Callidus On-Demand provides leading-edge sales performance management solutions via the web, enabling customers to focus on their business objectives without technical infrastructure concerns. With over 66,000 subscribers and high reliability credentials, it supports diverse industries and offers comprehensive technical and business operations management. Callidus ensures data privacy and security, with compliance certifications and exceptional uptime rates.

1. Callidus On-Demand Jeffrey Saling October 2008

2. Mission To deliver Callidus Software ’ s leading-edge Sales Performance Management solutions over the web. … and … To deliver those solutions without any customer concern about technical infrastructure - allowing our customers to focus on their own business objectives.

3. Callidus On-Demand: Key Stats & Facts Fastest Growing On-Demand SPM / PPM vendor Over 66,000 subscribers / 55 Customers in 2 years Special programs for migration into OnDemand Most widely used Payees and customers in 135 countries around the world Highly Private & Secure Safe Harbor (European Union) certified for data privacy and security SAS70 / SOX (US) Compliant Extraordinarily Reliable Documented uptime of 99.5+% exceeds industry standard service level agreements Fully Featured Only On-Demand / SaaS SPM provider with functionality & tools for Incentive plan calculation & pay Fully secure reporting for payees Analytics & Query tools for administrators and managers Producer / Agent Administration for Insurance Customers Certified on AppExchange Integrated with Salesforce.com

4. Service Level Offerings - Options Technical Operations: Application Hosting & Data Center Provide Hardware Provide 3 rd Party Software Provide Data Center Mgmt Application Management Environment Management Issue Escalation / Resolution Upgrades & Migration Business Operations: Comp Plan Administration Process Management Optional Services: Workflow Services: Payee Self-Service Data Management MBO Management Producer / Agent Mgmt Services Business Operations - Compensation Plan Administration - Payee Dispute Resolution Technical Operations - Application & Infrastructure Management - Business Continuity

5. Premised vs. On-Demand IT Model Permutations of revision levels for each layer of the stack Traditional Premised Model From IT Management to Business Management On-Demand Model j Application Business Application USER Web / App Server Database Operating System Hardware USER

6. On-Demand Architecture Landscape Application Complexity Cost to Deliver Privacy / Security Level Configurable, mission-critical applications (Callidus On-Demand) Commoditized applications and tools (Salesforce.com) Virtual Tenancy Multi-tenant, Separate Database Multi-tenant/ Single Version Heavily customized, version-controlled, dependent applications (Oracle) Managed Hosting Service

7. On-Demand Reduces TCO The Cost to manage software is four times the purchase price of the software per year Source: The End of Software – Dr. Timothy Chou Microsoft said: “the initial purchase is usually only 5% of the total cost of owning and maintaining a program” On-premise Software Acquisition 1x Maintenance Security / Privacy Performance Change Management Hardware Third Party SW Implementation Costs Upgrades (SW & HW) TCO (total cost of Ownership) 1x 4x 3x 2x On-Demand On-Premise 1-2x

8. Who else uses Callidus On-Demand? Life Sciences High Technology Financial Services The statistics : More than 66,000 payees / 55+ companies 135 countries around the world Proven Reliable (99.97%) and Scalable 105MM transactions / 80k positions (Aug) YTD comp calc’d@ $1B+ (Aug) SAS70 Type II Certified Media & Comm

9. Appendix: Deeper Offering(s) Detail

10. Callidus On-Demand Details Technical Operations: Callidus provides all the necessary hardware, software and support needed to fully utilize the TrueComp ® Enterprise Suite. Enterprise hardened data center System and Network operations All software licenses needed Application operations Data backup Technical support New release migration Traditional Premised Solution Business Operations: Complete producer and incentive management outsourcing. Callidus provides personnel for setup, maintenance, and day-to-day producer and incentive management operations under the direction of your sales, sales ops and finance organizations Business Application Application and Business Users Web / App Server Database Operating System Hardware

11. On-Demand Technical Operations Annual On-Demand Service Technical Operations Includes: Data Center : Hardware / Network Operations Center Callidus Components : TrueComp ® Manager, TrueInformation ® , TrueAnalytics™ Optional : TrueProducer™, TrueResolution ® Third Party Software : OS, DB, WebServer, Actuate, Informatica, Hosting Services : @ TechOps Service Level as follows: Data Center Provision: Hardened Class A+, Tier IV Production Server / HW Environment Provision Platinum Support 24x7 with 2 hour response Storage Devices: Raid 5 or better Security Provision: Physical Location and Data Security Firewall / Network Security Services / Intrusion Detection Secure Data File Transfer Back-up / Recovery Services 24x7 System Administration & Monitoring, 24x7 Network Administration & Monitoring, 24x7 Firewall Administration & Monitoring 24x7 VPN (if required) Monitoring Application / Software Installation & Upgrades Application Administration Standard SLA package Environment Change management Documentation of all change requests - CHIPs Peer review of proposed change Change approval Auditing to make sure all tasks are covered Version control Review audit log Plan Move to production (MTP) from Development Provide MTP documentation to customer Obtain UAT confirmation/approval for MTP MTP of compensation plans & Plan elements Unit / Integration Testing Unit test ODI (data integration / ETL) enhancements Unit test hot fixes Quality assurance for patches/fixes Project plan for system integration test Access control Audit LDAP and proxy access LDAP maintenance Problem management Repository for known bugs/issues/limitations Coordinate tech tickets - manage assignment process Provide Callidus tech support / engineering with information and support issue resolution

12. On-Demand Business Operations (1 of 3) Payee / Agent Administration Updating, editing and managing Agent information including: Agent demographics Agent contracts Agent license and appointments Agent hierarchies Agent schedules Other Payee / Agent Customer Service Responding to agent calls regarding: Agent contracting questions/issues Agent compensation questions/issues Tracking and logging call details Provide call center reports on periodic basis Compensation Issue Resolution Resolving pipeline errors and determining impact to payments Investigate compensation related issues Resolving participant payment issues Pipeline debugging Pipeline maintenance Includes On-Demand Technical Operations Production Comp plan maintenance Plan Letter / Report maintenance Adjustments Updates to setup data via UI Complete manual requests Pipeline processing Comp Plan Change management Documentation of all changes Peer review change Change approval Change management controls Version control Review audit log End-User

13. On-Demand Business Operations (2 of 3) Production Comp plan maintenance Plan Letter / Reports maintenance Adjustments Updates to setup data via UI Complete manual requests Pipeline processing Data Issue Identification/Correction Conform customer data files into stock ODI format or stage table format Review template for auto upload of territories Create territories exception template Staging titles Resolve / trouble shoot data issues in custom tables Troubleshooting of validate transfer issues Staging variable assignments Defining / update useful ODI errors/warnings for customer specific data Troubleshooting of ODI errors-determine cause to pass to tech ops Data load troubleshooting (resulting from data errors) Add data integration functionality to upload IPL transactions Improve IPL notification process Includes On-Demand Technical Operations Understand Customer Define new services to be offered to support payees Trained on specific customer business & related comp plans (non generalist) Provide named direct contact(s) for customer Provide Account management function for customer Prioritize release upgrades and engineering requests from Customer perspective Customer transition from dev to ops Manage, prioritize and level work load of BusOps team Help prioritize tech ops activities around customer's production schedule Define Roles and Expertise for Each Team Member Internal skill development Expected level of expertise List of accomplished tasks and abilities

14. On-Demand Business Operations (3 of 3) Enhancements & QA QA reporting generated results QA comp results Comp/reporting enhancements Share best practices in plan design Development of small scale comp changes Measure comp plan effectiveness Suggest new / improved comp designs Re-engineer slow performing comp designs UAT Create test plan for user acceptance testing Supporting administering customer UAT Internal training - career progression into specialties Secondary Application Maintenance/Design Portal design and maintenance TA report extension and maintenance TR maintenance and extension TP maintenance TI report extension and maintenance Handbook Integrate operations processes into handbook Modify customer handbook for new customer Update customer handbooks with changes Includes On-Demand Technical Operations

15. High Level Tech Ops Customer Support Model Callidus Tech Operations Support Application experts Business process expertise Business-specific expertise / knowledge Use of applications in business environment Data content problem resolution Participant in application Release-to-Production process Application troubleshooting and resolution of 95% of end-user support requests Production process monitoring / application event detection and resolution Problem resolution of issues related to business process or application Super-User / Business Operations Trained or “peaked” in application understanding Participant in user acceptance testing / validation Provides end-user support Funnel for enhancement requests Knowledgeable of problem escalation process Business process expertise Prioritizes support requests SUN Production/Platform Support Coordination Systems/network expertise Production monitoring / event detection Problem resolution of issues not related to business process, data, or application. Callidus Help Desk / Call Center / Email On-Demand first point of contact Problem or request characterizing Call tracking, routing Ticket Additional assistance 2 nd Level support 3 rd Level Support 1 st Level Support End-User Technical Support Deep systems and application support and problem resolution Critical patch creation / distribution New Business Rqmts and enhancements Liaison to R&D

16. Service Level Expectations * The business hours are defined in your service level agreement, and could designate up to 24x7 coverage. The minimum business hours coverage option is 11x5.

17. Appendix: Technology Detail

18. Growth over 8 Quarters - Payees