WALT DISNEY CO/
EXHIBIT 10(B)
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<TYPE>EX-10.(B)
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<DESCRIPTION>EXHIBIT 10(B)
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<P align="right" style="font-size: 10pt"><B>Form of Agreement</B>


<P align="center" style="font-size: 10pt"><B>THE WALT DISNEY COMPANY</B>



<P align="center" style="font-size: 10pt"><U><B>Non-Qualified Stock Option Award Agreement</B></U><BR>
<B>&#091;Seven-year Form&#093;</B>


<P align="left" style="font-size: 10pt">This AWARD AGREEMENT (the &#147;Agreement&#148;) is between you, <U><B>Participant Name</B></U>, and The Walt
Disney Company (&#147;Disney&#148;), in connection with the Non-Qualified Stock Option Award (the &#147;Option&#148;)
granted to you on <U><B>Grant Date</B></U>, by the Compensation Committee of the Board of Directors of
Disney pursuant to the terms of the Amended and Restated 1995 Stock Incentive Plan and Rules
relating to Stock Options and Stock Appreciation Rights (together, the &#147;Plan&#148;), the applicable
terms and conditions of which are incorporated herein by reference and made a part of this
Agreement.


<P align="left" style="font-size: 10pt">This Option gives you the opportunity to purchase <U><B>###</B></U> shares of
Common Stock of The Walt
Disney Company at an exercise price of <U><B>$Option Price</B></U> per share. The exercise price is the
average of the highest and the lowest market prices for the Common Stock on the above grant date as
determined pursuant to the Plan.


<P align="left" style="font-size: 10pt">This Option may not be exercised before <U><B>First Vest Date.</B></U> On or after that date, subject to
your continued employment by Disney or an affiliated company (as described further below) and to
the other provisions of the Plan, you may exercise the Option with respect to the number of shares
set forth opposite the first date below. As the subsequent dates set forth below occur, you may
exercise as to the number of shares set forth opposite those dates:


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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U><B>Vest Date 1</B></U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><U>Exercise Qty 1</U> </B>Shares</TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><U>Vest Date 2</U></B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><U>Exercise Qty 2</U> </B>Shares</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><U>Vest Date 3</U></B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><U>Exercise Qty 3</U> </B>Shares</TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><U>Vest Date 4</U></B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><U>Exercise Qty 4</U> </B>Shares</TD>
</TR>


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<P align="left" style="font-size: 10pt">Provided your employment continues, the term of this Option is seven years from the grant date and,
therefore, expires on <U><B>Expiration Date</B></U>. If your employment should cease prior to the date
on which your grant expires, your right to vest and exercise under the Option will be subject to
early termination as provided in Section&nbsp;4 of the Rules relating to Stock Options under the Plan.
Except under certain circumstances specified in Section&nbsp;4, you will generally have the right of
continued vesting for three months following the date of termination of your employment, and during
that three-month period you will have the right to exercise the shares covered by the

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<P align="right" style="font-size: 10pt"><B>Form of Agreement</B><BR><BR>

<P align="left" style="font-size: 10pt">Option that
were vested on the date of termination, and any shares that vest during the three-month period will
then be exercisable for the remainder of that period. If you are employed pursuant to an
employment agreement with Disney, any provisions thereof relating to the effect of a termination of
your employment upon your rights under this Option shall supercede the provisions hereof relating
to the same subject matter, but in no event shall the restriction on sale of shares acquired upon
the exercise of the Option referred to below apply after any termination of your employment with
Disney.


<P align="left" style="font-size: 10pt">You may exercise this Option as to all or part of the number of shares covered by the Option which
are then vested by paying the aggregate exercise price and applicable withholding taxes on the
gross gain. You will be provided with additional information at the time of exercise about the
methods available for exercising your Option and paying your withholding taxes, in accordance with
the methods of exercising options permitted under Section&nbsp;2 and Section&nbsp;5 of the Rules relating to
Stock Options under the Plan. You are urged to seek advice from your tax accountant or attorney
when making decisions regarding the exercise of this Option. This Option may not be transferred or
assigned.


<P align="left" style="font-size: 10pt">Notwithstanding any other term or provision hereof, you agree by acceptance of this Option that,
except for certain shares (the &#147;Tax-Available Shares&#148;) that may be sold to pay taxes up to the
Maximum Tax Liability (as defined below) upon an exercise of a portion of, or all of, this Option,
you will hold, for not less than twelve months from the date of exercise of this Option, shares
representing no less than &#091;seventy-five percent (75%)&#093; &#091;one hundred percent (100%)&#093; of the shares
acquired by you (other than Tax-Available Shares) upon such exercise. For purposes hereof the term
&#147;Maximum Tax Liability&#148; shall mean the amount calculated by multiplying total income recognized, as
reported by Disney for Federal income tax purposes, upon an exercise of this Option, by a
percentage determined as follows:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR &#043; SR (100-FR) &#043; MR


<P align="left" style="font-size: 10pt">where:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR = the highest Federal income tax rate in effect at time of exercise of the Option;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SR = the highest state income tax rate, if any, in effect at the time of exercise of the Option in
the state where your principle Disney office is located; and


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<P align="right" style="font-size: 10pt"><B>Form of Agreement<BR><BR></B>



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MR = the Medicare tax rate in effect at time of exercise of the Option.

<P align="left" style="font-size: 10pt">The number of whole shares acquired upon any exercise of the Options that may be sold to discharge
the Maximum Tax Liability shall be determined by dividing the Maximum Tax Liability by the fair
market value (as defined in Section&nbsp;2 of the Rules relating to the Plan) of one share of Disney
common stock on the date of exercise of the Option and disregarding any fractional amount resulting
from such calculation. For the purposes hereof, your commitment to hold the percentage of shares
referred to above for not less than twelve months shall constitute and undertaking by you not to
sell, transfer, pledge, encumber, assign or otherwise dispose of, except for certain transfers to
&#147;family members&#148; and certain others permitted with the prior approval of the Committee pursuant to
Section 9(b) of the Plan, any of such shares during such period.



<P align="left" style="font-size: 10pt">Please sign this Non-Qualified Stock Option Award Agreement where indicated below. Your signature
acknowledges receipt of a copy of the Plan and evidences your agreement to be bound by all the
terms and provisions of this Agreement and the Plan.

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<TR valign="bottom">
    <TD valign="top" colspan="4"><DIV style="margin-left:0px; text-indent:-0px"><B>THE WALT DISNEY COMPANY</B>
</DIV></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top" colspan="2"><B>PARTICIPANT</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

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<TR><TD>&nbsp;</TD></TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">(Signature of Participant)</TD>
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