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<TITLE>sv8</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As
filed with the Securities and Exchange Commission on December&nbsp;7, 2007</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><B>Registration No.&nbsp;333- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>Form&nbsp;S-8</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>REGISTRATION STATEMENT<BR>
UNDER THE<BR>
SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>SuccessFactors, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(<I>Exact name of Registrant as specified in its charter</I>)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>94-3398453</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><I>(State or other jurisdiction of</I>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>(I.R.S. Employer</I></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><I>incorporation or organization)</I>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>Identification Number)</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>SuccessFactors, Inc.<BR>
1500 Fashion Island Blvd., Suite&nbsp;300<BR>
San Mateo, California 94404<BR>
(650)&nbsp;645-2000</B><BR>
<I>(Address, including zip code, and telephone number, including area code, of Registrant&#146;s principal executive offices)</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>2001 Stock Option Plan<BR>
2007 Equity Incentive Plan</B><BR>
<I>(Full title of the plans)</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Lars Dalgaard<BR>
President and Chief Executive Officer<BR>
SuccessFactors, Inc.<BR>
1500 Fashion Island Blvd., Suite&nbsp;300<BR>
San Mateo, California 94404<BR>
(650)&nbsp;645-2000</B></DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><I>(Name, address, including zip code, and telephone number, including area code, of agent for service)</I>

</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B><I>Please send copies of all communications to:</I></B><BR>
<B>Julian&nbsp;K. Ong, Esq.<BR>
Vice President, General Counsel and Secretary<BR>
SuccessFactors, Inc.<BR>
1500 Fashion Island Blvd., Suite&nbsp;300<BR>
San Mateo, California 94404<BR>
(650)&nbsp;645-2000</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Jeffrey R. Vetter, Esq.<BR>
William R. Schreiber, Esq.<BR>
Fenwick &#038; West LLP<BR>
801 California Street<BR>
Mountain View, California 94041<BR>
(650)&nbsp;988-8500</B></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="left"><B>Title of Each Class of Securities</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount to be</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering Price</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate Offering</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registration</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="left"><B>to be Registered</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registered (1)</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Per Unit</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price</B></TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fee</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock, $0.001 par value</DIV></TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">6,114,320 </TD>
    <TD nowrap style="border-top: 1px solid #000000">(2)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">13.15</TD>
    <TD nowrap style="border-top: 1px solid #000000">(3)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">$</TD>

<TD align="right" style="border-top: 1px solid #000000">80,403,308.00</TD>
    <TD nowrap style="border-top: 1px solid #000000">(3)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">2,468.39</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock, $0.001 par value</DIV></TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">12,525,359</TD>
    <TD nowrap style="border-top: 1px solid #000000">(4)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">4.88</TD>
    <TD nowrap style="border-top: 1px solid #000000">(5)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">61,123,751.92</TD>
    <TD nowrap style="border-top: 1px solid #000000">(5)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">1,876.50</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock, $0.001 par value</DIV></TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">1,104,031</TD>
    <TD nowrap style="border-top: 1px solid #000000">(6)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">13.15</TD>
    <TD nowrap style="border-top: 1px solid #000000">(3)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">14,518,007.65</TD>
    <TD nowrap style="border-top: 1px solid #000000">(3)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">445.71</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">19,743,710</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">$</TD>

<TD align="right" style="border-top: 1px solid #000000">156,045,067.57</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">$</TD>
    <TD align="right" style="border-top: 1px solid #000000">4,790.60</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 3pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the &#147;<B><I>Securities Act</I></B>&#148;),
this Registration Statement shall also cover any additional shares of the Registrant&#146;s common
stock that become issuable under the Registrant&#146;s 2001 Stock Option Plan or 2007 Equity
Incentive Plan by reason of any stock
dividend, stock split, recapitalization or other similar transaction effected without the
receipt of consideration that increases the number of the Registrant&#146;s outstanding shares of
common stock.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents shares available for grant or issuance, but not yet granted or subject to purchase
rights as of the date of this Registration Statement, under the Registrant&#146;s 2007 Equity
Incentive Plan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee in accordance with Rules
457(c) and (h)&nbsp;under the Securities Act and based upon the average of the high and low sales
prices reported on the NASDAQ Global Market on December&nbsp;3, 2007.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents shares subject to stock options granted under the Registrant&#146;s 2001 Stock Option
Plan outstanding as of November&nbsp;19, 2007.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the weighted average exercise price (rounded to the nearest cent) for outstanding
stock options described in note 4 above pursuant to Rule 457(h) under the Securities Act. The
offering price is estimated solely for purposes of calculating the registration fee.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents shares of the Registrant&#146;s common stock being registered for resale that have been
previously issued to the selling stockholders named in this Registration Statement pursuant to
the exercise of stock options granted under the Registrant&#146;s 2001 Stock Option Plan.</TD>
</TR>

</TABLE>



<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPLANATORY NOTE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under
cover of this Registration Statement on Form S-8 (the &#147;<B><I>Form&nbsp;S-8</I></B>&#148;) is a prospectus for common
stock of SuccessFactors, Inc. prepared in accordance with Part&nbsp;I of Form S-3 under the
Securities Act of 1933, as amended (the &#147;<B><I>Securities Act</I></B>&#148;). This prospectus has been prepared
pursuant to General Instruction C of Form S-8, in accordance with the requirements of Part&nbsp;I of
Form S-3, and may be used for reoffers and resales on a continuous or delayed basis in the
future of up to an aggregate of 1,104,031&nbsp;shares of common stock that have been issued to
certain current and former employees and directors of SuccessFactors, Inc. prior to
the filing of this Form S-8 and that constitute &#147;restricted securities&#148; or &#147;control securities&#148;
within the meaning of the Form S-8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Form S-8 relates to (i)&nbsp;6,114,320 shares of common stock to be issued in the future under
the SuccessFactors, Inc. 2007 Equity Incentive Plan,
(ii)&nbsp;12,525,359&nbsp;shares of common stock to
be issued in the future upon the exercise of outstanding stock options under the SuccessFactors,
Inc. 2001 Stock Option Plan (the &#147;<B><I>2001 Plan</I></B>&#148;)
and (iii)&nbsp;the resale of 1,104,031&nbsp;shares of common
stock previously issued pursuant to the exercise of stock options under the 2001 Plan to the
selling stockholders named in the resale prospectus included in this Form S-8 as described above.
The holders of 1,104,031&nbsp;shares of common stock that are being
registered in this Form S-8 are subject to lock-up agreements or market
standoff provisions that prohibit them from offering for sale, selling, granting any stock
option for the sale of, transferring or otherwise disposing of such shares for a period of at
least 180&nbsp;days as described in &#147;Shares Eligible for Future Sale &#150; Lock-Up Agreements&#148; in
SuccessFactors, Inc.&#146;s prospectus filed on November&nbsp;20, 2007 with the Securities and Commission
(the &#147;<B><I>SEC</I></B>&#148; or the &#147;<B><I>Commission</I></B>&#148;).
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->I - 1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART I</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1. Plan Information. (1)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;2. Registrant Information and Employee Plan Annual Information. (1)</B>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Information required by this Item to be contained in the Section 10(a) prospectus is omitted
from this Form S-8 in accordance with Rule&nbsp;428 under the Securities Act and the instructions
to Form S-8. In accordance with the rules and regulations of the Commission and the
instructions to Form S-8, such documents are not being filed with the Commission either as
part of this Form S-8 or as prospectuses or prospectus supplements pursuant to Rule&nbsp;424 under
the Securities Act.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>A prospectus prepared pursuant to General Instruction C of Form S-8, in accordance with the
requirements of Part&nbsp;I of Form S-3, which covers reoffers and resales on a continuous or delayed
basis of 1,104,031&nbsp;shares of common stock previously issued to the selling stockholders named in
this Form S-8 pursuant to the exercise of stock options granted under the 2001 Plan is set forth
below.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->I - 2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="f35941f3594101.gif" alt="(SUCCESSFACTORS LOGO)">
</DIV>


<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>SuccessFactors, Inc.</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>1,104,031&nbsp;SHARES<BR>
COMMON STOCK, PAR VALUE $0.001</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus relates to 1,104,031&nbsp;shares of common stock of SuccessFactors, Inc.
(&#147;<B><I>SuccessFactors</I></B>&#148;) that may be offered from time to time by certain selling stockholders named in
this prospectus (the &#147;<B><I>Selling Stockholders</I></B>&#148;) for their own accounts. Each of the Selling
Stockholders acquired these shares of common stock pursuant to the exercise of stock options
granted under the SuccessFactors 2001 Stock Option Plan (the &#147;<B><I>2001 Plan</I></B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Selling Stockholders may sell the shares in the open market at prevailing market prices on
the NASDAQ Global Market, or in private transactions at negotiated prices. The Selling
Stockholders may sell the shares directly, or may sell them through underwriters, brokers or
dealers. SuccessFactors will not receive any of the proceeds from sales made under this
prospectus. SuccessFactors is paying the expenses incurred in registering these shares, but all
selling and other expenses incurred by each of the Selling Stockholders will be borne by that
Selling Stockholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the NASDAQ Global Market under the symbol &#147;SFSF.&#148;
</DIV>

<DIV align="left" style="font-size: 11pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>See &#147;Risk Factors&#148; beginning on page I-7 to read about factors you should consider before
buying shares of our common stock.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense</B>.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The
date of this prospectus is December&nbsp;7, 2007
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->I - 3<!-- /Folio -->
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<DIV align="left">
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</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

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<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">Special Note Regarding Forward-Looking
Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-5</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">The Company</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-6</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-7</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-21</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">Dilution</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-21</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">Selling Stockholders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-22</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Plan of Distribution</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-25</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-27</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Experts</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-27</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">Where You Can Find More Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-28</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Incorporation of Documents by Reference</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">I-28</TD>
</TR>
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<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="f35941exv5w1.htm">EXHIBIT 5.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="f35941exv23w1.htm">EXHIBIT 23.1</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No dealer, salesperson or other person is authorized to give any information or to represent
anything not contained in this prospectus. You must not rely on any unauthorized information or
representations. This prospectus is an offer to sell only the shares offered hereby, and only under
circumstances and in jurisdictions where it is lawful to do so. The information contained in this
prospectus is current only as of its date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except where the context requires otherwise, in this prospectus &#147;company,&#148; &#147;SuccessFactors,&#148;
&#147;Registrant,&#148; &#147;we,&#148; &#147;us&#148; and &#147;our&#148; refer to SuccessFactors, Inc., a Delaware corporation, and where
appropriate, its subsidiaries.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->I - 4<!-- /Folio -->
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<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SPECIAL NOTE&nbsp;REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus includes or incorporates by reference forward-looking statements. All
statements contained in this prospectus and the documents incorporated by reference other than
statements of historical facts, including statements regarding our future results of operations and
financial position, our business strategy and plans and our objectives for future operations, are
forward-looking statements. The words &#147;believe,&#148; &#147;may,&#148; &#147;will,&#148; &#147;estimate,&#148; &#147;continue,&#148;
&#147;anticipate,&#148; &#147;intend,&#148; &#147;expect&#148; and similar expressions are intended to identify forward-looking
statements. We have based these forward-looking statements largely on our current expectations and
projections about future events and financial trends that we believe may affect our financial
condition, results of operations, business strategy, short-term and long-term business operations
and objectives, and financial needs. These forward-looking statements are subject to a number of
risks, uncertainties and assumptions, including those described in &#147;Risk Factors.&#148; In light of
these risks, uncertainties and assumptions, the future events and trends discussed in this
prospectus may not occur and actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot guarantee future results, levels of activity, performance or achievements. Except
as required under applicable law, we are under no duty to update any of these forward-looking
statements after the date of this prospectus to conform these statements to actual results or
revised expectations.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->I - 5<!-- /Folio -->
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<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE COMPANY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SuccessFactors is the leading provider of on-demand performance and talent management software
solutions that enable organizations to optimize the performance of their people to drive business
results. We deliver our application suite on demand to organizations of all sizes across all
industries and geographies. We strive to delight our customers by delivering innovative solutions,
a broad range of performance and talent management content, process expertise and best practices
knowledge gained from serving our large and varied customer base. We have over 1,300&nbsp;customers
across over 60&nbsp;industries, with more than two million end users in over 150&nbsp;countries using our
application suite in 18&nbsp;languages. Our customer base has organizations with as few as three and as
many as 85,000 end users, including American Airlines, Inc., American Electric Power Service
Corporation, AmerisourceBergen Corporation, Kimberly-Clark Corporation, Lowe&#146;s Companies,&nbsp;Inc.,
Quintiles Transnational Corp., Sutter Health, Textron Inc., T-Mobile USA,&nbsp;Inc., U.S. Postal
Inspection Service and Wachovia Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were incorporated in Delaware on May&nbsp;23, 2001 as Success Acquisition Corporation and have
been doing business as SuccessFactors, Inc. In April&nbsp;2007, we changed our name to SuccessFactors,
Inc. Our principal executive offices are located at 1500 Fashion Island Blvd., Suite&nbsp;300,
San&nbsp;Mateo, California 94404, and our telephone number is (650)&nbsp;645-2000. Our website address is
www.successfactors.com. The information on, or that can be accessed through, our website is not
part of this prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;SuccessFactors&#148; and the SuccessFactors logo are trademarks of SuccessFactors. Other service
marks, trademarks and tradenames referred to in this prospectus are the property of their
respective owners.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->I - 6<!-- /Folio -->
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<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investing in our common stock involves a high degree of risk. You should consider carefully
the risks and uncertainties described below, together with all of the other information in this
prospectus before deciding to invest in shares of our common stock. If any of the following risks
actually occurs, our business, financial condition, results of operations and future prospects
could be materially and adversely affected. In that event, the market price of our common stock
could decline and you could lose part or even all of your investment.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risk Related to Our Business and Industry</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We have a history of losses, we expect to continue to incur losses and we may not achieve or
sustain profitability in the future.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have incurred significant losses in each fiscal period since our inception in 2001. We
incurred net losses of $5.3&nbsp;million in 2004, $20.8&nbsp;million in 2005, $32.0&nbsp;million in 2006 and
$49.2&nbsp;million in the nine months ended September&nbsp;30, 2007. At September&nbsp;30, 2007, we had an
accumulated deficit of $115.0&nbsp;million. These losses and accumulated deficit were due to the
substantial investments we made to grow our business and acquire customers. For example, our sales
and marketing expenses were 127% of revenue in 2005, 99% in 2006 and 112% in the nine months ended
September&nbsp;30, 2007. We expect our operating expenses to increase in the future due to our expected
increased sales and marketing expenses, operations costs and general and administrative costs and
therefore we expect our losses to continue to increase for the foreseeable future. Furthermore, to
the extent we are successful in increasing our customer base, we will also incur increased losses
because costs associated with generating customer agreements are generally incurred up front, while
revenue is generally recognized ratably over the term of the agreement. You should not consider our
recent revenue growth as indicative of our future performance. Accordingly, we cannot assure you
that we will achieve profitability in the future or that, if we do become profitable, we will
sustain profitability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our independent registered public accounting firm identified numerous material audit
adjustments, all of which we subsequently recorded, and noted certain material weaknesses in our
internal control over financial reporting. Failure to achieve and maintain effective internal
control over financial reporting could result in our failure to accurately report our financial
results.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the audit of our consolidated financial statements for the three-year period ended
December&nbsp;31, 2005, our independent registered public accounting firm noted in its report to our
audit committee that we had several material weaknesses in our internal controls over financial
reporting. In addition to these material weaknesses, our independent registered public accounting
firm also commented on our lack of accounting policies and process narratives and our lack of
segregation of duties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the audit of our consolidated financial statements, our independent
registered public accounting firm noted a material weakness in its report to our audit committee
relating to an insufficient number of permanent and adequately-experienced accounting staff. In
addition to this material weakness, our independent registered public accounting firm noted two
significant deficiencies in our internal control over financial reporting related to our lack of
certain formal accounting policies and process narratives and our lack of segregation of duties.
This material weakness resulted in a number of audit adjustments to our consolidated financial
statements for 2006 that were noted during the course of the audit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are in the process of taking steps intended to remedy these material weaknesses and
significant deficiencies. Since these material weaknesses and significant deficiencies relate in
large part to inadequate staffing, we are addressing them through hiring additional accounting and
finance personnel. We will not be able to fully address this material weakness and these
significant deficiencies until these steps have been completed. If we fail to further increase and
maintain the number and expertise of our staff for our accounting and finance functions and to
improve and maintain internal control over financial reporting adequate to meet the demands that
will be placed upon us as a public company, including the requirements of the Sarbanes-Oxley Act of
2002, or the Sarbanes-Oxley Act, we may be unable to report our financial results accurately and
prevent fraud.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore, the rules of the Commission, require that, as a publicly-traded company, we file
periodic reports containing our financial statements within a specified time following the
completion of quarterly and annual periods. In addition, commencing with our fiscal year ending
December&nbsp;31, 2008, we must perform system and process evaluation and testing of our internal
control over financial reporting to allow management and our independent registered public
accounting firm to report on the effectiveness of our internal control over financial reporting, as
required by Section&nbsp;404 of the Sarbanes-Oxley Act. Our compliance with Section&nbsp;404 of the
Sarbanes-Oxley Act will require that we incur substantial accounting expense and expend significant
management efforts. Prior to our initial public offering on November&nbsp;19, 2007, we have never been
required to test our internal controls within a specified period, and, as a result, we may
experience difficulty in meeting these reporting requirements in a timely manner, particularly if a
material weakness or significant deficiencies persist. If we are not able to comply with the SEC
reporting requirements or the requirements of Section&nbsp;404 of the Sarbanes-Oxley Act in a timely
manner, or if we or our independent registered public accounting firm continues to note or identify
deficiencies in our internal control over financial reporting that are deemed to be material
weaknesses, the market price of our stock could decline and we could be subject to sanctions or
investigations by the stock exchange upon which our common stock is listed, the SEC or other
regulatory authorities, which would require additional financial and management resources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Even if we are able to report our financial statements accurately and timely, if we do not
make all the necessary improvements to address the material weakness, continued disclosure of a
material weakness will be required in future filings with the SEC, which could cause our reputation
to be harmed and our stock price to decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Because we recognize revenue from our customers over the term of their agreements, downturns
or upturns in sales may not be immediately reflected in our operating results.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We recognize revenue over the terms of our customer agreements, which typically range from one
to three years. As a result, most of our quarterly revenue results from agreements entered into
during previous quarters. Consequently, a shortfall in demand for our application suite in any
quarter may not adversely affect our revenue for that quarter, but will negatively affect revenue
in future quarters. In particular, if such a shortfall were to occur in our fourth quarter, it may
be more difficult for us to increase our customer sales to recover from such a shortfall as we have
historically entered into a significant portion of our customer agreements during the fourth
quarter. In addition, we may be unable to adjust our cost structure to reflect reduced revenue.
Accordingly, the effect of significant downturns in sales of our application suite may not be fully
reflected in our results of operations until future periods. Our subscription model also makes it
difficult for us to rapidly increase our revenue through additional sales in any period, as revenue
from new customers must be recognized over the applicable subscription term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Because we recognize revenue from our customers over the term of their agreements but incur
most costs associated with generating customer agreements upfront, rapid growth in our customer
base will result in increased losses.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the expenses associated with generating customer agreements are generally incurred up
front, but the resulting revenue is recognized over the life of the customer agreement, increased
growth in the number of customers will result in our recognition of more costs than revenue in the
earlier periods of the terms of our agreements even though the customer is expected to be
profitable for us over the term of the agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our business depends substantially on customers renewing their agreements and purchasing
additional modules or users from us. Any decline in our customer renewals would harm our future
operating results.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order for us to improve our operating results, it is important that our customers renew
their agreements with us when the initial contract term expires and also purchase additional
modules or additional users. Our customers have no obligation to renew their subscriptions after
the initial subscription period, and we cannot assure you that customers will renew subscriptions
at the same or higher level of service, if at all. Although our renewal rates have been high
historically, some of our customers have elected not to renew their agreements with us. Moreover,
under some circumstances, some of our customers have the right to cancel their agreements prior to
the expiration of the term. Our customers&#146; renewal rates may decline or fluctuate as a result of a
number of factors, including their satisfaction or dissatisfaction with our application suite,
pricing, the prices of competing products or services,
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">mergers and acquisitions affecting our customer base, or reductions in our customers&#146; spending
levels. If our customers do not renew their subscriptions, renew on less favorable terms or fail to
purchase additional modules or users, our revenue may decline, and we may not realize significantly
improved operating results from our customer base.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We have limited experience with respect to our pricing model. If the prices we charge for our
application suite are unacceptable to our customers, our revenue and operating results may be
harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have limited experience with respect to determining the appropriate prices for our
application suite. As the market for our solution matures, or as new competitors introduce new
products or services that compete with ours, we may be unable to renew our agreements with existing
customers or attract new customers at the same price or based on the same pricing model as we have
used historically. In addition, we have only recently commercially introduced certain of our
modules. As a result, in the future it is possible that competitive dynamics in our market may
require us to change our pricing model or reduce our prices, which could have a material adverse
effect on our revenue, gross margin and other operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We have derived a substantial majority of our subscription revenue from sales of our
performance management and goal management modules. If these modules are not widely accepted by new
customers, our operating results will be harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have derived a substantial majority of our historical revenue from sales of our <I>Performance
Management </I>and <I>Goal Management </I>modules. If these modules do not remain competitive, or if we
experience pricing pressure or reduced demand for these modules, our future revenue could be
negatively affected, which would harm our future operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We have experienced rapid growth in recent periods. If we fail to manage our growth
effectively, we may be unable to execute our business plan, maintain high levels of service or
adequately address competitive challenges.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have recently experienced a period of rapid growth in our headcount and operations. For
example, we grew from 188&nbsp;employees at December&nbsp;31, 2005 to 697&nbsp;employees at September&nbsp;30, 2007. We
have also increased the size of our customer base from 341 customers at December&nbsp;31, 2005 to over
1,400 customers at September&nbsp;30, 2007. We anticipate that we will further expand our operations.
This growth has placed, and future growth will place, a significant strain on our management,
administrative, operational and financial infrastructure. Our success will depend in part on our
ability to manage this growth effectively. To manage the expected growth of our operations and
personnel, we will need to continue to improve our operational, financial and management controls
and our reporting systems and procedures. Failure to effectively manage growth could result in
difficulty in implementing customers, declines in quality or customer satisfaction, increases in
costs, difficulties in introducing new features or other operational difficulties, and any of these
difficulties could adversely impact our business performance and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Failure to adequately expand our direct sales force and develop and expand our indirect sales
channel will impede our growth.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will need to continue to expand our sales and marketing infrastructure in order to grow our
customer base and our business. We plan to continue to expand our direct sales force and engage
additional third-party channel partners, both domestically and internationally. Identifying and
recruiting these people and entities and training them in the use of our application suite require
significant time, expense and attention. This expansion will require us to invest significant
financial and other resources. We typically have no long-term agreements or minimum purchase
commitments with any of our channel partners, and our agreements with these channel partners do not
prohibit them from offering products or services that compete with ours. Our business will be
seriously harmed if our efforts to expand our direct and indirect sales channels do not generate a
corresponding significant increase in revenue. In particular, if we are unable to hire, develop and
retain talented sales personnel or if our new direct sales personnel are unable to achieve desired
productivity levels in a reasonable period of time, we may not be able to significantly increase
our revenue and grow our business.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If our security measures are breached or unauthorized access to customer data is otherwise
obtained, our application suite may be perceived as not being secure, customers may curtail or stop
using our application suite, and we may incur significant liabilities.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations involve the storage and transmission of our customers&#146; confidential
information, and security breaches could expose us to a risk of loss of this information,
litigation, indemnity obligations and other liability. If our security measures are breached as a
result of third-party action, employee error, malfeasance or otherwise, and, as a result, someone
obtains unauthorized access to our customers&#146; data, including personally identifiable information
regarding users, our reputation will be damaged, our business may suffer and we could incur
significant liability. Because techniques used to obtain unauthorized access or to sabotage systems
change frequently and generally are not recognized until launched against a target, we may be
unable to anticipate these techniques or to implement adequate preventative measures. If an actual
or perceived breach of our security occurs, the market perception of the effectiveness of our
security measures could be harmed and we could lose potential sales and existing customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Because our application suite collects, stores and reports personal information of job
applicants and employees, privacy concerns could result in liability to us or inhibit sales of our
application suite.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many federal, state and foreign government bodies and agencies have adopted or are considering
adopting laws and regulations regarding the collection, use and disclosure of personal information.
Because many of the features of our application suite collect, store and report on personal
information, any inability to adequately address privacy concerns, even if unfounded, or comply
with applicable privacy laws, regulations and policies, could result in liability to us, damage our
reputation, inhibit sales and harm our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore, the costs of compliance with, and other burdens imposed by, such laws,
regulations and policies that are applicable to the businesses of our customers may limit the use
and adoption of our application suite and reduce overall demand for it. Privacy concerns, whether
or not valid, may inhibit market adoption of our application suite in certain industries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The market for our application suite depends on widespread adoption of strategic HR&nbsp;software.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Widespread adoption of our solution depends on the widespread adoption of strategic
HR&nbsp;software by organizations. Because we believe that most organizations have not adopted strategic
HR&nbsp;functions, it is uncertain whether they will purchase software or on-demand applications for
this function. Accordingly, we cannot assure you that an on-demand model for strategic HR&nbsp;software
will achieve and sustain the high level of market acceptance that is critical for the success of
our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The market for on-demand applications is at an early stage of development, and if it does not
develop or develops more slowly than we expect, our business will be harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market for on-demand applications is at an early stage of development, and these
applications may not achieve and sustain high levels of demand and market acceptance. Our success
will depend on the willingness of organizations to increase their use of on-demand applications.
Many companies have invested substantial personnel and financial resources to integrate traditional
enterprise software into their businesses, and therefore may be reluctant or unwilling to migrate
to on-demand applications. We have encountered customers in the past that have been unwilling to
subscribe to our application suite because they could not install it on their premises. Other
factors that may affect the market acceptance of on-demand applications include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>perceived security capabilities and reliability;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>perceived concerns about ability to scale operations for large enterprise customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>concerns with entrusting a third party to store and manage critical employee data; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the level of configurability of on-demand applications.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If organizations do not perceive the benefits of on-demand applications, then the market for
these applications may not develop further, or it may develop more slowly than we expect, either of
which would adversely affect our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The market in which we participate is intensely competitive, and if we do not compete
effectively, our operating results could be harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market for human resources applications is fragmented, rapidly evolving and highly
competitive, with relatively low barriers to entry in some segments. Many of our competitors and
potential competitors are larger and have greater name recognition, much longer operating
histories, larger marketing budgets and significantly greater resources than we do, and with the
introduction of new technologies and market entrants, we expect competition to intensify in the
future. If we fail to compete effectively, our business will be harmed. Some of our principal
competitors offer their products or services at a lower price, which has resulted in pricing
pressures. If we are unable to achieve our target pricing levels, our operating results would be
negatively impacted. In addition, pricing pressures and increased competition generally could
result in reduced sales, reduced margins, losses or the failure of our application suite to achieve
or maintain more widespread market acceptance, any of which could harm our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face competition from paper-based processes and desktop software tools. We also face
competition from custom-built software that is designed to support the needs of a single
organization, and from third-party human resources application providers. These software vendors
include, without limitation, Authoria, Inc., Cornerstone OnDemand, Inc., Halogen Software Inc.,
Kenexa Corporation, Oracle Corporation, Plateau Systems, Ltd., Salary.com, Inc., SAP AG, Softscape,
Inc., StepStone Solutions GmbH, SumTotal Systems Inc., Taleo Corporation and Vurv Technology
(formerly Recruitmax).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of our competitors are able to devote greater resources to the development, promotion and
sale of their products and services. In addition, many of our competitors have established
marketing relationships, access to larger customer bases and major distribution agreements with
consultants, system integrators and resellers. Moreover, many software vendors could bundle human
resources products or offer them at a low price as part of a larger product sale. In addition, some
competitors may offer software that addresses one or a limited number of strategic human resource
functions at lower prices or with greater depth than our application suite. As a result, our
competitors might be able to respond more quickly and effectively than we can to new or changing
opportunities, technologies, standards or customer requirements. Further, some potential customers,
particularly large enterprises, may elect to develop their own internal solutions. For all of these
reasons, we may not be able to compete successfully against our current and future competitors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our quarterly results can fluctuate and, if we fail to meet the expectations of analysts or
investors, our stock price and the value of your investment could decline substantially.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our quarterly financial results may fluctuate as a result of a variety of factors, many of
which are outside of our control. If our quarterly financial results fall below the expectations of
investors or any securities analysts who follow our stock, the price of our common stock could
decline substantially. Fluctuations in our quarterly financial results may be caused by a number of
factors, including, but not limited to, those listed below:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to attract new customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>customer renewal rates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the extent to which customers increase or decrease the number of modules or users upon
any renewal of their agreements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the level of new customers as compared to renewal customers in a particular period;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the addition or loss of large customers, including through acquisitions or
consolidations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the mix of customers between small, mid-sized and enterprise customers;</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in our pricing policies or those of our competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>seasonal variations in the demand for our application suite, which has historically been
highest in the fourth quarter of a year;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount and timing of operating expenses, particularly sales and marketing, related to
the maintenance and expansion of our business, operations and infrastructure;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing and success of new product and service introductions by us or our competitors
or any other change in the competitive dynamics of our industry, including consolidation
among competitors, customers or strategic partners;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>network outages or security breaches;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing of expenses related to the development or acquisition of technologies or
businesses and potential future charges for impairment of goodwill from acquired
companies;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic, industry and market conditions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that our quarterly results of operations, including the levels of our revenue and
changes in deferred revenue, may vary significantly in the future and that period-to-period
comparisons of our operating results may not be meaningful. You should not rely on the results of
any one quarter as an indication of future performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The market for our application suite among large customers may be limited if they require
customized features or functions that we do not intend to provide.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prospective customers, especially large enterprise customers, may require customized features
and functions unique to their business processes. If prospective customers require customized
features or functions that we do not offer, then the market for our application suite will be more
limited among these types of customers and our business could suffer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We depend on our management team, particularly our Chief Executive Officer and our development
personnel, and the loss of one or more key employees or groups could harm our business and prevent
us from implementing our business plan in a timely manner.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success depends largely upon the continued services of our executive officers,
particularly our Chief Executive Officer, and other key employees. From time to time, there may be
changes in our executive management team resulting from the hiring or departure of executives,
which could disrupt our business. We are also substantially dependent on the continued service of
our existing development personnel because of the complexity of our application suite and
technologies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not have employment agreements with any of our personnel that require these personnel to
continue to work for us for any specified period and, therefore, they could terminate their
employment with us at any time. We do not maintain key person life insurance policies on any of our
employees. The loss of one or more of our key employees or groups could seriously harm our
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If we cannot maintain our corporate culture as we grow, we could lose the innovation,
teamwork, passion and focus on execution that we believe contribute to our success, and our
business may be harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that a critical contributor to our success has been our corporate culture, which we
believe fosters innovation, teamwork, passion for customers and focus on execution. As we grow and
change, we may find it difficult to maintain these important aspects of our corporate culture. Any
failure to preserve our culture could also negatively affect our ability to retain and recruit
personnel, and otherwise adversely affect our future success.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our growth depends in part on the success of our strategic relationships with third parties.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We anticipate that we will continue to depend on various third-party relationships in order to
grow our business. In addition to growing our indirect sales channels, we intend to pursue
additional relationships with other third parties, such as technology and content providers and
implementation partners. Identifying partners, negotiating and documenting relationships with them
require significant time and resources as does integrating third-party content and technology. Our
agreements with technology and content providers are typically non-exclusive and do not prohibit
them from working with our competitors or from offering competing services. Our competitors may be
effective in providing incentives to third parties to favor their products or services or to
prevent or reduce subscriptions to our application suite.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we are unsuccessful in establishing or maintaining our relationships with these third
parties, our ability to compete in the marketplace or to grow our revenue could be impaired and our
operating results would suffer. Even if we are successful, we cannot assure you that these
relationships will result in increased customer usage of our application suite or revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We rely on a small number of third-party service providers to host and deliver our application
suite, and any interruptions or delays in services from these third parties could impair the
delivery of our application suite and harm our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We currently host our application suite from three data centers&nbsp;&#151; one located in the United
States and two in Europe. We do not control the operation of any of these facilities, and we do not
have a backup facility in case one of these facilities ceases to operate. These facilities are
vulnerable to damage or interruption from natural disasters, fires, power loss, telecommunications
failures and similar events. They are also subject to break-ins, computer viruses, sabotage,
intentional acts of vandalism and other misconduct. The occurrence of a natural disaster or an act
of terrorism, a decision to close the facilities without adequate notice or other unanticipated
problems could result in lengthy interruptions, which would have a serious adverse impact on our
business. Additionally, our data center agreements are of limited duration and are subject to early
termination rights in certain circumstances, and the providers of our data centers have no
obligation to renew their agreements with us on commercially reasonable terms, or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also depend on access to the Internet through third-party bandwidth providers to operate
our business. If we lose the services of one or more of our bandwidth providers for any reason, we
could experience disruption in delivering our application suite or we could be required to retain
the services of a replacement bandwidth provider.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations also rely heavily on the availability of electricity, which also comes from
third-party providers. If we or the third-party data center facilities that we use to deliver our
services were to experience a major power outage or if the cost of electricity were to increase
significantly, our operations could be harmed. If we or our third-party data centers were to
experience a major power outage, we would have to rely on back-up generators, which might not work
properly or might not provide an adequate supply during a major power outage. Such a power outage
could result in a disruption of our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If our application suite fails to perform properly, our reputation will be harmed, our market
share would decline and we could be subject to liability claims.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The software used in our application suite is inherently complex and may contain material
defects or errors. Any defects in product functionality or that cause interruptions in the
availability of our application suite could result in:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>lost or delayed market acceptance and sales;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>breach of warranty claims;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sales credits or refunds to our customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>loss of customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>diversion of development and customer service resources;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>injury to our reputation.</TD>
</TR>

</TABLE>
</DIV>


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</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The costs incurred in correcting any material defects or errors might be substantial and could
adversely affect our operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of the large amount of data that we collect and manage, it is possible that hardware
failures or errors in our systems could result in data loss or corruption, or cause the information
that we collect to be incomplete or contain inaccuracies that our customers regard as significant.
Furthermore, the availability of our application suite could be interrupted by a number of factors,
including customers&#146; inability to access the Internet, the failure of our network or software
systems, security breaches or variability in user traffic for our application suite. We may be
required to issue credits or refunds or indemnify or otherwise be liable to our customers for
damages they may incur resulting from certain of these events. In addition to potential liability,
if we experience interruptions in the availability of our application suite, our reputation could
be harmed and we could lose customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our errors and omissions insurance may be inadequate or may not be available in the future on
acceptable terms, or at all. In addition, our policy may not cover any claim against us for loss of
data or other indirect or consequential damages and defending a suit, regardless of its merit,
could be costly and divert management&#146;s attention.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We rely on third-party computer hardware and software that may be difficult to replace or
which could cause errors or failures of our service.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on computer hardware, purchased or leased, and software licensed from third parties in
order to deliver our application suite. This hardware and software may not continue to be available
on commercially reasonable terms, or at all. Any loss of the right to use any of this hardware or
software could result in delays in our ability to provide our application suite until equivalent
technology is either developed by us or, if available, identified, obtained and integrated, which
could harm our business. In addition, errors or defects in third-party hardware or software used in
our application suite could result in errors or a failure of our application suite, which could
harm our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If we are not able to develop enhancements and new features that achieve market acceptance or
that keep pace with technological developments, our business will be harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to attract new customers and increase revenue from existing customers will depend
in large part on our ability to enhance and improve our existing application suite and to introduce
new features. The success of any enhancement or new product depends on several factors, including
timely completion, introduction and market acceptance. Any new feature or module that we develop or
acquire may not be introduced in a timely or cost-effective manner and may not achieve the broad
market acceptance necessary to generate significant revenue. If we are unable to successfully
develop or acquire new features or modules or to enhance our existing application suite to meet
customer requirements, our business and operating results will be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because we designed our application suite to operate on a variety of network, hardware and
software platforms using standard Internet tools and protocols, we will need to continuously modify
and enhance our application suite to keep pace with changes in Internet-related hardware, software,
communication, browser and database technologies. If we are unable to respond in a timely manner to
these rapid technological developments in a cost-effective manner, our application suite may become
less marketable and less competitive or obsolete and our operating results may be negatively
impacted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If we fail to develop widespread brand awareness cost-effectively, our business may suffer.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that developing and maintaining widespread awareness of our brand in a
cost-effective manner is critical to achieving widespread acceptance of our application suite and
attracting new customers. Brand promotion activities may not generate customer awareness or
increase revenue, and even if they do, any increase in revenue may not offset the expenses we incur
in building our brand. If we fail to successfully promote and maintain our brand, or incur
substantial expenses, we may fail to attract or retain customers necessary to realize a sufficient
return on our brand-building efforts, or to achieve the widespread brand awareness that is critical
for broad customer adoption of our application suite.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Because our long-term success depends, in part, on our ability to expand the sales of our
application suite to customers located outside of the United States, our business will be
susceptible to risks associated with international operations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A key element of our growth strategy is to expand our international operations and develop a
worldwide customer base. To date, we have not realized a material portion of our revenue from
customers outside the United States. Operating in international markets requires significant
resources and management attention and will subject us to regulatory, economic and political risks
that are different from those in the United States. Because of our limited experience with
international operations, we cannot assure you that our international expansion efforts will be
successful. In addition, we will face risks in doing business internationally that could adversely
affect our business, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to comply with differing technical and certification requirements outside the
United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties and costs associated with staffing and managing foreign operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater difficulty collecting accounts receivable and longer payment cycles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unexpected changes in regulatory requirements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the need to adapt our application suite for specific countries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties in understanding and complying with local laws, regulations and customs in
foreign jurisdictions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tariffs, export controls and other non-tariff barriers such as quotas and local content
rules;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>more limited protection for intellectual property rights in some countries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse tax consequences;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations in currency exchange rates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>restrictions on the transfer of funds;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>new and different sources of competition.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our failure to manage any of these risks successfully could harm our existing and future
international operations and seriously impair our overall business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Because competition for our target employees is intense, we may not be able to attract and
retain the quality employees we need to support our planned growth.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our future success will depend, to a significant extent, on our ability to attract and retain
high quality personnel. Competition for qualified management, technical and other personnel is
intense, and we may not be successful in attracting and retaining such personnel. If we fail to
attract and retain qualified employees, our ability to grow our business could be harmed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Any failure to protect our intellectual property rights could impair our ability to protect
our proprietary technology and our brand.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success and ability to compete depend in part upon our intellectual property. We primarily
rely on patent, copyright, trade secret and trademark laws, trade secret protection and
confidentiality or license agreements with our employees, customers, partners and others to protect
our intellectual property rights. However, the steps we take to protect our intellectual property
rights may be inadequate. We currently have only one issued patent.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->I -  15<!-- /Folio -->
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to protect our intellectual property rights, we may be required to spend significant
resources to monitor and protect these rights. Litigation brought to protect and enforce our
intellectual property rights could be costly, time-consuming and distracting to management and
could result in the impairment or loss of portions of our intellectual property. Furthermore, our
efforts to enforce our intellectual property rights may be met with defenses, counterclaims and
countersuits attacking the validity and enforceability of our intellectual property rights. Our
failure to secure, protect and enforce our intellectual property rights could seriously harm our
brand and adversely impact our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may be sued by third parties for alleged infringement of their proprietary rights.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is considerable patent and other intellectual property development activity in our
industry. Our success depends upon our not infringing upon the intellectual property rights of
others. Our competitors, as well as a number of other entities and individuals, may own or claim to
own intellectual property relating to our industry. From time to time, third parties may claim that
we are infringing upon their intellectual property rights, and we may be found to be infringing
upon such rights. In the future, we may receive claims that our application suite and underlying
technology infringe or violate the claimant&#146;s intellectual property rights. However, we may be
unaware of the intellectual property rights of others that may cover some or all of our technology
or application suite. Any claims or litigation could cause us to incur significant expenses and, if
successfully asserted against us, could require that we pay substantial damages or ongoing royalty
payments, prevent us from offering our services, or require that we comply with other unfavorable
terms. We may also be obligated to indemnify our customers or business partners in connection with
any such litigation and to obtain licenses, modify products, or refund fees, which could further
exhaust our resources. In addition, we may pay substantial settlement costs which could include
royalty payments in connection with any claim or litigation, whether or not successfully asserted
against us. Even if we were to prevail, any litigation regarding our intellectual property could be
costly and time-consuming and divert the attention of our management and key personnel from our
business operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our use of open source and third-party technology could impose limitations on our ability to
commercialize our application suite.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use open source software in our application suite. Although we monitor our use of open
source software closely, the terms of many open source licenses have not been interpreted by United
States courts, and there is a risk that such licenses could be construed in a manner that imposes
unanticipated conditions or restrictions on our ability to market our application suite. In such
event, we could be required to seek licenses from third parties in order to continue offering our
application suite, to re-engineer our technology or to discontinue offering our application suite
in the event re-engineering cannot be accomplished on a timely basis, any of which could adversely
affect our business, operating results and financial condition. We also incorporate certain
third-party technologies into our application suite and may desire to incorporate additional
third-party technologies in the future. Licenses to new third-party technology may not be available
to us on commercially reasonable terms, or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Changes in laws and/or regulations related to the Internet or changes in the Internet
infrastructure itself may cause our business to suffer.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The future success of our business depends upon the continued use of the Internet as a primary
medium for commerce, communication and business applications. Federal, state or foreign government
bodies or agencies have in the past adopted, and may in the future adopt, laws or regulations
affecting data privacy and the use of the Internet as a commercial medium. In addition, government
agencies or private organizations may begin to impose taxes, fees or other charges for accessing
the Internet. These laws or charges could limit the growth of Internet-related commerce or
communications generally, result in a decline in the use of the Internet and the viability of
Internet-based applications such as ours and reduce the demand for our application suite.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Internet has experienced, and is expected to continue to experience, significant user and
traffic growth, which has, at times, caused user frustration with slow access and download times.
If the Internet infrastructure is unable to support the demands placed on it, or if hosting
capacity becomes scarce, our business growth may be adversely affected. If we fail to meet service
level commitments, customers may be entitled to credits, refunds to the extent of cash paid for
future services, or termination.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may acquire other companies or technologies, which could divert our management&#146;s attention,
result in additional dilution to our stockholders and otherwise disrupt our operations and harm our
operating results.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may in the future seek to acquire or invest in businesses, products or technologies that we
believe could complement or expand our application suite, enhance our technical capabilities or
otherwise offer growth opportunities. The pursuit of potential acquisitions may divert the
attention of management and cause us to incur various expenses in identifying, investigating and
pursuing suitable acquisitions, whether or not they are consummated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we do not have any experience in acquiring other businesses. If we acquire
additional businesses, we may not be able to integrate the acquired personnel, operations and
technologies successfully, or effectively manage the combined business following the acquisition.
We also may not achieve the anticipated benefits from the acquired business due to a number of
factors, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unanticipated costs or liabilities associated with the acquisition;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>incurrence of acquisition-related costs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>diversion of management&#146;s attention from other business concerns;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>harm to our existing business relationships with business partners and customers as a
result of the acquisition;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the potential loss of key employees;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>use of resources that are needed in other parts of our business;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>use of substantial portions of our available cash to consummate the acquisition.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, a significant portion of the purchase price of companies we acquire may be
allocated to acquired goodwill and other intangible assets, which must be assessed for impairment
at least annually. In the future, if our acquisitions do not yield expected returns, we may be
required to take charges to our operating results based on this impairment assessment process,
which could harm our results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions could also result in dilutive issuances of equity securities or the incurrence of
debt, which could adversely affect our operating results. In addition, if an acquired business
fails to meet our expectations, our operating results, business and financial condition may suffer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We might require additional capital to support business growth, and this capital might not be
available on acceptable terms, or at all.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to continue to make investments to support our business growth and may require
additional funds to respond to business challenges, including the need to expand sales and
marketing activities, develop new features and modules to enhance our existing application suite,
to enhance our operating infrastructure and to acquire complementary businesses and technologies.
Accordingly, we may need to engage in equity or debt financings to secure additional funds. If we
raise additional funds through further issuances of equity or convertible debt securities, our
existing stockholders could suffer significant dilution, and any new equity securities we issue
could have rights, preferences and privileges superior to those of holders of our common stock. Any
debt financing secured by us in the future could involve restrictive covenants relating to our
capital raising activities and other financial and operational matters, which might make it more
difficult for us to obtain additional capital and to pursue business opportunities, including
potential acquisitions. In addition, we may not be able to obtain additional financing on terms
favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms
satisfactory to us, when we require it, our ability to continue to support our business growth and
to respond to business challenges could be significantly limited.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our business is subject to changing regulations regarding corporate governance and public
disclosure that will increase both our costs and the risk of noncompliance.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a public company, we will incur significant legal, accounting and other expenses that we
did not incur as a private company. In addition, the Sarbanes-Oxley Act, and rules subsequently
implemented by the SEC and The NASDAQ Stock Market, have imposed a variety of new requirements and
restrictions on public companies, including requiring changes in corporate governance practices.
Our management and other personnel will need to devote a substantial amount of time to these new
compliance initiatives. Moreover, these rules and regulations will increase our legal and financial
compliance costs and will make some activities more time-consuming and costly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The increased costs associated with operating as a public company will increase our net
losses, and may cause us to reduce costs in other areas of our business or increase the prices of
our application suite to offset the effect of such increased costs. Additionally, if these
requirements divert our management&#146;s attention from other business concerns, they could have a
material adverse effect on our business, financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Changes in financial accounting standards or practices may cause adverse, unexpected financial
reporting fluctuations and affect our reported results of operations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A change in accounting standards or practices can have a significant effect on our reported
results and may even affect our reporting of transactions completed before the change is effective.
New accounting pronouncements and varying interpretations of accounting pronouncements have
occurred and may occur in the future. Changes to existing rules or the questioning of current
practices may adversely affect our reported financial results or the way we conduct our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related to Ownership of Our Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>There was no market for our common stock prior to our initial public offering, our stock price
may be volatile or may decline regardless of our operating performance, and you may not be able to
resell your shares at or above the initial public offering price.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was no public market for our common stock prior to our initial public offering on
November&nbsp;19, 2007. An active or liquid market in our common stock may not develop or, if it does
develop, may not be sustainable. The trading prices of the securities of technology companies have
been and are expected to continue to be highly volatile. The market price of our common stock may
fluctuate significantly in response to numerous factors, many of which are beyond our control,
including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>price and volume fluctuations in the overall stock market;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in operating performance and stock market valuations of other technology
companies generally, or those in our industry in particular;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actual or anticipated fluctuations in our operating results;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the financial projections we may provide to the public, any changes in these projections
or our failure to meet these projections;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in financial estimates by any securities analysts who follow our company, our
failure to meet these estimates, or failure of those analysts to initiate or maintain
coverage of our stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rating downgrades by any securities analysts who follow our company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>announcements by us or our competitors of significant technical innovations,
acquisitions, strategic partnerships, joint ventures or capital commitments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the public&#146;s response to our press releases or other public announcements, including our
filings with the SEC;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->I -  18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>market conditions or trends in our industry or the economy as a whole;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the loss of key personnel;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>lawsuits threatened or filed against us;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>future sales of our common stock by our executive officers, directors and significant
stockholders;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other events or factors, including those resulting from war, incidents of terrorism or
responses to these events.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the stock markets have experienced significant price and volume fluctuations that
have affected and continue to affect the market prices of equity securities of many technology
companies. Stock prices of many technology companies have fluctuated in a manner unrelated or
disproportionate to the operating performance of those companies. In the past, stockholders have
instituted securities class action litigation following a decline in stock price. If we were to
become involved in securities litigation, it could subject us to substantial costs, divert
resources and the attention of management from our business and adversely affect our business,
operating results and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>A significant portion of our total outstanding shares may be sold into the market in the near
future. If there are substantial sales of shares of our common stock, the price of our common stock
could decline.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The price of our common stock could decline if there are substantial sales of our common stock
or if there is a large number of shares of our common stock available for sale. Based on the number
of shares outstanding as of September&nbsp;30, 2007, we will have 49,743,807&nbsp;outstanding shares of our
common stock. This includes the shares that we sold in our initial public offering on November&nbsp;19,
2007, which may be resold in the public market immediately. The remaining 38,953,807&nbsp;shares,
or&nbsp;78%, of our outstanding shares after our initial public offering are currently restricted as a
result of market standoff and/or lock-up agreements but will be able to be sold in the near future
as set forth below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date Available for Sale into Public Market</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">no shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Immediately after our initial public offering.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">38,953,807&nbsp;shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">181&nbsp;days after the date of the prospectus for our
initial public offering (November&nbsp;19, 2007), of which
33,815,901&nbsp;shares will be subject to the limitations
under Rule&nbsp;144 or 701, of which 202,084&nbsp;shares will be
unvested and subject to our right of repurchase.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of an aggregate of 32,546,079&nbsp;shares of our common stock and the holder of a
warrant to purchase 499,535&nbsp;shares of common stock will have rights, subject to some conditions, to
require us to file registration statements covering their shares or to include their shares in
registration statements that we may file for ourselves or our stockholders. All of these shares are
subject to market standoff and/or lock-up agreements restricting their sale for 180&nbsp;days after the
date of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 180-day restricted period under the lock-up agreements with the underwriters will be
automatically extended if: (1)&nbsp;during the last 17&nbsp;days of the 180-day restricted period we issue an
earnings release or material news or a material event relating to us occurs; or (2)&nbsp;prior to the
expiration of the 180-day restricted period, we announce that we will release earnings results
during the 16-day period beginning on the last day of the 180-day period, in which case the
restrictions described in the preceding paragraph will continue to apply until the expiration of
the 18-day period beginning on the issuance of the earnings release or the occurrence of the
material news or material event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market price of the shares of our common stock could decline as a result of sales of a
substantial number of our shares in the public market or the perception in the market that the
holders of a large number of shares intend to sell their shares.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->I -  19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If securities or industry analysts do not publish research or publish inaccurate or
unfavorable research about our business, our stock price and trading volume could decline.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trading market for our common stock will depend in part on the research and reports that
securities or industry analysts publish about us or our business. We currently do not have and may
never obtain research coverage by securities analysts, and industry analysts that currently cover
us may cease to do so. If no securities analysts commence coverage of our company, or if industry
analysts cease coverage of our company, the trading price for our stock would be negatively
impacted. In the event we obtain securities analyst coverage, if one or more of the analysts who
cover us downgrade our stock or publish inaccurate or unfavorable research about our business, our
stock price would likely decline. If one or more of these analysts cease coverage of our company or
fail to publish reports on us regularly, demand for our stock could decrease, which might cause our
stock price and trading volume to decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our directors, executive officers and principal stockholders have substantial control over us
and could delay or prevent a change in corporate control.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our directors, executive officers and holders of more than 5% of our common stock, together
with their affiliates, will beneficially own, in the aggregate, approximately&nbsp;78% of our
outstanding common stock. As a result, these stockholders, acting together, would have the ability
to control the outcome of matters submitted to our stockholders for approval, including the
election of directors and any merger, consolidation or sale of all or substantially all of our
assets. In addition, these stockholders, acting together, would have the ability to control the
management and affairs of our company. Accordingly, this concentration of ownership might harm the
market price of our common stock by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>delaying, deferring or preventing a change in our control;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impeding a merger, consolidation, takeover or other business combination involving us;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>discouraging a potential acquirer from making a tender offer or otherwise attempting to
obtain control of us.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Delaware law and provisions in our restated certificate of incorporation and restated bylaws
could make a merger, tender offer or proxy contest difficult, which could depress the trading price
of our common stock.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a Delaware corporation and the anti-takeover provisions of Delaware law may discourage,
delay or prevent a change of control by prohibiting us from engaging in a business combination with
an interested stockholder for a period of three years after the person becomes an interested
stockholder, even if a change of control would be beneficial to our existing stockholders. In
addition, our restated certificate of incorporation and restated bylaws contain provisions that may
make the acquisition of our company more difficult without the approval of our Board of Directors,
including the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Board of Directors is classified into three classes of directors with staggered
three-year terms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>only our Chairperson of the Board of Directors, our Chief Executive Officer, our
President or a majority of our Board of Directors is authorized to call a special meeting of
stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our stockholders are only able to take action at a meeting of stockholders and not by
written consent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>vacancies on our Board of Directors are to be filled only by our Board of Directors and
not by our stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our restated certificate of incorporation authorizes undesignated preferred stock, the
terms of which may be established and shares of which may be issued without stockholder
approval;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>advance notice procedures apply for stockholders to nominate candidates for election as
directors or to bring matters before an annual meeting of stockholders.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->I -  20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If shares are resold by the Selling Stockholders, we will not receive any proceeds from such
sale. The shares will be offered for the respective accounts of the Selling Stockholders. See the
sections titled &#147;Selling Stockholders&#148; and &#147;Plan of Distribution&#148; below.
</DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DILUTION</B>
</DIV>

&nbsp;



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you invest in our common stock, your interest will be diluted to the extent of the
difference between the price per share you pay for our common stock and the as adjusted pro forma
net tangible book value per share of our common stock after our initial public offering on November
19, 2007. After giving effect to (1)&nbsp;our sale in our initial public offering of 10,000,000&nbsp;shares
of common stock at the initial public offering price of $10.00 per share, after deducting
underwriting discounts and commissions and estimated offering expenses payable by us, (2)&nbsp;the
repayment in full of the outstanding principal and accrued interest, which was approximately
$20.7&nbsp;million as of September&nbsp;30, 2007, on our loan from Lighthouse Capital Partners&nbsp;V, L.P.,
together with approximately $0.3&nbsp;million of prepayment fees and (3)&nbsp;the expensing of debt issuance
and related costs of approximately $1.6&nbsp;million for this loan, our pro forma as adjusted net
tangible book value as of September&nbsp;30, 2007 would have been approximately $26.5&nbsp;million, or $0.54
per share of common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->I -  21<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELLING STOCKHOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares that may be offered from time to time by the Selling Stockholders named below
pursuant to this prospectus have been acquired by the Selling Stockholders upon exercise of stock
options granted under the 2001 Plan and constitute &#147;restricted securities&#148; or &#147;control securities&#148;
within the meaning of the Form S-8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the name of each Selling Stockholder, the amount of common
stock beneficially owned by him or her as of October&nbsp;31, 2007, the amount of common stock that he or she
may offer and the amount of common stock to be beneficially owned by him or her subsequent to this
offering. Since each Selling Stockholder may sell all or some portion of the shares of common
stock beneficially owned, only an estimate (assuming that he or she sells all of the shares offered
hereby) can be given as to the number of shares of common stock that will be beneficially owned by
him or her subsequent to this offering. To our knowledge, none of the Selling Stockholders is a
broker-dealer or an affiliate of a broker-dealer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beneficial ownership is determined in accordance with the rules of the Commission and thus
represents voting or investment power with respect to our securities. Unless otherwise indicated
below, to our knowledge, the persons named in the table have sole voting and sole investment power
with respect to all shares beneficially owned, subject to community property laws where applicable.
Shares of our common stock subject to stock options that are currently exercisable or exercisable
within 60&nbsp;days of October&nbsp;31, 2007, are deemed to be outstanding and to be beneficially owned by
the person holding the stock options for the purpose of computing the percentage ownership of that
person but are not treated as outstanding for the purpose of computing the percentage ownership of
any other person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentage
ownership of our common stock before this offering is based on
51,528,394&nbsp;shares of
our common stock outstanding as of October&nbsp;31, 2007, which includes 32,550,241&nbsp;shares of common
stock resulting from the automatic conversion of all outstanding shares of our preferred stock upon
the completion of our initial public offering, as if this conversion had occurred as of October&nbsp;31,
2007, and includes our sale of 10,000,000&nbsp;shares of common stock and the
exercise of  the underwriters&#146; option to
purchase an additional 1,618,500 shares of common stock in our initial public offering, as
if this sale had occurred as of October&nbsp;31, 2007.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares Beneficially</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Owned Before Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Registered</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Owned After Offering</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Beneficial Owners</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percentage</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Erik
Berggren(1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,333</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,917</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">416</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">%</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Brian Brett(2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John Buie(3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">97,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">92,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Douglas J. Burgum(4)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">280,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">250,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Kevin Copithorne(5)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,250</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,250</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eric C.W. Dunn(6)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,652,761</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,602,761</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7.0</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bruce C. Felt, Jr.(7)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">500,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">400,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">100,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lim
Foo(8)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">531</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">531</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eugene D. Galvez(9)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,250</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,625</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">625</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ricardo Lacson(10)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4,312</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,375</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">937</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Elizabeth A. Nelson(11)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">130,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">80,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Veronique K. Newman(12)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,166</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,583</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">583</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Namdar Saleh(13)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Steven Sommer(14)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Randy Stevens(15)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">65,625</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">65,625</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David N. Strohm(16)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13,483,781</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13,433,781</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David G. Whorton(17)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">102,035</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52,035</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Andreas Zwimpfer(18)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,833</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4,375</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,458</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Represents beneficial ownership of less than 1% of the outstanding shares of our common stock.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->I -  22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 416 shares subject to a stock option that is exercisable within 60&nbsp;days of
October&nbsp;31, 2007. Mr.&nbsp;Berggren acquired ownership of 2,917 shares pursuant to the exercise of
a stock option in 2007. Other than his employment with us and the
exercise of a stock option,
neither we nor our predecessors or affiliates have had a material relationship with Mr.
Berggren during the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Brett acquired ownership of 10,000 shares pursuant to the exercise of stock options in
2007. Other than his employment with us and the exercise of stock options, neither we nor our
predecessors or affiliates have had a material relationship with Mr.&nbsp;Brett during the last
three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 5,000 shares subject to a stock option that is exercisable within 60&nbsp;days of October
31, 2007. Mr.&nbsp;Buie acquired ownership of 92,500 shares pursuant to the exercise of stock
options in 2006 and 2007. Other than his employment with us and the exercise of stock
options, neither we nor our predecessors or affiliates have had a material relationship with
Mr.&nbsp;Buie during the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 30,000 shares subject to a stock option that is exercisable within 60&nbsp;days of
October&nbsp;31, 2007. Mr.&nbsp;Burgum acquired ownership of 250,000 shares pursuant to the exercise of
a stock option in 2007. Other than his service as a member of our Board of Directors and the
exercise of a stock option, neither we nor our predecessors or affiliates have had a material
relationship with Mr.&nbsp;Burgum during the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 1,250 shares subject to a stock option that is exercisable within 60&nbsp;days of October
31, 2007. Mr.&nbsp;Copithorne acquired ownership of 5,000 shares pursuant to the exercise of stock
options in 2006 and 2007. Other than his employment with us and the exercise of stock
options, neither we nor our predecessors or affiliates have had a material relationship with
Mr.&nbsp;Copithorne during the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 129,699&nbsp;shares held by Cardinal Venture Affiliates, L.P. and 3,473,062&nbsp;shares held
by CVP SBIC, L.P. Cardinal Venture Affiliates, L.P. and CVP SBIC, L.P. are managed by Cardinal
Ventures LLC. Mr.&nbsp;Dunn, Christian Borcher, Derek Blazesky, Joyce Chung and Christopher Hadsell
are the Managing Members of Cardinal Ventures LLC, and share voting and investment control
over these shares. The Managing Members of Cardinal Ventures LLC disclaim beneficial ownership
except to the extent of their respective direct pecuniary interests in these shares. Mr.&nbsp;Dunn
acquired ownership of 50,000 shares pursuant to the exercise of a stock option in 2007. Other
than his service as a member of our Board of Directors, the exercise
of a stock option and the
purchase of our common stock by Cardinal Venture Affiliates, L.P. and CVP SBIC, L.P., neither
we nor our predecessors or affiliates have had a material relationship with Mr.&nbsp;Dunn during
the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 100,000 shares subject to a stock option that is exercisable within 60&nbsp;days of
October&nbsp;31, 2007. Mr.&nbsp;Felt acquired ownership of 400,000 shares pursuant to the exercise of
a stock option in 2007. Other than his employment with us as our Chief Financial Officer and
the exercise of a stock option, neither we nor our predecessors or affiliates have had a
material relationship with Mr.&nbsp;Felt during the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Foo acquired ownership of 531 shares pursuant to the exercise of a stock option in
2007. Other than his employment with us and the exercise of a stock option, neither we nor our
predecessors or affiliates have had a material relationship with Mr.&nbsp;Foo during the last three
years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 625 shares subject to a stock option that is exercisable within 60&nbsp;days of October
31, 2007. Mr.&nbsp;Galvez acquired ownership of 1,625 shares pursuant
to the exercise of a stock
option in 2007. Other than his employment with us and the exercise of
a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Mr.&nbsp;Galvez during
the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 937 shares subject to a stock option that is exercisable within 60&nbsp;days of October
31, 2007. Mr.&nbsp;Lacson acquired ownership of 3,375 shares pursuant
to the exercise of a stock
option in 2007. Other than his employment with us and the exercise
of a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Mr.&nbsp;Lacson during
the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 30,000 shares subject to a stock option that is exercisable within 60&nbsp;days of
October&nbsp;31, 2007. Ms.&nbsp;Nelson acquired ownership of 50,000 shares pursuant to the exercise of
a stock option in 2007. Other than her service as a member of our Board of Directors, the
exercise of a stock option and the purchase of our common stock, neither we nor our
predecessors or affiliates have had a material relationship with Ms.&nbsp;Nelson during the last
three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 583 shares subject to a stock option that is exercisable within 60&nbsp;days of October
31, 2007. Ms.&nbsp;Newman acquired ownership of 1,583 shares pursuant
to the exercise of a stock
option in 2007. Other than her employment with us and the exercise of
a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Ms.&nbsp;Newman during
the last three years.</TD>
</TR>

</TABLE>


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</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(13)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 4,000 shares subject to a stock option that is exercisable within 60&nbsp;days of October
31, 2007. Mr.&nbsp;Saleh acquired ownership of 6,500 shares pursuant
to the exercise of a stock
option in 2007. Other than his employment with us and the exercise of
a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Mr.&nbsp;Saleh during
the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(14)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Sommer acquired ownership of 60,000 shares pursuant
to the exercise of a stock option in
2007. Other than his employment with us and the exercise of a stock option, neither we nor our
predecessors or affiliates have had a material relationship with Mr.&nbsp;Sommer during the last
three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(15)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Stevens acquired ownership of 65,625 shares pursuant
to the exercise of a stock option in
2007. Other than his employment with us and the exercise of a stock option, neither we nor our
predecessors or affiliates have had a material relationship with Mr.&nbsp;Stevens during the last
three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(16)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 12,880,787&nbsp;shares held by Greylock Equity Limited Partnership. Greylock Equity GP
Limited Partnership is the General Partner of Greylock Equity Limited Partnership. Mr.&nbsp;Strohm,
Henry F. McCance, Howard E. Cox, Jr., William W. Helman, William S. Kaiser and Roger L. Evans
are the General Partners of Greylock Equity GP Limited Partnership and share voting and
investment control over these shares and disclaim beneficial ownership except to the extent of
their respective direct pecuniary interests in these shares. Also includes 222,010&nbsp;shares held
by Mapache Investments, L.P. Mr.&nbsp;Strohm is a General Partner of Mapache Investments, L.P.
Mr.&nbsp;Strohm has voting and investment control over these shares and disclaims beneficial
ownership except to the extent of his direct pecuniary interest in these shares. Mr.&nbsp;Strohm
acquired ownership of 50,000 shares pursuant to the exercise of a stock option in 2007. Other
than his service as a member of our Board of Directors, the exercise
of a stock option and the
purchase of our common stock directly and by Greylock Equity Limited Partnership, neither we
nor our predecessors or affiliates have had a material relationship with Mr.&nbsp;Strohm during the
last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(17)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Whorton acquired ownership of 50,000 shares pursuant
to the exercise of a stock option in
2007. Other than his service as a member of our Board of Directors,
the exercise of a stock
option and the purchase of our common stock, neither we nor our predecessors or affiliates
have had a material relationship with Mr.&nbsp;Whorton during the last three years.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(18)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 2,458 shares subject to stock options that are exercisable within 60&nbsp;days of October
31, 2007. Mr.&nbsp;Zwimpfer acquired ownership of 4,375 shares
pursuant to the exercise of a stock
option in 2007. Other than his employment with us and the exercise of
a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Mr.&nbsp;Zwimpfer
during the last three years.</TD>
</TR>

</TABLE>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this prospectus is to allow the Selling Stockholders to offer for sale and sell
all or a portion of their shares acquired pursuant to the exercise of stock options granted under
the 2001 Plan. The Selling Stockholders and their successors, including their transferees,
pledgees or donees or their successors, may sell the shares of common stock offered under this
prospectus directly to purchasers or through underwriters, broker-dealers or agents, who may
receive compensation in the form of discounts, concessions or commissions from the selling
stockholder or the purchasers. These discounts, concessions or commissions as to any particular
underwriter, broker-dealer or agent may be in excess of those customary in the types of
transactions involved. Neither we nor the Selling Stockholders can presently estimate the amount
of this compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Selling Stockholders are subject to lock-up agreements or market standoff provisions that
prohibit them from offering for sale, selling, granting any option for the sale of, transferring or
otherwise disposing of such shares for a period of at least 180&nbsp;days as described in &#147;Shares
Eligible for Future Sale &#150; Lock-Up Agreements&#148; in our prospectus filed on November&nbsp;20, 2007 with
the Commission. In addition, shares to be offered or resold by means of this prospectus by the
Selling Stockholders may not exceed, during any three-month period, the amount specified in Rule
144(e) under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common stock offered under this prospectus may be sold in one or more transactions at
fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing
market prices, at varying prices determined at the time of sale, or at negotiated prices. These
sales may be effected in transactions, which may involve crosses or block transactions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on any national securities exchange or U.S. inter-dealer system of a registered
national securities association on which the common stock may be listed or quoted at the
time of sale;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the over-the-counter market;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in transactions otherwise than on these exchanges or systems or in the over-the-counter
market; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through the writing of stock options, whether the stock options are listed on an
options exchange or otherwise.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate proceeds to the Selling Stockholder from the sale of the common stock offered by
them will be the purchase price of the common stock less discounts and commissions, if any. Each
of the Selling Stockholders reserves the right to accept and, together with their agents from time
to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly
or through agents. We will not receive any of the proceeds from this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our outstanding common stock is listed for trading on the NASDAQ Global Market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Selling Stockholders and any underwriters, broker-dealers or agents that participate in
the sale of the common stock may be &#147;underwriters&#148; within the meaning of Section&nbsp;2(11) of the
Securities Act. Any discounts, commissions, concessions or profit they earn on any resale of the
shares may be underwriting discounts and commissions under the Securities Act. If the Selling
Stockholder is an &#147;underwriter&#148; within the meaning of Section&nbsp;2(11) of the Securities Act, the
Selling Stockholder will be subject to the prospectus delivery requirements of the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule
144 of the Securities Act may be sold under Rule&nbsp;144 of the Securities Act rather than pursuant to
this prospectus. A Selling Stockholder may not sell any common stock described in this prospectus
and may not transfer, devise or gift these securities by other means not described in this
prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent required, the specific common stock to be sold, the names of the Selling
Stockholder, the respective purchase prices and public offering prices, the names of any agent,
dealer or underwriter, and any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">applicable commissions or discounts with respect to a particular offer will be set forth in an
accompanying prospectus supplement or, if appropriate, a post-effective amendment to the
registration statement of which this prospectus is a part. This prospectus also may be used, with
our consent, by donees or pledgees of the Selling Stockholder, or by other persons acquiring shares
and who wish to offer and sell shares under circumstances requiring or making desirable its use.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to comply with the securities laws of some states, if applicable, the common stock
may be sold in these jurisdictions only through registered or licensed brokers or dealers.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the shares of common stock offered hereby will be passed upon for us by
Fenwick&nbsp;&#038; West LLP, Mountain View, California.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ernst &#038; Young LLP, an independent registered public accounting firm, has audited our consolidated
financial statements at December&nbsp;31, 2005 and 2006 and for each of the three years in the period
ended December&nbsp;31, 2006, included in our prospectus filed on November&nbsp;20, 2007 pursuant to Rule
424(b) under the Securities Act relating to the Registration Statement on Form S-1 (File No.
333-144758), as set forth in their report which is incorporated by reference in this prospectus and
elsewhere in the registration statement. We have incorporated by reference our consolidated
financial statements in this prospectus in reliance on Ernst &#038; Young LLP&#146;s report given on their
authority as experts in accounting and auditing.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to the informational reporting requirements of the Securities Exchange Act of
1934, as amended (the &#147;<B><I>Exchange Act</I></B>&#148;), and are required to file reports, proxy statements and other
information with the SEC. All such filings are available at the SEC Public Reference Room at 100 F
Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information
on the Public Reference Room. Our filings are also available free of charge at the website of the
SEC at www.sec.gov or our website at www.successfactors.com. A copy of any document incorporated
by reference in the registration statement of which this prospectus forms a part but which is not
delivered with this prospectus will be provided by us without charge to any person to whom this
prospectus has been delivered upon oral or written request to that person. Requests for documents
should be directed to SuccessFactors, Inc., Attention: General Counsel, 1500 Fashion Island Blvd.,
Suite&nbsp;300, San Mateo, California, 94404, telephone number (650)&nbsp;645-2000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where we summarize in this prospectus the material terms of any contract, agreement or other
document filed as an exhibit to the registration statement, the summary information provided in the
prospectus is less complete than the actual contract, agreement or document. You should refer to
the exhibits to the registration statement of which this prospectus forms a part for copies of the
actual contract, agreement or document.
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INCORPORATION OF DOCUMENTS BY REFERENCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed by us with the SEC pursuant to the Securities Act and the
Exchange Act are incorporated herein by reference into this prospectus:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Registrant&#146;s prospectus filed on November&nbsp;20, 2007 pursuant to Rule 424(b)
under the Securities Act relating to the Registration Statement on Form S-1 (File No.
333-144758); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of the Registrant&#146;s common stock contained in the Registrant&#146;s
Registration Statement on Amendment No.&nbsp;1 to Form 8-A filed on November&nbsp;13, 2007 under
Section 12(b) of the Exchange Act which incorporates by reference the &#147;Description of
Capital Stock&#148; as set forth in Registrant&#146;s Registration Statement on Form S-1 (File
No.&nbsp;333-144758) and as originally filed with the SEC on July&nbsp;20, 2007, as subsequently
amended, and in the prospectus filed by the Registrant pursuant to Rule 424(b) under
the Securities Act, including any amendment or report filed for the purpose of updating
such description.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, all documents which we file pursuant to Sections&nbsp;13(a), 13(c), 14 and 15(d) of
the Exchange Act after the date of this prospectus and prior to the termination of this offering,
shall be deemed to be incorporated by reference herein and to be a part of this prospectus from the
date of the filing of such documents. Any statement contained in a document incorporated or deemed
to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of
this prospectus to the extent that a statement contained in this prospectus, or in any other
subsequently filed document which also is or is deemed to be incorporated by reference in this
prospectus, modifies or supersedes such statement. Any such statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
</DIV>


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</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="f35941f3594101.gif" alt="(SUCCESS FACTORS LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>1,104,031 SHARES<BR>
COMMON STOCK, PAR VALUE $0.001</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Prospectus</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>December&nbsp;7, 2007</B>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3. Incorporation of Documents by Reference.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed by the Registrant with the Commission pursuant to the Securities
Act and Securities Exchange Act of 1934, as amended (the &#147;<B><I>Exchange Act</I></B>&#148;), are incorporated herein
by reference:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Registrant&#146;s prospectus filed on November&nbsp;20, 2007 pursuant to Rule 424(b)
under the Securities Act relating to the Registration Statement on Form S-1, as amended
(File No.&nbsp;333-144758), or the Form S-1; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of the Registrant&#146;s common stock contained in the Registrant&#146;s
Registration Statement on Amendment No.&nbsp;1 to Form 8-A filed on November&nbsp;13, 2007 under
Section 12(b) of the Exchange Act, including any amendment or report filed for the
purpose of updating such description.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents subsequently filed by the Registrant pursuant to Sections&nbsp;13(a), 13(c), 14 and
15(d) of the Exchange Act prior to the filing of a post-effective amendment which indicates that
all securities offered hereby have been sold or which deregisters all securities then remaining
unsold, shall be deemed to be incorporated by reference herein and to be a part hereof from the
date of the filing of such documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless expressly incorporated into this Registration Statement, a report furnished on Form 8-K
prior or subsequent to the date hereof shall not be incorporated by reference into this
Registration Statement, except as to specific sections of such statements as set forth therein.
Any statement contained in a document incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this Registration Statement to the
extent that a statement contained in any subsequently filed document which also is deemed to be
incorporated by reference herein modifies or supersedes such statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. Description of Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5. Interests of Named Experts and Counsel.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. Indemnification of Directors and Officers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;145 of the Delaware General Corporation Law authorizes a court to award, or a
corporation&#146;s board of directors to grant, indemnity to its directors and officers under certain
circumstances and subject to certain limitations. The terms of Section&nbsp;145 of the Delaware General
Corporation Law are sufficiently broad to permit indemnification under certain circumstances for
liabilities, including reimbursement of expenses incurred, arising under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As permitted by the Delaware General Corporation Law, the Registrant&#146;s restated certificate of
incorporation contains provisions that eliminate the personal liability of its directors for
monetary damages for any breach of fiduciary duties as a director, except liability for the
following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any breach of the director&#146;s duty of loyalty to the Registrant or its
stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acts or omissions not in good faith or that involve intentional misconduct or a
knowing violation of law;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unlawful payments of dividends or unlawful stock repurchases or redemptions as
provided in Section&nbsp;174 of the Delaware General Corporation Law; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any transaction from which the director derived an improper personal benefit.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As permitted by the Delaware General Corporation Law, the Registrant&#146;s restated bylaws provide
that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Registrant is required to indemnify its directors and executive officers to
the fullest extent permitted by the Delaware General Corporation Law, subject to very
limited exceptions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Registrant may indemnify its other employees and agents as set forth in the
Delaware General Corporation Law;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->II - 1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Registrant is required to advance expenses, as incurred, to its directors and
executive officers in connection with a legal proceeding to the fullest extent permitted
by the Delaware General Corporation Law, subject to very limited exceptions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the rights conferred in the restated bylaws are not exclusive.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Registrant has entered into indemnity agreements with each of its current
directors and executive officers to provide them with additional contractual assurances regarding
the scope of the indemnification set forth in the Registrant&#146;s restated certificate of
incorporation and restated bylaws and to provide additional procedural protections. The
indemnification provisions in the Registrant&#146;s restated certificate of incorporation and restated
bylaws and the indemnification agreements entered into between the Registrant and each of its
directors and executive officers may be sufficiently broad to permit indemnification of the
Registrant&#146;s directors and executive officers for liabilities arising under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant currently carries liability insurance for its directors and officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Underwriting Agreement relating to the Registrant&#146;s initial public offering, effected
pursuant to the Registrant&#146;s Registration Statement on Form S-1, obligates Registrant&#146;s
underwriters to indemnify Registrant and its directors and officers for certain liabilities,
including certain liabilities arising under the Securities Act. Reference is hereby made to the
form of Underwriting Agreement filed as Exhibit&nbsp;1.1 to the Registrant&#146;s Registration Statement on
Form S-1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See also the undertakings set out in response to Item&nbsp;9 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7. Exemption From Registration Claimed.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares being reoffered and resold pursuant to the prospectus included herein were issued
pursuant to the 2001 Plan registered hereby and were deemed to be exempt from registration under
the Securities Act in reliance on Section&nbsp;4(2) of the Securities Act or Regulation&nbsp;D and Regulation
S promulgated thereunder, as transactions by an issuer not involving a public offering. The
recipients of securities in each such transaction represented their intention to acquire the
securities for investment only and not with a view to or for sale in connection with any
distribution thereof and appropriate legends were affixed to the share certificates and instruments
issued in such transactions. All recipients had adequate access, through their relationship with
the Registrant, to information about the Registrant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8. Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following exhibits are filed as part of this Registration Statement:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Incorporated by Reference</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filed</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit Description</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Form</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>File No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Filing Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Herewith</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Restated Certificate of Incorporation of
Registrant, to be in effect upon the
completion of Registrant&#146;s initial public
offering of its common stock.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap">333-144758</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/31/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amended and Restated Bylaws of Registrant, to
be in effect upon the completion of
Registrant&#146;s initial public offering of its
common stock.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/31/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Registrant&#146;s common stock certificate.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/31/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fourth Amended and Restated Investor Rights
Agreement, dated as of May&nbsp;19, 2006, between
Registrant and certain Stockholders of
Registrant.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/20/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2001 Stock Option Plan.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/20/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Stock Option Agreement and Exercise
Notice and Restricted Stock Purchase
Agreement under the 2001 Stock Option Plan.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/20/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.7</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2007 Equity Incentive Plan.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11/13/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.8</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Notice of Stock Option Grant, Stock
Option Agreement and Stock Option Exercise
Agreement, Notice of Restricted Stock Award
Grant and Restricted Stock Purchase
Agreement, Notice of Restricted Stock Unit
Grant and Restricted Stock Unit Agreement,
Notice of Stock Bonus Award Grant and Stock
Bonus Agreement and Notice of Stock
Appreciation Right Grant and Stock
Appreciation Right Agreement under the 2007
Equity Incentive Plan.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11/9/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II - 2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Incorporated by Reference</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filed</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit Description</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Form</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>File No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Filing Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Herewith</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opinion of Fenwick &#038; West LLP.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Ernst &#038; Young LLP, Independent
Registered Public Accounting Firm.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Fenwick &#038; West LLP (contained in
Exhibit&nbsp;5.1).
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Power of Attorney (included on Page&nbsp;II-5 of
this Registration Statement).
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9. Undertakings.</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">A. The undersigned Registrant hereby undertakes:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this Registration Statement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective date
of the Registration Statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the information set forth
in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in
the volume of securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of a prospectus filed with the Commission
pursuant to Rule 424(b) under the Securities Act if, in the aggregate, the changes in volume
and price represent no more than a 20% change in the maximum aggregate offering price set
forth in the &#147;Calculation of Registration Fee&#148; table in the effective Registration Statement;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information with respect to the plan of distribution not
previously disclosed in the Registration Statement or any material change to such information
in the Registration Statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>provided</U>, <U>however</U>, that paragraphs (a)(1)(i) and (a)(1)(ii) above do not
apply if the information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to the Commission by the
Registrant pursuant to Section&nbsp;13 or Section 15(d) of the Exchange Act that are incorporated
by reference in the Registration Statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act, each
such post-effective amendment shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial <I>bona fide </I>offering thereof; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the
securities being registered that remain unsold at the termination of the offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">B. The undersigned Registrant hereby undertakes that, for the purpose of determining any
liability under the Securities Act, each filing of the Registrant&#146;s annual report pursuant to
Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an
employee benefit plan&#146;s annual report pursuant to Section 15(d) of the Exchange Act) that is
incorporated by reference in the Registration Statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial <I>bona fide </I>offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">C. Insofar as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of
the Commission such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred or paid by a
director, officer or controlling person of the Registrant in the successful defense
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II - 3<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">of any action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered hereby, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II - 4<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and
has duly caused this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of San Mateo, State of
California, on this 7th day of
December, 2007.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>SUCCESSFACTORS, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Lars Dalgaard
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Lars Dalgaard&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby
constitutes and appoints Lars Dalgaard, Bruce C. Felt, Jr. and Julian K. Ong, and each of them, as
his or her true and lawful attorneys-in-fact and agents with full power of substitution, for him or
her in any and all capacities, to sign any and all amendments (including post-effective amendments)
to this Registration Statement on Form S-8, and to file the same, with all exhibits thereto and
other documents in connection therewith, with the Securities and Exchange Commission, granting unto
said attorneys-in-fact and agents full power and authority to do and perform each and every act and
thing requisite and necessary to be done in connection therewith, as fully for all intents and
purposes as he or she might or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents, or his substitute, may lawfully do or cause to be done by virtue
hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act, this Registration Statement has been
signed by the following persons in the capacities and on the date indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">/s/ <FONT style="font-variant: SMALL-CAPS"> Lars Dalgaard  </FONT>
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Lars Dalgaard</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
President, Chief Executive Officer and
Director <br>(Principal Executive Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 7, 2007</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" valign="top">/s/   Bruce C. Felt, Jr.
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Bruce C. Felt, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Chief Financial Officer<br>
(Principal Accounting and Financial Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 7, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" valign="top">/s/   David N. Strohm
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
David N. Strohm</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Chairperson of the Board of Directors
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 4, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" valign="top">/s/   Douglas J. Burgum
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Douglas J. Burgum</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 4, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" valign="top">/s/   Eric C.W. Dunn
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Eric C.W. Dunn</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 4, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" valign="top">/s/   William E. McGlashan, Jr.
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
William E. McGlashan, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 5, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" valign="top">/s/   Elizabeth A. Nelson
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Elizabeth A. Nelson</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 4, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" valign="top">/s/   David G. Whorton
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
David G. Whorton</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">December 4, 2007</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->II - 5<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Incorporated by Reference</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filed</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit Description</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Form</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>File No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Filing Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Herewith</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Restated Certificate of Incorporation of
Registrant, to be in effect upon the
completion of Registrant&#146;s initial public
offering of its common stock.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap">333-144758</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/31/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amended and Restated Bylaws of Registrant, to
be in effect upon the completion of
Registrant&#146;s initial public offering of its
common stock.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/31/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Registrant&#146;s common stock certificate.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/31/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fourth Amended and Restated Investor Rights
Agreement, dated as of May&nbsp;19, 2006, between
Registrant and certain Stockholders of
Registrant.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/20/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2001 Stock Option Plan.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/20/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Stock Option Agreement and Exercise
Notice and Restricted Stock Purchase
Agreement under the 2001 Stock Option Plan.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/20/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.7</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2007 Equity Incentive Plan.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11/13/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.8</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Notice of Stock Option Grant, Stock
Option Agreement and Stock Option Exercise
Agreement, Notice of Restricted Stock Award
Grant and Restricted Stock Purchase
Agreement, Notice of Restricted Stock Unit
Grant and Restricted Stock Unit Agreement,
Notice of Stock Bonus Award Grant and Stock
Bonus Agreement and Notice of Stock
Appreciation Right Grant and Stock
Appreciation Right Agreement under the 2007
Equity Incentive Plan.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-144758
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11/9/07</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opinion of Fenwick &#038; West LLP.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Ernst &#038; Young LLP, Independent
Registered Public Accounting Firm.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Fenwick &#038; West LLP (contained in
Exhibit&nbsp;5.1).
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Power of Attorney (included on Page&nbsp;II-5 of
this Registration Statement).
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->II - 6<!-- /Folio -->
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sv8
Table of Contents
As
filed with the Securities and Exchange Commission on December 7, 2007
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-8
REGISTRATION STATEMENT
UNDER THE
SECURITIES ACT OF 1933
SuccessFactors, Inc.
(
Exact name of Registrant as specified in its charter
)
Delaware
94-3398453
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification Number)
SuccessFactors, Inc.
1500 Fashion Island Blvd., Suite 300
San Mateo, California 94404
(650) 645-2000
(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)
2001 Stock Option Plan
2007 Equity Incentive Plan
(Full title of the plans)
Lars Dalgaard
President and Chief Executive Officer
SuccessFactors, Inc.
1500 Fashion Island Blvd., Suite 300
San Mateo, California 94404
(650) 645-2000
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Please send copies of all communications to:
Julian K. Ong, Esq.
Vice President, General Counsel and Secretary
SuccessFactors, Inc.
1500 Fashion Island Blvd., Suite 300
San Mateo, California 94404
(650) 645-2000
Jeffrey R. Vetter, Esq.
William R. Schreiber, Esq.
Fenwick & West LLP
801 California Street
Mountain View, California 94041
(650) 988-8500
CALCULATION OF REGISTRATION FEE
Proposed Maximum
Proposed Maximum
Amount of
Title of Each Class of Securities
Amount to be
Offering Price
Aggregate Offering
Registration
to be Registered
Registered (1)
Per Unit
Price
Fee
Common Stock, $0.001 par value
6,114,320
(2)
$
13.15
(3)
$
80,403,308.00
(3)
$
2,468.39
Common Stock, $0.001 par value
12,525,359
(4)
$
4.88
(5)
$
61,123,751.92
(5)
$
1,876.50
Common Stock, $0.001 par value
1,104,031
(6)
$
13.15
(3)
$
14,518,007.65
(3)
$
445.71
Total
19,743,710
$
156,045,067.57
$
4,790.60
(1)
Pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the "
Securities Act
"),
this Registration Statement shall also cover any additional shares of the Registrant's common
stock that become issuable under the Registrant's 2001 Stock Option Plan or 2007 Equity
Incentive Plan by reason of any stock
dividend, stock split, recapitalization or other similar transaction effected without the
receipt of consideration that increases the number of the Registrant's outstanding shares of
common stock.
(2)
Represents shares available for grant or issuance, but not yet granted or subject to purchase
rights as of the date of this Registration Statement, under the Registrant's 2007 Equity
Incentive Plan.
(3)
Estimated solely for the purpose of calculating the registration fee in accordance with Rules
457(c) and (h) under the Securities Act and based upon the average of the high and low sales
prices reported on the NASDAQ Global Market on December 3, 2007.
(4)
Represents shares subject to stock options granted under the Registrant's 2001 Stock Option
Plan outstanding as of November 19, 2007.
(5)
Represents the weighted average exercise price (rounded to the nearest cent) for outstanding
stock options described in note 4 above pursuant to Rule 457(h) under the Securities Act. The
offering price is estimated solely for purposes of calculating the registration fee.
(6)
Represents shares of the Registrant's common stock being registered for resale that have been
previously issued to the selling stockholders named in this Registration Statement pursuant to
the exercise of stock options granted under the Registrant's 2001 Stock Option Plan.
Table of Contents
EXPLANATORY NOTE
Under
cover of this Registration Statement on Form S-8 (the "
Form S-8
") is a prospectus for common
stock of SuccessFactors, Inc. prepared in accordance with Part I of Form S-3 under the
Securities Act of 1933, as amended (the "
Securities Act
"). This prospectus has been prepared
pursuant to General Instruction C of Form S-8, in accordance with the requirements of Part I of
Form S-3, and may be used for reoffers and resales on a continuous or delayed basis in the
future of up to an aggregate of 1,104,031 shares of common stock that have been issued to
certain current and former employees and directors of SuccessFactors, Inc. prior to
the filing of this Form S-8 and that constitute "restricted securities" or "control securities"
within the meaning of the Form S-8.
This Form S-8 relates to (i) 6,114,320 shares of common stock to be issued in the future under
the SuccessFactors, Inc. 2007 Equity Incentive Plan,
(ii) 12,525,359 shares of common stock to
be issued in the future upon the exercise of outstanding stock options under the SuccessFactors,
Inc. 2001 Stock Option Plan (the "
2001 Plan
")
and (iii) the resale of 1,104,031 shares of common
stock previously issued pursuant to the exercise of stock options under the 2001 Plan to the
selling stockholders named in the resale prospectus included in this Form S-8 as described above.
The holders of 1,104,031 shares of common stock that are being
registered in this Form S-8 are subject to lock-up agreements or market
standoff provisions that prohibit them from offering for sale, selling, granting any stock
option for the sale of, transferring or otherwise disposing of such shares for a period of at
least 180 days as described in "Shares Eligible for Future Sale – Lock-Up Agreements" in
SuccessFactors, Inc.'s prospectus filed on November 20, 2007 with the Securities and Commission
(the "
SEC
" or the "
Commission
").
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Table of Contents
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1. Plan Information. (1)
Item 2. Registrant Information and Employee Plan Annual Information. (1)
(1)
Information required by this Item to be contained in the Section 10(a) prospectus is omitted
from this Form S-8 in accordance with Rule 428 under the Securities Act and the instructions
to Form S-8. In accordance with the rules and regulations of the Commission and the
instructions to Form S-8, such documents are not being filed with the Commission either as
part of this Form S-8 or as prospectuses or prospectus supplements pursuant to Rule 424 under
the Securities Act.
A prospectus prepared pursuant to General Instruction C of Form S-8, in accordance with the
requirements of Part I of Form S-3, which covers reoffers and resales on a continuous or delayed
basis of 1,104,031 shares of common stock previously issued to the selling stockholders named in
this Form S-8 pursuant to the exercise of stock options granted under the 2001 Plan is set forth
below.
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Table of Contents
SuccessFactors, Inc.
1,104,031 SHARES
COMMON STOCK, PAR VALUE $0.001
This
prospectus relates to 1,104,031 shares of common stock of SuccessFactors, Inc.
("
SuccessFactors
") that may be offered from time to time by certain selling stockholders named in
this prospectus (the "
Selling Stockholders
") for their own accounts. Each of the Selling
Stockholders acquired these shares of common stock pursuant to the exercise of stock options
granted under the SuccessFactors 2001 Stock Option Plan (the "
2001 Plan
").
The Selling Stockholders may sell the shares in the open market at prevailing market prices on
the NASDAQ Global Market, or in private transactions at negotiated prices. The Selling
Stockholders may sell the shares directly, or may sell them through underwriters, brokers or
dealers. SuccessFactors will not receive any of the proceeds from sales made under this
prospectus. SuccessFactors is paying the expenses incurred in registering these shares, but all
selling and other expenses incurred by each of the Selling Stockholders will be borne by that
Selling Stockholder.
Our common stock is traded on the NASDAQ Global Market under the symbol "SFSF."
See "Risk Factors" beginning on page I-7 to read about factors you should consider before
buying shares of our common stock.
Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense
.
The
date of this prospectus is December 7, 2007
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TABLE OF CONTENTS
Page
Special Note Regarding Forward-Looking
Information
I-5
The Company
I-6
Risk Factors
I-7
Use of Proceeds
I-21
Dilution
I-21
Selling Stockholders
I-22
Plan of Distribution
I-25
Legal Matters
I-27
Experts
I-27
Where You Can Find More Information
I-28
Incorporation of Documents by Reference
I-28
EXHIBIT 5.1
EXHIBIT 23.1
No dealer, salesperson or other person is authorized to give any information or to represent
anything not contained in this prospectus. You must not rely on any unauthorized information or
representations. This prospectus is an offer to sell only the shares offered hereby, and only under
circumstances and in jurisdictions where it is lawful to do so. The information contained in this
prospectus is current only as of its date.
Except where the context requires otherwise, in this prospectus "company," "SuccessFactors,"
"Registrant," "we," "us" and "our" refer to SuccessFactors, Inc., a Delaware corporation, and where
appropriate, its subsidiaries.
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Table of Contents
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus includes or incorporates by reference forward-looking statements. All
statements contained in this prospectus and the documents incorporated by reference other than
statements of historical facts, including statements regarding our future results of operations and
financial position, our business strategy and plans and our objectives for future operations, are
forward-looking statements. The words "believe," "may," "will," "estimate," "continue,"
"anticipate," "intend," "expect" and similar expressions are intended to identify forward-looking
statements. We have based these forward-looking statements largely on our current expectations and
projections about future events and financial trends that we believe may affect our financial
condition, results of operations, business strategy, short-term and long-term business operations
and objectives, and financial needs. These forward-looking statements are subject to a number of
risks, uncertainties and assumptions, including those described in "Risk Factors." In light of
these risks, uncertainties and assumptions, the future events and trends discussed in this
prospectus may not occur and actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
We cannot guarantee future results, levels of activity, performance or achievements. Except
as required under applicable law, we are under no duty to update any of these forward-looking
statements after the date of this prospectus to conform these statements to actual results or
revised expectations.
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Table of Contents
THE COMPANY
SuccessFactors is the leading provider of on-demand performance and talent management software
solutions that enable organizations to optimize the performance of their people to drive business
results. We deliver our application suite on demand to organizations of all sizes across all
industries and geographies. We strive to delight our customers by delivering innovative solutions,
a broad range of performance and talent management content, process expertise and best practices
knowledge gained from serving our large and varied customer base. We have over 1,300 customers
across over 60 industries, with more than two million end users in over 150 countries using our
application suite in 18 languages. Our customer base has organizations with as few as three and as
many as 85,000 end users, including American Airlines, Inc., American Electric Power Service
Corporation, AmerisourceBergen Corporation, Kimberly-Clark Corporation, Lowe's Companies, Inc.,
Quintiles Transnational Corp., Sutter Health, Textron Inc., T-Mobile USA, Inc., U.S. Postal
Inspection Service and Wachovia Corporation.
We were incorporated in Delaware on May 23, 2001 as Success Acquisition Corporation and have
been doing business as SuccessFactors, Inc. In April 2007, we changed our name to SuccessFactors,
Inc. Our principal executive offices are located at 1500 Fashion Island Blvd., Suite 300,
San Mateo, California 94404, and our telephone number is (650) 645-2000. Our website address is
www.successfactors.com. The information on, or that can be accessed through, our website is not
part of this prospectus.
"SuccessFactors" and the SuccessFactors logo are trademarks of SuccessFactors. Other service
marks, trademarks and tradenames referred to in this prospectus are the property of their
respective owners.
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Table of Contents
RISK FACTORS
Investing in our common stock involves a high degree of risk. You should consider carefully
the risks and uncertainties described below, together with all of the other information in this
prospectus before deciding to invest in shares of our common stock. If any of the following risks
actually occurs, our business, financial condition, results of operations and future prospects
could be materially and adversely affected. In that event, the market price of our common stock
could decline and you could lose part or even all of your investment.
Risk Related to Our Business and Industry
We have a history of losses, we expect to continue to incur losses and we may not achieve or
sustain profitability in the future.
We have incurred significant losses in each fiscal period since our inception in 2001. We
incurred net losses of $5.3 million in 2004, $20.8 million in 2005, $32.0 million in 2006 and
$49.2 million in the nine months ended September 30, 2007. At September 30, 2007, we had an
accumulated deficit of $115.0 million. These losses and accumulated deficit were due to the
substantial investments we made to grow our business and acquire customers. For example, our sales
and marketing expenses were 127% of revenue in 2005, 99% in 2006 and 112% in the nine months ended
September 30, 2007. We expect our operating expenses to increase in the future due to our expected
increased sales and marketing expenses, operations costs and general and administrative costs and
therefore we expect our losses to continue to increase for the foreseeable future. Furthermore, to
the extent we are successful in increasing our customer base, we will also incur increased losses
because costs associated with generating customer agreements are generally incurred up front, while
revenue is generally recognized ratably over the term of the agreement. You should not consider our
recent revenue growth as indicative of our future performance. Accordingly, we cannot assure you
that we will achieve profitability in the future or that, if we do become profitable, we will
sustain profitability.
Our independent registered public accounting firm identified numerous material audit
adjustments, all of which we subsequently recorded, and noted certain material weaknesses in our
internal control over financial reporting. Failure to achieve and maintain effective internal
control over financial reporting could result in our failure to accurately report our financial
results.
During the audit of our consolidated financial statements for the three-year period ended
December 31, 2005, our independent registered public accounting firm noted in its report to our
audit committee that we had several material weaknesses in our internal controls over financial
reporting. In addition to these material weaknesses, our independent registered public accounting
firm also commented on our lack of accounting policies and process narratives and our lack of
segregation of duties.
In connection with the audit of our consolidated financial statements, our independent
registered public accounting firm noted a material weakness in its report to our audit committee
relating to an insufficient number of permanent and adequately-experienced accounting staff. In
addition to this material weakness, our independent registered public accounting firm noted two
significant deficiencies in our internal control over financial reporting related to our lack of
certain formal accounting policies and process narratives and our lack of segregation of duties.
This material weakness resulted in a number of audit adjustments to our consolidated financial
statements for 2006 that were noted during the course of the audit.
We are in the process of taking steps intended to remedy these material weaknesses and
significant deficiencies. Since these material weaknesses and significant deficiencies relate in
large part to inadequate staffing, we are addressing them through hiring additional accounting and
finance personnel. We will not be able to fully address this material weakness and these
significant deficiencies until these steps have been completed. If we fail to further increase and
maintain the number and expertise of our staff for our accounting and finance functions and to
improve and maintain internal control over financial reporting adequate to meet the demands that
will be placed upon us as a public company, including the requirements of the Sarbanes-Oxley Act of
2002, or the Sarbanes-Oxley Act, we may be unable to report our financial results accurately and
prevent fraud.
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Table of Contents
Furthermore, the rules of the Commission, require that, as a publicly-traded company, we file
periodic reports containing our financial statements within a specified time following the
completion of quarterly and annual periods. In addition, commencing with our fiscal year ending
December 31, 2008, we must perform system and process evaluation and testing of our internal
control over financial reporting to allow management and our independent registered public
accounting firm to report on the effectiveness of our internal control over financial reporting, as
required by Section 404 of the Sarbanes-Oxley Act. Our compliance with Section 404 of the
Sarbanes-Oxley Act will require that we incur substantial accounting expense and expend significant
management efforts. Prior to our initial public offering on November 19, 2007, we have never been
required to test our internal controls within a specified period, and, as a result, we may
experience difficulty in meeting these reporting requirements in a timely manner, particularly if a
material weakness or significant deficiencies persist. If we are not able to comply with the SEC
reporting requirements or the requirements of Section 404 of the Sarbanes-Oxley Act in a timely
manner, or if we or our independent registered public accounting firm continues to note or identify
deficiencies in our internal control over financial reporting that are deemed to be material
weaknesses, the market price of our stock could decline and we could be subject to sanctions or
investigations by the stock exchange upon which our common stock is listed, the SEC or other
regulatory authorities, which would require additional financial and management resources.
Even if we are able to report our financial statements accurately and timely, if we do not
make all the necessary improvements to address the material weakness, continued disclosure of a
material weakness will be required in future filings with the SEC, which could cause our reputation
to be harmed and our stock price to decline.
Because we recognize revenue from our customers over the term of their agreements, downturns
or upturns in sales may not be immediately reflected in our operating results.
We recognize revenue over the terms of our customer agreements, which typically range from one
to three years. As a result, most of our quarterly revenue results from agreements entered into
during previous quarters. Consequently, a shortfall in demand for our application suite in any
quarter may not adversely affect our revenue for that quarter, but will negatively affect revenue
in future quarters. In particular, if such a shortfall were to occur in our fourth quarter, it may
be more difficult for us to increase our customer sales to recover from such a shortfall as we have
historically entered into a significant portion of our customer agreements during the fourth
quarter. In addition, we may be unable to adjust our cost structure to reflect reduced revenue.
Accordingly, the effect of significant downturns in sales of our application suite may not be fully
reflected in our results of operations until future periods. Our subscription model also makes it
difficult for us to rapidly increase our revenue through additional sales in any period, as revenue
from new customers must be recognized over the applicable subscription term.
Because we recognize revenue from our customers over the term of their agreements but incur
most costs associated with generating customer agreements upfront, rapid growth in our customer
base will result in increased losses.
Because the expenses associated with generating customer agreements are generally incurred up
front, but the resulting revenue is recognized over the life of the customer agreement, increased
growth in the number of customers will result in our recognition of more costs than revenue in the
earlier periods of the terms of our agreements even though the customer is expected to be
profitable for us over the term of the agreement.
Our business depends substantially on customers renewing their agreements and purchasing
additional modules or users from us. Any decline in our customer renewals would harm our future
operating results.
In order for us to improve our operating results, it is important that our customers renew
their agreements with us when the initial contract term expires and also purchase additional
modules or additional users. Our customers have no obligation to renew their subscriptions after
the initial subscription period, and we cannot assure you that customers will renew subscriptions
at the same or higher level of service, if at all. Although our renewal rates have been high
historically, some of our customers have elected not to renew their agreements with us. Moreover,
under some circumstances, some of our customers have the right to cancel their agreements prior to
the expiration of the term. Our customers' renewal rates may decline or fluctuate as a result of a
number of factors, including their satisfaction or dissatisfaction with our application suite,
pricing, the prices of competing products or services,
I - 8
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mergers and acquisitions affecting our customer base, or reductions in our customers' spending
levels. If our customers do not renew their subscriptions, renew on less favorable terms or fail to
purchase additional modules or users, our revenue may decline, and we may not realize significantly
improved operating results from our customer base.
We have limited experience with respect to our pricing model. If the prices we charge for our
application suite are unacceptable to our customers, our revenue and operating results may be
harmed.
We have limited experience with respect to determining the appropriate prices for our
application suite. As the market for our solution matures, or as new competitors introduce new
products or services that compete with ours, we may be unable to renew our agreements with existing
customers or attract new customers at the same price or based on the same pricing model as we have
used historically. In addition, we have only recently commercially introduced certain of our
modules. As a result, in the future it is possible that competitive dynamics in our market may
require us to change our pricing model or reduce our prices, which could have a material adverse
effect on our revenue, gross margin and other operating results.
We have derived a substantial majority of our subscription revenue from sales of our
performance management and goal management modules. If these modules are not widely accepted by new
customers, our operating results will be harmed.
We have derived a substantial majority of our historical revenue from sales of our
Performance
Management
and
Goal Management
modules. If these modules do not remain competitive, or if we
experience pricing pressure or reduced demand for these modules, our future revenue could be
negatively affected, which would harm our future operating results.
We have experienced rapid growth in recent periods. If we fail to manage our growth
effectively, we may be unable to execute our business plan, maintain high levels of service or
adequately address competitive challenges.
We have recently experienced a period of rapid growth in our headcount and operations. For
example, we grew from 188 employees at December 31, 2005 to 697 employees at September 30, 2007. We
have also increased the size of our customer base from 341 customers at December 31, 2005 to over
1,400 customers at September 30, 2007. We anticipate that we will further expand our operations.
This growth has placed, and future growth will place, a significant strain on our management,
administrative, operational and financial infrastructure. Our success will depend in part on our
ability to manage this growth effectively. To manage the expected growth of our operations and
personnel, we will need to continue to improve our operational, financial and management controls
and our reporting systems and procedures. Failure to effectively manage growth could result in
difficulty in implementing customers, declines in quality or customer satisfaction, increases in
costs, difficulties in introducing new features or other operational difficulties, and any of these
difficulties could adversely impact our business performance and results of operations.
Failure to adequately expand our direct sales force and develop and expand our indirect sales
channel will impede our growth.
We will need to continue to expand our sales and marketing infrastructure in order to grow our
customer base and our business. We plan to continue to expand our direct sales force and engage
additional third-party channel partners, both domestically and internationally. Identifying and
recruiting these people and entities and training them in the use of our application suite require
significant time, expense and attention. This expansion will require us to invest significant
financial and other resources. We typically have no long-term agreements or minimum purchase
commitments with any of our channel partners, and our agreements with these channel partners do not
prohibit them from offering products or services that compete with ours. Our business will be
seriously harmed if our efforts to expand our direct and indirect sales channels do not generate a
corresponding significant increase in revenue. In particular, if we are unable to hire, develop and
retain talented sales personnel or if our new direct sales personnel are unable to achieve desired
productivity levels in a reasonable period of time, we may not be able to significantly increase
our revenue and grow our business.
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If our security measures are breached or unauthorized access to customer data is otherwise
obtained, our application suite may be perceived as not being secure, customers may curtail or stop
using our application suite, and we may incur significant liabilities.
Our operations involve the storage and transmission of our customers' confidential
information, and security breaches could expose us to a risk of loss of this information,
litigation, indemnity obligations and other liability. If our security measures are breached as a
result of third-party action, employee error, malfeasance or otherwise, and, as a result, someone
obtains unauthorized access to our customers' data, including personally identifiable information
regarding users, our reputation will be damaged, our business may suffer and we could incur
significant liability. Because techniques used to obtain unauthorized access or to sabotage systems
change frequently and generally are not recognized until launched against a target, we may be
unable to anticipate these techniques or to implement adequate preventative measures. If an actual
or perceived breach of our security occurs, the market perception of the effectiveness of our
security measures could be harmed and we could lose potential sales and existing customers.
Because our application suite collects, stores and reports personal information of job
applicants and employees, privacy concerns could result in liability to us or inhibit sales of our
application suite.
Many federal, state and foreign government bodies and agencies have adopted or are considering
adopting laws and regulations regarding the collection, use and disclosure of personal information.
Because many of the features of our application suite collect, store and report on personal
information, any inability to adequately address privacy concerns, even if unfounded, or comply
with applicable privacy laws, regulations and policies, could result in liability to us, damage our
reputation, inhibit sales and harm our business.
Furthermore, the costs of compliance with, and other burdens imposed by, such laws,
regulations and policies that are applicable to the businesses of our customers may limit the use
and adoption of our application suite and reduce overall demand for it. Privacy concerns, whether
or not valid, may inhibit market adoption of our application suite in certain industries.
The market for our application suite depends on widespread adoption of strategic HR software.
Widespread adoption of our solution depends on the widespread adoption of strategic
HR software by organizations. Because we believe that most organizations have not adopted strategic
HR functions, it is uncertain whether they will purchase software or on-demand applications for
this function. Accordingly, we cannot assure you that an on-demand model for strategic HR software
will achieve and sustain the high level of market acceptance that is critical for the success of
our business.
The market for on-demand applications is at an early stage of development, and if it does not
develop or develops more slowly than we expect, our business will be harmed.
The market for on-demand applications is at an early stage of development, and these
applications may not achieve and sustain high levels of demand and market acceptance. Our success
will depend on the willingness of organizations to increase their use of on-demand applications.
Many companies have invested substantial personnel and financial resources to integrate traditional
enterprise software into their businesses, and therefore may be reluctant or unwilling to migrate
to on-demand applications. We have encountered customers in the past that have been unwilling to
subscribe to our application suite because they could not install it on their premises. Other
factors that may affect the market acceptance of on-demand applications include:
•
perceived security capabilities and reliability;
•
perceived concerns about ability to scale operations for large enterprise customers;
•
concerns with entrusting a third party to store and manage critical employee data; and
•
the level of configurability of on-demand applications.
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If organizations do not perceive the benefits of on-demand applications, then the market for
these applications may not develop further, or it may develop more slowly than we expect, either of
which would adversely affect our business.
The market in which we participate is intensely competitive, and if we do not compete
effectively, our operating results could be harmed.
The market for human resources applications is fragmented, rapidly evolving and highly
competitive, with relatively low barriers to entry in some segments. Many of our competitors and
potential competitors are larger and have greater name recognition, much longer operating
histories, larger marketing budgets and significantly greater resources than we do, and with the
introduction of new technologies and market entrants, we expect competition to intensify in the
future. If we fail to compete effectively, our business will be harmed. Some of our principal
competitors offer their products or services at a lower price, which has resulted in pricing
pressures. If we are unable to achieve our target pricing levels, our operating results would be
negatively impacted. In addition, pricing pressures and increased competition generally could
result in reduced sales, reduced margins, losses or the failure of our application suite to achieve
or maintain more widespread market acceptance, any of which could harm our business.
We face competition from paper-based processes and desktop software tools. We also face
competition from custom-built software that is designed to support the needs of a single
organization, and from third-party human resources application providers. These software vendors
include, without limitation, Authoria, Inc., Cornerstone OnDemand, Inc., Halogen Software Inc.,
Kenexa Corporation, Oracle Corporation, Plateau Systems, Ltd., Salary.com, Inc., SAP AG, Softscape,
Inc., StepStone Solutions GmbH, SumTotal Systems Inc., Taleo Corporation and Vurv Technology
(formerly Recruitmax).
Many of our competitors are able to devote greater resources to the development, promotion and
sale of their products and services. In addition, many of our competitors have established
marketing relationships, access to larger customer bases and major distribution agreements with
consultants, system integrators and resellers. Moreover, many software vendors could bundle human
resources products or offer them at a low price as part of a larger product sale. In addition, some
competitors may offer software that addresses one or a limited number of strategic human resource
functions at lower prices or with greater depth than our application suite. As a result, our
competitors might be able to respond more quickly and effectively than we can to new or changing
opportunities, technologies, standards or customer requirements. Further, some potential customers,
particularly large enterprises, may elect to develop their own internal solutions. For all of these
reasons, we may not be able to compete successfully against our current and future competitors.
Our quarterly results can fluctuate and, if we fail to meet the expectations of analysts or
investors, our stock price and the value of your investment could decline substantially.
Our quarterly financial results may fluctuate as a result of a variety of factors, many of
which are outside of our control. If our quarterly financial results fall below the expectations of
investors or any securities analysts who follow our stock, the price of our common stock could
decline substantially. Fluctuations in our quarterly financial results may be caused by a number of
factors, including, but not limited to, those listed below:
•
our ability to attract new customers;
•
customer renewal rates;
•
the extent to which customers increase or decrease the number of modules or users upon
any renewal of their agreements;
•
the level of new customers as compared to renewal customers in a particular period;
•
the addition or loss of large customers, including through acquisitions or
consolidations;
•
the mix of customers between small, mid-sized and enterprise customers;
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•
changes in our pricing policies or those of our competitors;
•
seasonal variations in the demand for our application suite, which has historically been
highest in the fourth quarter of a year;
•
the amount and timing of operating expenses, particularly sales and marketing, related to
the maintenance and expansion of our business, operations and infrastructure;
•
the timing and success of new product and service introductions by us or our competitors
or any other change in the competitive dynamics of our industry, including consolidation
among competitors, customers or strategic partners;
•
network outages or security breaches;
•
the timing of expenses related to the development or acquisition of technologies or
businesses and potential future charges for impairment of goodwill from acquired
companies; and
•
general economic, industry and market conditions.
We believe that our quarterly results of operations, including the levels of our revenue and
changes in deferred revenue, may vary significantly in the future and that period-to-period
comparisons of our operating results may not be meaningful. You should not rely on the results of
any one quarter as an indication of future performance.
The market for our application suite among large customers may be limited if they require
customized features or functions that we do not intend to provide.
Prospective customers, especially large enterprise customers, may require customized features
and functions unique to their business processes. If prospective customers require customized
features or functions that we do not offer, then the market for our application suite will be more
limited among these types of customers and our business could suffer.
We depend on our management team, particularly our Chief Executive Officer and our development
personnel, and the loss of one or more key employees or groups could harm our business and prevent
us from implementing our business plan in a timely manner.
Our success depends largely upon the continued services of our executive officers,
particularly our Chief Executive Officer, and other key employees. From time to time, there may be
changes in our executive management team resulting from the hiring or departure of executives,
which could disrupt our business. We are also substantially dependent on the continued service of
our existing development personnel because of the complexity of our application suite and
technologies.
We do not have employment agreements with any of our personnel that require these personnel to
continue to work for us for any specified period and, therefore, they could terminate their
employment with us at any time. We do not maintain key person life insurance policies on any of our
employees. The loss of one or more of our key employees or groups could seriously harm our
business.
If we cannot maintain our corporate culture as we grow, we could lose the innovation,
teamwork, passion and focus on execution that we believe contribute to our success, and our
business may be harmed.
We believe that a critical contributor to our success has been our corporate culture, which we
believe fosters innovation, teamwork, passion for customers and focus on execution. As we grow and
change, we may find it difficult to maintain these important aspects of our corporate culture. Any
failure to preserve our culture could also negatively affect our ability to retain and recruit
personnel, and otherwise adversely affect our future success.
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Our growth depends in part on the success of our strategic relationships with third parties.
We anticipate that we will continue to depend on various third-party relationships in order to
grow our business. In addition to growing our indirect sales channels, we intend to pursue
additional relationships with other third parties, such as technology and content providers and
implementation partners. Identifying partners, negotiating and documenting relationships with them
require significant time and resources as does integrating third-party content and technology. Our
agreements with technology and content providers are typically non-exclusive and do not prohibit
them from working with our competitors or from offering competing services. Our competitors may be
effective in providing incentives to third parties to favor their products or services or to
prevent or reduce subscriptions to our application suite.
If we are unsuccessful in establishing or maintaining our relationships with these third
parties, our ability to compete in the marketplace or to grow our revenue could be impaired and our
operating results would suffer. Even if we are successful, we cannot assure you that these
relationships will result in increased customer usage of our application suite or revenue.
We rely on a small number of third-party service providers to host and deliver our application
suite, and any interruptions or delays in services from these third parties could impair the
delivery of our application suite and harm our business.
We currently host our application suite from three data centers — one located in the United
States and two in Europe. We do not control the operation of any of these facilities, and we do not
have a backup facility in case one of these facilities ceases to operate. These facilities are
vulnerable to damage or interruption from natural disasters, fires, power loss, telecommunications
failures and similar events. They are also subject to break-ins, computer viruses, sabotage,
intentional acts of vandalism and other misconduct. The occurrence of a natural disaster or an act
of terrorism, a decision to close the facilities without adequate notice or other unanticipated
problems could result in lengthy interruptions, which would have a serious adverse impact on our
business. Additionally, our data center agreements are of limited duration and are subject to early
termination rights in certain circumstances, and the providers of our data centers have no
obligation to renew their agreements with us on commercially reasonable terms, or at all.
We also depend on access to the Internet through third-party bandwidth providers to operate
our business. If we lose the services of one or more of our bandwidth providers for any reason, we
could experience disruption in delivering our application suite or we could be required to retain
the services of a replacement bandwidth provider.
Our operations also rely heavily on the availability of electricity, which also comes from
third-party providers. If we or the third-party data center facilities that we use to deliver our
services were to experience a major power outage or if the cost of electricity were to increase
significantly, our operations could be harmed. If we or our third-party data centers were to
experience a major power outage, we would have to rely on back-up generators, which might not work
properly or might not provide an adequate supply during a major power outage. Such a power outage
could result in a disruption of our business.
If our application suite fails to perform properly, our reputation will be harmed, our market
share would decline and we could be subject to liability claims.
The software used in our application suite is inherently complex and may contain material
defects or errors. Any defects in product functionality or that cause interruptions in the
availability of our application suite could result in:
•
lost or delayed market acceptance and sales;
•
breach of warranty claims;
•
sales credits or refunds to our customers;
•
loss of customers;
•
diversion of development and customer service resources; and
•
injury to our reputation.
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The costs incurred in correcting any material defects or errors might be substantial and could
adversely affect our operating results.
Because of the large amount of data that we collect and manage, it is possible that hardware
failures or errors in our systems could result in data loss or corruption, or cause the information
that we collect to be incomplete or contain inaccuracies that our customers regard as significant.
Furthermore, the availability of our application suite could be interrupted by a number of factors,
including customers' inability to access the Internet, the failure of our network or software
systems, security breaches or variability in user traffic for our application suite. We may be
required to issue credits or refunds or indemnify or otherwise be liable to our customers for
damages they may incur resulting from certain of these events. In addition to potential liability,
if we experience interruptions in the availability of our application suite, our reputation could
be harmed and we could lose customers.
Our errors and omissions insurance may be inadequate or may not be available in the future on
acceptable terms, or at all. In addition, our policy may not cover any claim against us for loss of
data or other indirect or consequential damages and defending a suit, regardless of its merit,
could be costly and divert management's attention.
We rely on third-party computer hardware and software that may be difficult to replace or
which could cause errors or failures of our service.
We rely on computer hardware, purchased or leased, and software licensed from third parties in
order to deliver our application suite. This hardware and software may not continue to be available
on commercially reasonable terms, or at all. Any loss of the right to use any of this hardware or
software could result in delays in our ability to provide our application suite until equivalent
technology is either developed by us or, if available, identified, obtained and integrated, which
could harm our business. In addition, errors or defects in third-party hardware or software used in
our application suite could result in errors or a failure of our application suite, which could
harm our business.
If we are not able to develop enhancements and new features that achieve market acceptance or
that keep pace with technological developments, our business will be harmed.
Our ability to attract new customers and increase revenue from existing customers will depend
in large part on our ability to enhance and improve our existing application suite and to introduce
new features. The success of any enhancement or new product depends on several factors, including
timely completion, introduction and market acceptance. Any new feature or module that we develop or
acquire may not be introduced in a timely or cost-effective manner and may not achieve the broad
market acceptance necessary to generate significant revenue. If we are unable to successfully
develop or acquire new features or modules or to enhance our existing application suite to meet
customer requirements, our business and operating results will be adversely affected.
Because we designed our application suite to operate on a variety of network, hardware and
software platforms using standard Internet tools and protocols, we will need to continuously modify
and enhance our application suite to keep pace with changes in Internet-related hardware, software,
communication, browser and database technologies. If we are unable to respond in a timely manner to
these rapid technological developments in a cost-effective manner, our application suite may become
less marketable and less competitive or obsolete and our operating results may be negatively
impacted.
If we fail to develop widespread brand awareness cost-effectively, our business may suffer.
We believe that developing and maintaining widespread awareness of our brand in a
cost-effective manner is critical to achieving widespread acceptance of our application suite and
attracting new customers. Brand promotion activities may not generate customer awareness or
increase revenue, and even if they do, any increase in revenue may not offset the expenses we incur
in building our brand. If we fail to successfully promote and maintain our brand, or incur
substantial expenses, we may fail to attract or retain customers necessary to realize a sufficient
return on our brand-building efforts, or to achieve the widespread brand awareness that is critical
for broad customer adoption of our application suite.
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Because our long-term success depends, in part, on our ability to expand the sales of our
application suite to customers located outside of the United States, our business will be
susceptible to risks associated with international operations.
A key element of our growth strategy is to expand our international operations and develop a
worldwide customer base. To date, we have not realized a material portion of our revenue from
customers outside the United States. Operating in international markets requires significant
resources and management attention and will subject us to regulatory, economic and political risks
that are different from those in the United States. Because of our limited experience with
international operations, we cannot assure you that our international expansion efforts will be
successful. In addition, we will face risks in doing business internationally that could adversely
affect our business, including:
•
our ability to comply with differing technical and certification requirements outside the
United States;
•
difficulties and costs associated with staffing and managing foreign operations;
•
greater difficulty collecting accounts receivable and longer payment cycles;
•
unexpected changes in regulatory requirements;
•
the need to adapt our application suite for specific countries;
•
difficulties in understanding and complying with local laws, regulations and customs in
foreign jurisdictions;
•
tariffs, export controls and other non-tariff barriers such as quotas and local content
rules;
•
more limited protection for intellectual property rights in some countries;
•
adverse tax consequences;
•
fluctuations in currency exchange rates;
•
restrictions on the transfer of funds; and
•
new and different sources of competition.
Our failure to manage any of these risks successfully could harm our existing and future
international operations and seriously impair our overall business.
Because competition for our target employees is intense, we may not be able to attract and
retain the quality employees we need to support our planned growth.
Our future success will depend, to a significant extent, on our ability to attract and retain
high quality personnel. Competition for qualified management, technical and other personnel is
intense, and we may not be successful in attracting and retaining such personnel. If we fail to
attract and retain qualified employees, our ability to grow our business could be harmed.
Any failure to protect our intellectual property rights could impair our ability to protect
our proprietary technology and our brand.
Our success and ability to compete depend in part upon our intellectual property. We primarily
rely on patent, copyright, trade secret and trademark laws, trade secret protection and
confidentiality or license agreements with our employees, customers, partners and others to protect
our intellectual property rights. However, the steps we take to protect our intellectual property
rights may be inadequate. We currently have only one issued patent.
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In order to protect our intellectual property rights, we may be required to spend significant
resources to monitor and protect these rights. Litigation brought to protect and enforce our
intellectual property rights could be costly, time-consuming and distracting to management and
could result in the impairment or loss of portions of our intellectual property. Furthermore, our
efforts to enforce our intellectual property rights may be met with defenses, counterclaims and
countersuits attacking the validity and enforceability of our intellectual property rights. Our
failure to secure, protect and enforce our intellectual property rights could seriously harm our
brand and adversely impact our business.
We may be sued by third parties for alleged infringement of their proprietary rights.
There is considerable patent and other intellectual property development activity in our
industry. Our success depends upon our not infringing upon the intellectual property rights of
others. Our competitors, as well as a number of other entities and individuals, may own or claim to
own intellectual property relating to our industry. From time to time, third parties may claim that
we are infringing upon their intellectual property rights, and we may be found to be infringing
upon such rights. In the future, we may receive claims that our application suite and underlying
technology infringe or violate the claimant's intellectual property rights. However, we may be
unaware of the intellectual property rights of others that may cover some or all of our technology
or application suite. Any claims or litigation could cause us to incur significant expenses and, if
successfully asserted against us, could require that we pay substantial damages or ongoing royalty
payments, prevent us from offering our services, or require that we comply with other unfavorable
terms. We may also be obligated to indemnify our customers or business partners in connection with
any such litigation and to obtain licenses, modify products, or refund fees, which could further
exhaust our resources. In addition, we may pay substantial settlement costs which could include
royalty payments in connection with any claim or litigation, whether or not successfully asserted
against us. Even if we were to prevail, any litigation regarding our intellectual property could be
costly and time-consuming and divert the attention of our management and key personnel from our
business operations.
Our use of open source and third-party technology could impose limitations on our ability to
commercialize our application suite.
We use open source software in our application suite. Although we monitor our use of open
source software closely, the terms of many open source licenses have not been interpreted by United
States courts, and there is a risk that such licenses could be construed in a manner that imposes
unanticipated conditions or restrictions on our ability to market our application suite. In such
event, we could be required to seek licenses from third parties in order to continue offering our
application suite, to re-engineer our technology or to discontinue offering our application suite
in the event re-engineering cannot be accomplished on a timely basis, any of which could adversely
affect our business, operating results and financial condition. We also incorporate certain
third-party technologies into our application suite and may desire to incorporate additional
third-party technologies in the future. Licenses to new third-party technology may not be available
to us on commercially reasonable terms, or at all.
Changes in laws and/or regulations related to the Internet or changes in the Internet
infrastructure itself may cause our business to suffer.
The future success of our business depends upon the continued use of the Internet as a primary
medium for commerce, communication and business applications. Federal, state or foreign government
bodies or agencies have in the past adopted, and may in the future adopt, laws or regulations
affecting data privacy and the use of the Internet as a commercial medium. In addition, government
agencies or private organizations may begin to impose taxes, fees or other charges for accessing
the Internet. These laws or charges could limit the growth of Internet-related commerce or
communications generally, result in a decline in the use of the Internet and the viability of
Internet-based applications such as ours and reduce the demand for our application suite.
The Internet has experienced, and is expected to continue to experience, significant user and
traffic growth, which has, at times, caused user frustration with slow access and download times.
If the Internet infrastructure is unable to support the demands placed on it, or if hosting
capacity becomes scarce, our business growth may be adversely affected. If we fail to meet service
level commitments, customers may be entitled to credits, refunds to the extent of cash paid for
future services, or termination.
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We may acquire other companies or technologies, which could divert our management's attention,
result in additional dilution to our stockholders and otherwise disrupt our operations and harm our
operating results.
We may in the future seek to acquire or invest in businesses, products or technologies that we
believe could complement or expand our application suite, enhance our technical capabilities or
otherwise offer growth opportunities. The pursuit of potential acquisitions may divert the
attention of management and cause us to incur various expenses in identifying, investigating and
pursuing suitable acquisitions, whether or not they are consummated.
In addition, we do not have any experience in acquiring other businesses. If we acquire
additional businesses, we may not be able to integrate the acquired personnel, operations and
technologies successfully, or effectively manage the combined business following the acquisition.
We also may not achieve the anticipated benefits from the acquired business due to a number of
factors, including:
•
unanticipated costs or liabilities associated with the acquisition;
•
incurrence of acquisition-related costs;
•
diversion of management's attention from other business concerns;
•
harm to our existing business relationships with business partners and customers as a
result of the acquisition;
•
the potential loss of key employees;
•
use of resources that are needed in other parts of our business; and
•
use of substantial portions of our available cash to consummate the acquisition.
In addition, a significant portion of the purchase price of companies we acquire may be
allocated to acquired goodwill and other intangible assets, which must be assessed for impairment
at least annually. In the future, if our acquisitions do not yield expected returns, we may be
required to take charges to our operating results based on this impairment assessment process,
which could harm our results of operations.
Acquisitions could also result in dilutive issuances of equity securities or the incurrence of
debt, which could adversely affect our operating results. In addition, if an acquired business
fails to meet our expectations, our operating results, business and financial condition may suffer.
We might require additional capital to support business growth, and this capital might not be
available on acceptable terms, or at all.
We intend to continue to make investments to support our business growth and may require
additional funds to respond to business challenges, including the need to expand sales and
marketing activities, develop new features and modules to enhance our existing application suite,
to enhance our operating infrastructure and to acquire complementary businesses and technologies.
Accordingly, we may need to engage in equity or debt financings to secure additional funds. If we
raise additional funds through further issuances of equity or convertible debt securities, our
existing stockholders could suffer significant dilution, and any new equity securities we issue
could have rights, preferences and privileges superior to those of holders of our common stock. Any
debt financing secured by us in the future could involve restrictive covenants relating to our
capital raising activities and other financial and operational matters, which might make it more
difficult for us to obtain additional capital and to pursue business opportunities, including
potential acquisitions. In addition, we may not be able to obtain additional financing on terms
favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms
satisfactory to us, when we require it, our ability to continue to support our business growth and
to respond to business challenges could be significantly limited.
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Our business is subject to changing regulations regarding corporate governance and public
disclosure that will increase both our costs and the risk of noncompliance.
As a public company, we will incur significant legal, accounting and other expenses that we
did not incur as a private company. In addition, the Sarbanes-Oxley Act, and rules subsequently
implemented by the SEC and The NASDAQ Stock Market, have imposed a variety of new requirements and
restrictions on public companies, including requiring changes in corporate governance practices.
Our management and other personnel will need to devote a substantial amount of time to these new
compliance initiatives. Moreover, these rules and regulations will increase our legal and financial
compliance costs and will make some activities more time-consuming and costly.
The increased costs associated with operating as a public company will increase our net
losses, and may cause us to reduce costs in other areas of our business or increase the prices of
our application suite to offset the effect of such increased costs. Additionally, if these
requirements divert our management's attention from other business concerns, they could have a
material adverse effect on our business, financial condition and results of operations.
Changes in financial accounting standards or practices may cause adverse, unexpected financial
reporting fluctuations and affect our reported results of operations.
A change in accounting standards or practices can have a significant effect on our reported
results and may even affect our reporting of transactions completed before the change is effective.
New accounting pronouncements and varying interpretations of accounting pronouncements have
occurred and may occur in the future. Changes to existing rules or the questioning of current
practices may adversely affect our reported financial results or the way we conduct our business.
Risks Related to Ownership of Our Common Stock
There was no market for our common stock prior to our initial public offering, our stock price
may be volatile or may decline regardless of our operating performance, and you may not be able to
resell your shares at or above the initial public offering price.
There was no public market for our common stock prior to our initial public offering on
November 19, 2007. An active or liquid market in our common stock may not develop or, if it does
develop, may not be sustainable. The trading prices of the securities of technology companies have
been and are expected to continue to be highly volatile. The market price of our common stock may
fluctuate significantly in response to numerous factors, many of which are beyond our control,
including:
•
price and volume fluctuations in the overall stock market;
•
changes in operating performance and stock market valuations of other technology
companies generally, or those in our industry in particular;
•
actual or anticipated fluctuations in our operating results;
•
the financial projections we may provide to the public, any changes in these projections
or our failure to meet these projections;
•
changes in financial estimates by any securities analysts who follow our company, our
failure to meet these estimates, or failure of those analysts to initiate or maintain
coverage of our stock;
•
rating downgrades by any securities analysts who follow our company;
•
announcements by us or our competitors of significant technical innovations,
acquisitions, strategic partnerships, joint ventures or capital commitments;
•
the public's response to our press releases or other public announcements, including our
filings with the SEC;
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•
market conditions or trends in our industry or the economy as a whole;
•
the loss of key personnel;
•
lawsuits threatened or filed against us;
•
future sales of our common stock by our executive officers, directors and significant
stockholders; and
•
other events or factors, including those resulting from war, incidents of terrorism or
responses to these events.
In addition, the stock markets have experienced significant price and volume fluctuations that
have affected and continue to affect the market prices of equity securities of many technology
companies. Stock prices of many technology companies have fluctuated in a manner unrelated or
disproportionate to the operating performance of those companies. In the past, stockholders have
instituted securities class action litigation following a decline in stock price. If we were to
become involved in securities litigation, it could subject us to substantial costs, divert
resources and the attention of management from our business and adversely affect our business,
operating results and financial condition.
A significant portion of our total outstanding shares may be sold into the market in the near
future. If there are substantial sales of shares of our common stock, the price of our common stock
could decline.
The price of our common stock could decline if there are substantial sales of our common stock
or if there is a large number of shares of our common stock available for sale. Based on the number
of shares outstanding as of September 30, 2007, we will have 49,743,807 outstanding shares of our
common stock. This includes the shares that we sold in our initial public offering on November 19,
2007, which may be resold in the public market immediately. The remaining 38,953,807 shares,
or 78%, of our outstanding shares after our initial public offering are currently restricted as a
result of market standoff and/or lock-up agreements but will be able to be sold in the near future
as set forth below.
Number of Shares
Date Available for Sale into Public Market
no shares
Immediately after our initial public offering.
38,953,807 shares
181 days after the date of the prospectus for our
initial public offering (November 19, 2007), of which
33,815,901 shares will be subject to the limitations
under Rule 144 or 701, of which 202,084 shares will be
unvested and subject to our right of repurchase.
The holders of an aggregate of 32,546,079 shares of our common stock and the holder of a
warrant to purchase 499,535 shares of common stock will have rights, subject to some conditions, to
require us to file registration statements covering their shares or to include their shares in
registration statements that we may file for ourselves or our stockholders. All of these shares are
subject to market standoff and/or lock-up agreements restricting their sale for 180 days after the
date of this prospectus.
The 180-day restricted period under the lock-up agreements with the underwriters will be
automatically extended if: (1) during the last 17 days of the 180-day restricted period we issue an
earnings release or material news or a material event relating to us occurs; or (2) prior to the
expiration of the 180-day restricted period, we announce that we will release earnings results
during the 16-day period beginning on the last day of the 180-day period, in which case the
restrictions described in the preceding paragraph will continue to apply until the expiration of
the 18-day period beginning on the issuance of the earnings release or the occurrence of the
material news or material event.
The market price of the shares of our common stock could decline as a result of sales of a
substantial number of our shares in the public market or the perception in the market that the
holders of a large number of shares intend to sell their shares.
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If securities or industry analysts do not publish research or publish inaccurate or
unfavorable research about our business, our stock price and trading volume could decline.
The trading market for our common stock will depend in part on the research and reports that
securities or industry analysts publish about us or our business. We currently do not have and may
never obtain research coverage by securities analysts, and industry analysts that currently cover
us may cease to do so. If no securities analysts commence coverage of our company, or if industry
analysts cease coverage of our company, the trading price for our stock would be negatively
impacted. In the event we obtain securities analyst coverage, if one or more of the analysts who
cover us downgrade our stock or publish inaccurate or unfavorable research about our business, our
stock price would likely decline. If one or more of these analysts cease coverage of our company or
fail to publish reports on us regularly, demand for our stock could decrease, which might cause our
stock price and trading volume to decline.
Our directors, executive officers and principal stockholders have substantial control over us
and could delay or prevent a change in corporate control.
Our directors, executive officers and holders of more than 5% of our common stock, together
with their affiliates, will beneficially own, in the aggregate, approximately 78% of our
outstanding common stock. As a result, these stockholders, acting together, would have the ability
to control the outcome of matters submitted to our stockholders for approval, including the
election of directors and any merger, consolidation or sale of all or substantially all of our
assets. In addition, these stockholders, acting together, would have the ability to control the
management and affairs of our company. Accordingly, this concentration of ownership might harm the
market price of our common stock by:
•
delaying, deferring or preventing a change in our control;
•
impeding a merger, consolidation, takeover or other business combination involving us; or
•
discouraging a potential acquirer from making a tender offer or otherwise attempting to
obtain control of us.
Delaware law and provisions in our restated certificate of incorporation and restated bylaws
could make a merger, tender offer or proxy contest difficult, which could depress the trading price
of our common stock.
We are a Delaware corporation and the anti-takeover provisions of Delaware law may discourage,
delay or prevent a change of control by prohibiting us from engaging in a business combination with
an interested stockholder for a period of three years after the person becomes an interested
stockholder, even if a change of control would be beneficial to our existing stockholders. In
addition, our restated certificate of incorporation and restated bylaws contain provisions that may
make the acquisition of our company more difficult without the approval of our Board of Directors,
including the following:
•
our Board of Directors is classified into three classes of directors with staggered
three-year terms;
•
only our Chairperson of the Board of Directors, our Chief Executive Officer, our
President or a majority of our Board of Directors is authorized to call a special meeting of
stockholders;
•
our stockholders are only able to take action at a meeting of stockholders and not by
written consent;
•
vacancies on our Board of Directors are to be filled only by our Board of Directors and
not by our stockholders;
•
our restated certificate of incorporation authorizes undesignated preferred stock, the
terms of which may be established and shares of which may be issued without stockholder
approval; and
•
advance notice procedures apply for stockholders to nominate candidates for election as
directors or to bring matters before an annual meeting of stockholders.
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USE OF PROCEEDS
If shares are resold by the Selling Stockholders, we will not receive any proceeds from such
sale. The shares will be offered for the respective accounts of the Selling Stockholders. See the
sections titled "Selling Stockholders" and "Plan of Distribution" below.
DILUTION
If you invest in our common stock, your interest will be diluted to the extent of the
difference between the price per share you pay for our common stock and the as adjusted pro forma
net tangible book value per share of our common stock after our initial public offering on November
19, 2007. After giving effect to (1) our sale in our initial public offering of 10,000,000 shares
of common stock at the initial public offering price of $10.00 per share, after deducting
underwriting discounts and commissions and estimated offering expenses payable by us, (2) the
repayment in full of the outstanding principal and accrued interest, which was approximately
$20.7 million as of September 30, 2007, on our loan from Lighthouse Capital Partners V, L.P.,
together with approximately $0.3 million of prepayment fees and (3) the expensing of debt issuance
and related costs of approximately $1.6 million for this loan, our pro forma as adjusted net
tangible book value as of September 30, 2007 would have been approximately $26.5 million, or $0.54
per share of common stock.
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SELLING STOCKHOLDERS
The shares that may be offered from time to time by the Selling Stockholders named below
pursuant to this prospectus have been acquired by the Selling Stockholders upon exercise of stock
options granted under the 2001 Plan and constitute "restricted securities" or "control securities"
within the meaning of the Form S-8.
The following table sets forth the name of each Selling Stockholder, the amount of common
stock beneficially owned by him or her as of October 31, 2007, the amount of common stock that he or she
may offer and the amount of common stock to be beneficially owned by him or her subsequent to this
offering. Since each Selling Stockholder may sell all or some portion of the shares of common
stock beneficially owned, only an estimate (assuming that he or she sells all of the shares offered
hereby) can be given as to the number of shares of common stock that will be beneficially owned by
him or her subsequent to this offering. To our knowledge, none of the Selling Stockholders is a
broker-dealer or an affiliate of a broker-dealer.
Beneficial ownership is determined in accordance with the rules of the Commission and thus
represents voting or investment power with respect to our securities. Unless otherwise indicated
below, to our knowledge, the persons named in the table have sole voting and sole investment power
with respect to all shares beneficially owned, subject to community property laws where applicable.
Shares of our common stock subject to stock options that are currently exercisable or exercisable
within 60 days of October 31, 2007, are deemed to be outstanding and to be beneficially owned by
the person holding the stock options for the purpose of computing the percentage ownership of that
person but are not treated as outstanding for the purpose of computing the percentage ownership of
any other person.
Percentage
ownership of our common stock before this offering is based on
51,528,394 shares of
our common stock outstanding as of October 31, 2007, which includes 32,550,241 shares of common
stock resulting from the automatic conversion of all outstanding shares of our preferred stock upon
the completion of our initial public offering, as if this conversion had occurred as of October 31,
2007, and includes our sale of 10,000,000 shares of common stock and the
exercise of  the underwriters' option to
purchase an additional 1,618,500 shares of common stock in our initial public offering, as
if this sale had occurred as of October 31, 2007.
Number of
Shares Beneficially
Shares
Shares Beneficially
Owned Before Offering
Registered
Owned After Offering
Name of Beneficial Owners
Number
Percentage
Number
Number
Percentage
Erik
Berggren(1)
3,333
*
%
2,917
416
*
%
Brian Brett(2)
10,000
*
10,000
—
*
John Buie(3)
97,500
*
92,500
5,000
*
Douglas J. Burgum(4)
280,000
*
250,000
30,000
*
Kevin Copithorne(5)
6,250
*
5,000
1,250
*
Eric C.W. Dunn(6)
3,652,761
7.1
50,000
3,602,761
7.0
Bruce C. Felt, Jr.(7)
500,000
*
400,000
100,000
*
Lim
Foo(8)
531
*
531
—
*
Eugene D. Galvez(9)
2,250
*
1,625
625
*
Ricardo Lacson(10)
4,312
*
3,375
937
*
Elizabeth A. Nelson(11)
130,000
*
50,000
80,000
*
Veronique K. Newman(12)
2,166
*
1,583
583
*
Namdar Saleh(13)
10,500
*
6,500
4,000
*
Steven Sommer(14)
60,000
*
60,000
—
*
Randy Stevens(15)
65,625
*
65,625
—
*
David N. Strohm(16)
13,483,781
26.2
50,000
13,433,781
26.1
David G. Whorton(17)
102,035
*
50,000
52,035
*
Andreas Zwimpfer(18)
6,833
*
4,375
2,458
*
*
Represents beneficial ownership of less than 1% of the outstanding shares of our common stock.
I -  22
Table of Contents
(1)
Includes 416 shares subject to a stock option that is exercisable within 60 days of
October 31, 2007. Mr. Berggren acquired ownership of 2,917 shares pursuant to the exercise of
a stock option in 2007. Other than his employment with us and the
exercise of a stock option,
neither we nor our predecessors or affiliates have had a material relationship with Mr.
Berggren during the last three years.
(2)
Mr. Brett acquired ownership of 10,000 shares pursuant to the exercise of stock options in
2007. Other than his employment with us and the exercise of stock options, neither we nor our
predecessors or affiliates have had a material relationship with Mr. Brett during the last
three years.
(3)
Includes 5,000 shares subject to a stock option that is exercisable within 60 days of October
31, 2007. Mr. Buie acquired ownership of 92,500 shares pursuant to the exercise of stock
options in 2006 and 2007. Other than his employment with us and the exercise of stock
options, neither we nor our predecessors or affiliates have had a material relationship with
Mr. Buie during the last three years.
(4)
Includes 30,000 shares subject to a stock option that is exercisable within 60 days of
October 31, 2007. Mr. Burgum acquired ownership of 250,000 shares pursuant to the exercise of
a stock option in 2007. Other than his service as a member of our Board of Directors and the
exercise of a stock option, neither we nor our predecessors or affiliates have had a material
relationship with Mr. Burgum during the last three years.
(5)
Includes 1,250 shares subject to a stock option that is exercisable within 60 days of October
31, 2007. Mr. Copithorne acquired ownership of 5,000 shares pursuant to the exercise of stock
options in 2006 and 2007. Other than his employment with us and the exercise of stock
options, neither we nor our predecessors or affiliates have had a material relationship with
Mr. Copithorne during the last three years.
(6)
Includes 129,699 shares held by Cardinal Venture Affiliates, L.P. and 3,473,062 shares held
by CVP SBIC, L.P. Cardinal Venture Affiliates, L.P. and CVP SBIC, L.P. are managed by Cardinal
Ventures LLC. Mr. Dunn, Christian Borcher, Derek Blazesky, Joyce Chung and Christopher Hadsell
are the Managing Members of Cardinal Ventures LLC, and share voting and investment control
over these shares. The Managing Members of Cardinal Ventures LLC disclaim beneficial ownership
except to the extent of their respective direct pecuniary interests in these shares. Mr. Dunn
acquired ownership of 50,000 shares pursuant to the exercise of a stock option in 2007. Other
than his service as a member of our Board of Directors, the exercise
of a stock option and the
purchase of our common stock by Cardinal Venture Affiliates, L.P. and CVP SBIC, L.P., neither
we nor our predecessors or affiliates have had a material relationship with Mr. Dunn during
the last three years.
(7)
Includes 100,000 shares subject to a stock option that is exercisable within 60 days of
October 31, 2007. Mr. Felt acquired ownership of 400,000 shares pursuant to the exercise of
a stock option in 2007. Other than his employment with us as our Chief Financial Officer and
the exercise of a stock option, neither we nor our predecessors or affiliates have had a
material relationship with Mr. Felt during the last three years.
(8)
Mr. Foo acquired ownership of 531 shares pursuant to the exercise of a stock option in
2007. Other than his employment with us and the exercise of a stock option, neither we nor our
predecessors or affiliates have had a material relationship with Mr. Foo during the last three
years.
(9)
Includes 625 shares subject to a stock option that is exercisable within 60 days of October
31, 2007. Mr. Galvez acquired ownership of 1,625 shares pursuant
to the exercise of a stock
option in 2007. Other than his employment with us and the exercise of
a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Mr. Galvez during
the last three years.
(10)
Includes 937 shares subject to a stock option that is exercisable within 60 days of October
31, 2007. Mr. Lacson acquired ownership of 3,375 shares pursuant
to the exercise of a stock
option in 2007. Other than his employment with us and the exercise
of a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Mr. Lacson during
the last three years.
(11)
Includes 30,000 shares subject to a stock option that is exercisable within 60 days of
October 31, 2007. Ms. Nelson acquired ownership of 50,000 shares pursuant to the exercise of
a stock option in 2007. Other than her service as a member of our Board of Directors, the
exercise of a stock option and the purchase of our common stock, neither we nor our
predecessors or affiliates have had a material relationship with Ms. Nelson during the last
three years.
(12)
Includes 583 shares subject to a stock option that is exercisable within 60 days of October
31, 2007. Ms. Newman acquired ownership of 1,583 shares pursuant
to the exercise of a stock
option in 2007. Other than her employment with us and the exercise of
a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Ms. Newman during
the last three years.
I -  23
Table of Contents
(13)
Includes 4,000 shares subject to a stock option that is exercisable within 60 days of October
31, 2007. Mr. Saleh acquired ownership of 6,500 shares pursuant
to the exercise of a stock
option in 2007. Other than his employment with us and the exercise of
a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Mr. Saleh during
the last three years.
(14)
Mr. Sommer acquired ownership of 60,000 shares pursuant
to the exercise of a stock option in
2007. Other than his employment with us and the exercise of a stock option, neither we nor our
predecessors or affiliates have had a material relationship with Mr. Sommer during the last
three years.
(15)
Mr. Stevens acquired ownership of 65,625 shares pursuant
to the exercise of a stock option in
2007. Other than his employment with us and the exercise of a stock option, neither we nor our
predecessors or affiliates have had a material relationship with Mr. Stevens during the last
three years.
(16)
Includes 12,880,787 shares held by Greylock Equity Limited Partnership. Greylock Equity GP
Limited Partnership is the General Partner of Greylock Equity Limited Partnership. Mr. Strohm,
Henry F. McCance, Howard E. Cox, Jr., William W. Helman, William S. Kaiser and Roger L. Evans
are the General Partners of Greylock Equity GP Limited Partnership and share voting and
investment control over these shares and disclaim beneficial ownership except to the extent of
their respective direct pecuniary interests in these shares. Also includes 222,010 shares held
by Mapache Investments, L.P. Mr. Strohm is a General Partner of Mapache Investments, L.P.
Mr. Strohm has voting and investment control over these shares and disclaims beneficial
ownership except to the extent of his direct pecuniary interest in these shares. Mr. Strohm
acquired ownership of 50,000 shares pursuant to the exercise of a stock option in 2007. Other
than his service as a member of our Board of Directors, the exercise
of a stock option and the
purchase of our common stock directly and by Greylock Equity Limited Partnership, neither we
nor our predecessors or affiliates have had a material relationship with Mr. Strohm during the
last three years.
(17)
Mr. Whorton acquired ownership of 50,000 shares pursuant
to the exercise of a stock option in
2007. Other than his service as a member of our Board of Directors,
the exercise of a stock
option and the purchase of our common stock, neither we nor our predecessors or affiliates
have had a material relationship with Mr. Whorton during the last three years.
(18)
Includes 2,458 shares subject to stock options that are exercisable within 60 days of October
31, 2007. Mr. Zwimpfer acquired ownership of 4,375 shares
pursuant to the exercise of a stock
option in 2007. Other than his employment with us and the exercise of
a stock option, neither
we nor our predecessors or affiliates have had a material relationship with Mr. Zwimpfer
during the last three years.
I -  24
Table of Contents
PLAN OF DISTRIBUTION
The purpose of this prospectus is to allow the Selling Stockholders to offer for sale and sell
all or a portion of their shares acquired pursuant to the exercise of stock options granted under
the 2001 Plan. The Selling Stockholders and their successors, including their transferees,
pledgees or donees or their successors, may sell the shares of common stock offered under this
prospectus directly to purchasers or through underwriters, broker-dealers or agents, who may
receive compensation in the form of discounts, concessions or commissions from the selling
stockholder or the purchasers. These discounts, concessions or commissions as to any particular
underwriter, broker-dealer or agent may be in excess of those customary in the types of
transactions involved. Neither we nor the Selling Stockholders can presently estimate the amount
of this compensation.
The Selling Stockholders are subject to lock-up agreements or market standoff provisions that
prohibit them from offering for sale, selling, granting any option for the sale of, transferring or
otherwise disposing of such shares for a period of at least 180 days as described in "Shares
Eligible for Future Sale – Lock-Up Agreements" in our prospectus filed on November 20, 2007 with
the Commission. In addition, shares to be offered or resold by means of this prospectus by the
Selling Stockholders may not exceed, during any three-month period, the amount specified in Rule
144(e) under the Securities Act.
The common stock offered under this prospectus may be sold in one or more transactions at
fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing
market prices, at varying prices determined at the time of sale, or at negotiated prices. These
sales may be effected in transactions, which may involve crosses or block transactions:
•
on any national securities exchange or U.S. inter-dealer system of a registered
national securities association on which the common stock may be listed or quoted at the
time of sale;
•
in the over-the-counter market;
•
in transactions otherwise than on these exchanges or systems or in the over-the-counter
market; or
•
through the writing of stock options, whether the stock options are listed on an
options exchange or otherwise.
The aggregate proceeds to the Selling Stockholder from the sale of the common stock offered by
them will be the purchase price of the common stock less discounts and commissions, if any. Each
of the Selling Stockholders reserves the right to accept and, together with their agents from time
to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly
or through agents. We will not receive any of the proceeds from this offering.
Our outstanding common stock is listed for trading on the NASDAQ Global Market.
The Selling Stockholders and any underwriters, broker-dealers or agents that participate in
the sale of the common stock may be "underwriters" within the meaning of Section 2(11) of the
Securities Act. Any discounts, commissions, concessions or profit they earn on any resale of the
shares may be underwriting discounts and commissions under the Securities Act. If the Selling
Stockholder is an "underwriter" within the meaning of Section 2(11) of the Securities Act, the
Selling Stockholder will be subject to the prospectus delivery requirements of the Securities Act.
In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule
144 of the Securities Act may be sold under Rule 144 of the Securities Act rather than pursuant to
this prospectus. A Selling Stockholder may not sell any common stock described in this prospectus
and may not transfer, devise or gift these securities by other means not described in this
prospectus.
To the extent required, the specific common stock to be sold, the names of the Selling
Stockholder, the respective purchase prices and public offering prices, the names of any agent,
dealer or underwriter, and any
I -  25
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applicable commissions or discounts with respect to a particular offer will be set forth in an
accompanying prospectus supplement or, if appropriate, a post-effective amendment to the
registration statement of which this prospectus is a part. This prospectus also may be used, with
our consent, by donees or pledgees of the Selling Stockholder, or by other persons acquiring shares
and who wish to offer and sell shares under circumstances requiring or making desirable its use.
In order to comply with the securities laws of some states, if applicable, the common stock
may be sold in these jurisdictions only through registered or licensed brokers or dealers.
I -  26
Table of Contents
LEGAL MATTERS
The validity of the shares of common stock offered hereby will be passed upon for us by
Fenwick & West LLP, Mountain View, California.
EXPERTS
Ernst & Young LLP, an independent registered public accounting firm, has audited our consolidated
financial statements at December 31, 2005 and 2006 and for each of the three years in the period
ended December 31, 2006, included in our prospectus filed on November 20, 2007 pursuant to Rule
424(b) under the Securities Act relating to the Registration Statement on Form S-1 (File No.
333-144758), as set forth in their report which is incorporated by reference in this prospectus and
elsewhere in the registration statement. We have incorporated by reference our consolidated
financial statements in this prospectus in reliance on Ernst & Young LLP's report given on their
authority as experts in accounting and auditing.
I -  27
Table of Contents
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We are subject to the informational reporting requirements of the Securities Exchange Act of
1934, as amended (the "
Exchange Act
"), and are required to file reports, proxy statements and other
information with the SEC. All such filings are available at the SEC Public Reference Room at 100 F
Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information
on the Public Reference Room. Our filings are also available free of charge at the website of the
SEC at www.sec.gov or our website at www.successfactors.com. A copy of any document incorporated
by reference in the registration statement of which this prospectus forms a part but which is not
delivered with this prospectus will be provided by us without charge to any person to whom this
prospectus has been delivered upon oral or written request to that person. Requests for documents
should be directed to SuccessFactors, Inc., Attention: General Counsel, 1500 Fashion Island Blvd.,
Suite 300, San Mateo, California, 94404, telephone number (650) 645-2000.
Where we summarize in this prospectus the material terms of any contract, agreement or other
document filed as an exhibit to the registration statement, the summary information provided in the
prospectus is less complete than the actual contract, agreement or document. You should refer to
the exhibits to the registration statement of which this prospectus forms a part for copies of the
actual contract, agreement or document.
INCORPORATION OF DOCUMENTS BY REFERENCE
The following documents filed by us with the SEC pursuant to the Securities Act and the
Exchange Act are incorporated herein by reference into this prospectus:
(a)
The Registrant's prospectus filed on November 20, 2007 pursuant to Rule 424(b)
under the Securities Act relating to the Registration Statement on Form S-1 (File No.
333-144758); and
(b)
The description of the Registrant's common stock contained in the Registrant's
Registration Statement on Amendment No. 1 to Form 8-A filed on November 13, 2007 under
Section 12(b) of the Exchange Act which incorporates by reference the "Description of
Capital Stock" as set forth in Registrant's Registration Statement on Form S-1 (File
No. 333-144758) and as originally filed with the SEC on July 20, 2007, as subsequently
amended, and in the prospectus filed by the Registrant pursuant to Rule 424(b) under
the Securities Act, including any amendment or report filed for the purpose of updating
such description.
In addition, all documents which we file pursuant to Sections 13(a), 13(c), 14 and 15(d) of
the Exchange Act after the date of this prospectus and prior to the termination of this offering,
shall be deemed to be incorporated by reference herein and to be a part of this prospectus from the
date of the filing of such documents. Any statement contained in a document incorporated or deemed
to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of
this prospectus to the extent that a statement contained in this prospectus, or in any other
subsequently filed document which also is or is deemed to be incorporated by reference in this
prospectus, modifies or supersedes such statement. Any such statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
I -  28
Table of Contents
1,104,031 SHARES
COMMON STOCK, PAR VALUE $0.001
Prospectus
December 7, 2007
Table of Contents
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference.
The following documents filed by the Registrant with the Commission pursuant to the Securities
Act and Securities Exchange Act of 1934, as amended (the "
Exchange Act
"), are incorporated herein
by reference:
(a)
The Registrant's prospectus filed on November 20, 2007 pursuant to Rule 424(b)
under the Securities Act relating to the Registration Statement on Form S-1, as amended
(File No. 333-144758), or the Form S-1; and
(b)
The description of the Registrant's common stock contained in the Registrant's
Registration Statement on Amendment No. 1 to Form 8-A filed on November 13, 2007 under
Section 12(b) of the Exchange Act, including any amendment or report filed for the
purpose of updating such description.
All documents subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and
15(d) of the Exchange Act prior to the filing of a post-effective amendment which indicates that
all securities offered hereby have been sold or which deregisters all securities then remaining
unsold, shall be deemed to be incorporated by reference herein and to be a part hereof from the
date of the filing of such documents.
Unless expressly incorporated into this Registration Statement, a report furnished on Form 8-K
prior or subsequent to the date hereof shall not be incorporated by reference into this
Registration Statement, except as to specific sections of such statements as set forth therein.
Any statement contained in a document incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this Registration Statement to the
extent that a statement contained in any subsequently filed document which also is deemed to be
incorporated by reference herein modifies or supersedes such statement.
Item 4. Description of Securities.
Not applicable.
Item 5. Interests of Named Experts and Counsel.
Not applicable.
Item 6. Indemnification of Directors and Officers.
Section 145 of the Delaware General Corporation Law authorizes a court to award, or a
corporation's board of directors to grant, indemnity to its directors and officers under certain
circumstances and subject to certain limitations. The terms of Section 145 of the Delaware General
Corporation Law are sufficiently broad to permit indemnification under certain circumstances for
liabilities, including reimbursement of expenses incurred, arising under the Securities Act.
As permitted by the Delaware General Corporation Law, the Registrant's restated certificate of
incorporation contains provisions that eliminate the personal liability of its directors for
monetary damages for any breach of fiduciary duties as a director, except liability for the
following:
•
any breach of the director's duty of loyalty to the Registrant or its
stockholders;
•
acts or omissions not in good faith or that involve intentional misconduct or a
knowing violation of law;
•
unlawful payments of dividends or unlawful stock repurchases or redemptions as
provided in Section 174 of the Delaware General Corporation Law; or
•
any transaction from which the director derived an improper personal benefit.
As permitted by the Delaware General Corporation Law, the Registrant's restated bylaws provide
that:
•
the Registrant is required to indemnify its directors and executive officers to
the fullest extent permitted by the Delaware General Corporation Law, subject to very
limited exceptions;
•
the Registrant may indemnify its other employees and agents as set forth in the
Delaware General Corporation Law;
II - 1
Table of Contents
•
the Registrant is required to advance expenses, as incurred, to its directors and
executive officers in connection with a legal proceeding to the fullest extent permitted
by the Delaware General Corporation Law, subject to very limited exceptions; and
•
the rights conferred in the restated bylaws are not exclusive.
In addition, the Registrant has entered into indemnity agreements with each of its current
directors and executive officers to provide them with additional contractual assurances regarding
the scope of the indemnification set forth in the Registrant's restated certificate of
incorporation and restated bylaws and to provide additional procedural protections. The
indemnification provisions in the Registrant's restated certificate of incorporation and restated
bylaws and the indemnification agreements entered into between the Registrant and each of its
directors and executive officers may be sufficiently broad to permit indemnification of the
Registrant's directors and executive officers for liabilities arising under the Securities Act.
The Registrant currently carries liability insurance for its directors and officers.
The Underwriting Agreement relating to the Registrant's initial public offering, effected
pursuant to the Registrant's Registration Statement on Form S-1, obligates Registrant's
underwriters to indemnify Registrant and its directors and officers for certain liabilities,
including certain liabilities arising under the Securities Act. Reference is hereby made to the
form of Underwriting Agreement filed as Exhibit 1.1 to the Registrant's Registration Statement on
Form S-1.
See also the undertakings set out in response to Item 9 hereof.
Item 7. Exemption From Registration Claimed.
The shares being reoffered and resold pursuant to the prospectus included herein were issued
pursuant to the 2001 Plan registered hereby and were deemed to be exempt from registration under
the Securities Act in reliance on Section 4(2) of the Securities Act or Regulation D and Regulation
S promulgated thereunder, as transactions by an issuer not involving a public offering. The
recipients of securities in each such transaction represented their intention to acquire the
securities for investment only and not with a view to or for sale in connection with any
distribution thereof and appropriate legends were affixed to the share certificates and instruments
issued in such transactions. All recipients had adequate access, through their relationship with
the Registrant, to information about the Registrant.
Item 8. Exhibits.
The following exhibits are filed as part of this Registration Statement:
Exhibit
Incorporated by Reference
Filed
Number
Exhibit Description
Form
File No.
Exhibit
Filing Date
Herewith
4.1
Restated Certificate of Incorporation of
Registrant, to be in effect upon the
completion of Registrant's initial public
offering of its common stock.
S-1
333-144758
3.2
10/31/07
4.2
Amended and Restated Bylaws of Registrant, to
be in effect upon the completion of
Registrant's initial public offering of its
common stock.
S-1
333-144758
3.4
10/31/07
4.3
Form of Registrant's common stock certificate.
S-1
333-144758
4.1
10/31/07
4.4
Fourth Amended and Restated Investor Rights
Agreement, dated as of May 19, 2006, between
Registrant and certain Stockholders of
Registrant.
S-1
333-144758
4.2
7/20/07
4.5
2001 Stock Option Plan.
S-1
333-144758
10.2
7/20/07
4.6
Form of Stock Option Agreement and Exercise
Notice and Restricted Stock Purchase
Agreement under the 2001 Stock Option Plan.
S-1
333-144758
10.3
7/20/07
4.7
2007 Equity Incentive Plan.
S-1
333-144758
10.4
11/13/07
4.8
Form of Notice of Stock Option Grant, Stock
Option Agreement and Stock Option Exercise
Agreement, Notice of Restricted Stock Award
Grant and Restricted Stock Purchase
Agreement, Notice of Restricted Stock Unit
Grant and Restricted Stock Unit Agreement,
Notice of Stock Bonus Award Grant and Stock
Bonus Agreement and Notice of Stock
Appreciation Right Grant and Stock
Appreciation Right Agreement under the 2007
Equity Incentive Plan.
S-1
333-144758
10.5
11/9/07
II - 2
Table of Contents
Exhibit
Incorporated by Reference
Filed
Number
Exhibit Description
Form
File No.
Exhibit
Filing Date
Herewith
5.1
Opinion of Fenwick & West LLP.
X
23.1
Consent of Ernst & Young LLP, Independent
Registered Public Accounting Firm.
X
23.2
Consent of Fenwick & West LLP (contained in
Exhibit 5.1).
X
24.1
Power of Attorney (included on Page II-5 of
this Registration Statement).
X
Item 9. Undertakings.
A. The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this Registration Statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act;
(ii) To reflect in the prospectus any facts or events arising after the effective date
of the Registration Statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the information set forth
in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in
the volume of securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of a prospectus filed with the Commission
pursuant to Rule 424(b) under the Securities Act if, in the aggregate, the changes in volume
and price represent no more than a 20% change in the maximum aggregate offering price set
forth in the "Calculation of Registration Fee" table in the effective Registration Statement;
and
(iii) To include any material information with respect to the plan of distribution not
previously disclosed in the Registration Statement or any material change to such information
in the Registration Statement;
provided
,
however
, that paragraphs (a)(1)(i) and (a)(1)(ii) above do not
apply if the information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to the Commission by the
Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated
by reference in the Registration Statement;
(2) That, for the purpose of determining any liability under the Securities Act, each
such post-effective amendment shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial
bona fide
offering thereof; and
(3) To remove from registration by means of a post-effective amendment any of the
securities being registered that remain unsold at the termination of the offering.
B. The undersigned Registrant hereby undertakes that, for the purpose of determining any
liability under the Securities Act, each filing of the Registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to Section 15(d) of the Exchange Act) that is
incorporated by reference in the Registration Statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial
bona fide
offering thereof.
C. Insofar as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of
the Commission such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred or paid by a
director, officer or controlling person of the Registrant in the successful defense
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of any action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered hereby, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and
has duly caused this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of San Mateo, State of
California, on this 7th day of
December, 2007.
SUCCESSFACTORS, INC.
By:
/s/ Lars Dalgaard
Lars Dalgaard
President and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby
constitutes and appoints Lars Dalgaard, Bruce C. Felt, Jr. and Julian K. Ong, and each of them, as
his or her true and lawful attorneys-in-fact and agents with full power of substitution, for him or
her in any and all capacities, to sign any and all amendments (including post-effective amendments)
to this Registration Statement on Form S-8, and to file the same, with all exhibits thereto and
other documents in connection therewith, with the Securities and Exchange Commission, granting unto
said attorneys-in-fact and agents full power and authority to do and perform each and every act and
thing requisite and necessary to be done in connection therewith, as fully for all intents and
purposes as he or she might or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents, or his substitute, may lawfully do or cause to be done by virtue
hereof.
Pursuant to the requirements of the Securities Act, this Registration Statement has been
signed by the following persons in the capacities and on the date indicated.
Name
Title
Date
/s/
Lars Dalgaard
Lars Dalgaard
President, Chief Executive Officer and
Director
(Principal Executive Officer)
December 7, 2007
/s/   Bruce C. Felt, Jr.
Bruce C. Felt, Jr.
Chief Financial Officer
(Principal Accounting and Financial Officer)
December 7, 2007
/s/   David N. Strohm
David N. Strohm
Chairperson of the Board of Directors
December 4, 2007
/s/   Douglas J. Burgum
Douglas J. Burgum
Director
December 4, 2007
/s/   Eric C.W. Dunn
Eric C.W. Dunn
Director
December 4, 2007
/s/   William E. McGlashan, Jr.
William E. McGlashan, Jr.
Director
December 5, 2007
/s/   Elizabeth A. Nelson
Elizabeth A. Nelson
Director
December 4, 2007
/s/   David G. Whorton
David G. Whorton
Director
December 4, 2007
II - 5
Table of Contents
EXHIBIT INDEX
Exhibit
Incorporated by Reference
Filed
Number
Exhibit Description
Form
File No.
Exhibit
Filing Date
Herewith
4.1
Restated Certificate of Incorporation of
Registrant, to be in effect upon the
completion of Registrant's initial public
offering of its common stock.
S-1
333-144758
3.2
10/31/07
4.2
Amended and Restated Bylaws of Registrant, to
be in effect upon the completion of
Registrant's initial public offering of its
common stock.
S-1
333-144758
3.4
10/31/07
4.3
Form of Registrant's common stock certificate.
S-1
333-144758
4.1
10/31/07
4.4
Fourth Amended and Restated Investor Rights
Agreement, dated as of May 19, 2006, between
Registrant and certain Stockholders of
Registrant.
S-1
333-144758
4.2
7/20/07
4.5
2001 Stock Option Plan.
S-1
333-144758
10.2
7/20/07
4.6
Form of Stock Option Agreement and Exercise
Notice and Restricted Stock Purchase
Agreement under the 2001 Stock Option Plan.
S-1
333-144758
10.3
7/20/07
4.7
2007 Equity Incentive Plan.
S-1
333-144758
10.4
11/13/07
4.8
Form of Notice of Stock Option Grant, Stock
Option Agreement and Stock Option Exercise
Agreement, Notice of Restricted Stock Award
Grant and Restricted Stock Purchase
Agreement, Notice of Restricted Stock Unit
Grant and Restricted Stock Unit Agreement,
Notice of Stock Bonus Award Grant and Stock
Bonus Agreement and Notice of Stock
Appreciation Right Grant and Stock
Appreciation Right Agreement under the 2007
Equity Incentive Plan.
S-1
333-144758
10.5
11/9/07
5.1
Opinion of Fenwick & West LLP.
X
23.1
Consent of Ernst & Young LLP, Independent
Registered Public Accounting Firm.
X
23.2
Consent of Fenwick & West LLP (contained in
Exhibit 5.1).
X
24.1
Power of Attorney (included on Page II-5 of
this Registration Statement).
X
II - 6