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|   | “(a) | Termination Without      Cause or Resignation for Good Reason.  If Executive’s      employment is terminated by the Company without Cause or by Executive for      Good Reason, then, subject to Section 7, Executive will receive: (i) a      lump-sum payment equal to Executive’s then annual Base Salary, paid within      30 days of termination of employment, (ii) reimbursement for any      applicable premiums Executive pays to continue coverage for Executive and      Executive’s eligible dependents under the Company’s health insurance plan      for twelve months after the date of termination, or, if earlier, until      Executive is eligible for similar benefits from another employer (provided      Executive validly elects to continue coverage under applicable law), (iii)      a post-termination exercise period for Executive’s stock options of twelve      (12) months (but in no event later than the expiration of the term of the      applicable stock option), and (iv) immediate vesting of all unvested      Compensatory Equity that would have vested had Executive otherwise      remained an employee for the 12-month period commencing on his termination      date.  In the event any accelerated vesting of restricted stock      units, performance shares or performance units occurs pursuant to clause      (iv) of the preceding sentence, the settlement of such awards and issuance      of the underlying shares will be subject to any required six (6) month      delay pursuant to Section 24.  Notwithstanding clause (iv)      of this Section 6(a) above, upon a Change of Control, (x) Executive      will receive immediate vesting with respect to 50% of all unvested      Compensatory Equity that are then held by Executive, and (y) if a      termination described in the first sentence of this Section 6(a) occurs      within 60 days before or 18 months following a Change of Control, then,      subject to Section 7, Executive will receive (A) a lump-sum payment equal      to Executive’s annual Base Salary plus 100% of the annual Target Bonus      amount for the year of termination, paid within thirty (30) days of      termination of employment, and (B) immediate vesting with respect to all      unvested Compensatory Equity that are then held by Executive. For purposes      of clause (x) in the preceding sentence, the vesting schedule for      Executive’s remaining unvested Compensatory Equity (determined after      giving effect to clause (x)) shall be automatically proportionately      adjusted on a grant by grant basis. Purely to illustrate the mechanics of      the preceding sentence, if immediately prior to a Change of Control there      were 150 unvested option shares outstanding which were vesting at a rate      of 8 shares each month, and after giving effect to the accelerated vesting      provisions of  clause (x) 75 of such option shares become vested      on an accelerated basis, then the 75 remaining unvested option shares      would thereafter vest at a rate of 4 shares per month. Executive’s vested      stock options will remain exercisable in accordance with the terms of the      1999 Stock Plan and the corresponding option agreements and thereafter      will expire to the extent notexercised.” |
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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 for 12 months following the date of termination and the Company      will instruct its officers and directors not to disparage the      Executive.  No severance pursuant to this Agreement will be paid      or provided until the Release becomes  effective.” |
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|   | (a) | Notwithstanding      anything to the contrary in this Agreement, no severance payments or      benefits or gross-up payments 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 (including but not      limited to issuance of shares under outstanding restricted stock units,      performance shares or performance units, the vesting of which is      accelerated pursuant to this Agreement, if any) 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 Treasury  Regulations. |
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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 isterminated. |
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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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| MICHAEL      P. GREGOIRE |   | TALEO      CORPORATION |   |
|--------------------------|--------|------------------------|--------|
|                     |   |                   |   |
|                     |   |                   |   |
| /s/ Michael P. Gregoire  |   | /s/ Josh Faddis        |   |
| Signature                |   | Signature              |   |
|                     |   |                   |   |
| Michael P. Gregoire      |   | Josh Faddis            |   |
| Print      Name          |   | Print      Name        |   |
|                     |   |                   |   |
|                     |   | VP, Legal              |   |
|                     |   | Print      Title       |   |

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