Under the Entercom Equity Compensation Plan (the “Plan”), the Company is authorized to issue share-based compensation awards to key employees, directors and consultants.

Restricted Stock Units (“RSUs”) Activity

			Number			Weighted	Aggregate
			Of	Weighted		Average	Intrinsic
			Restricted	Average		Remaining	Value As Of
			Stock	Purchase		Contractual	June 30,
	Period Ended		Units	Price		Term (Years)	2015

RSUs outstanding as of:	December 31, 2014		1,258,685
RSUs awarded			672,277
RSUs released			(392,255)
RSUs forfeited			(45,623)
RSUs outstanding as of:	June 30, 2015		1,493,084	$	-	1.5	$	17,051,019
RSUs vested and expected
to vest as of:	June 30, 2015		1,391,251	$	-	1.4	$	14,958,724
RSUs exercisable (vested and
deferred) as of:	June 30, 2015		81,380	$	-	-	$	929,360
Weighted average remaining
recognition period in years			2.2
Unamortized compensation
expense, net of estimated
forfeitures		$	9,412,152

RSUs With Service And Market Conditions

During the first quarters of 2015 and 2014, the Company issued RSUs with service and market conditions that are included in the above table. These shares vest if: (1) the Company’s stock achieves certain shareholder performance targets over a defined measurement period; and (2) the employee fulfills a minimum service period. The compensation expense is recognized even if the market conditions are not satisfied and are only reversed in the event the service period is not met, as all of the conditions need to be satisfied. These RSUs, which are included in the RSU activity table, are amortized over the longest of the explicit, implicit or derived service periods, which range from one to two years.

			Six Months		Year
			Ended		Ended
			June 30,		December 31,
			2015		2014
			(amounts in thousands, except per share data)

Reconciliation Of RSUs With Market Conditions
	Beginning of period balance			290		-
	Number of RSUs granted			165		290
	Number of RSUs forfeited			-		-
	Number of RSUs vested			(65)		-
	End of period balance	-65		390		290
	Average fair value of RSUs issued with market
	conditions		$	8.39	$	6.90

The fair value of RSUs with service conditions is estimated using the Company’s closing stock price on the date of the grant. To determine the fair value of RSUs with service and market conditions, the Company used the Monte Carlo simulation lattice model. The Company’s determination of the fair value was based on the number of shares granted, the Company’s stock price on the date of grant and certain assumptions regarding a number of highly complex and subjective variables. If other reasonable assumptions were used, the results could differ.

Expected Volatility Term Structure - The Company estimated the volatility term structure using: (1) the historical volatility of its stock; and (2) the implied volatility provided by its traded options from a trailing month’s average of the closing bid-ask price quotes.

Risk-Free Interest Rate - The Company estimated the risk-free interest rate based upon the implied yield available on U.S. Treasury issues using the Treasury bond rate as of the date of grant.

Dividend Yield - The Company calculated the dividend yield at the time of grant based upon the Company’s most recent history of not paying a dividend on its common stock.

RSUs With Performance Conditions

In addition to the RSUs included in the table above summarizing the changes in RSUs under the Plan, the Company issued eleven thousand RSUs during 2014 with performance conditions at an average fair market value of $9.60 per share. As of June 30, 2015, three thousand RSUs expired unvested.

Vesting of performance-based awards, if any, is dependent upon the achievement of certain performance targets. If the performance standards are not achieved, all unvested shares will expire and any accrued expense will be reversed. The Company determines the requisite service period on a case-by-case basis to determine the expense recognition period for non-vested performance based RSUs. The fair value is determined based upon the closing price of the Company’s common stock on the date of grant.

The Company applies a quarterly probability assessment in computing its non-cash compensation expense and any change in the estimate is reflected as a cumulative adjustment to expense in the quarter of the change.

Amount excludes impact from suspended income tax benefits and/or valuation allowances.

						Weighted	Intrinsic
				Weighted		Average	Value
				Average		Remaining	As Of
		Number Of		Exercise		Contractual	June 30,
	Period Ended	Options		Price		Term (Years)	2015

Options outstanding as of:	December 31, 2014		486,675	$	2.11
Options granted			-		-
Options exercised			(8,750)		3.60
Options forfeited			(3,750)		8.72
Options expired			(1,000)		33.90
Options outstanding as of:	June 30, 2015		473,175	$	1.97	3.6	$	4,476,674

Options vested and expected to vest as of:	June 30, 2015		473,175	$	1.97	3.6	$	4,476,674
Options vested and exercisable as of:	June 30, 2015		473,175	$	1.97	3.6	$	4,476,674
Weighted average remaining
recognition period in years			-
Unamortized compensation expense,
net of estimated forfeitures		$	13,632

				Options Outstanding				Options Exercisable
				Number Of	Weighted			Number Of
				Options	Average	Weighted		Options	Weighted
Range Of				Outstanding	Remaining	Average		Exercisable	Average
Exercise Prices				June 30,	Contractual	Exercise		June 30,	Exercise
From		To		2015	Life	Price		2015	Price
$	1.34	$	1.34	436,925	3.6	$	1.34	436,925	$	1.34
$	2.02	$	11.78	36,250	3.0	$	9.54	36,250	$	9.54
$	1.34	$	11.78	473,175	3.6	$	1.97	473,175	$	1.97

Recognized Non-Cash Stock-Based Compensation Expense

The following non-cash stock-based compensation expense, which is comprised primarily of RSUs, is included in each of the respective line items in our statement of operations:

	Six Months Ended
	June 30,
	2015		2014
		(amounts in thousands)

Station operating expenses	$	545	$	395
Corporate general and administrative expenses		1,997		2,099
Stock-based compensation expense included in operating expenses		2,542		2,494
Income tax benefit ⁽¹⁾		936		743
Net stock-based compensation expense	$	1,606	$	1,751

	Three Months Ended

	June 30,
	2015		2014
	(amounts in thousands)

Station operating expenses	$	368	$	259
Corporate general and administrative expenses		1,062		1,026
Stock-based compensation expense included in operating expenses		1,430		1,285
Income tax benefit ⁽¹⁾		523		390
Net stock-based compensation expense	$	907	$	895