Document:

<PAGE>   1
                                                                   Exhibit 10.12

                    AMERICAN MANAGEMENT SYSTEMS, INCORPORATED
                        1999 CONTRACTOR STOCK OPTION PLAN

I.       PURPOSES

         There are two purposes of the 1999 Contractor Stock Option Plan (the
"Plan"). The first is to offer to certain non-employees ("contractors") who
contribute materially to the successful operation of AMERICAN MANAGEMENT
SYSTEMS, INCORPORATED (the "Corporation") additional incentive and encouragement
to continue to serve as contractors of the Corporation by increasing their
personal participation in the Corporation through stock ownership. The second
purpose is to provide an alternative means of compensating contractors whose
performances contribute significantly to the success of the Corporation. The
Plan provides a means whereby optionees may purchase shares of the $0.01 par
value common stock of the Corporation (the "Common Stock") pursuant to options.
The options will be "nonqualified stock options," that is, options which are not
intended to qualify as incentive stock options under Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code").

II.      ADMINISTRATION

         The Plan shall be implemented and administered by a Stock Option/Award
Committee appointed by the Board of Directors of the Corporation (the "Board")
and composed of two or more directors of the Corporation.

         The Stock Option/Award Committee may be delegated the authority and
discretion to adopt and revise such rules and regulations as it shall deem
necessary for the administration of the Plan, and to determine, consistent with
the provisions of the Plan, the contractors to be granted options, the times at
which options shall be granted, the exercise price of the shares subject to each
option, the number of shares subject to each option, the vesting schedule of
options or whether the options shall be immediately vested, the times when
options shall terminate, and whether the exercise price of options shall be paid
in cash or stock. Acts of a majority of the members of the Stock Option/Award
Committee at a meeting at which a quorum is present, or acts approved in writing
by a majority of the members of the Stock Option/Award Committee, shall be the
valid acts of the Stock Option/Award Committee. The Stock Option/Award
Committee's actions, including any interpretation or construction of any
provisions of the Plan or any option granted hereunder, shall be final,
conclusive and binding unless otherwise determined by the Board at its next
regularly scheduled meeting.

         No member of the Stock Option/Award Committee or the Board, as the case
may be, shall be liable for any action or determination made in good faith with
respect to the Plan or any option granted under it.

III.     ELIGIBILITY; PARTICIPATION

         All contractors performing consulting services for the Corporation, or
any corporation, partnership, limited liability company, or other entity in
which the Corporation owns equity interests possessing at least 50 percent of
the voting power (a "Subsidiary"), who (i) are natural persons, (ii) render
services to the Corporation or a Subsidiary that do not directly or indirectly
promote or maintain a market for the Corporation's securities, (iii) has
contracted directly with the Corporation or a Subsidiary for the performance of
such services, (iv) have, if required by the Stock Option/Award Committee,
executed and delivered to the Corporation or a Subsidiary confidentiality and
non-disclosure agreements in a form acceptable to the Corporation and (v)
otherwise meet minimum requirements established by the Stock Option/Award
Committee, shall be eligible to receive options under the Plan. A contractor who
has been granted an option may be granted an additional option or options or
rights under the Plan if the Stock Option/Award Committee shall so determine.
The granting of an option under the Plan shall not affect any outstanding stock
option previously granted to a contractor under the Plan or any other plan of
the Corporation.

         Nothing contained in the Plan, or in any option granted pursuant to the
Plan, shall confer upon any contractor the right to continue as a contractor of
the Corporation or any Subsidiary, or shall interfere in any way with the right
of the Corporation or a Subsidiary to terminate the relationship with any such
contractor at any time.

IV.      BASIS OF GRANT

         Options shall be granted to contractors either (a) on the basis of
awards earned under the Corporation's incentive programs for contractors, as in
effect from time to time, or (b) as the Stock Option/Award Committee may
determine from time to time. If options are granted based on (a) hereof, then
options based thereon shall be earned

                                      A-1
<PAGE>   2

based on the contractor's success in meeting predetermined performance standards
during one or more years. Options shall be granted under (a) hereof, if at all,
at the time that the Corporation determines in its judgment that the contractor
has met or will meet the contractor's predetermined performance standards during
the requisite periods.

V.       NUMBER OF SHARES AND OPTIONS

         The number of shares authorized to be issued pursuant to options
granted under the Plan is 20,000 shares, subject to adjustment in accordance
with the provisions of paragraph G of Section VI hereof. Shares subject to
options granted under the Plan may be authorized and unissued shares or shares
previously acquired or to be acquired by the Corporation and held in treasury.
Any shares subject to an option which expires for any reason or is terminated
unexercised as to such shares may again be subject to an option granted under
the Plan.

VI.      TERMS AND CONDITIONS OF OPTIONS

         A. Option Agreement. Each option granted pursuant to the Plan shall be
evidenced by an agreement ("Option Agreement") between the Corporation and the
optionee receiving the option. Option Agreements (which need not be identical)
shall state that the option is a nonqualified stock option, shall designate the
number of shares and the exercise price of the options to which they pertain,
shall set forth the vesting schedule of the options or state that the options
are vested immediately. The Option Agreements shall be in writing, dated as of
the date the option is granted, and shall be executed on behalf of the
Corporation by such officers as the Stock Option/Award Committee shall
authorize. Option Agreements generally shall be in such form and contain such
additional provisions as the Stock Option/Award Committee shall prescribe, but
in no event shall they contain provisions inconsistent with the provisions of
the Plan.

         B. Exercise of Options. Options are exercisable only to the extent they
are vested. Options granted to contractors shall vest either immediately or
periodically pursuant to a schedule selected by the Stock Option/Award Committee
at the same time the option is granted. The Option Agreement shall either state
that the options are fully vested upon grant and immediately exercisable in full
or shall set forth the vesting schedule selected by the Stock Option/Award
Committee.

         Optionees may exercise at any time or from time to time all of any
portion of a vested option.

         C. Repurchase Amendment. Options may be amended to advance the date on
which the option shall vest. If an option is so amended, the amendment also may
provide that the shares which would not have been vested under the vesting
schedule set forth in the Option Agreement shall be subject to repurchase by the
Corporation for a specified period of time at the original exercise price if the
optionee is terminated for any reason prior to expiration of the repurchase
period. The amendment shall be evidenced by a written agreement (the "Repurchase
Amendment") between the Corporation and the optionee, shall be executed on
behalf of the Corporation by such officers as the Stock Option/Award Committee
shall authorize, and shall be in such form and contain such provisions as the
Stock Option/Award Committee shall prescribe.

         D.   Exercise Price.

              1. Fair Market Value. The price at which all stock options granted
pursuant to the Plan may be exercised shall be the fair market value of the
Common Stock on the date of grant. For purposes of the Plan, the term "fair
market value" shall be defined as the closing bid price of the Common Stock
quoted over The Nasdaq Stock Market in the National Market on the date of grant
of the option, or if there is no trade on such date, the closing bid price on
the last preceding date upon which such Common Stock was traded. In the event
that the Common Stock is not traded over the Nasdaq Stock Market, the term fair
market value shall be defined as the closing bid price of the Common Stock
published in the National Daily Stock Quotation Summary on the date of grant of
the option, or if there are no quotations published on such date, on the most
recent date upon which such Common Stock was quoted. In the event that the
Common Stock is listed upon an established stock exchange or exchanges, such
fair market value shall be deemed to be the highest closing price of the Common
Stock on such stock exchange or exchanges on the date the option is granted, or
if no sale of the Common Stock shall have been made on any exchange on that
date, then the next preceding day on which there was a sale of such stock.

              2. Payment. Payment of the exercise price may be (i) in cash, (ii)
by delivery to the Corporation of (x) irrevocable instructions to deliver to a
broker the stock certificates representing the shares for which the option is
being exercised, and (y) irrevocable instructions to the broker to sell such
shares and promptly deliver to the Corporation the portion of the proceeds equal
to the exercise price, or in the sole discretion of the Stock Option/Award
Committee, (iii) by exchange of Common Stock of the Corporation, or, (iv) partly
in cash and partly by exchange of

                                      A-2
<PAGE>   3

such Common Stock, provided that for purposes of (iii) and (iv) the value of
such Common Stock shall be the fair market value on the date of exercise, and
further provided that such Common Stock shall have been held by the optionee for
a period of at least six (6) months prior to the date of exercise.

         The Stock Option/Award Committee may permit deferred payment of all or
any part of the purchase price of the shares purchased pursuant to the Plan,
provided the par value of the shares must be paid in cash.

         E. Suspension or Termination of Options. Subject to earlier termination
as provided below, all stock options shall expire, and all rights granted under
Option Agreements shall become null and void, on the date specified in the
Option Agreement, which date shall be no later than five (5) years after the
stock options are granted.

         Upon termination (including expiration) of a contractor's contract
relationship with the Corporation or a Subsidiary for any reason other than by
mutual termination by the Corporation and the contractor of such contracting
relationship following completion of ten (10) or more years of continuous
service by a contractor, death or disability, all options held by such
contractor which are not exercisable on the date of such termination shall
expire. To the extent stock options are exercisable on such date, shares subject
to stock options held by a contractor may be purchased during the "exercise
period," after which the stock options shall expire and all rights granted under
the Option Agreement shall become null and void. The "exercise period" for
shares subject to stock options held by a contractor, his heirs, legatees or
legal representatives, as the case may be, ends on the earlier of (i) the date
on which the stock option expires by its terms, or (ii) (A) except in the case
of death, disability, or mutual termination of a contractor following completion
of ten (10) or more years of continuous service as a contractor, thirty (30)
days after the date of the contractor's termination, or (B) in the case of
death, disability, or mutual termination of a contractor following completion of
ten (10) or more years of continuous service, one (1) year after the date of the
contractor's termination.

         If the Director of Human Resources of the Corporation or his or her
designee reasonably believes an optionee has committed an act of misconduct as
described in this paragraph, the Director of Human Resources may suspend the
optionee's rights to exercise any option pending a determination by the Stock
Option/Award Committee. If the Stock Option/Award Committee determines an
optionee has committed an act of embezzlement, fraud, dishonesty, nonpayment of
any obligation owed to the Corporation, breach of fiduciary duty, breach of any
agreement relating to competitive activities or non-solicitation of customers or
employees, or deliberate disregard of Corporation rules resulting in loss,
damage or injury to the Corporation, or if an optionee makes an unauthorized
disclosure of any trade secret or confidential information, engages in any
conduct constituting unfair competition, induces any customer to breach a
contract with the Corporation or induces any principal for whom the Corporation
acts as agent to terminate such agency relationship, neither the optionee nor
his or her estate shall be entitled to exercise any option whatsoever. In making
such determination, the Stock Option/Award Committee shall act fairly and shall
give the optionee an opportunity to appear and present evidence on his or her
behalf at a hearing.

         F. Non-Transferability of Options. Options pursuant to the Plan are not
transferable by the optionee otherwise than by will or the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined by
the Code, Title I of the Employee Retirement Income Security Act of 1974, as
amended, or the rules thereunder. Except as permitted by the preceding sentence,
no option nor any right granted under an Option Agreement shall be transferred,
assigned, pledged, hypothecated or disposed of in any other way (whether by
operation of law or otherwise), or be subject to execution, attachment or
similar process, and each option shall be exercisable during the optionee's
lifetime only by the optionee. Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of such options or of such other rights
contrary to the provisions hereof, or to subject such options or such other
rights to execution, attachment or similar process, such options and such other
rights shall immediately terminate and become null and void.

         G. Adjustment Provisions. Except as otherwise provided in this
paragraph G, in the event of changes in the Common Stock by reason of any stock
split, combination of shares, stock dividend, reclassification, merger,
consolidation, reorganization, recapitalization or similar adjustment, or by
reason of the dissolution or liquidation of the Corporation, appropriate
adjustments may be made in (i) the aggregate number of or class of shares
available under the Plan, and (ii) the number, class and exercise price of
shares remaining subject to all outstanding options. Whether any adjustment or
modification is to be made as a result of the occurrence of any of the events
specified in this section, and the extent thereof, shall be determined by the
Board, whose determination shall be binding and conclusive. Notwithstanding the
previous sentence, in the event of a stock split, stock dividend or other event
that is functionally equivalent to a stock split or stock dividend, (i) the
number of shares subject to then-outstanding options will be adjusted so that
upon exercise of the option, the holder of each option will be entitled to
receive the

                                      A-3
<PAGE>   4

number of shares or other securities which the holder would have been entitled
to receive after the event had the option been exercised immediately before the
earlier of the date of the consummation of the event or the record date of the
event (the "event date"), (ii) the price of each share subject to
then-outstanding options will be adjusted proportionately so that the aggregate
purchase price for all then-outstanding options will be the same immediately
after the event date as before the event date, (iii) an appropriate and
proportionate adjustment will be made as of the event date in the maximum number
of shares that may be issued pursuant to options granted under the Plan, (iv)
any adjustment with respect to then-outstanding incentive stock options will be
made in a transaction that does not constitute a modification under Section
424(h)(3) of the Code, and (v) any option to purchase fractional shares
resulting from an adjustment will be eliminated. Existence of the Plan or of
Option Agreements pursuant to the Plan shall in no way impair the right of the
Corporation or its stockholders to make or effect any adjustments,
recapitalizations, reorganizations or other changes in the Corporation's capital
structure or its business, or any merger, consolidation, dissolution or
liquidation of the Corporation, or any issue of bonds, debentures, preferred or
prior preference stock ahead of or affecting the Common Stock of the
Corporation, or any grant of options on its stock not pursuant to the Plan.

VII.     RIGHTS AS A SHAREHOLDER

         Optionees shall not have any of the rights and privileges of
shareholders of the Corporation in respect of any of the shares subject to any
option granted pursuant to the Plan unless and until a certificate, if any,
representing such shares shall have been issued and delivered.

VIII.    WITHHOLDING

         To the extent required by applicable federal, state, local or foreign
law, an optionee shall make arrangements satisfactory to the Corporation for the
satisfaction of any withholding tax obligations that arise by reason of an
option exercise or the disposition of shares acquired upon exercise of a stock
option. The Corporation shall not be required to issue shares until such
obligations are satisfied. The Stock Option/Award Committee may permit these
obligations to be satisfied by having the Corporation withhold a portion of the
shares of Common Stock that otherwise would be issued upon exercise of the
option, or to the extent permitted, by permitting the optionee to tender shares
owned by the optionee.

IX.      RECEIPT OF PROSPECTUS

         Upon the execution of an Option Agreement, each optionee receiving
options pursuant to the Plan shall be given a Prospectus, as filed by the
Corporation under the Securities Act of 1933, including any exhibits thereto,
describing the Plan. Each Option Agreement shall contain an acknowledgment by
the optionee that the requirements of this section have been met.

X.       SUCCESSORS

         The provisions of the Plan shall be binding upon, and inure to the
benefit of, all successors of any optionee, including, without limitation, his
estate and the executors, administrators or trustees thereof, his heirs and
legatees, and any receiver, trustee in bankruptcy or representative of creditors
of such optionee.

XI.      TERMINATION AND AMENDMENT OF THE PLAN

         The Plan shall remain in effect until December 3, 2009, unless sooner
terminated as hereinafter provided. The Board shall have complete power and
authority at any time to terminate the Plan or to make such modification or
amendment thereof as it deems advisable and may from time to time suspend,
discontinue or abandon the Plan, provided that no such action by the Board shall
adversely affect any right or obligation with respect to any grant theretofore
made.

XII.     INDEMNIFICATION OF BOARD AND COMMITTEE

         In addition to such other rights of indemnification as they may have as
directors or as members of the Board or the Stock Option/Award Committee, as the
case may be, the members of the Board and the Stock Option/Award Committee shall
be indemnified by the Corporation against the reasonable expenses, including
attorneys' fees actually and necessarily incurred in connection with the defense
of any action, suit or proceeding, or in connection with any appeal therein, to
which they or any of them may be a party by reason of any action taken or
failure to act under or in connection with the Plan, Option Agreements or any
option granted hereunder, and against all amounts paid by them in settlement
thereof (provided such settlement is approved by legal counsel selected by

                                      A-4
<PAGE>   5

the Corporation) or paid by them in satisfaction of a judgment in any such
action, suit or proceeding, except in relation to matters as to which it shall
be adjudged in such action, suit or proceeding that such member is liable for
negligence or misconduct in the performance of his duties; provided that within
sixty (60) days after institution of any such action, suit or proceeding a
member shall in writing offer the Corporation the opportunity, at its own
expense, to defend the same.

XIII.    MERGER OF THE CORPORATION

         Unless the options issued pursuant to this Plan are assumed in a
transaction to which Section 424(a) of the Code applies, if the Corporation
shall (i) merge or consolidate with another corporation under circumstances
where the Corporation is not the surviving corporation, (ii) sell all, or
substantially all of its assets, or (iii) liquidate or dissolve, then each
option shall terminate on the date and immediately prior to the time such
merger, consolidation, sale, liquidation or dissolution becomes effective or is
consummated, provided that the holder of the option shall have the right
immediately prior to the effectiveness or consummation of such merger,
consolidation, sale, liquidation or dissolution, to exercise any or all of the
vested portion of the option, unless such option has otherwise expired or been
terminated pursuant to its terms or the terms hereof. In the event of such
merger, consolidation, sale, liquidation or dissolution, any portion of an
outstanding option which would have vested within one year after the date on
which such merger, consolidation, sale, liquidation or dissolution becomes
effective or is consummated shall vest immediately prior to the effectiveness or
consummation of such merger, consolidation, sale, liquidation or dissolution and
shall be part of the vested portion of the option which the holder of the option
may exercise.

XIV.     EFFECTIVE DATE

         The Plan was adopted by the Board on December 3, 1999, and became
effective as of such date.

                                      A-5
<PAGE>   6

                                                                       EXHIBIT A

                             ADDITIONAL INFORMATION

         TAX CONSEQUENCES

         Information regarding the federal income tax consequences to American
Management Systems, Incorporated (the "Corporation") and to optionees of options
granted under the 1999 Contractor Stock Option Plan (the "Plan") follows. This
information is not intended to be exhaustive and is only intended to briefly
summarize the federal income tax statutes, regulations and currently available
agency interpretations thereof, and is intended to apply to the Plan as normally
operated. It is recommended that optionees consult their own professional tax
advisors for personal and specific advice about options.

         An optionee has no tax consequences from the grant or vesting of an
option. Upon exercise of an option, the optionee has compensation income taxable
at ordinary income tax rates on the amount by which the fair market value of the
shares of common stock, $0.01 par value per share, of the Corporation (the
"Common Stock") received as of the date of exercise exceeds the exercise price.
The Corporation is entitled to a deduction equal to the amount of compensation
income to the optionee as long as it complies with applicable reporting
requirements with respect to the optionee's compensation income. Upon the sale
of Common Stock acquired through the exercise of an option, any difference
between the amount realized and the fair market value of the Common Stock as of
the date of exercise will be capital gain or loss.

         The Plan is not qualified under Section 401(a) of the Code.

         EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 ("ERISA")

         The Plan is not subject to any provisions of ERISA.

         DOCUMENTS INCORPORATED BY REFERENCE AND FURTHER INFORMATION

         The Corporation hereby incorporates by reference (i) its Annual
Reports on Form 10-K for the fiscal years ended December 31, 1998 and December
31, 1999, (ii) its Preliminary Proxy Statement in connection with the 1999
Annual Meeting of Shareholders, (iii) its Definitive Proxy Statement in
connection with the 1999 Annual Meeting of Shareholders, (iv) its Quarterly
Report on Form 10-Q for the quarter ended March 31, 1999, (v) its Current
Report on Form 8-K filed on July 20, 1999, (vi) its Quarterly Report on Form
10-Q for the quarter ended June 30, 1999, (vii) its Quarterly Report on Form
10-Q for the quarter ended September 30, 1999, and (viii) the description of
the Corporation's Common Stock contained in its Registration Statement on Form
8-A filed under Section 12 of the Exchange Act, including any amendment or
report filed for the purpose of updating such description. In addition, all
documents subsequently filed by the Corporation pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a
post-effective amendment which indicates that all securities offered hereby
have been sold or which deregisters all securities then remaining unsold, shall
be deemed to be incorporated by reference in this Prospectus and to be a part
hereof from the date of filing of such documents.

         A copy of any document incorporated by reference herein but not
delivered with this Prospectus will be furnished without charge upon written or
oral requests. Written requests for documents or additional information about
the Plan and its administrator should be addressed to American Management
Systems, Incorporated, c/o Secretary, 4050 Legato Road, Fairfax, Virginia 22033.
Oral requests for documents or additional information should be directed to
(703) 267-8000.

         Copies of the Corporation's most recent Annual Report on Form 10-K,
Proxy Statement, including Financial Report, and Annual Report to Shareholders
accompany the copy of this Prospectus furnished to participants in the Plan not
otherwise receiving copies thereof. The Corporation will promptly furnish
without charge an additional copy of any such documents to any participant who
requests it.

                                      A-6<PAGE>   1
                                                                   EXHIBIT 10.22

                              EMPLOYMENT AGREEMENT

           EMPLOYMENT AGREEMENT (this "Agreement") made effective for all
purposes and in all respects as of the first day of July 1, 1999, by and between
(i) THE NOSTALGIA NETWORK, INC., a Delaware corporation (hereinafter referred to
as "Employer"), and (ii) SQUIRE RUSHNELL (hereinafter referred to as
"Employee").

           WHEREAS, Employer desires to employ Employee, as its President and
Chief Executive Officer;

           WHEREAS, Employee desires to be employed by Employer in the aforesaid
capacity; and

           WHEREAS, Employer and Employee desire to set forth in writing the
terms and conditions of their agreements and understandings.

           NOW, THEREFORE, in consideration of the foregoing, the mutual
promises herein contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

1.     TERM OF AGREEMENT

       The term (the "Term") of employment under this Agreement shall be one (1)
       year commencing on July 1, 1999 (the "Effective Date") and ending on June
       30, 2000. This Agreement shall automatically renew for a one-year period
       (a "Renewal Term") unless either party gives at least ninety-days (90)
       written notice of non-renewal. As utilized herein "Term" shall refer to
       the Term and any Renewal Term unless the context clearly indicates
       otherwise.

2.     DUTIES OF EMPLOYEE

       A.     Duties and Responsibilities: Subject to the provisions of this
              Agreement Employer shall employ Employee and Employee shall serve
              as Employer's President and Chief Executive Officer. Subject to
              the terms and conditions set forth herein, Employee shall
              discharge the obligations and responsibilities normally associated
              with such office and shall perform such other duties and
              responsibilities as the Board of Directors of Employer (the
              "Board") or the Executive Committee of the Board (the "Executive
              Committee") shall determine from time to time that are consistent
              with this Agreement. Employee agrees to perform such duties
              faithfully and to the best of his ability. Subject to such
              direction as may be given by the Board which is not inconsistent
              with this Agreement, all employees of Employer shall report to
              Employee or his designee(s) and Employee shall report only to the
              Board and the Executive Committee. Employee shall produce and/or
              acquire programming, in compliance with the then applicable Board
              approved twelve month annual operating budget for Employer (the
              "Budget") and utilize his best efforts and reasonable business
              judgment to cause such programming to fit Employer's niche of
              values-based programming that appeals to the 49+ demographic
              group. Employee shall use his best efforts and reasonable business
              judgment to cause Employer's programming to achieve the equivalent
              of a 0.6 Nielsen rating and to cause Employer's original
              programming to constitute at least 25% of the Employer's prime
              time (7 p.m. to 11 p.m.)

<PAGE>   2

              programming line-up. Employee shall not be required to move out of
              the Washington, D.C. metropolitan area in connection with the
              performance of his duties and responsibilities under this
              Agreement. Employee represents and warrants to Employer that he is
              capable of performing the essential functions required by this
              Agreement with or without reasonable accommodation.

       B.     Full-Time Efforts: Employee shall devote his full-time efforts to
              his duties under this Agreement. Employee will not, directly or
              indirectly, engage or participate in any activities which conflict
              with the business of Employer, unless consented to in writing by
              Employer.

       C.     Hiring of Management: Employee shall consult with and advise the
              Board or the Executive Committee with respect to hiring of all
              senior management personnel; provided, however, that the Board or
              the Executive Committee shall have the authority to prohibit the
              hiring of any prospective member of senior management proposed by
              Employee. For purposes of this Agreement, "senior management"
              shall include Employer's General Counsel, Chief Financial Officer,
              Vice President of Programming and Production, Vice President of
              Marketing and Affiliate Relations, Vice President of Affiliate
              Relations, and all other such persons who serve in the capacity of
              a Vice President of Employer.

3.     COMPENSATION

       As compensation for the services to be rendered to Employer by Employee
       under this Agreement, Employee shall receive the following compensation:

       A.     Base Salary: Employee shall be paid a base salary ("Base Salary")
              of Two Hundred Seventy Thousand Dollars ($270,000) per annum, to
              be paid in accordance with Employer's standard policies,
              increasing at a rate of 20% for each Renewal Term, if any.

       B.     Benchmark Bonus: In addition to the Base Salary, Employee shall be
              entitled to receive a benchmark bonus (the "Benchmark Bonus") of
              eighty thousand dollars ($80,000) (one hundred thousand dollars
              ($100,000) in any Renewal Term) if Employer satisfies all of the
              following criteria during the Term or any Renewal Term (the
              "Benchmark Bonus Criteria"):

              (1)    Achieves from July 1, 1999 through June 30, 2000 revenue
                     derived from the ordinary and customary business operations
                     of Employer and excluding the proceeds of any extraordinary
                     transactions, borrowings or equity or debt financings
                     ("Revenue") of at least $2,776,684.50 plus Revenue in an
                     amount equal to, or greater than, the Revenue for the
                     Employer's first two fiscal quarters of 2000 (January 1,
                     2000 through June 30, 2000) provided for in the Budget for
                     the year 2000 (the "2000 Budget") (the "Revenue
                     Criterion"). Nothing in this Agreement shall restrict the
                     Board in establishing the 2000 Budget; provided that for
                     purposes of this Section 3B(1), the Revenue for the first
                     two fiscal quarters in the 2000 Budget shall be the greater
                     of the actual Revenue for the first two fiscal quarters in
                     the 2000 Budget or ten percent (10%) in excess of the
                     Revenue for the first two fiscal quarters in the Budget for
                     1999 (the "1999 Budget").

                                        2

<PAGE>   3

              (2)    Incurs a loss from operations, excluding interest expense
                     (a "Loss"), from July 1, 1999 through June 30, 2000, not
                     greater than $8,277,651 plus the Loss, if any, projected in
                     the 2000 Budget for the first two fiscal quarters of 2000
                     (January 1, 2000 to June 30, 2000) (the "Loss Criterion").
                     Nothing in this Agreement shall restrict the Board in
                     establishing the 2000 Budget; provided that for purposes of
                     this Section 3(B)(2), the Loss for the first two fiscal
                     quarters in the 2000 Budget shall be the lesser of the
                     actual Loss for the first two fiscal quarters in 1999 or
                     ten percent (10%) in excess of the Loss for the first two
                     fiscal quarters in the 1999 Budget.

              (3)    Achieves during the period July 1, 1999 to June 30, 2000
                     a net gain of 750,000 subscribers based on Employer's
                     subscriber count as reported in Employer's monthly reports
                     to the Board to reflect Employer performance during the
                     Term and which shall be based on the requirements of a
                     subscriber to be counted by Nielsen ratings (the
                     "Subscriber Criterion").

       The Revenue Criterion, Loss Criterion and Subscriber Criterion for any
       Renewal Term shall be based upon the amounts set forth in the applicable
       Budgets or otherwise established by the Board for the fiscal periods
       occurring during any Renewal Term. All financial calculations, including,
       but not limited to, of Revenue or Loss shall be based upon the internal
       records of Employer which shall be maintained and recorded consistent
       with past practice and, where applicable, in accordance with generally
       accepted accounting principals.

       C.     Alternate Benchmark Bonus: If Employer achieves only one of the
              Benchmark Bonus Criteria and at least ninety percent (90%) of the
              other two Benchmark Bonus Criteria, then Employee shall be
              entitled to an alternative Benchmark Bonus (the "Alternative
              Benchmark Bonus") of $26,667 ($33,334 for any Renewal Term). If
              Employer achieves any two of the Benchmark Bonus Criteria and at
              least ninety percent (90%) of the other Benchmark Bonus Criteria,
              Employee shall be entitled to an Alternative Benchmark Bonus of
              $53,334.00 ($66,668 for any Renewal Term).

       D.     Revenue Bonus: If Employer exceeds the Revenue Criterion and at
              least ninety percent (90%) of the each of the Loss Criterion and
              the Subscriber Criterion, Employee shall receive ten percent (10%)
              of all Revenue for the twelve months occurring during the Term or
              any Renewal Term in excess of the Revenue Criterion subject to
              reduction by ten cents for every subscriber below the Subscriber
              Criterion and ten percent of the amount, if any, by which
              Employer's actual Loss for the twelve months occurring during the
              Term or any Renewal Term exceeds the Loss Criterion.

       E.     Subscriber Bonus: If Employer exceeds the Subscriber Criterion and
              at least ninety percent (90%) of each of the Revenue Criterion and
              Loss Criterion, Employee shall receive ten cents for every
              subscriber net gained for the twelve months occurring during the
              Term or any Renewal Term in excess of the Subscriber Criterion in
              the ordinary course of Employer's business and excluding any
              subscribers obtained by Employer through any extraordinary
              transaction including, but not limited to, an acquisition, merger,
              strategic partnership or similar transaction unless Employee was a
              materially determinative cause of, or acted as a finder with
              respect to, such transaction. Any Subscriber Bonus otherwise

                                        3

<PAGE>   4

              earned by Employee shall be reduced by ten percent of the amount,
              if any, by which the Revenue Criterion exceeds the Revenue for the
              twelve months occurring during the Term or any Renewal Term and
              ten percent of the amount, if any, by which the Loss for the
              twelve months occurring during the Term or any Renewal Term
              exceeds the Loss Criterion.

       F.     Payment of Bonus: Any Bonus earned during the Term or any Renewal
              Term shall be paid to Employee by August 15 following the
              conclusion of the Term or any Renewal Term during which the Bonus
              was earned. Employee may elect to receive refundable bonus
              advances with respect to a Benchmark Bonus or Alternative
              Benchmark Bonus (a "Bonus Advance") for each fiscal quarter
              occurring within the Term or any Renewal Term if at the end of
              such quarter the Employer determines that either a Benchmark Bonus
              or Alternative Benchmark Bonus has been earned on a cumulative
              annualized basis determined by dividing the applicable cumulative
              year-to-date results of operations by the number of months
              included therein multiplied by twelve (the "Annualized Results").
              Employer shall pay to Employee a Bonus Advance of $17,778 if the
              Annualized Results project a Benchmark Bonus or $8,889 if the
              Annualized Results project a $53,334 Alternative Benchmark Bonus.
              Any Bonus Advance shall be paid on October 30, January 30 or April
              30 during the Term or any Renewal Term during which such Bonus
              Advance is earned. The balance of any Benchmark Bonus or
              Alternative Benchmark Bonus together with any Subscriber Bonus or
              Revenue Bonus will be paid to Employee on August 15 following the
              conclusion of the Term or any Renewal Term during which such bonus
              was earned. In the event Employee receives a Bonus Advance with
              respect to any Benchmark Bonus or Alternative Benchmark Bonus
              which ultimately is determined not to have been earned by
              Employee, Employer may deduct the amount of any such excess Bonus
              Advance from any future payment due to Employee under this
              Agreement or otherwise.

       G.     Health Insurance: Employer agrees to provide Employee with health
              care insurance providing coverage equivalent to the health care
              insurance Employee now holds.

       H.     Automobile: Employer shall pay to Employee Six Hundred Dollars
              ($600) per month for the purpose of leasing an automobile.
              Employer shall be responsible for payment of all insurance and
              maintenance and fuel for the automobile and provide Employee with
              a parking space at its offices at 650 Massachusetts Avenue, N.W.,
              Washington, D.C. at no expense to Employee.

       I.     Vacation: Employee shall be entitled to four (4) weeks of paid
              vacation, plus normal company holidays and three (3) personal
              days. Vacation time and personal days shall not accrue from year
              to year, and unused vacation time and personal days shall be
              forfeited as of the end of each Term. Employee shall receive no
              compensation for unused or forfeited vacation or personal days.
              Employee shall receive no compensation for any unused vacation or
              personal days if Employee is terminated for cause or terminates
              this Agreement without cause.

                                        4

<PAGE>   5

       J.     Business Expenses: Employee shall be entitled to reimbursement by
              Employer of customary and reasonable business expenses provided
              that such expenses may not exceed the amount provided for such
              expenses in the Budget or be inconsistent with Employer's expense
              policies.

       K.     Life Insurance: Subject to Employee qualifying for coverage at
              standard rates not to exceed $5,030.00 per year, Employer agrees
              to purchase and maintain during the Term, a one-million dollar
              ($1,000,000.00) term life insurance policy insuring Employee's
              life of which Employee's designee is the named beneficiary.

       L.     Disability Insurance: Subject to Employee qualifying for coverage
              at standard rates, Employer agrees to purchase and maintain during
              the Term, long-term disability insurance for the benefit of
              Employee with rates not to exceed $630.00 per month. Employee
              agrees to submit, from time to time, to any physical examinations
              required to obtain or maintain such coverage or the life insurance
              coverage described in Section 3K.

4.     PROGRAM RATINGS: In order to demonstrate the value of Employer's
       programming to cable operators and advertisers and to provide sound
       evidence to investors that there is viewer demand for Employer's original
       and acquired programming, Employee shall engage on behalf of Employer and
       at Employer's expense, reputable researchers to rate Employer's original
       and acquired prime time (7 p.m. to 11 p.m.) programming within six weeks
       of the completion of new programs and/or pilots. Such researchers shall
       provide indices recognized by cable operators and advertisers as a
       reliable measure of Employer's audience appeal.

5.     TERMINATION: Employee's employment hereunder may be terminated prior to
       the expiration of any Term upon the occurrence of any of the following:

       A.     Termination for Cause: Employee's employment hereunder and all of
              Employer's obligations hereunder (except as hereinafter provided)
              may be terminated by Employer immediately for Cause (as
              hereinafter defined) by giving written notice of such termination
              to Employee. For purposes of this Agreement, "Cause" shall mean:
              (i) Employee's willful misconduct, (ii) Employee's willful
              disregard of lawful instructions of the Board or Executive
              Committee which are consistent with Employee's position relating
              to the business of Employer, (iii) Employee's material neglect of
              duties or material failure to act, (iv) Employee's commission of
              an act constituting fraud, embezzlement or a felony, (v)
              Employee's abuse of alcohol or other drugs or controlled
              substances, or conviction of a crime involving moral turpitude, or
              (vi) Employee's material breach of this Agreement; provided,
              however, that the failure of Employer to achieve any of the
              Benchmark Bonus Criteria or earn any other bonus provided for in
              this Agreement shall not constitute grounds for termination
              provided Employee has devoted the requisite level of effort and
              diligence in seeking to cause Employer to achieve such criteria.
              Termination for Cause shall take effect immediately upon giving of
              written notice to Employee unless Employer determines in its
              reasonable discretion that the actions giving rise to the
              termination are capable of cure, and Employee effects a cure
              within 15 days of receipt of such notice. In the event of
              termination for Cause, Employee will be entitled only to Base
              Salary

                                        5

<PAGE>   6

              through the date of termination and not to any Benchmark Bonus,
              Alternative Benchmark Bonus, Revenue Bonus or Subscriber Bonus
              (except to the extent already earned, due and owing with respect
              to a prior Renewal Term). Upon termination for Cause, Employee
              will not be entitled to any other benefits described hereunder,
              including, but not limited to, any Benchmark Bonus, Alternative
              Benchmark Bonus, Revenue Bonus or Subscriber Bonus with respect to
              the Term or any Renewal Term in which termination occurs.

       B.     Death and Disability: Except as otherwise provided in this Section
              5B, this Agreement shall be terminated by, and upon, the death of
              Employee and also may be terminated by Employer by giving written
              notice of termination to Employee if Employee shall be rendered
              incapable by any physical or mental illness or disability from
              performing his essential functions under this Agreement for a
              period in excess of sixty (60) consecutive or ninety (90)
              non-consecutive days during the Term or any Renewal Term. Any
              notice of termination by reason of disability hereunder must be
              given while Employee is disabled. Upon death or disability,
              Employee or his representative will be entitled to payment of any
              earned portion of the Benchmark Bonus, Alternative Benchmark
              Bonus, Revenue Bonus and/or Subscriber Bonus for the Term or any
              Renewal Term in which termination occurs, calculated based upon
              the internal records of Employer and prorated to the date of
              termination and paid no later than 45 days after termination
              pursuant to this Section 5B.

       C.     Termination by Employee for Good Reason: Employee shall have the
              right to terminate this Agreement on 30 days written notice to
              Employer if (i) the Board takes action that prevents Employee from
              performing his duties as President and Chief Executive Officer and
              such action continues for a period of 15 days or Employer
              materially breaches this Agreement (unless such breach is cured
              within the 15 day notice period, or if the breach is not capable
              of cure within 15 days, unless Employer promptly commences and
              diligently continues to effect a cure), or (ii) if, as a result of
              a strategic alliance entered into by Employer, Employee ceases
              effectively to have the authority to manage and conduct the
              operations of Employer. Any termination pursuant to this Section
              5C will entitle Employee to severance payments due pursuant to
              Section 6 and for all other purposes of this Agreement shall be
              deemed a termination of Employee's services by Employer without
              Cause.

       D.     Resignation: If Employee voluntarily terminates this Agreement
              (other than for good reason pursuant to Section 5C), he will be
              entitled only to Base Salary through the date of termination and
              any Benchmark Bonus, Alternative Benchmark Bonus, Revenue Bonus
              and/or Subscriber Bonus earned with respect to a prior Renewal
              Term but unpaid as of the date of termination. Employee shall have
              no further right to any payment provided hereunder including but
              not limited to Base Salary, Benchmark Bonus, Alternative Benchmark
              Bonus, Revenue Bonus and/or Subscriber Bonus, benefits, and/or
              severance pursuant to Section 6, from and after the date of
              termination or with respect to the Term or any Renewal Term in
              which such termination occurs.

                                        6

<PAGE>   7

       E.     Payments Already Due: Any payments already due and payable at the
              time of resignation or termination shall be paid at the later of
              (i) resignation or termination, or (ii) when otherwise due
              pursuant to this Agreement or as otherwise required by law.

6.     SEVERANCE
       Should Employer not renew this Agreement for a Renewal Term, Employer
       shall pay Employee a total severance payment of One Hundred Thirty Five
       Thousand Dollars ($135,000) payable in two payments of sixty seven
       thousand five hundred dollar ($67,500) each. The first payment shall be
       made upon termination of this Agreement and the second payment shall be
       made on the sixtieth day following termination of this Agreement.

7.     DIRECTOR/OFFICER LIABILITY
       Employer shall indemnify Employee in connection with Employee's service
       as an officer of Employer to the extent and in the manner provided in
       Employer's Certificate of Incorporation and Bylaws as in effect from time
       to time.

8.     NO COMPETING EMPLOYMENT; SECRECY; INJUNCTIVE RELIEF

       A.     No Competing Employment: Upon termination of this Agreement due to
              completion of the Term, Employee's voluntary resignation (other
              than for good reason pursuant to Section 5C) or termination for
              Cause and for six months thereafter (such period being referred to
              hereinafter as the "Restricted Period"), Employee shall not,
              without the prior written consent of the Board, directly or
              indirectly, whether as owner, consultant, employee, partner,
              venturer, agent, through stock ownership, investment of capital,
              lending of money or property, rendering of services, or otherwise,
              compete with Employer in the Business (as defined below), or
              assist, become interested in, or be connected with, any
              corporation, firm, partnership, joint venture, sole proprietorship
              or other entity which so competes with the Business. For purposes
              of this Agreement, "Business" shall mean any television
              broadcasting, television cable or television network business that
              specifically targets as its audience the 49+ age group.

       B.     Restriction on Passive Investments: Any other provision of this
              Agreement to the contrary notwithstanding, Employee shall not make
              a Passive Investment (as defined below) which results in Employee
              beneficially owning, within the meaning of Section 13(d) of the
              Securities Exchange Act of 1934, as amended, a greater than one
              percent (1%) interest in any class of securities of any issuer
              which has any class of securities listed on a national securities
              exchange or quoted on any automated quotation system of the
              National Association of Securities Dealers, Inc. (a "Public
              Company") which engages in the Business, or maintain any equity
              ownership in, or, act as a lender to, any other entity (which
              shall include, without limitation, corporations, partnerships,
              sole proprietorships, individuals and limited liability companies)
              which engages in the Business without the prior written approval
              of the Board. Nothing in this Section 8B shall be construed as
              prohibiting Employee from making any Passive Investment in any
              Public Company or other entity which does not engage in the
              Business; provided, however, nothing contained in this Section 8B
              shall be construed to permit Employee to undertake any investment
              which would result in a violation of the provisions of

                                        7

<PAGE>   8

              Section 2B of this Agreement. For purposes of this Agreement, the
              phrase "engage(s) in the Business" shall refer to the activities
              of any Public Company or other entity and of any subsidiary,
              affiliate or joint venturer thereof. For purposes of this
              Agreement, a "Passive Investment" shall mean an investment in the
              equity or debt securities of any business or entity which does not
              require Employee to render any services in the operations or
              affairs of such business or entity and which does not materially
              adversely affect or interfere with the performance of Employee's
              duties and obligations to Employer or any of its subsidiaries or
              affiliates.

       C.     No Interference: During the Restricted Period Employee shall not,
              whether for his own benefit or for the benefit of any other
              individual, partnership, firm, corporation or other business
              organization or entity (other than Employer), solicit, endeavor to
              entice away from Employer or any of its affiliates or subsidiaries
              or otherwise interfere with the relationship of Employer or any of
              its affiliates or subsidiaries with any affiliate, customer,
              supplier, cable operator, prospective strategic partner and/or
              employee of Employer or any of its affiliates or subsidiaries or
              any person employed by Employer or any of its affiliates or
              subsidiaries.

       D.     Confidential Information: (1) Employee recognizes that his
              services hereunder are special, unique and extraordinary and that,
              by reason of his employment hereunder, he may acquire confidential
              or proprietary information and trade secrets concerning the
              operations of Employer. Such information includes, but is not
              limited to, information in documentary, electronic, oral or any
              other form concerning financial condition, programming, business
              structure, plans, operations or strategies; original programming
              ideas; business concepts; customer information; research plans or
              results; litigation or administrative proceedings; information
              regarding employees, agents, shareholders or affiliates; and lists
              of cable operators and/or advertisers. Employee agrees that he
              will not, except with the prior written consent of the Board, or
              as may be required by law, directly or indirectly, disclose during
              the Term, or any time thereafter any proprietary, secret or
              confidential information that he has learned by reason of his
              association with Employer or use any such information for any
              purpose other than for the benefit of Employer.

       (2)    Employee acknowledges that he may become privy to confidential,
              sensitive or valuable trade information about Employer's
              directors, officers, agents, employees, affiliates and
              shareholders and agrees that all such information shall be deemed
              confidential. Employee agrees that he shall not at any time during
              or following the Term or thereafter directly or indirectly divulge
              or disclose for any purpose, such confidential information, omit
              to do any act which shall damage Employer, its shareholders or
              affiliates or make derogatory statements about Employer, or its
              shareholders or affiliates. In the event that Employee is
              terminated, resigns, plans to resign, or is considering resigning,
              Employee shall not make statements about his departure or possible
              departure from the Employer without the Board's prior written
              approval.

       E.     Work Product: The Employee agrees that he shall have no
              proprietary interest in the work product creative material,
              processes, ideas and concepts developed by him during the course
              of his employment with Employer and expressly assigns all rights
              to copyrights, trademarks,

                                        8

<PAGE>   9

              contractual advantages and/or opportunities, patents, trade
              secrets, or other proprietary interests or intellectual property
              of any kind or nature to Employer except for those works described
              on Exhibit A hereto. Employee agrees that, except with respect to
              those works described on Exhibit A hereto, all programming ideas,
              sales opportunities, and sales and marketing developments made and
              created by Employee during his employment with Employer pursuant
              to this Agreement or otherwise, are and shall be the sole and
              complete property of Employer, that any and all such right, title
              and interest including copyrights, trademarks and patents and
              other proprietary interests therein or intellectual property of
              any kind or nature shall belong to Employer, and that the other
              provisions of this Agreement shall fully apply to all such
              developments and works.

       F.     Injunctive Relief; Survival of Agreement: Employer shall be
              entitled, in addition to any other rights or remedies it may have,
              to seek an injunction enjoining or restraining Employee from any
              violation or threatened violation of this Section 8 which shall
              survive the termination of this Agreement.

9.     TAX WITHHOLDING
       Payments to Employee of all compensation contemplated under this
       Agreement shall be subject to all applicable legal requirements with
       respect to the withholding of taxes.

10.    WAIVER
       This Agreement may not be modified, amended or waived in any manner
       except by an instrument in writing signed by the parties hereto. The
       waiver by either party of compliance with any provision of this Agreement
       by the other party shall not operate or be construed as a waiver of any
       provision of this Agreement, or of any subsequent breach by such party of
       a provision of this Agreement.

11.    GOVERNING LAW
       This Agreement shall at all times and in all respects be construed,
       interpreted and governed by the laws of the District of Columbia.

12.    SEVERABILITY
       The provisions of this Agreement (including, but not limited to, the
       provisions of Section 8 hereof) shall be deemed severable, and the
       invalidity or unenforceability of any one or more of the provisions
       hereof shall not affect the validity or enforceability of the other
       provisions hereof. Employee agrees that the breach or alleged breach by
       Employer of (i) any covenant contained in another agreement between
       Employer and Employee or (ii) any obligation owed to Employee by
       Employer, shall not affect the validity and enforceability of the
       covenants and agreements of Employee set forth in Section 8.

13.    ARBITRATION
       Any controversy or claim arising out of or relating to this Agreement or
       the breach of this Agreement which cannot be resolved by Employee and
       Employer within thirty (30) days after one party delivers to the other
       party written notice of such controversy or claim shall be submitted to

                                        9

<PAGE>   10

       arbitration in accordance with the rules and procedures of the American
       Arbitration Association then in effect in the District of Columbia. A
       single arbitrator shall conduct such arbitration. The determination of
       the arbitrator shall be conclusive and binding on Employer and Employee.
       Judgment may be entered on the arbitrator's award in any court having
       jurisdiction. The parties agree to keep the fact of the arbitration and
       all details relating thereto confidential, except as otherwise required
       by law or as necessary to enforce or defend against the enforcement of
       any award of the arbitrator.

14.    NOTICES
       Any notice required to be given hereunder shall be sufficient if in
       writing, and sent by courier service (with proof of service), facsimile
       transmission, hand delivery or certified or registered mail (return
       receipt requested and first-class postage prepaid), to his residence in
       the case of Employee (with a copy to Jordan Ringel, Esq., PAVIA HARCOURT,
       600 Madison Avenue, New York, New York 10022), and to its principal
       office in the case of Employer.

15.    ENTIRE AGREEMENT
       This Agreement contains the entire agreement and understanding by and
       between Employer and Employee with respect to the matters set forth
       herein referred to, and no representations, promises, agreements or
       understandings, written or oral, not contained herein or therein shall be
       of any force or effect.

       IN WITNESS WHEREOF, Employer and Employee have duly executed this
Agreement as of the day and year first above written.

                             THE NOSTALGIA NETWORK, INC.,
                             A Delaware Corporation

                             By: /s/ DONG MOON JOO
                                ---------------------------------
                                        Dong Moon Joo

                             EMPLOYEE

                                 /s/ SQUIRE RUSHNELL
                                ---------------------------------
                                       Squire Rushnell

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]