Document:

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                                                                    EXHIBIT 10.2

                                                                  Execution Copy

                       PREFERRED STOCK PURCHASE AGREEMENT

                  This Preferred Stock Purchase Agreement (this "Agreement") is
                                                                 ---------
made and entered into on June 29, 2001 by and among On Command Corporation, a
Delaware corporation (the "Company"), and Ascent Entertainment Group, Inc., a
                           -------
Delaware corporation ("Buyer").
                       -----

                  WHEREAS, the Company desires to issue and sell, and Buyer
desires to purchase shares of a newly issued series of the Company's Preferred
Stock designated "Cumulative Convertible Redeemable Preferred Stock, Series D,
par value $0.01 per share" ("Series D Preferred Stock"), subject to the terms
                             ------------------------
and conditions set forth herein; and

                  WHEREAS, the Series D Preferred Stock will be issued in
separate subseries at each of the Closings (as defined below) specified in this
Agreement.

     NOW, THEREFORE, for and in consideration of the mutual promises set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1. Purchase and Sale.
        -----------------

     1.1. Purchase and Sale of Purchased Shares. (a) Upon the terms and
          -------------------------------------
conditions contained herein, (i) at the Series D-1 Closing (as defined below),
the Company shall issue, sell and deliver to Buyer up to 20,000 shares of a
subseries of the Series D Preferred Stock, designated as the "Cumulative
Convertible Redeemable Preferred Stock, Series D-1, par value $0.01 per share"
("Series D-1 Shares"), and Buyer shall purchase such shares for a purchase price
  -----------------
of $1,000 per share; (ii) at the Series D-2 Closing (as defined below), the
Company shall issue, sell and deliver to Buyer up to 20,000 shares of a
subseries of Series D Preferred Stock, designated as the "Cumulative Convertible
Redeemable Preferred Stock, Series D-2, par value $0.01 per share" ("Series D-2
                                                                     ----------
Shares"), and Buyer shall purchase such shares for a purchase price of $1,000
------
per share; and (iii) at the Series D-3 Closing (as defined below), the Company
shall issue, sell and deliver to Buyer up to 20,000 shares of a subseries of
Series D Preferred Stock, designated as the "Cumulative Convertible Redeemable
Preferred Stock, Series D-3, par value $0.01 per share" ("Series D-3 Shares"),
                                                          -----------------
and Buyer shall purchase such shares for a purchase price of $1,000 per share.
The Series D-1 Shares, Series D-2 Shares and Series D-3 Shares are referred to
herein collectively as the "Purchased Shares." The Series D-1 Closing, the
                            ----------------
Series D-2 Closing and the Series D-3 Closing are each hereinafter referred to
as a "Closing."
      -------

     (b) At each Closing, the purchase price for the applicable subseries of
Series D Preferred Stock being purchased shall be paid by wire transfer of
immediately available funds to an account designated by the Company in writing
(i) two business days prior to the Series D-1 Closing and (ii) with respect to
the Series D-2 Closing and the Series D-3 Closing, as specified in the Company
Notice (as defined below).

     (c) The issuances, sales and deliveries set forth in Section 1.1(a) hereof
shall be effected by the delivery to Buyer at each Closing of (i) the
certificate or certificates representing the shares of the applicable subseries
of Series D Preferred Stock being purchased at

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such Closing, issued in the name of Buyer or its designee and (ii) such other
documents or instruments which may be necessary, or which Buyer may reasonably
request, in order to effectively vest in Buyer good and marketable title to the
share of the subseries of Series D Preferred Stock then being purchased, free
and clear of all Liens (as defined below) and Restrictions (as defined below)
other than Permitted Restrictions (as defined below).

     1.2. Closings. (a) The closing of the purchase and sale of the Series D-1
          --------
Shares (the "Series D-1 Closing") shall be held at the offices of Buyer, 9197
             ------------------
South Peoria Street, Englewood, Colorado 80112, or at such other place as the
parties may agree, at 1:00 p.m., local time, on June 29, 2001, or at such other
date and time as the parties may agree (the "Series D-1 Closing Date").
                                             -----------------------

         (b) The closing of the purchase and sale of the Series D-2 Shares (the
"Series D-2 Closing") shall be held at the offices of Buyer, 9197 South Peoria
 ------------------
Street, Englewood, Colorado 80112, or at such other place as the parties may
agree, at 1:00 p.m., local time, on the date specified in a Company Notice, or
at such other date and time as the parties may agree (the "Series D-2 Closing
                                                           ------------------
Date"); provided, however, that such Series D-2 Closing Date shall be on a
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Business Day after the Series D-1 Closing Date and prior to September 30, 2001.

         (c) The closing of the purchase and sale of the Series D-3 Shares (the
"Series D-3 Closing") shall be held at the offices of Buyer, 9197 South Peoria
 ------------------
Street, Englewood, Colorado 80112, or at such other place as the parties may
agree, at 1:00 p.m., local time, on the date specified in a Company Notice, or
at such other date and time as the parties may agree (the "Series D-3 Closing
                                                           ------------------
Date"; each of the Series D-1 Closing Date, the Series D-2 Closing Date and the
----
Series D-3 Closing Date is hereinafter sometimes referred to as a "Closing
                                                                   -------
Date"); provided, however, that such Series D-3 Closing Date shall be on a
----    --------  -------
Business Day after September 30, 2001 and prior to December 31, 2001.

         (d) "Company Notice" shall mean a written notice from the Company,
              --------------
signed by its Chief Financial Officer, to Buyer (i) specifying the proposed
Closing Date of the Series D-2 Closing or Series D-3 Closing, as applicable,
which specified date shall not be less than three (3) Business Days subsequent
to the date such notice is delivered to Buyer, (ii) setting forth the number of
shares of the subseries of Series D Preferred Stock to be purchased on such
Closing Date and (iii) setting forth a revised representation as to the
capitalization of the Company as of a date not more than 30 days prior to the
proposed Closing Date, which representation shall be deemed to replace in its
entirety the representation set forth in the second sentence of Section 2.4 with
respect to such Closing.

     1.3. Conditions to Buyer's Obligation to Close. The obligations of Buyer to
          -----------------------------------------
acquire the applicable subseries of the Series D Preferred Stock at the
applicable Closing shall be subject to the satisfaction or waiver in writing of
the following conditions precedent:

         (a) All of the covenants to be performed by the Company prior to the
applicable Closing shall have been performed in all material respects on or
before such Closing Date;

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         (b) The representations and warranties of the Company contained herein
shall, if qualified by materiality, be true and correct, and if not so
qualified, be true and correct in all material respects, in each case on and as
of the applicable Closing Date as though they had been made on and as of such
Closing Date; provided that for purposes of this Section 1.3(b) the
              --------
representation set forth in the second sentence of Section 2.4 shall be deemed
replaced in its entirety with the corresponding representation set forth in the
Company Notice applicable to such Closing;

         (c) Buyer shall have received a certificate of an executive officer
of the Company, dated as of the applicable Closing Date, evidencing compliance
with the conditions set forth in Sections 1.3(a) and 1.3(b);

         (d) No permanent or preliminary injunction or restraining order or
other order by any governmental authority, or other legal restraint or
prohibition preventing consummation of the transactions contemplated hereby as
provided herein shall be in effect and no action shall have taken place and
remain in effect which seeks to obtain damages against Buyer or the Company in
connection with the transactions contemplated by this Agreement;

         (e) With respect to the Series D-2 Closing and the Series D-3 Closing,
the purchase and sale of the applicable subseries of Series D Preferred Stock
which was to have occurred prior to the applicable Closing shall have occurred
in accordance with the terms of this Agreement; and

         (f) With respect to the Series D-2 Closing and the Series D-3 Closing,
the Company shall be a Subsidiary of Liberty Media Corporation at the applicable
Closing.

     1.4. Conditions to the Company's Obligation to Close. The obligations of
          -----------------------------------------------
the Company to sell the applicable subseries of the Series D Preferred Stock at
the applicable Closing shall be subject to the satisfaction or waiver in writing
of the following conditions precedent:

         (a) The representations and warranties of Buyer contained herein shall,
if qualified by materiality, be true and correct, and if not so qualified, be
true and correct in all material respects in each case on and as of the
applicable Closing Date, as though they had been made on and as of such Closing
Date;

         (b) The Company shall have received a certificate of an executive
officer of the Buyer, dated as of the applicable Closing Date, evidencing
compliance with the conditions set forth in Sections 1.4(a); and

         (c) No permanent or preliminary injunction or restraining order or
other order by any governmental authority, or other legal restraint or
prohibition preventing consummation of the transactions contemplated hereby as
provided herein shall be in effect and no action shall have taken place and
remain in effect which seeks to obtain damages against Buyer or the Company in
connection with the transactions contemplated by this Agreement.

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     2. Representations and Warranties of the Company. The Company represents
        ---------------------------------------------
and warrants to Buyer as of the date hereof and as of the applicable Closing
Date, as follows:

     2.1. Authority. (a) The Company is a corporation duly organized, validly
          ---------
existing and in good standing under the laws of the State of Delaware, and has
all requisite power and authority to conduct its business as now being conducted
and to enter into this Agreement and to perform its obligations hereunder. The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of the Company.

         (b) The Certificate of Designations establishing the rights and
preferences of the shares of Series D Preferred Stock (the "Certificate of
                                                            --------------
Designations") has been approved by the Company's Board of Directors in
------------
accordance with the Company's Amended and Restated Certificate of Incorporation
and Delaware law and, prior to the Series D-1 Closing will have been duly filed
and become effective under Delaware law.

     2.2. Issuance of Shares. The shares of the subseries of the Series D
          ------------------
Preferred Stock to be issued and purchased at the applicable Closing, upon
issuance and delivery against payment therefor at such Closing in accordance
with the terms and conditions of this Agreement, will be duly authorized,
validly issued, fully paid and non-assessable, will possess all of the rights,
privileges and preferences provided therefor in the Certificate of Designations,
will be free of all Liens and Restrictions other than Permitted Restrictions,
and will not be issued in violation of any preemptive rights.

     2.3. Binding Agreement. This Agreement has been duly executed and delivered
          -----------------
by the Company and is a legal, valid and binding obligation of the Company,
enforceable in accordance with its terms, except insofar as enforceability may
be limited by principles governing the availability of equitable remedies.

     2.4. Capitalization. At the date hereof, the authorized capital stock of
          --------------
Company consists of (a) 150,000,000 shares of common stock, par value $.01 per
share ("Common Stock"), and (b) 10,000,000 shares of preferred stock, par value
        ------------
$.01 per share ("Preferred Stock"). As of the close of business on May 11, 2001,
                 ---------------
(i) 30,843,065 shares of Common Stock were issued and outstanding, (ii) 38,500
shares of Preferred Stock were issued and outstanding, 13,500 of which had been
designated as "Convertible Participating Preferred Stock, Series A, par value
$.01 per share" ("Series A Preferred Stock"), 15,000 of which had been
                  ------------------------

designated as "Cumulative Redeemable Preferred Stock, Series B, par value $.01
per share" ("Series B Preferred Stock"), and 10,000 of which had been designated
             ------------------------
as "Cumulative Redeemable Preferred Stock, Series C, par value $.01 per share"
("Series C Preferred Stock") and (iii) an aggregate of 12,708,025 shares of
  ------------------------
Common Stock were reserved for issuance upon the exercise, exchange or
conversion of securities which are convertible into (including the Series A
Preferred Stock) or exercisable or exchangeable for Common Stock, and no shares
of Common Stock were held (x) by the Company in its treasury or (y) by any
Subsidiary of Company. Except as specified in this Section 2.4, there are no
subscriptions, options, warrants, calls, rights, commitments or any other
agreements of any character to or by which the Company is a party or is bound
which, directly or indirectly, obligate Company to issue, sell or deliver or
cause to be issued, sold or delivered any shares of Common Stock or Preferred
Stock or any other capital

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stock or equity interest of Company or any securities convertible into, or
exercisable or exchangeable for, or evidencing the right to subscribe for, any
such shares or interests, or obligating Company to grant, extend or enter into
any such subscription, option, warrant, call or right. All issued and
outstanding shares of Common Stock, Series A Preferred Stock, Series B Preferred
Stock and Series C Preferred Stock have been validly issued and are fully paid
and nonassessable, are not subject to and have not been issued in violation of
any preemptive rights and have not been issued in violation of any Federal or
state securities laws.

     2.5. No Violation. None of the execution or delivery by the Company of this
          ------------
Agreement, the performance by the Company of its obligations hereunder, nor the
consummation of the transactions contemplated hereby (i) has resulted or will
result (with or without notice, lapse of time or otherwise) in a breach of the
terms or conditions of, a default under, a conflict with, or the acceleration of
(or the creation in any person of any right to cause the acceleration of) any
performance or any increase in any payment required by, or the termination,
suspension, modification, impairment or forfeiture (or the creation in any
person of any right to cause the termination, suspension, modification,
impairment or forfeiture) of any material rights or privileges of the Company
under (A) the certificate of incorporation, bylaws or other constituent
documents of the Company, (B) any agreement, contract, arrangement or
understanding, written or oral (collectively, "Contract"), or any judgment,
                                               --------
writ, order or decree (collectively, "Judgment") to which the Company is a party
                                      --------
or by or to which the Company, its properties, assets or business or any of the
Purchased Shares being sold by the Company are or may be subject, bound or
affected or (C) any applicable law, rule or regulation (collectively, "Law");
                                                                       ---

(ii) has resulted or will result (with or without notice, lapse of time or
otherwise) in the creation, imposition, or foreclosure of or right to exercise
or foreclose any Lien or Restriction of any nature whatsoever upon or in any of
(A) the assets of the Company (other than the Purchased Shares being sold by the
Company) or (B) the Purchased Shares; or (iii) assuming that the issuance, sale
and delivery to Buyer of the Purchased Shares is a transaction exempt from
registration under the Securities Act of 1933, as amended (the "Securities
                                                                ----------
Act"), and from qualification or registration under applicable state securities
---
laws, requires or will require the Companyto make any filing with, to give any
notice to or to obtain any permit, authorization, consent or approval of any
person.

     2.6. Proceedings. Except as set forth in the Company SEC Reports (as
          -----------

defined below) publicly filed with the Securities and Exchange Commission (the
"SEC") prior to the date of this Agreement, there is no action, suit,
 ---
investigation or proceeding, governmental or otherwise ("Proceeding"), pending
                                                         ----------
or, to the Company's knowledge, threatened against the Company or its
affiliates, directors, officers, employees or agents which has a reasonable
likelihood of having a material adverse effect on the business, financial
condition or results of operations of the Company and its Subsidiaries taken as
a whole or on the ability of the Company to perform its obligations under this
Agreement or with respect to the Purchased Shares, nor is there any basis for
any such Proceeding known to the Company.

     2.7. No Brokers. None of the Company, its affiliates or any of their
          ----------
respective directors, officers, employees or agents, as such, have entered into
any Contract with any person which will result in the obligation of Buyer to pay
any finder's fees, brokerage or agent's commissions or other like payments in
connection with the negotiations leading to this Agreement or the consummation
of the transactions contemplated hereby.

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     2.8. SEC Filings; Financial Statements.
          ---------------------------------

         (a) The Company has filed all forms, reports and documents required to
be filed by it with the SEC since December 31, 1999, and has heretofore made
available to Buyer, in the form filed with the SEC (excluding any exhibits
thereto), (i) its Annual Reports on Form 10-K for the fiscal years ended
December 31, 1999 and 2000, (ii) its Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2000, June 30, 2000, September 30, 2000 and March 31,
2001, (iii) all proxy statements relating to the Company's meetings of
stockholders (whether annual or special) held on or after December 31, 1999, and
(iv) all other forms, reports and other registration statements, including any
and all amendments or supplements to any of the items referred to herein, filed
by the Company with the SEC since December 31, 1999 (the forms, reports and
other documents referred to in clauses (i), (ii), (iii) and (iv) above being
referred to herein, collectively, as the "Company SEC Reports"). The Company SEC
------------------- Reports (x) were prepared in accordance with the
requirements of the Securities Act and the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), as ------------ the case may be, and the rules and
regulations thereunder, and (y) did not at the time they were filed contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements made therein, in
the light of the circumstances under which they were made, not misleading.

         (b) Each of the consolidated financial statements (including, in each
case, any notes thereto) contained in the Company SEC Reports was prepared in
accordance with United States generally accepted accounting principles applied
on a consistent basis throughout the periods indicated (except as may be
indicated in the notes thereto), and each fairly presented the consolidated
financial position, results of operations and cash flows of the Company and its
consolidated Subsidiaries as at the respective dates thereof and for the
respective periods indicated therein (subject, in the case of unaudited
statements, to normal and recurring year-end adjustments which were not and are
not expected, individually or in the aggregate, to be material in amount). Since
December 31, 2000, there has been no change in any of the significant accounting
(including tax accounting) policies, practices or procedures of the Company or
any of its Subsidiaries.

         (c) Except as and to the extent set forth in the Company SEC Reports
publicly filed with the SEC prior to the date of this Agreement, the Company and
its Subsidiaries have not incurred any liabilities or obligations of any nature
(whether accrued, absolute, contingent or otherwise), other than liabilities and
obligations which have been incurred in the ordinary course of business.

     2.9. Absence of Certain Changes and Events. Except as disclosed in the
          -------------------------------------
Company SEC Reports publicly filed with the SEC prior to the date of this
Agreement, since December 31, 2000, (a) the Company and the its Subsidiaries
have conducted their respective businesses only in the ordinary course and (b)
there has not been any material adverse change in the business, financial
condition or results of operations of the Company and its Subsidiaries, taken as
a whole.

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     3. Representations, Warranties and Covenants of Buyer. Buyer represents and
        --------------------------------------------------
warrants to the Company as of the date hereof and as of the applicable Closing
Date, as follows:

     3.1. Authority. Buyer is a corporation duly organized, validly existing and
          ---------
in good standing under the laws of the State of Delaware and has all requisite
power and authority to conduct its business and operations as now being
conducted and to enter into this Agreement and to perform its obligations
hereunder. The execution, delivery and performance by Buyer of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of Buyer.

     3.2. Binding Agreement. This Agreement has been duly executed and delivered
          -----------------
by Buyer and is a legal, valid and binding obligation of Buyer, enforceable in
accordance with its terms, except insofar as enforceability may be limited by
principles governing the availability of equitable remedies.

     3.3. No Violations. Except, as to clauses (ii), (iii), and (iv) below, as
          -------------
would not have, individually or in the aggregate, a material adverse effect on
Buyer's ability to perform its obligations hereunder, none of the execution or
delivery by Buyer of this Agreement, the performance by Buyer of its obligations
hereunder or the consummation of the transactions contemplated hereby will (i)
violate or conflict with any term or provision of the certificate of
incorporation or bylaws (or other constituent documents) of Buyer, (ii) violate
any provision of any Law or Judgment applicable to Buyer or by which any of its
properties or assets are bound or affected, (iii) require any consent, approval,
filing or notice under any provision of any Law or Judgment applicable to Buyer,
or (iv) require any consent, approval or notice under, or violate, or be in
conflict with, or constitute a breach of or default under (with or without the
giving of notice or the lapse of time or both), or permit the termination of any
provision of, or result in the acceleration of (or give anyone the right to
accelerate) the maturity or performance of any obligation of Buyer under, any
note, bond, indenture, mortgage, deed of trust, lease, franchise, permit,
authorization, license, contract, instrument or other agreement or commitment to
which Buyer is a party or by which Buyer, or any of its assets or properties are
bound or encumbered.

     3.4. No Brokers. None of Buyer, its affiliates or any of their respective
          ----------
directors, officers, employees or agents, as such have entered into any Contract
with any person which will result in the obligation of the Company to pay any
finder's fees, brokerage or agent's commissions or other like payments in
connection with the negotiations leading to this Agreement or the consummation
of the transactions contemplated hereby.

     3.5. Investment Representations and Covenants.
          ----------------------------------------

         (a) Buyer acknowledges that it is acquiring the shares of the subseries
of the Series D Preferred Stock to be purchased by it on the applicable Closing
Date solely for Buyer's own account, for investment purposes, and not with a
view to, or for resale in connection with, any distribution of such shares.
Buyer understands that the Purchased Shares have not been registered under the
Securities Act or registered or qualified under any state securities laws by
reason of specific exemptions under the provisions thereof which depend in part
upon Buyer's investment intent and on the other representations made by Buyer in
this Purchase Agreement. Buyer understands that the Company is relying upon
Buyer's representations and agreements

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contained in this Purchase Agreement for the purpose of determining whether this
transaction meets the requirements for such exemptions.

         (b) Buyer agrees that (i) Buyer will not sell, assign, pledge, give,
transfer or otherwise dispose of the Purchased Shares or any interest therein,
or make any offer or attempt to do any of the foregoing, unless such transaction
is pursuant to a registration of the Purchased Shares under the Securities Act
and all applicable state securities laws or a transaction that is exempt from
the registration provisions of the Securities Act and all applicable state
securities laws, (ii) the certificate(s) representing the Purchased Shares bear
a legend making reference to the foregoing restrictions, and (iii) the Company
and any transfer agent for the Purchased Shares shall not be required to
register or give effect to any purported transfer of the Purchased Shares except
upon evidence of compliance with the foregoing restrictions.

     4.   Indemnification.
          ---------------

     4.1. Mutual Indemnification.
          ----------------------

         (a) Subject to written notice of such claim for indemnification being
given to such party within the appropriate survival period referred to in
Section 4.2 and further subject to the proviso set forth in clause (ii) below,
the Company covenants and agrees to indemnify, defend and hold harmless Buyer
and its affiliates and their respective stockholders, directors, officers,
employees, agents, successors and assigns, and Buyer covenants and agrees to
indemnify, defend and hold harmless the Company and its affiliates and their
respective stockholders, directors, officers, employees, agents, successors and
assigns from and against:

         (i)  all losses, damages, liabilities, deficiencies, obligations, costs
              and expenses resulting from or arising out of any
              misrepresentation or breach of warranty or any nonperformance or
              breach of any covenant or agreement of such indemnifying party
              contained in this Agreement; and

         (ii) all claims, actions, suits, proceedings, demands, Judgments,
              assessments, fines, interest, penalties, costs and expenses
              (including, without limitation, settlement costs and reasonable
              legal, accounting, experts and other fees, costs and expenses)
              incident or relating to or resulting from any of the foregoing.

         (b) Any party entitled to indemnification under Section 4.1(a) (an
"indemnified party") seeking indemnification from a party obligated to indemnify
 -----------------
such party under Section 4.1(a) (an "indemnifying party") shall give prompt
                                     ------------------
notice to the indemnifying party of any claim as to which indemnification is
sought and will give the indemnifying party the right to participate in and, if
it so desires, to control, at its own expense, the conduct of the defense of any
such claim and any litigation arising out of such claim, with counsel reasonably
satisfactory to the indemnified party. Notwithstanding an indemnifying party's
election to assume control of the defense of such claim, the indemnified party
shall have the right to employ separate counsel and to participate in the
defense of such claim, and the indemnifying party shall bear the reasonable fees
and expenses of such separate counsel if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel
with a conflict of interest, (ii) the actual or potential defendants in, or
targets of, any such claim include

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both the indemnifying party and the indemnified party, and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it which are different from or additional to those
available to the indemnifying party (in which case the indemnifying party shall
not have the right to assume the defense of such claim on behalf of the
indemnified party) or (iii) the indemnifying party has failed to retain counsel
reasonably satisfactory to the indemnified party within a reasonable time of the
notice of the claim. An indemnifying party shall not be liable for any
settlement of any action or claim effected without its consent, which consent
shall not be unreasonably withheld. If an indemnifying party assumes the defense
of a claim, no settlement thereof may be effected without the indemnified
party's consent unless the sole relief is monetary damages that are to be paid
in full by the indemnifying party and there is no finding or admission of any
violation of law.

     4.2. Survival of Representations and Warranties. The representations and
          ------------------------------------------

warranties contained in or made pursuant to this Agreement shall survive the
applicable Closing at which they are made or deemed to be made and will remain
in full force and effect for a period of twelve (12) months after the applicable
Closing Date at which such representations and warranties were made or deemed to
be made; provided that the Company's representations and warranties set forth in
Sections 2.1, 2.2 and 2.3 shall survive indefinitely.

     5.   Miscellaneous.
          -------------

     5.1. Governing Law. This Agreement shall be construed in accordance with
          -------------
and governed by the laws of the State of Delaware, without regard to principles
of conflicts of laws.

     5.2. Definitions. As used in this Agreement, the following terms have the
          -----------
following meanings:

          (a) "Business Day". Any day other than a Saturday, Sunday or a day on
               ------------
which banking institutions in Denver, Colorado are not required to be open.

          (b) "Lien" shall mean any security interest, lien, claim, charge,
               ----
restrictive agreement, pledge, adverse interest or other encumbrance of any
kind.

          (c) "Permitted Restriction", with respect to the Purchased Shares,
               ---------------------
as the case may be, shall mean Restrictions (i) on the transfer of such shares
under applicable federal and state securities laws or (ii) applicable to such
shares created by Buyer.

          (d) "person" shall mean and include any individual, partnership, joint
               ------
venture, corporation, trust, unincorporated organization or association or any
other entity or association of any kind and any governmental or regulatory
authority, federal, state, local or foreign government, any political
subdivision of any thereof and any court, panel, judge, board, bureau,
commission, agency or other entity or body exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government.

          (e) "Restriction", with respect to any capital stock or other
               -----------
security, shall mean any voting or other trust or agreement, option, warrant,
escrow arrangement, proxy, buy-sell agreement, power of attorney, stockholders'
agreement or other Contract, any Judgment or any Law which, conditionally or
unconditionally, (i) grants to any person the right to purchase or

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<PAGE>

otherwise acquire, or obligates any person to sell or otherwise dispose of or
issue, or otherwise results or, whether upon the occurrence of any event or with
notice or lapse of time or both or otherwise, may result in any person acquiring
(A) any of such capital stock or other security, (B) any of the proceeds of, or
any distributions paid or which are or may become payable with respect to, any
of such capital stock or other security, or (C) any interest in such capital
stock or other security or any such proceeds or distributions; (ii) restricts
or, whether upon the occurrence of any event or with notice or lapse of time or
both or otherwise, may restrict the transfer or voting of, or the exercise of
any rights or the enjoyment of any benefits arising by reason of ownership of,
any of such capital stock or other security or any such proceeds or
distributions; or (iii) creates or, whether upon the occurrence of any event or
with notice or lapse of time or both or otherwise, may create a Lien or
purported Lien affecting such capital stock or other security, proceeds or
distributions.

          (f) "Subsidiary" means, with respect to any person, (i) a corporation
               ----------
a majority of the voting power of whose capital stock with voting power, under
ordinary circumstances, to elect directors is at the time, directly or
indirectly, owned by such person, by a subsidiary of such person, or by such
person and one or more subsidiaries of such person, (ii) a partnership in which
such person or a subsidiary of such person is, at the date of determination, a
general partner of such partnership and has the power to direct the policies and
management of such partnership or (iii) any other person in which such person, a
subsidiary of such person or such person and one or more subsidiaries of such
person, directly or indirectly, at the date of determination thereof, has (A) at
least a majority ownership interest or (B) the power to elect or direct the
election of a majority of the members of the board of directors or other
governing body of such person.

     5.3. Expenses. The Company agrees to pay all expenses incurred by Buyer in
          --------
connection with the negotiation and execution of this Agreement and the
consummation of the transactions contemplated hereby, including all fees and
disbursements of its legal counsel and the payment of any stock transfer or
stamp taxes.

     5.4. Restrictive Legend. Buyer acknowledges and agrees that each
          ------------------
certificate representing the Purchased Shares will (unless the Purchased Shares
evidenced by such certificate shall have been registered under the Securities
Act) be stamped or otherwise imprinted with a legend in substantially the
following form (in addition to any additional legend required under applicable
state securities laws):

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION, AND, UNLESS SO REGISTERED, THEY MAY NOT BE SOLD, OFFERED FOR
SALE, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF SUCH ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION."

     5.5. Counterparts. This Agreement may be executed in several counterparts
          ------------
and as so executed shall constitute one agreement binding on the parties hereto.

                                       10

<PAGE>

     5.6. Further Actions After the Closings. (a) During the period from the
          ----------------------------------
date hereof to the date of the Series D-3 Closing, the Company shall deliver to
Buyer within two (2) Business Days of the date of filing with the SEC a copy of
each form, report and document filed by the Company with the SEC after the date
hereof.

          (b) If, subsequent to any Closing Date, further documents are
reasonably requested in order to carry out the provisions and purposes of this
Agreement, the parties hereto shall execute and deliver such further documents.

     5.7. Severability. In the event that any part or parts of this Agreement
          ------------
shall be held to be unenforceable to its or their full extent, then it is the
intention of the parties hereto that such part or parts shall be enforced to the
full extent permitted under the laws, and, in any event, that all other parts of
this Agreement shall remain valid and fully enforceable as if the unenforceable
part or parts had never been a part hereof.

     5.8. Amendments. This Agreement may be amended only by written instrument
          ----------
signed by all parties.

     5.9. Notices. Any notice or other communication required or contemplated by
          -------
the terms of this Agreement shall be delivered in person or sent by telecopy,
overnight courier, or registered or certified mail, postage prepaid, return
receipt requested. Any such notice or other communication shall be addressed to
the intended recipient at the address set forth below such party's signature on
the signature page hereof, or at such other address of which such party shall
have given notice as herein provided. Notice shall be deemed given on the date
of delivery, in the case of personal delivery or telecopy, or on the delivery or
refusal date, as specified on the return receipt, in the case of overnight
courier or registered or certified mail.

     5.10. Assignment. Neither this Agreement nor any of the rights, interests
           ----------
or obligations of a party hereunder may be assigned to any person (whether by
operation of law or otherwise) without the prior written consent of the other
party; provided, that Buyer may assign, without the consent of the Company, its
       --------
rights and obligations hereunder to any affiliate of Buyer. Subject to the
preceding sentence, this Agreement will be binding upon, inure to the benefit of
and be enforceable by the parties hereto and their respective successors and
assigns.

     5.11. Entire Agreement. The provisions of this Agreement set forth the
           ----------------
complete understanding and intention of the parties with respect to the subject
matter hereof and supersede all prior agreements or understandings, whether
written or oral, relating to the subject matter hereof.

                            [SIGNATURE PAGE FOLLOWS]

                                       11

<PAGE>

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

                                  ON COMMAND CORPORATION

                                  By:  /s/  William D. Myers
                                       ____________________________
                                       Name:  William D. Myers
                                       Title: Executive Vice President and Chief
                                              Financial Officer

                                  Address for Notices:

                                  7900 East Union Avenue
                                  Tower III
                                  Denver, CO 80237
                                  Attention:  Pamela Strauss

                                  ASCENT ENTERTAINMENT GROUP, INC.

                                  By:  /s/  Gary S. Howard
                                       ____________________________
                                       Name:  Gary S. Howard
                                       Title: Executive Vice President and Chief
                                              Operating Officer

                                  Address for Notices:

                                  c/o Liberty Media Corporation
                                  9197 South Peoria Street
                                  Englewood, Colorado 80112
                                  Attention:  Elizabeth M. Markowski

                                       12ex10-1

Exhibit 10.1

Software Development and Consulting Agreement

between

Arbitron Inc. and Statistical Research Inc.

      THIS AGREEMENT is made this 2nd day of July, 2001 (the “Effective Date”)
by and between Arbitron Inc., a Delaware corporation (“Arbitron”) with offices
at 142 West 57th Street, New York, New York 10019 and Statistical Research,
Inc. (“SRI”) a New Jersey corporation with offices at 111 Prospect Street,
Westfield, New Jersey 07090.

BACKGROUND

      A. Arbitron and SRI have entered into an Asset Purchase Agreement dated
effective as of July 2, 2001 (the “Asset Purchase Agreement”) wherein Arbitron
is purchasing from SRI certain assets comprising SRI’s Radio All Dimensional
Audience Research business (hereinafter “RADAR”) as specified therein. This
Agreement is being entered into as a condition to the closing under the Asset
Purchase Agreement (the “Closing”).

      B. Arbitron desires the services described hereunder to ensure the
continued and profitable operation of RADAR after the Closing, and the
transition of the software used for RADAR from processing telephone interview
based data to processing diary based data.

      NOW THEREFORE, in consideration of and as part of the transaction set
forth in the Asset Purchase Agreement and the mutual agreements contained
herein, the parties agree as follows:

1. Services Provided; Payment.

      A. Commencing on the Effective Date and continuing until terminated as
provided by Section 10 herein, SRI shall provide to Arbitron the services and
software, including any modifications and enhancements thereto (respectively
referred to as the “Services” and the “Software”) which are more particularly
described in Schedule ‘A’ attached to this Agreement and which are incorporated
herein.

      B. Arbitron shall pay SRI for the Services and Software in accordance with
Schedule ‘A’.

2. Term.

      This Agreement shall commence on the Effective Date and shall continue in
accordance with the Term set forth in Schedule ‘A’, or unless otherwise
terminated in accordance with the provisions set forth in Section 9 or in
Schedule ‘A’.

3. Proprietary Rights; Disclosures of Intellectual Property:

      (a) All work performed under this Agreement, and all Services, Software,
materials, products, deliverables developed or prepared for Arbitron by SRI
under this Agreement, are the property of Arbitron and all title and interest
therein shall vest in Arbitron and shall be deemed to be a Work Made for Hire
and made in the course of performing the services rendered hereunder. To the
extent that title to any such works may not, by operation of law, vest in
Arbitron or such works may not be considered Works Made for Hire under
applicable law, all rights, title and interest therein are hereby irrevocably
assigned to Arbitron. All such materials shall belong exclusively to Arbitron,
with Arbitron having the right to obtain and to hold in its own name,
copyrights, registrations or such other protection as may be appropriate to the
subject matter, and any extensions and renewals thereof. SRI agrees to give
Arbitron and any person designated by

Arbitron, reasonable assistance required to perfect the rights defined in
this Paragraph without further payment or compensation.

      SRI shall promptly make a complete written disclosure to Arbitron of any
invention, discovery or improvement which, to SRI’s knowledge, is unique or
novel, whether patentable or not, conceived of or first actually reduced to
practice, solely or jointly, by Arbitron’s or SRI’s employees during the term
of this Agreement and in the performance of services hereunder (hereinafter
referred to, whether actually disclosed by SRI or not, as “Disclosed Subject”).
As to any such Disclosed Subject, SRI shall specifically point out, in
writing, the features or concepts which SRI believes to be new or different.

      In consideration of the payment by Arbitron to SRI of the amounts
specified hereunder for the performance of work, SRI hereby agrees to assign
and does hereby assign to Arbitron all right, title and interest in and to any
such Disclosed Subject; and SRI further agrees to execute, acknowledge and
deliver all such papers prepared by Arbitron with the cooperation of SRI as may
be necessary to obtain patents for such Disclosed Subject in any and all
countries of the world and to vest title thereto in Arbitron, its successors
and assigns, and provide, at Arbitron’s expense, all assistance reasonably
required to assure Arbitron the rights thereto. SRI shall have each employee
performing work hereunder execute a Contract Employee Invention Agreement in
the form attached hereto sufficient to comply with this Agreement.

      There shall be no accountability to SRI for royalties or other payments
with respect to the use of any such Disclosed Subject by Arbitron or its
subsidiaries or licensees.

      Unless otherwise requested by Arbitron, upon the completion of the
Services to be performed under this Agreement or upon the earlier termination
of this Agreement (other than upon default for non-payment by Arbitron that is
not later cured either through written agreement of the parties hereto or
through satisfaction by Arbitron of a judgment against it to make such
payments), SRI shall immediately turn over to Arbitron all materials and
deliverables acquired or developed by SRI pursuant to this Agreement.

4. Confidential Information: Any specifications, drawings, sketches, models,
samples, data, computer programs (including all source code and object code) or
documentation, technical information, methods of operation, Arbitron client
information, SRI client information finances, or other business information
or confidential information of either Arbitron or SRI (the “Confidential
Information”) and furnished or disclosed by one party to the other hereunder
shall be deemed the property of and, when in tangible form, shall be returned
to the providing party upon completion or termination of this Agreement;
provided, however, that any Confidential Information created by either party in
accordance with or in furtherance of the terms of this Agreement shall be
deemed the property of Arbitron, and SRI shall be deemed the receiving party.
Unless such information was previously known to the receiving party free of any
obligation to keep it confidential, or has been or is subsequently made public
by the providing party or a third party with a right to disclose such
information, it shall be held in confidence by the receiving party, shall not
be disclosed to any third party by the receiving party, shall be used only for
the purposes hereunder, and may be used for other purposes only upon such terms
and conditions as may be mutually agreed upon in writing; provided, however,
that the receiving party may disclose the Confidential Information as may be
required by law, rule, regulation or court order or decree, or if the receiving
party reasonably determines (following advance notice to and opportunity to
comment by the other party) that such disclosure is necessary in order to
comply with applicable law.

      Both parties acknowledge that disclosure of any Confidential Information
by the receiving party will give rise to irreparable injury to the providing
party, inadequately compensable in damages. Accordingly, the providing party
may seek and obtain injunctive relief against the breach or threatened breach
of the foregoing undertakings, in addition to any other legal remedies which
may be available. Both parties acknowledge and agree that the covenants

2

contained herein are necessary for the protection of legitimate business
interests of the providing party and are reasonable in scope and content.

      Notwithstanding anything to the contrary, in the event that SRI
incorporates any of its Confidential Information into the Services and/or
Software, Arbitron shall have the right to use, disclose and sublicense such
Confidential Information.

5. Warranty: SRI warrants that the Software as accepted by Arbitron provided
hereunder shall at all times conform to the specifications set forth in the
Statement of Work attached hereto as Schedule A. The Software as accepted by
Arbitron shall function properly and in conformity with such specifications for
a period of one (1) year following the date of Arbitron’s acceptance of the
Software, and for a period of one (1) year from the date of Arbitron’s
acceptance of the Software SRI shall use its best efforts to correct any
defects in the Software, as accepted by Arbitron, so that such Software shall
function properly and in conformity with the required specifications. At the
time of acceptance by Arbitron of the Software and for one (1) year thereafter,
SRI will use its best efforts to keep the Software as accepted by Arbitron free
of all viruses, “trojan horses,” and other similar defects or deficiencies. The
Services provided by SRI shall be produced in a workmanlike manner and shall be
rendered by qualified personnel who will perform the tasks assigned consistent
with good professional practice and the state of the art involved. In addition,
SRI represents and warrants that to its knowledge it has the right to provide
the Software without violating any rights of any third party, that there is
currently no actual or threatened suit by any such third party based on an
alleged violation of such right, and that to SRI’s knowledge Arbitron shall
receive free, good and clear title to all Software, Services and Disclosed
Subject(s) developed and/or provided under this Agreement. SRI warrants and
represents that it has not and shall not grant any rights to any third parties
inconsistent with the provisions of this Agreement.

SRI hereby warrants that it has not granted to any other party exclusive rights
to the Software in the specific areas described herein. SRI further warrants
that no other party has exclusive rights to its Services and/or, to SRI’s
knowledge, Software in the specific areas described herein and that SRI is in
no way compromising any rights or trust relationships between any other party
and SRI, or creating a conflict of interest, or any known or likely possibility
thereof, for SRI or for Arbitron. SRI further warrants that all Services and
Software provided hereunder will be performed in accordance with all applicable
Federal, State, or Local laws, regulations and executive orders.

EXCEPT FOR THE LIMITED WARRANTIES SET FORTH IN THIS SECTION 5, SRI MAKES NO
WARRANTIES HEREUNDER, AND EXCEPT AS OTHERWISE SET FORTH IN THIS SECTION 5, SRI
EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.

6. Indemnification; Injunction Remedy: SRI shall indemnify and hold harmless
Arbitron for any loss, injury, damage, expense or liability and all costs, fees
and expenses (including reasonable attorneys’ fees) that may result by reason
of: (a) any breach by SRI of SRI’s representations or warranties, and (b) any
infringement, or claim of infringement, of any patent, trademark, copyright or
other proprietary right of any third party based on the Software and/or
Services provided under this Agreement to Arbitron hereunder. SRI shall defend
or settle, provided that such settlement does not prejudice Arbitron’s rights,
at its own expense, any action for which it is responsible hereunder. Each
party shall notify the other promptly of any claim of infringement for and
shall provide reasonable cooperation to the other party to facilitate the
defense of any such claim. Notwithstanding anything in this Agreement to the
contrary, if any claim brought by Arbitron under this Section 6 is a result of
any infringement, or claim of infringement, of any patent, trademark, copyright
or other proprietary right of any third party based on the Software and/or
Services provided under this Agreement to Arbitron hereunder was not known by
SRI at the time SRI provided Arbitron notice of SRI’s achieving the Acceptance

3

Criterion (an “SRI Unknown Infringement”), then SRI’s obligation to indemnify
Arbitron under clause (b) of this first paragraph of Section 6 shall not exceed
a maximum of $2,000,000. All costs, fees, judgments, settlements and expenses
that may result by reason of defending or settling an SRI Unknown Infringement
claim that exceed $2,000,000 shall be born 50% by SRI and 50% by Arbitron;
provided that SRI’s share shall in no event exceed an aggregate of $5,000,000
(including the $2,000,000).

In the event of an injunction preventing Arbitron’s use of the Services and/or
Software or if the Services and/or Software are likely to become the subject of
a claim of violation of the rights of a third party, SRI shall, at Arbitron’s
election and SRI’s sole expense: (a) replace or modify the infringing Services
and/or Software; (b) obtain for Arbitron the right to continue to use the
Services and/or software; or (c) refund amount paid for the Services and/or
Software. The foregoing shall be in addition to SRI’s indemnification
obligation to Arbitron.

For the avoidance of doubt, SRI’s representations relating to infringement and
SRI’s obligations to defend, indemnify and hold harmless with respect to any
infringement or claim of infringement shall not apply if and to the extent that
any infringement or claimed infringement relates to modifications in the
Software by Arbitron, and Arbitron shall defend, indemnify and hold harmless
SRI to the extent that any infringement or claims of infringement relate to
modifications in the Software by Arbitron.

7. Acceptance: When SRI determines the Acceptance Criterion (as defined in
Schedule A) has been achieved, SRI shall provide written notification of such
fact to Arbitron. Arbitron shall have an acceptance period of thirty (30)
working days, from the date of receipt of SRI’s notice, in which to conduct
tests to determine if the Acceptance Criterion has been achieved. On or prior
to the expiration of this acceptance period, Arbitron shall provide to SRI a
written notice of either, (1) Arbitron’s acceptance, or (2) notice of
non-achievement of Acceptance Criterion and Arbitron’s rejection of same.
Payment by Arbitron to SRI shall not relieve SRI of any of its obligations and
responsibilities under this Agreement and/or applicable Schedule.

SRI shall supply the appropriate personnel to investigate the reported
deficiencies found by Arbitron during the acceptance period. Deficiencies
found to be of SRI’s causing will be corrected by SRI at its own expense. Such
correcting activities will commence immediately and be completed as quickly as
is reasonably possible. If corrections are required, upon receipt of SRI’s
notice that the deficiencies have been remedied, Arbitron shall again have an
acceptance period of thirty (30) working days, unless otherwise specified or
agreed to in writing.

8. Insurance and Liability: SRI shall secure and maintain workers’
compensation, disability benefits, unemployment insurance and the like, in
accordance with the law of the state or states wherein SRI shall perform
services for Arbitron. Personnel supplied by SRI are not Arbitron employees or
agents and SRI assumes full responsibility for their acts. Such personnel used
or supplied by SRI shall be informed that they are not entitled to the
provisions of any Arbitron employee benefits. With respect to such personnel,
SRI shall have sole responsibility for supervision, daily direction and
control. Arbitron will not be responsible for workers’ compensation,
disability benefits, unemployment insurance and withholding income taxes and
social security for said personnel.

SRI assumes full and complete liability for all injuries to, or death of, any
person including SRI’s employees, agent or subcontractors, and for damages to
property, including property and service of Arbitron, caused by the presence of
SRI’s employees, agent or subcontractors on Arbitron premises in connection
with the services furnished under this Agreement whether caused by negligence
or otherwise except to the extent caused by the negligence of Arbitron. SRI
shall defend, indemnify and save Arbitron harmless from all claims, losses,
expenses, including reasonable attorneys’ fees, or suits for such injuries,
death or damages whether or not such claims are valid to the extent such
injuries, death or damages are attributable to SRI. Arbitron

4

assumes full and complete liability for all injuries to, or death of, any
person including Arbitron’s employees, agent or subcontractors, and for damages
to property, including property and service of SRI, caused by the presence of
Arbitron’s employees, agent or subcontractors on SRI premises in connection
with the services furnished under this Agreement whether caused by negligence
or otherwise except to the extent caused by the negligence of SRI. Arbitron
shall defend, indemnify and save SRI harmless from all claims, losses,
expenses, including reasonable attorneys’ fees, or suits for such injuries,
death or damages whether or not such claims are valid to the extent such
injuries, death or damages are attributable to Arbitron.

9. Termination and Cancellation: This Agreement shall commence as of the date
first hereinabove stated, and shall be in effect until April 1, 2002 unless
extended by mutual written agreement of both parties hereto, except for the
payment provisions hereof which, by their terms, shall be in effect until the
twelve (12) monthly payments have been made in accordance with this Agreement
and Schedule A hereto.

In the event of any material breach of this Agreement by SRI which remains
uncured after thirty (30) days written notice setting forth in reasonable
detail the nature of such breach, Arbitron may immediately cancel this
Agreement, by giving written notice thereof.

In the event that Arbitron has not paid amounts due, which are not in dispute,
within thirty (30) days of receipt of written notice of the past due amount,
SRI shall have the right to terminate this Agreement.

In the event of cancellation or expiration of this Agreement (other than upon
default for non-payment by Arbitron that is not later cured either through
written agreement of the parties hereto or through satisfaction by Arbitron of
a judgment against it to make such payments), all Arbitron property and all
work in SRI’s possession shall be forwarded to Arbitron.

10. Limitation of Liability: EXCEPT FOR DAMAGES INCURRED OR THAT MAY BE
INCURRED BY ARBITRON AS A RESULT OF ANY INFRINGEMENT KNOWN BY SRI ON OR PRIOR
TO THE DATE ON WHICH ARBITRON ACCEPTS THE SOFTWARE IN ACCORDANCE WITH CLAUSE
(1) OF SECTION 7 OF THIS AGREEMENT OR, IF NO SUCH ACCEPTANCE IS MADE, THE DATE
OF TERMINATION OF THIS AGREEMENT OR ANY EXTENSION HERETO, OR CLAIM OF
INFRINGEMENT KNOWN BY SRI ON OR PRIOR TO THE DATE ON WHICH ARBITRON ACCEPTS THE
SOFTWARE IN ACCORDANCE WITH CLAUSE (1) OF SECTION 7 OF THIS AGREEMENT OR, IF NO
SUCH ACCEPTANCE IS MADE, THE DATE OF TERMINATION OF THIS AGREEMENT OR ANY
EXTENSION HERETO, OF ANY PATENT, TRADEMARK, COPYRIGHT OR OTHER PROPRIETARY
RIGHT OF ANY THIRD PARTY BASED ON THE SOFTWARE AND/OR SERVICES PROVIDED UNDER
THIS AGREEMENT TO ARBITRON, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE
OTHER PARTY FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, WHETHER
BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY, OR
OTHERWISE, AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGE. The parties have agreed that the limitations specified in this
Section 10 will survive and apply even if any limited remedy specified in this
Agreement is found to have failed of its essential purpose.

Except as specifically set forth in this Agreement and Schedule A hereto, SRI
shall have no responsibilities or obligations under this Agreement with respect
to the Software or the Services. Notwithstanding anything in this Agreement to
the contrary, Arbitron acknowledges and agrees that its sole and exclusive
remedy with respect to any and all claims, losses, damages or expenses
(“Losses”) in connection with this Agreement shall be pursuant to the
indemnification provisions set forth in this Agreement: provided, however, that
this shall not limit or prohibit the right of any party to seek specific
enforcement, injunctive relief or other equitable remedies for any breach of
this Agreement. SRI shall have no obligation to indemnify Arbitron against any

5

Losses, unless written notice thereof is delivered to SRI prior to July 1, 2004
(or prior to July 1, 2006 in the case of Losses relating to a breach of Section
12 hereof).

11. Compliance with Laws: SRI shall comply with all applicable federal and
state laws and regulations relating in any way to its performance under this
Agreement.

SRI shall defend, indemnify, and hold Arbitron harmless from and against any
and all damages and expenses, including legal fees, incurred directly or
indirectly as a consequence of SRI’s failure to comply with any such laws or
regulations.

12. Conflict of Interest: SRI agrees that it will not, while performing under
this Agreement and within five (5) years after the date of this Agreement,
directly or indirectly perform any development of software data processing
systems or reporting systems for syndicated local radio ratings or syndicated
national network radio ratings. Arbitron agrees to evaluate any breach of the
foregoing sentence and notify SRI within a reasonable amount of time following
Arbitron’s becoming aware of such breach of any decision Arbitron reaches with
regard thereto, which, if not remedied to the satisfaction of Arbitron within
thirty (30) days of such notice, may include but shall be in no manner limited
to the termination of this Agreement without penalty to Arbitron.
Notwithstanding the preceding provisions of this Section 11, SRI shall be
permitted to conduct any activities that are not restricted by the non-compete
provisions of Section 7.5 of the Asset Purchase Agreement dated July 2, 2001
to which Arbitron and SRI are parties, including without limitation the
Permitted Activities (as defined in the Asset Purchase Agreement).

13. Applicable Law: This Agreement shall be deemed to be a contract made under
the laws of the State of New York and for all purposes it, plus any related or
supplemental documents and notices, shall be construed in accordance with and
governed by the laws of the State of New York exclusive of its choice of law
rules. The parties expressly agree that any and all disputes arising out of or
concerning this Agreement shall be litigated and adjudicated in the state
and/or federal courts located in the State of New York, and each party consents
to and submits to such jurisdiction.

14. Assignment and Delegation:

		
	 	(a) By SRI: SRI may not sell, transfer, assign or otherwise convey any of
its rights or obligations under this Agreement to any other person
without the express prior written consent of Arbitron. Any such
assignment without such consent shall be null and void.

		
	 	(b) By Arbitron: Arbitron may not sell, transfer, assign or otherwise
convey any of its rights or obligations under this Agreement to any other
person without the express prior written consent of SRI. Any such
assignment without such consent shall be null and void. Notwithstanding
the foregoing, Arbitron may assign its rights hereunder without the
consent of SRI to any division or wholly owned subsidiary of Arbitron or
to an entity which acquires all or substantially all of Arbitron’s assets
or business; provided that (i) Arbitron shall remain liable hereunder,
(ii) Arbitron shall promptly notify SRI in writing of such assignment
and (iii) the Assignee shall agree in writing to be bound by the
provisions of this Agreement.

15. Sub-Contractors: SRI will not engage or make use of subcontractors for the
purpose of providing services to Arbitron except as authorized in writing by
Arbitron.

16. Surviving Sections: All sections of this Agreement regarding
representations, warranties, covenants, confidentiality obligations, conflict
of interest, proprietary rights, non-solicitation and indemnities by SRI shall
survive expiration or termination of this Agreement or any Schedule hereunder,
provided, however, that no claim may be asserted after the earlier to occur of
(i) the date which is sixty (60) days following the expiration of the
applicable statute of limitation, or (ii) three (3) years following the date of
this Agreement. Notwithstanding anything in

6

this Agreement to the contrary, claims relating to a breach by SRI of Section
12 of this Agreement may be asserted until sixty (60) days following the day
that is five (5) years following the date of this Agreement.

17. Notices: All notices to either party shall be in writing and shall be
directed to the address stated below (unless notice of an address change is
given). Any notices or other communications so addressed shall be deemed duly
served if delivered in person or sent by certified mail or facsimile, confirmed
by certified mail, return receipt requested.

	 	 	 
	If to Arbitron:		
ARBITRON INC.

9705 Patuxent Woods Drive 

Columbia, Maryland 21046  

Attention: Dolores L. Cody, Executive Vice President

                    & Chief Legal Officer
	
	
	
	

	 	

	If to SRI:		
STATISTICAL RESEARCH INC.

11 Prospect Street              

Westfield, New Jersey 07090     

Attention: Gale D. Metzger
	
	
	
	

	 	

	with a copy to:		
Chadbourne & Parke LLP

30 Rockefeller Plaza                    

New York, NY 10112                      

Attention: Morton E. Grosz
	
	
	
	

	 	

			
and

Gale D. Metzger and Gerald Glasser at the

addresses furnished to Arbitron by such parties

18. No Waiver: No failure on the part of either party to exercise, and no
delay in exercising, any right or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right or remedy
hereunder preclude any other or further exercise thereof or the exercise of any
other right or remedy granted hereby or by any related document or by law.

19. Entire Agreement: This Agreement, including any Schedules hereto and
made a part hereof, constitutes and expresses the entire agreement and
understanding between the parties, on the subject matter herein. All previous
discussions, promises, representations and understandings between the parties
relative to this Agreement, if any, have been merged into this document.

20. Independent Contractors: The relationship of the parties is that of
independent contractors. Nothing in the Agreement shall be construed to mean
that the parties are members of any partnership, joint venture, association,
syndicate or other entity or to confer on either party any express, implied or
apparent authority to incur any obligation or liability on behalf of the other
party.

21. Severability: In the event that any term or provision of this Agreement
is determined to be unlawful or unenforceable, such term or provision shall be
deemed severed from this Agreement and all remaining terms and provisions of
this Agreement shall remain in full force and effect.

22. Disclosure: Both parties acknowledge and agree that it may be necessary
for one party to disclose the fact of the SRI’s retention, the duties
performed and the compensation paid, should there be proper inquiry from such a
source as an authorized U.S. or state government agency or should either
party believe it has a legal obligation to disclose such information and each
party hereby authorizes any such disclosures.

7

23. Publicity: Other than to promote the deliverable to RADAR clients and to
potential RADAR clients, SRI shall not advertise, market or otherwise make
known to others any information relating to the work performed under this
Agreement, including mentioning or implying the name of Arbitron Inc. or its
subsidiaries. The obligations under this Section shall survive expiration or
termination of this Agreement.

24. Non-Solicitation. During the Term of this Agreement, and any Schedule, and
for a period of two (2) year(s) following the termination of this Agreement, or
any Schedule, neither party shall, directly or indirectly, solicit, employ or
otherwise engage the other party’s employees. Employee shall include anyone
who was an employee of a party within six (6) months prior to the
non-solicitation period.

25. Amendments: This Agreement may not be and shall not be deemed or
construed to have been modified, amended, rescinded, canceled or waived in
whole or in part, except by written instrument signed by the parties hereto.

26. Force Majeure: Neither party shall be liable to the other party for any
delay in performance or nonperformance of any provision of this Agreement
resulting from state or governmental action; riots, war, acts of terrorism,
sabotage, strikes, lock-outs, prolonged shortage of energy, fire, flood,
hurricane, earthquakes, lightning, and explosion, provided that each party
shall promptly notify the other party of the occurrence of such event and shall
estimate the probable delay resulting therefrom.

27. Headings: The headings in this Agreement are inserted for convenience and
identification only and are not intended to describe, interpret, define, or
limit the scope, extent, or intent of this Agreement or any other provision
hereof.

28. Authority to Execute: Each party represents and warrants that it has the
legal power and authority to enter into this Agreement and that it has not made
and will not make any commitments to the other inconsistent with such rights.

29. Knowledge of SRI: For purposes of this Agreement, the “knowledge” of or
matters “known to” SRI are defined to mean actual knowledge of any of the
directors or officers or members of management of the Seller.

8

[SIGNATURE PAGE TO SOFTWARE DEVELOPMENT AGREEMENT]

	 	 	 
	STATISTICAL RESEARCH INC.		ARBITRON INC.
	 		 
	By: /s/ Gerald J. Glasser		
By: /s/ Stephen B. Morris
	
		

	Gerald J. Glasser		
Stephen B. Morris
	
		

	(print or type above signature)		
(print or type above signature)
	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	
	
	
	
	

	Title: Secretary/Treasurer		
Title: President/CEO
	
		

	Date: 7/2/01		
Date: 7/2/01
	
		

9

Schedule “A”

Statement of Work to the

Software Development and Consulting Agreement

      (1) Objectives: The work covered by this agreement will consist of two
parts, as follows:

		
	 	      (a) SRI consultants designing, overseeing and, in conjunction
with the Arbitron RADAR Group, changing all existing RADAR
software systems so that Arbitron diary data will be able to be
used in place of telephone interview data for a RADAR national
audience measurement service; and

		
	 	      (b) SRI consultants fully cooperating in the orientation and
training of Arbitron personnel with respect to the workings and
details of the software systems; it is understood that the aim is
for Arbitron to maintain and to modify, when appropriate, all
RADAR software systems under the control of its own employees.

      (2) SRI will serve as consultants to Arbitron to achieve the objectives
stated in the paragraph (1). SRI’s work will consist of software system
design and development , advisory opinions, actual coding of software and
documentation of RADAR data processing software system and the PC RADAR 2010
reporting software system. SRI will work cooperatively with Arbitron
personnel to complete the project successfully.

      (3) Conversion of existing RADAR software to a diary base necessarily
covers two main systems: the RADAR data processing software system which
processes and stores data and then builds files for reporting purposes, and the
PC RADAR 2010 reporting software system. SRI will be responsible for systems
redesign in both and then overseeing the implementation of changes in these
systems. Implementation will involve changing code, testing changes and
documenting the changes; that is, modifying and updating the RADAR
documentation for both software systems,

      (4) The criterion Arbitron will use for judging the successful completion
of the conversion part of both software systems is as follows: can any report
or screen display that is currently available from the present PC RADAR 2010
reporting software system be produced in essentially the same way and in the
same format with the new diary-based software system? SRI will have the
responsibility to remedy any gaps or errors in the capability of both systems.

      The word “essentially” is used in the preceding paragraph rather than
“exactly” because the diary data do not include some information that is
currently reported by RADAR (e.g., audiences by race). Such variations might
be changed in subsequent versions of the software systems. “Essentially” also
covers the fact that because a larger sample size is contemplated, some
software that accesses respondent-by-respondent data may run longer than it
does currently; SRI will develop the new software systems so that any increase
in run time will be approximately proportional to the increase in sample size,
as compared to the run time of a 12,000 annual sample size, so long as every
other aspect of the respective files to be tested on run times are identical.
Further, there will be no options within the PC 2010 reporting software system
that link or otherwise compare telephone-based data with diary-

based data.
Comparisons can be made be using the old and new software systems
independently.

      (5) SRI, as consultants, will make every effort to deliver by
November 2001 software systems that produce the full range of
audience estimates by network, including the SCAN program, completed
as soon as is possible. Arbitron understands that its cooperation in
providing diary data and related information on a timely basis is a
prerequisite for the project to achieve completion. From SRI’s
perspective, an earlier date is possible if Arbitron can operate on
an expedited schedule.

      (6) Within twenty (20) days of execution of the Software
Development Agreement, Arbitron and SRI will develop a project plan,
including delivery milestones, due dates of deliverables from
Arbitron, due dates of software and test schedules for data and
software systems. This plan will be expanded, or otherwise modified,
at the weekly status meetings specified in (11).

      (7) The parties agree that the basic plan for the software systems is to
have a flow of diary data from Arbitron Columbia to Arbitron RADAR in New
Jersey on an ongoing basis; that is, Arbitron’s RADAR Service will be
incorporated in the ongoing Arbitron production schedule. Data bases to store
these data must be developed. SRI will design, oversee and in conjunction
with the Arbitron RADAR Group in New Jersey, implement the development of these
data bases.

      (8) Under the plan, every three months a sample will be drawn by the
Arbitron RADAR Group in New Jersey utilizing an efficient sampling scheme, to
be designed and developed by SRI. These samples will be used as input into the
RADAR data processing software system. SRI will be responsible for the design
and for the development of software to implement this sampling. All aspects of
the sampling plan, and its implementation, are subject to review and approval
by Arbitron.

      (9) An objective in the conversion to diaries is to place minimum demands
on non-RADAR Arbitron IT/Operations personnel. Aside from the preparation and
transmission of data described in (10), the burden of work will be assumed by
the Arbitron RADAR Group in New Jersey and/or SRI consultants.

      (10) Arbitron Columbia will be responsible for some tasks that involve
preparing and transmitting data to the Arbitron RADAR Group in New Jersey in a
mutually-agreed format and on a mutually-agreed schedule. Within twenty (20)
days of execution of the Software Development Agreement, careful documentation
of conventions used in preparing these data will be specified and agreed upon
by Arbitron and SRI.

      (11) In connection with all aspects of this software agreement, there will
be weekly status meetings, at a fixed time in Westfield. These will be
attended by a senior Arbitron person (e.g., David Lapovsky or Claire Kummer or
Lee Youngblood ) in person or by telephone, by members of the Arbitron RADAR
Group (usually Michael Klein and Marlene Gilmore) as well as by SRI (Gerald
Glasser).

      (12) The purpose of the meetings are to review progress against the
schedule referenced above and to deal with problems any member of the group has
encountered. In addition, new tasks may be specified during the meetings. A
task will be a well-defined activity, with assigned responsibility, together
with a realistic schedule under which the task can be accomplished. Both
parties recognize that the project

is a joint effort and to be successful, the
efforts of all involved must be brought to bear on the necessary tasks.

      One attendee at the weekly meeting shall be appointed to record elements
of the discussion at the weekly status meetings. These “minutes” will be
distributed to all attendees for review, and if and when corrected, will serve
as a continuing status report on the project.

      (13) Any RADAR software that is revised or modified by SRI consultants in
conjunction with this agreement, particularly RADAR PC 2010 reporting software
system, will be transferred to the Arbitron RADAR Group in New Jersey on a
continuous basis.

      (14) The RADAR data processing software system has by necessity
incorporated various system limits into its design. While it may be desirable
to change some of these limits for future marketing or other considerations,
this will not be done during the course of conversion to a dairy-basis and such
changes are not covered by this software agreement. Subsequently, Arbitron
will have the responsibility for making these changes, if they decide they are
warranted.

      (15) The RADAR data processing software system work will be done in such
a way that there will be no mechanical limitation on sample size. While the
initial target will be to sample 12,000 diaries a quarter, or 48,000 per year,
the system will be designed to easily accommodate change in that number, up or
down.

      (16) At the same time that conversion of the RADAR data processing
software system to the diary is proceeding, SRI will also provide support for
minor or small changes required in RADAR data processing software system
because of network product changes or other requests that Arbitron deems
important (i.e., those that are not global changes throughout the system). If
need for a major change is desirable, then SRI can be retained for an
additional fee to make such change, or the change can be deferred until
Arbitron assumes full responsibility for maintaining the system.

      (17) If Arbitron decides, at some point, that they wish to base the RADAR
report delivered to RADAR clients on independent samples every quarter rather
than the present moving average concept, the RADAR data processing software
system should be changed to accommodate that new concept. As both systems
are designed, it is not feasible to have them accommodate both kinds of
reporting simultaneously. If this change is decided upon during the term of
this software agreement, SRI will help implement that change at no additional
cost to Arbitron. The change, which can be done in a couple of different ways,
will be easy to accomplish.

      (18) Both parties to this agreement recognize that the current state of
computer hardware imposes limitations on the size of the sample that can be
used with the RADAR system. Run time of client (reporting) software and of
internal RADAR data processing is often proportional to the size of the
respondent data base. Increasing the sample size from 12,000 to 48,000, as is
initially contemplated, will increase run time of such programs 4-fold.
Additional increases will result in proportional increases in run time.

      (19) If Arbitron decides to experiment with or demonstrate alternate
sampling schemes; that is, larger samples and/or independent samples, Arbitron
will have the software capability to do so. Both

software systems will be
designed to accommodate the option of processing larger samples.

      (20) In addition to generating test runs to compare diary-based estimates
with telephone-based estimates, once the new software systems have been
created, Arbitron will assume the responsibility for testing the reporting
software in accord with paragraph (4). If any errors or gaps are found and
reported to SRI, SRI has the responsibility to repair them. This testing
period shall be either two months or until the end of this service agreement,
whichever is longer.

      (21) With respect to transfer of knowledge, the RADAR data processing
system software needs to be distinguished from RADAR reporting PC 2010
software. Knowledge regarding data processing software systems will be
transferred on an ongoing basis from the start of the project. This is, by
necessity, because Arbitron RADAR personnel will be intimately involved in the
conversion of such software and the development of new software to support
operations (e.g., the sampling subsystem).

      (22) SRI consultants will assume the responsibility for converting the
RADAR PC 2010 software with the assistance of the Arbitron RADAR Group. The
Arbitron RADAR Group in New Jersey (Marlene Gilmore, Bob McGowan and anyone
else Arbitron designates) will be kept fully informed as to changes and equally
important, fully informed as to what is not being changed. This provides a
good knowledge base for these employees for future maintenance of the system.

      (23) If Arbitron wishes one or more of its employees to have further
training or orientation on either RADAR software system during the course of
this agreement, SRI will cooperate with such requests. These employees should
have already used (applied) the software extensively so that they are
reasonably familiar with its functionality. Further training would involve,
first of all, reviewing the source code for programs and all documentation.
Second, SRI will meet with the employee or employees and provide an orientation
as to the technical workings of the program. If, after this training, the
employee or employees have further questions they should be submitted to SRI in
writing, and responses will be given in writing or orally.

      (24) The delivery of both software systems will be completed
before the end of this agreement. Once this software agreement is
concluded, irrespective of any supplemental agreement, SRI will have
no further responsibility for maintaining or modifying the system,
though it will make itself available, on a reasonable basis, for
general questions that Arbitron employees may have. Such questions
should relate to the system as it was turned over to Arbitron;
questions relating to expansion or modification of the system are
covered by any supplemental services agreement specified in (30).

      (25) If any changes are made by Arbitron to a particular RADAR program,
any SRI warranties about the accuracy or reliability of the revised program are
no longer in effect. The warranties will still apply to the original version
of the program if it can be demonstrated that a problem exists with that
version. Warranties on any other software package are not affected unless that
package itself is, or inputs to that package are, changed by Arbitron.

      (26) SRI resources in fulfilling this service agreement will include
Gerald Glasser, with support staff as is necessary. This work will be Dr.
Glasser’s primary, though not exclusive, work commitment during the term of
this agreement.

      (27) Work done by SRI as consultants will be in Westfield, New
Jersey. Special arrangements, including payment of travel expenses,
may be made for an occasional meeting off-premises.

      (28) Arbitron will provide access to the servers used for RADAR
in New Jersey for computers used by Dr. Glasser and by two or three
persons, that he will specifically designate, who will work with him
under this agreement.

      (29) Subject to the payment provisions of Paragraph (30) below,
the term of this software agreement is for nine months, beginning
July 2, 2001 and ending April 1, 2002.

      (30) The fee for these software development services is
$900,000. This amount will be paid monthly in advance on or before
the first (1st) day of each month in 12 equal monthly installments of
$75,000 beginning July 2, 2001 and ending June 1, 2002.

      (31) SRI will make Dr. Glasser available on a consulting basis
beyond the term of this agreement, for 2 half-days per month for a
retainer of $4,000 per month, payable in full in advance on or before
the first (1st) day of each month. This supplemental agreement would
begin April 2, 2002. The work in each half-day might cover a 3-hour
internal meeting plus 1 to 3 hours of preparation time to discuss a
facet of the RADAR systems, including possible expansion or
modification of the software systems. SRI will fulfill this
supplemental consulting agreement for a minimum period of 6 months,
after which time it may cancel it with 30 days notice. Arbitron may
cancel it at any time with 30 days notice.

      Any work beyond the 2 half-days of consulting per month will be
subject to Arbitron and SRI developing an additional agreement,
details of which will be negotiated at that time.

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