Document:

exv10w3

Exhibit 10.3

RealNetworks, Inc. CEO Compensation Program –MBO Plan Document (Chief Executive Officer)

Objective of the Plan

The objective of the RealNetworks’ FY 2008 Chief Executive Officer MBO Incentive Plan is to reward
the Chief Executive Officer for his contribution to the Company’s success. RealNetworks has
adopted this plan to reward high performance consistent with our core business objectives.

Effective Date

The effective date of this Plan is January 1, 2008 – December 31, 2008.

Target Goals

Target goals for the plan will be based upon revenue and EBITDA plan goals for the fiscal year.

The target MBO amount will be allocated as follows across these goals:

	 	 	 	 	 
	 	 	Corporate
	Exec Level	 	Revenue	 	EBITDA
	Chief Executive Officer
	 	50.0%
	 	50.0%

MBO Payout Mechanics

Revenue:

	 	•	 	Revenue – in order to maintain consistent revenue growth year over year, performance
under 90% of the revenue target goal will not be rewarded.

Revenue Target Example

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
	Attainment	 	Incentive Payout	 	Actual Attainment	 	Actual Payout
	< 90%
	 	No Payout	 	 	75%	 	 	No Payout
	90% - 100%
	 	 	40% - 100	%	 	 	98%	 	 	 	88%	 
	>100% - 110%
	 	Up to 400%	 	 	110%	 	 	 	400%	 

EBITDA:

	 	•	 	EBITDA attainment will be paid out linearly to a maximum of 400% with a threshold for
payout set at 50% attainment.

EBITDA Target Example

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
	Attainment	 	Incentive Payout	 	Actual Attainment	 	Actual Payout
	< 50%
	 	No Payout	 	 	49.5%	 	 	No Payout
	50% - 100%
	 	 	25% - 100	%	 	 	98%	 	 	 	97%	 
	>100% - 150%
	 	Up to 400%	 	 	150%	 	 	 	400%	 

Terms and Conditions

	 	•	 	MBO calculations will be completed and payments will be made on or before March 15,
2009, except in the event that any portion of the cash bonus award exceeds 100% of the
target payout. Any portion of the cash bonus award that exceeds 100% of the target payout
will be paid in three equal installments as follows: (a) the first installment will be
paid concurrently with the payment of the 100% target payout on or before March 15, 2009;
(b) the second installment will be paid on December 31, 2009; and (c) the third installment
will be paid on December 31, 2010.
	 
	 	•	 	You must be employed by RealNetworks on the date payments are made in order to be
eligible to receive payment under the plan, except in the case of death, permanent
disability or termination of employment by RealNetworks other than for cause. In the event
the Company terminates you other than for cause, you will be eligible to receive any earned
but unpaid amounts under the plan.

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	 	•	 	Notwithstanding any other provision of the plan, the Compensation Committee, in its sole
discretion, may increase, reduce or eliminate the participant’s award at any time before it
is paid, whether or not calculated on the basis of pre-established performance goals or
formulas.
	 
	 	•	 	The Compensation Committee has all power and discretion to interpret and administer the
Plan, including (but not limited to) the size of any payouts.
	 
	 	•	 	The Compensation Committee reserves the right to adjust targets/measurements based on
acquisition or disposition of businesses/assets.

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EXHIBIT 10.25

Executive Change of Control Agreement – Full Double-Trigger

[Date]

[Name]

[Title]

Callidus Software Inc.

Dear                    :

This letter modifies any Stock Option Agreement or Restricted Stock Unit Agreement or other
agreement documenting any equity award (as applicable, any “Equity Award Agreement”) or Employment
Agreement you may now or hereafter have with respect to the common stock of Callidus Software Inc.
(the “Company”) and any prior agreement between you and the Company regarding the Equity Award
Agreements including, without limitation, any prior change of control agreement(s). This letter
provides for accelerated vesting of your Callidus stock options, restricted stock awards,
restricted stock units and other equity-based awards, as applicable (collectively, the “Equity
Awards”) under the conditions described below.

If, within 18 months after a “Change in Control,” your employment is terminated by the Company
without “Cause” or by you for “Good Reason,” you shall receive 100% vesting of your Equity Awards.

Section 409A. Notwithstanding anything to the contrary in this Agreement, if you are determined to
be a “specified employee” within the meaning of Section 409A of the Internal Revenue Code, as
amended (“Section 409A”) and the regulations thereunder, as of the date of your “separation from
service” as defined in Treasury Regulation Section 1.409A-1(h) (or any successor regulation), and
if any payments or entitlements provided for in this Agreement constitute a “deferral of
compensation” within the meaning of Section 409A and therefore cannot be paid or provided in the
manner provided herein without subjecting you to additional tax, interest or penalties under
Section 409A, then any such payment and/or entitlement which would have been payable during the
first six months following your “separation from service” shall instead be paid or provided to you
in a lump sum payment on the first business day immediately following the six-month anniversary of
your “separation from service”. If this payment has had to be deferred in this way for six months
after your separation from service, then the lump sum payment will also include interest on the
deferred payment or payments at a per annum rate equal to the highest rate of interest not
exceeding 4% applicable to six-month money market accounts on the date of such “separation from
service” offered by the following institutions: Citibank N.A., Wells Fargo Bank, N.A. or Bank of
America. Except for the foregoing interest payment, nothing in this Section shall increase the
amount due under this Agreement or otherwise from the Company to you. In addition, any payments or
benefits due hereunder upon a termination of your employment which are a “deferral of compensation”
within the meaning of Section 409A shall only be payable or provided to you (or your estate) upon
(or, to the extent provided for in this paragraph, following the six-month anniversary of) your
“separation from service” as defined in Section 409A.

     For purposes of the above:

     (a) “Cause” means the occurrence of any one or more of the following:

     (i) any material act of misconduct or dishonesty by you in the performance of your
duties;

     (ii) any willful and material failure by you to perform your duties;

     (iii) any material breach of any employment agreement, confidentiality agreement or
proprietary information agreement;

     (iv) your conviction of (or pleading guilty or nolo contendere to) a misdemeanor
involving theft, embezzlement, dishonesty or moral turpitude or a felony; provided that in
the case of clauses (i) through (iii), you shall have a period of 30 days from written
notice by the Company to cure such action or omission unless not reasonably susceptible of
cure.

 

 

     (b) “Good Reason” means:

     (i) any reduction in your base salary or annual target bonus;

     (ii) any material reduction in your other benefits;

     (iii) any material reduction in your duties, responsibilities, or authority; or

     (iv) a requirement that you relocate to a location more than 35 miles from your then
current office location.

     (c) “Change in Control” means:

     (i) The acquisition by any “person” (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act) of “beneficial ownership” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing fifty percent (50%) or
more of the total voting power represented by the Company’s then outstanding voting
securities (it being understood that securities owned by any person on the date hereof shall
not be counted against such limit with respect to such person); or

     (ii) A change in the composition of the Board of Directors of the Company (the “Board”)
occurring within a rolling 2 year period, as a result of which fewer than a majority of the
directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either
(A) are members of the Board as of the date hereof, or (B) are elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of the Incumbent
Directors at the time of such election or nomination (but shall not include an individual
not otherwise an Incumbent Director whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the Board); or

     (iii) A merger or consolidation involving the Company other than a merger or
consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the Surviving Entity (including the parent
corporation of such Surviving Entity)) at least fifty percent (50%) of the total voting
power represented by the voting securities of the Company or such Surviving Entity
outstanding immediately after such merger or consolidation, or a sale or disposition by the
Company of all or substantially all the Company’s assets.

The term “Surviving Entity” shall refer to the entity surviving the merger, consolidation or sale
of substantially all of the assets and continuing with the assets or business of the Company in the
case of a Change of Control event described in clause (iii) above.

The modification to the terms of the vesting schedule of your Equity Awards as described in this
letter has been approved by the Board and is effective immediately.

Sincerely,

[Insert Officer Name]

[Insert Officer Title]

AGREED AND ACCEPTED this ____ day of                     20__.

	 	 	 
	 
	 	 
	 

[Name]

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