Take a look at the  http://jqueryui.com/demos/dialog/#modal-form 
Modal Form demo. 

There is a function that fires when a user clicks the buttons.

There is a function that fires when the modal is open, and closed. (And 
many other "Events" you can tie functions to)

A callback function is simply an event based function. So that when 
something happens you can tie a function to that event.

Study the demo. Try it out. If you have questions ask them.

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