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|   | “(a) | If      Company or a successor corporation terminates Executive’s employment for      any reason other than Cause (as defined below) or if Executive resigns for      Good Reason (as defined below) then Company or the successor corporation      will (1) pay prorated bonuses for any partially completed bonus periods      through Executive’s termination date (at an assumed 100% on-target      achievement of goal), less any applicable state and federal required      withholding amounts and other lawful deductions, (2) pay six (6) months of      Executive’s Base Salary at the rate in effect at the time of Executive’s      resignation or termination of employment, less any applicable state and      federal required withholding amounts and other lawful deductions, and (3)      if Executive elects to continue Executive’s health insurance coverage      under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”)      following such termination or resignation of Executive’s employment, pay      the same portion of Executive’s monthly premium under COBRA as it pays for      active employees until the earliest of (i) the close of the 6 month      period following the termination of Executive’s employment, (ii) the      expiration of Executive’s continuation coverage under COBRA, or (iii) the      date when Executive becomes eligible for substantially equivalent health      insurance coverage in connection with new employment or      self-employment. |
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|   | (b) | If      Company or a successor corporation terminates Executive’s employment for      any reason other than Cause (as defined below) or if Executive resigns for      Good Reason (as defined below) and either such event takes place within      one year following a Change in Control (as defined below), then Company or      the successor corporation will (1) pay prorated bonuses for any partially      completed bonus periods through Executive’s termination date (at an      assumed 100% on-target achievement of goal), less any applicable state and      federal required withholding amounts and other lawful deductions, (2) pay      twelve (12) months of Executive’s Base Salary at the rate in effect at the      time of Executive’s resignation or termination of employment, less any      applicable state and federal required withholding amounts and other lawful      deductions, (3) pay bonuses (at an assumed 100% on-target achievement of      goal) at the rate in effect at the time of Executive’s resignation or      termination of employment for a period of 12 months from the date of      Executive’s resignation or termination of employment (bonuses will be      prorated for any partially completed bonus periods through the 12 month      period from the date of Executive’s resignation or termination of      employment, less any applicable state and federal required withholding      amounts and other lawful deductions, and (4) if Executive elects to      continue Executive’s health insurance coverage under the Consolidated      Omnibus Budget Reconciliation Act (“COBRA”) following such termination or      resignation of Executive’s employment, pay the same portion of Executive’s      monthly premium under COBRA as it pays for active employees until the      earliest of (i) the close of the 12 month period following the termination      of Executive’s employment, (ii) the expiration of Executive’s continuation      coverage under COBRA, or (iii) the date when Executive becomes eligible      for substantially equivalent health insurance coverage in connection with      new employment or self-employment. |
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|   | (c) | All      benefits set forth in Sections 7(a) and 7(b) are collectively referred to      as “Severance.”  Subject to Section 8(a) and to any required six      (6) month delay pursuant to Section 15, Severance payments, other than      reimbursements of COBRA premiums, shall be made by the Company in one lump      sum and shall be paid within thirty (30) days of any such termination of      employment.” |
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|   | “(a) | Separation Agreement      and Release of Claims.  The receipt of any severance      pursuant to this Agreement will be subject to Executive signing and not      revoking a separation agreement and release of claims (the “Release”) in a      form reasonably acceptable to the Company which becomes effective within      sixty (60) days following Executive’s employment termination date or such      earlier date as required by the Release (such deadline, the “Release      Deadline”).  The Release will provide (among other things) that      Executive will not disparage the Company, its directors, or its executive      officers, and will contain No-Inducement, No-Solicit and Non-Compete terms      consistent with this Agreement.  No severance pursuant to this      Agreement will be paid or provided until the Release becomes      effective.  Notwithstanding any timing of payment provision in      Section 7, in the event severance payments provided under Section      7(a) or Section 7(b) would be considered Deferred Payments (as defined in      Section 15 below), then the following timing of payments will apply to      such Deferred Payments, in each case subject to any delay in payment      required by the provisions of Section 15 (and provided the Release becomes      effective): |
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|   | (i) | If      the Release Deadline is on or before December 10 of the calendar year in      which Executive’s “separation from service” (within the meaning of      Section 409A of the Internal Revenue Code of 1986, as amended,      and any final regulations and official guidance promulgated thereunder      (together, “Section 409A”)) occurs, any portion of the severance      payments or benefits provided under Section 7(a) or Section 7(b) that      would be considered Deferred Payments will be paid to Executive on or      before December 31 of that calendar year or such later time as required by      Section 15 of this Agreement, if applicable;and |
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|   | (ii) | If      the Release Deadline is after December 10 of the calendar year in which      Executive’s “separation from service” (within the meaning of      Section 409A) occurs, any portion of the severance payments or      benefits provided under Section 7(a) or Section 7(b) that would      be considered Deferred Payments will be paid on the first payroll date to      occur during the calendar year following the calendar year in which such      separation of service occurs or such later time as required by      (A) the Release Deadline, or (B) Section 15 of this Agreement,      if applicable.” |
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|   | (a) | Notwithstanding      anything to the contrary in this Agreement, no severance payments or      benefits payable to Executive, if any, pursuant to this Agreement that,      when considered together with any other severance payments or separation      benefits, is considered deferred compensation under Section 409A      (together, the “Deferred Payments”) will be payable until Executive has a      “separation from service” within the meaning of Section      409A.  Similarly, no severance payable to Executive, if any,      pursuant to this Agreement that otherwise would be exempt from Section      409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be      payable until Executive has a “separation from service” within the meaning      of Section 409A. |
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|   | (b) | Further,      if Executive is a “specified employee” within the meaning of      Section 409A at the time of Executive’s separation from service      (other than due to death), any Deferred Payments that otherwise are      payable within the first six (6) months following Executive’s separation      from service will become payable on the first payroll date that occurs on      or after the date six (6) months and one (1) day following the date of      Executive’s separation from service.  All subsequent Deferred      Payments, if any, will be payable in accordance with the payment schedule      applicable to each payment or benefit.  Notwithstanding anything      herein to the contrary, in the event of Executive’s death following      Executive’s separation from service but prior to the six (6) month      anniversary of Executive’s separation from service (or any later delay      date), then any payments delayed in accordance with this paragraph will be      payable in a lump sum as soon as administratively practicable after the      date of Executive’s death and all other Deferred Payments will be payable      in accordance with the payment schedule applicable to each payment or      benefit.  Each payment and benefit payable under the Agreement      is intended to constitute a separate payment for purposes of Section      1.409A-2(b)(2) of the TreasuryRegulations. |
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|   | (c) | Any      severance payment that satisfies the requirements of the “short-term      deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury      Regulations shall not constitute Deferred Payments for purposes of the      Agreement.  Any severance payment that qualifies as a payment      made as a result of an involuntary separation from service pursuant to      Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not      exceed the Section 409A Limit shall not constitute Deferred Payments for      purposes of the Agreement.  For purposes of this subsection (c),      “Section 409A Limit” will mean the lesser of two (2) times: (i)      Executive’s annualized compensation based upon the annual rate of pay paid      to Executive during the Company’s taxable year preceding the Company’s      taxable year of Executive’s separation from service as determined under      Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal      Revenue Service guidance issued with respect thereto; or (ii) the maximum      amount that may be taken into account under a qualified plan pursuant to      Section 401(a)(17) of the Code for the year in which Executive’s      employment is terminated. |
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|   | (d) | The      foregoing provisions are intended to comply with the requirements of      Section 409A so that none of the severance payments and benefits to be      provided under the Agreement will be subject to the additional tax imposed      under Section 409A, and any ambiguities herein will be interpreted to so      comply.  Executive and the Company agree to work together in      good faith to consider amendments to the Agreement and to take such      reasonable actions which are necessary, appropriate or desirable to avoid      imposition of any additional tax or income recognition prior to actual      payment to Executive under Section409A.” |
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| KATY      MURRAY |   | TALEO      CORPORATION |   |
|------------------|--------|------------------------|--------|
|             |   |                   |   |
|             |   |                   |   |
| /s/ Katy Murray  |   | /s/ Josh Faddis        |   |
| Signature        |   | Signature              |   |
|             |   |                   |   |
| Katy Murray      |   | Josh Faddis            |   |
| Print      Name  |   | Print      Name        |   |
|             |   |                   |   |
|             |   | VP, Legal              |   |
|             |   | Print      Title       |   |

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