Document:

Exhibit 4.2

Exhibit 4.2

WESTWOOD ONE, INC.

 

CERTIFICATE OF DESIGNATIONS

OF

7.50% SERIES A-1 CONVERTIBLE PREFERRED STOCK

(Pursuant to Section 151 of the Delaware General Corporation Law)

 

Westwood One, Inc., a Delaware corporation (the “Corporation”), in accordance with the
provisions of Section 103 of the Delaware General Corporation Law (the “DGCL”) does hereby
certify that, in accordance with Section 141(c) of the DGCL, the following resolution was duly
adopted by the Board of Directors of the Corporation (the “Board”) as of April 20, 2009:

RESOLVED, that the Board pursuant to authority expressly vested in it by the provisions of the
Restated Certificate of Incorporation of the Corporation, as amended (the “Certificate of
Incorporation”), hereby authorizes the issuance of one series of Preferred Stock designated as
the 7.50% Series A-1 Convertible Preferred Stock (the “Series A-1 Preferred Stock”), par
value $0.01 per share, of the Corporation to consist of 75,000 shares of Series A-1 Preferred
Stock, and hereby fixes the powers, preferences, rights, qualifications, limitations and
restrictions thereof (in addition to any provisions set forth in the Certificate of Incorporation
that are applicable to the Preferred Stock of all classes and series) as follows:

1. Certain Definitions. Unless the context otherwise requires, the terms defined in this
paragraph 1 shall have, for all purposes of this resolution, the meanings herein specified.

“Affiliate” of a Person means any other Person that, directly or indirectly through one or
more intermediaries, controls or is controlled by or is under common control with the first Person.

“Budget” has the meaning set forth in subparagraph 6(c) below.

“Business Day” means any day except Saturday, Sunday and any day on which banking institutions
in New York City are authorized or required by Law or other governmental action to close.

“Certificate of Designations” means this Certificate of Designations of the Corporation’s
7.50% Series A-1 Convertible Preferred Stock.

“Charter Amendment” means an amendment of the Certificate of Incorporation to increase the
number of authorized shares of Common Stock to permit the conversion of all outstanding shares of
Series A-1 Preferred Stock and Series B Preferred Stock.

 

 

 

“Closing Price” means, for any date, if the Common Stock is then listed on a Trading Market,
the last sales price (regular way) or the average of the last bid and ask prices, as applicable,
per share of Common Stock for such date (or the nearest preceding date that is a Trading Day) on
such Trading Market on which the Common Stock is then listed.

“Common Stock” means the Corporation’s Common Stock, par value $0.01 per share, and any other
class or series of the Corporation’s capital stock, howsoever designated, authorized after the
Issue Date, that has the right (subject always to prior rights of any class or series of preferred
stock) to participate in the distribution of the assets and earnings of the Corporation without
limit as to per share amount, excluding participating preferred stock.

“Company Redemption Closing Price” has the meaning set forth in subparagraph 4(a) below.

“Conversion Date” means, as applicable, the Mandatory Conversion Date and/or the Optional
Conversion Date.

“Conversion Price” means the price per share of Common Stock used to determine the number of
shares of Common Stock deliverable upon conversion of the Series A-1 Preferred Stock, which price
shall initially be $0.03601, subject to adjustment in accordance with the provisions of paragraph 5
below.

“Corporation” has the meaning set forth in the first introductory paragraph above.

“DGCL” has the meaning set forth in the first introductory paragraph above.

“Dividend Date” means March 31, June 30, September 30 and December 31 of each year, beginning
June 30, 2009.

“Dividend Period” means (a) the period beginning on the Issue Date and ending on the first
Dividend Date and (b) each quarterly period thereafter between Dividend Dates.

“Dividend Rate” means (a) from the Issue Date to June 19, 2013, 7.50% and (b) from and after
June 20, 2013, 15.0%.

“Encumbrance” means any charge, claim, community property interest, condition, easement,
covenant, warrant, demand, encumbrance, equitable interest, lien, mortgage, option, purchase right,
pledge, security interest, right of first refusal or other right of third parties or restriction of
any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any
other attribute of ownership.

“Excluded Stock” means (a) shares of Common Stock issuable by the Corporation upon conversion
of shares of Series A-1 Preferred Stock or upon exercise of the Warrants, (b) up to 5,000,000
shares of Common Stock issued in connection with a bona fide acquisition by the Corporation of a
Related Business by merger, asset purchase, stock purchase or any other reorganization;
provided, that the Corporation is the surviving Person after such transaction, and (c) up
to 6,000,000 shares of Common Stock (or options to purchase such shares or any combination thereof)
issued in fiscal 2008 and up to 4,000,000 shares of Common Stock
(or options to purchase such shares or any combination thereof) issued in each fiscal year
thereafter, in each case to eligible participants pursuant to a bona fide employee stock option
plan or stock incentive plan approved by the Board.

 

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“Governmental Authority” means any United States federal, state, provincial, supranational,
county or local or any foreign government, governmental, regulatory or administrative authority,
agency, self-regulatory body, instrumentality or commission, and any court, tribunal, or judicial
or arbitral body (including private bodies) and any political or other subdivision, department or
branch of any of the foregoing

“Holder” means any record holder of Series A-1 Preferred Stock as such shall appear upon the
stock register of the Corporation.

“Issue Date” means April 23, 2009.

“Junior Stock” means the Common Stock and any other class or series of capital stock of the
Corporation ranking junior to the Series A-1 Preferred Stock both as to dividends and as to
distributions upon a Liquidation Event.

“Laws” means any statute, law (including common law), rule, ordinance, code or regulation,
Order, interpretation, guidance, directive, policy statement or opinion of any Governmental
Authority.

“Liquidation Event” means any termination, liquidation, dissolution or winding up of the
Corporation, either voluntary or involuntary. At the election of the Holders of a majority of the
then outstanding shares of Series A-1 Preferred Stock, (a) the consolidation or merger of the
Corporation into or with another Person or Persons (other than any such transactions in which the
holders of a majority of the Voting Stock in the Corporation (measured by voting power rather than
the number of shares and without distinction as to any series or class of Voting Stock) immediately
before such transaction hold a majority of the Voting Stock in the surviving Person (measured by
voting power rather than the number of shares and without distinction as to any series or class of
Voting Stock) immediately after such transaction), or (b) the sale of all or substantially all of
the assets of the Corporation and its Subsidiaries (determined on a consolidated basis) shall each
be deemed a Liquidation Event.

“Liquidation Preference” means, on any date, the product of (1) the Multiplier times (2) the
sum of (a) $1,065 plus (b) accrued dividends thereon through such date.

“Mandatory Conversion Date” has the meaning set forth in subparagraph 5(b) below.

“Maximum Authorized Amount” means, on any date, (A) the number of authorized shares of Common
Stock under the Certificate of Incorporation that have not been issued as of such date less (B) all
of the shares of Common Stock underlying all of the then outstanding options, warrants and
convertible securities of the Corporation, other than the Series A-1 Preferred Stock and the Series
B Preferred Stock.

“Modified Redemption Price” has the meaning set forth in paragraph 12 below.

 

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“Multiplier” means (a) 1.0 through December 19, 2013, and (b) 1.5 thereafter.

“Optional Conversion Date” has the meaning set forth in subparagraph 5(c).

“Order” means any award, writ, stipulation, determination, decision, injunction, judgment,
order, decree, ruling, subpoena or verdict entered, issued, made or rendered by, or any contract
with, any Governmental Authority.

“Parity Stock” means the Series B Preferred Stock and any other class or series of capital
stock of the Corporation ranking on a parity with the Series A-1 Preferred Stock both as to
dividends and as to distributions upon a liquidation, dissolution or winding up of the Corporation.

“Permitted Holder” means any of the Purchasers or their Related Persons.

“Person” means any individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
Governmental Authority or other entity of any kind.

“Preemptive Notice” has the meaning set forth in subparagraph 7(a) below.

“Preemptive Shares” has the meaning set forth in subparagraph 7(a)(i) below.

“Pro Rata Portion” means, on any date with respect to any Person, the product of (a) a
fraction, (i) the numerator of which is the number of shares of Common Stock underlying the Series
A-1 Preferred Stock and/or Series B Preferred Stock proposed to be converted by such Person on such
date and (ii) the denominator of which is the number of shares of Common Stock underlying the
Series A-1 Preferred Stock and Series B Preferred Stock outstanding on such date, and (b) the
Maximum Authorized Amount on such date.

“Purchasers” means Gores Radio Holdings, LLC (in each case together with its designees that
are Affiliates of The Gores Group, LLC).

“Redemption Agent” means a bank or trust company in good standing, organized under the Laws of
the United States of America or any jurisdiction thereof, and having capital, surplus and undivided
profits aggregating at least One Hundred Million Dollars ($100,000,000) appointed by the
Corporation as its agent for redemption of the Series A-1 Preferred Stock.

“Redemption Price” means the consideration to be paid upon redemption of the Series A-1
Preferred Stock, determined in accordance with paragraph 4 below.

“Related Businesses” means the business in which the Corporation and its Subsidiaries were
engaged on the Issue Date and any business reasonably related or complementary thereto.

“Related Person” means with respect to any Purchaser (x) any Affiliate of such Purchaser and
any officer, director, partner or member of such Purchaser or any of its Affiliates and (y) any
investment fund, investment partnership, investment account or other investment
Person whose investment manager, investment advisor, managing member or general partner is (i)
such Purchaser or an Affiliate of such Purchaser or (ii) any officer, director, partner or member
of such Purchaser or any of its Affiliates.

 

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“Senior Notes Agreement” means the Note Purchase Agreement, dated as of December 3, 2002,
between the Corporation and the purchasers listed on Schedule A thereto, as amended or restated and
in effect from time to time.

“Series A-1 Preferred Stock” has the meaning set forth in the second paragraph of this
Certificate of Designations.

“Series A-1 Purchase Agreement” means the Purchase Agreement, dated as of April 23, 2009,
among the Corporation and the Purchasers.

“Series B Preferred Stock” means the 8.0% Series B Convertible Preferred Stock, par value
$0.01 per share, of the Corporation.

“Stockholder Approval” means the affirmative vote of the holders of at least 75% of the voting
power of all outstanding shares of capital stock of the Corporation having general voting power,
regardless of class and voting together as a single class, for the approval of the Charter
Amendment.

“Subsidiary” means (a) a corporation more than 50% of the combined voting power of the
outstanding Voting Stock of which is owned, directly or indirectly, by the Corporation, (b) a
partnership of which the Corporation, directly or indirectly, is the general partner and has the
power to direct the policies, management and affairs or (c) any other Person (other than a
corporation) in which the Corporation, directly or indirectly, has at least a majority ownership
interest or majority voting power.

“Trading Day” means (a) any day on which the Common Stock is listed and traded on the Trading
Market, or (b) if the Common Stock is not then listed and traded on the Trading Market, then any
Business Day.

“Trading Market” means any national securities exchange, if the Common Stock is then listed on
such exchange.

“Voting Stock” means, with respect to any Person, capital stock of such Person that ordinarily
has voting power for the election of directors (or persons performing similar functions) of such
Person.

“Warrants” means the warrants that were purchased under the Purchase Agreement, dated as of
February 25, 2008, among the Corporation and the Purchasers.

2. Dividends.

(a) The Holders shall be entitled to receive dividends at the Dividend Rate per annum,
compounded quarterly. Such dividends shall be cumulative from the Issue Date and shall be
added daily to the Liquidation Preference. The dividends per share of Series
A-1 Preferred Stock for any full quarterly period shall be computed by multiplying the
Dividend Rate for such Dividend Period by the Liquidation Preference (determined as of the
first day of such Dividend Period) per share and dividing the result by four. Dividends
payable for any period less than a full quarterly Dividend Period shall be computed on the
basis of a 360-day year of twelve 30-day months and the actual number of days elapsed for
any period less than one month.

 

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(b) In addition to the dividends specified in subparagraph 2(a) above, if dividends are
declared or paid on the Common Stock, then such dividends shall be declared and paid pro
rata on the Common Stock and the Series A-1 Preferred Stock, treating each share of Series
A-1 Preferred Stock as the greatest whole number of shares of Common Stock then issuable
upon conversion thereof pursuant to paragraph 5 below and assuming the Series A-1 Preferred
Stock is convertible in its entirety without regard to the ability of the Corporation to
issue Common Stock upon such conversion and without regard to the Maximum Authorized Amount.

(c) So long as any shares of Series A-1 Preferred Stock shall be outstanding, the
Corporation shall not (i) declare or pay any dividend or make any distribution on any Junior
Stock, whether in cash, property or otherwise (other than dividends payable in shares of the
class or series upon which such dividends are declared or paid, or payable in shares of
Common Stock with respect to Junior Stock for which an adjustment is made pursuant to
subparagraph 5(e)(i) hereof) or (ii) purchase or redeem, or permit any Subsidiary to
purchase or redeem any Junior Stock (except by conversion into or in exchange solely for
 shares of Common Stock), or pay or make available any monies for a sinking fund for the
purchase or redemption of any Junior Stock, other than up to 2,000,000 shares of Common
Stock from employees of the Corporation who are not directors or executive officers of the
Corporation upon termination of employment with the Corporation.

3. Distributions Upon Liquidation Event. Upon any Liquidation Event, before any distribution
or payment shall be made to the holders of Junior Stock, the Holders shall be entitled to be paid,
to the extent possible the greater of (a) the Liquidation Preference on the date of determination,
and (b) the amount that would be payable to the Holders if such Holders had converted all
outstanding shares of Series A-1 Preferred Stock into shares of Common Stock immediately prior to
such Liquidation Event assuming the Series A-1 Preferred Stock is convertible in its entirety
without regard to the ability of the Corporation to issue Common Stock upon such conversion and
without regard to the Maximum Authorized Amount. If such payment shall have been made in full to
the Holders, and if payment shall have been made in full to the holders of any Parity Stock of all
amounts to which such holders shall be entitled, the remaining assets and funds of the Corporation
shall be distributed among the holders of Junior Stock, according to their respective shares and
priorities. If, upon any such Liquidation Event, the net assets of the Corporation distributable
among the Holders and the holders of all outstanding shares of any Parity Stock shall be
insufficient to permit the payment in full to such holders of the preferential amounts to which
they are entitled, then the entire net assets of the Corporation remaining shall be distributed
among the Holders and the holders of any Parity Stock ratably in proportion to the full amounts to
which they would otherwise be respectively entitled. After payment to the holders of Series A-1
Preferred Stock of the full amount to which they are
entitled under this paragraph 3, such holders of Series A-1 Preferred Stock shall have no
right or claim to any assets of the Corporation.

 

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4. Redemption by the Corporation.

(a) Optional Redemption. The Series A-1 Preferred Stock shall not be redeemed in whole
or in part prior to March 19, 2013. Thereafter, subject to paragraph 10 of the Certificate
of Designations of the Series B Preferred Stock, the Series A-1 Preferred Stock may be
redeemed by the Corporation at any time in whole, at the option of the Corporation, for an
amount, in cash (except as provided below) equal to the greater of (a) Liquidation
Preference on the redemption date and (b) the product of the average Closing Price of the
ten (10) Trading Days immediately preceding the redemption date (the “Company Redemption
Closing Price”) and the number of shares of Common Stock that would have been issued had
the Holders converted all outstanding shares of Series A-1 Preferred Stock into shares of
Common Stock on the redemption date assuming the Series A-1 Preferred Stock is convertible
in its entirety without regard to the ability of the Corporation to issued Common Stock upon
such conversion and without regard to the Maximum Authorized Amount; provided, that
if the amount described in clause (b) exceeds the amount described in clause (a), the
Corporation shall pay the portion of the Redemption Price equal to such excess by delivering
that whole number of shares of Common Stock determined by dividing such excess by the
Company Redemption Closing Price and rounding up.

(b) A notice of redemption shall be sent by or on behalf of the Corporation to the
Holders not less than thirty (30) days nor more than ninety (90) days prior to the
anticipated date of redemption (i) notifying such Holders of the election of the Corporation
to redeem such shares and of the date of redemption, (ii) stating the place or places at
which the shares called for redemption shall, upon presentation and surrender of the
certificates evidencing such shares, be redeemed, and the Redemption Price therefor, and
(iii) stating the name and address of the Redemption Agent, and the name and address of the
Corporation’s transfer agent for the Series A-1 Preferred Stock.

(c) The Corporation shall appoint the Redemption Agent as its agent for redemption of
the Series A-1 Preferred Stock. Following such appointment and prior to any redemption, the
Corporation shall deliver to the Redemption Agent irrevocable written instructions
authorizing the Redemption Agent, on behalf and at the expense of the Corporation, to cause
such notice of redemption to be duly mailed as herein provided as soon as practicable after
receipt of such irrevocable instructions and in accordance with the above provisions. All
funds and shares of Common Stock necessary for the redemption shall be deposited with the
Redemption Agent in trust at least two (2) Business Days prior to the date of redemption,
for the pro rata benefit of the Holders of the shares so called for redemption, so as to be
and continue to be available therefor.

(d) If a notice of redemption shall have been given as provided herein, and the
Corporation shall not default in the payment of the Redemption Price, then (i) each Holder
of shares called for redemption shall be entitled to all preferences and relative and other
rights accorded by this resolution until and including the time of redemption and (ii)
from and after the time of redemption the shares called for redemption shall no longer
be deemed to be outstanding, and all rights of the Holders of such shares shall cease and
terminate, except the right of the Holders of such shares, upon surrender of certificates
therefor, to receive amounts to be paid hereunder.

 

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(e) The deposit of monies and shares of Common Stock in trust with the Redemption Agent
shall be irrevocable except that the Corporation shall be entitled to receive from the
Redemption Agent the interest or other earnings, if any, earned on any monies so deposited
in trust, and the Holders of any shares redeemed shall have no claim to such interest or
other earnings, and any balance of monies so deposited by the Corporation and unclaimed by
the Holders entitled thereto at the expiration of two years from the Redemption Date shall
be repaid, together with any interest or other earnings thereon, to the Corporation, and
after any such repayment, the Holders of the shares entitled to the funds so repaid to the
Corporation shall look only to the Corporation for such payment, without interest.

5. Conversion Rights. The Series A-1 Preferred Stock shall be convertible into Common Stock
as follows:

(a) Conversion at the Option of Holder. Subject to and upon compliance with the
provisions of this paragraph 5, any Holder shall have the right at such Holder’s option, at
any time or from time to time, to convert such Holder’s shares of Series A-1 Preferred Stock
into a number of fully paid and nonassessable shares of Common Stock calculated in
accordance with subparagraph (c) below. Notwithstanding the foregoing, if the number of
 shares of Common Stock issuable with respect to all shares of Series A-1 Preferred Stock and
Series B Preferred Stock surrendered for conversion on any date exceeds the Maximum
Authorized Amount on such date, each holder thereof may only convert the number of shares of
Series A-1 Preferred Stock and Series B Preferred Stock so that the total number of shares
of Common Stock so issuable is no greater than such holder’s Pro Rata Portion.

(b) Mandatory Conversion. On the first date on which there are a number of unissued
 shares of Common Stock authorized under the Certificate of Incorporation sufficient to
permit conversion of all of the then outstanding shares of Series B Preferred Stock and
Series A-1 Preferred Stock (the “Mandatory Conversion Date”), each outstanding share
of Series A-1 Preferred Stock shall automatically be converted (simultaneously with the
conversion of each outstanding share of Series B Preferred Stock into Common Stock), without
any further act of the Corporation or its stockholders (and whether or not the certificates
representing such shares are surrendered to the Corporation or its transfer agent), into
fully paid and nonassessable shares of Common Stock based on the Conversion Price then in
effect. As soon as reasonably practicable following the Mandatory Conversion Date, the
Corporation shall deliver a written notice thereof to each Holder. The Corporation shall
not be obligated to issue to any such Holder certificates evidencing the shares of Common
Stock issuable upon such conversion unless certificates evidencing the shares of Series A-1
Preferred Stock duly endorsed or an affidavit of lost certificates, in each case, in form
reasonably satisfactory
to the Corporation are delivered either to the Corporation or any transfer agent of the
Corporation.

 

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(c) Mechanics of Conversion. The number of shares of Common Stock to which a Holder
shall be entitled to upon conversion pursuant to this paragraph 5 shall be determined by
dividing (x) (1) if on or prior to October 22, 2009, $1,065 multiplied by the number of
 shares of Series A-1 Preferred Stock to be converted as of the Conversion Date or (2) if
after October 23, 2009, the Liquidation Preference of the shares of Series A-1 Preferred
Stock to be converted as of the Conversion Date by (ii) the Conversion Price in effect at
the close of business on the Conversion Date (determined as provided in this paragraph 5).

Any Holder may exercise its conversion right specified in subparagraph 5(a) by
surrendering to the Corporation or any transfer agent of the Corporation the certificate or
certificates or an affidavit of lost certificates, in each case, duly endorsed in form
reasonably satisfactory to the Corporation for the shares to be converted, accompanied by
written notice substantially in the form set forth in Annex A.

Conversion pursuant to exercise of the conversion right specified in subparagraph 5(a)
shall be deemed to have been effected prior to the opening of the Trading Market (or if the
Common Stock is not then listed on a national securities exchange then at 8:00 A.M. New York
time) on the date when delivery of certificates for shares is made and such date is referred
to herein as the “Optional Conversion Date”.

As promptly as practicable thereafter (and after surrender of the certificate or
certificates representing shares of Series A-1 Preferred Stock to the Corporation or any
transfer agent of the Corporation in the case of conversions pursuant to subparagraph 5(a)),
the Corporation shall issue and deliver to or upon the written order of such Holder a
certificate or certificates for the number of full shares of Common Stock to which such
Holder is entitled.

The Person in whose name the certificate or certificates for Common Stock are to be
issued shall be deemed to have become a holder of record of such Common Stock on the
applicable Conversion Date. Upon conversion of only a portion of the number of shares
covered by a certificate representing shares of Series A-1 Preferred Stock surrendered for
conversion (in the case of conversion pursuant to subparagraph 5(a)), the Corporation shall
issue and deliver to or upon the written order of the Holder of the certificate so
surrendered for conversion, at the expense of the Corporation, a new certificate covering
the number of shares of Series A-1 Preferred Stock representing the unconverted portion of
the certificate so surrendered.

(d) Fractional Shares. No fractional shares of Common Stock or scrip shall be issued
upon conversion of shares of Series A-1 Preferred Stock. If more than one share of Series
A-1 Preferred Stock shall be surrendered for conversion at any one time by the same Holder,
the number of full shares of Common Stock issuable upon conversion thereof shall be computed
on the basis of the aggregate number of shares of Series A-1 Preferred Stock so surrendered.
Instead of any fractional shares of Common
Stock which would otherwise be issuable upon conversion of any shares of Series A-1
Preferred Stock, the Corporation shall round such fractional share up to the next whole
share of Common Stock.

 

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(e) Conversion Price Adjustments. The Conversion Price shall be subject to adjustment
from time to time as follows:

	 	(i)	 	Stock Dividends, Subdivisions or Combinations. If the
Corporation shall (A) declare a dividend or make a distribution on its Common
Stock in shares of its Common Stock, (B) subdivide the outstanding shares of
Common Stock into a greater number of shares of Common Stock, or (C) combine
the outstanding Common Stock into a smaller number of shares of Common Stock,
the Conversion Price in effect at the time of the record date for such dividend
or distribution or the effective date of such subdivision or combination shall
be proportionately adjusted so that the holder of any shares of Series A-1
Preferred Stock surrendered for conversion after such date shall be entitled to
receive the number of shares of Common Stock which he would have owned or been
entitled to receive had such Series A-1 Preferred Stock been converted
immediately prior to such date and assuming the Series A-1 Preferred Stock is
convertible in its entirety without regard to the ability of the Corporation to
issue Common Stock upon such conversion and without regard to the Maximum
Authorized Amount. Successive adjustments in the Conversion Price shall be
made whenever any event specified above shall occur.
	 
	 	(ii)	 	Consolidation, Merger, Sale, Lease, Conveyance or
Reclassification. In case of any consolidation with or merger of the
Corporation with or into another corporation, or in case of any sale, lease or
conveyance to another corporation of the assets of the Corporation as an
entirety or substantially as an entirety, or any reclassification of the
capital stock of the Corporation, each share of Series A-1 Preferred Stock
shall after the date of such consolidation, merger, sale, lease, conveyance or
reclassification be convertible into the number of shares of stock or other
securities or property (including cash) to which the Common Stock issuable (at
the time of such consolidation, merger, sale, lease, conveyance or
reclassification and assuming the Series A-1 Preferred Stock is convertible in
its entirety without regard to the ability of the Corporation to issue Common
Stock upon such conversion and without regard to the Maximum Authorized Amount)
upon conversion of such share of Series A-1 Preferred Stock would have been
entitled upon such consolidation, merger, sale, lease, conveyance or
reclassification; and in any such case, if necessary where there is a change in
or distribution with respect to the Common Stock, the provisions set forth
herein with respect to the rights and interests thereafter of the Holders shall
be appropriately adjusted so as to be applicable, as nearly as may reasonably
be, to any shares of stock or other securities or property thereafter
deliverable on the conversion of the shares of Series A-1 Preferred Stock. If
the Corporation shall propose to
take any action of the type described in this clause (ii), the Corporation
shall give notice to each Holder, which notice shall specify the record
date, if any, with respect to any such action and the approximate date on
which such action is to take place. Such notice shall also set forth such
facts with respect thereto as shall be reasonably necessary to indicate the
effect of such action (to the extent such effect may be known on the date of
such notice) on the Conversion Price and the number, kind or class of shares
or other securities or property which shall be deliverable upon conversion
of shares of Series A-1 Preferred Stock. In the case of any action that
would require the fixing of a record date, such notice shall be given at
least ten (10) days prior to the date so fixed, and in case of all other
action, such notice shall be given at least fifteen (15) days prior to
taking such proposed action.

 

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	 	(iii)	 	Statement Regarding Adjustments. Whenever the Conversion
Price shall be adjusted, the Corporation shall forthwith file, at the office of
any transfer agent for the Series A-1 Preferred Stock and at the principal
office of the Corporation, a statement showing in reasonable detail the facts
requiring such adjustment and the Conversion Price that shall be in effect
after such adjustment, and the Corporation shall also cause a copy of such
statement to be sent to each Holder. Each such statement shall be signed by
the Chief Financial Officer of the Corporation.

(f) Notice to Holders. All notices permitted or required to be sent by the Corporation
to the Holders pursuant to this Certificate of Designations shall be sent by overnight
courier or first class certified mail, postage prepaid, or by means of electronic
transmission (if on the same day the Corporation sends a conforming copy of such notice by a
recognized overnight delivery service (charges prepaid)) to the Holders at the addresses
appearing on the Corporation’s records.

(g) Treasury Stock. The sale or other disposition of any Common Stock theretofore held
in the Corporation’s treasury shall be deemed to be an issuance thereof.

(h) Costs. The Corporation shall pay all documentary, stamp, transfer or other
transactional taxes attributable to the issuance or delivery of shares of Common Stock upon
conversion of any shares of Series A-1 Preferred Stock; provided that the
Corporation shall not be required to pay any taxes which may be payable in respect of any
transfer and involved in the issuance or delivery of any certificate for such shares in a
name other than that of the Holder of the shares of Series A-1 Preferred Stock in respect of
which such shares are being issued, and no such issue or delivery shall be made unless and
until the Person requesting such issue has paid to the Corporation the amount of any such
tax, or has established to the reasonable satisfaction of the Corporation that such tax has
been or will be paid.

(i) Shares to be Fully Paid. The Corporation will take all action necessary to assure
that all shares of Common Stock issued upon the conversion of the Series A-1 Preferred Stock
will be duly and validly issued, fully paid and nonassessable, free and
clear of all Encumbrances and shall not be subject to preemptive rights or similar
rights of stockholders, and without limiting the generality of the foregoing, the par value
per share of the Common Stock is at all times equal to or less than the then effective
Conversion Price.

 

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(j) Reservation of Shares. Prior to the Stockholder Approval and the filing with, and
acceptance by the Secretary of State of the State of Delaware of the Charter Amendment, the
Corporation shall reserve for the purpose of issuance upon conversion of the Series A-1
Preferred Stock and the Series B Preferred Stock such number of shares of Common Stock up to
the Maximum Authorized Amount for all Holders and all holders of the Series B Preferred
Stock. Thereafter, and as long as any Series A-1 Preferred Stock remains outstanding, the
Corporation will take all action necessary to assure that it has authorized, and reserved
for the purpose of issuance upon conversion of the Series A-1 Preferred Stock, a sufficient
number of shares of Common Stock to provide for conversion of the Series A-1 Preferred Stock
in full.

(k) Approvals. The Corporation, subject to obtaining the Stockholder Approval and
filing the Charter Amendment with the Secretary of State of the State of Delaware, will take
all action necessary to assure that shares of Common Stock may be validly and legally issued
upon conversion of the Series A-1 Preferred Stock and in compliance with the requirements of
all Laws and any securities exchange upon which the Common Stock may be listed. The
Corporation will not take any action that could result in any adjustment hereunder if the
total number of shares of Common Stock issuable after such action upon conversion or
redemption of the Series A-1 Preferred Stock in full, together with all shares of Common
Stock then outstanding and all shares of Common Stock then issuable upon exercise of all
options or warrants and upon conversion of all convertible securities then outstanding,
would exceed the total number of shares of Common Stock then authorized by the Certificate
of Incorporation.

6. Voting Rights.

(a) In addition to the special voting rights provided below and by applicable Law, the
Holders shall be entitled to vote upon all matters upon which holders of the Common Stock
have the right to vote, and shall be entitled to the number of votes equal to the largest
number of full shares of Common Stock into which such shares of Series A-1 Preferred Stock
could be converted pursuant to the provisions of paragraph 5 hereof at the record date for
the determination of the stockholders entitled to vote on such matters and assuming the
Series A-1 Preferred Stock is convertible in its entirety without regard to the ability of
the Corporation to issue Common Stock upon such conversion and without regard to the Maximum
Authorized Amount, or, if no such record date is established, at the date such vote is taken
or any written consent of stockholders is solicited, such votes to be counted together with
all other shares of capital stock having general voting powers and not separately as a
class. In all cases where the Holders have the right to vote separately as a class, such
Holders shall be entitled to one vote for each such share held by them respectively.

 

12

 

(b) So long as the Permitted Holders in the aggregate own at least 50% of the shares of
Series A-1 Preferred Stock issued on the Issue Date, the Corporation shall not and shall not
permit any of its subsidiaries to without the consent of the Holders of a majority of shares
of Series A-1 Preferred Stock then outstanding, given in writing or by vote at a meeting of
Holders called for such purpose, directly or indirectly:

	 	(i)	 	increase the authorized number of shares of
Series A-1 Preferred Stock;
	 
	 	(ii)	 	conduct or engage in any business other than a
Related Business;
	 
	 	(iii)	 	on or before December 19, 2013, merge or
consolidate into or with another Person or Persons unless the holders
of a majority of the Voting Stock in the Corporation (measured by
voting power rather than the number of shares and without distinction
as to any series or class of Voting Stock) immediately prior to such
transaction continue to hold a majority of the Voting Stock (measured
by voting power rather than the number of shares and without
distinction as to any series or class of Voting Stock) in the surviving
Person immediately after such transaction;
	 
	 	(iv)	 	sell, lease, exchange or otherwise dispose of
(in each case, in one transaction or a series of related transactions)
(i) on or before December 19, 2013, all or substantially all of the
assets of the Corporation and its Subsidiaries (determined on a
consolidated basis) or (ii) assets of the Corporation or of its
Subsidiaries with a fair market value (individually or in the
aggregate) of $25,000,000 or more;
	 
	 	(v)	 	purchase or otherwise acquire any material
amount of the stock or assets of another company in one transaction or
a series of related transactions having an aggregate value of more than
$15,000,000;
	 
	 	(vi)	 	increase the number of directors that comprise
the Board beyond eleven (11);
	 
	 	(vii)	 	issue or sell any capital stock (or securities
convertible into capital stock) of the Corporation or any Subsidiary
other than (A) Excluded Stock, (B) capital stock, the proceeds from the
sale of which are concurrently used to redeem the Series A-1 Preferred
Stock in full, (C) up to 10,000,000 shares of Common Stock issued at a
price per share below $3.00 (in each case, subject to adjustment for
stock dividends, subdivisions, reclassifications, combinations or
similar type events) and (D) shares of Common Stock issued at a price
per share at or above $3.00 (subject to adjustment for stock dividends,
subdivisions, reclassifications, combinations or similar type events);

 

13

 

	 	(viii)	 	pay, declare or set aside any sums or other property for the payment
of any dividends on, or make any other distributions in respect of
(including by merger or otherwise), any shares of capital stock of the
Corporation or any Subsidiary (other than the Series A-1 Preferred
Stock);
	 
	 	(ix)	 	redeem or repurchase (including by merger or
otherwise) any capital stock of the Corporation or any Subsidiary
(other than the Series A-1 Preferred Stock) other than (A) purchases of
up to 10,000,000 shares of Common Stock in the aggregate and (B)
purchases of up to 2,000,000 shares of Common Stock in the aggregate
pursuant to bona fide employee benefit plans or arrangements approved
by the Board from employees of the Corporation who are not directors or
executive officers of the Corporation upon termination of employment
with the Corporation (in each case, subject to adjustment for stock
dividends, subdivisions, reclassifications, combinations or similar
type events);
	 
	 	(x)	 	amend the Certificate of Incorporation (whether
by amendment, amalgamation, merger or otherwise) in a manner that would
require stockholder approval or amend the by-laws of the Corporation,
in a manner that materially adversely affects the rights of the
Holders;
	 
	 	(xi)	 	create, reclassify any shares of capital stock
of the Corporation into or issue, any shares of capital stock having
any preference or priority as to dividends or assets upon any
Liquidation Event superior to, or on a parity with, any preference or
priority of the Series A-1 Preferred Stock (it being understood and
agreed that this clause (xi) shall not prohibit the issuance of capital
stock, the proceeds from the sale of which are concurrently used to
redeem the Series A-1 Preferred Stock in full);
	 
	 	(xii)	 	adopt any Budget or approve or permit any
material variances therefrom;
	 
	 	(xiii)	 	make annual capital expenditures (including capital expenditures
included in the Budget) in excess of $15,000,000 in the aggregate;
	 
	 	(xiv)	 	incur, guarantee or prepay any Debt that would
cause the Total Debt Ratio (each as defined in the Senior Notes
Agreement as in effect on June 18, 2008) to exceed 5.00 to 1;
	 
	 	(xv)	 	take any action that would cause an Event of
Default under any agreement or instrument relating to indebtedness for
borrowed money in excess of $10,000,000;

 

14

 

	 	(xvi)	 	take any action to liquidate, dissolve or wind
up the Corporation;
	 
	 	(xvii)	 	hire a new Chief Executive Officer of the Corporation;
	 
	 	(xviii)	 	make any material changes in accounting standards or policies other
than as required by generally accepted accounting principles; and
	 
	 	(xix)	 	enter into any agreement to do any of the
foregoing or cause or permit any Subsidiary of the Corporation directly
or indirectly to do any of the foregoing.

(c) So long as the Permitted Holders in the aggregate own at least 50% of the shares of
Series A-1 Preferred Stock issued on the Issue Date, on or prior to the date that is thirty
(30) days before the end of each calendar year, the Chief Executive Officer of the
Corporation shall present to the Board and Gores Radio Holdings, LLC an annual operating
budget for the following calendar year. The budget as presented by the Chief Executive
Officer of the Corporation shall become the budget (the “Budget”) for such calendar
year only when approved in accordance with subparagraph 6(b). If the Budget is not approved
for any calendar year prior to March 1 of such year in accordance with subparagraph 6(b),
then the Budget for that calendar year shall be the Budget from the prior calendar year plus
5% (excluding the prior year’s extraordinary and nonrecurring items).

7. Preemptive Rights.

(a) For so long as the Permitted Holders own in the aggregate at least 50% of the
Series A-1 Preferred Stock issued on the Issue Date, before any issuance by the Corporation
of any Voting Stock (other than Excluded Stock) at a price less than $4.00 per share
(subject to adjustment for stock dividends, subdivisions, reclassifications, combinations or
similar type events), the Corporation shall give written notice (a “Preemptive
Notice”) thereof to each Holder. The Preemptive Notice shall:

	 	(i)	 	specify the material terms of the security or
securities to be issued (the “Preemptive Shares”), the proposed
purchasers, the date of issuance (which date shall not be less than ten
(10) nor more than twenty (20) Business Days after the date of delivery
of the Preemptive Notice), the consideration that the Corporation will
receive therefor and any other material term or condition of such
issuance; and
	 
	 	(ii)	 	contain an offer to sell to each Holder
Preemptive Shares at the same price and for the same consideration to
be paid by the purchaser, in an amount so that each such Holder shall
maintain its fully diluted percentage interest in the total voting
power of the Corporation.

 

15

 

(b) Each such Holder shall be entitled, by written notice to the Corporation not less
than three (3) Business Days prior to the proposed date of issuance, to elect to purchase
all or part of the Preemptive Shares offered to such Holder in the Preemptive Notice on the
terms and conditions set forth therein. In the event that any such offer is accepted by any
Holder, the Corporation shall sell to such Holder, and such Holder shall purchase from the
Corporation for the consideration and on the terms set forth in the Preemptive Notice the
securities that such Holder has elected to purchase on the same day it issues (or would have
issued) the Preemptive Shares.

(c) If the Corporation does not proceed with the proposed issuance of capital stock
specified in the Preemptive Notice on the terms and conditions set forth therein, then the
provisions of this paragraph 7 shall again be in effect with respect to any subsequent
issuance.

8. Headings of Subdivisions. The headings of the various subdivisions hereof are for
convenience of reference only and shall not affect the interpretation of any of the provisions
hereof.

9. Severability of Provisions. If any right, preference or limitation of the Series A-1
Preferred Stock set forth in this resolution (as such resolution may be amended from time to time)
is invalid, unlawful or incapable of being enforced by reason of any rule of Law or public policy,
all other rights, preferences and limitations set forth in this resolution (as so amended) which
can be given effect without the invalid, unlawful or unenforceable right, preference or limitation
shall, nevertheless, remain in full force and effect, and no right, preference or limitation herein
set forth shall be deemed dependent upon any other such right, preference or limitation unless so
expressed herein.

10. Status of Reacquired Shares. Shares of Series A-1 Preferred Stock that have been issued
and reacquired in any manner shall (upon compliance with any applicable provisions of the Laws of
the State of Delaware) have the status of authorized and unissued shares of Preferred Stock
issuable in series undesignated as to series and, subject to the provisions hereof, may be
redesignated and reissued.

11. Amendment. No provision of this Certificate of Designations may be amended, except in a
written instrument signed by the Corporation and Holders of a majority of the shares of Series A-1
Preferred Stock then outstanding. Any of the rights of the Holders set forth herein may be waived
by the affirmative vote of Holders of a majority of the shares of Series A-1 Preferred Stock then
outstanding. No waiver of any default with respect to any provision, condition or requirement of
this Certificate of Designations shall be deemed to be a continuing waiver in the future or a
waiver of any subsequent default or a waiver of any other provision, condition or requirement
hereof, nor shall any delay or omission of either party to exercise any right hereunder in any
manner impair the exercise of any such right.

12. Redemption of Series B Preferred Stock.

(a) The Corporation shall not redeem, purchase or otherwise acquire, and shall not
permit any Subsidiary to redeem, purchase or otherwise acquire, any shares of
the Series B Preferred Stock unless it concurrently offers to redeem the same
proportion (based on Liquidation Preference) of the Series A-1 Preferred Stock on the same
terms and conditions and at the same time (the “Modified Redemption Price”);
provided that in no case will a conversion of the Series B Preferred Stock into
Common Stock be deemed to be a redemption, purchase or other acquisition covered by this
paragraph 12.

 

16

 

(b) Notice of any such offer to redeem shall be sent by or on behalf of the Corporation
to the Holders not less than 10 Business Days nor more than 45 days prior to the anticipated
date of redemption (i) notifying such Holders of the Corporation’s offer to redeem such
 shares and of the date of redemption, and (ii) stating the place or places at which the
 shares presented for redemption shall, upon presentation and surrender of the certificates
evidencing such shares, be redeemed, and the Modified Redemption Price therefor. To
exercise its right to have its shares redeemed, a Holder must send written notice to the
Corporation not less than 2 Business Days prior to the date of redemption set forth in the
Corporation’s notice, indicating its election to participate in the redemption.

(c) If a notice of redemption shall have been given as provided herein, and the
Corporation shall not default in the payment of the Modified Redemption Price, then (i) each
Holder of shares presented for redemption shall be entitled to all preferences and relative
and other rights accorded by this resolution until and including the time of redemption and
(ii) from and after the time of redemption the shares presented for redemption shall no
longer be deemed to be outstanding, and all rights of the Holders of such shares shall cease
and terminate, except the right of the Holders of such shares, upon surrender of
certificates therefor, to receive amounts to be paid hereunder.

(d) Any such offer to redeem shall be made ratably to all holders of Series A-1
Preferred Stock.

13. Modification of Series B Preferred Stock. The Corporation shall not amend or otherwise
change the Liquidation Preference, Dividend Rate or Conversion Price of the Series B Preferred
Stock (in each case, as defined in the Certificate of Designations applicable to the Series B
Preferred Stock) unless (x) it shall have offered to the holders of the Series A-1 Preferred Stock
the right to have a corresponding change made to this Certificate of Designations effective at the
same time that such amendment or other change is effective as to the Series B Preferred Stock and
(y) if the Holders of a majority of the Series A-1 Preferred Stock then outstanding elect to have
such change effected, shall have effected such amendment or other change, simultaneously with such
amendment or other change to the Certificate of Designations applicable to the Series B Preferred
Stock.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOLLOWS]

 

17

 

IN WITNESS WHEREOF, Westwood One, Inc. has caused this Certificate of Designations to be duly
executed as of this 23nd day of April, 2009.

	 	 	 	 	 
	 	WESTWOOD ONE, INC.

 	 
	 	By:  	/s/ David Hillman
 	 
	 	 	Name:  	David Hillman 	 
	 	 	Title:  	Chief Administrative Officer,

Secretary and General Counsel 	 

[Signature Page to COD]

 

 

Annex A

NOTICE TO EXERCISE CONVERSION RIGHT

The undersigned, being a holder of the 7.50% Series A-1 Convertible Preferred Stock of
Westwood One, Inc. (the “Series A-1 Preferred Stock”) exercises the right to convert
                                         outstanding shares of Series A-1 Preferred Stock on              
                           ,                     , into shares of
Common Stock of Westwood One, Inc. (the “Corporation”), [upon the occurrence of [name consolidation
or merger of the Corporation or sale of all or substantially all of the assets of the Corporation
or reorganization of the Corporation] on or prior to [insert date]] in accordance with the terms of
the shares of Series A-1 Preferred Stock, and directs that the shares issuable and deliverable upon
the conversion be issued and delivered in the denominations indicated below to the registered
holder hereof unless a different name has been indicated below. The undersigned acknowledges and
agrees that if the number of authorized shares of Common Stock under the Certificate of
Incorporation is not sufficient to permit the Corporation to issue all of the shares of Common
Stock to which the undersigned is entitled upon conversion of all of the undersigned’s shares of
Series A-1 Preferred Stock, the undersigned may only convert the number of shares of Series A-1
Preferred Stock up to the Maximum Authorized Amount (as defined in the Series A-1 Certificate of
Designations). Capitalized terms used but not defined herein shall have the respective meanings
ascribed to them in the Purchase Agreement, dated as of April 23, 2009, among the Corporation and
the Purchasers.

Dated: [At least one Business Day prior to the date fixed for conversion]

Fill in for registration of

shares of Common Stock

if to be issued otherwise

than to the registered

holder:

                                                            

Name

                                                            

Address

	 	 	 
	                                                            

	 	                                                            
	Please print name and

	 	(Signature)
	address, including postal

code numberExhibit 4.3

Exhibit 4.3

WESTWOOD ONE, INC.

 

CERTIFICATE OF DESIGNATIONS

OF

8.0% SERIES B CONVERTIBLE PREFERRED STOCK

(Pursuant to Section 151 of the Delaware General Corporation Law)

 

Westwood One, Inc., a Delaware corporation (the “Corporation”), in accordance with the
provisions of Section 103 of the Delaware General Corporation Law (the “DGCL”) does hereby
certify that, in accordance with Section 141(c) of the DGCL, the following resolution was duly
adopted by the Board of Directors of the Corporation (the “Board”) as of April 20, 2009:

RESOLVED, that the Board pursuant to authority expressly vested in it by the provisions of the
Restated Certificate of Incorporation of the Corporation, as amended (the “Certificate of
Incorporation”), hereby authorizes the issuance of one series of Preferred Stock designated as
the 8.0% Series B Convertible Preferred Stock (the “Series B Preferred Stock”), par value
$0.01 per share, of the Corporation to consist of 59,962 shares of Series B Preferred Stock, and
hereby fixes the powers, preferences, rights, qualifications, limitations and restrictions thereof
(in addition to any provisions set forth in the Certificate of Incorporation that are applicable to
the Preferred Stock of all classes and series) as follows:

1. Certain Definitions. Unless the context otherwise requires, the terms defined in this
paragraph 1 shall have, for all purposes of this resolution, the meanings herein specified.

“Affiliate” of a Person means any other Person that, directly or indirectly through one or
more intermediaries, controls or is controlled by or is under common control with the first Person.

“ADTV” means, on any date, the worldwide average daily dollar trading volume of the Common
Stock during the 30 consecutive Business Days prior to such date (excluding for the purposes of
this definition any trading volume attributed to the Gores Investors disclosed to the Company at
the request of the Board).

“Business Day” means any day except Saturday, Sunday and any day on which banking institutions
in New York City are authorized or required by Law or other governmental action to close.

“Certificate of Designations” means this Certificate of Designations of the Corporation’s 8.0%
Series B Convertible Preferred Stock.

 

 

 

“Charter Amendment” means an amendment of the Certificate of Incorporation to increase the
number of authorized shares of Common Stock to permit the conversion of all outstanding shares of
Series A-1 Preferred Stock and Series B Preferred Stock into Common Stock.

“Common Stock” means the Corporation’s Common Stock, par value $0.01 per share, and any other
class or series of the Corporation’s capital stock, howsoever designated, authorized after the
Issue Date, that has the right (subject always to prior rights of any class or series of preferred
stock) to participate in the distribution of the assets and earnings of the Corporation without
limit as to per share amount, excluding participating preferred stock.

“Conversion Date” means, as applicable, the Mandatory Conversion Date and/or the Optional
Conversion Date.

“Conversion Price” means the price per share of Common Stock used to determine the number of
shares of Common Stock deliverable upon conversion of the Series B Preferred Stock, which price
shall initially be $0.03443, subject to adjustment in accordance with the provisions of paragraph 4
below.

“Corporation” has the meaning set forth in the first introductory paragraph above.

“DGCL” has the meaning set forth in the first introductory paragraph above.

“Dividend Date” means March 31, June 30, September 30 and December 31 of each year, beginning
June 30, 2009.

“Dividend Period” means (a) the period beginning on the Issue Date and ending on the first
Dividend Date and (b) each quarterly period thereafter between Dividend Dates.

“Dividend Rate” means (a) from the Issue Date to June 19, 2013, 8.0% and (b) from and after
June 20, 2013, 15.0%.

“Encumbrance” means any charge, claim, community property interest, condition, easement,
covenant, warrant, demand, encumbrance, equitable interest, lien, mortgage, option, purchase right,
pledge, security interest, right of first refusal or other right of third parties or restriction of
any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any
other attribute of ownership.

“Gores” means Gores Radio Holdings, LLC, a Delaware limited liability company and any
successor thereto.

“Gores Investors” means Gores and its Related Persons.

“Governmental Authority” means any United States federal, state, provincial, supranational,
county or local or any foreign government, governmental, regulatory or administrative authority,
agency, self-regulatory body, instrumentality or commission, and any court, tribunal, or judicial
or arbitral body (including private bodies) and any political or other subdivision, department or
branch of any of the foregoing.

 

2

 

“Holder” means any record holder of Series B Preferred Stock as such shall appear upon the
stock register of the Corporation.

“Issue Date” means April 23, 2009.

“Junior Stock” means the Common Stock and any other class or series of capital stock of the
Corporation ranking junior to the Series B Preferred Stock both as to dividends and as to
distributions upon a Liquidation Event.

“Laws” means any statute, law (including common law), rule, ordinance, code or regulation,
Order, interpretation, guidance, directive, policy statement or opinion of any Governmental
Authority.

“Liquidation Event” means any termination, liquidation, dissolution or winding up of the
Corporation, either voluntary or involuntary. At the election of the Holders of a majority of the
then outstanding shares of Series B Preferred Stock, (a) the consolidation or merger of the
Corporation into or with another Person or Persons (other than any such transactions in which the
holders of a majority of the Voting Stock in the Corporation (measured by voting power rather than
the number of shares and without distinction as to any series or class of Voting Stock) immediately
before such transaction hold a majority of the Voting Stock in the surviving Person (measured by
voting power rather than the number of shares and without distinction as to any series or class of
Voting Stock) immediately after such transaction), or (b) the sale of all or substantially all of
the assets of the Corporation and its Subsidiaries (determined on a consolidated basis) shall each
be deemed a Liquidation Event.

“Liquidation Preference” means, on any date, the sum of (a) the Subscription Price plus (b)
accrued dividends thereon through such date.

“Mandatory Conversion Date” has the meaning set forth in subparagraph 4(b).

“Maximum Authorized Amount” means, on any date, (A) the number of authorized shares of Common
Stock under the Certificate of Incorporation that have not been issued as of such date less (B) all
of the shares of Common Stock underlying all of the then outstanding options, warrants and
convertible securities of the Corporation, other than the Series A-1 Preferred Stock and the Series
B Preferred Stock.

“Minimum Amount” means 2,998 shares of Series B Preferred Stock.

“Non-Gores Holder” means (a) any Holder on the Issue Date other than a Gores Investor and (b)
each other Holder that is a Related Person of such Holder.

“Optional Conversion Date” has the meaning set forth in subparagraph 4(c).

“Order” means any award, writ, stipulation, determination, decision, injunction, judgment,
order, decree, ruling, subpoena or verdict entered, issued, made or rendered by, or any contract
with, any Governmental Authority.

 

3

 

“Parity Stock” means the Series A-1 Preferred Stock and any other class or series of capital
stock of the Corporation ranking on a parity with the Series B Preferred Stock both as to dividends
and as to distributions upon a liquidation, dissolution or winding up of the Corporation.

“Person” means any individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
Governmental Authority or other entity of any kind.

“Pro Rata Portion” means, on any date with respect to any Person, the product of (a) a
fraction, (i) the numerator of which is the number of shares of Common Stock underlying the Series
A-1 Preferred Stock and/or Series B Preferred Stock proposed to be converted by such Person on
such date and (ii) the denominator of which is the number of shares of Common Stock underlying the
Series A-1 Preferred Stock and Series B Preferred Stock outstanding on such date, and (b) the
Maximum Authorized Amount on such date.

“Purchasers” means Gores Radio Holdings, LLC (in each case together with its designees that
are Affiliates of The Gores Group, LLC).

“Redemption Price” has the meaning set forth in paragraph 10.

“Related Person” means with respect to any Purchaser (x) any Affiliate of such Purchaser and
any officer, director, partner or member of such Purchaser or any of its Affiliates and (y) any
investment fund, investment partnership, investment account or other investment Person whose
investment manager, investment advisor, managing member or general partner is (i) such Purchaser or
an Affiliate of such Purchaser or (ii) any officer, director, partner or member of such Purchaser
or any of its Affiliates.

“Required Holders” means (i) the Holders of a majority of the shares of Series B Preferred
Stock then outstanding, (ii) for so long as the Gores Investors hold the Minimum Amount, Gores and
(iii) for so long as the Non-Gores Holders hold the Minimum Amount, the Holders of a majority of
the Series B Preferred Stock then outstanding held by the Non-Gores Holders.

“Series A-1 Preferred Stock” means the 7.50% Series A-1 Convertible Preferred Stock, par value
$0.01 per share, of the Corporation.

“Series B Preferred Stock” has the meaning set forth in the second paragraph of this
Certificate of Designations.

“Stockholder Approval” means the affirmative vote of the holders of at least 75% of the voting
power of all outstanding shares of capital stock of the Corporation having general voting power,
regardless of class and voting together as a single class, for the approval of the Charter
Amendment.

“Subscription Price” means $1,000 per share of Series B Preferred Stock.

 

4

 

“Subsidiary” means (a) a corporation more than 50% of the combined voting power of the
outstanding Voting Stock of which is owned, directly or indirectly, by the Corporation, (b) a
partnership of which the Corporation, directly or indirectly, is the general partner and has the
power to direct the policies, management and affairs or (c) any other Person (other than a
corporation) in which the Corporation, directly or indirectly, has at least a majority ownership
interest or majority voting power.

“Trading Day” means (a) any day on which the Common Stock is listed and traded on the Trading
Market, or (b) if the Common Stock is not then listed and traded on the Trading Market, then any
Business Day.

“Trading Market” means any national securities exchange, if the Common Stock is then listed on
such exchange.

“Voting Stock” means, with respect to any Person, capital stock of such Person that ordinarily
has voting power for the election of directors (or persons performing similar functions) of such
Person.

2. Dividends.

(a) The Holders shall be entitled to receive dividends at the Dividend Rate per annum,
compounded quarterly. Such dividends shall be cumulative from the Issue Date and shall be added
daily to the Liquidation Preference. The dividends per share of Series B Preferred Stock for any
full quarterly period shall be computed by multiplying the Dividend Rate for such Dividend Period
by the Liquidation Preference (determined as of the first day of such Dividend Period) per share
and dividing the result by four. Dividends payable for any period less than a full quarterly
Dividend Period shall be computed on the basis of a 360-day year of twelve 30-day months and the
actual number of days elapsed for any period less than one month.

(b) In addition to the dividends specified in subparagraph 2(a) above, if dividends are
declared or paid on the Common Stock, then such dividends shall be declared and paid pro rata on
the Common Stock and the Series B Preferred Stock, treating each share of Series B Preferred Stock
as the greatest whole number of shares of Common Stock then issuable upon conversion thereof
pursuant to paragraph 4 below and assuming the Series B Preferred Stock is convertible in its
entirety without regard to the ability of the Corporation to issue Common Stock upon such
conversion and without regard to the Maximum Authorized Amount.

(c) So long as any shares of Series B Preferred Stock shall be outstanding, the Corporation
shall not (i) declare or pay any dividend or make any distribution on any Junior Stock, whether in
cash, property or otherwise (other than dividends payable in shares of the class or series upon
which such dividends are declared or paid, or payable in shares of Common Stock with respect to
Junior Stock for which an adjustment is made pursuant to subparagraph 4(e)(i) hereof) or (ii)
purchase or redeem, or permit any Subsidiary to purchase or redeem, any Junior Stock (except by
conversion into or in exchange solely for shares of Common Stock), or pay or make available any
monies for a sinking fund for the purchase or redemption of any Junior Stock, other than up to
2,000,000 shares of Common Stock from employees of the Corporation
who are not directors or executive officers of the Corporation upon termination of employment
with the Corporation.

 

5

 

3. Distributions Upon Liquidation Event. Upon any Liquidation Event, before any distribution
or payment shall be made to the holders of Junior Stock, the Holders shall be entitled to be paid,
to the extent possible the greater of (a) the Liquidation Preference on the date of determination,
and (b) the amount that would be payable to the Holders if such Holders had converted all
outstanding shares of Series B Preferred Stock into shares of Common Stock immediately prior to
such Liquidation Event assuming the Series B Preferred Stock is convertible in its entirety without
regard to the ability of the Corporation to issue Common Stock upon such conversion and without
regard to the Maximum Authorized Amount. If such payment shall have been made in full to the
Holders, and if payment shall have been made in full to the holders of any Parity Stock of all
amounts to which such holders shall be entitled, the remaining assets and funds of the Corporation
shall be distributed among the holders of Junior Stock, according to their respective shares and
priorities. If, upon any such Liquidation Event, the net assets of the Corporation distributable
among the Holders and the holders of all outstanding shares of any Parity Stock shall be
insufficient to permit the payment in full to such holders of the preferential amounts to which
they are entitled, then the entire net assets of the Corporation remaining shall be distributed
among the Holders and the holders of any Parity Stock ratably in proportion to the full amounts to
which they would otherwise be respectively entitled. After payment to the holders of Series B
Preferred Stock of the full amount to which they are entitled under this paragraph 3, such holders
of Series B Preferred Stock shall have no right or claim to any assets of the Corporation.

4. Conversion Rights. The Series B Preferred Stock shall be convertible into Common Stock as
follows:

(a) Conversion at the Option of Holder. Subject to and upon compliance with the provisions of
this paragraph 4, any Holder shall have the right at such Holder’s option, at any time or from time
to time, to convert such Holder’s shares of Series B Preferred Stock into a number of fully paid
and nonassessable shares of Common Stock calculated in accordance with subparagraph (c) below.
Notwithstanding the foregoing, if the number of shares of Common Stock issuable with respect to all
shares of Series A-1 Preferred Stock and Series B Preferred Stock surrendered for conversion on any
date exceeds the Maximum Authorized Amount on such date, each holder thereof may only convert the
number of shares of Series A-1 Preferred Stock and Series B Preferred Stock so that the total
number of shares of Common Stock so issuable is no greater than such holder’s Pro Rata Portion.

(b) Mandatory Conversion. On the first date on which there are a number of unissued shares of
Common Stock authorized under the Certificate of Incorporation sufficient to permit conversion of
all of the then outstanding shares of Series B Preferred Stock and Series A-1 Preferred Stock (the
“Mandatory Conversion Date”), each outstanding share of Series B Preferred Stock shall
automatically be converted (simultaneously with the conversion of each outstanding share of Series
A-1 Preferred Stock, into Common Stock) without any further act of the Corporation or its
stockholders (and whether or not the certificates representing such shares are surrendered to the
Corporation or its transfer agent), into fully paid and nonassessable shares
of Common Stock based on the Conversion Price then in effect. As soon as reasonably
practicable following the Mandatory Conversion Date, the Corporation shall deliver a written notice
thereof to each Holder. The Corporation shall not be obligated to issue to any such Holder
certificates evidencing the shares of Common Stock issuable upon such conversion unless
certificates evidencing the shares of Series B Preferred Stock duly endorsed or an affidavit of
lost certificates, in each case, in form reasonably satisfactory to the Corporation are delivered
either to the Corporation or any transfer agent of the Corporation.

 

6

 

(c) Mechanics of Conversion. The number of shares of Common Stock to which a Holder shall be
entitled to upon conversion pursuant to this paragraph 4 shall be determined by dividing (x) (1) if
on or prior to October 22, 2009, the Subscription Price multiplied by the number of shares of
Series B Preferred Stock to be converted as of the Conversion Date or (2) if after October 23,
2009, the Liquidation Preference of the shares of Series B Preferred Stock to be converted as of
the Conversion Date by (ii) the Conversion Price in effect at the close of business on the
Conversion Date (determined as provided in this paragraph 4).

Any Holder may exercise its conversion right specified in subparagraph 4(a) by surrendering to
the Corporation or any transfer agent of the Corporation the certificate or certificates or an
affidavit of lost certificates, in each case, duly endorsed in form reasonably satisfactory to the
Corporation for the shares to be converted, accompanied by written notice substantially in the form
set forth in Annex A.

Conversion pursuant to exercise of the conversion right specified in subparagraph 4(a) shall
be deemed to have been effected prior to the opening of the Trading Market (or if the Common Stock
is not then listed on a national securities exchange then at 8:00 A.M. New York time) on the date
when delivery of certificates for shares is made and such date is referred to herein as the
“Optional Conversion Date”.

As promptly as practicable thereafter (and after surrender of the certificate or certificates
representing shares of Series B Preferred Stock to the Corporation or any transfer agent of the
Corporation in the case of conversions pursuant to subparagraph 4(a)), the Corporation shall issue
and deliver to or upon the written order of such Holder a certificate or certificates for the
number of full shares of Common Stock to which such Holder is entitled.

The Person in whose name the certificate or certificates for Common Stock are to be issued
shall be deemed to have become a holder of record of such Common Stock on the applicable Conversion
Date. Upon conversion of only a portion of the number of shares covered by a certificate
representing shares of Series B Preferred Stock surrendered for conversion (in the case of
conversion pursuant to subparagraph 4(a)), the Corporation shall issue and deliver to or upon the
written order of the Holder of the certificate so surrendered for conversion, at the expense of the
Corporation, a new certificate covering the number of shares of Series B Preferred Stock
representing the unconverted portion of the certificate so surrendered.

 

7

 

(d) Fractional Shares. No fractional shares of Common Stock or scrip shall be issued upon
conversion of shares of Series B Preferred Stock. If more than one share of Series B Preferred
Stock shall be surrendered for conversion at any one time by the same Holder, the
number of full shares of Common Stock issuable upon conversion thereof shall be computed on
the basis of the aggregate number of shares of Series B Preferred Stock so surrendered. Instead of
any fractional shares of Common Stock which would otherwise be issuable upon conversion of any
shares of Series B Preferred Stock, the Corporation shall round such fractional share up to the
next whole share of Common Stock.

(e) Conversion Price Adjustments. The Conversion Price shall be subject to adjustment from
time to time as follows:

(i) Stock Dividends, Subdivisions or Combinations. If the Corporation shall (A) declare a
dividend or make a distribution on its Common Stock in shares of its Common Stock, (B) subdivide
the outstanding shares of Common Stock into a greater number of shares of Common Stock, or (C)
combine the outstanding Common Stock into a smaller number of shares of Common Stock, the
Conversion Price in effect at the time of the record date for such dividend or distribution or the
effective date of such subdivision or combination shall be proportionately adjusted so that the
holder of any shares of Series B Preferred Stock surrendered for conversion after such date shall
be entitled to receive the number of shares of Common Stock which he would have owned or been
entitled to receive had such Series B Preferred Stock been converted immediately prior to such date
and assuming the Series B Preferred Stock is convertible in its entirety without regard to the
ability of the Corporation to issue Common Stock upon such conversion and without regard to the
Maximum Authorized Amount. Successive adjustments in the Conversion Price shall be made whenever
any event specified above shall occur.

(ii) Consolidation, Merger, Sale, Lease, Conveyance or Reclassification. In case of any
consolidation with or merger of the Corporation with or into another corporation, or in case of any
sale, lease or conveyance to another corporation of the assets of the Corporation as an entirety or
substantially as an entirety, or any reclassification of the capital stock of the Corporation, each
share of Series B Preferred Stock shall after the date of such consolidation, merger, sale, lease,
conveyance or reclassification be convertible into the number of shares of stock or other
securities or property (including cash) to which the Common Stock issuable (at the time of such
consolidation, merger, sale, lease, conveyance or reclassification and assuming the Series B
Preferred Stock is convertible in its entirety without regard to the ability of the Corporation to
issue Common Stock upon such conversion and without regard to the Maximum Authorized Amount) upon
conversion of such share of Series B Preferred Stock would have been entitled upon such
consolidation, merger, sale, lease, conveyance or reclassification; and in any such case, if
necessary where there is a change in or distribution with respect to the Common Stock, the
provisions set forth herein with respect to the rights and interests thereafter of the Holders
shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to any
shares of stock or other securities or property thereafter deliverable on the conversion of the
shares of Series B Preferred Stock. If the Corporation shall propose to take any action of the
type described in this clause (ii), the Corporation shall give notice to each Holder, which notice
shall specify the record date, if any, with respect to any such action and the approximate date on
which such action is to take place. Such notice shall also set forth such facts with respect
thereto as shall be reasonably necessary to indicate the effect of such action (to the extent such
effect may be known on the date of such notice) on the Conversion Price and the number, kind or
class of shares or other securities or property which shall be deliverable upon conversion of shares of
Series B Preferred Stock. In the case of any action that would require the fixing of a record
date, such notice shall be given at least ten (10) days prior to the date so fixed, and in case of
all other action, such notice shall be given at least fifteen (15) days prior to taking such
proposed action.

 

8

 

(iii) Statement Regarding Adjustments. Whenever the Conversion Price shall be adjusted, the
Corporation shall forthwith file, at the office of any transfer agent for the Series B Preferred
Stock and at the principal office of the Corporation, a statement showing in reasonable detail the
facts requiring such adjustment and the Conversion Price that shall be in effect after such
adjustment, and the Corporation shall also cause a copy of such statement to be sent to each
Holder. Each such statement shall be signed by the Chief Financial Officer of the Corporation.

(f) Notice to Holders. All notices permitted or required to be sent by the Corporation to the
Holders pursuant to this Certificate of Designations shall be sent by overnight courier or first
class certified mail, postage prepaid, or by means of electronic transmission (if on the same day
the Corporation sends a conforming copy of such notice by a recognized overnight delivery service
(charges prepaid)) to the Holders at the addresses appearing on the Corporation’s records.

(g) Treasury Stock. The sale or other disposition of any Common Stock theretofore held in the
Corporation’s treasury shall be deemed to be an issuance thereof.

(h) Costs. The Corporation shall pay all documentary, stamp, transfer or other transactional
taxes attributable to the issuance or delivery of shares of Common Stock upon conversion of any
shares of Series B Preferred Stock; provided that the Corporation shall not be required to pay any
taxes which may be payable in respect of any transfer and involved in the issuance or delivery of
any certificate for such shares in a name other than that of the Holder of the shares of Series B
Preferred Stock in respect of which such shares are being issued, and no such issue or delivery
shall be made unless and until the Person requesting such issue has paid to the Corporation the
amount of any such tax, or has established to the reasonable satisfaction of the Corporation that
such tax has been or will be paid.

(i) Shares to be Fully Paid. The Corporation will take all action necessary to assure that
all shares of Common Stock issued upon the conversion of the Series B Preferred Stock will be duly
and validly issued, fully paid and nonassessable, free and clear of all Encumbrances and shall not
be subject to preemptive rights or similar rights of stockholders, and without limiting the
generality of the foregoing, the par value per share of the Common Stock is at all times equal to
or less than the then effective Conversion Price.

(j) Reservation of Shares. Prior to the Stockholder Approval and the filing with, and
acceptance by the Secretary of State of the State of Delaware of the Charter Amendment, the
Corporation shall reserve for the purpose of issuance upon conversion of the Series A-1 Preferred
Stock and the Series B Preferred Stock such number of shares of Common Stock up to the Maximum
Authorized Amount for all Holders and all holders of the Series A-1 Preferred Stock. Thereafter,
and as long as any Series B Preferred Stock remains outstanding, the Corporation will take all
action necessary to assure that it has authorized, and reserved for the
purpose of issuance
upon conversion of the Series B Preferred Stock, a sufficient number of shares of Common Stock
to provide for conversion of the Series B Preferred Stock in full.

 

9

 

(k) Approvals. The Corporation, subject to obtaining the Stockholder Approval and filing the
Charter Amendment with the Secretary of State of the State of Delaware, will take all action
necessary to assure that shares of Common Stock may be validly and legally issued upon conversion
of the Series B Preferred Stock and in compliance with the requirements of all Laws and any
securities exchange upon which the Common Stock may be listed. The Corporation will not take any
action that could result in any adjustment hereunder if the total number of shares of Common Stock
issuable after such action upon conversion of the Series B Preferred Stock in full, together with
all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon
exercise of all options or warrants and upon conversion of all convertible securities then
outstanding, would exceed the total number of shares of Common Stock then authorized by the
Certificate of Incorporation.

5. Voting Rights.

(a) In addition to the special voting rights provided below and by applicable Law, the Holders
shall be entitled to vote upon all matters upon which holders of the Common Stock have the right to
vote, and shall be entitled to the number of votes equal to the largest number of full shares of
Common Stock into which such shares of Series B Preferred Stock could be converted pursuant to the
provisions of paragraph 4 hereof at the record date for the determination of the stockholders
entitled to vote on such matters and assuming the Series B Preferred Stock is convertible in its
entirety without regard to the ability of the Corporation to issue Common Stock upon such
conversion and without regard to the Maximum Authorized Amount, or, if no such record date is
established, at the date such vote is taken or any written consent of stockholders is solicited,
such votes to be counted together with all other shares of capital stock having general voting
powers and not separately as a class. In all cases where the Holders have the right to vote
separately as a class, such Holders shall be entitled to one vote for each such share held by them
respectively.

(b) For so long as the Non-Gores Holders hold the Minimum Amount, the Corporation shall not,
without the consent of the Holders of a majority of the Series B Preferred Stock then outstanding
held by the Non-Gores Holders (given in writing or by vote at a meeting of Holders called for such
purpose) directly or indirectly issue or sell any Common Stock (or securities convertible into
Common Stock) of the Corporation to any Gores Investor other than (a) shares of (or securities
convertible into) Common Stock issued at a price per share (or conversion ratio) at or above (1) if
the ADTV value is $100,000 or more as determined by the Board, the average of the last sales price
of the Common Stock over the immediately preceding 30 consecutive Business Days (subject to
adjustment for stock dividends, subdivisions, reclassifications, combinations or similar type
events) or (2) if the ADTV value is less than $100,000 as determined by the Board, the fair value
of the Common Stock, and (b) shares issued or sold pursuant to agreements in effect (or upon
conversion of securities outstanding) on the Issue Date.

 

10

 

6. Headings of Subdivisions. The headings of the various subdivisions hereof are for
convenience of reference only and shall not affect the interpretation of any of the provisions
hereof.

7. Severability of Provisions. If any right, preference or limitation of the Series B
Preferred Stock set forth in this resolution (as such resolution may be amended from time to time)
is invalid, unlawful or incapable of being enforced by reason of any rule of Law or public policy,
all other rights, preferences and limitations set forth in this resolution (as so amended) which
can be given effect without the invalid, unlawful or unenforceable right, preference or limitation
shall, nevertheless, remain in full force and effect, and no right, preference or limitation herein
set forth shall be deemed dependent upon any other such right, preference or limitation unless so
expressed herein.

8. Status of Reacquired Shares. Shares of Series B Preferred Stock that have been issued and
reacquired in any manner shall (upon compliance with any applicable provisions of the Laws of the
State of Delaware) have the status of authorized and unissued shares of Preferred Stock issuable in
series, undesignated as to series and, subject to the provisions hereof, may be redesignated and
reissued.

9. Amendment. No provision of this Certificate of Designations may be amended, except in a
written instrument signed by the Corporation and the Required Holders. Any of the rights of the
Holders set forth herein may be waived by the affirmative vote of the Required Holders. No waiver
of any default with respect to any provision, condition or requirement of this Certificate of
Designations shall be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair the exercise of any
such right.

10. Redemption of Series A-1 Preferred Stock.

(a) The Corporation shall not redeem, purchase or otherwise acquire, and shall not permit any
Subsidiary to redeem, purchase or otherwise acquire, any shares of the Series A-1 Preferred Stock
unless it concurrently offers to redeem the same proportion (based on Liquidation Preference) of
the Series B Preferred Stock on the same terms and conditions and at the same time (the
“Redemption Price”); provided that in no case will a conversion of the Series A-1 Preferred
Stock into Common Stock be deemed to be a redemption, purchase or other acquisition covered by this
paragraph 10.

(b) Notice of any such offer to redeem shall be sent by or on behalf of the Corporation to the
Holders not less than 10 Business Days nor more than 45 days prior to the anticipated date of
redemption (i) notifying such Holders of the Corporation’s offer to redeem such shares and of the
date of redemption, and (ii) stating the place or places at which the shares presented for
redemption shall, upon presentation and surrender of the certificates evidencing such shares, be
redeemed, and the Redemption Price therefor. To exercise its right to have its shares redeemed, a
Holder must send written notice to the Corporation not less than 2 Business Days prior to the
date of redemption set forth in the Corporation’s notice, indicating its election to
participate in the redemption.

 

11

 

(c) If a notice of redemption shall have been given as provided herein, and the Corporation
shall not default in the payment of the Redemption Price, then (i) each Holder of shares presented
for redemption shall be entitled to all preferences and relative and other rights accorded by this
resolution until and including the time of redemption and (ii) from and after the time of
redemption the shares presented for redemption shall no longer be deemed to be outstanding, and all
rights of the Holders of such shares shall cease and terminate, except the right of the Holders of
such shares, upon surrender of certificates therefor, to receive amounts to be paid hereunder.

(d) Any such offer to redeem shall be made ratably to all holders of Series B Preferred Stock.

11. Modification of Series A-1 Preferred Stock. The Corporation shall not amend or otherwise
change the Liquidation Preference, Dividend Rate or Conversion Price of the Series A-1 Preferred
Stock (in each case, as defined in the Certificate of Designations applicable to the Series A-1
Preferred Stock) unless (x) it shall have offered to the holders of the Series B Preferred Stock
the right to have a corresponding change made to this Certificate of Designations effective at the
same time that such amendment or other change is effective as to the Series A-1 Preferred Stock and
(y) if the Holders of a majority of the Series B Preferred Stock then outstanding held by Non-Gores
Holders elect to have such change effected, shall have effected such amendment or other change,
simultaneously with such amendment or other change to the Certificate of Designations applicable
to the Series A-1 Preferred Stock.

 

12

 

IN WITNESS WHEREOF, Westwood One, Inc. has caused this Certificate of Designations to be duly
executed as of this 23nd day of April, 2009.

	 	 	 	 	 
	 	WESTWOOD ONE, INC.

 	 
	 	By:  	/s/ David Hillman
 	 
	 	 	Name:  	David Hillman 	 
	 	 	Title:  	Chief Administrative Officer,  

Secretary and General Counsel 	 

 

13

 

Annex A

NOTICE TO EXERCISE CONVERSION RIGHT

The undersigned, being a holder of the 8.0% Series B Convertible Preferred Stock of Westwood
One, Inc. (the “Series B Preferred Stock”) exercises the right to convert                     
outstanding shares of Series B Preferred Stock on                     ,                     , into shares of Common Stock of
Westwood One, Inc., (the “Corporation”) [upon the occurrence of [name consolidation or
merger of the Corporation or sale of all or substantially all of the assets of the Corporation or
reorganization of the Corporation] on or prior to [insert date]] in accordance with the terms of
the shares of Series B Preferred Stock, and directs that the shares issuable and deliverable upon
the conversion be issued and delivered in the denominations indicated below to the registered
holder hereof unless a different name has been indicated below. The undersigned acknowledges and
agrees that if the number of authorized shares of Common Stock under the Certificate of
Incorporation is not sufficient to permit the Corporation to issue all of the shares of Common
Stock to which the undersigned is entitled upon conversion of all of the undersigned’s shares of
Series B Preferred Stock, the undersigned may only convert the number of shares of Series B
Preferred Stock up to the Maximum Authorized Amount (as defined in the Series B Certificate of
Designations). Capitalized terms used but not defined herein shall have the respective meanings
ascribed to them in the Purchase Agreement, dated as of April 23, 2009, among the Corporation and
the Purchasers.

Dated: [At least one Business Day prior to the date fixed for conversion]

Fill in for registration of

shares of Common Stock

if to be issued otherwise

than to the registered

holder:

	 	 	 	 	 
	 

	 	 	 	 
	Name
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Address
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Please print name and

	 	(Signature)	 	 
	address, including postal
	 	 	 	 
	code number

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