Document:

EXTENSITY, INC.

                              AMENDED AND RESTATED
                       2000 NONSTATUTORY STOCK OPTION PLAN

                            ADOPTED ON AUGUST 8, 2000
                           AMENDED ON OCTOBER 17, 2000
                           AMENDED ON JANUARY 19, 2001
                            AMENDED ON APRIL 12, 2001
                     AMENDED AND RESTATED ON APRIL 11, 2002

1.       PURPOSES.

         (a) Eligible Stock Award  Recipients.  The persons  eligible to receive
Stock  Awards are  selected  Employees  and  Consultants  of the Company and its
Affiliates.

         (b)  Available  Stock  Awards.  The purpose of the Plan is to provide a
means by which  eligible  recipients of Stock Awards may be given an opportunity
to benefit from  increases in value of the Common Stock  through the granting of
the following Stock Awards: (i) Nonstatutory  Stock Options,  (ii) stock bonuses
and (iii) rights to acquire restricted stock.

         (c) General Purpose. The Company, by means of the Plan, seeks to retain
the services of the group of persons eligible to receive Stock Awards, to secure
and retain the  services of new members of this group and to provide  incentives
for such persons to exert maximum efforts for the success of the Company and its
Affiliates.

2.       DEFINITIONS.

         (a) "Affiliate" means any parent corporation or subsidiary  corporation
of the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f), respectively, of the Code.

         (b) "Board" means the Board of Directors of the Company.

         (c)  "Capitalization  Adjustment" has the meaning ascribed to that term
in Section 11(a).

         (d) "Change in Control" means the occurrence,  in a single  transaction
or in a series  of  related  transactions,  of any one or more of the  following
events:

                  (i) any  Exchange  Act Person  becomes the Owner,  directly or
indirectly,  of securities of the Company  representing  more than fifty percent
(50%) of the combined voting power of the Company's then outstanding  securities
other than by virtue of a merger, consolidation or similar transaction;

                  (ii) there is consummated a merger,  consolidation  or similar
transaction  involving  (directly or  indirectly)  the Company and,  immediately
after the consummation of such

                                       1.
<PAGE>

merger,  consolidation or similar  transaction,  the stockholders of the Company
immediately prior thereto do not Own, directly or indirectly, outstanding voting
securities   representing   more  than  fifty  percent  (50%)  of  the  combined
outstanding  voting power of the surviving Entity in such merger,  consolidation
or  similar  transaction  or more  than  fifty  percent  (50%)  of the  combined
outstanding  voting power of the parent of the surviving  Entity in such merger,
consolidation or similar transaction;

                  (iii) the  stockholders  of the  Company  approve or the Board
approves a plan of complete  dissolution  or  liquidation  of the Company,  or a
complete dissolution or liquidation of the Company shall otherwise occur;

                  (iv)  there is  consummated  a sale,  lease,  license or other
disposition  of all or  substantially  all of  the  consolidated  assets  of the
Company  and its  Subsidiaries,  other  than a sale,  lease,  license  or  other
disposition  of all or  substantially  all of  the  consolidated  assets  of the
Company and its Subsidiaries to an Entity,  more than fifty percent (50%) of the
combined  voting  power  of  the  voting   securities  of  which  are  Owned  by
stockholders  of the  Company in  substantially  the same  proportions  as their
Ownership of the Company immediately prior to such sale, lease, license or other
disposition; or

                  (v)  individuals  who, on the date this Plan is adopted by the
Board, are members of the Board (the "Incumbent  Board") cease for any reason to
constitute at least a majority of the members of the Board; (provided,  however,
that if the  appointment  or election (or  nomination  for  election) of any new
Board member was approved or  recommended  by a majority  vote of the members of
the Incumbent Board then still in office, such new member shall, for purposes of
this Plan, be considered as a member of the Incumbent Board).

         Notwithstanding  the foregoing or any other provision of this Plan, the
definition of Change in Control (or any analogous term) in an individual written
agreement  between  the  Company  or any  Affiliate  and the  Participant  shall
supersede the foregoing  definition with respect to Stock Awards subject to such
agreement  (it being  understood,  however,  that if no  definition of Change in
Control  or any  analogous  term is set  forth  in such  an  individual  written
agreement, the foregoing definition shall apply).

         (e) "Code" means the Internal Revenue Code of 1986, as amended.

         (f)  "Committee"  means a committee of one or more members of the Board
appointed by the Board in accordance with Section 3(c).

         (g) "Common Stock" means the common stock of the Company.

         (h) "Company" means Extensity, Inc., a Delaware corporation.

         (i) "Consultant" means any person, including an advisor, (i) engaged by
the Company or an Affiliate to render consulting or advisory services and who is
compensated  for such  services  or (ii)  serving  as a member  of the  Board of
Directors of an Affiliate and who is compensated for such services. However, the
term  "Consultant"  shall not include  Directors who are not  compensated by the
Company for their services as Directors,  and the payment of a

                                       2.
<PAGE>

director's  fee by the  Company  for  services  as a Director  shall not cause a
Director to be considered a "Consultant" for purposes of the Plan.

         (j) "Continuous Service" means that the Participant's  service with the
Company or an Affiliate,  whether as an Employee, Director or Consultant, is not
interrupted  or  terminated.  A change in the capacity in which the  Participant
renders  service to the Company or an Affiliate as an  Employee,  Consultant  or
Director  or a change  in the  entity  for which the  Participant  renders  such
service,   provided  that  there  is  no  interruption  or  termination  of  the
Participant's  service with the Company or an  Affiliate,  shall not terminate a
Participant's  Continuous  Service.  For  example,  a change in  status  from an
Employee of the Company to a Consultant of an Affiliate or a Director  shall not
constitute  an  interruption  of  Continuous  Service.  The  Board or the  chief
executive officer of the Company, in that party's sole discretion, may determine
whether  Continuous  Service shall be considered  interrupted in the case of any
leave of absence approved by that party, including sick leave, military leave or
any other personal  leave.  Notwithstanding  the  foregoing,  a leave of absence
shall be treated as Continuous  Service for purposes of vesting in a Stock Award
only to such extent as may be provided in the Company's  leave of absence policy
or in the written terms of the Participant's leave of absence.

         (k)  "Corporate   Transaction"  means  the  occurrence,   in  a  single
transaction  or in a series of related  transactions,  of any one or more of the
following events:

                  (i) a sale or other  disposition of all or substantially  all,
as determined by the Board in its discretion,  of the consolidated assets of the
Company and its Subsidiaries;

                  (ii) a sale or other  disposition  of at least ninety  percent
(90%) of the outstanding securities of the Company;

                  (iii) a merger, consolidation or similar transaction following
which the Company is not the surviving corporation; or

                  (iv) a merger,  consolidation or similar transaction following
which the Company is the  surviving  corporation  but the shares of Common Stock
outstanding   immediately   preceding  the  merger,   consolidation  or  similar
transaction are converted or exchanged by virtue of the merger, consolidation or
similar transaction into other property, whether in the form of securities, cash
or otherwise.

         (l) "Director" means a member of the Board of Directors of the Company.

         (m)  "Disability"  means the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

         (n)  "Employee"  means  any  person  employed  by  the  Company  or  an
Affiliate.  Service as a Director or payment of a director's  fee by the Company
or an  Affiliate  shall not be  sufficient  to  constitute  "employment"  by the
Company or an Affiliate.

         (o) "Entity" means a corporation, partnership or other entity.

         (p)  "Exchange  Act"  means the  Securities  Exchange  Act of 1934,  as
amended.

                                       3.
<PAGE>

         (q) "Exchange Act Person" means any natural  person,  Entity or "group"
(within the meaning of Section 13(d) or 14(d) of the Exchange Act),  except that
"Exchange Act Person" shall not include (A) the Company or any Subsidiary of the
Company,  (B) any employee  benefit plan of the Company or any Subsidiary of the
Company or any trustee or other fiduciary  holding  securities under an employee
benefit plan of the Company or any Subsidiary of the Company, (C) an underwriter
temporarily  holding securities  pursuant to an offering of such securities,  or
(D) an Entity Owned, directly or indirectly,  by the stockholders of the Company
in  substantially  the  same  proportions  as  their  Ownership  of stock of the
Company.

         (r) "Fair Market Value" means,  as of any date, the value of the Common
Stock determined as follows:

                  (i) If the  Common  Stock is listed on any  established  stock
exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap  Market,
the Fair Market  Value of a share of Common  Stock  shall be the  closing  sales
price for such stock (or the closing  bid, if no sales were  reported) as quoted
on such  exchange or market (or the exchange or market with the greatest  volume
of trading in the Common Stock) on the day of  determination,  and if the day of
determination  was not a market trading day, then on the last market trading day
prior to the day of  determination,  as reported  in The Wall Street  Journal or
such other source as the Board deems reliable.

                  (ii) In the absence of such markets for the Common Stock,  the
Fair Market Value shall be determined in good faith by the Board.

         (s) "Nonstatutory Stock Option" means an Option not intended to qualify
as an incentive  stock option  within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.

         (t)  "Officer"  means a person who is an officer of the Company  within
the  meaning  of Section 16 of the  Exchange  Act and the rules and  regulations
promulgated thereunder.

         (u) "Option" means a Nonstatutory  Stock Option granted pursuant to the
Plan.

         (v) "Option  Agreement" means a written  agreement  between the Company
and an Optionholder  evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

         (w) "Optionholder" means a person to whom an Option is granted pursuant
to the Plan or, if  applicable,  such  other  person  who  holds an  outstanding
Option.

         (x) "Own,"  "Owned,"  "Owner,"  "Ownership" A person or Entity shall be
deemed to "Own," to have  "Owned,"  to be the  "Owner"  of, or to have  acquired
"Ownership"  of  securities  if such person or Entity,  directly or  indirectly,
through any contract, arrangement, understanding, relationship or otherwise, has
or shares  voting  power,  which  includes  the  power to vote or to direct  the
voting, with respect to such securities.

         (y)  "Participant"  means a person  to whom a Stock  Award  is  granted
pursuant  to the  Plan  or,  if  applicable,  such  other  person  who  holds an
outstanding Stock Award.

                                       4.
<PAGE>

         (z) "Plan"  means this  Amended and Restated  2000  Nonstatutory  Stock
Option Plan.

         (aa) "Securities Act" means the Securities Act of 1933, as amended.

         (bb) "Stock Award" means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock.

         (cc) "Stock  Award  Agreement"  means a written  agreement  between the
Company and a holder of a Stock Award  evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

         (dd)  "Subsidiary"  means,  with  respect  to  the  Company,   (i)  any
corporation  of which more than fifty percent (50%) of the  outstanding  capital
stock having ordinary voting power to elect a majority of the board of directors
of such corporation  (irrespective  of whether,  at the time, stock of any other
class or classes of such  corporation  shall have or might have voting  power by
reason  of  the  happening  of any  contingency)  is at the  time,  directly  or
indirectly,  Owned by the Company, and (ii) any partnership in which the Company
has  a  direct  or  indirect   interest  (whether  in  the  form  of  voting  or
participation  in profits or capital  contribution)  of more than fifty  percent
(50%).

3. ADMINISTRATION.

         (a) Administration by Board. The Board shall administer the Plan unless
and until the Board  delegates  administration  to a  Committee,  as provided in
Section 3(c).

         (b) Powers of Board.  The Board  shall have the power,  subject to, and
within the limitations of, the express provisions of the Plan:

                  (i) To  determine  from  time to  time  which  of the  persons
eligible  under the Plan shall be granted Stock Awards;  when and how each Stock
Award shall be granted;  what type or  combination of types of Stock Award shall
be  granted;  the  provisions  of each Stock  Award  granted  (which need not be
identical),  including  the time or times when a person  shall be  permitted  to
receive  Common  Stock  pursuant to a Stock  Award;  and the number of shares of
Common  Stock with  respect to which a Stock Award shall be granted to each such
person.

                  (ii) To  construe  and  interpret  the Plan and  Stock  Awards
granted under it, and to establish,  amend and revoke rules and  regulations for
its  administration.  The Board, in the exercise of this power,  may correct any
defect,  omission or  inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem  necessary  or expedient to make the
Plan fully effective.

                  (iii)  To  amend  the Plan or a Stock  Award  as  provided  in
Section 12.

                  (iv) To  terminate  or suspend the Plan as provided in Section
13.

                  (v)  Generally,  to exercise  such powers and to perform  such
acts as the Board deems  necessary or expedient to promote the best interests of
the Company and that are not in conflict with the provisions of the Plan.

                                       5.
<PAGE>

         (c) Delegation to Committee.  The Board may delegate  administration of
the Plan to a Committee or  Committees  of one (1) or more members of the Board,
and the term  "Committee"  shall  apply to any  person or  persons  to whom such
authority has been delegated. If administration is delegated to a Committee, the
Committee  shall have, in connection  with the  administration  of the Plan, the
powers theretofore possessed by the Board,  including the power to delegate to a
subcommittee  any of the  administrative  powers the  Committee is authorized to
exercise (and  references  in this Plan to the Board shall  thereafter be to the
Committee  or  subcommittee),   subject,  however,  to  such  resolutions,   not
inconsistent  with the  provisions  of the Plan,  as may be adopted from time to
time by the Board. The Board may abolish the Committee at any time and revest in
the Board the administration of the Plan.

         (d) Effect of Board's Decision. All determinations, interpretations and
constructions  made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

4. SHARES SUBJECT TO THE PLAN.

         (a) Share Reserve.  Subject to the provisions of Section 11(a) relating
to  Capitalization  Adjustments,  the shares of Common  Stock that may be issued
pursuant to Stock  Awards  shall not exceed in the  aggregate  Two Million  Four
Hundred Thousand  (2,400,000) shares of Common Stock, plus an annual increase to
be added on the first day of the fiscal year of the Company,  commencing  on the
first day of the fiscal  year that  begins on January 1, 2002 (the  "Calculation
Date"),  equal to four percent (4%) of the shares of Common Stock outstanding on
each  such   Calculation  Date  (rounded  down  to  the  nearest  whole  share).
Notwithstanding the foregoing,  the Board may act, prior to the first day of any
fiscal  year of the  Company,  to increase  the share  reserve by such number of
shares of Common Stock as the Board shall determine,  which number shall be less
than 4% of the shares of Common Stock outstanding on the Calculation Date.

         (b) Reversion of Shares to the Share Reserve.  If any Stock Award shall
for any  reason  expire or  otherwise  terminate,  in whole or in part,  without
having been  exercised in full,  the shares of Common  Stock not acquired  under
such Stock Award shall revert to and again become  available for issuance  under
the Plan.

         (c) Source of Shares.  The shares of Common  Stock  subject to the Plan
may be unissued shares or reacquired shares, bought on the market or otherwise.

5. ELIGIBILITY.

         (a)  Eligibility  for Stock  Awards.  Stock  Awards  may be  granted to
Employees or Consultants who are not (i) Officers,  (ii) Directors,  or (iii) or
then subject to Section 16 of the Exchange Act;  provided,  however,  that Stock
Awards may be granted to persons  not  previously  employed by the Company as an
inducement  essential to those persons  entering into employment  contracts with
the Company,  including  persons who are  ultimately  employed by the Company as
Officers.

         (b) Consultants.  A Consultant shall not be eligible for the grant of a
Stock Award if, at the time of grant, a Form S-8  Registration  Statement  under
the Securities Act ("Form S-8") is

                                       6.
<PAGE>

not  available  to  register  either  the  offer  or the  sale of the  Company's
securities  to such  Consultant  because of the nature of the services  that the
Consultant is providing to the Company,  because the Consultant is not a natural
person,  or because of any other rule governing the use of Form S-8,  unless the
Company  determines  both (i) that such grant (A) shall be registered in another
manner under the Securities Act (e.g., on a Form S-3 Registration  Statement) or
(B) does not require  registration  under the  Securities Act in order to comply
with the  requirements of the Securities Act, if applicable,  and (ii) that such
grant complies with the securities laws of all other relevant jurisdictions.

6. OPTION PROVISIONS.

         Each  Option  shall be in such form and shall  contain  such  terms and
conditions  as the Board  shall deem  appropriate.  The  provisions  of separate
Options  need  not  be  identical,   but  each  Option  shall  include  (through
incorporation of provisions  hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

         (a) Term. No Option shall be  exercisable  after the  expiration of ten
(10) years from the date on which it was granted.

         (b) Exercise  Price.  The  exercise  price of each  Nonstatutory  Stock
Option  shall be not less than fifty  percent  (50%) of the Fair Market Value of
the  Common  Stock  subject  to the  Option on the date the  Option is  granted.
Notwithstanding  the foregoing,  a Nonstatutory Stock Option may be granted with
an exercise  price lower than that set forth in the  preceding  sentence if such
Option is granted  pursuant to an assumption or substitution  for another option
in a manner satisfying the provisions of Section 424(a) of the Code.

         (c) Consideration. The purchase price of Common Stock acquired pursuant
to an Option shall be paid, to the extent  permitted by applicable  statutes and
regulations,  either (i) in cash at the time the Option is  exercised or (ii) at
the  discretion  of the  Board  at  the  time  of the  grant  of the  Option  or
subsequently (1) by delivery to the Company of other Common Stock, (2) according
to a deferred payment or other similar arrangement with the Optionholder, (3) by
reduction in the amount of any Company liability to the Optionholder,  including
any  liability   attributable  to  the   Optionholder's   participation  in  any
Company-sponsored  deferred  compensation  program or  arrangement or (4) in any
other form of legal  consideration  that may be acceptable to the Board.  Unless
otherwise  specifically  provided in the Option,  the  purchase  price of Common
Stock acquired  pursuant to an Option that is paid by delivery to the Company of
other Common Stock acquired,  directly or indirectly from the Company,  shall be
paid only by shares of the Common  Stock of the Company  that have been held for
more than six (6) months (or such longer or shorter  period of time  required to
avoid a charge to earnings for financial accounting purposes).  At any time that
the Company is  incorporated  in  Delaware,  payment of the Common  Stock's "par
value," as defined in the Delaware General Corporation Law, shall not be made by
deferred payment.

         In the case of any  deferred  payment  arrangement,  interest  shall be
compounded  at least  annually  and  shall be  charged  at the  minimum  rate of
interest necessary to avoid (1) the treatment as interest,  under any applicable
provisions of the Code, of any amounts other than

                                       7.
<PAGE>

amounts stated to be interest under the deferred payment arrangement and (2) the
treatment of the Option as a variable award for financial accounting purposes.

         (d) Transferability.  A Nonstatutory Stock Option shall be transferable
to the extent provided in the Option Agreement. If the Nonstatutory Stock Option
does not provide for  transferability,  then the Nonstatutory Stock Option shall
not be  transferable  except by will or by the laws of descent and  distribution
and shall be  exercisable  during the lifetime of the  Optionholder  only by the
Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the Company,  designate
a third  party  who,  in the  event  of the  death  of the  Optionholder,  shall
thereafter be entitled to exercise the Option.

         (e)  Vesting  Generally.  The total  number  of shares of Common  Stock
subject to an Option may, but need not, vest and therefore become exercisable in
periodic  installments  that may,  but need not,  be equal.  The  Option  may be
subject to such other terms and  conditions  on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem  appropriate.  The vesting  provisions of individual  Options may vary. The
provisions of this Section 6(g) are subject to any Option  provisions  governing
the  minimum  number  of shares  of  Common  Stock as to which an Option  may be
exercised.

         (f)   Termination  of  Continuous   Service.   In  the  event  that  an
Optionholder's Continuous Service terminates (other than upon the Optionholder's
death or Disability),  the  Optionholder  may exercise his or her Option (to the
extent that the Optionholder was entitled to exercise such Option as of the date
of termination) but only within such period of time ending on the earlier of (i)
the date  three (3)  months  following  the  termination  of the  Optionholder's
Continuous  Service (or such longer or shorter  period  specified  in the Option
Agreement or (ii) the  expiration  of the term of the Option as set forth in the
Option Agreement. If, after termination,  the Optionholder does not exercise his
or her Option  within the time  specified  in the Option  Agreement,  the Option
shall terminate.

         (g) Extension of Termination Date. An  Optionholder's  Option Agreement
may also provide that if the exercise of the Option following the termination of
the Optionholder's  Continuous Service (other than upon the Optionholder's death
or  Disability)  would be prohibited at any time solely  because the issuance of
shares of Common Stock would  violate the  registration  requirements  under the
Securities  Act,  then the  Option  shall  terminate  on the  earlier of (i) the
expiration  of the term of the  Option  set  forth in  Section  6(a) or (ii) the
expiration  of a  period  of three  (3)  months  after  the  termination  of the
Optionholder's  Continuous Service during which the exercise of the Option would
not be in violation of such registration requirements.

         (h)  Disability of  Optionholder.  In the event that an  Optionholder's
Continuous Service terminates as a result of the Optionholder's  Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise  such Option as of the date of  termination),  but only
within  such  period of time  ending on the  earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified in
the Option  Agreement  or (ii) the  expiration  of the term of the Option as set
forth in the Option Agreement. If, after termination,  the Optionholder does not
exercise his or her Option within the time  specified  herein,  the Option shall
terminate.

                                       8.
<PAGE>

         (i)  Death of  Optionholder.  In the event  that (i) an  Optionholder's
Continuous Service  terminates as a result of the  Optionholder's  death or (ii)
the  Optionholder  dies  within  the  period  (if any)  specified  in the Option
Agreement after the termination of the  Optionholder's  Continuous Service for a
reason  other than death,  then the Option may be  exercised  (to the extent the
Optionholder  was  entitled to exercise  such Option as of the date of death) by
the  Optionholder's  estate,  by a person who acquired the right to exercise the
Option by bequest or  inheritance  or by a person  designated  to  exercise  the
option upon the Optionholder's  death pursuant to Section 6(e) or 6(f), but only
within  the period  ending on the  earlier of (1) the date  twelve  (12)  months
following the date of death (or such longer or shorter  period  specified in the
Option  Agreement or (2) the  expiration of the term of such Option as set forth
in the Option Agreement. If, after death, the Option is not exercised within the
time specified herein, the Option shall terminate.

         (j) Early Exercise.  The Option may, but need not,  include a provision
whereby  the  Optionholder  may  elect at any  time  before  the  Optionholder's
Continuous  Service  terminates  to exercise the Option as to any part or all of
the shares of Common  Stock  subject to the Option  prior to the full vesting of
the Option. Any unvested shares of Common Stock so purchased may be subject to a
repurchase  option in favor of the Company or to any other restriction the Board
determines  to be  appropriate.  The Company will not  exercise  its  repurchase
option  until at least six (6) months (or such longer or shorter  period of time
required to avoid a charge to earnings for financial  accounting  purposes) have
elapsed following exercise of the Option unless the Board otherwise specifically
provides in the Option.

7. PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

         (a) Stock Bonus  Awards.  Each stock bonus  agreement  shall be in such
form and shall  contain  such  terms and  conditions  as the  Board  shall  deem
appropriate.  The terms and conditions of stock bonus agreements may change from
time to time, and the terms and  conditions of separate  stock bonus  agreements
need not be identical,  but each stock bonus  agreement  shall include  (through
incorporation  of provisions  hereof by reference in the agreement or otherwise)
the substance of each of the following provisions:

                  (i)   Consideration.   A  stock   bonus  may  be   awarded  in
consideration for past services actually rendered to the Company or an Affiliate
for its benefit.

                  (ii)  Vesting.  Shares of Common Stock awarded under the stock
bonus  agreement may, but need not, be subject to a share  repurchase  option in
favor of the Company in accordance  with a vesting  schedule to be determined by
the Board.

                  (iii) Termination of Participant's  Continuous Service. In the
event that a  Participant's  Continuous  Service  terminates,  the  Company  may
reacquire any or all of the shares of Common Stock held by the Participant  that
have not vested as of the date of termination under the terms of the stock bonus
agreement.

                  (iv) Transferability. Rights to acquire shares of Common Stock
under the stock bonus agreement  shall be  transferable by the Participant  only
upon such terms and conditions as are set forth in the stock bonus agreement, as
the Board shall  determine in its

                                       9.
<PAGE>

discretion,  so long as Common  Stock  awarded  under the stock bonus  agreement
remains subject to the terms of the stock bonus agreement.

         (b) Restricted Stock Awards.  Each restricted stock purchase  agreement
shall be in such form and shall  contain such terms and  conditions as the Board
shall  deem  appropriate.  The  terms and  conditions  of the  restricted  stock
purchase  agreements  may change from time to time, and the terms and conditions
of separate restricted stock purchase agreements need not be identical, but each
restricted  stock purchase  agreement shall include  (through  incorporation  of
provisions  hereof by reference in the agreement or otherwise)  the substance of
each of the following provisions:

                  (i) Purchase  Price.  The purchase  price of restricted  stock
awards shall not be less than  eighty-five  percent (85%) of the Common  Stock's
Fair Market  Value on the date such award is made or at the time the purchase is
consummated.

                  (ii)  Consideration.   The  purchase  price  of  Common  Stock
acquired  pursuant to the  restricted  stock  purchase  agreement  shall be paid
either:  (i) in cash at the  time of  purchase;  (ii) at the  discretion  of the
Board,  according to a deferred  payment or other similar  arrangement  with the
Participant;  or (iii) in any  other  form of  legal  consideration  that may be
acceptable to the Board in its discretion;  provided,  however, that at any time
that the Company is incorporated in Delaware, then payment of the Common Stock's
"par value," as defined in the Delaware  General  Corporation  Law, shall not be
made by deferred payment.

                  (iii)  Vesting.  Shares of  Common  Stock  acquired  under the
restricted  stock  purchase  agreement  may, but need not, be subject to a share
repurchase  option in favor of the Company in accordance with a vesting schedule
to be determined by the Board.

                  (iv) Termination of Participant's  Continuous  Service. In the
event that a  Participant's  Continuous  Service  terminates,  the  Company  may
repurchase or otherwise  reacquire any or all of the shares of Common Stock held
by the Participant that have not vested as of the date of termination  under the
terms of the restricted stock purchase agreement.

                  (v) Transferability.  Rights to acquire shares of Common Stock
under the  restricted  stock purchase  agreement  shall be  transferable  by the
Participant  only  upon  such  terms  and  conditions  as are set  forth  in the
restricted  stock  purchase  agreement,  as the  Board  shall  determine  in its
discretion,  so long as Common Stock awarded under the restricted stock purchase
agreement  remains  subject  to the  terms  of  the  restricted  stock  purchase
agreement.

8. COVENANTS OF THE COMPANY.

         (a) Availability of Shares.  During the terms of the Stock Awards,  the
Company  shall keep  available at all times the number of shares of Common Stock
required to satisfy such Stock Awards.

         (b)  Securities Law  Compliance.  The Company shall seek to obtain from
each  regulatory  commission  or agency having  jurisdiction  over the Plan such
authority  as may be required to grant Stock Awards and to issue and sell shares
of Common Stock upon exercise of the Stock Awards; provided,  however, that this
undertaking  shall not require the Company to

                                      10.
<PAGE>

register  under the Securities Act the Plan, any Stock Award or any Common Stock
issued or  issuable  pursuant  to any such Stock  Award.  If,  after  reasonable
efforts, the Company is unable to obtain from any such regulatory  commission or
agency the  authority  which  counsel for the Company  deems  necessary  for the
lawful  issuance and sale of Common Stock under the Plan,  the Company  shall be
relieved  from any  liability  for failure to issue and sell  Common  Stock upon
exercise of such Stock Awards unless and until such authority is obtained.

9. USE OF PROCEEDS FROM STOCK.

         Proceeds  from the sale of Common Stock  pursuant to Stock Awards shall
constitute general funds of the Company.

10. MISCELLANEOUS.

         (a) Acceleration of  Exercisability  and Vesting.  The Board shall have
the power to  accelerate  the time at which a Stock Award may first be exercised
or the  time  during  which a Stock  Award  or any  part  thereof  will  vest in
accordance  with the Plan,  notwithstanding  the  provisions  in the Stock Award
stating the time at which it may first be  exercised or the time during which it
will vest.

         (b) Stockholder Rights. No Participant shall be deemed to be the holder
of, or to have any of the  rights of a holder  with  respect  to,  any shares of
Common Stock subject to such Stock Award unless and until such  Participant  has
satisfied  all  requirements  for  exercise of the Stock  Award  pursuant to its
terms.

         (c) No Employment or other Service  Rights.  Nothing in the Plan or any
instrument  executed or Stock Award granted  pursuant  thereto shall confer upon
any  Participant  any right to continue to serve the Company or an  Affiliate in
the  capacity in effect at the time the Stock Award was granted or shall  affect
the right of the Company or an Affiliate to terminate  (i) the  employment of an
Employee with or without notice and with or without cause, (ii) the service of a
Consultant pursuant to the terms of such Consultant's agreement with the Company
or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the
Company or an Affiliate,  and any applicable  provisions of the corporate law of
the state in which the Company or the Affiliate is incorporated, as the case may
be.

         (d) Investment Assurances. The Company may require a Participant,  as a
condition of exercising or acquiring  Common Stock under any Stock Award, (i) to
give  written  assurances  satisfactory  to the Company as to the  Participant's
knowledge and  experience in financial and business  matters  and/or to employ a
purchaser   representative   reasonably  satisfactory  to  the  Company  who  is
knowledgeable  and experienced in financial and business  matters and that he or
she  is  capable  of   evaluating,   alone  or  together   with  the   purchaser
representative,  the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring Common Stock subject to the Stock Award for the  Participant's  own
account and not with any present intention of selling or otherwise  distributing
the Common Stock. The foregoing requirements,  and any assurances given pursuant
to such requirements,  shall be inoperative if (1) the issuance of the shares of
Common  Stock upon the exercise or  acquisition  of Common Stock under the Stock
Award  has  been  registered

                                      11.
<PAGE>

under a then currently effective registration statement under the Securities Act
or (2) as to any particular requirement,  a determination is made by counsel for
the Company that such requirement need not be met in the circumstances under the
then applicable  securities laws. The Company may, upon advice of counsel to the
Company,  place  legends  on stock  certificates  issued  under the Plan as such
counsel  deems  necessary  or  appropriate  in order to comply  with  applicable
securities laws, including, but not limited to, legends restricting the transfer
of the Common Stock.

         (e) Withholding  Obligations.  To the extent provided by the terms of a
Stock Award Agreement,  the Participant may satisfy any federal,  state or local
tax  withholding  obligation  relating to the exercise or  acquisition of Common
Stock  under a Stock  Award by any of the  following  means (in  addition to the
Company's right to withhold from any compensation paid to the Participant by the
Company) or by a combination of such means:  (i) tendering a cash payment;  (ii)
authorizing  the Company to withhold  shares of Common  Stock from the shares of
Common Stock  otherwise  issuable to the Participant as a result of the exercise
or acquisition of Common Stock under the Stock Award; provided, however, that no
shares of Common Stock are withheld with a value exceeding the minimum amount of
tax required to be withheld by law (or such lesser amount as may be necessary to
avoid variable award  accounting);  or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

11. ADJUSTMENTS UPON CHANGES IN STOCK.

         (a)  Capitalization  Adjustments.  If any  change  is made in, or other
event occurs with respect to, the Common Stock subject to the Plan or subject to
any Stock Award  without the receipt of  consideration  by the Company  (through
merger, consolidation, reorganization, recapitalization,  reincorporation, stock
dividend,  dividend  in  property  other than  cash,  stock  split,  liquidating
dividend,  combination  of  shares,  exchange  of  shares,  change in  corporate
structure or other transaction not involving the receipt of consideration by the
Company (each a  "Capitalization  Adjustment"),  the Plan will be  appropriately
adjusted in the class(es) and maximum  number of securities  subject to the Plan
pursuant to Sections 4(a) and 4(b) and the maximum number of securities  subject
to award to any person  pursuant  to Section  5(c),  and the  outstanding  Stock
Awards will be appropriately  adjusted in the class(es) and number of securities
and price per share of Common Stock  subject to such  outstanding  Stock Awards.
The Board shall make such  adjustments,  and its  determination  shall be final,
binding and conclusive.  (The  conversion of any  convertible  securities of the
Company shall not be treated as a transaction "without receipt of consideration"
by the Company.)

         (b)  Dissolution  or  Liquidation.  In the  event of a  dissolution  or
liquidation of the Company,  then all  outstanding  Stock Awards shall terminate
immediately prior to the completion of such dissolution or liquidation.

         (c) Corporate Transaction. In the event of a Corporate Transaction, any
surviving  corporation  or  acquiring  corporation  may  assume any or all Stock
Awards  outstanding  under the Plan or may  substitute  similar stock awards for
Stock Awards  outstanding under the Plan (it being understood that similar stock
awards include, but are not limited to, awards to acquire the same consideration
paid to the  stockholders  or the Company,  as the case may be,  pursuant to the
Corporate  Transaction).  In the event that the surviving corporation refuses to
assume or

                                      12.
<PAGE>

substitute for the Stock Award, the Participant shall fully vest in and have the
right to  exercise  the Stock  Award as to all of the  Common  Stock,  including
shares as to which it would not otherwise be vested or  exercisable.  If a Stock
Award becomes fully vested and exercisable in lieu of assumption or substitution
in the  event  of a  merger  or sale of  assets,  the  Board  shall  notify  the
Participant  in writing or  electronically  that the Stock  Award shall be fully
vested and  exercisable  for a period of fifteen (15) days from the date of such
notice,  and the Stock Award shall terminate upon the expiration of such period.
For the purposes of this paragraph,  the Stock Award shall be considered assumed
if,  following the Corporate  Transaction,  the Stock Award confers the right to
purchase or receive,  for each share of Common Stock,  immediately  prior to the
Corporate  Transaction,   the  consideration  (whether  stock,  cash,  or  other
securities  or property)  received in the  Corporate  Transaction  by holders of
Common  Stock  for  each  share  held on the  effective  date  of the  Corporate
Transaction (and if holders were offered a choice of consideration,  the type of
consideration  chosen by the holders of a majority of the  outstanding  shares);
provided,  however,  that  if  such  consideration  received  in  the  Corporate
Transaction  is not solely  common  stock of the  surviving  corporation  or its
parent,  the Board may, with the consent of the surviving  corporation,  provide
for the  consideration  to be received upon the exercise of the Stock Award, for
each  share  of  Common  Stock  to be  solely  common  stock  of  the  surviving
corporation  or  its  parent  equal  in  fair  market  value  to the  per  share
consideration received by holders of Common Stock in the Corporate Transaction.

         (d) Change in  Control.  A Stock  Award held by any  Participant  whose
Continuous Service has not terminated prior to the effective time of a Change in
Control may be subject to additional  acceleration of vesting and exercisability
upon or after such event as may be  provided in the Stock  Award  Agreement  for
such Stock Award or as may be provided in any other  written  agreement  between
the Company or any  Affiliate  and the  Participant,  but in the absence of such
provision, no such acceleration shall occur.

12. AMENDMENT OF THE PLAN AND STOCK AWARDS.

         (a)  Amendment of Plan.  The Board at any time,  and from time to time,
may amend the Plan.

         (b) Stockholder Approval. The Board, in its sole discretion, may submit
the Plan and/or any amendment to the Plan for stockholder approval.

         (c) No  Impairment  of Rights.  Rights  under any Stock  Award  granted
before  amendment of the Plan shall not be impaired by any amendment of the Plan
unless (i) the  Company  requests  the consent of the  Participant  and (ii) the
Participant consents in writing.

         (d) Amendment of Stock Awards.  The Board at any time, and from time to
time,  may amend the terms of any one or more Stock Awards;  provided,  however,
that the  rights  under  any  Stock  Award  shall  not be  impaired  by any such
amendment  unless (i) the Company  requests the consent of the  Participant  and
(ii) the Participant consents in writing.

13. TERMINATION OR SUSPENSION OF THE PLAN.

         (a) Plan Term. The Board may suspend or terminate the Plan at any time.
No Stock  Awards may be granted  under the Plan while the Plan is  suspended  or
after it is terminated.

                                      13.
<PAGE>

         (b) No Impairment  of Rights.  Suspension  or  termination  of the Plan
shall not impair rights and obligations  under any Stock Award granted while the
Plan is in effect except with the written consent of the Participant.

14. EFFECTIVE DATE OF PLAN.

         The Plan shall become  effective  as  determined  by the Board,  but no
Stock  Award shall be  exercised  (or,  in the case of a stock  bonus,  shall be
granted) unless and until the Plan has been approved by the  stockholders of the
Company,  which  approval shall be within twelve (12) months before or after the
date the Plan is adopted by the Board.

15. CHOICE OF LAW.

         The law of the State of Delaware shall govern all questions  concerning
the construction,  validity and  interpretation of this Plan,  without regard to
such state's conflict of laws rules.

                                      14.EXTENSITY, INC.

               EXECUTIVE CHANGE OF CONTROL SEVERANCE BENEFIT PLAN

Section 1. INTRODUCTION.

         This Extensity, Inc. Executive Change of Control Severance Benefit Plan
(the "Plan") was  established  effective April 11, 2002. The purpose of the Plan
is to  provide  for the  payment  of  severance  benefits  to  certain  eligible
employees of Extensity,  Inc. (the "Company")  whose employment with the Company
is terminated  pursuant to a Covered  Termination (as defined below).  This Plan
shall  supersede  any  severance  benefit  plan,  policy or practice  previously
maintained  by  the  Company.  This  Plan  document  also  is the  Summary  Plan
Description for the Plan.

Section 2. DEFINITIONS.

         For purposes of the Plan, the following terms are defined as follows:

         (a) "Base Salary" means the Eligible  Employee's  annual base salary as
in  effect  during  the last  regularly  scheduled  payroll  period  immediately
preceding the effective date of the Covered Termination.

         (b) "Board" means the Board of Directors of the Company.

         (c) "Change in Control" means the occurrence,  in a single  transaction
or in a series  of  related  transactions,  of any one or more of the  following
events:

                  (1) any person,  entity or group within the meaning of Section
13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or any comparable  successor  provisions,  becomes the beneficial  owner,
directly or  indirectly,  of  securities of the Company  representing  more than
fifty  percent  (50%)  of  the  combined  voting  power  of the  Company's  then
outstanding  securities  other  than by  virtue of a  merger,  consolidation  or
similar transaction;

                  (2) there is  consummated a merger,  consolidation  or similar
transaction  involving  (directly or  indirectly)  the Company and,  immediately
after the consummation of such merger, consolidation or similar transaction, the
stockholders of the Company  immediately  prior thereto do not own,  directly or
indirectly,  outstanding voting securities  representing more than fifty percent
(50%) of the combined  outstanding  voting power of the surviving entity in such
merger, consolidation or similar transaction or more than fifty percent (50%) of
the combined  outstanding  voting power of the parent of the surviving entity in
such merger, consolidation or similar transaction;

                  (3)  there is  consummated  a sale,  lease,  license  or other
disposition  of all or  substantially  all of  the  consolidated  assets  of the
Company  and its  subsidiaries,  other  than a sale,  lease,  license  or  other
disposition  of all or  substantially  all of  the  consolidated  assets  of the
Company and its subsidiaries to an entity,  more than fifty percent (50%) of the
combined  voting

                                       1.
<PAGE>

power of the voting securities of which are owned by stockholders of the Company
in  substantially  the  same  proportions  as  their  ownership  of the  Company
immediately prior to such sale, lease, license or other disposition; or

                  (4) individuals who, on the Effective Date, are members of the
board of directors of the Company (the  "Incumbent  Board") cease for any reason
to  constitute  at least a majority  of the  members of the board of  directors;
(provided,  however,  that if the  appointment  or election (or  nomination  for
election) of any new board member was approved or recommended by a majority vote
of the  members of the  Incumbent  Board  then still in office,  such new member
shall,  for purposes of this Plan,  be  considered  as a member of the Incumbent
Board).

         (d) "Company" means Extensity, Inc.

         (e)  "Constructive   Termination"  means  that  the  Eligible  Employee
voluntarily  terminates  employment  with the  Company not more than thirty (30)
days after:

                  (i) the  assignment to the Eligible  Employee of any duties or
responsibilities  that  results  in a  significant  diminution  in the  Eligible
Employee's function as in effect on the Effective Date; provided,  however, that
a change in the Eligible  Employee's title or reporting  relationships by itself
shall not constitute a Constructive Termination;

                  (ii) any  reduction by the Company in the Eligible  Employee's
Base Salary; provided,  however, that a reduction by the Company of the Eligible
Employee's  Base  Salary  by up to five  percent  (5%)  shall not  constitute  a
Constructive  Termination  if  such  reduction  is made  in  connection  with an
across-the-board reduction by the Company of all Eligible Employees' annual base
salaries by a percentage at least equal to the  percentage by which the Eligible
Employee's Base Salary is reduced;

                  (iii) a relocation of the Eligible  Employee's business office
to a location  more than  thirty-five  (35) miles from the  Eligible  Employee's
business  office  on the  Effective  Date,  except  for  required  travel by the
Eligible  Employee  on  the  Company's  business  to  an  extent   substantially
consistent with the Eligible Employee's business travel obligations prior to the
Effective Date; provided, however, that no relocation of the Eligible Employee's
business office shall constitute a Constructive Termination for purposes of this
Plan if the  Eligible  Employee  provides  services to the Company from a remote
location (e.g., through telecommuting) at the time of the relocation;

                  (iv) a material breach by the Company of any provision of this
Plan; or

                  (v) any  failure by the  Company to obtain the  assumption  of
this Plan by any successor or assign of the Company.

         (f)  "Continuation  Period"  means the period  during which an Eligible
Employee is entitled to receive the salary  continuation  benefits  described in
Section 4(a). The maximum  Continuation  Period for Eligible  Employees shall be
twelve (12) months.

                                       2.
<PAGE>

         (g) "Covered  Termination"  means an  Involuntary  Termination  Without
Cause or a  Constructive  Termination,  notice of either of which is given on or
after the Effective Date.

         (h)  "Effective  Date" means April 11, 2002,  the effective date of the
Plan.

         (i) "Eligible  Employee" means any full-time,  regular hire employee of
the Company  who holds the title of Senior  Vice  President  or  Executive  Vice
President or is an Officer of the Company and whose  employment with the Company
terminates  due to a  Covered  Termination  within  one (1)  month  prior  to or
thirteen (13) months following the effective date of a Change in Control.

         (j)  "Involuntary   Termination   Without  Cause"  means  the  Eligible
Employee's  dismissal  or  discharge  for a reason  other than  Cause.  For this
purpose, "Cause" means that, in the reasonable determination of the Company, the
Eligible Employee has

                  (i) been  convicted of or pleaded  guilty or no contest to any
felony or any crime  involving  dishonesty  that is  likely  to  inflict  or has
inflicted demonstrable and material injury on the business of the Company;

                  (ii) participated in any fraud against the Company;

                  (iii) willfully and materially breached a Company policy;

                  (iv) intentionally damaged any property of the Company thereby
causing demonstrable and material injury to the business of the Company;

                  (v) willfully and materially  breached the Eligible Employee's
Proprietary Information and Inventions Agreement with the Company;

                  (vi) engaged in conduct that, in the reasonable  determination
of the Company, demonstrates gross unfitness to serve; or

                  (vii)   demonstrated   a  continued   pattern  of  substantial
nonperformance of his or her duties.

         Notwithstanding  the foregoing,  Cause shall not exist based on conduct
described in clause (iii),  (vi) or (vii) above unless the conduct  described in
such clause has not been cured within  fifteen (15) days  following the Eligible
Employee's receipt of written notice from the Company specifying the particulars
of the conduct constituting Cause.

         (k)  "Officer"  means a person who is an officer of the Company  within
the  meaning  of Section 16 of the  Exchange  Act and the rules and  regulations
promulgated thereunder.

         (l) "Year of  Service"  means any  twelve  (12)  consecutive  months of
service with the Company.

                                       3.
<PAGE>

Section 3. ELIGIBILITY FOR BENEFITS.

         (a)  General  Rules.  Subject  to the  requirements  set  forth in this
section, the Company shall provide the severance benefits described in Section 4
to Eligible Employees.

                  (i) In order to be  eligible  to  receive  benefits  under the
Plan, an Eligible Employee whose employment is terminated  pursuant to a Covered
Termination  that is an Involuntary  Termination  Without Cause must continue to
provide services to the Company, at the Company's request,  through such date as
determined by the Company;  provided,  however, that such date shall not be more
than  ninety  (90) days from the date the  Eligible  Employee is notified by the
Company, in writing, of his or her Involuntary Termination Without Cause.

                  (ii) In order to be  eligible  to receive  benefits  under the
Plan,  an Eligible  Employee  also must execute a general  waiver and release in
substantially  the form attached hereto as Exhibit A, Exhibit B or Exhibit C, as
appropriate,  and such release  must become  effective  in  accordance  with its
terms. The Company, in its sole discretion,  may modify the form of the required
release to comply with applicable  state law and shall determine the form of the
required release.

         (b) No Benefit  Entitlement.  An  employee,  whether or not an Eligible
Employee,  shall not receive  benefits under the Plan (or shall receive  reduced
benefits  under the Plan as noted below) in any of the following  circumstances,
as determined by the Company in its sole discretion:

                  (i) The  employee  has  executed  an  individually  negotiated
employment contract or agreement with the Company relating to severance benefits
that is in effect on his or her termination  date, in which case such employee's
severance  benefit,  if any, shall be governed by the terms of such individually
negotiated  employment  contract or agreement and shall be governed by this Plan
only to the extent that the  reduction  pursuant to Section  5(a) below does not
entirely eliminate benefits under this Plan.

                  (ii)  The  Company  involuntarily  terminates  the  employee's
employment with the Company,  and such termination does not constitute a Covered
Termination.  Involuntary  terminations  include,  but are  not  limited  to,  a
termination for Cause, as such term is defined in Section 2(j).

                  (iii) The employee voluntarily  terminates employment with the
Company,  and such termination  does not constitute a Constructive  Termination.
Voluntary terminations include, but are not limited to, resignation,  retirement
or failure to return from a leave of absence on the scheduled date.

                  (iv) The employee voluntarily  terminates  employment with the
Company in order to accept  employment  with  another  entity  that is wholly or
partly  owned  (directly  or  indirectly)  by the Company or an affiliate of the
Company.

                  (v) The  employee is offered  employment,  with the same title
and reporting  responsibilities and no diminution in duties and responsibilities
and no reduction in

                                       4.
<PAGE>

compensation or benefits,  with the Company,  an affiliate of the Company,  or a
successor to the Company.

                  (vi) The employee is rehired by the Company or an affiliate of
the Company prior to the date benefits under the Plan are scheduled to commence.

Section 4. AMOUNT OF BENEFIT.

         (a) Salary  Continuation.  Each  Eligible  Employee  shall  continue to
receive  Base  Salary for a  Continuation  Period of six (6) months plus one (1)
month of  additional  salary  continuation  for each  complete  Year of  Service
performed by the Eligible Employee in excess of two (2) Years of Service up to a
maximum  of  twelve  (12)  months.   Such  amounts  shall  be  paid  in  regular
installments  on the normal payroll dates of the Company and shall be subject to
all required tax withholding.

         (b) Continued Insurance  Benefits.  Provided that the Eligible Employee
elects continued coverage under the Consolidated  Omnibus Budget  Reconciliation
Act of 1985  ("COBRA"),  the  Company  shall pay the portion of premiums of each
Eligible  Employee's  group  medical,  dental  and  vision  coverage,  including
coverage for the Eligible Employee's eligible dependents,  that the Company paid
prior to the Covered Termination for the Continuation Period or, if shorter, for
the  duration of the COBRA  continuation  period.  Such premium  payments  shall
continue for the duration of the Continuation Period; provided, however, that no
such premium payments shall be made following the effective date of the Eligible
Employee's  coverage  by  a  medical,  dental  or  vision  insurance  plan  of a
subsequent  employer.  Each  Eligible  Employee  shall be required to notify the
Company in writing  immediately if the Eligible  Employee  becomes  covered by a
medical, dental or vision insurance plan of a subsequent employer.

         No provision of this Plan will affect the  continuation  coverage rules
under  COBRA,  except that the  Company's  payment of any  applicable  insurance
premiums  during the  Continuation  Period  will be  credited  as payment by the
Eligible  Employee  for purposes of the Eligible  Employee's  payments  required
under COBRA.  Therefore,  the period during which an Eligible Employee may elect
to continue the Company's group medical coverage at his or her own expense under
COBRA,  the length of time during which COBRA coverage will be made available to
the  Eligible  Employee,  and all other rights and  obligations  of the Eligible
Employee under COBRA (except the  obligation to pay insurance  premiums that the
Company pays during the Continuation  Period) will be applied in the same manner
that such rules would apply in the absence of this Plan.  At the  conclusion  of
the  Continuation  Period,  the Eligible  Employee shall be responsible  for the
entire  payment of premiums  required  under COBRA for the duration of the COBRA
continuation period. For purposes of this Section 4(b), applicable premiums that
will be paid by the Company during the Continuation Period shall not include any
amounts  payable  by the  Eligible  Employee  under a Section  125  health  care
reimbursement  plan, which amounts,  if any, are the sole  responsibility of the
Eligible Employee.

         (c) Stock  Options.  Each Eligible  Employee  shall receive twelve (12)
months of accelerated vesting of such Eligible Employee's unvested stock options
(the "Accelerated Vesting"). The Accelerated Vesting shall occur on the Eligible
Employee's  termination date.

                                       5.
<PAGE>

Each Eligible  Employee shall have ninety (90) days from his or her  termination
date to exercise the options subject to the Accelerated Vesting.

         (d)  Loan  Forgiveness.   If  an  Eligible  Employee  currently  has  a
promissory  note payable to the Company,  such promissory note shall be forgiven
at the conclusion of the Continuation Period.

Section 5. LIMITATIONS ON BENEFITS.

         (a) Certain Reductions and Offsets. Notwithstanding any other provision
of the Plan to the contrary,  any benefits payable to an Eligible Employee under
this Plan shall be reduced by any severance  benefits  payable by the Company to
such individual under any other policy, plan, program or arrangement, including,
without  limitation,  a contract  between the Eligible  Employee and any entity,
covering such individual.  Furthermore, to the extent that any federal, state or
local laws,  including,  without  limitation,  so-called  "plant  closing" laws,
require the Company to give  advance  notice or make a payment of any kind to an
Eligible Employee because of that Eligible  Employee's  involuntary  termination
due to a  layoff,  reduction  in  force,  plant  or  facility  closing,  sale of
business,  change of control, or any other similar event or reason, the benefits
payable  under this Plan shall  either be reduced or  eliminated.  The  benefits
provided  under  this  Plan  are  intended  to  satisfy  any and  all  statutory
obligations that may arise out of an Eligible Employee's involuntary termination
of employment for the foregoing reasons,  and the Plan Administrator (as defined
in Section 12(d)) shall so construe and implement the terms of the Plan.

         (b)  Mitigation.  Except as  otherwise  specifically  provided  herein,
Eligible  Employees  shall not be required to mitigate  damages or the amount of
any payment  provided under this Plan by seeking other  employment or otherwise,
nor shall the amount of any payment  provided  for under this Plan be reduced by
any  compensation  earned by any Eligible  Employee as a result of employment by
another employer or any retirement  benefits  received by such Eligible Employee
after the date of the Covered Termination.

         (c)  Termination of Benefits.  Benefits under this Plan shall terminate
immediately  if the Eligible  Employee,  at any time,  violates any  proprietary
information or confidentiality obligation to the Company.

         (d)  Non-Duplication  of Benefits.  No Eligible Employee is eligible to
receive benefits under this Plan more than one time.

         (e) Indebtedness of Eligible Employees. Except as otherwise provided in
Section  4(d),  if a  terminating  employee  is  indebted  to the  Company or an
affiliate of the Company at his or her  termination  date, the Company  reserves
the right to offset any severance  payments under the Plan by the amount of such
indebtedness.

         (f) Parachute Payments. If any payment or benefit the Eligible Employee
would receive in connection  with a change in ownership or effective  control of
the Company from the Company or  otherwise  ("Payment")  would (i)  constitute a
"parachute  payment" within the meaning of Section 280G of the Internal  Revenue
Code of 1986,  as  amended  (the  "Code"),  and (ii) but for this  sentence,  be
subject  to the excise tax  imposed  by  Section  4999 of the Code

                                       6.
<PAGE>

(the "Excise Tax"), then such Payment shall be equal to the Reduced Amount.  The
"Reduced  Amount"  shall be either (x) the largest  portion of the Payment  that
would result in no portion of the Payment being subject to the Excise Tax or (y)
the largest  portion,  up to and including the total, of the Payment,  whichever
amount,  after  taking into  account  all  applicable  federal,  state and local
employment taxes,  income taxes, and the Excise Tax (all computed at the highest
applicable  marginal rate),  results in the Eligible  Employee's  receipt, on an
after-tax basis, of the greater amount of the Payment  notwithstanding  that all
or some  portion of the Payment may be subject to the Excise Tax. If a reduction
in payments or benefits  constituting  "parachute payments" is necessary so that
the Payment equals the Reduced  Amount,  reduction  shall occur in the following
order  unless  the  Eligible  Employee  elects  in  writing  a  different  order
(provided,  however,  that such election shall be subject to Company approval if
made on or after the date on which the event that triggers the Payment  occurs):
reduction of cash payments; cancellation of accelerated vesting of stock awards;
reduction  of  employee  benefits.  If  acceleration  of vesting of stock  award
compensation is to be reduced,  such  acceleration of vesting shall be cancelled
in the  reverse  order of the date of grant  of the  Eligible  Employee's  stock
awards  unless the  Eligible  Employee  elects in writing a different  order for
cancellation.

         The  accounting  firm engaged by the Company for general audit purposes
as of the  day  prior  to the  effective  date of the  change  in  ownership  or
effective  control of the Company shall perform the foregoing  calculations.  If
the  accounting  firm so engaged by the  Company  is  serving as  accountant  or
auditor for the individual, entity or group effecting the change in ownership or
effective  control  of the  Company,  the  Company  shall  appoint a  nationally
recognized  accounting firm to make the determinations  required hereunder.  The
Company  shall bear all  expenses  with  respect to the  determinations  by such
accounting firm required to be made hereunder.

         The accounting firm engaged to make the determinations  hereunder shall
provide its calculations,  together with detailed supporting  documentation,  to
the Company and the Eligible  Employee  within  fifteen (15) calendar days after
the date on which the Eligible  Employee's  right to a Payment is triggered  (if
requested  at that time by the Company or the  Eligible  Employee) or such other
time as  requested by the Company or the Eligible  Employee.  If the  accounting
firm determines that no Excise Tax is payable with respect to a Payment,  either
before or after the  application  of the Reduced  Amount,  it shall  furnish the
Company and the Eligible Employee with an opinion  reasonably  acceptable to the
Eligible  Employee  that no Excise  Tax will be  imposed  with  respect  to such
Payment.  Any good faith  determinations  of the accounting  firm made hereunder
shall be  final,  binding  and  conclusive  upon the  Company  and the  Eligible
Employee.

Section 6. RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION.

         (a)  Exclusive  Discretion.  The  Plan  Administrator  shall  have  the
exclusive discretion and authority to establish rules, forms, and procedures for
the  administration  of the Plan and to construe and  interpret  the Plan and to
decide any and all questions of fact, interpretation, definition, computation or
administration  arising in connection with the operation of the Plan, including,
but not limited to, the  eligibility  to  participate  in the Plan and amount of
benefits paid under the Plan. The rules, interpretations, computations and other
actions  of the  Plan  Administrator  shall be  binding  and  conclusive  on all
persons.

                                       7.
<PAGE>

         (b) Amendment or Termination.  The Company  reserves the right to amend
or terminate this Plan or the benefits provided hereunder at any time; provided,
however,  that no such  amendment or  termination  shall affect the right to any
unpaid  benefit of any Eligible  Employee  whose  termination  date has occurred
prior  to  amendment  or  termination  of  the  Plan.  Any  action  amending  or
terminating  the Plan shall be in writing and  executed  by the  chairman of the
Compensation Committee of the Board of Directors of the Company.

Section 7. TERMINATION OF CERTAIN EMPLOYEE BENEFITS.

         All non-health benefits (such as life insurance,  disability and 401(k)
plan coverage) shall terminate as of the employee's  termination date (except to
the extent that a conversion privilege may be available thereunder).

Section 8. NO IMPLIED EMPLOYMENT CONTRACT.

         The Plan shall not be deemed (i) to give any  employee or other  person
any right to be retained in the employ of the Company or (ii) to interfere  with
the right of the Company to  discharge  any employee or other person at any time
and for any reason, which right is hereby reserved.

Section 9. LEGAL CONSTRUCTION.

         This Plan is  intended  to be  governed  by and shall be  construed  in
accordance  with the Employee  Retirement  Income Security Act of 1974 ("ERISA")
and, to the extent not preempted by ERISA, the laws of the State of California.

Section 10. CLAIMS, INQUIRIES AND APPEALS.

         (a)  Applications  for  Benefits and  Inquiries.  Any  application  for
benefits,  inquiries  about the Plan or inquiries about present or future rights
under the Plan must be  submitted  to the Plan  Administrator  in  writing by an
applicant (or his or her authorized representative). The Plan Administrator is:

                             Chief Financial Officer
                                 Extensity, Inc.
                          2200 Powell Street, Suite 300
                              Emeryville, CA 94608

         (b) Denial of Claims. In the event that any application for benefits is
denied in whole or in part,  the Plan  Administrator  must provide the applicant
with written or electronic  notice of the denial of the application,  and of the
applicant's  right to review the denial.  Any electronic notice will comply with
the  regulations of the U.S.  Department of Labor.  The written notice of denial
will be set forth in a manner designed to be understood by the employee and will
include the following:

                  (1) the specific reason or reasons for the denial;

                                       8.
<PAGE>

                  (2) references to the specific Plan  provisions upon which the
denial is based;

                  (3) a description  of any  additional  information or material
that the Plan  Administrator  needs to complete the review and an explanation of
why such information or material is necessary; and

                  (4) an  explanation  of the Plan's review  procedures  and the
time  limits  applicable  to  such  procedures,  including  a  statement  of the
applicant's  right  to  bring a civil  action  under  section  502(a)  of  ERISA
following a denial on review of the claim, as described in Section 10(d) below.

         This written  notice will be given to the applicant  within ninety (90)
days after the Plan  Administrator  receives  the  application,  unless  special
circumstances   require  an  extension  of  time,   in  which  case,   the  Plan
Administrator  has up to an  additional  ninety  (90)  days for  processing  the
application.  If an extension of time for processing is required, written notice
of the  extension  will be  furnished  to the  applicant  before  the end of the
initial ninety (90) day period.

         This  notice of  extension  will  describe  the  special  circumstances
necessitating  the additional time and the date by which the Plan  Administrator
is to render its decision on the application. If written notice of denial of the
application  for  benefits  is not  furnished  within the  specified  time,  the
application  shall be deemed to be denied.  The applicant will then be permitted
to appeal the denial in accordance with the Review Procedure described below.

         (c)  Request  for a Review.  Any  person (or that  person's  authorized
representative)  for whom an  application  for  benefits  is denied  (or  deemed
denied),  in whole or in part, may appeal the denial by submitting a request for
a review to the Plan Administrator  within sixty (60) days after the application
is denied (or deemed  denied).  A request  for a review  shall be in writing and
shall be addressed to:

                             Chief Financial Officer
                                 Extensity, Inc.
                          2200 Powell Street, Suite 300
                              Emeryville, CA 94608

         A request  for review  must set forth all of the grounds on which it is
based,  all facts in  support  of the  request  and any other  matters  that the
applicant  feels are  pertinent.  The applicant  (or his or her  representative)
shall have the opportunity to submit (or the Plan  Administrator may require the
applicant to submit) written comments, documents, records, and other information
relating to his or her claim. The applicant (or his or her representative) shall
be provided,  upon request and free of charge,  reasonable access to, and copies
of, all documents,  records and other information  relevant to his or her claim.
The review shall take into account all  comments,  documents,  records and other
information  submitted by the applicant (or his or her representative)  relating
to the claim,  without  regard to whether  such  information  was  submitted  or
considered in the initial benefit determination.

                                       9.
<PAGE>

         (d) Decision on Review. The Plan Administrator will act on each request
for review within sixty (60) days after receipt of the request,  unless  special
circumstances  require an extension of time (not to exceed an  additional  sixty
(60) days), for processing the request for a review.  If an extension for review
is required,  written notice of the extension will be furnished to the applicant
within the initial sixty (60) day period. This notice of extension will describe
the special  circumstances  necessitating  the  additional  time and the date by
which the Plan  Administrator is to render its decision on the review.  The Plan
Administrator will give prompt,  written or electronic notice of its decision to
the  applicant.  Any electronic  notice will comply with the  regulations of the
U.S. Department of Labor. In the event that the Plan Administrator  confirms the
denial of the  application for benefits in whole or in part, the notice will set
forth, in a manner calculated to be understood by the applicant, the following:

                  (1) the specific reason or reasons for the denial;

                  (2) references to the specific Plan  provisions upon which the
denial is based;

                  (3) a  statement  that the  applicant  is entitled to receive,
upon  request  and free of  charge,  reasonable  access  to,  and copies of, all
documents, records and other information relevant to his or her claim; and

                  (4) a  statement  of the  applicant's  right  to bring a civil
action under section 502(a) of ERISA.

         If written notice of the Plan Administrator's  decision is not given to
the applicant within the time prescribed in this Subsection (d), the application
will  be  deemed  denied  on  review.

         (e) Rules and Procedures.  The Plan  Administrator will establish rules
and  procedures,  consistent  with the Plan and with  ERISA,  as  necessary  and
appropriate in carrying out its  responsibilities  in reviewing  benefit claims.
The Plan  Administrator may require an applicant who wishes to submit additional
information  in connection  with an appeal from the denial (or deemed denial) of
benefits to do so at the applicant's own expense.

         (f) Exhaustion of Remedies. No legal action for benefits under the Plan
may be brought  until the claimant (i) has submitted a written  application  for
benefits in  accordance  with the  procedures  described by Section 10(a) above,
(ii) has been notified by the Plan  Administrator that the application is denied
(or the application is deemed denied due to the Plan Administrator's  failure to
act on it within the established time period), (iii) has filed a written request
for a  review  of the  application  in  accordance  with  the  appeal  procedure
described in Section 10(c) above, and (iv) has been notified in writing that the
Plan  Administrator  has denied the appeal (or the appeal is deemed to be denied
due to the Plan  Administrator's  failure to take any action on the claim within
the time prescribed by Section 10(d) above).

Section 11. BASIS OF PAYMENTS TO AND FROM PLAN.

         All  benefits  under the Plan  shall be paid by the  Company.  The Plan
shall be unfunded,  and benefits  hereunder  shall be paid only from the general
assets of the Company.

                                      10.
<PAGE>

Section 12. OTHER PLAN INFORMATION.

         (a)   Employer   and  Plan   Identification   Numbers.   The   Employer
Identification  Number  assigned to the Company  (which is the "Plan Sponsor" as
that term is used in ERISA) by the Internal  Revenue Service is 68-0368868.  The
Plan  Number  assigned  to  the  Plan  by  the  Plan  Sponsor  pursuant  to  the
instructions of the Internal Revenue Service is ___.

         (b) Ending  Date for  Plan's  Fiscal  Year.  The date of the end of the
fiscal year for the purpose of maintaining the Plan's records is December 31.

         (c) Agent for the Service of Legal  Process.  The agent for the service
of legal  process  with  respect to the Plan is  Extensity,  Inc.,  2200  Powell
Street, Suite 300, Emeryville, CA 94608.

         (d) Plan Sponsor and  Administrator.  The "Plan  Sponsor" and the "Plan
Administrator"  of the Plan is Extensity,  Inc., 2200 Powell Street,  Suite 300,
Emeryville,  CA 94608.  The Plan  Sponsor's and Plan  Administrator's  telephone
number is (510) 594-5700.  The Plan Administrator is the named fiduciary charged
with the responsibility for administering the Plan.

Section 13. STATEMENT OF ERISA RIGHTS.

         Participants in this Plan (which is a welfare benefit plan sponsored by
Extensity,  Inc.) are entitled to certain rights and protections under ERISA. If
you are an Eligible Employee,  you are considered a participant in the Plan and,
under ERISA, you are entitled to:

         (a) Examine,  without charge, at the Plan Administrator's office and at
other specified locations,  such as work sites, all Plan documents and copies of
all  documents  filed by the Plan with the U.S.  Department  of  Labor,  such as
detailed annual reports;

         (b)  Obtain  copies of all Plan  documents  and Plan  information  upon
written  request  to  the  Plan  Administrator.  The  Administrator  may  make a
reasonable charge for the copies; and

         (c) Receive a summary of the Plan's  annual  financial  report,  in the
case of a plan that is required to file an annual financial report with the U.S.
Department  of Labor.  (Generally,  all pension plans and welfare plans with one
hundred (100) or more participants must file these annual reports.)

         In addition to creating  rights for Plan  participants,  ERISA  imposes
duties upon the people  responsible  for the  operation of the employee  benefit
plan. The people who operate the Plan, called  "fiduciaries" of the Plan, have a
duty to do so prudently  and in the interest of you and other Plan  participants
and beneficiaries.

         No one,  including  your employer or any other person,  may fire you or
otherwise  discriminate  against you in any way to prevent you from  obtaining a
Plan benefit or  exercising  your rights  under ERISA.  If your claim for a Plan
benefit is denied in whole or in part, you must

                                      11.
<PAGE>

receive a written  explanation of the reason for the denial.  You have the right
to have the Plan reviewed and reconsider your claim.

         Under ERISA,  there are steps you can take to enforce the above rights.
For  instance,  if you request  materials  from the Plan and do not receive them
within thirty (30) days, you may file suit in a federal  court.  In such a case,
the court may require the Plan  Administrator  to provide the  materials and pay
you up to $110 a day until you receive the materials,  unless the materials were
not sent because of reasons beyond the control of the Plan Administrator. If you
have a claim for benefits  that is denied or ignored,  in whole or in part,  you
may file suit in a state or federal  court.  If it should  happen  that the Plan
fiduciaries  misuse the Plan's money,  or if you are  discriminated  against for
asserting  your rights,  you may seek  assistance  from the U.S.  Department  of
Labor, or you may file suit in a federal court. The court will decide who should
pay court costs and legal fees. If you are  successful,  the court may order the
person  you have sued to pay these  costs and fees.  If you lose,  the court may
order you to pay these costs and fees,  for  example,  if it finds your claim is
frivolous.

         If you have any questions  about the Plan,  you should contact the Plan
Administrator.  If you have any  questions  about this  statement  or about your
rights under  ERISA,  you should  contact the nearest  office of the Pension and
Welfare  Benefits  Administration,  U.S.  Department  of  Labor,  listed in your
telephone  directory  or the  Division of Technical  Assistance  and  Inquiries,
Pension and Welfare  Benefits  Administration,  U.S.  Department  of Labor,  200
Constitution Avenue N.W., Washington, D.C. 20210.

Section 14. EXECUTION.

         To record the adoption of the Plan as set forth herein, effective as of
April 11,  2002,  Extensity,  Inc.  has  caused its duly  authorized  officer to
execute the same this 11th day of April 2002.

                                       EXTENSITY, INC.

                                       By: /s/ Robert A. Spinner
                                           --------------------------
                                       Title: Chief Executive Officer

                                      12.
<PAGE>

                                    EXHIBIT A

                                     RELEASE
           (Individual Termination, Eligible Employee age 40 or older)

         I  understand  and  agree  completely  to the  terms  set  forth in the
Extensity, Inc. Executive Change of Control Severance Benefit Plan (the "Plan").
Certain capitalized terms used in this Release are defined in the Plan.

         I  hereby  confirm  my  obligations  under  the  Company's  Proprietary
Information and Inventions Agreement.

         I  acknowledge  that I have  read and  understand  Section  1542 of the
California Civil Code which reads as follows: "A general release does not extend
to claims which the  creditor  does not know or suspect to exist in his favor at
the time of executing  the release,  which if known by him must have  materially
affected  his  settlement  with  the  debtor."  I  hereby  expressly  waive  and
relinquish  all  rights  and  benefits  under  that  section  and any law of any
jurisdiction  of similar  effect with  respect to my release of any claims I may
have against the Company.

         Except as otherwise set forth in this Release, I hereby release, acquit
and forever  discharge  the  Company,  its parents and  subsidiaries,  and their
officers,  directors,  agents, servants,  employees,  stockholders,  successors,
assigns and affiliates,  of and from any and all claims,  liabilities,  demands,
causes of action,  costs,  expenses,  attorneys fees,  damages,  indemnities and
obligations of every kind and nature,  in law, equity,  or otherwise,  known and
unknown,  suspected and unsuspected,  disclosed and undisclosed  (other than any
claim  for  indemnification  I may have as a result of any  third  party  action
against me based on my employment  with the  Company),  arising out of or in any
way  related  to  agreements,  events,  acts or conduct at any time prior to and
including  the date I execute this Release,  including,  but not limited to: all
such claims and  demands  directly  or  indirectly  arising out of or in any way
connected  with my  employment  with  the  Company  or the  termination  of that
employment,  including but not limited to, claims of  intentional  and negligent
infliction of emotional  distress,  any and all tort claims for personal injury,
claims or demands related to salary, bonuses, commissions, stock, stock options,
or any other ownership interests in the Company,  vacation pay, fringe benefits,
expense reimbursements, severance pay, or any other form of compensation; claims
pursuant to any federal,  state or local law or cause of action  including,  but
not limited to, the federal  Civil Rights Act of 1964,  as amended;  the federal
Age  Discrimination in Employment Act of 1967, as amended ("ADEA");  the federal
Employee  Retirement  Income  Security  Act of 1974,  as  amended;  the  federal
Americans with  Disabilities  Act of 1990; the  California  Fair  Employment and
Housing  Act,  as  amended;   tort  law;  contract  law;   wrongful   discharge;
discrimination; fraud; defamation; emotional distress; and breach of the implied
covenant of good faith and fair dealing; provided, however, that nothing in this
paragraph  shall  be  construed  in any way to  release  the  Company  from  its
obligation to indemnify me pursuant to the Company's indemnification  obligation
pursuant to agreement or applicable law.

         I acknowledge that I am knowingly and voluntarily waiving and releasing
any rights I may have under  ADEA.  I also  acknowledge  that the  consideration
given  under the Plan for the

                                       1.
<PAGE>

waiver and release in the preceding  paragraph hereof is in addition to anything
of value to which I was already entitled. I further acknowledge that I have been
advised  by this  writing,  as  required  by the ADEA,  that:  (A) my waiver and
release do not apply to any rights or claims that may arise on or after the date
I execute this Release;  (B) I have the right to consult with an attorney  prior
to executing  this  Release;  (C) I have  twenty-one  (21) days to consider this
Release (although I may choose to voluntarily execute this Release earlier); (D)
I have  seven (7) days  following  my  execution  of this  Release to revoke the
Release;  and (E) this Release shall not be effective  until the date upon which
the revocation  period has expired,  which shall be the eighth (8th) day after I
execute this Release.

                                        EMPLOYEE

                                        Name: __________________________________

                                        Date: __________________________________

                                       2.
<PAGE>

                                    EXHIBIT B

                                     RELEASE
       (Individual and Group Termination, Eligible Employee under age 40)

         I  understand  and  agree  completely  to the  terms  set  forth in the
Extensity, Inc. Executive Change of Control Severance Benefit Plan (the "Plan").
Certain capitalized terms used in this Release are defined in the Plan.

         I  hereby  confirm  my  obligations  under  the  Company's  Proprietary
Information and Inventions Agreement.

         I  acknowledge  that I have  read and  understand  Section  1542 of the
California Civil Code which reads as follows: "A general release does not extend
to claims which the  creditor  does not know or suspect to exist in his favor at
the time of executing  the release,  which if known by him must have  materially
affected  his  settlement  with  the  debtor."  I  hereby  expressly  waive  and
relinquish  all  rights  and  benefits  under  that  section  and any law of any
jurisdiction  of similar  effect with  respect to my release of any claims I may
have against the Company.

         Except as otherwise set forth in this Release, I hereby release, acquit
and forever  discharge  the  Company,  its parents and  subsidiaries,  and their
officers,  directors,  agents, servants,  employees,  stockholders,  successors,
assigns and affiliates,  of and from any and all claims,  liabilities,  demands,
causes of action,  costs,  expenses,  attorneys fees,  damages,  indemnities and
obligations of every kind and nature,  in law, equity,  or otherwise,  known and
unknown,  suspected and unsuspected,  disclosed and undisclosed  (other than any
claim  for  indemnification  I may have as a result of any  third  party  action
against me based on my employment  with the  Company),  arising out of or in any
way  related  to  agreements,  events,  acts or conduct at any time prior to and
including  the date I execute this Release,  including,  but not limited to: all
such claims and  demands  directly  or  indirectly  arising out of or in any way
connected  with my  employment  with  the  Company  or the  termination  of that
employment,  including,  but not limited to, claims of intentional and negligent
infliction of emotional  distress,  any and all tort claims for personal injury,
claims or demands related to salary, bonuses, commissions, stock, stock options,
or any other ownership interests in the Company,  vacation pay, fringe benefits,
expense reimbursements, severance pay, or any other form of compensation; claims
pursuant to any federal,  state or local law or cause of action  including,  but
not limited to, the federal  Civil Rights Act of 1964,  as amended;  the federal
Age  Discrimination in Employment Act of 1967, as amended ("ADEA");  the federal
Employee  Retirement  Income  Security  Act of 1974,  as  amended;  the  federal
Americans with  Disabilities  Act of 1990; the  California  Fair  Employment and
Housing  Act,  as  amended;   tort  law;  contract  law;   wrongful   discharge;
discrimination; fraud; defamation; emotional distress; and breach of the implied
covenant of good faith and fair dealing; provided, however, that nothing in this
paragraph  shall  be  construed  in any way to  release  the  Company  from  its
obligation to indemnify me pursuant to the Company's indemnification  obligation
pursuant to agreement or applicable law.

                                       1.
<PAGE>

         I  understand  that I have  seven  (7) days to  consider  this  Release
(although I may voluntarily execute the Release earlier).

                                        EMPLOYEE

                                        Name: __________________________________

                                        Date: __________________________________

                                       2.
<PAGE>

                                    EXHIBIT C

                                     RELEASE
             (Group Termination, Eligible Employee age 40 or older)

         I  understand  and  agree  completely  to the  terms  set  forth in the
Extensity, Inc. Executive Change of Control Severance Benefit Plan (the "Plan").
Certain capitalized terms used in this Release are defined in the Plan.

         I  hereby  confirm  my  obligations  under  the  Company's  Proprietary
Information and Inventions Agreement.

         I  acknowledge  that I have  read and  understand  Section  1542 of the
California Civil Code which reads as follows: "A general release does not extend
to claims which the  creditor  does not know or suspect to exist in his favor at
the time of executing  the release,  which if known by him must have  materially
affected  his  settlement  with  the  debtor."  I  hereby  expressly  waive  and
relinquish  all  rights  and  benefits  under  that  section  and any law of any
jurisdiction  of similar  effect with  respect to my release of any claims I may
have against the Company.

         Except as otherwise set forth in this Release, I hereby release, acquit
and forever  discharge  the  Company,  its parents and  subsidiaries,  and their
officers,  directors,  agents, servants,  employees,  stockholders,  successors,
assigns and affiliates,  of and from any and all claims,  liabilities,  demands,
causes of action,  costs,  expenses,  attorneys fees,  damages,  indemnities and
obligations of every kind and nature,  in law, equity,  or otherwise,  known and
unknown,  suspected and unsuspected,  disclosed and undisclosed  (other than any
claim  for  indemnification  I may have as a result of any  third  party  action
against me based on my employment  with the  Company),  arising out of or in any
way  related  to  agreements,  events,  acts or conduct at any time prior to and
including  the date I execute this Release,  including,  but not limited to: all
such claims and  demands  directly  or  indirectly  arising out of or in any way
connected  with my  employment  with  the  Company  or the  termination  of that
employment,  including,  but not limited to, claims of intentional and negligent
infliction of emotional  distress,  any and all tort claims for personal injury,
claims or demands related to salary, bonuses, commissions, stock, stock options,
or any other ownership interests in the Company,  vacation pay, fringe benefits,
expense reimbursements, severance pay, or any other form of compensation; claims
pursuant to any federal,  state or local law or cause of action  including,  but
not limited to, the federal  Civil Rights Act of 1964,  as amended;  the federal
Age  Discrimination in Employment Act of 1967, as amended ("ADEA");  the federal
Employee  Retirement  Income  Security  Act of 1974,  as  amended;  the  federal
Americans with  Disabilities  Act of 1990; the  California  Fair  Employment and
Housing  Act,  as  amended;   tort  law;  contract  law;   wrongful   discharge;
discrimination; fraud; defamation; emotional distress; and breach of the implied
covenant of good faith and fair dealing; provided, however, that nothing in this
paragraph  shall  be  construed  in any way to  release  the  Company  from  its
obligation to indemnify me pursuant to the Company's indemnification  obligation
pursuant to agreement or applicable law.

         I acknowledge that I am knowingly and voluntarily waiving and releasing
any rights I may have under  ADEA.  I also  acknowledge  that the  consideration
given  under the Plan for the

                                       1.
<PAGE>

waiver and release in the preceding  paragraph hereof is in addition to anything
of value to which I was already entitled. I further acknowledge that I have been
advised  by this  writing,  as  required  by the ADEA,  that:  (A) my waiver and
release do not apply to any rights or claims that may arise on or after the date
I execute this Release;  (B) I have the right to consult with an attorney  prior
to executing  this  Release;  (C) I have  forty-five  (45) days to consider this
Release (although I may choose to voluntarily execute this Release earlier); (D)
I have  seven (7) days  following  my  execution  of this  Release to revoke the
Release;  (E) this Release shall not be effective  until the date upon which the
revocation  period has  expired,  which  shall be the  eighth  (8th) day after I
execute this Release;  and (F) I have received with this Release a detailed list
of the job titles and ages of all  employees  who were  terminated in this group
termination  and the  ages of all  employees  of the  Company  in the  same  job
classification or organizational unit who were not terminated.

                                        EMPLOYEE

                                        Name: __________________________________

                                        Date: __________________________________

                                       2.

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