Document:

exv10w19

 

Exhibit 10.19

ARBITRON INC.

Schedule of 2004 Bonuses and 2005 Bonus Parameters

for Named Executive Officers

2004 Bonuses for Named Executive Officers

     On January 27, 2005, the Compensation and Human Resources Committee (the “Committee”) of the
Board of Directors of Arbitron Inc. (the “Company”) met and made certain determinations that affect
the bonuses for executive officers for 2004.

     The Committee previously established certain parameters for determining bonuses for executive
officers for 2004. These parameters included achievement of various objective and subjective
Company performance goals, as well as individual performance goals in certain circumstances. The
bonus determinations for Mr. Steve Morris, the Company’s chief executive officer, and Mr. Bill
Walsh, the Company’s chief financial officer, were established based on the Committee’s review and
determination of the Company’s 2004 performance in comparison to the goals established by the
Committee. Bonuses for Mr. Owen Charlebois and Ms. Janice Giannini, two of the Company’s other
named executive officers, were established based on an assessment of their individual performance
and the determination by the Committee of the Company’s performance based on the goals previously
established by the Committee. As a result of the Committee’s review and determination, the
following executive officers will be entitled to a bonus for 2004 in the amounts set forth below:

	 	 	 
	Name and Principal Position	 	2004 Bonus
	Stephen B. Morris
	 	 
	President and Chief Executive Officer.

	 	77% of 2004 base salary
	Owen Charlebois
	 	 
	President of U.S. Media Services.

	 	51% of 2004 base salary
	William J. Walsh
	 	 
	Executive Vice President of Finance and Planning and
	 	 
	Chief Financial Officer.

	 	44% of 2004 base salary
	Janice Giannini
	 	 
	Executive Vice President and Chief Information Officer

	 	37% of 2004 base salary

The bonus for Mr. Pierre Bouvard, the Company’s other named executive officer in 2004, has not
yet been determined.

2005 Bonus Parameters for Named Executive Officers

     On February 23, 2005, the Compensation and Human Resources Committee (the “Committee”) of the
Board of Directors of Arbitron Inc. (the “Company”) met and approved the establishment of certain
parameters for determining bonuses for executive officers for 2005,

 

 

which would be payable in early 2006.

     The Committee set various objective and subjective Company goals in terms of earnings per
share, revenue and implementation of certain non-financial initiatives, with certain weightings
attributable to achievement of each of these goals. The Committee then established various criteria
for achieving “threshold”, “target” and “superior” performance in relation to these goals. Under
the bonus arrangements currently in place, each executive officer’s bonus can be weighted to take
into account achievement of both Company goals and individual goals. As a general matter, the bulk
of an executive officer’s bonus for 2005 will be determined as a result of achievement of Company
goals, with the remaining portion based on achievement of individual goals, except in the case of
Mr. Steve Morris, the Company’s President and Chief Executive Officer, and Bill Walsh, the
Company’s Executive Vice President, Finance and Planning and Chief Financial Officer, whose bonuses
will be determined entirely on the basis of achievement of Company goals.

     Taking into account the foregoing, the Committee established a “target” bonus for each
executive officer, expressed as a percentage of base salary. The target bonuses for the executive
officers who are expected to be “named executive officers” in 2005 are set forth below:

	 	 	 
	Name and Principal Position	 	2005 Target Bonus
	Stephen B. Morris
	 	 
	President and Chief Executive Officer.

	 	75% of 2005 base salary
	Owen Charlebois
	 	 
	President of U.S. Media Services.

	 	50% of 2005 base salary
	Pierre C. Bouvard
	 	 
	President of
International/New Ventures.

	 	40% of 2005 base salary
	William J. Walsh
	 	 
	Executive Vice President of Finance and Planning and
	 	 
	Chief Financial Officer.

	 	40% of 2005 base salary
	Scott Henry
	 	 
	Executive Vice President and Chief Information Officer

	 	40% of 2005 base salary

     In addition, the Committee approved a supplementary bonus opportunity based on
achievement of certain additional non-financial goals in 2005. Under this opportunity, executive
officers may be eligible to receive an additional bonus equal to up to 100% of their “target” bonus
if these non-financial goals are achieved.

     The Committee has the discretion to award bonuses in excess of the percentages set forth
above.exv10w20

 

Exhibit 10.20

ARBITRON BENEFIT EQUALIZATION PLAN

As Adopted Effective as of January 1, 2001

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DESCRIPTION
	 	 	2	 
	1.1 Structure and Name
	 	 	2	 
	1.2 Purpose
	 	 	2	 
	1.3 Type
	 	 	2	 
	1.4 Background
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2 BENEFITS
	 	 	3	 
	2.1 Amount
	 	 	3	 
	2.2 Form and Time of Payment
	 	 	4	 
	2.3 Entitlement, Reductions
	 	 	4	 
	2.4 Payment in the Event of Incapacity
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 3 SOURCE OF PAYMENTS; NATURE OF INTEREST
	 	 	6	 
	3.1 Establishment of Trust
	 	 	6	 
	3.2 Source of Payments
	 	 	6	 
	3.3 Status of Plan
	 	 	6	 
	3.4 Non-assignability of Benefits
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 4 ADOPTION, AMENDMENT AND TERMINATION
	 	 	7	 
	4.1 Adoption
	 	 	7	 
	4.2 Amendment
	 	 	7	 
	4.3 Termination of Participation
	 	 	7	 
	4.4 Termination
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 5 DEFINITIONS, CONSTRUCTION AND INTERPRETATION
	 	 	10	 
	5.1 Administrator
	 	 	10	 
	5.2 Affiliated Organization
	 	 	10	 
	5.3 Board
	 	 	10	 
	5.4 Code
	 	 	10	 
	5.5 Company
	 	 	10	 
	5.6 Compensation Equalization Plan
	 	 	10	 
	5.7 ERISA
	 	 	10	 
	5.8 Excess Benefit Plan
	 	 	10	 
	5.9 Executive Investment Plan
	 	 	10	 
	5.10 Governing Law
	 	 	11	 
	5.11 Headings
	 	 	11	 
	5.12 Number and Gender
	 	 	11	 
	5.13 Participant
	 	 	11	 
	5.14 Participating Employer
	 	 	11	 
	5.15 Pension Plan
	 	 	11	 
	5.16 Plan
	 	 	11	 
	5.17 Trust
	 	 	11	 
	5.18 Trustee
	 	 	11	 

 i 

 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 6 ADMINISTRATION
	 	 	12	 
	6.1 Administrator
	 	 	12	 
	6.2 Rules and Regulations
	 	 	12	 
	6.3 Administrator’s Discretion
	 	 	12	 
	6.4 Specialist’s Assistance
	 	 	12	 
	6.5 Indemnification
	 	 	12	 
	6.6 Benefit Claim Procedure
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 7 MISCELLANEOUS
	 	 	14	 
	7.1 Withholding and Offsets
	 	 	14	 
	7.2 Other Benefits
	 	 	14	 
	7.3 No Warranties Regarding Tax Treatment
	 	 	14	 
	7.4 No Employment Rights Created
	 	 	14	 

 ii 

 

 

ARBITRON BENEFIT EQUALIZATION PLAN

ARTICLE 1

Description

	1.1  	Structure and Name. The Plan consists of two separate component plans which, for
administrative convenience, have been incorporated in one instrument. One such component plan
is the Excess Benefit Plan and the other such component plan is the Compensation Equalization
Plan. Together, the two component plans are referred to as the “Arbitron Benefit Equalization
Plan.”

	1.2  	Purpose. The purpose of the Excess Benefit Plan is to ensure that Pension Plan
participants will not be deprived of benefits that would otherwise be payable under the
Pension Plan but for the operation of the provisions of Code section 415. The purpose of the
Compensation Equalization Plan is to ensure that Pension Plan participants will not be
deprived of benefits that would otherwise be payable under the Pension Plan but for the
operation of the provisions of Code section 401(a)(17) or certain elections relative to the
form of bonus payments or the deferral of compensation pursuant to the Executive Investment
Plan.

	1.3  	Type. The Excess Benefit Plan is an unfunded “excess benefit plan” within the
meaning of section 3(36) of ERISA and, as such, is exempt from ERISA by operation of sections
4(b)(5) and 4021(b)(8) thereof. The Compensation Equalization Plan is an unfunded plan
maintained primarily for the purpose of providing deferred compensation for a select group of
management or highly compensated employees and, as such, is exempt from Parts 2, 3 and 4 of
Subtitle B of Title I of ERISA by operation of sections 201(2), 302(a)(3) and 401(a)(4)
thereof, respectively, and from Title IV of ERISA by operation of section 4021(a)(6) thereof.
The Excess Benefit Plan and Compensation Equalization Plan are also intended to be unfunded
for tax purposes. The Plan will be construed and administered in a manner that is consistent
with and gives effect to the foregoing.

	1.4  	Background. Effective as of the close of business on December 31, 2000, the Company
caused assets and liabilities of the Ceridian Corporation Retirement Plan attributable to
certain participants who were then employed with the Company or an Affiliated Organization to
be transferred to the Pension Plan, which was adopted by the Company effective as of January
1, 2001. In connection with the adoption of the Pension Plan, the Company adopted the Plan,
effective as of January 1, 2001, as a successor to the Ceridian Corporation Benefit
Equalization Plan for participants in the Pension Plan.

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ARTICLE 2

Benefits

2.1 Amount.

	 	(A)  	As of the date on which a Participant’s Pension Plan benefit is scheduled to
commence, the Administrator will determine the amount of the benefit to which the
Participant is entitled pursuant to the Plan in accordance with Subsection (B).
	 
	 	(B)  	Subject to Sections 2.2 and 2.3, the amount of a Participant’s benefit will be
computed in the following manner:

	 	(1)  	The Administrator will determine a monthly benefit amount equal
to the amount by which the monthly benefit determined pursuant to clause (a)
exceeds the monthly benefit determined pursuant to clause (b), in each case
based on a benefit payable in the normal form under the Pension Plan commencing
at the later of the participant’s normal retirement date under the Pension Plan
or his or her age on the date on which benefits under the Pension Plan are
scheduled to commence.

	 	(a)  	The monthly benefit to which the Participant
would be entitled under the Pension Plan determined

	 	(i)  	without regard to any limitations
imposed under the Pension Plan to satisfy the provisions of Code
sections 401(a)(17) and 415,
	 
	 	(ii)  	by including as annual
compensation for a plan year for purposes of calculating
benefits any amount that would have otherwise been paid to the
Participant as base salary or a cash bonus during the plan year
but for the Participant’s election pursuant to the Executive
Investment Plan (but only to the extent such amount is not
otherwise taken into account under the Pension Plan for such
plan year and, in the case of a cash bonus, only if the cash
bonus would otherwise be considered “annual compensation,”
within the meaning of the Pension Plan, for such plan year) and
	 
	 	(iii)  	if and only if the Administrator
determines that the Participant is a member of a select group of
management or highly compensated employees, by including as
annual compensation for a plan year any amount that would have
been paid to the Participant as a cash bonus during the plan
year but for the Participant’s election to receive such

3

 

	 	   	amount in the form of common stock of the Company or an
option to purchase such stock (but only to the extent such
amount is not otherwise taken into account under the Pension
Plan for such plan year).

	 	(b)  	The actual amount of the monthly benefit to
which the Participant is entitled under the Pension Plan.

	 	(2)  	The amount determined pursuant to clause (1) will be adjusted
in the same manner as the Participant’s benefit under the Pension Plan to
reflect any early or late commencement of the benefit.

	 	(C)  	If a Participant dies before his or her “annuity starting date,” within the
meaning of Code section 417(f)(2), and the Participant’s surviving spouse is entitled
to a “qualified preretirement survivor annuity,” within the meaning of Code section
417(c), from the Pension Plan or the Pension Plan provides for the payment of any other
death benefit to the surviving spouse or any other person, the amount of the benefit to
which the surviving spouse or other person is entitled pursuant to the Plan will be
determined in accordance with Subsection (B) but based, for the purpose of clause (1),
on the difference between the normal form of the death benefit determined under items
(a) and (b).

2.2 Form and Time of Payment.

	 	(A)  	Payment of a benefit to any Participant determined pursuant to Section 2.1(B)
or surviving spouse or other person determined pursuant to Section 2.1(C) will be made
or commence, as the case may be, at the same time and in the same form as his or her
benefit under the Pension Plan.
	 
	 	(B)  	If a Participant, surviving spouse or other person entitled to receive a
benefit under the Plan elects to receive his or her benefit under the Pension Plan in a
form other than the normal form, the benefit under the Plan will be actuarially
adjusted to reflect the form in which it is paid in the same manner as the benefit
under the Pension Plan.
	 
	 	(C)  	If a Participant dies following the commencement of monthly benefit payments,
any death benefits payable under the form of payment applicable to the Participant’s
benefit under the Plan will be paid to the same beneficiary or joint or contingent
annuitant, as the case may be, as his or her benefit under the Pension Plan.

	2.3  	Entitlement, Reductions. Notwithstanding the foregoing provisions of this Article 2
–

	 	(A)  	A Participant who has elected to participate in the Pension Plan on an
after-tax basis is not entitled to a benefit under the Plan attributable to annual

4

 

	 	   	compensation in excess of the limitation in effect under Code section 401(a)(17) or
deferred under the Executive Investment Plan unless, prior to a date specified by
the Administrator, the Participant makes an irrevocable election, applicable to any
period of future employment with respect to which his or her Pension Plan after-tax
participation election applies, to forego four percent of that portion of his or her
compensation that is (i) attributable to services performed after the date of the
election and (ii) not taken into account under the Pension Plan solely by reason of
the Code section 401(a)(17) limitation or the Participant’s election pursuant to the
Executive Investment Plan.
	 
	 	(B)  	If, after commencement of monthly benefit payments under the Plan, the amount
of monthly payments to which the Participant is entitled under the Pension Plan is
increased by reason of an increase in the limitations under Code section 415, the
amount of the monthly payments to which he or she is entitled under the Plan will be
decreased by the amount of monthly payment increase under the Pension Plan.
	 
	 	(C)  	A former Participant is not entitled to a benefit under the Plan to the extent
the liability for such benefit has been transferred to or assumed by a successor to all
or any portion of the business of the Participating Employer.
	 
	 	(D)  	If a Participant who is receiving or entitled to receive a benefit pursuant to
the Plan is reemployed with a Participating Employer or an affiliate of a Participating
Employer and, in connection with such reemployment, his or her Pension Plan benefit
payment is suspended, his or her benefit under the Plan will be suspended for the same
period. The Participant’s benefit under the Plan will recommence at the same time as
his or her benefit under the Pension Plan and the amount of the benefit at
recommencement will be adjusted in accordance with Plan Rules to reflect any additional
benefits earned and benefits previously paid.

	2.4  	Payment in the Event of Incapacity. If any person entitled to receive any payment
under the Plan is physically, mentally, or legally incapable of receiving or acknowledging
receipt thereof, and no legal representative has been appointed for such person, the
Administrator, in his or her discretion, may (but is not required to) cause any sum otherwise
payable to such person to be paid to any one or more of the following (as may be chosen by the
Administrator): the person’s beneficiary or joint or contingent annuitant for purposes of his
or her benefit under the Plan, if any, the institution maintaining such person, a custodian
for such person under the Uniform Transfers to Minors Act of any state, or such person’s
spouse, children, parents or other relatives by blood or marriage. Any payment so made
completely discharges all liability under the Plan to the extent of such payment.

5

 

ARTICLE 3

Source Of Payments; Nature Of Interest

	3.1  	Establishment of Trust. Each Participating Employer may establish a Trust, or become
covered under a Trust established by another Participating Employer, with an independent
corporate trustee. The Trust must (a) be a grantor trust with respect to which the
Participating Employer is treated as grantor for purposes of Code section 677, (b) not cause
the Plan to be funded for purposes of Title I of ERISA or the Code and (c) provide that Trust
assets attributable to a Participating Employer will, upon the insolvency of the Participating
Employer, be used to satisfy the claims of the Participating Employer’s general creditors.
The Participating Employers may from time to time transfer to the Trust cash, marketable
securities or other property acceptable to the Trustee in accordance with the terms of the
Trust.
	 
	3.2  	Source of Payments.

	 	(A)  	Subject to Subsections (B) and (C), a Participant’s benefit will be paid by the
Participating Employer with whom the Participant was last employed.
	 
	 	(B)  	If a Participant has participated in the Pension Plan as an employee of more
than one Participating Employer, the Administrator will determine the portion of the
benefit to which the Participant is entitled under the Plan allocable to each such
Participating Employer.
	 
	 	(C)  	The Trustee will make distributions to Participants and Beneficiaries from the
Trust in satisfaction of a Participating Employer’s obligations under the Plan in
accordance with the terms of the Trust. The Participating Employer is responsible for
paying any benefits attributable to a Participant’s Account with respect to that
Participating Employer that are not paid by the Trust.

	3.3  	Status of Plan. Nothing contained in the Plan or Trust is to be construed as
providing for assets to be held for the benefit of any Participant or any other person or
persons to whom benefits are to be paid pursuant to the terms of this Plan, the Participant’s
or other person’s only interest under the Plan being the right to receive the benefits set
forth herein. The Trust is established only for the convenience of the Participating
Employers and the Participants, and no Participant has any interest in the assets of the Trust
prior to distribution of such assets pursuant to the Plan. To the extent the Participant or
any other person acquires a right to receive benefits under this Plan or the Trust, such right
is no greater than the right of any unsecured general creditor of the Participating Employer.

	3.4  	Non-assignability of Benefits. The benefits payable under the Plan and the right to
receive future benefits under the Plan may not be anticipated, alienated, sold, transferred,
assigned, pledged, encumbered, or subjected to any charge or legal process.

6

 

ARTICLE 4

Adoption, Amendment And Termination

	4.1  	Adoption. With the prior approval of the Administrator, an Affiliated
Organization may adopt the Plan and become a Participating Employer by furnishing to the
Administrator a certified copy of a resolution of its Board adopting the Plan.
	 
	4.2  	Amendment.

	 	(A)  	The Company reserves the right to amend the Plan at any time to any extent that
it may deem advisable. To be effective, an amendment must be stated in a written
instrument approved in advance or ratified by the Company’s Board and executed in the
name of the Company by two of its officers.
	 
	 	(B)  	An amendment adopted in accordance with Subsection (A) is binding on all
interested parties as of the effective date stated in the amendment; provided, however,
that no amendment will have any retroactive effect so as to deprive any Participant, or
the beneficiary or joint or contingent annuitant of a deceased Participant, of any
benefit to which he or she is entitled under the terms of the Plan in effect
immediately prior to the effective date of the amendment, determined in the case of a
Participant who is employed by an Affiliated Organization, as if he or she had
terminated employment immediately prior to the effective date of the amendment.
	 
	 	(C)  	The provisions of the Plan in effect at the termination of a Participant’s
employment will, except as otherwise expressly provided by a subsequent amendment,
continue to apply to such Participant.

	4.3  	Termination of Participation.

	 	(A)  	Notwithstanding any other provision of the Plan to the contrary, if determined
by the Administrator to be necessary to ensure that the Plan is exempt from ERISA to
the extent contemplated by Section 1.3 or upon the Administrator’s determination that a
Participant’s interest in the Plan has been or is likely to be includable in the
Participant’s gross income for federal income tax purposes prior to the actual payment
of benefits pursuant to the Plan, the Administrator may take any or all of the
following steps:

	 	(1)  	terminate the Participant’s future participation in the Plan;
	 
	 	(2)  	cause the Participant’s entire interest in the Plan to be
distributed to the Participant in the form of an immediate lump sum; and/or

7

 

	 	(3)  	transfer the benefits that would otherwise be payable pursuant
to the Plan for all or any of the Participants to a new plan that is similar in
all material respects (other than those which require the action in question to
be taken.)

	 	(B)  	For the purpose of Subsection(A)(2), the lump sum value of a Participant’s
interest in the Plan will be determined

	 	(1)  	in the case of a Participant whose benefit under the Plan is
not then in pay status, in accordance with Article 2 but assuming that the
Participant had terminated employment and elected to receive his or her Pension
Plan benefit in the form of an immediate lump sum, or
	 
	 	(2)  	in the case of a Participant or beneficiary or joint or
contingent annuitant of a beneficiary whose benefit under the Plan is then in
pay status, by converting the expected future benefit from the form in which it
is being paid to an actuarially equivalent lump sum benefit using actuarial
assumptions specified in the Pension Plan.

	4.4  	Termination.

	 	(A)  	The Company reserves the right to terminate the Plan in its entirety at any
time. Each Participating Employer reserves the right to cease its participation in the
Plan or terminate the Plan with respect to any group of similarly situated current or
former employees of the Participating Employer at any time. The Plan will terminate in
its entirety or with respect to a particular Participating Employer or group of current
or former employees as of the date specified by the Company or such Participating
Employer in a written instrument approved in advance or ratified by the Company’s Board
and executed in the name of the Company by two of its officers.
	 
	 	(B)  	Upon the termination of the Plan in its entirety or with respect to any
Participating Employer or group of current or former employees, the Company or
Participating Employer, as the case may be, will either cause (1) any benefits to which
Participants have become entitled prior to the effective date of the termination to
continue to be paid in accordance with the provisions of Article 2 or (2) subject to
Subsection (C), cause the entire interest in the Plan of any or all Participants, or
the beneficiaries or joint or contingent annuitants of any or all deceased
Participants, to be distributed in the form of an immediate lump sum payment calculated
in accordance with the provisions of Section 4.3(B).
	 
	 	(C)  	If the Company determines in good faith that there is a reasonable likelihood
that any compensation paid to a Participant by an Affiliated Organization for a taxable
year of the Affiliated Organization would not be deductible by the Affiliated
Organization solely by reason of the limitation under Code section 162(m), to the

8

 

	 	   	extent deemed necessary by the Company to ensure that the entire amount of any
distribution pursuant to clause (2) of Subsection (B) is deductible, the Company may
defer all or any portion of the distribution. The deferred amounts and interest
thereon from the date on which the payment would have been made but for this
subjection and the date on which the payment is actually made at the rate then used
under the Pension Plan for the purpose of computing lump sum distributions will be
distributed to the Participant, or to his or her beneficiary in the case of the
Participant’s death, at the earliest possible date, as determined by the Company in
good faith, on which the deductibility of compensation paid or payable to the
Participant for the taxable year of the Affiliated Organization during which the
distribution is made will not be limited by Code section 162(m).

9

 

ARTICLE 5

Definitions, Construction And Interpretation

The definitions and rules of construction and interpretation set forth in this article apply
in construing the Plan unless the context otherwise indicates.

	5.1  	Administrator. “Administrator” is the Company, or the person to whom administrative
duties are delegated pursuant to the provisions of Section 6.1, as the context requires.

	5.2  	Affiliated Organization. “Affiliated Organization” is the Company and any
corporation that is a member of a controlled group of corporations, within the meaning of Code
section 414(b), that includes the Company.

	5.3  	Board. “Board” is the board of directors of the Affiliated Organization in question
or any individual or committee authorized to act on behalf of such board of directors pursuant
to a proper delegation.

	5.4  	Code. “Code” is the Internal Revenue Code of 1986, as amended from time to time, and
any reference to a section of the Code refers to that section or to the corresponding section
of the Code as amended.

	5.5  	Company. “Company” is Ceridian Corporation, to be renamed Arbitron Inc., or any
successor thereto.

	5.6  	Compensation Equalization Plan. “Compensation Equalization Plan” means the component
plan incorporated in this instrument for the purpose of ensuring that Participants will not be
deprived of benefits otherwise due them under the Pension Plan by operation of the provisions
of Code section 401(a)(17) or certain elections relative to the form of bonus payments or the
deferral of compensation pursuant to the Executive Investment Plan.

	5.7  	ERISA. “ERISA” is the Employee Retirement Income Security Act of 1974, as amended,
and any reference to a section of ERISA refers to that section or to the corresponding section
of ERISA as amended.

	5.8  	Excess Benefit Plan. “Excess Benefit Plan” is the component plan incorporated in
this instrument for the purpose of ensuring that Participants will not be deprived of benefits
otherwise due them under the Pension Plan by operation of the provisions of Code section 415.

	5.9  	Executive Investment Plan. “Executive Investment Plan” is the Arbitron Executive
Investment Plan, as adopted effective January 1, 2001 and as thereafter amended from time to
time. For the period prior to January 1, 2001, the Executive Investment Plan was the Ceridian
Corporation Executive Investment Plan.

10

 

	5.10  	Governing Law. To the extent state law is not preempted by the provisions of the
ERISA or any other laws of the United States, this Plan will be administered, construed and
enforced according to the internal laws of the State of Minnesota without regard to the
conflict of law principles of the State of Minnesota or any other jurisdiction.

	5.11  	Headings. The headings of articles, sections, subsections and clauses are included
solely for convenience and, if there is a conflict between such headings and the text of the
Plan, the text will control.

	5.12  	Number and Gender. Wherever appropriate, the singular may be read as the plural, the
plural may be read as the singular and one gender may be read as the other gender.

	5.13  	Participant. “Participant” is an employee of a Participating Employer who is (a) a
participant under the Pension Plan, (b) entitled to a benefit pursuant to the provisions of
Article 2 and (c) not a party to an agreement with the Participating Employer pursuant to
which he or she is not eligible to participate in the Plan.

	5.14  	Participating Employer. “Participating Employer” is the Company and any other
Affiliated Organization that has adopted the Plan, or all of them collectively, as the context
requires, and their respective successors. A Participating Employer will cease to be such
upon a termination of the Plan as to its employees and the satisfaction in full of all of its
obligations under the Plan or upon its ceasing to be an Affiliated Organization.

	5.15  	Pension Plan. “Pension Plan” is the Arbitron Retirement Plan, as adopted effective
as of January 1, 2001 and as thereafter amended. For the period prior to January 1, 2001, the
Pension Plan was the Ceridian Corporation Retirement Plan.

	5.16  	Plan. The “Plan” is the Compensation Equalization Plan or the Excess Benefit Plan or
both of them, as the context requires. For the period prior to January 1, 2001, the Plan was
the Ceridian Corporation Benefit Equalization Plan or either or both of the Ceridian
Corporation Compensation Equalization Plan and the Ceridian Corporation Excess Benefit Plan,
as the context requires.

	5.17  	Trust. “Trust” means any trust or trustee established by a Participating Employer
pursuant to Section 3.1.

	5.18  	Trustee. “Trustee” means the independent corporate trustee or trustees that at the
relevant time has or have been appointed to act as Trustee of the Trust.

11

 

ARTICLE 6

Administration

	6.1  	Administrator. The general administration of the Plan and the duty to carry out its
provisions is vested in the Company. The Company may delegate such duty or any portion
thereof to a named person and may from time to time revoke such authority and delegate it to
another person.

	6.2  	Rules and Regulations. The Administrator has the discretionary power and authority
to make such rules and regulations as the Administrator determines to be consistent with the
terms, and necessary or advisable in connection with the administration, of the Plan and to
modify or rescind any such rules or regulations.

	6.3  	Administrator’s Discretion. The Administrator has the discretionary power and
authority to make all determinations necessary for administration of the Plan, except those
determinations that the Plan requires others to make, and to construe, interpret, apply and
enforce the provisions of the Plan and Plan rules and regulations whenever necessary to carry
out its intent and purpose and to facilitate its administration, including, without
limitation, the discretionary power and authority to remedy ambiguities, inconsistencies,
omissions and erroneous benefit calculations. In the exercise of its discretionary power and
authority, the Administrator will treat all similarly situated persons uniformly.

	6.4  	Specialist’s Assistance. The Administrator may retain such actuarial, accounting,
legal, clerical and other services as may reasonably be required in the administration of the
Plan, and may pay reasonable compensation for such services. All costs of administering the
Plan will be paid by the Participating Employers.

	6.5  	Indemnification. The Participating Employers jointly and severally agree to
indemnify and hold harmless, to the extent permitted by law, each director, officer, and
employee of any Affiliated Organization against any and all liabilities, losses, costs and
expenses (including legal fees) of every kind and nature that may be imposed on, incurred by,
or asserted against such person at any time by reason of such person’s services in connection
with the Plan, but only if such person did not act dishonestly or in bad faith or in willful
violation of the law or regulations under which such liability, loss, cost or expense arises.
The Participating Employers have the right, but not the obligation, to select counsel and
control the defense and settlement of any action for which a person may be entitled to
indemnification under this provision.

12

 

6.6 Benefit Claim Procedure.

	 	(A)  	If a request for a benefit by a Participant or beneficiary of a deceased
Participant is denied in whole or in part, he or she may, not later than 30 days after
the denial, file with the Administrator a written claim objecting to the denial.
	 
	 	(B)  	The Administrator, not later than 90 days after receipt of such claim, will
render a written decision to the claimant on the claim. If the claim is denied, in
whole or in part, such decision will include the reason or reasons for the denial; a
reference to the Plan provisions on which the denial is based; a description of any
additional material or information, if any, necessary for the claimant to perfect his
or her claim; an explanation as to why such information or material is necessary; and
an explanation of the Plan’s claim procedure.
	 
	 	(C)  	The claimant may file with the Administrator, not later than 60 days after
receiving the Administrator’s written decision, a written notice of request for review
of the Administrator’s decision, and the claimant or his or her representative may
thereafter review relevant Plan documents which relate to the claim and may submit
written comments to the Administrator.
	 
	 	(D)  	Not later than 60 days after receipt of such review request, the Administrator
will render a written decision on the claim, which decision will include the specific
reasons for the decision, including a reference to the Plan’s specific provisions where
appropriate.
	 
	 	(E)  	The foregoing 90 and 60-day periods during which the Administrator must respond
to the claimant may be extended by up to an additional 90 or 60 days, respectively, if
special circumstances beyond the Administrator’s control so require and notice of such
extension is given to the claimant prior to the expiration of such initial 90 or 60-day
period, as the case may be.
	 
	 	(F)  	A claimant must exhaust the procedure described in this section before making
any claim of entitlement to benefits pursuant to the Plan in any court or other
proceeding.

13

 

ARTICLE 7

Miscellaneous

	7.1  	Withholding and Offsets. The Participating Employers and the Trustee retain the
right to withhold from any compensation or benefit payment pursuant to the Plan any and all
income, employment, excise and other tax as the Participating Employers or Trustee deem
necessary in connection with any benefits earned or paid pursuant to the Plan and the
Participating Employers may offset against amounts payable to any person under the Plan any
amounts then owing to the Participating Employers by such persons.

	7.2  	Other Benefits. No amounts paid pursuant to the Plan constitute salary or
compensation for the purpose of computing benefits under any other benefit plan, practice,
policy or procedure of a Participating Employer unless otherwise expressly provided
thereunder.

	7.3  	No Warranties Regarding Tax Treatment. The Participating Employers make no
warranties regarding the tax treatment to any person of participation in the Plan or any
action or omission of the Participating Employer or Participant in connection therewith and
each Participant will hold the Administrator and the Participating Employers and their
officers, directors, employees, agents and advisors harmless from any liability resulting from
any tax position taken in good faith in connection with the Plan.

	7.4  	No Employment Rights Created. Neither the establishment of or participation in the
Plan gives any employee a right to continued employment or limits the right of any Affiliated
Organization to discharge, transfer, demote or modify the terms and conditions of employment
or otherwise deal with any employee without regard to the effect such action might have on his
or her with respect to the Plan.

14

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