8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 8, 2008

WESTWOOD ONE, INC.
(Exact name of registrant as specified in its charter)

Delaware	001-14691	95-3980449
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

40 West 57th Street, 5th Floor New York, NY	10019
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 641-2000

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 5 Corporate Governance and Management

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(b) On January 8, 2008, Peter Kosann ceased serving as Chief Executive Officer (“CEO”) of Westwood One, Inc. (the “Company” or “Westwood”) and on January 9, 2008, Mr. Kosann resigned from the Company’s Board of Directors (the “Board”) in connection with the appointment of a new CEO as described in (c) below.

(c) Thomas F.X. Beusse was appointed President and CEO of Westwood effective January 8, 2008. Under the terms of a Consent Agreement, CBS Radio, Inc. (“CBS Radio”) has agreed, pursuant to its existing agreement with the Company to manage Westwood (the “Management Agreement”), to have Mr. Beusse serve as the Company’s CEO. While Mr. Beusse will be an employee of the Company, all costs and expenses of Mr. Beusse’s employment with the Company will be reimbursed by CBS Radio until the earlier of the: (i) expiration of the term of the Management Agreement, and (ii) closing of the transactions set forth in the Master Agreement entered into between Westwood and CBS Radio on October 2, 2007. A copy of the Company’s Consent Agreement with CBS Radio is attached hereto as Exhibit 10.1. A copy of the Management Agreement was previously filed with the Securities and Exchange Commission (the “SEC”) as Exhibit 10.17 to its Current Report on Form 8-K filed on June 4, 1999 and the amendment thereto was filed with the SEC as Annex A to the Company’s proxy statement on April 25, 2002. A copy of the Master Agreement was previously filed with the SEC on December 21, 2007 as Exhibit 2.1 to the Company’s proxy statement.

Mr. Beusse and the Company have executed an employment agreement for Mr. Beusse to serve as the Company’s CEO with a term of three years, at an annual base salary of $700,000. Mr. Beusse will be eligible for an annual discretionary bonus of up to $700,000 (i.e., 100% of his annual base salary) for each of 2008, 2009 and 2010, provided that Mr. Beusse will receive not less than $300,000 in annual bonus for 2008. On January 8, 2008, Mr. Beusse was granted two stock options to purchase an aggregate of 1,000,000 shares of Company common stock (i.e., 500,000 shares per stock option), each of which generally will vest in equal one-third increments on January 8, 2009, 2010 and 2011, except in the case of certain termination events as described in more detail in Mr. Beusse’s employment agreement, a copy of which is attached hereto as Exhibit 10.2. One stock option to purchase 500,000 shares of Company common stock will be issued pursuant to the Company’s 2005 Equity Compensation Plan (the “Equity Plan”); and the other stock option to purchase 500,000 shares of Company common stock will be issued outside of the Equity Plan as an inducement grant in accordance with the rules of the New York Stock Exchange. For each of calendar years 2009 and 2010, Mr. Beusse will receive stock options to purchase up to 625,000 shares of Company common stock based on the achievement of performance goals as determined by the Compensation Committee of the Board.

In the case of a termination of Mr. Beusse’s employment by the Company other than for a “cause event,” or by Mr. Beusse for “good reason” (each, as defined in the employment agreement), Mr. Beusse generally will be entitled to the following severance benefits:

• continued payment of an amount equal to two times the sum of his base salary plus $250,000 (i.e., $1,900,000 in the aggregate), payable in equal periodic installments for two years following such termination;

• the minimum 2008 bonus ($300,000) to the extent not already paid as of the date of termination;

• if such termination occurs prior to January 8, 2009, one-third of each of the two stock options to purchase an aggregate of 1,000,000 shares of Company common stock (as described above) will immediately vest as of the date of termination and will be exercisable for the period that is the longer of (x) the date of such termination through January 8, 2009, and (y) ninety days from the date of such termination; and

• continued health benefits at the active employee rate for a period of eighteen months following termination.

In the case of a termination of Mr. Beusse’s employment by the Company other than for a “cause event,” or by Mr. Beusse for “good reason” (each, as defined in the employment agreement), upon or within twenty-four months following a “change in control” (as defined in the employment agreement), then Mr. Beusse generally will be entitled to the severance benefits described above, plus the following benefits:

• full vesting and immediate exercisability of all outstanding equity awards held by Mr. Beusse; and

• a 280G gross-up payment to indemnify Mr. Beusse for the effect of any excise tax imposed by Section 4999 of the Internal Revenue Code as described in more detail in Mr. Beusse’s employment agreement.

A copy of the press release announcing Mr. Beusse’s appointment is furnished herewith as Exhibit 99.1 and is incorporated by reference herein in its entirety. A copy of the Company’s employment agreement with Mr. Beusse is attached hereto as Exhibit 10.2, the terms of which are incorporated by reference herein in their entirety. A copy of the press release announcing the inducement grant to Mr. Beusse is attached hereto as Exhibit 99.2 and the form of the stock option used for such grant is attached hereto as Exhibit 10.3.

Mr. Beusse, 43, will serve as the Company’s President and CEO. From January 2006 to March 2007, he served as the President of Time4 Media, a former division of Time Inc. From March 2001 to October 2005, he held various positions at Rodale, Inc., ranging from Senior Vice President of Rodale Sports Group (March 2001 to November 2001) to President Men’s Health/Sports Content Group (December 2001 to December 2004) and President of Magazine Publishing until October 2005, at which time the division was sold by Time Inc.

(d) On January 8, 2008, the Board appointed Thomas F.X. Beusse as a director of the Company in connection with his appointment as the Company’s CEO, effective upon Mr. Kosann’s resignation from the Board which occurred on January 9, 2008. Mr. Beusse has not been named to serve on any committees of the Board.

(e) On January 8, 2008, the Board approved Amendment No. 3 (the “Amendment 3”) to the Company’s employment agreement with the Chairman of the Board, Norman J. Pattiz (“Pattiz”), made as of April 29, 1998 and amended as of October 27, 2003 and November 28, 2005 (as amended, including by Amendment 3, the “Pattiz Agreement”). Amendment 3 extends the term of the Pattiz Agreement for an additional period beginning December 1, 2008 and continuing through June 15, 2009 (the “Extended Term”). In connection therewith and Mr. Pattiz’s agreement to continue to provide services in connection with the Company’s hiring of a new CEO, Mr. Pattiz will receive a nonqualified stock option (the “2008 Stock Option”) to purchase 250,000 shares of Company common stock that generally will vest in equal one-third increments on January 8, 2009, 2010 and 2011, except in the case of certain termination events as described in more detail in the Pattiz Agreement. The 2008 Stock Option will be issued pursuant to the Equity Plan. Upon a “change in control” (as defined in Amendment 3), the 2008 Stock Option will become fully vested. If Mr. Pattiz is terminated without “cause” (as defined in the Pattiz Agreement) or if Mr. Pattiz terminates his employment due to an adverse change in his title as Chairman, in each case, prior to January 8, 2009, one-third (1/3) of the 2008 Stock Option will vest immediately as of the date of such termination and will be exercisable until ninety days following the earlier of Mr. Pattiz’s voluntary termination of service and November 30, 2015.

As part of Amendment 3, the non-competition and unfair competition provisions of the Pattiz Agreement will cease to apply to Mr. Pattiz upon the earlier of June 15, 2009 and the effective date of Mr. Pattiz’s termination prior to the expiration of the Extended Term. The Company will continue to engage Mr. Pattiz as a part-time employee and/or consultant (at the Company’s option) during a “Continued Engagement Period” (as defined in the Pattiz Agreement) through November 30, 2015, or such earlier time as Mr. Pattiz voluntarily terminates his services with the Company. Mr. Pattiz’s stock options will continue to vest during the Continued Engagement Period. However, during the Continued Engagement Period, Mr. Pattiz’s non-solicitation obligations will be limited to prohibit Mr. Pattiz from soliciting, employing, hiring or engaging employees, consultants and voice talent who are providing services to the Company or its related entities on the earlier of June 15, 2009 and the effective date of Mr. Pattiz’s termination prior to the expiration of the Extended Term.

A copy of the Amendment 3 is attached hereto as Exhibit 10.4, the terms of which are incorporated by reference herein in their entirety. Except as expressly provided in the Amendment 3, the Pattiz Agreement was not modified and will continue in full force and effect.

A copy of the Pattiz Agreement was previously filed with the SEC as Exhibit 10.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1998; a copy of Amendment No. 1 thereto was previously filed with the SEC as Exhibit 10.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003; and a copy of Amendment No. 2 thereto was previously filed with the SEC as Exhibit 99.1 to the Company’s Current Report on Form 8-K dated November 30, 2005.

On January 8, 2008, the Compensation Committee approved the awards of stock options as described above to Messrs. Beusse and Pattiz. A copy of the Company’s form Stock Option Agreement for non-director participants was previously filed with the SEC as Exhibit 99.2 to the Company’s 8-K on December 9, 2005. A copy of the Equity Plan was previously filed with the SEC as Exhibit 10.2 to the Company’s 8-K on May 25, 2005.

Section 9 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

The following is a list of the exhibits filed as a part of this Form 8-K:

Exhibit
No.	Description of Exhibit
10.1	Consent Agreement, dated as of January 8, 2008, made by and among CBS Radio Inc., Westwood One, Inc. and Thomas F.X. Beusse.
10.2	Employment Agreement, effective as of January 8, 2008, by and between the Company and Thomas F.X. Beusse.
10.3	Stand-Alone Stock Option Agreement, dated as of January 8, 2008, by and between Westwood One, Inc. and Thomas F.X. Beusse.
10.4	Amendment No. 3, effective January 8, 2008, to the employment agreement by and between Westwood One, Inc. and Norman Pattiz, dated as of April 29, 1998, as amended.
99.1	Press Release, dated January 8, 2008, announcing the appointment of Thomas F.X. Beusse as President and Chief Executive Officer, replacing Peter Kosann.
99.2	Press Release, dated January 9, 2008, announcing the inducement grant of a non-qualified stock option made to Mr. Beusse in connection with his appointment as President and Chief Executive Officer.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WESTWOOD ONE, INC.

Date: January 10, 2008

By: /s/ David Hillman                            
Name: David Hillman
Title: Chief Administrative Officer; EVP, Business Affairs;
General Counsel and Secretary

EXHIBIT INDEX

Current Report on Form 8-K
dated January 8, 2008

Westwood One, Inc.

Exhibit
No.	Description of Exhibit
10.1	Consent Agreement, dated as of January 8, 2008, made by and among CBS Radio Inc., Westwood One, Inc. and Thomas F.X. Beusse.
10.2	Employment Agreement, effective as of January 8, 2008, by and between the Company and Thomas F.X. Beusse.
10.3	Stand-Alone Stock Option Agreement, dated as of January 8, 2008, by and between Westwood One, Inc. and Thomas F.X. Beusse.
10.4	Amendment No. 3, effective January 8, 2008, to the employment agreement by and between Westwood One, Inc. and Norman Pattiz, dated as of April 29, 1998, as amended.
99.1	Press Release, dated January 8, 2008, announcing the appointment of Thomas F.X. Beusse as President and Chief Executive Officer, replacing Peter Kosann.
99.2	Press Release, dated January 9, 2008, announcing the inducement grant of a non-qualified stock option made to Mr. Beusse in connection with his appointment as President and Chief Executive Officer.

EX-10.1

Exhibit 10.1

EXECUTION VERSION

CONSENT AGREEMENT

THIS CONSENT AGREEMENT (this “Agreement”), dated as of January 8, 2008, is made by and between CBS Radio Inc. (“CBS Radio”), Westwood One, Inc., a Delaware corporation (“Westwood One”) and Thomas F.X. Beusse (“Beusse”).

WHEREAS, CBS Radio manages Westwood One pursuant to a management agreement, as previously amended, having a term running through March 31, 2009 (the “Management Agreement”);

WHEREAS, Westwood One wishes to enter into an employment agreement with Beusse, to serve as its Chief Executive Officer, substantially in the form attached hereto as Exhibit A (the “Employment Agreement”);

WHEREAS, pursuant to the Management Agreement and in accordance with this Agreement, CBS Radio is willing to have Beusse serve as the new Chief Executive Officer of Westwood One; and

WHEREAS, CBS Radio, Beusse and Westwood One wish to set forth their respective rights and obligations with respect to the Employment Agreement.

NOW, THEREFORE, in consideration of the premises and the respective covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby acknowledge and agree to the following:

1. CBS Radio hereby:

(a) Agrees, pursuant to the Management Agreement, to have Beusse serve as the new Chief Executive Officer of Westwood One commencing on January 8, 2008; and

(b) Agrees to reimburse Westwood One (subject to Westwood One’s compliance with the Management Agreement) for all costs and expenses incurred by Westwood One under the Employment Agreement (for the following periods) until the earlier of (i) the expiration of the term of the Management Agreement, and (ii) the closing of the transactions set forth in the Master Agreement between CBS Radio and Westwood One executed on October 2, 2007 (such earlier date to be referred to as the “Termination Date”). Notwithstanding the foregoing, CBS Radio shall not be required to reimburse Westwood One for (a) any contractual severance or termination obligations under the Employment Agreement (and Westwood One will indemnify, defend and hold CBS Radio harmless from the same) other than to the extent that Beusse is terminated by Westwood One prior to the Termination Date at the written request of CBS Radio, (b) any stock or equity related awards, (c) any third party broker’s or finder’s fees in connection with Beusse’s hiring, and (d) any travel and business expenses.

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2. The parties agree that pursuant to the Management Agreement and through the Termination Date, Beusse shall take direction from and report to both (a) the Board of Directors of Westwood One pursuant to the terms of the Employment Agreement, and (b) the Chief Executive Officer of CBS Radio or his designee (the “CBS Radio CEO”); provided, however, that if Beusse receives directions from both Westwood One and the CBS Radio CEO that conflict with each other, Beusse shall be obligated to follow the directions from Westwood One and not those of the CBS Radio CEO. Furthermore, CBS Radio will have no responsibility for any matter where Beusse has followed the direction of the Board of Directors of Westwood One in such conflict scenario and Westwood One will indemnify, defend and hold CBS Radio harmless for any loss resulting from such matter. Any failure by Beusse to follow the conflicting directions of the CBS Radio CEO will not provide a basis for Westwood One to terminate Beusse for a “Cause Event” (as defined in the Employment Agreement), although the parties acknowledge that nothing herein shall prohibit CBS Radio from requesting Westwood One to terminate Beusse at any time through the Termination Date in accordance with the Management Agreement. Beusse and Westwood One agree that to the extent necessary, this paragraph 2 shall constitute an amendment to the Employment Agreement, and all other terms and conditions of the Employment Agreement are hereby ratified and confirmed and will remain in full force and effect. The parties agree that prior to the Termination Date, there will be no amendment to the Employment Agreement without the written approval of all three parties to this Agreement.

3. Westwood One, by and through its Board of Directors, agrees and acknowledges that paragraphs 1 and 2 above are consistent with and in compliance with CBS Radio’s responsibilities and duties under the Management Agreement and that Sections 1.8, 1.9 and 1.10 of the Management Agreement shall fully apply to Beusse in the same manner as if Beusse were an employee of CBS Radio. Westwood One and CBS Radio agree that to the extent necessary, this Agreement shall constitute an amendment to the Management Agreement and all other terms and conditions of the Management Agreement are hereby ratified and confirmed and will remain in full force and effect.

4. Beusse agrees that in consideration for CBS Radio’s consent to this Agreement, CBS Radio shall be entitled to and Beusse hereby grants to CBS Radio the following rights under the Employment Agreement:

(a) Protection of CBS Radio’s Confidential Information (as defined in the Employment Agreement) to the same extent as applicable to Westwood One pursuant to Section 9 of the Employment Agreement;

(b) Copies of all notices from or to Beusse pursuant to Section 17 of the Employment Agreement at the CBS Radio address found below;

(c) The provisions of Sections 21 and 22 of the Employment Agreement; and

(d) The benefits of the Release (found as Exhibit A to the Employment Agreement), to the same extent granted to Westwood One.

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5. Governing Law; Entire Agreement. This Agreement shall be governed in all respects, whether as to its validity, construction, capacity, performance, or otherwise, by the laws of the State of New York, without regard to its principles of conflict of laws. This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof, and supersedes any and all prior agreements or understandings among the parties hereto with respect to the subject matter hereof, whether written or oral.

6. Successors and Assigns. This Agreement is binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns.

[End of text – signature page follows]

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

CBS RADIO INC.

By: /s/ Louis J. Briskman                                                 

Name: Louis J. Briskman                                                  

Title: V.P.                                                                             

Address: Attn: General Counsel
CBS Corporation
51 West 52 Street
New York, NY 10019-6188

WESTWOOD ONE, INC.

By: /s/ David Hillman                                                       

Name: David Hillman                                                        

Title: CAO & General Counsel                                        

/s/ Thomas F.X. Beusse                                                   
Thomas F.X. Beusse

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EXHIBIT A

EMPLOYMENT AGREEMENT

[Intentionally omitted.]

A-1

EX-10.2

Exhibit 10.2

EXECUTION VERSION

EMPLOYMENT AGREEMENT

This agreement (“Agreement”) is entered into by and between Thomas F.X. Beusse (“Employee”) and Westwood One, Inc., a Delaware corporation (the “Company”).

WITNESSETH:

WHEREAS, the Company is in the business of selling radio broadcast advertising, and developing, producing and broadcasting radio programming and traffic, news, sports, weather and other information reports; and

WHEREAS, Employee has extensive management experience; and

WHEREAS, the Company desires to engage the services of Employee to serve as the Chief Executive Officer of the Company on the terms and conditions herein contained.

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

1. Employment. The Company hereby employs Employee, and Employee accepts such employment, and agrees to devote Employee’s full business time and efforts to the interests of the Company upon the terms and conditions hereinafter set forth.

2. Term of Employment. Subject to the provisions for termination and extension hereinafter provided, Employee’s term of employment by the Company shall commence on January 8, 2008 (the “Effective Date”) and shall continue in effect until the third anniversary thereof (the “Initial Term”). Unless written notice of non-renewal is provided by either party at least 90 days prior to the end of the Initial Term, subject to the provisions for termination hereinafter provided, Employee’s employment hereunder shall continue on a month-to-month basis until such time as either party shall deliver 90 days written termination notice to the other party. The period from the Effective Date through the termination of Employee’s employment under this Agreement shall be referred to as the “Employment Period.”

3. Services to be Rendered by Employee.

(a) During the Employment Period, Employee shall serve as the Chief Executive Officer of the Company and shall report to the Company’s Board of Directors (the “Board of Directors”). Subject to the direction of the Board of Directors, Employee shall perform such duties as are commensurate with Employee’s position with the Company. Employee shall devote all of Employee’s business time, energy and ability to the proper and efficient conduct of the Company’s business, provided that the foregoing shall not be violated by Employee’s absence due to paid vacation or sick leave and shall not prevent Employee from (i) serving on the boards of directors of non-profit organizations and, with the prior written approval of the Board of Directors (which shall not be unreasonably withheld), other for profit companies, (ii) participating in charitable, civic, educational, professional, community or industry affairs, or (iii) managing Employee’s passive personal investments so long as such activities do not interfere, conflict, or create an appearance of conflict with Employee’s duties hereunder or create a potential business or fiduciary conflict. Employee shall observe and comply with all reasonable lawful directions and instructions by and on the part of the Board of Directors and endeavor to promote the interests of the Company.

(b) The Board of Directors shall take such action as may be necessary to appoint or elect Employee as a member of the Board of Directors as of the Effective Date. Thereafter, during the Employment Period, the Board of Directors shall nominate Employee for re-election as a member of the Board of Directors at the expiration of the then current term, provided that the foregoing shall not be required to the extent prohibited by legal or regulatory requirements. Employee acknowledges and understands that the Company has a separate Chairman of the Board of Directors.

(c) Unless otherwise determined by the Company (other than as provided in Section 7(c)(iii)), Employee shall be employed at and report into the Company’s offices in the New York City metropolitan area; provided that Employee shall may required to travel on business as necessary.

(d) Employee acknowledges that Employee has received a copy of the Company’s Sexual Harassment Policies and Procedures, Code of Ethics and Conflicts of Interest policy, and understands and has acknowledged such policies.

4. Compensation.

(a) Base Salary. For the services to be rendered by Employee, during the Employment Term, the Company shall pay Employee, and Employee agrees to accept, a base salary at a rate of seven hundred thousand dollars ($700,000.00) per annum (the “Base Salary”).

(b) Discretionary Bonus. Employee shall be eligible for an annual discretionary cash bonus of up to 100% of the Base Salary (each an “Annual Bonus”) as determined by the Compensation Committee of the Board of Directors (the “Compensation Committee”); provided, however, that Employee’s Annual Bonus for calendar year 2008 shall not be less than three hundred thousand dollars ($300,000) (the “Minimum 2008 Bonus”). Each Annual Bonus shall be subject to the achievement of performance goals for the applicable calendar year as are established by the Compensation Committee in its discretion following consultation with Employee, which shall include a component that is subject to subjective personal goals set by the Compensation Committee. Any Annual Bonus shall be payable in accordance with the Company’s normal payroll practices in the calendar year following the calendar year for which it is earned. Subject to the provisions of Section 7, Employee shall not be eligible for any Annual Bonus for a calendar year (including the Minimum 2008 Bonus), pro-rated or otherwise, if (i) Employee is not an employee of the Company through the last day of the applicable calendar year, or (ii) if Employee has materially breached this Agreement, and shall have no claim for any Annual Bonus for which such requirements are not satisfied.

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(c) Stock Options. As a material inducement for Employee to accept the position of Chief Executive Officer and to enter into this Agreement, Employee shall be eligible to receive awards of options to purchase shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), as follows:

(i) On the Effective Date, Employee shall receive an award of options to purchase one million (1,000,000) shares of Common Stock (the “Sign-on Grant”). A portion of the Sign-on Grant may, in the sole discretion of the Compensation Committee, be awarded outside the Equity Plan (as defined below) pursuant to the Company’s standard stock option award agreement with such additional terms consistent with the Equity Plan as may be necessary to account for the fact that such portion of the Sign-on Grant is being made on a stand-alone basis outside the Equity Plan.

(ii) In each of calendar years 2009 and 2010 during the Employment Period, at the time the Company makes equity grants to its other senior officers for such years, Employee shall receive awards of options to purchase up to six hundred twenty-five thousand (625,000) shares of Common Stock in the aggregate based on the achievement of performance goals for the prior year as determined by the Compensation Committee in its sole discretion (the “Annual Grants,” and together with the Sign-on Grant, the “Option Awards”).

The Option Awards shall be awarded under, and shall be subject to the terms and conditions of, the Company’s 2005 Equity Compensation Plan, as may be amended from time to time (the “Equity Plan”) and subject to the provisions of the Company’s standard stock option award agreement which shall contain the Company’s customary provisions, including without limitation, an exercise price equal to the fair market value of the Common Stock on the grant date (as determined in accordance with the Equity Plan) and, subject to Section 7, the standard post-termination exercise periods set forth in the Equity Plan. Subject to Section 7, the Option Awards shall vest annually over a three year period on each anniversary of (i) the Effective Date with respect to the Sign-on Grant with the first tranche vesting on the first anniversary thereof, and (ii) the applicable grant date with respect to the Annual Grants with the first tranche vesting on the first anniversary thereof, subject in each case to Employee’s continuous employment with the Company through each such vesting date and shall have an outside exercise date of ten (10) years from the grant date, subject to earlier termination in certain circumstances. Notwithstanding the foregoing, to the extent necessary, the Annual Grants (other than the Sign-on Grant) shall be subject to approval by the Company’s stockholders of an amendment to the Equity Plan increasing the aggregate and individual number of shares of Common Stock available for grant thereunder. In the event the necessary stockholder approval is not received, Employee shall not be entitled to the Annual Awards to the extent shares of Common Stock are not available for grant under the Equity Plan.

(d) Paydates; Customary Employee Deductions. Employee’s Base Salary shall be payable in accordance with the Company’s normal payroll policies in effect from time to time. For any and all compensation or bonus paid by the Company to Employee, the Company shall be entitled to deduct income tax withholdings, social security and other customary employee deductions in conformity with the Company’s payroll policies in effect from time to time.

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5. Expenses. Subject to compliance by Employee with such policies regarding expenses and expense reimbursement as may be adopted from time to time by the Company, the Company shall reimburse Employee, or cause Employee to be reimbursed, in cash for all reasonable expenses incurred by Employee in connection with the performance of his duties hereunder. To the extent any such reimbursements constitute taxable income to Employee for federal income tax purposes, all such reimbursements shall be paid in accordance with the Company’s policy but in no event later than March 15 of the calendar year next following the calendar year in which the expenses to be reimbursed are incurred.

6. Benefits.

(a) Company Plans; Insurance. During the Employment Period, Employee shall be entitled to participate in all benefit plans, programs, group insurance policies, sick leave and other benefits that may from time to time be established by the Company and generally available to, and on a basis no less favorable to Employee than, the Company’s other senior executive officers (other than the Company’s Chairman), provided that Employee is eligible under the respective provisions thereof.

(b) Vacation. Employee shall be entitled each calendar year to five weeks of paid vacation time in accordance with the prevailing practice of the Company in regard to vacations for its employees. All unused vacation time at the end of any calendar year shall be forfeited and shall not be carried forward for use in any future calendar year.

7. Termination of Employment.

(a) During the Employment Period, the Company shall have the right to terminate the employment of Employee hereunder immediately by giving notice thereof to Employee in the event of any of the following (each a “Cause Event”):

(i)

if Employee has (A) willfully failed or refused to carry out or to perform the reasonable duties required of Employee hereunder or otherwise materially breached any provision of this Agreement (other than Sections 8, 9 and 12 hereof, which are governed by Section 7(a)(iii) hereof), and any such failure, refusal or breach continues for thirty (30) days after written notice from the Company to Employee; (B) willfully breached any statutory or common law duty, including any fiduciary duty owed to the Company; or (C) breached Section 3(d) of this Agreement; which breach materially damages, or could be reasonably expected to materially damage, the Company, its assets or reputation and continues for thirty (30) days after written notice from the Company to Employee;

(ii)

if Employee is convicted of, or enters into a plea of nolo contendere or guilty to, a felony or a crime involving moral turpitude or if Employee has willfully engaged in misconduct, which materially injures or could be reasonably expected to injure the reputation of the Company or otherwise materially adversely affect its interest if Employee were retained as an employee of the Company;

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(iii)

if Employee breaches any of the provisions of Section 8, 9 or 12 hereof or breaches any of the terms or obligations of any other noncompetition and/or confidentiality agreements entered into between Employee and the Company, or the Company’s Related Entities (as defined in Section 20 hereof), if any, other than any inadvertent breach that does not result in harm to the Company, its assets or its reputation; or

(iv)

if Employee steals or embezzles assets of the Company.

For purposes of this provision, no act or failure to act on the part of Employee shall be considered “willful” unless it is done, or omitted to be done, by Employee in bad faith or without a reasonable belief that Employee’s action or omission was in the best interest of the Company.

(b) Employee’s employment with the Company shall automatically terminate (without notice to Employee’s estate) upon the death of Employee. Employee’s employment with the Company may also be terminated upon ten days’ prior written notice by the Company to Employee of a termination due to Disability. For purposes of this Agreement, the term “Disability” shall be defined as Employee becoming unable by reason of physical disability or other incapacity (as may be defined in applicable disability insurance policies) to carry out or to perform the duties required of Employee under this Agreement for either a continuous period of 90 days or 180 days in any 365-day period.

(c) Employee’s employment with the Company may be terminated by Employee upon written notice by Employee to the Company of a termination for Good Reason. For purposes hereof, “Good Reason” shall mean the occurrence of any of the following events:

(i)	a material diminution in Employee’s authority, duties or responsibilities, or any diminution in Employee’s title, including failure to elect Employee as a member of the Board of Directors and any involuntary loss of such position;
(ii)	a material diminution in Employee’s Base Salary;
(iii)	any relocation of Employee’s principal place of employment beyond 50 miles from its then current location; or
(iv)	any other material breach of the Company’s obligations hereunder.

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No termination for Good Reason shall be effective unless (A) Employee gives the Company written notice specifying the Good Reason (the “Good Reason Notice”) within 90 days after the initial existence of the condition, circumstance, or event giving rise to or constituting Good Reason, (B) the Company fails to cure the Good Reason within 30 days after the date of the Good Reason Notice, and (C) the termination of Employee’s employment and “separation from service” with the Company as defined for purposes of Code Section 409A (as defined in Section 23) occurs within two (2) years after the initial existence of the condition, circumstance, or event giving rise to or constituting Good Reason.

(d) Employee’s employment with the Company may terminate upon 90 days’ prior written notice by Employee to the Company of Employee’s voluntary termination of employment without Good Reason (which the Company may, in its sole discretion, make effective earlier than any notice date).

(e) In the event of any termination of Employee’s employment (provided that the benefit described in clause (ii) below shall not be paid in the event of a termination of employment by the Company for Cause), Employee (or Employee’s estate, as the case may be) shall be entitled to receive: (i) the Base Salary herein provided prorated to the date of termination; (ii) any Annual Bonus earned but not yet paid for any completed full calendar year immediately preceding the date of termination; (iii) reimbursement for any unreimbursed expenses properly incurred and paid in accordance with Section 5 through the date of termination; and (iv) Employee’s then present entitlement, if any, under the Company’s employee benefit plans and programs (the “Accrued Amounts”). In the case of a termination of Employee’s employment pursuant to Section 7(a), 7(b) or 7(d), no compensation other than the Accrued Amounts shall be paid to the Employee.

(f) In the event Employee is terminated by the Company for any reason other than for a Cause Event, or by Employee for Good Reason, in either case, prior to a Change in Control (as defined below) of the Company, then Employee shall be entitled to the Accrued Amounts plus, subject to Employee’s executing and not revoking a waiver and general release substantially in the form attached as Exhibit A hereto, which may be modified for changes in law and for consistency with the Company’s standard form required for other senior officers of the Company from time to time (the “Release”), the following:

(i)	subject to Section 23(b), continued payment of an amount equal to two times the sum of (A) the Base Salary, plus (B) $250,000, in equal periodic installments over a period of two years from the date of termination (the “Severance Period”), paid in accordance with the Company’s normal payroll policies as if Employee continued to be an employee of the Company (but off payroll);
(ii)	to the extent not already paid, the Minimum 2008 Bonus, paid in 2009 when the Company otherwise pays bonuses to it senior executive officers;
(iii)	if such termination occurs prior to the first anniversary of the Effective Date, one-third (1/3) of the options granted under the Sign-on Grant shall immediately vest as of the date of termination and shall be exercisable for the period that is the longer of (x) the date of termination through the first anniversary of the Effective Date and (y) 90 days from the date of termination; and

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(iv) subject to Employee’s (x) timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) with respect to the Company’s group health insurance plans in which Employee participated immediately prior to the date of termination (“COBRA Continuation Coverage”), and (y) continued payment of premiums for such plans at the active employee rate (excluding, for purposes of calculating cost, an employee’s ability to pay premiums with pre-tax dollars), the Company shall provide COBRA Continuation Coverage for Employee until the earliest of (A) the end of the Severance Period, (B) Employee ceasing to be eligible under COBRA, (C) eighteen (18) months following the date of termination, and (D) Employee becoming eligible for coverage under the health insurance plan of a subsequent employer.

(g) In the event Employee is terminated by the Company for any reason other than for a Cause Event, or by Employee for Good Reason, in either case, upon, or within 24 months following, a Change in Control (as defined below) of the Company, then Employee shall be entitled to the Accrued Amounts plus, subject to Employee’s executing and not revoking the Release, the following:

(i)	the benefits described in Section 7(f)(i) through 7(f)(iv);
(ii)	all outstanding equity awards held by Employee shall become fully vested and immediately exercisable and shall remain exercisable in accordance with the terms and conditions of the applicable equity plan and award agreements under which they were granted; and
(iii)	to the extent that any amounts payable to Employee hereunder, as well as any other “parachute payments,” as such term is defined under Section 280G of the Code (as defined in Section 23(a)), payable to Employee in connection with Employee’s employment by the Company or any Related Entity, exceed the limitation of Section 280G of the Code such that an excise tax will be imposed under Section 4999 of the Code, the provisions of Exhibit B attached hereto shall apply.

For purposes of this Agreement, the term “Change in Control” shall have the meaning set forth in the Equity Plan, provided, however, that for purposes of this Agreement and the benefits to which Employee would be entitled under Section 12 of the Equity Plan, clause (i) of said definition shall be modified to read as follows: “(i) the acquisition by any Person (as hereinafter defined) of 50% or more of the outstanding Shares (the “Outstanding Company Stock”) (other than an acquisition by the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or any Person that controls, is controlled by or is under common control within the Company or other than a Non-Qualifying Business Combination (as defined below));”.

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(h) The Company shall provide the Release to Employee within seven (7) business days following the date of termination. In order to receive the payments and benefits under Section 7(f) or 7(g) (other than the Accrued Amounts), as applicable, Employee shall be required to sign the Release within 21 or 45 days after the date it is provided to him, as required by applicable law, and not revoke it within the seven day period following the date on which it is signed. All payments delayed pursuant to the foregoing, except to the extent delayed pursuant to Section 23(b), shall be paid to Employee in a lump sum on the first Company payroll date on or following the sixtieth (60^th) day after the date of termination, and any remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

(i) The Company’s payment obligations hereunder are absolute and unconditional and shall not be subject to offset counterclaim, recoupment, defense or any other right the Company may have against Employee or anyone else, except as otherwise provided by applicable law.

8. No Conflict of Interest; Proper Conduct; Restricted Activities.

(a) The Company and Employee acknowledge and agree that the Company has divulged and expects to divulge to Employee certain confidential information and trade secrets relating to the Company’s business, provide information relating to the Company’s customer base and otherwise provide Employee with the ability to injure the Company’s goodwill unless certain reasonable restrictions are imposed upon Employee which are contained in this Section. Employee agrees that such restrictions are reasonable and necessary to protect the goodwill, confidential information and other legitimate business interests of the Company and such restrictions are entered into freely by Employee. Employee acknowledges that the Company’s business and Employee’s responsibilities are nationwide. The confidential information and trade secrets expected to be divulged to Employee shall include information and trade secrets regarding the Company’s business and operations nationwide.

(b) While employed by the Company, Employee shall not compete with the Company, directly or indirectly, either for Employee or as a member of any association, partnership, joint venture, limited liability partnership or limited liability company or other entity, or as a stockholder (except as a stockholder of less than one percent (1%) of the issued and outstanding stock of a publicly-held corporation whose gross assets exceed $100,000,000), investor, officer or director of a corporation, or as an employee, agent, trustee, associate or consultant of any person, association, trust, partnership, joint venture, registered limited liability partnership or limited liability company, corporation or other entity, in any business in competition with that carried on by the Company or its Related Entities. Employee shall use best efforts to comply with all applicable laws and regulations governing the Company and its business, including without limitation, regulations promulgated by the Federal Communications Commission or any other regulatory agency.

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(c) Employee further agrees that, for a period that is equal to (i) the Severance Period, if Employee experiences a termination of employment under Section 7(f) or 7(g), or (ii) one (1) year from and after Employee’s last day of employment under this Agreement, if Employee experiences a termination of employment under any provision hereunder other than Section 7(f) or 7(g) (the “Restricted Period”), regardless of the reason for the termination of Employee’s employment, Employee shall not engage in or carry on, directly or indirectly, either for Employee or as a member of an association, trust, partnership, joint venture, limited liability partnership or limited liability company or other entity, or as a stockholder (other than as a stockholder of less than one percent (1%) of the issued and outstanding stock of a publicly-held corporation, whose gross assets exceed $100,000,000), or as an investor, officer or director of a corporation, or as an employee, agent, trustee, associate or consultant of any person, association, trust, partnership, corporation, joint venture, registered limited liability partnership or limited liability company, or other entity, any Restricted Activity. Restricted Activities shall consist of: (i) providing services to a traffic, news, sports, weather or other information report gathering or broadcast service or to a radio network or syndicator, or any direct or indirect competitor of Westwood or its Related Entities; (ii) soliciting Sponsors and dealing with accounts with respect thereto; (iii) soliciting Affiliates to enter into any contract or arrangement with any person or organization to provide traffic, news, weather, sports or other information report gathering or broadcast services or national or regional radio network or syndicated programming; or (iv) forming or providing operational assistance to any business or a division of any business engaged in the foregoing activities. Notwithstanding the foregoing, the provisions of this Section 8(c) shall not be violated by Employee commencing employment with a subsidiary, affiliate or distinct operating division of any entity that engages in a Restricted Activity so long as Employee and such subsidiary, affiliate or distinct operating division do not engage in any Restricted Activity.

(d) Employee further covenants and agrees that during the Employment Period and the Restricted Period, other than in the good faith performance of his duties hereunder, Employee shall not either individually, or on behalf of any other person, association, trust, partnership, joint venture, limited liability partnership or limited company or other entity as an owner, member, partner, agent, trustee, shareholder, joint venturer or otherwise, directly or indirectly, solicit any customer and/or Sponsor of the Company or its Related Entities in competition with the Company.

(e) Employee further agrees that during the Employment Period and the Restricted Period, other than in the good faith performance of his duties hereunder, Employee shall neither employ nor offer to employ nor solicit employment of any employee or consultant of the Company or its Related Entities.

(f) Employee further agrees that during the Employment Period and the Restricted Period, other than in the good faith performance of his duties hereunder, Employee shall not to solicit, divert or attempt to divert any business, patronage or customer of the Company or its Related Entities to Employee or a competitor or rival of the Company or its Related Entities.

(g) Employee agrees that the limitations set forth herein on Employee’s rights are reasonable and necessary for the protection of the Company and its Related Entities. In this regard, Employee specifically agrees that the limitations as to period of time and geographic area, as well as all other restrictions on Employee’s activities specified herein, are reasonable and necessary for the protection of the Company and its Related Entities.

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(h) Employee agrees that the remedy at law for any breach by Employee of this Section 8 shall be inadequate and that the Company shall be entitled to injunctive relief (without bond or other undertaking).

(i) Employee and Company agree that to the extent a court of competent jurisdiction or appropriate arbitral tribunal finds any of the foregoing covenants to be overly broad based on applicable law, then the parties agree that the court shall reform the covenants to the extent necessary to cause such covenants to be reasonable and enforce such covenants as reformed against Employee.

9. Confidential Information and the Results of Services. Employee acknowledges that the Company has established a valuable and extensive trade in the services it provides, which has been developed at considerable expense to the Company. Employee agrees that, by virtue of the special knowledge that Employee has received or shall receive from the Company, and the relationship of trust and confidence between Employee and the Company, Employee has or shall have certain information and knowledge of the operations of the Company that are confidential and proprietary in nature, including, without limitation, information about Affiliates and Sponsors. Employee agrees that during the Employment Period and at any time thereafter Employee shall not, other than in connection with the good faith performance of Employee’s duties, make use of or disclose, without the prior consent of the Company, Confidential Information (as hereinafter defined) relating to the Company and any of its Related Entities (including, without limitation, its Sponsor lists, its Affiliates, its technical systems, its contracts, its methods of operation, its business plans and opportunities, its strategic plans and its trade secrets), and further, that Employee shall return to the Company upon request and promptly following the termination of Employee’s employment with the Company, all materials in Employee’s possession embodying such Confidential Information and any and all other property of the Company and its Related Entities that is in the possession of Employee. For purposes of this Agreement, “Confidential Information” means information obtained by Employee during Employee’s employment relationship with the Company which concerns the affairs of the Company or its Related Entities and which the Company has requested be held in confidence or could reasonably be expected to desire to be held in confidence, or the disclosure of which would likely be embarrassing, detrimental or disadvantageous to the Company or its Related Entities. Confidential Information, however, shall not include information which Employee can show by written document to be:

(a) Information that is at the time of receipt by Employee in the public domain or is otherwise generally known in the industry or subsequently enters the public domain or becomes generally known in the industry through no fault of Employee;

(b) Information that at any time is received in good faith by Employee from a third party which was lawfully in possession of the same and had the right to disclose the same.

The parties hereto agree that the remedy at law for any breach of Employee’s obligations under this Section 9 would be inadequate and that any enforcing party shall be entitled to injunctive or other equitable relief (without bond or undertaking) in any proceeding which may be brought to enforce any provisions of this Section.

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10. Advertising and Publicity. Employee hereby grants the Company the royalty-free right to use and license others to use Employee’s name, nickname, recorded voice, biographical material, portraits, pictures, and likenesses for advertising purposes and purposes of trade, promotion and publicity in connection with the institutions, services and products for the Company, its Related Entities, Sponsors and Affiliates, such uses to be at such times, in such manner and through such media as the Company may in its sole discretion determine. Such right shall last for so long as Employee is employed by the Company and, in connection with the use or exploitation of any material in which Employee has been involved during Employee’s employment, perpetually thereafter. Employee shall not intentionally authorize or release any advertising or promotional matter or publicity in any form with reference to Employee’s services hereunder, or to the Company’s or its Related Entities’ programs, Sponsors or Affiliates, without the Company’s prior written consent.

11. Work for Hire. Employee agrees that any ideas, concepts, techniques, or computer programs relating to the business or operations of the Company and its Related Entities which are developed by Employee in the course of Employee’s employment hereunder, including each program and announcement prepared for broadcast, and the titles, content, format, idea, theme, script, characteristics, and other attributes thereof, shall be deemed to have been made within the scope of Employee’s employment and therefore constitute works for hire and shall automatically upon their creation become the exclusive property of the Company. To the extent such items are not works for hire under applicable law, Employee assigns them and any and all intangible proprietary rights relating thereto to the Company in their entirety and agrees to execute any and all documents necessary or desired by the Company to reflect the Company’s ownership thereof.

12. Communications Act of 1934. Employee represents and warrants that neither Employee nor, to the best of Employee’s knowledge, information and belief, any other person, has accepted or agreed to accept, or has paid or provided or agreed to pay or provide, any money, service or any other valuable consideration, as defined in Section 507 of the Communications Act of 1934, as amended, for the broadcast of any matter contained in programs. Employee further represents and warrants that, during Employee’s employment, Employee shall comply with all legal requirements.

13. Merger or Reorganization. In the event of any merger, consolidation, dissolution or reorganization of the Company (including but not limited to any reorganization where the Company is not the surviving or resulting entity), or any transfer of all or substantially all of the assets of the Company, the provisions of this Agreement shall inure to the benefit of and shall be binding upon the surviving or resulting partnership or the corporation (or other entity) or person(s) to which such assets shall be transferred.

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14. Remedies. Except as it may elect otherwise, the Company shall have all rights, powers or remedies provided by law or equity for breach of this Agreement available to it, it being understood and agreed that no one of them shall be considered as exclusive of the others or as exclusive of any other rights, powers and remedies allowed by law. The exercise or partial exercise of any right, power or remedy shall neither constitute the election thereof nor the waiver of any other right, power or remedy. Without limiting the generality of the foregoing, Employee agrees that, in addition to all other rights and remedies available at law or in equity, the Company shall be entitled to enforcement of this Agreement in accordance with the principles of equity (without bond or undertaking), the remedy at law being hereby agreed and acknowledged by Employee to be inadequate.

15. Waiver of Breach of Agreement. If either party waives a breach of this Agreement by the other party, that waiver shall not operate or be construed as a waiver of any subsequent breaches.

16. Assignment. The rights of the Company hereunder may, without the consent of Employee, be assigned by the Company to any Related Entity or successor of the Company or any entity which acquires all or substantially all of the Company’s assets. Except as provided in the preceding sentence or in Section 13 hereof, the Company may not assign all or any of its rights, duties or obligations hereunder without the prior written consent of Employee. This Agreement is not assignable by Employee. Any attempt by Employee to assign this Agreement, or any portion thereof, shall be deemed null and void and of no force and effect.

17. Notices. All notices, requests, demands and other communications permitted or required hereunder shall be in writing and shall be deemed to have been duly given if sent by facsimile transmission, upon confirmation of receipt by the sender of such transmission, or if personally delivered or if deposited in the United States mail, first class, postage prepaid, registered or certified, addressed as follows:

(a) If to Employee, at the last address or facsimile number for Employee on the books of the Company.

(b) If to the Company, addressed to:

Westwood One, Inc.
40 West 57^th Street, 15^th Floor
New York, New York 10019
Facsimile: 212.641.2198
Attention: General Counsel

or to such other facsimile number or address as either party hereto may request by written notice as herein provided.

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18. Severability. Any provision hereof prohibited by or unenforceable under any applicable law of any jurisdiction shall as to such jurisdiction be deemed ineffective and deleted herefrom without affecting any other provision of this Agreement. It is the desire of the parties hereto that this Agreement be enforced to the maximum extent permitted by law, and should any provision contained herein be held unenforceable, the parties hereby agree and consent that such provision shall be reformed to make it a valid and enforceable provision to the maximum extent permitted by law.

19. Title and Headings; Exhibits. Titles and headings to Sections hereof are for the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof.

Any and all exhibits referred to herein are, by such reference, incorporated herein and made a part hereof.

20. Certain Definitions. As used in this Agreement, the following capitalized terms shall have the meanings indicated:

(a) Affiliates. Any organization, entity or person with whom the Company or any of the Company’s Related Entities has or had a contract or other arrangement to provide traffic, news, weather, sports, entertainment or other information or national or regional radio network or syndicated programming, whether by broadcast, computer or any other means.

(b) Sponsor(s). Any and all client advertisers of the Company or its Related Entities including without limitation advertisers whose commercial material is to be, is or was incorporated in any one or more of the Company’s programs or announcements, live or recorded, broadcast over the facilities of the Company, by the Company, or pursuant to an arrangement with an Affiliate.

(c) Related Entity or Related Entities. Any entity (or entities) that directly or indirectly controls, is controlled by, or is under common control with the Company (or its successor or assign), including but not limited to Westwood One Radio Networks, Inc., Westwood One Radio, Inc., Metro Networks Communications, Inc. and Metro Networks Communications, Limited Partnership. The term “entity” as used in this Section 20(c) means an individual, corporation, partnership, joint venture, limited liability partnership or limited liability company, trust, unincorporated organization, association or other entity. As used in this Section 20(c), the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise.

21. Choice of Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

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22. Arbitration. The parties hereby agree that any and all claims or controversies relating to Employee’s employment with the Company, or termination thereof, including but not limited to claims for breach of contract, tort, unlawful discrimination or harassment (as well as any claims arising under Title VII, the Americans with Disabilities Act, and the Age Discrimination in Employment Act), and any violation of any state or federal law (“Arbitrable Claims”), except for equitable relief sought by a party in aid of arbitration, shall be resolved by arbitration in accordance with the then applicable JAMS Employment Arbitration Rules And Procedures. However, claims under applicable workers’ compensation laws or the National Labor Relations Act shall not be subject to arbitration. Arbitration under this Agreement shall be the exclusive remedy for all Arbitrable Claims and shall be final and binding on all parties. Unless the parties mutually agree otherwise, the Arbitrator shall be selected from a panel provided by JAMS and the arbitration shall be held in New York County, New York. Any court having jurisdiction thereof may enter judgment on the award rendered by the arbitrator(s). THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY OF ANY MATTERS SUBJECT TO ARBITRATION UNDER THIS AGREEMENT.

23. Section 409A of the Code.

(a) Although the Company does not guarantee the tax treatment of any particular payment or benefit, it is intended that the provisions of this Agreement provide for payments or benefits that either comply with, or are exempt from, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”), and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.

(b) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” If Employee is deemed on the date of termination of his employment to be a “specified employee”, within the meaning of that term under Code Section 409A(a)(2)(B) and using the identification methodology selected by the Company from time to time, or if none, the default methodology, then with regard to any payment or the providing of any benefit made subject to this Section 23(b), to the extent required to be delayed in compliance with Code Section 409A(a)(2)(B), such payment or benefit shall not be made or provided prior to the earlier of (i) the expiration of the six-month period measured from the date of Employee’s “separation from service” and (ii) the date of Employee’s death. On the first day of the seventh month following the date of Employee’s “separation from service” or, if earlier, on the date of his death, all payments delayed pursuant to this Section 23(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Employee in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

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24. Indemnification. The Company hereby agrees to indemnify Employee and hold Employee harmless to the extent provided under the By-Laws of the Company.

25. Liability Insurance. The Company shall cover Employee under directors’ and officers’ liability insurance both during and, while potential liability exists, after the term of this Agreement in the same amount and to the same extent as the Company covers its other officers and directors.

26. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, executors, successors and permitted assigns.

27. Entire Agreement and Amendment. This Agreement supersedes all prior understandings and agreements between the parties (including the Company’s Related Entities) with respect to the subject matter hereof. This Agreement contains the entire agreement of the parties with respect to the subject matter covered hereby and may be amended, waived or terminated only by an instrument in writing executed by both parties hereto.

28. Execution by Company. Submission of this Agreement to Employee, or Employee’s agents or attorneys, for examination or signature does not constitute or imply an offer of employment, and this Agreement shall have no binding effect until execution hereof by both the Company and Employee.

29. No Inference Against Author. No provision of this Agreement shall be interpreted against any party because such party or its legal representative drafted such provision.

30. Counterparts. This Agreement may be executed in counterparts (including by facsimile or PDF) which, when taken together, shall constitute one and the same agreement of the parties.

31. Survival. The provisions contained in Sections 7 through 18, 21 through 25 and this Section 31 shall survive the termination or expiration of the Employment Period and the Employee’s employment with the Company and shall be fully enforceable thereafter.

32. Legal Fees. The Company will reimburse Employee in an amount up to $20,000 for the reasonable attorneys’ fees (based on non-premium, standard rates for time actually billed) incurred by him in connection with the current negotiation and preparation of this Agreement.

[End of text — signature page follows]

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IN WITNESS WHEREOF, this Agreement is EXECUTED as of the 8th day of January, 2008, to be EFFECTIVE FOR ALL PURPOSES as of the Effective Date.

“COMPANY”
WESTWOOD ONE, INC.
By:	/s/ David Hillman
Printed Name: David Hillman
Title: CAO & General Counsel
“EMPLOYEE”
/s/ Thomas F.X. Beusse
Thomas F.X. Beusse

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EXHIBIT A

FORM OF RELEASE

For good and valuable consideration received in connection with my termination of employment with Westwood One, Inc., a Delaware corporation (the “Company”), pursuant to Section 7 of my employment agreement with the Company dated January 8, 2008 (the “Employment Agreement”), I, THOMAS F.X. BEUSSE, do hereby release and forever discharge and covenant not to sue the Company, the Related Entities (as defined in the Employment Agreement) and their respective subsidiaries and affiliates and their respective directors, members, partners, officers, managers, employees, agents, stockholders, successors and assigns (both individually and in their official capacities) and its and their predecessors or successors (collectively, the “Releasees”), from any and all actions, causes of action, covenants, contracts, claims, demands, suits, and liabilities whatsoever, which I ever had or now have or which I or any of my heirs, executors, administrators and assigns hereafter can, shall or may have by reason of or relating to my employment with the Company as of the effective date of this general release (this “General Release”).

By signing this General Release, I am providing a complete waiver of all claims against the Releasees that may have arisen, whether known or unknown, up until the effective date of this General Release. This includes, but is not limited to, claims based on Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Age Discrimination in Employment Act of 1967 (including the Older Workers Benefit Protection Act) (the “ADEA”), the Americans With Disabilities Act, the Fair Labor Standards Act, the Equal Pay Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act of 1974 (“ERISA”) (except as to claims pertaining to vested benefits under employee benefit plans covered by ERISA and maintained by the Releasees), and all applicable amendments to the foregoing acts and laws, or any common law, public policy, contract (whether oral or written, express or implied) or tort law, and any other local, state or Federal law, regulation or ordinance having any bearing whatsoever on the terms and conditions of my employment. This General Release shall not, however, constitute a waiver of: (i) my rights under any employee benefit plan currently maintained by the Company; (ii) my rights under the Employment Agreement intended to survive my termination of employment; (iii) my rights under the Company’s certificate of incorporation, By-Laws, insurance policies or other written agreements with respect to indemnification; or (iv) any claims to enforce rights arising under the ADEA or other civil rights statute after the effective date of this General Release. I hereby reaffirm my obligations under Sections 8 through 12 of the Employment Agreement, and understand that such provisions shall be fully enforceable in accordance with the terms and conditions of the Employment Agreement following my termination of employment with the Company.

I further agree, promise and covenant that, to the maximum extent permitted by law neither, I, nor any person, organization, or other entity acting on my behalf has or will file, charge, claim, sue, or cause or permit to be filed, charged or claimed, any action for damages or other relief (including injunctive, declaratory, monetary or other relief) against the Releasees involving any matter occurring in the past up to the date of this General Release, or involving or based upon any claims, demands, causes of action, obligations, damages or liabilities which are the subject of this General Release. This General Release shall not affect my rights under the Older Workers Benefit Protection Act to have a judicial determination of the validity of this General Release and does not purport to limit any right I may have to file a charge under the ADEA or other civil rights statute or to participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission or other investigative agency. This General Release does, however, waive and release any right to recover damages under the ADEA or other civil rights statute.

A-1

I have been given twenty-one (21) days to review this General Release and have been given the opportunity to consult with legal counsel, and I am signing this General Release knowingly, voluntarily and with full understanding of its terms and effects, and I voluntarily accept the consideration under Section 7 of the Employment Agreement for the purpose of making full and final settlement of all claims referred to above. If I have signed this General Release prior to the expiration of the twenty-one (21) day period, I have done so voluntarily. I also understand that I have seven (7) days after executing to revoke this General Release, and that this General Release will not become effective if I exercise my right to revoke my signature within seven (7) days of execution. I understand and acknowledge that my right to receive the consideration under Section 7 of the Employment Agreement, however, is conditioned upon my execution and non-revocation of this General Release.

Upon the receipt of reasonable notice from the Company (including the Company’s outside counsel), I agree to respond and provide information with regard to matters in which I had knowledge as a result of my employment with the Company, and provide reasonable assistance to the Company and its Related Entities and their respective representatives in defense of any claims that may be made against the Company or any of its Related Entities, and assist the Company and its Related Entities in the prosecution of any claims that may be made by the Company or any of its Related Entities, to the extent that such claims may relate to the period of my employment with the Company. I further agree to promptly inform the Company if I become aware of any lawsuits involving such claims that may be filed or threatened against the Company or any of its Related Entities. I also agree to promptly inform the Company (to the extent I am legally permitted to do so) if I am asked to assist in any investigation of the Company or any of its Related Entities or its or their actions, regardless of whether a lawsuit or other proceeding has then been filed with respect to such investigation, and shall not do so unless legally required.

I acknowledge that I have not relied on any representations or statements not set forth in this General Release.

This General Release will be governed by and construed in accordance with the laws of the State of New York, without regard to the choice of law principles thereof. If any provision in this General Release is held invalid or unenforceable for any reason, the remaining provisions shall be construed as if the invalid or unenforceable provision had not been included.

IN WITNESS WHEREOF, I have executed this General Release on this  _____  day of  _____  , 20  _____  ..

                                        
Thomas F.X. Beusse

A-2

EXHIBIT B

PARACHUTE TAX INDEMNITY PROVISIONS

This Exhibit B sets forth the terms and provisions applicable to Employee pursuant to the provisions of Section 7(g)(ii) of the Agreement. This Exhibit B shall be subject in all respects to the terms and conditions of the Agreement. The provisions of this Exhibit B shall only apply upon a Change in Control (as defined in Section 7(g) of the Agreement) of the Company. Capitalized terms used without definition in this Exhibit B shall have the meanings set forth in the Agreement.

(i) In the event that Employee shall become entitled to payments and/or benefits provided by the Agreement or any other amounts in the “nature of compensation” (whether pursuant to the terms of any plan, arrangement or agreement with the Company, any person whose actions result in a change of ownership or effective control covered by Section 280G(b)(2) of the Code or any person affiliated with the Company or such person) as a result of such change in ownership or effective control (collectively, the “Company Payments”), and such Company Payments will be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code (and any similar tax that may hereafter be imposed by any taxing authority), the Company shall pay to Employee at the time specified in clause (v) hereof an additional amount (the “Gross-Up Payment”) such that the net amount retained by Employee, after deduction of any Excise Tax on the Company Payments and any U.S. federal, state, and local income or payroll tax upon the Gross-Up Payment provided for by this clause (i), but before deduction for any U.S. federal, state, and local income or payroll tax on the Company Payments, shall be equal to the Company Payments.

(ii) Notwithstanding the foregoing provisions of this Exhibit B to the contrary, if it shall be determined that Employee is entitled to a Gross-Up Payment, but the Company Payments do not exceed 110% of the greatest amount (the “Reduced Amount”) that could be paid to Employee such that the receipt of the Company Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to Employee and the Company Payments, in the aggregate, shall be reduced to the Reduced Amount. If the Reduced Amount is to be effective, the Company Payments shall be reduced in the following order: (A) any cash severance based on a multiple of Base Salary or Annual Bonus, (B) any other cash amounts payable to Employee, (C) any benefits valued as “parachute payments,” (D) acceleration of vesting of any Option Awards for which the exercise price exceeds the then fair market value, and (E) acceleration of vesting of any equity not covered by clause (D) above. In the event that the Internal Revenue Service or court ultimately makes a determination that the “excess parachute payments” plus the “base amount” is an amount other than as determined initially, an appropriate adjustment shall be made with regard to the Gross-Up Payment or Reduced Amount, as applicable, to reflect the final determination and the resulting impact on whether this clause (ii) applies.

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(iii) For purposes of determining whether any of the Company Payments and Gross-Up Payment (collectively, the “Total Payments”) will be subject to the Excise Tax and the amount of such Excise Tax, (A) the Total Payments shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless and except to the extent that, in the opinion of the Company’s independent certified public accountants appointed prior to any change in ownership (as defined under Section 280G(b)(2) of the Code) or tax counsel selected by such accountants or the Company (the “Accountants”) such Total Payments (in whole or in part): (1) do not constitute “parachute payments,” (2) represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code in excess of the “base amount” or (3) are otherwise not subject to the Excise Tax, and (B) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of Section 280G of the Code. In the event that the Accountants are serving as accountants or auditors for the individual, entity or group effecting the change in control (within the meaning of Section 280G of the Code), Employee may appoint another nationally recognized accounting firm to make the determinations hereunder (which accounting firm shall then be referred to as the “Accountants” hereunder). All determinations hereunder shall be made by the Accountants which shall provide detailed supporting calculations both to the Company and Employee at such time as it is requested by the Company or Employee. The determination of the Accountants shall be final and binding upon the Company and Employee.

(iv) For purposes of determining the amount of the Gross-Up Payment, Employee’s marginal blended actual rates of federal, state and local income taxation in the calendar year in which the change in ownership or effective control that subjects Employee to the Excise Tax occurs shall be used. In the event that the Excise Tax is subsequently determined by the Accountants to be less than the amount taken into account hereunder at the time the Gross-Up Payment is made, Employee shall repay to the Company, at the time that the amount of such reduction in Excise Tax is finally determined, the portion of the prior Gross-Up Payment attributable to such reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax and U.S. federal, state and local income tax imposed on the portion of the Gross-Up Payment being repaid by Employee if such repayment results in a reduction in Excise Tax or a U.S. federal, state and local income tax deduction), plus interest on the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of the Code. Notwithstanding the foregoing, in the event that any portion of the Gross-Up Payment to be refunded to the Company has been paid to any U.S. federal, state and local tax authority, repayment thereof (and related amounts) shall not be required until actual refund or credit of such portion has been made to Employee, and interest payable to the Company shall not exceed the interest received or credited to Employee by such tax authority for the period it held such portion. Employee and the Company shall mutually agree upon the course of action to be pursued (and the method of allocating the expense thereof) if Employee’s claim for refund or credit is denied. In the event that the Excise Tax is later determined by the Accountants or the Internal Revenue Service to exceed the amount taken into account hereunder at the time the Gross-Up Payment is made (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of such excess (plus any interest or penalties payable with respect to such excess) promptly after the amount of such excess is finally determined.

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(v) The Gross-Up Payment or portion thereof provided for in clause (iv) above shall be paid not later than the sixtieth (60th) day following an event occurring which subjects Employee to the Excise Tax; provided, however, that if the amount of such Gross-Up Payment or portion thereof cannot be finally determined on or before such day, the Company shall pay to Employee on such day an estimate, as determined in good faith by the Accountants, of the minimum amount of such payments and shall pay the remainder of such payments (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code), subject to further payments pursuant to clause (iv) above, as soon as the amount thereof can reasonably be determined, but in no event later than the ninetieth (90th) day after the occurrence of the event subjecting Employee to the Excise Tax. Subject to clauses (iv) and (ix) of this Exhibit B, in the event that the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Company to Employee, payable on the fifth (5th) day after demand by the Company (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code).

(vi) In the event of any controversy with the Internal Revenue Service (or other taxing authority) with regard to the Excise Tax, Employee shall permit the Company to control issues related to the Excise Tax (at its expense), provided that such issues do not potentially materially adversely affect Employee, but Employee shall control any other issues. In the event that the issues are interrelated, Employee and the Company shall in good faith cooperate so as not to jeopardize resolution of either issue, but if the parties cannot agree, Employee shall make the final determination with regard to the issues. In the event of any conference with any taxing authority as to the Excise Tax or associated income taxes, Employee shall permit the representative of the Company to accompany Employee, and Employee and Employee’s representative shall cooperate with the Company and its representative.

(vii) The Company shall be responsible for all charges of the Accountants.

(viii) The Company and Employee shall promptly deliver to each other copies of any written communications, and summaries of any verbal communications, with any taxing authority regarding the Excise Tax covered by this Exhibit B.

(ix) Nothing in this Exhibit B is intended to violate the Sarbanes-Oxley Act of 2002 and to the extent that any advance or repayment obligation hereunder would do so, such obligation shall be modified so as to make the advance a nonrefundable payment to Employee and the repayment obligation null and void.

(x) Notwithstanding the foregoing, any payment or reimbursement made pursuant to this Exhibit B shall be paid to Employee promptly and in no event later than the end of the calendar year next following the calendar year in which the related tax is paid by Employee.

(xi) The provisions of this Exhibit B shall survive the termination of Employee’s employment with the Company for any reason and any amount payable under this Exhibit B shall be subject to the provisions of Section 23 of the Agreement.

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EX-10.3

Exhibit 10.3

EXECUTION VERSION

STAND-ALONE STOCK OPTION AGREEMENT

This Agreement is dated as of January 8, 2008 and is entered into by and between Westwood One, Inc. (“Westwood” or “Company”) and Thomas F.X. Beusse (“Participant”). The Company grants a Non-Qualified Stock Option (a “Stock Option” herein) to purchase shares of the Common Stock, $.01 par value per share, of the Company (“Common Stock”) as set forth below. A summary is set forth in the attached Exhibit “A” which is incorporated by this reference.

This Stock Option is granted to the Participant on a stand-alone basis outside the Company’s 2005 Equity Compensation Plan, as amended (the “Plan”), as a material inducement for the Participant to accept the position of Chief Executive Officer and enter the Employment Agreement (as defined in Paragraph 1 hereof). Notwithstanding the foregoing, it is intended that all of the terms and conditions of the Plan that would otherwise have been applicable to this Stock Option had this Stock Option been granted under the Plan (except as otherwise expressly provided herein) be applicable to this Stock Option, and accordingly, references to the Plan are made herein for such purpose.

The parties agree to the following terms and conditions:

1. Definitions. Unless otherwise defined in this Agreement, terms used in this Agreement will have the meanings as set forth in the Plan; provided, however, that the term “Change in Control” for all purposes of this Agreement shall have the meaning set forth in the employment agreement by and between the Company and the Participant dated January 8, 2008 (the “Employment Agreement”).

2. Grant of Stock Option. The Company grants to Participant a Stock Option of the type set forth in Exhibit “A” to purchase all or part of 500,000 shares of Common Stock at the price of $1.63 per share subject to the terms and conditions of the Plan. The number of shares subject to such Stock Option and the price per share are subject to adjustment in certain events as provided in the Plan.

3. Term of Stock Option. Unless otherwise terminated pursuant to this Agreement or the Plan, this Stock Option will expire as provided in Paragraph 6 hereof. However, expiration will not occur later than ten years from the date of grant.

4. Vesting of Stock Option. The Stock Option may be exercised, in whole or in part, at any time or from time to time during the balance of the term of the Stock Option pursuant to the vesting schedule set forth in Exhibit “A”, subject to Paragraphs 6, 7 and 12 hereof. The minimum number of shares of Common Stock for which this Stock Option may be exercisable at any one time is one hundred (100), unless the number of shares exercisable thereunder is less than one hundred (100). The Stock Option may only be exercised by the Participant (or by his or her guardian or legal representative), except as provided in Subparagraph 6.A. hereof in the case of the Participant’s death.

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5.

Manner of Exercise. This Stock Option may be exercised in whole or in part, by delivering to the Company a Notice of Exercise identical to Exhibit “B” attached to this Agreement stating the number of shares with respect to which the Stock Option is being exercised. The Company will have no obligation upon exercise of any Stock Option, until payment has been received by the Company for all sums due with respect to such exercise, including the Participant’s federal and state income taxes. Shares of Common Stock purchased upon the exercise of this Stock Option must be paid for in full by one or a combination of the following methods: (i) by cash, certified or cashier’s check, bank draft or money order payable to the order of the Company, (ii) in shares of Common Stock which have been held by Participant for a period of at least six (6) calendar months preceding the date of surrender and which have a Fair Market Value equal to the Exercise Price, or in a combination of shares and a cash, certified or cashier’s check, bank draft or money order payable to the order of the Company and such shares, or (iii) solely to the extent permitted by applicable law, if the Common Stock is traded on the New York Stock Exchange, any other national securities exchange, the Nasdaq Stock Market or quoted on a national quotation system sponsored by the National Association of Securities Dealers, and the Committee authorizes, through a procedure whereby the Participant delivers irrevocable instructions to a broker reasonably acceptable to the Committee to deliver promptly to the Company an amount equal to the Exercise Price.

6.

Termination.

A. Upon the Participant’s Termination all then vested Stock Options shall remain exercisable as follows, but in no event later than ten years after the grant date: (i) three years in the event of the Participant’s Retirement; (ii) one year in the event of the Participant’s death (in which case the Participant’s estate or legal representative may exercise such Option) or (iii) three months for any other Termination (other than for Cause). Notwithstanding the foregoing, in the event of the Participant’s Termination by the Company without Cause or by the Participant for “Good Reason” (as defined in the Employment Agreement) prior to the first anniversary of the date hereof, this Stock Option shall become vested and exercisable as to one-third (1/3) of the then unvested portion of this Stock Option as of the date of such Termination, and shall remain exercisable following such Termination for a period that is the longer of (x) the date of Termination through the first anniversary of the date hereof and (y) 90 days from the date of Termination.

B. Upon the Participant’s Termination for Cause, all outstanding Stock Options (whether vested or unvested) shall immediately terminate upon such Termination.

C. Stock Options that are not vested as of the date of the Participant’s Termination for any reason shall terminate and expire as of the date of such Termination.

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7. Change in Control. This Stock Option shall be subject to the provisions of Section 12 of the Plan (except with respect to the definition of Change in Control as provided in Paragraph 1 hereof for purposes of the accelerated vesting in this Paragraph 7) and, to the extent then unvested, shall become fully vested and immediately exercisable upon a Termination of the Participant’s employment by the Company without Cause or by the Participant for Good Reason during the 24-month period following a Change in Control, and shall remain exercisable following such Termination for the period specified under Subparagraph 6.A. hereof.

8. Assignment or Transfer. This Stock Option is not: (i) assignable or subject to any encumbrance, pledge or charge of any nature, whether by operation of law or otherwise; (ii) subject to execution, attachment or any legal or quasi-legal process similar to execution or attachment; or (iii) transferable other than by (x) will or by the laws of descent and distribution, or (y) pursuant to a qualified domestic relations order as defined by the Internal Revenue Code of 1986, as amended or Title I of ERISA, or rules thereunder.

9. No Rights as Stockholder. The Participant, and any beneficiary or other person claiming under or through him or her, will not have any right, title or interest in or to any shares of Common Stock allocated or reserved for the Plan or subject to this Stock Option except as to such shares of Common Stock, if any, as have been previously sold, issued or transferred to him or her.

10. Modification and Termination. The rights of the Participant are subject to modification and termination in certain events as provided in the Plan. The Participant acknowledges receipt of a copy of the Plan by signing and returning a copy of this Agreement to the Company. Except as otherwise provided in the Plan, no amendment or discontinuance of the Plan will adversely affect this Stock Option, except with the consent of the Participant. No modification of this Agreement may be made other than in a writing signed by the Company and the Participant.

11. Investment Representation. An investment representation is required in the event Company does not have in effect, at the time this Stock Option is exercised, a prospectus and a registration statement relating to the shares issuable upon exercise of this Stock Option pursuant to the requirements of the Securities Act of 1934, as amended and the Securities laws of the Participant’s state of residence. In such event, Participant hereby represents and agrees that Participant will acquire the shares upon exercise of this Stock Option for investment and not with a view to sale or resale and will comply with all applicable laws with regard to resale, including, but not limited to, Rule 144(d) promulgated by the United States Securities and Exchange Commission. If the Participant is a California resident, Participant also agrees to comply with the requirements of the California Corporate Securities Law of 1968.

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12. Six (6) Month Holding Period. A Participant is prohibited from selling or otherwise disposing of shares of Common Stock received upon the exercise of this Stock Option within six (6) months from the date the Stock Option is granted.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

WESTWOOD ONE, INC.		PARTICIPANT
By:		By:
	(Signature)		(Signature)
Name:		Name:
	(Type or Print)		(Type or Print)
Title:		Date:
Date:

THE UNDERSIGNED HEREBY ACKNOWLEDGES THAT HE OR SHE HAS RECEIVED A COPY OF THE PLAN.

By:
	Thomas F.X. Beusse
Date:

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EXHIBIT “A”

1.	Participant:	Thomas F.X. Beusse
2.	No. of shares of Common Stock subject to the Stock Option Granted:	500,000
3:	Exercise Price:	$1.63
4.	Type of Option Granted (Incentive/Non-Qualified):	Non-Qualified
5.	Date of Grant:	January 8, 2008
6.	Vesting Schedule:	Except as provided in Paragraphs 6 and 7 of the Agreement, this Stock Option shall vest in three equal annual installments on each of January 8, 2009, 2010 and 2011, subject to the Participant’s continued service with the Company on each applicable vesting date.
7.	Expiration Date:	10 years after the grant date, subject to earlier termination as provided in the Agreement.

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EXHIBIT “B”

NOTICE OF EXERCISE
(To be signed only upon exercise of the Option)

TO: Westwood One, Inc. (“Westwood” or “Company”)

The undersigned, the holder of a Stock Option to purchase                shares of the Company’s Common Stock pursuant to the enclosed Stock Option Agreement dated               , hereby irrevocably elects to exercise the purchase rights represented by the Stock Option and to purchase thereunder                     *shares of Common Stock and herewith encloses a certified or cashier’s check in the amount of $                and/or                shares of the Company’s Common Stock in full payment of the exercise price and all federal and state income taxes required to be paid in connection with the purchase of such shares.

Dated:                     

By:
(Signature must conform in all respects to name of holder as specified on the face of the Option).
Name:
	(Print or Type)
	(Address)
	(Social Security Number)

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EX-10.4

Exhibit 10.4

EXECUTION VERSION

AMENDMENT NO. 3 TO EMPLOYMENT AGREEMENT
BETWEEN WESTWOOD ONE, INC. AND NORMAN J. PATTIZ

The following, upon execution by the parties hereto, shall constitute Amendment No. 3, dated as of January 8, 2008 (the “Third Amendment”), by and between Westwood One, Inc. (the “Company”) and Norman J. Pattiz (“Employee”) to the Employment Agreement, entered into by and between the Company and Employee, made as of April 29, 1998, as amended by the Amendment to Employment Agreement between the Company and Employee, dated as of October 27, 2003 and by the Amendment No. 2 to Employment Agreement between the Company and Employee, dated as of November 28, 2005 (as amended, the “Agreement”). Capitalized terms used but not defined herein have the meaning set forth in the Agreement. The parties hereto agree that the terms of the Agreement are hereby modified as set forth herein. In the event of a conflict between the terms of the Agreement and the terms of this Third Amendment, the terms of this Third Amendment shall prevail. For the avoidance of doubt, this Agreement shall not supersede the letter to Employee from David A. Hillman, dated May 25, 2005, regarding the options granted to Employee on December 1, 2003 and December 1, 2004.

1. Section 2 of the Agreement is hereby deleted in its entirety and replaced with a new Section 2 to read as follows:

“The term of employment shall be extended for an additional period beginning December 1, 2008 and continuing through June 15, 2009 (the “Extended Term”). In the event that the Agreement expires effective June 15, 2009 and the Company determines not to renew the Agreement, the Agreement will be deemed terminated; provided, however, that the Company will continue to engage Employee as a part-time employee and/or consultant (at the Company’s option) through November 30, 2015, or such earlier time as Employee voluntarily terminates his service with the Company (the “Continued Engagement Period”). The provisions of Section 5 of this Agreement shall cease to apply to Employee on the earlier to occur of June 15, 2009 and the effective date of a termination of Employee’s employment prior to the expiration of the Extended Term. In addition, during the Continued Engagement Period: (i) the remainder of this Agreement shall no longer be of any force and effect; (ii) Employee will neither employ, hire or engage, nor offer to employ, hire or engage nor solicit employment or service, directly or indirectly, of any employee or consultant of the Company or its related entities or any person or entity under an exclusive contract in radio with the Company or its related entities to provide voice talent to the Company or its related entities (a “Voice Talent”); provided, however, that this clause (ii) shall only apply to employees, consultants and Voice Talent who were providing services of any kind to the Company or its related entities on the earlier to occur of June 15, 2009 and the effective date of a termination of Employee’s employment prior to the expiration of the Extended Term; and (iii) Employee’s outstanding stock options will continue to vest until the end of the Continued Engagement Period.”

2. Section 3.2(e) of the Agreement shall be deleted in its entirety and replaced with a new Section 3.2(e) to read as follows:

“(e) During the term hereof, Company shall pay or reimburse all expenses incurred in connection with the performance of Employee’s duties hereunder or in promoting the business of the Company, including without limitation business-related entertainment expenses and travel expenses.”

3. Section 4 of the Agreement shall be deleted in its entirety and replaced with a new Section 4 to read as follows; provided, however, that nothing herein shall be construed to effect any of the terms and conditions of any outstanding equity award granted to Employee prior to the date of this Third Amendment:

“4 2008 Stock Option Award.

4.1 In exchange for Employee’s agreement to extend the term of this Agreement and to continue to provide services as reasonably requested by the Board of Directors in light of the Company’s hiring of a new Chief Executive Officer on January 8, 2008, the Company shall grant to Employee a nonqualified stock option to purchase 250,000 shares of the Company’s common stock (the “2008 Grant”), subject to the terms and conditions set forth herein.

4.2 The 2008 Grant will be granted under, and subject to the terms and conditions of the Company’s 2005 Equity Compensation Plan (the “2005 Plan”) and the Company’s standard stock option agreement for employees, which will include an exercise price equal to the fair market value of the common stock on the grant date (as determined under the 2005 Plan) and the standard post-termination exercise periods provided in the 2005 Plan.

4.3 Subject to the provisions of this Section 4.3 and Section 4.4, the 2008 Grant will vest annually over a three-year period on each anniversary of the effective date of the Third Amendment, subject to Employee’s continuous employment with the Company through each such vesting date (including service during the Continued Engagement Period). Notwithstanding the foregoing, the 2008 Grant will become fully vested upon a “Change in Control.” For this purpose, the term “Change in Control” shall have the meaning set forth in the 2005 Plan, provided, however, that clause (i) of said definition shall be modified to read as follows: “(i) the acquisition by any Person (as hereinafter defined) of 50% or more of the outstanding Shares (the “Outstanding Company Stock”) (other than an acquisition by the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or any Person that controls, is controlled by or is under common control within the Company or other than a Non-Qualifying Business Combination (as defined below));”.

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4.4 If the Company terminates Employee without Cause or if the Employee terminates due to the Company’s adverse change to Employee’s title as Chairman, in each case, prior to the first anniversary of the effective date of the Third Amendment to this Agreement, one-third (1/3) of the 2008 Grant will immediately vest as of the date of termination and will be exercisable until ninety (90) days following the expiration of the Continued Engagement Period. The remaining two-thirds (2/3) of the 2008 Grant will continue to vest over the Continued Engagement Period.”

4. In connection with the negotiation and preparation of this Third Amendment, the Company will reimburse Employee for the reasonable attorneys’ fees (for time actually billed) incurred by Employee.

[End of text – signature page follows]

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IN WITNESS WHEREOF, this Third Amendment is EXECUTED as of the date first above written, to be EFFECTIVE FOR ALL PURPOSES as of said date.

WESTWOOD ONE, INC.

By: /s/ David Hillman                                               

Printed Name: David Hillman                                  

Title: CAO & GC                                                    

EMPLOYEE

/s/ Norman J. Pattiz                                                  
Norman J. Pattiz

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EX-99.1

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

WESTWOOD ONE
APPOINTS
THOMAS F.X. BEUSSE
PRESIDENT AND CHIEF EXECUTIVE OFFICER

New York, NY — January 8, 2008 — Westwood One (NYSE: WON) announced today that its Board of Directors has appointed Thomas Beusse as President and Chief Executive Officer of Westwood One and a member of the Westwood One Board of Directors.

“Tom is an experienced media executive with a strong track record of revenue growth and effective leadership at companies ranging from Fortune 500 to start-up organizations,” said Norman J. Pattiz, Chairman of the Board of Westwood One. “A creative and strategic thinker, Tom is the ideal executive to lead Westwood One as the Company continues to evolve as a top provider of content to the broadcast industry and beyond.”

Mr. Beusse was most recently the President of Time4 Media, a former division of Time Inc., overseeing its multimedia stable of enthusiast brands including GOLF MAGAZINE, Field & Stream, Popular Science, Yachting, SKI and the TransWorld action sports titles, as well as This Old House Ventures and Warren Miller Entertainment. Previously, as president of magazine publishing at Rodale, Beusse oversaw the print, online, event, television and licensing business of such notable brands as Men’s Health and Runner’s World. Earlier in his career, Beusse held several sales positions including NY Divisional Manager during an eight year stint at Sports Illustrated. He received a BA from Ithaca College in 1986.

“I have been very fortunate in my career to have worked on some of the most notable brands in media. Westwood One has long been among the most revered brands in broadcasting, and I look forward to using the internet and other evolving digital technologies to improve our current leadership position and ensure the brand’s relevance well into the future”, said Beusse.

Mr. Beusse succeeds Peter Kosann. “We thank Peter for his contributions to Westwood One and wish him luck in his future endeavors,” said Mr. Pattiz.

About Westwood One
Westwood One (NYSE: WON) provides over 150 news, sports, music, talk, entertainment programs, features and live events. Through its subsidiaries, Metro Networks/Shadow Broadcast Services, Westwood One provides local content to the radio and TV industries including news, sports, weather, traffic, video news services and other information. SmartRoute Systems manages traffic information centers for state and local departments of transportation, and markets traffic and travel content to wireless, Internet, in-vehicle navigation systems and voice portal customers. Westwood One serves more than 5,000 radio stations. Westwood One is managed by CBS Radio.

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Press Contact
Peter Sessa
Westwood One
212.641.2053
peter_sessa@westwoodone.com

EX-99.2

Exhibit 99.2

P R E S S R E L E A S E

FOR IMMEDIATE RELEASE

WESTWOOD ONE CEO RECEIVES
INDUCEMENT GRANT OF A NON-QUALIFIED STOCK OPTION

New York, NY – January 10, 2008 – Westwood One (NYSE: WON) announced today that the Compensation Committee of the Board of Directors of Westwood One, Inc. (the “Company” or “Westwood”) approved and made an inducement grant of a non-qualified stock option exercisable for 500,000 shares of Company common stock to Thomas F.X. Beusse, who yesterday was appointed President and Chief Executive Officer of Westwood. Mr. Beusse will also serve as a director of the Company.

The grant is in addition to a separate grant of a non-qualified stock option to purchase 500,000 shares of Company common stock under the Company’s 2005 Equity Compensation Plan. All of the options have an exercise price of $1.63 per share, the closing price of the Company’s common stock on the date of the grant (January 8, 2008) when Mr. Beusse was appointed President and CEO.

Mr. Beusse was most recently the President of Time4 Media, a former division of Time Inc., overseeing its multimedia stable of enthusiast brands including GOLF MAGAZINE, Field & Stream, Popular Science, Yachting, SKI and the TransWorld action sports titles, as well as This Old House Ventures and Warren Miller Entertainment. Previously, as president of magazine publishing at Rodale, Beusse oversaw the print, online, event, television and licensing business of such notable brands as Men’s Health and Runner’s World. Earlier in his career, Beusse held several sales positions including NY Divisional Manager during an eight year stint at Sports Illustrated. He received a B.A. from Ithaca College in 1986.

The terms and conditions of Mr. Beusse’s employment agreement with the Company, including the equity awards described above, are described in the Company’s Current Report on Form 8-K filed today with the Securities and Exchange Commission.

About Westwood One
Westwood One (NYSE: WON) provides over 150 news, sports, music, talk, entertainment programs, features and live events. Through its subsidiaries, Metro Networks/Shadow Broadcast Services, Westwood One provides local content to the radio and TV industries including news, sports, weather, traffic, video news services and other information. SmartRoute Systems manages traffic information centers for state and local departments of transportation, and markets traffic and travel content to wireless, Internet, in-vehicle navigation systems and voice portal customers. Westwood One serves more than 5,000 radio stations. Westwood One is managed by CBS Radio.

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Press Contact
Peter Sessa
Westwood One
212.641.2053
peter_sessa@westwoodone.com