Document:

STRATEGY.COM INCORPORATED

                 SERIES A PREFERRED STOCK PURCHASE AGREEMENT

      This Series A Preferred Purchase Agreement dated as of October 18, 2000
is entered into by and among Strategy.com Incorporated, a Delaware
corporation (the "Company") and the individuals and entities listed on
Exhibit A hereto (the "Purchasers").

                                      Recitals

      A.    The Purchasers desire to acquire from the Company, and the
            Company desires to issue and sell to the Purchasers, in the
            manner and on the terms and conditions hereinafter set forth,
            shares of Series A Preferred Stock.

      B.    In connection with the Purchasers' purchase of the Series A
            Preferred Stock, the Company and the Purchasers desire to
            establish certain rights and obligations among themselves.

      In consideration of the mutual promises and covenants contained in this
Agreement and for other good and valuable consideration, the sufficiency and
receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.    Authorization and Sale of Shares.

     1.1  Authorization.  The Company  has,  or before the  Initial  Closing (as
defined in Section 2) will have, duly authorized the sale and issuance, pursuant
to the terms of this Agreement,  of 16,536,049 shares of its Series A  Preferred
Stock, $0.001 par value per share (the "Series A Preferred"), having the rights,
restrictions,  privileges and  preferences set forth in the Amended and Restated
Certificate  of  Incorporation  attached  hereto  as  Exhibit B  (the  "Restated
Charter"). The Company has, or before the Initial Closing (as defined in Section
2) will have, adopted and filed the Restated Charter with the Secretary of State
of the State of Delaware.

     1.2 Sale of Shares.  Subject to the terms and conditions of this Agreement,
at the  Initial  Closing  (as  defined in Section 2) and the Second  Closing (as
defined  in  Section  2),  the  Company  shall  sell  and  issue  to each of the
Purchasers,  and each of the Purchasers shall purchase,  the number of shares of
Series A Preferred set forth opposite such Purchaser's name on Exhibit A for the
purchase price of $3.19 per share (the "Purchase Price"). The shares of Series A
Preferred  sold  under this  Agreement  are  referred  to as the  "Shares."  The
Company's agreement

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with each of the Purchasers is a separate  agreement,  and the sale of Shares to
each of the Purchasers is a separate sale.

     1.3 Use of Proceeds. The Company will use the proceeds from the sale of the
Shares for product development and other general corporate purposes.

2. The Closings.  The initial  closing (the  "Initial  Closing") of the sale and
purchase of the Shares under this  Agreement  shall take place at the offices of
Hale and Dorr LLP, 11951 Freedom Drive,  Reston,  Virginia 20190 at 9:00 a.m. on
October  18,  2000,  or at such  other  time,  date and  place  as are  mutually
agreeable to the Company and the Purchasers, but in no event later than November
30, 2000. The second closing of the sale and purchase of the Shares (the "Second
Closing")  shall take place at the same  location no later than one business day
following  the  satisfaction  of the  condition set forth in Section 6A. At each
closing,  the Company shall deliver to each of the Purchasers a certificate  for
the  number of Shares  being  purchased  at such  closing by such  Purchaser  in
accordance with Exhibit A hereto,  which certificates shall be registered in the
name of such Purchaser, against payment to the Company of the Purchase Price, by
wire transfer, check, cancellation of indebtedness or other method acceptable to
the Company.  The date of the Initial Closing is hereinafter  referred to as the
"Initial Closing Date."

3.  Representations  and  Warranties of the Company.  Except as disclosed by the
Company in Exhibit C hereto,  the Company hereby represents and warrants to each
of the  Purchasers  that the  statements  contained  in this Section 3 are true,
complete and correct.  Exhibit C shall be arranged in subsections  corresponding
to the numbered subsections  contained in this Section 3, and the disclosures in
any subsection of Exhibit C shall qualify only the  corresponding  subsection of
this Section 3, unless it is clearly  apparent  from a reading of Exhibit C that
such  disclosure  also  applies  to such  other  subsection  of this  Section 3.
References to the "Company" in this Section 3 are deemed to include the business
of the  Company  as a wholly  owned  subsidiary  of  MicroStrategy  Incorporated
("MSTR")  as well as the  business  of the  Company as a business  unit of MSTR,
except where the context otherwise requires.

     3.1 Organization and Standing. The Company is a corporation duly organized,
validly  existing and in good  standing  under the laws of the State of Delaware
and has full corporate power and authority to own or lease its properties and to
conduct its business as presently  conducted  and to enter into and perform this
Agreement and all other agreements  required to be executed by the Company at or
prior  to  the  Initial   Closing   pursuant  to  Section  5.3  (the  "Ancillary
Agreements")  and to carry out the  transactions  contemplated by this Agreement
and the Ancillary Agreements.  The Company is duly qualified to do business as a
foreign  corporation and is in good standing in the Commonwealth of Virginia and
in every  other  jurisdiction  in which the  failure so to qualify  would have a
material adverse effect on the

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business,  prospects,  assets, liabilities or condition (financial or otherwise)
of the Company (a "Company Material Adverse Effect").  Exhibit C sets forth each
state in which the Company maintains an office,  has employees or owns or leases
property.  The Company  has duly filed its  Restated  Charter and such  Restated
Charter is in the proper form required by Delaware law.

     3.2   Capitalization.   The   authorized   capital  stock  of  the  Company
(immediately prior to the Initial Closing) consists of (i) 190,431,973 shares of
Class A Common Stock,  $0.001 par value per share (the "Class A Common  Stock"),
of which no shares are issued and  outstanding  and 17,200,000  shares have been
reserved  for  issuance  pursuant to the 2000 Stock  Option Plan of the Company,
(ii) 84,000,000 shares of Class B Common Stock,  $0.001 par value per share (the
"Class B Common Stock," and collectively with the Class A Common Stock,  "Common
Stock"), all of which are issued and outstanding, and (iii) 47,884,011 shares of
Series A Preferred Stock,  $0.001 par value per share,  none of which shares are
issued or  outstanding  immediately  prior to the  Initial  Closing.  All of the
issued and  outstanding  shares of Common  Stock have been duly  authorized  and
validly  issued and are fully  paid and  nonassessable,  and all of the  rights,
privileges  and  preferences  of such Common Stock are as stated in the Restated
Charter  or as  otherwise  set forth in the  Delaware  General  Corporation  Law
statute. Except as provided in Exhibit C to this Agreement, (i) no subscription,
warrant,  option,  convertible security or other right (contingent or otherwise)
to purchase or acquire any shares of capital  stock of the Company is authorized
or outstanding,  (ii) the Company has no obligation (contingent or otherwise) to
issue any  subscription,  warrant,  option,  convertible  security or other such
right or to issue or  distribute  to holders of any shares of its capital  stock
any evidences of indebtedness or assets of the Company, (iii) the Company has no
obligation  (contingent or otherwise) to purchase,  redeem or otherwise  acquire
any shares of its capital  stock or any interest  therein or to pay any dividend
or make any  other  distribution  in  respect  thereof,  and (iv)  there  are no
outstanding or authorized  stock  appreciation,  phantom stock or similar rights
with respect to the Company. All of the issued and outstanding shares of capital
stock of the  Company  have been  offered,  issued  and sold by the  Company  in
compliance with applicable federal and state securities laws.

     3.3 Subsidiaries, Etc. Except as set forth on Exhibit C, the Company has no
subsidiaries and does not own or control, directly or indirectly,  any shares of
capital stock of any other corporation or any interest in any partnership, joint
venture or other non-corporate business enterprise.

     3.4  Securityholder  Lists and Agreements.  Attached as Exhibit D is a true
and complete list of the  securityholders of the Company,  showing the number of
shares  of  Common  Stock  or  other  securities  of the  Company  held  by each
securityholder  immediately  prior to the  Initial  Closing  and, in the case of
options, warrants and other convertible securities, the exercise

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price thereof and the number and type of securities issuable thereunder.  Except
as provided in Exhibit C to this Agreement, there are no agreements,  written or
oral,  between the Company and any holder of its securities,  or, to the best of
the Company's  knowledge,  among any holders of its securities,  relating to the
acquisition (including without limitation rights of first refusal, anti-dilution
or pre-emptive rights), transferability,  redemption, disposition,  registration
(including  piggyback  rights) under the Securities Act of 1933, as amended (the
"Securities Act"), or voting of the capital stock of the Company.

     3.5 Issuance of Shares.  The  issuance,  sale and delivery of the Shares in
accordance with this  Agreement,  and the issuance and delivery of the shares of
Class A Common Stock issuable upon conversion of the Shares,  have been, or will
be on or  prior  to the  Initial  Closing,  duly  authorized  by  all  necessary
corporate action on the part of the Company,  and all such shares have been duly
reserved for issuance.  The Shares when so issued,  sold and  delivered  against
payment  therefor in accordance with the provisions of this  Agreement,  and the
shares of Class A Common Stock  issuable  upon  conversion  of the Shares,  when
issued upon such  conversion,  will be duly and validly  issued,  fully paid and
nonassessable and free of any Security Interest or preemptive right of any third
party.

     3.6 Authority  for  Agreement;  No Conflict.  The  execution,  delivery and
performance by the Company of this Agreement and the Ancillary  Agreements,  and
the  consummation  by the Company of the  transactions  contemplated  hereby and
thereby,  have been duly  authorized by all  necessary  corporate  action.  This
Agreement has been,  and the Ancillary  Agreements  when executed at the Initial
Closing will be, duly executed and delivered by the Company and constitute valid
and binding  obligations  of the Company  enforceable  in accordance  with their
respective   terms,   subject  as  to  enforcement  of  remedies  to  applicable
bankruptcy,  insolvency,  reorganization,  moratorium or similar laws  affecting
generally  the  enforcement  of  creditors'  rights  and  subject  to a  court's
discretionary  authority  with  respect  to the  granting  of a decree  ordering
specific  performance  or  other  equitable  remedies.   The  execution  of  and
performance of the transactions contemplated by this Agreement and the Ancillary
Agreements and compliance with their  respective  provisions by the Company will
not,  and the transfer of the assets of the business now operated by the Company
from MSTR to the Company did not, (a) conflict  with or violate any provision of
the Certificate of Incorporation  or By-laws of the Company,  (b) require on the
part of the Company any filing with,  or any permit,  authorization,  consent or
approval  of,  any  court,  arbitrational  tribunal,  administrative  agency  or
commission or other governmental or regulatory  authority or agency (each of the
foregoing is hereafter  referred to as a  "Governmental  Entity"),  (c) conflict
with,  result in a breach of, constitute (with or without due notice or lapse of
time or both) a default  under,  result in the  acceleration  of,  create in any
party the right to  accelerate,  terminate,  modify or cancel,  or  require  any
notice,  consent  or waiver  under,  any  contract,  lease,  sublease,  license,
sublicense, franchise,

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permit,  indenture,  agreement  or mortgage for borrowed  money,  instrument  of
indebtedness, Security Interest (as defined below) or other arrangement to which
the  Company is a party or by which the  Company is bound or to which its assets
are subject,  other than any of the  foregoing  events listed in this clause (c)
which do not and will  not,  individually  or in the  aggregate,  have a Company
Material Adverse Effect,  (d) result in the imposition of any Security  Interest
upon any assets of the  Company or (e)  violate  any  order,  writ,  injunction,
decree,  statute,  rule or  regulation  applicable  to the Company or any of its
properties or assets. For purposes of this Agreement,  "Security Interest" means
any mortgage,  pledge,  security  interest,  encumbrance,  charge, or other lien
(whether arising by contract or by operation of law).

     3.7 Governmental Consents. No consent, approval, order or authorization of,
or  registration,  qualification,  designation,  declaration or filing with, any
Governmental  Entity is required on the part of the Company in  connection  with
the execution and delivery of this  Agreement or the Ancillary  Agreements,  the
offer,  issuance,  sale and delivery of the Shares, the issuance and delivery of
the shares of Class A Common Stock issuable upon conversion of the Shares or the
other transactions to be consummated at the Initial Closing,  as contemplated by
this Agreement and the Ancillary  Agreements,  except such filings as shall have
been made prior to and shall be effective  on and as of the Initial  Closing and
such  filings  required to be made after the Initial  Closing  under  applicable
federal and state  securities laws all of which filings are listed on Exhibit C.
Based on the representations made by each of the Purchasers in Section 4 of this
Agreement, the offer and sale of the Shares to each of the Purchasers will be in
compliance with applicable federal and state securities laws.

     3.8 Litigation.  Except as set forth on Exhibit C, there is no action, suit
or proceeding,  or governmental  inquiry or investigation,  pending,  or, to the
best of the Company's knowledge,  any basis therefor or threat thereof,  against
the Company,  including,  without limitation,  such actions, suits, proceedings,
inquiries or investigations  that question the validity of this Agreement or any
Ancillary  Agreement or the right of the Company to enter into it, or that might
result,  either individually or in the aggregate,  in a Company Material Adverse
Effect,  nor is there any litigation  pending,  or, to the best of the Company's
knowledge,  any basis therefor or threat thereof,  against the Company by reason
of the proposed  activities of the Company or  negotiations  by the Company with
possible investors in the Company. The Company is not subject to any outstanding
judgement, order or decree.

     3.9  Financial  Statements.  The  Company  has  furnished  to  each  of the
Purchasers a copy of the pro forma unaudited balance sheet (the "Balance Sheet")
of the Company at June 30, 2000 (the  "Balance  Sheet Date") and the related pro
forma  unaudited  statements  of  operations  and cash flows for the period then
ended (collectively, the "Financial Statements"). Except as set forth on Exhibit
C, the Financial  Statements were prepared from

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books and records of the Company and present  fairly the  financial  position of
the Company as of such date,  and the results of  operation  for the period then
ended  and  have  been  prepared  in  accordance  with  GAAP  and the pro  forma
assumptions set forth in the Financial Statements, consistently applied.

     3.10 Absence of Undisclosed  Liabilities.  To the Company's knowledge,  the
Company  does not have any  liability  (whether  known or  unknown  and  whether
absolute or contingent),  except for (a) liabilities shown on the Balance Sheet,
(b)  liabilities  which have arisen since the Balance Sheet Date in the ordinary
course of business and which are similar in nature and amount to the liabilities
which arose during the comparable  period of time in the  immediately  preceding
fiscal period and (c) contractual liabilities incurred in the ordinary course of
business which are not required by GAAP to be reflected on a balance sheet.

     3.11 Taxes. The amount shown on the Balance Sheet as provision for taxes is
sufficient  in all  material  respects  for  payment of all  accrued  and unpaid
federal,  state,  county,  local and foreign taxes for the period then ended and
all prior  periods.  The Company has filed or has obtained  presently  effective
extensions  with respect to all federal,  state,  county,  local and foreign tax
returns  which are required to be filed by it, such returns are true and correct
and all taxes shown thereon to be due have been timely paid with  exceptions not
material to the Company. Federal income tax returns of the Company have not been
audited by the Internal  Revenue  Service,  and no  controversy  with respect to
taxes  of any  type is  pending  or,  to the  best of the  Company's  knowledge,
threatened.  The Company has withheld or collected from each payment made to its
employees the amount of all taxes required to be withheld or collected therefrom
and has paid all such amounts to the appropriate taxing authorities when due.

     3.12 Property and Assets. Except as set forth on Exhibit C, the Company has
good  title to, or a valid  leasehold  interest  in, all of its  properties  and
assets  free  and  clear  of any  and  all  Security  Interests,  including  all
properties and assets  reflected in the Balance Sheet,  except those disposed of
since the date thereof in the ordinary  course of business,  except with respect
to such imperfections in title which do not and will not, individually or in the
aggregate,  have a Company  Material  Adverse Effect.  The properties and assets
(both tangible and intangible) of the Company  (including,  without  limitation,
the assets and  properties  reflected on the Financial  Statements)  are in good
operating  condition and repair (subject to normal wear and tear consistent with
the  age of the  properties  or  assets)  and,  together  with  the  rights  and
obligations of the Company under the intercompany agreements between the Company
and MSTR set forth on Section 3.12 of Exhibit C, are  sufficient  to conduct the
operations of the Company as currently conducted.

3.13  Intellectual Property.

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     (a) To the Company's knowledge,  the Company owns or has the valid right to
use all Intellectual  Property (as defined below in this Section 3.13) necessary
to the operation of its business. For purposes of this Agreement,  "Intellectual
Property"  means all (i)  patents  and  patent  applications  and all  reissues,
continuations,  divisions  and  re-examinations  thereof,  (ii)  copyrights  and
registrations  thereof,  (iii) mask works and registrations and applications for
registration thereof, (iv) computer software, data and documentation,  (v) trade
secrets  and   confidential   business   information,   whether   patentable  or
unpatentable and whether or not reduced to practice, know-how, manufacturing and
production  processes  and  techniques,  research and  development  information,
copyrightable  works,  financial,  marketing and business data, pricing and cost
information,  business and marketing  plans and customer and supplier  lists and
information,  (vi)  trademarks,  service  marks,  trade names,  domain names and
applications  and  registrations  therefor  and (vii) other  proprietary  rights
relating to any of the foregoing.

     (b)  To  the  Company's  knowledge,  none  of the  activities  or  business
conducted by the Company or proposed to be  conducted by the Company  infringes,
violates  or  constitutes  a  misappropriation  of (or in  the  past  infringed,
violated or constituted a misappropriation of) any Intellectual  Property of any
other person or entity.  The Company has not received  any  complaint,  claim or
notice alleging any such infringement, violation or misappropriation, and to the
knowledge of the  Company,  there is no basis for any such  complaint,  claim or
notice.

     (c) The Company has taken reasonable  precautions (i) to protect its rights
in its  Intellectual  Property and (ii) to maintain the  confidentiality  of its
trade secrets, know-how and other confidential Intellectual Property, and to the
Company's knowledge, there have been no acts or omissions (other than those made
based on reasonable, good faith business decisions) by the officers,  directors,
shareholders  and  employees  of the  Company  the  result of which  would be to
materially  compromise  the  rights  of the  Company  to  apply  for or  enforce
appropriate legal protection of the Company's Intellectual Property,  including,
without  limitation,  entering  into with each of its  employees  the  Company's
standard form Proprietary Information and Inventions Agreement, in substantially
the form  provided  to each of the  Purchasers.  Exhibit C hereto  sets  forth a
complete  and correct list of all United  States and foreign  patents and patent
applications,  trade names,  trademarks and service marks, trademark and service
mark  registrations,  applications for trademark and service mark registrations,
copyright registrations and applications for copyright registrations,  that form
a part of the  Intellectual  Property  owned by the Company or, where not owned,
expressly  licensed for use by the Company in the Business,  and all licenses or
other  agreements  under which the Company obtained or licenses the right to use
Intellectual Property. Except as set forth on Exhibit C hereto, to the Company's
knowledge, the Company owns or licenses the entire right, title, and interest in
and to all Intellectual Property necessary to conduct its business as currently

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conducted.  To the  knowledge  of the  Company,  no other  person  or  entity is
operating  under  or  otherwise  using  the  name  "Strategy.com"  or any  other
confusingly  similar name. Except as set forth on Exhibit C, neither the Company
nor, to the Company's knowledge, any of the Company's officers or employees have
any agreement or arrangements  with former  employers of the Company's  officers
and  employees  relating to the  obligation  of such  officers and  employees to
protect the confidential information or trade secrets of their respective former
employers,  the  assignment  of  inventions  of  the  former  employers,  or the
officer's or employee's engagement in activities competitive with those of their
former employers.  To the Company's  knowledge,  the activities of the Company's
officers and employees on behalf of the Company do not violate any agreements or
arrangements that any of them have with former employers.

     3.14 Compliance.  The Company has, in all material respects,  complied with
all laws, regulations and orders applicable to its present and proposed business
and has all material permits and licenses required thereby.  There is no term or
provision of any mortgage, indenture, contract, agreement or instrument to which
the Company is a party or by which it is bound, or of any provision of any state
or federal judgment, decree, order, statute, rule or regulation applicable to or
binding upon the Company,  which materially  adversely effects or, so far as the
Company may now foresee, in the future is reasonably likely to result in or have
a Company Material Adverse Effect.  To the Company's  knowledge,  no employee of
the Company is in violation of any term of any contract or covenant (either with
the Company or with another entity) relating to employment,  patents, assignment
of  inventions,   proprietary   information   disclosure,   non-competition   or
non-solicitation.

     3.15 Changes in Circumstances.  Except as set forth on Exhibit C hereto and
except  for the  transfer  of the assets of the  business  now  operated  by the
Company from MSTR to the Company,  since the Balance Sheet Date, the Company has
not: (i) sold,  transferred,  or otherwise  disposed of any of its properties or
assets outside the ordinary course of its business; (ii) acquired any properties
or assets  outside the ordinary  course of its business;  (iii) declared or paid
any dividend or made any other  distribution to its  shareholders or repurchased
any of its  outstanding  capital  stock;  (iv) made  any loan or  advance to any
Affiliate of the Company,  other than customary  advances for business expenses;
(v) sold,  assigned or transferred any of its patents,  trademarks,  copyrights,
trade  secrets  or  other  intangible   assets;   (vi)  materially  changed  any
compensation  arrangement  or agreement  with any officer of the Company;  (vii)
received notice of any impending resignation or termination of employment of any
key officer of the Company;  (viii)  received  notice that there has been a loss
of, or material order  cancellation  by any major customer of the Company;  (ix)
suffered  any event which has resulted  in, or could  reasonably  be expected to
result in, a Company Material Adverse Effect; (x) sustained any damage, loss, or
destruction of or to any of its assets or properties  (whether or not covered by
insurance);  (xi)  experienced  any labor trouble or any material  change in its
personnel outside the

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ordinary  course of business or (xii) agreed to or obligated  itself to take any
of the actions identified in clauses (i) through (xi) above.

     3.16 Employee Matters.  To the Company's  knowledge,  during the past three
years,  no officer,  director  or employee of the Company has been  investigated
for, arrested for, been part of a proceeding for, charged with,  convicted of or
indicted for any crime, nor has any officer, director or employee of the Company
been engaged in any criminal activity.  To the Company's  knowledge,  during the
past  three  years,  no  officer  or  director  of the  Company or member of the
Company's management team has declared bankruptcy or been an officer or director
of any other company or entity that has declared  bankruptcy or been involved in
bankruptcy proceedings.

     3.17 Employee Plans. Exhibit C sets forth all deferred compensation, profit
sharing,  pension,  retirement,  stock option or purchase  plan or other plan or
arrangement  providing for employee benefits  ("Employee  Plans").  All material
obligations  regarding  any  Employee  Plans that are due to be  satisfied on or
prior to the  date of this  Agreement  have  been  satisfied  and  there  are no
outstanding  defaults or violations  under any Employee Plans by the Company or,
to the  knowledge  of the  Company,  by any other  party  thereto.  There are no
outstanding  actions,  suits,  or claims relating to any Employee Plan or to the
assets  thereof,  except for the payment of benefits  thereunder in the ordinary
course of  administration  as such  payments  come  due.  Except as set forth on
Exhibit C, no improvement to the benefits  accrued under the Employee Plans have
been made or promised  since  December  31, 1999 and all  Employee  Plans are in
compliance  with the terms  thereof and  applicable  laws and  regulations.  The
Company is not a party to any collective bargaining agreements.

     3.18 Books and Records.  The minute books of the Company  contain  complete
and  accurate  records  of all  meetings  and  other  corporate  actions  of its
stockholders and its Board of Directors and committees thereof. The stock ledger
of the Company is complete and accurate and reflects all  issuances,  transfers,
repurchases and cancellations of shares of capital stock of the Company.

     3.19  Environmental  Matters.  The  Company has  complied  in all  material
respects  with  all  applicable  Environmental  Laws (as  defined  below in this
Section  3.19).  There  is no  pending  or,  to the  knowledge  of the  Company,
threatened  civil or criminal  litigation,  written notice of violation,  formal
administrative  proceeding, or investigation,  inquiry or information request by
any  Governmental  Entity,  relating  to any  Environmental  Law  involving  the
Company. For purposes of this Agreement,  "Environmental Law" means any federal,
state or local law,  statute,  rule or  regulation or the common law relating to
the protection of human health or the environment,  including without limitation
CERCLA (as defined below), the
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Resource Conservation and Recovery Act of 1976, any statute, regulation or order
pertaining to (i) treatment, storage, disposal, generation and transportation of
industrial,  toxic or hazardous  materials or  substances  or solid or hazardous
waste;  (ii) air,   water  and  noise  pollution;   (iii) groundwater  and  soil
contamination;  (iv) the  release or threatened  release into the environment of
industrial,  toxic or hazardous  materials or substances,  or solid or hazardous
waste, including without limitation, emissions, discharges,  injections, spills,
escapes or dumping of pollutants, contaminants, or chemicals; (v) the protection
of wild  life,  marine  life and  wetlands,  including  without  limitation  all
endangered and threatened  species;  (vi) storage tanks,  vessels,  abandoned or
discarded  barrels,  containers and other closed  receptacles;  (vii) health and
safety of employees and other persons; and (viii) manufacture,  processing, use,
distribution,  treatment,  storage,  disposal,  transportation  or  handling  of
pollutants,  contaminants,  toxic or hazardous materials or substances or oil or
petroleum  products or solid or hazardous  waste.  As used in this Section 3.19,
the terms  "release" and  "environment"  shall have the meaning set forth in the
federal Comprehensive Environmental Response,  Compensation and Liability Act of
1980 ("CERCLA").

     3.20 Web Site.  With  respect to the web site  located on the  Internet  at
http://www.strategy.com, which is constructed, owned and operated by the Company
in connection with the Company's business (the "Web Site"):

(a)  The Company has obtained the required  Universal  Resource  Locator ("URL")
     under  the  Strategy.com  domain  name  and  has  applied  for  appropriate
     trademark registrations for the URL.

(b)  To the Company's knowledge,  the hosting and/or maintenance  providers with
     whom the Company has entered  into  service  contracts:  (A) have  adequate
     computer  resources and system  redundancy to accommodate  service outages;
     (B) have capacity to accommodate anticipated increases in traffic levels to
     the Web  Site;  and (C) will  maintain  and  keep the Web Site  operational
     twenty-four  (24) hours a day,  seven (7) days a week  (subject to periodic
     interruptions  for scheduled  maintenance  consistent in the industry).  In
     addition, the Company has retained control of the design and content of the
     Web Site.

     3.21  Contracts.  Exhibit C hereto  sets  forth each  contract,  agreement,
undertaking,  commitment  (written  or oral) or other  instrument  to which  the
Company is a party or by which the Company or any of its assets are bound (each,
a "Contract") that is of a type described below:

(a)  Any Contract with any supplier, representative,  distributor or sales agent
     which is not terminable  without cost or penalty to the Company on 60 days'
     or less notice;

                                       10
<PAGE>

(b)  Any Contract with any Governmental Authority;

(c)  Any Contract involving payments or receipts in excess of $50,000;

(d)  Any Contract  containing a covenant  not to compete or  restricting  in any
     respect the Company's  ability to transact  business in any jurisdiction of
     the United States or a foreign country;

(e)  Any  Contracts  or  other  agreements  containing  Company  indemnification
     obligations;

(f)  Any Contract with any affiliate of the Company;

(g)  Any indenture,  mortgage,  loan or credit  Contract under which the Company
     has  borrowed  any  money or  issued  any note,  bond,  indenture  or other
     evidence of indebtedness,  or guaranteed  indebtedness  borrowed by others;
     and

(h)  Any other Contract material to the assets, properties, financial condition,
     results of operations or business of the Company.

     Each such Contract is a valid and binding  obligation of the Company and is
in full  force and  effect.  Except as  expressly  set forth on  Exhibit  C, the
Company has performed all of its obligations required to be performed though the
date hereof under the Contracts so listed or described and the Company is not in
breach  or  default  in any  material  respect  thereunder  nor has any event or
circumstance  occurred  which,  with  notice  or lapse  of time or  both,  would
constitute any such breach or default. To the knowledge of the Company,  none of
the other  parties to such  Contracts  is in breach or  default  in any  respect
thereunder  nor has any event or  circumstance  occurred  which,  with notice or
lapse of time or both, would constitute any such breach or default.

     3.22 Insurance Policies.  Exhibit C lists all insurance policies maintained
by the  Company  or under  which  the  Company  is  covered  in  respect  of its
properties,  assets, business or personnel as of the date hereof. Such insurance
policies  are in full force and effect  and the  Company is not in default  with
respect to the payment of any  premium or  compliance  with any of the  material
provisions contained in any such policy.

     3.23  Suppliers.  The Company has not  received  any notice that any of the
Company's current suppliers intend to cease doing business with the Company.

                                       11
<PAGE>

     3.24 No Conflict of Interest. Except as set forth on Exhibit C, the Company
is not indebted,  directly or indirectly, to any of its officers or directors or
to their respective spouses or children,  in any amount whatsoever other than in
connection with expenses or advances of expenses incurred in the ordinary course
of  business  or  relocation  expenses  of  employees.  None  of  the  Company's
employees,  officers or directors,  nor any members of their immediate  families
is, directly or indirectly, indebted to the Company. Except as a result of their
ownership  interests in MSTR, to the Company's  knowledge,  none of such persons
has any direct or indirect  ownership  interest in any firm or corporation  with
which the  Company  is  affiliated  or with  which the  Company  has a  business
relationship,  or any firm or corporation that competes with the Company, except
that  employees,  officers,  or  directors  of the  Company and members of their
immediate  families may own stock in publicly traded  companies that may compete
with the Company.  No member of the immediate  family of any officer or director
of the Company is directly or  indirectly  interested  in any material  contract
with the Company.

4.  Representations  of  the  Purchasers.   Each  of  the  Purchasers  severally
represents and warrants to the Company as follows:

     4.1 Investment.  Such Purchaser is acquiring the Shares,  and the shares of
Common  Stock into which the Shares may be  converted,  for his,  her or its own
account for investment  and not with a view to, or for sale in connection  with,
any  distribution  thereof,  nor with any present  intention of  distributing or
selling the same; and, except as contemplated by this Agreement and the Exhibits
hereto,  such Purchaser has no present or contemplated  agreement,  undertaking,
arrangement,   obligation,   indebtedness   or  commitment   providing  for  the
disposition  thereof.  Such Purchaser is an "accredited  investor" as defined in
Rule 501(a) under the Securities Act.

     4.2  Authority.  Such  Purchaser has full power and authority to enter into
and to perform this Agreement in accordance with its terms.  Any Purchaser which
is a  corporation,  partnership  or  trust  represents  that  it  has  not  been
organized,   reorganized  or  recapitalized  specifically  for  the  purpose  of
investing in the Company.

     4.3  Experience.  Such  Purchaser  has  received the  opportunity  from the
Company to ask  questions  and receive  answers  concerning  the Company and the
representations  of the Company in this  Agreement.  The officers of the Company
have made available to such Purchaser any and all written  information which he,
she or it has requested and have answered to such  Purchaser's  satisfaction all
inquiries made by such  Purchaser  regarding the business of the Company and the
transactions  contemplated  by this  Agreement.  Such  Purchaser has  sufficient
knowledge  and  experience in finance and business that he, she or it is capable
of evaluating the

                                       12
<PAGE>

risks and merits of his, her or its investment in the Company and such Purchaser
is able financially to bear the risks thereof.

5.  Conditions to the  Obligations of the Purchasers With Respect to the Initial
Closing. The obligations of each of the Purchasers under Section 1.2 hereto with
respect to the Initial Closing, are subject to the fulfillment, or the waiver by
such  Purchaser,  of each of the  following  conditions on or before the Initial
Closing:

     5.1 Accuracy of  Representations  and Warranties.  Each  representation and
warranty  contained in Sections 3 shall be true on and as of the Initial Closing
Date with the same effect as though such  representation  and  warranty had been
made on and as of that date.

     5.2  Performance.  The Company  shall have  performed and complied with all
agreements and conditions  contained in this Agreement  required to be performed
or complied with by the Company prior to or at the Initial Closing.

     5.3 Ancillary Agreements.

(a)  Stockholders' Voting Agreement. The Stockholders' Voting Agreement attached
     hereto as Exhibit E (the "Stockholders'  Voting Agreement") shall have been
     executed  and  delivered  by each of the  Purchasers  and by  MicroStrategy
     Incorporated  ("MSTR").  All such  action  shall  have been taken as may be
     necessary to elect a Board of Directors of the Company,  effective upon the
     Initial Closing, in accordance with the Stockholders' Voting Agreement.

(b)  Investor Rights Agreement. The Investor Rights Agreement attached hereto as
     Exhibit F (the "Investor  Rights  Agreement")  shall have been executed and
     delivered by the Company, each of the Purchasers and MSTR.

(c)  Memorandum of Understanding.  The Binding  Memorandum of attached hereto as
     Exhibit G (the "Binding MOU") shall have been executed and delivered by the
     Company, Aether Systems, Inc. and MSTR.

     5.4 Certificates and Documents. The Company shall have delivered to special
counsel to the Purchasers:

(a)  The Restated  Charter  certified by the  Secretary of State of the State of
     Delaware;

                                       13
<PAGE>

(b)  Certificates,  as of the most recent practicable dates, as to the corporate
     good standing of the Company  issued by the Secretary of State of the State
     of Delaware and the Secretary of the State of the Commonwealth of Virginia;

(c)  By-laws of the Company,  certified by its Secretary or Assistant  Secretary
     as of the Initial Closing Date;

(d)  Resolutions  of the Board of  Directors  of the  Company,  authorizing  and
     approving   all  matters  in  connection   with  this   Agreement  and  the
     transactions  contemplated hereby,  certified by the Secretary or Assistant
     Secretary of the Company as of the Initial Closing Date;

(e)  Certificates  representing  the Series A Preferred  Stock being  issued and
     sold by the Company to the Purchasers  pursuant to Section 1.2 hereof, duly
     recorded  on  the  books  of the  Company  in the  name  of the  Purchasers
     purchasing such Series A Preferred Stock;

(f)  A  certificate  of the  Secretary  of the  Company,  in form and  substance
     satisfactory  to  counsel  for the  Purchasers,  certifying  that  attached
     thereto are true and correct copies of (1) the By-laws of the Company,  and
     (2)  resolutions  duly and validly adopted by the Board of Directors of the
     Company  authorizing  the execution and delivery of this  Agreement and the
     other  Ancillary  Agreements  and  the  consummation  of  the  transactions
     contemplated hereby and thereby; and

(g)  The legal opinion of Hale and Dorr LLP, counsel to the Company, in the form
     attached as Exhibit H.

     5.5  Compliance  Certificates.  The  Company  shall have  delivered  to the
Purchasers  a  certificate,  executed  by an officer of the  Company,  dated the
Initial Closing Date,  certifying to the fulfillment of the conditions specified
in Sections 5.1 and 5.2 of this Agreement.

     5.6 Approvals. All pre-issuance registrations, qualifications, permits, and
approvals required,  if any, under applicable state securities laws or otherwise
required for the lawful execution and delivery of this Agreement and performance
of the transactions  hereunder,  including without limitation,  the offer, sale,
issuance, and delivery of the Series A Preferred Stock, will have been obtained.

     5.7 Election of Representative.  The Board of Directors of the Company will
have been elected in accordance with the Stockholders' Voting Agreement.

                                       14
<PAGE>

     5.8 Other Matters.  All corporate and other  proceedings in connection with
the   transactions   contemplated  by  this  Agreement  and  all  documents  and
instruments  incident to such transactions  shall be reasonably  satisfactory in
substance and form to the Purchasers, and the Purchasers shall have received all
such  counterpart  originals or  certified or other copies of such  documents as
they may reasonably request.

6.  Conditions  to the  Obligations  of the  Company  with  Respect to the First
Closing. The obligations of the Company under Section 1.2 of this Agreement with
respect to the First Closing are subject to fulfillment,  or the waiver,  of the
following condition on or before the Initial Closing:

     6.1 Accuracy of Representations  and Warranties.  The  representations  and
warranties of the  Purchasers  contained in Section 4 shall be true on and as of
the Initial Closing Date with the same effect as though such representations and
warranties had been made on and as of that date.

     6A.  Condition to the  Obligations  of the  Purchasers and the Company with
Respect to the Second Closing. The obligations of each Purchaser and the Company
under  Section  1.2 of this  Agreement  with  respect to the Second  Closing are
subject to the fulfillment,  or the waiver by such Purchaser and the Company, of
each of the following conditions on or before the Second Closing:

     6A.1 HSR  Compliance.  The filing and waiting  period  requirements  of the
Hart-Scott-Rodino  Antitrust  Improvements  Act of  1976,  as  amended,  as such
requirements  relate to the transactions  contemplated by this Agreement,  shall
have been satisfied.

     6A.2 Material  Adverse  Effect.  There shall not have occurred any event or
condition  subsequent  to the Initial  Closing  which has  resulted in a Company
Material Adverse Effect; provided,  however, that none of the following shall be
deemed in themselves, either alone or in combination, to constitute, and none of
the following shall be taken into account in determining  whether there has been
or will be, a Company Material Adverse Effect for purposes of this Section 6A.2:
(a)  solely as a result  of any  failure  by  Company  or MSTR to meet  internal
projections or forecasts or published  revenue or earnings  predictions  for any
period  ending (or for which  revenues or earnings are released) on or after the
date of this Agreement; (b) any adverse change, effect, event, occurrence, state
of facts or development  attributable to conditions  affecting the industries in
which Company participates,  the U.S. economy as a whole or foreign economies in
any locations where Company or any of its affiliates have material operations or
sales; (c) any adverse change,  effect, event, of occurrence,  state of facts or
development  resulting from or relating to compliance  with the terms of, or the
taking of any action required by, this

                                       15
<PAGE>

Agreement; or (d) any adverse change, effect, event, occurrence,  state of facts
or development arising from or relating to any change in accounting requirements
or principles.

     6A.3 Accuracy of Representations  and Warranties.  The  representations and
warranties of the Company contained in Sections 3.1, 3.2 (except with respect to
(a) options  approved by the Board of Directors of the Company or a compensation
committee  thereof,  and (b) any rights of the Purchasers  with respect to their
ownership of Series A Preferred Stock), 3.5, 3.6 and 3.7 shall be true on and as
of the  date  of the  Second  Closing  with  the  same  effect  as  though  such
representations and warranties had been made on and as of that date.

     7. Affirmative Covenants of the Company.

     7.1 Inspection.  The Company shall permit each Purchaser, or any authorized
representative  thereof,  to visit and inspect the  properties  of the  Company,
including its corporate and financial  records,  and to discuss its business and
finances with officers of the Company,  during normal  business hours  following
reasonable notice and as often as may be reasonably requested.

     7.2 Financial  Statements and Other Information.  The Company shall deliver
to the Purchasers:

(a)  within 90 days after the end of each fiscal year of the Company, an audited
     balance  sheet  of the  Company  as at the end of  such  year  and  audited
     statements  of  income  and of cash  flows of the  Company  for such  year,
     certified  by  certified   public   accountants  of  established   national
     reputation selected by the Company, and prepared in accordance with GAAP;

(b)  within 45 days after the end of each fiscal  quarter of the Company  (other
     than the fourth quarter),  an unaudited  balance sheet of the Company as at
     the end of such  quarter,  and  unaudited  statements of income and of cash
     flows of the  Company for such  fiscal  quarter and for the current  fiscal
     year to the end of such fiscal quarter;

(c)  within 30 days of the end of each month, and unaudited income statement and
     a statement  of cash flows and balance  sheet for and as of the end of such
     month in reasonable detail;

(d)  within 30 days  prior to the  beginning  of each  fiscal  year,  the annual
     budget and operating  plans for such fiscal year (and as soon as available,
     any subsequent revisions thereto); and

                                       16
<PAGE>

(e)  such  other  information  relating  to the  financial  condition,  business
     prospects  or  corporate  affairs  of the  Company  as a  Purchaser  or any
     assignee of a Purchaser may from time to time request.

     7.3  Reservation of Common Stock.  The Company shall reserve and maintain a
sufficient number of shares of Class A Common Stock for issuance upon conversion
of all of the outstanding Shares.

     7.4 Further Assurances. The Company, at its expense, shall promptly execute
and deliver to the Purchasers upon reasonable request all such other and further
documents,  agreements  and  instruments  in compliance  with or pursuant to its
covenants  and  agreements  herein,  and  shall  make any  recordings,  file any
notices,  and obtain any consents as may be reasonably  necessary or appropriate
in connection therewith.

     7.5  Conflicting  Agreements.  The  Company  shall not enter into or become
subject  to any  Contract  or  instrument  which by its terms  would  (under any
circumstances) prevent the Company from performing any of the provisions of this
Agreement or any other Ancillary Agreements.

     7.6 Key Person Life  Insurance.  As soon as practical after the appointment
of a Chief Executive Officer and a Chief Financial  Officer of the Company,  the
Company  shall obtain key person life  insurance on such officers in the amounts
of  $2,000,000  and  $1,000,000,  respectively.  As soon as practical  after the
Initial  Closing,  the Company  shall  obtain key person life  insurance on Nick
Weir,  the  Company's  President,  and  Justin  Langseth,  the  Company's  Chief
Technology Officer, in the amounts of $1,000,000 and $2,000,000, respectively.

     7.7 Indebtedness.  The Company shall not, without the prior written consent
of the Purchasers (i) incur, assume or suffer to exist any material indebtedness
except as approved by the Board of Directors  of the Company,  or prepay or make
any advance  payment on any  indebtedness  of the Company  (now or  hereafter in
existence),  except  in  accordance  with the terms of such  indebtedness  or as
otherwise  approved by the Board of Directors  of the Company,  or (ii) make any
loan or  distribution  to or  assume  any  indebtedness  from MSTR or any of its
affiliates,  except as contemplated by the intercompany  agreements  between the
Company and MSTR set forth on Section 3.12 of Exhibit C.

     7.8 Board of Director  Meetings . The Company shall ensure that meetings of
its Board of Directors are held not less than quarterly,  and subject to receipt
of expense reports containing such detail as the Company may reasonably request,
shall  reimburse  Directors  for their  reasonable  travel  expenses,  including
without limitation, the cost of air fare and

                                       17
<PAGE>

any necessary meals and lodging,  incurred in connection with attending meetings
of the Board of Directors or performing  such other  business as and if required
on behalf of the Company.

     7.9 Maintenance of Corporate Existence.  The Company shall preserve,  renew
and keep in full force and effect its corporate existence and qualification
as necessary or desirable in the normal conduct of its business.

     7.10 Conduct of  Business.  The Company  shall  conduct its business in the
business  lines being  conducted as of the date hereof,  or  reasonably  related
thereto or supported  thereby and will not  materially  change the nature of the
business without consent of the Board of Directors.

     7.11  Proprietary  Information  Agreement.  Each  person  now or  hereafter
employed  by  the  Company  or  any  subsidiary   with  access  to  confidential
information  will  enter  into  the  Company's   standard  form  of  Proprietary
Information and Invention Assignment Agreement, with such changes thereto as may
be approved by the Company's Board of Directors.

     7.12  Termination of Covenants.  The covenants of the Company  contained in
Sections 7.1 through 7.9 shall terminate,  and be of no further force or effect,
upon the  earlier of (a) the  closing  of the  Company's  first  firm-commitment
underwritten   public   offering  of  Common  Stock  pursuant  to  an  effective
registration  statement under the Securities  Act,  resulting in net proceeds to
the Company of at least $30,000,000, at a price to the public of at least $10.00
per share (as adjusted for stock splits, stock dividends,  recapitalizations and
similar  events),  and (b) a merger or consolidation of the Company with or into
any other  corporation  or  corporations  in which the holders of the  Company's
outstanding  shares  immediately  before  such  merger or  consolidation  do not
immediately  after such merger or  consolidation,  retain stock  representing  a
majority  of the voting  power of the  surviving  corporation  of such merger or
consolidation  or  stock  representing  a  majority  of the  voting  power  of a
corporation that wholly owns, directly or indirectly,  the surviving corporation
of such merger or consolidation.

8. Transfer of Shares.

     8.1 Restricted Shares.  "Restricted Shares" means (i) the Shares,  (ii) the
shares of Common  Stock  issued  or  issuable  upon  conversion  of the  Shares,
(iii) any  shares of capital  stock of the Company  acquired  by the  Purchasers
pursuant to the Investor Rights Agreement,  and (iv) any other shares of capital
stock of the  Company  issued in  respect  of such  shares (as a result of stock
splits,  stock  dividends,  reclassifications,   recapitalizations,  or  similar
events);  provided,  however,  that shares of Common Stock which are  Restricted
Shares shall cease to be

                                       18
<PAGE>

Restricted  Shares (x) upon any sale pursuant to a registration  statement under
the  Securities  Act,  Section 4(1)  of the Securities Act or Rule 144 under the
Securities  Act or (y) at such time as they become  eligible for sale under Rule
144(k) under the Securities Act.

     8.2 Requirements for Transfer.

(a)  Restricted  Shares shall not be sold or transferred  unless either (i) they
     first  shall have been  registered  under the  Securities  Act, or (ii) the
     Company first shall have been  furnished  with an opinion of legal counsel,
     reasonably  satisfactory  to the  Company,  to the effect that such sale or
     transfer is exempt from the  registration  requirements  of the  Securities
     Act.

(b)  Notwithstanding the foregoing,  no registration or opinion of counsel shall
     be required for (i) a  transfer by a Purchaser  which is a corporation to a
     wholly  owned  subsidiary  of such  corporation,  a transfer by a Purchaser
     which is a  partnership  to a  partner  of such  partnership  or a  retired
     partner of such  partnership  who retires after the date hereof,  or to the
     estate of any such partner or retired partner, or a transfer by a Purchaser
     which is a limited  liability company to a member of such limited liability
     company or a retired  member who  resigns  after the date  hereof or to the
     estate of any such member or retired  member;  provided that the transferee
     in each case agrees in writing to be subject to the terms of this Section 8
     to the same  extent  as if it were the  original  Purchaser  hereunder,  or
     (ii) a transfer made in accordance with Rule 144 under the Securities Act.

          8.3 Legend. Each certificate representing Restricted Shares shall bear
     a legend substantially in the following form:

            "The shares represented by this certificate have not
            been registered under the Securities Act of 1933, as
            amended, and may not be offered, sold or otherwise
            transferred, pledged or hypothecated unless and until
            such shares are registered under such Act or an
            opinion of counsel satisfactory to the Company is
            obtained to the effect that such registration is not
            required."

     The foregoing  legend shall be removed from the  certificates  representing
any Restricted  Shares,  at the request of the holder  thereof,  at such time as
they become  eligible for resale  pursuant to  Rule 144(k)  under the Securities
Act.

9.    Indemnification.

                                       19
<PAGE>

     9.1  Indemnification  by the  Company.  Notwithstanding  anything  in  this
Agreement  to  the  contrary,  but  subject  to the  other  provisions  of  this
Section 9,  the Company shall indemnify,  defend,  and hold the Purchasers,  the
Purchasers'  directors,  partners,  officers  and  affiliates,  and each of such
partners'   and   Affiliates'   officers,   directors,    partners,   employees,
representatives  and  affiliates,  (collectively,  the "Purchaser  Indemnitees")
harmless from and against,  and shall  reimburse  them for, any and all demands,
claims, losses, liabilities, damages, costs, and expenses whatsoever (including,
without limitation,  any fines, penalties,  reasonable fees and disbursements of
counsel incurred by the Purchaser  Indemnitees in investigating or defending any
of the  foregoing,  and other  reasonable  expenses  incurred  investigating  or
defending  any of the  foregoing  or  enforcing  this  Agreement)  sustained  or
incurred by a Purchaser  Indemnitee resulting from or arising in connection with
any inaccuracy in or breach of any of the  representations  or warranties of the
Company  set  forth in this  Agreement  or the  Schedules  or  Exhibits  hereto;
provided,  however, that the total liability of the Company under this Section 9
shall not exceed the aggregate Purchase Price paid by the Purchaser  Indemnitees
pursuant to this Agreement.

     9.2  Indemnification  by the Purchasers.  Notwithstanding  anything in this
Agreement to the contrary,  but subject to the other  provisions of this Section
9, each of the Purchasers shall severally and not jointly indemnify, defend, and
hold the Company,  the Company's directors,  partners,  officers and affiliates,
and  each of such  partners'  and  Affiliates'  officers,  directors,  partners,
employees,   representatives   and  affiliates,   (collectively,   the  "Company
Indemnitees")  harmless from and against,  and shall reimburse them for, any and
all  demands,  claims,  losses,   liabilities,   damages,  costs,  and  expenses
whatsoever (including, without limitation, any fines, penalties, reasonable fees
and   disbursements   of  counsel   incurred  by  the  Company   Indemnitees  in
investigating or defending any of the foregoing,  and other reasonable  expenses
incurred  investigating  or defending  any of the  foregoing  or enforcing  this
Agreement)  sustained  or incurred  by a Company  Indemnitee  resulting  from or
arising  in  connection  with  any  inaccuracy  in  or  breach  of  any  of  the
representations  or warranties of such  Purchaser set forth in this Agreement or
the Schedules or Exhibits hereto; provided, however, that the total liability of
such  Purchaser  under this  Section 9 shall not exceed the  aggregate  Purchase
Price paid by such Purchaser pursuant to this Agreement.

     9.3  Indemnification  Notice.  In the event that (i) an event  occurs which
gives a person or entity a right to indemnification  hereunder or (ii) any third
party  claim is asserted  against a person or entity with  respect to which such
person or entity is entitled to indemnification hereunder, such person or entity
(the "Indemnified  Party") shall,  within 60 days of the later of the occurrence
of the event  giving  rise to the claim or the date that the  indemnified  party
learned of such claim  (provided,  however,  that if a claim arises by virtue of
litigation,  then in no event  less  than 10 days  prior to the date in which an
appearance or answer is due,

whichever  is  earlier),  notify the person or entity  obligated to indemnify it
(the  "Indemnifying  Party")  of such  claim by  delivery  of a  written  notice
describing the claim and indicating the basis for indemnification hereunder. The
Indemnifying  Party will have the right,  upon written notice to the Indemnified
Party within 10 days after receipt from the Indemnified  Party of notice of such
claim, to conduct at its expense the defense against such claim in its own name,
or if  necessary  in the name of the  Indemnified  Party.  In the event that the
Indemnifying  Party fails to give such notice, it will be deemed to have elected
not to  conduct  the  defense  of the  subject  claim,  and in  such  event  the
Indemnified Party will have the right to conduct such defense and, only with the
prior consent of the Indemnifying Party which will not be unreasonably withheld,
to compromise  and settle the claim.  In the event that the  Indemnifying  Party
does elect to conduct the defense of the subject claim,  the  Indemnified  Party
shall  cooperate  with  and  make  available  to  the  Indemnifying  Party  such
assistance  and  materials  as may be  reasonably  requested  by it,  all at the
expense of the Indemnifying  Party and the Indemnified Party will have the right
at its expense to  participate  in the defense,  provided  that the  Indemnified
Party will have the right to compromise and settle the claim only with the prior
written  consent  of  the  Indemnifying  Party.  Any  settlement  to  which  the
Indemnifying Party has consented in writing will conclusively be deemed to be an
obligation  with  respect  to  which  the  Indemnified   Party  is  entitled  to
indemnification hereunder.

10.   Termination and Default.

     The  obligations  of  the  Purchasers  and  the  Company  with  respect  to
consummating the Second Closing shall terminate in upon the occurrence of any of
the following events:

     10.1 Mutual  Consent.  The  obligations of the parties hereto to consummate
the  Second  Closing  may be  terminated  by the mutual  written  consent of the
parties.

     10.2 Order or Decree.  The  obligations of the parties hereto to consummate
the Second  Closing may be  terminated  by any  Purchaser  or the Company if any
Governmental  Authority shall have issued an order, decree,  ruling or taken any
other action  restraining,  enjoining or otherwise  prohibiting  in any material
respects the transactions  contemplated hereby and such order, decree, ruling or
other action shall have become final and nonappealable.

     10.3 Outside Date. The  obligations of the parties hereto to consummate the
Second Closing may be terminated by either party if (a) the Second Closing shall
not have  occurred by December 31, 2000 (the "Outside  Date"),  or (b) if one or
more conditions to the other party's  obligation to consummate the  transactions
contemplated hereby cannot be satisfied by the Outside Date; provided,  however,
that no party may  exercise its rights under this Section 10 if such party is in
material breach or default under this Agreement.

                                       20
<PAGE>

     10.4 Procedure  Upon  Termination.  In the event of the  termination of the
obligations  of the parties  hereto to consummate  the Second  Closing,  written
notice  thereof  shall  promptly  be given to the other  parties  hereto and the
obligations  of the  parties  hereto to  consummate  the  Second  Closing  shall
terminate,  all  further  obligations  of the parties  hereunder  to satisfy the
conditions precedent to the Second Closing shall terminate, and the transactions
relating to the Second Closing shall be abandoned  without further action by any
of the parties hereto.

     10.5 Effect of  Termination.  Nothing in this  Article X  shall relieve any
party  hereto  of any  liability  for  intentional  or  willful  breach  of this
Agreement,  including  willful  failure to fulfill a  condition  or to perform a
covenant.  The parties shall have no liability as a result of the failure of the
Second  Closing to occur for any reason  other  than an  intentional  or willful
breach of this Agreement.

11.   Miscellaneous.

     11.1 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the  parties and their  respective  successors  and  permitted
assigns.  This  Agreement,  and the rights  and  obligations  of each  Purchaser
hereunder, may be assigned by such Purchaser to any person or entity to which at
least 1,000,000  Shares are  transferred by such Purchaser,  and such transferee
shall be deemed a "Purchaser" for purposes of this Agreement;  provided that the
transferee  provides  written  notice of such  assignment  to the  Company.  The
Company may not assign its rights under this Agreement.

     11.2  Confidentiality.  Each Purchaser  agrees that he, she or it will keep
confidential and will not disclose, divulge or use for any purpose other than to
monitor his, her or its investment in the Company any confidential,  proprietary
or secret  information which such Purchaser may obtain from the Company pursuant
to financial statements, reports and other materials submitted by the Company to
such  Purchaser  pursuant  to this  Agreement,  or  pursuant  to  visitation  or
inspection rights granted hereunder  ("Confidential  Information"),  unless such
Confidential  Information  is  known,  or until  such  Confidential  Information
becomes known, to the public (other than as a result of a breach of this Section
11.2 by such  Purchaser);  provided,  however,  that a  Purchaser  may  disclose
Confidential  Information (i) to its attorneys,  accountants,  consultants,  and
other  professionals  to the  extent  necessary  to  obtain  their  services  in
connection  with monitoring its investment in the Company and to the extent that
such  individuals  agree to be bound by the  provisions  of this  Section  11.2,
(ii) to any  prospective  purchaser of any Shares from such Purchaser as long as
such prospective  purchaser agrees to be bound by the provisions of this Section
11.2,  (iii) to any affiliate of such Purchaser or to a partner,  stockholder or
subsidiary of such Purchaser,  provided that such affiliate agrees in writing to
be bound by the  provisions  of

                                       21
<PAGE>

this Section 11.2,  or (iv) as may  otherwise be required by law,  provided that
the Purchaser takes reasonable steps to minimize the extent of any such required
disclosure.

     11.3  Survival  of   Representations   and   Warranties.   All  agreements,
representations and warranties  contained herein shall survive the execution and
delivery  of  this  Agreement  and  the  Initial  Closing  of  the  transactions
contemplated hereby.

     11.4  Expenses.  The  Company  shall  pay,  at  the  Initial  Closing,  the
reasonable fees and disbursements of Jones, Day, Reavis & Pogue,  counsel to the
Purchasers,  in connection  with the  preparation of this  Agreement;  provided,
however,  that in no event  shall  the  Company  be  obligated  to pay more than
$25,000 in the aggregate pursuant to this Section 11.4.

     11.5 Brokers. The Company and each Purchaser (i) represents and warrants to
the other parties  hereto that he, she or it has not retained a finder or broker
in connection with the  transactions  contemplated by this Agreement (other than
Friedman,  Billings,  Ramsey & Co. Inc.),  and (ii) will  indemnify and save the
other  parties  harmless  from and against any and all  claims,  liabilities  or
obligations  with  respect to  brokerage  or finders'  fees or  commissions,  or
consulting  fees  in  connection  with  the  transactions  contemplated  by this
Agreement asserted by any person on the basis of any statement or representation
alleged to have been made by such indemnifying party.

     11.6 Severability.  The invalidity or  unenforceability of any provision of
this  Agreement  shall not affect the  validity or  enforceability  of any other
provision of this Agreement.

     11.7 Specific  Performance.  In addition to any and all other remedies that
may be  available  at law in the  event of any  breach of this  Agreement,  each
Purchaser  shall be entitled  to  specific  performance  of the  agreements  and
obligations  of the  Company  hereunder  and to such other  injunctive  or other
equitable relief as may be granted by a court of competent jurisdiction.

     11.8 Governing  Law. This  Agreement  shall be governed by and construed in
accordance with the internal laws of the State of Delaware (without reference to
the conflicts of law provisions thereof).

     11.9 Notices.  All notices,  requests,  consents,  and other communications
under this Agreement shall be in writing and shall be deemed  delivered  (i) two
business days after being sent by registered or certified  mail,  return receipt
requested,  postage  prepaid or  (ii) one  business  day after  being sent via a
reputable  nationwide  overnight courier service  guaranteeing next business day
delivery, in each case to the intended recipient as set forth below:

                                       22
<PAGE>

     If to the Company, at 8000 Towers Crescent Drive,  Vienna,  Virginia 22182,
Attention:  President,  or at such other  address or  addresses as may have been
furnished in writing by the Company to the Purchasers,  with a copy to Thomas S.
Ward, Esq., Hale and Dorr LLP, 60 State Street, Boston, MA 02109; or

     If to a  Purchaser,  at  the  address  set  forth  on  Exhibit A  for  such
Purchaser,  or at such other address or addresses as may have been  furnished to
the Company in writing by such Purchaser; or

     Any party may give any  notice,  request,  consent  or other  communication
under this  Agreement  using any other  means  (including,  without  limitation,
personal delivery,  messenger service,  telecopy, first class mail or electronic
mail),  but no such notice,  request,  consent or other  communication  shall be
deemed to have been duly given  unless and until it is actually  received by the
party for whom it is  intended.  Any  party  may  change  the  address  to which
notices,  requests,  consents  or  other  communications  hereunder  are  to  be
delivered  by giving  the other  parties  notice in the manner set forth in this
Section.

     11.10 Complete Agreement.  This Agreement  (including its Exhibits) and the
Ancillary  Agreements  constitute the entire agreement and  understanding of the
parties  hereto with respect to the subject  matter  hereof and  supersedes  all
prior agreements and understandings relating to such subject matter.

     11.11  Amendments and Waivers.  Except as otherwise  expressly set forth in
this Agreement,  any term of this Agreement may be amended or terminated and the
observance  of any term of this  Agreement  may be waived  with  respect  to all
parties to this  Agreement  (either  generally or in a  particular  instance and
either retroactively or prospectively),  with the written consent of the Company
and the  holders  of at least 66 2/3% of the  shares of Common  Stock  issued or
issuable upon  conversion of the Shares.  Notwithstanding  the  foregoing,  this
Agreement may be amended or  terminated,  and any right  hereunder may be waived
with respect to all parties to this  Agreement,  with the consent of the Company
and the  holders  of less  than all of the  shares  of  Common  Stock  issued or
issuable  upon  conversion  of the Shares only in a manner which  applies to all
such holders in the same fashion. Any amendment,  termination or waiver effected
in  accordance  with this Section 11.11 shall be binding upon each holder of any
Shares  (including  shares of Common  Stock  into which  such  Shares  have been
converted),  even if they do not execute such consent, each future holder of all
such  securities  and the  Company.  No  waivers of or  exceptions  to any term,
condition or provision of this Agreement, in any one or more instances, shall be
deemed to be, or construed as, a further or continuing  waiver of any such term,
condition or provision.

                                       23
<PAGE>

     11.12 Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding  masculine,  feminine or neuter forms,
and the singular form of nouns and pronouns  shall include the plural,  and vice
versa.

     11.13 Counterparts; Facsimile Signatures. This Agreement may be executed in
any number of counterparts, each of which shall be deemed to be an original, and
all of which shall  constitute one and the same document.  This Agreement may be
executed by facsimile signatures.

     11.14 Section Headings. The section headings are for the convenience of the
parties and in no way alter,  modify,  amend, limit, or restrict the contractual
obligations of the parties.

     11.15 Third  Parties.  Nothing  expressed  or implied in this  Agreement is
intended,  or is to be  construed,  to confer  upon or give any person or entity
other than the parties  hereto any rights or remedies under or by reason of this
Agreement.

     11.16 Schedules and Exhibits.  The schedules and exhibits  attached to this
Agreement are  incorporated  herein and are to be part of this Agreement for all
purposes.

     11.17  Mutual  Efforts.  Each party shall use its  commercially  reasonable
efforts to obtain, at its expense, all waivers, permits, consents,  approvals or
other   authorizations   from   Governmental   Entities,   and  to  effect   all
registrations,  filings and notices with or to Governmental  Entities, as may be
required for such party to  consummate  the  transactions  contemplated  by this
Agreement and to otherwise  comply with all applicable  laws and  regulations in
connection  with  the  consummation  of the  transactions  contemplated  by this
Agreement. Without limiting the generality of the foregoing, each of the Parties
shall promptly file any  Notification and Report Forms and related material that
it may be required to file with the Federal Trade  Commission  and the Antitrust
Division of the United States Department of Justice under the  Hart-Scott-Rodino
Act, shall use commercially reasonable efforts to obtain an early termination of
the applicable waiting period, and shall make any further filings or information
submissions pursuant thereto that may be necessary, proper or advisable.

                                       24
<PAGE>

                   [Counterpart signature page to Series A
                         Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    STRATEGY.COM INCORPORATED

                                    By: /s/ Eric F. Brown
                                    ---------------------

                                    Name: Eric F. Brown
                                    -------------------

                                    Title: Chief Financial Officer
                                    ------------------------------

<PAGE>

                   [Counterpart signature page to Series A
                      Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    MICROSTRATEGY INCORPORATED

                                    By: /s/ Eric F. Brown
                                    ---------------------

                                    Name: Eric F. Brown
                                    -------------------

                                    Title: Chief Financial Officer
                                    ------------------------------
<PAGE>
                   [Counterpart signature page to Series A
                         Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    AETHER CAPITAL LLC

                                    By:   Aether Systems, Inc.
                                    --------------------------

                                    By: /s/ David S. Oros
                                    ---------------------

                                    Name: David S. Oros
                                    ---------------------

                                    Title:  Chief Executive Officer
                                    -------------------------------

<PAGE>

                   [Counterpart signature page to Series A
                         Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    SNOWDON LTD. PARTNERSHIP

                                    By:   Nevis LLC, its General Partner
                                    ------------------------------------

                                    By: /s/ David R. Wilmerding
                                    ---------------------------

                                    Name: David R. Wilmerding
                                    ---------------------------

                                    Title: President of Nevis LLC
                                    -----------------------------

<PAGE>
                   [Counterpart signature page to Series A
                         Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    VALHALLA CAPITAL L.P.

                                    By:   Valhalla Capital Management LLC
                                    -------------------------------------

                                    By: /s/ Nancy Casey
                                    -------------------

                                    Name:  Nancy Casey
                                    -------------------

                                    Title: Managing Member
                                    ----------------------

<PAGE>

                   [Counterpart signature page to Series A
                         Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    NEW VENTURE PARTNERS IV, L.P.

                                    By: /s/ Howard D. Wolfe, Jr.
                                    ----------------------------

                                    Name: Howard D. Wolfe, Jr.
                                    --------------------------

                                    Title: General Partner
                                    ----------------------

<PAGE>

                    [Counterpart signature page to Series A
                         Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    By: /s/ Jon C. Baker
                                    --------------------

                                    Name: Jon C. Baker
                                    --------------------

<PAGE>

                   [Counterpart signature page to Series A
                         Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    By: /s/ David R. Wilmerding III
                                    -------------------------------

                                    Name: David R. Wilmerding, III
                                    -------------------------------
<PAGE>

                   [Counterpart signature page to Series A
                         Preferred Stock Purchase Agreement]

      Executed as of the date first written above.

                                    By: /s/ Nancy Casey
                                    -------------------

                                    Name: Nancy Casey
                                    -------------------

                                    By: /s/ Arthur Marks
                                    --------------------

                                    Name: Art Marks
                                    --------------------
<PAGE>
                                       EXHIBIT A
                                       ---------

<TABLE>
                         Number of Shares to     Number of Shares to
                        be Purchased in First   be Purchased in Second      Aggregate
Name and Address              Closing                  Closing            Purchase Price

<S>                          <C>                       <C>                <C>
Aether Capital LLC           4,702,194                 3,134,796          $24,999,998.10
11460 Cronridge Drive
Owings Mills, MD 21117

Snowdon Ltd. Partnership     4,702,194                        --          $14,999,998.86
c/o Nevis Capital Management
1119 St. Paul Street
Baltimore, MD 21202

Jon C. Baker                 1,567,398                        --          $4,999,999.62
c/o Nevis Capital Management
1119 St. Paul Street
Baltimore, MD 21202

David R. Wilmerding, III     1,567,398                        --          $4,999,999.62
c/o Nevis Capital Management
1119 St. Paul Street
Baltimore, MD 21202

New Venture Partners IV, L.P.  470,219                        --          $1,499,998.61
Attn: Howard Wolfe
1119 St. Paul Street
Baltimore, MD 21202

Nancy Casey & Art Marks        313,480                        --          $1,000,001.20
10836 Pleasant Hill Drive
Potomac, MD 20854

Valhalla Capital L.P.           78,370                        --            $250,000.30
10836 Pleasant Hill Drive
Potomac, MD 20854

TOTAL:                      13,401,253                  3,134,796        $52,749,996.31
</TABLE>AMENDED AND RESTATED CERTIFICATE
                                      OF
                                 INCORPORATION
                                      OF
                           STRATEGY.COM INCORPORATED
                          --------------------------
  (Originally Incorporated on February 22, 2000 as Strategy.com Incorporated)

                                  ARTICLE ONE
                                     NAME

          The name of the corporation is Strategy.com Incorporated.

                                  ARTICLE TWO
                               REGISTERED OFFICE

     The address of the corporation's registered office in the State of
Delaware is Corporation Trust Center, 1209 Orange Street, in the City of
Wilmington, County of New Castle.  The name of the registered agent at such
address is The Corporation Trust Company.

                                 ARTICLE THREE
                                    PURPOSE

     The nature of the business or purposes to be conducted or promoted is to
engage in any lawful act for which corporations may be organized under the
General Corporation Law of Delaware.  The corporation shall possess and
exercise all the powers and privileges granted by the General Corporation Law
of the State of Delaware, by any other law or by this Certificate, together
with any powers incidental thereto as far as such powers and privileges are
necessary or convenient to the conduct, promotion, or attainment of the
purposes of the corporation.

                                 ARTICLE FOUR
                               CAPITAL STRUCTURE

     The total number of shares of capital stock which the corporation shall
have the authority to issue is 322,315,984 shares, consisting of three
classes of capital stock:

     (a) 190,431,973 shares of Class A Common Stock, par value $0.001 per
share (the "Class A Common Stock");

     (b) 84,000,000 shares of Class B Common Stock, par value $0.001 per
share (the "Class B Common Stock") (the Class A Common Stock and the Class B
Common Stock are collectively referred to as the "Common Stock"); and

  (c) 47,884,011 Series A Preferred Stock, par value $0.001 per share (the
"Series A Preferred Stock")

     At the effective time of this Amended and Restated Certificate of
Incorporation, each share of common stock of the corporation outstanding
immediately prior thereto shall be changed and converted, without any action
on the part of the holders hereof, into one share of Class B Common Stock.

                                       1
<PAGE>

                                 ARTICLE FIVE
                                 COMMON STOCK

      5.1  Identical Rights.  Except as otherwise set forth in this ARTICLE
FIVE, the rights and privileges of the Common Stock shall be identical,
including without limitation the right to participate ratably in dividends
and liquidation distributions.  The corporation may not make any dividend or
distribution with respect to any class of Common Stock unless at the same
time the corporation makes a ratable dividend or distribution with respect to
each outstanding share of Common Stock regardless of class.  In the case of
dividends or distributions payable in shares of a class of Common Stock, only
shares of Class A Common Stock may be distributed with respect to Class A
Common Stock and only shares of Class B Common Stock may be distributed with
respect to Class B Common Stock, and the number of shares of Common Stock
payable per share will be equal for each class.  In addition, neither the
shares of Class A Common Stock nor the shares of Class B Common Stock may be
subdivided, consolidated, reclassified or otherwise changed unless
concurrently the shares of the other class of Common Stock are subdivided,
consolidated, reclassified or otherwise changed in the same proportion and
the same manner.

      5.2  Voting Rights.  The holders of the Common Stock shall vote as a
single class on all matters submitted to a vote of the stockholders to which
the holders of Common Stock are entitled to vote, except as may be required
by Delaware law or as otherwise expressly specified
in this Certificate of Incorporation. Each share of Class A Common Stock
shall be entitled to one vote and each share of Class B Common Stock shall be
entitled to ten votes. The corporation, by action of its Board of Directors
and the affirmative vote of the holders of a majority of the voting power of
the capital stock of the corporation entitled to vote, may increase or
decrease the number of authorized shares of Common Stock of the corporation
(but not below the number of shares of Common Stock then outstanding)
irrespective of the provisions of Section 242(b)(2) of the General
Corporation Law of Delaware.

      5.3  Conversion Rights.

           (a)  Voluntary Conversion.  Each share of Class B Common Stock is
convertible into one share Class A Common Stock at any time at the option of
the holder.

           (b)  Automatic Conversion.     Each share of Class B Common Stock
shall convert automatically into one share of Class A Common Stock upon its
sale, assignment, gift or other transfer, other than a transfer approved in
advance of the effectiveness thereof by the holders of a majority of the
Class B Common Stock outstanding, voting separately as a class; provided,
however, that a transfer effected as a result of the death of the transferor
may be approved by the holders of a majority of the Class B Common Stock
outstanding, voting separately as a class, within thirty (30) days of such
transfer. For purposes of determining whether a transfer has been approved by
the holders of a majority of the Class B Common Stock outstanding, the shares
for which approval of the transfer is being sought shall continue to be
considered outstanding shares of Class B Common Stock and the proposed
transferor (or in the case of shares transferred as a result of the death of
the proposed tranferor, the Executor or similar personal representative of
such proposed transferor) shall be entitled to vote on such transfer.

          Notwithstanding the foregoing, (i) the provisions of this Section
5.3(b) shall not apply in the case of a merger or similar transaction by the
corporation in which all the outstanding shares of Common Stock of the
corporation regardless of class are purchased by the acquiror, and (ii) any
holder of Class B Common Stock may pledge his shares of Class B Common Stock
to a

                                       2
<PAGE>

financial institution (the "Pledgee") pursuant to a bona fide pledge of
such shares as collateral security for indebtedness due to the Pledgee;
provided that such shares remain subject to the provisions of this Section
5.3 and that, if the Pledgee forecloses or takes similar action, such pledged
shares of Class B Common Stock shall be converted automatically into shares
of Class A Common Stock as provided in this Section 5.3(b); provided,
however, that if within five business days after such foreclosure or similar
event such converted shares are returned to the pledgor, such shares shall be
converted automatically back into shares of Class B Common Stock.

      5.4  Unconverted Shares.  If less than all of the shares of Class B
Common
Stock evidenced by a certificate surrendered to the corporation (in
accordance with such procedures as the Board of Directors may determine) are
converted, the corporation shall execute and deliver to or upon the written
order of the holder of such certificate a new certificate evidencing the
number of shares of Class B Common Stock which are not converted without
charge to the holder.

      5.5  Reservation.  The corporation hereby reserves, and shall at all
times
reserve and keep available, out of its authorized and unissued shares of
Class A Common Stock, for the purposes of effecting conversions, such number
of duly authorized shares of Class A Common Stock as shall from time to time
be sufficient to effect the conversion of all outstanding shares of Class B
Common Stock.  The corporation covenants that all the shares of Class A
Common Stock so issuable shall, when so issued, be duly and validly issued,
fully paid and non- assessable.  The corporation shall take all such action
as may be necessary to assure that all such shares of Class A Common Stock
may be so issued without violation of any applicable law or regulation. The
corporation shall not take any action that results in any adjustment of the
conversion ratio if the total number of shares of Class A Common Stock issued
and issuable after such action upon conversion of the shares of Class B
Common Stock would exceed the total number of shares of Class A Common Stock
then authorized by the corporation's certificate of incorporation.

      5.6  Merger. Upon the merger or consolidation of the corporation,
holders of each class of Common Stock will be entitled to receive equal per
share payments or distributions, except that in any transaction in which
shares of capital stock are distributed to holders of Common Stock, the
shares of capital stock distributed to holders of Class A Common Stock and
Class B Common Stock may differ, but only to the extent that the Class A
Common Stock and the Class B Common Stock differ in this Certificate of
Incorporation.

      5.7  Liquidation.  Upon any dissolution or liquidation of the
corporation,
holders of Common Stock shall be entitled to receive ratably all assets of
the corporation available for distribution to stockholders.

                                  ARTICLE SIX
                                PREFERRED STOCK

SERIES A PREFERRED STOCK.

      The rights, preferences, powers, privileges and restrictions,
qualifications and limitations of the Series A Preferred Stock are as follows:

      1.   Dividends.

      (a)  The Corporation shall not declare or pay any cash dividends on
shares of

                                       3
<PAGE>

Common Stock until the holders of the Series A Preferred Stock then
outstanding shall have first received, or simultaneously receive, a cash
dividend on each outstanding share of Series A Preferred Stock in an amount
at least equal to the product of (i) the per share amount, if any, of the
dividends or other distributions to be declared, paid or set aside for the
Common Stock, multiplied by (ii) the number of whole shares of Common Stock
into which such share of Series A Preferred Stock is then convertible.

      (b)  The holders of shares of Series A Preferred Stock shall be entitled
to receive, out of funds legally available therefor, dividends of $0.2552 per
share per annum (subject to appropriate adjustment in the event of any stock
dividend, stock split, combination or other similar recapitalization
affecting such shares), payable when and as declared by the Board of
Directors of the Corporation.  Such dividends shall accrue and shall be
cumulative from the date of issuance of each share of Series A Preferred
Stock, whether or not declared.

      2.   Liquidation, Dissolution or Winding Up; Certain Mergers,
Consolidations and Asset Sales.

      (a)  In the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Corporation, the holders of shares of Series
A Preferred Stock then outstanding shall be entitled to be paid out of the
assets of the Corporation available for distribution to its stockholders,
before any payment shall be made to the holders of Common Stock or any other
class or series of stock ranking on liquidation junior to the Series A
Preferred Stock (such Common Stock and other stock being collectively
referred to as "Junior Stock") by reason of their ownership thereof, an
amount equal to $3.19 per share (subject to appropriate adjustment in the
event of any stock dividend, stock split, combination or other similar
recapitalization affecting such shares), plus any dividends accrued or
declared but unpaid thereon.  If upon any such liquidation, dissolution or
winding up of the Corporation the remaining assets of the Corporation
available for distribution to its stockholders shall be insufficient to pay
the holders of shares of Series A Preferred Stock the full amount to which
they shall be entitled, the holders of shares of Series A Preferred Stock and
any class or series of stock ranking on liquidation on a parity with the
Series A Preferred Stock shall share ratably in any distribution of the
remaining assets and funds of the Corporation in proportion to the respective
amounts which would otherwise be payable in respect of the shares held by
them upon such distribution if all amounts payable on or with respect to such
shares were paid in full. After the payment of all such preferential amounts
required to be paid to the holders of Series A Preferred Stock and any other
class or series of stock of the Corporation ranking on liquidation on a
parity with the Series A Preferred Stock, upon the dissolution, liquidation
or winding up of the Corporation, the remaining assets and funds of the
Corporation available for distribution to its stockholders shall be
distributed among the holders of shares of Series A Preferred Stock, Common
Stock and any other class or series of stock entitled to participate in
liquidation distributions with the holders of Common Stock, pro rata based on
the number of shares of Common Stock held by each (assuming conversion into
Common Stock of all such shares).  The amount per share of Series A Preferred
Stock determined pursuant to this clause (a) shall in no event exceed $6.38
(subject to appropriate adjustment in the event of any stock dividend, stock
split, combination or other similar recapitalization affecting such shares).

      (b)  Notwithstanding Subsection 2(a), in the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Corporation, the
holders of shares of Series A Preferred Stock then outstanding shall be
entitled to be paid out of the assets of the Corporation available for
distribution to its stockholders, the greater of (i) the amount determined
pursuant to Subsection 2(a) or (ii) an amount equal to the portion of the
assets of the Corporation remaining

                                       4
<PAGE>

for distribution to stockholders which such holder would have received if
each share of Series A Preferred Stock had been converted into the number of
shares of Common Stock issuable upon the conversion of a share of Series A
Convertible Preferred Stock immediately prior to any such liquidation,
dissolution or winding up of the Corporation after taking into account the
rights of holders of any other class or series of capital stock of the
Corporation (including Common Stock) entitled to share in such distribution in
either case.

      (c)  In the event of any merger or consolidation in which (i) the
Corporation is a constituent party or (ii) a subsidiary of the Corporation is
a constituent party and the Corporation issues shares of its capital stock
pursuant to such merger or consolidation (except any such merger or
consolidation involving the Corporation or a subsidiary in which the holders
of capital stock of the Corporation immediately prior to such merger or
consolidation continue to hold immediately following such merger or
consolidation more than 50% by voting power of the capital stock of (A) the
surviving or resulting corporation or (B) if the surviving or resulting
corporation is a wholly owned subsidiary of another corporation immediately
following such merger or consolidation, the parent corporation of such
surviving or resulting corporation), or sale of all or substantially all the
assets of the Corporation, if the holders of at least 66 2/3% of the then
outstanding shares of Series A Preferred Stock so elect by giving written
notice thereof to the Corporation at least three days before the effective
date of such event, then such merger, consolidation or asset sale shall be
deemed to be a liquidation of the Corporation for purposes of this Section 2,
and the agreement or plan of merger or consolidation with respect to such
merger, consolidation or sale shall provide that the consideration payable to
the stockholders of the Corporation (in the case of a merger or
consolidation), or consideration payable to the Corporation, together with
all other available assets of the Corporation (in the case of an asset sale),
shall be distributed to the holders of capital stock of the Corporation in
accordance with Subsections 2(a) and 2(b) above.  The amount deemed
distributed to the holders of Series A Preferred Stock upon any such merger,
consolidation or asset sale shall be the cash or the value of the property,
rights or securities distributed to such holders by the Corporation or the
acquiring person, firm or other entity.  The value of such property, rights
or other securities shall be determined in good faith by the Board of
Directors of the Corporation.

      3.   Voting.

      (a)  On any matter presented to the stockholders of the Corporation for
their action or consideration at any meeting of stockholders of the
Corporation (or by written action of stockholders in lieu of meeting), each
holder of outstanding shares of Series A Preferred Stock shall be entitled to
the number of votes equal to the number of whole shares of Common Stock into
which the shares of Series A Preferred Stock held by such holder are
convertible as of the record date for determining stockholders entitled to
vote on such matter.  Except as provided by law, by the provisions of
Subsection 3(b) below or by the provisions establishing any other series of
Preferred Stock, holders of Series A Preferred Stock and of any other
outstanding series of Preferred Stock shall vote together with the holders of
Common Stock as a single class.

      (b)  The approval (by vote or written consent, as provided by law) of
the holders of more than 50% of the outstanding shares of Series A Preferred
Stock, voting together as a single class shall be necessary for effecting or
validating the following actions:

           (A)  Any amendment, alteration, or repeal of any provision of this
Amended and Restated Certificate of Incorporation or the Bylaws of the
Corporation (including any filing of a Certificate of Designation) that could
adversely affect the holders of shares of Series A Preferred Stock, including
any such amendment (or similar effect that could occur by virtue of the

                                       5
<PAGE>

merger or consolidation of the Corporation) that does any of the following:

                (i)  increases or decreases the par value of the issued shares
of Series A Preferred Stock;

                (ii) changes issued shares of Series A Preferred Stock into a
lesser number of shares of the same class, or into the same or a different
number of shares of any other class, with  or without par value, theretofore
or then authorized

                (iii)changes the terms of, or adds terms to, the terms of the
Series A Preferred Stock in any manner that could adversely affect the
holders of such shares;;

                (iv) changes the terms of issued shares of any class senior,
junior or pari passu in any manner that could adversely affect the holders of
shares of Series A Preferred Stock;

                (v)  authorizes shares of another class that are convertible
into, or authorizes the conversion of shares of another class into, shares of
Series A Preferred Stock or authorizes the Board of Directors to fix or alter
conversion rights of shares of another class that are convertible into shares
of Series A Preferred Stock;

                (vi) provides, in the case of any amendment described in
3(b)(A)(i) or (ii), that the stated capital of the Corporation will be
reduced or eliminated as a result of the amendment, or provides in the case
of 3(b)(A)(v), that the stated capital of the Corporation will be reduced or
eliminated upon the exercise of such conversion rights; or

                (vii)changes substantially the purposes of the Corporation, or
provides that thereafter an amendment to the Amended and Restated Certificate
may be adopted that changes substantially the purposes of the Corporation; or

                (viii)    changes the Corporation into a nonprofit corporation

      (B)  Any authorization, designation, sale or issuance whether by
reclassification or otherwise, of any new class or series of stock or any
other securities convertible into equity securities of the Corporation
ranking senior to the Series A Preferred Stock in rights of voting,
redemption, liquidation preference, voting or dividends or any increase in
the authorized or designated number of any such new class or series;

      (C)  Any redemption, repurchase, payment of dividends or other
distributions with respect to any Junior Stock; or

      (D)  Any agreement by the Corporation or its shareholders effecting (i)
any sale, lease, assignment, transfer or other conveyance of all or
substantially all the assets or capital stock of the Corporation, (ii) any
merger into or with or consolidation with any other corporation where the
Corporation is not the surviving entity and where the stockholders of the
Corporation prior to such merger or consolidation do not hold more than 50%
of the voting power of the Corporation after such transaction, (iii) any
recapitalization, reclassification, reorganization or any similar transaction
with respect to any of its shares of capital stock in a manner which could
adversely affect the holders of Series A Preferred Stock, or (iv) any
transaction or series of related transactions in which more than 50% of the
voting power of the Corporation is disposed of.

                                       6
<PAGE>

      4.   Optional Conversion.  The holders of the Series A Preferred Stock
shall have conversion rights as follows (the "Conversion Rights"):

      (a)  Right to Convert.  Each share of Series A Preferred Stock shall be
convertible, at the option of the holder thereof, at any time and from time
to time, and without the payment of additional consideration by the holder
thereof, into such number of fully paid and nonassessable shares of Class A
Common Stock as is determined by dividing $3.19 by the Series A Conversion
Price (as defined below) in effect at the time of conversion.  The "Series A
Conversion Price" shall initially be $3.19.  Such initial Series A Conversion
Price, and the rate at which shares of Series A Preferred Stock may be
converted into shares of Class A Common Stock, shall be subject to adjustment
as provided below.

      In the event of a notice of redemption of any shares of Series A
Preferred Stock pursuant to Section 6 hereof, the Conversion Rights of the
shares designated for redemption shall terminate at the close of business on
the first full day preceding the date fixed for redemption, unless the
redemption price is not paid on such redemption date, in which case the
Conversion Rights for such shares shall continue until such price is paid in
full.  In the event of a liquidation of the Corporation, the Conversion
Rights shall terminate at the close of business on the first full day
preceding the date fixed for the payment of any amounts distributable on
liquidation to the holders of Series A Preferred Stock.

      (b)  Fractional Shares.  No fractional shares of Class A Common Stock
shall be issued upon conversion of the Series A Preferred Stock.  In lieu of
any fractional shares to which the holder would otherwise be entitled, the
Corporation shall pay cash equal to such fraction multiplied by the then
effective Series A Conversion Price.

      (c)  Mechanics of Conversion.

           (i)  In order for a holder of Series A Preferred Stock to convert
shares of Series A Preferred Stock into shares of Class A Common Stock, such
holder shall surrender the certificate or certificates for such shares of
Series A Preferred Stock, at the office of the transfer agent for the Series
A Preferred Stock (or at the principal office of the Corporation if the
Corporation serves as its own transfer agent), together with written notice
that such holder elects to convert all or any number of the shares of the
Series A Preferred Stock represented by such certificate or certificates.
Such notice shall state such holder's name or the names of the nominees in
which such holder wishes the certificate or certificates for shares of Class
A Common Stock to be issued.  If required by the Corporation, certificates
surrendered for conversion shall be endorsed or accompanied by a written
instrument or instruments of transfer, in form satisfactory to the
Corporation, duly executed by the registered holder or his or its attorney
duly authorized in writing.  The date of receipt of such certificates and
notice by the transfer agent (or by the Corporation if the Corporation serves
as its own transfer agent) shall be the conversion date ("Conversion Date"),
and the shares of Class A Common Stock issuable upon conversion of the shares
represented by such certificate shall be deemed to be outstanding of record
as of such date.  The Corporation shall, as soon as practicable after the
Conversion Date, issue and deliver at such office to such holder of Series A
Preferred Stock, or to his or its nominees, a certificate or certificates for
the number of shares of Class A Common Stock to which such holder shall be
entitled, together with cash in lieu of any fraction of a share.

           (ii) The Corporation shall at all times when the Series A Preferred
Stock shall be outstanding, reserve and keep available out of its authorized
but unissued stock, for the

                                       7
<PAGE>

purpose of effecting the conversion of the Series A Preferred Stock, such number
of its duly authorized shares of Class A Common Stock as shall from time to time
be sufficient to effect the conversion of all outstanding Series A Preferred
Stock. Before taking any action which would cause an adjustment reducing the
Series A Conversion Price below the then par value of the shares of Class A
Common Stock issuable upon conversion of the Series A Preferred Stock, the
Corporation will take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Corporation may validly and legally
issue fully paid and nonassessable shares of Class A Common Stock at such
adjusted Series A Conversion Price.

           (iii)Upon any such conversion, no adjustment to the Series A
Conversion Price shall be made for any accrued or declared but unpaid
dividends on the Series A Preferred Stock surrendered for conversion or on
the Class A Common Stock delivered upon conversion.

           (iv) All shares of Series A Preferred Stock which shall have been
surrendered for conversion as herein provided shall no longer be deemed to be
outstanding and all rights with respect to such shares, including the rights,
if any, to receive notices and to vote, shall immediately cease and terminate
on the Conversion Date, except only the right of the holders thereof to
receive shares of Class A Common Stock in exchange therefor and payment of
any dividends accrued or declared but unpaid thereon.  Any shares of Series A
Preferred Stock so converted shall be retired and cancelled and shall not be
reissued, and the Corporation (without the need for stockholder action) may
from time to time take such appropriate action as may be necessary to reduce
the authorized number of shares of Series A Preferred Stock accordingly.

           (v)  The Corporation shall pay any and all issue and other taxes
that may be payable in respect of any issuance or delivery of shares of Class
A Common Stock upon conversion of shares of Series A Preferred Stock pursuant
to this Section 4.  The Corporation shall not, however, be required to pay
any tax which may be payable in respect of any transfer involved in the
issuance and delivery of shares of Class A Common Stock in a name other than
that in which the shares of Series A Preferred Stock so converted were
registered, and no such issuance or delivery shall be made unless and until
the person or entity requesting such issuance has paid to the Corporation the
amount of any such tax or has established, to the satisfaction of the
Corporation, that such tax has been paid.

      (d)  Adjustments to Series A Conversion Price for Diluting Issues:

           (i)  Special Definitions.  For purposes of this Section 4, the
following definitions shall apply:

                (A)  "Option" shall mean rights, options or warrants to
subscribe for, purchase or otherwise acquire Class A Common Stock or
Convertible Securities.

                (B)   "Series A Original Issue Date" shall mean the date on
which a share of Series A Preferred Stock was first issued.

                (C)   "Convertible Securities" shall mean any evidences of
indebtedness, shares or other securities directly or indirectly convertible
into or exchangeable for Class A Common Stock, but excluding Options.

                (D)  "Additional Shares of Common Stock" shall mean all shares
of Common Stock issued (or, pursuant to Subsection 4(d)(iii) below, deemed to
be issued) by the Corporation after the Series A Original Issue Date, other
than:

                                       8
<PAGE>

                     (I)  shares of Common Stock issued or issuable upon
conversion or exchange of any Convertible Securities or exercise of any
Options outstanding on the Series A Original Issue Date;

                     (II)  shares of Common Stock issued or issuable as a
dividend or distribution on Series A Preferred Stock;

                     (III)     shares of Common Stock issued or issuable by
reason of a dividend, stock split, split-up or other distribution on shares
of Common Stock that is covered by Subsection 4(e) or 4(f) below; or

                     (IV)  up to 10,000,000 shares of Common Stock (or Options
with respect thereto) and such additional number of shares as may be approved
by the compensation committee of the Board of Directors of the Corporation,
issued or issuable to employees or directors of, or consultants to, the
Corporation, or any Corporation holding directly or indirectly more than 50%
by voting power of the capital stock of the Corporation, pursuant to a plan
or arrangement approved by the Board of Directors of the Corporation
(provided that any shares subject to Options that expire or terminate
unexercised shall not count towards the maximum number set forth in this
clause (IV)).

           (ii) No Adjustment of Series A Conversion Price.  No adjustment in
the Series A Conversion Price shall be made as the result of the issuance of
Additional Shares of Common Stock if:  (a) the consideration per share
(determined pursuant to Subsection 4(d)(v)) for such Additional Share of
Common Stock issued or deemed to be issued by the Corporation is equal to or
greater than the applicable Series A Conversion Price in effect immediately
prior to the issuance or deemed issuance of such Additional Shares, or (b)
prior to such issuance or deemed issuance, the Corporation receives written
notice from the holders of at least 66 2/3% of the then outstanding shares of
Series A Preferred Stock agreeing that no such adjustment shall be made as
the result of the issuance or deemed issuance of Additional Shares of Common
Stock.

           (iii)Issue of Securities Deemed Issue of Additional Shares of
Common Stock.  If the Corporation at any time or from time to time after the
Series A Original Issue Date shall issue any Options (excluding Options
covered by Subsection 4(d)(i)(D)(IV) above) or Convertible Securities or
shall fix a record date for the determination of holders of any class of
securities entitled to receive any such Options or Convertible Securities,
then the maximum number of shares of Common Stock (as set forth in the
instrument relating thereto without regard to any provision contained therein
for a subsequent adjustment of such number) issuable upon the exercise of
such Options or, in the case of Convertible Securities and Options therefor,
the conversion or exchange of such Convertible Securities, shall be deemed to
be Additional Shares of Common Stock issued as of the time of such issue or,
in case such a record date shall have been fixed, as of the close of business
on such record date, provided that Additional Shares of Common Stock shall
not be deemed to have been issued unless the consideration per share
(determined pursuant to Subsection 4(d)(v) hereof) of such Additional Shares
of Common Stock would be less than the applicable Series A Conversion Price
in effect on the date of and immediately prior to such issue, or such record
date, as the case may be, and provided further that in any such case in which
Additional Shares of Common Stock are deemed to be issued:

                (A)  No further adjustment in the Series A Conversion Price
shall be made upon the subsequent issue of Convertible Securities or shares
of Common Stock upon the exercise of such Options or conversion or exchange
of such Convertible Securities;

                                       9
<PAGE>

                (B)  If such Options or Convertible Securities by their terms
provide, with the passage of time or otherwise, for any increase or decrease
in the consideration payable to the Corporation, then upon the exercise,
conversion or exchange thereof, the Series A Conversion Price computed upon
the original issue thereof (or upon the occurrence of a record date with
respect thereto), and any subsequent adjustments based thereon, shall, upon
any such increase or decrease becoming effective, be recomputed to reflect
such increase or decrease insofar as it affects such Options or the rights of
conversion or exchange under such Convertible Securities;

                (C)  Upon the expiration or termination of any such
unexercised Option or unconverted Convertible Security, the Series A
Conversion Price shall not be readjusted, but the Additional Shares of Common
Stock deemed issued as the result of the original issue of such Option or
Convertible Security shall not be deemed issued for the purposes of any
subsequent adjustment of the Series A Conversion Price;

                (D)   In the event of any change in the number of shares of
Common Stock issuable upon the exercise, conversion or exchange of any such
Option or Convertible Security, including, but not limited to, a change
resulting from the anti-dilution provisions thereof, the Series A Conversion
Price then in effect shall forthwith be readjusted to such Series A
Conversion Price as would have obtained had the adjustment which was made
upon the issuance of such Option or Convertible Security not exercised,
converted or exchanged prior to such change been made upon the basis of such
change; and

                (E)  No readjustment pursuant to clause (B) or (D) above shall
have the effect of increasing the Series A Conversion Price to an amount
which exceeds the lower of (i) the Series A Conversion Price on the original
adjustment date, or (ii) the Series A Conversion Price that would have
resulted from any issuances of Additional Shares of Common Stock between the
original adjustment date and such readjustment date.

      In the event the Corporation, after the Series A Original Issue Date,
amends the terms of any such Options or Convertible Securities (whether such
Options or Convertible Securities were outstanding on the Series A Original
Issue Date or were issued after the Series A Original Issue Date), then such
Options or Convertible Securities, as so amended, shall be deemed to have
been issued after the Series A Original Issue Date and the provisions of this
Subsection 4(d)(iii) shall apply.

           (iv) Adjustment of Series A Conversion Price Upon Issuance of
Additional Shares of Common Stock.

      In the event the Corporation shall at any time after the Series A
Original Issue Date issue Additional Shares of Common Stock (including
Additional Shares of Common Stock deemed to be issued pursuant to Subsection
4(d)(iii)), without consideration or for a consideration per share less than
the applicable Series A Conversion Price in effect immediately prior to such
issue, then and in such event, such Series A Conversion Price shall be
reduced, concurrently with such issue, to a price (calculated to the nearest
cent) determined by multiplying such Series A Conversion Price by a fraction,
(A) the numerator of which shall be (1) the number of shares of Common Stock
outstanding immediately prior to such issue plus (2) the number of shares of
Common Stock which the aggregate consideration received or to be received by
the Corporation for the total number of Additional Shares of Common Stock so
issued would purchase at such Series A Conversion Price; and (B) the
denominator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issue plus the number of such
Additional Shares of

                                       10
<PAGE>

Common Stock so issued; provided that, (i) for the purpose of this Subsection
4(d)(iv), all shares of Common Stock issuable upon conversion or exchange of
Convertible Securities outstanding immediately prior to such issue shall be
deemed to be outstanding, and (ii) the number of shares of Common Stock deemed
issuable upon conversion or exchange of such outstanding Convertible Securities
shall not give effect to any adjustments to the conversion or exchange price or
conversion or exchange rate of such Convertible Securities resulting from the
issuance of Additional Shares of Common Stock that is the subject of this
calculation.

           (v)  Determination of Consideration.  For purposes of this
Subsection 4(d), the consideration received by the Corporation for the issue
of any Additional Shares of Common Stock shall be computed as follows:

                (A)  Cash and Property:  Such consideration shall:

                     (I)   insofar as it consists of cash, be computed at the
aggregate of cash received by the Corporation, excluding amounts paid or
payable for accrued interest or dividends;

                     (II) insofar as it consists of property other than cash,
be computed at the fair market value thereof at the time of such issue, as
determined in good faith by the Board of Directors; and

                     (III) in the event Additional Shares of Common Stock are
issued together with other shares or securities or other assets of the
Corporation for consideration which covers both, be the proportion of such
consideration so received, computed as provided in clauses (I) and (II)
above, as determined in good faith by the Board of Directors.

                (B)  Options and Convertible Securities.  The consideration
per share received by the Corporation for Additional Shares of Common Stock
deemed to have been issued pursuant to Subsection 4(d)(iii), relating to
Options and Convertible Securities, shall be determined by dividing

                     (x)  the total amount, if any, received or receivable by
the Corporation as consideration for the issue of such Options or Convertible
Securities, plus the minimum aggregate amount of additional consideration (as
set forth in the instruments relating thereto, without regard to any
provision contained therein for a subsequent adjustment of such
consideration) payable to the Corporation upon the exercise of such Options
or the conversion or exchange of such Convertible Securities, or in the case
of Options for Convertible Securities, the exercise of such Options for
Convertible Securities and the conversion or exchange of such Convertible
Securities, by

                     (y)  the maximum number of shares of Common Stock (as set
forth in the instruments relating thereto, without regard to any provision
contained therein for a subsequent adjustment of such number) issuable upon
the exercise of such Options or the conversion or exchange of such
Convertible Securities.

           (vi) Multiple Closing Dates.  In the event the Corporation shall
issue on more than one date Additional Shares of Common Stock which are
comprised of shares of the same series or class of Preferred Stock, and such
issuance dates occur within a period of no more than 120 days, then, upon the
final such issuance, the Series A Conversion Price shall be readjusted to give
effect to all such issuances as if they occurred on the date of the final such
issuance (and

                                       11
<PAGE>

without giving effect to any adjustments as a result of such prior issuances
within such period). (e) Adjustment for Stock Splits and Combinations. If the
Corporation shall at any time or from time to time after the Series A Original
Issue Date effect a subdivision of the outstanding Common Stock, the Series A
Conversion Price then in effect immediately before that subdivision shall be
proportionately decreased. If the Corporation shall at any time or from time to
time after the Series A Original Issue Date combine the outstanding shares of
Common Stock, the Series A Conversion Price then in effect immediately before
the combination shall be proportionately increased. Any adjustment under this
paragraph shall become effective at the close of business on the date the
subdivision or combination becomes effective.

      (f)  Adjustment for Certain Dividends and Distributions.  In the event
the Corporation at any time, or from time to time after the Series A Original
Issue Date shall make or issue, or fix a record date for the determination of
holders of Common Stock entitled to receive, a dividend or other distribution
payable in additional shares of Common Stock, then and in each such event the
Series A Conversion Price then in effect immediately before such event shall
be decreased as of the time of such issuance or, in the event such a record
date shall have been fixed, as of the close of business on such record date,
by multiplying the Series A Conversion Price then in effect by a fraction:

           (1)  the numerator of which shall be the total number of shares of
Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date, and

           (2)  the denominator of which shall be the total number of shares
of Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date plus the number of
shares of Common Stock issuable in payment of such dividend or distribution;
provided, however, if such record date shall have been fixed and such
dividend is not fully paid or if such distribution is not fully made on the
date fixed therefor, the Series A Conversion Price shall be recomputed
accordingly as of the close of business on such record date and thereafter
the Series A Conversion Price shall be adjusted pursuant to this paragraph as
of the time of actual payment of such dividends or distributions; and
provided further, however, that no such adjustment shall be made if the
holders of Series A Preferred Stock simultaneously receive (i) a dividend or
other distribution of shares of Common Stock in a number equal to the number
of shares of Common Stock as they would have received if all outstanding
shares of Series A Preferred Stock had been converted into Common Stock on
the date of such event or (ii) a dividend or other distribution of shares of
Series A Preferred Stock which are convertible, as of the date of such event,
into such number of shares of Common Stock as is equal to the number of
additional shares of Common Stock being issued with respect to each share of
Common Stock in such dividend or distribution.

      (g)  Adjustments for Other Dividends and Distributions.  In the event
the Corporation at any time or from time to time after the Series A Original
Issue Date shall make or issue, or fix a record date for the determination of
holders of Common Stock entitled to receive, a dividend or other distribution
payable in securities of the Corporation (other than shares of Common Stock)
or in cash or other property (other than cash out of earnings or earned
surplus, determined in accordance with generally accepted accounting
principles), then and in each such event provision shall be made so that the
holders of the Series A Preferred Stock shall receive upon conversion thereof
in addition to the number of shares of Common Stock receivable thereupon, the
kind and amount of securities of the Corporation, cash or other property
which they would have been entitled to receive had the Series A Preferred
Stock been converted into Common Stock on the date of such event and had they
thereafter, during the period from the date of such event to and

                                       12
<PAGE>

including the conversion date, retained such securities receivable by them as
aforesaid during such period, giving application to all adjustments called for
during such period under this paragraph with respect to the rights of the
holders of the Series A Preferred Stock; provided, however, that no such
adjustment shall be made if the holders of Series A Preferred Stock
simultaneously receive a dividend or other distribution of such securities, cash
or other property in an amount equal to the amount of such securities as they
would have received if all outstanding shares of Series A Preferred Stock had
been converted into Common Stock on the date of such event.

      (h)  Adjustment for Merger or Reorganization, etc.  Subject to the
provisions of Subsection 2(c), if there shall occur any reorganization,
recapitalization, consolidation or merger involving the Corporation in which
the Common Stock (but not the Series A Preferred Stock) is converted into or
exchanged for securities, cash or other property (other than a transaction
covered by paragraphs (e), (f) or (g) of this Section 4), then, following any
such reorganization, recapitalization, consolidation or merger, each share of
Series A Preferred Stock shall be convertible into the kind and amount of
securities, cash or other property which a holder of the number of shares of
Common Stock of the Corporation issuable upon conversion of one share of
Series A Preferred Stock immediately prior to such reorganization,
recapitalization, consolidation or merger would have been entitled to receive
pursuant to such transaction; and, in such case, appropriate adjustment (as
determined in good faith by the Board of Directors) shall be made in the
application of the provisions in this Section 4 set forth with respect to the
rights and interest thereafter of the holders of the Series A Preferred
Stock, to the end that the provisions set forth in this Section 4 (including
provisions with respect to changes in and other adjustments of the Series A
Conversion Price) shall thereafter be applicable, as nearly as reasonably may
be, in relation to any shares of stock or other property thereafter
deliverable upon the conversion of the Series A Preferred Stock.

      (i)  No Impairment.  The Corporation will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or
any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed hereunder by the
Corporation, but will at all times in good faith assist in the carrying out
of all the provisions of this Section 4 and in the taking of all such action
as may be necessary or appropriate in order to protect the Conversion Rights
of the holders of the Series A Preferred Stock against impairment.

      (j)  Certificate as to Adjustments.  Upon the occurrence of each
adjustment or readjustment of the Series A Conversion Price pursuant to this
Section 4, the Corporation at its expense shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and furnish to
each holder of Series A Preferred Stock a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based.  The Corporation shall, upon the written
request at any time of any holder of Series A Preferred Stock, furnish or
cause to be furnished to such holder a certificate setting forth (i) the
Series A Conversion Price then in effect, and (ii) the number of shares of
Common Stock and the amount, if any, of other securities, cash or property
which then would be received upon the conversion of Series A Preferred Stock.

      (k)  Notice of Record Date.  In the event:

           (i)  the Corporation shall take a record of the holders of its
Common Stock (or other stock or securities at the time issuable upon
conversion of the Series A Preferred Stock) for the purpose of entitling or
enabling them to receive any dividend or other distribution, or to

                                       13
<PAGE>

receive any right to subscribe for or purchase any shares of stock of any class
or any other securities, or to receive any other right; or

           (ii) of any capital reorganization of the Corporation, any
reclassification of the Common Stock of the Corporation, any consolidation or
merger of the Corporation with or into another corporation (other than a
consolidation or merger in which the Corporation is the surviving entity and
its Common Stock is not converted into or exchanged for any other securities
or property), or any transfer of all or substantially all of the assets of
the Corporation; or

           (iii)of the voluntary or involuntary dissolution, liquidation or
winding-up of the Corporation,

then, and in each such case, the Corporation will mail or cause to be mailed
to the holders of the Series A Preferred Stock a notice specifying, as the
case may be, (i) the record date for such dividend, distribution or right,
and the amount and character of such dividend, distribution or right, or (ii)
the effective date on which such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation or winding-up is to
take place, and the time, if any is to be fixed, as of which the holders of
record of Common Stock (or such other stock or securities at the time
issuable upon the conversion of the Series A Preferred Stock) shall be
entitled to exchange their shares of Common Stock (or such other stock or
securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up.  Such notice shall be mailed at least
10 days prior to the record date or effective date for the event specified in
such notice.

      5.   Mandatory Conversion.

           (a)  Upon the closing of the sale of shares of Class A Common
Stock, at a price to the public of at least $10.00 per share (subject to
appropriate adjustment for stock splits, stock dividends, combinations and
other similar recapitalizations affecting such shares), in a firm-commitment
underwritten public offering pursuant to an effective registration statement
under the Securities Act of 1933, as amended, resulting in at least
$30,000,000 of net proceeds to the Corporation (the "Mandatory Conversion
Date"), (i) all outstanding shares of Series A Preferred Stock shall
automatically be converted into shares of Class A Common Stock, at the then
effective conversion rate and (ii) the number of authorized shares of
Preferred Stock shall be automatically reduced by the number of shares of
Preferred Stock that had been designated as Series A Preferred Stock, and all
provisions included under the caption "Series A Preferred Stock", and all
references to the Series A Preferred Stock, shall be deleted and shall be of
no further force or effect.

           (b)  All holders of record of shares of Series A Preferred Stock
shall be given written notice of the Mandatory Conversion Date and the place
designated for mandatory conversion of all such shares of Series A Preferred
Stock pursuant to this Section 5. Such notice need not be given in advance of
the occurrence of the Mandatory Conversion Date. Such notice shall be sent by
first class or registered mail, postage prepaid, to each record holder of Series
A Preferred Stock at such holder's address last shown on the records of the
transfer agent for the Series A Preferred Stock (or the records of the
Corporation, if it serves as its own transfer agent). Upon receipt of such
notice, each holder of shares of Series A Preferred Stock shall surrender his or
its certificate or certificates for all such shares to the Corporation at the
place designated in such notice, and shall thereafter receive certificates for
the number of shares of Class A Common Stock to which such holder is entitled
pursuant to this Section 5. On the Mandatory Conversion Date, all outstanding
shares of Series A Preferred Stock shall be deemed to have been converted

                                       14
<PAGE>

into shares of Class A Common Stock, which shall be deemed to be outstanding of
record, and all rights with respect to the Series A Preferred Stock so
converted, including the rights, if any, to receive notices and vote (other than
as a holder of Class A Common Stock) will terminate, except only the rights of
the holders thereof, upon surrender of their certificate or certificates
therefor, to receive certificates for the number of shares of Class A Common
Stock into which such Series A Preferred Stock has been converted, and payment
of any accrued or declared but unpaid dividends thereon. If so required by the
Corporation, certificates surrendered for conversion shall be endorsed or
accompanied by written instrument or instruments of transfer, in form
satisfactory to the Corporation, duly executed by the registered holder or by
his or its attorney duly authorized in writing. As soon as practicable after the
Mandatory Conversion Date and the surrender of the certificate or certificates
for Series A Preferred Stock, the Corporation shall cause to be issued and
delivered to such holder, or on his or its written order, a certificate or
certificates for the number of full shares of Class A Common Stock issuable on
such conversion in accordance with the provisions hereof and cash as provided in
Subsection 4(b) in respect of any fraction of a share of Class A Common Stock
otherwise issuable upon such conversion.

           (c)  All certificates evidencing shares of Series A Preferred Stock
which are required to be surrendered for conversion in accordance with the
provisions hereof shall, from and after the Mandatory Conversion Date, be
deemed to have been retired and cancelled and the shares of Series A
Preferred Stock represented thereby converted into Class A Common Stock for
all purposes, notwithstanding the failure of the holder or holders thereof to
surrender such certificates on or prior to such date.  Such converted Series
A Preferred Stock may not be reissued, and the Corporation may thereafter
take such appropriate action (without the need for stockholder action) as may
be necessary to reduce the authorized number of shares of Series A Preferred
Stock accordingly.

      6.   Redemption.

           (a)  The Corporation will, subject to the conditions set forth
below, on October 17, 2005 and on each of the first and second anniversaries
thereof (each such date being referred to hereinafter as a "Mandatory
Redemption Date"), upon receipt not less than 60 nor more than 120 days prior
to the applicable Mandatory Redemption Date of written request(s) for
redemption from holders of at least 66 2/3% of the shares of Series A
Preferred Stock then outstanding (an "Initial Redemption Request"), redeem
from each holder of shares of Series A Preferred Stock that requests
redemption pursuant to the Initial Redemption Request or pursuant to a
subsequent election made in accordance with Section 6(b) below (a "Requesting
Holder"), at a price equal to $3.19 per share, plus any dividends accrued or
declared but unpaid thereon, subject to appropriate adjustment in the event
of any stock dividend, stock split, combination or other similar
recapitalization affecting such shares (the "Mandatory Redemption Price"),
the number of shares of Series A Preferred Stock requested to be redeemed by
each Requesting Holder, but not more than the following respective portions
of the number of shares of Series A Preferred Stock held by such Requesting
Holder on the applicable Mandatory Redemption Date.

                                       15
<PAGE>

                                                Maximum
                  Mandatory          Portion of Shares of Series A
               Redemption Date      Preferred Stock To Be Redeemed
               October 17, 2005                   33%
               October 17, 2006                   50%
               October 17, 2007        All outstanding shares of
                                       Series A Preferred Stock

           (b)  The Corporation shall provide notice of its receipt of an
Initial Redemption Request, specifying the time, manner and place of
redemption and the Mandatory Redemption Price (a "Redemption Notice"), by
first class or registered mail, postage prepaid, to each holder of record of
Series A Preferred Stock at the address for such holder last shown on the
records of the transfer agent therefor (or the records of the Corporation, if
it serves as its own transfer agent), not less than 45 days prior to the
applicable Mandatory Redemption Date.  Each holder of Series A Preferred
Stock (other than a holder who has made the Initial Redemption Request) may
elect to become a Requesting Holder on such Mandatory Redemption Date by so
indicating in a written notice mailed to the Company, by first class or
registered mail, postage prepaid, at least 30 days prior to the applicable
Mandatory Redemption Date.  Except as provided in Section 6(c) below, each
Requesting Holder shall surrender to the Corporation on the applicable
Mandatory Redemption Date the certificate(s) representing the shares to be
redeemed on such date, in the manner and at the place designated in the
Redemption Notice.  Thereupon, the Mandatory Redemption Price shall be paid
to the order of each such Requesting Holder and each certificate surrendered
for redemption shall be cancelled.

           (c)  If the funds of the Corporation legally available for
redemption of Series A Preferred Stock on any Mandatory Redemption Date are
insufficient to redeem the number of shares of Series A Preferred Stock
required under this Section 6 to be redeemed on such date from Requesting
Holders, those funds which are legally available will be used to redeem the
maximum possible number of such shares of Series A Preferred Stock ratably on
the basis of the number of shares of Series A Preferred Stock which would be
redeemed on such date if the funds of the Corporation legally available
therefor had been sufficient to redeem all shares of Series A Preferred Stock
required to be redeemed on such date.  At any time thereafter when additional
funds of the Corporation become legally available for the redemption of
Series A Preferred Stock, such funds will be used, at the end of the next
succeeding fiscal quarter, to redeem the balance of the shares which the
Corporation was theretofore obligated to redeem, ratably on the basis set
forth in the preceding sentence.

           (d)  Unless there shall have been a failure to pay the Mandatory
Redemption Price, on the Mandatory Redemption Date all rights of the holder
of each share redeemed on such date as a stockholder of the Corporation by
reason of the ownership of such share will cease, except the right to receive
the Mandatory Redemption Price of such share, without interest, upon
presentation and surrender of the certificate representing such share, and
such share will not from and after such Mandatory Redemption Date be deemed
to be outstanding.

           (e)  Any Series A Preferred Stock redeemed pursuant to this Section
6 will be cancelled and will not under any circumstances be reissued, sold or
transferred and the Corporation may from time to time take such appropriate
action as may be necessary to reduce the authorized Series A Preferred Stock
accordingly.

      7.   Right of First Refusal.

                                       16
<PAGE>

      No stockholder of the Corporation shall sell, assign, pledge or
otherwise transfer (collectively, "transfer") to (x) any party which the
Board of Directors reasonably determines to be a competitor of the
Corporation or of MicroStrategy Incorporated, or (y) any party set forth on
Exhibit I of that certain Series A Preferred Stock Purchase Agreement by and
among the Corporation and the individuals and entities listed on Exhibit A
thereto, dated as of October 17, 2000 (each, a "Prohibited Transferee"), any
of shares of Series A Preferred Stock of the Corporation or any right or
interest therein, whether voluntarily or by operation of law, or by gift or
otherwise, except by a transfer which meets the following requirements:

      (a)  If any stockholder (the "Selling Stockholder") proposes to transfer
any shares of Series A Preferred Stock of the Corporation (the "Offered
Shares") to a Prohibited Transferee, then the Selling Stockholder shall first
give written notice of the proposed transfer (the "Transfer Notice") to the
Corporation.  The Transfer Notice shall name the proposed transferee and
state the number of Offered Shares, the price per share and all other
material terms and conditions of the transfer.

      (b)  For 15 days following its receipt of such Transfer Notice, the
Corporation shall have the option to purchase all or any lesser part of the
Offered Shares at the price and upon the terms set forth in the Transfer
Notice.  In the event the Corporation elects to purchase all of the Offered
Shares, it shall give written notice of its election to the Selling
Stockholder within such 15-day period and the settlement of the sale of such
Offered Shares shall be made as provided below in Subsection (d).

      (c)  If the Corporation does not elect to acquire all of the Offered
Shares, the Corporation shall, within 15 days after receipt of the Transfer
Notice, give written notice of its decision to MicroStrategy Incorporated, a
Delaware corporation ("MSTR") and the holders of shares of Series A Preferred
Stock then outstanding (collectively with MSTR, the "Eligible
Stockholders").  Such notice shall state the number of Offered Shares
available for purchase.  Each Eligible Stockholder shall be entitled to
purchase that proportion of the Offered Shares available for purchase as the
number of shares of Common Stock owned by him bears to the total number of
issued and outstanding shares of Common Stock of the Corporation then owned
by all Eligible Stockholders.  For this purpose, any shares of Preferred
Stock or Class B Common Stock of the Corporation then outstanding shall be
treated as if converted into the number of shares of Class A Common Stock
into which such shares may then be converted.  Within ten days after mailing
of such notice to the Eligible Stockholders, each Eligible Stockholder shall
give written notice to the Corporation and the Selling Stockholder stating
how many shares of his pro rata allotment he will purchase and how many
additional shares he will purchase if additional Offered Shares are made
available.  If an Eligible Stockholder fails to respond in writing within
this ten-day period to the notice given by the Corporation, the right of such
Eligible Stockholder to acquire his proportionate part of the Offered Shares
of the Selling Stockholder shall terminate.  If one or more Eligible
Stockholders do not elect to acquire his full pro rata shares of the Offered
Shares available, these Offered Shares shall be allocated to each other
Eligible Stockholder in proportion to the respective number of additional
shares which Eligible Stockholders indicated they would purchase.  If any
Eligible Stockholder is thereby given the right to purchase a greater number
of Offered Shares than he has subscribed for, the excess shall be reallocated
to the other Eligible Stockholders on the same proportionate basis described
above.  The Corporation shall allocate and reallocate the shares available
according to this procedure, but it shall have discretion to allocate amounts
of less than 100 shares as it sees fit in its sole discretion.  All
allocations and reallocations pursuant to this Subsection (c) must be
completed within 14 days after the end of the ten-day period referred to
above.

                                       17
<PAGE>

      (d)  If the Corporation and/or Eligible Stockholders elect to acquire
all or any portion of the Offered Shares, the Corporation shall so notify the
Selling Stockholder and settlement shall be made at the principal office of
the Corporation in cash within 30 days after the Corporation receives the
Transfer Notice; provided that if the terms of payment set forth in the
Transfer Notice were other than cash against delivery, the Corporation and/or
the Eligible Stockholders shall pay for the Offered Shares on the same terms
and conditions set forth in the Transfer Notice.

      (e)  If the Corporation and/or the Eligible Stockholders do not elect to
acquire all of the Offered Shares, the Selling Stockholder may, within the
90-day period following the expiration of the option rights granted to the
Corporation and the Eligible Stockholders, transfer the remaining Offered
Shares to the proposed transferee or any other purchaser, provided that this
sale shall not be on terms and conditions more favorable to the purchaser
than those contained in the Transfer Notice.  Notwithstanding any of the
above, all Offered Shares transferred pursuant to this Section shall be
subject to the provisions of this Section in the same manner and to the same
extent as before the transfer.

      (f)  The following transactions shall be exempt from the provisions of
this Section:

           (1)  A stockholder's transfer of any or all of his shares either
during his lifetime or on death by will or intestacy to his immediate family
or to a trust the beneficiaries of which are exclusively one or more of the
stockholder and a member or members of the stockholder's immediate family.
"Immediate family" shall mean spouse, lineal descendant, father, mother,
brother or sister of the stockholder making the transfer;

           (2)  A stockholder's bona fide pledge or mortgage of his shares
with a commercial lending institution, including any pledge in which record
ownership is transferred to such financial institution and any foreclosure or
other exercise of creditors' rights pursuant to such pledge;

           (3)  A corporate stockholder's transfer of any or all of its shares
pursuant to and in accordance with the terms of any merger, consolidation,
reclassification of shares or capital reorganization of the corporate
stockholder, or pursuant to a sale of substantially all of the stock or
assets of a corporate stockholder;

           (4)  A corporate stockholder's transfer of any or all of its shares
to any or all of its stockholders;

           (5)  A transfer by a stockholder which is a partnership to any or
all of its partners or retired partners, or to the estate of any partner or
retired partner;

           (6)  A transfer pursuant to an agreement among the stockholder and
other stockholder(s) of the Corporation providing for "take-me-along" or
"co-sale" rights or any stock restriction agreement between the stockholder
and the Corporation;

           (7)  A transfer to a person who is already a stockholder of the
Corporation;

           (8)  A transfer to the guardian or conservator of the stockholder;

           (9)  Any transfer pursuant to an effective registration statement
filed by the Corporation with the Securities and Exchange Commission;

                                       18
<PAGE>

provided, however, that in any such case, except as otherwise provided in
Subsection (l) below, the transferee, assignee, pledgee, mortgagee or other
recipient shall receive and hold such stock subject to the provisions of this
Section and there shall be no further transfer of such stock except in
accordance with this Section.

      (g)  A stockholder of the Corporation shall be deemed to have given a
Transfer Notice to the Corporation and to have offered to sell all of the
shares of stock of the Corporation then held by such stockholder:

           (1)  if such stockholder dies and as a result any transfer of stock
is to be made other than as permitted by Subsection (f)(1) above;

           (2)  if such stockholder applies for or consents to the appointment
of a custodian, receiver, trustees or liquidator of any of his properties;

           (3)  if such stockholder admits in writing his inability to pay his
debts as they mature;

           (4)  if there is a dissolution, termination of existence,
liquidation, insolvency or business failure of the stockholder;

           (5)  if there is a composition or an assignment or trust mortgage
for the benefit of creditors by the stockholder;

           (6)  upon the commencement by or against the stockholder of any
proceeding under the United States Bankruptcy Code or any other federal or
state bankruptcy, reorganization, receivership, insolvency or other similar
law affecting the rights of creditors generally; or

           (7)  if that stockholder's shares are subject to (i) attachment or
execution of a judgment or (ii) any other transfer by court order, operation
of law, by gift or otherwise without consideration (other than pursuant to
Subsection (f)).

      If any offer is deemed to have been made under this Subsection (g), the
Corporation and/or the Eligible Stockholders may elect to purchase all or any
portion of such Offered Shares, and the price to be paid by the Corporation
and/or the Eligible Stockholders for the Offered Shares so deemed to be offered
shall be, if the Board of Directors shall in good faith have established at any
time within the 13 months preceding the date of purchase a fair market value for
such stock (including without limitation a valuation established as the purchase
or exercise price under an employee stock purchase or stock option plan which
requires that the purchase or exercise price be at fair market value, a
valuation established by an arm's-length sale of such stock by the Corporation,
or a valuation established specifically for purposes of this Section), the most
recent valuation for such stock established by the Board of Directors. If the
parties do not agree with the price set by the Board of Directors, then the
price shall be the fair market value of such shares as determined by an
appraiser mutually satisfactory to the Corporation and the Selling Stockholder
deemed to be making such offer or his successors-in-interest, or, if they cannot
agree on a single appraiser, by an appraiser appointed by the Corporation, a
second appraiser appointed by such Selling Stockholder or his
successors-in-interest and a third appraiser appointed by the other two
appraisers. Each party shall bear the cost of his or its own appraiser, and the
cost of the third appraiser shall be shared equally by the parties. If the
shares are not purchased by the Corporation and/or the Eligible Stockholders but
are transferred to other parties, the transferee

                                       19
<PAGE>

shall hold such stock subject to the provisions of this Section and there shall
be no further transfer of such stock except in accordance with this Section.

      (h)  The Corporation may assign its rights to purchase stock in any
particular transaction under this Section to one or more persons or entities.

      (i)  MSTR may assign its rights to purchase stock in any particular
transaction under this Section to one or more persons or entities.

      (j)  Any sale or transfer, or purported sale or transfer, of securities
of the Corporation shall be null and void unless the terms, conditions and
provisions of this Section are strictly observed and followed.

      (k)  The foregoing right of first refusal shall terminate upon either of
the following dates, whichever shall first occur:

           (1)  Upon the closing of the first public offering of securities of
the Corporation which is effected pursuant to a registration statement filed
with, and declared effective by, the Securities and Exchange Commission under
the Securities Act of 1933, as amended (other than an offering registered on
Form S-4, Form S-8 or any successor forms) that results in aggregate gross
proceeds to the Corporation (aggregate sales price to the public less
underwriters' discounts) of at least $30,000,000 with a net sales price per
share (gross sales price per share to the public less underwriters'
discounts) of not less than $10.00; or

           (2)  upon the sale of all or substantially all of the shares or
business of the Corporation, by merger, consolidation, sale of assets or
otherwise.

      (l)  The certificates representing shares of stock of the Corporation
shall bear a legend substantially in the following form (in addition to, or
in combination with, any legend required by applicable federal and state
securities laws and agreements relating to the transfer of the Corporation's
securities):

           "The shares represented by this certificate are subject to
           a right of first refusal in favor of the Corporation and
           certain stockholders, as provided in the Certificate of
           Incorporation of the Corporation."

      (m)  Whenever the neuter, masculine or feminine gender or the plural or
singular number is used herein, it shall be deemed to represent whatever
gender or number the context or circumstances require.

      (n)  Any notice hereunder shall be in writing and shall be deemed to
have been duly given when mailed by first class mail, or delivered by hand,
(i) if to the Corporation, to its principal executive office, attention:
President; and (ii) if to a stockholder, to the address of the stockholder
listed in the stock transfer books of the Corporation.

      8.   Waiver.      Any of the rights of the holders of Series A Preferred
Stock set forth herein may be waived by the affirmative vote of the holders
of more than 66 2/3% of the shares of Series A Preferred Stock then
outstanding.

                                 ARTICLE SEVEN
                              BOARD OF DIRECTORS

                                       20
<PAGE>

      In furtherance and not in limitation of the powers conferred by statute,
the Board of Directors is expressly authorized to make, alter or repeal the
by- laws of the corporation, but the stockholders may make additional by-laws
and may alter or repeal any by-law whether adopted by them or otherwise.

      Election of directors need not be by written ballot unless required by
the by-laws of the corporation.

      Except to the extent that the General Corporation Law of Delaware
prohibits the elimination or limitation of liability of directors for
breaches of fiduciary duty, no director of the corporation shall be
personally liable to the corporation or its stockholders for monetary damages
for any breach of fiduciary duty as a director, notwithstanding any provision
of law imposing such liability.  No amendment to or repeal of this provision
shall apply to or have any effect on the liability or alleged liability of
any director of the corporation for or with respect to any acts or omissions
of such director occurring prior to such amendment.

                                 ARTICLE EIGHT
                                INDEMNIFICATION

     The corporation shall, to the fullest extent permitted by Section 145 of
the General Corporation Law of Delaware, as amended from time to time,
indemnify each person who was or is a party or is threatened to be made a
party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the
fact that he is or was, or has agreed to become, a director or officer of the
corporation, or is or was serving, or has agreed to serve, at the request of
the corporation, as a director, officer or trustee of, or in a similar
capacity with, another corporation, partnership, joint venture, trust or
other enterprise (including any employee benefit plan) (any such person being
referred to hereafter as an "Indemnitee"), or by reason of any action alleged
to have been taken or omitted in such capacity, against all expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by or on behalf of an Indemnitee in
connection with such action, suit or proceeding and any appeal therefrom;
provided that the corporation shall not indemnify an Indemnitee seeking
indemnification in connection with a proceeding (or part thereof) initiated
by such Indemnitee unless the initiation thereof was approved by the Board of
Directors of the corporation; and provided further that the corporation shall
not indemnify an Indemnitee to the extent such Indemnitee is reimbursed from
the proceeds of insurance, and in the event the corporation makes any
indemnification payments to an Indemnitee and such Indemnitee is subsequently
reimbursed from the proceeds of insurance, such Indemnitee shall promptly
refund such indemnification payments to the corporation to the extent of such
insurance reimbursement.

     As a condition precedent to his right to be indemnified, the Indemnitee
must notify the corporation in writing as soon as practicable of any action,
suit, proceeding or investigation involving him for which indemnity will or
could be sought. With respect to any action, suit, proceeding or
investigation of which the corporation is so notified, the corporation will
be entitled to participate therein at its own expense and/or to assume the
defense thereof at its own expense, with legal counsel reasonably acceptable
to the Indemnitee.

     In the event that the corporation does not assume the defense of any
action, suit, proceeding or investigation of which the corporation receives
notice under this Article, the corporation shall pay in advance of the final
disposition of such matter any expenses (including attorneys' fees) incurred by
an Indemnitee in defending any such action, suit, proceeding or investigation or
any

                                       21
<PAGE>

appeal therefrom; provided, however, that the payment of such expenses incurred
by an Indemnitee in advance of the final disposition of such matter shall be
made only upon receipt of an undertaking by or on behalf of the Indemnitee to
repay all amounts so advanced in the event that it shall ultimately be
determined that the Indemnitee is not entitled to be indemnified by the
corporation as authorized in this Article, which undertaking shall be accepted
without reference to the financial ability of the Indemnitee to make such
repayment; and further provided that no such advancement of expenses shall be
made if it is determined that (i) the Indemnitee did not act in good faith and
in a manner he reasonably believed to be in, or not opposed to, the best
interests of the corporation, or (ii) with respect to any criminal action or
proceeding, the Indemnitee had reasonable cause to believe his conduct was
unlawful.

     All determinations hereunder as to the entitlement of an Indemnitee to
indemnification or advancement of expenses shall be made in each instance by
(a) a majority vote of the directors of the corporation consisting of persons
who are not at that time parties to the action, suit or proceeding in
question ("disinterested directors"), whether or not a quorum, (b) the vote
of the holders of shares representing a majority of the votes entitled to be
cast in the election of directors, exclusive of any shares held by any party
to the action, suit or proceeding in question, (c) independent legal counsel
(who may, to the extent permitted by law, be regular legal counsel to the
corporation), or (d) a court of competent jurisdiction.

     The indemnification rights provided in this ARTICLE EIGHT shall not be
deemed exclusive of any other rights to which an Indemnitee may be entitled
under any law, agreement or vote of stockholders or disinterested directors
or otherwise, and shall inure to the benefit of the heirs, executors and
administrators of the Indemnitee. The corporation may, to the extent
authorized from time to time by its Board of Directors, grant indemnification
rights to other employees or agents of the corporation or other persons
serving the corporation and such rights may be equivalent to, or greater or
less than, those set forth in this Article.

                                 ARTICLE NINE
                                  AMENDMENTS

      Subject to Section 3 of ARTICLE SIX, the corporation reserves the right
to amend, alter, change or repeal any provision contained in this
certificate, in the manner now or hereafter prescribed by the law of the
State of Delaware.  All rights conferred upon stockholders herein are granted
subject to this reservation.

             [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       22
<PAGE>

     IN WITNESS WHEREOF, this Amended and Restated Certificate of
Incorporation, which restates and integrates and further amends the
provisions of the Certificate of Incorporation of the corporation, and which
has been duly adopted in accordance with Sections 242 and 245 of the Delaware
General Corporation Law, has been executed by its duly authorized officer
this 17th day of October, 2000.

                                              STRATEGY.COM INCORPORATED

                                              By: /s/ Wm. Nicholas Weir
                                              -------------------------

                                              Name:   Wm. Nicholas Weir
                                              -------------------------

                                              Title:  President & COO
                                              -------------------------

                                       23
<PAGE>

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