Document:

exv10w3

Exhibit 10.3

EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made and entered into effective the 22nd day of December, 2001, by and
between CUMULUS MEDIA INC., an Illinois corporation (the “Company”), and Richard Denning (the
“Employee”).

R E C I T A L S:

     The Company desires to employ the Employee in the capacity of Vice President and General
Counsel and the Employee desires to be so employed. Accordingly, the Company and the Employee
desire to set forth in this Agreement the terms and conditions under which the Employee is to be
employed by the Company.

     NOW, THEREFORE, the parties agree as follows:

ARTICLE I

General Terms of Employment

     Beginning the fourth day of February 2002 and for the remainder of the term of this Agreement
(the “Agreement Term”), the Company shall employ the Employee and the Employee shall serve the
Company as a full-time employee in the capacity of Vice President and General Counsel of the
Company. In this capacity, Employee shall report to the Chief Executive Officer of the Company.
Subject to the direction of the Chief Executive Officer, the Employee shall be responsible for the
direction and supervision of the legal affairs of the Company and its operating subsidiaries.

ARTICLE II

Compensation and Equity Incentives

     2.1 Base Salary. During the Agreement Term, the Company shall pay to the Employee a base
salary per annum (the “Base Salary”), payable in equal installments not less frequently than
semi-monthly, as follows:

	 	 	 	 	 
	Period	 	Base Salary	 
	1st year
	 	$	200,000	 
	2nd year
	 	 	230,000	 
	3rd year
	 	 	260,000	 

 

 

Thereafter the Base Salary shall be reviewed annually for any merit increases by the Compensation
Committee (the “Compensation Committee”) of the Board of Directors of the Company (the “Board”).

2.2 Annual Bonus. In addition to the Base Salary, the Employee shall be eligible to receive an
annual bonus (the “Bonus”) as follows:

	 	 	 	 	 
	Period	 	Eligible Bonus	 
	1st year
	 	$	25,000	 
	2nd year
	 	 	30,000	 
	3rd year
	 	 	35,000	 

Payment of the Bonus will be based on Employee’s performance measured as follows. Employee shall
be eligible to receive up to fifty percent (50%) of the potential Bonus for a year based on the
assessment of the Chief Executive Officer of the effectiveness of Employee in the management of
legal costs. Employee shall be eligible to receive the second fifty percent (50%) of his potential
Bonus for a year based on the assessment of the Chief Executive Officer of the Employee’s overall
performance in directing and coordinating the legal affairs of the Company.

     2.3 Equity Incentives. The Compensation Committee will meet and make the following grants to
Employee of options to purchase shares of the Company’s Class A Common Stock (the “Time-Vested
Options”): (a) no later than ninety (90) days following commencement of employment, Time-Vested
Options to purchase 40,000 shares shall be granted to the Employee; (b) in connection with the
annual grants to be made in 2003, Time-Vested Options to purchase an additional 50,000 shares shall
be granted to the Employee; and (c) in connection with the annual grants to be made in 2004,
Time-Vested Options to purchase an additional 60,000 shares shall be granted to the Employee. Each
grant of Time-Vested Options shall be subject to the terms of the stock option agreement which will
accompany the grant and will be entered into between the Company and the Employee, provided however
that the terms contained in such stock option agreements shall be consistent with the terms of this
Agreement. Except as otherwise provided for in this Agreement, the Time-Vested Options shall vest
based on the continued employment of the Employee in equal quarterly installments of 1/16 of the
number of subject shares on the last day of each of the sixteen (16) consecutive calendar quarters
ending following the date of grant. The exercise price of the Time-Vested Options shall be the
market price per share on the date of each grant. Except as otherwise provided in this Agreement,
the Time-Vested Options shall have a 10-year term of exercise.

ARTICLE III

Expenses and Benefits

     3.1 Expenses. The Company shall pay or reimburse the Employee for all reasonable out-of-pocket
expenses incurred by the Employee in the course of performing his duties for the Company in
accordance with the Company’s expense account and reimbursement policies from time to time in
effect. The Employee shall keep accurate records and receipts of such expenditures and shall
submit such accounts and proof thereof as may from time to time be

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required in accordance with such
expense account or reimbursement policies that the Company may establish for its personnel
generally.

     3.2 Benefits. The Employee shall be entitled during the term hereof to receive such incentive
stock options as the Compensation Committee in its discretion may decide. In addition, the
Employee shall be entitled during the term hereof to receive such fringe benefits and to
participate in such benefit programs as the Company may from time to time make generally available
to its senior executives of the Company including, but not limited to, any group health and life
insurance, qualified or non-qualified pension, profit sharing and savings plans, any death benefit
and disability benefit plans, any medical, dental, health and welfare plans and any stock purchase
programs that are approved by the Compensation Committee on terms and conditions comparable to
those generally provided to other senior executives of the Company. The Employee acknowledges that
he shall have no vested rights under any such benefit programs except as expressly provided by the
terms thereof and that such programs and the prerequisites thereof may be established or eliminated
at any time at the discretion of the Company.

ARTICLE IV

Term and Termination

     4.1 Term. The Agreement Term shall commence as of the date hereof and shall continue
thereafter for a term of three (3) years unless earlier terminated by either party in accordance
with Section 4.2 below. The Agreement Term shall automatically be renewed for consecutive renewal
terms of one (1) year, unless either party notifies the other party of its desire not to renew the
Agreement no less than sixty (60) days prior to the last day of the initial three-year term, or no
less than thirty (30) days prior to the last day of any one-year renewal term.

     4.2 Earlier Termination. Notwithstanding the term stated in Paragraph 4.1 hereof, the
Employee’s employment under this Agreement may be terminated immediately upon any of the following:

          (a) In the event of the Employee’s death.

          (b) In the event of the Employee’s Disability. For purposes of this Agreement, “Disability”
shall mean the inability of the Employee to perform his duties for the Company on account of
physical or mental illness for a period of six consecutive full months, or a period of nine full
months during any 12-month period in either case as a result of a condition that is treated as a
total or permanent disability under the long term disability insurance policy of the Company that
covers the Employee. The Employee’s employment hereunder shall be deemed terminated by reason of
Disability on the last day of the applicable period; provided, however, in no event shall the
Employee be terminated by reason of Disability unless the Employee receives written notice from the
Company, at least thirty (30) days in advance of such termination, stating its intention to
terminate the Employee for reason of Disability.

          (c) By the Company forthwith upon notice to the Employee whether or not the Employee has
committed any acts constituting “Cause.” For purposes of this Agreement,

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“Cause” for termination
of the Employee shall exist only upon (i) the conviction of the Employee of a felony under the laws
of the United States or any state thereof, whether or not appeal is taken, (ii) a material breach
by the Employee of any agreement with the Company concerning noncompetition or the confidentiality
of proprietary information, (iii) gross negligence of the Employee, willful misconduct of the
Employee, or willful or continued failure by the Employee (except as provided in Section 4.2(b)
hereof) to substantially perform his duties hereunder, in either case which has a material adverse
effect on the Company; or (iv) the willful fraud or material dishonesty of the Employee in
connection with his performance of duties to the Company. However, in no event shall the
Employee’s employment be considered to have been terminated for “Cause” unless and until the
Employee receives a copy of a resolution adopted by the Board finding that, in the good faith
opinion of the Board, the Employee is guilty of acts or omissions constituting Cause, which
resolution has been duly adopted by an affirmative vote of a majority of the Board. The Employee
shall have the opportunity to cure any such acts or omissions (other than item (i) above) within
fifteen (15) days of the Employee’s receipt of such resolution.

          (d) By the Employee through voluntary resignation.

          (e) By the Employee for “Good Reason.” “Good Reason” for purposes of this Agreement shall
mean:

     (i) the assignment to the Employee of duties materially inconsistent with the
Employee’s position (including status, offices, titles or reporting relationships),
authority, duties or responsibilities as contemplated by ARTICLE I hereof, any
material adverse change in the Employee’s reporting responsibilities, or any action
by the Company that results in a material diminution in such position, authority,
duties or responsibilities, but excluding for these purposes an action not taken in
bad faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Employee;

     (ii) any failure by the Company to comply in a material respect with the
compensation and benefits provisions of ARTICLES II or III hereof or to comply with
any other material obligation of the Company under this Agreement, including,
without limitation, any failure by the Company to obtain an assumption
of this Agreement by a successor corporation as required under Section 8.4(a)
hereof, but excluding for these purposes a failure or action not taken in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given
by the Employee; or

     (iii) the relocation, without the consent of the Employee, of the Employee’s
office to a location more than forty (40) miles from Atlanta, Georgia.

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ARTICLE V

Compensation upon Termination of Employment

     In the event the Employee’s employment is terminated during the Agreement Term, the Employee
shall be entitled to the severance payments and benefits specified below:

     5.1 Termination by Company Without Cause or by Employee for Good Reason.

     In the event Employee is terminated by the Company other than for Cause, death or Disability,
or in the event the Employee resigns with Good Reason, the Company shall pay the Employee and
provide him with the following:

          (a) Accrued Rights. The Company shall pay the Employee a lump-sum amount equal to the
sum of (1) his earned but unpaid Base Salary through the date of termination, (2) any earned but
unpaid Bonus under Section 2.2 above, and (3) any business expenses or other amounts due to the
Employee from the Company as of the date of termination. In addition, the Company shall provide to
the Employee all payments, rights and benefits due as of the date of termination under the terms of
the Company’s employee and fringe benefit plans and programs in which the Employee participated
during the term (together with the lump-sum payment, the “Accrued Rights”).

          (b) Severance Payment. If the termination occurs prior to August 4, 2003, the Company
shall pay the Employee an amount equal to fifty percent (50%) of the annual Base Salary in effect
at the time of termination. If the termination occurs on or after August 4, 2003, the Company
shall pay the Employee an amount equal to one hundred percent (100%) of the annual Base Salary in
effect at the time of termination. Any amount payable pursuant to this section shall be payable in
four (4) equal consecutive quarterly installments, with the first such payment to be made within
fifteen (15) days following the date of termination.

          (c) Equity Rights. As of the date of the Employee’s termination under this paragraph,
Employee shall be entitled to (i) any vested portion (as determined immediately prior to the
termination) of the Time-Vested Options and (ii) that portion of any unvested portion (as
determined immediately prior to the termination) of the Time-Vested Options which would have vested
had Employee remained employed with the Company for six (6) months beyond the date of termination,
which options in both cases shall remain exercisable until the earlier of the expiration of one (1)
year after the date of termination and the expiration of the full term thereof. The remainder of
the Time Vested Options shall be forfeited.

     5.2 Voluntary Resignation or Termination for Cause.

     In the event the Employee’s employment hereunder is terminated hereunder because of his
voluntary resignation other than for Good Reason or because the Company has terminated the Employee
for Cause, the Company shall pay the Employee and provide him with any and all Accrued Rights. Any
unvested Time-Vested Options shall terminate immediately and shall be of no further force or
effect. Any vested Time-Vested Options shall remain exercisable until the earlier of the
expiration of one (1) year after the date of termination and the expiration of the full term
thereof.

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     5.3 Disability; Death.

     In the event the Employee’s employment hereunder is terminated by reason of the Employee’s
Disability or death, the Company shall pay and provide the Employee (or his legal representative or
estate) with the following:

          (a) Accrued Rights. The Company shall pay and provide to the Employee (or his legal
representative or estate) any and all Accrued Rights, including all disability or life insurance
benefits as applicable);

          (b) Salary Continuation. The Company shall provide the Employee (or his legal
representative or estate) with continued payment of the Employee’s then-current Base Salary for a
period of twelve (12) months.

          (c) Equity Rights. As of the date of the Employee’s termination under this paragraph,
Employee shall be entitled to any vested portion of the Time-Vested Options, which shall remain
exercisable until the earlier of the expiration of one (1) year after the date of termination and
the expiration of the full term thereof. The remainder of the Time-Vested Options shall be
forfeited.

     5.4 Change in Control.

     In the event of a termination of employment by the Employee by voluntary resignation or of a
termination of employment by the Company other than for Cause, which occurs within one year
following a Change in Control as defined below, then, Employee shall receive the benefits
identified in 5.1 (a), (b), and (c), and Employee shall also be entitled to any unvested portion of
the Time-Vested Options, which shall become immediately and fully vested and exercisable and shall
remain exercisable until the expiration of the full term thereof. For purposes of this Agreement,
a “Change in Control” shall be deemed to have occurred by reason of:

          (a) The sale, lease, transfer, conveyance, or other disposition (other than by way of merger
or consolidation), in one or a series of related transactions, of all or substantially all of the
assets of the Company and its subsidiaries taken as a whole to any “person” or group of related
“persons” (a “Group”) (as such terms are used in Section 13(d)(3) of the Securities Exchange Act of
1934 (the “Exchange Act”) other than Richard W. Weening and Lewis W. Dickey, Jr. (a “Principal”) or
(1) any stockholder beneficially owning more than 40% of the aggregate voting power of all classes
of capital stock of the Company having the right to elect directors under ordinary circumstances,
80% (or more) owned subsidiary, or spouse or
immediate family member (in the case of an individual) of a Principal or (2) any trust,
corporation, partnership, or other entity, the beneficiaries, stockholders, partners, owners or
“persons” beneficially holding an 80% or more controlling interest of which consist of such
Principal and/or other “persons” referred to in the immediately preceding clause (1);

          (b) The adoption of a plan relating to the liquidation or dissolution of the Company;

          (c) The consummation of any transaction (including, without limitation, any purchase, sale,
acquisition, disposition, merger, or consolidation) the result of which is that any

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“person” (as
defined above) or Group becomes the “beneficial owner” (as such term is defined in Rule 13d-3 and
Rule 13d-5 under the Exchange Act) of more than 35% of the aggregate voting power of all classes of
capital stock of the Company having the right to elect directors under ordinary circumstances;

          (d) The Company is merged or consolidated or reorganized into or with another corporation or
other legal person, and both (1) as a result of such merger, consolidation or reorganization less
than a majority of the combined voting power of the then-outstanding securities of such corporation
or person immediately after such transaction are held in the aggregate by the holders of securities
having the right to elect directors of the Company under ordinary circumstances immediately prior
to such transaction and (2) Lewis W. Dickey, Jr. is not the chief executive officer of such
corporation or person; or

          (e) The first day on which a majority of the members of the Board are not “Continuing
Directors”, where “Continuing Directors” are either (1) members of the Board on the Effective Date
or (2) members of the Board nominated for election or elected to such Board with the approval of
two-thirds of the Continuing Directors who were members of the Board at the time of such nomination
or election, or two-thirds of those directors who were previously approved of by Continuing
Directors.

ARTICLE V-A

     The Employee shall not be required to seek other employment or to reduce any severance benefit
payable to him under ARTICLE V hereof, no such severance benefit shall be reduced on account of any
compensation received by the Employee from other employment. The Company’s obligation to pay
severance benefits under this Agreement shall not be reduced by any amount owed by the Employee to
the Company.

ARTICLE VI

Confidentiality and Inventions

     6.1 Duty Not to Disclose. The Employee acknowledges that trade secrets and other information,
observations and data, whether written or oral, obtained by him while employed by the Company
concerning the business or affairs of the Company that is proprietary to the Company or any of its
customers or suppliers (“Confidential Information”) are the property of the Company or such
customers or suppliers. Therefore, the Employee agrees that he shall not disclose to any unauthorized person or
use for his own account any Confidential Information without the prior written consent of the
Board, unless and to the extent that the aforementioned matters become generally known to and
available for use by the public other than as a result of the Employee’s acts or omissions to act.
The Employee shall deliver to the Company at the termination of Employment, or at any other time
the Company may request, all memoranda, notes, plans, records, reports, computers, computer tapes
and software and other documents and data (an copies thereof) relating to the Confidential
Information, Work Product (defined in Section 6.2), or the business of the Company which he may
then possess or have under his control. Notwithstanding this Section 6.1, Confidential Information
may be disclosed pursuant to a subpoena or valid final order of a court or administrative body of
competent jurisdiction to

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the extent necessary to comply therewith, in which event the Employee
shall notify the Company as promptly as practicable (and, if possible, prior to making any
disclosure) and shall seek confidential treatment of such information. The covenants made in this
Section 6.1 shall remain in effect during the term of the Employee’s employment with the Company
and, in the case of Confidential Information that constitute trade secrets under the Georgia
Uniform Trade Secrets Act, shall survive the termination of such employment for any reason
indefinitely, and, in the case of all other Confidential Information, shall survive for a period of
five (5) years after such termination.

     6.2 Ownership. The Employee further agrees and acknowledges that Confidential Information
other than that of suppliers and customers, as between the Company and the Employee, shall be
deemed and at all times remain and constitute the exclusive property of the Company, whether or not
patentable or copyrightable, and that the Company has reserved — and does hereby reserve — all
rights in and to the same for all purposes and to take all necessary and appropriate precautions to
avoid the unauthorized disclosure of any Confidential Information.

     6.3 Return of Information. In the event the Employee’s employment with the Company terminates
for any reason, the Employee shall, upon request by the Company, promptly return to the Company all
property of the Company and its affiliates in the Employee’s possession or under the Employee’s
direct or indirect control, including, without limitation, all Confidential Information and all
equipment, notebooks, and materials, reports, notes, contracts, memoranda, documents, and data of
the Company or any of its affiliates or constituting or relating to the Confidential Information
(and any and all copies thereof), whether typed, printed, written, or on any source of computer
media, unless the parties agree otherwise.

     6.4 Inventions. The Employee agrees that all inventions, innovations, improvements,
developments, methods, designs, analyses, drawings, reports, and all similar or related information
which relates to the Company’s actual or anticipated business, research and development or existing
or future services which are conceived, developed or made by the Employee while employed by the
Company (“Work Product”) belong to the Company. The Employee will promptly disclose such Work
Product to the Board and perform all actions reasonably requested by the Board (whether
during or after employment) to establish and confirm such ownership (including, without limitation,
assignments, consents, powers of attorney and other instruments).

ARTICLE VII

Noncompetition

     7.1 Acknowledgement. The Employee acknowledges that in the course of his employment with the
Company (a) he will become familiar with the Company’s trade secrets and with other confidential
information concerning the Company, (b) that his services have been and will be of special, unique
and extraordinary value to the Company, and (c) that the Company would be irreparably damaged if
the Employee were to provide similar services to any person or entity competing with the Company or
engaged in a similar business in the markets served or to be served by the Company. The Company
and the Employee recognize that Employee will be responsible for assisting in the development of
the Company’s strategies and marketing programs

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with respect to the business of Company-owned or
—operated radio broadcasting stations as they exist on the date of the Employee’s termination of
employment or radio broadcasting stations that have been identified as potential acquisitions on
the date of this Agreement and are actually acquired by the Company (the “Business”), for
supervising other employees of the Company performing a variety of services related to the
Business, and for developing goodwill for the Company with respect to the Business through
Employee’s personal contact with customers, agents, and others having business relationships with
the Company. There is therefore a danger that this goodwill, a proprietary asset of the Company,
may follow the Employee if and when the Employee’s relationship with the Company is terminated.
Accordingly, the Employee agrees and covenants as follows:

     7.2 Non-Compete. Subject to Section 7.7 below, during the period of the Employee’s employment
with the Company in any capacity and during the twelve (12) months after the termination of
employment (collectively, the “Noncompete Period”) (provided however that, in the event, pursuant
to Section 5.1(b) above, Employee becomes entitled to a severance payment equal to fifty percent
(50%) of the annual Base Salary in effect at the time of termination, the Noncompete Period shall
extend only during the six (6) months after the termination of employment), the Employee shall not
compete within the listening areas (as defined by the Arbitron Metro Survey Area) set forth on
Exhibit A, within which the Company currently conducts the Business or currently has
agreements pending regulatory approval to engage in such businesses (collectively, the
“Territory”), by acting as a manager of a business substantially similar to the Business, a
supervisor of officers or employees rendering services for such a business, or as an advisor with
respect to the conduct of such a business, whether on Employee’s own behalf or as an employee,
director, or independent contractor of any enterprise that is competing with or plans to be in
competition with the Company with respect to the Business; provided, however, that nothing in this
Agreement shall prohibit the Employee from rendering or offering to provide services with respect
to office operations, equipment or supplies or services related to business finances or operations
of a nature provided to companies generally and not specifically to those that are
conducting the Business. Notwithstanding the above, this Section 7.2 shall have no force or effect
in the event of a termination of employment following expiration of the Agreement Term as of a
result of a notification of non-renewal by either party pursuant to Section 4.1 above.

     7.3 Covenant Not to Solicit Customers. Subject to Section 7.7, during the period in which the
Employee is employed by the Company (whether pursuant to this Agreement or otherwise) and during
the Noncompete Period, Employee will not, directly or indirectly, on Employee’s own behalf or on
behalf of any other individual or entity, solicit, call upon, divert, or actively take away, or
attempt to solicit, call upon, divert, or take away, for purposes of conducting a business
substantially similar to the Business, any individual, corporation, partnership, or other
association or entity who or that, at any time during the period of the Employee’s employment with
the Company, both (a) obtained or contracted services from the Company (a “Customer”) or, to the
Employee’s knowledge, was solicited by the Company for business (whether or not he, she, or it
became an actual customer) and (b) was contacted by the Employee at any time during the term of the
Employee’s employment by the Company. Nothing herein shall prohibit the Employee from being a
passive owner of not more than 1/2 of 1% of the outstanding stock (and/or options to acquire stock)
of any class of a corporation which is publicly traded and is competitive with the Business, so
long as Employee has no active

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participation in the business of such corporation. Subject to the
consent of the Company, which consent will not be unreasonably withheld, the Employee’s performance
of minimal consulting services with a previous employer will not be deemed to constitute “active
participation” for purposes of the preceding sentence.

     7.4 Nonsolicitation of Employees and Suppliers. During the Noncompete Period, the Employee
shall not directly or indirectly through another entity (a) induce or attempt to induce any
employee of the Company to leave the employ of the Company or in any way interfere with the
relationship between the Company and any employee thereof, (b) hire any person who was an employee
of the Company at any time during the Agreement Term and was solicited by the Employee, or (c)
induce or attempt to induce any supplier, licensor or other non-customer business relation of the
Company to cease doing business with the Company or interfere in any way with the relationship
between any such supplier, licensor or business relation and the Company.

     7.5 Expansion of Business. In the event that, and each time during the Employee’s employment
with the Company as, the Company (a) establishes the Business hereafter in a territory other than
the Territory or (b) adds a substantially different service line to the Business, the Employee
agrees to execute and deliver an amendment to this Agreement adding the territory or additional
service line or some combination thereof upon payment to the Employee by the Company of the sum of
$100.00.

     7.6 Enforcement. If, at the time of enforcement of this Article VII, a court holds that the
restrictions stated herein are unreasonable under circumstances then existing, the parties hereto
agree that the maximum, period, scope or geographical area reasonable under such circumstances
shall be substituted for the stated period, scope or area. Because the Employee’s services are unique and because the
Employee has access to Confidential Information and Work Product, the parties hereto agree that
money damages would be an inadequate remedy for any breach of this Agreement. Therefore, in the
event a breach or threatened breach of this Agreement, the Company or its successors or assigns
may, in addition to other rights and remedies existing in their favor, apply to any court of
competent jurisdiction for specific performance and/or injunctive or other relief in order to
enforce, or prevent any violations of, the provisions hereof (without posting a bond or other
security).

     7.7 Application to Company and Subsidiaries. For purposes of the covenants made in this
Article VII, references to the Company shall include all subsidiaries.

ARTICLE VIII

Miscellaneous

     8.1 Withholding; Method of Payment.

     All amounts payable to the Employee pursuant to this Agreement are stated before any
deductions therefrom for FICA taxes, state and federal withholding taxes and other payroll
deductions required to be made by the Company under applicable law. The Company shall have the
right to rely upon an opinion of its regular accountants or other tax advisors if any questions

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should arise as to any such deductions. Any lump-sum payments provided for in this Agreement shall
be made in a cash payment, net of any required tax withholding, no later than the fifth business
day following the Employee’s date of termination or other payment date. Any payment required to be
made to the Employee under this Agreement that is not made in a timely manner shall bear interest
until the date of payment at an interest rate equal to 120% of the monthly compounded applicable
federal rate as in effect under Section 1274(d) of the Code for the month in which payment is
required to be made.

     8.2 Notices.

     Any notice required or permitted to be given or made by either party to the other hereunder
shall be in writing and shall be considered to be given and received in all respects one business
day after when hand delivered, when sent by prepaid express or courier delivery service, or after
deposited in the United States mail, certified or registered mail, return receipt requested, on the
date shown on such return receipt, in each case addressed to the parties at their respective
addresses set forth opposite their signatures hereto or to such changed address as either party
shall designate by proper notice to the other.

     8.3 Severability.

     If for any reason one or more of the provisions of this Agreement are deemed by a court of
competent jurisdiction to be unenforceable or otherwise void by operation of law, the remainder of
this Agreement will be deemed to be valid and enforceable and shall be construed as if such invalid
or unenforceable provision were omitted.

     8.4 Assignment; Binding Affect.

          (a) This Agreement shall be binding upon and shall inure to the benefit of the Company, its
successors and any person, firm, corporation or other entity which succeeds to all or substantially
all of the business, assets or property of the Company. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business, assets or property of the Company, to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this Agreement, the
“Company” shall mean the Company as hereinbefore defined and any successor to its business, assets
or property as aforesaid which executes and delivers an agreement provided for in this Section 8.4
or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of
law.

          (b) This Agreement and all rights of the Employee hereunder shall inure to the benefit of and
be enforceable by the Employee’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Employee should die while any
amounts are due and payable to him hereunder, all such amounts, unless otherwise provided herein,
shall be paid to the Employee’s designated beneficiary or, if there be no such designated
beneficiary, to the legal representatives of the Employee’s estate.

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     8.5 Entire Agreement.

     This Agreement contains the entire understanding between the parties with respect to the
matters set forth herein and therein and all prior discussions, negotiations, agreements,
correspondence and understandings between the parties (whether oral or written) are merged herein
and therein and superseded hereby. Notwithstanding the foregoing, the parties hereto shall enter
into stock option agreements in respect of the Time-Vested Option setting forth terms and
conditions consistent with the provisions of this Agreement. No provision in this Agreement may be
amended or modified other than in writing.

     8.6 Waiver of Breach.

     No waiver by either party hereto of any breach of any provision of this Agreement shall be
deemed a waiver by such party of any subsequent breach.

     8.7 Governing Law.

     This Agreement shall be construed and interpreted according to the laws of the State of
Georgia.

     8.8 Survival.

     Articles V, V-A, VI and VII of this Agreement shall survive and continue in full force in
accordance with their terms notwithstanding any termination of employment.

     8.9 Counterparts.

     This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

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

	 	 	 	 	 

	Address for Notice:	 	CUMULUS MEDIA INC.:
	 
	 	 	 	 
	Cumulus Media Inc.
	 	 	 	 
	3535 Piedmont Road
	 	 	 	 
	Building
14, 14th Floor

	 	By:
	 	/s/ Lewis Dickey
	 

	 	 	 	 
	Atlanta, Georgia 30305

	 	 	 	Lewis Dickey
	Attention: President
	 	 	 	 
	 
	 	 	 	 
	Address for Notice:	 	EMPLOYEE:
	 
	 	 	 	 
	Cumulus Media Inc
	 	 	 	 
	3535 Piedmont Road
	 	 	 	 
	Building
14, 14th Floor

	 	By:
	 	/s/ Richard Denning
	 	 	 	 	 
	Atlanta, Georgia 30305

	 	 	 	Richard Denning
	Attention: Richard Denning
	 	 	 	 

13exv10w4

Exhibit 10.4

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

     THIS FIRST AMENDMENT (this “Amendment”) is entered into as of December 31, 2008 (the
“Effective Date”), by and between CUMULUS MEDIA INC., a corporation organized and existing under
the laws of the State of Delaware (hereinafter the “Company”) and RICHARD S. DENNING, an individual
resident of the State of Georgia (hereinafter the “Employee”). Capitalized terms not otherwise
defined herein shall have the meaning set forth in the Agreement (as defined below).

RECITALS

     WHEREAS, the Company and the Employee entered into an Employment Agreement dated December 22,
2001 (the “Agreement”); and

     WHEREAS, the Company and the Employee believe it is in their best interest to amend the
Agreement in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”).

     NOW, THEREFORE, the parties agree as follows:

AGREEMENT

	1.	 	The following shall be added to the end of Section 2.2 of the Agreement:

	 	 	 	In no event shall any bonus pursuant to this Section 2.2 be paid
later than the fifteenth day of the third month after the end of the
Company’s fiscal year to which the bonus relates.

	2.	 	The following shall be added to the end of Section 3.1 of the Agreement:

	 	 	 	Any payment or reimbursement by the Company pursuant to this Section
3.1 shall be subject to the Reimbursement Rules (as hereinafter
defined).

	3.	 	Section 5.1(b) of the Agreement shall be deleted in its entirety and replaced with the
following:

	 	 	 	(ii) Severance Payment. The Company shall pay the Employee
an amount equal to one hundred percent (100%) of the annual Base
Salary in effect at the time of termination. Any amount payable
pursuant to this Section 5.1(b) shall be payable in four equal
consecutive quarterly installments, in accordance with Section 8.11.

 

 

	4.	 	Section 5.3(b) of the Agreement shall be deleted in its entirety and replaced with the
following:

	 	 	 	(b) Salary Continuation. The Company shall pay the Employee
(or his legal representative or estate) an amount equal to one
hundred percent (100%) of the Base Salary in effect on the date of
termination. Any amount payable pursuant to this Section 5.3(b)
shall be payable in four equal consecutive quarterly installments,
in accordance with Section 8.11.

	5.	 	The third sentence of Section 8.1 of the Agreement shall be deleted in its entirety and
replaced with the following:

	 	 	 	Except as otherwise provided in Sections 8.10 or 8.11, any lump-sum
payments provided for in this Agreement shall be made in a cash
payment, net or any required tax withholding, no later than the
fifth business day following the Employee’s date of termination or
other payment date.

	6.	 	The following shall be added to the Agreement as Section 8.10:

	 	 	 	8.10. REIMBURSEMENT RULES. The “Reimbursement Rules” means
the requirement that any amount of expenses eligible for
reimbursement under this Agreement be made (i) in accordance with
the reimbursement payment date set forth in the applicable provision
of this Agreement providing for the reimbursement or (ii) where the
applicable provision does not provide for a reimbursement date,
thirty (30) calendar days following the date on which the Employee
incurs the expenses, but, in each case, no later than December 31 of
the year following the year in which the Employee incurs the related
expenses; provided, that in no event shall the reimbursements or
in-kind benefits to be provided by the Company in one taxable year
affect the amount of reimbursements or in-kind benefits to be
provided in any other taxable year, nor shall the Employee’s right
to reimbursement or in-kind benefits be subject to liquidation or
exchange for another benefit. Notwithstanding the foregoing, all
reimbursements relating to the Additional Delayed Payments (as
hereinafter defined) shall be made on the Permissible Payment Date
(as hereinafter defined).

	7.	 	The following shall be added to the Agreement as Section 8.11:

	 	 	 	8.11. SECTION 409A OF THE CODE.

	 	 	 	(a) Notwithstanding any provisions of this Agreement to the
contrary, if the Employee is a “specified employee” (within the
meaning of Section 409A of the Code and determined pursuant to

- 2 -

 

	 	 	 	procedures adopted by the Company) at the time of his
separation from service and if any portion of the payments or
benefits to be received by the Employee upon separation from service
would be considered deferred compensation under Section 409A of the
Code, amounts that would otherwise be payable pursuant to this
Agreement during the six-month period immediately following the
Employee’s separation from service (the “Delayed Payments”) and
benefits that would otherwise be provided pursuant to this Agreement
(the “Delayed Benefits”) during the six-month period immediately
following the Employee’s separation from service (such period, the
“Delay Period”) shall instead be paid or made available on the
earlier of (i) the first business day of the seventh month following
the date of the Employee’s separation from service or (ii)
Employee’s death (the applicable date, the “Permissible Payment
Date”). The Company shall also reimburse the Employee for the
after-tax cost incurred by the Employee in independently obtaining
any Delayed Benefits (the “Additional Delayed Payments”).
	 
	 	 	 	(b) Each payment under this Agreement shall be considered a
“separate payment” and not of a series of payments for purposes of
Section 409A of the Code.
	 
	 	 	 	(c) Any Delayed Payments shall bear interest at the United States
5-year Treasury Rate plus 2%, which accumulated interest shall be
paid to the Employee on the Permissible Payment Date.
	 
	 	 	 	(d) A termination of employment shall not be deemed to have occurred
for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits subject to Section 409A of the
Code upon or following a termination of employment unless such
termination is also a “separation from service” (within the meaning
of Section 409A of the Code).

	8.	 	The Agreement is hereby deemed to be further amended as necessary to conform it to the terms
of this Amendment. All other provisions of the Agreement, except as specifically amended
herein, remain in full force and effect and are incorporated herein.
	 
	9.	 	This Amendment may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

[Signatures appear on following pages]

- 3 -

 

     IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the Effective
Date.

	 	 	 	 	 
	 	

CUMULUS MEDIA INC.

 	 
	 	By:  	/s/ Martin Gausvik
 	 
	 	 	Name:  	Martin Gausvik 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 
	 	By:  	/s/ Richard S. Denning
 	 
	 	 	Richard S. Denning 	 
	 

- 4 -

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