Document:

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                                                                    Exhibit 10.2

                                Extricity, Inc.
                            1996 STOCK OPTION PLAN
       As Adopted June 13, 1996 and Amended through _____________, 2000

1.   PURPOSE.  The purpose of this Plan is to provide incentives to attract,
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retain and motivate eligible persons whose present and potential contributions
are important to the success of the Company, its Parent and Subsidiaries, by
offering them an opportunity to participate in the Company's future performance
through awards of Options. Capitalized terms not defined in the text are defined
in Section 22.

2.   SHARES SUBJECT TO THE PLAN.
     --------------------------

     2.1  Number of Shares Available. Subject to Sections 2.2 and 17, the total
          --------------------------
number of Shares reserved and available for grant and issuance pursuant to this
Plan will be 11,840,000 Shares increased on the first day of each fiscal year of
the Company beginning on or after January 1, 2001 by the lesser of (a) 5% of the
number of shares of the Company's common stock which were issued and outstanding
on the last day of the preceding fiscal year, (b) 2,500,000 shares, or (c) such
lesser amount determined by the Board or the Committee. Subject to Sections 2.2
and 17, Shares will again be available for grant and issuance in connection with
future Options under this Plan that: (i) are subject to issuance upon exercise
of an Option but cease to be subject to such Option for any reason other than
exercise of such Option or (ii) are issued upon exercise of an Option and
repurchased by the Company pursuant to Section 11. At all times the Company will
reserve and keep available a sufficient number of Shares as will be required to
satisfy the requirements of all outstanding Options granted under this Plan.

     2.2  Adjustment of Shares. In the event that the number of outstanding
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Shares is changed by a stock dividend, recapitalization, stock split, reverse
stock split, subdivision, combination, reclassification or similar change in the
capital structure of the Company without consideration, then (a) the number of
Shares reserved for issuance under this Plan, (b) the Exercise Prices of and
number of Shares subject to outstanding Options, and (c) the Nonemployee
Director Options described in Section 7 below will be proportionately adjusted,
subject to any required action by the Board or the shareholders of the Company
and compliance with applicable securities laws; provided, however, that
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fractions of a Share will not be issued but will either be paid in cash at Fair
Market Value of such fraction of a Share or will be rounded up to the nearest
whole Share, as determined by the Committee.

3.   ELIGIBILITY.  ISOs (as defined in Section 5 below) may be granted only to
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employees (including officers and directors who are also employees) of the
Company or of a Parent or Subsidiary of the Company. Nonqualified Stock Options
(as defined in Section 5 below) may be granted to employees, officers, directors
and consultants of the Company or any Parent or Subsidiary of the Company;
provided such consultants render bona fide services not in connection with the
offer and sale of securities in a capital-raising transaction. A person may be
granted more than one Option under this Plan.

4.   ADMINISTRATION.
     --------------

     4.1  Committee Authority. This Plan will be administered by the Committee
          -------------------
or the Board acting as the Committee. Subject to the general purposes, terms and
conditions of this Plan, and to the direction of the Board, the Committee will
have full power to implement and carry out this Plan. Without limitation, the
Committee will have the authority to:

          (a)  construe and interpret this Plan, any Stock Option Agreement (as
defined in Section 5 below) and any other agreement or document executed
pursuant to this Plan;

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          (b)  prescribe, amend and rescind rules and regulations relating to
this Plan;

          (c)  select persons to receive Options;

          (d)  determine the form and terms of Options;

          (e)  determine the number of Shares or other consideration subject to
Options;

          (f)  determine whether Options will be granted singly, in combination
with, in tandem with, in replacement of, or as alternatives to, any other
incentive or compensation plan of the Company or any Parent or Subsidiary of the
Company;

          (g)  grant waivers of Plan or Option conditions;

          (h)  determine the vesting and exercisability of Options;

          (i)  correct any defect, supply any omission, or reconcile any
inconsistency in this Plan, any Option, any Stock Option Agreement (as defined
in Section 5 below) or any Exercise Agreement (as defined in Section 5 below);

          (j)  determine whether an Option has been earned; and

          (k)  make all other determinations necessary or advisable for the
administration of this Plan.

     4.2  Committee Discretion.  Any determination made by the Committee
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with respect to any Option will be made in its sole discretion at the time of
grant of the Option or, unless in contravention of any express term of this Plan
or Option, at any later time, and such determination will be final and binding
on the Company and on all persons having an interest in any Option under this
Plan. The Committee may delegate to one or more officers of the Company the
authority to grant an Option under this Plan to Participants who are not
Insiders of the Company.

5.   OPTIONS.  Except as described in Section 7 below, the Committee may grant
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Options to eligible persons and will determine whether such Options will be
Incentive Stock Options within the meaning of the Code ("ISOs") or Nonqualified
Stock Options ("NQSOs"), the number of Shares subject to the Option, the
Exercise Price of the Option, the period during which the Option may be
exercised, and all other terms and conditions of the Option, subject to the
following:

     5.1  Form of Option Grant.  Each Option granted under this Plan will be
          --------------------
evidenced by an Agreement which will expressly identify the Option as an ISO or
an NQSO ("Stock Option Agreement"), and will be in such form and contain such
provisions (which need not be the same for each Participant) as the Committee
may from time to time approve, and which will comply with and be subject to the
terms and conditions of this Plan.

     5.2  Date of Grant.  The date of grant of an Option will be the date on
          -------------
which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

     5.3  Exercise Period.  Options may be exercisable immediately (subject to
          ---------------
repurchase pursuant to Section 11 of this Plan) or may be exercisable within the
times or upon the events determined

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by the Committee as set forth in the Stock Option Agreement governing such
Option; provided, however, that no ISO will be exercisable after the expiration
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of ten (10) years from the date the Option is granted; and provided further that
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no ISO granted to a person who directly or by attribution owns more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any Parent or Subsidiary of the Company ("Ten Percent
Shareholder") will be exercisable after the expiration of five (5) years from
the date the ISO is granted. The Committee also may provide for Options to
become exercisable at one time or from time to time, periodically or otherwise,
in such number of Shares or percentage of Shares as the Committee determines.

     5.4  Exercise Price.  The Exercise Price of an Option will be determined by
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the Committee when the Option is granted and may not be less than 85% of the
Fair Market Value of the Shares on the date of grant; provided that (i) the
Exercise Price of an ISO will not be less than 100% of the Fair Market Value of
the Shares on the date of grant and (ii) the Exercise Price of any ISO granted
to a Ten Percent Shareholder will not be less than 110% of the Fair Market Value
of the Shares on the date of grant. Payment for the Shares purchased must be
made in accordance with Section 6 of this Plan.

     5.5  Method of Exercise.  Options may be exercised only by delivery to the
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Company of a written stock option exercise agreement (the "Exercise Agreement")
in a form approved by the Committee (which need not be the same for each
Participant), stating the number of Shares being purchased, the restrictions
imposed on the Shares purchased under such Exercise Agreement, if any, and such
representations and agreements regarding Participant's investment intent and
access to information and other matters, if any, as may be required or desirable
by the Company to comply with applicable securities laws, together with payment
in full of the Exercise Price, and any applicable taxes, for the number of
Shares being purchased.

     5.6  Termination.  Subject to earlier termination pursuant to Subsection
          -----------
17.1 and notwithstanding the exercise periods set forth in the Stock Option
Agreement, exercise of an Option (with the exception of a Nonemployee Director
Option) will always be subject to the following:

          (a)  If the Participant is Terminated for any reason except death or
Disability, then the Participant may exercise such Participant's Options, only
to the extent that such Options would have been exercisable upon the Termination
Date, no later than three (3) months after the Termination Date (or such other
time period as may be specified in the Stock Option Agreement) or such longer
time period not exceeding five (5) years after the Termination Date as may be
determined by the Committee, with any exercise beyond three (3) months after the
Termination Date deemed to be an NQSO, but in any event, no later than the
expiration date of the Options.

          (b)  If the Participant is Terminated because of Participant's death
or Disability (or the Participant dies within three (3) months after a
Termination other than because of Participant's death or Disability), then
Participant's Options may be exercised, only to the extent that such Options
would have been exercisable by Participant on the Termination Date and must be
exercised by Participant (or Participant's legal representative or authorized
assignee), no later than twelve (12) months after the Termination Date (or such
other time period as may be specified in the Stock Option Agreement) or such
longer time period not exceeding five (5) years after the Termination Date as
may be determined by the Committee, with any exercise beyond (a) three (3)
months after the Termination Date when the Termination is for any reason other
than the Participant's death or disability, within the meaning of Section
22(e)(3) of the Code, or (b) twelve (12) months after the Termination Date when
the Termination is for Participant's death or disability, within the meaning of
Section 22(e)(3) of the Code, deemed to be an NQSO, but in any event no later
than the expiration date of the Options.

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     5.7  Limitations on Exercise.  The Committee may specify a reasonable
          -----------------------
minimum number of Shares that may be purchased on exercise of an Option,
provided that such minimum number will not prevent Participant from exercising
the Option for the full number of Shares for which it is then exercisable.

     5.8  Limitations on ISOs.  The aggregate Fair Market Value (determined as
          -------------------
of the date of grant) of Shares with respect to which ISOs are exercisable for
the first time by a Participant during any calendar year (under this Plan or
under any other incentive stock option plan of the Company or any Parent or
Subsidiary of the Company) will not exceed $100,000. If the Fair Market Value of
Shares on the date of grant with respect to which ISOs are exercisable for the
first time by a Participant during any calendar year exceeds $100,000, then the
Options for the first $100,000 worth of Shares to become exercisable in such
calendar year will be ISOs and the Options for the amount in excess of $100,000
that become exercisable in that calendar year will be NQSOs. In the event that
the Code or the regulations promulgated thereunder are amended after the
Effective Date (as defined in Section 18 below) of this Plan to provide for a
different limit on the Fair Market Value of Shares permitted to be subject to
ISOs, then such different limit will be automatically incorporated herein and
will apply to any Options granted after the effective date of such amendment.

     5.9  Modification, Extension or Renewal. The Committee may modify, extend
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or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
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Exercise Price that would be permitted under Section 5.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

     5.10 No Disqualification.  Notwithstanding any other provision in this
          -------------------
Plan, no term of this Plan relating to ISOs will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

6.   PAYMENT FOR SHARE PURCHASES.
     ---------------------------

     6.1  Payment. Payment for Shares purchased pursuant to this Plan may be
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made in cash (by check) or, where expressly approved for the Participant by the
Committee and where permitted by law:

          (a)  by cancellation of indebtedness of the Company to the
Participant;

          (b)  by surrender of shares that either: (1) have been owned by the
Participant for more than six (6) months and have been paid for within the
meaning of SEC Rule 144 (and, if such shares were purchased from the Company by
use of a promissory note, such note has been fully paid with respect to such
shares); or (2) were obtained by the Participant in the public market;

          (c)  by tender of a full recourse promissory note having such terms as
may be approved by the Committee and bearing interest at a rate sufficient to
avoid imputation of income under Sections 483 and 1274 of the Code; provided,
however, that Participants who are not employees or directors of the Company
will not be entitled to purchase Shares with a promissory note unless the note
is adequately secured by collateral other than the Shares;

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          (d)  by waiver of compensation due or accrued to the Participant for
services rendered;

          (e)  provided that a public market for the Company's stock exists:

               (1)  through a "same day sale" commitment from the Participant
and a broker-dealer that is a member of the National Association of Securities
Dealers (an "NASD Dealer") whereby the Participant irrevocably elects to
exercise the Option and to sell a portion of the Shares so purchased to pay for
the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt
of such Shares to forward the Exercise Price directly to the Company; or

               (2)  through a "margin" commitment from the Participant and an
NASD Dealer whereby the Participant irrevocably elects to exercise the Option
and to pledge the Shares so purchased to the NASD Dealer in a margin account as
security for a loan from the NASD Dealer in the amount of the Exercise Price,
and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to
forward the Exercise Price directly to the Company; or

          (f)  by any combination of the foregoing.

     6.2  Loan Guarantees. The Committee may help the Participant pay for Shares
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purchased under this Plan by authorizing a guarantee by the Company of a third-
party loan to the Participant.

7.   TERMS AND CONDITIONS OF NONEMPLOYEE DIRECTOR OPTIONS.  Nonemployee Director
     ----------------------------------------------------
Options shall be evidenced by Stock Option Agreements specifying the number of
shares covered thereby, in such form as the Board shall from time to time
establish. Such Stock Option Agreements may incorporate all or any of the terms
of the Plan by reference and shall comply with and be subject to the following
terms and conditions:

     7.1  Automatic Grant. Subject to execution by a Nonemployee Director of an
          ---------------
appropriate Stock Option Agreement, Nonemployee Director Options shall be
granted automatically and without further action of the Board, as follows:

          (a)  Initial Option.  Each person who first becomes a Nonemployee
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Director after the effective date of the initial public offering of the
Company's Stock (the "IPO Date") shall be granted on the date he or she first
becomes a Nonemployee Director a Nonemployee Director Option to purchase 15,000
shares (an "Initial Option"). Notwithstanding anything herein to the contrary,
an Initial Option shall not be granted to a director who previously did not
qualify as a Nonemployee Director but subsequently becomes a Nonemployee
Director as a result of the termination of his or her status as an employee.

          (b)  Annual Option.  Each Nonemployee Director (including any director
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who previously did not qualify as a Nonemployee Director but who subsequently
becomes a Nonemployee Director) shall be granted on the date of each Nonemployee
Director's re-election to the Board at an annual meeting of the stockholders of
the Company which occurs after the Effective Date (an "Annual Meeting") an
Option to purchase 5,000 shares of Stock multiplied by the number of years in
the term for which the Nonemployee Director is elected to serve (an "Annual
Option"). Notwithstanding the foregoing, a Nonemployee Director who has not
served continuously as a Director of the Company for at least [6 months] as of
the date of such Annual Meeting shall not receive an Annual Option on such date.

          (c)  Right to Decline Nonemployee Director Option. Notwithstanding the
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foregoing, any person may elect not to receive a Nonemployee Director Option by
delivering written notice of such

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election to the Board no later than the day prior to the date such Nonemployee
Director Option would otherwise be granted. A person so declining a Nonemployee
Director Option shall receive no payment or other consideration in lieu of such
declined Nonemployee Director Option. A person who has declined a Nonemployee
Director Option may revoke such election by delivering written notice of such
revocation to the Board no later than the day prior to the date such Nonemployee
Director Option would be granted pursuant to Section 7.1(a) or (b), as the case
may be.

     7.2  Exercise Price.  The exercise price per share of Stock subject to
          --------------
a Nonemployee Director Option shall be the Fair Market Value of a share of Stock
on the date the Nonemployee Director Option is granted.

     7.3  Exercise Period.  Each Nonemployee Director Option shall terminate and
          ---------------
cease to be exercisable on the date ten (10) years after the date of grant of
the Nonemployee Director Option unless earlier terminated pursuant to the terms
of the Plan or the Stock Option Agreement.

     7.4  Right to Exercise Nonemployee Director Options.  Except as otherwise
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provided in the Plan or in the Option Agreement and provided that the Optionee's
service has not terminated prior to the respective date set forth below,
Nonemployee Director Option shall become vested and exercisable cumulatively as
follows: (a) 1/3 of the shares shall vest on the first anniversary of the date
of grant of the Initial Option, and (b) the remainder of the shares shall vest
in equal monthly increments over the following two (2) years.

          (a)  Effect of Corporate Transaction.  Notwithstanding the foregoing,
               -------------------------------
in the event of a corporate transaction described in Subsection 17.1 below which
occurs prior to the Participant's Termination of service, any unexercisable or
unvested portion of any outstanding Nonemployee Director Option held by the
Participant shall be immediately exercisable and vested in full as of the date
ten (10) days prior to the date of such transaction. The exercise or vesting of
any such Nonemployee Director Option shall be conditioned upon the consummation
of the corporate transaction. In addition, if the Nonemployee director no longer
serves as a Director of the Company after such transaction, any Nonemployee
Director Option held by such Participant, to the extent unexercised and
exercisable on the date of the corporate transaction, may be exercised within
twelve (12) months after the transaction, but in any event no later than the
Option Expiration Date.

8.   WITHHOLDING TAXES.
     -----------------

     8.1  Withholding Generally. Whenever Shares are to be issued in
          ---------------------
satisfaction of Options granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Options are to be made in cash, such payment will be net of
an amount sufficient to satisfy federal, state, and local withholding tax
requirements.

     8.2  Stock Withholding.  When, under applicable tax laws, a Participant
          -----------------
incurs tax liability in connection with the exercise or vesting of any Option
that is subject to tax withholding and the Participant is obligated to pay the
Company the amount required to be withheld, the Committee may in its sole
discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined (the "Tax Date"). All elections by a Participant to
have Shares withheld for this purpose will be made in accordance with the
requirements established by the Committee and be in writing in a form acceptable
to the Committee.

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9.   PRIVILEGES OF STOCK OWNERSHIP.
     -----------------------------

     9.1  Voting and Dividends. No Participant will have any of the rights of a
          --------------------
shareholder with respect to any Shares until the Shares are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a shareholder and have all the rights of a shareholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that the
                                                        --------
Participant will have no right to retain such stock dividends or stock
distributions with respect to Unvested Shares that are repurchased pursuant to
Section 11.

     9.2  Financial Statements.  Each Participant will be given access to
          --------------------
information concerning the Company equivalent to that information generally made
available to the Company's common stockholders.

10.  TRANSFERABILITY. Options granted under this Plan, and any interest therein,
     ---------------
will not be transferable or assignable by Participant, and may not be made
subject to execution, attachment or similar process, otherwise than by will or
by the laws of descent and distribution. During the lifetime of the Participant
an Option will be exercisable only by the Participant, and any elections with
respect to an Option, may be made only by the Participant. Notwithstanding the
foregoing, to the extent permitted by the Committee, in its discretion, and set
forth in the agreement evidencing such Option, an NQSO shall be assignable or
transferable, subject to the applicable limitations, if any, described in the
General Instructions to Form S-8 Registration Statement under the Securities
Act.

11.  RESTRICTIONS ON SHARES. At the discretion of the Committee, the Company may
     ----------------------
reserve to itself and/or its assignee(s) in the Stock Option Agreement a right
to repurchase Unvested Shares held by a Participant following such Participant's
Termination at any time within ninety (90) days (or such other time period as
specified by the Committee and set forth in the agreement evidencing the Option)
after Participant's Termination Date for cash and/or cancellation of purchase
money indebtedness, at the Participant's Exercise Price.

12.  CERTIFICATES.  All certificates for Shares or other securities delivered
     ------------
under this Plan will be subject to such stock transfer orders, legends and other
restrictions as the Committee may deem necessary or advisable, including
restrictions under any applicable federal, state or foreign securities law, or
any rules, regulations and other requirements of the SEC or any stock exchange
or automated quotation system upon which the Shares may be listed or quoted.

13.  ESCROW; PLEDGE OF SHARES.  To enforce any restrictions on a Participant's
     ------------------------
Shares, the Committee may require the Participant to deposit all certificates
representing Shares, together with stock powers or other instruments of transfer
approved by the Committee, appropriately endorsed in blank, with the Company or
an agent designated by the Company to hold in escrow until such restrictions
have lapsed or terminated, and the Committee may cause a legend or legends
referencing such restrictions to be placed on the certificates. Any Participant
who is permitted to execute a promissory note as partial or full consideration
for the purchase of Shares under this Plan will be required to pledge and
deposit with the Company all or part of the Shares so purchased as collateral to
secure the payment of Participant's obligation to the Company under the
promissory note; provided, however, that the Committee may require or accept
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other or additional forms of collateral to secure the payment of such obligation
and, in any event, the Company will have full recourse against the Participant
under the promissory note notwithstanding any pledge of the Participant's Shares
or other collateral. In connection with any pledge of the Shares, Participant
will be required to execute and deliver a written pledge agreement in such form
as the Committee will from time to time approve. The Shares purchased with the
promissory note may be released from the pledge on a pro rata basis as the
promissory note is paid.

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14.  EXCHANGE AND BUYOUT OF OPTIONS. The Committee may, at any time or from time
     ------------------------------
to time, authorize the Company, with the consent of the respective Participants,
to issue new Options in exchange for the surrender and cancellation of any or
all outstanding Options. The Committee may at any time buy from a Participant an
Option previously granted with payment in cash, Shares (including restricted
stock) or other consideration, based on such terms and conditions as the
Committee and the Participant may agree.

15.  SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.  An Option will not be
     ----------------------------------------------
effective unless such Option is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Option and also on the date of exercise or other issuance.
Notwithstanding any other provision in this Plan, the Company will have no
obligation to issue or deliver certificates for Shares under this Plan prior to
(a) obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable, and/or (b) compliance with any exemption,
completion of any registration or other qualification of such Shares under any
state or federal law or ruling of any governmental body that the Company
determines to be necessary or advisable. The Company will be under no obligation
to register the Shares with the SEC or to effect compliance with the exemption,
registration, qualification or listing requirements of any state securities
laws, stock exchange or automated quotation system, and the Company will have no
liability for any inability or failure to do so.

16.  NO OBLIGATION TO EMPLOY.  Nothing in this Plan or any Option granted under
     -----------------------
this Plan will confer or be deemed to confer on any Participant any right to
continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the right
of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

17.  CORPORATE TRANSACTIONS.
     ----------------------

     17.1  Assumption or Replacement of Options by Successor. In the event of
           -------------------------------------------------
(a) a dissolution or liquidation of the Company, (b) a merger or consolidation
in which the Company is not the surviving corporation (other than a merger or
                                                       ----- ----
consolidation with a wholly-owned subsidiary, a reincorporation of the Company
in a different jurisdiction, or other transaction in which there is no
substantial change in the shareholders of the Company or their relative stock
holdings and the Options granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which shareholders of the Company immediately prior to such merger
(other than any shareholder which merges, or which owns or controls another
corporation which merges, with the Company in such merger) cease to own their
shares or other equity interests in the Company, or (d) the sale of
substantially all of the assets of the Company, any or all outstanding Options
may be assumed, converted or replaced by the successor corporation (if any),
which assumption, conversion or replacement will be binding on all Participants.
In the alternative, the successor corporation may substitute equivalent Options
or provide substantially similar consideration to Participants as was provided
to shareholders (after taking into account the existing provisions of the
Options). The successor corporation may also issue, in place of outstanding
Shares of the Company held by the Participant, substantially similar shares or
other property subject to repurchase restrictions and other provisions no less
favorable to the Participant than those which applied to such outstanding Shares
immediately prior to such transaction described in this Subsection 17.1. In the
event such successor corporation (if any) refuses to assume or substitute
Options, as provided above, pursuant to a transaction described in this
Subsection 17.1, then notwithstanding any other provision in this Plan to the
contrary, such Options will expire on such transaction at such time and on such
conditions as the Board will determine.

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     17.2  Other Treatment of Options. Subject to any greater rights granted to
           --------------------------
Participants under the foregoing provisions of this Section 17, in the event of
the occurrence of any transaction described in Section 17.1, any outstanding
Options will be treated as provided in the applicable agreement or plan of
merger, consolidation, dissolution, liquidation or sale of assets.

     17.3  Assumption of Options by the Company. The Company, from time to time,
           ------------------------------------
also may substitute or assume outstanding options granted by another company,
whether in connection with an acquisition of such other company or otherwise, by
either (a) granting an Option under this Plan in substitution of such other
company's option, or (b) assuming such option as if it had been granted under
this Plan if the terms of such assumed option could be applied to an Option
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed option would have been eligible to be
granted an Option under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an option granted by
another company, the terms and conditions of such option will remain unchanged
(except that the exercise price and the number and nature of shares issuable
 ------
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

18.  ADOPTION AND SHAREHOLDER APPROVAL.  This Plan will become effective on the
     ---------------------------------
date that it is adopted by the Board (the "Effective Date"). This Plan will be
approved by the shareholders of the Company (excluding Shares issued pursuant to
this Plan), consistent with applicable laws, within twelve (12) months before or
after the Effective Date. Upon the Effective Date, the Board may grant Options
pursuant to this Plan; provided, however, that no Option may be exercised prior
                       --------  -------
to shareholder approval of this Plan.

19.  TERM OF PLAN/GOVERNING LAW. The Plan shall become effective upon the
     --------------------------
earlier of the Effective Date or its approval by the stockholders of the
Company. It shall continue in effect until the earlier of its termination by the
Board or until all Shares available for issuance hereunder have been issued and
all restrictions on such Shares under the terms of the Plan and the agreements
evidencing Options granted under the Plan have lapsed. However, all ISOs shall
be granted, if at all, within 10 years from the earlier of the Effective Date or
the date the Plan is duly approved by the Company's stockholders. This Plan and
all agreements hereunder shall be governed by and construed in accordance with
the laws of the State of California.

20.  AMENDMENT OR TERMINATION OF PLAN.  The Board may at any time terminate or
     --------------------------------
amend this Plan in any respect, including without limitation amendment of any
form of Stock Option Agreement or instrument to be executed pursuant to this
Plan; provided, however, that the Board will not, without the approval of the
      --------  -------
shareholders of the Company, amend this Plan in any manner that requires such
shareholder approval pursuant to the Code or the regulations promulgated
thereunder as such provisions apply to ISO plans or any other applicable law,
regulation or rule, including any rules applicable to the listing of the
Company's common stock or any stock exchange or market system.

21.  NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the Board,
     --------------------------
the submission of this Plan to the shareholders of the Company for approval, nor
any provision of this Plan will be construed as creating any limitations on the
power of the Board to adopt such additional compensation arrangements as it may
deem desirable, including, without limitation, the granting of stock options
otherwise than under this Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.

22.  DEFINITIONS.  As used in this Plan, the following terms will have the
     -----------
following meanings:

                                       9
<PAGE>

"Board" means the Board of Directors of the Company.

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

"Committee" means the committee appointed by the Board to administer this Plan,
or if no committee is appointed, the Board.

"Company" means Extricity, Inc. or any successor corporation.

"Disability" means a disability, whether temporary or permanent, partial or
total, as determined by the Committee.

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

"Exercise Price" means the price at which a holder of an Option may purchase the
Shares issuable upon exercise of the Option.

"Fair Market Value" means, as of any date, the value of a share of the Company's
Common Stock determined as follows:

     (a)  if such Common Stock is then quoted on the Nasdaq National Market, its
closing price on the Nasdaq National Market on the date of determination as
reported in The Wall Street Journal;
            -----------------------

     (b)  if such Common Stock is publicly traded and is then listed on a
national securities exchange, its closing price on the date of determination on
the principal national securities exchange on which the Common Stock is listed
or admitted to trading as reported in The Wall Street Journal;
                                      -----------------------

     (c)  if such Common Stock is publicly traded but is not quoted on the
Nasdaq National Market nor listed or admitted to trading on a national
securities exchange, the average of the closing bid and asked prices on the date
of determination as reported by The Wall Street Journal (or, if not so reported,
                                -----------------------
as otherwise reported by any newspaper or other source as the Board may
determine); or

     (d)  if none of the foregoing is applicable, by the Committee in good
faith.

"Insider" means an officer or director of the Company or any other person whose
transactions in the Company's Common Stock are subject to Section 16 of the
Exchange Act.

"Nonemployee Director" means a Director of the Company who is not an employee.

"Nonemployee Director Option" means a right to purchase Shares granted to a
Nonemployee Director pursuant to the terms and conditions of Section 7.
Nonemployee Director Options shall be NOSOs.

"Option" means an award of an option to purchase Shares pursuant to Section 5.

"Parent" means any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company if each of such corporations other than the
Company owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain.

"Participant" means a person who receives an Option under this Plan.

"Plan" means this Extricity, Inc. 1996 Stock Option Plan, as amended from time
to time.

                                       10
<PAGE>

"SEC" means the Securities and Exchange Commission.

"Securities Act" means the Securities Act of 1933, as amended.

"Shares" means shares of the Company's Common Stock reserved for issuance under
this Plan, as adjusted pursuant to Sections 2 and 17, and any successor
security.

"Subsidiary" means any corporation (other than the Company) in an unbroken chain
of corporations beginning with the Company if each of the corporations other
than the last corporation in the unbroken chain owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

"Termination" or "Terminated" means, for purposes of this Plan with respect to a
Participant, that the Participant has for any reason ceased to provide services
as an employee, officer, director or consultant to the Company or a Parent or
Subsidiary of the Company. An employee will not be deemed to have ceased to
provide services in the case of (i) sick leave, (ii) military leave, or (iii)
any other leave of absence approved by the Committee, provided that such leave
is for a period of not more than 90 days unless reemployment upon the expiration
of such leave is guaranteed by contract or statute, or unless provided otherwise
pursuant to formal policy adopted from time to time by the Company and issued
and promulgated to employees in writing. In the case of any employee on an
approved leave of absence, the Committee may make such provisions respecting
suspension of vesting of the Option while on leave from the employ of the
Company or a Subsidiary as it may deem appropriate, except that in no event may
an Option be exercised after the expiration of the term set forth in the Stock
Option Agreement. The Committee will have sole discretion to determine whether a
Participant has ceased to provide services and the effective date on which the
Participant ceased to provide services (the "Termination Date").

"Unvested Shares" means "Unvested Shares" as defined in Section 2.2 of the Stock
Option Agreement.

"Vested Shares" means "Vested Shares" as defined in Section 2.2 of the Stock
Option Agreement.

                                       11<PAGE>

                                                                    Exhibit 10.3

                                EXTRICITY, INC.
                       2000 EMPLOYEE STOCK PURCHASE PLAN

     1.   Establishment, Purpose and Term of Plan.
          ---------------------------------------

          1.1  Establishment. The Extricity, Inc. 2000 Employee Stock Purchase
Plan (the "Plan") is hereby established effective as of the effective date of
the initial registration by the Company of its Stock under Section 12 of the
Securities Exchange Act of 1934, as amended (the "Effective Date").

          1.2  Purpose. The purpose of the Plan is to advance the interests of
the Company and its stockholders by providing an incentive to attract and retain
Eligible Employees of the Participating Company Group and by motivating such
persons to contribute to the growth and profitability of the Participating
Company Group. The Plan provides such Eligible Employees with an opportunity to
acquire a proprietary interest in the Company through the purchase of Stock. The
Company intends that the Plan qualify as an "employee stock purchase plan" under
Section 423 of the Code (including any amendments or replacements of such
section), and the Plan shall be so construed.

          1.3  Term of Plan. The Plan shall continue in effect until the earlier
of its termination by the Board or the date on which all of the shares of Stock
available for issuance under the Plan have been issued.

     2.   Definitions and Construction.
          ----------------------------

          2.1  Definitions. Any term not expressly defined in the Plan but
defined for purposes of Section 423 of the Code shall have the same definition
herein. Whenever used herein, the following terms shall have their respective
meanings set forth below:

               (a)  "Board" means the Board of Directors of the Company. If one
or more Committees have been appointed by the Board to administer the Plan,
"Board" also means such Committee(s).

               (b)  "Code" means the Internal Revenue Code of 1986, as amended,
and any applicable regulations promulgated thereunder.

               (c)  "Committee" means a committee of the Board duly appointed to
administer the Plan and having such powers as specified by the Board. Unless the
powers of the Committee have been specifically limited, the Committee shall have
all of the powers of the Board granted herein, including, without limitation,
the power to amend or terminate the Plan at any time, subject to the terms of
the Plan and any applicable limitations imposed by law.

               (d)  "Company" means Extricity, Inc., a Delaware corporation, or
any successor corporation thereto.
<PAGE>

               (e)  "Compensation" means, with respect to any Offering Period,
base wages or salary, overtime pay, bonuses, commissions, shift differentials,
payments for paid time off, payments in lieu of notice, and any of such
compensation deferred under any program or plan established by a Participating
Company, including, without limitation, pursuant to Section 401(k) or Section
125 of the Code. Compensation shall be limited to amounts actually payable in
cash directly to the Participant or deferred by the Participant during the
Offering Period. However, notwithstanding the foregoing, Compensation shall not
include sign-on bonuses, payments pursuant to a severance agreement, termination
pay, reimbursements of expenses, allowances, disability pay, workers'
compensation or any amount deemed received without the actual transfer of cash
or any amounts directly or indirectly paid pursuant to the Plan or any other
stock purchase or stock option plan, or any other compensation not included
above.

               (f)  "Eligible Employee" means an Employee who meets the
requirements set forth in Section 5 for eligibility to participate in the Plan.

               (g)  "Employee" means a person treated as an employee of a
Participating Company for purposes of Section 423 of the Code. A Participant
shall be deemed to have ceased to be an Employee either upon an actual
termination of employment or upon the corporation employing the Participant
ceasing to be a Participating Company. For purposes of the Plan, an individual
shall not be deemed to have ceased to be an Employee while on any military
leave, sick leave, or other bona fide leave of absence approved by the Company
of ninety (90) days or less. If an individual's leave of absence exceeds ninety
(90) days, the individual shall be deemed to have ceased to be an Employee on
the ninety-first (91st) day of such leave unless the individual's right to
reemployment with the Participating Company Group is guaranteed either by
statute or by contract. The Company shall determine in good faith and in the
exercise of its discretion whether an individual has become or has ceased to be
an Employee and the effective date of such individual's employment or
termination of employment, as the case may be. For purposes of an individual's
participation in or other rights, if any, under the Plan as of the time of the
Company's determination, all such determinations by the Company shall be final,
binding and conclusive, notwithstanding that the Company or any governmental
agency subsequently makes a contrary determination.

               (h)  "Entry Date" means (i) the Offering Date, or (ii) with
respect to persons who first become Eligible Employees after the commencement of
an Offering Period (as defined in Section 6.1 below) but prior to the
commencement of the final Purchase Period of the Offering Period, or did not
previously elect to participate in the Offering Period, the first day of the
Purchase Period following the date on which such person becomes an Eligible
Employee, or elects to enroll in the Offering Period, respectively.
Notwithstanding the foregoing, in the event that the Fair Market Value of a
share of Stock on a Purchase Date of an Offering Period (other than the final
Purchase Date) is less than the Fair Market Value of a share of Stock on a Entry
Date for a Participant who was participating in the Offering as of such Purchase
Date, the Entry Date for such Participant for the remainder of the Offering
shall be the first day of the next Purchase Period immediately following such
Purchase Date.
<PAGE>

               (i)  "Fair Market Value" means, as of any date:

                    (i)    If the Stock is then listed on a national or regional
securities exchange or market system or is regularly quoted by a recognized
securities dealer, the closing sale price of a share of Stock (or the mean of
the closing bid and asked prices if the Stock is so quoted instead) as quoted on
the Nasdaq National Market, the Nasdaq SmallCap Market or such other national or
regional securities exchange or market system constituting the primary market
for the Stock, or by such recognized securities dealer, as reported in The Wall
Street Journal or such other source as the Company deems reliable. If the
relevant date does not fall on a day on which the Stock has traded on such
securities exchange or market system or has been quoted by such securities
dealer, the date on which the Fair Market Value is established shall be the last
day on which the Stock was so traded or quoted prior to the relevant date, or
such other appropriate day as determined by the Board, in its discretion.

                    (ii)   If, on the relevant date, the Stock is not then
listed on a national or regional securities exchange or market system or
regularly quoted by a recognized securities dealer, the Fair Market Value of a
share of Stock shall be as determined in good faith by the Board.

                    (iii)  Notwithstanding the foregoing, the Fair Market Value
of a share of Stock on the Effective Date shall be deemed to be the public
offering price set forth in the final prospectus filed with the Securities and
Exchange Commission in connection with the Company's initial public offering of
the Stock.

               (j)  "Offering" means an offering of Stock as provided in Section
6.

               (k)  "Offering Date" means, for any Offering, the first day of
the Offering Period.

               (l)  "Offering Period" means a period established in accordance
with Section 6.1.

               (m)  "Parent Corporation" means any present or future "parent
corporation" of the Company, as defined in Section 424(e) of the Code.

               (n)  "Participant" means an Eligible Employee who has become a
participant in an Offering Period in accordance with Section 7 and remains a
participant in accordance with the Plan.

               (o)  "Participating Company" means the Company or any Parent
Corporation or Subsidiary Corporation designated by the Board as a corporation
the Employees of which may, if Eligible Employees, participate in the Plan. The
Board shall have the sole and absolute discretion to determine from time to time
which Parent Corporations or Subsidiary Corporations shall be Participating
Companies.

               (p)  "Participating Company Group" means, at any point in time,
the Company and all other corporations collectively which are then Participating
Companies.
<PAGE>

               (q)  "Purchase Date" means, for any Purchase Period, the last day
of such period.

               (r)  "Purchase Period" means a period established in accordance
with Section 6.2.

               (s)  "Purchase Price" means the price at which a share of Stock
may be purchased under the Plan, as determined in accordance with Section 9.

               (t)  "Purchase Right" means an option granted to a Participant
pursuant to the Plan to purchase such shares of Stock as provided in Section 8,
which the Participant may or may not exercise during the Offering Period in
which such option is outstanding. Such option arises from the right of a
Participant to withdraw any accumulated payroll deductions of the Participant
not previously applied to the purchase of Stock under the Plan and to terminate
participation in the Plan at any time during an Offering Period.

               (u)  "Stock" means the common stock of the Company, as adjusted
from time to time in accordance with Section 4.2.

               (v)  "Subscription Agreement" means a written agreement in such
form as specified by the Company, stating an Employee's election to participate
in the Plan and authorizing payroll deductions under the Plan from the
Employee's Compensation.

               (w)  "Subscription Date" means the last business day prior to an
Entry Date or such other date as the Company shall establish.

               (x)  "Subsidiary Corporation" means any present or future
"subsidiary corporation" of the Company, as defined in Section 424(f) of the
Code.

          2.2  Construction. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of the Plan. Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the singular. Use
of the term "or" is not intended to be exclusive, unless the context clearly
requires otherwise.

     3.   Administration.
          --------------

          3.1  Administration by the Board.  The Plan shall be administered by
the Board.  All questions of interpretation of the Plan, of any form of
agreement or other document employed by the Company in the administration of the
Plan, or of any Purchase Right shall be determined by the Board and shall be
final and binding upon all persons having an interest in the Plan or the
Purchase Right.  Subject to the provisions of the Plan, the Board shall
determine all of the relevant terms and conditions of Purchase Rights; provided,
however, that all Participants granted Purchase Rights pursuant to an Offering
shall have the same rights and privileges within the meaning of Section
423(b)(5) of the Code.  All expenses incurred in connection with the
administration of the Plan shall be paid by the Company.
<PAGE>

          3.2  Authority of Officers. Any officer of the Company shall have the
authority to act on behalf of the Company with respect to any matter, right,
obligation, determination or election that is the responsibility of or that is
allocated to the Company herein, provided that the officer has apparent
authority with respect to such matter, right, obligation, determination or
election.

          3.3  Policies and Procedures Established by the Company. The Company
may, from time to time, consistent with the Plan and the requirements of Section
423 of the Code, establish, change or terminate such rules, guidelines,
policies, procedures, limitations, or adjustments as deemed advisable by the
Company, in its discretion, for the proper administration of the Plan,
including, without limitation, (a) a minimum payroll deduction amount required
for participation in an Offering, (b) a limitation on the frequency or number of
changes permitted in the rate of payroll deduction during an Offering, (c) an
exchange ratio applicable to amounts withheld in a currency other than United
States dollars, (d) a payroll deduction greater than or less than the amount
designated by a Participant in order to adjust for the Company's delay or
mistake in processing a Subscription Agreement or in otherwise effecting a
Participant's election under the Plan or as advisable to comply with the
requirements of Section 423 of the Code, and (e) determination of the date and
manner by which the Fair Market Value of a share of Stock is determined for
purposes of administration of the Plan.

          3.4  Indemnification. In addition to such other rights of
indemnification as they may have as members of the Board or officers or
employees of the Participating Company Group, members of the Board and any
officers or employees of the Participating Company Group to whom authority to
act for the Board or the Company is delegated shall be indemnified by the
Company against all reasonable expenses, including attorneys' fees, actually and
necessarily incurred in connection with the defense of any action, suit or
proceeding, or in connection with any appeal therein, to which they or any of
them may be a party by reason of any action taken or failure to act under or in
connection with the Plan, or any right granted hereunder, and against all
amounts paid by them in settlement thereof (provided such settlement is approved
by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such person is liable for gross negligence, bad faith or
intentional misconduct in duties; provided, however, that within sixty (60) days
after the institution of such action, suit or proceeding, such person shall
offer to the Company, in writing, the opportunity at its own expense to handle
and defend the same.

     4.   Shares Subject to Plan.
          ----------------------

          4.1  Maximum Number of Shares Issuable. Subject to adjustment as
provided in Section 4.2, the maximum aggregate number of shares of Stock that
may be issued under the Plan shall be 2,000,000, cumulatively increased on
January 1, 2002 and each January 1 thereafter until and including January 1,
2011 (the "Annual Increase") by the lesser of (a) 2% of the shares of issued and
outstanding Stock on the immediately preceding December 31, (b) 1,000,000
shares, or (c) such lesser number of shares determined by the Board, and shall
consist of authorized but unissued or reacquired shares of Stock, or any
combination thereof. If an outstanding Purchase Right for any reason expires or
is terminated or canceled, the shares of
<PAGE>

Stock allocable to the unexercised portion of that Purchase Right shall again be
available for issuance under the Plan.

          4.2  Adjustments for Changes in Capital Structure. In the event of any
stock dividend, stock split, reverse stock split, recapitalization, combination,
reclassification or similar change in the capital structure of the Company, or
in the event of any merger (including a merger effected for the purpose of
changing the Company's domicile), sale of assets or other reorganization in
which the Company is a party, appropriate adjustments shall be made in the
number and class of shares subject to the Plan, the Annual Increase, the limit
on the shares which may be purchased by any Participant on a Purchase Date (as
described in Section 8.1) and each Purchase Right, and in the Purchase Price. If
a majority of the shares of the same class as the shares subject to outstanding
Purchase Rights are exchanged for, converted into, or otherwise become (whether
or not pursuant to an Ownership Change Event) shares of another corporation (the
"New Shares"), the Board may unilaterally amend the outstanding Purchase Rights
to provide that such Purchase Rights are exercisable for New Shares. In the
event of any such amendment, the number of shares subject to, and the Purchase
Price of, the outstanding Purchase Rights shall be adjusted in a fair and
equitable manner, as determined by the Board, in its discretion. Notwithstanding
the foregoing, any fractional share resulting from an adjustment pursuant to
this Section 4.2 shall be rounded down to the nearest whole number, and in no
event may the Purchase Price be decreased to an amount less than the par value,
if any, of the stock subject to the Purchase Right. The adjustments determined
by the Board pursuant to this Section 4.2 shall be final, binding and
conclusive.

     5.   Eligibility.
          -----------

          5.1  Employees Eligible to Participate. Each Employee of a
Participating Company is eligible to participate in the Plan and shall be deemed
an Eligible Employee, except any Employee who is either: (a) customarily
employed by the Participating Company Group for twenty (20) hours or less per
week or (b) customarily employed by the Participating Company Group for not more
than five (5) months in any calendar year.

          5.2  Exclusion of Certain Stockholders. Notwithstanding any provision
of the Plan to the contrary, no Employee shall be granted a Purchase Right under
the Plan if, immediately after such grant, the Employee would own or hold
options to purchase stock of the Company or of any Parent Corporation or
Subsidiary Corporation possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of such corporation, as
determined in accordance with Section 423(b)(3) of the Code. For purposes of
this Section 5.2, the attribution rules of Section 424(d) of the Code shall
apply in determining the stock ownership of such Employee.

     6.   Offerings.
          ---------

          6.1  Offering Periods.

               (a)  Initial Offering Period. The Plan shall be implemented by
sequential Offerings (an "Offering Period"). The first Offering Period shall
commence on the Effective Date and end on the last day of July, 2002 (the
"Initial Offering Period").
<PAGE>

               (b)  Subsequent Offering Periods. After the completion of the
Initial Offering Period, subsequent Offerings shall commence on the first day of
August of each year and end on the last day of July occurring thereafter, and
will have a duration of twelve (12) months.

          6.2  Purchase Periods. The Initial Offering Period shall consist of
four (4) consecutive Purchase Periods of approximately six (6) months duration,
except that the first Purchase Period shall end on January 31, 2001, and
subsequent Offering Periods shall consist of two (2) consecutive Purchase
Periods of six (6) months duration. Purchase Periods shall generally commence on
the first day of February and August and shall end on the last day of July and
January, respectively, occurring thereafter.

          6.3  Discretion to Vary Duration. Notwithstanding the foregoing, the
Board may establish a different duration for one or more Offering Periods or
Purchase Periods or different commencing or ending dates for such periods;
provided, however, that no Offering Period may have a duration exceeding twenty-
seven (27) months. If the first or last day of an Offering Period or a Purchase
Period is not a day on which the national securities exchanges or Nasdaq Stock
Market are open for trading, the Company shall specify the trading day that will
be deemed the first or last day, as the case may be, of the period.

     7.   Participation in the Plan.
          -------------------------

          7.1  Initial Participation. An Eligible Employee may become a
Participant in an Offering Period by delivering a properly completed
Subscription Agreement to the office designated by the Company not later than
the close of business for such office on the Subscription Date established by
the Company for the applicable Entry Date. An Eligible Employee who does not
deliver a properly completed Subscription Agreement to the Company's designated
office on or before the Subscription Date for an Entry Date shall not
participate in the Plan for that Offering Period or for any subsequent Offering
Period unless the Eligible Employee subsequently delivers a properly completed
Subscription Agreement to the appropriate office of the Company on or before the
Subscription Date for a subsequent Entry Date.

          7.2  Continued Participation. A Participant shall automatically
participate in the next Offering Period commencing immediately after the final
Purchase Date of each Offering Period in which the Participant participates
provided that the Participant remains an Eligible Employee on the Offering Date
of the new Offering Period and has not either (a) withdrawn from the Plan
pursuant to Section 12.1 or (b) terminated employment as provided in Section 13.
A Participant who may automatically participate in a subsequent Offering Period,
as provided in this Section, is not required to deliver any additional
Subscription Agreement for the subsequent Offering Period in order to continue
participation in the Plan. However, a Participant may deliver a new Subscription
Agreement for a subsequent Offering Period in accordance with the procedures set
forth in Section 7.1 if the Participant desires to change any of the elections
contained in the Participant's then effective Subscription Agreement.
<PAGE>

     8.   Right to Purchase Shares.
          ------------------------

          8.1  Grant of Purchase Right. Except as set forth below (or otherwise
specified by the Board prior to the Offering Date), on the Offering Date of each
Offering Period, each Participant in such Offering Period shall be granted
automatically, on his or her Entry Date, a Purchase Right consisting of an
option to purchase, on each Purchase Date within such Offering Period, that
number of whole shares of Stock determined by dividing the aggregate payroll
deductions collected from the Participant by the applicable Purchase Price on
such Purchase Date; provided, however, that no Participant may purchase more
than 2,500 shares of Stock on any Purchase Date.

          8.2  Calendar Year Purchase Limitation. Notwithstanding any provision
of the Plan to the contrary, no Participant shall be granted a Purchase Right
which permits his or her right to purchase shares of Stock under the Plan to
accrue at a rate which, when aggregated with such Participant's rights to
purchase shares under all other employee stock purchase plans of a Participating
Company intended to meet the requirements of Section 423 of the Code, exceeds
Twenty-Five Thousand Dollars ($25,000) in Fair Market Value (or such other
limit, if any, as may be imposed by the Code) for each calendar year in which
such Purchase Right is outstanding at any time. For purposes of the preceding
sentence, the Fair Market Value of shares purchased during a given Offering
Period shall be determined as of the Offering Date for such Offering Period. The
limitation described in this Section shall be applied in conformance with
applicable regulations under Section 423(b)(8) of the Code.

     9.   Purchase Price.
          --------------

          The Purchase Price at which each share of Stock may be acquired in an
Offering Period upon the exercise of all or any portion of a Purchase Right
shall be established by the Board; provided, however, that the Purchase Price on
each Purchase Date shall not be less than eighty-five percent (85%) of the
lesser of (a) the Fair Market Value of a share of Stock on the Participant's
Entry Date or (b) the Fair Market Value of a share of Stock on the Purchase
Date.  Unless otherwise provided by the Board prior to the commencement of an
Offering Period, the Purchase Price on each Purchase Date during that Offering
Period shall be eighty-five percent (85%) of the lesser of (a) the Fair Market
Value of a share of Stock on the Participant's Entry Date, or (b) the Fair
Market Value of a share of Stock on the Purchase Date.

     10.  Accumulation of Purchase Price through Payroll Deduction.
          --------------------------------------------------------

          Shares of Stock acquired pursuant to the exercise of all or any
portion of a Purchase Right may be paid for only by means of payroll deductions
from the Participant's Compensation accumulated during the Offering Period for
which such Purchase Right was granted, subject to the following:

          10.1 Amount of Payroll Deductions. Except as otherwise provided
herein, the amount to be deducted under the Plan from a Participant's
Compensation on each payday during an Offering Period shall be determined by the
Participant's Subscription Agreement. The Subscription Agreement shall set forth
the percentage of the Participant's Compensation to be deducted on each payday
during an Offering Period in whole percentages of not less than one
<PAGE>

percent (1%) (except as a result of an election pursuant to Section 10.3 to stop
payroll deductions) or more than twenty percent (20%).  The Board may change the
foregoing limits on payroll deductions effective as of any Offering Date.

          10.2 Commencement of Payroll Deductions. Payroll deductions shall
commence on the first payday following the Offering Date and shall continue to
the end of the Offering Period unless sooner altered or terminated as provided
herein.

          10.3 Election to Change or Stop Payroll Deductions. During an Offering
Period, a Participant may elect to increase or decrease the rate of or to stop
deductions from his or her Compensation by delivering to the Company's
designated office an amended Subscription Agreement authorizing such change on
or before the Change Notice Date, as defined below. A Participant may elect,
after the first payday of an Offering Period, to decrease the rate of his or her
payroll deductions to zero percent (0%), and shall nevertheless remain a
Participant in the current Offering Period unless such Participant withdraws
from the Plan as provided in Section 12.1. The "Change Notice Date" shall be the
day immediately prior to the beginning of the first pay period for which such
election is to be effective, unless a different date is established by the
Company and announced to the Participants.

          10.4 Administrative Suspension of Payroll Deductions. The Company may,
in its sole discretion, suspend a Participant's payroll deductions under the
Plan as the Company deems advisable to avoid accumulating payroll deductions in
excess of the amount that could reasonably be anticipated to purchase the
maximum number of shares of Stock permitted (a) under the Participant's Purchase
Right or (b) during a calendar year under the limit set forth in Section 8.2.
Payroll deductions shall be resumed at the rate specified in the Participant's
then effective Subscription Agreement at the beginning, respectively, of (a) the
next Offering Period, provided that the individual is a Participant in such
Offering Period or (b) the next Purchase Period the Purchase Date of which falls
in the following calendar year, unless the Participant has either withdrawn from
the Plan as provided in Section 12.1 or has ceased to be an Eligible Employee.

          10.5 Participant Accounts. Individual bookkeeping accounts shall be
maintained for each Participant. All payroll deductions from a Participant's
Compensation shall be credited to such Participant's Plan account and shall be
deposited with the general funds of the Company. All payroll deductions received
or held by the Company may be used by the Company for any corporate purpose.

          10.6 No Interest Paid. Interest shall not be paid on sums deducted
from a Participant's Compensation pursuant to the Plan.

          10.7 Voluntary Withdrawal from Plan Account. A Participant may
withdraw all or any portion of the payroll deductions credited to his or her
Plan account and not previously applied toward the purchase of Stock by
delivering to the Company's designated office a written notice on a form
provided by the Company for such purpose. A Participant who withdraws the entire
remaining balance credited to his or her Plan account shall be deemed to have
withdrawn from the Plan in accordance with Section 12.1. Amounts withdrawn shall
be returned to the Participant as soon as practicable after the Company's
receipt of the notice of
<PAGE>

withdrawal and may not be applied to the purchase of shares in any Offering
under the Plan. The Company may from time to time establish or change
limitations on the frequency of withdrawals permitted under this Section,
establish a minimum dollar amount that must be retained in the Participant's
Plan account, or terminate the withdrawal right provided by this Section.

     11.  Purchase of Shares.
          ------------------

          11.1 Exercise of Purchase Right. On each Purchase Date, each
Participant who has not withdrawn from the Plan and whose participation in the
Offering has not otherwise terminated before such Purchase Date shall
automatically acquire pursuant to the exercise of the Participant's Purchase
Right the number of whole shares of Stock determined by dividing (a) the total
amount of the Participant's payroll deductions accumulated in the Participant's
Plan account during the Offering Period and not previously applied toward the
purchase of Stock by (b) the Purchase Price. However, in no event shall the
number of shares purchased by the Participant during an Offering Period exceed
the number of shares subject to the Participant's Purchase Right. No shares of
Stock shall be purchased on a Purchase Date on behalf of a Participant whose
participation in the Offering or the Plan has terminated before such Purchase
Date.

          11.2 Pro Rata Allocation of Shares. If the number of shares of Stock
which might be purchased by all Participants in the Plan on a Purchase Date
exceeds the number of shares of Stock available in the Plan as provided in
Section 4.1, the Company shall make a pro rata allocation of the remaining
shares in as uniform a manner as practicable and as the Company determines to be
equitable. Any fractional share resulting from such pro rata allocation to any
Participant shall be disregarded.

          11.3 Delivery of Certificates. As soon as practicable after each
Purchase Date, the Company shall arrange the delivery to each Participant of a
certificate representing the shares acquired by the Participant on such Purchase
Date; provided that the Company may deliver such shares to a broker designated
by the Company that will hold such shares for the benefit of the Participant.
Shares to be delivered to a Participant under the Plan shall be registered in
the name of the Participant, or, if requested by the Participant, in the name of
the Participant and his or her spouse, or, if applicable, in the names of the
heirs of the Participant.

          11.4 Return of Cash Balance. Any cash balance remaining in a
Participant's Plan account following any Purchase Date shall be refunded to the
Participant as soon as practicable after such Purchase Date. However, if the
cash balance to be returned to a Participant pursuant to the preceding sentence
is less than the amount that would have been necessary to purchase an additional
whole share of Stock on such Purchase Date, the Company may retain the cash
balance in the Participant's Plan account to be applied toward the purchase of
shares of Stock in the subsequent Purchase Period or Offering Period, as the
case may be.

          11.5 Tax Withholding. At the time a Participant's Purchase Right is
exercised, in whole or in part, or at the time a Participant disposes of some or
all of the shares of Stock he or she acquires under the Plan, the Participant
shall make adequate provision for the federal, state, local and foreign tax
withholding obligations, if any, of the Participating Company Group which arise
upon exercise of the Purchase Right or upon such disposition of shares,
<PAGE>

respectively. The Participating Company Group may, but shall not be obligated
to, withhold from the Participant's compensation the amount necessary to meet
such withholding obligations.

          11.6 Expiration of Purchase Right. Any portion of a Participant's
Purchase Right remaining unexercised after the end of the Offering Period to
which the Purchase Right relates shall expire immediately upon the end of the
Offering Period.

          11.7 Provision of Reports and Stockholder Information to Participants.
Each Participant who has exercised all or part of his or her Purchase Right
shall receive, as soon as practicable after the Purchase Date, a report of such
Participant's Plan account setting forth the total payroll deductions
accumulated prior to such exercise, the number of shares of Stock purchased, the
Purchase Price for such shares, the date of purchase and the cash balance, if
any, remaining immediately after such purchase that is to be refunded or
retained in the Participant's Plan account pursuant to Section 11.4. The report
required by this Section may be delivered in such form and by such means,
including by electronic transmission, as the Company may determine. In addition,
each Participant shall be provided information concerning the Company equivalent
to that information provided generally to the Company's common stockholders.

     12.  Withdrawal from Offering or Plan.
          --------------------------------

          12.1 Voluntary Withdrawal. A Participant may withdraw from the Plan by
signing and delivering to the Company's designated office a written notice of
withdrawal on a form provided by the Company for this purpose. Such withdrawal
may be elected at any time prior to the end of an Offering Period; provided,
however, that if a Participant withdraws from the Plan after a Purchase Date,
the withdrawal shall not affect shares of Stock acquired by the Participant on
such Purchase Date. A Participant who voluntarily withdraws from the Plan or an
Offering is prohibited from resuming participation in the Plan in the same
Offering from which he or she withdrew, but may participate in any subsequent
Offering by again satisfying the requirements of Sections 5 and 7.1. The Company
may impose, from time to time, a requirement that the notice of withdrawal be on
file with the Company's designated office for a reasonable period prior to the
effectiveness of the Participant's withdrawal.

          12.2 Return of Payroll Deductions. Upon a Participant's voluntary
withdrawal from the Plan pursuant to Section 12.1, the Participant's accumulated
payroll deductions which have not been applied toward the purchase of shares of
Stock shall be refunded to the Participant as soon as practicable after the
withdrawal, without the payment of any interest, and the Participant's interest
in the Plan or the Offering, as applicable, shall terminate. Such accumulated
payroll deductions to be refunded in accordance with this Section may not be
applied to any other Offering under the Plan.

     13.  Termination of Employment or Eligibility.
          ----------------------------------------

          Upon a Participant's ceasing, prior to a Purchase Date, to be an
Employee of the Participating Company Group for any reason, including
retirement, disability or death, or upon the failure of a Participant to remain
an Eligible Employee, the Participant's participation in the Plan shall
terminate immediately. In such event, the Participant's accumulated payroll
deductions which have not been applied toward the purchase of shares shall, as
soon as

<PAGE>

practicable, be returned to the Participant or, in the case of the
Participant's death, to the Participant's beneficiary designated in accordance
with Section 20, if any, or legal representative, and all of the Participant's
rights under the Plan shall terminate. Interest shall not be paid on sums
returned pursuant to this Section 13. A Participant whose participation has been
so terminated may again become eligible to participate in the Plan by satisfying
the requirements of Sections 5 and 7.1.

     14.  Change in Control.
          -----------------

          14.1 Definitions.

               (a)  An "Ownership Change Event" shall be deemed to have occurred
if any of the following occurs with respect to the Company: (i) the direct or
indirect sale or exchange in a single or series of related transactions by the
stockholders of the Company of more than fifty percent (50%) of the voting stock
of the Company; (ii) a merger or consolidation in which the Company is a party;
(iii) the sale, exchange, or transfer of all or substantially all of the assets
of the Company; or (iv) a liquidation or dissolution of the Company.

               (b)  A "Change in Control" shall mean an Ownership Change Event
or a series of related Ownership Change Events (collectively, the "Transaction")
wherein the stockholders of the Company immediately before the Transaction do
not retain immediately after the Transaction, in substantially the same
proportions as their ownership of shares of the Company's voting stock
immediately before the Transaction, direct or indirect beneficial ownership of
more than fifty percent (50%) of the total combined voting power of the
outstanding voting stock of the Company or the corporation or corporations to
which the assets of the Company were transferred (the "Transferee
Corporation(s)"), as the case may be. For purposes of the preceding sentence,
indirect beneficial ownership shall include, without limitation, an interest
resulting from ownership of the voting stock of one or more corporations which,
as a result of the Transaction, own the Company or the Transferee
Corporation(s), as the case may be, either directly or through one or more
subsidiary corporations. The Board shall have the right to determine whether
multiple sales or exchanges of the voting stock of the Company or multiple
Ownership Change Events are related, and its determination shall be final,
binding and conclusive.

          14.2 Effect of Change in Control on Purchase Rights. In the event of
a Change in Control, the surviving, continuing, successor, or purchasing
corporation or parent corporation thereof, as the case may be (the "Acquiring
Corporation"), may assume the Company's rights and obligations under the Plan.
If the Acquiring Corporation elects not to assume the Company's rights and
obligations under outstanding Purchase Rights, the Purchase Date of the then
current Purchase Period shall be accelerated to a date before the date of the
Change in Control specified by the Board, but the number of shares of Stock
subject to outstanding Purchase Rights shall not be adjusted. All Purchase
Rights which are neither assumed by the Acquiring Corporation in connection with
the Change in Control nor exercised as of the date of the Change in Control
shall terminate and cease to be outstanding effective as of the date of the
Change in Control.
<PAGE>

     15.  Nontransferability of Purchase Rights.
          -------------------------------------

          Neither payroll deductions credited to a Participant's Plan account
nor a Participant's Purchase Right may be assigned, transferred, pledged or
otherwise disposed of in any manner other than as provided by the Plan or by
will or the laws of descent and distribution. (A beneficiary designation
pursuant to Section 20 shall not be treated as a disposition for this purpose.)
Any such attempted assignment, transfer, pledge or other disposition shall be
without effect, except that the Company may treat such act as an election to
withdraw from the Plan as provided in Section 12.1. A Purchase Right shall be
exercisable during the lifetime of the Participant only by the Participant.

     16.  Compliance with Securities Law.
          ------------------------------

          The issuance of shares under the Plan shall be subject to compliance
with all applicable requirements of federal, state and foreign law with respect
to such securities. A Purchase Right may not be exercised if the issuance of
shares upon such exercise would constitute a violation of any applicable
federal, state or foreign securities laws or other law or regulations or the
requirements of any securities exchange or market system upon which the Stock
may then be listed. In addition, no Purchase Right may be exercised unless (a) a
registration statement under the Securities Act of 1933, as amended, shall at
the time of exercise of the Purchase Right be in effect with respect to the
shares issuable upon exercise of the Purchase Right, or (b) in the opinion of
legal counsel to the Company, the shares issuable upon exercise of the Purchase
Right may be issued in accordance with the terms of an applicable exemption from
the registration requirements of said Act. The inability of the Company to
obtain from any regulatory body having jurisdiction the authority, if any,
deemed by the Company's legal counsel to be necessary to the lawful issuance and
sale of any shares under the Plan shall relieve the Company of any liability in
respect of the failure to issue or sell such shares as to which such requisite
authority shall not have been obtained. As a condition to the exercise of a
Purchase Right, the Company may require the Participant to satisfy any
qualifications that may be necessary or appropriate, to evidence compliance with
any applicable law or regulation, and to make any representation or warranty
with respect thereto as may be requested by the Company.

     17.  Rights as a Stockholder and Employee.
          ------------------------------------

          A Participant shall have no rights as a stockholder by virtue of the
Participant's participation in the Plan until the date of the issuance of a
certificate for the shares purchased pursuant to the exercise of the
Participant's Purchase Right (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company). No
adjustment shall be made for dividends, distributions or other rights for which
the record date is prior to the date such certificate is issued, except as
provided in Section 4.2. Nothing herein shall confer upon a Participant any
right to continue in the employ of the Participating Company Group or interfere
in any way with any right of the Participating Company Group to terminate the
Participant's employment at any time.
<PAGE>

     18.  Legends.
          -------

          The Company may at any time place legends or other identifying symbols
referencing any applicable federal, state or foreign securities law restrictions
or any provision convenient in the administration of the Plan on some or all of
the certificates representing shares of Stock issued under the Plan. The
Participant shall, at the request of the Company, promptly present to the
Company any and all certificates representing shares acquired pursuant to a
Purchase Right in the possession of the Participant in order to carry out the
provisions of this Section. Unless otherwise specified by the Company, legends
placed on such certificates may include but shall not be limited to the
following:

          "THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE
CORPORATION TO THE REGISTERED HOLDER UPON THE PURCHASE OF SHARES UNDER AN
EMPLOYEE STOCK PURCHASE PLAN AS DEFINED IN SECTION 423 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED. THE TRANSFER AGENT FOR THE SHARES EVIDENCED HEREBY
SHALL NOTIFY THE CORPORATION IMMEDIATELY OF ANY TRANSFER OF THE SHARES BY THE
REGISTERED HOLDER HEREOF. THE REGISTERED HOLDER SHALL HOLD ALL SHARES PURCHASED
UNDER THE PLAN IN THE REGISTERED HOLDER'S NAME (AND NOT IN THE NAME OF ANY
NOMINEE)."

     19.  Notification of Disposition of Shares.
          -------------------------------------

          The Company may require the Participant to give the Company prompt
notice of any disposition of shares acquired by exercise of a Purchase Right.
The Company may require that until such time as a Participant disposes of shares
acquired upon exercise of a Purchase Right, the Participant shall hold all such
shares in the Participant's name (or, if elected by the Participant, in the name
of the Participant and his or her spouse but not in the name of any nominee)
until the later of two years after the date of grant of such Purchase Right or
one year after the date of exercise of such Purchase Right. The Company may
direct that the certificates evidencing shares acquired by exercise of a
Purchase Right refer to such requirement to give prompt notice of disposition.

     20.  Designation of Beneficiary.
          --------------------------

          20.1   Designation Procedure. A Participant may file a written
designation of a beneficiary who is to receive (a) shares and cash, if any, from
the Participant's Plan account if the Participant dies subsequent to a Purchase
Date but prior to delivery to the Participant of such shares and cash or (b)
cash, if any, from the Participant's Plan account if the Participant dies prior
to the exercise of the Participant's Purchase Right. If a married Participant
designates a beneficiary other than the Participant's spouse, the effectiveness
of such designation shall be subject to the consent of the Participant's spouse.
A Participant may change his or her beneficiary designation at any time by
written notice to the Company.

          20.2   Absence of Beneficiary Designation. If a Participant dies
without an effective designation pursuant to Section 20.1 of a beneficiary who
is living at the time of the
<PAGE>

Participant's death, the Company shall deliver any shares or cash credited to
the Participant's Plan account to the Participant's legal representative.

  21.     Notices.
          -------

          All notices or other communications by a Participant to the Company
under or in connection with the Plan shall be deemed to have been duly given
when received in the form specified by the Company at the location, or by the
person, designated by the Company for the receipt thereof.

  22.     Amendment or Termination of the Plan.
          ------------------------------------

          The Board may at any time amend or terminate the Plan, except that (a)
no such amendment or termination shall affect Purchase Rights previously granted
under the Plan unless expressly provided by the Board and (b) no such amendment
or termination may adversely affect a Purchase Right previously granted under
the Plan without the consent of the Participant, except to the extent permitted
by the Plan or as may be necessary to qualify the Plan as an employee stock
purchase plan pursuant to Section 423 of the Code or to comply with any
applicable law, regulation or rule.  In addition, an amendment to the Plan must
be approved by the stockholders of the Company within twelve (12) months of the
adoption of such amendment if such amendment would authorize the sale of more
shares than are then authorized for issuance under the Plan or would change the
definition of the corporations that may be designated by the Board as
Participating Companies.
<PAGE>

                                 PLAN HISTORY
                                 ------------

___________, 2000   Board adopts Plan, effective as of the date of the initial
                    registration of Stock under Section 12 of the Exchange Act,
                    with an initial reserve of 2,000,000 shares. The Board also
                    established that the share reserve will be increased
                    cumulatively on each January 1 from January 1, 2002 through
                    January 1, 2011 by the lesser of (i) 2% of the shares of
                    common stock issued and outstanding on the immediately
                    preceding December 31, (ii) 1,000,000 shares, or (iii) such
                    lesser number of shares determined by the Board.

___________, 2000   Stockholders approve the Plan.
<PAGE>

                                EXTRICITY, INC.
                       2000 EMPLOYEE STOCK PURCHASE PLAN
                            SUBSCRIPTION AGREEMENT

NAME (Please print): ______________________________________________________
                     (Last)               (First)             (Middle)

 .    Original application for the Offering Period beginning (date):

 .    Change in payroll deduction rate effective with the pay period ending
     (date):

 .    Change of beneficiary.

I.   SUBSCRIPTION

     I elect to participate in the 2000 Employee Stock Purchase Plan (the
"Plan") of Extricity, Inc. (the "Company") and to subscribe to purchase shares
of the Company's Common Stock in accordance with this Subscription Agreement and
the Plan.

     I authorize payroll deductions of __________ percent (in whole percentages
not less than 1%, unless an election to stop deductions is being made, or more
than 20%) of my "Compensation" on each payday throughout the "Offering Period"
in accordance with the Plan.  I understand that these payroll deductions will be
accumulated for the purchase of shares of Common Stock at the applicable
purchase price determined in accordance with the Plan.  Except as otherwise
provided by the Plan, I will automatically purchase shares on each "Purchase
Date" unless I withdraw from the Offering or the Plan by giving written notice
on a form provided by the Company or unless my eligibility or employment
terminates.

     I understand that I will automatically participate in each subsequent
Offering that commences immediately after the last day of an Offering in which I
am participating until I withdraw from the Plan by giving written notice on a
form provided by the Company or my eligibility or employment terminates.

     Shares I purchase under the Plan should be issued in the name(s) set forth
below.  (Shares may be issued in the participant's name alone or together with
the participant's spouse as community property or in joint tenancy.)

     NAME(S) (please print): ______________________________________________

     .   In my name alone   .  Community Property  .  Joint Tenancy

     ADDRESS: _____________________________________________________________

     MY SOCIAL SECURITY NUMBER: ___________________________________________

     I agree to make adequate provision for the federal, state, local and
foreign tax withholding obligations, if any, which arise upon my purchase of
shares under the Plan and/or my disposition of shares.  The Company may withhold
from my compensation the amount necessary to meet such withholding obligations.

     I agree that, unless otherwise permitted by the Company, until I dispose of
shares I purchase under the Plan, I will hold such shares in the name(s) entered
above (and not in the name of any nominee) until the later of (i) two years
after the first day of the Offering Period in which I purchased the shares and
(ii) one year after the Purchase Date on which I purchased the shares.  This
restriction only applies to the name(s) in which shares are held and does not
                                                                          ---
affect my ability to dispose of Plan shares.
<PAGE>

     I agree that I will notify the General Counsel of the Company in writing
within 30 days after any sale, gift, transfer or other disposition of any kind
prior to the end of the periods referred to in the preceding paragraph (a
"Disqualifying Disposition") of any shares I purchased under the Plan.  If I do
not respond within 30 days of the date of a Disqualifying Disposition Survey
delivered to me by certified mail, the Company is authorized to treat my
nonresponse as my notice to the Company of a Disqualifying Disposition and to
compute and report to the Internal Revenue Service the ordinary income I must
recognize upon such Disqualifying Disposition.

II.  BENEFICIARY DESIGNATION

     In the event of my death, I designate the following as my beneficiary to
receive all payments and shares then due me under the Plan:

     BENEFICIARY'S NAME (please print):________________________________________
                                        (First)        (Middle)         (Last)

     RELATIONSHIP: __________________      SOC. SEC. NO.: _____________________

     ADDRESS: _________________________________________________________________

     If you are married and your beneficiary is someone other than your spouse,
then your spouse must sign and date this form as indicated below.  If you are
not married when you designate a beneficiary and you later become married, or if
you later become married to a different person, the beneficiary designation
previously made will be automatically revoked.  Payments and shares then due you
upon your death will be delivered to your legal representative unless you have
completed a new beneficiary designation and it is consented to by your then
spouse.

III. CONSENT OF SPOUSE

     I am the spouse of ______________________.  I consent to the above
designation of a beneficiary other than me of payments and shares due my spouse
under the Plan.

Date: _____________________        ___________________________________________
                                   Signature of Participant's Spouse

IV.  PARTICIPANT DECLARATION

     Any election I have made on this form revokes all prior elections with
regard to this form.

     I am familiar with the provisions of the Plan and agree to participate in
the Plan subject to all of its provisions.  I understand that the Board of
Directors of the Company reserves the right to terminate the Plan or to amend
the Plan and my right to purchase stock under the Plan to the extent provided by
the Plan.  I understand that the effectiveness of this Subscription Agreement is
dependent upon my eligibility to participate in the Plan and is subject to the
provisions of the Plan.

Date: _____________________        ___________________________________________
                                   Signature of Participant
<PAGE>

                                EXTRICITY, INC.
                       2000 EMPLOYEE STOCK PURCHASE PLAN
                             NOTICE OF WITHDRAWAL

NAME (Please print): ________________________________________________________
                     (Last)               (First)                (Middle)

 .    Withdrawal from Plan in full.

 .    Partial withdrawal of payroll deductions from Plan account.

I.   WITHDRAWAL IN FULL

     I elect to withdraw from the Extricity, Inc. 2000 Employee Stock Purchase
Plan (the "Plan") and the Offering which began on (date) ____________________
and in which I am participating (the "Current Offering").

     Elect either A or B below:

 .    A.   Immediate Termination.  I elect to terminate immediately my
          participation in the Current Offering and the Plan.   I request that
          the Company cease all further payroll deductions under the Plan
          (provided I have given sufficient notice before the next payday).  My
          payroll deductions not previously used to purchase shares should not
                                                                           ---
          be used to purchase shares in the Current Offering.  Instead, I
          request that all such amounts be paid to me as soon as practicable.  I
          understand that this election immediately terminates my interest in
          the Current Offering and in the Plan.

 .    B.   Termination After Next Purchase.  I elect to terminate my
          participation in the Plan following my purchase of shares on the next
          Purchase Date of the Current Offering.  I request that the Company
          cease all further payroll deductions under the Plan (provided I have
          given sufficient notice before the next payday).  All payroll
          deductions credited to my Plan account should be used to purchase
          shares on the next Purchase Date of the Current Offering to the extent
          permitted by the Plan.  I understand that this election will terminate
          my interest in the Plan immediately following such purchase.  I
          request that any cash balance remaining in my Plan account after my
          purchase of shares be paid to me as soon as practicable.

     I understand that I am terminating my interest in the Plan and that no
further payroll deductions will be made (provided I have given sufficient notice
before the next payday), unless I elect to become a participant in another
Offering by filing a new Subscription Agreement with the Company.  I understand
that I will receive no interest on the amounts paid to me from my Plan account,
and that I may not apply such amounts to any other Offering under the Plan or
any other employee stock purchase plan of the Company.

II.  PARTIAL WITHDRAWAL OF PAYROLL DEDUCTIONS

     Amount of withdrawal requested: $ _____________________________

     I request that the above amount not previously used to purchase shares
under the Plan be withdrawn from my Plan account and paid to me as soon as
practicable.  If the amount requested constitutes the entire balance of my Plan
account, I understand that I will be treated as having elected to withdraw in
full from the Plan in accordance with alternative A above.  I understand that I
will receive no interest on the amounts paid to me from my Plan account and that
I may not apply such amounts to any other Offering under the Plan or any other
employee stock purchase plan of the Company.

Date: ______________________________  Signature: ____________________________

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