CBS Radio, the country's third largest radio conglomerate, has agreed to make a $2 million charitable contribution to settle allegations brought in a payola investigation by New York State Attorney General Eliot Spitzer.

Spitzer announced the settlement and said CBS Radio, formerly Infinity Broadcasting, agreed to immediately stop taking "payments and other inducements" from record labels "in exchange for airplay."

According to Spitzer, certain CBS Radio stations "openly solicited illegal financial benefits, expensive vacation packages" and other valuable items from record labels in "exchange for playing the labels' songs."

In a statement, CBS Radio said it "does not admit to any liability or violation of law."  The company said it became aware of "conduct that was inconsistent" with company policy by two employees in one of its markets.  CBS said one employee was fired and a second suspended without pay.

Spitzer said some CBS stations "accepted payola for songs that station managers acknowledged would not have otherwise been placed on the playlist." Spitzer cited "Shut Up" by Nick Lachey and "You Are My #1" by Smashmouth as two songs added by WPXY in Rochester, N.Y., in exchange for airplane trips to be used for contest prizes.

Spitzer's payola investigation has resulted in settlements with four major record labels. At least eight other radio conglomerates, including ABC, remain under investigation, according to people in Spitzer's office.

Chief Investigative Correspondent Brian Ross first reported on the allegations and investigation by Attorney General Spitzer's office on ABC News' Primetime.

Read the press release from Attorney General Spitzer's Office on CBS Radio's settlement.