Exhibit 10.1

 

August 29, 2005

 

[Address]

 

Re:     Amendment to April 24, 1998 Offer Letter

 

Dear Sam:

 

This amendment (“Amendment”) to your April 24, 1998 offer letter (“Offer
Letter”) sets forth the benefits that Chordiant Software, Inc. (the “Company”)
is offering to you in connection with your continued employment with the
Company. The effective date of this Amendment is January 1, 2005.

 

1. Employment. Paragraph 1 of the Offer Letter shall be deleted in its entirety
and replaced with the following:

 

As Chairman and Chief Strategy Officer of the Company, you will work in
Cupertino, California and perform the duties customarily associated with this
position, and such duties as may be assigned to you by the Company’s Board of
Directors. Your employment with the Company will continue to be on an at-will
basis.

 

2. Compensation. Paragraph 2 of the Offer Letter shall be deleted and replaced
with the following:

 

Your base salary will be $250,000 per year, less standard deductions and
withholdings, paid semi-monthly. You will not participate in the 2005 Executive
Bonus Program.

 

3. Equity Grants. Paragraph 3 of the Offer Letter shall be deleted and replaced
with the following:

 

From time to time, the Board reviews the outstanding restricted stock and/or
additional options to purchase the Company’s common stock (the “Equity Awards”)
for senior Company executives and may issue additional Equity Awards in the
future at its discretion.

 

4. Termination. Subsection (ii) of Paragraph 6 shall be deleted in its entirety.

 

5. Post-Employment Consulting Period. Paragraph 8 shall be deleted in its
entirety and replaced with the following:

 

8. If at any time your employment, prior to a Change of Control (as defined in
the Change of Control Agreement defined below), with the Company (a) is
terminated without Cause (as defined in your Offer Letter), or (b) you resign
for any reason, and if

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you sign a general release of all claims in a form acceptable to the Company and
allow that release to become effective, then the Company will provide you with a
consulting agreement containing the following terms (in addition to standard
terms):

 

(i) Consulting Period. You will serve as a consultant for the Company beginning
on the first day after your termination of employment and continuing until you
reach age sixty-five (the “Consulting Period”). During the Consulting Period,
the Company will have the right to reasonably request you to perform consulting
services for the Company up to a maximum of 40 hours per month.

 

(b) Consulting Fees. During the Consulting Period, the Company will pay you
monthly consulting fees in an amount equal to $5,000. If you are requested by
the Board of Directors to serve as an advisor to the Board and to the Strategic
Planning Committee, the monthly consulting fee shall be increased to $10,000 for
those months you serve in that capacity.

 

(c) Insurance. During the Consulting Period, the Company will pay your and your
wife’s health care insurance premiums (either in the form of reimbursement for
COBRA premiums or payment of the premiums on an independent policy obtained by
you) up to a maximum of the then current COBRA premium rate per month.
Additionally, during the Consulting Period, the Company will, at its sole cost
and expense, procure and keep in effect a term life insurance policy for you in
the amount of One Million Dollars ($1,000,000).

 

(d) Equity Compensation. Any equity compensation that you were granted by the
Company will continue to vest during the Consulting Period, subject to the terms
and conditions of the applicable plan documents, stock option agreement(s),
restricted stock purchase agreement(s) and grant notice(s).

 

(e) Tax Treatment. The Company will issue you a Form 1099 for any payments made
to you during the Consulting Period, and thus payments made to you during the
Consulting Period will not be subject to payroll deductions or withholdings.

 

The consulting benefits set forth in this paragraph 8 are intended to be in
addition to any severance benefits that you may be eligible to receive under
your Offer Letter or your Change of Control Agreement (as defined below), and
nothing herein is intended to supersede those agreements.

 

6. Miscellaneous. A new paragraph 9 shall be added as follows:

 

This Amendment, including Exhibit A and your Change of Control Agreement dated
September 10, 2001, as amended February 27, 2004 (the “Change of Control
Agreement”) constitute the complete, final and exclusive embodiment of the
entire agreement between you and the Company with regard to this subject matter.
It is entered into without reliance on any promise or representation, written or
oral, other than those

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expressly contained herein, and it supersedes any other such promises,
warranties or representations (except as expressly provided herein). This
Amendment may not be modified or amended except in a writing signed by both you
and a duly authorized officer of the Company. This Amendment shall be deemed to
have been entered into and shall be construed and enforced in accordance with
the laws of the State of California as applied to contracts made and to be
performed entirely within California.

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If this Amendment is acceptable to you, please sign below and return the
original to me.

 

Sincerely,

 

/s/ Jack Moyer

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Jack Moyer Vice President, Human Resources ACCEPTED

/s/ Samuel T. Spadafora

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Samuel T. Spadafora

August 29, 2005

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Date

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Exhibit A

 

Original Offer Letter