Document:

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                                                                    Exhibit 10.2

                              CONSULTING AGREEMENT
                              --------------------

     AGREEMENT made as of the 1st day of January, 2001, by and between
HEARST-ARGYLE TELEVISION, INC. (hereinafter referred to as "Hearst-Argyle"), a
Delaware corporation with offices at 888 Seventh Avenue, New York, New York
10106, and ARGYLE COMMUNICATIONS, INC. (hereinafter referred to as
"Consultant"), a corporation with offices in San Antonio, Texas.

     WHEREAS, Bob Marbut is currently employed by Hearst-Argyle pursuant to the
terms of that certain Agreement made as of the 12th day of August, 1997
(hereinafter referred to as the "Personal Service Contract");

     WHEREAS, Bob Marbut's Personal Service Contract will terminate on December
31, 2000;

     WHEREAS, Bob Marbut will be employed by Consultant commencing on January 1,
2001;

     WHEREAS, Consultant represents and warrants to Hearst-Argyle that it is
authorized to provide the services of Bob Marbut ("Designated Employee"); and

     WHEREAS, Hearst-Argyle desires to retain the services of Consultant and its
Designated Employee and Consultant desires such engagement;

     NOW, THEREFORE, in consideration of the mutual provisions herein contained,
the parties agree as follows:

     FIRST: Hearst-Argyle hereby retains Consultant as an independent contractor
for a period of two years commencing with the 1st day of January, 2001
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and terminating as of the close of business on the 31st day of December, 2002,
to provide the following non-exclusive consulting services:

         (a)     Designated Employee serving as non-executive Chairman of the
                 Board of Directors of Hearst-Argyle;

         (b)     at the request of Hearst-Argyle senior management and/or its
                 Board of Directors, Designated Employee:

         (i)     serving as a member of the Boards of Directors of companies in
                 which Hearst-Argyle has an investment, such as Geocast, IBS and
                 CFN;

         (ii)    advising Hearst-Argyle senior management on strategic matters,
                 industry matters and competitive/technology/regulatory
                 developments related to the business of Hearst-Argyle;

         (iii)   participating in Hearst-Argyle strategic planning;

         (iv)    accepting such other assignments by Hearst-Argyle senior
                 management and/or its Board of Directors as may be deemed
                 appropriately related to the business of Hearst-Argyle.

          SECOND:  In providing the consulting services herein described,
Consultant agrees to supply the services of up to one-third (1/3) of the time of
the Designated Employee.

          THIRD:  Hearst-Argyle agrees to pay to Consultant and it agrees to
accept from Hearst-Argyle as complete remuneration for its consulting services

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hereunder the sum of Three Hundred Fifty Thousand Dollars ($350,000) per annum
paid in equal amounts monthly upon the condition that Consultant fully and
faithfully performs the services required of it by Hearst-Argyle hereunder in
respect of the period commencing with the 1st day of January, 2001 and extending
to and terminating on the 31st day of December, 2002.  The parties agree to
review Consultant's remuneration at the end of the first year of this Agreement.

          Consultant's entitlement to said fees shall cease upon the termination
of this Agreement pursuant to its terms, except in respect of any unpaid fees
earned prior to the termination of this Agreement.

          FOURTH:  Consultant understands that Hearst-Argyle is engaged in a
variety of highly competitive business operations, as to which it will gain
knowledge by reason of its activities hereunder.  As a result, Consultant agrees
that, during the term hereof, except as may be permitted by Hearst-Argyle,
neither Consultant nor any of its shareholders, directors, officers, employees
or agents shall render consulting services to any person, firm or corporation
whose business activities materially compete with those of Hearst-Argyle or of
any firm, association or corporation which is a subsidiary, unit or affiliate of
Hearst-Argyle or in which Hearst-Argyle holds an interest.  Should there be a
violation or attempted or threatened violation of this provision, Hearst-Argyle
may apply for and obtain an injunction to restrain such violation or attempted
or threatened violation, to which injunction Hearst-Argyle shall be entitled as
a matter of right, Consultant conceding that the services contemplated

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by this Agreement are special, unique and extraordinary, the loss of which
cannot reasonably or adequately be compensated in damages in an action at law.
Such injunctive relief shall be in addition to such other rights and remedies as
Hearst-Argyle may have against Consultant or any of its shareholders, directors,
officers, employees or agents arising from any breach of this provision.

          FIFTH:  It is further mutually understood and agreed that during the
period of, and after the expiration of, this Agreement, Consultant and its
shareholders, directors, officers, employees and agents will not use, divulge,
sell or deliver to or for any other person, firm or corporation other than
Hearst-Argyle or a successor to, or an affiliate or subsidiary of, Hearst-Argyle
(hereinafter in this paragraph collectively referred to as "HEARST-ARGYLE") any
confidential information and material (statistical or otherwise) relating to
HEARST-ARGYLE's business, including, but not limited to, confidential
information and material concerning marketing plans, business plans, customers,
employees, literary property and rights appertaining thereto, copyrights, trade
names, trademarks, financial information, methods and processes incident to
broadcasting, and any other secret or confidential information.  Upon the
expiration of this Agreement, Consultant will surrender, and will cause to be
surrendered, to HEARST-ARGYLE all lists, books and records of or in connection
with HEARST-ARGYLE's business and all other property belonging to HEARST-ARGYLE.
Should there be a violation or attempted or threatened violation by Consultant
or by any of its shareholders, directors, officers, employees or agents,

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of any of the provisions contained in this Paragraph FIFTH, HEARST-ARGYLE shall
be entitled to the same rights and relief by way of injunction and other
remedies as are provided for under Paragraph FOURTH hereof.

          In order to maintain the confidentiality of the above-described
information and material, and as an express condition of this Agreement,
Consultant agrees that prior to the disclosure of any of such information and
material to any of its shareholders, directors, officers, employees or agents,
it will deliver or cause to be delivered to Hearst-Argyle a statement in writing
executed by such shareholders, directors, officers, employees or agents, as the
case may be, acknowledging that each of such persons has read the provisions
contained in this Paragraph FIFTH and agrees to be bound by, and to adhere to,
such provisions.

          SIXTH:  Hearst-Argyle shall pay or reimburse Consultant for all
reasonable expenses, previously approved as to type and approximate amount by
Hearst-Argyle, incurred by Consultant in the performance of consulting services
hereunder, upon presentation by Consultant from time to time of a statement of
such expenses.

          SEVENTH:    This Agreement may be terminated by Hearst-Argyle (a) by
reason of a Disability to Designated Employee, as hereinafter defined, (b) for
Cause, as hereinafter defined, or (c) Without Cause, as hereinafter defined, all
upon payment of the sums hereinafter set forth.  In the event of Designated
Employee's death, this Agreement shall terminate and all rights and obligations
of this Agreement shall cease except as otherwise herein provided.

          In the event this Agreement is terminated due to Designated Employee's
death, Consultant or its legal representative or estate, as the case may be,
shall be

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entitled to receive any compensation to which Consultant was entitled, but which
Consultant had not yet received, at the time of Designated Employee's death.

          (a) For purposes of this Paragraph SEVENTH, Disability shall mean that
for a period of one hundred eighty (180) consecutive days, Designated Employee
is  unable to fulfill his duties and responsibilities under this Agreement
because of physical or mental incapacity.  If, as a result of a Disability,
Designated Employee shall have been unable to fulfill his duties and
responsibilities, and within thirty (30) days after written Notice of
Termination, as hereinafter defined, is given, Designated Employee shall not
have returned to the performance of his duties hereunder, Hearst-Argyle may
terminate this Agreement.   In the event of a termination due to Disability,
Consultant shall be entitled to receive compensation through the Date of
Termination, as hereinafter defined.

          (b) This Agreement may be terminated for "Cause" by Hearst-Argyle.
For purposes of this Agreement, "Cause" shall mean (i) conviction of a felony;
(ii) willful gross neglect or willful gross misconduct in the performance of
Consultant's duties hereunder; (iii) willful failure to comply with applicable
laws with respect to the conduct of Hearst-Argyle's business, resulting in
material economic harm to Hearst-Argyle; (iv) theft, fraud or embezzlement,
resulting in substantial gain or personal enrichment, directly or indirectly, to
Consultant at Hearst-Argyle's expense; (v) inability to perform the duties and
responsibilities of this Agreement as a result of addiction to alcohol or drugs,
other than drugs legally prescribed or administered by a duly

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licensed physician; or (vi) continued willful failure to comply with the
reasonable requests of senior management or the Board of Directors.

          A termination for Cause will be deemed to have occurred as of the date
when there shall have been delivered to Consultant a finding that, in the good
faith opinion of senior management, Consultant's conduct met the definition of
termination for Cause set forth above.

          In the event of a termination for Cause, Consultant shall be entitled
to receive compensation through the Date of Termination, as hereinafter defined.

          (c) A termination "Without Cause" shall mean a termination of this
Agreement by Hearst-Argyle other than due to Designated Employee's death or
Disability or for Cause.

          In the event of a termination Without Cause, Consultant shall be
entitled to receive, in a lump sum payment at the time of such termination, an
amount equal to Consultant's fees as provided in Paragraph THIRD, as if this
Agreement had remained  in effect for the shorter of the duration of the term of
this Agreement or one year (the "Payment Period").  In the event this Agreement
is terminated Without Cause, Consultant shall have no duty to mitigate damages.
Notwithstanding the above, Hearst-Argyle's obligation to pay the amounts
referenced hereinabove shall be conditioned on Consultant's signing a general
release in form satisfactory to Hearst-Argyle.

          "Notice of Termination," whether by Hearst-Argyle or by Consultant,
shall  be a written communication directed to the other party as provided in
Paragraph

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THIRTEENTH.

          "Date of Termination" shall mean (i) if this Agreement is terminated
by death, the date of Designated Employee's death, (ii) if terminated due to
Disability, thirty (30) days after Notice of Termination is given (provided that
Designated Employee shall not have returned to the performance of his duties
during such thirty (30) day period),  or (iii) if terminated by Hearst-Argyle
Without Cause, the date specified in the Notice of Termination, which date shall
be not less than five (5) nor more than thirty (30) days from the date Notice of
Termination was given.

          In the event that Hearst-Argyle is purchased, merged or otherwise
combined with another entity or entities, which combination results in a change
of at least Fifty Percent (50%) of the Board of Directors of Hearst-Argyle, or
in the event that Hearst-Argyle goes private, and that as a result, Designated
Employee is removed as non-executive Chairman of the Board of Directors of
Hearst-Argyle, this Agreement shall terminate and Consultant shall receive any
fees left unpaid under paragraph THIRD hereof.

          EIGHTH:  In rendering the consulting services herein provided, it is
understood that Consultant (including, but not limited to its employees) shall
be an independent contractor and shall not be eligible or entitled to
participate in any benefit plan or program available to Hearst-Argyle's
employees.

          NINTH:    Hearst-Argyle and Consultant acknowledge that the terms of
this Agreement are confidential and, among other things, constitute trade
secrets, the disclosure of which likely would inure to the material detriment of
Hearst-Argyle's business operations. Except as required by securities laws, FCC
regulations, other

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regulatory requirements, or court order, Hearst-Argyle and Consultant agree not
to disclose any of the terms of this Agreement to any other person or persons,
provided, however, that Consultant may make a limited disclosure to his legal or
financial advisors on condition that each such person to whom disclosure is made
agrees to maintain the confidentiality of such information and to refrain from
making further disclosure.

          TENTH:    Consultant covenants and agrees that during the term hereof,
regardless of the reason therefor, Consultant shall not solicit, induce, aid or
suggest to (i) any employee, (ii) any independent contractor or other service
provider, or (iii) any customer, agency or advertiser of Hearst-Argyle to leave
such employ, to terminate such relationship or to cease doing business with
Hearst-Argyle.  Consultant acknowledges that the terms of this paragraph are
reasonable and enforceable and that should there be a violation or attempted or
threatened violation by Consultant of any of the provisions contained in this
Paragraph TENTH, Hearst-Argyle shall be entitled to the same rights and relief
by way of injunction as are provided for under Paragraph FOURTH hereof.  In the
event that this non-solicitation covenant shall be deemed by any court of
competent jurisdiction, in any proceedings in which Hearst-Argyle shall be a
party, to be unenforceable because of its duration, scope, or area, it shall be
deemed to be and shall be amended to conform to the scope, period of time and
geographical area which would permit it to be enforced.

          ELEVENTH:    (a) Consultant agrees that neither this Agreement nor any

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of its rights or interests hereunder may be assigned, transferred, pledged,
hypothecated or otherwise disposed of.  Any attempted assignment, transfer,
pledge, hypothecation or other disposition of this Agreement or any of such
rights or interest contrary to the foregoing provisions, or the levy of any
execution, attachment or similar process thereon, shall be null and void and
without effect.

          (b)   Consultant hereby represents, warrants and agrees that no
impediment, contractual or otherwise, exists which limits or precludes
Consultant from entering into this Agreement and rendering full performance in
accordance with the terms and conditions herein provided.

          TWELFTH:  This Agreement, which may be executed in counterpart, each
of which shall be deemed to be an original but all of which collectively shall
be deemed to be one and the same instrument, constitutes and embodies the full
and complete understanding and agreement of the parties with respect to the
rendition of consulting services by Consultant hereunder, supersedes all prior
understandings and agreements, oral or written, with respect to such services
and cannot be changed, amended, or modified, nor may any condition or provision
hereof be waived, altered or discharged, except by the written agreement of both
Hearst-Argyle and Consultant.

          THIRTEENTH:  All notices hereunder or in connection herewith shall be
sent by certified mail, return receipt requested, and shall be addressed to the
respective parties as follows:

          To Hearst-Argyle:  Hearst-Argyle Television, Inc.
                             Attn:  General Counsel

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                             888 Seventh Avenue, 27th Floor
                             New York, NY  10106

          To Consultant:     Argyle Communications, Inc.
                             Attn:  Bob Marbut
                             200 Concord Plaza
                             Suite 700
                             San Antonio, TX  78216

or to such other address as the respective parties may designate by giving
notice to the other party in writing as herein provided.  Any such notice shall
be deemed to have been given on the date of mailing.

          FOURTEENTH:  No waiver by either party hereto of any failure by the
other party to keep or perform any covenant or condition of this Agreement shall
be deemed a waiver of any preceding or succeeding breach of the same, or any
other covenant or condition.

          FIFTEENTH:  Hearst-Argyle represents and warrants that it is a
corporation validly existing under the laws of the State of Delaware, that it is
free to enter into this Agreement and that this Agreement is a binding
obligation of Hearst-Argyle enforceable in accordance with its terms.

          Consultant represents and warrants that it is a corporation validly
existing under the laws of the State of Texas, that it is free to enter into
this Agreement and that this Agreement is a binding obligation of Consultant
enforceable in accordance with its terms.

          SIXTEENTH:    This Agreement (a) shall be construed, performed and
enforced in accordance with the laws of the State of New York applicable

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to contracts entered into within the State of New York, without regard to New
York's conflicts or choice of law rules, and (b) shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns, except as otherwise herein provided.

          SEVENTEENTH:    Except for matters covered by Paragraphs FOURTH, FIFTH
and TENTH hereof, Hearst-Argyle and Consultant agree that any claim which either
party may have against the other under local, state or federal law arising out
of an alleged breach of this Agreement or the terms and conditions thereof, will
be submitted to mediation and, if mediation is unsuccessful, to final and
binding arbitration in accordance with the rules of the American Arbitration
Association.  During the pendency of any claim, Hearst-Argyle and Consultant
agree to make no statement orally or in writing regarding the existence of the
claim or the facts forming the basis of such claim, or any statement orally or
in writing which could impair or disparage the personal or business reputation
of Hearst-Argyle or Consultant.    IN WITNESS WHEREOF, Hearst-Argyle and
Consultant have caused this Agreement to be executed, in triplicate, in their
respective corporate names by their respective duly authorized officers.

                                HEARST-ARGYLE TELEVISION, INC.

                                By /s/ David J. Barrett
                                   -------------------------
                                       President and
                                       Co-Chief Executive Officer

                                ARGYLE COMMUNICATIONS, INC.

                                By /s/ Bob Marbut
                                   -------------------------
                                       President

                                       12<PAGE>

                                                                    EXHIBIT 10.3

                        HEARST-ARGYLE TELEVISION, INC.

                  AMENDED AND RESTATED 1997 STOCK OPTION PLAN

  WHEREAS, on August 28, 1997 the stockholders of Hearst-Argyle Television,
Inc. adopted the Hearst-Argyle Television, Inc 1997 Stock Option Plan; and

  WHEREAS, Hearst-Argyle Television, Inc. desires to amend and restate the
Hearst-Argyle Television, Inc 1997 Stock Option Plan as set forth herein and
to adopt such amendment and restatement as the resulting "Amended and Restated
1997 Stock Option Plan", subject to approval by the stockholders of Hearst-
Argyle Television, Inc. (the "Approval").

  1. Plan Name and Purpose. Following the Approval, the 1997 Stock Option
Plan, as amended and restated herein, shall be known as the "Hearst-Argyle
Television, Inc. Amended and Restated 1997 Stock Option Plan", hereinafter
referred to as the "Plan." The purposes of the Plan are (i) to provide
incentives for key employees and Non-Employee Directors (as hereinafter
defined) of Hearst-Argyle Television, Inc. (the "Company"), and its subsidiary
corporations (within the meaning of Section 424(f) of the Internal Revenue
Code of 1986, as amended, (the "Code") and referred to herein as
"Subsidiaries") by encouraging their ownership of Series A common stock, $0.01
par value, of the Company (the "Stock") and (ii) to aid the Company in
retaining such key employees and Non-Employee Directors, upon whose efforts
the Company's success and future growth depends, and attracting other such
employees and Non-Employee Directors.

  2. Administration. This Plan shall be administered by the Company's Board of
Directors. Subject to the terms of this Plan, the Board shall have plenary
authority to determine the persons to whom options are to be granted, the
number of shares to be subject to each such option, to determine the terms and
provisions of any option agreements made pursuant to the Plan, to modify such
agreements, and to make all other determinations that may be necessary or
advisable for the administration of the Plan. For purposes of administration,
the Board, subject to the terms of this Plan, shall have plenary authority to
establish such rules and regulations, make such determinations and
interpretations, and take such other administrative actions as it deems
necessary or advisable. All determinations and interpretations made by the
Board shall be final, conclusive and binding on all persons, including the
holders of options granted under this Plan ("Optionees") and their legal
representatives and beneficiaries.

  The Board, in its discretion, may delegate any or all of its authority,
powers and discretion under this Plan to the Compensation Committee (the
"Committee"), and the Board in its discretion may revest any or all such
authority, powers and discretion in itself at any time. The Committee shall be
appointed from time to time by the Board of Directors. The Board of Directors
shall designate one of the members of the Committee as its Chairman. The
Committee shall hold its meetings at such times and places as it may
determine. A majority of its members shall constitute a quorum. All
determinations of the Committee shall be made by a majority of its members.
Any decision or determination reduced to writing and signed by all members of
the Committee shall be as effective as if it had been made by a majority vote
at a Committee meeting duly called and held. The Committee may appoint a
secretary (who need not be a member of the Committee). No member of the
Committee shall be liable for any act or omission with respect to his or her
service on the Committee, if he or she acts in good faith and in a manner he
or she reasonably believes to be in or not opposed to the best interests of
the Company.

  With respect to persons subject to Section 16 of the Securities Exchange Act
of 1934, as amended, or any successor statute (the "1934 Act"), transactions
under the Plan are intended to comply with all applicable conditions of Rule
16b-3 or its successors under the 1934 Act ("Rule 16b-3"). To the extent any
provision of the Plan or action by the Board of Directors of the Committee
fails to so comply, it shall be deemed null and void, to the extent permitted
by law.

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  3. Shares of Stock Available for Options. The aggregate number of shares of
Stock that may be issued under this Plan shall equal 8,745,362, subject to any
adjustments that may be made pursuant to Section 5(g) hereof. Shares of Stock
used for purposes of this Plan may be either authorized or unissued shares, or
previously issued shares, held in the treasury of the Company, or both.
Immediately upon the termination or forfeiture of any option granted under
this Plan (other than by reason of exercise or other cancellation for
consideration), any shares of Stock covered by such option shall be available
for grant as further options hereunder.

  Unless specifically defined otherwise, "Fully Diluted Shares" means, as of
any date, the sum of (i) the number of shares of Stock then outstanding (not
including any shares held in treasury) and (ii) without duplication, the
number of shares of Stock issuable upon conversion, exchange or exercise of
all outstanding securities, other obligations, options or warrants,
convertible into, exchangeable for or otherwise providing the right to acquire
such shares.

  4. Eligibility. Options under this Plan may be granted to key employees and
Non-Employee Directors of the Company or any Subsidiary. In selecting persons
to be granted options, the Board may take into consideration any factors it
may deem relevant, including its estimate of the person's present and
potential contributions to the success of the Company and its Subsidiaries.
The maximum number of shares of Stock with respect to which stock options may
be granted in any one year to any employee shall not exceed 500,000.

  5. Terms and Conditions of Options. The Board shall, in its discretion,
prescribe the terms and conditions of the options to be granted hereunder,
which terms and conditions need not be the same in each case, subject to the
following:

    (a) Option Agreement. Each option granted under this Plan shall be
  evidenced by a written option agreement, which shall be executed by the
  Optionee and an authorized officer of the Company and which shall contain
  such terms and conditions as the Board shall deem appropriate, consistent
  with the terms of this Plan.

    (b) Option Price. The price at which each share of Stock covered by an
  option granted under this Plan may be purchased shall be determined by the
  Board and shall not be less than the fair market value per share of Stock
  at the time of grant, subject to the incentive stock option provisions set
  forth in Section 6. The date of the grant of an option shall be the date
  specified by the Board in its grant of the option.

    (c) Option Period. The period for exercise of an option shall not exceed
  ten (10) years plus one day from the date of grant, subject to the
  provisions of Sections 5(e), 5(h), 6, and the provisions of any option
  agreement.

    (d) Exercise of Options. In order to exercise all or any portion of an
  option granted under this Plan, the Optionee, or his or her representative,
  devisees or heirs, as applicable, shall deliver to the Company written
  notice specifying the number of shares of Stock to be purchased, together
  with cash or a certified or bank cashier's check payable to the order of
  the Company or shares of Company Stock having a fair market value equal to
  the purchase price therefor. An Optionee shall have none of the rights of a
  stockholder until the shares of Stock are issued to him or her. An option
  may not be exercised for less than one hundred (100) shares of Stock, or
  the number of shares of Stock remaining subject to such option, whichever
  is less.

    (e) Effect of Termination of Employment or Service as a Non-Employee
  Director. Except as may be set forth in any option agreement, the following
  provisions of this Section 5(e) shall govern the treatment of options upon
  the termination of an Optionee's employment or service as a non-employee
  director by the Company and each of the Subsidiaries (hereinafter, the
  "Optionee's Employment or Service"):

      (i) An option will automatically be forfeited and unexercisable upon
    the termination of an Optionee's Employment or Service if such
    termination was for Cause (as defined below) or was voluntary by the
    Optionee (other than voluntary termination in connection with the
    Optionee's retirement upon or after such Optionee reaches age 65
    ("Retirement Age"). Unless otherwise specifically defined in an Option
    Agreement, a termination shall be for "Cause" if the Company (or a

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    Subsidiary) terminates the Optionee's Employment or Service because (A)
    the Optionee is convicted of a crime that is a felony (other than a
    traffic or moving violation); (B) the Optionee has willfully and
    materially breached, habitually neglected or failed to perform
    satisfactorily his or her duties as an employee, consultant or non-
    employee director; or, (C) the Optionee commits any material act or
    fraud or dishonesty during the course of the Optionee's Employment or
    Service.

      (ii) If an Optionee's Employment or Service is terminated because of
    (A) the death of the Optionee or (B) the Disability (as defined in
    subsection (v) below) of the Optionee, the Optionee, or his or her
    representative, devisees or heirs, as applicable, may exercise any
    options granted under this Plan that are exercisable on the date the
    Optionee's Employment or Service so terminates at any time prior to one
    year from the date of such termination.

      (iii) If an Optionee's Employment or Service is terminated because of
    the retirement of the Optionee at or after the Optionee reaches
    Retirement Age, then the Optionee may exercise any options granted
    under this Plan that are exercisable on the date the Optionee's
    Employment or Service so terminates at any time prior to one year from
    the date of such termination, subject to the incentive stock option
    provisions set forth in Section 6.

      (iv) If the Company terminates the Optionee's Employment or Service
    for any reason other than for Cause, then the Optionee, or his or her
    representative, devisees or heirs, as applicable, may exercise any
    options granted under this Plan that are exercisable on the date the
    Optionee's Employment or Service so terminates at any time prior to one
    year from the date of such termination, subject to the incentive stock
    option provisions set forth in Section 6. Notwithstanding the
    foregoing, if the Optionee's Employment or Service is terminated
    because the Optionee has become an employee of another company that is
    affiliated with the Company, through common ownership, common
    management or otherwise, then the options granted to such Optionee
    under this Plan shall not be deemed to be terminated, but rather shall
    continue in full force and effect as if the Optionee's Employment or
    Service had not been terminated.

      (v) Unless otherwise specifically defined in an Option Agreement,
    "Disability," as such term is used herein, shall refer to the Optionee
    becoming physically or mentally disabled (as determined in good faith
    by the Board) so that Optionee is unable to perform Optionee's duties
    which Optionee is required to perform for a period of more than one
    hundred twenty (120) consecutive days or more than one hundred eighty
    (180) days in the aggregate during any calendar year.

      (vi) If an Optionee's Employment or Service is terminated with the
    approval of the Board, the Board may, at its discretion, accelerate or
    otherwise modify the vesting conditions applicable to any options which
    are not exercisable on the date the Optionee's Employment or Service
    terminates, extend the period following termination of employment
    during which any outstanding options may be exercised (but in no event
    beyond the original exercise term of the grant), or modify the vesting
    terms and extend the exercise term of the grant.

      (vii) Nothing in this Plan or in any option granted pursuant to this
    Plan (in the absence of an express provision to the contrary) shall
    confer on any individual any right to continue in the employ of the
    Company or any Subsidiary, to continue to serve as a member of the
    Board, or to interfere in any way with the right of the Company to
    terminate his or her Employment or Service at any time.

    (f) Transferability of Options. During the lifetime of an Optionee,
  options held by such Optionee shall be exercisable only by the Optionee or
  his or her personal representative in the event of the Optionee's
  Disability. In the event of Optionee's death, options that remain
  exercisable under the terms of this Plan and the applicable Option
  Agreements may be exercised by the Optionee's representative, devisees or
  heirs, as applicable. Options shall be transferable by will or the laws of
  descent and distribution. Notwithstanding the foregoing, the Board may
  permit an Optionee to transfer exercise rights to any outstanding non-
  qualified stock options, provided such transfers are made to Permitted
  Transferees, as defined herein, and are made without consideration, for
  bona fide estate planning purposes. The Board shall establish whatever

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  administrative criteria it deems appropriate in reviewing and approving
  such transfer requests. For purposes of this Section 5(f), "Permitted
  Transferees" shall mean a member of an Optionee's immediate family, trusts
  for the benefit of such immediate family members, and partnerships in which
  the Optionee and/or such immediate family members are the only partners.
  Immediate family members shall include an Optionee's spouse, descendants
  (children, grandchildren and more remote descendants), and shall include
  step-children and relationships arising from legal adoption.

    (g) Adjustments for Change in Stock Subject to Plan and Other
  Events. Subject to any more particular rights that the Board may grant to
  an Optionee under an Option Agreement, in the event of a reorganization,
  recapitalization, reclassification, stock split, stock dividend,
  combination of shares, merger, consolidation, rights offering, or any other
  change in or event affecting the corporate structure or Stock of the
  Company, the Board may make such adjustments, if any, in the number of
  shares subject to this Plan and in the number of shares covered by
  outstanding options and/or in the option price per share as it deems
  appropriate and necessary to preserve the value of the benefits provided
  hereunder.

    (h) Acceleration of Exercisability of Options Upon Occurrence of Certain
  Events. The Board may provide, in an Option Agreement relating to any
  option granted hereunder, that in connection with any Change of Control (as
  hereinafter defined) of the Company, effective as of such date as the Board
  shall determine, the exercisability of such option shall be accelerated and
  the option may be immediately exercised to purchase all or any portion of
  the shares of Stock subject to such option, or all or a portion of such
  option may be terminated, as determined by the Board.

    "Change of Control" shall mean (i) a merger or consolidation in which the
  Company is a constituent corporation following which securities of the
  surviving or resulting corporation possessing less than 50% of the combined
  voting power of such corporation's outstanding voting securities (computed
  on either an actual or fully diluted basis) with respect to matters
  submitted to a vote of the stockholders generally shall then be owned in
  the aggregate by persons who prior thereto were stockholders of the
  Company; (ii) a sale or transfer by the Company or any of its Subsidiaries
  of all or substantially all of the consolidated assets of the Company and
  its Subsidiaries to an entity that is not a Subsidiary of the Company;
  (iii) any "person" (as such term is used in Sections 3(a)(9) or 13(d)(3) of
  the 1934 Act), other than Excluded Persons, is or becomes the beneficial
  owner, directly or indirectly, of securities of the Company representing
  more than 50% of the combined voting power of the Company's then
  outstanding voting securities with respect to matters submitted to a vote
  of the stockholders generally; (iv) any "person" other than Excluded
  Persons is or becomes the beneficial owner, directly or indirectly, of
  securities of the Company representing more than 50% of the then
  outstanding Stock; (v) at such time as any shares of Series B common stock,
  $0.01 par value, of the Company are no longer outstanding, within any two-
  year period, a majority of the Company's Board of Directors is no longer
  composed of persons who were directors at the beginning of such two-year
  period, unless the continuing directors, together with the new directors
  who were approved by a majority of the prior directors, constitute a
  majority of the Board; (vi) the Company adopts a plan of dissolution or
  liquidation or liquidates or dissolves; or (vii) any transaction or series
  of transactions which has a reasonable likelihood or a purpose of
  producing, directly or indirectly, any of the effects described in
  paragraph (a)(3)(ii) of Rule 13e-3 of the 1934 Act. The term "Excluded
  Persons" means each of (i) The Hearst Corporation or any other "Permitted
  Transferee" (as defined in Article Four of the Company's Amended and
  Restated Certificate of Incorporation) and (ii) a trustee or other
  fiduciary holding securities under any employee benefit plan of the
  Company.

    Notwithstanding the foregoing, in no event shall any option be
  exercisable after the date of termination of the exercise period of such
  option specified in Section 5(c).

    (i) Stock Legends. Certificates evidencing shares of Stock issued under
  the Plan shall have conspicuously noted thereon such restrictions on
  transferability as the Company may require in order to ensure compliance
  with applicable federal and state securities laws and regulations.

    (j) Options for Non-Employee Directors. Notwithstanding any provision
  herein to the contrary, each Non-Employee Director of the Company shall be
  awarded options to purchase 4,000 shares of Stock each

                                      I-4
<PAGE>

  year that such person continues to serve as a director of the Company, and
  an additional 1,000 shares of Stock each year that such person serves as a
  chairperson of a committee of the Board. The initial grant to each Non-
  Employee Director shall have been made as of the adoption of the 1997 Stock
  Option Plan (or as soon thereafter as is reasonably practicable) and each
  subsequent annual grant shall be made on each anniversary of the date of
  the initial grant for as long as such Non-Employee Director continues to
  serve as a director of the Company or any of its Subsidiaries. All such
  options granted to the Non-Employee Directors shall have an exercise price
  equal to the fair market value of the Stock as of the date of grant (as
  determined by the Board of Directors), shall become fully exercisable two
  (2) years from the date of grant and shall expire ten (10) years from the
  date of grant.

    "Non-Employee Director", as defined by Rule 16b-3 shall mean a director
  of the Company who (i) is not currently an officer of the Company or a
  parent or subsidiary of the Company, or otherwise currently employed by the
  Company or a parent or subsidiary of the Company; (ii) does not receive
  compensation, either directly or indirectly, from the Company or a parent
  or subsidiary of the Company, for services rendered as a consultant or in
  any capacity other than as a director, except for an amount that does not
  exceed the dollar amount for which disclosure would be required pursuant to
  Item 404(a) of Regulation S-K; (iii) does not possess an interest in any
  other transaction for which disclosure would be required pursuant to Item
  404(a) of Regulation S-K; and (iv) is not engaged in a business
  relationship for which disclosure would be required pursuant to Item 404(b)
  of Regulation S-K.

    (k) Other Terms and Conditions. The Board may impose such other terms and
  conditions, not inconsistent with the terms hereof, on the grant or
  exercise of options, as it deems advisable.

  6. Provisions Applicable to Incentive Stock Options. The Committee may, in
its discretion, grant options under this Plan to eligible employees which
constitute "incentive stock options" (within the meaning of Section 422(b) of
the Code), provided, however, that the following provisions shall be
applicable to such options ("Incentive Stock Options"):

    (a) No Incentive Stock Option shall be exercisable more than ten (10)
  years from the date of grant thereof.

    (b) To the extent that the aggregate fair market value (determined at the
  time the respective Incentive Stock Option is granted) of Stock with
  respect to which Incentive Stock Options are exercisable for the first time
  by an individual during any calendar year under all incentive stock option
  plans for the Company and its Subsidiaries exceeds $100,000, such excess
  Incentive Stock Options shall be treated as options which do not constitute
  Incentive Stock Options.

    (c) No Incentive Stock Option shall be granted to an individual if, at
  the time the option is granted, such individual owns stock possessing more
  than 10% of the total combined voting power of all classes of stock of the
  Company or of its Subsidiaries, unless (i) at the time such option is
  granted the option price is at least 110% of the fair market value of the
  Stock subject to the option, and (ii) such option by its terms is not
  exercisable after the expiration of five (5) years from the date of grant.

    (d) The purchase price of a share of Stock under an Incentive Stock
  Option shall be no less than 100% of the fair market value of a share of
  Stock as of the date such option is granted.

    (e) An Incentive Stock Option shall be exercisable only while the
  Optionee is an employee of the Company or a Subsidiary, or within three (3)
  months after the date that the Optionee's employment with the Company is
  terminated for reasons other than death or Disability, for Cause, or
  voluntary termination by the Optionee.

  7. Amendment and Termination. Unless this Plan previously shall have been
terminated as hereinafter provided, this Plan shall terminate on, and no
option shall be granted hereunder, ten (10) years from (i) the date the 1997
Stock Option Plan was adopted by the Board or (ii) the date the 1997 Stock
Option Plan was approved by the Company's stockholders, whichever is earlier;
provided, however, that the Board may at any time prior to that date terminate
this Plan. The Board may at any time amend this Plan; provided, however, that
an amendment

                                      I-5
<PAGE>

shall be subject to stockholder approval if such approval is required for
favorable treatment under Rule 16b-3 or the Code or is required by the rules
of any securities exchange or market system on which securities of the Company
are listed, reported or admitted to trading at the time such amendment is
adopted. No termination or amendment of this Plan may, without the consent of
an Optionee, adversely affect the rights of such Optionee under any option
held by such Optionee. Notwithstanding anything in this Section 7 to the
contrary, this Plan may from time to time be amended to satisfy or otherwise
conform to the conditions and requirements and provisions set forth in Rule
16b-3 or in any successor role.

  8. Withholding. It shall be a condition to the obligation of the Company to
issue shares of Stock upon exercise of an option, that the Optionee (or any
beneficiary or other person entitled to act under the terms hereof) pay to the
Company, upon its demand, such amount as may be requested by the Company for
the purpose of satisfying any liability to withhold federal, state or local
income or other taxes. Without limiting the generality of the foregoing,
Optionees may be given the opportunity to elect to have shares of Stock
acquired through exercise of the option withheld to satisfy withholding tax
obligations.

                                      I-6

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