Document:

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                                                                   EXHIBIT 10.12
                                                                   -------------
                           INDEMNIFICATION AGREEMENT

          This Agreement is made as of the _____ day of __________ 2000, by and
between Proton Energy Systems, Inc., a Delaware corporation (the "Corporation),
and ____________________ ("Indemnitee"), a director or officer of the
Corporation.

          WHEREAS, it is essential to the Corporation to retain and attract as
directors and officers the most capable persons available, and

          WHEREAS, the substantial increase in corporate litigation subjects
directors and officers to expensive litigation risks at the same time that the
availability of directors' and officers' liability insurance has been severely
limited, and

          WHEREAS, it is now and has always been the express policy of the
Corporation to indemnify its directors and officers so as to provide them with
the maximum possible protection permitted by law, and

          WHEREAS, Indemnitee does not regard the protection available under the
Corporation's Certificate of Incorporation and insurance as adequate in the
present circumstances, and may not be willing to serve or continue to serve as a
director or officer without adequate protection, and

          WHEREAS, the Corporation desires Indemnitee to serve, or continue to
serve, as a director or officer of the Corporation.

          NOW THEREFORE, the Corporation and Indemnitee do hereby agree as
follows:

          1.   Agreement to Serve.  Indemnitee agrees to serve or continue to
               ------------------
serve as a director or officer of the Corporation for so long as Indemnitee is
duly elected or appointed or until such time as Indemnitee tenders Indemnitee's
resignation in writing.

          2.   Definitions.  As used in this Agreement:
               -----------

               (a)  The term "Proceeding" shall include any threatened, pending
or completed action, suit, arbitration, alternative dispute resolution
proceeding, administrative hearing or other proceeding, whether brought by or in
the right of the Corporation or otherwise and whether of a civil, criminal,
administrative or investigative nature, and any appeal therefrom.

               (b)  The term "Corporate Status" shall mean the status of a
person who is or was a director or officer of the Corporation, or is or was
serving, or has agreed to serve, at the request of the Corporation, as a
director, officer, partner, trustee, member, employee or agent of another
corporation, partnership, joint venture, trust, limited liability company or
other enterprise.

               (c)  The term "Expenses" shall include, without limitation,
attorneys' fees, retainers, court costs, transcript costs, fees and expenses of
experts, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees and other disbursements or
expenses of the types customarily incurred in connection with investigations,
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judicial or administrative proceedings or appeals, but shall not include the
amount of judgments, fines or penalties against Indemnitee or amounts paid in
settlement in connection with such matters.

               (d)  References to "other enterprise" shall include employee
benefit plans; references to "fines" shall include any excise tax assessed with
respect to any employee benefit plan; references to "serving at the request of
the Corporation" shall include any service as a director, officer, employee or
agent of the Corporation which imposes duties on, or involves services by, such
director, officer, employee, or agent with respect to an employee benefit plan,
its participants, or beneficiaries; and a person who acted in good faith and in
a manner such person reasonably believed to be in the interests of the
participants and beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner "not opposed to the best interests of the Corporation" as
referred to in this Agreement.

          3.   Indemnification in Third-Party Proceedings.  The Corporation
               ------------------------------------------
shall indemnify Indemnitee in accordance with the provisions of this Paragraph 3
if Indemnitee was or is a party to or threatened to be made a party to or
otherwise involved in any Proceeding (other than a Proceeding by or in the right
of the Corporation to procure a judgment in its favor) by reason of the
Indemnitee's Corporate Status or by reason of any action alleged to have been
taken or omitted in connection therewith, against all Expenses, judgments,
fines, penalties and amounts paid in settlement actually and reasonably incurred
by Indemnitee or on his behalf in connection with such Proceeding, if Indemnitee
acted in good faith and in a manner which Indemnitee reasonably believed to be
in, or not opposed to, the best interests of the Corporation and, with respect
to of any criminal Proceeding, had no reasonable cause to believe that his
conduct was unlawful. The termination of any Proceeding by judgment, order,
settlement, conviction or upon a plea of nolo contendere or its equivalent,
                                         ---- ----------
shall not, of itself, create a presumption that Indemnitee did not act in good
faith and in a manner which the Indemnitee reasonably believed to be in, or not
opposed to, the best interests of the Corporation, and, with respect to any
criminal Proceeding, had reasonable cause to believe that his conduct was
unlawful.

          4.   Indemnification in Proceedings by or in the Right of the
               --------------------------------------------------------
Corporation.  The Corporation shall indemnify Indemnitee in accordance with the
-----------
provisions of this Paragraph 4 if Indemnitee is a party to or threatened to be
made a party to or otherwise involved in any Proceeding by or in the right of
the Corporation to procure a judgment in its favor by reason of the Indemnitee's
Corporate Status or by reason of any action alleged to have been taken or
omitted in connection therewith, against all Expenses and, to the extent
permitted by law, amounts paid in settlement actually and reasonably incurred by
Indemnitee or on his behalf in connection with such Proceeding, if he acted in
good faith and in a manner which he reasonably believed to be in, or not opposed
to, the best interests of the Corporation, except that no indemnification shall
be made under this Paragraph 4 in respect of any claim, issue, or matter as to
which Indemnitee shall have been adjudged to be liable to the Corporation,
unless and only to the extent that the Court of Chancery of Delaware or the
court in which such action or suit was brought shall determine upon application
that, despite the adjudication of such liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity for such Expenses as the Court of Chancery or such other court shall
deem proper.

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          5.   Exceptions to Right of Indemnification.  Notwithstanding anything
               --------------------------------------
to the contrary in this Agreement, except as set forth in Paragraph 10, the
Corporation shall not indemnify the Indemnitee in connection with a Proceeding
(or part thereof) initiated by the Indemnitee unless the initiation thereof was
approved by the Board of Directors of the Corporation. Notwithstanding anything
to the contrary in this Agreement, the Corporation shall not indemnify the
Indemnitee to the extent the Indemnitee is reimbursed from the proceeds of
insurance, and in the event the Corporation makes any indemnification payments
to the Indemnitee and the Indemnitee is subsequently reimbursed from the
proceeds of insurance, the Indemnitee shall promptly refund such indemnification
payments to the Corporation to the extent of such insurance reimbursement.

          6.   Indemnification of Expenses of Successful Party.  Notwithstanding
               -----------------------------------------------
any other provision of this Agreement, to the extent that Indemnitee has been
successful, on the merits or otherwise, in defense of any Proceeding or in
defense of any claim, issue or matter therein, Indemnitee shall be indemnified
against all Expenses incurred by him or on his behalf in connection therewith.
Without limiting the foregoing, if any Proceeding or any claim, issue or matter
therein is disposed of, on the merits or otherwise (including a disposition
without prejudice), without (i) the disposition being adverse to the Indemnitee,
(ii) an adjudication that the Indemnitee was liable to the Corporation, (iii) a
plea of guilty or nolo contendere by the Indemnitee, (iv) an adjudication that
                  ---------------
the Indemnitee did not act in good faith and in a manner he reasonably believed
to be in or not opposed to the best interests of the Corporation, and (v) with
respect to any criminal proceeding, an adjudication that the Indemnitee had
reasonable cause to believe his conduct was unlawful, the Indemnitee shall be
considered for the purposes hereof to have been wholly successful with respect
thereto.

          7.   Notification and Defense of Claim.  As a condition precedent to
               ---------------------------------
his right to be indemnified, the Indemnitee must notify the Corporation in
writing as soon as practicable of any Proceeding for which indemnity will or
could be sought by him and provide the Corporation with a copy of any summons,
citation, subpoena, complaint, indictment, information or other document
relating to such Proceeding with which he is served. With respect to any
Proceeding of which the Corporation is so notified, the Corporation will be
entitled to participate therein at its own expense and/or to assume the defense
thereof at its own expense, with legal counsel reasonably acceptable to the
Indemnitee. After notice from the Corporation to the Indemnitee of its election
so to assume such defense, the Corporation shall not be liable to the Indemnitee
for any legal or other expenses subsequently incurred by the Indemnitee in
connection with such claim, other than as provided below in this Paragraph 7.
The Indemnitee shall have the right to employ his own counsel in connection with
such claim, but the fees and expenses of such counsel incurred after notice from
the Corporation of its assumption of the defense thereof shall be at the expense
of the Indemnitee unless (i) the employment of counsel by the Indemnitee has
been authorized by the Corporation, (ii) counsel to the Indemnitee shall have
reasonably concluded that there may be a conflict of interest or position on any
significant issue between the Corporation and the Indemnitee in the conduct of
the defense of such action or (iii) the Corporation shall not in fact have
employed counsel to assume the defense of such action, in each of which cases
the fees and expenses of counsel for the Indemnitee shall be at the expense of
the Corporation, except as otherwise expressly provided by this Agreement. The
Corporation shall not be entitled, without the consent of the Indemnitee, to
assume the defense of any claim brought by or in the right of the Corporation or
as to which counsel for the Indemnitee shall have

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reasonably made the conclusion provided for in clause (ii) above. The
Corporation shall not be required to indemnify the Indemnitee under this
Agreement for any amounts paid in settlement of any Proceeding effected without
its written consent. The Corporation shall not settle any Proceeding in any
manner which would impose any penalty or limitation on Indemnitee without
Indemnitee's written consent. Neither the Corporation nor the Indemnitee will
unreasonably withhold their consent to any proposed settlement.

          8.   Advancement of Expenses.  Subject to the provisions of
               -----------------------
Paragraph 9 below, in the event that the Corporation does not assume the defense
pursuant to Paragraph 7 of this Agreement of any Proceeding to which the
Indemnitee was or is a party or is threatened to be made a party by reason of
his Corporate Status or by reason of any action alleged to have been taken or
omitted in connection therewith and of which the Corporation receives notice
under this Agreement, any Expenses incurred by the Indemnitee or on his behalf
in defending such Proceeding shall be paid by the Corporation in advance of the
final disposition of such Proceeding; provided, however, that the payment of
                                      --------  -------
such Expenses incurred by the Indemnitee or on his behalf in advance of the
final disposition of such Proceeding shall be made only upon receipt of an
undertaking by or on behalf of the Indemnitee to repay all amounts so advanced
in the event that it shall ultimately be determined that the Indemnitee is not
entitled to be indemnified by the Corporation as authorized in this Agreement.
Such undertaking shall be accepted without reference to the financial ability of
the Indemnitee to make repayment.

          9.   Procedure for Indemnification.  In order to obtain
               -----------------------------
indemnification or advancement of Expenses pursuant to Paragraphs 3, 4, 6 or 8
of this Agreement, Indemnitee shall submit to the Corporation a written request,
including in such request such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to
what extent Indemnitee is entitled to indemnification or advancement of
Expenses. Any such indemnification or advancement of Expenses shall be made
promptly, and in any event within 60 days after receipt by the Corporation of
the written request of the Indemnitee, unless with respect to requests under
Paragraphs 3, 4 or 8 the Corporation determines within such 60-day period that
such Indemnitee did not meet the applicable standard of conduct set forth in
Paragraph 3 or 4, as the case may be. Such determination, and any determination
that advanced Expenses must be repaid to the Corporation, shall be made in each
instance (a) by a majority vote of the directors of the Corporation consisting
of persons who are not at that time parties to the Proceeding ("disinterested
directors"), whether or not a quorum, (b) by a committee of disinterested
directors designated by a majority vote of disinterested directors, whether or
not a quorum, (c) if there are no disinterested directors, or if the
disinterested directors so direct, by independent legal counsel (who may, to the
extent permitted by applicable law, be regular legal counsel to the Corporation)
in a written opinion to the Board, or (d) by the stockholders.

          10.  Remedies.  The right to indemnification or advancement of
               --------
Expenses as provided by this Agreement shall be enforceable by the Indemnitee in
any court of competent jurisdiction if the Corporation denies such request, in
whole or in part, or if no disposition thereof is made within the 60-day period
referred to above in Paragraph 9. Unless otherwise required by law, the burden
of proving that indemnification is not appropriate shall be on the Corporation.
Neither the failure of the Corporation to have made a determination prior to the
commencement of such action that indemnification is proper in the circumstances
because Indemnitee has met the

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applicable standard of conduct, nor an actual determination by the Corporation
pursuant to Paragraph 9 that Indemnitee has not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that
Indemnitee has not met the applicable standard of conduct. Indemnitee's expenses
(of the type described in the definition of "Expenses" in Paragraph 2(c))
reasonably incurred in connection with successfully establishing his right to
indemnification, in whole or in part, in any such Proceeding shall also be
indemnified by the Corporation.

          11.  Partial Indemnification.  If Indemnitee is entitled under any
               -----------------------
provision of this Agreement to indemnification by the Corporation for some or a
portion of the Expenses, judgments, fines, penalties or amounts paid in
settlement actually and reasonably incurred by him or on his behalf in
connection with any Proceeding but not, however, for the total amount thereof,
the Corporation shall nevertheless indemnify Indemnitee for the portion of such
Expenses, judgments, fines, penalties or amounts paid in settlement to which
Indemnitee is entitled.

          12.  Subrogation.  In the event of any payment under this Agreement,
               -----------
the Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all papers required and take
all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Corporation to bring suit to enforce
such rights.

          13.  Term of Agreement.  This Agreement shall continue until and
               -----------------
terminate upon the later of (a) six years after the date that Indemnitee shall
have ceased to serve as a director or officer of the Corporation or, at the
request of the Corporation, as a director, officer, partner, trustee, member,
employee or agent of another corporation, partnership, joint venture, trust,
limited liability company or other enterprise or (b) the final termination of
all Proceedings pending on the date set forth in clause (a) in respect of which
Indemnitee is granted rights of indemnification or advancement of Expenses
hereunder and of any proceeding commenced by Indemnitee pursuant to Paragraph 10
of this Agreement relating thereto.

          14.  Indemnification Hereunder Not Exclusive.  The indemnification and
               ---------------------------------------
advancement of Expenses provided by this Agreement shall not be deemed exclusive
of any other rights to which Indemnitee may be entitled under the Certification
of Incorporation, the By-Laws, any agreement, any vote of stockholders or
disinterested directors, the General Corporation Law of Delaware, any other law
(common or statutory), or otherwise, both as to action in his official capacity
and as to action in another capacity while holding office for the Corporation.
Nothing contained in this Agreement shall be deemed to prohibit the Corporation
from purchasing and maintaining insurance, at its expense, to protect itself or
the Indemnitee against any expense, liability or loss incurred by it or him in
any such capacity, or arising out of his status as such, whether or not the
Indemnitee would be indemnified against such expense, liability or loss under
this Agreement; provided that the Corporation shall not be liable under this
Agreement to make any payment of amounts otherwise indemnifiable hereunder if
and to the extent that Indemnitee has otherwise actually received such payment
under any insurance policy, contract, agreement or otherwise.

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          15.  No Special Rights.  Nothing herein shall confer upon Indemnitee
               -----------------
any right to continue to serve as an officer or director of the Corporation for
any period of time or at any particular rate of compensation.

          16.  Savings Clause.  If this Agreement or any portion thereof shall
               --------------
be invalidated on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify Indemnitee as to Expenses, judgments,
fines, penalties and amounts paid in settlement with respect to any Proceeding
to the full extent permitted by any applicable portion of this Agreement that
shall not have been invalidated and to the fullest extent permitted by
applicable law.

          17.  Counterparts.  This Agreement may be executed in any number of
               ------------
counterparts, each of which shall constitute the original.

          18.  Successors and Assigns.  This Agreement shall be binding upon the
               ----------------------
Corporation and its successors and assigns and shall inure to the benefit of the
estate, heirs, executors, administrators and personal representatives of
Indemnitee.

          19.  Headings.  The headings of the paragraphs of this Agreement are
               --------
inserted for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction thereof.

          20.  Modification and Waiver.  This Agreement may be amended from time
               -----------------------
to time to reflect changes in Delaware law or for other reasons. No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. No waiver of any of the provisions of
this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof nor shall any such waiver constitute a continuing waiver.

          21.  Notices.  All notices, requests, demands and other communications
               -------
hereunder shall be in writing and shall be deemed to have been given (i) when
delivered by hand or (ii) if sent by reputable nationwide overnight courier
service, one day after the date on which it is so sent:

          (a) if to the Indemnitee, to:

          (b) if to the Corporation, to:     Proton Energy Systems, Inc.
                                             Attn:  President
                                             50 Inwood Road
                                             Rocky Hill, CT  06067

              with a copy to:                Hale and Dorr LLP
                                             Attn:  William F. Winslow, Esq.
                                             Reston Town Center
                                             11951 Freedom Drive
                                             Reston, VA  20190

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<PAGE>

or to such other address as may have been furnished to Indemnitee by the
Corporation or to the Corporation by Indemnitee, as the case may be.

          22.  Applicable Law.  This Agreement shall be governed by, and
               --------------
construed and enforced in accordance with, the laws of the State of Delaware.

          23.  Enforcement.  The Corporation expressly confirms and agrees that
               -----------
it has entered into this Agreement in order to induce Indemnitee to continue to
serve as a director of the Corporation, and acknowledges that Indemnitee is
relying upon this Agreement in continuing in such capacity.

          24.  Entire Agreement.  This Agreement sets forth the entire
               ----------------
agreement of the parties hereto in respect of the subject matter contained
herein and supercedes all prior agreements, whether oral or written, by any
officer, employee or representative of any party hereto in respect of the
subject matter contained herein; and any prior agreement of the parties hereto
in respect of the subject matter contained herein is hereby terminated and
cancelled. For avoidance of doubt, the parties confirm that the foregoing does
not apply to or limit the Indemnitee's rights under Delaware law or the
Corporation's Certificate of Incorporation or bylaws.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

                                             PROTON ENERGY SYSTEMS, INC.

                                             By: ______________________________
                                                 Name:
                                                 Title:

                                             INDEMNITEE

                                             ______________________________
                                             Name:

                                       7<PAGE>

                                                                     EXHIBIT 4.3

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "1933 ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT
BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS IN ACCORDANCE WITH THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR SOME OTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS
AVAILABLE WITH RESPECT THERETO.

                       PREFERRED STOCK PURCHASE WARRANT

Warrant No. _________

                             PLUMTREE SOFTWARE INC

                           Void after March 31, 2004

     1.   Issuance. This Warrant is issued to LIGHTHOUSE CAPITAL PARTNERS II,
L.P. by PLUMTREE SOFTWARE, INC., a California corporation (hereinafter with its
successors called the "Company").

     2.   Purchase Price; Number of Shares. The registered holder of this
Warrant (the "Holder"), commencing on the date hereof, is entitled upon
surrender of this Warrant with the subscription form annexed hereto duly
executed, at the principal office of the Company, to purchase from the Company
the following securities (collectively, the "Shares") at a price per share (the
"Next Round Purchase Price") equal to the price per share of the Company's next
round of preferred stock raising at least $2,500,000 upon substantially the
terms set forth in Exhibit C (the "Next Round"), that number of fully paid and
nonassessable shares of preferred stock offered in the Next Round (the "Next
Round Preferred Stock") equal to $14,000 divided by the Next Round Purchase
Price; provided however, that if (a) the Next Round does not close on or before
May 31, 1997, or (b) there is a Reorganization (defined below) on or before May
31, 1997, then Holder shall be entitled to purchase, at a price per share equal
to $0.58 (the "Series A Purchase Price"), 24,137 fully paid and nonassessable
shares of Series A Preferred Stock, no par value, of the Company (the "Series A
Preferred Stock").

     (The Next Round Purchase Price and the Series A Purchase Price are
sometimes referred to herein collectively, as the "Purchase Price" and the Next
Round Preferred Stock and the Series A Preferred Stock are sometimes referred to
herein collectively, as the "Preferred Stock"). Until such time as this Warrant
is exercised in full or expires, the Purchase Price and the securities issuable
upon exercise of this Warrant are subject to adjustment as hereinafter provided.
The person or persons on whose name or names any certificate representing shares
of Preferred Stock is issued hereunder shall be deemed to have become the holder
of record of the shares represented thereby as at the close of business on the
date this Warrant is exercised with respect to such shares, whether or not the
transfer books of the Company shall be closed.

     3.   Payment of Purchase Price. The Purchase Price may be paid (i) in cash
or by check, (ii) by the surrender by the Holder to the Company of any
promissory notes or other obligations issued by the Company, with all such notes
and obligations so surrendered being credited against the Purchase Price in an
amount equal to the principal amount thereof plus accrued interest to the date
of surrender, or (iii) by any combination of the foregoing.

     4.   Net Issue Election.  The Holder may elect to receive, without the
payment by the Holder of any additional consideration, shares of Preferred Stock
equal to the value of this Warrant or any portion hereof by the surrender of
this Warrant or such portion to the Company, with the net issue election notice
annexed hereto duly
<PAGE>

executed, at the principal office of the Company. Thereupon, the Company shall
issue to the Holder such number of fully paid and nonassessable shares of
Preferred Stock as is computed using the following formula:

                                  X = Y(A-B)
                                      ------
                                       A

where:    X =  the number of shares of Preferred Stock to be issued to the
Holder pursuant to this Section 4.

               Y =  the number of shares of Preferred Stock covered by this
                    Warrant in respect of which the net issue election is made
                    pursuant to this Section 4.

               A =  the Fair Market Value (defined below) of one share of
                    Preferred Stock, as determined at the time the net issue
                    election is made pursuant to this Section 4.

               B =  the Purchase Price in effect under this Warrant at the time
                    the net issue election is made pursuant to this Section 4.

"Fair Market Value" of a share of Preferred Stock (or Common Stock if the
Preferred Stock has been automatically converted into Common Stock) as of a
particular date (the "Determination Date") shall mean:

               (i)  If the net issue election is made in connection with and
          contingent upon the closing of the sale of the Company's Common Stock
          to the public in a public offering pursuant to a Registration
          Statement under the Act (a "Public Offering"), and if the Company's
          Registration Statement relating to such Public Offering ("Registration
          Statement") has been declared effective by the SEC, then the initial
          "Price to Public" specified in the final prospectus with respect to
          such offering multiplied by the number of shares of Common Stock into
          which each share of Preferred Stock is then convertible.

               (ii) If the net issue election is not made in connection with and
          contingent upon a Public Offering, then as follows:

                    (A)  If traded on a securities exchange or the Nasdaq
               National Market, the fair market value of the Common Stock shall
               be deemed to be the average of the closing or last reported sale
               prices of the Common Stock on such exchange or market over the
               30-day period ending five business days prior to the
               Determination Date, and the fair market value of the Preferred
               Stock shall be deemed to be such fair market value of the Common
               Stock multiplied by the number of shares of Common Stock into
               which each share of Preferred Stock is then convertible;

                    (B)  If otherwise traded in an over-the-counter market, the
               fair market value of the Common Stock shall be deemed to be the
               average of the closing ask prices of the Common Stock over the
               30-day period ending five business days prior to the
               Determination Date, and the fair market value of the Preferred
               Stock shall be deemed to be such fair market value of the Common
               Stock multiplied by the number of shares of Common Stock into
               which each share of Preferred Stock is then convertible; and

                    (C)  If there is no public market for the Common Stock, then
               fair market value shall be determined in good faith by the
               Company's Board of Directors.

          5.   Partial Exercise. This Warrant may be exercised in part, and the
Holder shall be entitled to receive a new warrant, which shall be dated as of
the date of this Warrant, covering the number of shares in respect of which this
Warrant shall not have been exercised.
<PAGE>

     6.   Fractional Shares. In no event shall any fractional share of Preferred
Stock be issued upon any exercise of this Warrant. If, upon exercise of this
Warrant as an entirety, the Holder would, except as provided in this Section 6,
be entitled to receive a fractional share of Preferred Stock, then the Company
shall make a cash payment therefore based upon the Purchase Price then in
effect.

     7.   Expiration Date; Automatic Exercise. This Warrant shall expire at the
close of business on March 31, 2004, and shall be void thereafter.
Notwithstanding the foregoing, this Warrant shall automatically be deemed to be
exercised in full pursuant to the provisions of Section 4 hereof, without any
further action on behalf of the Holder, immediately prior to the time this
Warrant would otherwise expire pursuant to the preceding sentence.

     8.   Reserved Shares; Valid Issuance. The Company covenants that it will at
all times from and after June 5, 1997 reserve and keep available such number of
its authorized shares of Preferred Stock and Common Stock, no par value, of the
Company (the "Common Stock"), free from all preemptive or similar rights
therein, as will be sufficient to permit, respectively, the exercise of this
Warrant in full and the conversion into shares of Common Stock of all shares of
Preferred Stock receivable upon such exercise. The Company further covenants
that such shares as may be issued pursuant to such exercise and/or conversion
will, upon issuance, be duly and validly issued, fully paid and nonassessable
and free from all taxes, liens and charges with respect to the issuance thereof.

     9.   Stock Splits and Dividends. If after the date hereof the Company shall
subdivide the Preferred Stock, by split-up or otherwise, or combine the
Preferred Stock, or issue additional shares of Preferred Stock in payment of a
stock dividend on the Preferred Stock, the number of shares of Preferred Stock
issuable on the exercise of this Warrant shall forthwith be proportionately
increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination, and the Purchase Price shall forthwith
be proportionately decreased in the case of a subdivision or stock dividend, or
proportionately increased in the case of a combination.

     10.  Adjustments for Diluting Issuances. The other antidilution rights
applicable to the Preferred Stock and the Common Stock of the Company are set
forth in the Amended and Restated Articles of Incorporation, as amended from
time to time (the "Articles"), a true and complete copy in its current form
which is attached hereto as Exhibit A. Such rights shall not be restated,
amended or modified in any manner which effects the Holder differently than the
holders of Series A Preferred without such Holder's prior written consent. The
Company shall promptly provide the Holder hereof with any restatement, amendment
or modification to the Articles promptly after the same has been made.

     11.  Mergers and Reclassifications. If after the date hereof the Company
shall enter into any Reorganization (as hereinafter defined), then the Holder
shall thereafter have the right to purchase, at a total price not to exceed that
payable upon the exercise of this Warrant in full, the kind and amount of shares
of stock and other securities and property receivable upon such Reorganization
by a holder of the number of shares of Preferred Stock which might have been
purchased by the Holder immediately prior to such Reorganization, and in any
such case appropriate provisions shall be made with respect to the rights and
interest of the Holder to the end that the provisions hereof (including without
limitation, provisions for the adjustment of the Purchase Price and the number
of shares issuable hereunder and the provisions relating to the net issue
election) shall thereafter be applicable in relation to any shares of stock or
other securities and property thereafter deliverable upon exercise hereof. For
the purposes of this Section 11, the term "Reorganization" shall include without
limitation any reclassification, capital reorganization or change of the
Preferred Stock (other than as a result of a subdivision, combination or stock
dividend provided for in Section 9 hereof or a change in par value or from par
value to no par value or no par value to par value), or any consolidation of the
Company with, or merger of the Company into, another corporation or other
business organization (other than a merger in which the Company is the surviving
corporation and which does not result in any reclassification or change of the
outstanding Preferred Stock), or any sale or conveyance to another corporation
or other business organization of all or substantially all of the assets of the
Company.
<PAGE>

     12.  Certificate of Adjustment. Whenever the Purchase Price is adjusted, as
herein provided, the Company shall promptly deliver to the Holder a certificate
of the Company's chief financial officer setting forth the Purchase Price after
such adjustment and setting forth a brief statement of the facts requiring such
adjustment.

     13.  Notices of Record Date, Etc. In the event of:

          (a)  any taking by the Company of a record of the holders of any class
of securities for the purpose of determining the holders thereof who are
entitled to receive any dividend or other distribution, or any right to
subscribe for, purchase, sell or otherwise acquire or dispose of any shares of
stock of any class or any other securities or property, or to receive any other
right;

          (b)  any reclassification of the capital stock of the Company, capital
reorganization of the Company, consolidation or merger involving the Company, or
sale or conveyance of all or substantially all of its assets; or

          (c)  any voluntary or involuntary dissolution, liquidation or winding-
up of the Company;

then in each such event the Company will provide or cause to be provided to the
Holder the notice as provided to the holders of the Preferred Stock or Common
Stock, whichever is applicable, as set forth in the Company's Articles, by-laws,
or the California Corporations Code.

     14.  Representations, Warranties and Covenants. This Warrant is issued and
delivered by the Company and accepted by each Holder on the basis of the
following representations, warranties and covenants made by the Company:

          A.   The Company has all necessary authority to issue, execute and
deliver this Warrant and to perform its obligations hereunder. This Warrant has
been duly authorized issued, executed and delivered by the Company and is the
valid and binding obligation of the Company, enforceable in accordance with its
terms.

          B.   The shares of Series B Preferred Stock issuable upon the exercise
of this Warrant have been duly authorized and reserved for issuance by the
Company and, when issued in accordance with the terms hereof, will be validly
issued, fully paid and nonassessable.

          C.   The issuance, execution and delivery of this Warrant do not, and
the issuance of the shares of Preferred Stock upon the exercise of this Warrant
in accordance with the terms hereof will not, (i) violate or contravene the
Company's Articles or by-laws, or any law, statute, regulation, rule, judgment
or order applicable to the Company, (ii) violate, contravene or result in a
breach or default under any material contract, agreement or instrument to which
the Company is a party or by which the Company or any of its assets are bound or
(iii) require the consent or approval of or the filing of any notice or
registration with any person or entity except for the filing of notice pursuant
to federal and state securities laws which, if required, the Company covenants
and agrees to file within the prescribed period.

          D.   So long as this Warrant has not terminated, Holder shall be
entitled to receive such financial and other information as the Holder would be
entitled to receive under the Series A and Series B Preferred Stock Purchase
Agreement if Holder were a holder of that number of shares issuable upon full
exercise of this Warrant.

          E.   As of the date hereof, the authorized capital stock of the
Company consists of (i) 15,971,421 shares of Common Stock, of which 3,200,000
shares are issued and outstanding and 2,800,000 shares of which are reserved for
future issuance to key employees pursuant to the Company's equity incentive plan
and as founder's stock to key employees and 14,141 shares are reserved for
issuance upon the exercise of this Warrant and the conversion of the Preferred
Stock issued upon such exercise, (ii) 948,276 shares of Series A Preferred
Stock, all of which are issued
<PAGE>

and outstanding shares, and (iii) 3,080,303 shares of Series B Preferred Stock,
none of which are issued and outstanding shares and 3,050,303 shares of which
are reserved for future issuance pursuant to the Series A and Series B Stock
Purchase Agreement and 14,141 shares are reserved for issuance upon the exercise
of this Warrant. Attached hereto as Exhibit B is a capitalization table
summarizing the capitalization of the Company, including, without limitation,
the current Conversion Price of the Series A Preferred Stock and Series B
Preferred Stock.

     15.  Registration Rights. The Company grants to the Holder registration
rights contained in Section 2 of the Company's Investor Rights Agreement dated
as of February 13, 1997 (the "Investor Rights Agreement"), so that (i) the
shares of Common Stock issuable upon conversion of the shares of Preferred Stock
issuable upon exercise of this Warrant shall be "Registrable Securities".

     16.  Amendment. The terms of this Warrant may be amended, modified or
waived only with the written consent of the Holder.

     17.  Representations and Covenants of the Holder. This Preferred Stock
Purchase Warrant has been entered into by the Company in reliance upon the
following representations and covenants of the Holder, which by its execution
hereof the Holder hereby confirms:

          A.   Investment Purpose. The right to acquire Preferred Stock or the
Preferred Stock issuable upon exercise of the Holder's rights contained herein
will be acquired for investment and not with a view to the sale or distribution
of any part thereof, and the Holder has no present intention of selling or
engaging in any public distribution of the same except pursuant to a
registration or exemption.

          B.   Accredited Investor. Holder is an "accredited investor" within
the meaning of the Securities and Exchange Rule 501 of Regulation D, as
presently in effect.

          C.   Private Issue. The Holder understands (i) that the Preferred
Stock issuable upon exercise of the Holder's rights contained herein is not
registered under the 1933 Act or qualified under applicable state securities
laws on the ground that the issuance contemplated by this Warrant will be exempt
from the registration and qualifications requirements thereof, and (ii) that the
Company's reliance on such exemption is predicated on the representations set
forth in this Section 17.

          D.   Financial Risk. The Holder has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investment and has the ability to bear the economic risks of its
investment.

     18.  Notices, Transfers, Etc.

          A.   Any notice or written communication required or permitted to be
given to the Holder may be given by certified mail or delivered to the Holder at
the address most recently provided by the Holder to the Company.

          B.   Subject to compliance with applicable federal and state
securities laws, this Warrant may be transferred by the Holder with respect to
any or all of the shares purchasable hereunder. Upon surrender of this Warrant
to the Company, together with the assignment notice annexed hereto duly
executed, for transfer of this Warrant as an entirety by the Holder, the Company
shall issue a new warrant of the same denomination to the assignee. Upon
surrender of this Warrant to the Company, together with the assignment hereof
properly endorsed, by the Holder for transfer with respect to a portion of the
shares of Preferred Stock purchasable hereunder, the Company shall issue a new
warrant to the assignee, in such denomination as shall be requested by the
Holder hereof, and shall issue to such Holder a new warrant covering the number
of shares in respect of which this Warrant shall not have been transferred.
<PAGE>

          C.   In case this Warrant shall be mutilated, lost, stolen or
destroyed, the Company shall issue a new warrant of like tenor and denomination
and deliver the same (i) in exchange and substitution for and upon surrender and
cancellation of any mutilated Warrant, or (ii) in lieu of any Warrant lost,
stolen or destroyed, upon receipt of an affidavit of the Holder or other
evidence reasonably satisfactory to the Company of the loss, theft or
destruction of such Warrant.

     19.  No Impairment. The Company will not, by amendment of its Articles or
through any reclassification, capital reorganization, consolidation, merger,
sale or conveyance of assets, dissolution, liquidation, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
of performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of
the Holder.

     20.  Governing Law. The provisions and terms of this Warrant shall be
governed by and construed in accordance with the internal laws of the State of
California.

     21.  Successors and Assigns. This Warrant shall be binding upon the
Company's successors and assigns and shall inure to the benefit of the Holder's
successors, legal representatives and permitted assigns.

     22.  Business Days. If the last or appointed day for the taking of any
action required or the expiration of any rights granted herein shall be a
Saturday or Sunday or a legal holiday in California, then such action may be
taken or right may be exercised on the next succeeding day which is not a
Saturday or Sunday or such a legal holiday.

     23.  Qualifying Public Offering. If the Company shall effect a firm
commitment underwritten public offering of shares of Common Stock which results
in the conversion of the Preferred Stock into Common Stock pursuant to the
Company's Articles in effect immediately prior to such offering, then, effective
upon such conversion, this Warrant shall change from the right to purchase
shares of Preferred Stock to the right to purchase shares of Common Stock, and
the Holder shall thereupon have the right to purchased, at a total price equal
to that payable upon the exercise of this Warrant in full, the number of shares
of Common Stock which would have been receivable by the Holder upon the exercise
of this Warrant for shares of Preferred Stock immediately prior to such
conversion of such shares of Preferred Stock into shares of Common Stock, and in
such event appropriate provisions shall be made with respect to the rights and
interest of the Holder to the end that the provisions hereof (including, without
limitation, the provisions for the adjustment of the Purchase Price and of the
number of shares purchasable upon exercise of this Warrant and the provisions
relating to the net issue election) shall thereafter be applicable to any shares
of Common Stock deliverable upon the exercise hereof.

     24.  Value.  The Company and the Holder agree that the value of this
Warrant on the date of grant is $100.

Dated:  April 8, 1997                       PLUMTREE SOFTWARE, INC.
      -----------------------

                                            By:  /s/ KIRILL SHEYNKMAN
                                               ---------------------------------

        [CORPORATE SEAL]                    Name:  Kirill Sheynkman
                                                 -------------------------------

                                            Title:  President and CEO
                                                  ------------------------------

Attest:
_____________________________
<PAGE>

                                 Subscription

To: ____________________________  Date: ___________________________

     The undersigned hereby subscribes for _______________________________
shares of Preferred Stock covered by this Warrant. The certificate(s) for such
shares shall be issued in the name of the undersigned or as otherwise indicated
below:

                                            ____________________________________
                                            Signature

                                            ____________________________________
                                            Name for Registration

                                            ____________________________________
                                            Mailing Address

                           Net Issue Election Notice

To: _________________________                    Date:__________________________

     The undersigned hereby elects under Section 4 to surrender the right to
purchase ____________________ shares of Preferred Stock pursuant to this
Warrant.  The certificate(s) for such shares issuable upon such net issue
election shall he issued in the name of the undersigned or as otherwise
indicated below:

                                            ____________________________________
                                            Signature

                                            ____________________________________
                                            Name for Registration

                                            ____________________________________
                                            Mailing Address
<PAGE>

                                  Assignment

     For value received _____________________________________________ hereby
sells, assigns and transfers unto ______________________________________________
________________________________________________________________________________
           [Please print or typewrite name and address of Assignee]

________________________________________________________________________________
the within Warrant, and does hereby irrevocably constitute and appoint
_________________________________ its attorney to transfer the within Warrant on
the books of the within named Company with full power of substitution on the
premises.

Dated: ___________________________

In the Presence of

__________________________________

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