diff --git a/MachineLearning/cn/ComputationNode.h b/MachineLearning/cn/ComputationNode.h
index eb23b5b33..9e294e863 100644
--- a/MachineLearning/cn/ComputationNode.h
+++ b/MachineLearning/cn/ComputationNode.h
@@ -4376,11 +4376,11 @@ protected:  \
 
             if (inputIndex == 0)  //left derivative
             {
-                ComputeInputPartialLeft(m_invNorm0, m_invNorm1, FunctionValues(), m_temp, m_rightTerm, m_leftTerm, Inputs(0)->FunctionValues(), Inputs(1)->FunctionValues(), Inputs(inputIndex)->GradientValues());  
+                ComputeInputPartialLeft(m_invNorm0, m_invNorm1, FunctionValues(), m_temp, m_rightTerm, m_leftTerm, Inputs(0)->FunctionValues(), Inputs(1)->FunctionValues(), GradientValues(), Inputs(inputIndex)->GradientValues());
             }
             else  //right derivative
             {
-                ComputeInputPartialRight(m_invNorm0, m_invNorm1, FunctionValues(), m_temp, m_rightTerm, m_leftTerm, Inputs(0)->FunctionValues(), Inputs(1)->FunctionValues(), Inputs(inputIndex)->GradientValues());  
+                ComputeInputPartialRight(m_invNorm0, m_invNorm1, FunctionValues(), m_temp, m_rightTerm, m_leftTerm, Inputs(0)->FunctionValues(), Inputs(1)->FunctionValues(), GradientValues(), Inputs(inputIndex)->GradientValues());
             }
         }
 
@@ -4393,31 +4393,32 @@ protected:  \
             Matrix<ElemType> sliceInput1Value = Inputs(1)->FunctionValues().ColumnSlice(timeIdxInSeq * m_samplesInRecurrentStep, m_samplesInRecurrentStep);
             Matrix<ElemType> sliceOutputValue = m_functionValues.ColumnSlice(timeIdxInSeq * m_samplesInRecurrentStep, m_samplesInRecurrentStep);
             Matrix<ElemType> sliceInputGrad = Inputs(inputIndex)->GradientValues().ColumnSlice(timeIdxInSeq * m_samplesInRecurrentStep, m_samplesInRecurrentStep);
+            Matrix<ElemType> sliceOutputGrad = this->GradientValues().ColumnSlice(timeIdxInSeq * m_samplesInRecurrentStep, m_samplesInRecurrentStep);
 
             if (inputIndex == 0)  //left derivative
             {
-                ComputeInputPartialLeft(m_invNorm0, m_invNorm1, sliceOutputValue, m_temp, m_rightTerm, m_leftTerm, sliceInput0Value, sliceInput1Value, sliceInputGrad);  
+                ComputeInputPartialLeft(m_invNorm0, m_invNorm1, sliceOutputValue, m_temp, m_rightTerm, m_leftTerm, sliceInput0Value, sliceInput1Value, sliceOutputGrad, sliceInputGrad);
             }
             else  //right derivative
             {
-                ComputeInputPartialRight(m_invNorm0, m_invNorm1, sliceOutputValue, m_temp, m_rightTerm, m_leftTerm, sliceInput0Value, sliceInput1Value, sliceInputGrad);  
+                ComputeInputPartialRight(m_invNorm0, m_invNorm1, sliceOutputValue, m_temp, m_rightTerm, m_leftTerm, sliceInput0Value, sliceInput1Value, sliceOutputGrad, sliceInputGrad);
             }
         }
 
         static void WINAPI ComputeInputPartialLeft(const Matrix<ElemType>& invNorm0, const Matrix<ElemType>& invNorm1, const Matrix<ElemType>& functionValues, 
             Matrix<ElemType>& temp, Matrix<ElemType>& rightTerm, Matrix<ElemType>& leftTerm, // the temporary variables
-            const Matrix<ElemType>& in0, const Matrix<ElemType>& in1, 
+            const Matrix<ElemType>& in0, const Matrix<ElemType>& in1, const Matrix<ElemType>& gradientValues,
             Matrix<ElemType>& inputGradientValues)
         {
-            ComputeInputPartialS(0, invNorm0, invNorm1, functionValues, temp, rightTerm, leftTerm, in0, in1, inputGradientValues);  
+            ComputeInputPartialS(0, invNorm0, invNorm1, functionValues, temp, rightTerm, leftTerm, in0, in1, gradientValues, inputGradientValues);
         }
 
         static void WINAPI ComputeInputPartialRight(const Matrix<ElemType>& invNorm0, const Matrix<ElemType>& invNorm1, const Matrix<ElemType>& functionValues, 
             Matrix<ElemType>& temp, Matrix<ElemType>& rightTerm, Matrix<ElemType>& leftTerm, // the temporary variables
-            const Matrix<ElemType>& in0, const Matrix<ElemType>& in1, 
+            const Matrix<ElemType>& in0, const Matrix<ElemType>& in1, const Matrix<ElemType>& gradientValues,
             Matrix<ElemType>& inputGradientValues)  
         {
-            ComputeInputPartialS(1, invNorm0, invNorm1, functionValues, temp, rightTerm, leftTerm, in0, in1, inputGradientValues);  
+            ComputeInputPartialS(1, invNorm0, invNorm1, functionValues, temp, rightTerm, leftTerm, in0, in1, gradientValues, inputGradientValues);  
         }
 
         // functionValues, invNorm0, invNorm1 - output from the EvaluateNode() method
@@ -4426,7 +4427,7 @@ protected:  \
         // inputGradientValues(x) - gradients to update, where x matches inputIndex
         static void WINAPI ComputeInputPartialS(const size_t inputIndex, const Matrix<ElemType>& invNorm0, const Matrix<ElemType>& invNorm1, const Matrix<ElemType>& functionValues, 
             Matrix<ElemType>& temp, Matrix<ElemType>& rightTerm, Matrix<ElemType>& leftTerm, // the temporary variables
-            const Matrix<ElemType>& in0, const Matrix<ElemType>& in1, 
+            const Matrix<ElemType>& in0, const Matrix<ElemType>& in1, const Matrix<ElemType>& gradientValues,
             Matrix<ElemType>& inputGradientValues)  
         {
             if (inputIndex == 0)  //left derivative
@@ -4446,7 +4447,14 @@ protected:  \
             leftTerm.SetValue(inputIndex?in0:in1);
             leftTerm.RowElementMultiplyWith(temp);
 
-            Matrix<ElemType>::AddScaledDifference(1, leftTerm, rightTerm, inputGradientValues);
+            leftTerm -= rightTerm;
+            leftTerm.RowElementMultiplyWith(gradientValues);
+            inputGradientValues += leftTerm;
+            
+            //alternatively the above three lines can be replaced by
+            //leftTerm.RowElementMultiplyWith(gradientValues);
+            //rightTerm.RowElementMultiplyWith(gradientValues);
+            //Matrix<ElemType>::AddScaledDifference(1, leftTerm, rightTerm, inputGradientValues);
         }
 
         // GetTaskDescriptor - Get a task descriptor for this node
@@ -4465,7 +4473,8 @@ protected:  \
                 descriptor->MatrixParam(m_leftTerm, "leftTerm", paramOptionsInput | paramOptionsTemporary);
                 descriptor->FunctionParam(0, paramOptionsInput);
                 descriptor->FunctionParam(1, paramOptionsInput);
-                descriptor->GradientParam(inputIndex,paramOptionsInput | paramOptionsOutput | paramOptionsInitialize);
+                descriptor->GradientParam(-1, paramOptionsInput);
+                descriptor->GradientParam(inputIndex, paramOptionsInput | paramOptionsOutput | paramOptionsInitialize);
                 descriptor->SetFunction(inputIndex?(FARPROC)ComputeInputPartialRight:(FARPROC)ComputeInputPartialLeft);
                 break;
             case taskEvaluate: