Arbitron
Inc.
2008 Equity Compensation
Plan
Restricted Stock Unit
Agreement
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 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:
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The Grant
becomes nonforfeitable (“ Vested ”) as to
some or all of the RSUs only as provided on
Exhibit A.
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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.
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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.
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RSUs cannot be
voted. You may not vote the Shares unless and until the Shares are
distributed to you.
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You may not
sell, assign, pledge, encumber, or otherwise transfer any interest
(“ Transfer ”) in the Shares until the
Shares are distributed to you.
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Any attempted
Transfer that precedes the Distribution Date for such Shares is
invalid.
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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.
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Additional
Conditions
to Receipt
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The Company may
postpone issuing and delivering any Shares for so long as the
Company determines to be advisable to satisfy the
following:
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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;
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its receiving
proof it considers satisfactory that a person or entity seeking to
receive the Shares after your death is entitled to do
so;
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your complying
with any requests for representations under the Grant and the Plan;
and
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its or your
complying with any federal, state, or local tax withholding
obligations.
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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.
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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.
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Additional
Representations
from You
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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:
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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
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agree that you
will not sell, transfer, or otherwise dispose of the S
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