Document:

exv10w4

 

Exhibit 10.4

TRADEMARK AND COPYRIGHT LICENSE AGREEMENT 

     THIS TRADEMARK AND COPYRIGHT LICENSE AGREEMENT (this “Agreement”) is made effective as
of December 21, 2005 (the “Effective Date”) by and between Clear Channel Identity, L.P., a
Delaware limited partnership (“Licensor”), and CCE Spinco, Inc., a Delaware corporation
(“Licensee”).

RECITALS:

     WHEREAS, Licensee is a wholly owned subsidiary of Licensor and, as such, has been using
certain of Licensor’s intellectually property pursuant to a license in connection with the
production and promotion of live entertainment (the “Business”);

     WHEREAS, Licensee will cease to be a wholly owned subsidiary of Licensor pursuant to a
separate agreement between the parties entitled Master Separation and Distribution Agreement;

     WHEREAS, Licensor is the owner of the trademark CLEAR CHANNEL and variations thereof, other
marks incorporating the term CLEAR CHANNEL and variations thereof, the mark CC and variations
thereof, and the C Logo shown on Exhibit A and variations thereof, and other marks used in
connection with the Business that would indicate an affiliation with Licensor when used, and trade
dress and other indicia of origin associated with such trademarks (collectively, the
“Marks”) and is the owner of trademark registrations and applications for the Marks;

     WHEREAS, Licensor is the owner of the copyrights in packaging, labels, signage, marketing,
advertising and promotional materials that bear or display the Marks (collectively, the
“Copyrights”);

     WHEREAS, Licensor owns certain Internet domain name registrations that incorporate the Marks,
including, without limitation, those set forth on Exhibit B (collectively, the
“Domains”);

     WHEREAS, although certain of the Marks, certain of the Domains and certain of the Copyrights
are assets currently used in the Business, Licensee does not own and is not acquiring from Licensor
any rights in the Marks, the Domains or the Copyrights;

     WHEREAS, the parties, by this Agreement, desire to establish Licensee’s right to continue to
use certain of the Marks and certain of the Copyrights in the Licensed Territory (as defined below)
for the Business, during a transitional period, under the terms and conditions set forth in this
Agreement.

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and
agreements contained herein, the parties hereto agree as follows:

 

 

AGREEMENT:

1.     CERTAIN DEFINITIONS.

     The following terms shall have the following meanings as used herein:

     (a)     “Affiliate” means, with respect to a specified person or entity, any other person
or entity or member of a group of persons or entities acting together that, directly or indirectly,
through one or more intermediaries, controls, or is controlled by or is under common control with,
the specified person or entity.

     (b)     “Distribution Date” shall mean that certain day defined as such under the Master
Separation and Distribution Agreement between the parties, dated December 20, 2005.

     (c)     “Domain Names” shall mean the domain name registrations that incorporate the
Marks, including, but not limited to, those set forth in Exhibit B, as may be amended from
time to time, used in connection with the Business.

     (d)     “Licensed Copyrighted Works” shall mean all packaging, labels, signage, marketing,
advertising and promotional materials bearing or displaying the Licensed Marks including website
materials that are used by Licensee for the Business in the Licensed Territory as of the Effective
Date, in only the specific form or medium in which they are embodied as of the Effective Date, or
in such other form as may be approved by Licensor as provided in Section 2, to the extent
that Licensor or one of its Affiliates owns each such work.

     (e)     “Licensed Marks” shall mean the Marks as and in the form in which they are used by
Licensee on or in connection with the Business in the Licensed Territory as of the Effective Date.

     (f)     “Licensed Territory” shall mean the world.

     (g)     “Term” shall mean the period beginning on the Effective Date and ending on the
first to occur of (i) the one year anniversary of the Distribution Date and (ii) the termination of
this Agreement pursuant to Section 11.2.

     (h)     “Trademark Rights” shall mean, collectively, all foreign, federal, state, and
common law rights in and to the Licensed Marks.

2.     GRANT OF LICENSES; RESERVATION OF RIGHTS.

     2.1     Trademark License. Upon the terms and conditions set forth in this Agreement,
Licensor grants to Licensee a revocable, non-exclusive, non-transferable license to utilize the
Licensed Marks solely upon and in connection with the Business in the Licensed Territory during the
Term (the “Trademark License”).

     2.2     Royalty Fee. Licensee shall pay Licensor for the use of the Licensed Marks
pursuant to the amount set forth on Exhibit C, attached hereto. The amount owed by
Licensee shall accrue throughout the Term and shall be paid quarterly as follows: Within thirty
(30) days

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after the end of each of the Licensor’s and Licensee’s fiscal quarters, Licensee shall pay to
Licensor the total amount owed by Licensee to Licensor for the use of the Licensed Marks under this
Agreement during such fiscal quarter.

     2.3     Limitations on Trademark License. The Trademark License is limited to the
Business, provided that the products and services provided in connection with the Business are at
least of a quality that is substantially the same as or is higher than the quality of those
currently provided or sold by Licensee as of the Effective Date. NO LICENSE IS GRANTED HEREUNDER
FOR ANY USE OTHER THAN THAT SPECIFIED, AND NO LICENSE IS GRANTED HEREUNDER FOR ANY COMBINATION OF
THE LICENSED MARKS WITH OTHER PRODUCTS, SERVICES OR MARKS WITHOUT PRIOR WRITTEN CONSENT OF LICENSOR
WHICH SHALL NOT BE UNREASONABLY WITHHELD OR DELAYED.

     (a)     Licensee may use other marks, including marks owned by third parties, for the
Business, in addition to the Licensed Marks, provided Licensee has obtained the necessary
rights from the third party, if any. In no event shall the other mark be used in such a
manner that, in Licensor’s reasonable business judgment, a composite mark is created that
includes any of the Licensed Marks and, notwithstanding anything to the contrary in this
Agreement, Licensor may reject any proposed use that bears such a composite mark.

     (b)     It is hereby recognized that Licensee may wish to transition to a new mark or an
existing mark owned by Licensee during the course of this Agreement and phase out the use of
the Licensed Marks gradually during the Term. In connection with such transition, Licensee
may wish to utilize such new or existing mark in connection with the Business in addition to
the Licensed Marks. In the event Licensee desires to utilize both the Licensed Marks and a
new mark simultaneously during the transition, Licensee shall provide at least thirty (30)
calendar days prior written notice to Licensor of such proposed transition, along with a
rendering of the proposed transitional usage. Licensor shall have a period of thirty (30)
calendar days following receipt of such notice and rendition in which to give or withhold
its approval of such transitional usage and Licensor shall be deemed to not have approved
such transitional usage if Licensor does not deliver to Licensee its written approval
thereof within such thirty (30) calendar day period. Licensor shall not unreasonably
withhold or delay its approval, but such approval shall not be deemed to be unreasonable if
(i) the proposed usage of the Licensed Marks with such transitional mark creates, in
Licensor’s reasonable business judgment, a composite mark that includes any of the Licensed
Marks, (ii) if the new mark proposed to be used by Licensee in addition to the Licensed
Marks is confusingly similar to the Licensed Marks, or (iii) if the proposed usage is
derogatory or coveys a negative connotation with respect to Licensor or the Licensed Marks.

     2.4     Copyright License. Upon the terms and conditions set forth in this Agreement,
including, without limitation, those set forth in this Section 2.4, Licensor, on behalf of
itself and its Affiliates, grants to Licensee a revocable, nonexclusive, royalty-free, transferable
to the extent provided in Section 9.1, license to use, reproduce, distribute copies of,
make derivative works of, publish, distribute, display, broadcast and/or transmit the Licensed
Copyrighted Works in the Licensed Territory, through only the media utilized by Licensor as of the
Effective Date,

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for the limited purpose of enabling Licensee to exercise its rights under the Trademark
License (the “Copyright License”). By way of example, without limitation, in the case of a
print advertisement appearing in a particular magazine as of the Effective Date, the Copyright
License shall permit Licensee to utilize the advertisement in the same magazine. Notwithstanding
the foregoing, Licensee shall have the right during the Term to modify or create derivative works
of the Licensed Copyright Works and to use new media for the publication, distribution, display,
broadcast and/or transmission of same, subject to the prior written approval of Licensor, which
approval shall not be unreasonably withheld or delayed. In the event Licensee desires to modify,
create derivative works of or utilize new media for the publication, distribution, display,
broadcast and/or transmission of the Licensed Copyrighted Works in connection with the exercise of
its rights under the Trademark License, Licensee shall provide Licensor at least sixty (60)
calendar days prior written notice, which notice shall include reasonably sufficient details
concerning Licensee’s plans, including copies or drafts of the modified or derivative works, and a
list and description of the use thereof, including the media through which such works will be
published, distributed, displayed, broadcast and/or transmitted. Licensor shall have until the end
of such sixty (60) calendar day period in which to give or withhold its written approval for all or
a portion of the matters contained in Licensee’s notice; provided, that Licensor shall be deemed
not to have approved any matter contained in Licensee’s notice if Licensor does not deliver to
Licensee its written approval thereof within such sixty (60) calendar day period.

     (a)     Licensee shall cooperate with Licensor in connection with Licensor’s review of the
matters contained in Licensee’s notice, including by providing any additional information or
materials that may be requested by Licensor.

     (b)     Upon Licensor’s written approval of any modified or derivative works for use for
the Licensed Products such modified or derivative works shall be deemed to be “Licensed
Copyrighted Works.” In addition, upon approval (or deemed approval) by Licensor any
resulting trade dress or trademarks shall be deemed to be “Licensed Marks.” If
Licensor does not approve in writing any modified or derivative works, or the media through
which such works or any other Licensed Copyrighted Works are to be disseminated, then
Licensee shall be prohibited from employing same under the terms of this Agreement,
including under the Trademark License or the Copyright License. It is hereby expressly
understood, however, that the primary purpose of this Agreement is to enable Licensee to
transition to a new mark and trade dress for use in the Business. Accordingly, the failure
of Licensor to approve modified or derivative works shall not be deemed unreasonable if
Licensor, in its sole discretion, considers the proposed works to be a material alteration
of the Licensed Marks or Licensed Copyrighted Works as of the Effective Date.

     (c)     Any modified or derivative works not approved by Licensor hereunder and from which
the Licensed Marks are not removed or obliterated shall be promptly destroyed by Licensor,
Licensee and, if applicable, by any Permitted Third Party Provider (as defined in
Section 2.10).

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     2.5     Rights of and Obligations to Third Parties. Notwithstanding any other provisions
of this Agreement to the contrary, nothing in this Agreement shall be deemed to be a grant by
Licensor of a license, sublicense, or other grant of a right to Licensee to use any copyrights of a
third party or any rights under any third-party license that cannot be licensed, sublicensed
or granted without the consent, approval or agreement of another party, unless such consent,
approval or agreement is first obtained.

     2.6     Reservation of Rights. Notwithstanding anything herein to the contrary, Licensor
may utilize (and may license another party to utilize) the Licensed Marks in connection with any
business in the Licensed Territory. Further, this Agreement does not restrict or limit Licensor’s
rights to utilize or license the Licensed Marks in any manner. Notwithstanding anything contained
herein to the contrary, Licensor shall have the unrestricted right to utilize (and to license
another party to utilize) its copyrights in the Licensed Copyrighted Works.

     2.7     Term. Subject to the survival provisions of Section 11.4, the term of
this Agreement and the Trademark License and Copyright License granted hereunder shall begin on the
Effective Date and shall expire at the end of the Term. This Agreement will not be renewed or
extended, absent the execution of a separate document explicitly expressing such, executed by both
Licensor and Licensee.

     2.8     Domain Names. Licensee acknowledges that Licensor owns the Domain Names. For the
Term, Licensor agrees to maintain the Domain Names and redirect the certain domain names listed in
Exhibit B, as may be amended from time to time by mutual agreement of the Parties, to a new
website included in the New Works (as defined in Section 3.5) that Licensee may create
pursuant to this Agreement at a url that Licensee will register and maintain. Licensee shall be
responsible for hosting and maintaining the website, whether the website is part of the Licensed
Copyrighted Works or New Works. Licensor shall not be required to maintain registrations of the
Domain Names after expiration or termination of this Agreement, though it may, at its own
discretion, do so.

     2.9     Corporate Name. Notwithstanding the foregoing license grants, within ninety (90)
days of the Distribution Date, Licensee shall and shall cause any of its subsidiaries or
Affiliates, if necessary, to change, at its own expense, its corporate name to delete therefrom any
Licensed Marks or any words or phrases confusingly similar to the Licensed Marks that may be
incorporated therein.

     2.10     Permitted Third Party Providers. The parties acknowledge that Licensee may wish
to engage a third party manufacturer/service provider in connection with Licensee’s exercise of its
rights under the Trademark License and the Copyright License. Licensee shall give written notice
to Licensor of any proposed third party manufacturer/provider arrangement not less than ninety (90)
calendar days prior to Licensee’s engaging any third party manufacturer/provider (the “Notice
Period”), which notice shall contain the name of any proposed third party provider and a
summary of the terms of Licensee’s proposed arrangement with same. During the Notice Period,
Licensor shall have sole discretion as to whether to initially approve any proposed third party
manufacturer/provider; provided, that such approval shall not be unreasonably withheld or delayed.
Licensor shall advise Licensee whether it initially approves the proposed third party
manufacturer/provider as soon as practicable during the Notice

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Period. For purposes of this
Agreement, any third party manufacturer/provider that is approved by Licensor shall be a
“Permitted Third Party Provider.”

3.     DEVELOPMENT OF NEW TRADEMARK RIGHTS AND NEW COPYRIGHTS.

     3.1     Development of New Trademark Rights. Except as expressly provided in this
Agreement, Licensee shall not develop or acquire new Trademark Rights associated with the Business
or otherwise. Except as expressly permitted under Section 2 or as may be in use as of the
Effective Date, Licensee is not itself permitted to develop or use any derivative variations of any
of the Licensed Marks or to develop or use any variations, forms or stylizations of the Licensed
Marks. Trademark Rights that Licensee shall not develop or acquire include, but are not be limited
to, any federal, state, or foreign trademark registrations or applications, trademarks, trade
dress, trade names, service marks, symbols, slogans, emblems, logos, designs and other indicia of
origin or domain names incorporating the Licensed Marks. The parties acknowledge and agree that
any and all new Trademark Rights shall be considered included within the definition of
“Trademark Rights” for purposes of this entire Agreement. Notwithstanding the foregoing,
any new trademarks that are not derivations of, variations upon, or confusingly similar to, the
Licensed Marks that are developed by Licensee shall be the sole property of Licensee.

     3.2     Objection to New Trademark Rights. In the event that Licensee inadvertently or
intentionally develops or acquires new Trademark Rights, Licensee shall give prompt written notice
to Licensor of same. As soon as practicable after Licensor becomes aware of any new Trademark
Right inadvertently or intentionally developed or acquired by Licensee, Licensor shall have the
right to object to the new Trademark Right which it deems, in its sole discretion: (a) to be
incompatible or inconsistent with any other Trademark Rights, or with the image of the Licensed
Marks; (b) to be in violation of any law; or (c) to be otherwise inappropriate or offensive. Upon
Licensor’s objection to a new Trademark Right, Licensee shall: (a) promptly modify the new
Trademark Right to obviate Licensor’s objections, (b) promptly cease usage of the new Trademark
Right, and/or (c) withdraw or cancel (as appropriate) any pending trademark application or issued
trademark registration pertaining to the new Trademark Right.

     3.3     Requirement for Assignment of New Trademark Rights. The parties agree that
Licensor shall be deemed the owner of any rights Licensee may have in a new Trademark Right
(excluding any new trademarks that are not derivations of, variations on, or confusingly similar
to, the Licensed Marks. Upon request, Licensee shall promptly provide a confirmatory assignment of
any new Trademark Right to Licensor. Licensor has the right to refuse to license the new Trademark
Right to the Licensee for the remainder of the Term. Licensor shall have the right to use, and to
license others to use, any new Trademark Right after the termination of this Agreement. The
decision whether to seek or maintain any federal, foreign, or state registration for any new
Trademark Right or any of the Licensed Marks shall be made in the sole discretion of Licensor.
Licensee shall fully cooperate with Licensor, including executing any documents and providing any
materials that Licensor shall request, to obtain or maintain any such registration. To the extent
the Licensed Marks or new Trademark Rights are not the subject of federal or foreign registrations
as of the Effective Date, Licensee shall bear the cost of obtaining or maintaining same if Licensor
decides to seek registration.

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     3.4     Modifications to or Derivative Works of the Licensed Copyrighted Works. Except as
expressly permitted under this Agreement, Licensee shall not itself develop or use any modified or
derivative works of the Licensed Copyrighted Works. Notwithstanding any
provision of law that may initially vest ownership of copyrights in modifications or
derivative works of the Licensed Copyrighted Works in Licensee or a third party that Licensee may
engage in connection therewith, Licensor and Licensee hereby expressly agree that Licensor shall be
considered the author and owner of the copyrights in the Licensed Copyrighted Works, including any
derivative works or modifications of the original Licensed Copyrighted Works, whether or not any
such modified or derivative works are approved by Licensor for use in connection with the Licensed
Marks and the Business. To the extent permitted by law, the creation of any modifications or
derivative works of the Licensed Copyrighted Works shall be deemed “works made for hire” for
Licensor. Licensee shall execute any documents, including assignments, Licensor may determine it
requires to vest ownership of the Licensed Copyrighted Works, including any modifications or
derivative works of the original Licensed Copyrighted Works, in Licensee. Licensee shall have sole
discretion as to whether to seek registration of the Licensed Copyrighted Works, but in no event
shall Licensee apply for copyright registration of any of such works in its own name. Licensee
shall execute written agreements, in a form acceptable to Licensor, with any independent contractor
Licensee engages in connection with the creation of modifications or derivative works of the
Licensed Copyrighted Works to ensure that such independent contractor is bound by this Section
3.4 and Section 3.7 to the same extent as Licensor. Notwithstanding the foregoing,
Licensee does not assign to Licensor, and Licensee expressly retains the copyrights in all original
content added by Licensee (including any new trademarks of Licensee that are not derivations of,
variations upon, or confusingly similar to, the Licensed Marks) that is incorporated in such
modifications or derivative works of the Licensed Copyrighted Works, to the extent such content
does not bear or display any Licensed Marks.

     3.5     Creation of New Works. Subject to the terms and conditions of this Agreement,
including those set forth in this Section 3.5, Licensee may create new works in the nature
of signage, marketing, advertising or promotional materials, including websites that display the
Licensed Marks (the “New Works”). At least sixty (60) calendar days prior to the
utilization of any of the New Works in connection with Licensee’s exercise of its rights under the
Trademark License, Licensee shall provide a specimen of the New Work to Licensor and specifics as
to the proposed medium or media for the publication, distribution, display, broadcast and/or
transmission of same. Upon Licensor’s written approval, which shall not be unreasonably withheld
or delayed, Licensee may utilize the approved New Work in the approved media to the extent
permitted under the Trademark License. Should Licensee desire to utilize a new medium for the
publication, distribution, display, broadcast or transmission of a New Work previously approved,
Licensee shall give Licensor at least thirty (30) calendar days prior written notice as to the
specifics of the proposed new media. Upon Licensor’s written approval, which shall not be
unreasonably withheld or delayed, Licensee shall be permitted to use the new medium for the New
Work to the extent permitted by the Trademark License.

     3.6     Ownership of New Works. As between Licensor and Licensee, Licensee shall be
deemed the owner of the copyrights in the New Works and shall be permitted to apply for copyright
registration of the New Works. Under no circumstances shall ownership rights extend to the
Licensed Marks and upon termination of Licensee’s rights under the Trademark License,

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Licensee
shall cease all use of the New Works; provided, however, to the extent that the Licensed Marks can
be removed from the New Works, Licensee may continue to use the New Works with the new mark that it
will use for the Business.

     3.7     Appointment as Attorneys-In-Fact. IN THE EVENT THAT LICENSOR IS UNABLE FOR ANY
REASON WHATSOEVER TO SECURE LICENSEE’S SIGNATURE TO ANY ASSIGNMENT DOCUMENT CONTEMPLATED UNDER THIS
SECTION 3 OR TO ANY LAWFUL AND NECESSARY DOCUMENT REQUIRED TO APPLY FOR OR EXECUTE ANY
TRADEMARK OR COPYRIGHT APPLICATIONS WITH RESPECT TO THE LICENSED MARKS OR THE LICENSED COPYRIGHTED
WORKS, LICENSEE HEREBY IRREVOCABLY DESIGNATES AND APPOINTS LICENSOR AND ITS DULY AUTHORIZED
OFFICERS AND AGENTS AS LICENSEE’S AGENTS AND ATTORNEYS-IN-FACT TO ACT FOR AND ON LICENSEE’S BEHALF
AND INSTEAD OF LICENSEE, TO EXECUTE ANY SUCH ASSIGNMENT AND EXECUTE AND FILE ANY SUCH APPLICATION
AND TO DO ALL OTHER LAWFULLY PERMITTED ACTS TO FURTHER THE PROSECUTION AND ISSUANCE OF TRADEMARK OR
COPYRIGHT REGISTRATIONS PERTAINING TO THE LICENSED MARKS OR THE LICENSED COPYRIGHTED WORKS WITH THE
SAME LEGAL FORCE AND EFFECT AS IF EXECUTED BY LICENSEE.

4.     QUALITY CONTROL.

     4.1     Acknowledgment of Quality. The parties acknowledge that the Licensed Marks have
come to signify a high level of quality to the purchasing public and that Licensor’s use of the
Licensed Marks before the Effective Date has been in connection with high quality products and
services. The parties further agree that it is important to both parties and to the purchasing
public that the goodwill in the Licensed Marks be retained and enhanced, and that the sale of
quality products and services under the Licensed Marks is the essence of this Agreement.

     4.2     Acceptable Level of Quality. Licensee agrees to maintain at all times a minimum
level of quality of the products and services sold in connection with the Business operated under
the Licensed Marks (hereinafter referred to as “Acceptable Level of Quality”). This
Acceptable Level of Quality shall be substantially consistent with or superior to, but in any case
must not be inferior in any material respect to, the level of quality maintained by Licensee in the
products and services sold in connection with the Business as Licensor’s wholly owned subsidiary
prior to the separation. Licensee also agrees as part of the Acceptable Level of Quality that the
products and services sold in connection with the Business shall be produced, packaged, labeled,
promoted, sold, distributed and provided in accordance with all applicable foreign, federal, state
and local laws, and governmental orders and regulations as they all may be in effect from time to
time, and that the policy of sale, distribution and exploitation by Licensee shall in no manner
reflect adversely upon the Licensed Trademarks. Licensee shall have a continuing obligation to
immediately notify Licensor within three (3) business days of any conflict of which it becomes

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aware between any requirement of Licensor, and applicable foreign, federal, state and local laws,
and governmental orders and regulations as may be in effect from time to time. Licensee shall be
responsible for modifying any Licensed Copyrighted Works (including the costs of any such
modifications) as may be required to comply with applicable foreign, federal, state and local laws,
and governmental orders and regulations or with the terms of this Agreement. Any such modification
shall be made in accordance with Section 2.4; provided that Licensor agrees to provide as
soon as reasonably practicable any approval that is necessary to authorize Licensee to modify any
Licensed Copyrighted Works as may be required to comply with applicable foreign, federal, state and
local laws, and governmental orders and regulations. Licensee shall have a
further continuing obligation to notify Licensor immediately of any inquiry, investigation,
inspection or any other action by any government body or unit thereof, with respect to the
production, packaging, promotion, sale or distribution of the products and services sold in
connection with the Business by Licensee (or any Permitted Third Party Provider) and the results
thereof, or by any of Licensee’s customers.

     4.3     Inspection of Premises and Licensed Products. Licensor, or its designated
representatives, shall have the right, at any time upon reasonable notice to Licensee, to conduct
during regular business hours an examination of the products and services sold in connection with
the Business offered by Licensee under the Licensed Marks and to inspect and review during regular
business hours the business locations of Licensee and any Permitted Third Party Provider, including
all manufacturing, packaging, distribution, storage facilities and the like, for the purpose of
assuring adherence to the Acceptable Level of Quality, proper use of the Licensed Marks, and
compliance with the terms of this Agreement. Licensee and any Permitted Third Party Provider shall
comply with all of Licensor’s reasonable requests directed to the condition of or conduct of
activities at these business locations that may, in Licensor’s reasonable business judgment, affect
the quality of the products and services offered in connection with the Business and maintenance of
an Acceptable Level of Quality. If at any time, under any circumstances, Licensor determines that
the products and services offered in connection with the Business fail to be of an Acceptable Level
of Quality, Licensor shall so notify Licensee. Licensee and any Permitted Third Party Provider
shall immediately make such changes as are required to obtain an Acceptable Level of Quality.

     4.4     Provision of Samples. Licensee agrees to furnish to Licensor, or Licensor’s
designated representative, samples of Licensee’s uses of the Licensed Marks, including product,
packaging, labels, signage and all forms of advertising, promotional, and marketing materials, as
Licensor may request at any time, for the purpose of inspecting to ensure that these uses are of an
Acceptable Level of Quality and have been approved by Licensor for use with the Licensed Marks.
Licensee agrees to work promptly to correct or remedy uses of the Licensed Marks which may, for any
reason, fail in the judgment of Licensor to meet the Acceptable Level of Quality imposed by
Licensor, or to violate the terms of this Agreement.

     4.5     Maintenance of Reputation and Goodwill. Licensee agrees that neither Licensee nor
any Permitted Third Party Provider who is not an Affiliate of Licensor nor any other person or
entity which controls, is controlled by, or is under common control with either Licensee or any
Permitted Third Party Manufacturer who is not an Affiliate of Licensor, shall, during the Term or
thereafter, misuse the Licensed Marks or the Trademark Rights, take any action that would bring any
of them into public disrepute, or take any action that would reasonably be expected to destroy or
diminish Licensor’s ownership, value or goodwill in the Licensed Marks, the Licensed Copyrighted
Works or the Trademark Rights.

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	5.	 	OTHER CONDITIONS APPLICABLE TO LICENSED MARKS AND LICENSED COPYRIGHTED WORKS.

     5.1     In connection with any and all of its uses of the Licensed Marks, Licensee agrees to
identify the licensed use under this Agreement and the proprietary rights of Licensor. Examples of
such notices include “CLEAR CHANNEL is a registered mark of Clear Channel
Identity, L.P.” and “CLEAR CHANNEL is a registered mark used by CCE Spinco, Inc. under license
from Clear Channel Identity, L.P.”

     5.2     In connection with its use of any of the Licensed Marks, Licensee agrees to use
commercially reasonable efforts to make proper use of the “®” symbol or other proper notice to
indicate a registered mark, and the “TM” symbol to indicate an unregistered mark in which Licensor
may claim rights and/or which is the subject of a state registration. Upon receiving notice from
Licensor that Licensee’s use of a registration notice or “TM” symbol is incorrect or otherwise
deemed unacceptable, Licensee shall promptly modify such uses to obviate Licensor’s objections.
Licensor shall use commercially reasonable efforts to include a legally sufficient copyright notice
on the Licensed Copyrighted Works, including any modification or derivative works of the original
Licensed Copyrighted Works. Licensee shall comply with all of Licensor’s requests concerning the
copyright notice for the Licensed Copyrighted Works.

6.     ACKNOWLEDGMENT OF RIGHTS; CESSATION OF USE.

     6.1     Goodwill. Licensee acknowledges that all goodwill accruing to Licensee’s use of
the Licensed Marks and/or Trademark Rights shall inure to the benefit of Licensor.

     6.2     Acknowledgment of Licensor’s Ownership; Cessation of Use. Licensee expressly
recognizes and acknowledges that the use of the Licensed Marks or Licensed Copyrighted Works shall
not confer upon Licensee any intellectual property or other proprietary rights. Upon expiration or
upon termination of this Agreement, the Trademark License and/or the Copyright License for any
reason, Licensee shall immediately cease all use of the Licensed Marks, the Licensed Copyrighted
Works and the New Works (except as expressly permitted in this Agreement). Licensee further agrees
that, at no time after the expiration or termination of its rights to use the Licensed Marks
pursuant to this Agreement, will it make any further use of the Licensed Marks or any other
designation, symbol, design, emblem, mark, or name similar to the Licensed Marks even if Licensor
does not thereafter use the Licensed Marks, either itself or through another authorized party.

     6.3     Agreement Not to Contest. Licensee shall not question, contest or challenge the
title or ownership by Licensor of the Licensed Marks or the Licensed Copyrighted Works during the
Term or thereafter. Licensee will claim no right, title or interest in the Licensed Marks or any
other designation, symbol, design, emblem, mark, or name similar thereto or the Licensed
Copyrighted Works except the right to use the same pursuant to the terms, provisions and conditions
of this Agreement, and will not seek during the Term or thereafter to register the same in any
jurisdiction or before any agency, regulatory body, or official entity.

     6.4     Registration of Domain Names. Licensee agrees that neither Licensee nor any other
person or entity which controls, is controlled by, or is under common control with Licensee

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shall
during the Term or thereafter register or use any domain name that incorporates the Licensed Marks,
or any formative of the Licensed Mark, or any confusingly similar mark, whether in a top level
domain name or secondary domain name, or as part of any other uniform resource locator (URL)
address.

     6.5     Licensor’s Right to Protect Trademarks and Copyrights. Nothing in this Agreement
shall be construed to bar Licensor from protecting its right to the exclusive use of its
trademarks, service marks, names or copyrights against infringement thereof by any party or
parties, including Licensee (in the case of its use of any of the foregoing other than pursuant to
the Trademark License or the Copyright License), either during the Term or thereafter.

7.     POLICING OF TRADEMARK RIGHTS AND COPYRIGHTS.

     7.1     Duty to Notify of Infringement. Licensee shall promptly notify Licensor in
writing in the event it becomes aware of any third party infringing, misusing, or otherwise
violating any of Licensor’s rights in the Licensed Marks or the Licensed Copyrighted Works, or who
Licensee believes is, or may be infringing, diluting, or otherwise derogating the Licensor’s rights
in the Licensed Marks or the Licensed Copyrighted Works.

     7.2     Enforcement Action by Licensor. Licensor may, at its sole discretion, take action
against such third party to enforce its interest in the Licensed Marks and the Licensed Copyrighted
Works, and in such event shall be entitled to retain all monetary recovery from any such third
party by way of judgment, settlement, or otherwise. In the event Licensor elects or takes
enforcement action, Licensee agrees to cooperate promptly and fully with any such effort, at
Licensee’s expense.

8.     CONFIDENTIALITY.

     8.1     Each of Licensor and Licensee (the “Receiving Party”), on behalf of itself, and on
behalf of its Affiliates, agrees to maintain the confidentiality of all data and other proprietary
information concerning the other party (the “Disclosing Party”) and/or the Disclosing
Party’s Affiliates that may be made available or disclosed to it during the Term (collectively, the
“Confidential Information”); provided that Confidential Information will not include any
information that: (a) is or becomes generally available to the public other than as a result of a
breach of this Agreement by the Receiving Party or its Affiliates; (b) was available to the
Receiving Party on a non-confidential basis prior to its disclosure to the Receiving Party by the
Disclosing Party; (c) becomes available to the Receiving Party on a non-confidential basis from a
source other than the Disclosing Party who the Receiving Party reasonably believes is not bound by
a legal or contractual obligation not to disclose such Confidential Information; or (d) was
independently developed by the Receiving Party without use of or reference to the Confidential
Information. Without limiting the foregoing, Licensor and Licensee will utilize the same methods
and practices in the protection of the Confidential Information that each utilizes in protecting
its own confidential information. Each of Licensor and Licensee, in its capacity as a Receiving
Party, agrees that it will not disclose the Confidential Information of the Disclosing Party
without the prior written consent of the Disclosing Party, except for disclosures (a) that may be
required by applicable law, rule or regulation, (b) that may be required by the Receiving Party to
enforce the rights of the Receiving Party under this Agreement, and (c) to the Receiving Party’s

11

 

Affiliates and other representatives and agents that the Receiving Party reasonably believes need
to know such Confidential Information to perform obligations hereunder. Each of Licensor and
Licensee, in its capacity as a Receiving Party, will be responsible for any breach of this
Section 8.1 by its Affiliates, representatives and agents. Before any disclosure is made
pursuant to applicable law, rule or regulation, the party with the disclosure requirement will, if
permitted by applicable law, rule or regulation, give advance written notice of such
disclosure to the non-disclosing party so that such non-disclosing party may seek a protective
order against such disclosure. In the absence or unavailability of any such protective order, the
party with the disclosure requirement hereby agrees to take all reasonable and lawful actions to
seek confidential treatment for such disclosure and, to the extent practicable, to minimize the
extent of such disclosure. The provisions of this Section 8.1 shall survive expiration or
termination of this Agreement for any reason and shall remain in full force and effect in
accordance with its terms, without modification, limitation or impairment of any kind for a period
of two (2) years following such expiration or termination.

9.     ASSIGNMENT AND SUBLICENSE.

     9.1     Restriction on Assignment and Sublicense. Except as otherwise expressly set forth
herein, neither this Agreement nor any of the rights, interests or obligations hereunder may be
assigned, transferred, conveyed or delegated by Licensee in any manner (whether by operation of law
pursuant to a change of control or otherwise) without the prior written consent of Licensor, and
any purported assignment, transfer, conveyance or delegation in violation hereof will be null and
void, provided that Licensee may assign this Agreement and its rights and obligations hereunder to
any direct successor to all or substantially all of the Business. This Agreement is not intended
to confer any rights or benefits on any person or entity other than the parties hereto, except as
expressly provided in Section 10.1. Licensee shall not sublicense any of its rights under
this Agreement without the express prior written consent of Licensor, which shall be solely within
Licensor’s discretion and subject to Licensee’s sublicensee’s express written agreement to abide by
and comply with all of the terms and conditions of this Agreement. Licensor may freely transfer
this Agreement and its rights or obligations hereunder or the Licensed Marks or Licensed
Copyrighted Works, subject only to Licensee’s rights under this Agreement.

     9.2     Continuance of Obligations. Any assignment or sublicense of rights of Licensee
under this Agreement, even with the prior consent of Licensor, shall not operate to release, limit,
impair or suspend any of the obligations of Licensee under this Agreement.

10.     WARRANTY DISCLAIMER/INDEMNITY/HOLD HARMLESS.

     10.1     Licensee’s Indemnification Obligation. Regardless of any inspections conducted
by or consents granted by Licensor and regardless of compliance by Licensee (or any Permitted Third
Party Provider) with any standards promulgated hereunder, Licensee agrees to indemnify, defend and
hold harmless Licensor, its Affiliates (including parent entities), and their respective
stockholders, directors, officers, employees, agents and assignees from and against any and all
claims, demands, causes of action, damages, losses, liabilities, judgments, costs, fines,
penalties, obligations, together with all reasonable costs and expenses incurred in connection with
the foregoing (including, without limitation, court costs, litigation expenses and reasonable
attorneys fees) (“Damages”) that any of them may suffer or incur (including pursuant to

12

 

judgment or settlement) as a result of or relating to (a) Licensee’s use of the Licensed Marks or
the Licensed Copyrighted Works, (b) Licensee’s breach of any of the terms of this Agreement, and
(c) the activities or omissions of Licensee or any of its stockholders, directors, officers,
employees, agents and assignees; provided, however, that Licensor shall not be entitled to
indemnification
hereunder to the extent that the Damages being sought were caused by any breach of a
representation or warranty of Licensor hereunder or act or omission of Licensor. If in the
reasonable good faith judgment of Licensor, the Licensee fails to undertake and continue the
defense of any of the foregoing, Licensor shall have the right (but not obligation) to make and
continue such defense as it considers appropriate and to settle the underlying matter at the
expense of Licensee. Nothing herein shall prevent Licensor from defending, if it so desires in its
own discretion, any matter at its own expense through its own counsel, notwithstanding that the
defense thereof may have been undertaken by Licensee.

     10.2     Warranty. Licensor represents and warrants that it has full right and
authority to grant the licenses granted to Licensee hereunder.

     10.3     Warranty Disclaimer. EXCEPTING ONLY THE WARRANTY BY LICENSOR IN
SECTION 10.2, LICENSEE HEREBY EXPRESSLY ACKNOWLEDGES THAT LICENSOR MAKES NO WARRANTIES OF
ANY KIND TO LICENSEE, WHETHER WITH RESPECT TO THE LICENSED MARKS, THE LICENSED COPYRIGHTED WORKS OR
OTHERWISE. EXCEPTING ONLY THE WARRANTY BY LICENSOR IN SECTION 10.2, LICENSOR HEREBY
EXPRESSLY DISCLAIMS ANY WARRANTY OBLIGATION, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

11.     DEFAULT; TERMINATION OF LICENSES.

     11.1     Defaults. For purposes of this Agreement, the term “Default” shall mean
and include any of the following:

     (a) the failure of Licensee or a Permitted Third Party Provider to fully and timely
perform any of its obligations under this Agreement (including any failure to maintain an
Acceptable Level of Quality), which failure continues for thirty (30) calendar days, in the
case of a failure to maintain an Acceptable Level of Quality, or for ninety (90) days, in
the case of other failure, after written notice to Licensee from Licensor describing such
failure with reasonable specificity;

     (b) the failure of any of the warranties or representations of Licensee in this
Agreement to be true and correct, which failure is not fully remedied within thirty (30)
calendar days of written notice to Licensee from Licensor describing such failure with
reasonable specificity.

     11.2     This Agreement and the Trademark License and Copyright License granted to Licensee under
this Agreement, together with any and all rights of Licensee or any of its assigns or sublicensees,
shall terminate upon the first to occur of the following:

     (a) Expiration of the Term;

13

 

     (b) the date specified for termination in a written notice by Licensee to Licensor;

     (c) the date specified for termination in a written notice by Licensor to Licensee
after the occurrence of the Default;

     (d) (i) Licensee files a petition for bankruptcy or is otherwise adjudicated bankrupt,
(ii) a petition for bankruptcy is filed against Licensee and such petition is not dismissed
within ninety (90) calendar days, or (iii) Licensee becomes insolvent, discontinues its
business or voluntarily submits to, or is ordered by a bankruptcy court to undergo,
liquidation pursuant to Chapter 7 of the United States Bankruptcy Code (or any successor
thereto);

     (e) any assignment for the benefit of creditors of Licensee; or

     (f) any attachment, execution of judgment or process against any of Licensee’s rights
under the Trademark License, the Copyright License or otherwise under this Agreement, unless
satisfied or released within sixty (60) calendar days.

     11.3     Additional Requirements Upon Expiration or Termination. Upon termination or
expiration of this Agreement for any reason, all rights granted to Licensee hereunder shall cease,
including the Trademark License and the Copyright License.

     (a) In addition to requirements upon expiration or termination set forth elsewhere in
this Agreement, within ten (10) calendar days of termination or expiration of this Agreement
for any reason, Licensee shall return or destroy, all materials (including, without
limitation, product, packaging, labels, signage, marketing, advertising or promotional
materials) pertaining to use of the Licensed Marks and the Licensed Copyrighted Works that
are in Licensee’s possession (or in the possession of any third party over which Licensee
maintains control with respect to possession of such materials, including any Permitted
Third Party Provider).

     (b) Upon termination or expiration of this Agreement for any reason, Licensee shall not
operate its business in any manner which could suggest to the public that such license is
still in force, or that any relationship exists between Licensor and Licensee. Without
limitation, it is understood that this Section 11.3(b) shall require Licensee to
“de-identify” its facilities, products, services and materials so as to remove any
references to any of the Licensed Marks, including from its signage and all advertising,
marketing, packaging and promotional materials, and to change the overall appearance of any
location to eliminate the use of any trademark or trade dress confusingly similar with those
owned by Licensor.

     11.4     Survival. In addition to the survival provisions set forth elsewhere in this
Agreement, the provisions Sections 1, 2.2 (with respect to royalties accruing during the Term),
2.5, 3.1, 3.3, 3.4, 3.7, 4.5, 6, 7.2, 8.1, 9, 10, 11.3, 11.4, 12, 13, 14 and 15 shall survive
expiration or termination of this Agreement for any reason and shall remain in full force and

14

 

effect in accordance with their respective terms, without modification, limitation or impairment of
any kind.

12.     INJUNCTIVE RELIEF; GOVERNING LAW.

     12.1     Injunctive Relief. Licensee acknowledges and agrees that Licensor would be
damaged irreparably in the event any of the provisions of this Agreement are not performed in
accordance with their specific terms or are otherwise breached. Accordingly, Licensee agrees that
Licensor shall be entitled to injunctive relief, in addition to an award for damages to prevent
breaches of the provisions of this Agreement and to enforce specifically (without posting bond)
this Agreement and the terms and provisions hereof.

     12.2     Governing Law.

     (a) THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE SUBSTANTIVE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAW
RULE OR PRINCIPLE THAT MIGHT RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

     (b) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO
SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS AND OF THE UNITED
STATES OF AMERICA LOCATED IN THE STATE OF DELAWARE, FOR ANY LITIGATION, CLAIM OR DISPUTE
UNDER THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND AGREES NOT TO COMMENCE
ANY LITIGATION, CLAIM OR DISPUTE RELATING HERETO EXCEPT IN SUCH COURTS); PROVIDED, THAT THIS
SECTION 12.2(b) SHALL NOT PRECLUDE ANY PARTY TO THIS AGREEMENT FROM COMMENCING
LITIGATION, CLAIM OR DISPUTE IN ANOTHER JURISDICTION TO SECURE ENFORCEMENT OF ANY JUDGMENT
OR AWARD OBTAINED IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT, INCLUDING AN AWARD OF
SPECIFIC PERFORMANCE. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY LITIGATION, CLAIM OR DISPUTE ARISING OUT
OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN THE COURTS OF THE STATE OF
TEXAS OR THE UNITED STATES OF AMERICA LOCATED IN TEXAS, HEREBY FURTHER IRREVOCABLY AND
UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

13.     STATUS OF THE PARTIES.

     13.1     Employment/Partnership Issues. This Agreement does not create, is not intended
to create, and shall not be interpreted or construed as creating a partnership, joint venture,

15

 

agency, employment, master and servant, or similar relationship between Licensor and Licensee, and
no representation to the contrary shall be binding upon either party.

14.     NOTICES.

     All notices and other communications under this Agreement must be in writing and will be
deemed given (a) when delivered personally, (b) on the fifth business day after being mailed by
certified mail, return receipt requested, (c) the next business day after delivery to a recognized
overnight courier or (d) upon transmission and receipt by the facsimile operator of confirmation of
successful transmission, if sent by facsimile, to the parties at the following addresses or
facsimile numbers (or to such other address or facsimile number as such party may have specified by
notice given to the other party pursuant to this provision):

If to Licensor, to:

Clear Channel Identity, L.P.

c/o Clear Channel Communications, Inc.

200 E. Basse Road

San Antonio, TX 78209

Attn: Chief Executive Officer

Facsimile: (210) 822-2299

If to Licensee, to:

CCE Spinco, Inc.

9348 Civic Center Drive, 4th Floor

Beverly Hills, CA 90210

Attn: Chief Executive Officer

Facsimile: (310) 867-7051

15.     MISCELLANEOUS.

     15.1     Attorneys’ Fees and Costs. If attorneys’ fees or other costs are incurred to
secure performance of any obligations hereunder, or to establish damages for the breach thereof or
to obtain any other appropriate relief, whether by way of prosecution or defense, the Prevailing
Party (as defined below) will be entitled to recover reasonable attorneys’ fees and costs incurred
in connection therewith. A party will be considered the “Prevailing Party” if: (a) it
initiated the litigation and substantially obtained the relief it sought, either through a judgment
or the losing party’s voluntary action before trial or judgment; (b) the other party withdraws its
action without substantially obtaining the relief it sought; or (c) it did not initiate the
litigation and judgment is entered into for any party, but without substantially granting the
relief sought by the initiating party or granting more substantial relief to the non-initiating
party with respect to any counterclaim asserted by the non-initiating party in connection with such
litigation.

     15.2     Counterparts. This Agreement may be executed in one or more counterparts
(including by facsimile or portable document format (pdf)) for the convenience of the parties
hereto, each of which will be deemed an original, but all of which together will constitute one and
the same instrument. No signature page to this Agreement evidencing a party’s execution hereof

16

 

will be deemed to be delivered by such party to any other party hereto until such delivering party
has received signature pages from all parties signatory to this Agreement.

     15.3     Headings. The article and section headings contained in this Agreement are
solely for the purpose of reference, are not part of the agreement of the parties and will not in
any way affect the meaning or interpretation of this Agreement.

     15.4     Severability. The invalidity or unenforceability of any provision of this
Agreement will not affect the validity or enforceability of any other provision of this Agreement,
each of which will remain in full force and effect, so long as the economic or legal substance of
the transactions contemplated by this Agreement is not affected in a manner materially adverse to
any party.

     15.5     Binding Effect. This Agreement will be binding upon and inure to the benefit of
the parties and their respective successors and permitted assigns.

     15.6     Entire Agreement. This Agreement and the related documents contained as Exhibits
hereto contain the entire understanding of the parties relating to the subject matter hereof and
supersede all prior written or oral and all contemporaneous oral agreements and understandings
relating to the subject matter hereof. This Agreement may be amended, supplemented or modified,
and any provision hereof may be waived, only by written instrument making specific reference to
this Agreement signed by the party against whom enforcement is sought. The recitals to this
Agreement are hereby incorporated by reference and made a part of this Agreement for all purposes.
To the extent of any conflict between this Agreement and the Master Separation and Distribution
Agreement, the provisions of this Agreement shall control.

     15.7     Construction. Neither this Agreement nor any provision contained in this
Agreement will be interpreted in favor of or against any party hereto because such party or its
legal counsel drafted this Agreement or such provision. Whenever the plural form of a word is used
in this Agreement, that word will include the singular form of that word. Whenever the singular
form of a word is used in this Agreement, that word will include the plural form of that word. The
term “and” shall also mean “or” and “or” shall also mean “and” as the context permits or requires
to provide the broadest meaning or inclusion of the subject. The term “include” or any derivative
of such term does not mean that the items following such term are the only types of such items.

     15.8     Effect of Licensor Approvals. The parties recognize that the need for the
protection of consumers and of the public is of paramount consideration. Accordingly, the parties
agree that in no event will any approval granted by Licensor under this Agreement serve to confirm
Licensee’s compliance with, or absolve or otherwise release Licensee of its responsibilities to
comply with, the provisions of this Agreement, including those relating to Product quality.

     15.9     Time is of the Essence. Time is of the essence of this Agreement.

17

 

     IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed in duplicate
originals by its duly authorized representatives on the respective dates entered below.

	 	 	 	 	 
	 	LICENSOR:

CLEAR CHANNEL IDENTITY, L.P.

By ___, its general partner

 	 
	 	By:  	/s/
Randall Mays	 
	 	 	Name:  
Randall Mays	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	LICENSEE:

CCE SPINCO, INC.

 	 
	 	By:  	/s/
Michael Rapino	 
	 	 	Name:  	Michael Rapino	 
	 	 	Title:  	Chief Executive Officer	 

 

 

	 	 	 	 	 

     The undersigned subsidiaries of CCE Spinco, Inc. have caused this Trademark and Copyright
License Agreement to be executed to be effective on the date first written above by their
respective duly authorized officers for the purpose of agreeing to be bound to this Trademark and
Copyright License Agreement and to be liable, jointly and severally, with CCE Spinco, Inc. to Clear
Channel Communications, Inc. for all covenants, agreements, liabilities and obligations provided
herein or arising hereunder.

	 	 	 	 	 
	 	CCE HOLDCO #1, INC.

 	 
	 	By:  	/s/ Michael Rapino	 
	 	 	Michael Rapino 	 
	 	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	CCE HOLDCO #2, INC.

 	 
	 	By:  	/s/ Michael Rapino	 
	 	 	Michael Rapino 	 
	 	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	SFX ENTERTAINMENT, INC.

 	 
	 	By:  	/s/ Michael Rapino	 
	 	 	Michael Rapino 	 
	 	 	Chief Executive Officer 	 
	 

 

 

 

EXHIBIT A

 

 

Exhibit A

 

EXHIBIT B

Certain Domain Name Registrations

     1.     cc.com

Exhibit B 

 

EXHIBIT C

Royalty Rate

With respect to the period beginning on the Effective Date and ending on June 20, 2006, no
royalties shall accrue or be payable.

With respect to the period beginning on June 21, 2006 and ending on the last day of the Term,
royalties shall accrue at the rate of $100,000 per calendar month or, for any period of less than a
full calendar month, at the rate of $3,300 per day.

Exhibit Cexv10w5

 

Exhibit 10.5

Clear Channel Entertainment

Nonqualified Deferred

Compensation Plan

Effective November 1, 2005

Prepared by

Mercer Human Resource Consulting for

Review by legal counsel

Mercer Human Resource Consulting does not engage in the practice of law. Amendments to this Plan
document should be approved by legal counsel.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I
	 	Purpose and Effective Date

	 	 	1	 
	ARTICLE II
	 	Definitions

	 	 	1	 
	ARTICLE III
	 	Administration

	 	 	9	 
	ARTICLE IV
	 	Claims Procedure

	 	 	12	 
	ARTICLE V
	 	Eligibility and Participation

	 	 	13	 
	ARTICLE VI
	 	Company Matching Contributions and Participant Deferrals

	 	 	14	 
	ARTICLE VII
	 	Maintenance and Investment of Accounts

	 	 	17	 
	ARTICLE VIII
	 	Distributions and Withdrawals

	 	 	20	 
	ARTICLE IX
	 	Beneficiary Designation

	 	 	23	 
	ARTICLE X
	 	Amendment and Termination of Plan

	 	 	24	 
	ARTICLE XI
	 	Nature of Company’s Obligation

	 	 	25	 
	ARTICLE XII
	 	Miscellaneous

	 	 	26	 

 

 

ARTICLE I

PURPOSE AND EFFECTIVE DATE

Section 1.01

     Title.
This Plan shall be known as the Clear Channel Entertainment Nonqualified
Deferred Compensation Plan (hereinafter referred to as the “Plan”).

Section 1.02

     Purpose. The purpose of the Plan is to aid SFX Entertainment, Inc. d/b/a Clear Channel
Entertainment and its affiliates and subsidiaries in retaining and attracting executive Employees
and members of the Board of Directors by providing them with tax deferred savings opportunities.
The Plan provides to Board members and a select group of management and highly compensated
employees of SFX Entertainment, Inc. d/b/a Clear Channel Entertainment with the opportunity to
elect to defer receipt of specified portions of compensation, and to have these deferred amounts
treated as if invested in specified hypothetical investment benchmarks. It is the intention of the
Company that the Plan meet all of the requirements necessary to qualify as a nonqualified,
unfunded, unsecured plan of deferred compensation within the meaning of ERISA Sections 201(2),
301(a)(3) and 401(a)(1), and all Plan provisions shall be interpreted accordingly. Further, it is
the intention of the Company for the Plan to meet all of the requirements of Code Section 409A and
any regulations or guidance promulgated thereunder so that all amounts deferred by or on behalf of
a Participant hereunder shall not be includible in the income of such Participant until distributed
to the Participant.

Section 1.03

     Plan History and Effective Date. This Plan is a successor to the Clear Channel
Communications, Inc. Nonqualified Deferred Compensation Plan (herein referred to as the Prior Plan)
and is a result of the spin-off of the accounts of the Transferred Participants (as defined herein)
from the Prior Plan as a separate plan as of November 1, 2005.

     For purposes of this Plan, any Participation Agreements, Election Forms or Beneficiary
Designations completed or made by the Transferred Participants (as defined herein) shall be deemed
to have been made under this Plan.

     The original effective date of the Prior Plan was October 1, 2001 and the effective date of
the restatement of the Prior Plan was January 1, 2005. The effective date of this Plan is November
1, 2005.

 

 

ARTICLE II

DEFINITIONS

For the purposes of this Plan, the following words and phrases shall have the meanings indicated,
unless the context clearly indicates otherwise:

Section 2.01

     Administrative Committee. Prior to the closing date of Clear Channel Communications,
Inc.’s distribution to its shareholders of all of the outstanding capital stock of the Company,
“Administrative Committee” means the Clear Channel Communications, Inc. Retirement Benefits
Committee, as appointed by the board of directors of Clear Channel Communications, Inc. On or
after that date, “Administrative Committee” means the Clear Channel Entertainment, Inc. Retirement
Benefits Committee, as appointed by the Board.

Section 2.02

     Base Salary and Commission. “Base Salary and Commission” means all cash compensation
other than Bonuses paid by the Company to or for the benefit of a Participant for services rendered
or labor performed while a Participant, including but not limited to base salary and commission,
and includes such cash compensation a Participant could have received in lieu of Deferrals
hereunder and Employee contributions made on the Participant’s behalf to any qualified plan
maintained by the Company or to any cafeteria plan maintained by the Company under Section 125 of
the Code; provided, however, that “Base Salary and Commission” shall not include any amounts paid
to a Participant as severance under any Company severance agreement, plan or policy or amounts of
cash compensation earned prior to the Participant’s Termination of Employment but paid to a
Participant more than 30 days following such Participant’s Termination of Employment or Retirement.

Section 2.03

     Beneficiary. “Beneficiary” means the person, persons or entity designated by a
Participant, pursuant to Article IX hereof, to receive such payments as may become payable
hereunder after the death of the Participant.

Section 2.04

     Board. “Board” means the Board of Directors of SFX Entertainment, Inc. d/b/a Clear
Channel Entertainment.

Section 2.05

     Bonus or Bonuses. “Bonus” or “Bonuses” means the cash compensation paid by the Company
to or for the benefit of a Participant for services rendered or labor performed while a Participant
under a bonus arrangement, increased by Deferrals hereunder and Employee contributions made on his
or her behalf to any qualified plan maintained by the Company or to any cafeteria plan maintained
by the Company under Section 125 of the Code excluding amounts paid after Termination of Employment
or Retirement.

Page 2

 

Section 2.06

     Change of Control. For purposes of this Plan, a “Change of Control” means the
occurrence of one of the following events:

     (a) Any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of
1934 (the “Exchange Act”) and as used in Section 13(d)(3) and 14(d)(2) of the Exchange Act) is or
becomes, after the Effective Date, a “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the
combined voting power of the Company’s then outstanding securities eligible to vote for the
election of the Board (the “Company Voting Securities”); provided however, that an event described
in this paragraph (a) shall not be deemed to be a Change of Control if any of the following becomes
such a “beneficial owner”: (i) the Company or any majority-owned subsidiary (provided, that this
exclusion applies solely to the ownership levels of the Company or the majority-owned subsidiary),
(ii) any tax-qualified, broad-based employee benefit plan sponsored or maintained by the Company or
any majority-owned subsidiary, (iii) any underwriter temporarily holding securities pursuant to an
offering of such securities, or (iv) any person pursuant to a Non-Qualifying Transaction as defined
in paragraph (c);

     (b) individuals who, on the Effective Date, constitute the Board (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of the Board, provided that any person
becoming a director subsequent to the Effective Date whose election was approved by a vote of at
least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by
approval of the proxy statement of the Company in which such person is named as a nominee for
director, without objection to such nomination) shall be an Incumbent Director, provided, however,
that no individual initially elected or nominated as a director of the Company as a result of an
actual or threatened election contest with respect to directors or as a result of any other actual
or threatened solicitation of proxies by or on behalf of any person other than the Board shall be
an Incumbent Director;

     (c) the approval by the shareholders of the Company of a merger, consolidation, share exchange
or similar form of transaction involving the Company or any of its subsidiaries, or the sale of all
or substantially all of the Company’s assets (a “Business Transaction”), unless immediately
following such Business Transaction, (i) more than 65% of the total voting power of the entity
resulting from such Business Transaction or the entity acquiring the Company’s assets in such
Business Transaction (the “Surviving Corporation”) is beneficially owned, directly, or indirectly,
by the Company’s shareholders immediately prior to any such Business Transaction, and (ii) no
person (other than the persons set forth in clauses (i), (ii), or (iii) of paragraph (a) above or
any tax -qualified, broad-based employee benefit plan of the Surviving Corporation or its
Affiliates) beneficially owns, directly or indirectly, 25% or more of the total voting power of the
Surviving Corporation (a “Non-Qualifying Transaction”); or

     (d) Board approval of a liquidation or dissolution of the Company.

Section 2.07

     Code. “Code” means the Internal Revenue Code of 1986, as amended. References to any
provision of the Code or regulation (including a proposed regulation) thereunder shall include any
successor provisions or regulations.

Page 3

 

Section 2.08

     Common Stock. “Common Stock” means the common stock of Clear Channel Communications,
Inc., $0.10 par value per share.

Section 2.09

     Company. “Company” means SFX Entertainment, Inc. d/b/a Clear Channel Entertainment and
any subsidiary or affiliated companies or entities authorized by the Board or the Compensation
Committee to participate in the Plan, or any successor entity by operation of law or affirmative
assumption of the Plan, any trust created by the Company for purposes of meeting the Company’s
obligations hereunder, and the obligations of SFX Entertainment, Inc. d/b/a Clear Channel
Entertainment with respect to the Plan.

Section 2.10

     Compensation Committee. Prior to the closing date of Clear Channel Communications,
Inc.’s distribution to its shareholders of all of the outstanding capital stock of the Company,
“Compensation Committee” means the Compensation Committee of the board of directors of Clear
Channel Communications, Inc. On or after that date, “Compensation Committee” means the Compensation
Committee of the Board.

Section 2.11

     Deferral Account. “Deferral Account” means the record of a Participant’s interest in
this Plan represented by Deferrals, with all earnings thereon credited to such Deferrals on behalf
of the Participant under the provisions of this Plan, and all losses, expenses, withdrawals and
distributions thereon debited from such Deferrals. The Deferral Account of a Transferred
Participant shall include the deferral account from the Prior Plan transferred to this Plan.

Section 2.12

     Deferral Period. “Deferral Period” means the period of time specified by a Participant
in a Participation Agreement in accordance with the provisions of the Plan which must elapse prior
to a distribution of the Participant’s Deferral and Matching Contribution Accounts hereunder.

Section 2.13

     Deferrals. “Deferrals” means those portions of a Participant’s Eligible Compensation
which the Participant elects to have withheld on a pre-tax basis from his or her Eligible
Compensation and credited to his or her Deferral Account pursuant to Section 6.02 of the Plan.

Section 2.14

     Designee. “Designee” means the Company’s senior human resources officers or other
individuals to whom the Administrative Committee has delegated the authority to take action under
the Plan. Wherever Administrative Committee is referenced in the Plan, it shall be deemed to also
refer to Designee.

Page 4

 

Section 2.15

     Director. “Director” means a nonemployee member of the Board.

Section 2.16

     Director’s Compensation. “Director’s Compensation” means that cash compensation paid
by the Company to or for the benefit of a Director for services rendered as a Director.

Section 2.17

     Director’s Deferral Election Form. “Director’s Deferral Election Form” means the form
established from time to time by the Compensation Committee that a Director completes and submits
to effect a Deferral hereunder.

Section 2.18

     Disability or Disabled. “Disability” or “Disabled” means a medically determinable
physical or mental impairment of the Participant which can be expected to result in death or can be
expected to last for a continuous period of at least twelve (12) months and for which the
Participant has received income replacement benefits for a period of not less than three months
under the Company’s accident or health plan covering the Employee.

Section 2.19

     Effective Date. “Effective Date” means November 1, 2005, for this successor Plan. The
original effective date of the Prior Plan was October 1, 2001.

Section 2.20

     Election Date. “Election Date” means the date established by the Compensation
Committee as the date on or before which an Eligible Employee or Director must complete and submit
a valid Participation Agreement or Director’s Deferral Election Form, as the case may be. The
applicable Election Date can be no later than the following: (a) 30 days following the Eligible
Employee or Director’s eligibility date as described in Section 5.01 or (b) December 15th prior to
the next Plan Year if (a) above does not apply.

     Notwithstanding the foregoing, a Transferred Participant shall not have an Election Date as of
the Effective Date.

Section 2.21

     Eligible Compensation. “Eligible Compensation” means any Base Salary and Commission,
Bonus, and Director’s Compensation, payable to a Participant during a Plan Year.

Section 2.22

     Eligible Employee. “Eligible Employee” means an Employee who is eligible to
participate in the Plan and is a member of a select group of management or highly compensated
employees at the time of electing to make a Deferral.

Section 2.23

     Employee. “Employee” means a person who is employed in the capacity of an employee of
the Company.

Page 5

 

Section 2.24

     ERISA. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

Section 2.25

     Fair Market Value. “Fair Market Value,” with respect to a share of Common Stock as of
any date, means (a) the closing sales price of the Common Stock on the New York Stock Exchange or
on any such other exchange on which the Common Stock is traded on such date, or in the absence of
reported sales on such date, the closing sales price on the immediately preceding date on which
sales were reported, or (b) in the event there is no public market for the Common Stock on such
date, the fair market value as determined in good faith by the Compensation Committee in its sole
and absolute discretion.

Section 2.26

     Hypothetical Investment Benchmark. “Hypothetical Investment Benchmark” means the
phantom investment benchmarks determined by reference to one or more of the investment alternatives
designated by a Participant in accordance with Article VII of this Plan. The amount of interest
credited on each Valuation Date (or deducted in the case of a loss by the designated investment
alternatives) shall equal the interest, dividends, increase or decrease in market value and other
earnings or losses that would have been credited to a Participant’s Deferral or Matching
Contribution Account if the amounts in the Deferral or Matching Contribution Account had actually
been invested in the designated investment alternative(s).

Section 2.27

     Matching Contribution. “Matching Contribution” means the amount of matching
contribution, if any, that the Company may make to a Participant’s Matching Contribution Account
pursuant to Section 6.01 of the Plan, at the sole and absolute discretion of the Compensation
Committee.

Section 2.28

     Matching Contribution Account. ”Matching Contribution Account” means the record of a
Participant’s interest in this Plan represented by the Matching Contributions, with all earnings
thereon credited to such Matching Contributions on behalf of the Participant under the provisions
of this Plan, and all losses, expenses, withdrawals and distributions thereon debited from such
Matching Contributions. The Matching Contribution Account of a Transferred Participant shall
include the matching contribution account transferred from the Prior Plan to this Plan.

Section 2.29

     Participant. “Participant” means any Eligible Employee or Director who has elected to
participate by properly submitting a completed Participation Agreement or Director’s Deferral
Election Form as provided in Article VI of the Plan. An individual will remain a Participant until
the distribution of the entire balance, if any, of such Participant’s Deferral and Matching
Contribution Account(s), even if such Participant is no longer an Eligible Employee and cannot make
future Deferrals. A Participant shall include any Transferred Participant.

Page 6

 

Section 2.30

     Participation Agreement. “Participation Agreement” means an Eligible Employee’s
election, made in accordance with procedures established by the Compensation Committee, to effect a
Deferral hereunder. A Transferred Participant’s participation agreement under the Prior Plan for
the 2005 calendar year shall be deemed to be a Participation Agreement under this Plan for the
remainder of the 2005 calendar year occurring on or after the Effective Date of this Plan, with
respect to deferral elections for the 2005 calendar year for Base Salary and Commissions and for
deferral elections for the 2005 calendar year for Bonuses paid in both the 2005 and 2006 calendar
years.

Section 2.31

     Plan Year. “Plan Year” means a twelve-month period beginning January 1 and ending the
following December 31; provided that the first Plan Year for this successor Plan shall be a short
Plan Year from November 1, 2005 through December 31, 2005.

Section 2.32

     Prior Plan. “Prior Plan” means the Clear Channel Communications, Inc. Nonqualified
Deferred Compensation Plan, as in force and effect immediately prior to the Effective Date.

Section 2.34

     Retirement. In the case of an Eligible Employee, “Retirement” means the Termination of
Employment of a Participant from the employ or service of the Company or any of its subsidiaries or
affiliates in accordance with the terms of the applicable Company retirement plan, or if a
Participant is not covered by such a plan, the Participant’s Termination of Employment on or after
the earliest to occur of the following:

	 	(a)	 	the attainment by the Participant of age 65, or
	 
	 	(b)	 	the attainment by the Participant of age 55 and ten years of
service (in accordance with the method of determining years of service adopted
by the Company).

In the case of a Director, “Retirement” means the termination of a Director’s service as a member
of the Board.

Section 2.35

     Share Units. “Share Units” means units of deemed investment in shares of Common Stock
in accordance with Section 7.05(d) of the Plan.

Section 2.36

     Specific Year Deferral. “Specific Year Deferral” means a Deferral or Matching
Contribution which has a Deferral Period of a specific number of full calendar years equal to or
greater than three (3) as elected by a Participant in accordance with a Participation Agreement or
a Director’s Deferral Election Form.

Page 7

 

Section 2.37

     Termination of Employment. “Termination of Employment” means the cessation of a
Participant’s services as an Employee of the Company, or any subsidiary or affiliate thereof, for
any reason other than Retirement; provided, however, that transfer of employment from the Company,
or from one affiliate or subsidiary of the Company, to another affiliate or subsidiary of the
Company, or to the Company, will not constitute a Termination of Employment for purposes of this
Plan. For purposes of this Plan, a Disabled Participant shall be deemed to have terminated
employment.

Section 2.38

     Transferred Participant. “Transferred Participant” means any participant in the Prior
Plan who was a “transferred employee” or “former Entertainment Employee” as of November 1, 2005 as
those terms are defined in the Employee Matters Agreement entered into between Clear Channel
Communications, Inc. and CCE SPINCO, Inc.

Section 2.39

     Valuation Date. “Valuation Date” means each business day of the Plan Year.

Page 8

 

ARTICLE III

ADMINISTRATION

Section 3.01

     Compensation Committee. This Plan shall be administered by the Compensation Committee.
A majority of the members of the Compensation Committee shall constitute a quorum for the
transaction of business. All resolutions or other actions taken by the Compensation Committee shall
be by a vote of a majority of its members present at any meeting or, without a meeting, by an
instrument in writing signed by all its members. Members of the Compensation Committee may
participate in a meeting of such committee by means of a conference telephone or similar
communications equipment that enables all persons participating in the meeting to hear each other,
and such participation in a meeting shall constitute presence in person at the meeting and waiver
of notice of such meeting. Any resolutions adopted or actions taken at such meetings shall be
evidenced in writing.

Section 3.02

     Administration of the Plan. The Compensation Committee shall be responsible for the
administration of this Plan and shall have all powers necessary to administer this Plan, including
discretionary authority to determine eligibility for benefits and to decide claims under the terms
of this Plan. Subject to the terms of the Plan, the Compensation Committee may from time to time
establish rules, forms and procedures for the administration of the Plan, and except as herein
otherwise expressly provided, it shall have the exclusive right and discretion to interpret the
Plan and to decide any and all matters arising thereunder or in connection with the administration
and operation of the Plan. All rules, interpretations, decisions, actions and records of the
Compensation Committee regarding or arising in connection with the administration of the Plan shall
be conclusive and binding on the Company, Participants and Beneficiaries and all persons having or
claiming to have any right or interest in or under the Plan, and cannot be overruled by a court of
law unless arbitrary or capricious.

Section 3.03

     Delegation. The Compensation Committee may delegate to the Administrative Committee
responsibility for performing certain administrative and ministerial functions under the Plan. The
Administrative Committee may determine in the first instance issues related to eligibility,
Hypothetical Investment Benchmarks, determination of Deferral and Matching Contribution Account
balances, crediting of hypothetical earnings and debiting of hypothetical losses and distributions,
in-service withdrawals, deferral elections, claims for benefits and any other duties concerning the
day-to-day operation of this Plan. The Compensation Committee shall have discretion to delegate to
the Administrative Committee such additional duties as it may determine. The Administrative
Committee may retain and supervise outside providers, third party administrators, record keepers
and professionals (including in-house professionals) to perform any or all of the duties delegated
to it hereunder.

Page 9

 

Section 3.04

     Limitation of Liability. The members of the Compensation Committee and the
Administrative Committee and the officers and Directors of the Company shall be entitled to rely on
all certificates and reports made by any duly appointed accountants and on all opinions given by
any duly appointed legal counsel. None of the members of the Compensation Committee, nor any member
of the Board or Administrative Committee shall be liable for any act or action hereunder, whether
of omission or commission, taken or failed to be taken by any other member or employee or by any
agent to whom duties in connection with the administration of this Plan have been delegated or for
anything done or omitted to be done in connection with this Plan. The Compensation Committee and
the Administrative Committee shall keep records of all of their respective proceedings and the
Administrative Committee shall keep records of all payments made to Participants or Beneficiaries
and payments made for expenses or otherwise.

Section 3.05

     Indemnification. The Company shall, to the fullest extent permitted by law, indemnify
and hold harmless each current and former Director, officer or Employee of the Company (including
the heirs, executors, administrators and other personal representatives of such person), and each
current and former member of the Compensation Committee and Administrative Committee against any
and all expenses (to the extent not indemnified under any liability insurance contract or other
indemnification agreement) which the person incurs on account of any act or failure to act in
connection with the good faith administration of the Plan. Expenses against which such person shall
be indemnified hereunder shall include, without limitation, the amount of any settlement or
judgment, costs, counsel fees, and related charges reasonably incurred by such person in connection
with any threatened, pending or actual suit, action or proceeding (whether civil, criminal,
administrative or investigative in nature or otherwise) in which such person may be involved by
reason of the fact that he or she is or was serving this Plan in any capacity at the request of the
Company, the Board, the Compensation Committee or the Administrative Committee. The foregoing right
of indemnification shall be in addition to any other rights to which any such person may be
entitled as a matter of law, but shall be conditioned upon the person’s notifying the Company of
the claim of liability within 60 days of the notice of that claim and offering the Company the
right to participate in and control the settlement and defense of the claim. The foregoing
provision will not be applicable to any person if the loss, cost, liability or expense is due to
such person’s gross negligence or willful misconduct, or if it affects the person’s own Deferral
and Matching Contribution Accounts.

Section 3.06

     Expenses. Any expense incurred by the Company, the Compensation Committee or the
Administrative Committee relative to the administration of this Plan shall be borne by the Company
and may be deducted from the Deferral and Matching Contribution Accounts of the Participants as
determined by the Compensation Committee in its sole and absolute discretion.

Section 3.07

     FICA and Other Taxes. Under present Federal income tax laws, no portion of a
Participant’s Deferrals will be includable in income for Federal income tax purposes during the
Deferral Period. FICA tax withholding, however, may be required currently on the Deferrals and on
the Matching Contribution, if any. For each Plan Year in which a Deferral is being withheld,

Page 10

 

the Company shall withhold from that portion of the Participant’s compensation which is not
being deferred, the Participant’s share of FICA and any other taxes as required. When any part of
the Deferral or Matching Contribution Account is actually paid to a Participant, such portion shall
be includable in the Participant’s income and Federal, state and local income tax withholding will
be withheld as required. The Company may make necessary arrangements in order to effectuate any
such withholding, including the mandatory withholding of shares of Common Stock which would
otherwise be distributed to a Participant, but in no event should shares be withheld in excess of
the number of whole shares required to be withheld in order to comply with the minimum withholding
requirements.

Page 11

 

ARTICLE IV

CLAIMS PROCEDURE

Section 4.01

     Written Claim. Benefits shall be paid in accordance with the provisions of this Plan.
If a Participant or Beneficiary makes a written request alleging a right to receive payments under
this Plan or alleging a right to receive an adjustment in benefits being paid under this Plan, such
actions shall be treated as a claim for benefits. All claims for benefits under this Plan shall be
mailed or delivered to the Administrative Committee.

Section 4.02

     Denied Claim. If the Administrative Committee determines that any individual who has
claimed a right to receive benefits, or different benefits, under this Plan is not entitled to
receive all or any part of the benefits claimed, the Administrative Committee shall inform the
claimant in writing of such determination and the reasons therefore in terms calculated to be
understood by the claimant. The notice shall be sent within 90 days of the claim unless the
Administrative Committee determines that additional time, not exceeding 90 days, is needed and so
notifies the Participant. The notice shall make specific reference to the pertinent Plan provisions
on which the denial is based, and shall describe any additional material or information that is
necessary. Such notice shall, in addition, inform the claimant of the procedure that the claimant
should follow to take advantage of the review procedures set forth below in the event the claimant
desires to contest the denial of the claim.

Section 4.03

     Review Procedure. The claimant may, within 90 days after the denial of a claim
submitted hereunder, submit in writing to the Administrative Committee a notice that the claimant
contests the denial of his or her claim and desires a further review by the Compensation Committee.
The Compensation Committee shall authorize the claimant to review pertinent documents and submit
issues and comments relating to the claim to the Compensation Committee, and shall review the claim
at its next regularly scheduled meeting.

Section 4.04

     Compensation Committee Review. The Compensation Committee will render a final decision
on behalf of the Company on a claim submitted hereunder and contested with specific reasons
therefore in writing and will transmit it to the claimant within 60 days of the next regularly
scheduled Compensation Committee meeting following written request for review, unless the
Chairperson of the Compensation Committee determines that additional time, not exceeding 60 days,
is needed, and so notifies the Participant.

Page 12

 

ARTICLE V

ELIGIBILITY AND PARTICIPATION

Section 5.01

     Eligibility. Participation in the Plan shall be limited to executives who meet such
eligibility criteria as the Compensation Committee shall establish from time to time, provided,
however, that all Participants must be a member of a select group of management or highly
compensated Employees or a Director of the Company. Such an Eligible Employee or Director shall be
eligible to participate in the Plan as of his eligibility date as described below:

	 	(a)	 	An Eligible Employee’s eligibility date shall be the first of the month
coinciding with or next following three months of employment.
	 
	 	(b)	 	A Director’s eligibility date shall be the first of the month coinciding with
or next following three months after election or appointment as a new Director.

Section 5.02

     Participation. Each Eligible Employee or Director may elect to participate in this
Plan by completing and submitting a Participation Agreement or Directors’ Deferral Election Form,
as applicable, no later than the applicable Election Date.

Section 5.03

     Participation by Transferred Participant. A Transferred Participant shall become a
Participant in this Plan as of the Effective Date.

Page 13

 

ARTICLE VI

COMPANY MATCHING CONTRIBUTIONS AND PARTICIPANT DEFERRALS

Section 6.01

     Matching Contribution. Matching Contributions may be made at the sole discretion of
the Compensation Committee. Any Matching Contribution approved by the Committee will be credited to
the Participant’s Matching Contribution Account as soon as administratively feasible after the end
of the Plan Year to which the Matching Contribution relates. The amount of any Matching
Contribution shall be at the sole and absolute discretion of the Compensation Committee, and may be
equal to the matching contribution the Company would have made to a qualified Company defined
contribution plan based on the Participant’s eligible compensation (as defined by the defined
contribution plan) for such plan’s plan year, if the Participant made a contribution to the defined
contribution plan in the amount of 5% of the Participant’s eligible compensation (as defined by the
defined contribution plan), less the amount equal to the Company’s actual matching contribution to
the defined contribution plan for such plan year. Matching Contributions will be made only to the
extent that the Participant’s aggregate Deferrals hereunder and contributions to a Company defined
contribution plan equal or exceed 5% of eligible compensation under the defined contribution plan
for such Plan Year.

Section 6.02

     Deferral Election. 

     (a) An Eligible Employee or Director may elect to defer a portion of such person’s Eligible
Compensation for a Plan Year for a Deferral Period elected by such Eligible Employee or Director.
An Eligible Employee or Director who desires to make a Deferral will complete and submit a
Participation Agreement or Director’s Deferral Election Form, as the case may be, by the Election
Date pursuant to procedures specified by the Administrative Committee (1) specifying the applicable
percentages of Eligible Compensation to be deferred, the date as of which the amounts to be
deferred will become payable unless otherwise provided in the Plan, and the form in which the
payments of the Deferrals are to be made, and (2) authorizing such Eligible Employee’s or
Director’s Eligible Compensation payable for a Plan Year to be reduced and deferred hereunder.

     (b) A Participant may defer Eligible Compensation for any Plan Year under subsection (a)
hereof, in an amount expressed as whole percentages of his or her Base Salary and Commission, Bonus
and Director’s Compensation as follows:

	 	(1)	 	Base Salary and Commission: not less than 1% nor more than 50%;
	 
	 	(2)	 	Bonus: not less than 1% nor more than 80%; and
	 
	 	(3)	 	Director’s Compensation: up to 100% but not less than 1%;

Page 14

 

provided, however, that the Compensation Committee may, without amending this Plan, determine that
the maximum applicable percentages will be greater or lesser than the percentages set forth herein.

     (c) A Participant may elect Deferral Periods for each Deferral and Matching Contribution,
which shall be the earlier to occur of (1) a Specific Year Deferral, and (2) the period ending upon
the Retirement or earlier Termination of Employment of the Participant. Each such Specific Year
Deferral must be for a minimum of three (3) full calendar years from the end of the Plan Year in
which such a Specific Year Deferral was made.

     (d) A Participant may elect to have a Specific Year Deferral distributed in either a cash lump
sum or in up to five (5) substantially equal annual cash installments regardless of the value of
the Participant’s account balance as of the date of distribution. A Participant may elect to have a
Deferral until Retirement distributed in either a cash lump sum or in up to fifteen (15)
substantially equal annual cash installments; provided, however, that with respect to Deferrals
until Retirement, a Participant must have an account balance equal to or greater than $25,000
thirty (30) days prior to the payment of the first installment in order to receive a distribution
in the form of substantially equal annual cash installments. If said account balance is less than
$25,000, the distribution will be paid in a single cash lump sum at the time the first installment
payment was scheduled to be paid.

Section 6.03

     Election Procedures. Eligible Employees who wish to make a Deferral must do so for
each applicable Plan Year under the terms of the Plan. However, an election to defer until
Retirement will remain in effect until modified or terminated as provided in Section 6.04 hereof.
Future Deferrals will be terminated automatically for any Participant who is deemed by the
Compensation Committee to no longer be eligible for participation in the Plan and there will be no
acceleration of the distribution of such a Participant’s vested account balance as a result of
cessation of eligibility to participate. For purposes of this Article VI, a Participant’s election
made for the Plan Year beginning on or after January 1, 2005 to defer a portion of his or her Bonus
shall apply to the Bonus earned in the following Plan Year and otherwise payable in the second Plan
Year following the year in which the deferral election was made. Consistent with the above, the
Compensation Committee may establish rules and procedures governing when a Deferral will be
effective and what Compensation will be deferred by the Deferral, provided that such rules and
procedures are not more permissive or inconsistent with the terms and provisions of the Plan and
are consistent with the provisions of Code Section 409A and the regulations and guidance
promulgated thereunder.

Section 6.04

     Modification or Revocation of Election by Participant. Subject to the provisions of
this section and Section 6.05, all Deferrals hereunder are irrevocable. A Participant may not
increase the amount of his or her Deferrals during a Plan Year. Elections to increase Deferrals of
future Eligible Compensation must be made between November 15 and December 15 of any year to be
effective on January 1 of the next Plan Year. A Participant may discontinue future Deferrals
during any Plan Year under the Plan by completing and submitting a revised Participation Agreement
or Director’s Deferral Election Form, as the case may be. If such election is made on

Page 15

 

or before the 15th day of any calendar month, discontinuance shall take effect as of the
first day of the following month. If such election is made after the 15th day of any
calendar month, discontinuance shall take effect as of the first day of the second month following
such election. If a Participant discontinues a Base Salary and Commission Deferral during a Plan
Year, he will not be permitted to again elect to make any Base Salary and Commission Deferrals
under the Plan until the beginning of the next Plan Year following the Plan Year in which such
discontinuance was made.

     In accordance with Internal Revenue Service Notice 2005-1, a Participant may cancel his
election to defer any amounts earned during the 2005 calendar year by completing and submitting a
Participation Agreement pursuant to procedures established by the Administrative Committee on or
before December 31, 2005. Any amounts subject to such cancellation notification shall be includible
in the Participant’s income for the calendar year 2005 for any compensation that is not a bonus
deferral and in calendar year 2006 for any bonus deferral earned in 2005 but otherwise payable in
2006.

Section 6.05

     Redeferral Election. Notwithstanding the foregoing, a Participant may extend
the Deferral Period, elect another form of payment and/or, subject to Sections 6.02(c) and (d),
change the number of annual installments (as long as such change does not result in an acceleration
of payments as determined by the Administrative Committee), for previous years’ Deferrals and
Matching Contributions, provided that an amended Participation Agreement or Director’s Deferral
Election Form, as the case may be, is completed and submitted at least twelve (12) months before
the initial Deferral Period (as in effect before such amendment) ends. A Participant may make only
one such redeferral election with respect to each Deferral Period elected by a Participant, and the
revised distribution date may be no less than five (5) full calendar years from the date such
payment otherwise would have been paid. Under no circumstances may a Participant’s Participation
Agreement or Director’s Deferral Election Form be made, modified or revoked retroactively, nor may
a Deferral Period be shortened or reduced.

Section 6.06

     Vesting of Deferral and Matching
Contribution Accounts. A Participant shall be 100% vested at all times in his or her Deferrals
and any accretions thereto by application of the designated Hypothetical Investment Benchmark or
Share Units, and shall vest as to Matching Contributions, if any, in increments of 20% per year
during the first five (5) years of service with the Company, commencing with a Participant’s date
of hire by the Company. All Matching Contributions, if any, shall become fully vested upon a
Participant’s Termination of Employment due to the Participant’s death, Disability or Retirement.

     For purposes of determining a Transferred Participant’s vested status, such Participant shall
be credited with any vesting service under the Prior Plan.

Page 16

 

ARTICLE VII

MAINTENANCE AND INVESTMENT OF ACCOUNTS

Section 7.01

     Deferral Accounts. A Participant’s Deferrals hereunder shall be credited by
the Administrative Committee to the Participant’s Deferral Account, as the case may be, on or
before the 15th business day following the date on which the Participant’s Eligible Compensation
would otherwise have been paid to the Participant had it not been deferred. All amounts credited to
a Participant’s Deferral Account will be treated as a reduction of Eligible Compensation otherwise
payable to such Participant. Distributions and withdrawals pursuant to Article VIII shall be
debited against a Participant’s Deferral Account.

Section 7.02

     Matching Contribution
Accounts. The Company’s Matching Contributions made on behalf of a Participant shall be
credited to the Participant’s Matching Contribution Account in accordance with procedures
established by the Administrative Committee.

Section 7.03

     Maintenance of Accounts. Separate
Deferral and Matching Contribution Accounts shall be maintained for each Participant, and more than
one Deferral and Matching Contribution Account may be maintained for a Participant, as deemed
necessary by the Administrative Committee for administrative purposes. A Participant’s Deferral and
Matching Contribution Accounts shall be utilized solely as a device for the measurement and
determination of the amounts to be paid to the Participant pursuant to this Plan, and shall not
constitute or be treated as a trust fund of any kind. The Administrative Committee shall determine
the balance of each Deferral and Matching Contribution Account, as of each Valuation Date, by
adjusting the balance of such Deferral and Matching Contribution Account as of each Valuation Date
to reflect changes in the value of the Hypothetical Investment Benchmarks thereof, credits and
debits pursuant to this Article VII, and distributions pursuant to Article VIII hereof.

Section 7.04

     Valuation of Accounts. The Deferral and Matching Contribution Accounts are bookkeeping
accounts, the value of which shall be based upon the performance of Hypothetical Investment
Benchmarks designated by the Participant from a group of Hypothetical Investment Benchmarks
selected by the Compensation Committee in its sole and absolute discretion. Any and all dividends
interest and other distributions paid with respect to a Hypothetical Investment Benchmark will be
deemed to be immediately reinvested in such Hypothetical Investment Benchmark. Notwithstanding the
foregoing, the terms of this Plan place no obligation upon the Company to invest or to continue to
invest any portion of the amounts in the Participant’s Deferral and Matching Contribution Accounts,
to invest in or to continue to invest in any specific asset, to liquidate any particular
investment, or to apply in any specific manner the proceeds from the sale, liquidation, or maturity
of any particular investment on a pre-tax basis. It is understood and agreed that the Company
assumes no risk of any decrease in the value of any investments or the Participant’s Deferral and
Matching Contribution Accounts, and the

Page 17

 

Company’s sole obligations are to maintain the Participant’s Deferral and Matching Contribution
Accounts and make payments to the Participant as herein provided.

Section 7.05

     Hypothetical Investment Benchmarks.

     (a) Each Participant shall be entitled to direct the manner in which his or her Deferral and
Matching Contribution Accounts will be deemed to be invested, by selecting from among the
Hypothetical Investment Benchmarks designated by the Compensation Committee in its sole and
absolute discretion from time to time and specified in the Participant Agreement or the Director’s
Deferral Election Form, as the case may be, in accordance with such rules, regulations and
procedures as Compensation Committee may establish from time to time. Notwithstanding anything to
the contrary herein, earnings and losses based on a Participant’s Hypothetical Investment
Benchmarks investment elections shall begin to accrue as of the date such Participant’s Deferrals
and Matching Contributions are credited to his/her Deferral and Matching Contribution Accounts. A
designation of Hypothetical Investment Benchmark shall continue in effect unless and until amended
with the submission of a new designation in accordance with Section 7.05(b) herein. Each successive
designation of Hypothetical Investment Benchmarks for a Participant’s Deferral and Matching
Contribution Accounts established in any particular Plan Year may be applicable to either future
contributions to or the cumulative balance of a Deferral Account balance, or to both, at the
election of the Participant.

     (b) Amounts deferred into a Deferral Account or credited to a Matching
Contribution Account may be transferred among Hypothetical Investment Benchmarks pursuant to an
allocation election which may be made daily. Such allocation election shall be made in accordance
with procedures established under the Plan and shall be effective as of the date determined in
accordance with such procedures

     (c) Credits to a Participant’s Deferral and Matching Contribution
Accounts in accordance with this Article VII shall continue until the Deferral and Matching
Contribution Account balances are paid in full to the Participant or the Participant’s Beneficiary;
provided, however, the Hypothetical Investment Benchmarks designated for any particular Plan Year
following the commencement of payments to a Participant or a Participant’s Beneficiary hereunder
shall be fixed at the Hypothetical Investment Benchmarks last used immediately prior to the
commencement of payments to the Participant or the Participant’s Beneficiary under this Plan; and
provided further that no credits will be allocated to a Participant’s Matching Contribution Account
following the date a Participant terminates employment with the Company.

     (d) (i) Subject to Section
7.05(d)(v), the Hypothetical Investment Benchmarks available for Deferral and Matching Contribution
Accounts from time to time may include a “Clear Channel Communications, Inc. Share Fund,” which
shall consist of deemed investments in shares of Common Stock. Deferrals that are deemed to be
invested in the Clear Channel Communications, Inc. Share Fund shall be converted into Share Units
based upon the Fair Market Value of the Common Stock as of the date(s) the Deferrals or Matching
Contributions are to be credited to the Participant’s Deferral or Matching Contribution Account, as
applicable. The portion of any Deferral or Matching Contribution Account that is invested in the
Clear

Page 18

 

Channel Communications, Inc. Share Fund shall be credited with additional Share Units of Common
Stock with respect to cash dividends, if any, paid on the Common Stock as of the payment date of
such dividend.

     (ii) When a reallocation among Hypothetical Investment Benchmarks or a distribution
of all or a portion of a Participant’s Deferral or Matching Contribution Account that is invested
in the Clear Channel Communications, Inc. Share Fund is to be made, the balance of such Clear
Channel Communications, Inc. Share Fund allocation shall be determined by dividing the Fair Market
Value of one share of Common Stock on the most recent Valuation Date preceding the date of such
reallocation or distribution into the number of Share Units to be reallocated or distributed.
Deferral amounts for which the Clear Channel Communications, Inc. Share Fund has been selected as a
Hypothetical Investment Benchmark shall be distributed in the form of cash having a value equal to
the Deferral or Matching Contribution balance allocated to the Clear Channel Communication, Inc.
Share Fund divided by the Fair Market Value of one share of Common Stock on the Valuation Date.

     (iii) In the event of a stock dividend, split-up or combination of the Common Stock, merger,
consolidation, reorganization, re-capitalization, or other change in the corporate structure or
capitalization affecting the Common Stock, such that an adjustment is determined by the
Compensation Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under this Plan, then the Compensation
Committee may make appropriate adjustments to the number of deemed shares of Common Stock credited
to any Deferral or Matching Contribution Account. The determination of the Compensation Committee
as to such adjustments, if any, shall be binding and conclusive.

     (iv) Notwithstanding any other
provision of this Plan, the Administrative Committee shall adopt such procedures as it may
determine are necessary to ensure that with respect to any Participant who is actually or
potentially subject to Section 16(b) of the Securities Exchange Act of 1934, as amended, the
crediting of deemed shares to such Participant’s Deferral or Matching Contribution Account is not
deemed to be a non-exempt purchase for purposes of such Section 16(b), including without limitation
requiring that no shares of Common Stock or cash relating to such deemed shares may be distributed
for six months after being credited to such Deferral or Matching Contribution Account.

     (v) Notwithstanding any other provision of this Plan, to the extent that shares of the
Company are received by the Plan in a dividend transaction, the Company stock fund will be
maintained as one of the ongoing hypothetical investment funds, but the Clear Channel
Communications, Inc. Share Fund shall be held as a wasting investment fund to be sold as directed
by Participants within a period expected to last one year from the date of Clear Channel
Communications, Inc.’s distribution to its shareholders of all of the outstanding capital stock of
the Company.

     Section 7.06

     Statement of Accounts. The Administrative Committee shall provide
periodically to each Participant a statement setting forth the balance of such Participant’s
Deferral and Matching Contribution Accounts as of the end of the most recently completed accounting
period, in such form as the Administrative Committee deems desirable.

Page 19

 

ARTICLE VIII

DISTRIBUTIONS AND WITHDRAWALS

Section 8.01

     Time and Form of Payment.
(a) Subject to the end of the Deferral Period for
each Deferral and Matching Contribution Account, the Company shall pay to the Participant the
balance of such Deferral and Matching Contribution Account at the time or times elected by the
Participant in the applicable Participation Agreement or Directors’ Deferral Election form;
provided, however, that if the Participant has elected to receive payments from a Deferral or
Matching Contribution Account in a lump sum, the Company shall pay the balance in such Deferral or
Matching Contribution Account (determined as of the Valuation Date) in a lump sum in cash, on or
about fifteen (15) days after the end of the Deferral Period. If the Participant has elected to
receive payments from a Deferral or Matching Contribution Account in installments, the Company
shall make annual payments in cash from such Deferral or Matching Contribution Account, each of
which shall consist of an amount equal to (i) the balance of such Deferral or Matching Contribution
Account as of the Valuation Date preceding the payment date, times (ii) a fraction, the numerator
of which is one and the denominator of which is the number of remaining installments (including the
installment being paid). The first such installment shall be paid, on or about fifteen (15) days
after the end of the Deferral Period and each subsequent installment shall be paid on or about the
anniversary of such first payment. Each such installment shall be deemed to be made on a pro rata
basis from each of the different Hypothetical Investment Benchmarks for the Deferral or Matching
Contribution Account (if there is more than one such Hypothetical Investment Benchmark).

Section 8.02

     Retirement. Subject to Section(s) 6.02(d) and 8.01, and Section 8.06 hereof, if a
Participant has elected to have the balance of his or her Deferral and Matching Contribution
Accounts distributed upon Retirement, the balance of such accounts (determined as of the Valuation
Date preceding such Retirement and including any vested Matching Contributions) shall be
distributed on or before January 15th of the calendar year following the year of the Participant’s
Retirement, in equal annual installments or a lump sum as elected by the Participant in the
Participation Agreement or Directors’ Deferral Election Form.

Section 8.03

     Specific Year
Distributions. Subject to Sections 8.01, 8.06 and 6.02(d) hereof, if a Participant has elected
to defer Specific Year Deferrals under the Plan for a stated number of years, the Specific Year
Deferral Account balance of the Participant (determined as of the Valuation Date preceding the end
of such Deferral Period) shall be distributed in equal annual installments or a lump sum (as
elected by the Participant in the Participant Agreement or Directors’ Deferral Election Form) on or
before January 15th of the calendar year following the end of the Deferral Period elected in the
Participant Agreement or Directors’ Deferral Election Form. In the event of the Retirement of a
Participant who is then receiving a Specific Year Deferral distribution as provided herein, such
installment payments shall continue for such

Page 20

 

period of time as originally elected by the Participant in the Participant’s Agreement or
Directors’ Deferral Election Form. In the event of a Participant’s Retirement before the
commencement of a Specific Year Deferral and Matching Contribution distribution as provided herein,
then such Deferral and Matching Contributions shall be paid upon the Retirement of the Participant,
in the same form as the Participant has elected for distribution of such Participant’s Deferral and
Matching Contribution Accounts upon Retirement.

Section 8.04

     Termination of Employment Other
Than Retirement. Subject to Section 6.02(d) and notwithstanding the provisions of Sections
6.01, 8.01 and 8.02 hereof and any Participation Agreement, in the event of a Participant’s
Termination of Employment prior to receiving full payment of his or her Deferral and Matching
Accounts, the Company shall pay the balance of the Deferral and Matching Accounts, if any,
(determined as of the Valuation Date applicable to such event and including any vested Matching
Contributions) in a lump sum in cash to the Participant or the Participant’s Beneficiary or
Beneficiaries (as the case may be) as soon as practicable following the occurrence of such
Termination of Employment.

Section 8.05

     Death of a Participant Subsequent to Commencement of
Distribution Payments. In the event of the death of a Participant subsequent to the
commencement of distribution payments hereunder but prior to completion of such payments, the
remaining balance, if any, of the Participant’s Deferral and Matching Contribution Accounts shall
be paid to the Beneficiary in a lump sum as soon as practicable following the Participant’s
death.

Section 8.06

     Distributions to “Covered Employees”. If any distribution or withdrawal
under the Plan from a Deferral or Matching Contribution Account will result in any portion of the
distribution or withdrawal (or any other amount paid by the Company to such Participant during the
same Plan Year) not being deductible by reason of Code Section 162(m), then such distribution or
withdrawal shall be deferred until the earlier to occur of (a) the calendar year following the
Participant’s year of Termination of Employment or Retirement or (b) the first calendar year in
which such Participant is no longer a “covered employee” as defined by Section 162(m) of the
Code.

Section 8.07

     Change of Control. In the event of a Change of Control, the terms and
conditions of the Plan and any and all Participation Agreements or Directors’ Deferral Election
Forms shall remain in full force and effect, and shall be binding upon any assigns and any
successor in interest to the Company which succeeds to substantially all of its assets and business
through the Change of Control.

Section 8.08

     Hardship Withdrawals while Employed by the
Company. A Participant who has an unforeseeable emergency, as determined by the Administrative
Committee, may withdraw from his Deferral Account an amount not to exceed the lesser of:

Page 21

 

	 	(a)	 	the then value of his vested Deferral Account balance as of the Valuation Date
coincident with or immediately preceding the withdrawal, or
	 
	 	(b)	 	such lesser amount determined by the Administrative Committee under standards
established by the Administrative Committee.

For purposes of this Section 8.08, “unforeseeable emergency” means a severe financial hardship to
the Participant resulting from an illness or accident of the Participant, the Participant’s spouse,
or a dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant’s
property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as
a result of events beyond the control of the Participant. A withdrawal based on an unforeseeable
emergency pursuant to this Section 8.08 shall not exceed the amounts necessary to satisfy such
emergency, plus amounts necessary to pay taxes reasonably anticipated as a result of the
distribution after taking into account the extent to which such unforeseeable emergency is or may
be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of
the Participant’s assets (to the extent the liquidation of such assets would not itself cause
severe financial hardship). The determination of the existence of a Participant’s unforeseeable
emergency and the amount required to be distributed to meet the need created by the unforeseeable
emergency shall be made by the Administrative Committee.

Page 22

 

ARTICLE IX

BENEFICIARY DESIGNATION

Section 9.01

     Beneficiary Designation. Each Participant shall designate a Beneficiary to receive
benefits under the Plan. A Beneficiary designation shall be made by the Participant by filing a
designation with the Administrative Committee, in such form and in accordance with such procedures
as the Administrative Committee shall establish from time to time. If more than one Beneficiary is
designated, the share and/or precedence of each Beneficiary shall be indicated. A Participant shall
have the right to change the Beneficiary designation at any time by submitting a new designation to
the Administrative Committee.

Section 9.02

     Proper Beneficiary. If the Administrative Committee has any doubt as to the proper
Beneficiary to receive payments hereunder, the Administrative Committee shall have the right to
withhold such payments until the matter is finally adjudicated by a court of competent
jurisdiction. However, any payments made by the Administrative Committee, in good faith and in
accordance with this Plan, shall fully discharge the Company from all further obligations with
respect to that payment.

Section 9.03

     Minor or Incompetent Beneficiary. In making any payments to or for the benefit of any
minor or an incompetent Beneficiary, the Administrative Committee, in its sole and absolute
discretion, may make a distribution to a legal or natural guardian or other relative of a minor or
court appointed committee of such incompetent. Alternatively, it may make a payment to any adult
with whom the minor or incompetent temporarily or permanently resides. The receipt by a guardian,
committee, relative or other person shall be a complete discharge to the Company. Neither the
Company nor the Committee shall have any responsibility to see to the proper application of any
payments so made. 

Section 9.04

     No Beneficiary Designation. If a Participant fails to designate a Beneficiary as
provided in Section 9.01, or if all designated Beneficiaries predecease the Participant or die
prior to complete distribution of the Participant’s benefits hereunder, then the Participant’s
designated Beneficiary shall be deemed to be the Participant’s estate.

Page 23

 

ARTICLE X

AMENDMENT AND TERMINATION OF PLAN

Section 10.01

     Amendment. The Board reserves the right to amend this Plan from time to time in whole
or in part; provided, however, that no such amendment may reduce, or relieve the Company of any
obligation with respect to the balance of any Deferral and Matching Contribution Accounts
maintained under this Plan as accrued at the time of such amendment, nor shall any amendment
otherwise have a retroactive effect, without the written consent of the affected Participant or
Beneficiary, as the case may be.

     Notwithstanding the preceding sentence, the Retirement Benefits Committee appointed to
administer the qualified plans of the Company, or the duly appointed delegate of such committee,
may approve amendments to the Plan, with or without prior approval or subsequent ratification by
the Board of Directors, if the amendment:

	 	(a)	 	does not significantly change the benefits provided under the Plan (except as
required for compliance with Code Section 409A and any regulations or guidance
promulgated thereunder and for compliance with any other change in the applicable law);
and
	 
	 	(b)	 	does not significantly increase costs of the Plan.

Section 10.02

     After a Change of Control. After a Change of Control, the Company may amend this Plan
solely for the purpose of ceasing Deferrals of Eligible Compensation following the Change of
Control.

Section 10.03

     Company’s Right to Terminate. The Board may at any time terminate the Plan with
respect to future Participation Agreements or Directors’ Deferral Election Forms. The Board may
also terminate the Plan in its entirety at any time for any reason, including without limitation
if, in its judgment, the continuance of the Plan, the tax, accounting, or other effects thereof, or
potential payments thereunder would not be in the best interests of the Company. The termination of
the Plan and distribution of vested account balances thereunder shall be subject to the following:

	 	(i)	 	The Board also terminates any other arrangement sponsored by the Company and
any related employer which are required to be aggregated with this Plan under Code
Section 409A (and the regulations and guidance promulgated thereunder) for plan
termination purposes;
	 
	 	(ii)	 	No payments other than payments that would be payable under the terms of the
Plan and arrangements if the termination had not occurred are made within 12 months of
the termination of the arrangements; and
	 
	 	(iii)	 	All payments are made within 24 months of the termination of the
arrangements.

Page 24

 

In the event of such termination, neither the Company nor any related employer shall adopt a new
arrangement that would be aggregated with any terminated arrangement under Code Section 409A (and
the regulations and guidance promulgated thereunder) if the same Participant participated in both
arrangements at any time within five years following the date of termination of such arrangement.

Page 25

 

ARTICLE XI

NATURE OF COMPANY’S OBLIGATION

Section 11.01

     Company’s Obligation. The Company’s obligations under this Plan shall be an unfunded
and unsecured promise to pay. The Company shall not be obligated under any circumstances to fund
its financial obligations under this Plan.

Section 11.02

     Rabbi Trust. In order to meet its contingent obligations hereunder, the Company may,
in its sole and absolute discretion, set aside or earmark funds in an amount, determined by the
Compensation Committee, equal to the total amounts necessary to provide benefits under the Plan.
The Compensation Committee may, at is discretion, direct the Company to establish one or more
grantor trusts to provide for the ultimate payment of the Company’s obligations under this Plan,
but the trust instrument for any such trust must specifically provide that its assets are subject
to the claims of the Company’s creditors.

Section 11.03

     Creditor Status. Any assets which the Company may acquire or set aside to help cover
its financial liabilities are and must remain general assets of the Company subject to the claims
of its creditors. Neither the Company nor this Plan gives a Participant or Beneficiary any
beneficial ownership interest in any asset of the Company. In the event that the Company elects to
invest funds to pay the Deferral and Matching Contribution Account balances under the terms of this
Plan, title to and beneficial ownership of such assets shall at all times remain with the Company.
No Participant or Beneficiary shall have any property interest in any specific assets of the
Company; such assets shall at all times remain subject to the claims of the Company’s general
creditors. With respect to their account balances under the Plan, Participants and Beneficiaries
shall be unsecured general creditors of the Company.

Page 26

 

ARTICLE XII

MISCELLANEOUS

Section 12.01

     Nonassignability. Except as specifically set forth in the Plan with respect to the
designation of Beneficiaries, neither a Participant nor any other person shall have any right to
commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any
part thereof, which are, and all rights to which are, expressly declared to be unassignable and
non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to
seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance
owed by a Participant or any other person, nor be transferable by operation of law in the event of
a Participant’s or any other person’s bankruptcy or insolvency.

Section 12.02

     Validity and Severability. The invalidity or unenforceability of any provision of this
Plan shall not affect the validity or enforceability of any other provision of this Plan, which
shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction,
shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 12.03

     Governing Law. The validity, interpretation, construction and performance of this Plan
shall in all respects be governed by the laws of the State of Texas, without reference to
principles of conflict of law, except to the extent preempted by federal law.

Section 12.04

     Employment Status. This Plan does not constitute a contract of employment or impose on
the Participant or the Company any obligation for the Participant to remain an Employee of the
Company or change the status of the Participant’s employment or the policies of the Company and its
affiliates regarding termination of employment.

Section 12.05

     Underlying Bonus Programs. Nothing in this Plan shall prevent the Company from
modifying, amending or terminating the compensation or the bonus programs pursuant to which cash
awards are earned and which are deferred under this Plan.

Section 12.06

     Right to Offset. Any amount owed to the Company by a Participant of whatever nature
may be offset by the Company from the value of any benefit otherwise payable hereunder, and no
benefit hereunder will be distributed to the Participant unless and until all disputes between the
Company and the Participant have been fully and finally resolved and the Participant has waived all
claims against the Company in a manner that is acceptable to the Committee in its sole and
unrestricted discretion.

Page 27

 

Section 12.07

     Facility of Payment. If a Participant or Beneficiary is declared an incompetent or is
a minor or a conservator, guardian, or other person legally charged with his or her care has been
appointed, any benefits to which such Participant or Beneficiary is entitled will be payable to
such conservator, guardian, or other person legally charged with his or her care. The decision of
the Compensation Committee in such matters will be final, binding and conclusive upon the Company
and upon each Participant, Beneficiary and every other person or party interested or concerned. The
Company and the Compensation Committee will not be under any duty to see to the proper application
of such payments.

Section 12.08

     Merger. This Plan shall be binding and enforceable with respect to the obligation of
the Company against the Company and any successor to the Company by operation of law or by express
assumption of the Plan, and such successor will be substituted hereunder for the Company. This Plan
shall be binding upon a Participant or Beneficiary and their heirs, executors and administrators.

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly
authorized designee on this 31st day of October, 2005, effective as of November 1, 2005.

On Behalf of SFX Entertainment, Inc. d/b/a Clear Channel Entertainment.

	 	 	 	 	 
	By

	 	/s/ Judy K. Meuher 
	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Title:

	 	Director of Retirement Benefits 
	 	 
	 

	 	 	 	 

Page 28

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