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                                                                   EXHIBIT 10.25

[LOGO]

October 6, 1998
Mr. Anthony Bettencourt
2802 Vizzolini Court
Pleasanton, CA 94566

Dear Anthony:

Verity is pleased to extend your employment for a one year period beginning 
September 5, 1998 (the "Term"). Your role will remain Senior Vice President, 
Worldwide Sales and Product Marketing, reporting directly to Verity's CEO. Your 
monthly salary will remain $16,666.67. Your compensation package will include a 
commission plan providing for the payment of a minimum of $150,000 in 
commissions with respect to the year ending August 31, 1999, plus a $50,000 
incentive bonus payable on or before June 30, 1999. During the Term, (i) your 
salary may not be reduced and (ii) unless you voluntarily terminate or are 
terminated by the Company for "cause", as defined below, you will be paid 
commissions of a minimum of $150,000 with respect to your services during the 
Term.

If your employment by the Company terminates prior to June 30, 1999 (other than 
as a result of a termination due to your death or a permanent disability or a 
termination by the company without "cause", as defined below), you will not be 
entitled to receive the $50,000 incentive bonus.

Your employment with Verity may be terminated by you or Verity at any time. 
However, if the company terminates your employment without cause prior to the 
end of the Term under this agreement (the "End Date"), (i) you will be 
entitled to received payments on Verity's standard payroll dates at the rate 
of $29,166.67 per month (comprised of $16,666.67 in salary and $12,500.00 in 
commissions), less withholding, from the termination date until the End Date 
and (ii) you will be entitled to receive the incentive bonus of $50,000 on or 
before June 30, 1999. You shall not be entitled to any such benefits if your 
employment is terminated by the Company for cause or by you voluntarily. For 
these purposes, "cause" will be defined to mean (i) your violation of any 
material provision of the Inventions Agreement (as defined below), (ii) any act 
of theft or dishonesty, (iii) any immoral or illegal act which as a detrimental 
effect on this business or reputation of the company or its affiliates or (iv) 
any material failure to use reasonable efforts to perform reasonably requested 
tasks after written notice and a reasonable opportunity to comply with such 
notice. You agree that the benefits stated in this paragraph shall be your sole 
and exclusive remedy for any damages or injury arising out of or related to any 
termination of your employment by Verity.

This letter and the company's standard agreement relating to proprietary rights 
between you and Verity (the "Inventions Agreement") set forth the terms of your 
employment with the company and supersede any prior representations or 
agreements, whether written or oral. This letter may not be modified or 
amended, except by a written agreement, signed by you and the company.

Sincerely

/s/ GARY J. SHONA
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Gary J. Shona
President and CEO

I agree to and accept the above terms of employment with Verity, Inc. for the 
year beginning September 5, 1998.

/s/ SIG                                          10-10-98
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Signature                                          Date