Document:

Exhibit 10.6

 

 

STOCKHOLDERS AGREEMENT

 

AMONG

 

TOWNSQUARE MEDIA, INC.

 

AND

 

CERTAIN STOCKHOLDERS OF TOWNSQUARE MEDIA, INC.

 

DATED AS OF [ ], 2014

 

 

    	 

    	 

    

 

 

Table of Contents

 

	 	 	 	Page
	 	 	 	 
	1.	EFFECTIVENESS; DEFINITIONS.	1
	 	1.1	Closing	1
	 	1.2	Definitions	1
	 	 	 
	2.	GOVERNANCE	1
	 	2.1	Board of Directors	1
	 	2.2	Termination of Governance Provisions	2
	 	 	 
	3.	REMEDIES.	2
	 	3.1	Generally	2
	 	 	 
	4.	AMENDMENT, TERMINATION, ETC.	2
	 	4.1	Written Modifications	2
	 	4.2	Effect of Termination	2
	 	 	 
	5.	DEFINITIONS.  For purposes of this Agreement:	3
	 	5.1	Certain Matters of Construction	3
	 	5.2	Definitions	3
	 	 	 
	6.	MISCELLANEOUS.	4
	 	6.1	Authority; Effect	4
	 	6.2	Notices	4
	 	6.3	Binding Effect, Etc	5
	 	6.4	Descriptive Headings	5
	 	6.5	Counterparts	5
	 	6.6	Severability	5
	 	 	 
	7.	GOVERNING LAW.	5
	 	7.1	Governing Law	5
	 	7.2	Consent to Jurisdiction	5
	 	7.3	WAIVER OF JURY TRIAL	5
	 	7.4	Exercise of Rights and Remedies	6

 

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STOCKHOLDERS AGREEMENT

 

This Stockholders Agreement (the “Agreement”)
is made as of [ ], 2014 by and among:

 

(i)          Townsquare
Media, Inc., a Delaware corporation (the “Company”);

 

(ii)         each
of OCM POF IV AIF GAP Holdings, L.P., a Delaware limited partnership, and OCM PF/FF Radio Holdings PT, L.P, a Delaware limited
partnership (collectively, “Oaktree”); and

 

(iii)        each
of FiveWire Media Ventures, LLC, Steven Price, Stuart Rosenstein, Alex Berkett, Scott Schatz and Dhruv Prasad (collectively, the
“FiveWire Holders”).

 

RECITALS

 

	1.		On or about the date hereof, the Company is consummating an Initial Public Offering.

 

	2.		The Company and certain other parties previously entered into an Amended and Restated
Securityholders Agreement dated August 12, 2010, which will be terminated in connection with an Initial Public Offering.

 

	3.		The parties believe that it is in the best interests of the Company, Oaktree and the
FiveWire Holders to set forth their agreements on certain matters.

 

AGREEMENT

 

Therefore, the parties hereto hereby agree as follows:

 

	1.		EFFECTIVENESS; DEFINITIONS.

 

1.1           Closing.
This Agreement shall become effective upon the closing of the Initial Public Offering (referred to herein as the “Closing”).

 

1.2           Definitions.
Certain terms are used in this Agreement as specifically defined herein. These definitions are set forth or referred to in Section 6
hereof.

 

	2.		GOVERNANCE

 

2.1           Board
of Directors.

 

(a)                   Concurrently
with the effectiveness of this Agreement, the Company, Oaktree and the FiveWire Holders shall take all Necessary Action to cause
the board of directors of the Company (the “Board of Directors”) to
be comprised of seven (7) directors, (i) three (3) of whom shall be designated by Oaktree (each such director, an “Oaktree
Director”), (ii) one (1) of whom shall be the Chief Executive Officer (or equivalent) of the Company (the “Company
Director”) and (iii) three (3) of whom shall be nominated by the Company’s Nominating and Corporate Governance
Committee and shall initially be David Lebow, Gary Ginsberg and Amy Miles. Each of the foregoing directors shall be divided into
three classes of directors, each of whose members shall serve for staggered three-year terms as follows:

 

		·	the class I directors shall be B. James Ford and David Lebow, and their term will expire at the annual meeting of stockholders
to be held in 2015;

 

		·	the class II directors shall be the Chief Executive Officer, Steven Price, Gary Ginsberg and David Quick, and their term will
expire at the annual meeting of stockholders to be held in 2016; and

 

		·	the class III directors shall be Stephen Kaplan and Amy Miles, and their term will expire at the annual meeting of stockholders
to be held in 2017.

 

(b)          For
so long as Oaktree Beneficially Owns (directly or indirectly) at least one-third (1/3) of the number of shares of Common Stock
it Beneficially Owned as of the Closing, the Company hereby agrees to

 

    	 

    	 

    

  

include in the slate of nominees recommended by the Board of
Directors for election as directors at each applicable annual or special meeting of shareholders at which directors are to be elected
that number of individuals designated by Oaktree that, if elected, will result in three (3) Oaktree Directors each serving in a
separate class of directors on the Board of Directors. For so long as Oaktree Beneficially Owns (directly or indirectly) at least
one-third (1/3) of the number of shares of Common Stock it Beneficially Owned (directly or indirectly) as of the Closing, each
FiveWire Holder hereby agrees to take all Necessary Action tocause the election of such Oaktree Directors to the Board of Directors.

 

(c)          For
the avoidance of doubt, each Oaktree Director shall constitute an “Oaktree Director” for purposes of, and as such term
is used in, the Company’s Certificate of Incorporation, and shall be entitled to cast the number of votes as set forth therein.

 

(d)          In
the event that a vacancy is created at any time by the death, disability, retirement, resignation or removal of any Oaktree Director,
the Company and each FiveWire Holder hereby agrees to take all Necessary Action to cause the vacancy created thereby to be filled
as soon as practicable by an Oaktree Director.

 

(e)          The
Company shall reimburse the members of the Board of Directors for all reasonable out-of-pocket expenses incurred in connection
with their attendance at meetings of the Board of Directors and any committees thereof, including without limitation travel, lodging
and meal expenses.

 

(f)          The
Company shall obtain customary director and officer liability insurance on commercially reasonable terms.

 

2.2           Termination
of Governance Provisions. The provisions of this Section 2 shall terminate upon the written consent of Oaktree.

 

	3.		VOTING PROXY.

 

3.1           Grant
of Proxy. Each FiveWire Holder hereby grants to Oaktree a proxy that is irrevocable and coupled with an interest to vote their
shares of Class B Common Stock, including in any action by written consent, which proxy shall be valid and remain in effect for
so long Oaktree Beneficially Owns (directly or indirectly) at least fifty percent (50.0%) of the number of shares of Common Stock
it Beneficially Owned as of the Closing. Oaktree may exercise the irrevocable proxy granted to it hereunder at any time that the
vote, consent or approval of any holder of Class B Common Stock may be required. This proxy shall be assignable by Oaktree to any
transferee of all of the shares of Common Stock Beneficially Owned (directly or indirectly) by Oaktree as of the Closing, without
any further action required by any FiveWire Holder.

 

	4.		REMEDIES.

 

4.1           Generally.
The Company and each party hereto shall have all remedies available at law, in equity or otherwise in the event of any breach
or violation of this Agreement or any default hereunder by the Company or any party hereto. The parties acknowledge and agree
that in the event of any breach of this Agreement, in addition to any other remedies which may be available, each of the parties
hereto shall be entitled to specific performance of the obligations of the other parties hereto and, in addition, to such other
equitable remedies (including, without limitation, preliminary or temporary relief) as may be appropriate in the circumstances.

 

	5.		AMENDMENT, TERMINATION, ETC.

 

5.1           Written
Modifications. This Agreement may be amended, modified or extended, and the provisions hereof may be waived, only by an agreement
in writing signed by Oaktree; provided, however, that the consent of the FiveWire Majority Holders shall be required for any amendment,
modification, extension or waiver which has an adverse effect on the rights of the FiveWire Holders under this Agreement. Each
such amendment, modification, extension and waiver shall be binding upon each party hereto. In addition, each party hereto may
waive any right hereunder by an instrument in writing signed by such party or holder.

 

5.2           Effect
of Termination. No termination under this Agreement shall relieve any Person of liability for breach prior to termination.

 

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	6.		DEFINITIONS. For purposes of this Agreement:

 

6.1           Certain
Matters of Construction. In addition to the definitions referred to or set forth below in this Section 6:

 

(a)          The
words “hereof,” “herein,” “hereunder” and words of similar import shall refer to this Agreement
as a whole and not to any particular Section or provision of this Agreement;

 

(b)          Definitions
shall be equally applicable to both nouns and verbs and the singular and plural forms of the terms defined;

 

(c)          The
masculine, feminine and neuter genders shall each include the other; and

 

(d)          References
to Sections, unless otherwise specified, shall refer to Sections of this Agreement.

 

6.2           Definitions.
The following terms shall have the following meanings:

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Beneficial Ownership”
means beneficial ownership within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision. The term “Beneficially
Own” shall have a correlative meaning. For the avoidance of doubt, a Person shall be deemed to Beneficially Own
shares of Common Stock underlying warrants to purchase such shares, which warrants were owned by such Person as of the Closing.

 

“Board of Directors”
has the meaning set forth in Section 2.1.

 

“Class B Common Stock” has the meaning
set forth in the Certificate of Incorporation of the Company, as it may be amended from time to time.

 

“Closing”
has the meaning set forth in Section 1.1.

 

“Common Stock”
means the capital stock of the Company that is designated as “Common Stock” pursuant to the Certificate of Incorporation
of the Company, as it may be amended from time to time.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company Director”
has the meaning set forth in Section 2.1.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as in effect from time to time.

 

“FiveWire Holders”
has the meaning set forth in the Preamble.

 

“FiveWire Majority Holders” means FiveWire
Holders that collectively beneficially own a majority of the voting power of the shares of capital stock of the Company that are
then beneficially owned by the FiveWire Holders in the aggregate.

 

“Initial Public
Offering” means the initial underwritten public offering registered on Form S-1 (or any successor form under
the Securities Act), after which a class of the Common Stock is listed on a national securities exchange.

 

“Necessary Action”
means, with respect to a specified result, all actions permitted by law necessary to cause such result, including (i) in the case
of a stockholder of the Company, to vote or provide a written consent or proxy with respect to the Common Stock, (ii) causing members
of the Board of Directors (to the extent such members were nominated or designated by the Person obligated to undertake the Necessary
Action, and subject to any fiduciary duties that such members may have as directors of the Company) to act in a certain manner
or causing them to be removed in the event they do not act in such a manner and to adopt resolutions consistent with the foregoing,
(iii) executing agreements and instruments, and (iv) making, or causing to be made, with governmental, administrative or regulatory
authorities, all filings, registrations or similar actions that are required to achieve such result.

 

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“Oaktree”
has the meaning set forth in the Preamble.

 

“Oaktree Director”
has the meaning set forth in Section 2.1.

 

“Oaktree Supplemental
Director” has the meaning set forth in Section 2.1.

 

“Person”
means any individual, partnership, corporation, company, association, trust, joint venture, limited liability company, unincorporated
organization, entity or division, or any government, governmental department or agency or political subdivision thereof.

 

“Securities Act”
means the Securities Act of 1933, as in effect from time to time.

 

	7.		MISCELLANEOUS.

 

7.1           Authority;
Effect. Each party hereto represents and warrants to, and agrees with each other party that, the execution and delivery of
this Agreement and the consummation of the transactions contemplated hereby have been duly authorized on behalf of such party
and do not violate any agreement or other instrument applicable to such party or by which its assets are bound. This Agreement
does not, and shall not be construed to, give rise to the creation of a partnership among any of the parties hereto, or to constitute
any of such parties members of a joint venture or other association.

 

7.2           Notices.
All notices, requests, demands, claims and other communications required or permitted to be delivered, given or otherwise provided
under this Agreement must be in writing and must be delivered, given or otherwise provided to the address (or facsimile number)
listed below.

 

If to the Company, to:

Townsquare Media, Inc.

240 Greenwich Avenue

Greenwich, CT 06830

Facsimile: (203) 861-0920

Attention: Steven Price

 

with a copy to:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Facsimile: (212) 446-4943

	Attention: 	Joshua Korff
	 	Christopher Kitchen

 

If to Oaktree, to:

Oaktree Capital Management, L.P.

333 S. Grand Ave., 28th Floor

Los Angeles, CA 90071

Facsimile: (213) 830-6394

Attention: Andrew Salter

 

with a copy to:

Kirkland & Ellis LLP

333 South Hope Street

Los Angeles, CA 90071

Facsimile: (213) 680-8500

	Attention: 	John Weissenbach
	 	Tana Ryan

 

If to the FiveWire Holders, to:

c/o FiveWire Media Ventures LLC

240 Greenwich Avenue

Greenwich, Connecticut 06830

 

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Facsimile: (203) 861-0920

Attention: Steven Price

 

with a copy to:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Facsimile: (212) 446-6460

Attention: Joshua N. Korff

 

Each of the parties hereto shall be entitled to specify a
different address by giving notice as aforesaid to each of the other parties hereto.

 

7.3           Binding
Effect, Etc. This Agreement constitutes the entire agreement of the parties with respect to its subject matter, supersedes
all prior or contemporaneous oral or written agreements or discussions with respect to such subject matter and shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs, representatives, successors and assigns.

 

7.4           Descriptive
Headings. The descriptive headings of this Agreement are for convenience of reference only, are not to be considered a part
hereof and shall not be construed to define or limit any of the terms or provisions hereof.

 

7.5           Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one instrument.

 

7.6           Severability.
In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect, the parties hereto
will negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible
in an acceptable manner, to the end that the transactions and relationships contemplated hereby are fulfilled to the fullest possible
extent.

 

	8.		GOVERNING LAW.

 

8.1           Governing
Law. This Agreement shall be governed by and construed in accordance with the domestic substantive laws of the State of Delaware
without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive
laws of any other jurisdiction.

 

8.2           Consent
to Jurisdiction. Each party to this Agreement, by its execution hereof, (a) hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the State of Delaware for the purpose of any action, claim, cause of action
or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or
relating to the subject matter hereof, (b) hereby waives to the extent not prohibited by applicable law, and agrees not to assert,
and agrees not to allow any of its subsidiaries to assert, by way of motion, as a defense or otherwise, in any such action, any
claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from
attachment or execution, that any such proceeding brought in one of the above-named courts is improper or that this Agreement
or the subject matter hereof or thereof may not be enforced in or by such court and (c) hereby agrees neither to commence or maintain
any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out
of or based upon this Agreement, or relating to the subject matter hereof or thereof, other than before one of the above-named
courts, nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action,
claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation to any court other than
one of the above-named courts, whether on the grounds of inconvenient forum or otherwise. Notwithstanding the foregoing, to the
extent that any party hereto is or becomes a party in any litigation in connection with which it may assert indemnification rights
set forth in this agreement, the court in which such litigation is being heard shall be deemed to be included in clause (a) above.
Each party hereto hereby consents to service of process in any such proceeding in any manner permitted by Delaware law, and agrees
that service of process by registered or certified mail, return receipt requested, at its address specified pursuant to Section
7.2 hereof is reasonably calculated to give actual notice.

 

8.3           WAIVER
OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND
COVENANTS

 

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THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR
OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT,
TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF,
OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING
OR HEREAFTER ARISING. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 8.3
CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO
MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 8.3 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH
PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

8.4           Exercise
of Rights and Remedies. No delay of or omission in the exercise of any right, power or remedy accruing to any party as a result
of any breach or default by any other party under this Agreement shall impair any such right, power or remedy, nor shall it be
construed as a waiver of or acquiescence in any such breach or default, or of any similar breach or default occurring later; nor
shall any such delay, omission nor waiver of any single breach or default be deemed a waiver of any other breach or default occurring
before or after that waiver.

 

[The remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, each of the undersigned has duly executed
this Agreement (or caused this Agreement to be executed on its behalf by its officer or representative thereunto duly authorized)
under seal as of the date first above written.

 

	THE COMPANY:	TOWNSQUARE MEDIA, INC. 
	 	 
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

  

[Townsquare Media – Stockholders’ Agreement]

 

    	 

    	 

    

  

	Oaktree:	OCM POF IV AIF GAP HOLDINGS, L.P.
	 	 	 
	 	By: OCM/GAP Holdings IV, Inc.
	 	Its: General Partner
	 	 
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Its:	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 
	 	 	 
	 	 	 
	 	OCM PF/FF RADIO HOLDINGS PT, L.P
	 	 	 
	 	By:	 
	 	Its:	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Its:	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

[Townsquare Media– Stockholders’ Agreement]

 

    	 

    	 

    

  

	FiveWire Holders:	FIVEWIRE MEDIA VENTURES LLC
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	 
	 	STEVEN PRICE
	 	 	 
	 	 
	 	 	 
	 	STUART ROSENSTEIN
	 	 	 
	 	 
	 	 	 
	 	ALEX BERKETT
	 	 	 
	 	 
	 	 	 
	 	SCOTT SCHATZ
	 	 	 
	 	 
	 	 	 
	 	DHRUV PRASAD
	 	 
	 	 

 

 

 

 

 

[Townsquare Media – Stockholders’ Agreement]Exhibit 10.7

 

TOWNSQUARE MEDIA, LLC

 

SELLDOWN AGREEMENT

 

This SELLDOWN AGREEMENT
(this "Agreement"), dated as of [___________], 2014, is made by and among Townsquare Media, LLC, a Delaware limited
liability company (including any corporate successor thereto, the "Company"), OCM POF IV AIF GAP Holdings, L.P.
and OCM PF/FF Radio Holdings PT, L.P. (the "Investors"), and certain unitholders of the Company as set forth on
Schedule A hereto (the "Management Holders"). The Investors and the Management Holders are referred to
herein collectively as the "Holders" and individually as a "Holder." Except as otherwise provided
herein, capitalized terms used herein are defined in Section 4(a) hereof.

 

WHEREAS, the Company
has filed a registration statement with the Securities and Exchange Commission in connection with its initial public offering (the
"IPO");

 

WHEREAS, prior to the
closing of the IPO, the Company will convert into Townsquare Media, Inc., a Delaware corporation (the "Conversion");
and

 

WHEREAS, the Company
and the Holders are entering into this Agreement to, among other things, set forth their agreement regarding the sale of shares
of Common Stock of the Company held by the Management Holders following the Conversion and the IPO.

 

NOW, THEREFORE, in consideration
of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties to this Agreement hereby agree as follows:

 

1.             Representations
and Warranties. Each Holder represents and warrants that (a) prior to the Conversion such Holder is the owner of the number
of Class A Preferred Units, Class A Common Units, Class B Common Units, warrants exercisable for Class A Preferred Units and/or
warrants exercisable for Class A Common Units of the Company set forth opposite such Holder's name on Schedule A hereto,
(b) this Agreement has been duly authorized, executed and delivered by such Holder and constitutes the valid and binding obligation
of such Holder, enforceable in accordance with its terms, and (c) such Holder has not granted and is not a party to any proxy,
voting trust or other agreement which is inconsistent with, conflicts with, or violates any provision of this Agreement.

 

2.             Restrictions
on Transfer of Common Stock.

 

(a)          General
Restrictions on Transfer. Except as otherwise expressly provided in this Section 2, a Management Holder may Transfer
shares of Restricted Common Stock only at such time as one or both of the Investors are also selling Common Stock (and/or warrants
exercisable for Common Stock) in a Sale Transaction and then only up to a number of shares of Restricted Common Stock (a
"Transfer Amount") equal to the product of (1) the aggregate number of shares of Restricted Common Stock held
by such Management Holder immediately prior to such Sale Transaction (excluding for this purpose shares of Restricted Common Stock
that are already transferable by such Management Holder as a result of one or more Transfer Amounts available to such Management
Holder as a result of the application of the next occurring proviso

 

    	 

    	 

    

 

below) multiplied
by (2) a fraction, the numerator of which is the aggregate number of shares of Common Stock (and/or warrants exercisable for Common
Stock) being sold by the Investors in such Sale Transaction and the denominator of which is the total number of shares of
Common Stock and warrants exercisable for Common Stock held by all Investors immediately prior to such Sale Transaction; provided
that, if at the time of any Sale Transaction by the Investors, a Management Holder chooses not to Transfer any Transfer Amount
or is otherwise restricted from Transferring or not permitted to Transfer all or any portion of any Transfer Amount at such time
(including as part of the IPO), such Management Holder shall retain the right to Transfer an aggregate number of shares of Restricted
Common Stock in connection with a future Sale Transaction by the Investors (in addition to any rights to Transfer shares of Restricted
Common Stock in accordance with this Section 2 in connection with such future Sale Transaction by the Investors) equal to
such prior Transfer Amount(s) not sold by such Management Holder. Upon the written request from time to time of any Management
Holder, the Company shall inform such Management Holder of the number of shares of Restricted Common Stock that such Management
Holder may transfer in reliance on this Section 2 subject to the terms and conditions hereof. In the event of a conflict
between the provisions of this Section 2(a) and the cutback provisions contained in the Registration Agreement, the provisions
of this Section 2(a) shall control and the Investors agree that the cutbacks requested by the underwriters in a registered
offering under the Registration Agreement may be made on a non-pro rata basis as between the Management Holders and the Investors
to accommodate such Transfer Amount(s).

 

(b)          Notification
of Planned Sale Transactions. In the event that any Investor plans to sell Common Stock (and/or warrants exercisable for Common
Stock) in a Sale Transaction, then, unless the Registration Agreement provides for different procedures applicable to such
particular Sale Transaction (in which case, such procedures set forth in the Registration Agreement shall control), such Investor
will notify the Company in writing as promptly as practicable in advance of such Sale Transaction, and the Company will, within
three days after receiving such notice from such Investor, notify each Management Holder in writing of the proposed Sale
Transaction, which written notice shall set forth (i) such Management Holder's Transfer Amount as a result of such Sale Transaction
and (ii) the number of shares of Restricted Common Stock, if any, that are already transferable by such Management Holder as a
result of one or more Transfer Amounts available to such Management Holder as a result of the application of the proviso in the
first sentence of Section 2(a)). The Management Holder shall be permitted to Transfer such shares of Restricted Common Stock
pursuant to this Section 2 at any time following the date of the Sale Transaction by the Investor(s).

 

(c)          Permitted
Transfers. The restrictions on transfer set forth in Section 2(a) shall not apply to any Transfer of Restricted Common
Stock by a Management Holder who is a natural person (i) in the event of such Management Holder's death, pursuant to will
or applicable laws of descent or distribution, (ii) to his or her legal guardian (in case of any mental incapacity), (iii) to a
bona fide charitable organization or (iv) to or among his or her Family Group; provided that the restrictions contained
in this Agreement will continue to be applicable to such Restricted Common Stock after any Transfer pursuant to this Section
2(c). At least 15 days prior to the Transfer of Restricted Common Stock pursuant to this Section 2(c) (other than in
the case of Transfers pursuant clauses (i) or (ii) above, in which case as promptly as practical following such Transfer), the
transferee(s) will deliver a written notice to the Company, which notice shall disclose in reasonable detail the identity of such
transferee(s). Notwithstanding the foregoing, no

 

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Management Holder hereto
shall avoid the provisions of Section 2(a) by (A) making one or more Transfers to one or more Permitted Transferees and
then disposing of all or any portion of such party's interest in any such Permitted Transferee or (B) Transferring the securities
of any entity holding (directly or indirectly) Restricted Common Stock.

 

(d)          Applicability
of Restrictions on Transfer. The restrictions on transfer set forth in this Section 2 shall begin on the date of the
Conversion and continue until the termination of this Agreement in accordance with Section 6 hereof; provided that,
notwithstanding anything in this Agreement to the contrary (i) for any Management Holder who is an individual person, the restrictions
on transfer set forth in this Section 2 shall no longer apply to Restricted Common Stock that was originally issued to a
Management Holder pursuant to the Conversion once such Management Holder is no longer employed by the Company or any of its subsidiaries,
and (ii) the restrictions on transfer set forth in this Section 2 shall not apply to any shares of Common Stock acquired
or received by a Management Holder after the closing of the IPO and not issued in the Conversion (other than shares of Common Stock
acquired upon the conversion or exchange of Restricted Common Stock received by such Management Holder in connection with the Conversion).

 

3.             Effectiveness.
This Agreement is being executed on the date hereof and shall automatically become effective upon, but only upon, the consummation
of the Conversion. Notwithstanding the foregoing, if the Conversion occurs but the IPO subsequently does not close, this Agreement
shall be void and of no further force or effect.

 

4.             Definitions.

 

(a)          The
following terms, as used in this Agreement, have the following meanings:

 

"Affiliate"
means, with respect to a Person, another Person that directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such Person, where "control" means the possession, directly or indirectly,
of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract
or otherwise.

 

"Common Stock"
means shares of the Company's Class A Common Stock, par value $0.01 per share, the Company's Class B Common Stock, par value $0.01
per share, and the Company's Class C Common Stock, par value $0.01 per share.

 

"Family Group"
means, with respect to a Person who is an individual, such Person's spouse and descendants (whether natural or adopted), and any
trust, family limited partnership, limited liability company or other entity wholly owned, directly or indirectly, by such Person
or such Person's spouse and/or descendants that is and remains solely for the benefit of such Person and/or such Person's spouse
and/or descendants and any retirement plan for such Person.

 

"Management Holder"
means a Management Holder and its Permitted Transferees.

 

    	3

    	 

    

 

"Permitted Transferees"
means (i) in the case of a Management Holder, a transferee of Common Stock permitted in accordance with Section 2(c) herein,
and (ii) in the case of an Investor and FiveWire Media Investors LLC, any Affiliate thereof.

 

"Person"
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

"Public Sale"
means any sale of Common Stock (i) to the public pursuant to an offering registered under the Securities Act, and (ii) to the public
pursuant to Rule 144 under the Securities Act (or any similar rule then in effect) effected through a broker, dealer or market
maker.

 

"Registration
Agreement" means the Second Amended and Restated Registration Agreement of the Company, dated as of [__________], 2014,
as amended from time to time.

 

"Restricted Common
Stock" means a number of shares of each class of Common Stock held by a Management Holder equal to (a) the total number
of shares of such class of Common Stock held by such Management Holder as of immediately after the Conversion, multiplied by
(b) the "Restricted Stock Percentage" set forth opposite such Management Holder's name on Schedule A hereto. If
any shares of Restricted Common Stock are converted into or exchanged for another class of Common Stock, the restrictions set forth
in this Agreement shall continue to apply to the shares of Common Stock into which such shares of Restricted Common Stock are converted
or for which they are exchanged.

 

"Sale Transaction"
means a Public Sale or in any other transaction in which an Investor Transfers shares of Common Stock to a party other than a Permitted
Transferee.

 

"Securities Act"
means the Securities Act of 1933, as amended from time to time.

 

"Transfer"
means to sell, transfer, assign, pledge or otherwise, directly or indirectly, dispose of (whether with or without consideration
and whether voluntarily or involuntarily or by operation of law).

 

(b)          Whenever
this Agreement requires a calculation of shares of Common Stock held by the Investors, such calculation shall aggregate the number
of shares of Common Stock and warrants exercisable for Common Stock held by the Investors and their Permitted Transferees.

 

5.              Transfers
in Violation of Agreement. Any Transfer or attempted Transfer of any Common Stock in violation of any provision of this Agreement
shall be void, and the Company shall not record such Transfer on its books or treat any purported transferee of such Common Stock
as the owner of such Common Stock for any purpose.

 

6.              Termination.
Subject to the provisions of Section 3 above, this Agreement shall terminate upon the earlier of (i) such time as the Investors
no longer hold at least 10% of the shares of Common Stock and warrants exercisable for Common Stock
collectively held by the Investors immediately following the consummation of the IPO and (ii) the third anniversary
of the closing of the IPO.

 

    	4

    	 

    

 

 

7.              Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability
of any other provision of this Agreement in such jurisdiction or affect the validity, legality or enforceability of any provision
in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

 

8.              Entire
Agreement. Except as otherwise expressly set forth herein, this Agreement embodies the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements
or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. For
the avoidance of doubt, this Agreement shall not supersede or preempt any obligations of any Holder under any "lock up"
agreement executed by any Holder in connection with any registered offering of Common Stock from time to time during the term of
this Agreement. This Agreement supersedes, with respect to the subject matter hereof, each Restricted Unit Grant Agreement pursuant
to which the Company granted Class A Preferred Units and Class A Common Units to a Management Holder, and such Restricted Unit
Grant Agreements shall automatically be terminated in full effective upon the consummation of the IPO.

 

9.              Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which taken together shall
constitute one and the same agreement.

 

10.            Remedies.
The Company and the Holders shall be entitled to enforce their rights under this Agreement specifically, to recover damages by
reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor. The parties hereto
agree and acknowledge that money damages alone would not be an adequate remedy for any breach of the provisions of this Agreement
and that the Company or any Holder may in its sole discretion apply to any court of law or equity of competent jurisdiction for
specific performance and/or injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation
of the provisions of this Agreement either as an exclusive remedy or in combination with claims for monetary damages.

 

11.            Notices.
Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, given by facsimile to the
facsimile number set forth below, or mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable
overnight courier service (charges prepaid) to the Company and the Investors at the addresses and facsimile numbers set forth below
and to any Management Holder at the address for such Management Holder in the Company's records and to any subsequent holder of
Common Stock subject to this Agreement at such facsimile number or address as indicated by the Company's records, or at such address
or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Notices
shall be deemed to have been given hereunder when delivered personally, when confirmation of facsimile has been received by the
sender, three days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service.

 

    	5

    	 

    

 

Notices to the Company:

 

Townsquare Media, LLC

240 Greenwich Avenue

Greenwich, Connecticut 06830

Facsimile: (203) 861-0920

Attention: Chief Executive Officer

 

with copies (which shall not constitute
notice) to:

Oaktree Capital Management, L.P.

333 S. Grand Avenue, 28th Floor

Los Angeles, CA 90071

Facsimile: (213) 830-6394

Attention: David Quick

 

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Facsimile: (212) 446-4943

Attention: Joshua Korff

                  Christopher Kitchen

 

Kirkland & Ellis LLP

333 South Hope Street

Los Angeles, CA 90071

Facsimile: (213) 680-8500

Attention: Tana M. Ryan

 

Notices to the Investors:

 

c/o Oaktree Capital Management, L.P.

333 S. Grand Avenue, 28th Floor

Los Angeles, CA 90071

Facsimile: (213) 830-6394

Attention: David Quick

 

with copies (which shall not constitute
notice) to:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Facsimile: (212) 446-4943

Attention: Joshua Korff

                  Christopher Kitchen

 

    	6

    	 

    

 

Kirkland & Ellis LLP

333 South Hope Street

Los Angeles, CA 90071

Facsimile: (213) 680-8500

Attention: Tana M. Ryan

 

12.            Governing
Law. All issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement and
the schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving
effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Delaware.

 

13.            Waiver
of Jury Trial. As a specifically bargained for inducement for each of the parties hereto to enter into this Agreement (after
having the opportunity to consult with counsel), each party hereto expressly waives the right to trial by jury in any lawsuit or
proceeding relating to or arising in any way from this Agreement or the matters contemplated hereby.

 

14.            No
Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the
parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement.

 

15.            Descriptive
Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this
Agreement.

 

*    *     *     *

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this Selldown Agreement on the day and year first written above.

 

	 	TOWNSQUARE MEDIA, LLC	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

 

Signature page to Selldown
Agreement

    	 

    	 

    

 

	 	OCM POF IV AIF GAP HOLDINGS, L.P.
	 	 
	 	By: OCM/GAP Holdings IV, Inc.
	 	Its: General Partner
	 	 
	 	By: 	 
	 	Name:
	 	Title:
	 	 	 
	 	By: 	 
	 	Name:
	 	Title:

 

	 	OCM PF/FF RADIO HOLDINGS PT, L.P.
	 	 	 
	 	By:	Oaktree Fund AIF Series, L.P. – Series D and
	 	 	Oaktree Fund AIF Series, L.P. – Series I
	 	Its:	General Partners
	 	 	 
	 	By:	Oaktree Fund GP AIF, LLC
	 	Its:	General Partner
	 	 	 
	 	By:	Oaktree Fund GP III, L.P.
	 	Its:	Managing Member

 

	 	By: 	 
	 	Name:
	 	Title:
	 	 	 
	 	By: 	 
	 	Name:
	 	Title:

 

Signature page to Selldown
Agreement

 

    	 

    	 

    

 

	 	FIVEWIRE MEDIA VENTURES LLC
	 	 	 
	 	By: 	 
	 	Name:
	 	Title:

 

Signature page to Selldown
Agreement

 

    	 

    	 

    

 

	 	 	 
	 	Steven Price	 
	 	 	 
	 	 	 
	 	Stuart Rosenstein	 
	 	 	 
	 	 	 
	 	Alex Berkett	 
	 	 	 
	 	 	 
	 	Dhruv Prasad	 
	 	 	 
	 	 	 
	 	Scott Schatz	 
	 	 	 
	 	 	 
	 	William Wilson	 
	 	 	 
	 	 	 
	 	Jared Willig	 
	 	 	 
	 	 	 
	 	Sun Sachs	 
	 	 	 
	 	 	 
	 	Erik Hellum	 
	 	 	 
	 	 	 
	 	Bob McCuin	 
	 	 	 
	 	 	 
	 	Mark Stewart	 
	 	 	 
	 	 	 
	 	Mike Josephs	 
	 	 	 
	 	 	 
	 	Claire Messner	 

 

Signature page to Selldown
Agreement

 

    	 

    	 

    

 

Schedule A

 

On file with the Company.

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