Document:

exv10w10

 

Exhibit 10.10

TALEO CORPORATION

JEFFREY CARR EMPLOYMENT AGREEMENT

     This Agreement is entered into as of March 8, 2006 (the “Effective Date”) by and between Taleo
Corporation, a Delaware corporation, (the “Company”) and Jeffrey Carr (“Executive”).

     1. Duties and Scope of Employment.

          (a) Positions and Duties. As of the Effective Date, Executive will serve as Executive
Vice President, Global Marketing and Americas Sales. Executive will assume and discharge such
responsibilities as are commensurate with such position and as the Chief Executive Officer may
direct from time to time. During Executive’s employment with Company, Executive shall devote
Executive’s full time, skill and attention to Executive’s duties and responsibilities and shall
perform faithfully, diligently and competently. In addition, Executive shall comply with and be
bound by the operating policies, procedures and practices of Company in effect from time to time
during Executive’s employment. The period of Executive’s employment under this Agreement is
referred to herein as the “Employment Term.”

          (b) Obligations. During the Employment Term, Executive will devote Executive’s full
business efforts and time to the Company. For the duration of the Employment Term, Executive
agrees not to actively engage in any other employment, occupation, or consulting activity for any
direct or indirect remuneration (including membership on a board of directors) without the prior
approval of the Chief Executive Officer ; provided, however, that Executive may, without the
approval of the Chief Executive Officer, serve in any capacity with any civic, educational, or
charitable organization, provided such services do not interfere with Executive’s obligations to
Company.

     2. At-Will Employment. Executive and the Company agree that Executive’s employment
with the Company constitutes “at-will” employment. Executive and the Company acknowledge that this
employment relationship may be terminated at any time, upon written notice to the other party, with
or without good cause or for any or no cause, at the option either of the Company or Executive.
However, as described in this Agreement, Executive may be entitled to severance benefits depending
upon the circumstances of Executive’s termination of employment. Upon the termination of
Executive’s employment with the Company for any reason, Executive will be entitled to payment of
all accrued but unpaid vacation, expense reimbursements, and other benefits due to Executive
through Executive’s termination date under any Company-provided or paid plans, policies, and
arrangements. Executive agrees to resign from all positions that Executive holds with the Company
immediately following the termination of Executive’s employment if Company so requests.

     3. Compensation.

          (a) Base Salary. As of the Effective Date, the Company will pay Executive an annual
salary of $225,000.00 USD as compensation for Executive’s services (the “Base Salary”). The Base
Salary will be paid periodically in accordance with the Company’s normal payroll practices (but no
less frequently than once per month) and be subject to the usual, required withholding.
Executive’s salary
will be subject to annual review, and adjustments will be made based upon the Company’s
standard practices or the discretion of the Company’s Board of Directors.

 

 

          (b) Bonus. Executive’s annual target for the aggregate amount of annual and quarterly
bonuses will be $250,000.00 USD (“Target Bonus”). Allocation, eligibility and payment of Target
Bonus will be based upon achievement of quarterly and yearly performance goals approved by the
Chief Executive Officer and set forth in an annually and/or quarterly revised Target Bonus
Schedule, the first of which is attached hereto as Schedule A. Executive will have the opportunity
to discuss the nature of such performance goals with the Chief Executive Officer prior to such
performance goals being approved by the Chief Executive Officer and such performance goals shall be
reasonable in light of overall Company goals.

     4. Employee Benefits. During the Employment Term, Executive will be eligible to
participate in accordance with the terms of all Company employee benefit plans, policies, and
arrangements that are applicable to other senior executives of the Company, as such plans,
policies, and arrangements may exist from time to time. Executive will be entitled to 4 weeks of
paid annual vacation.

     5. Expenses. The Company will reimburse Executive for reasonable travel and other
expenses incurred by Executive in the furtherance of the performance of Executive’s duties
hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to
time.

     6. Termination and Severance.

          (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 Executives 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) continue to pay Executive’s Base Salary at the rate in effect at the time of
Executive’s resignation or termination of employment for a period of 6 months 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 (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 resignation or 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.

          (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 Executives 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) continue to pay Executive’s Base Salary 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, 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 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 resignation or 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.

          (c) All benefits set forth in Sections 6(a) and 6(b) are collectively referred to as
“Severance.” Severance payments shall be made by Company on the date such payments would have been
made had Executive’s employment relationship with Company continued (e.g., Severance based on Base
Salary shall be paid twice per month and Severance based on Target Bonuses shall be paid quarterly
or annually as appropriate).

          (d) In addition to Severance, in the event that 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 did not take place within one year
following a Change in Control (as defined below), then Executive will receive immediate vesting
with respect to the number of options that would have vested in accordance with Executive’s
then-current stock option grants had Executive remained employed for an additional 6 months and, if
applicable, the Company’s right of repurchase shall continue to lapse in accordance with
Executive’s then-current restricted stock grants for a period of 6 months from the date of such
termination or resignation of employment. In the event of Executive’s termination of employment as
described in this subsection (d), the Executive’s then vested stock options shall be exercisable
for 6 months after Executive’s date of termination. Notwithstanding the foregoing, in no case
shall any option be exercisable after the expiration of its term.

          (e) In addition to Severance, in the event that 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), Executive will receive immediate vesting with respect to all
unvested stock options that are held by Executive and the Company’s right of repurchase shall lapse
entirely with respect to restricted stock grants from the Company to Executive. In the event of
Executive’s termination of employment as described in this subsection (e), the Executive’s then
outstanding stock options shall be exercisable until the earlier of (1) the expiration of 6 months
from Executive’s date of termination, or (2) the later of (i) December 31st of the
calendar year in which such option would have expired pursuant to its original terms, or (ii) the
fifteenth (15th) day of the third month following the date which such option would have
expired pursuant to its original terms. Notwithstanding the foregoing, in no case shall any option
be exercisable after the expiration of its term.

          (f) For purposes of this Section 6, “Cause” means (i) any act of personal dishonesty taken by
Executive in connection with Executive’s responsibilities under this Agreement that is intended to
result in Executive’s personal enrichment, (ii) Executive’s conviction of a felony, (iii) any act
by Executive that constitutes material misconduct and is injurious to the Company, or (iv)
substantial violations of employment duties, responsibilities or obligations to Company that are
demonstrably willful and deliberate.

 

 

          (g) For purposes of this Section 6, “Good Reason” means (i) without Executive’s consent, a
significant reduction of Executive’s duties, position or responsibilities relative to Executive’s
duties, position or responsibilities in effect immediately prior to such reduction, other than a
reduction where Executive (1) is asked to assume substantially similar duties and responsibilities
within division of a larger entity after a Change in Control and Executive continues to report to
the Chief Executive Officer of the parent company of which Company becomes a part or (2) remains a
Section 16 officer of the parent company of which Company becomes a part; (ii) without Executive’s
consent, a reduction of Executive’s Base Salary or Target Bonus other than a one-time reduction
that does not exceed twenty percent (20%) and that is also applied to substantially all of
Company’s senior executives; (iii) substantial reduction of the facilities and perquisites
(including office space) available to Executive immediately prior to such reduction; (iv) without
Executive’s consent, a material reduction by Company in the kind or level of employee benefits to
which Executive is entitled immediately prior to such reduction, with the result that Executive’s
overall benefits package is significantly reduced, (v) without Executive’s consent, Executive’s
relocation to a facility or a location outside the San Francisco Bay Area or Dublin/Pleasanton
area, and (vi) any purported termination of Executive other than for Cause, as defined below. If
Executive does not notify Company in writing that Executive believes a significant reduction of
Executive’s duties, position or responsibilities has occurred pursuant to this Section 6 within 180
days after receiving written notice of the event or occurrence that Executive believes to have
resulted in such a significant reduction, then such reduction shall be deemed for purposes of this
Agreement as not constituting Good Reason, as that term is used in this Section 6. Disagreement as
to the allocation, eligibility and payment of Target Bonus to be set forth in a Target Bonus
Schedule shall not be a basis for Good Reason resignation so long as such target bonus is created
in accordance with Section 3(b) above. Prior to a Change in Control, reasonable changes in
organizational structure, including the shifting or reassignment of divisional, geographic or team
responsibilities among members of the executive team, shall not constitute Good Reason, as that
term is used in this Section 6, provided that such changes do not decrease Executive’s essential
North American distribution responsibilities, including but not limited to direct sales, solution
consulting, alliance partners and field marketing and provided that Executive continues to report
directly to the Company’s Chief Executive Officer.

          (h) For purposes of this Section 6, “Change in Control” means the occurrence of any of the
following events: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule
13d-3 of such Exchange Act), directly or indirectly, of securities of the Company representing
fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding
voting securities; or (ii) the consummation of the sale or disposition by Company of all or
substantially all of Company’s assets; or (iii) the consummation of a merger or consolidation of
Company with any other corporation, other than a merger or consolidation which would result in the
voting securities of Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or
its parent) more than fifty percent (50%) of the total voting power represented by the voting
securities of Company or such surviving entity or its parent outstanding immediately after such
merger or consolidation.

          (i) Termination due to Death or Disability. If Executive’s employment terminates by
reason of death or Disability, then (i) Executive will be entitled to receive benefits only in
accordance with the Company’s then applicable plans, policies, and arrangements, and (ii)
Executive’s outstanding equity awards will terminate in accordance with the terms and conditions of
the applicable award agreement(s).

          (j) Sole Right to Severance. This Agreement is intended to represent Executive’s sole
entitlement to severance payments and benefits in connection with the termination of Executive’s
employment. To the extent Executive receives severance or similar payments and/or benefits under
any
other Company plan, program, agreement, policy, practice, or the like, severance payments and
benefits due to Executive under this Agreement will be correspondingly reduced (and vice-versa).

 

 

     7. Conditions to Receipt of Severance.

          (a) Separation Agreement and Release of Claims. The receipt of any Severance or other
benefit pursuant to Section 6 will be subject to Executive signing and not revoking a separation
agreement and release of claims in a form reasonably acceptable to the Company and Executive. Such
agreement will provide (among other things) that Executive will not disparage the Company, its
directors, or its executive officers, and will contain No-Solicitation terms consistent with this
Agreement. No Severance will be paid or provided until the separation agreement and release
agreement becomes effective.

          (b) Non-solicitation. In the event of a termination of Executive’s employment that
otherwise would entitle Executive to the receipt of Severance pursuant to Section 6, Executive
agrees that as a condition to receipt of Severance, during the 12-month period following
termination of employment, Executive, directly or indirectly, whether as employee, owner, sole
proprietor, partner, director, founder or otherwise, will not hire, solicit, induce, or influence
any person to modify such person’s employment or consulting relationship with the Company (the
“Non-solicitation”).

     8. Indemnification and Insurance. Executive will be covered under the Company’s
insurance policies and, subject to applicable law, will be provided indemnification to the maximum
extent permitted by the Company’s bylaws, Certificate of Incorporation, and standard form of
Indemnification Agreement, with such insurance coverage and indemnification to be in accordance
with the Company’s standard practices for senior executive officers but on terms no less favorable
than provided to any other Company senior executive officer or director. This Section 8 shall
survive the termination of Executive’s employment, the termination of this Agreement and the
execution of the separation agreement and release of claims described in Section 7.

     9. Confidential Information.

          (a) Company Information. The Executive will not, at any time, whether during or subsequent to
Executive’s employment hereunder, directly or indirectly, disclose or furnish to any other person,
firm or corporation, or use on behalf of himself/herself or any other person, firm or corporation,
any confidential or proprietary information acquired by the Executive in the course of Executive’s
employment with Company, including, without limiting the generality of the foregoing, product
design, product roadmaps, future product plans, contractual details relating to current Company
clients, buying habits of present and prospective clients of Company, pricing and sales policy,
techniques and concepts, the names of customers or prospective customers of Company or of any
person, firm or corporation who or which have or shall have treated or dealt with Company or any of
its subsidiaries or affiliated companies, any other information acquired by the Executive regarding
the methods of conducting the business of Company and any of its subsidiaries and/or affiliates,
any information regarding the company’s methods of research and development, of obtaining business,
of manufacturing, of providing or advertising products or services, or of obtaining customers,
trade secrets and other confidential information concerning the business operations of Company or
any company and/or entity affiliated with Company, except to the extent that such information is
already generally known in the public domain.

          (b) Former Employer Information. Executive agrees, during employment with Company,
not to improperly use or disclose any proprietary information or trade secrets of any former or
concurrent employer or other person or entity and that Executive will not bring onto the premises
of
Company any unpublished document or proprietary information belonging to any such employer,
person or entity unless consented to in writing by such employer, person or entity.

 

 

          (c) Third Party Information. Executive recognizes that Company has received and in
the future will receive from third parties their confidential or proprietary information subject to
a duty on Company’s part to maintain the confidentiality of such information and to use it only for
certain limited purposes. Executive agrees to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person, firm or corporation
or to use it except as necessary in carrying out work for the Company consistent with Company’s
agreement with such third party.

          (d) Assignment of Inventions. Executive agrees to promptly make full written
disclosure to Company, will hold in trust for the sole right and benefit of the Company and hereby
assigns to the Company, or its designee, all right, title and interest in and to any and all
inventions, original works of authorship, developments, concepts, improvements, or trade secrets,
whether or not patentable or registrable under copyright or similar laws, which Executive may
solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed
or reduced to practice, during the period of time Executive is in the employ of Company
(collectively referred to as “Inventions”). Executive further acknowledges that all original works
of authorship which are made by Executive (solely or jointly with others) within the scope of and
during the period of Executive’s employment with Company and which are protectible by copyright are
“works made for hire” as that term is defined in the relevant copyright act.

          (e) Inventions Retained and Licensed. Executive has attached hereto, as Schedule B,
a list of all inventions, original works of authorship, developments, improvements, and trade
secrets which were made by me prior to my employment with Company (collectively referred to as
“Prior Inventions”), which belong to Executive, which relate to Company’s proposed business,
products or research and development, and which are not assigned to Company hereunder; or, if no
such list is attached, Executive represents that there are no such Prior Inventions. If in the
course of Executive’s employment with Company, Executive incorporates into a Company product,
process or machine a Prior Invention owned by Emoloyee or in which Executive has an interest,
Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual,
worldwide license to make, have made, modify, use, and sell such Prior Invention as part of or in
connection with such product, process or machine.

          (f) Maintenance of Records. Executive agrees to keep and maintain adequate and
current written records of all Inventions made by Executive (solely or jointly with others) during
the term of my employment with Company. The records will be in the form of notes, sketches,
drawings, and any other format that may be specified by Company. The records will be available to
and remain the sole property of Company at all times.

          (g) Patent and Copyright Registrations. Executive agrees to assist Company, or its
designee, at Company’s expense, in every proper way to secure Company’s rights in the Inventions
and any copyrights, patents, mask work rights or other intellectual property rights relating
thereto in any and all countries, including the disclosure to Company of all pertinent information
and data with respect thereto, the execution of all applications, specifications, oaths,
assignments and all other instruments which Company shall deem necessary in order to apply for and
obtain such rights and in order to assign and convey to Company, its successors, assigns, and
nominees the sole and exclusive rights, title and interest in and to such Inventions, and any
copyrights, patents, mask work rights or other intellectual property rights relating thereto.
Executive further agrees that Executive’s obligation to execute or cause to be executed, when it is
in Executive’s power to do so, any such instrument or papers shall continue after the termination
of this Agreement. If Company is unable because of Executive’s mental or physical

 

 

incapacity or for any other reason to secure Executive’s signature to apply for or to pursue
any application for any Canadian or foreign patents or copyright registrations covering Inventions
or original works of authorship assigned to Company as above, then Executive hereby irrevocably
designate and appoint Company and its duly authorized officers and agents as Executive’s agent and
attorney in fact, to act for and in Executive’s behalf and stead to execute and file any such
applications and to do all other lawfully permitted acts to further the prosecution and issuance of
letters patent or copyright registrations thereon with the same legal force and effect as if
executed by Executive.

          (h) Return of Company Documents. Executive agrees that, at the time of leaving the
employ of Company, Executive will deliver to Company (and will not keep in my possession, recreate
or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings blueprints, sketches, materials, equipment, other
documents or property, or reproductions of any aforementioned items developed by me pursuant to
Executive’s employment with Company or otherwise belonging to Company, its successors or assigns.

     10. Assignment. This Agreement will be binding upon and inure to the benefit of (a)
the heirs, executors, and legal representatives of Executive upon Executive’s death and (b) any
successor of the Company. Any such successor of the Company will be deemed substituted for the
Company under the terms of this Agreement for all purposes. For this purpose, “successor” means
any person, firm, corporation, or other business entity which at any time, whether by purchase,
merger, or otherwise, directly or indirectly acquires all or substantially all of the assets or
business of the Company. None of the rights of Executive to receive any form of compensation
payable pursuant to this Agreement may be assigned or transferred except by will or the laws of
descent and distribution. Any other attempted assignment, transfer, conveyance, or other
disposition of Executive’s right to compensation or other benefits will be null and void.

     11. Notices. All notices, requests, demands, and other communications called for
hereunder will be in writing and will be deemed given (a) on the date of delivery if delivered
personally, (b) one day after being sent by a well established commercial overnight service, or (c)
four days after being mailed by registered or certified mail, return receipt requested, prepaid and
addressed to the parties or their successors at the following addresses, or at such other addresses
as the parties may later designate in writing:

If to the Company:

Attn: Chief Executive Officer

Taleo Corporation

575 Market Street, 8th Floor

San Francisco, CA 94105

If to Executive:

at
the last residential address known by the Company as provided by Executive in writing.

     12. Severability. If any provision hereof becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable, or void, this Agreement will continue in full
force and effect without said provision.

 

 

     13. Arbitration.

          (a) General. In consideration of Executive’s service to the Company, its promise to
arbitrate all employment related disputes, and Executive’s receipt of the compensation, pay raises,
and other benefits paid to Executive by the Company, at present and in the future, Executive agrees
that any and all controversies, claims, or disputes with anyone (including the Company and any
employee, officer, director, shareholder, or benefit plan of the Company in their capacity as such
or otherwise) arising out of, relating to, or resulting from Executive’s service to the Company
under this Agreement or otherwise or the termination of Executive’s service with the Company,
including any breach of this Agreement, will be subject to binding arbitration under the
Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through 1294.2,
including Section 1283.05 (the “Rules”) and pursuant to California law. Disputes which Executive
agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any
statutory claims under state or federal law, including, but not limited to, claims under Title VII
of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age
Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the California
Fair Employment and Housing Act, the California Labor Code, claims of harassment, discrimination,
or wrongful termination, and any statutory claims. Executive further understands that this
Agreement to arbitrate also applies to any disputes that the Company may have with Executive.

          (b) Procedure. Executive agrees that any arbitration will be administered by the
American Arbitration Association (“AAA”) and that a neutral arbitrator will be selected in a manner
consistent with its National Rules for the Resolution of Employment Disputes. The arbitration
proceedings will be held in the county of Taleo US headquarters and will allow for discovery
according to the rules set forth in the National Rules for the Resolution of Employment Disputes or
California Code of Civil Procedure. Executive agrees that the arbitrator will have the power to
decide any motions brought by any party to the arbitration, including motions for summary judgment
and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing.
Executive agrees that the arbitrator will issue a written decision on the merits. Executive
understands the Company will pay for any administrative or hearing fees charged by the arbitrator
or AAA except that Executive will pay the first $200.00 of any filing fees associated with any
arbitration Executive initiates. Executive agrees that the arbitrator will administer and conduct
any arbitration in a manner consistent with the Rules and that to the extent that the AAA’s
National Rules for the Resolution of Employment Disputes conflict with the Rules, the Rules will
take precedence.

          (c) Remedy. Except as provided by the Rules, arbitration will be the sole, exclusive,
and final remedy for any dispute between Executive and the Company. Accordingly, except as
provided for by the Rules, neither Executive nor the Company will be permitted to pursue court
action regarding claims that are subject to arbitration. Notwithstanding, the arbitrator will not
have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator
will not order or require the Company to adopt a policy not otherwise required by law which the
Company has not adopted.

          (d) Availability of Injunctive Relief. In addition to the right under the Rules
to petition the court for provisional relief, Executive agrees that any party also may petition the
court for injunctive relief where either party alleges or claims a violation of this Agreement or
the Confidentiality Agreement or any other agreement regarding trade secrets, confidential
information, nonsolicitation, noninducement or Labor Code §2870.

          (e) Administrative Relief. Executive understands that this Agreement does not
prohibit Executive from pursuing an administrative claim with a local, state, or federal
administrative body such as the Department of Fair Employment and Housing, the Equal Employment
Opportunity
Commission, or the workers’ compensation board. This Agreement does, however, preclude
Executive from pursuing court action regarding any such claim.

 

 

          (f) Voluntary Nature of Agreement. Executive acknowledges and agrees that Executive
is executing this Agreement voluntarily and without any duress or undue influence by the Company or
anyone else. Executive further acknowledges and agrees that Executive has carefully read this
Agreement and that Executive has asked any questions needed for Executive to understand the terms,
consequences, and binding effect of this Agreement, including that Executive is waiving Executive’s
right to a jury trial. Finally, Executive agrees that Executive has been provided an opportunity
to seek the advice of an attorney of Executive’s choice before signing this Agreement.

     14. Parachute Excise Tax Gross-Up.

          (a) Gross-Up Payment. If it is determined that any payment or distribution of any
type to Executive or for Executive’s benefit by Company, any of its affiliates, any person who
acquires ownership or effective control of Company or ownership of a substantial portion of
Company’s assets (within the meaning of section 280G of Code, and the regulations thereunder) or
any affiliate of such person, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise (the “Total Payments”), would be subject to the excise tax
imposed by section 4999 of the Code or any interest or penalties with respect to such excise tax
(such excise tax and any such interest or penalties are collectively referred to as the “Excise
Tax”), then Executive will be entitled to receive an additional payment (a “Gross-Up Payment”) in
an amount calculated to ensure that after Executive pays all taxes (and any interest or penalties
imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment,
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Total
Payments, subject to Section 14(e) below.

          (b) Determination by Accountant. All determinations and calculations required to be
made under this Section 14 will be made by an independent accounting firm selected by Executive
from among the largest four accounting firms in the United States (the “Accounting Firm”). The
Accounting Firm will provide its determination (the “Determination”), together with detailed
supporting calculations regarding the amount of any Gross-Up Payment and any other relevant matter,
to Executive and Company not less than forty-five (45) days before the date any such Excise Tax is
due (if Executive reasonably believes that any of the Total Payments may be subject to the Excise
Tax). If the Accounting Firm determines that no Excise Tax is payable by Executive, it will
furnish Executive with a written statement that it has concluded that no Excise Tax is payable
(including the reasons therefor) and that Executive have substantial authority not to report any
Excise Tax on Executive’s federal income tax return. If a Gross-Up Payment is determined to be
payable, it will be paid to Executive not less than thirty (30) days before any such Excise Tax is
due. Any determination by the Accounting Firm will be binding upon Company and Executive, absent
manifest error.

          (c) Over- and Underpayments. As a result of uncertainty in the application of section
4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments not made by Company should have been made (“Underpayment”) or that
Gross-Up Payments will have been made by Company that should not have been made (“Overpayment”).
In either event, the Accounting Firm will determine the amount of the Underpayment or Overpayment
that has occurred. In the case of an Underpayment, the amount of such Underpayment will promptly
be paid by Company to Executive or for Executive’s benefit. In the case of an Overpayment,
Executive will, at the direction and expense of Company, take such steps as are reasonably
necessary (including the filing of returns and claims for refund), follow reasonable instructions
from, and procedures established by, Company, and otherwise reasonably cooperate with Company to
correct such Overpayment, provided, however, that (i) Executive will in no event be obligated to
return to Company
an amount greater than the net after-tax portion of the Overpayment that Executive have
retained or have recovered as a refund from the applicable taxing authorities and (ii) this
provision will be interpreted in a manner consistent with the intent of Section 14(a) above, which
is to make Executive whole, on an after-tax basis, from the application of the Excise Tax, subject
to Section 14(e) below, it being understood that the correction of an Overpayment may result in
Executive’s repaying to Company an amount that is less than the Overpayment.

 

 

          (d) Stockholder Approval. If no stock of Company is readily tradable and the
stockholder approval exemption described in section 280G(b)(5)(A)(ii) of the Code may be available
for one or more payments or distributions to Executive or for Executive’s benefit, then Executive
and Company will use their best efforts to seek such approval in accordance with the regulations
under section 280G of the Code and to cause such exemption to apply.

          (e) Gross-Up Payment Cap. Notwithstanding the foregoing or anything in this Section
14, the total amount paid to Executive by Company as Gross-Up Payments will not exceed $200,000.

     15. Section 409A. Notwithstanding anything to the contrary in this Agreement, any
cash severance payments due to Executive pursuant to this Agreement or otherwise will not be paid
during the six-month period following Executive’s termination of employment unless the Company
determines, in its good faith judgment, that paying such amounts at the time or times indicated
above would not cause Executive to incur an additional tax under Section 409A of the Code and any
temporary or final Treasury Regulations and Internal Revenue Service guidance thereunder (“Section
409A”). If the payment of any amounts are delayed as a result of the previous sentence, any cash
severance payments due to Executive pursuant to this Agreement or otherwise during the first six
(6) months after Executive’s termination will accrue during such six-month period and will become
payable in a lump sum payment on the date six (6) months and one (1) day following the date of the
Executive’s termination. Thereafter, payments will resume in accordance with the applicable
schedule set forth in this Agreement.

     16. Integration. This Agreement represents the entire agreement and understanding
between the parties as to the subject matter herein and supersedes all prior or contemporaneous
agreements whether written or oral. No waiver, alteration, or modification of any of the
provisions of this Agreement will be binding unless in a writing that specifically references this
Section and is signed by duly authorized representatives of the parties hereto. Executive agrees
to work in good faith with the Company to consider amendments to this Agreement which are necessary
or appropriate to avoid imposition of any additional tax or income recognition under Section 409A
prior to the actual payment to Executive of payments or benefits under this Agreement.

     17. Waiver of Breach. The waiver of a breach of any term or provision of this
Agreement, which must be in writing, will not operate as or be construed to be a waiver of any
other previous or subsequent breach of this Agreement.

     18. Survival. The Company’s and Executive’s responsibilities under Sections 8, 9, 13
and 14 and all other provisions intended by their terms to survive the termination of this
Agreement will survive the termination of this Agreement.

     19. Headings. All captions and section headings used in this Agreement are for
convenient reference only and do not form a part of this Agreement.

     20. Tax Withholding. All payments made pursuant to this Agreement will be subject to
withholding of applicable taxes.

     21. Governing Law. This Agreement will be governed by the laws of the State of
California (with the exception of its conflict of laws provisions).

     22. Acknowledgment. Executive acknowledges that Executive has had the opportunity to
discuss this matter with and obtain advice from Executive’s private attorney, has had sufficient
time to, and has carefully read and fully understands all the provisions of this Agreement, and is
knowingly and voluntarily entering into this Agreement.

     23. Counterparts. This Agreement may be executed in counterparts, and may be
exchanged by fax or electronically scanned and emailed copies. Each counterpart will have the same
force and effect as an original and will constitute an effective, binding agreement on the part of
each of the undersigned.

 

 

     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by a duly authorized officer, as of the day and year written below.

COMPANY:

TALEO CORPORATION

	 	 	 	 	 	 	 
	By:

	 	     /s/ Michael Gregoire
 

	 	 	 	Date: 3/8/2006 
	 
	 	 	 	 	 	 
	Name: Michael Gregoire	 	 
	 
	 	 	 	 	 	 
	Title: President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	          /s/ Jeffrey Carr	 	Date: 3/8/2006
	 	 	 	 	 
	Jeffrey Carr	 	 

[SIGNATURE PAGE TO JEFFREY CARR EMPLOYMENT AGREEMENT]exv10w11

 

Exhibit 10.11

CONTRACT OF EMPLOYMENT EFFECTIVE AS OF THE 8th DAY OF March, 2006.

BETWEEN:      TALEO (CANADA) INC., having a place of business at 330
St-Vallier St. East, Suite 400, in the City and District of
Quebec, Province of Quebec, G1K 9C5,

(hereinafter referred to as “Taleo”)

AND:                Guy Gauvin

                    (hereinafter referred to as the “Executive”)

PRÉAMBULE

     WHEREAS Taleo is actively involved in the area of the development of software;

     WHEREAS the detailed research of Taleo regarding the resolution of management problems
involving recruitment has resulted in the creation and development of a certain software;

     WHEREAS the certain software of Taleo expresses itself through the data programs and technical
documentation regarding the system;

     WHEREAS Taleo possesses a certain technical expertise which is unique and innovative to Taleo
and as such is confidential in nature;

     WHEREAS it is of paramount importance to Taleo that the Executive holds in the strictest of
confidence any and/or all confidential information which he may acquire during his employment with
Taleo;

     WHEREAS Taleo wishes to employ the Executive;

     WHEREAS the Executive wishes to be employed by Taleo.

 

 

WHEREFORE THE PARTIES COVENANT AND AGREE AS FOLLOWS:

SECTION 1 — INTERPRETATION

	1.1	 	The division of this Contract of employment into articles and sections, and the use of
section titles is for convenience of reference only and shall not affect the interpretation or
construction of this agreement.

SECTION 2 — TERMS OF EMPLOYMENT

	2.1	 	Subject to the terms and conditions of this Contract of Employment, Taleo agrees to employ
the Executive in the position of Executive Vice President, Global Services. The Executive
will report to Taleo’s Chief Executive Offer. Executive will assume and discharge such
responsibilities as are commensurate with such position and as the CEO may direct from time to
time.
	 
	2.2	 	In addition, the Executive shall provide such reasonable services as may, from time to time,
be determined by his/her manager or such other person as Taleo may designate, and shall
provide updates on his/her activities on a regular and timely basis or as requested.
	 
	2.3	 	During the term of employment, the Executive will devote his/her full time, skill and
attention to his/her duties and responsibilities and shall perform faithfully and diligently.
	 
	2.4	 	During the term of employment with Taleo, the Executive will not engage in any other
employment, occupation, consulting, or other business activity directly related to the
business in which Taleo is now involved or becomes involved during the term of employment nor
will the Executive engage in any other activities that conflict with his/her obligations to
Taleo.
	 
	2.5	 	The term of employment between Taleo and the Executive in the position of Executive Vice
President, Global Services shall be for an indeterminate period of time beginning January 1,
2005.
	 
	2.6	 	The Executive may be required to engage in such travel (within Canada and/or abroad) as may
be necessary to adequately perform his/her duties outlined herein.

SECTION 3 — COMPENSATION AND OTHER BENEFITS

	3.1	 	Base Salary. As of the Effective Date, the Taleo will pay Executive an annual salary of
$180,000.00 CAD as compensation for Executive’s services (the “Base Salary”). The Base Salary
will be paid periodically in accordance with the Taleo’s normal payroll practices (but no less
frequently than once per month) and be subject to the usual, required withholding.
Executive’s salary will be subject to annual review, and adjustments will be made based upon
the Taleo’s standard practices or the discretion of the Company’s Board of Directors.
	 
	3.2	 	Bonus. Executive’s annual target for the aggregate amount of annual and quarterly bonuses
will be $140,000.00 CAD (“Target Bonus”). Allocation, eligibility and payment of Target Bonus
will be based upon achievement of quarterly and yearly performance goals approved by the Chief
Executive Officer and set forth in an annually and/or quarterly revised Target Bonus Schedule,
the first of which is attached hereto as Schedule A. Executive will have the opportunity to
discuss the nature of such performance goals with the Chief Executive Officer prior to such
performance goals being approved by the Chief Executive Officer.
	 
	3.3	 	Taleo shall be responsible for directly making all payroll deductions as source which may be
due to the appropriate government authorities as well as those deductions related to internal
benefits programs.
	 
	3.4	 	The Executive agrees and authorizes Taleo to make the necessary deductions from his
compensation or any other amount which may be owing in the case of an over payment made to the
Executive.

2

 

	3.5	 	Upon hiring the Executive will be eligible to receive medical and fringe benefits including:
life insurance, disability insurance (short term and long term), healthcare coverage, dental
coverage, home internet access (cable modem or high speed access) in line with Taleo programs
that may be changed from time to time. Complete details of Taleo benefit plans will be
reviewed with the Executive upon commencement of employment. Taleo reserves the right to
change its benefits programs at any time.
	 
	3.6	 	Upon presentation of appropriate receipts and manager approval, Taleo shall reimburse the
Executive for all ordinary and necessary business expenses as have been reasonably and
necessarily incurred, according to the Taleo’s expense reimbursement policy.

SECTION 4 — VACATION

	4.1	 	The Executive shall be entitled to vacation in accordance with Taleo’s Canadian Annual
Vacation Policy but not in any event less than four (4) weeks of paid annual vacation.
	 
	4.2	 	It is understood and agreed that the Executive must receive prior approval from Taleo with
respect to the scheduling of vacation according to the Annual Vacation Policy.
	 
	4.3	 	The Executive will be entitled to paid days off for the statutory holidays established by
provincial legislation in accordance with provincial law.

 SECTION 5 — ABSENCES & HOURS OF WORK

	5.1	 	The minimum work expectation is 40 hours per week.
	 
	5.2	 	It is understood and agreed upon between Taleo and the Executive that the Executive shall not
be entitled to receive any remuneration whatsoever for hours worked in excess 40 hours and
that such work may be expected and obligatory.

3

 

SECTION 6 — TERMINATION OF EMPLOYMENT 

	6.1	 	If Taleo 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
Taleo or the successor corporation will (1) pay prorated bonuses for any partially completed
bonus periods through Executives termination date (at an assumed 100% on-target achievement of
goal), less any applicable provincial and federal required withholding amounts and other
lawful deductions, (2) continue to pay Executive’s Base Salary 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, less any applicable
provincial and federal required withholding amounts and other lawful deductions, and (3) Taleo
will reimburse Executive for any applicable premiums Executive pays for coverage for Executive
and Executive’s eligible dependents for substantially the same health insurance coverage as
provided by the Taleo plan for a period of 12 months following the termination of Executive’s
employment, or the date when Executive becomes eligible for substantially equivalent health
insurance coverage in connection with new employment or self-employment.
	 
	6.2	 	If Taleo 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 Taleo or the successor corporation will (1) pay prorated bonuses for any
partially completed bonus periods through Executives termination date (at an assumed 100%
on-target achievement of goal), less any applicable provincial and federal required
withholding amounts and other lawful deductions, (2) continue to pay Executive’s Base Salary
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,
less any applicable provincial 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 provincial and
federal required withholding amounts and other lawful deductions, and (4) Taleo will reimburse
Executive for any applicable premiums Executive pays for coverage for Executive and
Executive’s eligible dependents for substantially the same health insurance coverage as
provided by the Taleo plan for a period of 12 months following the termination of Executive’s
employment, or the date when Executive becomes eligible for substantially equivalent health
insurance coverage in connection with new employment or self-employment.
	 
	6.3	 	All benefits set forth in Sections 6.1 and 6.2 are collectively referred to as “Severance.”
Severance payments shall be made by Taleo on the date such payments would have been made had
Executive’s employment relationship with Taleo continued (e.g., Severance based on Base Salary
shall be paid twice per month and Severance based on Target Bonuses shall be paid quarterly or
annually as appropriate).
	 
	6.4	 	In addition to Severance, in the event that 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 did not take place within one
year following a Change in Control (as defined below), then Executive will receive immediate
vesting with respect to the number of options that would have vested in accordance with
Executive’s then-current stock option grants had Executive remained employed for an additional
6 months and, if applicable, the Company’s right of repurchase shall continue to lapse in
accordance with Executive’s then-current restricted stock grants for a period of 6 months from
the date of such termination or resignation of employment. In the event of Executive’s
termination of employment as described in this Section 6.4, the Executive’s then vested stock
options shall be exercisable for 3 months after Executive’s date of termination.
Notwithstanding the foregoing, in no case shall any option be exercisable after the expiration
of its term.

4

 

	6.5	 	In addition to Severance, in the event that 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), Executive will receive immediate vesting
with respect to all unvested stock options that are held by Executive and the Company’s right
of repurchase shall lapse entirely with respect to restricted stock grants from the Company to
Executive. In the event of Executive’s termination of employment as described in this Section
6.5, the Executive’s then outstanding stock options shall be exercisable for 3 months after
Executive’s date of termination. Notwithstanding the foregoing, in no case shall any option
be exercisable after the expiration of its term.
	 
	6.6	 	To the extent the terms of Executive’s option agreement provide for terms more favorable than
the ones set forth in this Agreement, the terms of the option agreement shall prevail.
	 
	6.7	 	For purposes of this Section 6, “Cause” means (i) any act of personal dishonesty taken by
Executive in connection with Executive’s employment responsibilities, (ii) Executive’s
conviction of a felony, (iii) any act by Executive that constitutes material misconduct, (iv)
repeated failures to follow the lawful, reasonable instructions of the Chief Executive
Officer, or (v) substantial violations of employment or fiduciary duties, responsibilities or
obligations to Taleo.
	 
	6.8	 	For purposes of this Section 6, “Good Reason” means (i) without Executive’s consent, a
significant reduction of Executive’s duties, position or responsibilities relative to
Executive’s duties, position or responsibilities in effect immediately prior to such
reduction, other than a reduction where Executive are asked to assume substantially similar
duties and responsibilities in a division of a larger entity after a Change in Control; (ii)
without Executive’s consent, a reduction of Executive’s Base Salary or Target Bonus other than
a one-time reduction that does not exceed twenty percent (20%) and that is also applied to
substantially all of Taleo’s senior executives; or (iii) without Executive’s consent,
Executive’s relocation to a facility or a location greater than 75 miles from Quebec, QC. If
Executive does not notify Taleo in writing that Executive believes a significant reduction of
Executive’s duties, position or responsibilities has occurred pursuant to this Section 6
within thirty days of the event or occurrence that Executive believes to have resulted in such
a significant reduction, then such reduction shall be deemed for purposes of this Agreement as
not constituting Good Reason, as that terms is used in this Section 6. Disagreement as to the
allocation, eligibility and payment of Target Bonus to be set forth in a Target Bonus Schedule
shall not be a basis for Good Reason resignation.
	 
	6.9	 	For purposes of this Section 6, “Change in Control” means the occurrence of any of the
following events: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act),
directly or indirectly, of securities of the Taleo representing fifty percent (50%) or more of
the total voting power represented by the Taleo’s then outstanding voting securities and such
change in ownership results in a broad management changes at Taleo; or (ii) the consummation
of the sale or disposition by Taleo of all or substantially all of Taleo’s assets; or (iii)
the consummation of a merger or consolidation of Taleo with any other corporation, other than
a merger or consolidation which would result in the voting securities of Taleo outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or its parent) more than fifty
percent (50%) of the total voting power represented by the voting securities of Taleo or such
surviving entity or its parent outstanding immediately after such merger or consolidation.
	 
	6.10	 	Notwithstanding the above, Taleo’s Chief Executive Officer reserves the right to make
reasonable organizational structure changes reasonably commensurate with the position of Chief
Executive Officer. Such changes may include the shifting or reassignment of divisional,
geographic or team responsibilities among members of the executive team. Such changes are
within the reasonable discretion of the Chief Executive Officer and shall not constitute Good
Reason, as that term is used in this Section 6.

5

 

	6.11	 	Termination due to Death or Disability. If Executive’s employment terminates by reason of
death or Disability, then (i) Executive will be entitled to receive benefits only in
accordance with the Taleo’s then applicable plans, policies, and arrangements, and (ii)
Executive’s outstanding equity awards will terminate in accordance with the terms and
conditions of the applicable award agreement(s).
	 
	6.12	 	Sole Right to Severance. This Agreement is intended to represent Executive’s sole
entitlement to severance payments and benefits in connection with the termination of
Executive’s employment. To the extent Executive receives severance or similar payments and/or
benefits under any other Taleo plan, program, agreement, policy, practice, or the like,
severance payments and benefits due to Executive under this Agreement will be correspondingly
reduced (and vice-versa).
	 
	6.13	 	Separation Agreement and Release of Claims. The receipt of any Severance or other benefit
pursuant to Section 6 will be subject to Executive signing and not revoking a separation
agreement and release of claims in a form reasonably acceptable to the Taleo. Such agreement
will provide (among other things) that Executive will not disparage the Taleo, its directors,
or its executive officers, and will contain No-Inducement, No-Solicit and Non-Compete terms
consistent with Section 6.12 below. No Severance will be paid or provided until the
separation agreement and release agreement becomes effective.
	 
	6.14	 	Non-solicitation and other terms in separation agreement. In the event of a termination of
Executive’s employment that otherwise would entitle Executive to the receipt of Severance
pursuant to Section 6, Executive agrees that as a condition to receipt of Severance, during
the 12-month period following termination of employment, Executive, directly or indirectly,
whether as employee, owner, sole proprietor, partner, director, founder or otherwise, will (i)
not hire, solicit, induce, or influence any person to modify Executive’s employment or
consulting relationship with the Taleo (the “No-Inducement”), (ii) not solicit, divert or
take away or attempt to solicit, divert or take away the business of any customer or
prospective customer of the Taleo (the “No-Solicit”), and (iii) not engage in work in the
geographical area, as defined below, for the benefit of any business, in competition with the
Taleo’s business (“Non-Compete”). If Executive breaches the No-Inducement, No-Solicit or
Non-Compete, all continuing payments and benefits to which Executive otherwise may be entitled
pursuant to Section 6 will cease immediately and shall be repaid to Taleo. Executive
acknowledges that the time, geographic and scope limitations of
Executive’s obligations under
this section that are to be reflected in a separation agreement are reasonable, especially in
light of the Taleo’s desire to protect its Confidential Information and the Severance and
other benefits set forth herein, and that Executive will not be precluded from gainful
employment if Executive is obligated not to compete with the Taleo during the period and
within the geographical area. In the event the provisions of this section are deemed to
exceed the time, geographic or scope limitations permitted by applicable law, then such
provisions shall be reformed to the maximum time, geographic or scope limitations, as the case
may be, then permitted by such law. The covenants contained in this section shall be
construed as a series of separate covenants, one for each city, town, suburb and state within
the geographical area. For purposes of this Section 6.12, “geographical area” shall mean (i)
all cities, towns and suburbs in Executive’s state or province or territory of residence, (ii)
all other states/provinces of the United States and Canada, and (iii) all other countries of
the world; provided that, the Taleo currently markets its products via direct sales within
each such country prior to the date of the termination of Executive’s relationship with the
Taleo.

6

 

SECTION 7 — NONDISCLOSURE, NON-USE & IP ASSIGNMENT

	7.1	 	Confidentiality. The Executive will not, at any time, whether during or subsequent to his/her
employment hereunder, directly or indirectly, disclose or furnish to any other person, firm or
corporation, or use on behalf of himself/herself or any other person, firm or corporation, any
confidential or proprietary information acquired by the Executive in the course of his/her
employment with Taleo, including, without limiting the generality of the foregoing, product
design, product roadmaps, future product plans, contractual details relating to current Taleo
clients, buying habits of present and prospective clients of Taleo, pricing and sales policy,
techniques and concepts, the names of customers or prospective customers of Taleo or of any
person, firm or corporation who or which have or shall have treated or dealt with Taleo or any
of its subsidiaries or affiliated companies, any other information acquired by the Executive
regarding the methods of conducting the business of Taleo and any of its subsidiaries and/or
affiliates, any information regarding the company’s methods of research and development, of
obtaining business, of manufacturing, of providing or advertising products or services, or of
obtaining customers, trade secrets and other confidential information concerning the business
operations of Taleo or any company and/or entity affiliated with Taleo, except to the extent
that such information is already generally known in the public domain.
	 
	7.2	 	Former Employer Information. Executive agrees, during employment with Taleo, not to
improperly use or disclose any proprietary information or trade secrets of any former or
concurrent employer or other person or entity and that Executive will not bring onto the
premises of Taleo any unpublished document or proprietary information belonging to any such
employer, person or entity unless consented to in writing by such employer, person or entity.
	 
	7.3	 	Third Party Information. Executive recognizes that Taleo has received and in the future will
receive from third parties their confidential or proprietary information subject to a duty on
Taleo’s part to maintain the confidentiality of such information and to use it only for
certain limited purposes. Executive agrees to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person, firm or
corporation or to use it except as necessary in carrying out work for the Taleo consistent
with Taleo’s agreement with such third party.
	 
	7.4	 	Assignment of Inventions. Executive agrees to promptly make full written disclosure to
Taleo, will hold in trust for the sole right and benefit of the Taleo and hereby assigns to
the Taleo, or its designee, all right, title and interest in and to any and all inventions,
original works of authorship, developments, concepts, improvements, or trade secrets, whether
or not patentable or registrable under copyright or similar laws, which Executive may solely
or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or
reduced to practice, during the period of time Executive is in the employ of Taleo
(collectively referred to as “Inventions”). Executive further acknowledges that all original
works of authorship which are made by Executive (solely or jointly with others) within the
scope of and during the period of Executive’s employment with Taleo and which are protectible
by copyright are “works made for hire” as that term is defined in the relevant copyright act.
	 
	7.5	 	Inventions Retained and Licensed. Executive has attached hereto, as Schedule B, a list of
all inventions, original works of authorship, developments, improvements, and trade secrets
which were made by me prior to my employment with Taleo (collectively referred to as “Prior
Inventions”), which belong to Executive, which relate to Taleo’s proposed business, products
or research and development, and which are not assigned to Taleo hereunder; or, if no such
list is attached, Executive represents that there are no such Prior Inventions. If in the
course of Executive’s employment with Taleo, Executive incorporates into a Taleo product,
process or machine a Prior Invention owned by Emoloyee or in which Executive has an interest,
Taleo is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual,
worldwide license to make, have made, modify, use, and sell such Prior Invention as part of or
in connection with such product, process or machine.
	 
	7.6	 	Maintenance of Records. Executive agrees to keep and maintain adequate and current written
records of all Inventions made by Executive (solely or jointly with others) during the term of
my employment with Taleo. The records will be in the form of notes, sketches, drawings, and
any other format that may be specified by Taleo. The records will be available to and remain
the sole property of Taleo at all times.

7

 

	7.7	 	Patent and Copyright Registrations. Executive agrees to assist Taleo, or its designee, at
Taleo’s expense, in every proper way to secure Taleo’s rights in the Inventions and any
copyrights, patents, mask work rights or other intellectual property rights relating thereto
in any and all countries, including the disclosure to Taleo of all pertinent information and
data with respect thereto, the execution of all applications, specifications, oaths,
assignments and all other instruments which Taleo shall deem necessary in order to apply for
and obtain such rights and in order to assign and convey to Taleo, its successors, assigns,
and nominees the sole and exclusive rights, title and interest in and to such Inventions, and
any copyrights, patents, mask work rights or other intellectual property rights relating
thereto. Executive further agrees that Executive’s obligation to execute or cause to be
executed, when it is in Executive’s power to do so, any such instrument or papers shall
continue after the termination of this Agreement. If Taleo is unable because of Executive’s
mental or physical incapacity or for any other reason to secure Executive’s signature to apply
for or to pursue any application for any Canadian or foreign patents or copyright
registrations covering Inventions or original works of authorship assigned to Taleo as above,
then Executive hereby irrevocably designate and appoint Taleo and its duly authorized officers
and agents as Executive’s agent and attorney in fact, to act for and in Executive’s behalf and
stead to execute and file any such applications and to do all other lawfully permitted acts to
further the prosecution and issuance of letters patent or copyright registrations thereon with
the same legal force and effect as if executed by Executive.
	 
	7.8	 	Return of Taleo Documents. Executive agrees that, at the time of leaving the employ of
Taleo, Executive will deliver to Taleo (and will not keep in my possession, recreate or
deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings blueprints, sketches, materials, equipment, other
documents or property, or reproductions of any aforementioned items developed by me pursuant
to Executive’s employment with Taleo or otherwise belonging to Taleo, its successors or
assigns.

SECTION 8 — GENERAL PROVISIONS

	8.1	 	The Executive authorizes Taleo to deduct from any payment due to the Executive at any time,
including a termination payment, any amounts owed to Taleo by reason of purchases, advances,
loans or in recompense for damage to or loss of Taleo’s property or in recompense for damage
to Taleo as a result of the Executive’s breach of any term of the present Contract of
Employment, save only that this provision shall be applied so as not to conflict with any
applicable legislation.
	 
	8.2	 	The provisions of this Contract of Employment shall be governed and interpreted in accordance
with the laws of the Province of Quebec.
	 
	8.3	 	The waiver by Taleo of any breach of any provision of this Contract of Employment by the
Executive shall not operate or be construed as a waiver of any subsequent breach by the
Executive.
	 
	8.4	 	This Contract of Employment constitutes the entire agreement between the parties with respect
to the employment of the Executive and any and/or all previous agreements, written or oral,
express or implied between the parties or on their behalf relating to the employment of the
Executive by Taleo are terminated and cancelled and each of the parties releases and forever
discharges the other of and from all manner of actions, causes of action, claims and demands
whatsoever under or in respect of any such agreement.
	 
	8.5	 	Any modification to this Contract of Employment must be in writing and signed by the parties,
or it shall have no effect and shall be void.
	 
	8.6	 	In the event that any provision in this Contract of Employment shall be deemed void or
invalid by a Court of competent jurisdiction, the remaining provisions shall be and remain in
full force and effect.
	 
	8.7	 	The rights which accrue to Taleo under this Contract of Employment shall pass to its
successors or assigns. The rights of the Executive under this Contract of Employment are not
assignable or transferable in any manner.

8

 

	8.8	 	Indemnification and Insurance. Executive will be covered under the Taleo’s insurance
policies and, subject to applicable law, will be provided indemnification to the maximum
extent permitted by the Taleo’s bylaws, Certificate of Incorporation, and standard form of
Indemnification Agreement, with such insurance coverage and indemnification to be in
accordance with the Taleo’s standard practices for senior executive officers but on terms no
less favorable than provided to any other Taleo senior executive officer or director.
	 
	8.9	 	Section 409A. To the extent section 409A is applicable to Executive and notwithstanding
anything to the contrary in this Agreement, any cash severance payments due to Executive
pursuant to this Agreement or otherwise will not be paid during the six-month period following
Executive’s termination of employment unless the Company determines, in its good faith
judgment, that paying such amounts at the time or times indicated above would not cause
Executive to incur an additional tax under Section 409A of the Code and any temporary or final
Treasury Regulations and Internal Revenue Service guidance thereunder (“Section 409A”). If
the payment of any amounts are delayed as a result of the previous sentence, any cash
severance payments due to Executive pursuant to this Agreement or otherwise during the first
six (6) months after Executive’s termination will accrue during such six-month period and will
become payable in a lump sum payment on the date six (6) months and one (1) day following the
date of the Executive’s termination. Thereafter, payments will resume in accordance with the
applicable schedule set forth in this Agreement.
	 
	8.10	 	To the extent section 409A is applicable to Executive, Executive agrees to work in good faith
with the Company to consider amendments to this Agreement which are necessary or appropriate
to avoid imposition of any additional tax or income recognition under Section 409A prior to
the actual payment to Executive of payments or benefits under this Agreement. Notwithstanding
the foregoing, this Agreement will be deemed amended, without any consent required from
Executive, to the extent necessary to avoid imposition of any additional tax or income
recognition pursuant to Section 409A prior to actual payments under this Agreement to
Executive. The parties agree to cooperate with each other and to take reasonably necessary
steps in this regard.
	 
	8.11	 	The Executive acknowledges that he has read and understands this Contract of Employment, and
further acknowledges that he has had the opportunity to obtain independent legal advice with
respect to it.
	 
	8.12	 	This Agreement may be executed in counterparts and may be exchanged by facsimile or
electronically scanned and emailed copy. Each such counterpart shall be deemed to be an
original and all such counterparts together shall constitute one and the same Agreement.
	 
	8.13	 	The parties hereto have requested that this Contract of Employment be drafted in the English
language. Les parties aux présentes ont demandé à ce que le présent Contrat
d’Emploi soit rédigé en anglais.

9

 

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE SIGNED THIS AGREEMENT THIS 8th DAY OF MARCH 2006.

	 	 	 
	     /s/ Michael Gregoire

	 	     /s/ Guy Gauvin
	 

	 	 
	Taleo (CANADA) INC.

	 	Guy Gauvin
	(Signature of Authorized Representative)
	 	 

[SIGNATURE PAGE TO GUY GAUVIN EMPLOYMENT AGREEMENT]

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