Document:

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                                                                 EXHIBIT 10.27.1

                          AMENDMENT TO RIGHTS AGREEMENT

     This Amendment dated as of September 28, 2004 (the "AMENDMENT"), to the
Rights Agreement (the "RIGHTS AGREEMENT"), dated as of September 2, 2004,
between Callidus Software Inc., a Delaware corporation (the "Company"), and
American Stock Transfer & Trust Company, as Rights Agent (the "RIGHTS AGENT"),
is being executed at the direction of the Company, by and between the Company
and the Rights Agent. Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to such terms in the Rights Agreement.

     WHEREAS, the Company wishes to supplement and amend the Rights Agreement,
as permitted by Section 23 thereof;

     NOW, THEREFORE, in consideration of the foregoing and the agreements,
provisions and covenants contained in this Amendment, each of the Company and
the Rights Agent agrees as follows:

          1.   Amendments to Rights Agreement.

               (a)  Clause (iv) of the proviso to the definition of "ACQUIRING
          PERSON" contained in Section 1(a) of the Rights Agreement is hereby
          amended and restated in its entirety as follows:

                    "(iv) Crosspoint Venture Partners 1997, L.P., Crosspoint
               Venture Partners LS 1999, Crosspoint Venture Partners LS 2000,
               Crosspoint Venture Partners 2000 Q, L.P. and Crosspoint Venture
               Partners 2000, L.P. (collectively, "CROSSPOINT") together with
               its Affiliates and Associates, shall not be an "Acquiring
               Person", so long as Crosspoint and its Affiliates and Associates
               do not Beneficially Own or become the Beneficial Owner of in
               excess of 6,850,000 shares of Common Stock, other than shares of
               Common Stock that Crosspoint or its Affiliates or Associates
               becomes the Beneficial Owner of pursuant to a dividend or
               distribution paid or made by the Company on the outstanding
               Common Stock or pursuant to a split or subdivision of the
               outstanding Common Stock."

          2.   Effective Date. This Amendment shall become effective as of the
     day and year first written above. Except as modified by this Amendment, the
     Rights Agreement shall remain in full force and effect without any
     modification.
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          3.   Certification Pursuant to Section 23 of the Rights Agreement. The
     certificate referred to in Section 23 of the Rights Agreement stating that
     this Amendment is in compliance with the terms of the Rights Agreement has
     been executed by an appropriate officer or director of the Company and is
     attached as Annex A hereto.

          4.   Inconsistencies. In the event of a conflict or inconsistency
     between this Amendment and the Rights Agreement and the exhibits thereto,
     the provisions of this Amendment shall govern.

          5.   Counterparts. This Amendment may be executed in counterparts,
     each of which shall constitute an original and all of which, when taken
     together, shall constitute one agreement.

                               [SIGNATURES FOLLOW]

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         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed and delivered as of the day and year first written above.

                       CALLIDUS SOFTWARE INC.

                       By:  /s/ Ronald J. Fior
                            -----------------------------------------
                            Name:   Ronald J. Fior
                            Title:  Vice President, Finance and Chief
                                    Financial Officer

                       AMERICAN STOCK TRANSFER & TRUST COMPANY

                       By:  /s/ Herbert J. Lemmer
                            -----------------------------------------
                            Name:   Herbert J. Lemmer
                            Title:  Vice President

                                       3
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                                                                        ANNEX A

                             CALLIDUS SOFTWARE INC.

                       CERTIFICATE PURSUANT TO SECTION 23
                             OF THE RIGHTS AGREEMENT

     I, Ronald J. Fior, Vice President, Finance and Chief Financial Officer of
Callidus Software Inc., a Delaware corporation (the "COMPANY"), do hereby
certify pursuant to Section 23 of the Rights Agreement (the "RIGHTS AGREEMENT")
dated as of September 2, 2004, between the Company and American Stock Transfer &
Trust Company, as Rights Agent, that the proposed amendment to the Rights
Agreement dated September 28, 2004 is in compliance with the terms of the Rights
Agreement.

     IN WITNESS WHEREOF, I have signed this certificate.

Dated: September 28, 2004

                                By:
                                    -----------------------------------------
                                    Name:   Ronald J. Fior
                                    Title:  Vice President, Finance and Chief
                                            Financial Officer

                                       4<PAGE>

                                                                   EXHIBIT 10.30

                          [6 MONTHS ENDING 12/31/2004]
                       FORM OF EXECUTIVE COMPENSATION PLAN

                             CALLIDUS SOFTWARE INC.

I. POSITION AND GENERAL TERMS:

          PLAN PARTICIPANT:

          TITLE:

          EFFECTIVE DATES: [July 1, 2004 - December 31, 2004]

II. BASE COMPENSATION AND TARGET INCENTIVES:

          BASE SALARY:

          SEMI-ANNUAL/ANNUAL TARGET BONUS:  [Target bonus is based on a
                                            percentage of base salary; actual
                                            bonuses may range between zero and
                                            100% of base salary.]

          TARGET COMPENSATION:

III. TERMS OF PAYMENT:

          The participant's base salary is paid semi-monthly per the terms and
          conditions of Callidus Software's normal payroll period.

          Earned bonuses will be reviewed and approved by the Callidus Software
          Board of Directors Compensation Committee ("Compensation Committee")
          and will be paid immediately upon written authorization and approval
          of that committee.

IV. ADVANCES AGAINST ANNUAL BONUSES:

          No draws or advances against annual bonuses are anticipated under this
          plan.

V. BONUS FOR ACHIEVING APPROVED CORPORATE GOALS.

          All persons on the Callidus Executive Staff will be eligible to
          receive a [semi-annual or annual] bonus based on quantitative
          corporate goals. For the [relevant bonus period], the target bonus is
          set forth above. All bonuses will be reviewed and approved by the
          Compensation Committee and will be paid immediately upon written
          authorization and approval by that committee.

          In order to be eligible for the executive bonus the company must
          achieve 100% of the board-approved revenue or bookings targets, as
          determined by the Compensation Committee during the bonus period
          ("Plan"). The bonus calculation shall be a pro-rata calculation using
          the percentage of achievement of the Plan. The Plan will be determined
          by the Compensation Committee.

          Bonus Period Financial Bonus = ($ ) (%* Target Plan)

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          The bonus will be capped at 200% of the target bonus.

VI. GENERAL TERMS AND CONDITIONS:

          A. MODIFICATION AND INTERPRETATION:

          This plan may only be modified by the President of Callidus Software
          in conjunction with the Compensation Committee. Callidus Software
          reserves the right to modify this plan at will with or without notice.
          In the event of conflict of interpretation the judgment by the
          president of Callidus Software shall be final and binding.

          B. NO EMPLOYMENT AGREEMENT:

          This Plan is not to be construed in any way to be any form of
          employment agreement and in no way limits the right of Callidus to
          terminate the employment of a participant in the Plan at any time,
          with or without cause. Your employment with the Company is and
          continues to be employment "at-will" with either party having the
          right to terminate this relationship and Plan at any time. The laws of
          the State of California, excluding choice of law principles, govern
          this Plan.

          C. MANDATORY ARBITRATION:

          The parties agree that any controversy or claim arising out of or
          relating to this Plan shall be finally determined by mandatory
          arbitration. The arbitration shall be conducted in accordance with the
          American Arbitration Association ("AAA"). The proceeding will take
          place in San Jose, California. The fees of the arbitrator and the
          expenses incident to the arbitration proceedings shall be borne
          equally by the Parties. The prevailing party shall be entitled to
          reasonable attorneys' fees and costs. All other expenses shall be
          borne by the party incurring such expenses. If the Parties cannot
          agree on a single arbitrator to hear the dispute, the AAA shall name
          the arbitrator.

Approved:   ________________________________
            [Name, Title]

Date:       ________________________________

Approved:   ________________________________
            David Pratt, President and CEO

Date:       ________________________________

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