Exhibit 10.26

 

AMENDMENT TO CHANGE OF CONTROL AGREEMENT

 

This AMENDMENT TO THE CHANGE OF CONTROL AGREEMENT is made by and between
CHORDIANT SOFTWARE, INC. (the “Company”) and STEPHEN KELLY (“Executive”)
(collectively, the “Parties”) effective as of the last date it is signed by
either party. Capitalized terms not otherwise defined herein shall have the
meaning ascribed to them in the Change of Control Agreement.

 

The Parties agree as follows:

 

1.   The “RECITALS” section is restated in its entirety as follows:

 

“RECITALS

 

WHEREAS Executive is employed by the Company pursuant to the terms of
Executive’s offer letter from the Company dated November 14, 2002 (the “Offer
Letter”);

 

WHEREAS Executive has been granted restricted shares of the Company’s common
stock (“Restricted Shares”), as well as option(s) to purchase shares of the
Company’s common stock (the “Options”), pursuant to the applicable restricted
stock agreement(s), stock option agreement(s) and equity incentive plan(s)
(together, the “Prior Grants”);

 

WHEREAS in the future, Executive may be granted additional shares of restricted
stock and/or options to purchase the Company’s common stock, subject to the
Board’s sole discretion (together with Prior Grants, the “Stock Awards”); and

 

WHEREAS the Company believes it is imperative to provide Executive with
accelerated vesting of the Stock Awards, as well as other severance benefits, in
the event that Executive is terminated without Cause (as defined herein) or
resigns for Good Reason (as defined herein) in connection with a Change of
Control (as defined herein).

 

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants
contained herein, and other good and valuable consideration, the parties hereto
hereby agree as follows:”

 

2.   In paragraph 1(a), all references to “Options” shall be replaced by “Stock
Awards.”

 

3.   In paragraph 1(b), all references to paragraph 5 of Executive’s Offer
Letter shall be changed to “paragraph 7” of Executive’s Offer Letter.

 

4.   Paragraph 1(b)(iv) is restated in its entirety as follows: “Provided that
Executive is no longer an executive officer or director of the Company, then the
time period in which Executive is required to repay any promissory note, loan or
other indebtedness to the Company shall be extended by sixty (60) months.”

 

5.   Paragraph 1(b)(v) is restated in its entirety as follows: “The Company will
accelerate the vesting of the Stock Awards such that the greater of the
following shall vest within ten

 

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(10) days after the date Executive signs the Release: (a) 50% of the unvested
shares as of the Termination Date subject to the Stock Awards (after taking into
account any additional acceleration of vesting Executive may be receiving under
any plan document(s) governing the Stock Awards instituted prior to or after
this Agreement is executed, including any additional acceleration of vesting of
restricted stock under any restricted stock agreement(s)); or (b) all such
shares that would have vested if Executive had worked for the Company for twelve
(12) additional months beyond the Termination Date. This acceleration of vesting
will be in addition to any acceleration of vesting that the Executive would
otherwise receive under the Company’s 2000 Nonstatutory Equity Incentive Plan,
the Company’s 1999 Equity Incentive Plan, or any other plan document(s) and
including any additional acceleration of vesting of restricted stock under any
restricted stock agreement(s)). Executive shall have sixty (60) months to
exercise any vested Options in addition to any time specified in the plan
document(s) governing the Options. The Stock Awards shall continue to be
governed by the terms of the applicable restricted stock agreement(s), stock
option agreements and equity incentive plan documents.”

 

6.   In paragraph 1(b)(vi), the reference to “Paragraph 1(b)(iv) of this
Agreement” shall be changed to “Paragraph 1(b)(v) of this Agreement.”

 

7.   The entire paragraph numbered 1(e) shall be deleted.

 

8.   Paragraph 5(a) is restated in its entirety as follows: “This Agreement,
including all exhibits hereto, constitutes the complete, final and exclusive
embodiment of the entire agreement between the parties with regard to the
subject matter hereof. It is entered into without reliance on any promise or
representation, written or oral, other than those expressly contained herein,
and it supersedes any other such promises or representations. Notwithstanding
the foregoing, nothing in this Agreement shall affect the parties’ rights or
obligations under the October 2002 restricted stock agreement or any other
applicable restricted stock or stock option agreements entered into prior to or
after the effective date of this Amendment or the Executive’s Employee
Proprietary Information and Inventions Agreement. This Agreement cannot be
modified except in a writing signed by Executive and a duly-authorized member of
the Board.”

 

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IN WITNESS WHEREOF, the Parties have executed this Amendment to the Change Of
Control Agreement as of the day and year written below.

 

         

Date:

 

January 10, 2003

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/s/    STEPHEN KELLY

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STEPHEN KELLY

           

Address:

 

c/o Chordiant Software, Inc.

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CHORDIANT SOFTWARE, INC.

Date:

 

January 10, 2003

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/s/    SAMUEL T. SPADAFORA

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Name:    Samuel T. Spadafora

Title:    Chairman of the Board