties’ right to consensually use cash collateral
following the occurrence of a Termination Event as defined in the (interim or final, as applicable) Financing Order; or 
 (j) solely with
respect to the Required Consenting Senior Creditors, if any Company Party does not immediately seek an extension of any deadline, order, or proceeding in the Texas Litigation that would require any party to take any action in the Texas Litigation
during the Agreement Effective Period. 
 12.02. Company Party Termination Events. Any Company Party may terminate this Agreement
as to all Parties upon prior written notice to all Parties in accordance with Section 17.11 hereof upon the occurrence of any of the following events: 

(a) the breach in any material respect by one or more of the Consenting Stakeholders of any provision set forth in this Agreement that remains
uncured for a period of ten (10) Business Days after the receipt by the Consenting Stakeholders of notice of such breach; provided that termination of this Agreement shall only be with respect to such breaching Party; provided
further that this Agreement may only be terminated as to all Parties if non-breaching Consenting Stakeholders with power to vote in favor of the Plan hold less than two-thirds of each of: (i) the
Term Loan Credit Facility Claims and the PGN Claims and (ii) the Junior Debt Claims, excluding any Junior Debt Claims held by Company Parties or their Affiliates who are not Consenting Sponsors (in each case, measured by notional value). 

(b) the board of directors, board of managers, or such similar governing body of any Company Party determines, after consulting with counsel,
(i) that proceeding with any of the Restructuring Transactions would be inconsistent with the exercise of its fiduciary duties or applicable Law or (ii) in the exercise of its fiduciary duties, to pursue an Alternative Restructuring
Proposal; 
 (c) if the Consenting Senior Creditors do not immediately seek an extension of any deadline, order, or proceeding in the Texas
Litigation that would require any party to take any action in the Texas Litigation during the Agreement Effective Period. 
 (d) the issuance
by any governmental authority, including any regulatory authority or court of competent jurisdiction, of any final, non-appealable ruling or order that (i) enjoins the consummation of a material portion of the Restructuring Transactions and
(ii) remains in effect for fifteen (15) Business Days after such terminating Company Party transmits a written notice in accordance with Section 17.11 hereof detailing any such issuance; provided, that this termination right
shall not apply to or be exercised by any Company Party that sought or requested such ruling or order in contravention of any obligation or restriction set out in this Agreement; or 

(e) the Bankruptcy Court enters an order denying confirmation of the Plan. 

12.03. Mutual Termination. This Agreement, and the obligations of all Parties hereunder, may be terminated by mutual written
agreement among all of the following: (a) the Required Consenting Creditors; (b) the Consenting Sponsors; and (c) each Company Party. 

  
 24 

 12.04. Automatic Termination. This Agreement shall terminate automatically without
any further required action or notice on the earlier of (i) the Outside Date and (ii) the Restructuring Effective Date. 
 12.05.
Effect of Termination. Except as set forth in Section 17.19, upon the occurrence of a Termination Date as to a Party, this Agreement shall be of no further force and effect as to such Party and each Party subject to such termination
shall be released from its commitments, undertakings, and agreements under or related to this Agreement and shall have the rights and remedies that it would have had, had it not entered into this Agreement, and shall be entitled to take all actions,
whether with respect to the Restructuring Transactions or otherwise, that it would have been entitled to take had it not entered into this Agreement, including with respect to any and all Claims or Causes of Action. Upon the occurrence of a
Termination Date prior to the Confirmation Order being entered by a Bankruptcy Court, any and all consents or ballots tendered by the Parties subject to such termination before a Termination Date shall be deemed, for all purposes, to be null and
void from the first instance and shall not be considered or otherwise used in any manner by the Parties in connection with the Restructuring Transactions and this Agreement or otherwise; provided, however, any Consenting Stakeholder withdrawing or
changing its vote pursuant to Section 5(h) shall promptly provide written notice of such withdrawal or change to each other Party to this Agreement and, if such withdrawal or change occurs on or after the Petition Date, file notice of such
withdrawal or change with the Bankruptcy Court. Nothing in this Agreement shall be construed as prohibiting a Company Party or any of the Consenting Stakeholders from contesting whether any such termination is in accordance with its terms or to seek
enforcement of any rights under this Agreement that arose or existed before a Termination Date. Except as expressly provided in this Agreement, nothing herein is intended to, or does, in any manner waive, limit, impair, or restrict (a) any
right of any Company Party or the ability of any Company Party to protect and reserve its rights (including rights under this Agreement), remedies, and interests, including its claims against any Consenting Stakeholder, and (b) any right of any
Consenting Stakeholder, or the ability of any Consenting Stakeholder, to protect and preserve its rights (including rights under this Agreement), remedies, and interests, including its claims against any Company Party or Consenting Stakeholder. No
purported termination of this Agreement shall be effective under this Section 12 or otherwise if the Party seeking to terminate this Agreement is in material breach of this Agreement, except a termination pursuant to Section 12.02(b) or
Section 12.02(e). Nothing in this Section 12.05 shall restrict any Company Party’s right to terminate this Agreement in accordance with Section 12.02(b) or Section 12.02(e). Notwithstanding anything in this Agreement to the
contrary, termination by the Consenting Sponsors shall constitute termination by any Affiliate of a Consenting Sponsor that holds Term Loan Credit Facility Claims or PGN Claims unless otherwise agreed to by the Consenting Sponsor. 

Section 13. Release Support. 

13.01. Each Consenting Stakeholder shall (a) support, and shall not directly or indirectly object to or commence, join, or otherwise
support any proceeding or action opposing, the releases set forth in the Plan, (b) to the extent it is permitted to elect whether to opt out of the releases set forth in the Plan, elect not to opt out of the releases set forth in the Plan by
timely delivering its duly executed and completed ballot(s) indicating such election, and (c) not change, withdraw, amend, or revoke (or cause to be changed, withdrawn, amended, or revoked) any election referred to in the immediately preceding
clause (b). 

  
 25 

 Section 14. Consistent Alternative Proposal. Each
Consenting Stakeholder (severally and not jointly) agrees in respect of all of its Company Claims/Interests to support, and to not directly or indirectly object to or commence, join, or otherwise support any proceeding or action opposing, any
Consistent Alternative Proposal, to the same extent as with respect to the Restructuring Transactions under this Agreement. For the avoidance of doubt, any and all Parties’ rights, claims, and defenses with respect to whether an Alternative
Restructuring Proposal is a Consistent Alternative Proposal are reserved, including any right to challenge total enterprise value, and nothing herein shall be deemed as barring any party from bringing any action to determine whether or not any such
Alternative Restructuring Proposal is a Consistent Alternative Proposal. 
 Section 15. Cooperation. 

15.01. During the Chapter 11 Cases, the Company Parties and the Consenting Stakeholders shall use reasonable best efforts to provide counsel to
the Parties with advanced drafts of all material motions, applications, and other documents that the Company Parties or the Consenting Stakeholders intend to file with the Bankruptcy Court, as soon as reasonably practicable under the circumstances.

 Section 16. Amendments and Waivers. 

(a) This Agreement may not be modified, amended, or supplemented, and no condition or requirement of this Agreement may be waived, in any
manner except in accordance with this Section 16. 
 (b) This Agreement may be modified, amended, or supplemented, or a condition or
requirement of this Agreement may be waived, in a writing signed by: (a) each Company Party and (b) the following Parties, solely with respect to any modification, amendment, waiver or supplement that adversely affects the rights,
obligations, or treatment of such Parties and unless otherwise specified in this Agreement: (i) the Required Consenting 2021 Noteholders; (ii) the Required Consenting Senior Creditors, and (iii) the Consenting Sponsors;
provided, however, that if the proposed modification, amendment, waiver, or supplement has a material, disproportionate (as compared to other Consenting Stakeholders holding Company Claims/Interests within the same class as provided
for in the Restructuring Term Sheet) and adverse effect on any of the Company Claims/Interests held by a Consenting Stakeholder (including, without limitation, any disparate treatment with respect to the releases set forth in Section 13), then
the consent of each such affected Consenting Stakeholder shall also be required to effectuate such modification, amendment, waiver, or supplement, and provided further, however, that any proposed modification, amendment, waiver,
or supplement that (i) increases the Supplemental Term Loan/2019 PGN Distribution (as defined in the Restructuring Term Sheet) to the class of Term Loan Credit Facility Claims and 2019 PGN Claims shall require the consent of each Consenting
Senior Creditor that holds Other PGN Claims; and (ii) decreases the Supplemental Term Loan/2019 PGN Distribution to the class of Term Loan Credit Facility Claims and 2019 PGN Claims shall require the consent of each Consenting Senior Creditor
that 

  
 26 

 
holds Term Loan Credit Facility Claims or 2019 PGN Claims. The waiver or amendment of the Outside Date shall require the agreement of each Consenting Stakeholder and the Company Parties,
provided that if the Parties have otherwise complied with the terms of the Definitive Documents and all other events and actions necessary for the occurrence of the Restructuring Effective Date have occurred other than the receipt of
regulatory or other approval of a governmental unit necessary for the occurrence of the Restructuring Effective Date, the Outside Date may be extended with the consent of the Company Parties and the Required Consenting Creditors. 

(c) Any proposed modification, amendment, waiver or supplement that does not comply with this Section 16 shall be ineffective and
void ab initio. 
 (d) The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed
as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy under this Agreement shall operate as a waiver
of any such right, power or remedy or any provision of this Agreement, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise of such right, power or remedy or the exercise of any
other right, power or remedy. All remedies under this Agreement are cumulative and are not exclusive of any other remedies provided by Law. 

Section 17. Miscellaneous. 

17.01. Acknowledgement. Notwithstanding any other provision herein, this Agreement is not and shall not be deemed to be an offer with
respect to any securities or solicitation of votes for the acceptance of a plan of reorganization for purposes of sections 1125 and 1126 of the Bankruptcy Code or otherwise. Any such offer or solicitation will be made only in compliance
with all applicable securities Laws, provisions of the Bankruptcy Code, and/or other applicable Law. 
 17.02. Exhibits Incorporated by
Reference; Conflicts. Each of the exhibits, annexes, signatures pages, and schedules attached hereto is expressly incorporated herein and made a part of this Agreement, and all references to this Agreement shall include such exhibits, annexes,
and schedules. In the event of any inconsistency between this Agreement (without reference to the exhibits, annexes, and schedules hereto) and the exhibits, annexes, and schedules hereto, this Agreement (without reference to the exhibits, annexes,
and schedules thereto) shall govern. 
 17.03. Publicity. As soon as reasonably practicable following the date hereof, the Company
Parties shall disseminate a press release disclosing the existence of this Agreement and the terms hereof and of the Plan (including any schedules and exhibits thereto that are filed with the Bankruptcy Court on the Petition Date), but without
executed signature pages and with such redactions as may be reasonably requested by counsel to any Party to maintain the confidentiality of the Parties. The Company Parties shall submit drafts to counsel to the Consenting Stakeholders of any press
releases and public documents that constitute disclosure of the existence or terms of this Agreement or any amendment to the terms of this Agreement at least three (3) calendar days prior to making any such disclosure and shall afford them a
reasonable opportunity under the circumstances to comment on such documents and disclosures, final versions of which shall be reasonably satisfactory to the Requisite Consenting Creditors. 

  
 27 

 17.04. Further Assurances. Subject to the other terms of this Agreement, the Parties
agree to execute and deliver such other instruments and perform such acts, in addition to the matters herein specified, as may be reasonably appropriate or necessary, or as may be required by order of the Bankruptcy Court, from time to time, to
effectuate the Restructuring Transactions, as applicable. 
 17.05. Complete Agreement. Except as otherwise explicitly provided
herein, this Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements, whether oral or written, among the Parties with respect
thereto, other than any Confidentiality Agreement. 
 17.06. GOVERNING LAW; SUBMISSION TO JURISDICTION; SELECTION OF FORUM. THIS
AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. Each Party
hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement, to the extent possible, in the Bankruptcy Court, and solely in connection with claims arising under this Agreement:
(a) irrevocably submits to the exclusive jurisdiction of the Bankruptcy Court; (b) waives any objection to laying venue in any such action or proceeding in the Bankruptcy Court; and (c) waives any objection that the Bankruptcy Court
is an inconvenient forum or does not have jurisdiction over any Party hereto. 
 17.07. TRIAL BY JURY WAIVER. EACH PARTY HERETO
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

17.08. Execution of Agreement. This Agreement may be executed and delivered in any number of counterparts and by way of electronic
signature and delivery, each such counterpart, when executed and delivered, shall be deemed an original, and all of which together shall constitute the same agreement. Except as expressly provided in this Agreement, each individual executing
this Agreement on behalf of a Party has been duly authorized and empowered to execute and deliver this Agreement on behalf of said Party. 

17.09. Rules of Construction. This Agreement is the product of negotiations among the Company Parties and the Consenting
Stakeholders, and in the enforcement or interpretation hereof, is to be interpreted in a neutral manner, and any presumption with regard to interpretation for or against any Party by reason of that Party having drafted or caused to be drafted this
Agreement, or any portion hereof, shall not be effective in regard to the interpretation hereof. The Company Parties and the Consenting Stakeholders were each represented by counsel during the negotiations and drafting of this Agreement and continue
to be represented by counsel. 

  
 28 

 17.10. Successors and Assigns; Third Parties. This Agreement is intended to bind and
inure to the benefit of the Parties and their respective successors and permitted assigns, as applicable. There are no third party beneficiaries under this Agreement, and the rights or obligations of any Party under this Agreement may not be
assigned, delegated, or transferred to any other person or entity.
 17.11. Notices. All notices hereunder shall be deemed given if in
writing and delivered, if sent by electronic mail, courier, or registered or certified mail (return receipt requested) to the following addresses (or at such other addresses as shall be specified by like notice): 

 

	 	(a)	if to a Company Party, to: 

 iHeartMedia, Inc. 

20880 Stone Oak Parkway 
 San
Antonio, Texas, 78258 
 Attention: Robert Walls, General Counsel 

with copies for information only (which shall not constitute notice) to: 

Kirkland & Ellis LLP 

300 North LaSalle Street 

Chicago, IL 60654 
 Attention:
Anup Sathy, P.C., William A. Guerrieri, Brian D. Wolfe, and Benjamin M. Rhode 
 E-mail address: anup.sathy@kirkland.com;
will.guerrieri@kirkland.com; 
 brian.wolfe@kirkland.com; and benjamin.rhode@kirkland.com 

  
 29 

 and 

Kirkland & Ellis LLP 

601 Lexington Avenue 
 New York,
New York 10022 
 Attention: Christopher J. Marcus, P.C. and AnnElyse S. Gibbons 

E-mail address: christopher.marcus@kirkland.com and annelyse.gibbons@kirkland.com 

if to a Consenting Creditor that is a member of the Term Loan/PGN Group, to the notice details identified on that Consenting
Creditor’s signature page to this Agreement or its Transfer Agreement, with a copy (which shall not constitute notice unless otherwise specified herein) to: 

Jones Day 
 555 South Flower
Street 
 Fiftieth Floor 
 Los
Angeles, California 90071 
 Attention: Bruce Bennett, Joshua M. Mester, and James Johnston 

Email address: bbennett@jonesday.com; jmester@jonesday.com; 

jjohnston@jonesday.com 
 (b) if to
a Consenting Creditor that is a member of the Term Lender Group, to the notice details identified on that Consenting Creditor’s signature page to this Agreement or its Transfer Agreement, with a copy (which shall not constitute notice unless
otherwise specified herein) to: 
 Arnold & Porter Kaye Scholer LLP 

70 W. Madison Street 
 Chicago, IL
60602 
 Attention: Michael D. Messersmith 

Email address: michael.messersmith@arnoldporter.com 

and 
 Arnold & Porter
Kaye Scholer LLP 
 250 W. 55th Street 

New York, NY 10019 
 Attention:
Alan Glantz 
 E-mail address: alan.glantz@arnoldporter.com 

  
 30 

 (c) if to a Consenting 2021 Noteholder that is a member of the 2021 Noteholder Group, to the
notice details identified on that Consenting Creditor’s signature page to this Agreement or its Transfer Agreement, with a copy (which shall not constitute notice unless otherwise specified herein) to 

Gibson, Dunn & Crutcher LLP 

333 South Grand Avenue 
 Los
Angeles, California 90071 
 Attention: Robert Klyman and Matthew J. Williams 

Email address: rklyman@gibsondunn.com; mjwilliams@gibsondunn.com 

(d) if to a Consenting Sponsor, to the notice details identified on that Consenting Sponsor’s signature page to this Agreement or its
Transfer Agreement, with a copy (which shall not constitute notice unless otherwise specified herein) to 
 Weil, Gotshal & Manges
LLP 
 767 Fifth Avenue 
 New
York, New York 10153 
 Attention: Matthew S. Barr, Jacqueline Marcus, and Gabriel A. Morgan 

Email address: matt.barr@weil.com; Jacqueline.marcus@weil.com; and Gabriel.morgan@weil.com 

(e) if to any other Consenting Stakeholder, at the address, facsimile number, or email address set forth on the signature page for such
Consenting Stakeholder. 
 Any notice given by delivery, mail, or courier shall be effective when received. 

17.12. Independent Due Diligence and Decision Making. Each Consenting Stakeholder hereby confirms that its decision to execute this
Agreement has been based upon its independent investigation of the operations, businesses, financial and other conditions, and prospects of the Company Parties. 

17.13. Enforceability of Agreement. Each of the Parties to the extent enforceable waives any right to assert that the exercise of
termination rights under this Agreement is subject to the automatic stay provisions of the Bankruptcy Code, and expressly stipulates and consents hereunder to the prospective modification of the automatic stay provisions of the Bankruptcy Code for
purposes of exercising termination rights under this Agreement, to the extent the Bankruptcy Court determines that such relief is required. 

17.14. Waiver. If the Restructuring Transactions are not consummated, or if this Agreement is terminated for any reason, the Parties
fully reserve any and all of their rights, remedies, claims, and defenses. This Agreement is part of a proposed settlement of matters that could otherwise be the subject of litigation among the Parties hereto. Nothing herein shall be deemed an
admission of any kind. Pursuant to Federal Rule of Evidence 408 and any other applicable rules of evidence, this Agreement and all negotiations relating hereto shall not be admissible into evidence in any proceeding other than a proceeding to
enforce its terms or the payment of damages to which a Party may be entitled under this Agreement. 

  
 31 

 17.15. Specific Performance. It is understood and agreed by the Parties that money damages
would be an insufficient remedy for any breach of this Agreement by any Party, and each non-breaching Party shall be entitled to specific performance and injunctive or other equitable relief (without the posting of any bond and without proof of
actual damages) as a remedy of any such breach, including an order of the Bankruptcy Court or other court of competent jurisdiction requiring any Party to comply promptly with any of its obligations hereunder. 

17.16. Relationship Among Parties. Except where otherwise specified, the agreements, representations, warranties, and obligations of the
Parties under this Agreement are, in all respects, several and not joint. No Party shall, as a result of its entering into and performing its obligations under this Agreement, be deemed to be part of a “group” (as that term is used in
section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder) with any of the other Parties. It is understood and agreed that no Consenting Stakeholder has any duty of trust or confidence in
any kind or form with any other Consenting Stakeholder, and, except as expressly provided in this Agreement, there are no commitments among or between them. In this regard, it is understood and agreed that any Consenting Stakeholder may trade in the
Company Claims/Interests without the consent of the Company Parties, any other Consenting Stakeholder, subject to applicable securities laws, the terms of this Agreement, and the terms of the Term Loan Credit Facility, PGNs, or 2021 Notes, as
applicable; provided, however, that no Consenting Stakeholder shall have any responsibility for any such trading to any other entity by virtue of this Agreement. No prior history, pattern, or practice of sharing confidences among or
between the Consenting Stakeholders shall in any way affect or negate this understanding and agreement. 
 17.17. Severability and
Construction. If any provision of this Agreement shall be held by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions shall remain in full force and effect if essential terms and conditions of
this Agreement for each Party remain valid, binding, and enforceable. 
 17.18. Remedies Cumulative. All rights, powers, and remedies
provided under this Agreement or otherwise available in respect hereof at Law or in equity shall be cumulative and not alternative, and the exercise of any right, power, or remedy thereof by any Party shall not preclude the simultaneous or later
exercise of any other such right, power, or remedy by such Party. 
 17.19. Survival. Notwithstanding (a) any Transfer of any
Company Claims/Interests in accordance with Section 8 or (b) the termination of this Agreement in accordance with its terms, the agreements and obligations of the Parties in Section 17 and the Confidentiality Agreements shall survive
such Transfer and/or termination and shall continue in full force and effect for the benefit of the Parties in accordance with the terms hereof and thereof. 

17.20. Capacities of Consenting Stakeholders. Each Consenting Stakeholder has entered into this agreement on account of all Company
Claims/Interests that it holds (directly or through discretionary accounts that it manages or advises) and, except where otherwise specified in this Agreement, shall take or refrain from taking all actions that it is obligated to take or refrain
from taking under this Agreement with respect to all such Company Claims/Interests. 

  
 32 

 17.21. Consents and Acceptances. Where a written consent, acceptance, or approval is
required pursuant to or contemplated by this Agreement, pursuant to Section 3.02, Section 16, or otherwise, including a written approval by the Company Parties, the Required Consenting Creditors, or the Consenting Sponsors, such written
consent, acceptance, or approval shall be deemed to have occurred if, by agreement between counsel to the Parties submitting and receiving such consent, acceptance, or approval, it is conveyed in writing (including electronic mail) between each such
counsel without representations or warranties of any kind on behalf of such counsel. 
 17.22. Accession. After the date hereof,
additional holders of Term Loan Credit Facility Claims, PGN Claims, 2021 Note Claims, and Equity Interests may become Consenting Stakeholders by agreeing in writing to be bound by the terms of this Agreement by executing a counterpart signature page
to this Agreement and delivering such signature page in accordance with Section 17.11 of this Agreement. 
 IN WITNESS WHEREOF,
the Parties hereto have executed this Agreement on the day and year first above written. 

  
 33 

 Company Parties’ Signature Page to 

the Restructuring Support Agreement 

AM/FM BROADCASTING LICENSES, LLC 
 AM/FM BROADCASTING,
INC. 
 AM/FM OPERATING, INC. 
 AM/FM RADIO
LICENSES, LLC 
 AM/FM TEXAS BROADCASTING, LP 

AM/FM TEXAS LICENSES, LLC 
 AM/FM TEXAS, LLC 

CAPSTAR RADIO OPERATING COMPANY 
 CAPSTAR TX, LLC

 CC BROADCAST HOLDINGS, INC. 
 CC FINCO
HOLDINGS, LLC 
 CC LICENSES, LLC 
 CHRISTAL RADIO
STATIONS, INC. 
 CINE GUARANTORS II, INC. 

CITICASTERS CO. 
 CITICASTERS LICENSES, INC. 

CLEAR CHANNEL BROADCASTING LICENSES, INC. 
 CLEAR
CHANNEL HOLDINGS, INC. 
 CLEAR CHANNEL INVESTMENTS, INC. 

CLEAR CHANNEL METRO, LLC 
 CLEAR CHANNEL MEXICO
HOLDINGS, INC. 
 CLEAR CHANNEL REAL ESTATE, LLC 

CRITICAL MASS MEDIA, INC. 
 IHEARTCOMMUNICATIONS, INC.

 IHEARTMEDIA + ENTERTAINMENTS, INC. 

IHEARTMEDIA CAPITAL I, LLC 
 IHEARTMEDIA CAPITAL II, LLC

 IHEARTMEDIA MANAGEMENT SERVICES, INC. 
 IHM
IDENTITY, INC. 
 KATZ COMMUNICATIONS, INC. 
 KATZ
MEDIA GROUP, INC. 
 KATZ MILLENNIUM SALES & MARKETING, INC. 

KATZ NET RADIO SALES, INC. 
 M STREET CORPORATION

 PREMIERE NETWORKS, INC. 
 TERRESTRIAL RF
LICENSING, INC. 
 TTWN MEDIA NETWORKS, LLC 
 TTWN
NETWORKS, LLC 
 IHEARTMEDIA, INC. 
  

			
	By:	 	 /s/ Robert H. Walls, Jr.

			
	Name: Robert H. Walls, Jr.
	Authorized Signatory

 EXHIBIT A 

Term Sheet 
 Execution
Version 
  
  

IHEARTMEDIA, INC., ET AL. 

RESTRUCTURING TERM SHEET 

March 16, 2018 
  

 
 This Term Sheet (including the
exhibits attached hereto, the “Term Sheet”)1 sets forth the principal terms of a financial restructuring (the “Restructuring”) of the existing debt, existing
equity interests in, and certain other obligations of iHeartMedia, Inc. (“iHeart”) on behalf of itself and certain of its subsidiaries listed on Annex 1 hereto (collectively with iHeart, the “Company
Parties”), through a chapter 11 plan of reorganization (the “Plan”) to be filed by the Company Parties in connection with commencing cases (the “Chapter 11 Cases”) in the United
States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”). Following the occurrence of the
Restructuring Effective Date, iHeart shall be referred to herein as “Reorganized iHeart”. 
 THIS TERM SHEET DOES NOT CONSTITUTE (NOR
SHALL IT BE CONSTRUED AS) AN OFFER WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF ACCEPTANCES OR REJECTIONS AS TO ANY EXCHANGE OR PLAN OF REORGANIZATION, IT BEING UNDERSTOOD THAT SUCH A SOLICITATION, IF ANY, SHALL BE MADE ONLY IN COMPLIANCE
WITH SECTION 4(A)(2) OF THE SECURITIES ACT OF 1933 AND/OR SECTION 1145 OF THE BANKRUPTCY CODE AND APPLICABLE PROVISIONS OF SECURITIES, BANKRUPTCY, AND/OR OTHER APPLICABLE STATUTES, RULES, AND LAWS. 

THIS TERM SHEET DOES NOT ADDRESS ALL MATERIAL TERMS THAT WOULD BE REQUIRED IN CONNECTION WITH ANY POTENTIAL RESTRUCTURING AND ANY AGREEMENT IS SUBJECT TO
THE EXECUTION OF DEFINITIVE DOCUMENTATION IN FORM AND SUBSTANCE CONSISTENT WITH THIS TERM SHEET AND OTHERWISE REASONABLY ACCEPTABLE TO THE CONSENTING STAKEHOLDERS AND THE COMPANY PARTIES (EACH AS DEFINED HEREIN) IN THE MANNER SET FORTH IN THE RSA.

 THIS TERM SHEET HAS BEEN PRODUCED FOR DISCUSSION AND SETTLEMENT PURPOSES ONLY AND IS SUBJECT TO RULE 408 OF THE FEDERAL RULES OF EVIDENCE AND
OTHER SIMILAR APPLICABLE STATE AND FEDERAL STATUTES, RULES, AND LAWS. THIS TERM SHEET AND THE INFORMATION CONTAINED HEREIN ARE STRICTLY CONFIDENTIAL AND SHALL NOT BE SHARED WITH ANY OTHER PARTY WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY
PARTIES. 
  

	1 	Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Restructuring Support Agreement (the “RSA”) to which this Term Sheet is attached as Exhibit
A. 

			
	Restructuring Summary
		
	Separation of CCOH	  	Upon the Restructuring Effective Date, and as further described below, Clear Channel Outdoor Holdings, Inc. (“CCOH”) will be separated or spun-off from the Company Parties and
the holders of the Term Loan Credit Facility Claims and PGN Claims will become the holders of the economic interests in CCOH currently held by the Company Parties (or their subsidiaries).
		
	Post-Emergence Capital Structure	  	 As of the Restructuring Effective Date, the Company Parties’ pro forma exit capital structure will consist of the following:

 
 •  New ABL Facility. A
senior secured asset-based revolving credit facility (the “New ABL Facility”) on terms reasonably acceptable to the Company Parties and the Required Consenting Senior Creditors, and set forth in a supplement to the Plan, sufficient
to fund the distributions required by the Plan.
  

•  New Secured Debt. $5,750 million in principal amount of secured debt on terms
reasonably acceptable to the Company Parties and the Required Consenting Senior Creditors, and set forth in a supplement to the Plan (the “New Secured Debt”). The Company Parties and the Required Consenting Senior Creditors
shall consult with the 2021 Noteholder Group and the Consenting Sponsors with respect to the terms of the New Secured Debt.
  

•  Reorganized iHeart Equity/Warrants. Reorganized iHeart shall issue equity (the
“Reorganized iHeart Equity”) on the Restructuring Effective Date to holders of Term Loan Credit Facility Claims, PGN Claims, 2021 Notes Claims, Legacy Notes Claims, and holders of Equity Interests in iHeart in the amounts set forth
below (in each case, subject to dilution by the Post-Emergence Equity Incentive Program).2

	
	Proposed Treatment of Claims and Interests Under the Plan
		
	DIP Claims	  	On the Restructuring Effective Date, each holder of an allowed DIP Claim shall receive, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for such claim, payment in full in cash on the
Restructuring Effective Date.
		
	Administrative, Priority Tax, Other Priority Claims, and Other Secured Claims	  	On or as soon as reasonably practicable following the Restructuring Effective Date, each holder of an administrative, priority tax, other priority claim, or other secured claim will receive, in full and final satisfaction,
compromise, settlement, release, and discharge of and in exchange for such claim:

 

	2 	Shares of Reorganized iHeart Equity (“Reorganized iHeart Common Stock”) will only be issued on the Restructuring Effective Date to those holders of such claims who have provided a written certification
sufficient to enable the Company Parties to determine (a) the extent to which direct and indirect voting and equity interests of the certifying party are held by non-U.S. persons, as determined under
section 310(b) of Chapter 5 of Title 47 of the United States Code, 47 U.S.C. § 151 et seq., as amended (the “Communications Act”) and the Federal Communication Commission’s (the “FCC”) rules and
(b) whether the holding of more than 4.99% of Reorganized iHeart Equity by the certifying party would result in a violation of FCC ownership rules or be inconsistent with FCC approval. Holders of such claims who do not meet this criteria will
be issued special warrants (“Special Warrants”) to purchase shares of Reorganized iHeart Common Stock, which can, or will automatically under certain circumstances, be exercised to purchase Reorganized iHeart Common Stock.
Additional details regarding the Special Warrants and the Reorganized iHeart Common Stock and details regarding the equity allocation mechanism will be set forth in the Plan. 

  
 36 

			
		  	 (a)   payment in full in cash;

 
 (b)   reinstatement pursuant to
section 1124 of the Bankruptcy Code;
  

(c)   delivery of the collateral securing any such secured claim and payment of any interest
required under section 506(b) of the Bankruptcy Code; or
  

(d)   such other treatment rendering such claim unimpaired.

		
	ABL Facility Claims	  	 As of the date hereof, the total outstanding principal amount of the Company Parties’ obligations under iHeart’s receivables based
credit facility (the “ABL Facility”) is $371 million (plus prepetition accrued interest).
  

To the extent not already satisfied in full during the chapter 11 cases, on or as soon as reasonably practicable following the Restructuring Effective Date,
each holder of a Claim on account of the ABL Facility (each, an “ABL Facility Claim”) will, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for such ABL Facility Claim, be reinstated
pursuant to section 1124 of the Bankruptcy Code or receive payment in full in cash.

		
	Term Loan Credit Facility Claims and 2019 PGN Claims	  	 As of the date hereof, the total outstanding principal amount of the Company Parties’ obligations under the Term Loan Credit Facility is
$6,300 million (plus prepetition accrued interest) and the total outstanding principal amount of the Company Parties’ obligations under the 2019 PGNs is $2,000 million (plus prepetition accrued interest).

 
 On or as soon as reasonably practicable following the Restructuring Effective Date, each
holder of a Term Loan Credit Facility Claim or 2019 PGN Claim (other than any Company Party, which has waived such distribution pursuant to the section below entitled “Intercompany Claims”) will receive, in full and final satisfaction,
compromise, settlement, release, and discharge of and in exchange for such Term Loan Credit Facility Claim or 2019 PGN Claim, its pro rata share and interest in (the “Supplemental Term Loan/2019 PGN Distribution”):

 
 (a)   $131 million in
principal amount of New Secured Debt to be issued by Reorganized iHeart pursuant to the Plan upon the occurrence of the Restructuring Effective Date; and
  

(b)   a distribution of (i) Special Warrants, (ii) Reorganized iHeart Common Stock, or
(iii) a combination of Special Warrants and Reorganized iHeart Common Stock, which (inclusive of the shares of Reorganized iHeart Common Stock that may be received in connection with the exercise of the Special Warrants) will constitute, in the
aggregate, 2.21 percent of the Reorganized iHeart Common Stock, subject to dilution on account of the Post-Emergence Equity Incentive Program (as defined below); plus

 
 its pro rata share (calculated together with the Other PGN Claims) and interest
in:
  

(c)   $5,419 million in principal amount of New Secured Debt to be issued by Reorganized iHeart
pursuant to the Plan upon the occurrence of the Restructuring Effective Date;
  

(d)   all excess cash estimated after payment of, among other things, all Restructuring Transaction
costs and after consideration of a reserve for minimum liquidity for Reorganized iHeart, which reserve shall be in an amount agreed upon between the Company Parties and the Required Consenting Senior Creditors by the date of the entry of an order
approving the Disclosure Statement;

  
 37 

			
		  	 (e)   a distribution of (i) Special Warrants, (ii) Reorganized iHeart
Common Stock, or (iii) a combination of Special Warrants and Reorganized iHeart Common Stock, which (inclusive of the shares of Reorganized iHeart Common Stock that may be received in connection with the exercise of the Special Warrants) will
constitute, in the aggregate, 91.79 percent of the Reorganized iHeart Common Stock, subject to dilution on account of the Post-Emergence Equity Incentive Program (as defined below); and

 
 (f)   100 percent of the
common equity in CCOH owned by the Company Parties or their subsidiaries (the “CCOH Equity”).3

		
	Other PGN Claims	  	 As of the date hereof, the total outstanding principal amount of the Company Parties’ obligations under the Other PGNs is
$4,752 million (plus prepetition accrued interest).
  
 On or as soon as reasonably
practicable following the Restructuring Effective Date, each holder of an Other PGN Claim (other than any Company Party, which has waived such distribution pursuant to the section below entitled “Intercompany Claims”) will receive, in full
and final satisfaction, compromise, settlement, release, and discharge of and in exchange for such Other PGN Claim, its pro rata share (calculated together with the Term Loan Credit Facility Claims and 2019 PGN Claims) and interest in:

 
 (a)   $5,419 million in
principal amount of New Secured Debt to be issued by Reorganized iHeart pursuant to the Plan upon the occurrence of the Restructuring Effective Date;
  

(b)   all excess cash estimated after payment of, among other things, all Restructuring Transaction
costs and after consideration of a reserve for minimum liquidity for Reorganized iHeart, which reserve shall be in an amount agreed upon between the Company Parties and the Required Consenting Senior Creditors by the date of the entry of an order
approving the Disclosure Statement;
  

(c)   a distribution of (i) Special Warrants, (ii) Reorganized iHeart Common Stock, or
(iii) a combination of Special Warrants and Reorganized iHeart Common Stock, which (inclusive of the shares of Reorganized iHeart Common Stock that may be received in connection with the exercise of the Special Warrants) will constitute, in the
aggregate, 91.79 percent of the Reorganized iHeart Common Stock, subject to dilution on account of the Post-Emergence Equity Incentive Program (as defined below); and
  

(d)   100 percent of the common equity in CCOH owned by the Company Parties or their
subsidiaries (the “CCOH Equity”).3

		
	2021 Notes Claims and Legacy Notes Claims	  	The 2021 Notes Claims and Legacy Notes Claims shall be classified together under the Plan.

 

	3 	Reflects Company Parties’ or their subsidiaries’ ownership in CCOH (e.g., 100% = 89.5% direct ownership). Assumes percentage of CCOH ownership held publicly remains outstanding. 

  
 38 

			
		  	 As of the date hereof, the total outstanding principal amount of the Company Parties’ obligations under the 2021 Notes is
$2,235 million (plus prepetition accrued interest). As of the date hereof, the total outstanding principal amount of the Company Parties’ obligations under the Legacy Notes is $532 million (plus prepetition accrued interest).

 
 On or as soon as reasonably practicable following the Restructuring Effective Date, each
holder of a 2021 Notes Claim or Legacy Claim (other than any Company Party, which has waived such distribution pursuant to the section below entitled “Intercompany Claims”) will receive, in full and final satisfaction, compromise,
settlement, release, and discharge of and in exchange for such 2021 Notes Claim or Legacy Claim, its pro rata share and interest in:
  

(a)   $200 million in principal amount of New Secured Debt to be issued by Reorganized iHeart
pursuant to the Plan upon the occurrence of the Restructuring Effective Date; and
  

(b)   a distribution of (i) Special Warrants, (ii) Reorganized iHeart Common Stock, or
(iii) a combination of Special Warrants and Reorganized iHeart Common Stock, which (inclusive of the shares of Reorganized iHeart Common Stock that may be received in connection with the exercise of the Special Warrants) will constitute, in the
aggregate, 5.0 percent of the Reorganized iHeart Common Stock, subject to dilution on account of the Post-Emergence Equity Incentive Program (as defined below). Any Special Warrants shall have a nominal exercise price.

		
	General Unsecured Claims	  	To be agreed to among the Company Parties and the Required Consenting Senior Creditors.
		
	Equity Interests	  	On or as soon as reasonably practicable following the Restructuring Effective Date, each holder of an Equity Interest will receive, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange
for such Equity Interest, its pro rata share and interest in a distribution of (i) Special Warrants, (ii) Reorganized iHeart Common Stock, or (iii) a combination of Special Warrants and Reorganized iHeart Common Stock, which
(inclusive of the shares of Reorganized iHeart Common Stock that may be received in connection with the exercise of the Special Warrants) will constitute, in the aggregate, 1.0 percent of the Reorganized iHeart Common Stock, subject to dilution
on account of the Post-Emergence Equity Incentive Program (as defined below)
		
	CCOH Due From Claims	  	All claims held by CCOH against iHeartCommunications, Inc., one of the Company Parties, pursuant to the terms of the intercompany revolving promissory note (the “CCOH Due From Claims”) will receive treatment in a
form and substance acceptable to the Company Parties, CCOH, and the Required Consenting Senior Creditors.
		
	Section 510(b) Claims	  	On the Restructuring Effective Date, all claims arising under section 510(b) of the Bankruptcy Code shall be discharged without any distribution.
		
	Intercompany Claims	  	All claims held by one Company Party or an affiliate in any other Company Party or an affiliate (other than Term Loan Credit Facility Claims, PGN Claims, 2021 Notes Claims, or Legacy Notes Claims, or CCOH Due From Claims held by a
Company Party or an affiliate) will be, at the option of Reorganized iHeart with the consent of the Required Consenting Senior Creditors, either (a) reinstated or (b) cancelled without any distribution on account of such
interests.

  
 39 

			
		
		  	All PGN Claims, 2021 Notes Claims, and Legacy Notes Claims4 held by a Company Party will be cancelled without any distribution on account of such interests.
		
	Intercompany Interests	  	All interests held by one Company Party in any other Company Party will be, at the option of iHeart, either (a) reinstated or (b) cancelled without any distribution on account of such interests. 
	
	Implementation
		
	CCOH Separation	  	The Company Parties and the Required Consenting Senior Creditors shall negotiate in good faith the definitive documentation necessary to implement the separation of CCOH from iHeart and the other Company Parties on the Restructuring
Effective Date pursuant to a taxable separation or tax-free divisive G reorganization.
		
	Structure and Tax Considerations	  	 Subject to the agreement of the Company Parties and the Required Consenting Senior Creditors, in their reasonable discretion, the
Restructuring shall be structured as either a taxable separation of CCOH or as a tax-free “divisive G” reorganization pursuant to I.R.C. §§ 368(a)(1)(G) and 355 so as to:

 
 •  separate CCOH from iHeart and
the other Company Parties on the Restructuring Effective Date;
  

•  obtain the most beneficial structure for the Company Parties and CCOH; and

 
 •  preserve or otherwise
maximize favorable tax attributes (including tax basis) of the Company Parties and CCOH to the extent practicable.

		
	Market Financing	  	Some or all of the New Secured Debt may be replaced with cash proceeds of third-party market financing that becomes available prior to the Effective Date. Any reduction of New Secured Debt shall be made proportionally based upon the
ratio of New Secured Debt to be distributed to (a) Term Loan Credit Facility Claims and PGN Claims on the one hand, and (b) 2021 Notes Claims and Legacy Notes Claims on the other hand.
		
	Milestones	  	 The Restructuring must conform to the following timetable (each event, a “Milestone”):

 
 •  the Plan, Disclosure
Statement, and a motion for approval of the Disclosure Statement, all in form and substance reasonably acceptable to the Company Parties and Consenting Stakeholders as provided in the RSA, shall be filed in the Chapter 11 Cases within 45 days of the
Petition Date;
  
 •  an order
approving the Disclosure Statement shall be entered by the Bankruptcy Court within 70 days of the filing of the Plan and Disclosure Statement, provided that such milestone may be extended twice, with the first such extension being a 20 day
period in the Company Parties’ sole discretion and the second such extension being a 20 day period, upon the Company Parties certifying to the Required Consenting Creditors of the existence of a legitimate,
non-binding expression of interest from a qualified third party in a Consistent Alternative Transaction prior to each such extension or with the agreement of the Required Consenting Senior
Creditors;

  

	4 	Includes the $57.1 million of 5.5% senior notes due 2016 held by Clear Channel Holdings, Inc. 

  
 40 

			
		
		  	 •  an order confirming the Plan shall be entered by the Bankruptcy Court within 75
days of the entry of an order approving the Disclosure Statement; and
  

•  the Restructuring Effective Date shall occur within 365 days of the Petition Date (the
“Outside Date”); provided that the Parties shall negotiate in good faith for a reasonable extension of the Outside Date if the Parties have otherwise complied with the terms of the Definitive Documents and all other events
and actions necessary for the occurrence of the Restructuring Effective Date have occurred other than the receipt of regulatory or other approval of a governmental unit necessary for the occurrence of the Restructuring Effective Date.

		
	Conditions Precedent to the Restructuring Effective Date	  	 The occurrence of the Restructuring Effective Date shall be subject to the following conditions precedent:

 
 •  the RSA shall not have been
terminated and remain in full force and effect;
  

•  the orders approving the Disclosure Statement and the Plan shall have been entered and such orders
shall not have been stayed, modified, or vacated on appeal;
  

•  entry into the New ABL Facility (with all conditions precedent thereto having been satisfied or
waived);
  
 •  entry into and
issuance of the New Secured Debt (with all conditions precedent thereto having been satisfied or waived);
  

•  issuance of the Reorganized iHeart Equity (with all conditions precedent thereto having been
satisfied or waived);
  

•  establishment of a professional fee escrow account funded in the amount of estimated accrued but
unpaid professional fees incurred by the Company Parties during the Chapter 11 Cases;
  

•  Payment of all reasonable and documented fees and expenses incurred at any time in connection with
the Company Parties by (a) members of the Term Loan/PGN Group, (b) members of the Term Lender Group, so long as each member of the Term Lender Group executes the RSA, (c) the 2021 Noteholder Group Professionals, (d) the
Consenting Sponsors, and (e) the agents and/or trustees for the Term Loan Credit Facility Claims, the PGN Claims, and the 2021 Notes Claims;
  

•  unless waived by the Company Parties and the Required Consenting Senior Creditors, the Internal
Revenue Service shall have issued a private letter ruling (“PLR”) or iHeart shall have received an opinion of counsel or accounting firm chosen by the Company Parties (“Tax Opinion”), in each case in form and
substance reasonably acceptable to the Company Parties and the Required Consenting Senior Creditors, with respect to any and all matter(s) that such parties have reasonably determined that the receipt of a PLR or a Tax Opinion is advisable with
respect to the Restructuring;

  
 41 

			
		
		  	 •  CCOH shall have been separated or
spun-off from the Company Parties and the holders of the Term Loan Credit Facility Claims and PGN Claims shall be the holders of economic interests in CCOH currently held by the Company Parties or their
subsidiaries; and
  
 •  any and
all requisite FCC approvals and any other governmental, regulatory, and third-party approvals and consents shall have been obtained.

	
	Corporate Governance and Employee Matters
		
	Board of Directors	  	 The board of directors of Reorganized iHeart (the “Reorganized Board”) shall consist of nine members. The Required
Consenting Senior Creditors shall appoint a committee responsible for interviewing and selecting the non-management directors (the “Selection Committee”).5 The Consenting Sponsors shall have the right to appoint one individual to serve on the Selection Committee. The Chief Executive Officer and President/Chief Operating Officer/Chief Financial Officer
shall have the right to consult with the Selection Committee regarding such candidates. The Selection Committee may take recommendations for potential directors from the Chief Executive Officer and President/Chief Operating Officer/Chief Financial
Officer, a qualified search firm, or any of the Consenting Stakeholders. The Selection Committee shall consult with the Chief Executive Officer and President/Chief Operating Officer/Chief Financial Officer to determine the appropriate number of
independent directors.
  
 The Selection Committee shall also interview and select
individuals to be nominated and elected by Reorganized iHeart immediately prior to the CCOH Separation to serve on the board of CCOH.
  

The members of the Reorganized Board will be identified at or prior to the hearing to consider confirmation of the Plan.

		
	Corporate Governance Documents	  	In connection with the Restructuring Effective Date, and consistent with section 1123(a)(6) of the Bankruptcy Code, Reorganized iHeart and CCOH shall adopt customary corporate governance documents, including amended and
restated certificates of incorporation, bylaws, and shareholders’ agreements in form and substance reasonably acceptable to the Company Parties and the Required Consenting Senior Creditors.
		
	Employment Obligations	  	The Consenting Stakeholders consent to (i) the continuation of the Company Parties’ wages, compensation, benefits, and incentive programs according to existing terms and practices, including executive compensation programs
and the 2018 incentive plans on terms reasonably acceptable to the Company Parties and the Required Consenting Senior Creditors and to be disclosed prior to the deadline to object to the Disclosure Statement, and (ii) any motions in the
Bankruptcy Court for approval thereof.

  

	5 	Management participation on the board to be determined. 

  
 42 

			
	Employment Agreements	  	The Plan shall provide for the employment agreements for each of the members of the senior management team of iHeart to be assumed or otherwise amended on terms reasonably acceptable to the Company Parties and the Required
Consenting Senior Creditors, with the consent of the applicable member of the senior management team, and to be disclosed prior to the deadline to object to the Disclosure Statement.
		
	Indemnification of Prepetition Directors, Officers, Managers, et al.	  	Under the Restructuring, all indemnification provisions currently in place (whether in the by-laws, certificates of incorporation or formation, limited liability company agreements, other
organizational documents, board resolutions, indemnification agreements, employment contracts, or otherwise) for the current and former directors, officers, managers, employees, attorneys, accountants, investment bankers, and other professionals of
the Company Parties, as applicable, shall be assumed and survive the effectiveness of the Restructuring.
		
	Post-Emergence Equity Incentive Program	  	Members of the management team of Reorganized iHeart will be entitled to participate in an equity incentive program (the “Post-Emergence Equity Incentive Program”) to be determined and to be included as an
exhibit to the Plan when first filed by the Company Parties.
	
	Miscellaneous Provisions
		
	Debtor Releases, Third-Party Releases, and Exculpation	  	 The exculpation provisions, the Debtor releases, and the “third-party” releases to be included in the Plan will be as set forth in
Annex 2 hereto in all material respects.
  
 To the extent there is an
ability to “opt out,” the Consenting Stakeholders will, pursuant to the RSA, agree not to “opt out” of the consensual “third-party” releases.
  

On the Restructuring Effective Date, the Company Parties and their affiliates shall take all steps necessary to dismiss with prejudice the Texas
Litigation.

		
	Reorganized iHeart Equity	  	Except as otherwise noted, it is the intent of the parties that any “securities” as defined in section 2(a)(1) of the Securities Act of 1933 issued under the Plan, except with respect to any entity that is an underwriter,
shall be exempt from registration under U.S. state and federal securities laws pursuant to section 1145 of the Bankruptcy Code and Reorganized iHeart will utilize section 1145 of the Bankruptcy Code, or to the extent that such exemption is
unavailable, shall utilize any other available exemptions from registration, as applicable. Customary registration rights to be provided to any holders who may be unable to rely upon an exemption for resales. Reorganized iHeart will use reasonable
best efforts to have its common stock admitted to listing on a recognized U.S. stock exchange as promptly as reasonably practicable on or after the Restructuring Effective Date, and prior to any such listing to use its reasonable best efforts to
qualify its shares for trading in the pink sheets.
		
	Regulatory Requirements	  	All parties shall abide by, and use their reasonable best efforts to obtain, any regulatory and licensing requirements or approvals to consummate the Restructuring as promptly as practicable including, but not limited to
requirements or approvals that may arise as a result of such party’s equity holdings in Reorganized iHeart.

  
 43 

			
		
	Non-Transfer	  	Except as otherwise disclosed to the Parties prior to executing the RSA, from and after January 1, 2018 through the Restructuring Effective Date, each Consenting Stakeholder has not and will not transfer any of the Equity
Interests in the Company Parties held by such Consenting Stakeholder or its affiliates, or claim a worthless stock deduction in any such Equity Interests, and will prevent any of its affiliates from taking any similar action unless the transferee(s)
agree(s) to be bound by all of the terms and conditions of the Term Sheet.

  
 44 

 Annex 1 

Company Parties 
 1. AM/FM Broadcasting
Licenses, LLC 
 2. AM/FM Broadcasting, Inc. 
 3. AM/FM
Operating, Inc. 
 4. AM/FM Radio Licenses, LLC 
 5. AM/FM Texas
Broadcasting, LP 
 6. AM/FM Texas Licenses, LLC 
 7. AM/FM
Texas, LLC 
 8. Capstar Radio Operating Company 
 9. Capstar
TX, LLC 
 10. CC Broadcast Holdings, Inc. 
 11. CC Finco
Holdings, LLC 
 12. CC Licenses, LLC 
 13. Christal Radio
Stations, Inc. 
 14. Cine Guarantors II, Inc. 
 15. Citicasters
Co. 
 16. Citicasters Licenses, Inc. 
 17. Clear Channel
Broadcasting Licenses, Inc. 
 18. Clear Channel Holdings, Inc. 

19. Clear Channel Investments, Inc. 
 20. Clear Channel Metro, LLC

 21. Clear Channel Mexico Holdings, Inc. 
 22. Clear Channel
Real Estate, LLC 
 23. Critical Mass Media, Inc. 
 24.
iHeartCommunications, Inc. 
 25. iHeartMedia + Entertainments, Inc. 

26. iHeartMedia Capital I, LLC 
 27. iHeartMedia Capital II, LLC

 28. iHeartMedia, Inc. 
 29. iHeartMedia Management Services,
Inc. 
 30. iHM Identity, Inc. 
 31. Katz Communications, Inc.

 32. Katz Media Group, Inc. 
 33. Katz Millennium
Sales & Marketing, Inc. 
 34. Katz Net Radio Sales, Inc. 

35. M Street Corporation 
 36. Premiere Networks, Inc. 

37. Terrestrial RF Licensing, Inc. 
 38. TTWN Media Networks, LLC

 39. TTWN Networks, LLC 

 Annex 2 

Debtor Releases, Third-Party Releases, and Exculpation 

“Related Party” means, collectively, current and former directors, managers, officers, equity holders (regardless of whether such
interests are held directly or indirectly), affiliated investment funds or investment vehicles, predecessors, participants, successors, assigns, subsidiaries, affiliates, managed accounts or funds, partners, limited partners, general partners,
principals, members, management companies, fund advisors, employees, agents, advisory board members, financial advisors, attorneys, accountants, investment bankers, consultants, representatives, and other professionals. 

“Released Party” means, collectively, and in each case in its capacity as such: (a) each Company Party; (b) each Company
Party as reorganized pursuant to the Plan; (c) each Consenting Stakeholder; (d) each agent and/or trustee for the Term Loan Credit Facility Claims, the PGN Claims, and the 2021 Notes Claims; (e) each current and former Affiliate of
each Entity in clause (a) through (d); and (f) each Related Party of each Entity in clause (a) through (e). 
 “Releasing
Parties” means, collectively, and in each case in its capacity as such: (a) each Company Party; (b) each Company Party as reorganized pursuant to the Plan; (c) each Consenting Stakeholder; (d) all holders of Claims;
(e) all holders of Interests; (f) each current and former Affiliate of each Entity in clause (a) through (e); and (g) each Related Party of each Entity in clause (a) through (f). 

Releases by the Debtors. Pursuant to section 1123(b) of the Bankruptcy Code, for good and valuable consideration, on and after the Plan Effective Date,
each Released Party is deemed released and discharged by the Debtors, the Reorganized Debtors, and their Estates from any and all Causes of Action, including any derivative claims asserted on behalf of the Debtors, that the Debtors, the Reorganized
Debtors, or their Estates would have been legally entitled to assert in their own right (whether individually or collectively) or on behalf of the holder of any Claim against, or Interest in, a Debtor or other Entity, based on or relating to, or in
any manner arising from, in whole or in part, the Debtors, the Debtors’ capital structure, the assertion or enforcement of rights and remedies against the Debtors, the Debtors’ in- or out-of-court restructuring efforts, intercompany transactions between or among a Company Party and another Company Party, the Chapter 11 Cases, the formulation, preparation,
dissemination, negotiation, or filing of the RSA, the Disclosure Statement, the Plan, or any Restructuring Transaction, contract, instrument, release, or other agreement or document created or entered into in connection with the RSA, the Disclosure
Statement, or the Plan, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and implementation of the Plan, including the issuance or distribution of securities pursuant to the Plan, or
the distribution of property under the Plan or any other related agreement, or upon any other act or omission, transaction, agreement, event, or other occurrence taking place on or before the Plan Effective Date , including without limitation the
claims and causes of action asserted in the proceedings captioned (a) iHeartCommunications, Inc. v. Benefit Street Partners LLC et al., No. 2016 CI 

 
04006 in the District Court of Bexar County, Texas; (b) iHeartCommunications, Inc. v. Canyon Capital Advisors LLC et al., No. 2016 CI 07857 in the District Court of Bexar County,
Texas; and (c) iHeartCommunications, Inc. et al. v. Benefit Street Partners LLC et al., Civ. A. No. 5:17-00009 in the District Court of Bexar County, Texas (Case No. 2016 CI 12468).
Notwithstanding anything to the contrary in the foregoing, the releases set forth above do not release any post-Plan Effective Date obligations of any party or Entity under the Plan, any Restructuring Transaction, or any document, instrument, or
agreement (including those set forth in the Plan Supplement) executed to implement the Plan. 
 Releases by Holders of Claims and Interests. As of
the Plan Effective Date, each Releasing Party is deemed to have released and discharged each Debtor, Reorganized Debtor, and Released Party from any and all Causes of Action, whether known or unknown, including any derivative claims asserted on
behalf of the Debtors, that such Entity would have been legally entitled to assert (whether individually or collectively), based on or relating to, or in any manner arising from, in whole or in part, the Debtors, the Debtors’ in- or out-of-court restructuring efforts, intercompany transactions between or among a Company Party and another Company Party, the
Chapter 11 Cases, the formulation, preparation, dissemination, negotiation, or filing of the RSA, the Disclosure Statement, the Plan, or any Restructuring Transaction, contract, instrument, release, or other agreement or document created or entered
into in connection with the RSA, the Disclosure Statement, or the Plan, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and implementation of the Plan, including the issuance or
distribution of securities pursuant to the Plan, or the distribution of property under the Plan or any other related agreement, or upon any other related act or omission, transaction, agreement, event, or other occurrence taking place on or before
the Plan Effective Date. Notwithstanding anything to the contrary in the foregoing, the releases set forth above do not release any post-Plan Effective Date obligations of any party or Entity under the Plan, any Restructuring Transaction, or any
document, instrument, or agreement (including those set forth in the Plan Supplement) executed to implement the Plan. 
 Exculpation. Except as
otherwise specifically provided in the Plan, no Exculpated Party shall have or incur, and each Exculpated Party is released and exculpated from any Cause of Action for any claim related to any act or omission in connection with, relating to, or
arising out of, the Chapter 11 Cases, the formulation, preparation, dissemination, negotiation, or filing of the RSA and related prepetition transactions, the Disclosure Statement, the Plan, or any Restructuring Transaction, contract, instrument,
release or other agreement or document created or entered into in connection with the Disclosure Statement or the Plan, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and
implementation of the Plan, including the issuance of securities pursuant to the Plan, or the distribution of property under the Plan or any other related agreement, except for claims related to any act or omission that is determined in a final
order to have constituted actual fraud or gross negligence, but in all respects such Entities shall be entitled to reasonably rely upon the advice of counsel with respect to their duties and responsibilities pursuant to the Plan. The Exculpated
Parties have, and upon completion of the Plan shall be deemed to have, participated in good faith and in compliance with the applicable laws with regard to the solicitation of votes and distribution of consideration pursuant to the Plan and,
therefore, are not, and on account of such distributions shall not be, liable at any time for the violation of any applicable law, rule, or regulation governing the solicitation of acceptances or rejections of the Plan or such distributions made
pursuant to the Plan. 

 EXHIBIT B 

Transfer Agreement 

PROVISION FOR TRANSFER AGREEMENT 

The undersigned (“Transferee”) (a) hereby acknowledges that it has read and understands the Restructuring Support
Agreement, dated as of             (the “Agreement”),1 by and among the Company Parties and each of the Consenting
Stakeholders party thereto, (b) desires to acquire the Claims described below (the “Transferred Claims”) from one of the Consenting Stakeholders (the “Transferor”), and (c) hereby irrevocably agrees to be
bound by the terms and conditions of the Agreement to the same extent the Transferor was thereby bound with respect to the Transferred Claims, and shall be deemed a “Consenting Stakeholder” and a [“Consenting Creditor”] /
[“Consenting Sponsor”] under the terms of the Agreement. 
 The Transferee hereby specifically and irrevocably agrees (i) to
be bound by the terms and conditions of the Agreement, to the same extent applicable to the Transferred Claims, (ii) to be bound by the vote of the Transferor if cast prior to the effectiveness of the transfer of the Transferred Claims, except
as otherwise provided in the Agreement, and (iii) that each of the Parties shall be an express third-party beneficiary of this Provision for Transfer Agreement and shall have the same recourse against the Transferee under the Agreement as such
Party would have had against the Transferor with respect to the Transferred Claims. 
 Date Executed:
            , 
  

	
	  

Print name of Transferee

	
	  

Name:

	 Title:

	
Address:                 
                                         
              

	
	  

	
	  

	
	
Attention:                 
                                         
              

	
Telephone:                 
                                         
              

	
Facsimile:                 
                                         
              

  
  

	1	Capitalized terms used but not defined herein shall have the meanings given to such terms elsewhere in the Agreement. 

			
	 Principal Amount
Held

	 Claim Type
	  	Amount

 Schedule 1 

Company Parties 
 1. AM/FM Broadcasting
Licenses, LLC 
 2. AM/FM Broadcasting, Inc. 
 3. AM/FM
Operating, Inc. 
 4. AM/FM Radio Licenses, LLC 
 5. AM/FM Texas
Broadcasting, LP 
 6. AM/FM Texas Licenses, LLC 
 7. AM/FM
Texas, LLC 
 8. Capstar Radio Operating Company 
 9. Capstar
TX, LLC 
 10. CC Broadcast Holdings, Inc. 
 11. CC Finco
Holdings, LLC 
 12. CC Licenses, LLC 
 13. Christal Radio
Stations, Inc. 
 14. Cine Guarantors II, Inc. 
 15. Citicasters
Co. 
 16. Citicasters Licenses, Inc. 
 17. Clear Channel
Broadcasting Licenses, Inc. 
 18. Clear Channel Holdings, Inc. 

19. Clear Channel Investments, Inc. 
 20. Clear Channel Metro, LLC

 21. Clear Channel Mexico Holdings, Inc. 
 22. Clear Channel
Real Estate, LLC 
 23. Critical Mass Media, Inc. 
 24.
iHeartCommunications, Inc. 
 25. iHeartMedia + Entertainments, Inc. 

26. iHeartMedia Capital I, LLC 
 27. iHeartMedia Capital II, LLC

 28. iHeartMedia, Inc. 
 29. iHeartMedia Management Services,
Inc. 
 30. iHM Identity, Inc. 
 31. Katz Communications, Inc.

 32. Katz Media Group, Inc. 
 33. Katz Millennium
Sales & Marketing, Inc. 
 34. Katz Net Radio Sales, Inc. 

35. M Street Corporation 
 36. Premiere Networks, Inc. 

37. Terrestrial RF Licensing, Inc. 
 38. TTWN Media Networks, LLC

 39. TTWN Networks, LLCExhibit

Exhibit 10.7

NORDSTROM

EXECUTIVE DEFERRED COMPENSATION PLAN

(2017 Restatement)

Includes All Amendments Approved by the Company
since the 2014 Restatement, including:

Amendment 2015-1

Except as otherwise stated herein, the effective date of this 2017 Restatement is November 1, 2017.  Amounts deferred and vested prior to January 1, 2005 (and investment gains and losses attributable to such amounts) are governed by the 2003 Restatement and any amendments to the 2003 Restatement.  Amounts initially deferred and vested after December 31, 2004 and before January 1, 2008 are subject to the provisions of the 2007 Restatement, except to the extent modified by transition rules separately documented by the Company.  Amounts deferred and vested between January 1, 2008 and December 31, 2013 are similarly subject to the provisions of the 2007 Restatement, except as otherwise provided in the 2014 Restatement.  Amounts deferred and vested between January 1, 2014 and October 31, 2017 are subject to the provisions of the 2014 Restatement, except as otherwise provided in the 2017 Restatement.

Lane Powell PC
1420 5th Avenue, Suite 4200
Seattle, WA 98101
Telephone:  (206) 223-7000
Facsimile:  (206) 223-7101

NORDSTROM
EXECUTIVE DEFERRED COMPENSATION PLAN
(2017 Restatement)

TABLE OF CONTENTS
		
	ARTICLE I
	1

		
	1.1
	Title                                            1

		
	1.2
	Purpose                                        1

		
	1.3
	Effective Date                                    1

		
	ARTICLE II
	1

		
	2.1
	Eligible Employee                                    1

		
	2.2
	Entry Date                                        2

		
	2.3
	When Participation Begins                                2

		
	2.4
	Suspension of Participation                                2

		
	2.5
	When Participation Ends                                2

		
	ARTICLE III
	3

		
	3.1
	Deferral Elections                                    3

		
	3.2
	Amount of Deferral                                    4

		
	3.3
	Minimum Deferral                                    6

		
	3.4
	Company Contribution Allocations                            6

		
	3.5
	Deferral of Signing Bonus, Retention Bonus or Separation Payments Prohibited    9

		
	3.6
	Requirement for Deferral Agreement                        10

		
	3.7
	Applicability of Deferral Agreement                        10

		
	ARTICLE IV
	10

		
	4.1
	Account                                        10

		
	4.2
	Time of Crediting Accounts                                11

		
	4.3
	Participant Deemed Investments                            11

		
	4.4
	Investments by the Company                            12

		
	4.5
	Limited Effect of Allocation                            12

		
	4.6
	Report of Account                                    12

		
	ARTICLE V
	13

		
	5.1
	Ownership Rights in Account                            13

		
	5.2
	Rights in Plan are Unfunded and Unsecured                    13

		
	5.3
	No Transfer of Interest in Plan Allowed                        13

		
	5.4
	Plan Binding Upon Parties                                13

		
	5.5
	Application of Clawback Policy                            13

		
	ARTICLE VI
	14

		
	6.1
	Separation Distributions                                14

		
	6.2
	In-Service Distributions                                14

		
	6.3
	Pre-Retirement Separation                                16

		
	6.4
	Payment Commencement Date                            16

i
    

		
	6.5
	Delayed Payment Date                                16

		
	6.6
	Changing the Time or Form of Distribution                    17

		
	6.7
	Cash and Stock Distributions                            17

		
	6.8
	Postponement of Non-Deductible Distributions                    17

		
	6.9
	Acceleration of Payment                                19

		
	6.10
	Post-Distribution Allocations                            19

		
	ARTICLE VII
	19

		
	7.1
	Designation of Beneficiary                                19

		
	7.2
	Married Participants                                    19

		
	7.3
	Deemed Beneficiary                                    19

		
	7.4
	Surviving Beneficiary                                20

		
	7.5
	Determination of Account Balance at Death                    20

		
	7.6
	Distribution of Account Balance at Death                        20

		
	7.7
	Determination of Beneficiary                            20

		
	7.8
	Payments to Minor or Incapacitated Beneficiaries                    20

		
	7.9
	Effect of Divorce                                    21

		
	ARTICLE VIII
	21

		
	8.1
	Plan Sponsor and Administrator                            21

		
	8.2
	Powers and Authority of the Company                        21

		
	8.3
	Administrative Committee                                21

		
	8.4
	Powers and Authority of Leadership Benefits                    22

		
	8.5
	Reliance on Opinions                                23

		
	8.6
	Information                                        23

		
	8.7
	Indemnification                                    23

		
	ARTICLE IX
	24

		
	9.1
	Submission of Claim                                24

		
	9.2
	Denial of Claim                                    24

		
	9.3
	Review of Denied Claim                                24

		
	9.4
	Decision upon Review of Denied Claim                        24

		
	ARTICLE X
	24

		
	ARTICLE XI
	25

		
	11.1
	No Employment Contract                                25

		
	11.2
	Employee Cooperation                                25

		
	11.3
	Illegality and Invalidity                                25

		
	11.4
	Required Notice                                    25

		
	11.5
	Interest of Participant’s Spouse                            25

		
	11.6
	Tax Liabilities from Plan                                25

		
	11.7
	Benefits Nonexclusive                                26

		
	11.8
	Discharge of Company Obligation                            26

		
	11.9
	Costs of Enforcement                                26

		
	11.10
	Gender and Case                                    26

		
	11.11
	Titles and Headings                                    26

ii
    

		
	11.12
	Applicable Law                                    26

		
	11.13
	Counterparts                                        26

11.14    Additional Definitions                                26

INDEX OF DEFINED TERMS

	
			
	Term
	Defined in Section
	Page Number

	Account
	4.1
	9

	Annual Election Period
	2.3(a)
	2

	Base Compensation
	3.1(b)(1)
	3

	Bonus Compensation
	3.1(b)(2)
	3

	Board
	11.14(a)
	25

	Change in Control
	6.8(c)
	17

	Claiming Party
	9.1
	22

	Code
	11.14(b)
	25

	Common Stock Unit Sub-Account
	4.1(b)
	10

	Company
	1.2
	1

	Deemed Investment Sub-Account
	4.1(a)
	9

	Deferral Agreement
	3.1(a)
	3

	Deferred Retirement Date
	11.14(c)
	25

	Disabled
	3.7(b)(2)
	9

	Early Retirement Date
	11.14(d)
	25

	Election Period
	2.3
	2

	Eligible Compensation
	3.1(b)
	3

	Eligible Employee
	2.1
	1

	Equity Incentive Plan
	11.14(e)
	25

	ERISA
	1.2
	1

iii
    

	
			
	401(k) Plan
	11.14(f)
	26

	Initial Election Period
	2.3(b)
	2

	Leadership Benefits
	2.1(c)
	2

	Make-up Contribution
	3.4(a)
	6

	Normal Retirement Date
	11.14(h)
	26

	Participant
	2.3
	2

	Payment Commencement Date
	6.4
	15

	Performance Share Unit
	3.1(b)(3)
	4

	Plan Administrator
	8.1
	20

	Plan Year
	11.14(k)
	26

	Restoration Contribution
	3.4(c)
	7

	Restricted Stock Unit
	3.1(b)(4)
	4

	Specified Employee
	6.5
	15

	Supplemental Executive Retirement Plan (SERP)
	11.14(d)
	25

	Termination Date
	11.14(l)
	26

	Unforeseeable Financial Emergency
	6.2(a)(i)
	14

	Years of Service
	11.14(m)
	27

iv
    

ARTICLE I
TITLE, PURPOSE AND EFFECTIVE DATE

1.1    Title.  This plan shall be known as the Nordstrom Executive Deferred Compensation Plan, and any reference in this instrument to the “Plan” shall include the plan as described herein and as amended from time to time.

1.2    Purpose.  The Plan is intended to constitute an unfunded plan maintained primarily for the purpose of providing an opportunity for deferred compensation for a select group of management or highly compensated employees, within the meaning of Section 201(2), 301(a)(3) and 401(a)(4) of the Employee Retirement Income Security Act of 1974 (“ERISA”), of Nordstrom, Inc., a Washington corporation, and its Participating Subsidiaries and Affiliates (“Company”).  

1.3    Effective Date.  The Plan was originally effective as of January 1, 1994.  The Plan was subsequently amended on a number of occasions and most recently was restated effective January 1, 2014.  Except as otherwise stated herein, the effective date of this 2017 Restatement is November 1, 2017.  Amounts deferred and vested prior to January 1, 2005 (and investment gains and losses attributable to such amounts) are governed by the 2003 Restatement and any amendments to the 2003 Restatement.  Amounts initially deferred and vested after December 31, 2004 and before January 1, 2008 are subject to the provisions of the 2007 Restatement, except to the extent modified by transition rules separately documented by the Company.  Amounts deferred and vested between January 1, 2008 and December 31, 2013 are similarly subject to the provisions of the 2007 Restatement, except as otherwise provided in the 2014.  Amounts deferred and vested between January 1, 2014 and October 31, 2017 are subject to the provisions of the 2014 Restatement, except as otherwise provided in the 2017 Restatement.
ARTICLE II
ELIGIBILITY

2.1    Eligible Employee.  An “Eligible Employee” means, for any Plan Year, any employee of the Company who:  

(a)    Is employed in a “Leadership” capacity as defined by the Company’s Human Resources Department; and 

(b)    For Plan Years beginning on and after January 1, 2014, either:

(1)    Has current annualized Base Compensation (as defined in 3.1 (b )(1)) of not less than the Code section 414(q) limitation in effect at the beginning of such Plan Year (e.g., for the Plan Year beginning January 1, 2018, this limitation is $120,000); or

(2)     Whose total Base Compensation determined in (b)(1) above plus Bonus Compensation (as defined in Section 3.1(b)(2))received in the immediately preceding Plan Year exceeded the Code section 414(q) limitation referenced in (b)(1) above; and

(c)     has been designated as eligible by the Administrative Committee or its delegate.  

1

    

Subject to the provisions of the Plan, all Eligible Employees will be eligible to defer compensation and receive benefits at the time and in the manner provided hereunder.  

2.2    Entry Date.  An Eligible Employee shall be eligible to participate in the Plan as follows:

(a)    Eligible Employees who are first hired by the Company during a plan year shall be eligible to participate in the Plan on March 1, June 1 or September 1 following the date he or she first becomes an Eligible Employee.

(b)    All other Eligible Employees shall be eligible to participate in the Plan on January 1 of the year following the year in which he or she became an Eligible Employee.

2.3    When Participation Begins.  An Eligible Employee becomes a “Participant” in the Plan for the Plan Year when he or she elects to defer a portion of Eligible Compensation (defined in 3.1(b)) during the applicable Election Period pursuant to the terms of the Plan and Article III.  The “Election Period” is either the Annual Election Period or, for newly hired and eligible Employees, the Initial Election Period, determined as follows:

(a)    Annual Election Period.  “Annual Election Period” means the period designated each year during which Eligible Employees submit their elections to defer compensation.  Leadership Benefits has discretion to establish the Annual Election Period and may establish different Annual Election Periods for different types of compensation, provided that annual elections must become irrevocable not later than the time specified under Code Section 409A.  A Participant’s deferral election with respect to Base Compensation and Bonus Compensation at an Annual Election Period must become irrevocable not later than December 31 of the year preceding the year in which the Participant performs services generating the Base Compensation and the Bonus Compensation.

(b)    Initial Election Period.  The Initial Election Period for any employee who first becomes an Employee and  Eligible Employee during the Plan Year is the period of thirty (30) days that begins on his or her Entry Date under 2.2.  An Eligible Employee’s election relates only to Compensation paid for services to be performed subsequent to the election and applies only to Base Compensation.  Deferral of Bonus Compensation, Performance Share Units and Restricted Stock Units can be elected only during an Annual Election Period and, for Performance Share Units and Restricted Stock Units, can be elected only if the award agreement underlying the Performance Share Units or Restricted Stock Units specifically includes deferral provisions. 

2.4    Suspension of Participation.  If a Participant receives an unscheduled in-service distribution (with penalty) under the 2003 Restatement of this Plan, the Participant’s eligibility to defer under this Plan shall continue for the remainder of the Plan Year in which the unscheduled in-service distribution is received, but shall be suspended for the next two Plan Years.

2.5    When Participation Ends.  An individual remains a Participant as long as he or she has an Account balance that has not yet been entirely distributed.  If, prior to a Participant’s Termination Date, a Participant has ceased to be a member of a select group of management or highly 

2

compensated employees of the Company within the meaning of Sections 201(2), 301(a)(3) and 401(a)(4) of ERISA, such Participant’s deferral elections shall continue for the remainder of the Plan Year to which the deferral elections relate.  However, the Participant shall become ineligible to defer compensation under the Plan effective with the next Plan Year, and the Participant shall not re-establish eligibility to defer compensation until such time as he or she once again becomes a member of a select group of management or highly compensated employees and meets the other eligibility requirements set forth in the Plan.  The Participant’s Account will be distributed at the time and in the form specified by the terms of the Plan and the Participant’s elections.  Notwithstanding the forgoing, if an Eligible Employee transfers to a foreign subsidiary of the Company, his or her deferrals under the Plan shall cease upon such transfer and the Participant’s Account will be distributed at the time and in the form specified by the terms of the Plan and the Participant’s elections.  

ARTICLE III
DEFERRAL OF COMPENSATION

3.1    Deferral Elections.  Upon becoming eligible to be a Participant under Section 2.2, and for any Plan Year thereafter (subject to Sections 2.4 and 2.5), an Eligible Employee who wishes to defer compensation under this Plan must properly execute a Deferral Agreement on or before the last day of the applicable Election Period.

(a)    Deferral Agreement.  As used in this Plan, the term “Deferral Agreement” means the form prescribed by Leadership Benefits, by which the Participant:

(1)    indicates and agrees to defer a portion of the Participant’s Eligible Compensation for any Plan Year; and

(2)    specifies the time and form of payment for amounts deferred for the Plan Year.  

For this purpose, an Eligible Employee will be considered to have properly executed a Deferral Agreement when he or she has enrolled via an online system, or completed, signed and returned the appropriate form of Deferral Agreement to Leadership Benefits, each in a manner approved by Leadership Benefits.  

(b)    Eligible Compensation.  For purposes of this Plan, the following items of a Participant’s remuneration shall be considered “Eligible Compensation”:

(1)    Base Compensation.  A Participant’s Base Compensation, which means a Participant’s base salary scheduled to be paid in the normal course through the Company’s regular payroll cycles (including amounts characterized by the Company as International Premium Pay).  Deferrals to this Plan are calculated and deducted before any deferrals under the 401(k) Plan, the Company’s cafeteria plan under Code Section 125, and the Company’s transportation fringe benefits plan under Code Section 132(f).

3

(2)    Bonus Compensation.  A Participant’s Bonus Compensation, scheduled to be paid to the Participant either in cash or stock.  Bonus Compensation means the amount, determined annually based on the Participant’s job performance and other factors, that is paid to the Participant in excess of the Participant’s Base Compensation.
 
(3)    Performance Share Units.  A Participant’s Performance Share Units as defined in and governed by the Equity Incentive Plan.

(4)    Restricted Stock Units.  A Participant’s Restricted Stock Units as defined in and governed by the Equity Incentive Plan.

Not all forms of Eligible Compensation may be subject to a deferral opportunity.  For example, the existence of deferral opportunities for awards of Performance Share Units and Restricted Stock Units depends on whether deferral provisions are included in the agreements underlying such awards.

3.2    Amount of Deferral.  A Participant may, for any Plan Year, irrevocably elect to have the following amounts of Eligible Compensation deferred and credited to the Participant’s Account in accordance with the terms and conditions of the Plan:

(a)    Base Compensation.  Effective for deferral elections made after January 1, 2015, all or a portion of the Participant’s Base Compensation expressed as either a percentage or a flat dollar amount, provided that, the deferral cannot exceed eighty percent (80%) of the Eligible Employee’s Base Compensation.  For deferral elections made on or before January 1, 2015, the terms of the Plan in effect prior to this Amendment 2015-1 shall apply.  The deferral percentage applied to a Participant’s Base Compensation each pay period shall be based on a Participant’s annualized Base Compensation over the number of scheduled pay periods during the Plan Year from which deferrals can be taken; this means that the actual deferral made by a Participant in any given Plan Year will not necessarily equal his or her annual Base Compensation multiplied by his or her deferral rate.  For example, assume Participant’s annualized Base Compensation is $200,000 and that the election is effective as of the first day of the Plan Year; the maximum annual deferral for such Participant would be $160,000 (= 80% x $200,000).  Assume further that Participant’s deferral election is 40% of Base Compensation and that his or her annualized Base Compensation is scheduled to be paid over 23 pay periods; that Participant’s total annualized deferral is $80,000 and is deferred at a rate of $3,478.26 (= $80,000 / 23) per pay period.  

(b)    Bonus Compensation.  For Participants electing deferrals during an Annual Election Period under 2.3(a), all or a portion of the Participant’s Bonus Compensation that is attributable to services to be performed beginning in the Plan Year immediately following the Annual Election Period.  Employees who become newly Eligible Employees and who elect to enroll during an Initial Election Period under 2.3(b) may not defer Bonus Compensation payable for the Plan Year during which their enrollment occurs.

(c)    Performance Share Units.  All or a portion of a Participant’s unvested Performance Share Units awarded by the Company, provided that:

4

(1)    The Company makes a deferral opportunity available by including deferral provisions within the “Performance Share Unit Agreement” underlying the award of Performance Share Units;

(2)    The Performance Share Units are scheduled to vest based on the Participant’s achievement of individual or organizational performance criteria that are established within the first 90 days of a performance cycle that will last at least 12 months;

(3)    The deferral election is made at a time when at least six (6) months remain in the performance cycle;

(4)    The Participant provides services continuously for the period from the first day of the performance cycle (or if later, the date the performance criteria are established) through the date that the deferral election is made; and

(5)    The deferral election is made before the amount of the Performance Share Units that will vest is readily ascertainable.

(d)    Restricted Stock Units.  All or a portion of a Participant’s unvested Restricted Stock Units awarded by the Company, provided that:

(1)    With respect to an award of Restricted Stock Units that is scheduled to vest based on the Participant’s achievement of individual or organizational performance criteria:

(A)    The Company makes a deferral opportunity available by including deferral provisions within the “Restricted Stock Unit Agreement” underlying the award of Restricted Stock Units;

(B)    The applicable individual or organizational performance criteria are established within the first 90 days of a performance cycle that will last at least 12 months;

(C)    The deferral election is made at a time when at least six (6) months remain in the applicable award’s performance cycle;

(D)    The Participant provides services continuously for the period from the first day of the performance cycle (or if later, the date the performance criteria are established) through the date that the deferral election is made; and

(E)    The deferral election is made before the amount of the Restricted Stock Units that will vest under the applicable award is readily ascertainable.

(2)    With respect to an award of Restricted Stock Units that are scheduled to vest based solely on the lapse of time:

5

(A)    The Company makes a deferral opportunity available by including deferral provisions within the “Restricted Stock Unit Agreement” underlying the award of Restricted Stock Units; and

(B)    The deferral election must be made by the end of the Plan Year immediately preceding the Plan Year in which the award of Restricted Stock Units is initially granted.

3.3    Minimum Deferral.  Effective for Plan Years beginning on and after January 1, 2014, there is no minimum deferral limitation under this Plan.

3.4    Company Contribution Allocations.  The following Company contributions are permitted under the Plan:

(a)    Make-up Contribution. Each Plan Year, the Company shall allocate to each Participant’s Account an amount corresponding to the Participant’s lost share of Company contributions to its 401(k) Plan, determined as follows:  

(1)     an amount, if any, equal to such Participant’s lost share of non-elective contributions under the 401(k) Plan; and 

(2)     an amount, if any, equal to such Participant’s lost share of matching contributions under the 401(k) Plan.  

For purposes of this allocation, a Participant’s “lost share” of non-elective and matching contributions is the amount of contributions not allocated to Participant’s 401(k) Plan account because of:
(A)    The reduction in the Participant’s compensation (as defined under the Participant’s 401(k) Plan) by reason of deferrals under this Plan, or

(B)    The Participant’s exclusion from receiving a Company non-elective contribution under the Participant’s 401(k) Plan on account of being considered “otherwise excludible” under Code section 410(b)(4). 

The time and form of payment of Make-up Contributions shall be determined by the Participant’s deferral elections applicable for the Plan Year preceding the Plan Year in which the Make-up Contribution is actually credited to the Participant’s Account. For example, the time and form of payment of Make-up Contributions credited in early 2015 with respect to Participant’s Excess Compensation earned in the 2014 Plan Year shall be determined on the Participant’s deferral elections applicable for Base Compensation paid during the 2014 Plan Year. If no such deferral election exists, then the time and form of payment of the Participant’s Make-up Contribution for such Plan Year shall be as a single lump sum payment made at Participant’s Separation. 

6

Effective for Make-up Contributions made in 2015 and thereafter for the Participant’s lost share of Company contributions to the Participant’s 401(k) Plan for the 401(k) Plan’s fiscal year ending December 31, 2014, and later, those Make-up Contributions will be subject to the same vesting schedule that would have applied had they been made as Company contributions to the Participant under the Participant’s 401(k) Plan.  

For the avoidance of doubt, to receive a Make-up Contribution with respect to a given Plan Year, the Participant must have made a deferral under this Plan for such Plan Year.

(b)    Company Discretionary Contributions.  In addition to any Company contributions made in accordance with 3.4(a), the Company may, in its sole discretion, make discretionary contributions to the Accounts of one or more Participants at such times, in such amounts, and vested in such manner, as the Board or the Compensation Committee may determine.  Such discretionary contributions shall be credited to the applicable Participant’s Deemed Investment Sub-Account.  The Company must designate the time and form of distribution at the time that the discretionary contributions are allocated to the Participant’s Account.

(c)    Restoration Contributions.  Beginning with Plan Years commencing January 1, 2014, the Company shall allocate to certain Participants’ Accounts a Restoration Contribution, which shall be based on each Participant’s Excess Compensation (defined below).

A Participant’s “Excess Compensation” for Restoration Contribution allocation purposes means the excess of a Participant’s Unlimited 401(k) Plan Compensation (defined below) over the Participant’s actual 401(k) Plan Compensation for that Plan Year.  Moreover, “Excess Compensation” shall exclude performance-based or other incentive compensation received by a Participant that both (i) relates to the economic performance of an entity other than Nordstrom, Inc. and (ii) was adopted as part of, in recognition of, or in concert with, the merger, acquisition or change in control of such entity.

A Participant’s “Unlimited 401(k) Plan Compensation” for Restoration Contribution allocation purposes means Participant’s 401(k) Plan Compensation for a Plan Year determined without regard to the 401(a)(17) Limit (defined below) plus the amount deferred by Participant into this Plan during that Plan Year.  The 401(a)(17) Limit for a Plan Year means the compensation limitation under Code section 401(a)(17) (or the limit under Section 1081.01(a)(12) of the Puerto Rico Internal Revenue Code (the “PR Code”), whichever applies) in effect for such Plan Year.  For the Plan Year beginning January 1, 2018, the 401(a)(17) Limit is $275,000 and is thereafter indexed for inflation.  
Example 1:  Assume that for the 2018 Plan Year, Participant A is also a participant in the Nordstrom 401(k) Plan & Profit Sharing (the “Qualified Plan” for purposes of this Section 3.4(c)).  During the 2018 Plan Year, Participant A’s 401(k) Plan Compensation was $275,000 and Participant A deferred $10,000 into this Plan.  The 401(a)(17) Limitation in effect for the 2018 Plan Year was $275,000.  Participant A’s 2018 401(k) 

7

Plan Compensation determined without regard to the 401(a)(17) Limit was $305,000.  Consequently, Participant A’s Unlimited 401(k) Plan Compensation for the 2018 Plan Year was $315,000 ($305,000 plus $10,000). Participant A’s Excess Compensation was $40,000 ($315,000 less Participant’s $275,000 401(k) Plan Compensation).

The Restoration Contribution allocable with respect to a Participant’s Excess Compensation shall be the lesser of:

(1)    the maximum matching contribution amount that could be generated by applying the matching contribution formula in effect under the Participant’s 401(k) Plan for such Plan Year to the Participant’s Excess Compensation, if any; and

(2)    the amount actually deferred by Participant into this Plan for such Plan Year, if any. 

Example 2:  Same facts as in Example 1.  Assume further that the matching formula under the Qualified Plan was 100% of Participant’s elective deferrals under the Qualified Plan, up to 4% of Participant’s 401(k) Plan Compensation.  From Example 1, Participant A’s Excess Compensation for the 2018 Plan Year was $40,000. Applying the Qualified Plan’s matching contribution to Participant A’s Excess Compensation, the maximum match generated by the Excess Compensation would be $1,600 (i.e., dollar for dollar, up to 4% of Participant’s Excess Compensation). Accordingly, the Restoration Contribution allocable to Participant A under this Plan with respect to the 2018 Plan Year would be $1,600 (the lesser of (i) the maximum matching contribution generated by Participant A’s Excess Compensation and (ii) Participant A’s $10,000 Plan deferral.)

In the event that the Participant is eligible to receive matching contributions under Participant’s 401(k) Plan under more than one formula during a given Plan Year, then the Restoration Contribution above shall be calculated through application of each applicable 401(k) Plan matching formula under (1) and (2) above, with the resulting amounts added together to arrive at the total Restoration Contribution for that Plan Year.

Example 3: Same facts as in Example 2.  Assume further that a second matching contribution is declared under the Qualified Plan for the 2018 Plan Year.  The formula for this second matching contribution was 50% of Participant’s elective deferrals under the Qualified Plan, up to 4% of Participant’s 401(k) Plan Compensation.  Applying the Qualified Plan’s second matching contribution to Participant A’s Excess Compensation, the maximum match generated by the Excess Compensation would be $800 (i.e., fifty percent (50%) of the lesser of (i) the amount deferred into this Plan or 

8

(ii) 4% of Participant’s Excess Compensation). Accordingly, the Restoration Contribution allocable to Participant A under this Plan with respect to the 2018 Plan Year would be $800 (the lesser of (i) the maximum matching contribution generated by Participant A’s Excess Compensation and (ii) Participant A’s $10,000 Plan deferral.)

Participant A’s total Restoration Contribution for the 2018 Plan Year would be $2,400 ($1,600 under the first matching contribution formula plus $800 under the second matching contribution formula).

The time and form of payment of Restoration Contributions shall be determined by the Participant’s deferral elections applicable for Base Compensation paid during the Plan Year preceding the Plan Year in which the Restoration Contribution is actually credited to the Participant’s Account. For example, the time and form of payment of Restoration Contributions credited in early 2015 with respect to Participant’s Excess Compensation earned in the 2014 Plan Year shall be determined on the Participant’s deferral elections applicable for Base Compensation paid during the 2014 Plan Year. If no such deferral election exists, then the time and form of payment of the Participant’s Restoration Contribution for such Plan Year shall be as a single lump sum payment made at Participant’s Separation. Restoration Contributions will be subject to the same vesting schedule that would have applied to such Restoration Contributions had they been made as Company matching contributions to the Participant under the 401(k) Plan. 

A Participant is ineligible to receive a Restoration Contribution for any Plan Year in which such Participant either (i) is ineligible to receive a Company matching contribution allocation under the 401(k) Plan due to application of the 401(k) Plan’s employment and/or hours of service requirements to receive such matching contribution allocation or (ii) is a participant in the SERP, unless the Compensation Committee determines otherwise.

For the avoidance of doubt, (x) to receive a Restoration Contribution with respect to a given Plan Year, the Participant must have made a deferral under this Plan for such Plan Year and (y) a Participant can receive a Restoration Contribution under this Plan with respect to a given Plan 
Year whether or not the Participant made a deferral election under the 401(k) Plan for such Plan Year.

3.5    Deferral of Signing Bonus, Retention Bonus or Separation Payments Prohibited.  A Participant may not defer any amounts paid to the Participant that are designated by the Company as a signing bonus, a retention bonus, or separation payments.  A “signing bonus” is any amount paid to a newly hired Employee specifically as an incentive to accept a position with the Company.  A “retention bonus” is any amount paid to an existing Employee specifically in exchange for an agreement to remain an Employee of the Company for a specified period.  A “separation payment” is any amount paid to an Employee as a result of termination of employment with the Company; provided, however, that nothing in this Section 3.5 shall prevent the Company from negotiating a 

9

separation agreement, the provisions of which include a Company Discretionary Contribution under Section 3.4(b).

3.6    Requirement for Deferral Agreement.  A Participant who has not timely submitted a valid Deferral Agreement may not defer any Eligible Compensation (or receive the corresponding Company Make-up Contribution or Restoration Contribution allocation under 3.4) for the applicable Plan Year under the Plan.

3.7    Applicability of Deferral Agreement    .  

(a)    General Rule. Except as provided in this Section 3.7, a Deferral Agreement shall be irrevocable and remains in effect for the entire Plan Year to which it applies.  A Participant must file a new Deferral Agreement to continue deferrals in any subsequent Plan Year.  The terms of any Deferral Agreement may, but need not be, similar to the terms of any prior Deferral Agreement.

(b)    Exceptions to Irrevocability.

(1)    Financial Hardship.   A Participant’s Deferral Agreement shall be automatically canceled and deferrals shall cease for the remainder of the Plan Year if the Participant:

(A)    receives a distribution due to an unforeseeable financial emergency, as described in Section 6.2(a)(1), or

(B)    receives a hardship distribution from the 401(k) Plan pursuant to Treasury Regulation 1.401(k)-1(d)(3).

(2)    Disability.  A Deferral Agreement shall be canceled if a Participant becomes Disabled.  For purposes of this section, “Disabled” means that a Participant suffers from a medically determinable physical or mental impairment resulting in his or her inability to perform the duties of his or her position or any substantially similar position for a continuous period of not less than six months.

(c)    Resuming Participation.  A Participant may elect to resume deferrals under this Plan at any subsequent Annual Election Period, provided that the Participant satisfies the Plan’s eligibility requirements in effect at that time.  In addition, if the reason for revocation of the Deferral Agreement was receipt of a hardship distribution under the 401(k) Plan, the Participant must wait until an Annual Election Period that begins at least six months after the Participant received the hardship distribution from the 401(k) Plan before electing to resume deferrals under this Plan. 

ARTICLE IV
DEFERRAL ACCOUNT AND CREDITING

4.1    Account.  A Participant’s “Account” is the account established on the books of the Company as a record of each Participant’s Plan balance.  An Account may, at the discretion of the 

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Administrative Committee, include one or more sub‐accounts to reflect amounts credited to a Participant under the various terms of the Plan.  As of the effective date of this Restatement, the Administrative Committee has established the following sub-accounts:

(a)    Deemed Investment Sub-Account:  A Deemed Investment Sub-Account, reflecting the Participant’s account balance resulting from the deferral of Eligible Compensation (other than Performance Share Units, Restricted Stock Units or other stock-based compensation), Company Contribution allocations under Section 3.4, and the Participant’s deemed investment of such amounts under Section 4.3.  The balance in such sub-account shall be expressed as a dollar amount.

(b)    Common Stock Unit Sub-Account.  A Common Stock Unit Sub-Account reflecting the number of Performance Share Units, Restricted Stock Units, or other stock-based compensation in which the Participant is vested and which the Participant has deferred under the Plan.  The balance in such sub-account shall be expressed in units, with each unit representing the value of one share of the Company’s Common Stock.

4.2    Time of Crediting Accounts.  Amounts deferred by a Participant under the Plan and any Company Contribution allocations made on behalf of that Participant shall be credited to the Participant’s Account as soon as administratively practicable after the date deferred amounts would otherwise have been received (or beneficially received in the case of Company contributions) by the Participant.  Subject to 4.4(c)(2) regarding the underwriting of the Plan’s investment vehicles, Earnings shall be credited to a Participant’s Account on the date determined by the Administrative Committee, but no later than the month following the month in which deferrals and Company contributions were credited to the Account in accordance with the preceding sentence.  Earnings are based on the performance of the investment options selected by Participants in accordance with Section 4.3.

4.3    Participant Deemed Investments.  Subject to Section 4.3(b), each Participant may, from time to time, select from the various indices provided by the Administrative Committee (under Section 4.4(b)) in which his or her Account will be deemed invested; provided, however, that the Administrative Committee is under no obligation to acquire or provide any of the investments designated by the Participant.

(a)    Deemed Investment Sub-Account Valuation.  A Participant’s Deemed Investment Sub-Account shall be credited or debited from time to time, as determined by the Administrative Committee, with additional amounts equal to the appreciation (or loss) such accounts would have experienced had they actually been invested in the specified fund indices at the relevant times.  This crediting and debiting will take into account the date that a Participant’s Account transactions (such as deferrals, contributions, distributions and transfers among funds) are actually reflected by the Plan’s record-keeping system.

(b)    Common Stock Unit Sub-Account Valuation.  The number of units in a Participant’s Common Stock Unit Sub-Account shall be appropriately adjusted periodically to reflect any dividend, split, split-up or any combination or exchange, however accomplished, with respect to the shares of the Company’s Common Stock represented by such units.

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4.4    Investments by the Company    .  In order to provide funds to satisfy its obligations under the Plan, the Company may, but shall not be required to, keep cash or invest and reinvest in mutual funds, stocks, bonds, securities or any other assets as may be reasonably selected by the Administrative Committee in its discretion.  Such investments may, but need not, follow the investment indices chosen by the Participants.

(a)    Investment Advice.  In the exercise of the foregoing investment powers, the Administrative Committee may engage investment consultants and, if the Administrative Committee so desires, may delegate to such consultants full or limited authority to select the assets in which the funds are to be selected.  Investment consultants may be officers or employees of the Company or outside consultants.

(b)    Choice of Investment Indices.  The Administrative Committee, or its investment consultants, may specify one or more investment funds to serve as indices for the investment performance of amounts credited under the Accounts.  The Administrative Committee has the authority to expand or limit the type or number of fund indices and to prescribe, in conjunction with Leadership Benefits, the frequency with which Participants may change their deemed investment elections.

(c)    Insurance.  If the Administrative Committee elects to purchase an insurance policy or policies insuring the life of the Participant to allow the Company to recover the cost of providing the benefits hereunder:

(1)    The Participant shall, as a condition to continued participation in the Plan, sign any papers and undergo any medical examinations or tests that may be necessary or required for such purpose; 

(2)    Notwithstanding the Participant’s election or direction or any provision in the Plan to the contrary, the Participant’s Account may be deemed invested in a money market fund or instrument or other liquid asset selected by the Administrative Committee or its delegate, pending the underwriting and delivery of such policy or annuity; and

(3)    The Participant, Participant’s Beneficiary, and any other person claiming through the Participant shall not have or acquire any rights whatsoever in such policy or policies or in the proceeds of the policies.

4.5    Limited Effect of Allocation.  The fact that any allocation shall be made and credited to an Account shall not vest in a Participant any right, title or interest in or to any assets of the Company, or in any right to payment, except at the time(s) and upon the conditions elsewhere set forth in the Plan.

4.6    Report of Account.  A Participant shall be provided information regarding Participant’s Bookkeeping Account balance within a reasonable time after requesting such information from Leadership Benefits.  Leadership Benefits shall furnish each Participant statements on a periodic 

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basis, no less frequently than annually, as soon as administratively practicable after the allocations for the end of the Plan Year have been completed.  Leadership Benefits may, in its discretion, provide Participants with account balance statements more frequently than provided in the preceding sentence.
ARTICLE V
RIGHTS OF PARTICIPANT IN PLAN

5.1    Ownership Rights in Account    .  Subject to the restrictions provided in this Article and in Section 3.2(c), each Participant shall at all times have a vested right to the value of such Participant’s Account.

5.2    Rights in Plan are Unfunded and Unsecured.  The Company’s obligation under the Plan shall in every case be an unfunded and unsecured promise to pay.  A Participant’s right to Plan distributions shall be no greater than the rights to payment of general, unsecured creditors of the Company.  The Company may establish one or more grantor trusts (as defined in Code Section 671 et seq.) to facilitate the payment of benefits hereunder; however, the Company shall not be obligated under any circumstances to fund its financial obligations under the Plan.  Any assets which the Company may acquire or set aside to defray its financial liabilities shall be subject to the claims of its general creditors in the event of the Company’s insolvency.

5.3    No Transfer of Interest in Plan Allowed.  Except as permitted by applicable law, no sale, transfer, alienation, assignment, pledge, collateralization or attachment of any benefits under the Plan shall be valid or recognized by the Company.  The Participant, the Participant’s spouse and a designated Beneficiary shall not have any power to hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the benefits payable under the Plan.  Said benefits shall not be subject to seizure for the payment of any debts, judgments, alimony, maintenance owed by the Participant or a Beneficiary, or be transferable by operation of law in the event of bankruptcy, insolvency, or otherwise.  Notwithstanding the foregoing, the Company may, if the Administrative Committee so determines in its sole discretion, follow the terms of any court order issued in connection with any domestic relations proceeding including but not limited to marital dissolution or child support.

5.4    Plan Binding Upon Parties.  The Plan shall be binding upon the Company, its assigns, and any successor company that acquires substantially all of its assets and business through merger, acquisition or consolidation; and upon all Participants and any Participant’s Beneficiaries, assigns, heirs, executors and administrators.

5.5    Application of Clawback Policy.  This section applies if the Board elects to apply the compensation recovery policy contained in the Nordstrom Corporate Governance Guidelines (the “Clawback Policy”) to a Participant.  To the extent that any amount in a Participant’s Account is attributable to contributions based on compensation that is subject to recovery under the Clawback Policy, such amount (adjusted for investment gains and losses) shall be removed from the Participant’s Account and shall be permanently and irrevocably forfeited.  The provisions of this section for removal of amounts from a Participant’s Account shall also apply to the Beneficiary of a Participant after the Participant’s death. 

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ARTICLE VI
DISTRIBUTIONS

6.1    Separation Distributions.  

(a)    Separation Events.  A Participant may elect in a Deferral Agreement to receive a distribution of his or her Account at Separation.  A Participant’s “Separation” shall mean the Participant’s Termination Date.

(b)    Separation Distribution Forms.  Distribution of a Participant’s Account balance shall be made according to the distribution options specified in the Participant’s Deferral Agreement(s).  Portions of Accounts subject to installment payment shall continue to be valued as provided in Section 4.3 until distributed.  The distribution options available to a Participant are: 

(1)    single lump sum payment; or

(2)    installment payments for a period of five (5), ten (10) or fifteen (15) years. The amount of lump sum payments under this subsection (b) shall be determined as of the last day of the month in which the Participant's Termination Date occurs.
 
(c)    Lump Sum in Lieu of Installments.  If the Participant’s Account balance as of his or her Separation is equal to or less than $10,000, Leadership Benefits may order the distribution of the Participant’s entire Account in a single lump sum rather than in installments, provided that the lump sum payment results in the termination and liquidation of the Participant’s entire interest under this Plan and all other plans or arrangements that must be aggregated with this Plan under the rules set forth under Code Section 409A.  The Participant may not exercise any discretion to convert an installment election into a lump sum under this provision.
    
(d)    Amount and Timing of Installment Payments.  The first installment shall be paid on the Payment Commencement Date as defined in 6.4.  Subsequent installments shall be paid annually in January of each succeeding year.  The amount of each installment shall be determined by multiplying the Participant’s account balance as of the end of the month in which the scheduled distribution date occurs (as determined under Section 6.2(b) for In-Service Distributions or upon Separation for all other distributions) by a fraction, the numerator of which is one (1) and the denominator of which is (N minus P), where N is the total number of annual installments and P is the number of annual installments previously paid to the Participant.  For example, if the form of payment is five annual installments, the first annual distribution is the account balance divided by 5 (5 minus 0), the second annual distribution is the account balance divided by 4 (5 minus 1), the third annual distribution is the account balance divided by 3 (5 minus 2), the fourth annual distribution is the account balance divided by 2 (5 minus 3), and the fifth annual distribution is the entire remaining account balance (5 minus 4).

6.2    In-Service Distributions.  While a Participant is employed by the Company, a subsidiary or affiliate, the Participant may receive in-service Plan distributions as provided in this Section 6.2.

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(a)    Unforeseeable Financial Emergency.  At the request of a Participant, the Administrative Committee may, in its sole discretion, pay all or part of the value of the Participant’s Account in the event of an unforeseeable financial emergency.

(1)    Financial Emergency.  In this context, an “unforeseeable financial emergency” is defined as a severe financial hardship resulting from one of the following:

(A)    illness or accident of the Participant, the Participant’s spouse or dependent (as defined in Code Section 152(a)), or the Participant’s designated Beneficiary;

(B)    loss of the Participant’s property due to casualty; or

(C)    other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

(2)    Amount.  The amount of an accelerated distribution shall be limited to an amount necessary to relieve such emergency, which may include amounts necessary to pay any federal, state, and local taxes or penalties reasonably anticipated to result from the distribution.  Amounts available to the Participant due to the cancellation of the Participant’s deferral election for the remainder of the Plan Year must be taken into account in determining the amount necessary to satisfy the emergency need. If the Participant’s entire Account balance is distributed pursuant to this Section 6.2(a), the amount of the distribution shall be determined as of the end of the month preceding the distribution date

(3)    Effect of Other Financial Resources.  A distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or may be alleviated by reimbursement or compensation from insurance, liquidation of other assets (provided that the liquidation would not itself cause a severe hardship), or the cancellation of deferrals for the remainder of the Plan Year under the Plan.

(4)    Distribution Hierarchy.  If a Participant qualifies for a distribution due to unforeseeable financial emergency, the Participant must first exhaust amounts available from his or her paid-time off bank under the Company’s Sabbatical Program before receiving a distribution from this Plan. 

(b)    Scheduled Distributions.  During any Election Period, a Participant may, in connection with his or her election to defer compensation, specify a withdrawal date for all or part of his or her compensation deferred pursuant to the election made during the Election Period.  A Participant’s scheduled distribution election must specify a distribution date that occurs after the Participant’s deferrals that are subject to the election have been in the Plan for at least two complete Plan Years (for example, deferrals elected during the 2017 Annual Election Period can first be scheduled for distribution in 2021).  The Participant must elect the calendar year and the month (either January or June) of the scheduled distribution.  The amount payable to a Participant in 

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connection with a scheduled distribution shall in all cases be a specified dollar amount or a specified percentage of the Participant’s Account balance for the Plan Year to which the Deferral Agreement applies.  If a distribution event occurs with respect to a Participant before the scheduled distribution date, the Plan provisions applicable to the distribution event will take precedence over the Participant’s scheduled distribution election. The amount of the distribution under this subsection (b) shall be determined as of the last day of the month before the scheduled distribution.

6.3    Pre-Retirement Separation.  For Plan Years commencing prior to January 1, 2014, and for the portion of a Participant’s Account that is attributable to elective deferrals and Company contributions credited to the Account for Plan Years ending through December 31, 2013, if a Participant’s Termination Date occurs prior to his or her Early Retirement Date, Normal Retirement Date, or Deferred Retirement Date (a “Pre-Retirement Separation”), the time and form of payment elections in the Participant’s Deferral Agreements shall be disregarded and, in lieu of those elections, the Participant shall receive the value of his or her Account in a single lump sum payment on the Payment Commencement Date set forth in Section 6.4(b) and the amount of the distribution shall be determined as of the last day of the month in which the Participant’s Termination Date occurs. Commencing on and after January 1, 2014, the provisions of this Section 6.3 shall not apply to the portion of a Participant’s Account that is attributable to deferrals and Company contributions made with respect to Plan Years commencing January 1, 2014 and thereafter, including Earnings thereon; instead, this portion of a Participant’s Account shall at all times be distributable as provided in Section 6.1(b) (subject to 6.1(c)).
 
6.4    Payment Commencement Date.  Distributions will begin to be paid on the following dates, subject to the delay for Specified Employees set forth in 6.5.

(a)    Scheduled Distribution.   During the calendar month (January or June) and year specified by the Participant in his or her deferral election.

(b)    Separation Distributions.  Within 90 days after Leadership Benefits confirms the Separation, provided that the Participant does not have the right to designate the taxable year of payment.

(c)    Unforeseeable Financial Emergency.  Within 90 days after Leadership Benefits receives confirmation of the amount of distribution approved by the Administrative Committee, provided that the Participant does not have the right to designate the taxable year of payment.

6.5    Delayed Payment Date.  If a distribution is made to a Specified Employee following his or her Separation, the first payment may not be made earlier than six months after the Specified Employee’s Payment Commencement Date.  If the form of distributions is installments, any installments that would have been paid in the absence of this six-month delay will be accrued and paid at the end of the six-month period.  Any installments that are due after the six-month period expires will be paid as if they were not subject to this provision.  A Specified Employee means an individual who meets the requirements to be a “key employee” as defined in Code Section 416(i) (without regard to Section 416(i)(5)).  If the individual is a key employee as of September 30 of a given year, the individual is treated as a Specified Employee for the entire next calendar year.  This 

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delayed payment date rule does not apply to scheduled in-service distributions, financial emergency distributions, or distributions due to the Participant’s death.

6.6    Changing the Time or Form of Distribution.  The time and form of payment elected in a Participant’s Deferral Agreements cannot be changed by the Participant after the last day of an Election Period except as provided in this section.  A Participant may change his or her form of Retirement distribution under 6.1(b) or the timing of a scheduled in-service distribution under 6.2(b), provided that:
    
(a)    For a scheduled in-service or Separation distribution, his or her change is filed with Leadership Benefits no later than the last day of the Plan Year that ends at least 12 months before the Payment Commencement Date;

(b)    His or her change cannot take effect earlier than twelve months after the change is requested; and

(c)    the first payment under the newly elected form of payment cannot be made sooner than five years after the Payment Commencement Date for the form of payment that the Participant has elected to change.

The Payment Commencement Date for a series of installment payments is treated as the date on which the first of such installment payments would be made under the terms of this Plan.  Where the Payment Commencement Date is stated as a period of time (e.g., a 90-day period following a distribution event), the Payment Commencement Date for purposes of this section is the first day of such period. 

6.7    Cash and Stock Distributions.  Distributions of a Participant’s Deemed Investment Sub-Account Account shall be made in cash only.  Distributions of a Participant’s Common Stock Unit Sub-Account shall be made in Common Stock of the Company.

6.8    Postponement of Non-Deductible Distributions.
  
(a)    When Applicable.  If the Administrative Committee determines in good faith prior to a Change in Control that there is a reasonable likelihood that any Compensation paid to a Participant for a taxable year of the Company would not be deductible by the Company solely by reason of the limitation under Code section 162(m), then to the extent deemed necessary by the Administrative Committee to ensure that the entire amount of any distribution to the Participant pursuant to this Plan prior to the Change in Control is deductible, the Administrative Committee may defer all or any portion of the distribution.  After a Change in Control, the Administrative Committee shall not have discretion to postpone payments under this provision, and all payments will be made on the dates provided in the Plan.

(b)    Administration of Deferred Distributions.  Any distributions deferred pursuant to this limitation shall continue to be credited with interest or earnings pursuant to the terms hereof.  Where a payment to a Participant is delayed under this provision, all other payments to that same 

17

Participant that could be delayed under this provision must also be delayed.  The amounts so deferred and interest thereon shall be distributed to the Participant or his or her Beneficiary (in the event of a death benefit required hereunder) at the earliest possible date, as determined by the Administrative Committee in good faith, on which the deductibility of compensation paid or payable to the Participant for the taxable year of the Company during which the distribution is made will not be limited by Code section 162(m), or if earlier, the effective date of a Change in Control.

(c)    “Change in Control” Defined.  For purposes of this Plan, Change in Control means the first of the following (1), (2), or (3) to occur.

(1)    Change in Ownership of Stock. Any person, entity or group of persons purchases or acquires, within the meaning of section 13(d) or 14(d) of the Securities Exchange Act of 1934 (“Act”), or any comparable successor provisions, beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) of Company stock that, together with stock already held by such person, entity, or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company.

(2)    Change in Effective Control.  Either of the following occurs, representing a change in effective control of the Company:

(A)    Voting Power.  Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by the person or group) ownership of Company stock constituting 30% or more of the total voting power of Company stock; or

(B)    Board Composition.  A majority of the members of the Company’s Board of Directors is replaced during any period of 12 consecutive months by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors prior to the date of the appointment or election.

(3)    Change in Ownership of Assets.  Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) Company assets that have a total gross fair market value equal to or greater than 40% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.  Gross value means the value of the assets determined without regard to any liabilities associated with such assets.  However, a Change in Control does not occur to the extent that ownership of assets is transferred to:

(A)    a Company shareholder (immediately before the asset transfer) in exchange for or with respect to his or her Company stock;

(B)    an entity, 50% or more of the total value or voting power of which is owned directly or indirectly by the Company;

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(C)    a person, or more than one person acting as a group, that owns directly or indirectly 50% or more of the total value or voting power of the Company;

(D)    an entity, at least 50% of the total value or voting power of which is owned directly or indirectly by a person described in (C).

(4)    Interpretation.  These provisions shall be interpreted and applied in a manner that is consistent with Department of Treasury regulations under Section 409A of the Code. 

6.9    Acceleration of Payment.  Generally, neither the Company nor any Participant may accelerate the timing of any payment under the Plan, except as specifically set forth in this Plan document.  However, the Administrative Committee retains the discretion to accelerate distribution of any payment to the extent such acceleration is specifically permitted under the final regulations under Code Section 409A.  Such accelerations include, but are not limited to, a distribution to permit a Participant to pay taxes on amounts deferred under this Plan, including any taxes that may be imposed under Code Section 409A, and distribution pursuant to a domestic relations order (as defined in Section 414(p)(1)(B) of the Code).

6.10    Post-Distribution Allocations.  If a Participant’s Account is credited after the Participant has received a full distribution of his or her Account, the remaining balance in the Account shall be paid to the Participant in a lump sum as soon as administratively practical.  

ARTICLE VII
DEATH BENEFITS

7.1    Designation of Beneficiary.  A Participant shall designate a Beneficiary to receive death benefits under the Plan by completing the beneficiary designation form specified by the Administrative Committee.  A Participant shall have the right to change the Beneficiary by submitting a form designating the Participant’s change of Beneficiary in accordance with procedures established by the Administrative Committee.  No beneficiary designation or change of beneficiary shall be effective until approved by Leadership Benefits.

7.2    Married Participants.  If a Participant is married, his or her legal spouse shall be the designated Beneficiary, unless the spouse consents in writing to designation of a different Beneficiary on a form acceptable to the Administrative Committee.

7.3    Deemed Beneficiary.  For Participants who die on or after January 1, 2011, if a valid beneficiary designation has not been made, or if the designated beneficiary has predeceased the Participant, then the Participant will be deemed to have designated the following as his or her surviving beneficiaries and contingent beneficiaries with priority in the order named below:

(a)    first, to the Participant’s surviving spouse, as defined under federal law, or the Participant’s registered life partner, as defined under the Nordstrom Welfare Benefit Plan; or

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(b)    if the Participant does not have a surviving spouse or registered life partner, to his or her estate. 

Notwithstanding the foregoing, the 2007 Restatement of this Plan, and not this Restatement, shall apply to determine beneficiaries of Participants who died prior to January 1, 2011. 

7.4    Surviving Beneficiary    .  For purposes of determining the appropriate named or deemed beneficiary or contingent beneficiary, an individual is considered to survive the Participant if that individual is alive seven (7) days after the date of the Participant’s death.

7.5    Determination of Account Balance at Death.  The value of a Participant’s Account shall be determined as of the later of: (a) the date of the Participant’s death; or (b) the date the Administrative Committee approves the distribution under Section 7.6.  The amounts in such Account shall be maintained in the deemed investment Sub-Accounts under Section 4.3 after the Participant’s death and until the time of distribution, unless the Participant’s Beneficiary elects in writing to transfer such amounts from the deemed investment accounts into a separate interest-bearing account designated by the Administrative Committee for this purpose.  Upon transfer to the interest-bearing account, the Account shall no longer be deemed invested under Section 4.3(a) and will not be adjusted for deemed investment gains and losses.

7.6    Distribution of Account Balance at Death.  Upon a Participant’s death, the portion of a Participant’s Account that is attributable to deferrals and Company contributions made with respect to Plan Years commencing January 1, 2014 and later, including Earnings thereon, shall at all times be distributable as provided in Section 7.6.  Distributions of the portion of a Participant’s Account that is attributable to deferrals and Company contributions made with respect to Plan Years ending prior to January 1, 2014 shall be governed by the Plan provisions in effect in the previous version of this Plan document. By way of reference, and as provided in Section 7.6 of the previous version of this Plan document, if the Participant dies prior to “Retirement” (as that term is defined in the previous version of this Plan document) while an employee of the Company and such Participant’s death is not attributable to suicide committed within two years after becoming a Participant, such Beneficiary shall receive an amount equal to twice the Participant’s actual deferrals under Section 3.2 that have been credited to the Participant’s Account as of December 31, 2007 (exclusive of any earnings thereon).  Compensation deferred after December 31, 2007 shall not be taken into account in calculating this pre-retirement death benefit.

7.7    Determination of Beneficiary.  If the Administrative Committee has any doubt as to the proper Beneficiary to receive payments hereunder, the Administrative Committee shall have the right to direct the Company to withhold such payments until the matter is finally adjudicated.  However, as provided in Section 11.8, any payment made by the Company, in good faith and in accordance with the Plan and the directions of the Administrative Committee shall fully discharge the Company, the Board and the Administrative Committee from all further obligations with respect to that payment.

7.8    Payments to Minor or Incapacitated Beneficiaries.  In making distributions from the Plan to or for the benefit of any minor or incapacitated Beneficiary, the Administrative Committee, in 

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its sole and absolute discretion, may direct the Company to make such distribution to a legal or natural guardian of such Beneficiary, or to any adult with whom the minor or incompetent temporarily or permanently resides.  The receipt by such guardian or other adult shall be a complete discharge of liability to the Company, the Board, and the Administrative Committee.  Neither the Board, the Administrative Committee, nor the Company shall have any responsibility to see to the proper application of any payments so made.

7.9    Effect of Divorce.  If a Participant and his or her Designated Beneficiary are or become married and thereafter their marriage is dissolved by entry of a decree of dissolution or other court order having the effect of dissolving the marriage, then any such pre-divorce Beneficiary designation shall be deemed automatically revoked as to such Beneficiary spouse as of the date of such dissolution unless the death benefit rights of such former spouse are subsequently reaffirmed by a qualified domestic relations order or the Participant’s subsequent written designation.

ARTICLE VIII
ADMINISTRATION OF THE PLAN

8.1    Plan Sponsor and Administrator.  The Company is the “Plan Sponsor,” and its address is:  Nordstrom, Inc., 1700 Seventh Avenue, Seattle, Washington 98101-4407.  The Administrative Committee is the “Plan Administrator.”

8.2    Powers and Authority of the Company.  The Company, acting through the Compensation Committee of its Board of Directors, has the following absolute powers and authority under the Plan:

(a)    To amend or terminate the Plan, at any time and for any reason;

(b)    To determine the amount, timing, vesting, and other conditions applicable to Plan contributions and benefits;

(c)    To set aside funds to assist the Company to meet its obligations under this Plan, provided that the funds are set aside in a manner that does not result in immediate taxation to Participants;

(d)    To establish investment policy guidelines applicable to funds (if any) set aside under (c);

(e)    To establish one or more grantor trusts (as defined in Code Section 671 et seq.) to facilitate the payment of benefits under the Plan;

(f)    To take any such other actions as it deems advisable to carry out the purposes of the Plan; and

(g)    To delegate its authority to any officer, employee, committee or agent of the Company, as it deems advisable for the effective administration of the Plan.

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8.3    Administrative Committee.  

(a)    Role of Administrative Committee.  The Company has appointed the Administrative Committee to act as Plan Administrator.  All actions taken by the Administrative Committee, or by its delegate, as Plan Administrator will be conclusive and binding on all persons having any interest under the Plan, subject only to the provisions of Article IX.  All findings, decisions and determinations of any kind made by the Administrative Committee or its delegate shall not be disturbed unless the Administrative Committee has acted in an arbitrary and capricious manner.

(b)    Powers and Authority.  The Administrative Committee has the following powers and authority under the Plan:

(1)    In the exercise of its sole, absolute, and exclusive discretion, to construe and interpret the terms and provisions of the Plan, to remedy and resolve ambiguities, to grant or deny any and all non-routine claims for benefits and to determine all issues relating to eligibility for benefits;

(2)    To authorize withdrawals due to unforeseeable financial emergency;

(3)    To amend the Plan for legal, technical, administrative, or compliance purposes, as recommended by legal counsel;

(4)    To retain and pay service providers whose services the Administrative Committee deems necessary to effective administration of the Plan;

(5)    To implement, in the manner it deems appropriate, the investment policy guidelines established by the Compensation Committee; and

(6)    To delegate its authority to any officer, employee, committee or agent of the Company, as it deems advisable for the effective administration of the Plan, any such delegation to carry with it the full discretion and authority vested in the Administrative Committee.

(7)    To adopt such administrative policies, procedures and protocols as it deems advisable for the effective administration of the Plan.

(c)    Exercise of Authority.  All resolutions or other actions taken by the Administrative Committee shall be either:  (1) by vote of a majority of those present at a meeting at which a majority of the members are present; or (2) in writing by a majority of all the members at the time in office if they act without a meeting.

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8.4    Powers and Authority of Leadership Benefits.  Leadership Benefits, or any other person(s),  committee(s), department or group appointed by the Company’s Chief Human Resources Officer, has the following powers and authority under the Plan:

(a)    To carry out day-to-day administration of the Plan, including notifying Eligible Employees of the provisions of the Plan, approving and processing Deferral Agreements, providing Participants with statements of Account, approving and processing changes in the time and/or form of distributions, and forwarding non-routine distribution requests to the Administrative Committee;

(b)    To prepare forms necessary for the administration of the Plan, including Deferral Agreements, beneficiary designation forms, investment designation forms, and any other form or document deemed necessary to the effective administration of the Plan;

(c)    To approve and adopt communications to be furnished to Eligible Employees explaining the material provisions, terms, and conditions of the Plan;

(d)    To process routine distributions and to process non-routine distributions that have been approved by the Administrative Committee;

(e)    To negotiate and document agreements with Plan service providers, subject to final approval by the Administrative Committee;

(f)    To implement any policies or procedures approved by the Company or the Administrative Committee;

(g)    To recommend amendments to the Plan for adoption by the Company or the Administrative Committee; 

(h)    To work with Plan service providers to ensure the effective administration of the Plan; and

(i)    To perform any and all tasks, duties, and responsibilities delegated by the Company or the Administrative Committee.

8.5    Reliance on Opinions.  Each person or entity authorized to act under this Plan shall be entitled to rely on all certificates and reports made by any duly appointed accountants, and on all opinions given by any duly appointed legal counsel, including legal counsel for the Company.

8.6    Information.  The Company shall supply full and timely information on all matters relating to the compensation of Participants, the date and circumstances of the termination of employment or death of a Participant and such other pertinent information as may be necessary for the effective administration of the Plan.

8.7    Indemnification.  The Company shall indemnify and hold harmless each Administrative Committee or Board member, and each Company employee performing services or acting in any 

23

capacity with respect to the Plan, from and against any and all expenses and liabilities arising in connection with services performed in regard to this Plan.  Expenses against which such individual shall be indemnified hereunder shall include, without limitation, the amount of any settlement or judgment, costs, counsel fees and related charges reasonably incurred in connection with a claim asserted, or a proceeding brought or settlement thereof.  The foregoing right of indemnification shall be in addition to any other rights to which any such individual may be entitled as a matter of law or other agreement.  However, the right to indemnification does not apply where an expense or liability is incurred due to an individual’s fraudulent or intentionally dishonest acts.

ARTICLE IX
CLAIMS PROCEDURE

9.1    Submission of Claim.  Benefits shall be paid in accordance with the provisions of this Plan.  The Participant, or any person claiming through the Participant (“Claiming Party”), shall make a written request for benefits under this Plan, mailed or delivered to Leadership Benefits.  If the claim cannot be processed as a routine payment of benefits, Leadership Benefits will forward the claim to the Administrative Committee for review.

9.2    Denial of Claim.  If a claim for payment of benefits is denied in full or in part, the Administrative Committee or its delegate shall provide a written notice to the Claiming Party within ninety days after receipt of the claim setting forth:  (a) the specific reasons for denial; (b) any additional material or information necessary to perfect the claim; (c) an explanation of why such material or information is necessary; and (d) an explanation of the steps to be taken for a review of the denial.  A claim shall be deemed denied if the Administrative Committee or its delegate does not take any action within the aforesaid ninety day period.

9.3    Review of Denied Claim.  If the Claiming Party desires Administrative Committee review of a denied claim, the Claiming Party shall notify the Administrative Committee or its delegate in writing within sixty days after receipt of the written notice of denial.  As part of such written request, the Claiming Party may request a review of the Plan document or other pertinent documents, may submit any written issues and comments, and may request an extension of time for such written submission of issues and comments.

9.4    Decision upon Review of Denied Claim.  The decision on the review of the denied claim shall be rendered by the Administrative Committee within sixty days after receipt of the request for review.  The Administrative Committee may extend this period for up to sixty additional days with advance notice to the Claiming Party, an explanation of why the extension is necessary, and an estimated date of decision.  The decision shall be in writing and shall state the specific reasons for the decision, including reference to specific provisions of the Plan on which the decision is based.

ARTICLE X
AMENDMENT AND TERMINATION

The Plan may be amended or terminated at any time for any reason.  Such amendment or termination may modify or eliminate any benefit hereunder, provided that no such amendment or termination 

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shall in any way reduce the vested portion of the affected Participants’ or Beneficiaries’ Accounts.  To be effective, an amendment must be in writing and must be signed 
by a person who has amendment authority under the terms of the Plan.  Oral amendments or modifications to the Plan, and any written amendments that are not signed by an authorized person, are not valid or binding on the Company or any other person.  Upon termination of the Plan, the Board of Directors may elect to accelerate distribution of Participant Accounts, but only if the accelerated distribution would not result in additional tax to the Participant under Code Section 409A.
ARTICLE XI
MISCELLANEOUS

11.1    No Employment Contract.  The terms and conditions of the Plan shall not be deemed to constitute a contract of employment between the Company and an employee.  Nothing in this Plan shall be deemed to give an Eligible Employee the right to be retained in the service of the Company, its subsidiaries or affiliates or to interfere with any right of the Company, its subsidiaries or affiliates to discipline or discharge the Eligible Employee at any time.

11.2    Employee Cooperation.  As a condition to participation in the Plan, an Eligible Employee must cooperate with the Company by furnishing any and all information reasonably requested by any of the Company, its subsidiaries or affiliates, and take such other actions as may be requested to facilitate Plan administration and the payment of benefits hereunder.

11.3    Illegality and Invalidity.  If any provision of this Plan is found illegal or invalid, said illegality or invalidity shall not affect the remaining parts hereof, but the Plan shall be construed and enforced as if such illegal and invalid provision had not been included herein.

11.4    Required Notice.  Any notice which shall be or may be given under the Plan or a Deferral Agreement shall be in writing and shall be mailed by United States mail, postage prepaid, or in such other manner as the Company determines is appropriate.  If notice is to be given to the Company, such notice shall be addressed to the Company c/o Leadership Benefits Department, at 1700 Seventh Avenue, Suite 1000, Seattle Washington 98101-4407.  The appeal from a denied claim must be in writing and sent physically by mail or courier to Leadership Benefits.  If notice is to be given to a Participant, such notice shall be addressed to the last known address, either geographic or electronic, in the Company’s Human Resources records.  Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand‐delivered, or sent by mail (either physical or electronic), to the last known address of the Participant.  Any party may, from time to time, change the address to which notices shall be mailed by giving written notice of such new address.

11.5    Interest of Participant’s Spouse.  The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession.

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11.6    Tax Liabilities from Plan.  If all or any portion of a Participant’s benefit under this Plan generates a tax liability to the Participant, including a liability under Code Section 409A, prior to the time that the Participant is entitled to a distribution from the Plan, the Administrative Committee may, in its discretion, instruct the Company to distribute immediately available funds to the Participant in an amount necessary to satisfy such tax liability.

11.7    Benefits Nonexclusive.  The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of the Company.  The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

11.8    Discharge of Company Obligation.  The payment of benefits under the Plan to a Participant or Beneficiary shall fully and completely discharge the Company, the Board, and the Administrative Committee from all further obligations under this Plan with respect to a Participant, and that Participant’s Deferral Agreement shall terminate upon such full payment of benefits.

11.9    Costs of Enforcement.  If any action at law or in equity is necessary by the Administrative Committee or the Company to enforce the terms of the Plan, the Administrative Committee or the Company shall be entitled to recover reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which that party may be entitled.

11.10    Gender and Case.  Unless the context clearly indicates otherwise, masculine pronouns shall include the feminine and singular words shall include the plural and vice versa.

11.11    Titles and Headings.  Titles and headings of the Articles and Sections of the Plan are included for ease of reference only and are not to be used for the purpose of construing any portion or provision of the Plan document.

11.12    Applicable Law.  To the extent not preempted by federal law, the Plan shall be governed by the laws of the State of Washington.

11.13    Counterparts.  This instrument and any Deferral Agreement may be executed in one or more counterparts, each of which is legally binding and enforceable.

11.14    Additional Definitions:

		
	(a)
	“Board” means the Board of Directors of Nordstrom, Inc.

		
	(b)
	“Code” means the Internal Revenue Code of 1986, as amended.

(c)    “Deferred Retirement Date” means a Termination Date that occurs after a Participant’s Normal Retirement Date.

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(d)    “Early Retirement Date” means the Participant’s Termination Date on or after the date the Participant has both attained age 53 and has completed at least ten (l 0) Years of Service with the Company. Notwithstanding the foregoing, the 2007 Restatement of this Plan, and not this 
Restatement, shall apply to determine Early Retirement for those Participants designated as a 1999 Plan Executive under the Company’s Supplemental Executive Retirement Plan (“SERP”) and for those Participants who, as of August 19, 2003, had attained at least age fifty and had attained at least 10 Years of Service.

(e)    “Equity Incentive Plan” means the separately stated Nordstrom, Inc. 2010 Equity Incentive Plan, as amended through February 27, 2013 and as it may be thereafter amended from time to time, or any successor to the Equity Incentive Plan that provides for performance-based equity compensation.

(f)    “401(k) Plan” means, with respect to a Participant, any Company-sponsored, tax-qualified individual account retirement plan in which the Participant is eligible and which is subject to the requirements of ERISA, whether or not that plan provides for elective deferrals under Code section 401(k).  As of January 1, 2015, the definition of 401(k) Plan includes the following Company-sponsored plans:  Nordstrom 401(k) Plan (previously known as the Nordstrom 401(k) Plan & Profit Sharing), and Nordstrom Puerto Rico Retirement & Savings Plan..

(g)    “401(k) Plan Compensation” means “Compensation” as defined under the 401(k) Plan.

(h)    “Normal Retirement Date” means a Participant’s 58th birthday; provided, however, that the Normal Retirement Date for a Participant who was designated in 2003 as a Transition Plan Executive under the SERP shall be age 55.

(i)    “Participating Subsidiaries and Affiliates” means those subsidiaries and affiliates of the Company that, subject to approval by the Administrative Committee, have specifically acted to adopt this Plan through execution of a Participation Agreement. A list of Participating Subsidiaries and Employers as of January 1, 2017 appears as Exhibit A to this Amendment.

(j)    “Participation Agreement” means the written agreement evidencing the terms and conditions under which a particular Participating Subsidiary or Affiliate participates in this Plan.

		
	(k) 
	“Plan Year” means the calendar year.

(l)    “Termination Date” means the termination of a Participant’s employment with the Company, and each of its subsidiaries and affiliates, whether or not the subsidiary or affiliate participates in this Plan. A termination of employment is deemed to have occurred for purposes of this Plan on the date when the Participant and the Company reasonably anticipate that the level of bona fide services to be provided by the Participant will be permanently reduced to 49 percent or less of the average level of bona fide services provided in the immediately preceding period of 36 consecutive months. If the Participant is on a paid leave of absence, the Participant is treated as providing services at a level equal to the level of services that the Participant would have been 

27

required to perform to earn the amount of compensation paid during the paid leave of absence. If the Participant is on an unpaid leave of absence, the employment relationship is presumed to terminate on the earlier of (A) the date the Participant loses his or her statutory or contractual right 
to re-employment (but not sooner than six months after the unpaid leave of absence began) or (B) the date that there is no longer a reasonable expectation that the Participant will return to perform services for the Company.

(m)    “Years of Service” means consecutive full years (i.e., 12 months), based on service from the Participant’s most recent date of hire.

IN WITNESS WHEREOF, this instrument setting forth the terms and conditions of this amendment and restatement to the NORDSTROM EXECUTIVE DEFERRED COMPENSATION PLAN is executed this _________ day of ________, 2018, effective for compensation deferred and vested on and after November 1, 2017, except as otherwise provided herein.

	
		
	 
	NORDSTROM, INC.

By:                  

Title:                     

 

28

EXHIBIT A
(PARTICIPATING SUBSIDIARIES)

	
		
	Subsidiary
	Effective Date

	Nordstrom Puerto Rico LLC
	January  1, 2015

29

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