Document:

exv10w3

Exhibit 10.3

Execution Copy

July 29, 2008

Messrs.

L. Lowry Mays

Mark P. Mays, and

Randall T. Mays

200 East Basse Road

San Antonio, Texas 78209

          Re: Side Letter Agreement

Dear Lowry/Mark/Randall:

     This letter agreement relates to the Stockholders Agreement of even date herewith by and among
CC Media Holdings, Inc., BT Triple Crown Merger Co., Inc., Clear Channel Capital IV, LLC, Clear
Channel Capital V, L.P., L. Lowry Mays, Mark P. Mays, Randall T. Mays and the other parties thereto
(the “ Stockholders Agreement ”).

     The purpose of this letter agreement is to supplement the agreements of the undersigned
parties that are contained in the Stockholders Agreement. Accordingly, the Company, Capital IV,
Capital V, L. Lowry Mays, Mark P. Mays, Randall T. Mays and the other undersigned Executive
Stockholders hereby agree, on behalf of themselves and their respective Permitted Transferees,
heirs, representatives, successors and permitted assigns, as follows:

     1. Whenever the term “Minimum Executive Holding Period” is used in the Stockholders Agreement
in relation to L. Lowry Mays, Mark P. Mays or Randall T. Mays or any of their respective Permitted
Transferees, that term will be deemed to mean the period commencing on the Closing Date and ending
on the date that is the earlier of (a) the seventh anniversary of the Closing Date and (b) the
third anniversary of the closing of the Qualified Public Offering.

     2. Each of L. Lowry Mays, Mark P. Mays and Randall T. Mays will be treated as a “Qualifying
Holder” for purposes of the Stockholders Agreement with respect to any period of time during which
such Executive establishes to the reasonable satisfaction of the Company that such Executive is an
“affiliate” of the Company (as that term is used in Rule 144), even if such Executive does not then
hold Shares that represent at least 1% of the then outstanding shares of Common Stock and therefore
would not otherwise then qualify as a “Qualifying Holder” for purposes of the Stockholders
Agreement.

     3. Section 7 of the Stockholders Agreement will not apply to L. Lowry Mays, Mark P. Mays or
Randall T. Mays or any of their respective Permitted Transferees, including the respective
undersigned Initial Executive Designee associated with such Executive. Instead, the agreements set
forth in Exhibit A to this letter agreement, together with the capitalized terms used
therein that are defined or referred to in Exhibit B to this letter agreement, will apply
to each such Executive and each of such Executive’s Permitted Transferees as fully as though such
agreements were contained in the Stockholders Agreement as Section 7 thereof and such capitalized
terms were included with the terms defined or referred to in Section 12.2 thereof. Unless otherwise
specified, references to Sections in this letter agreement or in either of the

 

 

Exhibits hereto are references to sections of the Stockholders Agreement (which, for purposes of
this sentence, will be deemed to contain, in Section 7 thereof, the agreements set forth in
Exhibit A to this letter agreement and, in Section 12.2 thereof, the capitalized terms used
in such Exhibit or defined in Exhibit B to this letter agreement).

     4. This letter agreement applies only to the undersigned parties hereto and does not apply to,
and is not to be construed as applying to, any other current or any future stockholder of the
Company (whether as an amendment or modification of the Stockholders Agreement under Section 11.2
thereof, or otherwise), except for the respective Permitted Transferees of the undersigned
Investors and Executive Stockholders that become party to the Stockholders Agreement in accordance
with its terms.

     5. Except to the extent supplemented by this letter agreement or supplemented or otherwise
modified by any subsequent written agreement of the undersigned parties hereto, the terms of the
Stockholders Agreement will apply to each of the undersigned parties to this letter agreement as
set forth therein. Capitalized terms that are used in this letter agreement and/or in any Exhibit
to this letter agreement, but that are not defined in this letter agreement or in either of those
Exhibits, have the respective meanings given to those terms in the Stockholders Agreement as in
effect on the date hereof.

     6. This letter agreement may not be orally amended, modified, extended or terminated, nor
shall any purported oral waiver of any of its provisions be effective. This letter agreement may be
amended, modified, extended or terminated, and the provisions hereof may be waived, but only by an
agreement in writing signed by the Company, a Requisite Capital IV Majority and each of the
undersigned Executives who would be affected thereby. No amendment, modification, extension or
termination of Section 7 of the Stockholders Agreement, or any waiver of any of the provisions
thereof, will apply to any of the undersigned Executives, each of whose rights and obligations with
respect to the subject matters of that Section are contained entirely in this letter agreement and
the Exhibits hereto, each as amended, modified, extended, terminated or waived from time to time in
accordance with this paragraph.

     7. This letter agreement is being entered into concurrently with the Stockholders Agreement
and, like the Stockholders Agreement, will not become effective until the consummation of the
Merger. If the Stockholders Agreement is terminated in accordance with its terms, this letter
agreement will terminate automatically. If any of the undersigned parties withdraws from the
Stockholders Agreement in accordance with its terms, that party will be deemed to have
simultaneously withdrawn from this letter agreement without the need for any further action on part
of that party or any of the other undersigned parties. No termination (in whole or in part) of, or
withdrawal from, this letter agreement shall relieve any of the undersigned parties of liability
for any breach by that party prior to such termination or withdrawal.

     8. No provision in this letter agreement will give, or be construed to give, any legal or
equitable rights hereunder to any Person other than the undersigned parties hereto and their
respective heirs, representatives, successors and permitted assigns.

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     9. Sections 12.1, 13.1, 13.2, 13.4, 13.5, 13.6, 14.1, 14.2 and 14.3 of the Stockholders
Agreement are hereby made part of this letter agreement as if each of those sections of the
Stockholders Agreement were set forth herein, mutatis mutandis.

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     If you agree with us that this letter agreement correctly reflects the terms of the agreements
that the Company, Capital IV, Capital V, L. Lowry Mays, Mark P. Mays, Randall T. Mays and the
Initial Executive Designees intend to have supplement their agreements in the Stockholders
Agreement, then please kindly acknowledge the same by signing in the space provided below.

	 	 	 	 	 
	 	Sincerely,

CC MEDIA HOLDINGS, INC.

 	 
	 	By:  	/s/ Scott M. Sperling
 	 
	 	 	Name:  	Scott M. Sperling 	 
	 	 	Title:  	President 	 
	 
	 	CLEAR CHANNEL CAPITAL IV, LLC

 	 
	 	By:  	/s/ Edward J. Han
 	 
	 	 	Name:  	Edward J. Han 	 
	 	 	Title:  	Vice President 	 
	 
	 	CLEAR CHANNEL CAPITAL V, L.P.

 	 
	 	By:  	CC Capital V Manager, LLC, its general partner

 	 
	 	 	 
	 	By:  	/s/ Edward J. Han
 	 
	 	 	Name:  	Edward J. Han 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO LETTER AGREEMENT]

 

 

MAYS EXECUTIVES

	 	 	 	 	 
	 	L. LOWRY MAYS

 	 
	 	/s/ L. Lowry Mays
 	 
	 	 	 
	 	 	 
	 
	 	MARK P. MAYS

 	 
	 	/s/ Mark P. Mays
 	 
	 	 	 
	 	 	 
	 
	 	RANDALL T. MAYS

 	 
	 	/s/ Randall T. Mays
 	 
	 	 	 
	 	 	 
	 

[SIGNATURE PAGE TO LETTER AGREEMENT]

 

 

	 	 	 	 	 
	 	LLM PARTNERS, LTD.

 	 
	 	By:  	LL MAYS MANAGEMENT, LLC
 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/ L. Lowry Mays
 	 
	 	 	Name:  	L. Lowry Mays 	 
	 	 	Title:  	Authorized Person 	 
	 
	 	MPM PARTNERS, LTD.

 	 
	 	By:  	MP MAYS MANAGEMENT, LLC
 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/ Mark P. Mays
 	 
	 	 	Name:  	Mark P. Mays 	 
	 	 	Title:  	Authorized Person 	 
	 
	 	RTM PARTNERS, LTD.

 	 
	 	By:  	RT MAYS MANAGEMENT, LLC
 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/ Randall T. Mays
 	 
	 	 	Name:  	Randall T. Mays 	 
	 	 	Title:  	Authorized Person 	 
	 

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Exhibit A

	7.	 	COMPANY CALL OPTION AND EXECUTIVE SALE RIGHTS.

     7.1. Call Option Upon Termination. Upon any termination of a Mays Executive’s
employment with the Company or any of its subsidiaries, the Company will have the right to purchase
Executive Shares held by such Mays Executive or any of his Executive Designees or originally issued
to such Mays Executive or any of his Executive Designees but held by one or more Persons that
acquired such Shares as Permitted Transferees of such Mays Executive or any of such Executive
Designees (as to a given Mays Executive, such Mays Executive and all such other Persons,
collectively, such Mays Executive’s “Call Group”) to the extent, and on the terms and
conditions, specified in this Section 7.1 (each such right, a “Call Option”).

     7.1.1. Termination Events; Resulting Call Rights.

     (a) Termination due to Death or Disability. If such termination is the
result of the death or Disability of such Mays Executive, then the Company will have
the right to purchase all or any portion of the New Option Shares held by such Mays
Executive’s Call Group at a per Share price equal to the Fair Market Value thereof.

     (b) Termination by the Company other than for Cause or by a Mays Executive
for Good Reason. If such termination is the result of (i) a termination by the
Company or any of its subsidiaries other than for Cause (or Disability) or (ii) a
termination by such Mays Executive for Good Reason, then, in either such event, the
Company will have the right to purchase all or any portion of the New Option Shares
held by such Mays Executive’s Call Group at a per Share price equal to the Fair
Market Value thereof.

     (c) Termination for Cause. If such termination is the result of a
termination by the Company or any of its subsidiaries for Cause, then the Company
will have the right to purchase all or any portion of (i) the Vested Restricted
Shares, Purchased Shares and Rollover Option Shares held by such Mays Executive’s
Call Group, in each case at a per Share price equal to the respective Fair Market
Value thereof, and (ii) the New Option Shares held by such Call Group at a per Share
price equal to the lesser of the Fair Market Value thereof and the Cost thereof.

     (d) Termination by a Mays Executive other than for Good Reason. If
such termination is the result of a termination by such Mays Executive other than
for Good Reason, then the Company will have the right to purchase all or any portion
of (i) the Purchased Shares and Rollover Option Shares held by such Mays Executive’s
Call Group, in each case at a per Share price equal to the respective Fair Market
Value thereof, and (ii) the New Option Shares held by such Call Group at a per Share
price equal to the lesser of the Fair Market Value thereof and the Cost thereof.

 

 

     (e) Retirement. If such termination is the result of Retirement by
such Mays Executive, then the Company will have the right to purchase all or any
portion of the New Option Shares held by such Mays Executive’s Call Group at a per
Share price equal to the Fair Market Value thereof.

     7.1.2. Notices. Any Call Option may be exercised by delivery of written notice
thereof (the “Call Notice”) to all members of the applicable Call Group from whom
the Company has elected to purchase Shares by no later than the Call Notice Due Date. The
Call Notice shall identify the Shares with respect to which the Company has elected to
exercise the Call Option and the purchase price therefor (as calculated above under the
applicable provision of Section 7.1.1). For purposes of this Section 7, the “Call
Notice Due Date” shall mean the date that is six months after the effective date of the
applicable termination of employment; provided that, as to any Option Shares first
acquired by the applicable Mays Executive or any other member of such Mays Executive’s Call
Group on or after such date, the Call Notice Due Date shall be extended until the date that
is one month after the date such Option Shares were first acquired by such Mays Executive or
other member of such Call Group (such date of acquisition, the “Option Exercise
Date”); provided, further, that in the case of a termination of
employment of a type described in Section 7.1.1(b) or 7.1.1(e): (i) a Call Option may not be
exercised as to any Option Shares, until the date that is six months and one day after the
Option Exercise Date with respect to such Option Shares; and (ii) the “Call Notice Due
Date” shall mean the date that is no later than the later of (x) the date that is six
months after the effective date of such termination of employment and (y) the date that is
nine months after the last Option Exercise Date (in the case of any such Option Shares).

     7.1.3. Determination Date. The purchase price for any Shares to be purchased
pursuant to a Call Option shall be determined as of the date the applicable Call Notice is
delivered.

     7.1.4. No Modification of Vesting, Etc.. The rights of the Company and the
Investors to purchase Executive Shares under this Section 7.1 are in addition to, and do not
modify, any vesting provisions or other terms of any restricted stock, stock option,
subscription or other agreement or plan applicable to any Executive Shares.

     7.1.5. Payments. Any payment required to be made by the Company or the
Investors to a Call Group under any provision of this Section 7.1 shall be made in cash.

     7.1.6. Closing.

     (a) Except as otherwise agreed in writing by the Company and the Mays Executive
whose Call Group’s Executive Shares are the subject of a Call Notice, the closing of
any purchase and sale of Executive Shares pursuant to this Section 7.1 shall take
place at the principal executive office of the Company as soon as reasonably
practicable, and in any event not later than the date that is the later of (i) 15
business days after the delivery of the applicable Call Notice and (ii) five
business days after all determinations of Fair Market Value by a
nationally-recognized investment bank that are required under clause (b) of the

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definition of “Fair Market Value” (any such determination, an
“Appraisal”) in connection with such purchase and sale have become final;
provided that such closing may be extended at the election of a Requisite
Capital IV Majority and the Company solely to the extent necessary to obtain any
applicable governmental or regulatory approval. If the closing of any purchase and
sale of Executive Shares is extended by a Requisite Capital IV Majority pursuant to
Section 7.1.7 or the preceding proviso clause, in either case for more than 30 days
after the delivery of the Call Notice for such Executive Shares, then the aggregate
purchase price therefor shall accrue interest from and after such 30th day at a per
annum interest rate equal to the prime rate as reported by JPMorgan Chase at such
time through the date payment is finally made, such rate of interest to increase by
100 basis points on each three-month anniversary of such 30th day; provided,
however, that in no event will the per annum rate of interest in effect
under this Section 7.1.6(a) exceed 12%. In a case where an Appraisal is conducted
in connection with a purchase and sale of Executive Shares under this Section 7.1,
(A) interest shall begin to accrue under the preceding sentence only if the closing
of such purchase and sale has not occurred within 45 days after the engagement of
the investment bank conducting such Appraisal (in which case all references in the
preceding sentence to such “30th day” will be deemed to be replaced with a reference
to the 45th day after such engagement); and (B) no interest shall be due if the Fair
Market Value of such Executive Shares, as determined by the investment bank
conducting such Appraisal, is not more than 110% of the determination of the Fair
Market Value of such Executive Shares by the Board set forth in the Call Notice for
such Executive Shares. In any event, except as otherwise agreed in writing by the
Company and the Mays Executive whose Call Group’s Executive Shares are the subject
thereof, the closing of any purchase and sale of Executive Shares under this Section
7.1 that has been extended or has otherwise been delayed for more than 30 days after
the delivery of the Call Notice for such Executive Shares shall take place as soon
as practicable (and in any event within five business days) after the circumstances
giving rise to such extension or delay no longer exist.

     (b) At the closing of any purchase and sale of Executive Shares pursuant to
this Section 7.1, the holders of Shares to be sold shall deliver to the Company
and/or the Investors and any applicable Investor Designees a certificate or
certificates representing the Shares to be purchased by the Company and/or the
Investors and any applicable Investor Designees duly endorsed, or with stock (or
equivalent) powers duly endorsed, for transfer with signature guaranteed, free and
clear of any Adverse Claim, with all necessary stock (or equivalent) transfer tax
stamps affixed, and the Company and/or the Investors and Investor Designees shall
pay to such holder by certified or bank check or wire transfer of immediately
available funds the purchase price of the Shares being purchased by the Company
and/or the Investors, less any taxes required to be withheld in respect of such
purchase and sale under applicable law. The receipt of consideration by any Person
selling Shares pursuant to this Section 7.1 shall be deemed a representation and
warranty by such Person that (a) such Person has full right, title and interest in
and to such Shares, (b) such Person has all necessary power and authority and has
taken all necessary action to sell such Shares as

A-3

 

contemplated and (c) such Shares are free and clear of any and all Adverse
Claims.

     7.1.7. Investor Call Option. If the Company elects not to purchase pursuant to
7.1 all Executive Shares that are held by a Call Group, then the Company shall notify each
Investor and each Investor may purchase, or elect to have one or more Investor Designees
purchase, such Investor’s Ratable Share of the remaining Shares for the same purchase
price(s) and on the same terms and conditions as the Company would be entitled to purchase
such Shares under this Section 7.1; provided, however, that, notwithstanding
the provisions of Section 7.1.6(a), if Investors or Investor Designees elect to take part in
the purchase of such remaining Shares, then a Requisite Capital IV Majority may extend the
closing date for up to 15 business days solely to the extent necessary to obtain equity
financing for such purchase. Without limiting the generality of the foregoing sentence, any
exercise of such right by one or more Investors (or their Investor Designees) shall be made
by notice to the applicable Call Group within the applicable time period set forth in
Section 7.1.2. In addition, if the closing of any purchase and sale of Executive Shares by
the Company pursuant to Section 7.1 is extended in accordance with Section 7.1.6(a) to
obtain any applicable governmental or regulatory approval, then the Company may assign to
the Investors the right to purchase (which the Investors may assign to their respective
Investor Designees) their respective Ratable Shares of the Executive Shares that are the
subject of such purchase and sale for the same purchase price (including interest, if
applicable) and on the same terms and conditions as the Company would be entitled to
purchase such Shares under this Section 7.1. If any Investor agrees to forego its full
Ratable Share of any Shares that it is entitled to purchase under this Section 7.1.7, the
remainder shall be made available to the other Investors in proportion to their respective
Ratable Shares (unless the Investors otherwise agree). The Company or any Investor or
Investor Designee purchasing Executive Shares pursuant to this Section 7.1.7 may, at any
time following the purchase and sale thereof, require that the Executive Shares being
purchased by such Investor or Investor Designee be converted by the Company into shares of
Class C Stock in accordance with the Company’s certificate of incorporation.

     7.2. Certain Public Sale Rights. Upon any termination of a Mays Executive’s
employment with the Company or any its subsidiaries, such Mays Executive, each of his Executive
Designees and each Person holding Executive Shares who acquired them as a Permitted Transferee of
such Mays Executive or any of such Executive Designees (as to a given Mays Executive, such Mays
Executive and all such other Persons, collectively, such Mays Executive’s “Sale Group”)
will have the right, subject to Section 7.2.2 and Sections 3.3, 3.5, 3.6 and 3.7, to sell shares of
Common Stock to the public pursuant to Rule 144, to the extent, and on the terms and conditions,
specified in this Section 7.2 (any such sale, a “Permitted Public Transfer”),
notwithstanding that such a Transfer might not otherwise then be permitted by Section 3.1.4.
Executive Shares sold in Permitted Public Transfers pursuant to this Section 7.2 shall conclusively
be deemed thereafter not to be Shares under this Agreement.

     7.2.1. Termination Events; Resulting Public Sale Rights.

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     (a) Termination due to Death or Disability. If such termination is the
result of the death or Disability of such Mays Executive, then, subject to Section
7.2.2, at any time during the respective Permitted Sale Period applicable to such
Executive Shares, each member of such Mays Executive’s Sale Group will have the
right to sell in one or more Permitted Public Transfers all or any portion of the
Vested Restricted Shares, Purchased Shares, Rollover Option Shares and New Option
Shares held by such member (other than any New Option Shares that are then subject
to a valid Call Notice under Section 7.1.2).

     (b) Termination by Company other than for Cause or Termination by Mays
Executive for Good Reason. If such termination is the result of (i) a
termination by the Company or any of its subsidiaries other than for Cause or (ii) a
termination by such Mays Executive for Good Reason, then, in either such event,
subject to Section 7.2.2, at any time during the respective Permitted Sale Period
applicable to such Executive Shares, each member of such Mays Executive’s Sale Group
will have the right to sell in one or more Permitted Public Transfers all or any
portion of the Vested Restricted Shares, Purchased Shares and Rollover Option Shares
held by such member.

     (c) Retirement. If such termination is the result of the Retirement of
such Mays Executive, then, subject to Section 7.2.2, at any time during the
Permitted Sale Period applicable to such Executive Shares, each member of such Mays
Executive’s Sale Group will have the right to sell in one or more Permitted Public
Transfers all or any portion of the Vested Restricted Shares held by such member.

     7.2.2. Rights of First Offer. If a member of a Sale Group proposes to make a
Permitted Public Transfer of any shares of Common Stock in accordance with Section 7.2.1,
then, prior to making such Permitted Public Transfer, such member (the “Transferring
Executive Stockholder”) must comply with this Section 7.2.2.

     (a) Notice. The Transferring Executive Stockholder shall notify the
Company and each of the Investors of such Transferring Executive Stockholder’s
intention to make a Permitted Public Transfer (the “ROFO Notice”). The ROFO
Notice shall identify the number of Shares that are the subject of the proposed
Permitted Public Transfer (the “ROFO Shares”) and shall constitute an
irrevocable offer to Transfer the ROFO Shares to the Company and the Investors and
their respective Investor Designees, on the basis described in this Section 7.2.2,
for the per Share purchase price set forth in the ROFO Notice (the “ROFO
Price”).

     (b) Company Option. The Company will have the right to purchase all or
any portion of the ROFO Shares by giving written notice (the “Company Acceptance
Notice”) to the Transferring Executive Stockholder and the Investors as to the
number of ROFO Shares that the Company is willing to purchase by no later than the
date that is five business days after the date the ROFO Notice is effective (the
“Company ROFO Period”).

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     (c) Investor Option. If the Company does not elect to purchase all of
the ROFO Shares by the end of the Company ROFO Period, the Transferring Executive
Stockholder shall provide the Investors with an additional notice (the “Second
ROFO Notice”) on the last day of the Company ROFO Period that identifies the
ROFO Shares that the Company has declined to purchase (the “Remaining ROFO
Shares”). Each Investor will have the right to purchase, or to cause one or
more of its Investor Designees to purchase, up to such Investor’s Ratable Share of
the Remaining Shares by giving written notice (an “Investor Acceptance
Notice”) to the Transferring Executive Stockholder and the other Investors as to
the number of Remaining ROFO Shares that such Investor and/or its Investor Designees
are willing to purchase by no later than the date that is two business days after
the date the Second ROFO Notice is effective (the “Extended ROFO Period”);
provided that if any Investor declines to purchase (and does not designate
any Persons to purchase as such Investor’s Investor Designees) such Investor’s
Ratable Share of the Remaining ROFO Shares, the Remaining ROFO Shares that such
Investor has declined to purchase shall be made available to the each of the other
Investors and their respective Investor Designees that have delivered an Investor
Acceptance Notice pro rata to such Investors’ respective Ratable Shares unless any
such other Investor has specified in its Investor Acceptance Notice an unwillingness
to participate in such a reallocation. The Company or any Investor or Investor
Designee purchasing Remaining ROFO Shares pursuant to this Section 7.2.2 may, at any
time following the purchase and sale thereof, require that such Remaining ROFO
Shares be converted by the Company into shares of Class C Stock in accordance with
the Company’s certificate of incorporation.

     (d) Closing.

     (i) Except as otherwise agreed in writing by the Transferring Executive
Stockholder, the Company and a Requisite Capital IV Majority, the closing of
any purchase and sale of ROFO Shares by the Company and/or the Investors or
their Investor Designees pursuant to this Section 7.2 shall take place at
the principal office of the Company as soon as reasonably practicable and in
no event later than 15 business days after the delivery of the applicable
ROFO Notice; provided that if any Investors or their Investor
Designees are participating in such purchase and sale, such closing may be
extended solely to the extent necessary to obtain equity financing for such
purchase for an additional 15 business days by a Requisite Capital IV
Majority; provided, further, that, in any case, such closing
may be extended at the election of a Requisite Capital IV Majority and the
Company solely to the extent necessary to obtain any applicable governmental
or regulatory approval. If the closing of any purchase and sale of ROFO
Shares is extended by a Requisite Capital IV Majority pursuant to either or
both of the two preceding proviso clauses for more than 30 days after the
delivery of the applicable ROFO Notice, then the aggregate purchase price
therefor shall accrue interest from and after such 30th day at a per annum
interest rate equal to the prime rate as reported by

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JPMorgan Chase at such time through the date payment is finally made,
such rate of interest to increase by 100 basis points on each three-month
anniversary of such 30th day; provided, however, that in no
event will the per annum rate of interest in effect under this Section
7.2.2(d) exceed 12%. In any event, except as otherwise agreed in writing by
the Transferring Executive Stockholder, the Company and a Requisite Capital
IV Majority, the closing of any purchase and sale of ROFO Shares under this
Section 7.2.2 that has been extended or has otherwise been delayed for more
than 30 days after the delivery of the ROFO Notice under this Section 7.2.2
for such purchase and sale shall take place as soon as practicable (and in
any event within five business days) after the circumstances giving rise to
such extension or delay no longer exist.

     (ii) At such closing, the Transferring Executive Stockholder shall
deliver to the Company and/or the Investors and any applicable Investor
Designees a certificate or certificates representing the ROFO Shares to be
purchased by the Company and/or the Investors and any applicable Investor
Designees duly endorsed, or with stock powers duly endorsed, for transfer
with signature guaranteed, free and clear of any Adverse Claim, with any
necessary stock transfer tax stamps affixed, and the Company and/or the
Investors and any Investor Designees shall pay to the Transferring
Executive Stockholder the purchase price for the respective ROFO Shares that
the Company and/or the Investors and any Investor Designees are purchasing
by certified or bank check or wire transfer of immediately available funds,
less any taxes required to be withheld in respect of the purchase and sale
of any of such ROFO Shares under applicable law. The receipt of
consideration for any ROFO Shares being sold pursuant to this Section 7.2
shall be deemed a representation and warranty by the Transferring Executive
Stockholder that (a) the Transferring Executive Stockholder has full right,
title and interest in and to such ROFO Shares, (b) the Transferring
Executive Stockholder has all necessary power and authority and has taken
all necessary action to sell such ROFO Shares as contemplated and (c) such
ROFO Shares are free and clear of any and all Adverse Claims.

     (e) Permitted Public Sale. If the Company, the Investors and the
Investor Designees do not purchase all of the ROFO Shares in accordance with this
Section 7.2.2, then the Transferring Executive Stockholder may proceed with a
Permitted Public Transfer with respect to the remaining balance of the ROFO Shares
until the end of the respective Permitted Sale Period, but shall not Transfer any
other shares of Common Stock in a Permitted Public Transfer without first complying
with this Section 7.2.2. In addition, except as otherwise agreed by the
Transferring Executive Stockholder, the Company and a Requisite Capital IV Majority,
if, at any time during such Permitted Sale Period, the Transferring Executive
Stockholder desires to make a Permitted Public Transfer of any such ROFO Shares for
a per Share price that is less than 95% of the ROFO Price, then such Transferring
Executive Stockholder must once again comply with the

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provisions of this Section 7.2.2 before doing so; provided,
however, that each applicable period for giving notice to which reference is
made in Section 7.2.2(b) and 7.2.2(c) will be one business day or such longer period
as the Transferring Executive Stockholder, the Company and a Requisite Capital IV
Majority may agree.

7.3. Put Option.

     7.3.1. Restricted Shares. Until the end of a Permitted Sale Period following
the termination of the employment of any Mays Executive with the Company or any of its
subsidiaries during which such Mays Executive and the other members of his Sale Group are
permitted to sell Vested Restricted Shares in Permitted Public Transfers in accordance with
Section 7.2 such Mays Executive will have the right to require the Company to purchase all
or any portion of such Vested Restricted Shares at a per Share price equal to the Fair
Market Value thereof (such right, the “Restricted Stock Put Option”), determined as
of the Closing (in the case of a termination of employment of a type described in Section
7.2.1(a) or 7.2.1(b)) or as of the date the Put Notice related thereto is delivered (in the
case of a termination of employment of a type described in Section 7.2.1(c)).

     7.3.2. Other Shares. If, following any termination of the employment of any
Mays Executive with the Company or any of its subsidiaries that is of a type described in
Section 7.2.1(a) or 7.2.1(b), such Mays Executive and the other members of such Mays
Executive’s Sale Group comply with the requirements of Section 7.2 and use commercially
reasonable good faith efforts to sell in Permitted Public Transfers the Purchased Shares,
Rollover Option Shares and, in the case of a termination of employment of a type described
in Section 7.2.1(a), New Option Shares they are permitted to sell under Section 7.2, but are
unable to sell all such Executive Shares by the end of the Permitted Sale Period applicable
thereto, then, subject to the terms and conditions of this Section 7.3, such Mays Executive
will have the right to require the Company to purchase under this Section 7.3.2 all or any
portion of such Executive Shares that have not been sold (any such Executive Shares,
“Other Put Eligible Shares”), in each case at a per Share price equal to the
respective Fair Market Value thereof (such right, the “Other Stock Put Option”; the
Restricted Stock Put Option and the Other Stock Put Option, each a “Put Option”),
determined as of the date on which the Put Notice applicable thereto is delivered.

     7.3.3. Exercise; Notice. Subject to the terms and conditions of this Section
7.3, (a) a Mays Executive may exercise the Restricted Stock Put Option with respect to all
or any portion of the Vested Restricted Shares held by such Mays Executive and the other
members of his Sale Group on a single occasion by delivery of written notice (a “Put
Notice”) on any date during the respective Permitted Sale Period applicable such Vested
Restricted Shares; and (b) a Mays Executive may exercise the Other Stock Put Option with
respect to all or any portion of the Other Put Eligible Shares held by such Mays Executive
and the other members of his Sale Group by delivery of written notice (a “Put
Notice”) on the first business day after the last day of the respective Permitted Sale
Period applicable to such Other Put Eligible Shares.

A-8

 

     7.3.4. Determination Date; Payment. The purchase price for any Executive
Shares that are the subject of a valid Put Notice (any such Executive Shares, “Put
Shares”) shall be determined as of the applicable date specified in Section 7.3.1 (in
the case of the Restricted Stock Put Option) or in Section 7.3.2 (in the case of the Other
Stock Put Option). The Company shall deliver the applicable Mays Executive a written notice
setting forth such purchase price within five business days following the receipt of any
applicable Put Notice. Any payment required to be made by the Company or the Investors or
any Investor Designees to the applicable Call Group under any provision of this Section 7.3
shall be made in cash.

     7.3.5. Restricted Payments.

     (a) If (i) any payment of cash by the Company otherwise required by this
Section 7.3 or any distribution to the Company from any of its subsidiaries of cash
in the amount of any payment otherwise required to be made by the Company under this
Section 7.3 would result in, or give rise to, a breach or violation of, or any
default or right or cause of action under, any agreement of the Company or any of
its subsidiaries that relates to indebtedness, or (ii) the Board determines in good
faith that the authorization or making of any such payment or distribution (A) would
be detrimental to the Company and its subsidiaries given their financial condition
and liquidity requirements at such time or (B) would constitute a violation of law
or of the Board’s fiduciary duties, then, in either case (i) or (ii), the Company
will have the right to postpone the making of such payment until such time as it may
do so, or may cause a distribution from any of its subsidiaries to do so, without
giving rise to any of the circumstances described in clause (i) or (ii). Without
duplication of any interest chargeable under Section 7.3.6, any payments that are
required to be postponed under this Section 7.3.5, if postponed for more than a
30-day period, shall accrue interest from and after the end of such 30-day period at
a per annum rate equal to the prime rate as reported by JPMorgan Chase at such time
through the date payment is finally made, such rate of interest to increase by 100
basis points on each three-month anniversary of the end of such 30-day period;
provided, however, that in no event will the per annum rate of
interest in effect under this Section 7.3.5 exceed 12%. The Company shall pay any
amount required under Section 7.3 (together with interest accrued thereon, as
calculated in accordance with this Section 7.3.5) that is postponed in accordance
with this Section 7.3.5 as soon as practicable (and in any event within five
business days) after the Company can do so without giving rise to any of the
circumstances described in clause (i) or (ii) of this Section 7.3.5.

     (b) The Company agrees to use good faith efforts to resist any amendment
proposed by its current or future lenders to the terms of the senior credit facility
of the Company and its subsidiaries that by its express terms would prevent the
Company from satisfying its obligations under any valid Put Option without availing
itself of the provisions of Section 7.3.5(a); provided, however,
that nothing in this Section 7.3.5(b) will prevent the Company from agreeing to such
an amendment if it believes that doing so is in the best interests of the Company.

A-9

 

     7.3.6. Closing.

     (a) Except as otherwise agreed in writing by the Company, a Requisite Capital
IV Majority and the Mays Executive exercising the applicable Put Option, the closing
of any purchase and sale of Put Shares pursuant to the exercise of any Put Option
pursuant to this Section 7.3 shall take place at the principal office of the Company
as soon as reasonably practicable and in no event later than the date that is the
later of (i) 15 business days after the delivery of the Put Notice applicable to
such Put Option and (ii) five business days after all Appraisals, if any, conducted
in connection with such Put Option have become final; provided that such
closing may be extended at the election of a Requisite Capital IV Majority and the
Company solely to the extent necessary to obtain any applicable governmental or
regulatory approval. If the closing of any purchase and sale of Put Shares is
extended by a Requisite Capital IV Majority pursuant to Section 7.3.7 or the
preceding proviso clause, in either case for more than 30 days after the delivery of
the applicable Put Notice, then the purchase price therefor shall accrue from and
after the 30th day at a per annum interest rate equal to the prime rate as reported
by JPMorgan Chase at such time through the date payment is finally made, such rate
of interest to increase by 100 basis points on each three-month anniversary of such
30th day; provided, however, that in no event will the per annum
rate of interest in effect under this Section 7.3.6 exceed 12%. In a case where an
Appraisal is conducted in connection with a purchase and sale of Put Shares under
this Section 7.3, (A) interest shall begin to accrue under the preceding sentence
only if the closing of such purchase and sale has not occurred within 45 days after
the engagement of the investment bank conducting such Appraisal (in which case all
references in the preceding sentence to such “30th day” will be deemed to be
replaced with a reference to the 45th day after such engagement); and (B) no
interest shall be due if the Fair Market Value of such Put Shares, as determined by
the investment bank conducting such Appraisal, is not more than 110% of the
determination of the Fair Market Value of such Put Shares by the Board set forth in
the Put Notice applicable to such Put Shares. In any event, except as otherwise
agreed in writing by the Company, a Requisite Capital IV Majority and the Mays
Executive exercising the applicable Put Option, the closing of any purchase and sale
of Put Shares under this Section 7.3 that has been extended or has otherwise been
delayed for more than 30 days under this Section 7.3 after the delivery of the Put
Notice for such Put Shares shall take place as soon as practicable (and in any event
within five business days) after the circumstances giving rise to such extension or
delay no longer exist.

     (b) At the closing of any purchase and sale of Put Shares following the
exercise of any Put Option, each member of the Sale Group selling Put Shares shall
deliver to the Company and/or the Investors and any applicable Investor Designees a
certificate or certificates representing the Shares to be purchased by the Company
and/or the Investors or any applicable Investor Designees duly endorsed, or with
stock powers duly endorsed, for transfer with signature guaranteed, free and clear
of any Adverse Claim, with any necessary stock transfer tax stamps affixed, and the
Company and/or the Investors and Investor

A-10

 

Designees shall pay to such member the purchase price for such Put Shares by
certified or bank check or wire transfer of immediately available funds, less any
taxes or other amounts required to be withheld under applicable law. The receipt of
consideration for any Shares being sold pursuant to any Put Option shall be deemed a
representation and warranty by the Person receiving such consideration that (a) such
Person has full right, title and interest in and to such Shares, (b) such Person has
all necessary power and authority and has taken all necessary action to sell such
Shares as contemplated and (c) such Shares are free and clear of any and all Adverse
Claims.

     7.3.7. Assignment. The Company may at any time assign its obligation, in whole
or in part, to purchase any Put Shares that are subject to a valid Put Option to any
Investors that agree in writing to accept the same. If one or more Investors agree in
writing to accept such obligation, in whole or in part, then each of those Investors may
elect to purchase (or elect to have an Investor Designee purchase) up to such Investor’s
Ratable Share of the Put Shares in question for the same purchase price(s) (including any
interest thereon, if applicable) and on the same terms and conditions as the Company would
be required to purchase such Put Shares under this Section 7.3; provided,
however, that, notwithstanding the provisions of Section 7.3.6(a), if Investors or
Investor Designees take part in a purchase and sale of Put Shares, then a Requisite Capital
IV Majority may extend the closing date for up to 15 business days solely to the extent
necessary to obtain equity financing for such purchase; provided, further,
however, that Investors and Investor Designees taking part in any such purchase and
sale of Put Shares may not avail themselves of the provisions of Section 7.3.5 to postpone
the payment of such purchase price(s) (or interest thereon, if applicable), it being
understood that if any such Investor or Investor Designee assigns the obligation to purchase
any such Put Shares back to the Company (which the Company will be obligated to accept
without condition), the provisions of Section 7.3.5 will be available to the Company and
applicable to the purchase and sale of such Put Shares. The Company or any Investor or
Investor Designee purchasing Put Shares pursuant to this Section 7.3.7 may require, at any
time following the purchase and sale thereof, that such Put Shares be converted by the
Company into shares of Class C Stock in accordance with the Company’s certificate of
incorporation.

     7.4. Acknowledgment. Each Mays Executive and each of his Executive Designees
acknowledges and agrees that none of the Company, any Investor, any Investor Designee or any Person
that is directly or indirectly affiliated with the Company, any Investor, any Investor Designee and
exercises any rights, or performs any obligations, under any of Sections 7.1, 7.2 or 7.3 (in each
case including as a director, officer, manager, employee, agent or otherwise) has any duty or
obligation to disclose to any of such Executive’s Call Group or Sale Group, and no member of any
such Call Group or Sale Group shall have any right to be advised of, any material information
regarding the Company or any of its subsidiaries or otherwise at any time prior to, upon, or in
connection with any termination of an Mays Executive’s employment with the Company or any of its
subsidiaries or upon the exercise of any Call Option, Put Option or other right to purchase Shares
under this Section 7 or otherwise in connection with any purchase of Shares in accordance with the
terms of any of Sections 7.1, 7.2 or 7.3.

A-11

 

     7.5. Period. The provisions of Sections 7.1, 7.2 and 7.3 shall terminate upon the
earlier of (a) the occurrence of a Change of Control and (b) the closing of the Qualified Public
Offering.

A-12

 

Exhibit B

Definitions

     “Appraisal” has the meaning set forth in Section 7.16.

     “Call Group” has the meaning set forth in Section 7.1.

     “Call Notice” has the meaning set forth in Section 7.1.2.

     “Call Notice Due Date” has the meaning set forth in Section 7.1.2.

     “Call Option” has the meaning set forth in Section 7.1.

     “Cause” when used in relation to a Mays Executive, has the meaning given to such term
in the respective Employment Agreement to which such Mays Executive is a party.

     “Company Acceptance Notice” has the meaning set forth in Section 7.2.2.

     “Company ROFO Period” has the meaning set forth in Section 7.2.2.

     “Comparable Company” means, in relation to the Company during any given period of time
following the termination of employment of a Mays Executive, any corporation that during such time
has Publicly-Traded Shares and an amount of Publicly-Held Shares that have an aggregate value that
is not less than 90%, or greater than 110%, of the aggregate value of the Company’s Publicly-Held
Shares during such time and that the Board and such Mays Executive mutually agree is otherwise
comparable to the Company.

     “Cost” means, with respect to any Executive Share, the purchase price paid for such
Executive Share by the original holder thereof, less any distributions received with respect to
such Executive Share.

     “Extended ROFO Period” has the meaning set forth in Section 7.2.2.

     “Fair Market Value” will be determined with respect to any Share as of any given date
under clause (a) or (b) below, whichever is applicable to such Share under the circumstances,
except that in all cases for purposes of this Agreement the “Fair Market Value” of a Restricted
Share as of the Closing Date will be deemed to equal $36.00 (subject to appropriate adjustment as
determined by the Company for any stock split, reverse stock split or similar transaction affecting
the Class A Stock that occurs after the Closing Date):

     (a) if, on such date, the Company has Publicly-Traded Shares and the average weekly
reported volume of trading in the Company’s Publicly-Traded Shares during the calendar weeks
falling in the 30 calendar days preceding such date is at least equal to 50% of the median
of the average weekly reported volumes of trading in the Publicly-Traded Shares of
Comparable Companies during those same calendar weeks, then the “Fair Market Value” of such
Share will be the average closing trading-price of the Company’s Publicly-Traded Shares
during all of the trading days in that 30 calendar-day period; or

 

 

     (b) if the foregoing clause (a) is not applicable, then the “Fair Market Value” of such
Share as of such date will be as determined by the Board in good faith; provided
that if, not later than ten business days after being delivered notice of any such
determination pursuant to Section 7.1 or 7.3, as applicable, the Mays Executive whose Call
Group or Sale Group, as the case may be, has Executive Shares subject to such determination
delivers written notice to the Board of his objection to such determination, then the “Fair
Market Value” of such Share will be as determined by a nationally-recognized investment bank
that is mutually acceptable to the Board and the applicable Mays Executive (which bank shall
be selected by no later than ten business days after the applicable Mays Executive delivers
such objection to the Board), whose determination will be binding on the Company and such
Mays Executive and all members of his Call Group or Sale Group, as applicable, and whose
fees and expenses shall be paid for by the Company.

     “Good Reason” when used in relation to a Mays Executive, has the meaning given to such
term in the respective Employment Agreement to which such Mays Executive is a party.

     “Investor Acceptance Notice” has the meaning set forth in Section 7.2.2.

     “Investor Designee” means, in relation to any Investor, any Person designated by such
Investor to purchase Executive Shares under Section 7.1, 7.2 or 7.3.

     “Mays Executive” means each of L. Lowry Mays, Mark P. Mays and Randall T. Mays.

     “New Options” means, as to any Mays Executive or his Permitted Transferees, Options
that are Shares but are not Rollover Options.

     “New Option Shares” means Shares acquired upon exercise of a New Option.

     “Option Exercise Date” has the meaning set forth in Section 7.1.2.

     “Option Shares” means Shares acquired upon exercise of an Option that is a Share.

     “Other Put Eligible Shares” has the meaning set forth in Section 7.3.2.

     “Other Stock Put Option” has the meaning set forth in Section 7.3.2.

     “Permitted Public Transfer” has the meaning set forth in Section 7.2.

     “Permitted Sale Period” means (a) with respect to any Restricted Shares held by a
member of a Mays Executive’s Sale Group, the period commencing on the effective date of the Mays
Executive’s termination of employment with the Company or any of its subsidiaries and ending on the
earlier of (i) the 90th day thereafter or (ii) March 1st of the year following the calendar year in
which the Mays Executive’s termination of employment occurs; or (b) with respect to any other
Executive Shares held by a member of a Mays Executive’s Sale Group, the period commencing on the
effective date of the Mays Executive’s termination of employment with the Company or any of its
subsidiaries and ending on the six-month anniversary thereof.

B-2

 

     “Publicly-Held Shares” means, as of any given time, with respect to any class of
common stock of a corporation that is registered under Section 12 of the Exchange Act, the total
number of issued and outstanding shares of such class, as set forth in the most recent report filed
by such corporation under the Securities Act or the Exchange Act (excluding, for purposes of this
definition, all of the issued and outstanding shares of such class, if any, that are beneficially
owned by any Person (or group of Persons reporting as a group under the Exchange Act) that
beneficially owns 25% or more of such total number of reported issued and outstanding shares).

     “Publicly-Traded Shares” means, in relation to any corporation as of any given time,
shares of such corporation’s common stock that are then issued and outstanding and belong to a
class of common stock that is (a) registered under Section 12 of the Exchange Act and (b) listed on
a national securities exchange, authorized for quotation in the automated quotations system of
national securities association or traded over-the-counter.

     “Purchased Shares” means, as to any Mays Executive or Executive Designee or any of
their respective Permitted Transferees: (a) all Shares originally purchased by or issued to such
Mays Executive or Executive Designee (i) pursuant to the Subscription Agreement to which such Mays
Executive or Executive Designee is party, (ii) in connection with the Closing in substitution of
shares of restricted stock of Clear Channel granted to such Mays Executive on or about May 22, 2007
or (iii) pursuant to Section 5; and (b) all other Executive Shares designated as “Purchased Shares”
by a Requisite Capital IV Majority.

     “Put Notice” has the meaning set forth in Section 7.3.3.

     “Put Option” has the meaning set forth in Section 7.3.

     “Put Shares” has the meaning set forth in Section 7.3.4.

     “Ratable Share” means:

     (a) as to any Investor, with respect to any Executive Shares that the Investors have a
right to purchase under Section 7.1.7, a number of such Executive Shares equal to the
product of (i) the aggregate number of such Executive Shares multiplied by (ii) a fraction,
the numerator of which is the number of Shares held by that Investor as of the date the
Investors are notified of or otherwise acquire their right to purchase such Executive
Shares, and the denominator of which is the aggregate number of Shares held by all Investors
as of that date;

     (b) as to any Investor, with respect to any Remaining ROFO Shares that the Investors
have a right to purchase under Section 7.2.2, a number of such Remaining ROFO Shares equal
to the product of (i) the aggregate number of such Remaining ROFO Shares multiplied by (ii)
a fraction, the numerator of which is the number of Shares held by that Investor as of the
date of the applicable Second ROFO Notice, and the denominator of which is the aggregate
number of Shares held by all Investors as of that date; or

     (c) as to any Investor, with respect to any Put Shares that the Investors are notified
of their opportunity to purchase under Section 7.3.7, a number of such Put

B-3

 

Shares equal to the product of (i) the aggregate number of such Put Shares multiplied
by (ii) a fraction, the numerator of which is the number of Shares held by that Investor as
of the date the Investors are notified of their opportunity to purchase such Put Shares, and
the denominator of which is the aggregate number of Shares held by all Investors as of that
date.

     “Remaining ROFO Shares” has the meaning set forth in Section 7.2.2.

     “Restricted Shares” means, as to Mark P. Mays or any of his Permitted Transferees or
Randall T. Mays or any of his Permitted Transferees, as the case may be, the respective Shares
originally granted to such Mays Executive pursuant to the terms of the respective Restricted Stock
Agreement dated as of the Closing Date between the Company and such Mays Executive.

     “Restricted Stock Put Option” has the meaning set forth in Section 7.3.1.

     “Retirement” means, with respect to any Mays Executive, such Mays Executive’s
retirement from service with the Company and its subsidiaries (a) after attaining 62 years of age
or (b) after attaining 60 years of age and completing 36 months of service after the Closing.

     “ROFO Notice” has the meaning set forth in Section 7.2.2.

     “ROFO Price” has the meaning set forth in Section 7.2.2.

     “ROFO Shares” has the meaning set forth in Section 7.2.2.

     “Rollover Options” means, as to any Mays Executive or any Permitted Transferee of any
such Mays Executive, Options governed by the terms of the respective Rollover Option Agreement
dated as of the Closing Date between the Company and such Mays Executive.

     “Rollover Option Shares” means Shares acquired upon exercise of a Rollover Option.

     “Sale Group” has the meaning set forth in Section 7.2.

     “Second ROFO Period” has the meaning set forth in Section 7.2.2.

     “Transferring Executive Stockholder” has the meaning set forth in Section 7.2.2.

     “Unvested Restricted Shares” means, as of any given time, Restricted Shares that are
not then Vested Executive Shares.

     “Vested Restricted Shares” means, as of any given time, Restricted Shares that are
then Vested Executive Shares.

B-4exv10w11

Exhibit 10.11

EMPLOYMENT AGREEMENT

     This Employment Agreement is entered into and effective this 29 th day of
June, 2008 (the “Effective Date”) between Clear Channel Broadcasting, Inc. (the “Company”) and John
Hogan (the “Employee”).

     WHEREAS, the Company and the Employee desire to enter into an employment relationship under
the terms and conditions set forth in this Agreement, which supersedes the prior employment
agreement dated February 18, 2004;

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

1. TERM OF EMPLOYMENT. Company hereby agrees to employ Employee, and Employee hereby agrees to be
employed by Company, in accordance with the terms and conditions of this Agreement, for the period
commencing as of the Effective Date and ending on June 29, 2013 (the “Employment Period” or
“Term”). Thereafter, beginning on June 30, 2013, the Employment Period shall be automatically
extended from year to year unless either Company or Employee gives written notice of non-renewal on
or before April 1, 2013, or annually on each April 1 thereafter, that the Employment Period shall
not be extended. The term “Employment Period” shall refer to the Employment Period if and as so
extended. If this Agreement is extended pursuant to the foregoing provisions, all terms and
conditions of this Agreement shall remain the same; provided, however, that the terms of this
Agreement may be modified in accordance with Section 18.

2. TITLE AND DUTIES. The Employee’s title is President and Chief Executive Officer, Clear Channel
Radio. The Employee will perform job duties that are usual and customary for this position, and
will perform additional services and duties that the Company may from time to time designate that
are consistent with the usual and customary duties of this position. The Employee will report to
Mark Mays, Chief Executive Officer, Clear Channel Communications, Inc. The Employee will devote his
full working time and efforts to the business and affairs of Clear Channel Radio.

3. COMPENSATION AND BENEFITS.

     (A) BASE SALARY. The Company will continue to pay Employee his annual base salary through
January 31, 2009. Employee is eligible for a raise after completion of the 2008 compensation study
on or about October 1, 2008. Thereafter, Employee will be eligible for annual raises after
January 31, 2009 commensurate with Company policy. All payments of base salary will be made in
installments according to the Company’s regular payroll practice, prorated monthly or weekly where
appropriate, and subject to any increases that are determined to be appropriate by the Board or its
Compensation Committee.

     (B) PERFORMANCE BONUS. No later than March 15 of each calendar year following that in which
the Performance Bonus was earned during the term, Employee will be eligible to receive a
performance bonus as set forth in the Performance Bonus Calculation attached as “Exhibit A” to this
Employment Agreement.

1

 

     (C) EMPLOYMENT BENEFIT PLANS. The Employee will be entitled to participate in all pension,
profit sharing, and other retirement plans, all incentive compensation plans, and all group health,
hospitalization and disability or other insurance plans, paid vacation, sick leave and other
employee welfare benefit plans in which other similarly situated employees of the Company may
participate as stated in the employee guide.

     (D) EXPENSES. The Company will pay or reimburse the Employee for all normal and reasonable
travel and entertainment expenses incurred by the Employee in connection with the Employee’s
responsibilities to the Company upon submission of proper vouchers in accordance with the Company’s
expense reimbursement policy. Any reimbursement that would constitute nonqualified deferred
compensation subject to Section 409A shall be subject to the following additional rules: (i) no
reimbursement of any such expense shall affect the Employee’s right to reimbursement of any other
such expense in any other taxable year; (ii) reimbursement of the expense shall be made, if at all,
not later than the end of the calendar year following the calendar year in which the expense was
incurred; and (iii) the right to reimbursement shall not be subject to liquidation or exchange for
any other benefit.

     (E) STOCK OPTIONS OR OTHER FORM OF ADDITIONAL CONSIDERATION. Employee shall be eligible to
receive Stock Options or an alternative form of additional compensation, subject to performance
criteria, input from the CEO of Clear Channel Communications, Inc. (CCU), and approval from CCU’s
Board of Directors. In Company’s sole discretion, Company may at any time (i) alter, suspend or
discontinue its stock option grant or long term incentive compensation program or (ii) replace the
program with an alternative form of additional compensation.

4. NONDISCLOSURE OF CONFIDENTIAL INFORMATION. During the course of the Employee’s employment with
the Company, the Company will provide the Employee with access to certain confidential information,
trade secrets, and other matters which are of a confidential or proprietary nature, including but
not limited to the Company’s customer lists, pricing information, production and cost data,
compensation and fee information, strategic business plans, budgets, financial statements, and
other information the Company treats as confidential or proprietary (collectively the “Confidential
Information”). The Company provides on an ongoing basis such Confidential Information as the
Company deems necessary or desirable to aid the Employee in the performance of his duties. The
Employee understands and acknowledges that such Confidential Information is confidential and
proprietary, and agrees not to disclose such Confidential Information to anyone outside the Company
except to the extent that (i) the Employee deems such disclosure or use reasonably necessary or
appropriate in connection with performing his duties on behalf of the Company; (ii) the Employee is
required by order of a court of competent jurisdiction (by subpoena or similar process) to disclose
or discuss any Confidential Information, provided that in such case, the Employee shall promptly
inform the Company of such event, shall cooperate with the Company in attempting to obtain a
protective order or to otherwise restrict such disclosure, and shall only disclose Confidential
Information to the minimum extent necessary to comply with any such court order; or (iii) such
Confidential Information becomes generally known to and available for use in the industries in
which the Company does business, other than as a result of any action or inaction by the Employee.
The Employee further agrees that he will not during employment and/or at any time thereafter use
such Confidential Information in competing, directly or indirectly, with the

2

 

Company. At such time as the Employee shall cease to be employed by the Company, he will
immediately turn over to the Company all Confidential Information, including papers, documents,
writings, electronically stored information, other property, and all copies of them, provided to or
created by him during the course of his employment with the Company. This nondisclosure covenant is
binding on the Employee, as well as his heirs, successors, and legal representatives, and will
survive the termination of this Agreement for any reason.

5. NONHIRE OF COMPANY EMPLOYEES. To further preserve the rights of the Company pursuant to the
nondisclosure covenant discussed above, and for the consideration promised by the Company under
this Agreement, during the term of the Employee’s employment with the Company and for a period of
twelve months thereafter, regardless of the reason for termination of employment, the Employee will
not, directly or indirectly, (i) hire any current or prospective employee of the Company, or any
subsidiary or affiliate of the Company (including, without limitation, any current or prospective
employee of the Company within the 6-month period preceding the Employee’s last day of employment
with the Company or within the 12-month period of this covenant) who worked, works, or has been
offered employment by the Company; (ii) solicit or encourage any such employee to terminate their
employment with the Company, or any subsidiary or affiliate of the Company; or (iii) solicit or
encourage any such employee to accept employment with any business, operation, corporation,
partnership, association, agency, or other person or entity with which the Employee may be
associated.

6. NON-COMPETITION. To further preserve the rights of the Company pursuant to the nondisclosure
covenant discussed above, and for the consideration promised by the Company under this Agreement,
during the Employee’s employment with the Company and for a period of one year thereafter,
regardless of the reason for termination of employment, the Employee will not, directly or
indirectly, as an owner, director, principal, agent, officer, employee, partner, consultant,
servant, or otherwise, carry on, operate, manage, control, or become involved in any manner with
any business, operation, corporation, partnership, association, agency, or other person or entity
which is in the same business as the Company in any location in which the Company, or any
subsidiary or affiliate of the Company, operates or has plans or has projected to operate during
the Employee’s employment with the Company, including any area within a 50-mile radius of any such
location. The foregoing shall not prohibit the Employee from owning up to 5.0% of the outstanding
stock of any publicly held company. Notwithstanding the foregoing, after the Employee’s employment
with the Company has terminated, upon receiving written permission by the Board, the Employee shall
be permitted to engage in such competing activities that would otherwise be prohibited by this
covenant if such activities are determined in the sole discretion of the Board in good faith to be
immaterial to the operations of the Company, or any subsidiary or affiliate of the Company, in the
location in question.

     To further preserve the rights of the Company pursuant to the nondisclosure covenant discussed
above, and for the consideration promised by the Company under this Agreement, during the term of
the Employee’s employment with the Company and for a period of one year thereafter, regardless of
the reason for termination of employment, the Employee will not, directly or indirectly, either for
himself or for any other business, operation, corporation, partnership, association, agency, or
other person or entity, call upon, compete for, solicit, divert, or take away, or attempt to divert
or take away current or prospective customers (including, without limitation, any customer with
whom the Company, or any subsidiary or affiliate of the

3

 

Company, (i) has an existing agreement or business relationship; (ii) has had an agreement or
business relationship within the six-month period preceding the Employee’s last day of employment
with the Company; or (iii) has included as a prospect in its applicable pipeline) of the Company,
or any subsidiary or affiliate of the Company.

     The Company and the Employee agree that the restrictions contained in this noncompetition
covenant are reasonable in scope and duration and are necessary to protect the Company’s business
interests and Confidential Information. If any provision of this noncompetition covenant as applied
to any party or to any circumstance is adjudged by a court or arbitrator to be invalid or
unenforceable, the same will in no way affect any other circumstance or the validity or
enforceability of this Agreement. If any such provision, or any part thereof, is held to be
unenforceable because of the scope, duration, or geographic area covered thereby, the parties agree
that the court or arbitrator making such determination shall have the power to reduce the scope
and/or duration and/or geographic area of such provision, and/or to delete specific words or
phrases, and in its reduced form, such provision shall then be enforceable and shall be enforced.
The parties agree and acknowledge that the breach of this noncompetition covenant will cause
irreparable damage to the Company, and upon breach of any provision of this noncompetition
covenant, the Company shall be entitled to injunctive relief, specific performance, or other
equitable relief; provided, however, that this shall in no way limit any other remedies which the
Company may have (including, without limitation, the right to seek monetary damages).

     Should the Employee violate the provisions of this noncompetition covenant, then in addition
to all other rights and remedies available to the Company at law or in equity, the duration of this
covenant shall automatically be extended for the period of time from which the Employee began such
violation until he permanently ceases such violation.

     Notwithstanding anything to the contrary in this Agreement, if the noncompetition covenant is
adjudged to be invalid or unenforceable, or if it is substantially reduced in scope or geographic
area, and if Employee then performs services in any capacity in competition with the Company, then
the Company shall have no severance compensation obligations to Employee under Section 8 of this
Agreement.

7. TERMINATION. The Employee’s employment with the Company may be terminated under the following
circumstances:

     (A) DEATH. The Employee’s employment with the Company shall terminate upon his death.

     (B) DISABILITY. The Company may terminate the Employee’s employment with the Company if, as a
result of the Employee’s incapacity due to physical or mental illness, the Employee is unable to
perform his duties under this Agreement on a full-time basis for more than 90 days in any 12 month
period, as determined by the Company.

     (C) TERMINATION BY THE COMPANY. The Company may terminate the Employee’s employment without
cause, subject to the severance obligations in Section 8(d). The Company may also terminate his
employment for Cause. A termination for Cause must be

4

 

for one or more of the following reasons: (i) conduct by the Employee constituting a material act
of willful misconduct in connection with the performance of his duties, including, without
limitation, violation of the Company’s policy on sexual harassment, misappropriation of funds or
property of the Company or any of its affiliates other than the occasional, customary and de
minimis use of Company property for personal purposes, or other willful misconduct as determined in
the sole reasonable discretion of the Company; (ii) continued, willful and deliberate
non-performance by the Employee of his duties hereunder (other than by reason of the Employee’s
physical or mental illness, incapacity or disability) where such non-performance has continued for
more than 10 days following written notice of such non-performance; (iii) the Employee’s refusal or
failure to follow lawful directives where such refusal or failure has continued for more than 30
days following written notice of such refusal or failure; (iv) a criminal or civil conviction of
the Employee, a plea of nolo contendere by the Employee, or other conduct by the Employee that, as
determined in the sole reasonable discretion of the Board, has resulted in, or would result in if
he were retained in his position with the Company, material injury to the reputation of the
Company, including, without limitation, conviction of fraud, theft, embezzlement, or a crime
involving moral turpitude; (v) a material breach by the Employee of any of the provisions of this
Agreement; or (vi) a material violation by the Employee of the Company’s employment policies.

     (D) Termination By Employee For Good Cause. Employee may terminate this Agreement at any time
for “Good Cause,” which is defined as one of the following: (i) a repeated willful failure of
Company to comply with a material term of this Agreement after written notice by Employee
specifying the alleged failure; or (ii) a substantial and unusual change in Employee’s position,
material duties, responsibilities, or authority without an offer of additional reasonable
compensation as determined by Company in light of compensation levels for similarly situated
employees; or (iii) a substantial and unusual reduction in Employee’s material duties,
responsibilities or authority. If Employee elects to terminate this Agreement for “Good Cause” as
described above in this paragraph, Employee must provide Company written notice within thirty
(30) days of the occurrence of “Good Cause,” after which Company shall have thirty (30) days within
which to cure. If in spite of Company’s efforts to cure, Employee still elects to terminate this
Agreement, he must do so within ten (10) days after the end of the cure period.

     (E) KEY MAN. (This provision has been approved by the Compensation Committee of the Board of
Directors.) In the event that during the Term of this Agreement the circumstance arises that the
Employee does not report directly to Lowry Mays, Mark Mays, or Randall Mays, Employee may terminate
this Agreement, in writing, but in no event later than 90 days after such circumstance occurs.
Compensation as a result of a Termination under this provision shall be treated the same as if the
Employee had terminated for Good Cause (See Section 8(e), below).

8. COMPENSATION UPON TERMINATION.

     (A) DEATH. If the Employee’s employment with the Company terminates by reason of his death,
the Company will, within 45 days of said termination, pay in a lump sum amount to such person as
the Employee shall designate in a notice filed with the Company or, if no such person is
designated, to the Employee’s estate, the Employee’s accrued and unpaid base

5

 

salary and prorated bonus, if any (See Exhibit A), and any payments to which the Employee’s spouse,
beneficiaries, or estate may be entitled under any applicable employee benefit plan (according to
the terms of such plans and policies).

     (B) DISABILITY. If the Employee’s employment with the Company terminates by reason of his
disability, the Company shall, within 45 days of said termination, pay in a lump sum amount to the
Employee his accrued and unpaid base salary and prorated bonus, if any (See Exhibit A), and any
payments to which he may be entitled under any applicable employee benefit plan (according to the
terms of such plans and policies).

     (C) TERMINATION BY THE COMPANY FOR CAUSE. If the Employee’s employment with the Company is
terminated by the Company for Cause the Company will, within 45 days of said termination, pay in a
lump sum amount to the Employee his accrued and unpaid base salary and any payments to which he may
be entitled under any applicable employee benefit plan (according to the terms of such plans and
policies).

     (D) NON-RENEWAL BY COMPANY; TERMINATION BY THE COMPANY WITHOUT CAUSE. If the Employee’s
employment with the Company is terminated by the Company without Cause, or if Company terminates
employment following its notice of non-renewal, the Employment Period shall end on a date to be
determined by Company and the Company will, within 45 days of said termination, pay in a lump sum
amount to the Employee his accrued and unpaid base salary and any payments to which he may be
entitled under any applicable employee benefit plan (according to the terms of such plans and
policies). In addition, if Employee signs a severance agreement and general release of claims in a
form and manner satisfactory to Company, Company will pay to Employee, in periodic payments twice
per month over a period of three years in accordance with ordinary payroll practices and
deductions, an amount equal to three times the average of Employee’s annualized base salary for the
current and prior full year of employment.

     (E) TERMINATION BY EMPLOYEE FOR GOOD CAUSE. If the Employee terminates for Good Cause under
Section 7, employment shall end on a date to be determined mutually by Company and Employee, and
the Company will, within 45 days of said termination, pay in a lump sum amount to the Employee his
accrued and unpaid base salary and any payments to which he may be entitled under any applicable
employee benefit plan (according to the terms of such plans and policies). In addition, if Employee
signs a severance agreement and general release of claims in a form and manner satisfactory to
Company, Company will pay to Employee, in periodic payments twice per month over a period of three
years, in accordance with ordinary payroll practices and deductions, an amount equal to three times
the average of Employee’s annualized base salary for the current and prior full year of employment.

     (F) NON-RENEWAL BY EMPLOYEE. If Employee gives notice of non-renewal under Section 1,
employment shall end on a date to be determined by Company and the Company will, within 45 days,
pay in a lump sum amount to the Employee his accrued and unpaid base salary and any payments to
which he may be entitled under any applicable employee benefit plan (according to the terms of such
plans and policies). In addition, if Employee signs a severance agreement and general release of
claims in a form and manner

6

 

satisfactory to Company, Company will, within 45 days, pay to Employee, an amount equal to
Employee’s then current base salary for one year, payable in periodic payments twice per month over
a period of one year during the Employee’s one year noncompete, in accordance with ordinary payroll
practices and deductions.

     (G) PRO-RATA BONUS. If Company terminates Employee without Cause or due to non-renewal notice
by Company, or if Employee terminates for Good Cause, Employee shall be paid a pro-rata Performance
Bonus no later than March 15 of the calendar year following that in which the Performance Bonus
would otherwise have been earned during the term, It is expressly understood and agreed that the
pro-rata Performance Bonus will be paid only if such bonus would have otherwise been earned if
employment had not been terminated.

     (H) EFFECT OF COMPLIANCE WITH COMPENSATION UPON TERMINATION PROVISIONS. Upon complying with
Subparagraphs 8(a) through 8(e) above, as applicable, the Company will have no further obligations
to the Employee except as otherwise expressly provided under this Agreement, provided that such
compliance will not adversely affect or alter the Employee’s rights under any employee benefit plan
of the Company in which the Employee has a vested interest, unless, otherwise provided in such
employee benefit plan or any agreement or other instrument attendant thereto.

9. PARTIES BENEFITED; ASSIGNMENTS. This Agreement shall be binding upon the Employee, his heirs and
his personal representative or representatives, and upon the Company and its respective successors
and assigns. Neither this Agreement nor any rights or obligations hereunder may be assigned by the
Employee, other than by will or by the laws of descent and distribution.

10. NOTICES. Any notice provided for in this Agreement will be in writing and will be deemed to
have been given when delivered or mailed by United States registered or certified mail, return
receipt requested, postage prepaid. If to the Board or the Company, the notice will be sent to Mark
P. Mays, 200 E. Basse Road, San Antonio, TX 78209 and a copy of the notice will be sent to Chief
Legal Officer, 200 E. Basse Road, San Antonio, TX 78209. If to the Employee, the notice will be
sent to 30899 Venturer, Fair Oaks Ranch, TX 78015 and a copy of the notice will be sent to Michael
Hogan. Such notices may alternatively be sent to such other address as any party may have furnished
to the other in writing in accordance with this Agreement, except that notices of change of address
shall be effective only upon receipt.

11. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of Texas without giving effect to any choice of law or conflict
provisions or rule (whether of the State of Texas or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Texas and the Employee hereby
expressly consents to the personal jurisdiction of the state and federal courts located in the
State of Texas for any lawsuit arising from or relating to this Agreement.

12. DEFINITION OF COMPANY. As used in this Agreement, the term “Company” shall include any of its
present and future divisions, operating companies, subsidiaries and affiliates.

7

 

13. LITIGATION AND REGULATORY COOPERATION. During and after the Employee’s employment, the Employee
shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions
now in existence or which may be brought in the future against or on behalf of the Company which
relate to events or occurrences that transpired while the Employee was employed by the Company;
provided, however, that such cooperation shall not materially and adversely affect the Employee or
expose the Employee to an increased probability of civil or criminal litigation. The Employee’s
cooperation in connection with such claims or actions shall include, but not be limited to, being
available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf
of the Company at mutually convenient times. During and after the Employee’s employment, the
Employee also shall cooperate fully with the Company in connection with any investigation or review
of any federal, state or local regulatory authority as any such investigation or review relates to
events or occurrences that transpired while the Employee was employed by the Company. The Company
will pay the Employee on an hourly basis (to be derived from his base salary) for requested
litigation and regulatory cooperation that occurs after his termination of employment, and
reimburse the Employee for all costs and expenses incurred in connection with his performance under
this paragraph, including, but not limited to, reasonable attorneys’ fees and costs.

14. INDEMNIFICATION AND INSURANCE; LEGAL EXPENSES. The Company shall indemnify the Employee to the
fullest extent permitted by law, in effect at the time of the subject act or omission, and shall
advance to the Employee reasonable attorneys’ fees and expenses as such fees and expenses are
incurred (subject to an undertaking from the Employee to repay such advances if it shall be finally
determined by a judicial decision which is not subject to further appeal that the Employee was not
entitled to the reimbursement of such fees and expenses), and the Employee will be entitled to the
protection of any insurance policies that the Company may elect to maintain generally for the
benefit of its directors and officers against all costs, charges and expenses incurred or sustained
by him in connection with any action, suit or proceeding to which he may be made a party by reason
of his being or having been a director, officer or employee of the Company or any of its
subsidiaries, or his serving or having served any other enterprise as a director, officer or
employee at the request of the Company (other than any dispute, claim or controversy arising under
or relating to this Agreement). The Company covenants to maintain during the Employee’s employment
for the benefit of the Employee (in his capacity as an officer and director of the Company)
Directors and Officers Insurance providing benefits to the Employee no less favorable, taken as a
whole, than the benefits provided to the other similarly situated employees of the Company by the
Directors and Officers Insurance maintained by the Company on the date hereof; provided, however,
that the Board may elect to terminate Directors and Officers Insurance for all officers and
directors, including the Employee, if the Board determines in good faith that such insurance is not
available or is available only at unreasonable expense.

15. ARBITRATION. The parties agree that any dispute, controversy or claim, whether based on
contract, tort, statute, discrimination, retaliation, or otherwise, relating to, arising from or
connected in any manner to this Agreement, or to the alleged breach of this Agreement, or arising
out of or relating to Employee’s employment or termination of employment, shall, upon timely
written request of either party be submitted to and resolved by binding arbitration. The
arbitration shall be conducted in San Antonio, Texas. The arbitration shall proceed in accordance
with the National Rules for Resolution of Employment Disputes of the American Arbitration

8

 

Association (“AAA”) in effect at the time the claim or dispute arose, unless other rules are agreed
upon by the parties. Unless otherwise agreed to by the parties in writing, the arbitration shall be
conducted by one arbitrator who is a member of the AAA and who is selected pursuant to the methods
set out in the National Rules for Resolution of Employment Disputes of the AAA. Any claims received
after the applicable/relevant statute of limitations period has passed shall be deemed null and
void. The award of the arbitrator shall be a reasoned award with findings of fact and conclusions
of law. Either party may bring an action in any court of competent jurisdiction to compel
arbitration under this Agreement, to enforce an arbitration award, and to vacate an arbitration
award. However, in actions seeking to vacate an award, the standard of review to be applied by said
court to the arbitrator’s findings of fact and conclusions of law will be the same as that applied
by an appellate court reviewing a decision of a trial court sitting without a jury. The Company
will pay the actual costs of arbitration excluding attorney’s fees. Each party will pay its own
attorneys fees and other costs incurred by their respective attorneys. A breach or threat of breach
of this Agreement by either party to this Agreement shall give the non-breaching party the right to
seek a temporary restraining order and a preliminary or permanent injunction in the appropriate
court to enjoin the breaching party from violating this Agreement in order to prevent immediate and
irreparable harm to the non-breaching party.

16. REPRESENTATIONS AND WARRANTIES OF THE EMPLOYEE. The Employee represents and warrants to the
Company that he is under no contractual or other restriction which is inconsistent with the
execution of this Agreement, the performance of his duties hereunder or the other rights of Company
hereunder. The Employee also represents and warrants to the Company that he is under no physical or
mental disability that would hinder the performance of his duties under this Agreement.

17. SECTION 409A COMPLIANCE. Payments under this Agreement (the “Payments”) shall be designed and
operated in such a manner that they are either exempt from the application of, or comply with, the
requirements of Section 409A, the Regulations, applicable case law and administrative guidance. All
Payments shall be, under all circumstances, deemed to come from an unfunded plan. Further,
notwithstanding any provision in this Agreement to the contrary, all Payments subject to
Section 409A will not be accelerated in time or schedule. Employee and Company will not be able to
change the designated time or form of any Payments subject to Section 409A. In addition, all
Severance Payments that are deferred compensation and subject to Section 409A will only be payable
upon a “separation from service” (as that term is defined at Section 1.409A-1(h) of the Treasury
Regulations) from the Company and from all other corporations and trades or businesses, if any,
that would be treated as a single “service recipient” with the Company under Section 1.409A-1(h)(3)
of the Treasury Regulations. All references in this Agreement to a termination of employment and
correlative terms shall be construed to require a “separation from service.”

18. MISCELLANEOUS. This Agreement contains the entire agreement of the parties relating to the
subject matter hereof. This Agreement supersedes any prior written or oral agreements or
understandings between the parties relating to the subject matter hereof. No modification or
amendment of this Agreement shall be valid unless in writing and signed by or on behalf of the
parties hereto. The failure of a party to require performance of any provision of this Agreement
shall in no manner affect the right of such party at a later time to enforce any provision of this
Agreement. A waiver of the breach of any term or condition of this Agreement

9

 

shall not be deemed to constitute a waiver of any subsequent breach of the same or any other term
or condition. This Agreement is intended to be performed in accordance with, and only to the extent
permitted by, all applicable laws, ordinances, rules and regulations. If any provision of this
Agreement, or the application thereof to any person or circumstance, shall, for any reason and to
any extent, be held invalid or unenforceable, such invalidity and unenforceability shall not affect
the remaining provisions hereof or the application of such provisions to other persons or
circumstances, all of which shall be enforced to the greatest extent permitted by law. The headings
in this Agreement are inserted for convenience of reference only and shall not be a part of or
control or affect the meaning of any provision hereof.

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement as of the date
first written above, with the express understanding that this Agreement is subject to (i) closing
of the amended merger agreement dated May 13, 2008, and (ii) formal approval by the Board of
Directors of CCU and CC Media Holdings, Inc.

	 	 	 	 	 
	DATE: 6-30-08 	JOHN HOGAN

 	 
	 	/s/ John Hogan
 	 
	 	 	 
	 	 	 
	 
	DATE: 6-30-08 	CLEAR CHANNEL BROADCASTING, INC.

 	 
	 	By:  	/s/ Mark P. Mays
 	 
	 	 	Name:  	MARK P. MAYS 	 
	 	 	Title:  	 Director, Clear Channel Broadcasting, Inc. and 

Chief Executive
Officer, Clear Channel Communications, Inc. 	 
	 

10

 

EXHIBIT
A – PERFORMANCE BONUS CALCULATION JOHN HOGAN

11

 

Exhibit A — Performance Bonus

     The Employee’s performance objectives will be established by the Board or its Compensation
Committee no later than the earlier of the date that is ninety (90) days after the commencement of
the performance period or the day prior to the date on which twenty-five percent (25%) of the
performance period has elapsed. The performance period will be the calendar year or such other
shorter or longer period designated by the Committee during which performance will be measured in
order to determine the Employee’s entitlement to receive payment of a Performance Bonus.

     When setting the Employee’s performance objectives, the Committee shall specify the level or levels
of performance required to be attained with respect to each objective in order that the Employee
shall become entitled to receive payment of a Performance Bonus. The aggregate Target level of
compensation which may be earned when all of the Employee’s performance objectives are achieved
shall be not less than $1,000,000 when the performance period is a calendar year. The minimum
aggregate Target level of compensation shall vary on a pro rata basis for performance periods
shorter or longer than a calendar year.

     Performance objectives may be expressed in terms of any of the following business criteria: revenue
growth, earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA growth,
operating income before depreciation and amortization and non-cash compensation expense
(“OIBDAN”), OIBDAN growth, funds from operations, funds from operations per share and per share
growth, cash available for distribution, cash available for distribution per share and per share
growth, operating income and operating income growth, net earnings, earnings per share and per
share growth, return on equity, return on assets, share price performance on an absolute basis and
relative to an index, improvements in attainment of expense levels, improvements in ratings,
implementing or completion of critical projects, or improvement in cash-flow (before or after tax).
These objectives may be measured over a periodic, annual, cumulative or average basis and may be
established on a corporate-wide basis or established with respect to one or more operating units,
divisions, subsidiaries, acquired businesses, minority investments, partnerships or joint ventures.

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