Document:

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                                                                    EXHIBIT 10.3

                                  KINZAN, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

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                                TABLE OF CONTENTS

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ARTICLE I         PURPOSE AND DEFINITIONS..................................................2

ARTICLE II        PARTICIPATION............................................................2

ARTICLE III       CONTRIBUTIONS............................................................2

ARTICLE IV        OPTIONS TO ACQUIRE SHARES................................................2

ARTICLE V         ACCOUNTS.................................................................4

ARTICLE VI        DISBURSEMENTS FROM ACCOUNT...............................................4

ARTICLE VII       ADMINISTRATION AND EXPENSES..............................................5

ARTICLE VIII      MERGERS AND OTHER SHARE ADJUSTMENTS......................................5

ARTICLE IX        AMENDMENT AND TERMINATION................................................6

ARTICLE X         MISCELLANEOUS............................................................6
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                                  KINZAN, INC.
                        2000 EMPLOYEE STOCK PURCHASE PLAN

ARTICLE I         PURPOSE AND DEFINITIONS

1.01   PURPOSE. The kinzan, inc. 2000 Employee Stock Purchase Plan, as
amended from time to time ("PLAN"), provides a convenient method of acquiring
shares of stock of kinzan, inc. ("COMPANY"), if you are eligible to
participate. The Plan is intended to qualify as an employee stock purchase
plan under section 423 of the Internal Revenue Code of 1986, as amended
("CODE") , but is not intended to be subject to section 401(a) of the Code or
the Employee Retirement Income Security Act of 1974, as amended.

1.02   DEFINITIONS. A term defined in the Plan shall have the meaning
ascribed to it wherever it is used herein unless the context indicates
otherwise.

ARTICLE II        PARTICIPATION

2.01   ADOPTION BY SUBSIDIARIES. The Company's Board of Directors may
authorize the adoption of the Plan by one or more subsidiary corporations of
the Company ("PARTICIPATING SUBSIDIARIES").

2.02   ELIGIBILITY TO PARTICIPATE. You are eligible to participate in an
Offering under the Plan if, as of the first day of such Offering, you are
regularly scheduled to work more than twenty hours a week (as determined by
reference to the Company's employment records) and more than five months a
year for the Company and its Participating Subsidiaries, and you have
completed at least six months of employment with the Company and its
Participating Subsidiaries.

2.03   PARTICIPATION AGREEMENT. Participation in the Plan is voluntary with
respect to each Offering. To participate in an Offering, you must be eligible
and must complete a written enrollment form provided by the Company
("PARTICIPATION AGREEMENT") authorizing payroll deductions from your
paycheck. Your Participation Agreement will remain in effect through each
consecutive Offering unless you choose to revise or revoke it, or you become
ineligible to participate in the Plan.

2.04   TERMINATION OF YOUR PARTICIPATION. You may withdraw at any time from
any Offering by written notice to the Committee in such form as it may
require. Your participation will also end upon your termination of employment
with the Company and its parent and subsidiary corporations or when you
become ineligible to participate (including by reason of the Company or any
Participating Subsidiary terminating its participation in the Plan).

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2.05   DESIGNATION OF BENEFICIARY. You shall, by written notice to the
Committee, designate a person or persons to receive the value of your Account
in the event of your death. You may, by written notice to the Committee
during employment, alter or revoke such designation, subject always to any
applicable law governing the designation of beneficiaries. Such written
notice shall be in such form and shall be executed in such manner as the
Committee may determine. If upon your death you have not designated a
beneficiary under the Plan or such beneficiary does not survive you, the
value of your Account shall be paid to your estate.

ARTICLE III       CONTRIBUTIONS

3.01   PAYROLL DEDUCTIONS. You may accumulate savings to purchase Shares in
an Offering by authorizing payroll deductions pursuant to a Participation
Agreement, subject to such minimum and maximum limits (expressed in dollars
or as a percentage of wages) as the Committee may impose. Such savings shall
be credited to your Account with respect to the Offering to which they
relate. Payroll deductions for an Offering shall commence with the first
paycheck you receive during such Offering and shall end with the last
paycheck you receive during such Offering. Paychecks will be treated as
having been received when they are sent out or otherwise distributed.

3.02   CHANGE IN RATE OF CONTRIBUTIONS. You may reduce (but not increase) your
rate of payroll deduction during an Offering by written notice to the Committee
in such form and manner as it requires. Such reduction shall be effective as of
the first pay period thereafter by which the Company is able to process the
change.

3.03   POSSESSION OF CONTRIBUTIONS. All payroll deductions made pursuant to the
Plan shall be held for your benefit and on your behalf by the Company or any
custodian selected by the Committee. Such payroll deductions shall constitute
your property notwithstanding that they may be commingled with the general
assets of the Company or such custodian.

ARTICLE IV        OPTIONS TO ACQUIRE SHARES

4.01   MAXIMUM NUMBER OF SHARES. The number of shares of common stock of the
Company ("SHARES") available for issuance under the Plan shall be 500,000
Shares with respect to the ten years following the adoption of the Plan. Any
Shares that are not actually purchased under the Plan for any reason shall
remain available for purchase hereunder.

4.02   OFFERINGS. The Company will offer Shares for purchase under the Plan
("OFFERING") for six-month periods beginning on January 1 and July 1 of each
calendar year, commencing at such time as determined at the Company's
discretion. The Company may make additional Offerings for different periods,
provided that no Offering shall extend for more than 27 months.

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4.03   OPTIONS. Each Offering shall constitute an option to purchase whole
Shares at a price per Share equal to 85% of the lesser of (i) the fair market
value of a Share on the first day of such Offering or (ii) the fair market
value of a Share on the last day of such Offering. The fair market value of a
Share on any date shall be its closing price reported by the principal stock
exchange on which Shares are traded for such date or for the next earliest
date on which Shares were traded.

4.04   INDIVIDUAL LIMIT ON OPTIONS. No participant shall be granted or
otherwise permitted to have one or more options to purchase during any
calendar year shares of stock of the Company or any of its parent or
subsidiary corporations under the Plan or other plans qualifying under
Section 423 of the Code having a fair market value (as of the applicable date
of grant) of more than $25,000 in the aggregate for all such options.

4.05   PURCHASE OF SHARES. Unless you have withdrawn or become ineligible
prior to the end of an Offering, your accumulated savings shall be
automatically applied on the last day of the Offering to purchase whole
Shares to the extent feasible in accordance with the Offering. Such purchase
shall be treated as the exercise of an option represented by the Offering.
Any amount remaining in your Account after such purchase shall be applied to
the next Offering. You are not entitled or permitted to make cash payments in
lieu of payroll deductions to acquire Shares in an Offering. In no event
shall any Shares be purchased pursuant to an Offering more than 27 months
after the commencement of the Offering.

4.06   SOURCE OF SHARES. Shares may be purchased directly from the Company or
by the Broker pursuant to directions from the Committee. If the Broker
acquires Shares pursuant to an open market transaction, such purchase shall
be made at the market price prevailing on the applicable exchange.

4.07   RESTRICTION ON 5% OWNERS. No employee shall be permitted to purchase
Shares under the Plan if, immediately after such purchase, such employee
would possess stock having 5% or more of the total combined voting power of
all classes of stock of the Company or any of its parent or subsidiary
corporations, determined by applying the stock ownership rules of section
424(d) of the Code.

4.08   PROHIBITION AGAINST ASSIGNMENT. Your right to purchase Shares under
the Plan are exercisable only by you and may not be sold, pledged, assigned,
surrendered or transferred in any manner other than by will or the laws of
descent and distribution. Any attempt to sell, pledge, assign, surrender or
transfer such rights shall be void and shall automatically cause any purchase
rights held by you to be terminated. In such event, the Committee may refund
in cash, without interest, all contributions credited to your Account.

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ARTICLE V         ACCOUNTS

5.01   ESTABLISHMENT OF ACCOUNTS. The Committee shall cause to be maintained
a separate account for each participant ("ACCOUNT") to record the amount of
payroll deductions with respect to each Offering, and the purchase price for
and the number of Shares, credited to such participant. No interest or other
earnings shall be credited to any contributions under the Plan.

5.02   CUSTODY OF SHARES. The Committee shall select a broker ("BROKER")
which shall hold and act as custodian of Shares purchased pursuant to the
Plan. Absent instructions to the contrary from a participant, certificates
for Shares purchased will not be issued by the Broker to a participant.

5.03   VOTING OF SHARES.  You shall direct the Broker as to how to vote the
full Shares credited to your Account.

ARTICLE VI        DISBURSEMENTS FROM ACCOUNT

6.01   WITHDRAWAL OF CONTRIBUTIONS. Upon your withdrawal from any Offering,
all or any designated portion of the contributions credited to your Account
with respect to such Offering shall be disbursed, without interest, to you.

6.02   WITHDRAWAL OF SHARES. You may at any time withdraw all or any number
of whole Shares credited to your Account under the Plan by directing the
Broker to cause your Shares to be (i) issued as certificates in your name,
(ii) transferred to another brokerage account of yours or (iii) sold and the
net proceeds (less applicable commissions and other charges) distributed in
cash to you.

6.03   DISTRIBUTION UPON TERMINATION. Upon termination of your participation
in the Plan as a whole prior to the expiration of all Offerings thereunder,
all contributions and Shares credited to your Account shall be disbursed to
and as directed by you in accordance with the Plan. All contributions
credited to your Account that have not been applied to the purchase of Shares
shall be returned to you without interest, unless such termination coincides
with the expiration of an Offering and Shares are purchased accordingly.
Shares credited to your Account shall, in accordance with instructions to the
Broker from you and at your expense, be distributed in the same manner as
permitted upon any withdrawal.

6.04   FAILURE TO PROVIDE DIRECTIONS. If within ninety (90) days after you
have withdrawn from the Plan you have not notified the Broker of your
instructions as set forth herein, the Committee shall direct the Broker to
issue Shares in your name and deliver the same to you at your last known
address.

6.05   SALE OF SHARES. If you elect to receive the proceeds from the sale of
your Shares, the amount payable shall be determined by the Broker based upon
the proceeds of the sale of your Shares at the market price prevailing on the
New York Stock Exchange, less any applicable commissions, fees and charges.
The Broker, acting on your behalf, shall take such action as soon as
practicable, but in

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no event later than five (5) business days after receipt of notification from
you. The Company assumes no responsibility in connection with such
transactions, and all commissions, fees or other charges arising in
connection therewith shall be borne directly by you. The amount thus
determined shall be paid in a lump sum to you.

ARTICLE VII       ADMINISTRATION AND EXPENSES

7.01   COMMITTEE. The Plan shall be administered by a committee, which shall
consist of such members as determined by the Company ("COMMITTEE"). The
Committee shall interpret and apply the provisions of the Plan in its good
faith discretion, and the Committee's decision is final and binding. The
Committee may establish rules for the administration of the Plan.

7.02   EXPENSES FOR PURCHASE OF SHARES. The Company shall pay brokerage
commissions, fees and other charges, if any, incurred for purchases of Shares
with payroll deductions made under the Plan.

7.03   EXPENSES TO SELL OR TRANSFER SHARES. All brokerage commissions, fees or
other charges in connection with any sale or other transfer of your Shares shall
be paid by you. In addition, any charges by the Broker in connection with your
request to have certificates representing Shares registered in your name shall
be paid by you.

7.04   POST-TERMINATION EXPENSES. Upon your termination of employment or your
withdrawal from the Plan for any other reason, all commissions, fees and
other charges thereafter relating to your Account will be your responsibility.

ARTICLE VIII      MERGERS AND OTHER SHARE ADJUSTMENTS

8.01   MERGERS OR OTHER CONSOLIDATIONS. In the event that the Company is a
party to a merger or consolidation, outstanding options under the Plan shall
be subject to the agreement of merger or consolidation. Such agreement,
without the consent of any participant, may provide for:

       (a)  the continuation of such outstanding options by the Company
            (if the Company is the surviving corporation);

       (b)  the assumption of the Plan and such outstanding options
            by the surviving corporation or its parent;

       (c)  the substitution by the surviving corporation or its parent
            of options with substantially the same terms for such
            outstanding options, including the substitution of shares of
            common stock of the surviving corporation with such
            appropriate adjustments so as not to enlarge or diminish the
            rights of participants; or

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       (d)  the cancellation of such outstanding options without payment
            of any consideration other than the return of contributions
            credited to participants' Accounts, without interest.

8.02   ADJUSTMENTS TO SHARES OR OPTIONS. In the event of a subdivision of the
outstanding common stock, a declaration of a dividend payable in Shares, a
declaration of an extraordinary dividend payable in a form other than Shares
in an amount that has a material effect on the fair market value of the
Shares, a combination or consolidation of the outstanding Shares into a
lesser number of Shares, a recapitalization, a spin-off, a reclassification
or a similar occurrence, the Company's Board of Directors shall make
appropriate adjustments so as not to enlarge or diminish the rights of
participants, in one or more of (i) the number of Shares available for
purchase under the Plan, (ii) the number of Shares subject to purchase under
outstanding options or (iii) the purchase price per Share under each
outstanding option.

ARTICLE IX        AMENDMENT AND TERMINATION

9.01   The Board of Directors of the Company may at any time terminate or
amend the Plan in any respect, including, but not limited to, terminating the
Plan prior to the end of an Offering Period or reducing the term of an
Offering Period; provided, however, that the number of Shares subject to
purchase under the Plan shall not be increased without approval of the
Company's shareholders.

9.02   The Plan and all rights of participants to purchase any Shares
hereunder shall terminate at the earlier of the conclusion of the last
Offering Period authorized herein, or as otherwise determined by and at the
discretion of the Company.

9.03   Upon termination of the Plan at the end of an Offering Period, Shares
shall be issued to participants, and cash, if any, remaining in the Accounts
of the participants, shall be refunded to them, as if the Plan were
terminated at the end of an Offering Period. Upon termination of the Plan
prior to the end of an Offering Period, all amounts not previously applied to
the purchase of Shares shall be distributed to you.

9.04   No amendments to the Plan which affects the responsibilities or duties
of the Broker shall be effective without the agreement and approval of the
Broker.

ARTICLE X         MISCELLANEOUS

10.01  JOINT OWNERSHIP. Shares may be registered in the name of the
participant, or, if he or she so designates, in his or her name jointly with
his or her spouse, with a right of survivorship.

10.02  NO EMPLOYMENT RIGHTS. The Plan shall not be deemed to constitute a
contract of employment between the Company and you, nor shall it interfere
with

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the right of the Company to terminate you and treat you without regard to the
effect which such treatment might have upon you under the Plan.

10.03  TAX WITHHOLDING. The Company shall withhold from amounts to be paid to
you as wages, any applicable Federal, state or local withholding or other
taxes which it is from time to time required by law to withhold.

10.04  COMPLIANCE WITH LAWS. The Company may direct the Broker to delay the
issuance of any certificate in the name of any person or the delivery of
Shares to any person if it determines that listing, registration or
qualification of such Shares upon any national securities exchange or under
any state or federal law, or the consent or approval of any governmental
regulatory body, is necessary or desirable as a condition of, or in
connection with, the sale or purchase of Shares under the Plan, until such
listing, registration, qualification, consent or approval shall have been
effected or obtained, or otherwise provided for, free of any conditions not
acceptable to the Company.

10.05  GOVERNING LAW. The Plan shall be governed by, and construed in
accordance with, the laws of the State of Delaware and without regard to the
conflict of laws principles of such state.

                                     KINZAN, INC.

                                     By: /s/ Jeffrey P. Higgins
                                         -----------------------
                                         Name: Jeffrey P. Higgins
                                         Title: Vice President and
                                                General Counsel

                                      7<PAGE>

                             EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement") dated as of this 1st day of
June, 1999 (the "Effective Date") is entered into by and between Kinzan.com
(the "Company") and Gari L. Cheever ("Executive"). In consideration of the
mutual covenants and agreements hereinafter set forth, the parties agree as
follows:

                                1. EMPLOYMENT

     1.1    POSITION. During the Employment Period (as hereinafter defined)
and subject to the terms and conditions set forth herein, the Company agrees
to employ Executive as its President and Chief Executive Officer, reporting
directly to the Board of Directors of the Company (the "Board"). Executive
shall be recommended for election to the Board as of the Effective Date.

     1.2    DUTIES AND RESPONSIBILITIES. During the Employment Period,
Executive shall devote sufficient time and energy to fulfill his
responsibilities to the business of the Company and shall not be engaged in
any competitive business activity without the express written consent of the
Company. Executive hereby represents that he is not a party to any agreement
which would be an impediment to entering into this Agreement and that he is
permitted to enter into this Agreement and perform the obligations hereunder;
provided that Executive has obligations of confidentiality to his previous
employer, Encanto Networks, Inc.

     1.3    PERIOD OF EMPLOYMENT. The "Employment Period" means the period
commencing on the Effective Date and terminating on the earlier of three (3)
years from the Effective Date or as set forth in paragraph 5 of this
Agreement.

     1.4    COMPENSATION.

     (a)    BASE SALARY. In consideration of and as compensation of and as
compensation for the services agreed to be performed by Executive hereunder,
the Company agrees to pay Executive a gross annual base salary of ONE HUNDRED
SEVENTY-FIVE THOUSAND DOLLARS ($175,000.00) during the initial twelve (12)
months of the Employment Period and thereafter in an amount to be mutually
agreed upon by the Executive and the Compensation Committee of the Company's
Board of Directors, such amounts to be payable in accordance with the
Company's standard payment policy, less applicable withholdings and
deductions (the "Base Salary"). Such Base Salary will be subject to increase
at any time during the Employment Period at the sole discretion of the
Compensation Committee of the Board with the consent of the Executive.

     (b)    BONUS. Executive's bonus shall be governed by the Company's
management incentive plan as approved by the Company's Board of Directors for
executive officers of the Company.

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     (c)    PARTICIPATION IN BENEFIT PLAN. During the Employment Period,
Executive and his dependents, as applicable, shall be entitled to participate
in any employee benefit plans and programs that are generally available to
other executive officers of the Company (including, without limitation,
health, disability, life insurance, annual physical or retirement plan)
subject to the terms and conditions of such plan or program and to the extent
permitted by law.

     (d)    COBRA COVERAGE. The Company will use its best efforts to assure
coverage and provided in paragraph (d) above for Executive and his
dependents; however, to the extent the Company is unable to provide such
coverage or to provide coverage consistent with Executive's existing
coverage, the Company agrees to reimburse Executive for his premium payments
and the payments of his dependents for continuation of the present health
coverage or its equivalent. Provided, however, that the Company shall
discontinue such reimbursement (or a portion thereof) for each such
individual upon Executive and/or each eligible dependent becoming eligible
for participation under the Company's health plans without any limitation for
preexisting conditions.

     (e)    VACATION. During the Employment Period, Executive will be
entitled to four (4) weeks of paid vacation per annum.

     (f)    REIMBURSEMENT OF EXPENSES. Company shall pay all ordinary and
necessary expenses incurred by Executive in the conduct of Company's
business, including but not limited to all travel and accommodation expenses.
Company will pay all reasonable travel and accommodation expenses for
Executive's spouse whenever necessary to accompany Executive in the business
of the Company. Executive agrees to provide Company with itemized accounts,
receipts and other documentation for such reasonable expenses as are
reasonably required by the Company. In addition, the Company will reimburse
Executive for all reasonable costs associated with Executive's moving his
household and related items as part of this relocation to the San Diego area.

                         2. RESTRICTIVE COVENANT.

     During the Employment Period, and except for involvement by Executive on
Boards of Directors of other companies as approved by the Board of the
Company, as hereinafter set forth:

     2.1    Executive shall devote his time and energy to the performance of
Executive's duties described herein, except during periods of illness or
vacation periods.

     2.2    Executive shall not directly or indirectly provide services to or
through any person, firm or other entity except the Company, unless otherwise
authorized by the Company in writing.

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     2.3    Executive shall not render any services of any kind or character
for Executive's own account or for any other person, firm or entity without
first obtaining the Company's written consent.

     2.4    Notwithstanding the foregoing, Executive shall have the right to
perform such incidental services as are necessary in connection with (i) his
private passive investments, but only if Executive is not obligated or
required to (and shall not in fact) devote any managerial efforts which
interfere with the services required to be performed by him hereunder, (ii)
his charitable or community activities or (iii) his participation in trade or
professional organizations, but only if such incidental services do not
significantly interfere with the performance of Executive's services
hereunder, and (iv) his service on boards of directors as mutually agreed to
by the Executive and the Company.

                          3. NON-COMPETITION.

     3.1    During the Employment Period, and subject to paragraph 2.4 in
this Agreement, Executive shall not directly or indirectly own, manage,
operate, join, control or participate in the ownership, management, operation
or control of, or be employed by or connected in any manner with, any
enterprise which is engaged in any business competitive with that which the
Company is at the time conducting or proposing to conduct, provided, however,
that such restriction shall not apply to any passive investment representing
an interest of less than two percent (2%) of an outstanding class of publicly
traded securities of any corporation or other enterprise which is not, at the
time of such investment, engaged in a business competitive with the Company's
business.

     3.2    Executive acknowledges that the services that he shall provide to
the Company under this Agreement are unique and that irreparable harm shall be
suffered by the Company in the event of the breach by Executive of any of his
obligations under this paragraph 3, paragraph 2 or paragraph 4 of this
Agreement, and that the Company shall be entitled, in addition to its other
rights and remedies, whether legal or equitable, to enforce such obligations
by an injunction or decree of specific performance. Any claims asserted by
Executive against the Company shall not constitute a defense in any
injunction action brought by the Company to obtain specific performance of
such obligations.

                        4. CONFIDENTIAL INFORMATION.

     4.1    Executive understands that the Company and its affiliates possess
Proprietary Information (as defined below) which is important to its business
and that this Agreement creates a relationship of confidence and trust
between Executive and the Company and its affiliates with regard to
Proprietary Information. Nothing in this paragraph 4 shall be deemed modified
or terminated in the event of the termination or expiration of this Agreement.

     4.2    For purposes of this Agreement, "Proprietary Information" is
information that was or will be developed, created, or discovered by or on
behalf of the

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Company and its affiliates and predecessors or is developed, created or
discovered by Executive while performing services under this Agreement, or
which became or will become known by, or was or is conveyed to the Company
and its affiliates which has commercial value in the Company's and its
affiliates' business. "Proprietary Information" includes, but is not limited
to, trade secrets, ideas, techniques, business, product, or franchise
development plans, customer information, franchisee information and any other
information concerning the Company's and its affiliates' actual or anticipated
business, development, personnel information, or which is received in
confidence by or for the Company and its affiliates from any other person.

     4.3    For one (1) year after the termination of this Agreement,
Executive will keep in confidence and trust, and will not use or disclose,
any Proprietary Information without prior written consent of the Board.

     4.4    Executive understands that the Company and its affiliates possess
or will possess "Company Documents" which are important to its business. For
purposes of this Agreement, "Company Documents" are documents or other media
that contain or embody Proprietary Information or any other information
concerning the business, operations or plans of the Company and its
affiliates, whether such documents have been prepared by Executive or by
others. "Company Documents" include, but are not limited to, blueprints,
drawings, photographs, charts, graphs, notebooks, customer lists, computer
disks, personnel files, tapes or printouts and other printed, typewritten or
handwritten documents. All Company Documents are and shall remain the sole
property of the Company, Executive agrees not to remove any Company Documents
from the business premises of the Company or deliver any Company Documents to
any person or entity outside the Company, except as required to do in
connection with performance of the services under this Agreement. Executive
further agrees that, immediately upon the Company's request and in any event
upon completion of Executive's services, Executive shall deliver to the
Company all Company Documents, apparatus, equipment and other physical
property or any reproduction of such property.

     4.5    During the term of this Agreement and for one (1) year
thereafter, Executive will not encourage or solicit any employee of the
Company or any affiliate to leave the Company or any affiliate for any reason.

     4.6    Injunctive Relief: Executive acknowledges and agrees that the
covenants and obligations contained in paragraphs 2, 3 and 4 of this
Agreement relate to special unique and extraordinary matters and that a
violation of any of such covenants and obligations may cause the Company
irreparable injury for which adequate remedy at law will not be available.
Therefore, Executive agrees that the Company shall be entitled to an
injunction, restraining order, or other equitable relief from any court of
competent jurisdiction, restraining Executive from committing any violation
of the covenants and obligations set forth therein.

<PAGE>

                             5. STOCK OPTION.

     In addition to the Common Stock of the Company that Executive owns by
virtue of being a founder of the Company, Executive shall be entitled to a
stock option to purchase 1,600,000 shares of Common Stock of the Company for
the option price of $.10 per share. The Company encourages Executive to
purchase stock in the Company as its Chief Executive Officer and a voting
member of the Board of Directors. These option shares will vest 25% on March
  , 2000 and the remaining 75% in equal monthly installments over the 36 month
period commencing on March   , 2000.

     5.1    Notwithstanding the foregoing, in the event the Company enters
into any transaction or series of related transactions (including, without
limitation, any reorganization, merger or consolidation) which will result in
the corporation's ultimate beneficial stockholders immediately prior to such
transaction not holding (by virtue of such shares or securities issued solely
with respect thereto) at least a majority of the voting power of the surviving
or continuing entity, or in the event of any sale of all or substantially all
of the assets of the corporation, unless the corporation's ultimate
beneficial stockholders immediately prior to such sale will, as a result of
such sale, hold (by virtue of securities issued as consideration for the
corporation's sale) at least a majority of the voting power of the purchasing
entity, all unvested options shall become fully vested upon the closing of
such transaction.

                        6. TERMINATION OF EMPLOYMENT.

     6.1    METHOD OF TERMINATION. Executive's employment pursuant to this
Agreement and the Employment Period provided for herein shall terminate upon
the first of the following to occur:

     (a)    Executive's death;

     (b)    Date that written notice is deemed given or made by the Company
to Executive of his inability to perform his services. Such notice may be
issued when the Board has reasonably determined that Executive has become
unable to substantially perform his services and duties hereunder because of
physical or mental illness, injury or disability and that it is reasonably
likely that he will not be able to substantially resume performing his
services and duties on substantially the terms and conditions as set forth in
this Agreement;

     (c)    Date that final written notice is deemed given or made by the
Company to Executive of termination for "cause," provided Executive is given
an initial prior written notice of the general facts underlying the for
"cause" event(s) and an opportunity to cure such event(s), if such event is
capable of being cured. For purposes of this Agreement, "cause" shall mean
any one of the following:

            (1)  Gross negligence or the willful or repeated failure of
Executive to perform his duties and responsibilities to the satisfaction of
the Board or any breach by Executive of his fiduciary duties to the Company
or any material term of this Agreement; or

<PAGE>

            (2)  The conviction of Executive for a felony involving dishonesty
by Executive;

     (d)    Executive's resignation or voluntary departure as an officer or
employee of the Company; or

     (e)    Date that written notice is deemed given or made by the Company
to Executive of Executive's termination without "cause."

   Pursuant to sections (d) and (e) of paragraph 5.1, each of Executive and
the Company agree that they shall have the separate right to terminate
Executive's employment with the Company at any time, for any reason, with or
without cause.

     6.2    EFFECT OF TERMINATION FOR CAUSE, EXECUTIVE'S RESIGNATION OR OTHER
EVENTS. Upon the termination of Executive for cause or Executive's
resignation or voluntary departure or departure pursuant to section (a) or
(b) of paragraph 5.1 of this Agreement, Executive will not be entitled to any
additional compensation or other rights or benefits from the Company; and, as
a result, the Company shall be obligated to pay Executive only that portion
of his Base Salary that Executive has earned prior to the date of termination
of Executive's services or Executive's departure or resignation.

     6.3    Upon the termination by the Company of Executive without cause,
Executive shall be entitled to payment of his then Base Salary as
compensation pursuant to Section 1.4(a) above for a period of one year
following the date of his termination by the Company.

                            7. MISCELLANEOUS.

     7.1   NOTICES. All notices, demands and request required by this
Agreement shall be in writing and shall be deemed to have been given or made
for all purposes (i) upon personal delivery, (ii) one day after being sent,
when sent by professional overnight courier service, (iii) fifteen days
after posting when sent by registered or certified mail, or (iv) on the date
of transmission when sent by telegraph, telegram, telex, or other form of
"hard copy" transmission to either party hereto at the address set forth
below or at such other address as either party may designate by notice
pursuant to this paragraph.

     If to the Company, to:

     Kinzan.com
     2111 Palomar Airport Road, Suite 250
     Carlsbad, CA 92009
     Attn: Board of Directors

     And a Copy to:

<PAGE>

     Joe A. Rudberg
     Thompson & Knight, P.C.
     1700 Pacific Avenue
     Suite 3300
     Dallas, Texas 75201

     If to Executive, to:

     Gari L. Cheever
     520 Lowell Avenue
     Palo Alto, CA 94301

     7.2    ASSIGNMENT. This Agreement shall be binding on, and shall inure
to the benefit of the parties hereto and their respective heirs, legal
representatives, successors and assigns; provided, however, that Executive
may not assign, transfer or delegate his rights or obligations hereunder and
any attempt to do so shall be void; and provided, further, that after an
assignment or transfer of the Company's obligations under this Agreement to a
third party, the Company shall remain secondarily liable to fulfill the terms
of this Agreement if the third party assignee or transferee is unwilling or
unable to fulfill such terms.

     7.3    DEDUCTIONS. All amounts paid to Executive hereunder are subject
to all deductions required by law, as authorized under this Agreement, and as
authorized by Executive from time to time.

     7.4    ENTIRE AGREEMENT. This Agreement contains the entire agreement of
the parties with respect to the subject matter hereof, and all prior
agreements, written or oral, are merged herein and are of no further force or
effect.

     7.5    AMENDMENT. This Agreement may be modified or amended only by a
written agreement signed by amendment of the Board and Executive.

     7.6    WAIVERS. No waiver of any term or provision of this Agreement
will be valid unless such waiver is in writing signed by the party against
whom enforcement of the waiver is sought. The waiver of any term or provision
of this Agreement shall not apply to any subsequent breach of this Agreement.

     7.7    COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but together they
shall constitute one and the same instrument.

     7.8    SEVERABILITY. The provisions of this Agreement shall be deemed
severable, and if any part of any provision is held illegal, void or invalid
under applicable law, such provision may be changed to the extent reasonably
necessary to make the provision, as so changed, legal, valid and binding. If
any provision of this Agreement is held illegal, void or invalid in its
entirety, the remaining provisions of this Agreement

<PAGE>

shall not in any way be affected or impaired but shall remain binding in
accordance with their terms.

     7.9    GOVERNING LAW.  This Agreement shall, in all respects, be
governed by the laws of the state of California applicable to agreements
executed and to be wholly performed within the State of California.

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

                          KINZAN.COM

                          By: /s/ Robert J. Frankenberg
                          ---------------------------
                              Robert J. Frankenberg

                          Title: Chairman, Board of Directors

                          /s/ Gari L. Cheever
                          ---------------------------
                          Gari L. Cheever

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