Document:

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Exhibit 4.1

LAFARGE NORTH AMERICA INC.

EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated Effective June 1, 2005)

     The Lafarge North America Inc. Employee Stock Purchase Plan (the “Plan”) was originally
adopted by the Board of Directors of Lafarge North America Inc. (“Lafarge”) on February 10, 1988,
and approved by shareholders at the May 4, 1988 annual meeting. On February 10, 1998, the Board of
Directors adopted resolutions approving and recommending to the shareholders for adoption an
amendment to the Plan to increase from 1,000,000 to 2,000,000 the aggregate number of shares of
common stock available for issuance under the Plan and Exchangeable Preference Shares of Lafarge
Canada Inc. (“LCI”) available for issuance under any plan of LCI determined to be comparable to the
Plan and to make certain other changes. This amendment was approved by the shareholders of Lafarge
at the May 5, 1998 annual meeting. Lafarge now desires to amend and restate the Plan to provide
more flexibility in establishing the terms and conditions of offerings made under the Plan and to
make certain other changes. The Plan is hereby amended by restatement in its entirety effective
June 1, 2005 and applies to Offerings made on and after that date.

ARTICLE I.

Purpose and Intent

     1.1 Purpose. The purpose of the Plan is to provide Eligible Employees who wish to become
shareholders of Lafarge a convenient method of doing so. Lafarge believes that participation in
the ownership of the business by employees will be to the mutual benefit of both the employees and
Lafarge.

     1.2 Intent. This Plan document is intended to satisfy the requirements of Section 423 of the
Code. The terms of the Plan will be those set forth in this Plan document to the extent such terms
are consistent with the requirements for qualification under Code Section 423.

ARTICLE II.

Definitions

     2.1 “Account” means an account established by a Participating Company in the name of a
Participant to record the amount accumulated for the Participant as a result of deductions from the
Participant’s paycheck and any lump sum payments made in accordance with Section 5.4 for the
purpose of purchasing shares of Common Stock under the Plan.

     2.2 “Administrative Committee” means the Administrative Committee described in Section 9.1.

     2.3 “Benefit Plan Design Committee” means the Benefit Plan Design Committee appointed by the
Board.

     2.4 “Board” means the Board of Directors of Lafarge.

     2.5 “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

 

     2.6 “Common Stock” means the common stock, $1.00 U.S. par value per share, of Lafarge.

     2.7 “Compensation” means the cash remuneration payable by a Participating Company to a
Participant for personal services rendered to the Participating Company prior to reduction for (i)
any contributions made by a Participating Company on behalf of the Participant pursuant to a
qualified cash or deferred arrangement (within the meaning of Section 401(k) of the Code)
maintained by the Participating Company, (ii) any salary reduction amounts elected by the
Participant for the purchase of benefits pursuant to a cafeteria plan (within the meaning of
Section 125(d) of the Code) maintained by a Participating Company, and (iii) any elective amounts
that are not includible in the gross income of a Participant by reason of Section 132(f)(4) of the
Code, and including overtime, commissions, and bonuses paid pursuant to an established written
bonus plan or program, but excluding allowances, deferred compensation payments and any other
extraordinary remuneration. The Compensation of a Participant who does not receive cash
remuneration computed in United States dollars will be determined by converting the remuneration
into United States dollars in accordance with the Compensation Exchange Rate.

     2.8 “Compensation Exchange Rate” means the New York foreign currency exchange rate as reported
in the Wall Street Journal for the first business day of the month immediately preceding an
Offering Date.

     2.9 “Eligible Employee” means an employee of a Participating Company, other than an employee
whose customary employment is 20 or fewer hours per week or not more than 5 months in any calendar
year. An individual on approved paid or approved unpaid leave of absence for 90 days or less or
who has a statutory or contractual right of continued employment upon expiration of a leave of more
than 90 days is an Eligible Employee for purposes of the Plan.

     2.10 “Enrollment Agreement” means an agreement in a form established by the Administrative
Committee from time to time, pursuant to which an Eligible Employee elects to participate in the
Plan, or elects changes with respect to participation as permitted under the Plan.

     2.11 “Enrollment Period” means the period of time before the beginning of an Offering, as
prescribed by the Administrative Committee.

     2.12 “ESPP Broker” means a stock brokerage firm or other entity, if any, designated by the
Administrative Committee to establish accounts for purposes of holding stock purchased by
Participants under the Plan.

     2.13 “Fair Market Value” means the closing sale price of the Common Stock on the New York
Stock Exchange (or, if the Common Stock is not traded on the New York Stock Exchange, the other
primary trading market for the Common Stock).

     2.14 “Holding Period” means the period of time, if any, following the Purchase Date during
which the Common Stock may not be sold, certificated, pledged, or otherwise transferred by the
Participant. The Holding Period may be established by the Benefit Plan Design Committee, in its
discretion, with respect to any Offering, and may apply to all or a designated portion of the
shares of Common Stock purchased by each Participant in the Offering, subject to Section 11.1.

     2.15 “Lafarge” means Lafarge North America Inc., a Maryland corporation.

     2.16 “LCI” means Lafarge Canada Inc.

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     2.17 “Offering” means an offer extended to Eligible Employees to purchase Common Stock at the
end of an Offering Period through participation in the Plan.

     2.18 “Offering Date” means the first day of an Offering Period on which the New York Stock
Exchange (or, if the Common Stock is not traded on the New York Stock Exchange, the other primary
trading market for the Common Stock) is open.

     2.19 “Offering Period” means the period of time established by the Benefit Plan Design
Committee from time to time for an Offering, beginning on the Offering Date and extending for the
specified period of time; provided, however, that under no circumstances will any Offering Period
exceed 27 months or such other period as may be required under Code Section 423(b)(7).

     2.20 “Participant” means an Eligible Employee who elects to participate in the Plan pursuant
to Section 5.1.

     2.21 “Participating Company” means Lafarge and any Subsidiary that has been designated by the
Administrative Committee as a Participating Company in the Plan. The Administrative Committee will
designate from time to time the Subsidiaries that will be Participating Companies in the Plan. As
of June 1, 2005, the Subsidiaries that are Participating Companies in the Plan are as follows:
Lafarge Midwest, Inc., Lafarge Presque Isle, Inc., Redland Quarries Inc.,
Lafarge Mid-Atlantic, Inc., Lafarge West, Inc., Lafarge Southwest, Inc., Whitestone Supply Co., Whitestone Supply Co. of Lordstown, E.O. Stone Acquisition, Ltd., Lafarge Dakota Inc., Cement
Transport, Ltd., Redland Frontier, Inc., and Systech Environmental Corporation.

     2.22 “Plan” means this Lafarge North America Inc. Employee Stock Purchase Plan.

     2.23 “Purchase Date” is the last day of an Offering Period on which the New York Stock
Exchange (or, if the Common Stock is not traded on the New York Stock Exchange, the other primary
trading market for the Common Stock) is open.

     2.24 “Purchase Price” means the exercise price established by the Benefit Plan Design
Committee with respect to a specific Offering; provided, however, that the Purchase Price may not
be less than the lesser of (i) 85% of the Fair Market Value of the Common Stock on the Offering
Date or (ii) 85% of the Fair Market Value of the Common Stock on the Purchase Date. Subject to the
foregoing, the Benefit Plan Design Committee may establish the Purchase Price with reference to the
Fair Market Value of the Common Stock (or a specified percentage thereof) on one or more dates
during the Offering Period, but it need not be established with reference to Fair Market Value on
both the Offering Date and the Purchase Date.

     2.25 “Restatement Effective Date” means June 1, 2005.

     2.26 “Share Account” means an account established and maintained by the ESPP Broker to hold
the shares of Common Stock purchased pursuant to this Plan for a Participant.

     2.27 “Subsidiary” mean any corporation (other than Lafarge) that is in an unbroken chain of
corporations beginning with Lafarge if, at the time of the granting of a right to purchase Common
Stock, each of the corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in the chain, as described in Code Section 424(f).

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ARTICLE III.

Offering Terms and Conditions

     3.1 Benefit Plan Design Committee to Establish Offering Terms and Conditions. The Benefit
Plan Design Committee will establish the terms and conditions of each Offering in accordance with
the terms of the Plan, including:

     (a) the Offering Period;

     (b) the maximum Fair Market Value or other dollar limit on shares or the maximum
number of shares of Common Stock that may be purchased with respect to the Offering for
each Participant; provided, however, that if a maximum dollar limit is computed in United
States dollars, an equivalent amount will be computed in accordance with the Compensation
Exchange Rate with respect to a Participant whose salary or wages are not computed in
United States dollars; provided, further, that the maximum dollar limit or number of shares
will be established so as not to exceed the limitations under Section 4.2;

     (c) the Purchase Price;

     (d) the methods of payment (payroll deductions and/or lump sum payments) that will be
made available in connection with an Offering; provided, however, that unless otherwise
specified by the Benefit Plan Design Committee, payroll deductions will be the sole means
of accumulating funds in a Participant’s Account;

     (e) the Holding Period, if any; and

     (f) whether to permit excess payments under Section 6.3 to be carried forward to a
subsequent Offering Period.

     3.2 Consistency; Change in Terms and Conditions. The terms and conditions of each Offering
will be applied consistently to all Eligible Employees with respect to the Offering. Once the
terms and conditions are established with respect to an Offering, they will remain in effect with
respect to subsequent Offerings unless expressly changed by the Benefit Plan Design Committee.

ARTICLE IV.

Eligibility

     4.1 General. Except as provided in Section 4.2, an Eligible Employee will be eligible to
enroll and participate in the Plan for a specified Offering if he or she (i) is an employee of a
Participating Company on the Offering Date for the Offering and (ii) continuously meets any other
eligibility requirements under the Plan or as specified by the Benefit Plan Design Committee
through the Purchase Date for that Offering.

     4.2 Limitations. Notwithstanding anything herein to the contrary, (i) no Eligible Employee
will be granted a right to purchase shares of Common Stock under the Plan if the employee,
immediately after the grant, would own shares representing 5% or more of the total combined voting
power or value of all classes of shares of Lafarge or of its parent or subsidiary corporations,
determined in accordance with Code Sections 423(b)(3) and 424(d), and (ii) no

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Eligible Employee will be granted a right to purchase shares of Common Stock under the Plan that
would cause his or her rights to purchase shares under all “employee stock purchase plans” of
Lafarge and its parent or subsidiary corporations to accrue at a rate that exceeds $25,000 of Fair
Market Value of the shares (determined at the time the right to purchase is granted) for each
calendar year in which the right to purchase is outstanding at any time, determined in accordance
with Code Section 423(b)(8).

ARTICLE V.

Participation

     5.1 Initial Enrollment Required; Automatic Re-Enrollment. An Eligible Employee may elect to
become a Participant in an Offering by completing an Enrollment Agreement provided by Lafarge and
submitting it to Lafarge (or another entity designated by Lafarge for this purpose) during the
Enrollment Period related to the Offering. If the Enrollment Agreement is submitted after the
close of the Enrollment Period related to an Offering, it will be effective for the next following
Offering. At the end of each Offering each Participant who continues to be eligible to participate
pursuant to Section 4.1 will be automatically re-enrolled in the next Offering using the same
elections as in effect for the prior Offering, unless the Participant completes a new Enrollment
Agreement during the Enrollment Period for the next Offering. Notwithstanding the foregoing, the
Administrative Committee may require Participants to complete new Enrollment Agreements at any time
it deems necessary or desirable to facilitate Plan administration or for any other reason.

     5.2 Grant of Right to Purchase. Upon the Offering Date, each Participant will be granted the
right to purchase at the Purchase Price a specified dollar amount or number of shares of Common
Stock not exceeding the maximum limit on shares permitted to be purchased under Section 3.1(b).

     5.3 Payroll Deductions. If the Benefit Plan Design Committee has authorized payroll
deductions in connection with an Offering, the following provisions will apply:

     (a) Authorization. Each Participant’s Enrollment Agreement will authorize payroll
deductions each payday in an amount equal to a whole percentage or dollar amount of his or
her Compensation, but not more than the amount required to pay the Purchase Price under the
right to purchase Common Stock granted under Section 5.2. Payroll deductions will begin as
soon as administratively feasible following the Offering Date and will continue until the
Participant’s termination of employment unless (i) the Participant ceases payroll
deductions as provided in Section 5.3(b) or (ii) participation is earlier withdrawn or
suspended by the Participant as provided in Section 7.1.

     (b) Cessation and Resumption of Payroll Deductions. A Participant may instruct
Lafarge to cease payroll deductions, which will be effective on the first payroll date
occurring at least 15 days (or such other period as specified by the Administrative
Committee) after notice to cease deductions is delivered to Lafarge (or its designee).
Notice will be provided by the Participant in a manner consistent with the procedures
specified by the Administrative Committee. A Participant who has ceased payroll deductions
may elect to: (i) withdraw from the Offering in accordance with Section 7.1 or (ii) have
his or her Account maintained through the Purchase Date, at which time the amounts
accumulated the Participant’s Account will be used to pay the Purchase Price upon exercise
of the right to purchase Common Stock under the Offering.

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     5.4 Lump Sum Payments. To the extent that the Benefit Plan Design Committee authorizes lump
sum payments pursuant to Section 3.1(d), a Participant who elects to pay the Purchase Price (or any
portion thereof) by lump sum may tender payment to Lafarge at the time and in the manner specified
by the Administrative Committee, provided that the time of payment is not later than the Purchase
Date.

ARTICLE VI.

Purchase of Stock

     6.1 Participants’ Accounts. Any amounts withheld as payroll deductions from a Participant’s
Compensation during an Offering Period will be allocated to the Participant’s Account, to which
balance will be added any lump sum payment amounts tendered by the Participant under Section 5.4
(to the extent permitted by the terms of a particular Offering). No interest will be paid or
allowed on any amounts allocated to the Accounts of Participants, except to the extent payment of
interest on such amount is required by the laws of any applicable jurisdiction.

     6.2 Exercise of Right to Purchase Common Stock on Purchase Date. If a Participant has not
withdrawn from participation in an Offering on the Purchase Date, the Participant’s right to
purchase Common Stock in connection with the Offering will be exercised automatically by applying
all amounts accumulated in the Participant’s Account to the purchase of Common Stock at the
Purchase Price, subject to applicable limitations under Section 6.4. For purposes of this Section,
the amount accumulated in the Account of a Participant whose salary or wages are not computed in
United States dollars will be converted into United States dollars in accordance with the New York
foreign currency exchange rate as reported in the Wall Street Journal for the Purchase Date.
Lafarge (or its designee) will deliver certificates for the shares of Common Stock or allocate the
shares of Common Stock purchased to the Participants’ Share Accounts as provided in Section 6.5.

     6.3 Excess Payments. Except as described herein, in the event that the sum of a Participant’s
accumulated payroll deductions and, if applicable, any lump sum payment tendered under Section 5.4
exceeds the amount applied to the purchase of Common Stock on the Purchase Date under Section 6.1,
the excess over the aggregate Purchase Price of Common Stock will be refunded to the Participant
within 60 days of the Purchase Date. The Benefit Plan Design Committee may, in establishing the
terms of an Offering as described in Section 3.1, provide that excess amounts accumulated in
Participants’ Accounts will be applied for the purchase of shares of Common Stock in a subsequent
Offering.

     6.4 Limitation. If on any Purchase Date the total number of shares to be purchased would
cause the aggregate number of shares of Common Stock delivered under the Plan to exceed the total
number of shares of Common Stock then available for delivery under the Plan, then the number of
shares to be purchased on the Purchase Date by any Participant will be reduced pro-rata based on
the number of shares for which the Participant’s right to purchase Common Stock would have been
exercised, so that the number of shares purchased by all Participants equals the number of
remaining available shares.

     6.5 Delivery of Shares.

     (a) Delivery to Participants. Unless and until the Administrative Committee has
designated an ESPP Broker, then following the end of each Offering the number of shares of
Common Stock purchased by each Participant will be reflected in Lafarge’s

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books and a certificate for such shares will issued and delivered to the Participant
as soon as practicable following the Holding Period with respect to the Offering.

     (b) Delivery to ESPP Broker. In the event the Administrative Committee has designated
an ESPP Broker, then following the end of each Offering the number of shares of Common
Stock purchased by each Participant will be deposited into a Share Account established and
maintained by the ESPP Broker for the benefit of the Participant.

Notwithstanding the foregoing, the obligation of Lafarge to deliver or deposit the shares of Common
Stock will be postponed for such period of time as may be necessary to register or qualify the
purchased shares under the Securities law of 1933 and any applicable foreign or state securities
law.

     6.6 Stockholder Rights. No Participant will have any right as a shareholder with respect to
any shares until the shares have been purchased in accordance with the Plan and the Common Stock
has been issued by Lafarge. Subject to Section 6.7, upon purchase of shares of Common Stock on
each Purchase Date, a Participant will acquire all the rights and privileges of a stockholder in
Lafarge with respect to the shares of Common Stock issued to him or her, including the right to
direct the vote of the shares on any matter for which the record date for voting is on or after the
Purchase Date and the right to receive any dividend for which the record date is on or after the
Purchase Date. These rights will be subject to the customary terms and conditions applicable to
shares held for customers in a brokerage account, except as otherwise provided by the
Administrative Committee.

     6.7 Transfer and Forfeiture. No Participant may sell, certificate, pledge or otherwise
transfer the shares of Common Stock acquired by him or her under the Plan after the Restatement
Effective Date until after the expiration of the applicable Holding Period, if any, except as
permitted under Offering terms or rules adopted by the Administrative Committee. Shares purchased
under the Plan are non-forfeitable.

     6.8 Removing Shares from the Share Account. In the event a Participant’s shares of Common
Stock are held in a Share Account, after the expiration of the Holding Period, if any, applicable
to shares of Common Stock, the Participant may remove shares from his or her Share Account by (i)
directing the sale of the shares; (ii) directing the issuance and delivery of a share certificate
evidencing the shares; or (iii) if the Administrative Committee so permits, transferring the shares
to another brokerage account, in each case subject to such rules as the Administrative Committee
may establish (which may limit the availability of any of these alternatives so long as some means
for removal of shares is provided). In addition, a Participant’s ability to remove shares from the
Share Account and subsequent transactions in shares may be restricted by the Administrative
Committee for administrative reasons, may be conditioned upon the Participant’s agreement to
promptly disclose his or her subsequent sales or dispositions of the shares and the terms thereof,
and will be subject to Lafarge’s securities compliance and insider trading rules and its code of
conduct. Shares that are sold, shares for which certificates are issued or delivered (other than
to the ESPP Broker or its nominee) or shares that are transferred to another brokerage account will
no longer be deemed held for a Share Account.

     6.9 Dividends Not Held in Share Account. Dividends declared and paid on shares held in a
Participant’s Share Account at the record date for these dividends will be paid directly to the
Participant and will not be held in the Participant’s Share Account.

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ARTICLE VII.

Withdrawal, Termination of Employment and Leave of Absence

     7.1 Withdrawal. A Participant, by giving notice to Lafarge at the time and in the manner
required by the Administrative Committee, may withdraw from the Plan with respect to a specified
Offering. If a Participant withdraws from an Offering: (i) payroll deductions, if any, previously
authorized by the Participant will cease, (ii) the Participants right to purchase Common Stock will
be cancelled and no shares will be purchased for him or her on the Purchase Date for the Offering,
and (iii) all amounts accumulated in his or her Account will be refunded to him or her within 60
days after the Purchase Date related to the Offering. A Participant who has instructed Lafarge to
cease payroll deductions and who, pursuant to Section 5.3(c), receives a refund of the amount
accumulated in his or her Account will be deemed to have withdrawn from the Plan for that Offering.
A Participant’s withdrawal will not have any effect upon his or her eligibility to participate in
any subsequent Offering.

     7.2 Termination of Employment. In the event that a Participant’s employment with a
Participating Company terminates for any reason (including disability, retirement or death), no
further payroll deduction will be made from any Compensation due and owing to the Participant at
that time and the Participant will not be required or permitted to make a lump sum payment under
the Plan. The amount accumulated in the Participant’s Account will be refunded to the Participant
as soon as practicable after the termination date, or, if the Participant is deceased, to the
Participant’s estate in accordance with Section 10.1, within 60 days after the termination date.
In this case, the Participant’s right to purchase Common Stock in connection with an Offering will
terminate at the time of termination of employment, and no shares may be purchased for the
Participant thereafter for any reason. Whether and when a Participant will be deemed to have
terminated employment will be determined by the Administrative Committee in its sole discretion and
may be determined without regard to statutory notice periods or other periods following termination
of active employment.

     7.3 Leave of Absence. The Administrative Committee may adopt rules governing Participants who
take a leave of absence in excess of 90 days (without a statutory or contractual right to return)
or who have other changes in employment status not otherwise covered by this Section, which rules
may specify that the Participants’ participation may be limited or terminated (subject to the
explicit terms of the Plan and the requirements of Code Section 423).

ARTICLE VIII.

Common Stock

     8.1 Number of Shares to be Issued. The maximum number of shares of Common Stock issued under
rights to purchase Common Stock granted under the Plan, when added to the aggregate number of
Exchangeable Preference Shares of LCI issued under options or rights to purchase granted under any
plan of LCI determined by the Administrative Committee to be comparable to this Plan, will not
exceed a total of 2,000,000 shares, subject to adjustment as permitted under Section 8.2. The
Common Stock to be delivered upon exercise of rights to purchase under the Plan may consist of
authorized but unissued shares of Common Stock or shares of Common Stock previously issued and
reacquired by Lafarge.

     8.2 Adjustments Upon Changes in Common Stock. In the event that Lafarge shall effect a split
of the Common Stock or declare a dividend payable in Common Stock, or in the event the outstanding
Common Stock shall be combined into a smaller number of shares, the

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maximum number of shares available under the Plan and the maximum number of shares which may be
purchased in an Offering Period by a Participant under the Plan will be increased or decreased
proportionately. In the event of a reclassification of the Common Stock not covered by the
foregoing or in the event of a liquidation or reorganization of Lafarge, including a merger,
consolidation or sale of assets, the Board will make such adjustments, if any, as it may deem
appropriate in the number, Purchase Price and kind of shares that are covered by rights to purchase
the Common Stock theretofore granted under the Plan or that are otherwise subject to the Plan and
the terms and conditions of an Offering, including, without limitation, closing an Offering early
and permitting purchase on the last business day of such reduced Offering Period, or terminating an
Offering and refunding Participants’ Account balances. The provisions of this Section will only be
applicable if, and only to the extent that, the application thereof does not conflict with Code
Section 423 or any other valid governmental statute, regulation or rule.

ARTICLE IX.

Administration of the Plan

     9.1 Administrative Committee. The Plan will be administered by the Administrative Committee,
which will consist of three or more employees of Lafarge. Each member of the Administrative
Committee will be appointed by and serve at the pleasure of the Board. The Board will have the
sole continuing authority to appoint members of the Administrative Committee both in substitution
for members previously appointed and to fill vacancies however caused. The Administrative
Committee will designate one of its members as Chairman and will hold meetings at such times and
places as it may determine. Each member of the Administrative Committee will be notified in
writing of the time and place of any meeting of the Administrative Committee at least two days
prior to such meeting, provided that this notice may be waived by an Administrative Committee
member. A majority of the members of the Administrative Committee will constitute a quorum and any
action taken by a majority of the members of the Administrative Committee present at any duly
called meeting at which a quorum is present (or action unanimously approved in writing) will
constitute action by the Administrative Committee. The Administrative Committee may appoint a
Secretary (who need not be a member of the Administrative Committee) who will keep minutes of its
meetings. The Administrative Committee may make such rules and regulations for the conduct of its
business as it may determine.

     9.2 Administrative Committee Authority. The Administrative Committee will have full
authority and discretion to construe the terms of the Plan and make factual determinations under
the Plan, and to make, administer and interpret such rules and regulations as it deems necessary to
administer the Plan, and any determination, decision, or action of the Administrative Committee in
connection with the construction, interpretation, administration, or application of the Plan will
be final, conclusive, and binding upon all Participants and any and all persons claiming under or
through any Participant. The Administrative Committee may retain outside entities and
professionals to assist in the administration of the Plan including, without limitation, a vendor
or vendors to perform enrollment and brokerage services. No member of the Administrative Committee
will be liable for any action taken or determination made in good faith with respect to the Plan or
any right to purchase Common Stock granted hereunder.

     9.3 ESPP Broker. The Administrative Committee may appoint an ESPP Broker that will perform
such duties as may be set forth in the Plan or any agreement between Lafarge and the ESPP Broker.

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ARTICLE X.

Amendment and Termination of the Plan

     10.1 Termination. Subject to the right of the Board to terminate the Plan prior thereto, the
Plan will terminate when all of the Common Stock reserved for purposes of the Plan has been
purchased. No Offerings may be made after termination of the Plan.

     10.2 Amendment. The Management Development and Compensation Committee or the Board may alter
or amend the Plan but may not without the approval of the shareholders of Lafarge make any
alteration or amendment thereof which operates (i) to increase the aggregate number of shares of
Common Stock which may be issued under the Plan (other than as provided in Section 8.2) or (ii) to
change the designation of corporations whose employees may participate in the Plan. Prior to the
Restatement Effective Date, Lafarge will provide written notice to the New York Stock Exchange that
it will use the exemption from the New York Stock Exchange shareholder approval requirement with
respect to material amendments made to the Plan. No termination or amendment of the Plan will
adversely affect the rights of a Participant with respect to an Offering, except with the consent
of the Participant.

ARTICLE XI.

Miscellaneous

     11.1 Equal Rights and Privileges. All Participants will have the same rights,
responsibilities and privileges with respect to rights to purchase Common Stock granted and Common
Stock purchased under the Plan, (i) except as limited under Section 4.2, (ii) except that the
amount of Common Stock which may be purchased by any Participant under the right to purchase Common
Stock may bear a uniform relationship to the total compensation, or the basic or regular rate of
compensation, of Participants, and (iii) except as otherwise may be permitted under Section 423 of
the Code.

     11.2 Rights Not Transferable. No Participant will be permitted to sell, assign, transfer,
pledge, or otherwise dispose of or encumber either the payroll deductions accumulated in his or her
Account or a right to purchase Common Stock or any rights with regard to the exercise of a right to
purchase shares of Common Stock or rights to receive shares of Common Stock under the Plan other
than by will or the laws of descent and distribution, and such right and interest will not be
liable for, or subject to, the debts, contracts, or liabilities of the Participant. If any such
action is taken by the Participant, or any claim is asserted by any other party in respect of such
right and interest whether by garnishment, levy, attachment or otherwise, the action or claim will
be treated as an election to withdraw funds in accordance with Section 7.1. During the
Participant’s lifetime, only the Participant can make decisions regarding participation in or
withdrawal from an Offering under the Plan.

     11.3 Tax Obligations. To the extent any (i) grant of a right to purchase shares of Common
Stock hereunder, (ii) purchase of shares of Common Stock hereunder, or (iii) disposition of shares
of Common Stock purchased hereunder gives rise to any tax withholding obligation (including,
without limitation, income and payroll withholding taxes imposed by any jurisdiction), the
Administrative Committee may implement appropriate procedures to ensure that the tax withholding
obligations are met. These procedures may include, without limitation, increased withholding from
a Participant’s current Compensation, cash payments to Lafarge or another Participating Company by
an employee, or a sale of a portion of the Common Stock purchased under the Plan, which sale may be
required and initiated by Lafarge. Any such

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procedure, including offering choices among procedures, will be applied consistently with respect
to all similarly situated Participants in the Plan (or in an Offering under the Plan), except to
the extent any procedure may not be permitted under the laws of the applicable jurisdiction.

     11.4 Notices. All notices or other communications by a Participant to Lafarge or other
entity designated for a particular purpose under or in connection with the Plan will be deemed to
have been duly given when received by Lafarge or other designated entity, or when received in the
form specified by Lafarge at the location, or by the person, designated by Lafarge for the receipt
thereof.

     11.5 Governmental Regulation. Lafarge’s obligation to sell and deliver shares of its Common
Stock under this Plan is subject to the approval of any governmental authority required in
connection with the authorization, issuance, or sale of the shares.

     11.6 No Employment/Service Rights. Nothing in the Plan will confer upon any Eligible
Employee the right to continue in employment for any period of specific duration, nor interfere
with or otherwise restrict in any way the rights of Lafarge (or any Subsidiary employing such
person), or of any Eligible Employee, which rights are hereby expressly reserved by each, to
terminate such person’s employment at any time for any reason, with or without cause.

     11.7 Dates and Times. All references in the Plan to a date or time are intended to refer to
dates and times determined pursuant to U.S. Eastern Time. Business days for purposes of the Plan
are U.S. business days.

     11.8 Masculine and Feminine, Singular and Plural. Whenever used herein, a pronoun will
include the opposite gender and the singular will include the plural, and the plural will include
the singular, whenever the context will plainly so require.

     11.9 Governing Law. This Plan and the respective rights and obligations of the Participating
Companies and the Participants, except to the extent otherwise provided by applicable federal law,
will be construed under the laws of the Commonwealth of Maryland, exclusive of Maryland’s conflict
of laws provisions.

11exv10w31

 

Exhibit 10.31

Employment Agreement by and between Robert H. Youngjohns and Callidus
Software Inc., dated April 26, 2005.

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT (“Agreement”) dated as of April 26, 2005, by and among Callidus Software
Inc., a Delaware corporation (the “Company”), and Robert H. Youngjohns (“Executive”).

     WHEREAS, Executive and the Company desire that Executive’s employment with the Company
commence on the terms and conditions set forth below;

     NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements of
the parties set forth in this Agreement, and of other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows:

ARTICLE 1

Position; Term Of Agreement

     Section 1.01. Position. (a) Commencing on May 31, 2005 (the “Effective Date”), Executive
shall serve as President and Chief Executive Officer of the Company, reporting to the Company’s
Board of Directors (the “Board”). Executive shall have such duties and authority, consistent with
such position, as shall be determined from time to time by the Company and as provided by the
Company’s certificate of incorporation and by-laws.

     (b) During his employment with the Company, Executive will devote substantially all of his
business time to the performance of his duties under this Agreement and will not engage in any
other business, profession or occupation for compensation or otherwise which would conflict with
the rendition of such services either directly or indirectly, without the prior written consent of
the Company’s Board of Directors (the “Board”); provided that the foregoing shall not prohibit the
following activities, so long as such activities do not unreasonably interfere with Executive’s
performance of his duties to the Company hereunder: (i) Executive’s continued service on the board
of directors of netForensics; (ii) service on at least one other board of directors with the
consent of the Board, which shall not be unreasonably withheld; or (iii) participation in civic
activities.

     (c) The Company shall, during the period of Executive’s employment as Chief Executive Officer,
recommend to the Company’s Nominating and Governance Committee that Executive be nominated for
election as a member of the Board at no additional compensation. Upon termination of Executive’s
position for any reason, Executive shall resign from the Board.

 

 

     Section 1.02. Term. The period Executive is employed by the Company under this Agreement
starting from the Effective Date is referred to herein as the “Employment Term”. Nothing contained
in this Agreement shall interfere with the at-will employment status of Executive or with the
Company’s or Executive’s right to terminate Executive’s employment with the Company at any time,
with or without Cause, subject to payment of the benefits provided under Article 3 if applicable.

ARTICLE 2

Compensation And Benefits

     Section 2.01. Base Salary. During the Employment Term, the Company shall pay Executive an
initial base salary (the “Base Salary”) at the annualized rate of $380,000, payable in accordance
with the payroll and personnel practices of the Company from time to time. Executive’s Base Salary
shall be reviewed at least annually by the Board or its Compensation Committee, with any
adjustments made in the discretion of the Board or its Compensation Committee; provided that
downward adjustments shall be made only as part of a proportional adjustment for all Company
officers or with Executive’s consent.

     Section 2.02. Bonus. For each fiscal year during the Employment Term, Executive shall be
eligible to receive an annual or semi-annual incentive bonus if the reasonable performance goals
set by the Board or its Compensation Committee are met. The performance goals shall consist of
Company performance goals determined on an annual or semi-annual basis upon completion by the Board
(including Executive) of the Company’s annual business plan and may also consist of individual
objectives. Executive’s initial annual target bonus shall be 100% of Executive’s Base Salary (the
“Target Bonus”), with the amount of the actual annual bonus ranging between $0 and 200% of the
Target Bonus, based on whether and to what extent the performance goals are met; provided that for
fiscal 2005, Executive’s bonus shall be prorated to reflect the period of Executive’s service
during 2005, with a minimum guaranteed bonus for 2005 of $175,000. The bonus earned for each
fiscal year shall be payable within 60 days after the end of the fiscal year. Executive’s Target
Bonus shall be subject to review for possible upward adjustments in the discretion of the Board or
its Compensation Committee.

     Section 2.03. Equity Incentives.

     (a) Restricted Stock Grant. Executive shall be granted 28,000 shares of restricted stock,
which shall become vested and nonforfeitable on the first anniversary of the Effective Date (the
“Initial Restricted Stock”), subject to Executive’s continued employment with the Company through
such date; provided that if Executive is terminated by the Company without Cause or resigns for
Good Reason before the first anniversary of the Effective Date, a portion of

 

 

the Initial Restricted Stock (determined by multiplying 28,000 by a fraction, the numerator of
which shall be the number of full months served by Executive since the Effective Date and the
denominator of which shall be 12) shall become vested and nonforfeitable.

     (b) Initial Option. Effective on the last day of the month in which the Effective Date
occurs, Executive shall be granted a non-qualified option to purchase 1,000,000 shares of the
Company’s common stock (the “Initial Option”). The Initial Option shall have an exercise price
equal to the fair market value of the Company’s common stock on the grant date and shall vest over
four years, with 25% vesting on the first anniversary of the Effective Date and monthly vesting
thereafter for three years, subject to Executive’s continued employment with the Company through
each such date. Except as set forth herein, the terms of the Initial Option shall be in accordance
with the Company’s stock incentive plan.

     (c) Subsequent Equity Awards. Executive shall be eligible to be considered for one or more
additional equity awards during the Employment Term, as the Board or its Compensation Committee may
deem appropriate in its sole discretion.

     Section 2.04. Benefits. During the Employment Term, Executive shall be eligible for employee
benefit programs (including fringe benefits, vacation and health, accident and disability
insurance, and retirement plan participation) that provide no lesser benefits than those benefits
made available generally to senior executives of the Company. Executive shall accrue at least 20
days of vacation per full calendar year.

     Section 2.05. Expenses. Executive shall be reimbursed for all reasonable business and travel
expenses incurred by Executive in the performance of his duties hereunder, in accordance with the
Company’s reimbursement policies in effect from time to time. In addition, the Company will
reimburse Executive for reasonable and actual expenses related to Executive’s individual income tax
preparation for both the United States and the United Kingdom for calendar years 2005 and 2006, in
an amount not to exceed $10,000 per year.

     Section 2.06. Indemnification. Executive shall be entitled to indemnification from the
Company in accordance with the Company’s by-laws with respect to his period of service with the
Company to the extent permitted by applicable law, and the Company’s standard officer
Indemnification Agreement, which shall be executed by Executive and the Company. In addition,
Executive shall be entitled to full coverage under any Directors and Officers Liability Insurance
Policy maintained by the Company for one or more officers of the Company or members of the Board.

 

 

ARTICLE 3

Termination of Employment

     Section 3.01. Benefits Upon Involuntary Termination or Resignation for Good Reason Prior to a
Change in Control. If Executive’s employment is terminated by the Company without Cause (as
defined below) or by Executive for Good Reason during the Employment Term and prior to a Change in
Control (as defined below), Executive shall be entitled to the following benefits, subject to
Executive signing and not revoking a release of claims in the form attached hereto as Exhibit A:

     (i) The Company shall pay Executive an amount equal to one year of his Base Salary
and Target Bonus.

     (ii) If Executive elects to continue his medical coverage under COBRA, the Company
shall pay for such coverage, at the same cost to Executive as before the termination of
employment, until the end of the 12-month period after the date of termination of
employment.

     (iii) The portion of any outstanding equity awards (including the Initial Option, but
excluding the Initial Restricted Stock) held by Executive which would have become vested
within the six-month period following the date of termination if Executive had continued
employment shall become fully vested.

     Section 3.02. Benefits Upon Termination in Connection with a Change in Control.

     (a) If, during the Employment Term and within one year after a Change in Control, Executive’s
employment is terminated by the Company without Cause or by Executive for Good Reason, Executive
shall be entitled to the following benefits, subject to Executive signing and not revoking a
release of claims in the form attached hereto as Exhibit A and Executive’s continued compliance
with the covenant set forth in clause (b) below:

     (i) The Company shall pay Executive an amount equal to one year of his Base Salary
and Target Bonus.

     (ii) If Executive elects to continue his medical coverage under COBRA, the Company
shall pay for such coverage, at the same cost to Executive as before the termination of
employment, until the end of the 12-month period after the date of termination of
employment.

     (iii) 50% of the unvested portion of any outstanding equity awards (including the
Initial Option and the Initial Restricted Stock) held by Executive shall become fully
vested.

 

 

     (b) In his capacity as a selling stockholder of the Company upon a Change in Control,
Executive’s continued receipt of the benefits under clause (a) shall be subject to Executive
refraining from competing with the business of the Company (as it existed at the time of
Executive’s termination of employment) for a period of 12 months after termination of his
employment; provided that Executive shall not be considered to be competing if he is engaged in
employment, consulting or other work relationships with an entity in which 90% or more of the gross
revenues are derived from noncompetitive business activity so long as Executive’s duties are not
primarily in the division of such entity that is engaged in the competitive business.

     (c) Within the first year of Executive’s employment, the Board or its Compensation Committee
shall review the benefits under clause (a)(iii) above and whether, in its sole discretion, to
increase such benefits.

     Section 3.03. Excise Taxes.

     (a) In the event it shall be determined that any compensation by or benefit from the Company
to Executive or for Executive’s benefit, whether pursuant to the terms of this Agreement or
otherwise (collectively, the “Payment”), would be subject to the excise tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”), or any similar provision or any
interest or penalties with respect to such excise tax (such excise tax, together with any such
interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), an
additional lump-sum payment (a “Gross-Up Payment”) in an amount determined by the Company’s outside
auditors such that after payment by Executive of all taxes (including any interest or penalties
imposed with respect to such taxes) imposed upon the Gross-Up Payment, including any Excise Tax,
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payment; provided that (i) the amount of the Gross-Up Payment shall in no event exceed $700,000 and
(ii) if the aggregate value of the Payment is less than $100,000 greater than the product of “3”
times Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code) (such product, the
“Golden Parachute Threshold”), then Executive shall not be entitled to any Gross-Up Payment and,
instead, the Payment shall be reduced to an amount equal to $1.00 less than the Golden Parachute
Threshold.

     (b) Unless the Company and Executive otherwise agree in writing, any determination required
under this Section shall be made in writing by the Company’s independent accountants or such other
nationally recognized public accounting firm approved by the Company and Executive (the
“Accountants”), whose determination shall be conclusive and binding upon the Executive and the
Company for all purposes. For purposes of making the calculations required by this Section, the
Accountants may make reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999
of the

 

 

Code. The Company and Executive shall furnish to the Accountants such information and
documents as the Accountants may reasonably request in order to make a determination under this
Section. The Company shall bear all costs the Accountants may reasonably incur in connection with
any calculations contemplated by this Section.

     Section 3.04. Definitions.

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

     (i) any material act of misconduct or dishonesty by Executive in the performance of
his duties hereunder;

     (ii) any willful and material failure by Executive to perform his duties under the
Agreement;

     (iii) any material breach of this Agreement or the Confidentiality Agreement;

     (iv) Executive’s 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), Executive 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) “Change in Control” shall mean the first of the following to occur:

     (i) a merger, consolidation or reorganization approved by the Corporation’s
stockholders, unless securities representing more than 50% of the total combined voting
power of the outstanding voting securities of the successor corporation are immediately
thereafter beneficially owned, directly or indirectly and in substantially the same
proportion, by the persons who beneficially owned the Company’s outstanding voting
securities immediately prior to such transaction;

     (ii) the sale, transfer or other disposition of all or substantially all of the
Company’s assets as an entirety or substantially as an entirety to any person, entity or
group of persons acting in consort other than a sale, transfer or disposition to an
entity, at least 50% of the combined voting power of the voting securities of which is
owned by the Company or by stockholders of the Company in substantially the same
proportion as their ownership of the Company immediately prior to such transaction;

     (iii) any transaction or series of related transactions pursuant to which any person
or any group of persons comprising a “group” within the

 

 

meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) (other than the Company or a person that, prior to such transaction
or series of related transactions, directly or indirectly controls, is controlled by or is
under common control with, the Company) becomes directly or indirectly the beneficial
owner (within the meaning of Rule l3d-3 of the Exchange Act) of securities possessing (or
convertible into or exercisable for securities possessing) more than 35% of the total
combined voting power of the Company’s securities outstanding immediately after the
consummation of such transaction or series of related transactions, whether such
transaction involves a direct issuance from the Company or the acquisition of outstanding
securities held by one or more of the Corporation’s stockholders; or

     (iv) a change in the composition of the Board over a period of 36 consecutive months
or less such that a majority of the Board ceases to be comprised of Incumbent Directors;
provided that “Incumbent Directors” shall mean individuals who either (A) have been Board
members continuously since the beginning of such period or (B) have been elected or
nominated for election as Board members during such period by at least a majority of the
Incumbent Directors at the time of such election or nomination.

     (c) “Good Reason” shall mean any of the following:

     (i) any reduction in the Executive’s Base Salary or annual Target Bonus, except as
provided in the proviso to Section 2.01;

     (ii) any material reduction in Executive’s other benefits, except as provided in the
proviso to Section 2.01;

     (iii) any material reduction in Executive’s duties, responsibilities, or authority;
or

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

     Section 3.05. Offsets. The benefits pursuant to this Article 3 shall be in lieu of any
severance benefits under any plans, programs, policies or practices of the Company and shall be
reduced by any amounts due, or notice period required, under the WARN Act or other applicable law.

ARTICLE 4

Covenants and Representations

     Section 4.01. Confidentiality and Non-Disclosure Agreement. Contemporaneously herewith,
Executive has executed the Company’s standard

 

 

form of proprietary information agreement in the form attached hereto as Exhibit B (the
“Confidentiality Agreement”). Executive shall comply with the obligations under the
Confidentiality Agreement during and after the Employment Term.

     Section 4.02. Non-Solicitation. Without limiting the foregoing, Executive agrees, during and
for a period of 12 months after the end of any termination of his employment with the Company, not
to directly or indirectly solicit, induce, recruit, or encourage any of the Company’s employees to
leave their employment, or take away such employees, or attempt to solicit, induce, recruit,
encourage or take away employees of the Company, either for Executive or for any other person or
entity.

     Section 4.03. Material Inducement; Specific Performance. If any provision of this Agreement
or the Confidentiality Agreement is determined by a court of competent jurisdiction not to be
enforceable in the manner set forth herein or therein, the Company and Executive agree that it is
the intention of the parties that such provision should be enforceable to the maximum extent
possible under applicable law and that such court shall reform such provision to make it
enforceable in accordance with the intent of the parties.

     Section 4.04. Executive Representation. Executive expressly represents and warrants to the
Company that Executive is not a party to any contract or agreement and is not otherwise obligated
in any way, and is not subject to any rules or regulations, whether governmentally imposed or
otherwise, which will or may restrict in any way Executive’s ability to fully perform Executive’s
duties and responsibilities under this Agreement.

ARTICLE 5

Successors And Assignments

     Section 5.01. Assignments. Except for an assignment in the event of a change in control or
an assignment to an affiliate of the Company, this Agreement shall not be assignable by the Company
without the written consent of Executive. This Agreement shall not be assignable by Executive.

     Section 5.02. Successors; Binding Agreement. This Agreement shall inure to the benefit of
and be binding upon personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees, and legatees.

 

 

ARTICLE 6

Miscellaneous

     Section 6.01. Notices. Any notice required to be delivered hereunder shall be in writing and
shall be addressed:

     (i) if to the Company, to:

160 West Santa Clara Street

Suite 1500

San Jose, CA 95113

Attention: Chairman of the Compensation Committee (c/o Corporate Secretary)

	 	(ii)  	if to Executive, to Executive’s last known address as reflected on the
books and records of the Company;

or, in each case, to such other address as such party may hereafter specify for the purpose by
written notice to the other party hereto. Any such notice shall be deemed received on the date of
receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such
day is a business day in the place of receipt. Otherwise, any such notice shall be deemed not to
have been received until the next succeeding business day in the place of receipt.

     Section 6.02. Attorneys’ Fees. The Company shall reimburse Executive for actual attorney
fees incurred in negotiating and finalizing this Agreement, in an amount not expected to exceed
$10,000. The Company shall pay such amount directly to Executive’s attorneys promptly upon receipt
of an invoice for such attorney fees.

     Section 6.03. Dispute Resolution. (a) Any dispute or controversy arising out of or relating
to any this Agreement shall be settled by arbitration to be held in Santa Clara County, California,
in accordance with the rules then in effect of the American Arbitration Association. The
arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of
the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment
may be entered on the arbitrator’s decision in any court having jurisdiction. The Company shall
pay the AAA costs and expenses of such arbitration in excess of administrative fees that Executive
would be required to pay if the dispute were decided in a court of law. The prevailing party shall
be entitled to reimbursement of all reasonable attorneys’ fees incurred in connection with such
arbitration.

     Section 6.04. Entire Agreement. This Agreement (together with the Confidentiality Agreement)
represents the entire agreement between Executive and the Company and its affiliates with respect
to the matters referred to herein, and supersedes all prior discussions, negotiations, and
agreements concerning such matters.

 

 

     Section 6.05. Tax Withholding. Notwithstanding anything in this Agreement to the contrary,
the Company shall withhold from any amounts payable under this Agreement all federal, state, city,
or other taxes as are legally required to be withheld.

     Section 6.06. Waiver Of Rights. The waiver by either party of a breach of any provision of
this Agreement shall not operate or be construed as a continuing waiver or as a consent to or
waiver of any subsequent breach hereof.

     Section 6.07. Amendment. This Agreement may not be modified, altered or changed except upon
the express written consent of both parties.

     Section 6.08. Severability. In the event any provision of this Agreement shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining
parts of this Agreement, and this Agreement shall be construed and enforced as if the illegal or
invalid provision had not been included.

     Section 6.09. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of California without reference to principles of conflict of laws.

     Section 6.10. Counterparts. This Agreement may be signed in several counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were on
the same instrument.

[Remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement, to be effective as of the day
and year first written above.

	 	 	 	 	 	 	 
	 	 	CALLIDUS SOFTWARE INC.
	 
	 	 	 	 	 	 
	 	 	By	 	/s/ Brian E. Cabrera
	 	 	 	 	 
	

	 	 	 	Name:
	 	Brian E. Cabrera
	

	 	 	 	Title:
	 	VP, Corporate Development &
	

	 	 	 	 	 	General Counsel
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 	 	 
	 	 	/s/ Robert H. Youngjohns
	 	 	 
	 	 	Robert H. Youngjohns

 

 

Exhibit A

RELEASE AND WAIVER OF CLAIMS

     In consideration of the severance payments and other benefits to which I have become entitled,
pursuant to that certain Employment Agreement between Callidus Software Inc., a Delaware
corporation (the “Company”), and myself dated April 26, 2005 (the “Employment Agreement”), in
connection with the termination of my employment on this date, I, Robert Youngjohns, hereby furnish
the Company with the following release and waiver (“Release and Waiver”).

     I hereby release and forever discharge the Company, its officers, directors, agents,
employees, stockholders, successors, assigns and affiliates from any and all claims, liabilities,
demands, causes of action, costs, expenses, attorney fees, damages, indemnities and obligations of
every kind and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected,
disclosed and undisclosed, arising from or relating to my employment with the Company and the
termination of that employment, including (without limitation) claims of wrongful discharge,
emotional distress, defamation, fraud, breach of contract, breach of the covenant of good faith and
fair dealing, discrimination claims based on sex, age, race, national origin, disability or any
other basis under Title VII of the Civil Rights Act of 1964, as amended, the California Fair
Employment and Housing Act, the Federal Age Discrimination in Employment Act of 1967, as amended
(“ADEA”), the Americans with Disability Act, contract claims, tort claims, and wage or benefit
claims, including but not limited to, claims for salary, bonuses, commissions, stock grants, stock
options, vacation pay, fringe benefits, severance pay or any other form of compensation (other than
(i) the payments, rights, benefits and indemnification to which I am entitled under the express
provisions of the Employment Agreement and the Company’s Indemnification Agreement, (ii) my vested
rights, if any, under the Company’s 401(k) plan and (iii) any worker’s compensation benefits under
any Company workers’ compensation insurance policy or fund).

     In releasing claims unknown to me at present, I am waiving all rights and benefits under
Section 1542 of the California Civil Code, and any law or legal principle of similar effect in any
jurisdiction:

     “A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known by him
must have materially affected his settlement with the debtor.”

     This Release and Waiver does not pertain to any claims which may subsequently arise in
connection with the Company’s default in any of its
payment or indemnification obligations under the Employment Agreement or the Company’s
Indemnification Agreement.

A-1

 

     I acknowledge that, among other rights subject to this Release and Waiver, I am hereby waiving
and releasing any rights I may have under ADEA, that this release and waiver is knowing and
voluntary, and that the consideration given for this release and waiver is in addition to anything
of value to which I was already entitled as an executive of the Company. I further acknowledge
that I have been advised, as required by the Older Workers Benefit Protection Act, that:

     (a) the release and waiver granted herein does not relate to claims which may arise after this
release and waiver is executed;

     (b) I have the right to consult with an attorney prior to executing this release and waiver
(although I may choose voluntarily not to do so);

     (c) I have twenty-one (21) days from the date of termination of my employment with the Company
in which to consider this release and waiver (although I may choose voluntarily to execute this
release and waiver earlier);

     (d) I have seven (7) days following the execution of this release and waiver to revoke my
consent to this release and waiver; and

     (e) this release and waiver shall not be effective until the seven (7)-day revocation period
has expired.

	 	 	 	 	 	 
	 	Signed:
	 	 
	 	 
	 	 	 	 	 	 
	 	Date:	 	 	 	 

A-2

 

Exhibit B

Form of Proprietary Agreement

A-3

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