EMPLOYMENT AGREEMENT
Exhibit 99.3
This Employment Agreement (the “Agreement”) entered into this 28th day of
March 2006 (the “Effective Date”), is by and between Caneum, Inc., a corporation formed under the
laws of the State of Nevada with its principal place of business at 000 Xxxxxxx Xxxxxx Xxxxx, Xxxxx
000, Xxxxxxx Xxxxx, XX 00000 (“Caneum”), and Xxxxxx X. Xxxxxx (“the Employee”).
Recitals:
Whereas, Caneum desires to engage the services of the Employee as Senior
Vice-President of Caneum and as Managing Partner of TierOne Consulting, Inc. (“TierOne”), a wholly
owned subsidiary of Caneum, and the Employee is willing to render such services to Caneum and
TierOne in consideration of the terms and conditions agreed to by the parties; and
Whereas, the Board of Directors of Caneum (the “Board”) has approved the employment
of the Employee 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 employ the Employee, and the Employee agrees
to perform services for Caneum and TierOne, upon the terms and conditions set forth herein.
1. Term.
a. Initial and Extended Terms.
The initial term of this Agreement shall begin on the Effective Date, and be for a period of
two (2) years, unless it is terminated earlier as provided herein. Beginning on that date, and on
each anniversary thereafter, unless it is automatically extended as provided in Section 1(b) below
or terminated earlier as provided in Section 6 or unless Caneum delivers written notice to the
Employee 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.
b. Corporate Transaction.
In the event of a Corporate Transaction, as defined below, the term of this Agreement shall be
automatically extended for a period of four (4) years from the Effective Date and any unvested
options granted pursuant to this Agreement shall immediately vest. For purposes of this Agreement,
“Corporate Transaction” means (i) a consolidation or merger of Caneum with or into another company
or entity in which the capital stock of Caneum immediately prior to such transaction represents
less than 50% of the voting power of the
surviving entity (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately
after such transaction; (ii) any transaction or series of related transactions to which Caneum is a
party in which in excess of 50% of Caneum’s voting power is transferred, or (i) the sale or other
disposition of all or substantially all of the assets of Caneum to another company or entity not
controlled by the then existing stockholders of Caneum in a transaction or series of transactions.
2. Title and Duties.
The Employee shall be employed as Senior Vice-President of Caneum and shall continue to serve
as Managing Partner of TierOne. The Employee shall perform such services consistent with his
positions as might be assigned to him from time to time and are consistent with the bylaws of
Caneum and TierOne, as applicable. Employee shall have such responsibilities and authority as is
commensurate with such offices and as may be prescribed by Caneum and bylaws of Caneum and TierOne,
as applicable. Caneum shall have the right to review and change the responsibilities of Employee
from time to time as it may deem necessary or appropriate, provided, however, that such
responsibilities shall not be inconsistent with the Employee’s position as Senior Vice-President of
Caneum.
3. Location.
The Employee’s place of employment shall be the offices of Caneum or TierOne, or at such other
location as mutually agreed between Employee and Caneum, but in no event outside Orange County,
California.
4. Extent of Services.
a. Duty to Perform Services.
The Employee agrees not to engage in any business activities during the term of this Agreement
except those that are for the benefit of Caneum and TierOne, and to devote 100% of his entire
business time, attention, skill, and effort to the performance of his duties under this Agreement
for these entities and any corporation controlled by Caneum now or during the term of this
Agreement. Notwithstanding the foregoing, the Employee may engage in charitable, professional and
civic activities that do not impair the performance of his duties to Caneum and TierOne, as the
same may be changed from time to time. While employed by Caneum, Employee may not serve on the
board of directors of any other company, except TierOne. Nothing contained herein shall prevent
the Employee from managing his own personal investments and affairs, including, but not limited to,
investing his assets in the securities of publicly traded companies; provided, however, that the
Employee’s activities do not constitute a conflict of interest, violate securities laws, or
otherwise interfere with the performance of his duties and responsibilities as described herein.
The Employee agrees to adhere to Caneum’s published policies and procedures, as adopted from time
to time, affecting directors, officers, employees, and agents and shall use reasonable efforts to
promote Caneum’s interest, reputation, business and welfare.
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b. Corporate Opportunities.
The Employee agrees that he will not take personal advantage of any Caneum or TierOne business
opportunities that arise during this employment and that might be of benefit to either entity. All
material facts regarding such opportunities must be promptly reported to the Board for
consideration by Caneum.
5. Compensation and Benefits.
a. Base Salary.
The Employee’s annual base salary shall be $200,000. The base salary shall be payable in
equal installments in accordance with Caneum’s standard payroll practices. The Employee’s annual
base salary shall be further reviewed no less frequently than annually for increases in the
discretion of the Caneum Compensation Committee and/or Board, taking into account the compensation
level for employees with similar skills and responsibilities at companies comparable to Caneum, the
financial condition of Caneum, and the Employee’s value to Caneum relative to other members of the
executive management of Caneum; provided, however, that at no time during the term of this
Agreement shall the Employee’s base salary be decreased from the base salary then in effect except
as part of a general program of salary adjustment by Caneum applicable to all senior
vice-presidents of Caneum and above.
b. Stock Options
Upon execution of this Agreement, Employee will be granted 1,000,000 ISO options priced at
100% of the then fair market value of Caneum common stock, as determined by the Compensation
Committee on the date of grant in compliance with Section 409A of the Internal Revenue Code of
1986, as amended and the Treasury Regulations thereunder. The options shall have a term of 10
years from the date of grant. Vesting for the 1,000,000 ISO base options will follow the following
schedule and include an early exercise provision should Employee wish to exercise it:
1/16th per calendar quarter beginning with the quarter ending March 31, 2006, with the
first 62,500 options vesting on March 31, 2006. Unless otherwise provided in this Agreement, the
options shall continue to vest on the last day of each calendar quarter thereafter so long as
Employee is employed by Caneum under this Agreement.
All options will be subject to the terms, definitions and provisions of Caneum’s 2002 Stock
Option/Stock Issuances Plan, as amended (the “Option Plan”) which document is incorporated herein
by reference.
c. Performance Compensation
Employee will be eligible to receive an annual bonus, less applicable withholding taxes, as
determined by Caneum’s Compensation Committee.
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d. Other Benefits.
During the term of this Agreement, Employee will be entitled to participate in the employee
benefit plans currently and hereafter maintained by Caneum of general applicability to other senior
executives of Caneum, including, without limitation, Caneum’s group medical, dental, vision,
disability, life insurance, flexible-spending account, 401(k) and other plans. Failure to provide
full medical, dental and vision coverage under a PPO or equivalent plan to Employee that will fully
cover Employee, Employee’s spouse and all Employee’s dependents, during the term of this Agreement,
will constitute a material breach of this Agreement.
e. Vacation.
Employee will be entitled to paid vacation of four (4) weeks per year in accordance with
Caneum’s vacation policy, with the timing and duration of specific vacations mutually and
reasonably agreed to by the parties hereto.
f. Reimbursement of Business Expenses.
Caneum shall promptly reimburse the Employee for all reasonable travel, entertainment and
other expenses incurred or paid by the Employee in connection with, or related to, the performance
of his duties, responsibilities or services under this Agreement, upon presentation by the Employee
of such supporting information and documentation as Caneum may reasonably request in accordance
with company policy and the requirements of the Internal Revenue Code.
g. Deferred Compensation.
In the event that the Caneum determines that any cash severance payment benefit provided under
this Agreement, or continued group health insurance coverage benefit provided under this Agreement
fails to satisfy the distribution requirement of Section 409A(a)(2)(A) of the Internal Revenue Code
of 1986, as amended and the Treasury Regulations thereunder (the “Code”) as a result of Section
409A(a)(2)(B)(i) of the Code, then if an accelerated payment of such benefits would cause such
benefit not to be subject to the provisions of Section 409A(a)(1) of the Code, the payment of such
benefits shall be accelerated to the minimum extent necessary so that the benefit is not subject to
the provisions of Section 409A(a)(1) of the Code (the payment schedule as revised after the
application of the preceding sentence shall be referred to as the “Revised Payment Schedule”).
However, in the event the accelerated payment of such benefits would not avoid the application of
Section 409A(a)(1) of the Code, the payment of such benefits shall not be made pursuant to the
original payment schedule or the Revised Payment Schedule and instead the payment of such benefits
shall be delayed to the minimum extent necessary so that such benefits are not subject to the
provisions of Section 409A(a)(1) of the Code. To the extent that any cash severance payment
benefit provided under this Agreement, or continued group health insurance coverage benefit
provided under this Agreement fails to satisfy the distribution requirement of Section
409A(a)(2)(A) of the Code as a result of Section 409A(a)(2)(B)(i) of the Code, Caneum and the
Employee shall consult with one another in good faith and agree upon the Revised Payment Schedule
or any delay of the payment of benefits under this Agreement.
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6. Termination of Employment.
a. Termination Due to Death.
The Employee’s employment and this Agreement shall terminate immediately upon his death. If
the Employee’s employment is terminated due to his death, his estate or his beneficiaries, as the
case may be, shall be entitled to:
(i) payment of any unpaid portion of his base salary through the date of such
termination;
(ii) reimbursement for any outstanding reasonable business expenses he incurred
in performing his duties hereunder;
(iii) the right to elect continuation coverage of insurance benefits to the
extent required by law;
(iv) full and immediate vesting of any unvested stock options;
(v) any pension survivor benefits that may become due pursuant to any employee
benefit plan or program of Caneum; and
(vi) payment of any accrued but unpaid benefits, and any other rights, as
required by the terms of any employee benefit plan or program of Caneum, this
Agreement, or any other agreement between Caneum and the Employee.
b. Termination Due to Disability.
Caneum may terminate the Employee’s employment at any time if the Employee becomes disabled,
upon written notice by Caneum to the Employee. For all purposes under this Agreement, “Disability”
shall mean that the Employee, 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 Employee’s incapacity due to physical or mental illness. If the
Employee’s employment is terminated due to his disability, he shall be entitled to:
(i) payment of any unpaid portion of his base salary through the date of such
termination;
(ii) reimbursement for any outstanding reasonable business expenses he has
incurred in performing his duties hereunder;
(iii) the right to elect continuation coverage of insurance benefits to the
extent required by law;
(iv) full and immediate vesting of any unvested stock options; and
(v) payment of any accrued but unpaid benefits, and any other rights, as
required by the terms of any employee benefit plan or program of Caneum, this
Agreement, or any other agreement between Caneum and the Employee.
As soon as administratively possible following the Effective Date, Caneum shall make available
to the Employee and maintain in effect for the term of this Agreement, and other similarly-situated
employees, a disability benefit plan that provides monthly payments to Employee equal to at least
two thirds (2/3) of the highest monthly base salary Employee receives
pursuant to this Agreement, which payment will continue for as long as Employee remains
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disabled. The premiums for coverage of the Employee under such disability benefit plan shall
be paid by the Employee.
c. Termination for Cause.
Caneum may terminate the Employee’s employment at any time for Cause (as defined below),
provided that it gives written notice of termination to the Employee as set forth below. If the
Employee’s employment is terminated for Cause, as defined below, he shall be entitled to:
(i) payment of any unpaid portion of his base salary through the date of such
termination;
(ii) reimbursement for any outstanding reasonable business expenses he incurred
in performing his duties hereunder;
(iii) the right to elect continuation coverage of insurance benefits to the
extent required by law; and
(iv) payment of any accrued but unpaid benefits, and any other rights, as
required by the terms of any employee benefit plan or program of Caneum, this
Agreement, or any other agreement between Caneum and the Employee.
For purposes of this Agreement, a termination for “Cause” shall mean: (i) the final
conviction of Employee of, or Employee’s plea of guilty or nolo contendere, to any felony involving
moral turpitude, or (ii) fraud, misappropriation or embezzlement by Employee in connection with
Employee’s duties to Caneum, or (iii) Employee’s willful failure or gross misconduct in the
performance of his duties to Caneum. Employee shall notify the Caneum of any events involving him
giving rise to a claim for Cause.
If an event constituting Cause shall occur, Caneum shall notify the Employee in writing of the
nature of the event or events constituting Cause and Caneum and Employee shall attempt in good
faith to negotiate a reasonable resolution of the issues evidencing such Cause. If after thirty
(30) days from such notification the parties are unable to negotiate a resolution thereof, Caneum
shall notify the Employee in writing of the inability to reach a negotiated settlement and shall
provide an additional fifteen (15) days during which Caneum and Employee shall in good faith
continue to negotiate a reasonable resolution of the issues evidencing such Cause. After such
fifteen-day period if the parties are unable to resolve the matter to the mutual satisfaction of
each party, the parties agree to submit the issue for resolution first by mediation and, if
necessary, by arbitration as provided in Section 10 below. Unless otherwise mutually agreed by the
parties, the date of termination for Cause shall be the date of the original notice as provided in
this paragraph.
d. Termination Without Cause or Constructive Termination Without Cause.
Caneum may terminate the Employee’s employment at any time without Cause, provided that it
gives written notice of termination at least ninety (90) days before the date of such termination.
If the Employee’s employment is terminated without Cause, or if there is a constructive termination
without Cause, as defined below, the Employee shall be entitled to receive from Caneum the
following:
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(i) payment of any unpaid portion of his base salary through the date of such termination;
(ii) reimbursement for any outstanding reasonable business expenses he incurred in performing
his duties hereunder;
(iii) the right to elect continuation coverage of insurance benefits to the extent required by
law;
(iv) full and immediate vesting of one-half (50%) of any unvested stock options;
(v) payment of any accrued but unpaid benefits, and any other rights, as required by the terms
of any employee benefit plan or program of Caneum, this Agreement, or any other agreement between
Caneum and the Employee;
(vi) payment of amounts equal to any premiums for health insurance continuation coverage under
any Caneum health plan that is elected by the Employee or his beneficiaries pursuant to Section
4980B of the Internal Revenue Code, at a time or times mutually agreed to by the parties, but only
so long as the Employee is not eligible for coverage under a health plan of another employer
(whether or not he elects to receive coverage under that plan; and
(vii) subject to limitations set forth below, a severance benefit in an amount equal to the
largest annual base salary received by Employee under the Agreement for a period of time equal to
the remaining full term of the Agreement as determined under Section 1a. (ie, had the Agreement not
been terminated without Cause by Caneum, or by the Employee as a result of a constructive
termination without Cause), but only if (x) Employee executes an agreement releasing Caneum from
any further liability under this Agreement, (y) the period for revoking such release has expired,
and (z) Employee has not materially breached the Confidential Information Agreement.
The Employee shall be deemed to have earned and Caneum shall pay to Employee 75% of the total
severance benefit in Section 6(d)(vii) above within thirty (30) days after all of the applicable
conditions are satisfied. The remaining 25% of the severance benefit will be deemed earned by
Employee, and Caneum shall pay to Employee such remaining 25% of the severance benefit within
thirty (30) days following the first anniversary of the Employee’s termination date unless the
Employee materially breaches the Confidential Information Agreement during the one year period
following the Employee’s termination date, in which case such remaining 25% of the severance
benefit will be deemed unearned and will not be paid. All severance benefits paid to the Employee
shall be paid subject to all legally required payroll deductions and withholdings for sums owed by
Caneum to the Employee.
For purposes of this Agreement, constructive termination without Cause shall mean a
termination of the Employee at his own initiative following the occurrence, without the Employee’s
prior written consent, of one or more of the following events not on account of Cause:
(1) a reduction in the Employee’s then current base salary, or a significant reduction by
Caneum in Employee’s opportunities for earnings under any incentive compensation plans or bonus
opportunity, or the termination or significant reduction of any benefit or perquisite enjoyed by
Employee;
(2) any relocation of Caneum’s office in violation of Section 3 of this Agreement;
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(3) the failure of Caneum to obtain an assumption in writing of its obligation to perform
under this Agreement by any successor to all or substantially all of the assets or capital stock of
Caneum in connection with any merger, consolidation, sale or similar transaction; or
(4) any material breach of this Agreement by Caneum; or
(5) any material reduction in the position, authority or office of Employee or any material
reduction in Employee’s responsibilities or duties for Caneum.
In the event the Employee is terminated without Cause or there is a constructive termination
without Cause, each party shall provide the other with written notice not less than thirty (30)
days before the effective date of the termination of employment.
e. Voluntary Termination.
If the Employee voluntarily terminates his employment on his own initiative for reasons other
than his death, disability, or constructive termination without Cause, he shall be entitled to:
(i) payment of any unpaid portion of his base salary through the effective date
of such termination;
(ii) reimbursement for any outstanding reasonable business expenses he has
incurred in performing his duties hereunder;
(iii) the right to elect continuation coverage of insurance benefits to the
extent required by law; and
(iv) payment of any accrued but unpaid benefits, and any other rights, as
required by the terms of any employee benefit plan or program of Caneum, this
Agreement, or any other agreement between Caneum and the Employee.
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. Mitigation and Offset.
If the Employee’s employment is terminated during the term of this Agreement pursuant to the
provisions of paragraph 6(d), above, the Employee shall be under no duty or obligation to seek or
accept other employment, and no payment or benefits of any kind due him under this Agreement shall
be reduced, suspended or in any way offset by any subsequent employment. The obligation of Caneum
to make the payments provided for in this Agreement shall not be affected by any circumstance
including, by way of example rather than limitation, any set-off, counterclaim, recoupment,
defense, or other right that Caneum may assert, or due to any other employment or source of income
obtained by the Employee.
8. Entitlement to Other Benefits.
Except as expressly provided herein, this Agreement shall not be construed as limiting in any
way any rights or benefits the Employee, his spouse, dependents or beneficiaries may have pursuant
to any other employee benefits plans or programs.
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9. Confidentiality.
Employee agrees to enter into the form of Confidential Information and Invention Assignment
Agreement attached hereto as Exhibit A (the “Confidential Information Agreement”) upon
commencing employment hereunder.
10. Arbitration.
Except as otherwise provided in Section 6(c), 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, 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 Employment Arbitration Rules & Procedures and subject to JAMS Policy on
Employment Arbitration Minimum Standards of Procedural Fairness. Judgment on the Award 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. Indemnification.
Caneum agrees that if the Employee is made a party, or is threatened to be made a party, to
any action, suit or proceeding, whether civil, criminal, administrative, or investigative (a
“Proceeding”), by reason of the fact that he is or was a director, officer or employee or Caneum,
or is, or was, serving at the request of Caneum as a director, officer, member, employee or agent
of another corporation, partnership, limited liability company, joint venture, trust or other
enterprise, including service with respect to employee benefit plans, whether or not the basis of
such Proceeding is the Employee’s alleged action in an official capacity while serving as a
director, officer, member, employee or agent, the Employee shall be indemnified and held harmless
by Caneum to the fullest extent permitted or authorized by Caneum’s articles of incorporation and
bylaws. To the extent consistent with the foregoing, this obligation to indemnify the Employee and
hold him harmless shall continue even if he has ceased to be a director, officer, member, employee
or agent of Caneum or other such entity described above, and shall inure to the benefit of the
Employee’s heirs, executors and administrators. Caneum shall advance to the Employee all
reasonable costs and expenses incurred by him in connection with a Proceeding within twenty (20)
days after receipt by Caneum of a written request for such advance. Such request shall include an
undertaking by the Employee to repay the amount of such advance if it shall ultimately be
determined that the Employee is not entitled to be indemnified against such costs and expenses.
Neither the failure of Caneum (including its Board, independent legal counsel or stockholders)
to have made a determination before such Proceeding concerning payment of
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amounts claimed by the Employee under the paragraph above that indemnification of the Employee
is proper because he has met the applicable standards of conduct, nor a determination by Caneum
(including its Board, independent legal counsel or stockholders) that the Employee has not met such
applicable standards of conduct, shall create a presumption that the Employee has not met the
applicable standards of conduct.
Employee understands and acknowledges that Caneum may be required in the future to undertake
with the Securities and Exchange Commission to submit in certain circumstances the question of
indemnification to a court for a determination of Caneum’s right under public policy to indemnify
Employee.
13. Assignability and Binding Nature.
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors, heirs (in the case of the Employee) and assigns. No rights or obligations
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. 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 Employee under this Agreement may be assigned or
transferred by the Employee, other than his right to receive compensation and benefits, provided
such assignment or transfer is otherwise permitted by law.
14. Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effective:
(1) upon personal delivery; (2) upon deposit with the United States Postal Service, by registered
or certified mail, postage prepaid; or (3) in the case of delivery by nationally recognized
overnight delivery service, when received, addressed as follows:
If to Caneum to:
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxx 000
Xxxxxxx Xxxxx, XX 00000
Xxxxx 000
Xxxxxxx Xxxxx, XX 00000
With a copy (which shall not constitute notice) to:
Xxxxxx X. Xxxxx
Attorney at Law
00 Xxxx 000 Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
Attorney at Law
00 Xxxx 000 Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
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If to the Employee, to:
Xxxxxx Xxxxxx
00 Xxxxx Xxxxxxxx
Xxx Xxxxxxxx, XX 00000
00 Xxxxx Xxxxxxxx
Xxx Xxxxxxxx, XX 00000
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 Employee.
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 Employee 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 Employee 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 Employee in
accordance with applicable law, and the validity, legality, and enforceability of the remaining
provisions shall in not way be affected or impaired thereby.
21. Waiver.
No delays or omission by Caneum or the Employee in exercising any right hereunder shall
operate as a waiver of that or any other right. A waiver or consent given by Caneum or the
Employee or any one occasion shall be effective only in that instance and shall not be construed as
a bar or waiver of any right on any other occasion.
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22. Governing Law.
This Agreement shall be construed, interpreted, and enforced in accordance with the laws of
the State of California, without regard to its conflicts of laws principles.
23. Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of both Caneum and the Employee
and their respective successors and assigns, including any entity with which or into which Caneum
might be merged or that might succeed to its assets or business or any entity to which Caneum might
assign its rights and obligations hereunder; provided, however, that the obligations of the
Employee are personal and shall not be assigned or delegated by him.
24. Withholding.
Caneum may make any appropriate arrangements to deduct from all benefits provided hereunder
any taxes reasonably determined to be required to be withheld by any government or government
agency. The Employee shall bear all taxes on benefits provided hereunder to the extent that no
taxes are withheld, irrespective of whether withholding is required.
25. Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.
26. Full knowledge.
By their signatures, the parties acknowledge that they have carefully read and fully
understand the terms and conditions of this Agreement, that each party has had the benefit of
separate counsel, or has been advised to obtain separate counsel, and that each party has freely
agreed to be bound by the terms and conditions of this Agreement.
In Witness Whereof, Caneum and the Employee have executed this Agreement effective as
of the day and year first written above.
| CANEUM: | Caneum, Inc. | |||
Date: March 28, 2006
|
By: | /s/ Xxxx Xxxx | ||
| Xxxx Xxxx, Chairman, Compensation Committee | ||||
EMPLOYEE: |
||||
| Date: March 28, 2006 | /s/ Xxxxxx X. Xxxxxx | |||
| Xxxxxx X. Xxxxxx | ||||
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