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                                                                    EXHIBIT 10.1

                           ARISTOTLE PUBLISHING, INC
                           -------------------------

                            1999 STOCK OPTION PLAN
                            ----------------------

     1.   PURPOSE.  This 1999 Stock Option Plan/1/ ("Plan") is established as a
          -------
compensatory plan to attract, retain and provide equity incentives to selected
persons to promote the financial success of Aristotle Publishing, Inc., a
corporation organized under the laws of the District of Columbia (the
"Company").  Capitalized terms not previously defined herein are defined in
Section 17 of this Plan.

     2.   TYPES OF OPTIONS AND SHARES.  Options granted under this Plan (the
          ---------------------------
"Options") may be either (a) incentive stock options ("ISOs") within the meaning
of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), or
(b) nonqualified stock options ("NQSOs"), as designated at the time of grant.
The shares of stock that may be purchased upon exercise of Options granted under
this Plan (the "Shares") are shares of the common stock of the Company.

     3.   NUMBER OF SHARES.  The aggregate number of Shares that may be issued
          ----------------
pursuant to Options granted under this Plan is Fifty-five (55) Shares, subject
to adjustment as provided in this Plan.  If any Option expires or is terminated
without being exercised in whole or in part, the unexercised or released Shares
from such Option shall be available for future grant and purchase under this
Plan.  At all times during the term of this Plan, the Company shall reserve and
keep available such number of Shares as shall be required to satisfy the
requirements of outstanding Options under this Plan.

     4.   ELIGIBILITY.
          -----------

          (a)  General Rules of Eligibility.  Options may be granted to
               ----------------------------
employees, officers, directors, consultants, independent contractors and
advisors (provided such consultants, contractors and advisors render bona fide
services not in connection with the offer and sale of securities in a capital-
raising transaction) of the Company or any Parent, Subsidiary or Affiliate of
the Company. ISOs may be granted only to employees (including officers and
directors who are also employees) of the Company or a Parent or Subsidiary of
the Company. The Committee (as defined in Section 14) in its sole discretion
shall select the recipients of Options ("Optionees").  An Optionee may be
granted more than one Option under this Plan.

          (b)  Company Assumption of Options.  The Company may also, from time
               -----------------------------
to time, assume outstanding options granted by another company, whether in
connection with an acquisition of such other company or otherwise, by either (i)
granting an Option under this Plan in replacement of the option assumed by the
Company, or (ii) treating the assumed option as if it

_____________
/1/ Approved by the Company Board of Directors on March 16, 1999.
    Approved by the Company shareholders on March 16, 1999.

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had been granted under this Plan if the terms of such assumed option could be
applied to an option granted under this Plan. Such assumption shall be
permissible if the holder of the assumed option would have been eligible to be
granted an option hereunder if the other company had applied the rules of this
Plan to such grant.

     5.   TERMS AND CONDITIONS OF OPTIONS.  The Committee shall determine
          -------------------------------
whether each Option is to be an ISO or an NQSO, the number of Shares subject to
the Option, the exercise price of the Option, the period during which the Option
may be exercised, and all other terms and conditions of the Option, subject to
the following:

          (a)  Form of Option Grant.  Each Option granted under this Plan shall
               --------------------
be evidenced by a written Stock Option Grant (the "Grant") in substantially the
form attached hereto as Exhibit A or such other form as shall be approved by the
Committee.

          (b)  Date of Grant.  The date of grant of an Option shall be the date
               -------------
on which the Committee makes the determination to grant such Option unless
otherwise specified by the Committee and subject to applicable provisions of the
Code. The Grant representing the Option will be delivered to the Optionee with a
copy of this Plan within a reasonable time after the date of grant; provided,
however that if, for any reason, including a unilateral decision by the Company
not to execute an agreement evidencing such option, a written Grant is not
executed within sixty (60) days after the date of grant, such option shall be
deemed null and void. No Option shall be exercisable until such Grant is
executed by the Company and the Optionee.

          (c)  Exercise Price.  The exercise price of an NQSO shall be not less
               --------------
than eighty-five percent (85%) of the Fair Market Value of the Shares on the
date the Option is granted. The exercise price of an ISO shall be not less than
one hundred percent (100%) of the Fair Market Value of the Shares on the date
the Option is granted. The exercise price of any Option granted to a person
owning more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company or any Parent or Subsidiary of the Company ("Ten
Percent Shareholders") shall not be less than one hundred and ten percent (110%)
of the Fair Market Value of the Shares on the date the Option is granted.

          (d)  Exercise Period.  Options shall be exercisable within the times
               ---------------
or upon the events determined by the Committee as set forth in the Grant;
provided, however that each Option must become exercisable at a rate of at least
twenty percent (20%) per year over five (5) years from the date the Option is
granted; and provided, however, that no Option shall be exercisable after the
expiration of ten (10) years from the date the Option is granted, and provided
further that no ISO granted to a Ten Percent Shareholder shall be exercisable
after the expiration of five (5) years from the date the Option is granted.

          (e)  Limitations.
               -----------

               (i) ISO Limitations. The aggregate Fair Market Value (determined
     as of the time an Option is granted) of stock with respect to which ISOs
     are exercisable for the first time by an Optionee during any calendar year
     (under this Plan or under any other

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     incentive stock option plan of the Company or any Parent or Subsidiary of
     the Company) shall not exceed one hundred thousand dollars ($100,000). If
     the Fair Market Value of stock with respect to which ISOs are exercisable
     for the first time by an Optionee during any calendar year exceeds
     $100,000, the Options for the amount in excess of $100,000 shall be treated
     as not being ISOs and shall be NQSOs. The foregoing shall be applied by
     taking Options into account in the order in which they were granted. In the
     event that the Code or the regulations promulgated thereunder are amended
     after the effective date of this Plan to provide for a different limit on
     the Fair Market Value of Shares permitted to be subject to ISOs, such
     different limit shall be incorporated herein and shall apply to any Options
     granted after the effective date of such amendment.

               (ii)  NQSO Limitations.

               Limitations on Grants.  The foregoing provisions of this Plan
               ---------------------
     notwithstanding, no Optionee shall be granted Options under this Plan in
     any one fiscal year which in the aggregate shall permit the Optionee to
     purchase more than _____ [sic] shares of Common Stock, provided that a
     newly-hired Optionee may in addition receive a one-time Option grant to
     purchase up to an additional _____ [sic] shares of Common Stock upon
     acceptance of employment with the Company or any Parent, Subsidiary or
     Affiliate of the Company. To the extent the Board of Directors of the
     Company determines that the limitations such as the provisions of this
     Section 5(e)(ii) are no longer required to preserve the deductibility for
     the Company of option-related compensation under Section 162(m) of the
     Code, the Board of Directors may modify or eliminate the limitations
     contained in this Section 5(e)(ii).

          (f)  Options Non-Transferable.  Options granted under this Plan, and
               ------------------------
any interest therein, shall not be transferable or assignable by the Optionee,
and may not be made subject to execution, attachment or similar process,
otherwise than by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionee only by the Optionee or any
permitted transferee.

          (g)  Assumed Options.  In the event the Company assumes an option
               ---------------
granted by another company in accordance with Section 4(b) above, the terms and
conditions of such option shall remain unchanged (except the exercise price and
the number and nature of shares issuable upon exercise, which will be adjusted
appropriately pursuant to Section 424 of the Code and the Treasury Regulations
applicable thereto). In the event the Company elects to grant a new option
rather than assuming an existing option (as specified in Section 4), such new
option need not be granted at Fair Market Value on the date of grant and may
instead be granted with a similarly adjusted exercise price.

          (h)  Termination of Options.  Except as otherwise provided in an
               ----------------------
Optionee's grant, options granted under the Plan shall terminate and may not be
exercised if the Optionee ceases to be employed by, or provide services to, the
Company or any Parent or Subsidiary of the Company (or, in the case of a NQSO,
by or to any Affiliate of the Company). An Optionee shall be considered to be
employed by the Company for all purposes under this Section 5(h) if the

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Optionee is an officer, director or full-time employee of the Company or any
Parent, Subsidiary or Affiliate of the Company or if the Committee determines
that the Optionee is rendering substantial services as a part-time employee,
consultant, contractor or advisor to the Company or any Parent, Subsidiary or
Affiliate of the Company. The Committee shall have discretion to determine
whether an Optionee has ceased to be employed by the Company or any Parent,
Subsidiary or Affiliate of the Company and the effective date on which such
employment terminated (the "Termination Date").

               (i)  Termination Generally.  If an Optionee ceases to be employed
                    ---------------------
     by the Company and all Parents, Subsidiaries or Affiliates of the Company
     for any reason except death or disability, the Options which are vested
     (the "Vested Options"), to the extent (and only to the extent) exercisable
     by the Optionee on the Termination Date, may be exercised by the Optionee,
     but only within three months after the Termination Date or such shorter
     period of time as provided in the Grant, but in no event less than thirty
     (30) days; provided that the Option may not be exercised in any event after
     the expiration date of the Option (the "Expiration Date").

               (ii) Death or Disability.  If an Optionee's employment with the
                    -------------------
     Company and all Parents, Subsidiaries and Affiliates of the Company is
     terminated because of the death of the Optionee or the permanent and total
     disability of the Optionee within the meaning of Section 22(e)(3) of the
     Code, the Vested Options, to the extent (and only to the extent)
     exercisable by the Optionee on the Termination Date, may be exercised by
     the Optionee (or the Optionee's legal representative), but only within
     twelve (12) months after the Termination Date; and provided further that
     the Option may not be exercised in any event later than the Expiration
     Date.  If an Optionee's employment with the Company and all Parents,
     Subsidiaries and Affiliates of the Company is terminated because of a
     disability of the Optionee which is not permanent and total within the
     meaning of Section 22(e)(3) of the Code, the Vested Options, to the extent
     (and only to the extent) exercisable by the Optionee on the Termination
     Date, may be exercised by the Optionee or the Optionee's legal
     representative, but only within six (6) months after the Termination Date;
     and provided further that the Option may not be exercised in any event
     later than the Expiration Date.

     6.   EXERCISE OF OPTIONS.
          -------------------

          (a)  Notices.  Options may be exercised only by delivery to the
Company of a written exercise agreement in a form approved by the Committee
(which need not be the same for each Optionee), stating the number of Shares
being purchased, the restrictions imposed on the Shares, if any, and such
representations and agreements regarding the Optionee's investment intent and
access to information, if any, as may be required by the Company to comply with
applicable securities laws, together with payment in full of the exercise price
for the number of Shares being purchased.

          (b)  Payment. Payment for the Shares may be made in cash (by check)
               -------
or, where approved by the Committee in its sole discretion at the time of grant
and where permitted

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by law: (i) by cancellation of indebtedness of the Company to the Optionee, (ii)
by surrender of shares of Common Stock of the Company already owned by the
Optionee, having a Fair Market Value equal to the exercise price of the Option;
(iii) by waiver of compensation due or accrued to Optionee for services
rendered; (iv) through delivery of a promissory note for the full exercise price
bearing interest at such rate with the note due at such time, on a secured or
unsecured basis, as determined by the Committee; (v) through a guaranty by the
Company of a loan to the Optionee by a third party of all or part of the option
price (but not more than the option price), and such guaranty may be on an
unsecured or secured basis as the Committee shall approve (including, without
limitation, by a security interest in the shares of the Company); (vi) provided
that a public market for the Company's stock exists, through a "same day sale"
commitment from the Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers, Inc. (an "NASD Dealer") whereby the
Optionee irrevocably elects to exercise the Option and to sell a portion of the
Shares so purchased to pay for the exercise price and whereby the NASD Dealer
irrevocably commits upon receipt of such Shares to forward the exercise price
directly to the Company; (vii) provided that a public market for the Company's
stock exists, through a "margin" commitment from the Optionee and an NASD Dealer
whereby the Optionee irrevocably elects to exercise the Option and to pledge the
Shares so purchased to the NASD Dealer in a margin account as security for a
loan from the NASD Dealer in the amount of the exercise price, and whereby the
NASD Dealer irrevocably commits upon receipt of such Shares to forward the
exercise price directly to the Company; or (viii) by any combination of the
foregoing.

     (c)  Withholding Taxes.  At the discretion of the Company, prior to
          -----------------
issuance of the Shares upon exercise of an Option, the Optionee shall pay or
make adequate provision for any federal or state withholding obligations of the
Company, if applicable. Where approved by the Committee in its sole discretion,
the Optionee may provide for payment of withholding taxes upon exercise of the
Option by requesting that the Company retain Shares with a Fair Market Value
equal to the minimum amount of taxes required to be withheld. In such case, the
Company shall issue the net number of Shares to the Optionee by deducting the
Shares retained from the Shares exercised. The Fair Market Value of the Shares
to be withheld shall be determined on the date that the amount of tax to be
withheld is to be determined in accordance with Section 83 of the Code (the "Tax
Date"). All elections by Optionees to have Shares withheld for this purpose
shall be made in writing in a form acceptable to the Committee and shall be
subject to the following restrictions:

          (i)    the election must be made on or prior to the applicable Tax
     Date;

          (ii)   once made, the election shall be irrevocable as to the
     particular Shares as to which the election is made;

          (iii)  all elections shall be subject to the consent or disapproval of
the Committee;

          (iv)   if the Optionee is an officer or director of the Company or
     other person (in each case, an "Insider") whose transactions in the
     Company's Common Stock are subject

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     to Section 16(b) of the Securities Exchange Act of 1934, as amended (the
     "Exchange Act") and if the Company is subject to Section 16(b) of the
     Exchange Act, the election must comply with Rule 16b-3 as promulgated by
     the Securities and Exchange Commission ("Rule 16b-3").

          (d)  Limitations on Exercise.  Notwithstanding anything else to the
               -----------------------
contrary in the Plan or any Grant, no Option may be exercisable later than the
expiration date of the Option.

     7.   RESTRICTIONS ON SHARES. At the discretion of the Committee, the
          ----------------------
Company may reserve to itself and/or its assignee(s) in the Grant (a) a right of
first refusal to purchase all Shares that an Optionee (or a subsequent
transferee) may propose to transfer to a third party and/or (b) for so long as
the Company's stock is not publicly traded, a right to repurchase a portion of
or all Shares held by an Optionee upon the Optionee's termination of employment
or service with the Company or its Parent, Subsidiary or Affiliate of the
Company for any reason within a specified time as determined by the Committee at
the time of grant at the higher of (i) the Optionee's original purchase price,
(ii) the Fair Market Value of such Shares or (iii) a price determined by a
formula or other provision set forth in the Grant.

     8.   MODIFICATION, EXTENSION AND RENEWAL OF OPTIONS. The Committee shall
          ----------------------------------------------
have the power to modify, extend or renew outstanding Options and to authorize
the grant of new Options in substitution therefor, provided that any such action
may not, without the written consent of the Optionee, impair any rights under
any Option previously granted.  Any outstanding ISO that is modified, extended,
renewed or otherwise altered shall be treated in accordance with Section 424(h)
of the Code. The Committee shall have the power to reduce the exercise price of
outstanding options; provided, however, that the exercise price per share may
not be reduced below the minimum exercise price that would be permitted under
Section 5(c) of this Plan for options granted on the date the action is taken to
reduce the exercise price.  Notwithstanding any other provision of this Plan,
the Committee may accelerate the earliest date or dates on which outstanding
Options (or any installments thereof) are exercisable.

     9.   PRIVILEGES OF STOCK OWNERSHIP.  No Optionee shall have any of the
          -----------------------------
rights of a shareholder with respect to any Shares subject to an Option until
such Option is properly exercised. No adjustment shall be made for dividends or
distributions or other rights for which the record date is prior to such date,
except as provided in this Plan. The Company shall provide annually to each
Optionee a copy of the annual financial statements of the Company.

     10.  NO OBLIGATION TO EMPLOY; NO RIGHT TO FUTURE GRANTS. Nothing in this
          --------------------------------------------------
Plan or any Option granted under this Plan shall confer on any Optionee any
right (a) to continue in the employ of, or other relationship with, the Company
or any Parent or Subsidiary of the Company or limit in any way the right of the
Company or any Parent, Subsidiary or Affiliate of the Company to terminate the
Optionee's employment or other relationship at any time, with or without cause
or (b) to have any Option(s) granted to such Optionee under this Plan, or any
other plan, or to acquire any other securities of the Company, in the future.

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     11.  ADJUSTMENT OF OPTION SHARES.  In the event that the number of
          ---------------------------
outstanding shares of Common Stock of the Company is changed by a stock
dividend, stock split, reverse stock split, combination, reclassification or
similar change in the capital structure of the Company without consideration, or
if a substantial portion of the assets of the Company are distributed, without
consideration in a spin-off or similar transaction, to the shareholders of the
Company, the number of Shares available under this Plan and the number of Shares
subject to outstanding Options and the exercise price per share of such Options
shall be proportionately adjusted, subject to any required action by the Board
or shareholders of the Company and compliance with applicable securities laws;
provided, however, that a fractional share shall not be issued upon exercise of
any Option and any fractions of a Share that would have resulted shall either be
cashed out at Fair Market Value or the number of Shares issuable under the
Option shall be rounded down to the nearest whole number, as determined by the
Committee; and provided further that the exercise price may not be decreased to
below the par value, if any, for the Shares.

     12.   ASSUMPTION OF OPTION BY SUCCESSORS.
           ----------------------------------

          (a)  In the event of (i) a merger or consolidation in which the
Company is not the surviving corporation (other than a merger or consolidation
with a wholly-owned subsidiary or a Parent or where there is no substantial
change in the shareholders of the corporation and the Options granted under this
Plan are assumed by the successor corporation), or (ii) the sale of all or
substantially all of the assets of the Company, any or all outstanding Options
shall be assumed by the successor corporation, which assumption shall be binding
on all Optionees, an equivalent option shall be substituted by such successor
corporation or the successor corporation shall provide substantially similar
consideration to Optionees as was provided to shareholders (after taking into
account the existing provisions of the Optionees' options such as the exercise
price and the vesting schedule), and, in the case of outstanding shares subject
to a repurchase option, issue substantially similar shares or other property
subject to repurchase restrictions no less favorable to the Optionee.

          (b)  In the event (i) such successor corporation, if any, refuses to
assume or substitute, as provided above, pursuant to an event described in
subsection (a) above, or (ii) in the event of both (A) (x) a consolidation or
merger in which the Company is not the surviving corporation (other than a
consolidation or merger with a wholly owned subsidiary or a Parent), or any
other corporate reorganization, in which the shareholders of the Company
immediately prior to such consolidation, merger or reorganization, own less than
fifty percent (50%) of the Company's voting power immediately after such
consolidation, merger or reorganization, or any transaction or series of related
transactions in which in excess of fifty percent (50%) of the Company's voting
power is transferred, or (y) a sale, lease or other disposition of all or
substantially all of the assets of the Company, and (B) an Optionee who is an
employee of the Company prior to such consolidation, merger, other corporate
reorganization or sale, lease, or other disposition and whose employment with
the Company or such successor corporation is terminated within twelve (12)
months of such consolidation, merger, other corporate reorganization or sale,
lease or other disposition, then, notwithstanding any contrary terms in the Plan
or Grant, the Options of each such Optionee so terminated shall become fully
exercisable

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for the entire number of Shares under such Option and be deemed to be "Vested
Options" under the Grant. Such Vested Options may be exercised (1) in case of
the event described in subsection (b)(i) above, after notice of refusal to
assume or substitute (which notice must be given at least twenty (20) days prior
to consummation of the event described in subsection (a) above) and at any time
prior to the consummation of such event, or (2) in the case of the event
described in subsection (b)(ii) above, within three (3) months after such
termination.

          (c)  In the event of a dissolution or liquidation of the Company, the
Options shall, notwithstanding any contrary terms in the Grant, expire on a date
specified in a written notice given by the Committee to the Optionees specifying
the terms and conditions of such termination (which date must be at least twenty
(20) days after the date the Committee gives the written notice).

     13.  ADOPTION AND SHAREHOLDER APPROVAL.  This Plan shall become effective
          ---------------------------------
on the date that it is adopted by the Board of the Company (the "Board").  This
Plan shall be approved by the shareholders of the Company, in any manner
permitted by applicable corporate law, within twelve (12) months before or after
the date this Plan is adopted by the Board.

     14.  ADMINISTRATION.  This Plan may be administered by the Board or a
          --------------
Committee appointed by the Board (the "Committee"). If, at any time after the
Company registers under the Exchange Act, the Board desires the Plan to be
administered by a Committee, the Board shall appoint a Committee consisting of
not less than two directors, each of whom is a Nonemployee Director.  As used in
this Plan, references to the "Committee" shall mean either such Committee or the
Board if no committee has been established.  The interpretation by the Committee
of any of the provisions of this Plan or any Option granted under this Plan
shall be final and binding upon the Company and all persons having an interest
in any Option or any Shares purchased pursuant to an Option.

     15.  TERM OF PLAN.  Options may be granted pursuant to this Plan from time
          ------------
to time on or prior to February 28, 2009, a date which is less than ten years
after the earlier of the date of approval of this Plan by the Board or the
shareholders of the Company pursuant to Section 13 of this Plan.

     16.  AMENDMENT OR TERMINATION OF PLAN.  The Board of Directors or Committee
          --------------------------------
may, at any time, amend, alter, suspend or discontinue the Plan, but no
amendment, alteration, suspension or discontinuation shall be made which would
impair the rights of any Optionee under any Option theretofore granted, without
his or her consent, or which, without the approval of the shareholders of the
Company would:

          (a)  except as provided in Section 11 of the Plan, increase the total
number of Shares reserved for the purposes of the Plan,

          (b)  extend the duration of the Plan;

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          (c)  extend the period during and over which Options may be exercised
under the Plan.

          Without limiting the foregoing, the Committee may at any time or from
time to time authorize the Company, with the consent of the respective
Optionees, to issue new options in exchange for the surrender and cancellation
of any or all outstanding Options.

     17.  CERTAIN DEFINITIONS. As used in this Plan, the following terms shall
          -------------------
have the following meanings:

          (a)  "Affiliate" means any corporation that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or is under
common control with, another corporation, where "control" (including the terms
"controlled by" and "under common control with") means the possession, direct or
indirect, of the power to cause the direction of the management and policies of
the corporation, whether through the ownership of voting securities, by contract
or otherwise.

          (b)  "Fair Market Value" shall mean the fair market value of the
Shares as determined by the Committee from time to time in good faith. If a
public market exists for the Shares, the Fair Market Value shall be the average
of the last reported bid and asked prices for Common Stock of the Company on the
last trading day prior to the date of determination or, in the event the Common
Stock of the Company is listed on a stock exchange or is a Nasdaq National
Market security, the Fair Market Value shall be the closing price on such
exchange or system on the last trading day prior to the date of determination.

          (c)  "Nonemployee Director" shall have the meaning set forth in Rule
16b3(b)(3) as promulgated by the Securities and Exchange Commission under
Section 16(b) of the Exchange Act, as such rule is amended from time to time and
as interpreted by the Securities and Exchange Commission.

          (d)  "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if, at the time of the
granting of the Option, each of the corporations other than the Company owns
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

          (e)  "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, at the time of the
granting of the Option, each of the corporations other than the last corporation
in the unbroken chain owns stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

                                       9<PAGE>
                                                                    EXHIBIT 10.3

                 EMPLOYMENT AND STOCK REPURCHASE AGREEMENT FOR
                                JOHN A. PHILLIPS

     THIS EMPLOYMENT AND STOCK REPURCHASE AGREEMENT (this "Agreement"), dated as
of September 17, 1999 (the "Effective Date"), between ARISTOTLE PUBLISHING,
INC., a Delaware corporation (the "Company"), having its principal place of
business located at 205 Pennsylvania Avenue, S.E., Washington, D.C. 20003 and
John A. Phillips, an individual and a founder of the Company (the "Founder").

                                R E C I T A L S

     A.  The Founder is currently serving as the President and a Director of the
Company.

     B.  The parties acknowledge the valuable contributions Founder has made to
the success of the Company, that the Founder's abilities and services are unique
and essential to the continued success of the Company and that future investors
will invest in the Company in partial reliance on the Founder's serving the
Company pursuant to this Agreement.

     C.  In light of the foregoing, the Company desires to employ the Founder as
its Chairman of the Board, Chief Executive Officer and a Director, and the
Founder desires to accept such employment.

                               A G R E E M E N T
                               -----------------

     NOW, THEREFORE, in consideration of the Founder's past services to the
Company, the parties hereto, intending to be legally bound, agree as follows:

     1.  Employment. The Company hereby employs the Founder and the Founder
         ----------
hereby accepts employment upon the terms and conditions hereinafter set forth.

     2.  Duties. The Founder shall be engaged initially with the title and
         ------
functions of Chairman of the Board, Chief Executive Officer and Director and,
subject to the direction of the Board of Directors, shall perform and discharge
faithfully and to the best of his ability the duties, which may be assigned to
him from time to time by the Company in connection with such title and
functions. The Founder shall devote substantially all of his time, attention and
energies to the business of the Company as is reasonably necessary, appropriate
or advisable to carry out the duties assigned to him. During the term of this
Agreement, nothing shall prohibit the Founder from engaging (whether or not
during normal business hours) in any other business or professional activity,
whether or not such activity is pursued for gain, profit or other pecuniary
advantage so long as such activity does not compete, directly or indirectly,
with the Company's business as currently conducted or proposed to be conducted;
including, without limitation, (a) investing his personal assets in businesses
that do not compete with the Company's business as currently conducted or
proposed to be conducted; (b) providing services as a director, consultant or
advisor to businesses that do not compete with the Company's business as
currently conducted

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or proposed to be conducted; (c) purchasing securities in any corporation or
other entity that do not compete with the Company's business as currently
conducted or proposed to be conducted; (d) purchasing securities in any
corporation whose securities are regularly traded (provided that such purchase
shall not result in his collectively owning beneficially at any time five
percent (5%) or more of the equity securities of any corporation engaged in a
business competitive to that of the Company's business as currently conducted or
proposed to be conducted; and (e) engaging in charitable activities,
participating in conferences, preparing or publishing papers or books or
teaching.

     3.  Compensation.  For all services rendered under this Agreement:
         -------------

         (a) The Company shall pay the Founder a base salary ("Base Salary") of
Two Hundred Twenty Thousand Dollars ($220,000) per annum in equal semi-monthly
installments, subject to applicable payroll tax withholding and any applicable
contributions to employee benefit programs. The Board of Directors will review,
at least annually, the Founder's compensation with a view to increasing it if,
in the sole judgment of the Board of Directors, the results of operations of the
Company or the services of the Founder merit such an increase.

         (b) During the term of this Agreement, the Founder shall be entitled
to participate in any and all incentive compensation plans of the Company.

         (c) During the term of his employment, the Founder shall be entitled
to participate in employee benefit plans or programs of the Company, including,
without limitation, any plans or programs for Founders of the Company, subject
to the rules and regulations applicable thereto.

         (d) During the terms of his employment, the Company will lease an
automobile, reasonably satisfactory to Founder, for use by Founder.

         (e) The Founder shall be entitled to prompt reimbursement of all
expenses incurred by him in the performance of his duties, subject to the
presenting of appropriate vouchers in accordance with the Company's policy.

     4.  Term.  This Agreement shall commence on the Effective Date and
         ----
shall terminate as of the earlier of:

         (a) two (2) years from the date hereof (the "Initial Term") unless
either the Founder or the Company notifies the other that he or it elects to
extend the term hereof for an additional one (1) year (the "Renewal Period"),
such notice to be given within 90 days before the end of the Initial Term hereof
or within 90 days before the end of each successive Renewal Period;

         (b)  the death of the Founder;

         (c) thirty (30) days after notice is given by the Company to the
     Founder; or

                                       2
<PAGE>

         (d) thirty (30) days after notice is given by the Founder to the
Company, after a material breach of this Agreement by the Company.

     5.  Proprietary Information.  Founder shall execute and abide by the
         ------------------------
Company's standard form of proprietary information and inventions agreement as
set forth on Exhibit A, the terms of which are hereby incorporated by reference;
provided, however, in the event that the terms of this Agreement conflict with
the terms of such proprietary information and inventions agreement, the terms of
this Agreement shall control.

     6.   Location of Performance: Relocation.
          -----------------------------------

          (a) The Founder's services will be performed in San Francisco,
California or its environs. The parties acknowledge, however, that the Founder
may be required to travel extensively in connection with the performance of his
duties hereunder.

          (b) If the Founder is required to change his place of residence from
San Francisco, California to another location in order to perform hereunder and
the Founder agrees to do so, then Company shall pay all the costs and expenses
of the Founder and his family connected with such relocation, including
reasonable moving and travel expenses and reasonable temporary dwelling costs
(for a period not to exceed 180 days) and costs associated with purchasing and
selling a permanent place of residence, all such expenses not to exceed
$150,000.

     7.  Repurchase Option. Pursuant to this Agreement, One Million Five
         -----------------
Hundred Thousand (1,500,000) shares of Common Stock of the Company owned by
Founder (the "Stock") shall be subject to the repurchase option of the Company
set forth below ("Purchase Option"):

          (a) In the event that either (i) the Founder voluntarily ceases to be
an employee of or associated with the Company or (ii) the Founder is terminated
for Cause (as defined below), then the Company shall have the right at any time
within sixty (60) days after such cessation to exercise its option to repurchase
from the Founder or his personal representative, as the case may be, at the
Founder's cost, up to but not exceeding the number of shares of stock which have
not vested under the provisions of subsection (b) below. Engagement of the
Founder solely as a director, consultant or advisor to the Company shall not be
deemed as cessation of employment or association with the Company. As used
herein, employment with the Company shall include employment with a "parent" or
"subsidiary" of the Company as those terms are defined in Sections 424(e) and
(f) of the Internal Revenue Code of 1986, as amended.

          (b) The Company may exercise its Purchase Option as to the maximum
portion of the Stock specified in the following table:

                                       3
<PAGE>

<TABLE>
<CAPTION>
If employment ceases:                          Stock subject to Purchase Option:
____________________                           ________________________________
----------------------------------------------------------------------------------------------
<S>                                            <C>
At the Effective Date                          750,000 shares
----------------------------------------------------------------------------------------------
From the Effective Date until thirty (30)      750,000 minus (25,000 multiplied by number of
                                                       _____         __________
----------------------------------------------------------------------------------------------
 months after the Effective Date               full months since the Effective Date)
----------------------------------------------------------------------------------------------
Thereafter                                     None
----------------------------------------------------------------------------------------------
</TABLE>

         (c) The Purchase Option shall be exercised by written notice signed by
an officer of the Company or by any assignee or assignees of the Company and
delivered or mailed as provided in Section 11. Such notice shall identify the
number of shares to be purchased and shall notify the Founder of the time, place
and date for settlement of such purchase, which shall be scheduled by the
Company within ninety (90) days from the date of cessation of employment or
association.

         (d) The Founder shall not transfer by sale, assignment, hypothecation,
donation or otherwise any of the Stock or any interest therein subject to the
Purchase Option without the prior express written consent of the issuer of the
shares. The parties agree to execute and deliver such further instruments and
agreements and take such further actions as may reasonably be necessary to carry
out the intent of this Agreement.

         (e) The Company shall not be required (i) to transfer on its books any
shares of Stock of the Company which shall have been transferred in violation of
any of the provisions set forth in this Agreement or (ii) to treat as owner of
such shares or to accord the right to vote as such owner or to pay dividends to
any transferee to whom such shares shall have been so transferred.

         (f) The Founder shall exercise all rights and privileges of a
shareholder of the Company with respect to the Stock.

         (g) This Section 7 shall terminate upon the exercise in full or
expiration of the Purchase Option or the closing of a firm commitment
underwritten public offering of the Company's common stock pursuant to an
effective registration statement under the Securities Act of 1933, as amended,
whichever first occurs.

     8.  Severance.
         ---------

         (a) If the Founder's employment or association with the Company
terminates due to an Involuntary Termination Without Cause at any time after the
Effective Date or a Constructive Termination at any time after a Change in
Control, the Founder shall be entitled to receive the benefits set forth in this
Section 8. As used herein, employment or association with the Company shall
include employment with a "parent" or "subsidiary" of the Company as those terms
are defined in Sections 424(e) and (f) of the Internal Revenue Code of 1986, as
amended.

                                       4
<PAGE>

         (b) Within ten (10) days of Involuntary Termination Without Cause or a
Constructive Termination, the Founder shall receive from the Company the first
of a series of cash payments to occur twice monthly over a four-month period and
which, in the aggregate, shall equal one hundred percent (100%) of the Founder's
then Base Salary plus any other incentive compensation payable to the Founder,
subject to applicable tax withholding.

         (c) Notwithstanding the language of the Founder's option agreement(s)
or any other language to the contrary, the vesting of the Founder's stock
option(s) shall accelerate and immediately become vested and exercisable with
respect to all of those option shares, which otherwise would not be vested and
exercisable on the date of such Founder's Involuntary Termination Without Cause
or Constructive Termination. Notwithstanding any language to the contrary, the
vesting of the Founder's Stock described in Section 7 above shall accelerate and
immediately become vested and the Purchase Option will lapse with respect to all
of Stock, which otherwise would not be vested on the date of the Founder's
Involuntary Termination Without Cause or Constructive Termination.

         (d) The Founder and his covered dependents shall be eligible to
continue their health care benefit coverage as permitted by COBRA (I. R. C.
Section 4980B) at no cost to the Founder and his covered dependents for a period
of twelve (12) months after the Founder's Involuntary Termination Without Cause
or Constructive Termination; provided, however, that payment of such COBRA
premiums by the Company shall cease upon the Founder commencing employment with
a new employer that provides comparable benefits to the Founder and his covered
dependents.

         (e) The Founder shall not be required to mitigate damages or the
amount of any payment provided under this Agreement by seeking other employment
or otherwise, nor shall the amount of any payment provided for under this
Agreement be reduced by any compensation earned by the Founder as a result of
employment by another employer or by any retirement benefits received by the
Founder after the date of the Founder's Involuntary Termination Without Cause or
Constructive Termination.

         (f) Upon the occurrence of the Founder's Involuntary Termination
Without Cause or Constructive Termination, and prior to the receipt of any
benefits under this Agreement on account of such termination, the Founder shall
execute a release for the benefit of the Company in form and substance
reasonably acceptable to the Company and in compliance with applicable law.

         (g) If the Employee has been disabled for a period of at least twelve
(12) months during which period he was disabled for two hundred seventy (270)
consecutive days, the Company may elect, upon notice to the Founder, to pay the
Founder one-half (1/2) of the compensation the Founder would otherwise be
entitled to pursuant to clause (i) above. Disability shall mean the Founder's
inability, due to sickness or injury, to perform effectively his duties
hereunder.

                                       5
<PAGE>

         9.  Registration Rights.  The Founder shall be entitled to those
             -------------------
rights set forth in Section 1.3 (Piggy-back Rights) of that certain Investors'
Rights Agreement, dated as of September 17, 1999 by and among the Company and
its holders of its shares of Series A Preferred Stock (the "IRR"). Capital stock
of the Company now owned or hereinafter acquired by the Founder shall be deemed
Registrable Securities (as defined under the IRR) and the Founder shall be
deemed a Holder (as defined under the IRR) for purposes of Section 1.3. The
Company shall obtain the consents necessary to add the Founder as a party to the
IRR.

         10.  Non-Compete.  For the period of one year after termination of
              ------------
employment (other than for termination without Cause or Constructive
Termination), Founder shall not enter into or engage generally in direct
competition with the Company or its subsidiaries anywhere in the business of
operating, creating, designing, programming, marketing, or selling political
products, professional campaign services, campaign software, advertising, or
databases derived from registered voter lists, for any other person or entity,
including, specifically, but not limited to, any competitor, client, or former
client of the Company, or any governmental entity.

         11.  Assignment: Notices.  This Agreement may not be assigned by any
              -------------------
party hereto. Any notice required or permitted to be given under this Agreement
shall be sufficient if in writing and sent by registered mail to the Founder at
2237 Union Street, San Francisco, CA 94123 or the Company at its address set
forth above, Attention: Secretary.

         12.  Waiver of Breach.  A waiver by the Company or the Founder of a
              ----------------
breach of any provision of this Agreement by the other party shall not operate
or be construed as a waiver of any subsequent breach by the other party.

         13.  Entire Agreement.  This Agreement contains the entire agreement of
              ----------------
the parties with respect to the subject matter hereof, and supersedes any and
all prior agreements relating to the subject matter hereof. It may be changed
only by an agreement in writing signed by a party against whom enforcement of
any waiver, change, modification, extension or discharge is sought.

         14.  Governing Law.  This Agreement shall be governed by, interpreted
              -------------
and construed in accordance with the laws of the State of California without
regard to principles of conflicts of laws. The parties agree that any action
brought by either party to interpret or enforce any provision of this Agreement
shall be brought in, and each party agrees to, and does hereby, submit to the
personal jurisdiction and venue of, the appropriate state or federal court for
the district encompassing the Company's principal place of business.

         15.  Headings:  Counterparts.  The headings of the Sections hereof are
              -----------------------
inserted for convenience only and shall not be deemed to constitute a part
hereof nor to affect the meaning thereof. This Agreement may be executed in one
or more counterparts, each of which shall be an original and all of which taken
together shall constitute one agreement.

         16.  Attorneys Fees.  If either party hereto brings any claim or
              --------------
action to enforce his or its rights hereunder, the prevailing party shall be
entitled to recover from the other party reasonable attorneys fees and costs
incurred in connection with such claim or action, whether or

                                       6
<PAGE>

not a legal proceedings is actually commenced in connection with enforcing such
party's rights hereunder.

     17.  Miscellaneous Definitions.
          -------------------------

          (a) "Cause" shall mean (i) an act of dishonesty by Founder intended to
result in gain or personal enrichment of Founder which causes material harm to
the reputation of the Company; (ii) Founder personally engaging in illegal
conduct which causes material harm to the reputation of the Company; (iii)
Founder's continued failure to substantially perform the duties and obligations
of his employment which are not remedied within twenty (20) days after notice
thereof from the Board of Directors; (iv) Founder being convicted of a felony,
misdemeanor or gross misdemeanor relating to, an act of dishonesty or fraud
against, or a misappropriation of property belonging to, the Company; (v)
Founder's engagement in substance abuse which substantially impairs his ability
to perform the duties and obligations of Founder's employment or causes material
harm to the reputation of the Company; (vi) Founder personally engaging in any
act of moral turpitude that causes material harm to the reputation of the
Company; or (vii) Founder knowingly and intentionally breaching in any material
respect the terms of this Agreement (or any confidentiality agreement or
invention or proprietary information agreement with the Company); provided,
however, Cause shall not include any act or omission undertaken or omitted to be
taken by the Founder that was done so at the direction of the Board of
Directors, or that he believed in good faith at the time was not illegal after
reasonable inquiry; it shall be deemed reasonable and in good faith for the
Founder to rely on advice provided by the Company's legal counsel, with respect
to legal issues, and the Company's accountants, with respect to accounting or
accounting related issues.

          (b) "Change in Control" means the consummation of a merger or
consolidation of the Company with or into another entity or any other corporate
reorganization, if more than 40% of the combined voting power of the continuing
or surviving entity's securities outstanding immediately after such merger,
consolidation or other reorganization is owned by persons who were not
shareholders of the Company immediately prior to such merger, consolidation or
other reorganization; or the sale, transfer other disposition of all or
substantially all of the Company's assets. A transaction shall not constitute a
Change in Control if its sole purpose is to change the state of the Company's
incorporation or to create a holding company that will be owned in substantially
the same proportions by the persons who held the Company's securities
immediately prior to such transaction.

         (c) "Constructive Termination" means that the Founder voluntarily
terminates employment with the Company after any of the following are undertaken
without the Founder's express written consent:

              (i) the assignment to the Founder of any duties or
     responsibilities that result in a material diminution or materially adverse
     change of the Founder's position, status or circumstances or employment;
     provided, however, that a mere change in the Founder's title or reporting
     relationship shall not constitute a Constructive Termination;

                                       7
<PAGE>

              (ii) a reduction by the Company in the Founder's Base Salary;

              (iii)  any failure by the Company to maintain in effect any
     benefit plan, including incentive plans, in which the Founder is
     participating, or the taking of any action by the Company that would
     materially adversely affect the Founder's participation in or reduce the
     Founder's benefits under any of such plans or deprive the Founder of any
     fringe benefit then enjoyed by the Founder; provided, however, that any
     such failure shall not be deemed a Constructive Termination if (A) the
     Company offers a range of benefit plans and programs that taken as a whole
     are comparable to existing benefit plans and programs of the Company, or
     (B) all similarly situated executive officers of the Company are affected
     in the same manner,

              (iv) a relocation of the Founder's business office to a location
     more than twenty-five (25) miles from the location at which the Founder
     performs duties as of the Effective Date, or such other location thereafter
     that the Founder consents to, except for required travel by the Founder
     contemplated in Section 6(a) hereof;

              (v) any material breach of this Agreement by the Company or any
     other agreement between the Founder and the Company that remains uncured
     for twenty (20) days after written notice thereof to the Chairman or any
     two members of the Company's Board of Directors; and

              (vi) after a Change in Control and failure by the Company to
     obtain the assumption by the Company's successor-in-interest or assignee of
     this Agreement or any other material agreement between the Founder and the
     Company relating to the Founder's employment.

         (d)  "Involuntary Termination Without Cause" means the Founder's
dismissal or discharge from the Company other than for Cause. The termination of
the Founder's employment as a result of death or disability will not be deemed
to be an Involuntary Termination Without Cause.

              [REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first hereinabove written.

                              ARISTOTLE PUBLISHING, INC.

                              BY:  /s/ John Phillips
                                   ___________________________________

                                    Name: John Phillips
                                          ____________________________

                                    Title: CEO
                                           ___________________________

                              FOUNDER

                              _________________________________________

                                       9
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first hereinabove written.

                              ARISTOTLE PUBLISHING, INC.

                              BY:
                                   ___________________________________

                                    Name:
                                          ____________________________

                                    Title:
                                           ___________________________

                              FOUNDER

                               /s/ John Phillips
                              _________________________________________

                                       10
<PAGE>
                                   EXHIBIT A

                   FORM OF PROPRIETARY INFORMATION AGREEMENT

                              [see Exhibit 10.13]

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