Document:

exv10w3

EXHIBIT 10.3

Grant No.                                         

	 	 	 

	 

	 	o      Kerr’s Copy
	 
	 	 
	 

	 	o      Company’s Copy

Arbitron Inc.

2008 Equity Compensation Plan

Performance-Based Deferred Stock Unit Agreement

To William T. Kerr:

     Arbitron Inc. (the “Company”) has granted you (the “Grant”) deferred stock units as set forth
on Exhibit A to this Agreement (the “DSUs”) 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 DSUs only as provided on Exhibit A.
	 
	 	 
	Distribution

	 	You will receive a distribution of shares (the “Shares”)
of Company common stock (“Common Stock”) equivalent to
your DSUs as follows:

	 	 	 

	 

	 	One-quarter of the initial DSUs within 45 days following each
anniversary of the Date of Grant, provided that (i) no DSUs will be
paid before they vest, (ii) no DSUs will be paid until 30 days after
you have a separation from service, except as the Plan may otherwise
require, and (iii) all DSUs will be distributed within 30 days after
and if your employment ends as a result of your death or Disability
(as the latter is defined in your employment agreement with the
Company dated February 11, 2010 (the “Employment Agreement”),
provided that the Disability will only accelerate the payment
schedule if it also satisfies the definition of Disability under
Section 409A of the Code.
	 
	 	 
	 

	 	Each date on which you receive a distribution of Shares pursuant to
the foregoing is referred to as a “Distribution Date.”

	 	 	 

	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 DSUs, measured using the Shares they represent,
with the amounts convertible into full or fractional additional

 

	 	 	 

	 

	 	Vested DSUs based on dividing
the dividends by the Fair Market Value
(as defined in the Plan) as of the date of dividend distribution and holding
the resulting additional Vested DSUs for distribution as provided for the
DSUs with respect to which they were issued.

	 	 	 

	Voting

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

	 	You may not sell, assign, pledge, encumber, or otherwise transfer any
interest (“Transfer”) in the Shares until the Shares are distributed to you.
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 DSUs are Vested, then you will forfeit such
unvested DSUs (and the Shares to which they relate) to the extent that such
DSUs do not otherwise vest as a result of the termination. The forfeited
DSUs will then immediately revert to the Company. You will receive no
payment for DSUs that you forfeit.
	 
	 	 
	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 DSUs provide tax deferral, meaning that they are not taxable to you
for income tax purposes 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. You will be subject to Social Security and

- 2 -

 

	 	 	 

	 

	 	Medicare taxation
as you vest in the DSUs, and the preceding provisions will apply to those
taxes as though the vesting date were a Distribution Date.

	 	 	 

	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:

	 	 	 

	 

	 	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 DSU 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.

- 3 -

 

	 	 	 

	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 (y) the payment under
such accelerated DSUs 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 DSUs 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 DSUs 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.
	 
	 	 
	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:                                                             	

 	 
	 	William T. Kerr 	 
	 	 	 
	 	 	 
	 

     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 Deferred Stock Unit

Exhibit A

Recipient Information:

	 	 	 	 	 	 	 	 	 	 	 	 	 

	Name:	 	 	 	William T. Kerr	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signature: X	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Grant Information:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DSUs:

	 	 	 	 	 	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 is
Vested as to one-fourth of the DSUs on each of the
four one year anniversaries of the Date of Grant
(each a “Vesting Date”), assuming you remain an
individual service provider to the Company through
those dates.

	 	 	 

	Special Acceleration

	 	If your employment with the Company and all
Subsidiaries ends by death or Disability, the DSUs
will vest in full.
	 
	 	 
	 

	 	If your employment ends on a termination without Cause or Retirement
(each as determined under Section 6(b) of the Employment Agreement
and as defined in Section 6(e) thereof) and the Performance Goal is
met, any unvested portions of the DSUs will be treated as fully
vested and will continue to be paid out according to the schedule in
Distributions in the Grant agreement.

- 7 -

 

	 	 	 

	 

	 	If your employment ends with your resignation other than under a
Retirement, you will immediately forfeit any unvested DSUs and the
Shares to which they relate and any vested DSUs will continue
to be paid out according to the schedule in Distributions in the
Grant Agreement.
	 
	 	 
	 

	 	If your employment ends on a termination by the Company for Cause,
you will immediately forfeit all DSUs and the Shares to which they
relate.
	 
	 	 
	 

	 	Any acceleration of vesting under this Employment Termination section
is subject, as applicable, to Section 4(c)(iii)(e) of the Employment
Agreement and to the release requirement of Section 6(d) of the
Employment Agreement.
	 
	 	 
	Change in Control

	 	If a Change in Control Event (as defined in the Plan)
occurs before the first anniversary of the Date of
Grant, the Performance Goal will be deemed to have been met.
	 
	 	 
	 

	 	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 DSUs
you then hold will fully Vest. A Change in Control
Event that does not comport with that regulation will
not cause full Vesting unless otherwise permitted by
Section 409A. The payment will be in cash (unless the
Board determines otherwise) equal to the value per share
of the consideration received in the Change in Control
Event multiplied by the number of DSUs, at which point
the DSUs will expire without further obligation to you.
The Board will have the authority to value any
consideration received in the Change in Control Event to
the extent neither cash nor readily marketable
securities.

- 8 -exv10w4

EXHIBIT 10.4

Arbitron Inc.

Performance Cash Award Program

	 	 	 

	Purpose

	 	Arbitron Inc., a Delaware corporation (the
“Company”), wishes to motivate, reward, and retain
key employees of the Company and its subsidiaries.
To further these objectives, the Company hereby
sets forth this Arbitron Inc. Performance Cash
Award Program (the “Program”), effective as of
___, 2010, to provide Participants with
incentives (“Individual Award Opportunities”) to
earn performance-based bonus awards (“Awards”), in
accordance with Section 162(m) (“Section 162(m)”)
of the Internal Revenue Code of 1986 (the “Code”).
(All references to “Section 162(m)” or any other
Code provision include successor provisions,
related regulations, and amendments.) The Program
provides structure for making a “Performance Award”
as an “Other Stock Based Award” or as otherwise
permitted under the Arbitron Inc. 2008 Equity
Compensation Plan, as amended (the “Equity Plan,”
which defines the preceding two terms).
	 
	 	 
	Participants

	 	During each Performance Period, the Compensation
and Human Resources Committee of the Company’s
Board of Directors (the “Committee” of the “Board”)
may designate some or all of the key employees of
the Company (including those of any subsidiary,
operating unit, or division) as eligible for
Individual Award Opportunities under this Program.
“Participants” are persons the Committee designates
who have not been paid all amounts, if any, due
them under the Program. The Committee will
designate the Participants in the Program for each
Performance Period within the Applicable Period,
except as Section 162(m) permits a later
designation. Eligible individuals are Participants
only with respect to Performance Periods for which
the Committee designates them for participation
under the Program.
	 
	 	 
	Administrator

	 	The Program’s administrator will be the Committee.
The Committee will have exclusive authority under
this Program to make Awards and establish and
determine satisfaction of Performance Goals. The
Committee may satisfy this requirement through (i)
providing that persons who are not “outside
directors” for purposes of Section 162(m) cannot
vote on an issue, (ii) allowing those persons to
abstain from voting, or (iii) creating a
subcommittee of qualifying outside directors to
take action with respect to this Program.
	 
	 	 
	 

	 	The Committee is responsible for the general operation and
administration of the Program and for carrying out its provisions

 

 

	 	 	 

	 

	 	and has full discretion in interpreting and administering the
provisions of the Program. Subject to the express provisions of the
Program, the Committee may exercise such powers and authority of the
Board as the Committee may find necessary or appropriate to carry out
its functions. The Committee will exercise its powers under the
Program in a manner that preserves the Company’s Federal income tax
deduction for payments made under the Program, in accordance with the
requirements of Section 162(m), to the maximum practical extent.
	 
	 	 
	General
Responsibilities
of the 
Committee

	 	Subject to the terms of the Program and after taking into account
the recommendations of the Company’s Chief
Executive Officer, for each Performance Period the Committee
will:

	 	 	 	 	 

	 

	 	 	 	determine any bonus pool award opportunities available,
	 
	 	 	 	 
	 

	 	 	 	designate the individuals who will be Participants in the

Program,
	 
	 	 	 	 
	 

	 	 	 	establish each Participant’s Individual Award Opportunity,
	 
	 	 	 	 
	 

	 	 	 	define “Performance Measures” (as defined in the Equity
Plan), Performance Goals and other Award terms and conditions
for each Participant,
	 
	 	 	 	 
	 

	 	 	 	determine and certify the Award amounts earned, based on
actual performance as compared to the Performance Goals,
	 
	 	 	 	 
	 

	 	 	 	determine and make permitted Negative Discretion Adjustments
to Awards otherwise earned, and
	 
	 	 	 	 
	 

	 	 	 	decide whether, under what circumstances, and subject to what
terms, Awards will be paid on a deferred basis (including
automatic deferrals at the Committee’s election or elective
deferrals at the election of Participants) when and as
permitted by Section 409A of the Code (“Section 409A.”)

	 	 	 

	 

	 	Unless the Program otherwise expressly provides, all designations,
determinations, interpretations, and other decisions made under or
with respect to the Program and all Awards made under the Program are
within the sole and absolute discretion of the Committee and will be
final, conclusive and binding on all persons, including the Company,
Participants, and Beneficiaries or other persons having or claiming
any rights under the Program.

- 2 -

 

	 	 	 

	Performance
Period

	 	A “Performance Period” is a period for which Performance Goals
are set and during which performance is to be measured to determine whether a Participant is entitled to
payment of an Award under the Program. A Performance Period may coincide with one or more complete or
partial fiscal years of the Company and may overlap. The initial Performance Period (the “Initial
Period”) will be the three fiscal year period beginning January 1, 2010 and ending on December 31, 2012.
	 
	 	 
	Applicable
Period

	 	The “Applicable Period” with respect to any Performance Period
means a period beginning on or before the first day of the Performance Period and ending no later than the
earlier of (i) the 90th day of the Performance Period or (ii) the date on which 25% of the Performance
Period has been completed.
	 
	 	 
	 

	 	Any action required under the Program to be taken within the
Applicable Period may be taken at a later date only if the provisions
of Section 162(m) or the regulations thereunder are modified, or are
interpreted by the Internal Revenue Service, to permit such later
date. In such event, the definition of the Applicable Period under
this Program will be treated as amended accordingly.
	 
	 	 
	Performance Goals

	 	The Committee will, within the Applicable Period, set
one or more  “Performance Goals” for a Performance Period for each
Participant, and/or each group of Participants,
and/or each bonus pool (if any), based on the
achievement of specified Performance Measures.
	 
	 	 
	 

	 	In all cases, Performance Goals are to be set in a manner that will
satisfy any applicable requirements under Treas. Reg. §
1.162-27(e)(2) (as amended from time to time). Such requirements
include requirements that achieving Performance Goals be
‘substantially uncertain’ at the time that they are established, that
Performance Goals be defined in such a way that a third party with
knowledge of the relevant facts could determine whether and to what
extent the Goals have been met, and such a third party could
determine the maximum amount of the resulting Award payable (subject
to the Committee’s right to make Negative Discretion Adjustments).
The Performance Goals are specified for the Initial Period on Exhibit
I to this Program.
	 
	 	 
	Individual
Award
Opportunities

	 	“Individual Award Opportunity” means a Participant’s
opportunity to earn an Award for a given Performance Period,
based on the achievement of the Participant’s Performance Goals. The Committee will establish each
Participant’s Individual Award

- 3 -

 

	 	 	 

	 

	 	Opportunity, within the Applicable Period, for each Performance
Period.
	 
	 	 
	 

	 	An Individual Award Opportunity may be expressed in a number of
shares and then determined to be the value consistent with that
number, as of the date of the Award (an Other Stock-Based Award) but
may be expressed in dollars or may be based on a formula that is
consistent with the provisions of the Program. The Individual Award
Opportunity is not influenced by a change in the price of Arbitron
common stock after the grant date. If Individual Award Opportunities
are expressed in terms of shares of any bonus pool, the shares of
such bonus pool designated for Individual Award Opportunities may not
exceed 100% of the pool for any Performance Period.
	 
	 	 
	Limitation on
Awards

	 	Notwithstanding any other provision of this Program, the
maximum Award payable under the Program to any individual Participant in any single fiscal year will be
$2 million (or such larger number as the Company’s stockholders may approve with respect to the Equity
Plan).
	 
	 	 
	Negative
Discretion
Adjustments

	 	The Committee’s powers include the power to make “Negative
Discretion Adjustments,” which are adjustments that eliminate or
reduce (but not increase) an Award otherwise payable to a Participant for a Performance Period. No
Negative Discretion Adjustment may cause an Award to fail to qualify as “performance based compensation”
under Section 162(m).
	 
	 	 
	Payment
of Awards

	 	Subject to the limitations set forth in this section, Awards
determined under the Program for a Performance Period will be paid to Participants in cash. Awards will
be paid in a lump sum as soon as practicable following the end of the Performance Period to which the
Awards apply and as provided in the Awards, but, in any event during the calendar year following the end
of the Performance Period, except as provided in the Awards with respect to prior cessations of
employment.
	 
	 	 
	          Certification

	 	No Award will be paid unless and until the Committee, based on the
Company’s audited financial results for such Performance Period (as prepared and
reviewed by the Company’s independent public accountants), has certified in the manner
prescribed under applicable regulations the extent to which the Performance Goals for
the Performance Period have been satisfied and has made its decisions regarding the
extent of any Negative Discretion Adjustment of Awards.

- 4 -

 

	 	 	 

	          Deferral

	 	The Committee may specify that a portion of the Award for any given
Performance Period will be paid on a deferred basis, in accordance with any Award
payment rules the Committee may establish and announce for the Performance Period, in a
manner compliant with Section 409A.
	 
	 	 
	          Continued
             Employment

	 	The Committee may require that Participants for a Performance
Period must still be employed as of end of the Performance Period and/or
as of the later date that the Awards for the Performance Period are announced to be
eligible for an Award for the Performance Period. Any such requirement must be
established and announced within the Applicable Period, and may be subject to such
exceptions as the Committee may specify within the Applicable Period.
	 
	 	 
	Forfeiture
or Proration

	 	Within the Applicable Period and subject to the Committee
certification required for payment of Awards, the Committee may adopt such forfeiture, proration, or
other rules as it deems appropriate, in its sole and absolute discretion, regarding the impact on
Awards of (i) a Participant’s death, Disability, voluntary termination of employment, termination of
employment by the Company and its subsidiaries other than for Cause, or termination of employment by
the Company and its subsidiaries for Cause, (ii) a “Reorganization Event” or (iii) a “Change in
Control Event” (as the latter two terms are defined in the Equity Plan). The rules for the Initial
Period are set forth on Exhibit I.
	 
	 	 

	 	 	 	 	 

	          Employment 
          Termination

	 	 	 	“Termination of employment” means the time when the
employer-employee or other service-providing relationship between the
Participant and the Company and its Subsidiaries ends for any reason. The Committee, in
its sole discretion, will determine all questions of whether particular terminations or
leaves of absence are terminations of employment. If and to the extent Section 409A
requires, a termination of employment will mean a “separation from service” as defined
in Section 409A.
	 
	 	 	 	 
	          Disability

	 	 	 	“Disability” means a Participant’s disability such as would entitle him
or her to receive disability income benefits pursuant to the long-term disability plan
of the Company or Subsidiary then covering the Participant or, if no such plan exists
or is applicable to the Participant, his or her 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).

- 5 -

 

	 	 	 	 	 

	          Cause

	 	 	 	“Cause” will have the meaning set forth in any employment or other agreement
or policy applicable to the Participant 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.
	 
	 	 	 	 
	          Retirement

	 	 	 	“Retirement” means the termination (other than for Cause or by reason of
death or Disability) of a Participant’s employment or other service on or after the
date on which the Participant 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 Participant, provided that if the Participant is not
covered by any such plan or practice, the Participant will be treated as covered by the
Company’s plan or practice for purposes of this determination).

	 	 	 

	Clawback

	 	If the Board or the Committee determines, in its sole discretion, that a
Participant engaged in fraud or misconduct as a result of which or in connection with which
the Company is required to or decides to restate its financials, the Committee may, in its
sole discretion, impose any or all of the following, to which each Participant agrees by
accepting the Award:

	 	 	 	 	 

	 

	 	 	 	Immediate expiration of the Award, whether vested or not, if
granted within the first 24 months after issuance or filing
of any financial statement that is being restated (the
“Recovery Measurement Period”); and
	 
	 	 	 	 
	 

	 	 	 	Payment or transfer to the Company of the amount in payment
under an Award that consists of the greater of (i) the value
of the Award on the date granted if during the Recovery
Measurement Period and (ii) the value of Award paid during
the Recovery Measurement Period. The Committee may impose a
different determination of the value in its sole discretion.

- 6 -

 

	 	 	 	 	 

	 

	 	 	 	This remedy is in addition to any other remedies that the
Company may have available in law or equity.
	 
	 	 	 	 
	 

	 	 	 	Payment is due in cash or cash equivalents within 10 days
after the Committee provides notice to a Participant that it
is enforcing this clawback. Payment will be calculated on a
gross basis, without reduction for taxes or commissions. The
Company may, but is not required to, accept retransfer of
shares (where applicable) in lieu of cash payments.

	 	 	 

	Other
Plans

	 	A Participant in this Program may not also participate in the
Company’s general bonus plans during any Performance Period if such participation would cause an Award under
this Program to fail to qualify as “performance based” under Section 162(m).
	 
	 	 
	 

	 	Awards will not be treated as compensation for purposes of any other
compensation or benefit plan, program, or arrangement of the Company
or any subsidiary unless and except to the extent that the Board or
the Committee determines in writing.
	 
	 	 
	 

	 	The adoption of this Program may not be construed as limiting the
power of the Board or the Committee to adopt such other incentive
arrangements as either may otherwise deem appropriate.
	 
	 	 
	Legal 
Compliance 

	 	The Company will not make payments of Awards until all
applicable requirements imposed by Federal and state laws, rules, and regulations, and by any applicable
regulatory agencies, have been fully met. No provision in the Program or action taken under it authorizes
any action that Federal or state laws otherwise prohibit.
	 
	 	 
	 

	 	The Program is intended to conform with all provisions of Section
162(m) and Treas. Reg. § 1.162-27 to the extent necessary to allow
the Company a Federal income tax deduction for Awards as “qualified
performance based compensation.”
	 
	 	 
	 

	 	Notwithstanding anything in the Program to the contrary, the
Committee must administer the Program, and Awards may be granted and
paid, only in a manner that conforms to such laws, rules, and
regulations. To the extent permitted by applicable law, the Program
will be treated as amended to the extent necessary to conform to such
laws, rules, and regulations.
	 
	 	 
	Tax Withholding

	 	The Company may make all appropriate provisions for the withholding of Federal, state, and local taxes
imposed with respect to Awards, which provisions may vary with the time and manner of payment.

- 7 -

 

	 	 	 

	Nontransfer
of Rights

	 	Except as and to the extent the law requires, or as the Program
expressly provides, a Participant’s rights under the Program may not be assigned, pledged, or
otherwise transferred in any way, whether by operation of law or otherwise or through any legal or
equitable proceedings (including bankruptcy), by the Participant to any person.
	 
	 	 
	Beneficiary
Designations

	 	Each Participant may designate in a written form filed with the
Committee (or another designated recipient) the person or persons (the “Beneficiary” or
“Beneficiaries”) to receive the amounts (if any) payable under the Program if the Participant dies
before the Award payment date for a Performance Period. A Beneficiary designation filed under this
section will not be considered a prohibited transfer of rights.
	 
	 	 
	 

	 	A Participant may change a Beneficiary designation at any time
without the Beneficiary’s consent (unless otherwise required by law)
by filing a new written Beneficiary designation with the Committee.
A Beneficiary designation will be effective only if the Company is in
receipt of the designation before the Participant’s death.
	 
	 	 
	 

	 	If no effective Beneficiary designation is made, the beneficiary of
any amounts due will be the Participant’s estate.
	 
	 	 
	Amendment or
Termination
of Program

	 	Subject to the limitations set forth in this
section, the Board or the
Committee may amend, suspend, or terminate the
Program at any
time, without the consent of the Participants or
their Beneficiaries.
	 
	 	 
	 

	 	Without the Participant’s written consent, no amendment or
termination may materially adversely affect the Award rights (if any)
of any already designated Participant for a given Performance Period
once the Committee has announced the Participant designations and
Performance Goals for such Performance Period.
	 
	 	 
	 

	 	The Board or the Committee may make any amendments necessary to
comply with applicable regulatory requirements, including Section
162(m) and regulations thereunder.
	 
	 	 
	Limitations on 
Liability

	 	No member of the Committee and no other
individual acting as a
director, officer, other employee or agent of the
Company will be liable to any Participant, former
Participant, spouse, Beneficiary, or any other
person for any claim, loss, liability, or expense
incurred in connection with the Program. No
member of the Committee will be liable for any
action or determination (including, but limited
to, any decision not to act) made in good faith
with respect to the Program or any Award under
the Program.

- 8 -

 

	 	 	 

	 

	 	The Company will indemnify and hold harmless each member of the
Committee, director, officer, other employee, or agent of the Company
to whom it or another has delegated or does delegate any duty or
power relating to the administration or interpretation of the
Program, against any cost or expense (including attorneys’ fees) or
liability (including any sum paid in settlement of a claim with the
Board’s approval) arising out of any act or omission to act
concerning this Program unless arising out of such person’s own fraud
or bad faith.
	 
	 	 
	No Employment
Contract

	 	Nothing contained in this Program constitutes an employment
contract between the Company and the Participants. The Program does not give any Participant any
right to be retained in the Company’s employ, nor does it enlarge or diminish the Company’s right
to end the Participant’s employment or other relationship with the Company.
	 
	 	 
	Applicable Law;
Venue;
Jurisdiction;
Jury Trial

	 	The laws of the State of Maryland (other than its choice of law
provisions) govern this Program and its interpretation.
Except as an applicable arbitration agreement provides otherwise,
any action, suit or other legal proceeding arising under or relating
to any provision of this Program must be commenced only in a court of the State of Maryland (or,
if appropriate, a federal court located within the State of Maryland), and the Company and each
Participant consents to the jurisdiction of such a court. With respect to any such court action,
the Company and each Participant hereto (a) submits to the personal jurisdiction of such courts;
and (b) waive any requirement (whether imposed by statute, rule of court, or otherwise) with
respect to personal jurisdiction, inconvenient forum, or service of process.
	 
	 	 
	 

	 	TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE COMPANY AND EACH
PARTICIPANT WAIVES, AND COVENANTS THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR
OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER PROCEEDING ARISING IN WHOLE
OR IN PART UNDER OR IN CONNECTION WITH THIS PROGRAM, WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, THE PARTIES AGREE THAT ANY PARTY MAY FILE
A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND
BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE THEIR RIGHTS TO TRIAL BY JURY IN
ANY PROCEEDING WHATSOEVER BETWEEN

- 9 -

 

	 	 	 

	 

	 	THEM RELATING TO THIS AGREEMENT OR TO ANY OF THE MATTERS CONTEMPLATED
UNDER THIS PROGRAM OR RELATING TO THE PARTICIPANT’S EMPLOYMENT.
	 
	 	 
	ERISA Treatment

	 	The Company intends that the Program be exempt from regulation under the Employee Retirement Income
Security Act of 1974 (“ERISA ”). The Company, Board, and Committee must at all times interpret and
administer the Program in a manner consistent with that exemption.
	 
	 	 
	Unfunded;
Unsecured

	 	This Program will at all times be entirely unfunded and no
provisions will at any time be made with respect to segregating assets of the Company for payment of
any benefits hereunder. Additionally, nothing contained herein may be construed as giving a
Participant, his or her beneficiary, or any other person, any equity or other interest of any kind in
any assets of the Company or creating a trust of any kind or a fiduciary relationship of any kind
between the Company and any such person. As to any claim for any unpaid amounts under this Program, a
Participant, his or her beneficiary, and any other person having a claim for payment will be unsecured
creditors.
	 
	 	 
	Section 409A

	 	The Program is intended to comply with the requirements of Section 409A and must be construed
consistently with that section. Notwithstanding anything in the Program to the contrary, if the Award
would make payment in connection with a Participant’s “separation from service” within the meaning of
Section 409A, as determined by the Company), and if (x) the Participant is 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 the Participant, in accepting the Award, agrees to be bound) and (y)
the payment of the Award would result in the imposition of additional tax under Section 409A if
distributed to the Participant within the six month period following his or her separation from
service, then the distribution under such Award 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 his
or her date of death, and will be made within 30 days thereafter. Neither the Company nor any
Participant will have the right to accelerate or defer the delivery of any payment except to the
extent specifically permitted or required by Section 409A. In any event, the Company makes no
representations or warranty and will have no liability to Participants or any other person, if any
provisions of or distributions under this Program are determined to constitute deferred compensation
subject to Section 409A but not to satisfy the conditions of that section.

- 10 -

 

Arbitron Inc.

Performance Cash Award Program

Exhibit I

Initial Period Performance Goals and Forfeiture Rules

[Performance Goals as determined by the Committee]

	 	 	 

	Termination

	 	If a Participant’s employment ends during a Performance Period, any Award applicable to that
Performance Period will immediately expire without payment, unless the employment cessation is due
to death, Disability, or Retirement. If employment ends because of death, Disability, or
Retirement, the Participant will receive payment when active Participants are paid, based on
satisfaction of the Performance Goals, and with the payment prorated by the portion of the
Performance Period that preceded employment termination over the total Performance Period. These
forfeiture rules will apply to future Performance Periods until the Committee changes them
prospectively.
	 
	 	 
	Effect of a
Substantial
Corporate Change

	 	At a Change in Control Event or Reorganization Event (together a
“Substantial Corporate Change”), outstanding Awards will
convert into restricted cash awards that vest on the third anniversary of the Award date (assuming
continued employment).
	 
	 	 
	 

	 	The value of the restricted cash award would depend upon the timing
of the Substantial Corporate Change:

	 	 	 	 	 

	 

	 	 	 	If the Substantial Corporate Change occurs during months 1
through 18 of the Performance Period, the Award will convert
into restricted cash based on the Target Payout (as specified
in the applicable Award Agreement).
	 
	 	 	 	 
	 

	 	 	 	If the Substantial Corporate Change occurs during months
19-36 of the Performance Period, the Award will convert into
restricted cash based on performance to-date (if measurable)
or to the Target Payout if performance is not measurable.

	 	 	 

	 

	 	Vesting accelerates on unvested Awards if a Participant is terminated
without Cause or, where applicable, resigns for Good Reason during
the 24 month period following a Substantial Corporate Change.

- 11 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]