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                                                                   EXHIBIT 10.11

                     SOFTWARE LICENSE AND SERVICES AGREEMENT

        This Software License and Services Agreement ("Agreement") is made
effective December 22, 1998 ("Effective Date") by and between Niku Corporation,
a Delaware corporation with offices at 955-A Charter Street, Redwood City,
California 94063 ("Niku"), and Sybase, Inc., a Delaware corporation, with
offices at 6475 Christie Ave., Emeryville, California 94608 ("Licensee").

1.      DEFINITIONS.

        1.1     "Affiliated Company" means a business entity or entities
                controlled by, under common control with or controlling a party
                to this Agreement. Such business entity or entities will be
                considered affiliated only so long as such control exists.

        1.2     "Authorized Users" means the employees or agents of Licensee who
                are authorized to use the Software, as defined in Exhibit A.

        1.3     "Release(s)" means the releases of the Software to be delivered
                to Licensee under this Agreement, as specified in Exhibit A.

        1.4     "Software" means the binary code versions of the Niku software
                products specified in Exhibit A.

        1.5     "Services" means the implementation services for the Software to
                be provided to Licensee by Niku under this Agreement, as more
                fully described in Exhibit B.

        1.6     "Statement of Work" means a document describing the Services to
                be provided to Licensee by Niku and meets the formal
                requirements stated in Exhibit B.

2.      DELIVERY AND SERVICES.

        2.1     Niku will use reasonable efforts to deliver the Software to
                Licensee according to the delivery terms specified in Exhibit A.

        2.2     After delivery of the Software and pursuant to a mutually agreed
                schedule, Niku will provide Licensee with the Services,
                including the Initial Services (as defined in Exhibit B), at
                Licensee's place of business in accordance with Exhibit B and
                the terms of each Statement of Work. Acceptance of the Software
                will be governed by the Statement(s) of Work and any amendments
                thereto subsequently adopted by the parties.

3.      LICENSE.

        3.1     GRANT. Subject to the payment of the License Fee and compliance
                with the other terms of this Agreement, Niku grants Licensee a
                nonexclusive, nontransferable right and license to make, install
                and use such copies of the Software on server computer systems
                as are reasonably necessary to provide access and use by
                Authorized Users from client computer systems. Licensee may make
                and

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                maintain such copies of the installed Software as are reasonably
                necessary for archival and back-up purposes. To the extent the
                Software incorporates any software licensed by Niku from a third
                party, Niku grants Licensee a sublicense that is co-extensive
                with the foregoing rights to Software. Licensee is expressly
                prohibited from copying or transferring the Software to a third
                party for any purpose other than off-site storage of archival or
                back-up copies. Licensee agrees not to produce a source listing,
                decompile, disassemble, or otherwise reverse engineer the
                Software.

        3.2     PROPRIETARY NOTICES. Licensee must reproduce and shall not
                remove or obscure any notices or markings, including without
                limitation, copyright, trademark, or confidentiality notices, or
                ownership notices on Software and its accompanying
                documentation, including any screen displayed by the Software.

        3.3     RESERVATION OF RIGHTS. Niku retains rights in and to the
                Software not specifically granted to Licensee hereunder, and any
                uses by Licensee of the Software, or any part thereof, beyond
                the scope permitted by this Agreement shall constitute a
                material breach of this Agreement.

        3.4     COMPLIANCE. Niku will have the right to have the Software
                inspected at Licensee's facility as reasonably necessary to
                verify that Licensee's use of the Software is limited to
                Authorized Users. Niku will provide Licensee with reasonable
                notice prior to any inspections. The inspections will be
                conducted by an independent accounting firm reasonably
                acceptable to Licensee. Niku will be limited to conducting one
                (1) such inspection in any twelve (12) month period. The
                accounting firm shall protect the confidentiality of Licensee's
                information and abide by Licensee's reasonable security
                regulations. Niku will bear all costs and expenses associated
                with the exercise of these rights, unless such inspection
                reveals that Licensee is not in compliance with this Agreement,
                in which case, Licensee agrees to pay Licensor the reasonable
                costs of such inspection plus any additional license fees
                related to unauthorized use of the Software.

4.      LICENSE FEE. Licensee will pay Niku license fees for the Software (the
        "License Fee") in the amount and according to the terms specified in
        Exhibit A. In addition to the License Fee, Licensee will pay any
        applicable shipping charges, and sales, use, value-added or similar
        taxes, tariffs or governmental charges, excluding any taxes based on
        Niku's net income. Unless otherwise specifically provided otherwise in
        Exhibit A: (i) the License Fee will be due and payable in full within
        thirty (30) days after receipt of the initial release of the Software by
        Licensee; and (ii) a late charge of one and one half percent (1.5%) per
        month or the highest rate permitted by law, whichever is lower, will
        apply to any overdue balances.

5.      MAINTENANCE. Subject to the payment of annual maintenance fees and entry
        into a separate Maintenance Agreement, Niku will provide Licensee with
        technical support and maintenance on terms no less favorable to Licensee
        than those of the form of agreement

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        attached as Exhibit C. The amount of the annual maintenance fees and
        payment terms are specified in Exhibit A.

6.      TERM AND TERMINATION.

        6.1     TERM. This Agreement commence on the Effective Date and will
                remain in force and effect unless terminated in accordance with
                this Article.

        6.2     TERMINATION. This Agreement may be terminated as follows:

                6.2.1   By either party upon sixty (60) days written notice
                        specifying breach if the other party fails to comply
                        with any of the material terms or conditions of this
                        Agreement unless, within the period of notice, all
                        specified breaches have been cured.

                6.2.2   By Niku immediately upon written notice in the event of
                        the direct or indirect assumption of control of
                        Licensee, or of substantially all of Licensee's assets,
                        by any government, governmental agency or any third
                        party engaged in the development, licensing, or
                        distribution of business applications software products
                        which Niku deems to be in direct or indirect competition
                        with any Niku software products or component
                        technologies.

        6.3     EFFECT OF TERMINATION FOR LICENSEE'S BREACH. In the event of
                termination of this Agreement due to a breach by Licensee, the
                rights and licenses granted to Licensee will immediately
                terminate and Licensee will have no further right to use the
                Software. Within thirty (30) days after termination, Licensee
                must return all copies of the Software in its possession or
                control to Niku, or permanently destroy or disable all such
                copies. Promptly after return or destruction of all such copies,
                a duly authorized officer of Licensee must certify to Niku in
                writing that Licensee has destroyed or returned all copies of
                the Software.

        6.4     EFFECT OF TERMINATION FOR NIKU'S BREACH. In the event of
                termination of this Agreement due to a breach by Niku, the
                rights and licenses granted to Licensee will survive to the
                extent necessary for Licensee to using the Software as permitted
                under this Agreement. Such continuing rights are subject to
                Licensee's continued compliance with the terms of this
                Agreement, including payment of any outstanding portion of the
                License Fee. Nothing will require Niku to provide any support or
                maintenance to Licensee after termination.

        6.5     SURVIVAL. Rights and obligations specified in Articles 1, 3, 6,
                7, 8, 9, 10 and 11 will survive and remain in effect after
                termination hereof.

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7.      CONFIDENTIALITY.

        7.1     The parties may disclose technical, product, financial and
                business information to each other under this Agreement which
                the disclosing party (the "Discloser")considers to be
                confidential ("Confidential Information"). Confidential
                Information shall be limited to information clearly marked as
                confidential, or information which is disclosed verbally and
                identified as confidential in a writing delivered to Licensee
                within thirty (30) days of disclosure.

        7.2     The party receiving Confidential Information (the "Receiver")
                will not reproduce in any form or provide, disclose, or give
                access to Confidential Information to any third party, or to any
                employee or agent not having a legitimate need to know it, and
                shall not use the Confidential Information for any purpose other
                than performing its obligations and exercising its rights under
                this Agreement.

        7.3     This Agreement imposes no obligation upon the Receiver with
                respect to Confidential Information which it can establish by
                legally sufficient evidence: (i) was in the possession of, or
                was known by, Receiver prior to its receipt from Discloser,
                without an obligation to maintain its confidentiality; (ii) is
                or becomes generally known to the public without violation of
                this Agreement; (iii) is obtained by Receiver from a third party
                having the right to disclose it, without an obligation to keep
                such information confidential; or (iv) is independently
                developed by Receiver without the use of Confidential
                Information and without the participation of individuals who
                have had access to the Confidential Information.

        7.4     Each party retains ownership of its respective Confidential
                Information. A Receiver does not acquire any rights in
                Confidential Information under this Agreement, except the
                limited right to use described above.

        7.5     The parties' confidentiality obligations with respect to the
                Confidential Information shall survive the termination of this
                Agreement and will continue for a period of five (5) years from
                the Effective Date, provided that the obligation to maintain the
                confidentiality of any Niku or Licensee source code shall be
                perpetual.

8.      WARRANTY AND DISCLAIMER.

        8.1     Niku warrants that the Software will correctly record, store,
                process and calculate any information dependent on or relating
                to dates on or after January 1, 2000, and will do so in the same
                manner, and with the same functionality, data integrity and
                performance, as such Software records, stores, processes,
                calculates and presents calendar dates on or before December 31,
                1999. All claims related to the above Year 2000 warranty must be
                made no later than January 15, 2001. The ability of the Software
                to perform in the manner described above is dependent upon the

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                receipt of correctly processed and transmitted data from and by
                all non-Niku supplied products (such as hardware, software and
                firmware) that the Licensee uses in connection with the
                Software.

        8.2     OTHER THAN THE EXPRESS WARRANTY OF SECTION 8.1, NIKU DOES NOT
                MAKE AND DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES OR
                CONDITIONS WITH RESPECT TO SOFTWARE INCLUDING, WITHOUT
                LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
                PARTICULAR PURPOSE. No agent of Niku is authorized to incur
                warranty obligations on behalf of Niku or modify these
                limitations.

9.      INDEMNITY.

        9.1     INDEMNIFICATION BY NIKU. Niku will defend and indemnify Licensee
                against a claim that the Software infringes a United States
                trade secret, copyright, or patent, provided that: (i) Licensee
                notifies Niku in writing within sixty (60) days of the claim;
                (ii) Niku has sole control of the defense and all related
                settlement negotiations; and (iii) Licensee provides Niku with
                the assistance, information, and authority reasonably necessary
                to perform the above. Reasonable out-of-pocket expenses incurred
                by Licensee in providing such assistance will be reimbursed by
                Niku.

        9.2     EXCLUSIONS. Niku shall have no liability for any claim of
                infringement based on: (i) use of a superseded release, or a
                release altered by Licensee, of some or all of the Software or
                any modification thereof furnished under this Agreement
                including, but not limited to, Licensee's failure to use
                corrections, fixes, or enhancements within six (6) months of the
                time they are first made available by Niku; (ii) the
                combination, operation, or use of some or all of the Software or
                any modification thereof with information, software,
                specifications, instructions, data, or materials ("Material")
                not furnished by Niku if the infringement would have been
                avoided by not combining, operating, or using the Software or
                the modification thereof, with such Material; (iii) any change,
                not made by Niku, to Software or any modification thereof; or
                (iv) Licensee's misuse of the Software or any modification
                thereof.

        9.3     If the Software is held or is believed by Niku to infringe, Niku
                shall have the option, at its expense, to: (i) modify the
                Software to be non-infringing; (ii) obtain for Licensee a
                license to continue using the Software; or (iii) terminate this
                Agreement and refund a pro rata portion of the License Fee.
                SECTIONS 9.1 THROUGH 9.3 STATE NIKU'S ENTIRE LIABILITY AND
                LICENSEE'S EXCLUSIVE REMEDY FOR CLAIMS OF INFRINGEMENT OF
                INTELLECTUAL PROPERTY RIGHTS RELATED TO THE SOFTWARE.

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10.     LIMITATION OF LIABILITY.

        10.1    LIMITATIONS. Except for express undertakings to indemnify,
                breach of obligations concerning the use of Confidential
                Information, and to the extent not prohibited by applicable law:

                10.1.1  EACH PARTY'S AGGREGATE LIABILITY TO THE OTHER FOR CLAIMS
                        RELATING TO THIS AGREEMENT, WHETHER IN CONTRACT OR IN
                        TORT, WILL BE LIMITED TO THE LICENSE FEE PAID AND OWING
                        BY LICENSEE FOR THE SOFTWARE.

                10.1.2  NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT, PUNITIVE,
                        SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGE IN
                        CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT,
                        INCLUDING LOSS OF BUSINESS, REVENUE, PROFITS, USE, DATA
                        OR OTHER ECONOMIC ADVANTAGE, HOWEVER IT ARISES, WHETHER
                        FOR BREACH OR IN TORT, EVEN IF THAT PARTY HAS BEEN
                        PREVIOUSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

                10.1.3  Liability for damages will be limited and excluded, even
                        if any exclusive remedy provided for in this Agreement
                        fails of its essential purpose.

        10.2    ALLOCATION OF RISK. The parties acknowledge that the foregoing
                limitations of liability represent a reasonable and negotiated
                allocation of risk as between the parties, that these
                limitations constitute an integral part of this Agreement, and
                that absent these limitations the parties would not have
                executed this Agreement. These limitations will apply
                notwithstanding the failure of essential purpose of any limited
                remedy provided herein.

11.     SOURCE CODE ESCROW. If elected by Licensee, Niku will deposit the
        current (and, to the extent requested, future) source code for the
        Software in escrow with a reputable third party escrow agent. Niku will
        make the initial deposit within thirty (30) days from receipt of a
        written notice of election from Licensee. The source code will be
        released to Licensee if (i) Niku ceases operations, files a petition for
        relief in bankruptcy, or is otherwise adjudged insolvent in a court of
        law; or (ii) Niku rejects or fails to perform it obligations under this
        Agreement. Current source code and associated documentation will be
        stored along with the binary code versions of the Software delivered
        hereunder. Costs of establishing and maintaining the escrow account for
        the Software will be borne by Licensee provided that, in the event that
        Niku establishes another escrow account for the same version of the
        Software escrowed hereunder for which Niku bears some or all of the
        costs, Licensee will be made a beneficiary of such other escrow account
        if a reduction in costs to Licensee would result. In the event of the
        release of the source code from the escrow agent, Licensee will have a
        perpetual, worldwide right and license to use, modify, and copy the
        source code for the sole purpose of maintaining the Software for the
        uses contemplated hereunder.

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12.     GENERAL.

        12.1    NOTICES. All written notices required by this Agreement must be
                delivered in person or by means evidenced by a delivery receipt
                to the address specified below or as otherwise notified in
                writing and will be effective upon receipt.

                To Niku:                           To Licensee:
                        Niku Corporation                   Sybase, Inc.
                        955-A Charter Street               6475 Christie Ave.
                        Redwood City, CA 94063             Emeryville, CA 94608
                        Attn: President and CEO            Attn: General Counsel

        12.2    GOVERNING LAW. Any action related to this Agreement will be
                governed by California law and controlling U.S. federal law. No
                choice of law rules of any jurisdiction will apply.

        12.3    RELATIONSHIP. This Agreement is not intended to create a
                relationship such as a partnership, franchise, joint venture,
                agency, or employment relationship. Neither party may act in a
                manner which expresses or implies a relationship other than that
                of independent contractor, nor bind the other party.

        12.4    ATTORNEY'S FEES. In addition to any other relief, the prevailing
                party in any action arising out of this Agreement will be
                entitled to reasonable attorneys' fees and costs.

        12.5    ASSIGNMENT. Neither party may assign or otherwise transfer any
                of its rights or obligations under this Agreement, without the
                prior written consent of the other party, except that Niku may
                assign its right to payment and may assign this Agreement to an
                Affiliated Company.

        12.6    WAIVER. Any express waiver or failure to exercise promptly any
                right under this Agreement will not create a continuing waiver
                or any expectation of non-enforcement.

        12.7    SEVERABILITY. If any provision of this Agreement is held
                invalid, illegal or unenforceable, the validity, legality and
                enforceability of the remaining provisions will not in any way
                be affected or impaired thereby, and will be interpreted, to the
                extent possible, to achieve the purposes as originally expressed
                in the invalid, illegal or unenforceable provision.

        12.8    EXPORT CONTROL. The Software and Confidential Information may be
                subject to U.S. export control laws and export or import
                regulations in other countries. Licensee agrees to comply
                strictly with all such laws and regulations and acknowledges
                that it has the responsibility to obtain such licenses to
                export, re-export, or import the Software and Confidential
                Information as may be required after delivery to Licensee.

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        12.9    FORCE MAJEURE. A party is not liable under this Agreement for
                non-performance, if the non-performance is caused by events or
                conditions beyond that party's control, and provided the party
                makes reasonable efforts to perform under the circumstances.
                This provision does not relieve Licensee of its obligation to
                make any payments then owing.

        12.10   ENTIRE AGREEMENT. This Agreement is the parties entire agreement
                relating to its subject matter. It supercedes all prior or
                contemporaneous oral or written communications, proposals,
                conditions, representations and warranties and prevails over any
                conflicting or additional terms of any quote, order,
                acknowledgement, or other communication between the parties
                relating to its subject matter during the term of this
                Agreement. No modification to this Agreement will be binding,
                unless in writing and signed by a duly authorized representative
                of each party.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives.

NIKU CORPORATION                        SYBASE, INC.

By /s/ HAROLD J. SLAWIK                 By /s/ RICHARD LABARBERA
  ---------------------------------       --------------------------------------
Name:  Harold J. Slawik                 Name:  Richard N. LaBarbera
Title: Vice President                   Title: Senior Vice President & General
                                               Manager, Enterprise
                                               Solutions Division

The Exhibits to this Agreement are:

Exhibit A - SOFTWARE SPECIFIC TERMS, CANCELLATION RIGHTS

Exhibit B - SERVICES

Exhibit C - SOFTWARE MAINTENANCE AGREEMENT

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                                    EXHIBIT A

                  SOFTWARE SPECIFIC TERMS, CANCELLATION RIGHTS

1.      SOFTWARE PRODUCT DESCRIPTION:

        Niku(TM) for IT Consulting, Version 1.0

2.      AUTHORIZED USERS.

        All employees and authorized subcontractors who work for the Sybase
Professional Services division of Sybase, Inc.

3.      DELIVERY.

        Niku will deliver the Software to Licensee in binary code form within
thirty (30) days of the Effective Date of this Agreement.

4.      FEES.

        a) LICENSE FEE. Licensee will pay initial License Fees of One Hundred
Fifty Thousand Dollars (US $150,000) within thirty (30) days of delivery of the
initial release of the Software.

        Subject to the parties' agreement on the scope and content of the
Statements of Work described in Exhibit B, Licensee will also pay the additional
License Fees set forth in each Statement of Work.

        b) MAINTENANCE FEE. Licensee will pay an annual maintenance fee valued
at no greater than twenty percent (20%) of the license fees due hereunder,
including, where appropriate, the license fees payable under Statements of Work
adopted hereunder (the "Maintenance Fee"), for support and maintenance of the
Software provided that, in no event shall such Maintenance Fee percentage exceed
the rate Niku charges any other customer. The Maintenance Fee will apply to the
Software version specified in this Exhibit, and to all upgrades, new versions,
updates, improvements and modifications to the Software which are generally
released by Niku to its licensees and to any future versions of the Software
delivered to Licensee pursuant to a Statement of Work. The Maintenance Fee will
not apply to new products for which Niku charges a separate license fee.
Licensee may terminate its obligation to pay the Maintenance Fee at any time by
terminating the Maintenance Agreement. The Maintenance Fee will be prorated to
the date of termination and any amounts paid for services not yet rendered will
be refunded by Niku.

5.      CANCELLATION RIGHT.

        Licensee will have the right to cancel this Agreement at any time after
payment of the initial installment of the Licensee Fees specified in Exhibit A.
In the event of cancellation, Niku will retain the initial License Fee payment
set forth in Section 4(a), above, and Licensee will

                               Exhibit A, Page 1
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have the right to retain and use the version of the Software in its possession
subject to the applicable terms and conditions of this Agreement, provided that,
in the event that Sybase cancels this Agreement after Niku has begun providing
services under the Statement of Work, the License Fee for such Statement of Work
will be prorated over the portion completed and Licensee will be responsible for
full payment of such prorated portion.

7.      ADDITIONAL TERMS.

        a) Upon the generally available release of Niku(TM) for IT Consulting,
Version 1.0 or the natural successor thereto if such product is not ever
generally released, the following warranty will apply to the Software licensed
hereunder notwithstanding the provisions of Section 8.2 of the Agreement:

        For one year from the generally available release of the Software, Niku
        warrants that, when properly used, the Software will operate in all
        material respects in conformity with its associated documentation, and
        the Software media will be free of defects.

        b) Niku and Licensee anticipate entering into further agreements
regarding Niku's intention to position Sybase as its preferred vendor for its
customers' consulting needs and Niku's continued use of Sybase SQL Anywhere as
its base database technology.

                               Exhibit A, Page 2
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                                    EXHIBIT B

                                    SERVICES

1. SERVICES. Niku will provide software installation and implementation services
("Initial Services") as necessary to meet Licensee's specific business
requirements. Niku will provide up to forty-five (45) person-days of such
services without charge to Licensee. Services beyond this amount will be billed
to Licensee on a time and materials basis according to Niku's standard rates and
terms.

2. STATEMENT OF WORK. In addition to the Initial Services, Niku will provide
additional customization and enhancement services as described in one or more
Statements of Work to be negotiated and agreed upon by the parties. To the
extent that Licensee has not used the full forty-five days of services provided
free of charge for the Initial Services, the balance of such days of service may
be used for the services described under the Statements of Work. Each Statement
of Work will meet the following minimal formal requirements:

        (i)    the scope of work;

        (ii)   the hourly or daily rate for consultants providing services under
        the Statement of Work;

        (iii)  the estimated number of days or hours required for each task
        described in the Statement of Work;

        (iv)   an estimated schedule for completion of the Services;

        (v)    any deliverables; and

        (vi)   an estimate of any materials and equipment Niku will require to
        complete the Services.

        (vii)  acceptance criteria for each deliverable

        (viii) a payment schedule

Any changes to the scope of work or deliverables shall be made by a written
amendment to the applicable Statement of Work. The amendment shall be signed by
an authorized representative of each party prior to implementation of the
changes.

                               Exhibit B, Page 1
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                                    EXHIBIT C
                     FORM OF SOFTWARE MAINTENANCE AGREEMENT

        This Software Maintenance Agreement (the "Agreement") dated as of
[MONTH] [DATE], [YEAR] (the "Effective Date") is by and between the Niku
Corporation ("Niku"), a corporation organized under the laws of the state of
[NIKU'S STATE OF INCORPORATION HERE] with its principal place of business at
[NIKU OFFICIAL ADDRESS HERE] and [NAME OF CUSTOMER HERE] ("Customer"), a (STATE
OF INCORPORATION HERE] corporation with its principal place of business at
[CUSTOMER'S OFFICIAL ADDRESS HERE]

        1. COVERED SOFTWARE. Customer agrees to purchase, and Niku agrees to
furnish, software maintenance services for the Software, as defined in the
Software License and Services Agreement between the parties, including the
associated user documentation (all such computer software programs and
associated user documentation shall be referred to herein as the "Software"), in
accordance with the terms and conditions of this Agreement.

         2. MAINTENANCE SERVICES TO BE PROVIDED BY NIKU. Throughout the term of
this Agreement and subject to the exclusions listed in paragraph 4 below, Niku
will provide the following services with respect to the Software: (a) Niku will
endeavor to correct within a reasonable time any reported failure of the
Software to substantially conform to or perform substantially in accordance with
Niku's published user documentation; (b) Niku will furnish Customer, at no
additional charge (except for taxes, insurance, shipping and handling) with all
updates, improvements and modifications to the Software which are released
generally by Niku to its licensees (all such updates, improvements and
modifications shall be made available for downloading by Niku to the Customer
via the Internet from a Web site designated and maintained by Niku); and (c)
Niku will provide Customer with telephone, facsimile and email based support to
assist Customer in its use of the Software.

        3. SUPPORT AND MAINTENANCE STANDARDS.

        a. The Software's failure to substantially conform to Niku's user
documentation will be divided into three classes of severity: (i) a "critical"
nonconformance shall be any nonconformance causing a complete failure of the
Software or the Customer's computer accessing the Software; (ii) a "serious"
nonconformance shall be any nonconformance which seriously impairs the
functionality of the Software (this includes any critical nonconformances for
which a work-around or detour solution has been devised or identified); and
(iii) a "minor" nonconformance shall be any nonconformance which does not
seriously impair the functionality of the Software.

        b. Niku will provide a response to a report of the above described
nonconformances by Customer according to the following response schedule: (a)
all critical nonconformances shall be responded to by Niku within twenty-four
(24) hours of that time that Customer first reports such nonconformances to
Niku; (b) all serious nonconformances shall be responded to by Niku within three
(3) days of the date that Customer first reports such nonconformances to Niku;
and (c) all minor nonconformances shall be responded to by Niku within seven (7)
days of the date

                               Exhibit C, Page 1
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that Customer first reports such nonconformances to Niku. For purposes of this
Agreement, Niku's duty to "respond" shall consist of (i) delivery of an existing
or new update, modification or enhancement to correct such nonconformance; (ii)
identification of a workaround or detour solution; (iii) a request for more
information for purposes of analyzing or verifying the nonconformance; and (iv)
delivery of a plan for correcting the nonconformance.

        c. Niku will use all reasonable efforts to reach closure on all
nonconformances reported by the Customer to Niku in accordance with the
following schedule: (i) critical nonconformances shall be closed within seven
(7) days of notice to Niku; (ii) serious nonconformances will be closed with
fourteen (14) days of notice to Niku; and (iii) minor conformances will be
closed in next regular Software update generally distributed by Niku to all
licensees. For purposes of this Agreement, "closure" or "closed" consists of
Niku providing an update or new documentation to the Software which eliminates
the nonconformance or provides a work-around solution which enables the end user
to easily avoid the nonconformance.

        4. EXCLUSIONS. The maintenance services to be provided by Niku under
this Agreement do not include: (a) repair, replacement, correction or adjustment
of any malfunction caused by: (i) Customer's failure to perform normal
preventative maintenance in accordance with the recommendations of Niku; (ii)
modification or repair of the Software by anyone other than Niku; (iii)
accident, catastrophe, abuse, misuse or operator error; or (iv) Customer's
failure to maintain a computing environment in accordance with Niku's
specifications; (b) new versions, options or applications for which Niku
establishes a separate license fee; (c) any expendable items, such as tape
cartridges, magnetic media, and similar items or supplies; or (d) any software
design, development, installation, implementation, or consulting services.

        5. CUSTOMER DUTIES. Throughout the term of this Agreement, Customer
will: (a) at Customer's expense, maintain a modem and associated dial-up
telephone equipment as specified by Niku so as to enable Niku to gain remote
access to the computer system(s) on which the Software is installed at
Customer's installation site for diagnostic, error correction, and software
downloading purposes; (b) cooperate with Niku in identifying the cause of any
claimed failure of the Software to substantially conform to or perform
substantially in accordance with Niku's published user documentation, including
without limitation providing Niku with such documentation and other information
concerning any such claimed failure as Niku may reasonably request; and (c)
allow Niku reasonably free remote and on-site access to the Software and
Customer's associated equipment for the purpose of performing services under
this Agreement.

        6. SERVICE HOURS. The support described in section 2(c) of this
Agreement will be provided by Niku to Customer by telephone, facsimile or email
during the business hours of 8:00 a. m. to 5:00 US pacific time, Monday through
Friday, excluding public holidays for Niku.

        7. PROPRIETARY RIGHTS AND LICENSE. All software furnished to Customer by
Niku under this Agreement, including all corrections, updates, improvements,
modifications and new versions of Software which may be furnished to Customer by
Niku under this Agreement will be

                               Exhibit C, Page 2
<PAGE>   14

considered software licensed to Customer by Niku in accordance with the terms
and conditions of the license agreement between Customer and Niku (the "License
Agreement"), as applicable.

        8. LIMITED WARRANT. Niku warrants that, throughout the term of this
Agreement, the Software will substantially conform to and perform substantially
in accordance with Niku's published user documentation, and Niku will endeavor
to correct any failure of the Licensed Software to so conform or perform,
provided that such failure to so conform or perform is not, in Niku's reasonable
opinion, a result of any modification of or damage to the software or its
operating environment or of Customer's failure to operate the software in the
proper hardware and software environment. ALL OTHER WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY
PARTICULAR PURPOSE, ARE SPECIFICALLY EXCLUDED AND DISCLAIMED. NIKU DOES NOT
WARRANT THAT THE SOFTWARE WILL MEET CUSTOMER'S REQUIREMENTS, THAT THE OPERATION
OF THE SOFTWARE WILL BE UNINTERRUPTED OR ERROR FREE, OR THAT ALL FAILURES OF THE
SOFTWARE TO SUBSTANTIALLY CONFORM TO OR PERFORM SUBSTANTIALLY IN ACCORDANCE WITH
NIKU'S PUBLISHED USER DOCUMENTATION WILL BE CORRECTED.

        9. LIMITATION OF REMEDIES AND DAMAGES.

        a. CUSTOMER'S SOLE AND EXCLUSIVE REMEDY FOR BREACH OF THE FOREGOING
WARRANTY SHALL BE THAT: (A) NIKU WILL ENDEAVOR TO CORRECT WITHIN A REASONABLE
TIME ANY REPORTED FAILURE OF THE SOFTWARE TO SUBSTANTIALLY CONFORM TO OR PERFORM
SUBSTANTIALLY IN ACCORDANCE WITH NIKU'S PUBLISHED USER DOCUMENTATION, OR (B) IN
THE EVENT THAT NIKU SHALL FAIL OR BE UNABLE FOR ANY REASON TO CORRECT ANY
FAILURE OF THE SOFTWARE TO SUBSTANTIALLY CONFORM TO OR PERFORM SUBSTANTIALLY IN
ACCORDANCE WITH NIKU'S PUBLISHED USER DOCUMENTATION, CUSTOMER MAY TERMINATE THIS
AGREEMENT, AND NIKU WILL REFUND TO CUSTOMER THE FULL AMOUNT OF THE MAINTENANCE
FEES ALREADY PAID WITH RESPECT TO SUCH SOFTWARE FOR SERVICE BEYOND THE EFFECTIVE
DATE OF TERMINATION, PRORATED ON A DAILY BASIS.

        b. IN NO EVENT SHALL NIKU BE LIABLE TO CUSTOMER FOR INCIDENTAL,
CONSEQUENTIAL, INDIRECT OR SPECIAL DAMAGES, EVEN IF ADVISED OF THE POTENTIAL OF
SUCH DAMAGES. NIKU'S ENTIRE LIABILITY TO CUSTOMER, REGARDLESS OF THE FORM OF
ACTION, SHALL BE LIMITED TO THE FEES PAID BY CUSTOMER TO NIKU PURSUANT TO THIS
AGREEMENT.

        10. PRICES, INVOICING AND PAYMENT. In addition to the maintenance fees
to be paid by Customer under this Agreement, Customer will pay (or reimburse
Niku for) all taxes (excluding taxes based on Niku's net income), all freight,
shipping and insurance costs associated with delivery of materials to Customer
under this Agreement and all travel, lodging, meal and other incidental expenses
reasonably incurred by Niku in connection with furnishing

                               Exhibit C, Page 3
<PAGE>   15

maintenance and support services to Customer under this Agreement. Software
maintenance fees are payable annually in advance. Niku will invoice Customer for
the initial twelve (12) months maintenance fees upon acceptance of the Software,
and Niku will invoice Customer for maintenance fees pertaining to each
succeeding twelve (12) month period at or about the commencement of such
period. Niku will invoice Customer for other charges permitted under this
Agreement at or about the times such charges are incurred; all such invoices
shall be paid by Customer within thirty (30) days of receipt.

        11. CHANGE IN MAINTENANCE FEES. Effective upon any twelve (12) month
anniversary of the effective date specified in paragraph 12, Niku may increase
the amount of the maintenance fees relating to the Software; provided, however,
that no such increase shall exceed fifteen percent (15%) of the amount of the
maintenance fees for the twelve (12) month period immediately preceding the
effective date of such increase.

        12. TERM AND TERMINATION. This Agreement shall become effective as of
the Effective Date and shall continue in effect for the initial term specified
above and thereafter for successive one (1) year renewal terms until terminated
as provided in this section of the Agreement. Either party may terminate this
Agreement as of the end of its initial term, or as of the end of any renewal
term, by written notice to the other party at least thirty (30) days prior to
the effective date of termination. In the event that Customer's license to use
the Software is terminated by Niku or Customer pursuant to the above described
License Agreement, this Agreement shall also terminate as to such Software and
Niku will refund to Customer the amount of any maintenance fees already paid
with respect to such software for service beyond the effective date of
termination, prorated on a daily basis.

        13. MISCELLANEOUS TERMS AND CONDITIONS. This Agreement shall be
construed in accordance with and governed by the laws of the State of
California, without regard to its conflicts of law rules. Niku's failure to
enforce at any time any of the provisions of this Agreement or any right with
respect thereto, shall in no way be construed to be a waiver of such provision
or right, or in any way to affect the validity of this Agreement. This Agreement
shall be binding upon and inure to the benefit of the successors and permitted
assigns of the Customer and Niku. This Agreement hereto shall be modified only
by an instrument in writing signed by the parties. All notices, requests,
consents, and other communications hereunder must be in writing, and will be
deemed to have been properly given when actually received by the party to whom
sent. The provisions of this Agreement are severable, and if any provision is
held invalid or unenforceable in whole or in part in any jurisdiction, then such
invalidity or unenforceability will affect only such provision or part thereof
in such jurisdiction, and will not in any manner affect the provision in any
other jurisdiction, or any other provision in this Agreement in any other
jurisdiction. This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof, and supersedes all previous
communications, representations, understandings, and agreements, either oral or.
written, between the parties or any official or representative thereof.

                               Exhibit C, Page 4
<PAGE>   16

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

NIKU CORPORATION                        [NAME OF CUSTOMER HERE]

By:
   ---------------------------------    ----------------------------------------
               (Signature)                             (Signature)

------------------------------------    ----------------------------------------
(Typed or Printed Name)                 (Typed or Printed Name)

Title:                                  Title:
      ------------------------------          ----------------------------------

                               Exhibit C, Page 5
<PAGE>   17

                           FIRST ADDENDUM TO SOFTWARE

                         LICENSE AND SERVICES AGREEMENT

        This First Addendum (the "Addendum") to the Software License and
Services Agreement ("Agreement") dated December 22, 1998 by and between Niku
Corporation, a Delaware corporation with offices at 955 Charter Street, Redwood
City, California 94063 ("Niku"), and Sybase, Inc., a Delaware corporation, with
offices at 6475 Christie Ave., Emeryville, California 94608 ("Licensee"), is
made effective March 29, 1999.

1.      DEFINITIONS. Except as specifically modified below, the capitalized
        terms defined in the Agreement shall have the same meaning when used in
        this Addendum.

        1.1     "Software" means Niku(TM) for IT Consulting, Version 2.0 and all
                prior versions thereof.

2.      DELIVERY. Niku will deliver the Software to Licensee as soon as
        practicable after execution of this Addendum but no later than twenty
        (20) days thereafter.

3.      LICENSE FEE. Licensee will make a final payment of the license fees for
        the Software (the "License Fee") in the amount of TWO HUNDRED THOUSAND
        AND NO/100 DOLLARS ($200,000.00) within thirty (30) days after delivery
        by Niku of the Software. This amount is in addition to the initial
        License Fee of $150,000 referenced in Exhibit A of the Agreement paid
        for a previous version of the Software.

4.      WARRANTY. The express warranty clause set forth in Paragraph Seven (7)
        of Exhibit A to the Agreement will apply to the Software delivered
        pursuant to this Addendum (Version 2.0).

5.      APPLICABILITY. Except as specifically modified and supplement by this
        Addendum, the Agreement will remain in full force and effect. In
        particular, the parties acknowledge their agreement that Niku deliver
        the Software and Sybase pay the License Fee, notwithstanding any delay
        in entering into a Statement of Work under the Agreement.

NIKU CORPORATION                        SYBASE, INC.

By: /s/ KEN JOHNSON                     By: /s/ RICHARD LABARBERA
   ---------------------------------       -------------------------------------
Name: Ken Johnson                       Name:  Rich N. LaBarbera
Title: Vice President, Sales            Title: Sr. Vice President and
                                               Gen. Manager,
                                               Enterprise Solutions Division

<PAGE>   18

                           SECOND ADDENDUM TO SOFTWARE

                         LICENSE AND SERVICES AGREEMENT

        This Second Addendum (the "Addendum") to the Software License and
Services Agreement dated December 22,1998 (as amended by the First Addendum to
the Software License and Services Agreement dated March 29,1999, the
"Agreement") by and between Niku Corporation, a Delaware corporation with
offices at 305 Main Street, Redwood City, California 94063 ("Niku"), and Sybase,
Inc., a Delaware corporation, with offices at 6475 Christie Ave., Emeryville,
California 94608 ("Licensee") is made effective September 16,1999.

1.      DEFINITIONS. Except as specifically modified below, the capitalized
        terms defined in the Agreement shall have the same meaning when used in
        this Addendum.

        1.1     "Software" means Niku(TM) for IT Consulting, Version 3.0 and all
                prior versions thereof.

2.      DELIVERY. Niku will deliver the Software to Licensee as soon as
        practicable after execution of this Addendum but no later than twenty
        (20) days thereafter.

3.      LICENSE FEE. Licensee will pay Niku FOUR HUNDRED THOUSAND DOLLARS
        ($400,000) for the Software (the "License Fee") as follows: (a) $200,000
        will be paid on a net 30 days basis from October 1, 1999; and (b)
        $200,000 will be made on a net 90 days basis from January 1, 2000. This
        amount is in addition to any previous license fees referenced in the
        Agreement for previous versions of the Software and constitutes the
        final license fee payments for the Software under the Agreement.

4.      WARRANTY. The express warranty clause set forth in Paragraph Seven (7)
        of Exhibit A to the Agreement will apply to the Software delivered
        pursuant to this Addendum (Version 3.0).

5.      APPLICABILITY. Except as specifically modified and supplement by this
        Addendum, the Agreement will remain in full force and effect. In
        particular, the parties acknowledge their agreement that Niku deliver
        the Software and Sybase pay the License Fee, notwithstanding any delay
        in entering into a Statement of Work under the Agreement.

Niku Corporation                        Sybase, Inc.

By: /S/ KEN JOHNSON                     By: /s/ RICHARD LABARBERA
   ---------------------------------       -------------------------------------
   Name:  Ken Johnson                      Name:  Rich N. LaBarbera
   Title: Sr. Vice President, Sales        Title: Sr. Vice President and Gen.
                                                  Manager, Enterprise Solutions
                                                  Division<PAGE>   1

                                                                   EXHIBIT 10.12

                           SOFTWARE LICENSE AGREEMENT

        THIS SOFTWARE LICENSE AGREEMENT, is made between Sybase, Inc., a
Delaware corporation, and its majority owned direct and indirect subsidiaries
(collectively, "Sybase"), with offices at 6475 Christie Avenue, Emeryville, CA
94608; and Niku Corporation ("Customer") with offices at 955 Charter Street,
Redwood City, CA 94063.

1.      DEFINITIONS

"Agreement" - this Software License Agreement, the Exhibit A and any other
addenda attached hereto, each supplemental Exhibit A signed by both parties, and
each Purchase Order. "Documentation" - installation instructions and user
manuals. "MACHINE" - a hardware system with any number of processors running a
single copy of the operating system on which the Sybase software is running;
except in the case of SYBASE MPP(TM), in which case a Machine is a cluster of
Machines linked together through a high speed interconnect. "NAMED USER" - a
specific named person licensed to Use a Program. "OPERATING SYSTEM SOFTWARE" -
the operating system software listed in the Exhibit A or Purchase Order
applicable to the relevant copy of the Program. "PRICE LIST" - Sybase's then
current price list for the country in which the Program is to be Used. "Primary
Copy" - a licensed copy of the Program provided by Sybase, which may have been
provided initially as a trial copy. "PROGRAM" - the object code version of the
software product(s) listed in the Exhibit A or Purchase Order, together with all
data files included by Sybase. "PURCHASE ORDER" - a purchase order or other
purchase authorizing document issued by Customer for Sybase products and/or
services and accepted by Sybase, as confirmed by a Sybase invoice. "SEAT"
specific identifiable unique accessor of information such as a terminal, PC,
single user workstation or real time device. "SECONDARY COPY" - a licensed copy
of the Program reproduced by Customer from the Primary Copy. "USE" to lead,
utilize, or store the Program.

2.      LICENSE

        2.1 Sybase grants to Customer, solely for customer's own internal
business purposes, a non-exclusive, nontransferable, perpetual, fully paid
license to Use each Primary Copy (and made and Use each Secondary Copy) on one
Machine running the Operating System Software at the site specified on the
Exhibit A or Purchase Order. If such license is designated as a NETWORKED
LICENSE, each copy of the Program may be accessed by any and all Seats or Named
Users that are licensed to access such Program subject to the following
restrictions: (i) Workplace Seats and Workplace Named Users licensed to access a
particular Program may only access the workplace level of such Program, and (ii)
Enterprise Seats and Enterprise Named Users licensed to access a particular
Program may access the Workplace and Enterprise levels of such Program.
Accordingly, Seats and Named Users in a Networked Licensed are not tied to a
particular copy of the Program. Use of software or hardware which reduces the
number of Seats directly accessing the Programs (sometime called "multiplexing"
or "pooling") does not reduce the number of Seats required to be licensed, but
rather the number of licensed Seats must be equal to the number of distinct
inputs to the multiplexing software or hardware. If the license is designated as
a STANDALONE NAMED USER LICENSE, the Program may be Used only by one

<PAGE>   2

Named User, but such Named User may copy and Use such Program on more than one
Machine. If the license is designated as a STANDALONE SEAT LICENSE, the copy of
the Program may only be accessed by he Machine on which it resides. A license
for a copy of a Program will allow Customer to Use the indicated version or
instead any earlier version for which Customer already has a Primary Copy. If
Customer's Support plan entitles Customer to updates (i.e., new version of the
Program), the license shall also extend to each new version provided. If a
Run-Time Program is licensed, the Program may only be Used to run Customer's
applications but cannot be Used to (i) develop or modify applications, or (ii)
perform other programming tasks.

        2.2 Customer may make a reasonable number of copies of each Program
exclusively for inactive back-up or archival purposes.

        2.3 The Program and all copies (in whole or part) shall remain the
exclusive property of Sybase and its licensors. Customer shall not modify,
reverse engineer, reverse assembly or reverse compile any Program or part
thereof, except Customer may modify data file portions of the Program as
described in the user manuals. Customer shall not Use the Program in a service
bureau or time-sharing arrangement nor distribute, rent, lease or transfer the
Program to any third party.

        2.4 Upon Sybase's receipt of Customer's Purchase Order, Sybase shall
deliver the Primary Copy and one set of Documentation to Customer. Customer, at
its own expense, shall be responsible for installing the Program and all new
versions thereof.

        2.5 For its own use, Customer may make copies of the Documentation
delivered by Sybase or nay purchase copies at the prices in the Price List.

        2.6 No more often than annually, Sybase may, upon reasonable notice and
at its expense, direct an accounting firm acceptable to Customer to audit during
business hours the number of copies of the Program in Use and the number of
Seats and/or Named Users accessing the Programs. The auditors shall protect the
confidentiality of Customer's information and abide by Customer's reasonable
security regulations. If the use of the Program is found to be greater than that
contracted for, Customer will be invoiced for the additional copies, Seats,
Named Users or processors at the prices in the Price List.

        2.7 Subject to acceptance by Sybase, consulting or educational services
provided to Customer will be subject to the terms of this Agreement unless
otherwise agreed in writing. Educational services are provided at Sybase
designated facilities.

3.      PAYMENT

        3.1 Payment is due to Sybase or its assigns within 30 calendar days
after the invoice date. Customer will pay all applicable shipping charges and
sales, use, personal property or similar taxes, tariffs or governmental charges,
exclusive of Sybase's income and corporate franchise taxes. Customer will
reimburse Sybase for all reasonable costs incurred (including reasonable
attorneys' fees) in collecting past due amounts.

        3.2 Except with respect to specific Programs designated by Sybase,
Customer must purchase a technical support plan ("Support") for the first year
for all Programs licensed.

                                       2
<PAGE>   3

Support commences on the date the Primary Copy is shipped to Customer or on the
date invoiced for Secondary Copies ("the Support Date"). Fees for annual Support
("Support Fees") shall be paid in advance. Unless Support has been purchased for
such copies or new versions have been separately licensed, no new versions of
the Program will be provided to Customer for the Primary Copy and no new
versions may be copied by Customer to update Secondary Copies. Support may be
extended for one year periods on the anniversary of each Support Date at the
Support Fees shown in the Price List for as long as Sybase offers Support.
Customer may reinstate lapsed support for any then currently supported Program
by paying all Support Fees in arrears and all time and travel expenses incurred
in updating the Program to the current version.

4.      SUPPORT AND TECHNICAL SERVICES

Provided Customer has paid applicable Support Fees, Sybase shall support the
Program as follows. Customer shall designate as technical support contacts that
number of Customer employees as are permitted under the level of Support
purchased. Each contact may telephone Sybase for problem resolution during
Sybase's published support hours corresponding to the level of Support Fees
paid. Upon notice from a contact of a Program problem (which problem can be
reproduced at a Sybase support facility or via remote access to Customer's
facility), Sybase shall use reasonable efforts to correct or circumvent the
problem. Sybase reserves the right to make Program corrections only to the most
current generally available version. For 12 months after the introduction of a
new generally available enhancement release, Sybase will use reasonable efforts
to support the previously released version of such Program. A Program may be
transferred to another site or operating system software only upon written
notice to Sybase and subject to Sybase's transfer policies and fees then in
effect. A Program may be transferred without cost or notice from one Machine to
another at the same site if the second Machine runs the same Operation System
Software as the first Machine. Sybase shall have no obligation to support the
program (i) for Use on any computer system running other than the Operating
System Software, or (ii) if Customer modifies the Program in breach of this
Agreement. Only those versions of different cooperating Programs specified in
the Documentation will execute correctly together on a CPU or in a network.
Sybase has no obligation to modify any version of the Program to run with new
versions of the Operating Systems Software. If Customer purchases Support for
any Program in Use on a Machine or in a network, it must purchase the same level
of Support for all copies of such Program on such Machine or network.

5.      CONFIDENTIALITY

        5.1 "Confidential Information," which includes the Program (including
methods or concepts utilized therein) and all information identified by the
disclosing party as proprietary or confidential, shall remain the sole property
of the disclosing party and shall not be disclosed to any third party without
the express written consent of the disclosing party (except solely for
Customer's internal business needs, to consultants who are bound by a written
agreement with Customer to maintain the confidentiality of such Confidential
Information in a manner consistent with this Agreement). Except with respect to
the Program, items will not be deemed Confidential Information if (i) available
to the public other than by a breach of an agreement with Sybase; (ii)
rightfully received from a third party not in breach of any obligation of
confidentiality; (iii) independently developed by one party without access to
the Confidential Information of the other; (iv) known to the recipient at the
time of disclosure; or (v) produced in

                                       3
<PAGE>   4

compliance with applicable law or a court order, provided the other party is
given reasonable notice of such law or order. A copyright notice on a Program
does not, by itself, constitute evidence of publication or public disclosure.
Customer shall not release the results of any benchmark of the Programs to any
third party without the prior written approval of Sybase for each such release.

6.      INFRINGEMENT INDEMNITY

Sybase at its own expense shall (i) defend, or at its option settle, any claim
or suit against customer on the basis of infringement of any trademark,
copyright, trade secret or United States patent ("Intellectual Property Rights")
by the Program or Use thereof, and (ii) pay any final judgment entered against
Customer on such issue or any settlement thereof, provided (a) Sybase has sole
control of the defense and/or settlement; (b) Customer notifies Sybase promptly
in writing of each such claim or suit and gives Sybase all information known to
Customer relating thereto, and (c) Customer cooperates with Sybase in the
settlement and/or defense. (Customer shall be reimbursed for all reasonable
out-of-pocket expenses incurred in providing any cooperation requested by
Sybase.) If all or any part of the Program is, or in the opinion of Sybase may
become, the subject of any claim or suit for infringement of any Intellectual
Property Rights, Sybase may, and in the event of any adjudication that the
Program or any part thereof does infringe or if the Use of the Program or any
part thereof is enjoined, Sybase shall, at its expense do one of the following
things: (1) procure for Customer the right to Use the Program or the affected
part thereof; (2) replace the Program or affected part with other suitable
programs; (3) modify the Program or affected part to make it noninfringing; or
(4) if none of the foregoing remedies are commercially feasible, refund the
aggregate payments made by Customer for the Program or the affected part
thereof. Sybase shall have no obligations under this Section 6 to the extent a
claim is based upon (A) use of any version of the Program other than a current,
unaltered version, if infringement would have been avoided by a current,
unaltered version; or (B) combination, operation or use of the Program with
software and/or hardware not delivered by Sybase if such infringement could have
been avoided by combination, operation or use of the Program with other software
and/or hardware. This Section 6 states the entire liability of Sybase and the
exclusive remedy of Customer with respect to any alleged infringement by the
Program or any part thereof.

7.      PROPRIETARY NOTICES

The Programs and related documentation are proprietary and protected by
copyright and/or trade secret law. All proprietary notices incorporated in or
fixed to a Program or documentation shall be duplicated by Customer on all
copies or extracts thereof and shall not be altered, removed or obliterated.

8.      WARRANTY/LIMITATIONS ON LIABILITY

        8.1 For one year form the date of shipment of a version of the Program
to Customer, Sybase warrants that the version when property Used will operate in
all material respects in conformity with the Documentation for such version, and
the Program media shall be free of defects. Customer's sole remedy in the even
of nonconformity of a Program at Sybase's option

                                       4
<PAGE>   5

will be replacement of the defective Programs or a refund of the license fees
paid for the affected Program.

        8.2 NO OTHER WARRANTY, EXPRESS OR IMPLIED, IS MADE REGARDING THE
PROGRAM, GOODS OR SERVICES TO BE SUPPLIED HEREUNDER, INCLUDING WITHOUT
LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. NO WARRANTY IS MADE REGARDING THE RESULTS OF ANY PROGRAM OR SERVICES OR
THAT ALL ERRORS IN THE PROGRAM WILL BE CORRECTED, OR THAT THE PROGRAM'S
FUNCTIONALITY WILL MEET CUSTOMER'S REQUIREMENTS. CUSTOMER ACKNOWLEDGES ITS
RESPONSIBILITY TO (I) REGULARLY BACK UP DATA MAINTAINED ON ANY COMPUTER SYSTEM
USING THE PROGRAM, AND (II) ADEQUATELY TEST PRIOR TO DEPLOYMENT EACH PRODUCTION
VERSION OF THE PROGRAM IN A CONFIGURATION WHICH REASONABLY SIMULATES CUSTOMER'S
PLANNED PRODUCTION ENVIRONMENT.

        8.3 THE TOTAL LIABILITY, IF ANY, OF SYBASE AND ITS SUBSIDIARIES,
INCLUDING BUT NOT LIMITED TO LIABILITY ARISING OUT OF CONTRACT, TORT, BREACH OR
WARRANTY, CLAIMS BY THIRD PARTIES OR OTHERWISE, SHALL NOT IN ANY EVENT EXCEED
THE LICENSE FEES PAID BY CUSTOMER FOR THE PROGRAM(S) WHICH GIVE RISE TO THE
CLAIM. SYBASE'S LICENSORS SHALL NOT BE LIABLE FOR DIRECT DAMAGE HEREUNDER, AND
NEITHER SYBASE NOR ANY OF ITS SUBSIDIARIES OR LICENSORS SHALL BE LIABLE FOR LOSS
OF PROFITS, LOSS OR INACCURACY OF DATA, OR INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, EVEN IS SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.

9.      TERMINATION

Sybase may terminate a license if Customer has not paid the license fees
therefore within 15 calendar days after written notice that payment is past due.
Either party may terminate this Agreement upon any other material breach of this
Agreement by the other party, which if remediable, has not been corrected within
60 calendar days after written notice. On termination, all licenses granted
hereunder shall terminate, Customer shall cease Using the Program and
Documentation (whether or not modified or merged into other materials) and
Customer shall certify in writing to Sybase that all copies (in any form or
media) have been destroyed or returned to Sybase. Termination shall not relieve
Customer from paying all fees accruing prior to termination and shall not limit
either party form pursuing any other available remedies. Sections 5, 6, 8.2,
8.3, 9 and 10.3 shall survive termination of this Agreement.

10.     GENERAL

        10.1 Neither this Agreement nor any license hereunder may be assigned
(whether by operation of law or otherwise) by Customer without Sybase's prior
written consent, not to be unreasonably withheld.

                                       5
<PAGE>   6

         10.2 This Agreement is the entire agreement of the parties and
supersedes all previous and contemporaneous communications, representations, or
agreements regarding the subject matter hereof. A facsimile of a signed copy of
this Agreement received from Customer may be relied upon as an original and if
there is any inconsistency between such facsimile and a subsequently received
hard copy, the facsimile shall prevail. This Agreement may be modified only in a
writing signed by both parties. Purchase Orders shall be binding as to: the
products and services ordered, fees therefore and the site for installation or
performance of services as set forth on the face side of or a special attachment
to the order. Other terms and preprinted terms on or attached to any Purchase
Order shall be void.

        10.3 Customer shall not transfer, directly or indirectly, any restricted
Programs or technical data received from Sybase or its subsidiaries, or the
direct product of such data, to any destination subject to export restrictions
under U.S. law, unless prior written authorization is obtained from the
appropriate U.S. agency.

        10.4 No delay or default in performance of any obligation by either
party, excepting all obligations to make payments, shall constitute a breach of
this Agreement to the extent caused by force majeure.

        10.5 All notices relating to this Agreement shall be in writing and
delivered by overnight delivery service or first class prepaid mail with return
receipt requested, to the address of such party specified above (in the case of
Sybase to the attention of its General Counsel) or the address specified by such
party in accordance with this Section.

        10.6 If this license is acquired under a U.S. Government contract, Use,
duplication or disclosure by the U.S. Government is subject to restrictions set
forth in FAR subparagraphs 52.227-19(a)-(d) for civilian agency contract and
DFARS 252.227-7013(c)(ii) for Department of Defense contracts. Sybase reserves
all unpublished rights under the United States copyright laws.

        10.7 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF
THE STATE OF CALIFORNIA EXCLUDING ITS CONFLICT OF LAWS RULES. IT SHALL NOT BE
GOVERNED BY THE UNITED NATIONS CONVENTION ON THE INTERNATIONAL SALE OF GOODS,
THE APPLICATION OF WHICH IS EXPRESSLY EXCLUDED. CUSTOMER SUBMITS TO THE
JURISDICTION OF THE STATE AND FEDERAL COURTS FOR THE COUNTY OF ALAMEDA WITHIN
THE STATE OF CALIFORNIA. If any provision of this Agreement is held to be
unenforceable, the parties shall substitute for the affected provision an
enforceable provision which approximates the intent and economic effect of the
affected provision. The failure or delay by either party to enforce any term of
this Agreement shall not be deemed a waiver of such term.

                                       6
<PAGE>   7

The parties have caused this Agreement to be executed by their respective
authorized representatives.

SYBASE, INC.:

By:
   ------------------------------------
         (Authorized Signature)

Name:
     ----------------------------------

Title:
      ---------------------------------

Date:
     ----------------------------------

CUSTOMER:

By:
   ------------------------------------
         (Authorized Signature)

Name:
     ----------------------------------

Title:
      ---------------------------------

Date:
     ----------------------------------

                                       7
<PAGE>   8

                                       To SYBASE Software License Agreement

Prepared for: Niku
             -------------------------------------------------
Contact:      Ken Johnson
             -------------------------------------------------
Site Address: 955 Charter Street
             -------------------------------------------------
              Redwood City, CA 94063
             -------------------------------------------------

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

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  Catalog                                                    License                          Unit
  Number                  Program Description                  Type     Platform/OS    P/S    Count    Media
-------------------------------------------------------------------------------------------------------------
<S>          <C>                                             <C>        <C>            <C>    <C>      <C>
   94160     Internet Access License - CPU Fee                  IC        Solaris       P       4
-------------------------------------------------------------------------------------------------------------
   13839     Adaptive Server Enterprise - Server                SR        Solaris       P       2
-------------------------------------------------------------------------------------------------------------
   10500     JConnect                                           SR        Solaris       P       2
-------------------------------------------------------------------------------------------------------------
   94283     Internet Access License - CPU Fee                  IC        Solaris       P       2
-------------------------------------------------------------------------------------------------------------
   28216     Adaptive Server Enterprise - Server                SR        Solaris       P       1
-------------------------------------------------------------------------------------------------------------
   13839     Adaptive Server Enterprise - Seats                 SS        Solaris       S       50
-------------------------------------------------------------------------------------------------------------

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

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

-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
  Catalog                                          Price               Net Unit   Extended
  Number                  Program Description      per Unit  Discount   Price      Price     Support Fees
------------------------------------------------------------------------------------------------------------
<S>          <C>                                   <C>       <C>       <C>        <C>        <C>
   94160     Internet Access License - CPU Fee      25,000     20%       $20,000   $80,000     $19,200
------------------------------------------------------------------------------------------------------------
   13839     Adaptive Server Enterprise - Server     3,995     20%       $ 3,196   $ 6,392     $ 1,536
------------------------------------------------------------------------------------------------------------
   10500     JConnect                                1,995     20%       $ 1,596   $ 3,192     $   768
------------------------------------------------------------------------------------------------------------
   94283     Internet Access License - CPU Fee      12,700     20%       $10,160   $20,320     $ 4,884
------------------------------------------------------------------------------------------------------------
   28216     Adaptive Server Enterprise - Server       995     20%       $   796   $   796     $   456
------------------------------------------------------------------------------------------------------------
   13839     Adaptive Server Enterprise - Seats        795     20%       $   636   $31,800     $ 7,800
------------------------------------------------------------------------------------------------------------

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

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

------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                   <C>
License Model:        Networked
                                 --------------------

Support Program:      Extended
                                 --------------------

Payment Terms:        Net 30 days
                                 --------------------

FOB:                  Destination
                                 --------------------
</TABLE>

<TABLE>
<S>                                 <C>
            License Fees:           $142,500
                                    --------
            Support Fees:           $ 34,644

          Education Fees:
         Consulting Fees:
                                    --------
                  Total:            $177,144
                                    --------
     less other discount:
                                    --------
             Grand Total:           $177,144
                                    --------
                Currency:                USD
</TABLE>

Media and documentation shipped for Primary Copies only.

Secondary Copies are a right to create a copy of the Program from the Primary
Copy.

E/W/O = E is Enterprise, W is Workplace, and O is Other P/S = P is Primary Copy
and S is Secondary Copy

License Types: Server (SR), Seat (ST), Concurrent User (CU), Standalone Seat
(SS), Incremental CPU (IC).

The above Sybase Programs are licensed subject to the terms of the Software
License Agreement between the parties referenced above or if no such agreement
exists the Sybase license agreement included with the Program package. Third
party products supplied with a license from the supplier are provided subject to
the terms of such supplier license. Any support or warranty service for such
third party products is provided by the supplier. Any additional Sybase products
not listed above and supplied to the Customer without additional charges are
subject to the applicable Sybase license agreement included with such product.

PURCHASE ORDER INFORMATION

By signing this Exhibit A, customer agrees to be bound by this Exhibit A and the
referenced license agreement and customer authorized Sybase to invoice customer,
under net 30 day terms from the date of the Exhibit A, the amounts for the
Programs and services listed above, plus applicable tax, VAT and delivery
charges.

      Tax Exempt No.
                    ----------------------------------------

       P.O. Number:
                    ----------------------------------------
                               (if available)

        SYBASE, INC.

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

               Name:
                    ----------------------------------------

              Title:
                    ----------------------------------------

              Billing Address: Niku Corporation
                              ----------------------------------------
                               955 Charter Street
                              ----------------------------------------
                               Redwood City, CA 94063
                              ----------------------------------------

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

             Name of Customer: Niku
                              ----------------------------------------

Authorized Customer Signature: /s/ KENNETH JOHNSON
                              ----------------------------------------

          Customer Name/Title: Kenneth L. Johnson - VP Sales
                              ----------------------------------------

                  Date Signed: 3/29/99
                              ----------------------------------------

                                       8
<PAGE>   9

                        INTERNET ACCESS LICENSE ADDENDUM
                         (EXTERNAL USE VIA THE INTERNET)

         This INTERNET ACCESS LICENSE ADDENDUM is made as of ________________,
1999___, and amends that certain Software License Agreement dated
______________, 19__ (the "Agreement") between Sybase, Inc. or Sybase Canada
Limited ("Sybase") and ______________________________________________________
("Customer"). Capitalized terms not otherwise defined in this Addendum shall
have the same meanings set forth in the Agreement.

         1. Each copy of a Program licensed by Customer for which a
corresponding Internet Access License has been purchased (together, the
"Internet Products") may be accessed by "External Internet Seats" as outlined in
Section 2 below, provided that Customer has paid the applicable CPU fees for
each processor on the Workplace, Enterprise or Super Enterprise level Machine on
which such Internet Products are used.

         2. Customer may use the Internet Products in connection with an
Internet website, and may allow an unlimited number of External Internet Seats
to indirectly access such Internet Products. "External Internet Seats" shall
mean Seats which access the Internet Products via the Internet; provided that
the person at such Seat is not acting in the capacity of an employee, agent or
independent contractor of Customer. External Internet Seats may query the
Internet Products database and update such database to the extent allowed by
Customer's application, but may not use the Internet Products to develop or
modify applications or perform other programming tasks. The limited use
authorized above shall not be deemed to violate the restrictions set forth in
the last sentence of Section 2.3 of the Agreement.

         3. Nothing in this Addendum authorizes Customer to use the Internet
Products in connection with a website hosted by Customer on behalf of third
parties. In addition, this Addendum does not cover intranet usage or other
internal usage and Customer must acquire the necessary Seat licenses for all
internal usage of the Internet Products in accordance with the Agreement.

Except as amended above, the Agreement shall remain in full force and effect.

SYBASE, INC.                            CUSTOMER:
(or Sybase Canada Limited,
if applicable)

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

Name:                                   Name:
     ------------------------------          -----------------------------------

Title:                                  Title:
      -----------------------------           ----------------------------------

                                       9

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