Document:

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                                                                   EXHIBIT 10.12

[CALLIDUS SOFTWARE LETTERHEAD]

November 15, 2001

Mr. Robert Warfield
3470 Merrill Rd
Aptos, California 95003

Dear Bob:

I am pleased to offer you the position of Vice President Engineering reporting
to me on or before December 1, 2001.

Your starting salary will be $16,667 per month, subject to periodic review.
Additionally, you will participate in an incentive compensation plan based upon
the attainment of certain goals and objectives to be established by the Company.
Your target incentive earnings under this plan will be $40,000.00 per year.

As a further incentive, I will recommend to the Board of Directors that you be
granted an option to purchase 430,000 shares of Callidus Software, Inc. common
stock at $0.50 (fifty cents) per share subject to the vesting schedule and terms
and conditions of the Company's stock plan. Additionally, I will recommend to
the Board of Directors that you be granted an additional 220,000 options at such
time as the company files for an Initial Public Offer or is purchased by a
qualified buyer for price equal to or greater than $6.67 per share. Twenty-five
percent (25%) of the second grant shares shall immediately vest upon an IPO or
purchase event and the remainder of the shares shall vest over a three-year
period. The company will extend to you a loan to purchase the shares as of the
date of grant per the terms and conditions as generally offered to other members
of the executive staff of Callidus Software.

In the event that the majority interest of the company is acquired you will be
provided accelerated stock vesting terms equal to 50% of your then unvested
stock options. The specific terms and conditions of this provision will be
provided to you under a separate agreement.

Benefits, Payroll, and other human resource management services are provided
through the TriNet Employer Group, Inc. TriNet is an employer service
organization contracted by Callidus Software to perform selected employer
responsibilities on our behalf. As a result of the Company's arrangement with
TriNet, TriNet will be considered your employer of record for payroll, benefits,
and other functions involving employer related administration. You will also
become eligible to participate in the Callidus Software, Inc. 401(k) Plan
effective on the first day of the month following your employment start date. As
part of your new employee orientation, you will receive an Employee Handbook.

The Company is an "at will" employer, which means that the employment
relationship may be terminated at any time by either the Company or by you, with
or without notice and with or without cause. By signing below, you acknowledge
that your employment at Callidus is for an unspecified duration, and neither
this letter, nor your acceptance thereof, constitutes a contract of employment.

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In lieu of your position Callidus agrees to extend to you six months of
severance pay equal to your base salary plus benefits in the event you are
terminated for reasons other than cause. You will be provided 15 days of annual
vacation as well as all other benefits normally provided by Callidus Software.

In accordance with the Company's standard policy, this offer is contingent upon
your completing and executing an Employment, Confidential Information and
Invention Assignment Agreement.

Bob, on behalf of the board of directors of Callidus, we very much look forward
to your acceptance of this offer. I have enclosed two executed copies of this
offer letter. As evidence of your acceptance, please sign both copies and return
one original to me no later than November ______.

Sincerely,

/s/ Reed D. Taussig
-------------------
Reed D. Taussig
President and CEO

Agreed and Accepted: /s/ Robert Warfield                Date: 11/15/01
                     ---------------------

                                       2<PAGE>

                                                                   EXHIBIT 10.13

[CALLIDUS SOFTWARE LETTERHEAD]

May 10, 2003

Mr. Bertram W. Rankin
340 Arboleda Drive
Los Altos, California 94024

Dear Bert:

I am pleased to offer you the position of Senior Vice President Worldwide
Marketing reporting to me effective on or before June 2, 2003.

Your target compensation as Vice President Worldwide Marketing shall be $270,000
per year. For the year ending December 31, 2003 your compensation as Vice
President Worldwide Marketing shall be pro-rated to reflect your start date.
Your 2003 compensation plan shall consist of a base salary of $16,667 per month,
a quarterly bonus of up to $10,000, calculated against specific departmental
objectives and effective for the quarters ending September 30, 2003 and December
31, 2003, and an annual bonus of $15,000 based on the terms and conditions of
the 2003 Executive Bonus Plan as stipulated by the Compensation Committee of the
Callidus Board of Directors. In order to be eligible for the executive bonus the
company must achieve at least 80% of the board approved FY/03 year end cash plan
or EBITDA plan. The bonus calculation shall be a pro-rata calculation using
either the percentage of achievement of the year end cash plan or EBITDA plan,
whichever is higher. The calculation of the bonus shall be as follows:

Annual Pro-rated Financial Bonus = ($15,000) (%* Cash Flow) or (%*EBITDA)
whichever is higher. This bonus shall be capped at 125% of the target payout
($18,750).

For the quarter ending September 30, 2003 Callidus Software will guarantee your
quarterly bonus.

In lieu of your position Callidus agrees to extend to you six months of
severance pay equal to your base salary plus benefits in the event you are
terminated for reasons other than cause.

As a further incentive I will recommend to the Board of Directors that you be
granted an option to purchase 300,000 shares of Callidus Software, Inc. common
stock subject to the vesting schedule and terms and conditions of the Company's
stock plan. In the event the company is acquired the Company will agree to
forward vest 50% of your outstanding options granted to you at that time.

The Company is an "at will" employer, which means that the employment
relationship may be terminated at any time by either the Company or by you, with
or without notice and with or without cause. By signing below, you acknowledge
that your employment at Callidus is for an unspecified duration, and neither
this letter, nor your acceptance thereof, constitutes a contract of employment.

In accordance with Callidus' standard policy, this offer is contingent upon your
completing and executing an Employment, Confidential Information and Invention
Assignment Agreement ("Invention Agreement") and upon your providing the Company
with the legally required proof of your identity. The Company also requires
proof of eligibility to work in the United States.
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Bert, on behalf of myself, the management team and the board of directors of
Callidus Software we very much look forward to your acceptance of this offer. I
have enclosed two executed copies of this offer letter. As evidence of your
acceptance, please sign both copies and return one original to me no later than
Tuesday May 13, 2003.

Sincerely,

/s/Reed D. Taussig
------------------
Reed D. Taussig
President and CEO

Agreed and Accepted: /s/ Bert Rankin                  Date: 5/11/03
                     -----------------

                                       2<PAGE>

                                                                   EXHIBIT 10.14

[CALLIDUS SOFTWARE LETTERHEAD]

August 30, 2002

Mr. Ron J. Fior
341 Arlington Road
Redwood City, California 94062

Dear Ron:

I am pleased to offer you the position of Vice President Finance and Chief
Financial Officer reporting to me on or before September 16, 2002.

Your starting salary will be $16,667 per month, subject to periodic review.
Additionally, you will participate in an incentive compensation plan based upon
the attainment of certain goals and objectives to be established by the Company.
Your target incentive earnings under this plan will be $50,000 per year which
for the year ending December 31, 2002 will consist of quarterly bonuses of
$10,000 per quarter and a $10,000 annual bonus. During the quarter ending
December 31, 2002 the Company agrees to pay you the full $10,000 quarterly bonus
in recognition of your service during that quarter.

As a further incentive I will recommend to, the Board of Directors that you be
granted an option to purchase 275,000 shares of Callidus Software, Inc. common
stock subject to the vesting schedule and terms and conditions of the Company's
stock plan with the added modification that the Company agrees to waive the
provisions of a first year cliff vesting on the initial grant and agrees that
all shares of the initial grant shall vest on a 1/48th basis effective the date
of the grant.

In the event the company is acquired the Company will agree to forward vest 50%
of your outstanding options granted to you at that time. Additionally, the
company will extend to you a loan to purchase the shares as of the date of grant
per the terms and conditions as generally offered to other members of the
executive staff of Callidus Software.

In lieu of your position Callidus agrees to extend to you six months of
severance pay equal to your base salary plus benefits in the event you are
terminated for reasons other than cause. You will be provided 15 days of annual
vacation as well as all other benefits normally provided by Callidus Software.

The Company is an "at will" employer, which means that the employment
relationship may be terminated at any time by either the Company or by you, with
or without notice and with or without cause. By signing below, you acknowledge
that your employment at Callidus is for an unspecified duration, and neither
this letter, nor your acceptance thereof, constitutes a contract of employment.

In accordance with Callidus' standard policy, this offer is contingent upon your
completing and executing the agreement regarding Employment, Confidential
Information, Invention Assignment and Arbitration Agreement ("Invention
Agreement") and upon your providing the Company with the legally required proof
of your identity.
<PAGE>

Ron, on behalf of myself, the management team and the board of directors of
Callidus Software, we very much look forward to your acceptance of this offer. I
have enclosed two executed copies of this offer letter. As evidence of your
acceptance, please sign both copies and return one original to me no later than
Tuesday September 3, 2002.

Very truly yours,

/s/ Reed D. Taussig
-------------------
Reed D. Taussig
President and CEO

Accepted: /s/ Ron Fior
          ------------
          Ron Fior

Date:     Sept 16, 2002

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