Document:

Unassociated Document

Black Hills Corporation

Short- Term Incentive Plan for Officers

Award Agreement

(Effective for Plan Years Beginning on or after January 1, 2010)

 

 

STIPAward2010

  

  

  

Contents

 

 

	
Article 1
	
Effective Date and Purpose of Plan
	
1

	  	  	  
	
Article 2
	
Definitions
	
1

	  	  	  
	
Article 3
	
Eligibility and Participants
	
2

	  	  	  
	
Article 4
	
Administration of the Plan
	
2

	  	  	  
	
Article 5
	
Target Incentive Award and Performance Measures
	
2

	  	  	  
	
Article 6
	
Termination Provisions
	
3

	  	  	  
	
Article 7
	
Change in Control
	
3

	  	  	  
	
Article 8
	
Forfeiture and Repayment
	
5

	  	  	  
	
Article 9
	
Payment of Incentive Award
	
7

	  	  	  
	
Article 10
	
Powers of Board of Directors
	
7

	  	  	  
	
Article 11
	
Assignability
	
8

	  	  	  
	
Article 12
	
No Contract of Employment
	
8

	  	  	  
	
Article 13
	
Right to Incentive Award
	
8

	  	  	  
	
Article 14
	
Governing Law
	
8

	  	  	  
	
Article 15
	
No Tax Qualified or ERISA Plan
	
8

  

  

  

Black Hills Corporation

Short-Term Incentive Plan for Officers

Award Agreement

(Effective for Plan Years Beginning on or after January 1, 2010)

You have been selected to be a participant in the Black Hills Corporation Short-Term Incentive

Plan (the “STIP”).  The STIP is granted under the Cash-Based Awards provisions of the Black Hills Corporation 2005 Omnibus Incentive Plan (the “Plan”).

Target STIP Award:  ______ percent of base salary

Performance Period:  January 1, _____ to December 31, _____

Performance Measure: Earnings Per Share (“EPS”).

THIS AGREEMENT (the “Agreement”) effective ________________, represents the award opportunity under the STIP provided by Black Hills Corporation, a South Dakota corporation (the “Company”), to the Participant named above, pursuant to the provisions of the Plan.

The Plan provides a complete description of the terms and conditions governing the award. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. 

All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein. 

The parties hereto agree as follows:

Article 1. Effective Date and Purpose of Plan

The Performance Period commences on January 1, ____ and ends on December 31, _____.

Article 2. Definitions

Unless the context otherwise specifically requires, the following words as used herein shall have the following meanings: 

"BASE SALARY" shall mean the annual base salary in effect for a Participant at the end of a plan year, including any compensation reduction under a cash or deferred arrangement under Section  401(k) of the Internal Revenue Code, under a flexible benefit program under Section 125 of the Internal Revenue Code, or under the Black Hills
Corporation Nonqualified Deferred Compensation Plan, but not including any amounts paid to the Participant as overtime, bonus, commission or incentive compensation, nor reimbursements and expense allowances, fringe benefits, moving expenses, nonqualified deferred compensation, or welfare benefits.

  

1

  

  "BOARD" means the Board of Directors of the Company.

  "COMMITTEE" shall mean the Compensation Committee of the Board.

  "COMPANY" shall mean Black Hills Corporation, a South Dakota corporation with principal offices in the state of South Dakota.

  "EMPLOYEE" shall mean any person who is in the regular full-time employment of the Company or a Subsidiary, as determined by the personnel rules and practices of the Company or a Subsidiary.  The term does not include persons who are retained by the Company or a Subsidiary solely as consultants.

  "INCENTIVE AWARD" shall mean the incentive compensation to be awarded to a Participant as determined under Article 5.

  "PARTICIPANTS" shall mean those eligible employees elected to participate in the Plan under Article 3 below.

  "PLAN" means the 2005 Omnibus Incentive Plan.

  "PLAN YEAR" shall mean the 12 months beginning on January 1 and ending on the following December 31.

  "SUBSIDIARY" shall mean any business organization in which Company, directly or indirectly, owns a majority of its voting power or voting equity securities or equity interest.

Article 3. Eligibility and Participants

     Employees eligible to participate in this Plan shall be the officers of the Company or a Subsidiary as designated by the Committee.  

Article 4. Administration of the Plan

This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time by the Board, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer,
construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, in its sole discretion, all of which shall be binding upon the Participant. 

Any inconsistency between the Agreement and the Plan shall be resolved in favor of the Plan.

Article 5. Target Incentive Award and Performance Measures

Participant was assigned a target incentive award determined as a percent of a Participant's Base Salary.  Participant shall have the opportunity to earn various percentages of the target incentive award.  The percentage of the target incentive award to be earned by the Participant shall be determined by the application
of objective performance measurements determined by the Committee,

  

2

  

such as earnings per share.  The application of the Participant's target incentive award to actual performance results creates the actual award for each Participant ("Incentive Award").  Attached hereto as Attachment 1, is the performance measures to be used for the ____ Plan Year. 

Article 6. Termination Provisions

Except as provided below in this Article 6 and in Article 7, a Participant shall be eligible for payment of the Incentive Award, as determined in Article 5, only if the Participant’s employment with the Company or a Subsidiary continues through the date of payment.

If Participant Retires, suffers a Disability, or dies during the Performance Period, the Participant (or the Participant’s estate) shall be entitled to that proportion of the Incentive Award as such Participant is entitled to under Article 5 for such Performance Period that the number of full months of participation during the Performance
Period bears to the total number of months in the Performance Period. The form and timing of the payment of such Performance Shares shall be as set forth in Article 9. 

“Retirement” or “Retires” means a Separation from service by a Participant on or after (i) attaining the age of 55 with at least 5 years of service, or (ii) attaining the age of 65. 

“Separation from service” (as defined in Treasury Regulation Section 1.409A-1(h)) during the Performance Period other than (i) due to Retirement, Disability, or death, or (ii) following a Change in Control shall require forfeiture of this entire award, with no payment to the Participant.

Article 7. Change in Control

Notwithstanding anything herein to the contrary, in the event of a Change in Control, the Participant shall be entitled to that proportion target incentive award as such Participant is entitled to under Article 5 for such Performance Period that the number of full months of participation during the Performance Period (as of the effective
date of the Change in Control) bears to the total number of months in the Performance Period. 

"Change in Control" of the Company shall be deemed to have occurred (as of a particular day, as specified by the Board) upon the occurrence of any of the following events:

	 	
  (a)
	
The acquisition in a transaction or series of transactions within a 12 month period by any Person of Beneficial Ownership of thirty percent (30%) or more of the combined voting power of the then outstanding shares of common stock of the Company; provided, however, that for purposes of this Agreement, the following acquisitions will not constitute a Change in Control: (A) any acquisition by the Company; (B) any
acquisition of common stock of the Company by an underwriter holding securities of the Company in connection with a public offering thereof; and (C) any acquisition by any Person pursuant to a transaction which complies with subsections (c) (i), (ii) and (iii), below;

	 	
  (b)
	
Individuals who, as of December 31, 2007 are members of the Board (the "Incumbent Board"), cease for any reason to constitute at least a majority of the members of the Board within a 12 month period; provided, however, that if the election, or nomination for election by the Company's common shareholders, of any new director was approved

  

3

  

	
  
	
by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated under the Exchange
Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a "Proxy Contest") including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest;

	 	
  (c)
	
Consummation, following shareholder approval, of a reorganization, merger, or consolidation of the Company and/or its subsidiaries, or a sale or other disposition (whether by sale, taxable or non-taxable exchange, formation of a joint venture or otherwise) of fifty percent (50%) or more of the assets of the Company and/or its subsidiaries (each a “Business Combination”), unless, in each case, immediately
following such Business Combination, (i) all or substantially all of the individuals and entities who were beneficial owners of shares of the common stock of the Company immediately prior to such Business Combination beneficially own, directly or indirectly, more that fifty percent (50%) of the combined voting power of the then outstanding shares of the entity resulting from the Business Combination or any direct or indirect parent corporation thereof (including, without limitation, an entity which as a result
of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one (1) or more subsidiaries)(the “Successor Entity”); (ii) no Person (excluding any Successor Entity or any employee benefit plan or related trust, of the Company or such Successor Entity) owns, directly or indirectly, thirty percent (30%) or more of the combined voting power of the then outstanding shares of common stock of the Successor Entity, except to the extent that such
ownership existed prior to such Business Combination; and (iii) at least a majority of the members of the Board of Directors of the entity resulting from such Business Combination or any direct or indirect parent corporation thereof were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such Business Combination;  or

	 	
  (d)
	
Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company, except pursuant to a Business Combination that complies with subsections (c) (i), (ii), and (iii) above. 

	 	
  (e)
	
A Change in Control shall not be deemed to occur solely because any Person (the "Subject Person") acquired Beneficial Ownership of more than the permitted amount of the then outstanding Common Stock as a result of the acquisition of Common Stock by the Company which, by reducing the number of shares of Common Stock then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons,
provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Common Stock by the Company, and after such stock acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional Common Stock which increases the percentage of the then outstanding Common Stock Beneficially Owned by the Subject Person, then a Change in Control shall occur.

  

4

  

 

	 	
  (f)
	
A Change in Control shall not be deemed to occur unless and until all regulatory approvals required in order to effectuate a Change in Control of the Company have been obtained and the transaction constituting the Change in Control has been consummated.

 

 

Notwithstanding the above provisions of this definition, to the extent that any payment under the Agreement due to a Change in Control is subject to Code Section 409A for deferred compensation, then the term “Change in Control” shall be construed in a manner that is consistent with
Code Section 409A (a) (2)(A)(v), but only to the extent inconsistent with the above provisions as determined by the Board.

Article 8.  Forfeiture and Repayment.

	 	
  (a)
	
In the event the Participant incurs a separation from service for a reason other than those described in Article 6 herein during the Performance Period this entire award will be forfeited, unless the separation from service follows a Change in Control. 

 

	 	
  (b)
	
Without limiting the generality of Article 8(a), the Company reserves the right to cancel the Incentive Award awarded hereunder, whether or not earned, and require the Participant to repay all income or gains previously realized in respect of such Incentive Award, in the event of the occurrence of any of the following events:

 

	 	 	
  (i)
	
 termination of Participant’s employment for Cause;

 

	 	
  
	
  (ii)
	
within one year following any termination of Participant’s employment, the Board determines that the Participant engaged in conduct before the Participant’s termination date that would have constituted the basis for a termination of employment for Cause;

 

	 	
  
	
  (iii)
	
at any time during the Participant’s employment or the twelve month period immediately following any termination of employment, Participant:

 

	 	 	 	
  (x)
	
publicly disparages the Company, any of its affiliates or any of its or their officers, directors or senior executive employees or otherwise makes any public statement that is materially detrimental to the interests or reputation of the Company, any of its affiliates or such individuals; or

 

	 	 	 	
  (y)
	
violates in any material respect any policy or any code of ethics or standard of behavior or conduct generally applicable to Participant, including the Code of Conduct; or

 

	 	
  
	
  (iv)
	
Participant engages in any fraudulent, illegal or other misconduct involving the Company or any of its affiliates, including but not limited to any breach of fiduciary duty, breach of a duty of loyalty, or interference with contract or business expectancy.

 

  

5

  

	 	
  (c)
	
If the Board determines that the Participant’s conduct, activities or circumstances constitute events described in Article 8(b), in addition to any other remedies the Company has available to it, the Company may in its sole discretion:

 

	
  
	
  (i)
	
cancel any Incentive Award, whether or not issued; and/or

 

	
  
	
  (ii)
	
require the Participant to repay an amount equal to all income or gain realized in respect of all such Incentive Award.  The amount of repayment shall include, without limitation, amounts received in connection with the delivery or sale of Shares of such Incentive Award or cash paid in respect of any Incentive Award.  

 

	 	 	
There shall be no forfeiture or repayment under Article 8(b) following a Change-in-Control.  
 

 

	 	
  (d)
	
The Board, in its discretion, shall determine whether a Participant’s conduct, activities or circumstances constitute events described in Article 8(b) and whether and to what extent the Incentive Award shall be forfeited by Participant and/or a Participant shall be required to repay an amount pursuant to Article 8(c).  The Board shall have the authority to suspend the payment, delivery or settlement
of all or any portion of such Participant’s outstanding Incentive Award pending an investigation of a bona fide dispute regarding Participant’s eligibility to receive a payment under the terms of this Agreement as determined by the Board in good faith.

 

	 	
  (e)
	
For purposes of applying this provision:

 

	
  
	
  (i)
	
“Cause” means any of the following:

 

	 	
  (u)
	
a Participant’s violation of his or her material duties to the Company or any of its affiliates, which continues after written notice from the Company or any affiliate to cure such violation;

 

	 	
  (v)
	
Participant’s willful failure to follow the lawful written directives of the Board in any material respect;

 

	 	
  (w)
	
Participant’s willful misconduct in connection with the performance of any of his or her duties, including but not limited to falsifying or attempting to falsify documents, books or records of the Company or any of its affiliates, making or delivering a false representation, statement or certification of compliance to the Company, misappropriating or attempting to misappropriate funds or other property of the
Company or any of its affiliates, or securing or attempting to secure any personal profit in connection with any transaction entered into on behalf of the Company or any of its affiliates;

 

  

6

  

	 	
  (x)
	
Participant’s breach of any material provisions of this Agreement or any other non-competition, non-interference, non-disclosure, confidentiality or other similar agreement executed by Participant with the Company or any of its affiliates;

 

	 	
  (y)
	
conviction (or plea of nolo contendere) of the Participant of any felony, or a misdemeanor involving false statement, in connection with conduct involving the Company or any of its subsidiaries or affiliates; or

 

	 	
  (z)
	
intentional engagement in any activity which would constitute or cause a breach of duty of loyalty, or any fiduciary duty to the Company or any of its subsidiaries or affiliates.

 

	
  
	
  (ii)
	
“Code of Conduct” means any code of ethics or code of conduct now or hereafter adopted by the Company or any of its affiliates, including to the extent applicable the Company’s Employee Conduct and Disclosure Policy dated November 22, 1999, as amended or supplemented from time to time, and the Company’s or subsidiary Risk Management Policies and Procedures, as amended, supplemented or replaced
from time to time.

 

	 	
  (f)
	
Participant agrees that the provisions of this Article 8 are entered into in consideration of, and as a material inducement to, the agreements by the Company herein as well as an inducement for the Company to enter into this Agreement, and that, but for Participant’s agreement to the provisions of this Article 8, the Company would not have entered into this Agreement. 

 

Article 9.  Payment of Incentive Award

     The Incentive Award shall be paid to the Participant in the form of 50 percent cash and 50 percent common stock of the Company after required tax withholding.  Participants who have stock ownership guidelines in place and have met the guidelines established
may elect to receive the payment 100 percent cash after required tax withholding.  

Stock utilized for any Incentive Award will be from shares authorized under the Plan.  The value of stock to be included in any Incentive Award shall be determined by reference to the closing price of such stock on the New York Stock Exchange on the last trading day on which such shares were traded preceding the date the Incentive
Awards are paid.              

Article 10. Powers of Board of Directors

The Board of Directors may suspend or terminate the Plan, in whole or in part, at any time, or may, from time to time, amend the Plan in such respects as the Board may deem advisable, provided that no such amendment shall withdraw the administration and interpretation of the Plan from the Committee.

  

7

  

Article 11. Assignability

No right to receive payments under this Agreement shall be subject to voluntary or involuntary alienation, assignment or transfer.

Article 12. No Contract of Employment 

Neither the action taken by the Company in establishing the Plan or any action taken by it or by the Committee under the provisions hereof or any provision of the Plan shall be construed as giving to any Participant the right to be retained in the employment of the Company.

Article 13. Right to Incentive Award

Notwithstanding anything contained herein, no Participant shall have any right to receive any Incentive Award until the Committee determines the amount of the Incentive Award, which determination is to be made in January of each Plan Year based on the application of the target incentives and performance measures to the preceding year and
no Participant shall be considered to have earned any portion of any Incentive Award until determination by the Committee.  The Committee reserves the right in its sole discretion to not grant any Incentive Award whether or not any Participant has met target incentive and performance measures; provided, that in the event of a Change in Control, a Participant's Incentive Award shall be determined as of the date of the Change in Control and shall be paid 30 days after the day of the Change in Control.

Article 14. Governing Law

 This agreement shall be governed by and construed in accordance with the laws of the State of South Dakota.

Article 15. No Tax Qualified or ERISA Plan

This is not intended to be a tax qualified plan nor a plan for the purposes of ERISA.  

The following parties have caused this Agreement to be executed effective as of January 1, ____.

Black Hills Corporation

       By:
_______________________

___________________________

Participant

___________________________

Date

  

8exhibit_10-5.htm

     

    EXHIBIT
10.5

    

      
        	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 
      
	
                Section A:
      Additions

              	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 
      
	
                Product

              	 	
                Qty

              	 	 
      	 	
                Unit
      Price

              	 	 	
                Total
      NRC Selling Price

              	 	 	
                Total
      MRC Selling Price

              	 	
                Equinix
      Use

              
	
                None

              	 	 	-	 	 
      	 	$	-	 	 	$	-	 	 	$	-	 	 
      
	
                SECTION
      TOTAL:

              	 	 	 	 	 
      	 	 	 	 	 	$	0.00	 	 	$	0.00	 	 
      
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      
	
                Section B:
      Deletions

              	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      
	
                Product

              	 	
                Qty

              	 	
                Serial
      Number

              	 	
                Unit
      Price

              	 	 	 	 	 	 	
                Total
      MRC Selling Price

              	 	
                Bill
      To Stop Date

              
	
                None

              	 	 	-	 	 
      	 	$	-	 	 	 	 	 	 	$	-	 	 
      
	
                SECTION
      TOTAL:

              	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	$	0.00	 	 
      
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      
	
                Section C:
      Continuing Services-Price Change

              	 	 	 	 	 	 	 	 	 	 	 	 	 
      
	
                Product

              	 	
                Qty

              	 	
                Serial
      Number

              	 	 	 	 	 	
                Current
      Price

              	 	 	
                New
      Price

              	 	
                Date
      of Price Change

              
	
                None

              	 	 	-	 	 
      	 	 	 	 	 	$	-	 	 	$	-	 	 
      
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      
	
                Section D:
      Continuing Services

              	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      
	
                Product

              	 	
                Qty

              	 	
                Serial
      Number

              	 	
                Unit
      Price

              	 	 	 	 	 	 	
                Total
      MRC Selling Price

              	 	
                Equinix
      Use

              
	
                Private
      Cage – CAG10002

              	 	 	1	 	 
      	 	$	33,600.00	 	 	 	 	 	 	$	33,600.00	 	 
      
	
                Cabinet-Eq
      4 kVA – CAB10001

              	 	 	16	 	 
      	 	$	0.00	 	 	 	 	 	 	$	0.00	 	 
      
	
                208V
      AC Power – Primary 20A – POW10009

              	 	 	10	 	 
      	 	$	520.00	 	 	 	 	 	 	$	5,200.00	 	 
      
	
                208V
      AC Power – Redundant 20A – POW10010

              	 	 	10	 	 
      	 	$	260.00	 	 	 	 	 	 	$	2,600.00	 	 
      
	
                208V
      AC Power  3P – Primary 30A – POW10045

              	 	 	4	 	 
      	 	$	1,349.00	 	 	 	 	 	 	$	5,396.00	 	 
      
	
                208V
      AC Power 3P – Redundant 30A – POW10046

              	 	 	4	 	 
      	 	$	777.00	 	 	 	 	 	 	$	3,108.00	 	 
      
	
                Demarcation
      Rack – CAB00134

              	 	 	1	 	 
      	 	$	0.00	 	 	 	 	 	 	$	0.00	 	 
      
	
                Intra-Customer
      Cross Connect – CC90011

              	 	 	4	 	 
      	 	$	0.00	 	 	 	 	 	 	$	0.00	 	 
      
	
                Cross
      Connect Fiber – Multi Mode – CC10001

              	 	 	2	 	 
      	 	$	275.00	 	 	 	 	 	 	$	550.00	 	 
      
	
                SECTION
      TOTAL:

              	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	$	50,454.00	 	 
      
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      

      

      

      NOTE:
Information in this document marked with “[********]” has been omitted and filed
separately with the Securities and Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.

      

      

      

      

      TERMS
AND CONDITIONS

      

      SOW
Introduction

      

      This
Statement of Work (the "SOW")
is between Equinix Operating Co., Inc. (Equinix, Inc. if the SOW is for Services
delivered in Equinix's Newark or Secaucus IBX Centers; (in either case, "Equinix")
and the customer identified above ("Customer"),
who wishes to order the products or services listed above (each a "Service"),
each of which will be delivered at the IBX Center designated above. This SOW
will be of no force or effect unless (a) it is

      executed
by both parties, and (b) Customer and Equinix have entered into an MSA (under
which this SOW is executed) that is currently in effect as of the SOW Effective
Date. If the MSA references "Sales Orders" this SOW is a Sales Order for
purposes of the MSA.

      

      THIS
SOW REPLACES AND SUPERSEDES THE ORDER # 71124 IN EFFECT AS OF THE SOW EFFECTIVE
DATE (DEFINED BELOW) (THE "CANCELED ORDER)"). AS OF THE SOW EFFECTIVE DATE, THE
CANCELED ORDER SHALL NO LONGER HAVE ANY FORCE OR EFFECT. CUSTOMER ACKNOWLEDGES
THAT IF EQUINIX DOES NOT RECEIVE THIS SOW EXECUTED BY CUSTOMER AT THE FAX NUMBER
OR

      ADDRESS
BELOW ON OR BEFORE MARCH 25, 2010, EQUINIX MAY REFUSE TO SIGN THIS
SOW.

       

      Term
of this SOW (the “Service Term")

      This SOW
will have an initial service term (the "Initial
Service Term") which will commence on the SOW Effective Date and will
terminate on the Initial Service Term End Date (as defined below).

       

      After the
Initial Service Term, the Service Term will automatically renew for additional
service terms of one (1) year each, unless either party provides written
notification to the other party at least ninety (90) days prior to the end of
the then-current Service Term that it has elected to terminate this SOW, in
which event this SOW will terminate at the end of then-current Service
Term.

      

      If this
SOW is still in effect on the date the MSA terminates, then this SOW will
automatically terminate on the MSA termination date. Notwithstanding the
foregoing sentence or anything in this SOW or the MSA to the contrary, if this
SOW is still in effect on the date the MSA Terminates by Expiring (as defined
herein), this SOW will remain in effect after the MSA terminates, and all of the
terms and conditions of the MSA (including all limitation of liability and
indemnification provisions) will continue to apply to (and will be deemed to be
incorporated by reference into) this SOW and all Services until this SOW expires
or terminates.

      
        
          
            _________________________

            [********]
Confidential Treatment Requested.

            

             

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      Prices
and Billing

      Any
change by Equinix to the prices set forth above will be made in accordance with
the terms of the MSA. Prices shown above do not include any applicable taxes,
surcharges or shipping charges which are the responsibility of the
Customer.

      

      Notwithstanding
anything in this SOW to the contrary, Customer's obligation to pay the total MRC
and total NRC set forth above will begin on the Billing Commencement Date and if
Equinix is unable to deliver any Service on or before the Billing Commencement
Date because Customer has failed to provide Equinix with the information
necessary to deliver the Service (e.g., configuration information), Customer
will be obligated to pay for such Service beginning on the Billing Commencement
Date even if the Service has not been delivered.

      

      Pricing
and Billing

      

      Section
A: Additions - These Services, if any, will start billing on the later of the
Expected Delivery Date and the date the Service is actually delivered by Equinix
(the "Billing
Commencement Date").

      

      Section
B: Deletions - These Services, if any, will stop billing on March 31,
2010.

      

      Section
C: Continuing Services - Price Change These Services, if any, will have their
prices changed on the Date of Price Change as listed above.

      

      

      Section
D: Continuing Services - These Services, if any, will not have their prices
changed pursuant to this SOW.

       

      Price
Increase:

      

      Notwithstanding anything to the
contrary in the MSA or this SOW, Customer shall be obligated to pay Equinix the
MRC and NRC for the Services as expressly set forth herein throughout the term
of this SOW. Additionally, commencing at the beginning of the [********]year after the Billing Commencement
Date; the MRC will automatically increase for all Services at a rate of
[********]per year;
provided

      however, if Equinix's cost to provide
power Services increase by more than [********]per year, Equinix may increase the
rates for Customer's power Service by such increased costs and provide Customer
with written documentation. Customer shall pay Equinix such increased rates
pursuant to this SOW and the MSA throughout the Term, including renewal periods.
Any additional Service(s) ordered by

      Customer
on a subsequent order that is not specifically listed above, shall be subject to
the then-current rate for such Service, and shall be subject to the automatic
price increase set forth herein.

      

      Private
Cage MRC:

      

      For
Purposes of this SOW:

      

      Period
1 shall begin on April 1, 2010 and end on September 30, 2010.

      

      Period
2 shall begin on October 1, 2010 and end on December 31, 2010.

      

      Period
3 shall begin on January 1, 2011 and end on June 30, 2011.

      

      Period
4 shall begin on July 1, 2011 and end on December 31, 2011.

      

      Period
5 shall begin on January 1, 2012 and end on September 30, 2012.

      

      Period
6 shall begin on October 1, 2012 and end on the Initial Service Term End
Date

       

      a)
Subject to subsections (b), (c), (d), (e), (f) and (g) below, (i) during Period
1, Customer shall pay the Private Cage MRC in the amount of Thirty Three
Thousand Six Hundred Dollars ($33,600), (ii) during Period2, Customer shall pay
the Private Cage MRC in the amount of Thirty Eight Thousand Four Hundred Dollars
($38,400), (iii) during Period 3, Customer shall pay the Private Cage MRC in the
amount of Fifty Thousand Four Hundred Dollars ($50,400), (iv) during Period 4,
Customer shall pay the Private Cage MRC in the amount of Seventy Four Thousand
Four Hundred Dollars ($74,400), (V) during Period 5, Customer shall pay the
Private Cage MRC in the amount of Seventy Nine Thousand Two Hundred Dollars
($79,200), (vi) during Period 6, Customer shall pay the Private Cage MRC in the
amount of One Hundred Two Thousand Dollars ($102,000).

      

      b) Subject to subsection (c) below,
in the event that [********]at any time prior to the beginning of
Period 2, Customer shall pay the Private Cage MRC in the amount of ($38,400)
from the beginning of the billing period in which [********]through the end of Period 2.

      

      c) Subject to subsection (d) below,
in the event that [********] at any time prior to the beginning
of Period 3, Customer shall pay the Private Cage MRC in the amount of ($50,400)
from the beginning of the billing period in which [********] through the end of Period
3.

      

      d) Subject to subsection (e) below,
in the event that [********] at any time prior to the beginning
of Period 4, Customer shall pay the Private Cage MRC in the amount of ($74,400)
from the beginning of the billing period in which [********] through the end of Period
4.

      

      e) Subject to subsection (f) below,
in the event that [********] at any time prior to the beginning
of Period 5, Customer shall pay the Private Cage MRC in the amount of ($79,200)
from the beginning of the billing period in which [********] through the end of Period
5.

      
        
          
            _________________________

            [********]
Confidential Treatment Requested.

            

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      f) Subject to subsection (g) below,
in the event that [********] at any time prior to the beginning
of Period 6, Customer shall pay the Private Cage MRC in the amount of ($102,000)
from the beginning of the billing period in which [********]through the end of Period
6.

      

      g)
After Period 6, the Private Cage MRC shall be subject to increase pursuant to
the SOW.

      

      Further,
Customer understands that the pricing set forth above does not include standard
NRC fees for the installation of cabinet and power circuits which shall be
billed in addition to all fee set forth in a subsequent order.

      

      The
MRC set forth in this SOW applies only to the Cage and power in the Cage, In the
event that Customer orders services other than the Cage and power in the Cage,
Customer shall pay additional charges(monthly recurring and non-recurring) for
such services.

      

      Additional
Cabinets:

      

      Customer may purchase up to Fifty Six
(56) additional cabinets that are contiguous with Cage 33605 ("Additional
Cabinets") according to the following process. At any time before [********], Customer may purchase these
Additional Cabinets by executing and delivering the Statement of Work that will
be attached to the notification within [********]business days. If Customer fails to
execute and deliver such Statement of Work to Equinix within this timeframe,
Customer's right shall automatically extinguish with respect to the Additional
Cabinets. 

      Power
Limitation

      Customer
may not draw more than the kVA or kW amount listed above ("Power Cap") in the
Cage or Cabinet. If Equinix measures Customer's power draw and the power draw
exceeds the Power Cap, Equinix will provide written notification to Customer and
require Customer to reduce the power draw to the Power Cap within 72 hours of
the notification. If Customer does not resolve the situation with a mutually
agreeable plan, Equinix may

      disconnect
Customer's power circuits until the aggregate rated capacity of all circuits
equals the Power Cap.

      

      Other
Terms and Condition

      Notwithstanding
anything in the MSA or this SOW to the contrary, This SOW is governed by, and
incorporated by reference in, the MSA. All exhibits, addenda and policy
documents referenced in this SOW are incorporated by reference in this SOW, and
therefore in the MSA.

      

      Equinix's
provision of any Service, and Customer's use of such Service, are at all times
governed by the MSA, even if Customer begins using such Service prior to the
Billing Commencement Date.

      

      If the
MSA does not specifically address the procedure for disputing charges, and if
Customer wishes to dispute any charge billed to Customer by Equinix (a "Disputed
Amount"), Customer must submit a good faith claim regarding the Disputed
Amount with documentation as may reasonably be required to support the claim
within ninety (90) days of receipt of the initial invoice sent by Equinix
regarding the Disputed Amount. If Customer does not submit a documented claim
within ninety (90) days of receipt of the initial invoice sent by Equinix
regarding such Disputed Amount, notwithstanding anything in this Agreement to
the contrary, Customer waives all rights to dispute the Disputed Amount and
Customer waives all rights to file a claim thereafter of any kind relating to
such Disputed Amount (and Customer also waives all rights to otherwise claim
that it does not owe such Disputed Amount or to seek any set-offs or
reimbursements or other amounts of any kind based upon or relating to such
Disputed Amount). If the MSA includes a provision that specifically describes
the processes relating to Customer's ability to dispute billed charges, then
this paragraph will be of no force and effect.or renewal service term of this
SOW, as the case may be, ends, and thereafter, the service term of the orders
will renew concurrently with the Service Term of this SOW.

      

      Unless
otherwise stated herein, cabinets provided by Equinix in a private cage are open
cabinets, and cabinets in a shared cage are locking cabinets. If Customer
requests cabinet accessories (e.g., shelves, doors, side panels, mounting rails,
etc.) that are not included with a cabinet as described in Equinix's
specifications for the cabinet, Customer will be charged Equinix's list price
for such accessories, unless otherwise stated herein. Customer may provide its
own cabinets in a private cage in accordance with Equinix's policies and
procedures; however, Customer must use Equinix-provided cabinets in a shared
cage. Customer acknowledges that the prices for Services set forth in this SOW
apply even if Customer provides its own cabinets in a private cage. Customer
agrees to provide Equinix access to the Cage and the cabinets, racks and/or
equipment contained therein as necessary for the performance of the Services as
set forth in this SOW.

      

      If the
entity providing the products and/or services (the "Equinix
Provider") to Customer set forth above is not currently a party to the
MSA, notwithstanding anything in the MSA to the contrary, the parties agree that
the execution of the SOW will automatically (i.e., without further action by
either party) result in the Equinix Provider becoming, as of the SOW Effective
Date, a party to the MSA (such that all references to Equinix under the MSA,
including, without limitation, references to limitation of liability and
indemnification, will be deemed to include the Equinix Provider, as well as any
affiliates of Equinix that were already parties to the MSA). While Equinix is
under no obligation to execute this SOW, Customer acknowledges that Equinix may
refuse to execute this SOW if Customer delivers it to Equinix after the "Valid
Until" date set forth above.

      

      Type
II SAS 70 (or equivalent) certification and reporting:

      

      With respect to the Services
expressly set forth in this SOW, the Equinix's IBX Center expressly set forth
above currently maintains a SAS 70 Type II certification and will use reasonable
efforts to maintain such certification during the Initial Term of this SOW, Upon
request from Customer, Equinix shall provide to Customer copies of Equinix's
annual Type II SAS 70 (or equivalent) reports and certifications for the purpose
of determining the adequacy of Equinix's systems, controls, security, integrity,
fees, and confidentiality, as provided in Equinix's then-current SAS 70 Report.
In the event Equinix does not retain the SAS 70 Type II certification, it will
continue to cooperate in good faith in assisting Customer and its auditors in
obtaining their own SAS 70 Type II certification. [********]

      Definitions

      Unless
otherwise stated herein, all capitalized terms in this SOW will have the meaning
ascribed to them below:

       

      Defn-Cage

      Cage:
The cage in the IBX Center in which the Services are delivered by Equinix. If
the cage is a shared cage, "Cage" will refer to the cabinets in the shared cage
that are licensed by Customer.

      Defn-Expected
Delivery Date

      
        
          
            _________________________

            [********]
Confidential Treatment Requested.

            

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      Expected
Delivery Date: The date Equinix expects to deliver the Services to
Customer as determined by Equinix upon the booking of this SOW by
Equinix.

      Defn-IBX

      IBX
Center: The International Business Exchange Center (formerly Internet
Business Exchange Center) identified at the top of this SOW.

      Defn-Initial
Term Duration

      Initial
Service Term: Five (5) years.

      Defn-InitialTerm
End Date

      Initial
Service Term End Date: March 31, 2015.

       

      Defn-MRC

       

      MRC:
Monthly recurring charges.

       

      Defn-MSA

      MSA:
The Master Service Agreement (or the document with a similar function if no
document entitled Master Service Agreement has been signed by the parties)
between Customer and Equinix Inc., and/or one or more of Equinix

      Inc’s
wholly-owned subsidiaries, that is still in effect as of the SOW Effective
Date.

      Defn-MSA
Terminating by Expiring

      MSA
Terminates by Expiring: The MSA Terminates by Expiring only where (i) the
MSA expires on a date certain set forth in the MSA: or (ii) the termination of
the MSA results from a party notifying the other party pursuant to the MSA that
it does not wish for the MSA to renew at the end of the MSA's then-current
term.

      Defn-NRC

      NRC:
Non-recurring charges.

      Defn-SOW
Effective Date

      SOW Effective Date and Billing
Commencement Date: April 1, 2010.

      Return
SOW

      Digital
signatures are not acceptable. Please sign and return all referenced exhibits,
addenda and/or policy documents with this order. Failure to do so may result in
a delay in processing.

      

      Sending
Instructions:

      

      1) Fax a
signed copy of this SOW to (650) 618-1857, or

      

      2) Email
to incomingdocs@equinix.com

      

      (if
file size is larger than 10mb, please separate multiple documents or zip
file);

      

      and if
you require original executed documents,

      

      3) Mail
two (2) sets of originals to: Equinix, Inc., Attn: Contracts Dept.; 301 Velocity
Way, 5th Floor, Foster City, CA 94404.

       

      RSOW_STD_110309

      RSOW_CBM_V9_031910

       

      

       

      
        	
                TALEO
      CORPORATION

              	 
      	 
      	
                EQUINIX
      - US

              
	
                Signature:

              	
                
                   

                  /s/
      Josh Faddis

                

              	
                Billing
      Contact Name:

              	
                Taleo
      Corporation billing information on file

              	
                Signature

              	
                
                   

                  /s/
      Monica Andrews

                

              
	
                Name:

              	
                
                   

                  Josh
      Faddis

                

              	
                Billing
      Address:

              	
                e-mail
      invoice scans to:

                accountspayable@taleo.com

              	
                Name:

              	
                
                   

                  Monica
      Andrews

                

              
	
                Title:

              	
                
                   

                  GVP
      Legal

                

              	
                Phone
      Number:

              	 
      	
                Title:

              	
                
                   

                  Vice
      President Customer Care and Revenue Operations

                

              
	
                Date:

              	
                
                   

                  31
      March 2010

                

              	
                Email
      Address

              	 
      	
                Date:

              	
                
                   

                  March
      31, 2010

                

              
	 
      	 
      	 
      	 
      	 
      	 
      

      

      

       

      
        
          
            _________________________

            [********]
Confidential Treatment Requested.

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