MARKETING AGREEMENTMarketing Agreement |
|
|
|
You are currently viewing: This Marketing Agreement involves
CANEUM INC | Iain Allison. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
|
|
|
Search Marketing Agreement by:
Exhibit 99.1
MARKETING AGREEMENT
This
Marketing Agreement (the
“Agreement”) entered into this 31st day of
December 2006 (the “Effective Date”), is by and between,
Caneum, Inc., a Nevada corporation, (hereinafter referred to as
“Caneum”), and Iain Allison, an individual (the
“Contractor”).
Recitals:
Whereas, Caneum desires to engage the
services of the Consultant to market the products and services provided by
Continuum Systems Private Limited, an Indian company and subsidiary of Caneum
(hereinafter “Continuum”); and
Whereas, the Board of Directors of
Caneum (the “Board”) has approved the engagement of the Contractor
on the terms and conditions set forth in this Agreement;
Now therefore, in consideration of the
mutual covenants and promises contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties hereto, Caneum agrees to engage the Contractor, and the Contractor
agrees to perform services for Caneum as an independent contractor, upon the
terms and conditions set forth herein.
1. Term.
The
initial term of this Agreement shall begin on the Effective Date and be for a
period of two (2) years (the “Initial Term”), unless it is
terminated earlier as provided herein. Beginning on the last date of the
Initial Term, and on each anniversary thereafter, unless it is terminated
earlier as provided herein or Caneum delivers written notice to the Contractor
of its intention not to extend the Agreement at least ninety (90) days
before such anniversary date, the term of this Agreement shall automatically be
extended for one additional year. The restrictive covenants in Section 9
hereof shall survive the termination of this Agreement.
2. Appointment.
Caneum
hereby engages Contractor on a non-exclusive basis as an independent world-wide
marketing contractor for all existing and future products and services of
Continuum listed in Exhibit A (the “Products”), and Contractor
hereby accepts such engagement pursuant to the terms hereof.
3. Independent Contractor Status.
a.
Independent Contractor.
Contractor
enters into this Agreement, and will remain throughout the term of this
Agreement, as an independent contractor. Contractor agrees that he is not and
will not become an employee, partner, agent, or principal of Caneum while this
Agreement is in effect. Contractor is not entitled to the rights or benefits
afforded to Caneum’s employees, including disability or unemployment
insurance, worker’s compensation, medical insurance, sick leave, or any
other employment benefit. Contractor is responsible for providing, at
Contractor’s expense, disability, unemployment, worker’s
compensation, and other insurance, training, permits, and licenses for
Contractor and for Contractor’s employees and subcontractors, if any.
b. Performance
of Duties.
Contractor
shall determine the method, details, and means of performing the duties set
forth in this Agreement in a professional and business-like manner.
c. Taxes.
Contractor
is responsible for paying when due all income taxes, including estimated taxes,
incurred as a result of the compensation paid by Caneum to Contractor for
services under this Agreement.
d. Employees
and Subcontractors.
Contractor,
at Contractor’s expense, may use any employee or subcontractors as
Contractor deems necessary to perform the services required of Contractor by
this Agreement. Caneum shall not control, direct, or supervise
Contractor’s employees or subcontractors in the performance.
e. Time
Commitment.
Contractor
shall not be required to devote full time, attention, and energy to the
performance of Contractor’s duties pursuant to this Agreement.
f. Tools
and Instrumentalities.
Contractor
shall supply all tools and instrumentalities required to perform the services
under this Agreement.
g. Expenses.
Unless
specific permission is received otherwise from a Director of Caneum or its
subsidiaries before an expense is occurred, Contractor shall be responsible for
expenses pertaining to the performance of the duties set forth in this
Agreement, including, but not limited to, personal and business taxes,
insurance, entertainment, travel, transportation, promotion, and programs.
4. Use of Continuum House.
Contractor
has full permission to use Continuum’s Guest House in Delhi when in
India.
5. Compensation.
a. Commissions.
As
compensation for the services performed by Contractor hereunder, Caneum shall
pay to Contractor a commission of 8% on all sales up to US$2,000,000 that he
sources and 10% top line commission on all sales in excess of US$2,000,000.
b. Incentive
Payments
Caneum
shall grant to the Contractor an incentive bonus of 297,794 shares of common
stock of Caneum on the first anniversary of the Effective Date of this
Agreement (the “First Contingent Incentive Payment”), of which
14,890 are herby authorized and directed by Contactor to be issued and delivered
to Saffron Capital Merchant Partners LLC (the “Finder”) to satisfy
Contractor’s obligation under the letter agreement dated January 16,
2006, with the Finder (the “Finder’s Agreement”), and 248,162
shares of common stock of Caneum on the second anniversary of the Effective
Date of this Agreement (the “Second Contingent Incentive Payment”),
of which 12,408 shall be issued and delivered to Finder to satisfy
Contractor’s obligation under the Finder’s Agreement, which
incentive bonuses shall be subject to the following terms and conditions:
(i)
Delivery of Incentive Payments. The First Contingent Incentive Payment
shall be delivered immediately upon calculation of any adjustment pursuant to
§5(b)(ii) or (iii) below, but in no event later than thirty days
following the first anniversary of the Effective Date. The Second Contingent
Incentive Payment shall be delivered immediately upon calculation of any
adjustment pursuant to §5(b)(ii)
2
or (iii) below, but in
no event later than thirty days following the second anniversary of the
Effective Date. All issuances of the shares of common stock pursuant to this
section shall be made in compliance with applicable exemptions from the
registration requirements under U.S. Securities Laws and qualification of the
issuances under applicable foreign Securities Laws.
(ii)
Adjustment to Incentive Payments Based upon Continuum Revenues. If
Continuum Systems Private Limited, a subsidiary of Caneum (hereinafter
“Continuum”), fails to generate gross revenue for the twelve-month
period ending December 31, 2007 (the “First Year Period”) or
for the twelve-month period ending December 31, 2008 (the “Second
Year Period”) equal to or greater than the gross revenue generated by
Continuum during the twelve-month period ended December 31, 2006 (the
“Base Period”), the number of shares of common stock of Caneum to
be delivered to the Contractor for the First and Second Contingent Incentive
Payments shall be proportionately reduced, whereby the number of shares to be
issued to the Contractor for the First or Second Contingent Incentive Payment
shall be multiplied by a factor, the numerator of which is the gross revenue
for the First Year Period or the Second Year Period, as applicable, and the
denominator of which is the gross revenue for the Base Period. The amount of
“gross revenue” for purposes of this calculation shall include
revenue generated from all existing and past Continuum customers as set forth
in Annex A, attached hereto and incorporated herein (the “Customer
List”), whether such revenue was received by Continuum (or Caneum Asia
Pacific Pte. Ltd, J.L. Sing Pte. Ltd., any other Singapore or other entity or
entities organized to receive revenue generated by Continuum) and any Caneum or
its subsidiaries customer projects completed by Continuum after
December 31, 2006. On or before the close of each calendar quarter after
the Effective Date through the date of the Second Contingent Incentive Payment,
the Contractor shall cause Continuum to submit to Caneum a list of any new
customers developed by Continuum to be added to the Customer List, which
addition shall be effective on the first day of the calendar quarter following
such submission. The applicable twelve-month gross revenue amount for any
period relevant hereto shall be determined using U.S. Generally Accepted
Accounting Principles and shall be delivered to Buyer within thirty days
following the end of the Base Period, the First Year Period, and the Second
Year Period, respectively. If following the audit of the financial statements
of Continuum (or Caneum Asia Pacific Pte. Ltd., J.L. Sing Pte. Ltd., any other
Singapore or other entity or entities organized to receive revenue generated by
Continuum), or any of Caneum or its subsidiaries customer projects completed by
Continuum, the Contractor, or Caneum reasonably determines that these unaudited
amounts are incorrect, the calculations made pursuant to this paragraph shall
be adjusted to reflect the applicable audited amount. If the adjusted audited
amounts result in a fewer number of shares to be delivered to the Contractor,
he shall immediately return to Caneum the number of shares to reflect the
revised number. If the adjusted audited amounts result in a greater number of
shares to be delivered to the Contractor, Caneum shall immediately instruct its
transfer agent to issue additional shares to reflect the revised number.
(iii)
Adjustment to Incentive Payments upon Termination of Engagement. If this
Agreement is terminated by Caneum for cause, as defined herein, on or before
the date of the First Contingent Incentive Payment, any unpaid Incentive
Payment or Payments shall be forfeited by the Contractor and neither Caneum nor
Caneum shall have any obligation to issue or deliver to Contractor any of
shares of Caneum common stock for any Contingent Incentive Payment payable
subsequent to such termination.
(iv)
Change of Control Transaction. In the event that Caneum or Continuum is
subject to a Change of Control, as defined below, after the date of this
Agreement and prior to the date of the First or Second Contingent Incentive
Payment, and the surviving entity does not assume this Agreements, then,
subject to any adjustments made pursuant to this §5(b), all unpaid
Incentive Payment shall be paid to the Contractor three days prior to the
applicable Change of Control. For purposes of this provision, “Change of
Control” shall mean: (a) a sale or other disposition of all or any
significant portion of the assets of Caneum or Continuum (other than any such
sale or other disposition to Caneum or an Affiliate of Caneum); (b) a
merger or consolidation in which Caneum is not the surviving entity and in
which the shareholders of Caneum immediately prior to such consolidation or
merger own less than fifty percent (50%) of the surviving entity’s voting
power immediately after the transaction; (c) a reverse merger in which
Caneum is the surviving entity but the shares of Caneum’s capital stock
outstanding immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of
3
securities, cash or
otherwise, and in which the stockholders of Caneum immediately prior to such
reverse merger own less than fifty percent (50%) of Caneum’s voting power
immediately after the transaction; (d) an acquisition by any person,
entity or group (excluding any entity controlled by Caneum) of securities of
Caneum representing at least fifty percent (50%) of the voting power entitled
to vote in the election of directors of Caneum; (e) any transaction
pursuant to which Continuum’s capital stock ceases to be majority owned,
directly or indirectly, by Caneum (other than any such transaction in which
Continuum is merged with and into Caneum or an Affiliate of Caneum); and
(f) any liquidation, dissolution or winding up of Continuum or Caneum
(other than any such liquidation, dissolution or winding up of Continuum in
connection with Continuum’s merger with and into Caneum or an Affiliate
of Caneum).
(v)
Arbitration of Disputes Relating to the Incentive Payments. Any
controversy, dispute or claim arising out of or relating to this §5(b) or
breach thereof shall first be settled through good faith negotiation. If the
dispute cannot be settled through negotiation, the parties agree to attempt in
good faith to settle the dispute by mediation administered by JAMS. If the
parties are unsuccessful at resolving the dispute through mediation, the
parties agree to binding arbitration administered by JAMS pursuant to its
Comprehensive Arbitration Rules & Procedures. Any such arbitration shall be
held in Orange County, California. The arbitrator shall determine how all
expenses relating to the arbitration shall be paid, including the respective
expenses of each party, the fees of the arbitrator and the administrative fee
of JAMS. The arbitrator shall set a limited time period and establish
procedures designed to reduce the cost and time for discovery while allowing
Buyer and the Seller an opportunity, adequate in the sole judgment of the arbitrator
to discover relevant information from the opposing Parties about the subject
matter of the dispute. The arbitrator shall rule upon motions to compel or
limit discovery and shall have the authority to impose sanctions, including
attorneys’ fees and costs, to the same extent as a competent court of law
or equity, should the arbitrator determine that discovery was sought without
substantial justification or that discovery was refused or objected to without
substantial justification. The decision of the arbitrator as to the validity
and amount of any indemnification claim or as to any other matter under this
Section 5(b) shall be final, binding and conclusive upon the parties. All such
decisions shall be written and shall be supported by written findings of fact
and conclusions which shall set forth the award, judgment, decree or order
awarded by the arbitrator. All payments required by the arbitrator shall be
made within thirty days after the decision of the arbitrator is rendered.
Judgment upon any award rendered by the arbitrator may be entered in any court
having jurisdiction. Caneum shall pay the reasonable travel costs and legal
fees for the Contractor to attend the arbitration hearing or hearings pursuant
to this §5(b) in the event that Caneum or Caneum shall refuse to issue or
deliver the shares of common stock pursuant to this 5(b)..
6. Termination of Engagement.
a. Termination
Due to Death.
The
Contractor’s engagement and this Agreement shall terminate immediately
upon his death. If the Contractor’s engagement is terminated due to his
death, his estate or his beneficiaries, as the case may be, shall be entitled
to payment of any unpaid portion of commissions earned through the date of such
termination and a pro rata number of the total shares issuable pursuant to
§5(b) above based upon the percentage of the Initial Term served prior to
the date of such termination (for example, if Contractor serves 120 days
of the Initial Term, he would receive 120/730ths, or approximately 16%, of the
total shares issuable under §5(b), or if Contractor serves 420 days
of the Initial Term, he would receive all of the shares issuable in the First
Contingent Incentive Payment and 55/365ths, or approximately 15%, of the shares
issuable in the Second Contingent Incentive Payment).
b. Termination
Due to Disability.
Caneum
may terminate the Contractor’s engagement at any time if the Contractor
becomes disabled, upon written notice by Caneum to the Contractor. For all
purposes under this Agreement, “Disability” shall mean that the
Contractor, at the time the notice is given, has been unable to perform his
duties under this Agreement for a period of not less than ninety (90) days
during any 180-day period as a result of the Contractor’s incapacity due
to physical or mental illness. If the Contractor’s engagement is
terminated due to his disability, he shall be entitled to payment of any unpaid
portion of commissions earned through the date of such termination and a pro
rata number of the total shares issuable pursuant to §5(b) above based
upon the percentage of the Initial Term served prior to the date of such
termination.
4
c. Termination
for Cause.
Caneum
may terminate the Contractor’s engagement at any time for Cause, provided
that it gives written notice of termination to the Contractor as set forth
below. If the Contractor’s engagement is terminated for Cause, as defined
below, he shall be entitled to payment of any unpaid portion of commissions
earned through the date of such termination. For purposes of this Agreement, a
termination for “Cause” shall mean: (i) the
final conviction of Contractor of, or Contractor’s plea of guilty or nolo
contendere, to any felony involving moral turpitude, (ii) the final
conviction of the Contractor of, or the entry of a plea of guilty or nolo
contendere by the Contractor to, any fraud, misappropriation, misfeasance,
negligence or embezzlement by Contractor in connection with Contractor’s
duties to Caneum, or (iii) Contractor’s willful failure or
misconduct in the performance of his duties hereunder.
If
Caneum exercises its right to terminate the Contractor for Cause, Caneum shall:
(1) give the Contractor written notice of termination at least thirty
(30) days before the date of such termination specifying in detail the
conduct constituting such Cause, and (2) deliver to the Contractor a copy
of a resolution duly adopted by a majority of the entire membership of the
Board, excluding interested directors, after reasonable notice to the
Contractor and an opportunity for the Contractor to be heard in person by
members of the Board, finding that the Contractor has engaged in such conduct.
d. Voluntary
Termination.
If
the Contractor voluntarily terminates his engagement on his own initiative for
reasons other than his death or disability he shall be entitled to payment of
any unpaid portion of commissions earned through the date of such termination
and a pro rata number of the total shares issuable pursuant to §5(b) above
based upon the percentage of the Initial Term served prior to the date of such
termination.
A
voluntary termination under this paragraph shall be effective upon fifteen
(15) days’ prior written notice to Caneum unless the parties
mutually agree to extend the effective date.
7. Conflicting Products.
Without
the prior written authorization of Caneum, Contractor, Contractor’s
employees or agents, shall not, during the term of this Agreement, directly or
indirectly, sell or solicit sales of any products or services which, in the
sole determination by Caneum, would in any way compete with the Products or
services sold by Continuum or affiliates, or would impair or prevent Contractor
from using its best efforts to promote the sale of the Products hereunder.
8. [Reserved]
9. Confidentiality.
During
the Term of this Agreement and thereafter, the Contractor shall hold in
strictest confidence, and not use, except for the benefit of Caneum or its
subsidiaries, or disclose to any person, firm or corporation without written
authorization of Caneum, any Confidential Information of Caneum or its
subsidiaries. For purposes of this Agreement, “Confidential
Information” means any non-public information that relates to the actual
or anticipated business or research and development of Caneum or its
subsidiaries or its technical data, trade secrets or know-how, including
research, product plans or other information regarding existing or future
Products or services and markets therefor, customer lists and customers
(including customers of Caneum or its subsidiaries on whom Contractor called,
customers generated by Contractor, or customers with whom Contractor becomes
acquainted during the term of his employment), software, developments, inventions,
processes, formulas, technology, designs, drawings, engineering, hardware
configuration information, marketing, finances or other business information,
but excluding any of the foregoing items which have become publicly known and
made generally available through no wrongful act of Contractor or of others who
were under confidentiality obligations as to the item or items involved. In the
event that Contractor considers certain information to be excluded from the
above obligations and intends to make disclosure of such information to a third
party, it shall notify
5
Caneum in writing and Caneum
shall have thirty (30) days from the date of receipt of the written notice
to take a position in writing, it being understood that in the event Caneum
fails to respond within such time, it will be deemed to have given consent. The
provisions of this section shall survive the termination of this Agreement.
10. Arbitration.
Any
controversy, dispute or claim arising out of or relating to this Agreement or
breach thereof shall first be settled through good faith negotiation. If the
dispute cannot be settled through negotiation within 30 days of the
controversy, dispute or claim arising, the parties agree to attempt in good
faith to settle the dispute by mediation administered by JAMS. If the parties
are unsuccessful at resolving the dispute through mediation within 30 days
of reference of the dispute to mediation, the parties agree to binding
arbitration administered by JAMS pursuant to its Comprehensive Arbitration
Rules & Procedures. Any such arbitration shall be held in Orange County,
California. The arbitrator shall determine how all expenses relating to the
arbitration shall be paid, including the respective expenses of each party, the
fees of the arbitrator and the administrative fee of JAMS. The arbitrator shall
set a limited time period and establish procedures designed to reduce the cost
and time for discovery while allowing parties an opportunity, adequate in the
sole judgment of the arbitrator to discover relevant information from the
opposing Parties about the subject matter of the dispute. The arbitrator shall
rule upon motions to compel or limit discovery and shall have the authority to
impose sanctions, including attorneys’ fees and costs, to the same extent
as a competent court of law or equity, should the arbitrator determine that
discovery was sought without substantial justification or that discovery was
refused or objected to without substantial justification. The decision of the
arbitrator as to the validity and amount of any indemnification claim shall be
subject to the limitations set forth in this Agreement and final, binding and
conclusive upon the parties. All such decisions shall be written and shall be
supported by written findings of fact and conclusions which shall set forth the
award, judgment, decree or order awarded by the arbitrator. All payments
required by the arbitrator shall be made within thirty days after the decision
of the arbitrator is rendered. Judgment upon any award rendered by the
arbitrator may be entered in any court having jurisdiction.
11. Legal Expenses.
Except
as provided in Section 10 hereof, if any legal action or other proceeding
is brought for the enforcement of this Agreement, or because of an alleged
dispute, breach, default, or misrepresentation in connection with any of the
provisions of this Agreement, the successful or prevailing party or parties
will be entitled to recover reasonable attorneys’ fees and other costs
incurred in that action or proceeding, in addition to any other relief to which
it or they may be entitled.
12. [Reserved]
13. Assignability and Binding Nature.
No
rights or obligations under this Agreement may be assigned or transferred by
Caneum except that such rights or obligations may be assigned or transferred
pursuant to a merger or consolidation in which Caneum is not the continuing
entity, or the sale or liquidation of all or substantially all of the assets of
Caneum, provided that the assignee or transferee is the successor to all or
substantially all of the assets of Caneum and such assignee or transferee
assumes the liabilities, obligations, and duties of Caneum, as contained in
this Agreement, either contractually or as a matter of law, and provided Contractor
agrees to such assignment. Caneum further agrees, that in the event of a sale
of assets or liquidation as described in the foregoing sentence, it shall take
whatever action it is legally entitled to take in order to cause the assignee
or transferee to expressly assume the liabilities, obligations, and duties of
Caneum under this Agreement. Notwithstanding any such assignment, Caneum shall
not be relieved from liability under this Agreement. No rights or obligations
of the Contractor under this Agreement may be assigned or transferred by the
Contractor, other than his right to receive compensation and benefits, provided
such assignment or transfer is otherwise permitted by law.
6
14. Notices.
All
notices required or permitted hereunder shall be in writing and shall be deemed
effective: (1) upon personal delivery; (2) by facsimile upon
confirmation of transmission by facsimile; or (3) in the case of delivery by
internationally recognized overnight delivery service, when received, addressed
as follows:
If to Caneum to:
With a copy (which shall not
constitute notice) to:
Ronald N. Vance
Attorney at Law
1656 Reunion Avenue, Suite 250
South Jordan, UT 84095
Facsimile: (801) 446-8803
If to the Contractor, to:
Iain Allison
5 Ravenscroft Road
Henley on Thames
Oxon RG9 2DH,
United Kingdom
Facsimile (J-Fax): (214) 853-5901
or to such other address or
addresses as either party shall designate to the other in writing from time to
time by like notice.
15. Amendment.
This
agreement may be amended or modified only by a written instrument executed by
both Caneum and the Contractor.
16. Pronouns.
Whenever
the context might require, any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms, and the singular forms of
nouns and pronouns shall include the plural, and vice versa.
17. Captions.
The
captions appearing herein are for convenience of reference only and in no way
define, limit or affect the scope or substance of any section hereof.
18. Time.
All
references herein to periods of days are to calendar days, unless expressly
provided otherwise. Where the time period specified herein would end on a
weekend or holiday, the time period shall be deemed to end on the next business
day.
19. Entire Agreement.
This
Agreement constitutes the entire agreement between Caneum and the Contractor
and supersedes all prior agreements and understandings, whether written or oral
relating to the subject matter hereof.
20. Severability.
In case any provision hereof shall be held by a court or arbitrator with jurisdiction over Caneum or the Contractor to be invalid, illegal, or otherwise unenforceable, such provision shall be restated to reflect as nearly as possible the original intentions of Caneum and the Contractor in accordance with applicable law, and the validity, legality, and enforceability of the remaining provisions shall in not way be affe






