Document:

ex10-18

 

Exhibit 10.18

ARBITRON INC.

AMENDMENT NO. 1 TO THE

EXECUTIVE EMPLOYMENT AGREEMENT

BETWEEN ARBITRON INC.

AND

STEPHEN B. MORRIS

THIS AMENDMENT NO. 1 TO THE EXECUTIVE EMPLOYMENT AGREEMENT (this “Amendment”)
is entered into as of November 9, 2001 by and between Arbitron Inc., a Delaware
corporation (“Arbitron”), and Stephen B. Morris (“Executive”) for the purpose
of amending the Executive Employment Agreement, dated April 1, 2001, by and
between Arbitron and Executive (the “Employment Agreement”). All capitalized
terms herein and not otherwise defined shall have the meanings ascribed to them
in the Employment Agreement.

WHEREAS, Arbitron and Executive desire to amend certain provisions of the
Employment Agreement to clarify certain matters as provided herein;

NOW, THEREFORE, in consideration of the foregoing premises and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

1.     Section 4.03(b). The text of Section 4.03(b) shall be deleted in its
entirety and replaced with the following:

		
	 	“(b)      if the notice of termination is given by Arbitron, (1)
Executive shall be paid at the usual rate of his annual Base Salary
through the 75 day notice period, however, Arbitron shall have the
option of making termination of the Agreement and Executive’s
employment effective immediately upon notice in which case
Executive shall be paid a lump sum representing the value of 75
days worth of salary; and (2) Executive shall receive, starting
within 15 days after the end of the 75 day notice period, two
years’ Base Salary payable, at the sole discretion of Arbitron, in
either the form of a lump sum payment or on a regular payroll
period basis. In addition, Executive shall receive an amount equal
to two times the bonus, that would have been paid at the target
level under all applicable Arbitron bonus plans in effect at the
time of termination of this Agreement, had Executive remained
continuously employed for the full fiscal year in which termination
occurred and continued to perform his duties in the same manner as
they were performed immediately prior to termination. This bonus
amount shall be paid within 15 days after the date such bonus would
have been paid had Executive remained employed for the full fiscal

 

 

		
	 	year. In addition, for a period of two years following termination or until
re-employment with benefits, pursuant to this Section 4.03(b), the
Executive would be entitled to receive from Arbitron the same or
equivalent health, dental, accidental death and dismemberment, short and
long-term disability, life insurance coverages, and all other insurance
policies and health and welfare benefits programs, policies or
arrangements, at the same levels and coverages as Executive was receiving
on the day immediately prior to his termination. Executive shall be
required to pay no more for the above mentioned benefits than he paid as
an active employee, or if provided by Arbitron at no cost to employee on
the day immediately prior to Executive’s termination, they shall continue
to be made available to Executive on this basis. In addition, Arbitron
shall provide or make arrangements for reasonable outplacement services
for Executive based on his level within Arbitron.”

2.     The text of Section 7.03(a) shall be deleted in its entirety and replaced
with the following:

		
	 	“(a)      In the event of a Change of Control Termination that occurred
during the term of this Agreement, then, and without further action
by the Board, Compensation Committee or otherwise, Arbitron shall,
within five (5) days of such termination, make a lump sum payment
to Executive in an amount equal to three (3) times the sum of (i)
twelve (12) months of Base Salary at the rate in effect at the time
of Executive’s termination, (ii) the bonus that Executive would
have received at the target level under all applicable Arbitron
bonus plans for the year in which the termination occurs at the
target award level applicable to the year in which termination
occurs, and (iii) the annual perquisite cash adder Executive would
have received in the year in which the termination occurs.”

3.     The text of Section 7.07 shall be deleted in its entirety and replaced with
the following:

		
	 	“Benefits Continuation. In the event of a Change of Control
Termination for a period of three (3) years or until re-employment
with benefits, Executive (and anyone entitled to claim under or
through Executive) shall be entitled to receive from Arbitron the
same or equivalent health, dental, accidental death and
dismemberment, short and long-term disability, life insurance
coverages, and all other insurance policies and health and welfare
benefits programs, policies or arrangements, at the same levels and
coverages as Executive was receiving on the day immediately prior
to the Change of Control at a

2

 

		
	 	cost not to exceed the amount Executive would continue to pay had
he continued to be an active employee of Arbitron. To the extent
that election of continuation of any of such coverages, programs,
policies, or arrangements is made available to employees
terminating at age fifty-five (55) with fifteen (15) or more years
of service, Executive shall be required to pay no more for
continuation than is required of such employees on the day
immediately prior to the Change of Control. If no such
continuation program is available, Executive shall be required to
pay no more than he paid as an active employee, or if provided by
Arbitron at no cost to employees on the day immediately prior to
the Change of Control, they shall continue to be made available to
Executive on this basis.”

4.     Construction of Employment Agreement. The Employment Agreement shall be
read together with this Amendment and shall have the same force and effect as
if the provisions of the Employment Agreement and this Amendment were contained
in one document. Except as expressly amended by this Amendment, the Employment
Agreement shall remain in full force and effect in accordance with its terms.

5.     Counterparts. This Amendment may be executed in one or more counterparts,
all of which shall be considered one and the same agreement, and shall become
effective when one or more such counterparts have been signed by each of the
parties and delivered to the other party.

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed
as of the day and year first above written.

	 	 	 	 
	EXECUTIVE:	ARBITRON INC.:
	 
	By:	/s/ Stephen B. Morris

Stephen B. Morris	By:	/s/ Lawrence Perlman

Lawrence Perlman
	Address:	142 West 57th Street

New York, New York 10019	Title:	Chairman of the Board

  of Directors

3ex10-19

 

Exhibit 10.19

ARBITRON INC.

AMENDMENT NO. 2 TO THE

EXECUTIVE EMPLOYMENT AGREEMENT

BETWEEN ARBITRON INC.

AND

STEPHEN B. MORRIS

THIS AMENDMENT NO. 2 TO THE EXECUTIVE EMPLOYMENT AGREEMENT (this “Amendment”)
is entered into as of November 9, 2001 by and between Arbitron Inc., a Delaware
corporation (“Arbitron”), and Stephen B. Morris (“Executive”) for the purpose
of amending the Executive Employment Agreement, dated April 1, 2001, as
amended, by and between Arbitron and Executive (the “Agreement”). All
capitalized terms herein and not otherwise defined shall have the meanings
ascribed to them in the Agreement.

WHEREAS, Arbitron wishes to amend the Agreement, in order to provide the
Executive with benefits equivalent to those Arbitron has determined to provide
to its other executive officers.

NOW, THEREFORE, in consideration of Executive’s acceptance of and continuance
in Executive’s employment for the term of the Agreement and the parties’
agreement to be bound by the terms contained in the Agreement as modified
herein, the parties agree as follows:

1.     Section 4.03(b) of the Agreement is hereby deleted, and in its place a new
Section 4.03(b) is to read in its entirety as follows:

		
	 	(b)     if the notice of termination is given by
Arbitron, (i) Executive shall be paid at the usual rate
of his annual Base Salary through the 75-day notice
period, however, Arbitron shall have the option of
making termination of the Agreement and Executive’s
employment effective immediately upon notice in which
case Executive shall be paid a lump sum representing
the value of 75 days worth of salary, and (ii)
Executive shall receive payment, starting within
fifteen days after the end of the 75-day notice period,
equal to two times the sum of (A) 12 months of Base
Salary at the rate in effect at the time of Executive’s
termination, and (B) the bonus, if any, that Executive
would have received under all applicable Arbitron bonus
plus for the year in which the termination occurs at
the higher of the target award applicable to the year
in which the termination occurs or the average of the
actual bonuses paid for the last three fiscal years.
This

 

 

			
	 	payment shall be made, at the sole discretion of Arbitron,
either in the form of a lump sum payment or on a regular
payroll period basis. In addition, for a period of two
years following termination pursuant to this Section
4.03(b), the Executive shall be entitled to receive from
Arbitron the same or equivalent health, dental, accidental
death and dismemberment, short and long-term disability,
life insurance coverages, and all other insurance policies
and health and welfare benefits programs, policies or
arrangements, at the same level and coverages as the
Executive was receiving on the day immediately prior to his
termination. Executive shall be required to pay no more for
the above mentioned benefits than he paid as an active
employee, or if provided by Arbitron at no cost to employee
on the day immediately prior to Executive’s termination,
they shall continue to be made available to Executive on
this basis. In addition, Arbitron shall provide or make
arrangements for reasonable outplacement services for
Executive based on his level within Arbitron.

2.     Section 7.01 is hereby amended to add the following three definitions in the
alphabetical order in which they would have appeared had these definitions been
present in the original Agreement:

			
	 	“Black-Scholes Termination Value” shall mean, with respect
to each of Executive’s Eligible Options, the difference
between (i) the Black-Scholes value of the Eligible Option
had it continued for its entire term, such value determined
as of the date of the Change of Control, using (A) a share
price equal to the value per share of the consideration
received in the Change of Control transaction, (B) a
volatility input equal to the measured daily volatility for
the 180 days ending on the Determination Date, and (C) an
interest rate equal to the rate on 10-year Treasury constant
maturities (zero coupon bonds) for the date of consummation
of the Change of Control, as published by the Federal
Reserve, and (ii) the in-the-money amount of the Eligible
Option (i.e., the number of unexercised option shares
multiplied by the difference between the value per share of
the consideration received in the Change of Control and the
exercise price per share).

			
	 	“Determination Date” shall mean the earlier of the date one
week after the date on which Arbitron or the entity
effecting the

2

 

		
	 	Change of Control first announces to the public the
existence of a definitive agreement leading to the Change of
Control or the date of commencement of a tender offer
leading to the Change of Control.
	 
	 	“Eligible Option” shall mean the Company stock options held
by Executive that were granted prior to January 1, 2003.

3.     Section 7.01 is hereby amended to delete the current definition of “Change
of Control Termination,” replacing that definition in its entirety with the
following:

		
	 	“Change of Control Termination” means the termination of
Executive’s employment with Arbitron within two years after
a Change of Control for any reason other than fraud,
misrepresentation, theft or embezzlement of Arbitron assets,
intentional violation of laws of moral turpitude or failure
to follow Arbitron’s conduct and ethics policies. A Change
of Control termination includes termination by reason of
death or Disability.

4.     There shall be added new Sections 7.03A, Special Stock-Based Payment, after
Section 7.03 to read in their entirety as follows:

		
	 	7.03A Stock Option Provisions in Connection with a Change of
Control.
	 
	 	(a)     Special Vesting Rule. If there is a Change of Control,
then, notwithstanding the current Section 12.3 of the Arbitron Inc.
1999 Stock Incentive Plan (the “Plan”) or any other provision of
the Plan and notwithstanding the current Section 3.3(b) of the
Arbitron Inc. 1999 Stock Incentive Plan Non-Qualified Stock Option
Agreement (the “NQSO”) or any other provision of the NQSO, the
Executive’s Eligible Options shall fully and immediately vest upon
the consummation of the Change of Control. This Section 7.03A(a)
shall not be changed or otherwise modified without the written
consent of the Executive.
	 
	 	(b)     Special Stock-Based Payment in Connection with a Certain Change
of Control. If there is a Change of Control, then, notwithstanding
any contrary provision in the option agreements covering the
Executive’s Eligible Options, 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 with a cash
payment equal to the sum of (i) the in-the-money value of the

3

 

		
	 	Executive’s Eligible Options (i.e., the number of unexercised
option shares multiplied by the difference between the value per
share of the consideration received in the Change of Control and
the exercise price per share), and (ii) the Black-Scholes
Termination Value of the Executive’s Eligible Options. Upon
payment of the cash amount just described, the Eligible Options
shall expire, and no longer shall be exercisable.

5.     The Agreement shall be read together with this Amendment No. 1 and shall
have the same force and effect as if the provisions of the Agreement and this
Amendment were contained in one document. Except as expressly amended by this
Amendment, the Agreement shall remain in full force and effect in accordance
with its terms.

6.     This Amendment may be executed in one or more counterparts, all of which
shall be considered one and the same agreement, and shall become effective when
one or more such counterparts have been signed by each of the parties and
delivered to the other party.

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed
as of the day and year first above written.

	 	 	 	 
	EXECUTIVE:	ARBITRON INC.:
	 
	By:	/s/ Stephen B. Morris

Stephen B. Morris	By:	/s/ Lawrence Perlman

Lawrence Perlman
	Address:	142 West 57th Street

New York, New York 10019	Title:	Chairman of the Board

of Directors

4

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