Document:

<PAGE>   1
                                                                   Exhibit 10.04

                              TALARIAN CORPORATION

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                            As Adopted May 12, 2000

      1. ESTABLISHMENT OF PLAN. Talarian Corporation. (the "COMPANY") proposes
to grant options for purchase of the Company's Common Stock to eligible
employees of the Company and its Participating Subsidiaries (as hereinafter
defined) pursuant to this Employee Stock Purchase Plan (this "Plan"). For
purposes of this Plan, "PARENT CORPORATION" and "SUBSIDIARY" shall have the same
meanings as "parent corporation" and "subsidiary corporation" in Sections 424(e)
and 424(f), respectively, of the Internal Revenue Code of 1986, as amended (the
"CODE"). "PARTICIPATING SUBSIDIARIES" are Parent Corporations or Subsidiaries
that the Board of Directors of the Company (the "BOARD") designates from time to
time as corporations that shall participate in this Plan. The Company intends
this Plan to qualify as an "employee stock purchase plan" under Section 423 of
the Code (including any amendments to or replacements of such Section), and this
Plan shall be so construed. Any term not expressly defined in this Plan but
defined for purposes of Section 423 of the Code shall have the same definition
herein. A total of 300,000 shares of the Company's Common Stock is reserved for
issuance under this Plan. In addition, on each January 1, the aggregate number
of shares of the Company's Common Stock reserved for issuance under the Plan
shall be increased automatically by a number of shares equal to 1% of the total
number of outstanding shares of the Company Common Stock on the immediately
preceding December 31; provided, that the Board or the Committee may in its sole
discretion reduce the amount of the increase in any particular year; and,
provided further, that the aggregate number of shares issued over the term of
this Plan shall not exceed 3,000,000 shares. Such number shall be subject to
adjustments effected in accordance with Section 14 of this Plan.

      2. PURPOSE. The purpose of this Plan is to provide eligible employees of
the Company and Participating Subsidiaries with a convenient means of acquiring
an equity interest in the Company through payroll deductions, to enhance such
employees' sense of participation in the affairs of the Company and
Participating Subsidiaries, and to provide an incentive for continued
employment.

      3. ADMINISTRATION. This Plan shall be administered by the Compensation
Committee of the Board (the "COMMITTEE"). Subject to the provisions of this Plan
and the limitations of Section 423 of the Code or any successor provision in the
Code, all questions of interpretation or application of this Plan shall be
determined by the Committee and its decisions shall be final and binding upon
all participants. Members of the Committee shall receive no compensation for
their services in connection with the administration of this Plan, other than
standard fees as established from time to time by the Board for services
rendered by Board members serving on Board committees. All expenses incurred in
connection with the administration of this Plan shall be paid by the Company.

      4. ELIGIBILITY. Any employee of the Company or the Participating
Subsidiaries is eligible to participate in an Offering Period (as hereinafter
defined) under this Plan except the following:

            (a) employees who are not employed by the Company or a Participating
Subsidiary prior to the beginning of such Offering Period or prior to such other
time period as specified by the Committee, except that employees who are
employed on the Effective Date of the Registration Statement filed by the
Company with the Securities and Exchange Commission ("SEC") under the Securities
Act of 1933, as amended (the "SECURITIES ACT") registering the initial public
offering of the Company's Common Stock shall be eligible to participate in the
first Offering Period under the Plan;

            (b) employees who are customarily employed for twenty (20) hours or
less per week;

            (c) employees who are customarily employed for five (5) months or
less in a calendar year;

            (d) employees who, together with any other person whose stock would
be attributed to such employee pursuant to Section 424(d) of the Code, own stock
or hold options to purchase stock possessing five
<PAGE>   2
                                                           Talarian Corporation
                                              2000 Employee Stock Purchase Plan

percent (5%) or more of the total combined voting power or value of all classes
of stock of the Company or any of its Participating Subsidiaries or who, as a
result of being granted an option under this Plan with respect to such Offering
Period, would own stock or hold options to purchase stock possessing five
percent (5%) or more of the total combined voting power or value of all classes
of stock of the Company or any of its Participating Subsidiaries; and

            (e) individuals who provide services to the Company or any of its
Participating Subsidiaries as independent contractors who are reclassified as
common law employees for any reason except for federal income and employment tax
purposes.

      5. OFFERING DATES. The offering periods of this Plan (each, an "OFFERING
PERIOD") shall be of twenty-four (24) months duration commencing on February 1
and August 1 of each year and ending on January 31 and July 31 of each year;
provided, however, that notwithstanding the foregoing, the first such Offering
Period shall commence on the first business day on which price quotations for
the Company's Common Stock are available on the Nasdaq National Market (the
"FIRST OFFERING DATE") and shall end on July 31, 2002, and the second Offering
Period shall commence on February 1, 2001 and shall end on January 31, 2003.
Except for the first Offering Period, each Offering Period shall consist of four
(4) six month purchase periods (individually, a "PURCHASE PERIOD") during which
payroll deductions of the participants are accumulated under this Plan. The
first Offering Period shall consist of no more than five and no fewer than three
Purchase Periods, any of which may be greater or less than six months as
determined by the Committee. The first business day of each Offering Period is
referred to as the "OFFERING DATE". The last business day of each Purchase
Period is referred to as the "PURCHASE DATE". The Committee shall have the power
to change the Offering Dates, the Purchase Dates and the duration of Offering
Periods or Purchase Periods without stockholder approval if such change is
announced prior to the relevant Offering Period, or prior to such other time
period as specified by the Committee.

      6. PARTICIPATION IN THIS PLAN. Eligible employees may become participants
in an Offering Period under this Plan on the first Offering Date after
satisfying the eligibility requirements by delivering a subscription agreement
to the Company prior to such Offering Date, or such other time period as
specified by the Committee. Notwithstanding the foregoing, the Committee may set
a later time for filing the subscription agreement authorizing payroll
deductions for all eligible employees with respect to a given Offering Period.
An eligible employee who does not deliver a subscription agreement to the
Company by such date after becoming eligible to participate in such Offering
Period shall not participate in that Offering Period or any subsequent Offering
Period unless such employee enrolls in this Plan by filing a subscription
agreement with the Company prior to such Offering Date, or such other time
period as specified by the Committee. Once an employee becomes a participant in
an Offering Period, such employee will automatically participate in the Offering
Period commencing immediately following the last day of the prior Offering
Period unless the employee withdraws or is deemed to withdraw from this Plan or
terminates further participation in the Offering Period as set forth in Section
11 below. Such participant is not required to file any additional subscription
agreement in order to continue participation in this Plan.

      7. GRANT OF OPTION ON ENROLLMENT. Enrollment by an eligible employee in
this Plan with respect to an Offering Period will constitute the grant (as of
the Offering Date) by the Company to such employee of an option to purchase on
the Purchase Date up to that number of shares of Common Stock of the Company
determined by dividing (a) the amount accumulated in such employee's payroll
deduction account during such Purchase Period by (b) the lower of (i)
eighty-five percent (85%) of the fair market value of a share of the Company's
Common Stock on the Offering Date (but in no event less than the par value of a
share of the Company's Common Stock), or (ii) eighty-five percent (85%) of the
fair market value of a share of the Company's Common Stock on the Purchase Date
(but in no event less than the par value of a share of the Company's Common
Stock), provided, however, that the number of shares of the Company's Common
Stock subject to any option granted pursuant to this Plan shall not exceed the
lesser of (x) the maximum number of shares set by the Committee pursuant to
Section 10(c) below with respect to the applicable Purchase Date, or (y) the
maximum number of shares which may be purchased pursuant to Section 10(b) below
with respect to the applicable Purchase Date. The fair market value of a share
of the Company's Common Stock shall be determined as provided in Section 8
below.

      8. PURCHASE PRICE. The purchase price per share at which a share of Common
Stock will be sold in any Offering Period shall be eighty-five percent (85%) of
the lesser of:

                                       2
<PAGE>   3
                                                           Talarian Corporation
                                              2000 Employee Stock Purchase Plan

            (a)  The fair market value on the Offering Date; or

            (b) The fair market value on the Purchase Date.

            For purposes of this Plan, the term "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 in The Wall Street Journal; or

            (d) if none of the foregoing is applicable, by the Board in good
faith, which in the case of the First Offering Date will be the price per share
at which shares of the Company's Common Stock are initially offered for sale to
the public by the Company's underwriters in the initial public offering of the
Company's Common Stock pursuant to a registration statement filed with the SEC
under the Securities Act.

      9. PAYMENT OF PURCHASE PRICE; CHANGES IN PAYROLL DEDUCTIONS; ISSUANCE OF
SHARES.

            (a) The purchase price of the shares is accumulated by regular
payroll deductions made during each Offering Period. The deductions are made as
a percentage of the participant's compensation in one percent (1%) increments
not less than one percent (1%), nor greater than fifteen percent (15%) or such
lower limit set by the Committee. Compensation shall mean all W-2 cash
compensation, including, but not limited to, base salary, wages, commissions,
overtime, shift premiums and bonuses, plus draws against commissions, provided,
however, that for purposes of determining a participant's compensation, any
election by such participant to reduce his or her regular cash remuneration
under Sections 125 or 401(k) of the Code shall be treated as if the participant
did not make such election; provided further, that a participant's Compensation
shall be limited to a maximum of $250,000. Payroll deductions shall commence on
the first payday of the Offering Period and shall continue to the end of the
Offering Period unless sooner altered or terminated as provided in this Plan.

            (b) A participant may increase or decrease the rate of payroll
deductions during an Offering Period by filing with the Company a new
authorization for payroll deductions, in which case the new rate shall become
effective for the next payroll period commencing after the Company's receipt of
the authorization and shall continue for the remainder of the Offering Period
unless changed as described below. Such change in the rate of payroll deductions
may be made at any time during an Offering Period, but not more than one (1)
change may be made effective during any Purchase Period. A participant may
increase or decrease the rate of payroll deductions for any subsequent Offering
Period by filing with the Company a new authorization for payroll deductions
prior to the beginning of such Offering Period, or prior to such other time
period as specified by the Committee.

            (c) A participant may reduce his or her payroll deduction percentage
to zero during an Offering Period by filing with the Company a request for
cessation of payroll deductions. Such reduction shall be effective beginning
with the next payroll period after the Company's receipt of the request and no
further payroll deductions will be made for the duration of the Offering Period.
Payroll deductions credited to the participant's account prior to the effective
date of the request shall be used to purchase shares of Common Stock of the
Company in accordance with Section (e) below. A participant may not resume
making payroll deductions during the Offering Period in which he or she reduced
his or her payroll deductions to zero.

                                       3
<PAGE>   4
                                                           Talarian Corporation
                                              2000 Employee Stock Purchase Plan

            (d) All payroll deductions made for a participant are credited to
his or her account under this Plan and are deposited with the general funds of
the Company. No interest accrues on the payroll deductions. All payroll
deductions received or held by the Company may be used by the Company for any
corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions.

            (e) On each Purchase Date, so long as this Plan remains in effect
and provided that the participant has not submitted a signed and completed
withdrawal form before that date which notifies the Company that the participant
wishes to withdraw from that Offering Period under this Plan and have all
payroll deductions accumulated in the account maintained on behalf of the
participant as of that date returned to the participant, the Company shall apply
the funds then in the participant's account to the purchase of whole shares of
Common Stock reserved under the option granted to such participant with respect
to the Offering Period to the extent that such option is exercisable on the
Purchase Date. The purchase price per share shall be as specified in Section 8
of this Plan. Any cash remaining in a participant's account after such purchase
of shares shall be refunded to such participant in cash, without interest;
provided, however that any amount remaining in such participant's account on a
Purchase Date which is less than the amount necessary to purchase a full share
of Common Stock of the Company shall be carried forward, without interest, into
the next Purchase Period or Offering Period, as the case may be. In the event
that this Plan has been oversubscribed, all funds not used to purchase shares on
the Purchase Date shall be returned to the participant, without interest. No
Common Stock shall be purchased on a Purchase Date on behalf of any employee
whose participation in this Plan has terminated prior to such Purchase Date.

            (f) As promptly as practicable after the Purchase Date, the Company
shall issue shares for the participant's benefit representing the shares
purchased upon exercise of his or her option.

            (g) During a participant's lifetime, his or her option to purchase
shares hereunder is exercisable only by him or her. The participant will have no
interest or voting right in shares covered by his or her option until such
option has been exercised.

      10. LIMITATIONS ON SHARES TO BE PURCHASED.

            (a) No participant shall be entitled to purchase stock under this
Plan at a rate which, when aggregated with his or her rights to purchase stock
under all other employee stock purchase plans of the Company or any Subsidiary,
exceeds $25,000 in fair market value, determined as of the Offering Date (or
such other limit as may be imposed by the Code) for each calendar year in which
the employee participates in this Plan. The Company shall automatically suspend
the payroll deductions of any participant as necessary to enforce such limit
provided that when the Company automatically resumes such payroll deductions,
the Company must apply the rate in effect immediately prior to such suspension.

            (b) No more than two hundred percent (200%) of the number of shares
determined by using eighty-five percent (85%) of the fair market value of a
share of the Company's Common Stock on the Offering Date as the denominator may
be purchased by a participant on any single Purchase Date.

            (c) No participant shall be entitled to purchase more than the
Maximum Share Amount (as defined below) on any single Purchase Date. Prior to
the commencement of any Offering Period or prior to such time period as
specified by the Committee, the Committee may, in its sole discretion, set a
maximum number of shares which may be purchased by any employee at any single
Purchase Date (hereinafter the "MAXIMUM SHARE AMOUNT"). Until otherwise
determined by the Committee, there shall be no Maximum Share Amount. In no event
shall the Maximum Share Amount exceed the amounts permitted under Section 10(b)
above. If a new Maximum Share Amount is set, then all participants must be
notified of such Maximum Share Amount prior to the commencement of the next
Offering Period. The Maximum Share Amount shall continue to apply with respect
to all succeeding Purchase Dates and Offering Periods unless revised by the
Committee as set forth above.

            (d) If the number of shares to be purchased on a Purchase Date by
all employees participating in this Plan exceeds the number of shares then
available for issuance under this Plan, then the Company will make a pro rata
allocation of the remaining shares in as uniform a manner as shall be reasonably
practicable and as the

                                       4
<PAGE>   5
                                                           Talarian Corporation
                                              2000 Employee Stock Purchase Plan

Committee shall determine to be equitable. In such event, the Company shall give
written notice of such reduction of the number of shares to be purchased under a
participant's option to each participant affected.

            (e) Any payroll deductions accumulated in a participant's account
which are not used to purchase stock due to the limitations in this Section 10
shall be returned to the participant as soon as practicable after the end of the
applicable Purchase Period, without interest.

      11. WITHDRAWAL.

            (a) Each participant may withdraw from an Offering Period under this
Plan by signing and delivering to the Company a written notice to that effect on
a form provided for such purpose. Such withdrawal may be elected at any time
prior to the end of an Offering Period, or such other time period as specified
by the Committee.

            (b) Upon withdrawal from this Plan, the accumulated payroll
deductions shall be returned to the withdrawn participant, without interest, and
his or her interest in this Plan shall terminate. In the event a participant
voluntarily elects to withdraw from this Plan, he or she may not resume his or
her participation in this Plan during the same Offering Period, but he or she
may participate in any Offering Period under this Plan which commences on a date
subsequent to such withdrawal by filing a new authorization for payroll
deductions in the same manner as set forth in Section 6 above for initial
participation in this Plan.

            (c) If the Fair Market Value on the first day of the current
Offering Period in which a participant is enrolled is higher than the Fair
Market Value on the first day of any subsequent Offering Period, the Company
will automatically enroll such participant in the subsequent Offering Period.
Any funds accumulated in a participant's account prior to the first day of such
subsequent Offering Period will be applied to the purchase of shares on the
Purchase Date immediately prior to the first day of such subsequent Offering
Period, if any.

      12. TERMINATION OF EMPLOYMENT. Termination of a participant's employment
for any reason, including retirement, death or the failure of a participant to
remain an eligible employee of the Company or of a Participating Subsidiary,
immediately terminates his or her participation in this Plan. In such event, the
payroll deductions credited to the participant's account will be returned to him
or her or, in the case of his or her death, to his or her legal representative,
without interest. For purposes of this Section 12, an employee will not be
deemed to have terminated employment or failed to remain in the continuous
employ of the Company or of a Participating Subsidiary in the case of sick
leave, military leave, or any other leave of absence approved by the Board;
provided that such leave is for a period of not more than ninety (90) days or
reemployment upon the expiration of such leave is guaranteed by contract or
statute.

      13. RETURN OF PAYROLL DEDUCTIONS. In the event a participant's interest in
this Plan is terminated by withdrawal, termination of employment or otherwise,
or in the event this Plan is terminated by the Board, the Company shall deliver
to the participant all payroll deductions credited to such participant's
account. No interest shall accrue on the payroll deductions of a participant in
this Plan.

      14. CAPITAL CHANGES. Subject to any required action by the stockholders of
the Company, the number of shares of Common Stock covered by each option under
this Plan which has not yet been exercised and the number of shares of Common
Stock which have been authorized for issuance under this Plan but have not yet
been placed under option (collectively, the "Reserves"), as well as the price
per share of Common Stock covered by each option under this Plan which has not
yet been exercised, shall be proportionately adjusted for any increase or
decrease in the number of issued and outstanding shares of Common Stock of the
Company resulting from a stock split or the payment of a stock dividend (but
only on the Common Stock) or any other increase or decrease in the number of
issued and outstanding shares of Common Stock effected without receipt of any
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration". Such adjustment shall be made by the
Committee, whose determination shall be final, binding and conclusive. Except as
expressly provided herein, no issue by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no

                                       5
<PAGE>   6
                                                           Talarian Corporation
                                              2000 Employee Stock Purchase Plan

adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an option.

            In the event of the proposed dissolution or liquidation of the
Company, the Offering Period will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the
Committee. The Committee may, in the exercise of its sole discretion in such
instances, declare that this Plan shall terminate as of a date fixed by the
Committee and give each participant the right to purchase shares under this Plan
prior to such termination. In the event of (i) 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 stockholders of the Company or their relative stock
holdings and the options under this Plan are assumed, converted or replaced by
the successor corporation, which assumption will be binding on all
participants), (ii) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (iii) the sale of all or
substantially all of the assets of the Company or (iv) the acquisition, sale, or
transfer of more than 50% of the outstanding shares of the Company by tender
offer or similar transaction, the Plan will continue with regard to Offering
Periods that commenced prior to the closing of the proposed transaction and
shares will be purchased based on the Fair Market Value of the surviving
corporation's stock on each Purchase Date, unless otherwise provided by the
Committee consistent with pooling of interests accounting treatment.

            The Committee may, if it so determines in the exercise of its sole
discretion, also make provision for adjusting the Reserves, as well as the price
per share of Common Stock covered by each outstanding option, in the event that
the Company effects one or more reorganizations, recapitalizations, rights
offerings or other increases or reductions of shares of its outstanding Common
Stock, or in the event of the Company being consolidated with or merged into any
other corporation.

      15. NONASSIGNABILITY. Neither payroll deductions credited to a
participant's account nor any rights with regard to the exercise of an option or
to receive shares under this Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 22 below) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be void and
without effect.

      16. REPORTS. Individual accounts will be maintained for each participant
in this Plan. Each participant shall receive promptly after the end of each
Purchase Period a report of his or her account setting forth the total payroll
deductions accumulated, the number of shares purchased, the per share price
thereof and the remaining cash balance, if any, carried forward to the next
Purchase Period or Offering Period, as the case may be.

      17. NOTICE OF DISPOSITION. Each participant shall notify the Company in
writing if the participant disposes of any of the shares purchased in any
Offering Period pursuant to this Plan if such disposition occurs within two (2)
years from the Offering Date or within one (1) year from the Purchase Date on
which such shares were purchased (the "NOTICE PERIOD"). The Company may, at any
time during the Notice Period, place a legend or legends on any certificate
representing shares acquired pursuant to this Plan requesting the Company's
transfer agent to notify the Company of any transfer of the shares. The
obligation of the participant to provide such notice shall continue
notwithstanding the placement of any such legend on the certificates.

      18. NO RIGHTS TO CONTINUED EMPLOYMENT. Neither this Plan nor the grant of
any option hereunder shall confer any right on any employee to remain in the
employ of the Company or any Participating Subsidiary, or restrict the right of
the Company or any Participating Subsidiary to terminate such employee's
employment.

      19. EQUAL RIGHTS AND PRIVILEGES. All eligible employees shall have equal
rights and privileges with respect to this Plan so that this Plan qualifies as
an "employee stock purchase plan" within the meaning of Section 423 or any
successor provision of the Code and the related regulations. Any provision of
this Plan which is inconsistent with Section 423 or any successor provision of
the Code shall, without further act or amendment by the

                                       6
<PAGE>   7
                                                           Talarian Corporation
                                              2000 Employee Stock Purchase Plan

Company, the Committee or the Board, be reformed to comply with the requirements
of Section 423. This Section 19 shall take precedence over all other provisions
in this Plan.

      20. NOTICES. All notices or other communications by a participant to the
Company under or in connection with this 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.

      21. TERM; STOCKHOLDER APPROVAL. After this Plan is adopted by the Board,
this Plan will become effective on the First Offering Date (as defined above).
This Plan shall be approved by the stockholders of the Company, in any manner
permitted by applicable corporate law, within twelve (12) months before or after
the date this Plan is adopted by the Board. No purchase of shares pursuant to
this Plan shall occur prior to such stockholder approval. This Plan shall
continue until the earlier to occur of (a) termination of this Plan by the Board
(which termination may be effected by the Board at any time), (b) issuance of
all of the shares of Common Stock reserved for issuance under this Plan, or (c)
ten (10) years from the adoption of this Plan by the Board.

      22. DESIGNATION OF BENEFICIARY.

            (a) A participant may file a written designation of a beneficiary
who is to receive any shares and cash, if any, from the participant's account
under this Plan in the event of such participant's death subsequent to the end
of an Purchase Period but prior to delivery to him of such shares and cash. In
addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant's account under this Plan in the event
of such participant's death prior to a Purchase Date.

            (b) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under this
Plan who is living at the time of such participant's death, the Company shall
deliver such shares or cash to the executor or administrator of the estate of
the participant, or if no such executor or administrator has been appointed (to
the knowledge of the Company), the Company, in its discretion, may deliver such
shares or cash to the spouse or to any one or more dependents or relatives of
the participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

      23. CONDITIONS UPON ISSUANCE OF SHARES; LIMITATION ON SALE OF SHARES.
Shares shall not be issued with respect to an option unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange or automated quotation system upon which the shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

      24. APPLICABLE LAW. The Plan shall be governed by the substantive laws
(excluding the conflict of laws rules) of the State of California.

      25. AMENDMENT OR TERMINATION OF THIS PLAN. The Board may at any time
amend, terminate or extend the term of this Plan, except that any such
termination cannot affect options previously granted under this Plan, nor may
any amendment make any change in an option previously granted which would
adversely affect the right of any participant, nor may any amendment be made
without approval of the stockholders of the Company obtained in accordance with
Section 21 above within twelve (12) months of the adoption of such amendment (or
earlier if required by Section 21) if such amendment would:

            (a)  increase the number of shares that may be issued under this
Plan; or

            (b) change the designation of the employees (or class of employees)
eligible for participation in this Plan.

            Notwithstanding the foregoing, the Board may make such amendments to
the Plan as the Board determines to be advisable, if the continuation of the
Plan or any Offering Period would result in financial

                                       7
<PAGE>   8
                                                           Talarian Corporation
                                              2000 Employee Stock Purchase Plan

accounting treatment for the Plan that is different from the financial
accounting treatment in effect on the date this Plan is adopted by the Board.

                                       8
<PAGE>   9

             TALARIAN CORPORATION 2000 EMPLOYEE STOCK PURCHASE PLAN
                                 ENROLLMENT FORM

    Check One:                               Complete:

      [ ] New Enrollment or Re-enrollment    Social Security No.
                                                                ----------------

      [ ] Change                             Employee No.
                                                         -----------------------
          [ ] Change in How Shares Are to Be Held in Account
          [ ] Increase in Payroll Deduction Level [ ] this Purchase Period
              [ ] next Offering Period
          [ ] Decrease in Payroll Deduction Level [ ] this Purchase Period
              [ ] next Offering Period
          [ ] Suspension of Payroll Deductions for Open Offering Period (Attach
              Completed Suspension Form)
          [ ] Withdrawal (Attach Completed Withdrawal Form)
          [ ] Beneficiary Change

1.  Name of Participant

2.  Shares purchased under the Plan should be held in account with the Plan
    Broker in my name or in my name together with the name(s) indicated below:

    Name                                    Social Security No.
        --------------------------------                       -----------------

    Name                                    Social Security No.
        --------------------------------                       -----------------

    There may be tax consequences for naming individuals other than your spouse
    on the account in which Shares purchased under the Plan are held. If spouse
    (circle one): Joint Tenants/Community Property.

    PLEASE NOTIFY THE PLAN BROKER DIRECTLY TO TRANSFER OR SELL YOUR STOCK.

3.  Payroll Deduction Level (from 1% to 15% in whole percentages):____________
    (the percentage deduction will be made from your W-2 compensation including
    base salary, commissions, overtime, shift premiums, bonuses and draws
    against commissions)

4.  I confirm my spouse's interest (if married) in the community property
    herein, and I hereby designate the following person(s) as my
    beneficiary(ies) to receive all payments and/or stock attributable to my
    interest under the Plan:

<TABLE>
<S>                                       <C>               <C>
               NAME                       *To be divided                ADDRESS
                                           as follows:

    ------------------------------------  --------------    -------------------------------
    Last      First      M.I.                               Number       Street

    ------------------------------------                    -------------------------------
    Social Security No.   Relationship                      City          State        Zip

    ------------------------------------  --------------    -------------------------------
    Last      First      M.I.                               Number        Street

    ------------------------------------                    -------------------------------
    Social Security No.      Relationship                   City          State        Zip
</TABLE>

    * If more than one beneficiary: (1) insert "in equal shares", or (2) insert
      percentage to be paid to each beneficiary.

5.  The information provided on this Enrollment Form will remain in effect
    unless and until I complete and submit to Talarian Corporation a new
    enrollment form.

                                             TALARIAN CORPORATION OFFICE USE:

    Signature:                               Date received by the       :
              ---------------------                               ------ ------

    Name:                                    Date entered into system:
         --------------------------                                   ----------

    Date:                                    PLEASE RETURN THIS COMPLETED FORM
         --------------------------          TO TALARIAN CORPORATION

<PAGE>   10

                              TALARIAN CORPORATION

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                             SUBSCRIPTION AGREEMENT

1.  I elect to participate in the Talarian Corporation (the "COMPANY") 2000
    Employee Stock Purchase Plan (the "PLAN") and to subscribe to purchase
    shares of the Company's Common Stock (the "SHARES") in accordance with this
    Subscription Agreement and the Plan.

2.  I authorize payroll deductions from each of my paychecks in that percentage
    of my base salary, commissions, overtime, shift premiums, bonuses and draws
    against commissions as shown on my Enrollment Form, in accordance with the
    Plan.

3.  I understand that such payroll deductions shall be accumulated for the
    purchase of Shares under the Plan at the applicable purchase price
    determined in accordance with the Plan. I further understand that except as
    otherwise set forth in the Plan, Shares will be purchased for me
    automatically at the end of each Purchase Period unless I withdraw from the
    Plan or otherwise become ineligible to participate in the Plan.

4.  I understand that this Subscription Agreement will automatically re-enroll
    me in all subsequent Offering Periods unless I withdraw from the Plan or I
    become ineligible to participate in the Plan.

5.  I acknowledge that I have a copy of and am familiar with the Company's most
    recent Prospectus which describes the Plan. A copy of the complete Plan and
    the Prospectus is on file with the Company. (In the case of the initial Plan
    Purchase Period, the Prospectus will be on file on the first day of the
    Offering Period.)

6.  I understand that Shares purchased for me under the Plan will be held in a
    personal account with the Plan Broker unless I request otherwise.

7.  I hereby agree to be bound by the terms of the Plan. The effectiveness of
    this Subscription Agreement is dependent upon my eligibility to participate
    in the Plan.

8.  I have read and understood this Subscription Agreement.

                                             Signature:
                                                       -------------------------

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

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

PLEASE RETURN THIS COMPLETED FORM TO THE COMPANY.

<PAGE>   11

                              TALARIAN CORPORATION

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF SUSPENSION

I, ________________________, the undersigned participant in the Offering Period
of the Talarian Corporation 2000 Employee Stock Purchase Plan (the "PLAN") which
began on _______________, hereby notify Talarian Corporation (the "COMPANY")
that I wish to suspend my payroll deductions to the Plan for the remainder of
the Offering Period. I understand and agree that my request will be effective
beginning with the next payroll period after the Company receives this Notice of
Suspension. I understand and agree that payroll deductions credited to my
account prior to the date this Notice of Suspension is effective will be used to
purchase shares on the next Purchase Date. I further understand that no
additional payroll deductions will be made for the purchase of shares in the
current Offering Period, and I will be eligible to participate in succeeding
Offering Periods only by timely delivering to the Company a new Subscription
Agreement and Enrollment Form.

Name and address of Participant (please print):

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

Street Address or P.O. Box:
                           -----------------------------------------------------

City, State ZIP:
                ----------------------------------------------------------------

-----------------------------------          -----------------------------------
Signature                                    Date

PLEASE RETURN THIS FORM TO THE COMPANY.

<PAGE>   12

                              TALARIAN CORPORATION

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

I, ________________________, the undersigned participant in the Offering Period
of the Talarian Corporation 2000 Employee Stock Purchase Plan (the "PLAN") which
began on _______________, hereby notify Talarian Corporation (the "COMPANY")
that I wish to withdraw from the Offering Period. I direct the Company to pay to
me as promptly as practicable all payroll deductions credited to my account with
respect to such Offering Period. I understand and agree that my participation in
the Plan will terminate and no shares will be purchased for me at the end of the
Purchase Period so long as I submit this Notice of Withdrawal to the Company
within a reasonable time period prior to the end of the Purchase Period, or such
other time period as specified by the Company. I understand and agree that if I
do not submit this Notice of Withdrawal to the Company within a reasonable time
period for the Company to withdraw my account prior to the end of the Purchase
Period or within such time period as specified by the Company, shares will be
purchased for me at the end of the Purchase Period, and my participation in the
Plan will end at the beginning of the next Purchase Period or Offering Period,
as the case may be. I further understand that no additional payroll deductions
will be made for the purchase of shares in the current Offering Period, and I
shall be eligible to participate in succeeding Offering Periods only by timely
delivering to the Company a new Subscription Agreement and Enrollment Form.

Name and address of Participant (please print):

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

Street Address or P.O. Box:
                           -----------------------------------------------------

City, State ZIP:
                ----------------------------------------------------------------

-----------------------------------          -----------------------------------
Signature                                    Date

PLEASE RETURN THIS FORM TO THE COMPANY.<PAGE>   1
                                                                   Exhibit 10.05

                              TALARIAN CORPORATION

                           2000 EQUITY INCENTIVE PLAN

                            As Adopted May 12, 2000

      1. PURPOSE. The purpose of this Plan is to provide incentives to attract,
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, Restricted Stock and Stock Bonuses. Capitalized terms
not defined in the text are defined in Section 23.

      2. SHARES SUBJECT TO THE PLAN.

            2.1 Number of Shares Available. Subject to Sections 2.2 and 18, the
total number of Shares reserved and available for grant and issuance pursuant to
this Plan will be 3,000,000 Shares plus Shares that are subject to: (a) issuance
upon exercise of an Option but cease to be subject to such Option for any reason
other than exercise of such Option; (b) an Award granted hereunder but are
forfeited or are repurchased by the Company at the original issue price; and (c)
an Award that otherwise terminates without Shares being issued. In addition, any
authorized shares not issued or subject to outstanding grants under the
Company's 1998 Equity Incentive Plan and 1991 Stock Option Plan (the "PRIOR
PLANS") on the Effective Date (as defined below) and any shares issued under the
Prior Plans that are forfeited or repurchased by the Company at their original
purchase price or that are issuable upon exercise of options granted pursuant to
the Prior Plans that expire or become unexercisable for any reason without
having been exercised in full, will no longer be available for grant and
issuance under the Prior Plans, but will be available for grant and issuance
under this Plan. In addition, on each January 1, the aggregate number of Shares
reserved and available for grant and issuance pursuant to this Plan will be
increased automatically by a number of Shares equal to 5% of the total
outstanding shares of the Company as of the immediately preceding December 31;
provided, that the Board or the Committee may, in its sole discretion, reduce
the amount of the increase in any particular year; and provided further, that no
more than 30,000,000 shares shall be issued as ISOs (as defined in Section 5
below). At all times the Company shall reserve and keep available a sufficient
number of Shares as shall be required to satisfy the requirements of all
outstanding Options granted under this Plan and all other outstanding but
unvested Awards granted under this Plan.

            2.2 Adjustment of Shares. In the event that the number of
outstanding 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
number of Shares that may be granted pursuant to Sections 3 and 9 below, (c) the
Exercise Prices of and number of Shares subject to outstanding Options, and (d)
the number of Shares subject to other outstanding Awards will be proportionately
adjusted, subject to any required action by the Board or the stockholders of the
Company and compliance with applicable securities laws; provided, however, that
fractions of a Share will not be issued but will either be replaced by a cash
payment equal to the 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 employees (including officers and directors who are also employees) of the
Company or of a Parent or Subsidiary of the Company. All other Awards may be
granted to employees, officers, directors, consultants, independent contractors
and advisors of the Company or any Parent or Subsidiary of the Company; provided
such consultants, contractors and advisors render bona fide services not in
connection with the offer and sale of securities in a capital-raising
transaction. No person will be eligible to receive more than 1,000,000 Shares in
any calendar year under this Plan pursuant to the grant of Awards hereunder,
other than new employees of the Company or of a Parent or Subsidiary of the
Company (including new employees who are also officers and directors of the
Company or any Parent or Subsidiary of the Company), who are eligible to receive
up to a maximum of 2,000,000 Shares in the calendar year in which they commence
their employment. A person may be granted more than one Award under this Plan.
<PAGE>   2
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

      4. ADMINISTRATION.

            4.1 Committee Authority. This Plan will be administered by the
Committee or by the Board acting as the Committee. Except for automatic grants
to Outside Directors pursuant to Section 9 hereof, and 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. Except
for automatic grants to Outside Directors pursuant to Section 9 hereof, the
Committee will have the authority to:

            (a)   construe and interpret this Plan, any Award Agreement and any
                  other agreement or document executed pursuant to this Plan;

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

            (c)   select persons to receive Awards;

            (d)   determine the form and terms of Awards;

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

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

            (g)   grant waivers of Plan or Award conditions;

            (h)   determine the vesting, exercisability and payment of Awards;

            (i)   correct any defect, supply any omission or reconcile any
                  inconsistency in this Plan, any Award or any Award Agreement;

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

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

            4.2 Committee Discretion. Except for automatic grants to Outside
Directors pursuant to Section 9 hereof, any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or Award, at any later time, and such determination will be final and binding on
the Company and on all persons having an interest in any Award under this Plan.
The Committee may delegate to one or more officers of the Company the authority
to grant an Award under this Plan to Participants who are not Insiders of the
Company.

      5. OPTIONS. The Committee may grant Options to eligible persons and will
determine whether such Options will be Incentive Stock Options within the
meaning of the Code ("ISO") 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 Award Agreement which will expressly identify the Option as
an ISO or an NQSO ("STOCK OPTION AGREEMENT"), and, except as otherwise required
by the terms of Section 9 hereof, 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.

                                       2
<PAGE>   3
                                                          Talarian Corporation
                                                    2000 Equity Incentive 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 within the times or
upon the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be
exercisable after the expiration of ten (10) years from the date the Option is
granted; and provided further that 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 STOCKHOLDER") 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 the Committee when the Option is granted and may be not 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 be not 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 Stockholder will not be less than 110% of the Fair
Market Value of the Shares on the date of grant. Payment for the Shares
purchased may be made in accordance with Section 8 of this Plan.

            5.5 Method of Exercise. Options may be exercised only by delivery to
the 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 for the number of Shares being
purchased.

            5.6 Termination. Notwithstanding the exercise periods set forth in
the Stock Option Agreement, exercise of an 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 shorter or longer time period not exceeding five (5)
                  years 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 for Cause or
                  because of Participant's 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 shorter or longer time period not exceeding five
                  (5) years as may be determined by the Committee, with any
                  such 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, or (b)
                  twelve (12) months after the Termination Date when the
                  Termination is for Participant's death or Disability,
                  deemed to be an NQSO), but in any event no later than the
                  expiration date of the Options.

                                       3
<PAGE>   4
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

            (c)   If the Participant is Terminated for Cause, 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 shorter or longer time
                  period not exceeding five (5) years 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.

            5.7 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any 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 ISO. The aggregate Fair Market Value (determined
as of the date of grant) of Shares with respect to which ISO 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, 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 ISO 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 ISO 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 of
this Plan to provide for a different limit on the Fair Market Value of Shares
permitted to be subject to ISO, 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 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
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 ISO 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. RESTRICTED STOCK. A Restricted Stock Award is an offer by the Company
to sell to an eligible person Shares that are subject to restrictions. The
Committee will determine to whom an offer will be made, the number of Shares the
person may purchase, the price to be paid (the "PURCHASE PRICE"), the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

            6.1 Form of Restricted Stock Award. All purchases under a Restricted
Stock Award made pursuant to this Plan will be evidenced by an Award Agreement
("RESTRICTED STOCK PURCHASE AGREEMENT") that will be in such form (which need
not be the same for each Participant) as the Committee will from time to time
approve, and will comply with and be subject to the terms and conditions of this
Plan. The offer of Restricted Stock will be accepted by the Participant's
execution and delivery of the Restricted Stock Purchase Agreement and full
payment for the Shares to the Company within thirty (30) days from the date the
Restricted Stock Purchase Agreement is delivered to the person. If such person
does not execute and deliver the Restricted Stock Purchase Agreement along with
full payment for the Shares to the Company within thirty (30) days, then the
offer will terminate, unless otherwise determined by the Committee.

                                       4
<PAGE>   5
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

            6.2 Purchase Price. The Purchase Price of Shares sold pursuant to a
Restricted Stock Award will be determined by the Committee on the date the
Restricted Stock Award is granted, except in the case of a sale to a Ten Percent
Stockholder, in which case the Purchase Price will be 100% of the Fair Market
Value. Payment of the Purchase Price may be made in accordance with Section 8 of
this Plan.

            6.3 Terms of Restricted Stock Awards. Restricted Stock Awards shall
be subject to such restrictions as the Committee may impose. These restrictions
may be based upon completion of a specified number of years of service with the
Company or upon completion of the performance goals as set out in advance in the
Participant's individual Restricted Stock Purchase Agreement. Restricted Stock
Awards may vary from Participant to Participant and between groups of
Participants. Prior to the grant of a Restricted Stock Award, the Committee
shall: (a) determine the nature, length and starting date of any Performance
Period for the Restricted Stock Award; (b) select from among the Performance
Factors to be used to measure performance goals, if any; and (c) determine the
number of Shares that may be awarded to the Participant. Prior to the payment of
any Restricted Stock Award, the Committee shall determine the extent to which
such Restricted Stock Award has been earned. Performance Periods may overlap and
Participants may participate simultaneously with respect to Restricted Stock
Awards that are subject to different Performance Periods and having different
performance goals and other criteria.

            6.4 Termination During Performance Period. If a Participant is
Terminated during a Performance Period for any reason, then such Participant
will be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Restricted Stock Award only to the extent earned as of the date of
Termination in accordance with the Restricted Stock Purchase Agreement, unless
the Committee will determine otherwise.

      7. STOCK BONUSES.

            7.1 Awards of Stock Bonuses. A Stock Bonus is an award of Shares
(which may consist of Restricted Stock) for services rendered to the Company or
any Parent or Subsidiary of the Company. A Stock Bonus may be awarded for past
services already rendered to the Company, or any Parent or Subsidiary of the
Company pursuant to an Award Agreement (the "STOCK BONUS AGREEMENT") that will
be in such form (which need not be the same for each Participant) as the
Committee will from time to time approve, and will comply with and be subject to
the terms and conditions of this Plan. A Stock Bonus may be awarded upon
satisfaction of such performance goals as are set out in advance in the
Participant's individual Award Agreement (the "PERFORMANCE STOCK BONUS
AGREEMENT") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan. Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company, Parent or Subsidiary and/or
individual performance factors or upon such other criteria as the Committee may
determine.

            7.2 Terms of Stock Bonuses. The Committee will determine the number
of Shares to be awarded to the Participant. If the Stock Bonus is being earned
upon the satisfaction of performance goals pursuant to a Performance Stock Bonus
Agreement, then the Committee will: (a) determine the nature, length and
starting date of any Performance Period for each Stock Bonus; (b) select from
among the Performance Factors to be used to measure the performance, if any; and
(c) determine the number of Shares that may be awarded to the Participant. Prior
to the payment of any Stock Bonus, the Committee shall determine the extent to
which such Stock Bonuses have been earned. Performance Periods may overlap and
Participants may participate simultaneously with respect to Stock Bonuses that
are subject to different Performance Periods and different performance goals and
other criteria. The number of Shares may be fixed or may vary in accordance with
such performance goals and criteria as may be determined by the Committee. The
Committee may adjust the performance goals applicable to the Stock Bonuses to
take into account changes in law and accounting or tax rules and to make such
adjustments as the Committee deems necessary or appropriate to reflect the
impact of extraordinary or unusual items, events or circumstances to avoid
windfalls or hardships.

            7.3 Form of Payment. The earned portion of a Stock Bonus may be paid
currently or on a deferred basis with such interest or dividend equivalent, if
any, as the Committee may determine. Payment may be

                                       5
<PAGE>   6
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

made in the form of cash or whole Shares or a combination thereof, either in a
lump sum payment or in installments, all as the Committee will determine.

      8. PAYMENT FOR SHARE PURCHASES.

            8.1 Payment. Payment for Shares purchased pursuant to this Plan may
be 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
                  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 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;

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

            (e)   with respect only to purchases upon exercise of an Option, and
                  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 a
                        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.

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

      9. AUTOMATIC GRANTS TO OUTSIDE DIRECTORS.

            9.1 Types of Options and Shares. Options granted under this Plan and
subject to this Section 9 shall be NQSOs.

            9.2 Eligibility. Options subject to this Section 9 shall be granted
only to Outside Directors.

                                       6
<PAGE>   7
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

            9.3 Initial Grant. Each Outside Director who first becomes a member
of the Board on or after the Effective Date will automatically be granted an
Option for 20,000 Shares (an "INITIAL GRANT") on the date such Outside Director
first becomes a member of the Board. Each Outside Director who became a member
of the Board prior to the Effective Date and who did not receive a prior Option
grant will receive an Initial Grant on the Effective Date.

            9.4 Succeeding Grant. Immediately following each Annual Meeting of
stockholders, each Outside Director will automatically be granted an Option for
10,000 Shares (a "SUCCEEDING GRANT"), provided, that the Outside Director is a
member of the Board on such date and has served continuously as a member of the
Board for a period of at least ten months since the last option grant to such
Outside Director, whether an Initial Grant or a Succeeding Grant. If less than
ten months has passed, then the number of shares subject to the Succeeding Grant
will be pro-rated based on the number of days passed since the last option grant
to such director, divided by 365 days.

            9.5 Vesting and Exercisability. The date an Outside Director
receives an Initial Grant or a Succeeding Grant is referred to in this Plan as
the "START DATE" for such Option.

            (a)   Initial Grant. Each Initial Grant will vest and be exercisable
                  as to 25% of the Shares on the first one year anniversary of
                  the Start Date for such Initial Grant, and thereafter as to
                  2.08333% of the Shares at the end of each full succeeding
                  month, so long as the Outside Director continuously remains a
                  director or a consultant of the Company.

            (b)   Succeeding Grant. Each Succeeding Grant will vest and be
                  exercisable as to 25% of the Shares on the first one year
                  anniversary of the Start Date for such Succeeding Grant, and
                  thereafter as to 2.08333% of the Shares at the end of each
                  full succeeding month, so long as the Outside Director
                  continuously remains a director or a consultant of the
                  Company.

Notwithstanding any provision to the contrary, in the event of (i) a merger,
consolidation or similar transaction in which the Company's stockholders prior
to such transaction own less than a majority of the Company's (or any surviving
company's) voting securities after such transaction, on account of Company
securities held by them prior to such transaction, (ii) a sale of all or
substantially all of the Company's assets, or (iii) a liquidation of the Company
(together, a "Change in Control"), the vesting of all options granted to Outside
Directors pursuant to this Section 9 will accelerate and such options will
become exercisable in full prior to the consummation of such event at such times
and on such conditions as the Committee determines, and must be exercised, if at
all, within three (3) months of the consummation of said event or such shorter
time as prescribed by the Committee. Any options not exercised within such
period shall expire.

            9.6 Exercise Price. The exercise price of an Option pursuant to an
Initial Grant and Succeeding Grant shall be the Fair Market Value of the Shares,
at the time that the Option is granted.

      10. WITHHOLDING TAXES.

            10.1 Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards 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 Awards are to be made in cash, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax
requirements.

            10.2 Stock Withholding. When, under applicable tax laws, a
Participant incurs tax liability in connection with the exercise or vesting of
any Award 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. 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.

                                       7
<PAGE>   8
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

      11. TRANSFERABILITY.

            11.1 Except as otherwise provided in this Section 11, Awards 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 or as determined by the Committee and set forth in the Award
Agreement with respect to Awards that are not ISOs.

            11.2 All Awards other than NQSO's. All Awards other than NQSO's
shall be exercisable: (i) during the Participant's lifetime, only by (A) the
Participant, or (B) the Participant's guardian or legal representative; and (ii)
after Participant's death, by the legal representative of the Participant's
heirs or legatees.

            11.3 NQSOs. Unless otherwise restricted by the Committee, an NQSO
shall be exercisable: (i) during the Participant's lifetime only by (A) the
Participant, (B) the Participant's guardian or legal representative, (C) a
Family Member of the Participant who has acquired the NQSO by "permitted
transfer;" and (ii) after Participant's death, by the legal representative of
the Participant's heirs or legatees. "Permitted transfer" means, as authorized
by this Plan and the Committee in an NQSO, any transfer effected by the
Participant during the Participant's lifetime of an interest in such NQSO but
only such transfers which are by gift or domestic relations order. A permitted
transfer does not include any transfer for value and neither of the following
are transfers for value: (a) a transfer of under a domestic relations order in
settlement of marital property rights or (b) a transfer to an entity in which
more than fifty percent of the voting interests are owned by Family Members or
the Participant in exchange for an interest in that entity.

      12. PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES..

            12.1 Voting and Dividends. No Participant will have any of the
rights of a stockholder 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 stockholder and have all the rights of a stockholder 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 if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided, further, that the Participant will have no right to
retain such stock dividends or stock distributions with respect to Shares that
are repurchased at the Participant's Purchase Price or Exercise Price pursuant
to Section 12.

            12.2 Financial Statements. The Company will provide financial
statements to each Participant prior to such Participant's purchase of Shares
under this Plan, and to each Participant annually during the period such
Participant has Awards outstanding; provided, however, the Company will not be
required to provide such financial statements to Participants whose services in
connection with the Company assure them access to equivalent information.

            12.3 Restrictions on Shares. At the discretion of the Committee, the
Company may reserve to itself and/or its assignee(s) in the Award Agreement a
right to repurchase a portion of or all Unvested Shares held by a Participant
following such Participant's Termination at any time within ninety (90) days
after the later of Participant's Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or cancellation of purchase money
indebtedness, at the Participant's Exercise Price or Purchase Price, as the case
may be.

      13. 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.

                                       8
<PAGE>   9
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

      14. 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 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.

      15. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from
time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award 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.

      16. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be
effective unless such Award 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 Award 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) 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 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.

      17. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award 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.

      18. CORPORATE TRANSACTIONS.

            18.1 Assumption or Replacement of Awards by Successor. Except for
automatic grants to Outside Directors pursuant to Section 9 hereof, in the event
of (i) a dissolution or liquidation of the Company, (ii) 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 stockholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (iii) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (iv) the sale of substantially
all of the assets of the Company, or (v) the acquisition, sale, or transfer of
more than 50% of the outstanding shares of the

                                       9
<PAGE>   10
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

Company by tender offer or similar transaction (each, a "CORPORATE
TRANSACTION"), any or all outstanding Awards 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 or acquiring corporation may substitute equivalent Awards or provide
substantially similar consideration to Participants as was provided to
shareholders (after taking into account the existing provisions of the Awards).
The successor corporation may also issue, in place of outstanding unvested
Shares of the Company held by the Participants, substantially similar shares or
other property subject to repurchase restrictions no less favorable to the
Participant. In the event such successor corporation (if any) refuses to assume
or substitute Awards, as provided above, pursuant to a Corporate Transaction
described in this Subsection 18.1, such Awards will expire on such Corporate
Transaction at such time and on such conditions as the Committee will determine.
Notwithstanding anything in this Plan to the contrary, the Committee may, in its
sole discretion, provide that the vesting of any or all Awards granted pursuant
to this Plan will accelerate upon a Corporate Transaction described in this
Section 18. If the Committee exercises such discretion with respect to Options,
such Options will become exercisable in full prior to the consummation of such
event at such time and on such conditions as the Committee determines, and if
such Options are not exercised prior to the consummation of the Corporate
Transaction, they shall terminate at such time as determined by the Committee.
Additionally, and notwithstanding the foregoing, if there is (i) a Corporate
Transaction in which the Awards are not maintained in effect, assumed or
substituted, or (ii) a Participant is terminated within one year of the date of
a Corporate Transaction that qualifies as a Change in Control (as defined in
Section 9.5), for any reason except for death, Disability or Cause, then the
vesting of the outstanding Awards for such participant will accelerate as to an
additional 25% of the shares that are unvested as of the date of such Corporate
Transaction (in the case of (i) above), or the date of such Termination (in the
case of (ii) above), or such reasonable terms and conditions as the Committee
shall prescribe.

            18.2 Other Treatment of Awards. Subject to any greater rights
granted to Participants under the foregoing provisions of this Section 18, in
the event of the occurrence of any Corporate Transaction described in Section
18.1, any outstanding Awards will be treated as provided in the applicable
agreement or plan of merger, consolidation, dissolution, liquidation, or sale of
assets.

            18.3 Assumption of Awards by the Company. The Company, from time to
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either; (a) granting an Award under this Plan in substitution of
such other company's award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award 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.

      19. ADOPTION AND STOCKHOLDER APPROVAL. This Plan will become effective on
the date on which the registration statement filed by the Company with the SEC
under the Securities Act registering the initial public offering of the
Company's Common Stock is declared effective by the SEC (the "EFFECTIVE DATE").
This Plan shall be approved by the stockholders of the Company (excluding Shares
issued pursuant to this Plan), consistent with applicable laws, within twelve
(12) months before or after the date this Plan is adopted by the Board. Upon the
Effective Date, the Committee may grant Awards pursuant to this Plan; provided,
however, that: (a) no Option may be exercised prior to initial stockholder
approval of this Plan; (b) no Option granted pursuant to an increase in the
number of Shares subject to this Plan approved by the Board will be exercised
prior to the time such increase has been approved by the stockholders of the
Company; (c) in the event that initial stockholder approval is not obtained
within the time period provided herein, all Awards granted hereunder shall be
cancelled, any Shares issued pursuant to any Awards shall be cancelled and any
purchase of Shares issued hereunder shall be rescinded; and (d) in the event
that stockholder approval of such increase is not obtained within the time
period provided herein, all Awards granted pursuant to such increase will be
cancelled, any Shares issued pursuant to any Award granted pursuant to such
increase will be cancelled, and any purchase of Shares pursuant to such increase
will be rescinded.

                                       10
<PAGE>   11
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

      20. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided
herein, this Plan will terminate ten (10) years from the date this Plan is
adopted by the Board or, if earlier, the date of stockholder approval. This Plan
and all agreements thereunder shall be governed by and construed in accordance
with the laws of the State of California.

      21. 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 Award Agreement or instrument to be executed pursuant to this Plan;
provided, however, that the Board will not, without the approval of the
stockholders of the Company, amend this Plan in any manner that requires such
stockholder approval.

      22. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the
Board, the submission of this Plan to the stockholders 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 and bonuses otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific
cases.

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

            "AWARD" means any award under this Plan, including any Option,
Restricted Stock or Stock Bonus.

            "AWARD AGREEMENT" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award.

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

            "CAUSE" means the commission of an act of theft, embezzlement,
fraud, dishonesty or a breach of fiduciary duty to the Company or a Parent or
Subsidiary of the Company.

            "CHANGE IN CONTROL" has the meaning provided in Section 9.5.

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

            "COMMITTEE" means the Compensation Committee of the Board.

            "COMPANY" means Talarian Corporation 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

                                       11
<PAGE>   12
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

                  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
                  in The Wall Street Journal;

            (d)   in the case of an Award made on the Effective Date, the price
                  per share at which shares of the Company's Common Stock are
                  initially offered for sale to the public by the Company's
                  underwriters in the initial public offering of the Company's
                  Common Stock pursuant to a registration statement filed with
                  the SEC under the Securities Act; or

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

            "FAMILY MEMBER" includes any of the following:

            (a)   child, stepchild, grandchild, parent, stepparent, grandparent,
                  spouse, former spouse, sibling, niece, nephew, mother-in-law,
                  father-in-law, son-in-law, daughter-in-law, brother-in-law, or
                  sister-in-law of the Participant, including any such person
                  with such relationship to the Participant by adoption;

            (b)   any person (other than a tenant or employee) sharing the
                  Participant's household;

            (c)   a trust in which the persons in (a) and (b) have more than
                  fifty percent of the beneficial interest;

            (d)   a foundation in which the persons in (a) and (b) or the
                  Participant control the management of assets; or

            (e)   any other entity in which the persons in (a) and (b) or the
                  Participant own more than fifty percent of the voting
                  interest.

            "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.

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

            "OUTSIDE DIRECTOR" means a member of the Board who is not an
employee of the Company or any Parent or Subsidiary.

            "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 Award under this
Plan.

            "PERFORMANCE FACTORS" means the factors selected by the Committee
from among the following measures to determine whether the performance goals
established by the Committee and applicable to Awards have been satisfied:

            (a) Net revenue and/or net revenue growth;

                                       12
<PAGE>   13
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

            (b)   Earnings before income taxes and amortization and/or earnings
                  before income taxes and amortization growth;

            (c)   Operating income and/or operating income growth;

            (d)   Net income and/or net income growth;

            (e)   Earnings per share and/or earnings per share growth;

            (f)   Total stockholder return and/or total stockholder return
                  growth;

            (g)   Return on equity;

            (h)   Operating cash flow return on income;

            (i)   Adjusted operating cash flow return on income;

            (j)   Economic value added; and

            (k)   Individual confidential business objectives.

            "PERFORMANCE PERIOD" means the period of service determined by the
Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Bonuses.

            "PLAN" means this Talarian Corporation 2000 Equity Incentive Plan,
as amended from time to time.

            "RESTRICTED STOCK AWARD" means an award of Shares pursuant to
Section 6.

            "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 18, and any
successor security.

            "STOCK BONUS" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 7.

            "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, consultant, independent
contractor, or advisor 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 Award while on leave from the employ of the Company or a

                                       13
<PAGE>   14
                                                          Talarian Corporation
                                                    2000 Equity Incentive Plan

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 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 the Award
Agreement.

            "VESTED SHARES" means "Vested Shares" as defined in the Award
Agreement.

                                       14

<PAGE>   15

                                                                        NO. ____

                              TALARIAN CORPORATION

                           2000 EQUITY INCENTIVE PLAN

                             STOCK OPTION AGREEMENT

               This Stock Option Agreement (this "AGREEMENT") is made and
entered into as of the Date of Grant set forth below (the "DATE OF GRANT") by
and between Talarian Corporation, a Delaware corporation (the "COMPANY"), and
the Optionee named below ("OPTIONEE"). Capitalized terms not defined herein
shall have the meanings ascribed to them in the Company's 2000 Equity Incentive
Plan (the "PLAN").

OPTIONEE:
                                      ------------------------------------------

SOCIAL SECURITY NUMBER:
                                      ------------------------------------------

OPTIONEE'S ADDRESS:
                                      ------------------------------------------

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

TOTAL OPTION SHARES:
                                      ------------------------------------------

EXERCISE PRICE PER SHARE:
                                      ------------------------------------------

DATE OF GRANT:
                                      ------------------------------------------

EXPIRATION DATE:
                                      ------------------------------------------
                                      (unless earlier terminated under Section 3
                                      hereof)
TYPE OF STOCK OPTION
(CHECK ONE):                          [ ] INCENTIVE STOCK OPTION
                                      [ ] NONQUALIFIED STOCK OPTION

             1. GRANT OF OPTION. The Company hereby grants to Optionee an option
(this "OPTION") to purchase up to the total number of shares of Common Stock of
the Company set forth above as Total Option Shares (collectively, the "SHARES")
at the Exercise Price Per Share set forth above (the "EXERCISE PRICE"), subject
to all of the terms and conditions of this Agreement and the Plan. If designated
as an Incentive Stock Option above, this Option is intended to qualify as an
"incentive stock option" ("ISO") within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "CODE"), to the extent permitted
under Code Section 422.

             2.      VESTING; EXERCISE PERIOD.

                     2.1 Vesting of Shares. This Option shall be exercisable as
it vests. Subject to the terms and conditions of the Plan and this Agreement,
this Option shall vest and become exercisable as to portions of the Shares as
follows: (a) this Option shall not be exercisable with respect to any of the
Shares until _________________, 200__ (the "FIRST VESTING DATE"); (b) if
Optionee has continuously provided services to the Company, or any

<PAGE>   16

Parent or Subsidiary of the Company, then on the First Vesting Date, this Option
shall become exercisable as to _______________% of the Shares; and (c)
thereafter this Option shall become exercisable as to an additional
_____________% of the Shares on each monthly anniversary of the First Vesting
Date, provided that Optionee has continuously provided services to the Company,
or any Parent or Subsidiary of the Company, at all times during the relevant
month. This Option shall cease to vest upon Optionee's Termination and Optionee
shall in no event be entitled under this Option to purchase a number of shares
of the Company's Common Stock greater than the "Total Option Shares."

                     2.2 Vesting of Options. Shares that are vested pursuant to
the schedule set forth in Section 2.1 hereof are "Vested Shares." Shares that
are not vested pursuant to the schedule set forth in Section 2.1 hereof are
"Unvested Shares."

                     2.3 Expiration. This Option shall expire on the Expiration
Date set forth above and must be exercised, if at all, on or before the earlier
of the Expiration Date or the date on which this Option is earlier terminated in
accordance with the provisions of Section 3 hereof.

             3.      TERMINATION.

                     3.1 Termination for Any Reason Except Death, Disability or
Cause. If Optionee is Terminated for any reason except Optionee's death,
Disability or Cause, then this Option, to the extent (and only to the extent)
that it is vested in accordance with the schedule set forth in Section 2.1
hereof on the Termination Date, may be exercised by Optionee no later than three
(3) months after the Termination Date, but in any event no later than the
Expiration Date.

                     3.2 Termination Because of Death or Disability. If Optionee
is Terminated because of death or Disability of Optionee (or the Optionee dies
within three (3) months after Termination other than for Cause or because of
Disability), then this Option, to the extent that it is vested in accordance
with the schedule set forth in Section 2.1 hereof on the Termination Date, may
be exercised by Optionee (or Optionee's legal representative or authorized
assignee) no later than twelve (12) months after the Termination Date, but in
any event no later than the Expiration Date. Any exercise after three months
after the Termination Date when the Termination is for any reason other than
Optionee's death or disability, within the meaning of Code Section 22(e)(3),
shall be deemed to be the exercise of a nonqualified stock option.

                     3.3 Termination for Cause. If Optionee is Terminated for
Cause, this Option will expire on the Optionee's date of Termination.

                     3.4 No Obligation to Employ. Nothing in the Plan or this
Agreement shall confer on Optionee any right to continue in the employ of, or
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 Optionee's employment or other relationship at any time,
with or without Cause.

                                       2
<PAGE>   17

             4.      MANNER OF EXERCISE.

                     4.1 Stock Option Exercise Agreement. To exercise this
Option, Optionee (or in the case of exercise after Optionee's death, Optionee's
executor, administrator, heir or legatee, as the case may be) must deliver to
the Company an executed stock option exercise agreement in the form attached
hereto as Exhibit A, or in such other form as may be approved by the Company
from time to time (the "EXERCISE AGREEMENT"), which shall set forth, inter alia,
Optionee's election to exercise this Option, the number of shares being
purchased, any restrictions imposed on the Shares and any representations,
warranties and agreements regarding Optionee's investment intent and access to
information as may be required by the Company to comply with applicable
securities laws. If someone other than Optionee exercises this Option, then such
person must submit documentation reasonably acceptable to the Company that such
person has the right to exercise this Option.

                     4.2 Limitations on Exercise. This Option may not be
exercised unless such exercise is in compliance with all applicable federal and
state securities laws, as they are in effect on the date of exercise. This
Option may not be exercised as to fewer than 100 Shares unless it is exercised
as to all Shares as to which this Option is then exercisable.

                     4.3 Payment. The Exercise Agreement shall be accompanied by
full payment of the Exercise Price for the Shares being purchased in cash (by
check), or where permitted by law:

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

      (b)    by surrender of shares of the Company's Common Stock that either:
             (1) have been owned by Optionee 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 Optionee in the open public market; and (3) are
             clear of all liens, claims, encumbrances or security interests;

      (c)    by waiver of compensation due or accrued to Optionee for services
             rendered;

      (d)    provided that a public market for the Company's stock exists: (1)
             through a "same day sale" commitment from Optionee and a
             broker-dealer that is a member of the National Association of
             Securities Dealers (an "NASD Dealer") whereby Optionee irrevocably
             elects to exercise this 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 Optionee and an NASD Dealer whereby
             Optionee irrevocably elects to exercise this 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

                                       3
<PAGE>   18

             NASD Dealer irrevocably commits upon receipt of such Shares to
             forward the Exercise Price directly to the Company; or

      (e)    by any combination of the foregoing.

                     4.4 Tax Withholding. Prior to the issuance of the Shares
upon exercise of this Option, Optionee must pay or provide for any applicable
federal or state withholding obligations of the Company. If the Committee
permits, Optionee may provide for payment of withholding taxes upon exercise of
this Option by requesting that the Company retain Shares with a Fair Market
Value equal to the minimum amount of taxes required to be withheld. In such
case, the Company shall issue the net number of Shares to the Optionee by
deducting the Shares retained from the Shares issuable upon exercise.

                     4.5 Issuance of Shares. Provided that the Exercise
Agreement and payment are in form and substance satisfactory to counsel for the
Company, the Company shall issue the Shares registered in the name of Optionee,
Optionee's authorized assignee, or Optionee's legal representative, and shall
deliver certificates representing the Shares with the appropriate legends
affixed thereto.

             5. NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES. To the extent
this Option is an ISO, if Optionee sells or otherwise disposes of any of the
Shares acquired pursuant to the ISO on or before the later of (a) the date two
(2) years after the Date of Grant, and (b) the date one (1) year after transfer
of such Shares to Optionee upon exercise of this Option, then Optionee shall
immediately notify the Company in writing of such disposition.

             6. COMPLIANCE WITH LAWS AND REGULATIONS. The exercise of this
Option and the issuance and transfer of Shares shall be subject to compliance by
the Company and Optionee with all applicable requirements of federal and state
securities laws and with all applicable requirements of any stock exchange on
which the Company's Common Stock may be listed at the time of such issuance or
transfer. Optionee understands that the Company is under no obligation to
register or qualify the Shares with the SEC, any state securities commission or
any stock exchange to effect such compliance.

             7. NONTRANSFERABILITY OF OPTION. This Option may not be transferred
in any manner other than under the terms and conditions of the Plan or by will
or by the laws of descent and distribution and may be exercised during the
lifetime of Optionee only by Optionee. The terms of this Option shall be binding
upon the executors, administrators, successors and assigns of Optionee.

             8. TAX CONSEQUENCES. Set forth below is a brief summary as of the
date the Board adopted the Plan of some of the federal tax consequences of
exercise of this Option and disposition of the Shares. THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THIS OPTION OR DISPOSING
OF THE SHARES.

                                       4
<PAGE>   19

                     8.1 Exercise of Incentive Stock Option. To the extent this
Option qualifies as an ISO, there will be no regular federal income tax
liability upon the exercise of this Option, although the excess, if any, of the
fair market value of the Shares on the date of exercise over the Exercise Price
will be treated as a tax preference item for federal income tax purposes and may
subject the Optionee to the alternative minimum tax in the year of exercise.

                     8.2 Exercise of Nonqualified Stock Option. To the extent
this Option does not qualify as an ISO, there may be a regular federal income
tax liability upon the exercise of this Option. Optionee will be treated as
having received compensation income (taxable at ordinary income tax rates) equal
to the excess, if any, of the fair market value of the Shares on the date of
exercise over the Exercise Price. The Company may be required to withhold from
Optionee's compensation or collect from Optionee and pay to the applicable
taxing authorities an amount equal to a percentage of this compensation income
at the time of exercise.

                     8.3 Disposition of Shares. The following tax consequences
may apply upon disposition of the Shares.

                            a. Incentive Stock Options. If the Shares are held
for twelve (12) months or more after the date of the transfer of the Shares
pursuant to the exercise of an ISO and are disposed of two (2) years or more
after the Date of Grant, any gain realized on disposition of the Shares will be
treated as capital gain for federal income tax purposes. If Shares purchased
under an ISO are disposed of within the applicable one (1) year or two (2) year
period, any gain realized on such disposition will be treated as compensation
income (taxable at ordinary income rates) to the extent of the excess, if any,
of the fair market value of the Shares on the date of exercise over the Exercise
Price.

                            b. Nonqualified Stock Options. If the Shares are
held for more than twelve (12) months after the date of the transfer of the
Shares pursuant to the exercise of an NQSO, any gain realized on disposition of
the Shares will be treated as long-term capital gain.

                            c. Withholding. The Company may be required to
withhold from Optionee's compensation or collect from the Optionee and pay to
the applicable taxing authorities an amount equal to a percentage of this
compensation income.

             9. PRIVILEGES OF STOCK OWNERSHIP. Optionee shall not have any of
the rights of a stockholder with respect to any Shares until the Shares are
issued to Optionee.

             10. INTERPRETATION. Any dispute regarding the interpretation of
this Agreement shall be submitted by Optionee or the Company to the Committee
for review. The resolution of such a dispute by the Committee shall be final and
binding on the Company and Optionee.

             11. ENTIRE AGREEMENT. The Plan is incorporated herein by reference.
This Agreement and the Plan and the Exercise Agreement constitute the entire
agreement and

                                       5
<PAGE>   20

understanding of the parties hereto with respect to the subject matter hereof
and supersede all prior understandings and agreements with respect to such
subject matter.

             12. NOTICES. Any notice required to be given or delivered to the
Company under the terms of this Agreement shall be in writing and addressed to
the Corporate Secretary of the Company at its principal corporate offices. Any
notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated above or to such other address as
such party may designate in writing from time to time to the Company. All
notices shall be deemed to have been given or delivered upon: personal delivery;
three (3) days after deposit in the United States mail by certified or
registered mail (return receipt requested); one (1) business day after deposit
with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile.

             13. SUCCESSORS AND ASSIGNS. The Company may assign any of its
rights under this Agreement. This Agreement shall be binding upon and inure to
the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding upon
Optionee and Optionee's heirs, executors, administrators, legal representatives,
successors and assigns.

             14. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of California,
without regard to that body of law pertaining to choice of law or conflict of
law.

             15. ACCEPTANCE. Optionee hereby acknowledges receipt of a copy of
the Plan and this Agreement. Optionee has read and understands the terms and
provisions thereof, and accepts this Option subject to all the terms and
conditions of the Plan and this Agreement. Optionee acknowledges that there may
be adverse tax consequences upon exercise of this Option or disposition of the
Shares and that the Company has advised Optionee to consult a tax advisor prior
to such exercise or disposition.

                                       6
<PAGE>   21

            IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in duplicate by its duly authorized representative and Optionee has
executed this Agreement in duplicate as of the Date of Grant.

TALARIAN CORPORATION                         OPTIONEE

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

-----------------------------------          -----------------------------------
(Please print name)                            (Please print name)

-----------------------------------
(Please print title)

                                       7
<PAGE>   22

                                    EXHIBIT A

                         STOCK OPTION EXERCISE AGREEMENT

<PAGE>   23

                                    EXHIBIT A

                              TALARIAN CORPORATION
                     2000 EQUITY INCENTIVE PLAN (THE "PLAN")
                         STOCK OPTION EXERCISE AGREEMENT

I hereby elect to purchase the number of shares of Common Stock of Talarian
Corporation (the "Company") as set forth below:

<TABLE>
<S>                                                  <C>
Optionee                                             Number of Shares Purchased:
        ---------------------------------------                                 --------------------
Social Security Number:                              Purchase Price per Share:
                       ------------------------                               ----------------------
Address:                                             Aggregate Purchase Price:
        ---------------------------------------                               ----------------------
                                                     Date of Option Agreement:
        ---------------------------------------                               ----------------------

Type of Option:   [ ] Incentive Stock Option         Exact Name of Title to Shares:
                  [ ] Nonqualified Stock Option                                    -----------------
</TABLE>

1. DELIVERY OF PURCHASE PRICE. Optionee hereby delivers to the Company the
Aggregate Purchase Price, to the extent permitted in the Option Agreement (the
"Option Agreement") as follows (check as applicable and complete):

[ ]     in cash (by check) in the amount of $_____________________, receipt of
        which is acknowledged by the Company;

[ ]     by cancellation of indebtedness of the Company to Optionee in the amount
        of $___________________________________;

[ ]     by delivery of ______________________________ fully-paid, nonassessable
        and vested shares of the Common Stock of the Company owned by Optionee
        for at least six (6) months prior to the date hereof (and which have
        been paid for within the meaning of SEC Rule 144), or obtained by
        Optionee in the open public market, and owned free and clear of all
        liens, claims, encumbrances or security interests, valued at the current
        Fair Market Value of $____________________ per share;

[ ]     by the waiver hereby of compensation due or accrued to Optionee for
        services rendered in the amount of $___________________________________;

[ ]     through a "same-day-sale" commitment, delivered herewith, from Optionee
        and the NASD Dealer named therein, in the amount of
        $_______________________________; or

[ ]     through a "margin" commitment, delivered herewith from Optionee and the
        NASD Dealer named therein, in the amount of $__________________________.

2. MARKET STANDOFF AGREEMENT. Optionee, if requested by the Company and an
underwriter of Common Stock (or other securities) of the Company, agrees not to
sell or otherwise transfer or dispose of any Common Stock (or other securities)
of the Company held by Optionee during the period requested by the managing
underwriter following the effective date of a registration statement of the
Company filed under the Securities Act, provided that all officers and directors
of the Company are required to enter into similar agreements. Such agreement
shall be in writing in a form satisfactory to the Company and such underwriter.
The Company may impose stop-transfer instructions with respect to the shares (or
other securities) subject to the foregoing restriction until the end of such
period.

3. TAX CONSEQUENCES. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX
CONSEQUENCES AS A RESULT OF OPTIONEE'S PURCHASE OR DISPOSITION OF THE SHARES.
OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX CONSULTANT(S)
OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE
SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE.

4. ENTIRE AGREEMENT. The Plan and Option Agreement are incorporated herein by
reference. This Exercise Agreement, the Plan and the Option Agreement constitute
the entire agreement and understanding of the parties and supersede in their
entirety all prior understandings and agreements of the Company and Optionee
with respect to the subject matter hereof, and are governed by California law
except for that body of law pertaining to choice of law or conflict of law.

Date:
     ------------------------------          -----------------------------------
                                             SIGNATURE OF OPTIONEE

<PAGE>   24

                                 SPOUSAL CONSENT

        I acknowledge that I have read the foregoing Stock Option Exercise
Agreement (the "AGREEMENT") and that I know its contents. I hereby consent to
and approve all of the provisions of the Agreement, and agree that the shares of
the Common Stock of Talarian Corporation purchased thereunder (the "SHARES") and
any interest I may have in such Shares are subject to all the provisions of the
Agreement. I will take no action at any time to hinder operation of the
Agreement on these Shares or any interest I may have in or to them.

                                                       Date:
             ------------------------------------           --------------------
             SIGNATURE OF OPTIONEE'S SPOUSE

             ------------------------------------
             SPOUSE'S NAME - TYPED OR PRINTED

             ------------------------------------
             OPTIONEE'S NAME - TYPED OR PRINTED

<PAGE>   25

                                                                        NO. ____

                              TALARIAN CORPORATION

                           2000 EQUITY INCENTIVE PLAN

                             STOCK OPTION AGREEMENT
                          (For Non-Employee Directors)

               This Stock Option Agreement (this "AGREEMENT") is made and
entered into as of the Date of Grant set forth below (the "DATE OF GRANT") by
and between Talarian Corporation, a Delaware corporation (the "COMPANY"), and
the Optionee named below ("OPTIONEE"). Capitalized terms not defined herein
shall have the meanings ascribed to them in the Company's 2000 Equity Incentive
Plan (the "PLAN").

OPTIONEE:
                                      ------------------------------------------

SOCIAL SECURITY NUMBER:
                                      ------------------------------------------

OPTIONEE'S ADDRESS:
                                      ------------------------------------------

TOTAL OPTION SHARES:
                                      ------------------------------------------

EXERCISE PRICE PER SHARE:
                                      ------------------------------------------

DATE OF GRANT:
                                      ------------------------------------------

EXPIRATION DATE:
                                      ------------------------------------------
                                      (unless earlier terminated under Section 3
                                      hereof)

TYPE OF STOCK OPTION:                 Nonqualified Stock Option
                                      ------------------------------------------

             1. GRANT OF OPTION. The Company hereby grants to Optionee an option
(this "OPTION") to purchase up to the total number of shares of Common Stock of
the Company set forth above as Total Option Shares (collectively, the "SHARES")
at the Exercise Price Per Share set forth above (the "EXERCISE PRICE"), subject
to all of the terms and conditions of this Agreement and the Plan.

             2.      VESTING; EXERCISE PERIOD.

                     2.1 Vesting of Shares. Subject to the terms and conditions
of the Plan and this Agreement, this Option shall be exercisable as it vests.
Subject to the terms and conditions of the Plan and this Agreement, this Option
shall vest as to 25% of the Shares on the first anniversary of the Date of
Grant, and as to 2.08333% of the Shares monthly thereafter until all of the
Shares are fully vested, so long as the Optionee continuously remains a director
of the Company.

<PAGE>   26

                     2.2 Expiration. This Option shall expire on the Expiration
Date set forth above and must be exercised, if at all, on or before the earlier
of the Expiration Date or the date on which this Option is earlier terminated in
accordance with the provisions of Section 3 hereof.

             3. TERMINATION. Except as provided below in this Section, this
Option shall terminate and may not be exercised if Optionee ceases to be a
member of the Board of Directors of the Company ("BOARD MEMBER"). The date on
which Optionee ceases to be a Board Member shall be referred to as the
"TERMINATION DATE."

                     3.1 Termination for Any Reason Except Death, Disability or
Cause. If Optionee ceases to be a Board Member for any reason except death,
Disability or Cause, then this Option may be exercised by Optionee no later than
three (3) months after the Termination Date, but in any event no later than the
Expiration Date.

                     3.2 Termination Because of Death or Disability. If Optionee
ceases to be a Board Member due to Optionee's death or Disability (or dies
within 3 months after Termination other than for Cause or because of
Disability), then this Option may be exercised by Optionee (or Optionee's legal
representative or authorized assignee) no later than twelve (12) months after
the Termination Date, but in any event no later than the Expiration Date.

                     3.3 Termination for Cause. If Optionee is Terminated for
Cause, this Option will expire on the Optionee's date of Termination.

             4.      MANNER OF EXERCISE.

                     4.1 Stock Option Exercise Agreement. To exercise this
Option, Optionee (or in the case of exercise after Optionee's death, Optionee's
executor, administrator, heir or legatee, as the case may be) must deliver to
the Company an executed stock option exercise agreement in the form attached
hereto as Exhibit A, or in such other form as may be approved by the Company
from time to time (the "EXERCISE AGREEMENT"), which shall set forth, inter alia,
Optionee's election to exercise this Option, the number of shares being
purchased, any restrictions imposed on the Shares and any representations,
warranties and agreements regarding Optionee's investment intent and access to
information as may be required by the Company to comply with applicable
securities laws. If someone other than Optionee exercises this Option, then such
person must submit documentation reasonably acceptable to the Company that such
person has the right to exercise this Option.

                     4.2 Limitations on Exercise. This Option may not be
exercised unless such exercise is in compliance with all applicable federal and
state securities laws, as they are in effect on the date of exercise. This
Option may not be exercised as to fewer than 100 Shares unless it is exercised
as to all Shares as to which this Option is then exercisable.

                                       2
<PAGE>   27

                     4.3 Payment. The Exercise Agreement shall be accompanied by
full payment of the Exercise Price for the Shares being purchased in cash (by
check), or where permitted by law:

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

      (b)    by surrender of shares of the Company's Common Stock that either:
             (1) have been owned by Optionee 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 Optionee in the open public market; and (3) are
             clear of all liens, claims, encumbrances or security interests;

      (c)    by waiver of compensation due or accrued to Optionee for services
             rendered;

      (d)    provided that a public market for the Company's stock exists: (1)
             through a "same day sale" commitment from Optionee and a
             broker-dealer that is a member of the National Association of
             Securities Dealers (an "NASD DEALER") whereby Optionee irrevocably
             elects to exercise this 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 Optionee and an NASD Dealer whereby
             Optionee irrevocably elects to exercise this 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

      (e)    by any combination of the foregoing.

                     4.4 Tax Withholding. Prior to the issuance of the Shares
upon exercise of this Option, Optionee must pay or provide for any applicable
federal or state withholding obligations of the Company. If the Committee
permits, Optionee may provide for payment of withholding taxes upon exercise of
this Option by requesting that the Company retain Shares with a Fair Market
Value equal to the minimum amount of taxes required to be withheld. In such
case, the Company shall issue the net number of Shares to the Optionee by
deducting the Shares retained from the Shares issuable upon exercise.

                     4.5 Issuance of Shares. Provided that the Exercise
Agreement and payment are in form and substance satisfactory to counsel for the
Company, the Company shall issue the Shares registered in the name of Optionee,
Optionee's authorized assignee, or Optionee's legal representative, and shall
deliver certificates representing the Shares with the appropriate legends
affixed thereto.

                                       3
<PAGE>   28

             5. COMPLIANCE WITH LAWS AND REGULATIONS. The exercise of this
Option and the issuance and transfer of Shares shall be subject to compliance by
the Company and Optionee with all applicable requirements of federal and state
securities laws and with all applicable requirements of any stock exchange on
which the Company's Common Stock may be listed at the time of such issuance or
transfer. Optionee understands that the Company is under no obligation to
register or qualify the Shares with the SEC, any state securities commission or
any stock exchange to effect such compliance.

             6. NONTRANSFERABILITY OF OPTION. This Option may not be transferred
in any manner other than under the terms and conditions of the Plan or by will
or by the laws of descent and distribution and may be exercised during the
lifetime of Optionee only by Optionee. The terms of this Option shall be binding
upon the executors, administrators, successors and assigns of Optionee.

             7. TAX CONSEQUENCES. Set forth below is a brief summary as of the
date the Board adopted the Plan of some of the federal tax consequences of
exercise of this Option and disposition of the Shares. THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THIS OPTION OR DISPOSING
OF THE SHARES.

                     7.1 Exercise of Nonqualified Stock Option. There may be a
regular federal income tax liability upon the exercise of this Option. Optionee
will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the fair market value of the
Shares on the date of exercise over the Exercise Price. The Company may be
required to withhold from Optionee's compensation or collect from Optionee and
pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income at the time of exercise.

                     7.2 Disposition of Shares. If the Shares are held for more
than twelve (12) months after the date of the transfer of the Shares pursuant to
the exercise of an NQSO, any gain realized on disposition of the Shares will be
treated as long-term capital gain.

             8. PRIVILEGES OF STOCK OWNERSHIP. Optionee shall not have any of
the rights of a stockholder with respect to any Shares until the Shares are
issued to Optionee.

             9. INTERPRETATION. Any dispute regarding the interpretation of this
Agreement shall be submitted by Optionee or the Company to the Committee for
review. The resolution of such a dispute by the Committee shall be final and
binding on the Company and Optionee.

             10. ENTIRE AGREEMENT. The Plan is incorporated herein by reference.
This Agreement and the Plan and the Exercise Agreement constitute the entire
agreement and understanding of the parties hereto with respect to the subject
matter hereof and supersede all prior understandings and agreements with respect
to such subject matter.

                                       4
<PAGE>   29

             11. NOTICES. Any notice required to be given or delivered to the
Company under the terms of this Agreement shall be in writing and addressed to
the Corporate Secretary of the Company at its principal corporate offices. Any
notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated above or to such other address as
such party may designate in writing from time to time to the Company. All
notices shall be deemed to have been given or delivered upon: personal delivery;
three (3) days after deposit in the United States mail by certified or
registered mail (return receipt requested); one (1) business day after deposit
with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile.

             12. SUCCESSORS AND ASSIGNS. The Company may assign any of its
rights under this Agreement. This Agreement shall be binding upon and inure to
the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding upon
Optionee and Optionee's heirs, executors, administrators, legal representatives,
successors and assigns.

             13. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of California,
without regard to that body of law pertaining to choice of law or conflict of
law.

             14. ACCEPTANCE. Optionee hereby acknowledges receipt of a copy of
the Plan and this Agreement. Optionee has read and understands the terms and
provisions thereof, and accepts this Option subject to all the terms and
conditions of the Plan and this Agreement. Optionee acknowledges that there may
be adverse tax consequences upon exercise of this Option or disposition of the
Shares and that the Company has advised Optionee to consult a tax advisor prior
to such exercise or disposition.

            IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in duplicate by its duly authorized representative and Optionee has
executed this Agreement in duplicate as of the Date of Grant.

TALARIAN CORPORATION                         OPTIONEE

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

-----------------------------------          -----------------------------------
(Please print name)                          (Please print name)

-----------------------------------
(Please print title)

                                       5
<PAGE>   30

                                    EXHIBIT A

                         STOCK OPTION EXERCISE AGREEMENT

<PAGE>   31

                                    EXHIBIT A

                              TALARIAN CORPORATION
                     2000 EQUITY INCENTIVE PLAN (THE "PLAN")
                         STOCK OPTION EXERCISE AGREEMENT
                          (For Non-Employee Directors)

         I hereby elect to purchase the number of shares of Common Stock of
Talarian Corporation (the "Company") as set forth below:

<TABLE>
<S>                                                  <C>
Optionee                                             Number of Shares Purchased:
        ---------------------------------------                                 --------------------
Social Security Number:                              Purchase Price per Share:
                       ------------------------                               ----------------------
Address:                                             Aggregate Purchase Price:
        ---------------------------------------                               ----------------------
                                                     Date of Option Agreement:
        ---------------------------------------                               ----------------------

Type of Option:       Nonqualified Stock Option      Exact Name of Title to Shares:
                                                                                   -----------------
</TABLE>

1. DELIVERY OF PURCHASE PRICE. Optionee hereby delivers to the Company the
Aggregate Purchase Price, to the extent permitted in the Option Agreement (the
"Option Agreement") as follows (check as applicable and complete):

[ ]     in cash (by check) in the amount of $_____________________, receipt of
        which is acknowledged by the Company;

[ ]     by cancellation of indebtedness of the Company to Optionee in the amount
        of $___________________________________;

[ ]     by delivery of ______________________________ fully-paid, nonassessable
        and vested shares of the Common Stock of the Company owned by Optionee
        for at least six (6) months prior to the date hereof (and which have
        been paid for within the meaning of SEC Rule 144), or obtained by
        Optionee in the open public market, and owned free and clear of all
        liens, claims, encumbrances or security interests, valued at the current
        Fair Market Value of $____________________ per share;

[ ]     by the waiver hereby of compensation due or accrued to Optionee for
        services rendered in the amount of $__________________________________ ;

[ ]     through a "same-day-sale" commitment, delivered herewith, from Optionee
        and the NASD Dealer named therein, in the amount of
        $_______________________________; or

[ ]     through a "margin" commitment, delivered herewith from Optionee and the
        NASD Dealer named therein, in the amount of
        $_________________________________________.

2. MARKET STANDOFF AGREEMENT. Optionee, if requested by the Company and an
underwriter of Common Stock (or other securities) of the Company, agrees not to
sell or otherwise transfer or dispose of any Common Stock (or other securities)
of the Company held by Optionee during the period requested by the managing
underwriter following the effective date of a registration statement of the
Company filed under the Securities Act, provided that all officers and directors
of the Company are required to enter into similar agreements. Such agreement
shall be in writing in a form satisfactory to the Company and such underwriter.
The Company may impose stop-transfer instructions with respect to the shares (or
other securities) subject to the foregoing restriction until the end of such
period.

3. TAX CONSEQUENCES. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX
CONSEQUENCES AS A RESULT OF OPTIONEE'S PURCHASE OR DISPOSITION OF THE SHARES.
OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX CONSULTANT(S)
OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE
SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE.

4. ENTIRE AGREEMENT. The Plan and Option Agreement are incorporated herein by
reference. This Exercise Agreement, the Plan and the Option Agreement constitute
the entire agreement and understanding of the parties and supersede in their
entirety all prior understandings and agreements of the Company and Optionee
with respect to the subject matter hereof, and are governed by California law
except for that body of law pertaining to choice of law or conflict of law.

Date:
     ------------------------------          -----------------------------------
                                             SIGNATURE OF OPTIONEE

<PAGE>   32

                                 SPOUSAL CONSENT

        I acknowledge that I have read the foregoing Stock Option Exercise
Agreement (the "AGREEMENT") and that I know its contents. I hereby consent to
and approve all of the provisions of the Agreement, and agree that the shares of
the Common Stock of Talarian Corporation purchased thereunder (the "SHARES") and
any interest I may have in such Shares are subject to all the provisions of the
Agreement. I will take no action at any time to hinder operation of the
Agreement on these Shares or any interest I may have in or to them.

                                                       Date:
             -------------------------------------          --------------------
             SIGNATURE OF OPTIONEE'S SPOUSE

             -------------------------------------
             SPOUSE'S NAME - TYPED OR PRINTED

             -------------------------------------
             OPTIONEE'S NAME - TYPED OR PRINTED

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]