Document:

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                                                                     EXHIBIT 4.3
                           CHORDIANT SOFTWARE, INC.

                                 SUBORDINATED
                         REGISTRATION RIGHTS AGREEMENT

     THIS SUBORDINATED REGISTRATION RIGHTS AGREEMENT (this "Agreement") is
entered into as of July 19, 2000 by and among CHORDIANT SOFTWARE, INC., a
Delaware corporation ("Chordiant") and the Sellers of the capital stock of WHITE
SPIDER SOFTWARE, INC., a Delaware corporation (the "Company"), identified on the
signature page hereto (the "Sellers").

                                   RECITALS

     A. Chordiant, the Company and the Sellers have entered into a Stock
Purchase Agreement of even date herewith (the "Purchase Agreement"), pursuant to
which Chordiant will acquire all of the issued share capital of the Company and
the Sellers will receive shares of common stock of Chordiant. Capitalized terms
used in this Agreement and not otherwise defined shall have the meanings given
to them in the Purchase Agreement.

     B. Chordiant and certain stockholders of Chordiant ("Rights Holders")
entered into that certain Amended and Restated Registration Rights Agreement
dated as of September 28, 1999 (the "Original Registration Rights Agreement")
pursuant to which Chordiant granted registration rights to the Rights Holders as
provided therein.

     C. In connection with the transactions contemplated by the Purchase
Agreement, Chordiant has agreed to provide the Sellers with certain subordinated
piggyback registration rights as more fully described herein.

                                   AGREEMENT

     The parties, intending to be legally bound, agree as follows:

SECTION 1: SUBORDINATED REGISTRATION RIGHTS

     1.1 Registrable Shares. As used in this Agreement, "Registrable Shares"
means the shares of common stock of Chordiant, par value $.001 per share
("Chordiant Common Stock") issued to the Sellers pursuant to the Purchase
Agreement and any shares of Chordiant Common Stock issued in respect thereof as
a result of any stock split, stock dividend, share exchange, merger,
consolidation or similar recapitalization; provided, however:

         (a) Registrable Shares held by a Seller (or permitted transferees,
successors or assigns of such Seller) shall cease to be Registrable Shares when:
(i) a registration statement covering such Registrable Shares shall have become
effective under the Securities Act of 1933, as amended (the "1933 Act") and such
Registrable Shares held by such Seller shall have been disposed of in accordance
with such registration statement, or (ii) all of the Registrable Shares then
held by a Seller (or permitted transferees, successors or assigns of such
Seller) may be transferred pursuant to Rule 144 under the 1933 Act, as such rule
may be amended from time to time, or any successor rule or regulation ("Rule
144") during the then current ninety (90) day period; and

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         (b) Registrable Shares shall not include any shares of Chordiant
Common Stock held in any "Escrow Account" pursuant to the Escrow Agreement dated
of even date herewith among Chordiant, James St. Jean, as Sellers' Agent, and
State Street Bank and Trust Company of California, NA, as Escrow Agent, until
such shares shall have been released from such Escrow Account in accordance with
the Escrow Agreement.

     1.2 Subordinated Piggyback Registration Rights.

         (a) Whenever Chordiant proposes to register any of its securities
under the 1933 Act (including for this purpose a registration effected by
Chordiant for stockholders other than the Sellers) in connection with the public
offering of such securities (other than a registration (i) on Form S-8, Form S-4
or any form which does not include substantially the same information as would
be required to be included in a registration statement covering the sale of the
Registrable Shares, or (ii) with respect to an employee benefit plan, or (iii)
solely in connection with a Rule 145 transaction under the 1933 Act), Chordiant
shall, each such time, promptly give each Seller written notice of such
registration together with a list of the jurisdictions in which Chordiant
intends to attempt to qualify such securities under applicable state securities
laws.

         (b) Upon the written request of each Seller given within twenty (20)
business after delivery of such written notice by Chordiant referred to in (a)
above, Chordiant shall, subject to the provisions of paragraph (c) and Section 3
below, use its best efforts to cause all of the Registrable Shares that each
such Seller has requested to be registered, to be registered under the 1933 Act
to the extent necessary to permit their sale or other disposition in accordance
with the intended methods of distribution specified in the request of such
Seller or Sellers.

         (c) Chordiant shall promptly advise all holders of Registrable Shares
requesting registration hereunder of any limitations imposed pursuant to Section
4.2, and shall notify each Seller of the number of Registrable Shares that may
be included in such registration.

         (d) Subject to Section 4.2, Chordiant may include any other shares of
Chordiant Common Stock in a registration made pursuant to this Section 1
(including issued and outstanding shares of Chordiant Common Stock as to which
the holders thereof have contracted with Chordiant for "piggyback" registration
rights).

SECTION 2.  Chordiant's Obligations

     2.1  Registration Statement.  In connection with the registration statement
referred to in Section 1.2, Chordiant shall:

          (a) Prepare and file with the SEC a registration statement with
respect to the Registrable Shares and thereafter use its reasonable efforts to
cause such registration statement to become effective for up to one hundred
twenty (120) days (or, if longer, during such period of time as Chordiant shall
keep a registration statement effective with respect to any shares of its common
stock).

          (b) Prepare and file with the SEC such amendments and supplements to
the registration statement and the prospectus used in connection therewith as
may be necessary to keep such registration statement effective for the period
set forth in Section 2.1(a) and to comply with the provisions of the 1933 Act
with respect to the sale or other disposition of the shares of Chordiant Common
Stock covered by such registration statement.

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

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         (c) Furnish to the Sellers such numbers of copies of the registration
statement, prospectus, and any amendments and supplements thereto, in conformity
with the requirements of the 1933 Act, and such other documents as the Sellers
may reasonably request, in order to facilitate the public sale or other
disposition by the Sellers of the Registrable Shares.

         (d) Promptly notify each Seller, at any time when a prospectus
relating thereto covered by a registration statement is required to be delivered
under the 1933 Act, upon Chordiant becoming aware that the prospectus included
in such registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing, and immediately thereafter, use reasonable
efforts to prepare and file with the SEC as soon as possible and furnish to each
Seller a copy of each supplement to or amendment of such prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such Registrable
Shares, such prospectus shall not include an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances under
which they are made.

     2.2 Rule 144. With a view to making available to the Sellers the benefits
of Rule 144 promulgated under the 1933 Act and any other rule or regulation of
the SEC that may at any time permit a Seller to sell securities of Chordiant to
the public without registration, Chordiant agrees to:

         (a) use its best efforts to make and keep public information
available, as those terms are understood and defined in Rule 144, at all times
after ninety (90) days after the closing date of the first registration
statement filed by Chordiant;

         (b) use its best efforts to file with the SEC in a timely manner all
reports and other documents required of Chordiant under the 1933 Act and the
Securities Exchanges Act of 1934 (the "1934 Act"); and

         (c) furnish to any Seller, so long as the Seller owns any Registrable
Shares, forthwith upon request: (i) a written statement by Chordiant that it has
complied with the reporting requirements of Rule 144, the 1933 Act and the 1934
Act; (ii) a copy of the most recent annual or quarterly report of Chordiant and
such other reports and documents so filed by Chordiant; and (iii) such other
information as may be reasonably requested in order to permit any Seller to
avail itself of any rule or regulation of the SEC or any state securities
authority which permits the selling of any such securities without registration
or pursuant to such form.

     2.3 Blue Sky Filings. Chordiant shall use its reasonable efforts to
register and qualify the securities covered by a registration statement made
pursuant to Section 1.2, under the Blue Sky laws of such jurisdictions as shall
be reasonably requested by the Sellers, provided that Chordiant shall not be
required in connection therewith or as a condition thereto to qualify to do
business or to file a general consent to service of process in any such states
or jurisdictions.

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

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SECTION 3.  The Sellers' Obligations

     3.1  Documents and Information. In connection with a registration statement
made pursuant to Section 1.2, the Sellers shall each:

          (a)  Complete, execute, acknowledge and/or deliver such
questionnaires, indemnification agreements, custody agreements, underwriting
agreements (if the registration is underwritten) and other documents,
certificates and instruments as are reasonably required by Chordiant or any
underwriter(s) and which are customary in connection with the registration and
offering, provided that any such underwriting agreement shall not provide for
indemnification or contribution obligations on the part of the Sellers
materially greater than the obligations of the Sellers set forth in Section 5.3.
Each Seller shall promptly provide to Chordiant such information concerning such
Seller, its ownership of Chordiant's securities, the intended method of
distribution and such other information as may be required by applicable law or
regulation or as may be reasonably requested by Chordiant.

          (b)  Upon receipt of any notice from Chordiant of the happening of any
event of the kind described in Section 2.1(d), immediately discontinue
disposition of the Registrable Shares pursuant to the registration statement
covering such shares until the Sellers' receipt of the copies of the
supplemented or amended prospectus contemplated by Section 2.1(d), and, if so
directed by Chordiant, deliver to Chordiant all copies of the prospectus
covering such Registrable Shares in such Seller's possession at the time of
receipt of such notice.

          (c)  Not offer, nor permit any person or entity acting on any Seller's
behalf (other than an underwriter selected by Chordiant or approved by
Chordiant) to offer, any Registrable Shares by means of any preliminary
prospectus.

     3.2  Rule 144. The Sellers desiring to sell Registrable Shares in
accordance with Rule 144 shall provide such Rule 144 representation letters in
usual and customary form and other usual customary documents as may reasonably
be requested by Chordiant.

SECTION 4.  Limitations

     4.1  Other Transactions.  Chordiant shall not be obligated to effect a
registration pursuant to Section 1, or to file any amendment or supplement
thereto, and may suspend the Sellers' rights to make sales pursuant to an
effective registration pursuant to Section 1, at any time when Chordiant, in the
good faith judgment of its Board of Directors, reasonably believes that the
filing thereof at the time requested, or the offering of securities pursuant
thereto, would materially and adversely affect a pending or proposed
acquisition, merger, recapitalization, consolidation, reorganization or similar
transaction, or negotiations, discussions or pending proposals related thereto,
in which event  Chordiant's sole relief from its registration obligations is the
right to defer filing of a registration statement (or to suspend the Sellers'
rights to make sales pursuant to an effective registration pursuant to Section
1) for a period of not more than 60 days; provided, however, that Chordiant
shall not utilize the right described in this Section 4.1 more than twice in any
12-month period.

     4.2  Underwriting; Market Limitation.  If the managing underwriter advises
Chordiant in writing that market factors require a limitation of the number of
shares to be underwritten (including shares held by Rights Holders), then
Chordiant shall so advise all holders of Registrable Shares and the number of
shares of Registrable Shares that may be included in the registration and
underwriting (after

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

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including all shares requested by Rights Holders to be so registered) shall be
allocated among all Sellers (except those Sellers who have indicated to
Chordiant their decision not to distribute any of their Registrable Shares
through such underwriting) in proportion, as nearly as practicable, to the
respective amounts of Registrable Shares held by such Seller at the time of
filing the registration statement. No Registrable Shares excluded from the
underwriting by reason of the underwriter's market limitation shall be included
in such registration. To facilitate the allocation of shares in accordance with
the above provisions, Chordiant or the underwriters may round the number of
shares allocated to any Seller to the nearest one-hundred (100) shares. If any
Seller wishing to sell Registrable Shares disapproves of the terms of the
underwriting, such person may elect to withdraw therefrom by written notice to
Chordiant and the managing underwriter.

     4.3  Original Registration Rights Agreement.  Notwithstanding any other
provision of this Agreement, if the inclusion of any Registrable Shares pursuant
to a request made under paragraph 1.2(b) above would adversely affect the rights
of any Rights Holder under the Original Registration Rights Agreement or result
in a violation or breach of the Original Registration Rights Agreement by
Chordiant, Chordiant shall limit the number of Registrable Shares to be included
in the registration accordingly (pro rata among the Sellers requesting
registration hereunder) so as to comply, at all times, with the provisions of
the Original Registration Rights Agreement

     4.4  Delay of Registration. No Seller shall have any right to obtain or
seek an injunction restraining or otherwise delaying any such registration as a
result of any controversy that might arise with respect to the interpretation or
implementation of this Section 4.

SECTION 5.  Expenses and Indemnification

     5.1  Certain Fees and Commissions.  Chordiant shall pay its own legal and
accounting fees and all printing fees in connection with a registration
statement filed pursuant to Section 1.  Chordiant shall reimburse the Sellers up
to a total of $10,000 for reasonable legal fees and costs incurred by the
Sellers in connection with the preparation and filing of such registration
statement.  The Sellers shall pay any additional fees and costs of their own
counsel and (except to the extent customarily borne by the underwriters and
brokers) all underwriting discounts, commissions and expenses of underwriters or
brokers incurred in connection with the offering and sale of the Registrable
Shares.

     5.2  Other Expenses.  Chordiant shall pay all registration and filing fees
attributable to the Registrable Shares and the listing fee payable to the Nasdaq
National Market.

     5.3  Indemnification. In the event any Registrable Shares are included in a
registration statement under Section 1:

          (a)  Indemnification by Chordiant. To the extent permitted by law,
Chordiant will indemnify and hold harmless each Seller, such Seller's heirs,
successors and assigns, any underwriter (as defined in the 1933 Act) for such
Seller (if selected by Chordiant or approved by Chordiant), and each person, if
any, who controls such Seller or underwriter within the meaning of the 1933 Act
or the 1934 Act, against any losses, claims, damages, liabilities or actions to
which they may become subject under the 1933 Act, the 1934 Act or other federal
or state law, arising out of or based upon any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus (not prohibited by Section 3.1(c)) or final
prospectus contained therein or any amendments or supplements thereto, or
arising out of or based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

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statements therein, in the context in which made, not misleading; and Chordiant
will reimburse each such Seller, such Seller's heirs, successors and assigns,
underwriter (if selected by Chordiant or approved by Chordiant) or controlling
person for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability, or
action; provided, however, that the indemnification and other rights provided
for in this Section 5.3(a) shall not apply to any such loss, claim, damage,
liability, or action insofar as it arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, preliminary prospectus or final prospectus or any
amendment or supplement thereto, in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
any Seller. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such Seller, underwriter or
controlling person and shall survive the transfer of the Registrable Shares by
such Seller.

          (b)  Indemnification by Sellers. To the extent permitted by law, each
Seller will severally (but not jointly and pro rata with the other Sellers)
indemnify and hold harmless Chordiant, its successors and assigns, its officers
and directors, any underwriter (as defined in the 1933 Act) with respect to the
Registrable Shares, and each person, if any, who controls Chordiant or any such
underwriter within the meaning of the 1933 Act or the 1934 Act, against any
losses, claims, damages, liabilities or actions (joint or several) to which they
may become subject under the 1933 Act, the 1934 Act or other federal or state
law, arising out of or based upon (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement, including
any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, or arising out of or based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the context in which
made, not misleading; provided that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished by such Seller expressly for use
in such registration by such Seller. Each Seller will reimburse Chordiant and
each such officer or director or controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability, or action. Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of Chordiant or any such officer, director, underwriter or controlling
person and shall survive the transfer of the Registrable Shares by such Seller.

          (c)  Indemnification Procedures. Promptly after receipt by a person
who may be entitled to indemnification under this Section 5.3 (an "indemnified
party") of notice of the commencement of any action (including any governmental
action) for which indemnification may be available under this Section 5.3, such
indemnified party will, if a claim in respect thereof is to be made against any
person who must provide indemnification under this Section 5.3 (an "indemnifying
party"), deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate in and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly notified, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an
indemnified party shall have the right to retain its own counsel (and the
reasonable fees of such counsel shall be paid by the indemnifying party) and
assume its own defense if (i) the retention of such counsel has been
specifically authorized in writing by the indemnifying party, (ii) the
indemnifying party has failed to promptly assume the defense and employ
experienced counsel reasonably acceptable to the indemnified party within a
reasonable time after the indemnifying party has received the notice of the
indemnification matter from the indemnified party, or (iii) the named parties to
any such action include

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

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both the indemnified party and the indemnifying party, and the representation of
both parties by the same counsel would be inappropriate due to a conflict of
interest between them. It is understood, however, that the indemnifying party
shall not, in connection with any one such action or separate but substantially
similar or related actions in the same jurisdiction, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys for all
indemnified parties unless the indemnified parties in good faith conclude and
are advised by their counsel that there is an actual or potential conflict of
interest among the indemnified parties. No indemnification provided for in
Section 5.3(a) or Section 5.3(b) shall be available to any party who shall fail
to give notice as provided in this Section 5.3(c) to the extent that the party
to whom notice was not given was unaware of the proceeding to which such notice
would have related and was materially prejudiced by the failure to give such
notice. If the indemnification provided for in this Section 5.3 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with
respect to any losses, claims, damages or liabilities referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other
in connection with the statements, omissions or violations that resulted in such
loss, claim, damage or liability, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission; provided, that in no event shall any contribution by a
Seller hereunder exceed the proceeds from the offering received by such Seller.

SECTION 6.  Other Provisions

     6.1  Notices. Any notice or other communication required or permitted to be
delivered to any party under this Agreement shall be in writing and shall be
deemed properly delivered, given and received when delivered in the manner and
to the address or facsimile telephone number set forth in Section 5.3 of the
Purchase Agreement (or to such other address or facsimile telephone number as
such party shall have specified in a written notice given to the other parties
hereto).

     6.2  Headings. The bold-faced headings contained in this Agreement are for
convenience of reference only, shall not be deemed to be a part of this
Agreement and shall not be referred to in connection with the construction or
interpretation of this Agreement.

     6.3  Counterparts. This Agreement may be executed in several counterparts,
each of which shall constitute an original and all of which, when taken
together, shall constitute one agreement.

     6.4  Governing Law. This Agreement shall be construed in accordance with,
and governed in all respects by, the internal laws of the State of California
(without giving effect to principles of conflicts of laws).

     6.5  Successors and Assigns. This Agreement shall be binding upon each of
the parties hereto and each of their respective permitted successors and
assigns, if any. A Seller may assign such Seller's rights under this Agreement:
(i) if the transferee or assignee of such securities was a Seller hereunder
prior to such transfer, (ii) if such Seller transfers all, but not less than
all, of its Registrable Shares to such transferee, (iii) upon the death of a
Seller, to the person(s) who receive such Seller's

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

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Chordiant Common Stock under the laws of descent and distribution, (iv) to any
organization qualified under Section 501(c)(3) of the Internal Revenue Code to
which such Seller transfers Registrable Shares; or (v) prior to, but not after,
the filing of a registration statement, any Seller that is a limited liability
company or a partnership may assign such Seller's rights under this Agreement to
its members or partners. Nothing in this Agreement is intended to confer, or
shall be deemed to confer, any rights or remedies upon any person or entity
other than the parties hereto and their permitted successors and assigns. This
Agreement shall inure to the benefit of the Sellers, Chordiant, and the
respective successors and assigns, if any, of the foregoing.

     6.6  Waiver.  No failure on the part of any Person to exercise any power,
right, privilege or remedy under this Agreement, and no delay on the part of any
Person in exercising any power, right, privilege or remedy under this Agreement,
shall operate as a waiver of such power, right, privilege or remedy; and no
single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right,
privilege or remedy. No Person shall be deemed to have waived any claim arising
out of this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is
expressly set forth in a written instrument duly executed and delivered on
behalf of such Person; and any such waiver shall not be applicable or have any
effect except in the specific instance in which it is given.

     6.7  Severability.  In the event that any provision of this Agreement, or
the application of any such provision to any Person or set of circumstances,
shall be determined to be invalid, unlawful, void or unenforceable to any
extent, the remainder of this Agreement, and the application of such provision
to Persons or circumstances other than those as to which it is determined to be
invalid, unlawful, void or unenforceable, shall not be impaired or otherwise
affected and shall continue to be valid and enforceable to the fullest extent
permitted by law.

     6.8  Entire Agreement.  This Agreement and the other agreements referred to
herein set forth the entire understanding of the parties hereto relating to the
subject matter hereof and thereof and supersede all prior agreements and
understandings among or between any of the parties relating to the subject
matter hereof and thereof.

     6.9  Waiver of Jury Trial.  Each of the parties hereto hereby irrevocably
waives any and all right to trial by jury in any Legal Proceeding arising out of
or related to this Agreement or the transactions contemplated hereby.

     6.10  Construction.

           (a)  For purposes of this Agreement, whenever the context requires:
the singular number shall include the plural, and vice versa; the masculine
gender shall include the feminine and neuter genders; the feminine gender shall
include the masculine and neuter genders; and the neuter gender shall include
the masculine and feminine genders.

           (b)  The parties hereto agree that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not
be applied in the construction or interpretation of this Agreement.

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

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           (c)  As used in this Agreement, the words "include" and "including"
and variations thereof, shall not be deemed to be terms of limitation, but
rather shall be deemed to be followed by the words "without limitation."

     6.11  Further Assurances.  Each party agrees to cooperate fully with the
other parties and to execute such further instruments, documents and agreements
and to give such further written assurances, as may be reasonably requested by
any other party to better evidence and reflect the transactions described herein
and contemplated hereby, and to effect the intents and purposes of this
Agreement.

     6.12  Amendments.  This Agreement may not be amended, modified, altered or
supplemented other than by means of a written instrument duly executed and
delivered on behalf of Chordiant and James D. St. Jean (as Sellers' Agent (as
defined in the Purchase Agreement), acting on behalf of and for all of the
Sellers).

                  [Remainder of Page Intentionally Left Blank]

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

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IN WITNESS WHEREOF, the parties hereto have executed this SUBORDINATED
REGISTRATION RIGHTS Agreement with the intent and agreement that the same shall
be effective as of the day and year first above written.

Chordiant:                               Chordiant Software, Inc.

                                         By:  /s/ Steven R. Springsteel
                                              ------------------------------
                                              Name/Title: Executive VP/CFO

Sellers:                                      /s/ James D. St. Jean
                                              ------------------------------
                                              James D. St. Jean

                                              /s/ Timothy Flanders
                                              ------------------------------
                                              Timothy Flanders

                                              /s/ Amy Rohe
                                              ------------------------------
                                              Amy Rohe

                                              /s/ Cynthia M. St. Jean
                                              ------------------------------
                                              Cynthia M. St. Jean

                                              /s/ James W. St. Jean
                                              ------------------------------
                                              James W. St. Jean

                                              /s/ Joan M. St. Jean
                                              ------------------------------
                                              Joan M. St. Jean

                                              /s/ R. Douglas Marshall
                                              ------------------------------
                                              R. Douglas Marshall

                                              /s/ Margaret R. Marshall
                                              ------------------------------
                                              Margaret R. Marshall

                                              /s/ Robert Desrochers
                                              ------------------------------
                                              Robert Desrochers

                                              /s/ Laura A. Desrochers
                                              ------------------------------
                                              Laura Desrochers

                                              /s/ John C. Flanders
                                              ------------------------------
                                              John C. Flanders

                                              /s/ Ronald Rohe
                                              ------------------------------
                                              Ronald Rohe

                                              /s/ Marc Gilman
                                              ------------------------------
                                              Marc S. Gilman

                  SUBORDINATED REGISTRATION RIGHTS AGREEMENT

                                       10<PAGE>

                                                                   Exhibit 10.11

October 2, 2000

Mr. Stephen Kelly
Two Oaks
36 Esher Park Avenue
Esher
Surrey KT10 9NX.
United Kingdom.

Dear Stephen:

Chordiant Software, Inc. (the "Company" or "Chordiant") is pleased to offer you
the position of President and Chief Operating Officer reporting directly to me.
The terms of this offer are described below:

1.  As President and COO of Chordiant, you will perform the duties customarily
    associated with this position, and such duties as may be assigned to you by
    me. It is agreed that your duties will include working in the U.S.A and the
    rest of the world. Your start date will be October 1, 2000.

  Your initial base salary will be $300,000 per year, less standard deductions
  and withholdings, paid semi-monthly.  You will be eligible for quarterly MBO
  bonuses up to $50,000 per quarter based upon the Company's determination that
  you have achieved certain mutually-agreeable objectives.  You will also be
  eligible for a bonus of up to 20% of your salary, to be paid at the end of the
  2001 calendar year, at the discretion of the Board based upon your achievement
  of annualized objectives to be established by the Board for your position.  As
  with all executives, receipt of MBO bonuses and year-end bonuses will be
  subject to the achievement of our annual financial plan and both Company and
  individual management objectives.  The standard deductions and withholdings
  will be applied to so much of your duties, which will be carried out in the
  USA.  With regards to your salary, MBO bonuses, bonus and stock options
  attributable to the duties performed outside the USA, no US standard
  deductions and withholdings will be applied and all such amounts will be paid
  to you Gross.  You will personally be responsible to pay any US or non US
  taxes arising on your Non-US element of total compensation.

2.  Upon approval by the Board, the Company will grant you an option to purchase
    800,000 shares of the Company's common stock (the "Stock Option"). Provided
    that you remain employed by the Company, the Stock Option will vest each
    month at the rate of 1/36 of the shares subject to this Stock Option.

    In the event of: (a) a sale of substantially all of the assets of the
    Company, (b) a merger or consolidation in which the Company is not the
    surviving corporation, or (c) the transfer of more than 50% of the voting
    interests of the Company (a "Change in Control"), during the first thirty-
    six (36) months of your employment as President and COO, then you will
    immediately vest in 50% of the then unvested shares subject to your Stock
    Option set forth in this paragraph 3.

    Your Stock Option shall be consistent with the terms and conditions
    contained in the applicable stock option plan documents and stock option
    agreement between you and the Company. From time to time, the Board reviews
    the outstanding option grants for senior Company executives and may issue
    additional options in the future at its sole discretion.

3.  The Company will reimburse you for reasonable documented business expenses
    pursuant to Company policy. In addition to your salary and incentive
    compensation, you will be eligible for standard Company benefits, including
    paid vacation and medical and dental coverage. You will also receive the
    following non-standard benefits: a life insurance policy in the amount of
    $500,000 with the premiums to be paid by the Company; reimbursement for tax
    services up to $5,000 per year; reimbursement for four round-trip flights
    from California to the United Kingdom per year for you and your wife,
    children and nanny; reimbursement for your nanny expenses up to $30,000 per
    year; and reimbursement for your home rental expense in the Bay Area in an
    amount not to exceed $4,000 per month. The Company reserves the right to
    modify your compensation and benefits from time to time, as it deems
    necessary.
<PAGE>

4.  You will be expected to abide by all of the Company's policies and
    procedures. As a further condition of your employment, you agree to refrain
    from any unauthorized use or disclosure of the Company's proprietary or
    confidential information or materials. You also agree to continue to comply
    with your Proprietary Information and Inventions Agreement (attached). By
    accepting this offer, you are representing that you are not a party to any
    agreement or subject to any restrictions (e.g., a non-compete) with any
    third party or prior employer that would conflict with or inhibit your
    performance of your duties with Chordiant.

5.  Either you or the Company may terminate your employment relationship at any
    time with or without cause or advance notice. If the Company terminates your
    employment without cause at any time, then: (a) the Company will make
    severance payments to you in the form of continuation of your base salary in
    effect on the termination date for 12 months following the termination date,
    payable on the Company's ordinary payroll dates, subject to standard payroll
    deductions and withholdings; (b) if you elect continued coverage under
    COBRA, the Company will pay your COBRA premiums for up to 12 months,
    provided, however, that the Company's obligation to make these payments will
    cease immediately if you become eligible for other health insurance benefits
    at the expense of a new employer; and (c) the vesting of your Stock Option
    will be accelerated so that you will immediately vest in 50% of the then
    unvested shares subject to your Stock Option set forth in paragraph 3
    herein. As a condition to your right to receive any of the payments or
    benefits provided above, you agree that you shall provide the Company with a
    full release and waiver of any claims or rights against the Company or
    related parties in a form acceptable to the Company.

6.  If you resign or your employment is terminated for cause, all compensation
    and benefits will cease immediately, and you will receive none of the items
    listed under paragraph 6 above. For purposes of this letter agreement,
    "cause" means: (a) conviction of any felony or a crime involving moral
    turpitude or dishonesty; (b) participation in a fraud or act of dishonesty
    against the Company; (c) willful breach of the Company's policies; (d)
    intentional damage to the Company's property; (e) material breach of this
    Agreement or your Proprietary Information and Inventions Agreement; or (f)
    conduct by you that, in the good faith and reasonable determination of the
    Board, demonstrates gross unfitness to serve. Physical or mental disability
    will not constitute cause.

7.  This letter constitutes the complete, final and exclusive embodiment of the
    entire agreement between you and Chordiant with respect to the terms and
    conditions of your employment. In entering into this agreement, neither
    party is relying upon any promise or representation, written or oral, other
    than those expressly contained herein, and this Agreement supersedes any
    other such promises, representations or agreements. It may not be amended or
    modified except in a written agreement signed by you and a duly authorized
    Company officer. As required by law, this offer of employment is subject to
    proof of your right to work in the United States.

If you choose to accept our offer as described above, please sign below and
return this letter to me.

I am enthusiastic about the prospect of your leading the Chordiant team, and
look forward to working with you to build an outstanding Company.

                              Very truly yours,

                              By:  /s/ Sam Spadafora
                                   -----------------
                                   Sam Spadafora
                                   Chairman and CEO

Attachment A - Proprietary Information and Inventions Agreement
<PAGE>

Agreed and Accepted:

By:  /s/ Stephen Kelly
     -----------------
         Stephen Kelly

Date:  January 5, 2001
       ---------------

ATTACHMENT A

                            CHORDIANT SOFTWARE, INC.
                        EMPLOYEE PROPRIETARY INFORMATION
                            AND INVENTIONS AGREEMENT

In consideration of my employment or continued employment by CHORDIANT SOFTWARE,
INC. (the "Company"), and the compensation now and hereafter paid to me, I
hereby agree as follows:

1.   NONDISCLOSURE

     1.1 Recognition of Company's Rights; Nondisclosure. At all times during my
employment and thereafter, I will hold in strictest confidence and will not
disclose, use, lecture upon or publish any of the Company's Proprietary
Information (defined below), except as such disclosure, use or publication may
be required in connection with my work for the Company, or unless an officer of
the Company expressly authorizes such in writing. I will obtain Company's
written approval before publishing or submitting for publication any material
(written, verbal, or otherwise) that relates to my work at Company and/or
incorporates any Proprietary Information. I hereby assign to the Company any
rights I may have or acquire in such Proprietary Information and recognize that
all Proprietary Information shall be the sole property of the Company and its
assigns.

     1.2 Proprietary Information. The term "Proprietary Information" shall mean
any and all confidential and/or proprietary knowledge, data or information of
the Company. By way of illustration but not limitation, "Proprietary
Information" includes (a) trade secrets, inventions, mask works, ideas,
processes, formulas, source and object codes, data, programs, other works of
authorship, know-how, improvements, discoveries, developments, designs and
techniques (hereinafter collectively referred to as "Inventions"); and (b)
information regarding plans for research, development, new products, marketing
and selling, business plans, budgets and unpublished financial statements,
licenses, prices and costs, suppliers and customers; and (c) information
regarding the skills and compensation of other employees of the Company.
Notwithstanding the foregoing, it is understood that, at all such times, I am
free to use information which is generally known in the trade or industry, which
is not gained as result of a breach of this Agreement, and my own, skill,
knowledge, know-how and experience to whatever extent and in whichever way I
wish.

     1.3 Third Party Information. I understand, in addition, that the Company
has received and in the future will receive from third parties confidential or
proprietary information ("Third Party Information") subject to a duty on the
Company's part to maintain the confidentiality of such information and to use it
only for certain limited purposes. During the term of my employment and
thereafter, I will hold Third Party Information in the strictest confidence and
will not disclose to anyone (other than Company personnel who need to know such
information in connection with their work for the Company) or use, except in
connection with my work for the Company, Third Party Information unless
expressly authorized by an officer of the Company in writing.

     1.4 No Improper Use of Information of Prior Employers and Others. During my
employment by the Company I will not improperly use or disclose any confidential
information or trade secrets, if any, of any former employer or any other person
to whom I have an obligation of confidentiality, and I will not bring onto the
premises of the Company any unpublished documents or any property belonging to
any former employer or any other person to whom I have an obligation of
confidentiality unless consented to in writing by that former employer or
person. I will use in the performance of my duties only information which is
generally known and used by persons with training and experience comparable to
my own, which is common knowledge in the industry or otherwise legally in the
public domain, or which is otherwise provided or developed by the Company.
<PAGE>

2.   ASSIGNMENT OF INVENTIONS.

     2.1 Proprietary Rights. The term "Proprietary Rights" shall mean all trade
secret, patent, copyright, mask work and other intellectual property rights
throughout the world.

     2.2 Prior Inventions. Inventions, if any, patented or unpatented, which I
made prior to the commencement of my employment with the Company are excluded
from the scope of this Agreement. To preclude any possible uncertainty, I have
set forth on Exhibit B (Previous Inventions) attached hereto a complete list of
all Inventions that I have, alone or jointly with others, conceived, developed
or reduced to practice or caused to be conceived, developed or reduced to
practice prior to the commencement of my employment with the Company, that I
consider to be my property or the property of third parties and that I wish to
have excluded from the scope of this Agreement (collectively referred to as
"Prior Inventions"). If disclosure of any such Prior Invention would cause me to
violate any prior confidentiality agreement, I understand that I am not to list
such Prior Inventions in Exhibit B but am only to disclose a cursory name for
each such invention, a listing of the party(ies) to whom it belongs and the fact
that full disclosure as to such inventions has not been made for that reason. A
space is provided on Exhibit B for such purpose. If no such disclosure is
attached, I represent that there are no Prior Inventions. If, in the course of
my employment with the Company, I incorporate a Prior Invention into a Company
product, process or machine, the Company is hereby granted and shall have a
nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with
rights to sublicense through multiple tiers of sublicensees) to make, have made,
modify, use and sell such Prior Invention. Notwithstanding the foregoing, I
agree that I will not incorporate, or permit to be incorporated, Prior
Inventions in any Company Inventions without the Company's prior written
consent.

     2.3 Assignment of Inventions. Subject to Sections 2.4, and 2.6, I hereby
assign and agree to assign in the future (when any such Inventions or
Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all my right, title and interest in and to
any and all Inventions (and all Proprietary Rights with respect thereto) whether
or not patentable or registrable under copyright or similar statutes, made or
conceived or reduced to practice or learned by me, either alone or jointly with
others, during the period of my employment with the Company. Inventions assigned
to the Company, or to a third party as directed by the Company pursuant to this
Section 2, are hereinafter referred to as "Company Inventions."

     2.4 Nonassignable Inventions. This Agreement does not apply to an Invention
which qualifies fully as a nonassignable Invention under Section 2870 of the
California Labor Code (hereinafter "Section 2870"). I have reviewed the
notification on Exhibit A (Limited Exclusion Notification) and agree that my
signature acknowledges receipt of the notification.

     2.5 Obligation to Keep Company Informed. During the period of my employment
and for six (6) months after termination of my employment with the Company, I
will promptly disclose to the Company fully and in writing all Inventions
authored, conceived or reduced to practice by me, either alone or jointly with
others. In addition, I will promptly disclose to the Company all patent
applications filed by me or on my behalf within a year after termination of
employment. At the time of each such disclosure, I will advise the Company in
writing of any Inventions that I believe fully qualify for protection under
Section 2870; and I will at that time provide to the Company in writing all
evidence necessary to substantiate that belief. The Company will keep in
confidence and will not use for any purpose or disclose to third parties without
my consent any confidential information disclosed in writing to the Company
pursuant to this Agreement relating to Inventions that qualify fully for
protection under the provisions of Section 2870. I will preserve the
confidentiality of any Invention that does not fully qualify for protection
under Section 2870.

     2.6 Government or Third Party. I also agree to assign all my right, title
and interest in and to any particular Company Invention to a third party,
including without limitation the United States, as directed by the Company.

     2.7 Works for Hire. I acknowledge that all original works of authorship
which are made by me (solely or jointly with others) within the scope of my
employment and which are protectable by copyright are "works made for hire,"
pursuant to United States Copyright Act (17 U.S.C., Section 101).

     2.8 Enforcement of Proprietary Rights. I will assist the Company in every
proper way to obtain, and from time to time enforce, United States and foreign
Proprietary Rights relating to Company Inventions in any and all countries. To
that end I will execute, verify and deliver such documents and perform such
other acts (including appearances as a witness) as the Company may reasonably
request for use in applying for, obtaining, perfecting,
<PAGE>

evidencing, sustaining and enforcing such Proprietary Rights and the assignment
thereof. In addition, I will execute, verify and deliver assignments of such
Proprietary Rights to the Company or its designee. My obligation to assist the
Company with respect to Proprietary Rights relating to such Company Inventions
in any and all countries shall continue beyond the termination of my employment,
but the Company shall compensate me at a reasonable rate after my termination
for the time actually spent by me at the Company's request on such assistance.

     In the event the Company is unable for any reason, after reasonable effort,
to secure my signature on any document needed in connection with the actions
specified in the preceding paragraph, I hereby irrevocably designate and appoint
the Company and its duly authorized officers and agents as my agent and attorney
in fact, which appointment is coupled with an interest, to act for and in my
behalf to execute, verify and file any such documents and to do all other
lawfully permitted acts to further the purposes of the preceding paragraph with
the same legal force and effect as if executed by me. I hereby waive and
quitclaim to the Company any and all claims, of any nature whatsoever, which I
now or may hereafter have for infringement of any Proprietary Rights assigned
hereunder to the Company.

3.   RECORDS. I agree to keep and maintain adequate and current records (in the
form of notes, sketches, drawings and in any other form that may be required by
the Company) of all Proprietary Information developed by me and all Inventions
made by me during the period of my employment at the Company, which records
shall be available to and remain the sole property of the Company at all times.

4.   ADDITIONAL ACTIVITIES. I agree that during the period of my employment by
the Company I will not, without the Company's express written consent, engage in
any employment or business activity which is competitive with, or would
otherwise conflict with, my employment by the Company. I agree further that for
the period of my employment by the Company and for one (l) year after the date
of termination of my employment with the Company I will not induce any employee
of the Company to leave the employ of the Company. I agree further that for the
period of my employment with the Company and for one (1) year after the date of
termination of my employment with the Company, I will not solicit the business
of any client or customer of the Company (other than on behalf of the Company).

5.   NO CONFLICTING OBLIGATION. I represent that my performance of all the terms
of this Agreement and as an employee of the Company does not and will not breach
any agreement to keep in confidence information acquired by me in confidence or
in trust prior to my employment by the Company. I have not entered into, and I
agree I will not enter into, any agreement either written or oral in conflict
herewith.

6.   RETURN OF COMPANY DOCUMENTS. When I leave the employ of the Company, I will
deliver to the Company any and all drawings, notes, memoranda, specifications,
devices, formulas, and documents, together with all copies thereof, and any
other material containing or disclosing any Company Inventions, Third Party
Information or Proprietary Information of the Company. I further agree that any
property situated on the Company's premises and owned by the Company, including
disks and other storage media, filing cabinets or other work areas, is subject
to inspection by Company personnel at any time with or without notice. Prior to
leaving, I will cooperate with the Company in completing and signing the
Company's termination statement.

7.   LEGAL AND EQUITABLE REMEDIES. Because my services are personal and unique
and because I may have access to and become acquainted with the Proprietary
Information of the Company, the Company shall have the right to enforce this
Agreement and any of its provisions by injunction, specific performance or other
equitable relief, without bond and without prejudice to any other rights and
remedies that the Company may have for a breach of this Agreement.

8.   NOTICES. Any notices required or permitted hereunder shall be given to the
appropriate party at the address specified below or at such other address as the
party shall specify in writing. Such notice shall be deemed given upon personal
delivery to the appropriate address or if sent by certified or registered mail,
three (3) days after the date of mailing.

9.   NOTIFICATION OF NEW EMPLOYER. In the event that I leave the employ of the
Company, I hereby consent to the notification of my new employer of my rights
and obligations under this Agreement.

10.  GENERAL PROVISIONS.
<PAGE>

     10.1 Governing Law; Consent to Personal Jurisdiction. This Agreement will
be governed by and construed according to the laws of the State of California,
as such laws are applied to agreements entered into and to be performed entirely
within California between California residents. I hereby expressly consent to
the personal jurisdiction of the state and federal courts located in Santa Clara
County, California for any lawsuit filed there against me by Company arising
from or related to this Agreement.

     10.2 Severability. In case any one or more of the provisions contained in
this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect the other provisions of this Agreement, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein. If moreover, any one or more of the provisions
contained in this Agreement shall for any reason be held to be excessively broad
as to duration, geographical scope, activity or subject, it shall be construed
by limiting and reducing it, so as to be enforceable to the extent compatible
with the applicable law as it shall then appear.

     10.3 Successors and Assigns. This Agreement will be binding upon my heirs,
executors, administrators and other legal representatives and will be for the
benefit of the Company, its successors, and its assigns.

     10.4 Survival. The provisions of this Agreement shall survive the
termination of my employment and the assignment of this Agreement by the Company
to any successor in interest or other assignee.

     10.5 Employment. I agree and understand that nothing in this Agreement
shall confer any right with respect to continuation of employment by the
Company, nor shall it interfere in any way with my right or the Company's right
to terminate my employment at any time, with or without cause.

     10.6 Waiver. No waiver by the Company of any breach of this Agreement shall
be a waiver of any preceding or succeeding breach. No waiver by the Company of
any right under this Agreement shall be construed as a waiver of any other
right. The Company shall not be required to give notice to enforce strict
adherence to all terms of this Agreement.

     10.7 Entire Agreement. The obligations pursuant to Sections 1 and 2 of this
Agreement shall apply to any time during which I was previously employed, or am
in the future employed, by the Company as a consultant if no other agreement
governs nondisclosure and assignment of inventions during such period. This
Agreement is the final, complete and exclusive agreement of the parties with
respect to the subject matter hereof and supersedes and merges all prior
discussions between us. No modification of or amendment to this Agreement, nor
any waiver of any rights under this Agreement, will be effective unless in
writing and signed by the party to be charged. Any subsequent change or changes
in my duties, salary or compensation will not affect the validity or scope of
this Agreement.

     This Agreement shall be effective as of the first day of my employment with
the Company, namely: _______________, 20__.

     I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS. I HAVE
COMPLETELY FILLED OUT EXHIBIT B TO THIS AGREEMENT.

Dated: ___________

_______________________________________
(Signature)

_______________________________________
(Printed Name)

ACCEPTED AND AGREED TO:

CHORDIANT SOFTWARE, INC.
<PAGE>

By: ____________________________________

Title: ___________________________________

_______________________________________
(Address)

_______________________________________

Dated: _______

                                   EXHIBIT A

                         LIMITED EXCLUSION NOTIFICATION

     THIS IS TO NOTIFY you in accordance with Section 2872 of the California
Labor Code that the foregoing Agreement between you and the Company does not
require you to assign or offer to assign to the Company any invention that you
developed entirely on your own time without using the Company's equipment,
supplies, facilities or trade secret information except for those inventions
that either:

     1.  Relate at the time of conception or reduction to practice of the
invention to the Company's business, or actual or demonstrably anticipated
research or development of the Company;

     2.  Result from any work performed by you for the Company.

     To the extent a provision in the foregoing Agreement purports to require
you to assign an invention otherwise excluded from the preceding paragraph, the
provision is against the public policy of this state and is unenforceable.

     This limited exclusion does not apply to any patent or invention covered by
a contract between the Company and the United States or any of its agencies
requiring full title to such patent or invention to be in the United States.

     I ACKNOWLEDGE RECEIPT of a copy of this notification.

                              By:_________________________________
                                    (PRINTED NAME OF EMPLOYEE)

                              Date:_______________________________
WITNESSED BY:

_______________________________________
(PRINTED NAME OF REPRESENTATIVE)

                                   EXHIBIT B

TO:  CHORDIANT SOFTWARE, INC.

FROM:  ________________________

DATE:  ________________________

SUBJECT: Previous Inventions
<PAGE>

1.   Except as listed in Section 2 below, the following is a complete list of
all inventions or improvements relevant to the subject matter of my employment
by CHORDIANT SOFTWARE, INC. (the "Company") that have been made or conceived or
first reduced to practice by me alone or jointly with others prior to my
engagement by the Company:

     [ ]  No inventions or improvements.

     [ ]  See below:

          ______________________________________________________________________

          ______________________________________________________________________

          ______________________________________________________________________

     [ ]  Additional sheets attached.

2.   Due to a prior confidentiality agreement, I cannot complete the disclosure
under Section 1 above with respect to inventions or improvements generally
listed below, the proprietary rights and duty of confidentiality with respect to
which I owe to the following party(ies):

<TABLE>
<CAPTION>
       Invention or Improvement               Party(ies)                    Relationship
<C>            <S>                            <C>                             <C>
     1.  ______________________         ______________________          ______________________
     2.  ______________________         ______________________          ______________________
     3.  ______________________         ______________________          ______________________
</TABLE>
   [ ]    Additional sheets attached.

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