EXHIBIT 10.6

     
Notice of Grant of Stock Option Agreement
  webMethods, Inc.

  Tax Id.: 54-1807654
 
   

  Option Number:

  Participant Id:

This Notice of Grant sets forth certain information regarding the Option for
Shares of Incentive Stock granted to you, the Participant named above, under the
webMethods, Inc. Amended and Restated Stock Option Plan, as amended (the
“Plan”), pursuant to the terms and conditions of the Stock Option Agreement (the
“Agreement”) between webMethods, Inc. (the “Corporation”) and you distributed
with this Notice of Grant. This Notice of Grant is an integral part of the
Agreement, which, with the Plan, is incorporated by reference into the
Agreement. Capitalized terms not defined in this Notice of Grant have the
meanings ascribed to them in the Agreement. Dates are in mm/dd/yyyy format, and
currency is in US Dollars.

Effective              (the Option Grant Date), you have been granted a stock
option to buy             shares of Incentive Stock at $          per share (the
Exercise Price per share). The total Exercise Price of the Incentive Stock
covered by this Option is $          .

Vesting Schedule: Based on your continuous employment for the Corporation or any
Subsidiary (or Parent, if any), the Option will become vested in increments as
shown below. Vesting shall cease upon your termination of employment. For
purposes of this Option, your Vesting Start Date is <VestStart> and your option
will expire at 5:00 pm, local time at the Corporation’s headquarters office, on
<Expiration>.

                Date This Increment Number of Shares

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  Vest Type

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  Is Fully Vested

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This Option is [is not] intended to qualify as an “incentive stock option”
within the meaning of Section 422 of the U.S. Internal Revenue Code of 1986, as
amended, or any successor provision.

BY SIGNING THIS NOTICE OF GRANT, PARTICIPANT (A) ACKNOWLEDGES READING AND
UNDERSTANDING THE AGREEMENT AND THE PLAN, (B) AGREES TO BE BOUND BY ALL
PROVISIONS OF THE AGREEMENT AND (C) AGREES THAT THIS NOTICE OF GRANT, TOGETHER
WITH THE AGREEMENT, SHALL GOVERN THE TERMS AND CONDITIONS OF THE OPTION, THE
SHARES AND THE OTHER SUBJECT MATTER OF THE AGREEMENT, SUBJECT TO THE PROVISIONS
OF THE PLAN. IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THIS NOTICE OF
GRANT AND THE AGREEMENT, THE AGREEMENT SHALL CONTROL.

IF YOU DO NOT RETURN TO THE CORPORATION SIGNED COPIES OF THIS NOTICE OF GRANT
AND THE AGREEMENT BY              (THE “RETURN DATE”) THIS OPTION WILL
AUTOMATICALLY EXPIRE AS OF THE DAY FOLLOWING THE RETURN DATE.

IN WITNESS WHEREOF, the Corporation and Participant have duly executed this
Notice of Grant to Stock Option Agreement as of the Option Grant Date.

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webMethods, Inc.

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Authorized Officer
 

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Date: _______________________
  Time: _______________________