Document:

Memorandum Of Understanding

This Memorandum of Understanding  ("MOU"),  effective as of the last date signed
below  (the  "Effective  Date"),  is  entered  into by and  among  MicroStrategy
Incorporated,  a Delaware  corporation having its principal place of business at
8000  Towers  Crescent   Drive,   Vienna,   VA  22182   ("MSTR"),   Strategy.com
Incorporated,  a Delaware  corporation having its principal place of business at
1861  International  Drive,  Vienna  VA 22182  ("SDC"),  MicroStrategy  Services
Corporation,  a Delaware  corporation  having its principal place of business at
8000 Towers Crescent Drive,  Vienna,  VA 22182 ("MSTR Services") (a wholly owned
subsidiary of MicroStrategy  Incorporated),  MicroStrategy International Limited
(a wholly owned subsidiary of MicroStrategy Incorporated), a Bermuda corporation
having  its  principal  place  of  business  at the  Corner  House,  Church  and
Parliament Streets, Hamilton, HM12 Bermuda ("MSTR International"), MicroStrategy
International   II  Limited  (a  wholly  owned   subsidiary   of   MicroStrategy
Incorporated),  a Bermuda  corporation having its principal place of business at
the Corner House, Church and Parliament Streets,  Hamilton,  HM12 Bermuda ("MSTR
International  II"),  and  Strategy.com  International  Limited (a wholly  owned
subsidiary  of  Strategy.com  Incorporated),  a Bermuda  corporation  having its
principal place of business at the Corner House,  Church and Parliament Streets,
Hamilton,  HM12 Bermuda ("SDC  International").  Each party may  hereinafter  be
individually  referred  to as a  "Party"  or  collectively  referred  to as  the
"Parties."

                                   RECITALS

     A. MSTR has  developed  the suite of  software  known as the  MicroStrategy
platform.

     B. The  Parties  desire to enter into  certain  agreements  with  regard to
intellectual  property,  services,  and other  matters in the Unites  States and
Internationally.

                                UNDERSTANDING

Effect of MOU

This  binding  MOU  contains a  statement  of the  preliminary  understandings
between the  Parties.  The Parties  anticipate  executing  certain  definitive
agreements prior to closing.  The Parties intend to use reasonable  efforts to
negotiate and execute the agreements  described below and their  international
counterparts,  consistent  with the intentions and coverage of this MOU within
thirty (30) days after closing.

Summary of Agreements

      1.    U.S.  Administrative  Services  Agreement.  MSTR will  execute  an
agreement  for the  provision of the  administrative  services  such as legal,
recruiting,  tax,  accounting,  and other  administrative types of services to
SDC on a cost plus 5% basis, which SDC, may, at its option, use.

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      2.    U.S.  Professional / Consulting Services Agreement.  MSTR Services
will enter into a Master  Consulting  Services  Agreement with SDC which shall
permit  attachments  of  Statements  of  Work  by MSTR  Services  for  various
projects  to be  provided.  The terms will  designate  a most  favored  client
status for SDC.

      3.    U.S. Sales Agent Agreement.  MSTR Services will enter into a Sales
Agent  Agreement  with  SDC so  that  MicroStrategy  can  market  Strategy.com
affiliations  and premium  programming  relationships  on behalf of SDC.  This
will be done on a commission  basis.  This  agreement  will provide that for a
period of three  years,  MicroStrategy  will not itself  market a third party,
affiliate network information service that competes with Strategy.com.

      4.    Employee  Transfer.   MicroStrategy  agrees  to  transfer  certain
employees who have worked in the Strategy.com business unit to Strategy.com.

      5.    Limited Exclusivity.  MicroStrategy  warrants that for a period of
three   years  it  will  not  both  grant  a  software   license  and  provide
MicroStrategy  services pursuant to which MicroStrategy  builds an application
for a customer that would allow that  non-MicroStrategy  controlled  entity to
compete  directly with  Strategy.com  as a provider of syndicated  information
services to a network of  affiliates  across a broad  range of  content.  This
provision  will be included in both the U.S.  Software  License  Agreement and
the   International   Software  License  Agreement  and  will  be  part  of  a
Pre-Closing  Agreement.  In addition,  MicroStrategy  will not itself create a
syndicated  information  service that is  distributed  to consumers  through a
network of affiliates and directly competes with Strategy.com.

      6.    Subcontractor/Hosting  Agreement.  Strategy.com  and  its  various
subsidiaries  will enter into a Master Hosting and Services  Agreement whereby
MSTR  and its  various  subsidiaries  will be able  to  purchase  hosting  and
professional  services  from SDC.  The  agreement  will contain a framework to
which  purchase  orders  and/or work  orders can be added  related to hosting.
These services will be offered by SDC to MSTR at a most favored client rate.

      7.    Outsourcing/ASP  Agreement.  MSTR and its applicable  subsidiaries
will enter into a Master  Outsourcing/ASP  Agreement with Strategy.com and its
various  subsidiaries.  This  agreement  will provide a framework so that MSTR
will be able to provide any type of  outsourcing  or ASP  services to SDC. One
example is that this  agreement  would cover  Voice  Bureau.  The  Outsourcing
services will be at a cost plus basis.

      8.    Joint  Marketing  Agreement.  The parties  will enter into a joint
marketing  agreement  whereby  they  will  coordinate  marketing   activities.
Pursuant  to this  agreement,  MicroStrategy  and  Strategy.com  will agree to
engage  in  joint  efforts  intended  to  provide,  for  example,  information
regarding  the  Strategy.com   offering  to  the  MicroStrategy   field  sales
organization.

      9.    Expenses.  Each Party  shall bear all  expenses  that it may incur
in connection with its obligations and efforts under this MOU.

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      10.   Publicity.  Any publicity by any Party  regarding  this MOU or any
Definitive Agreement, must have the prior approval of the other Party.

      11.   Term of MOU. This MOU shall  terminate on October 30, 2000 or when
the definitive  agreements have been executed by the parties (the "Termination
Date"), whichever is later.

      12.   Governing  Law.  This MOU shall be  governed by and  construed  in
accordance with the laws of the Commonwealth of Virginia.

      13.   Assignability.  This MOU  shall be  binding  upon and inure to the
benefit of each Party,  and shall not be  assignable or  transferable  without
the prior written consent of all other Parties.

      14.   Entire  Understanding.  This MOU constitutes the entire  agreement
between  the  Parties.  No  modification  or  amendment  of this MOU  shall be
effective unless mutually agreed in writing and signed by the Parties.

      15.   Severability;  Survivability.  The invalidity or illegality of one
or more  provisions  of this MOU shall not  affect the  enforceability  of the
remaining  provisions.  The Parties'  rights and  obligations  hereunder  that
would continue beyond the termination,  cancellation or expiration of this MOU
shall survive such termination, cancellation or expiration.

      16.   Binding.  It is  understood  by the parties that this is a binding
MOU and that the parties intend to enter into Agreements  incorporating  terms
and conditions which are substantially  based on this MOU and such other terms
and conditions as may be mutually agreed upon.

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MicroStrategy Incorporated                Strategy.com Incorporated

Signed: /s/Eric F. Brown                  Signed: /s/Eric F. Brown
Name:   Eric F. Brown                     Name:   Eric F. Brown
Title:  CFO                               Title:  CFO
Dated:  10/17/2000                        Dated:  10/17/2000

MicroStrategy International Limited       Strategy.com International Limited

Signed: /s/Eric F. Brown                  Signed: /s/Eric F. Brown
Name:   Eric F. Brown                     Name:   Eric F. Brown
Title:  CFO/Director                      Title:  CFO/Director
Dated:  10/17/2000                        Dated:  10/17/2000

MicroStrategy Services Corporation        MicroStrategy International II Limited

Signed: /s/Mark S. Lynch                  Signed: /s/Eric F. Brown
Name:   Mark S. Lynch                     Name:   Eric F. Brown
Title:  Treasurer                         Title:  CFO/Director
Dated:  10/17/2000                        Dated:  10/17/2000

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<PAGE>United States Intellectual Property Assignment
                          and License Back Agreement

      This United States  Intellectual  Property  Assignment  and License Back
Agreement   (the   "Agreement")   is   made  by  and   between   MicroStrategy
Incorporated,  a Delaware corporation ("MSTR"), and Strategy.com Incorporated,
a Delaware  corporation  ("SDC").  The effective date of this Agreement  shall
be the date last signed below (the "Effective Date").

                                   Recitals

     WHEREAS,  MicroStrategy Incorporated and certain of its subsidiaries desire
to realign their worldwide corporate structure in accordance with their separate
lines of business, the "Strategy.com Business" and the "MicroStrategy Business";
and

     WHEREAS,  the entities now enter into various  agreements  and make certain
mutual  promises as described in the "Agreement and Plan of  Reorganization"  by
and  among  MicroStrategy  Incorporated,  MicroStrategy  International  Limited,
MicroStrategy   International  II  Limited,   Strategy.com   Incorporated,   and
Strategy.com  International  Limited dated October 17, 2000 to effectuate  this
realignment and reorganization;

     WHEREAS,   MSTR  has  developed   the  suite  of  software   known  as  the
MicroStrategy   platform  and  other   technology   related  to  a  personalized
information network.

     WHEREAS,  MSTR has  agreed to assign  certain  United  States  intellectual
property rights to SDC, subject to a license from SDC to continue its activities
involving such intellectual property.

     NOW,  THEREFORE,  in  consideration of the premises set forth above and the
covenants set forth below,  and other  valuable  consideration,  the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

                                  Agreement

The parties agree to the following:

                                  Article 1.

1.    Definitions.

      As used herein, the following terms have the following meanings:

      1.1   "MSTR  Products"  means the  products of MSTR in  existence  or in
development by MSTR as of the Effective Date, and future MSTR products.

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      1.2   "Subsidiary"  means a corporation  or other legal entity:  (i) the
majority of whose shares or other securities  entitled to vote for election of
directors  (or other  managing  authority)  is now or hereafter  controlled by
such  company  either  directly  or  indirectly;  or (ii)  which does not have
outstanding  publicly  traded shares or  securities  but the majority of whose
ownership interest  representing the right to manage such corporation or other
legal entity is now or hereafter  owned and  controlled by such company either
directly or  indirectly;  but any such  corporation  or the other legal entity
shall  be  deemed  to be a  Subsidiary  of such  company  only as long as such
control or ownership and control exists.

      1.3   "Trade  Secret"  means  that  information  identified  as  of  the
Effective  Date  in  Schedule  A,  along  with  any  other  formula,  pattern,
compilation,  program,  device,  method,  technique,  or  process,  that:  (i)
derives  independent  economic  value,  actual  or  potential,  from not being
generally  known to, and not being readily  ascertainable  by proper means by,
other persons who can obtain  economic  value from its  disclosure or use; and
(ii) is the subject of efforts that are reasonable under the  circumstances to
maintain its secrecy;  and including any other Trade Secrets that may be added
to this  agreement by mutual  agreement of the parties in writing using a form
substantially as shown in Schedule A.

      1.4   "Copyrighted  Works" means the works  subject to copyright  rights
associated  with the  expression  of  certain  ideas  embodied  in such  works
identified  as of the  Effective  Date in Schedule A; and  including any other
copyrights  and/or  copyrighted  works that may be added to this  Agreement by
mutual  agreement  of the  parties in writing  using a form  substantially  as
shown in Schedule A.

                                  Article 2.

                    Trade Secret Assignments and Licenses

      2.1   Trade Secret Assignment.

      Subject to the license in Section 2.2, MSTR hereby  assigns,  transfers,
and sets over to SDC, its lawful successors and assigns,  MSTR's entire right,
title, and interest in and to the Trade Secrets in the United States.

      2.2   Trade Secret License.

            (a)   License  Grant.  SDC agrees  that in  consideration  for the
assignment  in  Section  2.1,   MSTR  shall  retain  a  personal,   perpetual,
nonexclusive and  nontransferable,  royalty-free  license to the Trade Secrets
identified in Schedule A for the scope set forth below in the United States.

            (b)   Scope.  The  license  granted  from SDC to MSTR  herein is a
license  to (i) make,  have made,  use,  lease and sell MSTR  Products  to the
extent that any MSTR Products  incorporate any Trade Secrets;  (ii) make, have
made,  use  and  import  other   instrumentalities,   insofar  as  such  other
instrumentalities  are involved in or incidental to the development or testing

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<PAGE>

of MSTR  Products  that  incorporate  any Trade Secrets which are or have been
made, used,  leased,  owned, sold or imported by MSTR; and (iii) convey to any
customer of MSTR with  respect to any MSTR  Product  which is sold or licensed
by MSTR to such  customer,  rights to use and resell such MSTR Product as sold
or licensed by MSTR  (whether or not as part of a larger  combination)  in the
United States.

            (c)   Subsidiaries.  The  grant of each  license  from SDC to MSTR
hereunder  includes the right of MSTR to grant sublicenses within the scope of
such  license  to  MSTR'S   Subsidiaries  for  so  long  as  they  remain  its
Subsidiaries.  Any such sublicense may be made effective retroactively.

            (d)   All  rights  in  and  to  all   changes,   developments   or
improvements  by  MSTR  in the  Trade  Secrets  licensed  above  shall  be the
property  of  SDC  to  the  extent  that  SDC   incorporates   such   changes,
developments or improvements  into SDC's  commercial  products and/or services
and those changes,  developments or  improvements  are  incorporated  into the
Trade Secrets  licensed  above.  If SDC does not so incorporate  such changes,
developments   and/or  improvements  into  SDC's  commercial  products  and/or
services, then ownership in and to such changes,  developments or improvements
shall  vest  in  MSTR,  provided,  however,  that  as  to  any  such  changes,
developments  or  improvements  by  the  MSTR,  MSTR  hereby  grants  to SDC a
perpetual,    royalty-free,    nonexclusive,    nontransferable   license   to
manufacture,  have  manufactured,  distribute,  use, lease,  sell and offer to
sell  products  and/or  services  utilizing  such  changes,   developments  or
improvements  to the Trade Secrets in the United  States,  provided,  however,
that SDC shall not make any use of such changes,  developments or improvements
in a manner which harms the competitive interests of MSTR.

                                  Article 3.

                      Copyright Assignment and Licenses

      3.1   Copyright Assignment.

      Subject to the license in Section 3.2, MSTR hereby  assigns,  transfers,
and sets over to SDC, its lawful successors and assigns,  MSTR's entire right,
title,  and  interest in and to the  Copyrighted  Works in the United  States.
The  Copyrighted  Works will be the sole property of SDC and SDC will have the
sole right to determine the treatment of any Copyrighted  Work,  including the
right to keep it as a trade secret, to file  registrations for copyright on it
in its own name, or to follow any other  procedure that SDC deems  appropriate
in the United States.

      3.2   Copyright License.

            (a)   License  Grant.  SDC agrees  that in  consideration  for the
assignment  in Section  3.1,  MSTR shall retain a personal,  nonexclusive  and
nontransferable,  royalty-free  license to the Copyrighted  Work identified in
Schedule A in the United States.

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<PAGE>

            (b)   Duration.    All   licenses   granted   herein   under   any
Copyrighted  Work  shall  continue  for  the  entire  unexpired  term  of such
Copyrighted  Work or for as much of such term as SDC has the right to grant in
the United States.

            (c)   Scope.  The  license  granted  from SDC to MSTR  herein is a
license to (i) develop and test the Copyrighted  Works for the sole purpose of
incorporating the Copyrighted Works, or portions thereof,  in any MSTR Product
and (ii) to make copies of, distribute  copies of, publicly perform,  publicly
display,  make  derivatives  of, use,  lease,  license and  import/export  the
Copyrighted  Works to the extent  incorporated  in any such MSTR  Product  and
collateral;  and (iii) convey to any customer of MSTR with respect to any MSTR
Product  that  incorporates  any  Copyrighted  Work  a  license  to  use  such
Copyrighted  Work to the extent  incorporated  into any MSTR  Product  and the
right  to  resell  such  MSTR  Product  (whether  or not as part  of a  larger
combination) in the United States.

            (d)   All  rights  in  and  to  all   changes,   developments   or
improvements  by MSTR in the  Copyrighted  Works  licensed  above shall be the
property  of  SDC  to  the  extent  that  SDC   incorporates   such   changes,
developments or improvements  into SDC's  commercial  products and/or services
and those changes,  developments or  improvements  are  incorporated  into the
Copyrighted  Works  licensed  above.  If  SDC  does  not so  incorporate  such
changes,  developments  and/or  improvements  into SDC's  commercial  products
and/or  services,  then  ownership  of all  rights  in and  to  such  changes,
developments or improvements  shall vest in MSTR,  including all  intellectual
property  rights in and to such  changes,  developments  and/or  improvements,
provided,  however, that as to any such changes,  developments or improvements
by MSTR,  MSTR hereby grants to SDC a perpetual,  royalty-free,  nonexclusive,
nontransferable license to manufacture,  have manufactured,  distribute,  use,
lease,  sell  and  offer  to sell  products  and/or  services  utilizing  such
changes,  developments or improvements to the Copyrighted  Works in the United
States,  provided,  however,  that SDC shall not make any use of such changes,
developments   or  improvements  in  a  manner  which  harms  the  competitive
interests of MSTR.

                                  Article 4.

                                 Termination

      4.1   Termination  by MSTR.  MSTR may  terminate  any license under this
Agreement at any time.

      4.2   Termination  by  SDC.  SDC may  terminate  this  Agreement  or any
license upon  written  notice if MSTR  breaches  this  Agreement  and fails to
correct  the  breach  within  thirty  (30)  days   following   written  notice
specifying the breach.

                                  Article 5.

                           Miscellaneous Provisions

      5.1   IP Rights  Ownership.  MSTR warrants that it owns,  free and clear
of  all  liens  or  encumbrances,  or has  valid  licenses  in  the IP  Rights
contained  in  Schedule A and that it has full legal right to grant to SDC the
licenses contained herein.

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<PAGE>

      5.2   Indemnification  of SDC.  MSTR  shall  defend  and  indemnify  SDC
against  and hold SDC  harmless  from any and all  claims  that the IP  Rights
contained  in Schedule A infringe a United  States  patent or  copyright  of a
third party  provided that SDC : (i) promptly  notifies MSTR in writing of any
such  claim;  (ii)  allows  MSTR to have sole  control of the  defense and all
related   settlement   negotiations;   and  (iii)   provides   MSTR  with  the
information,   authority   and   assistance   necessary  to  perform  MSTR  's
obligations under this Section.

      5.3   Excluded  Claims.  Notwithstanding  Section 5.2 above,  MSTR shall
not  be  liable  to  SDC  for  any  claim  arising  from  or  based  upon  the
combination,  operation  or use of any  MicroStrategy  Platform  product  with
equipment,  data  or  programming  not  supplied  by MSTR  (including  the SDC
software and  services) or for other than an intended  purpose as set forth in
the User Documentation,  or arising from any alteration or modification of the
MicroStrategy  Platform  product,  if the claim would not have arisen  without
such alteration or modification.

      5.4   Indemnification  of MSTR.  SDC shall  defend  and  indemnify  MSTR
(including  paying all  reasonable  attorneys'  fees and costs of  litigation)
against  and hold MSTR  harmless  from any and all  claims by any other  party
resulting   from   SDC's   negligent   or   tortious   acts,   omissions    or
misrepresentations  relating  to the  marketing,  sublicensing,  distribution,
demonstration,  evaluation  or  use of the  MicroStrategy  Platform  products,
regardless  of the form of action  provided that MSTR:  (i) promptly  notifies
SDC in  writing of any such  claim;  (ii)  allows SDC to have sole  control of
the defense and all related  settlement  negotiations;  and (iii) provides SDC
with the  information,  authority and  assistance  necessary to perform SDC 's
obligations under this Section.

      5.5   Disclaimer.

      Neither  MSTR nor any of its  Subsidiaries  makes  any  representations,
extends any warranties of any kind,  assumes any responsibility or obligations
whatever,  or confers any right by implication,  estoppel or otherwise,  other
than the rights herein expressly granted.

      5.6   Nonassignability.   Neither   party  may  assign  this   Agreement
without the prior  written  consent of the other  party.  Notwithstanding  the
foregoing  to the  contrary,  either  party may  assign  any of its  rights or
obligations  hereunder  to any  one or more of its  Subsidiaries.  Each  party
acknowledges  that it shall continue to be obligated if and to the extent that
a permitted  assignee  under this paragraph  fails to perform the  obligations
that such party has assigned.  Any  attempted  assignment in violation of this
paragraph without consent shall be null and void.

      5.7   Addresses.        Any  notice  or  other  communication  hereunder
shall be  sufficiently  given to SDC when sent by certified  mail addressed to
Strategy.com  Incorporated,  Attn:  CEO, 8000 Towers  Crescent  Drive,  Vienna
Virginia   22182  or  to  MSTR  when  sent  by  certified  mail  addressed  to
MicroStrategy  Incorporated,  Attn:  General  Counsel,  8000  Towers  Crescent
Drive, Vienna Virginia 22182.

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      5.8   Integration.      This Agreement  sets forth the entire  agreement
and  understanding  between the parties as to the  subject  matter  hereof and
merges all prior  discussions  between  them.  Neither of the parties shall be
bound by any warranties,  understandings  or  representations  with respect to
such subject  matter other than as expressly  provided  herein or in a writing
signed with or subsequent to execution hereof by an authorized  representative
of the party to be bound thereby.

      5.9   Dispute Resolution.

            (a)   If a dispute arises out of or relates to this Agreement,  or
the breach,  termination or validity thereof,  the parties agree to submit the
dispute to a sole  mediator  selected  by the  parties  or, at any time at the
option  of a party,  to  mediation  by the  American  Arbitration  Association
("AAA").  If not  thus  resolved,  it shall  be  referred  to a panel of three
arbitrators  selected by the parties within thirty (30) days of the mediation,
or in the  absence  of such  selection,  to AAA  arbitration  which  shall  be
governed by the United States Arbitration Act.

            (b)   Any award made (i) shall be an award  affording  such remedy
as is deemed  equitable,  just and  within the scope of this  Agreement;  (ii)
shall be with  findings  as to issues  (including  but not  limited  to patent
validity  and/or  infringement)  or a statement of the  reasoning on which the
award  rests;  (iii)  may  in  appropriate  circumstances  include  injunctive
relief;  (iv) shall be made within four (4) months of the  appointment  of the
arbitrator; and (v) may be entered in any court.

            (c)   The requirement  for mediation and arbitration  shall not be
deemed a waiver of any  right of  termination  under  this  Agreement  and the
arbitrator  is now  empowered to act or make any award other than based solely
on the rights and obligations of the parties prior to any such termination.

            (d)   The arbitrator shall determine  issues of arbitrability  but
may not limit, expand or otherwise modify the terms of this Agreement.

            (e)   This Agreement  shall be interpreted in accordance  with the
laws  of the  Commonwealth  of  Virginia  exclusive  of its  conflict  of laws
provisions and the place of mediation and arbitration shall be Fairfax County.

            (f)   Each party shall bear its own expenses but those  related to
the  compensation  and expenses of the mediator and arbitrator  shall be borne
equally.

            (g)   A request by a party to a court for interim  measures  shall
not be deemed a waiver of the obligation to mediate and arbitrate.

            (h)   The  arbitrator  shall not have  authority to award punitive
or other damages in excess of compensatory.

            (i)   The parties, their  representatives,  other participants and
the mediator and arbitrator  shall hold the  existence,  content and result of
mediation and arbitration in confidence.

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      In Witness Whereof,  each of the parties has caused this Agreement to be
executed in duplicate originals by its duly authorized  representatives on the
respective dates entered below.

MicroStrategy Incorporated                Strategy.com Incorporated
Signed: /s/Eric F. Brown                  Signed: /s/Eric F. Brown
Name:   Eric F. Brown                     Name:   Eric F. Brown
Title:  CFO                               Title:  CFO
Dated:  10/17/2000                        Dated:  10/17/2000

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