Document:

exv10w19

 

Exhibit 10.19

FORM OF DEFERRED STOCK UNIT AGREEMENT

(Non-Employee Director Post-2005 Stock-for-Fees Deferred Stock Unit)

     THIS AGREEMENT is entered into and effective as of ___31, 200_, by and between Arbitron
Inc. (the “Company”) and                                          (the “Participant”).

     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
award deferred stock units to non-employee directors of the Company.

     B. Pursuant to the Company’s program permitting directors to receive deferred stock units
under the Plan in lieu of director’s fees, the Company hereby awards to the Participant on
                    , stock units representing shares of the Company’s common stock, and payable following
termination of the Participant’s Board service as further described herein.

     Accordingly, the parties agree as follows:

1. Deferred Stock Units.

     The Company hereby awards the Participant                      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, as set forth in the Plan, and the
policies and procedures concerning the award of deferred stock units set forth in the Arbitron,
Inc. Director Deferred Compensation Plan (the “Policy”). The number of deferred stock units
subject to this Agreement may increase based on Dividend Equivalent credits made pursuant to
Section 4. 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, the Plan and the Policy. Payment of the Deferred Stock Units shall
be made as described below in Section 2.

2. Vesting and Payment of Deferred Stock Units.

     2.1 Vesting. The Deferred Stock Units are fully vested.

     2.2 Termination of Service. Payment of the Deferred Stock Units shall not be made
until following the Participant’s termination of service as a director of the Company. If the
Participant’s service as a director of the Company ceases for any reason, payment shall be made as
previously elected by the Participant as follows:

	 	o	 	Within 30 days after the end of the calendar quarter in which the
Participant has ceased to serve as a director of the Company, as a lump sum payment in
shares of common stock of the Company (“Common Stock”) and with any fractional shares
to be distributed in cash.

	 	o	 	 Commencing as of January 1 of the calendar year following the year in which
the Participant has ceased to serve as a director of the Company (or as soon as
reasonably practicable thereafter), in ___annual installments (not to exceed 5)
of shares of Common Stock. The amount of shares paid in each installment shall be
determined by dividing the Participant’s total remaining deferred stock units by the
remaining number of installments to be paid, such that the divisor shall be reduced by
one in each subsequent year. Fractional shares shall be

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	 	 	 	rounded down to the nearest whole number, except that in the final year in which an
installment is to be paid, any fractional shares shall be distributed in cash.

(The Company has checked the box that applies to the Participant under this Agreement.)

3. Rights and Restrictions of Participant; Transferability.

     3.1 Rights as a Stockholder. The Participant will have no rights as a stockholder
unless and until the Participant has become the holder of record of shares of Common Stock
following payment in Common Stock after terminating service as a director of the Company.
Notwithstanding the preceding, the Participant 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 end of the quarter as of which
the stock units are credited to the Participant.

     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 Participant to payment of the Deferred Stock Units may be assigned or transferred, or subjected
to any lien, during the lifetime of the Participant, either voluntarily or involuntarily, directly
or indirectly, by operation of law or otherwise. The Participant will, however, be entitled to
designate a beneficiary to receive the payment of the Deferred Stock Units after such Participant’s
death in the manner provided by the Policy.

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 Participant 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 Participant
with 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. Upon payment of the cash amount just
described, notwithstanding anything to the contrary in this agreement, the Plan or the Policy, this
agreement shall expire, and no further payment shall be due to the Participant 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

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 order to prevent dilution or enlargement of the rights of the Participant, 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.

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

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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 a Participant, based on the
number of Deferred Stock Units subject to 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) and
shall be added to the number of Deferred Stock Units subject to this Agreement.

8. Subject to Plan.

     The Deferred Stock Units issued under this Agreement have been issued subject to the terms of
the Plan, as supplemented by the Policy. The terms of the Plan and the Policy are incorporated by
reference in this Agreement in their entirety, and the Participant, by execution of this Agreement,
acknowledges having received a copy of the Plan and the Policy. The provisions of this Agreement
will be interpreted as to be consistent with the Plan and the Policy, 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 Director 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 Participant at the time provided for hereinabove. Neither the Participant nor any
other party claiming an interest in deferred compensation hereunder shall have any interest
whatsoever in any specific assets of Company. The Participant’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 Participant and
any beneficiary of the Participant 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 Participant pursuant to a beneficiary designation in accordance with the Policy.

     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 rule or principle that might otherwise refer
construction or interpretation of this Agreement to the substantive laws of another jurisdiction.

     9.5 Entire Agreement. This Agreement, the Plan, and the Policy 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
and the Policy.

     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.

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

	 	 	 	 	 	 	 
	 	 	ARBITRON INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	Its	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	By execution of this Agreement,
the Participant acknowledges having
received a copy of the Plan and the Policy.	 	PARTICIPANT	 	 
	 	 	 
	 

	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 

	 	 	 	(Name and Address)	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Social Security
Number: 	 	 
	 

	 	 	 	 	 

5<PAGE>
                                                                   EXHIBIT 10.24

                         HARVEST NATURAL RESOURCES, INC.

                       2001 LONG TERM STOCK INCENTIVE PLAN

                            EMPLOYEE OPTION AGREEMENT

         Agreement made at Houston, Texas, USA, as of September 15, 2005, by and
between HARVEST NATURAL RESOURCES, INC. (the "Company") and JAMES A. EDMISTON
III (the "Employee").

         It is hereby agreed as follows:

         1. Grant of Option; Consideration. The Company hereby confirms the
grant, pursuant to Section 5 of the Company's 2001 Stock Option Plan (the
"Plan"), to the Employee on September 15, 2005, of a nonqualified stock option
to purchase up to 85,000 shares of the Company's Common Stock, par value $0.01
per share (the "Shares"), at an exercise price of $10.80 per share (the
"Option"). The Option granted hereunder is not intended to constitute an
incentive stock option within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended. The terms of the Option are subject to adjustment in
certain circumstances, as provided in the Plan.

         The Employee shall be required to pay no consideration for the grant of
the Option, except for his agreement to serve as an employee of the Company or
any subsidiary and other agreements set forth herein.

         2. Incorporation of Plan by Reference. The Option has been granted to
the Employee under the Plan, a copy of which is attached hereto. All of the
terms, conditions, and other provisions of the Plan are hereby incorporated by
reference into this Employee Stock Option Agreement (the "Agreement").
Capitalized terms used in this Agreement but not defined herein shall have the
same meanings as in the Plan. If there is any conflict between the provisions of
this Agreement and the provisions of the Plan, the provisions of the Plan shall
govern.

         3. Vesting. Subject to all of the terms and conditions of the Plan and
this Agreement, including acceleration of vesting in the event of a Change of
Control or Total Disability, the Employee may purchase up to:

         (i)      one-third of the Shares subject to the Option upon exercise of
                  the Option after the later of September 14, 2006, and the
                  Stock Value Date;

         (ii)     an additional one-third of the Shares subject to the Option
                  upon exercise of the Option after the later of September 14,
                  2007, and the Stock Value Date; and

         (iii)    the remaining one-third of the Shares subject to the Option
                  upon exercise of the Option after the later of September 14,
                  2008, and the Stock Value Date.

<PAGE>

         The "Stock Value Date" is the first day after September 15, 2005, on
which the average of the Closing Price of the Stock for ten (10) consecutive
trading days equals or exceeds $20.00 per share. The "Closing Price of the
Stock" means the final trading price per share of the Stock as reported in The
Wall Street Journal listing of consolidation trading for New York Stock Exchange
issues.

         4. Term and Termination of Service. This Option, to the extent it has
not been previously exercised, shall expire at 5:00 p.m. (Central Time) on
September 14, 2015 or, if earlier, at 5:00 p.m. (Central Time):

         (i)      on the date 3 months after the Employee ceases to be a
                  Non-Employee Director, Employee or Consultant of the Company
                  or any Subsidiary for any reason other than a Change of
                  Control, Total Disability or death;

         (ii)     on the date 12 months after the Employee ceases to be a
                  Non-Employee Director, Employee or Consultant of the Company
                  or any Subsidiary by reason of Total Disability;

         (iii)    on the date 12 months after the date of the Employee's death
                  who dies while in the service or employ of the Company or a
                  Subsidiary or within 3 months after the termination of such
                  employment or service; or

         (iv)     on the date 12 months after the Employee's termination of
                  employment or service if such employment or service is
                  terminated within 730 days after the effective date of a
                  Change of Control.

         Except in the case of a termination subject to (ii) above, the Option
         shall be exercisable after the date of such termination of Employee's
         service or employment only to the extent the Option was exercisable at
         the date of such termination. In the case of termination subject to
         (ii) above, any Options that are not exercisable shall become
         exercisable effective as of the termination date.

         The term and vesting schedule of the Option is also subject to Sections
         4(a)(2), (3) and (4) of an Employment Agreement dated September 15,
         2005 between the Company and the Employee.

         5. Option Exercise. The Option may be exercised in whole or in part (to
the extent then exercisable) by contacting the Company's designated agent for
processing Option exercises. An Option exercise must be accompanied by payment
in full of the exercise price (i) in cash, (ii) by means of a broker-assisted
cashless exercise to the extent then permitted under rules and regulations
adopted by the Committee, or (iii) in such other manner as may then be permitted
under rules and regulations adopted by the Committee. As soon as practicable
after the valid exercise of the Option, the Company shall deliver to the
Employee one or more stock certificates representing the Shares so purchased,
with any requisite legend affixed.

                                      -2-

<PAGE>
         6. Non-Transferability. No right or interest of the Employee in the
Option shall be pledged, encumbered, or hypothecated to or in favor of any third
party or shall be subject to any lien, obligation, or liability of the Employee
to any third party. The Option shall not be transferable to any third party by
the Employee otherwise than (i) by will or the laws of descent and distribution,
(ii) pursuant to a qualified domestic relations order as defined under the Code
or Title I of the Employee Retirement Income Security Act of 1974 to an
immediate family member, or (iii) to the extent authorized by the Committee, to
an immediate family member of the Employee who acquires the options from the
Employee through a gift.

         7. Compliance with Laws and Regulations. The obligation of the Company
to deliver Shares upon the exercise of this Option is conditioned upon
compliance by the Employee and by the Company with all applicable laws and
regulations, including regulations of federal and state agencies. If requested
by the Company, the Employee shall provide to the Company, as a condition to the
valid exercise of this Option and the delivery of any certificates representing
Shares, appropriate evidence, satisfactory in form and substance to the Company,
that he is acquiring the Shares for investment and not with a view to the
distribution of the Shares or any interest in the Shares, and a representation
to the effect that the Employee shall make no sale or other disposition of the
Shares unless (i) the Company shall have received an opinion of counsel
satisfactory to it in form and substance that such sale or other disposition may
be made without compliance with registration or other applicable requirements of
federal and state laws and regulations, and (ii) all steps required to comply
with such laws and regulations in connection with the sale or other disposition
of the Shares have been taken and all necessary approvals have been received.
The certificates representing the Shares may bear an appropriate legend giving
notice of the foregoing restrictions on transfer of the Shares, and any other
restrictive legend deemed necessary or appropriate by the Committee.

         8. Tax Withholding. Whenever Shares are to be delivered upon exercise
of the Option, the Company shall be entitled to require as a condition of
delivery or payment that the Employee remit or, in appropriate cases, agree to
remit when due an amount sufficient to satisfy all federal, state, and local
withholding tax requirements relating thereto. The Employee will be entitled to
elect to have the Company withhold from the Shares to be delivered upon the
exercise of the Option, a sufficient number of such shares to satisfy the
Employee's minimum statutory federal, state, and local withholding tax
obligations relating to the Option exercise to the extent then permitted under
rules and regulations adopted by the Committee and in effect at the time of the
exercise of the Option. In such case, the Shares withheld or the shares
surrendered will be valued at the Fair Market Value at the time of the exercise
of the Option.

         9. Employee Bound by Plan. The Employee hereby acknowledges receipt of
the attached copy of the Plan and agrees to be bound by all the terms and
provisions thereof (as presently in effect or hereafter amended), and by all
decisions and determinations of the Committee.

         10. Binding Effect: Integration: No Other Rights Created. This
Agreement shall be binding upon the heirs, executors, administrators and
successors of the parties. This Agreement constitutes the entire agreement
between the parties with respect to the Option, and supersedes any prior
agreements or documents with respect to the Option. No amendment, alteration,

                                      -3-
<PAGE>
suspension, discontinuation or termination of this Agreement which may impose
any additional obligation upon the Company or impair the rights of the Employee
with respect to the Option shall be valid unless in each instance such
amendment, alteration, suspension, discontinuation or termination is expressed
in a written instrument duly executed in the name and on behalf of the Company
and by the Employee. Neither this Agreement nor the grant of the Option shall
constitute an employment agreement, nor shall either confer upon the Employee
any right with respect to his continued status with the Company.

                                          HARVEST NATURAL RESOURCES, INC.

                                          BY:
                                              ----------------------------------
                                                   STEPHEN D. CHESEBRO'
                                                   CHAIRMAN OF THE BOARD

                                          EMPLOYEE:

                                          --------------------------------------
                                          James A. Edmiston III

                                          DATE:
                                                --------------------------------

Attachment (copy of the Plan)

                                      -4-

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