Document:

CALD-EX10.1_2013.09.30-Q3

EXHIBIT 10.1

2013  Sales Compensation Plan                                                                      April 1, 2013 to December 31, 2013

Name:        Jimmy Duan    
Role:        SVP, Chief Technology Officer
ID#:        1096
Manager:    Leslie Stretch

Threshold/Quotas     Q1’13        Q2’13        Q3’13        Q4’13        2013 Totals
Services Revenue:         $   4,800,000    $  5,100,000    $  5,200,000    $  5,600,000    $20,700,000
Services Margin:             $      151,000    $     782,000    $     780,000    $      784,000    $  2,497,000
RR Gross Margin:            $12,957,000    $13,039,000    $14,379,000    $15,890,000    $56,265,000

Base rates 
Services Revenue:            0.23%
Services Margin:                 1.92%
RR Gross Margin:             0.17% 

Accelerators
Services Revenue (>$22,770,000):        0.46%
Services Margin (>$2,747,000):         3.84%
RR Gross Margin (>$61,891,000):         0.34% 

Note: Payout is Quarterly.

 1.    What is Commissionable?
The following are all commissionable and subject to exclusions and carve-outs as noted in Sections II, III, and IV.

A    Services Revenue: Reported Quarterly Services Revenue.

B.    Services Margin (Retained Recurring): Reported Quarterly Services Gross Margin. 

C.    Recurring Revenue Gross Margin: Reported quarterly Recurring Revenue Gross Margin.

2. Threshold/Quota Attainment:
Threshold/Quota is attained by aggregating the plan year’s attainment for each plan component.  Threshold/Quota is achieved when the YTD value of each plan component reaches the Threshold/Quota number assigned to the participant 
3. Commission
Commission Definitions

A.    Services revenue rate is the base commission rate that will be paid on all applicable reported services revenue and is paid on a quarterly basis.

B.    Services margin Rate is the commission rate paid on reported services gross margin and is paid on a quarterly basis. 

B.    Recurring Revenue Gross Margin rate is the commission rate paid on reported Recurring Revenue gross margin and is paid on a quarterly basis. 

4.  Terms of Payment:
Earned Commissions and Bonuses will be paid in the following month's ending payroll following quarter end (e.g. Q1’13 earnings paid in Apr-13). Participant must be an employee of Callidus at the time commissions are earned.
5.  General Terms:
		
	A.
	Modification and Interpretation: Callidus reserves the right to modify this Plan at will, with or without notice. In the event of conflict of interpretation, the judgment of the Vice President, Sales, and the CFO of Callidus, acting in concert shall be final and binding.

		
	B.
	Performance: Any sales representative who maintains two consecutive quarters of no Threshold/Quota attainment is subject to discipline up to and including termination.

		
	C.
	No Employment Agreement: This Plan is not to be construed in any way to be any form of employment agreement and I understand and acknowledge that my employment with the company is "at-will," which means that my employment is for no definite period and may be terminated by me or by the Company at any time for any reason, with or without good cause and with or without advance notice. I also understand that any representation to the contrary is unauthorized and invalid unless obtained in a writing signed by an officer of the Company.

		
	D.
	Termination: All compensation including base salary, commissions, TCV commissions for customers not yet paid, and bonuses will cease to be earned on the last day of work. Only expenses incurred during employee's employment will be reimbursed by Callidus Software. If employment terminates or is terminated for any reason whatsoever, Callidus Software will forward a statement of commission account to the participant within thirty (30) days after the effective date of such termination. This statement will be accompanied by a check for commissions earned up to the date of termination. All clawbacks for which the participant is responsible (inclusive of recoverable draws), and all outstanding expenses owed to Callidus Software by the participant will be netted against commissions and all other monies then owing or accruing.

		
	E.
	Mandatory Arbitration: I further agree that the Company and I are required to submit to binding arbitration any claim that relates to the termination of my employment or claims of harassment, discrimination or retaliation that occurs during my employment, and that we each waive our rights to trial by jury of such claims. This agreement applies to any claim relating to my employment that the Company may have against me, or any claims relating to the termination of my employment or claims of harassment, discrimination or retaliation that occurs during my employment that I may have against the Company or against its officers, directors, employees or agents. The agreement to arbitrate does not, however, relate to claims by me or the Company for preliminary injunctive relief. Any arbitration commenced pursuant to this agreement shall take place in Santa Clara County, California, and shall proceed according to the National Rules for the Resolution of Employment Disputes of the American Arbitration Association ("AAA") in effect at the time the claim is submitted. This agreement in no way limits the relief to which I would otherwise be entitled in a judicial action, and the Company shall pay the arbitrator's expenses and fees, all meeting room charges and any other expenses that would not have been incurred if the case had been brought in court, where required by law. The arbitrator's written opinion and final award, including findings of fact, shall be subject to judicial review as provided in California Code of Civil Procedure section 1285.

6. Acknowledgement:

Approving this compensation plan by signing below indicates that you have read, understand and agree to the terms and conditions of this compensation plan.

Name:    Jimmy C. Duan________
 
Signed:    /s/ JIMMY C. DUAN       
 
Date:    October 28, 2013CALD-EX10.2_2013.09.30-Q3

EXHIBIT 10.2

April 30, 2013 

Robert L. Corey
3726 Smallwood Ct.
Pleasanton, CA  94566

Dear Bob:

Congratulations, it is with great pleasure that I extend you an offer to join my team as Senior Vice President, Chief Financial Officer. You will report directly to me.  This position will commence no later than May 31, 2013.

Your starting salary will be $350,000.00 per year, which equals $29,166.67 per month, subject to periodic review. In addition, you will be eligible to participate in the Company’s annual executive incentive compensation plan of 60% of your base salary which is based upon Company performance.

The Company will also provide you a one-time lump sum sign on bonus equal to $40,000 (subject to applicable taxes and withholdings). The sign on bonus will be paid with your first payroll following your start date.  

As a further incentive, you will be granted a non-qualified option to purchase 122,000 shares of Callidus Software Inc. common stock subject to the terms and conditions of the Company’s stock plan, and the Company’s policies and procedures. Such Option shall be granted effective as of the last business day of the month in which you commence your employment with the Company (“Grant Date”) and shall vest over a period of four (4) years with 25% of the shares vesting one (1) year after the Grant Date and the remaining 75% of the shares vesting in equal monthly installments thereafter over the remaining three (3) years, subject to your continued employment with the Company.    

In addition, you will be awarded 122,000 shares of restricted stock units, subject to the terms and conditions of the Company’s stock plan and the Company’s policies and procedures.  Such RSUs shall be awarded effective on the last trading day of the month in which you commence your employment with the Company (the "Award Date") and such RSUs shall vest over a period of
two (2) years with vesting in quarterly installments starting on August 30, 2013 and will continue over the vesting period. Vesting will occur on the last business day of the month in August, November, February and May. Vesting on all stock awards are subject to your continued employment with the Company. 

As a new member of executive management team, you be classified as a Section 16 officer of Callidus, and that you should therefore be granted benefits in connection with a corporate change of control and indemnification in the case of litigation.  Copies of our Board approved Change of Control Agreement and Indemnification Agreement are included for your review and execution. You will need to execute and return these agreements for them to become effective.

As a Section 16 officer, you will be subject to CallidusCloud’s stock ownership policy which requires you to hold a value of Callidus Software Inc. stock of at least one (1) times your annual base salary.  For purposes of determining compliance with the Ownership Policy, the aggregate value of the shares required to be owned from each applicable year shall be determined as the Record Date for the Company’s annual meeting of stockholders, (the “Determination Date”) based on the higher of: (a) the price the shares were acquired or (b) market value, with market value determined as the average daily closing price of the Company’s common stock over the twelve (12) calendar months immediately preceding the Determination Date.  In calculating share ownership, shares underlying unexercised stock options will not be included, while 65% of unvested restricted stock unites (estimating next after tax shares assuming a 35% tax rate) will be included.   Under the guidelines you have up to three (3) years to attain the ownership holding guideline amount.

As a regular, full-time employee, you are eligible to participate in CallidusCloud’s benefits programs, including medical, vision, and dental insurance, life insurance, 401(k) and ESPP plans, as set forth in our CallidusCloud Benefits Guidebook.  

 This offer is conditional upon the completion of your background check and credit history. This said, you have been advised, understand, and agree that this offer is contingent on our satisfaction of the outcome of the background check and credit history. This offer is also contingent upon your completing and executing an Employment, Confidential Information and Invention Assignment Agreement (“Invention Agreement”). 

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. Should you be involuntarily terminated other than for cause at any time, you shall receive a twelve (12) month base pay severance payment (lump sum), in return for signing a full release of claims.

Upon separation from the Company for any reason, you also agree to return to the Company any equipment that has been provided to you.  

For purposes of federal immigration law, you will be required to provide to Callidus documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three business days of your date of hire with Callidus, or our employment relationship with you may be terminated for cause.  Additionally, the company requests that you participate in our direct deposit payroll program.

Bob, on behalf of CallidusCloud, we very much look forward to your acceptance of this offer. This letter contains all the terms and conditions of your offer of employment and any modification or variation shall be invalid unless in writing and signed by the Company. This letter replaces any and all prior verbal or written communications and representations between you and Company. As evidence of your acceptance, please sign the letter and return along with the signed Invention Agreement via e-mail to Cindy Eppard, Senior Vice President, Chief Talent Officer ceppard@calliduscloud.com. Should you wish to fax your acceptance, you may do so to Cindy Eppard at (925) 251-2371 or by U.S. mail to: CallidusCloud, Attn: Cindy Eppard, 6200 Stoneridge Mall Road, Suite 500, Pleasanton, CA 94588 no later than Wednesday, May 1, 2013 by 12:00 pm PDT

I look forward to working with you at CallidusCloud. If you have any questions regarding any points in this letter please feel free to contact me.  Welcome aboard!

Sincerely,

/s/ Leslie Stretch

Leslie Stretch
President and Chief Executive Officer
CallidusCloud

I accept the terms of this letter and agree to keep the terms of this letter confidential. I agree to start work for Callidus Software on: 5/31/13 ("Start Date").

/s/ Bob L. Corey                                                 May 1, 2013              
Signature of Robert Corey                             Date

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