Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

RESTRUCTURING SUPPORT AGREEMENT 

THIS RESTRUCTURING SUPPORT AGREEMENT IS NOT AN OFFER OR A SOLICITATION WITH RESPECT TO ANY SECURITIES OF THE COMPANY OR A SOLICITATION OF VOTES WITH
RESPECT TO A CHAPTER 11 PLAN WITHIN THE MEANING OF SECTION 1125 OF THE BANKRUPTCY CODE. NOTHING HEREIN SHALL BE DEEMED TO BE THE SOLICITATION OF AN ACCEPTANCE OR REJECTION OF A CHAPTER 11 PLAN. ANY SUCH OFFER OR SOLICITATION WILL COMPLY WITH ALL
APPLICABLE SECURITIES LAWS AND/OR PROVISIONS OF THE BANKRUPTCY CODE. THIS RESTRUCTURING SUPPORT AGREEMENT IS ONLY BEING DISTRIBUTED (I) TO PERSONS OUTSIDE THE UNITED STATES AND (II) IN THE UNITED STATES TO PERSONS THAT ARE “ACCREDITED
INVESTORS” WITHIN THE MEANING OF REGULATION D UNDER THE SECURITIES ACT OF 1933. 
 This RESTRUCTURING SUPPORT AGREEMENT (together
with any Exhibits hereto, this “Agreement”) is made and entered into as of November 29, 2017, by and among: 
  

	 	(a)	The undersigned holders of, or nominees, investment managers, advisors or subadvisors to funds that hold, (together with any holders that accede to this Agreement in accordance with Section 12, the
“Consenting Term Loan Lenders”) the outstanding term loans (the “Term Loans”) under that certain Amended and Restated Credit Agreement, dated as of December 21, 2013 (the “Credit Agreement”),
by and among Cumulus Media Inc., Cumulus Media Holdings Inc., as borrower, JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the lenders party thereto from time to time (the
“Lenders”); 

  

	 	(b)	the undersigned holders of, or nominees, investment managers, advisors or subadvisors to funds that hold, (together with any holders that accede to this Agreement in accordance with Section 12, the
“Consenting Equityholders”) as applicable, equity interests in Cumulus Media Inc., warrants, options, calls or other rights to purchase or subscribe for common stock or voting securities of Cumulus Media Inc. or other securities, or
interests exercisable, exchangeable, or convertible into any equity interests or voting securities of Cumulus Media Inc. (collectively, the “Equity Interests”); and 

 

	 	(c)	Cumulus Media Inc., on behalf of itself and each of its subsidiaries listed on Annex A to the Term Sheet (the “Company”). 

“Parties” is defined collectively to include the Consenting Term Loan Lenders, the Consenting Equityholders, and the Company.

 As of the execution date of this Agreement, the Company has not commenced a case under title 11 of the United States Code (the
“Bankruptcy Code”). The Restructuring (as defined below) contemplated in this Agreement, which is supported by the Consenting Term Loan Lenders and the Consenting Equityholders, shall be implemented through a chapter 11 plan process
involving the Company consistent with the Restructuring (as defined below) as described in the Term Sheet (as defined below). 

 RECITALS 

WHEREAS, the Parties have engaged in good faith and arm’s-length negotiations regarding a restructuring of the Company; 

 WHEREAS, on the date hereof, (i) the Company, and (ii) the steering committee of certain direct or beneficial owners
holding in excess of 50% in the aggregate of the outstanding principal amount of the Term Loans and represented by Arnold & Porter Kaye Scholer LLP (the “Term Loan Lender Steering Committee”) agreed to a summary term
sheet, attached hereto as Exhibit A (the “Term Sheet”)1 relating to a proposed financial restructuring of the Company (the “Restructuring”) to be
implemented through a plan of reorganization (the “Chapter 11 Plan”) to be filed by the Company in connection with cases (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District
of New York (the “Bankruptcy Court”) under chapter 11 of the Bankruptcy Code; 
 WHEREAS, the Consenting
Equityholders own shares of common stock and/or other equity interests of Cumulus Media Inc.;  
 WHEREAS, the Parties have
agreed to support the Restructuring subject to and in accordance with the terms of this Agreement and desire to work together to complete the negotiation of the terms of the documents and completion of each of the actions necessary or desirable to
effect the Restructuring; and 
 NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the Parties, intending to be legally bound, hereby agrees as follows: 

The Term Sheet and each of the other exhibits hereto are fully incorporated by reference herein and are made part of this Agreement as if
fully set forth herein and all references to this Agreement shall include and incorporate such exhibits, including the Term Sheet. The general terms and conditions of the Restructuring are set forth in the Term Sheet; provided however, that
(i) the Term Sheet is supplemented by the terms and conditions of this Agreement, (ii) to the extent there is a conflict between the Term Sheet and this Agreement, the terms and provisions of this Agreement will govern, and (iii) to
the extent there is a conflict between the Term Sheet or this Agreement, on the one hand, and the Restructuring Documents (as defined below), on the other hand, the terms and provisions of the Restructuring Documents shall govern. 

In this Agreement, unless the context otherwise requires: 
  

	 	(a)	words importing the singular also include the plural, and references to one gender include all genders; 

  

 

	1 	Any terms used but not defined herein shall have the meaning ascribed to such term in the Term Sheet. 

  
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	 	(b)	the headings in this Agreement are inserted for convenience only and do not affect the construction of this Agreement and shall not be taken into consideration in its interpretation; 

 

	 	(c)	the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement; 

  

	 	(d)	the words “include,” “includes,” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “or” is not exclusive; and

  

	 	(e)	references to any governmental entity or any governmental department, commission, board, bureau, agency, regulatory authority, instrumentality, or judicial or administrative body, in any jurisdiction shall include any
successor to such entity. 

 Section 1. Conditions to Effectiveness of this Agreement 

This Agreement shall become effective and binding on each of the Parties upon satisfaction of each of the following conditions (the
“RSA Effective Date”): 
  

	 	(a)	the execution and delivery of this Agreement by holders of Term Loans that hold, in the aggregate, at least 66.67% in amount of the aggregate outstanding principal amount of the Term Loans; 

 

	 	(b)	the execution and delivery of this Agreement by the Company; and 

  

	 	(c)	payment by the Company of all Transaction Expenses as set forth in invoices delivered to the Company on or before November 28, 2017. 

provided, however, that it shall be a condition to the effectiveness of this Agreement with respect to any Consenting Equityholder that it shall
have executed and delivered this Agreement to the Company. 
 Section 2. Timeline. 

Until the earlier of the Termination Date and the Effective Date (as defined herein), the Parties agree to take any and all reasonably
necessary or appropriate actions in furtherance of the Restructuring contemplated by this Agreement and the Term Sheet, including the occurrence of the following milestones (the “Milestones”): 

 

	 	(a)	The RSA Effective Date shall have occurred by November 30, 2017; 

  

	 	(b)	The Company shall have filed the Chapter 11 Cases no later than November 30, 2017 (the “Petition Date”); 

  

	 	(c)	The Bankruptcy Court shall have entered the order approving the motion seeking authority to use cash collateral and grant adequate protection to the Lenders (the “Cash Collateral Order”) on an
interim basis within three (3) business days of the Petition Date, or such later date to which the Company and the Term Loan Lender Steering Committee agree in writing; 

  
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	 	(d)	The Company shall have filed the Chapter 11 Plan and the disclosure statement with respect to the Chapter 11 Plan (the “Disclosure Statement”) within ten (10) days of the Petition Date, or such
later date to which the Company and the Term Loan Lender Steering Committee agree in writing; 

  

	 	(e)	The Bankruptcy Court shall have entered the Cash Collateral Order on a final basis within thirty (30) days of the Petition Date, or such later date to which the Company and the Term Loan Lender Steering Committee
agree in writing; 

  

	 	(f)	The Bankruptcy Court shall have approved the Disclosure Statement within ninety (90) days of the Petition Date, or such later date to which the Company and the Term Loan Lender Steering Committee agree in writing;

  

	 	(g)	The Bankruptcy Court shall have entered the order confirming the Chapter 11 Plan within one hundred fifty (150) days of the Petition Date, or such other date to which the Company and the Term Loan Lender Steering
Committee agree in writing; and 

  

	 	(h)	The effective date of the Chapter 11 Plan (the “Effective Date”) shall have occurred within one-hundred eighty (180) days of the Petition Date, or such other date to which the Company and the Term
Loan Lender Steering Committee agree in writing. 

 Section 3. Commitment of the Consenting Term Loan Lenders.

 Subject to the terms and conditions of this Agreement and the Term Sheet, each of the Consenting Term Loan Lenders agrees (severally
and not jointly) with the Company that it shall and it shall use its commercially reasonable efforts to cause each of its respective affiliates that are Lenders and/or holders of Senior Notes during the term of this Agreement to: 

 

	 	(a)	use commercially reasonable efforts to consummate and complete the Restructuring, including taking reasonably necessary actions in furtherance of the Restructuring and this Agreement (it being understood that the
Consenting Term Loan Lenders shall not be required to undertake any cost or expense in furtherance of the foregoing that is not paid by the Company pursuant to Section 19 hereof); 

 

	 	(b)	negotiate in good faith all documentation relating to the Restructuring, including, without limitation, those documents specifically contemplated in the Term Sheet, the Chapter 11 Plan and any documents relating thereto
or contemplated thereby, including, without limitation, (i) the Disclosure Statement, (ii) the Chapter 11 Plan, (iii) any supplement to the Chapter 11 Plan, (iv) the New First Lien Credit Agreement, (v) all organizational
and constitutional documents of Reorganized Cumulus, (vi) any documents ancillary to any of the foregoing, and (vii) any amendments or modifications to any of the foregoing (each of (i)-(vii) together with any other definitive
documentation relating to the Restructuring, the “Restructuring Documents”). Each of the Restructuring Documents shall contain provisions consistent in all material respects with the Term Sheet; 

  
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	 	(c)	not take, nor encourage any other person or entity to take, any action that directly or indirectly interferes with or delays the acceptance or implementation of the transactions contemplated by the Restructuring and
this Agreement, including the Releases, including, without limitation, initiating or joining any legal proceeding, objecting, directly or indirectly, to the Chapter 11 Plan or the Restructuring Documents, or directly or indirectly negotiating or
soliciting any other plan, sale, proposal or offer of dissolution, winding up, liquidation, reorganization, merger, or restructuring of the Company or any of its subsidiaries that is inconsistent with or that would be reasonably likely to prevent,
delay, or impede the consummation of the Restructuring (an “Alternative Restructuring”); 

  

	 	(d)	timely vote all of its claims against the Company (including, without limitation and as applicable, its Term Loans) (together, the “Covered Claims”), to accept the Chapter 11 Plan in accordance with the
applicable procedures set forth in the Disclosure Statement and any other solicitation materials, and timely return a duly-executed ballot in connection therewith (it being understood that such votes will be irrevocable during the term of this
Agreement, except as otherwise provided herein); 

  

	 	(e)	not withdraw, amend, or revoke (or cause to be withdrawn, amended or revoked) its vote with respect to the Covered Claims with respect to the Chapter 11 Plan; provided, however, that such vote shall,
without any further action by the applicable Consenting Term Loan Lender, be deemed automatically revoked (and, upon such revocation, deemed void ab initio) by the applicable Consenting Term Loan Lender upon the Termination Date;

  

	 	(f)	consistent with Section 24, of this Agreement, consent to the Releases (as defined below) and not object to (or support any party’s objection to) or make an election to opt-out of any such Releases;
provided, however, that consent by a Consenting Term Loan Lender to the Releases shall, without any further action by the applicable Consenting Term Loan Lender, be deemed automatically revoked (and, upon such revocation, deemed void
ab initio) by the applicable Consenting Term Loan Lender upon the Termination Date; 

  

	 	(g)	to the extent that a legal or structural impediment to consummation of the Chapter 11 Plan arises outside of the jurisdiction of the Bankruptcy Court, and such legal or structural impediment does not otherwise provide
the Consenting Term Loan Lenders with a right to terminate this Agreement, negotiate in good faith to address any such impediment; 

  

	 	(h)	 provide prompt written notice to the Company between the date hereof and the Effective Date of the Chapter 11
Plan of (i) the occurrence, or failure to occur, of any event of which the occurrence or failure to occur would be reasonably likely to cause (A) any representation or warranty of such Consenting Term Loan Lender contained in this
Agreement to be untrue or inaccurate in any material respect, (B) any material covenant of such Consenting Term Loan Lender contained in this Agreement not to 

  
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be satisfied in any material respect, or (C) any condition precedent contained in the Chapter 11 Plan or this Agreement not to occur or become impossible to satisfy, (ii) receipt of any
written notice from any third party alleging that the consent of such party is or may be required as a condition precedent to consummation of the transactions contemplated by the Restructuring, (iii) receipt of any written notice from any
governmental body that is material to the consummation of the transactions contemplated by the Restructuring, (iv) receipt of any written notice of any proceeding commenced or threatened against any Party that would otherwise affect in any
material respect the transactions contemplated by the Restructuring, and (v) any failure of such Consenting Term Loan Lender to comply, in any material respect, with or satisfy any covenant, condition or agreement to be complied with or
satisfied by them hereunder as a condition precedent to the consummation of the transactions contemplated by the Restructuring; and 

  

	 	(i)	permit the disclosure of this Agreement, and the aggregate amount of Covered Claims held by the Consenting Term Loan Lenders; provided, however, that the Company shall not disclose (i) individual
Covered Claims amounts held by any Consenting Term Loan Lenders to any other party (including to other Consenting Term Loan Lenders), or (ii) the identity of any Consenting Term Loan Lender to any other party (including to other Consenting Term
Loan Lenders) without the prior written consent of such Consenting Term Loan Lender. 

 Notwithstanding anything contained in
this Agreement, no Consenting Term Loan Lender shall be: 
  

	 	(a)	obligated to deliver a consent or vote to accept the Chapter 11 Plan, or prohibited from withdrawing such consent or vote, in each case, upon the termination of this Agreement as to such Consenting Term Loan Lender
(provided that the Consenting Term Loan Lender is not then in material breach of its own obligations under this Agreement); 

  

	 	(b)	prohibited, limited, or restricted from contesting (in a proceeding or otherwise) whether any matter, fact or thing, is a breach of, or inconsistent with, this Agreement; 

 

	 	(c)	prohibited, limited, or restricted from asserting or raising any objection expressly permitted under this Agreement in connection with any hearing in the Bankruptcy Court, including, without limitation, any hearing on
confirmation of the Chapter 11 Plan; 

  

	 	(d)	prohibited, limited, or restricted from asserting any rights, claims, and/or defenses under the Credit Agreement, the Security Agreement (as defined in the Credit Agreement), and any related documents or agreements;

  
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	 	(e)	prohibited, limited or restricted from appearing as a party-in-interest in any matter to be adjudicated in the Chapter 11 Cases or asserting or raising any objection permitted under this Agreement in connection with any
hearing on confirmation of the Chapter 11 Plan or any other matter so long as such appearance, objection, and the positions advocated in connection therewith are not for the purpose of hindering, delaying, or preventing the consummation of the
Restructuring in a manner inconsistent with this Agreement; or 

  

	 	(f)	prohibited, limited or restricted from engaging in discussions with or among any or all of the Company, officers, representatives, or advisors, any other Lender or its affiliates, or any of their respective officers,
representatives or advisors, or any other party; provided, however, that such discussions shall not be for the purpose of hindering, delaying, or preventing the consummation of the Restructuring in a manner inconsistent with this
Agreement. 

 Section 4. Commitment of the Consenting Equityholders. 

Subject to the terms and conditions of this Agreement and the Term Sheet, each of the Consenting Equityholders agrees (severally and not
jointly) with the Company that it shall and it shall cause each of its respective affiliates during the period beginning on the RSA Effective Date and ending on the earlier of the Equityholder-Only Termination Date (as defined below) applicable to
such Consenting Equityholder and the Termination Date (as defined below): 
  

	 	(a)	not to (and direct any applicable custodian or prime broker, not to) (i) sell, assign, hypothecate, pledge, or otherwise transfer, including by the declaration of a worthless stock deduction for any tax year ending
on or prior to the Effective Date (as defined in the Term Sheet), grant a participation interest in or otherwise dispose of, directly or indirectly, its right, title or interest (including, for the avoidance of doubt, certain transfers of and
declarations of worthlessness with respect to equity securities in the Company) in respect of any of such Consenting Equityholder’s Equity Interests, as applicable, in whole or in part, or (ii) grant any proxies, deposit any of such
Consenting Equityholder’s Interests against the Company, as applicable, into a voting trust, or enter into a voting agreement with respect to any such Equity Interests, in the case of (i) or (ii), other than transfers of interests in
Consenting Equityholders and transfers among affiliates of Consenting Equityholders that are or become parties to this Agreement prior to the effectiveness of such transfer, in each case, provided that such transfers do not impair any of the
Company’s tax attributes or its ability to consummate the Restructuring. By executing this Agreement, each Consenting Equityholder agrees that any action taken in violation of this Section 4(a) shall be deemed null and void ab
initio and of no force and effect without further action by any party; 

  

	 	(b)	cooperate in terminating and/or waiving the provisions of any shareholders’ agreement with the Company to which it is a party provided that all other parties to any such agreement also so terminate and/or waive;

  

	 	(c)	consistent with Section 24, of this Agreement, consent to the Releases (as defined below) and not object to (or support any party’s objection to) or make an election to opt-out of any such Releases;
provided, however, that consent by a Consenting Equityholder to the Releases shall, without any further action by the applicable Consenting Equityholder, be deemed automatically revoked (and, upon such revocation, deemed void ab initio) by the
applicable Consenting Equityholder upon the earlier of the Equityholder-Only Termination Date and the Termination Date; 

  
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	 	(d)	not take, nor encourage any other person or entity to take, any action that directly or indirectly interferes with or delays the acceptance or implementation of the transactions contemplated by the Restructuring or this
Agreement, including the Releases, including, without limitation, initiating or joining any legal proceeding, objecting, directly or indirectly, to the Chapter 11 Plan or the Restructuring Documents, or directly or indirectly negotiating or
soliciting any other plan, sale, proposal or offer of dissolution, winding up, liquidation, reorganization, merger, or restructuring of the Company or any of its subsidiaries that is inconsistent with or that would be reasonably likely to prevent,
delay, or impede the consummation of the Restructuring; 

  

	 	(e)	support, and use reasonable best efforts to take all actions necessary or reasonably requested by the Company to facilitate the confirmation and consummation of the Chapter 11 Plan and the Restructuring;

  

	 	(f)	not assert any claims or any kind of priority against the Company in the Chapter 11 Cases (provided, that each Consenting Equityholder and its respective affiliates shall have the right to file a proof of claim in the
Chapter 11 Cases in compliance with the bar date to preserve its right to assert its claims if this Agreement terminates in accordance with its terms); 

  

	 	(g)	provide prompt written notice to the Company between the date hereof and the Effective Date of the Chapter 11 Plan of the occurrence, or failure to occur, of any event of which the occurrence or failure to occur
would be reasonably likely to cause (i) any representation or warranty of such Consenting Equityholder contained in this Agreement to be untrue or inaccurate in any material respect, or (ii) any material covenant of such Consenting
Equityholder contained in this Agreement not to be satisfied in any material respect; and 

  

	 	(h)	permit the disclosure of this Agreement, and the aggregate amount of Equity Interests held by the Consenting Equityholders. 

Section 5. Commitment of the Company. 

Subject to the terms hereof, the Company shall, jointly and severally: 

 

	 	(a)	use commercially reasonable efforts to consummate and complete the Restructuring, including taking all necessary and appropriate actions in furtherance of the Restructuring, the Chapter 11 Plan, the Releases, and this
Agreement; 

  

	 	(b)	use commercially reasonable efforts to meet all Milestones; 

  

	 	(c)	use commercially reasonable efforts to obtain any and all required regulatory approvals for the Restructuring embodied in the Restructuring Documents, including the Chapter 11 Plan; 

  
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	 	(d)	provide draft copies of the Chapter 11 Plan, Chapter 11 plan supplement, Disclosure Statement, motion to approve solicitation of the Chapter 11 Plan, the form of ballots, any proposed Confirmation Order, any motion to
approve the use of cash collateral, any Cash Collateral Order, any proposed amended version of the Chapter 11 Plan or the Disclosure Statement, all “first day” and “second day” pleadings (including forms of orders thereof), and
any other material motions, draft orders, pleadings or briefs (collectively, the “Two-Day Review Motions”) the Company intends to file with the Bankruptcy Court to the Term Loan Lender Steering Committee (via email to counsel
Arnold & Porter Kaye Scholer LLP) at least two (2) days prior to filing with the Bankruptcy Court, with all other motions, applications, pleadings and briefs (the “Other Motions”) the Company intends to file with the
Bankruptcy Court to be provided to counsel to the Term Loan Lender Steering Committee as soon as reasonably practicable prior to filing with the Bankruptcy Court, but in any event no fewer than twelve (12) hours prior to filing with the
Bankruptcy Court, and in each case consult in good faith with such counsel regarding the form and substance of any such proposed filing with the Bankruptcy Court; provided that (i) the Debtors shall not be required to provide draft
copies of any retention applications, any fee statements, or any fee applications to the Term Loan Lender Steering Committee, and (ii) if the notice required by this Section 5(d) with respect to Other Motions is not reasonably
practicable with respect to any document, the Debtors may provide notice, prior to the expiration of such deadline, that such deadline cannot be met to the Term Loan Lender Steering Committee (via email to counsel Arnold & Porter Kaye
Scholer LLP) and, if such document is provided to the Term Loan Lender Steering Committee as soon as reasonably practicable, no Termination Event shall occur as a result of such failure to comply with the terms of this Section 5(d) with
respect to Other Motions; 

  

	 	(e)	file the Two-Day Review Motions and the Other Motions (other than those set forth in Sections 5(d)(i) and 5(d)(ii)) in form and substance reasonably acceptable to the Term Loan Lender Steering Committee
(unless such document is subject to a higher standard of review and approval by the Term Loan Lender Steering Committee, in which case such higher standard of review and approval shall apply) and the Company, and seek interim and final (to the
extent applicable and/or necessary) orders, in form and substance reasonably acceptable to the Term Loan Lender Steering Committee and the Company, from the Bankruptcy Court approving the relief requested in such documents; 

 

	 	(f)	provide draft copies of any motion for interim and final orders approving procedures regarding equity trading (and related proposed order), Chapter 11 Plan, Chapter 11 plan supplement, Disclosure Statement, motion to
approve solicitation of the Chapter 11 Plan, the form of ballots, any proposed Confirmation Order, any proposed amended version of the Chapter 11 Plan or the Disclosure Statement to the Consenting Equityholders at least two (2) days prior to
filing with the Bankruptcy Court; 

  
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	 	(g)	file a customary “first day” motion for interim and final order approving procedures regarding equity trading that provides that, among other things, upon termination of this Agreement with respect to a
Consenting Equityholder such Consenting Equityholder shall have the right to move the Bankruptcy Court for an order permitting the Consenting Equityholder to take any actions set forth in Section 4(a) hereof (and all other parties shall
have the right to oppose such motion) and which shall be otherwise reasonably acceptable to the Consenting Equityholders and the Term Loan Lender Steering Committee, the approval of which the Company shall seek as soon as reasonably practicable
after the Petition Date; 

  

	 	(h)	permit the disclosure of this Agreement, the aggregate amount of Equity Interests held by the Consenting Equityholders, and the aggregate amount of Covered Claims held by the Consenting Term Loan Lenders;
provided, however, that the Company shall not disclose (i) individual Covered Claims amounts held by any Consenting Term Loan Lenders or (ii) the identity of any Consenting Term Loan Lender to any other party (including to
other Consenting Term Loan Lenders) without the prior written consent of such Consenting Term Loan Lender; 

  

	 	(i)	to the extent any legal or structural impediment arises that would prevent, hinder, or delay the consummation of the transactions contemplated herein, negotiate in good faith appropriate additional or alternative
provisions to address any such impediment; provided that the economic outcome for the Parties and other material terms of this Agreement are preserved in any such provisions; 

 

	 	(j)	subject to Section 14 of this Agreement, not directly or indirectly (A) join in or support any alternative plan or transaction other than the Chapter 11 Plan; or (B) take any action to alter in any
material respect, unreasonably delay, interfere with, or impede the approval or ratification, as applicable, of the Restructuring, the Disclosure Statement, the solicitation and solicitation procedures, the Releases, and confirmation and
consummation of the Chapter 11 Plan; 

  

	 	(k)	subject to Section 14 of this Agreement, not, nor encourage any other person or entity to, take any action that would, or would reasonably be expected to, breach or be inconsistent with this Agreement or,
directly or indirectly, interfere with the acceptance, confirmation or consummation of the Plan, approval of the Releases, or implementation of the Restructuring; 

 

	 	(l)	continue to operate the Company’s business in the ordinary course in accordance with its reasonable business judgment and, subject to applicable laws, use commercially reasonable efforts to, consistent with the
pursuit and consummation of the Restructuring and the transactions contemplated thereby, preserve intact in all material respects the current business operations of the Company and its subsidiaries; 

  
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	 	(m)	not commence an avoidance action or other legal proceeding that challenges the validity, enforceability, or priority of the Term Loans or obligations under the Credit Agreement, or any liens securing the same;

  

	 	(n)	pay all Transaction Expenses consistent with the terms of Section 19 hereof; 

  

	 	(o)	not take any action inconsistent with, or omit to take any action required by the Credit Agreement, except to the extent that any such action or inaction is expressly contemplated or permitted by this Agreement, the
Chapter 11 Plan or any of the other Restructuring Documents; and 

  

	 	(p)	provide prompt written notice to the Consenting Term Loan Lenders and the Consenting Equityholders between the date hereof and the Effective Date of the Chapter 11 Plan of (i) the occurrence, or failure to occur,
of any event of which the occurrence or failure to occur would be reasonably likely to cause (A) any representation or warranty of the Company contained in this Agreement to be untrue or inaccurate in any material respect, (B) any material
covenant of the Company contained in this Agreement not to be satisfied in any material respect, or (C) any condition precedent contained in the Chapter 11 Plan or this Agreement not to occur or become impossible to satisfy, (ii) receipt
of any written notice from any third party alleging that the consent of such party is or may be required as a condition precedent to consummation of the transactions contemplated by the Restructuring and this Agreement, including the Releases,
(iii) receipt of any written notice from any governmental body that is material to the consummation of the transactions contemplated by the Restructuring, (iv) receipt of any written notice of any proceeding commenced or threatened against
the Company that would otherwise affect in any material respect the transactions contemplated by the Restructuring and this Agreement, including the Releases, and (v) any failure of the Company to comply, in any material respect, with or
satisfy any covenant, condition, or agreement to be complied with or satisfied by them hereunder as a condition precedent to the consummation of the transactions contemplated by the Restructuring. 

The Company acknowledges and agrees and shall not dispute that after the commencement of the Chapter 11 Cases, the giving of notice of
termination by any Party pursuant to this Agreement shall not be a violation of the automatic stay of section 362 of the Bankruptcy Code (and the Company hereby waives, to the greatest extent possible, the applicability of the automatic stay to the
giving of such notice); provided that nothing herein shall prejudice any Party’s rights to argue that the giving of notice of default or termination was not proper under the terms of this Agreement. 

Notwithstanding anything to the contrary in Sections 4 or 5 of this Agreement, each of the Company’s officers and
directors, in such capacities, is not, by virtue of the Company’s or the Consenting Equityholders’ obligations under this Agreement, prohibited from taking, or from refraining to take, any actions that are consistent with, and not in
violation of, Section 14 of this Agreement, and neither the Company nor any Consenting Equityholder that is affiliated with such officer or director shall be in violation of this Agreement by virtue of such individual taking, or
refraining from taking, any such action, so long as any such action is consistent with the fiduciary obligations of the Company under applicable law (as reasonably determined by the Company after consultation with counsel). 

  
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 Section 6. Lender Termination Event. 

This Agreement and the obligations hereunder may be terminated by the Majority Consenting Term Loan Lenders (as defined below) upon the giving
of notice thereof to the Company (except as otherwise expressly provided herein with respect to a Lender Termination Event of the type specified in clauses (d), (e) or (t) of this Section 6), at any time after the occurrence,
and during the continuation of, any of the following events (each, a “Lender Termination Event”): 
  

	 	(a)	the breach in any material respect by the Company, of any of the material undertakings or covenants of the Company set forth herein and, to the extent such breach is susceptible to cure, such breach remains uncured for
a period of five (5) business days after the receipt of notice of such breach; 

  

	 	(b)	any representation or warranty in this Agreement made by the Company shall have been untrue in any material respect when made or shall have become untrue in any material respect and, if such breach is susceptible to
cure, such breach remains uncured for a period of five (5) business days following the Company’s receipt of notice thereof; 

  

	 	(c)	the failure of the Company to meet any Milestone; 

  

	 	(d)	the Restructuring Documents and any amendments, modifications, or supplements thereto filed by the Company include terms that are materially inconsistent with the Term Sheet and are not otherwise reasonably acceptable
in all respects to the Requisite Consenting Term Loan Lenders (as defined below), and such event remains uncured for a period of five (5) business days following the Company’s receipt of notice thereof; 

 

	 	(e)	a Restructuring Document materially alters the treatment of the Lenders specified in the Term Sheet (including, without limitation, any material term of the New First Lien Credit Agreement) and the Requisite Consenting
Term Loan Lenders have not consented to such material alteration, and such breach remains uncured for a period of two (2) business days following the Company’s receipt of notice thereof; 

 

	 	(f)	the issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction, of any ruling or order enjoining the consummation of a material portion of the Restructuring, and such
ruling, judgment or order has not been stayed, reversed, or vacated within twenty-five (25) calendar days after such issuance; 

  

	 	(g)	the conversion of one or more of the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code; 

  
 12 

	 	(h)	the dismissal of one or more of the Chapter 11 Cases; 

  

	 	(i)	the appointment of a trustee, receiver, or examiner with expanded powers in one or more of the Chapter 11 Cases; 

  

	 	(j)	the commencement of an involuntary bankruptcy case against the Company under the Bankruptcy Code, if such involuntary case is not dismissed within sixty (60) calendar days after the filing thereof, or if a court
order grants the relief sought in such involuntary case; 

  

	 	(k)	the preparation and/or filing of a motion to the Bankruptcy Court seeking to reject or otherwise not perform under this Agreement; 

  

	 	(l)	the Bankruptcy Court enters an order modifying or terminating the Company’s exclusive right to file and/or solicit acceptances of a plan of reorganization, provided, that if such order is subject to appeal, a
Lender Termination Event shall result if such breach remains uncured or unappealed for a period of five (5) business days following the Company’s receipt of notice thereof; 

 

	 	(m)	denial by the Bankruptcy Court of confirmation of the Chapter 11 Plan; 

  

	 	(n)	the order confirming the Chapter 11 Plan is reversed, vacated, or otherwise modified in a manner materially inconsistent with this Agreement; 

 

	 	(o)	any court of competent jurisdiction has entered a judgment or order declaring the Restructuring, this Agreement or any material portion hereof to be unenforceable or illegal and such judgment or order is not stayed,
dismissed, vacated or modified within twenty-five (25) calendar days following the entry thereof; 

  

	 	(p)	the Company (A) publicly announces its intention not to support the Restructuring, (B) files a motion with the Bankruptcy Court seeking the approval of an Alternative Restructuring, or (C) agrees to
pursue or publicly announces its intent to pursue an Alternative Restructuring; 

  

	 	(q)	if either (i) the Company files a motion, application or adversary proceeding (or supports or fails to timely object to such a filing) (A) challenging the validity, enforceability, perfection or priority of,
or seeking invalidation, avoidance, disallowance, recharacterization or subordination of, the obligations or Covered Claims arising under or relating to the Credit Agreement, or (2) challenging the seniority of the obligations or Covered Claims
arising under or relating to the Credit Agreement, or (ii) the Bankruptcy Court (or any court with jurisdiction over the Chapter 11 Cases) enters an order providing relief against the interests of the Consenting Term Loan Lenders with respect
to any of the foregoing causes of action or proceedings, including, but not limited to, invalidating, avoiding, disallowing, recharacterizing, subordinating, or limiting the enforceability of any of the obligations or Covered Claims arising under or
related to the Credit Agreement; 

  
 13 

	 	(r)	the Company makes an assignment for the benefit of creditors; 

  

	 	(s)	on or after the RSA Effective Date, the Company engages in any merger, consolidation, disposition, acquisition, investment, dividend, incurrence of indebtedness or other similar transaction outside the ordinary course
of business, other than: (i) the commencement of the Chapter 11 Cases or other bankruptcy or similar proceeding; or (ii) as permitted or contemplated by the Restructuring; provided, however, the Company may settle the Merlin
Claims subject to the consent of the Term Loan Lender Steering Committee, which consent shall not be unreasonably withheld; 

  

	 	(t)	on the date that is two-hundred and seventy (270) days after the Petition Date (the “Outside Date”); and 

  

	 	(u)	the terms of any entered Cash Collateral Order are not reasonably acceptable to the Term Loan Lender Steering Committee; 

provided, that notwithstanding the foregoing, unless waived by the Requisite Consenting Term Loan Lenders, if a Lender Termination
Event of the type specified in clauses (d), (e) or (t) of this Section 6 occurs, this Agreement and the obligations hereunder shall be terminated automatically and without the need for any notice thereof. 

This Agreement shall automatically terminate solely as to any Consenting Term Loan Lender on the date, which shall be deemed a Termination
Date solely with respect to such Consenting Term Loan Lender (and not, for the avoidance of doubt, as to any other Consenting Term Loan Lender), on which such Consenting Term Loan Lender has transferred all (but not less than all) of its claims in
accordance with Section 11 of this Agreement. 
 Section 7. Equityholder Termination Events. 

This Agreement and the obligations hereunder, solely with respect to Consenting Equityholders, may be terminated as to any Consenting
Equityholder upon the giving of notice thereof by such Consenting Equityholder to the Company at any time after the occurrence, and during the continuation of, any of the following events (each, an “Equityholder Termination
Event”); provided, however, that if such Equityholder Termination Event is susceptible to cure, this Agreement and the obligations hereunder may only be terminated five (5) business days after written notice of such
Equityholder Termination Event is delivered to the Company if such Equityholder Termination Event has not been cured by such date: 
  

	 	(a)	the breach in any material respect by the Company, of any of the material undertakings or covenants of the Company set forth herein and, to the extent such breach is susceptible to cure, such breach remains uncured for
a period of five (5) business days after the receipt of notice of such breach; 

  
 14 

	 	(b)	the breach in any material respect by one or more of the Consenting Term Loan Lenders, of any of the undertakings, representations, warranties, or covenants of the Consenting Term Loan Lenders set forth herein that
(x) remains uncured for a period of three (3) business days after the receipt by the Company of written notice by a Consenting Equityholder of such breach; and (y) could reasonably be expected to impair the ability to consummate the
Restructuring in accordance with the terms of the Term Sheet; 

  

	 	(c)	any representation or warranty in this Agreement made by the Company shall have been untrue in any material respect when made or shall have become untrue in any material respect and, if such breach is susceptible to
cure, such breach remains uncured for a period of five (5) business days following the Company’s receipt of notice thereof; 

  

	 	(d)	the Restructuring Documents and any amendments, modifications, or supplements thereto filed by the Company or approved by the Bankruptcy Court do not include the Releases or are in any way inconsistent with
Section 24 of this Agreement; 

  

	 	(e)	the issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction, of any ruling or order enjoining the consummation of a material portion of the Restructuring or this
Agreement or any material portion hereof, including the Releases, and such ruling, judgment or order has not been stayed, reversed, or vacated within twenty-five (25) calendar days after such issuance; 

 

	 	(f)	the Bankruptcy Court enters an order or issues a ruling or decision, whether in connection with the approval of any disclosure statement or chapter 11 plan or otherwise, that it will not approve the Releases;

  

	 	(g)	the conversion of one or more of the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code; 

  

	 	(h)	the dismissal of one or more of the Chapter 11 Cases; 

  

	 	(i)	the appointment of a trustee, receiver, or examiner with expanded powers in one or more of the Chapter 11 Cases; 

  

	 	(j)	the commencement of an involuntary bankruptcy case against the Company under the Bankruptcy Code, if such involuntary case is not dismissed within sixty (60) calendar days after the filing thereof, or if a court
order grants the relief sought in such involuntary case; 

  

	 	(k)	the preparation and/or filing of a motion to the Bankruptcy Court seeking to reject or otherwise not perform under this Agreement; 

  

	 	(l)	the Bankruptcy Court enters an order modifying or terminating the Company’s exclusive right to file and/or solicit acceptances of a chapter 11 plan, provided, that if such order is subject to appeal, an
Equityholder Termination Event shall result if such breach remains uncured or unappealed for a period of five (5) business days following the Company’s receipt of notice thereof; 

  
 15 

	 	(m)	denial by the Bankruptcy Court of confirmation of the Chapter 11 Plan; 

  

	 	(n)	the order confirming the Chapter 11 Plan is reversed, vacated, or otherwise modified in a manner materially inconsistent with this Agreement, including if such order is in anyway inconsistent with Section 24
of this Agreement; 

  

	 	(o)	any court of competent jurisdiction has entered a judgment or order declaring the Restructuring, this Agreement or any material portion hereof, including the Releases, to be unenforceable or illegal and such judgment or
order is not stayed, dismissed, vacated or modified within twenty-five (25) calendar days following the entry thereof; 

  

	 	(p)	the Company (A) publicly announces its intention not to support the Restructuring or the Releases, (B) files a motion with the Bankruptcy Court seeking the approval of an Alternative Restructuring, or
(C) agrees to pursue or publicly announces its intent to pursue an Alternative Restructuring; 

  

	 	(q)	the Company files a motion, application or adversary proceeding (or supports or fails to timely object to such a filing) seeking to avoid, recover, recharacterize or otherwise challenge any transfer made to any
Consenting Equityholder, or (the Bankruptcy Court (or any court with jurisdiction over the Chapter 11 Cases) enters an order providing relief against the interests of any Consenting Equityholder with respect to any of the foregoing causes of action
or proceedings; and 

  

	 	(r)	the Company makes an assignment for the benefit of creditors. 

 Section 8. Company
Termination Events. 
 This Agreement and the obligations hereunder may be terminated by the Company upon the giving of notice
thereof to the Consenting Term Loan Lenders and the Consenting Equityholders upon the occurrence of any of the following events (each, a “Company Termination Event”): 

 

	 	(a)	the breach in any material respect by one or more of the Consenting Term Loan Lenders, of any of the undertakings, representations, warranties, or covenants of the Consenting Term Loan Lenders set forth herein in any
material respect which (x) remains uncured for a period of five (5) business days after the receipt of written notice of such breach by all Consenting Term Loan Lenders; and (y) could reasonably be expected to impair the ability to
consummate the Restructuring in accordance with the terms of the Term Sheet; 

  

	 	(b)	the breach in any material respect by one or more of the Consenting Equityholders, of any of the undertakings, representations, warranties, or covenants of the Consenting Equityholders set forth herein in any material
respect which remains uncured for a period of three (3) business days after the receipt of written notice of such breach; provided that any such termination by the Company pursuant to this Section 8(b) shall be solely with
respect to the breaching Consenting Equityholder and shall not otherwise affect the rights and obligations of the non-breaching Consenting Equityholders, the Consenting Term Loan Lenders and the Company under this Agreement; 

  
 16 

	 	(c)	receipt by the Consenting Term Loan Lenders and the Consenting Equityholders of the Company’s Fiduciary Decision (as defined herein) made in accordance with Section 14 herein; and 

 

	 	(d)	the issuance by any governmental authority, including any regulatory authority or court of competent jurisdiction, of any ruling or order enjoining the consummation of a material portion of the Restructuring, and such
ruling, judgment or order has not been not stayed, reversed or vacated within twenty-five (25) calendar days after such issuance. 

Section 9. Mutual Termination. 

This Agreement, and the obligations of all Parties hereunder may be terminated by a mutual written agreement among the Majority Consenting Term
Loan Lenders, on the one hand, and the Company, on the other hand. 
 Section 10. Effect of Termination. 

The date on which this Agreement is terminated in accordance with Sections 6, 8 (other than any termination pursuant to
Section 8(b)), or 9 of this Agreement shall be referred to as the “Termination Date”. Upon the earlier to occur of the Termination Date or the Effective Date, termination of this Agreement shall be effective
immediately and all obligations hereunder (other than obligations that expressly survive pursuant to Section 16) shall terminate, each Party hereto shall be released from its commitments, undertakings, and agreements, and this Agreement
shall be of no further force and effect and shall have all the rights and remedies that it would have had and shall be entitled to take all actions, whether with respect to the Restructuring or otherwise, that it would have been entitled to take had
it not entered into this Agreement, including all rights and remedies available to it under applicable law, the Credit Agreement and any ancillary documents or agreements thereto; provided, however, that (i) any claim for breach
of this Agreement that occurs prior to the Termination Date and (ii) the rights and obligations of the Parties under Section 19, if applicable, with respect to the payment of fees and expenses incurred up to such date of termination
shall survive such termination and all rights and remedies with respect to such claims shall not be prejudiced in any way. Upon the termination of this Agreement, each vote or any consents given by any Consenting Term Loan Lenders prior to such
termination shall be deemed, for all purposes, to be null and void ab initio and shall not be considered or otherwise used in any manner by the Parties in connection with the Restructuring and this Agreement, in each case, without further
confirmation or other action by such Consenting Term Loan Lenders. If this Agreement has been terminated as to any Consenting Term Loan Lender at a time when permission of the Bankruptcy Court shall be required for a Consenting Term Loan Lender to
change or withdraw (or cause to change or withdraw) its vote to accept the Chapter 11 Plan, the Company shall not oppose any attempt by such Consenting Term Loan Lender to change or withdraw (or cause to change or withdraw) such vote at such time,
subject to all remedies available to the Company at law, equity, or otherwise, including 

  
 17 

 
those remedies set forth in Section 20 hereof; provided that nothing herein shall prevent the Company from contesting whether or not the applicable Lender Termination Events
have actually occurred. Such Consenting Term Loan Lender shall have no liability to the Company or any other Term Loan Lender in respect of any termination of this Agreement in accordance with the terms of this Section 10 and Sections
6 and 27 hereof (unless such termination is determined by a court of competent jurisdiction to have been invalid); provided, that, under no circumstance shall a Consenting Term Loan Lender have any liability to any
Consenting Equityholder as a result of any action, or any failure to take any action, by any Consenting Term Loan Lender, in connection with this Agreement; provided further, that, under no circumstance shall a Consenting Equityholder
have any liability to any Consenting Term Loan Lender as a result of any action, or any failure to take any action, by any Consenting Equityholder, in connection with this Agreement. 

Upon the occurrence of the termination of this Agreement pursuant to Section 7 or 8(b) with respect to any Consenting
Equityholder (an “Equityholder-Only Termination Event” and the date of such termination the “Equityholder-Only Termination Date”), this Agreement shall terminate solely with respect to such terminating Consenting
Equityholder and all of its obligations hereunder (and not, for the avoidance of doubt, as to any other Consenting Equityholder or its obligations hereunder), and such Consenting Equityholder shall be released from its commitments, undertakings, and
agreements hereunder, and this Agreement shall be of no further force and effect solely with respect to such Consenting Equityholder and such Consenting Equityholder shall have all the rights and remedies that it would have had and shall be entitled
to take all actions, whether with respect to the Restructuring or otherwise, that it would have been entitled to take had they not entered into this Agreement, including all rights and remedies available to it under applicable law; provided,
however, that any claim for breach of this Agreement that occurs prior to such Equityholder-Only Termination Date shall survive such termination and all rights and remedies with respect to such claims shall not be prejudiced in any way. 

Section 11. Transfers of Claims. 

During the period beginning on the RSA Effective Date and ending on the Termination Date, each Consenting Term Loan Lender agrees not to (and
agrees to use commercially reasonable efforts to cause any affiliates that are Lenders or holders of Senior Notes not to) (a) sell, transfer, assign, hypothecate, pledge, grant a participation interest in or otherwise dispose of, directly or
indirectly, its right, title or interest in respect of any of such Consenting Term Loan Lender’s Covered Claims against the Company as applicable, in whole or in part, or (b) grant any proxies, deposit any of such Consenting Term Loan
Lender’s Covered Claims against the Company, as applicable, into a voting trust, or enter into a voting agreement with respect to any such Covered Claims (the actions described in clauses (a) and (b) are collectively referred to
herein as a “Transfer”), unless: (x) such Transfer is to another Consenting Term Loan Lender or any other person or entity that first agrees in writing to be bound by the terms of this Agreement by executing Exhibit B to
this Agreement, and (y) notice of such Transfer and such executed Exhibit B, if applicable, is delivered by email to counsel to the Consenting Term Loan Lenders (as provided in Section 27 herein) and the Company by no later
than two (2) business days before such Transfer is consummated and settled (each, a “Permitted Transferee”). With 

  
 18 

 
respect to Covered Claims against the Company held by a Permitted Transferee upon consummation of a Transfer, such Permitted Transferee (x) shall make and shall be deemed to make all of the
representations and warranties of a Consenting Term Loan Lender under this Agreement and (y) shall agree and shall be deemed to agree to be bound by all of terms applicable to a Consenting Term Loan Lender under this Agreement. Upon compliance
with the foregoing, the transferor shall be deemed to relinquish its rights (and be released from its obligations) under this Agreement to the extent such rights and obligations are assumed by a Permitted Transferee. 

By executing this Agreement, each of the Consenting Term Loan Lenders agree that any Transfer made in violation of this Section 11
shall be deemed null and void ab initio and of no force or effect without further action by any Party or the intended transferee, regardless of any prior notice provided to the Company or counsel to the Consenting Term Loan Lenders, and shall
not create any obligation or liability of the Company to the intended transferee. Each Consenting Term Loan Lender agrees not to create any subsidiary, affiliate, or other vehicle or device for the purpose of acquiring claims of the Company without
first causing such subsidiary, affiliate, vehicle, or device to be bound by and subject to this Agreement. The transfer restrictions set forth herein shall be in addition to any transfer restrictions set forth in the Credit Agreement. 

This Agreement shall in no way be construed to preclude the Consenting Term Loan Lenders from acquiring additional Covered Claims; provided
that (i) any Consenting Term Loan Lender that acquires additional Covered Claims during the term of this Agreement shall promptly notify the Company and counsel to the Term Loan Lender Steering Committee, of such acquisition, including the
amount of such acquisition, and (ii) such acquired Covered Claims shall automatically and immediately upon acquisition by a Consenting Term Loan Lender be deemed subject to the terms of this Agreement (regardless of when or whether notice of
such acquisition is given). 
 As used herein, the term “Qualified Marketmaker” means an entity that (a) holds itself
out to the public or the applicable private markets as standing ready in the ordinary course of business to purchase from customers and sell to customers Covered Claims (or enter with customers into long and short positions in Covered Claims), in
its capacity as a dealer or market maker in Covered Claims and (b) is, in fact, regularly in the business of making a market in claims against issuers or borrowers (including debt securities or other debt). Notwithstanding anything to the
contrary herein, a Qualified Marketmaker that acquires any of the Covered Claims with the purpose and intent of acting as a Qualified Marketmaker for such Covered Claims shall not be required to agree in writing to be bound by the terms of this
Agreement by executing Exhibit B to this Agreement if such Qualified Marketmaker transfers such Covered Claims within five (5) Business Days of its acquisition to a Permitted Transferee, provided that (i) such exception will
only be available in transactions where the Qualified Marketmaker is acting in such capacity, and (ii) the notice provisions set forth in the first paragraph of this Section 11 shall continue to apply to any transfer to or by a
Qualified Marketmaker. 

  
 19 

 Section 12. Accession 

After the date hereof, additional holders of the Term Loans or Equity Interests may become Consenting Term Loan Lenders or Consenting
Equityholders, as applicable, by agreeing in writing to be bound by the terms of this Agreement by executing a counterpart signature page to this Agreement and delivering such signature page in accordance with Section 27 herein. 

Section 13. Acknowledgment. 

This Agreement is not and shall not be deemed to be a solicitation for consents to the Chapter 11 Plan or an offer of New First Lien Credit
Agreement debt or equity in Reorganized Cumulus. The acceptance of the Chapter 11 Plan by each of the Consenting Term Loan Lenders will be subject to proper solicitation pursuant to sections 1125, 1126, and 1127 of the Bankruptcy Code. The
undersigned Consenting Term Loan Lenders understand that the equity in Reorganized Cumulus will be distributed only (a) in the United States to holders of Term Loans who are “accredited investors” (as defined in Rule 501(a) of
Regulation D under the Securities Act) in reliance on section 4(a)(2) of the Securities Act, (b) outside the United States to holders of the Term Loans in reliance on Regulation S under the Securities Act, or (c) pursuant to
section 1145 of the Bankruptcy Code. The undersigned confirms that it is eligible to acquire New First Lien Credit Agreement debt and/or the equity in Reorganized Cumulus pursuant to the conditions set forth in the foregoing sentence. 

The Company acknowledges and agrees that the Company’s entry into, and performance under, this Agreement does not constitute or trigger a
termination event under any of the employment agreements between the Company, on the one hand, and its Chief Executive Officer, Chief Financial Officer, General Counsel, or any executive vice president of either Cumulus Media Inc., or Cumulus Media
Holdings Inc., on the other hand. 
 Section 14. Fiduciary Duties. 

Nothing in the Term Sheet or this Agreement shall require the Company to take any action, or to refrain from taking any action, if doing so
would be inconsistent with its fiduciary obligations under applicable law (as reasonably determined by it after consultation with counsel) (any such determination, a “Fiduciary Decision”); provided, that the Company
shall provide notice of any such Fiduciary Decision to counsel to the Term Loan Lender Steering Committee via email within one (1) day of the date of such determination. 

Section 15. Representations and Warranties. 
  

	 	(a)	(i) Each of the Consenting Term Loan Lenders, on the one hand, and the Company, on the other hand, and (ii) each of the Consenting Equityholders, on the one hand, and the Company on the other hand, hereby
represents and warrants to such counterparty, on a several and not joint basis for itself and not any other person or entity that the following statements are true, correct, and complete as of the date hereof: 

 

	 	(1)	it has the requisite corporate or other organizational power and authority to enter into this Agreement and to carry out the transactions contemplated by, and perform its respective obligations under, this Agreement;

  
 20 

	 	(2)	the execution and delivery of this Agreement and the performance of its obligations hereunder have been duly authorized by all necessary corporate or other organizational action on its part; 

 

	 	(3)	the execution, delivery, and performance by it of this Agreement does not and shall not (i) violate any provision of law, rule, or regulation applicable to it, or its certificate of incorporation or bylaws or other
organizational documents or those of any of its affiliates, or (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it is a party;

  

	 	(4)	the execution, delivery, and performance by it of this Agreement does not and shall not require any registration or filing with, the consent or approval of, notice to, or any other action with any federal, state, or
other governmental authority or regulatory body; 

  

	 	(5)	subject to the provisions of sections 1125 and 1126 of the Bankruptcy Code, this Agreement is the legally valid and binding obligation of it, enforceable against it in accordance with its terms, except as enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws relating to or limiting creditors’ rights generally, or by equitable principles relating to enforceability; and 

 

	 	(6)	it is (i) the sole beneficial owner and/or the nominee, investment manager, advisor, or subadvisor for the beneficial holder of its Covered Claims or Equity Interests, as applicable, set forth under its signature
and in the amounts set forth therein and (ii) exclusively entitled (for its own accounts or for the accounts of such other beneficial owners) to all of the rights and economic benefits of such Covered Claims or Equity Interests, as applicable.

  

	 	(b)	The Company hereby represents and warrants for itself and not any other person or entity that the following statements are true, correct, and complete as of the date hereof: 

 

	 	(1)	it has the requisite corporate power and authority to enter into this Agreement and (upon entry of an order of the Bankruptcy Court) to carry out the transactions contemplated by, and perform its respective obligations
under, this Agreement; 

  

	 	(2)	the execution and delivery of this Agreement and the performance of its obligations hereunder have been duly authorized by all necessary corporate or other organizational action on its part; 

  
 21 

	 	(3)	the execution, delivery, and, subject to Bankruptcy Court approval, performance of this Agreement and the consummation of the transactions contemplated hereby did not and will not (a) result in any violation of its
certificate of incorporation or bylaws (or equivalent governing documents) or those of the Company’s subsidiaries, (b) (other than any proceedings in a Bankruptcy Court) conflict with, result in the breach or violation of, or constitute a
breach or violation of any material contractual obligations of it or any of the Company’s subsidiaries, or (c) result in the violation of any law (statutory or common), statute, Order, ruling, rule or regulation, code, ordinance, writ,
assessment, award, injunction, judgment, or decree enacted, adopted, issued, or promulgated by any government or governmental court, agency, or body, having jurisdiction over it or any of the Company’s subsidiaries; and 

 

	 	(4)	subject to the provisions of sections 1125 and 1126 of the Bankruptcy Code, this Agreement is the legally valid and binding obligation of it, enforceable against it in accordance with its terms, except as enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or limiting creditors’ rights generally, or by equitable principles relating to enforceability. 

Section 16. Survival of Agreement. 

Notwithstanding (i) any sale of the Term Loans in accordance with Section 11 or (ii) the termination of this Agreement in
accordance with its terms, the agreements, and obligations of the Parties in Section 19 (solely to the extent of fees and expenses accrued before termination) and Sections 10, 14, 16, 17, 21, 22,
23, 25, 26, 27, 28, 31, 32 and 33 shall survive such sale and/or termination and shall continue in full force and effect for the benefit of the Parties in accordance with the terms hereof. 

Section 17. Waiver. 

This Agreement is part of a proposed settlement of a dispute among the Parties. If the transactions contemplated herein are not consummated
following the occurrence of the Termination Date, nothing herein shall be construed as a waiver by any Party of any or all of such Party’s rights and the Parties expressly reserve any and all of their respective rights. Pursuant to Federal Rule
of Evidence 408 and any other applicable rules of evidence, this Agreement and all negotiations relating hereto shall not be admissible into evidence in any proceeding other than a proceeding to enforce its terms. 

Section 18. Relationship Among Parties. 

Notwithstanding anything herein to the contrary, the respective duties and obligations of the Consenting Term Loan Lenders and the Consenting
Equityholders under this Agreement shall be several, not joint. No Consenting Term Loan Lender or Consenting Equityholder shall have any responsibility for any trading by any other entity by virtue of this Agreement. No prior history, pattern, or
practice of sharing confidences among or between Consenting Term Loan Lenders or Consenting Equityholders shall in any way affect or negate this understanding and 

  
 22 

 
agreement. The Consenting Term Loan Lenders and the Consenting Equityholders have no agreement, arrangement, or understanding with respect to acting together for the purpose of acquiring,
holding, voting, or disposing of any equity securities of the Company and do not constitute a “group” within the meaning of Rule 13d-5 under the Exchange Act. 

Section 19. Payment of Fees. 

To the extent not paid pursuant to the Cash Collateral Order or the Credit Agreement, the Company shall pay, within ten (10) days
following receipt of an invoice, any Transaction Expenses (defined below), without the need for any party to file a fee application or otherwise seek Bankruptcy Court approval of such Transaction Expenses (whether incurred prior to, on or after the
Petition Date), but subject to any procedural requirements set forth in the Cash Collateral Order. All such Transaction Expenses incurred and invoiced up to the Petition Date shall be paid in full prior to the Petition Date (without deducting any
retainers). As used herein, “Transaction Expenses” means all reasonable and documented fees and out-of-pocket expenses incurred by (i) the Administrative Agent (which fees and expenses in respect of professionals shall be
limited to the fees and expenses of one counsel), and (ii) the Term Loan Lender Steering Committee (which fees and expenses in respect of professionals shall be limited to the fees and expenses of Arnold & Porter Kaye Scholer LLP, FTI
Consulting Inc., Fortgang Consulting, LLC and Aloise & Associates, LLC; provided, that, except with respect to the fees and expenses of Arnold & Porter Kaye Scholer LLP and FTI Consulting Inc., in no event
shall the fees and expenses of Term Loan Lender Steering Committee (i) incurred prior to the RSA Effective Date exceed $75,000 in the aggregate and (ii) incurred between the RSA Effective Date and the Effective Date exceed $150,000 in the
aggregate, or such higher amount that shall be subject to the prior written consent of the Company, such consent not to be unreasonably withheld, in connection with this Agreement, the Term Sheet, the Restructuring Documents, and the transactions
contemplated hereby and thereby. 
 Section 20. Specific Performance. 

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

Section 21. Governing Law. 

This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. By its execution and delivery of this
Agreement, each of the Parties irrevocably and unconditionally agrees for itself that any legal action, suit or proceeding against it with respect to any matter arising under or arising out of or in connection with this Agreement or for recognition
or enforcement of any judgment rendered in any such action, suit, or proceeding, may be brought in the courts of the state of New York, and by execution and delivery of this Agreement, each of the Parties irrevocably accepts and submits itself to
the exclusive jurisdiction of such court, generally and unconditionally, with respect to any such action, suit, or proceeding. Notwithstanding the foregoing consent to New York jurisdiction, if the Chapter 11 Cases are commenced, each Party agrees
that the Bankruptcy Court shall have exclusive jurisdiction over all matters arising out of or in connection with this Agreement. 

  
 23 

 Section 22. Waiver of Right to Trial by Jury. 

Each of the Parties waives any right to have a jury participate in resolving any dispute, whether sounding in contract, tort, or otherwise,
between any of them arising out of, connected with, relating to or incidental to the relationship established between any of them in connection with this Agreement. Instead, any disputes resolved in court shall be resolved in a bench trial without a
jury. 
 Section 23. Personal Jurisdiction. 

By execution and delivery of this Agreement, and for purposes of any action, suit or proceeding or other contested matter arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment rendered or order entered in any such action, suit, proceeding, or other contested matter, each of the Parties irrevocably and unconditionally submits to the personal
jurisdiction of (a) the courts of the state of New York, or (b) the Bankruptcy Court, if such Bankruptcy Court has jurisdiction. 

Section 24. Releases. 

Notwithstanding anything to the contrary in the Term Sheet, the Chapter 11 Plan and the order confirming the Chapter 11 Plan will provide full
releases (including Debtor and third-party releases) (the “Releases”) and exculpation provisions for the benefit of the Company, Reorganized Cumulus, the Agent, the Consenting Term Loan
Lenders, the Consenting Equityholders, the manager, management company or investment advisor of any of the foregoing, and, each of such entities’ respective current and former affiliates, and such entities’ and their current and former
affiliates’ current and former officers, managers, directors, equity holders (regardless of whether such interests are held directly or indirectly), predecessors, successors, assigns, subsidiaries, principals, members, employees, agents,
independent contractors, managed accounts or funds, management companies, fund advisors, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants, representatives, and other professionals, each in
their capacity as such. 
 Section 25. Successors and Assigns. 

Except as otherwise provided in this Agreement, this Agreement is intended to bind and inure to the benefit of each of the Parties and each of
their respective successors, assigns, heirs, executors, administrators and representatives. 
 Section 26. No Third-Party
Beneficiaries. 
 Unless expressly stated herein, this Agreement shall be solely for the benefit of the Parties and no other person
or entity shall be a third-party beneficiary of this Agreement. 

  
 24 

 Section 27. Notices. 

All notices (including, without limitation, any notice of termination) and other communications from any Party hereunder shall be in writing
and shall be deemed to have been duly given if personally delivered by courier service, messenger, or facsimile to the other Parties at the applicable addresses below, or such other addresses as may be furnished hereafter by notice in writing: 

 

	 	(a)	If to the Term Loan Lender Steering Committee: 

 Arnold & Porter Kaye
Scholer LLP 
 70 West Madison Street 

Chicago, Illinois 60602 

Attn: Michael D. Messersmith 

         Michael B. Solow 

         Seth J. Kleinman 

Email: michael.messersmith@apks.com 

            michael.solow@apks.com 

            seth.kleinman@apks.com 

 

	 	(b)	If to the Consenting Term Loan Lenders, to the address set forth on such Consenting Term Loan Lender’s signature page hereto. 

  

	 	(c)	If to the Consenting Equityholders, to the address set forth on such Consenting Equityholder’s signature page hereto. 

  

	 	(d)	If to the Company: 

 Cumulus Media Inc. 3280 Peachtree Road NW, Suite 2300 

Atlanta, Georgia 30305 

Attention: Richard S. Denning 

Email: richard.denning@cumulus.com 

With a copy to: 

Kirkland & Ellis LLP 

601 Lexington Avenue 

New York, New York, 10022 

Attention: Nicole L. Greenblatt, P.C. 

                 Alice Nofzinger 

E-mail: nicole.greenblatt@kirkland.com 

             alice.nofzinger@kirkland.com 

-and- 

Kirkland & Ellis LLP 

  
 25 

 300 North LaSalle 

Chicago, Illinois 60654 

Attention: Robert A. Britton, Esq. 

                 Benjamin M. Rhode, Esq.

 E-mail: robert.britton@kirkland.com 

             benjamin.rhode@kirkland.com 

-and- 

Paul, Weiss, Rifkind, Wharton & Garrison LLP 

1285 Avenue of the Americas 

New York, New York 10019 

Attention: Paul M. Basta, 

E-mail: pbasta@paulweiss.com 

Section 28. Entire Agreement. 

This Agreement, including the exhibits, schedules, and annexes hereto constitutes the entire agreement of the Parties with respect to the
subject matter of this Agreement, and supersedes all other prior negotiations, agreements, and understandings, whether written or oral, among the Parties with respect to the subject matter of this Agreement. 

Section 29. Amendments. 

Except as otherwise provided herein, this Agreement may not be modified, amended or supplemented without prior written consent of the Requisite
Consenting Term Loan Lenders and the Company; provided that Sections 4, 7 and 24 of this Agreement may not be modified, amended or supplemented without the prior written consent of the Consenting
Equityholders that hold, in the aggregate, a majority in aggregate amount of Equity Interests held by all of the Consenting Equityholders (the “Majority Consenting Equityholders”). No waiver of any term or provision of this
Agreement or of the Chapter 11 Plan or of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be valid unless the same shall be in writing and signed by the Requisite Consenting Term Loan
Lenders (except in the case of a Company Termination Event, the waiver of which shall be in a writing signed by the Company), nor shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or
covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent default, misrepresentation, or breach of warranty or covenant. The failure of any Party to exercise any right, power or remedy provided under this
Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other Party with its obligations hereunder shall not constitute a waiver by such Party of its right to exercise any such or other right,
power or remedy or to demand such compliance. As used in this Agreement, (a) “Requisite Consenting Term Loan Lenders” shall mean, (i) in the case of a Material Amendment/Waiver (as defined below), Consenting Term Loan
Lenders holding, in the aggregate, more than seventy-five percent (75%) of the outstanding principal amount of the Term Loans that are held by all of the Consenting Term Loan Lenders, and (ii) in the case of any other amendment or waiver
of any term or provision of this Agreement 

  
 26 

 
or the Chapter 11 Plan, Consenting Term Loan Lenders holding, in the aggregate, more than fifty percent (50%) of the outstanding principal amount of the Term Loans that are held by all
Consenting Term Loan Lenders (the “Majority Consenting Term Loan Lenders”); (b) “Material Amendment/Waiver” shall mean any amendment or waiver of (i) any term or provision of this Agreement, the Term Sheet
or the Chapter 11 Plan, the effect of which is to modify the form of, or decrease the amount or percentage of, the recovery (or any component thereof) to be paid, issued, or distributed to the Lenders (as defined in the Credit Agreement) (or any one
of them) pursuant to the terms of the Chapter 11 Plan set forth in the Term Sheet; provided, however, no Material Amendment/Waiver shall have the effect of altering the pro rata treatment of the Lenders under the New First Lien
Credit Agreement, (ii) any waiver or extension of, or amendment to, the Outside Date, or (iii) any of the provisions of this Section 29. 

Section 30. Counterparts. 

This Agreement may be executed in one or more counterparts, each of which, when so executed, shall constitute the same instrument and the
counterparts may be delivered by facsimile transmission or by electronic mail in portable document format (.pdf). 
 Section 31.
Public Disclosure. 
 At all times prior to the Effective Date or the earlier termination of this Agreement in accordance with its
terms, (i) the Company, on the one hand, and the Consenting Term Loan Lender Steering Committee, on the other hand, and (ii) the Company, on the one hand, and the Consenting Equityholders, on the other hand, shall consult with such
counterparty prior to issuing any press releases or other public notices with respect to the transactions contemplated hereby or the Chapter 11 Plan, and shall provide such counterparty with an opportunity to review and comment on any such press
release or other notice a reasonable amount of time (and not less than one day, unless otherwise agreed) before it is made and shall consider in good faith any comments made by such reviewing party, and the Company is expressly permitted to disclose
this Agreement or its terms in accordance with any applicable law, rule, or regulation. Notwithstanding the foregoing, any press releases, public documents, or any filings required by applicable state or federal law in each case disclosed by the
Company shall be in form and substance reasonably acceptable in all material respects to the Majority Consenting Term Loan Lenders and the Consenting Equityholders. 

Except as required by applicable law or otherwise permitted under the terms of any other agreement between the Company and any Consenting Term
Loan Lender, no Party or its advisors shall disclose to any person, other than advisors to the Company, the principal amount of the Term Loans held by such Consenting Term Loan Lender, without such Consenting Term Loan Lender’s prior written
consent; provided, however, that (i) if such disclosure is required by law, subpoena, or other legal process or regulation, the disclosing Party shall afford the relevant Consenting Term Loan Lender a reasonable opportunity to
review and comment in advance of such disclosure and shall take all reasonable measures to limit such disclosure (the expense of which, if any, shall be borne by the relevant Consenting Term Loan Lender) and (ii) the foregoing shall not
prohibit the disclosure of the aggregate percentage or aggregate outstanding principal amount of the Term Loans held by all the Consenting Term Loan Lenders collectively. 

  
 27 

 Section 32. Confidentiality. 

The information in this Agreement is confidential (“Confidential Information”). Each of the Company, the Consenting Term Loan
Lenders, and the Consenting Equityholders agrees to only use such Confidential Information for consideration of the transactions contemplated by this Agreement and to keep such information confidential until the earlier of (i) the Petition Date
or (ii) the termination of this Agreement. Notwithstanding the foregoing, Consenting Term Loan Lenders and Consenting Equityholders that are fund entities are expressly permitted to share this Agreement with their affiliates and their
respective investment advisers. In all cases, each of the Company, the Consenting Term Loan Lenders and the Consenting Equityholders is expressly permitted to share this Agreement with its managers, directors, officers, members, partners,
associates, employees, attorneys, subcontractors, consultants, accountants, auditors, advisors, or agents (collectively, its “Representatives”). 

Section 33. No Liability. 

Each of the Company and the Consenting Equityholders acknowledges and agrees that none of the Consenting Term Loan Lenders shall have any
liability to any of the Consenting Equityholders as a result of a breach by any Consenting Term Loan Lender of any term of this Agreement, or by any action or failure to take any action by or on behalf of any Consenting Term Loan Lender in
connection with this Agreement. 
 Each of the Company and the Consenting Term Loan Lenders acknowledges and agrees that none of the
Consenting Equityholders shall have any liability to any of the Consenting Term Loan Lenders as a result of a breach by any Consenting Equityholder of any term of this Agreement, or by any action or failure to take any action by or on behalf of any
Consenting Equityholder in connection with this Agreement. 
 For the avoidance of doubt, the provisions of this Section 33 only
address the rights and obligations as between the Consenting Term Loan Lenders, on the one hand, and the Consenting Equityholders, on the other hand, and nothing in this Section 33 shall limit, impair or release any liability of the
Consenting Term Loan Lenders or the Consenting Equityholders, as applicable, to the Company as a result of a breach by any Consenting Term Loan Lender or Consenting Equityholder, as applicable, of any term of this Agreement, or by any action or
failure to take any action by or on behalf of any Consenting Term Loan Lender or Consenting Equityholder, as applicable, in connection with this Agreement, and all such rights and remedies of the Company are fully reserved. 

Section 34. Independent Analysis. 

Each of the Company, the Consenting Term Loan Lenders, and the Consenting Equityholders hereby confirms that it has made its own decision to
execute this Agreement based upon its own independent assessment of documents and information available to it, as it has deemed appropriate. 

  
 28 

 Section 35. Representation by Counsel. 

Each Party acknowledges that it has had the opportunity to be represented by counsel in connection with this Agreement and the transactions
contemplated by this Agreement. Accordingly, any rule of law or any legal decision that would provide any Party with a defense to the enforcement of the terms of this Agreement against such Party based upon lack of legal counsel, shall have no
application and is expressly waived. 
 Section 36. No Admissions. 

This Agreement shall in no event be construed as, or deemed to be evidence of, an admission or concession on the part of any Party of any claim
or fault or liability or damages whatsoever. Each of the Parties denies any and all wrongdoing or liability of any kind and does not concede any infirmity in the claims and defenses which it has asserted or could assert. No Party shall have, by
reason of this Agreement, a fiduciary relationship in respect of any other Party or any person or entity, or the Company, and nothing in this Agreement, expressed or implied, is intended to, or shall be construed as to, impose upon any Party any
obligation in respect of this Agreement except as expressly set forth herein. 
 Section 37. Headings. 

The section headings of this Agreement are for convenience of reference only and shall not, for any purpose, be deemed a part of this
Agreement. 
 Section 38. Interpretation. 

This Agreement is the product of negotiations among the Parties, and the enforcement or interpretation hereof, is to be interpreted in a
neutral manner, and any presumption with regard to interpretation for or against any Party by reason of that Party having drafted or caused to be drafted this Agreement or any portion hereof, shall not be effective in regard to the interpretation
hereof. 
 [SIGNATURE PAGES FOLLOW] 
  

  
 29 

 Accepted as of the date first written above: 

Cumulus Media Inc., on behalf of itself and each of its direct and indirect subsidiaries listed on Annex A to the Term Sheet 

 

			
	By:	 	 /s/ Richard S. Denning

		 	Name: Richard S. Denning
		 	Title: SVP

 [Signature Page to Restructuring Support Agreement] 

 

 EXHIBIT A TO THE RESTRUCTURING SUPPORT AGREEMENT 

Term Sheet 

 Execution Version 

 
  

CUMULUS MEDIA INC., ET AL. 

RESTRUCTURING TERM SHEET 

November 29, 2017 
  

 
 THIS TERM SHEET AND THE
EXHIBITS ATTACHED HERETO (THE “TERM SHEET”) DOES NOT CONSTITUTE (NOR SHALL IT BE CONSTRUED AS) AN OFFER WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF ACCEPTANCES OR REJECTIONS AS TO ANY EXCHANGE OR PLAN OF REORGANIZATION, IT
BEING UNDERSTOOD THAT SUCH A SOLICITATION, IF ANY, SHALL BE MADE ONLY IN COMPLIANCE WITH SECTION 4(A)(2) OF THE SECURITIES ACT OF 1933 AND APPLICABLE PROVISIONS OF SECURITIES, BANKRUPTCY, AND/OR OTHER APPLICABLE STATUTES, RULES, AND LAWS. 

THIS TERM SHEET DOES NOT ADDRESS ALL MATERIAL TERMS THAT WOULD BE REQUIRED IN CONNECTION WITH ANY POTENTIAL RESTRUCTURING AND ANY AGREEMENT IS SUBJECT TO
THE EXECUTION OF DEFINITIVE DOCUMENTATION IN FORM AND SUBSTANCE CONSISTENT WITH THIS TERM SHEET.1 

This Term Sheet sets forth the principal terms of a proposed restructuring (the “Restructuring”) of the existing debt of the Company (as
defined below) under the Credit Agreement (as defined below), the Senior Notes (as defined below), and certain other obligations of, and existing equity interests in, the Company through a “pre-negotiated” plan of reorganization (the
“Chapter 11 Plan”) and disclosure statement (the “Disclosure Statement”) to be filed by the Company in connection with commencing cases (the “Chapter 11 Cases”) in the United States
Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”). Following consummation of the Restructuring,
Cumulus (as defined below) shall be referred to herein as “Reorganized Cumulus”. 
  

 

	1 	The “Term Lender Group” means the group of Consenting Term Loan Lenders (as defined herein) represented by Arnold & Porter Kaye Scholer LLP on the date hereof, and, in each case, to the extent
each such Consenting Term Loan Lender continues to hold Term Loan Claims. The “Term Lender Group Professionals” consist of Arnold & Porter Kaye Scholer LLP, FTI Consulting, Inc., Fortgang Consulting, LLC and
Aloise & Associates, LLC. 

			
	 Restructuring Support Parties

		
	Company	  	Cumulus Media Inc. (“Cumulus”) on behalf of itself and certain of its subsidiaries listed on Annex A hereto (collectively with Cumulus, the “Company”).
		
	Consenting Term Loan Lenders	  	Certain beneficial holders of, or the investment advisor or the investment manager to certain beneficial holders of, Term Loan Claims (as defined below) representing at least two-thirds of the aggregate amount of all outstanding
Term Loan Claims (which shall include, for the avoidance of doubt, the Term Lender Group) (collectively, the “Consenting Term Loan Lenders”), each of whom will execute one or more restructuring support agreements (each an
“RSA”) binding them to take or refrain from taking certain actions in support of the Restructuring of the Company on terms and conditions materially consistent with this Term Sheet.
		
	Consenting Shareholders	  	Crestview Radio Investors, LLC (“Crestview”), Lewis W. Dickey, Jr., John W. Dickey, Michael W. Dickey, Lewis W. Dickey, Sr., and DDBC, LLC (collectively, the “Dickey Group Stockholders”), and any
other stockholder may execute an RSA binding them to take or refrain from taking certain actions in support of the Restructuring and to preserve the value of the Company’s tax attributes on terms and conditions materially consistent with this
Term Sheet. Any stockholders that have executed such an RSA shall be collectively referred to as the “Consenting Equityholders” and, together with the Company and the Consenting Term Loan Lenders, the “Restructuring Support
Parties”. For the avoidance of doubt, execution of an RSA or other support for the Restructuring by Crestview, the Dickey Group Stockholders, or any other existing shareholder shall not be a condition of the Restructuring.
	
	 Proposed Treatment of Claims and Interests Under the Chapter 11
Plan

		
	Administrative, Priority Tax, and Other Priority Claims, Other Secured Claims	  	Unless a holder of an allowed administrative, priority tax, other priority claim, or other secured claim agrees to a lesser treatment, on the Effective Date (as defined below) or as soon as reasonably practicable thereafter, each
holder of such an administrative, priority tax, other priority claim, or other secured claim will, at the option of the Company (with the reasonable consent of the Term Lender Group), (a) be reinstated, (b) receive, in full and final
satisfaction, compromise, settlement, release, and discharge of and in exchange for such claim, cash equal to the full amount of its claim, or (c) with respect to other secured claims, delivery of the collateral security any such claim and payment
of any interest required under section 506(b) of the Bankruptcy Code.
		
	Term Loan Claims	  	 Unless a holder of a Term Loan Claim (as defined herein) agrees to a lesser treatment, on the Effective Date (as defined below) or as soon as
reasonably practicable thereafter, each holder of an allowed Term Loan Claim will receive, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for such Term Loan Claim, its pro rata share and
interest in:
  

(a)   $1,300 million in principal amount of first lien term loans (the “New First
Lien Debt”), the material terms of which are set forth on Annex B hereto, to be deemed borrowed by Reorganized Cumulus pursuant to the Chapter 11 Plan on the Effective
Date.

  
 2 

			
		  	 (b)   83.5% of the issued and outstanding amount of the sole class of equity to be
issued by Reorganized Cumulus (the “Reorganized Common Equity”), subject to dilution on account of the Post-Emergence Equity Incentive Program (as defined below).

 
 As used in this Term Sheet, “Term Loan Claims” means all claims (as
defined in section 101(5) of the Bankruptcy Code) against the Company arising under, relating to, or in connection with that certain Amended and Restated Credit Agreement, dated as of December 23, 2013, among Cumulus and Cumulus Media Holdings
Inc., as borrower, certain lenders party thereto (the “Term Lenders”), and JPMorgan Chase Bank, N.A., as administrative agent (the “Agent”) (as amended, restated, supplemented, or otherwise modified from time to
time, the “Credit Agreement”). As of the date hereof, the total outstanding principal amount of the Company’s obligations under the Credit Agreement is approximately $1,729 million (the “Term Loans”). The
Term Loan Claims will continue to accrue interest at the non-default rate on the terms set forth in the Credit Agreement and payments shall be made in cash, as adequate protection, on a current basis on the
terms set forth in the Cash Collateral Order; provided, that the Consenting Term Loan Lenders reserve the right to assert the imposition of default interest if the Consenting Term Loan Lender RSAs are terminated in accordance with their terms.

 
 Notwithstanding the foregoing, the Company and the Term Lender Group may determine, in
their reasonable discretion, to provide the Term Lenders an alternative bundling of the New First Lien Debt and the Reorganized Common Equity contemplated herein, through a restricted issuance of the Reorganized Common Equity to be issued to
electing Term Lenders that may be collateralized loan obligation funds (the “CLO Holders”) to address, among other things, certain structural limitations and requirements of the CLO Holders in holding equity securities; provided
that, the imposition of such an alternative structure or restricted issuance shall not adversely affect the proposed treatment of the Term Loan Claims as set forth herein, the Company, the CLO Holders or the Term Lenders.

		
	Convenience Claims	  	 Unless a holder of an allowed Convenience Claim (as defined below) agrees to lesser treatment, on or as soon as reasonably practicable
following the Effective Date, each holder of an allowed Convenience Claim will receive, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for such allowed Convenience Claim, cash in an amount equal to
100% of the allowed Convenience Claim; provided that cash distributions to holders of allowed Convenience Claims shall not exceed $2 million in the aggregate without the prior written consent of the Term Lender Group.

 
 As used in this Term Sheet, a “Convenience Claim” means a general
unsecured claim that is either (a) equal to or less than $20,000 or (b) greater than $20,000, but with respect to which the holder thereof voluntarily reduces the aggregate amount of such claim to $20,000 pursuant to an election by the claimholder
made on the ballot provided for voting on the Chapter 11 Plan by the voting deadline.

  
 3 

			
	Senior Notes Claims	  	 Unless a holder of an allowed Senior Notes Claim (as defined below) agrees to a lesser treatment, on or as soon as reasonably practicable
following the Effective Date, each holder of an allowed Senior Notes Claim will receive, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for such allowed Senior Notes Claim, its pro rata share and
interest (calculated based on the aggregate amount of allowed Senior Notes Claims and allowed General Unsecured Claims, in each case, as defined below) in 16.5% of the Reorganized Common Equity, subject to dilution on account of the Post-Emergence
Equity Incentive Program (as defined below) (the “Unsecured Equity Recovery Pool”).
  

As used in this Term Sheet, “Senior Notes Claims” means all claims (as defined in section 101(5) of the Bankruptcy Code) against the
Company arising under, relating to, or in connection with the Company’s 7.75% Senior Notes due 2019 (the “Senior Notes”) issued pursuant to that certain Indenture, dated as of May 13, 2011, by and between the Company,
the guarantors named therein, and U.S. Bank National Association, as trustee, transfer agent, registrar, authentication agent, and paying agent (as amended, restated, supplemented, or otherwise modified from time to time, the “Senior Notes
Indenture”). As of the date hereof, the total outstanding principal amount of the Company’s obligations under the Senior Notes Indenture is $610 million.

		
	General Unsecured Claims2	  	 Unless a holder of an allowed General Unsecured Claim (as defined below) agrees to a lesser treatment, on or as soon as reasonably
practicable following the Effective Date, each holder of an allowed General Unsecured Claim will receive, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for such allowed General Unsecured Claim, its
pro rata share and interest (calculated based on the aggregate amount of allowed Senior Notes Claims and allowed General Unsecured Claims) in the Unsecured Equity Recovery Pool.

 
 As used in this Term Sheet, “General Unsecured Claims” means all
non-priority unsecured claims of the Company other than Senior Notes Claims and Convenience Claims.

		
	Section 510(b) Claims	  	 The Section 510(b) Claims (as defined below) shall be subordinated to all other claims against the Company.

 
 On the Effective Date, each holder of a Section 510(b) Claim shall receive no
distribution on account thereof and each Section 510(b) Claim shall be discharged.
  

As used in this Term Sheet, “Section 510(b) Claims” means all claims (as defined in section 101(5) of the Bankruptcy Code) against the
Company that are described in section 510(b) of the Bankruptcy Code. Pursuant to section 510(b) of the Bankruptcy Code, the Merlin Claims (as defined below) will be classified as Section 510(b) Claims.

 
 As used in this Term Sheet, “Merlin Claims” means all claims (as
defined in section 101(5) of the Bankruptcy Code) against the Company arising under, relating to, or in connection with that certain Put and Call Agreement, dated as of January 2, 2014, by and among Merlin Media, LLC, Merlin Media License,
LLC, Chicago FM Radio Assets, LLC, and Radio License Holdings LLC for WLUP-FM and WIQI(FM) (the “Put/Call Agreement”).

 

	2 	The Company reserves the right to preserve ongoing trade / landlord / on-air talent relations through (i) critical vendor relief, (ii) on-air talent relief, and/or (iii) contract and lease assumption,
with any motions or other Bankruptcy Court pleadings seeking authority to make payments on account of prepetition unsecured claims to entities identified in (i)—(iii) subject to the prior consent of the Term Lender Group (which consent
shall not be unreasonably withheld). 

  
 4 

			
		
	Cumulus Interests	  	 On the Effective Date, each holder of an allowed Cumulus Interest shall receive no distribution on account thereof and each Cumulus Interest
shall be cancelled.
  
 As used in this Term Sheet, “Cumulus Interest”
means any common stock, equity security (as defined in section 101(16) of the Bankruptcy Code), equity, ownership, profit interest, unit, or share in Cumulus (including all options, warrants, rights, or other securities or agreements to obtain such
an interest or share in Cumulus), whether or not arising under or in connection with any employment agreement and whether or not certificated, vested, transferable, preferred, common, voting, or denominated “stock” or a similar
security.

		
	Intercompany Claims	  	All claims held by one Company entity against any other Company entity will be, at the option of the Company (with the reasonable consent of the Term Lender Group), either (a) reinstated, or (b) discharged without any
distribution on account of such claims.
		
	Intercompany Interests	  	All interests held by one Company entity in any other Company entity will be, at the option of the Company (with the reasonable consent of the Term Lender Group), either (a) reinstated or (b) cancelled without any
distribution on account of such interests.
	
	Implementation
		
	Claims Resolution Matters	  	Prior to the Effective Date of the Chapter 11 Plan, the Company shall not enter into any agreements with holders of claims or interests relating to the allowance, estimation, validity, extent or priority of such claims or interests,
or the classification and treatment of such claims or interests under the Chapter 11 Plan, without the reasonable consent of the Term Lender Group, except for (i) claims which the Company is authorized to pay pursuant to an applicable first day
order; (ii) undisputed administrative claims arising postpetition in the ordinary course of business; and (iii) claims for which the allowed amount is less than $1.0 million.
		
	Use of Cash Collateral	  	In connection with the Chapter 11 Cases, the Consenting Term Loan Lenders shall consent to the use of cash collateral (as such term is defined in the Bankruptcy Code) (including the proceeds of collateral), subject to customary
terms and conditions.
		
	Definitive Documentation	  	As soon as reasonably practicable, the Restructuring Support Parties will execute definitive documentation implementing the Restructuring in form and substance materially consistent with this Term Sheet.
	ABL/Revolving Facility	  	On the Effective Date, Reorganized Cumulus shall have the option, in its sole discretion, to enter into (i) a new revolving credit facility (which may or may not be an ABL) or a receivable securitization facility, subject to a
borrowing base consisting of accounts receivable, or (ii) a new revolving loan facility secured by substantially all of the Reorganized Cumulus’s assets on a pari passu basis with the New First Lien Debt, in either case providing
commitments of up to $50 million in the aggregate (the “New Revolving Facility”). If the Company elects to exercise this option, the

  
 5 

			
		  	New Revolving Facility shall be undrawn on the Effective Date. For the avoidance of doubt, (i) on the Petition Date, the revolving credit facility under the existing Credit Agreement shall be terminated and cancelled, and (ii) on
the Effective Date, any outstanding Obligations (as defined in the Credit Agreement) as of the Effective Date with respect to the revolving credit facility under the existing Credit Agreement shall be paid in full in cash.
		
	Conditions Precedent to Effectiveness of Plan	  	 The court order confirming the Chapter 11 Plan (the “Confirmation Order”) shall be deemed to authorize, among other things,
all actions as may be necessary or appropriate to effect any transaction described in or contemplated by, or necessary to effectuate the Chapter 11 Plan, including the borrowings by Reorganized Cumulus under the New First Lien Debt and the New
Revolving Facility, and the issuance of all securities, instruments, certificates and other documents required to be issued pursuant to the Restructuring.
  

The “Effective Date” shall occur upon the satisfaction or waiver by the Company and the Term Lender Group of the following conditions precedent:

 
 (1)   the Bankruptcy Court shall
have entered the Confirmation Order, which shall be in form and substance satisfactory to the Term Lender Group and the Company;
  

(2)   the Company shall have obtained all authorizations, consents, regulatory approvals, rulings,
waivers or other documents that are necessary to implement and effectuate the Chapter 11 Plan and evidence thereof shall have been delivered to the Term Lender Group;
  

(3)   the payment by the Company of (a) all reasonable and documented fees and out-of-pocket expenses
payable to the Agent (including one counsel to the Agent), and (b) all reasonable and documented fees and out-of-pocket expenses of Arnold & Porter Kaye Scholer LLP, FTI Consulting Inc., Fortgang Consulting, LLC and Aloise & Associates, LLC,
in either case incurred in connection with the preparation, negotiation, or execution of the Restructuring, this Term Sheet, the Chapter 11 Plan, and other matters relating to the Credit Agreement; provided, that, except with
respect to the fees and expenses of Arnold & Porter Kaye Scholer LLP and FTI Consulting Inc., in no event shall the fees and expenses of Term Lender Group Professionals (i) incurred prior to the RSA Effective Date exceed $75,000 in the aggregate
and (ii) incurred between the RSA Effective Date (as defined in the RSA) and the Effective Date exceed $150,000 in the aggregate, or such higher amount that shall be subject to the prior written consent of the Company, such consent not to be
unreasonably withheld; and
  

(4)   the Company shall have satisfied all conditions precedent set forth in the credit agreement
evidencing the New First Lien Debt.

  
 6 

			
	 Corporate Governance and Management Incentive Plans

		
	Board of Directors	  	 The Board of Directors of Reorganized Cumulus (the “New Board”) shall consist of Mary Berner, as President and Chief
Executive Officer of the Company, and six (6) directors chosen by the Term Lender Group. Prior to the filing of the Chapter 11 Cases, the Term Lender Group shall appoint a committee responsible for interviewing and selecting the six additional
directors (the “Selection Committee”). The Chief Executive Officer of the Company shall have the right to interview potential director candidates selected by the Term Lender Group and consult with the Term Lender Group regarding
such candidates. The Selection Committee may take recommendations for potential directors from the Chief Executive Officer, a qualified search firm, or any Consenting Term Loan Lender.

 
 The initial term of the New Board will be through the date of the 2019 annual meeting.
The members of the New Board will be identified at or prior to the Effective Date.

		
	Corporate Governance Documents	  	 In connection with the consummation of the Chapter 11 Plan, and consistent with section 1123(a)(6) of the Bankruptcy Code, Reorganized
Cumulus shall adopt customary corporate governance documents, including an amended and restated certificate of incorporation, bylaws, and a shareholders’ agreement, the terms of which shall be satisfactory in all respects to the Term Lender
Group and the Company (collectively, the “Corporate Governance Documents”).
  

Existing corporate governance documents will be amended and restated or terminated, as necessary, to, among other things, set forth the rights and obligations
of the parties (consistent with this Term Sheet), the terms of which shall be satisfactory in all respects to the Term Lender Group and the Company. The Corporate Governance Documents shall provide, among other things, (i) that the Chief Executive
Officer of the Company shall at all times be a member of the Board of Directors, (ii) for ordinary and customary indemnification obligations of the Company, and (iii) to the extent the Reorganized Common Equity is not traded on a public exchange,
the Company shall provide shareholders with quarterly and annual reports similar in form to SEC forms 10-Q and 10-K, respectively, through a portal accessible to shareholders.

 
 Notwithstanding anything to the contrary in this Term Sheet, the Company’s
indemnification obligations in place as of the date hereof, whether in the bylaws, certificates of incorporation or formation, limited liability company agreements, other organizational or formation documents, board resolutions, management or
indemnification agreements, employment contracts, or otherwise, for the benefit of the Company’s current and former directors and officers, shall be assumed on the Effective Date.

		
	Existing Management Employment Agreements	  	All employment and compensation-related agreements of the Company as of the Petition Date, including any indemnification and severance obligations, and incentive compensation plans related thereto, shall be assumed. Each
Restructuring Support Party shall support any motion the Company files seeking authority to assume any management employment agreements, management consulting agreements, and other employee compensation-related agreements that are existing and
effective as of the Petition Date (and which, for the avoidance of doubt, are not entered into by the Company on or after the Petition Date).

  
 7 

			
	Issuance of Reorganized Common Equity Under the Chapter 11 Plan	  	It is the intent of the parties that any “securities” as defined in section 2(a)(1) of the Securities Act of 1933 issued under the Chapter 11 Plan, except with respect to any entity that is an underwriter, shall be exempt
from registration under U.S. state and federal securities laws pursuant to section 1145 of the Bankruptcy Code and Reorganized Cumulus will utilize section 1145 of the Bankruptcy Code, or to the extent that such exemption is unavailable, shall
utilize any other available exemptions from registration, as applicable.
		
	Management Incentive Plans	  	The material terms of the management equity incentive program (the “Post-Emergence Incentive Equity Program”) are set forth on Annex C.
	
	Regulatory
		
	Regulatory Requirements	  	All parties shall abide by, and use their commercially reasonable efforts to obtain, any regulatory and licensing requirements or approvals to consummate the Restructuring as promptly as practicable including, but not limited to
requirements or approvals that may arise as a result of such party’s equity holdings in Reorganized Cumulus.
	
	Miscellaneous Provisions
		
	Additional Plan Provisions and Documentation	  	The Chapter 11 Plan shall contain other customary provisions for chapter 11 plans of this type. The Chapter 11 Plan, plan supplement, Disclosure Statement, form of Chapter 11 Plan ballots, Confirmation Order and Corporate Governance
Documents shall be in form and substance satisfactory to the Term Lender Group and the Company in all respects.
		
	Fiduciary Duties	  	Nothing in this Term Sheet or any RSA shall require the Company to take any action, or to refrain from taking any action, if doing so would be inconsistent with its fiduciary obligations under applicable law (as reasonably
determined by it) (any such determination, a “Fiduciary Decision”); provided, that the Company shall provide notice of any such Fiduciary Decision to counsel to the Term Lender Group via email within one (1) day of the date
of such determination.
		
	Releases/Exculpation	  	The Chapter 11 Plan and the Confirmation Order will provide full releases (including debtor and third-party releases) and exculpation provisions for the benefit of the Company, Reorganized
Cumulus, the Agent, the Consenting Term Loan Lenders, the Consenting Equityholders, the manager, management company or investment advisor of any of the foregoing, and, each of such entities’ respective current and former affiliates, and such
entities’ and their current and former affiliates’ current and former officers, managers, directors, equity holders (regardless of whether such interests are held directly or indirectly), predecessors, successors, assigns, subsidiaries,
principals, members, employees, agents, independent contractors, managed accounts or funds, management companies, fund advisors, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants,
representatives, and other professionals, each in their capacity as such.

  
 8 

			
		
	Tax Issues	  	To the extent possible, the Restructuring contemplated by this Term Sheet shall be structured so as to obtain the most beneficial tax structure for Reorganized Cumulus and the holders of the Reorganized Common Equity as reasonably
determined by the Company and the Term Lender Group including, without limitation, with respect to the sale of the Company’s property in Bethesda, Maryland, during the Chapter 11 Cases.
		
	Professional Fees	  	As adequate protection against the diminution in value of the Term Lenders’ Collateral (as defined in the Credit Agreement) during the pendency of the Chapter 11 Cases, the Company shall pay the reasonable and documented fees
and out-of-pocket expenses of (i) the Term Lender Group Professionals (to the extent set forth in the Cash Collateral Order), and (ii) the Agent, including one primary counsel to the Agent, in each case on a current basis during the Chapter 11
Cases.

  
 9 

 Annex A 

Cumulus Subsidiaries 
  

	 	•	 	Cumulus Media Inc. 

  

	 	•	 	Cumulus Media Holdings Inc. 

  

	 	•	 	Consolidated IP Company LLC 

  

	 	•	 	Broadcast Software International 

  

	 	•	 	Incentrev-Radio Half Off, LLC 

  

	 	•	 	Cumulus Intermediate Holdings Inc. 

  

	 	•	 	Incentrev LLC 

  

	 	•	 	Cumulus Network Holdings Inc. 

  

	 	•	 	Cumulus Radio Corporation 

  

	 	•	 	LA Radio, LLC 

  

	 	•	 	KLOS-FM Radio Assets, LLC 

  

	 	•	 	Detroit Radio, LLC 

  

	 	•	 	DC Radio Assets, LLC 

  

	 	•	 	Chicago FM Radio Assets, LLC 

  

	 	•	 	Chicago Radio Assets, LLC 

  

	 	•	 	Atlanta Radio, LLC 

  

	 	•	 	Minneapolis Radio Assets, LLC 

  

	 	•	 	NY Radio Assets, LLC 

  

	 	•	 	Radio Assets LLC 

  

	 	•	 	San Francisco Radio Assets, LLC 

  

	 	•	 	WBAP-KSCS Assets, LLC 

  

	 	•	 	WPLJ Radio, LLC 

  

	 	•	 	Westwood One, Inc. 

  

	 	•	 	CMP Susquehanna Radio Holdings Corp. 

  

	 	•	 	Cumulus Broadcasting LLC 

  

	 	•	 	Dial Communications Global Media, LLC 

  

	 	•	 	Radio Networks, LLC 

  

	 	•	 	Westwood One Radio Networks, Inc. 

  

	 	•	 	CMP Susquehanna Corp. 

  

	 	•	 	Catalyst Media, Inc. 

  

	 	•	 	CMI Receivables Funding LLC 

  

	 	•	 	Susquehanna Pfaltzgraff Co. 

  

	 	•	 	CMP KC Corp. 

  

	 	•	 	Susquehanna Media Corp. 

  

	 	•	 	Susquehanna Radio Corp. 

  

	 	•	 	KLIF Broadcasting, Inc. 

  

	 	•	 	Radio Metroplex, Inc. 

 Annex B 

CUMULUS NEW FIRST LIEN DEBT 

 Annex B 

CUMULUS NEW FIRST LIEN DEBT 

PRINCIPAL TERMS AND CONDITIONS1 

 

			
	BORROWER:	  	Reorganized Cumulus
		
	GUARANTORS:	  	The direct parent of Reorganized Cumulus (the “Parent”) and all present and future wholly-owned subsidiaries of the Parent (subject to exceptions that are substantially consistent with those set forth in the
Existing Credit Agreement, excluding any exception for Unrestricted Subsidiaries) (collectively, the “Guarantors”).
		
	AMOUNT OF NEW FIRST LIEN DEBT:	  	 $1.3 billion.
  

There will no ability for the Borrower or its Subsidiaries to incur or obtain any incremental term or revolving loans (or commitments) under the documentation
evidencing the New First Lien Debt.

		
	ADMINISTRATIVE AGENT:	  	JPMorgan Chase Bank, N.A. (or, to the extent JPMorgan Chase Bank, N.A. does not serve in such capacity, another institution selected by the Term Lender Group and reasonably acceptable to the Borrower) (the
“Agent”)
		
	INTEREST RATE:	  	LIBOR plus 4.50% per annum., subject to a LIBOR floor of 1.00% (the “LIBOR Loans”) or, at the Borrower’s option, ABR plus 3.50% per annum, subject to a ABR floor of 2.00%.
		
	MATURITY DATE:	  	May 15, 2022
		
	AMORTIZATION:	  	One percent (1%) of the aggregate outstanding principal amount of the New First Lien Debt as of the Effective Date shall be payable annually to be repaid in equal quarterly installments. The remainder of the aggregate outstanding
principal amount of the New First Lien Debt shall be payable at maturity. Scheduled amortization payments to be reduced by all optional prepayments and mandatory prepayments (e.g., prepayments made with asset sale proceeds) in inverse order of
maturity.

  

	1 	Capitalized terms used herein and not defined herein shall have the meanings set forth in the Term Sheet to which this Annex B is attached, or if not defined in the Term Sheet, in the Credit Agreement referred to in the
Term Sheet (such Credit Agreement, the “Existing Credit Agreement”). 

			
		
	SECURITY:	  	 The New First Lien Debt will be secured by first priority security interests in all the assets of the Borrower and the Guarantors in a manner
substantially consistent with the Existing Credit Agreement; provided, that (i) the Borrower and Guarantors shall not be required to grant a lien on any real property that is not owned US real property, (ii) any real property assets
having a value of less than $500,000 shall either be (x) subject to a mortgage in favor of the Administrative Agent or (y) excluded from any requirement to obtain a mortgage; provided that the aggregate value of all real properties not subject to a
mortgage in favor of the Administrative Agent in reliance of this clause (y) shall not exceed $25.0 million and (iii) if applicable, the New First Lien Debt will be secured by a second priority security interest in accounts receivable and
other customary collateral for a receivables-based asset-based credit facility of the Borrower and Guarantors and the proceeds thereof (collectively, “ABL Priority Collateral”) to the extent securing a Permitted Revolver (as defined
below), and (to the extent there is a Permitted Revolver) the New First Lien Debt will otherwise be subject to customary cross-lien provisions with such Permitted Revolver. Within 60 days after the Effective Date (or such later date as reasonably
agreed by the Agent), the Borrower and Guarantors will enter into control agreements in favor of the Agent on all deposit accounts (other than certain customary exceptions to be agreed, including tax, payroll and trust accounts, zero balance
accounts, sweep accounts and accounts with a value equal to or lower than an average monthly balance of $500,000 (subject to an aggregate exclusion of $5.0 million for such accounts with an average monthly balance that is equal to or lower than
$500,000)).
  
 The Borrower and Guarantors shall have up to 180 days after the
Effective Date (or such later date as agreed by the Agent), to execute and deliver any mortgages or other related documentation to perfect any liens required to be granted over any real property.

 
 The priority of the security interests and related creditor rights between the New First
Lien Debt and a Permitted Revolver will be set forth in an intercreditor agreement customary for facilities of this type and otherwise on terms and conditions reasonably satisfactory to the Term Lender Group and the Borrower.

		
	MANDATORY PREPAYMENTS	  	 The New First Lien Debt will be subject to mandatory prepayment on substantially similar terms as are set forth in the Existing Credit
Agreement; provided that 
  
 (i) all of the cash proceeds of the
sale of the Baltimore property, net of actual out of pocket closing costs and applicable taxes required to be paid in cash (and other customary reductions consistent with the definition of “Net Proceeds” in the Existing Credit Agreement),
shall be applied to repay the New First Lien Debt;

  
 2 

			
		
		  	 (ii) all of the cash proceeds of the sale of (x) other real estate or (y) other assets not used in the normal course of business, in each
case net of actual out of pocket closing costs and applicable taxes required to be paid in cash (and other customary reductions consistent with the definition of “Net Proceeds” in the Existing Credit Agreement), shall be applied to repay
the New First Lien Debt;
  
 (iii) Net Cash Proceeds (as defined in the Existing Credit
Agreement) of the sale of operating assets used in the ordinary course of business may, at the option of the Borrower, be either (x) reinvested solely during the 12 month period following such sale in other assets that are useful in the business of
the Borrower and Guarantors, but only to the extent such assets are (or will become) Collateral or (y) applied to repay the First Lien Debt;
  

(iv) any rights to reinvest asset sale proceeds will not include the right to apply such proceeds to maintenance operating expenses; but will, for the
avoidance of doubt, include the right to apply such proceeds to maintenance or other capital expenditures;
  

(v) unrestricted cash of the Borrower and its Subsidiaries above $35 million on the Effective Date will be swept to repay the New First Lien Debt on the
Effective Date, which amount will be calculated on the Effective Date net of any payments made or to be made in satisfaction of the Put/Call Agreement that are reasonably acceptable to the Term Lender Group;

 
 (vi) commencing with the fiscal year of Borrower ending on or about December 31,
2018, 75% of Excess Cash Flow, with a reduction to 50% based upon achievement of Consolidated Total Net Leverage Ratio not exceeding 4.5 to 1.0; provided that any voluntary par prepayments of the New First Lien Debt or permitted repurchases of the
New First Lien Debt (as set forth below under the section of this term sheet entitled “Optional Prepayments”) shall be credited against Excess Cash Flow prepayment obligations on a dollar-for-dollar basis (and, in the case of the New First
Lien Debt prepaid or repurchased at a discount to par, with such reduction of the amount of Excess Cash Flow prepayments being equal to the amount of cash spent to make such prepayment or repurchase (as opposed to the face amount of loans so
prepaid)) to the extent such prepayment is financed with Internally Generated Cash (as defined below).

		
	OPTIONAL PREPAYMENTS:	  	For a period of 6 months following issuance of the New First Lien Debt (the “Call Protection Period”), the New First Lien Debt may be voluntarily prepaid in whole or in part only if such voluntary prepayment is
accompanied by a premium equal to 1% of the principal amount of the outstanding New First Lien Debt so prepaid. Upon expiration of the Call Protection Period, the New First Lien Debt may be voluntarily prepaid in whole or in part without premium or
penalty, except for any breakage costs associated with LIBOR Loans. In addition, the New First Lien Debt shall be permitted to be prepaid or repurchased at a discount to par consistent with the Existing Credit Agreement, except that (x) such
prepayments and repurchases shall be limited to $50 million per year, (y) after giving effect to any such prepayment or repurchase, the Borrower and its Subsidiaries shall have cash and availability under a Permitted Revolver of at least $25 million
in the aggregate and (z) any such prepaid or repurchased First Lien Debt shall be automatically cancelled.

  
 3 

			
		
	REPRESENTATIONS AND WARRANTIES:	  	Substantially similar to those set forth in the Existing Credit Agreement, with such changes as are agreed to by the Borrower and the Term Lender Group.
		
	AFFIRMATIVE COVENANTS:	  	Substantially similar to those set forth in the Existing Credit Agreement, with such changes as are set forth below under the section of this term sheet entitled “Certain Specified Exceptions” or as are otherwise agreed to
by the Borrower and the Term Lender Group.
		
	NEGATIVE COVENANTS:	  	Substantially similar to those set forth in the Existing Credit Agreement, with such changes as are set forth below under the section of this term sheet entitled “Certain Specified Exceptions” or as are otherwise agreed to
by the Borrower and the Term Lender Group. For the avoidance of doubt, the affirmative covenant set forth in Section 7.13 of the Existing Credit Agreement shall continue to apply to the New First Lien Debt, including the provisions thereof requiring
that the Borrower use commercially reasonable efforts to obtain and maintain ratings from Moody’s and Standard & Poor’s for the New First Lien Debt.
		
	FINANCIAL COVENANTS:	  	No maintenance financial covenants.
		
	CERTAIN SPECIFIED EXCEPTIONS	  	The documentation evidencing the New First Lien Debt will contain terms and provisions that are substantially consistent with those set forth in the Existing Credit Agreement, except (w) as otherwise set forth in this term sheet,
(x) as otherwise agreed to by the Borrower and the Term Lender Group, (y) to remove provisions that are no longer relevant for the New First Lien Debt and (z) for the revisions listed on Schedule I to this Annex B.
		
	EVENTS OF DEFAULT:	  	Substantially similar to those set forth in the Existing Credit Agreement, with such changes as are agreed to by the Borrower and the Term Lender Group.
		
	CONDITIONS PRECEDENT:	  	Substantially similar to those set forth in the Existing Credit Agreement, with such changes as are agreed to by the Borrower and the Term Lender Group.

  
 4 

			
		
	ASSIGNMENTS:	  	Substantially similar to those set forth in the Existing Credit Agreement, with the removal of assignments to Affiliated Lenders (except for, the avoidance of doubt, repurchases at a discount as and to the extent provided under the
section of this term sheet entitled Optional Prepayments) and such other changes as are agreed to by the Borrower and the Term Lender Group.
		
	AMENDMENTS, WAIVERS AND CONSENTS:	  	Substantially similar to those set forth in the Existing Credit Agreement, with such changes as are agreed to by the Borrower and the Term Lender Group.
		
	GOVERNING LAW:	  	New York.

  
 5 

 SCHEDULE I to ANNEX B 

 

			
	 PROVISION IN EXISTING CREDIT

AGREEMENT
	  	 CHANGE TO BE MADE

	Provisions relating to the revolving credit facility provided in the Existing Credit Agreement	  	 Provisions removed.
  

Borrower and the Guarantors will be permitted to obtain a new revolving credit facility (which may or may not be an ABL) or a receivable securitization
facility (but not both) secured by some or all of the collateral securing the New First Lien Debt; provided, that (i) the aggregate principal amount of such revolving credit facility or securitization facility (including the commitments
thereunder) shall not at any time exceed $50 million, (ii) any cash-flow revolving credit facility may be secured by the Collateral on a pari passu basis with the New First Lien Debt, (iii) in the case of a revolving credit facility in the form of
an ABL, except for liens on ABL Priority Collateral (which liens on such ABL Priority Collateral securing the ABL may be senior to the liens on such ABL Priority Collateral securing the New First Lien Debt), the liens securing the New First Lien
Debt shall be senior to the liens securing such new revolving credit facility and (iv) in the case of a revolving credit facility (other than a securitization facility), such liens shall be subject to an intercreditor agreement, which shall be
customary for transactions of this type and otherwise on terms and conditions reasonably satisfactory to the Required Lenders (such revolving facility or securitization facility satisfying the requirements herein being referred to herein as a
“Permitted Revolver”). Except as provided above, the terms and provisions regarding a securitization facility in the documentation evidencing the New First Lien Debt shall be substantially consistent with those set forth in the
Existing Credit Agreement.

		
	Available Amount (and related uses throughout Existing Credit Agreement)	  	Provisions remain with removal of parts of the definition that are no longer relevant except that (i) the starting amount (clause (a) of the definition of Available Amount) shall be $50 million and (ii) the Available Amount
shall only be permitted to be used to increase the amount of Investments by the Borrower and its Restricted Subsidiaries (and not for Restricted Payments or any other purpose)

			
		
	Change in Control	  	 Clause (a) of the definition revised to provide as follows:
  

“(a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities
Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the Restatement Effective Date), of Capital Stock representing more than 50% of the aggregate ordinary active voting power represented by the
issued and outstanding Capital Stock of Parent”.
  
 Clause (b) of the definition
revised to provide as follows:
  
 “(b) [reserved].”

 
 This provision would relate to whether the acquisition of voting Capital Stock is as a
result of a merger transaction with the Parent or otherwise.

		
	Consolidated EBITDA	  	 Addback in clause (iii) for extraordinary cash losses capped at $20 million in the aggregate for any applicable four (4) fiscal quarter
period
  
 Addback in clause (m) for cost savings and synergies capped at $20 million in
the aggregate for any applicable four (4) fiscal quarter period
  
 Addback in clause
(n) for monitoring fees, management fees or similar fees paid to Affiliates removed
  

Addback to be included with respect to Restructuring Related Expenses (as defined below).

		
	Provisions in the definitions of Consolidated First Lien Net Leverage Ratio, Consolidated Senior Secured Net Leverage Ratio and Consolidated Total Net Leverage Ratio relating to unrestricted cash and Cash Equivalents that can be
netted against applicable debt	  	Requirement added that the cash and Cash Equivalents netted has to be subject to a first priority perfected Lien in favor of the Administrative Agent or, in the case of Cash and Cash Equivalents constituting ABL Priority Collateral,
a second priority perfected lien.
		
	Excess Cash Flow	  	 Deductions listed in clauses (b)(ii), (b)(iii), (b)(vi) and (b)(vii) of the definition of Excess Cash Flow permitted only to the extent
financed with Internally Generated Cash.
  
 “Internally Generated
Cash” to be defined as cash generated from the operations of the business of Borrower and its Restricted Subsidiaries; provided that, notwithstanding the forgoing, “Internally Generated Cash” shall not include (i) the
proceeds of any long-term Indebtedness (other than revolving indebtedness), (ii) the proceeds of the issuance of any Capital Stock, (iii) the proceeds of any Reinvestment Deferred Amount or (iv) solely to the extent not increasing consolidated net
income of the Borrower during the applicable period, the proceeds of any insurance, indemnification or other payments from non-Loan Party Affiliates.

  
 2 

			
		
		  	Excess Cash Flow to also contain a deduction in clause (b) of the definition thereof for, to the extent not reducing consolidated net income of the Borrower for the applicable period, the amount of unpaid administrative costs and
unpaid professional fees in connection with the Restructuring (the “Restructuring Related Expenses”) that have not been deducted from Excess Cash Flow (or otherwise reduced Excess Cash Flow or consolidated net income) in a prior
period.
		
	Permitted Refinancing	  	The definition of Permitted Refinancing to add a requirement that to the extent the Indebtedness being refinanced is unsecured, the refinancing Indebtedness shall be unsecured
		
	Unrestricted Subsidiaries	  	All provisions relating to Unrestricted Subsidiaries (including, without limitation, the ability of the Borrower to designate Unrestricted Subsidiaries) to be removed
		
	Incremental Facilities	  	All provisions relating to Incremental Facilities (including, without limitation, the provisions of Section 4.25 of the Credit Agreement permitting the Borrower to obtain an Incremental Facility) to be removed
		
	Section 7.10 [Pledges of Capital Stock of joint ventures]	  	Add requirement, solely with respect to new joint ventures formed after the Effective Date, to have the Capital Stock of such joint venture pledged to the Administrative Agent to secure the Obligations (or, to the extent not
permitted under the applicable organizations documents of the applicable joint venture, the Borrower or applicable Subsidiary shall use commercially reasonable efforts to have such Capital Stock held by a Subsidiary Guarantor that does not have (x)
any other assets (other than the Capital Stock of other such joint ventures) and (y) any other Indebtedness or material liabilities, other than the New First Lien Debt)
		
	Section 8.2(f) [Indebtedness assumed or acquired in a Permitted Acquisition by a non-Loan Party]	  	Reduce basket from $75 million to $25 million
		
	Section 8.2(g) [Letters of credit basket]	  	Increase basket for letters of credit from $10 million to $20 million (and allow cash to be deposited with the applicable letter of credit issuers up to 105% of the face amount of such letters of credit to backstop or cash
collateralize such letters of credit)
		
	Section 8.2(j) [Purchase money indebtedness and capital leases]	  	Decrease basket from $100 million to $25 million
		
	Section 8.2(o) [Unlimited incurrences of Indebtedness if Consolidated Total Net Leverage Ratio is less than or equal to 6.25 to 1.00]	  	Delete in its entirety, and instead provide a $10 million basket for incurrences of debt secured on a junior lien basis.
		
	Section 8.2(p) [General debt basket for unsecured debt]	  	Revise to provide a basket for unsecured Indebtedness at any time outstanding in an amount not to exceed the greater of (x) $50 million and (y) such amount that would not cause the Consolidated Total Leverage Ratio to exceed
5.5x

  
 3 

			
		
	Section 8.2(q) [Basket for junior lien secured or unsecured notes]	  	Delete in its entirety
		
	Section 8.3(p) [General basket for liens incurred in the ordinary course of business]	  	Replace with a $10 million basket
		
	Section 8.3(z) [General basket for liens that are pari passu or junior to the Obligations]	  	Delete in its entirety
		
	Section 8.3(bb) [Basket for liens securing junior lien secured or unsecured notes]	  	Delete in its entirety
		
	Section 8.5 [Restriction on transfers of all or substantially all of the assets of the Borrower or any Restricted Subsidiary to any Unrestricted Subsidiary or Foreign Subsidiary]	  	Replace this provision with a restriction on transfers of all or substantially all of the assets of the Borrower or any Restricted Subsidiary to any Person that is not the Borrower or a Subsidiary Guarantor
		
	Section 8.6(c) [Sales, leases or transfers to the Borrower or a wholly-owned Restricted Subsidiary that is a Domestic Subsidiary]	  	Revise this provision to just allow a Restricted Subsidiary to consummate sales, leases and transfers to the Borrower or to a wholly-owned Restricted Subsidiary that is a Domestic Subsidiary of the Borrower and a Guarantor
		
	Section 8.7(b) [Investments in Subsidiaries that are not Subsidiary Guarantors]	  	Decrease basket from $25 million to $10 million
		
	Section 8.7(k) [Permitted Acquisitions]	  	 Limitation on acquisitions of Persons that do not become Subsidiaries Guarantors deleted and replaced with an overall cap on Permitted
Acquisitions of $75 million.
 Ratio test in clause (ii) remains the same.

		
	Section 8.7(u) [General investment basket]	  	Reduce basket to $50 million
		
	Section 8.8(c) and (d) [Management stock buybacks and payments under employee benefit plans]	  	Combine into a single basket of $5 million per year, with a carryforward of unused amounts up to a $10 million maximum amount in any year
		
	Section 8.8(b) [General basket for Restricted Payments]	  	Basket changed to be a $10 million per fiscal year basket for dividends and distributions and stock repurchases

  
 4 

 Annex C 

CUMULUS MEDIA INC. 

MANAGEMENT INCENTIVE PLAN 

 CUMULUS MEDIA INC. 

MANAGEMENT INCENTIVE PLAN 
 The following
term sheet (this “Term Sheet”) summarizes the principal terms of an Management Incentive Plan (the “Plan”) to be sponsored by Cumulus Media Inc. (the “Company”) and its subsidiaries (collectively,
the “Company Group”) and of grants to be made under the Plan upon the effectiveness of the Company’s confirmed plan of reorganization (“Emergence”). 

 

			
	Overview:	  	 •    Incentive Equity Pool. There will be reserved, exclusively for
members of the Company’s board of directors and senior management employees, a pool of equity equal to 10% of the Company’s common stock outstanding at Emergence on a fully diluted and fully distributed basis (such reserve, the
“EIP Pool”), with 9.25% of the EIP Pool allocated for senior management employees (the “Management Pool”) and 0.75% of the EIP Pool (the “Board Pool”) allocated for members of the new Board of
Directors of the Company (the “New Board”). The precise amount of equity and number of shares to be reserved will be determined in a manner consistent with the intended effect of this Term Sheet.

 
 •    Emergence
Grants. Fifty-five percent (55%) of the Management Pool will be allocated at Emergence (the “Emergence Grants”) in accordance with this Term Sheet and the allocations set forth on Appendix A. Each Emergence Grant will be
50% in the form of restricted stock units (“RSUs”) and 50% in the form of five (5) year stock options (“Options”) priced at a per share value equating to $513.77 million equity value.

 
 •    Other
Awards. The forty-five percent (45%) remaining balance of the Management Pool (the “Other Awards”) will be granted to the Company’s senior management after Emergence in the form of equity-based awards as determined by the
New Board, after consultation with the Compensation Committee and taking into consideration the then prevailing practices of the Company’s publicly traded peer group.
  

•    Board Pool. The Board Pool will be issued as RSUs and/or Options allocated evenly
among the non-executive members of the New Board at Emergence, except that a non-executive Chairman may receive up to a double allocation with the approval of the Steering Committee.

 
 •    2018 Incentive
Cash Compensation. Management agrees to tie target 2018 incentive cash compensation to $236 million of EBITDA for 2018.

		
	Vesting:	  	 •    Normal Vesting. Subject to an Executive’s continued
employment through each applicable vesting date, the Emergence Grants will vest as follows:
  

•    50% of the RSUs will vest in ratable installments on 12/31/18, 12/31/19 and 12/31/20
based upon achieving the target EBITDA of $236 million, $246 million, and $270 million, respectively, with 50% of each installment vesting on such date based upon achieving between 90% and 100% of the target EBITDA for such year (with linear
interpolation between achieving 90% to 100% of the respective target EBITDA above)
  

•    50% of the RSUs and 100% of the Options will vest in ratable installments on the first
four (4) anniversaries of the Emergence Date on the following schedule: 30%/30%/20%/20%.

			
		  	 •    Accelerated Vesting Upon Termination Without Cause, for Good Reason
or Due to Death or Disability. If an Executive is terminated without Cause, terminates for Good Reason or is terminated due to death or disability (any such termination, a “Qualifying Termination”), the Executive will become
vested in an additional tranche of the Executive’s unvested Emergence Grant as if the Executive’s employment continued for one additional year following the Qualifying Termination date; provided that with respect to the Senior Executives
listed on Appendix A, (i) an amount equal to 50% of the unvested components of the Emergence Grant will accelerate and vest (75% if such termination occurs on or before the first anniversary of Emergence) and (ii) vested Options will remain
outstanding until the expiration date of the Option.
  

•    Accelerated Vesting Upon a Change in Control. If an Executive’ employment is
terminated by the Company without Cause or by the Executive for Good Reason, in either case, within 3 months prior to, or within twelve (12) months following, a Change in Control, 100% of the Executive’s unvested RSUs and Options will
accelerate and vest. For the sake of clarity, Options may be terminated in connection with a Change in Control upon payment of an amount equal to the intrinsic value thereof (as opposed to Black Scholes value).

		
	Final
Documentation:	  	The final documentation related to Emergence Grants shall not contain any material restrictions, limitations or additional obligations that are not set forth in this Term Sheet or in an Executive’s existing employment
agreement.

 Appendix A 

 

					
	 Position
	  	Emergence Grant:
% of Emergence Pool	 
	 President & CEO*
	  	 	30	% 
	 CFO*
	  	 	15	% 
	 Members of Key Leadership**
	  	 	25	% 
	 Other Leaders**
	  	 	20	% 
	 Other Employees**
	  	 	10	% 
		  	  
	  
	 
		  	 	100.00	% 
		  	  
	  
	 

  

	*	Senior Executive 

	**	Amounts within these bands to be allocated by the CEO in consultation with the New Board. To the extent not fully allocated, the CEO may allocate within other groups (for the avoidance of doubt, the CEO cannot allocate
additional equity to the CEO or the CFO). 

 EXHIBIT B TO THE RESTRUCTURING SUPPORT AGREEMENT 

Agreement to be Bound by RSA 

 Agreement to be Bound by RSA 

This Joinder Agreement to that certain Restructuring Support Agreement entered into as of
[                    ], 2017 by and among the Consenting Term Loan Lenders, the Consenting Equityholders, and the Company, attached hereto as
Exhibit 1 (as amended, modified, restated, or amended and restated from time to time in accordance with its terms, the “Restructuring Support Agreement”), is hereby executed and delivered by [●]
(the “Joining Party”) as of [●], 201[    ]. 
 Capitalized terms used herein but not otherwise
defined shall have the meaning set forth in the Restructuring Support Agreement. 
 Agreement to be Bound. The Joining Party
hereby agrees, on a several, but not joint, basis, to be bound by the Restructuring Support Agreement in accordance with its terms. The Joining Party shall hereafter be deemed to be a Consenting Term Loan Lender for any and all purposes under the
Restructuring Support Agreement. In the event of any inconsistency between this Joinder Agreement and the Restructuring Support Agreement, the Restructuring Support Agreement shall control in all respects. 

Representations and Warranties. The Joining Party hereby makes the representations and warranties of the Consenting Term Loan Lenders
set forth in Section 15 of the Restructuring Support Agreement to each other Party to the Restructuring Support Agreement. 

Governing Law. This Joinder Agreement shall be governed by and construed in accordance with the internal laws of the State of
New York. 
 Date executed: [                    ],
201[    ] 
  

			
	 [NAME OF TRANSFEREE]

 

 
			
	By:	 	  

	Name:	 	
	Title:Exhibit

Exhibit 4.1

PINNACLE WEST CAPITAL CORPORATION
TO
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
As Trustee under Pinnacle West Capital Corporation’s Indenture dated as of December 1, 2000 (For Senior Securities)
Third Supplemental Indenture
Dated as of November 30, 2017
2.25% Senior Notes due 2020

This THIRD SUPPLEMENTAL INDENTURE, dated as of November 30, 2017, is between Pinnacle West Capital Corporation, a corporation duly organized and existing under the laws of the State of Arizona (herein called the “Company”), having its principal office at 400 North Fifth Street, Phoenix, Arizona 85004, and The Bank of New York Mellon Trust Company, N.A., successor to The Bank of New York Mellon (formerly known as The Bank of New York), a national banking association, as Trustee (herein called the “Trustee”) under the Indenture (For Senior Securities) dated as of December 1, 2000 between the Company and the Trustee (the “Indenture”).
RECITALS OF THE COMPANY
The Company has executed and delivered the Indenture to the Trustee to provide for the issuance from time to time of its unsecured debentures, notes or other evidences of indebtedness (the “Securities”), said Securities to be issued in one or more series as provided in the Indenture.
Section 901(5) of the Indenture provides that, without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee may enter into one or more indentures supplemental to the Indenture for the purpose of adding to, changing or eliminating any of the provisions of the Indenture in respect of one or more series of Securities, provided that any such addition, change or elimination shall neither (i) apply to any Security of any series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor (ii) modify the rights of the Holder of any such Security with respect to such provision.
Section 901(7) of the Indenture provides that, without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee may enter into one or more indentures supplemental to the Indenture for the purpose of establishing the form or terms of Securities of any series.
Pursuant to the terms of the Indenture, the Company desires to provide for the establishment of a new series of its Securities to be known as its 2.25% Senior Notes due 2020 (herein called the “Notes”), the forms and substance of such Notes and the terms, provisions, and conditions thereof to be set forth as provided in the Indenture and this Third Supplemental Indenture.
All things necessary to make this Third Supplemental Indenture a valid agreement of the Company, and to make the Notes described herein, when executed by the Company and authenticated and delivered by the Trustee, the valid obligations of the Company, have been done.
NOW, THEREFORE, THIS THIRD SUPPLEMENTAL INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the Notes by the Holders thereof, and for the purpose of setting forth, as provided in the Indenture, the form and substance of each of the Notes and the terms, provisions, and conditions thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the Notes, as applicable, as follows:

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ARTICLE ONE
 
GENERAL TERMS AND CONDITIONS OF THE NOTES
SECTION 101.    Authentication and Delivery. There shall be and is hereby authorized a series of Securities designated the “2.25% Senior Notes due 2020” initially limited in aggregate principal amount to $300,000,000, which amount shall be as set forth in a Company Order for the authentication and delivery of Notes. The Notes shall mature and the principal shall be due and payable together with all accrued and unpaid interest thereon on November 30, 2020, and the Notes shall be issued in the form of registered Securities without coupons.
The foregoing principal amount of the Notes may be increased from time to time as permitted by Section 301 of the Indenture. All Notes need not be issued at the same time and such series may be reopened at any time, without notice to, or the consent of, the then existing Holders, for issuance of additional Notes. Any such additional Notes will be equal in rank and have the same respective maturity, payment terms, redemption features, and other terms as the Notes initially issued, except for the issue date, public offering price, payment of interest accruing prior to the issue date, and first payment of interest following the issue date of the additional Notes, but the Company will not issue such additional Notes unless the additional Notes are fungible with the previously issued Notes for U.S. federal income tax purposes or are issued with a separate CUSIP number.
SECTION 102.    Global Security. The Notes shall be issued in certificated form, except that the Notes shall be issued initially as a Global Security to and registered in the name of Cede & Co., as nominee of The Depository Trust Company, as Depositary therefor. Any Notes to be issued or transferred to, or to be held by, Cede & Co. (or any successor thereof) for such purpose shall bear the depositary legend in substantially the form set forth at the top of the form of Note in Section 401 hereof (in lieu of that set forth in Section 204 of the Indenture), unless otherwise agreed by the Company, such agreement to be confirmed in writing to the Trustee. Each such Global Security may be exchanged in whole or in part for Notes registered, and any transfer of such Global Security in whole or in part may be registered, in the name(s) of Persons other than such Depositary or a nominee thereof only under the circumstances set forth in clause (2) of the last paragraph of Section 305 of the Indenture, or such other circumstances in addition to or in lieu of those set forth in clause (2) of the last paragraph of Section 305 of the Indenture as to which the Company shall agree, such agreement to be confirmed in writing to the Trustee. Upon the occurrence of any such event, the Notes will be issued in such names as the Depositary shall instruct the Trustee.
SECTION 103.    Place of Payment and Place for Registration of Transfers and Exchange. Principal of, and premium, if any, and interest on, the Notes will be payable, the transfer of Notes will be registrable and the Notes will be exchangeable for Notes bearing identical terms and provisions, at the office or agency of the Company in the Village of East Syracuse, The State of New York; provided, however, that payment of interest may be made at the option of the Company by wire transfer to any Holder or by deposit to the account of the Holder of any such Notes if such account is maintained with the Trustee, in each case according to the written instructions given by such Holder on or prior to the applicable record date to the Trustee, which written instructions shall remain in effect until revised by such Holder by an instrument in writing delivered to the Trustee.

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SECTION 104.    Payment of Interest. The Notes will bear interest at the rate of 2.25% per annum from November 30, 2017 or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for until the principal thereof is paid or made available for payment, payable on May 30 and November 30 of each year (each, an “Interest Payment Date”), commencing on May 30, 2018, to the person in whose name such Note or any Predecessor Security is registered, at the close of business on May 15 and November 15, as the case may be, whether or not a Business Day, immediately preceding the Interest Payment Date. Any such interest installment not punctually paid or duly provided for shall forthwith cease to be payable to the Holders on such Regular Record Date, and may be paid to the Person in whose name such Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date to be fixed by the Trustee for the payment of such Defaulted Interest, notice whereof shall be given to the Holders of the Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully described in the Indenture.
The amount of interest payable for any period will be computed on the basis of a 360-day year of twelve 30-day months. Interest will accrue from November 30, 2017 or from the most recent Interest Payment Date to which interest has been paid or duly provided for to, but not including, the relevant payment date. In the event that any date on which interest is payable on the Notes is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of any such delay), in each case with the same force and effect as if made on such date. A “Business Day” shall mean any day except a Saturday, a Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close.
SECTION 105.    Redemption of the Notes. The Company may redeem all or any portion of the Notes, at its option, at any time or from time to time, upon notice as provided in the Indenture. The Redemption Price for any of the Notes to be redeemed on any Redemption Date will be equal to the greater of the following amounts:
(a)    100% of the principal amount of the Notes being redeemed on the Redemption Date; or
(b)    the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed on that Redemption Date (not including any portion of any payments of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis at the Adjusted Treasury Rate plus 10 basis points as determined by a Reference Treasury Dealer appointed by the Company for such purpose;
plus, in each case, accrued and unpaid interest thereon to the Redemption Date.
Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on Interest Payment Dates falling on or prior to a Redemption Date will be payable on the Interest Payment Date to the Holders as of the close of business on the relevant record date in accordance 

3

with the terms of such Notes and the Indenture. The Redemption Price will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
For purposes of this Section 105, the following terms shall have the following meanings:
“Adjusted Treasury Rate” means, with respect to any applicable Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.
“Comparable Treasury Issue” means the U.S. Treasury security selected by a Reference Treasury Dealer appointed by the Company for such purpose as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes.
“Comparable Treasury Price” means, with respect to any applicable Redemption Date, (A) if the Company obtains three or more Reference Treasury Dealer Quotations, the average of such Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, (B) if the Company obtains two such Reference Treasury Dealer Quotations, the average of such quotations, or (C) if only one Reference Treasury Dealer Quotation is received, such quotation.
“Primary Treasury Dealer” means a primary U.S. government securities dealer in the United States.
“Reference Treasury Dealer” means (A) each of (i) Barclays Capital Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC and (ii) a Primary Treasury Dealer selected by SunTrust Robinson Humphrey, Inc.; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected by the Company.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any applicable Redemption Date, the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third Business Day preceding such Redemption Date. The Company shall give the Trustee written notice of the Redemption Price, promptly after the calculation thereof.
The Trustee shall be under no duty to inquire into, may conclusively presume the correctness of, and shall be fully protected in acting upon, the Company’s calculation of any Redemption Price.
No Notes of $2,000 principal amount or less can be redeemed in part.

4

Notwithstanding Section 1104 of the Indenture, any notice of redemption given pursuant to said Section with respect to the foregoing redemption need not set forth the Redemption Price but only the manner of calculation thereof.
SECTION 106.    Defeasance of the Notes. The Notes shall be defeasible pursuant to Section 1302 or 1303 of the Indenture.
SECTION 107.    Minimum Denominations. The Notes shall be issuable in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.
ARTICLE TWO  

OTHER TERMS AND CONDITIONS OF THE NOTES
SECTION 201.    Notices, Etc., to Trustee and Company. Solely for purposes of the Notes, Section 105 of the Indenture shall be amended by adding the following paragraph at the end thereof:
The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic methods; provided, however, that (a) the party providing such written instructions or directions, subsequent to such transmission of written instructions or directions, shall provide the originally executed instructions or directions to the Trustee in a timely manner and (b) such originally executed instructions or directions shall be signed by an authorized representative of the party providing such instructions or directions. If such party elects to give the Trustee e-mail or facsimile instructions or directions (or instructions or directions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions or directions, the Trustee’s understanding of such instructions or directions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions or directions notwithstanding such instructions or directions conflict or are inconsistent with a subsequent written instruction or direction. The party providing electronic instructions or directions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including, without limitation, the risk of the Trustee acting on unauthorized instructions or directions and the risk of interception and misuse by third parties.
SECTION 202.    Waiver of Jury Trial, Submission to Jurisdiction and Tax Law Matters. Solely for purposes of the Notes, Article One of the Indenture shall be amended by adding the following Sections:

5

SECTION 114.    Waiver of Jury Trial.
Each of the Company, the Holders and the Trustee hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Indenture, the Notes or the transaction contemplated hereby.
SECTION 115.    Submission to Jurisdiction.
The Company hereby (a) irrevocably submits, to the fullest extent permitted by applicable law, to the jurisdiction of any New York State court sitting in the Borough of Manhattan in the City of New York or any federal court sitting in the Borough of Manhattan in the City of New York in respect of any suit, action or proceeding arising out of or relating to this Indenture and the Notes and (b) irrevocably accepts for itself and in respect of its property, generally and unconditionally, jurisdiction of the aforesaid courts.
SECTION 116.    Tax Law Matters.
In order to comply with applicable tax laws, rules and regulations (inclusive of directives, guidelines and interpretations promulgated by competent authorities) in effect from time to time (“Applicable Tax Law”), the Company agrees (a) to provide to the Trustee sufficient information about Holders or other applicable parties and/or transactions (including any modification to the terms of such transactions) so the Trustee can determine whether it has tax-related obligations under Applicable Tax Law, (b) that the Trustee shall be entitled to make any withholding or deduction from payments under this Indenture to the extent necessary to comply with Applicable Tax Law for which the Trustee shall not have any liability and (c) to hold harmless the Trustee for any losses the Trustee may suffer due to the actions it takes to comply with such Applicable Tax Law unless such actions taken by the Trustee were negligent or of its own willful misconduct. The terms of this Section 116 shall survive the termination of this Indenture.
SECTION 203.    Certain Rights of Trustee. Solely for purposes of the Notes, Section 603 of the Indenture shall be amended by deleting “and” at the end of clause (6) thereof, by replacing the period at the end of clause (7) thereof with “; and”, and by adding the following clause (8) thereto:
(8)    the Trustee shall not be deemed to have notice of any default or Event of Default unless written notice of any event that is in fact such a default is received by a Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee and such notice references the Notes and this Indenture. The Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture. The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Trustee unless it shall 

6

be proved that the Trustee was negligent in ascertaining the pertinent facts. The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder and each agent, custodian and other Person employed to act hereunder. Delivery of reports, information and documents to the Trustee is for informational purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates). In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, without limitation, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, or interruptions, losses or malfunctions of utilities, communications or computer (software and hardware) services, it being understood that the Trustee shall use reasonable efforts that are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.
SECTION 204.    Definitions. Solely for purposes of the Notes, Section 101 of the Indenture shall be amended by deleting the following definitions in their entirety and replacing such definitions with the following:
“Company Request” or “Company Order” means a written request or order signed in the name of the Company by any two of its Chief Executive Officer, its Chief Financial Officer, its General Counsel, its Treasurer, its Secretary, an Assistant Secretary of the Company or an Associate Secretary of the Company, and delivered to the Trustee.
“Officers’ Certificate” means a certificate signed by any two of the Company’s Chief Executive Officer, the Company’s Chief Financial Officer, the Company’s General Counsel, the Company’s Treasurer, the Company’s Secretary, an Assistant Secretary of the Company or an Associate Secretary of the Company, and delivered to the Trustee. One of the officers signing an Officers’ Certificate given pursuant to Section 1004 shall be the principal executive, financial or accounting officer of the Company.
SECTION 205.    Reports by the Company. Solely for purposes of the Notes, Section 704 of the Indenture shall be amended by adding the following sentence at the end thereof:
Information, documents and reports filed with the Commission via the Commission’s EDGAR system (or any successor system thereto) will be deemed to 

7

be filed with the Trustee and transmitted to Holders as of the time of such filing via EDGAR (or such successor system) for purposes of this Section 704.
SECTION 206.    Supplemental Indentures With Consent of Holders. Solely for purposes of the Notes, Section 902 of the Indenture shall be amended by replacing “not less than 66-2/3%” in the first sentence thereof with “a majority”.
SECTION 207.    Maintenance of Properties. Solely for purposes of the Notes, Section 1006 of the Indenture shall be deleted in its entirety.
SECTION 208.    Payment of Taxes and Other Claims. Solely for purposes of the Notes, Section 1007 of the Indenture shall be deleted in its entirety.
SECTION 209.    Election to Redeem; Notice to Trustee. Solely for purposes of the Notes, Section 1102 of the Indenture shall be amended by replacing “60 days” with “15 days”.
SECTION 210.    Notice of Redemption. Solely for purposes of the Notes, Section 1104 of the Indenture shall be amended by replacing “30” with “10”.
ARTICLE THREE 

LIMITATION ON LIENS

SECTION 301.    Limitation on Liens. So long as any of the Notes are Outstanding, the Company shall not, directly or indirectly (including through a Subsidiary), create, incur, assume or permit to exist any lien, pledge or security interest on any of the capital stock of Arizona Public Service Company, an Arizona corporation. For purposes of this Section 301, the reference to “corporation” in the definition of “Subsidiary” in Section 101 of the Indenture shall be amended to “corporation or any other entity”.
ARTICLE FOUR 
FORM OF NOTES

SECTION 401.    Form of Notes. The Notes and the Trustee’s certificate of authentication thereon shall be substantially in the following forms:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO PINNACLE WEST CAPITAL CORPORATION OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL 

8

INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
PINNACLE WEST CAPITAL CORPORATION
2.25% Senior Note due 2020
	
		
	No. 1
	$300,000,000

	 
	CUSIP No.  723484AG6

Pinnacle West Capital Corporation, a corporation duly organized and existing under the laws of the State of Arizona (the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of Three Hundred Million Dollars ($300,000,000) on November 30, 2020, and to pay interest thereon and on any overdue interest from November 30, 2017 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on May 30 and November 30 of each year, commencing May 30, 2018, at the rate of 2.25% per annum, until the principal hereof is paid or made available for payment. The amount of interest payable for any period will be computed on the basis of a 360-day year of twelve 30-day months.

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be May 15 or November 15, as the case may be, immediately preceding the Interest Payment Date (whether or not a Business Day). Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.
Payment of the principal of (and premium, if any) and any interest on this Security will be made at the office or agency of the Company maintained for that purpose through the corporate trust office of the Trustee, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company by wire transfer to any Holder or by deposit to the account of the Holder of any such Securities if such account is maintained with the Trustee, in each case according to the written instructions given by such Holder on or prior to the applicable record date to the Trustee, which written instructions shall remain in effect until revised by such Holder by an instrument in writing delivered to the Trustee.

9

Reference is hereby made to the further provisions of this Security set forth following the Company’s signature hereto, which further provisions shall for all purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by the Trustee referred to following the Company’s signature hereto by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.
	
		
	 
	PINNACLE WEST CAPITAL CORPORATION

	 
	 

	 
	By 

	 
	 

	Attest:
	 

	 
	 

	 
	 

	 
	 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture (For Senior Securities), dated as of December 1, 2000 (such instrument as originally executed and delivered and as supplemented or amended from time to time, the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., successor to The Bank of New York Mellon (formerly known as The Bank of New York), as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a description of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof.
The Company may redeem all or any portion of the Securities of this series, at its option, at any time or from time to time, at a Redemption Price equal to the greater of (a) 100% of the principal amount of the Securities of this series being redeemed on the Redemption Date or (b) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities of this series being redeemed on that Redemption Date (not including the portion of any payments of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis at the Adjusted Treasury Rate plus 10 basis points, as determined by a Reference Treasury Dealer appointed by the Company for such purpose; plus, in each case, accrued and unpaid interest thereon to the Redemption Date. Notwithstanding the foregoing, installments of interest on Securities of this series that are due and payable on Interest Payment Dates falling on or prior to a Redemption Date will be payable on the Interest Payment Date to the Holders as of the close of business on the relevant record date in accordance with the terms of the Securities of this series and 

10

the Indenture. The Redemption Price will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
If notice has been given as provided in the Indenture and funds for the redemption of any Securities of this series (or any portion thereof) called for redemption shall have been made available on the Redemption Date referred to in such notice, such Securities (or any portion thereof) will cease to bear interest on the date fixed for such redemption specified in such notice and the only right of the Holders of such Securities will be to receive payment of the Redemption Price.
Notice of any optional redemption of Securities of this series (or any portion thereof) will be given to Holders at their addresses, as shown in the Security Register for such Securities, not more than 60 nor less than 10 days prior to the date fixed for redemption. The notice of redemption will specify, among other items, (i) the Redemption Price or the manner of calculation of the Redemption Price and (ii) the principal amount of the Securities of this series held by such Holder to be redeemed if less than all of such Securities. If less than all of the Securities of this series are to be redeemed at the option of the Company, the Securities to be redeemed will be selected in accordance with the procedures of the Depositary.
As used herein:
“Adjusted Treasury Rate” means, with respect to any applicable Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.
“Comparable Treasury Issue” means the U.S. Treasury security selected by a Reference Treasury Dealer appointed by the Company for such purpose as having a maturity comparable to the remaining term of this Security to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Security.
“Comparable Treasury Price” means, with respect to any applicable Redemption Date, (A) if the Company obtains three or more Reference Treasury Dealer Quotations, the average of such Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, (B) if the Company obtains two such Reference Treasury Dealer Quotations, the average of such quotations, or (C) if only one Reference Treasury Dealer Quotation is received, such quotation.
“Primary Treasury Dealer” means a primary U.S. government securities dealer in the United States.
“Reference Treasury Dealer” means (A) each of (i) Barclays Capital Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC and (ii) a Primary Treasury Dealer selected by SunTrust Robinson Humphrey, Inc.; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected by the Company.

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“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any applicable Redemption Date, the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third Business Day preceding such Redemption Date.
The Securities of this series will not be subject to any sinking fund.
In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.
The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security and certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture.
The Indenture contains provisions restricting the Company’s ability to create, incur, assume or permit to exist any lien, pledge or security interest on any of the capital stock of Arizona Public Service Company, an Arizona corporation.
If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee without the consent of such Holders in certain circumstances, or with the consent of the Holders of not less than 66-2/3% in principal amount of the affected Securities at the time Outstanding; provided, however, that, for purposes of the Securities of this series, such 66-2/3% threshold has been replaced with a majority threshold. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the affected Securities at the time Outstanding, on behalf of the Holders of all such Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.
As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy under the Indenture, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable 

12

indemnity, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.
No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his or her attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount will be issued to the designated transferee or transferees.
The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the absolute owner hereof for all purposes, whether or not this Security be overdue, and none of the Company, the Trustee or any such agent shall be affected by notice to the contrary.
All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.
Form of Trustee’s Certificate of Authentication.
CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

13

	
		
	Dated:
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

	 
	As Trustee

	 
	 

	 
	By

	 
	Authorized Officer

	 
	 

	 
	 

	 
	 

SECTION 402.    General Provisions. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. The terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Third Supplemental Indenture, and the Company, by its execution and delivery of this Third Supplemental Indenture, expressly agrees to such terms and provisions and to be bound thereby. However, to the extent any provision of the Notes conflicts with the express provisions of this Third Supplemental Indenture or the Indenture, the provisions of this Third Supplemental Indenture or the Indenture, as applicable, shall govern and be controlling.
ARTICLE FIVE
 ORIGINAL ISSUE OF NOTES

SECTION 501.    Issuance of Notes. Subject to Section 101, Notes in the aggregate principal amount of $300,000,000 may, upon execution of this Third Supplemental Indenture, or from time to time thereafter, be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes, in accordance with a Company Order delivered to the Trustee by the Company, without any further action by the Company.
ARTICLE SIX
 
PAYING AGENT AND REGISTRAR

SECTION 601.    Appointment of Paying Agent and Registrar. The Bank of New York Mellon Trust Company, N.A. will be the Paying Agent and Security Registrar for the Notes.
ARTICLE SEVEN
 
SUNDRY PROVISIONS

SECTION 701.    Defined Terms. Except as otherwise expressly provided in this Third Supplemental Indenture or in the form of the Notes, or otherwise clearly required by the context hereof or thereof, all terms used herein or in said form of the Notes that are defined in the Indenture shall have the several meanings respectively assigned to them thereby.

14

SECTION 702.    Ratification of Indenture. The Indenture, as heretofore supplemented and amended, and as supplemented by this Third Supplemental Indenture, is in all respects ratified and confirmed, and this Third Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided.
SECTION 703.    About the Trustee. The Trustee hereby accepts the trusts herein declared, provided, created, supplemented or amended and agrees to perform the same upon the terms and conditions herein and in the Indenture, as heretofore supplemented and amended, set forth and upon the following terms and conditions:
The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Third Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made by the Company solely. Each and every term and condition contained in Article Six of the Indenture shall apply to and form a part of this Third Supplemental Indenture with the same force and effect as if the same were herein set forth in full with such omissions, variations and insertions, if any, as may be appropriate to make the same conform to the provisions of this Third Supplemental Indenture.
SECTION 704.    Counterparts. This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.
{REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK}

15

IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed as of the day and year first above written.
	
		
	 
	PINNACLE WEST CAPITAL CORPORATION

	 
	 

	 
	By:  /s/ Lee R. Nickloy 

	 
	Name:  Lee R. Nickloy

	 
	Title:  Vice President and Treasurer

	 
	 

	Attest:
	 

	 
	 

	/s/ Shirley A. Baum
	 

	Shirley A. Baum
	 

	Associate Secretary
	 

	
		
	 
	THE BANK OF NEW YORK MELLON TRUST

	 
	COMPANY, N.A., as Trustee

	 
	 

	 
	By: /s/ R. Tarnas

	 
	Name:  R. Tarnas

	 
	Title:  Vice President

{Signature Page to Third Supplemental Indenture}

	
		
	STATE OF ARIZONA      
	)

	 
	) ss.

	COUNTY OF MARICOPA    
	)

On the 30th day of November, 2017, before me personally came Lee R. Nickloy, to me known, who, being by me duly sworn, did depose and say that he/she is the Vice President and Treasurer of Pinnacle West Capital Corporation, one of the corporations described in and which executed the foregoing instrument and that he/she signed his/her name thereto by authority of the Board of Directors of said corporation.
	
	
	/s/ Barbard J. Dubishar

	Notary Public

	My Commission Expires:  December 12, 2018

	 

	 

	
		
	STATE OF ILLINOIS
	)

	 
	) ss.

	COUNTY OF COOK
	)

On the 29th day of November, 2017, before me personally came R. Tarnas, to me known or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and who, being by me duly sworn, did depose and say that he is a Vice President of The Bank of New York Mellon Trust Company, N.A., one of the corporations described in and which executed the foregoing instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by authority of the Board of Directors of said corporation; and that he signed his name thereto by like authority.

	
	
	 

	 

	/s/ Carrie M. Beecher

	Carrie M. Beecher

	Notary Public State of Illinois

	My Commission Expires 3/29/2021

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