**[      * ] = Certain confidential information contained in this document, marked by      brackets, has been omitted and filed separately with the Securities and Exchange      Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as      amended.**

**Exhibit        10.66**

**Chordiant        Software, Inc.**

**2005        Equity Incentive Plan**

**2008-2009        Performance Share Unit Program**

**Adopted:  October        11, 2007**

**1.**
**Purpose.**

**2.**
**Definitions.**

**(a)**
***“Actual        Award”***

**(b)**
***“Certification        Date”***

**(c)**
***“Designated        Participant”***
** **

**(d)**
***“Maximum        Award”***

**(e)**
***“Other        Performance Goal”***

**(f)**
***“Performance        Period”***

**3.**
**How        Awards Are Earned Under the Program.**

**(a)**
***General        Program Description.***
** **
*provided, however,*
**Exhibit A**

**(b)**
***Designated        Participants.***

*e.g*

**(c)**
***Performance        Goals and Other Performance Goals.***

**4.**
**Other        Program Provisions.**

**(a)**
***Distribution        of Actual Awards.  ***
**Exhibit A**
*in excess*

**(b)**
***Employment        and Termination.***

**(c)**
***No        Employment or Service Rights.***

**(d)**
***Program        Administration.***
*provided,        however, *

**(e)**
***Stockholder        Rights.***
* *
*provided, however,*

**(f)**
***Validity.***

**(g)**
***Governing        Plan Document***
*.*

----

**[              * ] = Certain confidential information contained in this document,              marked by              brackets, has been omitted and filed separately with the Securities              and Exchange              Commission pursuant to Rule 24b-2 of the Securities Exchange Act of              1934, as              amended.**

|   | **Exhibit                  A** |
|--------|--------------------------------|

**2008-2009        Performance Share Unit Program**

**Award        Calculation Methodology**

**Exhibit A**

**Award        Type & Size**

| ·   | Designated                  Participants will be granted performance-based Restricted Stock                  Units                  (RSUs) under Chordiant’s 2005 Equity Incentive Plan. RSUs are bookkeeping                  entries, not representing any actual ownership of shares of Common                  Stock                  until the Award has vested and shares of Common Stock have been                  delivered.  The number of RSUs granted corresponds on a 1:1                  basis to shares of Common Stock that may be delivered in the future                  based                  on the provisions of the Plan, the Program and the applicable Award                  Agreement. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                  Award Agreement issued to the Designated Participant will set forth                  the                  number of shares subject to the total Target Award and the total                  Maximum                  Award that such  Designated Participant can                  earn. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Date        of Grant**

| ·   | Awards                  subject to this **Exhibit A** will be granted on                  October 11, 2007. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

**Performance        Period & Vesting**

| ·   | Performance                  will be measured over the two year period constituting the Company’s                  fiscal years 2008 and 2009 (the “Performance                  Period”) |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Subject                  to the Designated Participant’s Continuous Service through the                  Certification Date, the shares of Common Stock subject to the Actual                  Award                  will vest in full on the Certification                  Date. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Except                  in the case of a Change in Control, the Certification Date shall                  occur                  within the ten (10) day period after the date on which the Company                  files                  its annual report on Form 10-K for fiscal year 2009.  If a                  Change in Control occurs prior to the Committee’s determination in such                  ten (10) day period, the effective date of the Change in Control                  shall be                  the Certification Date (as further described                  below). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Award        Metrics**

| ·   | Up                  to 50% of the Maximum Award will be earned based on achievement                  of                  Cumulative Revenue (such 50% , the “Maximum Revenue Award”), as                  follows: |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Performance                  Level | Cumulative                  Revenue | %                  of Maximum Revenue Award Earned | With                  Respect to this 50% of the Award: |
|------------------------------------|-------------------------------------|----------------------------------------------------|---------------------------------------------------------|
| Threshold                          | $[                  * ]             | 0%                                                 |                                                    |
| Target                             | $[                  * ]             | 66.67%                                             | “Target                  Award”             |
| Maximum                            | $[                  * ]             | 100%                                               | “Maximum                  Award”            |

| ·   | Up                  to 50% of the Maximum Award will be earned based on achievement                  of                  Cumulative Operating Income (such 50%, the “Maximum OI Award”), subject to                  reductions for the Other Performance Goal.  In order to earn any                  part of the Maximum OI Award, the Company must achieve Cumulative                  Operating Income of at least $[ * ] (the “Funding Gate”).  If                  the Funding Gate is not met, no part of the Maximum OI Award will                  be                  earned.  If the Funding Gate is met, the Maximum OI Award will                  be earned, subject to reduction based on the achievement of the                  Other                  Performance Goal, as follows: |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Performance                  Level | Cumulative                  Non-GAAP Operating Profit | %                  of Maximum OI Award Earned | With                  Respect to this 50% of the Award: |
|------------------------------------|-------------------------------------------------------|-----------------------------------------------|---------------------------------------------------------|
| Threshold                          | $[                  * ]                               | 0%                                            |                                                    |
| Target                             | $[                  * ]                               | 66.67%                                        | “Target                  Award”             |
| Maximum                            | $[                  * ]                               | 100%                                          | “Maximum                  Award”            |

| ·   | In                  applying the foregoing tables,  linear interpolation shall be                  used for Performance Levels that are other than the Threshold,                  Target and                  Maximum levels.  Moreover, in applying the percentage of a                  Maximum Award earned,  partial shares of Common Stock shall be                  rounded up to the nearest whole                  share. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Holding        Period**

| ·   | Each                  Designated Participant must not sell or otherwise transfer (excluding                  transfers to family trusts for tax planning purposes for which                  the                  Designated Participant is deemed to be the “beneficial owner” of the                  shares for purposes of the Exchange Act) any of the shares of Common                  Stock                  issued under the Actual Award until the earliest of (1) the fourth                  anniversary of the Date of Grant, (2) a Change in Control of the                  Company,                  (3) the certification by the Board that the Designated Participant                  is                  suffering an Unforeseeable Emergency, or (4) the termination of                  the                  Designated Participant’s Continuous Service with the Company as a result                  of an Involuntary Termination or as a result of the Designated                  Participant’s death or Disability (such period, the “Holding                  Period”). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Shares                  withheld by the Company to cover applicable tax withholdings will                  not be                  deemed a violation of the Holding                  Period. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                  Company will place appropriate legends on the certificates representing                  the shares of Common Stock issued under the Actual Award regarding                  the                  Holding Period, and will take such steps as otherwise reasonably                  necessary                  to enforce the Holding Period (including but not limited to placing                  the                  shares into an escrow account and issuance of a stop transfer order). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Effects        of a Change In Control**

| ·   | If                  the effective date of the Change in Control occurs prior to the                  Certification Date, Designated Participant will earn, as of immediately                  prior to the Change in Control, an Actual Award equal to the lesser                  of (1)                  1.0 of the Target Award (i.e., the number of shares determined                  under the                  tables above as if the Funding Gate was met and all applicable                  Performance                  Goals and the Other Performance Goal had been achieved at the Target                  level                  of performance) and (ii) the product of (a) 1.0 of the Target Award                  and                  (b) a fraction, the numerator of which is the number of months                  since the                  start of the Performance Period (rounded up for any partial months                  of                  service) plus 12 months, and the denominator of which is                  24.  The effective date of the Change in Control will be the                  Certification Date for purposes of the Program.  The Actual                  Award will be fully vested as of Certification                  Date. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Compliance        with Section 409A of the Code**

| ·   | It                  is intended that the Awards granted under the Program satisfy,                  to the                  greatest extent possible, the exception from the application of                  Section                  409A provided under Treasury Regulations Section 1.409A-1(b)(4)                  (i.e., the                  “short term deferral exception”). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Notwithstanding                  the foregoing, if the Company (or, if applicable, the successor                  entity                  thereto) determines that any Award under the Program constitutes                  a                  “deferral of compensation” under Section 409A of the Code (together, with                  any state law of similar effect, “Section 409A”) and if a Designated                  Employee is a “specified employee” of the Company or any successor entity                  thereto as such term is defined in Section 409A(a)(2)(B)(i) (a“Specified                  Employee”) as of the date of the Designated Participant’s “separation from                  service” (within the meaning of Treasury Regulations Section 1.409A-1(h))                  (such date, the “Separation Date”), then, solely to the extent necessary                  to avoid the incurrence of the adverse personal tax consequences                  under                  Section 409A resulting from the delivery of shares of Common Stock                  as a                  result of his or her separation from service (as defined above),                  the                  delivery of the shares of Common Stock (or any portion thereof)                  shall be                  delayed as follows:  on the earlier to occur of (i) the date                  that is six months and one day after the Separation Date or (ii)                  the date                  of the Designated Employee’s death (such earlier date, the “Delayed                  Initial Payment Date”), the Company (or the successor entity thereto, as                  applicable) shall (A) issue to the Designated Employee those shares                  subject to the Actual Award that the Designated Employee would                  otherwise                  have been issued through the Delayed Initial Payment Date if the                  issuance                  of the shares had not been delayed pursuant to this paragraph and                  (B)                  commence issuing the balance of the shares in accordance with the                  original                  issuance schedule described                  above.  |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | It                  is intended that each installment of the issuance of the shares                  provided                  for in the Program is a separate “payment” for purposes of Treasury                  Regulations Section 1.409A-2(b)(2). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Other        Terms & Conditions**

| ·   | No                  rights to dividends or dividend equivalents under the RSUs, except                  as                  provided under Section 11(a) of the                  Plan. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Definitions**

| ·   | “Change                  in Control” will have the meaning set forth in the Plan; provided,                  however, that Section 2(f)(v) will, for purposes of this Program,                  be                  revised to read as follows: “individuals who, on the date this Plan is                  adopted by the Board, are members of the Board (the “Incumbent Board”)                  cease for any reason to constitute at least a majority of the members                  of                  the Board during any 12-month period; *provided, however*, that if                  the appointment or election (or nomination for election) of any                  new Board                  member was approved or recommended by a majority vote of the members                  of                  the Incumbent Board then still in office, such new member shall,                  for                  purposes of the Plan, be considered a member of the Incumbent                  Board.” |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Cumulative                  Non-GAAP Operating Profit” means Cumulative Operating Income, excluding                  the following: |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | the                  effects of any “extraordinary items” as determined under                  GAAP; |
|----------------|------------------------------------------------------------------------------------------------------------------|

| 3.   | charges                  for stock based compensation; and |
|----------------|------------------------------------------------------------|

| 4.   | amortization                  of intangible assets or purchased                  software |
|----------------|-------------------------------------------------------------------------------------------|

| ·   | “Cumulative                  Operating Income” means total GAAP operating income as would be reported                  in the Company’s filings under Form 10-K, but excluding restructuring and                  other nonrecurring charges and the effects of any “extraordinary items” as                  determined under GAAP |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Cumulative                  Revenue” means total GAAP revenue as would be reported in the Company’s                  filings under Form 10-K, but excluding restructuring and other                  nonrecurring charges and the effects of any “extraordinary items” as                  determined under GAAP |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Good                  Reason” means the Designated Participant has resigned from all positions                  he or she then holds with the Company (or any successor thereto)                  if (1)                  one of the following actions has been taken:  (a) there is a                  material diminution of Designated Participant’s authority, duties, or                  responsibilities; *provided, however*, that Good Reason shall not                  be satisfied solely by reason of such Designated Participant’s retaining                  substantially the same position held prior to a Change in Control,                  but in                  a distinct legal entity or business unit of a larger entity following                  such                  Change in Control, (b) there is a material reduction in the Designated                  Participant’s annual base salary or target bonus opportunity, except to                  the extent the base salaries or target bonus opportunities (as                  applicable)                  of other similarly situated officers of the Company are accordingly                  reduced, (c) the Designated Participant is required to relocate                  his or her                  primary work location to a facility or location that would increase                  the                  Designated Participant’s one way commute distance by more than twenty (20)                  miles from the Designated Participant’s primary work location as of                  immediately prior to such change, or (d) the Company (or any successor                  thereto) materially breaches its obligations under this Program                  or any                  effective written employment agreement with the Designated Participant,                  and (2) the Designated Participant provides written notice to the                  Company’s General Counsel within thirty (30) days after such material                  change or reduction, (3) such material change or reduction is not                  remedied                  by the Company within thirty (30) days following the Company’s receipt of                  such written notice, and (4) the Designated Participant’s resignation is                  effective not later than sixty (60) days after the expiration of                  such                  thirty (30) day cure period. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Involuntary                  Termination” means a termination without Cause or a resignation for Good                  Reason.  A termination by reason of death or Disability shall                  not be considered an Involuntary                  Termination. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Other                  Performance Goal” means Cumulative Non-GAAP Operating                  Profit. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | “Unforeseeable                  Emergency” means a severe financial hardship to the Designated Participant                  after the issuance of the shares under the Actual Award, which                  hardship                  results from (1) an illness or accident of the Designated Participant                  or                  his or her  spouse, registered domestic partner, parent or                  child; (2) loss of the Designated Participant’s property due to casualty                  (including the need to rebuild the Designated Participant’s primary                  residence following damage to the home not otherwise covered by                  insurance); or (3) other similar extraordinary and unforeseeable                  circumstances arising as a result of events beyond the control                  of the                  Designated Participant. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|