Document:

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                                                                 EXHIBIT 10.2(8)

                              RETIREMENT AGREEMENT

         This RETIREMENT AGREEMENT (the "Agreement") is entered into as of the
27th day of June, 2001, by and between Belo Corp., a Delaware corporation with
its principal executive offices at 400 South Record Street, Dallas, Texas 75202
("Belo"), and BURL OSBORNE, an individual residing at 4030 Centenary, Dallas,
Texas 75225 ("Osborne").

                                   WITNESSETH:

         WHEREAS, Osborne has made significant contributions to Belo, including
its subsidiaries and affiliates (collectively, the "Companies"), for many years
and is presently serving as Belo's President/Publishing Division and Publisher
of The Dallas Morning News and in a variety of other capacities; and

         WHEREAS, Osborne desires to retire and resign from full-time service to
the Companies; and

         WHEREAS, Osborne's intimate knowledge of the business and affairs of
the Companies is of material value to the Companies;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained:

         Section 1. Scheduled Retirement. Unless Osborne earlier resigns or is
terminated for cause, Osborne shall resign and retire effective December 31,
2001 (the "Retirement Date") from all offices, directorships, committees and
other positions held by him with Belo and its subsidiaries and affiliates,
except that Osborne shall serve as (1) Chairman of The Belo Foundation at the
pleasure of the Foundation's board, (2) a director of Belo at the pleasure of
its

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Board of Directors, but no later than Belo's Annual Meeting in May 2002; (3)
a director of The Providence Journal Company at the pleasure of its Board of
Directors, but no later than May 2002; and (4) Publisher Emeritus of The Dallas
Morning News and as member-of-record of The Associated Press representing The
Dallas Morning News for so long as Osborne serves as Chairman-elect or Chairman
of The Associated Press.

         Section 2. Events Upon Retirement. Osborne's resignation and retirement
shall result in the receipt of additional compensation (to which he would not
otherwise be entitled) and the treatment of his benefits as follows:

         (a)      Additional Compensation. Osborne shall receive additional
                  compensation in the amount of $ 371,082, payable by January
                  15, 2002.

         (b)      Stock Options. The table below sets forth all unexercised
                  options granted to Osborne under the terms of Belo's 1986 Long
                  Term Incentive Plan and 1995 Executive Compensation Plan. Upon
                  the Retirement Date under the terms of the Plans, all of
                  Osborne's unvested options shall vest and shall remain
                  exercisable throughout their respective terms.

<Table>
<Caption>
                                                                Number of
       Date of          Exercise           Number of            Unvested                            Date of
        Grant            Price          Vested Options           Options             Total         Termination
       -------          --------        --------------          ---------            -----         -----------

<S>                     <C>             <C>                     <C>                <C>            <C>
       12/15/93         $12.1875             67,220                  0               67,220         12/15/03
       12/14/94         $13.3438             67,980                  0               67,980         12/14/04
       12/13/95         $17.3750             98,000                  0               98,000         12/13/05
       12/18/96         $17.7500             99,200                  0               99,200         12/18/06
       12/18/96         $17.7500               0                  200,000           200,000         12/18/06
       12/19/97         $26.3750            110,000                  0              110,000         12/19/07
       12/16/98         $17.7500             84,000                36,000           120,000         12/16/08
       12/16/99         $19.1250             80,000               120,000           200,000         12/16/09
</Table>

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         (d)      G. B. Dealey Pension Plan. Osborne shall participate in the G.
                  B. Dealey Retirement Pension Plan as an employee of Belo
                  through the Retirement Date, but not thereafter except as
                  provided under the terms of such Plan.

         (e)      Employee Savings Plan ("401(k) Plan"). Osborne shall
                  participate in the 401(k) Plan as an employee of Belo through
                  the Retirement Date, but not thereafter except as provided
                  under the terms of such Plan.

         (f)      Supplemental Executive Retirement Plan (SERP). Within 30 days
                  of the execution of this Agreement, Osborne shall receive the
                  amount in his vested SERP account as of the Retirement Date,
                  which amount shall be $4,734,301.00.

         (g)      Medical/Dental Coverage. On the Retirement Date, Osborne (as
                  an employee) and his spouse cease to be covered under Belo's
                  medical and dental and other employee benefit plans. By
                  January 15, 2002, Osborne shall receive a separate lump sum
                  payment in the amount of $18,805.99 to assist in defraying the
                  expenses of Osborne and his spouse in obtaining continuing
                  medical coverage.

         (h)      Life Insurance. Osborne's Company-sponsored life insurance
                  shall terminate as of the Retirement Date.

         (i)      Computer and Related Equipment. Osborne shall be entitled to
                  retain the computers, installed software, and related
                  electronic equipment previously provided him by Belo for use
                  in his capacity as chairman of The Belo Foundation and for
                  personal purposes thereafter.

         (j)      Accrued Vacation. By January 15, 2002, Osborne shall receive a
                  cash payment for his accrued but unused vacation, if any.

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         Section 3. Retention as a Consultant. For the period from January 1,
2002 through the last day of the calendar month during which Osborne ceases to
serve as Chairman-Elect or Chairman of The Associated Press (the "Retention
Period"), Osborne shall be available to consult and perform such duties with
respect to the business and affairs of Belo and its subsidiaries and affiliates
on a part-time basis as may be reasonably requested from time to time by the
Chief Executive Officer of Belo (the "CEO"). Osborne shall be given reasonable
advance notice when his advice or services are desired and shall devote such
part of his time to performing such services as shall be reasonably necessary to
perform them effectively; provided, however, that Osborne shall not be required
to render such services during periods where he is unable to do so on account of
illness or other incapacity or other reasonable cause, which shall include
vacation or other business matters. During the Retention Period, the following
provisions shall be applicable:

         (a)      Duties. Osborne shall be required to devote such time to the
                  business and affairs of Belo during regular business hours as
                  may be reasonably necessary to perform the services being
                  requested of him, and shall perform all such services
                  conscientiously, faithfully and in the best interest of Belo.

         (b)      Compensation. Osborne shall receive the following compensation
                  for his performance during the Retention Period: (1)
                  $78,791.66 per month from January 1, 2002 to December 31, 2002
                  and (2) beginning on May 1, 2002 coincident with his election
                  to Chairman of the Associated Press, $8,333 per month until
                  the end of the Retention Period.

         (c)      Nature of Relationship. It is understood and agreed that the
                  relationship of Osborne to Belo shall be that of an
                  independent contractor and not an employee.

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                  Osborne shall have no authority to bind Belo or any of its
                  subsidiaries or affiliates, except with respect to voting in
                  those organizations which Osborne serves at the direction of
                  Belo. Osborne agrees to advise the CEO of, and to follow the
                  instructions of the CEO with respect to voting on any issues
                  material to Belo that arise in such organizations.

         (d)      Expenses. Belo shall reimburse Osborne for those reasonable
                  expenses for travel and entertainment incurred by Osborne in
                  connection with the performance of his duties described in
                  this Section 3, but only to the extent an annual budget for
                  such expenses has been approved in advance by the CEO.

         (e)      Insurance and Benefits. Except as otherwise provided in this
                  Agreement, Belo shall not provide Osborne with, or pay or
                  reimburse Osborne for, any club dues, insurance, or any other
                  benefits that might otherwise have been available to him prior
                  to the Retirement Date.

         Section 4. Confidentiality. Osborne agrees that he shall not, during
the term of this Agreement or at any time thereafter, use or disclose to any
third party other than as required by court order or law or as necessary for the
proper performance of his duties hereunder, any of the confidential dealings or
other confidential or proprietary information concerning the business, finances,
transactions or affairs of the Companies. Osborne hereby certifies that he has
returned or will promptly return all files, records or information of any sort
with respect to such confidential dealings or other confidential or proprietary
information of or concerning the Companies. Osborne acknowledges that, in his
employment with Belo, he acquired confidential and proprietary information of a
highly sensitive nature, and that the protection of this information is critical
to the Companies. Osborne further acknowledges that he received

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sophisticated training and development in the media and communications business
while employed by Belo.

         Section 5. Covenant Not to Compete. In consideration of the promises
and payments made or to be made by Belo pursuant to this Agreement, Osborne
agrees that prior to the end of the Retention Period:

         (a)      Except as approved in writing in advance by the CEO, Osborne
                  will not, as principal, partner, officer, director, agent,
                  employee or consultant or in any other capacity, engage in,
                  assist, or advise any person or firm engaged in any business
                  which competes with a business of the Companies or their
                  affiliates and which persons or firms are located within 100
                  miles of the principal offices of any newspaper, television
                  broadcasting station or cable news service operated by the
                  Companies as of the date of this Agreement. The businesses of
                  the Companies and their affiliates, as of the date of this
                  Agreement include newspaper publishing, television and radio
                  broadcasting, local, state and regional cable news services
                  and Internet sites that focus primarily on news, sports,
                  business, entertainment, weather, local classifieds,
                  directories of local businesses, services and events,
                  community issues or community group or community chatrooms in
                  the respective locations and geographic markets served
                  otherwise by the Companies. For purposes of the 100-mile
                  radius referred to above, the location of competing persons or
                  firms shall be deemed to be the location with which Osborne
                  would actually be working. Nothing in this section shall be
                  deemed to prevent Osborne from owning directly or indirectly
                  any publicly-held securities or other passive investments in
                  any such competing entities. Osborne acknowledges that the

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                  covenants in Sections 4 and 5 will not unreasonably limit his
                  ability to earn a living.

         (b)      No Solicitation. Osborne shall not directly or indirectly for
                  his own account or for the benefit of any other party (i)
                  solicit, induce, or entice any employee or subcontractor of
                  the Companies to terminate his/her employment or contract with
                  the Companies, or (ii) solicit, induce, or entice any customer
                  of the Companies to establish a business relationship with
                  competitors within the geographic markets specified in Section
                  5(a).

         Section 6. Non-Exclusive Remedies. Osborne recognizes and acknowledges
that the Companies would suffer irreparable harm and substantial loss if Osborne
violated any of the terms and provisions of Section 5. Accordingly and because
of the fact that the actual damages which might be sustained by the Companies as
a result of any breach of the foregoing Section 5 would be difficult, if not
impossible, to ascertain, Osborne agrees, at the election of the Companies and
in addition to, and not in lieu of, the Companies' right to seek all other
remedies and damages which the Companies may have at law or in equity for such
breach, that the Companies shall be entitled to injunctive relief restraining
Osborne from violating such terms and provisions of this Agreement. It is the
express intention of the parties to this Agreement to comply with all laws which
may be applicable to this Agreement. Should any restriction contained in Section
5 be found to exceed in duration or scope the restriction permitted by law, it
is expressly agreed that this Agreement may be reformed or modified by the final
judgment of a court of competent jurisdiction to reflect a lawful duration or
scope.
         Additionally, in the event that Osborne breaches any of the terms and
provisions contained in this Agreement, including Section 5, the Companies shall
have the right to cease

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making any further payments or providing any other benefits or consideration
pursuant to Sections 2 and 3.

         Section 7. Publicity/Press Release. Belo and Osborne mutually agree
that each shall refrain from making any public statement that is materially
inconsistent with the press release issued by Belo on May 24, 2001 (the "Press
Release").

         Section 8. Release.

         (a)      Osborne, in consideration of the payments to be made by Belo
                  and the provision of the other benefits herein, hereby
                  irrevocably and unconditionally releases and forever
                  discharges the Companies and their past and present officers,
                  trustees, directors, agents, employees, representatives,
                  successors and assigns, and the Companies, in consideration of
                  the premises and promises made by Osborne, irrevocably and
                  unconditionally release and forever discharge Osborne and his
                  heirs, agents, personal representatives, estate, successors
                  and assigns from any and all suits, actions, charges, causes
                  of action, damages, debts, demands, claims or liabilities of
                  any kind, whatsoever, known or unknown (collectively referred
                  to herein as "Claims"), which a released party has or may have
                  against another released party, for any alleged acts,
                  practices or events occurring prior to the date of this
                  Agreement, or any alleged continuing effects of such acts,
                  practices or events, or any other factors or conditions
                  relating to or arising out of Osborne's employment with Belo,
                  as well as the separation of his employment from Belo; Claims
                  arising under federal, state, or local laws prohibiting
                  employment discrimination such as, without limitation, Title
                  VII of the Civil Rights Act of 1964, the Age Discrimination in
                  Employment Act of 1967 ("ADEA") (for all

                                      -8-
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                  Claims arising through the date Osborne signs this Agreement),
                  the Americans with Disabilities Act, the Equal Pay Act, the
                  Texas Commission on Human Rights Act, and the Family and
                  Medical Leave Act; Claims for breach of contract, excluding
                  breach of this Agreement by Belo, quasi-contract, or wrongful
                  or constructive discharge; Claims for personal injury, harm,
                  or damages (whether intentional or unintentional), including,
                  but not limited to, libel, slander, assault, battery, invasion
                  of privacy, negligent or intentional infliction of emotional
                  distress, or interference with business opportunity or with
                  contracts; Claims arising out of any legal restrictions on
                  Belo's right to terminate its employees; Claims arising under
                  the Employee Retirement Income Security Act; or Claims for
                  salary, vacation pay, sick pay, bonus, severance pay, future
                  pay, compensation of any kind, retirement, health insurance,
                  long-term disability, AD&D, life insurance, or any other
                  employee benefit; provided, however, that no release or
                  discharge is hereby made with respect to (i) the rights and
                  obligations of the Companies and Osborne under this Agreement,
                  or (ii) any Claims arising out of or related to fraud,
                  dishonesty, gross negligence or willful misconduct of Osborne
                  or the Companies. Osborne and the Companies also specifically
                  release the released parties from any claims for attorneys'
                  fees, costs and expenses incurred in connection with this
                  Agreement or any matter herein released. As used herein, the
                  term "released party" or "released parties" means the
                  Companies and their past and present officers, trustees,
                  directors, agents, employees, representatives, successors and
                  assigns, jointly and severally, and Osborne and his heirs,
                  agents, personal representatives, estate, successors and
                  assigns. On the Retirement Date,

                                      -9-
<PAGE>   10

                  Osborne and the Companies shall each execute and deliver to
                  the other an updated release substantially in the form
                  attached hereto.

         (b)      In order to comply with the Older Workers' Benefit Protection
                  Act, it is necessary that Belo advise Osborne that he should
                  consult with an attorney prior to executing this Agreement and
                  that the offer evidenced by this Agreement be extended for a
                  period of 21 days during which Osborne may consider whether to
                  accept or reject the offer. As part of this Agreement, Osborne
                  is asked to specifically waive any and all rights and claims
                  arising under the ADEA. By his execution of this Agreement,
                  Osborne acknowledges that (i) he has carefully read this
                  Agreement, understands its terms and their legal effect, and
                  has had the opportunity to have it reviewed by an attorney;
                  (ii) Osborne or his attorney has made such investigation of
                  the facts pertaining to this Agreement (including the release)
                  as may be necessary; and (iii) Osborne understands that he has
                  the right within seven days after his signing this Agreement
                  to revoke his execution of this Agreement to the extent that
                  this Agreement waives or releases all rights and claims under
                  the ADEA. If Osborne so revokes his execution of this
                  Agreement, the Agreement shall nevertheless remain in effect
                  for all other purposes; provided, however that the payments to
                  be made under Section 2(a) shall be in the amount of $10,000
                  and no payments shall be made under Section 3(b).

         (c)      Notwithstanding Sections 8(a) and (b) above, Osborne shall be
                  entitled to the same rights to and benefits of indemnification
                  and directors and officers insurance coverage to the extent
                  provided current directors and officers of the Companies, and
                  this Agreement shall not release or discharge any of such
                  rights or benefits.

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         Section 9. Arbitration Agreement. The parties hereto do not intend any
provision of this Agreement to modify their existing Arbitration Agreement dated
April 29, 1995.

         Section 10. Miscellaneous. This Agreement represents the entire
understanding and agreement between the parties with respect to the subject
matter hereof and supersedes all prior agreements, written or oral, with respect
thereto. This Agreement shall be construed in accordance with and governed by
the laws of the State of Texas applicable to agreements made and to be performed
entirely within such state. The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties and their respective heirs,
executors, administrators, successors and permitted assigns. Osborne shall not
encumber or dispose of the right to receive any payment or benefit under this
Agreement, such rights hereunder being expressly agreed to be non-assignable and
non-transferable, and in the event of any attempted assignments or transfer, the
Companies shall have no further liability hereunder; provided that, the
foregoing prohibitions will not apply to any transfer resulting from the death
of Osborne. No waiver, alteration or modification of any of the provisions of
this Agreement shall be valid unless the same shall be in writing and signed by
the parties hereto. Should Osborne die between the date of this agreement and
the termination of the Retention Period, all unpaid amounts under this agreement
shall remain payable to his estate, except for payments to be made under clause
(2) of Section 3(b).

         Section 11. Taxes; Securities Laws. Osborne agrees that Belo is
obligated to deduct and withhold certain amounts payable by Belo to Osborne
pursuant to this Agreement for taxes and other amounts required by law on
account of the compensation and other benefits described in this Agreement.
Osborne also agrees that he will comply with all provisions of the federal
securities laws, to the extent still applicable, in trading of Belo's securities
referenced herein.

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         Section 12. Further Assurances. From time to time after the execution
of this Agreement, each of Belo and Osborne will execute and deliver such other
documents and take such other actions as the other party to this Agreement
reasonably may request in order to effect the transactions contemplated hereby.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date set forth above.

                                         BELO CORP.

/s/ Burl Osborne                     By: /s/ Robert W. Decherd
-----------------------------            --------------------------------------
Burl Osborne                             Robert W. Decherd
                                         Chairman of the Board, President and
                                         Chief Executive Officer

                                      -12-Corporate Executive Board Company 2001 Stock Plan

EXHIBIT 10.1

THE CORPORATE EXECUTIVE BOARD COMPANY

2001 STOCK OPTION PLAN

	1.	 	Purpose

      The purpose of The Corporate Executive Board Company 2001 Stock Option
Plan (the “Plan”) is to provide Participants with an increased economic and
proprietary interest in the Company in order to encourage those Participants to
contribute to the success and progress of the Company. The Plan provides for
the grant of Options which shall qualify as incentive stock options, as defined
in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”),
and for the grant of Options which shall not qualify as incentive stock options
pursuant to Section 422 of the Code.

	2.	 	Definitions

      (a)   "Administrator” means the Administrator of the Plan in accordance with
Section 11.

      (b)   "Board of Directors” means the Board of Directors of the Company.

      (c)   "Common Stock” means the Company’s common stock, par value $.01,
subject to adjustment as provided in Section 8.

      (d)   "Company” means The Corporate Executive Board Company, a Delaware
corporation.

      (e)   "ISOs” shall mean Options which qualify as incentive stock options
within the meaning of Section 422 of the Code.

      (f)   "Options” shall mean stock options granted pursuant to the Plan.

      (g)   "Participants” shall mean those individuals described in Section 3 to
whom Options have been granted from time to time by the Administrator and any
authorized transferee of such individuals.

      (h)   "Plan” means The Corporate Executive Board Company 2001 Stock Option
Plan.

      (i)   "Retirement” shall have the meaning specified by the Administrator in
the terms of an option grant or, in the absence of any such term, shall mean
retirement from active employment with the Company or its Subsidiaries (i) at
or after age 55 and with the approval of the Administrator or (ii) at or after
age 65. The determination of the Administrator as to an individual’s
Retirement shall be conclusive on all parties.

      (j)   "Subsidiary” means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company where each of the
corporations in the unbroken chain other than the last corporation owns stock
possessing at least 50 percent or more

 

 of the total combined voting power of all classes of stock in one of the
other corporations in the chain.

      (k)   "Total and Permanent Disablement” shall have the meaning specified by
the Administrator in the terms of an option grant or, in the absence of any
such term or in the case of an Option intending to qualify as an ISO, the
inability to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or which has lasted or can be expected to last for a continuous
period of not less than 12 months. The determination of the Administrator as
to an individual’s Total and Permanent Disablement shall be conclusive on all
parties.

	3.	 	Participants

      Options may be granted to any person who is an employee or prospective
employee of the Company or any of its affiliates. For purposes of this Section
3, the term “employee” shall mean an “employee,” as such term is defined in
General Instruction A to Form S-8 under the Securities Act of 1933, as amended.
Options intending to qualify as ISOs may only be granted to employees of the
Company and its Subsidiaries within the meaning of the Code, as selected by the
Administrator. For purposes of this Plan, the Chairman of the Board’s status
as an employee shall be determined by the Board of Directors. Options may not
be granted to directors of the Company or its Subsidiaries unless such
directors otherwise qualify for participation in the Plan.

	4.	 	Effective Date and Termination of Plan

      This Plan was adopted by the Board of Directors of the Company as of May
7, 2001 (the “Effective Date”). The Plan shall remain available for the grant
of Options until the tenth anniversary of the Effective Date. Notwithstanding
the foregoing, the Plan may be terminated at such earlier time as the Board of
Directors may determine. Termination of the Plan will not affect the rights
and obligations of the Participants and the Company arising under Options
theretofore granted and then in effect.

	5.	 	Shares Subject to the Plan and to Options

      The aggregate number of shares of Common Stock issuable pursuant to all
Options granted under the Plan will not exceed 2,700,000 shares of the
Company’s Common Stock, or the number and kind of shares of stock or other
securities which shall be substituted or adjusted for such shares as provided
in Section 8. Such shares may be authorized and unissued shares of the
Company’s Common Stock. The aggregate number of shares of Common Stock issued
pursuant to the Plan at any time shall equal only the number of shares of
Common Stock issued upon the exercise of Options and not returned to the
Company upon the cancellation, expiration or forfeiture of an award or
delivered (either actually or by attestation) in payment or satisfaction of the
purchase price or tax obligation with respect to an Option. All shares of
Common Stock available for issuance under the Plan may be subject to Options
which intend to qualify as ISOs.

	6.	 	Grant, Terms and Conditions of Options

      Options may be granted at any time and from time to time prior to the
termination of the Plan, to Participants selected by the Administrator. No
Participant shall have any rights as a stockholder with respect to any shares
of stock subject to Option hereunder until said shares have been issued. Each
Option shall be evidenced by a written stock option agreement and/or such other
written arrangements as may be approved from time to time by the Administrator.
Options granted pursuant to the Plan need not be identical but each Option
must contain and be subject to the following terms and conditions:

 

		
	 	      (a) Price: The purchase price under each Option shall be
established by the Administrator, provided that in no event will the
purchase price be less than the fair market value of the Common Stock on
the date of grant, except for Options that the Participant pays for or as
to which the Participant foregoes other compensation equal in value to
the amount of such discount. Notwithstanding the foregoing, in the case
of the grant of an Option intending to qualify as an ISO, if the
Participant owns stock possessing more than 10 percent of the combined
voting power of all classes of stock of the Company or its Subsidiaries
(after applying the ownership attribution rules set forth under Section
422(d) of the Code and any successor provision), the purchase price of
such Option must be no less than 110 percent of the fair market value of
the Common Stock on the date of grant.

		
	 	The purchase price of any Option may be paid in cash or any
alternative means acceptable to the Administrator, including an
irrevocable commitment by a broker to pay over such amount from a
sale of the shares issuable under an Option and the acceptance of a
promissory note secured by the number of shares of Common Stock
then issuable upon exercise of the Options.

		
	 	      (b) Duration and Exercise or Termination of Option: Unless the
Administrator provides otherwise, (i) Options shall become exercisable 25
percent per year beginning one year after the date of the grant, provided
that in no event shall any Option become exercisable sooner than one (1)
year after the date of grant except in the event of the Participant’s
death or Total and Permanent Disablement or a change in control (as
defined in the applicable Option agreement); and (ii) each Option shall
expire within a period of not more than ten (10) years from the date of
grant. Notwithstanding the foregoing, in the case of the grant of an
Option intending to qualify as an ISO, if the Participant owns stock
possessing more than 10 percent of the combined voting power of all
classes of stock of the Company or its Subsidiaries (after applying the
ownership attribution rules set forth under Section 422(d) of the Code
and any successor provision), the Option must expire within a period of
not more than five (5) years from the date of grant. Unless provided
otherwise in the agreement evidencing an Option, the vesting period
and/or exercisability of an Option shall be adjusted by the Administrator
during or to reflect the effects of any period during which the
Participant is on an approved leave of absence or is employed on a less
than full time basis, provided that no such adjustment may be made which
would result in an accounting charge to the Company.

		
	 	      (c) Suspension or Termination of Option: Except as otherwise
provided by the Administrator, if at any time (including after a notice
of exercise has been delivered) the Chief Executive Officer or any other
person designated by the Administrator (each such person, an “Authorized
Officer”) reasonably believes that a Participant may have committed an
act of misconduct as described in this Section, the Authorized Officer
may suspend the Participant’s rights to exercise any Option pending a
determination of whether an act of misconduct has been committed.

		
	 	      Except as otherwise provided by the Administrator, if the
Administrator or an Authorized Officer determines a Participant has
committed an act of embezzlement, fraud, dishonesty, nonpayment of any
obligation owed to the Company or its Subsidiaries, breach of fiduciary
duty or deliberate disregard of the Company or Subsidiary rules resulting
in loss, damage or injury to the Company or its Subsidiaries, or if a
Participant makes an unauthorized disclosure of any Company or Subsidiary
trade secret or confidential information, engages in any conduct
constituting unfair competition, breaches any non-competition agreement,
induces any Company or Subsidiary customer to breach a contract with the
Company or its Subsidiaries, or induces any principal for whom the
Company or its Subsidiaries acts as agent to terminate such

 

		
	 	agency relationship (any of the foregoing acts, an “act of
misconduct”), neither the Participant nor his or her estate nor
transferee shall be entitled to exercise any Option whatsoever. In
making such determination, the Administrator or an Authorized Officer
shall act fairly and shall give the Participant an opportunity to appear
and present evidence on his or her behalf at a hearing before the
Administrator or the Board of Directors. For any Participant who is an
“executive officer” for purposes of Section 16 of the Securities Exchange
Act of 1934, the determination of the Authorized Officer shall be subject
to the approval of the Administrator.

		
	 	      (d) Termination of Employment: Unless an Option earlier expires
upon the expiration date established pursuant to Section 6(b)(ii), upon
the termination of the Participant’s employment, his or her rights to
exercise an Option then held shall be only as follows, unless the
Administrator specifies otherwise:

		
	 	      (1) Death. Upon the death of a Participant while in the
employ of the Company or its Subsidiaries, all of the Participant’s
Options then held shall be exercisable by his or her estate, heir
or beneficiary at any time during the twelve (12) months next
succeeding the date of death. Any and all of the deceased
Participant’s Options that are not exercised during the twelve (12)
months next succeeding the date of death shall terminate as of the
end of such twelve (12) month period.

		
	 	If a Participant should die within thirty (30) days of his or
her termination of employment with the Company or its
Subsidiaries, an Option shall be exercisable by his or her
estate, heir or beneficiary at any time during the twelve
(12) months succeeding the date of termination, but only to
the extent of the number of shares as to which such Option
was exercisable as of the date of such termination. Any and
all of the deceased Participant’s Options that are not
exercised during the twelve (12) months succeeding the date
of termination shall terminate as of the end of such twelve
(12) month period. A Participant’s estate shall mean his or
her legal representative or other person who so acquires the
right to exercise the Option by bequest or inheritance or by
reason of the death of the Participant.

		
	 	      (2) Total and Permanent Disablement. Upon termination as a
result of the Total and Permanent Disablement of any Participant,
all of the Participant’s Options then held shall be exercisable for
a period of twelve (12) months after termination. Any and all
Options that are not exercised during the twelve (12) months
succeeding the date of termination shall terminate as of the end of
such twelve (12) month period.

		
	 	      (3) Retirement. Upon Retirement of a Participant, the
Participant’s Options then held shall be exercisable for a period
of twelve (12) months after Retirement. The number of shares with
respect to which the Options shall be exercisable shall equal the
total number of shares which were exercisable under the
Participant’s Option on the date of his or her Retirement. Any and
all Options that are unexercised during the twelve (12) months
succeeding the date of termination shall terminate as of the end of
such twelve (12) month period. Notwithstanding the foregoing, in
order to obtain ISO tax treatment for any Option that otherwise
qualifies as an ISO, the Participant must exercise such Option
within three (3) months after Retirement, after which time the
Option shall cease to qualify for tax treatment as an ISO.

 

		
	 	      (4) Other Reasons. Upon the date of a termination of a
Participant’s employment for any reason other than those stated
above in Sections 6(d)(1), (d)(2) and (d)(3) or as described in
Section 6(c) above, (A) any Option that is unexercisable as of such
termination date shall remain unexercisable and shall terminate as
of such date, and (B) any Option that is exercisable as of such
termination date shall expire the earlier of (i) ninety (90) days
following such date or (ii) the expiration date of such Option.

		
	 	      (5) Termination of Employment. The term “termination of
employment” shall mean ceasing to serve as a full time employee of
the Company, except that an approved leave of absence or approved
employment on a less than full time basis may constitute employment
unless the Administrator provides otherwise. The Administrator
shall determine whether any corporate transaction, such as a sale
or spin-off of a division or subsidiary that employs a Participant,
shall be deemed to result in a termination of employment with the
Company for purposes of any affected Participant’s Options, and the
Administrator’s decision shall be final and binding.

		
	 	      (e) Transferability of Option: Unless the Administrator specifies
otherwise, each Option shall be nontransferable by the Participant other
than by will or the laws of descent and distribution and shall be
exercisable only by the Participant during his or her lifetime.

		
	 	      (f) No Repricing. Without the approval of stockholders, the Company
shall not reprice any Options. For purposes of this Plan, the term
“reprice” shall mean lowering the exercise price of previously awarded
Options within the meaning of Item 402(i) under Securities and Exchange
Commission Regulation S-K (including canceling previously awarded Options
and regranting them with a lower exercise price).

		
	 	      (g) Conditions and Restrictions Upon Securities Subject to Options:
The Administrator may provide that the shares of Common Stock issued upon
exercise of an Option shall be subject to such further agreements,
restrictions, conditions or limitations as the Administrator in its
discretion may specify prior to the exercise of such Option, including
without limitation, conditions on vesting or transferability, forfeiture
or repurchase provisions and method of payment for the shares issued upon
exercise (including the actual or constructive surrender of Common Stock
already owned by the Participant). Without limiting the foregoing, such
restrictions may address the timing and manner of any resales by the
Participant or other subsequent transfers by the Participant of any
shares of Common Stock issued as a result of the exercise of the Option,
including without limitation (a) restrictions under an insider trading
policy, (b) restrictions designed to delay and/or coordinate the timing
and manner of sales by Participant and other optionholders, and (c)
restrictions as to the use of a specified brokerage firm for such resales
or other transfers. The Administrator may establish rules for the
deferred delivery of Common Stock upon exercise of an Option with the
deferral evidenced by use of “Stock Units” equal in number to the number
of shares of Common Stock whose delivery is so deferred. A “Stock Unit”
is a bookkeeping entry representing an amount equivalent to the fair
market value of one share of Common Stock. Unless the Administrator
specifies otherwise, Stock Units represent an unfunded and unsecured
obligation of the Company. Settlement of Stock Units upon expiration of
the deferral period shall be made in Common Stock or otherwise as
determined by the Administrator. The amount of Common Stock, or other
settlement medium, to be so distributed may be increased by an interest
factor or by dividend equivalents. Until a Stock Unit is so settled, the
number of shares of Common Stock represented by a Stock Unit shall be
subject to adjustment pursuant to Section 8. Any Stock Units that are
settled after the holder’s death shall be

 

		
	 	distributed to the holder’s designated beneficiary(ies) or, if none
was designated, the holder’s estate.

		
	 	      (h) Other Terms and Conditions; Tax Code Limitations: Options may
also contain such other provisions, which shall not be inconsistent with
any of the foregoing terms, as the Administrator shall deem appropriate.
No Option, however, nor anything contained in the Plan shall confer upon
any Participant any right to continue in the Company’s or its
Subsidiaries’ employ or service nor limit in any way the Company’s or its
Subsidiaries’ right to terminate his or her employment at any time. In
the case of Options intending to qualify as ISOs, Section 422 of the Code
provides that Options shall not be treated as ISOs if and to the extent
that the aggregate fair market value of shares of Common Stock
(determined as of the time of grant) with respect to which such Options
are exercisable for the first time by the Participant during any calendar
year (under all plans of the Company and its subsidiaries) exceeds
$100,000, taking Options into account in the order in which they were
granted. For purposes of qualifying as “performance based compensation”
under Code Section 162(m), the aggregate number of shares of Common Stock
subject to Options granted pursuant to the Plan during any calendar year
to any one Participant shall not exceed 500,000 shares.

	7.	 	Loans

      The Company may make loans, at the request of the Participant and in the
sole discretion of the Administrator, for the purpose of enabling the
Participant to exercise Options granted under the Plan and to pay the tax
liability resulting from an Option exercised under the Plan. The Administrator
shall have full authority to determine the terms and conditions of such loans.
Such loans may be secured by the shares received upon exercise of such Option.

	8.	 	Adjustment and Changes in the Stock

      In the event that the number of shares of Common Stock of the Company
shall be increased or decreased through reorganization, reclassification,
combination of shares, stock splits, reverse stock splits, spin-offs, or the
payment of a stock dividend, (other than regular, quarterly cash dividends) or
otherwise, then each share of Common Stock of the Company which has been
authorized for issuance under the Plan, whether such share is then currently
subject to or may become subject to an Option under the Plan, may be
proportionately adjusted to reflect such increase or decrease, unless the terms
of the transaction provide otherwise. Outstanding Options may also be amended
as to price and other terms if necessary to reflect the foregoing events.

      In the event there shall be any other change in the number or kind of the
outstanding shares of Common Stock of the Company, or any stock or other
securities into which such Common Stock shall have been changed, or for which
it shall have been exchanged, whether by reason of merger, consolidation or
otherwise, then the Administrator shall, in its sole discretion, determine the
appropriate adjustment, if any, to be effected. In addition, in the event of
such change described in this paragraph, the Administrator may accelerate the
time or times at which any Option may be exercised and may provide for
cancellation of such accelerated Options which are not exercised within a time
prescribed by the Administrator in its sole discretion. Notwithstanding
anything to the contrary herein, any adjustment to Options granted pursuant to
this Plan, particularly Options intending to qualify as ISOs, shall comply with
the requirements, provisions and restrictions of the Code.

      No right to purchase fractional shares shall result from any adjustment in
Options pursuant to this Section 8. In case of any such adjustment, the shares
subject to the Option shall be rounded down to the nearest whole share. Notice
of any adjustment shall be given by the

 

 Company to each Participant which shall have been so adjusted and such
adjustment (whether or not notice is given) shall be effective and binding for
all purposes of the Plan.

	9.	 	Listing or Qualification of Stock

      In the event that the Board of Directors or the Administrator determines
in its discretion that the listing or qualification of the Plan shares on any
securities exchange or quotation or trading system or under any applicable law
or governmental regulation is necessary as a condition to the issuance of such
shares under the Option, the Option may not be exercised in whole or in part
unless such listing, qualification, consent or approval has been
unconditionally obtained.

	10.	 	Withholding

      To the extent required by applicable federal, state, local or foreign law,
a Participant shall be required to satisfy, in a manner satisfactory to the
Company, any withholding tax obligations that arise by reason of an Option
exercise or a disqualifying disposition of shares issued upon exercise of an
ISO. The Company shall not be required to issue shares or to recognize the
disposition of such shares until such obligations are satisfied. The
Administrator may permit these obligations to be satisfied by having the
Company withhold a portion of the shares of stock that otherwise would be
issued to him or her upon exercise of the Option, or to the extent permitted,
by tendering shares previously acquired, provided that such will not result in
an accounting charge to the Company or its Subsidiaries.

	11.	 	Administration of the Plan

      The Plan shall be administered by the Administrator who shall be the
Compensation Committee of the Board of Directors or, in the absence of a
Compensation Committee, the Board of Directors itself. Subject to the express
provisions of this Plan, the Administrator shall be authorized and empowered to
do all things necessary or desirable in connection with the administration of
this Plan, including, without limitation: (a) to prescribe, amend and rescind
rules and regulations relating to this Plan and to define terms not otherwise
defined herein; (b) to determine which persons are Participants (as defined in
Section 3 hereof) and to which of such Participants, if any, an Option shall be
granted hereunder and the timing of any such Option grants; (c) to determine
the number of shares of Common Stock subject to an Option and the exercise or
purchase price of such shares; (d) to establish and verify the extent of
satisfaction of any conditions to exercisability applicable to an Option; (e)
to waive conditions to and/or accelerate exercisability of an Option, either
automatically upon the occurrence of specified events (including in connection
with a change of control of the Company) or otherwise in its discretion; (f) to
prescribe and amend the terms of Option grants made under this Plan (which need
not be identical); (g) to determine whether, and the extent to which,
adjustments are required pursuant to Section 8 hereof; and (h) to interpret and
construe this Plan, any rules and regulations under the Plan and the terms and
conditions of any Option granted hereunder, and to make exceptions to any such
provisions in good faith and for the benefit of the Company or its
Subsidiaries.

      All decisions, determinations and interpretations by the Administrator
regarding the Plan, any rules and regulations under the Plan and the terms and
conditions of any Option granted hereunder, shall be final and binding on all
Participants and optionholders. The Administrator shall consider such factors
as it deems relevant, in its sole and absolute discretion, to making such
decisions, determinations and interpretations including, without limitation,
the recommendations or advice of any officer or other employee of the Company
and such attorneys, consultants and accountants as it may select.

 

      The Administrator may, from time to time, delegate some of its
responsibilities with respect to the administration of the Plan to such persons
as it may designate in its sole discretion but may not delegate authority to
grant Options to a person who is not a member of the Board of Directors. All
actions by such persons shall be treated as if taken by the Administrator.

	12.	 	Amendment of the Plan or Options

      The Board may amend, alter or discontinue this Plan or any agreement or
other document evidencing an Award made under this Plan but, except as provided
pursuant to the provisions of Section 8, no such amendment shall, without the
approval of the stockholders of the Company:

		
	 	      (a) materially increase the maximum number of shares of Common Stock
for which Options may be granted under this Plan;

		
	 	      (b) reduce the price at which Options may be granted below the price
provided for in Section 6(a);

		
	 	      (c) reduce the exercise price of outstanding Options; or

		
	 	      (d) extend the term of this Plan.

      The Board may amend, alter or discontinue the Plan and the Administrator
may amend or alter any Option granted under the Plan, but no amendment or
alteration shall be made which would impair the rights of the holder of any
Option, without such holder’s consent, provided that no such consent shall be
required if the Administrator determines in its sole discretion and prior to
the date of any change in control (as defined, if applicable, in the agreement
evidencing such Option) that such amendment or alteration either is required or
advisable in order for the Company, the Plan or the Option to satisfy any law
or regulation or to meet the requirements of or avoid adverse financial
accounting consequences under any accounting standard.

	13.	 	Time of Granting Options

      The effective date of such Option shall be the date on which the grant was
made by the Administrator. Within a reasonable time thereafter, the Company
will deliver the Option to the Participant.

	14.	 	No Liability of Company

      The Company and any affiliate which is in existence or hereafter comes
into existence shall not be liable to a Participant or any other person as to:
(a) the non-issuance or sale of shares of Common Stock as to which the Company
has been unable to obtain from any regulatory body having jurisdiction the
authority deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any shares hereunder; and (b) any tax consequence
expected, but not realized, by any Participant or other person due to the
receipt, exercise or settlement of any Option granted hereunder.

	15.	 	Non-Exclusivity of Plan

      Neither the adoption of this Plan by the Board of Directors nor the
submission of this Plan to the stockholders of the Company for approval shall
be construed as creating any limitations on the power of the Board of Directors
or the Administrator to adopt such other incentive arrangements as either may
deem desirable, including without limitation, the granting of restricted stock
or stock options otherwise than under this Plan, and such arrangements may be
either generally applicable or applicable only in specific cases.

 

	16.	 	Governing Law

      This Plan and any agreements or other documents hereunder shall be
interpreted and construed in accordance with the laws of the District of
Columbia and applicable federal law. Any reference in this Plan or in the
agreement or other document evidencing any Options to a provision of law or to
a rule or regulation shall be deemed to include any successor law, rule or
regulation of similar effect or applicability.

	17.	 	Arbitration of Disputes

      In the event a Participant or other holder of an Option believes that a
decision by the Administrator with respect to such person was arbitrary or
capricious, the Participant or optionholder may request arbitration with
respect to such decision. The review by the arbitrator shall be limited to
determining whether the Administrator’s decision was arbitrary or capricious.
This arbitration shall be the sole and exclusive review permitted of the
Administrator’s decision. Participants and optionholders explicitly waive any
right to judicial review.

      Notice of demand for arbitration shall be made in writing to the
Administrator within 30 days after the applicable decision by the
Administrator. The arbitrator shall be selected by those members of the Board
of Directors who are neither members of the Compensation Committee of the Board
of Directors nor employees of the Company. If there are no such members of the
Board of Directors, the arbitrator shall be selected by the Board of Directors.
The arbitrator shall be an individual who is an attorney licensed to practice
law in the District of Columbia. Such arbitrator shall be neutral within the
meaning of the Commercial Rules of Dispute Resolution of the American
Arbitration Association; provided, however, that the arbitration shall not be
administered by the American Arbitration Association. Any challenge to the
neutrality of the arbitrator shall be resolved by the arbitrator whose decision
shall be final and conclusive. The arbitration shall be administered and
conducted by the arbitrator pursuant to the Commercial Rules of Dispute
Resolution of the American Arbitration Association. The decision of the
arbitrator on the issue(s) presented for arbitration shall be final and
conclusive and may be enforced in any court of competent jurisdiction.

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