X0202 4 2006-08-29 0 0001035096 WEBMETHODS INC WEBM 0001184792 GYENES PETER 3877 FAIRFAX RIDGE ROAD SOUTH TOWER VA 22030 1 0 0 0 Common Stock 2000 D Common Stock (Deferred Shares) 2006-08-29 4 A 0 10745.891 0.00 A 10745.891 D Stock Option (right to buy) 9.74 2006-06-10 2016-05-10 Common Stock 55188 55188 D Stock Option (right to buy) 9.74 2006-06-10 2016-05-10 Common Stock 3750 3750 D Each Deferred Share represents a contingent right to receive one share of Common Stock. The Deferred Shares vest on the first anniversary of the date of grant. Vested shares are deliverable when the reporting person's service on the Board of Directors terminates. Option vests ratably over 36 months following option grant date. Option vests ratably over three months following grant date. Edmund Graff, Attorney in Fact 2006-08-31