0000891618-05-000597 Sample Contracts

CALLIDUS SOFTWARE INC. RESTRICTED STOCK AGREEMENT
Restricted Stock Agreement • August 11th, 2005 • Callidus Software Inc • Services-computer programming services • California

This Restricted Stock Agreement (the “Agreement”), is made and entered into between CALLIDUS SOFTWARE INC., a Delaware corporation (the “Company”) and ROBERT H. YOUNGJOHNS (“Recipient”) residing at the above address. This award is granted as an “inducement grant” under Nasdaq rules and is therefore being granted outside the Company’s 2003 Stock Incentive Plan (as amended, the “Plan”). However, for convenience, reference is made in this Agreement to certain provisions of the Plan, and terms used but not defined herein have the meaning set forth in the Plan.

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CALLIDUS SOFTWARE, INC. NON-QUALIFIED STOCK OPTION AGREEMENT
Non-Qualified Stock Option Agreement • August 11th, 2005 • Callidus Software Inc • Services-computer programming services • California

Callidus Software Inc., a Delaware corporation (the “Company”), hereby grants to Robert Youngjohns (“Optionee”) an option to purchase 1,000,000 shares of its common stock on the terms set forth below (the “Option”). This option is granted as an “inducement grant” under Nasdaq rules and is therefore being granted outside the Company’s 2003 Stock Incentive Plan (as amended, the “Plan”). However, for convenience, reference is made in this Option Agreement to certain provisions of the Plan, and terms used but not defined herein have the meaning set forth in the Plan.

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