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                                                                     EXHIBIT 4.7

                      FORM OF KANA STOCK OPTION AGREEMENT

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                         PARENT STOCK OPTION AGREEMENT

   This Stock Option Agreement (the "Agreement") is made and entered into as of
April 9, 2001, between Kana Communications, Inc., a Delaware corporation
("Parent"), and Broadbase Software, Inc., a Delaware corporation ("Company").

                                    RECITALS

   A. Concurrently with the execution and delivery of this Agreement, Parent,
Company and Arrow Acquisition Corporation, a Delaware corporation and a wholly
owned subsidiary of Parent ("Merger Sub"), are entering into an Agreement and
Plan of Merger (the "Merger Agreement"), that provides, among other things,
upon the terms and subject to the conditions thereof, for the merger of Merger
Sub and Company (the "Merger"). Capitalized terms used in this Agreement but
not defined herein shall have the meanings ascribed to such terms in the Merger
Agreement.

   B. As a condition to Company's willingness to enter into the Merger
Agreement, Company has required that the Parent agree, and the Parent has
agreed, to grant to Company an option to acquire shares of Parent Common Stock
("Parent Shares"), upon the terms and subject to the conditions set forth
herein.

   In consideration of the foregoing and of the mutual covenants and agreements
set forth herein and in the Merger Agreement and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties agree as follows:

   1. Grant of Option. Parent hereby grants to Company an irrevocable option
(the "Option"), exercisable following the occurrence of an Exercise Event (as
defined in Section 2(a)), to acquire up to a number of Parent Shares equal to
19.9% of the Parent Shares issued and outstanding as of the date, if any, upon
which an Exercise Notice (as defined in Section 2(b) below) shall have been
delivered (the "Option Shares"), in the manner set forth below by paying cash
at a price of $.875 per share (the "Exercise Price"); provided, however, that
the Exercise Price will automatically, equitably and proportionally be adjusted
to reflect any subdivision, stock split, combination, reverse stock split,
stock dividend or other recapitalization affecting Parent Shares; and provided,
further, that the number of Parent Shares issuable hereunder shall be subject
to adjustment such that in no event shall the total number of Parent Shares
issuable upon exercise of the Option exceed that number of shares which is
equal to the difference of 19.9% of the Parent Shares issued and outstanding as
of the date, if any, upon which an Exercise Notice shall have been delivered
less the total number of Parent Shares, if any, issued or issuable at or prior
to the time of such exercise upon conversion of that certain Convertible
Promissory Note pursuant to that certain Revolving Loan Agreement dated the
date hereof between Parent and Company. All references in this Agreement to
Parent Shares issued to Company hereunder shall be deemed to include any
associated Rights.

   2. Exercise of Option; Maximum Proceeds.

     (a) For all purposes of this Agreement, an "Exercise Event" shall mean the
occurrence of any of (i) a Parent Triggering Event (as such term is defined in
the Merger Agreement), (ii) (A) the public announcement of an acquisition or
purchase by any person or "group" (as defined under Section 13(d) of the
Exchange Act and the rules and regulations thereunder) of more than a 30%
beneficial ownership interest in the total outstanding voting securities of
Parent or any of its subsidiaries; or (B) the public announcement or
commencement of any tender offer or exchange offer that if consummated would
result in any person or "group" beneficially owning 30% or more of the total
outstanding voting securities of Parent or any of its subsidiaries.

     (b) At any time following the occurrence of an Exercise Event, Company may
deliver to the Parent a written notice (an "Exercise Notice") specifying that
it wishes to exercise its rights to acquire Parent Shares

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under the Option and close a purchase of Option Shares and specifying the total
number of Option Shares it wishes to acquire. Unless such Exercise Notice is
withdrawn by Company, the closing of a purchase of such Option Shares (a
"Closing") shall take place at the principal offices of Parent upon such date
(which shall be no earlier than three business days following the delivery of
the Exercise Notice) and at such time prior to the termination of the Option as
may be designated by Company in the Exercise Notice.

     (c) The Option shall terminate upon the earliest to occur of (i) the
Effective Time (as such term is defined in the Merger Agreement), (ii)
termination of the Merger Agreement pursuant to Section 7.1(a) thereof, (iii)
termination of the Merger Agreement pursuant to Section 7.1(i) thereof if prior
to such termination no Triggering Event shall have occurred; (iv) termination
of the Merger Agreement pursuant to Section 7.1(b), 7.1(c), 7.1(d) or 7.1(e)
thereof if prior to such termination no Exercise Event shall have occurred or
(v) 12 months following the termination of the Merger Agreement under any other
circumstances; provided, however, that if the Option is exercisable but cannot
be exercised by reason of any applicable government order or because the
waiting period related to the issuance of the Option Shares under the HSR Act
shall not have expired or been terminated, or because any other condition to
closing has not been satisfied, then the Option shall not terminate until the
tenth business day after all such impediments to exercise shall have been
removed or shall have become final and not subject to appeal, and provided,
further that if, subsequent to exercise of the Option, but prior to any other
termination of the Merger Agreement, the Merger Agreement is terminated by
Parent pursuant to Section 7.1(i) thereof, then (1) the Option, to the extent
it has not been exercised, shall terminate and (2) to the extent the Option has
been exercised, Parent may repurchase for cash all Option Shares then held by
Company at a per Option Share price equal to the Exercise Price.

     (d) If the sum of (i) any Termination Fee received by Company under
Section 7.3(c) of the Merger Agreement plus (ii) the proceeds received by
Company from any sales or other dispositions of Option Shares (including
pursuant to Parent's exercise of its rights to purchase Option Shares under
Section 7(a) and Section 10 hereof) or the Option (including pursuant to
Company's exercise of its rights to surrender the Option pursuant to Section 9
hereof), plus (iii) any dividends or distributions received by Company declared
on Option Shares is, in the aggregate, greater than the sum of (x) $2,500,000
plus (y) the product of (1) the Exercise Price multiplied by (2) the number of
Parent Shares purchased by Company pursuant to the Option (the sum of clauses
(x) and (y), the "Profit Cap"), then all such proceeds received by Company in
excess of the Profit Cap shall be promptly remitted in cash by Company to
Parent.

   3. Conditions to Closing. The obligation of Parent to issue Option Shares to
Company hereunder is subject to the conditions that (a) any waiting period
under the HSR Act applicable to the issuance of the Option Shares hereunder
shall have expired or been terminated; (b) all material consents, approvals,
orders or authorizations of, or registrations, declarations or filings with,
any Governmental Entity, if any, required in connection with the issuance of
the Option Shares hereunder shall have been obtained or made, as the case may
be; and (c) no preliminary or permanent injunction or other order by any court
of competent jurisdiction prohibiting or otherwise restraining such issuance
shall be in effect. It is understood and agreed that at any time during which
Company shall be entitled to deliver to Parent an Exercise Notice, the parties
will use their respective reasonable efforts to satisfy all conditions to
Closing, so that a Closing may take place as promptly as practicable.

   4. Closing. At any Closing, (a) Parent shall deliver to Company a single
certificate in definitive form representing the number of Parent Shares
designated by Company in its Exercise Notice consistent with this Agreement,
such certificate to be registered in the name of Company and to bear the legend
set forth in Section 10 hereof, against delivery of (b) payment by Company to
the Parent of the aggregate Exercise Price for the Parent Shares so designated
and being purchased by delivery of a certified check, bank check or wire
transfer of immediately available funds.

   5. Representations and Warranties of the Parent. Parent represents and
warrants to Company that (a) Parent is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has
the corporate power and authority to enter into this Agreement and to carry out
its

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obligations hereunder; (b) the execution and delivery of this Agreement by
Parent and consummation by Parent of the transactions contemplated hereby have
been duly authorized by all necessary corporate action on the part of Parent
and no other corporate proceedings on the part of Parent are necessary to
authorize this Agreement or any of the transactions contemplated hereby; (c)
this Agreement has been duly executed and delivered by Parent and constitutes a
legal, valid and binding obligation of Parent and, assuming this Agreement has
been duly executed and delivered by Company, is enforceable against Parent in
accordance with its terms, except as enforceability may be limited by
bankruptcy and other similar laws affecting the rights of creditors generally
and general principles of equity; (d) except for any filings, authorizations,
approvals or orders required under the applicable blue sky laws of any state,
and the rules and regulations promulgated thereunder, Parent has taken all
necessary corporate and other action to authorize and reserve for issuance and
to permit it to issue upon exercise of the Option, and at all times from the
date hereof until the termination of the Option will have reserved for
issuance, a sufficient number of unissued Parent Shares for Company to exercise
the Option in full and will take all necessary corporate or other action to
authorize and reserve for issuance all additional Parent Shares or other
securities which may be issuable pursuant to Section 8(a) upon exercise of the
Option, all of which, upon their issuance and delivery in accordance with the
terms of this Agreement and payment therefor by Company, will be validly
issued, fully paid and nonassessable; (e) upon delivery of the Parent Shares
and any other securities to Company upon exercise of the Option, Company will
acquire such Parent Shares or other securities free and clear of all
Encumbrances, excluding those imposed by Company; (f) the execution and
delivery of this Agreement by Parent do not, and the performance of this
Agreement by Parent will not, (i) violate the Certificate of Incorporation or
Bylaws of the Parent, (ii) conflict with or violate any order applicable to the
Parent or any of its subsidiaries or by which they or any of their material
property is bound or affected or (iii) result in any breach of or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give rise to any right of termination, amendment,
acceleration or cancellation of, or result in the creation of a material
Encumbrance on any material property or assets of Parent or any of its
subsidiaries pursuant to, any material contract or agreement to which Parent or
any of its subsidiaries is a party or by which Parent or any of its
subsidiaries or any of their material property is bound or affected, except to
the extent that any such breach, default, right of termination, amendment,
acceleration or cancellation or creation of a material Encumbrance would not
prevent or materially delay the performance by Parent of Parent's obligations
under this Agreement; and (g) the execution and delivery of this Agreement by
Parent does not, and the performance of this Agreement by Parent will not,
require any consent, approval, authorization or permit of, or filing with, or
notification to, any Governmental Entity.

   6. Representations and Warranties of Company. Company represents and
warrants to Parent that (i) the execution and delivery of this Agreement by
Company and the consummation by it of the transactions contemplated hereby have
been duly authorized by all necessary corporate action on the part of Company
and this Agreement has been duly executed and delivered by a duly authorized
officer of Company and will constitute a legal, valid and binding obligation of
Company and, assuming this Agreement has been duly executed and delivered by
Company, is enforceable against Parent in accordance with its terms, except as
enforceability may be limited by bankruptcy and other similar laws affecting
the rights of creditors generally and general principles of equity; and (ii)
Company is acquiring the Option, and, if and when the Company exercises the
Option, it will be acquiring the Option Shares issuable upon the exercise
thereof for its own account and not with a view to distribution or resale in
any manner which would be in violation of the Securities Act.

   7. Registration Rights.

     (a) Following the termination of the Merger Agreement, Company (sometimes
referred to herein as the "Holder") may by written notice (a "Registration
Notice") to Parent (sometimes referred to herein as the "Registrant") request
the Registrant to register under the Securities Act all or any part of the
Option Shares acquired by the Holder pursuant to this Agreement (such Option
Shares, together with any other

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  shares of the Parent's capital stock issuable in lieu of or with respect to
  such Option Shares, the "Registrable Securities") in order to permit the
  public sale or other disposition of such shares in accordance with the
  intended method of sale or other disposition stated by the Holder;
  provided, however, that any such Registration Notice must relate to a
  number of shares equal to at least 2% of the outstanding Parent Shares and
  that any rights to require registration hereunder shall terminate with
  respect to any shares of the Parent's capital stock that may be sold
  pursuant to Rule 144(k) under the Securities Act or at such time as all of
  the Registrable Securities may be sold in any three month period pursuant
  to Rule 144 under the Securities Act. Upon receipt of a Registration
  Notice, the Registrant will have the option exercisable by written notice
  delivered to the Holder within ten business days after the receipt of the
  Registration Notice, irrevocably to agree to purchase all or any part of
  the Registrable Securities for cash at a price (the "Option Price") equal
  to the product of (i) the number of Registrable Securities so purchased and
  (ii) the per share average of the closing sale prices of the Registrant's
  Common Stock on the Nasdaq Stock Market for the twenty trading days
  immediately preceding the date of the Registration Notice. Any such
  purchase of Registrable Securities by the Registrant hereunder will take
  place at a closing to be held at the principal executive offices of the
  Registrant or its counsel at any reasonable date and time designated by the
  Registrant in such notice within five business days after delivery of such
  notice. The payment for the shares to be purchased will be made by delivery
  at the time of such closing of the Option Price in immediately available
  funds.

     (b) If the Registrant receives a Registration Notice and does not elect
  to exercise its option to purchase pursuant to Section 7(a), the Registrant
  shall use all reasonable best efforts to effect, as promptly as
  practicable, the registration under the Securities Act of the unpurchased
  Registrable Securities requested to be registered in the Registration
  Notice; provided, however, that (i) the Holder shall not be entitled to
  more than an aggregate of two effective registration statements hereunder,
  and provided further, that if the Registrant withdraws a filed registration
  statement at the request of the Holder (other than as the result of a
  material adverse change in the Registrant's business or prospects or the
  Holder's learning of new material information concerning the Registrant),
  then such filing shall be deemed to have been an effective registration for
  purposes of this clause (i), (ii) the Registrant will not be required to
  file any such registration statement or maintain its effectiveness during
  any period of time (not to exceed 45 days after a Registration Notice in
  the case of clause (A) below or 60 days after a Registration Notice in the
  case of clauses (B) and (C) below) when (A) the Registrant is in possession
  of material non-public information which it reasonably believes would be
  detrimental to be disclosed at such time and such information would have to
  be disclosed if a registration statement were filed or effective at that
  time; (B) the Registrant is required under the Securities Act to include
  audited financial statements for any period in such registration statement
  and such financial statements are not yet available for inclusion in such
  registration statement; or (C) the Registrant determines, in its good
  faith, reasonable judgment, that such registration would materially
  interfere with any financing, acquisition or other material transaction
  involving the Registrant and (iii) the Registrant will not be required to
  maintain the effectiveness of any such registration statement for an
  aggregate period greater than 180 days. If consummation of the sale of any
  Registrable Securities pursuant to a registration hereunder does not occur
  within 180 days after the filing with the SEC of the initial registration
  statement therefor, the provisions of this Section 7 shall again be
  applicable to any proposed registration. The Registrant shall use all
  reasonable best efforts to cause any Registrable Securities registered
  pursuant to this Section 7 to be qualified for sale under the securities or
  blue sky laws of such jurisdictions as the Holder may reasonably request
  and shall continue such registration or qualification in effect in such
  jurisdictions until the Holder has sold or otherwise disposed of all of the
  securities subject to the registration statement; provided, however, that
  the Registrant shall not be required to qualify to do business in, or
  consent to general service of process in, any jurisdiction by reason of
  this provision.

     (c) The registration rights set forth in this Section 7 are subject to
  the condition that the Holder shall provide the Registrant with such
  information with respect to the Holder's Registrable Securities, the plan
  for distribution thereof, and such other information with respect to the
  Holder as, in the reasonable

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  judgment of counsel for the Registrant, is necessary to enable the
  Registrant to include in a registration statement all facts required to be
  disclosed with respect to a registration thereunder, including the identity
  of the Holder and the Holder's plan of distribution.

     (d) A registration effected under this Section 7 shall be effected at
  the Registrant's expense, except for underwriting discounts and commissions
  and the fees and expenses of counsel to the Holder, and the Registrant
  shall use all reasonable best efforts to: (i) provide such documentation
  (including certificates, opinions of counsel and "comfort" letters from
  auditors) as are customary in connection with underwritten public offerings
  and as an underwriter may reasonably require, (ii) prepare and file with
  the SEC such amendments and supplements to such registration statement and
  the prospectus used in connection with such registration statements as may
  be necessary to comply with the provisions of the Securities Act and (iii)
  furnish to the Holder and to any underwriter of such securities such number
  of copies of the final prospectus and such other documents as the Holder or
  underwriters may reasonably request. In connection with any registration
  which the Holder requests be underwritten, the Holder and the Registrant
  agree to enter into an underwriting agreement reasonably acceptable to each
  such party, in form and substance customary for transactions of this type
  with the underwriters participating in such offering.

     (e) Indemnification

     (i) The Registrant will indemnify the Holder, each of the Holder's
  directors and officers and each person who controls the Holder within the
  meaning of Section 15 of the Securities Act, and each underwriter of the
  Registrant's securities, with respect to any registration, qualification or
  compliance which has been effected pursuant to this Agreement, against all
  expenses, claims, losses, damages or liabilities (or actions in respect
  thereof), including any of the foregoing incurred in settlement of any
  action or litigation, commenced or threatened (each, a "Damage Claim"),
  arising out of or based on (A) any untrue statement (or alleged untrue
  statement) of a material fact contained in any registration statement,
  prospectus, offering circular or other document, or any amendment or
  supplement thereto, incident to any such registration, qualification or
  compliance, (B) any omission (or alleged omission) to state therein a
  material fact required to be stated therein or necessary to make the
  statements therein, in light of the circumstances in which they were made,
  not misleading, or (C) any violation by the Registrant of any rule or
  regulation promulgated under the Securities Act, the Securities Exchange
  Act of 1934, as amended, any federal or state securities law or any rule or
  regulation promulgated under any of them applicable to the Registrant (each
  matter in clause (A), (B) or (C), a "Violation"), in each case in
  connection with any such registration, qualification or compliance, and the
  Registrant will reimburse the Holder and, each of its directors and
  officers and each person who controls the Holder within the meaning of
  Section 15 of the Securities Act, and each underwriter for any legal and
  any other expenses reasonably incurred in connection with investigating,
  preparing or defending any such Damage Claim, provided that the Registrant
  will not be liable in any such case to the extent that any such Damage
  Claim arises out of or is based on any untrue statement or omission or
  alleged untrue statement or omission, made in reliance upon and in
  conformity with written information furnished to the Registrant by the
  Holder or director or officer or controlling person or underwriter seeking
  indemnification, and provided, further, that the indemnity agreement
  contained in this Section 7(e)(i) shall not apply to amounts paid in
  settlement of any such Damage Claim if such settlement is effected without
  the consent of the Registrant, which consent shall not be unreasonably
  withheld.

     (ii) The Holder will indemnify the Registrant, each of the Registrant's
  directors and officers and each underwriter of the Registrant's securities
  covered by such registration statement and each person who controls the
  Registrant within the meaning of Section 15 of the Securities Act, against
  all Damage Claims arising out of or based on any Violation in connection
  with any such registration, qualification or compliance, and will reimburse
  the Registrant, such directors, officers or control persons or underwriters
  for any legal or any other expenses reasonably incurred in connection with
  investigating, preparing or defending any such Damage Claim, in each case
  to the extent, but only to the extent, that such Violation

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  occurs in such registration statement, prospectus, offering circular or
  other document in reliance upon and in conformity with written information
  furnished to the Registrant by the Holder expressly for use therein,
  provided that in no event shall any indemnity under this Section 7(e)
  exceed the gross proceeds of the offering received by the Holder and
  provided, further that the indemnity agreement contained in this Section
  7(e)(ii) shall not apply to amounts paid in settlement of any such Damage
  Claim if such settlement is effected without the consent of the Holder,
  which consent shall not be unreasonably withheld.

     (iii) Each party entitled to indemnification under this Section 7(e)
  (the "Indemnified Party") shall give notice to the party required to
  provide indemnification (the "Indemnifying Party") promptly after such
  Indemnified Party has actual knowledge of any claim as to which indemnity
  may be sought, and shall permit the Indemnifying Party to assume the
  defense of any such claim or any litigation resulting therefrom, provided
  that counsel for the Indemnifying Party, who shall conduct the defense of
  such claim or litigation, shall be approved by the Indemnified Party (whose
  approval shall not unreasonably be withheld), and the Indemnified Party may
  participate in such defense at such party's expense; provided, however,
  that the Indemnifying Party shall pay such expense if representation of the
  Indemnified Party by counsel retained by the Indemnifying Party would be
  inappropriate due to actual or potential differing interests between the
  Indemnified Party and any other party represented by such counsel in such
  proceeding, and provided, further that the failure of any Indemnified Party
  to give notice as provided herein shall not relieve the Indemnifying Party
  of its obligations under this Section 7(e) unless the failure to give such
  notice is materially prejudicial to an Indemnifying Party's ability to
  defend such action. No Indemnifying Party, in the defense of any such claim
  or litigation shall, except with the consent of each Indemnified Party,
  consent to entry of any judgment or enter into any settlement which does
  not include as an unconditional term thereof the giving by the claimant or
  plaintiff to such Indemnified Party of a release from all liability in
  respect to such claim or litigation. No Indemnifying Party shall be
  required to indemnify any Indemnified Party with respect to any settlement
  entered into without such Indemnifying Party's prior consent (which shall
  not be unreasonably withheld).

     (iv) If the indemnification provided for in this Section 7(e) is held by
  a court of competent jurisdiction to be unavailable to an Indemnified Party
  with respect to any Damage Claim, then the Indemnifying Party, in lieu of
  indemnifying the Indemnified Party, shall contribute to the amount paid or
  payable by such Indemnified Party with respect to such Damage Claim in the
  proportion that is appropriate to reflect the relative fault of the
  Indemnifying Party and the Indemnified Party in connection with the
  statements or omissions that resulted in such Damage Claim, as well as any
  other relevant equitable considerations. The relative fault of the
  Indemnifying Party and the Indemnified Party shall be determined by
  reference to, among other things, whether the untrue or alleged untrue
  statement of material fact or the omission to state a material fact relates
  to information supplied by the Indemnifying Party or by the Indemnified
  Party, and the parties' relative intent, knowledge, access to information
  and opportunity to correct or prevent such statement or omission. In any
  such case, (A) the Holder will not be required to contribute any amount in
  excess of the aggregate public offering price of all such Registrable
  Securities offered and sold by the Holder pursuant to such registration
  statement; and (B) no person or entity guilty of fraudulent
  misrepresentation (within the meaning of Section 11(f) of the Securities
  Act) will be entitled to contribution from any person or entity who was not
  guilty of such fraudulent misrepresentation.

   8. Adjustment Upon Changes in Capitalization; Rights Plans

     (a) In the event of any change in the Parent Shares by reason of stock
  dividends, stock splits, reverse stock splits, mergers (other than the
  Merger), recapitalizations, combinations, exchanges of shares and the like,
  the type and number of shares or securities subject to the Option shall be
  adjusted appropriately, and proper provision shall be made in the
  agreements governing such transaction so that Company shall receive, upon
  exercise of the Option, the number and class of shares or other securities
  or property that Company would have received in respect of the Parent
  Shares if the Option had been exercised immediately prior to such event or
  the record date therefor, as applicable.

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     (b) Prior to such time as the Option is terminated, and at any time after
the Option is exercised (in whole or in part, if at all), the Parent shall not
(i) adopt (nor permit the adoption of) a new stockholders rights plan that
contains provisions for the distribution or exercise of rights thereunder as a
result of Company or any affiliate or transferee being the beneficial owner of
shares of the Parent by virtue of the Option being exercisable or having been
exercised (or as a result of beneficially owning shares issuable in respect of
any Option Shares), or (ii) take any other action which would prevent or
disable Company from exercising its rights under this Agreement or enjoying the
full rights and privileges possessed by other holders of Parent Shares
generally with respect to the Option Shares obtained by the Holder upon
exercise of the Option.

   9. Repurchase of Shares. Parent shall have the right to purchase for cash
(the "Repurchase Right") all, but not less than all, of the Option Shares then
beneficially owned by Company at an aggregate price for all such shares
(regardless of the number of such shares) equal to the Adjusted Profit Cap.
Parent's right to exercise the Repurchase Right shall expire on the twentieth
business day following the two year anniversary of the termination of the
Merger (the "Merger Termination Date"). In the event Parent wishes to exercise
the Repurchase Right, Parent shall send a written notice to Company specifying
a date (not later than ten business days and not earlier than the second
business day following the date such notice is given) for the closing of such
repurchase (the "Repurchase Notice"), provided, however that Parent may not
repurchase any Option Shares hereunder prior to the date that is one calendar
year following the date on which the Merger Agreement is terminated. The
closing of the repurchase of the Option Shares shall take place at the
principal offices of Parent upon such specified date. Upon exercise of Parent's
right to repurchase all outstanding Option Shares and full payment therefor to
Company pursuant to this Section 9, any and all right of Company to future
exercises of the Option shall be terminated. Notwithstanding anything to the
contrary herein, if application of the Adjusted Profit Cap formula below yields
a number that is less than zero, Parent may exercise its Repurchase Right as
provided in this Section 9, and upon such exercise, Company shall deliver all
Option Shares it holds to Parent for cancellation, and neither Company nor
Parent shall pay each other any amount in connection with such exercise of the
Repurchase Right.

   For the purposes of this Agreement, the "Adjusted Profit Cap" means the
difference of (i) the Profit Cap minus (ii) the sum of (A) any Termination Fee
received by Company under Section 7.3(c) of the Merger Agreement plus (B) the
proceeds received by Company for any sales or other dispositions of Option
Shares (including pursuant to Parent's exercise of its rights to purchase
Option Shares under Section 7(a) hereof) or the Option, and any dividends or
distributions received by Company declared on Option Shares, in each case,
through the date of the closing of the repurchase under this Section 9;
provided that the Adjusted Profit Cap shall never be less than zero.

   10. Restrictive Legends. Each certificate representing Option Shares issued
to Company hereunder (other than certificates representing shares sold in a
registered public offering pursuant to Section 7) shall include a legend in
substantially the following form:

  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
  UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE REOFFERED OR
  SOLD ONLY IF SO REGISTERED OR IF AN EXEMPTION FROM SUCH REGISTRATION IS
  AVAILABLE.

   11. Listing. The Parent, upon the request of Company, shall promptly file an
application to list the Parent Shares to be acquired upon exercise of the
Option for quotation on the Nasdaq Stock Market and shall use its reasonable
efforts to obtain approval of such listing as soon as practicable.

   12. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns. Except as set forth in Section 7, nothing contained in this Agreement,
express or implied, is intended to confer upon any person other than the
parties hereto and their respective successors and permitted assigns any rights
or remedies of any nature whatsoever by reason of this Agreement.

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   13. Specific Performance; Fees.

     (a) The parties hereto recognize and agree that if for any reason any of
the provisions of this Agreement are not performed in accordance with their
specific terms or are otherwise breached, immediate and irreparable harm or
injury would be caused for which money damages would not be an adequate remedy.
Accordingly, each party agrees that in addition to other remedies the other
party shall be entitled to an injunction restraining any violation or
threatened violation of the provisions of this Agreement or the right to
enforce any of the covenants or agreements set forth herein by specific
performance. In the event that any action shall be brought in equity to enforce
the provisions of the Agreement, neither party will allege, and each party
hereby waives the defense, that there is an adequate remedy at law.

     (b) If any action, suit or other proceeding (whether at law, in equity or
otherwise) is instituted concerning or arising out of this Agreement or any
transaction contemplated hereunder, the prevailing party shall recover, in
addition to any other remedy granted to such party therein, all such party's
costs and attorneys fees incurred in connection with the prosecution or defense
of such action, suit or other proceeding.

   14. Entire Agreement. This Agreement and the Merger Agreement (including the
appendices and exhibits thereto) constitute the entire agreement between the
parties with respect to the subject matter hereof and supersede all other prior
agreements and understandings, both written and oral, between the parties with
respect to the subject matter hereof.

   15. Further Assurances. Each party will execute and deliver all such further
documents and instruments and take all such further action as may be necessary
in order to consummate the transactions contemplated hereby.

   16. Severability. In the event that any provision of this Agreement or the
application thereof, becomes or is declared by a court of competent
jurisdiction to be illegal, void or unenforceable, the remainder of this
Agreement will continue in full force and effect and the application of such
provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto. The parties further
agree to replace such void or unenforceable provision of this Agreement with a
valid and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of such void or unenforceable provision.

   17. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given upon delivery either personally or by
commercial delivery service, or sent via telecopy (receipt confirmed) to the
parties at the following addresses or telecopy numbers (or at such other
address or telecopy numbers for a party as shall be specified by like notice):

      (a) if to Parent or Merger Sub, to:

      Kana Communications, Inc.
      740 Bay Road
      Redwood City, CA 94063
      Attention: Jay Wood
      Facsimile No.: (650) 474-8506

                                      IV-9
<PAGE>

      with a copy to:

      Brobeck, Phleger & Harrison LLP
      Two Embarcadero Place
      2200 Geng Road
      Palo Alto, CA 94303
      Attention: David Makarechian, Esq.
      Facsimile No.: (650) 496-2885

    (b) if to Company, to:

      Broadbase Software, Inc.
      181 Constitution Drive
      Menlo Park, CA 94025
      Attention: Chuck Bay
      Facsimile No.: (650) 614-8301

      with a copy to:

      Fenwick & West LLP
      275 Battery Street, Suite 1500
      San Francisco, CA 94111
      Attention: David K. Michaels, Esq.

      Facsimile No.: (415) 281-1350

   18. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, regardless of the laws that
might otherwise govern under applicable principles of conflicts of law thereof.

   19. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other party, it being understood that all
parties need not sign the same counterpart.

   20. Expenses. Except as otherwise expressly provided herein or in the Merger
Agreement, all costs and expenses incurred in connection with the transactions
contemplated by this Agreement shall be paid by the party incurring such
expenses.

   21. Amendments; Waiver. This Agreement may be amended by the parties hereto
and the terms and conditions hereof may be waived only by an instrument in
writing signed on behalf of each of the parties hereto, or, in the case of a
waiver, by an instrument signed on behalf of the party waiving compliance.

   22. Assignment. Neither of the parties hereto may sell, transfer, assign or
otherwise dispose of any of its rights or obligations under this Agreement or
the Option created hereunder to any other person, without the express written
consent of the other party, except that the rights and obligations hereunder
shall inure to the benefit of and be binding upon any successor or permitted
assign of a party hereto. No consent shall be required in connection with a
merger, consolidation, reorganization, sale of substantially all assets or
similar transaction with respect to a party hereto. Any purported assignment in
violation of this Section shall be void.

   23. Public Announcement. Parent shall consult with Company and Company shall
consult with Parent before issuing any press release with respect to the
initial announcement of this Agreement or the transactions contemplated hereby
and neither party shall issue any such press release prior to such consultation
except as may be required by law.

                                     IV-10
<PAGE>

   24. Waiver Of Jury Trial. EACH OF PARENT AND COMPANY HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE ACTIONS OF PARENT OR COMPANY IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

                                   * * * * *

                                     IV-11
<PAGE>

   In Witness Whereof, the parties hereto have caused this Stock Option
Agreement to be executed by their duly authorized respective officers as of the
date first written above.

                                          Broadbase Software, Inc

                                          By:
                                          Name: Chuck Bay
                                          Title: Chief Executive Officer

                                          Kana Communications, Inc.

                                          By:
                                          Name: James C. Wood
                                          Title: Chief Executive Officer

                                     IV-12<PAGE>

                                                                   EXHIBIT 10.20

                   FORM OF DISTRIBUTION AND LICENSE AGREEMENT

                                      VI-1
<PAGE>

                       DISTRIBUTION AND LICENSE AGREEMENT

   This Software Distribution License Agreement ("License Agreement") is made
effective as of April 9, 2001 ("Effective Date"), and is made by and between:

   Kana Communications, Inc., a Delaware corporation ("Kana") and Broadbase
Software, Inc., a Delaware corporation ("Broadbase").

   WHEREAS the parties wish to enter into a License Agreement to permit each of
the parties to distribute and otherwise exploit the Licensed Products of the
other (as hereinafter defined), the parties agree as follows:

   1. Definitions. As used in this License Agreement, the following terms shall
have the following meanings:

   "Broadbase Products" means all software owned by Broadbase, and such
software, products and services offered to third parties by Broadbase as of the
Effective Date, and any Updates or Upgrades to such software, products and
services, and new software, products and services offered for sale by
Broadbase, and all documentation associated therewith.

   "Broadbase Trademarks" means all trademarks and service marks registered to
Broadbase and all trademarks and service marks for which Broadbase has applied
for registration.

   "Derivative Work" means any modification, translation, port, adaptation,
extension, improvement, compilation, abridgment or other form in which the
Licensor's Licensed Products may be recast, transformed or adapted for use,
including but not limited to any form which would infringe any copyright to the
Licensor's Licensed Products but for the license granted herein.

   "Intellectual Property" shall mean any or all of the following and all
rights in, arising out of, or associated therewith: (i) all patents and
applications therefor and all reissues, divisions, renewals, extensions,
provisionals, continuations and continuations-in-part thereof; (ii) all
inventions (whether patentable or not), invention disclosures, improvements,
trade secrets, proprietary information, know how, ideas and information,
designs, formulas, algorithms, processes, schematics, technology, technical
data, and all documentation relating to any of the foregoing; (iii) all
copyrights, copyrights registrations and applications therefor, and all other
rights corresponding thereto throughout the world; (iv) all industrial designs
and any registrations and applications therefor throughout the world; (v) all
trade names, URLs, logos, common law trademarks and service marks, trademark
and service mark registrations and applications therefor throughout the world;
(vi) all databases and data collections and all rights therein throughout the
world; (vii) all moral and economic rights of authors and inventors, however
denominated, throughout the world, and (viii) any similar or equivalent rights
to any of the foregoing anywhere in the world.

   "Kana Products" means all software owned by Kana, and such software,
products and services offered to third parties by Kana as of the Effective
Date, and any Updates or Upgrades to such software, products and services, and
new software, products and services offered for sale by Kana during the term of
this License Agreement, and all documentation associated therewith.

   "Kana Trademarks" means all trademarks and service marks registered to Kana
and all trademarks and service marks for which Kana has applied for
registration.

   "Licensed Products" means the Broadbase Products and the Kana Products, as
the context requires.

   "Licensed Trademarks" means the Broadbase Trademarks and the Kana
Trademarks, as the context requires.

   "Merger Agreement" means the Agreement and Plan of Merger entered into as of
April 9, 2001, among Kana, Arrow Acquisition Corporation, and Broadbase.

                                      VI-2
<PAGE>

   "Net Revenue" means each of Broadbase and Kana's invoiced license fees for
the other's Licensed Products less actual returns and applicable taxes or
similar charges imposed by governmental authorities.

   "Updates" means bug fixes, modifications, variations, or enhancements made
to the Licensor's Licensed Products without a significant change in the
functionality of the Licensor's Licensed Products, the packaging (other than to
indicate a change in the version number to the right of the decimal point).

   "Upgrades" means new releases and versions of the Licensor's Licensed
Products that include significant changes to functionality, new functionality,
new packaging or a change in the version number to the left of the decimal
point.

   2. Object Code License. Subject to the terms of this License Agreement, each
party (the "Licensor") hereby grants to the other (the "Licensee"), a world-
wide, nontransferable, nonexclusive, royalty-bearing license under all the
Licensor's Intellectual Property to use, copy, distribute, display and perform
the Licensor's Licensed Products, including but not limited to the right to
sublicense the Licensor's Licensed Products to the Licensee's affiliates, or
sublicense or distribute the Licensor's Licensed Products through multiple
layers of distribution on a stand-alone basis or as integrated or bundled with
their own products or technology or the products or technology of others. Each
Licensee may sublicense the Licensor's Licensed Products by permitting bona
fide distributors and resellers to sell user licenses for the Licensor's
Licensed Products, by permitting duplication and distribution of the Licensor's
Licensed Products by OEMs, and by permitting users to duplicate the Licensor's
Licensed Products in connection with site licenses and similar transactions,
provided that each sublicense is made only pursuant to a valid sublicense
agreement that provides substantially similar protections to Licensor as
Licensor's standard license agreement. Each Licensee shall consult in advance
with its respective Licensor in the event that it wishes to enter into site
licenses, OEM License Agreements or other arrangements or license agreements
that provide for unlimited numbers of seats of the Licensor's Licensed Products
to be distributed or sold for a single price or otherwise allow any third party
to create copies of the Licensor's Licensed Products, and shall not enter into
any such arrangements without the Licensor's concurrence, which concurrence
will not be unreasonably withheld or delayed. Failure to object to any request
for concurrence for such arrangement within ten (10) business days of such
request shall be deemed concurrence. Licensee may modify and may authorize its
licensees to modify the documentation for the Licensor's Licensed Products and
distribute such modified documentation with the Licensor's Licensed Products,
provided that each party or its licensees must retain all the other party's
copyright, trademark and similar notices in such documentation, provided that
notwithstanding the terms of this Agreement, Licensor shall have no liability
to Licensee or any third party with respect to any such modified documentation.
   3. Delivery. Within five (5) days of the Effective Date, the Licensor shall
deliver to the Licensee, in a form or medium agreed by the parties, a
reproducible form of the master versions of the then current version of the
Licensor's Licensed Products.

   4. Source Code License. Each Licensor shall place the source code for the
Licensor's Licensed Products in escrow with such escrow agent as agreed by the
parties, pursuant to the terms of an escrow agreement, a form of which is
attached as Exhibit A. A party's source code shall be released from escrow (the
"Releasing Party") to the other party (the "Beneficiary") upon the occurrence
of one of the following release conditions with respect to the Releasing Party:

   (i) if the Releasing Party:

    (a) becomes the debtor in a voluntary petition under the United States
      Bankruptcy Code;

    (b) commences any proceeding for relief from or adjustment of its debts
      (including without limitation by consenting to or otherwise
      permitting the entry of an order for relief in an involuntary case
      under the United States Bankruptcy Code);

    (c) requests, consents to or permits the appointment of a receiver for
      all or substantially all of its assets; or

    (d) files any court proceeding seeking its liquidation and the winding
      up of its affairs;

                                      VI-3
<PAGE>

   (ii) if the Releasing Party:

    (a) becomes the alleged debtor in an involuntary petition under the
      United States Bankruptcy Code if such petition or proceeding is not
      dismissed within ninety (90) days of filing;

    (b) has filed against it any involuntary proceeding for relief from or
      adjustment of its debts, or requesting the appointment of a receiver
      for all or substantially all of its assets; or

    (c) becomes the subject of any involuntary proceeding for the
      liquidation of the party and the winding up of its affairs if such
      petition or proceeding, in each case, is not dismissed within ninety
      (90) days of filing;

   (iii) if the Releasing Party makes a general assignment for the benefit of
its creditors, or enters into a composition of creditors; or

   (iv) if the Releasing Party adopts necessary board and, if required,
stockholder resolutions for dissolution, liquidation and winding up of its
affairs.

   (v) if the Releasing Party ceases to operate or do business, without there
being a successor; or

   (vi) if the Releasing Party fails to provide maintenance or support of its
Licensed Products in accordance with the standard terms and conditions for such
support, where such failure renders the Licensed Products materially unusable
causing a substantial adverse impact to the business of the Beneficiary and
which failure is not cured within forty-five (45) days of written notice from
the Beneficiary of such failure.

   Subject to the terms of this License Agreement, the Licensor hereby grants
to the Licensee, a world-wide, nontransferable, nonexclusive, royalty-free
license under all Intellectual Property to use, modify, or copy the source code
for Licensor's Licensed Products, create Derivative Works and improvements from
the source code for the Licensor's Licensed Products, and/or distribute such
Derivative Works in object code form.

   5. Restrictions. Each Licensee agrees that under no circumstance shall it,
or shall it cause or permit any third party to, (a) distribute or allow others
to distribute the Licensor's Licensed Products except as contemplated by this
License Agreement, (b) reproduce, modify or copy the Licensor's Licensed
Products and associated documentation except as contemplated by this License
Agreement, or as permitted by the Licensor in writing, or (c) reverse assemble,
reverse compile or reverse engineer the Licensor's Licensed Products, or
otherwise attempt to discover any of the Licensor's Licensed Products source
code or underlying Confidential Information, except as contemplated in Section
4 of this License Agreement. The parties reserve all rights not expressly
granted in this License Agreement.

   6. Ownership of Licensed Products and Derivative Works. As between the
parties, title to and ownership of the Licensor's Licensed Products, and all
Intellectual Property therein, any accompanying printed materials and all
copies and portions thereof shall be and at all times remain in the Licensor.
As between the parties, title to and ownership of the Derivative Works of the
Licensor's Licensed Products created by or on behalf of the Licensee, and all
Intellectual Property therein, any accompanying printed materials and all
copies and portions thereof shall be and at all times remain in the Licensee
creating such Derivative Works, subject to the Licensor's rights to the
Licensor's Licensed Products. Notwithstanding the foregoing, nothing herein
shall restrict Licensor's rights with respect to such Derivative Works to the
extent that they are retained in the memory of Licensor's employees or agents.

   7. Trademark License. Subject to the terms of this Agreement, each Licensor
hereby grants to the Licensee a world-wide, nontransferable, nonexclusive,
royalty-free license to use, copy, distribute and display the Licensor's
Licensed Trademarks, including the right to sublicense the use of such
trademarks through the multiple layers of distribution, solely in connection
with the licensing or other distribution of the Licensor's Licensed Products,
and in accordance with the Licensor's trademark usage guidelines provided to
the Licensee from time to time.

                                      VI-4
<PAGE>

   8. Updates and Upgrades. At no cost to either party, other than as provided
in Section 9, each Licensor shall provide the Licensee with all Updates and
Upgrades as soon as such Updates and Upgrades are made generally available.

   9. Maintenance and Support. Each Licensor shall provide to the Licensee all
maintenance and support related to the Licensor's Licensed Products that is
offered to others on terms consistent with those generally offered to any other
person with respect to such maintenance and support.

   10. Royalties. Each Licensee shall pay to the Licensor royalties equal to
ten percent (10%) of Net Revenue from the distribution or other commercial
exploitation of the Licensor's Licensed Products on a stand-alone basis, and to
the extent that the Licensor's Licensed Products are bundled with the
Licensee's own products, Licensee shall pay to Licensor royalties equal to ten
percent (10%) of that portion of the Net Revenue for such bundled product that
is reasonably attributable to the Licensor's Licensed Products. No royalties
shall be payable with respect to Licensed Products that are used internally by
the Licensee or Beneficiary or its affiliates for non-revenue generating
activities, or made available to third parties for evaluation or promotional
purposes, provided that any such evaluation or promotional use shall not be for
a period more than thirty (30) days without Licensor's prior written consent.
Royalties payable pursuant to this Section 10 shall be calculated and paid, on
a quarterly basis, not more than thirty (30) days after the last day of the
fiscal quarter in which the Net Revenue giving rise to such royalties are
recognized.

   11. Audit. Each party shall deliver to the other along with its payment of
royalties due for each quarter, a written report showing, in detail, its
calculation of royalties payable with respect to such quarter. Each party shall
keep, maintain and preserve for at least two (2) years following the quarter in
which the Net Revenue giving rise to royalties is recognized by such party,
accurate records relating to such royalties. Such records shall be Confidential
Information, but shall be available for inspection and audit as provided
herein. Each party shall have the right no more than once per calendar year to
have an independent public accountant, reasonably acceptable to the other,
examine the other party's relevant books, records and accounts for the purpose
of verifying the accuracy of payments made as required under this License
Agreement. Each party acknowledges and agrees that such accountant shall not
have access to the books, records, and accounts relating to other products or
services except as such books, records and accounts also directly relate to the
payments due hereunder. Each audit will be conducted at the audited party's
place of business, or other place agreed to by the parties, during the audited
party's normal business hours and with at least five (5) business days prior
written notice. Each party shall pay the fees and expenses of its auditor for
the examination; provided that should any examination disclose a greater than
five percent (5%) shortfall in the payments due for the period being audited,
the audited party shall pay the reasonable fees and expenses of the auditor for
that examination.

   12. Confidentiality.

   a. Each party ("Receiving Party") agrees to keep confidential and not
disclose or use except as contemplated by this License Agreement, confidential
information related to the other party's ("Disclosing Party") technology or
business that is provided to the Receiving Party in connection with this
License Agreement, the source code of any Kana Products and any other
information received from the Disclosing Party that is stamped or marked as
Confidential by the Disclosing Party, including without limitation, any
information disclosed orally that the Disclosing Party identifies as
confidential by written notice to the Receiving Party within thirty (30) days
of such disclosure, or information that would reasonably be expected to be
confidential from its context ("Confidential Information").

   b. "Confidential Information" shall not include information the Receiving
Party can document (a) is in or (through no improper action or inaction by the
Receiving Party or any affiliate, agent or employee) enters the public domain,
or (b) was rightfully in the Receiving Party's possession or known by it prior
to receipt from the Disclosing Party, or (c) was rightfully disclosed to the
Receiving Party by another person without restriction, or (d) was independently
developed by the Receiving Party by persons without access to such information
and without use of any Confidential Information of the Disclosing Party.

                                      VI-5
<PAGE>

   c. Each party, with prior written notice to the Disclosing Party, may
disclose such Confidential Information required to be disclosed to a
governmental entity or agency, or pursuant to the lawful requirement or order
of a governmental entity or agency, provided that reasonable measures are taken
to guard against further disclosure, including without limitation, seeking
appropriate confidential treatment or a protective order, or assisting the
other party to do so.

   d. The Receiving Party acknowledges and agrees that due to the unique nature
of the Disclosing Party's Confidential Information, there can be no adequate
remedy at law for any breach of its obligations hereunder, that any such breach
may allow the Receiving Party or third parties to unfairly compete with the
Disclosing Party resulting in irreparable harm to the Disclosing Party, and
therefore, that upon any such breach or any threat thereof, the Disclosing
Party shall be entitled to seek appropriate equitable relief in addition to
whatever remedies it might have at law. The Receiving Party will notify the
Disclosing Party in writing immediately upon the occurrence of any such
unauthorized release or other breach. Any breach of this Section 12 will
constitute a material breach of this License Agreement.

   13. Limited Warranty and Disclaimer. Each Licensor warrants that, for a
period of ninety (90) days from the date of delivery of the Licensor Licensed
Products, (a) the Licensor's Licensed Products shall perform substantially in
accordance with the documentation therefor, and (b) the media upon which the
Licensor's Licensed Products are provided to the Licensee shall be free from
defects in material and workmanship under normal use. This warranty covers only
problems reported to the Licensor during the warranty period. WARRANTY
DISCLAIMER: EXCEPT AS EXPRESSLY STATED HEREIN, EACH LICENSOR'S LICENSED
PRODUCTS ARE PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED,
INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF PERFORMANCE OR MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT. EACH LICENSEE BEARS ALL
RISK RELATING TO QUALITY AND PERFORMANCE OF THE LICENSOR'S LICENSED PRODUCTS.
The performance of each Licensor's Licensed Products varies with various
manufacturers' equipment with which it is used. Each Licensor does not warrant
that the Licensor's Licensed Products or the functions contained in the
Licensor's Licensed Products will meet the Licensee's requirements, operate
without interruption or be error free. The exclusive remedy for breach by each
Licensor of its limited warranty set forth above shall be replacement of any
defective Licensor's Licensed Product or medium upon its return to the Licensor
within the warranty period.

   14. Limitation of Remedies and Damages. EXCEPT FOR BREACHES OF SECTION 12
PERTAINING TO CONFIDENTIALITY AND THE INDEMNITY OBLIGATIONS IN SECTION 15,
NEITHER PARTY SHALL BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER
OF THIS LICENSE AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY
CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY (A) FOR LOSS OR
INACCURACY OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR
TECHNOLOGY, OR (B) FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES
INCLUDING, BUT NOT LIMITED TO LOSS OF REVENUES, LOSS OF PROFITS, BUSINESS
INTERRUPTION, LOSS OR INACCURACY OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE
GOODS, ARISING OUT OF THE USE OF OR INABILITY TO USE THE LICENSED PRODUCTS,
EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT
FOR BREACHES OF SECTION 12 PERTAINING TO CONFIDENTIALITY AND INDEMNITY
OBLIGATIONS IN SECTION 15, IN NO EVENT WILL A PARTY'S LIABILITY EXCEED THE
TOTAL ROYALTIES PAID BY THE PARTIES PURSUANT TO THIS AGREEMENT. NEITHER PARTY
SHALL BE RESPONSIBLE FOR ANY MATTER BEYOND ITS REASONABLE CONTROL. Because some
jurisdictions do not allow the exclusion or limitation of liability of
consequential or incidental damages, the above limitation may not apply.

   15. Indemnity.

   a. Each party (the "Indemnifying Party") shall defend, indemnify and save
harmless the other, their respective affiliates, directors, officers,
employees, agents and independent contractors (the Indemnified Parties") from
any and all claims, costs, damages, and expenses (including but not limited to
reasonable

                                      VI-6
<PAGE>

attorney's fees) incurred by the Indemnified Parties that are attributable to
any claim, demand or cause of action asserting that any Indemnifying Party's
Licensed Product infringes any U.S. patent, copyright, trademark or trade
secret, provided that the Indemnified Parties tender sole control of the
defense and settlement of such claim to the Indemnifying Party and reasonably
cooperates in the defense thereof, provided that the Licensor shall have no
obligation hereunder to the extent that any such claim, cost, damage or expense
is based upon Licensee's use of a modified or superseded Licensed Product.

   b. In the event of an occurrence of a Release Condition, and Beneficiary's
creation of any Derivative Works pursuant to the license granted in Section 4,
the Beneficiary shall defend, indemnify and save harmless the Releasing Party,
its affiliates, and their respective directors, officers, employees, agents and
independent contractors from any and all claims, costs, damages, and expenses
(including but not limited to reasonable attorney's fees) incurred by the
Releasing Party that are attributable to any claim, demand or cause of action
asserting that any Derivative Work created by the Beneficiary pursuant to the
license granted in Section 4 infringes any U.S. patent, copyright, trademark or
trade secret, provided that the Releasing Party tenders sole control of the
defense and settlement of such claim to the Beneficiary and reasonably
cooperates in the defense thereof.

   16. Termination. This License Agreement shall continue in effect for five
(5) years from the Effective Date ("Initial Term"), and shall renew
automatically for additional one year terms ("Renewal Term") unless either
party provides the other party with notice of termination of the Agreement at
least sixty (60) days prior to the end of the applicable Initial Term or
Renewal Term. A party not in default under this Agreement may terminate this
Agreement upon a material breach of this Agreement by the other party that is
not cured within thirty (30) days of the breaching party's receipt of notice of
such breach.

   17. Nonassignability. Unless otherwise provided in this License Agreement,
neither the rights nor the obligations arising under this License Agreement are
assignable or transferable by either party without the other party's prior
written consent, and any such attempted assignment or transfer shall be deemed
an uncurable breach, permitting the non-breaching party to immediately
terminate the licenses and rights granted to the breaching party hereunder. For
the purposes of this Section 17, any change of control of a party shall be
deemed an assignment by such party.

   18. Execution of License Agreement, Controlling Law, Attorneys' Fee. This
License Agreement shall become effective as of the Effective Date and only upon
its execution by both Kana and Broadbase. This License Agreement shall be
governed by and construed in accordance with the laws of the State of
California without regard to the conflicts of law provisions thereof and
without regard to the United Nations Convention on the International Sales of
Goods. In any action to enforce this License Agreement the prevailing party
will be entitled to costs and attorneys' fees.

   19. Equitable Relief. The parties acknowledges and agrees that due to the
unique nature of Confidential Information, there can be no adequate remedy at
law for any breach of its obligations hereunder, that any such breach may allow
Receiving Party or third parties to unfairly compete with the Disclosing Party
resulting in irreparable harm to the Disclosing Party and, therefore, that upon
any such breach or threat thereof, the Disclosing Party shall be entitled to
seek injunctions and other appropriate equitable relief, in addition to
whatever remedies it may have at law.

   20. Notice. Any notice, report, approval or consent required or permitted
hereunder shall be in writing and will be deemed to have been effectively
given: (i) immediately upon personal delivery or facsimile transmission to the
parties to be notified, (ii) one (1) day after deposit with a commercial
overnight courier with tracking capabilities, or (iii) three (3) days after
deposit with the United States Postal Service, by registered or certified mail,
postage prepaid to the respective addresses of the parties as set forth above.

   21. Waiver. The waiver by either party of a breach of this License Agreement
or any right hereunder shall not constitute a waiver of any subsequent breach
of this License Agreement; nor shall any delay by either

                                      VI-7
<PAGE>

party to exercise any right under this License Agreement operate as a waiver of
any such right. If any provision of this License Agreement shall be adjudged by
any court of competent jurisdiction to be unenforceable or invalid, that
provision shall be limited or eliminated to the minimum extent necessary so
that this License Agreement shall otherwise remain in full force and effect and
enforceable.

   22. Basis of Bargain. EACH PARTY RECOGNIZES AND AGREES THAT THE WARRANTY
DISCLAIMERS AND LIABILITY AND REMEDY LIMITATIONS IN THIS LICENSE AGREEMENT ARE
MATERIAL BARGAINED FOR BASES OF THIS LICENSE AGREEMENT AND THAT THEY HAVE BEEN
TAKEN INTO ACCOUNT AND REFLECTED IN DETERMINING THE CONSIDERATION TO BE GIVEN
BY EACH PARTY UNDER THIS LICENSE AGREEMENT AND IN THE DECISION BY EACH PARTY TO
ENTER INTO THIS LICENSE AGREEMENT.

   23. Entire License Agreement. This License Agreement constitutes the entire
License Agreement between the parties hereto related to the subject matter
hereof. Any modifications of this License Agreement must be in writing and
signed by both parties hereto.

   24. Independent Contractors. The parties to this Agreement are independent
contractors. There is no relationship of partnership, joint venture,
employment, franchise, or agency between the parties. Neither party will have
the power to bind the other or incur obligations on the other's behalf without
the other's prior written consent.

   25. Survival. Sections 5, 6, 10, 11, 12, 14, 13, 15, 18, 19, 20, 21, 22, 23,
24, and 25 shall survive any termination or expiration of this License
Agreement.

   26. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other party, it being understood that all
parties need not sign the same counterpart.

   IN WITNESS WHEREOF, the parties hereto have executed this License Agreement
as of the Effective Date.

KANA COMMUNICATIONS, INC.                 BROADBASE SOFTWARE, INC.

_____________________________________     _____________________________________
By                                        By

James C. Wood                             Chuck Bay
_____________________________________     _____________________________________
Name (Print)                              Name (Print)

Chief Executive Officer                   Chief Executive Officer
_____________________________________     _____________________________________
Title                                     Title

                                      VI-8
<PAGE>

                                                                       EXHIBIT A

                            FORM OF ESCROW AGREEMENT

                    COMPREHENSIVE PREFERRED ESCROW AGREEMENT

                                 Account Number

   This Agreement is effective                   , 2001 among
("Escrow Agent"),           ("Depositor") and            ("Preferred
Beneficiary"), who collectively may be referred to in this Agreement as "the
parties."

   A. Depositor and Preferred Beneficiary have entered or will enter into a
distribution and license agreement regarding certain proprietary technology of
Depositor (referred to in this Agreement as "the License Agreement").

   B. Depositor desires to avoid disclosure of its proprietary technology
except under certain limited circumstances.

   C. The availability of the proprietary technology of Depositor is critical
to Preferred Beneficiary in the conduct of its business and, therefore,
Preferred Beneficiary needs access to the proprietary technology under certain
limited circumstances.

   D. Depositor and Preferred Beneficiary desire to establish an escrow with
Escrow Agent to provide for the retention, administration and controlled access
of the proprietary technology materials of Depositor.

   E. The parties desire this Agreement to be supplementary to the License
Agreement pursuant to 11 United States [Bankruptcy] Code, Section 365(n).

                              ARTICLE 1--DEPOSITS

   1.1 Obligation to Make Deposit. Upon the signing of this Agreement by the
parties, Depositor shall deliver to Escrow Agent the proprietary technology and
other materials ("Deposit Materials") required to be deposited by the License
Agreement or, if the License Agreement does not identify the materials to be
deposited with Escrow Agent, then such materials will be identified on an
Exhibit B1. If Exhibit B1 is applicable, it is to be prepared and signed by
Depositor and Preferred Beneficiary. Escrow Agent shall have no obligation with
respect to the preparation, signing or delivery of Exhibit B1.

   1.2 Identification of Tangible Media. Prior to the delivery of the Deposit
Materials to Escrow Agent, Depositor shall conspicuously label for
identification each document, magnetic tape, disk, or other tangible media upon
which the Deposit Materials are written or stored. Additionally, Depositor
shall complete Exhibit B2 to this Agreement by listing each such tangible media
by the item label description, the type of media and the quantity. The Exhibit
B2 must be signed by Depositor and delivered to Escrow Agent with the Deposit
Materials. Unless and until Depositor makes the initial deposit with Escrow
Agent, Escrow Agent shall have no obligation with respect to this Agreement,
except the obligation to notify the parties regarding the status of the deposit
account as required in Section 2.2 below.

   1.3 Deposit Inspection. When Escrow Agent receives the Deposit Materials and
the Exhibit B2, Escrow Agent will conduct a deposit inspection by visually
matching the labeling of the tangible media containing the Deposit Materials to
the item descriptions and quantity listed on the Exhibit B2. In addition to the
deposit inspection, Preferred Beneficiary may elect to cause a verification of
the Deposit Materials in accordance with Section 1.6 below.

   1.4 Acceptance of Deposit. At completion of the deposit inspection, if
Escrow Agent determines that the labeling of the tangible media matches the
item descriptions and quantity on Exhibit B2, Escrow Agent will date and sign
the Exhibit B2 and mail a copy thereof to Depositor and Preferred Beneficiary.
If Escrow Agent

                                      VI-9
<PAGE>

determines that the labeling does not match the item descriptions or quantity
on the Exhibit B2, Escrow Agent will (a) note the discrepancies in writing on
the Exhibit B2; (b) date and sign the Exhibit B2 with the exceptions noted; and
(c) mail a copy of the Exhibit B2 to Depositor and Preferred Beneficiary.
Escrow Agent's acceptance of the deposit occurs upon the signing of the Exhibit
B2 by Escrow Agent. Delivery of the signed Exhibit B2 to Preferred Beneficiary
is Preferred Beneficiary's notice that the Deposit Materials have been received
and accepted by Escrow Agent.

   1.5 Depositor's Representations. Depositor represents as follows:

  a. Depositor lawfully possesses all of the Deposit Materials deposited with
    Escrow Agent;

  b. With respect to all of the Deposit Materials, Depositor has the right
    and authority to grant to Escrow Agent and Preferred Beneficiary the
    rights as provided in this Agreement;

  c. The Deposit Materials are not subject to any lien or other encumbrance;

  d. The Deposit Materials consist of the proprietary technology and other
    materials identified either in the License Agreement or Exhibit B1, as
    the case may be; and

  e. The Deposit Materials are readable and useable in their current form or,
    if any portion of the Deposit Materials is encrypted, the decryption
    tools and decryption keys have also been deposited.

   1.6 Verification. Escrow Agent shall perform a Level I verification of the
Deposit Materials upon the initial deposit and for each update. A verification
determines, in different levels of detail, the accuracy, completeness,
sufficiency and quality of the Deposit Materials. A Level I verification is
defined as follows: Escrow Agent will cause a technically qualified Escrow
Agent employee to evaluate the Deposit Materials in order to identify (a) the
hardware and software configurations reasonably necessary to maintain the
Deposit Materials; (b) the hardware and software configurations reasonably
necessary to compile the Deposit Materials; and (c) the compilation
instructions. Escrow Agent will then prepare and deliver to Depositor and
Preferred Beneficiary a report describing the information so identified. It
shall be the responsibility of the Depositor, and not Escrow Agent, to ensure
that the Deposit Materials contain the information so identified in Escrow
Agent's report, as well as any other information that may be required in the
License Agreement.

   Preferred Beneficiary shall have the right, at Preferred Beneficiary's
expense, to cause higher levels of verification of any Deposit Materials.
Preferred Beneficiary shall notify Depositor and Escrow Agent of Preferred
Beneficiary's request for verification. Depositor shall have the right to be
present at the verification. If a verification is elected after the Deposit
Materials have been delivered to Escrow Agent, then only Escrow Agent, or at
Escrow Agent's election an independent person or company selected and
supervised by Escrow Agent, may perform the verification.

   1.7 Deposit Updates. Unless otherwise provided by the License Agreement,
Depositor shall update the Deposit Materials within 10 days of each release of
a new version of the product which is subject to the License Agreement. Such
updates will be added to the existing deposit. All deposit updates shall be
listed on a new Exhibit B2 and the new Exhibit B2 shall be signed by Depositor.
Each Exhibit B2 will be held and maintained separately within the escrow
account. An independent record will be created which will document the activity
for each Exhibit B2. The processing of all deposit updates shall be in
accordance with Sections 1.2 through 1.6 above. All references in this
Agreement to the Deposit Materials shall include the initial Deposit Materials
and any updates.

   Escrow Agent shall notify Depositor in writing semi-annually of Depositor's
obligation to make updated deposits. Within 30 days of receipt of each such
notice, Depositor shall certify in writing to Escrow Agent that (a) it has made
the updated deposits as required in the immediately preceding paragraph; or (b)
there has not been a release of a new version of the product since the last
deposit. After the 30 days, Escrow Agent shall

                                     VI-10
<PAGE>

notify Preferred Beneficiary that Escrow Agent has received (a) an updated
deposit from Depositor; (b) a statement from Depositor advising there has not
been a release of a new version of the product since the last deposit; or (c)
no response from Depositor. Unlimited deposit updates and two storage units are
included in the fees for this Agreement.

   1.8 Removal of Deposit Materials. The Deposit Materials may be removed
and/or exchanged only on written instructions signed by Depositor and Preferred
Beneficiary, or as otherwise provided in this Agreement.

                 ARTICLE 2--CONFIDENTIALITY AND RECORD KEEPING

   2.1 Confidentiality. Escrow Agent shall maintain the Deposit Materials in a
secure, environmentally safe, locked facility which is accessible only to
authorized representatives of Escrow Agent. Escrow Agent shall have the
obligation to reasonably protect the confidentiality of the Deposit Materials.
Except as provided in this Agreement, Escrow Agent shall not disclose,
transfer, make available, or use the Deposit Materials. Escrow Agent shall not
disclose the content of this Agreement to any third party. If Escrow Agent
receives a subpoena or other order of a court or other judicial tribunal
pertaining to the disclosure or release of the Deposit Materials, Escrow Agent
will immediately notify the parties to this Agreement unless prohibited by law.
It shall be the responsibility of Depositor and/or Preferred Beneficiary to
challenge any such order; provided, however, that Escrow Agent does not waive
its rights to present its position with respect to any such order. Escrow Agent
will not be required to disobey any court or other judicial tribunal order.
(See Section 7.5 below for notices of requested orders.)

   2.2 Status Reports. Escrow Agent will issue to Depositor and Preferred
Beneficiary a report profiling the account history at least semi-annually.
Escrow Agent may provide copies of the account history pertaining to this
Agreement upon the request of any party to this Agreement.

   2.3 Audit Rights. During the term of this Agreement, Depositor and Preferred
Beneficiary shall each have the right to inspect the written records of Escrow
Agent pertaining to this Agreement. Any inspection shall be held during normal
business hours and following reasonable prior notice.

                   ARTICLE 3--GRANT OF RIGHTS TO ESCROW AGENT

   3.1 Title to Media. Depositor hereby transfers to Escrow Agent the title to
the media upon which the proprietary technology and materials are written or
stored. However, this transfer does not include the ownership of the
proprietary technology and materials contained on the media such as any
copyright, trade secret, patent or other intellectual property rights.

   3.2 Right to Make Copies. Escrow Agent shall have the right to make copies
of the Deposit Materials as reasonably necessary to perform this Agreement.
Escrow Agent shall copy all copyright, nondisclosure, and other proprietary
notices and titles contained on the Deposit Materials onto any copies made by
Escrow Agent. With all Deposit Materials submitted to Escrow Agent, Depositor
shall provide any and all instructions as may be necessary to duplicate the
Deposit Materials including but not limited to the hardware and/or software
needed.

   3.3 Right to Transfer Upon Release. Depositor hereby grants to Escrow Agent
the right to transfer the Deposit Materials to Preferred Beneficiary upon any
release of the Deposit Materials for use by Preferred Beneficiary in accordance
with Section 4.5. Except upon such a release or as otherwise provided in this
Agreement, Escrow Agent shall not transfer the Deposit Materials.

                                     VI-11
<PAGE>

                         ARTICLE 4--RELEASE OF DEPOSIT

   Escrow Agent shall release the Deposit Materials in accordance with the
procedures set forth in this agreement on the occurrence on any one of the
following:

   (i) if the Releasing Party:

    (a) becomes the debtor in a voluntary petition under the United States
      Bankruptcy Code;

    (b) commences any proceeding for relief from or adjustment of its debts
      (including without limitation by consenting to or otherwise
      permitting the entry of an order for relief in an involuntary case
      under the United States Bankruptcy Code);

    (c) requests, consents to or permits the appointment of a receiver for
      all or substantially all of its assets; or

    (d) files any court proceeding seeking its liquidation and the winding
      up of its affairs;

   (ii) if the Releasing Party:

    (a) becomes the alleged debtor in an involuntary petition under the
      United States Bankruptcy Code if such petition or proceeding is not
      dismissed within ninety (90) days of filing;

    (b) has filed against it any involuntary proceeding for relief from or
      adjustment of its debts, or requesting the appointment of a receiver
      for all or substantially all of its assets; or

    (c) becomes the subject of any involuntary proceeding for the
      liquidation of the party and the winding up of its affairs if such
      petition or proceeding, in each case, is not dismissed within ninety
      (90) days of filing;

   (iii) if the Releasing Party makes a general assignment for the benefit of
its creditors, or enters into a composition of creditors; or

   (iv) if the Releasing Party adopts necessary board and, if required,
stockholder resolutions for dissolution, liquidation and winding up of its
affairs.

   (v) if the Releasing Party ceases to operate or do business, without there
being a successor; or

   (vi) if the Releasing Party fails to provide maintenance or support of its
Licensed Products in accordance with the standard terms and conditions for such
support, where such failure renders the Licensed Products materially unusable
causing a substantial adverse impact to the business of the Beneficiary and
which failure is not cured within forty-five (45) days of written notice from
the Beneficiary of such failure (collectively, "Release Conditions").

   4.2 Filing For Release. If Preferred Beneficiary believes in good faith that
a Release Condition has occurred, Preferred Beneficiary may provide to Escrow
Agent written notice of the occurrence of the Release Condition and a request
for the release of the Deposit Materials. Upon receipt of such notice, Escrow
Agent shall provide a copy of the notice to Depositor by commercial express
mail.

   4.3 Contrary Instructions. From the date Escrow Agent mails the notice
requesting release of the Deposit Materials, Depositor shall have five business
days to deliver to Escrow Agent contrary instructions. "Contrary Instructions"
shall mean the written representation by Depositor that a Release Condition has
not occurred or has been cured. Upon receipt of Contrary Instructions, Escrow
Agent shall send a copy to Preferred Beneficiary by commercial express mail.
Additionally, Escrow Agent shall notify both Depositor and Preferred
Beneficiary that there is a dispute to be resolved pursuant to the Dispute
Resolution section (Section 7.3) of this Agreement. Subject to Section 5.2,
Escrow Agent will continue to store the Deposit Materials without release
pending (a) joint instructions from Depositor and Preferred Beneficiary; (b)
resolution pursuant to the Dispute Resolution provisions; or (c) order of a
court.

                                     VI-12
<PAGE>

   4.4 Release of Deposit. If Escrow Agent does not receive Contrary
Instructions from the Depositor, Escrow Agent is authorized to release the
Deposit Materials to the Preferred Beneficiary or, if more than one beneficiary
is registered to the deposit, to release a copy of the Deposit Materials to the
Preferred Beneficiary. However, Escrow Agent is entitled to receive any fees
due Escrow Agent before making the release. Any copying expense in excess of
$300 will be chargeable to Preferred Beneficiary. This Agreement will terminate
upon the release of the Deposit Materials held by Escrow Agent.

   4.5 Right to Use Following Release. Unless otherwise provided in the License
Agreement, upon release of the Deposit Materials in accordance with this
Article 4, Preferred Beneficiary shall have the right to use the Deposit
Materials for the sole purpose of exercising its rights pursuant to the License
Agreement. Preferred Beneficiary shall be obligated to maintain the
confidentiality of the released Deposit Materials.

                        ARTICLE 5--TERM AND TERMINATION

   5.1 Term of Agreement. The initial term of this Agreement is for a period of
     years from the effective date of the License Agreement. Thereafter, this
Agreement shall automatically renew from year-to-year unless (a) Depositor and
Preferred Beneficiary jointly instruct Escrow Agent in writing that the
Agreement is terminated; or (b) the Agreement is terminated by Escrow Agent for
nonpayment in accordance with Section 5.2.

   5.2 Termination for Nonpayment. In the event of the nonpayment of fees owed
to Escrow Agent, Escrow Agent shall provide written notice of delinquency to
all parties to this Agreement. Any party to this Agreement shall have the right
to make the payment to Escrow Agent to cure the default. If the past due
payment is not received in full by Escrow Agent within one month of the date of
such notice, then Escrow Agent shall have the right to terminate this Agreement
at any time thereafter by sending written notice of termination to all parties.
Escrow Agent shall have no obligation to take any action under this Agreement
so long as any payment due to Escrow Agent remains unpaid.

   5.3 Disposition of Deposit Materials Upon Termination. Upon termination of
this Agreement, Escrow Agent shall destroy, return, or otherwise deliver the
Deposit Materials in accordance with Depositor's instructions. If there are no
instructions, Escrow Agent may, at its sole discretion, destroy the Deposit
Materials or return them to Depositor. Escrow Agent shall have no obligation to
return or destroy the Deposit Materials if the Deposit Materials are subject to
another escrow agreement with Escrow Agent.

   5.4 Survival of Terms Following Termination. Upon termination of this
Agreement, the following provisions of this Agreement shall survive:

  a. Depositor's Representations (Section 1.5);

  b. The obligations of confidentiality with respect to the Deposit
    Materials;

  c. The rights granted in the sections entitled Right to Transfer Upon
    Release (Section 3.3) and Right to Use Following Release (Section 4.5),
    if a release of the Deposit Materials has occurred prior to termination;

  d. The obligation to pay Escrow Agent any fees and expenses due;

  e. The provisions of Article 7; and

  f. Any provisions in this Agreement which specifically state they survive
    the termination or expiration of this Agreement.

                                     VI-13
<PAGE>

                         ARTICLE 6--ESCROW AGENT'S FEES

   6.1 Fee Schedule. Escrow Agent is entitled to be paid its standard fees and
expenses applicable to the services provided. Escrow Agent shall notify the
party responsible for payment of Escrow Agent's fees at least 60 days prior to
any increase in fees. For any service not listed on Escrow Agent's standard fee
schedule, Escrow Agent will provide a quote prior to rendering the service, if
requested.

   6.2 Payment Terms. Escrow Agent shall not be required to perform any service
unless the payment for such service and any outstanding balances owed to Escrow
Agent are paid in full. Fees are due upon receipt of a signed contract or
receipt of the Deposit Materials whichever is earliest. If invoiced fees are
not paid, Escrow Agent may terminate this Agreement in accordance with Section
5.2. Late fees on past due amounts shall accrue interest at the rate of one and
one-half percent per month (18% per annum) from the date of the invoice.

                       ARTICLE 7--LIABILITY AND DISPUTES

   7.1 Right to Rely on Instructions. Escrow Agent may act in reliance upon any
instruction, instrument, or signature reasonably believed by Escrow Agent to be
genuine. Escrow Agent may assume that any employee of a party to this Agreement
who gives any written notice, request, or instruction has the authority to do
so. Escrow Agent will not be required to inquire into the truth or evaluate the
merit of any statement or representation contained in any notice or document.
Escrow Agent shall not be responsible for failure to act as a result of causes
beyond the reasonable control of Escrow Agent.

   7.2 Indemnification. Depositor and Preferred Beneficiary each agree to
indemnify, defend and hold harmless Escrow Agent from any and all claims,
actions, damages, arbitration fees and expenses, costs, attorney's fees and
other liabilities ("Liabilities") incurred by Escrow Agent relating in any way
to this escrow arrangement unless such Liabilities were caused solely by the
negligence or willful misconduct of Escrow Agent.

   7.3 Dispute Resolution. Any dispute relating to or arising from this
Agreement shall be resolved by arbitration under the Commercial Rules of the
American Arbitration Association. Three arbitrators shall be selected. The
Depositor and Preferred Beneficiary shall each select one arbitrator and the
two chosen arbitrators shall select the third arbitrator, or failing agreement
on the selection of the third arbitrator, the American Arbitration Association
shall select the third arbitrator. However, if Escrow Agent is a party to the
arbitration, Escrow Agent shall select the third arbitrator. Unless otherwise
agreed by Depositor and Preferred Beneficiary, arbitration will take place in
Santa Clara County, California, U.S.A. Any court having jurisdiction over the
matter may enter judgment on the award of the arbitrator(s). Service of a
petition to confirm the arbitration award may be made by First Class mail or by
commercial express mail, to the attorney for the party or, if unrepresented, to
the party at the last known business address.

   7.4 Controlling Law. This Agreement is to be governed and construed in
accordance with the laws of the State of California, without regard to its
conflict of law provisions.

   7.5 Notice of Requested Order. If any party intends to obtain an order from
the arbitrator or any court of competent jurisdiction which may direct Escrow
Agent to take, or refrain from taking any action, that party shall:

  a. Give Escrow Agent at least two business days' prior notice of the
    hearing;

  b. Include in any such order that, as a precondition to Escrow Agent's
    obligation, Escrow Agent be paid in full for any past due fees and be
    paid for the reasonable value of the services to be rendered pursuant to
    such order; and

  c. Ensure that Escrow Agent not be required to deliver the original (as
    opposed to a copy) of the Deposit Materials if Escrow Agent may need to
    retain the original in its possession to fulfill any of its other duties.

                                     VI-14
<PAGE>

                         ARTICLE 8--GENERAL PROVISIONS

   8.1 Entire Agreement. This Agreement, which includes the Exhibits described
herein, embodies the entire understanding among the parties with respect to its
subject matter and supersedes all previous communications, representations or
understandings, either oral or written. Escrow Agent is not a party to the
License Agreement between Depositor and Preferred Beneficiary and has no
knowledge of any of the terms or provisions of any such Webpay Agreements.
Escrow Agent's only obligations to Depositor or Preferred Beneficiary are as
set forth in this Agreement. No amendment or modification of this Agreement
shall be valid or binding unless signed by all the parties hereto, except that
Exhibit B1 need not be signed by Escrow Agent, Exhibit B2 need not be signed by
Preferred Beneficiary and Exhibit B3 need not be signed.

   8.2 Notices. All notices, invoices, payments, deposits and other documents
and communications shall be given to the parties at the addresses specified in
the attached Exhibit B3. It shall be the responsibility of the parties to
notify each other as provided in this Section in the event of a change of
address. The parties shall have the right to rely on the last known address of
the other parties. Unless otherwise provided in this Agreement, all documents
and communications may be delivered by First Class mail.

   8.3 Severability. In the event any provision of this Agreement is found to
be invalid, voidable or unenforceable, the parties agree that unless it
materially affects the entire intent and purpose of this Agreement, such
invalidity, voidability or unenforceability shall affect neither the validity
of this Agreement nor the remaining provisions herein, and the provision in
question shall be deemed to be replaced with a valid and enforceable provision
most closely reflecting the intent and purpose of the original provision.

   8.4 Successors. This Agreement shall be binding upon and shall inure to the
benefit of the successors and assigns of the parties. However, Escrow Agent
shall have no obligation in performing this Agreement to recognize any
successor or assign of Depositor or Preferred Beneficiary unless Escrow Agent
receives clear, authoritative and conclusive written evidence of the change of
parties.

   8.5 Regulations. Depositor and Preferred Beneficiary are responsible for and
warrant compliance with all applicable laws, rules and regulations, including
but not limited to customs laws, import, export, and re-export laws and
government regulations of any country from or to which the Deposit Materials
may be delivered in accordance with the provisions of this Agreement.

_____________________________________     _____________________________________
Depositor                                 Preferred Beneficiary

By: _________________________________     By: _________________________________

Name: _______________________________     Name: _______________________________

Title: ______________________________     Title: ______________________________

Date: _______________________________     Date: _______________________________

                     Escrow Agent

                     By: _________________________________

                     Name: _______________________________

                     Title: ______________________________

                     Date: _______________________________

                                     VI-15
<PAGE>

                                                                      EXHIBIT B1

                           MATERIALS TO BE DEPOSITED

                                 Account Number

   Depositor represents to Preferred Beneficiary that Deposit Materials
delivered to Escrow Agent shall consist of the following:

-------------------------------------   ----------------------------------------
Depositor                                 Preferred Beneficiary

By: _________________________________     By: _________________________________

Name: _______________________________     Name: _______________________________

Title: ______________________________     Title: ______________________________

Date: _______________________________     Date: _______________________________

                                     VI-16
<PAGE>

                                                                      EXHIBIT B2

                        DESCRIPTION OF DEPOSIT MATERIALS

Depositor Company Name _________________________________________________________

Account Number _________________________________________________________________

Product Name __________________________________________________________ Version
 (Product Name will appear as the Exhibit B2 Name on Account History report)

DEPOSIT MATERIAL DESCRIPTION:

<TABLE>
<CAPTION>
                                     Label
                                  Description
                                    of Each
                                    Separate
 Quantity Media Type & Size           Item
 -------- -----------------       -----------
 <C>      <C>                     <S>
          Disk 3.50 or
 ---
          DAT tape     mm
 ---
          CD-ROM
 ---
          Data cartridge tape
 ---
          TK 70 or     tape
 ---
          Magnetic tape
 ---
          Documentation
 ---
          Other
 ---
</TABLE>

PRODUCT DESCRIPTION:

Environment ____________________________________________________________________

DEPOSIT MATERIAL INFORMATION:

Is the media or are any of the files encrypted? Yes / No
If yes, please include any passwords and the decryption tools.

Encryption tool name __________________________________________________ Version

Hardware required ______________________________________________________________

Software required ______________________________________________________________

Other required information _____________________________________________________

I certify for Depositor that the above described Escrow Agent has inspected and
accepted the above Deposit Materials have been transmitted to Escrow Agent:
materials (any exceptions are noted above):

Signature ___________________________     Signature ___________________________

Print Name __________________________     Print Name __________________________

Date ________________________________     Date Accepted _______________________

                                          Exhibit B2# _________________________
Send materials to: Escrow Agent

                                     VI-17
<PAGE>

                                                                      EXHIBIT B3

                               DESIGNATED CONTACT

                                 Account Number

<TABLE>
<S>                                    <C>
Notices, deposit material returns and
communications to Depositor            Invoices to Depositor should be
should be addressed to:                addressed to:
</TABLE>

<TABLE>
<S>                               <C>
Company Name: __________________  ___________________________________________
Address: _______________________  ___________________________________________
      __________________________  ___________________________________________
      __________________________  ___________________________________________
Contact: _______________________  Contact: __________________________________
Telephone: _____________________  Telephone: ________________________________
Facsimile: _____________________  P.O.#, if required: _______________________

Pursuant to Section 1.6
Verification Contact: __________  Telephone: ________________________________

Notices and communications to     Invoices to Preferred Beneficiary
Preferred Beneficiary should be
 addressed to:                    should be addressed to:

Company Name: __________________  ___________________________________________
Address: _______________________  ___________________________________________
      __________________________  ___________________________________________
      __________________________  ___________________________________________
Contact: _______________________  Contact: __________________________________
Telephone: _____________________  Telephone: ________________________________
Facsimile: _____________________  P.O.#, if required: _______________________

Requests from Depositor or Preferred Beneficiary to change the designated
contact should be given in writing by the designated contact or an authorized
employee of Depositor or Preferred Beneficiary.

Contracts, Deposit Materials and
 notices to                       Invoice inquiries and fee remittances
Escrow Agent should be addressed
 to:                              to Escrow Agent should be addressed to:

Escrow Agent                      Escrow Agent
</TABLE>

                                     VI-18

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