Document:

exv10w26

Exhibit 10.26

Adopted July 1, 2008

CLEAR CHANNEL

2008 EXECUTIVE INCENTIVE PLAN

1. DEFINED TERM

     Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets
forth certain operational rules related to those terms.

2. PURPOSE

     The Plan has been established to advance the interests of the Company and its Affiliates by
providing for the grant to Participants of Stock-based and other incentive Awards. Awards under the
Plan are intended to align the incentives of the Company’s executives and investors and to improve
the performance of the Company. Unless the Administrator determines otherwise, Awards to be granted
under this Plan are expected to be substantially in the form attached hereto as Exhibit B-1, B-2,
or B-3; provided, that all Rollover Option Agreements shall be substantially in the form attached
hereto as Exhibit C-1 or C-2 and all Restricted Stock Agreements shall be substantially in the form
attached hereto as Exhibit D, in each case unless the Administrator determines otherwise.

3. ADMINISTRATION

     The Administrator has discretionary authority, subject only to the express provisions of the
Plan and the Award Agreements, to interpret the Plan; determine eligibility for and grant Awards;
determine, modify or waive the terms and conditions of any Award; prescribe forms, rules and
procedures; and otherwise do all things necessary to carry out the purposes of the Plan. In the
case of any Award intended to be eligible for the performance-based compensation exception under
Section 162(m) of the Code, the Administrator will exercise its discretion consistent with
qualifying the Award for that exception. Except as otherwise provided by the express terms of an
Award Agreement, all determinations of the Administrator made under the Plan will be conclusive and
will bind all parties.

4. LIMITS ON AWARDS UNDER THE PLAN

     (a) Number of Shares. A maximum of 10,187,406 Shares may be delivered in satisfaction
of Awards under the Plan. The number of Shares delivered in satisfaction of Awards shall, for
purposes of the preceding sentence, be determined net of Shares (i) withheld by the Company in
payment of the exercise price of the Award or in satisfaction of tax withholding requirements with
respect to the Award, (ii) awarded under the Plan as Restricted Stock, but thereafter forfeited,
and (iii) made subject to an award that is exercised or satisfied, or that terminates or expires,
without the delivery of such shares. The limits set forth in this Section 4(a) shall be construed
to comply with Section 422 of the Code and the regulations thereunder. To the extent consistent
with the requirements of Section 422 of the Code and regulations thereunder and with other
applicable legal requirements (including applicable stock exchange requirements), shares of Stock
issued under awards of an acquired company that are converted, replaced or adjusted in connection
with the acquisition shall not reduce the number of Shares available for Awards under the Plan.

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Adopted July 1, 2008

     (b) Type of Shares. Stock delivered under the Plan may be authorized but
unissued Stock or previously issued Stock acquired by the Company or any of its subsidiaries. No
fractional Shares will be delivered under the Plan.

     (c) Section 162(m) Limits. The maximum number of Shares for which Stock Options may
be granted to any person in any calendar year and the maximum number of Shares subject to SARs
granted to any person in any calendar year will each be 2,700,000. The maximum number of Shares
subject to other Awards granted to any person in any calendar year will be 700,000 Shares. The
maximum amount payable to any person in any year under Cash Awards will be $20,000,000. The
foregoing provisions will be construed in a manner consistent with Section 162(m) of the Code.

5. ELIGIBILITY AND PARTICIPATION

     The Administrator will select Participants from among those key Employees and directors of,
and consultants and advisors to, the Company or its Affiliates who, in the opinion of the
Administrator, are in a position to make a significant contribution to the success of the Company
and its Affiliates; provided , that, subject to such express exceptions, if any, as the
Administrator may establish, eligibility shall be further limited to those persons as to whom the
use of a Form S-8 registration statement is permissible. Within 10 business days following the
Closing Date (as defined in the Merger Agreement dated as of November 16, 2006, as amended, among
Clear Channel Communications, Inc. and the other parties thereto), the Company shall file a Form
S-8 registration statement with respect to all Shares available for issuance under this Plan. The
Company shall use commercially reasonable efforts to maintain such Form S-8 while Awards granted
hereunder remain outstanding; provided however that nothing herein shall prevent the Company from
de-registering the Shares under the Plan if and to the extent they are no longer subject to the
reporting requirements of the Securities Exchange Act of 1934, as amended. Eligibility for ISOs is
limited to employees of the Company or of a “parent corporation” or “subsidiary corporation” of the
Company as those terms are defined in Section 424 of the Code.

6. RULES APPLICABLE TO AWARDS

     (a) All Awards

          (1) Award Provisions. The Administrator will determine the terms of all Awards,
subject to the limitations provided herein, and shall furnish to each Participant an Award
Agreement setting forth the terms applicable to the Participant’s Award. By entering into an Award
Agreement, the Participant agrees to the terms of the Award and of the Plan, to the extent not
inconsistent with the express terms of the Award Agreement. Notwithstanding any provision of this
Plan to the contrary, awards of an acquired company that are converted, replaced or adjusted in
connection with the acquisition may contain terms and conditions that are inconsistent with the
terms and conditions specified herein, as determined by the Administrator.

          (2) Transferability. Neither ISOs, nor, except as the Administrator otherwise
expressly provides, other Awards may be transferred other than by will or by the laws of descent
and distribution, and during a Participant’s lifetime ISOs (and, except as the Administrator
otherwise expressly provides, other non-transferable Awards requiring exercise) may be exercised
only by the Participant.

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          (3) Vesting, Etc. The Administrator may determine the time or times at which an
Award will vest or become exercisable and the terms on which an Award requiring exercise will
remain exercisable. Without limiting the foregoing, the Administrator may at any time accelerate
the vesting or exercisability of an Award, regardless of any adverse or potentially adverse tax
consequences resulting from such acceleration. Unless expressly provided otherwise by the
Administrator or an Award Agreement, automatically and immediately upon the cessation of
Employment, all outstanding Restricted Stock will be forfeited and all Awards requiring exercise
will cease to be exercisable and will terminate, except that:

     (A) subject to (B) and (C) below, all Stock Options and other Awards requiring exercise
held by the Participant or the Participant’s permitted transferees, if any, immediately prior to
the cessation of the Participant’s Employment, to the extent then exercisable, will remain
exercisable for the lesser of (i) a period of 90 days or (ii) the period ending on the latest
date on which such Stock Option or SAR could have been exercised without regard to this Section
6(a)(3), and will thereupon terminate;

     (B) all Stock Options and other Awards requiring exercise held by a Participant or the
Participant’s permitted transferees, if any, immediately prior to the termination of the
Participant’s Employment by reason of death or disability, to the extent then exercisable, will
remain exercisable for the lesser of (i) the one year period ending with the first anniversary
of the Participant’s death or disability, as the case may be, or (ii) the period ending on the
latest date on which such Stock Option or SAR could have been exercised without regard to this
Section 6(a)(3), and will thereupon terminate; and

     (C) all Stock Options and other Awards requiring exercise held by a Participant or the
Participant’s permitted transferees, if any, immediately prior to the cessation of the
Participant’s Employment will immediately terminate upon such cessation if such cessation of
Employment has resulted in connection with an act or failure to act constituting Cause.

          (4) Taxes. The Administrator will make such provision for the withholding of taxes as
it deems necessary. Except as otherwise provided in an Award Agreement, the Administrator may, but
need not, hold back Shares from an Award or permit a Participant to tender previously owned Shares
in satisfaction of tax withholding requirements (but not in excess of the applicable minimum
statutory withholding rate), using the Fair Market Value of Stock on the date of exercise to
determine the number of shares so withheld or tendered.

          (5) Dividend Equivalents, Etc. Except as otherwise provided in an Award Agreement,
the Administrator may provide for the payment of amounts in lieu of cash dividends or other cash
distributions with respect to Stock subject to an Award.

          (6) Rights Limited. Nothing in the Plan will be construed as giving any person the
right to continued Employment with the Company or its Affiliates, or any rights as a stockholder
except as to shares of Stock actually issued under the Plan. The loss of potential

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appreciation in Awards will not constitute an element of damages in the event of termination
of Employment for any reason, even if the termination is in violation of an obligation of the
Company or its Affiliate to the Participant.

          (7) Section 162(m). This Section 6(a)(7) applies to any Performance Award intended to
qualify as performance-based for the purposes of Section 162(m) of the Code other than a Stock
Option or SAR. In the case of any Performance Award to which this Section 6(a)(7) applies, the Plan
and such Award will be construed to the maximum extent permitted by law in a manner consistent with
qualifying the Award for such exception. With respect to such Performance Awards, the Administrator
will pre-establish, in writing, one or more specific Performance Criteria no later than 90 days
after the commencement of the period of service to which the performance relates (or at such
earlier time as is required to qualify the Award as performance-based under Section 162(m) of the
Code). Prior to grant, vesting or payment of the Performance Award, as the case may be, the
Administrator will certify whether the applicable Performance Criteria have been attained and such
determination will be final and conclusive. No Performance Award to which this Section 6(a)(7)
applies may be granted after the first meeting of the stockholders of the Company held in 2013
until the listed performance measures set forth in the definition of “Performance Criteria” (as
originally approved or as subsequently amended) have been resubmitted to and reapproved by the
stockholders of the Company in accordance with the requirements of Section 162(m) of the Code,
unless such grant is made contingent upon such approval.

          (8) Stockholders Agreement. Unless otherwise specifically provided in an Award
Agreement, all Awards issued under the Plan and all Stock issued thereunder will be subject to the
Stockholders Agreement.

          (9) Section 409A. Awards under the Plan are intended either to be exempt from the
rules of Section 409A of the Code or to satisfy those rules, and the Plan and such Awards shall be
construed accordingly. Granted Awards may be modified at any time, in the Administrator’s
discretion, so as to increase the likelihood of exemption from or compliance with the rules of
Section 409A of the Code, so long as such modification does not result in a reduction in value to
the applicable Participant (unless the Participant consents in writing to such modification);
provided that, to the extent the applicable Participant declines to provide such consent and the
Administrator is otherwise unable to modify an award because of such a reduction in value, the
Participant shall be solely responsible for any resulting tax liability and the Company shall
withhold as required by law.

          (10) Certain Requirements of Corporate Law. Awards shall be granted and administered
consistent with the requirements of applicable Delaware law relating to the issuance of Stock and
the consideration to be received therefor, and with the applicable requirements of Delaware, in
each case as determined by the Administrator.

     (b) Awards Requiring Exercise

          (1) Time And Manner Of Exercise. Unless the Administrator expressly provides
otherwise, an Award requiring exercise by the holder will not be deemed to have been exercised
until the Administrator receives a notice of exercise (in form reasonably acceptable to

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the Administrator) signed by the appropriate Person and accompanied by any payment required
under the Award. If the Award is exercised by any Person other than the Participant, the
Administrator may require satisfactory evidence that the Person exercising the Award has the right
to do so.

          (2) Exercise Price. The Administrator will determine the exercise price, if any, of
each Award to be granted that requires exercise. Unless the Administrator determines otherwise, and
in all events in the case of a Stock Option or a SAR (except as otherwise permitted pursuant to
Section 7(b)(1) hereof), the exercise price of an Award requiring exercise will not be less than
the Fair Market Value of the Stock subject to the Award, determined as of the date of grant, and in
the case of an ISO granted to a ten-percent shareholder within the meaning of Section 422(b)(6) of
the Code, the exercise price will not be less than 110% of the Fair Market Value of the Stock
subject to the Award, determined as of the date of grant. Except as otherwise permitted under
Section 7, no such Award, once granted, may be repriced other than in accordance with the
applicable stockholder approval requirements of the stock exchanges or other trading systems, if
any, on which the Stock is listed or entered for trading. Fair Market Value shall be determined by
the Administrator consistent with the applicable requirements of Section 422 of the Code and
Section 409A of the Code.

          (3) Payment Of Exercise Price. Except as otherwise provided in an Award Agreement,
where the exercise of an Award is to be accompanied by payment, the Administrator may determine the
required or permitted forms of payment, subject to the following: (a) all payments will be by cash
or check acceptable to the Administrator, or (b) if so permitted by the Administrator, (i) through
the delivery of shares of Stock that have a Fair Market Value equal to the exercise price, except
where payment by delivery of shares would adversely affect the Company’s results of operations
under Generally Accepted Accounting Principles or where payment by delivery of shares outstanding
for less than six months would require application of securities laws relating to profit realized
on such shares, (ii) at such time, if any, as the Stock is publicly traded, through a
broker-assisted exercise program acceptable to the Administrator, (iii) by other means acceptable
to the Administrator, or (iv) by any combination of the foregoing permissible forms of payment. The
delivery of shares in payment of the exercise price under clause (b)(i) above may be accomplished
either by actual delivery or by constructive delivery through attestation of ownership, subject to
such rules as the Administrator may prescribe.

          (4) ISOs. No ISO may be granted under the Plan after the date that is the tenth
anniversary of the date the Plan is approved by the Company’s stockholders, but ISOs previously
granted may extend beyond that date.

     (c) Awards Not Requiring Exercise.

     Awards of Restricted Stock and Unrestricted Stock, whether delivered outright or under Awards
of Stock Units or other Awards that do not require exercise, may be made in exchange for such
lawful consideration, including services, as the Administrator determines.

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7. EFFECT OF CERTAIN TRANSACTIONS

     (a) Except as otherwise provided in an Award Agreement:

          (1) Assumption or Substitution. In the event of a Corporate Transaction in which
there is an acquiring or surviving entity, the Administrator may provide for the continuation or
assumption of some or all outstanding Awards, or for the grant of new awards in substitution
therefor, by the acquiror or survivor or any entity controlling, controlled by or under common
control with the acquiror or survivor, in each case on such terms and subject to such conditions
(including vesting or other restrictions) as the Administrator determines are appropriate. The
continuation or assumption of such Awards, to the extent applicable, shall be done on terms and
conditions consistent with Section 409A of the Code.

          (2) Acceleration or Cash-Out of Certain Awards. In the event of a Corporate
Transaction (whether or not there is an acquiring or surviving entity) in which there is no
continuation, assumption or substitution as to some or all outstanding Awards, the Administrator
may provide (unless the Administrator determines otherwise, on terms and conditions consistent with
Section 409A of the Code) for (i) treating as satisfied any vesting condition on any such Award,
(ii) the accelerated delivery of shares of Stock issuable under each such Award consisting of
Restricted Stock Units, in each case on a basis that gives the holder of the Award a reasonable
opportunity, as determined by the Administrator, following exercise of the Award or the issuance of
the shares, as the case may be, to participate as a stockholder in the Corporate Transaction or
(iii) if the Corporate Transaction is one in which holders of Stock will receive upon consummation
a payment (whether cash, non-cash or a combination of the foregoing), the Administrator may provide
for payment (a “cash-out”), with respect to some or all Awards, equal in the case of each affected
Award to the excess, if any, of (A) the Fair Market Value of one Share times the number of Shares
subject to the Award, over (B) the aggregate exercise price, if any, under the Award, in each case
on such payment terms (which need not be the same as the terms of payment to holders of Stock) and
other terms, and subject to such conditions, as the Administrator determines.

          (3) Termination of Awards. Except as otherwise provided in an Award Agreement, each
Award (unless continued, substituted, or assumed pursuant to the Section 7(a)(1)), will terminate
upon consummation of the Corporate Transaction, provided that Restricted Stock Units accelerated
pursuant to clause (ii) of Section 7(a)(2) shall be treated in the same manner as other shares of
Stock (subject to Section 7(a)(4)).

          (4) Additional Limitations. Any Share delivered pursuant to Section 7(a)(2) above
with respect to an Award may, in the discretion of the Administrator, be subject to such
restrictions, if any, as the Administrator deems appropriate to reflect any performance or other
vesting conditions to which the Award was subject prior to the Corporation Transaction and that did
not lapse in connection with the Corporate Transaction. In the case of Restricted Stock, the
Administrator may require that any amounts delivered, exchanged or otherwise paid in respect of
Stock in connection with the Corporate Transaction be placed in escrow or otherwise made subject to
such restrictions as the Administrator deems appropriate to carry out the intent of the Plan.

     (b) Changes In, Distributions With Respect To And Redemptions Of The Stock

          (1) Basic Adjustment Provisions. In the event of any stock dividend or other similar
distribution of stock or other securities of the Company, stock split or combination of

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shares (including a reverse stock split), recapitalization, conversion, reorganization,
consolidation, split-up, spin-off, combination, merger, exchange of stock, redemption or repurchase
of all or part of the shares of any class of stock or any change in the capital structure of the
Company or an Affiliate or other transaction or event, the Administrator shall, as appropriate in
order to prevent enlargement or dilution of benefits intended to be made available under the Plan,
make proportionate adjustments to the maximum number of Shares that may be delivered under the Plan
under Section 4(a) and to the maximum share limits described in Section 4(c) and shall also make
appropriate, proportionate adjustments to the number and kind of shares of stock or securities
subject to Awards then outstanding or subsequently granted, any exercise prices relating to Awards
and any other provision of Awards affected by such change. Unless the Administrator determines
otherwise, any adjustments hereunder shall be done on terms and conditions consistent with Section
409A of the Code.

          (2) Certain Other Adjustments. The Administrator may also make adjustments of the
type described in paragraph (b)(1) above to take into account distributions to stockholders or any
other event, if the Administrator determines that adjustments are appropriate to avoid distortion
in the operation of the Plan and to preserve the value of Awards made hereunder, having due regard
for the qualification of ISOs under Section 422 of the Code, the requirements of Section 409A of
the Code, and for the performance-based compensation rules of Section 162(m) of the Code, where
applicable.

          (3) Continuing Application of Plan Terms. References in the Plan to Shares will be
construed to include any stock or securities resulting from an adjustment pursuant to this Section
7.

8. LEGAL CONDITIONS ON DELIVERY OF STOCK

     The Company shall use best efforts to ensure, prior to delivering Shares pursuant to the Plan
or removing any restriction from Shares previously delivered under the Plan, that (a) all legal
matters in connection with the issuance and delivery of such shares have been addressed and
resolved, and (b) if the outstanding Stock is at the time of delivery listed on any stock exchange
or national market system, the shares to be delivered have been listed or authorized to be listed
on such exchange or system upon official notice of issuance. Neither the Company nor any Affiliate
will be obligated to deliver any Shares pursuant to the Plan or to remove any restriction from
Shares previously delivered under the Plan until the conditions set forth in the preceding sentence
have been satisfied and all other conditions of the Award have been satisfied or waived. If the
sale of Stock has not been registered under the Securities Act of 1933, as amended, the Company may
require, as a condition to exercise of the Award, such representations or agreements as counsel for
the Company may consider reasonably appropriate to avoid violation of such Act. The Company may
require that certificates evidencing Stock issued under the Plan bear an appropriate legend
reflecting any restriction on transfer applicable to such Stock, and the Company may hold the
certificates pending lapse of the applicable restrictions.

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Adopted July 1, 2008

9. AMENDMENT AND TERMINATION

     The Administrator may at any time or times amend the Plan or any outstanding Award for any
purpose which may at the time be permitted by law, and may at any time terminate the Plan as to any
future grants of Awards; provided , that except as otherwise expressly provided in the Plan, the
Administrator may not, without the Participant’s consent, alter the terms of an Award so as to
affect adversely the Participant’s rights under the Award, unless the Administrator expressly
reserved the right to do so at the time of the Award. Unless otherwise provided in the Award, the
Administrator expressly reserves the right to amend or alter the terms of any Award if such Award
or a portion thereof would be reasonably likely to be treated as a “liability award” under guidance
issued or provided by the Financial Accounting Standards Board (FASB). Any amendments to the Plan
shall be conditioned upon stockholder approval only to the extent, if any, such approval is
required by applicable law (including the Code and applicable stock exchange requirements), as
determined by the Administrator.

10. OTHER COMPENSATION ARRANGEMENTS

     The existence of the Plan or the grant of any Award will not in any way affect the right of
the Company or an Affiliate to Award a person bonuses or other compensation in addition to Awards
under the Plan.

11. WAIVER OF JURY TRIAL

     (a) Waiver of Jury Trial. By accepting an Award under the Plan, each Participant
waives any right to a trial by jury in any action, proceeding or counterclaim concerning any rights
under the Plan and any Award, or under any amendment, waiver, consent, instrument, document or
other agreement delivered or which in the future may be delivered in connection therewith, and
agrees that any such action, proceedings or counterclaim shall be tried before a court and not
before a jury. By accepting an Award under the Plan, each Participant certifies that no officer,
representative or attorney of the Company or any Affiliate has represented, expressly or otherwise,
that the Company would not, in the event of any action, proceeding or counterclaim, seek to enforce
the foregoing waivers.

     (b) Arbitration. In the event the waiver in Section 11(a) is held to be invalid or
unenforceable, if requested by the Company, the parties shall attempt in good faith to resolve any
controversy or claim arising out of or relating to this Plan or any Award hereunder promptly by
negotiations between themselves or their representatives who have authority to settle the
controversy. If the matter has not been resolved within sixty (60) days of the initiation of such
procedure, the Company may require that the parties submit the controversy to arbitration by one
arbitrator mutually agreed upon by the Parties, and if no agreement can be reached within 30 days
after names of potential arbitrators have been proposed by the American Arbitration Association
(the “ AAA “), then by one arbitrator having reasonable experience in corporate incentive
plans of the type provided for in this Plan and who is chosen by the AAA. The arbitration shall be
governed by the Federal Arbitration Act, 9 U.S.C. Section 1, et seq., and judgment upon the award
rendered by the arbitrator may be entered in any court having jurisdiction thereof. The place of
arbitration shall be Delaware or any other location mutually agreed to between the parties. The
arbitrator shall apply the law as established by decisions of the Delaware federal and/or state
courts in deciding the merits of claims and defenses under federal law or any state or federal
anti-discrimination law. The arbitrator is required to state, in writing, the reasoning on which
the award rests. Notwithstanding the foregoing, this paragraph

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shall not preclude either party from pursuing a court action for the sole purpose of obtaining
a temporary restraining order or a preliminary injunction in circumstances in which such relief is
appropriate.

12. ESTABLISHMENT OF SUB-PLANS

     The Board may from time to time establish one or more sub-plans under the Plan for purposes of
satisfying applicable blue sky, securities or tax laws of various jurisdictions. The Board shall
establish such sub-plans by adopting supplements to the Plan setting forth (i) such limitations on
the Administrator’s discretion under the Plan as the Board deems necessary or desirable and (ii)
such additional terms and conditions not otherwise inconsistent with the Plan as the Board shall
deem necessary or desirable. All supplements adopted by the Board shall be deemed to be part of the
Plan, but each supplement shall apply only to Participants within the affected jurisdiction and the
Company shall not be required to provide copies of any supplement to Participants in any
jurisdiction that is not affected.

13. GOVERNING LAW

     Except as otherwise provided by the express terms of an Award Agreement, the provisions of the
Plan and of Awards under the Plan shall be governed by and interpreted in accordance with the laws
of the State of Delaware.

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Adopted July 1, 2008

EXHIBIT A

Definitions of Terms

     Unless otherwise defined in an Award Agreement, the following terms, when used in the Plan,
will have the meanings and be subject to the provisions set forth below:

     “Administrator” : The Board or, if one or more has been appointed, the Committee. The
Administrator may delegate ministerial tasks to such Persons as it deems appropriate.

     “Affiliate” : Any corporation or other entity in a chain of corporations or other entities in
which each corporation or other entity has a controlling interest in another corporation or other
entity in the chain, beginning with the Company and ending with such corporation or other entity.
For purposes of the preceding sentence, except as the Administrator may otherwise determine subject
to the requirements of Treas. Reg. §1.409A-1(b)(5)(iii)(E)(1), the term “controlling interest” has
the same meaning as provided in Treas. Reg. §1.414(c)-2(b)(2)(i), provided that the words “at least
50 percent” are used instead of the words “at least 80 percent” each place such words appear in
Treas. Reg. §1.414(c)-2(b)(2)(i). The Company may at any time by amendment provide that different
ownership thresholds (consistent with Section 409A of the Code) apply but any such change shall not
be effective for twelve (12) months. In addition, any Affiliate must also meet the requirements of
subsection (c) under Rule 701.

     “Award” : Any or a combination of the following:

	 	(i)	 	SARs;
	 
	 	(ii)	 	Stock Options;
	 
	 	(iii)	 	Restricted Stock;
	 
	 	(iv)	 	Unrestricted Stock;
	 
	 	(v)	 	Stock Units, including Restricted Stock Units;
	 
	 	(vi)	 	Awards (other than Awards described in (i) through (iv) above)
that are convertible into or exchangeable for Stock on such
terms and conditions as the Administrator determines;
	 
	 	(vii)	 	Performance Awards; and/or
	 
	 	(viii)	 	Current or deferred grants of cash (which the Company may make
payable by any of its direct or indirect subsidiaries) or
loans, made in connection with other Awards.

     “Award Agreement” : A written agreement between the Company and the Participant evidencing the
Award.

     “Board” : The Board of Directors of CC Media Holdings, Inc.

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     “Cause”: In the case of any Participant, unless otherwise set forth in a Participant’s Award
Agreement or employment agreement, a termination by the Company or an Affiliate of the
Participant’s Employment or a termination by the Participant of the Participant’s Employment, in
either case following the occurrence of any of the following events: (i) the Participant’s willful
and continued failure to perform his or her material duties with respect to the Company or an
Affiliate which, if curable, continues beyond ten business days after a written demand for
substantial performance is delivered to the Participant by the Company; or (ii) the willful or
intentional engaging by the Participant in material misconduct that causes material and
demonstrable injury, monetarily or otherwise, to the Company or an Affiliate or the Investors and
any of their respective affiliates; or (iii) Participant’s conviction of, or a plea of nolo
contendere to, a crime constituting (A) a felony under the laws of the United States or any state
thereof; or (B) a misdemeanor involving moral turpitude that causes material and demonstrable
injury, monetarily or otherwise to the Company or an Affiliate or the Investors and any of their
respective affiliates; (iv) the Participant’s committing or engaging in any act of fraud,
embezzlement, theft or other act of dishonesty against the Company or its subsidiaries that causes
material and demonstrable injury, monetarily or otherwise, to the Company or an Affiliate or the
Investors and any of their respective affiliates; or (v) the Participant’s breach of his or her
noncompetition or nonsolicitation obligations that causes material and demonstrable injury,
monetarily or otherwise, to the Company or an Affiliate or the Investors and any of their
respective affiliates.

     “Code”: The U.S. Internal Revenue Code of 1986 as from time to time amended and in effect, or
any successor statute as from time to time in effect. For the avoidance of doubt, any reference to
any section of the Code includes reference to any regulations (including proposed or temporary
regulations) promulgated under that section and any IRS guidance thereunder.

     “Committee”: One or more committees of the Board, which, for purposes of meeting certain
requirements of Section 162(m) of Code and any regulations promulgated thereunder (including Treas.
Regs. Section 1.162-27(e)(3)), may be deemed to be any subcommittee of the Committee to which the
Committee has delegated its duties and authority under this Plan consisting solely of at least two
“outside directors,” as defined under Section 162(m) of the Code and the regulations promulgated
thereunder.

     “Company”: CC Media Holdings, Inc., a Delaware corporation.

     “Corporate Transaction”: Any of the following: (i) Change of Control (as defined in any Award
Agreement); (ii) a consolidation, merger, or similar transaction or series of transactions with or
into a Person (or group of Persons acting in concert) that is not an affiliate of any member of the
Investors, or the sale of all or substantially all of the assets of the Company to such a Person
(or such a group of Persons acting in concert); or (iii) a sale by the Company or an Affiliate or
the Investors and any of their respective affiliates of the capital stock of the Company that
results in more than 50% of the common stock of the Company (or any resulting company after a
merger) being held by a Person (or group of Persons acting in concert) that does not include any
member of the Investors or any of their respective affiliates, provided , that, in each case, to
the extent any amount constituting “nonqualified deferred compensation” subject to Section 409A of
the Code would become payable under an Award by reason of a Corporate Transaction, it shall become
payable only if the event or circumstances constituting the

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Corporate Transaction would also constitute a change in the ownership or effective control of the
Company, or a change in the ownership of a substantial portion of the Company’s assets, within the
meaning of subsection (a)(2)(A)(v) of Section 409A of the Code.

     “Employee”: Any person who is employed by the Company or an Affiliate.

     “Employment”: A Participant’s employment or other service relationship with the Company and
its Affiliates. Unless the Administrator provides otherwise: A change in the capacity in which a
Participant is employed by or renders services to the Company and/or its Affiliates, whether as an
Employee, director, consultant or advisor, or a change in the entity by which the Participant is
employed or to which the Participant rendered services, will not be deemed a termination of
Employment so long as the Participant continues providing services in a capacity and to an entity
described in Section 5. If a Participant’s relationship is with an Affiliate and that entity ceases
to be an Affiliate, the Participant will be deemed to cease Employment when the entity ceases to be
an Affiliate unless the Participant transfers Employment to the Company or its remaining
Affiliates.

     “Fair Market Value”: The fair market value of the Stock on any given date, as determined in
good faith by the Board which, (a) if the Stock is readily tradable on an established securities
market within the meaning of Section 409A of the Code, shall be determined as provided thereunder
and, (b) in the event that the Stock is not readily tradable on an established securities market
within the meaning of Section 409A of the Code, shall be based on a third party appraisal that has
been completed within at least twelve months prior to such determination date; provided , that (i)
if, for any Participant, since such appraisal, events have occurred that would reasonably be
expected to cause the fair market value determination to fail to satisfy the safe harbor
methodology for determining such value under Section 409A of the Code, or (ii) in the event of a
valuation performed upon the termination of a Participant, if the Chief Executive Officer or
President of the Company is the terminated Participant and the Participant objects to the
determination of such fair market value by the Board, then in any such event the determination of
what constitutes “fair market value” with respect to the Stock for which the Board’s determination
is being disputed will be determined by a mutually acceptable expert, whose determination will be
binding on the parties, the costs of which shall be borne by the Company.

     “Investors”: “Investors” as that term is defined in the Stockholders Agreement.

     “ISO”: A Stock Option intended to be an “incentive stock option” within the meaning of Section
422 of the Code. Each option granted pursuant to the Plan will be treated as providing by its terms
that it is to be a non-incentive stock option unless, as of the date of grant, it is expressly
designated as an ISO.

     “Merger”: Transactions completed by the Agreement and Plan of Merger by and among BT Triple
Crown Merger Co., Inc., B Triple Crown Finco, LLC, T Triple Crown Finco, LLC, Clear Channel
Communications, Inc., and the Company (formerly known as BT Triple Crown Capital Holdings, Inc.)
dated as of November 16, 2006 and amended on April 18, 2007 and May 17, 2007 (as may be further
amended from time to time).

-12-

 

     “Participant”: A person who is granted an Award under the Plan.

     “Person”: Any natural person or individual, partnership, corporation, company, association,
trust, joint venture, limited liability company, unincorporated organization, entity or division,
or any government, governmental department or agency or political subdivision thereof.

     “Performance Award” : An Award subject to Performance Criteria. The Committee in its
discretion may grant Performance Awards that are intended to qualify for the performance-based
compensation exception under Section 162(m) of the Code and Performance Awards that are not
intended so to qualify.

     “Performance Criteria” : Specified criteria, other than the mere continuation of Employment or
the mere passage of time, the satisfaction of which is a condition for the grant, exercisability,
vesting or full enjoyment of an Award. For purposes of Awards that are intended to qualify for the
performance-based compensation exception under Section 162(m) of the Code, a Performance Criterion
will mean an objectively determinable measure of performance relating to any or any combination of
the following (measured either absolutely or by reference to an index or indices and determined
either on a consolidated basis or, as the context permits, on a divisional, subsidiary, line of
business, project or geographical basis or in combinations thereof): sales; revenues; assets;
expenses; earnings before or after deduction for all or any portion of interest, taxes,
depreciation, or amortization, whether or not on a continuing operations or an aggregate or per
share basis; return on equity, investment, capital or assets; one or more operating ratios;
borrowing levels, leverage ratios or credit rating; market share; capital expenditures; cash flow;
stock price; stockholder return; sales of particular products or services; customer acquisition or
retention; acquisitions and divestitures (in whole or in part); joint ventures and strategic
alliances; spin-offs, split-ups and the like; reorganizations; or recapitalizations,
restructurings, financings (issuance of debt or equity) or refinancings. A Performance Criterion
and any targets with respect thereto determined by the Administrator need not be based upon an
increase, a positive or improved result or avoidance of loss. To the extent consistent with the
requirements for satisfying the performance-based compensation exception under Section 162(m), the
Administrator may provide in the case of any Award intended to qualify for such exception that one
or more of the Performance Criteria applicable to such Award will be adjusted in an objectively
determinable manner to reflect events (for example, but without limitation, acquisitions or
dispositions) occurring during the performance period that affect the applicable Performance
Criterion or Criteria.

     “Plan”: Clear Channel 2008 Executive Incentive Plan as from time to time amended and in
effect.

     ” QPO ”: An underwritten public offering and sale of common stock of the Company for cash
pursuant to an effective registration statement by the Company, any Investor, or any member of the
Sponsor Group.

     “Restricted Stock”: An Award of Stock for so long as the Stock remains subject to restrictions
under this Plan or such Award requiring that it be redelivered or offered for sale to the Company
if specified conditions are not satisfied.

-13-

 

     “Restricted Stock Unit”: A Stock Unit that is, or as to which the delivery of Stock or cash in
lieu of Stock is, subject to the satisfaction of specified performance or other vesting conditions.

     “SAR”: A right entitling the holder upon exercise to receive an amount (payable in cash or
shares of Stock of equivalent value, as specified in the Award except as otherwise determined by
the Administrator) equal to the excess of the fair market value of the Shares subject to the right
over a specified amount that is not less than the fair market value of such Shares at the date of
grant.

     “Share”: a share of Stock.

     “Sponsor Group”: “Sponsor Group” as that term is defined in the Stockholders Agreement.

     “Stock”: Class A Common Stock of the Company, par value $.001 per share, which shall be the
same class of common stock to be held by public shareholders of the Company.

     “Stock Option”: An option entitling the recipient to acquire Shares upon payment of the
applicable exercise price.

     ” Stock Unit ” : An unfunded and unsecured promise, denominated in Shares, to deliver Stock or
cash measured by the value of the Stock in the future.

     “Stockholders Agreement”: Stockholders Agreement, dated as of the date of the consummation of
the Merger, by and among the Company, BT Triple Crown Merger Co., Inc. and other stockholders of CC
Media Holdings Inc. who from time to time may become a party thereto.

     “Unrestricted Stock”: An Award of Stock not subject to any restrictions under the Plan.

-14-

 

EXHIBIT B

Form of Option Agreement

-15-

 

SENIOR EXECUTIVE OPTION AGREEMENT

Optionee:

     This Option and any securities issued upon exercise of this Option are subject to
restrictions on voting and transfer and requirements of sale and other provisions as set forth in
the Stockholders Agreement, dated as of July 29, 2008, among CC Media Holdings Inc. BT Triple Crown
Merger Co., Inc. (“MergerSub”), Clear Channel Capital IV, LLC, Clear Channel Capital V,
L.P., Mark P. Mays, L. Lowry Mays, Randall T. Mays, and other stockholders of CC Media Holdings,
Inc. who from time to time may become a party thereto, as amended from time to time (the
“Stockholders Agreement”), and the Side Letter Agreement, dated as of July 29, 2008, among CC Media
Holdings, Inc., MergerSub, Clear Channel Capital IV, LLC, Clear Channel Capital V, L.P., Mark P.
Mays, L. Lowry Mays and Randall T. Mays (“Side Letter Agreement,”  together with the Stockholders
Agreement, the “Equity Agreements”). This Option and any securities delivered hereunder
constitute Executive Shares as defined in the Stockholders Agreement.

CC MEDIA HOLDINGS, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

     This stock option (the “Agreement”) is granted by CC Media Holdings, Inc., a Delaware
corporation (the “Company”), to the Optionee, pursuant to the Company’s 2008 Executive Incentive
Plan (as amended from time to time, the “Plan”). For the purpose of this Agreement, the “Grant
Date” shall mean July 30, 2008.

     1. Grant of Option. The Agreement evidences the grant by the Company on the Grant Date
to the Optionee of an option to purchase, in whole or in part, on the terms provided herein and in
the Plan, shares of Class A Common Stock of the Company, par value $.001 per share (the
“Shares”), as set forth below:

     (a)                  Shares at $36.00 per Share (the “Tranche 1 Options”);

     (b)                  Shares at $36.00 per Share (the “Tranche 2 Options”); and

     (c)                  Shares at $36.00 per Share (the “Tranche 3 Options”).

     The Option evidenced by this Agreement is not intended to qualify as an incentive stock option
under Section 422 of the Internal Revenue Code (the “Code”).

     2. Vesting.

     (a) During Employment. During the Optionee’s Employment, this Option shall vest as
follows:

     (i) Tranche 1: The Tranche 1 Options will vest and become exercisable (A)
with respect to 25% of the Shares subject to the Tranche 1 Options on and after the
third anniversary of the Grant Date; (B) with respect to an additional 25% of the
Shares subject to the Tranche 1 Options on and after the

1

 

fourth anniversary of the Grant Date; and (C) with respect to the remaining 50% of
the Shares subject to the Tranche 1 Options on and after the fifth anniversary of
the Grant Date.

     (ii) Tranche 2: The Tranche 2 Options shall only vest and become
exercisable upon a 2.0x Return to Investor.

     (iii) Tranche 3: The Tranche 3 Options shall only vest and become exercisable
upon a 2.5x Return to Investor.

     (b)
Termination of Employment Upon Death or Disability or Termination
Without Cause or for Good Reason. Notwithstanding any other provision of this Section
2, automatically and immediately upon the cessation of Employment, all outstanding and
unvested Tranche 1, 2 and 3 Options shall cease to be exercisable and will terminate,
except that:

     (i) upon a termination due to the death or Disability of the Optionee, any
unvested Tranche 1 Options that would have vested as of the next succeeding
anniversary of the Closing Date following such death or Disability will vest as if
the Optionee’s Employment had continued through such date;

     (ii) upon a termination due to the death or Disability of the Optionee, any
unvested Tranche 2 and Tranche 3 Options that would have vested as of the next
succeeding anniversary of the Closing Date following such death or Disability will
vest as if the Optionee’s Employment had continued through such date; and

     (iii) upon a termination by the Company or any of its Affiliates or
subsidiaries without Cause or resignation by the Optionee for Good Reason, all
unvested Tranche 1 Options, Tranche 2 Options and Tranche 3 Options will vest.

     (c) Change of Control. Notwithstanding any other provision of this Section 2,
in the event of a Change of Control, 100% of the Shares subject to any then outstanding and
unvested Tranche 1 Options shall become fully vested.

Notwithstanding the foregoing provisions of this Section 2, (but subject to any other provision of
this Agreement or any other written agreement between the Company and the Optionee with respect to
vesting and termination of Shares granted under the Plan), no Options shall vest or shall become
eligible to vest on any date specified above unless the Optionee is then, and since the Grant Date
has continuously been, Employed by the Company, its Affiliates, or its subsidiaries.

     3. Exercise of Option. Each election to exercise this Option shall be subject to the
terms and conditions of the Plan and shall be in writing, signed by the Optionee or by his or her
executor or administrator or by the Person or Persons to whom this Option is transferred by will or
the applicable laws of descent and distribution (the “Legal Representative”), and made pursuant to
and in accordance with the terms and conditions set forth in the Plan. In addition to the methods
of payment otherwise permitted by the Plan, the Administrator shall, at the election

2

 

of the Optionee, hold back Shares from the Option having a Fair Market Value equal to the
exercise price in payment of the Option exercise price. The latest date on which this Option may
be exercised (the “Final Exercise Date”) is the date which is the tenth anniversary of the Grant
Date, subject to earlier termination in accordance with the terms and provisions of the Plan and
this Agreement. Notwithstanding the foregoing, and subject to the provisions of Section 2(b)
above, the following rules will apply if the Optionee’s Employment terminates: automatically and
immediately upon the termination of Employment, this Option will cease to be exercisable and will
terminate, except that:

     (a) any portion of this Option held by the Optionee or the Optionee’s permitted
transferees, if any, immediately prior to the termination of the Optionee’s Employment by
reason of a termination by the Company without Cause, the Optionee’s Retirement, or a
resignation by the Optionee for Good Reason, to the extent then vested and exercisable,
will remain exercisable for the shorter of (i) a period of 180 days or (ii) the period
ending on the Final Exercise Date, and will thereupon terminate;

     (b) any portion of this Option held by the Optionee or the Optionee’s permitted
transferees, if any, immediately prior to a termination of the Optionee’s Employment by
reason of a resignation by the Optionee without Good Reason, to the extent then vested and
exercisable, will remain exercisable for the shorter of (i) a period of 90 days or (ii)
the period ending on the Final Exercise Date, and will thereupon terminate;

     (c) any portion of this Option held by the Optionee or the Optionee’s permitted
transferees, if any, immediately prior to the termination of the Optionee’s Employment by
reason of death or Disability, to the extent then vested and exercisable, will remain
exercisable for the shorter of (i) the one year period ending with the first anniversary
of the Optionee’s death or Disability, as the case may be, or (ii) the period ending on
the Final Exercise Date, and will thereupon terminate; and

     (d) any portion of this Option held by the Optionee or the Optionee’s permitted
transferees, if any, immediately prior to the termination of the Optionee’s Employment
will immediately terminate upon such termination if such termination of Employment has
resulted in connection with an act or failure to act constituting Cause.

     4. Corporate Transaction. In the event of a Corporate Transaction in which holders of
Stock will receive upon consummation a payment (whether cash, non-cash or a combination of the
foregoing), the Optionee shall be entitled to receive, in consideration for any portion of the
Award then outstanding, such payment (a “cash-out”), equal to the excess, if any, of (A) the price
paid in such Corporate Transaction for one Share times the number of Shares subject to the Award,
over (B) the aggregate exercise price, if any, under the Award, in each case on such payment terms
(which shall be the same as the terms of payment to holders of Stock) and other terms, and subject
to such conditions, as are consistent with those applied to the consideration received by holders
of Stock in the transaction, as the Administrator reasonably and in good faith determines.

3

 

     5. Other Agreements. Optionee acknowledges and agrees that the shares received upon
exercise of this Option shall be subject to the Equity Agreements and the transfer and other
restrictions, rights, and obligations set forth therein.

     6. Withholding. No Shares will be transferred pursuant to the exercise of this Option
unless and until the person exercising this Option shall have remitted to the Company an amount
sufficient to satisfy any federal, state, or local withholding tax requirements, or shall have made
other arrangements satisfactory to the Company with respect to such taxes. The Administrator shall,
at the election of the Optionee, hold back Shares from the Option or permit an Optionee to tender
previously owned shares of Stock in satisfaction of tax withholding requirements (but not in excess
of the applicable minimum statutory withholding rate).

     7. Nontransferability of Option. This Option is not transferable by the Optionee other
than by will or the applicable laws of descent and distribution, and is exercisable during the
Optionee’s lifetime only by the Optionee.

     8. Effect on Employment. Neither the grant of this Option, nor the issuance of Shares
upon exercise of this Option, shall give the Optionee any right to be retained in the employ of the
Company or its Affiliates, affect the right of the Company or its Affiliates to discharge or
discipline such Optionee at any time, or affect any right of such Optionee to terminate his or her
Employment at any time.

     9. Provisions of the Plan. This Option is subject in its entirety to the provisions of
the Plan, which are incorporated herein by reference. A copy of the Plan as in effect on the date
of the grant of this Option has been furnished to the Optionee. By exercising all or any part of
this Option, the Optionee agrees to be bound by the terms of the Plan and this Option. In the event
of any conflict between the terms of this Option and the Plan, the terms of this Option shall
control. Notwithstanding anything set forth in the Plan to the contrary, however, in the event of
the payment of any extraordinary cash dividend on Shares (a “Special Dividend Payment”), the
Optionee shall be entitled to receive (i) a payment in an amount equal to the cash dividends the
Optionee would have received (a “Dividend Equivalent Payment”), if the Optionee held as a
stockholder the same number of Shares, as are, as of the date of such Special Dividend Payment,
subject to any vested Options hereunder, which payment shall be made at the same time as such
Special Dividend Payments are made; (ii) with respect to any Shares subject to any unvested Options
on the date of such Special Dividend Payment, a Dividend Equivalent Payment on such Shares, to be
paid at such time(s) as such Optionee becomes vested in such Options. For the avoidance of doubt,
in the event of any such payments, no reduction in exercise price or similar adjustment shall be
made under Section 7(b)(1) or (2) of the Plan. Notwithstanding Section 9 of the Plan, the
Administrator shall not, in order to avoid liability accounting as provided therein, revoke or
reduce the amount of any Award, but may impose reasonable terms and conditions on the exercise of
put rights, call rights and other transactions as may be reasonably necessary to avoid the
treatment of the grant as a liability award under FASB. Notwithstanding Section 9 of the Plan, the
Administrator shall not, without the Optionee’s consent, alter the terms of the Plan or this
Agreement so as to adversely affect the Optionee’s rights under this Agreement.

     10. Definitions. The initially capitalized terms Optionee shall have the meaning set
forth on the first page of this Agreement; initially capitalized terms not otherwise defined herein

4

 

shall have the meaning provided in the Plan, and to the extent not otherwise defined in the
Plan, then as defined in the Equity Agreements. The following terms shall have the meanings set
forth below:

     “Change of Control” has the meaning set forth in the Stockholders Agreement.

     “Cause” has the meaning set forth in the Employment Agreement.

     “Disability” has the meaning set forth in the Employment Agreement.

     “Employment” for purposes of this Agreement only, means employment on a continuous and
substantially full-time basis (exclusive only of vacation and other approved absences) and
excludes any period of employment during which services are performed on an intermittent or
mutually agreed basis in a consulting capacity.

     “Employment Agreement” shall mean the employment agreement entered into between the Company, BT Triple Crown Merger Co., Inc., and the Optionee dated as of July 28, 2008.

     “Good Reason” has the meaning set forth in the Employment Agreement.

     “Investor Shares” has the meaning set forth in the Stockholders Agreement and shall include
any stock, securities or other property or interests received by the Investors in respect of
Investor Shares in connection with any stock dividend or other similar distribution, stock split
or combination of shares, recapitalization, conversion, reorganization, consolidation, split-up,
spin-off, combination, repurchase, merger, exchange of stock or other transaction or event that
affects the Company’s capital stock occurring after the date of issuance.

     “Investors” has the meaning set forth in the Stockholders Agreement.

     “Retirement” means an Optionee’s retirement from service with the Company on the date that is
the earlier of (i) after attaining 62 years of age or (ii) after attaining 60 years of age and
completing thirty-six (36) months of service following consummation of the transactions
contemplated by the Merger.

     “Return to Investor” means the return to the Investors, measured in the aggregate on their
cash investment to purchase Investor Shares, taking into account the amount of all cash dividends and cash
distributions to such Investors in respect of their Investor Shares and all cash proceeds to such
Investors from the sale or other disposition of such Investor Shares.

     “Stock” means the Class A Common Stock of the Company, par value $.001 per share.

     11. General. For purposes of this Option and any determinations to be made by the
Administrator or Compensation Committee, as the case may be, hereunder, the determinations
by the Administrator or Compensation Committee, as the case may be, shall be binding upon
the Optionee and any transferee.

5

 

     IN WITNESS WHEREOF, the Company has caused this Option to be executed under its
corporate seal by its duly authorized officer. This Option shall take effect as a sealed instrument.

	 	 	 	 	 
	 	CC MEDIA HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Andrew Levin 	 
	 	 	Title:  	Executive Vice President and Chief
Legal Officer 	 
	 

	 	 	 	 	 
	Dated:	 
	 	 
	Acknowledged and Agreed	 
	 	 
	 	 
	Name:	 
	 	 
	Address of Principal Residence:	 
	 	 
	 	 
	 
	 	 
	 

 

 

EXECUTIVE OPTION AGREEMENT

			
	 
	 	Optionee:                                         

     This Option and any securities issued upon exercise of this Option are subject to
restrictions on transfer and requirements of sale and other provisions as set forth below.

CC MEDIA HOLDINGS, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

     This
stock option (the “Option”) is granted by CC Media Holdings, Inc., a Delaware corporation
(the “Company”),to the Optionee, pursuant to the Company’s 2008 Executive Incentive Plan (as amended
from time to time, the “Plan”). For the purpose of this Executive Option Agreement (the
“Agreement”), the “Grant Date” shall mean July 30, 2008.

     1. Grant
of Option. The Agreement evidences the grant by the Company on the Grant Date
to the Optionee of an option to purchase, in whole or in part, on the terms provided herein and in
the Plan, shares of Class A Common Stock, par value $.001 per share (the “Shares”), as set
forth below:

(a)
           Shares at $36.00 per Share (the “Tranche 1 Options”);

(b)            Shares at $36.00 per Share (the “Tranche 2 Options”); and

(c)            Shares at $36.00 per Share (the “Tranche 3 Options”).”

     The Option evidenced by this Agreement is not intended to qualify as an incentive stock option
under Section 422 of the Code.

     2. Vesting.

     (a)
During Employment. During the Optionee’s Employment, this Option shall vest as
follows:

     (i)
Tranche 1: The Tranche 1 Options will vest and become exercisable with respect to 20%
of the Tranche 1 Options on each of the first, second, third, fourth and fifth anniversaries of the
Grant Date.

     (ii)
Tranche 2: The Tranche 2 Options will become eligible to vest (subject to achieving a
2.0x Return to Investor) with respect to 20% of the Tranche 2 Options on each of the first, second,
third, fourth and fifth anniversaries of the Grant Date. Tranche 2 Options that are eligible to
vest shall only vest and become exercisable upon the achievement of a 2.0x Return to Investor.
Subject to the other terms and provisions of this Agreement and the Plan, Tranche 2 Options not
eligible to vest on the date a 2.0x Return to Investor is achieved, shall thereafter vest and
become exercisable when they become eligible to vest.

1

 

     (iii) Tranche 3: The Tranche 3 Options will become eligible to vest
(subject to achieving a 2.5x Return to Investor) with respect to 20% of the Tranche 3
Options on each of the first, second, third, fourth and fifth anniversaries of the Grant
Date. Tranche 3 Options that are eligible to vest shall only vest and become exercisable
upon the achievement of a 2.5x Return to Investor. Subject to the other terms and
provisions of this Agreement and the Plan, Tranche 3 Options not eligible to vest on the
date a 2.5x Return to Investor is achieved, shall thereafter vest and become exercisable
when they become eligible to vest.

     (b)
Change of Control. Notwithstanding any other provision of this Section 2, in the event of
a Change of Control, 100% of the then outstanding and unvested Tranche 2 and Tranche 3 Options
shall become eligible to vest and shall vest and become exercisable to the extent that the
applicable Return to Investor is achieved upon the Change of Control.

     (c) Termination of Employment.

     (i) Notwithstanding any other provision of this Section 2 and subject to Section
2(c)(ii) below, automatically and immediately upon the cessation of Employment, all
outstanding and unvested Tranche 1, 2 and 3 Options shall terminate.

     (ii) Notwithstanding Section 2(c)(i), in the event the Optionee’s
Employment is terminated by the Company without Cause during the twelve (12) months
following a Change of Control, 100% of the then outstanding and unvested Tranche 1
Options will vest and become exercisable in accordance with Section 3(a) below.

Notwithstanding the foregoing (but subject to any contrary provision of this Agreement or any other
written agreement between the Company and the Optionee with respect to vesting and termination of
Awards granted under the Plan), no Options shall vest or shall become eligible to vest on any date
specified above unless the Optionee is then, and since the Grant Date has continuously been, an
Employee.

     3. Exercise of Option. Each election to exercise this Option shall be subject to
the terms and conditions of the Plan and shall be in writing, signed by the Optionee or by his or
her executor or administrator or by the person or persons to whom this Option is transferred by
will or the applicable laws of descent and distribution (the “Legal Representative”), and
made pursuant to and in accordance with the terms and conditions set forth in the Plan. In addition
to the methods of payment otherwise permitted by the Plan, the Administrator shall, at the election
of the Optionee, hold back Shares from an Option having a Fair Market Value equal to the exercise
price in payment of the Option exercise price. The latest date on which this Option may be
exercised (the “Final Exercise Date”) is the date which is the tenth anniversary of the
Grant Date, subject to earlier termination in accordance with the terms and provisions of the Plan
and this Agreement. Notwithstanding the foregoing, and subject to the provisions of Section 2(b)
above, the following rules will apply if a Optionee’s Employment ceases in all circumstances:

2

 

automatically and immediately upon the cessation of Employment, this Option will cease to be
exercisable and will terminate, except that:

     (a) any portion of this Option held by the Optionee or the Optionee’s Permitted
Transferees, if any, immediately prior to the termination of the Optionee’s Employment by
reason of a termination by the Company without Cause, to the extent then vested and
exercisable, will remain exercisable for the shorter of (i) a period of 90 days or (ii) the
period ending on the Final Exercise Date, and will thereupon terminate; and

     (b) any portion of this Option held by the Optionee or the Optionee’s Permitted
Transferees, if any, immediately prior to the termination of the Optionee’s Employment by
reason of death or Disability, to the extent then vested and exercisable, will remain
exercisable for the shorter of (i) the one year period ending with the first anniversary of
the Optionee’s death or Disability, as the case may be, or (ii) the period ending on the
Final Exercise Date, and will thereupon terminate.

     4. Withholding. No Shares will be transferred pursuant to the exercise of this Option
unless and until the person exercising this Option shall have remitted to the Company an amount
sufficient to satisfy any federal, state, or local withholding tax requirements, or shall have made
other arrangements satisfactory to the Company with respect to such taxes. The Administrator may,
in its sole discretion, hold back Shares otherwise receivable upon exercise of the Option or permit
an Optionee to tender previously owned shares of Stock in satisfaction of tax withholding
requirements (but not in excess of the applicable minimum statutory withholding rate).

     5. Nontransferability
of Option. This Option is not transferable by the Optionee other than by
will or the applicable laws of descent and distribution, and is exercisable during the Optionee’s
lifetime only by the Optionee.

     6. Restrictions on Shares.

     (a) Transferability of Shares. Except as provided in this Section 6, no
Transfer of Shares received upon exercise of the Option (“Received Shares”) by the
Optionee is permitted:

     (i) Permitted Transferees. The Optionee may Transfer any and all
Received Shares to a Permitted Transferee, provided that such Permitted Transferee
shall become a party to and subject to the terms and conditions of this Agreement.
Prior to the initial Transfer of any Received Shares to a given Permitted Transferee
pursuant to this Section 6(a) and as a condition thereto, the Permitted Transferee
shall execute a written agreement in a form provided by the Company under which such
Permitted Transferee shall become subject to all provisions of this Agreement to the
extent applicable to the Received Shares including without limitation Sections 6, 7,
and 10.

     (ii) Public Transfers. After the third anniversary of the closing of a
Qualified Public Offering, the Optionee may Transfer any or all Received Shares

3

 

to
the public pursuant to Rule 144 under the Securities Act of 1933, as amended
(“Rule 144”)

     (iii) Sale Rights on Termination Due to Death or Disability. Upon the
Optionee’s termination of Employment due to death or Disability, the Optionee and his or her
Permitted Transferees will have the right, subject to Sections 6(a)(v) and 6(a)(vi), to sell to the
public pursuant to Rule 144 at any time during the one-year period following the effective date of
such termination all or any portion of the Received Shares, notwithstanding that such a Transfer
might not otherwise then be permitted by Section 6(a)(ii).

     (iv) Release of Received Shares. If prior to the third anniversary of the closing of a
Qualified Public Offering, any Investor makes a Transfer of its Equity Shares to any Person (other
than a Transfer to any other Investor or Sponsor or to any of the respective Affiliates or
Affiliated Funds of any such Investor or Sponsor), then the Optionee will be permitted to Transfer,
pursuant to Rule 144, that portion of the Optionee’s Received Shares that bears the same proportion
to the total number of Shares with respect to which this Option is then vested and exercisable and
Received Shares then owned by the Optionee as the number of Equity Shares that were Transferred by
such Investor bears to the total number of Equity Shares that were owned by all Investors
immediately prior to such Transfer.

     (v) Legal Restrictions; Other Restrictions. The restrictions on Transfer contained in
this Agreement, including those specified in this Section 6, are in addition to any prohibitions
and other restrictions on transfer arising under any applicable laws, rules or regulations, and the
Optionee may not Transfer Received Shares to any other Person unless the Optionee first takes all
reasonable and customary steps, to the reasonable satisfaction of the Company, to ensure that
such Transfer would not violate, or be reasonably expected to restrict or impair the
respective business activities of the Company or any of its subsidiaries under, any applicable
laws, rules or regulations, including applicable securities, antitrust or U.S. federal
communications laws, rules and regulations. The restrictions on Transfer contained in this
Agreement are in addition to any other restrictions on Transfer to which the Optionee may be
subject, including any restrictions on Transfer contained in the Company’s certificate of
incorporation (including restrictions therein relating to federal communications laws), or any
other agreement to which the Optionee is a party or is bound or any applicable lock-up rules and
regulations of any national securities exchange or national securities association.

     (vi)
Impermissible Transfers. Any Transfer of Received Shares not made in compliance
with the terms of this Section 6 shall be null and void ab initio, and the Company shall not in any
way give effect to any such Transfer.

     (vii) Period. Upon the occurrence of a Change of Control, all the Transfer
restrictions of this Section 6 shall terminate.

4

 

     (b) Drag Rights.

     (i) Sale Event Drag Along. If the Company notifies the Optionee in
writing that it has received a valid Drag Along Sale Notice (as defined in the
Stockholders Agreement) pursuant to the Stockholders Agreement and that Capital IV has
informed the Company that it desires to have the Optionee participate in the transaction
that is the subject of the Drag Along Sale Notice, then the Optionee shall be bound and
obligated to Transfer in such transaction the percentage of the aggregate number of Shares
with respect to which this Option is then vested and exercisable and Received Shares then
held by the Optionee that the Company notifies the Optionee is equal to the percentage of
Equity Shares held by the Sponsors and their Affiliates that the Sponsors and Affiliates
are transferring in such transaction, on the same terms and conditions as the Sponsors and
their Affiliates with respect to each Equity Share Transferred. With respect to a given
transaction that is the subject of a Drag Along Notice, the Optionee’s obligations under
this Section 6(b) shall remain in effect until the earlier of (1) the consummation of such
transaction and (2) notification by the Company that such Drag Along Sale Notice has been
withdrawn.

     (ii) Waiver of Appraisal Rights. The Optionee agrees not to demand or
exercise appraisal rights under Section 262 of the Delaware General Corporate Law, as
amended, or otherwise with respect to any transaction subject to this Section 6(b),
whether or not such appraisal rights are otherwise available.

     (iii) Further Assurances. The Optionee shall take or cause to be taken all such
actions as requested by the Company or Capital IV in order to consummate any transaction
subject to this Section 6(b) and any related transactions, including but not limited to
the exercise of vested Options and the execution of agreements and other documents
requested by the Company.

     (iv) Period. The foregoing provisions of this Section 6(b) shall terminate upon the
occurrence of a Change of Control.

     (c) Lock-Up. The Optionee agrees that in connection with a Public Offering, upon the
request of the Company or the managing underwriters(s) of such Public Offering, the Optionee will
not Transfer, make any short sale of, loan, grant any option for the purchase of, pledge, enter
into any swap or other arrangement that transfers any of the economic ownership, or otherwise
encumber or dispose of the Option or any portion thereof or any of the Received Shares for such
period as the Company or such managing underwriter(s), as the case may be, may request, commencing
on the effective date of the registration statement relating to such Public Offering and continuing
for not more than 90 days (or 180 days in the case of any Public Offering up to and including the
Qualified Public Offering), except with the prior written consent of the Company or such managing
underwriter(s), as the case may be. The Optionee also agrees that he or she will sign a “lock up”
or similar arrangement in connection with a Public Offering on terms and conditions that the
Company or the managing underwriter(s) thereof deems necessary or desirable.

5

 

     7. Grant of Proxy. To the extent permitted by law, the Optionee hereby grants to
Capital IV an irrevocable proxy coupled with an interest, with full power of substitution, to vote
such Optionee’s Received Shares as Capital IV sees fit on all matters related to (i) the election
of members of the Board, (ii) any transaction subject to Section 6(b) herein or (iii) any amendment
to the Company’s certificate of incorporation to increase the number of shares of common stock
authorized thereunder. Such proxy shall be valid and remain in effect until the earlier of (1) the
occurrence of a Change of Control and (2) with respect to any particular matter, the latest date
permitted by applicable law.

     8. Status Change. Upon the termination of the Optionee’s Employment, this Option shall
continue or terminate, as and to the extent provided in the Plan and this Agreement.

     9. Effect on Employment. Neither the grant of this Option, nor the issuance of Shares
upon exercise of this Option, shall give the Optionee any right to be retained in the employ of the
Company or its Affiliates, affect the right of the Company or its Affiliates to discharge or
discipline such Optionee at any time, or affect any right of such Optionee to terminate his or her
Employment at any time.

     10. Non-Competition, Non-Solicitation, Non-Disclosure. The Board shall have the right
to cancel, modify, rescind, suspend, withhold or otherwise limit or restrict this Option,
including, without limitation, canceling or rescinding this Option if the Board determines that the
Optionee is not in compliance with any non-competition or non-solicitation or non-disclosure
agreement with the Company and such non-compliance has not been authorized in advance in a specific
written waiver from the Company. In addition, in the event of any such violation of such agreement
(without the advance written consent of the Company) that occurs during the period following
termination of employment covered by any such agreement, the Company may require that (i) the
Optionee sell to the Company Received Shares then held by the Optionee for
a purchase price equal to the aggregate exercise price of the Options and (ii) the Optionee remit
or deliver to the Company (1) the amount of any gain realized upon the sale of any Received Shares,
and (2) any consideration received upon the exchange of any Received Shares (or the extent that
such consideration was not received in the form of cash, the cash
equivalent thereof valued at the
time of the exchange). The Company shall have the right to offset, against any Shares and any cash
amounts due to the Optionee under or by reason of Optionee’s holding this Option, any amounts to
which the Company is entitled as a result of Optionee’s violation of the terms of any
non-competition, non-solicitation or non-disclosure agreement with the Company or Optionee’s breach
of any duty to the Company. Accordingly, Optionee acknowledges that (i) the Company may withhold
delivery of Shares, (ii) the Company may place the proceeds of any sale or other disposition of
Shares in an escrow account of the Company’s choosing pending resolution of any dispute with the
Company, and (iii) the Company has no liability for any attendant market risk caused by any such
delay, withholding, or escrow. The Optionee acknowledges and agrees that the calculation of damages
from a breach of an agreement with the Company or of any duty to the Company would be difficult to
calculate accurately and that the right to offset or other remedy provided for herein is reasonable
and not a penalty. The Optionee further agrees not to challenge the reasonableness of such
provisions even where the Company rescinds, delays, withholds or escrows Shares or proceeds or uses
those Shares or proceeds as a setoff.

6

 

     11. Provisions of the Plan. This Option is subject in its entirety to the
provisions of the Plan, which are incorporated herein by reference. A copy of the Plan as in effect on the
date of the grant of this Option has been furnished to the Optionee. By exercising all or any
part of this Option, the Optionee agrees to be bound by the terms of the Plan and this Agreement. In
the event of any conflict between the terms of the Plan and this Agreement, the terms of this
Agreement shall control.

     12. Definitions. The initially capitalized terms Optionee and Grant Date shall have
the meanings set forth on the first page of this Agreement; initially capitalized terms not
otherwise defined herein shall have the meaning provided in the Plan, and, as used herein,
the following terms shall have the meanings set forth below:

     “Affiliate” means, with respect to any specified Person, any other Person that directly or
indirectly through one or more intermediaries controls, or is controlled by, or is under
common control with, such specified Person. For the purposes of this Agreement, “control”
(including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control
with”), as used with respect to any Person, means the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of such Person, whether
through the ownership of voting securities, by agreement
 or otherwise. For purposes of this
Agreement, none of the Company or any of its subsidiaries will be considered an Affiliate of
any Sponsor or any of their respective Affiliates or Affiliated Funds.

     “Affiliated Fund” means, with respect to any specified Person, (a) an investment fund that
is an Affiliate of such Person or that is advised by the same investment adviser as such
Person or by an Affiliate of such investment adviser or such Person or, with respect to a Person
that is a Sponsor or an Affiliate of a Sponsor, (b) any partnership, limited liability company or
other legal entity controlled (i) jointly by the Sponsors and/or their respective Affiliates or
(ii) individually by a single Sponsor and/or its Affiliates, in each case (i) and (ii) that is formed
to invest directly or indirectly in the Company.

     “Capital IV” means Clear Channel Capital IV, LLC, a Delaware limited liability
company formed and jointly controlled by the Sponsors, and its successors and/or assigns.

     “Capital V” means Clear Channel Capital V, L.P., a Delaware limited partnership formed
and jointly controlled by the Sponsors, and its successors and/or assigns.

     “Change of Control” means (a) any consolidation or merger of the Company with or into
any other corporation or other Person, or any other corporate reorganization or transaction
(including the acquisition of capital stock of the Company), whether or not the Company is a
party thereto, after which the Sponsors and their respective Affiliated Funds and Affiliates
do not directly or indirectly control capital stock representing more than 25% of the economic
interests in and 25% of the voting power of the Company or other surviving entity immediately after such
consolidation, merger, reorganization or transaction; (b) any stock sale or other transaction
or series of related transactions, whether or not the Company is a party thereto, after which in
excess of 50% of the Company’s voting power is owned directly or indirectly by any Person and
its “affiliates” or “associates” (as such terms are defined the Securities Exchange Act of 1934
as amended and the rules thereunder), other than the Sponsors and their respective Affiliated
Funds

7

 

and Affiliates (or a group of Persons that includes such Persons); or (c) a sale of all or
substantially all of the assets of the Company to any Person and the “affiliates” or “associates”
of such Person (or a group of Persons acting in concert), other than the Sponsors and their
respective Affiliated Funds and Affiliates (or a group of Persons that includes such Persons).

     “Disability” (a) has the meaning given to such term in the Optionee’s employment
agreement then in effect, if any, between the Optionee and the Company or any of its
subsidiaries, or (b) if there is no such term in such employment agreement or there is no such
employment agreement then in effect, means the disability of an Optionee during his or her
Employment through any illness, injury, accident or condition of either a physical or
psychological nature as a result of which, in the judgment of the Board, he or she is unable
to perform substantially all of his or her duties and responsibilities, notwithstanding the
provision of any reasonable accommodation, for 6 consecutive months during any period of 12 consecutive
months.

     “Equity Shares” means Shares as such term is used in the Stockholders Agreement.

     “Investors” means Capital IV and Capital V and their “Permitted Transferees,” as
defined in the Stockholders Agreement.

     “Investor Shares” means Equity Shares of any type held by the Investors and shall
include any stock, securities or other property or interests received by the Investors in
respect of Equity Shares in connection with any stock dividend or other similar distribution, stock split
or combination of shares, recapitalization, conversion, reorganization, consolidation, split-up,
spin-off, combination, repurchase, merger, exchange of stock or other transaction or event that
affects the Company’s capital stock occurring after the date of issuance.

     “Members of the Immediate Family” means, with respect to an individual, each spouse
or child or other descendant of such individual, each trust created solely for the benefit of
one or more of the aforementioned persons and their spouses and each custodian or guardian of any
property of one or more of the aforementioned persons in his or her capacity as such custodian
or guardian.

     “Permitted Transferee” means (a) the Optionee’s estate, executors, administrators,
personal representatives, heirs, legatees or distributees, in each case acquiring the Received
Shares in question pursuant to the will or other instrument taking effect at death of such
Optionee or by applicable laws of descent and distribution, or (b) a trust, private foundation or
entity formed for estate planning purposes for the benefit of the Optionee and/or any of the Members
of the Immediate Family of such Optionee. In addition, the Optionee shall be a Permitted
Transferee of the Optionee’s Permitted Transferees.

     “Public Offering” means a public offering and sale of shares of common stock of the
Company, for cash pursuant to an effective registration statement under the Securities Act of
1933, as amended.

     “Qualified Public Offering” means the first underwritten Public Offering after the
Grant Date pursuant to an effective registration statement (other than on Form S-4, S-8 or a
comparable

8

 

form) in connection with which the Company or any of the Sponsors or their respective
Affiliates or Affiliated Funds receives sale proceeds therefrom.

     “Return to Investor” means the return to the Sponsors and their respective Affiliates and
Affiliated Funds, measured in the aggregate, on their cash investment to purchase Investor
Shares, taking into account the amount of all cash dividends and cash distributions to the
Sponsors and their respective Affiliates and Affiliated Funds in respect of their Investor
Shares and all cash proceeds to the Sponsors and their respective Affiliates and Affiliated Funds
from the sale or other disposition of such Investor Shares.

     “Sponsors” shall mean Bain Capital (CC) IX L.P. and Thomas H. Lee Equity Fund VI, L.P.

     “Stockholders Agreement” means the Stockholders Agreement, dated as of July 29,
2008, as amended from time to time, by and among the Company, BT Triple Crown Merger Co.,
Inc. and other stockholders of the Company who from time to time may become parties thereto.

     “Transfer” means any sale, pledge, assignment, encumbrance, distribution or other
transfer or disposition of shares or other property to any other Person, whether directly,
indirectly, voluntarily, involuntarily, by operation of law, pursuant to judicial process or
otherwise.

     13. General. For purposes of this Option and any determinations to be made by the
Administrator or Committee, as the case may be, hereunder, the determinations by the
Administrator or Committee, as the case may be, shall be binding upon the Optionee and any
transferee.

     IN WITNESS WHEREOF, the Company has caused this Option to be executed under its
corporate seal by its duly authorized officer. This Option shall take effect as a sealed instrument

	 	 	 	 	 
	 	CC MEDIA HOLDINGS, INC.

 	 
	 
	 	By:  	 	 
	 	 	Name:  	Mark P. Mays 	 
	 	 	Title:  	CEO 	 
	 

Dated:

Acknowledged and Agreed

9

 

	 	 	 	 	 
	 	 
	 	 
	Name:	 
	 	 
	Address of Principal Residence:	 
	 	 
	 	 
	 
	 	 
	 
	 	 
	 

10

 

SENIOR MANAGEMENT OPTION AGREEMENT

Optionee:                                         

     This Option and any securities issued upon exercise of this Option are subject to restrictions on transfer and requirements of sale and other provisions as set forth below.

CC MEDIA HOLDINGS, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

     This stock option (the “Option”) is granted by CC Media Holdings, Inc., a Delaware corporation (the “Company”), to the Optionee, pursuant to the Company’s 2008 Executive
Incentive Plan (as amended from time to time, the “Plan”). For the purpose of this Senior Management Option Agreement (the “Agreement”), the “Grant Date” shall mean July 30, 2008.

     1. Grant of Option. The Agreement evidences the grant by the Company on the Grant Date to the Optionee of an option to purchase, in whole or in part, on the terms
provided herein and in the Plan, shares of class A common stock of the Company, par value $.001 per share (the “Shares”), as set forth below:

	 	(a)	 	                     Shares at $36.00 per Share (the “Tranche 1 Options”);
	 
	 	(b)	 	                     Shares at $36.00 per Share (the “Tranche 2 Options”); and
	 
	 	(c)	 	                     Shares at $36.00 per Share (the “Tranche 3 Options”).”

     The Option evidenced by this Agreement is not intended to qualify as an incentive stock option under Section 422 of the Code.

     2. Vesting.

     (a) During Employment. During the Optionee’s Employment, this Option shall vest as follows:

     (i) Tranche 1: The Tranche 1 Options will vest and become exercisable with respect to 20% of the Tranche 1 Options on each of the first,
second, third, fourth and fifth anniversaries of the Grant Date.

     (ii) Tranche 2: The Tranche 2 Options will become eligible to vest (subject to achieving a 2.0x Return to Investor) with respect to 20% of the
Tranche 2 Options on each of the first, second, third, fourth and fifth anniversaries of the Grant Date. Tranche 2 Options that are eligible to vest shall only vest
and become exercisable upon the achievement of a 2.0x Return to Investor. Subject to the other terms and provisions of this Agreement and the Plan, Tranche 2 Options
not eligible to vest on the date a 2.0x Return to Investor is achieved, shall thereafter vest and become exercisable when they become eligible to vest.

1

 

     (iii) Tranche 3: The Tranche 3 Options will become eligible to vest (subject to achieving a 2.5x Return to Investor) with respect to 20% of the
Tranche 3 Options on each of the first, second, third, fourth and fifth anniversaries of the Grant Date. Tranche 3 Options that are eligible to vest shall only vest
and become exercisable upon the achievement of a 2.5x Return to Investor. Subject to the other terms and provisions of this Agreement and the Plan, Tranche 3
Options not eligible to vest on the date a 2.5x Return to Investor is achieved, shall thereafter vest and become exercisable when they become eligible to vest.

     (b) Change of Control. Notwithstanding any other provision of this Section 2, in the event of a Change of Control, 100% of the then outstanding and unvested Tranche
2 and Tranche 3 Options shall become eligible to vest and shall vest and become exercisable to the extent that the applicable Return to Investor is achieved upon the
Change of Control.

     (c) Termination of Employment.

     (i) Notwithstanding any other provision of this Section 2 and subject to Section 2(c)(ii) below, automatically and immediately upon the cessation of
Employment, all outstanding and unvested Tranche 1, 2 and 3 Options shall cease to be exercisable and will terminate.

     (ii) Notwithstanding Section 2(c)(i), in the event the Optionee’s Employment is terminated by the Company without Cause during the twelve (12) months following a Change of Control, 100% of the then outstanding and
unvested Tranche 1 Options will vest and become exercisable in accordance with Section 3(a) below.

Notwithstanding the foregoing (but subject to any contrary provision of this Agreement or any other written agreement between the Company and the Optionee with respect to vesting and
termination of Shares granted under the Plan), no Options shall vest or shall become eligible to vest on any date specified above unless the Optionee is then, and since the Grant Date has
continuously been, an Employee.

     3. Exercise of Option. Each election to exercise this Option shall be subject to the terms and conditions of the Plan and shall be in writing, signed by the Optionee or by his or
her executor or administrator or by the person or persons to whom this Option is transferred by will or the applicable laws of descent and distribution (the “Legal Representative”), and made
pursuant to and in accordance with the terms and conditions set forth in the Plan. In addition to the methods of payment otherwise permitted by the Plan, the Administrator shall, at the
election of the Optionee, hold back Shares from an Option having a Fair Market Value equal to the exercise price in payment of the Option exercise price. The latest date on which this Option
may be exercised (the “Final Exercise Date”) is the date which is the tenth anniversary of the Grant Date, subject to earlier termination in accordance with the terms and provisions of the Plan
and this Agreement. Notwithstanding the foregoing, and subject to the provisions of Section 2(b) above, the following rules will apply if a Optionee’s Employment ceases in all circumstances:

2

 

automatically and immediately upon the cessation of Employment, this Option will cease to be exercisable and will terminate, except that:

     (a) any portion of this Option held by the Optionee or the Optionee’s permitted transferees, if any, immediately prior to the termination of the Optionee’s
Employment by reason of a termination by the Company without Cause, to the extent then vested and exercisable, will remain exercisable for the shorter of (i) a period
of 90 days or (ii) the period ending on the Final Exercise Date, and will thereupon terminate; and

     (b) any portion of this Option held by the Optionee or the Optionee’s permitted transferees, if any, immediately prior to the termination of the Optionee’s Employment by reason of death or Disability, to the extent then vested and
exercisable, will remain exercisable for the shorter of (i) the one year period ending with the first anniversary of the Optionee’s death or Disability, as the case may be, or (ii) the
period ending on the Final Exercise Date, and will thereupon terminate.

     4. Lock Up. The Optionee agrees that in connection with a public offering and sale of shares of Stock for cash by the Company pursuant to an effective registration statement
under the Securities Act of 1933, as amended (a “Public Offering”) and upon the Company’s or underwriter’s request, the Optionee will not sell, make any short sale of, loan, grant any
option for the purchase of, pledge, enter into any swap or other arrangement that transfers any of the economic consequences of ownership, or, otherwise encumber or otherwise dispose of any of the
Shares issued upon exercise of this Option for such period as the Company or underwriter may request, commencing on the effective date of the registration statement relating to any such
offering and continuing for not more than 90 days (or 180 days in the case of any public offering up to and including the public offering that is the first underwritten public offering after
the date of the Merger (other than on Form S-4, S-8 or a comparable form) in connection with which the Company or its majority shareholders receives sale proceeds therefrom), except with the prior
written consent of the Company or underwriter. The Optionee agrees that he or she will sign a “lock up” or similar agreement in connection with a Public Offering on terms and conditions
that the Company or underwriter deems necessary or desirable. For the avoidance of doubt this Agreement and the Shares issued pursuant to this Agreement are not subject to the Stockholders
Agreement.

     5. Withholding. No Shares will be transferred pursuant to the exercise of this Option unless and until the person exercising this Option shall have remitted to the Company
an amount sufficient to satisfy any federal, state, or local Withholding tax requirements, or shall
have made other arrangements satisfactory to the Company with respect to such taxes. The
Administrator may, in its sole discretion, hold back Shares otherwise receivable under this
Agreement or permit the Optionee to tender previously owned shares of Stock in satisfaction of
tax withholding requirements (but not in excess of the applicable minimum statutory
withholding rate).

3

 

     6. Nontransferability of Option. This Option is not transferable by the Optionee
other than by will or the applicable laws of descent and distribution, and is exercisable
during the
Optionee’s lifetime only by the Optionee.

     7. Status Change. Upon the termination of the Optionee’s Employment, this Option
shall continue or terminate, as and to the extent provided in the Plan and this Agreement.

     8. Effect on Employment. Neither the grant of this Option, nor the issuance of
Shares upon exercise of this Option, shall give the Optionee any right to be retained in the
employ of the Company or its Affiliates, affect the right of the Company or its Affiliates to
discharge or discipline such Optionee at any time, or affect any right of such Optionee to
terminate his or her Employment at any time.

     9. Non-Competition, Non-Solicitation, Non-Disclosure. The Board shall have the
right to cancel, modify, rescind, suspend, withhold or otherwise limit or restrict this
Option,
including, without limitation, canceling or rescinding this Option if the Board determines
that the
Optionee is not in compliance with any non-competition or non-solicitation or non-disclosure
agreement with the Company and such non-compliance has not been authorized in advance in a
specific written waiver from the Company. In addition, in the event of any such violation of
such agreement (without the advance written consent of the Company) that occurs during the
period following termination of employment covered by any such agreement, the Company may
require that (i) the Optionee sell to the Company Shares received by the Optionee upon
exercise
of the Option and then held by the Optionee for a purchase price equal to the aggregate
exercise
price of the Option; or (ii) the Optionee remit or deliver to the Company (1) the amount of
any
gain realized upon the sale of any Shares received pursuant to this Option, and (2) any
consideration received upon the exchange of any Shares received pursuant to this Option (or
the
extent that such consideration was not received in the form of cash, the cash equivalent
thereof
valued at the time of the exchange). The Company shall have the right to offset, against any
Shares and any cash amounts due to the Optionee under or by reason of Optionee’s holding this
Option, any amounts to which the Company is entitled as a result of Optionee’s violation of
the
terms of any non-competition, non-solicitation or non-disclosure agreement with the Company or
Optionee’s breach of any duty to the Company. Accordingly, Optionee acknowledges that (i) the
Company may withhold delivery of Shares, (ii) the Company may place the proceeds of any sale
or other disposition of Shares in an escrow account of the Company’s choosing pending
resolution of any dispute with the Company, and (iii) the Company has no liability for any
attendant market risk caused by any such delay, withholding, or escrow. The Optionee
acknowledges and agrees that the calculation of damages from a breach of an agreement with the
Company or of any duty to the Company would be difficult to calculate accurately and that the
right to offset or other remedy provided for herein is reasonable and not a penalty. The
Optionee
further agrees not to challenge the reasonableness of such provisions even where the Company
rescinds, delays, withholds or escrows Shares or proceeds or uses those Shares or proceeds as
a
setoff.

     10. Provisions of the Plan. This Option is subject in its entirety to the provisions
of
the Plan, which are incorporated herein by reference. A copy of the Plan as in effect on the
date
of the grant of this Option has been furnished to the Optionee. By exercising all or any part
of
this Option, the Optionee agrees to be bound by the terms of the Plan and this Agreement. In
the

4

 

event of any conflict between the terms of this Agreement and the Plan, the terms of this Agreement shall control.

     11. Definitions. The initially capitalized terms Optionee and Grant Date shall
have
the meanings set forth on the first page of this Agreement; initially capitalized terms not
otherwise defined herein shall have the meaning provided in the Plan, and, as used herein,
the
following terms shall have the meanings set forth below:

     “Affiliate” means, with respect to any specified Person, (a) any other Person that
directly
or indirectly through one or more intermediaries controls, or is controlled by, or is under
common control with, such specified Person, or (b) if such specified Person is a natural
person,
any member of the immediate family of such specified Person. For the purposes of this
Agreement, “control” (including, with correlative meanings, the terms “controlling,”
“controlled
by” and “under common control with”), as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the direction of the
management
or policies of such Person, whether through the ownership of voting securities, by agreement
or
otherwise. For purposes of this Agreement, none of the Company or any of its subsidiaries
will
be considered an Affiliate of any of the Sponsors or any of their respective Affiliates or
Affiliated Funds.

     “Affiliated Fund” means, with respect to any specified Person, (i) an investment fund
that
is an Affiliate of such Person or that is advised by the same investment adviser as such
Person or
by an Affiliate of such investment adviser or such Person or, with respect to a Person that is
a
Sponsor or an Affiliate of a Sponsor, (ii) any other partnership, limited liability company or
other
legal entity controlled (a) jointly by the Sponsors and/or their respective Affiliates or (b)
individually by a single Sponsor and/or its Affiliates, in each case (a) and (b) that is
formed to
invest directly or indirectly in the Company and that is designated as an Affiliate by the
Sponsor
or Sponsors that control, or whose Affiliates control, such entity.

     “Change of Control” means (a) any consolidation or merger of the Company with or into
any other corporation or other Person, or any other corporate reorganization or transaction
(including the acquisition of capital stock of the Company), whether or not the Company is a
party thereto, after which the Sponsors and their respective Affiliated Funds and Affiliates do not
directly or indirectly control capital stock representing more than 25% of the economic interests
in and 25% of the voting power of the Company or other surviving entity immediately after such
consolidation, merger, reorganization or transaction; (b) any sale or other transaction or series of
related transactions, whether or not the Company is a party thereto, after which in excess of 50%
of the Company’s voting power is owned directly or indirectly by any Person and its “affiliates”
or “associates” (as such terms are defined in the rules adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended), other than the Sponsors
and their respective Affiliated Funds and Affiliates (or a group of Persons that includes such
Persons); or (c) a sale of all or substantially all of the assets of the Company to any Person and
the “affiliates” or “associates” of such Person (or a group of Persons acting in concert), other
than the Sponsors and their respective Affiliated Funds and Affiliates (or a group of Persons that includes such Persons).

     “Cause” means (1) the Optionee’s failure to perform (other than by reason of Disability),

5

 

or material negligence in the performance of, his or her duties and responsibilities to the
Company or any of its Affiliates; (2) material breach by the Optionee of any provision of this
Agreement or any employment or other written agreement; or (3) other conduct by the Optionee
that is materially harmful to the business, interests or reputation of the Company or any of its
Affiliates.

     “Disability” shall have the meaning ascribed to such term in any employment agreement
other similar agreement between the Optionee and the Company or any of its subsidiaries, or,
if
no such agreement exists or the provisions of such agreements conflict, the disability of a
Optionee during his or her Employment through any illness, injury, accident or condition of
either a physical or psychological nature as a result of which, in the judgment of the Board,
he or
she is unable to perform substantially all of his duties and responsibilities, notwithstanding
the
provision of any reasonable accommodation, for ninety (90) consecutive days during any period
of three hundred and sixty-five (365) consecutive calendar days.

     “Investor Shares” means Shares of any type held by Clear Channel Capital IV, LLC and
any successors in interest thereto and Clear Channel Capital V, L.P. and any successors in
interest thereto, (each, an “Investor”) and shall include any stock, securities or other
property or
interests received by the Investors in respect of Investor Shares in connection with any stock
dividend or other similar distribution, stock split or combination of shares,
recapitalization,
conversion, reorganization, consolidation, split-up, spin-off, combination, repurchase,
merger,
exchange of stock or other transaction or event that affects the Company’s capital stock
occurring after the date of issuance.

     “Person” means any natural person or individual, partnership, corporation, company,
association, trust, joint venture, limited liability company, unincorporated organization,
entity or
division, or any government, governmental department or agency or political subdivision
thereof.

     “Return to Investor” means the return to the Sponsors, measured in the aggregate, on
their cash investment to purchase Investor Shares, taking into account the amount of all cash
dividends and cash distributions to such Sponsors in respect of their Investor Shares and all
cash
proceeds to such Sponsors from the sale or other disposition of such Investor Shares.

     “Sponsors” shall mean Bain Capital (CC) IX L.P. and its Affiliates and THL Equity Fund
VI, L.P. and its Affiliates.

     “Stock” means class A common stock of CC Media Holdings, Inc, par value $.001 per
share.

     12. General. For purposes of this Option and any determinations to be made by the
Administrator or the Committee, as the case may be, hereunder, the determinations by the
Administrator or the Committee, as the case may be, shall be binding upon the Optionee and any
transferee.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
under its corporate seal by its duly authorized officer. This Agreement shall take
effect as a
sealed instrument.

6

 

	 	 	 	 	 
	 	CC MEDIA HOLDINGS, INC.

 	 
	 
	 	By:  	 	 
	 	 	Name:  	Mark P. Mays 	 
	 	 	Title:  	CEO 	 
	 

Dated:

Acknowledged and Agreed

	 	 	 
	 

Name:

	 	 
	 
	 	 
	Address of Principal Residence:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

7

 

EXHIBIT C

Form of Rollover Option Agreement

-16-

 

ROLLOVER OPTION AGREEMENT

Optionee:

     This Option and any securities issued upon exercise of this Option are subject to
restrictions on voting and transfer and requirements of sale and other provisions set forth in
the
Stockholders Agreement, to be entered into on or before the Closing Date (as that term is
defined
in the Merger Agreement), among CC Media Holdings, Inc., BT Triple Crown Merger Co., Inc.
(“MergerSub”), Clear Channel Capital IV, LLC, Clear Channel Capital V, L.P., Mark P.
Mays,
L. Lowry Mays, Randall T. Mays, and other stochholders of CC Media Holdings, Inc. who from
time to time may become a party thereto, as amended from time to time (the “Stockholders
Agreement”), and the Side Letter Agreement, to be entered into on or before the Closing Date,
among CC Media Holdings, Inc., MergerSub, Clear Channel Capital IV, LLC, Clear Channel
Capital V, L.P., Mark P. Mays, L. Lowry Mays and Randall T. Mays (“Side Letter Agreement, together with the Stockholders Agreement, the “Equity Agreements ”). This Option and any
securities delivered hereunder constitute Executive Shares as defined in the Stockholders
Agreement.

CC MEDIA HOLDINGS, INC.

INCENTIVE STOCK OPTION AGREEMENT

     This stock option agreement (the “Agreement”) is hereby entered into between CC Media
Holdings, Inc., a Delaware corporation (the “Company”), and the Optionee pursuant to the
Company’s 2008 Executive Incentive Plan, as amended from time to time (the “Plan”). For the
purpose of this Agreement, the “Grant Date” shall mean the Closing Date (as that term is
defined
in the Merger Agreement).

	 	1.	 	Grant of Option. This Agreement evidences the grant by the Company on the Grant
Date to the Optionee of an incentive stock option to purchase (the “Option”), in whole or
in part, on the terms provided herein and in the Plan,                                  shares of Class A Common
Stock of the Company, par value $.001 per share (the “Shares”) at $[    ] per
Share.1 The
Option evidenced by this certificate is intended to qualify as an incentive stock
option
under Section 422 of the Internal Revenue Code (the “Code”). This Option is granted in
substitution of an option (which option is hereby deemed cancelled as of the Closing
Date) held by the Optionee under equity incentive plans maintained by Clear Channel
Communications, Inc. (the “Rollover Option”). Except as permitted in Section 422
Rollover Law and expressly provided in this Agreement, the terms of the Rollover Option
are deemed incorporated into this Option; it being understood, that the exercise price and
the number of shares subject thereto may be adjusted as permitted under Section 422
Rollover Law. The Option shall be subject to the terms of the plan that previously
governed the Rollover Option immediately prior to the date hereof, and to the terms of
any other agreement previously governing the Rollover Option for which this Option is
substituted to the extent required by Section 422 Rollover Law, and will also be governed

 

			
	1	 	Exercise price of the option to be reduced to the extent permitted by law, provided that
the ratio of the
option price to the fair market value of the shares subject to the rolled option shall be
maintained.

 

 

	 	 	 
	 
	 	 	by the Plan, as applicable, and the Equity Agreements, in each case to the extent
consistent with Section 422 Rollover Law.

	 	2.	 	Vesting. The Option will be fully vested upon grant.
	 
	 	3.	 	Exercise of Option. Each election to exercise this Option shall be subject to the terms
and conditions of the Plan and shall be in writing, signed by the Optionee or by his or her
executor or administrator or by the Person or Persons to whom this Option is transferred
by will or the applicable laws of descent and distribution (the “Legal Representative”),
and made pursuant to and in accordance with the terms and conditions set forth in the
Plan. In addition to the methods of payment otherwise permitted by the Plan, the
Administrator shall, at the election of the Optionee, hold back Shares from an
Award
having a Fair Market Value equal to the exercise price in payment of the Option exercise
price. The latest date on which this Option may be exercised (the “Final Exercise Date”)
is the latest date upon which the Rollover Option was exercisable, subject to earlier
termination in accordance with the terms and provisions of the Plan and this Agreement.
	 
	 	4.	 	Other Agreements. Optionee acknowledges and agrees that the Shares received upon
exercise of this Option shall be subject to the Equity Agreements and the transfer and
other restrictions, rights, and obligations set forth therein.
	 
	 	5.	 	Extraordinary Dividends. Notwithstanding anything set forth in the Plan to the
contrary, however, in the event of the payment of any extraordinary cash dividend on
Shares (a “Special Dividend Payment”), the Optionee shall be entitled to receive a
payment in an amount equal to the cash dividends the Optionee would have received (a
“Dividend Equivalent Payment”), if the Optionee held as a stockholder the same number
of Shares subject to the Option, which payment shall be made at the same time as such
Special Dividend Payments are made. Notwithstanding Section 9 of the Plan, the
Administrator shall not, without the Optionee’s consent, alter the terms of the Plan or the
Agreement so as to adversely affect the Optionee’s rights under this Agreement.
	 
	 	6.	 	Corporate Transaction. In the event of a Corporate Transaction subsequent to the
Merger contemplated by the Merger Agreement in which holders of Stock will receive
upon consummation a payment (whether cash, non-cash or a combination of the
foregoing), the Optionee shall be entitled to receive, in consideration for any portion of
the Option then outstanding such payment (a “cash-out”), equal to the excess, if any, of
(A) the price paid in such Corporate Transaction for one Share times the number of
Shares subject to the Option, over (B) the aggregate exercise price, if any, under the
Option, in each case on such payment terms (which shall be the same as the terms of
payment to holders of Stock) and other terms, and subject to such conditions, as are
consistent with those applied to the consideration received by holders of Stock in the
transaction, as the Administrator reasonably and in good faith determines.
	 
	 	7.	 	Withholding. No Shares will be transferred pursuant to the exercise of this Option
unless and until the Person exercising this Option shall have remitted to the Company an
amount sufficient to satisfy any federal, state, or local withholding tax requirements, or
shall have made other arrangements satisfactory to the Company with respect to such

 

 

	 	 	 	taxes. The Administrator will make such provision for the withholding of taxes as it
deems necessary. The Administrator shall, at the election of the Optionee, hold back
Shares from the Option or permit a Optionee to tender previously owned Shares in
satisfaction of tax withholding requirements (but not in excess of the applicable minimum
statutory withholding rate).

	 	8.	 	Nontransferability of Option. This Option is not transferable by the Optionee other
than by will or the applicable laws of descent and distribution, and, subject to the
foregoing provision, is exercisable during the Optionee’s lifetime only by the Optionee.
	 
	 	9.	 	Status Change. Upon the termination of the Optionee’s Employment, this Option shall
continue or terminate, as and to the extent provided in the Plan, except to the extent
required under Section 422 Rollover Law.
	 
	 	10.	 	Effect on Employment. Neither the grant of this Option, nor the issuance of shares upon
exercise of this Option, shall give the Optionee any right to be retained in the employ of
the Company or its Affiliates, affect the right of the Company or its Affiliates to
discharge or discipline such Optionee at any time, or affect any right of such Optionee to
terminate his or her Employment at any time.
	 
	 	11.	 	Provisions of the Plan. This Option is subject to the terms of the plan that previously
governed the Rollover Option immediately prior to the date hereof and to the terms of
any other agreement previously governing the Rollover Option for which this Option is
substituted, which are incorporated herein by reference, to the extent required by Section
422 Rollover Law. The Option is also subject to the provisions of the Plan, as applicable,
which are also incorporated herein by reference. A copy of the Plan as in effect on the
date of the grant of this Option has been furnished to the Optionee. By exercising all or
any part of this Option, the Optionee agrees to be bound by the terms of the Plan and this
Option. In the event of any conflict between the terms of this Option and the Plan,
between this Option and the plan that previously governed the Rollover Option
immediately prior to the date hereof, or between this Option and any other agreement
previously governing the Rollover Option for which this Option is substituted, the terms
of this Option shall control, except to the extent required under Section 422 Rollover
Law. Notwithstanding Section 9 of the Plan, the Administrator shall not, without the
Grantee’s consent, alter the terms of the Plan or this Agreement so as to adversely affect
the Grantee’s rights under this Agreement.
	 
	 	12.	 	Definitions. The initially capitalized terms Optionee and Grant Date shall have the
meanings set forth on the first page of this Agreement; initially capitalized terms not
otherwise defined herein shall have the meaning provided in the Plan, and to the extent
not defined in the Plan, as defined in the Equity Agreements, the following terms shall
have the meanings set forth below:

          “Merger Agreement” shall mean shall mean the Agreement and Plan of Merger,
dated as of November 16, 2006 and amended on April 18, 2007 and May 17, 2007, by
and among the Company, MergerSub, B Triple Crown Finco, LLC, a Delaware limited
liability company, T Triple Crown Finco, LLC, a Delaware limited liability company,

 

 

and Clear Channel Communications, Inc., a Texas Corporation (“Clear Channel”), which
is being further amended by a third amendment (the “Third Amendment”) on or about
May 12, 2008.

          “Section 422 Rollover Law” shall mean Section 422 of the Code and guidance
issued thereunder (or applicable thereto) including Treasury Regulations in respect of
Section 422 of the Code, Treasury Regulation Section 1.424-1 and any subsequent
guidance under Section 422 of the Code.

	 	13.	 	General. For purposes of this Option and any determinations to be made by the
Administrator or the Committee, as the case may be, hereunder, the determinations by the
Administrator or the Committee, as the case may be, shall be binding upon the Optionee
and any transferee.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed under its
corporate seal by its duly authorized officer. This Agreement shall take effect as a sealed
instrument.

	 	 	 	 	 
	 	CC MEDIA HOLDINGS, INC.

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: 	 
	 

Dated:

Acknowledged and Agreed

	 	 	 
	 

Name:

	 	 
	 
	 	 
	Address of Principal Residence:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

 

ROLLOVER OPTION AGREEMENT

Optionee:

     This Option and any securities issued upon exercise of this Option are subject to restrictions
on voting and transfer and requirements of sale and other provisions set forth in the Stockholders
Agreement, to be entered into on or before the Closing Date (as that term is defined in the Merger
Agreement), among CC Media Holdings, Inc., BT Triple Crown Merger Co., Inc. (“MergerSub ”),
Clear Channel Capital IV, LLC, Clear Channel Capital V, L.P., Mark P. Mays, L. Lowry Mays, Randall
T. Mays, and other stockholders of CC Media Holdings, Inc. who from time to time may become a party
thereto, as amended from time to time (the “Stockholders Agreement”), and the Side Letter
Agreement, to be entered into on or before the Closing Date, among CC Media Holdings, Inc.,
MergerSub, Clear Channel Capital IV, LLC, Clear Channel Capital V, L.P., Mark P. Mays, L. Lowry
Mays and Randall T. Mays (“Side Letter Agreement, ” together with the Stockholders Agreement, the
“Equity Agreements ”). This Option and any securities delivered hereunder constitute
Executive Shares as defined in the Stockholders Agreement.

CC MEDIA HOLDINGS, INC.

NONQUALIFIED STOCK OPTION AGREEMENT

     This stock option agreement (the “Agreement”) is hereby entered into between CC Media
Holdings, Inc., a Delaware corporation (the “Company”), and the Optionee pursuant to the Company’s
2008 Executive Incentive Plan, as amended from time to time (the “Plan”). For the purpose of this
Agreement, the “Grant Date” shall mean the Closing Date (as that term is defined in the Merger
Agreement).

	1.	 	Grant of Option. This Agreement evidences the grant by the Company on the Grant
Date to the Optionee of an option to purchase (the “Option”), in whole or in part, on the
terms provided herein and in the Plan,            shares of Class A Common Stock of the
Company, par value $.001 per share (the “Shares”) at $ [   ] per Share. The Option evidenced
by this certificate is not intended to qualify as an incentive stock option under Section
422 of the Internal Revenue Code (the “Code”). This Option is granted in substitution of an
option (which option is hereby deemed cancelled as of the Closing Date) held by the
Optionee under equity incentive plans maintained by Clear Channel Communications, Inc. (the
“Rollover Option”). Except as permitted in Section 409A Rollover Law and expressly provided
in this Agreement, the terms of the Rollover Option are deemed incorporated into this
Option; it being understood, that the exercise price and the number of shares subject
thereto may be adjusted as permitted under Section 409A Rollover Law. The Option shall be
subject to the terms of the plan that previously governed the Rollover Option immediately
prior to the date hereof, and to the terms of any other agreement previously governing the
Rollover Option for which this Option is substituted to the extent required by Section 409A
Rollover Law, and will also be governed by the Plan, as applicable, and the Equity
Agreements, in each case to the extent consistent with Section 409A Rollover Law.

 

 

	2.	 	Vesting. The Option will be fully vested upon grant.
	 
	3.	 	Exercise of Option. Each election to exercise this Option shall be subject to the terms and
conditions of the Plan and shall be in writing, signed by the Optionee or by his or her
executor or administrator or by the Person or Persons to whom this Option is transferred by
will or the applicable laws of descent and distribution (the “Legal Representative”), and made
pursuant to and in accordance with the terms and conditions set forth in the Plan. In addition
to the methods of payment otherwise permitted by the Plan, the Administrator shall, at the
election of the Optionee, hold back Shares from an Award having a Fair Market Value equal to
the exercise price in payment of the Option exercise price. The latest date on which this
Option may be exercised (the “Final Exercise Date”) is the latest date upon which the Rollover
Option was exercisable, subject to earlier termination in accordance with the terms and
provisions of the Plan and this Agreement.
	 
	4.	 	Other Agreements. Optionee acknowledges and agrees that the Shares received upon exercise of
this Option shall be subject to the Equity Agreements and the transfer and other restrictions,
rights, and obligations set forth therein.
	 
	5.	 	Extraordinary Dividends. Notwithstanding anything set forth in the Plan to the contrary,
however, in the event of the payment of any extraordinary cash dividend on Shares (a “Special
Dividend Payment”), the Optionee shall be entitled to receive a payment in an amount equal to
the cash dividends the Optionee would have received (a “Dividend Equivalent Payment”), if the
Optionee held as a stockholder the same number of Shares subject to the Option ,
which payment shall be made at the same time as such Special Dividend Payments are made.
Notwithstanding Section 9 of the Plan, the Administrator shall
not, without the Optionee’s
consent, alter the terms of the Plan or the Agreement so as to adversely affect the
Optionee’s rights under this Agreement.
	 
	6.	 	Corporate Transaction. In the event of a Corporate Transaction subsequent to the Merger
contemplated by the Merger Agreement in which holders of Stock will receive upon consummation
a payment (whether cash, non-cash or a combination of the
foregoing), the Optionee shall be entitled to receive, in consideration for any portion of
the Option then outstanding such payment (a “cash-out”), equal to the excess, if any, of (A)
the price paid in such Corporate Transaction for one Share times the number of Shares
subject to the Option, over (B) the aggregate exercise price, if any, under the Option, in
each case on such payment terms (which shall be the same as the terms of payment to holders
of Stock) and other terms, and subject to such conditions, as are consistent with those
applied to the consideration received by holders of Stock in the transaction, as the
Administrator reasonably and in good faith determines.
	 
	7.	 	Withholding. No Shares will be transferred pursuant to the exercise of this Option unless and
until the Person exercising this Option shall have remitted to the Company an amount
sufficient to satisfy any federal, state, or local withholding tax requirements, or shall have
made other arrangements satisfactory to the Company with respect to such taxes. The
Administrator will make such provision for the withholding of taxes as it deems necessary. The
Administrator shall, at the election of the Optionee, hold back Shares from the Option or
permit a Optionee to tender previously owned Shares in

 

 

	 	 	satisfaction of tax withholding requirements (but not in excess of the applicable minimum
statutory withholding rate).
	 
	8.	 	Nontransferability of Option. This Option is not transferable by the Optionee other than by
will or the applicable laws of descent and distribution, and, subject to the foregoing
provision, is exercisable during the Optionee’s lifetime only by the Optionee.
	 
	9.	 	Status Change. Upon the termination of the Optionee’s Employment, this Option shall continue
or terminate, as and to the extent provided in the Plan, except to the extent required under
Section 409A Rollover Law.
	 
	10.	 	Effect on Employment. Neither the grant of this Option, nor the issuance of shares upon
exercise of this Option, shall give the Optionee any right to be retained in the employ of the
Company or its Affiliates, affect the right of the Company or its Affiliates to discharge or
discipline such Optionee at any time, or affect any right of such Optionee to terminate his or
her Employment at any time.
	 
	11.	 	Provisions of the Plan. This Option is subject to the terms of the plan that previously
governed the Rollover Option immediately prior to the date hereof and to the terms of any
other agreement previously governing the Rollover Option for which this Option is substituted,
which are incorporated herein by reference, to the extent required by Section 409A Rollover
Law. The Option is also subject to the provisions of the Plan, as applicable, which are also
incorporated herein by reference. A copy of the Plan as in effect on the date of the grant of
this Option has been furnished to the Optionee. By exercising all or any part of this Option,
the Optionee agrees to be bound by the terms of the Plan and this Option. In the event of any
conflict between the terms of this Option and the Plan, between this Option and the plan that
previously governed the Rollover Option immediately prior to the date hereof, or between this
Option and any other agreement previously governing the Rollover Option for which this Option
is substituted, the terms of this Option shall control, except to the extent required under
Section 409A Rollover Law. Notwithstanding Section 9 of the Plan, the Administrator shall not,
without the Optionee’s consent, alter the terms of the Plan or this Agreement so as to
adversely affect the Optionee’s rights under this Agreement.
	 
	12.	 	Definitions. The initially capitalized terms Optionee and Grant Date shall have the meanings
set forth on the first page of this Agreement; initially capitalized terms not otherwise
defined herein shall have the meaning provided in the Plan, and to the extent not defined in
the Plan, as defined in the Equity Agreements, the following terms shall have the meanings set
forth below:

     “Merger Agreement” shall mean the Agreement and Plan of Merger, dated as of November
16, 2006 and amended on April 18, 2007, May 17, 2007, and May 13, 2008, by and among the
Company, MergerSub, B Triple Crown Finco, LLC, a Delaware limited liability company, T
Triple Crown Finco, LLC, a Delaware limited liability company, and Clear Channel
Communications, Inc., a Texas Corporation (“Clear Channel”).

 

 

     “Section 409A Rollover Law” shall mean Section 409A of the Code and guidance issued thereunder
(or applicable thereto) including Treasury Regulations in respect of Section 409A of the Code,
Treasury Regulation Section 1.424-1 and any subsequent guidance under Section 409A of the Code.

	13.	 	General. For purposes of this Option and any determinations to be made by the Administrator or the
Committee, as the case may be, hereunder, the determinations by the Administrator or the Committee,
as the case may be, shall be binding upon the Optionee and any transferee.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed under its corporate seal by its duly authorized officer. This Agreement shall take effect as a sealed instrument.

	 	 	 	 	 
	 	CC MEDIA HOLDINGS, INC.

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:

Acknowledged and Agreed

	 	 	 
	 

Name:

	 	 
	 
	 	 
	Address of Principal Residence:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

 

EXHIBIT D

Form of Restricted Stock Agreement

-17-

 

Name of Grantee:

This Award and any securities delivered hereunder are subject to restrictions on voting and
transfer and requirements of sale and other provisions set forth in the Stockholders Agreement,
to be entered into on or before the Closing Date (as that term is defined in the Merger
Agreement), among CC Media Holdings, Inc., BT Triple Crown Merger Co., Inc.
(“MergerSub”), Clear Channel Capital IV, LLC, Clear Channel Capital V, L.P., Mark P. Mays,
L. Lowry Mays, Randall T. Mays, and other stockholders of CC Media Holdings, Inc. who from
time to time may become a party thereto, as amended from time to time, (the “Stockholders
Agreement”), and the Side Letter Agreement, to be entered into on or before the Closing
Date, among CC Media Holdings, Inc., MergerSub, Clear Channel Capital IV, LLC, Clear Channel
Capital V, L.P., Mark P. Mays, L. Lowry Mays and Randall T. Mays (“Side Letter Agreement,
together with the Stockholders Agreement, the “Equity Agreements ”). This Award and any
securities delivered hereunder constitute Executive Shares as defined in the Stockholders
Agreement.

CC MEDIA HOLDINGS, INC.

Senior Executive Restricted Stock Award Agreement

CC Media Holdings, Inc.

c/o Clear Channel Communications, Inc.

200 East Basse Road

San Antonio, TX 78209

Attention: Bill Hamersly, SVP, Human Resources

Ladies and Gentlemen:

The undersigned Grantee (i) acknowledges receipt of an award (the “Award”) of restricted
stock from CC Media Holdings, Inc., a Delaware corporation (the “Company”), under the Company’s
2008 Executive Incentive Plan (the “Plan”), subject to the terms set forth below and in the
Plan, a copy of which Plan, as in effect on the date hereof, is attached hereto as Exhibit A; and (ii)
agrees with the Company as follows:

     1. Effective Date. This agreement (the “Award Agreement”) shall take effect as
of July 30, 2008, which is the grant date of the Award (the “Grant Date”). The Grantee
shall be the record owner of the Shares on the Grant Date.

     2. Shares
Subject to Award. The Award consists of a total of            shares of Class
A Common Stock of the Company, par value $.001 per share (the “Shares”) with a Fair Market
Value on the Grant Date of $36.00 per Share and
                     in the aggregate.

     The Grantee’s rights to the Shares are subject to the restrictions described in this Award
Agreement and the Plan (which is incorporated herein by reference with the same effect as if
set forth herein in full) in addition to such other restrictions, if any, as may be imposed by
law.

 

 

     3.
Nontransferability of Shares. The Shares acquired by the
Grantee pursuant to this
Award Agreement shall not be sold, transferred, pledged, assigned or otherwise encumbered or
disposed of except as provided in the Equity Agreements.

     4. Forfeiture Risk. If the Grantee’s Employment with the Company and its
subsidiaries ceases for any reason, other than death, Disability, termination of employment by
the Company without Cause, or resignation by Grantee for Good Reason, then any and all
outstanding and unvested Shares acquired by the Grantee hereunder shall be automatically and
immediately forfeited.

The Grantee hereby (i) appoints the Company as the attorney-in-fact of the Grantee to take such
actions as may be necessary or appropriate to effectuate a transfer of the record ownership of any
Shares that are unvested and forfeited hereunder, (ii) agrees to deliver to the Company, as a
precondition to the issuance of any certificate or certificates with respect to unvested Shares
hereunder, one or more stock powers, endorsed in blank, with respect to such Shares, and (iii)
agrees to sign such other powers and take such other actions as the Company may reasonably
request to accomplish the transfer or forfeiture of any unvested Shares that are forfeited
hereunder.

     5. Certificates. The Company will, on or subsequent to the Grant Date, issue the
Grantee a certificate representing the Shares. If unvested Shares are held in book entry form
at any time thereafter, the Grantee agrees that the Company may give stop transfer instructions
to the depositary, stock transfer agent or other keeper of the Company’s stock records to ensure
compliance with the provisions hereof.

     6. Vesting of Shares. Unless earlier vested pursuant to the Plan, the
Shares acquired hereunder shall Vest during the Grantee’s Employment by the Company or a subsidiary thereof
in accordance with the provisions of this Section 6 and applicable provisions of the Plan as
follows:

          20% on and after the first anniversary of the Grant Date;

          20% on and after the second anniversary of the Grant Date;

          20% on and after the third anniversary of the Grant Date;

          20% on and after the fourth anniversary of the Grant Date; and

          20% on and after the fifth anniversary of the Grant Date.

Notwithstanding the above, 100% of the Grantee’s outstanding and unvested Shares shall Vest
immediately upon the earlier to occur of (i) a Change of Control subsequent to the Merger
contemplated by the Merger Agreement (so long as the Grantee is employed with the Company
or any subsidiary thereof) or (ii) the termination of the Grantee’s Employment with the Company
and its subsidiaries due to death, Disability, termination of employment by the Company without
Cause, or resignation by Grantee for Good Reason.

     7. Legend. In addition to any legend required by the Equity Agreements or

-2-

 

applicable law, any certificates representing Shares shall contain a legend substantially in the
following form:

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK
REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS
(INCLUDING FORFEITURE) OF THE CLEAR CHANNEL 2008 EXECUTIVE
INCENTIVE PLAN AND A RESTRICTED STOCK AWARD AGREEMENT
ENTERED INTO BETWEEN THE REGISTERED OWNER AND CC MEDIA
HOLDINGS, INC. AND THE STOCKHOLDERS AGREEMENT, DATED AS OF
JULY 29, 2008, AMONG CC MEDIA HOLDINGS, INC., BT TRIPLE CROWN
MERGER CO., INC., CLEAR CHANNEL CAPITAL IV, LLC, CLEAR CHANNEL
CAPITAL V, L.P., MARK P. MAYS, L. LOWRY MAYS, RANDALL T. MAYS, AND
OTHER STOCKHOLDERS OF CC MEDIA HOLDINGS, INC. WHO FROM TIME TO
TIME MAY BECOME A PARTY HERETO. COPIES OF SUCH PLAN, AWARD
AGREEMENT AND STOCKHOLDERS AGREEMENT ARE ON FILE IN THE
OFFICES OF CC MEDIA HOLDINGS, INC.

Upon the request of the Grantee, as soon as practicable following the Vesting of any such Shares
the Company shall cause a certificate or certificates covering such Shares, without the aforesaid
legend, to be issued and delivered to the Grantee. If any Shares are held in book-entry form, the
Company may take such steps as it deems necessary or appropriate to record and manifest the
restrictions applicable to such Shares.

     8. Dividends, etc. The Grantee shall be entitled to (i) receive any and all dividends
or other distributions paid with respect to those vested and unvested Shares of which the
Grantee is the record owner on the record date for such dividend or other distribution, whether or not
Vested at such time, in the same form and amount as any holder of Stock receives, and (ii)
subject to the terms of the Equity Agreements, vote any Shares of which the Grantee is the
record owner on the record date for such vote; provided, however, that any property (other
than cash) distributed with respect to a share of Stock (the “Associated Share”) acquired
hereunder, by reason of a stock dividend, stock split or other similar adjustment to the Stock pursuant
to Section 7(b) of the Plan, shall be subject to the restrictions of this Award Agreement in the
same manner and for so long as the Associated Share remains subject to such restrictions, and shall
be promptly forfeited if and when the Associated Share is so forfeited.

     9. Sale of Vested Shares. The Grantee understands that the sale of any
Share, once it has Vested, will remain subject to (i) satisfaction of applicable tax withholding requirements,
if any, with respect to the Vesting or transfer of such Share; (ii) the completion of any
administrative steps (for example, but without limitation, the transfer of certificates) that the
Company may reasonably impose; (iii) applicable requirements of federal and state securities
laws; and (iv) the terms and conditions of the Equity Agreements to the extent that they are then
in effect.

     10. Provisions of the Plan. This Grant is subject it its entirety to the provisions of the Plan, which are incorporated herein by reference. A copy of the Plan as in effect on the date of
the grant of this Award has been furnished to the Grantee and the Grantee agrees to be bound by
the terms of the Plan and this Award. In the event of any conflict between the terms of this

-3-

 

Award and the Plan, the terms of this Award shall control. Notwithstanding Section 9 of the
Plan, the Administrator shall not, in order to avoid liability accounting as provided therein,
revoke or reduce the amount of any Award, but may impose reasonable terms and conditions on
the exercise of put rights, call rights and other transactions as may be reasonably necessary to
avoid the treatment of the grant as a liability award under FASB. Notwithstanding Section 9 of
the Plan, the Administrator shall not, without the Grantee’s consent, alter the terms of the Plan
or this Award Agreement so as to adversely affect the Grantee’s rights under this Award
Agreement.

     11. Other Agreements. Grantee acknowledges and agrees that the Shares delivered
under this Award Agreement shall be subject to the Equity Agreements and the transfer and
other restrictions, rights, and obligations set forth therein. By executing this Award
Agreement, Grantee hereby becomes a party to and bound by the Equity Agreements as an Executive (as
such term is defined in the Stockholders Agreement and used in the Side Letter Agreement),
without any further action on the part of Grantee, the Company or any other Person.

     12. Certain Tax Matters. The Grantee expressly acknowledges the following:

A. The Grantee has been advised to confer promptly with a professional tax advisor to
consider whether the Grantee should make a so-called “83(b) election” with respect to the
Shares. Any such election, to be effective, must be made in accordance with applicable
regulations and within thirty (30) days following the date this Award is granted and the
Grantee must provide the Company with a copy of the 83(b) election prior to filing. The
Company has made no recommendation to the Grantee with respect to the advisability of
making such an election.

B. The award or Vesting of the Shares acquired hereunder, and the payment of dividends
with respect to such Shares, may give rise to “wages” subject to withholding. The
Grantee expressly acknowledges and agrees that his or her rights hereunder are subject to
his or her promptly paying to the Company in cash (or by such other means as may be
acceptable to the Company in its discretion), all taxes required to be withheld in
connection with such award, Vesting or payment. Notwithstanding the foregoing, the
Administrator shall, at the election of the Participant, hold back Shares from an Award or
permit the Grantee to tender previously owned shares of Stock in satisfaction of tax
withholding requirements (but not in excess of the applicable minimum statutory
withholding rate).

     13. Definitions. The initially capitalized term Grantee shall have the meaning set
forth on the first page of this Award Agreement; initially capitalized terms not otherwise
defined herein shall have the meaning provided in the Plan, and to the extent not defined in the Plan,
then as defined in the Equity Agreements. The following terms shall have the meanings set forth
below:

     “Cause” has the meaning set forth in the Employment Agreement.

     “Change of Control” has the meaning set forth in the Stockholders Agreement.

     “Disability” has the meaning set forth in the Employment Agreement.

-4-

 

     “Employment Agreement” shall mean the employment agreement entered into between
the Company, BT Triple Crown Merger Co., Inc. and the Grantee dated July 28, 2008.

     “Good Reason” has the meaning set forth in the Employment Agreement.

     “Investors” has the meaning set forth in the Stockholders Agreement.

     “Merger Agreement” shall mean the Agreement and Plan of Merger, dated as of
November 16, 2006 and amended on April 18, 2007, May 17, 2007 and May 13, 2008, by and
among the Company, MergerSub, B Triple Crown Finco, LLC, a Delaware limited liability
company, T Triple Crown Finco, LLC, a Delaware limited liability company, and Clear Channel
Communications, Inc., a Texas Corporation (“Clear Channel”).

     “Vest” as used herein with respect to any Share means the lapsing of the restrictions
described herein with respect to such Share.

     14. General. For purposes of this Award Agreement and any determinations to be
made by the Administrator or the Committee, as the case may be, here under, the determinations
by the Administrator or the Committee, as the case may be, shall be binding upon the Grantee
and any transferee.

[Remainder of the page intentionally left blank]

-5-

 

	 	 	 	 	 
	 

	 	Very truly yours,	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	Address:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

Dated:

The foregoing Restricted Stock

Award is hereby accepted:

CC MEDIA HOLDINGS, INC.

	 	 	 
	 
	 	 
	   
	Name: Andrew Levin
	 	 
	Title: Executive Vice President and Chief Legal Officer

 

 

Section 83(b) Election

[DATE]

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301-0002

Ladies and Gentlemen:

     I hereby make an election pursuant to Section 83(b) of the Internal Revenue Code of
1986, as amended. The following information is submitted as required by Treas. Reg.
§ 1.83-2(e):

	 	 	 	 	 
	1.

	 	Name of Taxpayer:	 	«First_Name» «Last_Name»

	 
	 	 	 	 
	 

	 	Home Address:	 	«Street»

	 

	 	 	 	«City», «State» «Zip»

	 
	 	 	 	 
	 

	 	Social Security No.:	 	 
	 

	 	 	 	 
	 	 	 	 	 
	2.

	 	Property for which election is made:
	 	«Total_Shares» Shares of Class A

Common Stock of CC Media Holdings, Inc.

	 
	 	 
	3.

	 	Date of Transfer:	 	 
	 
	 	 	 	 
	4.

	 	Taxable year for which election is made:
	 	Calendar year 2008

	 
	 	 	 	 
	5.

	 	Restrictions to which property is subject:
	 	The shares are subject to time-based
vesting restrictions and other forfeiture
provisions as specified in a restricted
stock award agreement and are restricted
as to transfer in accordance with a
stockholders agreement. The shares will
generally be forfeited if employment
ceases prior to vesting.

	 
	 	 	 	 
	6.

	 	The fair market value of the property at
the time of its transfer to me (without
regard to restrictions) was:
	 	«Total_Value»

	 
	 	 	 	 
	7.

	 	Amount paid for the property:
	 	$ 0.00 

     A copy of this election has been furnished to the Company and to each other person, if
any, required to receive the election pursuant to Treas. Reg. § 1.83-2(d).

 

 

     Please acknowledge receipt of this Section 83(b) Election by signing or stamping the
enclosed copy of this letter and return it in the enclosed, self-addressed, stamped envelope.

	 	 	 	 	 
	 

	 	Very truly yours,	 	 
	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	«First_Name» «Last_Name»	 	 

cc: CC Media Holdings, Inc.

 

 

EXHIBIT E

California Supplement

     Pursuant to Section 12 of the Plan, this supplement has been adopted for purposes of
satisfying the requirements of Section 25102(o) of the California Corporations Code, to the
extent applicable. This supplement may be amended by the Administrator without the approval
of the Company, as necessary or desirable to comply with California law. Any Awards granted
under the Plan to a Participant who is a resident of the State of California on the date of
grant (a “California Participant”) shall be subject to the following additional limitations, terms and
conditions, to the extent applicable:

     1. Maximum Duration of Awards. No Award granted to a California Participant
will be for a term in excess of 10 years.

     2. Definition of Disability. For purposes of Section 6(a)(3) of the Plan, in the case
of a California Participant, “disability” shall mean “permanent and total disability” as
defined in Section 22(e)(3) of the Code.

     3. Additional Limitations on Timing of Awards. No Award granted to a
California Participant shall become vested or exercisable unless the Plan has been approved by the
Company’s stockholders by the later of (1) within 12 months before or after the date the Plan
was adopted by the Board or (2) prior to or within 12 months of the granting of an Award under
the Plan in California.

     4. Term. The Plan will be deemed to terminate with respect to California
Participants no later than 10 years from the earlier of the date the Plan was adopted by the
Board or the date the Plan was approved by the Company’s stockholders.

-18-exv10w32

Exhibit 10.32

CC MEDIA HOLDINGS, INC.

2008 ANNUAL INCENTIVE PLAN

1. Purposes. The purposes of this 2008 Annual Incentive Plan are to provide an incentive
to executive officers and other selected key executives of Clear Channel to contribute to the
growth, profitability and increased shareholder value of Clear Channel and to retain such
executives.

2. Definitions. For purposes of the Plan, the following terms shall be defined as set
forth below:

     (a) “Board” shall mean Clear Channel’s Board of Directors.

     (b) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time,
including regulations thereunder and successor provisions thereto.

     (c) “Committee” shall mean a committee composed of at least two members of the Board.

     (d) “Clear Channel” or “Company” shall mean CC Media Holdings, Inc. and any entity that
succeeds to all or substantially all of its business.

     (e) “Effective Date” shall mean January 1, 2008.

     (f) “Eligible Employee” shall mean each executive officer of Clear Channel, including those
employed by subsidiaries, and other key executives of Clear Channel and its subsidiaries selected
by the Committee.

     (g) “GAAP” shall mean U.S. Generally Accepted Accounting Principles.

     (h) “Participant” shall mean an Eligible Employee designated by the Committee to participate
in the Plan for a designated Performance Period.

     (i) “Performance Award” shall mean the right of a Participant to receive cash or other
property following the completion of a Performance Period based upon performance in respect of one
or more of the Performance Goals during such Performance Period, as specified in Section 5.

 

 

     (j) “Performance Goals” shall mean or may be expressed in terms of any of the following
business criteria: revenue growth, earnings before interest, taxes, depreciation and amortization
(“EBITDA”), EBITDA growth, operating income before depreciation and amortization and non-cash
compensation expense (“OIBDAN”), OIBDAN growth, funds from operations, funds from operations per
share and per share growth, cash available for distribution, cash available for distribution per
share and per share growth, operating income and operating income growth, net earnings, earnings
per share and per share growth, return on equity, return on assets, share price performance on an
absolute basis and relative to an index, improvements in Clear Channel’s attainment of expense
levels, implementing or completion of critical projects, or improvement in cash-flow (before or
after tax). A Performance Goal may be measured over a Performance Period on a periodic, annual,
cumulative or average basis and may be established on a corporate-wide basis or established with
respect to one or more operating units, divisions, subsidiaries, acquired businesses, minority
investments, partnerships or joint ventures. Unless otherwise determined by the Committee by no
later than the earlier of the date that is ninety (90) days after the commencement of the
Performance Period or the day prior to the date on which twenty-five percent (25%) of the
Performance Period has elapsed, the Performance Goals will be determined by not accounting for a
change in GAAP during a Performance Period.

     (k) “Performance Objective” shall mean the level or levels of performance required to be
attained with respect to specified Performance Goals in order that a Participant shall become
entitled to specified rights in connection with a Performance Award.

     (l) “Performance Period” shall mean the calendar year, or such other shorter or longer period
designated by the Committee, during which performance will be measured in order to determine a
Participant’s entitlement to receive payment of a Performance Award.

     (m) “Plan” shall mean this CC Media Holdings, Inc. 2008 Annual Incentive Plan, as amended from
time to time.

3. Administration.

     (a) Authority. The Plan shall be administered by the Committee. The Committee is
authorized, subject to the provisions of the Plan, in its sole discretion, from time to time to:
(i) select Participants; (ii) grant Performance Awards under the Plan; (iii) determine the type,
terms and conditions of, and all other matters relating to, Performance Awards; (iv) prescribe
Performance Award agreements (which need not be identical); (v) establish, modify or rescind such
rules and regulations as it deems necessary for the proper administration of the Plan; and (vi)
make such determinations and interpretations and to take such steps in connection with the Plan or
the Performance Awards granted thereunder as it deems necessary or advisable. All such actions by
the Committee under the Plan or with respect to the Performance Awards granted thereunder shall be
final and binding on all persons.

 

 

     (b) Manner of Exercise of Committee Authority. The Committee may delegate its
responsibility with respect to the administration of the Plan to one or more officers of Clear
Channel, to one or more members of the Committee or to one or more members of the Board;
provided , however , that the Committee may not delegate its responsibility (i) to
make Performance Awards to executive officers of Clear Channel and to certify the satisfaction of
Performance Objectives pursuant to Section 5(e). The Committee may also appoint agents to assist in
the day-to-day administration of the Plan and may delegate the authority to execute documents under
the Plan to one or more members of the Committee or to one or more officers of the Company.

     (c) Limitation of Liability. The Committee and each member thereof shall be entitled
to, in good faith, rely or act upon any report or other information furnished to him or her by any
officer or employee of Clear Channel, Clear Channel’s independent certified public accountants,
consultants or any other agent assisting in the administration of the Plan. Members of the
Committee and any officer or employee of Clear Channel acting at the direction or on behalf of the
Committee shall not be personally liable for any action or determination taken or made in good
faith with respect to the Plan, and shall, to the extent permitted by law, be fully indemnified and
protected by Clear Channel with respect to any such action or determination.

4. Types of Awards. Subject to the provisions of the Plan, the Committee has the
discretion to grant to Participants Performance Awards described in Section 5 in respect of any
Performance Period.

5. Performance Awards.

     (a) Form of Award. The Committee is authorized to grant Performance Awards pursuant
to this Section 5. A Performance Award shall represent the conditional right of the Participant to
receive cash or other property based upon achievement of one or more pre-established Performance
Objectives during a Performance Period, subject to the terms of this Section 5 and the other
applicable terms of the Plan. Performance Awards shall be subject to such conditions, including
deferral of settlement, risks of forfeiture, restrictions on transferability and other terms and
conditions as shall be specified by the Committee.

     (b) Performance Objectives. The Committee shall establish the Performance Objective
for each Performance Award, consisting of one or more business criteria permitted as Performance
Goals hereunder and one or more levels of performance with respect to each such criteria. In
addition, the Committee shall establish the amount or amounts payable or other rights that the
Participant will be entitled to as a Performance Award upon achievement of such levels of
performance. The Performance Objective shall be established by the Committee prior to, or
reasonably promptly following the inception of, a Performance Period.

 

 

     (c) Additional Provisions Applicable to Performance Awards. More than one
Performance Goal may be incorporated in a Performance Objective, in which case achievement with
respect to each Performance Goal may be assessed individually or in combination with each other.
The Committee may, in connection with the establishment of Performance Objectives for a Performance
Period, establish a matrix setting forth the relationship between performance on two or more
Performance Goals and the amount of the Performance Award payable for that Performance Period. The
level or levels of performance specified with respect to a Performance Goal may be established in
absolute terms, as objectives relative to performance in prior periods, as an objective compared to
the performance of one or more comparable companies or an index covering multiple companies, or
otherwise as the Committee may determine. Performance Objectives may differ for Performance Awards
granted to any one Participant or to different Participants.

     (d) Duration of the Performance Period. The Committee shall establish the duration
of each Performance Period at the time that it sets the Performance Objectives applicable to that
Performance Period. The Committee shall be authorized to permit overlapping or consecutive
Performance Periods.

     (e) Certification. Following the completion of each Performance Period, the
Committee shall certify in writing whether the Performance Objective and other material terms for
paying amounts in respect of each Performance Award related to that Performance Period have been
achieved or met. Unless the Committee determines otherwise, Performance Awards shall not be settled
until the Committee has made the certification specified under this Section 5(e).

     (f) Adjustment. The Committee is authorized at any time during or after a
Performance Period to reduce or eliminate the Performance Award of any Participant for any reason,
including, without limitation, changes in the position or duties of any Participant with Clear
Channel during or after a Performance Period, whether due to any termination of employment
(including death, disability, retirement, voluntary termination or termination with or without
cause) or otherwise. In addition, to the extent necessary to preserve the intended economic effects
of the Plan to Clear Channel and the Participants, the Committee shall adjust Performance
Objectives, the Performance Awards or both to take into account: (i) a change in corporate
capitalization, (ii) a corporate transaction, such as any merger of Clear Channel or any subsidiary
into another corporation, any consolidation of Clear Channel or any subsidiary into another
corporation, any separation of Clear Channel or any subsidiary (including a spin-off or the
distribution of stock or property of Clear Channel or any subsidiary), any reorganization of Clear
Channel or any subsidiary or a large, special and non-recurring dividend paid or distributed by
Clear Channel (whether or not such reorganization comes within the definition of Section 368 of the
Code), (iii) any partial or complete liquidation of Clear Channel or any subsidiary or (iv) a
change in accounting or other relevant rules or regulations (any adjustment pursuant to this Clause
(iv) shall be subject to the timing requirements of the last sentence of Section 2(j) of the Plan).

 

 

     (g) Timing of Payment. Except as provided below, any cash amounts payable in respect
of Performance Awards for a Performance Period will generally be paid as soon as practicable
following the determination in respect thereof made pursuant to Section 5(e), and any non-cash
amounts or any other rights that the Participant is entitled to with respect to a Performance Award
for a Performance Period will be paid in accordance with the terms of the Performance Award.

     (h) Deferral of Payments. Subject to such terms, conditions and administrative
guidelines as the Committee shall specify from time to time, a Participant shall have the right to
elect to defer receipt of part or all of any payment due with respect to a Performance Award.

     (i) Maximum Amount Payable Per Participant Under This Section 5. With respect to
Performance Awards to be settled in cash or property, a Participant shall not be granted
Performance Awards for all of the Performance Periods commencing in a calendar year that permit the
Participant in the aggregate to earn a cash payment or payment in other property, in excess of
$15,000,000.

6. General Provisions.

     (a) Termination of Employment. In the event a Participant terminates employment for
any reason during a Performance Period or prior to the Performance Award payment, he or she (or his
or her beneficiary, in the case of death) shall not be entitled to receive any Performance Award
for such Performance Period unless the Committee, in its sole and absolute discretion, elects to
pay a Performance Award to such Participant.

     (b) Death of the Participant. Subject to Section 6(a), in the event of the death of
a Participant, any payments hereunder due to such Participant shall be paid to his or her
beneficiary as designated in writing to the Committee or, failing such designation, to his or her
estate. No beneficiary designation shall be effective unless it is in writing and received by the
Committee prior to the date of death of the Participant.

     (c) Taxes. Clear Channel is authorized to withhold from any Performance Award
granted, any payment relating to a Performance Award under the Plan, or any payroll or other
payment to a Participant, amounts of withholding and other taxes due in connection with any
transaction involving a Performance Award, and to take such other action as the Committee may deem
advisable to enable Clear Channel and Participants to satisfy obligations for the payment of
withholding taxes and other tax obligations relating to any Performance Award. This authority shall
include authority for Clear Channel to withhold or receive other property and to make cash payments
in respect thereof in satisfaction of a Participant’s tax obligations, either on a mandatory or
elective basis in the discretion of the Committee.

 

 

     (d) Limitations on Rights Conferred under Plan and Beneficiaries. Neither status as
a Participant nor receipt or completion of a deferral election form shall be construed as a
commitment that any Performance Award will become payable under the Plan. Nothing contained in the
Plan or in any documents related to the Plan or to any Award shall confer upon any Eligible
Employee or Participant any right to continue as an Eligible Employee, Participant or in the employ
of Clear Channel or constitute any contract or agreement of employment, or interfere in any way
with the right of Clear Channel to reduce such person’s compensation, to change the position held
by such person or to terminate the employment of such Eligible Employee or Participant, with or
without cause, but nothing contained in this Plan or any document related thereto shall affect any
other contractual right of any Eligible Employee or Participant. No benefit payable under, or
interest in, this Plan shall be transferable by a Participant except by will or the laws of descent
and distribution or otherwise be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge.

     (e) Changes to the Plan and Awards. Notwithstanding anything herein to the contrary,
the Board, or a committee designated by the Board, may, at any time, terminate or, from time to
time, amend, modify or suspend the Plan and the terms and provisions of any Performance Award
theretofore granted to any Participant which has not been settled (either by payment or deferral).
No Performance Award may be granted during any suspension of the Plan or after its termination.

     (f) Unfunded Status of Awards; Creation of Trusts. The Plan is intended to
constitute an “unfunded” plan for incentive and deferred compensation. With respect to any amounts
payable to a Participant pursuant to a Performance Award, nothing contained in the Plan (or in any
documents related thereto), nor the creation or adoption of the Plan, the grant of any Performance
Award, or the taking of any other action pursuant to the Plan shall give any such Participant any
rights that are greater than those of a general creditor of Clear Channel; provided that the
Committee may authorize the creation of trusts and deposit therein cash or other property or make
other arrangements, to meet Clear Channel’s obligations under the Plan. Such trusts or other
arrangements shall be consistent with the “unfunded” status of the Plan unless the Committee
otherwise determines with the consent of each affected Participant. The trustee of such trusts may
be authorized to dispose of trust assets and reinvest the proceeds in alternative investments,
subject to such terms and conditions as the Committee may specify in accordance with applicable
law.

     (g) Non-Exclusivity of the Plan. Neither the adoption of the Plan by the Board (or a
committee designated by the Board) shall be construed as creating any limitations on the power of
the Board to adopt such other incentive arrangements as it may deem necessary.

     (h) Governing Law. The validity, construction, and effect of the Plan, any rules and
regulations relating to the Plan, and any Performance Award shall be determined in accordance with
the laws of the State of Delaware, without giving effect to principles of conflicts of laws, and
applicable Federal law.

 

 

EXHIBIT C

Compensation Arrangements, Performance Objectives and Performance Awards

Participants: Mark P. Mays and Randall T. Mays

			
	Compensation Arrangement:	 	with respect to Mark P. Mays, $6,625,000 in cash, if the
Company’s 2008 Core Assets OIBDAN1 (which excludes
results from the Television division) in the 2008 fiscal year
is equal to or greater than $1,903,876,000; with respect to
Randall T Mays, $6,625,000 in cash, if the Company’s
2008 Core Assets OIBDAN1 (which excludes results
from
the Television division) in the 2008 fiscal year is equal to
or greater than $1,903,876,000.

 

			
	1	 	As used herein, “OIBDAN” means operating income as defined by GAAP before
depreciation and amortization
and non-cash compensation expense.

C-1

 

EXHIBIT D

Compensation Arrangements, Performance Objectives and Performance Awards

Participant: John Hogan

			
	Compensation Arrangement:	 	the amounts of (i) salary and (ii) bonus shown in the
attached table corresponding to (A) the increase in
OIBDAN2 in the Company’s Radio Division for the
2008
fiscal year over the OIBDAN in the Company’s Radio
Division for the 2007 fiscal year plus (C)
Management by
Objective opportunities.

 

			
	2	 	As used herein, “OIBDAN” means operating income as defined by GAAP before
depreciation and amortization
and non-cash compensation expense.

D-1

 

John Hogan — Proposed 2008 Compensation Package

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Cash Comp
	Base Salary:
	 	 	 	 	 	 	 	 	 	 	 	 
	2003
	 	 	535,000	 	 	 	 	 	 	 	550,000	 
	2004
	 	 	550,000	 	 	 	2.8	%	 	 	600,000	 
	2005
	 	 	600,000	 	 	 	9.1	%	 	 	600,000	 
	2006
	 	 	625,000	 	 	 	4.2	%	 	 	1,600,000	 
	2007
	 	 	750,000	 	 	 	20.0	%	 	 	907,500	 
	2008
	 	 	775,000	 	 	 	3.3	%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bonus:
	 	 	 	 	 	 	 	 	 	 	 	 
	2003
	 	 	15,000	 	 	 	 	 	 	 	 	 
	2004
	 	 	50,000	 	 	 	 	 	 	 	 	 
	2005
	 	 	 	 	 	 	 	 	 	 	 	 
	2006
	 	 	975,000	 	 	 	 	 	 	 	 	 
	2007
	 	 	157,500	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Target 2% OIBDAN Growth	 	 	 	 	 	 	600,000	 
	Target Bonus
	 	 	1,000,000	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	80%	 	 	 	 	6.67%	 	 	 	 	 	 	6.67%	 	 	 	 	6.67%	 	 	 	 	 
	 	 	OIBDAN	 	 	 	 	 	 	 	 	 	MBO#1	 	 	 	 	 	 	 	 	 	MBO #2	 	 	 	 	 	 	 	 	 	MBO #3	 	 	 	 	 	 	 	 
	OIBDAN	 	Bonus	 	OIBDAN	 	 	 	 	 	Bonus	 	 	 	 	 	 	 	 	 	Bonus	 	 	 	 	 	 	 	 	 	Bonus	 	 	 	 	 	Total Bonus	 	% of Bonus
	Growth Rate	 	Target	 	Bonus	 	 	 	 	 	Amount	 	Bonus	 	 	 	 	 	Amount	 	Bonus	 	 	 	 	 	Amount	 	Bonus	 	Opportunity	 	Opportunity
	0.2%
	 	 	8.00	%	 	 	80,000	 	 	 	 	 	 	 	0.67	%	 	 	6,667	 	 	 	 	 	 	 	0.67	%	 	 	6,667	 	 	 	 	 	 	 	0.67	%	 	 	6,667	 	 	 	100,000	 	 	 	10.0	%
	0.4%
	 	 	16.00	%	 	 	160,000	 	 	 	 	 	 	 	1.33	%	 	 	13,333	 	 	 	 	 	 	 	1.33	%	 	 	13,333	 	 	 	 	 	 	 	1.33	%	 	 	13,333	 	 	 	200,000	 	 	 	20.0	%
	0.6%
	 	 	24.00	%	 	 	240,000	 	 	 	 	 	 	 	2.00	%	 	 	20,000	 	 	 	 	 	 	 	2.00	%	 	 	20,000	 	 	 	 	 	 	 	2.00	%	 	 	20,000	 	 	 	300,000	 	 	 	30.0	%
	0.8%
	 	 	32.00	%	 	 	320,000	 	 	 	 	 	 	 	2.67	%	 	 	26,667	 	 	 	 	 	 	 	2.67	%	 	 	26,667	 	 	 	 	 	 	 	2.67	%	 	 	26,667	 	 	 	400,000	 	 	 	40.0	%
	1.0%
	 	 	40.00	%	 	 	400,000	 	 	 	 	 	 	 	3.33	%	 	 	33,333	 	 	 	 	 	 	 	3.33	%	 	 	33,333	 	 	 	 	 	 	 	3.33	%	 	 	33,333	 	 	 	500,000	 	 	 	50.0	%
	1.2%
	 	 	48.00	%	 	 	480,000	 	 	 	 	 	 	 	4.00	%	 	 	40,000	 	 	 	 	 	 	 	4.00	%	 	 	40,000	 	 	 	 	 	 	 	4.00	%	 	 	40,000	 	 	 	600,000	 	 	 	60.0	%
	1.4%
	 	 	56.00	%	 	 	560,000	 	 	 	 	 	 	 	4.67	%	 	 	46,667	 	 	 	 	 	 	 	4.67	%	 	 	46,667	 	 	 	 	 	 	 	4.67	%	 	 	46,667	 	 	 	700,000	 	 	 	70.0	%
	1.6%
	 	 	64.00	%	 	 	640,000	 	 	 	 	 	 	 	5.33	%	 	 	53,333	 	 	 	 	 	 	 	5.33	%	 	 	53,333	 	 	 	 	 	 	 	5.33	%	 	 	53,333	 	 	 	800,000	 	 	 	80.0	%
	1.8%
	 	 	72.00	%	 	 	720,000	 	 	 	 	 	 	 	6.00	%	 	 	60,000	 	 	 	 	 	 	 	6.00	%	 	 	60,000	 	 	 	 	 	 	 	6.00	%	 	 	60,000	 	 	 	900,000	 	 	 	90.0	%
	2.0%
	 	 	80.00	%	 	 	800,000	 	 	 	66,667	 	 	 	6.67	%	 	 	66,667	 	 	 	66,667	 	 	 	6.67	%	 	 	66,667	 	 	 	66,667	 	 	 	6.67	%	 	 	66,667	 	 	 	1,000,000	 	 	 	100.0	%
	2.2%
	 	 	92.00	%	 	 	920,000	 	 	 	 	 	 	 	7.67	%	 	 	76,667	 	 	 	 	 	 	 	7.67	%	 	 	76,667	 	 	 	 	 	 	 	7.67	%	 	 	76,667	 	 	 	1,150,000	 	 	 	115.0	%
	2.4%
	 	 	104.00	%	 	 	1,040,000	 	 	 	 	 	 	 	8.67	%	 	 	86,667	 	 	 	 	 	 	 	8.67	%	 	 	86,667	 	 	 	 	 	 	 	8.67	%	 	 	86,667	 	 	 	1,300,000	 	 	 	130.0	%
	2.6%
	 	 	116.00	%	 	 	1,160,000	 	 	 	 	 	 	 	9.67	%	 	 	96,667	 	 	 	 	 	 	 	9.67	%	 	 	96,667	 	 	 	 	 	 	 	9.67	%	 	 	96,667	 	 	 	1,450,000	 	 	 	145.0	%
	2.8%
	 	 	128.00	%	 	 	1,280,000	 	 	 	 	 	 	 	10.67	%	 	 	106,667	 	 	 	 	 	 	 	10.67	%	 	 	106,667	 	 	 	 	 	 	 	10.67	%	 	 	106,667	 	 	 	1,600,000	 	 	 	160.0	%
	3.0%
	 	 	140.00	%	 	 	1,400,000	 	 	 	 	 	 	 	11.67	%	 	 	116,667	 	 	 	 	 	 	 	11.67	%	 	 	116,667	 	 	 	 	 	 	 	11.67	%	 	 	116,667	 	 	 	1,750,000	 	 	 	175.0	%
	3.2%
	 	 	152.00	%	 	 	1,520,000	 	 	 	 	 	 	 	12.67	%	 	 	126,667	 	 	 	 	 	 	 	12.67	%	 	 	126,667	 	 	 	 	 	 	 	12.67	%	 	 	126,667	 	 	 	1,900,000	 	 	 	190.0	%
	3.4%
	 	 	164.00	%	 	 	1,640,000	 	 	 	 	 	 	 	13.67	%	 	 	136,667	 	 	 	 	 	 	 	13.67	%	 	 	136,667	 	 	 	 	 	 	 	13.67	%	 	 	136,667	 	 	 	2,050,000	 	 	 	205.0	%
	3.6%
	 	 	176.00	%	 	 	1,760,000	 	 	 	 	 	 	 	14.67	%	 	 	146,667	 	 	 	 	 	 	 	14.67	%	 	 	146,667	 	 	 	 	 	 	 	14.67	%	 	 	146,667	 	 	 	2,200,000	 	 	 	220.0	%
	3.8%
	 	 	188.00	%	 	 	1,880,000	 	 	 	 	 	 	 	15.67	%	 	 	156,667	 	 	 	 	 	 	 	15.67	%	 	 	156,667	 	 	 	 	 	 	 	15.67	%	 	 	156,667	 	 	 	2,350,000	 	 	 	235.0	%
	4.0%
	 	 	200.00	%	 	 	2,000,000	 	 	 	 	 	 	 	16.67	%	 	 	166,667	 	 	 	 	 	 	 	16.67	%	 	 	166,667	 	 	 	 	 	 	 	16.67	%	 	 	166,667	 	 	 	2,500,000	 	 	 	250.0	%

 

			
	20% of total bonus opportunity will be based on success In achieving the following MBO goals:
	 
	 	 	MBO objective #1: Implement blueprinting process
	 
	 	 	MBO Objective #2: Improve CCU Radio ratings
	 
	 	 	MBO Objective #3: Improve CCU Radio revenues
	 
	1.	 	Growth (over prior year ) needed in OIBDAN to reach target bonus is 2.0%.
	 
	2.	 	Performance on all 2008 MBO objectives will be based on the judgement of the Board of Directors.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stock Options/Restricted Stock:	 	 	 	 	 	 	 	 	 	 	 	 
	2003 (SO)
	 	 	85,000	 	 	 	 	 	 	 	 	 
	2004 (SO)
	 	 	85,000	 	 	 	50,000	 (a) 	 	 	 	 
	2005 (SO)
	 	 	100,000	 	 	 	 	 	 	 	 	 
	2006 (RS)
	 	 	25,000	 	 	 	50,000	 (b)	 	 	 	 
	2007 (RS)
	 	 	30,000	 	 	 	 	 	 	 	 	 
	2008 (SO)
	 	 	204,506	 (est)	 	 	 	 	 	 

 

			
	(a)	 	one time grant to put under contract
	 
	(b)	 	one time Special Grant

	 	 	 	 	 	 	 	 	 
	2008 Total Compensation Package	 	 	 	 	 	 	 	 
	Salary
	 	 	775,000	 	 	 	 	 
	Bonus Target
	 	 	1,000,000	 	 	 	 	 
	Stock Options
	 	 	2,104,365	 (est)	 	 
	 
	 	 	 	 	 	 	 	 
	Total
	 	 	3,879,365	 (est)	 	 

	 	 	 	 	 	 	 	 	 
	Value of proposed stock option grant (assumes 2.5X return achieved over 5 years)
	 	$	2,104,365	 	 	(204,506 options at $34.30)
	 
	 	 	 	 	 	 	 	 
	Total Package Value at Target =
	 	$	3,879,365	 	 	 	 	 

 

 

EXHIBIT
E-1

2007 Compensation Arrangements, Performance Objectives and Performance Awards

See attached

E-1

 

Bob Cohen — 2007 Compensation Package

	 	 	 	 	 	 	 	 	 	 	 
	Base Salary:
	 	 	 	 	 	 	 	 	 
	 	2003
	 	 	 	210,000	 	 	 	 	 
	 	2004
	 	 	 	225,000	 	 	 	7.1	%
	 	2005
	 	 	 	235,000	 	 	 	4.4	%
	 	2006
	 	 	 	275,000	 	 	 	17.0	%
	 	2007
	 	 	 	325,000	 	 	 	18.2	%
	 	 
	 	 	 	 	 	 	 	 	 
	Bonus:
	 	 	 	 	 	 	 	 	 
	 	2003
	 	 	 	205,000	 	 	 	 	 
	 	2004
	 	 	 	150,000	 	 	 	 	 
	 	2005
	 	 	 	210,000	 	 	 	 	 
	 	2006
	 	 	 	200,000	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	Target 2007 Bonus Is 185,000	 	 	 	 	 

Actual 2007 OIBN: -3.6%

Total Bonus for 2007 Performance: $20,000

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	OIBN	 	 	% of Bonus	 	 	Bonus	 	 	Bonus	 
	 	Growth Rate	 	 	Opportunity	 	 	Target	 	 	Payment	 
	 	 	1
	%	 	 	10.0	%	 	 	10.00	%	 	 	18,500	 
	 	 	2
	%	 	 	20.0	%	 	 	20.00	%	 	 	37,000	 
	 	 	3
	%	 	 	30.0	%	 	 	30.00	%	 	 	55,500	 
	 	 	4
	%	 	 	40.0	%	 	 	40.00	%	 	 	74,000	 
	 	 	5
	%	 	 	50.0	%	 	 	50.00	%	 	 	92,500	 
	 	 	6
	%	 	 	60.0	%	 	 	60.00	%	 	 	111,000	 
	 	 	7
	%	 	 	70.0	%	 	 	70.00	%	 	 	129,500	 
	 	 	8
	%	 	 	80.0	%	 	 	80.00	%	 	 	148,000	 
	 	 	9
	%	 	 	90.0	%	 	 	90.00	%	 	 	166,500	 
	 	 	10
	%	 	 	100.0	%	 	 	100.00	%	 	 	185,000	 
	 	 	11
	%	 	 	110.0	%	 	 	110.00	%	 	 	203,500	 
	 	 	12
	%	 	 	120.0	%	 	 	120.00	%	 	 	222,000	 
	 	 	13
	%	 	 	130.0	%	 	 	130.00	%	 	 	240,500	 
	 	 	14
	%	 	 	140.0	%	 	 	140.00	%	 	 	259,000	 
	 	 	15
	%	 	 	150.0	%	 	 	150.00	%	 	 	277,500	 
	 	 	16
	%	 	 	160.0	%	 	 	160.00	%	 	 	296,000	 
	 	 	17
	% 	 	 	170.0	%	 	 	170.00	%	 	 	314,500	 
	 	 	18
	%	 	 	180.0	%	 	 	180.00	%	 	 	333,000	 
	 	 	19
	%	 	 	190.0	%	 	 	190.00	%	 	 	351,500	 
	 	 	20
	%	 	 	200.0	%	 	 	200.00	%	 	 	370,000	 
	 	 	21
	%	 	 	210.0	%	 	 	210.00	%	 	 	388,500	 
	 	 	22
	%	 	 	220.0	%	 	 	220.00	%	 	 	407,000	 
	 	 	23
	%	 	 	230.0	%	 	 	230.00	%	 	 	425,500	 
	 	 	24
	%	 	 	240.0	%	 	 	240.00	%	 	 	444,000	 
	 	 	25
	%	 	 	250.0	%	 	 	250.00	%	 	 	462,500	 

Growth
(over prior year) needed in OIBN to reach target bonus is 10%. Bonus is based upon Division only.

Bonus is scaled so better performance gets bigger bonus, lower performance gets smaller bonus. An

additional bonus of $5,000 each (up to $20,000 total) will be paid for attainment of the following MBO goals:

	1.	 	Improve operational processes in Mexico: management skills, sales proficiency, and business systems
	 
	2.	 	Develop online content in Australia and New Zealand
	 
	3.	 	Australia — Reverse decline of revenue share
	 
	4.	 	New Zealand — Defend against CanWest Networks in Auchland, and improve Christ Church

	 	 	 	 	 	 	 	 	 	 	 
	Stock Options:
	 	 	 	 	 	 	 	 	 
	 	2003
	 	 	 	25,000	 	 	 	 	 
	 	2004
	 	 	 	25,000	 	 	 	 	 
	 	2005
	 	 	 	25,000	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	Restricted Stock:
	 	 	 	 	 	 	 	 	 
	 	2006
	 	 	 	6,250	 	 	 	12,500	 (a)
	 	2007
	 	 	 	8,500	 	 	 	 	 

 

(a) One Time Special Realignment Grant

	 	 	 	 	 
	2007 Total Compensation
Package
	 
	Salary:
	 	$	325,000	 
	Bonus:
	 	$	185,000	 
	 
	 	 	 	 
	Restricted Stock:
	 	$	314,500	 
	 
	 	 	 	 
	Total:
	 	$	824,500	 

Value of 2007 restricted stock grant at $37.00 = $314,500

 

EXHIBIT E-2

2008 Compensation Arrangements, Performance Objectives and Performance Awards

Participant: Bob Cohen

			
	Compensation Arrangement:	 	the amounts of (i) salary and (ii) bonus shown in the
attached table corresponding to (A) the increase in
OIBDAN3 in the Company’s International Radio
Division
for the 2008 fiscal year over the OIBDAN in the
Company’s International Radio Division for the 2007 fiscal
year and (B) Management by Objective opportunities.

 

			
	3	 	As used herein, “OIBDAN” means operating income as defined by GAAP before
depreciation and amortization
and non-cash compensation expense.

E-2

 

 

Bob Cohen — Proposed 2008 Compensation Package

	 	 	 	 	 	 	 	 	 	 	 
	Base Salary:
	 	 	 	 	 	 	 	 	 
	 	2003
	 	 	 	210,000	 	 	 	 	 
	 	2004
	 	 	 	225,000	 	 	 	7.1	%
	 	2005
	 	 	 	235,000	 	 	 	4.4	%
	 	2006
	 	 	 	275,000	 	 	 	17.0	%
	 	2007
	 	 	 	325,000	 	 	 	18.2	%
	 	2008
	 	 	 	340,000	 	 	 	4.6	%
	Bonus:
	 	 	 	 	 	 	 	 	 
	 	2003
	 	 	 	205,000	 	 	 	 	 
	 	2004
	 	 	 	150,000	 	 	 	 	 
	 	2005
	 	 	 	210,000	 	 	 	 	 
	 	2006
	 	 	 	200,000	 	 	 	 	 
	 	2007
	 	 	 	20,000	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	Target 2008 Bonus Is: $185,000	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	OIBDAN	 	 	% of Bonus	 	 	Bonus	 
	 	 	Growth Rate	 	 	Opportunity	 	 	Payment	 
	 	 	 	0.5
	% 	 	 	10.0	%	 	$	18,500	 
	 	 	 	1.0
	% 	 	 	20.0	%	 	$	37,000	 
	 	 	 	1.5
	% 	 	 	30.0	%	 	$	55,500	 
	 	 	 	2.0
	% 	 	 	40.0	%	 	$	74,000	 
	 	 	 	2.5
	% 	 	 	50.0	%	 	$	92,500	 
	 	 	 	3.0
	% 	 	 	60.0	%	 	$	111,000	 
	 	 	 	3.5
	% 	 	 	70.0	%	 	$	129,500	 
	 	 	 	4.0
	% 	 	 	80.0	%	 	$	148,000	 
	 	 	 	4.5
	% 	 	 	90.0	%	 	$	166,500	 
	 	 	 	5.0
	% 	 	 	100.0	%	 	$	185,000	 
	 	 	 	5.5
	% 	 	 	110.0	%	 	$	203,500	 
	 	 	 	6.0
	% 	 	 	120.0	%	 	$	222,000	 
	 	 	 	6.5
	% 	 	 	130.0	%	 	$	240,500	 
	 	 	 	7.0
	% 	 	 	140.0	%	 	$	259,000	 
	 	 	 	7.5
	% 	 	 	150.0	%	 	$	277,500	 
	 	 	 	8.0
	% 	 	 	160.0	%	 	$	296,000	 
	 	 	 	8.5
	% 	 	 	170.0	%	 	$	314,500	 
	 	 	 	9.0
	% 	 	 	180.0	%	 	$	333,000	 
	 	 	 	9.5
	% 	 	 	190.0	%	 	$	351,500	 
	 	 	 	10.0
	% 	 	 	200.0	%	 	$	370,000	 
	 	 	 	10.5
	% 	 	 	210.0	%	 	$	388,500	 
	 	 	 	11.0
	% 	 	 	220.0	%	 	$	407,000	 
	 	 	 	11.5
	% 	 	 	230.0	%	 	$	425,500	 
	 	 	 	12.0
	% 	 	 	240.0	%	 	$	444,000	 
	 	 	 	12.5
	% 	 	 	250.0	%	 	$	462,500	 

Growth (over prior year) needed in OIBDAN to reach target bonus is 5%. Bonus is based upon Division only.
Bonus is scaled so better performance gets bigger bonus, lower performance gets smaller bonus. An
additional bonus of $5,000 each (up to $20,000 total) will be paid for attainment of the following MBO goals:

	1.	 	Improve operational processes in Mexico: management skills, sales proficiency, and business systems
	 
	2.	 	Develop online content in Australia and New Zealand
	 
	3.	 	Australia — Reverse decline of revenue share
	 
	4.	 	New Zealand — Defend against CanWest Networks in Auchland, and improve Christ Church

	 	 	 	 	 	 	 	 	 
	Stock Options:
	 	 	 	 	 	 	 	 
	2003
	 	 	25,000	 	 	 	 	 
	2004
	 	 	25,000	 	 	 	 	 
	2005
	 	 	25,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Restricted Stock:
	 	 	 	 	 	 	 	 
	2006
	 	 	6,250	 	 	 	12,500 	 (a)
	2007
	 	 	8,500	 	 	 	 	 

 

			
	(a)	 	One Time Special Realignment Grant

	 	 	 	 	 
	2008 Total Compensation Package	 	 	 	 
	 
	Salary
	 	$	340,000	 
	Bonus
	 	$	185,000	 
	 
	 	 	 	 
	LTI phantom stock
	 	TBD	 
	 
	 	 	 	 
	Cash Comp Target
	 	$	525,000	 

 

 

EXHIBIT E-3

Retention and Price Bonus Agreement

See attached

E-3

 

 

Retention and Price Bonus Agreement — Bob Cohen

February15, 2008

Mr. Bob Cohen

Dear Bob:

This Agreement establishes some additional terms of your continued employment with
Clear Channel Communications, Inc. (CC), pending the closing of the proposed
acquisition of the Clear Channel Communications, Inc. International Radio Division by a
third party(s) who has not yet been identified. We will refer to the date that the
acquisition is closed as the closing date.

1. Duration

The term of this Agreement will begin on the date this agreement is signed and end on
the closing date. If the Mexico and Australia/New Zealand assets are not sold together,
the term of this Agreement will end on the later closing date. Unless extended through
the consent of both parties, this Agreement will expire if the acquisition(s) have not been
announced by December 31, 2012.

2. Title

You will be employed as President of Clear Channel International Radio, devoting your
best professional efforts, time and skill to the performance of the duties originally
undertaken under your current job description. You will continue to report to Mark Mays,
the CEO of Clear Channel Communications.

3. Compensation

Your annual base salary will increase to $340,000 effective February 1, 2008 effective
January 1,2008 and you will be paid in accordance with CC’s normal payroll procedures.
Your 2008 bonus opportunities are shown on the attached spreadsheet, and you will be
eligible for annual salary reviews in accordance with CC’s normal pay review
procedures.

4. Retention Bonus

You will be eligible for a retention bonus of one half of your current base salary, subject
to the terms described below. That amount will be paid to you only if you are still
employed by CC on the closing date and if you agree to and sign a general release
prepared by the Company. It will be paid to you through the next reasonable payroll
cycle following the closing date.

 

 

5. Termination

No specific term of employment is intended by the terms outlined above, by inference or
otherwise. Your employment is and continues to be at-will. If CC terminates your
employment other than for cause before December 31,2009, CC will be obligated to pay
you the retention bonus. However, no retention bonus will be payable if you are
terminated for cause. If for any reason you resign from CC at any point before the
closing date, no bonus will be payable.

For purposes of this Agreement, “cause” means:

Your willful and continued failure to perform substantially your duties with CC.

Your willful engagement in illegal conduct or gross misconduct.

6. Price Bonus

In addition to the Retention Bonus described above, you are eligible for the following
Price Bonuses. If the net price received by CC for the sale of the Mexico assets exceeds
$80,000,000 you will receive a bonus equal to 2.0% of the excess amount. For example,
if CC receives a net of $85,000,000 you will earn $5,000,000 X .02, or $100,000.

Additionally, if the net price received by CC for the sale of the Australia/New Zealand
assets exceeds $350,000,000 you will receive a bonus equal to 1.0% of the excess
amount.

7. Severance

If you are involuntarily terminated without cause in connection with the sale of the
International Radio Division and are not offered comparable employment with the
successor entity(s), you will be entitled to receive twice the amount of your current
annual base salary plus twice the amount of the largest annual bonus you earned for your
performance in any year beginning with the 2006 performance year. For purposes of this
Agreement, “comparable employment” means a position where there is no reduction in
base pay or bonus opportunity as determined immediately prior to the termination date,
and which does not require the relocation of your primary office to a location which is
more than 30 miles from your present location without your consent.

Additionally, all of your unvested stock options and restricted stock awards will be
immediately and fully vested and exercisable (to the extent applicable) if you are
involuntarily terminated without cause as a result of the sale of the International Radio
Division. Any severance payment is conditional upon your execution of a general release

 

 

of claims in favor of CC, and will be subject to the terms of any future document which
may be adopted by CC to describe the terms and conditions of severances payable as a
result of the Merger and/or Permitted Divestitures.

8. Governing Law

The validity, interpretation and performance of this Agreement shall, in all respects, be
governed by the relevant laws of the state of Texas.

9. Modification

No provision of this Agreement may be modified, altered or amended, except by
collective agreement between CC and you in writing.

10. Arbitration

By signing this Agreement, you agree that any claims or disputes covered by this
Agreement or resulting from your employment during the term of the Agreement must be
submitted to binding arbitration in accordance with the terms of the Clear Channel
Arbitration Policy.

If you accept the terms of this Agreement, please sign below in the space provided.

	 	 	 
	Date:

	 	Employee (sign):
	 
	 	 
	 

	 	Bob Cohen, President — Clear Channel International Radio
	 
	 	 
	 
	 	 
	Date:

	 	Employer (sign):
	 
	 	 
	 

	 	Mark Mays, CEO — Clear Channel Communications

 

 

EXHIBIT
F-1

2008 Compensation Arrangements, Performance Objectives and Performance Awards

Participant: Craig Millar

			
	Compensation Arrangement:	 	the amounts of (i) salary and (ii) bonus shown in the
attached table corresponding to (A) the increase in
OIBDAN4 in the Company’s Television Division for
the
2008 fiscal year over the OIBDAN in the Company’s
Television Division for the 2007 fiscal year and (B)
Management by Objective opportunities.

 

			
	4	 	As used herein, “OIBDAN” means operating income as defined by GAAP before
depreciation and amortization
and non-cash compensation expense.

F-l

 

Craig Millar — Proposed 2008 Compensation Package

	 	 	 	 	 	 	 	 	 	 	 
	Base Salary:	 	 	 	 	 	 	 	 	 
	 
	2003	 	 	 	170,000	 	 	 	 	 
	 
	2004	 	 	 	175,000	 	 	 	2.9	%
	 
	2005	 	 	 	220,000	 	 	 	25.7	%
	 
	2006	 	 	 	240,000	 	 	 	9.1	%
	 
	2007	 	 	 	275,000	 	 	 	14.6	%
	 
	2008	 	 	 	350,000	 	 	 	27.3	%
	 
	 	 	 	 	 	 	 	 	 	 
	Bonus:
	 	 	 	 	 	 	 	 	 
	 
	2003	 	 	 	30,000	 	 	 	 	 
	 
	2004	 	 	 	40,000	 	 	 	 	 
	 
	2005	 	 	 	52,686	 	 	 	 	 
	 
	2006	 	 	 	101,996	 	 	 	 	 
	 
	2007	 	 	 	206,400	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Target 2008 Bonus Is: $200,000	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	OIBDAN	 	 	% of Bonus	 	 	Bonus	 
	 	 	Growth Rate	 	 	Opportunity	 	 	Payment	 
	 
	 	 	0.25	%	 	 	10.0	%	 	$	20,000	 
	 
	 	 	1.00	%	 	 	20.0	%	 	$	40,000	 
	 
	 	 	1.75	%	 	 	30.0	%	 	$	60,000	 
	 
	 	 	2.50	%	 	 	40.0	%	 	$	80,000	 
	 
	 	 	3.25	%	 	 	50.0	%	 	$	100,000	 
	 
	 	 	4.00	%	 	 	60.0	%	 	$	120,000	 
	 
	 	 	4.75	%	 	 	70.0	%	 	$	140,000	 
	 
	 	 	5.50	%	 	 	80.0	%	 	$	160,000	 
	 
	 	 	6.25	%	 	 	90.0	%	 	$	180,000	 
	 
	 	 	7.00	%	 	 	100.0	%	 	$	200,000	 
	 
	 	 	7.75	%	 	 	110.0	%	 	$	220,000	 
	 
	 	 	8.50	%	 	 	120.0	%	 	$	240,000	 
	 
	 	 	9.25	%	 	 	130.0	%	 	$	260,000	 
	 
	 	 	10.00	%	 	 	140.0	%	 	$	280,000	 
	 
	 	 	10.75	%	 	 	150.0	%	 	$	300,000	 
	 
	 	 	11.50	%	 	 	160.0	%	 	$	320,000	 
	 
	 	 	12.25	%	 	 	170.0	%	 	$	340,000	 
	 
	 	 	13.00	%	 	 	180.0	%	 	$	360,000	 
	 
	 	 	13.75	%	 	 	190.0	%	 	$	380,000	 
	 
	 	 	14.50	%	 	 	200.0	%	 	$	400,000	 
	 
	 	 	15.25	%	 	 	210.0	%	 	$	420,000	 
	 
	 	 	16.00	%	 	 	220.0	%	 	$	440,000	 
	 
	 	 	16.75	%	 	 	230.0	%	 	$	460,000	 
	 
	 	 	17.50	%	 	 	240.0	%	 	$	480,000	 
	 
	 	 	18.25	%	 	 	250.0	%	 	$	500,000	 

Growth (over prior year) needed in OIBDAN to reach target bonus is 5%. Bonus is based upon
Division only. Bonus is scaled so better performance gets bigger bonus, lower performance gets
smaller bonus. An additional bonus of $6,667 each (up to $20,000 total) will be paid for attainment
of the following MBO goals:

1 Recruitment and development of key management positions

2 Maintain and improve TV division morale

3 Increase TV division revenue growth

	 	 	 	 	 
	2008 Total Compensation Package	 
	Salary:
	 	$	350,000	 
	Bonus:
	 	$	200,000	 
	 
	 	 	 	 
	LTI phantom stock:
	 	TBD	 
	 
	 	 	 	 
	Cash Comp Target:
	 	$	550,000	 

 

EXHIBIT F-2

Retention and Price Bonus Agreement

See attached

F-2

 

Retention and Price Bonus Agreement — Craig Millar

February 15, 2008

Mr. Craig Millar

Dear Craig:

This Retention Bonus Agreement establishes some additional terms of your continued
employment with Clear Channel Communications, Inc. (CC), pending the closing of the
proposed acquisition of the Clear Channel Communications, Inc. Television Division by
a third party who has not yet been identified. We will refer to the date that the
acquisition is closed as the closing date.

1. Duration

The term of this Agreement will begin on the date this agreement is signed and end on
the closing date. This Agreement will expire if no acquisition has been announced by
December 31, 2012.

2. Title

You will be employed as interim President/CEO of Clear Channel Television, devoting
your best professional efforts,  time and skill to the performance of the duties
originally undertaken under your current job description. You will continue to report to Mark Mays,
the CEO of Clear Channel Communications.

3. Compensation

Your annual base salary will increase to $300,000 effective February 1, 2008, and you
will be paid in accordance with CC’s normal payroll procedures.

4. Retention Bonus

You will be eligible for a retention bonus of one half of your current base salary, subject
to the terms described below. That amount will be paid to you only if you are still
employed by CC on the closing date and if you agree to and sign a general release
prepared by the Company. It will be paid to you through the next reasonable payroll
cycle following the closing date.

5. Termination

If CC terminates your employment other than for cause before the closing date, CC will
be obligated to pay you the retention bonus. However, no retention bonus will be
payable if you are terminated for cause or if you no longer hold your current position on

 

 

the closing date. If for any reason you resign from CC at any point before the closing
date, no retention bonus will be payable.

For purposes of this Agreement, “cause” means:

Your willful and continued failure to perform substantially your duties with CC.

Your willful engagement in illegal conduct or gross misconduct.

6. Price Bonus

In addition to the Retention Bonus described above, you are eligible for the following
Price Bonus. If the net price received by CC for the sale of the Television Division
exceeds $1,000,000,000 you will receive a bonus equal to 0.5% of the excess amount.
For example, if CC receives a net of $1,050,000,000 you will earn $50,000,000 X .005,
or $250,000. Payment of this bonus is also subject to the terms of sections 4 and 5 of this
Agreement.

7. Governing Law

The validity, interpretation and performance of this Agreement shall, in all respects, be
governed by the relevant laws of the state of Texas.

8. Modification

No provision of this Agreement may be modified, altered or amended, except by
collective agreement between CC and you in writing.

9. Arbitration

By signing this Agreement, you agree that any claims or disputes covered by this
Agreement or resulting from your employment during the term of the Agreement must be
submitted to binding arbitration in accordance with the terms of the Clear Channel
Arbitration Policy.

If you accept the terms of this Agreement, please sign below in the space provided.

	 	 	 
	Date:

	 	Employee (sign):
	 
	 	 
	 

	 	Craig Millar, Interim President/CEO — Clear Channel Television
	 
	 	 
	 
	 	 
	Date:

	 	Employer (sign):
	 
	 	 
	 

	 	Mark Mays, CEO — Clear Channel Communications

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