Document:

Exhibit 10.4

Exhibit 10.4

EXECUTION VERSION

Forbearance Agreement 

FORBEARANCE AGREEMENT, dated as of August 3, 2011 (this “Agreement”) among DHS HOLDING
COMPANY, a Delaware corporation (“Holdings”), DHS DRILLING COMPANY, a Colorado corporation (the
"Borrower”), the other Loan Parties party hereto, and LEHMAN COMMERCIAL PAPER INC., as
administrative agent (in such capacity, the “Administrative Agent”) and as the Lender (in such
capacity, the “Lender”) under that certain Credit Agreement (as defined below).

W I T N E S S E T H:

WHEREAS, the Borrower, Holdings, the Lender and the Administrative Agent are parties to that
certain Amended and Restated Credit Agreement, dated as of August 15, 2008, as amended by that
certain Amendment No. 1, dated as of September 19, 2008, and further amended by that certain Waiver
and Amendment No. 2, dated as of April 1, 2010 (as further amended, modified or supplemented from
time to time in accordance with its terms, the “Credit Agreement”; capitalized terms used but not
defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement);

WHEREAS, the Borrower, Holdings, the Lender and the Administrative Agent are parties to that
certain Forbearance Agreement, dated as of June 28, 2011 (the “Existing Forbearance Agreement”),
pursuant to which the Lender and the Administrative Agent agreed to forbear from exercising certain
rights under the Credit Agreement and the other Loan Documents in connection with the Forbearance
Default (as defined herein);

WHEREAS, the Borrower has failed in its performance of certain provisions of the Credit
Agreement as further described herein, such failure constituting a default under the Credit
Agreement;

WHEREAS, the Borrower and Holdings have requested that the Lender and the Administrative Agent
amend and restate the Existing Forbearance Agreement, and the Lender and the Administrative Agent
have agreed to do so, to, inter alia, extend the Forbearance Period (as defined herein) on the
terms and conditions specified;

WHEREAS, the Borrower and Holdings have requested that the Lender and the Administrative Agent
forbear, and the Lender and the Administrative Agent have agreed, subject to the terms and
conditions of this Agreement, to forbear, from exercising certain rights under the Credit Agreement
and the other Loan Documents during the Forbearance Period (as defined below).

NOW, THEREFORE, in consideration of the premises and the agreements hereinafter contained, the
parties hereto agree as follows:

1. Forbearance.

(a) Acknowledgement. As of the date hereof, each of the Loan Parties party hereto
acknowledge that the failure and anticipated failure, as the case may be, by the Borrower to (a) on
each of January 3, 2011, April 1, 2011 and July 1, 2011, service the amortization payment due and
payable pursuant to Section 2.4(a)(i) of the Credit Agreement (together, the “Payment Default”),
(b) on January 3, 2011, April 1, 2011 and July 1, 2011 service the interest payment due and payable
pursuant to Section 2.8(b) of the Credit Agreement (together, the

 

 

 

"Interest Default”) and (c) for the fiscal quarter ending on December 31, 2010, comply with
the covenant under Section 6.1(a) of the Credit Agreement with respect to maintenance of Minimum
Consolidated EBITDA (the “Maintenance Default,” together with the Payment Default and Interest
Default, the “Forbearance Default”) constitutes a default under the Credit Agreement.

(b) Forbearance Period. (i) During the period from the Effective Date (as defined
below) until August 8, 2011 (the “Forbearance Period”), each of the Administrative Agent and the
Lender hereby agrees to forbear (the “Forbearance”) from exercising its rights and remedies under
the Credit Agreement and the other Loan Documents arising as a result of the Forbearance Default;
provided, however, that upon the occurrence of any Event of Default other than the
Forbearance Default, including the Events of Defaults set forth in Section 1(c) hereof, the
Forbearance Period shall automatically and immediately terminate, and the Administrative Agent and
the Lender shall be entitled to exercise any and all of their rights and remedies under the Credit
Agreement, the other Loan Documents and applicable law, without further notice other than as
required therein. Upon termination of the Forbearance Period, (A) the forbearance shall
automatically terminate and be of no further force or effect without any further action by the
Lender, (B) the Forbearance Default is, without further action, reinstated and shall have the same
force and effect as if the Forbearance had not been agreed to by the parties hereto and (C) subject
to the terms of the Credit Agreement, the Loan Documents and applicable law, the Lender may
thereafter, without limitation, sue, ask for or demand from the Loan Parties payment of the
Obligations due and payable to such Lender, in whole or in part, and otherwise enforce any of its
rights and remedies (including rights of acceleration and foreclosure) provided for under the
Credit Agreement, the Loan Documents or applicable law against any party. Each of the Loan Parties
party hereto agrees that, subject to the agreement of the Lender to forbear from exercising certain
of their rights and remedies as and to the extent expressly set forth in this Agreement, all rights
and remedies of the Lender under the Credit Agreement, the Loan Documents or applicable law with
respect to such Loan Party shall continue to be available to the Lender from and after the
Effective Date.

(ii) It is understood and agreed that interest shall accrue from the Effective Date through
the remainder of the Forbearance Period on the outstanding Obligations at the applicable default
rates provided for pursuant to the Credit Agreement.

(c) Additional Events of Default. The following events shall constitute Events of
Default under the terms of the Credit Agreement and the other Loan Documents:

(i) any of the Borrower, Holdings or the other Loan Parties shall pledge, encumber, charge,
assign or grant a security interest in, or encumbrance of any kind on, any Collateral; or

(ii) any of the Borrower, Holdings or the other Loan Parties shall enter into any arrangement
to provide priority or preference with respect thereto, in connection with securing or obtaining
debtor-in-possession financing; or

(iii) any of the Loan Parties shall (x) pay any management fees to either of Delta Petroleum
Corporation (“Parent”) or Chesapeake Energy Corporation (“Chesapeake”) or (y) make any other
payments, distributions or dividends in respect of stock held by either of Parent or Chesapeake in
any Loan Party; or

(iv) Holdings, the Borrower or any other Loan Party shall fail to perform or observe any term,
covenant or agreement set forth in this Agreement; or

 

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(v) any representation or warranty made or deemed made by any Loan Party herein or any
representation or warranty made or deemed made hereafter by any Loan Party in any Loan Document or
which is made in connection with this Agreement or any other Loan Document shall prove to have been
incorrect or misleading in any material respect on or as of the date made or deemed made.

2. Forbearance Requirements.

As consideration for the Forbearance, during the Forbearance Period:

(a) Holdings and Borrower shall permit any third party financial consultant or advisor acting
on behalf of the Lender or Administrative Agent to inspect the property of Holdings and its
Subsidiaries and to conduct such other activity as contemplated in Section 5.7(b) of the Credit
Agreement.

(b) The Borrower shall facilitate such meetings between the Administrative Agent and Macquarie
Capital (USA) Inc., as the Borrower’s financial advisor, as the Administrative Agent may request
from time to time.

(c) The Borrower shall have paid or reimbursed the Administrative Agent for all of the
Administrative Agent’s reasonable out-of-pocket costs and expenses of every type and nature
(including the reasonable fees, expenses and disbursements of the Administrative Agent’s counsel,
Weil, Gotshal & Manges LLP) incurred by the Administrative Agent in connection with the
preparation, reproduction, execution and delivery of this Agreement and all other Loan Documents
entered into or in connection herewith and any other Loan Document entered into prior to the date
hereof.

(d) The Loan Parties shall provide the Lender with such other certificates, documents and
agreements as the Lender may reasonably request.

3. Representations and Warranties. Each of the Loan Parties party hereto represents
and warrants as follows (which representations and warranties shall survive the execution and
delivery of this Agreement):

(a) Each Loan Party has taken all necessary action to authorize the execution, delivery and
performance of this Agreement.

(b) This Agreement constitutes the legal, valid and binding obligation of each Loan Party,
enforceable against them in accordance with their respective terms, subject to applicable
bankruptcy, reorganization, insolvency, moratorium and similar laws affecting the enforcement of
creditors’ rights generally and to general equity principles.

(c) No consent or approval of any person, firm, corporation or entity, and no consent,
license, approval or authorization of any governmental authority is or will be required in
connection with the execution, delivery, performance, validity or enforcement of this Agreement,
other than any such consent, approval, license or authorization which has been obtained and remains
in full force and effect or where the failure to obtain such consent, approval, license or
authorization would not result in a Material Adverse Effect.

(d) After giving effect to this Agreement, each of the Borrower, Holdings and the other Loan
Parties is in compliance with all of the various covenants and agreements set forth in the Credit Agreement and each of the other Loan Documents, other than the Forbearance
Default.

 

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(e) After giving effect to this Agreement and the agreements to be delivered in connection
herewith, no event has occurred and is continuing which constitutes a Default or an Event of
Default, other than the Forbearance Default.

(f) After giving effect to this Agreement and the agreements to be delivered in connection
herewith, all representations and warranties contained in the Credit Agreement and each of the
other Loan Documents are true and correct in all material respects as of the date hereof, except to
the extent that any representation or warranty relates to a specified date, in which case such are
true and correct in all material respects as of the specific date to which such representations and
warranties relate, and except to the extent of any inconsistency in such representations or
warranties arising directly out of the Forbearance Default.

(g) Each report delivered and any information provided pursuant to or in connection with this
Agreement has and will be prepared on a reasonable basis and in good faith, and has/will be based
on assumptions believed by the applicable Loan Party to be reasonable at the time made and upon the
best information available to such Loan Party, and such Loan Party is not aware of any facts or
information that would lead the applicable party to believe that any such information or report is
incorrect or misleading in any material respect.

4. Fees and Expenses. Notwithstanding the terms of Section 2(c) above, the Borrower
and Holdings agree to pay on demand all fees, costs and expenses, including reasonable attorneys’
and consultants’ fees, of the Administrative Agent and the Lender incurred in connection with this
Agreement.

5. Effective Date. This Agreement shall not become effective unless and until (the
latest date upon which such occurs, the “Effective Date”) this Agreement shall have been duly
executed and delivered by the Loan Parties party hereto, the Lender and the Administrative Agent.

6. Reference and Continued Effectiveness of the Loan Documents.

(a) The term “Agreement”, “hereof”, “herein” and similar terms as used in the Credit
Agreement, and references in the other Loan Documents to the Credit Agreement, shall mean and refer
to, from and after the Effective Date, the Credit Agreement as affected by this Agreement.

(b) The Loan Parties hereby agree that all of the covenants and agreements contained in the
Credit Agreement and the Loan Documents are hereby ratified and confirmed in all respects and
confirm the Collateral will remain subject to the security interest of the Administrative Agent for
the benefit of the Secured Parties pursuant to the Loan Documents.

(c) The execution, delivery and effectiveness of this Agreement shall not, except as expressly
provided herein, operate as a forbearance or waiver of any right, power or remedy of the
Administrative Agent or the Lender under any of the Loan Documents, nor constitute a forbearance or
waiver of any other provision in any of the Loan Documents, except as expressly provided herein.

(d) This Agreement constitutes a Loan Document.

 

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7. Counterparts. This Agreement may be executed in counterparts, each of which shall
be an original, and all of which, taken together, shall constitute a single instrument. Delivery
of an executed counterpart of a signature page to this Agreement by telecopier shall be effective
as delivery of a manually executed counterpart of this Agreement.

8. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York without giving effect to the conflict of laws provisions
thereof.

9. Limitation. Each party hereto hereby agrees that this Agreement does not impose on
Lehman Commercial Paper Inc. affirmative obligations or indemnities not existing, as of the date of
its petition commencing its proceeding under chapter 11 of the United States Code, and that could
give rise to administrative expense claims.

10. Indemnity. The Borrower, Holdings and the other Loan Parties further agree,
jointly and severally, to defend, protect, indemnify and hold harmless the Administrative Agent and
the Lender, each of their respective Affiliates and their respective officers, directors,
employees, attorneys and agents (collectively the “Indemnitees”) from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs,
expenses of any kind or nature whatsoever (including, without limitation, the reasonable fees and
expenses of counsel for such Indemnitees in connection with any investigative, administrative or
judicial proceeding, whether or not such Indemnitees shall be designated as a party thereto),
imposed on, incurred by, or asserted against such Indemnitees in any manner relating to or arising
out of this Agreement or any other Loan Document (collectively the “Indemnified Matters”);
provided, however, that neither the Borrower, Holdings or any Loan Party shall have
an obligation to an Indemnitee hereunder with respect to Indemnified Matters caused or resulting
from (a) a dispute among the Lender or a dispute between the Lender and the Administrative Agent or
(b) the willful misconduct or gross negligence of such Indemnitee. If the undertaking to
indemnify, pay and hold harmless set forth in the preceding sentence may be unenforceable because
it violates any law or public policy, the Borrower, Holdings and the other Loan Parties shall
contribute the maximum portion which it is permitted to pay and satisfy under the applicable law,
to the payment and satisfaction of all Indemnified Matters incurred by Indemnities. This Section
10 shall survive the payment of the Obligations and the termination of this Agreement or any other
Loan Document.

[Signature Pages Follow]

 

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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed by their
respective officers as of the date first written above.

	 	 	 	 	 
	 	DHS DRILLING COMPANY, as the Borrower

 	 
	 	By:  	/s/  Kevin K. Nanke
 	 
	 	 	Name:  	Kevin K. Nanke 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	DHS HOLDING COMPANY, as Holdings

 	 
	 	By:  	/s/  Kevin K. Nanke
 	 
	 	 	Name:  	Kevin K. Nanke 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	CHAPMAN TRUCKING COMPANY, INC., as Guarantor

 	 
	 	By:  	/s/  Gregory D. Tubbs
 	 
	 	 	Name:  	Gregory D. Tubbs 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	HASTINGS DRILLING COMPANY, as Guarantor

 	 
	 	By:  	/s/ Gregory D. Tubbs
 	 
	 	 	Name:  	Gregory D. Tubbs 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	C&L DRILLING COMPANY, as Guarantor

 	 
	 	By:  	/s/  Gregory D. Tubbs
 	 
	 	 	Name:  	Gregory D. Tubbs 	 
	 	 	Title:  	Executive Vice President 	 
	 

[Signature Page to Agreement]

 

 

 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER, INC, as 

Administrative Agent and Lender

 	 
	 	By:  	/s/ David Walsh 	 
	 	 	Name:  	David Walsh 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Agreement]Exhibit 10.1

Exhibit 10.1

EXECUTION VERSION

INDEMNITY AND CONTRIBUTION AGREEMENT

THIS INDEMNITY AND CONTRIBUTION AGREEMENT (this “Agreement”) is made as of this 30th
day of July, 2011, by and among Westwood One, Inc., a Delaware corporation (“WWON”), Gores
Radio Holdings, LLC, a Delaware limited liability company (“Gores”), Verge Media Companies,
Inc., a Delaware corporation (“Verge”), and Triton Media Group, LLC, a Delaware limited
liability company (the “DG Shareholder”), and shall become effective automatically and
without any further action by any party hereto immediately upon consummation of the WWON Merger (as
defined below). Capitalized terms used herein, but not otherwise defined, shall have the meanings
ascribed to them in the Merger Agreement, dated as of July 30, 2011, by and between WWON, Radio
Network Holdings, LLC and Verge (the “Merger Agreement”).

WHEREAS, in connection with its sale of Metro Networks, Inc., Smart Route Systems, Inc. and
TLAC, Inc. (collectively, the “Metro Business”) to Clear Channel Acquisition LLC
(“Clear Channel”), Clear Channel and WWON agreed to certain mutual indemnification and
other potential payment obligations pursuant to that certain Stock Purchase Agreement, dated as of
April 29, 2011, between Clear Channel and WWON (the “Metro Agreement”);

WHEREAS, in connection with its sale of Triton Media Group, LLC (the “Digital
Business”) to Triton Digital Inc., a Delaware corporation (“TDI”), Verge Media, Inc., a
Delaware corporation and indirect wholly owned subsidiary of Verge (“VMI”), agreed to
certain indemnification obligations in favor of TDI and its direct and indirect subsidiaries, as
more fully described in Section 6 of the Unit Purchase Agreement, dated as of
July 29, 2011, between TDI and VMI (the “Digital Agreement”);

WHEREAS, in connection with and in furtherance of the merger of Verge with and into a
subsidiary of WWON (the “WWON Merger”), and the substantial benefits that the DG
Shareholder will derive from the WWON Merger, the DG Shareholder desires to provide, subject to the
terms and conditions contained in this Agreement, certain indemnification rights in favor of WWON
with respect to the Digital Business; and

WHEREAS, in connection with and in furtherance of the WWON Merger, and the substantial
benefits that Gores shall derive from the WWON Merger, Gores desires to provide, subject to the
terms and conditions contained in this Agreement, certain contribution rights in favor of the DG
Shareholder.

 

 

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
other good and valuable consideration, the parties hereby agree as follows:

	1.	 	DG SHAREHOLDER INDEMNITY

	 	(a)	 	Subject to the limitations contained in this Agreement, the DG Shareholder
shall indemnify and hold harmless WWON and each subsidiary of WWON (each an
“Indemnified Party”) against any Losses (as defined below) suffered by such
Indemnified Party to the extent arising from or directly related to the Digital
Business; provided that, for the avoidance of doubt, the DG Shareholder shall have
no obligation hereunder with respect to up to $166,667 of U.S. federal, state, local
and foreign tax liabilities imposed on any Indemnified Party with respect to the
sale of the Digital Business pursuant to the Digital Agreement, or with respect to
the distribution of the consideration received thereunder to DG Shareholder through
one or more Indemnified Parties.

	 	(b)	 	“Losses” means any and all losses, costs, obligations, liabilities,
settlement payments, awards, judgments, fines, penalties, damages, expenses,
deficiencies or other charges, in each case paid to a third party (which, for the
avoidance of doubt, shall (a) include, in the case of Section 2(a) below, any payments
made by WWON or any of its subsidiaries to Gores or any of its members or any of its or
their respective Affiliates pursuant to that certain Reimbursement Agreement, dated as
of July 22, 2011, made by WWON in favor of Gores Capital Partners II, L.P. and Gores
Co-Invest Partnership II, L.P., or otherwise as a result of Gores or any of its members
or any of its or their respective Affiliates making a payment pursuant to the Guaranty,
dated as of April 29, 2011, between Gores Capital Partners II, L.P. and Gores Co-Invest
Partnership II, L.P. in favor of Clear Channel, and (b) exclude the allocable time of
personnel of any party hereto or their affiliates, or the internal overhead (e.g.,
rent, office supplies, etc.) incurred in connection with handling a claim that is
subject to indemnification hereunder).

	 	(c)	 	All payments owed under this Section 1 by the DG Shareholder shall be payable
by the DG Shareholder solely from 53.161% of the net cash proceeds received from time
to time by the DG Shareholder in respect of the shares of Class B Common Stock of WWON
issued to the DG Shareholder upon consummation of the WWON Merger (and/or received by
the DG Shareholder in respect of any security, asset or other property received in
respect of such shares) (collectively, the “Class B WWON Stock”), whether
received as a result of a sale or other disposition of such Class B WWON Stock or as a
dividend or other distribution in respect of such Class B WWON Stock (the “DG
Shareholder Limit”), and shall be due within 10 business days after the later of
(y) the DG Shareholder’s receipt of any such net cash proceeds (to the extent not used
to satisfy other amounts owed hereunder) and (z) the DG Shareholder becoming obligated
to make such payment hereunder. No interest shall accrue with respect to amounts owed
hereunder pending the date on which any payments hereunder shall have become due and
payable.

 

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	 	(d)	 	Notwithstanding the foregoing, (i) the DG Shareholder’s obligations under this
Section 1 shall not apply with respect to any claim made against an Indemnified Party
after (or any claim made against an Indemnified Party before but not communicated to
the DG Shareholder in writing until after (or in the case of claims received within
five business days of such date, not communicated within 10 days following)) the
earlier to occur of (y) April 30, 2013, and (z) the date on which the record
stockholders of WWON immediately prior to the Effective Time
(excluding any nominees) cease to own at least 30% of the WWON Stock held by such
Persons immediately after the Effective Time (the earlier to occur of (y) and (z),
the “DG Shareholder Expiration Date”), and (ii) the DG Shareholder shall not
be obligated to make any payment, individually or in the aggregate, in excess of the
DG Shareholder Limit.

	 	(e)	 	For purposes of this Agreement, “net cash proceeds” shall mean, cash proceeds
actually received, less actual out-of-pocket costs to non-affiliates related to the
sale or transfer of WWON Stock (e.g., brokerage commissions, underwriter commissions or
discounts, legal fees, etc., but specifically excluding any taxes associated with such
sale or transfer other than stamp taxes, sales tax, ad valorem tax or other non-income
taxes incurred by the seller of such WWON stock).

	2.	 	GORES CONTRIBUTION

	 	(a)	 	Subject to the limitations contained in this Agreement, if WWON or any of its
subsidiaries makes any payment(s) from time to time pursuant to the Metro Agreement
(whether pursuant to an indemnification obligation, a purchase price adjustment
mechanism or otherwise) or otherwise suffers any Losses (as defined in Section 1(b)
above) to the extent arising from or directly related to to the Metro Business (each a
“Covered Payment”), then, for each such Covered Payment, Gores shall pay an
amount to the DG Shareholder equal to the Gores Contribution Amount (as defined below)
for such Covered Payment.

	 	(b)	 	For purposes of this Agreement, “Gores Contribution Amount” shall mean,
for each Covered Payment, an amount equal to:

	 	(i)	 	For the first $5,000,000 of Covered Payments, the product of
(y) the excess, if any, of (A) the amount of such Covered Payment (or portion
thereof as applicable), over (B) the aggregate of all amounts received by WWON
from Clear Channel under the Metro Agreement following the consummation of the
WWON Merger (“Clear Channel Payments”) but only to the extent such
Clear Channel Payments are not then being applied, and have not been previously
applied, against any other Covered Payment pursuant to this clause (B) or
clause (c) below, and (z) 45.135%; and

	 	(ii)	 	For Covered Payments in excess of $5,000,000, the product of
(y) the excess, if any, of (A) the amount of such Covered Payment (or portion
thereof as applicable), over (B) all Clear Channel Payments received by WWON in
excess of $5,000,000 but only to the extent such Clear Channel Payments in
excess of $5,000,000 are not then being applied, and have not been previously
applied, against any other Covered Payment under this clause (B) or clause (c)
below, and (z) 50.820%.

 

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	 	(c)	 	If, subsequent to any payment(s) made by Gores pursuant to Section 2(a)
above, WWON receives a Clear Channel Payment that is not then being applied, and had
not otherwise been previously applied, to any other Covered Payment under
clause (i)(B) or (ii)(B) above and that would have reduced the amount Gores would
have been required to pay pursuant to the formula(s) set forth in Section 1(b) above
had such Clear Channel Payment been received prior to such payment(s), the DG
Shareholder shall promptly return to Gores the amount necessary to reduce Gores’
total payment(s) to the amount which would have been required to be paid by Gores
had such Clear Channel Payment (or portion thereof as applicable) been received
prior to such payment(s).

	 	(d)	 	All payments owed under this Section 2 by Gores shall be payable by Gores
solely from the net cash proceeds received by Gores from time to time after the date
hereof in respect of shares of common stock of WWON (and/or received by Gores in
respect of any security, asset or other property received directly or indirectly in
respect of such shares of common stock, including but not limited to the shares of
Class A Common Stock to be issued to Gores upon consummation of the Reclassification)
(collectively, the “Class A WWON Stock” and, together with the Class B WWON
Stock, the “WWON Stock”), whether received as a result of a sale or other
disposition of such Class A WWON Stock or as a dividend or other distribution in
respect of such Class A WWON Stock, and shall be due within 10 business days after the
later of (y) Gores’ receipt of any such net cash proceeds (to the extent not used to
satisfy other amounts owed hereunder) and (z) Gores becoming obligated to make such
payment hereunder. No interest shall accrue with respect to amounts owed hereunder
pending the date on which any payments hereunder shall have become due and payable.

	 	(e)	 	Notwithstanding the foregoing, Gores’ obligations under this Section 2 shall
not apply with respect to any claim made against WWON or any of its subsidiaries after
(or any claim made against WWON or any of its subsidiaries before but not communicated
to Gores in writing until after (or in the case of claims received within five business
days of such date, not communicated within 10 days following)) the earlier to occur of
(y) April 30, 2013, and (z) the date on which the DG Shareholder, its members and their
respective Affiliates, collectively, cease to own at least 30% of the common stock of
WWON owned by such persons upon the closing of the WWON Merger (the earlier to occur of
(y) and (z), the “Gores Expiration Date”).

	3.	 	COVENANTS OF EACH OF GORES AND THE DG SHAREHOLDER

	 	(a)	 	From and after the date hereof until the Gores Expiration Date (or, if any
claims against WWON or any of its subsidiaries for which Gores could be required to
make a payment pursuant to Section 2 hereof remain pending, or for any reason
any payment owed hereunder by Gores remains unpaid, as of the Gores Expiration Date,
then until all such claims have been resolved and Gores has paid all amounts owed
hereunder), Gores shall (i) not sell or otherwise voluntarily dispose of any Class A
WWON Stock other than in a transaction solely for cash consideration, (ii) not use,
encumber, distribute or otherwise transfer any net cash proceeds received by Gores from
time to time after the date hereof in respect of Class A WWON Stock, whether received
as a result of a sale or other disposition
 of such Class A WWON Stock or as a dividend or other distribution in respect of such
Class A WWON Stock (“Gores Restricted Cash Proceeds”), (iii) not incur any
Indebtedness or other obligation other than the payment obligations under this
Agreement, (iv) deposit all Gores Restricted Cash Proceeds into an account with a
United States banking institution or invest such cash in Cash Equivalents and cause
such deposit or investment to be held solely in the name of Gores, and (iv) not
co-mingle the Gores Restricted Cash Proceeds with any other cash or Cash Equivalents
of Gores or of any other Person.

 

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	 	(b)	 	From and after the date hereof until the DG Shareholder Expiration Date (or, if
any claims against an Indemnified Party for which the DG Shareholder could be required
to make a payment pursuant to Section 1 hereof remain pending, or for any
reason any payment owed hereunder by the DG Shareholder remains unpaid, as of the DG
Shareholder Expiration Date, then until all such claims have been resolved and the DG
Shareholder has paid all amounts owed hereunder), the DG Shareholder shall (i) not sell
or otherwise voluntarily dispose of any Class B WWON Stock other than in a transaction
solely for cash consideration, (ii) not use, encumber, distribute or otherwise transfer
any net cash proceeds received by the DG Shareholder from time to time in respect of
Class B WWON Stock, whether received as a result of a sale or other disposition of such
Class B WWON Stock or as a dividend or other distribution in respect of such Class B
WWON Stock (the “DG Shareholder Restricted Cash Proceeds”), provided
that the DG Shareholder shall be permitted to use, encumber, distribute or
otherwise transfer from time to time 46.839% of such net cash proceeds, and,
notwithstanding any implication herein to the contrary, such unrestricted portion of
such net cash proceeds shall not be considered DG Shareholder Restricted Cash Proceeds
for any purpose hereunder, (iii) deposit all DG Shareholder Restricted Cash Proceeds
into an account with a United States banking institution or invest such cash in Cash
Equivalents and cause such deposit or investment to be held solely in the name of the
DG Shareholder, and (iv) not co-mingle the DG Shareholder Restricted Cash Proceeds with
any other cash or Cash Equivalents of the DG Shareholder or of any other Person. For
the avoidance of doubt, nothing herein shall restrict the DG Shareholder’s ability to
use, encumber, distribute or otherwise transfer any other assets of the DG Shareholder,
including but not limited to the shares of TDI held from time to time by the DG
Shareholder and any net cash proceeds received from time to time in respect thereof.

	4.	 	Miscellaneous

	 	(a)	 	Any failure of a party to comply with any obligation, covenant, agreement or
condition herein may be waived, but only if such waiver is in writing and is signed by
the party against whom the waiver is to be effective. Such waiver or failure to insist
upon strict compliance with such obligation, covenant, agreement or condition shall not
operate as a waiver of, or estoppel with respect to, any subsequent or other failure.
Whenever this Agreement requires or permits consent by or on behalf of any party
hereto, such consent shall be given in writing
in a manner consistent with the requirements for a waiver of compliance as set forth
in clause (b) of this Section 4.

 

5

 

	 	(b)	 	All notices and other communications hereunder shall be in writing (including
by fax) and shall be deemed to have been duly given (i) when delivered in person, (ii)
one (1) Business Day after being sent by reputable overnight courier, (iii) when faxed
during business hours (with confirmation of transmission having been received) or (iv)
three (3) Business Days after being mailed by registered or certified mail (postage
prepaid, return receipt requested), in each case to the respective parties at the
following addresses (or at such other address for a party as shall be specified by like
notice):

	 	(i)	 	If to WWON:

	 
	 	 	 	Westwood One, Inc.

1166 Avenue of the Americas, 10th Floor

New York, NY 10036

Attention: General Counsel

Fax: (212) 641-2198

	 
	 	 	 	with copies to:

	 
	 	 	 	Skadden, Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, CA 90071-3144

Attention: Rick C. Madden, Esq.

Fax: (213) 621-5379

	 
	 	 	 	and

	 
	 	 	 	Kirkland & Ellis LLP

300 North LaSalle

Chicago, IL 60654

Attention: Christopher J. Greeno, P.C.

Tana M. Ryan

Fax: (312) 862-2200

	 
	 	(ii)	 	If to Gores:

	 
	 	 	 	The Gores Group, LLC

10877 Wilshire Blvd, 18th Floor

Los Angeles, CA 90024

Attention: General Counsel

Fax: (310) 443-2149

 

6

 

	 	 	 	with a copy to:

	 
	 	 	 	Skadden, Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, CA 90071-3144

Attention: Rick C. Madden, Esq.

Fax: (213) 621-5379

	 
	 	(iii)	 	If to Verge:

	 
	 	 	 	Verge Media Companies, Inc.

15303 Ventura Boulevard, Suite 1500

Sherman Oaks, CA 91403

Attention: Chief Executive Officer

Fax: (818) 990-0930

	 
	 	 	 	with copies to:

	 
	 	 	 	Oaktree Capital Management, L.P.

333 S. Grand Ave., 28th Floor

Los Angeles, CA 90071

Attention: Andrew Salter

Fax: (213) 830-6394

	 
	 	 	 	and

	 
	 	 	 	Kirkland & Ellis LLP

300 North LaSalle

Chicago, IL 60654

Attention: Christopher J. Greeno, P.C.

Tana M. Ryan

Fax: (312) 862-2200

	 
	 	(iv)	 	If to the DG Shareholder:

	 
	 	 	 	Triton Media Group LLC

c/o Oaktree Capital Management, L.P.

333 S. Grand Ave., 28th Floor

Los Angeles, CA 90071

Attention: Andrew Salter

Fax: (213) 830-6394

	 
	 	 	 	with a copy to:

	 
	 	 	 	Kirkland & Ellis LLP

300 North LaSalle

Chicago, IL 60654

Attention: Christopher J. Greeno, P.C.

Tana M. Ryan

Fax: (312) 862-2200

 

7

 

	 	(c)	 	This Agreement and all of the provisions hereof shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and permitted
assigns, but neither this Agreement nor any of the rights, interests or obligations
hereunder may be assigned by any of the parties hereto without the prior written
consent of the other parties hereto.

	 	(d)	 	This Agreement and all other agreements executed pursuant to the terms of this
Agreement will be governed by and construed in accordance with the laws of the State of
Delaware without reference to the choice of law principles thereof. The parties hereby
irrevocably and unconditionally submit to the exclusive jurisdiction of the Chancery
Court of Delaware and, in the absence of such jurisdiction, the United States District
Court for the District of Delaware, and, in the absence of such federal jurisdiction,
the parties consent to be subject to the exclusive jurisdiction of any Delaware state
court sitting in New Castle County and hereby waive the right to assert the lack of
personal or subject matter jurisdiction or improper venue in connection with any such
suit, action or other proceeding. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT SUCH PARTIES MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO
ANY SUIT OR ACTION ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE). EACH PARTY HEREBY CERTIFIES
THAT NO OTHER PARTY HERETO NOR ANY OF THEIR REPRESENTATIVES HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT THEY WOULD NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL.
FURTHER, EACH PARTY ACKNOWLEDGES THAT THE OTHER PARTIES RELIED ON THIS WAIVER OF RIGHT
TO JURY TRIAL AS A MATERIAL INDUCEMENT TO ENTER INTO THIS AGREEMENT.

	 	(e)	 	This Agreement may be executed by the parties hereto individually or in any
combination, in counterparts, each of which shall be deemed an original and all of
which shall together constitute one and the same instrument. In the event that any
signature to this Agreement or any amendment hereto is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof. No party hereto shall raise the use of a
facsimile machine or e-mail delivery of a “.pdf” format data file to deliver a
signature to this Agreement or any amendment hereto or the fact that such signature was
transmitted or communicated through the use of a facsimile machine or e-mail delivery
of a “.pdf” format data file as a defense to the formation or enforceability of a
contract, and each party hereto forever waives any such defense.

 

8

 

	 	(f)	 	If any provision or provisions of this Agreement or of any of the documents or
instruments delivered pursuant hereto, or any portion of any provision hereof or
thereof, shall be deemed invalid or unenforceable pursuant to a final determination of
any court of competent jurisdiction or as a result of future legislative action, then
such provision or portion thereof shall be construed to give effect to the parties’
intent regarding such provision or portion thereof to the maximum extent permitted by
applicable Law, and such determination or action shall be construed so as not to affect
the validity, enforceability or effect of any other portion hereof or thereof.

	 	(g)	 	With regard to all dates and time periods set forth or referred to in this
Agreement, time is of the essence.

	 	(h)	 	This Agreement, and the documents and instruments referred to herein, embody
the entire agreement and understanding of the parties hereto in respect of the subject
matter hereof and supersede all prior agreements and understandings between the parties
with respect to the subject matter hereof. There are no restrictions, promises,
representations, warranties, covenants or undertakings of the parties hereto in respect
of the subject matter hereof, other than those expressly set forth or referred to
herein or therein.

[Signature Pages Follow]

 

9

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and date
first above written.

	 	 	 	 	 	 	 	 	 
	 	 	WESTWOOD ONE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ David Hillman	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	David Hillman	 	 
	 

	 	 	 	Title:
	 	CAO and GC	 	 

[Signature Page to Indemnity and Contribution Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	GORES RADIO HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By: THE GORES GROUP, LLC, its Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jon Gimbel	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Jon Gimbel	 	 
	 

	 	 	 	Title:	 	Principal	 	 

Solely for the purpose of agreeing to the last sentence of Section 3(a):

	 	 	 	 	 	 	 	 	 
	 	 	GORES CAPITAL PARTNERS II, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GORES CAPITAL ADVISORS II, LLC,	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	THE GORES GROUP, LLC, its Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jon Gimbel	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Jon Gimbel	 	 
	 

	 	 	 	Title:	 	Principal	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GORES CO-INVEST PARTNERSHIP II, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GORES CAPITAL ADVISORS II, LLC,	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	THE GORES GROUP, LLC, its Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jon Gimbel	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Jon Gimbel	 	 
	 

	 	 	 	Title:	 	Principal	 	 

[Signature Page to Indemnity and Contribution Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	VERGE MEDIA COMPANIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ David Quick	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	David Quick	 	 
	 

	 	 	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TRITON MEDIA GROUP, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ David Quick	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	David Quick	 	 
	 

	 	 	 	Title:
	 	Assistant Secretary	 	 

[Signature Page to Indemnity and Contribution Agreement]

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