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                                                                    EXHIBIT 10.5

                                TALEO CORPORATION

                        2004 EMPLOYEE STOCK PURCHASE PLAN

     The following constitute the provisions of the 2004 Employee Stock Purchase
Plan of Taleo Corporation.

     1.   Purpose. The purpose of the Plan is to provide employees of the
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions. It is the intention
of the Company to have the Plan qualify as an "Employee Stock Purchase Plan"
under Section 423 of the Code. The provisions of the Plan, accordingly, shall be
construed so as to extend and limit participation in a uniform and
nondiscriminatory basis consistent with the requirements of Section 423.

     2.   Definitions.

          (a)  "Administrator" shall mean the Board or any Committee designated
by the Board to administer the plan pursuant to Section 14.

          (b)  "Board" shall mean the Board of Directors of the Company.

          (c)  "Change in Control" shall mean the occurrence of any of the
following events:

               (i)  Any "person" (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule
13d-3 of the Exchange Act), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the total voting power represented
by the Company's then outstanding voting securities; or

               (ii) The consummation of the sale or disposition by the Company
of all or substantially all of the Company's assets; or

               (iii) The consummation of a merger or consolidation of the
Company, with any other corporation, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or its parent) at
least fifty percent (50%) of the total voting power represented by the voting
securities of the Company, or such surviving entity or its parent outstanding
immediately after such merger or consolidation.

               (iv) A change in the composition of the Board occurring within a
two-year period, as a result of which fewer than a majority of the directors are
Incumbent Directors. "Incumbent Directors" means directors who either (A) are
Directors as of the effective date of the Plan, or (B) are elected, or nominated
for election, to the Board with the affirmative votes of at least a majority of
the Incumbent Directors at the time of such election or nomination (but will not
include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the
Company).

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          (d)  "Code" shall mean the Internal Revenue Code of 1986, as amended.

          (e)  "Committee" means a committee of the Board appointed by the Board
in accordance with Section 14 hereof.

          (f)  "Common Stock" shall mean the common stock of the Company.

          (g)  "Company" shall mean Taleo Corporation, a Delaware corporation.

          (h)  "Compensation" shall mean all base straight time gross earnings,
commissions, overtime and shift premium, but exclusive of payments for incentive
compensation, bonuses and other compensation.

          (i)  "Designated Subsidiary" shall mean any Subsidiary selected by the
Administrator as eligible to participate in the Plan.

          (j)  "Director" shall mean a member of the Board.

          (k)  "Eligible Employee" shall mean any individual who is a common law
employee of the Company or any Designated Subsidiary and whose customary
employment with the Company or Designated Subsidiary is at least twenty (20)
hours per week and more than five (5) months in any calendar year. For purposes
of the Plan, the employment relationship shall be treated as continuing intact
while the individual is on sick leave or other leave of absence approved by the
Company. Where the period of leave exceeds 90 days and the individual's right to
reemployment is not guaranteed either by statute or by contract, the employment
relationship shall be deemed to have terminated on the 91st day of such leave.

          (l)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

          (m)  "Exercise Date" shall mean the first Trading Day on or after
February 1 and August 1 of each year. The first Exercise Date under the Plan
shall be February 1, 2005.

          (n)  "Fair Market Value" shall mean, as of any date, the value of
Common Stock determined as follows:

               (i)  If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system on
the date of determination, as reported in The Wall Street Journal or such other
source as the Board deems reliable;

               (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean of the closing bid and asked prices for the Common Stock on
the date of determination, as reported in The Wall Street Journal or such other
source as the Board deems reliable;

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               (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Board; or

               (iv) For purposes of the Offering Date of the first Offering
Period under the Plan, the Fair Market Value shall be the initial price to the
public as set forth in the final prospectus included within the registration
statement in Form S-1 filed with the Securities and Exchange Commission for the
initial public offering of the Company's Common Stock (the "Registration
Statement").

          (o)  "Offering Date" shall mean the first Trading Day of each Offering
Period.

          (p)  "Offering Periods" shall mean the periods of approximately six
(6) months during which an option granted pursuant to the Plan may be exercised,
commencing on the first Trading Day on or after February 1 and August 1 of each
year and terminating on the first Trading Day on or after the February 1 and
August 1 Offering Period commencement date approximately six months later;
provided, however, that the first Offering Period under the Plan shall commence
with the first Trading Day on or after the date on which the Securities and
Exchange Commission declares the Company's registration statement on Form S-1
effective and ending on the first Trading Day on or after February 1, 2005. The
duration and timing of Offering Periods may be changed pursuant to Section 4 of
this Plan.

          (q)  "Plan" shall mean this 2004 Employee Stock Purchase Plan.

          (r)  "Purchase Price" shall mean 85% of the Fair Market Value of a
share of Common Stock on the Offering Date or on the Exercise Date, whichever is
lower; provided however, that the Purchase Price may be adjusted by the
Administrator pursuant to Section 20.

          (s)  "Subsidiary" shall mean a "subsidiary corporation," whether now
or hereafter existing, as defined in Section 424(f) of the Code.

          (t)  "Trading Day" shall mean a day on which national stock exchanges
and the Nasdaq System are open for trading.

     3.   Eligibility.

          (a)  First Offering Period. Any individual who is an Eligible Employee
immediately prior to the first Offering Period shall be automatically enrolled
in the first Offering Period.

          (b)  Subsequent Offering Periods. Any Eligible Employee on a given
Offering Date shall be eligible to participate in the Plan.

          (c)  Limitations. Any provisions of the Plan to the contrary
notwithstanding, no Eligible Employee shall be granted an option under the Plan
(i) to the extent that, immediately after the grant, such Eligible Employee (or
any other person whose stock would be attributed to such Eligible Employee
pursuant to Section 424(d) of the Code) would own capital stock of the Company
and/or hold outstanding options to purchase such stock possessing five percent
(5%) or more of the total combined voting power or value of all classes of the
capital stock of the Company or of any

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Subsidiary, or (ii) to the extent that his or her rights to purchase stock under
all employee stock purchase plans of the Company and its subsidiaries accrues at
a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock
(determined at the fair market value of the shares at the time such option is
granted) for each calendar year in which such option is outstanding at any time.

     4.   Offering Periods. The Plan shall be implemented by consecutive (and if
determined by the Administrator, overlapping) Offering Periods with a new
Offering Period commencing on the first Trading Day on or after February 1 and
August 1 each year, or on such other date as the Board shall determine, and
continuing thereafter until terminated in accordance with Section 20 hereof;
provided, however, that the first Offering Period under the Plan shall commence
with the first Trading Day on or after the date upon which the Company's
registration statement on Form S-1 is declared effective by the Securities and
Exchange Commission and end on the first Trading Day on or after February 1,
2005. The Administrator shall have the power to change the duration of Offering
Periods (including the commencement dates thereof) with respect to future
offerings without stockholder approval if such change is announced prior to the
scheduled beginning of the first Offering Period to be affected thereafter.

     5.   Participation.

          (a)  First Offering Period. An Eligible Employee shall be entitled to
participate in the first Offering Period only if such individual submits a
subscription agreement authorizing payroll deductions in the form of Exhibit A
to this Plan (i) no earlier than the effective date of the Form S-8 registration
statement with respect to the issuance of Common Stock under this Plan and (ii)
no later than ten (10) business days from the effective date of such S-8
registration statement (the "Enrollment Window"). An Eligible Employee's failure
to submit the subscription agreement during the Enrollment Window shall result
in the automatic termination of such individual's participation in the Offering
Period.

          (b)  Subsequent Offering Periods. An Eligible Employee may become a
participant in the Plan by completing a subscription agreement authorizing
payroll deductions in the form of Exhibit A to this Plan and filing it with the
Company's payroll office prior to the applicable Offering Date.

     6.   Payroll Deductions.

          (a)  At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in an amount not exceeding 10% of the Compensation
which he or she receives on each pay day during the Offering Period; provided,
however, that should a pay day occur on an Exercise Date, a participant shall
have the payroll deductions made on such day applied to his or her account under
the new Offering Period. A participant's subscription agreement shall remain in
effect for successive Offering Periods unless terminated as provided in Section
10 hereof.

          (b)  Payroll deductions for a participant shall commence on the first
payday following the Offering Date and shall end on the last payday in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10

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hereof; provided, however, that for the first Offering Period, payroll
deductions shall commence on the first payday on or following the end of the
Enrollment Window.

          (c)  All payroll deductions made for a participant shall be credited
to his or her account under the Plan and shall be withheld in whole percentages
only. A participant may not make any additional payments into such account.

          (d)  A participant may discontinue his or her participation in the
Plan as provided in Section 10 hereof, or may increase or decrease the rate of
his or her payroll deductions during the Offering Period by completing or filing
with the Company a new subscription agreement authorizing a change in payroll
deduction rate. The Administrator may, in its discretion, limit the nature
and/or number of participation rate changes during any Offering Period. The
change in rate shall be effective with the first full payroll period following
five (5) business days after the Company's receipt of the new subscription
agreement unless the Company elects to process a given change in participation
more quickly.

          (e)  Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant's
payroll deductions may be decreased to zero percent (0%) at any time during an
Offering Period. Payroll deductions shall recommence at the rate provided in
such participant's subscription agreement at the beginning of the first Offering
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10 hereof.

          (f)  At the time the option is exercised, in whole or in part, or at
the time some or all of the Company's Common Stock issued under the Plan is
disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock. At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Eligible Employee.

     7.   Grant of Option. On the Offering Date of each Offering Period, each
Eligible Employee participating in such Offering Period shall be granted an
option to purchase on each Exercise Date during such Offering Period (at the
applicable Purchase Price) up to a number of shares of the Company's Common
Stock determined by dividing such Eligible Employee's payroll deductions
accumulated prior to such Exercise Date and retained in the Participant's
account as of the Exercise Date by the applicable Purchase Price; provided that
in no event shall an Eligible Employee be permitted to purchase during each
Offering Period more than 10,000 shares of the Company's Common Stock (subject
to any adjustment pursuant to Section 19), and provided further that such
purchase shall be subject to the limitations set forth in Sections 3(b) and 12
hereof. The Eligible Employee may accept the grant of such option by turning in
a completed Subscription Agreement (attached hereto as Exhibit A) to the Company
on or prior to an Offering Date, or with respect to the first Offering Period,
prior to the last day of the Enrollment Window. The Administrator may, for
future Offering Periods, increase or decrease, in its absolute discretion, the
maximum number of shares of the Company's Common Stock an Eligible Employee may
purchase during each Offering Period. Exercise of the option shall occur as
provided in Section 8 hereof,

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unless the participant has withdrawn pursuant to Section 10 hereof. The option
shall expire on the last day of the Offering Period.

     8.   Exercise of Option.

          (a)  Unless a participant withdraws from the Plan as provided in
Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares shall be purchased; any payroll deductions
accumulated in a participant's account which are not sufficient to purchase a
full share shall be retained in the participant's account for the subsequent
Offering Period, subject to earlier withdrawal by the participant as provided in
Section 10 hereof. Any other funds left over in a participant's account after
the Exercise Date shall be returned to the participant. During a participant's
lifetime, a participant's option to purchase shares hereunder is exercisable
only by him or her.

          (b)  If the Administrator determines that, on a given Exercise Date,
the number of shares with respect to which options are to be exercised may
exceed (i) the number of shares of Common Stock that were available for sale
under the Plan on the Offering Date of the applicable Offering Period, or (ii)
the number of shares available for sale under the Plan on such Exercise Date,
the Administrator may in its sole discretion (x) provide that the Company shall
make a pro rata allocation of the shares of Common Stock available for purchase
on such Offering Date or Exercise Date, as applicable, in as uniform a manner as
shall be practicable and as it shall determine in its sole discretion to be
equitable among all participants exercising options to purchase Common Stock on
such Exercise Date, and continue all Offering Periods then in effect, or (y)
provide that the Company shall make a pro rata allocation of the shares
available for purchase on such Offering Date or Exercise Date, as applicable, in
as uniform a manner as shall be practicable and as it shall determine in its
sole discretion to be equitable among all participants exercising options to
purchase Common Stock on such Exercise Date, and terminate any or all Offering
Periods then in effect pursuant to Section 20 hereof. The Company may make pro
rata allocation of the shares available on the Offering Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company's
stockholders subsequent to such Offering Date.

     9.   Delivery. As soon as reasonably practicable after each Exercise Date
on which a purchase of shares occurs, the Company shall arrange the delivery to
each participant the shares purchased upon exercise of his or her option in a
form determined by the Administrator.

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     10.  Withdrawal.

          (a)  A participant may withdraw all but not less than all the payroll
deductions credited to his or her account and not yet used to exercise his or
her option under the Plan at any time by giving written notice to the Company in
the form of Exhibit B to this Plan. All of the participant's payroll deductions
credited to his or her account shall be paid to such participant promptly after
receipt of notice of withdrawal and such participant's option for the Offering
Period shall be automatically terminated, and no further payroll deductions for
the purchase of shares shall be made for such Offering Period. If a participant
withdraws from an Offering Period, payroll deductions shall not resume at the
beginning of the succeeding Offering Period unless the participant delivers to
the Company a new subscription agreement.

          (b)  A participant's withdrawal from an Offering Period shall not have
any effect upon his or her eligibility to participate in any similar plan which
may hereafter be adopted by the Company or in succeeding Offering Periods which
commence after the termination of the Offering Period from which the participant
withdraws.

     11.  Termination of Employment. In the event a participant ceases to be an
Eligible Employee of the Company or any Designated Subsidiary, as applicable,
his or her option shall remain exercisable for a period of three (3) months from
the date of such Eligible Employee's termination. Upon the expiration of such
three (3) month period or a date prior to the expiration of such three (3) month
period if requested by the participant, any payroll deductions credited to such
participant's account during the Offering Period but not yet used to purchase
shares under the Plan shall be returned to such participant or, in the case of
his or her death, to the person or persons entitled thereto under Section 15
hereof, and such participant's option shall be automatically terminated.

     12.  Interest. No interest shall accrue on the payroll deductions of a
participant in the Plan.

     13.  Stock.

          (a)  Subject to adjustment upon changes in capitalization of the
Company as provided in Section 19 hereof, the maximum number of shares of the
Company's Common Stock which shall be made available for sale under the Plan
shall be 500,000 shares plus an annual increase to be added on the first day of
the Company's fiscal year beginning in 2005 and ending in 2014, equal to the
lesser of (i) 1,000,000 shares, (ii) 2% of the outstanding shares on such date
or (iii) an amount determined by the Administrator.

          (b)  Until the shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company), a participant shall only have the rights of an unsecured creditor with
respect to such shares, and no right to vote or receive dividends or any other
rights as a stockholder shall exist with respect to such shares.

          (c)  Shares to be delivered to a participant under the Plan shall be
registered in the name of the participant or in the name of the participant and
his or her spouse.

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     14.  Administration. The Administrator shall administer the Plan and shall
have full and exclusive discretionary authority to construe, interpret and apply
the terms of the Plan, to adopt such procedures and sub-plans as are necessary
or appropriate to permit participation in the Plan by employees who are foreign
nationals or employed outside of the United States, and to determine eligibility
and to adjudicate all disputed claims filed under the Plan. Every finding,
decision and determination made by the Administrator shall, to the full extent
permitted by law, be final and binding upon all parties.

     15.  Designation of Beneficiary.

          (a)  A participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the participant's account under
the Plan in the event of such participant's death subsequent to an Exercise Date
on which the option is exercised but prior to delivery to such participant of
such shares and cash. In addition, a participant may file a written designation
of a beneficiary who is to receive any cash from the participant's account under
the Plan in the event of such participant's death prior to exercise of the
option. If a participant is married and the designated beneficiary is not the
spouse, spousal consent shall be required for such designation to be effective.

          (b)  Such designation of beneficiary may be changed by the participant
at any time by written notice. In the event of the death of a participant and in
the absence of a beneficiary validly designated under the Plan who is living at
the time of such participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion, may deliver such shares and/or
cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

          (c)  All beneficiary designations shall be in such form and manner as
the Administrator may designate from time to time.

     16.  Transferability. Neither payroll deductions credited to a
participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

     17.  Use of Funds. All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions. Until
shares are issued, participants shall only have the rights of an unsecured
creditor.

     18.  Reports. Individual accounts shall be maintained for each participant
in the Plan. Statements of account shall be given to participating Eligible
Employees at least annually, which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.

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     19.  Adjustments Upon Changes in Capitalization, Dissolution, Liquidation,
Merger or Change in Control.

          (a)  Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the maximum number of shares of the Company's
Common Stock which shall be made available for sale under the Plan, the maximum
number of shares each participant may purchase each Offering Period (pursuant to
Section 7), the number of shares that may be added annually to the shares
reserved under the Plan (pursuant to Section 13(a)(i)), as well as the price per
share and the number of shares of Common Stock covered by each option under the
Plan which has not yet been exercised shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other change in the number of
shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of consideration."
Such adjustment shall be made by the Administrator, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an option.

          (b)  Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "New Exercise Date"), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Administrator. The
New Exercise Date shall be before the date of the Company's proposed dissolution
or liquidation. The Administrator shall notify each participant in writing, at
least ten (10) business days prior to the New Exercise Date, that the Exercise
Date for the participant's option has been changed to the New Exercise Date and
that the participant's option shall be exercised automatically on the New
Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof.

          (c)  Merger or Change in Control. In the event of a merger or Change
in Control, each outstanding option shall be assumed or an equivalent option
substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to
assume or substitute for the option, the Offering Period then in progress shall
be shortened by setting a New Exercise Date and such Offering Period shall end
on the New Exercise Date. The New Exercise Date shall be before the date of the
Company's proposed merger or Change in Control. The Administrator shall notify
each participant in writing, at least ten (10) business days prior to the New
Exercise Date, that the Exercise Date for the participant's option has been
changed to the New Exercise Date and that the participant's option shall be
exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10
hereof.

     20.  Amendment or Termination.

          (a)  The Administrator may at any time and for any reason terminate or
amend the Plan. Except as otherwise provided in the Plan, no such termination
can affect options previously

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granted, provided that an Offering Period may be terminated by the Administrator
on any Exercise Date if the Administrator determines that the termination of the
Offering Period or the Plan is in the best interests of the Company and its
stockholders. Except as provided in Section 19 and this Section 20 hereof, no
amendment may make any change in any option theretofore granted which adversely
affects the rights of any participant. To the extent necessary to comply with
Section 423 of the Code (or any successor rule or provision or any other
applicable law, regulation or stock exchange rule), the Company shall obtain
stockholder approval in such a manner and to such a degree as required.

          (b)  Without stockholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Administrator shall be entitled to change the Offering Periods, limit the
frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Administrator determines in its sole discretion advisable which are
consistent with the Plan.

          (c)  In the event the Administrator determines that the ongoing
operation of the Plan may result in unfavorable financial accounting
consequences, the Board may, in its discretion and, to the extent necessary or
desirable, modify or amend the Plan to reduce or eliminate such accounting
consequence including, but not limited to:

               (i)  increasing the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

               (ii) shortening any Offering Period so that Offering Period ends
on a new Exercise Date, including an Offering Period underway at the time of the
Board action; and

               (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the
consent of any Plan participants.

     21.  Notices. All notices or other communications by a participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form and manner specified by the Company at the
location, or by the person, designated by the Company for the receipt thereof.

     22.  Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may

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then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

          As a condition to the exercise of an option, the Company may require
the person exercising such option to represent and warrant at the time of any
such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

     23.  Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
stockholders of the Company. It shall continue in effect until terminated under
Section 20 hereof.

     24.  Automatic Transfer to Low Price Offering Period. If the Administrator
has specified overlapping Offering Periods, then to the extent permitted by any
applicable laws, regulations, or stock exchange rules if the Fair Market Value
of the Common Stock on any Exercise Date in an Offering Period is lower than the
Fair Market Value of the Common Stock on the Offering Date of such Offering
Period, then all participants in such Offering Period shall be automatically
withdrawn from such Offering Period immediately after the exercise of their
option on such Exercise Date and automatically re-enrolled in the immediately
following Offering Period.

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                                    EXHIBIT A

                                TALEO CORPORATION

                        2004 EMPLOYEE STOCK PURCHASE PLAN

                             SUBSCRIPTION AGREEMENT

_____ Original Application                             Offering Date:___________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

1.   ____________________ hereby elects to participate in the Taleo Corporation
     2004 Employee Stock Purchase Plan (the "Employee Stock Purchase Plan") and
     subscribes to purchase shares of the Company's Common Stock in accordance
     with this Subscription Agreement and the Employee Stock Purchase Plan.

2.   I hereby authorize payroll deductions from each paycheck in the amount of
     ____% of my Compensation on each payday (from 0 to 10%) during the Offering
     Period in accordance with the Employee Stock Purchase Plan. (Please note
     that no fractional percentages are permitted.)

3.   I understand that said payroll deductions shall be accumulated for the
     purchase of shares of Common Stock at the applicable Purchase Price
     determined in accordance with the Employee Stock Purchase Plan. I
     understand that if I do not withdraw from an Offering Period, any
     accumulated payroll deductions will be used to automatically exercise my
     option.

4.   I have received a copy of the complete Employee Stock Purchase Plan. I
     understand that my participation in the Employee Stock Purchase Plan is in
     all respects subject to the terms of the Plan. I understand that my ability
     to exercise the option under this Subscription Agreement is subject to
     stockholder approval of the Employee Stock Purchase Plan.

5.   Shares purchased for me under the Employee Stock Purchase Plan should be
     issued in the name(s) of (Eligible Employee or Eligible Employee and Spouse
     only).

6.   I understand that if I dispose of any shares received by me pursuant to the
     Plan within 2 years after the Offering Date (the first day of the Offering
     Period during which I purchased such shares) or one year after the Exercise
     Date, I will be treated for federal income tax purposes as having received
     ordinary income at the time of such disposition in an amount equal to the
     excess of the fair market value of the shares at the time such shares were
     purchased by me over the price which I paid for the shares. I hereby agree
     to notify the Company in writing within 30 days after the date of any
     disposition of my shares and I will make adequate provision for Federal,
     state or other tax withholding obligations, if any, which arise upon the

<PAGE>

     disposition of the Common Stock. The Company may, but will not be obligated
     to, withhold from my compensation the amount necessary to meet any
     applicable withholding obligation including any withholding necessary to
     make available to the Company any tax deductions or benefits attributable
     to sale or early disposition of Common Stock by me. If I dispose of such
     shares at any time after the expiration of the 2-year and 1-year holding
     periods, I understand that I will be treated for federal income tax
     purposes as having received income only at the time of such disposition,
     and that such income will be taxed as ordinary income only to the extent of
     an amount equal to the lesser of (1) the excess of the fair market value of
     the shares at the time of such disposition over the purchase price which I
     paid for the shares, or (2) 15% of the fair market value of the shares on
     the first day of the Offering Period. The remainder of the gain, if any,
     recognized on such disposition will be taxed as capital gain.

7.   I hereby agree to be bound by the terms of the Employee Stock Purchase
     Plan. The effectiveness of this Subscription Agreement is dependent upon my
     eligibility to participate in the Employee Stock Purchase Plan.

8.   In the event of my death, I hereby designate the following as my
     beneficiary(ies) to receive all payments and shares due me under the
     Employee Stock Purchase Plan:

     NAME: (Please print)_______________________________________________________
                             (First)        (Middle)         (Last)

     _________________________                   ___________________________
     Relationship

     _________________________                   ___________________________
     Percentage Benefit                          (Address)

     NAME: (please print)_______________________________________________________
                             (First)        (Middle)         (Last)

     _________________________                   ___________________________
     Relationship

     _________________________                   ___________________________
     Percentage Benefit                          (Address)

                                                                             -2-
<PAGE>

         Employee's Social
         Security Number:        ____________________________________

         Employee's Address:     ____________________________________

                                 ____________________________________

                                 ____________________________________

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated:_________________________              ___________________________________
                                             Signature of Employee

                                             ___________________________________
                                             Spouse's Signature (If beneficiary
                                             other than spouse)

                                                                             -3-
<PAGE>

                                    EXHIBIT B

                                TALEO CORPORATION

                        2004 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

          The undersigned participant in the Offering Period of the Taleo
Corporation 2004 Employee Stock Purchase Plan that began on ____________, ______
(the "Offering Date") hereby notifies the Company that he or she hereby
withdraws from the Offering Period. He or she hereby directs the Company to pay
to the undersigned as promptly as practicable all the payroll deductions
credited to his or her account with respect to such Offering Period. The
undersigned understands and agrees that his or her option for such Offering
Period will be automatically terminated. The undersigned understands further
that no further payroll deductions will be made for the purchase of shares in
the current Offering Period and the undersigned shall be eligible to participate
in succeeding Offering Periods only by delivering to the Company a new
Subscription Agreement.

                                                Name and Address of Participant:

                                                ________________________________

                                                ________________________________

                                                ________________________________

                                                Signature:

                                                ________________________________

                                                Date:___________________________<PAGE>

                                                                   EXHIBIT 10.12

                          e-BUSINESS HOSTING AGREEMENT

This e-business Hosting Agreement ("Agreement") between International Business
Machines Corporation ("IBM") and RECRUITSOFT, INC. ("Customer"), sets forth the
terms and conditions under which IBM will provide web hosting and related
services ("Services") to Customer. The Agreement includes the terms and
conditions and the documents referenced herein ("Base Terms"), e-business
hosting services order forms accepted by IBM ("Order Forms"), and applicable
attachments referenced in Exhibit A of such Order Forms ("Attachments")
including Attachments for Services options selected by Customer ("Service Option
Attachments"). In the event of a conflict between the Base Terms and an
Attachment or an Order Form, the Base Terms will prevail, except where an
Attachment, Order Form, or a provision contained therein expressly states that
it will prevail over the Base Terms.

1.0  DEFINITIONS

a.   "Acceptable Use Policy" means the Acceptable Use Policy for IBM e-business
     Services, located on the Internet at
     www.ibm.com/services/e-business/aup.html, as of the Effective Date, and any
     subsequent modification in accordance with Section 12.2 below.

b.   "Affiliates" means entities that control, are controlled by, or are under
     common control with a party to this Agreement.

c.   "Base Components" means the hardware and software that IBM makes available,
     if any, as specified in Order Forms and associated Service Option
     Attachments.

d.   "Content" means information, software, and data that Customer provides,
     including, without limitation, any hypertext markup language files,
     scripts, programs, recordings, sound, music, graphics, images, applets or
     servlets that Customer or its Subcontractors or Services Recipients create,
     install, upload or transfer in or through the e-business Hosting
     Environment and/or Customer Components.

e.   "Content Administrator" means an employee or Subcontractor of Customer who
     is authorized by Customer to install, upload and/or maintain Content using
     a User Identification.

f.   "Customer Components" means the hardware, software and other products, data
     and Content that Customer provides, including those specified in Service
     Option Attachments.

g.   e-business Hosting Environment' means the Base Components and the IBM
     provided Internet access bandwidth, collectively.

h.   "IBM e-business Hosting Center" means a facility used by IBM to provide
     Services.

i.   "Internet" means the public worldwide network of TCP/IP-based networks.

j.   "Materials" means literary or other works of authorship (such as programs,
     program listings, programming tools, documentation, reports, drawings and
     similar works) that IBM may deliver to Customer as part of Services.
     "Materials" does not include licensed program products available under
     their own license agreements or Base Components.

k.   "Required Consents" means any consents or approvals required to give IBM
     and its Subcontractors the right or license to access, use and/or modify in
     electronic form and in other forms, including derivative works, the
     Customer Components, without infringing the ownership or intellectual
     property rights of the providers, licensors, or owners of such Customer
     Components.

l.   "Service Option Ready Date" means the date that IBM has notified Customer
     that IBM has completed the implementation activities specified in an
     applicable Service Option Attachment.

m.   "Services Recipients" means any entities or individuals receiving or using
     the Services, or the results or products of the Services.

n.   "Service Option Attachment Start Date" means the day after the date of the
     last signature on an Order Form authorizing the Services under an
     applicable Service Option Attachment.

o.   "Subcontractor" means a contractor, vendor, agent, or consultant selected
     and retained by IBM or Customer, respectively.

p.   TCP/IP" means Transmission Control Protocol/Internet Protocol.

q.   "User Identification" or "ID" means a string of characters that uniquely
     identifies a Content Administrator.

2.0  IBM SERVICES RESPONSIBILITIES

IBM will perform the Services described in applicable Attachments.

<PAGE>

3.0  TERM AND TERMINATION

3.1  TERM

This Agreement will be effective beginning on 12:01 a.m., Eastern Time, on the
day after the date of last signature to these Base Terms ("Effective Date") and
ending on the expiration and/or termination of all Service Option Attachments,
unless the Agreement is terminated earlier in accordance with the terms herein.
The term of each Service Option Attachment is as specified on the applicable
Order Form.

3.2  RENEWAL

Each Service Option Attachment will renew for an additional one (1) year term
upon the mutual agreement of Customer and IBM. The Customer must provide IBM
written notice of its desire to renew. Such notice must be received by IBM at
least thirty (30) days prior to the expiration of the then current term for the
applicable Service Option Attachment.

3.3  TERMINATION FOR CAUSE

Customer or IBM may terminate this Agreement for material breach of this
Agreement by the other upon written notice containing the specific nature and
dates of the material breach. The breaching party will have thirty (30) days
from receipt of notice to cure such breach, except for nonpayment by Customer,
which must be cured within five (5) days from receipt of notice. If such breach
has not been timely cured, then the non-breaching party may immediately
terminate this Agreement upon written notice. In the event that Customer
disputes, in good faith, any amount in an invoice, Customer shall notify IBM in
writing of the amount of and basis for such dispute in writing within fifteen
(15) business days of receipt of invoice. Customer shall pay all undisputed
amounts in accordance with the payment terms in this Agreement and may withhold
payment of the disputed amount for a reasonable time during which the parties
shall resolve such dispute.

3.4  TERMINATION FOR CONVENIENCE

Customer may terminate this Agreement (including all Service Option Attachments)
or any Service Option Attachment (with the exception of any Service Option
Attachment that is a prerequisite for the provision of Services under a
non-terminated Service Option Attachment) for convenience by:

a.   providing at least one month's prior written notice to IBM; and

b.   paying as an early termination charge for each Service Option Attachment to
     be terminated, the amount specified in such Service Option Attachment or,
     if no amount is specified, an amount equal to one months' charges of the
     applicable monthly recurring charge of such Service Option Attachment. Such
     termination charges only apply upon early termination of an initial term of
     any Service Option Attachment and do not apply to any renewal term.

3.5  EFFECT OF TERMINATION

Upon the date of termination for either cause or convenience, all Customer
payment obligations accrued hereunder through the date of termination will
become due and payable. The termination of selected Service Option Attachments
will not affect Customer's obligation to pay charges under other Service Option
Attachments.

4.0  CHARGES AND PAYMENT

4.1  CHARGES

Charges for applicable Services will be specified in Service Option Attachments
and Order Forms. Charges can be specified as one-time, installment, recurring,
or usage. IBM will invoice such Charges when they begin or are due as set forth
in Service Option Attachments.

4.2  PAYMENT

IBM invoices will specify the amount due. Notwithstanding the terms on an
invoice, payment is due and payable thirty (30) days after your receipt of an
invoice from IBM. Customer agrees to pay accordingly, including any late payment
fees. Payment will be made in United States dollars.

4.3  TAXES

Customer will pay or provide appropriate exemption documentation for all taxes,
duties, levies, and any other fees (except for taxes based upon IBM's net
income) related to the Services imposed by any governmental authorities. Charges
specified herein (including in an Order Form) are exclusive of any such taxes,
duties, levies or fees.

<PAGE>

5.0  WARRANTIES AND DISCLAIMERS

5.1  IBM REPRESENTATIONS AND WARRANTIES IBM REPRESENTS AND WARRANTS THAT:

a.   it will perform the Services using commercially reasonable care and skill
     and in accordance with the applicable Service Option Attachments; and

b.   it has the requisite corporate power and authority to execute, deliver and
     perform its obligations under this Agreement.

5.2  EXCLUSIVITY OF WARRANTIES

THE WARRANTIES IN SECTION 5.1 ARE THE EXCLUSIVE WARRANTIES FROM IBM. THEY
REPLACE ALL OTHER WARRANTIES, INCLUDING, WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE.

5.3  SECURITY

a.   Customer acknowledges that IBM offers numerous security options, specified
     in Service Option Attachments. It is the Customer's responsibility to
     select, on an Order Form, the set of security options that it determines
     meet Customer's needs. IBM will implement such selected security options as
     specified in the applicable Service Option Attachment.

b.   Customer acknowledges that IBM does not control the transfer of data over
     telecommunications facilities, including the Internet. IBM does not warrant
     secure operation of the Services or that it will be able to prevent third
     party disruptions of the e-business Hosting Environment or Customer
     Components.

c.   Customer agrees that IBM shall have no liability for any provision of
     security-related services or advice that IBM may voluntarily provide
     outside the scope of selected Service Option Attachments.

5.4  OTHER DISCLAIMERS

a.   IBM does not warrant uninterrupted or error-free operation of any Service
     or that IBM will correct all defects.

b.   IBM does not make any representation or warranty with respect to Customer's
     responsibilities set forth in Section 10.5.

c.   IBM provides Materials, non-IBM products, and non-IBM services WITHOUT
     WARRANTIES OF ANY KIND. However, non-IBM manufacturers, suppliers, or
     publishers may provide their own warranties to you.

6.0  CONFIDENTIALITY

Most information exchanged between the parties is non-confidential. Exchange of
confidential information by the parties will be governed by the terms and
conditions of a separate written Agreement for Exchange of Confidential Exchange
("AECI") executed between the parties in June 2003. With respect to any
confidential information contained in or traveling through the e-business
Hosting Environment or Customer Components, as is contemplated herein, the
provisions of Sections 5, 8, and 9 herein will prevail to the extent of any
inconsistent provisions in the confidentiality agreement.

7.0  INDEMNIFICATION

7.1  INDEMNIFICATION BY IBM

If a third party claims that Materials or Base Components IBM provides to
Customer infringe that party's patent, copyright, trademark, trade secret,
service mark, or mask work right, IBM will defend the Customer and its
employees, officers, and directors against that claim at IBM's expense and pay
all costs, damages, and reasonable attorneys' fees that a court finally awards
(or which IBM agrees in any final settlement), provided that Customer:

a.   promptly notifies IBM in writing of the claim; and

b.   allows IBM to control, and cooperates with IBM in, the defense and any
     related settlement negotiations. If such a claim is made or appears likely
     to be made, Customer agrees to permit IBM to enable Customer to continue to
     use the Materials or Base Components, or to modify them, or replace them
     with non-infringing Materials or Base Components that are at least
     functionally equivalent. If IBM determines that none of these alternatives
     is reasonably available, Customer agrees to return the Materials or Base
     Components (if in Customer's possession) to IBM on IBM's written request.
     IBM will give Customer a credit equal to the amount Customer paid IBM for
     the applicable Materials or for use of the applicable Base Components up to
     a maximum of twelve (12) months of applicable charges. This is IBM's entire
     obligation to Customer with regard to any claim of infringement.
     Notwithstanding the foregoing, IBM is not responsible for third party
     claims to the extent that the infringement is the result of:

<PAGE>

     1.   anything Customer provides which is incorporated into the Materials;

     2.   Customer's modification of the Materials;

     3.   the combination, operation, or use of the Materials with any product,
          data, or apparatus that IBM did not provide; or

     4.   non-IBM hardware, software, or data, including those that may be in
          the Base Components.

7.2  INDEMNIFICATION BY CUSTOMER

a.   Customer will defend IBM and its Affiliates and their employees, officers,
     and directors, at Customer's expense, and pay all costs, damages, and
     reasonable attorneys' fees that a court finally awards (or which Customer
     agrees in any final settlement) for any third party claim:

     1.   that Content or Customer's use of the Services violates Customer's
          obligation in Sections 10.2 (b) and 10.4 (b);

     2.   that Customer Components infringe that party's patent, copyright,
          trademark, trade secret, service mark, or mask work right; or

     3.   that is brought by a Services Recipient and is related, directly or
          indirectly, to the Services (excluding claims to the extent they are
          the responsibility of IBM under Section 7.1, above); or

     4.   arising out of or related to a mechanics' lien Customer is required to
          cancel and discharge pursuant to this Agreement.

b.   For indemnification under this Section 7.2, IBM will:

     1.   promptly notify Customer in writing of the claim; and

     2.   allow Customer to control, and will cooperate with Customer in, the
          defense and any related settlement negotiations.

8.0  LIMITATION OF IBM'S LIABILITY

Circumstances may arise where, because of a default on IBM's part or other
liability, Customer is entitled to recover damages from IBM. Regardless of the
basis on which Customer is entitled to claim damages from IBM (including
fundamental breach, negligence, misrepresentation, or other contract or tort
claim), IBM is liable for no more than:

a.   indemnification payments as provided in Section 7.1;

b.   damages for bodily injury (including death) and damage to real property and
     tangible personal property;

c.   any damages associated with IBM's infringement or violation of the patent,
     copyright, trademark, trade secret, service mark, or mask work right rights
     of Customer; and

d.   the amount of any other actual direct damages, up to the greater of
     $100,000 or the charges paid by Customer to IBM for the Services in the
     twelve (12) months immediately preceding the accrual of the first claim
     related to the Services. The foregoing limit also applies to any of IBM's
     Affiliates and Subcontractors. It is the cumulative maximum for which IBM
     and its Affiliates and Subcontractors are collectively responsible. Under
     no circumstances is IBM, its Affiliates or its Subcontractors liable for
     any of the following:

     1.   third party claims against Customer for damages (other than those
          expressly provided in Subsections 8.0(a) and 8.0(b)); or

     2.   loss of, or damage to, Customer's or any other entity's records or
          data.
8.0 (B) CUSTOMER'S LIABILITY

Circumstances may arise where, because of a default on Customer's part or other
liability, IBM is entitled to recover damages from Customer. Regardless of the
basis on which IBM is entitled to claim damages from Customer (including
fundamental breach, negligence, misrepresentation, or other contract or tort
claim), Customer is liable for no more than:

a.   any amounts owing to IBM under this Agreement (including amounts owing for
     Services rendered or services that would have been rendered under this
     Agreement but for Customer's breach of this Agreement);

b.   indemnification obligations of Customer as provided in Section 7.2;

c.   damages for bodily injury (including death) and damage to real property and
     tangible personal property;

d.   any damages associated with Customer's infringement or violation of the
     patent, or copyright, trademark, trade secret, service mark, or mask work
     rights of IBM or its Affiliates; and

e.   the amount of any other actual direct damages up to the greater of
     US$100,000 or the charges paid by Customer to IBM for the Services in the
     twelve (12) months immediately preceding the accrual of the first claim
     related to the Services.

<PAGE>

The foregoing limit also applies to any of Customer's Affiliates. This Section
8.0(B) is the cumulative maximum for which Customer and its Affiliates are
collectively responsible. Under no circumstances is Customer or its Affiliates
liable for any of the following:

     (i)  third party claims against IBM for damages (other than those expressly
          provided in clauses (b) and (c) of this subparagraph (B); or

     (ii) loss of, or damage to, IBM's records or data.

9.0 DISCLAIMER OF CONSEQUENTIAL DAMAGES

Except for damages for which the Customer is liable as set forth in Section
8.0(B)(d), in no event will either party be liable to the other for special,
incidental, or indirect damages or for any consequential damages (including lost
profits or savings), even if they are informed of the possibility; provided that
this Section 9 does not apply to Customer's failure to pay any amounts owing to
IBM under this Agreement (including amounts owing for Services that would have
been rendered but for Customer's breach of this Agreement).

10.0 OTHER CUSTOMER OBLIGATIONS

10.1 SERVICES SUPPORT

Customer will comply with its responsibilities to support the Services as
specified in applicable Attachments. Such obligations are to be performed at no
charge to IBM.

10.2 REPRESENTATIONS AND WARRANTIES

Customer represents and warrants that:

a.   it has the requisite corporate power and authority to execute, deliver and
     perform its obligations under this Agreement; Customer has no contractual
     or other obligation that (i) restricts or prohibits Customer's execution or
     performance of this Agreement, or (ii) Customer will breach in connection
     with the execution or performance of this Agreement; and

b.   its use of the Services and all Content will comply with the Acceptable Use
     Policy.

10.3 SUSPECTED VIOLATIONS

IBM reserves the right to investigate potential violations of the
representations and warranties in Subsection 10.2(b). If IBM reasonably
determines that a breach of any such warranty has occurred, then IBM may, in its
sole discretion:

a.   restrict Customer's access to the Services;

b.   remove or require removal of any offending Content;

c.   terminate this Agreement for cause; and/or

d.   exercise other rights and remedies, at law or in equity.

Before undertaking the activities in Subsection 10.3(a), 10.3 (b) or 10.3(c),
IBM will provide Customer with ten (10) days advance written notice to cure such
material breach, containing a reasonably detailed description of the specific
nature of the breach, unless IBM is required by law to act sooner and/or without
notice. Nonetheless, if IBM reasonably determines that an emergency exists, IBM
will provide Customer with twenty-four (24) hours notice to cure such material
breach and both parties shall work together in good faith to cure such material
breach. After receipt of such notice to cure such material breach, if such
breach is not cured during the ten (10) day cure period or, if an emergency, the
twenty-four (24) period, then IBM may, in its sole discretion immediately take
any or all of the actions in Subsection 10.3(a), 10.3(b) or 10.3(c). IBM will
attempt to notify Customer by any reasonable practical means under the
circumstances, such as, without limitation, by telephone or e-mail.

Customer will promptly notify IBM of any event or circumstance related to this
Agreement, Customer's use of the Services, or Content of which Customer becomes
aware that could lead to a claim or demand against IBM and Customer will provide
all relevant information relating to such event or circumstance to IBM at IBM's
request.

10.4 CUSTOMER COMPONENTS

a.   Customer (or its Affiliates or third parties) retains all right, title, and
     interest or license in and to the Customer Components.

b.   Customer hereby grants to IBM, its Affiliates and Subcontractors all rights
     and licenses to, or agrees to promptly obtain and keep in effect Required
     Consents for all Customer Components, necessary for IBM to perform all of
     its obligations as set forth in this Agreement. Upon request, Customer will
     provide to IBM evidence of any such rights, licenses, or Required Consents.
     IBM will be relieved of its obligations to the extent that they are
     affected by Customer's failure to promptly obtain and provide to IBM any
     such rights, licenses, or Required Consents. IBM will adhere to reasonable
     terms and conditions pertaining to Customer Components as notified in
     writing to IBM.

<PAGE>

c.   IBM agrees not to remove or alter any copyright or other proprietary notice
     on or in any Customer Component without Customer's consent.

10.5 CAPACITY PLANNING

Customer acknowledges it is its responsibility to determine whether the
Services, e-business Hosting Environment, Customer Components and their
combination will meet Customer's capacity, performance, or scalability needs.
Customer is responsible for planning for and requesting changes to the
e-business Hosting Environment, including any additional capacity required to
support anticipated peaks in demand that may significantly increase Web site
hits, transaction volumes, or otherwise increase system resource utilization.

10.6 CONTENT

Customer is solely responsible for:

a.   all Content including, without limitation, its selection, creation, design,
     licensing, installation, accuracy, maintenance, testing, backup and
     support;

b.   all copyright, patent and trademark clearances in all applicable
     jurisdictions and usage agreements for any and all Content;

c.   the selection of controls on the access and use of Content; and

d.   the selection, management and use of any public and private keys and
     digital certificates it may use with the Services.

11.0 OTHER LICENSE AND RIGHTS

11.1 LICENSE FOR BASE COMPONENTS

a.   IBM (or its Affiliates or subcontractors) retains all right, title, and
     interest in Base Components.

b.   IBM grants Customer a nonexclusive, nontransferable, revocable license to
     access and use the Base Components solely in connection with the Services
     as provided under this Agreement. Customer agrees not to download or
     otherwise copy, reverse assemble, reverse compile, decompile, or otherwise
     translate the software portions of the Base Components, other than to make
     one copy for backup purposes.

c.   If IBM provides as a Base Component a Microsoft Corporation product, the
     terms and conditions of the Microsoft Customer License Terms will also
     apply for such products. Such Terms are located on the Internet at
     http://www-3.ibm.com/services/e-business/hosting/microsoftlicense.html.

d.   Customer agrees not to remove or alter any copyright or other proprietary
     notice on or in any Base Component without IBM's consent.

11.2 NO SALE OR LEASE OF GOODS

As between Customer and IBM, IBM retains all right, title and interest in the
Base Components. No goods are sold or leased by IBM under this Agreement. If
Customer desires to purchase or lease goods from IBM, such purchase or lease
will be governed by a separate mutually acceptable written agreement between
Customer and IBM or an IBM Affiliate.

11.3 NO LEASE OF REAL PROPERTY

This Agreement is a services agreement and not a lease of any real property.

12.0 CHANGES

12.1 SERVICES

IBM, in its reasonable discretion, may change the prices, terms and conditions
of applicable Attachments, upon at least ninety (90) days prior notice to
Customer. Such changes are not retroactive and will apply on the effective date
of a new order or renewal unless such change was the result of:

a.   law, regulation, or similar governmental action;

b.   a ruling by a court of competent jurisdiction; or

c.   changes in the method of service delivery that affect similar IBM
     e-business hosting customers.

Changes as a result of a, b, or c above will be effective on the date IBM
specified in the notice. Any changes in price as a result of a, b or c above
will apply on the effective date of a new order or renewal.

12.2 ACCEPTABLE USE POLICY

IBM, in its reasonable discretion, may modify the Acceptable Use Policy upon
thirty (30) days' notice to Customer. Except when such modification is required
by law, regulation, or similar governmental action, or a ruling by a court of

<PAGE>

competent jurisdiction, Customer may terminate this Agreement (or the affected
Service Option Attachments) without the payment of termination charges if such
modification has an adverse effect on the Customer's use of the Services and
Customer gives IBM notice within ninety (90) days of the effective date of the
modification.

12.3 AMENDMENTS

Except for changes pursuant to Sections 12.1 and 12.2, this Agreement may be
amended only by a writing signed by authorized representatives of both parties.

13.0 GENERAL

13.1 HEADINGS

The headings of the various sections of this Agreement have been inserted for
convenience only and shall not affect the interpretation of this Agreement.

13.2 SURVIVAL

Any of these terms and conditions which by their nature extend beyond the
Agreement termination or expiration remain in effect until fulfilled, including,
without limitation, Sections 3.5, 4, 5, 6, 7, 8, 9, 10.2, 10.3, 10.6, 11.2,
11.3, and 13, and apply to both Customer's and IBM's respective successors and
assignees.

13.3 CHOICE OF LAW

This Agreement will be governed by the substantive laws of the State of New
York, without regard for its conflict of laws provisions.

13.4 WAIVER OF JURY TRIAL

The parties waive any right to a jury trial in any proceeding arising out of or
related to this Agreement.

13.5 SEVERABILITY

If any provision of this Agreement shall be held by a court of competent
jurisdiction to be invalid, illegal, or unenforceable, the validity, legality,
and enforceability of the remaining provisions of this Agreement shall in no way
be affected or impaired thereby, so long as the remaining provisions of this
Agreement still express the original intent of the parties. If the original
intent of the parties can not be preserved, this Agreement shall either be
renegotiated or terminated.

13.6 PUBLICITY AND TRADEMARKS

Neither party grants the other the right to use its or any of its Affiliates'
trademarks, trade names, or other designations in any promotion, publication, or
Web site without prior written consent. Except as may be required by law or as
may be required by IBM to perform the Services, neither party may disclose to
any third party the terms and conditions of this Agreement, without prior
written consent.

13.7 NO THIRD-PARTY BENEFICIARIES

Except as expressly provided in Section 7, this Agreement does not create any
intended third party beneficiary rights.

13.8 PERSONNEL

Each party is responsible for the supervision, direction, and control of its
respective personnel. IBM reserves the right to determine the assignment of its
personnel. IBM may subcontract portions of the Services to Subcontractors and
Affiliates selected by IBM.

13.9 NO AGENCY

This Agreement does not create an agency, joint venture, or partnership between
the parties.

13.10 ASSIGNMENT

Neither party may assign this Agreement, in whole or in part, without the prior
written consent of the other. Any attempt to do so is void. Neither party will
unreasonably withhold such consent. The assignment of this Agreement, in whole
or in part, to any Affiliates in the United States or to a successor
organization by merger or acquisition does not require the consent of the other.
IBM is also permitted to assign its rights to payments under this Agreement
without obtaining Customer's consent. It is not considered an assignment for IBM
to divest a portion of its business in a manner that similarly affects all of
its customers.

13.11 NO RESALE

Customer shall not resell the Services, in whole or in part. This does not
prevent Customer from making its hosted Content, application and/or data base
services available to Customer's end users via the internet for a monetary fee.

<PAGE>

13.12 RISK OF LOSS

Risk of loss for all Base Components shall at all times remain with IBM. Risk of
loss for all Customer Components shall at all times remain with Customer.

13.13 FORCE MAJEURE

Except for payment obligations hereunder, neither party is responsible to
fulfill its obligations to the extent due to similar events beyond its
reasonable control, including, but not limited to: terrorism, act(s) of war,
natural disasters; government, political, or other regulatory actions or court
orders; strikes or labor disputes; acts of civil disobedience.

13.14 ACTIONS PERIOD

Neither party will bring a legal action related to this Agreement more than two
years after the cause of action accrued.

13.15 WAIVER

The failure of one party to insist upon strict adherence to any term of this
Agreement on any occasion shall not be considered a waiver, nor shall it deprive
that party of the right to insist later on adherence thereto. Any waiver must be
in writing and signed by an authorized representative of the waiving party.

13.16 FREEDOM OF ACTION

Each party is free to enter into similar agreements with others.

13.17 LIMITATION OF LICENSES

Each of us grants only the licenses or rights expressly specified herein. No
other licenses or rights (including licenses or rights under patents) are
granted, either directly, by implication, estoppel, or otherwise.

13.18 DATA PROTECTION

Customer agrees to allow IBM and its Affiliates to store and use Customer's
contact information, including names, phone numbers, and e-mail addresses,
anywhere they do business. Such information will be processed and used in
connection with our business relationship, and may be provided to contractors,
Business Partners (certain organizations who have signed agreements with IBM to
promote, market, and support certain products and services), and assignees of
IBM and Affiliates for uses consistent with their collective business
activities, including communicating with Customer (for example, for processing
orders, for promotions, and for marketing research). For personal information
processed by IBM on Customer's behalf as part of the Services, IBM will act in
accordance with Customer's instructions by following such processing and
security obligations as are contained in this Agreement. Customer also confirms
that Customer is solely responsible for ensuring that any processing and
security obligations comply with applicable data protection laws. Customer's
contact information shall not be considered personal information processed on
Customer's behalf.

13.19 GEOGRAPHIC SCOPE

Although it is possible that Services Recipients outside of the United States of
America may access Customer's Web site, IBM's delivery of the Services will only
occur within the United States of America, and IBM's obligations hereunder are
valid only in the United States of America.

13.20 NOTICES

Any notices required or permitted hereunder will be effective upon receipt and
will be personally delivered; mailed via the postal service; or sent by reliable
overnight courier. Except for notices under Section 10.3, all notices will be in
writing and addressed to the applicable party's designated representative at the
address specified in this Agreement. Except as to notices permitted or required
under Sections 3 or 7, the parties agree that electronic mail messages sent
between them using security procedures sufficient to reasonably authenticate
them will be deemed writings. In addition, IBM may provide notice under Section
12.2 by a posting to the Web site identified in Section 1.0 (a).

<PAGE>

Customer and IBM agree that this Agreement, including these Base Terms and
applicable Attachments and Order Forms, is the complete agreement between the
parties relating to the subject matter hereof. This Agreement replaces and
supersedes any other prior or contemporaneous agreements or communications
between the parties related to the subject matter hereof.

Agreed and Accepted:

RECRUITSOFT, INC.                                INTERNATIONAL BUSINESS MACHINES
                                                 CORPORATION

By: /s/ Jean Lavigueur                           By: /s/ Justin Golden
    -------------------------------------            ---------------------------
         Customer Authorized Signature                   Authorized Signature

Jean Lavigueur                  6/30/2003        Justin J. Golden        6/30/03
-----------------------------------------        -------------------------------
Name (type or print)              Date           Name (type or print)      Date

CFO                                              Sales Manager
-----------------------------------------        -------------------------------
Title                                            Title

Customer number:                                 Agreement number:
Customer address:
Recruitsoft, Inc.
182 Second Street
San Francisco, CA 94105

                                                 Engagement number:
                                                 IBM contract representative:
                                                 IBM Services identifier: USFV5

After signing, please return a copy of this Agreement to the following address:

IBM Global Services, Harborview Plaza, 3031 North Rocky Point Drive West, Tampa,
FL 33607 Attention: Order Fulfillment Services

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