Document:

ex1051.htm

     

            Confidential
      Treatment
      Requested       

    
 

    Exhibit
      10.51

    

    LICENSE
      SCHEDULE

    

    
      	
              License
                Schedule #:

            	
              5

            
	
              Effective
                Date:

            	
              Oct.
                23, 2006

            

    

    

    THIS
      LICENSE SCHEDULE is entered as of the Effective Date designated above,
      by and between Licensor and the Licensee designated below.  The
      Parties hereto acknowledge that they are entering into this License Schedule
      pursuant to the provisions of the Master Software License and Support Agreement
      dated as of February 1, 2006, between Licensor and Citicorp Credit Services,
      Inc. (USA).  The Parties further acknowledge and agree that
      the provisions of the Master Software License and Support Agreement
      (“Agreement”) shall apply to this License Schedule as though such provisions
      were set forth herein in their entirety.

    

    
      	 	
              LICENSOR

            	
              LICENSEE

            
	
              Name:

            	
              Chordiant
                Software, Inc.

            	
              Citicorp
                Credit Services, Inc. (USA)

            
	
              Address:

            	
                20400
                Stevens Creek Blvd.

                Suite
                400

                Cupertino,
                CA 95014

            	
              14000
                Citi Cards Way

              Jacksonville,
                FL 32258

            
	
              State
                of Incorporation:

            	
              Delaware

            	
              Delaware

            

    

    

    
      	
              Software
                (Itemize)

            	
              List
                Price

            	
              Discount
                %

            	
              License
                Fee

            
	
              Perpetual
                License

            	 	 	
              $20,000,000

            
	
              Chordiant
                Order Form #5 attached hereto
                and       incorporated herein by
                reference

            	 	 	 
	
              Source
                Code delivered pursuant to Order Form #5 does not include the third
                party
                source code listed on Appendix A hereto.

            	 	 	 

    

    

    
      	
              Third-Party
                Software  (Itemize)

            	
              Owner

            
	
              IBM
                Websphere

            	
              CCSI
                (USA)

            
	
              Oracle

            	
              CCSI
                (USA)

            

    

    

    
      	
              Delivery
                Site:

            	
              Citicorp
                Credit Services, Inc. (USA)

            	
              Delivery
                Date:

            	
              NA

            
	 	
                                       14000
                Citi Cards Way

                                       Jacksonville,
                FL 32258

            	 	 	 	 	 	 
	
              Billing
                Address

            	
              Citicorp
                Credit Services, Inc. (USA)

            	 	 	 
	 	
              14000
                Citi Cards Way

              Jacksonville,
                FL 32258

            	 	 	 
	
              Installation
                Fees:

            	
              $

            	
              NA

            	 	 	 	 
	 	 	 	 	 
	
              Training
                Fees:

            	
              $

            	
              NA

            	 	 	 	 
	 	 	 	 	 
	
              Development
                Fees:

            	
              $

            	
              NA

            	 	 	 	 
	 	 	 	 	 
	
              Implementation
                Fees:

            	
              $

            	
              NA

            	 	 	 	 
	 	 	 	 	 
	
              Maintenance
                Fees:

            	
              $

            	
              See
                Order Schedule #5

            	
              Payment
                Cycle:

            	
              Annually

            	 
	 	 	 	 
	
              Maintenance
                Term:

            	
              See
                Order Schedule #5

            	 	 	 
	
              CPU
                and/or number of MIPS and MIPS environment:

            	
              Sun
                Solaris

            
	 	 	 	 	 	 	 	 	 	 	 	 
	
              Acceptance
                Test Period:

            	
              NA

            	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
              Warranty
                Period:

            	
              90
                days from the date of delivery of the
                Software

            

    

    

    
      	
              Source
                Code Provided Directly to Licensee:

            	
              Yes       X

            	
              No

            
	 	 	 	 
	
              Deposited
                with Escrow Agent:

            	
              Yes       X

            	
              No

            
	 	 	 	 
	
              Name
                of Escrow Agent:  Iron Mountain Intellectual
                Property            Management,
                Inc.

            	 
	 	 	 	 
	
              Address
                of Escrow Agent:

            	 

    

    

    
      	
              Additional
                Terms and Conditions:

              1.  In
                the case of any conflict between this License Schedule and Chordiant
                Order
                Form #5, the terms of Chordiant Order Form #5 shall
                prevail.  (See additional terms and conditions in Chordiant
                Order Form #5.)

              2.  Notwithstanding
                Section 7.1 of the Agreement, in addition to Delivering Licensee
                the
                Source Code of the Software, Licensor also shall escrow the Software
                as
                indicated above in accordance with Section 7.1 of the
                Agreement.

            	 
	 	 	 
	
              Term:  Perpetual

               

            

    

    Specifications:
      No Additional Specifications

    

    Allowed
      Combinations: Not required

    

    Acceptance
      Criteria: NA

    

    Configuration:
      NA

    

    Disaster
      Recovery Plan: NA

    

    Escrow
      Agreement:

    

    IN
      WITNESS WHEREOF, the Parties hereto, through their duly authorized
      officers, have executed this License Schedule to the Master Software License
      and
      Support Agreement as of the Effective Date designated above.

    

    
      	
              Chordiant
                Software, Inc.:

            	 	
              Citicorp
                Credit Services, Inc. (USA):

            
	 	 	 	 	 
	
              By:

            	
              /s/
                Steven Springsteel

            	 	
              By:

            	
              /s/
                Mark D. Torkos

            
	 	 	 	 	 
	
              Name:

            	
              Steven
                Springsteel

            	 	
              Name:

            	
              Mark
                Torkos

            
	 	 	 	 	 
	
              Title:

            	
              President
                & CEO

            	 	
              Title:

            	
              CIO

            
	 	
              (type
                or print)

            	 	 	 

    

    Date:      __12/7/06____________________         Date:      _____________12/8/06_______

    

    
      
        
                

                              [
              * ]
           = 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.
              
      

                    
      
    

           

        

        
           

          
            

          

        

        
           

                

                    Confidential
              Treatment Requested      
    

        

      

    

    

    

    
      	
              Chordiant
                Software, Inc.:

            	 
	 	 	 
	
              By:

            	
              /s/
                Peter Norman

            	 
	 	 	 
	
              Name:

            	
              Peter
                Norman

            	 
	 	 	 
	
              Title:

            	
              CFO

            	 
	 	
              (type
                or print)

            	 

    

    Date:      _________12/7/06_________________

    

    
      
        
                

                              [
              * ]
           = 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.
              
      

                    
      
    

           

        

        
           

          
            

          

        

        
           

                

                    Confidential
              Treatment Requested      
    

        

      

    

    

    Appendix
      A – Undelivered Third Party Source Code

    

    [*
      7 pages of tabular text omitted]

    

    
      
        
                

                              [
              * ]
           = 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.
              
      

                    
      
    

           

        

        
           

          
            

          

        

        
           

                

                    Confidential
              Treatment Requested      
    

        

      

    

    

    

     

    Order
      Form No. 5

     

     

    Contract
      Information

     

     

    Customer
      Name:                                           Citicorp
      Credit Services, Inc. (USA) (“CCSI (USA)”)

     

     

    Purchase
      Order Number:

     

     

    Customer
      Location:                                                      [
* ]

     

     

    Customer
      Telephone
      Number:                                                                [
      * ]

     

     

    Designated
      Support
      Contact:                                                      [
      * ]

     

     

    Contact’s
      E-Mail
      Address:                                                      [
      * ]

     

    
      

       

      Agreement
        Name and Date:Master Software License and Support Agreement dated February
        1,
        2006 by and between Citicorp Credit Services, Inc. (USA) and Chordiant Software,
        Inc. (“Agreement”)

       

      

    

    
      This
        Order Form (“Order Form”) is placed in accordance with and shall be governed by
        the terms of the Agreement specified above.  Customer hereby orders
        the Software licenses for use as follows:

    

    

    A:  SOFTWARE
      LICENSE

    

    Designated
      Center:

    

    Hardware:                                           Sun
      Microsystems

    Operating
      System:                                                      Sun
      Solaris

    Relationship
      Database:                                                                Oracle

    Customer
      Application:                                                      Citicorp
      Credit Services, Inc. (USA) (“CCSI (USA)”)

    Application
      Server:                                                      IBM
      Websphere

    Channel
      Usage:                                                      North
      American Contact-Center, Internet, Portal, ATM, IVR

    Branch.

    

    

    
      
        
                

                              [
              * ]
           = 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.
              
      

                    
      
    

           

        

        
           

          
            

          

        

        
           

                

                    Confidential
              Treatment Requested      
    

        

      

    

    

    

    1.
      Server Environment

    

    
      	
              Software
                Product(s)

            	
              Qty

            	
              License
                Type (i.e. Named User/Client, Server, Developer)

              URN’s
                (no. of)

            
	
              ·  Chordiant
                5 Foundation Server:

              Application
                Components

              Business
                Process Server

              Security
                Server

              Persistence
                Server

              Foundation
                Server

              JDBC
                Connector for Oracle

              CTI
                Server

              CAFÉ
                Server

              Connector
                to MQ

            	
              CCSI
                (USA) Enterprise

              Source
                Code*

            	
              CPU

            
	
              ·  Chordiant
                5 Development Tools:

              Tools
                Platform

              Process
                Developer

              CAFÉ
                Development Environment

            	
              CCSI
                (USA) Enterprise

            	
              Developers

            
	
              Recommendation
                Advisor

            	
              CCSI(USA)

              Enterprise

              Source
                Code*

            	
              A.  Concurrent
                Users

            
	
              Chordiant
                5 Lead Management module

            	
              CCSI(USA)

              Enterprise

              Source
                Code*

            	
              Module

            
	
              Chordiant
                5 Basel II

            	
              CCSI(USA)

              Enterprise

              Source
                Code*

            	
              Module

            
	
              Fraud
                Recoveries

            	
              CCSI
                (USA)

              Enterprise

              Source
                Code*

            	
              Module

            
	
              Chargeback
                & Disputes

            	
              CCSI
                (USA) Enterprise

              Source
                Code*

            	
              Module

               

            
	
              License
                Fee

            	 	
              [
                * ]

            

    

    

    

    
      
        
                

                              [
              * ]
           = 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.
              
      

                    
      
    

           

        

        
           

          
            

          

        

        
           

                

                    Confidential
              Treatment Requested      
    

        

      

    

    

    2.
      Decision/Marketing Environment

    

    
      	
              Software
                Product(s)

            	
              Quantity

            	
              License
                Type (i.e. User/Client, Server, Developer), URN’s (no.
                of)

            
	
              Chordiant
                Marketing Director

            	
              CCSI
                (USA)  Enterprise

              Source
                Code*

            	
              URN

            
	
              On-line
                Marketing Director

            	
              CCSI
                (USA)  Enterprise

              Source
                Code*

            	
              URN

            
	
              Predictive
                Analytics Director

            	
              CCSI
                (USA)  Enterprise

              Source
                Code*

            	
              Developers

            
	
              Strategy
                Director

            	
              CCSI
                (USA)  Enterprise

              Source
                Code*

            	
              Developers

            
	
              Real-Time
                Decision Server

            	
              CCSI
                (USA) Enterprise

              Source
                Code*

            	
              URN

            
	
              Database
                Decision Server

            	
              CCSI
                (USA) Enterprise

              Source
                Code*

            	
              URN

            
	
              Decision
                Monitor

            	
              CCSI
                (USA)  Enterprise

              Source
                Code*

            	
              Developers

            
	
              Decision
                Monitor Universe

            	
              CCSI
                (USA)

              Enterprise

              Source
                Code*

            	
              URN

            
	
              Data
                Preparation Director

            	
              CCSI
                (USA) Enterprise

              Source
                Code*

            	
              Developers

            
	
              Interaction
                Services

            	
              CCSI
                (USA)

              Enterprise

              Source
                Code*

            	
              URN

            
	
              Adaptive
                Decisioning Services

            	
              CCSI
                (USA)

              Enterprise

              Source
                Code*

            	
              URN

            
	
              License
                Fee

            	 	
              [
                * ]

            

    

    

    

    
      
        
                

                              [
              * ]
           = 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.
              
      

                    
      
    

           

        

        
           

          
            

          

        

        
           

                

                    Confidential
              Treatment Requested      
    

        

      

    

    

    

    3.
      Reporting Environment

    

    
      	
              Software
                Product(s)

            	
              Quantity

            	
              License
                Type  URN’s (no. of)

            	
              License
                Fee

            
	
              Chordiant
                OneReporting Report Library (assets only) ***

            	
              CCSI
                (USA)
                Enterprise

            	
              CPU

            	
              [
                * ]

            
	 	 	 	 
	
              License
                Fee

            	 	 	
              [
                * ]

            

    

    

    4.
      Rules Environment

    

    
      	
              Software
                Product(s)

            	
              Quantity

            	
              License
                Type (i.e. User/Client, Server, Developer), URN’s (no.
                of)

            	
              License
                Fee

            
	
              Rules
                Server

            	
              CCSI
                (USA)
                Enterprise

            	
              CPU

            	
              [
                * ]

            
	
              Rules
                Designer

            	
              [
                * ]

            	
              Developers

            	
              [
                * ]

            
	 	 	 	 
	
              License
                Fee

            	 	 	
              [
                * ]

            

    

    

    5.
      Desktop Environment

    

    
      	
              Software
                Product(s)

            	
              Quantity

            	
              License
                Type (i.e. User/Client, Server, Developer), URN’s (no.
                of)

            	
              License
                Fee

            
	
              Chordiant
                5 Call Center Advisor Browser Edition

            	
              1000

              Source
                Code*

            	
              Concurrent
                Users

            	
              [
                * ]

            
	
              Chordiant
                5 Teller

               

            	
              100

              Source

              Code*

            	
              Concurrent
                Users

            	
              [
                * ]

            
	
              License
                Fee

            	 	 	
              [
                * ]

            

    

    

    6.
      Collections

    

    
      	
              Software
                Product(s)

            	
              Quantity

            	
              License
                Type (i.e. User/Client, Server, Developer), URN’s (no.
                of)

            	
              License
                Fee

            
	
              Chordiant
                Collections v1.0**

            	
              CCSI
                (USA)
                Enterprise

              Source
                Code*

            	
              CPU

            	
              $1,200,000

            
	
              License
                Fee

            	 	 	
              $1,200,000

            

    

    

    7.
      Financial Environment (Retail Banking)

    

    
      	
              Software
                Product(s)

            	
              Quantity

            	
              License
                Type (i.e. User/Client, Server, Developer), URN’s (no.
                of)

            	
              License
                Fee

            
	
              Chordiant
                5 Lending (to include lending and mortgage
                assets/templates)***

               

            	
              CCSI(USA)

              Enterprise

              Source
                Code*

            	
              Module

            	
              [
                * ]

            
	
              Chordiant
                5 Financial Services

            	
              CCSI(USA)

              Enterprise

              Source
                Code*

            	
              4
                CPU

            	
              [
                * ]

            
	
              License
                Fee

            	 	 	
              [
                * ]

            

    

    

    
      	
              *
                Excludes source code of Third Party Software itemized on the License
                Schedule No.5.

            

    

    
      	
              **
                Generally available (GA) delivery of the Chordiant Collections 1.0
                software product with the product specifications described on Exhibit
                A
                hereto is anticipated to occur in the second calendar quarter of
                2007.

            

    

    
      	
              ***
                This license is limited to the software product initially delivered
                and is
                not supported.

            

    

    

    7.  Total
      License Fees (subject to Section 9.5 of the Agreement, due and payable upon
      execution of the Order Form):$20,000,000

     

    8.  Additional
      Licenses. CCSI (USA) may purchase additional licenses for the Software
      Products listed below at the respective quantities and license fee
      indicated.

    

    CCSI
      (USA)’s Purchase table valid until September 2012

    

    
      	
              Software
                Product(s)

            	
              Quantity

            	
              License
                Type (i.e. User/Client, Server, Developer), URN’s (no.
                of)

            	
              License
                Fee

            
	
              Chordiant
                5 Call Center Advisor Browser Edition

            	
              500

            	
              Concurrent
                Users

            	
              $325,000

            
	
              Chordiant
                5 Teller

            	
              100

            	
              Concurrent
                User

            	
              $30,000

            

    

    

    

    Subject
      to the note below, CCSI (USA) agrees that if it deploys any software which
      is a
      functional substitute for Chordiant 5 Call Center Advisor Browser Edition or
      Chordiant 5 Teller then CCSI (USA) will pay Chordiant the same license fees
      for
      such functional substitute as would have been applicable to a corresponding
      deployment of Chordiant 5 Call Center Advisor Browser Edition or Chordiant
      5
      Teller and the users of such functional substitute shall be considered
      Concurrent Users (as such term is defined below).

    

    For
      purposes of this Order Form, the term “functional substitute” shall be defined
      as being an equivalent product with like functionality and technical maturity
      or, in the case of the Chordiant Call Center Advisor Browser Edition, a product
      which otherwise allows CCSI (USA)’s employees and contractors the ability to
      access the functionality of the Software Products licensed hereunder on an
      Enterprise basis.  In the event that Chordiant 5 Call Center Advisor
      Browser Edition or Chordiant 5 Teller becomes functionally or technically
      obsolete, Chordiant will have 90 days to resolve the deficiency.  If
      Chordiant is unable to do so, CCSI (USA) shall have the option of deploying
      a
      substitute without penalty, without payment to Chordiant and the users of such
      functional substitute shall not be considered concurrent users.

    

    Note:
      If the total license fees paid by CCSI (USA) or its affiliates (under this
      Order
      Form #5 and any subsequent Order Form under the Agreement entered into after
      the
      date of execution of this Order Form #5) equal or exceed $50,000,000 at any
      time
      before the end of the year 2012, then the Chordiant 5 Call Center Advisor
      Browser Edition and Chordiant 5 Teller will be considered enterprise (unlimited
      Concurrent Users) for CCSI (USA). CCSI(USA)’s obligation set forth in the two
      paragraphs immediately above this Note to pay Chordiant license fees for
      CCSI(USA)’s deployment of functional substitutes shall cease to apply when the
      total license fees paid to Chordiant by CCSI(USA) reach
      $50,000,000.

    

    

    B:  ANNUAL
      SUPPORT FEE(S) ON SOFTWARE LICENSE

     

    1.  Annual
      Support Fees for the software license identified in Section A above
      are:

    Premium
      Support

    a.  First
      12 months of Premium Support services shall be provided at no cost.

    

    b.  During
      the second 12 month period, the Premium Support services shall be calculated
      at
      an annual rate equal to $ 240 x Number of Concurrent Users on the Counting
      Date
      (as defined below). Notwithstanding the foregoing, the fee for Premium Support
      services shall not exceed $20,000,000 per annum.

    

    2.  Definitions

    

    The
      Number of Concurrent Users is defined as the maximum number of individuals
      using
      Chordiant 5 Call Center Advisor Browser Edition or Chordiant 5 Teller to access
      a Chordiant 5 server product at any one time.

    

    3.  Reporting

    

    CCSI
      (USA) will inform Chordiant Software Inc. of the peak Number of the Concurrent
      Users on the second Monday in September of each year (the “Counting Date”) not
      more than thirty (30) days after the Counting Date.  For each support
      period, Chordiant will invoice CCSI (USA) following receipt from CCSI (USA)
      of
      the report stating the Number of Concurrent Users on the Counting
      Date.

    

    Not
      more frequently than annually, Chordiant may audit CCSI (USA)’s use of the
      Software.  If an audit reveals, or CCSI (USA) reports to Chordiant,
      that the Number of Concurrent Users in production by CCSI (USA) on the Counting
      Date exceeds the Number of Concurrent Users licensed by CCSI (USA) on the
      Counting Date, then CCSI (USA) shall be invoiced directly for such unpaid
      licenses based on CCSI (USA)’s Purchase table listed above.

    

    4.  Renewal
      of Support: At CCSI (USA)’s option, on the second anniversary of the
      execution of this License Schedule, and on each subsequent anniversary date,
      CCSI (USA) may acquire an additional one year of Premium Support services for
      the Software licensed under this Order Form, for an annual support fee
      calculated as the higher of 4% of the License fees paid or $240 x Number of
      Concurrent Users on the Counting Date.  The Concurrent User support
      fee (initially $240 per user) shall not increase from the previous year’s per
      user Support Fee by more than the lesser of 5% or the actual increase in the
      Consumer Price Index (CPI) for the previous twelve (12) month period as
      published by the Wall Street Journal. Notwithstanding the foregoing, the fee
      for
      Premium Support services shall not exceed $20,000,000 per annum.

    

    C:  MISCELLANEOUS

    
      	
              1.  

            	
              As
                specified on this Order Form, Chordiant shall deliver to the CCSI
                (USA)
                Location, one copy of the Software media and Documentation
                (electronically, or CD-ROM or bound, whichever is generally available
                and
                at CCSI (USA) discretion) (“Master Copy”) for each Software license
                specified above for use at the Designated Center.  CCSI (USA)
                shall have the right to make up to a reasonable number of copies
                of the
                Software, including Documentation, for each License Type of the Software,
                and CCSI (USA) shall be responsible for installation of the
                Software.  All fees due under this Order Form shall be due and
                payable upon the dates set forth in this Order Form, and shall be
                non-cancelable and the sum paid
                non-refundable.

            

    

    
      	
              2.  

            	
              No
                acceptance period shall apply to the Software.  The Software is
                deemed accepted upon delivery.

            

    

    

    

    Chordiant
      Software
      Inc.                                                                                                Citicorp
      Credit Services, Inc. (USA)

    

    
 

    Signature                                                                                                                    
         Signature

    

    Steven
      Springsteel                                                                                      

    Print
      Name                                                                                                            
       Print Name

    

    President
      &
CEO                                                                                               
________________________________________

    Print
      Title                                                                                                                    
  Print Title

    

    
 

     

    Date                                                                                                                             Date           

     

     

    

     

    Chordiant
      Software
      Inc.                                                                                                

    

    
 

    Signature

    

    Peter
      Norman                                                                           

    Print
      Name

    

    CFO                                                                

    Print
      Title

    

    

     

    Date                                                                      

     

    

    
      
        
                

                              [
              * ]
           = 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.
              
      

                    
      
    

           

        

        
           

          
            

          

        

        
           

                

                    Confidential
              Treatment Requested      
    

        

      

    

    

     

    

     

     

    Exhibit
      A

     

     

    Chordiant
      Collections 1.0

     

     

    Product
      Specifications

     

     

    

     

    [
      * 3 pages of text omitted ]

     

    

     

    

    

    
      
        
                

                              [
              * ]
           = 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.ex1060.htm

    

       [
        * ] = 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
        10.60

       

      Chordiant
        Fiscal Year 2008 Executive Incentive Bonus Plan

       

      Executive
        Bonus Plan

      The
        Executive Bonus Plan will cover all Executive Officers and Vice Presidents
        of
        the Company (excepting those paid on sales commission plans).  Bonuses
        under this plan will be calculated and paid (if applicable) quarterly based
        on
        corporate results filed on Forms 10-Q and 10-K versus Chordiant’s established
        FY2008 Financial Plan as compared against four quantitative measures: contract
        value (Bookings), GAAP Revenue, Non-GAAP Operating Profit, Cash Flow (as
        defined
        below) and one discretionary component managed by the Chief Executive Officer.
        Total bonuses paid for the fiscal year under the plan shall not exceed 300%
        of
        the bonus opportunity for any one individual.  Payment and earnings in
        any one quarter will be limited to a maximum of 100% of the participant’s
        targeted bonus for that quarter.  At the end of the fiscal year, the
        Company will calculate performance in total for the plan year and evaluate
        attainment against full plan year goals. Performance in excess of 100% of
        the
        total plan year goal, but no greater than 300% of the total plan year goal
        for
        each element or in aggregate,  will be paid not later than 60 days
        after fiscal year end (or later if audited results are not completed) according
        to the acceleration schedule for each measure.

      

      Plan
        Summary

      

      Quantitative
        Components:

      
        	
                ·  

              	
                Contract
                  Value (Bookings) in $US

              

      

      
        	
                ·  

              	
                GAAP
                  Revenue in $US

              

      

      
        	
                ·  

              	
                Non
                  GAAP Operating Profit in $US

              

      

      
        	
                ·  

              	
                Cash
                  flow Generation in $US

              

      

      Discretionary
        Component:

      
        	
                ·  

              	
                CEO
                  Discretionary

              

      

      

      Plan
        annual maximum payout to individuals – 300%

      

      Payments

      
        	
                ·  

              	
                Quarterly

              

      

      
        	
                ·  

              	
                Limited
                  to 100% maximum payment each
                  quarter

              

      

      
        	
                ·  

              	
                Overachievement
                  paid at end of fiscal year

              

      

      

      Component
        – Contract Value (Bookings)

      Weighting
        – 25%

      

      Total
        Bookings Goal (in $US)

      

      Q1                                  $[
        * ]

      Q2                                  $[
        * ]

      Q3                                  $[
        * ]

      Q4                                  $[
        * ]

      FY2008                                $[
        * ]

      

          Performance*                                                      Payout*

      Thresholds                                           
        80%                                           
50%

      100%                                           100%

      120%                                           200%

      130%                                           300%

      

      

      Component
        – Revenue

      Weighting
        – 25%

      

      Revenue
        Goal (Reported GAAP Revenue in $US)

      

      Q1                                  $[
        * ]

      Q2                                  $[
        * ]

      Q3                                  $[
        * ]

      Q4                                  $[
        * ]

      FY2008                                $[
        * ]

      

      

          Performance*                                        Payout*

      Thresholds                    
        80%                                           
25%

      100%                                           100%

      120%                                           200%

      130%                                           300%

      

      Component
        – Non GAAP Operating Profit

      Weighting
        – 25% for executives other than the CEO and 35% for the
        CEO

      

      (Reported
        Non-GAAP Operating Profit in $US)

      

      Q1                                    $[
        * ]

      Q2                                    $[
        * ]

      Q3                                    $[
        * ]

      Q4                                    $[
        * ]

      FY2008                                  $[
        * ]

      

                                           Performance*                      
           Payout*

      Thresholds                    
        80%                                           
25%

      100%                                           100%

      120%                                           200%

      130%                                           300%

      

      

      

      

      Component
        – Cash Flow

      Weighting
        – 15%

      

      (Periodic
        Change in Reported Cash, Cash Equivalents, Marketable Securities and Restricted
        Cash in $US)

      

      Q1                                    $[
        * ]

      Q2                                    $[
        * ]

      Q3                                    $[
        * ]

      Q4                                    $[
        * ]

      FY2008                                  $[
        * ]

      

      

                                           Performance*                       
            Payout*

      Threshold                      
        80%                                           
25%

      100%                                           100%

      120%                                           200%

      130%                                           300%

      

      

      *Performance
        and payout interpolate between levels

      

      Component
        – CEO Discretionary

      Weighting
        – 10% for executives other than the CEO

      

      This
        component is paid at the sole discretion of the CEO.  Should the
        quantitative metrics specified above justify a bonus payment above 100% for
        the
        quantitative portion of this bonus plan, then the payment under this opportunity
        increases proportionately.

      

      

      Bookings

      

      Contract
        value (“Bookings”) is a basis for measurement under the Executive Bonus
        Plan.  Bookings under this plan will be defined as the booking amount
        measured and represented by the non-cancelable portion of revenue under a
        contract or contracts plus executed statements of work.  The
        cancelable portion of a contract will receive booking credit when the customer
        and/or Chordiant performs tasks specified in the contract or a time limitation
        contained in the contract expires such that the contract relating to that
        portion of Bookings is no longer cancelable by the customer.  For each
        fiscal quarter, total Bookings will be determined utilizing the Company’s
        internal financial statements measured against the Company’s 2008 Annual
        Financial Plan.

      The
        portion of an executive’s bonus opportunity related to Bookings (a “Bookings
        Portion”) is determined and (if applicable) distributed equally across the
        fiscal year, with 25% of the Bookings Portion eligible for payment each
        quarter.  Whether the Bookings Portion qualifies for payment, however,
        is determined entirely by actual Company performance against the Company’s
        Bookings goals according to the following schedule:

       

      ·  If
        the Company does not achieve at least 80% of its Bookings goal for the quarter,
        then none of the Bookings Portion will qualify for payment that
        quarter.

       

      ·  If
        the Company achieves at least 80% of its Bookings goal for the quarter, but
        less
        than 100% of its Bookings goal for the quarter, then 50% of an executive’s
        target for the Bookings Portion will qualify for payment, with an additional
        2.5% of an executive’s target for the Bookings Portion qualifying for payment
        for each 1% above 80% to 100% of the Bookings goal that was achieved for
        the
        quarter.

       

      ·  If
        the Company achieves greater than 100% of its Bookings goal but less than
        120%
        of its Bookings goal, then an additional 5% of an executive’s target will
        qualify for payment after year end for each 1% above 100% of Bookings goal
        to
        120% of Bookings goal. From 120% of Bookings goal to 130% of Bookings
        goal,  an additional 10% of an executive’s target will qualify for
        payment after year end for each 1% above 120% of Bookings goal to 130% of
        Bookings goal until the maximum payout of 300% is reached.

       

      

      Revenue

      Revenue
        is the second measure for the Executive Bonus Plan and is defined as revenue
        as
        recognized under GAAP on the Company’s quarterly consolidated statement of
        operations in $US.

      

      ·  If
        the Company does not achieve at least 80% of its revenue goal for the quarter,
        then none of the Revenue Portion will qualify for payment that
        quarter.

       

      ·  If
        the Company achieves at least 80% of its revenue goal for the quarter then
        25%
        of an executive’s target for the revenue portion will qualify for payment, with
        an additional 3.75% of an executive’s target for the revenue portion qualifying
        for payment for each 1% above 80% of revenue goal to 100% of the revenue
        goal
        that was achieved for the quarter.

       

      ·   If
        the Company achieves greater than 100% of its revenue goal, then an additional
        5% of an executive’s target will qualify for payment after year end for each 1%
        above 100% of revenue goal until the payment of 200% at 120% of goal is reached.
        From 120% of revenue goal to 130% of revenue goal, then an additional 10%
        of an
        executive’s target will qualify for payment after year end for each 1% above
        120% of Revenue goal to 130% of revenue goal until the maximum payout of
        300% is
        reached.

       

      

       

      

       

      

       

      Non
        GAAP Operating Profit

       

      Non-GAAP
        Operating Profit is the third measure for the Executive Bonus Plan and is
        defined as Non-GAAP Operating Profit reported on  the Company’s
        quarterly Non-GAAP consolidated statement of operations in
        $US.  Historically, these Non-GAAP results exclude amortization of
        intangible assets and capitalized software development, stock-based compensation
        and other non-recurring charges.

      

      ·  If
        the Company does not achieve at least 80% of its Non-GAAP Operating Profit
        goal
        for the quarter, then none of the Non-GAAP Operating Profit portion will
        qualify
        for payment that quarter.

       

      ·  If
        the Company achieves at least 80% of its Non-GAAP Operating
        Profit  goal for the quarter then 25% of an executive’s target for the
        Non-GAAP Operating profit portion will qualify for payment, with an additional
        3.75% of an executive’s target for the Non-GAAP operating profit portion
        qualifying for payment for each 1% above 80% of revenue goal to 100% of the
        Non-GAAP Operating Profit goal that was achieved for the quarter.

       

      ·   If
        the Company achieves greater than 100% of its Non-GAAP Operating Profit goal,
        then an additional 5% of an executive’s target will qualify for payment after
        year end for each 1% above 100% of Non-GAAP Operating Profit goal until the
        payment of 200% at 120% of goal is reached. From 120% of Non-GAAP Operating
        Profit goal to 130% of Non-GAAP Operating Profit goal, then an additional
        10% of
        an executive’s target will qualify for payment after year end for each 1% above
        120% of Non-GAAP Operating profit goal to 130% of Non-GAAP Operating Profit
        goal
        until the maximum payout of 300% is reached.

       

      Cash
        Flow

       

      Cash
        Flow is the fourth  measure for the Executive Bonus Plan and is
        defined as the periodic Change in Reported Cash, Cash Equivalents, Marketable
        Securities and Restricted Cash)  reported on  the Company’s
        quarterly consolidated statement of balance sheets in $US.

      

      ·  If
        the Company does not achieve at least 80% of its revenue goal for the quarter,
        then none of the Revenue Portion will qualify for payment that
        quarter.

       

      ·  If
        the Company achieves at least 80% of its Non-GAAP Operating Profit goal for
        the
        quarter then 25% of an executive’s target for the Non-GAAP Operating profit
        portion will qualify for payment, with an additional 3.75% of an executive’s
        target for the Non-GAAP operating profit portion qualifying for payment for
        each
        1% above 80% of revenue goal to 100% of the Non-GAAP Operating Profit goal
        that
        was achieved for the quarter.

       

      ·   If
        the Company achieves greater than 100% of its Cash Flow goal, then an additional
        5% of an executive’s target will qualify for payment after year end for each 1%
        above 100% of Cash Flow goal until the payment of 200% at 120% of goal is
        reached. From 120% of Cash Flow goal to 130% of  Cash Flow goal, then
        an additional 10% of an executive’s target will qualify for payment after year
        end for each 1% above 120% of Cash Flow goal to 130% of Cash Flow goal until
        the
        maximum payout of 300% is reached.

       

      Calculations

      

      Calculations
        of quarterly payouts will be done on a quarterly stand-alone basis. At the
        end
        of the fiscal year the calculation of any payment in excess of 100% will
        be
        based on the results for the full year.  Executives joining the Company
        mid-year will only be entitled to a pro-rata portion of the bonus amount
        that
        exceeds 100%.

      

      

      Payment

       

      The
        final decision to pay a bonus will remain the decision of the Board of Directors
        or the Compensation Committee if so delegated by the Board.  The Board
        may in its own discretion, determine to pay or not pay a bonus based upon
        the
        factors listed above or other Company performance criteria it deems
        appropriate.  The factors listed above are guidelines to assist the
        Board, or the Committee, as the case may be, in its judgment but the final
        decision to pay or not pay is in the discretion the Board.  In its
        discretion, the Committee may recommend, and the Board has the authority
        to
        approve, a payment of up to 50% of an executive’s bonus opportunity to an
        individual(s) without regard to the performance criteria set forth in this
        plan.

      

      Bonuses
        are generally calculated within thirty (30) days after the end of any given
        quarter and are generally paid within forty-five (45) days after the end
        of a
        given quarter, and generally not later than 60 days following the end of
        such
        quarter.  Bonuses are then paid in the next regularly-scheduled
        paycheck.  Payment for achievement of greater than 100% of plan goal
        generally will be made not later than 60 days following the close of the
        Company’s fiscal year.  These payment dates are contingent upon the
        Company filing its periodic forms 10-Q and 10-K.

       

      No
        bonus is earned until it is paid under this plan.  Therefore, in the
        event the employment of an executive eligible under this plan  is
        terminated (either by the Company or by the eligible executive, whether
        voluntarily or involuntarily) before a bonus is paid, then the executive
        will
        not be deemed to have earned that bonus, and will not be entitled to any
        portion
        of that bonus.

       

      Questions
        regarding the Plan should be directed to the Chief Executive Officer or the
        Vice
        President of Human Resources.  Acceptance of payment(s) under the Plan
        constitutes full and complete acceptance of its terms and
        conditions.  Any eligible employee wishing to not participate in the
        Plan must notify the Vice President, Human Resources in writing of their
        desire
        and intent.

       

      Nothing
        in this Plan is intended to alter the at-will nature of employment with the
        Company, that is, the executive’s right or the Company’s right to terminate the
        executive’s employment at will, at any time with or without cause or advance
        notice.  In addition, acceptance of this Plan shall not be construed
        to imply a guarantee of employment for any specified period of
        time.

       

      This
        Plan contains the entire agreement between the Company and its executives
        on
        this subject, and supersedes all prior bonus compensation plans or programs
        of
        the Company and all other previous oral or written statements regarding any
        such
        bonus compensation programs or plans.

       

      The
        contents of this Plan are Company confidential.  This Plan shall be
        governed by and construed under the laws of the State of
        California.

       

      *   *   *

       

      I
        have read and understand the provisions of this 2008 Executive Bonus Plan
        and
        hereby accept its terms.

       

      

      Employee
        Name
        (Printed)                                                      Employee
        Signature                                                      Date

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