CHORDIANT SOFTWARE INC
PERFORMANCE SHARE UNIT AWARD PROGRAM
<DOCUMENT>
<TYPE>EX-10.66
<SEQUENCE>11
<FILENAME>ex1066.htm
<DESCRIPTION>PERFORMANCE SHARE UNIT AWARD PROGRAM
<TEXT>
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    <div><br>&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman Bold, serif;"><strong>[
      * ] = 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.</strong></font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;<br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>Exhibit
        10.66</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman, serif;"><strong>Chordiant
        Software, Inc.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman, serif;"><strong>2005
        Equity Incentive Plan</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman, serif;"><strong>2008-2009
        Performance Share Unit Program</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman Bold, serif;"><strong>Adopted:&#160;&#160;October
        11, 2007</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>1.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>Purpose.</strong>&#160;&#160;The
        Chordiant Software, Inc. 2008-2009 Performance Share Unit Program (the
&#8220;Program&#8221;), established under the Chordiant Software, Inc. 2005 Equity Incentive
        Plan (the &#8220;Plan&#8221;), is intended to provide equity incentive compensation to
        individuals who make a significant contribution to the performance of Chordiant
        Software, Inc. (the &#8220;Company&#8221;).&#160;&#160;Program objectives are
        to:&#160;&#160;(i) focus key Employees on achieving specific performance
        targets, (ii) reinforce a team orientation, (iii) provide significant award
        potential for achieving outstanding performance, and (iv) enhance the ability
        of
        the Company to attract and retain highly talented and competent
        individuals.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>2.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>Definitions.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Defined
        terms not explicitly defined in this Program but defined in the Plan shall
        have
        the same definitions as in the Plan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(a)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>&#8220;Actual
        Award&#8221;</em></strong> means the number of shares of Common Stock earned by a
        Designated Participant under the Program during a Performance Period based
        on
        achievement of applicable Performance Goals and Other Performance Goals,
        as
        determined on the Certification Date.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(b)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>&#8220;Certification
        Date&#8221;</em></strong> means the date on which the Committee certifies the extent
        to which the Performance Goals have been met under the Performance Award
        Formula
        and whether any reductions in the Maximum Awards should be made on account
        of
        the degree of achievement of the Other Performance Goals or other factors
        (to
        the extent permitted under Section 162(m) of the Code).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(c)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>&#8220;Designated
        Participant&#8221;</em></strong> means a key Employee of the
        Company<strong>&#160;</strong>who is designated by the Committee in writing to
        participate in the Program.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(d)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>&#8220;Maximum
        Award&#8221;</em></strong> means the maximum number of shares of Common Stock that may
        be credited to a Designated Participant under the Program in respect of a
        specified Performance Period and issued if the applicable Performance Goals
        and
        Other Performance Goals are achieved at the levels set by the Committee during
        the applicable Performance Period and if the Designated Participant remains
        in
        Continuous Service during the entire Performance Period.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(e)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>&#8220;Other
        Performance Goal&#8221;</em></strong> means a performance goal established by the
        Committee that is not a Performance Goal established pursuant to Section
        2(kk)
        of the Plan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(f)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>&#8220;Performance
        Period&#8221;</em></strong> means the period of time selected by the Committee over
        which the attainment of one or more Performance Goals and Other Performance
        Goals will be measured for the purpose of determining a Designated Participant&#8217;s
        right to an Actual Award.&#160;&#160;At the discretion of the Committee, a
        Performance Period may be divided into shorter periods (for example, fiscal
        quarters of the Company) over which the attainment of one or more Performance
        Goals and Other Performance Goals will be measured.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>3.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>How
        Awards Are Earned Under the Program.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(a)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>General
        Program Description.</em></strong>&#160;&#160;The Program provides the
        opportunity for certain key Employees to earn shares of Common Stock based
        on
        the performance of the Company.&#160;&#160;In general, the Committee will select
        certain key Employees to participate in the Program at the beginning of a
        Performance Period.&#160;&#160;Upon selection to participate in the Program,
        each such Designated Participant will be granted a Maximum Award equal to
        the
        number of shares of Common Stock that can be issued under an Actual Award
        to
        such Designated Participant&#160;&#160;if (i) specified levels of applicable
        Performance Goals are achieved during the Performance Period, (ii) the Committee
        does not reduce the Maximum Award on account of the degree of achievement
        of
        applicable Performance Goals and/or Other Performance Goals, and
        (iii)<strong>&#160;</strong>the Designated Participant remains in Continuous
        Service during the entire Performance Period and any subsequent additional
        vesting period.&#160;&#160;If the Committee does reduce the Maximum Award on
        account of the degree of achievement of applicable Performance Goals and/or
        Other Performance Goals, the Designated Participant will be awarded a portion
        (or none) of the shares of Common Stock subject to the Maximum Award;
<em>provided, however,</em> that (i) if the specified level of Performance Goals
        is not achieved during the Performance Period, the Designated Participant
        will
        not receive any shares of Common Stock, and (ii) the maximum number of shares
        of
        Common Stock that a Designated Participant may receive as an Actual Award
        will
        in no event exceed the Maximum Award.&#160;&#160;The methodology for the
        operation of the Program in terms of establishing the Maximum Award based
        on the
        levels of achievement of the Performance Goals and the determination of whether
        the Maximum Award, or some portion of it, will become payable to a Designated
        Participant as an Actual Award in respect of a Performance Period is set
        forth
        in the attached <strong><u>Exhibit&#160;A</u></strong>, as amended from time to
        time.&#160;&#160;As required by Section 7(e) of the Plan and in accordance with
        Section 162(m) of the Code, in no event may a Maximum Award be granted to
        a
        Designated Participant such that the number of shares of Common Stock that
        could
        be earned by such Designated Participant in any calendar year under all
        Performance Stock Awards, including the Maximum Award, would exceed 3,000,000
        shares of Common Stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(b)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>Designated
        Participants.</em></strong>Each key Employee of the Company who is designated by
        the Committee in writing for participation in the Program for a particular
        Performance Period shall be eligible for a Maximum Award with respect to
        such
        Performance Period.&#160;&#160;The Committee may designate a key Employee who
        commences Continuous Service after the beginning of a particular Performance
        Period as eligible to receive a prorated Maximum Award for such Performance
        Period.&#160;&#160;The determination as to whether an individual is a Designated
        Participant shall be made by the Committee, in its sole discretion, and such
        determination shall be binding and conclusive on all persons.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">No
        Employee shall have any right to be a Designated Participant in the Program,
        to
        continue as a Designated Participant, or to be granted a Maximum Award or
        Actual
        Award under the Program.&#160;&#160;The Company is not obligated to give uniform
        treatment (<em>e.g</em>., number of shares subject to Maximum Awards) to
        Employees or Designated Participants under the Program.&#160;&#160;Participation
        in the Program as to a particular Performance Period does not convey any
        right
        to participate in the Program as to any other Performance Period.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(c)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>Performance
        Goals and Other Performance Goals.</em></strong>&#160;&#160;The Performance
        Goals&#160;&#160;and Other Performance Goals, if applicable, for a particular
        Performance Period and their relative weights, will be determined by the
        Committee, in its sole discretion. The Committee also may establish, in its
        sole
        discretion, Performance Goals and Other Performance Goals for annual, quarterly
        or other periods within the applicable Performance Period.&#160;&#160;The
        Performance Goals and Other Performance Goals for a Performance Period or
        for
        shorter periods within a Performance Period are not required to be identical
        to
        the Performance Goals and Other Performance Goals for any other Performance
        Period or shorter period within a Performance Period.&#160;&#160;The Committee
        may establish Performance Goals and Other Performance Goals for each Designated
        Participant or for groups of Designated Participants.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>4.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>Other
        Program Provisions.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(a)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>Distribution
        of Actual Awards.&#160;&#160;</em></strong>Assessment of actual performance,
        determination of Actual Awards and the distribution of shares of Common Stock
        in
        respect of Actual Awards will be subject to (i) certification by the Committee
        that the applicable Performance Goals and other terms of the Program have
        been
        met, (ii) the Committee&#8217;s determination as to the appropriate reductions, if
        any, in the amounts of the Maximum Awards in arriving at the amounts of the
        Actual Awards, based on the levels of achievement of applicable Performance
        Goals, Other Performance Goals and/or other factors, and (iii) the completion
        of
        any subsequent additional vesting period.&#160;&#160;Unless an Actual Award is
        subject to additional vesting conditions following the Certification Date
        (as
        provided in <strong><u>Exhibit A</u></strong>), shares of Common Stock that are
        credited to a Designated Participant as an Actual Award on the Certification
        Date will be fully vested as of the Certification Date.&#160;&#160;In all cases,
        vested shares will be distributed to the Designated Participant (or the
        Designated Participant&#8217;s heirs in the case of death) within thirty (30) days
        following the vesting date.&#160;&#160;Notwithstanding the foregoing, if the
        Company has provided a Designated Participant with a plan or program by which
        to
        defer distribution of such shares of Common Stock and the Designated Participant
        has made an effective election to defer such distribution under such plan
        or
        program, such shares will be distributed to the Designated Participant (or
        the
        Designated Participant&#8217;s heirs in the case of death) in accordance with such
        election.&#160;&#160;Notwithstanding the distribution of the shares, the
        Committee may determine that any shares issued under an Actual Award may
        not be
        immediately sold or transferred by the Designated Participant and must instead
        be held for a pre-determined period of time.&#160;&#160;The Company shall have
        the right to withhold shares of Common Stock otherwise deliverable to the
        Designated Participant in satisfaction of any federal, state or local tax
        withholding obligation relating to the delivery of Common Stock under the
        Actual
        Award, but the Company shall not withhold a number of shares with a fair
        market
        value <em>in excess</em> of the applicable tax withholdings determined by
        application of the minimum required statutory rates.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(b)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>Employment
        and Termination.</em></strong>&#160;&#160;In order to receive shares of Common
        Stock in respect of an Actual Award under the Program, a Designated Participant
        must remain in Continuous Service during the entire Performance Period, and
        for
        any subsequent additional vesting period, except as otherwise provided under
        the
        terms of the applicable Award Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(c)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>No
        Employment or Service Rights.</em></strong>&#160;&#160;Nothing in the Program or
        any instrument executed or Award granted pursuant to the Program shall (i)
        confer upon any Employee or Designated Participant any right to continue
        to be
        retained in the employ or service of the Company, (ii) change the at-will
        employment relationship between the Company and an Employee or Designated
        Participant, or (iii) interfere with the right of the Company to discharge
        any
        Employee, Designated Participant or other person at any time, with or without
        cause, and with or without advance notice.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(d)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>Program
        Administration.</em></strong>&#160;&#160;The Committee shall be responsible for
        all decisions and recommendations regarding Program administration and retains
        final authority regarding all aspects of Program administration, the resolution
        of any disputes, and the application of the Program in any respect to a
        Designated Participant.&#160;&#160;All determinations and interpretations made
        by the Committee in good faith shall not be subject to review by any person
        and
        shall be final, binding and conclusive on all persons.&#160;&#160;The Committee
        may, without notice, amend, suspend or terminate the Program; <em>provided,
        however, </em>that no such action may adversely affect any then outstanding
        Award unless (i) expressly provided by the Committee and (ii) with the consent
        of the Designated Participant, unless such action is necessary to comply
        with
        any applicable law, regulation or rule.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(e)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>Stockholder
        Rights.</em></strong><em>&#160;</em>No Designated Participant shall be deemed to
        be the holder of, or to have any of the rights of a holder with respect to,
        any
        shares of Common Stock subject to a Maximum Award (including, without
        limitation, the right to receive dividends) unless and until such Designated
        Participant has received an Actual Award under the Program, has vested in
        the
        shares subject to the Actual Award and has received delivery of such shares;
        <em>provided, however,</em> that a plan or program by which receipt of shares of
        Common Stock in respect of an Actual Award may be deferred may provide for
        the
        crediting of dividend equivalent rights.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(f)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>Validity.</em></strong>&#160;&#160;If
        any provision of the Program is held invalid, void, or unenforceable, the
        same
        will not affect, in any respect whatsoever, the validity of any other provision
        of the Program.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>(g)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><em>Governing
        Plan Document</em></strong><em>.</em>&#160;&#160;The Program is subject to all
        the provisions of the Plan and is further subject to all interpretations,
        amendments, rules and regulations which may from time to time be promulgated
        and
        adopted by the Committee, the Board or the Company pursuant to the
        Plan.&#160;&#160;In the event of any conflict between the provisions of this
        Program and those of the Plan, the provisions of the Plan shall
        control.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">&#160;&#160;&#160;&#160;&#160;&#160;

            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, serif;">&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>&#160;&#160;&#160;&#160;</div>
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          <div style="WIDTH: 100%" align="left">&#160;&#160;&#160;&#160;&#160;&#160;

            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman Bold, serif;"><strong>[
              * ] = 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.</strong></font>&#160;&#160;&#160;&#160;&#160;&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>&#160;&#160;&#160;&#160;</div>
        </div>
      </div><br>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top">
              <td style="WIDTH: 85.7pt">
                <div>&#160;</div>
              </td>
              <td>
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>Exhibit
                  A</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>2008-2009
        Performance Share Unit Program</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong>Award
        Calculation Methodology</strong></font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Capitalized
        terms not explicitly defined in this <strong><u>Exhibit A</u></strong> but
        defined in the Program or the Plan shall have the same definitions as in
        the
        Program or the Plan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Award
        Type &amp; Size</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Designated
                  Participants will be granted performance-based Restricted Stock
                  Units
                  (RSUs) under Chordiant&#8217;s 2005 Equity Incentive Plan. RSUs are bookkeeping
                  entries, not representing any actual ownership of shares of Common
                  Stock
                  until the Award has vested and shares of Common Stock have been
                  delivered.&#160;&#160;The number of RSUs granted corresponds on a 1:1
                  basis to shares of Common Stock that may be delivered in the future
                  based
                  on the provisions of the Plan, the Program and the applicable Award
                  Agreement.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">The
                  Award Agreement issued to the Designated Participant will set forth
                  the
                  number of shares subject to the total Target Award and the total
                  Maximum
                  Award that such&#160;&#160;Designated Participant can
                  earn.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Date
        of Grant</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Awards
                  subject to this <strong><u>Exhibit A</u></strong> will be granted on
                  October 11, 2007.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Performance
        Period &amp; Vesting</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Performance
                  will be measured over the two year period constituting the Company&#8217;s
                  fiscal years 2008 and 2009 (the &#8220;Performance
                  Period&#8221;)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Subject
                  to the Designated Participant&#8217;s Continuous Service through the
                  Certification Date, the shares of Common Stock subject to the Actual
                  Award
                  will vest in full on the Certification
                  Date.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Except
                  in the case of a Change in Control, the Certification Date shall
                  occur
                  within the ten (10) day period after the date on which the Company
                  files
                  its annual report on Form 10-K for fiscal year 2009.&#160;&#160;If a
                  Change in Control occurs prior to the Committee&#8217;s determination in such
                  ten (10) day period, the effective date of the Change in Control
                  shall be
                  the Certification Date (as further described
                  below).</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Award
        Metrics</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Up
                  to 50% of the Maximum Award will be earned based on achievement
                  of
                  Cumulative Revenue (such 50% , the &#8220;Maximum Revenue Award&#8221;), as
                  follows:</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" valign="top" width="18%" style="BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Performance
                  Level</font></div>
              </td>
              <td valign="top" width="20%" style="BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Cumulative
                  Revenue</font></div>
              </td>
              <td valign="top" width="17%" style="BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">%
                  of Maximum Revenue Award Earned</font></div>
              </td>
              <td valign="top" width="20%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">With
                  Respect to this 50% of the Award:</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="18%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Threshold</font></div>
              </td>
              <td valign="top" width="20%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">$[
                  * ]</font></div>
              </td>
              <td valign="top" width="17%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">0%</font></div>
              </td>
              <td valign="top" width="20%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="18%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Target</font></div>
              </td>
              <td valign="top" width="20%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">$[
                  * ]</font></div>
              </td>
              <td valign="top" width="17%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">66.67%</font></div>
              </td>
              <td valign="top" width="20%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Target
                  Award&#8221;</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="18%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Maximum</font></div>
              </td>
              <td valign="top" width="20%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">$[
                  * ]</font></div>
              </td>
              <td valign="top" width="17%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">100%</font></div>
              </td>
              <td valign="top" width="20%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Maximum
                  Award&#8221;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><u>For
        example</u>, assume a Designated Participant has been granted a Maximum Award
        covering 36 shares.&#160;&#160;If the Company achieved Cumulative Revenue of $[
        * ], the Designated Participant will earn 66.67% of the 18 shares that
        constitute his Maximum Revenue Award &#8211; i.e., 12 shares.</font></div>
      <div><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Up
                  to 50% of the Maximum Award will be earned based on achievement
                  of
                  Cumulative Operating Income (such 50%, the &#8220;Maximum OI Award&#8221;), subject to
                  reductions for the Other Performance Goal.&#160;&#160;In order to earn any
                  part of the Maximum OI Award, the Company must achieve Cumulative
                  Operating Income of at least $[ * ] (the &#8220;Funding Gate&#8221;).&#160;&#160;If
                  the Funding Gate is not met, no part of the Maximum OI Award will
                  be
                  earned.&#160;&#160;If the Funding Gate is met, the Maximum OI Award will
                  be earned, subject to reduction based on the achievement of the
                  Other
                  Performance Goal, as follows:</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" valign="top" width="16%" style="BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Performance
                  Level</font></div>
              </td>
              <td valign="top" width="23%" style="BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Cumulative
                  Non-GAAP Operating Profit</font></div>
              </td>
              <td valign="top" width="17%" style="BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">%
                  of Maximum OI Award Earned</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-TOP: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">With
                  Respect to this 50% of the Award:</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="16%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Threshold</font></div>
              </td>
              <td valign="top" width="23%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">$[
                  * ]</font></div>
              </td>
              <td valign="top" width="17%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">0%</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="16%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Target</font></div>
              </td>
              <td valign="top" width="23%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">$[
                  * ]</font></div>
              </td>
              <td valign="top" width="17%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">66.67%</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Target
                  Award&#8221;</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="16%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Maximum</font></div>
              </td>
              <td valign="top" width="23%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">$[
                  * ]</font></div>
              </td>
              <td valign="top" width="17%" style="BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">100%</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-RIGHT: black 0.5pt solid; BORDER-LEFT: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Maximum
                  Award&#8221;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><u>For
        example</u>, for the Designated Participant described in the example above, if
        the Company achieved the full Funding Gate, and also achieved Cumulative
        Non-GAAP Operating Profit of $[ * ], the Designated Participant will earn
        100%
        of the 18 shares that constitute his Maximum OI Award &#8211; i.e., 18
        shares.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">In
        total, this Designated Participant earned an Actual Award equal to 30 shares
        (out of his total 36 share Maximum Award.</font></div>
      <div><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">In
                  applying the foregoing tables,&#160;&#160;linear interpolation shall be
                  used for Performance Levels that are other than the Threshold,
                  Target and
                  Maximum levels.&#160;&#160;Moreover, in applying the percentage of a
                  Maximum Award earned,&#160;&#160;partial shares of Common Stock shall be
                  rounded up to the nearest whole
                  share.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Holding
        Period</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Each
                  Designated Participant must not sell or otherwise transfer (excluding
                  transfers to family trusts for tax planning purposes for which
                  the
                  Designated Participant is deemed to be the &#8220;beneficial owner&#8221; of the
                  shares for purposes of the Exchange Act) any of the shares of Common
                  Stock
                  issued under the Actual Award until the earliest of (1) the fourth
                  anniversary of the Date of Grant, (2) a Change in Control of the
                  Company,
                  (3) the certification by the Board that the Designated Participant
                  is
                  suffering an Unforeseeable Emergency, or (4) the termination of
                  the
                  Designated Participant&#8217;s Continuous Service with the Company as a result
                  of an Involuntary Termination or as a result of the Designated
                  Participant&#8217;s death or Disability (such period, the &#8220;Holding
                  Period&#8221;).</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Shares
                  withheld by the Company to cover applicable tax withholdings will
                  not be
                  deemed a violation of the Holding
                  Period.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">The
                  Company will place appropriate legends on the certificates representing
                  the shares of Common Stock issued under the Actual Award regarding
                  the
                  Holding Period, and will take such steps as otherwise reasonably
                  necessary
                  to enforce the Holding Period (including but not limited to placing
                  the
                  shares into an escrow account and issuance of a stop transfer order).
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Effects
        of a Change In Control</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">If
                  the effective date of the Change in Control occurs prior to the
                  Certification Date, Designated Participant will earn, as of immediately
                  prior to the Change in Control, an Actual Award equal to the lesser
                  of (1)
                  1.0 of the Target Award (i.e., the number of shares determined
                  under the
                  tables above as if the Funding Gate was met and all applicable
                  Performance
                  Goals and the Other Performance Goal had been achieved at the Target
                  level
                  of performance) and (ii) the product of (a) 1.0 of the Target Award
                  and
                  (b) a fraction, the numerator of which is the number of months
                  since the
                  start of the Performance Period (rounded up for any partial months
                  of
                  service) plus 12 months, and the denominator of which is
                  24.&#160;&#160;The effective date of the Change in Control will be the
                  Certification Date for purposes of the Program.&#160;&#160;The Actual
                  Award will be fully vested as of Certification
                  Date.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">For
        example, assume a Designated Participant has been granted a Maximum Award
        covering 36 shares, so that his Target Award is for 24 shares.&#160;&#160;If the
        Change in Control occurs on the 15<font style="DISPLAY: inline; FONT-SIZE: 8pt;"><sup>th</sup></font> day of
        the sixth
        month of fiscal year 2008, and the Designated Participant remains in Continuous
        Service through such date, the Designated Participant will earn an Actual
        Award
        equal to [(6 + 12)/24] x 24 shares = 18 shares.&#160;&#160;This Actual Award
        will be fully vested as of the effective date of the Change in
        Control.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Compliance
        with Section 409A of the Code</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">It
                  is intended that the Awards granted under the Program satisfy,
                  to the
                  greatest extent possible, the exception from the application of
                  Section
                  409A provided under Treasury Regulations Section 1.409A-1(b)(4)
                  (i.e., the
                  &#8220;short term deferral exception&#8221;).</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">Notwithstanding
                  the foregoing, if the Company (or, if applicable, the successor
                  entity
                  thereto) determines that any Award under the Program constitutes
                  a
                  &#8220;deferral of compensation&#8221; under Section 409A of the Code (together, with
                  any state law of similar effect, &#8220;Section 409A&#8221;) and if a Designated
                  Employee is a &#8220;specified employee&#8221; of the Company or any successor entity
                  thereto as such term is defined in Section 409A(a)(2)(B)(i) (a
&#8220;Specified
                  Employee&#8221;) as of the date of the Designated Participant&#8217;s &#8220;separation from
                  service&#8221; (within the meaning of Treasury Regulations Section 1.409A-1(h))
                  (such date, the &#8220;Separation Date&#8221;), then, solely to the extent necessary
                  to avoid the incurrence of the adverse personal tax consequences
                  under
                  Section 409A resulting from the delivery of shares of Common Stock
                  as a
                  result of his or her separation from service (as defined above),
                  the
                  delivery of the shares of Common Stock (or any portion thereof)
                  shall be
                  delayed as follows:&#160;&#160;on the earlier to occur of (i) the date
                  that is six months and one day after the Separation Date or (ii)
                  the date
                  of the Designated Employee&#8217;s death (such earlier date, the &#8220;Delayed
                  Initial Payment Date&#8221;), the Company (or the successor entity thereto, as
                  applicable) shall (A) issue to the Designated Employee those shares
                  subject to the Actual Award that the Designated Employee would
                  otherwise
                  have been issued through the Delayed Initial Payment Date if the
                  issuance
                  of the shares had not been delayed pursuant to this paragraph and
                  (B)
                  commence issuing the balance of the shares in accordance with the
                  original
                  issuance schedule described
                  above.&#160;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">It
                  is intended that each installment of the issuance of the shares
                  provided
                  for in the Program is a separate &#8220;payment&#8221; for purposes of Treasury
                  Regulations Section 1.409A-2(b)(2).
</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Other
        Terms &amp; Conditions</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">No
                  rights to dividends or dividend equivalents under the RSUs, except
                  as
                  provided under Section 11(a) of the
                  Plan.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;"><strong><u>Definitions</u></strong></font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Change
                  in Control&#8221; will have the meaning set forth in the Plan; provided,
                  however, that Section 2(f)(v) will, for purposes of this Program,
                  be
                  revised to read as follows: &#8220;individuals who, on the date this Plan is
                  adopted by the Board, are members of the Board (the &#8220;Incumbent Board&#8221;)
                  cease for any reason to constitute at least a majority of the members
                  of
                  the Board during any 12-month period; <em>provided, however</em>, that if
                  the appointment or election (or nomination for election) of any
                  new Board
                  member was approved or recommended by a majority vote of the members
                  of
                  the Incumbent Board then still in office, such new member shall,
                  for
                  purposes of the Plan, be considered a member of the Incumbent
                  Board.&#8221;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Cumulative
                  Non-GAAP Operating Profit&#8221; means Cumulative Operating Income, excluding
                  the following:</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">1.&#160;&#160;&#160;&#160;&#160;&#160;restructuring
        and other nonrecurring charges;</font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">2.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">the
                  effects of any &#8220;extraordinary items&#8221; as determined under
                  GAAP;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">3.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">charges
                  for stock based compensation; and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">4.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">amortization
                  of intangible assets or purchased
                  software</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Cumulative
                  Operating Income&#8221; means total GAAP operating income as would be reported
                  in the Company&#8217;s filings under Form 10-K, but excluding restructuring and
                  other nonrecurring charges and the effects of any &#8220;extraordinary items&#8221; as
                  determined under GAAP</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Cumulative
                  Revenue&#8221; means total GAAP revenue as would be reported in the Company&#8217;s
                  filings under Form 10-K, but excluding restructuring and other
                  nonrecurring charges and the effects of any &#8220;extraordinary items&#8221; as
                  determined under GAAP</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Good
                  Reason&#8221; means the Designated Participant has resigned from all positions
                  he or she then holds with the Company (or any successor thereto)
                  if (1)
                  one of the following actions has been taken:&#160;&#160;(a) there is a
                  material diminution of Designated Participant&#8217;s authority, duties, or
                  responsibilities; <em>provided, however</em>, that Good Reason shall not
                  be satisfied solely by reason of such Designated Participant&#8217;s retaining
                  substantially the same position held prior to a Change in Control,
                  but in
                  a distinct legal entity or business unit of a larger entity following
                  such
                  Change in Control, (b) there is a material reduction in the Designated
                  Participant&#8217;s annual base salary or target bonus opportunity, except to
                  the extent the base salaries or target bonus opportunities (as
                  applicable)
                  of other similarly situated officers of the Company are accordingly
                  reduced, (c) the Designated Participant is required to relocate
                  his or her
                  primary work location to a facility or location that would increase
                  the
                  Designated Participant&#8217;s one way commute distance by more than twenty (20)
                  miles from the Designated Participant&#8217;s primary work location as of
                  immediately prior to such change, or (d) the Company (or any successor
                  thereto) materially breaches its obligations under this Program
                  or any
                  effective written employment agreement with the Designated Participant,
                  and (2) the Designated Participant provides written notice to the
                  Company&#8217;s General Counsel within thirty (30) days after such material
                  change or reduction, (3) such material change or reduction is not
                  remedied
                  by the Company within thirty (30) days following the Company&#8217;s receipt of
                  such written notice, and (4) the Designated Participant&#8217;s resignation is
                  effective not later than sixty (60) days after the expiration of
                  such
                  thirty (30) day cure period.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Involuntary
                  Termination&#8221; means a termination without Cause or a resignation for Good
                  Reason.&#160;&#160;A termination by reason of death or Disability shall
                  not be considered an Involuntary
                  Termination.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Other
                  Performance Goal&#8221; means Cumulative Non-GAAP Operating
                  Profit.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top">
              <td align="right" style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif;">&#8220;Unforeseeable
                  Emergency&#8221; means a severe financial hardship to the Designated Participant
                  after the issuance of the shares under the Actual Award, which
                  hardship
                  results from (1) an illness or accident of the Designated Participant
                  or
                  his or her&#160;&#160;spouse, registered domestic partner, parent or
                  child; (2) loss of the Designated Participant&#8217;s property due to casualty
                  (including the need to rebuild the Designated Participant&#8217;s primary
                  residence following damage to the home not otherwise covered by
                  insurance); or (3) other similar extraordinary and unforeseeable
                  circumstances arising as a result of events beyond the control
                  of the
                  Designated Participant.</font></div>
              </td>
            </tr>

        </table>
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