Document:

exv10w1

Exhibit 10.1

LOCAL.COM CORPORATION

KRILLION, INC.

SCREAMIN MEDIA GROUP, INC.

LOAN AND SECURITY AGREEMENT

 

 

This LOAN AND SECURITY AGREEMENT (the “Agreement”) is entered into as of August 3, 2011, by and
between Square 1 Bank (“Bank”) and Local.com Corporation, Krillion, Inc., and Screamin Media Group,
Inc. collectively known as (“Borrower”).

RECITALS

Borrower wishes to obtain credit from time to time from Bank, and Bank desires to extend credit to
Borrower. This Agreement sets forth the terms on which Bank will advance credit to Borrower, and
Borrower will repay the amounts owing to Bank.

AGREEMENT

The parties agree as follows:

     1. DEFINITIONS AND CONSTRUCTION.

          1.1 Definitions. As used in this Agreement, all capitalized terms shall have the definitions
set forth on Exhibit A. Any term used in the Code and not defined herein shall have the meaning
given to the term in the Code.

          1.2 Accounting Terms. Any accounting term not specifically defined on Exhibit A shall be
construed in accordance with GAAP and all calculations shall be made in accordance with GAAP
(except for non-compliance with FAS 123R in monthly reporting). The term “financial statements”
shall include the accompanying notes and schedules.

     2. LOAN AND TERMS OF PAYMENT.

          2.1 Credit Extensions.

               (a) Promise to Pay. Borrower promises to pay to Bank, in lawful money of the United States of
America, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower,
together with interest on the unpaid principal amount of such Credit Extensions at rates in
accordance with the terms hereof.

               (b) Advances Under Formula Revolving Line.

                    (i) Amount. Subject to and upon the terms and conditions of this Agreement, including but
not limited to the restriction that under no circumstances shall the aggregate amount of
outstanding Advances exceed the Total Facility Cap, Borrower may request Formula Advances in an
aggregate outstanding principal amount not to exceed the lesser of: (A) the Formula Revolving
Line; or (B) the Borrowing Base, less any amounts outstanding under the Ancillary
Services Sublimit. Amounts borrowed pursuant to this Section 2.1(b) may be repaid and reborrowed
at any time prior to the Formula Revolving Maturity Date, at which time all Formula Advances under
this Section 2.1(b) shall be immediately due and payable. Borrower may prepay any Formula
Advances without penalty or premium. Formula Advances shall be used to provide short-term working
capital for Borrower’s operations.

1.

 

                    (ii) Form of Request. Whenever Borrower desires a Formula Advance, Borrower will notify Bank
by facsimile transmission, telephone or email no later than 5:30 p.m. Eastern time (4:30 p.m.
Eastern time for wire transfers), on the Business Day that the Formula Advance is to be made.
Each such notification shall be promptly confirmed by a Loan Advance/Paydown Request Form in
substantially the form of Exhibit C. Bank is authorized to make Formula Advances under this
Agreement, based upon instructions received from a Responsible Officer or a designee of a
Responsible Officer, or without instructions if in Bank’s discretion such Formula Advances are
necessary to meet Obligations which have become due and remain unpaid. Bank shall be entitled to
rely on any telephonic or email notice given by a person whom Bank reasonably believes to be a
Responsible Officer or a designee thereof, and Borrower shall indemnify and hold Bank harmless for
any damages, loss, costs and expenses suffered by Bank as a result of such reliance. Bank will
credit the amount of Formula Advances made under this Section 2.1(b) to Borrower’s deposit
account.

                    (iii) Ancillary Services Sublimit. Subject to the availability under the Formula Revolving
Line, at any time and from time to time from the date hereof through the Business Day immediately
prior to the Formula Revolving Maturity Date, Borrower may request the provision of Ancillary
Services from Bank. The aggregate limit of the Ancillary Services shall not exceed the Ancillary
Services Sublimit, provided that availability under the Formula Revolving Line shall be reduced by
the aggregate limits of (i) corporate credit card services provided to Borrower, (ii) the total
amount of any Automated Clearing House processing reserves, (iii) the applicable Foreign Exchange
Reserve Percentage, and (v) any other reserves taken by Bank in connection with other treasury
management services requested by Borrower and approved by Bank. In addition, Bank may, in its
sole discretion, charge as Formula Advances any amounts for which Bank becomes liable to third
parties in connection with the provision of the Ancillary Services. The terms and conditions
(including repayment and fees) of such Ancillary Services shall be subject to the terms and
conditions of the Bank’s standard forms of application and agreement for the applicable Ancillary
Services, which Borrower hereby agrees to execute.

                    (iv) Collateralization of Obligations Extending Beyond Maturity. If Borrower has not secured
to Bank’s satisfaction its obligations with respect to any Ancillary Services by the Formula
Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held
by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower’s name
(and any interest paid thereon or proceeds thereof, including any amounts payable upon the
maturity or liquidation of such certificates or accounts), shall automatically secure such
obligations to the extent of the then continuing or outstanding Ancillary Services. Borrower
authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any
requests by Borrower or any other Person to pay or otherwise transfer any part of such balances
for so long as the applicable Ancillary Services are outstanding or continue.

               (c) Advances Under Non-Formula Revolving Line.

                    (i) Amount. Subject to and upon the terms and conditions of this Agreement, including but
not limited to the restriction that under no circumstances shall the aggregate amount of
outstanding Advances exceed the Total Facility Cap, Borrower may

2.

 

request Non-Formula Advances in an aggregate outstanding principal amount not to exceed the
Non-Formula Revolving Line. Amounts borrowed pursuant to this Section 2.1(c) may be repaid and
reborrowed at any time prior to the Non-Formula Revolving Maturity Date, at which time all
Non-Formula Advances under this Section 2.1(c) shall be immediately due and payable. Borrower may
prepay any Non-Formula Advances without penalty or premium. Non-Formula Advances shall be used to
provide short-term working capital for Borrower’s operations.

                    (ii) Form of Request. Whenever Borrower desires a Non-Formula Advance, Borrower will notify
Bank by facsimile transmission, telephone or email no later than 5:30 p.m. Eastern time (4:30 p.m.
Eastern time for wire transfers), on the Business Day that the Non-Formula Advance is to be made.
Each such notification shall be promptly confirmed by a Loan Advance/Paydown Request Form in
substantially the form of Exhibit C. Bank is authorized to make Non-Formula Advances under this
Agreement, based upon instructions received from a Responsible Officer or a designee of a
Responsible Officer, or without instructions if in Bank’s discretion such Non-Formula Advances are
necessary to meet Obligations which have become due and remain unpaid. Bank shall be entitled to
rely on any telephonic or email notice given by a person whom Bank reasonably believes to be a
Responsible Officer or a designee thereof, and Borrower shall indemnify and hold Bank harmless for
any damages, loss, costs and expenses suffered by Bank as a result of such reliance. Bank will
credit the amount of Non-Formula Advances made under this Section 2.1(c) to Borrower’s deposit
account.

          2.2 Overadvances. If the aggregate amount of the outstanding Formula Advances exceeds the
lesser of the Formula Revolving Line or the Borrowing Base at any time, Borrower shall immediately
pay to Bank, in Cash, the amount of such excess. If the aggregate amount of the outstanding
Non-Formula Advances exceeds the Non-Formula Revolving Line at any time, Borrower shall immediately
pay to Bank, in Cash, the amount of such excess. If the aggregate amount of the outstanding
Advances exceeds the Total Facility Cap at any time, Borrower shall immediately pay to Bank, in
Cash, the amount of such excess.

          2.3 Interest Rates, Payments, and Calculations.

               (a) Interest Rates.

                    (i) Formula Line Advances. Except as set forth in Section 2.3(b), the Formula Advances shall
bear interest, on the outstanding daily balance thereof, at a variable annual rate equal to the
greater of: (A) 1.75% above the Prime Rate then in effect; or (B) 5.00%.

                    (ii) Non-Formula Line Advances and Term Loan. Except as set forth in Section 2.3(b), the
Non-Formula Advances shall bear interest, on the outstanding daily balance thereof, at a variable
annual rate equal to the greater of: (A) 2.00% above the Prime Rate then in effect; or (B) 5.25%.

               (b) Late Fee; Default Rate. If any payment is not made within 15 days after the date such
payment is due, Borrower shall pay Bank a late fee equal to the lesser of

3.

 

(i) 5% of the amount of such unpaid amount or (ii) the maximum amount permitted to be charged
under applicable law. All Obligations shall bear interest, from and after the occurrence and
during the continuance of an Event of Default, at a rate equal to 5 percentage points above the
interest rate applicable immediately prior to the occurrence of the Event of Default.

               (c) Payments. Interest under the Formula Revolving Line and under the Non-Formula Revolving
Line shall be due and payable on the first calendar day of each month during the term hereof. Bank
shall, at its option, charge such interest, all Bank Expenses, and all Periodic Payments against
any of Borrower’s deposit accounts or against the Formula Revolving Line and the Non-Formula
Revolving Line, in which case those amounts shall thereafter accrue interest at the rate then
applicable hereunder. Any interest not paid when due shall be compounded by becoming a part of the
Obligations, and such interest shall thereafter accrue interest at the rate then applicable
hereunder.

               (d) Computation. In the event the Prime Rate is changed from time to time hereafter, the
applicable rate of interest hereunder shall be increased or decreased, effective as of the day the
Prime Rate is changed, by an amount equal to such change in the Prime Rate. All interest
chargeable under the Loan Documents shall be computed on the basis of a 360 day year for the actual
number of days elapsed.

          2.4 Crediting Payments. Prior to the occurrence of an Event of Default, Bank shall credit a
wire transfer of funds, check or other item of payment to such deposit account or Obligation as
Borrower specifies. After the occurrence and during the continuance of an Event of Default, Bank
shall have the right, in its sole discretion, to immediately apply any wire transfer of funds,
check, or other item of payment Bank may receive to conditionally reduce Obligations, but such
applications of funds shall not be considered a payment on account unless such payment is of
immediately available federal funds or unless and until such check or other item of payment is
honored when presented for payment. Notwithstanding anything to the contrary contained herein, any
wire transfer or payment received by Bank after 5:30 p.m. Eastern time shall be deemed to have been
received by Bank as of the opening of business on the immediately following Business Day. Whenever
any payment to Bank under the Loan Documents would otherwise be due (except by reason of
acceleration) on a date that is not a Business Day, such payment shall instead be due on the next
Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for
the period of such extension.

          2.5 Fees. Borrower shall pay to Bank the following:

               (a) Facility Fee. On the earlier of (i) the first anniversary of the Closing Date or (ii) the
termination of this Agreement by Borrower, a fee equal to $25,000, which shall be nonrefundable;

               (b) Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date,
with legal expenses to equal no more than $5,500, provided that there are no more than 2 turns of
the Loan Documents drafts and that UCC and corporate good standing searches will not be subject to
the aforementioned $5,500 limit. After the Closing Date, all Bank Expenses, as and when they become
due.

4.

 

               (c) Unused Fee. Paid quarterly in arrears, a fee in the amount of 0.25% of the following
calculation: (i) the average aggregate principal amount of Credit Extensions available to Borrower
hereunder during the applicable fiscal quarter (the “Average Available Amount”); less (ii) the
average principal amount of Credit Extensions outstanding during the applicable fiscal quarter
(“Average Outstandings”); provided however, that if the Average Outstandings are greater than or
equal to 40.0% of the Average Available Amount, no unused fee shall be owed for that fiscal
quarter.

          2.6 Term. This Agreement shall become effective on the Closing Date and, subject to Section
12.7, shall continue in full force and effect for so long as any Obligations remain outstanding or
Bank has any obligation to make Credit Extensions under this Agreement. Notwithstanding the
foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under
this Agreement immediately and without notice upon the occurrence and during the continuance of an
Event of Default.

     3. CONDITIONS OF LOANS.

          3.1 Conditions Precedent to Closing. The agreement of Bank to enter into this Agreement on
the Closing Date is subject to the condition precedent that Bank shall have received, in form and
substance satisfactory to Bank, each the following items and completed each of the following
requirements:

               (a) this Agreement;

               (b) an officer’s certificate of Borrower with respect to incumbency and resolutions
authorizing the execution and delivery of this Agreement;

               (c) a financing statement (Form UCC-1);

               (d) payment of the fees and Bank Expenses then due specified in Section 2.5, which may be
debited from any of Borrower’s accounts with Bank;

               (e) current SOS Reports indicating that except for Permitted Liens, there are no other
security interests or Liens of record in the Collateral;

               (f) current financial statements, including audited statements for Borrower’s most recently
ended fiscal year, together with an unqualified opinion (or an opinion qualified only for going
concern so long as Borrower’s investors provide additional equity as needed), company prepared
consolidated and consolidating balance sheets and income statements for the most recently ended
month in accordance with Section 6.2, and such other updated financial information as Bank may
reasonably request;

               (g) current Compliance Certificate in accordance with Section 6.2;

               (h) a Borrower Information Certificate;

               (i) Borrower shall have opened and funded not less than $50,000 in deposit accounts held with
Bank;

5.

 

               (j) a payoff letter from Silicon Valley Bank in form and substance satisfactory to Bank;

               (k) confirmation by Borrower to Bank that all existing Indebtedness (excluding potential
liabilities relating the to “earn out” provision of the acquisition) owed by Local.com Corporation
related to its acquisition of Screamin Media Group, Inc. has been indefeasibly repaid in full; and

               (l) such other documents or certificates, and completion of such other matters, as Bank may
reasonably request.

          3.2 Conditions Precedent to all Credit Extensions. The obligation of Bank to make each Credit
Extension, including the initial Credit Extension, is contingent upon the Borrower’s compliance
with Section 3.1 above, and is further subject to the following conditions:

               (a) timely receipt by Bank of the Loan Advance/Paydown Request Form as provided in Section
2.1;

               (b) Borrower shall have transferred substantially all of its Cash assets into operating
accounts held with Bank and otherwise be in compliance with Section 6.6 hereof;

               (c) the representations and warranties contained in Section 5 shall be true and correct in all
material respects on and as of the date of such Loan Advance/Paydown Request Form and on the
effective date of each Credit Extension as though made at and as of each such date, and no Event of
Default shall have occurred and be continuing, or would exist after giving effect to such Credit
Extension (provided, however, that those representations and warranties expressly referring to
another date shall be true, correct and complete in all material respects as of such date). The
making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on
the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2;
and

               (d) completion of an initial audit of the Collateral, the results of which shall be
satisfactory to Bank.

     4. CREATION OF SECURITY INTEREST.

          4.1 Grant of Security Interest. Borrower grants and pledges to Bank a continuing security
interest in the Collateral to secure prompt repayment of any and all Obligations and to secure
prompt performance by Borrower of each of its covenants and duties under the Loan Documents.
Except for Permitted Liens or as disclosed in the Schedule, such security interest constitutes a
valid, first priority security interest in the presently existing Collateral, and will constitute a
valid, first priority security interest in later-acquired Collateral. Borrower also hereby agrees
not to sell, transfer, assign, mortgage, pledge, lease, grant a security

6.

 

interest in, license (other than in the ordinary course of Borrower’s business), or encumber
any of its Intellectual Property. Notwithstanding any termination, of this Agreement or of any
filings undertaken related to Bank’s rights under the Code, Bank’s Lien on the Collateral shall
remain in effect for so long as any Obligations are outstanding.

          4.2 Perfection of Security Interest. Borrower authorizes Bank to file at any time financing
statements, continuation statements, and amendments thereto that (i) either specifically describe
the Collateral or describe the Collateral as all assets of Borrower of the kind pledged hereunder,
and (ii) contain any other information required by the Code for the sufficiency of filing office
acceptance of any financing statement, continuation statement, or amendment, including whether
Borrower is an organization, the type of organization and any organizational identification number
issued to Borrower, if applicable. Borrower shall have possession of the Collateral, except where
expressly otherwise provided in this Agreement or where Bank chooses to perfect its security
interest by possession in addition to the filing of a financing statement. Where Collateral is in
possession of a third party bailee, Borrower shall take such steps as Bank reasonably requests for
Bank to (i) subject to Section 7.10 below, obtain an acknowledgment, in form and substance
satisfactory to Bank, of the bailee that the bailee holds such Collateral for the benefit of Bank,
and (ii) obtain “control” of any Collateral consisting of investment property, deposit accounts,
letter-of-credit rights or electronic chattel paper (as such items and the term “control” are
defined in Revised Article 9 of the Code) by causing the securities intermediary or depositary
institution or issuing bank to execute a control agreement in form and substance satisfactory to
Bank. Borrower will not create any chattel paper without placing a legend on the chattel paper
acceptable to Bank indicating that Bank has a security interest in the chattel paper. Borrower
from time to time may deposit with Bank specific cash collateral to secure specific Obligations;
Borrower authorizes Bank to hold such specific balances in pledge and to decline to honor any
drafts thereon or any request by Borrower or any other Person to pay or otherwise transfer any part
of such balances for so long as the specific Obligations are outstanding. Borrower shall take such
other actions as Bank requests to perfect its security interests granted under this Agreement.

     5. REPRESENTATIONS AND WARRANTIES.

     Borrower represents and warrants as follows:

          5.1 Due Organization and Qualification. Borrower and each Subsidiary is a corporation duly
existing under the laws of the state in which it is organized and qualified and licensed to do
business in any state in which the conduct of its business or its ownership of property requires
that it be so qualified, except where the failure to do so would not reasonably be expected to
cause a Material Adverse Effect.

          5.2 Due Authorization; No Conflict. The execution, delivery, and performance of the Loan
Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor
constitute a breach of any provision contained in Borrower’s Articles of Incorporation or Bylaws,
nor will they constitute an event of default under any material agreement by which Borrower is
bound. Borrower is not in default under any agreement by which it is bound, except to the extent
such default would not reasonably be expected to cause a Material Adverse Effect.

7.

 

          5.3 Collateral. Borrower has rights in or the power to transfer the Collateral, and its title
to the Collateral is free and clear of Liens, adverse claims, and restrictions on transfer or
pledge except for Permitted Liens. Other than movable items of personal property such as laptop
computers, all Collateral having an aggregate book value not in excess of $100,000, is located
solely in the Collateral States. The Eligible Accounts are bona fide existing obligations. The
property or services giving rise to such Eligible Accounts has been delivered or rendered to the
account debtor or its agent for immediate shipment to and unconditional acceptance by the account
debtor. Borrower has not received notice of actual or imminent Insolvency Proceeding of any
account debtor whose accounts are included in any Borrowing Base Certificate as an Eligible
Account. All Inventory is in all material respects of good and merchantable quality, free from all
material defects, except for Inventory for which adequate reserves have been made. Except as set
forth in the Schedule, none of the Borrower’s Cash is maintained or invested with a Person other
than Bank or Bank’s affiliates.

          5.4 Intellectual Property Collateral. Borrower is the sole owner of the intellectual property
created or purchased by Borrower, except for licenses granted by Borrower to its customers in the
ordinary course of business. To the best of Borrower’s knowledge, each of the Copyrights,
Trademarks and Patents is valid and enforceable, and no part of the intellectual property created
or purchased by Borrower has been judged invalid or unenforceable, in whole or in part, and no
claim has been made to Borrower that any part of the intellectual property created or purchased by
Borrower violates the rights of any third party except to the extent such claim would not
reasonably be expected to cause a Material Adverse Effect.

          5.5 Name; Location of Chief Executive Office. Except as disclosed in the Schedule, Borrower
has not done business under any name other than that specified on the signature page hereof, and
its exact legal name is as set forth in the first paragraph of this Agreement. The chief executive
office of Borrower is located at the address indicated in Section 10 hereof.

          5.6 Litigation. Except as set forth in the Schedule, there are no actions or proceedings
pending by or against Borrower or any Subsidiary before any court or administrative agency in which
a likely adverse decision would reasonably be expected to have a Material Adverse Effect.

          5.7 No Material Adverse Change in Financial Statements. All consolidated and consolidating
financial statements related to Borrower and any Subsidiary that are delivered by Borrower to Bank
fairly present in all material respects Borrower’s consolidated and consolidating financial
condition as of the date thereof and Borrower’s consolidated and consolidating results of
operations for the period then ended. There has not been a material adverse change in the
consolidated or in the consolidating financial condition of Borrower since the date of the most
recent of such financial statements submitted to Bank.

          5.8 Solvency, Payment of Debts. Borrower is able to pay its debts (including trade debts) as
they mature; the fair saleable value of Borrower’s assets (including goodwill minus disposition
costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small
capital after the transactions contemplated by this Agreement.

8.

 

          5.9 Compliance with Laws and Regulations. Borrower and each Subsidiary have met the minimum
funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. No
event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely
to result in Borrower’s incurring any liability that could have a Material Adverse Effect.
Borrower is not an “investment company” or a company “controlled” by an “investment company” within
the meaning of the Investment Company Act of 1940. Borrower is not engaged principally, or as one
of its important activities, in the business of extending credit for the purpose of purchasing or
carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the
Federal Reserve System). Borrower has not violated any statutes, laws, ordinances or rules
applicable to it, the violation of which would reasonably be expected to have a Material Adverse
Effect. Borrower and each Subsidiary have filed or caused to be filed all tax returns required to
be filed, and have paid, or have made adequate provision for the payment of, all taxes reflected
therein except those being contested in good faith with adequate reserves under GAAP or where the
failure to file such returns or pay such taxes would not reasonably be expected to have a Material
Adverse Effect.

          5.10 Subsidiaries. Borrower does not own any stock, partnership interest or other equity
securities of any Person, except for Permitted Investments.

          5.11 Government Consents. Borrower and each Subsidiary have obtained all consents, approvals
and authorizations of, made all declarations or filings with, and given all notices to, all
governmental authorities that are necessary for the continued operation of Borrower’s business as
currently conducted, except where the failure to do so would not reasonably be expected to cause a
Material Adverse Effect.

          5.12 Inbound Licenses. Except as disclosed on the Schedule, Borrower is not a party to, nor
is bound by, any material license or other agreement important for the conduct of Borrower’s
business that prohibits or otherwise restricts Borrower from granting a security interest in
Borrower’s interest in such license or agreement or any other property important for the conduct of
Borrower’s business, other than this Agreement or the other Loan Documents.

          5.13 Screamin Media Group Acquisition Indebtedness. Excluding liabilities relating the to
“earn out” provision of the acquisition, Local.com Corporation has indefeasibly repaid in full all
existing Indebtedness owed by Local.com Corporation pursuant to its acquisition of Screamin Media
Group, Inc. and consequently Local.com Corporation has no more liabilities relating thereto.

          5.14 Full Disclosure. No representation, warranty or other statement made by Borrower in any
certificate or written statement furnished to Bank taken together with all such certificates and
written statements furnished to Bank contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained in such certificates or
statements not misleading in light of the circumstances in which they were made, it being
recognized by Bank that the projections and forecasts provided by Borrower in good faith and based
upon reasonable assumptions are not to be viewed as facts and that actual results during the period
or periods covered by any such projections and forecasts may differ from the projected or
forecasted results.

9.

 

     6. AFFIRMATIVE COVENANTS.

     Borrower covenants that, until payment in full of all outstanding Obligations, and for so long
as Bank may have any commitment to make a Credit Extension hereunder, Borrower shall do all of the
following:

          6.1 Good Standing and Government Compliance. Borrower shall maintain its and each of its
Subsidiaries’ corporate existence and good standing in the respective states of formation, shall
maintain qualification and good standing in each other jurisdiction in which the failure to so
qualify would reasonably be expected to have a Material Adverse Effect, and shall furnish to Bank
the organizational identification number issued to Borrower by the authorities of the state in
which Borrower is organized, if applicable. Borrower shall meet, and shall cause each Subsidiary
to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans
subject to ERISA. Borrower shall comply, and shall cause each Subsidiary to comply, with all
statutes, laws, ordinances and government rules and regulations to which it is subject, and shall
maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals
and agreements, the loss of which or failure to comply with which would reasonably be expected to
have a Material Adverse Effect.

          6.2 Financial Statements, Reports, Certificates. Borrower shall deliver to Bank: (i) as soon
as available, but in any event within 30 days after the end of each calendar month, a company
prepared consolidated and consolidating balance sheet and income statement covering Borrower’s
operations during such period, in a form reasonably acceptable to Bank and certified by a
Responsible Officer; (ii) as soon as available, but in any event within 150 days after the end of
Borrower’s fiscal year, audited consolidated and consolidating financial statements of Borrower
prepared in accordance with GAAP, consistently applied, together with an opinion which is either
unqualified, qualified only for going concern so long as Borrower’s investors provide additional
equity as needed or otherwise consented to in writing by Bank on such financial statements of an
independent certified public accounting firm reasonably acceptable to Bank; (iii) annual budget
approved by Borrower’s Board of Directors as soon as available but not later than 60 days after the
beginning of the applicable fiscal year; (iv) if applicable, copies of all statements, reports and
notices sent or made available generally by Borrower to its security holders or to any holders of
Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange
Commission; (v) promptly upon receipt of notice thereof, a report of any legal actions pending or
threatened against Borrower or any Subsidiary that could reasonably be expected to result in
damages or costs to Borrower or any Subsidiary of $250,000 or more, as well as ongoing updates
about the same which shall be delivered to Bank at least quarterly but sooner if there is a
material event in the legal action; (vi) promptly upon receipt, each management letter prepared by
Borrower’s independent certified public accounting firm regarding Borrower’s management control
systems, and (vii) such budgets, sales projections, operating plans or other financial information
generally prepared by Borrower in the ordinary course of business as Bank may reasonably request
from time to time.

               (a) Within 10 days after both the 1st day and the 15th day of each
month, Borrower shall deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer
in substantially the form of Exhibit D hereto, together with aged listings by invoice date of
accounts receivable and accounts payable and an updated schedule of deferred revenue.

10.

 

               (b) Within 30 days after the last day of each month, Borrower shall deliver to Bank with the
monthly financial statements a Compliance Certificate certified as of the last day of the
applicable month and signed by a Responsible Officer in substantially the form of Exhibit E hereto.

               (c) As soon as possible and in any event within 5 calendar days after becoming aware of the
occurrence or existence of an Event of Default hereunder, a written statement of a Responsible
Officer setting forth details of the Event of Default, and the action which Borrower has taken or
proposes to take with respect thereto.

               (d) Not including the initial audit required by Section 3.2(d) hereof, Bank (through any of
its officers, employees, or agents) shall have the right, upon reasonable prior notice (but in no
instance less than 5 days prior written notice), from time to time during Borrower’s usual business
hours but no more than once in any 6 month period (unless an Event of Default has occurred and is
continuing), to inspect Borrower’s Books and to make copies thereof and to check, test, inspect,
audit and appraise the Collateral at Borrower’s expense in order to verify Borrower’s financial
condition or the amount, condition of, or any other matter relating to, the Collateral.

     Borrower may deliver to Bank on an electronic basis any certificates, reports or information
required pursuant to this Section 6.2, and Bank shall be entitled to rely on the information
contained in the electronic files, provided that Bank in good faith believes that the files were
delivered by a Responsible Officer. Borrower shall include a submission date on any certificates
and reports to be delivered electronically.

          6.3 Inventory and Equipment; Returns. Borrower shall keep all Inventory and Equipment in good
and merchantable condition, free from all material defects except for Inventory and Equipment (i)
sold in the ordinary course of business, and (ii) for which adequate reserves have been made, in
all cases in the United States and such other locations as to which Borrower gives prior written
notice. Returns and allowances, if any, as between Borrower and its account debtors shall be on
the same basis and in accordance with the usual customary practices of Borrower, as they exist on
the Closing Date. Borrower shall promptly notify Bank of all returns and recoveries and of all
disputes and claims involving inventory having a book value of more than $100,000.

          6.4 Taxes. Borrower shall make, and cause each Subsidiary to make, due and timely payment or
deposit of all material federal, state, and local taxes, assessments, or contributions required of
it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A.
and state disability, and will execute and deliver to Bank, on demand, proof satisfactory to Bank
indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate
certificates attesting to the payment or deposit thereof; provided that Borrower or a Subsidiary
need not make any payment if the amount or validity of such payment is contested in good faith by
appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower or
such Subsidiary.

          6.5 Insurance. Borrower, at its expense, shall (i) keep the Collateral insured against loss
or damage, and (ii) maintain liability and other insurance, in each case in as

11.

 

ordinarily insured against by other owners in businesses similar to Borrower’s. All such
policies of insurance shall be in such form, with such companies, and in such amounts as reasonably
satisfactory to Bank. No later than 15 days after the Closing Date, all policies of property
insurance shall contain a lender’s loss payable endorsement, in a form satisfactory to Bank,
showing Bank as an additional loss payee, and all liability insurance policies shall show Bank as
an additional insured and specify that the insurer must give at least 20 days notice to Bank before
canceling its policy for any reason. Within 30 days of the Closing Date, Borrower shall cause to
be furnished to Bank a copy of its policies or certificate of insurance including any endorsements
covering Bank or showing Bank as an additional insured. Upon Bank’s request, Borrower shall
deliver to Bank certified copies of the policies of insurance and evidence of all premium payments.
Proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to
replace the property subject to the claim, provided that any such replacement property shall be
deemed Collateral in which Bank has been granted a first priority security interest, provided that
if an Event of Default has occurred and is continuing, all proceeds payable under any such policy
shall, at Bank’s option, be payable to Bank to be applied on account of the Obligations.

          6.6 “Primary Depository”. Subject to the provisions of Section 3.1(i) and 3.2(b), Borrower
within 30 days of the Closing Date shall maintain all its depository and operating accounts with
Bank and its primary investment accounts with Bank or Bank’s affiliates.

          6.7 Financial Covenants. Borrower shall at all times maintain the following financial ratios
and covenants:

               (a) EBITDA. For the corresponding months set forth in the table immediately below, calculated
on a cumulative year-to-date basis, an Adjusted EBITDA of not less than the amounts shown. Minimum
amounts for 2012 shall be set (or reset as appropriate) by Bank in an amendment of this Agreement,
which Borrower hereby agrees to execute, following Bank’s receipt from Borrower of Borrower’s 2012
financial and operating plan, which shall be approved by Borrower’s board of directors and
delivered to Bank no later than December 15, 2011.

	 	 	 	 	 
	A	 	B	 
	Applicable Month	 	Minimum Adjusted EBITDA	 
	June 2011
	 	 	($2,919,856	)
	July 2011
	 	 	($4,928,363	)
	August 2011
	 	 	($6,543,469	)
	September 2011
	 	 	($8,265,671	)

12.

 

	 	 	 	 	 
	A	 	B	 
	Applicable Month	 	Minimum Adjusted EBITDA	 
	October 2011
	 	 	($9,458,617	)
	November 2011
	 	 	($10,812,279	)
	December 2011
	 	 	($12,026,790	)

               (b) Liquidity Ratio. A Liquidity Ratio of at least 1.25 to 1.00.

          6.8 “Earn Out” Subordination Agreement. Delivered no later than 60 days after the Closing
Date, a subordination agreement in form and substance acceptable to Bank and fully executed by
former shareholders of Screamin Media Group, Inc. in which at least 70.0% of the potential “earn
out” liabilities of Local.com Corporation related to its acquisition of Screamin Media Group, Inc.
are subordinated to Bank.

          6.9 Further Assurances. At any time and from time to time Borrower shall execute and deliver
such further instruments and take such further action as may reasonably be requested by Bank to
effect the purposes of this Agreement.

     7. NEGATIVE COVENANTS.

     Borrower covenants and agrees that, so long as any credit hereunder shall be available and
until the outstanding Obligations are paid in full or for so long as Bank may have any commitment
to make any Credit Extensions, Borrower will not do any of the following without Bank’s prior
written consent, which shall not be unreasonably withheld:

          7.1 Dispositions. Convey, sell, lease, license, transfer or otherwise dispose of
(collectively, to “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of
its business or property, or move cash balances on deposit with Bank to accounts opened at another
financial institution, other than Permitted Transfers.

          7.2 Change in Name, Location, Executive Office, or Executive Management; Change in Business;
Change in Fiscal Year; Change in Control. Change its name or the state of Borrower’s formation or
relocate its chief executive office without 30 days prior written notification to Bank; replace or
suffer the departure of its chief executive officer or chief financial officer without delivering
written notification to Bank within 10 days; fail to appoint an interim replacement or fill a
vacancy in the position of chief executive officer or chief financial officer for more than 30
consecutive days; take action to liquidate, wind up, or otherwise cease to conduct business in the
ordinary course; engage in any business, or permit any of its Subsidiaries to engage in any
business, other than or reasonably related or incidental to the businesses currently engaged in by
Borrower; change its fiscal year end; have a Change in Control.

          7.3 Mergers or Acquisitions.

13.

 

               (a) Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or
into any other business organization (other than mergers or consolidations of a Subsidiary into
another Subsidiary or into Borrower); provided however, Borrower may complete a merger or
consolidation if the Obligations are repaid in full concurrently with the closing of any such
merger or consolidation. Borrower may request that Bank give its consent to a merger, such consent
to be given or withheld in Bank’s sole discretion no later than ten (10) Business Days after Bank
receives written notice from Borrower of the acquisition.

               (b) Acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock or property of another Person where the Obligations are not repaid in full
concurrently with the closing of such transaction except where either:

                    (i) Each of the following conditions is applicable: (1) at least ten (10) Business Days
prior to the consummation thereof, Borrower delivers written notice to Bank of the acquisition
along with pro forma financial projections reflecting the Borrower’s anticipated performance after
the acquisition, (2) no Event of Default has occurred, is continuing or would exist after giving
effect to such transactions, (3) such transactions do not result in a Change in Control, (4)
Borrower is the surviving entity, and (5) after giving effect to the anticipated acquisition, the
aggregate balance of Cash held by Borrower in accounts at Bank equals or exceeds Four Million
Dollars ($4,000,000). If after giving effect to the anticipated acquisition, the aggregate balance
of Cash held by Borrower in accounts at Bank is less than Four Million Dollars ($4,000,000),
Borrower may request that Bank give its consent to such acquisition, such consent to be given or
withheld in Bank’s sole discretion no later than ten (10) Business Days after Bank receives
written notice from Borrower of the acquisition; or

                    (ii) Each of the following conditions is applicable: (1) at least ten (10) Business Days
prior to the consummation thereof, Borrower delivers written notice to Bank of the acquisition
along with pro forma financial projections reflecting the Borrower’s anticipated performance after
the acquisition, with such projections demonstrating compliance with the terms of this Agreement;
(2) the consideration paid in connection with such transactions (including assumption of
liabilities) does not in the aggregate exceed $250,000 in Cash (or $500,000 if consideration
consists solely of Borrower’s capital stock) during any fiscal year, (3) no Event of Default has
occurred, is continuing or would exist after giving effect to such transactions, (4) such
transactions do not result in a Change in Control, and (5) Borrower is the surviving entity. If
the consideration paid in connection with such transactions (including assumption of liabilities)
exceeds an aggregate amount of $250,000 in Cash (or $500,000 if consideration consists solely of
Borrower’s capital stock) during any fiscal year, Borrower may request that Bank give its consent
to such acquisition, such consent to be given or withheld in Bank’s sole discretion no later than
ten (10) Business Days after Bank receives written notice from Borrower of the acquisition.

               (c) Borrower shall not, without Bank’s prior written consent, enter into any binding
contractual arrangement with any Person to attempt to facilitate a merger or acquisition of
Borrower; provided however, Borrower may enter into any such agreement without Bank’s prior written
consent so long as (i) no Event of Default exists when such agreement is entered into by Borrower,
(ii) such agreement does not give such Person the right to claim any fee,

14.

 

payment or damages from any parties, other than from Borrower or Borrower’s investors, in
connection with a sale of Borrower’s stock or assets pursuant to or resulting from an assignment
for the benefit of creditors, an asset turnover to Borrower’s creditors (including, without
limitation, Bank), foreclosure, bankruptcy or similar liquidation, and (iii) Borrower notifies Bank
in advance of entering into such an agreement (provided, the failure to give such notification
shall not be deemed a material breach of this Agreement).

          7.4 Indebtedness. Create, incur, assume, guarantee or be or remain liable with respect to any
Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any
Indebtedness or take any actions which impose on Borrower an obligation to prepay any Indebtedness,
except Indebtedness to Bank.

          7.5 Encumbrances. Create, incur, assume or allow any Lien with respect to its property, or
assign or otherwise convey any right to receive income, including the sale of any Accounts, or
permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant to any other
Person (other than (i) the licensors of in-licensed property with respect to such property or (ii)
the lessors of specific equipment or lenders financing specific equipment with respect to such
leased or financed equipment) that Borrower in the future will refrain from creating, incurring,
assuming or allowing any Lien with respect to any of Borrower’s property.

          7.6 Distributions. Pay any dividends or make any other distribution or payment on account of
or in redemption, retirement or purchase of any capital stock, except that Borrower may (i)
repurchase up to $1,700,000 of its common stock during the term of this Agreement in accordance
with the Borrower’s previously announced stock repurchase plan, including such limitations with
respect to same as have been established or may be later established by the Borrower’s Board of
Directors from time to time, provided that an Event of Default does not exist prior to such
repurchase or would not exist after giving effect to such repurchase and Borrower’s representations
on the Schedule in relation to such repurchases remain true and complete in their entirety at all
times, (ii) repurchase the stock of former employees pursuant to stock repurchase agreements by the
cancellation of indebtedness owed by such former employees to Borrower regardless of whether an
Event of Default exists, (iii) as they become due and payable, pay amounts owed to former
shareholders of Screamin Media Group, Inc. in satisfaction of the “earn out” liabilities of
Local.com Corporation related to its acquisition of Screamin Media Group, Inc., provided that an
Event of Default does not exist prior to any such payment or would not exist after giving effect to
such payment.

          7.7 Investments. Directly or indirectly acquire or own, or make any Investment in or to any
Person, or permit any of its Subsidiaries so to do, other than Permitted Investments, or maintain
or invest any of its Investment Property with a Person other than Bank or Bank’s Affiliates or
permit any Subsidiary to do so unless such Person has entered into a control agreement with Bank,
in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or
be bound by, an agreement that restricts such Subsidiary from paying dividends or otherwise
distributing property to Borrower.

          7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any
material transaction with any Affiliate of Borrower except for transactions that are in the
ordinary course of Borrower’s business, upon fair and reasonable terms that are no less

15.

 

favorable to Borrower than would be obtained in an arm’s length transaction with a
non-affiliated Person.

          7.9 Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any of
its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated
Debt, or amend any provision affecting Bank’s rights contained in any documentation relating to the
Subordinated Debt without Bank’s prior written consent.

          7.10 Inventory and Equipment. Store the Inventory or the Equipment of a book value in excess
of $100,000 with a bailee, warehouseman, collocation facility or similar third party unless the
third party has been notified of Bank’s security interest and Bank (a) has received an
acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for
Bank’s benefit or (b) is in possession of the warehouse receipt, where negotiable, covering such
Inventory or Equipment. Except for Inventory sold in the ordinary course of business and for
movable items of personal property having an aggregate book value not in excess of $100,000, and
except for such other locations as Bank may approve in writing, Borrower shall keep the Inventory
and Equipment only at the location set forth in Section 10 and such other locations of which
Borrower gives Bank prior written notice and as to which Bank is able to take such actions as may
be necessary to perfect its security interest or to obtain a bailee’s acknowledgment of Bank’s
rights in the Collateral.

          7.11 No Investment Company; Margin Regulation. Become or be controlled by an “investment
company,” within the meaning of the Investment Company Act of 1940, or become principally engaged
in, or undertake as one of its important activities, the business of extending credit for the
purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for
such purpose.

     8. EVENTS OF DEFAULT.

     Any one or more of the following events shall constitute an Event of Default by Borrower under
this Agreement:

          8.1 Payment Default. If Borrower fails to pay any of the Obligations when due;

          8.2 Covenant Default.

               (a) If Borrower fails to perform any obligation under Sections 6.2 (financial reporting), 6.4
(taxes), 6.5 (insurance), 6.6 (primary accounts), 6.7 (financial covenants), or 6.8 (“earn out”
subordination agreement) or violates any of the covenants contained in Article 7 of this Agreement;
or

               (b) If Borrower fails or neglects to perform or observe any other material term, provision,
condition, covenant contained in this Agreement, in any of the Loan Documents, or in any other
present or future agreement between Borrower and Bank and as to any default under such other term,
provision, condition or covenant that can be cured, has failed to cure such default within 10 days
after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided,
however, that if the default cannot by its nature be

16.

 

cured within the 15 day period or cannot after diligent attempts by Borrower be cured within
such 15 day period, and such default is likely to be cured within a reasonable time, then Borrower
shall have an additional reasonable period (which shall not in any case exceed 30 days) to attempt
to cure such default, and within such reasonable time period the failure to have cured such default
shall not be deemed an Event of Default but no Credit Extensions will be made.

          8.3 Material Adverse Change. If there occurs any circumstance or any circumstances which
would reasonably be expected to have a Material Adverse Effect;

          8.4 Attachment. If any material portion of Borrower’s assets is attached, seized, subjected
to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee,
receiver or person acting in a similar capacity and such attachment, seizure, writ or distress
warrant or levy has not been removed, discharged or rescinded within 30 days, or if Borrower is
enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any
material part of its business affairs, or if a judgment or other claim becomes a lien or
encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy, or
assessment is filed of record with respect to any material portion of Borrower’s assets by the
United States Government, or any department, agency, or instrumentality thereof, or by any state,
county, municipal, or governmental agency, and the same is not paid within ten days after Borrower
receives notice thereof, provided that none of the foregoing shall constitute an Event of Default
where such action or event is stayed or an adequate bond has been posted pending a good faith
contest by Borrower (provided that no Credit Extensions will be made during such cure period);

          8.5 Insolvency. If Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by
Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or
stayed within 45 days (provided that no Credit Extensions will be made prior to the dismissal of
such Insolvency Proceeding);

          8.6 Other Agreements. If there is a default or other failure to perform in any agreement to
which Borrower is a party with a third party or parties resulting in a right by such third party or
parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in
excess of $250,000 or that would reasonably be expected to have a Material Adverse Effect;

          8.7 Judgments. If a final, un-appealable, uninsured judgment or judgments for the payment of
money in an amount, individually or in the aggregate, of at least $250,000 shall be rendered
against Borrower and shall remain unsatisfied and unstayed for a period of 15 days (provided that
no Credit Extensions will be made prior to the satisfaction or stay of the judgment); or

          8.8 Misrepresentations. If any material misrepresentation or material misstatement exists now
or hereafter in any warranty or representation set forth herein or in any certificate delivered to
Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this
Agreement or any other Loan Document.

17.

 

          8.9 Cross-Default of Major Contracts. If there is a default or other failure to perform
by Borrower in relation to any Major Contract; or if the other party to any Major Contract cancels,
terminates or otherwise ceases to perform its obligations under any Major Contract, or any portion
thereof, provided however, that in such situation Borrower shall have 10 days to cure such default
by entering into a comparable Major Contract, which shall be determined by Bank in its sole
discretion; or if the other party to any Major Contract files a lawsuit or other legal action
against Borrower for breach of a Major Contract or for any other reason. Borrower agrees to notify
Bank immediately after becoming aware of the occurrence or existence of an Event of Default under
this Section 8.9, and as soon as commercially practicable to deliver to Bank a written statement of
a Responsible Officer setting forth details of such an Event of Default, and the action which
Borrower has taken or proposes to take with respect thereto.

     9. BANK’S RIGHTS AND REMEDIES.

          9.1 Rights and Remedies. Upon the occurrence and during the continuance of an Event of
Default, Bank may, at its election, without notice of its election and without demand, do any one
or more of the following, all of which are authorized by Borrower:

               (a) Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan
Documents, or otherwise, immediately due and payable (provided that upon the occurrence of an Event
of Default described in Section 8.5 (insolvency), all Obligations shall become immediately due and
payable without any action by Bank);

               (b) Demand that Borrower (i) deposit cash with Bank in an amount equal to the amount of any
Letters of Credit remaining undrawn, as collateral security for the repayment of any future
drawings under such Letters of Credit, and (ii) pay in advance all Letter of Credit fees scheduled
to be paid or payable over the remaining term of the Letters of Credit, and Borrower shall promptly
deposit and pay such amounts;

               (c) Cease advancing money or extending credit to or for the benefit of Borrower under this
Agreement or under any other agreement between Borrower and Bank;

               (d) Settle or adjust disputes and claims directly with account debtors for amounts, upon terms
and in whatever order that Bank reasonably considers advisable;

               (e) Make such payments and do such acts as Bank considers necessary or reasonable to protect
its security interest in the Collateral. Borrower agrees to assemble the Collateral if Bank so
requires, and to make the Collateral available to Bank as Bank may designate. Borrower authorizes
Bank to enter the premises where the Collateral is located, to take and maintain possession of the
Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance,
charge, or lien which in Bank’s determination appears to be prior or superior to its security
interest and to pay all expenses incurred in connection therewith. With respect to any of
Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such
premises and to occupy the same, without charge, in order to exercise any of Bank’s rights or
remedies provided herein, at law, in equity, or otherwise;

18.

 

               (f) Set off and apply to the Obligations any and all (i) balances and deposits of Borrower
held by Bank, and (ii) indebtedness at any time owing to or for the credit or the account of
Borrower held by Bank;

               (g) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for
sale, and sell (in the manner provided for herein) the Collateral. Bank is hereby granted a
license or other right, solely pursuant to the provisions of this Section 9.1, to use, without
charge, Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade
names, trademarks, service marks, and advertising matter, or any property of a similar nature, as
it pertains to the Collateral, in completing production of, advertising for sale, and selling any
Collateral and, in connection with Bank’s exercise of its rights under this Section 9.1, Borrower’s
rights under all licenses and all franchise agreements shall inure to Bank’s benefit;

               (h) Beginning on the day 15 days following the date Bank gives notice to Borrower of Bank’s
intent to do so, sell the Collateral at either a public or private sale, or both, by way of one or
more contracts or transactions, for cash or on terms, in such manner and at such places (including
Borrower’s premises) as Bank determines is commercially reasonable, and apply any proceeds to the
Obligations in whatever manner or order Bank deems appropriate; provided however, that the 15-day
notice requirement mentioned herein shall not in any way impair any other right of Bank set forth
in this Agreement, including but not limited to Bank’s rights to take control of any Collateral or
set off as described in Subsection 9.1(f) hereof. Bank may sell the Collateral without giving any
warranties as to the Collateral. Bank may specifically disclaim any warranties of title or the
like. This procedure will not be considered adversely to affect the commercial reasonableness of
any sale of the Collateral. If Bank sells any of the Collateral upon credit, Borrower will be
credited only with payments actually made by the purchaser, received by Bank, and applied to the
indebtedness of the purchaser. If the purchaser fails to pay for the Collateral, Bank may resell
the Collateral and Borrower shall be credited with the proceeds of the sale;

               (i) Bank may credit bid and purchase at any public sale;

               (j) Apply for the appointment of a receiver, trustee, liquidator or conservator of the
Collateral, without notice and without regard to the adequacy of the security for the Obligations
and without regard to the solvency of Borrower, any guarantor or any other Person liable for any of
the Obligations; and

               (k) Any deficiency that exists after disposition of the Collateral as provided above will be
paid immediately by Borrower.

               Bank may comply with any applicable state or federal law requirements in connection with a
disposition of the Collateral and compliance will not be considered adversely to affect the
commercial reasonableness of any sale of the Collateral.

          9.2 Power of Attorney. Effective only upon the occurrence and during the continuance of an
Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers,
or employees) as Borrower’s true and lawful attorney to: (a) send

19.

 

requests for verification of Accounts or notify account debtors of Bank’s security interest in
the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that
may come into Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading relating
to any Account, drafts against account debtors, schedules and assignments of Accounts,
verifications of Accounts, and notices to account debtors; (d) dispose of any Collateral; (e) make,
settle, and adjust all claims under and decisions with respect to Borrower’s policies of insurance;
(f) settle and adjust disputes and claims respecting the accounts directly with account debtors,
for amounts and upon terms which Bank determines to be reasonable; and (g) file, in its sole
discretion, one or more financing or continuation statements and amendments thereto, relative to
any of the Collateral; provided Bank may exercise such power of attorney to sign the name of
Borrower on any of the documents described in clause (g) above, regardless of whether an Event of
Default has occurred. The appointment of Bank as Borrower’s attorney in fact, and each and every
one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the
Obligations have been fully repaid and performed and Bank’s obligation to provide advances
hereunder is terminated.

          9.3 Accounts Collection. At any time after the occurrence and during the continuation of an
Event of Default, Bank may notify any Person owing funds to Borrower of Bank’s security interest in
such funds and verify the amount of such Account. Borrower shall collect all amounts owing to
Borrower for Bank, receive in trust all payments as Bank’s trustee, and immediately deliver such
payments to Bank in their original form as received from the account debtor, with proper
endorsements for deposit.

          9.4 Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof of
payment due to third persons or entities, as required under the terms of this Agreement, then Bank
may do any or all of the following after reasonable notice to Borrower: (a) make payment of the
same or any part thereof; and/or (b) set up such reserves under the Formula and Non-Formula
Revolving Line as Bank deems necessary to protect Bank from the exposure created by such failure;
or (c) obtain and maintain insurance policies of the type discussed in Section 6.5 of this
Agreement, and take any action with respect to such policies as Bank deems prudent. Any amounts so
paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and
shall bear interest at the then applicable rate hereinabove provided, and shall be secured by the
Collateral. Any payments made by Bank shall not constitute an agreement by Bank to make similar
payments in the future or a waiver by Bank of any Event of Default under this Agreement.

          9.5 Bank’s Liability for Collateral. Bank has no obligation to clean up or otherwise prepare
the Collateral for sale. All risk of loss, damage or destruction of the Collateral shall be borne
by Borrower.

          9.6 No Obligation to Pursue Others. Bank has no obligation to attempt to satisfy the
Obligations by collecting them from any other person liable for them and Bank may release, modify
or waive any collateral provided by any other Person to secure any of the Obligations, all without
affecting Bank’s rights against Borrower. Borrower waives any right it may have to require Bank to
pursue any other Person for any of the Obligations.

20.

 

          9.7 Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents,
and all other agreements shall be cumulative. Bank shall have all other rights and remedies not
inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Bank of one
right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on
Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver,
election, or acquiescence by it. No waiver by Bank shall be effective unless made in a written
document signed on behalf of Bank and then shall be effective only in the specific instance and for
the specific purpose for which it was given. Borrower expressly agrees that this Section 9.7 may
not be waived or modified by Bank by course of performance, conduct, estoppel or otherwise.

          9.8 Demand; Protest. Except as otherwise provided in this Agreement, Borrower waives demand,
protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment and any
other notices relating to the Obligations.

     10. NOTICES.

     Unless otherwise provided in this Agreement, all notices or demands by any party relating to
this Agreement or any other agreement entered into in connection herewith shall be in writing and
(except for financial statements and other informational documents which may be sent by first-class
mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery
service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower
or to Bank, as the case may be, at its addresses set forth below:

	 	 	 

	If to Borrower:

	 	Local.com Corporation
	 

	 	7555 Irvine Center Drive
	 

	 	Irvine, CA 92618
	 
	 	 
	 

	 	Attn: Ken Cragun, CFO
	 

	 	FAX: (949) 784-0880
	 
	 	 
	If to Co-Borrower:

	 	Krillion, Inc.
	 

	 	7555 Irvine Center Drive
	 

	 	Irvine, CA 92618
	 
	 	 
	 

	 	Attn: _Ken Cragun, CFO
	 

	 	FAX: (949) 784-0880
	 
	 	 
	 

	 	And
	 
	 	 
	 

	 	Screamin Media Group, Inc., Inc.
	 

	 	7555 Irvine Center Drive
	 

	 	Irvine, CA 92618
	 
	 	 
	 

	 	Attn: _Ken Cragun, CFO
	 

	 	FAX: (949) 784-0880

21.

 

	 	 	 

	With a copy to:

	 	Scott Reinke, General Counsel
	 

	 	7555 Irvine Center Drive
	 

	 	Irvine, CA 92618
	 
	 	 
	If to Bank:

	 	Square 1 Bank
	 

	 	406 Blackwell Street, Suite 240
	 

	 	Durham, North Carolina 27701
	 

	 	Attn: Loan Operations Manager
	 

	 	FAX: (919) 314-3080
	 
	 	 
	with a copy to:

	 	Square 1 Bank
	 

	 	225 Arizona Avenue, Suite 200
	 

	 	Santa Monica, CA 90401
	 
	 	 
	 

	 	Attn: Chris Erro
	 

	 	FAX: (310) 361-7686

     The parties hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other.

     11. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

This Agreement shall be governed by, and construed in accordance with, the internal laws of the
State of California, without regard to principles of conflicts of law. Jurisdiction shall lie in
the State of California. All disputes, controversies, claims, actions and similar proceedings
arising with respect to Borrower’s account or any related agreement or transaction shall be brought
in the Superior Court of San Mateo County, California or the United States District Court for the
Northern District of California, except as provided below with respect to arbitration of such
matters. BANK AND BORROWER EACH ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL
ONE, BUT THAT IT MAY BE WAIVED. EACH OF THEM, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO
CONSULT, WITH COUNSEL OF THEIR CHOICE, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY RELATED INSTRUMENT OR LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTION
OF ANY OF THEM. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR
RELINQUISHED BY BANK OR BORROWER, EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM. If the
jury waiver set forth in this Section 11 is not enforceable, then any dispute, controversy, claim,
action or similar proceeding arising out of or relating to this Agreement, the Loan Documents or
any of the transactions contemplated therein shall be settled by final and binding arbitration held
in San Mateo County, California in accordance with the then current Commercial Arbitration Rules of
the American Arbitration Association by one arbitrator appointed in accordance with those rules.

22.

 

The arbitrator shall apply California law to the resolution of any dispute, without reference to
rules of conflicts of law or rules of statutory arbitration. Judgment upon any award resulting from
arbitration may be entered into and enforced by any state or federal court having jurisdiction
thereof. Notwithstanding the foregoing, the parties may apply to any court of competent
jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance
with this Section. The costs and expenses of the arbitration, including without limitation, the
arbitrator’s fees and expert witness fees, and reasonable attorneys’ fees, incurred by the parties
to the arbitration may be awarded to the prevailing party, in the discretion of the arbitrator, or
may be apportioned between the parties in any manner deemed appropriate by the arbitrator. Unless
and until the arbitrator decides that one party is to pay for all (or a share) of such costs and
expenses, both parties shall share equally in the payment of the arbitrator’s fees as and when
billed by the arbitrator.

     12. GENERAL PROVISIONS.

          12.1 Successors and Assigns. This Agreement shall bind and inure to the benefit of the
respective successors and permitted assigns of each of the parties and shall bind all persons who
become bound as a debtor to this Agreement; provided, however, that neither this Agreement nor any
rights hereunder may be assigned by Borrower without Bank’s prior written consent, which consent
may be granted or withheld in Bank’s sole discretion. Bank shall have the right without the
consent of or notice to Borrower to sell, assign, transfer, negotiate, or grant participation in
all or any part of, or any interest in, Bank’s obligations, rights and benefits hereunder.

          12.2 Indemnification. Borrower shall defend, indemnify and hold harmless Bank and its
officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities
claimed or asserted by any other party in connection with the transactions contemplated by this
Agreement; and (b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank, its
officers, employees and agents as a result of or in any way arising out of, following, or
consequential to transactions between Bank and Borrower whether under this Agreement, or otherwise
(including without limitation reasonable attorneys fees and expenses), except for losses caused by
Bank’s gross negligence or willful misconduct.

          12.3 Time of Essence. Time is of the essence for the performance of all obligations set forth
in this Agreement.

          12.4 Severability of Provisions. Each provision of this Agreement shall be severable from
every other provision of this Agreement for the purpose of determining the legal enforceability of
any specific provision.

          12.5 Amendments in Writing, Integration. All amendments to or terminations of this Agreement
or the other Loan Documents must be in writing. All prior agreements, understandings,
representations, warranties, and negotiations between the parties hereto with respect to the
subject matter of this Agreement and the other Loan Documents, if any, are merged into this
Agreement and the Loan Documents.

23.

 

          12.6 Counterparts. This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and delivered, shall be
deemed to be an original, and all of which, when taken together, shall constitute but one and the
same Agreement. Executed copies of the signature pages of this Agreement sent by facsimile or
transmitted electronically in Portable Document Format (“PDF”), or any similar format, shall be
treated as originals, fully binding and with full legal force and effect, and the parties waive any
rights they may have to object to such treatment.

          12.7 Survival. All covenants, representations and warranties made in this Agreement shall
continue in full force and effect so long as any Obligations remain outstanding or Bank has any
obligation to make any Credit Extension to Borrower. The obligations of Borrower to indemnify Bank
with respect to the expenses, damages, losses, costs and liabilities described in Section 12.2
shall survive until all applicable statute of limitations periods with respect to actions that may
be brought against Bank have run.

          12.8 Confidentiality. In handling any confidential information, Bank and all employees and
agents of Bank shall exercise the same degree of care that Bank exercises with respect to its own
proprietary information of the same types to maintain the confidentiality of any non-public
information thereby received or received pursuant to this Agreement except that disclosure of such
information may be made (i) to the subsidiaries or Affiliates of Bank or Borrower in connection
with their present or prospective business relations with Borrower, (ii) to prospective transferees
or purchasers of any interest in the Credit Extensions, provided that they have entered into a
comparable confidentiality agreement in favor of Borrower and have delivered a copy to Borrower,
(iii) as required by law, regulations, rule or order, subpoena, judicial order or similar order,
(iv) as may be required in connection with the examination, audit or similar investigation of Bank
and (v) as Bank may determine in connection with the enforcement of any remedies hereunder.
Confidential information hereunder shall not include information that either: (a) is in the public
domain or in the knowledge or possession of Bank when disclosed to Bank, or becomes part of the
public domain after disclosure to Bank through no fault of Bank; or (b) is disclosed to Bank by a
third party, provided Bank does not have actual knowledge that such third party is prohibited from
disclosing such information.

     13. CO-BORROWER PROVISIONS.

          13.1 Primary Obligation. This Agreement is a primary and original obligation of each Borrower
and shall remain in effect notwithstanding future changes in conditions, including any change of
law or any invalidity or irregularity in the creation or acquisition of any Obligations or in the
execution or delivery of any agreement between Bank and any Borrower. Each Borrower shall be
liable for existing and future Obligations as fully as if all of all Credit Extensions were
advanced to such Borrower. Bank may rely on any certificate or representation made by any Borrower
as made on behalf of, and binding on, all Borrowers, including without limitation Disbursement
Request Forms, Borrowing Base Certificates and Compliance Certificates.

          13.2 Enforcement of Rights. Borrowers are jointly and severally liable for the Obligations
and Bank may proceed against one or more of the Borrowers to enforce the Obligations without
waiving its right to proceed against any of the other Borrowers.

24.

 

          13.3 Borrowers as Agents. Each Borrower appoints the other Borrower as its agent with all
necessary power and authority to give and receive notices, certificates or demands for and on
behalf of both Borrowers, to act as disbursing agent for receipt of any Credit Extensions on behalf
of each Borrower and to apply to Bank on behalf of each Borrower for Credit Extensions, any waivers
and any consents. This authorization cannot be revoked, and Bank need not inquire as to each
Borrower’s authority to act for or on behalf of Borrower.

          13.4 Subrogation and Similar Rights. Notwithstanding any other provision of this Agreement or
any other Loan Document, each Borrower irrevocably waives all rights that it may have at law or in
equity (including, without limitation, any law subrogating the Borrower to the rights of Bank under
the Loan Documents) to seek contribution, indemnification, or any other form of reimbursement from
any other Borrower, or any other Person now or hereafter primarily or secondarily liable for any of
the Obligations, for any payment made by the Borrower with respect to the Obligations in connection
with the Loan Documents or otherwise and all rights that it might have to benefit from, or to
participate in, any security for the Obligations as a result of any payment made by the Borrower
with respect to the Obligations in connection with the Loan Documents or otherwise. Any agreement
providing for indemnification, reimbursement or any other arrangement prohibited under this Section
13.4 shall be null and void. If any payment is made to a Borrower in contravention of this Section
13.4, such Borrower shall hold such payment in trust for Bank and such payment shall be promptly
delivered to Bank for application to the Obligations, whether matured or unmatured.

          13.5 Waivers of Notice. Except as otherwise provided in this Agreement, Krillion, Inc. and
Screamin Media Group, Inc. each waive notice of acceptance hereof; notice of the existence,
creation or acquisition of any of the Obligations; notice of an Event of Default; notice of the
amount of the Obligations outstanding at any time; notice of intent to accelerate; notice of
acceleration; notice of any adverse change in the financial condition of any other Borrower or of
any other fact that might increase the Borrower’s risk; presentment for payment; demand; protest
and notice thereof as to any instrument; default; and all other notices and demands to which the
Borrower would otherwise be entitled. Each Borrower waives any defense arising from any defense of
any other Borrower, or by reason of the cessation from any cause whatsoever of the liability of any
other Borrower. Bank’s failure at any time to require strict performance by any Borrower of any
provision of the Loan Documents shall not waive, alter or diminish any right of Bank thereafter to
demand strict compliance and performance therewith. Nothing contained herein shall prevent Bank
from foreclosing on the Lien of any deed of trust, mortgage or other security instrument, or
exercising any rights available thereunder, and the exercise of any such rights shall not
constitute a legal or equitable discharge of any Borrower. Each Borrower also waives any defense
arising from any act or omission of Bank that changes the scope of the Borrower’s risks hereunder.

          13.6 Subrogation Defenses. Each Borrower hereby waives any defense based on impairment or
destruction of its subrogation or other rights against any other Borrower and waives all benefits
which might otherwise be available to it under California Civil Code Sections 2809, 2810, 2819,
2839, 2845, 2848, 2849, 2850, 2899, and 3433 and California Code of Civil Procedure Sections 580a,
580b, 580d and 726, as those statutory provisions are now in effect and hereafter amended, and
under any other similar statutes now and hereafter in effect.

25.

 

          13.7 Right to Settle, Release.

               (a) The liability of Borrowers hereunder shall not be diminished by (i) any agreement,
understanding or representation that any of the Obligations is or was to be guaranteed by another
Person or secured by other property, or (ii) any release or unenforceability, whether partial or
total, of rights, if any, which Bank may now or hereafter have against any other Person, including
another Borrower, or property with respect to any of the Obligations.

               (b) Without affecting the liability of any Borrower hereunder, Bank may (i) compromise,
settle, renew, extend the time for payment, change the manner or terms of payment, discharge the
performance of, decline to enforce, or release all or any of the Obligations with respect to a
Borrower, (ii) grant other indulgences to a Borrower in respect of the Obligations, (iii) modify in
any manner any documents relating to the Obligations with respect to a Borrower, (iv) release,
surrender or exchange any deposits or other property securing the Obligations, whether pledged by a
Borrower or any other Person, or (v) compromise, settle, renew, or extend the time for payment,
discharge the performance of, decline to enforce, or release all or any obligations of any
guarantor, endorser or other Person who is now or may hereafter be liable with respect to any of
the Obligations.

          13.8 Subordination. All indebtedness of a Borrower now or hereafter arising held by another
Borrower is subordinated to the Obligations and the Borrower holding the indebtedness shall take
all actions reasonably requested by Lender to effect, to enforce and to give notice of such
subordination.

********

26.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date
first above written.

	 	 	 	 	 
	 	LOCAL.COM CORPORATION

 	 
	 	By:  	/s/ Kenneth S. Cragun
 	 
	 	 	Title:  CFO  	 
	 	 	 	 
	 
	 	KRILLION, INC.

 	 
	 	By:  	/s/ Kenneth S. Cragun
 	 
	 	 	Title:  Secretary  	 
	 	 	 	 
	 
	 	SCREAMIN MEDIA GROUP, INC.

 	 
	 	By:  	/s/ Kenneth S. Cragun
 	 
	 	 	Title:  Secretary  	 
	 	 	 	 
	 
	 	SQUARE 1 BANK

 	 
	 	By:  	/s/ Pier Meager
 	 
	 	 	Title:  SVP  	 
	 	 	 	 

27.

 

	 	 	 	 	 

EXHIBIT A

DEFINITIONS

“Accounts” means all presently existing and hereafter arising accounts, contract rights, payment
intangibles and all other forms of obligations owing to Borrower arising out of the sale or lease
of goods (including, without limitation, the licensing of software and other technology) or the
rendering of services by Borrower and any and all credit insurance, guaranties, and other security
therefore, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books
relating to any of the foregoing.

     “Adjusted EBITDA” means with respect to any fiscal period an amount equal to earnings before
the sum of (a) tax, plus (b) depreciation and amortization, plus (c) interest, non-Cash expenses
and non-Cash warrant revaluation, plus (d) any increase (or minus any decrease) in deferred
revenues plus (e) any non-Cash stock compensation expenses, and, as appropriate, (f) minus any
increase or plus any decrease in capitalized software.

“Advance” or “Advances” means a cash advance or cash advances under the Formula Revolving Line or
the Non-Formula Revolving Lines.

“Affiliate” means, with respect to any Person, any Person that owns or controls directly or
indirectly such Person, any Person that controls or is controlled by or is under common control
with such Person, and each of such Person’s senior executive officers, directors, and general
partners.

“Ancillary Services” means any of the following products or services requested by Borrower and
approved by Bank under the Revolving Line, including, without limitation, Automated Clearing House
transactions, corporate credit card services, FX Contracts, Letters of Credit, or other treasury
management services.

“Ancillary Services Sublimit” means a sublimit for Ancillary Services under the Revolving Line not
to exceed $1,200,000.

“Bank Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees and
expenses) incurred in connection with the preparation, negotiation, administration, and enforcement
of the Loan Documents; reasonable Collateral audit fees; and Bank’s reasonable attorneys’ fees and
expenses (whether generated in-house or by outside counsel) incurred in amending, enforcing or
defending the Loan Documents (including fees and expenses of appeal), incurred before, during and
after an Insolvency Proceeding, whether or not suit is brought.

“Borrower’s Books” means all of Borrower’s books and records including: ledgers; records
concerning Borrower’s assets or liabilities, the Collateral, business operations or financial
condition; and all computer programs, or tape files, and the equipment, containing such
information.

“Borrowing Base” means an amount equal to 80.0% (the “Advance Rate”) of Eligible Accounts, as
determined by Bank with reference to the most recent Borrowing Base Certificate delivered by
Borrower.

“Business Day” means any day that is not a Saturday, Sunday, or other day on which banks in the
State of North Carolina are authorized or required to close.

“Cash” means unrestricted cash and cash equivalents.

“Change in Control” shall mean a transaction other than a bona fide equity financing or series of
financings on terms and from investors reasonably acceptable to Bank in which any “person” or
“group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934)
becomes the “beneficial owner” (as

1.

 

defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a
sufficient number of shares of all classes of stock then outstanding of Borrower ordinarily
entitled to vote in the election of directors, empowering such “person” or “group” to elect a
majority of the Board of Directors of Borrower, who did not have such power before such
transaction.

“Closing Date” means the date of this Agreement.

“Code” means the California Uniform Commercial Code as amended or supplemented from time to time.

“Collateral” means the property described on Exhibit B attached hereto and all Negotiable
Collateral to the extent not described on Exhibit B, except to the extent any such property (i) is
nonassignable by its terms without the consent of the licensor thereof or another party (but only
to the extent such prohibition on transfer is enforceable under applicable law, including, without
limitation, §9406 and §9408 of the Code), (ii) the granting of a security interest therein is
contrary to applicable law, provided that upon the cessation of any such restriction or
prohibition, such property shall automatically become part of the Collateral, (iii) constitutes the
capital stock of a controlled foreign corporation (as defined in the IRC), in excess of 65% of the
voting power of all classes of capital stock of such controlled foreign corporations entitled to
vote, or (iv) property (including any attachments, accessions or replacements) that is subject to a
Lien that is permitted pursuant to clause (c) of the definition of Permitted Liens, if the grant of
a security interest with respect to such property pursuant to this Agreement would be prohibited by
the agreement creating such Permitted Lien or would otherwise constitute a default thereunder,
provided, that such property will be deemed “Collateral” hereunder upon the termination and release
of such Permitted Lien.

“Collateral State” means the state or states where the Collateral is located, which is California
and Virginia.

“Contingent Obligation” means, as applied to any Person, any direct or indirect liability,
contingent or otherwise, of that Person with respect to (i) any indebtedness, lease, dividend,
letter of credit or other obligation of another, including, without limitation, any such obligation
directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that
Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any
obligations with respect to undrawn letters of credit, corporate credit cards or merchant services
issued for the account of that Person; and (iii) all obligations arising under any interest rate,
currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement,
or other agreement or arrangement designated to protect a Person against fluctuation in interest
rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent
Obligation” shall not include endorsements for collection or deposit in the ordinary course of
business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the
stated or determined amount of the primary obligation in respect of which such Contingent
Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability
in respect thereof as determined by such Person in good faith; provided, however, that such amount
shall not in any event exceed the maximum amount of the obligations under the guarantee or other
support arrangement.

“Copyrights” means any and all copyright rights, copyright applications, copyright
registrations and like protections in each work or authorship and derivative work thereof, whether
published or unpublished and whether or not the same also constitutes a trade secret, now or
hereafter existing, created, acquired or held.

“Credit Extension” means each Advance, Term Loan, or any other extension of credit, by Bank to or
for the benefit of Borrower hereunder.

“Eligible Accounts” means those Accounts that arise in the ordinary course of Borrower’s business
that comply with all of Borrower’s representations and warranties to Bank set forth in Section 5.3;
provided, that Bank may

2.

 

change the Advance Rate and the standards of eligibility by giving Borrower 10 days prior written
notice. Unless otherwise agreed to by Bank, Eligible Accounts shall not include the following:

               (a) Account balances that the account debtor has failed to pay in full within 90 days of
invoice date;

               (b) Account credit balances greater than 90 days from invoice date;

               (c) Accounts with respect to an account debtor, 25% of whose Accounts the account debtor has
failed to pay within 90 days of invoice date;

               (d) Accounts with respect to an account debtor, including the account debtor’s subsidiaries
and Affiliates, whose total obligations to Borrower exceed 25.0% (the “Concentration Limit”) of all
Accounts, to the extent such obligations exceed the aforementioned percentage, except: (1) as
approved in writing by Bank, or (2) Accounts with respect to Yahoo!, Microsoft/BING or Google as
the account debtor, for which the Concentration Limit shall instead be 55.0%;

               (e) Accounts with respect to which the account debtor does not have its principal place of
business in the United States, except for Eligible Foreign Accounts;

               (f) Accounts with respect to which the account debtor is the United States or any department,
agency, or instrumentality of the United States, except for Accounts of the United States if the
payee has assigned its payment rights to Bank and the assignment has been acknowledged under the
Assignment of Claims Act of 1940 (31 U.S.C. 3727);

               (g) Accounts with respect to which Borrower is liable to the account debtor for goods sold or
services rendered by the account debtor to Borrower, but only to the extent of any amounts owing to
the account debtor against amounts owed to Borrower;

               (h) Accounts with respect to which the account debtor is an officer, employee, agent,
Subsidiary or Affiliate of Borrower;

               (i) Accounts with respect to which goods are placed on consignment, guaranteed sale, sale or
return, sale on approval, bill and hold, demo or promotional, or other terms by reason of which the
payment by the account debtor may be conditional;

               (j) “Advanced Billings,” i.e., accounts that have not yet been billed to the account debtor or
that relate to deposits (such as good faith deposits) or other property of the account debtor held
by Borrower for the performance of services or delivery of goods which Borrower has not yet
performed or delivered;

               (k) Accounts with respect to which the account debtor disputes liability or makes any claim
with respect thereto as to which Bank believes, in its sole discretion, that there may be a basis
for dispute (but only to the extent of the amount subject to such dispute or claim), or is subject
to any Insolvency Proceeding, or becomes insolvent, or goes out of business;

               (l) Accounts the collection of which Bank reasonably determines after inquiry and consultation
with Borrower to be doubtful;

               (m) Retentions and hold-backs; and

3.

 

               (n) “Progress Billings,” i.e., accounts that are billed based on project milestones and not on
actual time and materials bases.

“Eligible Foreign Accounts” means Accounts with respect to which the account debtor does not have
its principal place of business in the United States and that are (i) supported by one or more
letters of credit in an amount and of a tenor, and issued by a financial institution, acceptable to
Bank, (ii) insured by the Export Import Bank of the United States, (iii) generated by an account
debtor with its principal place of business in Canada, provided that the Bank has perfected its
security interest in the appropriate Canadian province, or (iv) approved by Bank on a case-by-case
basis. All Eligible Foreign Accounts must be calculated in U.S. Dollars.

“Equipment” means all present and future machinery, equipment, tenant improvements, furniture,
fixtures, vehicles, tools, parts and attachments in which Borrower has any interest.

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

“Event of Default” has the meaning assigned in Article 8.

“Foreign Exchange Reserve Percentage” means a percentage of reserves for FX Contracts as determined
by Bank, in its sole discretion from time to time.

“Formula Advance” means a cash advance or cash advances under the Formula Revolving Line.

“Formula Revolving Line” means a Credit Extension of up to $12,000,000; provided however, that
under no circumstances shall the aggregate amount of outstanding Advances exceed the Total Facility
Cap, and availability of Formula Advances under the Formula Revolving Line shall be reduced
accordingly.

“Formula Revolving Maturity Date” means August 3, 2013.

“FX Contracts” means contracts between Borrower and Bank for foreign exchange transactions.

“GAAP” means generally accepted accounting principles, consistently applied, as in effect from time
to time in the United States.

“Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of
property or services, including without limitation reimbursement and other obligations with respect
to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or
similar instruments, (c) all capital lease obligations, and (d) all Contingent Obligations,
including but not limited to any sublimit contained herein.

“Insolvency Proceeding” means any proceeding commenced by or against any Person or entity under any
provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or
insolvency law, including assignments for the benefit of creditors, formal or informal moratoria,
compositions, extension generally with its creditors, or proceedings seeking reorganization,
arrangement, or other relief.

“Inventory” means all present and future inventory in which Borrower has any interest.

“Investment” means any beneficial ownership of (including stock, partnership or limited liability
company interest or other securities) any Person, or any loan, advance or capital contribution to
any Person.

     “IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

4.

 

“Letter of Credit” means a commercial or standby letter of credit or similar undertaking issued by
Bank at Borrower’s request.

“Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other
encumbrance.

“Liquidity” means the sum of: (i) Cash in Bank; plus (ii) the most-recent Borrowing Base.

“Liquidity Ratio” means the ratio of Liquidity to all Indebtedness to Bank

“Loan Documents” means, collectively, this Agreement, any note or notes executed by Borrower, and
any other document, instrument or agreement entered into in connection with this Agreement, all as
amended or extended from time to time.

“Major Contract” means any contract, license, or other agreement to which Borrower is a party (i)
with Yahoo!, MSN/Bing or Google, or (ii) from which the Borrower derives 30.0% or more of its
revenues, provided that, for the purposes of this definition, the value of all contracts, licenses,
or other agreements with a customer shall be aggregated to determine whether such contracts,
licenses, or other agreements collectively meet or surpass the aforementioned 30.0% threshold, and
if they do, then all contracts, licenses, or other agreements from that customer shall collectively
be considered a “Major Contract” hereunder.

“Material Adverse Effect” means a material adverse effect on: (i) the operations, business or
financial condition of Borrower and its Subsidiaries taken as a whole; (ii) the ability of Borrower
to repay the Obligations or otherwise perform its obligations under the Loan Documents; or (iii)
Borrower’s interest in, or the value, perfection or priority of Bank’s security interest in the
Collateral.

“Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is
a beneficiary, drafts, instruments (including promissory notes), securities, documents of title,
and chattel paper, and Borrower’s Books relating to any of the foregoing.

“Non-Formula Advance” means a cash advance or cash advances under the Non-Formula Revolving Line.

“Non-Formula Revolving Line” means a Credit Extension of up to $3,000,000; provided however, that
under no circumstances shall the aggregate amount of outstanding Advances exceed the Total Facility
Cap, and availability of Non-Formula Advances under the Non-Formula Revolving Line shall be reduced
accordingly; and provided further however, that the outstanding principal balance of Non-Formula
Advances must equal Zero Dollars ($0.00) for at least thirty (30) consecutive days during the
immediately-preceding 364-day period.

“Non-Formula Revolving Maturity Date” means August 3, 2013.

“Obligations” means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by
Borrower pursuant to this Agreement or any other agreement, whether absolute or contingent, due or
to become due, now existing or hereafter arising, including any interest that accrues after the
commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing
from Borrower to others that Bank may have obtained by assignment or otherwise.

“Patents” means all patents, patent applications and like protections including without limitation
improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of
the same.

“Periodic Payments” means all installments or similar recurring payments that Borrower may now or
hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument,
or agreement now or hereafter in existence between Borrower and Bank.

5.

 

“Permitted Indebtedness” means:

(a) Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan
Document;

(b) Indebtedness existing on the Closing Date and disclosed in the Schedule;

(c) Indebtedness not to exceed $250,000 in the aggregate in any fiscal year of Borrower secured by
a lien described in clause (c) of the defined term “Permitted Liens,” provided such Indebtedness
does not exceed at the time it is incurred the lesser of the cost or fair market value of the
property financed with such Indebtedness;

(d) Subordinated Debt;

(e) Indebtedness to trade creditors incurred in the ordinary course of business; and

(f) Extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the
principal amount is not increased or the terms modified to impose more burdensome terms upon
Borrower or its Subsidiary, as the case may be.

“Permitted Investment” means:

(a) Investments existing on the Closing Date disclosed in the Schedule;

(b) (i) Marketable direct obligations issued or unconditionally guaranteed by the United States of
America or any agency or any State thereof maturing within one year from the date of acquisition
thereof, (ii) commercial paper maturing no more than one year from the date of creation thereof and
currently having rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s
Investors Service, (iii) Bank’s certificates of deposit maturing no more than one year from the
date of investment therein, and (iv) Bank’s money market accounts; (v) Investments in regular
deposit or checking accounts held with Bank or subject to a control agreement in favor of Bank; and
(vi) Investments consistent with any investment policy adopted by the Borrower’s board of
directors;

(c) Repurchases of stock from former employees or directors of Borrower under the terms of
applicable repurchase agreements (i) in an aggregate amount not to exceed $1,700,000 during the
term of this Agreement, provided that no Event of Default has occurred, is continuing or would
exist after giving effect to the repurchases and the aggregate amount of Borrower’s Cash held in
accounts at Bank equals or exceeds Eight Million Dollars ($8,000,000), or (ii) in any amount where
the consideration for the repurchase is the cancellation of indebtedness owed by such former
employees to Borrower regardless of whether an Event of Default exists;

(d) Investments accepted in connection with Permitted Transfers;

(e) Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower
in Subsidiaries not to exceed $250,000 in the aggregate in any fiscal year;

(f) Investments not to exceed $250,000 outstanding in the aggregate at any time consisting of (i)
travel advances and employee relocation loans and other employee loans and advances in the ordinary
course of business, and (ii) loans to employees, officers or directors relating to the purchase of
equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plan
agreements approved by Borrower’s Board of Directors;

(g) Investments in unfinanced capital expenditures in any fiscal year, not to exceed

6.

 

$1,000,000;

(h) Investments (including debt obligations) received in connection with the bankruptcy or
reorganization of customers or suppliers and in settlement of delinquent obligations of, and other
disputes with, customers or suppliers arising in the ordinary course of Borrower’s business;

(i) Investments consisting of notes receivable of, or prepaid royalties and other credit
extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business,
provided that this subparagraph (h) shall not apply to Investments of Borrower in any Subsidiary;

(j) Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting
of the non-exclusive licensing of technology, the development of technology or the providing of
technical support, provided that any cash Investments by Borrower do not exceed $1,000,000 in the
aggregate in any fiscal year; and

(k) Investments permitted under Section 7.3.

“Permitted Liens” means the following:

(a) Any Liens existing on the Closing Date and disclosed in the Schedule (excluding Liens to be
satisfied with the proceeds of the Credit Extensions) or arising under this Agreement, the other
Loan Documents, or any other agreement in favor of Bank;

(b) Liens for taxes, fees, assessments or other governmental charges or levies, either not
delinquent or being contested in good faith by appropriate proceedings and for which Borrower
maintains adequate reserves;

(c) Liens not to exceed $250,000 in the aggregate (i) upon or in any Equipment (other than
Equipment financed by a Credit Extension) acquired or held by Borrower or any of its Subsidiaries
to secure the purchase price of such Equipment or indebtedness incurred solely for the purpose of
financing the acquisition or lease of such Equipment, or (ii) existing on such Equipment at the
time of its acquisition, in each case provided that the Lien is confined solely to the property so
acquired and improvements thereon, and the proceeds of such Equipment;

(d) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness
secured by Liens of the type described in clauses (a) through (c) above, provided that any
extension, renewal or replacement Lien shall be limited to the property encumbered by the existing
Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not
increase;

(e) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event
of Default under Sections 8.4 (attachment) or 8.7 (judgments); and

(f) Liens securing Subordinated Debt.

“Permitted Transfer” means the conveyance, sale, lease, transfer or disposition by Borrower or any
Subsidiary of:

(a) Inventory in the ordinary course of business;

(b) licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries
in the ordinary course of business;

7.

 

(c) worn-out, surplus or obsolete Equipment not financed with the proceeds of Credit Extensions;

(d) grants of security interests and other Liens that constitute Permitted Liens; and

(e) other assets of Borrower or its Subsidiaries that do not in the aggregate exceed $250,000
during any fiscal year.

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint
venture, trust, unincorporated organization, association, corporation, institution, public benefit
corporation, firm, joint stock company, estate, entity or governmental agency.

“Prime Rate” means the variable rate of interest, per annum, most recently announced by Bank, as
its “prime rate,” whether or not such announced rate is the lowest rate available from Bank.

“Responsible Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the
Chief Financial Officer, Vice President of Finance and the Controller of Borrower, as well as any
other officer or employee identified in as an Authorized Officer in the corporate resolution
delivered by Borrower to Bank in connection with this Agreement.

“Schedule” means the schedule of exceptions attached hereto and approved by Bank, if any.

“Shares” means (i) sixty-five percent (65%) of the issued and outstanding capital stock, membership
units or other securities owned or held of record by Borrower in any Subsidiary of Borrower which
is not an entity organized under the laws of the United States or territory thereof, and (ii) one
hundred percent (100%) of the issued and outstanding capital stock, membership units or other
securities owned or held of record by Borrower in any Subsidiary of Borrower which is an entity
organized under the laws of the United States or any territory thereof

“SOS Reports” means the official reports from the Secretaries of State of each Collateral State,
the state where Borrower’s chief executive office is located, the state of Borrower’s formation and
other applicable federal, state or local government offices identifying all current security
interests filed in the Collateral and Liens of record as of the date of such report.

“Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt
owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by
Borrower and Bank).

“Subsidiary” means any corporation, partnership or limited liability company or joint venture in
which (i) any general partnership interest or (ii) more than 50% of the stock, limited liability
company interest or joint venture of which by the terms thereof ordinary voting power to elect the
Board of Directors, managers or trustees of the entity, at the time as of which any determination
is being made, is owned by Borrower, either directly or through an Affiliate.

“Total Facility Cap” means Twelve Million Dollars ($12,000,000).

“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the entire goodwill of the
business of Borrower connected with and symbolized by such trademarks.

8.

 

	 	 	 

	DEBTOR:

	 	LOCAL.COM CORPORATION
	 
	 	 
	SECURED PARTY:

	 	SQUARE 1 BANK

EXHIBIT B

COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT

All personal property of Borrower (herein referred to as “Borrower” or “Debtor”) whether presently
existing or hereafter created or acquired, and wherever located, including, but not limited to:

(f) all accounts (including health-care-insurance receivables), chattel paper (including tangible
and electronic chattel paper), deposit accounts, documents (including negotiable documents),
equipment (including all accessions and additions thereto), financial assets, general intangibles
(including patents, trademarks, copyrights, goodwill, payment intangibles and software), goods
(including fixtures), instruments (including promissory notes), inventory (including all goods held
for sale or lease or to be furnished under a contract of service, and including returns and
repossessions), investment property (including securities and securities entitlements), letter of
credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing,
and the computers and equipment containing said books and records;

(g) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without
limitation, insurance proceeds, and all supporting obligations and the security therefor or for any
right to payment. All terms above have the meanings given to them in the California Uniform
Commercial Code, as amended or supplemented from time to time, including revised Division 9 of the
Uniform Commercial Code-Secured Transactions.

          Notwithstanding the foregoing, the Collateral shall not include any of the intellectual
property, in any medium, of any kind or nature whatsoever, now or hereafter owned or acquired or
received by Borrower, or in which Borrower now holds or hereafter acquires or receives any right or
interest (collectively, the “Intellectual Property”); provided, however, that the Collateral shall
include all accounts and general intangibles that consist of rights to payment and proceeds from
the sale, licensing or disposition of all or any part, or rights in, the foregoing (the “Rights to
Payment”).

          Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court)
holds that a security interest in the underlying Intellectual Property is necessary to have a
security interest in the Rights to Payment, then the Collateral shall automatically, and effective
as of August 3, 2011 include the Intellectual Property to the extent and only to the extent
necessary to permit perfection of Bank’s security interest in the Rights to Payment, and further
provided, however, that Bank’s enforcement rights with respect to any security interest in the
Intellectual Property shall be absolutely limited to the Rights to Payment only, and Bank shall
have no recourse whatsoever with respect to the underlying Intellectual Property.

1.

 

	 	 	 

	DEBTOR:

	 	KRILLION, INC.
	 
	 	 
	SECURED PARTY:

	 	SQUARE 1 BANK

EXHIBIT B

COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT

All personal property of Borrower (herein referred to as “Borrower” or “Debtor”) whether presently
existing or hereafter created or acquired, and wherever located, including, but not limited to:

(a) all accounts (including health-care-insurance receivables), chattel paper (including tangible
and electronic chattel paper), deposit accounts, documents (including negotiable documents),
equipment (including all accessions and additions thereto), financial assets, general intangibles
(including patents, trademarks, copyrights, goodwill, payment intangibles and software), goods
(including fixtures), instruments (including promissory notes), inventory (including all goods held
for sale or lease or to be furnished under a contract of service, and including returns and
repossessions), investment property (including securities and securities entitlements), letter of
credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing,
and the computers and equipment containing said books and records;

(b) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without
limitation, insurance proceeds, and all supporting obligations and the security therefor or for any
right to payment. All terms above have the meanings given to them in the California Uniform
Commercial Code, as amended or supplemented from time to time, including revised Division 9 of the
Uniform Commercial Code-Secured Transactions.

          Notwithstanding the foregoing, the Collateral shall not include any of the intellectual
property, in any medium, of any kind or nature whatsoever, now or hereafter owned or acquired or
received by Borrower, or in which Borrower now holds or hereafter acquires or receives any right or
interest (collectively, the “Intellectual Property”); provided, however, that the Collateral shall
include all accounts and general intangibles that consist of rights to payment and proceeds from
the sale, licensing or disposition of all or any part, or rights in, the foregoing (the “Rights to
Payment”).

          Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court)
holds that a security interest in the underlying Intellectual Property is necessary to have a
security interest in the Rights to Payment, then the Collateral shall automatically, and effective
as of August 3, 2011 include the Intellectual Property to the extent and only to the extent
necessary to permit perfection of Bank’s security interest in the Rights to Payment, and further
provided, however, that Bank’s enforcement rights with respect to any security interest in the
Intellectual Property shall be absolutely limited to the Rights to Payment only, and Bank shall
have no recourse whatsoever with respect to the underlying Intellectual Property.

2.

 

	 	 	 

	DEBTOR:

	 	SCREAMIN MEDIA GROUP, INC.
	 
	 	 
	SECURED PARTY:

	 	SQUARE 1 BANK

EXHIBIT B

COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT

All personal property of Borrower (herein referred to as “Borrower” or “Debtor”) whether presently
existing or hereafter created or acquired, and wherever located, including, but not limited to:

(a) all accounts (including health-care-insurance receivables), chattel paper (including tangible
and electronic chattel paper), deposit accounts, documents (including negotiable documents),
equipment (including all accessions and additions thereto), financial assets, general intangibles
(including patents, trademarks, copyrights, goodwill, payment intangibles and software), goods
(including fixtures), instruments (including promissory notes), inventory (including all goods held
for sale or lease or to be furnished under a contract of service, and including returns and
repossessions), investment property (including securities and securities entitlements), letter of
credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing,
and the computers and equipment containing said books and records;

(b) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without
limitation, insurance proceeds, and all supporting obligations and the security therefor or for any
right to payment. All terms above have the meanings given to them in the California Uniform
Commercial Code, as amended or supplemented from time to time, including revised Division 9 of the
Uniform Commercial Code-Secured Transactions.

          Notwithstanding the foregoing, the Collateral shall not include any of the intellectual
property, in any medium, of any kind or nature whatsoever, now or hereafter owned or acquired or
received by Borrower, or in which Borrower now holds or hereafter acquires or receives any right or
interest (collectively, the “Intellectual Property”); provided, however, that the Collateral shall
include all accounts and general intangibles that consist of rights to payment and proceeds from
the sale, licensing or disposition of all or any part, or rights in, the foregoing (the “Rights to
Payment”).

          Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court)
holds that a security interest in the underlying Intellectual Property is necessary to have a
security interest in the Rights to Payment, then the Collateral shall automatically, and effective
as of August 3, 2011 include the Intellectual Property to the extent and only to the extent
necessary to permit perfection of Bank’s security interest in the Rights to Payment, and further
provided, however, that Bank’s enforcement rights with respect to any security interest in the
Intellectual Property shall be absolutely limited to the Rights to Payment only, and Bank shall
have no recourse whatsoever with respect to the underlying Intellectual Property.

3.exv4w1

Exhibit
4.1

REGISTRATION RIGHTS AGREEMENT

          This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into
effective as of August 1, 2011, by and among Cumulus Media Inc., a Delaware corporation (the
“Company”), each of the initial parties listed on the signatures pages hereto under the
heading “Sponsor Stockholders” (each, a “Sponsor Stockholder”), each of the initial parties
listed on the signatures pages hereto under the heading “BA Stockholders” (each, a “BA
Stockholder”), each of the initial parties listed on the signatures pages hereto under the
heading “Dickey Stockholders” (each, a “Dickey Stockholder”) and each former holder of
Radio Holdings Warrants (as defined below) that becomes a party to this Agreement by delivering to
the Company a duly executed joinder to this Agreement in the form attached hereto as Exhibit
A or such other form approved by the Company having the same effect thereof (each, a
“Warrant Stockholder”, together with the Sponsor Stockholders, the Dickey Stockholders and
the BA Stockholders, collectively, the “Stockholders”).

RECITALS

          WHEREAS, pursuant to the terms of that certain Exchange Agreement, dated as of January 31,
2011 (the “Exchange Agreement”), to which the Company and the Sponsor Stockholders are
party, the Company is directly or indirectly acquiring from the Sponsor Stockholders all of the
equity interests in Cumulus Media Partners, LLC, a Delaware limited liability company, that are not
already owned by the Company;

          WHEREAS, pursuant to the terms of that certain Radio Holdings Warrant Amendment (as defined
below), Radio Holding Warrants have been or will be converted into Class D Common Stock;

          WHEREAS, the consideration payable to the Sponsor Stockholders pursuant to the Exchange
Agreement and related transactions contemplated thereby and the shares issued, or to be issued,
upon conversion of the Radio Holdings Warrants and held by the Warrant Stockholder parties hereto,
consists of shares of Company Common Stock (collectively, “Closing Shares”);

          WHEREAS, the Company has agreed to provide certain registration rights to the Sponsor
Stockholders and the Warrant Stockholders with respect to the Closing Shares;

          WHEREAS, the Company, the BA Stockholders and the Dickey Stockholders are party to certain
Existing Registration Rights Agreements (as defined below) providing for certain registration
rights;

          WHEREAS, such parties to the Existing Registration Rights Agreements desire to terminate such
Existing Registration Rights Agreements and enter into this Agreement, which provides them certain
registration rights as set forth herein; and

          WHEREAS, the Company and the Stockholders are entering into this Agreement to set forth the
terms and conditions applicable to such registration rights;

          NOW, THEREFORE, in consideration of the mutual agreements contained

 

 

herein, the Company and the Stockholders agree as follows:

ARTICLE I

DEFINITIONS

          Capitalized terms not otherwise defined herein have the meaning set forth in the Exchange
Agreement. As used in this Agreement, the following terms have the following meanings:

     “1998 Registration Rights Agreement” means the Registration Rights Agreement, dated as of June
30, 2008, by and among the Company and the other parties indicated thereto as “Shareholders.”

     “Affiliate” of any particular Person means any other Person controlling, controlled by or
under common control with such particular Person, where “control” means the possession, directly or
indirectly, of the power to direct the management and policies of a Person whether through the
ownership of voting securities or otherwise.

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

     “Applicable Period” means the period, beginning on the date hereof and ending on the date on
which the Closing Shares Shelf Expiration has occurred.

     “BA Stockholders” has the meaning set forth in the preamble.

     “Bain Stockholders” means each of the Sponsor Stockholders designated as such on Annex
A hereto.

     “Blackstone Stockholders” means each of the Sponsor Stockholders designated as such on
Annex A hereto.

     “Closing Shares” has the meaning set forth in the recitals.

     “Closing Shares Registration Statement” means the Company’s “shelf” Registration Statement on
Form S-3 (or a successor form) that covers the resale, to be made on a delayed or continuous basis,
of all of the Closing Shares that constitute Registrable Securities (and may include other
Registrable Securities held by the other Stockholders, as set forth herein), under Rule 415 under
the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such Registration Statement, including post-effective amendments, in each case
including the prospectus contained therein, all exhibits thereto and all material incorporated by
reference therein; provided, that if the Company is a WKSI such “shelf” Registration
Statement shall cover an unspecified number of shares to be sold by the Stockholders.

     “Closing Shares Shelf Expiration” has the meaning set forth in Section 2.1(a).

2

 

     “Company” has the meaning set forth in the preamble and shall include the Company’s
successors.

     “Company Common Stock” means both Company Voting Common Stock and Company Non-Voting Common
Stock.

     “Company Non-Voting Common Stock” means, together, shares of the Company’s Class B Common
Stock, par value $0.01 per share, and shares of the Company’s Class D Common Stock, par value $0.01
per share.

     “Company Voting Common Stock” means, together, shares of the Company’s Class A Common Stock,
par value $0.01 per share, and shares of the Company’s Class C Common Stock, par value $0.01 per
share.

     “Demand Registration” has the meaning set forth in Section 2.2.

     “Demand Registration Statement” means a Registration Statement filed by the Company with the
SEC pursuant to Section 2.2 hereof, and all amendments and supplements to such Registration
Statement, including post-effective amendments, in each case including the prospectus contained
therein, all exhibits thereto and all material incorporated by reference therein.

     “Dickey Stockholders” has the meaning set forth in the preamble.

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

     “Exchange Agreement” has the meaning set forth in the recitals.

     “Existing Registration Rights Agreements” means, collectively, the 1998 Registration Rights
Agreement, the January 2002 Registration Rights Agreement and the March 2002 Registration Rights
Agreement.

     “Initiating Shareholder” has the meaning set forth in Section 2.2.

     “January 2002 Registration Rights Agreement” means the Amended and Restated Registration
Rights Agreement, dated as of January 23, 2002, by and among the Company, Aurora Communications,
LLC and the other parties indicated thereto as “Sellers.”

     “Lock-Up Expiration Date” means the date that is nine (9) months following the date hereof.

     “March 2002 Registration Rights Agreement” means the Registration Rights Agreement, entered
into in March 2002, between the Company and DBBC, L.L.C.

     “NASDAQ” means the Nasdaq Stock Market, Inc.

3

 

     “Permitted Interruption” has the meaning set forth in Section 2.6(c).

     “Person” means an individual, limited liability company, association, joint stock company,
partnership, corporation, trust, estate or unincorporated organization.

     “Piggyback Registration” has the meaning set forth in Section 2.3.

     “Piggyback Stockholders” has the meaning set forth in Section 2.3.

     “Radio Holdings Warrant Amendment” means the Radio Holdings Warrant Agreement Amendment as
defined in the Exchange Agreement.

     “Radio Holdings Warrants” has the meaning set forth in the Exchange Agreement.

     “Registrable Securities” means all shares of Company Common Stock held by the Stockholders on
the date hereof, or issued to the Warrant Stockholders pursuant to the Radio Holdings Warrant
Amendment subsequent to the date hereof, including the Closing Shares, and any shares of Company
Common Stock issued or issuable to any Stockholder with respect thereto by way of stock dividend or
distribution, stock split, or in connection with any combination of shares, recapitalization,
merger, share exchange, conversion, consolidation or similar transaction (including pursuant to
Section 7.8(e) of the Exchange Agreement); provided, however, that any such shares
shall cease to be Registrable Securities (i) when they have been sold pursuant to a Registration
Statement (except as permitted by the proviso to the second sentence of Section 6.1), (ii)
with respect to any Stockholder, at such time as the entire amount of such Stockholder’s
Registrable Securities may be sold in a single sale, in the opinion of counsel satisfactory to the
Company and such holder, each in their reasonable judgment, without any limitation as to volume
pursuant to Rule 144 of the Securities Act, (iii) have been transferred to someone other than a
Stockholder or a Person who becomes a Stockholder in accordance with Section 6.1 hereof, or
(iv) have ceased to be outstanding.

     “Registration Expenses” has the meaning set forth in Section 3.7.

     “Registration Statement” means the Closing Shares Registration Statement, a Demand Shares
Registration Statement and any other registration statement prepared and filed with the SEC
pursuant to Article II hereof, and all amendments and supplements to such Registration
Statement, including post-effective amendments, in each case including the prospectus contained
therein, all exhibits thereto and all material incorporated by reference therein.

     “Required Stockholders” means, collectively (a) the holders of at least a majority of the
Registrable Securities held by the BA Stockholders, (b) the holders of at least a majority of the
Registrable Securities held by the Dickey Stockholders and (c) the holders of at least a majority
of the Registrable Securities held by the Blackstone Stockholders.

     “SEC” means the Securities and Exchange Commission.

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

4

 

     “Stockholder(s)” has the meaning set forth in the preamble, and such term shall include any
transferee to whom registration rights granted pursuant to this Agreement are validly assigned
pursuant to Section 6.1 hereof.

     “THL Stockholders” means each of the Sponsor Stockholders designated as such on Annex
A hereto.

     “underwritten offering” means a registered underwritten offering in which securities of the
Company are sold to one or more underwriters for reoffering to the public, pursuant to which the
Company’s officers shall use their reasonable best efforts to facilitate the distribution and sale
of any shares to be offered pursuant to this Agreement, including by making road show
presentations, holding meetings with and making calls to potential investors and taking such other
actions as shall be requested by the Stockholders or the lead managing underwriter of an
underwritten offering.

     “Warrant Stockholders” has the meaning set forth in the preamble.

     “WKSI” means a “well-known seasoned issuer” as defined in Rule 405 promulgated by the SEC.

ARTICLE II

DEMAND AND PIGGYBACK RIGHTS

          2.1 Closing Shares Registration Statement.

          (a) The Company shall prepare the Closing Shares Registration Statement and file it with the
SEC, and shall use reasonable best efforts to cause the Closing Shares Registration Statement to be
declared effective by the SEC on or prior to the Lock-Up Expiration Date. The Company shall use
reasonable best efforts to cause the Closing Shares Registration Statement to remain effective
(subject to Section 2.6(c)) until the earlier to occur of (i) the date on which all
Registrable Securities included within the Closing Shares Registration Statement have been sold
(other than in a private sale to a transferee to whom registration rights are effectively assigned
in accordance with Section 6.1 hereof) or (ii) the third (3rd) anniversary of
the date that the Closing Shares Registration Statement is declared effective by the SEC (the end
of such period, the “Closing Shares Shelf Expiration”). The Sponsor Stockholders and the
Warrant Stockholders who hold Registrable Securities each shall be entitled, at any time and from
time to time when the Closing Shares Registration Statement is effective, to sell such Registrable
Securities pursuant to such Closing Shares Registration Statement (each, a “Shelf
Takedown”). The Sponsor Stockholders and the Warrant Stockholders who hold Registrable
Securities each shall give the Company prompt written notice of the consummation of each Shelf
Takedown (whether or not underwritten). The resale of shares of Registrable Securities pursuant to
the Closing Shares Registration Statement may from time to time (without limitation as to the
number of times) from and after the date the Closing Shares Registration Statement is declared
effective by the SEC, upon the written request of any Sponsor Stockholder that holds, together with
its Affiliates, at least a simple majority of the Registrable Securities issued pursuant to the

5

 

Exchange to such Sponsor Stockholder and its Affiliates and included under the Closing Shares
Registration Statement, be an underwritten offering. In the event that any Sponsor Stockholder so
requests such an underwritten offering, then (i) the BA Stockholders, the other Sponsor
Stockholders and the Dickey Stockholders, in each of such Stockholders discretion, and to the
extent determined by the Company, the Warrant Stockholders, shall have the right to exercise
piggyback registration rights with respect to such offering, subject to this Section 2.1,
and (ii) the Company shall promptly notify each of the BA Stockholders, Sponsor Stockholders (other
than the Sponsor Stockholder making such request), Dickey Stockholders and, if applicable, Warrant
Stockholders of such development and such persons shall have thirty (30) days after receipt of such
notice to request the registration by the Company under the Securities Act of Registrable
Securities not otherwise registered pursuant to a Closing Shares Registration Statement in
connection with such proposed underwritten offering of securities. The Company, BA Stockholders,
the Sponsor Stockholders, Dickey Stockholders and, if applicable, Warrant Stockholders shall use
their reasonable best efforts to cooperate in taking any customary actions necessary or
appropriate, including making necessary filings with the SEC, to permit any such Stockholder to
exercise their piggyback registration rights in such circumstances.

          (b) If the Closing Shares Shelf Registration Statement ceases to be effective for any reason
at any time (other than (i) because all securities included within the Closing Shares Registration
Statement have been sold or have ceased to be Registrable Securities or (ii) after the third
(3rd) anniversary of the date that the Closing Shares Registration Statement is declared
effective by the SEC), the Company shall use its reasonable best efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event shall within 45 days
of such cessation of effectiveness amend the Closing Shares Shelf Registration Statement in a
manner to obtain the withdrawal of the order suspending the effectiveness thereof, or file an
additional “shelf” Registration Statement pursuant to Rule 415 promulgated by the SEC covering all
of the Registrable Securities included in the Closing Shares Shelf Registration Statement (in which
case the provisions of Section 2.1(a) shall apply to such subsequent or additional “shelf”
Registration Statement).

          (c) In any underwritten Shelf Takedown, the Company shall select the underwriters, subject,
however, to the approval of the Sponsor Stockholder requesting such Shelf Takedown, which approval
shall not be unreasonably withheld or delayed. If the managing underwriters advise the Sponsor
Stockholder requesting such Shelf Takedown and the Company that, in their opinion, the number of
shares requested to be included in such underwritten offering exceeds the amount that can be sold
in such underwritten offering without adversely affecting the distribution (including the timing
and/or price at which the Registrable Securities can be sold) of the shares being offered, such
underwritten offering will include only the number of shares that the underwriters advise can be
sold in such underwritten offering without having an adverse effect on the distribution (including
the timing and/or price at which the Registrable Securities can be sold) of the shares being
offered. The Company will include in such underwritten offering pursuant to the Closing Shares
Registration Statement, to the extent of the number which the Sponsor Stockholder requesting such
Shelf Takedown and the Company is so advised can be sold in such underwritten offering,
first, during the Applicable Period, Registrable Securities proposed by the BA
Stockholders, if any, to be sold; second, Registrable Securities of the Sponsor
Stockholders, pro rata, on the basis of the number of shares of such securities requested to be
included by such Sponsor Stockholders; and third, Registrable Securities of the

6

 

Dickey Stockholders, and to the extent determined by the Company, the Warrant Stockholders,
pro rata, on the basis of the number of shares of such securities requested to be included by such
Stockholders.

          2.2 Demand Registration Rights. (i) The BA Stockholders, as a group, shall have five (5) rights commencing on the date
hereof, (ii) the Dickey Stockholders, as a group shall have one (1) right commencing on the date
hereof, (iii) the Bain Stockholders, as a group, shall have one (1) right commencing upon the
Closing Shares Shelf Expiration, (iv) the Blackstone Stockholders, as a group, shall have one (1)
right commencing upon the Closing Shares Shelf Expiration and (iii) THL Stockholders, as a group
shall have one (1) right commencing upon the Closing Shares Shelf Expiration (each such Stockholder
so requesting a Demand Registration, an “Initiating Stockholder”), in each case exercisable
by written notice (given by, as applicable, any of the BA Stockholders on behalf of the BA
Stockholders, any of the Dickey Stockholders on behalf of the Dickey Stockholders, any of the Bain
Stockholders on behalf of the Bain Stockholders, any of the Blackstone Stockholders on behalf of
the Blackstone Stockholders, or any of the THL Stockholders on behalf of the THL Stockholders) to
the Company (with a copy to be provided by the Company to each of the other Stockholders) to
request that the Company effect the registration under the Securities Act of all or a part of the
Initiating Stockholder’s Registrable Securities (a “Demand Registration”). The Company
shall use reasonable best efforts to cause any Registration Statement filed pursuant to this
Section 2.2 (subject to Section 2.6(c)hereof) to remain effective until the
earlier of (i) the date on which all Registrable Securities included within such Registration
Statement have been sold (other than in a private sale to a transferee to whom registration rights
are effectively assigned in accordance with Section 6.1 hereof) and (ii) the expiration of
one (1) year from the date such Registration Statement first becomes effective (exclusive of any
period during which the holders of Registrable Securities are prohibited or impaired from
disposition of Registrable Securities by reason of the occurrence of a Permitted Interruption), at
which time the Company shall have the right to deregister any of such securities that remain
unsold.

          2.3 Piggyback Registration Rights. If the Company at any time proposes to register any securities (whether pursuant to the
exercise of demand registration rights by a securityholder of the Company or at the initiative of
the Company) under the Securities Act (other than the Closing Shares Registration Statement, except
with respect to the BA Stockholders, the Dickey Stockholders, the Sponsor Stockholders, and to the
extent determined by the Company, the Warrant Stockholders, solely as provided in Section
2.1) in connection with a public offering of such securities for cash, whether for its own
account or for the account of other securityholders, and the form of registration statement to be
used may be used for the registration of Registrable Securities held by the Stockholders, any of
the Sponsor Stockholders, the BA Stockholders, and the Dickey Stockholders and, at the option of
and to the extent determined by the Company, the Warrant Stockholders (“Piggyback
Stockholders”), may, by written notice to the Company, request that any or all Registrable
Securities not otherwise registered pursuant to a Registration Statement (other than the Closing
Shares Registration Statement, except with respect to the BA Stockholders, the Dickey Stockholders,
the Sponsor Stockholders, and to the extent determined
by the Company, the Warrant Stockholders, solely as provided in Section 2.1) be
included in such proposed registration of securities by the Company under the Securities Act (a
“Piggyback Registration”). The Company will facilitate such Piggyback Registration in the
manner described in this Agreement.

7

 

          2.4 Additional Demand Registrations. If the Company effects the registration of less
than all of the Registrable Securities requested to be included by the Initiating Stockholder in a
Demand Registration under Section 2.2 solely as a result of the operation of Section
3.4, then the Initiating Stockholder shall be entitled to request an additional Demand
Registration with respect to such Registrable Securities that were not so registered;
provided, that at least six (6) months have elapsed since the effective date of the most
recent Demand Registration. If the Company withdraws or suspends any Demand Registration pursuant
to Section 2.6(c) before the expiration of such Demand Registration pursuant to Section
2.2, and before all of the Registrable Securities covered by such Demand Registration have been
sold pursuant thereto, the Initiating Stockholder shall be entitled to request an additional Demand
Registration with respect to such Registrable Securities that were not so sold. Any such
additional Demand Registration shall be requested and effected in the manner and subject to the
procedures that applied with respect to the Demand Registration that was the subject of the cutback
in Section 3.4.

          2.5 Effective Registration Statement. A Demand Registration pursuant to Section
2.2 shall not be deemed to have been effected and shall not count against the limit on the
number of such registrations set forth in Section 2.2 unless (i) a Registration Statement
with respect thereto has become effective and, after it has become effective, such Demand
Registration is not interfered with by any stop order, injunction or other order or requirement of
the SEC or other governmental agency or court for any reason, and (ii) the sale of Registrable
Securities contemplated thereby (if underwritten) has been consummated.

          2.6 Limitations on Demand and Piggyback Rights.

          (a) With respect to any registrations requested pursuant to Section 2.2 or Section
2.4, the Company may include in such registration any other equity securities of the Company.
Notwithstanding anything in this Agreement to the contrary, the Stockholders will not have
piggyback or other registration rights with respect to registered primary offerings by the Company
(i) covered by a Form S-8 Registration Statement (or a successor form) applicable to employee
benefit-related offers and sales, (ii) where the securities are not being sold for cash, (iii)
covered by a registration statement on Form S-4 (or successor form) or (iv) relating to a corporate
reorganization pursuant to Rule 145 promulgated by the SEC.

          (b) Any demand for the filing of a Registration Statement will be subject to the constraints
of any applicable lockup arrangements entered into by the Company in connection with a then pending
underwritten offering, and such demand must be deferred until such lockup arrangements no longer
apply. If a demand has been made under this Article II, no further demands may be made so
long as the related offering is still being pursued in good faith.

          (c) The Company may postpone the filing of any Registration Statement or suspend the
effectiveness of any Registration Statement, any amendment or post-effective amendment thereto or
prospectus supplement for a reasonable “blackout period” not in excess of 180 days if the board of
directors of the Company determines in good faith that such registration, offering, amendment or
supplement (i) would materially interfere with a bona fide business, financing or acquisition
(including any merger, reorganization, consolidation, tender offer or similar transaction)
transaction of the Company, (ii) is reasonably likely to require premature

8

 

disclosure of material, nonpublic information, the premature disclosure of which the board of directors reasonably
determines in the exercise of its good faith judgment (and not for the avoidance of its obligations
under this Agreement) would not be in the best interests of the Company, or (iii) could not be
effected by the Company in compliance with the applicable financial statement requirements under
the Securities Act or Exchange Act (such event described in this Section 2.6(c) during
which the Company is not required to make such filing, amendment or supplement is herein referred
to as a “Permitted Interruption”); provided, however, that the Company
shall not postpone the filing of a demanded Registration Statement or suspend the effectiveness of
any Registration Statement pursuant to this Section 2.6 more than once in any 360 day
period. If a Permitted Interruption affects a Registration Statement during the period such
Registration Statement remains effective, the Company agrees to notify each of the Stockholders so
affected by a Permitted Interruption in writing as promptly as practicable upon each of the
commencement and the termination of each Permitted Interruption. The Company shall not be required
in such notice of a Permitted Interruption to disclose the cause for such Permitted Interruption,
and each Stockholder agrees, subject to applicable law, that it will not disclose receipt of such
notice of Permitted Interruption to any Person. Each Stockholder agrees that, upon receipt of any
such notice from the Company, such Stockholder will forthwith discontinue disposition of
Registrable Securities pursuant to the applicable Registration Statement until the earlier of (i)
such Stockholder’s receipt of the Company’s notice as to the termination of the Permitted
Interruption and (ii) 180 days after receipt of the original notice of a Permitted Interruption.
In the event of a Permitted Interruption, the duration of the applicable period in which a
Registration Statement is to remain effective shall be extended by the number of days of such
period. The Company shall reimburse each holder of Registrable Securities for all costs and
expenses reasonably incurred by such Stockholder in connection with the postponement or withdrawal
of such a filing.

ARTICLE III

NOTICES, CUTBACKS AND OTHER MATTERS

          3.1 Notifications Regarding Registration Statements. In order for one or more Initiating Stockholders to exercise their right to demand that
a Registration Statement be filed, they must so notify the Company in writing indicating the number
of shares sought to be registered. The Company will keep the Stockholders contemporaneously
apprised of all pertinent aspects of its pursuit of any registration, whether pursuant to a
Stockholder Demand Registration or otherwise, with respect to which a Piggyback Registration
opportunity is available. Pending any required public
disclosure and subject to applicable legal requirements, the parties will maintain the
confidentiality of these discussions.

          3.2 Notifications Regarding Registration Piggyback Rights. Any Stockholder wishing to exercise its piggyback registration rights with respect to a
Registration Statement must notify the Company (and the Company shall promptly notify the other
Piggyback Stockholders thereof) of the number of shares it seeks to have included in such
Registration Statement. Such notice must be given as soon as practicable, but, subject to the next
sentence hereof, in no event later than 5:00 pm, New York City time, on the second trading day
prior to (i) if applicable, the date on which the preliminary prospectus intended to be used in

9

 

connection with pre-effective marketing efforts for the relevant offering is expected to be
finalized, and (ii) in any case, the date on which the pricing of the relevant offering is expected
to occur. Subject to Section 2.3, in the event that any sale of shares pursuant to a
Registration Statement is underwritten, the Company shall promptly notify each Piggyback
Stockholder of such development and the Piggyback Stockholders shall have thirty (30) days after
receipt of such notice to request the registration by the Company under the Securities Act of
registrable securities not otherwise registered pursuant to a Registration Statement (other than
the Closing Shares Registration Statement) in connection with such proposed registration of
securities.

          3.3 Plan of Distribution; Underwriters. The underwriters of any underwritten offering pursuant to a Demand Registration shall be
selected by the Company, subject, however, to the prior approval of the applicable Initiating
Stockholder, which approval shall not be unreasonably withheld or delayed; provided,
however, that such Initiating Stockholder shall not be required to pursue an underwritten
offering upon exercise of the Demand Registration. The Stockholders holding a majority of the
shares requested to be included in such offering shall be entitled to determine the plan of
distribution and to select counsel for the selling Stockholders (which may be the same as counsel
for the Company).

          3.4 Cutbacks. If the managing underwriters advise the Company and the selling Stockholders that, in their
opinion, the number of shares requested to be included in an underwritten offering (other than any
resale of Registrable Securities pursuant to the Closing Shares Registration Statement that is an
underwritten offering, which shall be subject to Section 2.1(c)) exceeds the amount that
can be sold in such offering without adversely affecting the distribution (including the timing
and/or price at which the Registrable Securities can be sold) of the shares being offered, such
offering will include only the number of shares that the underwriters advise can be sold in such
offering without having an adverse effect on the distribution (including the timing and/or price at
which the Registrable Securities can be sold) of the shares being offered. The Company will
include in such Registration Statement (other than any resale of Registrable Securities pursuant to
the Closing Shares Registration Statement that is an underwritten offering, which shall be subject
to Section 2.1(c)), to the extent of the number which the Company is so advised can be sold
in such offering, first, all securities proposed by the Company, if any, to be
sold for its own account; second, during the Applicable Period, Registrable Securities
requested by one or more of the BA Stockholders to be included, if any, in such Registration
Statement; third, Registrable Securities, if any, proposed to be included as a result of
the exercise of demand registration rights by the holders thereof (provided, that if such
Demand Registration is requested by an Initiating Stockholder at any time from and after the
Closing Shares Shelf Expiration, all Registrable Securities, if any, proposed to be included by any
of the Sponsor Stockholders, BA Stockholders and/or Dickey Stockholders pursuant to a piggyback
registration right shall be included, pro rata, on the basis of the number of shares of such
securities requested to be included in such Registration Statement by such Stockholders);
fourth, subject to the proviso in the immediately preceding clause, Registrable Securities
proposed to be included as a result of the exercise of any piggyback registration rights, if any,
pro rata, on the basis of the number of shares of such securities requested to be included in such
Registration Statement; and fifth, such other securities requested to be included therein,
pro rata, on the basis of the number of shares of such other securities requested to be included in
the Registration Statement.

10

 

          3.5 Withdrawals. Even if shares held by a Stockholder have been part of a registered underwritten offering,
such Stockholder may, no later than the time at which the public offering price and underwriters’
discount are determined with the managing underwriter, decline to sell all or any portion of the
shares being offered for its account. In the event of such a withdrawal, the Company and any
Stockholder having the right to participate in such offering may, in their discretion, include
additional shares in such offering in replacement of any shares so withdrawn without requiring any
further notice or piggyback registration rights with respect to the Stockholder that has withdrawn
its shares.

          3.6 Lockups. In connection with any underwritten offering of Registrable Securities, (i) the Company
(and each of its executive officers and directors) and (ii) each Stockholder which is selling
shares of Company Common Stock pursuant to its rights hereunder will agree (in the case of
Stockholders, with respect to shares of Company Common Stock and other securities exchangeable or
exercisable for, or convertible into, shares of Company Common Stock, in each case, respectively
held by them) to be bound by the underwriting agreement’s lockup restrictions (which must apply,
and continue to apply, in like manner to each of the Company (and each of its executive officers
and directors) and Stockholders participating in the underwritten offering) that are agreed to (a)
by the Company (if a majority of the shares being sold in such underwritten offering are being sold
for its account) or (b) by Stockholders holding a majority of shares being sold by all Stockholders
in such underwritten offering (if a majority of the shares being sold in such underwritten offering
are being sold by Stockholders), as applicable.

          3.7 Expenses. All costs and expenses incurred in connection with any Registration Statement or registered
offering that includes shares held by Stockholders, including all registration and filing fees,
printing expenses, reasonable fees and disbursements of counsel (including the fees and
disbursements of (a) one outside counsel for the BA Stockholders (if the BA Stockholders
include Registrable Securities in the Registration Statement) and (b) one outside counsel for
the other Stockholders selected by the holders of the majority of the shares of Registrable
Securities to be included in such Registration Statement (excluding the shares of Registrable
Securities held by the BA Stockholders)) and of the independent certified public accountants, and
the expense of qualifying such shares under state blue sky laws (all such expenses, the
“Registration Expenses”), will be borne by the Company. However, underwriters’, brokers’
and dealers’ discounts and commissions, or similar fees of securities industry professionals and
applicable transfer taxes, if any, in each case relating to shares sold for the account of a
Stockholder will be borne by such Stockholder.

ARTICLE IV

FACILITATING REGISTRATIONS AND OFFERINGS

          4.1 General. If the Company becomes obligated under this Agreement to facilitate a registration and
offering of shares on behalf of Stockholders, the Company will do so with the same degree of care
and dispatch as would reasonably be expected in the case of a registration and offering by the
Company of shares for its own account. Without limiting this general obligation, the Company will
fulfill its specific obligations as described in this Article IV.

11

 

          4.2 Registration Statements. In connection with each Registration Statement (including the Closing Shares Registration
Statement and any other Registration Statement that is demanded by Stockholders or as to which
piggyback rights otherwise apply), the Company will:

          (a) prepare and file with the SEC a Registration Statement (or an amendment or supplement to
the Closing Shares Registration Statement) covering the applicable shares, (ii) file amendments
thereto as warranted, (iii) seek the effectiveness thereof, and (iv) file with the SEC prospectuses
and prospectus supplements as may be required, all in consultation with the Stockholders and as
reasonably necessary in order to permit the offer and sale of the such shares in accordance with
the applicable plan of distribution;

     (b) (1) within a reasonable time prior to the filing of any Registration Statement, any
prospectus, any amendment to a Registration Statement, amendment or supplement to a
prospectus or any free writing prospectus, provide copies of such documents to the selling
Stockholders and to the underwriter or underwriters of an underwritten offering, if
applicable, and to their respective counsel; fairly consider such reasonable changes in any
such documents prior to or after the filing thereof as the counsel to the Stockholders or
the underwriter or the underwriters may request; and make such of the representatives of the
Company as shall be reasonably requested by the selling Stockholders or any underwriter
available for discussion of such documents;

     (2) within a reasonable time prior to the filing of any document which is to be
incorporated by reference into a Registration Statement or a prospectus, provide copies of
such document to counsel for the Stockholders and underwriters; fairly consider such
reasonable changes in such document prior to or after the filing thereof as counsel for such
Stockholders or such underwriter shall request; and make such of the representatives of the
Company as shall be reasonably requested by such counsel available for discussion of such
document;

          (c) cause each Registration Statement and the related prospectus and any amendment or
supplement thereto, as of the effective date of such Registration Statement, amendment or
supplement and during the distribution of the registered shares (x) to comply in all material
respects with the requirements of the Securities Act and the rules and regulations of the SEC and
(y) not to contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading;

          (d) notify each Stockholder promptly, and, if requested by such Stockholder, confirm such
advice in writing, (i) when a Registration Statement has become effective and when any
post-effective amendments and supplements thereto become effective if such Registration Statement
or post-effective amendment is not automatically effective upon filing pursuant to Rule 462
promulgated by the Securities Act, (ii) of the issuance by the SEC or any state securities
authority of any stop order, injunction or other order or requirement suspending the effectiveness
of a Registration Statement or the initiation of any proceedings for that purpose, (iii) if,
between the effective date of a Registration Statement and the closing of any sale of securities
covered thereby pursuant to any agreement to which the Company is a party, the representations and
warranties of the Company contained in such agreement cease to be true and correct in all material
respects or if the Company receives any notification with respect to the

12

 

suspension of the qualification of the shares for sale in any jurisdiction or the initiation of any proceeding for
such purpose, and (iv) of the happening of any event during the period a Registration Statement is
effective as a result of which such Registration Statement or the related prospectus contains any
untrue statement of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading;

          (e) furnish counsel for each underwriter, if any, and for the respective Stockholders copies
of any correspondence with the SEC or any state securities authority relating to the Registration
Statement or prospectus;

          (f) otherwise comply with all applicable rules and regulations of the SEC, including making
available to its security holders an earnings statement covering at least 12 months which shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any
similar provision then in force); and

          (g) use all reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement at the earliest possible time.

          4.3 Due Diligence. In connection with each registration and offering of shares to be sold by Stockholders, the
Company will, in accordance with customary practice, make available for inspection by
representatives of the Stockholders and underwriters and any counsel or accountant
retained by such Stockholder or underwriters all relevant financial and other records,
pertinent corporate documents and properties of the Company and cause appropriate officers,
managers and employees of the Company to supply all information reasonably requested by any such
representative, underwriter, counsel or accountant in connection with their due diligence exercise.

          4.4 Information from Stockholders. Each Stockholder that holds shares covered by any Registration Statement will furnish to
the Company such information regarding itself as is required to be included in the Registration
Statement, the ownership of shares by such Stockholder and the proposed distribution by such
Stockholder of such shares, and make such customary representations to the Company, as the Company
may from time to time reasonably request in writing. Each Stockholder authorizes the Company to
include such information (without independently verifying the accuracy or completeness thereof) in
the applicable Registration Statement or other documents prepared or filed in connection therewith.
Each Stockholder further agrees to promptly notify the Company of any inaccuracies or changes in
the information provided to the Company that it becomes aware of that may occur subsequent to the
date hereof at any time while a Registration Statement including shares owned by such Stockholder
remains effective. Each Stockholder agrees to distribute Registrable Securities included in the
Registration Statement only in the manner described in the applicable Registration Statement.

          4.5 Additional Agreements of Stockholders.

          (a) Each Stockholder agrees to, following such time that such Stockholder becomes aware, as
expeditiously as possible, (i) notify the Company of the occurrence of any event that makes any
statement made in any Registration Statement or any related prospectus

13

 

regarding such Stockholder
untrue in any material respect or that requires the making of any changes in either a Registration
Statement or prospectus regarding such Stockholder so that, in such regard, (A) in the case of a
Registration Statement, it will not contain any untrue statement of material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not
misleading and (B) in the case of a prospectus, it will not contain any untrue statement of
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances in which they were made, not misleading, and
(ii) provide the Company with such information as may be required to enable the Company to prepare
a supplement or post-effective amendment to the applicable Registration Statement or a supplement
to such prospectus.

          (b) Each Stockholder agrees that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 4.2(d)(ii) or Section 4.2(d)(iv)
hereof, such Stockholder will forthwith discontinue disposition of Registrable Securities pursuant
to the Registration Statement until such Stockholder’s receipt of the copies of any necessary
supplements or amendments to such Registration Statement or applicable prospectus, and, if so
directed by the Company, such Stockholder will deliver to the Company all copies in its possession,
other than permanent file copies then in such Stockholder’s possession, of the Registration
Statement or applicable prospectus covering such Registrable Securities at the time of receipt of
such notice. Each Stockholder agrees that in the event it receives any notice
from the Company under Section 4.2(d)(ii) or Section 4.2(d)(iv), it will not
disclose such fact to any person.

          4.6 Non-Shelf Registered Offerings and Shelf Takedowns. In connection with any non-shelf registered offering or Shelf Takedown that is demanded by
Stockholders or as to which piggyback rights otherwise apply, the Company will:

          (a) cooperate with the selling Stockholders shares and the sole underwriter or managing
underwriter of an underwritten offering shares, if any, to facilitate the timely preparation and
delivery of certificates representing the shares to be sold and not bearing any restrictive
legends; and enable such shares to be in such denominations (consistent with the provisions of the
governing documents thereof) and registered in such names as the selling Stockholders or the sole
underwriter or managing underwriter of an underwritten offering of shares, if any, may reasonably
request at least five days prior to any sale of such shares;

          (b) furnish to each Stockholder and to each underwriter, if any, participating in the relevant
offering, without charge, as many copies of the applicable prospectus, including each preliminary
prospectus, and any amendment or supplement thereto and such other documents as such Stockholder or
underwriter may reasonably request in order to facilitate the public sale or other disposition of
the shares; the Company hereby consents to the use of the prospectus, including each preliminary
prospectus, by each such Stockholder and underwriter in connection with the offering and sale of
the shares covered by the prospectus or the preliminary prospectus;

          (c) (i) use all reasonable efforts to register or qualify the shares being offered and sold,
no later than the time the applicable registration statement becomes effective, under all
applicable state securities or “blue sky” laws of such jurisdictions as each underwriter, if any,
or

14

 

any Stockholder holding shares covered by a registration statement, shall reasonably request;
(ii) use all reasonable efforts to keep each such registration or qualification effective during
the period such registration statement is required to be kept effective; and (iii) do any and all
other acts and things which may be reasonably necessary or advisable to enable each such
underwriter, if any, and Stockholder to consummate the disposition in each such jurisdiction of
such shares owned by such Stockholder; provided, however, that the Company shall
not be obligated to qualify as a foreign corporation or as a dealer in securities in any
jurisdiction in which it is not so qualified or to consent to be subject to general service of
process (other than service of process in connection with such registration or qualification or any
sale of shares in connection therewith) in any such jurisdiction;

          (d) cause all shares being sold to be qualified for inclusion in or listed on NASDAQ or any
other U.S. securities exchange on which shares issued by the Company are then so qualified or
listed if so requested by the Stockholders, or if so requested by the underwriter or underwriters
of an underwritten offering of shares, if any;

          (e) cooperate and assist in any filings required to be made with Financial Industry Regulatory
Authority and in the performance of any due diligence investigation by any underwriter in an
underwritten offering;

          (f) use all reasonable efforts to facilitate the distribution and sale of any shares to be
offered pursuant to this Agreement, including by making road show presentations, holding meetings
with and making calls to potential investors and taking such other actions as shall be requested by
the Stockholders or the lead managing underwriter of an underwritten offering; and

          (g) enter into customary agreements (including, in the case of an underwritten offering,
underwriting agreements in customary form, and including provisions with respect to indemnification
and contribution in customary form and consistent with the provisions relating to indemnification
and contribution contained herein) and take all other customary and appropriate actions in order to
expedite or facilitate the disposition of such shares and in connection therewith:

     (1) make such representations and warranties to the selling Stockholders and the
underwriters, if any, in form, substance and scope as are customarily made by issuers to
underwriters in similar underwritten offerings;

     (2) obtain opinions of counsel to the Company and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the lead
managing underwriter, if any) addressed to each selling Stockholder and the underwriters, if
any, covering the matters customarily covered in opinions requested in sales of securities
or underwritten offerings and such other matters as may be reasonably requested by such
Stockholders and underwriters;

     (3) obtain “cold comfort” letters and updates thereof from the Company’s independent
certified public accountants addressed to the selling Stockholders, if permissible, and the
underwriters, if any, which letters shall be customary in form and

15

 

shall cover matters of
the type customarily covered in “cold comfort” letters to underwriters in connection with
primary underwritten offerings;

     (4) to the extent requested and customary for the relevant transaction, enter into a
securities sales agreement with the Stockholders providing for, among other things, the
appointment of such representative as agent for the selling Stockholders for the purpose of
soliciting purchases of shares, which agreement shall be customary in form, substance and
scope and shall contain customary representations, warranties and covenants

          The above shall be done at such times as customarily occur in similar registered offerings or
shelf takedowns.

ARTICLE V

INDEMNIFICATION

          5.1 Indemnification by the Company. In the event of any registration under the Securities Act by any Registration Statement,
pursuant to rights granted in this Agreement, of shares held by Stockholders, the Company will hold
harmless Stockholders, each director, officer, employee and Affiliate of the Stockholders and each
other person, if any, who controls any Stockholder within the meaning of the Securities Act,
against any losses, claims, damages, or liabilities (including legal fees and costs of court),
joint or several, to which Stockholders or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages, or liabilities (or any
actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact (i) contained, on its effective date, in any Registration Statement
under which such securities were registered under the Securities Act or any amendment or supplement
to any of the foregoing, or which arise out of or are based upon the omission or alleged omission
to state a material fact required to be stated therein or necessary to make the statements therein
not misleading or (ii) contained in any preliminary prospectus, if used prior to the effective date
of such Registration Statement, or in the final prospectus (as amended or supplemented if the
Company shall have filed with the SEC any amendment or supplement to the final prospectus), or
which arise out of or are based upon the omission or alleged omission (if so used) to state a
material fact required to be stated in such prospectus or necessary to make the statements in such
prospectus not misleading; and will reimburse Stockholders and each such controlling person for any
legal or any other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, or liability; provided, however, that (i)
the Company shall not be liable to any Stockholder or controlling persons in any such case to the
extent that any such loss, claim, damage, or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in such Registration
Statement or such amendment or supplement, in reliance upon and in conformity with information
furnished to the Company through a written instrument duly executed by such Stockholder
specifically for use in the preparation thereof and (ii) with respect to any untrue statement or
omission or alleged untrue statement or omission made in any preliminary prospectus, or prospectus,
the indemnity agreement contained in this Section 5.1 will not inure to the benefit of any
Person to the extent that any such losses, claims, damages or liabilities of such Person result
from the fact that there

16

 

was not sent or given to any Person who purchased Registrable Securities,
at or prior to the written confirmation of the sale of Registrable Securities to such Person, a
copy of the prospectus, as then amended or supplemented (exclusive of material incorporated by
reference), if the Company had previously furnished copies thereof to such Person. In connection
with any underwritten public offering effected under a Registration Statement, the Company will
agree to indemnify the underwriters on terms and conditions customary for such an offering. This
indemnity shall remain in full force and effect regardless of any investigation made by or on
behalf of an indemnified party, and shall survive the transfer (in accordance with the terms
hereof) of such Registrable Securities by the seller thereof.

          5.2 Indemnification by Stockholders. Each Stockholder will, severally and not jointly, indemnify and hold harmless (in the same
manner and to the same extent as set forth in Section 5.1) the Company, each director,
officer, employee and Affiliate of the Company and any person who controls the Company within the
meaning of the Securities Act, (i) with respect to any statement or omission from such Registration
Statement, or any amendment or supplement to it, if such statement or
omission was made in reliance upon and in conformity with information furnished to the Company
through a written instrument duly executed by such Stockholder specifically regarding such
Stockholder for use in the preparation of such Registration Statement or amendment or supplement,
and (ii) with respect to compliance by Stockholders with applicable laws in effecting the sale or
other disposition of the securities covered by such Registration Statement. This indemnity shall
remain in full force and effect, regardless of any investigation made by or on behalf of the
Company, its directors, officers or controlling Persons, and shall survive the transfer of such
Registrable Securities by the seller thereof. Notwithstanding the foregoing, the liability of any
such Stockholder shall not exceed an amount equal to the net proceeds realized by such Stockholder
from the sale of Registrable Securities pursuant to such Registration Statement.

          5.3 Indemnification Procedures. Promptly after receipt by an indemnified party of notice of the commencement of any action
involving a claim referred to in the preceding Sections of this Article V, the indemnified
party will, if a resulting claim is to be made or may be made against and indemnifying party, give
written notice to the indemnifying party of the commencement of the action. The failure of any
indemnified party to give notice shall not relieve the indemnifying party of its obligations in
this Article V, except to the extent that the indemnifying party is actually prejudiced by
the failure to give notice. If any such action is brought against an indemnified party, the
indemnifying party will be entitled to participate in and to assume the defense of the action with
counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying
party to such indemnified party of its election to assume defense of the action, the indemnifying
party will not be liable to such indemnified party for any legal or other expenses incurred by the
latter in connection with the action’s defense. An indemnified party shall have the right to
employ separate counsel in any action or proceeding and participate in the defense thereof, but the
fees and expenses of such counsel shall be at such indemnified party’s expense unless (a) the
employment of such counsel has been specifically authorized in writing by the indemnifying party,
which authorization shall not be unreasonably withheld, (b) the indemnifying party has not assumed
the defense and employed counsel reasonably satisfactory to the indemnified party within 30 days
after notice of any such action or proceeding, or (c) the named parties to any such action or
proceeding (including any impleaded parties) include the indemnified party and the indemnifying
party and the indemnified party shall

17

 

have been advised by such counsel that there may be one or
more legal defenses available to the indemnified party that are different from or additional to
those available to the indemnifying party (in which case the indemnifying party shall not have the
right to assume the defense of such action or proceeding on behalf of the indemnified party), it
being understood, however, that the indemnifying party shall not, in connection with any one such
action or separate but substantially similar or related actions in the same jurisdiction arising
out of the same general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys (in addition to all local counsel which is
necessary, in the good faith opinion of both counsel for the indemnifying party and counsel for the
indemnified party in order to adequately represent the indemnified parties) for the indemnified
party and that all such fees and expenses shall be reimbursed as they are incurred upon written
request and presentation of invoices. Whether or not a defense is assumed by the indemnifying
party, the indemnifying party will not be subject to any liability for any settlement made without
its consent. No indemnifying party will consent to entry of any judgment or enter into any settlement which
(i) does not include as an unconditional term the giving by the claimant or plaintiff, to the
indemnified party, of a release from all liability in respect of such claim or litigation or (ii)
involves the imposition of equitable remedies or the imposition of any non-financial obligations on
the indemnified party.

          5.4 Contribution. If the indemnification required by this Article V from the indemnifying party is
unavailable to or insufficient to hold harmless an indemnified party in respect of any
indemnifiable losses, claims, damages, liabilities, or expenses, then the indemnifying party shall
contribute to the amount paid or payable by the indemnified party as a result of such losses,
claims, damages, liabilities, or expenses in such proportion as is appropriate to reflect (i) the
relative benefit of the indemnifying and indemnified parties and (ii) if the allocation in clause
(i) is not permitted by applicable law, in such proportion as is appropriate to reflect the
relative benefit referred to in clause (i) and also the relative fault of the indemnified and
indemnifying parties, in connection with the actions which resulted in such losses, claims,
damages, liabilities, or expenses, as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and the indemnified party shall be determined by reference
to, among other things, whether any action in question, including any untrue or alleged untrue
statement of a material fact, has been made by, or relates to information supplied by, such
indemnifying party or parties, and the parties’ relative intent, knowledge, access to information,
and opportunity to correct or prevent such action. The amount paid or payable by a party as a
result of the losses, claims, damage, liabilities, and expenses referred to above shall be deemed
to include any legal or other fees or expenses reasonably incurred by such party in connection with
any investigation or proceeding. The Company and Stockholders agree that it would not be just and
equitable if contribution pursuant to this Section 5.4 were determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable
considerations referred to in the prior provisions of this Section 5.4.

          Notwithstanding the provisions of this Section 5.4, no indemnifying or contributing
party shall be required to contribute any amount in excess of the amount by which the total price
at which the securities were offered to the public by such party exceeds the amount of any damages
which such party has otherwise been required to pay by reason of an untrue statement or omission.
No person guilty of fraudulent misrepresentation (within the

18

 

meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such a
fraudulent misrepresentation.

ARTICLE VI

OTHER AGREEMENTS

          6.1 Transfer of Rights.

          (a) This Agreement is personal to the parties hereto and not assignable or transferable;
provided, however, that notwithstanding the foregoing, a Stockholder may assign and
transfer its rights and obligations under this Agreement to any Person in connection with a
transfer or sale of Registrable Securities to such Person, which assignment or transfer shall only
be effective upon receipt by the Company of a duly executed commitment by such transferee to be
bound by the terms of this Agreement in the form attached hereto as Exhibit A, in which
case, this Agreement shall be assigned to, and may be enforced by, such transferee of Registrable
Securities, and such transferee shall thereupon have all of the rights and obligations of its
transferor hereunder. Notwithstanding the foregoing, no transfer of registration rights under this
Agreement shall be permitted if immediately following such transfer the disposition of such
Registrable Securities by the transferee is not restricted under the Securities Act;
provided, however, that if a Stockholder transfers Registrable Securities
representing (i) 5% or more of the outstanding Company Common Stock or (ii) all of the Registrable
Securities acquired by such Stockholder pursuant to the provisions of the Exchange Agreement, and
such transferee executes and delivers to the Company the commitment described in the immediately
preceding sentence, such transferee shall be entitled to enforce the rights initially granted to
the transferor Stockholders in respect of such Registrable Securities on a pro rata basis based on
the amount of Registrable Securities so transferred. Any assignment or transfer in violation of
this agreement shall be null and void.

          (b) In the event the Company engages in a merger or consolidation in which the Registrable
Securities are converted into securities of another company, and which securities are not tradable
without registration under the Securities Act, appropriate arrangements will be made so that the
registration rights provided under this Agreement continue to be provided to Stockholders by the
issuer of such securities. To the extent such new issuer, or any other company acquired by the
Company in a merger or consolidation, was bound by registration rights obligations that would
conflict with the provisions of this Agreement, the Company will, unless the Required Stockholders
otherwise agree, use its best efforts to modify any such “inherited” registration rights
obligations so as not to interfere in any material respects with the rights provided under this
Agreement.

          6.2 Limited Liability. Notwithstanding any other provision of this Agreement, neither the members, general
partners, limited partners or managing directors, or any directors or officers of any members,
general or limited partner, advisory director, nor any future members, general partners, limited
partners, advisory directors, or managing directors, if any, of any Stockholder shall have any
personal liability for performance of any obligation of such Stockholder under this Agreement in
excess of the respective capital contributions of such

19

 

members, general partners, limited partners,
advisory directors or managing directors to such Stockholder.

          6.3 Rule 144. If the Company is subject to the requirements of Section 13, 14 or 15(d) of the Exchange
Act, the Company covenants that it will file any reports required to be filed by it under the
Securities Act and the Exchange Act (or, if the Company is subject to the requirements of Section
13, 14 or 15(d) of the Exchange Act but is not required to file such reports, it will, upon
the request of any Stockholder, make such information available) and it will take such further
action as any Stockholder may reasonably request, so as to enable such Stockholder to sell
Registrable Securities without registration under the Securities Act within the limitation of the
exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may be amended from time
to time, or (b) any similar rule or regulation hereafter adopted by the SEC. Upon the request of
any Stockholder, the Company will deliver to such Stockholder a written statement as to whether it
has complied with such requirements.

          6.4 In-Kind Distributions. If any Stockholder seeks to effectuate an in-kind distribution of all or part of its
Registrable Securities to its direct or indirect equityholders, the Company will work with such
Stockholder and the Company’s transfer agent to facilitate such in-kind distribution in the manner
reasonably requested by such Stockholder.

          6.5 No Inconsistent Agreements.

          (a) Each of the Company, the Dickey Stockholders and the BA Stockholders hereby agree that
each of the Existing Registration Rights Agreements to which it is a party, is hereby terminated,
as of the effective time of this Agreement, and of no further force or effect, and that such
Stockholder is no longer entitled to any registration rights under any such agreement to which it
is or was a party.

          (b) The Company has not entered into, and on or after the date of this Agreement will not
enter into, any agreement that conflicts with the provisions hereof. The rights granted to the
Stockholders hereunder do not in any way conflict with the rights granted to the holders of the
Company’s other issued and outstanding securities under any such agreement after giving effect to
the termination of the Existing Registration Rights Agreements as set forth in Section
6.5(a). The Company shall not, without the prior written consent of the Required Stockholders,
grant to any Persons the right to request the Company to register any equity securities of the
Company, or any securities convertible or exchangeable into or exerciseable for such securities, if
such rights could reasonably be expected, in the good faith determination of the Company’s board of
directors, to conflict with or be in parity with, the rights of the Stockholders granted hereunder.
The granting by the Company of registration rights to a third party shall not be deemed to be in
conflict or parity with the rights of the Stockholders granted hereunder as long as the provisions
of Articles II, III and IV are complied with at all times.

20

 

ARTICLE VII

MISCELLANEOUS

          7.1 Notices. All notices, demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given (i) on the date so given, if delivered personally, (ii)
on the date sent, if delivered by facsimile with telephone confirmation of receipt, (iii) on
the second Business Day following the date deposited in the mail if mailed via an internationally
recognized overnight courier and (iv) on the fourth (4th) Business Day following the
date deposited in the mail if mailed via registered or certified mail, return receipt requested,
postage prepaid, in each case, to the other party at the following addresses:

if to any Stockholder, to the address listed on Annex A, with copies (which
shall not constitute notice) to the respective persons listed on Annex A.

if to the Company, to:

Cumulus Media Inc.

3280 Peachtree Road, N.W.

Suite 2300

Atlanta, Georgia 30305

Attn: Lewis W. Dickey, Jr.

Facsimile: (404) 949-0700

with a copy (which shall not constitute notice) to:

Jones Day

1420 Peachtree Street, N.E.

Suite 800

Atlanta, GA 30309

Attn: Mark L. Hanson, Esq.

Facsimile: (404) 581-8330

          7.2 Section Headings. The article and section headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement. References in this Agreement to
a designated “Article” or “Section” refer to an Article or Section of this Agreement unless
otherwise specifically indicated.

          7.3 Use of Terms. Whenever required by the context, any pronoun used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and
verbs shall include the plural and vice versa. Whenever the words “include”, “included” or
“including” are used in this Agreement, they are deemed to be followed by the words “without
limitation”. Reference to any agreement, document or instrument means such agreement, document or
instrument as amended or otherwise modified from time to time in accordance with the terms thereof.
When used in this Agreement, words such as “herein”, “hereinafter”, “hereof”, “hereto”, and
“hereunder” shall refer to this Agreement as a whole, unless the context clearly requires
otherwise. The use of the words “or,” “either” and

21

 

“any” shall not be exclusive. The parties
hereto have participated jointly in the negotiation and drafting of this Agreement. In the event
an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as
if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of
any of the provisions of this Agreement.

     7.4 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York.

     7.5 Consent to Jurisdiction and Service of Process. The parties to this Agreement hereby agree to submit to the jurisdiction of the courts of
the State of New York, the courts of the United States of America for the Southern District of New
York, and appellate courts from any thereof in any action or proceeding arising out of or relating
to this Agreement.

     7.6 WAIVER OF JURY TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (II) IT UNDERSTANDS AND
HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (III) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (IV)
IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 7.6.

     7.7 Amendments; Termination. This Agreement may be amended or modified only by an instrument in writing executed by the
Company and the Required Stockholders; provided, however, that if any such
amendment or modification would adversely affect the registration rights of the Sponsor
Stockholders herein in any material respect, such amendment or modification shall also require, in
addition to the consents required above, written consent of each of the following: (i) the holders
of at least a majority of the Registrable Securities held by the Bain Stockholders and (ii) the
holders of at least a majority of the Registrable Securities held by the THL Stockholders. Any
such amendment and modification will apply to all Stockholders equally, without distinguishing
between them. This Agreement will terminate as to any Stockholder when it no longer holds any
Registrable Securities. This Agreement will no longer be applicable to Registrable Securities that
are registered in a public offering on NASDAQ or any other U.S. securities exchange on which
Registrable Securities issued by the Company are then so qualified or listed.

     7.8 Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties with
respect to the transactions contemplated hereby and thereby. The registration rights granted under
this Agreement supersede any registration, qualification or

22

 

similar rights with respect to any of
the shares of Common Stock granted under any other agreement to the parties hereto, including the
Existing Registration Rights Agreements, and any of such preexisting registration rights are hereby
terminated.

          7.9 Severability. The invalidity or unenforceability of any specific provision of this Agreement shall not
invalidate or render unenforceable any of its other provisions. Any provision of this Agreement
held invalid or unenforceable shall be deemed reformed, if practicable, to the extent necessary to
render it valid and enforceable and to the extent permitted by law and consistent with the intent
of the parties to this Agreement.

          7.10 Counterparts. This Agreement may be executed in multiple counterparts, including by means of facsimile,
each of which shall be deemed an original, but all of which together shall constitute the same
instrument.

[Remainder of page intentionally blank]

23

 

     IN WITNESS WHEREOF, the parties have duly executed this Agreement effective as of the
date first written above.

	 	 	 	 	 
	 	CUMULUS MEDIA INC.

 	 
	 	By:  	/s/ Lewis W. Dickey, Jr.
 	 
	 	 	Name:  	Lewis W. Dickey, Jr. 	 
	 	 	Title:  	Chairman, President & Chief Executive Officer 	 
	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	SPONSOR STOCKHOLDERS

Blackstone Stockholders

BLACKSTONE FC COMMUNICATIONS PARTNERS L.P.
 	 
	 	By:  	BCMA FCC L.L.C., its general partner 	 
	 	 	 
	 	By:  	/s/ Stephen A. Schwarzman 	 
	 	 	Name:  	Stephen A. Schwarzman 	 
	 	 	Title:  	Founding Member 	 
	 
	 	BLACKSTONE FC CAPITAL PARTNERS IV L.P.
 	 
	 	By:  	BMA IV FCC L.L.C., its general partner 	 
	 	 	 
	 	By:  	/s/ Stephen A. Schwarzman 	 
	 	 	Name:  	Stephen A. Schwarzman 	 
	 	 	Title:  	Founding Member 	 
	 
	 	BLACKSTONE FC CAPITAL PARTNERS IV-A L.P.
 	 
	 	By:  	BMA IV FCC L.L.C., its general partner 	 
	 	 	 
	 	By:  	/s/ Stephen A. Schwarzman 	 
	 	 	Name:  	Stephen A. Schwarzman 	 
	 	 	Title:  	Founding Member 	 
	 
	 	BLACKSTONE FAMILY FCC L.L.C.
 	 
	 	By:  	BMA IV FCC L.L.C., its managing member 	 
	 	 	 
	 	By:  	/s/ Stephen A. Schwarzman 	 
	 	 	Name:  	Stephen A. Schwarzman 	 
	 	 	Title:  	Founding Member 	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	BLACKSTONE PARTICIPATION FCC L.L.C
 	 
	 	By:  	BMA IV FCC L.L.C., its managing member 	 
	 	 	 
	 	By:  	/s/ Stephen A. Schwarzman 	 
	 	 	Name:  	Stephen A. Schwarzman 	 
	 	 	Title:  	Founding Member 	 
	 
	 	BLACKSTONE COMMUNICATIONS FCC L.L.C.
 	 
	 	By:  	BCMA FCC L.L.C., its managing member 	 
	 	 	 
	 	By:  	/s/ Stephen A. Schwarzman 	 
	 	 	Name:  	Stephen A. Schwarzman 	 
	 	 	Title:  	Founding Member 	 
	 
	 	Notices:

If to any of the Blackstone Stockholders:

c/o The Blackstone Group L.P.

345 Park Avenue

New York, NY 10154

Attn: David M. Tolley

Facsimile: (212) 583-5710

With a copy (which shall not constitute notice) to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attn: Wilson S. Neely, Esq.

Facsimile: (212) 455-2502

 	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	Bain Stockholders

BAIN CAPITAL (SQ) VIII, L.P.

 	 
	 	By:  	Bain Capital Partners (SQ) VIII, L.P., its general partner 	 
	 	 	 
	 	By:  	Bain Capital Investors, LLC, its general partner 	 
	 	 	 
	 	By:  	/s/ Ian Loring 	 
	 	 	Name:  	Ian Loring 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BCIP ASSOCIATES III, LLC
 	 
	 	By:  	BCIP Associates III, its manager 	 
	 	 	 
	 	By:  	Bain Capital Investors, LLC, its managing partner 	 
	 	 	 
	 	By:  	/s/ Ian Loring 	 
	 	 	Name:  	Ian Loring 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BCIP ASSOCIATES III-B, LLC
 	 
	 	By:  	BCIP Associates III-B, its manager 	 
	 	 	 
	 	By:  	Bain Capital Investors, LLC, its managing partner 	 
	 	 	 
	 	By:  	/s/ Ian Loring 	 
	 	 	Name:  	Ian Loring 	 
	 	 	Title:  	Managing Director 	 
	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	BCIP T ASSOCIATES III, LLC

 	 
	 	By:  	BCIP Associates III, its manager 	 
	 	 	 
	 	By:  	Bain Capital Investors, LLC, its managing partner 	 
	 	 	 
	 	By:  	/s/ Ian Loring 	 
	 	 	Name:  	Ian Loring 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BCIP T ASSOCIATES III-B, LLC
 	 
	 	By:  	BCIP Associates III-B, its manager 	 
	 	 	 
	 	By:  	Bain Capital Investors, LLC, its managing partner 	 
	 	 	 
	 	By:  	/s/ Ian Loring 	 
	 	 	Name:  	Ian Loring 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BCIP ASSOCIATES-G
 	 
	 	By:  	Bain Capital Investors, LLC, its managing partner 	 
	 	 	 
	 	By:  	/s/ Ian Loring 	 
	 	 	Name:  	Ian Loring 	 
	 	 	Title:  	Managing Director 	 
	 
	 	Notices:

If to any of the Bain Stockholders:

c/o Bain Capital Partners LLC

111 Huntington Avenue

Boston, MA 02199

Attn: Ian Loring

Facsimile: (617) 516-2010

with copies (which shall not constitute notice) to: 	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199-3600

Attn: William M. Shields, Esq.

Facsimile: (617) 235-0509
 	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	THL Stockholders

THOMAS H. LEE EQUITY FUND V, L.P.

 	 
	 	By:  	THL Equity Advisors V, LLC, its general partner 	 
	 	 	 
	 	By:  	Thomas H. Lee Partners, L.P., its sole member 	 
	 	 	 
	 	By:  	Thomas H. Lee Advisors, LLC, its general partner 	 
	 	 	 
	 	By:  	/s/ Soren Oberg
 	 
	 	 	Name:  	Soren Oberg 	 
	 	 	Title:  	Managing Director 	 
	 
	 	THOMAS H. LEE PARALLEL FUND V, L.P.
 	 
	 	By:  	THL Equity Advisors V, LLC, its general partner 	 
	 	 	 
	 	By:  	Thomas H. Lee Partners, L.P., its sole member 	 
	 	 	 
	 	By:  	Thomas H. Lee Advisors, LLC, its general partner 	 
	 	 	 
	 	By:  	/s/ Soren Oberg 	 
	 	 	Name:  	Soren Oberg 	 
	 	 	Title:  	Managing Director 	 
	 
	 	THOMAS H. LEE EQUITY (CAYMAN) FUND V, L.P.
 	 
	 	By:  	THL Equity Advisors V, LLC, its general partner 	 
	 	 	 
	 	By:  	Thomas H. Lee Partners, L.P., its sole member 	 
	 	 	 
	 	By:  	Thomas H. Lee Advisors, LLC, its general partner 	 
	 	 	 
	 	By:  	/s/ Soren Oberg 	 
	 	 	Name:  	Soren Oberg 	 
	 	 	Title:  	Managing Director 	 
	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	THOMAS H. LEE INVESTORS LIMITED PARTNERSHIP
 	 
	 	By:  	THL Investment Management Corp., its General Partner 	 
	 	 	 
	 	By:  	/s/ Soren Oberg 	 
	 	 	Name:  	Soren Oberg 	 
	 	 	Title:  	Managing Director 	 
	 
	 	PUTNAM INVESTMENTS HOLDINGS, LLC
 	 
	 	By:  	Putnam Investments, LLC, its Managing Member 	 
	 	 	 
	 	By:  	Thomas H. Lee Advisors, LLC, attorney-in-fact 	 
	 	 	 
	 	By:  	/s/ Soren Oberg 	 
	 	 	Name:  	Soren Oberg 	 
	 	 	Title:  	Managing Director 	 
	 
	 	PUTNAM INVESTMENTS EMPLOYEES’ SECURITIES COMPANY I, LLC
 	 
	 	By:  	Putnam Investments Holdings, LLC, its Managing Member 	 
	 	 	 
	 	By:  	Putnam Investments, LLC its Managing Member 	 
	 	 	 
	 	By:  	Thomas H. Lee Advisors, LLC, Attorney-in-Fact 	 
	 	 	 
	 	By:  	/s/ Soren Oberg 	 
	 	 	Name:  	Soren Oberg 	 
	 	 	Title:  	Managing Director 	 
	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	PUTNAM INVESTMENTS EMPLOYEES’ SECURITIES COMPANY II, LLC
 	 
	 	By:  	Putnam Investments Holdings, LLC, its Managing Member 	 
	 	 	 
	 	By:  	Putnam Investments, LLC its Managing Member 	 
	 	 	 
	 	By:  	Thomas H. Lee Advisors, LLC, Attorney-in-Fact 	 
	 	 	 
	 	By:  	/s/ Soren Oberg 	 
	 	 	Name:  	Soren Oberg 	 
	 	 	Title:  	Managing Director 	 
	 
	 	Notices:

If to any of the THL Stockholders:

c/o Thomas H. Lee Partners, L.P.

100 Federal Street

35th Floor

Boston, MA 02110

Attn: Soren Oberg

Facsimile: (617) 227-3514 	 
	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	DICKEY STOCKHOLDERS
 	 
	 	/s/ Lewis W. Dickey, Jr. 	 
	 	Lewis W. Dickey, Jr. 	 
	 	 	 
	 
	 	 	 
	 	/s/ John W. Dickey
 	 
	 	John W. Dickey 	 
	 	 	 
	 
	 	 	 
	 	/s/ David W. Dickey
 	 
	 	David W. Dickey 	 
	 	 	 
	 
	 	 	 
	 	/s/ Michael W. Dickey
 	 
	 	Michael W. Dickey 	 
	 	 	 
	 
	 	 	 
	 	/s/ Lewis W. Dickey, Sr.
 	 
	 	Lewis W. Dickey, Sr. 	 
	 	 	 
	 
	 	DBBC, L.L.C.

 	 
	 	By:  	/s/ Lewis W. Dickey, Jr.
 	 
	 	 	Name:  	Lewis W. Dickey, Jr. 	 
	 	 	Title:  	 	 
	 
	 	Notices:

If to any of the Dickey Stockholders:

c/o Cumulus Media Inc.

3280 Peachtree Road, N.W.

Suite 2300

Atlanta, Georgia 30305

Attn: Lewis W. Dickey, Jr.

Facsimile: (404) 949-0700 	 
	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	With a copy (which shall not constitute notice) to:

Jones Day

1420 Peachtree Street, N.E.

Atlanta, GA 30309

Attn: Mark L. Hanson, Esq.

Facsimile: (404) 581-8330 	 
	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	BA STOCKHOLDERS

BA CAPITAL COMPANY, L.P.

 	 
	 	By:  	RE SBIC Management, LLC, its general partner 	 
	 	 	 
	 	By:  	RE Equity Management, L.P., its sole member 	 
	 	 	 
	 	By:  	RE Equity Management GP, LLC, its general partner 	 
	 	 	 
	 	By:  	/s/ Edward A. Balogh 	 
	 	 	Name:  	Edward A. Balogh 	 
	 	 	Title:  	Chief Operating Officer 	 
	 
	 	BANC OF AMERICA CAPITAL INVESTORS SBIC, L.P.
 	 
	 	By:  	Ridgemont Capital Management SBIC, LLC, its general partner 	 
	 	 	 
	 	By:  	Ridgemont Capital Management, L.P., its sole member 	 
	 	 	 
	 	By:  	REP I GP, LLC, its general partner 	 
	 	 	 
	 	By:  	/s/ Robert H. Sheridan III 	 
	 	 	Name:  	Robert H. Sheridan III 	 
	 	 	Title:  	Member 	 
	 
	 	Notices to BA Stockholders:

c/o Ridgemont Equity Partners,

Attn: Robert H. (Trey) Sheridan, III

150 N. College St, Suite 2500

Fax 704-944-0973 	 
	 

[Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	With a copy (which shall not constitute notice) to:

T. Richard Giovannelli

K&L Gates LLP

Hearst Tower

214 North Tryon Street, 47th Floor

Charlotte, NC 28202

Direct dial: (704) 331-7484

Direct fax: (704) 353-3184
 	 
	 

[Registration Rights Agreement]

 

 

EXHIBIT A

FORM OF JOINDER TO

REGISTRATION RIGHTS AGREEMENT

          This JOINDER to the Registration Rights Agreement, dated as of __________, 2011 (the
“Registration Rights Agreement”), of Cumulus Media Inc., a Delaware corporation (the
“Company”), is executed on behalf of the undersigned (“Stockholder”) effective as
of the date set forth on the signature page below, with reference to the following facts:

          WHEREAS, capitalized terms used herein but not otherwise defined shall have the meanings set
forth in the Registration Rights Agreement; and

          WHEREAS, Stockholder has acquired Registrable Securities [pursuant to the terms of the Radio
Holdings Warrant Agreement Amendment][, is the transferee of Registrable Securities from a
Stockholder (in this instance, as defined in the Registration Rights Agreement) and in connection
with such transfer, the registration rights of such Stockholder (in this instance, as defined in
the Registration Rights Agreement) are being assigned to Stockholder in accordance with the terms
of Section 6.1 of the Registration Rights Agreement]1, and the Registration
Rights Agreement requires Stockholder to become a party thereto if Stockholder desires to avail
itself of the registration rights therein, and Stockholder agrees to do so in accordance with the
terms thereof;

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
undersigned hereby agrees as follows:

          1. Agreement to be Bound. Stockholder hereby agrees that upon execution of this
Joinder, Stockholder shall become a party to the Registration Rights Agreement as a “Stockholder”
and shall be fully bound by, and subject to, all of the covenants, terms and conditions of the
Registration Rights Agreement applicable to Stockholder and the Registrable Securities held by
Stockholder as though an original party thereto.

          2. Counterparts. This Joinder may be executed in separate counterparts each of which
shall be an original and all of which taken together shall constitute one and the same agreement.

          3. Notices. For purposes of Section 7.1 of the Registration Rights Agreement,
all notices, demands or other communications to Stockholder shall be directed to Stockholder’s
address set forth below Stockholder’s signature below.

[Signature Page Follows]

 

			
	1	 	[Note: formulation will vary depending on
which type of Stockholder enters into this Joinder]

 

 

          IN WITNESS WHEREOF, Stockholder has executed this Joinder effective as of the date set forth
below.

	 	 	 	 	 
	 	STOCKHOLDER:
 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	ADDRESS: 	 
	 	
 	 
	 	
 	 
	 	
 	 
	 	
 	 
	 
	 	Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}]]