Document:

EX-10.1

	 
	CEO DEFERRAL ELECTION FORM FOR RESTRICTED STOCK

	 

	 

	 	 	 
	_Stephen B. Morris

	 	      —       —      
	 

	 	

	Print Name

	 	Social Security Number

Residence Address

Please complete and return the form to:

[Attn: ]

Arbitron, Inc.

142 West 57th Street

New York, NY 10019-3300

ELECTION TO DEFER

My election relates to each separate 12,125 common stock share tranche awarded to me under the
Arbitron Inc. 1999 Stock Incentive Plan (the “Plan”) as restricted stock pursuant to the
Restricted Stock Agreement (the “Agreement”) between Arbitron Inc. (the
“Corporation”) and me, effective March 1, 2006, that is scheduled to vest on each of
December 31, 2007, December 31, 2008 and December 31, 2009 (the “Restricted Stock”). The
Restricted Stock I elect to defer, upon vesting, will be converted into deferred stock units, and
any such deferred stock units will be documented pursuant to a Deferred Stock Unit Agreement
between the Corporation and me (the “Agreement”). This election does not relate to the 12,125
shares of restricted stock awarded to me pursuant to the Agreement that are scheduled to vest on
December 31, 2006.

	 	 	 
	Amount and Timing of Deferral

	 
	 	 
	     

X

	 	N/A. I will not defer payment of my Restricted Stock; OR

I elect to defer payment of 50% of my Restricted Stock (rounded down to the next whole share), as such

shares become vested, so as to convert the vesting shares so deferred into “Deferred Stock Units.” I

also elect to have any such Deferred Stock Units paid to me on the first day of the seventh

(7th) month following my termination of employment for any reason other than death, at which

point payment shall be made to me as a lump sum in common stock of the Corporation (“Stock”). I

understand that my deferral election will become irrevocable after March 31, 2006. I also understand the

following: (i) that my Restricted Stock award shall be reduced by the number of shares converted to

Deferred Stock Units if and when Deferred Stock Units are credited to me under the first sentence of

Section 1 of the Agreement, and (ii) that in the event of my termination of employment due to death, the

full amount of my Deferred Stock Unit account will be paid to my designated beneficiary(ies) as provided

on the attached beneficiary designation form, as may be updated by me from time to time.

Important: Any election to defer my Restricted Stock must be on file with the Corporation no
later than the close of business on March 31, 2006.

	 	 	 
	SIGNATURE & ACKNOWLEDGEMENT

	 	

	 
	 	 
	I hereby make the elections designated in this form. I also acknowledge and agree to the following:

	 	•	 	I understand that my deferral election is irrevocable as of March 31, 2006.

	 	•	 	I understand that amounts I choose to defer are subject to the claims of the creditors of the
Corporation in the event of bankruptcy or insolvency.

	 	•	 	While deferred, my account shall be treated as invested in the Corporation’s Stock adjusted to reflect
increases and decreases in the Corporation’s Stock, and credited with dividend equivalents on the phantom
shares credited to the account.

	 	•	 	FICA taxes shall be withheld from the other compensation due to me to reflect the amount of FICA taxes
due on the amounts I have elected to defer.
	 
	 	 	 	Signature: /s/ Stephen B. Morris            Date: March 31, 2006

Corporation Use:

Rec’d: 3/31/06

By: /s/ Kathleen T. RossEX-10.2

CEO DEFERRED STOCK UNIT AGREEMENT

THIS AGREEMENT is entered into and effective as of March 31, 2006 (the “Effective Date”), by
and between Arbitron Inc. (the “Company”) and Stephen B. Morris (the “Executive”).

A. The Company has adopted the Arbitron Inc. 1999 Stock Incentive Plan (as may be amended or
supplemented, the “Plan”) authorizing the Board of Directors of the Company, or a committee as
provided for in the Plan (the Board or such a committee to be referred to as the “Committee”), to
permit grantees to elect to defer Restricted Stock so as to convert such Restricted Stock into
deferred stock units.

B. Pursuant to the Plan and the Executive’s deferral election covering his March 1, 2006
Restricted Stock award (the “2006 Restricted Stock Award”), and subject to the terms and conditions
set forth in this Agreement, the Company hereby documents the conversion of the 2006 Restricted
Stock Award into awards to the Executive of stock units representing shares of the Company’s common
stock, and payable following termination of the Executive’s employment as further described herein.

Accordingly, the parties agree as follows:

	1.	 	Deferred Stock Units.

On each of December 31, 2007, December 31, 2008 and December 31, 2009 (each a “Crediting
Date”), provided the Executive remains an employee of the Company or a Subsidiary on such date, the
Company hereby awards the Executive 6,062 stock units representing the same number of shares of the
Company’s common stock, $0.50 par value (the “Deferred Stock Units”), according to the terms and
subject to the conditions hereinafter set forth and as set forth in the Plan. Accordingly, no
Deferred Stock Units shall be treated as credited to the Executive under this Agreement until
December 31, 2007 and Deferred Stock Units may increase in accordance with execution of the
provisions of the preceding sentence, up to a maximum of 18,186 shares. The number of shares
credited under this Agreement as Deferred Stock Units shall reduce one-for-one the number of shares
of the Company’s common stock treated as vesting under the 2006 Restricted Stock Award, and the
shares thus eliminated from the 2006 Restricted Stock Award shall cease to be treated as issued and
outstanding to the Executive.

Once credited, the number of Deferred Stock Units subject to this Agreement may increase based
on Dividend Equivalent credits made pursuant to Section 3. Any such additional Deferred Stock
Units (or fraction thereof) resulting from Dividend Equivalent credits shall be treated as Deferred
Stock Units and shall be subject to the terms and conditions of this Agreement and the Plan.

Payment of the Deferred Stock Units shall be made as described below in Section 2 and Section
5.

	2.	 	Vesting and Payment of Deferred Stock Units.

2.1 Vesting. The Deferred Stock Units credited to the Executive under this Agreement
shall be fully vested.

2.2 Termination of Service. Payment of the Deferred Stock Units credited to the
Executive under this Agreement shall not be made until following the Executive’s termination of
employment with the Company and all Subsidiaries. If the Executive’s employment with the Company
and all Subsidiaries ceases for any reason other than death, payment shall be made on the first day
of the seventh (7th) month following the Executive’s termination of employment, as a
lump sum in common stock of the Company with any fractional shares to be distributed in cash. In
the event the Executive terminates employment with the Company and all Subsidiaries on account of
death or if the Executive dies prior to payment under the preceding sentence, payment shall be made
as soon as reasonably practicable following the Executive’s death in accordance with the
beneficiary designation form attached to the Executive’s deferred stock unit election related to
his 2006 Restricted Stock Award, as such beneficiary designation may be updated from time to time,
and subject to the provisions of the Plan.

	3.	 	Rights and Restrictions of Executive; Transferability.

3.1 Rights as a Stockholder. With respect to Deferred Stock Units credited under this
Agreement, the Executive shall have no rights as a stockholder unless and until the Executive has
become the holder of record of shares of Common Stock following payment in Common Stock after
terminating employment with the Company and all Subsidiaries. Notwithstanding the preceding, the
Executive shall be credited with Dividend Equivalents on Deferred Stock Units credited for his or
her benefit to the extent of dividends issued on Common Stock, provided the record date for such
dividend is on or after the Crediting Date applicable to such Deferred Stock Units.

3.2 Restrictions on Transfer. Except pursuant to testamentary will or the laws of
descent and distribution or as otherwise expressly permitted by the Plan, no right or interest of
the Executive to payment of the Deferred Stock Units may be assigned or transferred, or subjected
to any lien, during the lifetime of the Executive, either voluntarily or involuntarily, directly or
indirectly, by operation of law or otherwise. As previously described in Section 2.2, the
Executive will, however, be entitled to designate a beneficiary to receive the payment of the
Deferred Stock Units credited to the Executive under this Agreement after such Executive’s death in
the manner provided by the Plan.

	4.	 	Securities Law and Other Restrictions.

Notwithstanding any other provision of the Plan or this Agreement, the Company will not be
required to issue, and the Executive may not sell, assign, transfer or otherwise dispose of, any
shares of Common Stock received as payment of the Deferred Stock Units, unless (a) there is in
effect with respect to the shares of Common Stock received as payment of the Deferred Stock Units a
registration statement under the Securities Act of 1933, as amended, and any applicable state or
foreign securities laws or an exemption from such registration, and (b) there has been obtained any
other consent, approval or permit from any other regulatory body which the Committee, in its sole
discretion, deems necessary or advisable. The Company may condition such issuance, sale or
transfer upon the receipt of any representations or agreements from the parties involved, and the
placement of any legends on certificates representing Common Stock received as payment of the
Deferred Stock Units, as may be deemed necessary or advisable by the Company in order to comply
with such securities law or other restrictions.

	5.	 	Change of Control.

If there is a Change of Control, then upon consummation of the Change of Control, but in no
event more than 15 days following the Change of Control, the Company shall provide the Executive a
cash payment equal to the value per share of the consideration received in the Change of Control
multiplied by the number of Deferred Stock Units then credited to the Executive under this
Agreement. Upon payment of the cash amount just described, notwithstanding anything to the
contrary in this Agreement or the Plan, this Agreement shall expire, and no further payment shall
be due to the Executive in respect of the Deferred Stock Units.

	6.	 	Adjustments.

In the event of any reorganization, merger, consolidation, recapitalization, liquidation,
reclassification, stock dividend, stock split, combination of shares, rights offering, divestiture
or extraordinary dividend (including a spin-off), or any other change in the corporate structure or
shares of the Company that does not result in a Change of Control, the Committee (or, if the
Company is not the surviving corporation in any such transaction, the board of directors of the
surviving corporation), in order to prevent dilution or enlargement of the rights of the Executive,
will make appropriate adjustment (which determination will be conclusive) as to the number and kind
of securities represented by the stock units making up the Deferred Stock Units then credited to
the Executive under this Agreement.

	7.	 	Certain Definitions. For purposes of this Agreement, the following additional
definitions will apply:

(a) “Change of Control” means any of the following events:

	 	(i)	 	a merger or consolidation to which the Company is a party if
the individuals and entities who were stockholders of the Company immediately
prior to the effective date of such merger or consolidation have beneficial
ownership (as defined in Rule 13d-3 under the Exchange Act) of less than 50% of
the total combined voting power for election of directors of the surviving
Company immediately following the effective date of such merger or
consolidation;

	 	(ii)	 	the direct or indirect beneficial ownership (as defined in
Rule 13d-3 under the Exchange Act) in the aggregate of securities of the
Company representing 51% or more of the total combined voting power of the
Company’s then issued and outstanding securities by any person or entity, or
group of associated persons or entities acting in concert; provided, however,
that for purposes hereof, any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation
controlled by the Company shall not constitute a Change of Control;

	 	(iii)	 	the direct or indirect beneficial ownership (as defined in
Rule 13d-3 under the Exchange Act) in the aggregate of securities of the
Company representing 25% or more of the total combined voting power of the
Company’s then issued and outstanding securities by any person or entity, or
group of associated persons or entities acting in concert if such acquisition
is not approved by the Board of Directors of the Company prior to any such
acquisition; provided, however, that for purposes hereof, any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company shall not constitute a
Change of Control;

	 	(iv)	 	the sale of the properties and assets of the Company,
substantially as an entirety, to any person or entity which is not a
wholly-owned subsidiary of the Company;

	 	(v)	 	the stockholders of the Company approve any plan or proposal
for the liquidation of the Company; or

	 	(vi)	 	a change in the composition of the Board at any time during any
consecutive 24 month period such that the “Continuity Directors” cease for any
reason to constitute at least a 70% majority of the Board. For purposes of
this clause, “Continuity Directors” means those members of the Board who either
(A) were directors at the beginning of such consecutive 24 month period, or
(B) were elected by, or on the nomination or recommendation of, at least a
two-thirds majority of the then-existing Board of Directors.

	 	(b)	 	“Dividend Equivalent” means a credit to the account of an Executive, based on
the number of Deferred Stock Units then credited to the Executive under this Agreement,
equivalent to the cash, stock or other property dividends on shares of Common Stock.
Dividend Equivalent credits shall be deemed reinvested in additional shares of Deferred
Stock Units (or fractions thereof) by dividing the dollar amount of the Dividend
Equivalent credit by the Fair Market Value of a share of the Company’s common stock on
the payment date of the dividend. The resulting number of Common Stock equivalents
shall be added to the number of Deferred Stock Units subject to this Agreement.

Capitalized terms not defined in this Agreement shall have the meanings set forth in the Plan.

	8.	 	Subject to Plan.

The Deferred Stock Units issued under this Agreement shall be subject to the terms of the
Plan. The terms of the Plan are incorporated by reference in this Agreement in their entirety, and
the Executive, by execution of this Agreement, acknowledges having received a copy of the Plan.
The provisions of this Agreement will be interpreted to be consistent with the Plan, and any
ambiguities in this Agreement will be interpreted by reference to the Plan. Except as set forth in
Sections 5 and 7, in the event that any provision of this Agreement is inconsistent with the terms
of the Plan, the terms of the Plan will prevail.

	9.	 	Miscellaneous.

9.1 Employee as Unsecured Creditor. This Agreement shall create a contractual
obligation on the part of Company to make payment of the Deferred Stock Units credited to the
account of the Executive at the time provided for hereinabove. Neither the Executive nor any other
party claiming an interest in deferred compensation hereunder shall have any interest whatsoever in
any specific assets of the Company. The Executive’s right to receive payments hereunder shall be
that of an unsecured general creditor of Company.

9.2 Payment Rights Nontransferable. The rights and interests of the Executive and any
beneficiary of the Executive under this Agreement may not be sold, pledged, hypothecated, assigned
or transferred in any manner, either voluntarily or involuntarily by operation of law, other than
by the Executive pursuant to a beneficiary designation.

9.3 Binding Effect. This Agreement will be binding upon the heirs, executors,
administrators and successors of the parties to this Agreement.

9.4 Governing Law. This Agreement and all rights and obligations under this Agreement
will be construed in accordance with the Plan and governed by the laws of the State of Delaware,
without regard to conflicts or choice of law rules or principles that might otherwise refer
construction or interpretation of this Agreement to the substantive laws of another jurisdiction.

9.5 Entire Agreement. This Agreement and the Plan set forth the entire agreement and
understanding of the parties to this Agreement with respect to the terms and conditions applicable
to the Deferred Stock Units and supersede all prior agreements, arrangements, plans, and
understandings relating to the Deferred Stock Units and the administration of the Plan.

9.6 Amendment and Waiver. Other than as provided in the Plan, this Agreement may be
amended, waived, modified or canceled only by a written instrument executed by the parties to this
Agreement or, in the case of a waiver, by the party waiving compliance. This Agreement shall be
interpreted in a manner consistent with compliance under Section 409A of the Code, and the parties
shall cooperate to amend this Agreement should it be determined that such amendment is necessary or
desirable for compliance with Section 409A of the Code.

The parties to this Agreement have executed this Agreement effective as of the day and year
first above written.

ARBITRON INC.

By Kathleen T. Ross

Its  EVP & Chief Administrative Officer

	 	 	 
	By execution of this Agreement,	 	EXECUTIVE
	the Executive acknowledges having
	received a copy of the Plan.	 	/s/ Stephen B. Morris
	 	 	(Signature)
	
 
	 	Stephen B. Morris
	
 
	 	 
	
 
	 	(Name and Address)
	 
	 	 
	
 
	 	300 Mt. Holly Road
	
 
	 	 
	 
	 	 
	
 
	 	Katonah, NY 10536
	
 
	 	 
	 
	 	 
	
 
	 	Social Security Number:

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