Document:

exv10w1

 

Exhibit
10.1

THE CORPORATE EXECUTIVE BOARD COMPANY

STANDARD TERMS AND CONDITIONS FOR

RESTRICTED STOCK UNITS

These Standard Terms and Conditions apply to any Award of restricted stock units granted to an
employee of the Company after January 1, 2006 under The Corporate Executive Board Company 2004
Stock Incentive Plan (the “Plan”), which are evidenced by a Term Sheet or an action of the
Administrator that specifically refers to these Standard Terms and Conditions.

	1.	 	TERMS OF RESTRICTED STOCK UNITS
	 
	 	 	THE CORPORATE EXECUTIVE BOARD COMPANY, a Delaware corporation (the “Company”), has granted
to the Participant named in the Term Sheet provided to said Participant herewith (the “Term
Sheet”) an award of a number of restricted stock units (the “Award”) specified in the Term
Sheet. Each restricted stock unit represents the right to receive one share of the
Company’s Common Stock, $0.01 par value per share (the “Common Stock”), upon the terms and
subject to the conditions set forth in the Term Sheet, these Standard Terms and Conditions,
and the Plan, each as amended from time to time. For purposes of these Standard Terms and
Conditions and the Term Sheet, any reference to the Company shall, unless the context
requires otherwise, include a reference to any Subsidiary, as such term is defined in the
Plan.
	 
	2.	 	VESTING OF RESTRICTED STOCK UNITS
	 
	 	 	The Award shall not be vested as of the Grant Date set forth in the Term Sheet and shall be
forfeitable unless and until otherwise vested pursuant to the terms of the Term Sheet and
these Standard Terms and Conditions. After the Grant Date, subject to termination or
acceleration as provided in these Standard Terms and Conditions and the Plan, the Award
shall become vested as described in the Term Sheet with respect to that number of restricted
stock units as set forth in the Term Sheet; provided that (except as set forth in Section 5
below) the Participant does not experience a Termination of employment (as defined in the
Plan). Each date on which restricted stock units subject to the Award vest is referred to
herein as a “Vesting Date.” Notwithstanding anything herein or in the Term Sheet to the
contrary, if a Vesting Date is not a business day, the applicable portion of the Award shall
vest on the next following business day. Restricted stock units granted under the Award
that have vested and are no longer subject to forfeiture are referred to herein as “Vested
Units.” Restricted stock units granted under the Award that are not vested and remain
subject to forfeiture are referred to herein as “Unvested Units.” The vesting period of an
Award may be adjusted by the Administrator to reflect the decreased level of employment
during any period in which the Participant is on an approved leave of absence or is employed
on a less than full time basis, provided that the Administrator may take into consideration
any accounting consequences to the Company in making any such adjustment.

	3.	 	SETTLEMENT OF RESTRICTED STOCK UNITS
	 
	 	 	Each Vested Unit will be settled by the delivery of one share of Common Stock (subject to
adjustment under Section 12 of the Plan) to the Participant or, in the event of the
Participant’s death, to the Participant’s estate, heir or beneficiary, following the
applicable Vesting Date; provided that the Participant has satisfied all of the tax
withholding obligations described in Section 7 below, and that the Participant has
completed, signed and returned any documents and taken any additional action that the
Company deems appropriate to enable it to accomplish the delivery of the shares of Common
Stock. The issuance of the shares of Common Stock hereunder may be effected by the issuance
of a stock certificate, recording shares on the stock records of the Company or by crediting
 shares in an account established on the Participant’s behalf with a brokerage firm or other
custodian, in each case as determined by the Company. Fractional shares will not be issued
pursuant to the Award.
	 
	 	 	Notwithstanding the above, (i) for administrative or other reasons, the Company may from
time to time temporarily suspend the issuance of shares of Common Stock in respect of Vested
Units, (ii) the Company shall not be obligated to deliver any shares of the Common Stock
during any period when the Company determines that the delivery of shares hereunder would
violate any federal, state or other applicable laws, (iii) the Company may issue shares of
Common Stock hereunder subject to any restrictive legends that, as determined by the
Company’s counsel, are necessary to comply with securities or other regulatory requirements,
(iv) the date on which shares are issued hereunder may include a delay in order to provide
the Company such time as it determines appropriate to address tax withholding and other
administrative matters, and (v) shares shall not be issued or issuable pursuant to this
provision to the extent of any deferral pursuant to a deferred compensation program that the
Company has made available for purposes of allowing deferral of such shares.
	 
	4.	 	RIGHTS AS STOCKHOLDER
	 
	 	 	Prior to any issuance of shares of Common Stock in settlement of the Award, no shares of
Common Stock will be reserved or earmarked for the Participant or the Participant’s account
nor shall the Participant have any of the rights of a stockholder with respect to such
shares. The Participant will not be entitled to any privileges of ownership of the shares of
Common Stock (including, without limitation, any voting or dividend rights) underlying
Vested Units and/or Unvested Units unless and until shares of Common Stock are actually
delivered to the Participant hereunder.
	 
	5.	 	TERMINATION OF EMPLOYMENT
	 
	 	 	Upon the date of the Participant’s Termination of employment (as defined in the Plan) for
any reason, except as provided in this Section 5, all Unvested Units shall be forfeited by
the Participant and cancelled and surrendered to the Company without payment of any
consideration to the Participant. Notwithstanding the foregoing, if within one year after a
Change in Control (as defined in Section 19 hereof) of the Company the Participant’s incurs
a Termination of employment for any reason other than for Cause (as defined in Section 19 hereof) or voluntary resignation by the Participant, the Award shall be deemed to
have become fully vested immediately prior to such Termination of employment.

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	6.	 	RESTRICTIONS ON RESALES OF SHARES
	 
	 	 	The Company may impose such restrictions, conditions or limitations as it determines
appropriate as to the timing and manner of any resales by the Participant or other
subsequent transfers by the Participant of any shares of Common Stock issued in respect of
Vested Units, 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 holders and (c) restrictions as to the use of a specified brokerage
firm for such resales or other transfers.
	 
	7.	 	INCOME TAXES
	 
	 	 	The Participant will be subject to federal and state income and other tax withholding
requirements on a date (generally, the Vesting Date) determined by applicable law (any such
date, the “Taxable Date”), based on the fair market value of the shares of Common Stock
underlying the Vested Units that vest. The Participant will be solely responsible for the
payment of all U.S. federal income and other taxes, including any state, local or non-U.S.
income or employment tax obligation that may be related to the Vested Units, including any
such taxes that are required to be withheld and paid over to the applicable tax authorities
(the “Tax Withholding Obligation”). The Participant will be responsible for the
satisfaction of such Tax Withholding Obligation in a manner acceptable to the Company in its
sole discretion.
	 
	 	 	By accepting the Award the Participant agrees that, unless and to the extent the Participant
has otherwise satisfied the Tax Withholding Obligations in a manner permitted or required by
the Administrator pursuant to the Plan, the Company is authorized to withhold from the
shares of Common Stock issuable to the Participant in respect of Vested Units the whole
number of shares (rounding up) having a value (as determined by the Company consistent with
any applicable tax requirements) on the Taxable Date or the first trading day before the
Taxable Date sufficient to satisfy the applicable Tax Withholding Obligation. If the
withheld shares are not sufficient to satisfy the Participant’s Tax Withholding Obligation,
the Participant agrees to pay to the Company as soon as practicable any amount of the Tax
Withholding Obligation that is not satisfied by the withholding of shares of Common Stock
described above and if the withheld shares are more than sufficient to satisfy the
Participant’s Tax Withholding Obligation the Company shall make such arrangement as it
determines appropriate to credit such amount for the Participant’s benefit.
	 
	 	 	At any time not less than five (5) business days before any Tax Withholding Obligation
arises (e.g., a settlement date), the Participant may elect to satisfy all or any part of
the Participant’s Tax Withholding Obligation by delivering to the Company an amount that the
Company determines is sufficient (in light of the uncertainty of the exact amount thereof)
to so satisfy the Tax Withholding Obligation by (i) wire transfer to such account as the
Company may direct, (ii) delivery of a certified check payable
to the Company, or (iii) such other means as specified from time to time by the Administrator, in each case
unless the Company has specified prior to such date that the Participant is not permitted to
so satisfy the Tax Withholding Obligation.

	 	 	The Company may refuse to issue any shares of Common Stock to the Participant until the
Participant satisfies the Tax Withholding Obligation. The Participant acknowledges that the
Company has the right to retain without notice from shares issuable under the Award or from
salary or other amounts payable to the Participant, shares or cash having a value sufficient
to satisfy the Tax Withholding Obligation.
	 
	 	 	The Participant is ultimately liable and responsible for all taxes owed by the Participant
in connection with the Award, regardless of any action the Company takes or any transaction
pursuant to this Section 7 with respect to any tax withholding obligations that arise in
connection with the Award. The Company makes no representation or undertaking regarding the
treatment of any tax withholding in connection with the grant, issuance, vesting or
settlement of the Award or the subsequent sale of any of the shares of Common Stock
underlying Vested Units. The Company does not commit and is under no obligation to structure
the Award to reduce or eliminate the Participant’s tax liability.
	 
	8.	 	NON-TRANSFERABILITY OF AWARD
	 
	 	 	Unless otherwise provided by the Administrator, the Participant may not assign, transfer or
pledge the Award, the shares of Common Stock subject thereto or any right or interest
therein to anyone other than by will or the laws of descent and distribution. The Company
may cancel the Participant’s Award if the Participant attempts to assign or transfer it in a
manner inconsistent with this Section 7.
	 
	9.	 	THE PLAN AND OTHER AGREEMENTS
	 
	 	 	In addition to these Terms and Conditions, the Award shall be subject to the terms of the
Plan, which are incorporated into these Standard Terms and Conditions by this reference.
Certain capitalized terms not otherwise defined herein are defined in the Plan. In the event
of a conflict between the terms and conditions of these Standard Terms and Condition and the
Plan, the Plan controls.
	 
	 	 	The Term Sheet, these Standard Terms and Conditions and the Plan constitute the entire
understanding between the Participant and the Company regarding the Award. Any prior
agreements, commitments or negotiations concerning the Award are superseded.
	 
	10.	 	LIMITATION OF INTEREST IN SHARES SUBJECT TO AWARD
	 
	 	 	Neither the Participant (individually or as a member of a group) nor any beneficiary or
other person claiming under or through the Participant shall have any right, title,
interest, or privilege in or to any shares of Common Stock allocated or reserved for the
purpose of the Plan or subject to the Term Sheet or these Standard Terms and Conditions
except as to such shares of Common Stock, if any, as shall have been issued to such person
in respect of Vested Units.

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	11.	 	NOT A CONTRACT FOR EMPLOYMENT.
	 
	 	 	Nothing in the Plan, in the Term Sheet, these Standard Terms and Conditions or any other
instrument executed pursuant to the Plan shall confer upon the Participant any right to
continue in the Company’s employ or service nor limit in any way the Company’s right to
terminate the Participant’s employment at any time for any reason.
	 
	12.	 	NOTICES
	 
	 	 	All notices, requests, demands and other communications pursuant to these Standard Terms and
Conditions shall be in writing and shall be deemed to have been duly given if personally
delivered, telexed or telecopied to, or, if mailed, when received by, the other party at the
following addresses (or at such other address as shall be given in writing by either party
to the other):
	 
	 	 	If to the Company to:
	 
	 	 	The Corporate Executive Board Company

2000 Pennsylvania Avenue, N.W., Suite 6000

Washington, D.C. 20006

Attention: Chief Financial Officer
	 
	 	 	If to the Participant, to the address set forth below the Participant’s signature on the
Term Sheet.
	 
	13.	 	SEPARABILITY.
	 
	 	 	In the event that any provision of these Standard Terms and Conditions is declared to be
illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such
provision shall be reformed, if possible, to the extent necessary to render it legal, valid
and enforceable, or otherwise deleted, and the remainder of these Standard Terms and
Conditions shall not be affected except to the extent necessary to reform or delete such
illegal, invalid or unenforceable provision.
	 
	14.	 	HEADINGS.
	 
	 	 	The headings preceding the text of the sections hereof are inserted solely for convenience
of reference, and shall not constitute a part of these Standard Terms and Conditions, nor
shall they affect its meaning, construction or effect.
	 
	15.	 	FURTHER ASSURANCES.
	 
	 	 	Each party shall cooperate and take such action as may be reasonably requested by another
party in order to carry out the provisions and purposes of these Standard Terms and
Conditions.

	16.	 	BINDING EFFECT.
	 
	 	 	These Standard Terms and Conditions shall inure to the benefit of and be binding upon the
parties hereto and their respective permitted heirs, beneficiaries, successors and assigns.
	 
	17.	 	DISPUTES
	 
	 	 	All questions arising under the Plan or under these Standard Terms and Conditions shall be
decided by the Administrator in its total and absolute discretion. In the event the
Participant or other holder of an Award believes that a decision by the Administrator with
respect to such person was arbitrary or capricious, the Participant or other holder may
request arbitration with respect to such decision in accordance with Section 23 of the Plan.
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, and the Participant and any other holder
hereby explicitly waive any right to judicial review.
	 
	18.	 	ELECTRONIC DELIVERY
	 
	 	 	The Company may, in its sole discretion, decide to deliver any documents related to any
awards granted under the Plan by electronic means or to request the Participant’s consent to
participate in the Plan by electronic means. By accepting the Award, the Participant
consents to receive such documents by electronic delivery and, if requested, to agree to
participate in the Plan through an on-line or electronic system established and maintained
by the Company or another third party designated by the Company, and such consent shall
remain in effect throughout the Participant’s term of employment or service with the Company
and thereafter until withdrawn in writing by the Participant.
	 
	19.	 	DEFINITIONS

For purposes of these Standard Terms and Conditions, the terms set forth below shall have the
following meanings:

	 	A.	 	“Cause” means (i) the commission of an act of fraud or theft against the
Company; (ii) conviction for any felony; (iii) conviction for any misdemeanor involving
moral turpitude which might, in the Company’s opinion, cause embarrassment to the
Company; (iv) a significant violation of any material Company policy; (v) willful or
repeated non-performance or substandard performance of material duties which is not
cured within thirty (30) days after written notice thereof to the Participant; or (vi)
violation of any material District of Columbia, state or federal laws, rules or
regulations in connection with or during performance of the Participant’s work which,
if such violation is curable, is not cured within thirty (30) days after notice thereof
to the Participant.

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	 	B.	 	“Change in Control” means the occurrence of any of the following:

	 	(i)	 	the “acquisition” by a “person” or “group” (as those terms are
used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and the rules promulgated thereunder), other than
by Permitted Holders, of beneficial ownership (as defined in Exchange Act Rule
13d-3) directly or indirectly, of any securities of the Company or any
successor of the Company immediately after which such person or group owns
securities representing 50% or more of the combined voting power of the Company
or any successor of the Company;
	 
	 	(ii)	 	within any 12-month period, the individuals who were directors
of the Company as of December 31, 2005 (the “Incumbent Directors”) ceasing for
any reason other than death or disability to constitute at least a majority of
the Board of Directors, provided that any director who was not a director as of
December 31, 2005 shall be deemed to be an Incumbent Director if such director
was appointed or elected to the Board of Directors by, or on the recommendation
or approval of, at least a majority of directors who then qualified as
Incumbent Directors, provided further that any director appointed or elected to
the Board of Directors to avoid or settle a threatened or actual proxy contest
shall in no event be deemed to be an Incumbent Director; or
	 
	 	(iii)	 	approval by the stockholders of the Company of any merger,
consolidation or reorganization involving the Company, unless either (A) the
stockholders of the Company immediately before such merger, consolidation or
reorganization own, directly or indirectly immediately following such merger,
consolidation or reorganization, at least 60% of the combined voting power of
the company(ies) resulting from such merger, consolidation or reorganization in
substantially the same proportion as their ownership immediately before such
merger, consolidation or reorganization, or (B) the stockholders of the Company
immediately after such merger, consolidation or reorganization include
Permitted Holders;
	 
	 	(iv)	 	approval by the stockholders of the Company of a transfer of
50% or more of the assets of the Company or a transfer of assets that during
the current or either of the prior two fiscal years accounted for more than 50%
of the Company’s revenues or income, unless the person to which such transfer
is made is either (A) a Subsidiary of the Company, (B) wholly owned by all of
the stockholders of the Company, or (C) wholly owned by Permitted Holders; or
	 
	 	(v)	 	approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

	 	C.	 	“Permitted Holders” means:

	 	(i)	 	the Company;
	 
	 	(ii)	 	any Subsidiary;
	 
	 	(iii)	 	any employee benefit plan of the Company or any Subsidiary;
and
	 
	 	(iv)	 	any group which includes or any person who is wholly or
partially owned by a majority of the individuals who immediately prior to such
acquisition of securities or stockholder approval under paragraphs (i), (iii)
or (iv) of the definition of Change in Control are executive officers (as
defined in Exchange Act Rule 3b-7) of the Company or any successor of the
Company; provided that immediately prior to and for six months following such
acquisition of securities or stockholder approval such executive officers of
the Company are beneficial owners (as defined in Exchange Act Rule 16a-1(a)(2))
of the common stock of the Company or any successor of the Company; and
provided further that such executive officers’ employment is not terminated by
the Company or any successor of the Company (other than as a result of death or
disability) during the six months following such acquisition of securities or
stockholder approval. A Change of Control shall be deemed to have occurred on
any date within six months following an acquisition of securities or
stockholder approval under paragraphs (i), (iii) or (iv) of the definition of
Change in Control on which any of the conditions set forth in this clause (iv)
cease to be satisfied.

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THE CORPORATE EXECUTIVE BOARD COMPANY

TERM SHEET FOR

RESTRICTED STOCK UNITS

FOR GOOD AND VALUABLE CONSIDERATION, The Corporate Executive Board Company, a Delaware corporation
(the “Company”), hereby grants to Participant named below the number of restricted stock units
specified below (the “Award”), upon the terms and subject to the conditions set forth in this Term
Sheet, the Plan specified below (the “Plan”) and the Standard Terms and Conditions (the “Standard
Terms and Conditions”) adopted under such Plan and provided to Participant, each as amended from
time to time. Each restricted stock unit subject to this Award represents the right to receive on
one share of the Company’s Common Stock, $0.01 par value per share, subject to the conditions set
forth in this Term Sheet, the Plan and the Standard Terms and Conditions. This Award is granted
pursuant to the Plan and is subject to and qualified in its entirety by the Standard Terms and
Conditions.

	 	 	 
	The Plan:

	 	This Award is granted pursuant
to the Company’s 2004 Stock
Incentive Plan.
	 
	 	 
	Name of Participant:
	 	 
	 
	 	 
	Social Security Number:
	 	 
	 
	 	 
	Grant Date:
	 	 
	 
	 	 
	Number of restricted stock units subject
to the Award:
	 	 
	 
	 	 
	Time-Based Vesting Schedule:

	 	The number of restricted stock
units covered by the Award shall
vest — percent (—%) per year
beginning one (1) year after the
Grant Date set forth above,
subject to the achievement of
the performance-based vesting
criteria (if any) set forth
below and to the Standard Terms
and Conditions.
	 
	 	 
	Performance-Based Vesting Criteria:
	 	 

By accepting this Term Sheet, Participant acknowledges that he or she has received and read, and
agrees that this Award shall be subject to, the terms of this Term Sheet, the Plan and the Standard
Terms and Conditions.

	 	 	 	 	 	 	 
	THE CORPORATE EXECUTIVE BOARD COMPANY	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Participant Signature	 	 
	By
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Title:

	 	 	 	Address (please print):exv10w2

 

Exhibit 10.2

THE CORPORATE EXECUTIVE BOARD COMPANY

STANDARD TERMS AND CONDITIONS FOR

NON-QUALIFIED STOCK OPTIONS AND STOCK APPRECIATION

RIGHTS

(Mandatory Net Share Settlement)

These Standard Terms and Conditions apply to any Non-Qualified Stock Option and Stock Appreciation
Right granted after January 1, 2001 under either The Corporate Executive Board Company 1999 Stock
Option Plan, The Corporate Executive Board Company 2001 Stock Option Plan, The Corporate Executive
Board Company 2002 Non-Executive Stock Incentive Plan, and The Corporate Executive Board Company
2004 Stock Incentive Plan which are evidenced by a Term Sheet or an action of the Administrator
that specifically refers to these Standard Terms and Conditions.

	1.	 	TERMS OF NON-QUALIFIED STOCK OPTION AND STOCK APPRECIATION RIGHT
	 
	 	 	THE CORPORATE EXECUTIVE BOARD COMPANY, a Delaware corporation (the “Company”), has granted
to the Optionee named in the Term Sheet provided to said Optionee herewith (the “Term
Sheet”) a non-qualified stock option or a stock appreciation right (hereafter referred to as
the “Option”) to purchase up to the number of shares of the Company’s Common Stock, $0.01
par value per share (the “Common Stock”), set forth in Term Sheet, at the purchase price per
share and upon the other terms and subject to the conditions set forth in the Term Sheet,
these Standard Terms and Conditions (as amended from time to time), and the Plan specified
in the Term Sheet (the “Plan”). For purposes of these Standard Terms and Conditions and the
Term Sheet, any reference to the Company shall include a reference to any Subsidiary, as
such term is defined in the Plan.
	 
	2.	 	NON-QUALIFIED STOCK OPTION OR STOCK APPRECIATION RIGHT
	 
	 	 	The Option is not intended to be an incentive stock Option under Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”) and will be interpreted accordingly.
	 
	3.	 	EXERCISE OF OPTION
	 
	 	 	The Option shall not be exercisable as of the Grant Date set forth in the Term Sheet. After
the Grant Date, to the extent not previously exercised, and subject to termination or
acceleration as provided in these Standard Terms and Conditions and the Plan, the Option
shall be exercisable to the extent it becomes vested, as described in the Term Sheet, to
purchase up to that number of shares of Common Stock as set forth in the Term Sheet provided
that (except as set forth in Section 4.C. below) Optionee remains employed with the Company
and does not experience a termination of employment. The vesting period and/or
exercisability of an Option may be adjusted by the Administrator to
reflect the effects of any period during which the Optionee 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.

	 	 	To exercise the Option (or any part thereof), Optionee shall deliver a “Notice of Exercise”
to the Company specifying the number of whole shares of Common Stock Optionee wishes to
purchase and how Optionee’s shares of Common Stock should be registered (in Optionee’s name
only or in Optionee’s and Optionee’s spouse’s names as community property or as joint
tenants with right of survivorship).
	 
	 	 	The exercise price (the “Exercise Price”) of the Option is set forth in the Term Sheet. The
Company shall not be obligated to issue any shares of Common Stock until Optionee shall have
paid the total Exercise Price for that number of shares of Common Stock. Unless the
Administrator permits or requires the Optionee to pay the Exercise Price in such other
form(s) of consideration as the Administrator in its discretion shall specify pursuant to
the Plan, the Exercise Price shall be paid by the Company withholding from the shares of
Common Stock otherwise issuable to the Optionee upon the exercise of the Option (or portion
thereof) the whole number of shares (rounded up) having a fair market value on the date of
exercise sufficient to satisfy the Exercise Price. If the withheld shares are not
sufficient to pay the Exercise Price, the Optionee shall pay to the Company on the date of
exercise any amount of the Exercise Price that is not satisfied by the withholding of shares
of Common Stock described above and if the withheld shares are more than sufficient to
satisfy the Exercise Price the Company shall make such arrangement as it determines
appropriate to credit such amount for the Optionee’s benefit.
	 
	 	 	Fractional shares may not be exercised. Shares of Common Stock will be issued as soon as
practical after exercise. Notwithstanding the above, the Company shall not be obligated to
deliver any shares of Common Stock during any period when the Company determines that the
exercisability of the Option or the delivery of shares hereunder would violate any federal,
state or other applicable laws.
	 
	4.	 	EXPIRATION OF OPTION
	 
	 	 	Except as provided in this Section 4, the Option shall expire and cease to be exercisable as
of the Expiration Date set forth in the Term Sheet.

	 	A.	 	Upon the date of a termination of the Optionee’s employment as a result of the
death of the Optionee, and except as otherwise provided under paragraph (C) of this
Section 4, (i) any part of the Option that is unexercisable as of such termination date
shall remain unexercisable and shall terminate as of such date, and (ii) any part of
the Option that is exercisable as of the date of death shall be exercisable by the
Optionee’s estate, heir or beneficiary at any time during the twelve (12) months
following the date of death and shall terminate at the end of such twelve (12) month
period.

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	 	B.	 	Upon the date of a termination of the Optionee’s employment with the Company
for any reason other than the death of the Optionee, and except as otherwise provided
under paragraph (C) of this Section 4, (i) any part of the Option that is unexercisable
as of such termination date shall remain unexercisable and shall terminate as of such
date, and (ii) any part of the Option that is exercisable as of such termination date
shall expire the earlier of ninety (90) days following such date or the Expiration Date
of the Option.
	 
	 	C.	 	If, within one year after a Change of Control (as defined in Section 12 hereof)
of the Company, the Optionee’s employment with the Company is terminated for any reason
other than for Cause (as defined in Section 12 hereof) or voluntary resignation by the
Optionee, the Option shall become exercisable in its entirety upon the date of such
termination and shall expire twelve (12) months after the date of such termination.
The Option shall become exercisable in its entirety one year after a Change of Control
if the Optionee is employed by the Company at such time.

	5.	 	RESTRICTIONS ON RESALES OF OPTION SHARES
	 
	 	 	The Company may impose such restrictions, conditions or limitations as it determines
appropriate as to the timing and manner of any resales by the Optionee or other subsequent
transfers by the Optionee 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 Optionee and other optionholders and (c) restrictions as to the use of a specified
brokerage firm for such resales or other transfers.
	 
	6.	 	INCOME TAXES
	 
	 	 	The Optionee will be subject to federal and state income and other tax withholding
requirements on the date (generally, the date of exercise) determined by applicable law (any
such date, the “Taxable Date”), based on the excess of the fair market value of the shares
of Common Stock underlying the portion of the Option that is exercised over the Exercise
Price. The Optionee will be solely responsible for the payment of all U.S. federal income
and other taxes, including any state, local or non-U.S. income or employment tax obligation
that may be related to the exercise of the Option, including any such taxes that are
required to be withheld and paid over to the applicable tax authorities (the “Tax
Withholding Obligation”). The Optionee will be responsible for the satisfaction of such Tax
Withholding Obligation in a manner acceptable to the Company in its sole discretion.
	 
	 	 	By accepting the Option the Optionee agrees that, unless and to the extent the Optionee has
otherwise satisfied the Tax Withholding Obligations in a manner permitted or required by the
Administrator pursuant to the Plan, the Company is authorized to withhold from the shares of
Common Stock issuable to the Optionee in respect of Vested Units the whole number of shares
(rounding up) having a value (as determined by the Company consistent with any applicable tax requirements) on the Taxable Date or the first
trading day before the Taxable Date sufficient to satisfy the applicable Tax Withholding
Obligation. If the withheld shares are not sufficient to satisfy the Optionee’s Tax
Withholding Obligation, the Optionee agrees to pay to the Company as soon as practicable any
amount of the Tax Withholding Obligation that is not satisfied by the withholding of shares
of Common Stock described above and if the withheld shares are more than sufficient to
satisfy the Optionee’s Tax Withholding Obligation the Company shall make such arrangement as
it determines appropriate to credit such amount for the Optionee’s benefit.

	 	 	At any time not less than five (5) business days before any Tax Withholding Obligation
arises (e.g., a settlement date), the Optionee may elect to satisfy all or any part of the
Optionee’s Tax Withholding Obligation by delivering to the Company an amount that the
Company determines is sufficient (in light of the uncertainty of the exact amount thereof)
to so satisfy the Tax Withholding Obligation by (i) wire transfer to such account as the
Company may direct, (ii) delivery of a certified check payable to the Company, or (iii) such
other means as specified from time to time by the Administrator, in each case unless the
Company has specified prior to such date that the Optionee is not permitted to so satisfy
the Tax Withholding Obligation.
	 
	 	 	The Company may refuse to issue any shares of Common Stock to the Optionee until the
Optionee satisfies the Tax Withholding Obligation. The Optionee acknowledges that the
Company has the right to retain without notice from shares issuable upon exercise of the
Option (or any portion thereof) or from salary or other amounts payable to the Optionee,
shares or cash having a value sufficient to satisfy the Tax Withholding Obligation.
	 
	 	 	The Optionee is ultimately liable and responsible for all taxes owed by the Optionee in
connection with the Option, regardless of any action the Company takes or any transaction
pursuant to this Section 6 with respect to any tax withholding obligations that arise in
connection with the Option. The Company makes no representation or undertaking regarding the
treatment of any tax withholding in connection with the grant, issuance, vesting or exercise
of the Option or the subsequent sale of any of the shares of Common Stock acquired upon
exercise of the Option. The Company does not commit and is under no obligation to structure
the Option to reduce or eliminate the Optionee’s tax liability.
	 
	7.	 	NON-TRANSFERABILITY OF OPTION
	 
	 	 	Unless otherwise provided by the Administrator, the Optionee may not assign or transfer the
Option to anyone other than by will or the laws of descent and distribution and the Option
shall be exercisable only by the Optionee during his or her lifetime. The Company may
cancel the Optionee’s Option if the Optionee attempts to assign or transfer it in a manner
inconsistent with this Section 7.

2

 

	8.	 	THE PLAN AND OTHER AGREEMENTS
	 
	 	 	In addition to these Terms and Conditions, the Option shall be subject to the terms of the
Plan, which are incorporated into these Standard Terms and Conditions by this reference.
Certain capitalized terms not otherwise defined herein are defined in the Plan.
	 
	 	 	The Term Sheet, these Standard Terms and Conditions and the Plan constitute the entire
understanding between the Optionee and the Company regarding the Option. Any prior
agreements, commitments or negotiations concerning the Option are superseded.
	 
	9.	 	LIMITATION OF INTEREST IN SHARES SUBJECT TO OPTION
	 
	 	 	Neither the Optionee (individually or as a member of a group) nor any beneficiary or other
person claiming under or through the Optionee shall have any right, title, interest, or
privilege in or to any shares of Common Stock allocated or reserved for the purpose of the
Plan or subject to the Term Sheet or these Standard Terms and Conditions except as to such
shares of Common Stock, if any, as shall have been issued to such person upon exercise of
the Option or any part of it. Nothing in the Plan, in the Term Sheet, these Standard Terms
and Conditions or any other instrument executed pursuant to the Plan shall confer upon the
Optionee any right to continue in the Company’s employ or service nor limit in any way the
Company’s right to terminate the Optionee’s employment at any time for any reason.
	 
	10.	 	NOTICES
	 
	 	 	All notices, requests, demands and other communications pursuant to these Standard Terms and
Conditions shall be in writing and shall be deemed to have been duly given if personally
delivered, telexed or telecopied to, or, if mailed, when received by, the other party at the
following addresses (or at such other address as shall be given in writing by either party
to the other):
	 
	 	 	If to the Company to:
	 
	 	 	The Corporate Executive Board Company

2000 Pennsylvania Avenue, N.W., Suite 6000

Washington, D.C. 20006

Attention: Chief Financial Officer
	 
	 	 	If to the Optionee, to the address set forth below the Optionee’s signature on the Term
Sheet.
	 
	11.	 	GENERAL
	 
	 	 	In the event that any provision of these Standard Terms and Conditions is declared to be
illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such
provision shall be reformed, if possible, to the extent necessary to render it legal, valid
and enforceable, or otherwise deleted, and the remainder of these
Standard Terms and Conditions shall not be affected except to the extent necessary to reform or delete such
illegal, invalid or unenforceable provision.

	 	 	The headings preceding the text of the sections hereof are inserted solely for convenience
of reference, and shall not constitute a part of these Standard Terms and Conditions, nor
shall they affect its meaning, construction or effect.
	 
	 	 	These Standard Terms and Conditions shall inure to the benefit of and be binding upon the
parties hereto and their respective permitted heirs, beneficiaries, successors and assigns.
	 
	 	 	All questions arising under the Plan or under these Standard Terms and Conditions shall be
decided by the Administrator in its total and absolute discretion. In the event the
Optionee or other holder of an Option believes that a decision by the Administrator with
respect to such person was arbitrary or capricious, the Optionee or other 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, and the Optionee and any other option holder hereby 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.
	 
	12.	 	DEFINITIONS
	 
	 	 	For purposes of this Agreement, the terms set forth below shall have the following meanings:

	 	A.	 	“Cause” means the commission of an act of fraud or theft against the Company;
conviction for any felony; conviction for any misdemeanor involving moral turpitude
which might, in the Company’s opinion, cause embarrassment to the Company; significant
violation of any material Company policy; willful or

3

 

	 	 	repeated non-performance or substandard performance of material duties which is not
cured within thirty (30) days after written notice thereof to the Optionee; or
violation of any material District of Columbia, state or federal laws, rules or
regulations in connection with or during performance of the Optionee’s work which,
if such violation is curable, is not cured within thirty (30) days after notice
thereof to the Optionee.

	B.	 	“Change of Control” means any of the following:

	 	1.	 	the “acquisition” by a “person” or “group” (as those terms are
used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and the rules promulgated thereunder), other than
by Permitted Holders, of beneficial ownership (as defined in Exchange Act Rule
13d-3) directly or indirectly, of any securities of the Company or any
successor of the Company immediately after which such person or group owns
securities representing 50% or more of the combined voting power of the Company
or any successor of the Company;
	 
	 	2.	 	within any 12-month period, the individuals who were directors
of the Company as of December 31, 2005 (the “Incumbent Directors”) ceasing for
any reason other than death or disability to constitute at least a majority of
the Board of Directors, provided that any director who was not a director as of
December 31, 2005 shall be deemed to be an Incumbent Director if such director
was appointed or elected to the Board of Directors by, or on the recommendation
or approval of, at least a majority of directors who then qualified as
Incumbent Directors, provided further that any director appointed or elected to
the Board of Directors to avoid or settle a threatened or actual proxy contest
shall in no event be deemed to be an Incumbent Director; or
	 
	 	3.	 	approval by the stockholders of the Company of any merger,
consolidation or reorganization involving the Company, unless either (A) the
stockholders of the Company immediately before such merger, consolidation or
reorganization own, directly or indirectly immediately following such merger,
consolidation or reorganization, at least 60% of the combined voting power of
the company(ies) resulting from such merger, consolidation or reorganization in
substantially the same proportion as their ownership immediately before such
merger, consolidation or reorganization, or (B) the stockholders of the Company
immediately after such merger, consolidation or reorganization include
Permitted Holders;
	 
	 	4.	 	approval by the stockholders of the Company of a transfer of
50% or more of the assets of the Company or a transfer of assets that during
the current or either of the prior two fiscal years accounted for more than 50%
of the Company’s revenues or income, unless the person to which such transfer
is made is either (A) a Subsidiary of the Company, (B) wholly owned by all of
the stockholders of the Company, or (C) wholly owned by Permitted Holders;
or

	 	5.	 	approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

	C.	 	“Permitted Holders” means:

	 	1.	 	the Company,
	 
	 	2.	 	any Subsidiary,
	 
	 	3.	 	any employee benefit plan of the Company or any Subsidiary, and
	 
	 	4.	 	any group which includes or any person who is wholly or
partially owned by a majority of the individuals who immediately prior to such
acquisition of securities or stockholder approval under Sections A(i), A(iii)
or A(iv) are executive officers (as defined in Exchange Act Rule 3b-7) of the
Company or any successor of the Company; provided that immediately prior to and
for six months following such acquisition of securities or stockholder approval
such executive officers of the Company are beneficial owners (as defined in
Exchange Act Rule 16a-1(a)(2)) of the common stock of the Company or any
successor of the Company; and provided further that such executive officers’
employment is not terminated by the Company or any successor of the Company
(other than as a result of death or disability) during the six months following
such acquisition of securities or stockholder approval. A Change of Control
shall be deemed to have occurred on any date within six months following an
acquisition of securities or stockholder approval under Sections A(i), A(iii)
or A(iv) on which any of the conditions set forth in this clause (iv) cease to
be satisfied.

	D.	 	“Subsidiary” means any corporation in which the Company owns, directly or
indirectly, stock possessing 50% or more of the total combined voting power of all
classes of stock in such corporation.
	 
	E.	 	“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 an Optionee, shall be
deemed to result in a termination of employment with the Company for purposes of any
affected Optionee’s Options, and the Administrator’s decision shall be final and
binding.

4

 

THE CORPORATE EXECUTIVE BOARD COMPANY

TERM SHEET STOCK APPRECIATION RIGHTS (“SAR”)

(Mandatory Net Share Settlement)

FOR GOOD AND VALUABLE CONSIDERATION, The Corporate Executive Board Company, a Delaware corporation
(the “Company”), hereby grants to Grantee named below the stock appreciation right (the “SAR”) to
purchase up to the number of shares of its $0.01 par value Common Stock (the “Common Stock”) that
are covered by this SAR, as specified below, at the Exercise Price per share specified below and
upon the terms and subject to the conditions set forth in this Term Sheet, the Plan specified below
(the “Plan”) and the Standard Terms and Conditions (the “Standard Terms and Conditions”) adopted
under such Plan and provided to Grantee, each as amended from time to time. This SAR is subject to
net share settlement as set forth in the Standard Terms and Conditions for such grants. This SAR
further is granted pursuant to the Plan and is subject to and qualified in its entirety by the
Standard Terms and Conditions.

	 	 	 
	The Plan:

	 	This SAR is granted pursuant to
the Company’s 2004 Stock
Incentive Plan.
	 
	 	 
	Name of Grantee:
	 	 
	 
	 	 
	Social Security Number:
	 	 
	 
	 	 
	Grant Date:
	 	 
	 
	 	 
	Number of Shares of Common Stock
covered by SAR:
	 	 
	 
	 	 
	Exercise Price Per Share:

	 	$ 
	 
	 	 
	Expiration Date:
	 	 
	 
	 	 
	Vesting Schedule:

	 	The number of shares of Common
Stock covered by SAR shall vest
— percent (—%) per year
beginning one (1) year after the
Grant Date set forth above,
subject to the Standard Terms and
Conditions.

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

	 	 	 	 	 	 	 
	THE CORPORATE EXECUTIVE BOARD COMPANY	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Grantee Signature	 	 
	By
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Title:

	 	 	 	Address (please print):

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