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                                                                   EXHIBIT 10.16

                                TALEO CORPORATION

                    MICHAEL P. GREGOIRE EMPLOYMENT AGREEMENT

      This Agreement is entered into as of March 14, 2005 (the "Effective Date")
by and between Taleo Corporation (the "Company") and Michael P. Gregoire
("Executive").

      1. Duties and Scope of Employment.

            (a) Positions and Duties. As of the Effective Date, Executive will
serve as the Company's President and Chief Executive Officer. Executive will
render such business and professional services in the performance of his duties,
consistent with Executive's position as the most senior executive officer within
the Company, as will reasonably be assigned to him by the Company's Board of
Directors (the "Board"). The period of Executive's employment under this
Agreement is referred to herein as the "Employment Term." The Executive's
services shall be performed at the Company's corporate headquarters in San
Francisco, California.

            (b) Board Membership. At the next Board meeting, Executive will be
appointed to serve as a director of the Company. If the Company's stock becomes
publicly traded, Executive's continued service as a member of the Board will be
subject to the Company's corporate governance policies for the nomination of
directors applicable to all directors and any required stockholder approval.

            (c) Obligations. During the Employment Term, Executive will devote
Executive's full business efforts and time to the Company but the Executive may
serve on up to two other boards of directors, subject to the Board's reasonable
determination that such service does not conflict with his obligations 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 without the prior approval of the Board;
provided, however, that Executive may, without the approval of the Board, 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 on his termination date of all accrued but
unpaid salary, vacation, any earned bonuses, expense reimbursements, and other
benefits due to Executive through his termination date under any
Company-provided or paid plans, policies, and arrangements. Executive agrees to
resign from all positions that he holds with the Company, including, without
limitation, his position as a member of the Board, immediately following the
termination of his employment if the Board so requests.

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      3. Compensation.

            (a) Base Salary. As of the Effective Date, the Company will pay
Executive an annual salary of $300,000 as compensation for his 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 Board.

            (b) Annual Bonus. Executive's annual target bonus will be 100% of
Base Salary ("Target Bonus"). Executive's annual bonus will be determined based
upon achievement of performance goals approved by the Board. Executive will have
the opportunity to discuss the nature of such performance goals with the Board
prior to such performance goals being approved by the Board. The Target Bonus
will have a linear payout schedule ranging from 75% to 125% of the Target Bonus
based upon achieving at least 75% of the Executive's performance goals, and
there may be no bonus paid if the threshold performance level is not achieved.
Bonuses, if any, will accrue and become payable in accordance with the
Committee's standard practices for paying executive incentive compensation;
provided, however, Executive's actual bonus earned for any fiscal year will be
paid within 45 days following the end of the Company's fiscal year.

            (c) Equity Compensation. Within fifteen (15) days of the Effective
Date, Executive will be granted the following option to purchase shares of
Company common stock:

                  (i) An option to purchase 3,571,526 shares (2.75% of Company's
currently outstanding capital stock including warrants and options granted or
reserved for issuance in the amount of 129,873,721) of Company Class A common
stock for a per-share exercise price equal to the fair market value of a share
of Company common stock on the date of grant (the "Stock Option"). The Stock
Option will vest over a 4-year period, with 25% of the shares vesting on the
first anniversary of the Effective Date, and 1/48th of the total shares vesting
monthly thereafter, so that all shares will be fully vested four years from the
Effective Date, subject to Executive continuing to remain a "Service Provider"
(as defined in the Company's 1999 Stock Plan, the "Plan") to the Company on each
vesting date;

                  (ii) The Stock Option shall have (x) a ten-year maximum term,
(y) a per common share exercise price of $2.25, and (z) otherwise have the same
terms and conditions as stock options held by other senior executives of the
Company, subject to Section 6. Executive shall be eligible for additional grants
of Company equity (the Stock Option and any other compensatory equity grants to
Executive shall be collectively referred to herein as "Compensatory Equity") as
may be determined by the Board of Directors in its discretion. The Stock Option
shall be issued in reliance upon Rule 701 under the Securities Act of 1933, as
amended. The Stock Option and any other Compensatory Equity granted to Executive
may be exercised (a) with cash, (b) with previously owned Company common shares
and/or (c) if the Company's stock is publicly traded and it is legally
permissible, via a "cashless exercise" program in which payment may be made all
or in part by delivery of an irrevocable direction to a securities broker to
sell common shares and to deliver all or part of the sale proceeds to the
Company in payment of the aggregate option exercise and any applicable tax
withholding obligations relating to the exercised option. Accelerated vesting of
Compensatory Equity may be credited: (x) pursuant to the terms of this Agreement
and in addition

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(y) pursuant to the terms of the Plan and any applicable Compensatory Equity
agreement. In the event of any conflict in the express terms between this
Agreement and the Plan and any Compensatory Equity agreement executed by and
between Executive and the Company, the express terms of this Agreement shall
prevail and govern. If the Company's stock becomes publicly traded, then
Executive may elect to establish a trading plan in accordance with Rule 10b5-1
of the Securities Exchange Act of 1934 provided that such trading plan shall be
subject to the reasonable approval of the Board of Directors consistent with
policies established by the Board applicable to all Section 16 officers. Subject
to the preceding provisions of this Section 3(c), the Stock Option will be
subject to the terms, definitions and provisions of the Plan and the stock
option agreements by and between the Executive and the Company (the "Option
Agreement"), all of which documents are incorporated herein by reference.

      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,
entertainment, 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. Severance.

            (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 of twelve (12) months, 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.
Notwithstanding clause (iv) of the preceding sentence, upon a Change of Control,
(x) Executive will receive immediate vesting with respect to 50% of all unvested
Stock Options that are then held by Executive, and (y) if a termination
described in the preceding sentence occurs within 60 days before or 18 months
following a Change of Control, 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 and (B) immediate vesting with respect to all
unvested Stock Options that are held by an Executive. For purposes of clause (x)
in the preceding sentence, the vesting schedule for Executive's remaining
unvested Stock Options (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

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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 not exercised.

            (b) Section 280G Gross-up. If any payment or benefit Executive would
receive from the Company and/or pursuant to this Agreement, but determined
without regard to any additional payment required under this Section 6(b),
(collectively, the "Payment") would (x) constitute a "parachute payment" within
the meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the "Code"), and (y) be subject to the excise tax imposed by Section 4999 of
the Code or any interest or penalties payable with respect to such excise tax
(such excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then Executive will be entitled
to receive from the Company an additional payment (the "Gross-Up Payment," and
any iterative payments pursuant to this paragraph also shall be "Gross-Up
Payments") in an amount that shall fund the payment by Executive of any Excise
Tax on the Payment, as well as all income and employment taxes on the Gross-Up
Payment, any Excise Tax imposed on the Gross-Up Payment and any interest or
penalties imposed with respect to income and employment taxes imposed on the
Gross-Up Payment. For this purpose, all income taxes will be assumed to apply to
Executive at the highest marginal rate. Notwithstanding the foregoing, the total
amount paid as Gross-Up Payments will not exceed $2,000,000. Any Gross-Up
Payment shall be paid to Executive, or for his benefit, within 15 days following
receipt by the Company of the report of the accounting firm described below (or
any determination by the Internal Revenue Service that Excise Taxes are owed, if
earlier).

      The accounting firm engaged by the Company for general audit purposes as
of the day prior to the effective date of the Change of Control shall perform
the foregoing calculations. If the accounting firm so engaged by the Company is
also serving as accountant or auditor for the individual, entity or group which
will control the Company upon the occurrence of a Change of Control, the Company
shall appoint a nationally recognized accounting firm other than the accounting
firm engaged by the Company for general audit purposes to make the
determinations required hereunder. The Company shall bear all expenses with
respect to the determinations by such accounting firm required to be made
hereunder.

      The accounting firm engaged to make the determinations hereunder shall
provide its calculations, together with detailed supporting documentation, to
the Company and Executive within thirty calendar days after the date on which
such accounting firm has been engaged to make such determinations or such other
time as requested by the Company or Executive. If the accounting firm determines
that no Excise Tax is payable with respect to a Payment, it shall furnish the
Company and Executive with an opinion reasonably acceptable to Executive that no
Excise Tax will be imposed with respect to such Payment. Any good faith
determinations of the accounting firm made hereunder shall be final, binding,
and conclusive upon the Company and Executive. Notwithstanding the foregoing, if
the Internal Revenue Service determines that Excise Taxes are owed, the Company
shall promptly pay the Gross-up Payment to Executive subject to the maximum set
forth in Section 6(b) above.

            (c) Voluntary Termination without Good Reason; Termination for
Cause. If Executive's employment with the Company terminates voluntarily by
Executive without Good

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Reason or is terminated for Cause by the Company, then (i) all further vesting
of Executive's outstanding Stock Options will terminate immediately, (ii) all
payments of compensation by the Company to Executive hereunder will terminate
immediately (except as to amounts already earned), (iii) Executive will be paid
all accrued but unpaid salary, vacation, any earned bonuses, expense
reimbursements and other benefits due to Executive through his termination date
under any Company-provided or paid plans, policies, and arrangements, and (iv)
Executive will be eligible for severance benefits only in accordance with the
Company's then established policies and practices.

            (d) 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) subject to Section 3(c),
Executive's outstanding Compensatory Equity awards will terminate in accordance
with the terms and conditions of the applicable award agreement(s).

            (e) 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 his 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; No Duty to Mitigate.

            (a) Separation Agreement and Release of Claims. The receipt of any
severance 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. Such agreement 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
will be paid or provided until the separation agreement and release agreement
becomes effective.

            (b) No Duty to Mitigate. Executive will not be required to mitigate
the amount of any payment contemplated by this Agreement, nor will any earnings
that Executive may receive from any other source reduce any such payment.

            (c) Nonsolicitation. 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, 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 solicit, induce, or influence any person to modify his or her
employment or consulting relationship with the Company except for any individual
whose employment with the Company has been terminated for a period of six months
or longer (the "No-Inducement"). If Executive breaches the No-Inducement, all
continuing payments and benefits to which Executive otherwise may be entitled
pursuant to Section 6 will cease immediately.

      8. Definitions.

            (a) Cause. For purposes of this Agreement, "Cause" means (i)
Executive's conviction of, or plea of nolo contendere to, a felony, (ii)
Executive's repeated failure to follow

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lawful, reasonable instructions of the Board, (iv) Executive's violation or
breach of any fiduciary or contractual duty to the Company which results in
material damage to the Company or its business; provided that if any of the
foregoing events is capable of being cured, the Company will provide written
notice to Executive describing the nature of such event and Executive will
thereafter have 30 days to cure such event (including the opportunity to present
his case to the full Board with the assistance of his own counsel). The
foregoing shall not be deemed an exclusive list of all acts or omissions that
the Company may consider as grounds for the termination of Executive's
employment, but it is an exclusive list of the acts or omissions that shall be
considered "Cause" for the termination of Executive's employment by the Company.
Executive shall continue to receive the compensation and benefits provided by
this Agreement during the 30 day period after he receives the written notice of
the Company's intention to terminate his employment for Cause.

            (b) Change of Control. For purposes of this Agreement, "Change of
Control" means (i) a sale of all or substantially all of the Company's assets,
(ii) any merger, consolidation, or other business combination transaction of the
Company with or into another corporation, entity, or person, other than a
transaction in which the holders of at least a majority of the shares of voting
capital stock of the Company outstanding immediately prior to such transaction
continue to hold (either by such shares remaining outstanding or by their being
converted into shares of voting capital stock of the surviving entity) a
majority of the total voting power represented by the shares of voting capital
stock of the Company (or the surviving entity) outstanding immediately after
such transaction, (iii) the direct or indirect acquisition (including by way of
a tender or exchange offer) by any person, or persons acting as a group, of
beneficial ownership or a right to acquire beneficial ownership of shares
representing a majority of the voting power of the then outstanding shares of
capital stock of the Company, (iv) a contested election of Directors, as a
result of which or in connection with which the persons who were Directors
before such election or their nominees cease to constitute a majority of the
Board, (v) a dissolution or liquidation of the Company or (vi) any definition
provided by the Plan.

            (c) Disability. For purposes of this Agreement, Disability shall
have the same defined meaning as in the Company's long-term disability plan.

            (d) Good Reason. For purposes of this Agreement, "Good Reason" means
the occurrence of any of the following without Executive's express written
consent: (i) a reduction in Executive's position or duties other than a
reduction in position or duties solely by virtue of the Company being acquired
and made part of a larger entity so long as Executive continues in his same role
on an adjusted basis serving as the highest ranking employee in a division or
subsidiary with no material reduction in the Executive's operational
responsibilities and duties in effect prior to the Change of Control, rather
than as CEO of the successor entity, (ii) a reduction in Executive's Base Salary
or Target Bonus other than a one-time reduction that in the aggregate does not
exceed 10% that also is applied to substantially all of the Company's other
senior executives, (iii) relocation of Executive's primary place of business for
the performance of his duties to the Company to a location that is more than 30
miles from its location as of the Effective Date, or (iv) any material breach or
material violation of a material provision of this Agreement by the Company (or
any successor to the Company).

      9.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

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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.

      10. Confidential Information. Executive agrees to execute the Company's
standard form of employee confidential information agreement (the "Confidential
Information Agreement") upon commencement of employment. During the Employment
Term, Executive further agrees to execute any updated versions of the
Confidential Information Agreement (any such updated version also referred to as
the "Confidential Information Agreement") as may be required of substantially
all of the Company's executive officers.

      11. 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.

      12. 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: Chairman of the Board of Directors
            Taleo Corporation
            575 Market Street
            San Francisco, CA 94105

            If to Executive:

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

      13. 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.

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      14. 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 San Francisco County, California 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

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Confidentiality Agreement or any other agreement regarding trade secrets,
confidential information, nonsolicitation or Labor Code Section 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.

      15. Legal and Tax Expenses. The Company will directly pay Executive's
counsel up to $10,000 for reasonable legal and tax advice expenses incurred in
connection with the negotiation and execution of this Agreement. Such payment
shall be made in full within 30 days after the Company's receipt of any
applicable invoices.

      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.

      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 Confidential Information Agreement, the Company's and
Executive's responsibilities under Sections 6, 7, 9, 12, 14 and 15 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 he has had the opportunity
to discuss this matter with and obtain advice from his 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.

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      23. Counterparts. This Agreement may be executed in counterparts, and 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.

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      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/Louis Tetu                               Date: March 8, 2005
   ---------------------------------

Title: Chairman of the Board

EXECUTIVE:

        /s/Michael P. Gregoire                    Date: March 8, 2005
------------------------------------
Michael P. Gregoire

          [SIGNATURE PAGE TO MICHAEL P. GREGOIRE EMPLOYMENT AGREEMENT]

                                                                              11<PAGE>
                                                                   Exhibit 10.17

                                  [TALEO LOGO]

                                Taleo Corporation
                          575 Market Street, 8th Floor
                         San Francisco, California 94105

San Francisco, December 16, 2004

MR. BRADFORD BENSON

RE: TERMS OF EMPLOYMENT

Dear Brad,

      This letter will confirm the terms of your offer of employment with Taleo
Corp., a Delaware corporation ("Taleo"). Such terms are as follows:

            1. Position and Responsibilities. You will serve in the position of
Executive Vice President of Research & Development and Chief Technology Officer
reporting directly to the Chief Executive Officer. You 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 your employment with
Taleo, you shall devote your full time, skill and attention to your duties and
responsibilities and shall perform faithfully, diligently and competently. In
addition, you shall comply with and be bound by the operating policies,
procedures and practices of Taleo in effect from time to time during your
employment.

            2. At-Will Employment. You acknowledge that your employment with
Taleo is for an unspecified duration and constitutes at-will employment and that
either you or Taleo can terminate this relationship at any time, with or without
Cause and with or without notice.

            3. Compensation.

                  (a) In consideration of your services, you will be paid a
salary of $16,667 US per month (annualized base salary of $200,000.00 US)
payable in two monthly payments in accordance with Taleo's standard payroll
practices ("Base Salary").

                  (b) Starting January 1st, 2005, in addition to your base
salary, you will be eligible for incentive bonuses for each fiscal quarter or
fiscal year of Taleo ("Incentive

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Mr. Bradford Benson
December 16, 2004
Page 2

Compensation"). The bonuses will be awarded based on criteria established by
Taleo's Chief Executive Officer and approved by Taleo's Board of Directors. The
aggregate amount of your target bonuses at 100% achievement of goal for a fiscal
year will be equal to one hundred and fifty thousand dollars ($150,000 US). The
bonus for a fiscal quarter or fiscal year will be paid in accordance with
Taleo's standard practices for payment of bonuses. For fiscal year 2005, you
will be eligible to participate in the Incentive Compensation Plan attached
hereto as Attachment A, which will be deemed to meet the requirements of this
Subsection (b) for 2005.

                  (c) If Taleo terminates your employment for any reason other
than Cause, then Taleo will continue to pay your Base Salary at the rate in
effect at the time of your resignation or termination of your employment for a
period of three (3) months from the date of your resignation or termination of
your employment and you shall continue to vest in stock options in accordance
with the schedule specified in Attachment C for a period of three (3) months
from the date of your resignation or termination of your employment ("Vesting
Period 1"). Such vested options shall expire ninety (90) days after the
expiration of Vesting Period 1.

                  (d) If, within one (1) year following a Change in Control (as
defined in Attachment C), Taleo or the successor corporation terminates your
employment for any reason other than Cause, then Taleo or the successor
corporation will continue to pay your Base Salary at the rate in effect at the
time of your resignation or termination of your employment for a period of six
(6) months from the date of your resignation or termination of your employment.
Your severance benefit will be paid in accordance with Taleo's standard payroll
procedures.

                  (e) If Taleo terminates your employment for any reason other
than Cause, and if you elect to continue your health insurance coverage under
the Consolidated Omnibus Budget Reconciliation Act ("COBRA") following the
termination of your employment, then Taleo will pay the same portion of your
monthly premium under COBRA as it pays for active employees until the earliest
of (i) the close of the 3-month period following the termination of your
employment, (ii) the expiration of your continuation coverage under COBRA or
(iii) the date when you become eligible for substantially equivalent health
insurance coverage in connection with new employment or self-employment.

                  (f) If your employment is terminated by Taleo with Cause, or
if you resign your employment voluntarily, no compensation or other payments
will be paid or provided to you that would have, or might have, become payable
to you in periods following the date when such a termination of employment is
effective. Any rights you may have under any Taleo plan regarding Benefits, as
defined below, shall be determined under the provisions of those plans. If your
employment terminates as a result of your death or disability, no compensation
or payments will be made to you other than those to which you may otherwise be
entitled under any Taleo plan regarding Benefits.

                  (g) For purposes of this Section 3, "Cause" means (i) any act
of personal dishonesty taken by you in connection with your responsibilities
under this agreement that is intended to result in your personal enrichment,
(ii) your conviction of a felony, (iii) any act by you that constitutes material
misconduct and is injurious to Taleo or (iv) substantial

<PAGE>
Mr. Bradford Benson
December 16, 2004
Page 3

violations of employment duties, responsibilities or obligations to Taleo that
are demonstrably willful and deliberate.

            4. Other Benefits. You will be eligible to receive the standard
employee benefits made available by Taleo to its employees from time to time
during the term of your employment to the extent of your eligibility therefore
("Benefits"). You shall earn paid vacation at the rate of four weeks per year of
employment (which shall be consistent with Taleo's vacation policy and which
shall not accrue in excess of that allowable under the policy). During your
employment, you shall be permitted, to the extent eligible, to participate in
any group medical, dental, life insurance and disability insurance plans, or
similar benefit plan of Taleo that is available to employees generally. You
should note that Taleo may modify salary and benefits from time to time as
deemed necessary. Base Salary and Incentive Compensation are not considered
Benefits as that term is used in this agreement.

      Taleo shall reimburse you for all reasonable business expenses actually
incurred or paid by you in the performance of your services on behalf of Taleo,
upon prior authorization and approval and upon submission of appropriate
documentation in accordance with Taleo's expense reimbursement policy.

            5. Conflicting Employment. During the term of your employment with
Taleo, you 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 your employment, nor will you
engage in any other activities that conflict with your obligations to Taleo.
This provision does not preclude you from serving on the boards of directors
and/or advisory boards of companies that are not competitors of Taleo.

            6. General Provisions.

                  (a) This offer letter will be governed by the internal
substantive laws, but not the choice of law rules, of the State of California.

                  (b) This offer letter along with the Exhibits A-D hereto and
the Incentive Compensation Plan attached as Attachment A, the Employment,
Confidential Information and Invention Assignment Agreement attached as
Attachment B, the Stock Option Recommendation attached as Attachment C, and the
Arbitration Agreement attached as Attachment D set forth the terms of your
employment with Taleo and supersedes any prior representations or agreements,
whether written or oral. Any modifications must be in writing and signed by an
officer of Taleo and by you. Any subsequent change or changes in your duties,
salary or other compensation will not affect the at-will nature of your
employment, the commitments you have agreed to or the enforceability, validity
or scope of this Agreement.

                  (c) This offer of employment is contingent upon background
verification and reference checks satisfactory to Taleo. I authorize Taleo
and/or a third party designated by Taleo, to conduct such investigations and
secure such information as is necessary to assess my background and employment
history.

<PAGE>
Mr. Bradford Benson
December 16, 2004
Page 4

                  (d) If you accept this offer of employment, you must provide
to Taleo documentary evidence of your identity and eligibility to work in the
United States. Such documentation must be provided to us within three (3)
business days of your date of hire, or our employment relationship with you may
be terminated.

                  (e) This agreement will be binding upon your heirs, executors,
administrators and other legal representatives and will be for the benefit of
Taleo, Taleo Holding and their respective successors and assigns.

            7. Contingencies. This offer is contingent upon our obtaining the
following:

                  (a) Return of the enclosed copy of this letter, signed by you
without modification, indicating your acceptance of this offer;

                  (b) Return of the enclosed Arbitration Agreement, signed by
you without modification;

                  (c) Return of the enclosed Employment, Confidential
Information and Invention Assignment Agreement (attached to this letter as
Attachment B), signed by you without modification;

                  (d) Satisfactory results of background and reference checks

                  (e) Documentation verifying your identity and legal authority
to work in the United States no later than 3 business days after the date you
commence work.

      To indicate your acceptance of this offer, please sign and date the
enclosed copy of this offer letter and the Confidentiality Agreement, and return
both to me as soon as possible. This offer shall be valid for three (3) working
days from the date of this letter. If you have any questions about this offer
letter, please call Louis Tetu, 418.524.5665 x1226.

<PAGE>
Mr. Bradford Benson
December 16, 2004
Page 5

      We look forward to working with you at Taleo.

                                       Sincerely,

                                       Taleo Corp.

                                       /s/ Louis Tetu
                                       -----------------------------------------
                                       Louis Tetu, Chief Executive Officer

ACCEPTANCE:

I accept the terms of my employment with Taleo Corp. as set forth above. I
understand that this offer letter does not constitute a contract of employment
for any specified period of time and that my employment relationship may be
terminated by Taleo or me at any time with or without notice and with or without
Cause.

Tuesday, December 21, 2004                    /s/ Brad Benson
----------------------------------            ----------------------------------
Start date Date                               Bradford Benson

<PAGE>

                                    EXHIBIT A

                                   TALEO CORP.

            LIST OF PRIOR INVENTIONS AND ORIGINAL WORKS OF AUTHORSHIP

Title             Date                   Identifying Number of Brief Description

____ No invention or improvements ____ Additional sheets attached

Signature of Employee: _________________________

Printed Name of Employee: ______________________ Date: ________________

<PAGE>

                                    EXHIBIT B

 CALIFORNIA LABOR CODE SECTION 2870 EMPLOYMENT AGREEMENTS; ASSIGNMENT OF RIGHTS

      (a) Any provision in an employment agreement which provides that an
employee shall assign, of offer to assign, any of his or her rights in an
invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer's
equipment, supplies, facilities or trade secret information except for those
inventions that either:

            (1) Relate at the time of conception or reduction to practice of the
invention to the employer's business, or actual or demonstrably anticipated
research or development of the employer.

            (2) Result from any work performed by the employee for the employer.

      (b) To the extent a provision in an employment agreement purports to
require an employee to assign an invention otherwise excluded from being
required to be assigned under subdivision (a), the provision is against the
public policy of this state and is unenforceable."

<PAGE>

                                    EXHIBIT C

                                   TALEO CORP.
                           TERMINATION CERTIFICATION

      This is to certify that I do not have in my possession, nor have I failed
to return, any devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, blueprints, sketches, materials,
equipment, other documents or property, or reproductions of any aforementioned
items belonging to Taleo, its subsidiaries, affiliates, successors or assigns
(together, the "Company").

      I further certify that I have complied with all the terms of the Company's
Employment Confidential Information and Invention Assignment Agreement signed by
me, including the reporting of any inventions and original works of authorship
(as defined therein), conceived or made by me (solely or jointly with others)
covered by that agreement.

      I further agree that, in compliance with the Employment, Confidential
Information and Invention Assignment Agreement; I will preserve as confidential
all trade secrets, confidential knowledge, data or other proprietary information
relating to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, data bases, other original works of
authorship, customer lists, business plans, financial information or other
subject matter pertaining to any business of the Company or any of its
employees, clients, consultants or licensees.

      I further agree that for twelve (12) months from this date, I will not
solicit, induce, recruit or encourage any of the Company's employees to leave
their employment.

*
------------------------------------------
Employee                                                      Date

* TO BE SIGNED ABOVE ONLY UPON TERMINATION

Exhibit C read and understood by:

------------------------------------------
        Bradford Benson                                       Date

<PAGE>

                                    EXHIBIT D

                                   TALEO CORP.
                         CONFLICT OF INTEREST GUIDELINES

      It is the policy of Taleo Corp. to conduct its affairs in strict
compliance with the letter and spirit of the law and to adhere to the highest
principles of business ethics. Accordingly, all officers, employees and
independent contractors must avoid activities, which are in conflict, or give
the appearance of being in conflict, with these principles and with the
interests of the Company. The following are potentially compromising situations,
which must be avoided. Any exceptions must be reported to the CEO and written
approval for continuation must be obtained.

      1. Revealing confidential information to outsiders or misusing
confidential information. Unauthorized divulging of information is a violation
of this policy whether or not for personal gain and whether or not harm to the
Company is intended. (The Employment, Confidential Information and Invention
Assignment Agreement elaborate on this principle and is a binding agreement).

      2. Accepting or offering substantial gifts, excessive entertainment,
favors or payments which may be deemed to constitute undue influence or
otherwise be improper or embarrassing to the Company.

      3. Participation in civic or professional organizations that might involve
divulging confidential information of the Company.

      4. Initiating or approving personnel actions affecting reward or
punishment of employees or applicants where there is a family relationship or is
or appears to be a personal or social involvement.

      5. Initiating or approving any form of personal or social harassment of
employees.

      6. Investing or holding outside directorship in suppliers, customers or
competing companies, including financial speculations, where such investment or
directorship might influence in any manner a decision or course of action of the
Company.

      7. Borrowing from or lending to employees, customers or suppliers.

      8. Acquiring real estate of interest to the Company.

      9. Improperly using or disclosing to the Company any proprietary
information or trade secrets of any former or concurrent employer or other
person or entity with whom obligations of confidentiality exist.

      10. Unlawfully discussing prices, costs, customers, sales, or markets with
competing companies or their employees.

      11. Making any unlawful agreement with distributors with respect to
prices.

<PAGE>

      12. Improperly using or authorizing the use of any inventions, which are
the subject of patent claims of any other person or entity.

      13. Engaging in any conduct, which is not in the best interest of the
Company.

      Each officer, employee and independent contractor must take every
necessary action to ensure compliance with these guidelines and to bring problem
areas to the attention of higher management for review. Violations of this
conflict of interest policy may result in discharge without warning.

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