Document:

<PAGE>   1
                                                                   EXHIBIT 10.14

                           THE ADVISORY BOARD COMPANY
                                 TERM SHEET FOR
                  2001 STOCK-BASED INCENTIVE COMPENSATION PLAN

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

<TABLE>
----------------------------------------------------------------------------------------------
<S>                                    <C>
                                       This Option is granted pursuant to the Company's 2001
                                       Stock-Based Incentive Compensation Plan, attached
The Plan:                              hereto as Exhibit A.
----------------------------------------------------------------------------------------------

Name of Optionee:
----------------------------------------------------------------------------------------------
Social Security Number:
----------------------------------------------------------------------------------------------
Grant Date:
----------------------------------------------------------------------------------------------
Number of Shares of Common
Stock covered by Option:
----------------------------------------------------------------------------------------------
Exercise Price Per Share:             $
----------------------------------------------------------------------------------------------
Expiration Date:
----------------------------------------------------------------------------------------------
Vesting Schedule:

                                       ----------------, subject to the Standard Terms and
                                       Conditions, attached hereto as Exhibit B.
----------------------------------------------------------------------------------------------
</TABLE>

This Option is intended to qualify as an incentive stock option under Section
422 of the Internal Revenue Code of 1986, as amended. By accepting this Term
Sheet, Optionee acknowledges that he or she has received and read, and agrees
that this Option shall be subject to, the terms of this Term Sheet, the Plan and
the Standard Terms and Conditions.

THE ADVISORY BOARD COMPANY          THE OPTIONEE

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

<PAGE>   2
                           THE ADVISORY BOARD COMPANY
                                 TERM SHEET FOR
                  2001 STOCK-BASED INCENTIVE COMPENSATION PLAN

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

<TABLE>
----------------------------------------------------------------------------------------------
<S>                                    <C>
The Plan:                              This Option is granted pursuant to the Company's 2001
                                       Stock-Based Incentive Compensation Plan, attached
                                       hereto as Exhibit A.
----------------------------------------------------------------------------------------------
Name of Optionee:
----------------------------------------------------------------------------------------------
Social Security Number:
----------------------------------------------------------------------------------------------
Grant Date:
----------------------------------------------------------------------------------------------
Number of Shares of Common
Stock covered by Option:
----------------------------------------------------------------------------------------------
Exercise Price Per Share:             $
----------------------------------------------------------------------------------------------
Expiration Date:
----------------------------------------------------------------------------------------------
Vesting Schedule:                    ----------, subject to the Standard Terms
                                     and Conditions, attached hereto as Exhibit B.
----------------------------------------------------------------------------------------------
</TABLE>

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

THE ADVISORY BOARD COMPANY          THE OPTIONEE

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

                                       2
<PAGE>   3
                         THE ADVISORY BOARD COMPANY
                      STANDARD TERMS AND CONDITIONS FOR
              2001 STOCK-BASED INCENTIVE COMPENSATION PLAN NON-
                              QUALIFIED OPTIONS

1.      TERMS OF OPTION

        THE ADVISORY BOARD COMPANY, a Maryland corporation (the "Company"), has
        granted to the Optionee named in the Term Sheet provided to said
        Optionee herewith (the "Term Sheet") a non-qualified stock option (the
        "Option") to purchase any part or all of the number of shares of the
        Company's 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

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

        To exercise the Option (or any part thereof), Optionee shall deliver a
        "Notice of Exercise" to the Company specifying the number of whole
        shares of Common Stock Optionee wishes to purchase and how Optionee's
        shares of Common Stock should be registered (in Optionee's name only or
        in Optionee's and Optionee's spouse's names as community property or as
        joint tenants with right of survivorship).

        The Company shall not be obligated to issue any shares of Common Stock
        until Optionee shall have paid the total Exercise Price for that number
        of shares of Common Stock. The Exercise Price may be paid:

        A.      in cash,

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<PAGE>   4
        B.      by payment under an arrangement with a broker where payment is
                made pursuant to an irrevocable commitment by a broker to
                deliver all or part of the proceeds from the sale of the Option
                shares to the Company,

        C.      by tendering (either physically or by attestation) shares of
                Common Stock owned by the Optionee and having a fair market
                value on the date of exercise equal to the Exercise Price but
                only if such will not result in an accounting charge to the
                Company, or

        D.      by any combination of the foregoing or in such other form(s) of
                consideration as the Administrator (as defined in the Plan) in
                its discretion shall specify.

        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.

        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.

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<PAGE>   5

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

        To the extent required by applicable federal, state, local or foreign
        law, the Optionee shall make arrangements satisfactory to the Company
        for the satisfaction of any withholding tax obligations that arise by
        reason of an Option exercise or disposition of shares issued as a result
        of an Option exercise. The Company shall not be required to issue shares
        or to recognize the disposition of such shares until such obligations
        are satisfied.

7.      NON-TRANSFERABILITY OF OPTION

        Unless otherwise provided by the Administrator, 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
        Optionee during his or her lifetime. The Company may cancel Optionee's
        Option if Optionee attempts to assign or transfer it in a manner
        inconsistent with this Section 7.

8.      THE PLAN AND OTHER AGREEMENTS

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

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

9.      LIMITATION OF INTEREST IN SHARES SUBJECT TO OPTION

        Neither Optionee (individually or as a member of a group) nor any
        beneficiary or other person claiming under or through Optionee shall
        have any right, title, interest, or privilege in or to any shares of
        Common Stock allocated or reserved for the purpose of the Plan or
        subject to the Term Sheet or these Standard Terms and Conditions except
        as to such shares of Common Stock, if any, as shall have been issued to
        such person upon exercise of the Option or any part of it. Nothing in
        the Plan, in the Term Sheet, these Standard Terms and Conditions or any
        other instrument executed pursuant to the Plan

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<PAGE>   6

        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.     NO LIABILITY OF COMPANY

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

11.     NOTICES

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

        If to the Company to:

        The Advisory Board Company
        600 New Hampshire Avenue, N.W.
        Washington, D.C.  20037
        Attention:  Administrator of 2001 Stock-Based Incentive Compensation
                    Plan

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

12.     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.

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<PAGE>   7

        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.

13.     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 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.      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;

                3.      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

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<PAGE>   8
                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

        4.      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.

                                       6
<PAGE>   9
                         THE ADVISORY BOARD COMPANY
                      STANDARD TERMS AND CONDITIONS FOR
    2001 STOCK-BASED INCENTIVE COMPENSATION PLAN QUALIFIED STOCK OPTIONS

1.      TERMS OF OPTION

        THE ADVISORY BOARD COMPANY, a Maryland corporation (the "Company"), has
        granted to the Optionee named in the Term Sheet provided to said
        Optionee herewith (the "Term Sheet") an incentive stock option (the
        "Option") to purchase any part or all of 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.      EXERCISE OF OPTION

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

        To exercise the Option (or any part thereof), the Optionee shall deliver
        a "Notice of Exercise" to the Company specifying the number of whole
        shares of Common Stock the Optionee wishes to purchase and how the
        Optionee's shares of Common Stock should be registered (in the
        Optionee's name only or in the Optionee's and the Optionee's spouse's
        names as community property or as joint tenants with right of
        survivorship).

        The Company shall not be obligated to issue any shares of Common Stock
        until the Optionee shall have paid the total Exercise Price for that
        number of shares of Common Stock. The Exercise Price may be paid:

        A.      in cash,

        B.      by payment under an arrangement with a broker where payment is
                made pursuant to an irrevocable commitment by a broker to
                deliver all or part of the proceeds from the sale of the Option
                shares to the Company,

        C.      by tendering (either physically or by attestation) shares of
                Common Stock owned by the Optionee and having a fair market
                value on the date of exercise equal to the Exercise Price but
                only if such will not result in an accounting charge to the
                Company, or

        D.      by any combination of the foregoing or in such other form(s) of
                consideration as the Administrator (as defined in the Plan) in
                its discretion shall specify.

        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

<PAGE>   10

        exercisability of the Option or the delivery of shares hereunder would
        violate any federal, state or other applicable laws.

3.      EXPIRATION OF OPTION

        Except as provided in this Section 3, 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 3, (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.

        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 3, (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 11 hereof) of the Company, the Optionee's employment
                with the Company is terminated for any reason other than for
                Cause (as defined in Section 11 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.

4.      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.

5.      INCOME TAXES

        To the extent required by applicable federal, state, local or foreign
        law, the Optionee shall make arrangements satisfactory to the Company
        for the satisfaction of any withholding tax obligations that arise by
        reason of an Option exercise or disposition of shares issued as a result
        of an Option exercise. The Company shall not be required to issue shares
        or to recognize disposition of such shares until such obligations are
        satisfied.

        The Option is intended to qualify as an incentive stock option under
        Section 422 of the Internal Revenue Code of 1986, as amended (the
        "Code"), and will be interpreted accordingly. Section

                                       2
<PAGE>   11

        422 of the Code provides, among other things, that the Optionee shall
        not be taxed upon the exercise of a stock option that qualifies as an
        incentive stock option provided the Optionee does not dispose of the
        shares of Common Stock acquired upon exercise of such option until the
        later of two years after such option is granted to the Optionee and one
        year after such option is exercised. Notwithstanding anything to the
        contrary herein, Section 422 of the Code provides that incentive stock
        options (including, possibly, the Option) shall not be treated as
        incentive stock options if and to the extent that the aggregate fair
        market value of shares of Common Stock (determined as of the time of
        grant) with respect to which such incentive stock options are
        exercisable for the first time by the Optionee during any calendar year
        (under all plans of the Company and its subsidiaries) exceeds $100,000,
        taking options into account in the order in which they were granted.
        Thus, if and to the extent that any shares of Common Stock issued under
        a portion of the Option exceeds the foregoing $100,000 limitation, such
        shares shall not be treated as issued under an incentive stock option
        pursuant to Section 422 of the Code.

6.      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 6.

7.      THE PLAN AND OTHER AGREEMENTS

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

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

8.      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.

9.      NO LIABILITY OF COMPANY

        The Company and any affiliate which is in existence or hereafter comes
        into existence shall not be liable to the Optionee or any other person
        as to: (a) the non-issuance or sale of shares of

                                       3
<PAGE>   12

        Common Stock as to which the Company has been unable to obtain from any
        regulatory body having jurisdiction the authority deemed by the
        Company's counsel to be necessary to the lawful issuance and sale of any
        shares hereunder; and (b) any tax consequence expected, but not
        realized, by the Optionee or other person due to the receipt, exercise
        or settlement of any Option granted hereunder.

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 Advisory Board Company
        600 New Hampshire Avenue, N.W.
        Washington, D.C.  20037
        Attention:  Administrator of 2001 Stock-Based Incentive Compensation
                    Plan

        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.

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
                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

                                       4
<PAGE>   13

                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.      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;

                3.      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

                4.      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

                                       5
<PAGE>   14

                        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.

                                       6<PAGE>   1
                                                                   EXHIBIT 10.15

                           THE ADVISORY BOARD COMPANY
                              DIRECTORS' STOCK PLAN

1.      PURPOSE

        The purpose of The Advisory Board Company Directors' Stock Plan (the
        "Plan") is to advance the interests of The Corporate Executive Board
        Company, a Delaware corporation (hereinafter the "Company"), by enabling
        the Company to attract, retain and motivate qualified individuals to
        serve on the Company's Board of Directors and to align the financial
        interests of such individuals with those of the Company's stockholders
        by providing for or increasing their proprietary interest in the
        Company. Any stock options granted pursuant to this Plan shall not
        qualify under Section 422 of the Internal Revenue Code of 1986, as
        amended (the "Code"), as incentive stock options. The plan is intended
        to operate in a manner that exempts grants of Common Stock under the
        Plan from Section 16(b) of the Securities Exchange Act of 1934, as
        amended.

2.      DEFINITIONS

        (a) "Board" means the Board of Directors of the Company.

        (b) "Committee" means the Board and/or the Compensation Committee of the
        Board acting pursuant to its authorization to administer this Plan under
        Section 7.

        (c) "Common Stock" means the Company's Class B Non-Voting Common Stock,
        par value $.01 per share, subject to adjustment as provided in Section
        9.

        (d) "Market Value" means, as of any date, and unless the Committee shall
        specify otherwise, the closing sale price of the Common Stock as
        reported for such date pursuant to the consolidated quotation system or
        any other transaction reporting plan under Section 11A of the Securities
        Exchange Act of 1934, as amended (the "Exchange Act"), or, if there have
        been no sales so reported for such date, the average of the best bid and
        best offer prices quoted under the consolidated quotation system or any
        other such transaction reporting plan as of 4:00 p.m., New York time, on
        such date, or if on any date the Common Stock is not so quoted, the
        average of the best bid and best offered prices on such day in the
        domestic over-the-counter market as reported by the National Quotation
        Bureau, Incorporated, or any similar successor or comparable
        organization. If at any time the Common Stock is not listed on any
        domestic securities exchange or quoted under a transaction reporting
        plan or in the domestic over-the-counter market, the "Market Value"
        shall be the fair value thereof determined by the Committee.

        (e) "Options" shall mean the stock options granted to a Participant with
        respect to shares of Common Stock pursuant to the terms of this Plan.

        (f) "Stock Grant" shall mean the award of shares of Common Stock to a
        Participant pursuant to the terms of this Plan.

                                       1
<PAGE>   2

3.      SHARES SUBJECT TO THE PLAN

        Subject to adjustment as provided in Section 9, the maximum number of
        shares of Common Stock which may be issued pursuant to this Plan shall
        not exceed 900,000. Shares issued under this Plan may be authorized and
        unissued shares of Common Stock or shares of Common Stock reacquired by
        the Company. All or any shares of Common Stock subject to an Option or a
        Stock Grant which for any reason are not issued, do not become vested or
        are reacquired pursuant to the Plan or the terms of an Option or Stock
        Grant may again be made subject to an Option or Stock Grant under the
        Plan.

4.      PARTICIPANTS

        Any person who is, or is elected to be, a director of the Company or any
        of its subsidiaries shall be eligible for the award of Options and/or
        Stock Grants hereunder. The Committee shall determine to which directors
        any such Options and/or Stock Grants shall be awarded hereunder (any
        such director and his or her authorized transferees hereinafter referred
        to as a "Participant").

5.      DIRECTOR AWARDS

        The Committee may provide for Options and/or Stock Grants to be awarded
        to Directors in consideration for their service to the Company. The
        Committee shall specify the number of shares subject to each Option or
        Stock Grant provided for under this Section 5, or the formula pursuant
        to which such number shall be determined, the Participants to receive
        any such award, the date of award and the vesting and expiration terms
        applicable to such Option or Stock Grant. The award of Options or Stock
        Grants hereunder may, but need not, be conditioned on the Director
        electing to forego his or her right to all or any part of his or her
        cash retainer or other fees. Subject to adjustment pursuant to Section
        9, the maximum number of shares of Common Stock subject to Options and
        Stock Grants awarded under this Plan during any calendar year to any
        person on account of his or her service as a director shall not exceed
        100,000 shares.

6.      TERMS AND CONDITIONS OF OPTIONS AND STOCK GRANTS

        (a) General Terms and Conditions: Options and Stock Grants awarded
        pursuant to the Plan need not be identical but each Option and Stock
        Grant shall be subject to the following general terms and conditions:

                (1) Terms and Restrictions Upon Shares: The Committee may
                provide that the shares of Common Stock issued upon exercise of
                an Option or receipt of a Stock Grant shall be subject to such
                further conditions, restrictions or agreements as the Committee
                in its discretion may specify prior to the exercise of such
                Option or receipt of such Stock Grant, including without
                limitation, manner of sale, deferrals on issuance, conditions on
                vesting or transferability, and forfeiture or repurchase
                provisions.

                (2) Transferability: Unless otherwise provided by the Committee,
                awards of Options or Stock Grants under the Plan shall be
                nontransferable by the Participant other than by will or the
                laws of descent and distribution and Options shall be
                exercisable only by the Participant during his or her lifetime.

                                       2
<PAGE>   3

                (3) Other Terms and Conditions: No holder of an Option or Stock
                Grant shall have any rights as a stockholder with respect to any
                shares of Common Stock subject to an Option or Stock Grant
                hereunder until said shares have been issued. Options and Stock
                Grants may also contain such other provisions, which shall not
                be inconsistent with any of the foregoing terms, as the
                Committee shall deem appropriate. The Committee may waive
                conditions to and/or accelerate exercisability of an Option or
                Stock Grant, either automatically upon the occurrence of
                specified events (including in connection with a change of
                control of the Company) or otherwise in its discretion. No
                Option or Stock Grant, however, nor anything contained in the
                Plan, shall confer upon any Participant any right to serve as a
                director of the Company or any of its subsidiaries.

        (b) Option Terms: The Committee may establish the terms, provisions and
        conditions applicable to awards of Options (including, but not limited
        to, exercise price, exercisability and vesting) to the extent such
        terms, provisions and conditions are consistent with the express
        provisions of the Plan. The exercise price for each Option shall be
        established by the Committee or under a formula established by the
        Committee. Notwithstanding the forgoing, the exercise price shall not be
        less than the Market Value of the Common Stock on the date of grant of
        the Option, unless the Participant pays or foregoes compensation in the
        amount of any discount. The exercise price of an Option shall be payable
        (i) in cash, (ii) by payment under an arrangement with a broker where
        payment is made pursuant to an irrevocable direction to the broker to
        deliver all or part of the proceeds from the sale of the Option shares
        to the Company, (iii) by tendering (either physically or by attestation)
        shares of Common Stock owned by the Participant exercising the Option
        and having a Market Value on the date of exercise equal to the exercise
        price but only if such will not result in an accounting charge to the
        Company, or (iv) by any combination of the foregoing. In addition, the
        exercise price may be payable in such other form(s) of consideration as
        the Committee in its discretion shall specify, including without
        limitation by loan (as described in Section 8) or by techniques that may
        result in an accounting charge to the Company.

        (c) Stock Grant Terms: Stock Grants under the Plan may, in the sole
        discretion of the Committee, but need not, be conditioned upon the
        Participant paying cash or cash-equivalent consideration or agreeing to
        forego other compensation for the shares of Common Stock covered by the
        Stock Grant. Stock Grants under the Plan may be subject to terms,
        provisions and conditions (including, but not limited to, vesting) as
        are established in the sole discretion of the Committee, provided such
        terms, provisions and conditions are consistent with the express
        provisions of the Plan. The terms, provisions and conditions may be
        contingent upon the passage of time, continued service or achievement of
        Company or individual performance goals, as specified by the Committee.

7.      ADMINISTRATION OF THE PLAN

        The Plan shall be administered by the Board, except to the extent the
        Board designates that the Plan shall be administered by the Compensation
        Committee of the Board (the Board or any such designated committee, the
        "Committee"). The Committee shall act pursuant to a majority vote or
        unanimous written consent.

                                       3
<PAGE>   4

        Subject to the express provisions of this Plan, the Committee shall be
        authorized and empowered to do all things necessary or desirable in
        connection with the administration of this Plan, including, without
        limitation: (a) to prescribe, amend and rescind rules relating to this
        Plan and to define terms not otherwise defined herein; (b) to prescribe
        the form of documentation used to evidence any Option or Stock Grant
        awarded hereunder, including provision for such terms as it considers
        necessary or desirable, not inconsistent with the terms established by
        the Committee; (c) to establish and verify the extent of satisfaction of
        any conditions to exercisability applicable to Options or to receipt or
        vesting of Stock Grants; (d) to determine whether, and the extent to
        which, adjustments are required pursuant to Section 9 hereof; and (e) to
        interpret and construe this Plan, any rules and regulations under the
        Plan and the terms and conditions of any Option or Stock Grant awarded
        hereunder, and to make exceptions to any procedural provisions in good
        faith and for the benefit of the Company.

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

8.      LOANS

        The Company may, if authorized by the Committee, make loans for the
        purpose of enabling a Participant to exercise Options and, if
        applicable, receive Common Stock awarded under the Plan and to pay the
        tax liability resulting from an Option exercise or Stock Grant under the
        Plan. The Committee shall have full authority to determine the terms and
        conditions of such loans. Such loans may be secured by the shares of
        Common Stock received upon exercise of such Option or receipt of such
        Stock Grant.

9.      ADJUSTMENT OF AND CHANGES IN THE STOCK

        If the outstanding securities of the class then subject to this Plan are
        increased, decreased or exchanged for or converted into cash, property
        or a different number or kind of shares or securities, or if cash,
        property or shares or securities are distributed in respect of such
        outstanding securities, in either case as a result of a reorganization,
        reclassification, dividend (other than a regular, quarterly cash
        dividend or an issuance of the class of securities then subject to this
        Plan as part of a public or private offering thereof) or other
        distribution, stock split, reverse stock split, spin-off or the like, or
        if substantially all of the property and assets of the Company are sold,
        then, unless the terms of such transaction shall provide otherwise, the
        maximum number and type of shares or other securities that may be issued
        under this Plan shall be appropriately adjusted. The Committee shall
        determine in its sole discretion the appropriate adjustment, if any, to
        be effected pursuant to the immediately preceding sentence. In addition,
        in connection with any such change in the class of securities then
        subject to this Plan, the Committee may make appropriate and
        proportionate adjustments in the number and type of shares or other
        securities or cash or other property that may be acquired pursuant to
        Options and Stock Grants theretofore

                                       4
<PAGE>   5

        awarded under this Plan and the exercise price of such Options or price,
        if any, of such Stock Grants.

        No right to purchase or receive fractional shares shall result from any
        adjustment in Options or Stock Grants pursuant to this Section 9. In
        case of any such adjustment, the shares subject to the Option or Stock
        Grant shall be rounded up to the nearest whole share of Common Stock.

10.     REGISTRATION, LISTING OR QUALIFICATION OF STOCK

        In the event that the Committee determines in its discretion that the
        registration, listing or qualification of the shares of Common Stock
        issuable under the Plan on any securities exchange or under any
        applicable law or governmental regulation is necessary as a condition to
        the issuance of such shares under the Option or Stock Grant, the Option
        or Stock Grant shall not be exercisable or exercised in whole or in part
        unless such registration, listing, qualification, consent or approval
        has been unconditionally obtained.

11.     TAXES

        The Committee may make such provisions or impose such conditions as it
        may deem appropriate for the withholding or payment by a Participant of
        any taxes which it determines are necessary or appropriate in connection
        with any issuance, exercise or vesting of any Options, Stock Grants or
        shares under this Plan, and the rights of a holder of an Option or Stock
        Grant or shares are subject to satisfaction of such conditions. The
        Company shall not be required to issue shares of Common Stock or to
        recognize the disposition of such shares until such obligations are
        satisfied. At the Participant's election, any such obligations may be
        satisfied by having the Company withhold a portion of the shares of
        Common Stock that otherwise would be issued to the holder of the Option
        or Stock Grant upon exercise of the Option or vesting or receipt of the
        Stock Grant or by surrendering to the Company shares of Common Stock
        previously acquired, provided that such will not result in an accounting
        charge to the Company. The Company and any affiliate of the Company
        shall not be liable to a Participant or any other persons as to any tax
        consequence expected, but not realized, by any Participant or other
        person due to the receipt of any Options or shares awarded hereunder.

12.     GOVERNING LAW

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

13.     ARBITRATION OF DISPUTES

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

                                       5
<PAGE>   6

        the Administrator's decision. Participants and optionholders explicitly
        waive any right to judicial review.

        Notice of demand for arbitration shall be made in writing to the
        Administrator within thirty (30) days after the applicable decision by
        the Administrator. Any such arbitration shall be heard in the District
        of Columbia, before a panel consisting of one arbitrator. Except as the
        parties to the arbitration may otherwise agree, the arbitrator shall be
        appointed in the first instance by the appropriate official in the
        District of Columbia office of the American Arbitration Association or,
        in the event of his or her unavailability by reason of disqualification
        or otherwise, by the appropriate official in the New York City office of
        the American Arbitration Association. The arbitrator and 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.

14.     EFFECTIVE DATE, AMENDMENT AND TERMINATION OF PLAN

        This Plan was adopted by the Board of Directors and approved by the
        stockholders of the Company on June 1, 2001 (the "Effective Date"). Any
        Options and Stock Grants awarded prior to the such date shall be
        contingent on such approval and, if such approval is not obtained, shall
        be null and of no effect.

        The Plan shall remain available for the grant of Options and Stock
        Grants until the tenth anniversary of the Effective Date. The Board may
        periodically amend the Plan as it determines appropriate, without
        further action by the Company's stockholders except to the extent
        required by applicable law. Any amendment to the Plan will not affect
        the rights and obligations arising under Options or Stock Grants
        theretofore awarded and then in effect. Notwithstanding the foregoing,
        and subject to adjustment pursuant to Section 9, the Plan may not be
        amended to increase the number of shares of Common Stock authorized for
        issuance under the Plan, unless any such amendment is approved by the
        Company's stockholders. The Plan may be earlier terminated at such
        earlier time as the Board may determine. Termination and expiration of
        the Plan will not affect the rights and obligations arising under
        Options or Stock Grants theretofore awarded and then in effect.

                                       6

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