Document:

Form of Non-Employee Director Nonqualified Stock Option Award Agreement

 Exhibit 10.3 

AWARD AGREEMENT 

Under The 

Barrett Business Services, Inc. 

2009 Stock Incentive Plan 

NON-EMPLOYEE DIRECTOR NONQUALIFIED STOCK OPTION 
  

					
	Corporation:	  	BARRETT BUSINESS SERVICES, INC.	  	
		  	 8100 N.E. Parkway Drive, Suite 200

Vancouver, Washington 98662
	  	
			
	Participant:	  	  
	  	
		  	  
	  	
		  	  
	  	
			
	Date:	  	            , 20    	  	

 Corporation maintains the Barrett Business Services, Inc., 2009 Stock Incentive Plan (the
“Plan”). 
 This Award Agreement evidences the grant of a Nonqualified Option (the “Option”) to Participant.

 The parties agree as follows: 

1. Defined Terms 
 When
used in this Agreement, the following terms have the meaning specified below: 
 (a) “Acquiring
Person” means any person or related person or related persons which constitute a “group” for purposes of Section 13(d) and Rule 13d-5 under the Securities Exchange Act of 1934 (the “Exchange Act”), as such
Section and Rule are in effect as of the Grant Date; provided, however, that the term Acquiring Person shall not include (i) Corporation or any of its Subsidiaries, (ii) any employee benefit plan of Corporation or any of its Subsidiaries,
(iii) any entity holding voting capital stock of Corporation for or pursuant to the terms of any such employee benefit plan, or (iv) any person or group solely because such person or group has voting power with respect to capital stock of
Corporation arising from a revocable proxy or consent given in response to a public proxy or consent solicitation made pursuant to the Exchange Act. 

(b) “Change in Control” means: 

(i) A change in control of Corporation of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A as in effect on the Grant Date pursuant to the Exchange Act; provided that, without limitation, such a change in control shall be deemed to have occurred at such time as any Acquiring Person hereafter becomes
the “beneficial owner” (as defined in Rule l3d-3 under the Exchange Act), directly or indirectly, of 30 percent or more of the combined voting power of Voting Securities; or 

 

 - 1 - 

 (ii) During any period of 12 consecutive calendar months, individuals who at
the beginning of such period constitute the Board cease for any reason to constitute at least a majority thereof unless the election, or the nomination for election, by Corporation shareholders of each new director was approved by a vote of at least
a majority of the directors then in office who were directors at the beginning of the period; or 
 (iii) There
shall be consummated (1) any consolidation or merger of Corporation in which Corporation is not the continuing or surviving corporation or pursuant to which Voting Securities would be converted into cash, securities, or other property, other
than a merger of Corporation in which the holders of Voting Securities immediately prior to the merger have the same proportionate ownership of common stock of the surviving corporation immediately after the merger, or (2) any sale, lease,
exchange, or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of Corporation; or 

(iv) Approval by the shareholders of Corporation of any plan or proposal for the liquidation or dissolution of
Corporation. 
 (c) “Change in Control Date” means the first date following the Grant
Date on which a Change in Control has occurred. 
 (d) “Grant Date” means the date the
Option is granted, which is reflected as the date of this Agreement. 
 (e) “Retirement”
means ceasing to be a member of the Board for any reason (other than by removal) after service on the Board for at least 10 years. 

(f) “Voting Securities” means Corporation’s issued and outstanding securities ordinarily
having the right to vote at elections for director. 
 Capitalized terms not otherwise defined in this Agreement have the meanings given them in
the Plan. 
 2. Grant of Option 

Subject to the terms and conditions of this Agreement and the Plan, Corporation grants to Participant the Option to purchase
             Shares of Corporation’s common stock at $         per share [100 percent of the Fair Market Value of a Share
on the date of grant]. 
  

 - 2 - 

 3. Terms of Option 

The Option is subject to all the provisions of the Plan and to the following terms and conditions: 

3.1 Term. The term of the Option is ten years from the Grant Date and will automatically terminate on
            , 20    , to the extent not exercised, unless terminated earlier in accordance with this Agreement. 

3.2 Time of Exercise. Unless the Option is otherwise terminated or the time of its exercisability is accelerated in accordance
with this Agreement, the Option may be exercised from time to time to purchase Shares up to the following limits (based on years after the Grant Date and including any Shares previously purchased pursuant to the Option): 

(a) During the first year - none; 

(b) During the second year - up to 25 percent of the total Shares; 

(c) During the third year - up to 50 percent of the total Shares; 

(d) During the fourth year - up to 75 percent of the total Shares; and 

(e) After the fourth year - 100 percent. 

3.3 Continuation as Director. If Participant ceases to be a member of the Board for any reason, the right to exercise the Option,
to the extent the Option had become exercisable on or before the termination date, will expire at the end of the following periods: 
  

			
	 After Termination

On Account of
	  	 Period

	 Death
	  	1 year
	 Retirement
	  	5 years
	 Disability
	  	1 year
	 Any other reason
	  	3 months

 3.4 Acceleration of
Exercisability. Notwithstanding the schedule provided in subsection 3.2, the Option will become fully exercisable upon the occurrence of either: 

(a) Participant’s death or withdrawal from the Board by reason of Disability or Retirement; or 

(b) A Change in Control Date. 

3.5 Method of Exercise. The Option, or any portion thereof, may be exercised, to the extent it has become exercisable pursuant to
this Agreement, by delivery of written notice to Corporation stating the number of Shares, form of payment, and proposed date of closing. 

3.6 Other Documents. Participant will be required to furnish to Corporation before closing such other documents or representations
as Corporation may require to assure compliance with applicable laws and regulations. 
  

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 3.7 Payment. The exercise price for the Shares purchased upon exercise of the Option
must be paid in full at or before closing by one or a combination of the following: 
 (a) Payment in cash;

 (b) Delivery of previously acquired Shares having a Fair Market Value equal to the exercise price; 

(c) Withholding of Shares issuable to Participant upon exercise of the Option, with a Fair Market Value on the date of
delivery equal to the aggregate purchase price of the Shares as to which the Option is exercised; or 
 (d)
Delivery (in a form approved by the Committee) of an irrevocable direction to a securities broker acceptable to the Committee: 

(i) To sell Shares subject to the Option and to deliver all or a part of the sales proceeds to Corporation in payment of
all or a part of the exercise price; or 
 (ii) To pledge Shares subject to the Option to the broker as security
for a loan and to deliver all or a part of the loan proceeds to Corporation in payment of all or a part of the exercise price. 

3.8 Previously Acquired Shares. Delivery of previously acquired Shares in full or partial payment for the exercise of’ the
Option will be subject to the following conditions: 
 (a) The Shares tendered must be in good delivery form;

 (b) The Fair Market Value of the Shares tendered, together with the amount of cash, if any, tendered must
equal or exceed the exercise price of the Option; 
 (c) Any Shares remaining after satisfying the payment for
the Option will be reissued in the same manner as the Shares tendered; and 
 (d) No fractional Shares will be
issued and cash will not be paid to the Participant for any fractional Share value not used to satisfy the Option exercise price. 
 4. Tax
Reimbursement 
 In the event any withholding or similar tax liability is imposed on Corporation in connection with or with
respect to any exercise of the Option, Participant agrees to pay to Corporation an amount sufficient to provide for such tax liability. 
 5.
Conditions Precedent 
 Corporation will use its best efforts to obtain approval of the Plan and this Option by any state or
federal agency or authority that Corporation determines has jurisdiction. If Corporation determines that any required approval cannot be obtained, this Option will terminate on notice to Participant to that effect. Without limiting the foregoing,
Corporation will not be required to issue any Shares upon exercise of the Option, or any portion thereof, until Corporation has taken any action required to comply with all applicable federal and state securities laws. 

 

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 6. Successorship 

Subject to restrictions on transferability set forth in the Plan, this Agreement will be binding upon and benefit the parties, their
successors and assigns. 
 7. Notices 

Any notices under this Option must be in writing and will be effective when actually delivered personally or, if mailed, when deposited as
registered or certified mail directed to the address of Corporation’s records or to such other address as a party may certify by notice to the other party. 

8. Arbitration 
 Any
dispute or claim that arises out of or that relates to this Agreement or to the interpretation, breach, or enforcement of this Agreement, must be resolved by mandatory arbitration in accordance with the then effective arbitration rules of
Arbitration Service of Portland, Inc., and any judgment upon the award rendered pursuant to such arbitration may be entered in any court having jurisdiction thereof. 

9. Attorney Fees 
 In the
event of any suit or action or arbitration proceeding to enforce or interpret any provision of this Agreement (or which is based on this Agreement), the prevailing party will be entitled to recover, in addition to other costs, reasonable attorney
fees in connection with such suit, action, arbitration, and in any appeal. The determination of who is the prevailing party and the amount of reasonable attorney fees to be paid to the prevailing party will be decided by the arbitrator or
arbitrators (with respect to attorney fees incurred prior to and during the arbitration proceedings) and by the court or courts, including any appellate courts, in which the matter is tried, heard, or decided, including the court which hears any
exceptions made to an arbitration award submitted to it for confirmation as a judgment (with respect to attorney fees incurred in such confirmation proceedings). 

 

			
	BARRETT BUSINESS SERVICES, INC.
		
	By	 	  

	Name	 	  

	Its	 	  

 

	
	  

	Participant

  

 - 5 -Form of Stock Option Award Agreement

 Exhibit 10.1 

THE DUN & BRADSTREET CORPORATION 

2009 STOCK INCENTIVE PLAN 

STOCK OPTION AWARD 

([DATE]) 

This STOCK OPTION AWARD (this “Award”) is being granted to «Fname» «Lname» (the
“Participant”) as of this              day of             , 2010 (the “Grant
Date”) by THE DUN & BRADSTREET CORPORATION (the “Company”) pursuant to THE DUN & BRADSTREET CORPORATION 2009 STOCK INCENTIVE PLAN (the “Plan”). Capitalized terms not defined in this
Award have the meanings ascribed to them in the Plan. 
 1. Grant of Stock Option. The Company
hereby grants to the Participant pursuant to the Plan the right and option (an “Option”) to purchase, subject to the terms of this Award and the Plan and subject to the vesting provisions of Section 3, all or any part of the
aggregate of «Options» shares of the Company’s common stock, par value $.01 per share (the “Shares”), at a purchase price per Share of «$ Grant Price», which is the Fair Market Value per Share on the
Grant Date (the “Option Price”). This Option is a non-qualified stock option and, accordingly, does not qualify as an incentive stock option under Section 422 of the Code. 

2. Term of Option. This Option shall expire on the tenth (10) anniversary of the Grant Date (the
“Expiration Date”) and must be exercised, if at all, on or before the earlier of the Expiration Date or the date on which this Option is earlier terminated in accordance with the provisions of Section 4 of this Award.

 3. Vesting. Except as otherwise provided herein, this Option shall vest in equal installments on the
first, second, third and fourth anniversaries of the Grant Date (i.e., 25% on each anniversary) and shall be exercisable only to the extent that it has vested. Except as provided in Section 4(b), this Option shall cease to vest upon the
Participant’s termination of active employment, and may be exercised after the Participant’s date of termination only as set forth below. 

4. Termination of Employment. 

(a) Vesting and Exercisability Upon Termination of Employment by Death or Disability. If the Participant’s
employment with the Company and its Affiliates terminates by reason of death or Disability on or after the first anniversary of the Grant Date, (i) the unvested portion of such Option shall immediately vest in full and (ii) such portion
may thereafter be exercised during the shorter of (A) the remaining term of the Option or (B) five years after the date of termination. 

(b) Vesting and Exercisability Upon Termination of Employment by Retirement. If the Participant’s employment
with the Company and its Affiliates terminates by reason of Retirement on or after the first anniversary of the Grant Date, the unvested portion of the Option shall continue to vest (to the extent that it is not yet vested) and may thereafter be
exercised during the shorter of (i) the remaining term of the Option or (ii) five years after the date of such termination of employment (the “Post- Retirement Exercise Period”);

 
provided, however, that if the Participant dies within the Post-Retirement Exercise Period, the unexercised portion of the Option may thereafter be exercised during the shorter of
(i) the remaining term of the Option or (ii) the period that is the longer of (A) five years after the date of such termination of employment or (B) one year after the date of death (the “Special Exercise
Period”), including any vesting that occurs during the Special Exercise Period. 
 (c) Effect of
Other Termination of Employment. If the Participant’s employment with the Company and its Affiliates terminates (i) for any reason (other than death, Disability or Retirement on or after the first anniversary of the Grant Date) or
(ii) for any reason prior to the first anniversary of the Grant Date, the unexercised portion of the Option may thereafter be exercised during the period ending 90 days after the date of such termination of employment, but only to the
extent such Option was vested at the time of such termination of employment. 
 5. Manner of Exercise.

 (a) Option Exercise and Issuance of Shares. Until the Company determines otherwise, Option exercises
and delivery of Shares will be administered by an independent third-party broker selected from time to time by the Company. 

(b) Limitations on Exercise. This Option may not be exercised unless such exercise is in compliance, to the
reasonable satisfaction of the Company, with all applicable laws including, without limitation, the Company’s insider trading policy. 

6. Tax Withholding. 

(a) Regardless of any action the Company or the Participant’s employer (the “Employer”) takes with
respect to any or all income tax, social insurance, payroll tax or other tax-related items related to the Participant’s participation in the Plan (“Tax-Related Items”), the Participant acknowledges that the ultimate liability
for all Tax-Related Items legally due by the Participant is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company and/or the Employer. The Company and/or the Employer (1) make no
representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option grant, including the grant, vesting or exercise of the Option, the subsequent sale of Shares acquired and the receipt of any
dividends; and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result.
Further, if the Participant has become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable event, the Company and/or Employer (or former employer, as applicable) may be required to withhold or
account for Tax-Related Items in more than one jurisdiction. 
 (b) Notwithstanding anything to the contrary
contained in this Award, it is a condition to the obligation of the Company to issue and deliver the Shares that the Participant shall pay or make adequate 

 
arrangements satisfactory to the Company and/or the Employer to satisfy all withholding of Tax-Related Items of the Company and/or the Employer. In this regard, the Participant authorizes the
Company and/or the Employer, or their respective agents, at their discretion, to withhold all applicable Tax-Related Items by one or a combination of the following: (1) withholding from a payment of cash or check from the Participant,
(2) withholding from the Participant’s wages or other cash compensation paid to the Participant by the Company and/or the Employer, (3) from proceeds of the sale of the Shares, either through a voluntary sale or through a mandatory
sale arranged by the Company (on the Participant’s behalf pursuant to this authorization), or (4) withholding from Shares to be issued upon exercise of the Option. 

(c) To avoid negative accounting treatment, the Company or the Employer may withhold or account for Tax-Related Items
(including withholding pursuant to applicable tax equalization policies of the Company or its Affiliates) by considering applicable minimum statutory withholding amounts or other applicable withholding rates. 

(d) Finally, the Participant shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or
the Employer may be required to withhold as a result of the Participant’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the Shares or the proceeds of the sale of
Shares if the Participant fails to comply with the Participant’s obligations in connection with the Tax-Related Items as described in this section. 

7. Nontransferability of Option. This Option shall not be transferable by the Participant otherwise than by
Beneficiary Designation, by will, by the laws of descent and distribution or pursuant to a domestic relations order. Except with respect to a transfer pursuant to a domestic relations order, during the lifetime of the Participant this Option may
only be exercised by the Participant. 
 8. Change in Control. If there is a Change in Control of the
Company, the unvested portion of the Option shall become fully vested and exercisable as of the date of the Change in Control provided the Participant remains in the continuous employ of the Company or its Affiliates from the Grant Date until
the date of the Change in Control. 
 9. Change in Capital Structure. The terms of this Option, including
the number of Shares subject to this Option, shall be adjusted in accordance with Section 13 of the Plan as the Committee determines is equitably required in the event the Company effects one or more stock dividends, stock split-ups,
subdivisions or consolidations of Shares or other similar changes in capitalization. 
 10. Privileges of
Stock Ownership. The Participant shall not have any of the rights of a shareholder of the Company with respect to any Shares until the Shares are issued to the Participant and no adjustment shall be made for cash distributions in respect of such
Shares for which the record date is prior to the date upon which such Participant or Permitted Transferee shall become the holder of record thereof. 

 11. Detrimental Conduct Agreement. The obligations of the Company
under this Award are subject to the Participant’s timely execution, delivery and compliance with the Detrimental Conduct Agreement in the form provided by the Company to the Participant. 

12. Entire Agreement. The Plan is incorporated herein by reference and a copy of the Plan can be requested from the
Corporate Secretary Department, The Dun & Bradstreet Corporation, 103 JFK Parkway, Short Hills, New Jersey 07078. The Plan and this Award constitute the entire agreement and understanding of the parties hereto with respect to the subject
matter hereof and supersede all prior understandings and agreements with respect to such subject matter. To the extent any provision of this Award is inconsistent or in conflict with any term or provision of the Plan, the Plan shall govern. Any
action taken or decision made by the Committee arising out of or in connection with the construction, administration, interpretation or effect of this Award shall be within its sole and absolute discretion and shall be final, conclusive and binding
on the Participant and all persons claiming under or through the Participant. 
 13. No Rights to Continued
Employment. Nothing contained in the Plan or this Award shall give the Participant any right to be retained in the employment of the Company or its Affiliates or affect the right of any such employer to terminate the Participant. The adoption
and maintenance of the Plan shall not constitute an inducement to, or condition of, the employment of any Participant. The Plan is a discretionary plan, and participation by the Participant is purely voluntary. Participation in the Plan with respect
to this Option award shall not entitle the Participant to participate with respect to any other award. Any payment or benefit paid to the Participant with respect to this Award shall not be considered to be part of the Participant’s
“salary,” and thus, shall not be taken into account for purposes of determining the Participant’s termination indemnity, severance pay, retirement or pension payment, or any other Participant benefits, except to the extent required
under applicable law. 
 14. Successors and Assigns. This Award shall be binding upon and inure to the
benefit of all successors and assigns of the Company and the Participant, including without limitation, the estate of the Participant and the executor, administrator or trustee of such estate or any receiver or trustee in bankruptcy or
representative of the Participant’s creditors. 
 15. Severability. The terms or conditions of this
Award shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein. 

16. No Advice Regarding Award. The Company is not providing any tax, legal or financial advice, nor is the Company
making any recommendation regarding the Participant’s participation in the Plan, or the acquisition or sale of underlying Shares. The Participant is advised to consult with his or her personal tax, legal, and financial advisors regarding the
decision to participate in the Plan and before taking any action related to the Plan. 
 17. Electronic
Delivery. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby 

 
consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party
designated by the Company. The Participant hereby agrees that all on-line acknowledgements shall have the same force and effect as a written signature. 

18. Other Requirements. The Company reserves the right to impose other requirements on the Participant’s
participation in the Plan, on the Option and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the
Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 

19. Governing Law. 

(a) The laws of the State of New Jersey, U.S.A., including tort claims, (without giving effect to its conflicts of law
principles) govern exclusively all matters arising out of or relating to this Award, including, without limitation, its validity, interpretation, construction, performance, and enforcement. 

(b) Any party bringing a legal action or proceeding against any other party arising out of or relating to this Award
shall bring the legal action or proceeding in the United States District Court for the District of New Jersey and any of the courts of the State of New Jersey, U.S.A. 

(c) Each of the Company and the Participant waives, to the fullest extent permitted by law, (a) any objection
which it may now or later have to the laying of venue of any legal action or proceeding arising out of or relating to this Award brought in any court of the State of New Jersey, U.S.A., or the United States District Court for the District of
New Jersey, including, without limitation, a motion to dismiss on the grounds of forum non conveniens or lack of subject matter jurisdiction; and (b) any claim that any action or proceeding brought in any such court has been brought in an
inconvenient forum. 
 (d) Each of the Company and the Participant submits to the exclusive jurisdiction
(both personal and subject matter) of (a) the United States District Court for the District of New Jersey and its appellate courts, and (b) any court of the State of New Jersey, U.S.A., and its appellate courts, for the purposes of all
legal actions and proceedings arising out of or relating to this Award. 
 IN WITNESS WHEREOF, this Stock Option Award has been
duly executed as of the date first written above. 
  

			
	THE DUN & BRADSTREET CORPORATION
		
	By:	 	 
		 	Leader, Winning Culture

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