Document:

exv10w1

EXHIBIT 10.1

ARBITRON INC. 2008 EQUITY COMPENSATION PLAN

NON-STATUTORY STOCK OPTION AGREEMENT

     THIS AGREEMENT evidences the grant by Arbitron Inc. (the “Company”) on                     , 201_
(the “Date of Grant”) to                                          (the “Optionee”) of an option to purchase shares of
the Company’s common stock.

     A. The Company has adopted the Arbitron Inc. 2008 Equity Compensation 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
grant stock options to employees of the Company and its Subsidiaries (as defined in the Plan).

     B. The Company desires to give the Optionee an inducement to acquire a proprietary interest in
the Company and an added incentive to advance the interests of the Company by granting to the
Optionee an option to purchase shares of common stock of the Company pursuant to the Plan.

     Accordingly, the parties agree as follows:

1. Grant of Option.

     The Company has granted to the Optionee the right, privilege and option (the “Option”) to
purchase [Shares] shares (the “Option Shares”) of the Company’s common stock, $0.50 par value (the
“Common Stock”), according to the terms and subject to the conditions hereinafter set forth and as
set forth in the Plan. The Option is not intended to be an incentive stock option within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

2. Option Exercise Price.

     The per share price to be paid by Optionee in the event of an exercise of the Option will be
$                    .

3. Duration of Option and Time of Exercise.

     3.1 Initial Period of Exercisability. Except as provided in Sections 3.2 and 3.3
hereof, the Option shall become exercisable with respect to one-third of the Option Shares on each
of the first, second and third anniversaries of the Date of Grant, assuming the Optionee’s
continued employment. The foregoing rights to exercise the Option will be cumulative with respect
to the Option Shares becoming exercisable on each such date, but in no event will the Option be
exercisable after, and the Option will become void and expire as to all unexercised Option Shares
at, 5:00 p.m. (Eastern Standard Time) on the tenth anniversary of the Date of Grant (the “Time of
Option Termination”).

     3.2 Termination of Employment.

     (a) Termination Due to Death or Disability. In the event the Optionee’s
employment with the Company and all Subsidiaries is terminated by reason of death or
Disability, the Option will become immediately exercisable in full and remain
exercisable until the Time of Option Termination.

 

 

     (b) Termination by Optionee as Retirement. In the event the Optionee’s
employment with the Company and all Subsidiaries ends through the Optionee’s Retirement, the
Option will become continue to vest as though the Optionee remained employed and will remain
exercisable as of and after such vesting until the earlier of the third anniversary of such
employment termination or the Time of Option Termination.

     (c) Termination by the Company without Cause or through Voluntary Resignation other
than on Retirement. In the event that the Optionee’s employment with the Company and
all Subsidiaries is ends by the Optionee’s termination without Cause or through with his or
her resignation other than on a Retirement, any unvested portions of the Option will expire
on employment termination and the vested portions of the Option will remain exercisable as
of and after such vesting until the earlier of the 90th day following such
resignation or the Time of Option Termination.

     (d) Termination by the Company for Cause. In the event that the Optionee’s
employment with the Company and all Subsidiaries is terminated by the Company for Cause, any
vested or unvested portions of the Option will immediately expire and be forfeited.

     (e) 280G; Release Requirement. Any acceleration, vesting, or extension under
this Section 3.2 is subject, as applicable, to the 280G provisions in Exhibit I hereto and
to compliance with any requirement that otherwise applies to the Optionee to provide a
release of claims.

     3.3 Change in Control.

     (a) Impact of Change in Control.

     (i) If a Change in Control Event of the Company occurs, the Committee, in its
sole discretion and without the consent of the Optionee, may determine that the
Optionee will receive, with respect to some or all of the Option Shares, as of the
effective date of any such Change in Control Event of the Company, cash in an amount
equal to the excess of the Fair Market Value (as defined in the Plan) of such Option
Shares as determined by taking into account such Change in Control Event of the
Company over the option exercise price per share of the Option.

     (ii) If a Change in Control Event occurs and the Option is not assumed or
replaced, it shall immediately become fully exercisable. If the Option is assumed
or replaced, exercisability fully accelerates if, within 24 months following the
closing of the Change in Control Event, the Optionee’s employment is terminated
without Cause or, if his or her employment or other individual agreement provides
for resignation for “Good Reason,” upon a resignation for Good Reason during the
same period.

     (b) Authority to Modify Change in Control Provisions. Prior to a Change in
Control Event, the Optionee will have no rights under this Section 3.3, and the Committee
will have the authority, in its sole discretion, to rescind, modify, or amend this
Section 3.3 without the consent of the Optionee.

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4. Manner of Option Exercise.

     4.1 Notice. This Option may be exercised by the Optionee in whole or in part from
time to time, subject to the conditions contained in the Plan and in this Agreement, by delivery,
in person, by facsimile or electronic transmission or through the mail, to the Company at its
principal executive office in Columbia, Maryland (Attention: Corporate Secretary), of a written
notice of exercise. Such notice must be in a form satisfactory to the Committee, must identify the
Option, must specify the number of Option Shares with respect to which the Option is being
exercised, and must be signed by the person or persons so exercising the Option. In the event that
the Option is being exercised, as provided by the Plan and Section 3.2 of this Agreement, by any
person or persons other than the Optionee, the notice must be accompanied by appropriate proof of
right of such person or persons to exercise the Option. If the Optionee retains the Option Shares
purchased, as soon as practicable after the effective exercise of the Option, the Optionee will be
recorded on the stock transfer books of the Company as the owner of the Option Shares purchased.

     4.2 Payment. At the time of exercise of the Option, the Optionee must pay the total
exercise price of the Option Shares to be purchased entirely in cash (including a check, bank draft
or money order, payable to the order of the Company), though a cashless exercise as described in
Section 5(f)(2) of the Plan, by such other method approved by the Committee, or by a combination
of such methods.

5. Rights and Restrictions of Optionee; Transferability.

     5.1 Employment. Nothing in this Agreement will interfere with or limit in any way the
right of the Company or any Subsidiary to terminate the employment of the Optionee at any time, nor
confer upon the Optionee any right to continue in the employ of the Company or any Subsidiary at
any particular position or rate of pay or for any particular period of time.

     5.2 Rights as a Stockholder; Effect on Running the Business. The Optionee will have
no rights as a stockholder unless and until all conditions to the effective exercise of the Option
(including, without limitation, the conditions set forth in Sections 4 and 6 of this Agreement)
have been satisfied and the Optionee has become the holder of record of such shares. No adjustment
will be made for dividends or distributions with respect to the Option Shares as to which there is
a record date preceding the date the Optionee becomes the holder of record of such Option Shares,
except as may otherwise be provided in the Plan or determined by the Committee in its sole
discretion. The Optionee understands and agrees that the existence of an Option will not affect in
any way the right or power of the Company or its stockholders to make or authorize any adjustments,
recapitalizations, reorganizations, or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issuance of bonds, debentures,
preferred or other stock, with preference ahead of or convertible into, or otherwise affecting the
Company’s common stock or the rights thereof, or the dissolution or liquidation of the Company, or
any sale or transfer of all or any part of its assets or business, or any other corporate act or
proceeding, whether or not of a similar character to those described above.

     5.3 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 Optionee in the Option prior to exercise may be assigned or transferred, or subjected to any
lien, during the lifetime of the Optionee, either voluntarily or involuntarily, directly or
indirectly, by operation of law or otherwise. The Optionee will, however, subject to applicable
laws be entitled to designate a beneficiary to receive the Option upon such Optionee’s death in the
manner provided by the Plan, and, in the event of the Optionee’s death, exercise of the Option (to
the extent permitted pursuant to Section 3.2(a) of this Agreement) may be made by the Optionee’s
designated beneficiary.

3

 

     5.4 Restrictions Regarding Employment.

     (a) The Optionee agrees that he or she will not take any Adverse Actions (as defined
below) against the Company or any Subsidiary at any time during the period that the Option
is or may yet become exercisable in whole or in part or at any time before one year
following the Optionee’s cessation of employment with the Company or any Subsidiary,
whichever is later (the “Restricted Period”). The Optionee acknowledges that damages that
may arise from a breach of this Section 5.4 may be impossible to ascertain or prove with
certainty. Notwithstanding anything in this Agreement or the Plan to the contrary, in the
event that the Company determines in its sole discretion that the Optionee has taken Adverse
Actions against the Company or any Subsidiary at any time during the Restricted Period, in
addition to other legal remedies that may be available, (i) the Company will be entitled to
an immediate injunction from a court of competent jurisdiction to end such Adverse Action,
without further proof of damage, (ii) the Committee will have the authority in its sole
discretion to terminate immediately all rights of the Optionee under the Plan and this
Agreement without notice of any kind, and (iii) the Committee will have the authority in its
sole discretion to rescind the exercise of all or any portion of the Option to the extent
that such exercise occurred within six months prior to the date the Optionee first commences
any such Adverse Actions and require the Optionee to disgorge any profits (however defined
by the Committee) realized by the Optionee relating to such exercised portion of the Option
or any Option Shares issued or issuable upon such exercise. Such disgorged profits paid to
the Company must be made in cash (including check, bank draft or money order) or, with the
Committee’s consent, shares of Common Stock with a Fair Market Value on the date of payment
equal to the amount of such payment. The Company will be entitled to withhold and deduct
from future wages of the Optionee (or from other amounts that may be due and owing to the
Optionee from the Company or a Subsidiary) or make other arrangements for the collection of
all amounts necessary to satisfy such payment obligation.

     (b) For purposes of this Agreement, an “Adverse Action” will mean any of the following:
(i) engaging in any commercial activity in competition with any part of the business of the
Company or any Subsidiary as conducted during the Restricted Period for which the Optionee
has or had access to trade secrets and/or confidential information; (ii) diverting or
attempting to divert from the Company or any Subsidiary any business of any kind, including,
without limitation, interference with any business relationships with suppliers, customers,
licensees, licensors, clients or contractors; (iii) participating in the ownership,
operation or control of, or being employed by, or connected in any manner with any person or
entity that solicits, offers or provides any services or products similar to those which the
Company or any Subsidiary offers to its customers or prospective customers, (iv) making, or
causing or attempting to cause any other person or entity to make, any statement, either
written or oral, or convey any information about the Company or any Subsidiary that is
disparaging or that in any way reflects negatively on the Company or any Subsidiary; or (v)
engaging in any other activity that is hostile, contrary or harmful to the interests of the
Company or any Subsidiary, including, without limitation, influencing or advising any person
who is employed by or in the service of the Company or any Subsidiary to leave such
employment or service to compete with the Company or any Subsidiary or to enter into the
employment or service of any actual or prospective competitor of the Company or any
Subsidiary, influencing or advising any competitor of the Company or any Subsidiary to
employ to otherwise engage the services of any person who is employed by or in the service
of the Company or any Subsidiary, or improperly disclosing or otherwise misusing any trade
secrets or confidential information regarding the Company or any Subsidiary.

4

 

     (c) Should any provision of this Section 5.4 of the Agreement be held invalid or
illegal, such illegality shall not invalidate the whole of this Section 5.4 of the
Agreement, but, rather, the Agreement shall be construed as if it did not contain the
illegal part or narrowed to permit its enforcement, and the rights and obligations of the
parties shall be construed and enforced accordingly. In furtherance of and not in limitation
of the foregoing, the Optionee expressly agrees that should the duration of or business
activities covered by, any provision of this Agreement be in excess of that which is valid
or enforceable under applicable law, then such provision shall be construed to cover only
that duration, extent or activities that may validly or enforceably be covered. The
Optionee acknowledges the uncertainty of the law in this respect and expressly stipulates
that this Agreement shall be construed in a manner that renders its provisions valid and
enforceable to the maximum extent (not exceeding its express terms) possible under
applicable law. This Section 5.4 of the Agreement does not replace and is in addition to
any other agreements the Optionee may have with the Company or any of its Subsidiaries on
the matters addressed herein.

6. 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 Optionee may not sell, assign, transfer or otherwise dispose of, any
Option Shares, unless (a) there is in effect with respect to the Option Shares 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 Option Shares, as may be deemed necessary or
advisable by the Company in order to comply with such securities law or other restrictions.

7. Withholding Taxes.

     The Company is entitled to (a) withhold and deduct from future wages of the Optionee (or from
other amounts that may be due and owing to the Optionee from the Company), or make other
arrangements for the collection of, all legally required amounts necessary to satisfy any federal
or provincial withholding tax requirements attributable to the Option, or (b) require the Optionee
promptly to remit the amount of such withholding to the Company before acting on the Optionee’s
notice of exercise of the Option. In the event that the Company is unable to withhold such
amounts, for whatever reason, the Optionee agrees to pay to the Company an amount equal to the
amount the Company would otherwise be required to withhold under federal, state or local law.

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

     (a) “Cause” will have the meaning set forth in any employment or other agreement or
policy applicable to the Optionee or, if no such agreement or policy exists, will mean
(i) dishonesty, fraud, misrepresentation, theft, embezzlement or injury or attempted injury,
in each case related to the Company or any Subsidiary, (ii) any unlawful or criminal
activity of a serious nature, (iii) any breach of duty, habitual neglect of duty or
unreasonable job performance, or (iv) any material breach of any employment, service,
confidentiality or noncompete agreement entered into with the Company or any Subsidiary.

5

 

     (b) “Change in Control Event” will have the meaning set forth in the Plan plus such
other event or transaction as the Board shall determine constitutes a Change in Control, or
such other meaning as may be adopted by the Committee from time to time in its sole
discretion.

     (c) “Disability” means the disability of the Optionee such as would entitle the
Optionee to receive disability income benefits pursuant to the long-term disability plan of
the Company or Subsidiary then covering the Optionee or, if no such plan exists or is
applicable to the Optionee, the permanent and total disability of the Optionee within the
meaning of Section 22(e)(3) of the Code.

     (d) “Retirement” means the termination (other than for Cause or by reason of death or
Disability) of an Optionee’s employment or other service on or after the date on which the
Optionee has attained the age of 55 and has completed 10 years of continuous service to the
Company or any Subsidiary (such period of service to be determined in accordance with the
retirement/pension plan or practice of the Company or Subsidiary then covering the Optionee,
provided that if the Optionee is not covered by any such plan or practice, the Optionee will
be deemed to be covered by the Company’s plan or practice for purposes of this
determination).

9. Subject to Plan.

     The Option and the Option Shares granted and issued pursuant to this Agreement have been
granted and issued under, and are subject to the terms of, the Plan. The terms of the Plan are
incorporated by reference in this Agreement in their entirety, and the Optionee, by execution of
this Agreement, acknowledges having received a copy of the Plan. The provisions of this Agreement
will be interpreted in a manner consistent with the Plan, and any ambiguities in this Agreement
will be interpreted by reference to the Plan. In the event that any provision of this Agreement is
inconsistent with the terms of the Plan, the terms of the Plan will prevail.

10. Miscellaneous.

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

     10.2 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.

     10.3 Entire Agreement. This Agreement and the Plan set forth the entire agreement and
understanding of the parties to this Agreement with respect to the grant and exercise of the Option
and the administration of the Plan and supersede all prior agreements, arrangements, plans and
understandings relating to the grant and exercise of the Option and the administration of the Plan.

     10.4 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.

6

 

     IN WITNESS WHEREOF, the Company has caused this option to be executed under its corporate seal
by its duly authorized officer. This option shall take effect as a sealed instrument.

	 	 	 	 	 
	 	ARBITRON INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

7

 

	 	 	 	 	 

OPTIONEE’S ACCEPTANCE

     The undersigned hereby accepts the foregoing option and agrees to the terms and conditions
thereof. The undersigned hereby acknowledges receipt of a copy of the Plan.

	 	 	 	 	 
	 	OPTIONEE:

 	 
	 	 	 
	 	 	 	 
	 	 	 	 
	 

8exv10w2

EXHIBIT 10.2

Grant No.                     

	 	 	 

	 

	 	o Participant’s Copy

o Company’s Copy

Arbitron Inc.

2008 Equity Compensation Plan

Performance-Based Restricted Stock Unit Agreement

To                     :

     Arbitron Inc. (the “Company”) has granted you (the “Grant”) restricted stock units (“RSUs”) as
set forth on Exhibit A to this Agreement (the “RSUs”) under its 2008 Equity Compensation Plan (the
“Plan”), subject to the Vesting Schedule and requirements specified on Exhibit A.

     The Grant is subject in all respects to the applicable provisions of the Plan. This Agreement
does not cover all of the rules that apply to the Grant under the Plan, and the Plan defines any
capitalized terms in this Agreement that this Agreement does not define.

     In addition to the Plan’s terms and restrictions, the following terms and restrictions apply:

	 	 	 

	Vesting Schedule

	 	The Grant becomes nonforfeitable (“Vested”) as to some or all of the RSUs only as provided on Exhibit A.
	 
	 	 
	Distribution Dates

	 	You will receive a distribution of shares (the “Shares”) of Company common stock (“Common Stock”) equivalent
to your Vested RSUs as soon as practicable following the dates on which you become Vested (the “Distribution
Dates”) as provided in Exhibit A, subject to any overriding provisions in the Plan.
	 
	 	 
	Limited Status

	 	You understand and agree that the Company will not consider you a shareholder for any purpose with respect
to the Shares, unless and until the Shares have been issued to you on the Distribution Date(s). You will,
however, receive dividend equivalents (“Dividend Equivalent Rights”) with respect to the Vested RSUs,
measured using the Shares they represent, with the amounts convertible into full or fractional additional
Vested RSUs based on dividing the Dividend Equivalent Rights by the Fair Market Value (as defined in the
Plan) as of the date of dividend distribution and holding the resulting additional Vested RSUs for
distribution as provided for the RSUs with respect to which they were issued.
	 
	 	 
	Voting

	 	RSUs cannot be voted. You may not vote the Shares unless and until the Shares are distributed to you.
	 
	 	 
	Transfer 

Restrictions

	 	You may not sell, assign, pledge, encumber, or otherwise transfer any
interest (“Transfer”) in the Shares until the Shares are distributed to you.

 

 

	 	 	 

	and 

Forfeiture

	 	Any attempted Transfer that precedes the Distribution Date for such
Shares is invalid.
	 
	 	 
	 

	 	Unless the Administrator determines otherwise at any time or Exhibit A
provides otherwise, if your service with the Company terminates for any
reason before all of your RSUs are Vested, then you will forfeit such
unvested RSUs (and the Shares to which they relate) to the extent that such
RSUs do not otherwise vest as a result of the termination. The forfeited
RSUs will then immediately revert to the Company. You will receive no
payment for RSUs that you forfeit.
	 
	 	 
	 

	 	Your receipt of and retaining the RSUs and any Common Stock issued
thereunder are also subject to your compliance with the restrictive
covenants set out in Exhibit B to this award.
	 
	 	 
	Additional 

Conditions

	 	The Company may postpone issuing and delivering any Shares for so
long as the Company determines to be advisable to satisfy the following:
	to Receipt
	 	 

	 	 	 

	 

	 	its completing or amending any securities registration or qualification of the Shares or its or your
satisfying any exemption from registration under any Federal or state law, rule, or regulation;
	 
	 	 
	 

	 	its receiving proof it considers satisfactory that a person or entity seeking to receive the Shares after
your death is entitled to do so;
	 
	 	 
	 

	 	your complying with any requests for representations under the Grant and the Plan; and
	 
	 	 
	 

	 	its or your complying with any federal, state, or local tax withholding obligations.

	 	 	 

	Taxes and
Withholding

	 	The RSUs provide tax deferral, meaning that they are not taxable to you
until you actually receive Shares on or around each Distribution Date. You will then owe taxes at ordinary income
tax rates as of each Distribution Date at the Shares’ value.
	 
	 	 
	 

	 	The Company is required to withhold (in cash from salary or other amounts
owed you) the applicable percentage of the value of the Shares on the
Distribution Date, regardless of whether you sell them. If the Company does
not choose to do so, you agree to arrange for payment of the withholding
taxes and/or confirm that the Company is arranging for appropriate
withholding.
	 
	 	 
	Additional 

Representations 

from You

	 	If you receive Shares at a time when the Company does not have a
current registration statement (generally on Form S-8) under the Act that
covers issuances of Shares to you, you must comply with the following before the Company will release the
Shares to you. You must:

 - 2 - 

 

	 	 	 

	 

	 	represent to the Company, in a manner satisfactory to the Company’s counsel, that you are acquiring the
Shares for your own account and not with a view to reselling or distributing the Shares; and
	 
	 	 
	 

	 	agree that you will not sell, transfer, or otherwise dispose of the Shares unless:

	 	 	 

	 

	 	a registration statement under the Act is effective at the time of disposition with respect to
the Shares you propose to sell, transfer, or otherwise dispose of; or
	 
	 	 
	 

	 	the Company has received an opinion of counsel or other information and representations it
considers satisfactory to the effect that, because of Rule 144 under the Act or otherwise, no registration
under the Act is required.

	 	 	 

	Additional 

Restriction

	 	You will not receive the Shares if issuing the Shares would violate any
applicable federal or state securities laws or other laws or regulations.
	 
	 	 
	No Effect on 

Employment 

or Other 

Relationship

	 	Nothing in this Agreement restricts the Company’s rights or those of any
of its affiliates to terminate your employment or other relationship at any
time, with or without cause. The termination of your relationship, whether
by the Company or any of its affiliates or otherwise, and regardless of the reason for such termination, has
the consequences provided for under the Plan and any applicable employment or severance agreement or plan.
	 
	 	 
	No Effect on 

Running Business

	 	You understand and agree that the existence of the RSU will not affect in
any way the right or power of the Company or its stockholders to make or authorize any adjustments,
recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or
any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or other stock,
with preference ahead of or convertible into, or otherwise affecting the Company’s common stock or the rights
thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether or not of a similar character to those
described above.
	 
	 	 
	Section 409A

	 	This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code and
must be construed consistently with that section. Notwithstanding anything in the Plan or this Agreement to
the contrary, if the Vested portion is increased in connection with your “separation from service” within the
meaning of Section 409A, as determined by the Company), other than due to death, and if (x) you are then a
“specified employee” within the meaning of Section 409A at the time of such separation from service (as
determined by the Company, by which determination you agree you are bound) and

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	 	(y) the payment under such accelerated RSUs will result in the imposition of additional tax under
Section 409A if paid to you within the six month period following your
separation from service, then the payment under such accelerated RSUs will
not be made until the earlier of (i) the date six months and one day
following the date of your separation from service or (ii) the
10th day after your date of death, and will be paid within 10
days thereafter. Neither the Company nor you shall have the right to
accelerate or defer the delivery of any such payments or benefits except to
the extent specifically permitted or required by Section 409A. In any
event, the Company makes no representations or warranty and shall have no
liability to you or any other person, if any provisions of or payments under
this Agreement are determined to constitute deferred compensation subject to
Code Section 409A but not to satisfy the conditions of that section.
	 
	 	 
	Unsecured 

Creditor

	 	This Agreement creates a contractual obligation on the part of the
Company to make payment under the RSUs credited to your account at the time provided
for in this Agreement. Neither you nor any other party claiming an interest in deferred
compensation hereunder shall have any interest whatsoever in any specific assets of the
Company. Your right to receive payments hereunder is that of an unsecured general creditor
of Company.
	 
	 	 
	Additional 

Restrictions

	 	Any acceleration, vesting, or extension under this Grant is subject, as
applicable, to the 280G provisions in Exhibit C hereto and to compliance with
any requirement that otherwise applies to you to provide a release of claims.
	 
	 	 
	Governing Law

	 	The laws of the State of Delaware will govern all matters relating to this
Agreement, without regard to the principles of conflict of laws.
	 
	 	 
	Notices

	 	Any notice you give to the Company must follow the procedures then in effect. If no
other procedures apply, you must send your notice in writing by hand or by mail to the
office of the Company’s Secretary. If mailed, you should address it to the Company’s
Secretary at the Company’s then corporate headquarters, unless the Company directs
participants to send notices to another corporate department or to a third party
administrator or specifies another method of transmitting notice. The Company and the
Administrator will address any notices to you at your office or home address as reflected on
the Company’s personnel or other business records. You and the Company may change the
address for notice by like notice to the other, and the Company can also change the address
for notice by general announcements to participants.

 - 4 - 

 

	 	 	 

	Plan Governs

	 	Wherever a conflict may arise between the terms of this Agreement and the terms
of the Plan, the terms of the Plan will control.

	 	 	 	 	 
	 	Arbitron Inc.

 	 
	 Date:                       	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

 - 5 - 

 

ACKNOWLEDGMENT

     I acknowledge I received a copy of the Plan. I represent that I have read and am familiar
with the Plan’s terms. I accept the Grant subject to all of the terms and provisions of this
Agreement and of the Plan under which the Grant is made, as the Plan may be amended in accordance
with its terms. I agree to accept as binding, conclusive, and final all decisions or
interpretations of the Administrator concerning any questions arising under the Plan with respect
to the Grant.

	 	 	 	 	 	 	 

	Date:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 

     No one may sell, transfer, or distribute the securities covered by the Grant without an
effective registration statement relating thereto or an opinion of counsel satisfactory to the
Company or other information and representations satisfactory to the Company that such registration
is not required.

-6-

 

Grant No.                     

Arbitron Inc.

2008 Equity Compensation Plan

Performance-Based Restricted Stock Unit

Exhibit A

Recipient Information:

Name:                                                                       

Signature: X                                                             

Grant Information:

	 	 	 	 	 	 	 

	RSUs:

	 	 	 	Date of Grant:	 	 
	 

	 	 
	 	 	 	 

	 	 	 	 	 	 	 

	Vesting Schedule	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Performance Condition
	 	 	 	The Grant will expire without Vesting if the one-year
performance goal (the “Performance Goal”) is not satisfied by the first
anniversary of the Date of Grant. The Compensation Committee will have the
full and sole discretion to determine whether the Company has met the
Performance Goal and how each of its components is calculated. The Performance
Goal is specified on Schedule I to this Exhibit A.
	 
	 	 	 	 	 	 
	 

	 	Service Condition
	 	 	 	If the Performance Goal is met, the Grant
will become Vested as to one-fourth of the RSUs on
each of the four one year anniversaries of the
Date of Grant (each a “Vesting Date”), assuming
you remain a service provider to the Company
through those dates.
	 
	 	 	 	 	 	 
	Grant Expiration Rules	 	Except as otherwise provided in an employment,
retention, or other individual agreement covering
you, you will forfeit any unvested portions of the
Grant immediately when you cease to be employed by
(or a member of the Board of) the Company for
reasons other than death or Disability or
Retirement. If your employment ends for death or
Disability, you will become fully Vested at that
date. If your employment ends on your Retirement,
you will continue to Vest in the Grant as though
you had remained employed and subject to
achievement of the Performance Goal.
	 
	 	 	 	 	 	 
	 

	 	Definitions 
	 	 	 	“Cause” will have the meaning set forth in any employment or other agreement or
policy applicable to you or, if no

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	 	 	 	 	 	such agreement or policy exists, will mean (i) dishonesty,
fraud, misrepresentation, theft, embezzlement or injury or
attempted injury, in each case related to the Company or any
Subsidiary, (ii) any unlawful or criminal activity of a
serious nature, (iii) any breach of duty, habitual neglect of
duty or unreasonable job performance, or (iv) any material
breach of any employment, service, confidentiality or
noncompete agreement entered into with the Company or any
Subsidiary.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	“Disability” means your disability such as would entitle you
to receive disability income benefits pursuant to the
long-term disability plan of the Company or Subsidiary then
covering you or, if no such plan exists or is applicable to
you, your permanent and total disability within the meaning
of Section 22(e)(3) of the Code; provided, however, that the
disability must also comply with the requirements of Treas.
Reg. § 1.409A-3(i)(4).
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	“Retirement” means the termination (other than for Cause or
by reason of death or Disability) of your employment or other
service on or after the date on which you have attained the
age of 55 and have completed 10 years of continuous service
to the Company or any Subsidiary (such period of service to
be determined in accordance with the retirement/pension plan
or practice of the Company or Subsidiary then covering you,
provided that if you are not covered by any such plan or
practice, you will be deemed to be covered by the Company’s
plan or practice for purposes of this determination).
	 
	 	 	 	 	 	 
	 	 	Change in Control	 	If a Change in Control Event (as defined in the Plan) occurs before the
final Distribution Date and the Change in Control Event also would be an event
described in Treas. Reg. Section 1.409A-3(i)(5), any unvested RSUs you then hold will
Vest as provided in this paragraph. A Change in Control Event that does not comport
with that regulation will not cause full Vesting unless otherwise permitted by Section
409A. Subject to the foregoing rules, if a Change in Control Event occurs and the RSU
is not assumed or replaced, it shall immediately become fully Vested. Also subject to
the foregoing rules, if the RSU is assumed or replaced, Vesting fully accelerates if,
within 24 months following the closing of the Change in Control Event, the Company
terminates your employment without Cause or, if your employment or other individual
agreement provides for resignation for “Good Reason,” you resign for Good Reason during
the same period.
	 
	 	 	 	 	 	 
	 	 	 	 	If a Change in Control Event occurs before the first anniversary of
the Date of Grant, the Performance Goal will be deemed to have been
met.

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	Distribution Dates	 	The Distribution Date for Shares will be the date the Company selects within 90
days following each applicable Vesting Date.

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