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	September 30,
	Period Ended		Units	Price		Term (Years)	2018

RSUs outstanding as of:	December 31, 2017		4,285,290
RSUs awarded			1,284,050
RSUs released			(1,492,544)
RSUs forfeited			(339,317)
RSUs outstanding as of:	September 30, 2018		3,737,479	$	-	1.4	$	28,782,654
RSUs vested and expected
to vest as of:	September 30, 2018		3,737,479	$	-	1.4	$	28,782,654
RSUs exercisable (vested and
deferred) as of:	September 30, 2018		48,880	$	-	-	$	376,376
Weighted average remaining
recognition period in years			2.1
Unamortized compensation
expense		$	25,909,972

RSUs With Service and Market Conditions

The Company issued RSUs with service and market conditions that are included in the table above. These shares vest if: (i) the Company’s stock achieves certain shareholder performance targets over a defined measurement period; and (ii) 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 are amortized over the longest of the explicit, implicit or derived service periods, which range from approximately one to three years.

		Nine Months		Year
		Ended		Ended
		September 30,		December 31,
		2018		2017
		(amounts in thousands, except per share data)
		(amounts in thousands, except per share data)
Reconciliation of RSUs with Service And Market Conditions
	Beginning of period balance		650		630
	Number of RSUs granted		-		70
	Number of RSUs forfeited		(110)		-
	Number of RSUs vested		(314)		(50)
	End of period balance		226		650
	Weighted average fair value of RSUs granted
	with market conditions	$	-	$	9.81

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.

	Nine Months			Year
	Ended			Ended
	September 30,			December 31,
	2018		2017

Expected Volatility Term Structure ⁽¹⁾		-		54%
Risk-Free Interest Rate ⁽²⁾		-		1.8%
Annual Dividend Payment Per Share (Constant) ⁽³⁾	$	-	$	3.3%

Option Activity

The following table provides summary information related to the exercise of stock options:

	Nine Months Ended September 30,
Option Exercise Data	2018		2017
	(amounts in thousands)

Intrinsic value of options exercised	$	418	$	58
Tax benefit from options exercised ⁽¹⁾	$	111	$	23
Cash received from exercise price of options exercised	$	68	$	22

						Weighted	Intrinsic
				Weighted		Average	Value
				Average		Remaining	as of
		Number of		Exercise		Contractual	September 30,
	Period Ended	Options		Price		Term (Years)	2018

Options outstanding as of:	December 31, 2017		883,347	$	8.38
Options granted			-		-
Options exercised			(50,300)		1.34
Options forfeited			-		-
Options expired			(15,000)		9.30
Options outstanding as of:	September 30, 2018		818,047	$	8.80	1.5	$	1,592,166
Options vested and expected to
vest as of:	September 30, 2018		818,047	$	8.80	1.5	$	1,592,166
Options vested and exercisable as of:	September 30, 2018		818,047	$	8.80	1.5	$	1,592,166
Weighted average remaining
recognition period in years			-
Unamortized compensation expense		$	-

The following table summarizes significant ranges of outstanding and exercisable options as of the current period:

				Options Outstanding				Options Exercisable
				Number of	Weighted			Number of
				Options	Average	Weighted		Options	Weighted
Range of				Outstanding	Remaining	Average		Exercisable	Average
Exercise Prices				September 30,	Contractual	Exercise		September 30,	Exercise
From		To		2018	Life	Price		2018	Price
$	1.34	$	1.34	246,637	0.4	$	1.34	246,637	$	1.34
$	2.02	$	13.98	571,410	2.1	$	12.02	571,410	$	12.02
$	1.34	$	13.98	818,047	1.5	$	8.80	818,047	$	8.80

Recognized Non-Cash Stock-Based Compensation Expense

The following non-cash stock-based compensation expense, which is related primarily to RSUs, is included in each of the respective line items in the Company’s statement of operations:

	Nine Months Ended
	September 30,
	2018		2017
		(amounts in thousands)

Station operating expenses	$	5,295	$	937
Corporate general and administrative expenses		6,126		3,692
Stock-based compensation expense included in operating expenses		11,421		4,629
Income tax benefit ⁽¹⁾		2,385		1,528
After-tax stock-based compensation expense	$	9,036	$	3,101

	Three Months Ended
	September 30,
	2018		2017
	(amounts in thousands)

Station operating expenses	$	1,653	$	360
Corporate general and administrative expenses		2,116		1,197
Stock-based compensation expense included in operating expenses		3,769		1,557
Income tax benefit ⁽¹⁾		787		525
After-tax stock-based compensation expense	$	2,982	$	1,032