Document:

Exhibit 10.2

	 	 	 	 	 

Exhibit 10.2

RESTRICTED STOCK UNIT AWARD NOTICE

Restricted Stock Unit Award Notice under the UAL Corporation 2008 Incentive Compensation Plan,
dated as of «Date», between UAL Corporation, a Delaware
corporation (the “Company”), and «Name».

This Restricted Stock Unit Award Notice (the “Award Notice”) sets forth the terms and
conditions of an award of «RSUs» restricted stock units (the “Award”) that are subject to the terms and
conditions specified herein (“RSUs”) and that are granted to you under the UAL Corporation 2008
Incentive Compensation Plan (the “Plan”). This award constitutes an unfunded and unsecured promise
of the Company to deliver (or cause to be delivered to you), subject to the terms of this
Agreement, either a share of the Company’s Common Stock, $0.01 par value (a “Share”), or a cash
payment, for each RSU as set forth in Section 3 below.

SECTION 1. The Plan. This Award is made pursuant to the Plan, all the terms of which
are hereby incorporated in this Award Notice. In the event of any conflict between the terms of
the Plan and the terms of this Award Notice, the terms of the Plan shall govern.

SECTION 2. Definitions. Capitalized terms used in this Award Notice that are not
defined in this Award Notice have the meanings as used or defined in the Plan. As used in this
Award Notice, the following terms have the meanings set forth below:

“Vesting Date” means the date on which you become entitled to delivery of either
Shares or cash in settlement of the RSUs subject to this Award Notice, as provided in Section 3(a)
of this Award Notice.

SECTION 3. Vesting and Delivery. (a) Vesting. On each Vesting Date set
forth below, you shall become entitled to either delivery of Shares or a cash payment in settlement
of the number of RSUs that corresponds to such Vesting Date, as specified in the chart below,
provided that you must be actively employed by the Company or an Affiliate on the relevant Vesting
Date, except as otherwise determined by the Committee in its sole discretion, provided further
that, in the event of your Termination of Employment by reason of death or Disability, you shall
immediately become entitled to settlement of all outstanding RSUs.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Portion of the	 	 	 	 	 	 	 
	 	 	Award That	 	 	Number of RSUs	 	 	Aggregate Number of	 
	Scheduled
Vesting Date	 	Vests	 	 	That Vest	 	 	RSUs Vested	 
	«Vesting_Date»
	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

(b) Delivery of Shares or Cash Pursuant to Settlement of RSUs. The Committee shall,
in its sole discretion, determine whether the RSUs that are scheduled to be settled on each Vesting
Date will be settled in Shares or in cash. If the RSUs are settled in Shares, the Company shall
deliver to you, on such Vesting Date, one Share for each RSU that is scheduled to be settled on
such date in accordance with the terms of this Award Notice. If the RSUs are settled in cash, you
shall receive a lump sum cash payment on such Vesting Date, in accordance with the terms of this
Award Notice, equal to the closing price of the Company’s Common Stock on the Nasdaq Global Select
Market on the trading date immediately preceding the applicable Vesting Date, multiplied by the
number of RSUs that correspond to such date. Upon settlement, a number of RSUs equal to the number
of shares of Common Stock represented thereby shall be extinguished and such number of RSUs will no
longer be considered to be held by you for any purpose.

SECTION 4. Forfeiture of RSUs. Unless the Committee determines otherwise, and except
as otherwise provided in Section 3 of this Award Notice, Section 8 of the Plan regarding Change of
Control or Section 9(a) of the Plan regarding Termination of Employment as a result of death or
Disability, if the Vesting Date with respect to any RSUs awarded to you pursuant to this Award
Notice has not occurred prior to the date of your Termination of Employment, your rights with
respect to such RSUs shall immediately terminate upon your Termination of Employment, and you will
be entitled to no further payments or benefits with respect thereto.

SECTION 5. Voting Rights; Dividends. You do not have any of the rights of a
stockholder with respect to the RSUs granted to you pursuant to this Award Notice. Prior to the
date on which Shares (if any) are delivered to you in settlement of RSUs pursuant to this Award
Notice, you shall not be entitled to exercise any voting rights or to receive any dividends
declared or paid with respect to any Shares underlying such RSUs.

SECTION 6. Non-Transferability of RSUs. Unless otherwise provided by the Committee
in its discretion and notwithstanding clause (ii) of Section 10(a) of the Plan, prior to the date
that they become vested, RSUs may not be sold, assigned, alienated, transferred, pledged, attached
or otherwise encumbered by you, otherwise than by will or by the laws of descent and distribution,
and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance
shall be void and unenforceable against the Company, provided that the designation of a beneficiary
shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

SECTION 7. Withholding, Consents and Legends. (a) Withholding. The
delivery of Shares or cash pursuant to Section 3(b) of this Award Notice is conditioned on
satisfaction of any applicable withholding taxes in accordance with Section 10(d) of the Plan. If
the RSUs are settled in Shares, the Company will withhold from the number of Shares otherwise
deliverable to you pursuant to Section 3(b) a number of Shares having a Fair Market Value equal to
such withholding liability. If the RSUs are settled in cash, the Company will withhold from such
cash payment an amount equal to such withholding liability. The Company shall be authorized to
take such actions as the Company may deem necessary (including, without limitation, in accordance
with applicable law, withholding amounts from any compensation or other amounts owing from the
Company to you) to satisfy all obligations for the payment of such taxes.

 

 

 

(b) Consents. Your rights in respect of the RSUs are conditioned on the receipt to
the full satisfaction of the Committee of any required consents that the Committee may determine to
be necessary or advisable (including, without limitation, your consenting to the Company’s
supplying to any third-party recordkeeper of the Plan such personal information as the Committee
deems advisable to administer the Plan).

(c) Legends. The Company may affix to certificates for Shares (if any) issued
pursuant to this Award Notice any legend that the Committee determines to be necessary or advisable
(including to reflect any restrictions to which you may be subject under any applicable securities
laws). The Company may advise the transfer agent to place a stop order against any legended
Shares.

SECTION 8. Successors and Assigns of the Company. The terms and conditions of this
Award Notice shall be binding upon and shall inure to the benefit of the Company and its successors
and assigns.

SECTION 9. Committee Discretion. The Committee shall have full and plenary
discretion with respect to any actions to be taken or determinations to be made in connection with
this Award Notice, and its determinations shall be final, binding and conclusive.

SECTION 10. Amendment of this Award Notice. The Committee may waive any conditions
or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate this Award
Notice prospectively or retroactively; provided, however, that, except as set forth
in Section 10(e) of the Plan, any such waiver, amendment, alteration, suspension, discontinuance,
cancelation or termination that would materially and adversely impair your rights under this Award
Notice shall not to that extent be effective without your consent (it being understood,
notwithstanding the foregoing proviso, that this Award Notice and the RSUs shall be subject to the
provisions of Section 7(c) of the Plan).

IN WITNESS WHEREOF, the Company has duly executed this Award Notice as of the date first
written above.

	 	 	 	 	 
	 	UAL CORPORATION

 	 
	 	By:  	 
 	 
	 	 	Name:  	Glenn F. Tilton 	 
	 	 	Title:  	Chairman, President & CEOExhibit 4.1

Exhibit 4.1

Execution Version

WESTWOOD ONE, INC.

$117,500,000 15.00% Senior Secured Notes due July 15, 2012

SECURITIES PURCHASE AGREEMENT

Dated as of April 23, 2009

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	SECTION 1. BACKGROUND; AUTHORIZATION OF AMENDMENT AND RESTATEMENT; WAIVER OF DEFAULTS
	 	 	1	 
	Section 1.1. Background
	 	 	1	 
	Section 1.2. Company Request to Amend, Restate and Combine Certain Existing Debt and
Satisfy Other Debt; Requested Waivers
	 	 	2	 
	Section 1.3. Amendment and Restatement; Waiver of Defaults
	 	 	2	 
	Section 1.4. No New Debt or Novation
	 	 	3	 
	SECTION 2. RESTRUCTURING CLOSING
	 	 	3	 
	Section 2.1. Restructuring Effective Date
	 	 	3	 
	Section 2.2. Issuance of New Notes and Convertible Preferred Stock; Payment
	 	 	4	 
	SECTION 3. CONDITIONS TO RESTRUCTURING CLOSING
	 	 	5	 
	Section 3.1. Representations and Warranties
	 	 	5	 
	Section 3.2. Performance; No Default
	 	 	5	 
	Section 3.3. Compliance Certificates
	 	 	5	 
	Section 3.4. Opinions of Counsel
	 	 	6	 
	Section 3.5. Amendment and Restatement Permitted by Applicable Law, Etc.
	 	 	6	 
	Section 3.6. Anti-Trust Law Compliance
	 	 	6	 
	Section 3.7. Payment of Fees and Expenses
	 	 	6	 
	Section 3.8. Private Placement Number
	 	 	6	 
	Section 3.9. Changes in Corporate Structure
	 	 	7	 
	Section 3.10. Amended and Restated Guarantee
	 	 	7	 
	Section 3.11. Amended and Restated Intercreditor and Collateral Trust Agreement
	 	 	7	 
	Section 3.12. Subordination Agreements
	 	 	7	 
	Section 3.13. Amendment to Security Agreement
	 	 	7	 
	Section 3.14. Amendment to Trademarks Security Agreement
	 	 	8	 
	Section 3.15. Deed of Trust Modification (Culver City)
	 	 	8	 
	Section 3.16. Mortgage and Security Agreement Modifications (Helicopters)
	 	 	8	 
	Section 3.17. Master Mutual Release Agreement
	 	 	8	 
	Section 3.18. Investor Rights Agreement
	 	 	8	 

 

i 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	Section 3.19. Equity Contribution Documents; New Loan Agreement Documents
	 	 	9	 
	Section 3.20. Consummation of the Transaction
	 	 	9	 
	Section 3.21. Adverse Change; Approvals
	 	 	10	 
	Section 3.22. Litigation
	 	 	10	 
	Section 3.23. Administrative Agent Letter
	 	 	10	 
	Section 3.24. Proceedings and Documents
	 	 	10	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	10	 
	Section 4.1. Organization; Power and Authority
	 	 	10	 
	Section 4.2. Authorization, Etc.
	 	 	11	 
	Section 4.3. Disclosure
	 	 	11	 
	Section 4.4. Organization and Ownership of Shares of Subsidiaries
	 	 	11	 
	Section 4.5. Financial Statements; Projections
	 	 	12	 
	Section 4.6. Compliance with Laws, Other Instruments, Etc.
	 	 	12	 
	Section 4.7. Governmental Authorizations, Etc.
	 	 	13	 
	Section 4.8. Litigation; Observance of Statutes and Orders
	 	 	13	 
	Section 4.9. Taxes
	 	 	13	 
	Section 4.10. Title to Property; Leases
	 	 	14	 
	Section 4.11. Licenses, Permits, Etc.
	 	 	14	 
	Section 4.12. Compliance with ERISA
	 	 	14	 
	Section 4.13. Use of Proceeds; Margin Regulations
	 	 	14	 
	Section 4.14. Outstanding Debt
	 	 	15	 
	Section 4.15. Status under Certain Statutes
	 	 	15	 
	Section 4.16. Environmental Matters
	 	 	15	 
	Section 4.17. Perfection and Priority of Liens
	 	 	16	 
	Section 4.18. No Default
	 	 	16	 
	Section 4.19. Payment to Existing Credit Agreement Administrative Agent; Fees
	 	 	16	 
	SECTION 5. REPRESENTATIONS OF THE EXISTING CREDITORS
	 	 	16	 

 

ii 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	SECTION 6. INFORMATION AS TO COMPANY
	 	 	17	 
	Section 6.1. Financial and Business Information
	 	 	17	 
	Section 6.2. Officer’s Certificate
	 	 	20	 
	Section 6.3. Inspection
	 	 	20	 
	Section 6.4. Monthly Teleconference
	 	 	21	 
	SECTION 7. INTEREST; PREPAYMENT OF THE NOTES
	 	 	21	 
	Section 7.1. Interest
	 	 	21	 
	Section 7.2. Payment at Maturity
	 	 	22	 
	Section 7.3. Optional Prepayments
	 	 	22	 
	Section 7.4. Prepayment of Notes Upon a Change of Control
	 	 	23	 
	Section 7.5. Prepayment Under Amended and Restated Intercreditor and Collateral Trust Agreement
	 	 	23	 
	Section 7.6. Allocation of Partial Prepayments
	 	 	23	 
	Section 7.7. Maturity; Surrender, Etc.
	 	 	23	 
	Section 7.8. Purchase of Notes
	 	 	23	 
	SECTION 8. AFFIRMATIVE COVENANTS
	 	 	23	 
	Section 8.1. Compliance with Law
	 	 	23	 
	Section 8.2. Insurance
	 	 	24	 
	Section 8.3. Maintenance of Properties
	 	 	24	 
	Section 8.4. Payment of Taxes
	 	 	24	 
	Section 8.5. Corporate Existence, Etc.
	 	 	24	 
	Section 8.6. Additional Guarantors
	 	 	25	 
	Section 8.7. Sale of Culver City
	 	 	25	 
	Section 8.8. Further Assurances
	 	 	25	 
	SECTION 9. NEGATIVE COVENANTS
	 	 	26	 
	Section 9.1. Transactions with Affiliates
	 	 	26	 
	Section 9.2. Merger, Consolidation, Etc.
	 	 	27	 
	Section 9.3. Maintenance of Senior Debt Leverage Ratio
	 	 	27	 
	Section 9.4. Limitation on Debt
	 	 	28	 
	Section 9.5. Limitation on Liens
	 	 	28	 
	Section 9.6. Limitation on Investments
	 	 	30	 
	Section 9.7. Restricted Payments
	 	 	31	 

 

iii 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	Section 9.8. Line of Business
	 	 	31	 
	Section 9.9. Limitation on Sale of Assets
	 	 	31	 
	Section 9.10. Capital Expenditures; Acquisitions
	 	 	32	 
	Section 9.11. Limitation on Amendments to New Loan Agreement Documents
	 	 	32	 
	Section 9.12. No Unrestricted Subsidiaries
	 	 	32	 
	Section 9.13. Restrictive Agreements
	 	 	32	 
	SECTION 10. EVENTS OF DEFAULT
	 	 	33	 
	SECTION 11.
REMEDIES ON DEFAULT, ETC.
	 	 	36	 
	Section 11.1. Acceleration
	 	 	36	 
	Section 11.2. Other Remedies
	 	 	36	 
	Section 11.3. Rescission
	 	 	37	 
	Section 11.4. No Waivers or Election of Remedies, Expenses, Etc.
	 	 	37	 
	SECTION 12. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	 	 	37	 
	Section 12.1. Registration of Notes
	 	 	37	 
	Section 12.2. Transfer and Exchange of Notes
	 	 	38	 
	Section 12.3. Replacement of Notes
	 	 	39	 
	SECTION 13. PAYMENTS ON NOTES
	 	 	39	 
	Section 13.1. Place of Payment
	 	 	39	 
	Section 13.2. Home Office Payment
	 	 	40	 
	SECTION 14.
EXPENSES, ETC.
	 	 	40	 
	Section 14.1. Transaction Expenses
	 	 	40	 
	Section 14.2. Survival
	 	 	40	 
	SECTION 15. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
	 	 	41	 
	SECTION 16. AMENDMENT AND WAIVER
	 	 	41	 
	Section 16.1. Requirements
	 	 	41	 
	Section 16.2. Solicitation of Holders of Notes
	 	 	41	 
	Section 16.3. Binding Effect, Etc.
	 	 	42	 
	Section 16.4. Notes Held by Company, Etc.
	 	 	42	 
	SECTION 17. NOTICES
	 	 	43	 

 

iv 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	SECTION 18. REPRODUCTION OF DOCUMENTS
	 	 	43	 
	SECTION 19. CONFIDENTIAL INFORMATION
	 	 	44	 
	SECTION 20. MISCELLANEOUS
	 	 	45	 
	Section 20.1. Successors and Assigns
	 	 	45	 
	Section 20.2. Payments Due on Non-Business Days
	 	 	45	 
	Section 20.3. Severability
	 	 	45	 
	Section 20.4. Construction
	 	 	45	 
	Section 20.5. Counterparts
	 	 	45	 
	Section 20.6. Governing Law
	 	 	45	 
	Section 20.7. USA Patriot Act
	 	 	46	 
	Section 20.8. Certain Provisions Applicable to Gores Solely in Gores’ Capacity and
Status as a New Noteholder and Not in Any Other Capacity or Status
	 	 	46	 

 

v

 

	 	 	 	 	 
	SCHEDULE A

	 	—
	 	Information Relating to New Noteholders
	SCHEDULE A-1

	 	—
	 	Pre-Closing Existing Noteholders
	SCHEDULE A-2

	 	—
	 	Pre-Closing Existing Lenders
	SCHEDULE B

	 	—
	 	Defined Terms
	SCHEDULE B-1

	 	—
	 	Competitors
	SCHEDULE 3.9

	 	—
	 	Changes in Corporate Structure
	SCHEDULE 4.4

	 	—
	 	Subsidiaries of the Company and Ownership of Subsidiary Equity Interests
	SCHEDULE 4.5

	 	—
	 	Financial Statements
	SCHEDULE 4.8

	 	—
	 	Certain Litigation
	SCHEDULE 4.11

	 	—
	 	Intellectual Property
	SCHEDULE 8.7

	 	—
	 	Sale-Leaseback Transaction Terms
	SCHEDULE 9.4

	 	—
	 	Existing Capital Leases
	SCHEDULE 9.5

	 	—
	 	Existing Liens
	SCHEDULE 9.6(d)

	 	—
	 	Existing Investments
	SCHEDULE 9.6(e)

	 	—
	 	Investment
	SCHEDULE 9.9(e)

	 	—
	 	Helicopters
	EXHIBIT 1

	 	—
	 	Form of 15.00% Senior Secured Note due July 15, 2012
	EXHIBIT 3

	 	—
	 	Form of Creditors’ Certificate Regarding Closing Conditions
	EXHIBIT 3.3(a)

	 	—
	 	Form of Officer’s Certificate for the Company
	EXHIBIT 3.3(b)

	 	—
	 	Form of Secretary’s Certificate for the Obligors
	EXHIBIT 3.3(c)

	 	—
	 	Form of Officer’s Certificate for each Subsidiary Guarantor
	EXHIBIT 3.4(a)

	 	—
	 	Form of Opinion of Special Counsel for the Company and the Subsidiary Guarantors
	EXHIBIT 3.4(b)

	 	—
	 	Form of Opinion of General Counsel for the Company and the Subsidiary Guarantors
	EXHIBIT 3.4(c)

	 	—
	 	Form of Opinion of Weissman, Wolff, Bergman, Coleman, Grodin & Evall LLP, local
counsel for the Company with respect to the Deed of Trust
Modification

	EXHIBIT 3.4(d)

	 	—
	 	Form of
Opinion of Daugherty, Fowler, Peregrin, Haught & Jensen with
respect to the Mortgage Modification

	EXHIBIT 3.10

	 	—
	 	Form of Amended and Restated Guarantee
	EXHIBIT 3.11

	 	—
	 	Amended and Restated Intercreditor and Collateral Trust Agreement
	EXHIBIT 3.12A

	 	—
	 	Form of New Term Loan Subordination Agreement
	EXHIBIT 3.12B

	 	—
	 	Form of Gores Subordination Agreement
	EXHIBIT 3.13

	 	—
	 	Form of Amendment to Security Agreement
	EXHIBIT 3.14

	 	—
	 	Form of Amendment to Trademarks Security Agreement
	EXHIBIT 3.15A

	 	—
	 	Form of Deed of Trust Modification
	EXHIBIT 3.15B

	 	—
	 	Form of Endorsement
	EXHIBIT 3.15C

	 	—
	 	Form of Estoppel Certificate
	EXHIBIT 3.16A

	 	—
	 	Form of Mortgage Modification
	EXHIBIT 3.16B

	 	—
	 	Form of April Mortgage Modification
	EXHIBIT 3.17

	 	—
	 	Form of Master Mutual Release Agreement
	EXHIBIT 3.18

	 	—
	 	Form of Investor Rights Agreement
	EXHIBIT 3.19

	 	—
	 	Certain Transaction Documents

 

vi 

 

WESTWOOD ONE, INC.

40 WEST 57TH STREET, 5TH FLOOR

NEW YORK, NEW YORK 10019

15.00% Senior Secured Notes due July 15, 2012

Dated as of

April 23, 2009

TO THE PARTIES LISTED IN

THE ATTACHED SCHEDULE A:

Ladies and Gentlemen:

WESTWOOD ONE, INC., a Delaware corporation (the “Company”), agrees with each of you as
follows:

			
	SECTION 1.	 	BACKGROUND; AUTHORIZATION OF
AMENDMENT AND RESTATEMENT; WAIVER OF DEFAULTS.

Section 1.1. Background.

The Company is currently a party to (a) that certain Note Purchase Agreement, dated as of
December 3, 2002 (as heretofore amended, restated, supplemented or otherwise modified, the
“Existing Note Purchase Agreement”), between the Company and the various financial institutions
that are a party thereto, pursuant to which the Company issued (i) $50,000,000 aggregate principal
amount of its 4.64% Senior Guaranteed Notes, Series A, due November 30, 2009 (the “Existing Series
A Notes”) and (ii) $150,000,000 aggregate principal amount of its 5.26% Senior Guaranteed Notes,
Series B, due November 30, 2012 (the “Existing Series B Notes”; the Existing Series A Notes and the
Existing Series B Notes being hereinafter collectively referred to as the “Existing Notes”), and
(b) that certain Credit Agreement, dated as of March 3, 2004 (as heretofore amended, restated,
supplemented or otherwise modified, the “Existing Credit Agreement”), among the Company, the
Subsidiary Guarantors identified as such therein, the various financial institutions that are
parties thereto immediately prior to the Purchase Transaction (the “Pre-Closing Existing Lenders”),
and JPMorgan Chase Bank, N.A., as Administrative Agent thereunder (the “Existing Credit Agreement
Administrative Agent”), pursuant to which there is outstanding (i) $9,000,000 aggregate principal
amount of Revolving Credit Loans, as defined thereunder, and (ii) $32,000,000 aggregate principal
amount of Term Loans, as defined thereunder (together with the Revolving Credit Loans, the
“Existing Loans”). The holders of the Existing Notes immediately prior to Purchase Transaction
(the “Pre-Closing Existing Noteholders” and together with the Pre-Closing Existing Lenders, the
“Pre-Closing Existing Creditors”), and the respective principal amounts of Existing Notes held by
each Pre-Closing Existing Noteholder, are set forth on Schedule A-1 attached hereto. The
Pre-Closing Existing Lenders, and the respective principal amounts of Debt outstanding under the
Existing Credit Agreement held by each of them, are set forth on Schedule A-2 attached hereto.
Gores Radio (to the extent it purchases Existing Loans in the Purchase Transaction) and the
Pre-Closing Existing Lenders that have not agreed to participate in the Purchase Transaction are
referred to herein as the “Existing Lenders”; Gores Radio (to the extent it purchases Existing
Notes in the Purchase Transaction) and the Pre-Closing Existing Noteholders that have not agreed to
participate in the Purchase Transaction are referred to herein as the “Existing Noteholders”; and
the Existing Lenders and the Existing Noteholders are referred to herein, collectively, as the
“Existing Creditors.” Certain capitalized terms used in this Agreement are defined in Schedule B;
references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an
Exhibit attached to this Agreement; references to Sections are, unless otherwise specified, to
Sections of this Agreement.

 

 

 

Section 1.2. Company Request to Amend, Restate and Combine Certain Existing Debt and Satisfy
Other Debt; Requested Waivers.

The Company has requested that the Existing Creditors agree to:

(a) amend, restate and combine the Existing Note Purchase Agreement and the Existing
Credit Agreement, as set forth in this Agreement;

(b) (i) amend and restate the Existing Notes and the Existing Loans, as set forth in
the Notes, and (ii) to combine $117,500,000 in principal amount of the Existing Debt (the
“Continuing Debt”) into, and evidence such Continuing Debt by, the Notes (the actions
referred to in this Section 1.2(b) being referred to, collectively, as the “Amendment,
Restatement and Combination Transactions”); and

(c) satisfy all Existing Debt (other than the Continuing Debt) (all such satisfied
amounts, the “Satisfied Existing Debt”), by issuance of the Convertible Preferred Stock, and
payment of the amount, specified in Section 2.2(a)(i)(B) and Section 2.2(a)(ii),
respectively (such satisfaction, issuance and payment being referred to, collectively, as
the “Satisfaction Transactions”).

In addition, the Company has requested the Existing Creditors to waive all Defaults and Events
of Default (as such terms are defined in the Existing Note Purchase Agreement and the Existing
Credit Agreement) that exist as of the Restructuring Effective Date, whether known or unknown
(collectively, the “Requested Waivers”). The Existing Creditors are willing to grant the Requested
Waivers on the terms and conditions set forth in this Agreement.

Section 1.3. Amendment and Restatement; Waiver of Defaults.

(a) Subject to the satisfaction (or waiver) of the conditions precedent set forth in
Section 3, each of the Existing Creditors, by its execution of this Agreement, hereby agrees
and consents to the Amendment, Restatement and Combination Transactions and the Satisfaction
Transactions. Upon the Restructuring Closing and at the Restructuring Effective Date, (i)
the Existing Note Purchase Agreement and the Existing Credit Agreement shall be deemed to
have been amended and restated by, and combined into, this Agreement, (ii) $117,500,000 in
aggregate principal amount of the Existing Debt shall be deemed to have been amended and
restated by, and such Existing Debt shall be deemed to have been combined into, the Notes,
(iii) all Existing Debt (other than the Continuing Debt) shall be deemed to have been
satisfied in full by issuance of the Convertible Preferred Stock and payment of the amount specified in Section 2.2(a)(ii)
and (iv) no obligation of any kind shall be outstanding under the Existing Credit Agreement,
the Existing Note Purchase Agreement or any other document or instrument entered into in
connection with the Existing Debt except as set forth in this Agreement and the documents
executed in connection herewith (including the Master Mutual Release Agreement).

 

2

 

(b) Subject to satisfaction (or waiver) of the conditions precedent set forth in
Section 3, upon the Restructuring Closing (a) each Existing Noteholder hereby waives all
Defaults and Events of Default (as such terms are defined in the Existing Note Purchase
Agreement), known or unknown, arising under the Existing Note Purchase Agreement (and the
other agreements, documents and instruments executed and/or delivered in connection
therewith) that have occurred prior to or as of the Restructuring Effective Date, and (b)
each Existing Lender hereby waives all Defaults and Events of Default (as such terms are
defined in the Existing Credit Agreement), known or unknown, arising under the Existing
Credit Agreement (and the other agreements, documents and instruments executed and/or
delivered in connection therewith) that have occurred prior to or as of the Restructuring
Effective Date.

Section 1.4. No New Debt or Novation.

The parties hereto specifically agree and confirm that the Amendment, Restatement and
Combination Transactions effected hereby and by the Notes shall in no way evidence a new debt of
the Company or a novation of the Existing Debt, but rather that $117,500,000 aggregate principal
amount of the Existing Debt (which constitutes the Continuing Debt) is continued in full force and
effect on the terms and conditions set forth in this Agreement. All amounts owing by the Company
in respect of the Existing Debt to the extent it has become Continuing Debt by virtue of the
Amendment, Restatement and Combination Transactions shall continue to be owing under, and shall
after the Restructuring Effective Date be evidenced by, this Agreement and the Notes (without any
further action required on the part of any Person), and shall be payable in accordance with this
Agreement and the Notes.

SECTION
2. RESTRUCTURING CLOSING.

Section 2.1. Restructuring Effective Date.

Unless the parties hereto otherwise agree, the closing (the “Restructuring Closing”) of the
transactions contemplated by this Agreement shall occur at the offices of Bingham McCutchen LLP,
399 Park Avenue, New York, New York 10022, at 10:00 A.M., Eastern time, on April 23, 2009 (the
“Restructuring Effective Date”).

 

3

 

Section 2.2. Issuance of New Notes and Convertible Preferred Stock; Payment.

(a) Subject to the terms and conditions hereof, at the Restructuring Closing, the
Company will:

(i) deliver to the Existing Noteholders’ special counsel, Bingham
McCutchen LLP, 399 Park Avenue, New York, New York 10022, on behalf of each
Existing Lender and each Existing Noteholder,

(A) one or more new promissory notes in the form of Exhibit 1 hereto
(as may be amended, restated, supplemented or modified from time to time,
the “Notes”), in the denominations specified opposite the name of each
Existing Lender or Existing Noteholder on Schedule A attached hereto (each
Existing Lender and Existing Noteholder, in its capacity as a holder of such
Notes, being referred to as a “New Noteholder” or a “holder of Notes”),
dated as of the Restructuring Effective Date and payable to such New
Noteholder or as otherwise indicated on Schedule A hereto;

(B) one or more certificates (as set forth on Schedule A hereto),
issued in the name of each New Noteholder (or as otherwise indicated on
Schedule A hereto), representing the number of shares of Convertible
Preferred Stock specified opposite the name of such New Noteholder on
Schedule A attached hereto; and

(ii) pay to each New Noteholder, by wire transfer of immediately available
funds to the account identified on Schedule A hereto, the amount specified opposite
the name of such New Noteholder on such Schedule (it being understood that the
aggregate amount to be paid to all New Noteholders pursuant to this Section
2.2(a)(ii) shall be $25,000,000).

(b) For the avoidance of doubt, the aggregate principal amount of the Notes, the number
of shares of Convertible Preferred Stock and the portion of the $25,000,000 payment referred
to in Section 2.2(a)(ii), in each case to be issued or paid to a New Noteholder, shall be
equal to its ratable share thereof, determined by reference to its ratable share of the
Satisfied Existing Debt.

(c) Subject to the terms and conditions hereof, at the Restructuring Closing, each
Existing Noteholder will deliver to the Company the Existing Notes identified as held by
such Existing Noteholder, if any, on Schedule A-1 hereto (or an affidavit as to the loss of
such Existing Notes in the manner prescribed by Section 12.3 of this Agreement).

 

4

 

SECTION 3. CONDITIONS TO RESTRUCTURING CLOSING.

The effectiveness of the Amendment, Restatement and Combination Transactions, and of the
Satisfaction Transactions, and the obligations of each Existing Creditor in respect thereof, is
subject to the waiver or fulfillment to the satisfaction of each Existing Creditor (as certified,
to the extent specified therein, by such Existing Creditor in a certificate substantially in the
form attached hereto as Exhibit 3 delivered at the Closing), prior to or at the Restructuring
Closing, of the following conditions, and the failure by the Company to satisfy all such conditions
(that have not been waived) prior to or at the Restructuring Closing shall relieve the Existing
Creditors, at their respective election, of all such obligations:

Section 3.1. Representations and Warranties. The representations and warranties of the
Company and the Subsidiary Guarantors in this Agreement, the Amended and Restated Guarantee and the
other Financing Documents shall be correct when made and at the time of the Restructuring Closing.

Section 3.2. Performance; No Default. The Company shall have performed and complied with all
agreements and conditions contained in this Agreement required to be performed or complied with by
the Company prior to or at the Restructuring Closing, and after giving effect to the Amendment,
Restatement and Combination Transactions, and the Satisfaction Transactions, and the grant of the
Requested Waivers, no Default or Event of Default shall have occurred and be continuing.

Section 3.3. Compliance Certificates.

(a) Officer’s Certificate. The Company shall have delivered to each Existing Creditor
an Officer’s Certificate, in substantially the form attached as Exhibit 3.3(a), dated the
Restructuring Effective Date, certifying that the conditions specified in Sections 3.1 (as
to the Company), 3.2, 3.9, 3.20(b)(i), 3.20(b)(ii), 3.20(b)(iv), 3.21 and 3.22 have been
fulfilled.

(b) Secretary’s Certificate. The Obligors shall have delivered to each Existing
Creditor a Secretary’s Certificate, in substantially the form attached as Exhibit 3.3(b),
dated the Restructuring Effective Date, certifying as to (i) each Obligor’s Governing
Documents (which Governing Documents (or forms thereof) have been previously provided to
each of the Existing Creditors), (ii) the resolutions of each Obligor’s Board of Directors
(or similar governing body) authorizing the execution, delivery and performance of this
Agreement and the other Financing Documents, the Equity Contribution Documents and the New
Loan Agreement Documents, in each case, to which such Obligor is a party and (iii) specimen
signatures of the persons authorized to execute such documents on such Obligor’s behalf.
Each Existing Creditor shall also have received a copy of the certificate of good standing
for each Obligor (dated no earlier than 30 days prior to the Restructuring Effective Date)
from the office of the secretary of the state of such Obligor’s organization.

(c) Officer’s Certificate of the Subsidiary Guarantors. Each Subsidiary Guarantor
shall have delivered to each Existing Creditor an Officer’s Certificate, in substantially
the form attached as Exhibit 3.3(c), dated the Restructuring Effective Date, certifying that
the condition specified in Section 3.1 (as to such Subsidiary Guarantor) has been fulfilled.

 

5

 

Section 3.4. Opinions of Counsel. Each Existing Creditor shall have received an opinion in
form and substance satisfactory to such Existing Creditor, dated the Restructuring Effective Date,
from (a) Skadden, Arps, Slate, Meagher & Flom LLP, special counsel for the Company and the
Subsidiary Guarantors, in substantially the form attached hereto as Exhibit 3.4(a) (and the Company
hereby instructs its counsel to deliver such opinion to each Existing Creditor), (b) David Hillman,
General Counsel for the Company and the Subsidiary Guarantors, in substantially the form attached hereto as Exhibit 3.4(b) (and the Company hereby instructs
its counsel to deliver such opinion to each Existing Creditor), (c) Bingham McCutchen LLP, special
counsel to the Existing Noteholders, addressing such matters as the Existing Noteholders may
reasonably request and (d) Weissman, Wolff, Bergman, Coleman, Grodin & Evall LLP, local counsel for
the Company with respect to the Deed of Trust Modification, in substantially the form attached
hereto as Exhibit 3.4(c) (and the Company hereby instructs its counsel to deliver such opinion to
each Existing Creditor). In addition, Daugherty, Fowler, Peregrin, Haught & Jensen shall have
given oral confirmation, that it will be able to deliver an opinion with respect to the Mortgage
Modification in substantially the form attached hereto as Exhibit 3.4(d).

Section 3.5. Amendment and Restatement Permitted by Applicable Law, Etc. On the Restructuring
Effective Date the Amendment, Restatement and Combination Transactions, and the Satisfaction
Transactions, shall (a) be permitted by the laws and regulations of each jurisdiction to which each
Existing Creditor is subject (without recourse to provisions (such as Section 1405(a)(8) of the New
York Insurance Law) permitting limited investments by insurance companies without restriction as to
the character of the particular investment), (b) not violate any applicable law or regulation
(including, without limitation, Regulation T, U or X of the Board of Governors of the Federal
Reserve System) and (c) not subject such Existing Creditor to any tax, penalty or liability under
or pursuant to any applicable law or regulation. If requested by any Existing Creditor, such
Existing Creditor shall have received an Officer’s Certificate from the Company and each Subsidiary
Guarantor certifying as to such matters of fact regarding the Company and its Subsidiaries as such
Existing Creditor may reasonably specify to enable such Existing Creditor to determine whether such
investment is so permitted.

Section 3.6. Anti-Trust Law Compliance. The applicable waiting period under HSR Act shall
have expired and any authorizations, permits or clearances from the Department of Justice and the
Federal Trade Commission that are required in connection with the consummation of the New Gores
Equity Investment shall have been obtained and each Existing Creditor shall have received evidence
of such in form and substance reasonably acceptable to such Existing Creditor.

Section 3.7. Payment of Fees and Expenses. Without limiting the provisions of Section 14.1,
the Company shall have paid on or before the Restructuring Effective Date the reasonable fees,
charges and disbursements of (a) the Existing Noteholders’ counsel, Bingham McCutchen LLP, and
financial advisor, Conway, Del Genio, Gries, & Co., LLC, and (b) Milbank, Tweed, Hadley & McCloy
LLP and Capstone Advisory Group, LLC, each to the extent incurred in connection with the
transactions contemplated hereby and reflected in a statement of such counsel or financial advisor
rendered to the Company at least one Business Day prior to the Restructuring Effective Date.

Section 3.8. Private Placement Number. A Private Placement Number issued by Standard & Poor’s
CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National
Association of Insurance Commissioners) shall have been obtained for the Notes and the Convertible
Preferred Stock.

 

6

 

Section 3.9. Changes in Corporate Structure. Except as set forth on Schedule 3.9, the Company
shall not have changed its jurisdiction of incorporation or been a party to any merger or
consolidation and shall not have succeeded to all or any substantial part of the liabilities of any
other entity, at any time following the date of the most recent financial statements referred to in
Schedule 4.5.

Section 3.10. Amended and Restated Guarantee. The Existing Creditors shall have received a
copy of the Amended and Restated Guarantee, dated as of the Restructuring Effective Date, duly
executed by the Subsidiary Guarantors in substantially the form of Exhibit 3.10 (the “Amended and
Restated Guarantee”), and, as of the Restructuring Effective Date, the Amended and Restated
Guarantee shall be in full force and effect.

Section 3.11. Amended and Restated Intercreditor and Collateral Trust Agreement. The Company,
the Subsidiary Guarantors, Gores Radio, each other Existing Creditor and the Collateral Trustee
shall have duly executed and delivered the Amended and Restated Intercreditor and Collateral Trust
Agreement, dated as of the Restructuring Effective Date, in substantially the form of Exhibit 3.11
(as the same may be amended, restated or modified from time to time in accordance with its terms,
the “Amended and Restated Intercreditor and Collateral Trust Agreement”) and, as of the
Restructuring Effective Date, the Amended and Restated Intercreditor and Collateral Trust Agreement
shall be in full force and effect.

Section 3.12. Subordination Agreements.

(a) The Company, the Subsidiary Guarantors, Wells Fargo Foothill, LLC, and each
Existing Creditor shall have duly executed and delivered the New Term Loan Subordination
Agreement, dated as of the Restructuring Effective Date, in substantially the form of
Exhibit 3.12A (as the same may be amended, restated or modified from time to time in
accordance with its terms, the “New Term Loan Subordination Agreement”), and, as of the
Restructuring Effective Date, the New Term Loan Subordination Agreement shall be in full
force and effect.

(b) The Company, the Subsidiary Guarantors, each Gores Party and each Existing Creditor
shall have duly executed and delivered the Subordination Agreement, dated as of the
Restructuring Effective Date, in substantially the form of Exhibit 3.12B (as the same may be
amended, restated or modified from time to time in accordance with its terms, the “Gores
Subordination Agreement”), and, as of the Restructuring Effective Date, the Gores
Subordination Agreement shall be in full force and effect.

Section 3.13. Amendment to Security Agreement. The Existing Creditors shall have received a
copy of the Amendment to Security Agreement, dated as of the Restructuring Effective Date, duly
executed by the Company, the Subsidiary Guarantors and the Collateral Trustee in substantially the
form of Exhibit 3.13 (the “Security Agreement Amendment”), and, as of the Restructuring Effective
Date, the Security Agreement Amendment shall be in full force and effect.

 

7

 

Section 3.14. Amendment to Trademarks Security Agreement. The Existing Creditors shall have
received a copy of the Amendment to Trademarks Security Agreement, dated as of the Restructuring
Effective Date, duly executed by the Company, Metro Networks Communications, Inc. and the
Collateral Trustee in substantially the form of Exhibit 3.14 (the “Amendment to Trademarks Security
Agreement”), and, as of the Restructuring Effective Date, the Amendment to Trademarks Security
Agreement shall be in full force and effect.

Section 3.15. Deed of Trust Modification (Culver City). The Existing Creditors shall have
received a copy of the First Amendment to Shared Deed of Trust, Assignment of Rents, Security
Agreement and Fixture Filing, dated as of the Restructuring Effective Date, duly executed by the
Company in substantially the form of Exhibit 3.15A (the “Deed of Trust Modification”), and, as of
the Restructuring Effective Date, the Deed of Trust Modification shall be in full force and effect.
In addition, the Existing Creditors shall have received (a) such endorsements with respect to the
title insurance policy issued in respect of the Deed of Trust modified by the Deed of Trust
Modification in substantially the form of Exhibit 3.15B and (b) an estoppel certificate in
substantially the form of Exhibit 3.15C with respect to the Parking Agreement (as defined in the
Deed of Trust).

Section 3.16. Mortgage and Security Agreement Modifications (Helicopters).

(a) The Existing Creditors shall have received a copy of the Amendment to Mortgage and
Security Agreement, dated as of the Restructuring Effective Date, duly executed by the
Company and the Collateral Trustee in substantially the form of Exhibit 3.16A (the “Mortgage
Modification”), and, as of the Restructuring Effective Date, the Mortgage Modification shall
be in full force and effect.

(b) The Existing Creditors shall have received a copy of the Amendment to Mortgage and
Security Agreement, dated as of the Restructuring Effective Date, duly executed by the
Company and the Collateral Trustee in substantially the form of Exhibit 3.16B (the “April
Mortgage Modification”), and, as of the Restructuring Effective Date, the April Mortgage
Modification shall be in full force and effect.

Section 3.17. Master Mutual Release Agreement. The Company, the Subsidiary Guarantors, Gores
Radio and each other Existing Creditor shall have duly executed and delivered the Master Mutual
Release Agreement, dated as of the Restructuring Effective Date, in substantially the form of
Exhibit 3.17 (the “Master Mutual Release Agreement”), and, as of the Restructuring Effective Date,
the Master Mutual Release Agreement shall be in full force and effect.

Section 3.18. Investor Rights Agreement. Gores Radio, the Company and each other Existing
Creditor shall have duly executed and delivered an Investor Rights Agreement, dated as of the
Restructuring Effective Date, in substantially the form of Exhibit 3.18 (as the same may be
amended, restated or modified from time to time in accordance with its terms, the “Investor Rights
Agreement”), and, as of the Restructuring Effective Date, the Investor Rights Agreement shall be in
full force and effect.

 

8

 

Section 3.19. Equity Contribution Documents; New Loan Agreement Documents. The Existing
Creditors shall have received true and correct copies of the following documents, certified as such
by a Responsible Officer of the Company:

(a) the Equity Contribution Documents; and

(b) the New Loan Agreement Documents;

a copy of each which is attached as Exhibit 3.19 and each of which, as of the Restructuring
Effective Date, shall be in full force and effect.

Section 3.20. Consummation of the Transaction.

(a) Prior to the Restructuring Effective Date, Gores Radio shall have agreed to
purchase (the “Purchase Transaction”) from the Pre-Closing Existing Creditors identified on
Schedule A-1 or Schedule A-2, as the case may be, as Pre-Closing Existing Creditors that
will sell their Existing Debt, in cash at the Restructuring Closing, the Existing Debt of
such Pre-Closing Existing Creditors for an amount in cash equal to (A) in the case of the
Existing Noteholders, $0.28 for each $1.00 of the outstanding principal of, and accrued and
unpaid interest on, the Existing Notes held by the Existing Noteholders as of the
Restructuring Effective Date, and (B) in the case of the Existing Lenders, $0.28 for each
$1.00 of the outstanding principal of the Existing Debt held by the Existing Lenders as of
the Restructuring Effective Date plus $1.00 for each $1.00 of accrued and unpaid
interest on such outstanding principal. The Purchase Transaction shall be consummated
immediately prior to the Restructuring Closing. Gores Radio and each other Existing Lender
hereby agrees that it shall be deemed to have consented to the transfer of any Revolving
Credit Commitment (as such term is defined in the Existing Credit Agreement) or Loans (as
such term is defined in the Existing Credit Agreement) to Gores Radio by any Pre-Closing
Existing Lender to the Existing Credit Agreement.

(b) On the Restructuring Effective Date, (i) the full amount of the New Term Loan shall
be advanced to the Company under the New Loan Agreement, (ii) the Company shall be able to
satisfy all conditions to borrowing in respect of the New Revolver (regardless of whether it
actually borrows thereunder on the Restructuring Effective Date), (iii) Gores Radio shall
consummate the Purchase Transaction, (iv) Gores Radio shall purchase Convertible Preferred
Stock from the Company for $25,000,000 (the “New Gores Equity Investment”) and (v) the
Company shall pay a fee to the Existing Credit Agreement Administrative Agent in the amount
specified in the Administrative Agent Letter and the Existing Creditors shall have received
a copy of such Administrative Agent Letter on or prior to the Restructuring Effective Date.

(c) On the Restructuring Effective Date, immediately prior to the consummation of the
Purchase Transaction, the Company will pay to the Existing Lenders all accrued and unpaid
interest on the Existing Debt held by them.

 

9

 

Section 3.21. Adverse Change; Approvals.

(a) Since the date of this Agreement, nothing shall have occurred which has had, or
could reasonably be expected to have a Material Adverse Effect.

(b) On or prior to the Restructuring Effective Date, all necessary governmental and
material third party approvals and/or consents (if any) in connection with the Transaction,
the other transactions contemplated hereby and the continuation of Liens under the Financing
Documents shall have been obtained and remain in effect, and all applicable waiting periods
with respect thereto shall have expired without any action being taken by any competent
authority which restrains, prevents or imposes materially adverse conditions upon the
consummation of the Transaction or the other transactions contemplated by the Financing
Documents or otherwise referred to herein or therein.

Section 3.22. Litigation.

(a) There shall be no actions, suits or proceedings pending or threatened in writing
with respect to the Transaction, this Agreement or any other Financing Document.

(b) There shall not exist any judgment, order, injunction or other restraint issued or
filed, or a hearing seeking injunctive relief or other restraint pending or notified,
prohibiting or imposing materially adverse conditions upon the Transaction.

Section 3.23. Administrative Agent Letter. Each Existing Noteholder shall have received a
copy of the Administrative Agent Letter, provided that each Existing Noteholder agrees not to
disclose the terms or substance of such Administrative Agent Letter to any Person other than its
officers, directors, employees, counsel and financial advisor on a confidential basis.

Section 3.24. Proceedings and Documents. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and instruments incident to
such transactions shall be satisfactory to each Existing Creditor and its counsel, and each
Existing Creditor and its counsel shall have received copies of all such counterpart originals or
certified or other copies of such documents as such Existing Creditor or its counsel may reasonably
request.

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company represents and warrants to each Existing Creditor that:

Section 4.1. Organization; Power and Authority. The Company is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of incorporation, and is
duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so
qualified or in good standing would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company has the corporate power and authority to own or
hold under lease the properties it purports to own or
hold under lease, to transact the business it transacts and proposes to transact, to execute
and deliver this Agreement and the other Transaction Documents to which it is a party and to
perform the provisions hereof and thereof.

 

10

 

Section 4.2. Authorization, Etc.

(a) This Agreement, the Notes and the other Transaction Documents to which the Company
is a party have been duly authorized by all necessary corporate action on the part of the
Company, and this Agreement constitutes, and upon execution and delivery thereof each other
Transaction Document to which the Company is a party will constitute, a legal, valid and
binding obligation of the Company enforceable against the Company in accordance with its
terms, except as such enforceability may be limited by (i) applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and (ii) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

(b) The Amended and Restated Guarantee and the other Transaction Documents to which the
Subsidiary Guarantors are a party have been duly authorized by all necessary corporate or
other action on the part of each Subsidiary Guarantor, and upon the execution and delivery
thereof the Amended and Restated Guarantee and each such other Transaction Document will
constitute a legal, valid and binding obligation of such Subsidiary Guarantor enforceable
against such Subsidiary Guarantor in accordance with its terms, except as such
enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights generally
and (ii) general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

Section 4.3. Disclosure. The Transaction Documents and the certificates or other writings
delivered in connection with the Satisfaction Transactions to each Existing Creditor by or on
behalf of the Company in connection with the transactions contemplated hereby and the financial
statements listed in Schedule 4.5, taken as a whole, do not contain any untrue statement of a
material fact or omit to state any material fact necessary to make the statements therein not
misleading in light of the circumstances under which they were made (it being understood that the
Company makes no representation or warranty as to the accuracy of the projections except to the
extent provided in Section 4.5(b)).

Section 4.4. Organization and Ownership of Shares of Subsidiaries.

(a) Schedule 4.4 is a complete and correct list of the Company’s Subsidiaries, showing,
as to each Subsidiary, the correct name thereof, the jurisdiction of its organization and
the percentage of shares of each class of its outstanding Equity Interests owned by the
Company and each other Subsidiary.

(b) All of the outstanding Equity Interests of each Subsidiary shown in Schedule 4.4 as
being owned by the Company and its Subsidiaries have been validly
issued, are fully paid and nonassessable and are owned by the Company or another
Subsidiary free and clear of any Lien (except for Liens created by the Security Documents,
transfer restrictions imposed by relevant state or federal securities laws, non-consensual
Liens permitted under Section 9.5 arising by operation of law or as otherwise disclosed in
Schedule 4.4).

 

11

 

(c) Each Subsidiary identified in Schedule 4.4 is a corporation or other legal entity
duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal entity and is in
good standing in each jurisdiction in which such qualification is required by law, other
than those jurisdictions as to which the failure to be so qualified or in good standing
would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. Each Subsidiary has the corporate or other power and authority to own or
hold under lease the properties it purports to own or hold under lease and to transact the
business it transacts and proposes to transact.

Section 4.5. Financial Statements; Projections.

(a) The Company has delivered to each Existing Creditor copies of the consolidated
financial statements of the Company listed on Schedule 4.5. All of said financial
statements (including, without limitation, in each case the related schedules and notes)
fairly present in all material respects the consolidated financial position of the Company
and its Subsidiaries as of the respective dates specified in such financial statements and
the consolidated results of their operations and cash flows for the respective periods so
specified and have been prepared in accordance with GAAP consistently applied throughout the
periods involved except as set forth in the notes thereto (subject, in the case of any
interim financial statements, to normal year-end adjustments).

(b) The projections that were prepared by or on behalf of the Company in connection
with the Transaction and delivered to the Existing Creditors on March 20, 2009 were prepared
in good faith and are based on assumptions and information believed by the Company to be
reasonable at the time such projections were prepared.

Section 4.6. Compliance with Laws, Other Instruments, Etc. The execution, delivery and
performance by the Company and the Subsidiary Guarantors of this Agreement and each of the other
Transaction Documents to which they are parties will not (a) contravene, result in any breach of,
or constitute a default under, or result in the creation of any Lien in respect of any property of
the Company or any Subsidiary under, any (i) indenture, mortgage, deed of trust, loan, purchase or
credit agreement, lease or any other Material agreement or instrument to which the Company or any
Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties
may be bound or affected (other than Liens created pursuant to the Security Documents), or (ii)
corporate charter or by-laws of the Company or a Subsidiary, (b) conflict with or result in a
breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of
any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (c)
except with respect to Federal Communications Commission
licenses held by the Company and its Subsidiaries (the “FCC Licenses”), violate any provision
of any statute or other rule or regulation of any Governmental Authority applicable to the Company
or any Subsidiary.

 

12

 

Section 4.7. Governmental Authorizations, Etc. Assuming the representations of each of the
Existing Creditors in Section 5 are correct, no consent, approval or authorization of, or
registration, filing or declaration with, any Governmental Authority is required in connection with
the execution, delivery or performance by the Company of this Agreement, the Notes or the other
Transaction Documents and the consummation of the Transaction, except for (i) notification filings
under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended (the “HSR Act”) with the
United States Department of Justice and the Federal Trade Commission, (ii) filings or notifications
pursuant to Rule 14f-1 of the Exchange Act, (iii) filings of appropriate counterparts of this
Agreement and other information as required by applicable foreign, Federal and state securities
law, (iv) with respect to FCC Licenses, filings with, and consents from, the Federal Communications
Commission in connection with a transfer of control and (v) all filings and other actions
contemplated by the Security Documents.

Section 4.8. Litigation; Observance of Statutes and Orders.

(a) Except as disclosed in Schedule 4.8, there are no actions, suits or proceedings
pending or, to the knowledge of the Company, threatened against or affecting the Company or
any Subsidiary or any property of the Company or any Subsidiary in any court or before any
arbitrator of any kind or before or by any Governmental Authority that, individually or in
the aggregate, would reasonably be expected to have a Material Adverse Effect.

(b) Neither the Company nor any Subsidiary is in default under any order, judgment,
decree or ruling of any court, arbitrator or Governmental Authority or is in violation of
any applicable law, ordinance, rule or regulation (including without limitation
Environmental Laws) of any Governmental Authority, which default or violation, individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

Section 4.9. Taxes. The Company and its Subsidiaries have filed all income tax returns that
are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments payable by them, to the extent such
taxes and assessments have become due and payable and before they have become delinquent, except
for any taxes and assessments (a) the amount of which is not individually or in the aggregate
Material or (b) the amount, applicability or validity of which is currently being contested in good
faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case
may be, has established adequate reserves in accordance with GAAP. The Federal income tax
liabilities of the Company and its Subsidiaries have been determined by the Internal Revenue
Service and paid for all fiscal years up to and including the fiscal year ended December 31, 2004.

 

13

 

Section 4.10. Title to Property; Leases. The Company and its Subsidiaries have good and
sufficient title to their respective Material properties, including all such Material properties
reflected in the most recent audited balance sheet referred to in Section 4.5 or purported to have
been acquired by the Company or any Subsidiary after said date (except as sold or otherwise
disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by
this Agreement, except for those defects in title and Liens that, individually or in the aggregate,
would not have a Material Adverse Effect. All Material leases are valid and subsisting and are in
full force and effect in all material respects.

Section 4.11. Licenses, Permits, Etc. Except as disclosed in Schedule 4.11, the Company and
its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents,
copyrights, service marks, trademarks and trade names, or rights thereto (the “Intellectual
Property”), that individually or in the aggregate are Material, without known conflict with the
rights of others, except for those conflicts that, individually or in the aggregate, would not have
a Material Adverse Effect. To the knowledge of the Company, no claim has been asserted in writing
and is pending by any Person challenging or questioning the use of any such Intellectual Property
or the validity or effectiveness of any such Intellectual Property which could reasonably be
expected to have a Material Adverse Effect.

Section 4.12. Compliance with ERISA.

(a) The Company and each ERISA Affiliate have operated and administered each Plan in
compliance with all applicable laws except for such instances of noncompliance as have not
resulted in and could not reasonably be expected to result in a Material Adverse Effect.
Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I
or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has
occurred or exists that could reasonably be expected to result in the incurrence of any such
liability, penalty or excise tax by the Company or any ERISA Affiliate, or in the imposition
of any Lien on any of the rights, properties or assets of the Company or any ERISA
Affiliate, in either case pursuant to Title I or IV of ERISA such penalty or excise tax
provisions, section 412 or 436 of the Code or section 4068 of ERISA, other than such
liabilities, penalties or excise taxes or Liens as would not be individually or in the
aggregate Material.

(b) The expected postretirement benefit obligation (determined as of the last day of
the Company’s most recently ended fiscal year in accordance with Financial Accounting
Standards Board Statement No. 106, without regard to liabilities attributable to
continuation coverage mandated by section 4980B of the Code) of the Company and its
Subsidiaries is not Material.

Section 4.13. Use of Proceeds; Margin Regulations. Margin stock does not constitute more than
1% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does
not have any present intention that margin stock will constitute more than 1% of the value of such
assets. As used in this Section, the term “margin stock” shall have the meaning
assigned to it in Regulation U of the Board of Governors of the Federal Reserve System (12 CFR
221).

 

14

 

Section 4.14. Outstanding Debt. Upon the effectiveness of the Amendment, Restatement and
Combination Transactions, and of the Satisfaction Transactions, neither the Company nor any of its
Subsidiaries will have any Debt other than Capital Leases, Debt outstanding under the Financing
Documents and Debt under the New Loan Agreement Documents.

Section 4.15. Status under Certain Statutes.

(a) Neither the Company nor any Subsidiary is an “investment company” registered or
required to be registered under the Investment Company Act of 1940, the ICC Termination Act
of 1995, as amended, or the Federal Power Act, as amended.

(b) The Company is not subject to regulation under any federal or state statute or
regulation (other than Regulation X of the Board of Governors of the Federal Reserve System)
which limits its ability to incur Debt.

(c) Neither the Company nor any Subsidiary (i) is a Person described or designated in
the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets
Control or in Section 1 of the Anti-Terrorism Order or (ii) to the knowledge of the Company
engages in any dealings or transactions with any such Person. The Company and its
Subsidiaries are in compliance, in all material respects, with the USA Patriot Act.

Section 4.16. Environmental Matters. Other than exceptions to any of the following that could
not, individually or in any aggregation, reasonably be expected to give rise to a Material Adverse
Effect (a) the Company and its Restricted Subsidiaries comply and have complied with all applicable
Environmental Laws, and possess and comply with and have possessed and complied with all
Environmental Permits required under such laws, (b) there are no past, present or anticipated
future events, conditions, circumstances, practices, plans or legal requirements that, to its
knowledge, could prevent or materially increase the burden on the Company and its Restricted
Subsidiaries of compliance with applicable Environmental Laws or of obtaining, renewing or
complying with all Environmental Permits required under such laws, (c) the Company and its
Restricted Subsidiaries have received no notice of any violation of, or potential liability under,
any Environmental Law and (d) to the Company’s knowledge, there are and have been no Materials of
Environmental Concern released or disposed of at any property owned or operated, or otherwise used
for disposal by the Company or any of its Restricted Subsidiaries now or in the past that could
give rise to liability of the Company or any of its Restricted Subsidiaries under any Environmental
Law.

 

15

 

Section 4.17. Perfection and Priority of Liens. As of the Restructuring Effective Date, the
provisions of the Security Documents are effective to create in favor of the Collateral Trustee on
behalf of the Existing Creditors a legal, valid and enforceable first priority Lien (subject to
Liens permitted by Section 9.5) on all right, title and interest of the respective Obligors in the
Collateral (other than Excluded Perfection Assets) described therein except as such
enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law). Except for filings completed prior to the Restructuring Closing and as
contemplated hereby and by the Security Documents, no filing or other action will be necessary to
perfect or maintain the perfection and priority of such Liens in the Collateral (other than the
Excluded Perfection Assets).

Section 4.18. No Default. Immediately following the Restructuring Effective Date, the Company
will not, nor will any of its Restricted Subsidiaries, be in default under or with respect to any
of its Contractual Obligations in any respect which could reasonably be expected to have a Material
Adverse Effect.

Section 4.19. Payment to Existing Credit Agreement Administrative Agent; Fees. The amount of
consideration paid by the Company, its Subsidiaries and Gores to the Existing Credit Agreement
Administrative Agent on or before the Restructuring Effective Date, in connection with the
Transaction, will not exceed the amount specified in the Administrative Agent Letter. In addition,
other than the reimbursement of expenses pursuant to the Fee Letters or as disclosed in Schedule
4.19 or in a funds flow memorandum delivered to each New Noteholder prior to the consummation of
the Satisfaction Transactions, neither the Company, nor any Subsidiary, has paid (or promised to
pay) any fee or any other direct or indirect compensation to any Existing Creditor, any Pre-Closing
Existing Creditor, any financial or legal advisor to the Company or any Subsidiary, or Wells Fargo
Foothill, LLC (or any of their respective Affiliates) in connection with the Transaction other than
as contemplated by the Transaction Documents.

SECTION 5. REPRESENTATIONS OF THE EXISTING CREDITORS.

Each Existing Creditor represents that it is acquiring the Notes for its own account or for
one or more separate accounts maintained by it or for the account of one or more pension or trust
funds and not with a view to a distribution that would require registration of the Notes under the
Securities Act, provided that the disposition of such Existing Creditor’s or such pension or trust
fund’s property shall at all times be within such Existing Creditor’s or such pension or trust
fund’s control. Each Existing Creditor represents that it is (and each separate account for which
it may be acting is) an “accredited investor” described in Sections (1), (2), (3) or (7) of Rule
501(a) of Regulation D of the Securities Act and that it has the ability to evaluate the merits and
risks of the continuing investment in the Notes and the Amended and Restated Guarantee and the
ability to assume the economic risks involved in such an investment. Each Existing Creditor
understands that the Notes have not been registered under the Securities Act and may be resold only
if registered pursuant to the provisions of the Securities Act or if an exemption from registration
is available, except under circumstances where neither such registration nor such an exemption is
required by law, and that the Company is not required, and does not intend, to register the Notes.
Each Existing Creditor acknowledges that each Note will contain a legend to the foregoing effect
and agrees that it will only transfer such Notes in accordance with the transfer restrictions set
forth in such legend.

 

16

 

SECTION 6. INFORMATION AS TO COMPANY.

Section 6.1. Financial and Business Information. The Company shall deliver to each holder of
Notes that is an Institutional Investor:

(a) Monthly Reporting - within 30 days after the end of each fiscal month of the
Company, a copy of:

(i) an unaudited consolidated balance sheet of the Company and its Restricted
Subsidiaries as of the end of such month, and

(ii) the unaudited consolidated statements of income and cash flows of the
Company and its Restricted Subsidiaries for such fiscal month and for the elapsed
portion of the fiscal year ended with the last day of such fiscal month, setting
forth in each case in comparative form the figures for the corresponding fiscal
month in the previous fiscal year, all in reasonable detail.

(b) Quarterly Statements - within 50 days after the end of each quarterly fiscal period
in each fiscal year of the Company (other than the last quarterly fiscal period of each such
fiscal year), a copy of:

(i) an unaudited consolidated balance sheet of the Company and its Restricted
Subsidiaries as at the end of such quarter, and

(ii) the unaudited consolidated statements of income and cash flows of the
Company and its Restricted Subsidiaries for such quarter and (in the case of the
second and third quarters) for the portion of the fiscal year ending with such
quarter (including an explanation of any adjustments to such statements that will be
necessary in order to compute Consolidated Net Income in accordance with clause (b)
of the definition of such term),

setting forth in each case in comparative form the figures for the corresponding periods in
the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP
applicable to quarterly financial statements generally, and certified by a Senior Financial
Officer as fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows, subject to
changes resulting from year-end adjustments, provided that delivery within the time period
specified above of copies of the Company’s Quarterly Report on Form 10-Q prepared in
compliance with the requirements therefor and filed with the Securities and Exchange
Commission shall be deemed to satisfy the requirements of this Section 6.1(b);

(c) Annual Statements - within 90 days after the end of each fiscal year of the
Company, a copy of:

(i) a consolidated balance sheet of the Company and its Restricted
Subsidiaries, as at the end of such year, and

 

17

 

(ii) the consolidated statements of income, changes in shareholders’ equity and
cash flows of the Company and its Restricted Subsidiaries, for such year (including
an explanation of any adjustments to such statements that will be necessary in order
to compute Consolidated Net Income in accordance with clause (b) of the definition
of such term),

setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion
thereon of independent certified public accountants of recognized national standing, which
opinion shall state that such financial statements present fairly, in all material respects,
the financial position of the companies being reported upon and their results of operations
and cash flows and have been prepared in conformity with GAAP, and that the examination of
such accountants in connection with such financial statements has been made in accordance
with generally accepted auditing standards, and that such audit provides a reasonable basis
for such opinion in the circumstances, provided that the delivery within the time period
specified above of the Company’s Annual Report on Form 10-K for such fiscal year (together
with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3
under the Exchange Act) prepared in accordance with the requirements therefor and filed with
the Securities and Exchange Commission shall be deemed to satisfy the requirements of this
Section 6.1(c);

(d) promptly after their becoming available, one copy, by email or other electronic
transmission, of (i) each financial statement, report (other than those already delivered
pursuant to Section 6.1(a), (b) and (c)), notice or proxy statement sent by the Company or
any Subsidiary to public securities holders generally, and (ii) each regular or periodic
report (other than those already delivered pursuant to Section 6.1(a), (b) and (c)), each
registration statement that shall have become effective (without exhibits except as
expressly requested by such holder), and each final prospectus and all amendments thereto
filed by the Company or any Subsidiary with the Securities and Exchange Commission;

(e)
Notice of Default or Event of Default - promptly, and in any event within five days
after a Responsible Officer becoming aware of the existence of any Default or Event of
Default, a written notice specifying the nature and period of existence thereof and what
action the Company is taking or proposes to take with respect thereto;

(f)
ERISA Matters - promptly, and in any event within five days after a Responsible
Officer becoming aware of any of the following, a written notice setting forth the nature
thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with
respect thereto:

(i) with respect to any Plan, any reportable event, as defined in section
4043(b) of ERISA and the regulations thereunder, for which notice thereof has not
been waived pursuant to such regulations as in effect on the date hereof; or

 

18

 

(ii) the taking by the PBGC of steps to institute, or the threatening by the
PBGC of the institution of, proceedings under section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan
that such action has been taken by the PBGC with respect to such Multiemployer Plan;
or

(iii) any event, transaction or condition that could result in the incurrence
of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans, or in the imposition of any Lien on any of the rights, properties or
assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or
such penalty or excise tax provisions, if such liability or Lien, taken together
with any other such liabilities or Liens then existing, would reasonably be expected
to have a Material Adverse Effect;

(g) Requested Information - with reasonable promptness, such other data and information
relating to the business, operations, affairs, financial condition, assets or properties of
the Company or any of its Subsidiaries or relating to the ability of the Company to perform
its obligations under the Financing Documents as from time to time may be reasonably
requested by any such holder of Notes;

(h) Documents Delivered Under New Loan Agreement - simultaneously with the delivery
thereof to the administrative agent under the New Loan Agreement, a copy of each report,
notice or similar document delivered under the New Loan Agreement (excluding (i) monthly,
quarterly and annual financial statements and other documents that are required by the terms
of this Section 6.1 to be delivered to such holder and (ii) information relating to pricing
and borrowing availability under the New Loan Agreement);

(i) [RESERVED]

(j) Operating and Cash Flow Budgets - on or before February 15th of each
year, commencing on February 15, 2010, (i) the annual budget of the Company and its
Restricted Subsidiaries, as approved by its board of directors, for the Company’s fiscal
year beginning on the preceding January 1st and (ii) a forecast of the projected
consolidated cash flows of the Company and its Restricted Subsidiaries for such fiscal year,
broken down by calendar month, with a month by month comparison to the previous fiscal year
of the Company, such budget and forecast to be in reasonable detail; and

(k) Interest Payment Information - on each Interest Payment Date, a statement as to the
aggregate amount of the Capitalized Interest Amounts that have been added to the principal
amount of such Note immediately after giving effect to the Capitalized Interest Amount to be
added to such principal amount on such date.

 

19

 

Section 6.2. Officer’s Certificate. Each set of financial statements delivered to a holder of
Notes pursuant to Section 6.1(a), Section 6.1(b) or Section 6.1(c) hereof shall be accompanied by a
certificate of a Senior Financial Officer setting forth:

(a) Covenant Compliance - in the case of the financial statements delivered pursuant to
Section 6.1(b) or 6.1(c), the information (including detailed calculations) required in
order to establish whether the Company was in compliance with the requirements of Section
9.3 through Section 9.7 and Section 9.10 on the date of the balance sheet included in the
statements then being furnished (including with respect to such Section, where applicable,
the calculations of the maximum ratio permissible under the terms of such Section, and the
calculation of the ratio then in existence); and

(b)
Event of Default - a statement that such officer has reviewed the relevant terms
hereof and has made, or caused to be made, under his or her supervision, a review of the
transactions and conditions of the Company and its Subsidiaries from the beginning of the
monthly, quarterly or annual period covered by the statements then being furnished to the
date of the certificate and that such review shall not have disclosed the existence during
such period of any condition or event that constitutes a Default or an Event of Default or,
if any such condition or event existed or exists (including, without limitation, any such
event or condition resulting from the failure of the Company or any Subsidiary to comply
with any Environmental Law), specifying the nature and period of existence thereof and what
action the Company shall have taken or proposes to take with respect thereto.

Section 6.3. Inspection. The Company shall permit the representatives of each holder of Notes
that is an Institutional Investor:

(a)
No Default - if no Default or Event of Default then exists, at the expense of such
holder and upon reasonable prior notice to the Company, to visit the principal executive
office of the Company, to discuss the affairs, finances and accounts of the Company and its
Subsidiaries with the Company’s officers, and, with the consent of the Company (which
consent will not be unreasonably withheld) to visit the other offices and properties of the
Company and each Subsidiary, all at such reasonable times and as often as may be reasonably
requested in writing; and

(b) Default - if a Default or Event of Default then exists, at the expense of the
Company, to visit and inspect any of the offices or properties of the Company or any
Subsidiary, to examine all their respective books of account, records, reports and other
papers, to make copies and extracts therefrom, and to discuss their respective affairs,
finances and accounts with their respective officers and independent public accountants (and
by this provision the Company authorizes said accountants to discuss the affairs, finances
and accounts of the Company and its Subsidiaries), all at such times and as often as may be
requested.

 

20

 

Section 6.4. Monthly Teleconference. On the fifth Business Day of each month (the “Reporting
Month”) (or at such other date and time as shall be mutually agreed between the
Required Holders and the Company), the Company will, at its expense, host a telephone
conference during normal business hours in which all of the New Noteholders may participate. The
Company will distribute appropriate dial-in information, by email or other electronic transmission,
to all New Noteholders at least three Business Days in advance of such telephone conference.
During such telephone conference, the Company will give a presentation, in reasonable detail,
regarding the Company’s important operational and financial developments during the second to last
month immediately preceding the Reporting Month (including any material developments with respect
to agreements with radio station affiliates of, or providers of programming to, the Company and its
Subsidiaries and any significant deviations from the budget referred to in Section 6.1(j)) and its
projected performance during the 12 month period following such month, and will respond to
questions from the New Noteholders.

SECTION 7. INTEREST; PREPAYMENT OF THE NOTES.

Section 7.1. Interest.

(a) Interest Rate and Payments. Subject to Section 7.1(c), interest payable on the
Notes shall be computed on the basis of a 360-day year of twelve 30-day months on the unpaid
principal balance thereof from the date of each such Note at the rate of 15% per annum and
shall be payable, in arrears, quarterly on the last day of each March, June, September and
December and on the maturity date of the Notes (each an “Interest Payment Date”) in each
year, commencing on June 30, 2009, until the principal amount thereof has been paid.
Notwithstanding the foregoing, interest on the Notes issued to the Pre-Closing Existing
Noteholders on the Restructuring Effective Date will accrue interest from April 1, 2009.

(b) Capitalized Interest Amount. On each Interest Payment Date (other than the
scheduled maturity date of the Notes or the date on which all the Notes become due and
payable), in lieu of making the entire interest payment due on a Note in cash, the Company
shall:

(i) pay in cash on such Interest Payment Date that portion of the interest
accrued on the outstanding principal amount of such Note which would have accrued if
the rate of interest on the Notes were ten percent (10%) per annum (or, in the event
that interest shall at such time be accruing at a higher rate by operation of
Section 7.1(c) or Section 7.1(d), such higher rate minus five (5) percentage
points); and

(ii) add to the outstanding principal amount of such Note on such Interest
Payment Date the portion of accrued interest which is not paid in cash pursuant to
the immediately preceding clause (i) (each such addition with respect to any Note, a
“Capitalized Interest Amount”).

The Company shall deliver the statement referred to in Section 6.1(k) on each Interest
Payment Date. Once added to the principal amount of a Note, a Capitalized Interest
Amount shall be considered principal for all purposes, and shall bear interest and be
payable in accordance with this Section 7.

 

21

 

(c) Increase in Interest Rate; Event of Default. Upon the occurrence of an Event of
Default, the outstanding principal amount of the Notes shall thereafter bear interest to,
but excluding, the date when no Event of Default shall be continuing, at a rate per annum
equal to the lesser of:

(i) the Maximum Legal Rate of Interest; and

(ii) seventeen percent (17%).

(d) Interest and Other Amounts. Any overdue payment of interest on the outstanding
principal amount of any Notes, and any other overdue amount payable in accordance with the
terms of the Financing Documents (regardless of whether the failure to make such payment
constitutes an Event of Default), shall bear interest, payable on demand, for each day from
and including the date payment thereof was due to the date of actual payment, at a rate per
annum equal to the lesser of

(i) the Maximum Legal Rate of Interest, and

(ii) seventeen percent (17%).

This Section 7.1(d) shall not apply at any time when Section 7.1(c) shall be applicable.

Section 7.2. Payment at Maturity. As provided therein, the entire unpaid principal amount of
the Notes shall be due and payable on the stated maturity date thereof.

Section 7.3. Optional Prepayments. The Company may, at its option, upon notice as provided
below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less
than 5% of the aggregate principal amount of the Notes then outstanding in the case of a partial
prepayment (except any partial prepayment arising from a sale or disposition pursuant to Section
9.9(a) or Section 9.9(e) as to which such minimum amount limitation shall not apply), at 100% of
the principal amount so prepaid, together with interest accrued thereon to, but excluding, the date
of such prepayment, but without any penalty or premium. The Company will give each holder of Notes
written notice of each optional prepayment under this Section 7.3 not less than 5 days and not more
than 30 days prior to the date fixed for such prepayment. Each such notice shall specify such date
(which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such
date, the principal amount of each Note held by such holder to be prepaid (determined in accordance
with Section 7.6), and the interest to be paid on the prepayment date with respect to such
principal amount being prepaid.

 

22

 

Section 7.4. Prepayment of Notes Upon a Change of Control.

(a) Required Prepayment of Notes. In the event of a Change of Control (or a “Change of
Control”, as such term is defined in the New Loan Agreement) the Company shall prepay, in
accordance with and subject to this Section 7.4, all, but not less than all,
of the Notes held by each holder on the earlier of the second Business Day after the
Change in Control or the date of repayment or prepayment of any other Debt of the Company
and its Subsidiaries required to be prepaid or repaid in connection with such Change of
Control (the “Change of Control Prepayment Date”).

(b) Terms of Prepayment. Prepayment of the Notes pursuant to this Section 7.4 shall be
at 100% of the principal amount of the Notes, together with accrued and unpaid interest
thereon to, but excluding, the Change of Control Prepayment Date. The prepayment shall be
made on the Change of Control Prepayment Date.

Section 7.5. Prepayment Under Amended and Restated Intercreditor and Collateral Trust
Agreement. The Notes shall be subject to prepayment as provided in Section 4.1 of the Amended and
Restated Intercreditor and Collateral Trust Agreement.

Section 7.6. Allocation of Partial Prepayments. In the case of each partial prepayment of the
Notes, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at
the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal
amounts thereof.

Section 7.7. Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to
this Section 7, the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment, together with interest on such principal amount
accrued to, but excluding, such date, but without payment of any penalty or premium. From and
after such date, unless the Company shall fail to pay such principal amount when so due and
payable, together with the interest, as aforesaid, interest on such principal amount shall cease to
accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and
shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any
Note.

Section 7.8. Purchase of Notes. The Company will not and will not permit any Affiliate (other
than Gores) to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the
outstanding Notes except upon the payment or prepayment of the Notes in accordance with the terms
of this Agreement and the Notes. The Company will promptly cancel all Notes acquired by it or any
Affiliate (other than Gores) pursuant to any payment or prepayment of Notes pursuant to any
provision of this Agreement and no Notes may be issued in substitution or exchange for any such
Notes.

SECTION 8. AFFIRMATIVE COVENANTS.

The Company covenants that so long as any of the Notes are outstanding:

Section 8.1. Compliance with Law. The Company will, and will cause each of its Restricted
Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which
each of them is subject, including, without limitation, Environmental Laws, and will obtain and
maintain in effect all licenses, certificates, permits, franchises and other governmental
authorizations necessary to the ownership of their respective properties or to the conduct of their
respective businesses, in each case to the extent necessary to ensure that non-compliance with
such laws, ordinances or governmental rules or regulations or failures to obtain or maintain
in effect such licenses, certificates, permits, franchises and other governmental authorizations
would not reasonably be expected, individually or in the aggregate, to have a materially adverse
effect on the business, operations, affairs, financial condition, properties or assets of the
Company and its Restricted Subsidiaries taken as a whole.

 

23

 

Section 8.2. Insurance. The Company will, and will cause each of its Restricted Subsidiaries
to, maintain, with financially sound and reputable insurers, insurance with respect to their
respective properties and businesses against such casualties and contingencies, of such types, on
such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate
reserves are maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly situated.

Section 8.3. Maintenance of Properties. The Company will, and will cause each of its
Restricted Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective
properties in good repair, working order and condition (other than ordinary wear and tear), so that
the business carried on in connection therewith may be properly conducted at all times, provided
that this Section shall not prevent the Company or any Restricted Subsidiary from discontinuing the
operation and the maintenance of any of its properties if such discontinuance is desirable in the
conduct of its business and the Company has concluded that such discontinuance would not,
individually or in the aggregate, have a materially adverse effect on the business, operations,
affairs, financial condition, properties or assets of the Company and its Restricted Subsidiaries
taken as a whole.

Section 8.4. Payment of Taxes. The Company will, and will cause each of its Restricted
Subsidiaries to, file all income tax or similar tax returns required to be filed in any
jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all
other taxes, assessments, governmental charges, or levies payable by any of them, to the extent
such taxes and assessments have become due and payable and before they have become delinquent,
provided that neither the Company nor any Restricted Subsidiary need pay any such tax or assessment
if (i) the amount, applicability or validity thereof is contested by the Company or such Restricted
Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a
Restricted Subsidiary has established adequate reserves therefor in accordance with GAAP on the
books of the Company or such Restricted Subsidiary or (ii) the nonpayment of all such taxes and
assessments individually, or in the aggregate, would not reasonably be expected to have a Material
Adverse Effect.

Section 8.5. Corporate Existence, Etc. Except as permitted by Section 9.2, the Company will
at all times preserve and keep in full force and effect its corporate existence and the Company
will at all times preserve and keep in full force and effect the corporate existence of each of its
Restricted Subsidiaries and all rights and franchises of the Company and its Restricted
Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to
preserve and keep in full force and effect such corporate existence, right or franchise would not,
individually or in the aggregate, have a materially adverse effect on the business,
operations, affairs, financial condition, properties or assets of the Company and its
Restricted Subsidiaries taken as a whole.

 

24

 

Section 8.6. Additional Guarantors. With respect to any Person that, subsequent to the date
of the Restructuring Closing, becomes a Restricted Subsidiary, the Company shall cause such new
Restricted Subsidiary to become a party to the Amended and Restated Guarantee, within 10 Business
Days after so becoming a Restricted Subsidiary, pursuant to a joinder agreement which is in the
form of Annex I to the Amended and Restated Guarantee and will provide notice to each holder of
Notes within five (5) Business Days of such Subsidiary entering into a joinder agreement that such
joinder agreement is being delivered and will also refer to this Section 8.6 and the rights of the
holders to receive an opinion with respect to such joinder agreement and will give the holders 10
Business Days to request such opinion; and, if requested by the Required Holders, deliver to the
holders of the Notes legal opinions relating to such documentation, which opinions shall be in form
and substance, and from counsel, reasonably satisfactory to the Required Holders. In addition,
such Person will grant a security interest in its assets to the same extent as the other Subsidiary
Guarantors and, in furtherance thereof, will execute each applicable Security Document to which the
other Subsidiary Guarantors are parties (or a joinder thereto).

Section 8.7. Sale of Culver City. The Company will use reasonable efforts to consummate a
Sale-Leaseback Transaction, on terms reasonably acceptable to the Required Holders (it being
understood that the Required Holders hereby consent to terms of the Sale-Leaseback Transaction so
long as such terms are not materially less favorable to the Company than the terms set forth on
Schedule 8.7), with respect to Culver City as promptly as practicable after the Restructuring
Closing.

Section 8.8. Further Assurances.

(a) The Company will, and will cause each of its Subsidiary Guarantors to, maintain
with respect to the Collateral owned or held by it the security interests created by the
Security Documents as perfected security interests having at least the priorities described
therein and in this Agreement and defend such security interests against the claims and
demands of all Persons whomsoever. Without limiting the generality of the foregoing, except
as otherwise permitted under the Security Documents or under this Agreement, the Company
will not, and will not permit any Subsidiary Guarantor to, (i) file or authorize to be
filed, in any jurisdiction, any financing statement or like instrument with respect to any
of the Collateral in which the Collateral Trustee is not named as the sole secured party for
the benefit of the Secured Parties, or (ii) cause or permit any Person other than the
Collateral Trustee to have “control” (within the meaning of Sections 9-104, 9-105, 9-106 or
9-107 of the New York Uniform Commercial Code) over any part of the Collateral.

(b) The Company will, and will cause each of its Subsidiary Guarantors to, furnish to
the holders of the Notes and the Collateral Trustee from time to time statements and
schedules identifying and describing its property and such other reports in connection with
the Collateral as the Required Holders or the Collateral Trustee may
reasonably request, all in reasonable detail; provided that, so long as no Event of
Default shall have occurred and be continuing, only two such requests shall be permitted in
any calendar year.

 

25

 

(c) The Company will, and will cause each of its Subsidiary Guarantors to, at any time
and from time to time, and at its sole expense, promptly and duly execute and deliver, and
have recorded, such instruments and documents and take such further actions as shall be
necessary or as shall be reasonably requested by the Required Holders or the Collateral
Trustee to obtain or preserve the full benefits of the Security Documents and the rights and
powers therein granted, including the filing of any financing or continuation statements
under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with
respect to the security interests created under the Security Documents with respect to the
Collateral owned or held by any of them.

(d) Upon consummation of the Sale-Leaseback Transaction with respect to Culver City
referred to in Section 8.7, or if it shall acquire any real property interest, including
improvements, having a fair market value (as reasonably determined by the Company in good
faith) of $1,000,000 or more (or shall make improvements upon any existing real property
interest resulting in the fair market value (as reasonably determined by the Company in good
faith) of such interest together with such improvements being equal to $1,000,000 or more),
then (subject, in the case of any such interest that is a leasehold interest, to the
delivery by the relevant landlord(s) of any required landlord consent) the Company or any of
its Subsidiary Guarantors, as the case may be, will execute and deliver in favor of the
Collateral Trustee a mortgage, deed of trust or deed to secure debt (as appropriate for the
jurisdiction in which such respective real property is situated) pursuant to which it will
create a Lien upon the Company’s leasehold interest in Culver City or such other real
property interests (and improvements), as the case may be, in favor of the Collateral
Trustee for the benefit of the Secured Parties as collateral security for the “Secured
Obligations” (as defined in the Amended and Restated Intercreditor and Collateral Trust
Agreement), and will deliver (or, or in case of landlords’ consents, will use its
commercially reasonable efforts to cause the relevant landlord(s) to deliver) such opinions
of counsel, landlords’ consents, surveys and title insurance policies as the Required
Holders or the Collateral Trustee shall reasonably request in connection therewith.

SECTION 9. NEGATIVE COVENANTS.

The Company covenants that so long as any of the Notes are outstanding:

Section 9.1. Transactions with Affiliates. The Company will not and will not permit any
Restricted Subsidiary to enter into directly or indirectly any Material transaction (including
without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering
of any service) with any Affiliate (other than the Company or any Restricted Subsidiary), except
(i) payment of the Permitted Glendon/Affiliate Payments, (ii) payments made to Gores in respect of
the Notes held by Gores, (iii) Guaranties by Gores or other contingent obligations of Gores in
respect of obligations of the Company or any

 

26

 

Subsidiary,
(iv) payments made to Gores in respect of Debt, if any, held by Gores under the New Loan Agreement or other obligations owing to
Gores in respect of the New Loan Agreement (subject, for the avoidance of doubt, to the Gores
Subordination Agreement), (v) payments made to Gores arising out of a Sale-Leaseback Transaction
with respect to Culver City, but only if Gores is the purchaser of Culver City and such
Sale-Leaseback Transaction complies with the terms set forth in Schedule 8.7 or in clause (vi) of
this Section 9.1 and (vi) pursuant to the reasonable requirements of the Company’s or such
Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such
Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an
Affiliate.

Section 9.2. Merger, Consolidation, Etc. Except to the extent permitted by Section 9.6, the
Company shall not, nor shall it permit any Restricted Subsidiary to, consolidate with or merge with
any other corporation or convey, transfer or lease substantially all of its assets in a single
transaction or series of transactions to any Person (provided that a Subsidiary may merge into the
Company or a Subsidiary Guarantor). Without limiting the generality of the foregoing, the Company
shall not, nor shall it permit any Restricted Subsidiary to, consolidate, merge, transfer or lease
the Metro Division or the Network Division into or to any Person (other than the Company or another
Restricted Subsidiary that is a wholly-owned Domestic Subsidiary).

Section 9.3. Maintenance of Senior Debt Leverage Ratio. The Company will not permit the
Senior Debt Leverage Ratio as of any date specified below to be greater than the ratio set forth
opposite such date:

	 	 	 
	Date	 	Ratio
	December 31, 2009
	 	6.25 to 1.0
	March 31, 2010
	 	6.00 to 1.0
	June 30, 2010
	 	5.50 to 1.0
	September 30, 2010
	 	5.00 to 1.0
	December 31, 2010
	 	4.50 to 1.0
	March 31, 2011
	 	4.25 to 1.0
	June 30, 2011
	 	4.00 to 1.0
	September 30, 2011
	 	3.75 to 1.0
	December 31, 2011
	 	3.50 to 1.0
	March 31, 2012
	 	3.50 to 1.0
	June 30, 2012
	 	3.50 to 1.0

 

27

 

Section 9.4. Limitation on Debt. The Company will not, nor will it permit any Restricted
Subsidiary to, create, incur, assume, guarantee or be or remain liable, contingently or otherwise,
with respect to any Debt other than:

(a) Debt under the Financing Documents;

(b) Debt in respect of Capital Leases and purchase money obligations listed in Schedule
9.4, a Capital Lease, if any, arising out of the Sale-Leaseback Transaction with respect to
Culver City referred to in Section 8.7, and additional Capital Leases and purchase money
obligations in an aggregate amount not to exceed $1,000,000 at any time, and any
refinancings, renewals, refundings or extensions thereof (provided (i) that the principal
amount of such Debt shall not be increased except in each case by an amount equal to the
fees and expenses incurred in connection therewith and (ii) the terms of such Debt are no
less favorable (other than terms relating to interest, prepayment premiums, fees, the
amount, timing or computation of payments and other similar economic terms), taken as a
whole, than those of the Debt being refinanced, renewed, refunded or extended);

(c) Debt evidenced by the New Loan Agreement Documents (but only if (i) it is not
secured by any property of the Company or any Restricted Subsidiary (except to the extent
provided in Section 9.5(j)) and (ii) the aggregate amount of such Debt does not exceed the
Permitted Amounts), and any refinancings, refundings, renewals or extensions thereof;
provided that any such refinancing, refunding, renewal or extension shall be effected in
compliance with the terms of the New Term Loan Subordination Agreement and the Gores
Subordination Agreement and the aggregate amount of such Debt so refinanced, renewed or
extended does not exceed the Permitted Amounts;

(d) other unsecured Debt of the Company and the Restricted Subsidiaries in an aggregate
principal amount not exceeding $1,000,000 at any time outstanding;

(e) Debt of the Company to any Subsidiary Guarantor and of any Subsidiary Guarantor to
the Company or any other Subsidiary Guarantor; and

(f) Debt in respect of the Sale-Leaseback Transaction described in Section 8.7.

Section 9.5. Limitation on Liens. The Company will not, nor will it permit any Restricted
Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of its property, assets
or revenues, whether now owned or hereafter acquired, except for:

(a) Liens for taxes not yet subject to penalties for non-payment or which are being
contested in good faith by appropriate proceedings, provided that, if contested, adequate
reserves with respect thereto are maintained on the books of the Company or its Restricted
Subsidiaries, as the case may be, in conformity with GAAP;

(b) Liens imposed by law, such as landlords’, carriers’, warehousemen’s, materialmen’s
and mechanics’ liens, or Liens arising out of judgments or awards against the Company or any
of its Restricted Subsidiaries with respect to which the Company or such Restricted
Subsidiary at the time shall currently be prosecuting an appeal or proceedings for review in
good faith and by proper proceedings;

 

28

 

(c) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation and deposits securing liability to insurance
carriers under insurance or self-insurance arrangements;

(d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds (or letters of credit to secure any
of the foregoing but, for the avoidance of doubt and subject to Section 9.5(j), excluding
deposits or other Liens to secure any reimbursement obligations under such letters of
credit) and other obligations of a like nature, in each case incurred in the ordinary course
of business and not securing debt for money borrowed;

(e) easements, rights-of-way, restrictions and other similar encumbrances incurred in
the ordinary course of business which, in the aggregate, are not substantial in amount and
which do not in any case materially detract from the value of the property subject thereto
or materially interfere with the ordinary conduct of the business taken as a whole of the
Company or such Restricted Subsidiary;

(f) Liens created pursuant to the Security Documents;

(g) Liens in existence on the date hereof listed on Schedule 9.5 and Liens securing any
refinancings, refundings, renewals or extensions of Debt secured by such Liens outstanding
on the date hereof, provided that no such Lien is spread to cover any additional property
after the date of Closing and that the amount of Debt secured by any such Lien is not
increased (by an amount greater than costs associated with any such refinancing, refunding,
renewals or extensions);

(h) bankers’ Liens, rights of setoff and other similar Liens existing solely with
respect to cash and Cash Equivalents on deposit in one or more accounts maintained by the
Company or any Restricted Subsidiary, in each case granted in the ordinary course of
business in favor of the bank or banks with which such accounts are maintained, securing
only amounts owing to such bank with respect to cash management and operating account
arrangements, including, without limitation, those involving pooled accounts and netting
arrangements (but in no event securing Debt);

(i) Liens in respect of Debt not in existence on the date hereof permitted by Section
9.4(b) so long as (i) the aggregate amount of such Debt does not exceed $1,000,000 at any
time (subject to increase in accordance with clause (i) of the proviso to Section 9.4(b)),
(ii) any such Lien attaches only to the property that is purchased or acquired and the
proceeds thereof, and (iii) such Lien only secures the Debt incurred to purchase or acquire
such asset and refinancings or replacements thereof not in excess of the amount outstanding
at the time of such refinancing or replacement (subject to increase in accordance with
clause (i) of the proviso of Section 9.4(b));

 

29

 

(j) Liens on cash securing reimbursement obligations in respect of letters of credit
issued under the New Loan Agreement so long as all such cash has been provided by Gores by
means of a capital contribution to, or purchase of Equity Interests in, the
Company, or by means of Letter of Credit Collateralization (as defined in the Gores
Subordination Agreement), the claims or subrogation claims in respect of which are
subordinated to all Senior Debt (as defined in the Gores Subordination Agreement) to the
same extent as all other Subordinated Debt (as defined in the Gores Subordination Agreement)
is subordinated to such Senior Debt (except that any such cash not required to secure such
reimbursement obligations may be repaid to Gores at any time as contemplated by the Gores
Subordination Agreement), in each case made at or about the same time as such Liens are
created; and

(k) other Liens not otherwise permitted by clauses (a) through (j) of this Section 9.5,
provided that (i) in the case of Liens securing Debt, the aggregate principal or face amount
secured thereby, and (ii) in the case of Liens securing obligations (other than Debt), the
aggregate amount secured thereby, does not, in the case of clause (i) and clause (ii),
exceed $500,000 in the aggregate at any time.

Section 9.6. Limitation on Investments. The Company will not, nor will it permit any
Restricted Subsidiary to, make or hold any Investments, except;

(a) Investments held by the Company and its Restricted Subsidiaries in the form of cash
and Cash Equivalents;

(b) (i) Investments by the Company and its Restricted Subsidiaries in their respective
Restricted Subsidiaries outstanding on the date hereof and (ii) additional Investments by
the Company and its Restricted Subsidiaries in any Restricted Subsidiary;

(c) Investments consisting of extensions of credit in the nature of accounts receivable
or notes receivable arising from the grant of trade credit in the ordinary course of
business, and Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in order to prevent
or limit loss;

(d) Investments in existence as of the Restructuring Effective Date and set forth on
Schedule 9.6(d);

(e) Investments set forth on Schedule 9.6(e), plus, for the avoidance of doubt, any
amount applicable to acquisition costs of such Investment in accordance with Section 9.6(f);
and

(f) Investments to acquire a majority of the Equity Interests in any Person, or an
Investment of the type described in clause (c) of the definition of such term, not to exceed
$5,000,000 in any calendar year so long as the aggregate amount of such Investments made
pursuant to this clause (f) and the aggregate amount of Capital Expenditures made in
accordance with Section 9.10 do not exceed $15,000,000 in such year.

 

30

 

Section 9.7. Restricted Payments. The Company shall not, nor shall it permit any Restricted
Subsidiary to, declare or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except for:

(a) any such Restricted Payment paid solely to the Company or a wholly-owned Restricted
Subsidiary; and

(b) so long as no Event of Default or Default shall have occurred and be continuing or
would result therefrom, the Company may repurchase its Equity Interests owned by employees
of the Company or its Subsidiaries or make payments to employees of the Company or its
Subsidiaries upon termination of employment in connection with the exercise of stock
options, stock appreciation rights or similar equity incentives or equity based incentives
pursuant to management incentive plans or in connection with the death or disability of such
employees in an aggregate amount not to exceed $250,000 in any fiscal year.

Section 9.8. Line of Business. The Company will not and will not permit any Restricted
Subsidiary to engage in any business if, as a result, the general nature of the business in which
the Company and its Restricted Subsidiaries, taken as a whole, would then be engaged would be
substantially changed from the general nature of the business in which the Company and its
Restricted Subsidiaries, taken as a whole, are engaged on the Restructuring Effective Date.

Section 9.9. Limitation on Sale of Assets. The Company will not, and will not permit any
Restricted Subsidiary to, convey, sell, lease, assign, transfer or otherwise dispose of any of its
property, business or assets (including, without limitation, notes receivables, account receivables
and leasehold interests), whether now owned or hereafter acquired, or, in the case of any
Restricted Subsidiary, issue or sell any of such Restricted Subsidiary’s Equity Interests to any
Person other than the Company or any wholly owned Restricted Subsidiary, except:

(a) (i) the sale or other disposition of inventory (and other similar property) in the
ordinary course of business and (ii) sales or other dispositions of obsolete and worn out
property, and property not used or useful in the business of the Company or any Restricted
Subsidiary, provided that to the extent that the net cash proceeds of such sale or
disposition of obsolete and worn out property, and property not used or useful in the
Company’s business, exceeds $100,000 in any calendar year, the Company shall apply such
excess to prepayment of the Notes pursuant to Section 7.3 hereof and Section 4.1 of the
Amended and Restated Intercreditor and Collateral Trust Agreement (it being understood that
sales of subsidiaries and/or material lines of business shall not be permitted under this
clause (a));

(b) the sale of Culver City in accordance with Section 8.7 (it being understood, for
the avoidance of doubt and notwithstanding any provision of any Transaction Document to the
contrary, that the proceeds of such sale may be re-invested by the Company in its business
and need not be applied to repay the Notes);

 

31

 

(c) the sale or other disposition of cash or Cash Equivalents;

(d) Permitted Library Assets Transactions; and

(e) sale of assets set forth on Schedule 9.9(e), provided that, promptly upon receipt
thereof, the Company shall apply 50% of the net cash proceeds of any such asset sale to
prepay the Notes pursuant to Section 7.3 hereof.

Notwithstanding anything to the contrary contained herein or in any other Financing Document,
each New Noteholder hereby authorizes and directs the Collateral Trustee to release its Lien
created under the Security Document on any assets sold in a transaction permitted under this
Agreement provided that any such release in respect of Permitted Library Assets Transactions shall
be limited to interests of third parties in revenue and/or profit sharing arrangements (and other
similar arrangements) with respect to revenue and/or profits generated by Library Assets.

Section 9.10. Capital Expenditures; Acquisitions. The Company will not, and will not permit
any Restricted Subsidiary to, make any Capital Expenditures, except that during any calendar year,
the Company and its Restricted Subsidiaries may make Capital Expenditures so long as the aggregate
amount of all such Capital Expenditures together with the aggregate amount of any Investments made
pursuant to Section 9.6(f) does not exceed $15,000,000 in any calendar year.

Section 9.11. Limitation on Amendments to New Loan Agreement Documents. The Company will not
amend, modify or change, or consent or agree to any amendment, modification or change to, any of
the terms of the New Loan Agreement Documents, or enter into any documents in connection with any
refinancing, refunding, renewal or extension thereof (or successive refinancings, refundings,
renewals, or extensions thereof) in violation of the terms of the New Term Loan Subordination
Agreement or the Gores Subordination Agreement.

Section 9.12. No Unrestricted Subsidiaries. Notwithstanding any other provision hereof, all
Subsidiaries of the Company shall be Restricted Subsidiaries that are Domestic Subsidiaries.

Section 9.13. Restrictive Agreements. The Company will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement (other than the Transaction Documents and the New Loan Agreement
Documents) that prohibits, restricts or imposes any condition upon the ability of any Restricted
Subsidiary to pay dividends or other distributions with respect to its Equity Interests or to make
or repay loans or advances to the Company or any Restricted Subsidiary or to guarantee Debt of the
Company or any Restricted Subsidiary except for such encumbrances or restrictions existing under or
by reason of (i) applicable law, (ii) customary provisions restricting subletting or assignment of
any lease governing a leasehold interest; (iii) customary provisions restricting assignment of any
agreement entered into in the ordinary course of business; (iv) any holder of a Lien permitted by
Section 9.5 restricting the transfer of the property subject 

 

32

 

thereto; (v) customary restrictions
and conditions contained in any agreement relating to the sale of any
 property permitted hereunder pending the consummation of such sale; (vi) any agreement
(including, without limitation, with respect to Debt or a Lien permitted to be incurred hereunder)
in effect at the time a Subsidiary becomes a Subsidiary Guarantor, so long as such agreement was
not entered into in connection with or in contemplation of such person becoming a Subsidiary
Guarantor; (vii) customary provisions in partnership agreements, limited liability company
organizational governance documents, asset sale and stock sale agreements and other similar
agreements, as in effect on the Restructuring Effective Date, that restrict the transfer of
ownership interests in such partnership, limited liability company or similar Person; or (viii) any
encumbrances or restrictions imposed by any amendments or refinancings that are otherwise permitted
by the Transaction Documents or the New Loan Agreement Documents; provided that such amendments or
refinancings are not materially more restrictive with respect to such encumbrances and restrictions
than those prior to such amendment or refinancing.

SECTION 10. EVENTS OF DEFAULT.

An “Event of Default” shall exist if any of the following conditions or events shall occur and be
continuing:

(a) the Company defaults in the payment of any principal of any Note when the same
becomes due and payable, whether at maturity or at a date fixed for prepayment or by
declaration or otherwise; or

(b) the Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or

(c) the Company defaults in the performance of or compliance with any term contained in
Sections 8.6, 8.8 or 9; or

(d) the Company defaults in the performance of or compliance with any term contained
herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 10) or
any other Financing Document and such default is not remedied within 30 days after the
earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the
Company receiving written notice of such default from any holder of a Note (any such written
notice to be identified as a “notice of default” and to refer specifically to this paragraph
(d) of Section 10); or

(e) a default shall occur in the observance or performance of any covenant or agreement
contained in the Amended and Restated Guarantee by a Subsidiary Guarantor or any other
Financing Document to which such Subsidiary Guarantor is a party and such default shall
continue beyond the period of grace, if any, allowed with respect thereto or the Amended and
Restated Guarantee or any other Financing Document to which such Subsidiary Guarantor is a
party shall cease to be in full force and effect for any reason whatsoever (other than
termination in accordance with its terms), including, without limitation, a determination by
any governmental body or court that such agreement is invalid, void or unenforceable against
a Subsidiary Guarantor, or such Subsidiary Guarantor shall contest or deny in writing the
validity or enforceability of any of its obligations under the Amended and Restated Guarantee or any other Financing Document to
which it is a party; or

 

33

 

(f) any representation or warranty made in writing by or on behalf of the Company or
any Subsidiary Guarantor or by any officer of the Company or any Subsidiary Guarantor in
this Agreement, in the Amended and Restated Guarantee or in any other Financing Document, or
in any certificate or other document furnished in connection with satisfying the conditions
to effectiveness of the Amendment, Restatement and Combination Transactions or the
Satisfaction Transactions or in connection with any amendment, waiver, consent or similar
action in respect of any Transaction Document, proves to have been false or incorrect in any
material respect on the date as of which made; or

(g) (i) the Company or any Significant Subsidiary is in default (as principal or as
guarantor or other surety) in the payment of any principal of or premium or interest on any
Debt outstanding under the New Loan Agreement, or any Debt that is outstanding in an
aggregate principal amount of at least $1,000,000, beyond any period of grace provided with
respect thereto, (ii) the Company or any Significant Subsidiary is in default in the
performance of or compliance with any term of the New Loan Agreement or of any evidence of
Debt in an aggregate outstanding principal amount of at least $1,000,000 or of any mortgage,
indenture or other agreement relating thereto or any other condition exists, and as a
consequence of such default or condition the Debt outstanding under the New Loan Agreement
or such other Debt has become, or has been declared (or one or more Persons are entitled to
declare such Debt to be), due and payable before its stated maturity or before its regularly
scheduled dates of payment or (iii) as a consequence of the occurrence or continuation of
any event or condition (other than (A) the passage of time, (B) the right of the holder of
Debt to convert such Debt into equity interests or (C) any casualty or condemnation event),
(x) the Company or any Significant Subsidiary has become obligated to purchase or repay the
Debt outstanding under the New Loan Agreement, or other Debt in an aggregate outstanding
principal amount of at least $1,000,000, before its regular maturity or before its regularly
scheduled dates of payment, or (y) one or more Persons have the right to require the Company
or any Significant Subsidiary so to purchase or repay such Debt (it being understood that
this clause (iii) shall not apply to any such purchase or repayment obligation or right
arising under the New Loan Agreement to the extent that it relates to an amount not more
than an amount required to be paid in respect of the Notes hereunder (but for the waiver
referred to below) and the requirement for the application of such amount to payment of the
Notes has been waived by all applicable New Noteholders in a written waiver that (x) is
executed at or about the time such purchase or repayment obligation or right arises and (y)
refers to the specific provision of this Agreement that is being waived and the amount to
which such waiver relates; provided that, no waiver or purported waiver of any right to
prepayment shall be effective unless it meets the criteria set forth in clauses (x) and
(y)); or

 

34

 

(h) the Company or any Significant Subsidiary (i) is generally not paying, or admits in
writing its inability to pay, its debts as they become due, (ii) files, or consents
by answer or otherwise to the filing against it of, a petition for relief or
reorganization or arrangement or any other petition in bankruptcy, for liquidation or to
take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar
law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv)
consents to the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its property, (v) is
adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose
of any of the foregoing; or

(i) a court or governmental authority of competent jurisdiction enters an order
appointing, without consent by the Company or any of its Significant Subsidiaries, a
custodian, receiver, trustee or other officer with similar powers with respect to it or with
respect to any substantial part of its property, or constituting an order for relief or
approving a petition for relief or reorganization or any other petition in bankruptcy or for
liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or
ordering the dissolution, winding-up or liquidation of the Company or any of its Significant
Subsidiaries, or any such petition shall be filed against the Company or any of its
Significant Subsidiaries and such petition shall not be dismissed within 60 days; or

(j) a final judgment or judgments for the payment of money aggregating in excess of
$1,000,000 (to the extent not paid or covered by insurance of a solvent insurance company
which has not denied responsibility) are rendered against one or more of the Company and its
Significant Subsidiaries and which judgments are not, within 60 days after entry thereof,
bonded, discharged or stayed pending appeal; or

(k) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the
Code for any plan year or part thereof or a waiver of such standards or extension of any
amortization period is sought or granted under Section 412 of the Code, (ii) a notice of
intent to terminate any Plan shall have been or is reasonably expected to be filed with the
PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or
appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any
ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the
aggregate “amount of unfunded benefit liabilities” (within the meaning of section
4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA,
shall exceed $5,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is
reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty
or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or
any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any
Subsidiary establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that would increase the liability of the
Company or any Subsidiary thereunder; and any such event or events described in clauses (i)
through (vi) above, either individually or together with any other such event or events,
would reasonably be expected to have a Material Adverse Effect. As used in this Section
10(k), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the
respective meanings assigned to such terms in Section 3 of ERISA; or

 

35

 

(l) the Liens created by the Security Documents shall at any time not constitute valid
and perfected Liens on the collateral intended to be covered thereby (to the extent
perfection by filing, registration, recordation or possession is required therein or in this
Agreement) in favor of the Collateral Trustee, free and clear of all other Liens (other than
Liens permitted under Section 9.5 or under the Security Documents), or, except for
expiration in accordance with its terms, any of the Security Documents shall for whatever
reason be terminated or cease to be in full force and effect, or the enforceability thereof
shall be contested by any Obligor.

SECTION 11. REMEDIES ON DEFAULT, ETC.

Section 11.1. Acceleration.

(a) If an Event of Default with respect to the Company described in paragraph (h) or
(i) of Section 10 (other than an Event of Default described in clause (i) of paragraph (h)
or described in clause (vi) of paragraph (h) by virtue of the fact that such clause
encompasses clause (i) of paragraph (h)) has occurred, all the Notes then outstanding shall
automatically become immediately due and payable.

(b) If any other Event of Default has occurred and is continuing, any holder or holders
of more than 50% in principal amount of the Notes at the time outstanding may at any time at
its or their option, by notice or notices to the Company, declare all the Notes then
outstanding to be immediately due and payable.

(c) If any Event of Default described in paragraph (a) or (b) of Section 10 has
occurred and is continuing, any two or more holders of Notes (other than Gores) holding in
the aggregate at least fifteen percent (15%) of the aggregate principal amount of the Notes
at the time outstanding (exclusive of the Notes held by Gores) affected by such Event of
Default may at any time, at their option, by notice or notices to the Company, declare all
the Notes held by them to be immediately due and payable.

Upon any Note’s becoming due and payable under this Section 11.1, whether automatically or by
declaration, such Note will forthwith mature and the entire unpaid principal amount of such Note,
plus (i) all accrued and unpaid interest thereon, shall all be immediately due and payable, in each
and every case without presentment, demand, protest or further notice, all of which are hereby
waived.

Section 11.2. Other Remedies. If any Default or Event of Default has occurred and is
continuing, and irrespective of whether any Notes have become or have been declared immediately due
and payable under Section 11.1, the holder of any Note at the time outstanding may proceed to
protect and enforce the rights of such holder by an action at law, suit in equity or other
appropriate proceeding, whether for the specific performance of any agreement contained herein or
in any Note, or for an injunction against a violation of any of the terms hereof or thereof or in
aid of the exercise of any power granted hereby or thereby or by law or otherwise; provided,
however, that no action may be taken in respect of the Security Documents without the
consent of the holders of the required percentage of the aggregate principal amount of the
Notes, as specified in the Amended and Restated Intercreditor and Collateral Trust Agreement.

 

36

 

Section 11.3. Rescission. At any time after any Notes have been declared due and payable
pursuant to clause (b) or (c) of Section 11.1, the holders of more than 50% in principal amount of
the Notes then outstanding, by written notice to the Company, may rescind and annul any such
declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all
principal of any Notes that are due and payable and are unpaid other than by reason of such
declaration, and all interest on such overdue principal in accordance with Section 7.1, (b) all
Events of Default and Defaults, other than non-payment of amounts that have become due solely by
reason of such declaration, have been cured or have been waived pursuant to Section 16, and (c) no
judgment or decree has been entered for the payment of any monies due pursuant hereto or to the
Notes. No rescission and annulment under this Section 11.3 will extend to or affect any subsequent
Event of Default or Default or impair any right consequent thereon.

Section 11.4. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no
delay on the part of any holder of any Note in exercising any right, power or remedy shall operate
as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right,
power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be
exclusive of any other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the obligations of the
Company under Section 14, the Company will pay to the holder of each Note on demand such further
amount as shall be sufficient to cover all costs and expenses of such holder incurred in any
enforcement or collection under this Section 11, including, without limitation, reasonable
attorneys’ fees, expenses and disbursements.

SECTION 12. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

Section 12.1. Registration of Notes. The Company shall keep at its principal executive office
a register for the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address of each transferee
of one or more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered shall be deemed and
treated as the owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note
that is an Institutional Investor promptly upon request therefor, a complete and correct copy of
the names and addresses of all registered holders of Notes.

 

37

 

Section 12.2. Transfer and Exchange of Notes.

(a) Upon surrender of any Note at the principal executive office of the Company for
registration of transfer or exchange (and in the case of a surrender for registration of
transfer, duly endorsed or accompanied by a written instrument of transfer duly executed by
the registered holder of such Note or its attorney duly authorized in writing and
accompanied by the address for notices of each transferee of such Note or part thereof) the
Company shall execute and deliver, at the Company’s expense (except
as provided below), one or more new Notes (as requested by the holder thereof) in
exchange therefor, and in an aggregate principal amount equal to the unpaid principal amount
of the surrendered Note. Each such new Note shall be payable to such Person as such holder
may request and shall be substantially in the form of Exhibit 1. Each such new Note shall
be dated and bear interest from the date to which interest shall have been last paid on the
surrendered Note or dated the date of the surrendered Note if no interest shall have been
paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or
governmental charge imposed in respect of any such transfer of Notes. Notes shall not be
transferred in denominations of less than $500,000, provided that if necessary to enable the
registration of transfer by a holder of its entire holding of Notes, one Note may be in a
denomination of less than $500,000.

(b) Any transferee of a Note, or purchaser of a participation therein, shall, by its
acceptance of such Note be deemed to have represented that such holder may (in reliance upon
information provided by the Company, which shall not be unreasonably withheld) make a
representation (which representation may be made in reliance on such information provided by
the Company) to the effect that at least one of the following statements is an accurate
representation as to each source of funds used by such holder to acquire such Note (the
“Source”):

(i) the Source was an “insurance company general account” within the meaning of
Department of Labor Prohibited Transaction Exemption (“PTE”) 95-60 (issued July 12,
1995) and there is no employee benefit plan, treating as a single plan all plans
maintained by the same employer or employee organization, with respect to which the
amount of the general account reserves and liabilities for all contracts held by or
on behalf of such plan, exceeds ten percent (10%) of the total reserves and
liabilities of such general account (exclusive of separate account liabilities) plus
surplus, as set forth in the NAIC Annual Statement for such transferee most recently
filed with such transferee’s state of domicile; or

(ii) the Source was either (i) an insurance company pooled separate account,
within the meaning of PTE 90-1 (issued January 29, 1990), or (ii) a bank collective
investment fund, within the meaning of the PTE 91-38 (issued July 12, 1991), and no
employee benefit plan or group of plans maintained by the same employer or employee
organization beneficially owns more than 10% of all assets allocated to such pooled
separate account or collective investment fund; or

 

38

 

(iii) the Source constituted assets of an “investment fund” (within the meaning
of Part V of the QPAM Exemption) managed by a “qualified professional asset manager”
or “QPAM” (within the meaning of Part V of the QPAM Exemption), and (A) no employee
benefit plan’s assets that are included in such investment fund, when combined with
the assets of all other employee benefit plans established or maintained by the same
employer or by an affiliate (within the meaning of Section V(c)(l) of the QPAM
Exemption) of such employer or by the same employee organization and managed by such
QPAM, exceed (1) 20% of the total client assets managed by such QPAM, or (2) 10% of
the assets of such investment fund, (B) the Company is not “related” to the
QPAM within the meaning of Part V(h) of the QPAM Exemption, (C) the conditions of
Part 1(c) and (g) of the QPAM Exemption are satisfied, and (D) neither the QPAM nor
a person controlling or controlled by the QPAM (applying the definition of “control”
in Section V(e) of the QPAM Exemption) owns a 10% or more interest in the Company;
or

(iv) the Source was a governmental plan; or

(v) the Source is an employee benefit plan and the use of its assets will not
constitute a non-exempt prohibited transaction under Title I of ERISA or Section
4975 of the Code; or

(vi) the Source did not include assets of any employee benefit plan, other than
a plan exempt from the coverage of ERISA.

As used in this Section 12.2(b), the terms “employee benefit plan”, “governmental plan”, “party in
interest” and “separate account” shall have the respective meanings assigned to such terms in
Section 3 of ERISA.

(c) Notwithstanding the foregoing, no holder of a Note shall transfer such Note or any
portion thereof if such transfer would be to a Competitor.

Section 12.3. Replacement of Notes. Upon receipt by the Company of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from such Institutional
Investor of such ownership and such loss, theft, destruction or mutilation), and

(a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it (provided that if the holder of such Note is, or is a nominee for, a New Noteholder or
another holder of a Note with a minimum net worth of at least $10,000,000, such Person’s own
unsecured agreement of indemnity shall be deemed to be satisfactory), or

(b) in the case of mutilation, upon surrender and cancellation thereof, the Company at
its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing
interest from the date to which interest shall have last been paid on such lost, stolen,
destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated
Note if no interest shall have been paid thereon.

SECTION 13. PAYMENTS ON NOTES.

Section 13.1. Place of Payment. Subject to Section 13.2, payments of principal and interest
becoming due and payable on the Notes shall be made in New York, New York at the principal office
of the Company in such jurisdiction. The Company may at any time, by notice to each holder of a
Note, change the place of payment of the Notes so long as such place of
payment shall be either the principal office of the Company in such jurisdiction or the
principal office of a bank or trust company in such jurisdiction.

 

39

 

Section 13.2. Home Office Payment. So long as any New Noteholder or any New Noteholder’s
nominee shall be the holder of any Note, and notwithstanding anything contained in Section 13.1 or
in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal
and interest by the method and at the address specified for such purpose for such New Noteholder on
Schedule A, or by such other method or at such other address as such New Noteholder shall have from
time to time specified to the Company in writing for such purpose, without the presentation or
surrender of such Note or the making of any notation thereon, except that upon written request of
the Company made concurrently with or reasonably promptly after payment or prepayment in full of
any Note, such New Noteholder shall surrender such Note for cancellation, reasonably promptly after
any such request, to the Company at its principal executive office or at the place of payment most
recently designated by the Company pursuant to Section 13.1. The Company will afford the benefits
of this Section 13.2 to any Institutional Investor that is the direct or indirect transferee of any
Note purchased by such New Noteholder under this Agreement and that has made the same agreement
relating to such Note as such New Noteholder has made in this Section 13.2.

SECTION 14. EXPENSES, ETC.

Section 14.1. Transaction Expenses. Whether or not the transactions contemplated hereby are
consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of
special counsel, and, if reasonably required, local or other specialist counsel in each case,
acting on behalf of all or substantially all of the holders of the Notes) incurred by the New
Noteholders in connection with such transactions and in connection with any amendments, waivers or
consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver
or consent becomes effective), including, without limitation (a) the costs and expenses incurred in
enforcing or defending (or determining whether or how to enforce or defend) any rights under this
Agreement or the Notes or in responding to any subpoena or other legal process or informal
investigative demand issued in connection with this Agreement or the Notes, or by reason of being a
holder of any Note, and (b) the costs and expenses, including financial advisors’ fees of financial
advisors acting on behalf of all or substantially all of the New Noteholders, incurred in
connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with
any work-out or restructuring of the transactions contemplated hereby and by the Notes. The
Company will pay, and will save each New Noteholder harmless from, all claims in respect of any
fees, costs or expenses, if any, of brokers and finders (other than those retained by the New
Noteholders or any of them).

Section 14.2. Survival. The obligations of the Company under this Section 14 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this
Agreement or the Notes, and the termination of this Agreement.

 

40

 

			
	SECTION 15.	 	SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

All representations and warranties contained herein shall survive the execution and delivery
of this Agreement and the Notes, the purchase or transfer by any original New Noteholder of any
Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by
any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf
of any original New Noteholder or any other holder of a Note. All statements contained in any
certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement
shall be deemed representations and warranties of the Company under this Agreement. Subject to the
preceding sentence, this Agreement and the other Financing Documents embody the entire agreement
and understanding between the New Noteholders and the Company and supersede all prior agreements
and understandings relating to the subject matter hereof.

SECTION 16. AMENDMENT AND WAIVER.

Section 16.1. Requirements. This Agreement and the Notes may be amended, and the observance
of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and
only with) the written consent of the Company and the Required Holders, except that (a) no
amendment or waiver of any of the provisions of Section 1, 2, 3, 4 or 5 hereof, or any defined term
(as it is used therein), will be effective as to any holder of Notes unless consented to by such
holder of Notes in writing, and (b) no such amendment or waiver may, without the written consent of
the holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of
Section 11 relating to acceleration or rescission, change the amount or time of any prepayment or
payment of principal of, or reduce the rate or change the time of payment or method of computation
of interest on the Notes, (ii) change the percentage of the principal amount of the Notes the
holders of which are required to consent to any such amendment or waiver, or (iii) amend any of
Section 7, 10(a), 10(b), 11, 16 or 19. Notwithstanding anything to the contrary contained herein
or in the other Financing Documents, a sale or merger of the Company’s “Metro” or “Network”
division(s) (and any related release of the Liens on the Collateral subject to such merger or sale)
shall require the consent of the Required Holders only.

Section 16.2. Solicitation of Holders of Notes.

(a) Solicitation. The Company will provide each holder of the Notes (irrespective of
the amount of Notes then owned by it) with sufficient information, sufficiently far in
advance of the date a decision is required, to enable such holder to make an informed and
considered decision with respect to any proposed amendment, waiver or consent in respect of
any of the provisions hereof or of the Notes. The Company will deliver executed or true and
correct copies of each amendment, waiver or consent effected pursuant to the provisions of
this Section 16 to each holder of outstanding Notes promptly following the date on which it
is executed and delivered by, or receives the consent or approval of, the requisite holders
of Notes.

 

41

 

(b) Payment. The Company will not directly or indirectly offer to pay, pay or cause to
be paid any remuneration, whether by way of supplemental or additional interest, fee or
otherwise, or grant any security, to any holder of Notes as consideration for or as an
inducement to the entering into by any holder of Notes of any waiver or amendment of any of
the terms and provisions hereof or of the Notes unless such remuneration is concurrently
offered to be paid or paid, or security is concurrently granted, on the same terms, ratably
to each holder of Notes then outstanding even if, in the case of an actual payment or grant,
such holder did not consent to such waiver or amendment.

(c) Consent in Contemplation of Transfer. Any consent made pursuant to this Section
16.2 by the holder of any Note that has transferred or has agreed to transfer such Note to
the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed
to provide such written consent as a condition to such transfer shall be void and of no
force or effect except solely as to such holder, and any amendments effected or waivers
granted or to be effected or granted that would not have been or would not be so effected or
granted but for such consent (and the consents of all other holders of Notes that were
acquired under the same or similar conditions) shall be void and of no force or effect
except solely as to such transferring holder.

Section 16.3. Binding Effect, Etc. Any amendment or waiver consented to as provided in this
Section 16 applies equally to all holders of Notes and is binding upon them and upon each future
holder of any Note and upon the Company without regard to whether such Note has been marked to
indicate such amendment or waiver. No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or
impair any right consequent thereon. No course of dealing between the Company and the holder of
any Note, nor any delay in exercising any rights hereunder or under any Note, shall operate as a
waiver of any rights of any holder of such Note. As used herein, the term “this Agreement” and
references thereto shall mean this Agreement as it may from time to time be amended or
supplemented.

Section 16.4. Notes Held by Company, Etc. Solely for the purpose of determining whether the
holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this Agreement or the
Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon
the direction of the holders of a specified percentage of the aggregate principal amount of Notes
then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates, other
than Gores Radio and its Affiliates, shall be deemed not to be outstanding (but Notes owned by
Gores Radio or any of its Affiliates shall be subject to Section 20.8(b)). The Company
acknowledges that ownership of Notes by the Company or an Affiliate (other than Gores Radio and its
Affiliates) would be a breach of Section 7.8.

 

42

 

SECTION 17. NOTICES.

All notices and communications provided for hereunder shall be in writing and sent (a) by
telefacsimile if the sender on the same day sends a confirming copy of such notice by a
recognized overnight delivery service (charges prepaid), or (b) by registered or certified
mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery
service (with charges prepaid). Any such notice must be sent:

(i) if to a New Noteholder or such New Noteholder’s nominee, to such New
Noteholder or such New Noteholder’s nominee at the address specified for such
communications in Schedule A, or at such other address as such New Noteholder or
such New Noteholder’s nominee shall have specified to the Company in writing,

(ii) if to any other holder of any Note, to such holder at such address as such
other holder shall have specified to the Company in writing, or

(iii) if to the Company, to the Company at its address set forth at the
beginning hereof to the attention of Chief Financial Officer and Executive Vice
President and General Counsel, or at such other address as the Company shall have
specified to the holder of each Note in writing.

Notices under this Section 17 will be deemed given (i) if sent by facsimile, on the date sent, (ii)
if by registered or certified mail, on the third Business Day following the date such mail is
posted and (iii) if by recognized overnight delivery service, on the next day following the day
such notice is deposited with such service.

SECTION 18. REPRODUCTION OF DOCUMENTS.

This Agreement and all documents relating thereto, including, without limitation, (a)
consents, waivers and modifications that may hereafter be executed, (b) documents received by each
New Noteholder at the Closing (except the Notes themselves), and (c) financial statements,
certificates and other information previously or hereafter furnished to each New Noteholder, may be
reproduced by such New Noteholder by any photographic, photostatic, microfilm, microcard, miniature
photographic or other similar process and such New Noteholder may destroy any original document so
reproduced. The Company agrees and stipulates that, to the extent permitted by applicable law, any
such reproduction shall be admissible in evidence as the original itself in any judicial or
administrative proceeding (whether or not the original is in existence and whether or not such
reproduction was made by such New Noteholder in the regular course of business) and any
enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in
evidence. This Section 18 shall not prohibit the Company or any other holder of Notes from
contesting any such reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such reproduction.

 

43

 

SECTION 19. CONFIDENTIAL INFORMATION.

For
the purposes of this Section 19, “Confidential
Information” means information
delivered to the New Noteholders by or on behalf of the Company or any Subsidiary in connection
with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary
in nature and that was clearly marked or labeled or otherwise adequately identified
when received by such New Noteholder as being confidential information of the Company or such
Subsidiary, provided that such term does not include information that (a) was publicly known or
otherwise known to such New Noteholder prior to the time of such disclosure, (b) subsequently
becomes publicly known through no act or omission by such New Noteholder or any Person acting on
such New Noteholder’s behalf, (c) otherwise becomes known to such New Noteholder other than through
(1) disclosure by the Company or any Subsidiary or (2) disclosure by any other Person which
disclosure such New Noteholder knows is in violation of a confidentiality obligation to the Company
or (d) constitutes financial statements delivered to such New Noteholder under Section 6.1 that are
otherwise publicly available. Each New Noteholder will maintain the confidentiality of such
Confidential Information in accordance with procedures adopted by such New Noteholder in good faith
to protect confidential information of third parties delivered to such New Noteholder, provided
that such New Noteholder may deliver or disclose Confidential Information to (i) such New
Noteholder’s directors, trustees, officers, employees, agents, attorneys and affiliates (to the
extent such disclosure reasonably relates to the administration of the investment represented by
such New Noteholder’s Notes), (ii) such New Noteholder’s financial advisors and other professional
advisors who shall agree to hold confidential the Confidential Information substantially in
accordance with the terms of this Section 19, (iii) any other holder of any Note, (iv) any
Institutional Investor or its advisors (excluding Competitors) to which such New Noteholder sells
or offers to sell such Note or any part thereof or any participation therein (if such Person has
agreed in writing prior to its receipt of such Confidential Information to be bound by the
provisions of this Section 19), (v) any Person from which such New Noteholder offers to purchase
any security of the Company (if such Person (excluding Competitors) has agreed in writing prior to
its receipt of such Confidential Information to be bound by the provisions of this Section 19),
(vi) any Person (excluding Competitors) that is an actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Company and its obligations (if
such Person has agreed in writing prior to its receipt of such Confidential Information to be bound
by the provisions of this Section 19), (vii) any federal or state regulatory authority having
jurisdiction over such New Noteholder, (viii) the National Association of Insurance Commissioners
or any similar organization, or any nationally recognized rating agency that requires access to
information about such New Noteholder’s investment portfolio, or (ix) any other Person to which
such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law,
rule, regulation or order applicable to such New Noteholder, (x) in response to any subpoena or
other legal process, provided, however, in the case of any subpoena or other legal process to which
such New Noteholder is not a party, such New Noteholder will not disclose any Confidential
Information to the extent that (A) prior to the date on which such New Noteholder is required to
disclose such Confidential Information the Company has obtained and delivered a final
non-appealable order of protection with respect to such Confidential Information and (B) compliance
with such order of protection would not cause such New Noteholder to be in violation of such
subpoena or other legal process, (y) in connection with any litigation to which such New Noteholder
is a party or (z) if an Event of Default has occurred and is continuing, to the extent such New
Noteholder may reasonably determine such delivery and disclosure to be necessary or appropriate in
the enforcement or for the protection of the rights and remedies under such New Noteholder’s Notes
and this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have
agreed to be bound by and to be entitled to the benefits of this
Section 19 as though it were a party to this Agreement. On reasonable request by the Company
in connection with the delivery to any holder of a Note of information required to be delivered to
such holder under this Agreement or requested by such holder (other than a holder that is a party
to this Agreement or its nominee or any other holder that shall have previously delivered such a
confirmation), such holder will confirm in writing that it is bound by the provisions of this
Section 19. In connection with clause (i) above, each New Noteholder agrees to be responsible for
any breach of this Section 19 by such New Noteholder’s directors, officers, employees, agents,
attorneys and affiliates.

 

44

 

SECTION 20. MISCELLANEOUS.

Section 20.1. Successors and Assigns. All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent holder of a Note)
whether so expressed or not.

Section 20.2. Payments Due on Non-Business Days. Anything in this Agreement or the Notes to
the contrary notwithstanding, any payment of principal of interest on any Note that is due on a
date other than a Business Day shall be made on the next succeeding Business Day without including
the additional days elapsed in the computation of the interest payable on such next succeeding
Business Day; provided that if the maturity date of any Note is a date other than a Business Day,
the payment otherwise due on such maturity date shall be made on the next succeeding Business Day
and shall include the additional days elapsed in the computation of interest payable on such next
succeeding Business Day.

Section 20.3. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other jurisdiction.

Section 20.4. Construction. Each covenant contained herein shall be construed (absent express
provision to the contrary) as being independent of each other covenant contained herein, so that
compliance with any one covenant shall not (absent such an express contrary provision) be deemed to
excuse compliance with any other covenant. Where any provision herein refers to action to be taken
by any Person, or which such Person is prohibited from taking, such provision shall be applicable
whether such action is taken directly or indirectly by such Person.

Section 20.5. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original, facsimile or pdf copy but all of which together shall
constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed
by fewer than all, but together signed by all, of the parties hereto.

Section 20.6. Governing Law. This Agreement shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the law of the State of New
York excluding choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.

 

45

 

Section 20.7. USA Patriot Act.

Each New Noteholder hereby notifies the Company that pursuant to the requirements of the USA
Patriot Act, such New Noteholder may be required to obtain, verify and record information that
identifies the Company, which information includes the name and address of the Company and other
information that will allow such New Noteholder to identify the Company in accordance with the USA
Patriot Act.

Section 20.8. Certain Provisions Applicable to Gores Solely in Gores’ Capacity and Status as a
New Noteholder and Not in Any Other Capacity or Status.

(a) At any time when Gores Radio, or any of its Affiliates, is a New Noteholder, Gores
Radio solely in its capacity and status as a New Noteholder and not in any other capacity or
status, will not, and will not permit any such Affiliate, solely in its capacity and status
as a New Noteholder and not in any other capacity or status to, oppose, contest, object to
or in any manner attempt to modify a position advocated, or a course of action supported, or
any other action or inaction taken, by the holders of a majority in principal amount
outstanding of Notes, such majority being determined without counting the Notes held by
Gores Radio or its Affiliates (including, without limitation, any such position advocated or
course of action supported in any bankruptcy, insolvency or equivalent or similar proceeding
involving the Company or any Subsidiary Guarantor).

(b) With respect to any action subject to the approval of the Required Holders under
this Agreement, all Notes held by Gores Radio, or any of its Affiliates, shall be deemed to
have been voted in favor of the position of the holders of a majority in principal amount
outstanding of Notes (such majority being determined without counting the votes of the Notes
held by Gores Radio or any of its Affiliates). With respect to any vote in any bankruptcy,
insolvency or equivalent or similar proceeding involving the Company or any Subsidiary
Guarantor, the Notes held by Gores Radio or any of its Affiliates shall be deemed to have
been voted for or against any action or other matter (including, without limitation, the
provision of any financing, request for relief from the automatic stay, adequate protection,
asset disposition or Chapter 11 plan) subject to a vote of the holders of the Notes in the
same proportions as all other Notes are voted by all other New Noteholders in respect of
such action or other matter. Gores Radio hereby irrevocably agrees, on behalf of itself and
its Affiliates, and the Company and the other Existing Creditors agree that this Agreement
shall constitute an agreement or consent in writing, solely in the capacity and status of
Gores Radio and its Affiliates as New Noteholders and not in any other capacity or status,
to (i) any proposed waiver, amendment or modification of this Agreement or the other
Financing Documents (other than any proposed waiver, amendment or modification subject to
Section 16.1) and (ii) any request made by the Required Holders hereunder or under the
Financing Documents. Gores Radio hereby further agrees, on behalf of itself and its
Affiliates, that none of them shall be entitled to any consent or similar fee or other consideration paid or given to
the New Noteholders in connection with any waiver, amendment or modification of this
Agreement or any other Financing Document (other than any such waiver, amendment or
modification subject to Section 16.1).

 

46

 

(c) Gores Radio represents that (a) other than as set forth in the proviso below, the
amount of consideration paid for the Existing Debt purchased by Gores Radio in connection
with the Purchase Transaction did not exceed $0.28 for each $1.00 of Existing Debt purchased
and (b) that each Pre-Closing Existing Lender and Pre-Closing Existing Noteholder that
accepted the Purchaser Offer received the same consideration; provided, that Gores Radio
paid $1.00 for each $1.00 of accrued and unpaid interest on such Existing Debt to such
Pre-Closing Existing Lenders.

(d) Gores Radio agrees that neither it, nor any of its Affiliates, shall be entitled to
any information developed by counsel or any financial advisor acting on behalf of one or
more New Noteholders (or, for the avoidance of doubt, by any other New Noteholder) in
connection with any of the matters referred to in Section 14.1, provided that nothing herein
shall prevent the Company from sharing any such information with Gores Radio or any of its
Affiliates to the extent it is disclosed to the Company. Gores Radio hereby acknowledges
and agrees that, on behalf of itself and its Affiliates notwithstanding any provision in
this Agreement or any custom or convention to the contrary, the other New Noteholders and
their advisers, or any of them, may hold discussions with respect to matters of concern to
them relating to the Company or any of its Affiliates or this Agreement or any other
Financing Document without inviting or permitting participation therein by Gores Radio, its
Affiliates or their respective representatives or sharing with Gores Radio, its Affiliates
or their respective representatives any transcript, summary or other report thereof or any
materials prepared to facilitate or further such discussions or otherwise requested in
connection therewith. In the event of any conflict between the foregoing sentence and
Section 16.2(a) of this Agreement or any other provision of any Financing Document, the
foregoing sentence shall control.

(e) Any actions or votes (or deemed actions or votes) of Gores Radio or its Affiliates
provided for in this section shall apply to Gores Radio and its Affiliates solely in their
capacity and status as New Noteholders and not in any other capacity or status. The
Existing Creditors and the Company acknowledge and agree that this Section 20.8 shall not
limit or restrict, in any way, the absolute right and discretion of Gores Radio and its
Affiliates to act or vote on behalf of any its interests, claims, or debt other than the
Notes contrary to the provisions of this section.

[Intentionally Left Blank — Signature Page Follows]

 

47

 

The execution hereof by each New Noteholder shall constitute a contract among the Company and
such New Noteholder for the uses and purposes hereinabove set forth.

	 	 	 	 	 
	 	Very truly yours,

WESTWOOD ONE, INC.

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

The foregoing Agreement is hereby

agreed to as of the date thereof.

	 	 	 	 	 	 	 	 	 
	GORES RADIO HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	The Gores Group, LLC,	 	 
	 	 	its Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Steven G. Eisner	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Steven G. Eisner	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 

 

48

 

	 	 	 	 	 	 	 	 	 
	ING LIFE INSURANCE AND ANNUITY COMPANY
	RELIASTAR LIFE INSURANCE COMPANY	 	 
	SECURITY LIFE OF DENVER INSURANCE COMPANY	 	 
	(successor by merger to Southland Life Insurance Company)	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	ING Investment Management LLC, 
as Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Christopher P. Lyons	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christopher P. Lyons	 	 
	 

	 	 	 	Title:
	 	Senior Vice President	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 	 	 
	NEW YORK LIFE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	/s/ Gail A. McDermott	 	 
	 	 	 	 	 
	 	 	Name:	 	Gail A. McDermott	 	 
	 	 	Title:	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	New York Life Investment Management LLC,	 	 
	 	 	its Investment Manager	 	 

	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Gail A. McDermott	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Gail A. McDermott	 	 
	 

	 	 	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 
	NEW YORK LIFE INSURANCE AND ANNUITY	 	 
	CORPORATION INSTITUTIONALLY OWNED	 	 
	LIFE INSURANCE SEPARATE ACCOUNT (BOLI 3)	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	New York Life Investment Management LLC,	 	 
	 	 	its Investment Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Gail A. McDermott	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Gail A. McDermott	 	 
	 

	 	 	 	Title:
	 	Managing Director	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	ALLSTATE LIFE INSURANCE COMPANY
	 
	 	 	 	 	 	 
	By:	 	/s/ Breege Farrell	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Breege Farrell	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Allen Dick	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Allen Dick	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	MONUMENTAL LIFE INSURANCE COMPANY
	 
	 	 	 	 	 	 
	By:	 	/s/ Bill Henricksen	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Bill Henricksen	 	 
	 

	 	Title:
	 	Vice President	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 	 	 
	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	Babson Capital Management LLC	 	 
	 	 	as Investment Adviser	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Elisabeth A. Perenick	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Elisabeth A. Perenick	 	 
	 

	 	 	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 
	C.M. LIFE INSURANCE COMPANY
	 
	 	 	 	 	 	 	 	 
	By:	 	Babson Capital Management LLC	 	 
	 	 	as Investment Adviser	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Elisabeth A. Perenick	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Elisabeth A. Perenick	 	 
	 

	 	 	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 
	MASSMUTUAL ASIA LIMITED
	 
	 	 	 	 	 	 	 	 
	By:	 	Babson Capital Management LLC	 	 
	 	 	as Investment Adviser	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Elisabeth A. Perenick	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Elisabeth A. Perenick	 	 
	 

	 	 	 	Title:
	 	Managing Director	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	NATIONWIDE LIFE INSURANCE COMPANY
	NATIONWIDE MUTUAL INSURANCE COMPANY	 	 
	NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY	 	 
	NATIONWIDE LIFE INSURANCE COMPANY OF AMERICA	 	 
	SCOTTSDALE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Thomas A. Gleason	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Thomas A. Gleason	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 	 	 
	HARTFORD FIRE INSURANCE COMPANY
	 
	 	 	 	 	 	 	 	 
	By:	 	Hartford Investment Management Company,	 	 
	 	 	Its Agent and Attorney-in-Fact	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Ralph D. Witt	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ralph D. Witt	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 	 	 
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	Prudential Investment Management, Inc.,	 	 
	 	 	as investment manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Payl H. Procyk	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Paul H.. Procyk	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 	 	 
	AMERITAS LIFE INSURANCE CORP.
	 
	 	 	 	 	 	 	 	 
	By:	 	Summit Investment Partners, as Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Andrew S. White	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Andrew S. White	 	 
	 

	 	 	 	Title:
	 	Managing Director — Private Placements	 	 
	 
	 	 	 	 	 	 	 	 
	ACACIA LIFE INSURANCE COMPANY
	 
	 	 	 	 	 	 	 	 
	By:	 	Summit Investment Partners, as Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Andrew S. White	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Andrew S. White	 	 
	 

	 	 	 	Title:
	 	Managing Director — Private Placements	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	JPMORGAN CHASE BANK, N.A.,
	as Administrative Agent and Lender
	 
	 	 	 	 	 	 
	By:	 	/s/ Neil Boylan	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Neil Boylan	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A.
	 
	 	 	 	 	 	 
	By:	 	/s/ F.A. Zagar	 	 
	 	 	 	 	 
	 

	 	Name:
	 	F.A. Zagar	 	 
	 

	 	Title:
	 	SVP	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	SUNTRUST BANK
	 
	 	 	 	 	 	 
	By:	 	/s/ Kip Hurd	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Kip Hurd	 	 
	 

	 	Title:
	 	First Vice President	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	E.SUN COMMERCIAL BANK, LTD.,
	LOS ANGELES BRANCH
	 
	 	 	 	 	 	 
	By:	 	/s/ Homer Hou	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Homer Hou	 	 
	 

	 	Title:
	 	AVP & Credit Manager	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	THE BANK OF NEW YORK MELLON
	 
	 	 	 	 	 	 
	By:	 	/s/ Gordon B. Berger	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Gordon B. Berger	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	UNION BANK, N.A.
	 
	 	 	 	 	 	 
	By:	 	/s/ Daniel J. Isenberg	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Daniel J. Isenberg	 	 
	 

	 	Title:
	 	Vice President	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	BANK OF TOKYO-MITSUBISHI UFJ TRUST COMPANY	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ David Noda	 	 
	 	 	 	 	 
	 

	 	Name:
	 	David Noda	 	 
	 

	 	Title:
	 	VP and Manager	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

	 	 	 	 	 	 	 
	FIRST COMMERCIAL BANK, NEW YORK AGENCY	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Jenn-Hwa Wang	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Jenn-Hwa Wang	 	 
	 

	 	Title:
	 	VP & General Manager	 	 

[Signature page to Securities Purchase Agreement (Westwood One, Inc.)]

 

 

 

SCHEDULE A

INFORMATION RELATED TO NEW NOTEHOLDERS

 

 

 

SCHEDULE A-1

[Intentionally
Omitted]

 

 

 

SCHEDULE A-2

[Intentionally
Omitted]

 

 

 

SCHEDULE B

DEFINED TERMS

Where the character or amount of any asset or liability or item of income or expense is
required to be determined or any consolidation or other accounting computation is required to be
made for the purposes of this Agreement, the same shall be done in accordance with GAAP, to the
extent applicable, except where such principles are inconsistent with the express requirements of
this Agreement.

Where any provision in this Agreement refers to action to be taken by any Person, or which
such Person is prohibited from taking, such provision shall be applicable whether the action in
question is taken directly or indirectly by such Person; provided that such actions may be limited
to a particular capacity or status.

As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:

“Administrative Agent Letter” means the letter, dated the Restructuring Effective Date,
executed by the Company and the Existing Credit Agreement Administrative Agent providing for the
payment of a fee to the Existing Credit Agreement Administrative Agent in connection with the
Restructuring.

“Affiliate” means, at any time, and with respect to any Person, any other Person that at such
time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is
under common Control with, such first Person. As used in this definition, “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or
otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a
reference to an Affiliate of the Company.

“Agreement” is defined in Section 16.3.

“Amended and Restated Guarantee” is defined in Section 3.10.

“Amended and Restated Intercreditor and Collateral Trust Agreement” is defined in Section
3.11.

“Amendment, Restatement and Combination Transactions” is defined in Section 1.2(b).

“Amendment to Trademarks Security Agreement” is defined in Section 3.14.

“Anti-Terrorism Order” means Executive Order No. 13,224 of September 23, 2001, Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49079 (2001), as amended.

 

B-1

 

“Applicable Interest Law” means any present or future law (including, without limitation, the
laws of the State of New York and the United States of America) which has application to the
interest and other charges pursuant to this Agreement and the Notes.

“April Mortgage and Security Agreement” means that certain Mortgage and Security Agreement,
dated as of April 9, 2009, by the Company as amended by the April Mortgage Modification and as may
be further amended, restated or modified from time to time.

“April Mortgage Modification” is defined in Section 3.16(b).

“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial
banks in New York City are required or authorized to be closed.

“Capital Expenditures” means, with respect to any Person, all payments which would be required
to be shown in a statement of cash flows of such Person under GAAP for fixed assets or
improvements, replacements, substitutions or additions thereto that have a useful life of more than
1 year; provided that Capital Expenditures shall not include any Investment permitted hereunder.
For purposes of this definition, the purchase price of equipment that is purchased simultaneously
with the trade-in of existing equipment or with insurance proceeds shall be included in Capital
Expenditures only to the extent of the gross amount of such purchase price less the credit granted
by the seller of such equipment for the equipment being traded in at such time or the amount of
such proceeds, as the case may be.

“Capital Lease” means, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

“Capitalized Interest Amount” is defined in Section 7.1(b).

“Cash Equivalents” means any of the following types of Investments meeting the criteria set
forth below at the time such Investment is made, to the extent owned by the Company or any of its
Restricted Subsidiaries free and clear of all Liens (other than Liens created under the Financing
Documents and Liens permitted hereunder):

(a) readily marketable obligations issued or directly and fully guaranteed or insured
by the United States of America or any agency or instrumentality thereof having maturities
of not more than 360 days from the date of acquisition thereof; provided that the full faith
and credit of the United States of America is pledged in support thereof;

(b) time deposits with, or insured certificates of deposit or bankers’ acceptances of,
any commercial bank that (i) (A) is a New Noteholder or (B) is organized under the laws of
the United States of America, any state thereof or the District of Columbia or is the
principal banking subsidiary of a bank holding company organized under the laws of the
United States of America, any state thereof or the District of Columbia, and is a member of
the Federal Reserve System, (ii) issues (or the parent of which issues) commercial paper
rated as described in clause (c) of this definition and (iii)
has combined capital and surplus of at least $500,000,000, in each case with maturities
of not more than 90 days from the date of acquisition thereof;

 

B-2

 

(c) commercial paper maturing no more than one year from the date of creation thereof
and at the time of acquisition, having a rating of at least P-1 from Moody’s or a rating of
at least A-1 from S&P; and

(d) Investments, classified in accordance with GAAP as current assets of the Company or
any of its Restricted Subsidiaries, in money market investment programs registered under the
Investment Company Act of 1940, which are administered by financial institutions that have
the highest rating obtainable from either Moody’s or S&P at the time such Investment is
made, and the portfolios of which are limited solely to Investments of the character,
quality and maturity described in clauses (a), (b) and (c) of this definition at the time
such Investment is made.

“Change of Control” means an event or series of events other than the Transaction by which:

(a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries,
and any person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) other than Gores Radio or an Affiliate of Gores Radio
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
except that a person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time (such right, an “option right”)),
directly or indirectly, of a majority of the Equity Interests of the Company entitled to
vote for members of the board of directors or equivalent governing body of the Company on a
fully-diluted basis (and taking into account all such securities that such “person” or
“group” has the right to acquire pursuant to any option right); or

(b) during any period of 12 consecutive months, a majority of the members of the board
of directors or other equivalent governing body of the Company cease to be composed of
individuals (i) who were members of that board or equivalent governing body on the first day
of such period, (ii) whose election or nomination to that board or equivalent governing body
was approved by Gores (so long as it holds a majority of the outstanding Equity Interests of
the Company) or by individuals referred to in clause (i) above constituting at the time of
such election or nomination at least a majority of that board or equivalent governing body
or (iii) whose election or nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of that board or equivalent governing
body (excluding, in the case of both clause (ii) and clause (iii), any individual whose
initial nomination for, or assumption of office as, a member of that board or equivalent
governing body occurs as a result of an actual or threatened solicitation of proxies or
consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of one or
more directors by or on behalf of the board of directors).

 

B-3

 

“Change of Control Prepayment Date” is defined in Section 7.4(a).

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time.

“Collateral” has the meaning set forth in the Amended and Restated Intercreditor and
Collateral Trust Agreement.

“Collateral Account Control Agreement” means that certain Collateral Account Control
Agreement, dated as of April 10, 2008, among the Company, the Collateral Trustee and Banc of
America Securities LLC.

“Collateral Trustee” means the Person acting as collateral trustee for the New Noteholders
under the Amended and Restated Intercreditor and Collateral Trust Agreement and the other Security
Documents.

“Company” is defined in the introductory paragraph of this Agreement.

“Competitor” means each of the corporations on Schedule B-1 hereto as supplemented from time
to time by the Company pursuant to written notice to each holder of the Notes, provided that in no
event shall any Institutional Investor within the meaning of clauses (a) and (c) of such term be
deemed to be a Competitor for purposes of this Agreement.

“Confidential information” is defined in Section 19.

“Consolidated EBITDA” means, for any period, the Consolidated Net Income of the Company and
its Restricted Subsidiaries for such period:

(a) minus any net gain or plus any loss arising from the sale or other disposition of
capital assets;

(b) plus any provision for taxes based on income or profits of the Company and its
Restricted Subsidiaries;

(c) plus the consolidated net interest expense of the Company and its Restricted
Subsidiaries;

(d) plus depreciation, amortization and other non-cash losses, charges or expenses of
the Company and its Restricted Subsidiaries (including impairment of intangibles and
goodwill);

(e) minus any “extraordinary,” “unusual,” “special” or “non-recurring” earnings or
gains or plus any “extraordinary,” “unusual,” “special” or “non-recurring” losses, charges
or expenses;

 

B-4

 

(f) plus restructuring expenses or charges;

(g) plus non-cash compensation recorded from grants of stock appreciation or similar
rights, stock options, restricted stock or other rights;

(h) plus any Permitted Glendon/Affiliate Payments;

(i) plus any Transaction Costs;

(j) minus any deferred credit (or amortization of a deferred credit) arising from the
acquisition of any Person; and

(k) minus any non-cash items increasing such Consolidated Net Income (including,
without limitation, any write-up of assets);

in each case to the extent taken into account in the determination of such Consolidated Net Income,
and determined without duplication and on a consolidated basis in accordance with GAAP.
Consolidated EBITDA shall be calculated on a pro forma basis to give effect to any acquisition or
asset sale permitted hereunder consummated at any time on or after the first day of the applicable
measurement period as if such acquisition or asset sale had been effected on the first day of such
period.

“Consolidated Net Income” means, for any period, the aggregate net income of the Company and
its Restricted Subsidiaries for such period, on a consolidated basis, determined in accordance with
GAAP; provided that:

(a) the net income for such period of any Person (other than a Restricted Subsidiary)
in which the Company or any of its Restricted Subsidiaries has an ownership interest shall
be included only to the extent such net income shall have actually been received by the
Company or such Restricted Subsidiary in the form of cash distributions; and

(b) the cumulative effect of a change in accounting principles will be excluded.

“Continuing Debt” is defined in Section 1.2(b).

“Contractual Obligations” means, as to any Person, any provision of any security issued by
such Person or of any agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

“Convertible Preferred Stock” means the 8.0% Series B Convertible Preferred Stock of the
Company.

“Culver City” means the property subject to the Lien created by the Deed of Trust, as amended
by the Deed of Trust Modification and as further amended, restated or modified from time to time.

 

B-5

 

“Debt” with respect to any Person means, at any time, without duplication,

(a) its liabilities for borrowed money and its redemption obligations in respect of
mandatorily redeemable Preferred Stock;

(b) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable arising in the ordinary course of business but including all
liabilities created or arising under any conditional sale or other title retention agreement
with respect to any such property);

(c) all liabilities appearing on its balance sheet in accordance with GAAP in respect
of Capital Leases;

(d) all liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable for such
liabilities);

(e) all its liabilities in respect of letters of credit or instruments serving a
similar function issued or accepted for its account by banks and other financial
institutions (whether or not representing obligations for borrowed money); and

(f) any Guaranty of such Person with respect to liabilities of a type described in any
of clauses (a) through (e) hereof.

“Deed of Trust” means that certain Shared Deed of Trust, Assignment of Rents, Security
Agreement and Fixture Filing, dated as of February 28, 2008, by the Company as amended by the Deed
of Trust Modification and as further amended, restated or modified from time to time.

“Deed of Trust Modification” is defined in Section 3.15.

“Default” means an event or condition the occurrence or existence of which would, with the
lapse of time or the giving of notice or both, become an Event of Default.

“Deposit Accounts Control Agreement” means that certain Deposit Accounts Control Agreement,
dated as of April 10, 2008, among the Company, Westwood One Stations-NYC, Inc., the Collateral
Trustee and Bank of America, N.A.

“Domestic Subsidiary” means any Subsidiary of the Company organized under the laws of any
jurisdiction within the United States.

“Environmental Laws” means any and all applicable and legally binding federal, state, local,
and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental restrictions relating to
pollution and the protection of the environment or the release of any materials into the
environment, including but not limited to those related to hazardous substances or wastes, air
emissions and discharges to waste or public systems.

 

B-6

 

“Environmental Permits” means any and all permits, licenses, registrations, notifications,
exemptions and any other authorization required under any Environmental Law.

“Equity Contribution Documents” shall mean all of the documents evidencing or setting forth
the rights, obligations and agreements of the Company and the investors with respect to the New
Gores Equity Investment, including without limitation, the Certificate of Designations setting
forth the terms of the Convertible Preferred Stock.

“Equity Interests” means, with respect to any Person, all of the shares of capital stock of
(or other ownership or profit interests in) such Person, all of the warrants, options or other
rights for the purchase or acquisition from such Person of shares of capital stock of (or other
ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are outstanding on any date of
determination.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated thereunder from time to time in effect.

“ERISA Affiliate” means any trade or business (whether or not incorporated) that is
treated as a single employer together with the Company under Section 414 of the Code.

“Event of Default” is defined in Section 10.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Excluded Perfection Assets” means (i) any equipment that is covered by a certificate of
title, (ii) any foreign intellectual property, (iii) commercial tort claims, (iv) FCC Licenses and
(v) any assets, the perfection of which requires the recording of a mortgage or deed of trust
delivered on the Restructuring Effective Date as described in the Security Documents.

“Existing Credit Agreement” is defined in Section 1.1.

“Existing Credit Agreement Administrative Agent” is defined in Section 1.1.

“Existing Creditors” is defined in Section 1.1.

“Existing Debt” means all obligations outstanding immediately prior to the consummation of the
Amendment, Restatement and Combination Transactions, under or in respect of the Existing Notes and
the Existing Loans, including, without limitation, all interest (including, without limitation,
accrued and unpaid interest on such Existing Debt), principal, fees or other obligations.

“Existing Lenders” is defined in Section 1.1.

 

B-7

 

“Existing Loans” is defined in Section 1.1.

“Existing Note Purchase Agreement” is defined in Section 1.1.

“Existing Notes” is defined in Section 1.1.

“Existing Noteholders” is defined in Section 1.1.

“Existing Series A Notes” is defined in Section 1.1.

“Existing Series B Notes” is defined in Section 1.1.

“FCC Licenses” is defined in Section 4.6.

“Fee Letters” means the letter agreement, dated January 15, 2009, between Gores Radio and the
Company in connection with the reimbursement of fees and expenses incurred by Chanin Capital
Partners and the letter agreement, dated January 28, 2009, between Gores Radio and the Company in
connection with the reimbursement of the fees and expenses incurred by Gores.

“Financing Documents” means this Agreement, the Notes, the Amended and Restated Guarantee, the
Security Documents, the New Term Loan Subordination Agreement, the Gores Subordination Agreement
and the Master Mutual Release Agreement, as each may be amended, restated or otherwise modified
from time to time, and all other documents to be executed and/or delivered in favor of any holder
of Notes, or all of them, by the Company, any of its Subsidiaries, or any other Person in
connection with this Agreement.

“GAAP” means generally accepted accounting principles as in effect from time to time in the
United States of America.

“Glendon Partners” means Glendon Partners, Inc.

“Gores” means Gores Radio and its Affiliates.

“Gores Parties” Gores Capital Partners II, L.P. and Gores Co-Invest Partnership II, L.P.

“Gores Radio” means Gores Radio Holdings, LLC, a limited liability company organized under the
laws of the State of Delaware.

“Gores Subordination Agreement” is defined in Section 3.12(b).

“Governing Documents” means the certificate of formation, articles or certificate of
incorporation, articles or certificate of organization, by-laws, partnership agreement, operating
agreement, or other organizational or governing documents of any Person.

 

B-8

 

“Governmental Authority” means

(a) the government of

(i) the United States of America or any State or other political
subdivision thereof, or

(ii) any jurisdiction in which the Company or any Subsidiary conducts
all or any part of its business, or which asserts jurisdiction over any
properties of the Company or any Subsidiary, or

(b) any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.

“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person
in any manner, whether directly or indirectly, including (without limitation) obligations incurred
through an agreement, contingent or otherwise, by such Person:

(a) to purchase such Debt or obligation or any property constituting security therefor;

(b) to advance or supply funds (i) for the purchase or payment of such Debt or
obligation, or (ii) to maintain any working capital or other balance sheet condition or any
income statement condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such Debt or obligation;

(c) to lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such Debt or obligation of the ability of any other Person to make
payment of the Debt or obligation; or

(d) otherwise to assure the owner of such Debt or obligation against loss in respect
thereof.

In any computation of the Debt or other liabilities of the obligor under any Guaranty, the Debt or
other obligations that are the subject of such Guaranty shall be assumed to be direct obligations
of such obligor, provided, however, if such Guaranty is limited by its terms to a lesser amount,
the amount of such Guaranty shall be limited to such lesser amount.

“holder” means, with respect to any Note, the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 12.1.

“HSR Act” is defined in Section 4.7.

“Institutional Investor” means (a) each of the Existing Creditors, (b) any holder of a Note
holding more than 10% of the aggregate principal amount of the Notes then outstanding, and (c) any
bank, trust company, savings and loan association or other financial institution, any pension plan,
any investment company, any insurance company, any broker or dealer, or any other similar financial
institution or entity, regardless of legal form.

 

B-9

 

“Intellectual Property” is defined in Section 4.11.

“Interest Payment Date” is defined in Section 7.1(a).

“Investment” means, as to any Person, (a) the purchase or other acquisition of Equity
Interests of another Person, (b) a loan, advance or capital contribution to, Guaranty or assumption
of debt of, or purchase or other acquisition of any other debt or interest in, another Person, or
(c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of
another Person that constitute a business unit, or all or a substantial part of the business, of
such Person. An “Investment” shall include any transaction described in the preceding sentence
whether done directly or indirectly. The amount of any Investment shall be the original cost of
such Investment plus the cost of all additions thereto, without any adjustments for increases or
decreases in value, or write-ups, write-downs or write-offs with respect to such Investment;
provided that the amount of any Investment shall be reduced by the amount of all cash payments
received with respect thereto, whether as principal, interest, dividends, repayments or otherwise.

“Investor Rights Agreement” is defined in Section 3.18.

“Library Assets” means the Company’s collection of previously broadcast programs and segments,
which includes live concert performances, artist interviews, daily news programs, sports and
entertainment features, Capitol Hill hearings and other special events.

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title retention agreement or
Capital Lease, upon or with respect to any property or asset of such Person (including in the case
of stock, stockholder agreements, voting trust agreements and all similar agreements).

“Master Mutual Release Agreement” is defined in Section 3.17.

“Material” means material in relation to the business, operations, affairs, financial
condition, assets or properties of the Company and its Subsidiaries taken as a whole.

“Material Adverse Effect” means a material adverse effect on (a) the business, operations,
affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a
whole, (b) the Transaction, (c) the ability of the Company or any Subsidiary to perform its
obligations under this Agreement or any other Transaction Document, or (d) the validity or
enforceability of this Agreement or any other Transaction Document.

“Materials of Environmental Concern” means any gasoline or petroleum (including, without
limitation, crude oil or any fraction thereof) or petroleum products or any hazardous or toxic
substances, materials or wastes defined or regulated as such in or under any Environmental Law,
including, without limitation, asbestos, polychlorinated biphenyls and ureaformaldehyde insulation.

 

B-10

 

“Maximum Legal Rate of Interest” means the maximum rate of interest that a holder of Notes may
from time to time legally charge the Company by agreement and in regard to which the Company would
be prevented successfully from raising the claim or defense of usury under the Applicable Interest
Law as now or hereafter construed by courts having appropriate jurisdiction.

“Metro Division” means the division of the Company that provides traffic, news, sports and
weather reports and information programming to radio and television stations.

“Moody’s” means Moody’s Investors Service, Inc.

“Mortgage and Security Agreement” means that certain Mortgage and Security Agreement, dated as
of February 28, 2008, by the Company as amended by the Mortgage Modification and as may be further
amended, restated or modified from time to time.

“Mortgage Modification” is defined in Section 3.16(a).

“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
Section 4001(a)(3) of ERISA).

“NAIC” means the National Association of Insurance Commissioners or any successor thereto.

“Network Division” means the division of the Company that provides radio station affiliates
with news, sports, talk, music and special event programming.

“New Gores Equity Investment” is defined in Section 3.20(b).

“New Loan Agreement” means the Credit Agreement, dated as of April 23, 2009, by and among the
Company, the lenders from time to time party thereto and Wells Fargo Foothill, LLC, as
administrative agent for the lenders and as a lender, as amended or refinanced from time to time to
the extent permitted by the terms hereof and of the New Term Loan Subordination Agreement or the
Gores Subordination Agreement, as applicable.

“New Loan Agreement Documents” means the New Loan Agreement and all other documents to be
executed and/or delivered in connection with the New Loan Agreement, including without limitation,
the documentation relating to Gores Parties’ Guaranty of the facilities established thereunder.

“New Noteholder” is defined in Section 2.2.

“New Revolver” means that certain senior revolving line of credit in the original principal
amount of $15,000,000 established under the New Loan Agreement which is not secured by any property
of the Company or any Restricted Subsidiary.

 

B-11

 

“New Term Loan” means that certain subordinated term loan in the original principal amount of
$20,000,000 advanced under the New Loan Agreement which is not secured by any property of the
Company or any Restricted Subsidiary.

“New Term Loan Subordination Agreement” is defined in Section 3.12(a).

“Notes” is defined in Section 2.2.

“Obligor” is defined in the Amended and Restated Intercreditor and Collateral Trust Agreement.

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any
other officer of the Company whose responsibilities extend to the subject matter of such
certificate.

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any
successor thereto.

“Permitted Amounts” means (i) an aggregate of $15,000,000 with respect to all Debt under
revolving credit commitments incurred under the New Loan Agreement Documents (and any amendments,
refinancings, refundings, renewals or extensions thereof) and (ii) an aggregate of $23,500,000
(plus the amount of any interest capitalized and added to interest in accordance with the
Subordination Agreements) with respect to all other Debt incurred under the New Loan Agreement
Documents (and any amendments, refinancings, refundings, renewals or extensions thereof).

“Permitted Glendon/Affiliate Payments” means payments made at the Company’s discretion to
Gores Radio (and its Affiliates including, without limitation, Glendon Partners) for consulting
services provided to the Company and its Subsidiaries not in excess of:

(a) $1,500,000 in the aggregate in calendar year 2009 for such services provided during
or prior to calendar year 2009 and

(b) $1,000,000 in the aggregate in each calendar year thereafter for services provided
in each such year.

“Permitted Library Assets Transactions” means (i) licenses of Library Assets and (ii) entry
into and performance in respect of revenue and/or profit sharing arrangements (and other similar
arrangements) with respect to revenue and/or profits generated by the Library Assets, in each case
for a period not in excess of 10 years unless terminable by the Company or any Restricted
Subsidiary upon no more than 180 days notice.

“Person” means an individual, partnership, corporation, business trust, joint stock company,
trust, unincorporated association, joint venture, Governmental Authority or other entity of
whatever nature.

“Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) that is or,
within the preceding five years, has been established or maintained, or to which contributions
are or, within the preceding five years, have been made or required to be made, by the Company
or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any
liability.

 

B-12

 

“Pre-Closing Existing Creditors” is defined in Section 1.1.

“Pre-Closing Existing Lenders” is defined in Section 1.1.

“Pre-Closing Existing Noteholders” is defined in Section 1.1.

“Preferred Stock” means any class of capital stock of a corporation that is preferred over any
other class of capital stock of such corporation as to the payment of dividends or the payment of
any amount upon liquidation or dissolution of such corporation.

“property” or “properties” means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

“PTE” is defined in Section 12.2(b)(i).

“Purchase Transaction” is defined in Section 3.20(a).

“QPAM Exemption” means Prohibited Transaction Class Exemption 84-14 issued by the
United States Department of Labor.

“Reporting Month” is defined in Section 6.4.

“Requested Waivers” is defined in Section 1.2.

“Required Holders” means, at any time, the holders of more than 50% in principal amount of the
Notes at the time outstanding.

“Responsible Officer” means any Senior Financial Officer, Senior Vice President of Finance and
any other officer of the Company with responsibility for the administration of the relevant portion
of this Agreement.

“Restricted Payment” means

(a) any dividend or other distribution (whether in cash, securities or other property)
with respect to any capital stock or other Equity Interest of any Person or any of its
Subsidiaries, or any payment (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement,
defeasance, acquisition, cancellation or termination of any such capital stock or other
Equity Interest, or on account of any return of capital to any Person’s stockholders,
partners or members (or the equivalent of any thereof), or any option, warrant or other
right to acquire any such dividend or other distribution or payment; and

 

B-13

 

(b) any payment, repayment, redemption, retirement, repurchase or other acquisition,
direct or indirect, by the Company or any Subsidiary of, on account of or in respect of, the
principal of any Debt that is subordinated in right of payment to the Notes prior to the
regularly scheduled maturity date thereof except in circumstances in which payment of the
New Term Loan would not constitute an Event of Default under Section 10(g)(iii) and except
for the repayment of cash to Gores as contemplated by the last parenthetical expression in
Section 9.5(j) (including without limitation, the New Term Loan, and excluding, for the
avoidance of doubt, the New Revolver);

provided, for the avoidance of doubt, the conversion of the Convertible Preferred Stock into common
stock of the Company (as contemplated by the Equity Contribution Documents) shall not constitute a
Restricted Payment.

“Restricted Subsidiary” means each Subsidiary of the Company.

“Restructuring Closing” is defined in Section 2.1.

“Restructuring Effective Date” is defined in Section 2.1.

“Sale-Leaseback Transaction” means a transaction pursuant to which the Company shall sell or
transfer to any Person (other than a Subsidiary) any property and, as part of the same transaction,
the Company shall rent or lease as lessee, or similarly acquire the right to possession or use of,
such property which it intends to use for the same purpose.

“Satisfaction Transactions” is defined in Section 1.2(c).

“Satisfied Existing Debt” is defined in Section 1.2(c).

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

“Security Agreement” means that certain Shared Security Agreement, dated as of February 28,
2008, by the Company, each of the Subsidiary Guarantors, the Existing Credit Agreement
Administrative Agent and the Collateral Trustee, as amended by the Security Agreement Amendment and
as further amended, restated or modified from time to time.

“Security Agreement Amendment” is defined in Section 3.13.

“Security Documents” means the Amended and Restated Intercreditor and Collateral Trust
Agreement, the Security Agreement, the Security Agreement Amendment, the Trademarks Security
Agreement, the Amendment to Trademarks Security Agreement, the Deposit Accounts Control Agreement,
the Collateral Account Control Agreement, the Deed of Trust, the Deed of Trust Modification, the
Mortgage and Security Agreement, the Mortgage Modification, the April Mortgage and Security
Agreement, the April Mortgage Modification, as each may be amended, restated or otherwise modified
from time to time, and any other pledge agreement, security agreement, assignment agreement,
account control agreement, mortgage, deed of trust, collateral agreement or other instrument
providing for collateral security on property of the Company or
any of its Subsidiaries to be executed and/or delivered in favor of any holder of Notes, or
all of them, by the Company, any of its Subsidiaries, or any other Person in connection therewith.

 

B-14

 

“Senior Debt Leverage Ratio” means, as of the last day of any fiscal quarter, the aggregate
principal amount of the Notes outstanding at such time divided by Consolidated EBITDA for the
period of four fiscal quarters of the Company ending on such date. For purposes of determining
compliance with the Senior Debt Leverage Ratio, any election by the Company to measure an item of
Debt using fair value (as permitted by Statement of Financial Accounting Standards Nos. 15 and 159)
shall be disregarded and such determination shall be made as if such election had not been made.

“Senior Financial Officer” means the chief financial officer, principal accounting
officer, Senior Vice President of Finance, treasurer or comptroller of the Company.

“Significant Subsidiary” means at any time any Subsidiary that would at such time constitute a
“significant subsidiary” (as such term is defined in Regulation S-X of the Securities
and Exchange Commission as in effect on the Restructuring Effective Date) of the Company and, in
any event, shall include all Subsidiary Guarantors.

“Source” is defined in Section 12.2(b).

“S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc.

“Subsidiary” means, as to any Person, a corporation, partnership or other entity of
which shares of stock or other ownership interests having ordinary voting power (other than stock
or such other ownership interests having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement
shall refer to a Subsidiary or Subsidiaries of the Company.

“Subsidiary Guarantor” means Westwood One Radio, Inc., a California corporation, Westwood One
Radio Networks, Inc., a Delaware corporation, Westwood National Radio Corporation, a Delaware
corporation, Westwood One Stations-NYC, Inc., a Delaware corporation, Westwood One Properties,
Inc., a Delaware corporation, Smartroute Systems, Inc., a Delaware corporation, Metro Networks,
Inc., a Delaware corporation, Metro Networks Communications, Inc, a Maryland corporation, Metro
Networks Services, Inc., a Delaware corporation, Metro Networks Communications, Limited
Partnership, TLAC, Inc., a Delaware corporation and each other Person that subsequent to the date
of this Agreement becomes a party to the Amended and Restated Guarantee in accordance with Section
8.6 of this Agreement.

“Trademarks Security Agreement” means that certain Short-Form Trademarks Security Agreement,
dated as of February 28, 2008, by the Company and Metro Networks Communications, Inc., as amended
by the Amendment to Trademarks Security Agreement and as may be further amended, restated or
modified from time to time.

 

B-15

 

“Transaction” shall mean, collectively, (i) the Amendment, Restatement and Combination
Transactions, the Satisfaction Transactions, the grant of the Requested Waivers, and the execution,
delivery and performance by the Company and the Subsidiary Guarantors of this Agreement and the
other Financing Documents, the Equity Contribution Documents and the New Loan Agreement Documents,
in each case, to which they are a party, (ii) the entry into (or the initial funding under) the New
Loan Agreement Documents and the Equity Contribution Documents, and (iii) the payment of all fees
and expenses in connection with the foregoing.

“Transaction Costs” means all of the fees, costs and expenses paid or to be paid (or incurred
or to be incurred) by the Company in connection with the Transaction.

“Transaction Documents” means the Financing Documents, the Equity Contribution Documents and
the New Loan Agreement Documents.

“UCC” means the Uniform Commercial Code as in effect in the State of New York on the
Restructuring Effective Date.

“USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of
2001, as amended from time to time, and the rules and regulations promulgated thereunder from time
to time in effect.

 

B-16

 

SCHEDULES

[Intentionally omitted]

 

 

 

EXHIBIT 1

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE
SECURITIES LAWS OF ANY STATE, AND, ACCORDINGLY MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED
OF UNTIL IT HAS BEEN SO REGISTERED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR IF AN
EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH
REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”). Beginning on May 1, 2009, the
holder of this Note may, upon request, obtain from the Company the Note’s issue price, issue date,
amount of OID and yield to maturity by contacting the Chief Financial Officer at 40 West 57th
Street, 5th Floor, New York, New York 10019.

[Form of Senior Secured Note]

Westwood One, Inc.

15.00% Senior Secured Note due July 15, 2012

			
	 	 	 
	No. [_____]
	 	[Date]
	$[                                        ]
	 	PPN: 961815 A#4

For Value Received, the undersigned, Westwood One, Inc. (herein called the
“Company”), a corporation organized and existing under the laws of the State of Delaware, hereby
promises to pay to [_________], or registered assigns, the principal sum of
[_________] Dollars on July 15, 2012, with interest (computed on the basis of a
360-day year of twelve 30-day months) on the unpaid balance thereof at a rate equal to the rate
provided in Section 7.1 of the Securities Purchase Agreement (defined below) and on the dates
provided in Section 7.1 of the Securities Purchase Agreement. Capitalized terms used herein and
not otherwise defined herein shall have the respective meanings ascribed thereto in the Securities
Purchase Agreement.

Payments of principal of and interest on this Note are to be made in lawful money of the
United States of America at the principal office of the Company in New York, New York or at such
other place as the Company shall have designated by written notice to the holder of this Note as
provided in the Securities Purchase Agreement referred to below.

This Note is one of a series of Senior Secured Notes (herein called the “Notes”) issued
pursuant to the Securities Purchase Agreement, dated as of April 23, 2009 (as may be amended from
time to time, the “Securities Purchase Agreement”), between the Company and the respective New
Noteholders named therein, and is entitled to the benefits thereof. Each holder of this Note
(including, without limitation, any transferee of this Note), will be deemed, by its acceptance of
this Note, (i) to have agreed to the confidentiality provisions set forth in Section 19 of the
Securities Purchase Agreement, (ii) to have made the representations, understandings and
acknowledgements in Section 5 of the Securities Purchase Agreement and (iii) with respect to
any transferee, to have made the representation to the effect that at least one of the statements
set forth in Section 12.2(b)(i)-(vi) of the Securities Purchase Agreement is an accurate
representation as to each source of funds used by such holder to acquire this Note, as provided
therein.

 

 

 

This Note is a registered Note and, as provided in the Securities Purchase Agreement, upon
surrender of this Note for registration of transfer in accordance with Section 12.2 of the
Securities Purchase Agreement, duly endorsed, or accompanied by a written instrument of transfer
duly executed, by the registered holder hereof or such holder’s attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and registered in the name of,
the transferee. Prior to due presentment for registration of transfer, the Company may treat the
person in whose name this Note is registered as the owner hereof for the purpose of receiving
payment and for all other purposes, and the Company will not be affected by any notice to the
contrary.

This Note is subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Securities Purchase Agreement, but not otherwise.

Pursuant to the Amended and Restated Guarantee, certain subsidiaries of the Company have
absolutely and unconditionally guaranteed payment in full of the principal of and interest on this
Note and the performance by the Company of all of its obligations contained in the Securities
Purchase Agreement all as more fully set forth in said Amended and Restated Guarantee.

If an Event of Default, as defined in the Securities Purchase Agreement, occurs and is
continuing, the principal of this Note may be declared or otherwise become due and payable in the
manner, at the price and with the effect provided in the Securities Purchase Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the law of the State of New York excluding choice-of-law principles of the
law of such State that would require the application of the laws of a jurisdiction other than such
State.

	 	 	 	 	 
	 	WESTWOOD ONE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

 

EXHIBITS

[Intentionally omitted]

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