Document:

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                                                                     Exhibit 4.1

                      2000 SUPPLEMENTAL STOCK OPTION PLAN
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                        MERCURY INTERACTIVE CORPORATION

                      2000 SUPPLEMENTAL STOCK OPTION PLAN

                    (Adopted by the Board on July 25, 2000)

     1.   Purposes of the Plan. The purposes of this Stock Option Plan are to
          --------------------
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to such individuals of the
Company and to promote the success of the Company's business. Options granted
hereunder may only be Nonstatutory Stock Options.

     2.   Definitions. As used herein, the following definitions shall apply:
          -----------

          (a)  "Administrator" means the Committee, if one has been appointed,
                -------------
or the Board of Directors of the Company, if no Committee is appointed.

          (b)  "Board" means the Board of Directors of the Company. A member of
                -----
the Board shall be referred to hereinafter as a "Director."

          (c)  "Code" means the Internal Revenue Code of 1986, as amended.
                ----

          (d)  "Committee" means the Committee appointed by the Board of
                ---------
Directors in accordance with paragraph (a) of Section 4 of the Plan, if one is
appointed.

          (e)  "Common Stock" means the Common Stock of the Company.
                ------------

          (f)  "Company" means Mercury Interactive Corporation, a Delaware
                -------
corporation.

          (g)  "Continuous Status as an Employee " means that the employment or
                --------------------------------
consulting relationship is not interrupted or terminated by the Company, any
Parent or Subsidiary. Continuous Status as an Employee shall not be considered
interrupted in the case of: (i) any leave of absence approved by the
Administrator, including sick leave, military leave, or any other personal
leave; provided, however, that for purposes of Incentive Stock Options, any such
leave may not exceed ninety (90) days, unless reemployment upon the expiration
of such leave is guaranteed by contract (including certain Company policies) or
statute; or (ii) transfers between locations of the Company or between the
Company, its Parent, its Subsidiaries or its successor.

          (h)  "Director" means a member of the Board of Directors of the
                --------
Company or of the board of directors of any Parent or Subsidiary of the Company.

          (i)  "Employee" means any person, excluding Officers and Directors,
                --------
who is not a United States citizen, employed by the Company or any Parent or
Subsidiary of the Company. Neither service as a Director nor the payment of a
director's fee by the Company shall not be sufficient to constitute "employment"
by the Company.

                                      -1-
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          (j)  "Exchange Act" means the Securities Exchange Act of 1934, as
                ------------
amended.

          (k)  "Incentive Stock Option" means any Option intended to qualify as
                ----------------------
an incentive stock option within the meaning of Section 422 of the Code.

          (l)  "Nonstatutory Stock Option" means an Option not intended to
                -------------------------
qualify as an Incentive Stock Option.

          (m)  "Officer"  means a person who is an officer of the Company
                -------
within  the  meaning  of  Section  16 of the  Exchange  Act  and the  rules  and
regulations promulgated thereunder.

          (n)  "Option" means a stock option granted pursuant to the Plan.
                ------

          (o)  "Optioned Stock" means the Common Stock subject to an Option.
                --------------

          (p)  "Optionee" means an Employee who receives an Option.
                --------

          (q)  "Parent" means a "parent corporation", whether now or hereafter
                ------
existing, as defined in Section 424(e) of the Code.

          (r)  "Plan" means this 2000 Supplemental Stock Option Plan.
                ----

          (s)  "Share" means a share of the Common Stock, as adjusted in
                -----
accordance with Section 11 of the Plan.

          (t)  "Subsidiary" means a "subsidiary corporation", whether now or
                ----------
hereafter existing, as defined in Section 424(f) of the Code.

     3.   Stock Subject to the Plan. Subject to the provisions to Section 11 of
          -------------------------
the Plan, the total number of Shares reserved and available for issuance is
2,000,000.

     Subject to Section 11 of the Plan, if any Shares that have been optioned
under an Option cease to be subject to such Option (other than through exercise
of the Option), or if any Option granted hereunder is forfeited, or any such
award otherwise terminates prior to the issuance of Common Stock to the
participant, the Shares that were subject to such Option shall again be
available for distribution in connection with future Option grants under the
Plan. Shares that have actually been issued under the Plan, upon exercise of an
Option, shall not in any event be returned to the Plan and shall not become
available for future distribution under the Plan.

     4.   Administration of the Plan.
          --------------------------

          (a)  Procedure. The Plan shall be administered by (A) the Board or (B)
               ---------
a committee designated by the Board, which committee shall be constituted in
such a manner as to satisfy the legal requirements relating to the
administration of stock option plans, if any, of state corporate law, the
relevant stock exchange and the Code (the "Applicable Rules"). Once appointed,
such Committee shall serve in its designated capacity until otherwise directed
by the Board. The Board may increase the size of the

                                      -2-
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Committee and appoint additional members, remove members (with or without cause)
and substitute new members, fill vacancies (however caused), and remove all
members of the Committee and thereafter directly administer the Plan, all to the
extent permitted by the Applicable Rules.

          (b)  Powers of the Administrator. Subject to the provisions of the
               ---------------------------
Plan, and in the case of a Committee, subject to the specific duties delegated
by the Board to such Committee, the Administrator shall have the authority, in
its discretion:

               (i)    to determine the Fair Market Value of the Common Stock, in
accordance with Section 8(b) of the Plan;

               (ii)   to select the Employees to whom Options may be granted
hereunder;

               (iii)  to determine whether and to what extent Options are
granted hereunder;

               (iv)   to determine the number of shares of Common Stock to be
covered by each Option granted hereunder;

               (v)    to approve forms of agreement for use under the Plan;

               (vi)   to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Options may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and
any restriction or limitation regarding any Option or the shares of Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

               (vii)  to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan;

               (viii) to prescribe, amend and rescind rules and regulations
relating to the Plan;

               (ix)   to modify or amend each Option (subject to Section 14(b)
of the Plan);

               (x)    to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option previously
granted by the Administrator;

               (xi)   to determine and recommend the terms of any Option
exchange program or repricing program for Options granted under the Plan, and
subject to prior stockholder approval, to institute and implement any such
program;

               (xii)  to determine the terms and restrictions applicable to
Options; and

               (xiii) to make all other determinations deemed necessary or
advisable for administering the Plan.

                                      -3-
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          (c)  Effect of Administrator's Decision. The Administrator's
               ----------------------------------
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options.

     5.   Eligibility.
          -----------

          (a)  Nonstatutory Stock Options may be granted to only to Employees
who are not Officers or Directors of the Company. For purposes of the foregoing
sentence, "Employees" shall include prospective Employees to whom Options are
granted in connection with written offers of employment with the Company or any
Parent or Subsidiary of the Company.

          (b)  Each Option shall be designated in the written option agreement
as a Nonstatutory Stock Option. However, notwithstanding such designations, to
the extent that the aggregate Fair Market Value of the Shares with respect to
which Options designated as Incentive Stock Options are exercisable for the
first time by any Optionee during any calendar year (under all plans of the
Company) exceeds$100,000, such Options shall be treated as Nonstatutory Stock
Options.

          (c)  For purposes of Section 5(b), Options shall be taken into account
in the order in which they were granted, and the Fair Market Value of the Shares
shall be determined as of the time the Option with respect to such Shares is
granted.

          (d)  Nothing in the Plan or any Option granted hereunder shall confer
upon any Optionee any right with respect to continuation of employment or
consulting relationship with the Company, nor shall it interfere in any way with
the Optionee's right or the Company's right to terminate his employment or
consulting relationship at any time, with or without cause.

          (e)  The following limitations shall apply to grants of Options to
Employees:

               (i)    No Employee shall be granted, in any fiscal year of the
Company, Options to purchase more than 1,000,000 Shares.

               (ii)   In connection with his or her initial employment, an
Employee may be granted Options to purchase up to an additional 2,000,000 Shares
which shall not count against the limit set forth in subsection (i) above .

               (iii)  The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 11.

               (iv)   If an Option is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 11), the cancelled Option shall be counted against the
limit set forth in subsection (i) above. For this purpose, if the exercise price
of an Option is reduced, such reduction will be treated as a cancellation of the
Option and the grant of a new Option."

     6.   Term of Plan. The term of the Plan shall be ten (10) years, commencing
          ------------
on July 25, 2000 and terminating on July 25, 2010 unless sooner terminated under
Section 14 of the Plan.

                                      -4-
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     7.   Term of Option. The term of each Option shall be no more than ten (10)
          --------------
years from the date of grant. However, in the case of an Incentive Stock Option
granted to an Optionee who, at the time the Incentive Stock Option is granted,
owns stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the term of the
Incentive Stock Option shall be no more than five (5) years from the date of
grant.

     8.   Exercise Price and Consideration.
          --------------------------------

          (a)  The per Share exercise price under each Option shall be such
price as is determined by the Board; provided, however, in the case of a
Nonstatutory Stock Option the per Share exercise price shall be no less than
100% of the Fair Market Value per Share on the date of grant.

For purposes of this Section 8(a), in the event that an Option is amended to
reduce the exercise price, the date of grant of such Option shall thereafter be
considered to be the date of such amendment.

          (b)  The Fair Market Value shall be determined by the Board in good
faith; provided, however, that where there is a public market for the Common
Stock, the Fair Market Value per Share shall be the mean of the bid and asked
prices (or the closing price per share if the Common Stock is listed on the
National Association of Securities Dealers Automated Quotation ("NASDAQ")
National Market System) of the Common Stock for the date of grant, as reported
in the Wall Street Journal (or, if not so reported, as otherwise reported by the
NASDAQ System) or, in the event the Common Stock is listed on a stock exchange,
the Fair Market Value per Share shall be the closing price on such exchange on
the date of grant of the Option, as reported in the Wall Street Journal.

          (c)  The Administrator shall determine the acceptable form of
consideration for exercising an Option, including the method of payment. The
Administrator shall determine the acceptable form of consideration at the time
of grant. Such consideration may consist entirely of:

               (i)   cash;

               (ii)  check;

               (iii) promissory note;

               (iv)  other Shares which (A) in the case of Shares acquired upon
exercise of an option, have been owned by the Optionee for more than six months
on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

               (v)   delivery of a properly executed exercise notice together
with such other documentation as the Administrator and the broker, if
applicable, shall require to effect an exercise of the Option and delivery to
the Company of the sale or loan proceeds required to pay the exercise price and
any tax withholding resulting from such exercise;

               (vi)  any combination of the foregoing methods of payment; or

                                      -5-
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               (vii) such other consideration and method of payment for the
issuance of Shares to the extent permitted by applicable laws.

          (d)  Prior to issuance of the Shares upon exercise of an Option, the
Optionee shall pay or make adequate provision for any federal or state
withholding obligations of the Company, if applicable.

     9.   Exercise of Option.
          ------------------

          (a)  Procedure for Exercise; Rights as a Stockholder. Any Option
               -----------------------------------------------
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Board at the time of grant, including performance criteria
with respect to the Company and/or the Optionee, and as shall be permissible
under the terms of the Plan.

          An Option may not be exercised for a fraction of a Share.

          An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may, as authorized by the Board, consist of any
consideration and method of payment allowable under Section 8(c) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate as promptly as practicable upon exercise of
the Option. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the stock certificate is issued, except as
provided in Section 11 of the Plan.

          Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

          (b)  Termination of Status as an Employee. In the event of termination
               ------------------------------------
of an Optionee's Continuous Status as an Employee with the Company, such
Optionee may, but only within thirty (30) days after the date of such
termination (or such other period as is set out by the Administrator in the
Option Agreement, but in no event later than the expiration date of the term of
such Option as set forth in the Option Agreement), exercise the Option to the
extent that Optionee was entitled to exercise it at the date of such
termination. To the extent that Optionee was not entitled to exercise the Option
at the date of such termination, or if Optionee does not exercise such Option to
the extent so entitled within the time specified herein, the Option shall
terminate.

          (c)  Disability of Optionee. Notwithstanding the provisions of Section
               ----------------------
9(b) above, in the event of termination of an Optionee's Continuous Status as an
Employee as a result of his total and permanent disability (as defined in
Section 22(e)(3) of the Code), he may exercise his Option to the extent he was
entitled to exercise it at the date of such termination within six (6) months
from the date of such termination (or such other period as is specified in the
grant, but in no event later than the date of expiration of the term of such
Option as set forth in the Option Agreement). To the extent that the Optionee
was not

                                      -6-
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entitled to exercise the Option at the date of termination, or does not exercise
such Option (to the extent exercisable) within the time specified herein, the
Option shall terminate.

          (d)  Death of Optionee. Notwithstanding the provisions of Section 9(b)
               -----------------
above, in the event of the death of an Optionee:

               (i)  during the term of the Option, who is at the time of his
death an Employee of the Company and who shall have been in Continuous Status as
an Employee since the date of grant of the Option, the Option may be exercised,
at any time within six (6) months following the date of death ((or such other
period as is specified in the grant, but in no event later than the date of
expiration of the term of such Option as set forth in the Option Agreement), by
the Optionee's estate or by a person who acquired the right to exercise the
Option by bequest or inheritance, by the Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, as to all
of the Optioned Stock, including Shares as to which it would not otherwise be
exercisable, and such Shares shall be fully vested and not subject to any
repurchase option; or

               (ii) during the post-termination exercise period specified in the
grant with respect to terminations under Section 9(b) above, at any time within
six (6) months following the date of death (or such other period as is
determined by the Administrator, but in no event later than the date of
expiration of the term of such Option as set forth in the Option Agreement), by
the Optionee's estate or by a person who acquired the right to exercise the
Option by bequest or inheritance, but only to the extent of the right to
exercise that had accrued at the date of termination.

     10.  Non-Transferability of Options.  Except as otherwise designated by the
          ------------------------------
Administrator, an Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

     11.  Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset
          ----------------------------------------------------------------------
          Sale or Change of Control.
          -------------------------

          (a)  Changes in Capitalization.  Subject to any required action by the
               -------------------------
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option.

                                      -7-
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          (b)  Dissolution or Liquidation.  In the event of the proposed
               --------------------------
dissolution or liquidation of the Company, to the extent that an Option has not
been previously exercised, it will terminate immediately prior to the
consummation of such proposed action. The Board may, in the exercise of its sole
discretion in such instances, declare that any Option shall terminate as of a
date fixed by the Board and give each Optionee the right to exercise his or her
Option as to all or any part of the Optioned Stock, including Shares as to which
the Option would not otherwise be exercisable.

          (c)  Merger or Asset Sale.  In the event of a merger of the Company
               --------------------
with or into another corporation or the sale of substantially all of the assets
of the Company:

               (i)  Each outstanding Option shall be assumed or an equivalent
option substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. Any Shares subject to a repurchase option of the Company
shall be exchanged for the consideration (whether stock, cash, or other
securities or property) received in the merger or asset sale by the holders of
the Common Stock for the successor corporation or a parent or subsidiary of such
successor corporation for each Share held on the effective date of the
transaction and such consideration shall, in the case of securities of the
successor corporation, be subject to a repurchase option with terms consistent
to the Company's repurchase option and in the case of any other property shall
be subject to vesting according to the schedule for the lapse of the repurchase
option.

               (ii) In the event that the successor corporation refuses to
assume or substitute for the Option, the Optionee shall have the right to
exercise the Option as to all of the Optioned Stock, including Shares as to
which it would not otherwise be exercisable, and such Shares shall be fully
vested and not subject to any repurchase option. In the event that the successor
corporation fails to assume the restricted stock purchase agreement pursuant to
which the Optionee purchased unvested Shares, the Company's repurchase option
shall lapse and the shares shall be fully vested. If an Option is exercisable in
lieu of assumption or substitution in the event of a merger or sale of assets,
the Administrator shall notify the Optionee that the Option shall be fully
exercisable for a period of fifteen (15) days from the date of such notice, and
the Option shall terminate upon the expiration of such period. For the purposes
of this paragraph, the Option shall be considered assumed if, following the
merger or sale of assets, the option confers the right to purchase or receive,
for each Share of Optioned Stock subject to the Option immediately prior to the
merger or sale of assets, the consideration (whether stock, cash, or other
securities or property) received in the merger or sale of assets by holders of
Common Stock for each Share held on the effective date of the transaction (and
if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided,
however, that if such consideration received in the merger or sale of assets was
not solely Common Stock of the successor corporation or its Parent, the
Administrator may, with the consent of the successor corporation, provide for
the consideration to be received upon the exercise of the Option, for each Share
of Optioned Stock subject to the Option, to be solely common stock of the
successor corporation or its Parent equal in Fair Market Value to the per share
consideration received by holders of Common Stock in the merger or sale of
assets.

     12.  Stock Withholding to Satisfy Withholding Tax Obligations.  At the
          --------------------------------------------------------
discretion of the Administrator, Optionees may satisfy withholding obligations
as provided in this paragraph. When an Optionee incurs tax liability in
connection with the exercise of an Option, which tax liability is subject to tax
withholding under applicable tax laws, and the Optionee is obligated to pay the
Company an amount required to be withheld under applicable tax laws, the
Optionee may satisfy the withholding tax obligation by electing

                                      -8-
<PAGE>

to have the Company withhold from the Shares to be issued upon exercise of the
Option that number of Shares having a Fair Market Value equal to the amount
required to be withheld. The Fair Market Value of the Shares to be withheld
shall be determined on the date that the amount of tax to be withheld is
determined (the "Tax Date").

     All elections by an Optionee to have Shares withheld for this purpose shall
be made in writing in a form acceptable to the Administrator and shall be
subject to the following restrictions:

          (a)  the election must be made on or prior to the applicable Tax Date;

          (b)  once made, the election shall be irrevocable as to the particular
Shares of the Option as to which the election is made;

          (c)  all elections shall be subject to the consent of the
Administrator;

          (d)  if the Optionee is subject to Rule 16b-3, the election must
comply with the applicable provisions of Rule 16b-3 and shall be subject to such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

     In the event the election to have Shares withheld is made by an Optionee
and the Tax Date is deferred under Section 83 of the Code because no election is
filed under Section 83(b) of the Code, the Optionee shall receive the full
number of Shares with respect to which the Option is exercised but such Optionee
shall be unconditionally obligated to tender back to the Company the proper
number of Shares on the Tax Date.

     13.  Time of Granting Options.  The date of grant of an Option shall, for
          ------------------------
all purposes, be the date on which the Board makes the determination granting
such Option. Notice of the determination shall be given to each Employee to whom
an Option is so granted within a reasonable time after the date of such grant.

     14.  Amendment and Termination of the Plan.
          -------------------------------------

          (a)  Amendment and Termination.  The Board may amend or terminate the
               -------------------------
Plan from time to time in such respects as the Board may deem advisable;
provided that the following changes shall require approval of the stockholders
of the Company in the manner described in Section 18 of the Plan: (i) changes in
the designation of the class of persons eligible to be granted Options; and/or
(ii) the reduction of the exercise price of any Option to the then current Fair
Market Value if the Fair Market Value of the Common Stock covered by such Option
shall have declined since the date the Option was granted.

          (b)  Effect of Amendment or Termination.  Any such amendment or
               ----------------------------------
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

                                      -9-
<PAGE>

     15.  Conditions Upon Issuance of Shares.  Shares shall not be issued
          ----------------------------------
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

          As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

     16.  Reservation of Shares.  The Company, during the term of this Plan,
          ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

     17.  Option Agreement.  Options shall be evidenced by written option
          ----------------
agreements in such form as the Board shall approve.

     18.  Stockholder Approval.  Any required stockholder approval obtained at a
          --------------------
duly held stockholders' meeting, may be obtained by the affirmative vote of the
holders of a majority of the outstanding Shares of the Company present or
represented and entitled to vote thereon.
<PAGE>

                       MERCURY INTERACTIVE CORPORATION
                      2000 SUPPLEMENTAL STOCK OPTION PLAN

                         NOTICE OF STOCK OPTION GRANT
                         ----------------------------

[Optionee's Name]
[Address]

     You have been granted an Option, consisting of the Stock Option Agreement
attached hereto as Exhibit A, Notice of Stock Option Beneficiary(ies) attached
hereto as Exhibit B and this Notice of Stock Option Grant (together, the "Option
Agreement") to purchase Common Stock of MERCURY INTERACTIVE CORPORATION (the
"Company") as follows:

     Date of Grant                       [x]
                                      ---------------------------------

     Vesting Commencement Date           [x]
                                      ---------------------------------

     Option Price Per Share            $ [x]
                                      ---------------------------------

     Total Number of Shares Granted      [x]
                                      ---------------------------------

     Total Price of Shares Granted     $ [x]
                                      ---------------------------------

     Type of Option                   ____  Incentive Stock Option
                                      ____  Nonqualified Stock Option

     Term/Expiration Date             10 years/   [x]
                                                -----------------------

     Exercise Schedule:
     -----------------

     This Option may be exercised in whole or in part, in accordance with the
Vesting Schedule set out below.

     Vesting Schedule
     ----------------

          Date of Vesting                          Number of Shares
          ---------------                          ----------------

          Vesting Date                             25%(_________)

          Thereafter, monthly on the last day of each month, 1/48 (_____) of the
          total number of Shares until fully vested. In the event of fractional
          Shares, the monthly number of Shares shall be adjusted accordingly to
          the nearest whole Share.
<PAGE>

     Termination Period:
     ------------------

     Option may be exercised for thirty (30) days after termination of
                                 ----------------
employment or consulting relationship except as set out in Sections 6 and 7 of
the Stock Option Agreement (but in no event later than the Expiration Date).

     Form of Exercise:
     ----------------

     Exercise of this Option shall be on a properly executed Exercise Notice in
the form provided by the Company, along with (i) cash, (ii) check or (iii) if by
broker sale, delivery of such documentation as the Plan Administrator and the
broker shall require to effect delivery of the sale or loan proceeds required to
pay the exercise price and any tax withholding resulting from such exercise.

     OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO
THIS OPTION IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR
ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT
NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY'S 2000 SUPPLEMENTAL STOCK OPTION
PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY
RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY,
NOR SHALL IT INTERFERE IN ANY WAY WITH HIS RIGHT OR THE COMPANY'S RIGHT TO
TERMINATE HIS EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE.

     Optionee acknowledges receipt of a copy of the Plan and certain information
related to it and represents that he or she is familiar with the terms and
provisions of the Plan and this Option Agreement. Optionee accepts this Option
Agreement subject to all such terms and provisions. Optionee has reviewed the
Plan and this Option Agreement in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option Agreement and fully
understands all provisions of the Option Agreement.

     By your signature and the signature of the Company's representative below,
you and the Company agree that this Option is granted under and governed by the
terms and conditions of the 2000 SUPPLEMENTAL STOCK OPTION PLAN and the Option
Agreement, each of which are attached and made a part of this document.

OPTIONEE:                               MERCURY INTERACTIVE CORPORATION,
                                        a Delaware corporation

______________________________          By _______________________________
Signature

______________________________          Title ____________________________
Print Name

Dated: _______, 20____                  Dated: _______, 20____

I am unmarried or reside in a separate property state___.
Spousal consent attached____.
I am married and have previously filed a spousal consent with the Company_____.
<PAGE>

                               CONSENT OF SPOUSE
                               -----------------

The undersigned spouse of Optionee has read and hereby approves the terms and
conditions of the Mercury Interactive Corporation 2000 Supplemental Stock Option
Plan (the "Plan") and this Option Agreement. In consideration of the Company's
granting his or her spouse the right to purchase Shares as set forth in the Plan
and this Option Agreement, the undersigned hereby agrees to be irrevocably bound
by the terms and conditions of the Plan and this Option Agreement and any other
option in which the undersigned may have an interest and further agrees that any
community property interest shall be similarly bound. The undersigned hereby
appoints the undersigned's spouse as attorney-in-fact for the undersigned with
respect to any amendment or exercise of rights under the Plan and this Option
Agreement and any other option in which the undersigned may have an interest.

                                        ____________________________
                                            Spouse of Optionee
<PAGE>

                         EXHIBIT A TO NOTICE OF GRANT

                        MERCURY INTERACTIVE CORPORATION

                            STOCK OPTION AGREEMENT

                  FOR THE 2000 SUPPLEMENTAL STOCK OPTION PLAN

     1.   Grant of Option.  Mercury Interactive Corporation, a Delaware
          ---------------
corporation ("the Company"), has granted to the Optionee named in the Notice of
Grant (the "Optionee"), an option (the "Option") to purchase a total number of
shares of Common Stock (the "Shares") set forth in the Notice of Grant, at the
exercise price per share set forth in the Notice of Grant (the "Exercise
Price"), and in all respects subject to the terms, definitions and provisions of
the 2000 Supplemental Stock Option Plan (the "Plan") adopted by the Company,
which is incorporated herein by reference. Unless otherwise defined herein, the
terms defined in the Plan shall have the same defined meanings herein.

     This Option is A Nonstatutory Stock Option.

     2.   Exercise of Option.  This Option shall be exercisable during its term
          ------------------
in accordance with the provisions of Section 9 of the Plan as follows:

               (a)  Right to Exercise.
                    -----------------

                         (i)   Subject to subsections 2 (a) (ii), (iii) and (iv)
below, this Option shall be exercisable cumulatively, as set forth in the Notice
of Grant; provided, however, that the vesting schedule shall temporarily cease
during any period of time that the Optionee's employment is subject to an
approved leave of absence in excess of thirty (30) days and recommences
thereafter. This Option may be exercised in whole or in part at any time as to
Shares which have not yet vested under the vesting schedule; provided, however,
that the Optionee shall execute as a condition to such exercise of this Option,
the Restricted Stock Purchase Agreement attached hereto as Exhibit A.

                         (ii)  This Option may not be exercised for a fraction
of a share.

                         (iii) In the event of Optionee's death, disability or
other termination of employment, the exercisability of the Option is governed by
Sections 5, 6 and 7 below, subject to the limitations contained in subsection
2(a)(iv).

                         (iv) In no event may this Option be exercised after the
date of expiration of the term of this Option as set forth in Section 9 below.
<PAGE>

          (b)  Method of Exercise.  This Option shall be exercisable by written
notice which shall state the election to exercise the Option, the number of
Shares in respect of which the Option is being exercised, and such other
representations and agreements with respect to such Shares of Common Stock as
may be required by the Company pursuant to the provisions of the Plan. Such
written notice shall be signed by the Optionee and shall be delivered in person
or by certified mail to the Secretary of the Company. The written notice shall
be accompanied by payment of the Exercise Price. This Option shall be deemed to
be exercised upon the receipt by the Company of such written notice accompanied
by the Exercise Price.

     No share will be issued pursuant to the exercise of an Option unless such
issuance and such exercise shall comply with all relevant provisions of law and
the requirements of any stock exchange upon which the Shares may then be listed.
Assuming such compliance, for income tax purposes the Shares shall be considered
transferred to the Optionee on the date on which the Option is exercised with
respect to such Shares.

     3.   Method of Payment.
          -----------------

               (a)  Forms of Consideration Authorized. Payment of the Exercise
Price shall consist of: (i) cash; (ii) check; (iii) by means of a Cashless
Exercise, as defined in this Section 3(b); or (iv) by any combination of the
foregoing.

               (b)  A "Cashless Exercise" means the assignment in a form
acceptable to the Company of the proceeds of a sale or loan with respect to some
or all of the shares of Stock acquired upon the exercise of the Option pursuant
to a program or procedure approved by the Company (including, without
limitation, through an exercise complying with the provisions of Regulation T as
promulgated from time to time by the Board of Governors of the Federal Reserve
System). The Company reserves, at any and all times, the right, in the Company's
sole and absolute discretion, to decline to approve or terminate any such
program or procedure.

     4.   Restrictions on Exercise.  This Option may not be exercised until such
          ------------------------
time as the Plan has been approved by the stockholders of the company, or if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any applicable
federal or state securities or other law or regulation, including any rule under
Part 207 of Title 12 of the Code of Federal Regulations ("Regulation G") as
promulgated by the Federal Reserve Board. As a condition to the exercise of this
Option, the Company may require Optionee to make any representation and warranty
to the Company as may be required by any applicable law or regulation.

     5.   Termination of Status as an Employee.  In the event of termination of
          ------------------------------------
Optionee's Continuous Status as an Employee, the Optionee may, but only within
thirty days after the date of such termination (but in no event later than the
date of expiration of the term of this Option as set forth in Section 9 below),
exercise this Option to the extent
<PAGE>

exercisable at the date of such termination. To the extent this Option was not
exercisable at the date of such termination, or if the Optionee does not
exercise this Option within the time specified herein, the Option shall
terminate.

     6.   Disability of Optionee.  Notwithstanding the provisions of Section 5
          ----------------------
above, in the event of termination of Optionee's Continuous Status as an
Employee as a result of Optionee's total and permanent disability (as defined in
Section 22 (e) (3) of the Code), the Optionee may, but only within six months
days from the date of termination of employment (but in no event later than the
date of expiration of the term of this Option as set forth in Section 9 below),
exercise this Option to the extent exercisable at the date of such termination.
To the extent that the Option was not exercisable at the date of termination, or
if the Optionee does not exercise such Option within the time specified herein,
the Option shall terminate.

     7.   Death of Optionee. In the event of the death of Optionee:
          -----------------

               (a)  during the term of this Option and while an Employee of the
Company and having been in continuous status as an Employee since the date of
grant of the Option, the Option may be exercised in full even as to shares which
otherwise would not have been vested, at any time within six months following
the date of death (but in no event later than the date of expiration of the term
of this Option as set forth in Section 9 below), by Optionee's estate or by a
person who acquired the right to exercise; or

               (b)  within thirty days after the termination of Optionee's
Continuous Status as an Employee, the Option may be exercised, at any time
within six months following the date of death (but in no event later than the
date of expiration of the term of this Option as set forth in Section 9 below),
by Optionee's estate or by a person who acquired the right to exercise the
Option by bequest or inheritance, but only to the extent of the right to
exercise what had accrued at the date of termination.

     8.   Non-Transferability of Option; Successors and Assigns. This Option
          -----------------------------------------------------
may not be transferred in any manner otherwise than by will or by the laws of
descent or distribution and may be exercised during the lifetime of Optionee
only by him. The terms of this Option shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

     9.   Term of Option. This Option may not be exercised more than ten (10)
          --------------
years (five years if Optionee owns, immediately before this Option is granted,
stock representing more than 10 percent of the total combined voting power of
all classes of stock of the Company or of any Parent or Subsidiary) from the
date of grant of this Option, and may be exercised during such term only in
accordance with the Plan and the terms of this Option.

     10.  Taxation Upon Exercise of Option.  Optionee understands that, upon
          --------------------------------
exercising a Nonstatutory Stock Option, the Optionee will be treated as having
received
<PAGE>

compensation income (taxable at ordinary income tax rates) for tax purposes in
an amount equal to the excess of the then fair market value of the Shares over
the Exercise Price. If the Optionee is an employee, the Company will be required
to withhold from Optionee's compensation, or collect from Optionee and pay to
the applicable taxing authorities an amount equal to a percentage of this
compensation income. The Optionee shall satisfy his or her tax withholding
obligation arising upon the exercise of this Option by one or some combination
of the following methods: (i) by cash payment, or (ii) out of Optionee's current
compensation, or (iii) in the case of a Cashless Exercise, the Company shall
withhold such taxes from the proceeds of the sale of the Shares.

THE ABOVE TAX SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND
REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE
EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

     11.  Designation of Beneficiary. The Employee shall have the right to
          --------------------------
appoint any individual or legal entity in writing, on Exhibit B to the Notice of
Grant, as his or her beneficiary to receive any Option (to the extent not
previously exercised or forfeited) under this Agreement upon the Employee's
death. Such designation under this Agreement may be revoked by the Employee at
any time and a new beneficiary may be appointed by the Employee by execution and
submission to the Stock Administration Department of the Company of a revised
Exhibit B to the Notice of Grant. In order to be effective, a designation of
beneficiary must be completed by the Employee on Exhibit B and received by the
Stock Administration Department of the Company, prior to the date of the
Employee's death. In the absence of such designation, the Employee's beneficiary
shall be the person designated under the Employee's will or as defined by the
applicable state laws of the decedent's distribution.

     OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES SUBJECT TO THIS
OPTION IS EARNED ONLY BY CONTINUING EMPLOYMENT AT THE WILL OF THE COMPANY (NOT
THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES
HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS
AGREEMENT, NOR IN THE COMPANY'S STOCK OPTION PLAN WHICH IS INCORPORATED HEREIN
BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION
OF EMPLOYMENT BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH HIS OR HER
RIGHT OR THE COMPANY'S RIGHT TO TERMINATE HIS OR HER EMPLOYMENT AT ANY TIME,
WITH OR WITHOUT CAUSE.
<PAGE>

                         EXHIBIT B TO NOTICE OF GRANT

                    NOTICE OF STOCK OPTION BENEFICIARY(IES)

                    FOR THE MERCURY INTERACTIVE CORPORATION
                      2000 SUPPLEMENTAL STOCK OPTION PLAN

     If I shall cease to be an Employee of Mercury Interactive Corporation (the
"Company"), or of a Parent or a Subsidiary of the Company by reason of my death,
or if I shall die after I have terminated my employment with the Company, a
Parent or a Subsidiary, but, prior to the expiration of the Option (as provided
in the Notice of Grant and Stock Option Agreement), then all rights to the
Option granted under the Notice of Grant and Stock Option Agreement that I
hereby hold upon my death, to the extent not previously terminated or forfeited,
shall be transferred in the manner provided for in the Plan and the Agreement to
the following beneficiary(ies) as well as the obligation to make the payments of
the exercise price of such stock options due to Mercury Interactive upon the
exercise of any such options:

NAME OF BENEFICIARY (Please print):

     ______________________________________________
     (First)         (Middle)           (Last)

__________________________  _______________________________________
(Relationship)
                            _______________________________________

                            _______________________________________
                                  (Address)

NAME OF BENEFICIARY (Please print):
     --------------------------------------------------------------
     (First)                  (Middle)               (Last)

___________________________  __________________________________________
 (Relationship)
                             __________________________________________

                             __________________________________________
                                   (Address)

Unless  otherwise  specified in writing  above,  the rights my Options  shall be
divided equally among all of the above named beneficiaries.

Employee's Social Security Number: _________________________________________
<PAGE>

Employee's Address:       ----------------------------------------------

                          ----------------------------------------------

                          ----------------------------------------------

I UNDERSTAND THAT THIS  DESIGNATION OF  BENEFICIARY(IES)  SHALL REMAIN IN EFFECT
UNLESS TERMINATED IN WRITING BY ME.

Dated: __________________                    ___________________________
                                             Signature of Employee

                                       2Exhibit 10.8

                            STOCK PURCHASE AGREEMENT

THIS  STOCK  PURCHASE  AGREEMENT  ("Agreement")  is made as of the  31st  day of
January,  1999,  by  and  between  CBCOM,  INC.,  a  Delaware  corporation  (the
"Company"),  and Sinoway,  Ltd., a China company with  headquarters in Shanghai,
China ("Purchaser").

WHEREAS,  the Purchaser  wishes to purchase  shares of the  Company's  Stock (as
defined  below) in exchange for cash and as  consideration  for entering  into a
joint venture agreement with the Company and transferring  certain assets to the
joint venture to be formed thereby;

              NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

1.       Purchase and Sale of Stock.

         1.1      Purchase  of Shares.  Subject to the terms and  conditions  of
                  this Agreement,  Purchaser hereby  purchases,  and the Company
                  agrees to sell and issue to Purchaser, 1,250,000 shares of the
                  Company's  Common Stock, par value $0.001 per share ("Stock").
                  The  consideration  for the  purchase  is (a)  $1,250 in cash,
                  receipt  of  which  is  hereby   acknowledged,   and  (b)  the
                  Purchaser's   affiliated  company,   Shanghai  Stock  Exchange
                  Communications  Company,  entering into a  Sino-foreign  joint
                  venture  with the Company  (or the  Company's  affiliate)  and
                  transferring  to that joint venture  certain assets  described
                  below ("Assets").  The Company's Board of Directors has agreed
                  that the consideration  expressed herein is sufficient for the
                  purchase of the Stock.

         1.2      Escrow of Shares.  Purchaser  and the  Company  agree that the
                  Company  shall  hold the  Stock  in  escrow  at the  Company's
                  offices until (a) the Shanghai Stock  Exchange  Communications
                  Company has entered into a Sino-foreign  joint venture ("Joint
                  Venture")  with the  Company,  (b) the Joint  Venture has been
                  approved by the applicable  Chinese  governmental  authorities
                  and permitted and licensed to do business,  and (c) the Assets
                  have been duly and validly transferred into the joint venture.

         1.3      Assets.  The  Assets are  agreed to be the  following:  (a) an
                  exclusive   license   to  use  the   satellite   network   and
                  communications  system and other assets of the Shanghai  Stock
                  Exchange  Communications  Company for joint  venture  projects
                  ("Projects,"  as  further  defined  in the  letter  of  intent
                  between   the  Company  and  the   Shanghai   Stock   Exchange
                  Communications  Company  dated  1/31,1999,  a copy of which is
                  attached as Exhibit B).

         1.4      Failure of Escrow.  In the event that the conditions listed in
                  subsections  (a) - (c) of Section 1.2 are not met on or before
                  6/30/00,  the Stock  shall be canceled  and the Company  shall
                  return the $1,250 cash consideration to the Purchaser.

2.       Representations and Warranties of Purchaser.

         Purchaser hereby represents and warrants to the Company that:

         2.1      Authorization. Purchaser represents that it has full power and
                  authority  to enter into and perform  this  Agreement.  If the
                  Purchaser is an individual,  the Purchaser has reached the age
                  of majority according to the laws of the jurisdiction in which
                  he resides.  The  Purchaser,  if executing this Agreement in a
                  representative  or  fiduciary  capacity,  has full  power  and
                  authority  to  execute  and  deliver  this  Agreement  in such
                  capacity  and  on  behalf  of  the   subscribing   individual,
                  partnership,  trust,  estate,  corporation or other entity for
                  whom or which the Purchaser is executing this  Agreement,  and
                  the above  representations  and warranties  shall be deemed to
                  have been made on behalf of the person or persons for whom the
                  Purchaser is so purchasing. If the signatory of this Agreement
                  on  behalf  of  the  Purchaser  is  not  the  Purchaser  or an
                  authorized officer or partner of the Purchaser,  the signatory
                  represents and warrants to the Company that the signatory is a
                  professional fiduciary of the Purchaser,  acting solely in its
                  capacity as holder of such account,  as a fiduciary,  executor
                  or trustee.

         2.2      Valid and Binding  Agreement.  This Agreement  constitutes its
                  valid  and  legally   binding   obligation,   enforceable   in
                  accordance  with its terms. If the Purchaser is a corporation,
                  the Purchaser is duly and validly organized,  validly existing
                  and in good tax and corporate  standing as a corporation under
                  the  laws  of  the  jurisdiction  of  its  incorporation,  and
                  qualified  to do business in the  jurisdiction  in which it is
                  located,  with full power and  authority to purchase the Stock
                  and to execute and deliver this Agreement. If the Purchaser is
                  a partnership,  the partnership is duly and validly formed and
                  existing in good standing  under the laws of its  jurisdiction
                  of formation and qualified to do business in the  jurisdiction
                  in which it is  located,  with  full  power and  authority  to
                  purchase the Stock and to execute and deliver this  Agreement,
                  and   the   representations,    warranties,   agreements   and
                  understandings  set forth  above are true with  respect to all
                  partners in the Purchaser (and if any such partner is itself a
                  partnership,   all   persons   holding  an  interest  in  such
                  partnership,  directly or indirectly, including through one or
                  more  partnerships),  and the person  executing this Agreement
                  has made due  inquiry to  determine  the  truthfulness  of the
                  representations  and warranties made hereby.  If the Purchaser
                  is any other form of business  entity,  the  Purchaser is duly
                  and validly  organized,  validly existing and in good standing
                  as such  entity  under  the  laws of the  jurisdiction  of its
                  incorporation,   and   qualified   to  do   business   in  the
                  jurisdiction  in which it is  located,  with  full  power  and
                  authority  to  purchase  the Stock and to execute  and deliver
                  this Agreement.

         2.3      Purchase Entirely for Own Account. This Agreement is made with
                  Purchaser in reliance upon Purchaser's  representation  to the
                  Company,  which by  Purchaser's  execution  of this  Agreement
                  Purchaser  hereby  confirms,  that the Stock to be received by
                  Purchaser will be acquired for investment for  Purchaser's own
                  account, not as a nominee or agent, and not with a view to the
                  resale or distribution of any part thereof; and that Purchaser
                  has  no   present   intention   of   selling,   granting   any
                  participation  in, or  otherwise  distributing  the  same.  By
                  executing this Agreement,  Purchaser  further  represents that
                  Purchaser does not have any contract,  undertaking,  agreement
                  or  arrangement  with any  person to sell,  transfer  or grant
                  participation  to such  person  or to any third  person,  with
                  respect to any of the Stock.

         2.4      Disclosure of Information.  Purchaser believes it has received
                  all the information it considers  necessary or appropriate for
                  deciding  whether to  purchase  the Stock.  Purchaser  further
                  represents that it has had an opportunity to ask questions and
                  receive  answers  from the  Company  regarding  the  terms and
                  conditions of the offering of the Stock.

         2.5      Investment Experience.  Purchaser is an investor in securities
                  of companies in the development stage and acknowledges that it
                  is able to fend for itself,  can bear the economic risk of its
                  investment  and has such knowledge and experience in financial
                  or  business  matters  that it is  capable of  evaluating  the
                  merits and risks of the  investment  in the  Stock.  Purchaser
                  understands  that  the  Company  is  a  development   company,
                  proposing  to engage in a  high-technology  based  business in
                  China, with all the attendant  business risks of a development
                  stage  company,  the risks of  engaging  in a high  technology
                  business, and the risks of doing business in China, as well as
                  other business risks.  If other than an individual,  Purchaser
                  also  represents it has not been  organized for the purpose of
                  acquiring the Stock.

         2.6      Non-US Person.  Purchaser is not a "U.S.  person" as that term
                  is  defined in  Regulation  S (a copy of which  definition  is
                  attached   as  Exhibit   C).  If   Purchaser   is  a  business
                  organization,  it is  organized  under  the laws of a  country
                  other than the U.S.  Purchaser is not  acquiring the Stock for
                  the account of or for the benefit of a U.S. person.

         2.7      Offshore  Transaction.  The  Stock  was  not  offered  to  the
                  Purchaser  in the  U.S.  At the  time  of  execution  of  this
                  Agreement,  the Purchaser was  physically  outside of the U.S.
                  Purchaser has no prearranged agreement or scheme to resell the
                  Stock to any U.S. person or buyer in the U.S.

         2.8      No  Distributor,  Dealer or  Underwriter.  Purchaser  is not a
                  distributor  or dealer of the Stock.  Purchaser  is not taking
                  the Stock with the intent to make a distribution of the Stock,
                  as such  terms  are  defined  in the  Act  and the  Securities
                  Exchange  Act of 1934  (the  "1934  Act").  In any  event,  if
                  Purchaser  is  deemed  to  be  a  distributor  of  the  Stock,
                  Purchaser will act in accordance with applicable law.

         2.9      No Directed  Selling  Efforts.  To the best  knowledge  of the
                  Purchaser,   neither   the   Company   nor   any   distributor
                  participating in the sale of the Stock has conducted "directed
                  selling  efforts"  (including any activity  undertaken for the
                  purpose of, or that could  reasonably  be expected to have the
                  effect of, conditioning the market in the U.S. for the Stock),
                  including  without  limitation  mailing of printed material to
                  investors  residing in the U.S.,  the  holding of  promotional
                  seminars in the U.S., the placing of advertising with radio or
                  television   stations   broadcasting   in  the   U.S.   or  in
                  publications with a general  circulation in the U.S. Purchaser
                  knows of no public  solicitation or advertisement of any offer
                  in connection with the offering of the Stock.

         2.10     Restricted  Securities.  Purchaser understands that the shares
                  of Stock it is purchasing  are  characterized  as  "restricted
                  securities" under the federal securities laws inasmuch as they
                  are being  acquired  from the  Company  in a  transaction  not
                  involving  a public  offering  and that  under  such  laws and
                  applicable  regulations  such securities may be resold without
                  registration under the Securities Act of 1933, as amended (the
                  "Act"),  only  in  certain  limited  circumstances.   In  this
                  connection,  Purchaser represents that it is familiar with SEC
                  Rule 144, as presently in effect,  and  understands the resale
                  limitations imposed thereby and by the Act.

         2.11     Further limitation on Disposition. Without in any way limiting
                  the representations set forth above,  Purchaser further agrees
                  not to make any disposition of all or any portion of the Stock
                  unless  and until  (a) there is then in effect a  Registration
                  Statement under the Act covering such proposed disposition and
                  such disposition is made in accordance with such  Registration
                  Statement;  or (b)  Purchaser  shall  have  (i)  notified  the
                  Company of the proposed  disposition  and shall have furnished
                  the Company  with a detailed  statement  of the  circumstances
                  surrounding the proposed  disposition,  and (ii) furnished the
                  Company with an opinion of counsel, reasonably satisfactory to
                  the   Company,   that  such   disposition   will  not  require
                  registration of such shares under the Act.

         2.12     Legends.  It is understood  that the  certificates
                  evidencing the Stock may bear one or all of the
                  following legends:

                  (a)      THESE  SECURITIES  HAVE NOT BEEN  REGISTERED WITH THE
                           U.S.  SECURITIES  AND EXCHANGE  COMMISSION  UNDER THE
                           U.S.  SECURITIES  ACT OF 1933, AS AMENDED (THE "ACT")
                           OR ANY OTHER SECURITIES AUTHORITIES,  AND WERE ISSUED
                           PURSUANT  TO A SAFE HARBOR  FROM  REGISTRATION  UNDER
                           REGULATION S PROMULGATED  UNDER THE ACT. THEY MAY NOT
                           BE  SOLD  OR  TRANSFERRED   EXCEPT   PURSUANT  TO  AN
                           EFFECTIVE  REGISTRATION  STATEMENT OR AN EXEMPTION TO
                           THE  REGISTRATION  REQUIREMENTS  OF THOSE  SECURITIES
                           LAWS.

                  (b)      Any legend required by applicable  securities laws of
                           the Purchaser's jurisdiction of domicile.

         2.13     Title to Assets.  Purchaser has full right, title and interest
                  in and to the assets listed at Exhibit B. The assets listed at
                  Exhibit B are owned by Purchaser  free of arty liens,  claims,
                  encumbrances  or other rights of third  parties in or to those
                  assets or any interest therein.  Purchaser's conveyance of the
                  assets  under  Section  1.2  is  valid  and  binding   against
                  Purchaser and any third party.

3.       Miscellaneous.

         3.1      Governing  Law.  This  Agreement  shall  be  governed  by  and
                  construed under the laws of the State of California as applied
                  to agreements among California  residents  entered into and to
                  be performed entirely within  California.  Any dispute arising
                  under this Agreement  shall be adjudicated by the  appropriate
                  state or federal court in the County of Los Angeles,  State of
                  California.  The  Company and  Purchaser  consent to submit to
                  jurisdiction  of such court for the purposes of resolving  any
                  dispute under this Agreement.  In the event of a dispute,  the
                  prevailing  party shall be entitled to recover  attorneys fees
                  and costs.

         3.2      Asset Transfer Documents.  Purchaser is tendering herewith the
                  necessary  documents under applicable law to transfer title of
                  the assets listed as Exhibit B to the Company.

         3.3      Further Assurances. The parties to this Agreement will execute
                  such other  documents  and perform  such other  actions as are
                  reasonably necessary to implement this Agreement.

         3.4      Purchaser Information. Purchaser shall complete and deliver to
                  the Company Exhibit A hereto,  which information shall be used
                  by the Company only for purposes of compliance with applicable
                  law and regulations.

IN WITNESS  WHEREOF,  the parties have  executed  this  Agreement as of the date
first above written.

CBCOM, INC.

By ____________________________
     Max Sun, President

PURCHASER:

For and on behalf of
SINOWAY LIMITED

-------------------------------
(Authorized Signature(s)

Zuu Yi Wel
Executive Director
Shanghai Xingtonq Telecommunication Science & Technology Co., Ltd.

<PAGE>

                                    EXHIBIT A
                              PURCHASER INFORMATION

1.       Address of Purchaser (business address):

         Unit 2502, 25/F, K. Wah Centre
         191 Java Road
         North Point, Hong Kong

2.       Telephone Number

3.       Type of Entity (Check One and Initial)

                           Individual

             C             Corporation

                           Partnership

                           Other (Please describe) ________________________

         For all purchasers other than  individuals,  please include evidence of
legal  existence,  such  as  articles  of  incorporation  or  other  constituent
documents,  and good standing certificate or similar document, each certified by
the appropriate governmental authority.

4. Name and  position  of  authorized  signatory:  For and on behalf of  SINOWAY
LIMITED.

The above information is true, correct and complete as of the date hereof.

-------------------
Authorized Signature(s)
Zuu Yi Wel
Executive Director

--------------------------------
Authorized Signatory

<PAGE>

-------------------------------------------------------------------------------
                    THE INTERNATIONAL BUSINESS COMPANIES ACT

-------------------------------------------------------------------------------
                                                      (CAP.291)

                CERTIFICATE OF INCORPORATION (SECTIONS 14 AND 15)

-------------------------------------------------------------------------------

No.  239085

The Registrar of Companies of the British Virgin Islands HEREBY CERTIFIES
pursuant to the International Business Companies Act, Cap. 291 that all the
requirements of the Act in respect of incorporation having been satisfied,

                                 SINOWAY LIMITED

is  incorporated  in the British  Virgin  Islands as an  International  Business
Company this 3rd day of July, 1997.

(Seal)                                       Given under my hand and seal at
                                             Road Town, in the Territory of the
                                             British Virgin Islands

CRTI0017                                                 REGISTRAR OF
COMPANIES

<PAGE>

                                    EXHIBIT B

                                LETTER OF INTENT

Confidential

MEMORANDUM  OF  UNDERSTANDING

Parties        Party  A:     CBCom  Inc.
               Party  B:     Shanghai  Stock  Exchange  Communication  Ca
               Party  C:     Shanghai  Xingtong  Telecommunications Science &
               Technology Co.  Ltd.

I.     COMPANY  OVERVIEW

CBCom Inc. is a Los Angeles based high-tech  communication  and investment firm.
It is  especially  keen on the design,  development,  operation  and  investment
activities surrounding the completion of an intelligent communication network In
addition the firm also provides research and development in accessory items used
by the network such as servers or end user platform.  Both the  management  team
and the  technical  personnel  have  extensive  experience of  constructing  and
operating  communication networks in North America and Asia.  Representative and
branch offices have been set up in Shanghai as well as Beijing.

Shanghai Stock Exchange  Communication  Co is a joint venture formed by Shanghai
Stock Exchange and Shanghai Stock Central Clearing Company.  The staff primarily
came from the department of communications  of the Shanghai Stock Exchange.  The
company's  services largely centers around its two-way satellite  system,  which
serves as a back up to DDN, to ensure  uninterrupted  transmission of stock data
and information.  The company also provides satellite network related technology
development management and other services. The following systems are part of the
network operation and management projects that the company is currently engaged:
one one-way broadcast  satellite system,  three two-way satellite  systems,  one
2000-line  switch,  Utilizing the above network  equipment the company  provides
connection  to over  2600  brokerages  to  ensure  daily  transmission  of stock
information.

Shanghai  Xingtong   Telecommunications   Science  and  Technology,   Ltd  is  a
telecommunications  company  held by  China  Broadcast  Satellite  Communication
Company,  which belongs to Ministry of Information  Industry. As a subsidiary of
China  Broadcast  Satellite  Communication  Company,  Xingtong  can tap into the
unique  satellite  resources  and  operating  license  owned by China  Broadcast
Satellite  Communication Company to provide specialized satellite  communication
services to its customers.  At the present Shanghai Xingtong  Telecommunications
Science and  Technology,  Ltd has helped  numerous  companies to build  national
networks that service  thousands of customers.  Among them are Hong Kong Digital
Communications  Ltd,  Shanghai Stock Exchange  Communications  Ltd, and Zhenzhou
Jicheng Information Technology Ltd. Furthermore, Xingtong has invested in a

<PAGE>

joint  effort with  America  based Wood  Company to provide wide band digital TV
transmission  to ABC, NBC,  FOX, HBO,  CCFV,  STV and other  Television  related
companies.   Xingtong   specializes  in  design  as  well  as   construction  of
communication networks.

II.     OBJECTIVE  OF  THIS  MOU

The  aforementioned  three  parties  have used over a year to perform a detailed
research  and  analysis  on the  potential  and  policy  with  regard to Chinese
Internet  market  This  research  reviewed  the  historical  development  of the
Internet in other mature markets around the globe such as the United States, and
compiled an  enormous  database on the  content  provision  services  within the
information industry.  Consequently, all three parties have reached consensus on
the following areas:

1.     The  current  and  future  potential  of  Chinese  Internet  market

2.     The  service  standard  of  Shanghai  Stock  Exchange's satellite network

3.     Key  factors  to  building  a  successful  commercial  ISP  in  China

4.     Initial concept and proposal for China Financial Network (CFN) as a joint
effort  of  the  three  parties

This MOU is hereby to record the  consensus to establish a firm  foundation  for
future cooperation.

III.     THE  CURRENT  AND  FUTURE  POTENTIAL  OF  CHINESE  INTERNET  MARKET

The rise of Internet  popularity  in the past few has  generated an  exceptional
growth  rate of 162% per  annum  that  astounded  the  world.  With moth than 50
million  users,  hundreds of billions of dollars of revenue are generated by new
opportunities  associated  with the  Internet.  Internet  usage has become a key
indicator for national  governments in assessing their  competitiveness  against
other  nations in the  information  industry.  Moreover,  the  Internet has left
indelible  marks in  reforming  the social  structure  and forced  revolutionary
changes. As information technology rapidly develops, information becomes readily
available,  which creates a wealth of opportunities while improving qualities of
life.  Geographical  and  economical  barriers are broken through the process of
information transfer. The forces of free market will finally champion making all
aspects of life such as employment,  education,  medicine,  easily accessible to
everyone.

The  Chinese  Internet  development  came  in at a  later  stage  of the  global
development  Nevertheless  is has  been  growing  with an  amazing  fervor.  The
development process can be broken into three phases.

The first phase  (199874994) can be called the Email phase.  During this period,
Email became a popular communication tool The ability to communicate with

<PAGE>

European  and North  American  countries  through  dial up service and email was
realized.  The second phase  (1994-1995)  began by farther  investment  from the
Department  of  Education  on  the  existing  education  and  research  network,
astonishingly  similar  to the early  stages of  development  in the us.  TCP/IP
connection was eventually  established on this network,  thus realizing the full
functionality of the Internet. The third phase (1995 to present) came soon after
Internet became accessible not only to the research and educational institution,
but also to  private  customers  through  commercial  151's.  In  1998,  Chinese
Internet users stood at 1.2 million and is projected to growth at 220% per annum
in the coming  years.  China has family  become an official  member of the world
Internet family.

Presently,  there are thirteen  international  gateways in China. They belong to
four networks.

Despite  the  promising  growth,  many  Chinese  Internet  users and ISP  become
increasingly concerned with the future development of Internet in China. Chinese
Internet development is unique in many aspects.  Specifically,  Chinese Internet
leapfrogged a number of development  stages as the other countries have, such as
PC penetration.  It can be said that China Internet came prematurely without all
the necessary  infrastructure elements in place. Therefore,  Chinese Internet is
missing  some basic  characteristics  of the Internet Yet the demand for further
development  and  maturity  continues  to collect  momentum.  As we examined the
potential of commercial  151's,  a set of barriers for continued  development of
Chinese Internet becomes evident.

1.     High  operating  expenses:
       -------------------------

     All ISPs in China that do not belong to China  Telecom must pay  outrageous
fees for leased lines thus incurring high cost and make it difficult for ISPs to
maintain  profitability.  International  connections are particularly expensive.
DDN lines are charged  not only at a monthly  rental  fee,  but also  additional
charge according to the amount of information  transmissions If an ISP intend to
build a national  network,  the long distance  rental charges are  prohibitively
high.  This  creates  the  dilemma  for many ISPs:  they are unable to invest in
expanding  the network as the number of  customers  increases.  While line lease
charges only consists of 5% of the total operating cost for a typical ISP in the
US, it often accounts for 70-80% of total operating cost for a ISP in China. The
financial  stress  leaves  very  little  room for the  Chinese  ISP to invest in
further development of the network

2.     Technology  investment
       ----------------------

     The  information  industry  characterizes  itself  through  the close  link
between  investment  and  technology.  It is  projected  that  Chinese  Internet
development  will require over 100 billion EMB by year 2000.  The investment gap
that many ISP confront is daunting.  On the other hand,  much of the information
on the  Internet  is in  English.  The  center  of  technology  development  and
application  is also  located in the US.  The  insufficient  funds and  backward
technology  caused by language barriers bode ill for the future Chinese Internet
development.

<PAGE>

3.     Content  market  opportunities:
       ------------------------------

     Many  Chinese   Internet   portals  (with  Chinese   languages)  have  been
unsuccessful  in  attracting  customers due to lackluster  content  design.  For
instance,  in the US on-line  banking,  stock trading and  purchasing  have long
become  popular  among  the  users  to  provide  additional  convenience  to the
customers.  Currently,  similar Chinese web sites are nearly non-existent As the
content of the Chinese web sites become more aggressive and creative, the market
potential will provide highly lucrative opportunities for ISPs.

IV.     THE  SERVICE  STANDARD  OF  SHANGHAI  STOCK  EXCHANGE  SATELLITE NETWORK

Shanghai  Stock  Exchange  (SSE)  became  fully  operations  in 1990  and is the
largest,  most well equipped,  and best organized  stock exchange in China today
with the widest reach in community  (nearly 19 million  customers).  SSE's daily
transaction  volume  exceeds 10 million.  Furthermore,  SSE operates a satellite
network with more than 3100  receiving  stations  and owns the largest  exchange
lobby in Asia.

SSE's  satellite  system is the most advanced  satellite  system with the widest
geographical  coverage as well as largest  customer  base in China.  It has been
approved and licensed with the right to operate VSAT related  services and other
value adding communication services.

SSE's satellite system includes three systems:  VAST, SCPC and TDM/TDMA. It also
provides  backup for DDN. Since the stock exchange only operates four hours each
day, the utilization of this network is especially low. In addition, the network
offers the following features:

1.     Network  topology:  The  main  station and the _________.  This method of
       -----------------
satellite  network is beat used for digital  communication and exactly meets the
requirement of Internet communication.

2.     Network  scale:  Currently  the network covers all Chinese provinces with
       --------------
the exception of Taiwan and has 33 key nodes with over 1000 customer  connected.
Each of the  nodes  has  comprehensive  satellite  communication  equipment  and
capability including switches, and highly competent technical support personnel

3.     Price  and performance ratio (compare to X.25 and DDN net): Among similar
       ----------------------------------------------------------
speeds,  satellite network is comparable to XIS and DDN net in data transmission
speed.  Because XIS and DDN net use fiber optic cables,  satellite  transmission
incurs a slightly longer delay. However, the delay bears no significance in data
transmission.  The error rate of satellite  transmission is between 1(P and 108,
which  is  similar  to  that  of DDN  error  rate.  Moreover,  due to the  stock
exchange's particular function, a high degree of reliability was required since

<PAGE>

the design of the  network The SSE  network  has double  backup  with  automatic
switching capability and has proved to be highly reliable in the last five years
of operation The network survived many severe weather  conditions,  as well as a
number of market  irregularities  such as sudden volume surge.  The  operational
expense comparison is attached as well (based on 64 Kbps):

     Satellite  network     42,000  RMB/  year
     DDN  net          145,000  RMB/year
     X.25               163,000  RMB/  year

V.     KEY  FACTORS  TO  BUILDING  A  SUCCESSFUL  COMMERCIAL  ISP  IN  CHINA

This  analysis  demonstrates  not only the factors  that would make a successful
commercial  ISP in  China,  but also why SSE  satellite  network  is  especially
fitting for such a task

1. Independent  national network:  an independent  network that does not rely on
the network  provided by China Telecom,  thus avoiding the  outrageous  fees and
cost is critical to guarantee  profitability for any ISP in China. SSE satellite
network was initially  designed and  constructed  precisely for this  objective.
After years of development,  the network now operates independent and covers all
regions in China.

2. Substantive  customer base: customer base is the livelihood of any ISP. There
are  currently 17 million  investors  who have  accounts at SSE. The majority of
these  investors  receive  information  and trade from various  nodes on the SSE
network.  The brokerages are direct  customers and the investors  constitute one
the most  substantive  and stable  customer base.  These  investors are prone to
adopt new  technology  as they are  generally  more  educated  than the  average
population.

3. Attractive  content creative and interesting  content is a key to the success
of any ISP. Stock trading has become a focal point in the Chinese  economic life
Many industries have tapped into this to generate new commercial opportunity for
themselves.  For example,  in the last few years, the number of stock pagers has
rocketed  through the roof to  millions.  Real time stock  quotes,  information,
analyst reports and most of web trading will attract millions to visit the site.

VI.     INITIAL  CONCEPT  AND  PROPOSAL  OF  CNN  AS  A  JOINT  EFFORT

CFN is the  ultimate - for the joint  effort It will begin more like an Intranet
then expand to become a true Internet From  construction to operations there are
two major phases CEN I, CEN II which are detailed as follows:

CFN  I:  This is a professional Intranet that is based in Hong Kong. The service
------
collects and compiles global financial  market  information with real time stock
data as well as historical data for analysis. Most importantly,  all information
will be broadcasted through the SSE satellite network in Chinese using

<PAGE>

proprietary  software to brokerages and professional  investors.  It will differ
from Dow Jones and Reuters in that the information will be completely in Chinese
at a much lower rate.  Our market  research  reveals  that as China's  financial
market  develops,  ft will  eventually  become an  integral  part of the  global
financial market Financial information from other parts of the world, especially
Hong Kong Southeast Asia will impact the financial performances of Chinese stock
market  Already  more  than 95% of the  brokerages  would  like to  access  this
information. However the price tag for Reuters and Dow Jones services are simply
too much to bear. If the existing  network allows  transmission of similar sorts
of information and it requires no additional  installation of other equipment it
sure will be welcomed by many brokerages.

CFN II: This network will create a customer interface directly to the individual
------
customers, thus equivalent to a commercial ISP. The service will include various
value added services such as real time stock data and web trading. Utilizing the
current network with over a thousand  connection nodes, the network will be able
to provide Email and other Internet service while allowing real time web trading
to its  customers.  Web trading is an unique  feature that this network  offers,
since the SSE is the sole clearing and settlement  agency for its stocks.  Thus,
only SSE network is able to realize true web trading through SSE.

The roles and responsibilities of the three parties will vary as well.

Party A will be  primarily  responsible  for  collecting  and  compiling  global
financial information,  providing funds for network reconstruction and assisting
software  development  in the first  phase.  In the second  phase,  party A will
provide funds to modify  connection nodes,  development of management  software,
and operation of the Internet sites (e.g. content design).

Party B will be primarily  responsible for network  security and operation while
coordinating with various brokerage firms to maintain market position and direct
network design.

Party C will  participate in network  design and management to ensure  efficient
utilization of the satellite network The majority of its operation will focus on
construction of the network in the beginning and software development at a later
stage.

This MOU will  serve as the  founding  principles  for the joint  effort  Formal
feasibility  study and  business  plan  will be drawn to  establish  the  actual
structure to realize the proposed network As soon as the structure is finalized,
we will seek  professional  consulting  firms to conduct  detailed  analysis  to
identify optimal marketing, organization and technology management strategies.

All parties have agreed that the interest of each party in this joint venture is
allocated as follow: Party A 70%; party B 20%; party C 10%.

<PAGE>

VII.  FINAL  REMARKS

As one of the most significant document indicating  commitment to form the joint
venture  aforementioned,  the MOU is only effective after all three parties have
signed.

Party  A:               CBCCom  Inc.

                         /x/

Party  B:               Shanghai  Stock  Exchange  Communication  Co.

                         /x/   General Manager

Party  C:          Shanghai Xingtong Telecommunications Science & Technology Co.
                   Ltd
                         /x/   President

January  31,  1999

<PAGE>

                                    EXHIBIT C

                            DEFINITION OF U.S. PERSON

ss. 230.902         (o) U.S. Person.

(1)      "U.S. person" means:

         (i)      any natural person resident in the United States;

         (ii)     any partnership or corporation organized or incorporated
                  under the laws of the United States;

         (iii)    any estate or which any executor or administrator
                  is a U.S. person;

         (iv)     any trust of which any trustee is a U.S. person;

         (v)      any agency or branch of a foreign entity located in the
                  United States;

         (vi)     any  non-discretionary  account or similar account (other
                  than an estate or trust) held by a dealer or other
                  fiduciary for the benefit or account of a U.S. person;

         (vii)    any  discretionary  account or similar  account (other than an
                  estate  or  trust)  held  by  a  dealer  or  other   fiduciary
                  organized, incorporated, or (if an individual) resident in the
                  United States; and

         (viii)   any partnership or corporation if:

                  (A)      organized or incorporated under the laws of any
                           foreign jurisdiction; and
                  (B)      formed by a U.S.  person  principally  for the
                           purpose of  investing  in  securities  not
                           registered  under the Act,  unless it is organized or
                           incorporated,  and owned, by accredited investors (as
                           defined in Rule 501(a) under the Act (ss. 230.50 1(a)
                           of  this  chapter))  who  are  not  natural  persons,
                           estates or trusts.

(2)      Notwithstanding  paragraph  (o)(1) of this section,  any  discretionary
         account or similar account (other than an estate or trust) held for the
         benefit  or  account  of  a  non-U.S.  person  by  a  dealer  or  other

<PAGE>

         professional fiduciary organized,  incorporated,  or (if an individual)
         resident in the United States shall not be deemed a "U.S. person."

(3)      Notwithstanding  paragraph (o)(1) of this section,  any estate of which
         any  professional  fiduciary  acting as executor or  administrator is a
         U.S. person shall not be deemed a U.S. person if:

         (i)      an executor or administrator  of the estate who is not a
                  U.S. person has sole or shared  investment discretion
                  with respect to the assets of the estate; and
         (ii)     the estate is governed by foreign law.

(4)      Notwithstanding  paragraph  (o)(1) of this section,  any trust of which
         any professional fiduciary acting as trustee is a U.S. person shall not
         be deemed a U.S.  person if a trustee who is not a U.S. person has sole
         or shared investment  discretion with respect to the trust assets,  and
         no  beneficiary of the trust (and no settlor if the trust is revocable)
         is a U.S. person.

(5)      Notwithstanding  paragraph (o)(1) of this section,  an employee benefit
         plan  established  and  administered  in  accordance  with the law of a
         country  other  than the  United  States and  customary  practices  and
         documentation of such country shall not be deemed a U.S. Person.

(6)      Notwithstanding  paragraph (o)(1) of this section, any agency or branch
         of a U.S.  person located outside the United States shall not be deemed
         a "U.S. person" if:

         (i)      the agency or branch operates for valid business reasons; and

         (ii)     the agency or branch is engaged in the  business of  insurance
                  or banking and is subject to substantive  insurance or banking
                  regulation, respectively, in the jurisdiction where located.

(7)      The   international   Monetary   Fund,  the   International   Bank  for
         Reconstruction and Development,  the  Inter-American  Development Bank,
         the Asian  Development  Bank, the African  Development Bank, the United
         Nations,  and their  agencies,  affiliates and pension  plans,  and any
         other similar international organizations,  their agencies,  affiliates
         and pension plans shall not be deemed "U.S. persons."
<PAGE>

         (p)      United  States.   "United  States"  means  the  United  States
                  of  America,  its  territories  and possessions, any State
                  of the United States, and the District of Columbia.

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