Contract
This
Consulting Agreement (“the Agreement”) made effective as of July 5, 2007 by and
between Tix Corporation with its principal offices at 00000 Xxxxxxx Xxxxx,
Xxxxxx Xxxx, Xx 00000, (the “Company”) and ARD Partners, LLC (herein the
“CONSULTANT”), with principal offices at 0 Xxxxxxxxxx Xx., Xxxx Xxxxx, Xxxxxxx
00000.
In
consideration of the mutual covenants contained herein and on the terms and
conditions set forth below, the Company and CONSULTANT hereby agree as follows:
Provision
of Services:
CONSULTANT
agrees to provide the services described below to the Company and to place
at
the disposal of the Company its personnel, services, and experience. Failure
to
perform these services will be considered a material breach of the Agreement
under section 9.
CONSULTANT
will, at the Company’s request, assist with introductions to, and relationship
advisory assistance with, sources of capital. CONSULTANT shall at no time act
as
a broker, nor will CONSULTANT or any principal perform any duties that require
CONSULTANT or the individual to be a licensed securities broker dealer,
registered representative, or registered investment advisor.
CONSULTANT
will, at the Company’s request, assist with researching, drafting, and preparing
financial forecasts for investor relations purposes, business plans; and or
presentation materials for similar audiences.
CONSULTANT
will, at the Company’s request, provide advisory assistance to the board with
respect to issuance of securities, capitalization and structural aspects of
private or public issuances of securities. Said advisory assistance will be
limited to non-negotiation type assistance where CONSULTANT would not structure,
value or solicit securities offerings.
CONSULTANT’s
staff will, at the Company’s request, assist in developing multimedia
presentation materials and scheduling, as well as facilitating introductions
and
direct meetings with the financial community. CONSULTANT will at all times
have
at least two full time executives available to assist the Company in
introductions to and relationship facilitation with members of the financial
community, for the purposes of disseminating the Company’s story to the public.
CONSULTANT
will introduce the Company to top tier sell-side analysts, institutional buyers
that include small-cap fund managers, and growth mutual funds and money managers
once a listing on NASDAQ small capitalization exchange is achieved.
CONSULTANT
will, at the Company’s request, provide advisory assistance to the Company and
its board of directors for all aspects of the Company’s NASDAQ small
capitalization exchange application and listing.
Base
Compensation:
The
Company agrees to issue to CONSULTANT 200,000 unregistered shares of its common
stock. These shares will be delivered as soon as possible utilizing best efforts
of the Company.
The
Company shall also pay at or around the first of each month a monthly cash
fee
to CONSULTANT of three thousand dollars ($3,000.00) commencing July 1, 2007
and
ending June 30, 2009.
Registration
Rights Provision
If
Company files a Registration Statement during period of this contract Consultant
requests piggy back rights on the Registration Statement.
Liability:
In
no
event shall either party be liable for any punitive, incidental or consequential
damages to the other party, its stockholders, creditors, or any other person
or
entity, even if advised of the possibility thereof.
It
is
further understood and agreed that as CONSULTANT will rely upon the information
furnished by the Company to it, the Company will use its commercially reasonable
best efforts to provide to CONSULTANT material information that is accurate
and
reliable.
CONSULTANT
acknowledges that it will come into possession of material non-public
information about the Company. Accordingly, CONSULTANT will not trade (or cause
or encourage in any fashion any third party to trade) in any securities of
the
other party while in possession of any such non-public information regarding
the
Company.
In
the
event that CONSULTANT buys and/or sells shares of the Company’s common stock
during the term of this Agreement, CONSULTANT for itself, its heirs, executors,
administrators and assigns, agrees to forever release, quitclaim and discharge
the Company, its predecessors and successors, present and former affiliates,
subsidiaries, parent corporations, legal representatives, principals, officers,
directors, insurers and employees, from each and every present, past and future
claim, debt, demand, judgment, cause of action, responsibility and liability
of
every kind and character whatsoever, known or unknown, suspected or unsuspected,
now existing or which may hereafter arise arising out of or related to such
purchase or sale by CONSULTANT of shares of the Company’s common stock.
Other
Activities of CONSULTANT: The Company recognizes that CONSULTANT now renders
and
may continue to render management and other services to other companies which
may or may not have policies and conduct activities similar to those of the
Company. CONSULTANT shall be free to render such advice and other services
and
the Company hereby consents thereto. CONSULTANT shall not be required to devote
its full time and attention to the performance of its duties under this
Agreement, but shall devote only so much of its time and attention as it and
the
Company deem necessary.
Control:
Nothing contained herein shall be deemed to require the Company to take any
action contrary to its Certificate of Incorporation, By-Laws, any applicable
statute, rule (as defined herein), or any Rules of any Regulators, or to deprive
the Company’s Board of Directors of its responsibility for any control of the
conduct of its affairs.
Term:
The
term of this Agreement shall be for a period of two years.
Termination:
In
the
event that CONSULTANT terminates this agreement without cause or the Company
terminates this agreement with cause prior to the expiration of the Term,
CONSULTANT shall be liable to the Company for the lesser of (a) the applicable
pro-rata market value of the stock issued under this agreement as of the date
hereof; or (b) the then current market value of the stock issued under this
agreement on the date of termination.
This
Agreement may be terminated by either party in the event that (i) the other
party fails to perform any material term, covenant or agreement to be observed
or performed by them under this Agreement, and such failure shall continue
for
thirty (30) days following written notice from the non-defaulting party Any
termination by the CONSULTANT, for non performance by the Company shall nullify
all afore mentioned forfeiture of any physical stock certificates.
Obligations
upon Termination
Within
five (5) business days of the first occurring of the termination of this
Agreement or the end of the Term, CONSULTANT, at the request of the Company
shall forthwith return to the Company or otherwise dispose of as the Company
may
direct all pamphlets, literature, contractual documentation, photographs,
catalogues, advertising material, specifications, cost estimates and other
materials, documents and papers whatsoever belonging to the Company and sent
to
CONSULTANT which CONSULTANT may have in its possession or under its control,
except that CONSULTANT shall have the right to retain one (1) copy of each
of
the foregoing strictly for archival purposes only.
Breach
If
THE
COMPANY unreasonably fails to fulfill one or more of its material obligations
under this Agreement (“Default”), CONSULTANT shall give THE COMPANY written
notice of such Default (“THE COMPANY Notice”). THE COMPANY shall then have
thirty (30) days after its receipt of the THE COMPANY Notice to cure said
Default, provided, however, that if such Default cannot be cured within thirty
(30) days and so long as THE COMPANY is diligently pursuing the cure of such
Default in a reasonable manner and with diligence, THE COMPANY shall have a
reasonable additional period of time within which to cure such Default.
If
CONSULTANT unreasonably fails to fulfill one or more of its material obligations
under this Agreement (“Default”), THE COMPANY shall give CONSULTANT written
notice of such Default (“CONSULTANT Notice”). CONSULTANT shall then have thirty
(30) days after its receipt of the CONSULTANT Notice to cure said Default,
provided, however, that if such Default can not be cured within thirty (30)
days
and so long as CONSULTANT is diligently pursuing the cure of such default in
a
reasonable manner and with diligence, CONSULTANT shall have a reasonable
additional period of time within which to cure such Default.
Confidentiality:
CONSULTANT and the Company each agree to provide reasonable security measures
to
keep information of the other party confidential where release may be
detrimental to such party’s business interests (“Confidential Information”). All
non-public information provided to CONSULTANT by the Company shall be deemed
confidential, unless the Company provides written confirmation that such
information is not confidential or has been disseminated to the public.
CONSULTANT and the Company shall each require their employees, agents,
affiliates, subcontractors, other licensees, and others who will have access
to
Confidential Information through CONSULTANT and the Company, as the case may
be,
to enter into appropriate non-disclosure agreements requiring the
confidentiality contemplated by this Agreement. Both CONSULTANT and the Company
agree that they will not, either during the term of this Agreement or at any
time thereafter, disclose, use or make known for its or another’s benefit, any
Confidential Information acquired or used by it hereunder.
Agency
CONSULTANT,
its officers, directors, employees, and agents shall lack any and all authority
to legally bind the Company.
Compliance
with Regulatory Agencies. Each party agrees that all actions, direct or
indirect, taken by it and its respective agents, employees and affiliates in
connection with the Agreement shall conform to all applicable Federal and State
securities laws, and the applicable rules and regulations of the SEC or any
self-governing body (collectively “Rules”) which may have jurisdiction over the
party taking such actions (collectively “Regulators”).
Notices.
Any notices to be given hereunder by any party to the other may be effected
by
personal delivery in writing or by mail, registered or certified, postage
prepaid, with return receipt requested. Mailed notices shall be addressed to
the
signatory of this Agreement at the addresses appearing in the introductory
paragraph hereof, but any party may change its address by written notice to
the
other party. Notices delivered personally shall be deemed communicated as of
actual receipt; mailed notices shall be deemed communicated three (3) days
after
mailing.
Assignment.
This Agreement and all of the provisions hereof shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
permitted assigns; neither this Agreement nor any right, interests or
obligations hereunder may be assigned by any party hereto without the prior
written consent of the other party.
Delegation.
Neither party shall delegate the performance of its duties under this Agreement
without the prior written consent of the other party.
Publicity.
Neither party shall make or issue, or cause to be made or issued, any
announcement or written statement concerning this Agreement without the prior
consent of the other party. This provision shall not apply, however, to any
announcement or written statement required to be made by law, pursuant to Rules,
or by any Regulators.
Counterparts.
This Agreement may be executed simultaneously 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.
Entire
Agreement. This Agreement sets forth the entire Agreement and understanding
the
parties hereto in respect of the subject matter contained herein, and supersedes
all prior agreements, promises, covenants, arrangements, communications,
representations or warranties, whether oral or written.
Third
Parties. Nothing herein expressed or implied is intended or shall be construed
to confer upon or give to any person or corporation other than the parties
hereto and their successors or assignees, any rights or remedies under or by
reason this Agreement.
Survivability.
If any part of this Agreement is found, or deemed by a binding arbitration
to be
invalid or unenforceable, that part shall be severed from the remainder of
this
Agreement.
Return
of
Information. Each party shall keep a record of the location where all
Confidential Information furnished or created by the other party is located.
Upon termination of the Agreement, all copies of the Confidential Information
of
the other party, including analyses, compilations, forecasts, studies or other
documents will be returned immediately upon the written request therefore.
That
portion of the Confidential Information which consists of analyses,
compilations, forecasts, studies or other documents prepared by CONSULTANT
or
its representatives will continue to be held by CONSULTANT and kept confidential
and subject to the terms of this Agreement.
Relationship
of the Parties. Nothing contained in this Agreement shall be deemed to cause
either party to become the partner of the other, the agent or legal
representative of the other, nor create any fiduciary relationship between
them.
It is not the intention of the parties to create nor shall this Agreement be
construed to create any commercial relationship such as, but not limited to,
a
joint venture or a partnership. Neither party shall have any authority to act
for or to assume any obligation or responsibility on behalf of the other party.
Each party shall be responsible only for its obligations as provided herein.
In
Witness Whereof, the parties have caused this Agreement to be signed as of
the
day and year first written above.
ARD
Partners, LLC
______________________________
Name:
Xxxx Xxxxxxxx, Manager
Date:
_______________________
TIX
Corporation
By:
_______________________________
Name:
Xxxxx Xxxxxxx
Title:
CEO
Date:
July 5, 2007