Document:

exv10w45

Exhibit 10.45

	 	 	 
	 

	 	Grant No. Kerr Initial Grant
	 
	 	 
	 

	 	o     Kerr’s Copy
	 
	 	 
	 

	 	o     Company’s Copy

Arbitron Inc.

2008 Equity Compensation Plan

Deferred Stock Unit
Agreement — Initial Grant

To William T. Kerr:

     Arbitron Inc. (the “Company”) has granted you (the “Grant”) deferred stock units as set forth
on Exhibit A to this Agreement (the “DSUs”) under its 2008 Equity Compensation Plan (the “Plan”),
subject to the Vesting Schedule specified on Exhibit A.

     The Grant is subject in all respects to the applicable provisions of the Plan. This Agreement
does not cover all of the rules that apply to the Grant under the Plan, and the Plan defines any
capitalized terms in this Agreement that this Agreement does not define.

     In addition to the Plan’s terms and restrictions, the following terms and restrictions apply:

	 	 	 
	Vesting Schedule

	 	The Grant becomes nonforfeitable (“Vested”) as to some or
all of the DSUs only as provided on Exhibit A.
	 
	 	 
	Distribution

	 	You will receive a distribution of shares (the “Shares”)
of Company common stock (“Common Stock”) equivalent to
your DSUs as follows:
	 
	 	 
	 

	 	One-quarter of the initial DSUs within 45 days following each
anniversary of the Date of Grant, provided that (i) no DSUs will be
paid before they vest, (ii) no DSUs will be paid until 30 days after
you have a separation from service, except as the Plan may otherwise
require, and (iii) all DSUs will be distributed within 30 days after
and if your employment ends as a result of your death or Disability
(as the latter is defined in your employment agreement with the
Company dated February 11, 2010 (the “Employment Agreement”),
provided that the Disability will only accelerate the payment
schedule if it also satisfies the definition of Disability under
Section 409A of the Code.

	 
	 	 
	Limited Status

	 	You understand and agree that the Company will not consider you a shareholder for any purpose with respect to
the Shares, unless and until the Shares have been issued to you on the Distribution Date(s). You will, however,
receive dividend equivalents (“Dividend Equivalent Rights”) with respect to the Vested DSUs, measured using the
Shares they represent, with the amounts convertible into full or fractional additional Vested DSUs based on
dividing the dividends by the Fair Market Value (as defined in the Plan) as of the date of dividend distribution
and holding the resulting additional Vested DSUs for distribution as provided for the DSUs with respect to which
they were issued.

 

 

	 	 	 
	Voting

	 	DSUs cannot be voted. You may not vote the Shares unless and until the Shares are distributed to you.
	 
	 	 
	Transfer
Restrictions
and
Forfeiture

	 	You may not sell, assign, pledge, encumber, or otherwise transfer any
interest (“Transfer”) in the Shares until the Shares are distributed to you.
Any attempted Transfer that precedes the Distribution Date for such
Shares is invalid.
	 
	 	 
	 

	 	Unless the Administrator determines otherwise at any time or Exhibit A
provides otherwise, if your service with the Company terminates for any
reason before all of your DSUs are Vested, then you will forfeit such
unvested DSUs (and the Shares to which they relate) to the extent that such
DSUs do not otherwise vest as a result of the termination. The forfeited
DSUs will then immediately revert to the Company. You will receive no
payment for DSUs that you forfeit.
	 
	 	 
	Additional

Conditions

	 	The Company may postpone issuing and delivering any Shares for so
long as the Company determines to be advisable to satisfy the following:
	to Receipt
	 	 
	 
	 	 
	

	 	its completing or amending any securities registration or qualification of the Shares or its or your
satisfying any exemption from registration under any Federal or state law, rule, or regulation;

	 
	 	 
	

	 	its receiving proof it considers satisfactory that a person or entity seeking to receive the Shares after
your death is entitled to do so;

	 
	 	 
	 

	 	your complying with any requests for representations under the Grant and the Plan; and

	 
	 	 
	 

	 	its or your complying with any federal, state, or local tax withholding obligations.

	 
	 	 
	Taxes and 

Withholding

	 	The DSUs provide tax deferral, meaning that they are not taxable to you
for income tax purposes until you actually receive Shares on or around each Distribution Date. You will then owe
taxes at ordinary income tax rates as of each Distribution Date at the Shares’ value.
	 
	 	 
	 

	 	The Company is required to withhold (in cash from salary or other amounts
owed you) the applicable percentage of the value of the Shares on the
Distribution Date, regardless of whether you sell them. If the Company does
not choose to do so, you agree to arrange for payment of the withholding
taxes and/or confirm that the Company is arranging for appropriate
withholding. You will be subject to Social Security and Medicare taxation
as you vest in the DSUs, and the preceding provisions will apply to those
taxes as though the vesting date were a Distribution Date.
	 
	 	 
	Additional 

Representations

	 	If you receive Shares at a time when the Company does not have a
current registration statement (generally on Form S-8) under the Act that

- 2 -

 

	 	 	 
	from You

	 	covers issuances of Shares to you, you must comply with the following before the Company will release the
Shares to you. You must:
	 
	 	 
	 

	 	represent to the Company, in a manner satisfactory to the Company’s counsel, that you are acquiring the
Shares for your own account and not with a view to reselling or distributing the Shares; and

	 
	 	 
	 

	 	agree that you will not sell, transfer, or otherwise dispose of the Shares unless:

	 
	 	 
	 

	 	a registration statement under the Act is effective at the time of disposition with respect to
the Shares you propose to sell, transfer, or otherwise dispose of; or

	 
	 	 
	 

	 	the Company has received an opinion of counsel or other information and representations it
considers satisfactory to the effect that, because of Rule 144 under the Act or otherwise, no registration
under the Act is required.

	 
	 	 
	Additional 

Restriction

	 	You will not receive the Shares if issuing the Shares would violate any
applicable federal or state securities laws or other laws or regulations.
	 
	 	 
	No Effect on 

Employment 

or Other 

Relationship

	 	Nothing in this Agreement restricts the Company’s rights or those of any
of its affiliates to terminate your employment or other relationship at any
time, with or without cause. The termination of your relationship, whether
by the Company or any of its affiliates or otherwise, and regardless of the reason for such termination, has
the consequences provided for under the Plan and any applicable employment or severance agreement or plan.
	 
	 	 
	No Effect on 

Running Business

	 	You understand and agree that the existence of the DSU will not affect in
any way the right or power of the Company or its stockholders to make or authorize any adjustments,
recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or
any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or other stock,
with preference ahead of or convertible into, or otherwise affecting the Company’s common stock or the rights
thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether or not of a similar character to those
described above.
	 
	 	 
	Section 409A

	 	This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code and
must be construed consistently with that section. Notwithstanding anything in the Plan or this Agreement to
the contrary, if the Vested portion is increased in connection with your “separation from service” within the
meaning of Section 409A, as determined by the Company), other than due to death, and if (x) you are then a
“specified employee” within the meaning of Section 409A at the time of such separation from service (as
determined

- 3 -

 

	 	 	 
	 

	 	by the Company, by which determination you agree you are bound) and (y) the
payment under such accelerated DSUs will result in the imposition of
additional tax under Section 409A if paid to you within the six month period
following your separation from service, then the payment under such
accelerated DSUs will not be made until the earlier of (i) the date six
months and one day following the date of your separation from service or
(ii) the 10th day after your date of death, and will be paid
within 10 days thereafter. Neither the Company nor you shall have the right
to accelerate or defer the delivery of any such payments or benefits except
to the extent specifically permitted or required by Section 409A. In any
event, the Company makes no representations or warranty and shall have no
liability to you or any other person, if any provisions of or payments under
this Agreement are determined to constitute deferred compensation subject to
Code Section 409A but not to satisfy the conditions of that section.
	 
	 	 
	Unsecured 

Creditor

	 	This Agreement creates a contractual obligation on the part of the
Company to make payment under the DSUs credited to your account at the time
provided for in this Agreement. Neither you nor any other party claiming an interest in
deferred compensation hereunder shall have any interest whatsoever in any specific assets
of the Company. Your right to receive payments hereunder is that of an unsecured general
creditor of Company.
	 
	 	 
	Governing Law

	 	The laws of the State of Delaware will govern all matters relating to this
Agreement, without regard to the principles of conflict of laws.
	 
	 	 
	Notices

	 	Any notice you give to the Company must follow the procedures then in effect. If
no other procedures apply, you must send your notice in writing by hand or by mail to the
office of the Company’s Secretary. If mailed, you should address it to the Company’s
Secretary at the Company’s then corporate headquarters, unless the Company directs
participants to send notices to another corporate department or to a third party
administrator or specifies another method of transmitting notice. The Company and the
Administrator will address any notices to you at your office or home address as reflected
on the Company’s personnel or other business records. You and the Company may change the
address for notice by like notice to the other, and the Company can also change the
address for notice by general announcements to participants.
	 
	 	 
	Plan Governs

	 	Wherever a conflict may arise between the terms of this Agreement and the
terms of the Plan, the terms of the Plan will control.

	 	 	 	 	 
	 	Arbitron Inc.

 	 
	Date: February 15, 2010 	By:  	/s/ Timothy T. Smith
 	 
	 	Executive VP, Chief Legal Officer and 	 
	 	Secretary 	 
	 

- 4 -

 

ACKNOWLEDGMENT

     I acknowledge I received a copy of the Plan. I represent that I have read and am familiar
with the Plan’s terms. I accept the Grant subject to all of the terms and provisions of this
Agreement and of the Plan under which the Grant is made, as the Plan may be amended in accordance
with its terms. I agree to accept as binding, conclusive, and final all decisions or
interpretations of the Administrator concerning any questions arising under the Plan with respect
to the Grant.

	 	 	 	 	 
	 	 	 
	Date:      February 18, 2010 	/s/ William T. Kerr
 	 
	 	William T. Kerr 	 
	 	 	 
	 

     No one may sell, transfer, or distribute the securities covered by the Grant without an
effective registration statement relating thereto or an opinion of counsel satisfactory to the
Company or other information and representations satisfactory to the Company that such registration
is not required.

- 5 -

 

Grant No. Kerr Initial Grant

Arbitron Inc.

2008 Equity Compensation Plan

Deferred Stock Unit

Exhibit A

Recipient Information:

Name: William T. Kerr

Signature: X /s/ William T. Kerr                    

Grant Information:

	 	 	 
	DSUs:
60,144

	 	Date of Grant: February 11, 2010
	 
	 	 
	Vesting Schedule

	 	The Grant is Vested as to one-fourth of the DSUs on
each of the next four one year anniversaries of the
Date of Grant (each a “Vesting Date”), assuming you
remain an individual service provider to the Company
through those dates.
	 
	 	 
	Special Acceleration

	 	If your employment with the Company and all
Subsidiaries ends by death or Disability, the DSUs
will vest in full.
	 
	 	 
	 

	 	If your employment ends on a termination without Cause or Retirement
(each as determined under Section 6(b) of the Employment Agreement
and as defined in Section 6(e) thereof), any unvested portions of the
DSUs will be treated as fully vested and will continue to be paid out
according to the schedule in Distributions in the Grant agreement.
	 
	 	 
	 

	 	If your employment ends with your resignation other than under a
Retirement, you will immediately forfeit any unvested DSUs and the
Shares to which they relate and any vested DSUs will continue to be
paid out according to the schedule in Distributions in the Grant
Agreement.
	 
	 	 
	 

	 	If your employment ends on a termination by the Company for Cause,
you will immediately forfeit all DSUs and the Shares to which they
relate.
	 
	 	 
	 

	 	Any acceleration of vesting under this Employment Termination section
is subject, as applicable, to Section 4(c)(iii)(e) of the Employment
Agreement and to the release requirement of Section 6(d) of the
Employment Agreement.

- 6 -

 

	 	 	 
	Change in Control

	 	If a Change in Control Event (as defined in the Plan) occurs before the final
Distribution Date and the Change in Control Event also would be an event described in Treas.
Reg. Section 1.409A-3(i)(5), any unvested DSUs you then hold will fully Vest. A Change in
Control Event that does not comport with that regulation will not cause full Vesting unless
otherwise permitted by Section 409A. The payment will be in cash (unless the Board determines
otherwise) equal to the value per share of the consideration received in the Change in Control
Event multiplied by the number of DSUs, at which point the DSUs will expire without further
obligation to you. The Board will have the authority to value any consideration received in
the Change in Control Event to the extent neither cash nor readily marketable securities.

- 7 -exv10w46

EXHIBIT 10.46

Arbitron Inc. 2010 Board of Director Compensation

The Arbitron Non-Employee Board of Directors receive the following compensation for 2010:

	 	 	 
	Annual Retainer Fee

	 	$30,000
	 
	 	 
	Independent Chairman of the Board
Additional Annual Retainer

	 	 $85,000
	 
	 	 
	Committee Chair Retainer

	 	Audit Committee: $20,000
	 

	 	Technology Strategy Committee:
	 

	 	$20,000
	 

	 	Other Committees: $10,000
	 
	 	 
	Board Meeting Fees (In person or by telephone)

	 	$1,500
	 
	 	 
	Committee Meeting Fees (In person)

	 	$1,500
	 
	 	 
	Committee Meeting Fees (By telephone)

	 	$750
	 
	 	 
	Initial Deferred Stock Unit Award

	 	Each newly elected non-employee
director will receive a
one-time grant of 4,500
deferred stock units, which
deferred stock units will vest
in three equal installments of
1,500 deferred stock units over
a three-year period and will be
payable no sooner than six
months following the director’s
termination of service as a
director of the Company.
	 
	 	 
	Annual Deferred Stock Unit Awards

	 	Beginning the year after
initial election to the board
of directors, each continuing
non-employee director will
receive an annual grant of
$100,000 worth of deferred
stock units, which deferred
stock units will vest in three
equal installments over a
three-year period and will be
payable no sooner than six
months following the director’s
termination of service as a
director of the Company.

All cash retainer fees and meeting fees payable to non-employee directors may be paid, at the
election of each director, in the form of deferred stock units, in lieu of cash.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]