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                                                                   EXHIBIT 10.27

             WEBSIDESTORY, INC., CONFIDENTIALITY AGREEMENT AND TERMS
                                 OF EMPLOYMENT

PLEASE READ THIS AGREEMENT CAREFULLY. THIS AGREEMENT DESCRIBES THE BASIC LEGAL
AND ETHICAL RESPONSIBILITIES THAT YOU ARE REQUIRED TO OBSERVE AS AN EMPLOYEE
EXPOSED TO HIGHLY SENSITIVE TECHNOLOGY AND STRATEGIC INFORMATION IN PERFORMING
RESEARCH AND DEVELOPMENT. WEBSIDESTORY'S RELATIONSHIP WITH ITS EMPLOYEES IS
BASED ON TRUST, AND EACH INDIVIDUAL WHO WORKS FOR WEBSIDESTORY IS EXPECTED TO
MAINTAIN A HIGH DEGREE OF PROFESSIONALISM. WE ARE IN A HIGHLY COMPETITIVE
BUSINESS AND WE WANT TO SUCCEED BY THE RULES, FAIR AND SQUARE.

THIS AGREEMENT, is effective as of the date shown on the signature line:

EMPLOYMENT Some of the conditions of your employment with WebSideStory, Inc.
(referred to in this agreement as "WebSideStory," the "Company," or "we") are on
the exhibit attached to this Agreement.

IF YOU KNOW OF ANY OBLIGATIONS THAT MAY CONFLICT WITH YOUR WORK FOR US, PLEASE
LET US KNOW AS SOON AS POSSIBLE.

NONINTERFERENCE WITH THIRD-PARTY RIGHTS The Company is employing you with the
understanding that (1) you are free to enter into employment with WebSideStory
and (2) only WebSideStory is entitled to the benefit of your work. WebSideStory
has no interest in using any other person's patents, copyrights, trade secrets,
or trademarks in an unlawful manner. You should be careful not to misapply
proprietary rights that WebSideStory has no right to use.

PLEASE OBSERVE THE TERMS OF THIS AGREEMENT, IT IS IMPORTANT.

CONTINUANCE OF EMPLOYMENT The faithful observance of this Agreement by you is,
and will remain, a condition of your employment. Also, your employment is
terminable at will by either you or WebSideStory at any time. WebSideStory asks
that as courtesy, you give at least two weeks' notice in advance of any
termination by you of your employment. WebSideStory reserves the absolute right
to make any changes in assignment, personnel, or employee benefits at any time.

WEBSIDESTORY'S CONFIDENTIAL INFORMATION AND WHATEVER YOU CREATE WHILE WORKING
FOR WEBSIDESTORY, IS OWNED BY WEBSIDESTORY. IN PART, THAT IS WHAT WE ARE PAYING
FOR.

EXISTING PROPRIETARY RIGHTS We are not aware of any patents, patent
applications, copyrights, trade secrets, or trademarks that you own, or have any
claim in. (If there are any, list them here).

OWNERSHIP OF WORK PRODUCT

a. WebSideStory will own all Work Product (as defined in this Agreement ). All
Work Product will be considered work made for hire by you and owned by
WebSideStory.

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b. If any of the Work Product may not, by operation of law, be considered work
made for hire by you for WebSideStory, or if ownership of all right, title, and
interest of the intellectual property rights therein will not otherwise vest
exclusively in WebSideStory, you agree to assign, and upon creation thereof
automatically assign, without further consideration, the ownership of all Trade
Secrets as defined in this Agreement, U.S. and international copyrights,
patentable inventions, and other intellectual property rights therein to
WebSideStory, its successors, and assigns.

c. WebSideStory, its successors, and assigns, will have the right to obtain and
hold in its or their own name copyrights, registrations, and any other
protection available in the foregoing.

d. You agree to perform, upon the reasonable request of WebSideStory, during or
after your employment, such further acts as may be necessary or desirable to
transfer, perfect, and defend WebSideStory's ownership of the Work Product. When
requested, you will:

1. execute, acknowledge, and deliver any requested affidavits and documents of
              assignment and conveyance;

2. obtain and aid in the enforcement of copyrights and, if applicable, patents
              with respect to the Work Product in any countries;

3. provide testimony in connection with any proceeding affecting the right,
              title, or interest of WebSideStory in any Work Product; and

4. perform any other acts as necessary or desirable to carry out the purposes of
              this Agreement.

WebSideStory will reimburse all reasonable out-of-pocket expense, incurred by
you at WebSideStory's request, in connection with the above, including (unless
you are otherwise being compensated at the time) a reasonable per diem or hourly
fee for services rendered following termination of your employment.

e. In this Agreement, "Work Product" means all intellectual property rights,
including all confidential information, confidential documents, trade secrets,
works of copyrightable authorship, U.S. and international copyrights, patentable
inventions, US and foreign letters patent, discoveries and improvements, all
trademarks and other intellectual property rights, in any programming,
documentation, technology relating to the business and interests of
WebSideStory, including any such technology that you conceive, develop, or
deliver to WebSideStory at any time during the term of your employment. Work
Product also includes all intellectual property rights in any programming,
documentation, technology, or other work product that is now contained in any of
the products or systems, including development and support systems, of
WebSideStory to the extent you conceived, developed, or delivered such Work
Product to WebSideStory prior to the date of this Agreement while you were
engaged as an independent contractor or an employee of WebSideStory. You
irrevocably give up, for the benefit of WebSideStory and its assigns, any moral
rights in the any works of copyrightable authorship recognized by applicable
law.

EXCEPTIONS Except as set forth above, WebSideStory will not make claim to any
invention for which no equipment, supplies, facilities, or WebSideStory
confidential information was used, which was developed entirely on your own
time, and which does not (i) relate to the business of WebSideStory (ii) relate
to WebSideStory's actual or demonstrable anticipated research or development, or
(iii) result from any work performed by you for Employer.

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YOU AGREE TO KEEP WEBSIDESTORY CONFIDENTIAL INFORMATION IN STRICT CONFIDENCE.

WEBSIDESTORY CONFIDENTIALITY Your position with WebSideStory requires
considerable responsibility and trust. Relying on your ethical responsibility
and undivided loyalty, WebSideStory expects to entrust you with highly sensitive
confidential, restricted, and proprietary information involving Trade Secrets
(as defined below). It could prove very difficult to isolate these Trade Secrets
from business activities that you might consider pursuing after termination of
your employment, and in some instances, you may not be able to compete with
WebSideStory in certain ways because of the risk that WebSideStory's Trade
Secrets might be compromised. You are legally and ethically responsible for
protecting and preserving WebSideStory's proprietary rights for use only for
WebSideStory's benefit, and these responsibilities may impose unavoidable
limitations on your ability to pursue some kinds of business opportunities that
might interest you during or after your employment.

TRADE SECRETS DEFINED For purposes of this Agreement, a "Trade Secret" is any
information, including, but not limited to, technical or non-technical data,
formulas, patterns, compilations, programs, devices, methods, techniques,
drawings, processes, financial data, employee salaries, financial plans, product
plans, or lists of actual or potential customers or suppliers that: (1) derive
economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can obtain
economic value from their disclosure or use; and (2) are the subject of efforts
that are reasonable under the circumstances to maintain their secrecy.

RESTRICTIONS ON USE AND DISCLOSURE OF TRADE SECRETS You agree not to use or
disclose any Trade Secrets of WebSideStory during your employment and for so
long afterwards as the pertinent information or data remain Trade Secrets,
regardless of whether the Trade Secrets are in written or tangible form, except
as required to perform any duties for WebSideStory.

SCREENING OF PUBLIC RELEASES OF INFORMATION In addition, and without any
intention of limiting your other obligations under this Agreement in any way,
you should not, during your employment, reveal any non-public information
concerning the technology pertaining to the proprietary products and
manufacturing processes of WebSideStory (particularly technology under current
development or improvement), unless you have obtained written approval from
WebSideStory in advance. In that connection, you should submit to WebSideStory
for review any proposed scientific and technical articles and the text of any
public speeches relating to work done for WebSideStory before they are released
or delivered. WebSideStory has the right to disapprove and prohibit, or delete
any parts of such articles or speeches that might disclose WebSideStory's Trade
Secrets or other confidential information or otherwise be contrary to
WebSideStory's business interests.

UPON YOUR TERMINATION OF EMPLOYMENT WITH WEBSIDESTORY, YOU AGREE TO TURN OVER
ALL NOTES, DATA, DISKETTES, TAPES, REFERENCE ITEMS, SKETCHES OR DRAWINGS,
MEMORANDA, RECORDS, AND THE MATERIALS IN YOUR POSSESSION OR CONTROL WHICH IN ANY
WAY RELATE TO ANY WEBSIDESTORY CONFIDENTIAL INFORMATION.

RETURN OF MATERIALS At the request of WebSideStory and, in any event, upon the
termination of your employment, you must return to WebSideStory and leave at its
disposal all memoranda, notes, records, drawings, manuals, computer programs,
documentation, diskettes, computer tapes, and other documents or media
pertaining to the business of WebSideStory or your specific duties for
WebSideStory, including all copies of such materials. You must also return to
WebSideStory and leave at its disposal all materials involving

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any Trade Secrets of WebSideStory. This Section is intended to apply to all
materials made or compiled by you, as well as to all materials furnished to you
by anyone else in connection with your employment. YOU ARE OBLIGATED TO CONTINUE
TO PROTECT WEBSIDESTORY'S CONFIDENTIAL INFORMATION, AFTER YOU LEAVE OUR
EMPLOYMENT.

UNFAIR COMPETITION Employee acknowledges and agrees that the sale or
unauthorized use or disclosure of any of WebSideStory's trade secrets obtained
by Employee during the course of his engagement, including information
concerning WebSideStory's current or any future and proposed work, series or
products, the facts that any such work services, or products are planned, under
consideration, or in production, as well as any descriptions thereof, constitute
unfair competition. Employee promises and agrees not to engage in any unfair
competition with WebSideStory, either during the term of his engagement or at
any time thereafter.

HIRING EMPLOYEES You agree, for a period ending one year after the termination
of your employment with WebSideStory, not to hire or engage, or attempt to hire
or engage, directly or indirectly, any individual who was an employee of
WebSideStory at any time during the one-year period prior to the date of your
termination of employment with WebSideStory, whether for or on behalf of you or
for any entity in which you have a direct or indirect interest, whether as a
proprietor, partner, stockholder, employee , agent, representative, or
otherwise.

IF ANY PART OF THIS AGREEMENT IS NOT LEGAL, THE OTHER LEGAL PARTS WILL REMAIN IN
FORCE.

SEVERABILITY The covenants in this Agreement will be construed as covenants
independent of one another and as obligations distinct from any other contract
between you and WebSideStory. Any claim that you may have against WebSideStory
will not constitute a defense to enforcement by WebSideStory of this Agreement.

SOME OF YOUR OBLIGATIONS WILL SURVIVE THE TERMINATION OF YOUR EMPLOYMENT WITH
WEBSIDESTORY.

SURVIVAL OF OBLIGATIONS The covenants in this Agreement concerning work product,
trade secrets, confidential information, unfair competition and hiring employees
will survive termination of your employment, regardless of who causes the
termination and under what circumstances.

WEBSIDESTORY WILL BE IRREPARABLY HARMED IF YOU BREACH WEBSIDESTORY
CONFIDENTIALITY OR TAKE TRADE SECRETS. TO PROTECT OURSELVES, WE MUST BE ABLE TO
STOP ANY EMPLOYEE IMMEDIATELY WHO MISAPPROPRIATES WEBSIDESTORY CONFIDENTIAL
INFORMATION OR TRADE SECRETS.

SPECIFIC PERFORMANCE AND CONSENT TO INJUNCTIVE RELIEF Irreparable harm will be
presumed if you breach any covenant in this Agreement. The faithful observance
of all covenants in this Agreement is an essential condition to your employment,
and WebSideStory is depending upon absolute compliance. Damages would probably
be very difficult to ascertain if you breached any covenant in this Agreement.
This Agreement is intended to protect the proprietary rights of WebSideStory in
many important ways. Even the threat of any misuse of the technology of
WebSideStory would be extremely harmful, since that technology is essential to
the business of WebSideStory. In light of these facts, you agree that any court
of competent jurisdiction should immediately enjoin any breach of this Agreement
upon the request of WebSideStory. Also, you specifically release WebSideStory
from the requirement of posting any bond in connection with temporary or
interlocutory injunctive relief, to the extent permitted by law.

HOW YOU RECEIVE NOTICES RELATING TO THIS AGREEMENT.

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NOTICES All notices required under this Agreement will be made in writing and
will be deemed given when (1) delivered in person, (2) deposited in the U.S.
mail, first class, with proper postage prepaid and properly addressed, or (3)
sent through the interoffice delivery service of WebSideStory, if you are still
employed by WebSideStory at the time.

THIS AGREEMENT APPLIES TO ALL WEBSIDESTORY RELATED PARTIES.

RELATED PARTIES This Agreement will inure to the benefit of, and be binding
upon, WebSideStory and its subsidiaries and its affiliates, together with their
successors and assigns, and you, together with your executor, administrator,
personal representative, heirs, and legatees.

THIS AGREEMENT REFLECTS THE TERMS OF YOUR EMPLOYMENT WITH WEBSIDESTORY. THE
TERMS OF ANY PRIOR LETTERS, NEGOTIATIONS, OR UNDERSTANDINGS THAT CONTRADICT ANY
PROVISION OF THIS AGREEMENT ARE UNENFORCEABLE.

MERGER This Agreement merges and supersedes all prior and contemporaneous
agreements, undertakings, covenants, or conditions, whether oral or written,
express or implied, to the extent that they contradict or conflict with the
terms and conditions hereof. This Agreement is not intended to modify or impair
the effectiveness of the general rules and policies WebSideStory may announce
from time to time.

ARBITRATION The parties agree that they will submit any dispute that arises
under this Agreement to arbitration in San Diego County, California. The parties
hereby agree to use a third party neutral referred by American Arbitration
Association who will conduct the arbitration under the American Arbitration
Association rules for Arbitration. The cost of the arbitration will be shared
equally by both parties.

CHOICE OF LAW This Agreement will be governed by and enforced under the laws of
the State of California, in San Diego County.

IN WITNESS WHEREOF, you, as an employee of WebSideStory, have entered and
executed this Agreement under seal, and WebSideStory has accepted your
undertaking.

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I HAVE CAREFULLY READ AND CONSIDERED THE PROVISIONS OF THIS AGREEMENT. I
UNDERSTAND AND ACKNOWLEDGE THAT THE TERMS AND CONDITIONS ARE FAIR AND APPEAR
REASONABLY REQUIRED FOR THE PROTECTION OF WEBSIDESTORY AND ITS BUSINESS.

EMPLOYEE:

/s/ MICHAEL CHRISTIAN
----------------------------------
MICHAEL CHRISTIAN

Tuesday, April 25, 2000

SOCIAL SECURITY NO:       567 13 9505

ACCEPTED:

WEBSIDESTORY INC.:

/s/ JOHN HENTRICH
----------------------------------
JOHN HENTRICH, PRESIDENT

Date:
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      WEBSIDESTORY, INC., CONFIDENTIALITY AGREEMENT AND TERMS OF EMPLOYMENT
                                    EXHIBIT A

AL.    SALARY Employee will be paid an annual salary of $160,000.00. Employee's
       salary will be paid in equal installments at regular payroll periods
       (every two weeks). Employee's salary will be reviewed periodically by the
       president of WebSideStory and may be increased or decreased from time to
       time at his sole discretion.

A2.    DEDUCTIONS WebSideStory will deduct from any compensation payable to
       Employee the sums that it is required by law to deduct, including but not
       limited to federal and state withholding taxes, social security taxes and
       state disability insurance.

A3.    BENEFITS Medical coverage is a benefit that WebSideStory provides for its
       employees alone; spouses are excluded from coverage. At your own cost,
       however, we do give you the option to include your spouse in the medical
       and/or dental plan offered. Since WebSideStory is billed for the spouse
       premium, we will in turn deduct the premium from your paycheck. Employee
       will be entitled to medical coverage after a period of 30 days.

A4.    VACATION, ILLNESS, AND HOLIDAYS Employee will be entitled each year to
       vacation time at full pay in accordance with WebSideStory's vacation
       policy.

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                                                                   EXHIBIT 10.28

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF
COUNSEL, SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION
IS NOT REQUIRED.

                       NONSTATUTORY STOCK OPTION AGREEMENT

AGREEMENT, made as of February 23, 1998 between WebSideStory, Inc., a California
corporation with offices at 6450 Lusk Boulevard, Suite E204, San Diego,
California 92121 (the "Corporation") and Michael Christian, an individual with
an address at 2135 29th Street, San Diego, California 92104 ("Michael" or the
"Optionee").

WHEREAS, pursuant to an employment agreement dated as of February 23, 1998 (the
"Employment Agreement"), Michael is general counsel of the Corporation.

WHEREAS, the Corporation wishes to grant to Michael an option (the "Option") to
purchase shares of the Corporation's Common Stock in order to enable Michael to
participate in the Corporation's growth and as an incentive for the performance
of his duties under the Employment Agreement.

IT IS THEREFORE AGREED AS FOLLOWS:

1        GRANT OF OPTIONS

         Options Granted:

                     Number of Shares Subject to Option     289

                     Date of Grant                          February 23, 1998

                     Vesting Commencement Date              February 23, 1998

                     Initial Exercise Price Per Share       $ 117.33

                     Expiration Date                        February 23, 2003

         The Option is an option to purchase the number of shares of authorized
but unissued common stock of the Corporation specified in this Section 1 (the
"Shares"). The

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Option will expire, and all rights to exercise it will terminate on the
Expiration Date, except that the Option may expire earlier as provided in this
Agreement. The number of shares subject to the Option granted pursuant to this
Agreement will be adjusted as provided in this Agreement. This Option is
intended by the Corporation and the Optionee to be a Nonstatutory Stock Option
and does not qualify for any special tax benefits to the Optionee. All shares of
the Corporation's common stock issued pursuant to the exercise of this Option
will be subject to the Corporation's Right of Repurchase as set forth in this
Agreement.

2        EXERCISE

         Optionee may exercise the Option as to 50% of the Shares on or after
the Vesting Commencement Date. Optionee may exercise the Option as to the
remaining 50% of the Shares as they become vested. The Option as to this 50% of
the Shares will vest daily over a two-year period on a pro rata basis beginning
on the Vesting Commencement Date and will be fully vested on the second
anniversary of the Vesting Commencement Date. Any unvested portion of the Option
will cease to vest upon the termination of Michael's employment for any reason.

         The right to exercise the Option will be cumulative and may accelerate
in the case of liquidation, merger, or sale of substantially all assets of the
Corporation as further provided in this Agreement. Optionee may buy all, or from
time to time any part, of the maximum number of Shares that are exercisable
under the Option, but in no case may Optionee exercise the Option with regard to
a fraction of a share, or for any share for which the Option is not exercisable.

3        COMPLIANCE WITH LAWS

         Optionee agrees to comply with all laws, rules, and regulations
applicable to the grant and exercise of the Option and the sale or other
disposition of the common stock of the Corporation received pursuant to the
exercise of the Option.

         The Option will not become exercisable unless and until the shares
exercisable under the Option have been qualified under the California Corporate
Securities Law of 1968 pursuant to a permit application filed with the
California Department of Corporations or unless the exercise is otherwise exempt
from the qualification requirements of such law. The Option is conditioned upon
the Optionee's representation, which Optionee hereby confirms as of the date of
this Agreement and which Optionee must confirm as of the date of any exercise of
all or any part of the Option, that:

         Optionee understands that both this Option and any shares purchased
upon its exercise are securities, the issuance of which require compliance with
state and federal securities laws;

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         Optionee understands that neither the Options nor the Shares have been
registered under the Securities Act of 1933 (the "Act") in reliance upon a
specific exemption contained in the Act which depends upon Optionee's bona fide
investment intention in acquiring these securities; that Optionee's intention is
to hold these securities for Optionee's own benefit for an indefinite period;
that Optionee has no present intention of selling or transferring any part
thereof (recognizing that the Option is not transferable) and that certain
restrictions may exist on transfer of the shares issued upon exercise of the
Option;

         Optionee understands that the Shares issued upon exercise of this
Option, in addition to other restrictions on transfer, must be held indefinitely
unless subsequently registered under the Act, or unless an exemption from
registration is available; that Rule 701 and Rule 144, two exemptions from
registration which may be available, are only available after the satisfaction
of certain conditions and require the presence of a U.S. public market for such
Shares; that no certainty exists that a U.S. public market for the shares will
exist, and that otherwise Optionee may have to sell the Shares pursuant to
another exemption from registration which exemption may be difficult to satisfy;
and

         The Corporation will not be under any obligation to issue any Shares
upon the exercise of this Option unless and until the Corporation has determined
that:

                      (i) it and Optionee have taken all actions required to
register such Shares under the Securities Act, or to perfect an exemption from
the registration requirements thereof;

                      (ii) any applicable listing requirement of any stock
exchange on which such Shares are listed has been satisfied; and

                      (iii) all other applicable provisions of state and federal
law have been satisfied.

4        METHOD OF EXERCISE

         Subject to the terms and conditions of this Agreement, the Option will
be exercisable by notice and payment to the Corporation in accordance with the
procedure prescribed herein. Each notice shall:

         a. state the election to exercise the Option and the number of Shares
in respect of which it is being exercised;

         b. contain a representation and agreement as to investment intent, if
required by the counsel to the Corporation, with respect to such shares in form
satisfactory to such counsel; and

         c. be accompanied by a check payable to the order of the Corporation in
the

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amount of the purchase price for the shares being purchased or, if the
Corporation agrees, be accompanied by Shares in good form for transfer, owned by
the Optionee and having a fair market value on the date of exercise equal to the
purchase price of the Shares being purchased.

5        RESERVATION OF SHARES

         The Corporation shall, at all times during the term of the Option,
reserve and keep available such number of shares of Common Stock then subject to
the Option as will be sufficient to satisfy the requirements of this Agreement.

6        ASSIGNMENT

         During the lifetime of Optionee, the Option will be exercisable only by
the Optionee or the Optionee's conservator or legal representative and will not
be assignable or transferable. In the event of the Optionee's death, the Option
will not be transferable by the Optionee other than by will or the laws of
descent and distribution.

7        DEATH OF OPTIONEE

         If Optionee dies, any Option granted to the Optionee may be exercised,
to the extent it had vested at the time of death, at any time within 12 months
after the Optionee's death, by the executors or administrators of his estate or
by any person or persons who acquire the Option by will or the laws of descent
and distribution, but not beyond the otherwise applicable term of the Option.

8        ADJUSTMENTS FOR SUBDIVISIONS, COMBINATIONS, OR CONSOLIDATIONS

         The number of Shares for which the Option is exercisable will be
proportionately adjusted for any increase or decrease in the number of issued
shares of common stock resulting from the payment of a stock split, a reverse
stock split, a stock dividend, recapitalization, combination or reclassification
of the Corporation's stock or any other event that results in an increase or
decrease in the number of issued shares of common stock effected without receipt
of consideration by the Corporation, and the exercise price will be
proportionately increased in the event the number of Shares subject to the
Option are decreased and will be proportionately decreased in the event the
number of Shares subject to the Option are increased.

9        LIQUIDATION OR MERGER

         If (a) the Corporation dissolves or liquidates or (b) (i) there is a
proposed merger of the Corporation with or into another corporation or other
entity, as a result of which the Corporation would not be the surviving
corporation and (ii) the Option is not assumed or an equivalent option
substituted by the successor corporation or a parent or subsidiary of the

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successor corporation, then the Option will become fully vested and will
terminate immediately prior to the consummation of such action. The Corporation
will notify the Optionee not less than 30 days prior to the proposed
consummation of a pending dissolution, liquidation, or merger and the Option
will be exercisable as to all Shares until immediately prior to the consummation
of such action.

10       THE CORPORATION'S RIGHT OF REPURCHASE

         Shares issued pursuant to the exercise of an Option are subject to a
right, but not an obligation, of repurchase by the Corporation (the "Right of
Repurchase"), at the price specified in below, if the Optionee ceases to be an
employee for any reason, including death or disability ("Employment
Termination") at any time after the grant of the Option. Shares issued by the
Corporation will only be transferable by the Optionee subject to the Right of
Repurchase, and the Corporation will legend the Right of Repurchase on the stock
certificates evidencing such Shares and will take such other steps as it deems
necessary to ensure compliance with this restriction. The Corporation's rights
under this section will be freely assignable, in whole or in part.

         For purposes of this section: (a) "Fair Market Value" of the Shares
means the estimated fair market value of the Shares determined by a mutually
acceptable certified public accountant, without regard to restrictions on
transfer, on the basis of an arms-length transaction between a willing seller
and a willing buyer; (b) "Net Worth" means total assets less total liabilities
determined in accordance with generally accepted accounting principles; and (c)
"Formula Value" of the Shares means the value of the Shares determined by
application of the following formula: Formula Value of the Shares = the number
of Shares being repurchased, multiplied by a fraction the numerator of which is
the Net Worth and the denominator of which is the number of shares of Common
Stock outstanding immediately prior to the repurchase.

         If the Corporation terminates Michael without cause, the purchase price
of the Shares will be the Fair Market Value of the Shares or, if Michael so
elects in his sole discretion, the Formula Value of the Shares. If Michael's
employment terminates for any other reason, the purchase price of the Shares
will be the Formula Value of the Shares or, if the Company so elects in its sole
discretion, the Fair Market Value of the Shares.

         The Corporation may exercise its Right of Repurchase by sending a
written notice to the Optionee of its taking such action and specifying the
number of Shares being repurchased. The Corporation's Right of Repurchase will
terminate if not exercised by written notice from the Corporation to the
Optionee within 90 days of the date on which Michael's employment terminates or
within 90 days of the last date any Option granted to such Optionee is
exercised, which ever is later. If the Corporation exercises its Right of

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Repurchase, the Optionee will deliver to the Corporation every stock certificate
representing the Shares being repurchased, and the Corporation will promptly pay
the total purchase price in cash to the Optionee.

         Notwithstanding any other provision of this section, if the
Corporation's Common Stock is listed on any United States securities exchange or
traded on any formal over-the-counter market in general use in the United States
at the time the Optionee would otherwise be required to transfer his Shares, the
Corporation will no longer have the Right of Repurchase, and the Optionee will
have no obligation to sell his Shares pursuant to this section.

11       ADJUSTMENTS FOR DILUTING ISSUES

         If the Corporation issues or is deemed to issue any shares of Common
Stock at a purchase price less than the Formula Value of such shares, then the
number of Shares subject to the Option will be increased such that the Formula
Value of all such Shares will be equal to the Formula Value of the Shares
subject to the Option immediately prior to such issuance or deemed issuance, and
the price per Share will be reduced such that the aggregate purchase price of
all Shares subject to the Option immediately after such issuance or deemed
issuance will be equal to the aggregate purchase price of all Shares subject to
the Option immediately prior to such issuance.

         If the Corporation, at any time or from time to time after the date of
this Agreement, issues any securities convertible into or exchangeable for any
Common Stock ("Convertible Securities") or any options, rights or warrants to
subscribe for any Common Stock or any Convertible Securities, then the maximum
number of shares (as set forth in the instrument relating thereto without regard
to any provisions contained therein for a subsequent adjustment of such number)
of Common Stock issuable upon the exercise of such options or, in the case of
Convertible Securities and options therefor, the conversion or exchange of such
Convertible Securities, shall be deemed to be issued as of the time of such
issue. No further adjustment in the exercise price or number of Shares subject
to the Option shall be made upon the subsequent issue of Convertible Securities
or shares of Common Stock upon the exercise of such options or conversion or
exchange of such Convertible Securities. If such options or Convertible
Securities by their terms provide, with the passage of time or otherwise, for
any increase in the consideration payable to the Corporation or for any decrease
in the number of shares of Common Stock issuable upon the exercise, conversion
or exchange thereof, the adjustments computed upon the original issuance
thereof, and any subsequent adjustments based thereon, shall, upon any such
increase or decrease becoming effective, be recomputed to reflect such increase
or decrease insofar as it affects such options or the rights of conversion or
exchange under such Convertible Securities.

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12       MISCELLANEOUS PROVISIONS

         Neither party will make any announcement regarding this Agreement
without the written approval of the other party regarding content and timing.

         Time is of the essence.

         All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given on the
date of service if served by telex, cable or personally on the party to whom
notice is to be given, or within five (5) days after mailing, if mailed to the
party to whom notice is to be given, by first class mail (airmail, if
international), registered or certified, postage prepaid, and properly addressed
to the party, if to the Corporation or Michael, at the address set forth on the
first page of this Agreement or any other address that the Corporation or
Michael may designate by written notice to the other party.

         This Agreement constitutes the entire agreement among the parties
relating to the subject matter of this Agreement and supersedes all prior and
contemporaneous agreements, understandings, and discussions regarding such
subject matter. The provisions of this Agreement may be waived, altered,
amended, or repealed, in whole or in part, only by means of a writing signed by
both parties hereto.

         If one or more provisions of this Agreement is found to be illegal,
invalid, or unenforceable, it will not affect the legality, validity, or
enforceability of any of the remaining provisions of this Agreement. The parties
will attempt to substitute for any illegal, invalid, or unenforceable provision
a legal, valid, and enforceable provision that achieves, to the greatest extent
possible, the economic objectives of the provision in question.

         This Agreement shall be construed in accordance with and governed by
the laws of the State of California without regard to conflict of laws
principles. In any action to enforce this Agreement, the Superior Court of the
State of California will have sole and exclusive jurisdiction, regardless of the
nature of the action to enforce this Agreement, and venue will be in the County
of San Diego, California.

         The headings in this Agreement are for convenience only and are not to
be used in the interpretation of any of the provisions of this Agreement.

         Each of the Corporation and Optionee represents and warrants to the
other that in the execution of this Agreement they are not relying on any
representations, whether expressed or implied, including, without limitation,
representations of fact or opinion, made by or on behalf of the Corporation or
Optionee with the exception of any representations set forth in this Agreement.

                                     Page 7
<PAGE>   8

         Waiver of any one provision of this Agreement will not be deemed a
waiver of any other provision.

         Each party to this Agreement agrees to perform any further acts and
execute and deliver any documents that may be reasonably necessary to carry out
the intent of the parties as expressed in this Agreement.

         Each party hereby acknowledges and represents that such party: (a) has
fully and carefully read this Agreement prior to its execution; (b) has had the
opportunity to be and has been advised by an attorney or adviser of such party's
choice as to the legal effect and meaning of this Agreement and all the terms
and conditions hereof; (c) has had the opportunity to make whatever
investigation or inquiry it deemed necessary or appropriate in connection with
the subject matter of this Agreement; (d) has been afforded the opportunity to
negotiate as to any and all terms hereof; and (e) is executing this Agreement as
a free and voluntary act, without any duress or undue influence of any kind.

         The language of this Agreement will be construed as a whole, according
to the fair meaning and intention and not strictly for or against any party
hereto, regardless of who drafted or was principally responsible for drafting
this Agreement or any specific term or condition hereof. This Agreement will be
deemed to have been drafted by all parties, and no party will contend otherwise.

         Except as limited herein, this Agreement will be binding on and will
inure to the benefit of the parties hereto and their respective successors,
heirs, assigns, and representatives.

         The rights and obligations set forth in this Agreement may only be
enforced by the respective party to this Agreement in favor of which the right
or obligation runs. Except as expressly provided herein, no party to this
Agreement assumes any liabilities to persons no parties to this Agreement, nor
are any such third parties intended to derive any benefit from this Agreement or
the consummation of the transactions provided for herein.

         This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     Page 8
<PAGE>   9

IN WITNESS WHEREOF, each of the parties hereto has executed this Stock Option
Agreement, in the case of the Corporation by its duly authorized officers, as of
the date and year written above.

/S/  MICHAEL CHRISTIAN              WebSideStory, Inc.
-------------------------
     Michael Christian
                                    by:  /S/  BLAISE BARRELET
                                         ---------------------------------------
                                         Blaise Barrelet, president, director,
                                         and shareholder

                                    WebSideStory, Inc.

                                    by:  /S/  AGNES BAUDOIN
                                         ---------------------------------------
                                         Agnes Baudoin, chief financial officer,
                                         director, and shareholder

                         [SIGNATURE PAGE TO WEBSIDESTORY
                      NONSTATUTORY STOCK OPTION AGREEMENT]

                                     Page 9

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