Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_04-cv-04419/USCOURTS-cand-3_04-cv-04419-6/pdf.json

Nature of Suit Code: 160
Nature of Suit: Stockholder's Suits
Cause of Action: 28:1332 Diversity-Stockholders Suits

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US_WEST:260069539.3

ORDER GRANTING PRELIMINARY APPROVAL OF

DERIVATIVE ACTION SETTLEMENT AND DIRECTING

MAILING OF NOTICE

C 04-4419 SI (JCS)

ROBERT C. SCHUBERT (STATE BAR NO. 62684)

JUDEN JUSTICE REED (STATE BAR NO. 153748)

WILLEM F. JONCKHEER (STATE BAR NO. 178748)

AARON H. DARSKY (STATE BAR NO. 212229)

SCHUBERT & REED LLP

Three Embarcadero Center, Suite 1650

San Francisco, CA 94111

Telephone: (415) 788-4220

BRIAN J. ROBBINS (STATE BAR NO. 190264)

MARC M. UMEDA (STATE BAR NO. 197847)

ROBBINS UMEDA & FINK, LLP

610 West Ash Street, Suite 1800

San Diego, CA 92101

Telephone: (619) 525-3990

Facsimile: (619) 525-3991

Attorneys for Plaintiff Henry Ramseur, Derivatively

on behalf of Callidus Software Inc.

WILLIAM F. ALDERMAN (STATE BAR NO. 47381)

JAMES N. KRAMER (STATE BAR NO. 154709)

M. TODD SCOTT (STATE BAR NO. 226885)

ORRICK, HERRINGTON & SUTCLIFFE LLP

The Orrick Building

405 Howard Street

San Francisco, CA 94105-2669

Telephone: 415-773-5700

Facsimile: 415-773-5759

Attorneys for Defendants

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

HENRY RAMSEUR, Derivatively on behalf 

of CALLIDUS SOFTWARE INC., a 

DELAWARE CORPORATION,

Plaintiff,

v.

GEORGE JAMES, R. DAVID SPRENG, 

TERRY L. OPDENDYK, MICHAEL A. 

BRAUN, JOHN R. EICKHOFF, 

CHRISTOPHER W. CABRERA and REED 

D. TAUSSIG,

Case No. C 04-4419 SI (JCS)

ORDER GRANTING PRELIMINARY 

APPROVAL OF DERIVATIVE 

ACTION SETTLEMENT AND 

DIRECTING MAILING OF NOTICE

Case 3:04-cv-04419-SI Document 68 Filed 08/11/2006 Page 1 of 3
 Case 3:04-cv-04419-SI Document 69 Filed 08/11/06 Page 1 of 3
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US_WEST:260069539.3 - 2 -

ORDER GRANTING PRELIMINARY APPROVAL OF

DERIVATIVE ACTION SETTLEMENT AND DIRECTING

MAILING OF NOTICE

C 04-4419 SI (JCS)

Defendants.

– and –

CALLIDUS SOFTWARE INC., a 

DELAWARE CORPORATION,

Nominal Defendant.

This matter came before the Court on August 11, 2006 for preliminary approval of 

the proposed settlement (the “Settlement”) in this derivative action described in the Stipulation of 

Settlement, dated as of August 11, 2006 and filed with the Court on August 11, 2006.

The Court having read the Stipulation and having concluded that the Settlement 

described in the Stipulation appears, subject to the Final Approval Hearing described below and 

any further papers filed in connection therewith, to be fair, reasonable and adequate and in the 

best interests of Callidus Software Inc. (“Callidus”), and good cause appearing therefor, it is 

hereby ORDERED as follows:

1. Pursuant to Rule 23.1 of the Federal Rules of Civil Procedure 

(“Rule 23.1”), the Court preliminarily approves the Settlement described in the Stipulation, 

subject to further consideration at the Final Approval Hearing described below.

2. A hearing (the “Final Approval Hearing”) shall be held before this Court 

on October __, 2006 at __________ to determine whether the proposed Settlement on the terms 

and conditions described in the Stipulation is fair, reasonable and adequate and is in the best 

interests of Callidus and should be finally approved, and whether the Final Judgment described in 

the Stipulation should be entered. The Court may adjourn the Final Approval Hearing without 

further notice to Callidus shareholders.

3. The Court approves as to form and content the Settlement Notice attached 

as Exhibit C to the Stipulation and directs Callidus, at its expense, to mail the Settlement Notice 

to Callidus shareholders of record on or before August 11, 2006. The Court finds that said 

mailing, and its posting on the investor relations section of the Callidus website, as provided in 

Case 3:04-cv-04419-SI Document 68 Filed 08/11/2006 Page 2 of 3

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9:00 a.m.

Case 3:04-cv-04419-SI Document 69 Filed 08/11/06 Page 2 of 3
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US_WEST:260069539.3 - 3 -

ORDER GRANTING PRELIMINARY APPROVAL OF

DERIVATIVE ACTION SETTLEMENT AND DIRECTING

MAILING OF NOTICE

C 04-4419 SI (JCS)

the Stipulation, constitutes due and adequate notice under Rule 23.1 and satisfies the requirements 

of due process. Not less than five days before the Final Approval Hearing, Callidus shall file with 

the Court and serve on Plaintiffs’ Counsel a declaration attesting that the Settlement Notice was 

duly mailed and posted in accordance with this Order.

4. Pending final determination of whether the Settlement should be approved, 

this action is stayed in all respects other than steps directed to consummation of the Settlement, 

and plaintiff shall not commence or prosecute any action or proceeding on behalf of Callidus or 

against any of the parties to be released by the Stipulation.

5. Any Callidus shareholder may appear at the Final Approval Hearing and 

show cause, if any, why the proposed Settlement should or should not be finally approved; 

provided, however, that no shareholder will be heard unless, at least 10 days before the Final 

Approval Hearing, he or she has filed with the Court a written statement of his or her position, 

together with any supporting papers, showing proof of service of the papers on Juden Justice

Reed and William F. Alderman at the addresses provided in the Settlement Notice. Unless 

otherwise directed by the Court, any Callidus shareholder who has not made an objection to the 

Settlement in the manner described above will be deemed to have waived it.

6. All papers in support of the Settlement shall be filed with the Court and 

served on all counsel no less than seven days prior to the Final Approval Hearing.

Dated: August 11, 2006

United States District Judge

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