Document:

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                                                                     Exhibit 4.2

                  SERIES F PREFERRED STOCK PURCHASE AGREEMENT

     This SERIES F PREFERRED STOCK PURCHASE AGREEMENT (this "Agreement") is made
                                                             ---------
and entered into as of May 3, 2000, by and among Extricity, Inc., a California
corporation (the "Company"), and the parties listed on the Schedule of Investors
                  -------
attached to this Agreement as Exhibit A (each hereinafter individually referred
                              ---------
to as an "Investor" and collectively referred to as the "Investors").
          --------                                       ---------

                                   RECITALS
                                   --------

     WHEREAS, the Company desires to sell to the Investors, and the Investors
desire to purchase from the Company, shares of the Company's Series F Preferred
Stock on the terms and conditions set forth in this Agreement;

     NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

     1.   Agreement to Purchase and Sell Stock.
          ------------------------------------

          1.1  Authorization.  As of the Closing (as defined below) the Company
               -------------
will have authorized the issuance, pursuant to the terms and conditions of this
Agreement, of up to 7,751,938 shares of the Company's Series F Preferred Stock,
no par value (the "Series F Stock") having the rights, preferences, privileges
                   --------------
and restrictions set forth in the Amended and Restated Articles of Incorporation
of the Company attached to this Agreement as Exhibit B (the "Restated
                                             ---------       --------
Articles").
--------

          1.2  Agreement to Purchase and Sell.  The Company agrees to sell to
               ------------------------------
each Investor at the Closing, and each Investor agrees severally and not
jointly, to purchase from the Company at the Closing, the number of shares of
Series F Stock set forth beside such Investor's name on Exhibit A, at a price of
                                                        ---------
$6.45 per share.  The shares of Series F Stock purchased and sold pursuant to
this Agreement will be collectively hereinafter referred to as the "Purchased
                                                                    ---------
Shares" and the shares of Common Stock issuable upon conversion of the Purchased
------
Shares will be collectively hereinafter referred to as the "Conversion Shares".
                                                            -----------------

     2.   Closing.
          -------

          2.1  The Closing.  The purchase and sale of the Purchased Shares will
               -----------
take place at the offices of Gray Cary Ware & Freidenrich LLP, 400 Hamilton
Avenue, Palo Alto, CA 94301-1825, at 10:00 a.m. Pacific Time, on May 2, 2000 or
at such other time and place as the Company and the Investors who have agreed to
purchase at least a majority of the Purchased Shares mutually agree upon (which
time and place are referred to in this Agreement as the "Closing").  At the
                                                         -------
Closing, the Company will deliver to each Investor a certificate representing
the number of Purchased Shares that such Investor has agreed to purchase
hereunder against delivery to the Company by such Investor of the full purchase
price of such Purchased Shares, paid by (i) a check payable to the Company's
order, (ii) wire transfer of funds to the Company, (iii) cancellation of
indebtedness of the Company to such Investor, or (iv) any combination of the
foregoing.

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          2.2  Additional Closing(s)
               ---------------------

               (a)  Conditions of Additional Closing(s).  At any time and from
                    -----------------------------------
 time to time during the ninety (90) day period immediately following the
Closing (the "Additional Closing Period"), the Company may, at one or more
              -------------------------
additional closings (each an "Additional Closing"), without obtaining the
                              ------------------
signature, consent or permission of any of the Investors, offer and sell to
other investors ("New Investors"), at a price of $6.45, up to that number of
                  -------------
shares of Series F Stock that is equal to 7,751,938 shares of Series F Stock
less the number of shares of Series F Stock actually issued and sold by the
Company at the Closing. New Investors may include persons or entities who are
already Investors under this Agreement.

               (b)  Additional Signatories.  The Company and the New Investors
                    ----------------------
purchasing Series F Stock at each Additional Closing will execute counterpart
signature pages to this Agreement and the Investors' Rights Agreement (as
defined in Section 5.11). Such New Investors will, upon delivery to the Company
of such signature pages, become parties to, and be bound by, this Agreement and
the Investors' Rights Agreement each to the same extent as if they had been
Investors at the Closing. The Company will not be obligated to update its
Schedule of Exceptions, Compliance Certificate or Legal Opinion for the
Additional Closing.

               (c)  Status of New Investors.  Upon completion of each Additional
                    -----------------------
Closing as provided in this Section 2, each New Investor will be deemed to be an
"Investor" for all purposes of this Agreement and the Investors' Rights
Agreement.

     3.   Representations and Warranties of the Company.  The Company hereby
          ---------------------------------------------
represents and warrants to the Investors that, except as set forth in the
Schedule of Exceptions ("Schedule of Exceptions") attached to this Agreement as
                         ----------------------
Exhibit C (which Schedule of Exceptions shall be deemed to be representations
---------
and warranties to the Investors by the Company under this Section 3), the
statements in the following paragraphs of this Section 3 are all true and
correct:

          3.1  Organization, Good Standing and Qualification.  The Company is a
               ---------------------------------------------
corporation duly organized, validly existing and in good standing under the laws
of the State of California.  The Company is qualified to do business as a
foreign corporation in each jurisdiction where failure to be so qualified would
have a material adverse effect on its financial condition, business, prospects
or operations.  The Company has the corporate power and authority to enter into
and perform this Agreement and the Investors' Rights Agreement, to own and
operate its properties and assets and to carry on its business as currently
conducted and as presently proposed to be conducted.

          3.2  Capitalization.  Immediately prior to the Closing the
               --------------
capitalization of the Company will consist of the following:

               (a)  Preferred Stock.  A total of 18,046,756 authorized shares of
                    ---------------
preferred stock, no par value per share (the "Preferred Stock"), consisting of
                                              ---------------
3,055,000 shares designated as Series A Preferred Stock ("Series A Stock"),
                                                          --------------
3,055,000 of which will be issued and outstanding, 1,976,469 shares designated
as Series B Preferred Stock ("Series B Stock"), 1,976,469 of which will be
                              --------------
issued and outstanding, 2,055,760 shares designated as Series C

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Preferred Stock ("Series C Stock"), 1,954,937 of which will be issued and
                  --------------
outstanding, 1,187,575 shares designated as Series D Preferred Stock ("Series D
                                                                       --------
Stock"), 1,187,575 of which will be issued and outstanding, 2,051,846 shares
-----
designated as Series E Stock ("Series E Stock"), 2,031,846 of which will be
                               --------------
issued and outstanding, and 7,800,000 shares designated as Series F Stock
("Series F Stock"), none of which will be issued and outstanding. The rights,
  --------------
preferences and privileges of the Series A Stock, the Series B Stock, the Series
C Stock, the Series D Stock, the Series E Stock and the Series F Stock will be
as stated in the Restated Articles and as provided by law.

          (b) Common Stock.  A total of 50,000,000 authorized shares of common
              ------------
stock, no par value per share (the "Common Stock"), of which 9,638,036 shares
                                    ------------
will be issued and outstanding.

          (c) Options, Warrants, Reserved Shares.  Except for:  (i) the
              ----------------------------------
conversion privileges of the Series A Stock, the Series B Stock, the Series C
Stock, the Series D Stock, the Series E Stock and the Series F Stock; (ii) the
8,740,000 shares of Common Stock reserved for issuance under the Company's 1996
Stock Option Plan, as amended, of which 6,904,656 shares of Common Stock were
granted and exercised (reflected in the number set forth in Section 3.2(b)
above), and options to purchase 1,482,955 shares are outstanding; (iii) the
46,666 shares of Common Stock subject to outstanding warrants; (iv) the 100,823
shares of Series C Preferred Stock subject to outstanding warrants; (v) the
20,000 shares of Series E Preferred Stock subject to an outstanding warrant; and
(vi) the rights of first refusal (the "Existing Refusal Rights") granted to
                                       -----------------------
certain investors under Section 3 of that certain Fourth Investors' Rights
Agreement dated November 29, 1999 by and among the Company and such investors
(the "Existing Rights Agreement"); there are not outstanding any options,
      -------------------------
warrants, rights (including conversion or preemptive rights) or agreements for
the purchase or acquisition from the Company of any shares of its capital stock
or any securities convertible into or ultimately exchangeable or exercisable for
any shares of the Company's capital stock.  Apart from the exceptions noted in
this Section 3.2(c), and except for rights of first refusal and rights of
repurchase held by the Company to purchase shares of its stock issued under the
Company's 1996 Stock Option Plan, as amended, and stock purchase agreements, no
shares of the Company's outstanding capital stock, or stock issuable upon
exercise or exchange of any outstanding options, warrants or rights, or other
stock issuable by the Company, are subject to any rights of first refusal or
other rights to purchase such stock (whether in favor of the Company or any
other person), pursuant to any agreement or commitment of the Company.

          (d) Section 3.2(d) of the Disclosure Schedule sets forth a complete
list of all outstanding shareholders, option holders and other security holders
of the Company as of the date hereof.

     3.3  Subsidiaries.  The Company does not presently own or control,
          ------------
directly or indirectly, any interest in any other corporation, partnership,
trust, joint venture, association, or other entity.

     3.4  Due Authorization.  All corporate action on the part of the Company,
          -----------------
its officers, directors and shareholders necessary for the authorization,
execution, delivery of, and the performance of all obligations of the Company
under, this Agreement and the Investors'

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Rights Agreement and the authorization, issuance, reservation for issuance and
delivery of all of the Purchased Shares being sold under this Agreement and of
the Conversion Shares has been taken or will be taken prior to the Closing, and
this Agreement and the Investors' Rights Agreement constitute valid and legally
binding obligations of the Company, enforceable in accordance with their
respective terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization or others laws of general application relating to or
affecting the enforcement of creditors' rights generally and (ii) the effect of
rules of law governing the availability of equitable remedies.

          3.5  Valid Issuance of Stock.
               -----------------------

               (a) The Purchased Shares, when issued, sold and delivered in
accordance with the terms of this Agreement for the consideration provided for
herein, will be duly and validly issued, fully paid and nonassessable.  The
Conversion Shares have been duly and validly reserved for issuance and, upon
issuance in accordance with the terms of the Restated Articles, will be duly and
validly issued, fully paid and nonassessable.  Except as otherwise set forth in
this Agreement, the Investors' Rights Agreement, and/or applicable state or
federal securities laws, the Purchased Shares when issued, sold and delivered,
and the Conversion Shares upon issuance, will have no other restrictions on
transfer imposed by the Company.

               (b) Based in part on the representations made by the Investors in
Section 4 hereof, the Purchased Shares and (assuming no change in applicable law
and no unlawful distribution of Purchased Shares by Investors or other parties)
the Conversion Shares will be issued in full compliance with the registration
and prospectus delivery requirements of the U.S. Securities Act of 1933, as
amended (the "1933 Act") and the registration and qualification requirements of
              --------
all applicable securities laws (provided that, with respect to the Conversion
                                -------- ----
Shares, no commission or other remuneration is paid or given, directly or
indirectly, for soliciting the issuance of Conversion Shares upon the conversion
of the Purchased Shares and no additional consideration is paid for the
Conversion Shares other than surrender of the applicable Purchased Shares upon
conversion thereof in accordance with the Restated Articles).

               (c) The outstanding shares of Common Stock, Series A Stock,
Series B Stock, Series C Stock, Series D Stock and Series E Stock are all duly
and validly authorized and issued, fully paid and nonassessable, and were issued
in compliance with all applicable federal and state securities laws.

          3.6  Governmental Consents.  No consent, approval, order or
               ---------------------
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
the Company is required in connection with the consummation of the transactions
contemplated by this Agreement or the Investors' Rights Agreement except for:
                                                                  ------ ---
(i) the filing of a Notice of Transaction pursuant to Section 25102(f) of the
California Corporate Securities Law of 1968, as amended, and the rules
thereunder (the "Law"), which filing will be effected within the time prescribed
                 ---
by law; and (ii) such other qualifications or filings under the 1933 Act and the
regulations thereunder and all other applicable securities laws as may be
required in connection with the transactions contemplated by this Agreement.
All such qualifications and filings will, in the case of qualifications, be

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effective on the Closing and will, in the case of filings, be made within the
time prescribed by law.

          3.7  Litigation.  There is no action, suit, proceeding, claim,
               ----------
arbitration or investigation ("Action") pending (or, to the best of the
                               ------
Company's knowledge, currently threatened) against: (i) the Company, its
activities, properties or assets or (ii) to the best of the Company's knowledge,
against any officer, director or employee of the Company in connection with such
officer's, director's or employee's relationship with, or actions taken on
behalf of, the Company. The Company is not aware of any basis for any such
Action. The Company is not a party to or subject to the provisions of any order,
writ, injunction, judgment or decree of any court or government agency or
instrumentality and there is no Action by the Company currently pending or which
the Company intends to initiate.

          3.8  Invention Assignment and Confidentiality Agreement.  Each former
               --------------------------------------------------
and current officer, director, employee and consultant of the Company has
entered into and executed an Invention Assignment and Confidentiality Agreement
in the form attached to this Agreement as Exhibit D or an employment or
                                          ---------
consulting agreement containing substantially similar terms, and no exceptions
have been taken by any such former or current officer, director, employee or
consultant to the terms of such an agreement.  The Company, after reasonable
inquiry, is not aware that any of its former or current officers, directors,
employees or consultants are in violation of such an agreement.

          3.9  Status of Proprietary Assets.
               ----------------------------

               (a)  Status.  The Company is not aware that any of its employees
                    ------
is obligated under any contract (including licenses, covenants or commitments of
any nature) or other agreement, or subject to any judgment, decree or order of
any court or administrative agency, that would interfere with their duties to
the Company or that would conflict with the Company's business as now conducted.
Neither the execution nor delivery of this Agreement, nor the carrying on of the
Company's business by the employees of the Company, nor the conduct of the
Company's business as now conducted, will, to the Company's knowledge, conflict
with or result in a breach of the terms, conditions or provisions of, or
constitute a default under, any contract, covenant or instrument under which any
employee is now obligated. The Company does not believe it is or will be
necessary to utilize any inventions, trade secrets or proprietary information of
any of its employees made prior to their employment by the Company, except for
inventions, trade secrets or proprietary information that have been assigned to
the Company. The Company has full title and ownership of, or is duly licensed
under or otherwise authorized to use, all patents, patent applications,
trademarks, service marks, trade names, copyrights, mask works, trade secrets,
confidential and proprietary information, designs and proprietary rights (all of
the foregoing collectively hereinafter referred to as the "Proprietary Assets"),
                                                           ------------------
necessary to enable it to carry on its business as now conducted and as proposed
to be conducted in its Business Plan without any conflict with or infringement
of the rights of others.

               (b)  Licenses; Other Agreements. The Company has not granted, and
                    --------------------------
there are not outstanding, any options, licenses or agreements of any kind
relating to any Proprietary Asset of the Company, nor is the Company bound by or
a party to any option, license or agreement of any kind with respect to any of
its Proprietary Assets.  The Company is not

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obligated to pay any royalties or other payments to third parties with respect
to the marketing, sale, distribution, manufacture, license or use of any
Proprietary Asset or any other property or rights.

          (c)  No third party has any ownership right, title, interest, claim in
or lien on any of the Company's Proprietary Assets and the Company has taken,
and in the future the Company will use its best efforts to take, all steps
reasonably necessary to preserve its legal rights in, and the secrecy of, all
its Proprietary Assets, except those for which disclosure is required for
legitimate business or legal reasons.

          (d)  No Infringement.  To the best of the Company's knowledge, the
               ---------------
Company has not violated or infringed, and is not currently violating or
infringing, any Proprietary Asset of any other person or entity. The Company has
not received any communications alleging that the Company (or any of its
employees or consultants) has violated or infringed or, by conducting its
business as proposed, would violate or infringe, any Proprietary Asset of any
other person or entity.

          (e)  No Breach by Employees.  To the best of the Company's knowledge,
               ----------------------
at no time during the conception of or reduction of any of the Company's
Proprietary Assets to practice was any developer, inventor or other contributor
to such patents operating under any grants from any governmental entity or
agency or private source, performing research sponsored by any governmental
entity or agency or private source or subject to any employment agreement or
invention assignment or nondisclosure agreement or other obligation with any
third party that could adversely affect the Company's rights in such Proprietary
Assets.

     3.10 Compliance with Law and Charter Documents.  The Company is not in
          -----------------------------------------
violation or default of any provisions of its Articles of Incorporation or
Bylaws, both as amended, or any instrument, judgment ,order, writ, decree or
material contract of the Company, to which the Company is a party or by which it
is bound and to the best of the Company's knowledge, except for any violations
that individually and in the aggregate would have no material adverse impact on
the Company's business, the Company is in compliance with all applicable
statutes, laws, regulations and executive orders of the United States of America
and all states, foreign countries or other governmental bodies and agencies
having jurisdiction over the Company's business or properties. The Company has
not received any notice of any violation of such statutes, laws, regulations or
orders which has not been remedied prior to the date hereof. The execution,
delivery and performance of this Agreement and the Investors' Rights Agreement
and the consummation of the transactions contemplated hereby or thereby will not
result in any such violation or default, or be in conflict with or constitute,
with or without the passage of time or the giving of notice or both, either a
default under the Company's Articles of Incorporation or Bylaws, or any
instrument, judgment ,order, writ, decree or material contract of the Company,
to which the Company is a party or by which it is bound, or, to the best of the
Company's knowledge, a violation of any statutes, laws, regulations or orders,
or an event which results in the creation of any lien, charge or encumbrance
upon any asset of the Company.

     3.11 Registration Rights.  Except as provided in the Investors' Rights
          -------------------
Agreement, the Company has not granted or agreed to grant to any person or
entity any rights (including piggyback registration rights) to have any
securities of the Company registered with

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the United States Securities and Exchange Commission ("SEC") or any other
                                                       ---
governmental authority.

          3.12 Title to Property and Assets.  The properties and assets the
               ----------------------------
Company purports to own are owned by the Company free and clear of all
mortgages, deeds of trust, liens, encumbrances and security interests except for
statutory liens for the payment of current taxes that are not yet delinquent and
liens, encumbrances and security interests which arise in the ordinary course of
business and which do not materially affect the properties and assets of the
Company. With respect to any property or assets it leases, the Company is in
material compliance with such leases, and, to the Company's actual knowledge,
without further investigation or any search of recorded filings in any
jurisdiction, the Company's direct interests, including, without limitation, all
expected uses and quiet enjoyment thereof, in such leased property or assets are
free of any third party claims or encumbrances, other than such claims and
encumbrances as may be placed thereon by the lessor or owner of such property or
asset, or such lessor's or owner's creditors, in their ordinary course of
business.

          3.13 Financial Statements.  Attached to this Agreement as Exhibit E is
               --------------------                                 ---------
an audited balance sheet of the Company dated March 31, 1999, and an audited
income statement and statement of cash flows of the Company for its fiscal year
ended March 31, 1999, and an unaudited balance sheet of the Company dated March
31, 2000 (the "Balance Sheet Date") and an unaudited income statement of the
               ------------------
Company for the fiscal year ended March 31, 2000 (all such financial statements
being collectively referred to herein as the "Financial Statements").  Such
                                              --------------------
Financial Statements (i) are in accordance with the books and records of the
Company; (ii) are true, correct and complete and present fairly the financial
condition of the Company at the date or dates thereon indicated and the results
of operations for the period or periods thereon specified; and (iii) have been
prepared in accordance with generally accepted accounting principles applied on
a consistent basis, except that the unaudited financial statements omit notes
and are subject to normal year-end audit adjustments.

          3.14 Certain Actions.  Since the Balance Sheet Date, the Company has
               ---------------
not:  (i) declared or paid any dividends, or authorized or made any distribution
upon or with respect to any class or series of its capital stock; (ii) incurred
any indebtedness for money borrowed or incurred any other liabilities
individually in excess of $50,000 or in excess of $100,000 in the aggregate;
(iii) made any loans or advances to any person, other than ordinary advances for
travel expenses; (iv) sold, exchanged or otherwise disposed of any material
assets or rights other than the sale of inventory in the ordinary course of its
business; or (v) entered into any material transactions with any of its
officers, directors or employees or any entity controlled by any of such
individuals.

          3.15 Activities Since Balance Sheet Date.  Since the Balance Sheet
               -----------------------------------
Date, there has not been:

          (a) any damage, destruction or loss, whether or not covered by
insurance, materially and adversely affecting the assets, properties, financial
condition, operating results, prospects or business of the Company (as presently
conducted and as presently proposed to be conducted);

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          (b) any waiver by the Company of a valuable right or of a material
debt owed to it;

          (c) any material change or amendment to a material contract or
arrangement by which the Company or any of its assets or properties is bound or
subject, except for changes or amendments which are expressly provided for or
disclosed in this Agreement;

          (d) to the Company's knowledge, any other event or condition of any
character which would materially and adversely affect the assets, properties,
financial condition, operating results or business of the Company;

          (e) any deferred compensation charge or tax withholding obligation
incurred on any shares of Common Stock issued to date;

          (f) any resignation or termination of any executive officers or key
employees of the Company;

          (g) any sale, assignment or transfer of any patents, trademarks,
copyrights, trade secrets or other intangible assets, or any rights therein,
except in the ordinary course of business; or

          (h) any satisfaction or discharge of any lien, claim or encumbrance or
payment of any obligation by the Company, except such satisfaction, discharge or
payment made in the ordinary course of business that is not material to the
assets, properties, financial condition, operating results or the business of
the Company.

    3.16  ERISA Plans.  The Company does not have any Employee Pension
          -----------
Benefit Plan as defined in Section 3 of the Employee Retirement Income Security
Act of 1974, as amended.

     3.17 Insurance.  The Company has in full force and effect fire and casualty
          ---------
insurance policies, with extended coverage, sufficient in amount (subject to
reasonable deductibles) to allow it to replace any of its properties that might
be damaged or destroyed.

     3.18 Tax Returns and Payments.  The Company has timely filed all tax
          ------------------------
returns and reports required by law and has never been audited by any state or
federal taxing authority.  All tax returns and reports of the Company are true
and correct in all material respects.  The Company has paid all taxes and other
assessments due, except those, if any, currently being contested by it in good
faith which are listed in the Schedule of Exceptions.

   The provisions for taxes in the Financial Statements are sufficient for the
payment of all accrued and unpaid federal, state, county and local taxes of the
Company, whether or not assessed or disputed as of the date of each such balance
sheet. There have been no examinations or audits of any tax returns or reports
by any applicable federal, state or local governmental agency. There are in
effect no waivers of applicable statutes of limitations with respect to taxes
for any year.

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          3.19 Labor Agreements and Actions.  The Company is not bound by or
               ----------------------------
subject to any contract, commitment or arrangement with any labor union, and to
the Company's best knowledge, no labor union has requested, sought or attempted
to represent any employees, representatives or agents of the Company.  There is
no strike or other labor dispute involving the Company pending nor, to the
Company's best knowledge, threatened, nor is the Company aware of any labor
organization activity involving its employees.

          3.20 Real Property Holding Corporation Status.  Since its inception
               ----------------------------------------
the Company has not been a "United States real property holding corporation", as
defined in Section 897(c)(2) of the U.S. Internal Revenue Code of 1986, as
amended, and in Section 1.897-2(b) of the Treasury Regulations issued thereunder
(the "Regulations"), and the Company has filed with the Internal Revenue Service
      -----------
all statements, if any, with its United States income tax returns which are
required under Section 1.897-2(h) of the Regulations.

          3.21 Obligations of Management.  Each officer of the Company is
               -------------------------
currently devoting one hundred percent (100%) of his or her business time to the
conduct of the business of the Company.  The Company is not aware of any officer
or key employee of the Company planning to work less than full time at the
Company in the future.

          3.22 Full Disclosure.  This Agreement, the Exhibits hereto, the
               ---------------
Investors' Rights Agreement, and all other documents delivered by the Company to
Investors or their attorneys or agents in connection herewith or therewith or
with the transactions contemplated hereby or thereby, neither contain any untrue
statement of a material fact nor, to the Company's knowledge, omit to state a
material fact necessary in order to make the statements contained herein or
therein not misleading.

          3.23 Qualified Small Business.  The Company represents and warrants to
               ------------------------
the Investors that, to the best of its knowledge, the Purchased Shares will
qualify as "Qualified Small Business Stock" as defined in Section 1202(c) of the
Internal Revenue Code of 1986, as amended (the "Code") as of the date hereof.
                                                ----
The Company will use all reasonable efforts to comply with the reporting and
record keeping requirements of Section 1202 of the Code, any regulations
promulgated thereunder and any similar state laws and regulations.  The Company
will use all reasonable efforts to extend the time periods for repurchases of
stock from employees which have left the Company if necessary to qualify under
Section 1202(c) of the Code so long as obtaining such an extension does not
limit or restrict the ability of the Company to repurchase such stock at the
original purchase price at a later time.

          3.24 Agreements; Action.
               ------------------

               (a)  There are no agreements, understandings or proposed
transactions between the Company and any of its officers, directors or
affiliates, or any affiliate thereof.

               (b)  There are no agreements, understandings, instruments,
contracts, proposed transactions, judgments, orders, writs or decrees to which
the Company is a party or by which it is bound which involve: (i) obligations of
or payments to the Company in excess of $100,000; (ii) the license of any
intellectual property to or from the Company; (iii) provisions restricting or
affecting the development, manufacture or distribution of the Company's products

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or services; or (iv) indemnification by the Company with respect to
infringements of intellectual property rights.

          (c)   The Company has not:  (i) declared or paid any dividends or
authorized or made any distribution upon or with respect to any class or series
of its capital stock; (ii) incurred any indebtedness for money borrowed or
incurred any other liabilities individually in excess of $50,000 or in excess of
$100,000 in the aggregate; (iii) made any loans or advances to any person, other
than ordinary advances for travel expenses; and (iv) sold, exchanged or
otherwise disposed of any of its assets or rights, other than in the ordinary
course of business.

          (d)   For purposes of this section, all indebtedness, liabilities,
agreements, understandings, instruments, contracts and proposed transactions
involving the same person or entity (including persons or entities the Company
has reason to believe are affiliated therewith) shall be aggregated for the
purpose of meeting the individual and aggregate minimum dollar amounts of this
section.

     3.25 Related-Party Transactions.  No employee, officer or director of the
          --------------------------
Company or member of his or her immediate family is indebted to the Company,
nor is the Company indebted (or committed to make loans or extend or guarantee
credit) to any of them.  To the Company's knowledge, none of such persons has
any direct or indirect ownership interest in any firm or corporation with which
the Company is affiliated or with which the Company has a business relationship,
or any firm or corporation that competes with the Company, except that
employees, officers or directors of the Company and members of their immediate
families may own stock in publicly traded companies that compete with the
Company.  No member of the immediate family of any officer or director of the
Company is directly or indirectly interested in any material contract with the
Company.

     3.26 Employment Agreements.  No employee has any agreement or
          ---------------------
contract, written or verbal, regarding his or her employment.  The Company is
not a party to or bound by any currently effective employment contract, deferred
compensation agreement, bonus plan, incentive plan, profit sharing plan,
retirement agreement or other employee compensation plan or agreement.  To the
Company's knowledge, no employee of the Company, nor any consultant with whom
the Company has contracted, is in violation of any term of any employment
contract, proprietary information agreement or other agreement relating to the
right of any such individual to be employed by, or to contract with, the Company
because of the nature of the business to be conducted by the Company; and to the
Company's knowledge, the continued employment by the Company of its present
employees, and the performance of the Company's contracts with its independent
contractors, will not result in any such violation.  The Company has not
received any notice alleging that any such violation has occurred.  No employee
of the Company has been granted the right to continued employment by the Company
or to any material compensation following termination of employment with the
Company.  The Company is not aware that any officer or key employee intends to
terminate his employment with the Company, nor does the Company have a present
intention to terminate the employment of any of the foregoing.  The employment
of each officer and employee of the Company is terminable at the will of the
Company.

                                       10
<PAGE>

          3.27 Section 83(b) Elections. To the Company's knowledge, all
               -----------------------
elections and notices permitted by Section 83(b) of the Internal Revenue Code
have been timely filed by all employees who have purchased shares of the
Company's common stock under agreements that provide for the vesting of such
shares.

     4.   Representations, Warranties and Certain Agreements of Investors. Each
          ---------------------------------------------------------------
Investor hereby represents and warrants to, and agrees with, the Company,
severally and not jointly, that:

          4.1  Authorization. This Agreement constitutes such Investor's valid
               -------------
and legally binding obligation, enforceable in accordance with its terms except
as may be limited by (i) applicable bankruptcy, insolvency, reorganization or
other laws of general application relating to or affecting the enforcement of
creditors' rights generally and (ii) the effect of rules of law governing the
availability of equitable remedies. Each Investor represents that such Investor
has full power and authority to enter into this Agreement and the Investors'
Rights Agreement.

          4.2  Purchase for Own Account. The Purchased Shares to be purchased
               ------------------------
by such Investor hereunder will be acquired for investment for such Investor's
own account, not as a nominee or agent, and not with a view to the public resale
or distribution thereof within the meaning of the 1933 Act, and such Investor
has no present intention of selling, granting any participation in, or otherwise
distributing the same. If not an individual, such Investor also represents that
such Investor has not been formed for the specific purpose of acquiring
Purchased Shares.

          4.3  Disclosure of Information. Such Investor believes it has received
               -------------------------
or such investor has had full opportunity to access all the information it
considers necessary or appropriate to make an informed investment decision with
respect to the Purchased Shares to be purchased by such Investor under this
Agreement. Such Investor further has had an opportunity to ask questions and
receive answers from the Company regarding the terms and conditions of the
offering of the Purchased Shares and to obtain additional information (to the
extent the Company possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify any information furnished to
such Investor or to which such Investor had access. The foregoing, however, does
not in any way limit or modify the representations and warranties made by the
Company in Section 3.

          4.4  Investment Experience. Such Investor understands that the
               ---------------------
purchase of the Purchased Shares involves substantial risk. Such Investor: (i)
has experience as an investor in securities of companies in the development
stage and acknowledges that such Investor is able to fend for itself, can bear
the economic risk of such Investor's investment in the Purchased Shares and has
such knowledge and experience in financial or business matters that such
Investor is capable of evaluating the merits and risks of this investment in the
Purchased Shares and protecting its own interests in connection with this
investment and/or (ii) has a preexisting personal or business relationship with
the Company and certain of its officers, directors or controlling persons of a
nature and duration that enables such Investor to be aware of the character,
business acumen and financial circumstances of such persons.

                                       11
<PAGE>

          4.5  Accredited Investor Status. Unless otherwise expressly indicated
               --------------------------
on Exhibit A to this Agreement, such Investor is an "accredited investor" within
   ---------
the meaning of Regulation D promulgated under the 1933 Act.

          4.6  Restricted Securities. Such Investor understands that the
               ---------------------
Purchased Shares are characterized as "restricted securities" under the 1933 Act
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under the 1933 Act and applicable
regulations thereunder such securities may be resold without registration under
the 1933 Act only in certain limited circumstances. In this connection, such
Investor represents that such Investor is familiar with Rule 144 promulgated by
the SEC under the 1933 Act, as presently in effect, and understands the resale
limitations imposed thereby and by the 1933 Act. Such Investor understands that
the Company is under no obligation to register any of the securities sold
hereunder except as provided in the Investors' Rights Agreement. Such Investor
understands that no public market now exists for any of the Purchased Shares and
that it is uncertain whether a public market will ever exist for the Purchased
Shares or the Conversion Shares.

          4.7  Further Limitations on Disposition. Without in any way limiting
               ----------------------------------
the representations set forth above, such Investor further agrees not to make
any disposition of all or any portion of the Purchased Shares or the Conversion
Shares unless and until:

               (a)  there is then in effect a registration statement under the
1933 Act covering such proposed disposition and such disposition is made in
accordance with such registration statement; or

               (b)  (i)  such Investor shall have notified the Company of the
proposed disposition and shall have furnished the Company with a statement of
the circumstances surrounding the proposed disposition, and (ii) such Investor
shall have furnished the Company, at the expense of such Investor or its
transferee, with an opinion of counsel, reasonably satisfactory to the Company,
that such disposition will not require registration of such securities under the
1933 Act.

     Notwithstanding the provisions of paragraphs (a) and (b) above, no such
registration statement or opinion of counsel shall be required:  (i) for any
transfer of any Purchased Shares or Conversion Shares in compliance with SEC
Rule 144 or Rule 144A, (ii) for any transfer of Purchased Shares or Conversion
Shares by an Investor that is a partnership, a corporation, an affiliate or a
limited liability corporation ("LLC") to (A) a partner of such partnership,
                                ---
shareholder of such corporation, affiliate of such Investor, or member of such
LLC, (B) a retired partner or member of such partnership or LLC who retires
after the date hereof, (C) the estate of any such partner, shareholder or
member, or (iii) for the transfer by gift, will or intestate succession by any
Investor to his or her spouse or lineal descendants or ancestors or any trust
for the primary benefit of any of the foregoing; provided that with respect to
                                                 --------
transactions pursuant to clauses (ii) and (iii) of this sentence, the transferee
agrees in writing to be subject to the terms of this Section 4 (other than
Section 4.5) to the same extent as if the transferee were an original Investor
hereunder.

                                       12
<PAGE>

          4.8  Legends. It is understood that the certificates evidencing the
               -------
Purchased Shares and the Conversion Shares will bear the legends, subject to
Section 4.7 above, set forth below:

               (a)  THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE
SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS
ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO
REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE
REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD
OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS.

               (b)  Any legend required by the laws of the State of California,
including any legend required by the California Department of Corporations and
Sections 417 and 418 if the California Corporations Code or any other state
securities laws, including a legend substantially in the form of the following:

          THE SHARES EVIDENCED BY THIS CERTIFICATE: (1) ARE
     CONVERTIBLE INTO SHARES OF COMMON STOCK OF THE COMPANY AT THE
     OPTION OF THE HOLDER AT ANY TIME PRIOR TO AUTOMATIC CONVERSION
     THEREOF; AND (2) AUTOMATICALLY CONVERT INTO COMMON STOCK OF THE
     COMPANY IN THE EVENT OF A PUBLIC OFFERING MEETING CERTAIN
     REQUIREMENTS OR UPON APPROVAL OF A MAJORITY OF THE COMPANY'S
     PREFERRED STOCK, ALL PURSUANT TO AND UPON THE TERMS AND
     CONDITIONS SPECIFIED IN THE COMPANY'S ARTICLES OF INCORPORATION.
     A COPY OF SUCH ARTICLES OF INCORPORATION MAY BE OBTAINED, WITHOUT
     CHARGE, AT THE COMPANY'S PRINCIPAL OFFICE.

               (c)  If the Investor is a resident of the State of Georgia, a
legend substantially in the form of the following:

          THESE SECURITIES HAVE BEEN ISSUED OR SOLD IN RELIANCE ON
     PARAGRAPH (13) OF CODE SECTION 10-5-9 OF THE "GEORGIA SECURITIES
     ACT OF 1973," AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT IN A
     TRANSACTION WHICH IS EXEMPT UNDER SUCH ACT OR PURSUANT TO AN
     EFFECTIVE REGISTRATION UNDER SUCH ACT.

     The legend set forth in (a) above shall be removed by the Company from any
certificate evidencing Purchased Shares or Conversion Shares upon delivery to
the Company of an opinion

                                       13
<PAGE>

by counsel, to the extent required by Section 4.7 above, reasonably satisfactory
to the Company, that a registration statement under the 1933 Act is at that time
in effect with respect to the legended security or that such security can be
freely transferred in a public sale without such a registration statement being
in effect and that such transfer will not jeopardize the exemption or exemptions
from registration pursuant to which the Company issued the Purchased Shares or
Conversion Shares.

     5.   Conditions to Investors' Obligations at Closing. The obligations of
          -----------------------------------------------
each Investor under Section 2 of this Agreement are subject to the fulfillment
or waiver, on or before the Closing, of each of the following conditions, the
waiver of which shall not be effective against any Investor who does not consent
to such waiver, which consent may be given by written, oral or telephone
communication to the Company, its counsel or to special counsel to the
Investors:

          5.1  Representations and Warranties True. Each of the representations
               -----------------------------------
and warranties of the Company contained in Section 3 shall be true and correct
on and as of the Closing with the same effect as though such representations and
warranties had been made on and as of the date of the Closing.

          5.2  Performance. The Company shall have performed and complied with
               -----------
all agreements, obligations and conditions contained in this Agreement that are
required to be performed or complied with by it on or before the Closing and
shall have obtained all approvals, consents and qualifications necessary to
complete the purchase and sale described herein.

          5.3  Restated Articles Effective. The Restated Articles shall have
               ---------------------------
been duly adopted by the Company by all necessary corporate action of its Board
of Directors and shareholders, and shall have been duly filed with and accepted
by the Secretary of State of the State of California.

          5.4  No Material Change. There shall have been no material adverse
               ------------------
change in the business, affairs, prospects, operations, properties, assets or
condition of the Company not previously disclosed to the Investors in writing.

          5.5  Compliance Certificate. The Company shall have delivered to each
               ----------------------
Investor at the Closing a certificate signed on its behalf by its President,
Chief Executive Officer, or Chief Financial Officer certifying that the
conditions specified in Sections 5.1, 5.2, 5.3 and 5.4 have been fulfilled.

          5.6  Securities Exemptions. The offer and sale of the Purchased Shares
               ---------------------
to the Investors pursuant to this Agreement shall be exempt from the
registration requirements of the 1933 Act, the qualification requirements of the
Law and the registration and/or qualification requirements of all other
applicable state securities laws.

          5.7  Proceedings and Documents. All corporate and other proceedings in
               -------------------------
connection with the transactions contemplated at the Closing and all documents
incident thereto shall be reasonably satisfactory in form and substance to each
Investor and to the Investors' special counsel, and they shall each have
received all such counterpart originals and certified or other copies of such
documents as they may reasonably request. Such documents shall include (but not
be limited to) the following:

                                       14
<PAGE>

               (a)  Certified Charter Documents. A copy of the Restated Articles
                    ---------------------------
and the Bylaws of the Company (as amended through the date of the Closing),
certified by the Secretary of the Company as true and correct copies thereof as
of the Closing.

               (b)  Corporate Actions. A copy of the resolutions of the Board of
                    -----------------
Directors and, if required, the shareholders of the Company evidencing the
amendment to the Company's Articles of Incorporation providing for the
authorization of the Series F Stock, the approval of this Agreement and the
Investors' Rights Agreement, the issuance of the Purchased Shares and the other
matters contemplated hereby, and a copy of the Bylaws of the Company, certified
by the Secretary of the Company to be true, complete and correct.

          5.8  Bylaws. The Bylaws of the Company shall be in the form previously
               ------
presented to special counsel to the Investors and shall provide that the
authorized number of members of the Board of Directors of the Company shall be a
variable number between five (5) and seven (7) persons and shall be set at five
(5) as of the Closing.

          5.9  Board of Directors. The directors of the Company at the Closing
               ------------------
shall consist of Barry M. Ariko, Bruce Bourbon, B. J. Cassin, Neal Dempsey and
Kenneth Ross.

          5.10 Opinion of Company Counsel. Each Investor shall have received an
               --------------------------
opinion from Gray Cary Ware & Freidenrich LLP, counsel for the Company, dated as
of the date of the Closing, in the form attached hereto as Exhibit F.
                                                           ---------

          5.11 Investors' Rights Agreement. The Company, each Investor and a
               ---------------------------
sufficient number of other investors necessary to amend the Existing Rights
Agreement shall have executed and delivered the Fifth Restated Investors' Rights
Agreement in the form attached to this Agreement as Exhibit G (the "Investors'
                                                    ---------       ----------
Rights Agreement").
----------------

          5.12 Board Observation Rights. The Company shall have executed and
               ------------------------
delivered a letter to Charter Growth Capital II, L.P. and to Broadview Capital
Partners substantially in the form set forth in Exhibit H, pursuant to which a
                                                ---------
designee of each Investor shall have the right to attend all meetings of the
Board of Directors of the Company, in person or by telephone, in a non-voting
advisory capacity and the right to examine Company records.

          5.13 Existing Refusal Rights. The Existing Refusal Rights (as defined
               -----------------------
in Section 3.2) as they apply to the Purchased Shares shall have been waived to
the extent called for and described in Section 3.6 of the Investors' Rights
Agreement.

     6.   Conditions to the Company's Obligations at Closing. The obligations of
          --------------------------------------------------
the Company to each Investor under this Agreement are subject to the fulfillment
by each such Investor or waiver by the Company on or before the Closing of each
of the following conditions:

          6.1  Representations and Warranties. The representations and
               ------------------------------
warranties of such Investor contained in Section 4 shall be true and correct on
the date of the Closing with the same effect as though such representations and
warranties had been made on and as of the Closing.

                                       15
<PAGE>

          6.2  Payment of Purchase Price. Each Investor shall have delivered to
               -------------------------
the Company the purchase price specified for such Investor on Exhibit A in
accordance with the provisions of Section 2.

          6.3  Restated Articles Effective. The Restated Articles shall have
               ---------------------------
been duly adopted by the Company by all necessary corporate action of its Board
of Directors and shareholders, and shall have been duly filed with and accepted
by the Secretary of State of the State of California.

          6.4  Securities Exemptions. The offer and sale of the Purchased Shares
               ---------------------
to the Investors pursuant to this Agreement shall be exempt from the
registration requirements of the 1933 Act, the qualifications requirements of
the Law and the registration and/or qualification requirements of all other
applicable state securities laws.

          6.5  Board of Directors. The directors of the Company at the Closing
               ------------------
shall consist of Barry M. Ariko, Bruce Bourbon, B. J. Cassin, Neal Dempsey and
Kenneth Ross.

          6.6  Investors' Rights Agreement. The Company and each Investor shall
               ---------------------------
have executed and delivered the Investors' Rights Agreement.

          6.7  Proceedings and Documents. All corporate and other proceedings in
               -------------------------
connection with the transactions contemplated at the Closing and all documents
incident thereto shall be reasonably satisfactory in form and substance to the
Company and to the Company's legal counsel, and the Company shall have received
all such counterpart originals and certified or other copies of such documents
as it may reasonably request.

          6.8  Existing Refusal Rights. The Existing Refusal Rights (as defined
               -----------------------
in Section 3.2) as they apply to the Purchased Shares shall have been waived to
the extent called for and described in Section 3.6 of the Investors' Rights
Agreement.

          6.9  Minimum Purchases. The Company shall have received not less than
               -----------------
$22,000,001.85 from Investors, representing the issuance and sale, pursuant to
this Agreement, of not less than 3,410,853 shares of Series F Stock.

     7.   Post Closing Covenants of the Company.
          -------------------------------------

          7.1  Employee Invention Agreements. The Company shall require all
               -----------------------------
future officers, directors, and employees of, and consultants to, the Company to
execute and deliver an Employee Invention Assignment and Confidentiality
Agreement in substantially the form of Exhibit D.
                                       ---------

          7.2  Qualified Small Business Stock. The Company covenants that so
               ------------------------------
long as any of the Purchased Shares, or the Common Stock into which such shares
are converted, are held by an Investor (or a transferee in whose hands such
Purchased Shares or Common Stock are eligible to qualify as Qualified Small
Business Stock as defined in Section 1202(c) of the Internal Revenue Code of
1986, as amended), it will use all reasonable efforts (including complying with
any applicable filing or reporting requirements imposed by the Code on issuers
of Qualified Small Business Stock) to cause the Purchased Shares, or the Common
Stock into

                                       16
<PAGE>

which they are converted, to qualify as Qualified Small Business Stock;
provided, however, that "reasonable efforts" as used in this Section 7.3 shall
not be construed to require the Company to operate its business in a manner
which would adversely affect its business, limit its future prospects or alter
the timing or resource allocation related to its planned operations or financing
activities.

          7.3  Election of Independent Board Member. Of the two members of the
               ------------------------------------
Board of Directors that holders of Common Stock may elect, one shall (in
accordance with the Investors' Rights Agreement) be an independent director that
is nominated by the management of the Company and that is reasonably acceptable
to the directors elected by the holders of the Preferred Stock or to the
Investors (as such term is defined in the Investors' Rights Agreement).

     8.   Miscellaneous.
          -------------

          8.1  Survival of Warranties. The representations, warranties and
               ----------------------
covenants of the Company and the Investors contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement and the
Closing and shall in no way be affected by any investigation of the subject
matter thereof made by or on behalf of any of the Investors, their counsel or
the Company, as the case may be.

          8.2  Successors and Assigns. The terms and conditions of this
               ----------------------
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties.

          8.3  Governing Law. This Agreement shall be governed by and construed
               -------------
under the internal laws of the State of California as applied to agreements
among California residents entered into and to be performed entirely within
California, without reference to principles of conflict of laws or choice of
laws.

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

          8.5  Headings. The headings and captions used in this Agreement are
               --------
used for convenience only and are not to be considered in construing or
interpreting this Agreement. All references in this Agreement to sections,
paragraphs, exhibits and schedules shall, unless otherwise provided, refer to
sections and paragraphs hereof and exhibits and schedules attached hereto, all
of which exhibits and schedules are incorporated herein by this reference.

          8.6  Notices. Unless otherwise provided, any notice required or
               -------
permitted under this Agreement shall be given in writing and shall be deemed
effectively given: (i) upon personal delivery to the party to be notified; (ii)
when sent by confirmed facsimile; or (iii) upon deposit with the United States
Post Office, by registered or certified mail, postage prepaid or with a
commercial overnight carrier and addressed to the party to be notified at the
address indicated for such party on Exhibit A or, in the case of the Company, at
555 Twin Dolphin Drive, Suite 600, Redwood Shores, California 94065, or at such
other address as any party or the Company may designate by giving ten (10) days
advance written notice to all other parties.

                                       17
<PAGE>

          8.7  No Finder's Fees. Each party represents that it neither is nor
               ----------------
will be obligated for any finder's or broker's fee or commission in connection
with this transaction. The payment of any finder's or broker's fee or commission
arising in connection with this transaction shall be the sole and exclusive
obligation of the party who contracted for, or is otherwise responsible for
engaging, the services of such finder or broker. Each Investor agrees to
indemnify and to hold harmless the Company from any liability for any commission
or compensation in the nature of a finders' or broker's fee (and any asserted
liability) for which the Investor or any of its officers, partners, employees,
or representatives is responsible. The Company agrees to indemnify and hold
harmless each Investor from any liability for any commission or compensation in
the nature of a finder's or broker's fee (and any asserted liability) for which
the Company or any of its officers, employees or representatives is responsible.

          8.8  Costs, Expenses. The Company shall pay in connection with the
               ---------------
preparation, execution and delivery of this Agreement and the issuance of the
Purchased Shares at the Closing, Brobeck, Phleger & Harrison LLP a set fee of
$10,000 and reasonable expenses.

          8.9  Amendments and Waivers. Any term of this Agreement may be amended
               ----------------------
and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), only
with the written consent of the Company and the holders of Purchased Shares
and/or Conversion Shares representing at least a majority of the aggregate
number of shares of Common Stock into which the Purchased Shares then are
convertible and/or have been converted (excluding any of such shares that have
been sold to the public or pursuant to SEC Rule 144 or Rule 144A). Any amendment
or waiver effected in accordance with this Section shall be binding upon each
holder of any Purchased Shares and/or Conversion Shares at the time outstanding,
each future holder of such securities, and the Company; provided, however, that
                                                        --------  -------
no condition set forth in Section 5 may be waived with respect to any Investor
who does not consent thereto.

          8.10 Severability. If one or more provisions of this Agreement are
               ------------
held to be unenforceable under applicable law, such provision(s) shall be
excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision(s) were so excluded and shall be enforceable in
accordance with its terms.

          8.11 Waiver of Conflict of Interest. Each Investor and the Company are
               -------------------------------
aware that Gray Cary Ware & Freidenrich LLP ("GCWF") and Brobeck, Phleger &
                                              ----
Harrison LLP ("BPH") may have previously performed and may continue to perform
               ---
certain legal services for certain of the parties to this Agreement and
agreements referred to herein. Each of GCWF and BPH also may have obtained
confidential information of any such party material to GCWF's representation of
the Company and BPH's representation of the Investors in connection with this
Agreement and the transactions hereunder. In addition, each of GCWF Investment
Partnership, an affiliate of GCWF, and BPH Investment Partnership, an affiliate
of BPH, may be investing as an Investor hereunder under the terms of this
Agreement. By signing this Agreement, each Investor and the Company hereby
waives any conflict of interest arising out of such representation or such
possession of confidential information and consents to such investment. Each
Investor and the Company further represents that each has had the opportunity to
be or has been represented by independent counsel in giving the waivers
contained in this Section 8.11.

                                       18
<PAGE>

          8.12 Entire Agreement. This Agreement, together with all exhibits and
               ----------------
schedules hereto, constitutes the entire agreement and understanding of the
parties with respect to the subject matter hereof and supersedes any and all
prior negotiations, correspondence, agreements, understandings duties or
obligations between the parties with respect to the subject matter hereof.

          8.13 Further Assurances. From and after the date of this Agreement,
               ------------------
upon the request of any Investor or the Company, the Company and the Investors
shall execute and deliver such instruments, documents or other writings as may
be reasonably necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of this Agreement.

             [THE REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

                                       19
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

THE COMPANY:
-----------

Extricity, Inc.,
a California corporation

By: ______________________________
    Barry M. Ariko, President

<TABLE>

THE INVESTORS:
-------------
<S>                                                       <C>
Charter Growth Capital II, L.P.                           Broadview Capital Partners Qualified
                                                          Purchaser Fund, L.P.

    By: CGC Partners II
                                                             By:     Broadview Capital Partners
                                                                     Management LLC
    By: ______________________________________               Its:    General Partner
         George H. Bischof, General Partner

                                                             By:     ___________________________________________
                                                             Name:   ___________________________________________
                                                             Title:  Member

CGC Investors II QP, L.P.                                 Broadview Capital Partners, L.P.
    By:  CGC Partners II
                                                             By:     Broadview Capital Partners
                                                                     Management LLC
                                                             Its:    General Partner
    By: _______________________________________
        George H. Bischof, General Partner
                                                             By:     ___________________________________________
                                                             Name:   ___________________________________________
                                                             Title:  Member

CGC Investors II A, L.P.                                  Broadview Capital Partners Affiliates Fund, LLC
By:  CGC Partners II                                          By:    Broadview Capital Partners
                                                                     Management LLC
    By: ________________________________________              Its:   Manager
         George H. Bischof, General Partner

                                                             By:    ____________________________________________
                                                             Name:  ____________________________________________
                                                             Title:  Member
</TABLE>
<PAGE>

<TABLE>
<S>                                                     <C>
Aspen Tech                                              Broadview BCPSBS Fund, L.P.
                                                             By:    Broadview Capital Partners
By: _________________________________________                       Management LLC
                                                             Its:   Manager
Title: Member, General Partner
       ----------------------

                                                             By:__________________________________________
                                                             Name:________________________________________
                                                             Title: Member
WingSpring

By: _________________________________________           By: ______________________________________________

Title: Member, General Partner                              __________________________________, individual
       ----------------------

Manugistics

By: _________________________________________

Title: Member, General Partner
       ----------------------

Robertson, Stephens

By: _________________________________________

Title: Member, General Partner
       ----------------------

GCWF Investment Partners II
By GCWF Investments LLC, Managing Partner
   By: Gregory M. Gallo, President & CFO

______________________________________________

TCV IV, L.P.
a Delaware Limited Partnership
By:  Technology Crossover Management IV, L.L.C.,
Its:  General Partner

By: __________________________________________
    Name:  Carla S. Newell
    Title:  Attorney in Fact
</TABLE>
<PAGE>

<TABLE>
<S>                                                 <C>
RRE Investors, L.P.                                 RRE Investors Fund, L.P.

By: ______________________________________          By: __________________________________________
Title: Member, General Partner                      Title: Member, General Partner

Bay Partners SBIC, L.P.                             Telos Venture Partners, L.P.

By:  Bay Management Company 1995, its General
     Partner
                                                    By: ___________________________________________
By:  ________________________________________            Bruce R. Bourbon, General Partner
     _______________________, General Partner

Bay Partners LS Fund, L.P.                          Vector Capital, L.P.

     By: ____________________________________       By:  Vector Capital Partners, LLC
     Name: __________________________________
Title: ______________________________________       By:  ___________________________________________
                                                         Alexander R. Slusky, Managing Member

                                                    Piper Jaffray Technology Capital SBIC, L.P.
Donald. C Hichens
                                                    By:  Piper Ventures Capital, Inc.,
---------------------------------------------            its General Partner

                                                    By: _____________________________________________
                                                         Gary J. Blauer
                                                         Vice President

Timothy A. Woodward                                 Brendan Joseph Cassin, Trustee of the Robert
                                                    Sean Cassin Trust U/D/T dated 2/20/97
______________________________________________

                                                    By: ________________________________________
                                                         B. J. Cassin, Trustee
</TABLE>
<PAGE>

<TABLE>
<S>                                                 <C>
Brendan Joseph Cassin and Isabel B. Cassin,         Saint Francis Growth Fund
Trustees of the Cassin Family Trust U/T/D dated
January 31, 1996
                                                    By: _________________________________________

By: ___________________________________________     Title: ______________________________________
    B. J. Cassin, Trustee

Saint Mary's College of California                  Stanford University

By: __________________________________________      By: __________________________________________

Title: _______________________________________      Title: _______________________________________

Eagle Ventures II, LLC                              Crescendo II, L.P.

By: __________________________________________      By:  ______________________, its General Partner
    R. David Spreng, President
                                                    By:  ________________________________________
                                                         R. David Spreng, President

Ronald P. Antipa                                    Ray Bingham

_____________________________________________       _____________________________________________

James A. Chafoulias                                 Joe Costello

_____________________________________________       _____________________________________________

Gerald C. Down                                      Larry G. Gerdes

______________________________________________      _____________________________________________
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

<S>                                                      <C>
                                                         Paul K. Joas

                                                         _____________________________________________

Donald L. Lucas, SUCC TTEE Donald L.                     Richard M. Lucas Cancer Foundation
Lucas Profit Sharing Trust DTD 1/1/84
                                                         By: _________________________________________

By: _______________________________________              Title: ______________________________________

Title:_____________________________________

Byron A. Gregerson                                       Alberto Perez

___________________________________________              _____________________________________________

Noel Rahn                                                RWI Group II, L.P.

-------------------------------------------              By: _________________________________________
                                                             Donald A. Lucas, General Partner

F & W Investments 2000                                   Gregory V. Vaughan

By: _______________________________________              ---------------------------------------------

Name: _____________________________________

Title: ____________________________________

Bert L. Zaccaria                                         Isaac Stein and Madelein Johnson Stein,
                                                         Trustees of the Stein 1995 Revocable Trust
____________________________________________
                                                         By: _________________________________________

                                                         Title:_______________________________________
</TABLE>
<PAGE>

Cambridge Technology Capital

   By: _______________________________________

   Name: _____________________________________

   Title: ____________________________________

<TABLE>
<S>                                                           <C>
Chancellor Private Capital Partners III, L.P.                 Citiventure 96 Partnership, L.P.
By:  CPCP Associates, L.P., its General Partner               By:  INVESCO Private Capital, Inc., as
By:  INVESCO Private Capital, Inc., its General               Investment Advisor and Attorney-in-Fact
     Partner

By: __________________________________________                By: __________________________________________

     Name: ___________________________________                    Name: ____________________________________

     Title ___________________________________                    Title: ___________________________________

Chancellor Private Capital Offshore Partners II,              Chancellor Private Capital Offshore Partners
 L.P.                                                         I, C V
By:  CPCO Associates, L.P., its Investment                    By:  Chancellor KME IV, L.P., its Investment
 General Partner                                              General Partner
By:  INVESCO Private Capital, Inc., its General               By:  INVESCO Private Capital, Inc., its
 Partner                                                      General Partner

By: __________________________________________                By: ____________________________________________

    Name: ____________________________________                    Name: ______________________________________

    Title: ___________________________________                    Title: _____________________________________

Anne Marie Jasse & Bruce Fram,                                Ken Goldman
Community Property

By: __________________________________________                _______________________________________________

Title: _______________________________________
</TABLE>

<PAGE>

Intel 64 Fund, LLC
By:  Intel 64 Fund Operations, Inc.,
     its Coordinating Member

     By: ______________________________________
          Arvind Sodhani
          Vice President and Treasurer
<TABLE>
<S>                                                      <C>
SAP America, Inc.                                        Motete Corporation

                                                         By: _________________________________________

   By: ________________________________________          Title: ______________________________________

   Name: ______________________________________

   Title: _____________________________________

Sand Hill Financial Company                              Liberty Environmental Partners, L.P.

By: __________________________________________           By: _________________________________________

Title: _______________________________________           Name:  __________________, General Partner

Aaron Ross                                               Alison Ross

______________________________________________           _____________________________________________

Catherine Ross                                           David Ross

______________________________________________           _____________________________________________

Jeffrey O. Henley & Judy Henley TTEEs, Jeffrey           Arlene B. Tenenbaum and Joshua B. Tenenbaum
 and Judy Henley Trust I dtd 10/23/89                    as Trustees of the Jay M. Tenenbaum
                                                         Technology Trust

By: __________________________________________

Title: _______________________________________           By: __________________________________________

                                                         Title: _______________________________________
</TABLE>
<PAGE>

                  SERIES F PREFERRED STOCK PURCHASE AGREEMENT

                                LIST OF EXHIBITS
                                ----------------

     Exhibit A   -   Schedule of Investors

     Exhibit B   -   Amended and Restated Articles of Incorporation

     Exhibit C   -   Schedule of Exceptions

     Exhibit D   -   Form of Invention Assignment and Confidentiality Agreement

     Exhibit E   -   Financial Statements

     Exhibit F   -   Form of Opinion of Company Counsel

     Exhibit G   -   Fifth Restated Investors' Rights Agreement

     Exhibit H   -   Board Observation Rights Letter
<PAGE>

                                   Exhibit A
                                   ---------

                             SCHEDULE OF INVESTORS
<PAGE>

                                   Exhibit B
                                   ---------

                AMENDED AND RESTATED ARTICLES OF INCORPORATION
<PAGE>

                                   Exhibit C
                                   ---------

                            SCHEDULE OF EXCEPTIONS
<PAGE>

                                   Exhibit D
                                   ---------

          FORM OF INVENTION ASSIGNMENT AND CONFIDENTIALITY AGREEMENT
<PAGE>

                                   Exhibit E
                                   ---------

                             FINANCIAL STATEMENTS
<PAGE>

                                   Exhibit F
                                   ---------

                      FORM OF OPINION OF COMPANY COUNSEL
<PAGE>

                                   Exhibit G
                                   ---------

                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   Exhibit H
                                   ---------

                        BOARD OBSERVATION RIGHTS LETTER<PAGE>

                                                                     EXHIBIT 4.3

                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT
                  ------------------------------------------

          This Fifth Restated Investors' Rights Agreement (this "Agreement") is
                                                                 ---------
made and entered into as of May 3, 2000 by and among Extricity, Inc., a
California corporation (the "Company"), and the persons and entities listed on
                             -------
Exhibit A attached hereto (the "Investors") and the persons listed on Exhibit B
---------                       ---------                             ---------
attached hereto (the "Shareholders").
                      ------------

                                   RECITALS
                                   --------

          A.   Certain of the Investors (the "Prior Investors") are holders of
                                              ---------------
outstanding shares of the Company's Series A Preferred Stock ("Series A Stock")
                                                               --------------
issued by the Company to such Prior Investors pursuant to a Series A Preferred
Stock Purchase Agreement by and among the Company and the Prior Investors dated
May 10, 1996 (the "Series A Agreement"), and/or holders of outstanding shares of
                   ------------------
the Company's Series B Preferred Stock ("Series B Stock") issued by the Company
                                         --------------
to such Prior Investors pursuant to a Series B Preferred Stock Purchase
Agreement by and among the Company and the Prior Investors dated June 17, 1997
(the "Series B Agreement"), and/or holders of outstanding shares of the
      ------------------
Company's Series C Preferred Stock ("Series C Stock") issued by the Company to
                                     --------------
such Prior Investors pursuant to a Series C Preferred Stock Purchase Agreement
by and among the Company and the Prior Investors dated April 24, 1998 (the
"Series C Agreement"), and/or holders of outstanding shares of the Company's
 ------------------
Series D Preferred Stock ("Series D Stock") issued by the Company to such Prior
                           --------------
Investors pursuant to a Series D Preferred Stock Purchase Agreement by and among
the Company and the Prior Investors dated April 28, 1999 (the "Series D
                                                               --------
Agreement"), and/or holders of outstanding shares of the Company's Series E
---------
Preferred Stock ("Series E Stock") issued by the Company to such Prior Investors
                  --------------
pursuant to a Series E Preferred Stock Purchase Agreement by and among the
Company and the Prior Investors dated November 29, 1999 (the "Series E
                                                              --------
Agreement"), and have also been granted certain information and registration
---------
rights and rights of first refusal under the Fourth Restated Investors' Rights
Agreement by and among the Company and the Prior Investors dated November 29,
1999 (the "Prior Rights Agreement").
           ----------------------

          B.   Certain Investors (the "Series F Investors") have agreed to
                                       ------------------
purchase shares of the Company's Series F Preferred Stock ("Series F Stock")
                                                            --------------
pursuant to a certain Series F Preferred Stock Purchase Agreement by and among
the Company and such Series F Investors dated of even date herewith (the "Series
                                                                          ------
F Agreement").  The Series F Agreement provides that, as a condition to the
-----------
Series F Investors' purchase of Series F Stock thereunder, the Company will
enter into this Agreement and the Series F Investors will be granted the rights
set forth herein.  (The Series A Stock, Series B Stock, Series C Stock, Series D
Stock, Series E Stock and Series F Stock are collectively referred to as the
"Preferred Stock").
 ---------------

          C.   The Company and the undersigned parties hereto desire to enter
into this Agreement in order to amend, restate and replace the rights and
obligations of all parties to and under the Prior Rights Agreement with the
rights and obligations set forth in this Agreement and to extend such rights and
obligations to the Series F Investors.  Section 6.2 of the Prior Rights
Agreement provides that the Prior Rights Agreement may be amended by the written
consent of the holders of a majority of the "Investors' Shares" (as defined in
Section 6.2 of the Prior Rights Agreement) and the undersigned parties to this
Agreement hold a majority of the Investors' Shares, as defined in the Prior
Rights Agreement.

                                       1
<PAGE>

          NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual promises hereinafter set forth, the parties hereto agree as follows:

          1.   INFORMATION RIGHTS.
               ------------------

               1.1  Financial Information.  The Company covenants and agrees
                    ---------------------
that, commencing on the date of this Agreement, the Company will:

                    (a)  Annual Reports.  Furnish to each Investor as soon as
                         --------------
practicable and in any event within ninety (90) days after the end of each
fiscal year of the Company, a consolidated Balance Sheet as of the end of such
fiscal year, a consolidated Statement of Income and a consolidated Statement of
Cash Flows of the Company and its subsidiaries for such year, setting forth in
each case in comparative form the figures from the Company's previous fiscal
year (if any), all prepared in accordance with generally accepted accounting
principles and practices and audited by nationally recognized independent
certified public accountants;

                    (b)  Quarterly Reports, Monthly Reports, Annual Budget.
                         -------------------------------------------------
Furnish to each Investor, for so long as any Investor holds at least 150,000
shares (such number of shares being subject to proportional adjustment to
reflect combinations or subdivisions of such Preferred Stock or dividends
declared in shares of such stock) of Preferred Stock and/or the equivalent
number on an as-converted basis of shares of Common Stock of the Company
("Common Stock") issued upon the conversion of such shares of Preferred Stock
  ------------
("Conversion Stock"):
  ----------------

                         (1) as soon as practicable, and in any case within
forty-five (45) days of the end of each fiscal quarter of the Company (except
the last quarter of the Company's fiscal year), quarterly unaudited financial
statements, including an unaudited Balance Sheet, an unaudited Statement of
Income and an unaudited Statement of Cash Flows;

                         (2) as soon as practicable, and in any case within
thirty (30) days of the end of each calendar month (except the last month of the
Company's fiscal year), monthly unaudited financial statements, including an
unaudited Balance Sheet, an unaudited Statement of Income and an unaudited
Statement of Cash Flows; and

                         (3) as soon as practicable and in any event no later
than thirty (30) days after the close of each fiscal year of the Company, an
annual operating plan and budget, prepared on a monthly basis, for the next
immediate fiscal year. The Company shall also furnish to each such Investor,
within a reasonable time of its preparation, amendments to the annual budget, if
any.

          1.2  Inspection Rights.  The Company shall permit each Investor
               -----------------
holding at least 250,000 shares (such number of shares being subject to
proportional adjustment to reflect combinations or subdivisions of such
Preferred Stock or dividends declared in shares of such stock) of Preferred
Stock and/or the equivalent number on an as-converted basis of shares of
Conversion Stock, or any combination thereof, at such Investor's expense, to
visit and inspect the Company's properties, to examine its books of account and
records and to discuss the Company's affairs, finances and accounts with its
officers, all at such reasonable times as may be requested by such Investor.

                                       2
<PAGE>

          1.3  Confidentiality.  Each Investor agrees, except to the extent such
               ---------------
information may be made publicly available by the Company, (i) to hold all
information received pursuant to this Section in confidence, (ii) not to use
such information for any purpose other than evaluating such Investor's
investment in the Company; and (iii) not to disclose any of such information to
any third party.

          1.4  Termination of Certain Rights.  The Company's obligations under
               -----------------------------
Sections 1.1, 1.2 and 1.3 above will terminate upon the closing of the Company's
initial public offering of Common Stock pursuant to an effective registration
statement filed under the U.S. Securities Act of 1933, as amended (the
"Securities Act") in which the gross proceeds raised for the Company's account
 --------------
(calculated before deduction of underwriters' discounts and omissions) exceeds
$15,000,000 and the public offering price per share of which equals or exceeds
$11.82 per share before deduction of underwriters' discounts and commissions
(such price per share of Common Stock to be appropriately adjusted to reflect
any stock dividends, stock splits or combinations, or other recapitalizations or
reorganizations).

          1.5  Rule 144A Information.  The Company agrees to provide each
               ---------------------
Investor, upon request, with such written information as may be required in
order to permit such Investor to resell any shares of the Preferred Stock or
Conversion Stock pursuant to Rule 144A promulgated under the Securities Act.

      2.  REGISTRATION RIGHTS.
          -------------------

          2.1  Definitions.  For purposes of this Section 2:
               -----------

               (a)  Registration.  The terms "register," "registered," and
                    ------------              --------    ----------
"registration" refer to a registration effected by preparing and filing a
 ------------
registration statement in compliance with the Securities Act, and the
declaration or ordering of effectiveness of such registration statement.

               (b) Registrable Securities.  The term "Registrable Securities"
                   ----------------------             ----------------------
means: (1) all the shares of Common Stock of the Company issued or issuable
upon the conversion of any shares of Preferred Stock; (2) the shares of Common
Stock now held by the Shareholders and set forth in Exhibit B attached hereto
                                                    ---------
(the "Shareholders' Shares"); and (3) any shares of Common Stock of the Company
      --------------------
issued as (or issuable upon the conversion or exercise of any warrant, right or
other security which is issued as) a dividend or other distribution with respect
to, or in exchange for or in replacement of, all such shares of Common Stock
described in clause (1) or (2) of this subsection (b); excluding in all cases,
                                                       ---------
however, any Registrable Securities sold by a person in a transaction in which
rights under this Section 2 are not assigned in accordance with this Agreement
or any Registrable Securities sold to the public or sold pursuant to Rule 144
promulgated under the Securities Act; and provided, however, that
                                          --------  -------
notwithstanding anything herein to the contrary, the Shareholders' Shares and
any shares of Common Stock described in clause (3) of this Section 2(b) that are
issued in respect of any Shareholders' Shares (which with the Shareholders'
Shares are collectively hereinafter referred to as the "Excluded Shares"), shall
                                                        ---------------
not be Registrable Securities for purposes of Sections 2.2, 2.4 or 3 of this
Agreement.

               (c) Registrable Securities Then Outstanding. The number of shares
                   ---------------------------------------
of "Registrable Securities Then Outstanding" shall mean the number of shares of
    ---------------------------------------
Common Stock

                                       3
<PAGE>

which are Registrable Securities and (1) are then issued and outstanding or (2)
are then issuable pursuant to the exercise or conversion of then outstanding and
then exercisable options, warrants or convertible securities; provided, however,
                                                              --------  -------
that Excluded Shares shall not be Registrable Securities Then Outstanding for
purposes of Sections 2.2 or 2.4 of this Agreement.

          (d)  Holder.  For purposes of this Section 2 hereof, the term "Holder"
               ------                                                    ------
means any person owning of record Registrable Securities that have not been sold
to the public or pursuant to Rule 144 promulgated under the Securities Act or to
any assignee of record of such Registrable Securities to whom rights under this
Section 2 have been duly assigned in accordance with this Agreement; provided,
                                                                     --------
however, that for purposes of this Agreement, a record holder of shares of
-------
Preferred Stock convertible into such Registrable Securities shall be deemed to
be the Holder of such Registrable Securities; provided further, that a holder of
                                              -------- -------
Excluded Shares (as defined in Section 2.1(b) shall not be a Holder with respect
to such Excluded Shares for purposes of Sections 2.2, 2.4 or 3 of this
Agreement; and provided, further, that the Company shall in no event be
               --------  -------
obligated to register shares of Preferred Stock, and that Holders of Registrable
Securities will not be required to convert their shares of Preferred Stock into
Common Stock in order to exercise the registration rights granted hereunder,
until immediately before the closing of the offering to which the registration
relates.

          (e)  Form S-3.  The term "Form S-3" means such form under the
               --------             --------
Securities Act as is in effect on the date hereof or any successor registration
form under the Securities Act subsequently adopted by the SEC which permits
inclusion or incorporation of substantial information by reference to other
documents filed by the Company with the SEC.

          (f)  SEC.  The term "SEC" or "Commission" means the U.S. Securities
               ---             ---      ----------
and Exchange Commission.

     2.2  Demand Registration.
          -------------------

          (a)  Request by Holders.  If the Company shall receive at any time
               ------------------
after the earlier to occur of (i) one (1) year after the effective date of the
Company's initial public offering of its securities pursuant to a registration
filed under the Securities Act, and (ii) December 31, 2000, a written request
from the Holders of at least forty percent (40%) of the Registrable Securities
Then Outstanding that the Company file a registration statement under the
Securities Act covering the registration of Registrable Securities pursuant to
this Section 2.2, then the Company shall, within ten (10) business days of the
receipt of such written request, give written notice of such request ("Request
                                                                       -------
Notice") to all Holders, and effect, as soon as practicable, the registration
------
under the Securities Act of all Registrable Securities which Holders request to
be registered and included in such registration by written notice given by such
Holders to the Company within twenty (20) days after receipt of the Request
Notice, subject only to the limitations of this Section 2.2; provided that the
                                                             --------
Registrable Securities requested by all Holders to be registered pursuant to
such request must either (i) be at least twenty-five percent (25%) of all
Registrable Securities Then Outstanding or (ii) have an anticipated aggregate
public offering price (before any underwriting discounts and commissions) of not
less than $5,000,000.

          (b)  Underwriting.  If the Holders initiating the registration request
               ------------
under this Section 2.2 ("Initiating Holders") intend to distribute the
                         ------------------
Registrable Securities

                                       4
<PAGE>

covered by their request by means of an underwriting, then they shall so advise
the Company as a part of their request made pursuant to this Section 2.2 and the
Company shall include such information in the written notice referred to in
subsection 2.2(a). In such event, the right of any Holder to include his
Registrable Securities in such registration shall be conditioned upon such
Holder's participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting (unless otherwise mutually agreed by
a majority in interest of the Initiating Holders and such Holder) to the extent
provided herein. All Holders proposing to distribute their securities through
such underwriting shall enter into an underwriting agreement in customary form
with the managing underwriter or underwriters selected for such underwriting by
the Company (which underwriter shall be reasonably acceptable to a majority in
interest of the Initiating Holders). Notwithstanding any other provision of this
Section 2.2, if the underwriter(s) advise(s) the Company in writing that
marketing factors require a limitation of the number of securities to be
underwritten then the Company shall so advise all Holders of Registrable
Securities which would otherwise be registered and underwritten pursuant hereto,
and the number of Registrable Securities that may be included in the
underwriting shall be reduced as required by the underwriter(s) and allocated
among the Holders of Registrable Securities requesting registration on a pro
rata basis according to the number of Registrable Securities Then Outstanding
held by each Holder requesting registration (including, but not limited to, the
Initiating Holders); provided, however, that the number of shares of
                     --------  -------
Registrable Securities held by Holders to be included in such underwriting and
registration shall not be reduced unless first, all securities held by
Shareholders are entirely excluded from the underwriting and registration, and
second, if the number of shares to be registered still exceed the limitation set
by the underwriter(s), all other securities of the Company are excluded from the
underwriting and registration. Any Registrable Securities excluded and withdrawn
from such underwriting shall be withdrawn from the registration.

          (c)  Maximum Number of Demand Registrations.  The Company is obligated
               --------------------------------------
to effect only two (2) such registrations pursuant to this Section 2.2.

          (d)  Deferral.   Notwithstanding the foregoing, if the Company shall
               --------
furnish to Holders requesting the filing of a registration statement pursuant to
this Section 2.2, a certificate signed by the President or Chief Executive
Officer of the Company stating that in the good faith judgment of the Board of
Directors of the Company it would be seriously detrimental to the Company and
its shareholders for such registration statement to be filed and it is therefore
essential to defer the filing of such registration statement, then the Company
shall have the right to defer such filing for a period of not more than six (6)
months after receipt of the request of the Initiating Holders; provided,
                                                               --------
however, that the Company may not utilize this right more than once in any
-------
twelve (12) month period.

          (e)  Expenses.  All expenses incurred in connection with a
               --------
registration pursuant to this Section 2.2, including without limitation all
registration and qualification fees, printers' and accounting fees, fees and
disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel for the selling Holders, which counsel may (if
desired by the selling Holders) be counsel for the Company, (but excluding
underwriters' discounts and commissions), shall be borne by the Company. Each
Holder participating in a registration pursuant to this Section 2.2 shall bear
such Holder's proportionate share (based on the number of shares sold by such
Holder divided by the total number of shares sold in such

                                       5
<PAGE>

registration) of all discounts, commissions or other amounts payable to
underwriters or brokers in connection with such offering. Notwithstanding the
foregoing, the Company shall not be required to pay for any expenses of any
registration proceeding begun pursuant to this Section 2.2 if the registration
request is subsequently withdrawn at the request of the Holders of a majority of
the Registrable Securities to be registered, unless the Holders of a majority of
the Registrable Securities Then Outstanding agree to forfeit their right to one
(1) demand registration pursuant to this Section 2.2 (in which case such right
shall be forfeited by all Holders of Registrable Securities); provided, further,
                                                              --------  -------
however, that if at the time of such Registrable Securities held by Holders to
-------
withdrawal, the Holders have learned of a material adverse change in the
condition, business, or prospects of the Company not known to the Holders at the
time of their request for such registration and have withdrawn their request for
registration with reasonable promptness after learning of such material adverse
change, then the Holders shall not be required to pay any of such expenses and
shall retain their rights pursuant to this Section 2.2.

          2.3  Piggyback Registrations.  The Company shall notify all Holders of
               -----------------------
Registrable Securities in writing at least thirty (30) days prior to filing any
registration statement under the Securities Act for purposes of effecting a
public offering of securities of the Company (including, but not limited to,
registration statements relating to secondary offerings of securities of the
Company, but excluding registration statements relating to any employee benefit
             ---------
plan or a corporate reorganization) and will afford each such Holder an
opportunity to include in such registration statement all or any part of the
Registrable Securities then held by such Holder.  Each Holder desiring to
include in any such registration statement all or any part of the Registrable
Securities held by such Holder shall, within twenty (20) days after receipt of
the above-described notice from the Company, so notify the Company in writing,
and in such notice shall inform the Company of the number of Registrable
Securities such Holder wishes to include in such registration statement.  If a
Holder decides not to include all of its Registrable Securities in any
registration statement thereafter filed by the Company, such Holder shall
nevertheless continue to have the right to include any Registrable Securities in
any subsequent registration statement or registration statements as may be filed
by the Company with respect to offerings of its securities, all upon the terms
and conditions set forth herein.

               (a)  Underwriting.  If a registration statement under which the
                    ------------
Company gives notice under this Section 2.3 is for an underwritten offering,
then the Company shall so advise the Holders of Registrable Securities. In such
event, the right of any such Holder's Registrable Securities to be included in a
registration pursuant to this Section 2.3 shall be conditioned upon such
Holder's participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their Registrable Securities through such
underwriting shall enter into an underwriting agreement in customary form with
the managing underwriter or underwriter(s) selected by the Company for such
underwriting. Notwithstanding any other provision of this Agreement, if the
managing underwriter determine(s) in good faith that marketing factors require a
limitation of the number of shares to be underwritten, then the managing
underwriter(s) may exclude shares (including Registrable Securities) from the
registration and the underwriting, and the number of shares that may be included
in the registration to the underwriting shall be allocated, first, to the and
second, to each of the Investors who are Holders requesting inclusion of their
Registrable Securities in such registration statement on a pro rata basis based
on the number of Registrable Securities each such Holder has requested to be
included in the

                                       6
<PAGE>

registration; and third, to the Holders other than the Investors on a pro rata
                  -----
basis based on the total number of Registrable Securities each such Holder has
requested to be included in the registration; provided however, that the right
                                              -------- -------
of the underwriters to exclude shares (including Registrable Securities) from
the registration and underwriting as described above shall be restricted so
that: (A) the number of Registrable Securities included in any such registration
is not reduced below thirty percent (30%) of the shares included in the
registration, except for (i) a registration relating to the Company's initial
public offering, from which all Registrable Securities may be excluded and (ii)
a piggyback on a registration initiated under Section 2.2, from which all
Registrable Securities held by Shareholders may be excluded; and (B) all shares
that are not Registrable Securities and are held by persons who are employees or
directors of the Company (or any subsidiary of the Company) shall first be
excluded from such registration and underwriting before any Registrable
Securities are so excluded.

          (b)  Expenses.  All expenses incurred in connection with a
               --------
registration pursuant to this Section 2.3 (excluding underwriters' and brokers'
discounts and commissions), including, without limitation all federal and "blue
sky" registration and qualification fees, printers' and accounting fees, fees
and disbursements of counsel for the Company and reasonable fees and
disbursements of one counsel for the selling Holders (which, if desired by the
selling Holders, may be counsel to the Company) shall be borne by the Company.

     2.4  Form S-3 Registration.  In case the Company shall receive from any
          ---------------------
Holder or Holders a written request or requests that the Company effect a
registration on Form S-3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by such Holder or
Holders, then the Company will:

          (a)  Notice. Promptly give written notice of the proposed registration
               ------
and the Holder's or Holders' request therefor, and any related qualification or
compliance, to all other Holders of Registrable Securities; and

          (b)  Registration.  As soon as practicable, effect such registration
               ------------
and all such qualifications and compliances as may be so requested and as would
permit or facilitate the sale and distribution of all or such portion of such
Holder's or Holders' Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any other
Holder or Holders joining in such request as are specified in a written request
given within twenty (20) days after receipt of such written notice from the
Company; provided, however, that the Company shall not be obligated to effect
         --------  -------
any such registration, qualification or compliance pursuant to this Section 2.4:

               (1)  if Form S-3 is not available for such offering by the
Holders;

               (2)  if the Holders, together with the holders of any other
securities of the Company entitled to inclusion in such registration, propose to
sell Registrable Securities and such other securities (if any) at an aggregate
price to the public of less than $1,000,000;

                                       7
<PAGE>

               (3)  if the Company shall furnish to the Holders a certificate
signed by the President or Chief Executive Officer of the Company stating that
in the good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its shareholders for such Form S-3
Registration to be effected at such time, in which event the Company shall have
the right to defer the filing of the Form S-3 registration statement no more
than once during any twelve month period for a period of not more than six (6)
months after receipt of the request of the Holder or Holders under this Section
2.4;

               (4)  if the Company has, within the twelve (12) month period
preceding the date of such request, already effected one (1) registration on
Form S-3 for the Holders pursuant to this Section 2.4; or

               (5)  in any particular jurisdiction in which the Company would be
required to qualify to do business or to execute a general consent to service of
process in effecting such registration, qualification or compliance.

          (c)  Expenses. Subject to the foregoing, the Company shall file a Form
               --------
S-3 registration statement covering the Registrable Securities and other
securities so requested to be registered pursuant to this Section 2.4 as soon as
practicable after receipt of the request or requests of the Holders for such
registration. The Company shall pay all expenses incurred in connection with
each registration requested pursuant to this Section 2.4, (excluding
underwriters' or brokers' discounts and commissions), including without
limitation all filing, registration and qualification, printers' and accounting
fees and the reasonable fees and disbursements of counsel for the Company and
one counsel for the selling Holder or Holders (which, if desired by the selling
Holder or Holders, may be counsel for the Company).

          (d)  Not Demand Registration.  Form S-3 registrations shall not be
               -----------------------
deemed to be demand registrations as described in Section 2.2 above.

     2.5  Obligations of the Company. Whenever required to effect the
          --------------------------
registration of any Registrable Securities under this Agreement, the Company
shall, as expeditiously as reasonably possible:

          (a)  Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its best efforts to cause such
registration statement to become effective, and, upon the request of the Holders
of a majority of the Registrable Securities registered thereunder, keep such
registration statement effective for up to ninety (90) days.

          (b)  Prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement.

          (c)  Furnish to the Holders such number of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in order
to facilitate the disposition of the Registrable Securities owned by them that
are included in such registration.

                                       8
<PAGE>

          (d)  Use its best efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue Sky
laws of such jurisdictions as shall be reasonably requested by the Holders,
provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions.

          (e)  In the event of any underwritten public offering, enter into and
perform its obligations under an underwriting agreement, in usual and customary
form, with the managing underwriter(s) of such offering.  Each Holder
participating in such underwriting shall also enter into and perform its
obligations under such an agreement.

          (f)  Notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing.

          (g)  Furnish, at the request of any Holder requesting registration of
Registrable Securities, on the date that such Registrable Securities are
delivered to the underwriters for sale, if such securities are being sold
through underwriters, or, if such securities are not being sold through
underwriters, on the date that the registration statement with respect to such
securities becomes effective, (i) an opinion, dated as of such date, of the
counsel representing the Company for the purposes of such registration, in form
and substance as is customarily given to underwriters in an underwritten public
offering and reasonably satisfactory to a majority in interest of the Holders
requesting registration, addressed to the underwriters, if any, and to the
Holders requesting registration of Registrable Securities and (ii) a "comfort"
letter dated as of such date, from the independent certified public accountants
of the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering
and reasonably satisfactory to a majority in interest of the Holders requesting
registration, addressed to the underwriters, if any, and to the Holders
requesting registration of Registrable Securities.

          (h)  Use its best efforts to cause all such Registrable Securities
pursuant hereunder to be listed on any securities exchange or included for
trading on any interleader quotation system on which similar securities issued
by the Company are then listed.

          (i)  Provide a transfer agent and registrar for all Registrable
Securities registered pursuant hereunder and a CUSIP number for all such
Registrable Securities, in each case not later than the effective date of such
registration.

     2.6  Furnish Information.  It shall be a condition precedent to the
          -------------------
obligations of the Company to take any action pursuant to Sections 2.2, 2.3 or
2.4 that the selling Holders shall furnish to the Company such information
regarding themselves, the Registrable Securities held by them, and the intended
method of disposition of such securities as shall be required to timely effect
the registration of their Registrable Securities.

                                       9
<PAGE>

          2.7  Delay of Registration.  No Holder shall have any right to obtain
               ---------------------
or seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 2.

          2.8  Indemnification.  In the event any Registrable Securities are
               ---------------
included in a registration statement under Sections 2.2, 2.3 or 2.4:

               (a)  By the Company.  To the extent permitted by law, the Company
                    --------------
will indemnify and hold harmless each Holder, the partners, officers and
directors of each Holder, any underwriter (as defined in the Securities Act) for
such Holder and each person, if any, who controls such Holder or underwriter
within the meaning of the Securities Act or the Securities Exchange Act of 1934,
as amended, (the "1934 Act"), against any losses, claims, damages, or
                  --------
liabilities (joint or several) to which they may become subject under the
Securities Act, the 1934 Act or other federal or state law, insofar as such
losses, claims, damages, or liabilities (or actions in respect thereof) arise
out of or are based upon any of the following statements, omissions or
violations (collectively a "Violation"):
                            ---------

                    (i)   any untrue statement or alleged untrue statement of a
material fact contained in such registration statement, including any
preliminary prospectus or final prospectus contained therein or any amendments
or supplements thereto;

                    (ii)  the omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements
therein not misleading, or

                    (iii) any violation or alleged violation by the Company of
the Securities Act, the 1934 Act, any federal or state securities law or any
rule or regulation promulgated under the Securities Act, the 1934 Act or any
federal or state securities law in connection with the offering covered by such
registration statement;

and the Company will reimburse each such Holder, partner, officer or director,
underwriter or controlling person for any legal or other expenses reasonably
incurred by them, as incurred, in connection with investigating or defending any
such loss, claim, damage, liability or action; provided however, that the
                                               -------- -------
indemnity agreement contained in this subsection 2.8(a) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the consent of the Company (which consent
shall not be unreasonably withheld), nor shall the Company be liable in any such
case for any such loss, claim, damage, liability or action to the extent that it
arises out of or is based upon a Violation which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by such Holder, partner, officer, director, underwriter
or controlling person of such Holder.

          (b)  By Selling Holders.  To the extent permitted by law, each selling
               ------------------
Holder will indemnify and hold harmless the Company, each of its directors, each
of its officers who have signed the registration statement, each person, if any,
who controls the Company within the meaning of the Securities Act, any
underwriter and any other Holder selling securities under such registration
statement or any of such other Holder's partners, directors or officers or any
person who controls such Holder within the meaning of the Securities Act or the
1934 Act,

                                       10
<PAGE>

against any losses, claims, damages or liabilities (joint or several) to which
the Company or any such director, officer, controlling person, underwriter or
other such Holder, partner or director, officer or controlling person of such
other Holder may become subject under the Securities Act, the 1934 Act or other
federal or state law, insofar as such losses, claims, damages or liabilities (or
actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information furnished by such
Holder expressly for use in connection with such registration; and each such
Holder will reimburse any legal or other expenses reasonably incurred by the
Company or any such director, officer, controlling person, underwriter or other
Holder, partner, officer, director or controlling person of such other Holder in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained
                     --------  -------
in this subsection 2.8(b) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder, which consent shall not be unreasonably
withheld; and provided further, that the total amounts payable in indemnity by a
              -------- -------
Holder under this Section 2.8(b) in respect of any Violation or Violations shall
not exceed the net proceeds received by such Holder in the registered offering
out of which such Violation or Violations arise.

          (c)  Notice.  Promptly after receipt by an indemnified party under
               ------
this Section 2.8 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 2.8, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
                             --------  -------
have the right to retain its own counsel, with the fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential conflict of interests between such indemnified party and any other
party represented by such counsel in such proceeding.  The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if prejudicial to its ability to defend such
action, shall relieve such indemnifying party of any liability to the
indemnified party under this Section 2.8, but the omission so to deliver written
notice to the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under this Section 2.8.

          (d)  Defect Eliminated in Final Prospectus.  The foregoing indemnity
               -------------------------------------
agreements of the Company and Holders are subject to the condition that, insofar
as they relate to any Violation made in a preliminary prospectus but eliminated
or remedied in the amended prospectus on file with the SEC at the time the
registration statement in question becomes effective or the amended prospectus
filed with the SEC pursuant to SEC Rule 424(b) (the "Final Prospectus), such
                                                     ----------------
indemnity agreement shall not inure to the benefit of any person if a copy of
the Final Prospectus was furnished to the indemnified party and was not
furnished to the person asserting the loss, liability, claim or damage at or
prior to the time such action is required by the Securities Act.

                                       11
<PAGE>

               (e)  Contribution.  In order to provide for just and equitable
                    ------------
contribution to joint liability under the Securities Act in any case in which
either (i) any Holder exercising rights under this Agreement, or any controlling
person of any such Holder, makes a claim for indemnification pursuant to this
Section 2.8 but it is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 2.8 provides
for indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any such selling Holder or any such controlling
person in circumstances for which indemnification is provided under this Section
2.8; then, and in each such case, the Company and such Holder will contribute to
the aggregate losses, claims, damages or liabilities to which they may be
subject (after contribution from others) in such proportion so that such Holder
is responsible for the portion represented by the percentage that the public
offering price of its Registrable Securities offered by and sold under the
registration statement bears to the public offering price of all securities
offered by and sold under such registration statement, and the Company and other
selling Holders are responsible for the remaining portion; provided, however,
                                                           --------  -------
that, in any such case, (A) no Holder will be required to contribute any amount
in excess of the net proceeds received by such Holder from all Registrable
Securities offered and sold by such Holder pursuant to such registration
statement; and (B) no person or entity guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to
contribution from any person or entity who was not guilty of such fraudulent
misrepresentation.

               (f)  Survival.  The obligations of the Company and Holders under
                    --------
this Section 2.8 shall survive the completion of any offering of Registrable
Securities in a registration statement, and otherwise.

          2.9  "Market Stand-Off" Agreement.  Each Holder hereby agrees that it
                ---------------------------
shall not, to the extent requested by the Company or an underwriter of
securities of the Company, sell or otherwise transfer or dispose of any
Registrable Securities or other shares of stock of the Company then owned by
such Holder (other than to donees or partners or affiliates of the Holder who
agree to be similarly bound) for up to one hundred eighty (180) days following
the effective date of a registration statement of the Company; provided,
                                                               --------
however, that:
-------

               (a)  such agreement shall be applicable only to the first such
registration statement of the Company which covers securities to be sold on its
behalf to the public in an underwritten offering but not to Registrable
Securities sold pursuant to such registration statement;

               (b)  all executive officers and directors of the Company holding
capital stock of the Company and all holders of more than 1% of the outstanding
capital stock of the Company enter into similar agreements;

               (c)  such agreement shall not apply to any shares of stock other
than those that are privately acquired; and

               (d)  any waiver or termination of such agreement as to a portion
of the shares of stock shall be applied pro-rata to all Holders.

                                       12
<PAGE>

          In order to enforce the foregoing covenant, the Company shall have the
right to place restrictive legends on the certificates representing the shares
subject to this Section and to impose stop transfer instructions with respect to
the Registrable Securities and such other shares of stock of each Holder (and
the shares or securities of every other person subject to the foregoing
restriction) until the end of such period.

          2.10 Rule 144 Reporting.  With a view to making available the benefits
               ------------------
of certain rules and regulations of the Commission which may at any time permit
the sale of the Registrable Securities to the public without registration, after
such time as a public market exists for the Common Stock of the Company, the
Company agrees to:

               (a)  Make and keep public information available, as those terms
are understood and defined in Rule 144 under the Securities Act, at all times
after the effective date of the first registration under the Securities Act
filed by the Company for an offering of its securities to the general public;

               (b)  Use its best efforts to file with the Commission in a timely
manner all reports and other documents required of the Company under the
Securities Act and the 1934 Act (at any time after it has become subject to such
reporting requirements); and

               (c)  So long as any Holder owns any Registrable Securities, to
furnish to each such Holder forthwith upon request a written statement by the
Company as to its compliance with the reporting requirements of said Rule 144
(at any time after 90 days after the effective date of the first registration
statement filed by the Company for an offering of its securities to the general
public), and of the Securities Act and the 1934 Act (at any time after it has
become subject to the reporting requirements of the 1934 Act), a copy of the
most recent annual or quarterly report of the Company, and such other reports
and documents of the Company as a Holder may reasonably request in availing
itself of any rule or regulation of the Commission allowing a Holder to sell any
such securities without registration (at any time after the Company has become
subject to the reporting requirements of the 1934 Act).

          2.11 Termination of the Company's Obligations.  The Company shall have
               ----------------------------------------
no obligations pursuant to Sections 2.2 through 2.4 with respect to:  (i) any
request or requests for registration made by any Holder on a date more than five
(5) years after the closing date of the Company's initial public offering; or
(ii) any Registrable Securities proposed to be sold by a Holder in a
registration pursuant to Section 2.2, 2.3 or 2.4 if, in the opinion of counsel
to the Company, all such Registrable Securities proposed to be sold by a Holder
may be sold in any and all three-month periods without registration under the
Securities Act pursuant to Rule 144 under the Securities Act.

          2.12 Limitation on Subsequent Registration Rights.  After the date of
               --------------------------------------------
this Agreement, the Company shall not, without the prior written consent of the
Investors holding at least a majority of the Registrable Securities held by the
Investors, enter into any agreement with any holder or prospective holder of any
securities of the Company that would grant such holder registration rights on
par to or senior to those granted to the Investors hereunder.

                                       13
<PAGE>

     3.   RIGHT OF FIRST REFUSAL.
          ----------------------

          3.1  General.  Each holder of shares of Common Stock issued or
               -------
issuable upon the conversion of any shares of Preferred Stock and any party to
whom such holder's rights under this Section 3 or Section 4 have been duly
assigned in accordance with Section 6.1(b) (each such holder or assignee being
                                            ----
hereinafter referred to as a "Rights Holder") has the right of first refusal to
                              -------------
purchase such Rights Holder's Pro Rata Share (as defined below), of all (or any
part) of any "New Securities" (as defined in Section 3.2) that the Company may
from time to time issue after the date of this Agreement.  A Rights Holder's
"Pro Rata Share" for purposes of this right of first refusal and the right of
---------------
co-sale provided for in Section 4 is the ratio of (a) the number of Registrable
Securities as to which such Rights Holder is the Holder (and/or is deemed to be
the Holder under Section 2.1(d)), to (b) a number of shares of Common Stock of
the Company equal to the sum of (i) the total number of shares of Common Stock
of the Company then outstanding plus (ii) the total number of shares of Common
Stock of the Company into which all then outstanding shares of Preferred Stock
of the Company are then convertible plus (iii) the number of shares of Common
Stock of the Company subject to then outstanding options or outstanding
warrants.

          3.2  New Securities.  "New Securities" shall mean any Common Stock or
               --------------    --------------
Preferred Stock of the Company, whether now authorized or not, and rights,
options or warrants to purchase such Common Stock or Preferred Stock, and
securities of any type whatsoever that are, or may become, convertible or
exchangeable into such Common Stock or Preferred Stock, whether with or without
consideration; provided, however, that the term "New Securities" does not
               --------  -------                                 ---- ---
include:
-------

                    (i)   any shares of the Company's Common Stock (and/or
options or warrants therefor) issued to employees, officers, directors,
contractors, advisors or consultants of the Company pursuant to incentive
agreements or plans unanimously approved by the Board of Directors of the
Company;

                    (ii)  any shares of Series A Stock, Series B Stock, Series C
Stock, Series D Stock, Series E Stock or Series F Stock issued under the Series
A Agreement, Series B Agreement, Series C Agreement, Series D Agreement, Series
E Agreement or Series F Agreement, respectively, as such agreements may be
amended.

                    (iii) any securities issuable upon conversion of or with
respect to any then outstanding shares of Preferred Stock of the Company or
Common Stock or other securities issuable upon conversion thereof;

                    (iv)  any shares of the Company's Common Stock or Preferred
Stock issued in connection with any stock split or stock dividend;

                    (v)   any securities offered by the Company to the public
pursuant to a registration statement filed under the Securities Act;

                    (vi)  any shares of the Company's Common Stock or Preferred
Stock (and/or options or warrants therefor) issued or issuable in connection
with key customer relationships of the Company or to parties providing the
Company with (and in connection with

                                       14
<PAGE>

such provision of) equipment leases, real property leases, loans, credit lines,
guaranties of indebtedness, cash price reductions or similar benefits with non-
financing purposes unanimously approved by the Board of Directors of the
Company;

               (vii)  any shares of the Company's Common Stock or Preferred
Stock (and/the options or warrants therefor) issued or issuable to (a)
Entrepreneurs Foundation pursuant to the Extricity Software, Inc. Warrant to
Purchase Common Stock, dated May 19, 1999, (b) Heidrick & Struggles pursuant to
the Warrant to Purchase 8,333 Shares of Common Stock of Extricity Software,
Inc., dated December 18, 1998, (c) Gray Cary Ware & Freidenrich pursuant to the
Extricity Software, Inc. Warrant to Purchase Common Stock, dated March 13, 2000,
(d) Intel Corporation ("Intel") pursuant to the Warrant to Purchase Series C
                        -----
Preferred Stock of CrossRoute Software, Inc., dated April 24, 1998, (e)
Solectron Corporation pursuant to the Warrant to Purchase Series C Preferred
Stock of Extricity Software, Inc., dated April 21, 1999, and (f) Amkor
Technology, Inc. pursuant to the Extricity Software, Inc. Warrant to Purchase
Series E Preferred Stock, dated March 29, 2000 (collectively, the "Warrants,"
individually, a "Warrant").

               (viii) securities issued pursuant to the acquisition of another
corporation or entity by the Company by consolidation, merger, purchase of all
or substantially all of the assets, or other reorganization (including a stock-
for-stock acquisition) in which the Company acquires, in a single transaction or
series of related transactions, all or substantially all of the assets of such
other corporation or entity or fifty percent (50%) or more of the voting power
of such other corporation or entity or fifty percent (50%) or more of the equity
ownership of such other entity.

     3.3  Procedures.  In the event that the Company proposes to undertake
          ----------
an issuance of New Securities, it shall give to each Rights Holder written
notice of its intention to issue New Securities (the "Notice"), describing the
                                                      ------
type of New Securities and the price and the general terms upon which the
Company proposes to issue such New Securities.  Each Rights Holder shall have
ten (10) days from the date of receiving any such Notice to agree in writing to
purchase such Rights Holder's Pro Rata Share of such New Securities for the
price and upon the general terms specified in the Notice by giving written
notice to the Company and stating therein the quantity of New Securities to be
purchased (not to exceed such Rights Holder's Pro Rata Share).  If any Rights
Holder fails to so agree in writing within such ten (10) day period to purchase
such Rights Holder's full Pro Rata Share of an offering of New Securities (a
"Nonpurchasing Holder"), then such Nonpurchasing Holder shall forfeit the right
---------------------
hereunder to purchase that part of his Pro Rata Share of such New Securities
that he did not so agree to purchase and the Company shall promptly give each
Rights Holder who has timely agreed to purchase his full Pro Rata Share of such
offering of New Securities (a "Purchasing Holder") written notice of the failure
                               -----------------
of any Nonpurchasing Holder to purchase such Nonpurchasing Rights Holder's full
Pro Rata Share of such offering of New Securities (the "Overallotment Notice").
                                                        --------------------
Each Purchasing Holder shall have a right of overallotment such that such
Purchasing Holder may agree to purchase a portion of the Nonpurchasing Holders'
unpurchased Pro Rata Shares of such offering on a pro rata basis according to
the relative Pro Rata Shares of the Purchasing Rights Holders, at any time
within five (5) days after receiving the Overallotment Notice.

                                       15
<PAGE>

          3.4  Failure to Exercise.  In the event that the Rights Holders fail
               -------------------
to exercise in full the right of first refusal within such ten (10) plus five
(5) day period, then the Company shall have 120 days thereafter to sell the New
Securities with respect to which the Rights Holders' rights of first refusal
hereunder were not exercised, at a price and upon general terms not materially
more favorable to the purchasers thereof than specified in the Company's Notice
to the Rights Holders.  In the event that the Company has not issued and sold
the New Securities within such 120 day period, then the Company shall not
thereafter issue or sell any New Securities without again first offering such
New Securities to the Rights Holders pursuant to this Section 3.

          3.5  Termination.  This right of first refusal shall terminate (i)
               -----------
immediately before the closing of the first underwritten sale of Common Stock of
the Company to the public pursuant to a registration statement filed with, and
declared effective by, the SEC under the Securities Act, covering the offer and
sale of Common Stock to the public at an offering price of at least $9.00 per
share (such offering price being subject to proportional adjustment to reflect
subdivisions, combinations, stock dividends and similar transactions affecting
the number of outstanding shares of Common Stock) for an aggregate gross public
offering price (calculated before deduction of underwriters' discounts and
commissions) of at least $25,000,000, or (ii) upon (a) the acquisition of all or
substantially all the assets of the Company or (b) an acquisition of the Company
by another corporation or entity by consolidation, merger or other
reorganization in which the holders of the Company's outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing less than fifty percent (50%) or more of the voting
power of the corporation or other entity surviving such transaction.

          3.6  Waiver of Right of First Refusal.  The undersigned Prior
               --------------------------------
Investors understand and agree that while Section 3 of the Prior Rights
Agreement gives them (and other persons holding Series A Stock, Series B Stock,
Series C Stock, Series D Stock and Series E Stock) the right to purchase their
respective Pro Rata Shares (as such term is defined in the Prior Rights
Agreement) of the Series F Stock to be sold and issued by the Company, they will
instead be given the right to purchase the amounts of Series F Stock indicated
in Exhibit A hereto.  To the extent that the Pro Rata Share (as such term is
   ---------
defined in the Prior Rights Agreement) of any Prior Investor (and any other
person holding Series A Stock, Series B Stock, Series C Stock, Series D Stock or
Series E Stock) exceeds the amount indicated in Exhibit A, the Prior Investors
                                                ---------
hereby waive all rights of first refusal under Section 3 of the Prior Rights
Agreement with respect to sale and issuance by the Company of the Series F Stock
(and any Common Stock issuable upon the conversion thereof).  The Prior
Investors also hereby waive any notice period required under Section 3 of the
Prior Rights Agreement with respect to sale and issuance by the Company of the
Series F Stock (and any Common Stock issuable upon the conversion thereof).

     4.   RIGHT OF CO-SALE.
          ----------------

          4.1  General.  No Shareholder may sell, assign or transfer any of the
               -------
Shareholders' Shares which have not been elected to be purchased by the Company
pursuant to a right of first refusal held by the Company until each Rights
Holder shall have been given the opportunity, exercisable within ten (10) days
from the date of receiving written notice from the Shareholder of the proposed
sale, assignment or transfer (such notice to include the price and

                                       16
<PAGE>

general terms of such proposed sale, assignment or transfer), to sell to the
proposed transferee or transferees, upon the same terms and conditions offered
to or by the Shareholder, its Pro Rata Share of the shares proposed to be sold,
assigned or transferred. Any Rights Holder who fails to notify the Shareholder
within (10) days after receiving the written notice from the Shareholder that
this co-sale right is being exercised shall be deemed to have waived its rights
under this Section 4 with respect to such proposed sale, assignment or transfer.
Any sale, assignment or transfer made pursuant to this Section 4 shall be
consummated within ninety (90) days of the date of receiving the notice given
pursuant to this Section and shall be conditioned upon the agreement of the
proposed transferee or transferees that such proposed transferee or transferees
will purchase each electing Rights Holder's Pro Rata Share of the shares
proposed to be sold.

          4.2  Termination.  This right of co-sale shall terminate (i)
               -----------
immediately before the closing of the first underwritten sale of Common Stock of
the Company to the public pursuant to a registration statement filed with, and
declared effective by, the SEC under the Securities Act, covering the offer and
sale of Common Stock to the public at an offering price of at least $9.00 per
share (such offering price being subject to proportional adjustment to reflect
subdivisions, combinations, stock dividends and similar transactions affecting
the number of outstanding shares of Common Stock) for an aggregate gross public
offering price (calculated before deduction of underwriters' discounts and
commissions) of at least $25,000,000, or (ii) upon (a) the acquisition of all or
substantially all the assets of the Company or (b) an acquisition of the Company
by another corporation or entity by consolidation, merger or other
reorganization in which the holders of the Company's outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing less than fifty percent (50%) or more of the voting
power of the corporation or other entity surviving such transaction.

     5.   PREFERRED RIGHT OF FIRST REFUSAL AND RIGHT OF CO-SALE.
          -----------------------------------------------------

          5.1  Right of First Refusal.  (a) Each holder of shares of Common
               ----------------------
Stock issued or issuable upon the conversion of any shares of Series C Stock,
Series D Stock, Series E Stock and Series F Stock and any party to whom such
holder's rights under this Section 5 have been duly assigned in accordance with
Section 6.1(b) (each such holder or assignee being hereinafter referred to as a
                ----
"Special Rights Holder") has the right of first refusal to purchase such Special
 ---------------------
Rights Holder's Special Pro Rata Share (as defined below), of all (or any part)
of any "Special Preferred Sale" (as defined below) from time to time after the
date of this Agreement.  A Special Rights Holder's "Special Pro Rata Share" for
                                                    ----------------------
purposes of this right of first refusal and the right of co-sale provided for in
Section 5.2 is the ratio of (a) the number of Registrable Securities issued or
issuable upon conversion of Series C Stock, Series D Stock, Series E Stock or
Series F Stock as to which such Special Rights Holder is the Holder (and/or is
deemed to be the Holder under Section 2.1(d)), to (b) a number of shares of
Common Stock of the Company equal to the sum of (i) the total number of shares
of Common Stock of the Company then outstanding plus (ii) the total number of
shares of Common Stock of the Company into which all then outstanding shares of
Preferred Stock of the Company are then convertible plus (iii) the number of
shares of Common Stock of the Company subject to then outstanding options or
outstanding warrants.  "Special Preferred Sale" for purposes of this right of
                        ----------------------
first refusal and the right of co-sale provided for in Section 5.2 shall mean
the sale, assignment or transfer (other than to an affiliate, including without
limitation, a partner, shareholder or member, that agrees in writing to be

                                       17
<PAGE>

subject to the terms of this Section 5.1 to the same extent as if such affiliate
were an original party hereunder) of any shares of any series of Preferred Stock
by any Holder of such Preferred Stock who is listed on Exhibit 5.1 hereto (such
                                                       -----------
Exhibit 5.1 representing the Holders of Preferred Stock who hold in the
-----------
aggregate, together with their affiliates, five (5) percent or more of the total
outstanding Preferred Stock of the Company, and each such Holder referred to
hereinafter as a "Special Preferred Holder").
                  ------------------------

          (b)  Procedures.  In the event that any Special Preferred Holder
               ----------
proposes to undertake a Special Preferred Sale, it shall give to each Special
Rights Holder written notice of its intention to undertake a Special Preferred
Sale (the "Special Notice"), describing the series of Preferred Stock and the
           --------------
price and the general terms upon which such Special Preferred Holder proposes to
undertake such Special Preferred Sale.  Each Special Rights Holder shall have
ten (10) days from the date of receiving any such Special Notice to agree in
writing to purchase such Special Rights Holder's Special Pro Rata Share of such
Special Preferred Sale shares for the price and upon the general terms specified
in the Special Notice by giving written notice to the Special Preferred Holder
and stating therein the quantity of shares of such Special Preferred Sale to be
purchased (not to exceed such Special Rights Holder's Special Pro Rata Share).
If any Special Rights Holder fails to so agree in writing within such ten (10)
day period to purchase such Special Rights Holder's full Special Pro Rata Share
of a Special Preferred Sale, then such Special Rights Holder shall forfeit the
right hereunder to purchase that part of his Special Pro Rata Share of such
Special Preferred Sale that he did not so agree to purchase.

          5.2  Right of Co-Sale.  In the event that any Special Rights Holder
               ----------------
timely waives its right of first refusal set forth in Section 5.1 in its
entirety, such Special Rights Holder shall be given the opportunity, exercisable
within ten (10) days from the date of the Special Notice, without requiring
further notice to such Special Rights Holder, to sell to the proposed transferee
or transferees, upon the same terms and conditions offered to or by the Special
Preferred Holder, its Special Pro Rata Share of the Special Preferred Sale
shares proposed to be sold, assigned or transferred.  Any Special Rights Holder
who fails to notify the Special Preferred Holder within (10) days after
receiving the Special Notice from the Special Preferred Holder that this co-sale
right is being exercised shall be deemed to have waived its rights under this
Section 5.2 with respect to such proposed sale, assignment or transfer.  Any
sale, assignment or transfer made pursuant to this Section 5.2 shall be
consummated within ninety (90) days of the date of receiving the notice given
pursuant to this Section and shall be conditioned upon the agreement of the
proposed transferee or transferees that such proposed transferee or transferees
will purchase each electing Special Rights Holder's Special Pro Rata Share of
the shares proposed to be sold.

          5.3  Failure to Exercise.  In the event that the Special Rights
               -------------------
Holders fail to exercise in full the right of first refusal and/or right of co-
sale within such ten (10) day period, then the Special Preferred Holder shall be
free thereafter to undertake the Special Preferred Sale with respect to the
shares which the Special Rights Holders' rights of first refusal and/or rights
of co-sale under this Section 5 were not exercised, at a price and upon general
terms not materially more favorable to the purchasers thereof than specified in
the Special Notice to the Special Rights Holders.

                                       18
<PAGE>

          5.4  Termination.  The right of first refusal and the right of co-sale
               -----------
set forth in this Section 5 shall not apply to and shall terminate (i)
immediately before the closing of the first underwritten sale of Common Stock of
the Company to the public pursuant to a registration statement filed with, and
declared effective by, the SEC under the Securities Act, covering the offer and
sale of Common Stock to the public at an offering price of at least $9.00 per
share (such offering price being subject to proportional adjustment to reflect
subdivisions, combinations, stock dividends and similar transactions affecting
the number of outstanding shares of Common Stock) for an aggregate gross public
offering price (calculated before deduction of underwriters' discounts and
commissions) of at least $25,000,000, or (ii) upon (a) the acquisition of all or
substantially all the assets of the Company or (b) an acquisition of the Company
by another corporation or entity by consolidation, merger or other
reorganization in which the holders of the Company's outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing less than fifty percent (50%) or more of the voting
power of the corporation or other entity surviving such transaction.

     6.   ASSIGNMENT AND AMENDMENT.
          ------------------------

          6.1  Assignment.  Notwithstanding anything herein to the contrary:
               ----------

               (a)  Information and Inspection Rights.  The rights of an
                    ---------------------------------
Investor under Section 1.1 or 1.2 hereof may be assigned only to a party who
acquires from an Investor (or an Investor's permitted assigns) at least that
number of shares of Preferred Stock and/or an equivalent number (on an as-
converted basis) of shares of Conversion Stock described in Section 1.1 or 1.2
hereof, respectively.

               (b)  Registration Rights; Refusal Rights; Co-Sale Rights.  The
                    ---------------------------------------------------
registration rights of a Holder under Section 2 hereof, the rights of first
refusal of a Rights Holder under Section 3 hereof, the rights of co-sale of a
Rights Holder under Section 4, and the rights of first refusal and rights of co-
sale of a Special Rights Holder under Section 5 hereof may be assigned only to
(i) a party who acquires at least 250,000 shares of Registrable Securities or
(ii) (A) a shareholder, affiliate, partner, member, or beneficiary of such
Holder or Rights Holder (or permitted assignee); (B) a spouse or children of a
shareholder, partner, affiliate, member, or beneficiary of a Holder or Rights
Holder (or permitted assignee); (C) a trust for the benefit of the persons set
forth in (A) or (B) or for the issue of the persons set forth in (A) or (B); and
(D) an entity (corporation, partnership, limited liability company or other
juridical entity) of which at least 75 percent in interest is owned or
controlled, directly or indirectly through other entities, by one or more of the
persons set forth in (A), (B), or (C); provided, however that no party may be
                                       --------  -------
assigned any of the foregoing rights unless the Company is given written notice
by the assigning party at the time of such assignment stating the name and
address of the assignee and identifying the securities of the Company as to
which the rights in question are being assigned; and provided further that any
                                                     -------- -------
such assignee shall receive such assigned rights subject to all the terms and
conditions of this Agreement, including without limitation the provisions of
this Section 6.

          6.2  Amendment of Rights.  Subject to Section 6.3, any provision of
               -------------------
this Agreement may be amended and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the

                                       19
<PAGE>

Company and Investors (and/or any of their permitted successors or assigns)
holding shares of Preferred Stock and/or Conversion Stock representing and/or
convertible into a majority of all the Investors' Shares (as defined below);
provided, however, that the piggyback registration rights granted to the
--------  -------
Shareholders under Section 2 of this Agreement may not be eliminated or
materially and adversely changed without the written consent of persons holding
a majority of the Shareholders' Shares; and provided, further, that the grant to
                                            --------  -------
third parties of piggyback registration rights on a pari passu basis with the
piggyback registration rights of the Shareholders' Shares under Section 2.3
shall not be deemed to be a material and adverse change to the piggyback
registration rights of the Shareholders under this Agreement. As used herein,
the term "Investors' Shares" shall mean the shares of Common Stock then issuable
          -----------------
upon conversion of all then outstanding shares of Preferred Stock plus all then
outstanding shares of Conversion Stock that were issued upon the conversion of
any shares of Preferred Stock. Any amendment or waiver effected in accordance
with this Section 6.2 shall be binding upon each Investor, each Holder, each
permitted successor or assignee of such Investor or Holder and the Company.

          6.3  New Investors.  Notwithstanding anything herein to the contrary,
               -------------
if pursuant to Section 2.2 of the Series F Agreement, additional parties may
purchase shares of Series F Stock as "New Investors" thereunder, then each such
New Investor shall become a party to this Agreement as an "Investor" hereunder,
without the need for any consent, approval or signature of any Investor when
such New Investor has both:  (i) purchased shares of Series F Stock under the
Series F Agreement and paid the Company all consideration payable for such
shares and (ii) executed one or more counterpart signature pages to this
Agreement as an "Investor", with the Company's consent.

     7.   VOTING.
          ------

          7.1  Common Stock Directors.  The Shareholders agree to vote their
               ----------------------
shares of Common Stock so that one of the two directors elected by the Common
Stock (the "Independent Director") is an individual not employed by or providing
            --------------------
consulting services to the Company, and who is reasonably satisfactory (as
provided below) to the Preferred Directors (as defined below) or to the
Investors holding two-thirds of the outstanding shares of Series A Stock and
Series B Stock.  The Shareholders shall notify the directors elected by holders
of Preferred Stock of the Company ("Preferred Directors") of the individual
                                    -------------------
designated by the Shareholders as the Independent Director, who will be elected
if the Preferred Directors do not object to such designation within 10 days
after receipt of such notice.  If the Preferred Directors object in writing,
then the Shareholders shall either propose a new Independent Director or shall
submit their proposal to a vote of the Investors.  This procedure shall be
repeated until an Independent Director is selected.  Replacement of the
Independent Director shall conform to this procedure and Article VI, Section 4.4
of the Company's Articles of Incorporation.

          7.2  Series C/D/E/F Nominee.  The Series C Investors, Series D
               ----------------------
Investors, Series E Investors and Series F Investors, voting together as a
single class, shall be entitled to elect one (1) director of the Company (the
"Series C/D/E/F Nominee").  Any replacement of the Series C/D/E/F Nominee shall
 ----------------------
conform to this Section 7.2 and Article VI, Section 4.4 of the Company's
Articles of Incorporation.

                                       20
<PAGE>

     8.   GENERAL PROVISIONS.
          ------------------

          8.1  Notices.  Any notice, request or other communication required or
               -------
permitted hereunder shall be in writing and shall be deemed to have been duly
given (i) when sent by confirmed facsimile, (ii) upon personal delivery or (iii)
if deposited in the U.S. mail by registered or certified mail, return receipt
requested, postage prepaid, or with a commercial overnight carrier as follows:

               (a)  if to an Investor, at such Investor's respective address as
set forth on Exhibit A hereto.
             ---------

               (b)  if to the Company, at 555 Twin Dolphin Drive, Suite 600,
Redwood Shores, California 94065.

               (c)  if to a Shareholder, at such Shareholder's address as set
forth on Exhibit B hereto.
         ---------

Any party hereto (and such party's permitted assigns) may by notice so given
change its address for future notices hereunder.  Notice shall conclusively be
deemed to have been given when sent by confirmed facsimile, when personally
delivered or when deposited in the mail in the manner set forth above.

          8.2  Entire Agreement.  This Agreement, together with all the Exhibits
               ----------------
hereto, constitutes and contains the entire agreement and understanding of the
parties with respect to the subject matter hereof and supersedes the Prior
Rights Agreement and any and all prior negotiations, correspondence, agreements,
understandings, duties or obligations between the parties respecting the subject
matter hereof.  This Agreement will amend and restate the Prior Rights Agreement
to read as set forth herein, when it has been duly executed by parties having
the right to so amend and restate the Prior Rights Agreement.

          8.3  Governing Law.  This Agreement shall be governed by and construed
               -------------
exclusively in accordance with the internal laws of the State of California as
applied to agreements among California residents entered into and to be
performed entirely within California, excluding that body of law relating to
conflict of laws and choice of law.

          8.4  Severability.  If one or more provisions of this Agreement are
               ------------
held to be unenforceable under applicable law, then such provision(s) shall be
excluded from this Agreement and the balance of this Agreement shall be
interpreted as if such provision(s) were so excluded and shall be enforceable in
accordance with its terms.

          8.5  Third Parties.  Nothing in this Agreement, express or implied, is
               -------------
intended to confer upon any person, other than the parties hereto and their
successors and assigns, any rights or remedies under or by reason of this
Agreement.

          8.6  Successors And Assigns.  Subject to the provisions of Section
               ----------------------
6.1, the provisions of this Agreement shall inure to the benefit of, and shall
be binding upon, the successors and permitted assigns of the parties hereto.

                                       21
<PAGE>

          8.7  Captions.  The captions to sections of this Agreement have been
               --------
inserted for identification and reference purposes only and shall not be used to
construe or interpret this Agreement.

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

          8.9  Costs And Attorneys' Fees.  In the event that any action, suit or
               -------------------------
other proceeding is instituted concerning or arising out of this Agreement or
any transaction contemplated hereunder, the prevailing party shall recover all
of such party's costs and attorneys' fees incurred in each such action, suit or
other proceeding, including any and all appeals or petitions therefrom.

          8.10 Adjustments for Stock Splits, Etc.  Wherever in this Agreement
               ---------------------------------
there is a reference to a specific number of shares of Common Stock or Preferred
Stock of the Company of any class or series, then, upon the occurrence of any
subdivision, combination or stock dividend of such class or series of stock, the
specific number of shares so referenced in this Agreement shall automatically be
proportionally adjusted to reflect the affect on the outstanding shares of such
class or series of stock by such subdivision, combination or stock dividend.

          8.11 Aggregation of Stock.  All shares held or acquired by affiliated
               --------------------
entities or persons shall be aggregated together for the purpose of determining
the availability of any rights under this Agreement.

          8.12 Prior Rights Agreement Superseded.  Pursuant to Section 6.2 of
               ---------------------------------
the Prior Rights Agreement, the undersigned parties who are parties to such
Prior Rights Agreement hereby amend and restate the Prior Rights Agreement to
read in its entirety as set forth in this Agreement, all with the intent and
effect that the Prior Rights Agreement shall hereby be entirely replaced and
superseded by this Agreement, which shall be binding on all Prior Investors
whether or not they sign this Agreement.

          8.13 Confidentiality and Non-Disclosure.
               ----------------------------------

               (a)  Disclosure of Terms.  The terms and conditions of Intel's
                    -------------------
participation in this Agreement, the Series C Agreement, the Series D Agreement,
the Series E Agreement, the Series F Agreement and the Warrant and the terms and
conditions of the participation of SAP AG, and its affiliates (collectively,
"SAP") in this Agreement, the Series C Agreement, the Series E Agreement, and
the Series F Agreement (collectively referred to hereinafter as the respective
"Financing Terms" of the applicable party) shall be considered confidential
information and shall not be disclosed by any party hereto to any third party
except in accordance with the provisions set forth below.

               (b)  Press Releases, Etc.  Within sixty (60) days of the
                    -------------------
Closing, the Company may issue a press release in the form provided by Intel
disclosing that Intel has invested in the Company; provided that the release
does not disclose any of the Financing Terms and the final form of the press
release is approved in advance in writing by Intel. No other announcement
regarding Intel and/or SAP in a press release, conference, advertisement,

                                       22
<PAGE>

announcement, professional or trade publication, mass marketing materials or
otherwise to the general public may be made without the prior written consent of
Intel or SAP, as the case may be.

               (c)  Permitted Disclosures.  Notwithstanding the foregoing, (i)
                    ---------------------
any party may disclose any of the Financing Terms to its current or bona fide
prospective investors, employees, investment bankers, lenders, accountants and
attorneys, in each case only where such persons or entities are under
appropriate nondisclosure obligations; (ii) any party may disclose (other than
in a press release or other public announcement described in subsection (b))
solely the fact that Intel and/or SAP is an investor in the Company to any third
parties without the requirement for the consent of any other party or
nondisclosure obligations; and (iii) Intel and/or SAP may disclose its
respective investment in the Company and the Financing Terms to third parties or
to the public at its sole discretion and, if it does so, the other parties
hereto shall have the right to disclose to third parties any such information
disclosed in a press release or other public announcement by Intel and/or SAP,
as the case may be.

               (d)  Legally Compelled Disclosure.  In the event that the
                    ----------------------------
Company is requested or becomes legally compelled (including without limitation,
pursuant to securities laws and regulations) to disclose Intel's and/or SAP's
participation in this Agreement, the Series C Agreement, the Series D Agreement,
the Series E Agreement, the Series F Agreement and/or the Warrant and/or any of
the Financing Terms hereof in contravention of the provisions of this Section
8.13, the Company shall provide Intel and/or SAP, as the case may be, with
prompt written notice of that fact so that Intel and/or SAP, as the case may be,
may seek (with the cooperation and reasonable efforts of the Company) a
protective order, confidential treatment or other appropriate remedy. In such
event, the Company shall furnish only that portion of the information which is
legally required and shall exercise reasonable efforts to obtain reliable
assurance that confidential treatment will be accorded such information to the
extent reasonably requested by Intel and/ or SAP, as the case may be.

               (e)  Other Information.  The provisions of this Section 8.13
                    -----------------
shall be in addition to, and not in substitution for, the provisions of any
separate nondisclosure agreement executed by any of the parties hereto with
respect to the transactions contemplated hereby. Additional disclosures and
exchange of confidential information between the Company and Intel (including
without limitation, any exchanges of information with any Intel board observer)
shall be governed by the terms of the Corporate Non-Disclosure Agreement No.
115010, dated June 2, 1998, executed by the Company and Intel, and any
Confidential Information Transmittal Records provided in connection therewith.

               (f)  All notices required under this Section 8.13 shall be made
pursuant to Section 8.1 hereof.

               (g)  Notwithstanding anything herein to the contrary, this
Section 8.13 shall not be binding upon Intel 64 Fund, LLC.

              [THE REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

                                       23
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date and year first above written.

THE COMPANY:
-----------

Extricity, Inc.,
a California corporation

By: __________________________________
    Barry M. Ariko, President

THE SHAREHOLDERS:
----------------

By: __________________________________
    The Kenneth Ross Trust dated December 3, 1980

By: __________________________________
    Kenneth Ross, Trustee of the Ross ACD
    Irrevocable Trust

By: __________________________________
    Kenneth Ross, Trustee of the Ross BMR
    Irrevocable Trust dated August 13, 1997

By: __________________________________
    Kenneth Ross, Trustee of the Ross EAR
    Irrevocable Trust dated July 29, 1999

By: __________________________________
    Gregory R. Olsen

By: __________________________________
    Kimberly Weins

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS'RIGHTS AGREEMENT]
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date and year first above written.

THE COMPANY:
-----------

Extricity, Inc.,
a California corporation

By: _________________________
    Barry M. Ariko, President

THE INVESTORS:
-------------

Charter Growth Capital II, L.P.            Broadview Capital Partners Qualified
                                           Purchaser Fund, L.P.
  By: CGC Partners II
                                               By:  Broadview Capital Partners
                                                    Management LLC
  By: __________________________________       Its: General Partner
      George H. Bischof, General Partner
                                               By:______________________________
                                               Name:____________________________
                                               Title: Member

CGC Investors II QP, L.P.                  Broadview Capital Partners, L.P.

  By: CGC Partners II
                                               By:  Broadview Capital Partners
                                                    Management LLC
                                               Its: General Partner

  By: __________________________________       By:______________________________
      George H. Bischof, General Partner       Name:____________________________
                                               Title: Member

CGC Investors II A, L.P.                   Broadview Capital Partners
                                           Affiliates Fund, LLC
  By: CGC Partners II
                                               By:  Broadview Capital Partners
                                                    Management LLC
                                               Its: Manager

  By: __________________________________       By: _____________________________
      George H. Bischof, General Partner       Name:____________________________
                                               Title: Member

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

AspenTech                                  Broadview BCPSBS Fund, L.P.

By:_____________________________              By:  Broadview Capital Partners

Title: Member, General Partner                     Management LLC
       -----------------------
                                              Its: Manager

                                              By:______________________________
                                              Name:____________________________
                                              Title: Member
WingSpring

By:______________________________             By: ______________________________

Title: Member, General Partner                    ________________, individual
       -----------------------

Manugistics

By:______________________________

Title: Member, General Partner
       -----------------------

Robertson, Stephens

By:______________________________

Title: Member, General Partner
       -----------------------

GCWF Investment Partners II
By GCWF Investments LLC, Managing Partner
  By: Gregory M. Gallo, President & CFO

_________________________________

TCV IV, L.P.
a Delaware Limited Partnership

By:  Technology Crossover
     Management IV, L.L.C.,
Its: General Partner

By:______________________________
   Name: Carla S. Newell
   Title: Attorney in Fact

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]

<PAGE>

Bay Partners SBIC, L.P.                           RRE Investors Fund, L.P.

By: Bay Management Company 1995, its General      By: __________________________

    Partner                                       Title: Member, General Partner
                                                         -----------------------
By: ________________________________________
    ___________________, General Partner

Piper Jaffray Technology Capital SBIC, L.P.       Bay Partners LS Fund, L.P.

By: Piper Ventures Capital, Inc.,                 By:___________________________
    its General Partner                           Name:_________________________
                                                  Title:________________________

By: ________________________________________
    Gary J. Blauer
    Vice President

Vector Capital, L.P.                              Telos Venture Partners, L.P.

By: Vector Capital Partners, LLC                  By: __________________________
                                                      Bruce R. Bourbon, General
                                                      Partner
By: ________________________________________
    Alexander B. Slusky, Managing Member

Donald. C Hichens                                 RRE Investors Fund, L.P.

____________________________________________      By:___________________________

                                                  Title: Member, General Partner
                                                         -----------------------

                                                  Liberty Environmental
                                                  Partners, L.P.

                                                  By: __________________________

                                                  Name: __________________,
                                                  General Partner

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]

<PAGE>

                                            Timothy A. Woodward

                                            ___________________________________

Brendan Joseph Cassin, Trustee of the       Brendan Joseph Cassin and Isabel B.
Robert Sean Cassin Trust U/D/T dated        Cassin, Trustees of the
2/20/97                                     Cassin Family Trust U/T/D
                                            dated January 31, 1996

By: _________________________________       By: ________________________________
    B. J. Cassin, Trustee                       B. J. Cassin, Trustee

Saint Francis Growth Fund                   Saint Mary's College of California

By:__________________________________       By: ________________________________

Title:_______________________________       Title: _____________________________

Stanford University                         Eagle Ventures II, LLC

By: _________________________________       By: ________________________________

Title: ______________________________       R. David Spreng, President

Crescendo II, L.P.                          Ronald P. Antipa

By:  ________________, its General          ___________________________________
Partner

By: _________________________________
    R. David Spreng, President

Ray Bingham                                 James A. Chafoulias

_____________________________________       ___________________________________

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

Joe Costello                              Gerald C. Down

_______________________________           __________________________________
Larry G. Gerdes                           Jeffrey O. Henley & Judy Henley TTEEs,
                                          Jeffrey and Judy Henley Trust I dtd
                                          10/23/89

                                          By:___________________________________

                                          Title:________________________________

_______________________________
Paul K. Joas                              Donald L. Lucas, SUCC TTEE Donald L.
                                          Lucas Profit Sharing Trust DTD 1/1/84

                                          By:___________________________________

                                          Title:________________________________

Richard M. Lucas Cancer Foundation        Motete Corporation

By:____________________________           By:___________________________________

Title:_________________________           Title:________________________________

Alberto Perez                             Noel Rahn

_______________________________           ______________________________________

Royal Wulff Investment Group              RWI Group II, L.P.

By:____________________________           By:___________________________________
   Donald A. Lucas, General Partner          Donald A. Lucas, General Partner

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

Sand Hill Financial Company                  Gregory V. Vaughan

By:____________________________              ___________________________________

Title:_________________________

F & W Investments 1996                       F & W Investments 1996 - II

By:____________________________              By:________________________________

Title:_________________________              Title:_____________________________

F & W Investments 1997                       F & W Investments 2000

By:____________________________              By:________________________________

Title:_________________________              Title:_____________________________

WS Investments 96A                           WS Investments 97A

By:____________________________              By:________________________________

Title:_________________________              Title:_____________________________

WS Investments 98A

By:____________________________

Title:_________________________

Aaron Ross                                   Alison Ross

_______________________________              ___________________________________

Catherine Ross                               David Ross

_______________________________              ___________________________________

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

Bert L. Zaccaria                            Arlene B. Tenenbaum and Joshua B.
                                            Tenenbaum as Trustees of the Jay M.
_________________________________           Tenenbaum Technology Trust

                                            By:_________________________________

                                            Title:______________________________

Anne Marie Jasse & Bruce Fram,              Byron A. Gregerson
Community Property

By:______________________________           ____________________________________

Title:___________________________

Isaac Stein and Madelein Johnson Stein,     Ken Goldman
Trustees of the Stein 1995 Revocable Trust

By:______________________________           ____________________________________

Title:___________________________

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

<TABLE>
<S>                                                         <C>
Intel 64 Fund, LLC                                          Intel Corporation
By: Intel 64 Fund Operations, Inc.,
    its Coordinating Member                                    By:_____________________________________________________________
                                                               Name:___________________________________________________________
                                                               Title:__________________________________________________________
    By:_____________________________________________
        Arvind Sodhani
        Vice President and Treasurer

Chancellor Private Capital Partners III, L.P.               Citiventure 96 Partnership, L.P.
By: CPCP Associates, L.P., its General Partner              By: INVESCO Private Capital, Inc., as
By: INVESCO Private Capital, Inc., its General Partner      Investment Advisor and Attorney-in-Fact

By:_________________________________________________        By:________________________________________________________________
    Name:___________________________________________           Name:___________________________________________________________
    Title:__________________________________________           Title:__________________________________________________________

Chancellor Private Capital Offshore Partners II, L.P.       Chancellor Private Capital Offshore Partners I, C V
By: CPCO Associates, L.P., its Investment General Partner   By: Chancellor KME IV, L.P., its Investment General Partner
By: INVESCO Private Capital, Inc., its General Partner      By: INVESCO Private Capital, Inc., its General Partner

By:__________________________________________________       By:________________________________________________________________
    Name:____________________________________________          Name:___________________________________________________________
    Title:___________________________________________          Title:__________________________________________________________

Cambridge Technology Capital                                SAP America, Inc.

    By:______________________________________________
    Name:____________________________________________          By:_____________________________________________________________
    Title:___________________________________________          Name:___________________________________________________________
                                                               Title:__________________________________________________________
</TABLE>

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

THE SHAREHOLDERS:
----------------

The Kenneth Ross Trust dated              Kenneth Ross, Trustee of the Ross ACD
December 3, 1980                          Irrevocable Trust

By:___________________________________    By:__________________________________
   Kenneth Ross, Trustee                     Kenneth Ross, Trustee

Kenneth Ross, Trustee of the Ross BMR     Kenneth Ross, Trustee of the Ross EAR
Irrevocable Trust dated August 13, 1997   Irrevocable Trust dated July 29, 1999

By:___________________________________    By:__________________________________
   Kenneth Ross, Trustee                     Kenneth Ross, Trustee

Gregory R. Olsen                          Kimberly P. Weins

______________________________________    _____________________________________

                      [SIGNATURE PAGE TO EXTRICITY, INC.
                  FIFTH RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

                                    EXHIBIT A

                                                           [SUBJECT TO REVISION]

                                List of Investors
                                -----------------

<TABLE>
<CAPTION>
                                          No. of         No. of           No. of          No. of         No. of          No. of
                                        Shares of       Shares of       Shares of       Shares of      Shares of       Shares of
                                         Series A       Series B         Series C        Series D       Series E        Series F
                                        Stock Held     Stock Held       Stock Held      Stock Held     Stock Held      Stock Held
                                        ----------    -----------       ----------      ----------     ----------     ------------
<S>                                     <C>           <C>               <C>             <C>           <C>             <C>
Charter Growth Capital II, L.P.                0               0               0               0                  0      1,767,442
525 University Avenue
Suite 1500
Palo Alto, CA 94301
Tel: 650-325-6953
Fax: 650-325-8811
Email: george@charterventures.com
       --------------------------

CGC Investors II QP, L.P.                      0               0               0               0                  0         69,767
525 University Avenue
Suite 1500
Palo Alto, CA 94301
Tel: 650-325-6953
Fax: 650-325-8811

CGC Investors II A, L.P.                       0               0               0               0                  0         23,256
525 University Avenue
Suite 1500
Palo Alto, CA 94301
Tel: 650-325-6953
Fax: 650-325-8811

Broadview Capital Partners                     0               0               0               0                  0      1,290,520
Qualified Purchaser Fund, L.P.
950 Tower Lane, 18th Floor
Foster City, CA 94404
Tel: 650-356-6000
Fax: 650-356-6001
Email:
sbachmann@broadviewcapital.com
------------------------------
bbarlow@broadviewcapital.com
----------------------------
dkapnick@broadviewcapital.com

Broadview Capital Partners, L.P.               0               0               0               0                  0        178,317
950 Tower Lane, 18th Floor
Foster City, CA 94404
Tel: 650-356-6000
Fax: 650-356-6001
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of          No. of          No. of          No. of        No. of          No. of
                                        Shares of       Shares of       Shares of        Shares of     Shares of       Shares of
                                         Series A        Series B        Series C        Series D      Series E        Series F
                                        Stock Held      Stock Held      Stock Held      Stock Held    Stock Held      Stock Held
                                        ----------      ----------      ----------      ----------    -----------     ----------
<S>                                     <C>             <C>             <C>             <C>           <C>             <C>
Broadview Capital Partners                     0               0               0               0                  0       71,705
Affiliates Fund, LLC
950 Tower Lane, 18th Floor
Foster City, CA 94404
Tel: 650-356-6000
Fax: 650-356-6001

Broadview BCPSBS Fund, L.P.                    0               0               0               0                  0        9,845
950 Tower Lane, 18th Floor
Foster City, CA 94404
Tel: 650-356-6000
Fax: 650-356-6001

AspenTech                                      0               0               0               0                  0      310,077
____________________________________
____________________________________
____________________________________
Email: lisa.zappala@aspentech.com
       --------------------------
larry_evans@aspentech.com

WingSpring, L.L.C.                             0               0               0               0                  0      155,039
2370 Watson Court, Suite 200
Palo Alto, CA 94303
Tel: 650-843-9800
Fax: 650-843-3660
Attn: Timothy F. Tasch
Email: timt@wingspring.com
       -------------------

Manugistics                                    0               0               0               0                  0      155,039
____________________________________
____________________________________
____________________________________

Email:  rrajajo@manu.com
        ----------------------------

GCWF Investment Partners II                    0               0               0               0                  0        7,752
400 Hamilton Avenue
Palo Alto, CA 94301-1825
Tel: 650-833-2000
Fax: 650-327-3699
Attn: Peggy Hone
Email: phone@graycary.com
       ------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                        No. of         No. of          No. of          No. of         No. of          No. of
                                      Shares of      Shares of       Shares of       Shares of       Shares of      Shares of
                                       Series A       Series B        Series C        Series D       Series E        Series F
                                      Stock Held     Stock Held      Stock Held      Stock Held     Stock Held      Stock Held
                                      ----------     ----------      ----------      ----------     ----------      ----------
<S>                                   <C>            <C>             <C>             <C>            <C>             <C>
TCV IV, L.P.                                   0               0               0               0             0        1,079,884
Technology Crossover Ventures
575 High Street, Suite 400
Palo Alto, CA 94301
Attn: Carla S. Newell
Tel: 650-614-8210
Fax: 650-614-8222
Email: bseawell@tcv.com
       ----------------
       kschwan@tcv.com
       ---------------

with a copy to:
Technology Crossover Ventures
56 Main Street, Suite 210
Millburn, NJ 07041
Attn: Robert C. Bensky
Tel: 973-467-5320
Fax: 973-467-5323

RRE Investors, L.P.                            0               0         402,826          87,301        62,571                0
126 East 56/th/ Street
New York, NY 10022
Attn: Andrew L. Zalasin
Tel: 212-418-5100
Fax: 212-355-0330
E-mail: alz@rre.com

RRE Investors Fund, L.P.                       0               0         221,774          48,063        34,448
P. O. Box 31106 SMB
West Bay Road, Grand Cayman
Cayman Islands, B.W.I.
Fax: 345-949-3877

Bay Partners SBIC, L.P.                  800,000         327,273         131,791          87,812       161,355          264,900
10600 No. DeAnza Blvd.
Suite 100
Cupertino, CA 95014-2031
Attn: Neil Dempsey
Tel: 408-725-2444
Fax: 408-446-4502
E-mail: mty@baypartners.com
        -------------------
        neal@baypartners.com
        --------------------

Bay Partners LS Fund, L.P.                     0               0               0               0     1,018,330                0
10600 No. DeAnza Blvd., Suite 100
Cupertino, CA 95014-2031
Attn: Neil Dempsey
Tel: 408-725-2444
Fax: 408-446-4502
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of         No. of           No. of          No. of         No. of          No. of
                                        Shares of       Shares of       Shares of       Shares of      Shares of       Shares of
                                         Series A       Series B         Series C        Series D       Series E        Series F
                                        Stock Held     Stock Held       Stock Held      Stock Held     Stock Held      Stock Held
                                        ----------    -------------     ----------      ----------    -----------     -----------
<S>                                     <C>           <C>               <C>             <C>           <C>             <C>
Telos Venture Partners, L.P.             800,000         327,273         131,791          87,812          161,355          195,258
2350 Mission College Blvd.,
Suite 1070
Santa Clara, CA 95054
Attn: Bruce Bourbon
Tel: 408-982-5800
Fax: 408-982-5880
E-mail: Bourbon@telosvp.com
        -------------------
        srooney@telosvp.com
        -------------------

Vector Capital, L.P.                     250,000          72,727          37,730          25,140           46,194           55,900
c/o Vector Capital Partners, LLC -
General Partner
Attn: Alex Slusky
456 Montgomery Street
San Francisco, CA 94104
Tel: 415-293-5000
Fax: 415-293-5100
E-mail: alex@vectorcapital.com
        -----------------------

Piper Jaffray Technology Capital               0         500,000          58,456          38,949           19,756                0
SBIC, L.P.
Attn: Marco Demiros
2500 Sand Hill Road, Suite 200
Menlo Park, CA 94025
Tel: 650-233-2294
Fax: 650-561-9127
E-mail: mdemiroz@pjc.com
        ----------------
        vnguyen@pjc.com  (Asst.)
        ---------------

Liberty Environmental Partners, L.P.           0          54,545           6,377           4,249                0                0
220 Montgomery Street, Penthouse 10
San Francisco, CA 94014
Attn: Donald C. Hichens
Tel: 415-834-1600
Fax: 415-834-1603
Email:
donald.c.hichens@us.pwcglobal.com
---------------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                        No. of         No. of          No. of          No. of         No. of         No. of
                                      Shares of      Shares of        Shares of       Shares of     Shares of       Shares of
                                       Series A       Series B        Series C        Series D       Series E       Series F
                                      Stock Held     Stock Held      Stock Held      Stock Held     Stock Held     Stock Held
                                      ----------    ------------     ----------      ----------    -----------     ------------
<S>                                   <C>           <C>               <C>             <C>           <C>             <C>
Donald C. Hichens                              0               0               0               0         4,344            9,448
2 Britton Avenue
Belvedere, CA 94942
Tel: 415-834-1600
Fax: 415-834-1603
Email:
donald.c.hichens@us.pwcglobal.com
---------------------------------

Timothy A. Woodward                            0               0               0               0         3,462                0
937 Lake Street
San Francisco, CA 94118
Tel: 415-974-1668
Fax: 415-974-0608
E-mail: twoodward@mthfund.com
        ----------------------

Brendan Joseph Cassin Trustee of          25,000           8,635           3,932           2,620         4,814            5,826
the Robert Sean Cassin Trust U/D/T
dated 2/20/97
3000 Sand Hill Road, Suite 3-210
Menlo Park, CA 94025
Tel: 650-854-7990
Fax: 650-854-4547
E-mail: bicassin@earthlink.net
        ----------------------
        bobbi@zaccaria.com
        ----------------------
        (Bobbi Dolan, Asst.)

Brendan Joseph Cassin and Isabel B.      250,000          86,353          39,323          26,201       101,833           61,932
Cassin, Trustees of the Cassin
Family Trust U/T/D dated January
31, 1996
3000 Sand Hill Road, Suite 3-210
Menlo Park, CA 94025
Tel: 650-854-7990
Fax: 650-854-4547

Saint Francis Growth Fund                 25,000           8,635           3,932           2,620         4,814            5,826
c/o Saint Francis High School
Attn: James S. Bowler
1885 Miramonte Avenue
Mountain View, CA 94040
Tel: 650-968-1213
Fax: 650-968-3241
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                           No. of        No. of          No. of          No. of         No. of         No. of
                                         Shares of     Shares of        Shares of       Shares of     Shares of       Shares of
                                          Series A      Series B        Series C        Series D       Series E       Series F
                                        Stock Held     Stock Held      Stock Held      Stock Held     Stock Held     Stock Held
                                        ----------    -----------      -----------     -----------    ----------     ------------
<S>                                     <C>           <C>              <C>             <C>             <C>          <C>
Saint Mary's College of California        25,000           8,635           3,932           2,620            4,814        5,826
1928 St. Mary's Road, Moraga,
CA 94556
P.O. Box 3554, Moraga, CA 94575
Attn: Kristine Chase
Tel: 925-631-4000
E-mail:  sneward@stmarys-ca.edu
         ----------------------
(Sharon Neward, Asst.)

Stanford University                       25,000           8,635           3,932           2,620            4,814        5,826
2770 Sand Hill Road
Menlo Park, CA 94025
Attn: Carol Gilmer
Tel: 650-926-0200
Fax: 650-854-9267
E-mail: cgilmer@stanford.edu
        --------------------

Eagle Ventures II, LLC                         0           9,087           1,062           1,162            1,355            0
c/o Crescendo Ventures
Attn: R. David Spreng
800 LaSalle Avenue, Suite 2250
Minneapolis, MN 55402
Tel: 612-607-2800
Fax: 612-607-2801
E-mail: dspreng@crescendoventures.com
        ------------------------------

Crescendo II, L.P.                             0         245,458          28,697          84,148          101,833       55,972
c/o Crescendo Ventures
Attn: R. David Spreng
800 LaSalle Avenue, Suite 2250
Minneapolis, MN 55402
Tel: 612-607-2800
Fax: 612-607-2801

Ronald P. Antipa                          10,000           3,454           1,573           1,048            1,926        2,330
c/o BT Alex. Brown Incorporated
101 California Street, 46th Floor
San Francisco, CA 94111
Tel: 415-544-2896
Fax: 415-732-3060
E-mail: Ronald.Antipa@db.com
        --------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of                          No. of          No. of         No. of
                                        Shares of     No. of Shares     Shares of       Shares of       Shares of   No. of Shares
                                         Series A      of Series B       Series C        Series D       Series E    of Series F
                                        Stock Held      Stock Held      Stock Held      Stock Held     Stock Held   Stock Held
                                        ----------    -------------     ----------      ----------     ----------   -------------
<S>                                     <C>           <C>              <C>             <C>             <C>          <C>
Ray Bingham                               15,000           5,181           2,359           1,572            2,889            3,496
c/o Cadence Design Systems, Inc.
2655 Seely, Building 5
San Jose, CA 95134
Tel: 408-943-1234
Fax: 408-435-9585
E-mail: bingham@cadence.com
        -------------------

James A. Chafoulias                            0           7,271           2,019           1,345            1,274            1,542
155 Irving Avenue North
Minneapolis, MN 55405
Tel: 612-374-2280
Fax: 612-374-5982

Joe Costello                              30,000          10,362           4,719           3,144            5,777            6,991
Think3
2880 Lakeside Drive, Suite 250
Santa Clara, CA 95054
Tel: 408-987-2200
Fax: 408-727-0235
E-mail: joe.costello@think3.com
        ------------------------

Gerald C. Down                            10,000           3,454           1,573           1,048            2,926            2,399
2882 Sand Hill Road, #200
Menlo Park, CA 94025
Tel: 650-853-6142
Fax: 650-853-6183
E-mail: gerald.c.down@rssmb.com
        ------------------------

Larry G. Gerdes                           10,000           3,454           1,573           1,048            1,926            2,330
3353 Peachtree Road, Suite 1030
Atlanta, GA 30326
Tel: 404-240-8585
Fax: 404-240-8586
E-mail: Larry.Gerdes@trcr.com
        ----------------------

Jeffrey O. Henley & Judy Henley           15,000           5,181           2,359           1,572                0            6,235
TTEEs, Jeffrey and Judy Henley
Trust I dtd 10/23/89 51 Monte Vista
Atherton, CA 94027 Tel: 650-506-5678
Email: uu:smontoya@us.oracle.com
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of                          No. of          No. of         No. of
                                        Shares of     No. of Shares     Shares of       Shares of       Shares of   No. of Shares
                                         Series A      of Series B       Series C        Series D       Series E    of Series F
                                        Stock Held      Stock Held      Stock Held      Stock Held     Stock Held   Stock Held
                                        ----------    -------------     ----------      ----------     ----------   -------------
<S>                                     <C>           <C>              <C>             <C>             <C>          <C>
Paul K. Joas                              20,000          15,999           4,209           2,804             5,153           6,235
c/o Dain Bosworth Inc.
60 South 6th Street, 11th Floor
Minneapolis, MN 55402
Tel: 612-371-7998
Fax: 612-371-2722
E-mail: pkjoas@dainrausher.com
        ----------------------
jhewitt@dainrauscher.com
------------------------

Donald L. Lucas, SUCC TTEE Donald         50,000          17,271           7,865           5,240             9,629          11,652
L. Lucas Profit Sharing
Trust DTD 1/1/84
3000 Sand Hill Road/Bldg. 3, Suite 210
Menlo Park, CA 94025
Tel: 650-854-4223
Fax: 650-854-4547
E-mail: Fances@bodl.com or
        ---------------
        Melissa@bodl.com
        ----------------
        (associates)

Richard M. Lucas Cancer Foundation        65,000          22,452          10,224           6,812            12,518          15,148
Attn: Donald L. Lucas
3000 Sand Hill Road/Bldg. 3,
Suite 210
Menlo Park, CA 94025
Tel: 650-854-4223
Fax: 650-854-4547

Motete Corporation                        25,000           8,635           3,932           2,620                 0           5,497
P. O. Box 8052
Panama City 7, Panama
Attn: Gabriel de la Guardia
Tel: 011-507-270-1164
Fax: 011-507-226-5758
Email: gdelagua@pty.com
       ----------------
Alberto Perez                             25,000           8,635           3,932           2,620                 0           5,497
El Arreo, S.A.
Next to Intel
La Ribera de Belen
Heredia, Costa Rica [use DHL service]
Tel: 011-506-239-0618
Fax: 011-506-239-0402
E-mail: crceesa@sol.racsa.co.cr
         ----------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of                          No. of          No. of         No. of
                                        Shares of     No. of Shares     Shares of       Shares of       Shares of   No. of Shares
                                         Series A      of Series B       Series C        Series D       Series E    of Series F
                                        Stock Held      Stock Held      Stock Held      Stock Held     Stock Held   Stock Held
                                        ----------    -------------     ----------      ----------     ----------   -------------
<S>                                     <C>           <C>              <C>             <C>             <C>          <C>
Noel Rahn                                 50,000          10,000           5,846           3,895            10,255          10,240
c/o Rahn Group
3355 U.S. Bank Place
601 - Second Avenue South/
Suite 3355
Minneapolis, MN 55402
Tel: 612-343-7000
Fax: 612-343-7001
E-mail: Mrahn@rahn.com
        --------------
        (associate)

Royal Wulff Investment Group              60,000               0               0               0                 0               0
720 University Avenue, Suite 103
Palo Alto, CA 94301
Tel: 650-833-4980
Fax: 650-833-4983

RWI Group II, L.P.                             0          38,907          11,564          42,301            18,302          22,148
720 University Avenue, Suite 103
Palo Alto, CA 94301
Tel: 650-833-4980
Fax: 650-833-4983
E-mail: jbarek@rwigroup.com
        -------------------
        dlucas@rwigroup.com
        -------------------
Sand Hill Financial Company              250,000          86,353          39,323          26,201                 0          54,968
3000 Sand Hill Road, Suite 3-210
Menlo Park, CA 94025
Tel: 415-854-4223
Fax: 415-854-4547
E-mail: Frances@bodl.com
        ----------------
Gregory V. Vaughan                        15,000           5,181           2,359           1,572             2,889               0
Morgan Stanley & Co.
555 California St.
San Francisco, CA 94104
Tel: 415-576-2152
Fax: 415-576-2361
E-mail: gregory.vaughan@msdw.com
        ------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of                          No. of          No. of         No. of
                                        Shares of     No. of Shares     Shares of       Shares of       Shares of   No. of Shares
                                         Series A      of Series B       Series C        Series D       Series E    of Series F
                                        Stock Held      Stock Held      Stock Held      Stock Held     Stock Held   Stock Held
                                        ----------    -------------     ----------      ----------     ----------   -------------
<S>                                     <C>           <C>              <C>             <C>             <C>          <C>
F & W Investments 1996                    30,000               0               0               0                 0               0
Two Palo Alto Square
Palo Alto, CA 94306
Attn: Joel D. Kellman (out of
office for 2 wks)
      Laird Simons
Tel: 650-494-0600
Fax: 650-494-1417
E-mail: lsimons@fenwick.com
        -------------------

F & W Investments 1996 - II                    0          10,362               0               0                 0               0
Two Palo Alto Square
Palo Alto, CA 94306
Attn: Joel D. Kellman
Tel: 650-494-0600
Fax: 650-494-1417

F & W Investments 1997                         0               0           4,719               0                 0               0
Two Palo Alto Square
Palo Alto, CA 94306
Attn: Joel D. Kellman
Tel: 650-494-0600
Fax: 650-494-1417

F & W Investments 2000                         0               0               0               0             5,401               0
Two Palo Alto Square
Palo Alto, CA 94306
Attn: Joel D. Kellman
Tel: 650-494-0600
Fax: 650-494-1417

F & W Investments 2000 II                      0               0               0               0                 0           6,535
Two Palo Alto Square
Palo Alto, CA 94306
Attn: Joel D. Kellman
Tel: 650-494-0600
Fax: 650-494-1417

WS Investments 96A                        15,000               0               0               0                 0               0
Attn: James Terranova
650 Page Mill Road
Palo Alto, CA 94304-1050
Tel: 650-493-9300
Fax: 650-493-6811
E-mail: jterranova@wsgr.com
        --------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of        No. of         No. of          No. of         No. of        No. of
                                        Shares of      Shares of      Shares of       Shares of      Shares of     Shares of
                                         Series A       Series B       Series C        Series D       Series E      Series F
                                        Stock Held     Stock Held     Stock Held      Stock Held     Stock Held     Stock Held
                                       -----------     ----------     ----------     -----------     -----------    ----------
<S>                                    <C>             <C>            <C>            <C>             <C>            <C>
WS Investments 97A                             0           3,786               0               0               0             0
650 Page Mill Road
Palo Alto, CA 94304-1050
Tel: 650-493-9300
Fax: 650-493-6811

WS Investments 98A                             0               0           2,196               0               0             0
650 Page Mill Road
Palo Alto, CA 94304-1050
Tel: 650-493-9300
Fax: 650-493-6811

Anne Marie Jasse & Bruce Fram                  0           9,091           1,063               0               0         1,389
645 Upland Road
Redwood City, CA 94062
Attn: Bruce Fram
Tel: 650-298-7002
Fax: 650-556-1731
E-mail: bfram@luminate.com
        ------------------

Byron A. Gregerson                        10,000           3,454           1,573           1,048           1,000         2,267
908 Chituras
Modesto, CA 95355
Tel: 209-523-3300
Fax: 209-523-3399
E-mail: Thayer_Harvey@msn.com
        ----------------------

Isaac Stein and Madeline Johnson          10,000           3,454           1,573           1,048           5,092         2,547
Stein, Trustees of the Stein 1995
Revocable Trust
c/o Waverly Associates
525 University Avenue, Suite 700
Palo Alto, CA 94301
Tel: 650-324-1245
E-mail: isaac@steinfamily.com
       ---------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of        No. of         No. of          No. of         No. of        No. of
                                        Shares of      Shares of      Shares of       Shares of      Shares of     Shares of
                                         Series A       Series B       Series C        Series D       Series E      Series F
                                        Stock Held     Stock Held     Stock Held      Stock Held     Stock Held     Stock Held
                                       -----------     ----------     ----------     -----------     -----------    ----------
<S>                                    <C>             <C>            <C>            <C>             <C>            <C>
Arlene B. Tenenbaum and Joshua B.         50,000               0               0               0                  0            6,839
Tenenbaum as Trustees of the Jay M.
Tenenbaum Technology Trust
c/o Arlene B. Tenenbaum and Joshua
B. Tenenbaum, Trustees
25 El Hambra Court
Portola Valley, CA 94025
Tel: 650-493-8608
E-mail: jmt@commerceone.com
        --------------------
marty.tennenbaum@commerceone.com

Bert L. Zaccaria                               0          18,182           2,126           1,416              2,603            3,149
3000 Sand Hill Road, Suite 3-210
Menlo Park, CA 94025
Tel: 650-854-1203
Fax: 650-854-2019
E-mail: Bert@zaccaria.com
        -----------------

Aaron Ross                                 5,000           1,819             797               0                  0                0
76 Ridgeview Drive
Atherton. CA 94027
Tel: 650-854-1700
Fax: 650-854-8579
E-mail: aross@equipmentleasing.com
        --------------------------

Alison Ross                               75,000          13,637          10,363               0                  0           13,361
76 Ridgeview Drive
Atherton, CA 94027
Tel: 650-854-1700
Fax: 650-854-8579
E-mail: aross@smartfinance.com
        -----------------------

Catherine Ross                             5,000           1,819             797               0                  0            1,028
76 Ridgeview Drive
Atherton, CA 94027
Tel: 650-854-1700
Fax: 650-854-8579
E-mail: Catherine.Ross@springstreet.com
        --------------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of        No. of         No. of          No. of         No. of        No. of
                                        Shares of      Shares of      Shares of       Shares of      Shares of     Shares of
                                         Series A       Series B       Series C        Series D       Series E      Series F
                                        Stock Held     Stock Held     Stock Held      Stock Held     Stock Held     Stock Held
                                       -----------     ----------     ----------     -----------     -----------    ----------
<S>                                    <C>             <C>            <C>            <C>             <C>            <C>
David Ross                                 5,000           1,819             797               0                  0            1,028
76 Ridgeview Drive
Atherton, CA 94027
Tel: 650-854-1700
Fax: 650-854-8579
E-mail: David.Ross@avon.com
        --------------------

Cambridge Technology Capital                   0               0          98,039           6,838            101,833           21,309
11512 El Camino Real, Suite 215
San Diego, CA 92130-2046
Attn: Barry Rosenbaum
Tel: 619-259-7869
E-mail: lsilbe@ctp.com
        --------------
        barryr@ctp.com
        ---------------

Intel Corporation                              0               0         294,118               0                  0                0
2200 Mission College Boulevard
Santa Clara, CA 95052
Attn: Portfolio Manager RN6-46
Tel: 408-765-5636
Fax: 408-765-6038
E-mail: tamiko.hutchinson@intel.com
        ----------------------------
kevin.p.voong@intel.com

Copy to: Intel Corporation
2200 Mission College Boulevard
Santa Clara, CA 95052
Attn: General Counsel
Fax: 408-765-1859

Intel 64 Fund, LLC                             0               0               0         253,807                  0          252,437
2200 Mission College Boulevard
Santa Clara, CA 95052
Attn: Portfolio Manager RN6-37
Fax: 408-765-6038
Email: sean.d.doyle@intel.com
       ----------------------
lyen@mofo.com

Copy to: Intel Corporation
2200 Mission College Boulevard
Santa Clara, CA 95052
Attn: General Counsel
Fax: 408-765-1859
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of        No. of         No. of          No. of         No. of            No. of
                                        Shares of      Shares of      Shares of       Shares of      Shares of         Shares of
                                         Series A       Series B       Series C        Series D       Series E          Series F
                                        Stock Held     Stock Held     Stock Held      Stock Held     Stock Held        Stock Held
                                       -----------     ----------     ----------     -----------     ----------        ----------
<S>                                    <C>             <C>            <C>            <C>             <C>               <C>
SAP America, Inc.                              0               0         196,078               0              0                 0
3999 Westchester Pike
Newtown Square, PA  19073
Attn:  General Counsel
E-mail: Torsten.Geers@sap.com
        ----------------------
howard.lau@sap-ag.de

                                                                                                                          620,155
SAP - AG

_______________________________
_______________________________
_______________________________
_______________________________

Ken Goldman                                    0               0               0          12,690              0             1,736
@home Network
425 Broadway
Redwood City, CA 94063
Tel: 650-569-5000
E-mail: yap@corp.home.net
        -----------------

Chancellor Private Capital Partners            0               0          22,538          42,978         14,727           109,389
III, L.P.
c/o Invesco Private Capital, Inc.
1166 Avenue of the Americas
New York, N.Y. 10036
Attn: Jean Ouyang
E-mail: jean_ouyang@invesco.com
        -----------------------

Citiventure 96 Partnership, L.P.               0               0          96,627         184,264         63,138           468,992
c/o Invesco Private Capital, Inc.
1166 Avenue of the Americas
New York, N.Y. 10036
Attn: Mark Radonvanovich or
Alessandro Piol

Chancellor Private Capital Offshore            0               0          37,089          70,728         24,235           180,018
Partners II, L.P.
c/o Invesco Private Capital, Inc.
1166 Avenue of the Americas
New York, N.Y. 10036
Attn: Mark Radonvanovich or
Alessandro Piol
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of        No. of         No. of          No. of         No. of        No. of
                                        Shares of      Shares of      Shares of       Shares of      Shares of     Shares of
                                         Series A       Series B       Series C        Series D       Series E      Series F
                                        Stock Held     Stock Held     Stock Held      Stock Held     Stock Held     Stock Held
                                       -----------     ----------     ----------     -----------     -----------    ----------
<S>                                    <C>             <C>            <C>            <C>             <C>            <C>
Chancellor Private Capital Offshore              0             0           3,460           6,599           2,261        16,795
Partners I, C V
c/o Invesco Private Capital, Inc.
1166 Avenue of the Americas
New York, N.Y. 10036
Attn: Mark Radonvanovich or
Alessandro Piol

Jeff Becker                                      0             0               0               0               0         1,085
21 Boulderwood Drive
Livingston, NJ 07039
Tel: 973-535-8899
Fax: 973-535-6337
Email: jeff_becker@rsco.com
       --------------------

Anna Brady                                       0             0               0               0               0           620
1851 Pine Street
San Francisco, CA 94104
Tel: 415-346-3954
Fax: 415-676-2633
Email: anna_brady@rsco.com
       --------------------

Thomas S. Champion                               0             0               0               0               0           465
1884 Greenwich Street, Apt. 702
San Francisco, CA 94128
Tel: 415-929-2547
Email: tschampion@hotmail.com
       ----------------------

Mark Edwards                                     0             0               0               0               0           930
101 Buckingham Avenue
San Dimas, CA 91773
Tel: 909-599-4066
Email: edwards1m@hotmail.com
       ----------------------

Maureen Dorney                                   0             0               0               0               0           775
870 Los Robles Avenue
Palo Alto, CA 94306
Tel: 650-833-2177
Fax: 650-327-3699
Email: mdorney@graycary.com
       --------------------

Atesa Farshian                                   0             0               0               0               0            620
1206 Canterbury Road
Hillsborough, CA 94010
Tel: 415-676-2557
Fax: 415-693-3448
Email: atesa_farshian@rsco.com
       ------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of        No. of         No. of          No. of         No. of        No. of
                                        Shares of      Shares of      Shares of       Shares of      Shares of     Shares of
                                         Series A       Series B       Series C        Series D       Series E      Series F
                                        Stock Held     Stock Held     Stock Held      Stock Held     Stock Held     Stock Held
                                       -----------     ----------     ----------     -----------     ----------     ----------
<S>                                    <C>             <C>            <C>            <C>             <C>            <C>
Paul Friday                                    0               0               0               0              0            930
1020 Lexington Avenue
4th Floor
New York, NY 10021
Tel: 212-407-0467
Fax: 212-407-0486
Email: paul_Friday@rsco.com
       --------------------

Gregory M. Gallo                               0               0               0               0              0            775
572 Ringwood Avenue
Menlo Park, CA 94025
Tel: 650-833-2020
Fax: 650-617-5667
Email: ggallo@graycary.com
       -------------------

Ashley Marks                                   0               0               0               0              0            465
1430 Clay Street
San Francisco, CA 94109
Tel: 415-885-1101
Email: ashley_marks@rsco.com
       ---------------------

Lisa McClure                                   0               0               0               0              0            930
c/o Robertson Stephens
One International Place
Boston, MA 02110
Tel: 617-526-7425
Fax: 617-526-7488
Email: lisa_mcclure@rsco.com
       ---------------------

Sara Michel                                    0               0               0               0              0            307
522 East 85th, 2E
New York, NY 10028
Tel: 212-628-1276 and
      212-407-0460
Fax: 212-610-6125
Email: sara_michel@rsco.com
       ---------------------

Phuonglien Nguyen                              0               0               0               0              0            465
c/o Robertson Stephens
One International Place
30th Floor
Boston, MA 02110
Tel: 617-526-7424
Fax: 617-526-7410
Email: phuonglien_nguyen@rsco.com
       --------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of        No. of         No. of          No. of         No. of        No. of
                                        Shares of      Shares of      Shares of       Shares of      Shares of     Shares of
                                         Series A       Series B       Series C        Series D       Series E      Series F
                                        Stock Held     Stock Held     Stock Held      Stock Held     Stock Held     Stock Held
                                       -----------     ----------     ----------     -----------     ----------     ----------
<S>                                    <C>             <C>            <C>            <C>             <C>            <C>
Darren Oberst                                  0               0               0               0              0          2,325
2030 Vallejo Street, #7E
San Francisco, CA 94123
Tel: 415-673-3177
Fax: 415-248-4042
Email: darren_oberst@rsco.com
       ----------------------

Narendra B. Patel                              0               0               0               0              0            775
400 Baltic Circle, #418
Redwood Shores, CA 94065
Tel: 650-833-2143
Fax: 650-327-3699
Email: npatel@graycary.com
       -------------------

Nimesh Patel                                   0               0               0               0              0            465
861 Sutter Street, #304
San Francisco, CA 94109
Tel: 415-248-4706
Fax: 415-248-4700
Email: nimesh_patel@rsco.com
       ---------------------

Greg Rickman                                   0               0               0               0              0            620
555 California Street
Suite 2600
San Francisco, CA 94104
Tel: 415-248-4348
Fax: 415-693-3393
Email: gregory_rickman@rsco.com
       -------------------------

James Schumacher                               0               0               0               0              0            465
400 Hamilton Avenue
Palo Alto, CA 94301-1825
Tel: 650-833-2197
Fax: 650-327-3699
Email: jschumacher@graycary.com
       -------------------------

Joe C. Sorenson                                0               0               0               0              0            775
1775 Holly Avenue
Menlo Park, CA 94025
Tel: 650-833-2282
Fax: 650-327-3699
Email: jsorenson@graycary.com
       -----------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          No. of        No. of         No. of          No. of         No. of        No. of
                                        Shares of      Shares of      Shares of       Shares of      Shares of     Shares of
                                         Series A       Series B       Series C        Series D       Series E      Series F
                                        Stock Held     Stock Held     Stock Held      Stock Held     Stock Held     Stock Held
                                       -----------     ----------     ----------     -----------     ----------     ----------
<S>                                    <C>             <C>            <C>            <C>             <C>            <C>
Peter Tran                                     0               0               0               0              0            930
36849 Port Sailwood Drive
Newark, CA 94560
Tel: 415-248-4377
Fax: 415-248-4042

William Stephen Westermann, Jr.                0               0               0               0              0          1,085
668 Greenwich Street, #343
New York, NY 10014
Tel: 415-676-2837
Fax: 415-693-3520
Email: steve_westermann@rsco.com
       -------------------------

Totals                                 3,055,000       1,976,469       1,954,937       1,187,575      2,031,846
</TABLE>
<PAGE>

                                   EXHIBIT B

                             List of Shareholders
                             --------------------

<TABLE>
<CAPTION>
                                                                                Number of Shares
Name and Address                                                              of Common Stock Held
----------------                                                              ---------------------
<S>                                                                           <C>
The Kenneth Ross Trust dated December 3, 1980                                      1,870,000
76 Ridgeview
Atherton, CA 94027
Tel: (650) 364-4530
Fax: (650) 364-4562
Email: ken@rossmail.net
       ----------------

Kenneth Ross, Trustee of the
Ross ACD Irrevocable Trust                                                          300,000
76 Ridgeview
Atherton, CA 94027
Tel: (650) 364-4530
Fax: (650) 364-4562
Email: ken@rossmail.net
       ----------------

Kenneth Ross, Trustee of the
Ross BMR Irrevocable Trust dated August 13, 1997                                    100,000
76 Ridgeview
Atherton, CA 94027
Tel: (650) 364-4530
Fax: (650) 364-4562
Email: ken@rossmail.net
        ----------------

Kenneth Ross, Trustee of the
Ross EAR Irrevocable Trust dated July 29, 1999                                      100,000
76 Ridgeview
Atherton, CA 94027
Tel: (650) 364-4530
Fax: (650) 364-4562
Email:  ken@rossmail.net
        ----------------

Gregory R. Olsen                                                                    600,000
2124 Gordon Avenue
Menlo Park, CA 94025
Tel: (650) 364-4530
Fax: (650) 364-4562
Email: grego@extricity.com
       ----------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                                                                Number of Shares
Name and Address                                                              of Common Stock Held
----------------                                                              ---------------------
<S>                                                                           <C>
Kimberly Weins                                                                      150,000
2 Mosswood Way
Atherton, CA 94027
Tel: (650) 364-4530
Fax: (650) 364-4562
Email: kweins@annuncio.com
       --------------------
</TABLE>
<PAGE>

                                   EXHIBIT 5.1

                            SPECIAL PREFERRED HOLDERS
             (Holders of 5% or more of outstanding Preferred Stock)
              ----------------------------------------------------

                              [SUBJECT TO REVISION]

Charter Growth Capital II, L.P.

Broadview Capital Partners

RRE Investors, L.P.

RRE Investors Fund, L.P.

Bay Partners SBIC, L.P.

Bay Partners LS Fund, L.P.

Telos Venture Partners, L.P.

Piper Jaffray Technology Capital SBIC, L.P.

Brendan Joseph Cassin Trustee of the Robert Sean Cassin Trust U/D/T dated
2/20/97

Brendan Joseph Cassin and Isabel B. Cassin, Trustees of the Cassin Family Trust
U/T/D dated January 31, 1996

Chancellor Private Capital Partners III, L.P.

Citiventure 96 Partnership, L.P.

Chancellor Private Capital Offshore Partners II, L.P.

Chancellor Private Capital Offshore Partners I, C V

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]