Document:

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                                                                   EXHIBIT 10.16

                      LICENCE AND CO-MARKETING AGREEMENT

THIS AGREEMENT ("Agreement") is entered into as of the 26/th/ day of May, 2000
("Effective Date") by and between Docent Netherlands B.V. whose principal place
of business is at Planetenbaan 100, 3606 AK Maarssenbroek, The Netherlands
("Docent") and FT Knowledge Limited, a company registered in England and Wales
under number 2970324, with its registered office at Number One Southwark Bridge,
London SE1 9HL ("FTK") (Docent and FTK may be referred to individually as a
"Party," or collectively as the "Parties").

WHEREAS:

A     Docent has developed software programs and technology enabling a World
      Wide Web distributed learning system for use by organisations to
      facilitate course management, information exchange, personal information
      management, campus portal, assessment, management and electronic commerce.
      FTK is one of the world's leading providers of business education and
      management development and specialises in providing courses and learning
      resources that are highly relevant to the needs of the business and those
      people who work within it.

B     FTK desires to licence certain of Docent's software programs and
      technology and purchase certain services related thereto to make FTK's
      courses and learning resources available through the World Wide Web to its
      corporate customers, and to their customers.

C     Each Party also desires to co-operate in marketing the other Party's
      products and services and referring potential customers to the other
      Party.

NOW, THEREFORE, in consideration of the promises and mutual covenants herein,
the Parties agree as follows:

1.    DEFINITIONS.

      "Affiliate"                        shall mean:
                                         (1) with respect to FTK, any other
                                         entity from time to time within the
                                         operational control of FTK, and (a)
                                         which is within the Pearson Group,
                                         whether directly or indirectly, through
                                         one or more intermediaries, including
                                         but not limited to FT Knowledge Inc.,
                                         FT Knowledge LLC, New York Institute of
                                         Finance Inc., and NYIF (Holdings) LDC;
                                         or (b) in respect of which FTK, FT
                                         Knowledge Inc., FT Knowledge LLC, New
                                         York Institute of Finance Inc. or NYIF
                                         (Holdings) LDC owns more than 50% of
                                         the equity or other ownership interest
                                         of the entity; or (c) the principal
                                         business activity of which is the
                                         providing of courses and learning
                                         resources relating to business
                                         education and management development;
                                         and
                                         (2) with respect to Docent, any
                                         company within the direct or indirect
                                         ownership of the ultimate parent
                                         company of Docent.

                                         For the avoidance of doubt, all rights
                                         and benefits accruing to an Affiliate
                                         under this Agreement shall cease
                                         immediately upon such Affiliate ceasing
                                         to be an Affiliate.

      "Confidential Information"         shall mean any non-public information
                                         about a Party, including, without
                                         limitation, the Party's business,
                                         vendors, customers, products, services,
                                         employees, finances, costs, expenses,
                                         financial or competitive condition,
                                         policies and practices.

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      "Corrections"                      shall mean changes (e.g., fixes,
                                         workarounds and other modifications)
                                         made by or for Docent that correct
                                         Software Errors in the Software,
                                         provided in temporary form such as a
                                         patch, and later issued in the
                                         permanent form of an Update.

      "Docent Marks"                     shall mean the trademarks, service
                                         marks, or logos of Docent as Docent may
                                         designate from time to time.

      "Docent Services"                  shall mean such services as may be
                                         offered by Docent to its customers from
                                         time to time.

      "Documentation"                    shall mean the standard documentation
                                         provided by Docent to its customers and
                                         their users in connection with their
                                         use of the Software, including, but not
                                         limited to, program procedures and
                                         descriptions (but excluding
                                         descriptions of source code and build
                                         procedures for executable code),
                                         procedures for permitted maintenance
                                         and modification, testing data and
                                         similar written material relating to
                                         the design, structure and
                                         implementation of the Software, as well
                                         as help files and user documentation to
                                         allow individual users to use the
                                         Software.

      "Error Report"                     shall mean the document created by
                                         Docent in performing the Support and
                                         Maintenance Services when FTK reports a
                                         Software Error.

      "FTK Corporate Customer"           means any customer of FTK or its
                                         Affiliates which is a corporation or
                                         other legal entity (not being a natural
                                         person) and which is granted a licence
                                         by Docent to host a copy of the
                                         Software within that customer's
                                         firewalls for use only with courses and
                                         products supplied by FTK or its
                                         Affiliates;

      "FTK Enhancement"                  shall mean any customisation of the
                                         Software produced at FTK's request by
                                         Docent and which is neither an Update
                                         nor an Upgrade.

      "FTK Marks"                        shall mean the trademarks, service
                                         marks, or logos of FTK or its
                                         Affiliates as FTK may designate from
                                         time to time.

      "FTK Named User"                   means a Named User who is registered on
                                         a copy of the Software which is hosted
                                         by or on behalf of FTK or its
                                         Affiliates. This shall not include
                                         Named Users who are registered on a
                                         copy of the Software which is hosted
                                         other than by or on behalf of FTK or
                                         its Affiliates.

      "FTK Product"                      shall mean those products or courses
                                         supplied by FTK or its Affiliates as
                                         are set out in Schedule 1 from time to
                                         time, which Schedule 1 may be amended
                                         by FTK upon written notice to Docent
                                         should FTK wish to remove some or all
                                         titles from, or add additional titles
                                         to, the scope of this Agreement.

      "General Corporate Customer"       means any corporation or other legal
                                         entity (not being a natural person)
                                         which is granted a licence by Docent to
                                         host a copy of the Software within that
                                         customer's firewalls for use

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                                         with any courses and products (i.e. a
                                         General Corporate Customer shall not be
                                         restricted to using its copy of the
                                         Software only with courses and products
                                         supplied by FTK or its Affiliates).

      "Intellectual Property Rights"     shall mean all intellectual property
                                         rights worldwide arising under
                                         statutory or common law, whether or not
                                         perfected, including, without
                                         limitation, all (i) patents and patent
                                         applications owned or licensed by
                                         either Party; (ii) rights associated
                                         with works of authorship (including,
                                         without limitation, copyrights,
                                         computer programs, underlying code,
                                         user interfaces, databases and
                                         documentation therefor); (iii)
                                         trademarks, service marks, logos, brand
                                         names and trade dress; and (iv) any
                                         other proprietary rights relating to
                                         intangible property.

      "Licence"                          shall mean the licence granted by
                                         Docent to FTK under Clause 2 of this
                                         Agreement.

      "Marketing Materials"              shall mean any advertising, press
                                         releases, publicity, marketing
                                         collateral or similar materials.

      "Named User"                       means a named individual user (being a
                                         natural person) who is registered on
                                         the Software. For the avoidance of
                                         doubt, a registered user who ceases to
                                         be enrolled on any course on the
                                         Software but at a later date enrols on
                                         a new course on the Software, shall be
                                         deemed to be a single Named User (i.e.
                                         when an existing Named User enrols on a
                                         new course s/he shall not be deemed to
                                         be a new Named User). Further, an
                                         individual who is registered on the
                                         Software for more than one course shall
                                         be deemed to be a single Named User.

      "Net Revenues"                     shall mean the sales prices at the than
                                         current ##### (i) in respect of sales
                                         of #### resulting from an order which
                                         was ####; or (ii) in respect of sales
                                         or renewals of the Software made by
                                         ####; in both cases less the amounts
                                         for: (a) credit for ####; (b)
                                         reimbursement for ####; (c) costs for
                                         ####, #### and #### in ##### the ####;
                                         (d) #### and other #### or agreed ####
                                         allowed and taken; (e) ####, ####,
                                         ####; and other similar ####; and (f)
                                         ####, and other ####. Such amounts
                                         shall be exclusive of ####.

      "Pearson Group"                    shall mean any company within the
                                         ultimate ownership or control of
                                         Pearson plc.

      "Referral Fee"                     shall mean the percentage of Net
                                         Revenues payable to #### made to a
                                         customer from time to time as a result
                                         of #####. The relevant percentage,
                                         depending on the ##### concerned, is as
                                         set out in #####; and (b) ##### of Net
                                         Revenues received by ##### or ##### in
                                         respect

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                                         of ######

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      "Rental Fee"                       shall mean the sum of ####, payable
                                         by FTK on each of #####, ##### and
                                         ####, in accordance with Schedule 4
                                         Part A, section 1.

      "Severity Level"                   means the level of severity of a
                                         Software Error, in accordance with the
                                         Severity Level definitions below:

                                         a.  Severity Level 1. Severity Level 1
                                         implies that the Software is completely
                                         not functioning, for example because
                                         the Software has crashed or frozen and
                                         will not restart.

                                         b.  Severity Level 2. Severity Level 2
                                         implies that the Software is failing to
                                         function correctly and is generating a
                                         data corruption condition, possibly
                                         including loss of data or suspect data
                                         integrity.

                                         c.  Severity Level 3. Severity Level 3
                                         implies that the Software is running
                                         but that FTK is unable to use major
                                         portions of the Software capability and
                                         there is no "work - around".

                                         d.  Severity Level 4. Severity Level 4
                                         implies that the Software is operating
                                         close to normal but there is a non-
                                         critical Software Error or a failure in
                                         a major portion of the Software
                                         capability, but a "work -around" is
                                         available.

                                         e.  Severity Level 5. Severity Level 5
                                         implies that there is a cosmetic
                                         problem with the Software.

      "Software"                         shall mean Docent Enterprise version
                                         4.5.

      "Software Error"                   means a reproducible defect or
                                         combination of reproducible defects in
                                         the Software (or any Corrections,
                                         Upgrades, Updates or FTK Enhancements)
                                         that results in a failure of the
                                         Software (or any Corrections, Upgrades,
                                         Updates or FTK Enhancements), when used
                                         in accordance with the Documentation,
                                         to function substantially in accordance
                                         with the Specifications. A reproducible
                                         defect shall mean a defect that Docent
                                         can reproduce using that version of the
                                         Software as delivered by Docent to FTK
                                         hereunder. Software Errors do not
                                         include those errors caused by (i) the
                                         negligence of FTK, (ii) any
                                         modification or alteration of the
                                         Software made by FTK, (iii) operator
                                         error, (iv) use on any system other
                                         than the operating system specified in
                                         the Documentation, (v) accident or
                                         misuse or (vi) failure to load any
                                         Correction, Upgrade or Update as
                                         instructed by Docent.

      "Specifications"                   shall mean the technical specifications
                                         for the Software as set out in the
                                         Documentation.

      "Support and Maintenance Fee"      shall mean #####

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      "Support and Maintenance           shall mean the support and maintenance
      Services"                          services described in Schedule 2.

      "Taxes"                            shall mean any federal, state, local,
                                         or foreign income, gross receipts,
                                         license, payroll, employment, excise,
                                         severance, stamp, occupation, premium,
                                         windfall profits, environmental,
                                         customs duties, capital stock,
                                         franchise, profits, withholding, social
                                         security (or similar), unemployment,
                                         disability, real property, personal
                                         property, sales, use, transfer,
                                         registration, value added, estimated,
                                         or other tax of any kind whatsoever
                                         (including any interest, penalty, or
                                         addition thereto).

      "Updates"                          shall mean any bug fixes, patches, or
                                         other revisions or changes to or
                                         modifications of the Software that are
                                         made generally available to Docent's
                                         customers at no additional charge as a
                                         part of Support and Maintenance
                                         Services, which would typically be
                                         designated by a change in the version
                                         number to the right of the first
                                         decimal point, and does not include
                                         Upgrades.

      "Upgrade"                          means any new releases of, or revisions
                                         or modifications to, the Software which
                                         would typically be designed by a change
                                         in the version number to the left of
                                         the first decimal point, such as those
                                         that provide additional features,
                                         require additional hardware or perform
                                         additional functions not provided or
                                         performed by the Software previously
                                         licensed to FTK; provided that such
                                         Upgrades are made generally available
                                         to Docent's customers at no additional
                                         charge as a part of Support and
                                         Maintenance Services.

      Other terms used in this Agreement are defined in the context in which
      they are used and have the meanings there stated.

2.    LICENCE

2.1   Deliverables. Within fourteen (14) days from the Effective Date, Docent
      ------------
      will deliver to FTK one copy of the Software (plus applicable
      Documentation) to be installed subsequently on to any number of servers of
      FTK's choice.

2.2   Licence Grant. Subject to the provisions of this Agreement, Docent hereby
      -------------
      grants to FTK a ##### licence from the date hereof until 31 December 2003
      for FTK and its Affiliates to:

      (a)  use,
      (b)  enhance and/or modify through the use of any documented or
           undocumented Application Programming Interface (such as, by way of
           example only, Docent "App files"),
      (c)  perform,
      (d)  transmit,
      (e)  display,
      (f)  provide access to FTK Named Users to; and
      (g)  make an unlimited number of copies, as necessary to support FTK Named
           Users, of the Software and any FTK Enhancements, Corrections, Updates
           and/or Upgrades, all for the purpose of providing on-line training to
           third parties.

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2.3   Docent hereby agrees, at FTK's option, to convert the licence granted
      under clause 2.2 into an indefinite licence with effect from 1 January
      2004. FTK shall be entitled to exercise this option at any time by notice
      in writing to Docent. FTK shall pay Docent the sum of ##### in
      consideration for the conversion of the licence granted under clause 2.2
      into an indefinite licence, such sum to be payable within 30 days after
      the date of receipt of Docent's invoice therefor.

      Notwithstanding the foregoing, any failure by Docent to request or invoice
      FTK for the aforementioned ##### shall not delay, affect or invalidate the
      conversion of the licence granted under clause 2.2 into an indefinite
      licence, provided such notice in writing shall have been delivered to
      Docent.

2.4   The licence granted to FTK and its Affiliates pursuant to clause 2.2 shall
      only apply to copies of the Software which are hosted by or on behalf of
      FTK or its Affiliates. This licence shall not apply to any copy of the
      Software which is hosted other than by or on behalf of FTK or its
      Affiliates. Any FTK Corporate Customer or General Corporate Customer who
      wishes to host the Software within its own firewalls shall be obliged to
      enter a separate licence agreement with Docent in accordance with clause
      3.2.

      Should any customer who does not wish to host the Software within its own
      firewalls request that FTK or its Affiliates host on the Software any
      courses which are supplied by or on behalf of the customer, then FTK shall
      pay to Docent a hosting fee in accordance with Schedule 4, Part A, section
      5.

2.5   Copies.  The licence granted to FTK hereunder shall apply to all copies of
      ------
      the Software created by FTK hereunder, provided that FTK reproduces on any
      copies of the Software, FTK Enhancements, Corrections, Updates and/or
      Upgrades all copyright notices and any other confidential or proprietary
      legends that are on or encoded in the Software.

2.6   Restrictions.  Except in order to allow FTK's Affiliates to exercise the
      ------------
      licence under section 2.2, or as otherwise expressly set forth in this
      Agreement, FTK may not modify, decompile, disassemble, decrypt, extract,
      or otherwise reverse engineer the Software or any part thereof.

2.7   Source Code Escrow.  From one month after the Effective Date, Docent will
      ------------------
      maintain for the period of this Agreement a copy of the source code of the
      latest version from time to time of the Software (including all FTK
      Enhancements, Upgrades and Updates) with National Computer Centre ("NCC").
      FTK shall be entitled to access, use, copy and modify the source code
      pursuant only to the terms and conditions of a separate source code escrow
      agreement among Docent, FTK and NCC, and only if:

      (a)  a Security Level 1 Software Error occurs and remains unresolved for a
           period of 6 weeks, in which event (i) access to the source code shall
           be limited to 3 individuals, each of which shall sign a
           confidentiality agreement; and (ii) the source code shall be released
           to FTK only for the period during which FTK uses it to try to resolve
           such Software Error and shall be destroyed at the end of such period;
           or

      (b)  Docent ceases, or threatens to cease, to operate as a business; or

      (c)  Docent terminates the Support and Maintenance Services in accordance
           with clause 8.2.1; or

      (d)  this Agreement is terminated by FTK for Docent's material breach in
           accordance with clause 8.2.3.

      FTK shall be responsible for all costs associated with the establishment
      and maintenance of a source code account with NCC.

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2.8   FTK Enhancements.   Should FTK request an FTK Enhancement, FTK shall
      ----------------
      provide Docent with full written details of the proposed FTK Enhancement.
      Within two weeks of receipt of such details, Docent will notify FTK of the
      charges and timescale associated with the proposed FTK Enhancement.

      Docent shall not commence work on a proposed FTK Enhancement unless and
      until it receives written confirmation of acceptance of the proposed
      charges and timescale from FTK.

      On receipt of a request for an FTK Enhancement, Docent will notify FTK if
      it reasonably considers the proposed FTK Enhancement would compete with
      the Software. If Docent does so notify FTK, the parties agree that they
      shall negotiate in good faith to determine a mutually acceptable release
      date for an Update or Upgrade (as the case may be) to include such
      proposed FTK Enhancement. If within 10 working days of the date of FTK's
      request the parties are not able to reach agreement on an acceptable
      release date, Docent shall be obliged to produce the FTK Enhancement.

      Should Docent produce an FTK Enhancement pursuant to this clause 2.8, it
      undertakes not for a period of 4 months after the FTK Enhancement has been
      accepted by FTK to include such FTK Enhancement in an Upgrade or Update,
      or to release such FTK Enhancement to, or make it available to, third
      parties, PROVIDED THAT this 4 month period shall not apply if Docent can
      demonstrate to FTK before it produces the FTK Enhancement that the
      proposed FTK Enhancement was already incorporated in Docent's development
      plans for the next Upgrade or Update and that such Upgrade or Update was
      due to be released no later than 6 months after the date of FTK's request.

3     MARKETING AND SALES OF SOFTWARE AND DOCENT SERVICES BY FTK.

3.1   Marketing.  Subject to the terms and conditions of this Agreement, FTK and
      ---------
      FTK's Affiliates may market and refer the Software, (including any
      Corrections, Upgrades, Updates or FTK Enhancements), and/or Docent
      Services to their potential or existing customers from time to time in
      order to procure orders for the Software (including any Corrections,
      Upgrades, Updates or FTK Enhancements), and/or Docent Services. Any such
      marketing efforts will be consistent with good business ethics. FTK will
      refrain from engaging in any illegal, unfair or deceptive trade practices,
      unethical business practices whatsoever, or making any representations
      inconsistent with specifications provided by Docent with respect to the
      marketing of the Software and/or Docent Services.

3.2   Terms of Sale.  #####.  FTK shall not market or quote for the Software
      -------------
      without making clear to FTK's customers that they must also pay for Docent
      maintenance and support for the period during which they license the
      Docent Software, such maintenance and support to be at #####. FTK and
      FTK's Affiliates shall supply their customers with a copy of Docent's
      standard terms and conditions and shall arrange for these to be executed
      by the customer and forwarded to Docent for execution by Docent. #####.
      Docent may change at any time and without liability, (i) Software or
      Docent Services, (ii) prices, (iii) availability and delivery schedules,
      and (iv) terms and conditions. Docent will endeavour to notify FTK within
      sixty (60) days prior to any such changes.

      3.3  Acceptance.  All orders for Software (including any Corrections,
           ----------
      Upgrades, Updates or FTK Enhancements) or Docent Services procured by FTK
      or its Affiliates are subject to Docent's final acceptance, which
      acceptance shall not be unreasonably withheld or delayed. Docent will use
      its reasonable efforts to promptly approve or reject orders procured by
      FTK or its Affiliates.

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      If Docent should reject an order procured by FTK or its Affiliates it
      shall at the time of the rejection give FTK written reasons for such
      rejection.

3.4   Invoices and Payment.  FTK shall be responsible for invoicing and
      --------------------
      collecting monies from FTK's customers in respect of purchases of Software
      and Docent Services procured by FTK or its Affiliates. #####. Failure by
      FTK to invoice or collect monies due from customers shall not negate FTK's
      obligation to remit any monies due to Docent from FTK or its Affiliates.

3.5   Marks.  Docent grants FTK and its Affiliates a #####  licence to use the
      -----
      Docent Marks solely in connection with performing its rights and
      obligations under this Agreement. FTK acknowledges that its utilisation of
      the Docent Marks will not create in it, nor will it represent it has any
      right, title or interest in or to such Docent Marks other than the
      licences expressly granted herein. FTK will comply with Docent's standard
      trademark usage guidelines as Docent may provide from time to time. FTK
      and its Affiliates shall be free to inform third parties that they are
      using the Docent Software in respect of FTK and its Affiliates' on-line
      courses, but may not otherwise use Docent's name or identify Docent in any
      capacity, without Docent's prior written permission, not to be
      unreasonably withheld or delayed. FTK will not to do anything contesting
      or impairing the trademark rights of Docent.

3.6   Marketing Materials.  FTK will submit to Docent for Docent's prior written
      -------------------
      approval any Marketing Materials to be used in connection with performing
      its obligations or rights under this Agreement solely so that Docent may
      monitor use of the Docent Marks. Docent will respond to any such request
      for approval within 10 working days. Docent reserves the right to
      disapprove such Marketing Materials if it determines that the Docent Marks
      are improperly used, in which event FTK shall not use such Marketing
      Materials.

3.7   Reserved Rights.  Subject to section 2.8, Docent shall at all times have
      ---------------
      the right to market, sell, lease, license, provide, ship or otherwise
      distribute or perform the Software and/or Docent Services to third
      parties. FTK shall not be entitled to receive any compensation for sales
      of Software and/or Docent Services consummated by Docent unless and except
      to the extent provided herein.

4.    MARKETING AND SALES OF FTK PRODUCT BY DOCENT

4.1   Marketing.  Subject to the terms and conditions of this Agreement, Docent
      ---------
      may market and refer the FTK Product to its potential or existing
      customers from time to time in order to procure orders for such FTK
      Product. Any such marketing effort will be consistent with good business
      ethics. Docent will refrain from engaging in any illegal, unfair or
      deceptive trade practices, unethical business practices whatsoever, or
      making any representations inconsistent with specifications provided by
      FTK with respect to the marketing of the FTK Product.

4.2   Prices and Terms of Sale. Docent shall not market or quote for FTK Product
      ------------------------
      except in accordance with ##### and standard terms and conditions. FTK
      may change at any time and without liability, (i) product or service
      offerings within the FTK Product, (ii) prices, (iii) availability and
      delivery schedules, and (iv) terms and conditions. FTK will endeavour to
      notify Docent within sixty (60) days prior to any such change.

      Docent will forward to FTK any enquiries or orders for FTK Product which
      it may receive.

4.3   Acceptance.  All sales of FTK Product procured by Docent are subject to
      ----------
      FTK's final acceptance, which acceptance shall not be unreasonably
      withheld or delayed. FTK will use all reasonable efforts promptly to
      approve or reject orders procured by Docent. If FTK should reject an order
      procured by Docent it shall at the time of the rejection give Docent
      written reasons for such rejection.

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4.4  Invoices and Payment.  FTK shall fulfil all orders procured by Docent which
     --------------------
     it accepts, and shall invoice such customers and their payments shall be
     made directly to FTK. FTK shall remit the Referral Fee to Docent in
     accordance with Schedule 4, Part A, Section 4.

4.5  Marks.  FTK grants Docent a ##### licence to use the FTK Marks solely in
     -----
     connection with performing its rights and obligations under this Agreement.
     Docent acknowledges that its utilisation of the FTK Marks will not create
     in it, nor will it represent it has any right, title or interest in or to
     such FTK Marks other than the licenses expressly granted herein. Docent
     will not to do anything contesting or impairing the trademark rights of FTK
     and will comply with FTK's standard trademark usage guidelines as FTK may
     provide from time to time.

     Docent may not use FTK's or FTK's Affiliates names or identify FTK or FTK's
     Affiliates in any capacity, without FTK's prior written permission, not to
     be unreasonably withheld or delayed.

4.6  Marketing Materials.  Docent will submit to FTK for FTK's prior written
     -------------------
     approval any Marketing Materials to be used in connection with performing
     its obligations or rights under this Agreement solely so that FTK may
     monitor use of the FTK Marks. FTK will respond to any such request for
     approval within 10 working days. FTK reserves the right to disapprove such
     Marketing Materials if it determines that the FTK Marks are improperly
     used, in which event Docent shall not use such Marketing Materials.

4.7  FTK Named Users.  Nothing in this Agreement shall entitle Docent to use, or
     ---------------
     permit a third party to access or use, the personal contact details of any
     FTK Named User unless as required by law or the FTK Named User (in which
     such case, subject to FTK's approval).

4.8  Reserved Rights.  Notwithstanding any other provision in this Agreement,
     ---------------
     FTK shall at all times have the right to market, sell, lease, license,
     provide, ship or otherwise distribute the FTK Product to third parties.
     Docent shall not be entitled to receive any compensation for sales of FTK
     Product consummated by FTK unless and except to the extent provided herein.

5.   SUPPORT AND MAINTENANCE

5.1  Support and Maintenance Services.  Docent will perform the Support and
     --------------------------------
     Maintenance Services. FTK shall be responsible for procuring, installing
     and maintaining all equipment, telephone lines, communications interfaces,
     and other hardware necessary to operate the Software, unless Docent agrees
     in writing to undertake any of these responsibilities under a separate
     hosting agreement.

5.2  Additional Services.  Any time services are carried out by Docent in
     -------------------
     diagnosing or fixing problems that are not caused by the Software or are
     not covered by this Agreement such services shall be billable to FTK at
     Docent's then-existing rates.

5.3  Implementation Services.  On request from FTK or its Affiliates, Docent
     -----------------------
     shall provide the necessary services to FTK Corporate Customers to enable
     such customers to install the Software. Such services shall be provided in
     accordance with Docent's standard terms and prices from time to time for
     professional services.

     Docent shall be entitled to use sub-contractors to provide such
     professional services, provided the standard of such professional services
     shall be no lower than if they had been performed by Docent, and further
     provided that Docent shall be responsible for the acts and omissions of
     such sub-contractors.

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6.   PAYMENTS.

6.1  To Docent.  FTK shall make payments to Docent in accordance with #####. If
     ---------
     FTK does not pay Docent any sum when due then Docent may charge FTK daily
     interest on overdue sums at an annualised rate equivalent to ##### above
     the base rate of Barclays Bank plc from time to time from the date when
     payment was due until the date of actual payment of all sums due (including
     interest).

6.2  Taxes.  FTK agrees to pay any sales, use, excise, import or export, value-
     -----
     added or similar tax and interest, as well as any costs associated with the
     collection or withholding thereof, and all government permit fees, license
     fees and customs and similar fees levied on the delivery of the Software to
     FTK by Docent. All payments due under this Agreement shall be made without
     any deduction or withholding, unless such deduction or withholding is
     required by any applicable law of any relevant governmental revenue
     authority then in effect.

6.3  Right of Audit.  By prior arrangement and during FTK's normal business
     --------------
     hours, Docent shall have the right for the sole purpose of ensuring
     compliance with this Agreement, to conduct a reasonable and necessary
     inspection of portions of the books and records of FTK which are solely
     relevant to the amounts payable by FTK hereunder, and/or to the number of
     FTK Named Users who have access to the Software through FTK at any time.
     Such inspections shall be made no more frequently than once in any 12 month
     period, and all information obtained by Docent as a result of such
     inspection shall be deemed to be Confidential Information of FTK.  Any
     audit undertaken shall be conducted at Docent's sole expense, unless the
     payments made by FTK to Docent are determined to have been less than #####
     of the payments actually owed to Docent, in which case FTK will be
     responsible for the payment of the reasonable fees for such inspection. In
     addition, FTK shall immediately remit payment to Docent for the full amount
     of any disclosed shortfalls.  The audit rights set forth herein shall
     continue for one (1) year following the termination or expiry of this
     Agreement for any reason, or for such period as FTK continue to make
     payments to Docent, whichever is longer

7.   [Intentionally omitted]

8.   TERM; TERMINATION.

8.1  Term.  This Agreement shall commence as of the Effective Date and, unless
     ----
     FTK exercises its option under clause 2.3 to convert the Licence granted by
     Docent into an indefinite licence, then this Agreement shall expire on 1
     January 2004.

     Should FTK exercise its option under clause 2.3 to convert the Licence
     granted by Docent into an indefinite licence, then this Agreement shall
     continue until terminated by either party in accordance with the terms
     hereof.

8.2  Termination.
     -----------

     8.2.1  By Docent without cause.  Docent may terminate the Support and
            -----------------------
            Maintenance Services upon no less than 6 months' written notice to
            FTK, such notice period to expire on or at any time after the 10/th/
            anniversary of the Effective Date.

     8.2.2  By FTK without cause.  FTK may terminate this Agreement upon no less
            --------------------
            than 6 months' written notice to Docent, such notice period to
            expire on or at any time after 31 December 2003.

     8.2.3  Material Breach.  Either Party may terminate this Agreement upon
            ---------------
            written notice to the other upon the occurrence of any material
            breach of the other Party's material representations, warranties,
            covenants or other agreements contained herein, which

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            breach remains uncured for a period of thirty (30) days after
            receipt of a written notice from the non-breaching Party with
            respect to such breach. Late payment will not constitute a material
            breach of this Agreement.

8.3  Survival. Any provision of this Agreement which contemplates performance or
     --------
     observance subsequent to any termination or non-renewal of this Agreement
     (in whole or in part) shall survive any termination of this Agreement (in
     whole or in part, as applicable) and continue in full force and effect.

8.4  Effect of Termination or expiry.
     -------------------------------

     Upon termination or expiry of this Agreement:

     8.4.1  each Party shall return or destroy any Confidential Information of
            the other Party it has in its possession and certify in writing
            within ten (10) working days of termination that all Confidential
            Information in its possession or control has been so returned or
            destroyed;

     8.4.2  any amounts owed to Docent under this Agreement before such
            termination will be immediately due and payable;

     8.4.3  unless the Support and Maintenance Services have been terminated by
            Docent under clause 8.2.1 or this Agreement has been terminated by
            FTK under clause 8.2.3, the Licence granted hereunder will
            immediately cease and FTK must promptly discontinue all use of the
            Software, destroy all copies of the Software in its possession and
            certify in writing within ten (10) working days after the
            termination of the Licence to Docent that it has complied with the
            above. In the event of termination of the Support and Maintenance
            Services by Docent under clause 8.2.1 or termination of this
            Agreement by FTK under clause 8.2.3, the Licence granted hereunder
            shall not be affected and shall continue in full force and effect.

            For so long as the Licence continues, all FTK's related payment
            obligations hereunder shall continue, save in respect of Support and
            Maintenance Services.

     This clause 8.4 shall survive termination of this Agreement.

9.   OWNERSHIP.

9.1  Docent.  As between Docent and FTK, Docent has and shall have sole and
     ------
     exclusive ownership of all right, title and interest in and to the
     Software, Corrections, Updates, Upgrades, FTK Enhancements and
     Documentation, including without limitation, all Intellectual Property
     Rights associated therewith. Nothing in this Agreement shall be construed
     to grant FTK or Affiliates any ownership right in, or license to, the
     Software, Corrections, Updates, Upgrades, FTK Enhancements or Documentation
     except as expressly provided in this Agreement.

9.2  FTK.  As between Docent and FTK, FTK has and shall have the sole and
     ---
     exclusive ownership of all right, title and interest in and to the FTK
     Product including, without limitation, all Intellectual Property Rights
     associated therewith. Nothing in this Agreement shall be construed to grant
     Docent any ownership right in, or license to the FTK Product except as
     expressly provided in this Agreement.

10.  CONFIDENTIALITY.

10.1  Nondisclosure and Non-use.  Each Party receiving Confidential Information
      -------------------------
      shall (a) disclose such Confidential information to only those directors,
      officers, employees and agents of such

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      Party (or, in the case of FTK, the employees, directors and/or officers of
      the Pearson Group) (i) whose duties justify their need to know such
      information and (ii) who have been informed of their obligation to
      maintain the confidential, proprietary and/or trade secret status of such
      Confidential Information; and (b) use such Confidential Information only
      for the purposes set forth in this Agreement. Each Party receiving
      Confidential Information shall treat such information as strictly
      confidential, and shall use the same care to prevent disclosure of such
      information as such Party uses with respect to its own confidential and
      proprietary information, which shall not be less than the care a
      reasonable person would use under similar circumstances. Notwithstanding
      the foregoing, each Party may disclose Confidential Information to the
      extent necessary pursuant to applicable national or local law, regulation,
      court order, or other legal process, provided the receiving Party has
      given the disclosing Party prior written notice of such required
      disclosure and, to the extent reasonably possible, has given the
      disclosing Party an opportunity to contest such required disclosure at the
      disclosing Party's expense.

      Each Party acknowledges that the other already has extensive knowledge of
      and expertise in the business of developing, designing, marketing and
      distributing training and education products and services and therefore
      nothing in this Agreement shall serve to impair either Party's right to
      make, procure and market products or services now or in the future which
      may be similar to those developed or in the process of being developed by
      the other Party.

10.2  Exclusions from Confidential Information.  Confidential Information shall
      ----------------------------------------
      not include that which:

      (a)  is or has been independently developed by the receiving Party or, in
           the case of FTK, any of its Affiliates;

      (b)  is or has been rightfully received by the receiving Party or, in the
           case of FTK, any of its Affiliates, without an obligation of
           confidentiality;

      (c)  is or becomes publicly available without breach of this Agreement;

      (d)  is trivial or obvious;

      (e)  is approved for release by the disclosing Party.

10.3  Confidential Treatment of Agreement.  Neither Party shall disclose the
      -----------------------------------
      terms of this Agreement to any third party; provided, however, that either
      Party may disclose the terms of this Agreement (i) to its legal advisers
      and accountants, or to any potential investor or acquiror of a substantial
      part of such Party's business (whether by merger, sale of assets, sale of
      stock or otherwise) that is bound by a written agreement to keep such
      terms confidential, (ii) to, in the case of FTK, any company within the
      Pearson Group, or (iii) as may be required by law.

11.  WARRANTY; DISCLAIMER; LIMITATION OF LIABILITY.

11.1  Docent hereby warrants and represents that:

      a.   it has used all reasonable endeavours to ensure (including without
           limitation by the use of generally available and accepted anti-virus
           software and procedures) that the Software, Corrections, Updates,
           Upgrades and FTK Enhancements are free from harmful code of any
           description (whether called locks, viruses, worms or otherwise)
           including any computer code, programming instructions or sets of
           instructions that are intentionally constructed to damage, interfere
           with or otherwise adversely affect computer programs and/or datafiles
           and/or hardware and/or computer systems and/or networks; and

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<PAGE>

      b.   it has the right and power to make this Agreement and that the
           Software, Corrections, Updates, Upgrades, FTK Enhancements and
           Documentation will not violate any existing Intellectual Property
           Right nor breach any existing agreement; and

      c.   for a period of ninety (90) days from delivery of the Software (the
           "Warranty Period"), the Software will perform substantially in
           accordance with its associated Documentation. If FTK reports a
           reproducible failure of the Software to perform substantially in
           accordance with its associated Documentation during the Warranty
           Period, FTK's sole and exclusive remedy for breach of this warranty
           shall be that Docent will either provide FTK with a workaround or
           make the Software conform to such Documentation, or in Docent's sole
           discretion, will refund the Licence Fee which FTK paid for the non-
           conforming Software upon FTK's certification that it has destroyed
           all copies, and ceased all use, of the non-conforming Software. Any
           replacement Software will be warranted for the remainder of the
           original 90-day warranty period or for thirty (30) days from the date
           FTK receives the replacement, whichever is longer. This warranty is
           void if failure of the Software is due to modification, abuse,
           misapplication or accident. This clause 11.1c shall not in any way
           restrict or limit Docent's liability for failure to perform the
           Support and Maintenance Services in accordance with this Agreement.

      d.   Docent warrants that the Docent Services will be performed in a
           professional, workmanlike and skilful manner. If FTK reports a breach
           of this warranty within ninety (90) days after performance of the
           defective services, FTK's sole and exclusive remedy shall be to
           require Docent to re-perform the defective Docent Services.

      e.   Docent does not warrant third party products provided hereunder. Any
           third party warranties shall, to the extent permissible by the
           applicable mandatory law, be passed through to FTK.

      f.   Docent disclaims, on behalf of itself and its suppliers, all express,
           implied or statutory warranties, conditions, terms and
           representations related to the Software other than as expressly set
           forth in this Agreement, including, but not limited to, implied
           warranties of merchantability, satisfactory quality, fitness for a
           particular purpose to the maximum extent permitted by law.

11.2  FTK hereby warrants and represents that:

      a.   it has the right and power to make this Agreement and the FTK Product
           will not violate any existing Intellectual Property Right nor breach
           any existing agreement;

      b.   it has used all reasonable endeavours to ensure (including without
           limitation by the use of generally available and accepted anti-virus
           software and procedures) that the FTK Products are free from harmful
           code of any description (whether called locks, viruses, worms or
           otherwise) including any computer code, programming instructions or
           sets of instructions that are intentionally constructed to damage,
           interfere with or otherwise adversely affect computer programs and/or
           datafiles and/or hardware and/or computer systems and/or networks;
           and

      c.   FTK disclaims, on behalf of itself and its suppliers, all express,
           implied or statutory warranties, conditions, terms and
           representations related to the FTK Product other than as expressly
           set forth in this Agreement, including, but not limited to, implied
           warranties of merchantability, satisfactory quality, fitness for a
           particular purpose to the maximum extent permitted by law.

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12.  INDEMNIFICATION.

12.1  Indemnification by Docent.  Docent shall indemnify, defend and hold
      -------------------------
      harmless FTK and its Affiliates from and against any and all loss, damage,
      injury, liability or suit, including any reasonable legal fees and costs,
      incurred by FTK or its Affiliates as a result of or arising from any
      actual or threatened claim or action against FTK or any of FTK's
      Affiliates, to the extent such claim or action is based on an allegation
      that the Software, Corrections, Updates, Upgrades, FTK Enhancements or
      Documentation infringe any Intellectual Property Right, provided that they
      notify Docent promptly in writing of such actual or threatened claim or
      action, they give Docent sole control of the defence thereof, that they
      co-operate in the defence thereof at Docent's expense and that they do not
      admit liability or settle any such claims or actions or make any payment
      on account of the same without the prior written consent of Docent, except
      under an order from the Court. Docent's obligation to indemnify FTK and
      its Affiliates shall not extend to a claim based on any alleged
      infringement arising from (a) any material supplied to Docent by FTK or
      its Affiliates which is relied upon or incorporated in the Software; or
      (b) any incorporation of the Software or any component thereof into any
      other product or process, unless such incorporation was carried out by or
      on behalf of Docent; or (c) any use by FTK or its Affiliates of a non-
      infringing Update, Upgrade or otherwise superseding version of such
      Software PROVIDED THAT Docent's obligation to indemnify FTK and its
      Affiliates shall apply in respect of any reasonable legal fees and costs
      incurred in defending such a claim, and in respect of any monies that may
      be paid by Docent in order to settle such a claim, or (d) use of the
      Software other than as permitted by this Agreement. This provision shall
      be the sole and exclusive remedy of FTK and its Affiliates in respect of
      infringement and alleged infringement.

      Docent shall, at FTK's cost, consult FTK as to the selection of lawyers,
      will consult with FTK's lawyers and shall keep FTK informed at all times
      as to the progress of the claim or action.

      If the Software, Corrections, Updates, Upgrades, FTK Enhancements or
      Documentation or any component thereof becomes, or in Docent's sole
      opinion is likely to become, the subject of such an allegation of
      infringement, then FTK and its Affiliates shall permit Docent, at Docent's
      option and expense, either to (i) procure the right to continue using the
      component of the Software, Corrections, Updates, Upgrades, FTK
      Enhancements or Documentation alleged to be infringing, or (ii) replace or
      modify that component of the Software, Corrections, Updates, Upgrades, FTK
      Enhancements or Documentation so that it becomes non-infringing. FTK and
      its Affiliates shall not incur any costs or expenses for the account of
      Docent under or pursuant to this Section without Docent's prior written
      consent.

12.2  FTK Indemnity.  FTK shall indemnify, defend and hold harmless Docent and
      -------------
      its Affiliates from and against any and all loss, damage, injury,
      liability or suit, including any reasonable legal fees and costs, incurred
      by Docent or its Affiliates as a result of or arising from any actual or
      threatened claim or action against Docent or any of Docent's Affiliates to
      the extent such claim or action is based on an allegation that the FTK
      Product infringe any Intellectual Property Right, provided that they
      notify FTK promptly in writing of such actual or threatened claim or
      action, they give FTK sole control of the defence thereof, that they co-
      operate in the defence thereof at FTK's expense and that they do not admit
      liability or settle any such claims or actions or make any payment on
      account of the same without the prior written consent of FTK, except under
      an order from the Court. FTK's obligation to indemnify Docent and its
      Affiliates shall not extend to a claim based on any alleged infringement
      arising from (a) any material supplied to FTK by Docent for incorporation
      in the FTK Product; or (b) any incorporation of the FTK Product or any
      component thereof into any other product or process, unless such
      incorporation was carried out by or on behalf of FTK; or (c) any use by
      Docent or its Affiliates of a non-infringing FTK Product PROVIDED THAT
      FTK's obligation to indemnify Docent and its Affiliates shall apply in
      respect of any reasonable legal fees and costs incurred in defending such
      a claim, and in respect of any monies that may be paid by FTK in order to
      settle such a claim, or (d) use of the FTK Product other than as permitted
      by this Agreement. This provision

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<PAGE>

      shall be the sole and exclusive remedy of Docent and its Affiliates in
      respect of infringement and alleged infringement.

      FTK shall, at Docent's cost, consult Docent as to the selection of
      lawyers, will consult with Docent's lawyers and shall keep Docent informed
      at all times as to the progress of the claim or action.

12.3  In no event shall either party be liable for any damages for loss of
      profits, business interruption, or loss of information or for any
      consequential or indirect damages whatsoever.

      The aggregate cumulative liability of each party, whether in contract or
      tort or otherwise, will not ##### under this Agreement from time to time,
      provided that for ##### this sum shall be deemed to be #####. #####.

13.  GENERAL PROVISIONS.

13.1  Relationship of the Parties.  This Agreement does not contemplate, create
      ---------------------------
      or constitute a joint venture, partnership, agency or similar relationship
      between the Parties. Neither Party shall have the right, authority or
      power to represent, or act on behalf of, the other unless expressly
      authorised to do so in this Agreement. Both Parties shall at all times
      maintain their own separate organisations and legal integrity.

13.2  Governing Law.  This Agreement shall for all purposes be governed by and
      -------------
      interpreted in accordance with the laws of England and Wales and each
      Party hereby irrevocably submits to the non-exclusive jurisdiction of the
      courts of England and Wales.

13.3  Force Majeure.  Neither Party will be responsible for any failure to
      -------------
      fulfil its obligations under this Agreement due to causes beyond its
      reasonable control, including, without limitation, acts or omissions of
      government or military authority, acts of God, fires, floods, riots or
      wars.

13.4  Binding Nature and Assignment.  FTK shall be entitled to assign any
      -----------------------------
      benefit or transfer, delegate or sub-contract any of its duties or
      obligations under this Agreement to any company within the Pearson Group
      which is the successor business to all or a substantial part of FTK's
      business without the prior written consent of Docent, but neither party
      may otherwise assign this Agreement or delegate such Party's obligations
      hereunder without the prior written consent of the other, which such
      consent shall not be unreasonably withheld. Subject to the preceding
      sentence, this Agreement, including any Schedules, shall be binding upon
      the Parties, their heirs and assigns.

115   Notices.  All notices, requests, demands, and determinations under this
      -------
      Agreement (other than routine operational communications), shall be in
      writing and shall be deemed duly given (i) when delivered by hand, (ii)
      one (1) business day after being given to an express, overnight courier
      with a reliable system for tracking delivery, (iii) when sent by confirmed
      facsimile with a copy delivered by another means specified in this
      Section, or (iv) four (4) business days after the day of mailing, when
      mailed by registered or certified mail, return receipt requested, postage
      prepaid, and addressed to the address below:

      If to Docent, to

      Docent Inc.
      2444 Charleston Road
      Mountain View

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                                       16
<PAGE>
       CA 94043
       Attn:  Don Lundgren, Chief Finance Officer
       Fax: + 1 650 962 9411

       With a copy to the Docent Inc company attorney at the above address

       If to FTK, to

       FT Knowledge Limited
       Wellington House
       8 Upper St. Martin's Lane
       London WC2H 9DL
       Attn: Pippa Wicks, Chief Executive
       Fax: + 44 20 7845 0701

       With a copy to the FT Knowledge company secretary at its registered
       office.

       A Party may from time to time change its address or designee for
       notification purposes by giving the other prior written notice of the new
       address or designee and the date upon which it will become effective.

13.6   Severability. In the event that any provision of this Agreement conflicts
       ------------
       with the law under which this Agreement is to be construed or if any such
       provision is held invalid by an arbitrator or a court with jurisdiction
       over the Parties, such provision shall be deemed to be restated to
       reflect as nearly as possible the original intentions of the Parties in
       accordance with applicable law. The remainder of this Agreement shall
       remain in full force and effect.

13.7   Consents and Approval.  Except where expressly provided as being in the
       ---------------------
       sole discretion of a Party, where agreement, approval, acceptance,
       consent, or similar action by either Party is required under this
       Agreement, such action shall not be unreasonably delayed or withheld. An
       approval or consent given by a Party under this Agreement shall not
       relieve the other Party from responsibility for complying with the
       requirements of this Agreement, nor shall it be construed as a waiver of
       any rights under this Agreement, except as and to the extent otherwise
       expressly provided in such approval or consent.

13.8   Waiver of Default  No waiver or discharge hereof shall be valid unless in
       -----------------
       writing and signed by an authorised representative of the Party against
       which such amendment, waiver, or discharge is sought to be enforced. A
       delay or omission by either Party hereto to exercise any right or power
       under this Agreement shall not be construed to be a waiver thereof. A
       waiver by either of the Parties of any of the covenants to be performed
       by the other or any breach thereof shall not be construed to be a waiver
       of any succeeding breach thereof or of any other covenant.

13.9   Cumulative Remedies. Except as otherwise expressly provided, all remedies
       -------------------
       provided for in this Agreement shall be cumulative and in addition to and
       not in lieu of any other remedies available to either Party at law, in
       equity or otherwise.

13.10  Public Disclosures.  All media releases, public announcements, and public
       ------------------
       disclosures relating to this Agreement or the subject matter of this
       Agreement, including promotional or marketing material, but not including
       announcements intended solely for internal distribution or disclosures to
       the extent required to meet legal or regulatory requirements beyond the
       reasonable control of the disclosing Party, shall be co-ordinated with
       and shall be subject to approval by each Party prior to release.

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<PAGE>

13.11  Third Party Beneficiaries.  Except as otherwise provided in this
       -------------------------
       Agreement, this Agreement shall not be deemed to create any rights in
       third parties, including suppliers, end users and customers of a Party,
       or to create any obligations of a Party to any such third parties.

13.12  Amendment. This Agreement, including any Schedule, shall not be modified,
       ---------
       amended or in any way altered except by an instrument in writing signed
       by both Parties.

13.13  Interpretation.
       --------------

       a.      Terms other than those defined in this Agreement shall be given
               their plain English meaning, and those terms, acronyms and
               phrases known in the telecommunications and information
               technology services industries shall be interpreted in accordance
               with their generally known meanings. Unless the context otherwise
               requires, words importing the singular include the plural and
               vice-versa.

       b.      References to "Clause," "Section," and "Schedule" mean references
               to a clause, section or schedule of this Agreement, as
               appropriate, unless otherwise specifically stated.

       c.      The clause and schedule headings in this Agreement are intended
               to be for reference purposes only and shall in no way be
               construed to modify or restrict any of the terms or provisions of
               this Agreement.

       d.      The words "include," "includes" and "including," when following a
               general statement or term, are not to be construed as limiting
               the general statement or term to any specific item or matter set
               out or to similar items or matters, but rather as permitting the
               general statement or term to refer also to all other items or
               matters that could reasonably fall within its broadest scope.

       e.      All dollar amounts referred to in this Agreement are in United
               States dollars.

       f.      References to one gender import references to all genders.

13.14  Counterparts.  This Agreement may be executed in several counterparts,
       ------------
       all of which taken together shall constitute one single agreement between
       the Parties.

13.15  Entire Agreement. Save with respect to fraudulent misrepresentation, this
       ----------------
       Agreement, including any attached Schedules, constitutes the entire
       agreement between the Parties with respect to the subject matter in this
       Agreement, and supersedes all prior agreements, whether written or oral,
       as well as any terms which may be incorporated on any purchase order,
       with respect to the subject matter contained in this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective
Date.

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<PAGE>
Signed for and on behalf of                       Signed for and on behalf of
Knowledge Limited                                 Docent Netherlands B.V.

/s/ #####                                         /s/ Dave Ellett
---------------------------------------------     ------------------------------
Authorised Signature                              Authorised Signature

#####                                             President & CEO
---------------------------------------------     ------------------------------
Title                                             Title

#####                                             Dave Ellett
---------------------------------------------     ------------------------------
Name (print)                                      Name (print)

26 May 2000                                       26 May 2000
---------------------------------------------     ------------------------------
Date                                              Date

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                                       19

<PAGE>

                                   SCHEDULE 1

                                  FTK PRODUCT

Product                   Medium       Referral Fee ##### [#####]
-------                   ------       --------------------------

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                                       20
<PAGE>

                                   SCHEDULE 2

                            SUPPORT AND MAINTENANCE

1    Corrections.  Docent will provide Corrections for the resolution of
     -----------
Severity 3 Software Errors. Such Corrections may be made available to FTK
through Docent's Web site. Any Corrections shall be deemed to be Software and
subject to the terms of this Agreement.

2.   Updates and Upgrades.  Docent will provide FTK with Updates and Upgrades as
     --------------------
it provides to other licensees of the Software from time to time.  Any Updates
or Upgrades shall be deemed to be Software and subject to the terms of this
Agreement.

3.   Installation Assistance.  FTK is responsible for installation of
     -----------------------
Corrections, Updates and/or Upgrades provided pursuant to this Agreement.

4.   Telephone Support.  With the exception of American and English national
     -----------------
holidays, when no support will be available, Docent telephone support
representative(s) shall be available to receive FTK telephone calls 24 hours per
day, 7 days per week, 52 weeks per year. Such telephone support
representative(s) will serve as FTK's interface with Docent, will accept Error
Reports and will ensure that reported Software Errors are handled in a timely
manner. All Software Errors will be investigated and if the Software Errors
relates to the Software, or is directly caused by the Software, (a) an Error
Report will be created, (b) the Software Error will be assigned a Severity
Level, and (c) the Software Error will be resolved in accordance with the
procedures and processes for error resolution below.

5.   E-mail Support.  Docent shall be able to receive e-mail from FTK that will
     --------------
serve as an alternate interface with Docent.  Docent agrees to accept Error
Reports by e-mail and will ensure that Software Errors reported in this manner
are handled in a timely manner.  All Software Errors reported via e-mail will be
investigated in the same manner as telephone calls and as described under
Telephone Support above, and e-mail support will, with the exception of American
and English national holidays, when no support will be provided, be available 24
hours per day, 7 days per week, 52 weeks per year.  Proof as to the sending of
an email does not equate to proof of receipt.

6.   Error Resolution.
     ----------------

     6.1  Severity Level 1.  Docent will take immediate steps toward solving the
          ----------------
Software Error. Docent will use its best endeavours to resolve Severity Level 1
Software Errors as soon as practicable with due consideration as to the
seriousness of the implications of an error of this magnitude.  When a Severity
Level 1 Software Error is reported, Docent will assign resources necessary to
correct the Software Error. If system access is required, FTK will provide a
contact available to Docent and access to its system and software for the
duration of the error correction procedures. Docent shall not be liable for any
delay caused through failure by FTK to provide such a contact in a prompt
manner.

     6.2  Severity Level 2.  Docent will analyse Severity Level 2 Software
          ----------------
Errors in the order that they are reported and will use all reasonable
endeavours to respond in each instance within twenty-four (24) hours.  Docent
will use all reasonable endeavours to resolve Severity Level 2 Software Errors
as soon as practicable and will respond within 24 hours with a report as to its
understanding of the seriousness of the error and an estimate as to how long it
should take to correct such an error. Severity Level 1 Software Errors will take
priority over Severity Level 2 Software Errors. Docent will assign appropriate
technical resources to Severity Level 2 Software Errors.

     6.3  Severity Level 3.  Docent will research Severity Level 3 Software
          ----------------
Errors in the order that they are reported and will use all reasonable
endeavours to respond in each instance within thirty-six (36) hours. Docent will
use all reasonable endeavours to resolve Severity Level 3 Software Errors as
soon as practicable and will respond within 36 hours with a report as to its
understanding of the seriousness of the error and an estimate as to how long it
should take to correct such an error.

#####CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                       21

<PAGE>

Severity Levels 1 and 2 Software Errors will take priority over Severity Level 3
Software Errors. Docent will assign appropriate technical resources to Severity
Level 3 Software Errors.

6.4     Severity Level 4.  Docent will research Severity Level 4 Software Errors
        ----------------
in order that they are reported and will use all reasonable endeavours; to
respond in each instance within five working days. Docent will endeavour to
resolve Severity Level 4 Software Errors in the next scheduled Update or Upgrade
or make Corrections available to FTK on Docent's website. In addition Docent
will endeavour to provide FTK with advice as to how a work-around may be
achieved as soon as it reasonably can. Severity Levels 1,2 and 3 Software Errors
will take priority over Severity Level 4 Software Errors.

6.5     Severity Level 5.  Docent will research Severity Level 5 Software Errors
        ----------------
after all other Severity Level Software Errors. Docent may correct Severity
Level 5 Software Errors in the next scheduled Update or Upgrade or make
Corrections available to FTK on Docent's website.

#####CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                       22

<PAGE>

                                  SCHEDULE 3

                  PRICE LIST FOR DOCENT SOFTWARE AND SERVICES

Docent Enterprise 4.5 ##### Software Licensing Pricing

Recommended for ##### that can estimate ##### the ##### and prefer #####

##### fee, ##### license to use the following Docent ##### modules;
#####, #####, #####, #####, #####, (#####) is priced separately.

Includes unlimited number of copies of software as necessary to support
specified number of named users.

--------------------------------------------------------------------------------
#####                  #####         #####        #####        #####       #####

           #####
--------------------------------------------------------------------------------
#####      #####                    $#####       $#####       $#####      $#####
--------------------------------------------------------------------------------
#####      #####       #####        $#####       $#####       $#####      $#####
--------------------------------------------------------------------------------
#####      #####       #####        $#####       $#####       $#####       #####
--------------------------------------------------------------------------------
#####      #####       #####        $#####       $#####       $#####       #####
--------------------------------------------------------------------------------
#####      #####       #####        $#####       $#####       $#####       #####

The Price is calculated based on ##### and reflects ##### additional users.  All
customers must ##### users (or $#####).  #####

Example:  For ##### the price is calculated as follows: Price for ##### Price
for ##### is $##### (i.e., #####) = $#####

Maintenance & Support Fee

          #####

          #####

Professional Services - Consulting

        $ #####

#####CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                       23

<PAGE>

                                  SCHEDULE 4

                                   PAYMENTS

                                     #####
                                     -----

1.   Rental Fee
     ----------

1.1   in consideration for the rights granted to FTK under clause 2.2; the
      following sums shall be due to #### on the dates set out below, and shall
       be payable by #####:

     Date                         Payment

     #####                        $#####
     #####                        $#####
     #####                        $#####

2.   Licence Fee
     -----------

2.1  This section 2 shall only apply if #####

2.2  By no later than #####, FTK shall confirm to Docent ####.

     Within 30 days after the end of each calendar quarter thereafter ##### FTK
     shall pay Docent a ####.

     No further ##### regardless of ####.

3.   Support and Maintenance
     -----------------------

3.1  For the duration of this Agreement, on 1 January each year #####, such sum
     to be payable within 30 days after receipt of ####.

     This ##### Support and Maintenance Fee relates to a ####. Once this ####,
     the #### Support and Maintenance Fee shall #### on a #### basis in
     accordance with section 3.2 below, subject to #### per ####. For the
     avoidance of doubt, once there are ####, the #### Support and Maintenance
     Fee payable will be ##### per #####, regardless of any further ##### in
     the #####

      Notwithstanding the foregoing, ####, then from 1 January #### Docent may
      ####.

#####CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                       24

<PAGE>

3.2  FTK shall ##### on a quarterly ####. Once this ####.

     #####.

#####CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION

3.3  In respect of the period from the date hereof until #####, FTK shall pay
     Docent, #####, the sum of ##### by way of Support and Maintenance Fee,
     such sum to be payable #####.

4.   Referral Fees
     -------------

4.1  Sales of #####
     -----

     FTK shall pay to ##### from sales of #### which result from an #####.

     The relevant ##### shall depend upon ####, as set out in Schedule 1.

4.2  Sales of software and ##### services by #####
     ---------------------------------------------

     ##### shall pay to ##### an amount equal to #####% of ##### from sales (or
     #####) by ##### or ##### in accordance with clause 3 of this Agreement.

4.3  Accounting
     ----------

     FTK shall make up its accounts quarterly (at the end of each March, June,
     September and December) and shall render a statement of its Net
     Revenues to Docent within 30 days after the end of the relevant
     quarter. Docent shall then invoice FTK for the relevent Referral Fee, and
     such sum shall be payable within 30 days after receipt by FTK of Docent's
     invoice.

5.   Hosting by FTK or its Affiliates of courses which are supplied by or on
     -----------------------------------------------------------------------
     behalf of the customer
     ----------------------

     FTK shall pay to Docent the sum of $##### on each occasion that #####.

     Payments shall be made in accordance with this section 5 on a ##### basis,
     within ##### days after the end of ##### to which the payment relates.

                 Part B - Payments by FTK Corporate Customers
                 --------------------------------------------

1.   Licence
     -------

1.1  No license fee shall be payable by FTK Corporate Customers in respect of
     any ##### granted by ##### in respect of the period from the date of this
     Agreement until #####.

#####CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                       25

<PAGE>

1.2  If FTK should exercise its option under clause 2.3 to ##### then,
     from ##### until #####, FTK corporate customers will be #####, PROVIDED
     THAT no ##### fee will be payable in respect of ##### who were ##### prior
     to 1 January.

     The ##### available to FTK corporate customers will vary depending on #####
     was initially ##### as follows:

___________________________________________________________________
DATE  #####                        #####

-------------------------------------------------------------------
Prior to 31 December 2003          #####%
-------------------------------------------------------------------
1 January 2004 - 31 December 2004  #####%
-------------------------------------------------------------------
1 January 2005 - 31 December 2010  #####%
-------------------------------------------------------------------

2.   Support and Maintenance
     -----------------------

2.1  By way of standard support and maintenance fee, FTK Corporate customers
     shall be charged, in advance, ####:

     (a)    ##### price list for #### support and maintenance ####; or

     (b)    $#####. for up to ####, plus $#### per #### over ####. There shall
            be no retrospective readjustment in respect of #### during any
            year.

               Part C - Payments by General Corporate Customers
               ------------------------------------------------

1.   Licence
     -------

1.1  ##### respect of the Software shall apply.

2.   Support and Maintenance
     -----------------------

2.1  ##### shall apply.

#####CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                       26<PAGE>

                                                                   Exhibit 10.17

                              Marketing Agreement
                                    Between
                              Docent, Incorporated
                                      And
                      Harvard Business School Publishing

Harvard Business School Publishing has reviewed the Docent platform sufficiently
to make the preliminary judgment that this is the platform on which we would
like to launch HBS Publishing's initial courses.  Additionally we would like to
see Docent become the platform of choice for all HBS external e-learning
offerings and, at a third level, to become the platform for the standard-setting
management vertical portal ("Vortal") which HBS is organizing.

1.)   Harvard staff commitments

We would commit at least the following resources and activities:  The following
executives within HBSP will work intensively over the next three months with the
Docent team on identifying improvement areas:

 .  PlatformDirector (being hired now),
 .  Jon Levy (VP, e-Learning Programs), and
 .  Judy Uhl (VP, Higher Education).

They would be assisted by technicians from our IT and Production Departments,
and from the Education Division -- e.g., network administration, content
retrieval and workflow manager, database administrator.

One of these three would become a member of Docent's product Advisory Board.  As
you know, Jon Levy in particular is an early pioneer in the design and delivery
of e-learning offerings, and founded the office of Distance Learning at Cornell,
and is a recognized industry expert; for more information on his background, pls
visit:

http://www.people.cornell.edu/pages/jl63/
-----------------------------------------

2.)   Docent Platform customization

Initial strategy meetings:

We would propose at least one - perhaps several - joint working sessions over
the next three months (and then after release of 5.0) with our colleagues at HBS
Executive Education, Baker Library/Information Resource Center and HBS IT, both
to share experience and features requirements of our HBS collaborative learning
platform, content management, and to specify interoperability requirements.

                                                                 [initials here]

#### CONFIDENTIAL INFORMATION REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                      -1-
<PAGE>

We would invite Docent and arrange sessions to meet with members of our
Development Partners Group, either in formal sessions (held twice per year) or
in one-on-one environments.

Following the #####, we would propose repeating the intensive process outlined
in the first step

Our understanding is that Docent is currently in #####, and will be #####over
the next #####.  Docent will then #####within #####.  #####.

The Platform

As currently configured - and subject to the level of both knowledge and
ignorance which we possess as to the capabilities planned already - the Docent
platform would require in our view significant additions to its design and
functionality at each level.  HBSP is prepared to offer a committed set of
internal HBSP resources and exclusive access to its own research and conclusions
on pedagogical and platform requirements, addressing such topics as:

            Dynamic assembly of ##### for ##### users

            Dynamic linking of ##### and ##### with #####

            Context - sensitive ##### of #####, and ##### among content

            Assessment and evaluation ##### to #####

            Creation of a ##### for completion of ####, which includes ####

            #####  Standards for mapping content

            Richer Collaborative tools based on ##### (drawing on ##### case
            method heritage)

            Integration ##### into an overall course - e.g., #####

            Better integration of courses developed outside the #####
            environment

            Dynamic assembly of #####

                                                                 [initials here]

#####CONFIDENTIAL INFORMATION REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                      -2-
<PAGE>

            Increased robustness of the ##### currently platform supports #####
            assessments, not ##### assessments.

     More seamless, standard integration of #####, including #####,
     ##### #####, etc.

     Development of features / capabilities needed for #####

     Enhancement of database capability for enterprise assessment of a
     groups of learners

Please note that while these are topics which we think merit material
enhancement, we are not aware of all that Docent may already have planned and,
at the same time, there very likely are additional areas we identify whom
functionality will need to be created or enhanced.

Please note as well that while we can explicitly commit to our provision of
design and IT resources, we would anticipate as well arranging contributions
from our key outside clientele (HBSP has a five-year old consortium of 25+
corporations which comprise our "Development Partners Group"), our third-party
developers (e.g., Cognitive Arts and VIS), and from our colleagues directly
within HBS, both in the faculty and in the administrative functions, such as
Executive Education and IT.

Finally, we would note that HBS is by its very nature obliged to express an
unusually thoughtful and forward thinking point of view on e-learning, and to
set standards that over time are adopted by others.  This was the case with the
"case method" for business education, and we aim, with those we work with, to
set it for e-learning.

3.)   Marketing activities:

While HBS has restrictive policies on outright endorsements, we would
participate in joint press releases, and joint presentations in conferences,
standards setting forums, open houses, etc.  Any mention of Harvard Business
School Publishing, or use of the HBSP marks, must be reviewed and approved by
HBSP in writing before use.

                                                   [initials here]

Equity Participation: In recognition of the strategic nature of this
relationship between our two companies, Docent will offer equity participation
to Harvard Business School Publishing in the form of warrants against our stock
in the following amount to be exercised within twelve (12) months from the
Effective Date of this Agreement. This equity participation is being given
in part to provide Harvard Business School with an incentive to help Docent
succeed through equity participation.

 .  50.000 warrants for Series E Preferred Stock at $7.2 per share
                                                                 [initials here]

#####CONFIDENTIAL INFORMATION REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                      -3-
<PAGE>

The exact form of #####is attached as Exhibit A to this Marketing Agreement.

4.)   General:

This agreement shall last indefinitely; however, either party may terminate this
agreement for any or no reason upon thirty (30) days prior written notice.  This
agreement is governed by California law and is the entire agreement between the
parties concerning its subject matter, superseding and replacing all prior oral
or written understandings or agreements between the parties concerning this
subject matter.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their authorized representatives on March 31, 2000.

The Effective Date of this Agreement shall be March 31, 2000.

Harvard Business School Publishing    Docent, Inc.

By /s/ #####                          By /s/ Dave Ellett
   -------------------------             -----------------------

Name #####                            Name Dave Ellett
          ------------------               ---------------------

Title #####                           Title President/CEO
           -----------------                --------------------

Date: 3/31/00                         Date: 3/31/00
      ----------------------                --------------------

#####CONFIDENTIAL INFORMATION REDACTED AND FILED SEPARATELY WITH THE COMMISSION

                                      -4-
<PAGE>

                                                                    No. PEW-(CD)

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR ANY STATE SECURITIES LAWS.
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN
OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED.

                    WARRANT TO PURCHASE  UP TO 50,000 SHARES
                       OF CONVERTIBLE PREFERRED STOCK OF
                                  DOCENT, INC.
                   (Void after 5:00 p.m. on  March 31, 2001)

  This Warrant is granted to Harvard Business School Publishing, a Massachusetts
___________________  with a place of business at
____________________________________ __________________, MA ("Grantee") by
Docent, Inc. with its principal office at 2444 Charleston Road, Mountain View,
CA 94043 (the "Company"), a Delaware corporation.

  Subject to the provisions hereinafter set forth, Grantee or its assigns
(collectively, "Holder"), for value received, is entitled to purchase from the
Company a maximum of fifty thousand (50,000) shares of the Series E Convertible
Preferred Stock ("Series E Preferred") of the Company ("Exercise Shares") at the
purchase price per share that is equal to $7.52 per share ("Exercise Price").

  This warrant ("Warrant") may be exercised, at Holder's sole discretion, from
March 31, 2000 (the "Date of Grant") until 5:00 p.m. on March 31, 2001 (the
"Expiration Date").  This Warrant may be exercised from time to time and in
whole or in part upon surrender to the Company at its principal office (or at
such other location as the Company may advise Holder in writing) of this Warrant
properly endorsed with the Form of Subscription (attached hereto as Exhibit A)
duly filled in and signed.  Upon exercise of this Warrant, Holder shall have the
same rights, preferences and privileges, as set forth in the Company's Amended
and Restated Certificate of Incorporation, as holders of the Series E Preferred,
as the case may be, and as set forth in the preceding paragraph, that Holder has
purchased.  Prior to such exercise, the Exercise Price and the number of shares
purchasable hereunder are subject to adjustment as provided in Section 4 of this
Warrant.

  This Warrant is being granted to Grantee by Docent in recognition of the
Marketing Agreement they are concurrently entering into in part in order to give
Grantee an incentive to help make Docent successful by allowing Grantee to share
in Docent's success through equity appreciation.

  This Warrant is subject to the following terms and conditions:

  1. Exercise; Issuance of Certificates; Payment for Shares. This Warrant is
exercisable at the option of Holder, at any time and from time to time, up to
the Expiration Date,
<PAGE>

for all or any part of the shares of Series E Preferred (but not for a fraction
of a share) which may be purchased hereunder. The Company agrees that the shares
of Series E Preferred purchased under this Warrant shall be deemed to be issued
to Holder as the record owner of such shares as of the close of business on the
date (the "Exercise Date") on which this Warrant shall have been surrendered,
properly endorsed, the completed, executed Form of Subscription delivered and
the applicable payment made for such shares. Certificates for the shares of
Series E Preferred so purchased, together with any other securities or property
to which Holder is entitled upon such exercise, shall be delivered to Holder by
the Company at the Company's expense within a reasonable time after the rights
represented by this Warrant have been so exercised. In case of a purchase of
less than all the shares which may be purchased under this Warrant, the Company
shall cancel this Warrant and execute and deliver a new Warrant or Warrants of
like tenor for the balance of the shares purchasable under the Warrant
surrendered upon such purchase to Holder within a reasonable time. Each stock
certificate so delivered shall be in such denominations of Series E Preferred as
may be requested by Holder and shall be registered in the name of such Holder
or, subject to Section 8, each Holder's designee.

  2. Net Exercise. Notwithstanding any provisions herein to the contrary, if the
fair market value of one share of the Exercise Shares is greater than the
Exercise Price (at the date of calculation as set forth below), in lieu of
exercising this Warrant by payment of cash, the Holder may elect to receive
shares equal to the value (as determined below) of this Warrant (or the portion
thereof being canceled) by surrender of this Warrant at the principal office of
the Company together with the properly endorsed Notice of Exercise in which
event the Company shall issue to the Holder a number of shares of Series E
Preferred computed using the following formula:

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

         Where      X =  the number of shares of Exercise Shares to be
                         issued to the Holder

                    Y =  the number of shares of Exercise Shares purchasable
                         under the Warrant or, if only a portion of the Warrant
                         is being exercised, the portion of the Warrant being
                         canceled (at the date of such calculation)

                    A =  the fair market value of one share of the Company's
                         Exercise Shares on the Exercise Date

                    B =  Exercise Price (as adjusted to the date of such
                         calculation)

     For purposes of the above calculation, the fair market value of one share
of Exercise Shares shall be determined by the Company's Board of Directors in
good faith; provided, however, that in the event that this Warrant is exercised
pursuant to this Section (A) after the Company's initial public offering, the
fair market value on the Exercise Date shall be the closing price of the
Company's Common Stock on the market on which it is traded and (B) on the date
of the Company's initial public offering and the notice of exercise was received
prior to such date

                                       2
<PAGE>

with a specification that such exercise be effective upon the initial public
offering, then the fair market value of one share of Exercise Share shall be the
per share offering price to the public of the Company's initial public offering.
Thus, if this Warrant is exercised in connection with the Company's initial
public offering of its Common Stock as provided in (B) above, the fair market
value per share of Exercise Shares shall be the product of (i) the per share
offering price to the public of the Company's initial public offering and (ii)
the number of shares of Common Stock into which each share of Series E Preferred
is then convertible at the time of such exercise.

  3. Shares to Be Fully Paid. The Company covenants and agrees that all shares
of Series E Preferred that may be issued upon the exercise of this Warrant
shall, upon such exercise, be duly authorized, validly issued, fully paid and
nonassessable and free from all preemptive rights of any stockholder and free of
all taxes, liens and charges with respect to the issue thereof. The Company
shall take all such action as may be necessary to assure that such shares of
Series E Preferred may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of any domestic securities
exchange upon which the Series E Preferred may be listed; provided however, that
the Company shall not be required to effect a registration under federal or
state securities laws with respect to such exercise. The Company shall not take
any action that would result in any adjustment of the Exercise Price or number
of shares purchasable hereunder (as set forth in Section 4 hereof) (i) if the
total number of shares of Series E Preferred issuable after such action upon
exercise of all outstanding options, rights and warrants, together with all
shares of Series E Preferred then outstanding and all shares of Series E
Preferred then issuable upon exercise of all options, rights and warrants and
upon the conversion of all convertible securities then outstanding, would exceed
the total number of shares of Series E Preferred then authorized by the
Company's Certificate of Incorporation, or (ii) if the total number of shares of
Common Stock issuable after such action upon the conversion of all such shares
of Series E Preferred, together with all shares of Common Stock then issuable
upon exercise of all outstanding options, rights and warrants and upon the
conversion of all such shares of Series E Preferred, together with all shares of
Common Stock then outstanding and all shares of Common Stock then issuable upon
exercise of all options, rights and warrants and upon the conversion of all
convertible securities then outstanding would exceed the total number of shares
of Common Stock then authorized by the Company's Certificate of Incorporation.

  4. Adjustments. The Exercise Price and the number of shares purchasable
hereunder are subject to adjustment from time to time as follows:

       4.1 Conversion of Preferred Stock. Should all of the Company's Preferred
Stock be, or if outstanding would be, at any time prior to the expiration of
this Warrant or any portion thereof, converted into shares of the Company's
Common Stock in accordance with the Company's Certificate of Incorporation, then
this Warrant shall become immediately exercisable for that number of shares of
the Company's Common Stock equal to the number of shares of the Common Stock
that would have been received if this Warrant had been exercised in full and the
Series E Preferred received thereupon had been simultaneously converted
immediately prior to such event, and the Exercise Price shall immediately be
adjusted to equal the quotient obtained by dividing (i) the aggregate Exercise
Price of the maximum number of shares of Series E Preferred for which this
Warrant was exercisable immediately prior to such conversion, by (ii) the number
of shares of Common Stock for which this Warrant is exercisable immediately
after such conversion. For purposes of the foregoing, the "Certificate of
Incorporation" shall mean the

                                      3
<PAGE>

Certificate of Incorporation of the Company as amended and/or restated and
effective immediately prior to the conversion of all of the Company's Preferred
Stock. At the time of any such conversion of all of the Company's Preferred
Stock, references herein to "Series E Preferred or Preferred Stock" shall be
deemed to refer to the Company's Common Stock to the extent necessary to give
appropriate meaning to the provisions hereof.

       4.2 Merger, Sale of Assets, etc. If at any time while this Warrant, or
any portion hereof, is outstanding and unexpired there shall be (i) a
reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), (ii) a merger or
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or a reverse triangular merger in which the
Company is the surviving entity but the shares of the Company's capital stock
outstanding immediately prior to the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash, or
otherwise, or (iii) a sale, lease or other transfer of the Company's properties
and assets as, or substantially as, an entirety to any other person, then, as a
part of and as a condition to such reorganization, merger, consolidation, sale,
lease or transfer, lawful provision shall be made so that the holder of this
Warrant shall thereafter be entitled to purchase and receive upon exercise of
this Warrant, during the period specified herein and upon payment of the
Exercise Price then in effect, the number of shares of stock or other securities
or property of the successor corporation resulting from such reorganization,
merger, consolidation, sale or transfer that a holder of the shares deliverable
upon exercise of this Warrant would have been entitled to receive in such
reorganization, consolidation, merger, sale or transfer if this Warrant had been
exercised immediately before such reorganization, merger, consolidation, sale or
transfer, all subject to further adjustment as provided in this Section. The
foregoing provisions of this Section shall similarly apply to successive
reorganizations, consolidations, mergers, sales and transfers and to the stock
or securities of any other corporation that are at the time receivable upon the
exercise of this Warrant. If the per-share consideration payable to Holder for
shares in connection with any such transaction is in a form other than cash or
marketable securities, then the value of such consideration shall be determined
in good faith by the Company's Board of Directors. In all events, appropriate
adjustment (as determined in good faith by the Company's Board of Directors)
shall be made in the application of the provisions of this Warrant with respect
to the rights and interests of Holder after the transaction, to the end that the
provisions of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares, securities or other property
deliverable after that event upon exercise of this Warrant.

       4.3 Reclassification, etc. If the Company, at any time while this
Warrant, or any portion hereof, remains outstanding and unexpired by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Warrant exist into the same or a
different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as
would have been issuable as the result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section. No adjustment shall be made pursuant to
this Section, upon any conversion of the Preferred Stock which is the subject of
this Section.

                                      4
<PAGE>

       4.4 Split, Subdivision or Combination of Shares. If the Company at any
time while this Warrant, or any portion hereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Warrant exist, into a different number of securities of the
same class, the Exercise Price for such securities shall be proportionately
decreased in the case of a split or subdivision or proportionately increased in
the case of a combination. Upon each such split, subdivision or combination,
Holder shall thereafter be entitled to purchase at the Exercise Price resulting
from such adjustment, the number of shares obtained by multiplying the Exercise
Price in effect immediately prior to such adjustment by the number of shares
purchasable pursuant hereto immediately prior to such adjustment, and dividing
the product thereof by the Exercise Price resulting from such adjustment.

       4.5 Adjustments for Dividends in Stock or Other Securities or Property.
If while this Warrant, or any portion hereof, remains outstanding and unexpired,
the holders of the securities as to which purchase rights under this Warrant
exist at the time shall have received, or, on or after the record date fixed for
the determination of eligible stockholders, shall have become entitled to
receive, without payment therefor, other or additional stock, other securities,
property or rights or options to subscribe for or purchase or otherwise acquire
any of the foregoing (other than cash) of the Company, by way of dividend, then
and in each case, this Warrant shall represent the right to acquire, in addition
to the number of shares of the security receivable upon exercise of this
Warrant, and without payment of any additional consideration therefor, the
amount of such other or additional stock, other securities, property or rights
or options to subscribe for or purchase or otherwise acquire any of the
foregoing (other than cash) of the Company that such holder would hold on the
date of such exercise had it been the holder of record of the security
receivable upon exercise of this Warrant on the date hereof and had thereafter,
during the period from the date hereof to and including the date of such
exercise, retained such shares and/or all other additional stock available by it
as aforesaid during such period, giving effect to all adjustments called for
during such period by the provisions of this Section.

       4.6 Certificate as to Adjustments. Upon the occurrence of each adjustment
or readjustment pursuant to this Section, the Company at its expense shall
promptly compute such adjustment or readjustment in accordance with the terms
hereof and furnish to Holder a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall upon the written request at any time of
Holder, furnish or cause to be furnished to Holder a like certificate setting
forth: (i) such adjustments and readjustments; (ii) the Exercise Price at the
time in effect; and (iii) the number of shares and the amount, if any, of other
property that at the time would be received upon the exercise of the Warrant.

       4.7 No Impairment. The Company will not, by any voluntary action, avoid
or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Section and in
the taking of all such action as may be necessary or appropriate in order to
protect the rights of Holder against impairment.

       4.8 Anti-Dilution Protection. Prior to exercise of this Warrant, Holder
shall be entitled to the anti-dilution protection provided to the holders of
Preferred Stock.

                                       5
<PAGE>

       5. Issue Tax. The issuance of certificates for shares of Series E
Preferred upon the exercise of the Warrant shall be made without charge to
Holder for any issue tax (other than any applicable income taxes) in respect
thereof; provided however, that the Company shall not be required to pay any tax
which may be payable in respect of any transfer involved in the issuance and
delivery of any certificate in a name other than that of Holder.

       6. Closing of Books. The Company will at no time close its transfer books
against the transfer of any warrant or of any shares of Series E Preferred
issued or issuable upon the exercise of any warrant in any manner which
interferes with the timely exercise of this Warrant.

       7. No Voting or Dividend Rights; Limitation of Liability. Nothing
contained in this Warrant shall be construed as conferring upon Holder the right
to vote or to consent or to receive notice as a stockholder of the Company or
any other matters or any rights whatsoever as a stockholder of the Company. No
dividends or interest shall be payable or accrued in respect of this Warrant or
the interest represented hereby or the shares purchasable hereunder until, and
only to the extent that, this Warrant shall have been exercised. No provisions
hereof, in the absence of affirmative action by Holder to purchase shares of
Series E Preferred, and no mere enumeration herein of the rights or privileges
of Holder, shall give rise to any liability of Holder for the Exercise Price or
as a stockholder of the Company, whether such liability is asserted by the
Company or by its creditors.

       8. Warrants Transferable. Subject to compliance with applicable federal
and state securities laws, the Company's Bylaws and provided that Holder does
not transfer any interest in this Warrant to a competitor of the Company or
entity affiliated with a competitor of the Company, this Warrant and all rights
hereunder are transferable, in whole or in part, only with the written consent
of the Company, which consent shall not be unreasonably withheld or delayed
without charge to Holder (except for transfer taxes), upon surrender of this
Warrant properly endorsed. Each Holder of this Warrant, by taking or holding the
same, consents and agrees that this Warrant, when endorsed in blank, shall be
deemed negotiable, and that Holder, when this Warrant shall have been so
endorsed, may be treated by the Company, at the Company's option, and all other
persons dealing with this Warrant, as the absolute owner hereof for any purpose
and as the person entitled to exercise the rights represented by this Warrant,
or to the transfer hereof on the books of the Company any notice to the contrary
notwithstanding; but until such transfer on such books, the Company may treat
the registered owner hereof as the owner for all purposes.

       9. Lockup. In the event of the first underwritten public offering of any
securities of the Company, the Company (or a representative of the underwriters)
may require that you not sell, dispose of, transfer, make any short sale of,
grant any option for the purchase of, or enter into any hedging or similar
transaction with the same economic effect as a sale, any shares of Series E
Preferred, Common Stock or other securities of the Company held by you, for a
period of time specified by the underwriter(s) (not to exceed one hundred eighty
(180) days) following the effective date of a registration statement of the
Company filed under the Act. You further agree to execute and deliver such other
agreements as may be reasonably requested by the Company and/or the
underwriter(s) which are consistent with the foregoing or which are necessary to
give further effect thereto. In order to enforce the foregoing covenant, the
Company may impose stop-transfer instructions with respect to your Common Stock
until the end of such period;

                                       6
<PAGE>

provided however, that such limitations under this section shall only exits if
the officers and directors of the Company are subject to these same
restrictions.

       10. Rights and Obligations Survive Exercise of Warrant. The rights and
obligations of the Company and Holder set forth in Sections 8 and 9 herein,
shall survive the exercise of this Warrant, in whole or in part.

       11. Modification and Waiver. This Warrant and any provision hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

       12. Notices. Any notice, request or other document required or permitted
to be given or delivered to Holder or the Company shall be sent by facsimile or
delivered or sent by certified mail, postage prepaid, to each such holder or to
the address indicated on this Warrant or such other facsimile number or address
as either may from time to time provide to the other and shall be effective
three (3) business days after mailed via first-class mail, three (3) business
days after mailed via registered or certified mail, return receipt requested,
one (1) business day after mailed via overnight Express Mail, the day of
transmission of a facsimile or upon delivery if delivered by hand or by
messenger or courier delivery service.

       13. Binding Effect on Successors. This Warrant shall be binding upon any
corporation succeeding the Company by merger, consolidation or acquisition of
all or substantially all of the Company's assets. All of the covenants and
agreements of the Company hereunder shall inure to the benefit of the successors
and assigns of Holder.

       14. Descriptive Headings and Governing Law. The description headings of
the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. This Warrant shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of California as such laws apply to
agreements among California residents made and to be performed entirely within
the State of California. Any legal action or other legal proceeding relating to
this Warrant shall be brought or otherwise commenced in any state or federal
court located in San Mateo, San Francisco or Santa Clara counties in the State
of California. Each Holder of this Warrant (i) expressly and irrevocably
consents and submits to the jurisdiction of each state and federal court located
in San Mateo, San Francisco or Santa Clara counties in the State of California
in connection with any such legal proceeding; (ii) agrees that each state and
federal court located in San Mateo, San Francisco or Santa Clara counties in the
State of California shall be deemed to be a convenient forum; and (iii) agrees
not to assert (by way of motion, as a defense or otherwise), in any such legal
proceeding commenced in any state or federal court located in San Mateo, San
Francisco or Santa Clara counties in the State of California, any claim that
such party is not subject personally to the jurisdiction of such court, that
such legal proceeding has been brought in an inconvenient forum, that the venue
of such proceeding is improper or that this Warrant or the subject matter of
this Warrant may not be enforced in or by such court

       15. Lost Warrants. The Company represents and warrants to Holder that
upon receipt of evidence reasonably satisfactory to the Company of the loss,
theft, destruction, or mutilation of this Warrant and, in the case of any such
loss, theft or destruction, upon receipt of an

                                       7
<PAGE>

indemnity reasonably satisfactory to the Company, or in the case of any such
mutilation upon surrender and cancellation of such Warrant, the Company, at its
expense, will make and deliver a new Warrant, of like tenor, in lieu of the
lost, stolen, destroyed or mutilated Warrant.

       16. Fractional Shares. No fractional shares shall be issued upon exercise
of this Warrant. The Company shall, in lieu of issuing any fractional share, pay
the holder entitled to such fraction a sum in cash based on the fair market
value of the Series E Preferred on the date of exercise, as reasonably
determined in good faith by the Board of Directors.

       17. Severability. The invalidity or unenforceability of any provision of
this Warrant in any jurisdiction shall not affect the validity or enforceability
of such provision in any other jurisdiction, or affect any other provision of
this Warrant, which shall remain in full force and effect.

       18. Recovery of Litigation Costs. If any legal action or other proceeding
is brought for the enforcement of this Warrant, or because of an alleged
dispute, breach, default, or misrepresentation in connection with any of the
provisions of this Warrant, the successful or prevailing party or parties shall
be entitled to recover reasonable attorneys' fees and other costs incurred in
that action or proceeding, in addition to any other relief to which it or they
may be entitled.

       19. SECURITIES LAW REPRESENATIONS. Grantee represents that Grantee is an
accredited investor by virtue of having $5,000,000 in assets (or by virtue of
being owned entirely by persons who have a net worth in excess of one million
dollars or by persons who had for the past two years and expect to have this
year individual income in excess of two hundred thousand dollars or combined
income with their spouse in excess of three hundred thousand dollars). Grantee
represents that Grantee is acquiring this Warrant, and would be acquiring any
Exercise Shares, for Grantee's own account, for investment, and not to or for
sale in connection with any distribution. Grantee understands that the Exercise
Shares have not been registered under the Securities Act of 1933, as amended, or
any state securities law and therefore cannot be resold unless they are so
registered or unless an exemption from such registration is available. Grantee
understands that any share certificate registering the Exercise Shares shall
bear the legend contained at the top of page 1 of this Warrant Agreement.
Grantee understands that the Exercise Shares comprise restricted securities for
purposes of Rule 144 and as a result cannot be sold in the public market until
at least one year after exercise. Grantee understands that the Company is under
no duty to register the Exercise Shares. Grantee represents that the Grantee has
had the opportunity to ask questions and receive answers concerning the terms
and conditions of this offering and to obtain any additional information which
the Company possesses or can acquire without unreasonable effort or expenses
that is necessary to verify the accuracy of information furnished by the
Company.

                                       8
<PAGE>

In Witness Whereof, the Company has caused this Warrant to be duly granted and
executed this 31st day of March, 2000.

                                    Docent, Inc.
                                    a Delaware corporation

                                    --------------------------------------
                                    David R. Ellett
                                    President and Chief Executive Officer

                                    2444 Charleston Rd.
                                    Mountain View, CA  94043
                                    Fax: (650) 962-9411

Agreed to and accepted:

Harvard Business School Publishing

By:
----------------------------------

                                       9
<PAGE>

                                    Exhibit A

                                SUBSCRIPTION FORM

Date:  ____________,

Via Facsimile: (650) 962-9411

Docent, Inc.
2444 Charleston Rd.
Mountain View, CA  94043

Attn:  President

Ladies and Gentlemen:

     The undersigned hereby elects to exercise the warrant issued to it by
     Docent, Inc. (the "Company"), dated March 31, 2000, (the "Warrant") and to
     purchase thereunder __________________________ shares of the Preferred
     Stock of the Company (the "Shares") at a purchase price of _______________
     per share (the "Purchase Price").

Pursuant to the terms of the Warrant, the undersigned has delivered the Purchase
Price herewith in full in cash or by certified check or wire transfer.  The
undersigned certifies that the Warrant is exercisable at this time.

Very truly yours,

__________________________

By:
   _______________________

Print Name:
           _______________
Title:
      ____________________

                                       1

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