Document:

Unassociated Document

    
      

    

    EXHIBIT
10.18

     

     

    PROMISSORY
NOTE

     

     

    
      
        	
                Dublin,
      California

              	
                $166,444.00

              

      

    

     

    Effective
Date:  December29, 2008

     

     

    FOR VALUE
RECEIVED, the undersigned Jeffrey Carr, (“BORROWER”) hereby promises to pay to
the order of Taleo Corporation, a Delaware corporation (“LENDER” also known as
“Taleo”) at 4140 Dublin Boulevard, Suite 400, Dublin, CA 94568 (or at such other
address as the holder of this NOTE may designate by notice to BORROWER), in
lawful money of the United States of America, the principal sum of one hundred
and sixty-six thousand, four hundred and forty-four dollars ($166,444.00), as
set forth below.

     

    
      	
               
      

            	
              1.

            	
              Purpose.  The
      parties are entering into this loan in order to provide BORROWER with
      funds to repay Taleo the gross severance amount previously paid to
      BORROWER by Taleo pursuant to BORROWER’S employment agreement, dated May
      8, 2006.  BORROWER shall use the funds solely for the purpose of
      repaying Taleo pursuant to the terms of Internal Revenue Service (“IRS”)
      Notice 2008-113 so that the original payment of severance will not be
      potentially subject to the negative tax implications of Section 409A of
      the Internal Revenue Code of 1986, as amended and the final regulations
      and any guidance promulgated thereunder (“Section 409A”).  By
      entering into this LOAN, LENDER neither takes the position nor represents
      that (i) the severance as originally paid was subject to any negative tax
      implications under Section 409A or (ii) the provision of the loan
      satisfies the requirements of IRS Notice
      2008-113.  Notwithstanding the forgoing, the BORROWER and the
      LENDER acknowledge that the repayment to LENDER as set forth above shall
      be a good faith effort to comply with the requirements of IRS Notice
      2008-113 and LENDER agrees not to take a contrary tax reporting
      position.

            

    

     

    
      	
               
      

            	
              2.

            	
              Definitions.

            

    

     

    
      	
               
      

            	
              a.

            	
              “CODE”
      will mean the Internal Revenue Code of 1986, as
  amended.

            

    

     

    
      	
               
      

            	
              b.

            	
              “DUE
      DATE” will mean the date that is six (6) months and one (1) day following
      the LOAN DATE.

            

    

     

    
      	
               
      

            	
              c.

            	
              “INTEREST
      RATE” will accrue at rate of five percent (5%) per
  annum.

            

    

     

    
      	
               
      

            	
              d.

            	
              “LOAN
      DATE” will mean the date the LENDER provides the funds to BORROWER after
      execution of this promissory
note.

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              3.

            	
              Payments.

            

    

     

    
      	
               
      

            	
              a.

            	
              On
      each monthly anniversary of the LOAN DATE, BORROWER shall pay accrued
      interest on the NOTE equal to six hundred and ninety-three dollars and
      fifty-two cents ($693.52) based on the INTEREST
  RATE.

            

    

     

    
      	
               
      

            	
              b.

            	
              BORROWER
      shall pay the principal amount of one hundred and sixty-six thousand, four
      hundred and forty-four dollars ($166,444.00) in a lump-sum on the DUE
      DATE.

            

    

     

    
      	
               
      

            	
              4.

            	
              Prepayment.

            

    

     

    BORROWER
may prepay all or any portion of this NOTE and the accrued interest without
penalty or acceleration at any time before the DUE DATE.

     

    
      	
               
      

            	
              5.

            	
              Acceleration of DUE
      DATE.

            

    

     

    The
entire unpaid principal of this NOTE and accrued interest thereon will at the
election of the LENDER, become immediately due and payable upon the occurrence
of any of the following, irrespective of the DUE DATE as otherwise defined in
this NOTE:

     

    
      	
               
      

            	
              a.

            	
              BORROWER
      fails to make any payment when the same is due;
  or

            

    

     

    
      	
               
      

            	
              b.

            	
              A
      bankruptcy or insolvency proceeding is instituted by or against BORROWER,
      or if a receiver is appointed for the property of
  BORROWER.

            

    

     

    
      	
               
      

            	
              6.

            	
              Collection Costs Borne
      by BORROWER.

            

    

     

    In the
event of any failure on the part of BORROWER to make any payment when the same
is due, LENDER will be entitled to recover from BORROWER all costs of effecting
collection of the same, including reasonable attorneys’ fees.  Unpaid
principal and interest subject to collection will bear interest at the maximum
rate allowed under California law for nonexempt lenders.

     

    
      	
               
      

            	
              7.

            	
              Full
      Recourse.

            

    

     

    The
holder of this NOTE will have full recourse against the BORROWER.  The
parties agree and acknowledge that should the LENDER be deemed insolvent, the
creditors of the LENDER shall have full rights to enforce the repayment terms
under this NOTE in their favor.

     

    
      	
               
      

            	
              8.

            	
              Governing
      Law.

            

    

     

    This NOTE
will be governed by and construed in accordance with the internal laws of the
State of California (without reference to its conflicts of law
provisions).

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              9.

            	
              Successors.

            

    

     

    This NOTE
will be binding upon and will inure to the benefit of the parties hereto and
their respective representatives, designees, successors, assigns, heirs,
executors and administrators. The term “LENDER” and the term “BORROWER” as used
herein will be deemed to include, for all purposes, the respective
representatives, designees, successors, assigns, heirs, executors and
administrators.

     

    [Signature
Page to Follow]

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    Effective
as of the date set forth above.

    

    

    BORROWER:

    

    
      
        
          
            	
                    Signature:

                  	
                    /s/ Jeffrey Carr

                  	 
      
	
                    Name:

                  	
                    Jeffrey
      Carr

                  	 
      

          

        

      

    

    

    

    ACCEPTED
AND ACKNOWLEDGED:

    

    

    LENDER:

    

    TALEO
CORPORATION, a Delaware corporation

    

    

    
      
        
          	
                  By:

                	
                  /s/ Josh Faddis

                	 
      

        

      

    

    

     

    4Unassociated Document

    
      

    

    Exhibit 10.31

      

    
      
        
          TALEO
CORPORATION

          

          AMENDMENT
TO EMPLOYMENT AGREEMENT

          

          

          This
Amendment to the Employment Agreement (the “Amendment”) is made as of December
26, 2008, by and between Taleo Corporation (the “Company”), and Michael P.
Gregoire (“Executive”).

          

          RECITALS

          

          WHEREAS, the
Company and Executive are parties to a Michael P. Gregoire Employment Agreement
dated March 14, 2005 (the “Agreement”); and

          

          WHEREAS, the
Company and Executive desire to amend certain provisions of the Agreement in
order to come into compliance with Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), and any final regulations and official
guidance promulgated thereunder (together, “Section 409A”), as set forth
below.

          

          NOW, THEREFORE, BE IT
RESOLVED, the Company and Executive agree that in consideration of the
foregoing and the promises and covenants contained herein, the parties agree as
follows:

          

          AGREEMENT

          

          1.   
         Severance.  Section
6(a) of the Agreement entitled “Termination Without Cause or Resignation for
Good Reason” shall be amended and restated in its entirety to provide as
follows:

          

          
            	
                     
      

                  	
                    “(a)

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

                  

          

          
            
               

            

            
              
              

              
                

              

            

            
               

            

          

          2.  
          Section 280G
Gross-up.  The last sentence of the first paragraph under
Section 6(b), beginning with the words “Any Gross-Up Payment,” shall be amended
and restated to provide as follows:

          

          “Subject
to any six (6) month delay required pursuant to Section 24, any Gross-Up Payment
will 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).  Notwithstanding the foregoing, in no event will any
gross-up payment under this paragraph be paid later than the end of the calendar
year immediately following the calendar year in which Executive remits the
related taxes.”

          

          3.   
         Release of
Claims.  Section 7(a) of the Agreement entitled “Separation
Agreement and Release of Claims” shall be amended and restated in its entirety
to provide as follows:

          

          
            	
                     
      

                  	
                    “(a)

                  	
                    Separation Agreement
      and Release of Claims.  The receipt of any severance
      pursuant to this Agreement will be subject to Executive signing and not
      revoking a separation agreement and release of claims (the “Release”) in a
      form reasonably acceptable to the Company which becomes effective within
      sixty (60) days following Executive’s employment termination date or such
      earlier date as required by the Release (such deadline, the “Release
      Deadline”).  The Release will provide (among other things) that
      Executive will not disparage the Company, its directors, or its executive
      officers for 12 months following the date of termination and the Company
      will instruct its officers and directors not to disparage the
      Executive.  No severance pursuant to this Agreement will be paid
      or provided until the Release becomes
  effective.”

                  

          

          
            
               

            

            
              -2-

              
                

              

            

            
               

            

          

          4.  
          Legal and Tax
Expenses.  Section 15 of the Agreement entitled “Legal and Tax
Expenses” shall be deleted in its entirety and no longer shall be in
effect.

          

          5. 
           Integration.  The
following sentence shall be added to Section 16 of the Agreement entitled
“Integration,” immediately following the last sentence of Section
16:

          

          “With
respect to equity awards granted on or after the date hereof, the acceleration
of vesting provisions provided herein will apply to such awards except to the
extent otherwise explicitly provided in the applicable equity award
agreement.”

          

          6. 
           Section
409A.  The following paragraphs shall be added as a new Section
24 to the Agreement.

          

          
            “24. 
   Section
409A.

          

          

          
            	
                     
      

                  	
                    (a)

                  	
                    Notwithstanding
      anything to the contrary in this Agreement, no severance payments or
      benefits or gross-up payments payable to Executive, if any, pursuant to
      this Agreement that, when considered together with any other severance
      payments or separation benefits, is considered deferred compensation under
      Section 409A (together, the “Deferred Payments”) will be payable until
      Executive has a “separation from service” within the meaning of Section
      409A.  Similarly, no severance payable to Executive, if any,
      pursuant to this Agreement that otherwise would be exempt from Section
      409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be
      payable until Executive has a “separation from service” within the meaning
      of Section 409A.

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    Further,
      if Executive is a “specified employee” within the meaning of
      Section 409A at the time of Executive’s separation from service
      (other than due to death), any Deferred Payments (including but not
      limited to issuance of shares under outstanding restricted stock units,
      performance shares or performance units, the vesting of which is
      accelerated pursuant to this Agreement, if any) that otherwise are payable
      within the first six (6) months following Executive’s separation from
      service will become payable on the first payroll date that occurs on or
      after the date six (6) months and one (1) day following the date of
      Executive’s separation from service.  All subsequent
      Deferred Payments, if any, will be payable in accordance with the payment
      schedule applicable to each payment or benefit.  Notwithstanding
      anything herein to the contrary, in the event of Executive’s death
      following Executive’s separation from service but prior to the six (6)
      month anniversary of Executive’s separation from service (or any later
      delay date), then any payments delayed in accordance with this paragraph
      will be payable in a lump sum as soon as administratively practicable
      after the date of Executive’s death and all other Deferred Payments will
      be payable in accordance with the payment schedule applicable to each
      payment or benefit.  Each payment and benefit payable under the
      Agreement is intended to constitute a separate payment for purposes of
      Section 1.409A-2(b)(2) of the Treasury
  Regulations.

                  

          

          
            
               

            

            
              -3-

              
                

              

            

            
               

            

          

          
            	
                     
      

                  	
                    (c)

                  	
                    Any
      severance payment that satisfies the requirements of the “short-term
      deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury
      Regulations shall not constitute Deferred Payments for purposes of the
      Agreement.  Any severance payment that qualifies as a payment
      made as a result of an involuntary separation from service pursuant to
      Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not
      exceed the Section 409A Limit shall not constitute Deferred Payments
      for purposes of the Agreement.  For purposes of this subsection
      (c), “Section 409A Limit” will mean the lesser of two (2) times: (i)
      Executive’s annualized compensation based upon the annual rate of pay paid
      to Executive during the Company’s taxable year preceding the Company’s
      taxable year of Executive’s separation from service as determined under
      Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal
      Revenue Service guidance issued with respect thereto; or (ii) the
      maximum amount that may be taken into account under a qualified plan
      pursuant to Section 401(a)(17) of the Code for the year in which
      Executive’s employment is
terminated.

                  

          

          

          
            	
                     
      

                  	
                    (d)

                  	
                    The
      foregoing provisions are intended to comply with the requirements of
      Section 409A so that none of the severance payments and benefits to be
      provided under the Agreement will be subject to the additional tax imposed
      under Section 409A, and any ambiguities herein will be interpreted to so
      comply.  Executive and the Company agree to work together in
      good faith to consider amendments to the Agreement and to take such
      reasonable actions which are necessary, appropriate or desirable to avoid
      imposition of any additional tax or income recognition prior to actual
      payment to Executive under Section
409A.”

                  

          

          

          7.  
          Full Force and
Effect.  To the extent not expressly amended hereby, the
Agreement shall remain in full force and effect.

          

          8.  
          Entire
Agreement.  This Amendment and the Agreement constitute the
full and entire understanding and agreement between the parties with regard to
the subjects hereof and thereof.

          

          9.  
          Counterparts.  This
Amendment may be executed in counterparts, all of which together shall
constitute one instrument, and each of which may be executed by less than all of
the parties to this Amendment.

          

          10.           Amendment.  Any
provision of this Amendment may be amended, waived or terminated by a written
instrument signed by the Company and Executive.

          
            
               

            

            
              -4-

              
                

              

            

            
               

            

          

          11.           Governing
Law.  This Amendment shall be governed by the laws of the State
of California (with the exception of its conflict of laws
provisions).

          

          (Signature page
follows)

          
            
               

            

            
              -5-

              
                

              

            

            
               

            

          

          IN WITNESS WHEREOF, the
undersigned parties have caused this Amendment to be executed as of the date
first set forth above.

          

          

          
            
              	
                      MICHAEL
      P. GREGOIRE

                    	 
      	
                      TALEO
      CORPORATION

                    	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      /s/ Michael P. Gregoire

                    	 
      	
                      /s/ Josh Faddis

                    	 
      
	
                      Signature

                    	 
      	
                      Signature

                    	 
      
	 
      	 
      	 
      	 
      
	
                      Michael P. Gregoire

                    	 
      	
                      Josh Faddis

                    	 
      
	
                      Print
      Name

                    	 
      	
                      Print
      Name

                    	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                      VP, Legal

                    	 
      
	 
      	 
      	
                      Print
      Title

                    	 
      

            

          

           

           

          (Signature
page to Amendment to Michael P. Gregoire Employment
Agreement)

        

          

         

      

    

     
-6-

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