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                                                                   EXHIBIT 10.16

                          THE ADVISORY BOARD COMPANY
                                TERM SHEET FOR
                     DIRECTOR NON-QUALIFIED STOCK OPTIONS

FOR GOOD AND VALUABLE CONSIDERATION, The Advisory Board Company, a Maryland
corporation (the "Company"), hereby grants to Optionee named below the
non-qualified stock option (the "Option") to purchase any part or all of the
number of shares of its $0.01 par value Class B Nonvoting Common Stock (the
"Common Stock") that are covered by this Option, as specified below, at the
Exercise Price per share specified below and upon the terms and subject to the
conditions set forth in this Term Sheet, the Plan specified below (the "Plan")
and the Standard Terms and Conditions (the "Standard Terms and Conditions")
promulgated under such Plan, each as amended from time to time. This Option is
granted pursuant to the Plan and is subject to and qualified in its entirety by
the Standard Terms and Conditions.


<TABLE>
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<S>                               <C>
The Plan:                         This Option is granted pursuant to the Company's
                                  Directors' Stock Plan attached hereto as Exhibit A.
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Name of Optionee:
----------------------------------------------------------------------------------------------
Social Security Number:
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Grant Date:
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Number of Shares of Common
Stock covered by Option:
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Exercise Price Per Share:         $
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Expiration Date:
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Vesting Schedule:
                                  -----------, subject to the Standard Terms and Conditions
                                  attached hereto as Exhibit B.
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</TABLE>


This Option is not intended to qualify as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended. By accepting this
Term Sheet, Optionee acknowledges that he or she has received and read, and
agrees that this Option shall be subject to, the terms of this Term Sheet, the
Plan and the Standard Terms and Conditions.

THE ADVISORY BOARD COMPANY           THE OPTIONEE


By:
    --------------------------       ------------------------------------------
Name:                                Name:
Title:                               Address:



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                         THE ADVISORY BOARD COMPANY
                      STANDARD TERMS AND CONDITIONS FOR
                    DIRECTOR NON-QUALIFIED STOCK OPTIONS


1.      TERMS OF OPTION

        THE ADVISORY BOARD COMPANY, a Maryland corporation (the "Company"), has
        granted to the Optionee named in the Term Sheet provided to said
        Optionee herewith (the "Term Sheet") a non-qualified stock Option (the
        "Option") to purchase any part or all of the number of shares of the
        Company's Class B Common Stock, $0.01 par value per share (the "Common
        Stock"), set forth in Term Sheet, at the purchase price per share and
        upon the other terms and subject to the conditions set forth in the Term
        Sheet, these Standard Terms and Conditions (as amended from time to
        time), and the Plan specified in the Term Sheet (the "Plan"). The Option
        is granted in consideration for Optionee's service as a director of the
        Company.

2.      NON-QUALIFIED STOCK OPTION

        The Option is not intended to be an incentive stock Option under Section
        422 of the Internal Revenue Code of 1986, as amended (the "Code") and
        will be interpreted accordingly.

3.      CONTINUED SERVICE

        Except as otherwise provided in these Standard Terms and Conditions and
        the Plan, the Option shall be exercisable only if Optionee serves as a
        director of the Company on the date that the Option becomes vested, as
        set forth in the Term Sheet.

4.      OPTION EXERCISE PRICE

        The exercise price (the "Exercise Price") of the Option is set forth in
        the Term Sheet.

5.      TERM OF OPTION AND EXERCISE OF OPTION

        To the extent not previously exercised, and subject to termination or
        acceleration as provided in these Standard Terms and Conditions, the
        Option shall be fully exercisable on and after it becomes vested, as
        described in the Term Sheet, to purchase up to that number of shares of
        Common Stock as set forth in the Term Sheet. Notwithstanding anything to
        the contrary in Sections 6 through 9 hereof, no part of the Option may
        be exercised after ten (10) years from the grant date set forth in the
        Term Sheet.

        To exercise the Option (or any part thereof), Optionee shall deliver a
        "Notice of Exercise" to the Company specifying the number of whole
        shares of Common Stock Optionee wishes to purchase and how Optionee's
        shares of Common Stock should be registered (in Optionee's name only or
        in Optionee's and Optionee's spouse's names as community property or as
        joint tenants with right of survivorship). The Company shall not be




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        obligated to issue any shares of Common Stock until Optionee shall have
        paid the total Exercise Price for that number of shares of Common Stock.
        The Exercise Price may be paid (a) in cash, (b) by payment under an
        arrangement with a broker where payment is made pursuant to an
        irrevocable direction to the broker to deliver all or part of the
        proceeds from the sale of the Option shares to the Company, (c) by
        tendering (either physically or by attestation) shares of Common Stock
        owned by Optionee and having a Market Value (defined in the Plan) on the
        date of exercise equal to the Exercise Price but only if such will not
        result in an accounting charge to the Company, or (d) by any combination
        of the foregoing. In addition, the Exercise Price may be payable in such
        other form(s) of consideration as the Committee (defined in the Plan) in
        its discretion shall specify, including without limitation by loan or by
        techniques that may result in an accounting charge to the Company.
        Fractional shares may not be exercised. Shares of Common Stock will be
        issued as soon as practical after exercise. Optionee will have the
        rights of a stockholder only after the shares of Common Stock have been
        issued.

        Notwithstanding the above, the Company shall not be obligated to deliver
        any shares of Common Stock during any period when the Company determines
        that the exercisability of the Option or the delivery of shares
        hereunder would violate any federal, state or other applicable laws.

6.      TERMINATION OF RELATIONSHIP

        After the effective date of his or her election as a director, if
        Optionee ceases to be a director of the Company for any reason other
        than death, Disablement (defined below) or Retirement (defined below),
        Optionee may at any time within ninety (90) days from the date of such
        termination exercise the Option to the extent it was exercisable on the
        date of termination. After such ninetieth (90th) day, the Option shall
        terminate to the extent that it is unexercised.

7.      DEATH

        If Optionee ceases to be a director of the Company on account of
        Optionee's death while in the service of the Company as a director, the
        executor of Optionee's will, administrator of Optionee's estate or any
        successor trustee of a grantor trust may exercise Optionee's rights
        during the twelve (12) months next succeeding the date of death. The
        number of shares exercisable by Optionee's estate or beneficiary will be
        the total number of unexercised shares under the Option were exercisable
        on the date of Optionee's death. If Optionee dies within thirty (30)
        days of ceasing service with the Company as a director, the executor of
        Optionee's will, administrator of Optionee's estate or any successor
        trustee of a grantor trust may exercise within twelve (12) months from
        the date of Optionee's termination those outstanding options which were
        exercisable on the date of Optionee's termination.

        After either twelve (12) month period described in this Section 7, the
        Option shall terminate to the extent that it is unexercised.




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8.      DISABILITY

        If Optionee ceases to be a director of the Company on account of
        Optionee's Disablement, Optionee may within twelve (12) months from the
        date of Optionee's Disablement exercise the Option to the extent it was
        exercisable on the date of Optionee's Disablement. After such twelve
        (12) month period, the Option shall terminate to the extent that it is
        unexercised. For purposes of these Standard Terms and Conditions,
        "Disablement" means a physical condition arising from an illness or
        injury which renders an individual incapable of performing work. The
        determination of the Committee as to an individual's Disablement shall
        be conclusive on all of the parties.

9.      RETIREMENT

        If Optionee ceases to be a director of the Company on account of
        Optionee's retirement from the Board of Directors, the Option, to the
        extent it was exercisable on the date of Retirement, may be exercised by
        Optionee for a period of twelve (12) months following the date of
        Optionee's Retirement.

        After such twelve (12) month period, the Option shall terminate to the
        extent that it is unexercised. "Retirement" means ceasing from service
        as a director of the Company at or after age 60.

10.     INCOME TAXES WITHHOLDING

        The Company shall not be obligated to issue any shares of Common Stock
        pursuant to the exercise of the Option until the Optionee has satisfied
        in full any and all taxes and tax withholding requirements as may be
        applicable. Such taxes may be paid in the manner provided for payment of
        the Exercise Price of the Option. The Committee may, in its discretion,
        make such provisions and take such steps as it may deem necessary or
        appropriate for the withholding of all federal, state, local and other
        taxes required by law to be withheld with respect to the issuance or
        exercise of the Option including, but not limited to, deducting the
        amount of any such withholding taxes from any amount then or thereafter
        payable to the Optionee.

11.     NON-TRANSFERABILITY OF OPTION

        Unless otherwise provided by the Committee, Optionee may not assign or
        transfer the Option to anyone other than by will or the laws of descent
        and distribution and Options shall be exercisable only by Optionee
        during his or her lifetime. The Company may cancel Optionee's Option if
        Optionee attempts to assign or transfer it in a manner inconsistent with
        this Section 11.

12.     DISPUTES

        Any disagreement concerning Optionee's Option shall be finally and
        conclusively determined as provided in the Plan.




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13.     THE PLAN AND OTHER AGREEMENTS

        The provisions of the Plan are incorporated into these Standard Terms
        and Conditions by this reference. In the event of a conflict between the
        terms and conditions of these Standard Terms and Condition and the Plan,
        the Plan controls. Certain capitalized terms not otherwise defined
        herein are defined in the Plan.

        The Term Sheet, these Standard Terms and Conditions and the Plan
        constitute the entire understanding between Optionee and the Company
        regarding the Option. Any prior agreements, commitments or negotiations
        concerning the Option are superseded.

14.     NO INTEREST IN SHARES SUBJECT TO OPTION.

        Neither Optionee (individually or as a member of a group) nor any
        beneficiary or other person claiming under or through Optionee shall
        have any right, title, interest, or privilege in or to any shares of
        Common Stock allocated or reserved for the purpose of the Plan or
        subject to the Term Sheet or these Standard Terms and Conditions except
        as to such shares of Common Stock, if any, as shall have been issued to
        such person upon exercise of the Option or any part of it.

15.     NOT A CONTRACT FOR SERVICES.

        Nothing in the Plan, in the Term Sheet, these Standard Terms and
        Conditions or any other instrument executed pursuant the Plan shall
        confer upon Optionee any right to continue to serve as a director of the
        Company or shall affect the right of the Company to terminate Optionee
        with or without cause.

16.     NOTICES.

        All notices, requests, demands and other communications pursuant to
        these Standard Terms and Conditions shall be in writing and shall be
        deemed to have been duly given if personally delivered, telexed or
        telecopied to, or, if mailed, when received by, the other party at the
        following addresses (or at such other address as shall be given in
        writing by either party to the other):

        If to the Company to:

        The Advisory Board Company
        600 New Hampshire Avenue, N.W.
        Washington, D.C.  20037
        Attention:  Chairman of the Board

        If to the Optionee, to the address set forth below the Optionee's
        signature on the Term Sheet.



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17.     SEPARABILITY.

        In the event that any provision of these Standard Terms and Conditions
        is declared to be illegal, invalid or otherwise unenforceable by a court
        of competent jurisdiction, such provision shall be reformed, if
        possible, to the extent necessary to render it legal, valid and
        enforceable, or otherwise deleted, and the remainder of these Standard
        Terms and Conditions shall not be affected except to the extent
        necessary to reform or delete such illegal, invalid or unenforceable
        provision.

18.     HEADINGS.

        The headings preceding the text of the sections hereof are inserted
        solely for convenience of reference, and shall not constitute a part of
        these Standard Terms and Conditions, nor shall they affect its meaning,
        construction or effect.

19.     FURTHER ASSURANCES.

        Each party shall cooperate and take such action as may be reasonably
        requested by another party in order to carry out the provisions and
        purposes of these Standard Terms and Conditions.

20.     BINDING EFFECT.

        These Standard Terms and Conditions shall inure to the benefit of and be
        binding upon the parties hereto and their respective permitted heirs,
        beneficiaries, successors and assigns.



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