Document:

Exhibit 10.1

Exhibit 10.1

EXECUTION VERSION

WESTWOOD ONE, INC.

THIRD AMENDMENT TO CREDIT AGREEMENT

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), is made and entered into as of
August 17, 2010, by and among Westwood One, Inc., a Delaware corporation (the “Company”), the
lenders under the Credit Agreement (defined below) (the “Lenders”) that are signatory hereto, and
Wells Fargo Capital Finance, LLC (formerly known as Wells Fargo Foothill, LLC), as administrative
agent for the Lenders (“Agent”). Capitalized terms used and not defined herein have the respective
meanings ascribed thereto in the Credit Agreement (defined below).

WITNESSETH:

WHEREAS, the Company, Agent and the Lenders are parties to that certain Credit Agreement,
dated as of April 23, 2009 (as amended from time to time prior to the date hereof, the “Existing
Credit Agreement” and as in effect after giving effect to this Amendment, the “Credit Agreement”);

WHEREAS, the Company is also party to that certain Securities Purchase Agreement, dated as of
April 23, 2009 (as amended from time to time the “Securities Purchase Agreement”), pursuant to
which the Company issued $117,500,000 of its 15% Senior Secured Notes due July 15, 2012 (the
“Notes”);

WHEREAS, the Company has requested that the Noteholders amend certain provisions of the
Securities Purchase Agreement as more particularly provided in that certain Third Amendment to
Securities Purchase Agreement (the “Third Notes Amendment”), dated as of August 17, 2010, by and
between the Company and the requisite noteholders; and

WHEREAS, the Company has requested that the Lenders amend certain provisions of the Existing
Credit Agreement as more particularly provided herein; and

WHEREAS, subject to the satisfaction of the conditions set forth in Section 2 hereof, the
Lenders are willing to agree to amend such provisions of the Existing Credit Agreement on the terms
set forth herein;

 

 

 

NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of all of
which are hereby acknowledged, the Company and the Lenders party hereto agree as follows:

1. Amendments to Existing Credit Agreement. The Existing Credit Agreement is hereby
amended as follows (the “Credit Agreement Amendment”):

(a) Article 5 of the Existing Credit Agreement is hereby amended by inserting a new Section
5.11 at the end thereof to read as follows:

5.11 Sale of DG FastChannel Stock.

The Borrower will use commercially reasonable efforts to sell, in one or more
transactions and at prices and terms deemed advisable by the Borrower, all of the shares of
capital stock of DG FastChannel, Inc. held by it as promptly as practicable after the Third
Amendment Effective Date and, in any event, not later than November 30, 2010, subject to
the terms of Section 6.8(f) hereof.

(b) Section 6.1 of the Existing Credit Agreement is hereby amended by deleting the word “and”
from the end of clause (vi) thereof, inserting the word “and” at the end of clause (vii) thereof,
and inserting a new clause (viii) to read as follows:

(viii) the issuance and sale by the Borrower to Gores Radio Holdings and its
Affiliates of up to an aggregate of $15,000,000 of common stock of the Borrower in
accordance with the terms and provisions of the 2010 Purchase Agreement.

(c) Section 6.5 of the Existing Credit Agreement is hereby amended by deleting the word “and”
immediately following clause (e) thereof, by deleting the period at the end of clause (f) thereof
and inserting “; and” in lieu thereof and inserting a new clause (g) to read as follows:

(g) any acquisition of assets of, or Equity Interests in, any Person (other than an
Affiliate of the Borrower or any of the Gores Parties) during the period from August 17,
2010 through and including July 15, 2012 solely in exchange for the issuance of Qualified
Equity Interests of the Borrower, so long as the fair market value of all such acquired
assets and Equity Interests (determined as of the date of the acquisition thereof) does
not, in the aggregate, exceed (i) $20,000,000 during the period commencing on August 17,
2010 through and including August 16, 2011, and (ii) $20,000,000 during the period
commencing on August 17, 2011 through and including July 15, 2012.

(d) Section 6.8 of the Credit Agreement is hereby amended by deleting the word “and”
immediately following clause (d) thereof, by deleting the period at the end of clause (e) thereof
and inserting “; and” in lieu thereof and inserting a new clause (f) to read as follows:

(f) the sale of the shares of capital stock of DG FastChannel, Inc. held by the
Borrower in accordance with Section 5.11 hereof; provided that upon the sale of such shares
of capital stock the Borrower shall exercise its option under Section 7.3 of the New Senior
Note Agreement to prepay the New Senior Notes
in an aggregate principal amount equal to the Net Cash Proceeds (as defined in the New
Senior Note Agreement) from the sale of such shares.

 

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(e) Article 6 of the Existing Credit Agreement is hereby amended by inserting a new Section
6.14 at the end thereof to read as follows:

6.14. Amendment of 2010 Purchase Agreement.

The Borrower will not, without the consent of Required Lenders, amend, modify, change
or waive, or consent or agree to any amendment, modification, change or waiver to, the
dates by which the purchase and sale of the shares under the 2010 Purchase Agreement must
be made, the price per share of such shares, the aggregate purchase price for such shares
or any other terms of the 2010 Purchase Agreement in a manner that is adverse to any Lender
(in its capacity as a Lender).

(f) Section 7.1 of the Existing Credit Agreement is hereby amended by amending and restating
the table set forth therein in its entirety as follows:

	 	 	 	 	 
	“Date	 	Ratio	 
	March 31, 2010
	 	 	9.20 to 1.0	 
	June 30, 2010
	 	 	8.65 to 1.0	 
	September 30, 2010
	 	 	12.95 to 1.0	 
	December 31, 2010
	 	 	12.95 to 1.0	 
	March 31, 2011
	 	 	12.95 to 1.0	 
	June 30, 2011
	 	 	12.65 to 1.0	 
	September 30, 2011
	 	 	11.50 to 1.0	 
	December 31, 2011
	 	 	10.35 to 1.0	 
	March 31, 2012
	 	 	9.20 to 1.0	 
	June 30, 2012
and the last day of each fiscal quarter thereafter
	 	 	8.65 to 1.0”	 

(g) Article 8 of the Existing Credit Agreement is hereby amended by deleting the “or” at the
end of clause (l) thereof, deleting the period at the end of clause (m) thereof and inserting “;
or” in lieu thereof and inserting a new clause (n) to read as follows:

(n) the 2010 Stock Purchase (as defined in the Third Amendment) is not consummated on
or prior to September 7, 2010 or the 2011 Stock Purchase (as defined in the Third
Amendment) is not consummated on or prior to February 28, 2011, in each case, in accordance
with the terms and provisions of the 2010 Purchase Agreement; provided that the Borrower
and Gores Radio Holdings shall have no obligation to consummate the 2011 Stock Purchase in
the event that on or prior to February 28, 2011 the Borrower and its Subsidiaries shall
have received Net Cash Proceeds (as defined in the New Senior Note Agreement) of at least
$10,000,000 from the issuance and sale of Qualified Equity Interests of the Borrower to any
Person (other than any Subsidiary), other than in connection with (i) the 2010 Stock
Purchase, and (ii) any stock or option grant to an employee of
the Borrower or any Subsidiary under a stock option plan or other similar incentive or
compensation plan of the Borrower or its Subsidiaries or upon the exercise thereof.

 

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(h) Schedule 1.1 to the Existing Credit Agreement is hereby amended by adding the following
new definitions in their appropriate alphabetical order:

“2010 Purchase Agreement” means that certain Purchase Agreement, dated as of
August 17, 2010, by and between the Borrower and Gores Radio Holdings.

“Disqualified Equity Interests” means any Equity Interests of the Borrower
that (a) require the payment of any dividends, (b) mature or are mandatorily redeemable or
subject to mandatory repurchase or redemption or repurchase at the option of the holders
thereof, in each case in whole or in part and whether upon the occurrence of any event,
pursuant to a sinking fund obligation on a fixed date or otherwise (including as the result
of a failure to maintain or achieve any financial performance standards) in each case,
prior to the one year anniversary of Maturity Date, or (c) are convertible or exchangeable,
automatically or at the option of any holder thereof, into any Indebtedness, Equity
Interests or other assets other than Qualified Equity Interests.

“Qualified Equity Interests” means any Equity Interests of the Borrower that
do not constitute Disqualified Equity Interests.

“Third Amendment” means that certain Third Amendment to Credit Agreement,
dated as of August 17, 2010, by and among the Borrower and the Lenders party thereto.

“Third Amendment Effective Date” means the “Effective Date” as defined in the
Third Amendment.

(i) The definition of “Initial Sponsor Letter of Credit” set forth in Schedule 1.1 to the
Existing Credit Agreement is hereby amended and restated in its entirety as follows:

“Initial Sponsor Letter of Credit” means that certain Irrevocable Standby
Letter of Credit in the amount of $15,000,000 issued as of the Closing Date by Union Bank
of California, N.A. in favor of Agent, as beneficiary, on behalf of the Sponsor Guarantors,
as applicants, as amended by that certain Amendment No. 2 thereto issued as of the Third
Amendment Effective Date by Union Bank of California, N.A. to increase the amount of such
Irrevocable Standby Letter of Credit to $17,500,000.

 

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(j) The definition of “Loan Documents” set forth in Schedule 1.1 to the Existing Credit
Agreement is hereby amended and restated in its entirety as follows:

“Loan Documents” means the Agreement, any Compliance Certificate, the Fee
Letter, the Guaranty, the Letters of Credit, the Sponsor Guaranty and Put Agreement, the
Sponsor Letter of Credit, the Gores Limited Guaranty Subordination Agreement (if any), the
2010 Purchase Agreement, any note or notes executed by Borrower in connection with the
Agreement and payable to a member of the Lender Group, and any other agreement entered
into, now or in the future, by Borrower or any of its Subsidiaries or any Sponsor Guarantor
and the Lender Group in connection with the Agreement.

(k) The definition of “Maximum Revolver Amount” set forth in Schedule 1.1 to the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

“Maximum Revolver Amount” means $20,000,000, decreased by the amount of
reductions in the Revolver Commitments made in accordance with Section 2.4(c) of the
Agreement.

(l) The definition of “Sponsor UBOC Documents” set forth in Schedule 1.1 to the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

“Sponsor UBOC Documents” means that certain Amended and Restated Revolving
Credit Agreement dated as of February 16, 2010 among Gores Capital Partners II, L.P., Gores
Co-Invest Partnership II, L.P., Gores Capital Partners III, L.P., Gores Co-Invest
Partnership III, L.P., as amended, restated, supplemented or otherwise modified from time
to time.

(m) Schedule C-1 to the Credit Agreement is hereby amended and restated in its entirety as set
forth on Schedule C-1 to this Amendment.

2. Conditions to Effectiveness of this Amendment. Notwithstanding any other provision
of this Amendment and without affecting in any manner the rights of the Lenders hereunder, it is
understood and agreed that this Amendment shall not become effective, and the Company shall have no
rights hereunder, until satisfaction of the condition set forth in the penultimate sentence of this
Section 2 and until each of the following conditions have been satisfied:

(a) Agent shall have received a copy of this Amendment executed by the Loan Parties, the
Sponsor Guarantors and the Required Lenders;

(b) Agent shall have received a copy of the fully executed Third Notes Amendment in form and
substance reasonably satisfactory to Agent and Required Lenders (a true, correct and complete copy
of which is attached hereto as Exhibit A), which, among other things, provides the New Senior
Noteholders’ consent to the Third Amendment, including the increase in the Maximum Revolver Amount
from
$15,000,000 to $20,000,000, and provides that Agent and Lenders are intended third party
beneficiaries to such consent;

 

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(c) Agent shall have received a copy of the fully executed Amendment No. 1 to Guaranty (With
Put Option) in the form attached as Exhibit B hereto (the “Sponsor Guaranty Amendment”);

(d) Agent shall have received a fully executed copy of that certain Purchase Agreement, dated
as of the date hereof (the “2010 Purchase Agreement”), by and between Gores Radio Holdings and the
Company in form and substance satisfactory to the Required Lenders (a true, correct and complete
copy of which is attached hereto as Exhibit C), which provides, among other things for (i) the
purchase by Gores Radio Holdings, in cash, of not less than $5,000,000 of new shares of common
stock of the Company on or prior to September 7, 2010 at a purchase price equal to at least $6.50
per share and otherwise on terms and conditions reasonably satisfactory to the Required Lenders
(the “2010 Stock Purchase”); and (ii) subject to the terms of Section 2.1 of the 2010 Purchase
Agreement (as in effect on the date hereof), the purchase by Gores Radio Holdings, in cash, of not
less than $10,000,000 of new shares of common stock of the Company on or prior to February 28, 2011
(or such earlier date as may be necessary to remedy any liquidity shortfall of the Company on the
terms and conditions set forth in the 2010 Purchase Agreement) at a purchase price per share equal
to the Fair Market Value (as defined below) thereof and otherwise on terms and conditions
reasonably satisfactory to the Required Lenders (the “2011 Stock Purchase”)

(e) Agent shall have received the Third Amendment Fee (as defined below) for the benefit of
the Lenders party to the Credit Agreement as of the date hereof;

(f) Agent shall have received a copy of an amendment no. 2 to Irrevocable Standby Letter of
Credit in the amount of $15,000,000 issued as of the Closing Date by Union Bank of California, N.A.
in favor of Agent, as beneficiary, on behalf of the Sponsor Guarantors, as applicants increasing
the amount of such Irrevocable Standby Letter of Credit from $15,000,000 to $17,500,000 in the form
attached as Exhibit D hereto issued as of the Third Amendment Effective Date by Union Bank, N.A. in
favor of Agent, as beneficiary, together with evidence satisfactory to Agent that the original of
such Irrevocable Standby Letter of Credit has been sent to Agent for delivery no later than one
calendar day following the date of this Amendment.

(g) Agent shall have received a fully executed opinion of Sponsor Guarantors’ counsel in form
and substance satisfactory to Agent with respect to this Amendment and the Sponsor Guaranty
Amendment;

(h) Agent shall have received a fully executed certificate from the Secretary of each Sponsor
Guarantor in form and substance satisfactory to Agent (i) attesting to the resolutions of such
Sponsor Guarantor’s general partner authorizing its execution, delivery, and performance of this
Amendment and the Sponsor Guaranty Amendment, (ii) authorizing specific officers of such Sponsor
Guarantor to execute the same and (iii)
attesting to the incumbency and signatures of such specific officers of the general partner of
such Sponsor Guarantor; and

 

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(i) the representations and warranties set forth in Section 3 of this Amendment shall be true
and correct as of the date hereof.

In addition, all corporate and other proceedings in connection with the transactions contemplated
by this Amendment and all documents and instruments incident to such transactions shall be
reasonably satisfactory to the Required Lenders (such satisfaction to be established by the
execution and delivery of this Amendment by the Required Lenders). The date on which all such
conditions to the effectiveness of this Amendment have been met is referred to herein as the
“Effective Date”.

For purposes of clause (d) above, the “Fair Market Value” per share of common stock of the Company
on a given date shall mean (x) if the shares of common stock of the Company are publicly traded in
the over-the-counter market, then the average of the per share volume-weighted average price for
the Company’s Primary Exchange as displayed under the heading “VWAP” on the Bloomberg Financial
Markets Information Service (or, if Bloomberg ceases to publish such price, any successor service
reasonably chosen by the Company) page “WWON<Equity><VWAP>” (or the equivalent
successor if such page is not available), in respect of the period from the open of trading on the
relevant trading day until the close of trading on such trading day, for the thirty (30)
consecutive trading days ended on the trading day immediately preceding such date, or (y) if no
such quotations are available, the fair value of such shares as of such date as determined by
mutual agreement of the Board of Directors of the Company and the Agent, or, if they shall fail to
agree within 10 Business Days (or a further period on written agreement of all such parties), by an
independent internationally-recognized investment banking firm selected by the Board of Directors
with the consent of the Agent (the fees and expenses of which shall be paid by the Company).
Notwithstanding the foregoing, if the Fair Market Value of the shares of common stock of the
Company determined in accordance with clause (x) or (y) of the preceding sentence, as applicable,
is less than $4.00 per share, the Fair Market Value of each share of Common Stock shall be deemed
to be $4.00 per share for purposes of the 2011 Stock Purchase, and if the Fair Market Value of the
shares of common stock of the Company determined in accordance with clause (x) or (y) of the
preceding sentence, as applicable, is greater than $9.00 per share, the Fair Market Value of each
share of Common Stock shall be deemed to be $9.00 per share for purposes of the 2011 Stock
Purchase. For purposes hereof, the “Primary Exchange” means the “Primary Exchange” identified on
page 2 on the Bloomberg Financial Markets Information Service (or, if Bloomberg ceases to publish
such price, any successor service reasonably chosen by the Company) page “WWON<Equity> DES”
(or the equivalent successor if such page is not available).

 

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3. Representations and Warranties. To induce the Lenders to enter into this
Amendment, the Company hereby represents and warrants to the Agent and Lenders that:

(a) The execution and delivery by the Company and each other Loan Party of this Amendment, and
the performance by the Company and each other Loan Party of the Credit Agreement, this Amendment
and the Third Notes Amendment (i) are within the Company’s and each such other Loan Party’s power
and authority; (ii) have been duly authorized by all necessary corporate action; (iii) are not in
contravention of any provision of the Company’s or any other Loan Party’s certificate of
incorporation or bylaws or other organizational documents; (iv) do not violate any law or
regulation, or any order or decree of any Governmental Authority applicable to the Company, any
other Loan Party or any Subsidiary; (v) except as set forth on Schedule 3(e) hereto with
respect to the Securities Purchase Agreement, do not conflict with or result in the breach or
termination of, constitute a default under or accelerate any performance required by, any
indenture, mortgage, deed of trust, lease, agreement or other instrument to which the Company, any
other Loan Party or any of their respective Subsidiaries is a party or by which the Company, any
other Loan Party or any such Subsidiary or any of their respective property is bound; (vi) do not
result in the creation or imposition of any Lien upon any of the property of the Company or any of
its Subsidiaries, except pursuant to the Security Documents (as such term is defined in the
Securities Purchase Agreement); and (vii) except as set forth on Schedule 3(e) hereto with
respect to the Securities Purchase Agreement and except for such consents or approvals as have
already been obtained, do not require the consent or approval of any Governmental Authority or any
other Person.

(b) This Amendment has been duly executed and delivered by the Company and this Amendment
constitutes, a legal, valid and binding obligation of the Company and each other Loan Party,
enforceable against the Company and each other Loan Party in accordance with its terms except as
the enforceability hereof may be limited by bankruptcy, insolvency, reorganization, moratorium and
other laws affecting creditors’ rights and remedies in general or by general principles of equity.

(c) A true, complete and correct copy of each of the Third Notes Amendment is attached hereto
as Exhibit A and the Effective Date (as defined therein) has occurred.

(d) No Default or Event of Default has occurred and is continuing as of the date hereof and as
of the Effective Date.

(e) Except as set forth on Schedule 3(e) hereto, the representations and warranties of
the Company and each other Loan Party contained in the Credit Agreement and each of the other Loan
Documents are true and correct as of the date hereof as if made on the date hereof (other than
those which, by their terms, specifically are made as of certain dates prior to the date hereof,
which are true and correct as of such dates).

(f) Other than (i) payment of the reasonable fees, charges and disbursements of Conway, Del
Genio, Gries & Co., LLC and counsel to the Noteholders, in each case incurred in connection with
the Third Notes Amendment, and (ii) the requirement that the Notes be prepaid with the Net Cash
Proceeds (as defined in the Securities Purchase Agreement) of the sale of the Borrower’s shares of
the capital stock of DG FastChannel, Inc., no consideration has been paid or is payable by the
Company to any other Person, in
its capacity as lender, noteholder and/or guarantor, as an inducement to the Company’s or such
Person’s execution and delivery of the Third Notes Amendment.

 

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4. Third Amendment Fee. In consideration of the agreements of Agent and Lenders set
forth herein, the Borrower hereby agrees to pay on the date hereof an amendment fee in the amount
of $75,000 to Agent for the ratable benefit of the Lenders party to the Credit Agreement as of the
date hereof (the “Third Amendment Fee”), which Third Amendment Fee shall be fully-earned, due and
payable and non-refundable on the date hereof.

5. Effect of Amendment. Except as set forth expressly herein, all terms of the
Existing Credit Agreement, as amended hereby, each other Loan Document and any document entered
into in connection therewith, shall be and remain in full force and effect. The execution,
delivery and effectiveness of this Amendment shall not, except as expressly provided herein,
operate as a waiver of any right, power or remedy of the Agent or the Lenders under the Existing
Credit Agreement, any other Loan Document or any other documents entered into in connection
therewith, nor constitute a waiver of any provision of the Existing Credit Agreement, any other
Loan Document or any other documents entered into in connection therewith. Any and all notices,
requests, certificates and other instruments executed and delivered after the execution and
delivery of this Amendment may refer to the Existing Credit Agreement without making specific
reference to this Amendment, but nevertheless all such references shall include this Amendment
unless the context otherwise requires. It is understood that, to the extent the consent of Agent
and Lenders is required by the Subordination Agreement or the Credit Agreement for the prepayment
of the Notes or the execution, delivery and performance of the Third Notes Amendment, Agent and
Lenders hereby consent to the prepayment of the Notes pursuant to Section 9.9(f) of the Securities
Purchase Agreement (as in effect on August 17, 2010 after giving effect to the Third Notes
Amendment) and the execution, delivery and performance of the Third Notes Amendment (as in effect
on August 17, 2010).

6. Confirmation of the Subsidiary Guaranty and the Sponsor Guaranty and Put Agreement.

(a) By executing this Amendment each of the Subsidiary Guarantors acknowledges and confirms
that (a) the Guaranty continues in full force and effect notwithstanding this Amendment and (b) the
indebtedness, liabilities and obligations of the Company under the Credit Agreement, each other
Loan Document and this Amendment constitute indebtedness, liabilities and obligations guaranteed
under the Guaranty. Nothing in this Amendment extinguishes, novates or releases any right, claim,
or entitlement of any of the Lenders created by or contained in the Loan Documents nor is the
Company nor any other Loan Party released from any covenant, warranty or obligation created by or
contained herein or therein, except as such covenants and obligations are specifically amended by
this Amendment.

 

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(b) By executing this Amendment each of the Sponsor Guarantors acknowledges and confirms that
(a) the Sponsor Guaranty and Put Agreement (as
amended by the Sponsor Guaranty Amendment) continues in full force and effect notwithstanding
this Amendment and (b) the indebtedness, liabilities and obligations of the Company and the other
Loan Parties under the Credit Agreement, each other Loan Document and this Amendment constitute (i)
indebtedness, liabilities and obligations guaranteed under the Sponsor Guaranty and Put Agreement
(as amended by the Sponsor Guaranty Amendment) and (ii) Guarantied Obligations (as defined in the
Sponsor Guaranty and Put Agreement (as amended by the Sponsor Guaranty Amendment)). Nothing in
this Amendment extinguishes, novates or releases any right, claim, or entitlement of Agent and/or
any of the Lenders created by or contained in the Loan Documents nor is the Company nor any other
Loan Party nor any Sponsor Guarantor released from any covenant, warranty or obligation created by
or contained herein or therein, except as such covenants and obligations are specifically amended
by this Amendment. In order to induce Agent and Lenders to enter into this Amendment, each Sponsor
Guarantor hereby warrants to Agent and Lenders, as of the date hereof and after giving pro forma
effect to the investments contemplated by the 2010 Purchase Agreement, that the representations and
warranties of each Sponsor Guarantor contained in the Sponsor Guaranty and Put Agreement
(including, without limitation, the representations and warranties set forth in Section 6(a)(x) and
6(a)(xiii) thereof), as amended by the Sponsor Guaranty Amendment, are true and correct as of the
date hereof as if made on the date hereof (other than those which, by their terms, specifically are
made as of certain dates prior to the date hereof, which are true and correct as of such dates),
and that no Sponsor Event of Default (as defined in the Sponsor Guaranty and Put Agreement) has
occurred as of the date hereof.

7. Release.

(a) In consideration of the agreements of Agent and Lenders contained herein and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each
of Company, each Subsidiary Guarantor and each Sponsor Guarantor, on behalf of itself and its
successors, assigns, and other legal representatives, hereby absolutely, unconditionally and
irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and
assigns, and their present and former shareholders, affiliates, subsidiaries, divisions,
predecessors, directors, officers, attorneys, financial advisors, employees, agents and other
representatives (Agent, each Lender and all such other Persons being hereinafter referred to
collectively as the “Releasees” and individually as a “Releasee”), of and from all
demands, actions, causes of action, suits, covenants, contracts, controversies, agreements,
promises, sums of money, accounts, bills, reckonings, damages and any and all other claims,
counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a
“Claim” and collectively, “Claims”) of every name and nature, either known or
suspected, both at law and in equity, which Company, any Subsidiary Guarantor, any Sponsor
Guarantor or any of their successors, assigns, or other legal representatives may now or hereafter
own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of
any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day
and date of this Amendment, including, without limitation, for or on account of, or in relation to,
or in any way in connection with any of the Credit
Agreement, or any of the other Loan Documents or any other documents entered into in
connection therewith or transactions thereunder or related thereto.

 

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(b) Company, each Subsidiary Guarantor and each Sponsor Guarantor warrant, represent and agree
that they are fully aware of California Civil Code Section 1542, which provides as follows:

SEC. 1542. GENERAL RELEASE. A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.

Company, each Subsidiary Guarantor and each Sponsor Guarantor hereby expressly waive the provisions
of California Civil Code Section 1542, and any rights they may have to invoke the provisions of
that statute now or in the future with respect to the Claims being released pursuant to this
Section 7. In connection with the foregoing waiver and relinquishment, Company, each
Subsidiary Guarantor and each Sponsor Guarantor acknowledge that they are aware that they or their
attorneys or others may hereafter discover claims or facts in addition to or different from those
which the parties now know or believe to exist with respect to the subject matter of the Claims
being released hereunder, but that it is nevertheless the intention of the Company, each Subsidiary
Guarantor and each Sponsor Guarantor to fully, finally and forever settle, release, waive and
discharge all of the Claims which are being released pursuant to this Section 7. The
release given herein shall remain in effect as a full and complete general release, notwithstanding
the discovery or existence of any such additional or different claims or facts.

(c) Each of Company, each Subsidiary Guarantor and each Sponsor Guarantor understands,
acknowledges and agrees that the release set forth above may be pleaded as a full and complete
defense and may be used as a basis for an injunction against any action, suit or other proceeding
which may be instituted, prosecuted or attempted in breach of the provisions of such release.

8. Governing Law. This Amendment shall be governed by, and construed in accordance
with, the internal laws of the State of California excluding choice-of-law principles of the law of
such State that would require the application of the laws of a jurisdiction other than such State.

9. No Novation. This Amendment is not intended by the parties to be, and shall not be
construed to be, a novation of the Existing Credit Agreement or an accord and satisfaction in
regard thereto.

10. Fees and Expenses. Whether or not this Amendment becomes effective, the Company
will, in accordance with Section 17.10 of the Existing Credit Agreement, promptly (and in
any event within 30 days of receiving any statement or invoice therefor) pay all Lender Group
Expenses relating to this Amendment, including, without
limitation, the reasonable attorneys fees and expenses of the counsel of the Agent, Goldberg
Kohn Ltd.

 

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11. Counterparts. This Amendment may be executed by one or more of the parties hereto
in any number of separate counterparts, each of which shall be deemed an original and all of which,
taken together, shall be deemed to constitute one and the same instrument. Delivery of an executed
counterpart of this Amendment by facsimile transmission or by electronic mail in pdf form shall be
as effective as delivery of a manually executed counterpart hereof.

12. Binding Nature. This Amendment shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns.

13. Entire Understanding. This Amendment and the other Loan Documents set forth the
entire understanding of the parties with respect to the matters set forth herein and therein, and
shall supersede any prior negotiations or agreements, whether written or oral, with respect
thereto.

14. Headings. The headings of the sections of this Amendment are inserted for
convenience only and shall not be deemed to constitute a part of this Amendment.

[Signature Pages To Follow]

 

-12-

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	COMPANY:

	 	 
	 	 	WESTWOOD ONE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Roderick M. Sherwood, III	 	 
	 

	 	 	 	 

Name: Roderick M. Sherwood, III
	 	 
	 

	 	 	 	Title:   President and CFO	 	 
	 
	 	 	 	 	 	 
	 	 	GUARANTORS:

	 	 
	 	 	METRO NETWORKS COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	METRO NETWORKS COMMUNICATIONS, LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	METRO NETWORKS COMMUNICATIONS, INC.,	 	 
	 

	 	 	 	as General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	METRO NETWORKS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	METRO NETWORKS SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	SMARTROUTE SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	WESTWOOD NATIONAL RADIO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 	 	WESTWOOD ONE PROPERTIES, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	WESTWOOD ONE RADIO, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	WESTWOOD ONE RADIO NETWORKS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	WESTWOOD ONE STATIONS — NYC, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	TLAC, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Roderick M. Sherwood, III	 	 
	 

	 	 	 	 

Name: Roderick M. Sherwood, III
	 	 
	 

	 	 	 	Title:   Authorized Signatory	 	 

Signature Page to Third Amendment to Credit Agreement

 

 

 

The foregoing is hereby agreed to as of the date thereof.

	 	 	 	 	 
	 	AGENT AND LENDER:

WELLS FARGO CAPITAL FINANCE, LLC

 	 
	 	By:  	/s/ Daniel Whitwer 	 
	 	 	Name:  	Daniel Whitwer 	 
	 	 	Title:  	SVP 	 

Signature Page to Third Amendment to Credit Agreement

 

 

 

The foregoing is hereby agreed to as of the date thereof.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	SPONSOR GUARANTORS
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	GORES CAPITAL PARTNERS II, L.P.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	GORES CAPITAL ADVISORS II, LLC,
	 	 	 	 	 	 	Its General Partner
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	THE GORES GROUP, LLC,
	 	 	 	 	 	 	 	 	Its Manager
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By	 	/s/ Steven G. Eisner
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name: Steven G. Eisner
	 

	 	 	 	 	 	 	 	 	 	Its:      Vice President
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	GORES CO-INVEST PARTNERSHIP II, L.P.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	GORES CAPITAL ADVISORS II, LLC,
	 	 	 	 	 	 	Its General Partner
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	THE GORES GROUP, LLC,
	 	 	 	 	 	 	 	 	Its Manager
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By	 	/s/ Steven G. Eisner
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name: Steven G. Eisner
	 

	 	 	 	 	 	 	 	 	 	Its:      Vice President

Signature Page to Third Amendment to Credit Agreement

 

 

 

Exhibit A

Third Notes Amendment

See Exhibit 4.1

 

 

 

Exhibit B

Amendment No. 1 to Guaranty (With Put Option) 

(Intentionally omitted)

 

 

 

Exhibit C

2010 Purchase Agreement

See Exhibit 10.2

 

 

 

Exhibit D

Irrevocable Standby Letter of Credit

(Intentionally omitted)

 

 

 

Schedule 3(e)

Exceptions to No Conflict Representation and Warranty

Pursuant to Section 4 of the Second Notes Amendment (as defined in the Securities Purchase
Agreement), the Company agreed to prepay the Notes on the dates and in the amounts set forth in
Section 4 thereof. To the extent any prepayment of the Notes did not equal or exceed the “5%
Minimum Requirement” (as defined in the Second Notes Amendment), such prepayment, in the absence of
a waiver by each holder of the Notes regarding such optional prepayment on or prior to the date of
prepayment, could be deemed a conflict under the terms of the Securities Purchase Agreement solely
as a result of the failure of the Company to comply with the 5% Minimum Requirement in connection
with such prepayment. The Company’s representations and warranties are qualified in their entirety
by reference to such conflict described herein and in Section 4(c) of the Second Notes Amendment
and by any other breach of, or conflict with, the 5% Minimum Requirement.

In addition, pursuant to Section 9.9(f) of the Securities Purchase Agreement, the Company has
agreed to prepay the Notes with the Net Cash Proceeds (as defined in the Securities Purchase
Agreement) from the sale of the shares of capital stock of DG FastChannel, Inc. held by the Company
in accordance with Section 8.9 of the Securities Purchase Agreement. To the extent any such
prepayment does not equal or exceed the 5% Minimum Requirement (as defined in the Third Notes
Amendment), such prepayment, in the absence of a waiver by each Noteholder regarding such optional
prepayment on or prior to the date of prepayment, could be deemed a conflict under the terms of the
Securities Purchase Agreement solely as a result of the failure of the Company to comply with the
5% Minimum Requirement in connection with such prepayment. The Company’s representations and
warranties are qualified in their entirety by reference to such conflict described in Section 4 of
the Amendment. To the knowledge of the Company, the failure of the Company to comply with the 5%
Minimum Requirement in connection with the prepayment of the Notes contemplated by Section 9.9(f)
of the Securities Purchase Agreement would not result in the breach of any representation or
warranty contained in Section 4 of the Securities Purchase Agreement, except with respect to
Section 4.6(a)(i) thereof to the extent that a prepayment made pursuant to Section 9.9(f) of the
Securities Purchase Agreement is deemed to constitute a conflict with the 5% Minimum Requirement
set forth in the Securities Purchase Agreement.

 

 

 

Schedule C-1

Commitments

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolver	 	 	Term Loan	 	 	 	 
	Lender	 	Commitment	 	 	Commitment	 	 	Total Commitment	 
	Wells Fargo Capital
Finance, LLC
	 	$	20,000,000	 	 	$	20,000,000	 	 	$	40,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	All Lenders
	 	$	20,000,000	 	 	$	20,000,000	 	 	$	40,000,000Exhibit 10.2

Exhibit 10.2

Execution Copy

PURCHASE AGREEMENT

dated as of August 17, 2010

by and among

WESTWOOD ONE, INC.

and

GORES RADIO HOLDINGS, LLC

 

 

 

PURCHASE AGREEMENT

This Purchase Agreement is entered into and dated as of August 17, 2010 (this “Agreement”),
among Westwood One, Inc., a Delaware corporation (the “Company”), and Gores Radio Holdings, LLC
(the “Purchaser”).

WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires
to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, certain
securities of the Company pursuant to the terms set forth herein.

NOW, THEREFORE, the Company and the Purchaser hereby agree as follows:

ARTICLE I.

DEFINITIONS

1.1 Definitions. The following terms shall have the meanings set forth in this
Section 1.1:

“$” means U.S. Dollars.

“Affiliate” of a Person means any other Person that, directly or indirectly through one or
more intermediaries, controls or is controlled by or is under common control with the first Person.
Without limiting the foregoing with respect to the Purchaser, any investment fund, managed account
or investment Person that is managed by the same investment manager (or an Affiliate of such
investment manager) as the Purchaser will be deemed to be an Affiliate of the Purchaser.

“Aggregate Purchase Price Consideration” means the sum of (a) the Aggregate Tranche 1 Purchase
Price plus (b) the Aggregate Tranche 2 Purchase Price.

“Aggregate Tranche 1 Purchase Price” has the meaning set forth in Section 2.1(a).

“Aggregate Tranche 2 Purchase Price” means (a) $10,000,000 less (b) the aggregate Net Cash
Proceeds received by the Company and its Subsidiaries in connection with the sale of Qualified
Equity Interests of the Company, after the date hereof and on or prior to the Second Closing Date.

“assets” or “property” means all assets and property of any nature whatsoever, real, personal,
mixed, tangible, intangible or otherwise.

“Board” means the Board of Directors of the Company.

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

“Closing” means the First Closing or the Second Closing, as the context so requires.

“Closing Date” means the First Closing Date or the Second Closing Date as applicable.

“Commission” means the U.S. Securities and Exchange Commission.

“Common Shares” means the shares of Common Stock purchased by the Purchaser hereunder.

 

1

 

“Common Shares Aggregate Purchase Price” has the meaning set forth in Section 2.1(a).

“Common Stock” means the common stock of the Company, par value $0.01 per share, and any
securities into which such stock may hereafter be reclassified.

“Company” has the meaning set forth in the recitals hereto.

“Consent” means any approval, consent, ratification, license, permission, registration,
Permit, waiver or other authorization.

“contract” or “agreement” means any agreement, contract, lease, mortgage, power of attorney,
evidence of indebtedness, letter of credit, undertaking, covenant not to compete, license,
instrument, obligation, commitment, understanding, policy, purchase or sales order, quotation or
other commitment, whether oral or written, express or implied.

“control” including the terms “controlled by” and “under common control with” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, as trustee or
executor, by contract or credit arrangement or otherwise.

“Debt Restructuring Agreements” means the Financing Documents and the New Loan Agreement
Documents as such terms are defined in the Securities Purchase Agreement.

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

“Fair Market Value” means the “Fair Market Value” per share of the Common Stock of the Company
on a given date determined as follows: (x) if the Common Stock of the Company is publicly traded in
the over-the-counter market, then the average of the per share volume-weighted average price for
the Company’s Primary Exchange as displayed under the heading “VWAP” on the Bloomberg Financial
Markets Information Service (or, if Bloomberg ceases to publish such price, any successor service
reasonably chosen by the Company) page “WWON<Equity> VWAP” (or the equivalent successor if
such page is not available), in respect of the period from the open of trading on the relevant
trading day until the close of trading on such trading day for the 30 consecutive Trading Days
ended on the Trading Day immediately preceding such date, or (y) if no such quotations are
available, the fair value of such shares as of such date as determined by mutual agreement of the
Board and the Purchaser, or, if they shall fail to agree within 10 Business Days (or a further
period on written agreement of all such parties), by an independent internationally-recognized
investment banking firm selected by the Board with the consent of the Purchaser (the fees and
expenses of which shall be paid by the Company). Notwithstanding the foregoing, if the Fair Market
Value of the shares of Common Stock determined in accordance with clause (x) or (y) of the
preceding sentence, as applicable, is less than $4.00 per share, the Fair Market Value of each
share of Common Stock shall be deemed to be $4.00 per share, and if the Fair Market Value of the
shares of Common Stock determined in accordance with clause (x) or (y) of the preceding sentence,
as applicable, is greater than $9.00 per share, the Fair Market Value of each share of Common Stock
shall be deemed to be $9.00 per share.

 

2

 

“First Closing” means the closing of the purchase and sale of the Tranche 1 Common Shares
pursuant to Section 2.1(a).

“First Closing Date” means the date on which the First Closing occurs.

“GAAP” means United States generally accepted accounting principles, as recognized by the
American Institute of Certified Public Accountants or the Financial Accounting Standards Board,
consistently applied and maintained on a consistent basis for the Company and its Subsidiaries
throughout the period indicated.

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

“Gores” means The Gores Group, LLC and any successor or assignee thereof.

“Gores Matters” has the meaning set forth in Section 6.16.

“Gores Subordination Agreement” has the meaning ascribed to it in the Securities Purchase
Agreement.

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and
regulations and rules issued pursuant to that act.

“Indemnified Party” has the meaning set forth in Section 4.5(a).

“Investor Rights Agreement” means the Investor Rights Agreement, dated as of April 23, 2009,
among the Company, Gores Radio Holdings, LLC and the other investors party thereto.

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

“liability” means any liability or obligation of any kind whatsoever (whether known or
unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or
unliquidated, due or to become due, and whether or not reflected or required by GAAP to be
reflected on a balance sheet of the Company).

“Losses” means any and all damages, fines, penalties, deficiencies, liabilities, claims,
losses (including diminution in or loss of value), judgments, awards, settlements, Taxes, actions,
obligations and costs and expenses in connection therewith (including interest, court costs and
reasonable fees and expenses of attorneys, accountants and other experts, and any other expenses of
litigation or other Proceedings (including costs of investigation, preparation and travel) or of
any default or assessment).

“Material Adverse Effect” means any material adverse effect on (a) the condition (financial or
otherwise), results of operations, assets, liabilities or business of the Company and its
Subsidiaries taken as a whole, (b) the ability of the Company or any Subsidiary to perform its
obligations
under this Agreement or any of the other Transaction Documents without substantial delay, or
(c) the legality, validity or enforceability of any Transaction Document.

 

3

 

“Material Provisions” has the meaning set forth ins Section 6.6.

“Net Cash Proceeds” has the meaning ascribed to it in the Securities Purchase Agreement.

“Noteholders” has the meaning ascribed to it in the Securities Purchase Agreement.

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

“ordinary course of business” means the ordinary course of business of the Company and the
Subsidiaries consistent with past practice.

“Permits” means all Orders, Consents, franchises, grants, easements, variances, exceptions and
certificates of any Governmental Authority.

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

“PR” has the meaning set forth in Section 6.16.

“Primary Exchange” means the “Primary Exchange” identified on page 2 on the Bloomberg
Financial Markets Information Service (or, if Bloomberg ceases to publish such price, any successor
service reasonably chosen by the Company) page “WWON<Equity> DES” (or the equivalent
successor if such page is not available).

“Proceeding” means an action, charge, claim, demand, suit, arbitration, inquiry, notice of
violation, investigation, litigation, audit or other proceeding (including a partial proceeding,
such as a deposition), whether civil, criminal, administrative, investigative or informal.

“Purchaser” has the meaning set forth in the recitals hereto.

“Qualified Equity Interests” has the meaning ascribed to it in the Securities Purchase
Agreement.

“Registration Rights Agreement” means the Registration Rights Agreement, dated as of March 3,
2008, between the Company and Gores Radio Holdings, LLC, as the same may be amended, modified or
supplemented from time to time.

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

 

4

 

“Required Holders” has the meaning ascribed to it in the Securities Purchase Agreement.

“Second Closing” means the closing of the purchase and sale of the Tranche 2 Common Shares
pursuant to Section 2.1(b).

“Second Closing Date” means the date on which the Second Closing occurs.

“Second Amendment” means an amendment to the Registration Rights Agreement in the form
attached hereto as Exhibit A.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

“Securities Purchase Agreement” means the Securities Purchase Agreement, dated as of April 23,
2009, between the Company and parties set forth on Schedule A thereto, as may be amended,
restated or otherwise modified through the date hereof.

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

“Taxes” means any and all taxes, fees, levies, duties, tariffs, imposts and other charges of
any kind (together with any and all interest, penalties, additions to tax and additional amounts
imposed with respect thereto) imposed by any Governmental Authority or other taxing authority,
including: taxes or other charges on or with respect to income, franchise, windfall or other
profits, gross receipts, property, sales, use, payroll, employment, social security, workers’
compensation, unemployment compensation or net worth; taxes or other charges in the nature of
excise, withholding, ad valorem, stamp, transfer, value-added or gains taxes; license, registration
and documentation fees; and customers’ duties, tariffs and similar charges.

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

“Trading Market” means the NASDAQ stock market or, at any time the Common Stock is not listed
for trading on the NASDAQ stock market, any other national exchange, if the Common Stock is then
listed on such exchange.

“Tranche 1 Common Shares” has the meaning set forth in Section 2.1(a).

“Tranche 2 Common Shares” has the meaning set forth in Section 2.1(b).

“Tranche 2 Notice” means a written notice delivered by the Company to the Purchaser following
the good faith determination by a majority of the independent directors of the Board that the
Company needs the proceeds from the sale of the Tranche 2 Common Shares for liquidity purposes.

 

5

 

“Tranche 2 Per Share Purchase Price” has the meaning set forth in Section 2.1(b).

“Transaction Documents” means this Agreement, Debt Restructuring Agreements, the Second
Amendment and any other document, instrument or agreement entered into in connection with the
purchase and sale of the Common Shares hereunder.

“Transactions” means the transactions contemplated by the Transaction Documents.

“U.S.” means the United States of America.

“WON Matters” has the meaning set forth in Section 6.16.

ARTICLE II.

PURCHASE AND SALE

2.1 Closing.

(a) On the terms and subject to the conditions set forth in this Agreement applicable to the
First Closing, at the First Closing, the Company shall issue and sell to the Purchaser, and the
Purchaser shall purchase from the Company, 769,231 Common Shares (the “Tranche 1 Common Shares”)
for an aggregate purchase price of $5,000,001.50 (the “Aggregate Tranche 1 Purchase Price”).

(b) On the terms and subject to the conditions set forth in this Agreement applicable to the
Second Closing, at the Second Closing, the Company shall issue and sell to the Purchaser, and the
Purchaser shall purchase from the Company, an additional number of Common Shares (the “Tranche 2
Common Shares”), the exact number of Common Shares to be determined by dividing the Aggregate
Tranche 2 Purchase Price by the Fair Market Value (as of the date that is 10 Trading Days prior to
the Second Closing Date) (the “Tranche 2 Per Share Purchase Price”), and rounding up to the nearest
whole number, for an aggregate purchase price equal to the number of Tranche 2 Common Shares
multiplied by the Tranche 2 Per Share Purchase Price. Neither the Company nor the Purchaser shall
have any obligation to consummate the Second Closing in the event that on or prior to the Second
Closing the Company and its Subsidiaries shall have received Net Cash Proceeds of at least
$10,000,000 in the aggregate from the issuance and sale of Qualified Equity Interests of the
Company to any Person (other than any Subsidiary), other than in connection with (i) the
transaction hereunder, or (ii) any stock or option grant to an employee of the Company or any
Subsidiary under a stock option plan or other similar incentive or compensation plan of the Company
or its Subsidiaries or upon the exercise thereof.

(c) Each Closing shall take place at the Los Angeles offices of Proskauer Rose LLP at 10:00
A.M. local time as follows, provided, that the satisfaction or waiver of all of the
conditions set forth in Article V applicable to such Closing (other than any condition that
by its nature must be satisfied on the applicable Closing Date) have been satisfied or waived, as
applicable, or at such other location or time as the parties may agree:

(i) with respect to the First Closing, on September 7, 2010; and

(ii) with respect to the Second Closing, on the earlier of (x) February 28, 2011 or (y)
10 Trading Days following delivery of a valid Tranche 2 Notice.

 

6

 

2.2 Closing Deliveries.

(a) At the First Closing, the Company shall deliver or cause to be delivered to the Purchaser
the Second Amendment, duly executed by the Company.

(b) At each Closing, the Company shall deliver or cause to be delivered to the Purchaser the
following:

(i) a certificate representing the number of Common Shares to be purchased by the Purchaser at
such Closing, registered in the name of the Purchaser (or its nominee);

(ii) the legal opinion of the General Counsel of the Company, in the form of Exhibit
B, executed by such counsel; and

(iii) a certificate dated as of the applicable Closing Date and signed by the Chief Executive
Officer or Chief Financial Officer of the Company certifying as to the fulfillment of each of the
conditions set forth in Section 5.1 applicable to such Closing.

(c) At each Closing, the Purchaser shall deliver or cause to be delivered to the Company the
Aggregate Tranche 1 Purchase Price or the Aggregate Tranche 2 Purchase Price, as the case may be,
in U.S. Dollars and in immediately available funds, by wire transfer to an account designated in
writing by the Company for such purpose.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

3.1 Representations and Warranties of the Company. The Company hereby represents and
warrants to the Purchaser that, as of the date hereof and, except for representations and
warranties that speak as of a specific date other than the respective Closing Dates, on each
Closing Date:

(a) Organization and Qualification. Each of the Company and the Subsidiaries is an
entity duly incorporated, validly existing and in good standing under the Laws of the jurisdiction
of its incorporation, with the requisite power and authority to own and use its properties and
assets and to carry on its business as currently conducted. Each of the Company and the
Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation
in each jurisdiction in which the nature of the business conducted or property owned by it makes
such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, would not reasonably be expected to, individually or in the aggregate, have a
Material Adverse Effect.

(b) Authorization; Enforcement. The Company has the requisite power and authority to
enter into and to consummate the Transactions and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of each of the Transaction Documents by the Company and
the consummation of the Transactions have been duly authorized by all necessary action on the part
of the Company and no further action, approval consent, ratification, license, permission,
registration, waiver or other authorization is required by the Company, the Board or the Company’s
stockholders. Each Transaction Document has been (or upon delivery will have been) duly executed
by the Company and, when delivered in accordance with the terms hereof, will constitute the valid
and binding obligation of the Company enforceable against the Company in accordance with its terms.
Each of the Board and a duly authorized committee of the Board (by the affirmative votes of a
majority of the disinterested directors of such committee) by resolutions duly adopted, and not
subsequently rescinded or modified in any way,
has, in good faith, duly authorized this Agreement and the Transactions, and has determined
that this Agreement and the Transactions are fair as to the Company as of the time of such
authorization.

 

7

 

(c) No Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation of the Transactions do not and will not (i) conflict
with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, by-laws or other organizational or charter documents, or (ii) conflict with, or
constitute a default (or an event that with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any contract to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected,
or (iii) result in a violation of any Law, except, in the cases of clauses (ii) and (iii), for any
such conflict, default, right, violation or other occurrence which would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

(d) Filings, Consents and Approvals. Neither the Company nor any Subsidiary is
required to obtain any Consent of, give any notice to, or make any filing or registration with, any
Governmental Authority or other Person in connection with the execution and delivery of the
Transaction Documents or the consummation of the Transactions, other than (i) those that the
Company or any of its Subsidiaries has obtained, given or made as of the date hereof, or (ii) those
required to be obtained, given or made after the date hereof, which shall be obtained, given or
made when so required.

(e) Issuance of the Common Shares. The Common Shares are duly authorized, and when
issued and paid for in accordance with the Transaction Documents, will be duly and validly issued,
fully paid and nonassessable, free and clear of all Encumbrances and shall not be subject to
preemptive rights or similar rights, other than those that have (i) been waived, or (ii) not been
exercised and the period for exercise has expired.

3.2 Representations and Warranties of the Purchaser. The Purchaser hereby represents
and warrants to the Company as follows:

(a) Organization; Authority. The Purchaser is an entity duly organized, validly
existing and in good standing under the Laws of the jurisdiction of its organization with the
requisite corporate, limited liability company or partnership power and authority to enter into and
to consummate the Transactions and otherwise to carry out its obligations hereunder and thereunder.
The execution, delivery and performance by the Purchaser of the Transaction Documents to which it
is a party have been duly authorized by all necessary limited liability company action on the part
of the Purchaser. Each of the Transaction Documents to which the Purchaser is a party has been
duly executed by the Purchaser and, when delivered by the Purchaser in accordance with terms
hereof, will constitute the valid and binding obligation of the Purchaser, enforceable against it
in accordance with its terms.

(b) Investment Intent. The Purchaser is acquiring the Common Shares for investment
purposes and not with a view to distributing or reselling such Common Shares or any part thereof in
violation of applicable securities Laws, without prejudice, however, to the Purchaser’s right at
all times to sell or otherwise dispose of all or any part of such Common Shares in compliance with
applicable federal or state securities laws. Nothing contained herein shall be deemed a
representation or warranty by the Purchaser to hold the Common Shares for any period of time. The
Purchaser understands that the Common Shares have not been registered under the Securities Act, and
therefore the Common Shares may not be sold, assigned or transferred in the U.S. other than
pursuant to (i) a registration statement under the Securities Act and applicable state securities
laws, or (ii) an exemption from such registration requirements.

 

8

 

(c) Purchaser Status. The Purchaser is an “accredited investor” within the meaning
of Rule 501(a) of Regulation D under the Securities Act.

(d) General Solicitation. The Purchaser is not purchasing the Common Shares as a
result of any advertisement, article, notice or other communication regarding the Common Shares
published in any newspaper, magazine or similar media or broadcast over television or radio or
presented at any seminar or any other general solicitation or general advertisement.

(e) Reliance on Exemptions. The Purchaser understands that the Common Shares are
being offered and sold to it in reliance on specific exemptions from the registration requirements
of U.S. federal and state securities Laws and that the Company is relying in part upon the truth
and accuracy of, and the Purchaser’s representations and warranties set forth herein in order to
determine the availability of such exemptions and the eligibility of the Purchaser to acquire the
Common Shares.

(f) Ability to Protect Its Own Investment and Bear Economic Risks. By reason of the
business and financial experience of the Purchaser, the Purchaser has the capacity to protect its
own interests in connection with the Transactions and is able to bear the economic risk of an
investment in the Common Shares.

(g) Ability to Consummate Transactions. The Purchaser has available to it sufficient
funds to pay the Aggregate Purchase Price Consideration and to make other necessary payments by the
Purchaser in connection with the Transactions and will have available to it on each Closing Date
sufficient funds to pay such amounts.

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

4.1 Transfer Restrictions.

(a) Common Shares may only be disposed of pursuant to an effective registration statement
under the Securities Act or pursuant to an available exemption from the registration requirements
of the Securities Act, and in compliance with any applicable state securities Laws.

(b) The Purchaser agrees to the imprinting on any certificate evidencing the Common Shares in
substantially the form set forth in the Investor Rights Agreement.

4.2 Integration. The Company shall not, and shall use its reasonable best efforts to
ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or
otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that
would be integrated with the offer or sale of the Common Shares in a manner that would require the
registration under the Securities Act of the sale of the Common Shares to the Purchaser, or that
would be integrated with the offer or sale of the Common Shares for purposes of the rules and
regulations of the Trading Market.

4.3 Reservation of Common Shares.

The Company shall maintain a reserve from its duly authorized Common Stock for issuance
pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations
in full under the Transaction Documents.

4.4 Investigation. No investigation made by Gores and its employees, advisors and
other representatives shall affect the representations, warranties and agreements made by the
Company
pursuant to this Agreement, and each such representation, warranty and agreement shall survive
any such investigation in accordance with the terms of this Agreement.

 

9

 

4.5 Indemnification.

(a) The Company shall indemnify, to the fullest extent lawful, and hold harmless the
Purchaser and Related Person, and their respective directors, officers, employees, agents and
representatives (collectively, “Indemnified Parties”) from and against any and all Losses, as
incurred, directly or indirectly arising out of, based upon or relating to (a) any breach by the
Company of any of its representations, warranties or covenants in this Agreement or any other
Transaction Document or (b) any Proceeding by or against any Person, directly or indirectly, in
connection with or as a result of any of any of the Transactions except to the extent any such
Proceeding arose out of, is based upon or relates to any act or failure to act by the Purchaser
that is in breach in any material respect of this Agreement or in violation of any Law. The
payment obligations of the Company to the Indemnified Parties under this Section 4.5(a)
shall be subordinated and junior in right of payment to all payment obligations of the Company to
the Noteholders under the Debt Restructuring Agreements to the same extent as the “Subordinated
Debt” (as defined in the Gores Subordination Agreement) is subordinated to the “Senior Debt” (as
defined in the Gores Subordination Agreement) under the Gores Subordination Agreement.

(b) If any Proceeding shall be brought or asserted against any Indemnified Party, such
Indemnified Party shall promptly notify the Company in writing, and the Company shall assume the
defense thereof, including the engagement of counsel reasonably satisfactory to the Indemnified
Party and the payment of all fees and expenses incurred in connection with defense thereof;
provided, that the failure of any Indemnified Party to give such notice shall not relieve
the Company of its obligations or liabilities pursuant to this Agreement, except (and only) to the
extent that it shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) that such failure shall have materially
adversely prejudiced the Company.

An Indemnified Party shall have the right to engage separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party or Parties unless: (i) the Company has agreed in writing to
pay such fees and expenses; (ii) the Company shall have failed promptly to assume the defense of
such Proceeding; (iii) the Company shall have failed promptly to engage counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding (in each case, only with respect to
such Indemnified Party); or (iv) the named parties to any such Proceeding (including any impleaded
parties) include both such Indemnified Party and the Company or any of its Affiliates, and such
Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist
if the same counsel were to represent such Indemnified Party and the Company or such Affiliates (in
which case, under any of clauses (i) through (iv), such counsel shall be at the expense of the
Company). The Company shall not be liable for any settlement of any Proceeding effected without
its written consent, which consent shall not be unreasonably withheld. The Company shall not,
without the prior written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability arising out of such Proceeding.

(c) The indemnification and expense reimbursement obligations of the Company under this
Section 4.5 shall be in addition to any liability that the Company may otherwise have and
shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal
representatives of the Indemnified Parties. If the Company breaches its obligations under any
Transaction Document, then, in addition to any other liabilities the Company may have under any
Transaction Document or applicable Law, the Company shall pay or reimburse the Indemnified Parties
on demand for all costs of collection
and enforcement (including reasonable attorneys’ fees and expenses), provided that the
Indemnified Parties prevail in such matters. Without limiting the generality of the foregoing, the
Company specifically agrees to reimburse the Indemnified Parties on demand for all costs of
enforcing the indemnification obligations in this paragraph, subject to the Indemnified Parties
entering into an undertaking to reimburse all such amounts, in the event the Indemnified Parties do
not prevail on such matters and subject to the last sentence of Section 4.5(a)  above.
For purposes of clarity, the provisions contained in this Section 4.5 shall not constitute
the exclusive remedies of any Indemnified Party hereunder.

 

10

 

4.6 Approvals; Taking of Actions. Subject to the terms and conditions of this
Agreement, the Company shall use its commercially reasonable best efforts to (i) take or cause to
be taken all actions, and to do or cause to be done all other things, necessary, proper or
advisable to consummate the Transactions as promptly as practicable, and (ii) obtain in a timely
manner all necessary Consents and effect all necessary registrations and filings. The Company
shall be responsible for all filing fees required to be paid in connection any filings or approvals
required under the HSR Act. The Purchaser and the Company shall cooperate with each other in
connection with the making of all such filings, including providing copies of all such documents to
the non-filing party and its advisors before filing. The Purchaser and the Company shall use their
respective commercially reasonable efforts to furnish to each other all information required for
any application or other filing to be made pursuant to the rules and regulations of any applicable
Law in connection with the Transactions. The Company shall give any notices to third parties, and
use their commercially reasonable efforts to obtain any third party Consents related to or required
in connection with or to consummate the Transactions. Notwithstanding the foregoing or any other
covenant contained herein, in connection with the receipt of any necessary Consents, including
under the HSR Act or under any applicable foreign anti-trust laws, nothing shall require the
Company to (i) divest or hold separate any material part of its businesses or operations or (ii)
agree not to compete in any geographic area or line of business or agree to take, or not to take,
any other action or comply with any other term or condition, in such a manner as would reasonably
be expected to result in a Material Adverse Effect.

ARTICLE V.

CONDITIONS

5.1 Conditions Precedent to the Obligations of the Purchaser. The obligation of the
Purchaser to acquire the Common Shares is subject to the satisfaction or, to the extent permitted
by Law, waiver by the Purchaser, at or before the First Closing or the Second Closing, as
applicable, of each of the following conditions (which, unless expressly stated otherwise, apply to
both Closings):

(a) Representations and Warranties. All representations and warranties of the
Company contained in this Agreement shall have been true and correct as of the date hereof and,
except for representations and warranties that speak as of a specific date other than the
respective Closing Dates, which need only be true and correct as of such specific date, shall have
been true and correct in all material respects as of each Closing Date.

(b) Performance. The Company shall have performed, satisfied and complied in all
material respects with all covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by it at or before the applicable Closing,
including delivering or causing the delivery of those items required to be delivered pursuant to
Section 2.2 as applicable to each Closing.

 

11

 

(c) Required Approvals. The Company shall have obtained in a timely fashion any and
all Consents, Permits and waivers necessary or appropriate for consummation of the purchase and
sale of the Common Shares, and all of which shall be and remain so long as necessary in full force
and effect.

(d) Amendment. The Registration Rights Agreement shall have been amended by the
Second Amendment.

(e) Debt Restructuring. The transactions contemplated by the Debt Restructuring
Agreements, shall have been consummated.

5.2 Conditions Precedent to the Obligations of the Company. The obligation of the
Company to sell the Common Shares is subject to the satisfaction or, to the extent permitted by
law, waiver by the Company, at or before the First Closing or the Second Closing, as applicable, of
each of the following conditions (which, unless expressly stated otherwise, apply to both
Closings):

(a) Representations and Warranties. The representations and warranties of the
Purchaser contained herein shall be true and correct in all material respects as of the date when
made and as of each Closing Date as though made on and as of such date.

(b) Performance. The Purchaser shall have performed, satisfied and complied in all
material respects with all covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by the Purchaser at or before the applicable
Closing, including delivering or causing the delivery of those items required to be delivered
pursuant to Section 2.2 as applicable to each Closing.

(c) No Injunction. No Law or Order shall have been enacted, entered, promulgated or
endorsed by any Governmental Authority of competent jurisdiction that prohibits the consummation of
any of the Transactions.

ARTICLE VI.

MISCELLANEOUS

6.1 Survival. Except for the representations and warranties set forth in (a)
Sections 3.1(a), 3.1(b) and 3.1(e) each of which shall survive
indefinitely, the representations and warranties of a party contained in this Agreement (and the
portion of any certificate certifying such representations and warranties) shall survive the
closing of the transactions contemplated in this Agreement until the 24-month anniversary of the
Second Closing Date (or if there is no Second Closing, the First Closing Date), unless a bona fide
notice of a claim shall have been made in writing before such date, in which case the
representation and warranty to which such notice applies shall survive in respect of that claim
until the final determination or settlement of the claim, and, notwithstanding such closing nor any
investigation made by or on behalf of the party entitled to rely on such representation and
warranty, shall continue in full force and effect for the benefit of such party during such period.

6.2 Fees and Expenses.

(a) The Company shall pay the actual and reasonable legal, accounting, consulting, travel and
all other out-of-pocket expenses incurred by or on behalf of the Purchaser in connection with due
diligence and the preparation and negotiation of the Transaction Documents and otherwise in
connection with the Transactions, in each case, promptly following Gores’ request.

 

12

 

(b) Except as expressly set forth in this Section 6.2 or the Transaction Documents to
the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. The Company shall pay all
transfer agent fees, stamp Taxes and other Taxes and duties levied in connection with the issuance
of the Common Shares.

6.3 Entire Agreement. The Transaction Documents, together with the Exhibits and
Schedules thereto, contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, both oral or written.

6.4 Further Assurances. At or after the Closing, and without further consideration,
each of the parties will execute and deliver to the other parties such further documents and take
such further action as may be reasonably requested in order to give practical effect to the
intention of the parties under the Transaction Documents.

6.5 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on
the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile or by other means of electronic communication at the facsimile number or e-mail address
specified in this Section 6.5 before 5:30 p.m. (New York City time) on a Trading Day, (ii)
the Trading Day after the date of transmission, if such notice or communication is delivered via
facsimile or by other means of electronic communication at the facsimile number or e-mail address
specified in this Section 6.5 specified in this Agreement later than 5:30 p.m. (New York
City time) on any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) the
Trading Day following the date of sending, if sent by nationally recognized overnight courier
service, specifying next business day delivery or (iv) upon actual receipt by the party to whom
such notice is required to be given if mailed by registered or certified mail, return receipt
requested, postage prepaid or otherwise delivered by hand. The address for such notices and
communications shall be as follows:

	 	 	 	 	 
	 
	 	If to the Company:	 	Westwood One, Inc.

	 
	 	 	 	1166 Avenue of the Americas

	 
	 	 	 	10th Floor

	 
	 	 	 	New York, New York  10036

	 
	 	 	 	Attn: General Counsel

	 
	 	 	 	Phone: (212) 641-2000

	 
	 	 	 	Fax: (212) 641-2198

	 
	 	 	 	Email: dhillman@westwoodone.com
	 
	 	 	 	 
	 
	 	With a copy to (which shall not constitute notice):	 	With a copy to:
	 
	 	 	 	 
	 
	 	 	 	Skadden, Arps, Slate, Meagher & Flom LLP

	 
	 	 	 	300 South Grand Avenue

	 
	 	 	 	Suite 3400

	 
	 	 	 	Los Angeles, California 90071

	 
	 	 	 	Attn: Brian J. McCarthy

	 
	 	 	 	Phone: (213) 687-5000

	 
	 	 	 	Fax: (213) 687-5600

	 
	 	 	 	Email: brian.mccarthy@skadden.com
	 
	 	 	 	 
	 
	 	If to the Purchaser:	 	To the addresses set forth under the Purchaser’s name on the signature page attached hereto.

 

13

 

or such other address as may be designated in writing hereafter, in the same manner, by such
Person by two Trading Days prior notice to the other party in accordance with this Section
6.5.

6.6 Amendments; Waivers. The provisions of this Agreement, including the provisions
of this sentence, may not be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the same shall be in writing and
signed by (a) the Company, (b) the Purchaser, and (c) to the extent affecting Section 2.1
hereof (or any of the defined terms as used therein), or otherwise materially adversely affecting
the Noteholders, as such, the Required Holders. The provisions referred to in the preceding
clause (c) are referred to as the “Material Provisions.” No waiver of any default with respect to
any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver
in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of either party to exercise any right
hereunder in any manner impair the exercise of any such right.

6.7 Construction. The headings herein are for convenience of reference only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect any of the
provisions hereof. Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” 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. The
definitions contained in this Agreement are applicable to the singular as well as the plural forms
of such terms and to the masculine as well as to the feminine and neuter genders of such term. The
language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party. Any
contract, statute or rule defined or referred to herein means such contract, statute or rule as
from time to time amended, modified or supplemented, including (in the case of contracts) by waiver
or consent and (in the case of statutes or rules) by succession of comparable successor statutes or
rules and references to all attachments thereto and instruments incorporated therein. References
to a Person are also to its permitted successors and assigns.

6.8 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted assigns. The Company may not
assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Purchaser. The Purchaser may assign its rights under this Agreement after the Closing to any
Person to whom the Purchaser assigns or transfers any Common Shares, provided (a) such transferee
agrees in writing to be bound, with respect to the transferred Common Shares, by the provisions
hereof and of the Transaction Documents that apply to the “Purchaser” and (b) the Purchaser shall
not be relieved of its obligations hereunder in connection with any such assignment.
Notwithstanding anything to the contrary herein, Common Shares may be pledged to a bank or
financial lending institution in connection with a bona fide loan or financing arrangement,
provided, that prior to any foreclosure thereunder such pledgee shall enter into an
agreement, in form and substance reasonably satisfactory to the Company, making the restrictions
set forth in the Transaction Documents applicable to such pledgee.

6.9 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other Person, except that (a) the Noteholders, as
such, are intended third party beneficiaries of the Material Provisions of this Agreement, and (b)
each Indemnified Party is an intended third party beneficiary of Section 4.5 and (in each
case) may enforce the provisions of Section 4.5 directly against the parties with
obligations thereunder.

 

14

 

6.10 Governing Law; Venue; Waiver of Jury Trial. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal Laws of the State of New York. Each party
agrees that all legal proceedings concerning the interpretations, enforcement and defense of the
Transactions (whether brought against a party hereto or its respective Affiliates, directors,
officers, stockholders, employees or agents) shall be commenced exclusively in the state and U.S.
federal courts sitting in the City of New York, Borough of Manhattan. Each party hereto hereby
irrevocably submits to the exclusive jurisdiction of the state and U.S. federal courts sitting in
the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in
connection herewith or with any Transaction or discussed herein (including with respect to the
enforcement of any of this Agreement), and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is improper. Each party hereto hereby
irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any manner permitted by Law. Each party hereto 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 Agreement or any of the Transaction Documents or the
Transactions. If either party shall commence a proceeding to enforce any provisions of this
Agreement or any Transaction Document, then the prevailing party in such action or proceeding shall
be reimbursed by the other party for its reasonable attorneys fees and other reasonable costs and
expenses incurred with the investigation, preparation and prosecution of such proceeding.

6.11 Execution. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. If any signature is delivered by
facsimile transmission, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature page were an original thereof.

6.12 Severability. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
in good faith to agree upon a valid and enforceable provision that is a reasonable substitute
therefor and effects the original intent of the parties as closely as possible, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

6.13 Rescission and Withdrawal Right. Notwithstanding anything to the contrary
contained in (and without limiting any similar provisions of) the Transaction Documents, whenever
the Purchaser exercises a right, election, demand or option under a Transaction Document and the
Company does not timely perform its related obligations within the periods therein provided, then
the Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice
to the Company, any relevant notice, demand or election in whole or in part without prejudice to
its future actions and rights.

6.14 Replacement of Common Shares. If any certificate or instrument evidencing any
Common Shares is mutilated, lost, stolen or destroyed, upon receipt of evidence to the Company’s
reasonable satisfaction of such mutilation, loss, theft or destruction, the Company shall issue or
cause to
be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and
substitution therefor, a new certificate or instrument. Applicants for such substitute
certificates shall also comply with such other reasonable regulations and pay such other reasonable
charges incidental thereto as the Company may reasonably prescribe.

 

15

 

6.15 Remedies. In addition to being entitled to exercise all rights provided herein
or granted by Law, including recovery of damages, the Purchaser and the Company will be entitled to
specific performance under the Transaction Documents. The parties agree that monetary damages may
not be adequate compensation for any loss incurred by reason of any breach of obligations described
in the foregoing sentence and hereby agrees to waive in any Proceeding for specific performance of
any such obligation the defense that a remedy at Law would be adequate.

6.16 Conflict of Interest. Each party hereto hereby acknowledges and agrees that (a)
the Purchaser and certain of its Related Persons are clients of Proskauer Rose LLP (“PR”) on
matters related to the Purchaser’s investment in the Company (including with respect to the
Transactions) and other unrelated matters (the “Gores Matters”), (b) the Company is a client of PR
on certain unrelated matters (the “WON Matters”), (c) PR’s concurrent representation of the Company
on the WON Matters and the Purchaser and certain of its Related Persons on the Gores Matters
presents a potential conflict of interest for PR, and (d) such party (i) understands the possible
adverse effects of PR’s simultaneous representation of WON on the WON Matters and the Purchaser and
certain of its Related Persons on the Gores Matters, and (ii) has consented to PR’s representation
of WON on the WON Matters and the Purchaser and certain of its Related Persons on the Gores
Matters, as described above.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES FOLLOW]

 

16

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized signatories as of the date first indicated above.

	 	 	 	 	 
	 	WESTWOOD ONE, INC.

 	 
	 	By:  	/s/ Roderick M. Sherwood, III
 	 
	 	 	Name:  	Roderick M. Sherwood, III 	 
	 	 	Title:  	President and CFO 	 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF PURCHASER(S) FOLLOW.]

 

 

 

	 	 	 	 	 	 	 
	 	 	GORES RADIO HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	The Gores Group, LLC, its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven G. Eisner
 

Name: Steven G. Eisner
	 	 
	 

	 	 	 	Title:   Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address for Notice:
	 	 
	 
	 	 	 	 	 	 
	 	 	GORES RADIO HOLDINGS, LLC	 	 
	 	 	10877 Wilshire Boulevard	 	 
	 	 	18th Floor	 	 
	 	 	Los Angeles, California 90024	 	 
	 	 	Attn: General Counsel	 	 
	 	 	Phone: (310) 209-3010	 	 
	 	 	Fax: (310) 209 3310	 	 
	 
	 	 	 	 	 	 
	With a copy to (which shall not constitute notice):	 	With a copy to (which shall not constitute notice):	 	 
	 
	 	 	 	 	 	 
	GORES RADIO HOLDINGS, LLC	 	PROSKAUER ROSE LLP	 	 
	10877 Wilshire Boulevard	 	2049 Century Park East	 	 
	18th Floor	 	32nd Floor	 	 
	Los Angeles, California 90024	 	Los Angeles, California 90067	 	 
	Attn: Ian Weingarten	 	Attn: Michael A. Woronoff, Esq.	 	 
	Phone: (310) 209-3010	 	Phone: (310) 557-2900	 	 
	Fax: (310) 209 3310	 	Fax: (310) 557-2193

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