VOTING AGREEMENT
Exhibit
10.3
This
VOTING AGREEMENT (the “Agreement”), dated as of August 8, 2007 (the “Effective
Date”), is entered into by and between Tix Corporation (the “Company”), and
Xxxxxx X. Xxxxx (“Xxxxx”), an individual. The Company and Xxxxx are sometimes
referred to herein as the “Parties” with reference to the following:
RECITALS
X. Xxxxx
is
currently the beneficial owner of 1,589,627 shares of the Common Stock of the
Company.
B. Upon
consummation of the transactions contemplated by that certain Asset Purchase
Agreement among the Company, Exhibit Merchandising LLC (“EM”) and the members of
EM dated as of August 6 2007 (the “Purchase Agreement”), Xxxxx will acquire
1,935,000 shares of common stock of the Company (the “EM Shares”).
C. As
a
condition to the consummation of the transactions contemplated by the Purchase
Agreement, Xxxxx has agreed to grant voting power to the Company over all of
the
shares of the Company’s Common Stock now and hereafter beneficially owed by
Xxxxx including the EM Shares (the “Covered Shares”) in order to secure
continuity and stability to the policy and management of the Company, which
Xxxxx believes will lead to the continued growth and profitability of the
Company and maximize the value of the Covered Shares.
AGREEMENTS
NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the Parties desire to enter into the Agreement, to provide for the
voting of the Covered Shares.
Section
1. TRANSFER
OF VOTING RIGHTS.
(a)
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VOTING
RIGHTS. Both Parties hereby agree that at each meeting of the shareholders
of the Company at which a vote of the shareholders will take place
and in
connection with any action by written consent, the Company, through
proxies designated by the Company’s board of directors, will vote (or
execute such written consent with respect to, as the case may be)
the
Covered Shares or will cause such shares or securities to be voted
(or
such consent to be executed), and will take all other necessary or
desirable actions within the Company's
control.
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(b)
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DURATION
OF VOTING RIGHTS. The voting rights to be transferred to the Company
shall
terminate as to specific amounts of the Covered Shares with the sale
or
transfer of the Covered Shares in accordance with Section
2,
and shall terminate as to all Covered Shares on the fourth anniversary
of
the Effective Date.
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1
Section
2. RESTRICTIONS.
(a)
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PUBLIC
SALE OR TRANSFER. Xxxxx shall have the full capacity to effectuate
the
sale or transfer of the Covered Shares through a public sale provided
that
such sale is in small blocks not to exceed 50,000 shares per month.
Such
public sale shall not be encumbered by any voting restrictions and
does
not require permission to be given by the Company prior to any sale
or
transfer, unless the sale is for more than 50,000 shares in any given
month, in which event the prior consent of the Company shall be required,
which may be withheld in his sole and absolute
discretion.
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(b)
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PRIVATE
SALE OR TRANSFER. Xxxxx shall be required to provide notice to and
obtain
the written permission by the Company prior to any private sale or
transfer of the Covered Shares, which permission may be withheld
in the
Company’s sole and absolute
discretion.
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Section
3. MISCELLANEOUS
(a)
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GOVERNING
LAW. The Agreement shall be governed by, and construed and interpreted
in
accordance with, the laws of the State of California, without giving
effect to its principles or rules regarding conflicts of laws (to
the
extent such principles or rules would require the application of
the law
of another jurisdiction).
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(b)
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SEVERABILITY.
If any provision of the Agreement or portion thereof shall be declared
invalid, illegal or unenforceable, such provision or portion thereof
shall
be severed and all remaining provisions shall continue in full force
and
effect.
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(c)
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WAIVER.
No waiver of any provision of the Agreement shall be valid unless
it is
expressed in a written instrument duly executed by the party or parties
making such waiver. The failure of any party to insist, in any one
or more
instances, on performance of any of the terms and conditions of the
Agreement shall not be construed as a waiver or relinquishment of
any
rights granted hereunder or of the future performance of any such
term,
covenant or condition but the obligation of any party with respect
thereto
shall continue in full force and
effect.
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(d)
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AMENDMENTS.
No amendment, alteration or modification of the Agreement shall be
valid
unless in each instance such amendment, alteration or modification
is
expressed in a written instrument executed by each of the Company
and
Xxxxx.
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(e)
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NOTICES.
All notices, requests, consents and other communications required
or
permitted in the Agreement shall be in writing and shall be deemed
effectively given: (i) upon personal delivery to the party to be
notified,
(ii) when sent by confirmed telex or facsimile if sent during normal
business hours of the recipient; if not, then on the next business
day,
(iii) five days after having been sent by registered or certified
mail,
return receipt requested, postage prepaid, or (iv) one day after
deposit
with a nationally recognized overnight courier, specifying next day
delivery, with written verification of
receipt.
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(f)
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COUNTERPARTS.
The Agreement may be executed in any number of counterparts, each
of which
shall be deemed to be an original, but all of which together shall
constitute one and the same
instrument.
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(g)
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HEADINGS.
The headings of the Agreement are for convenience and shall not control
or
affect the meaning or construction of any provision
hereof.
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(h)
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SPECIFIC
PERFORMANCE. Each of the Parties agrees and acknowledges that the
other
will be irreparably damaged in the event the Agreement is not specifically
enforced. Each of the Parties therefore agrees that in the event
of a
breach of any provision of the Agreement the aggrieved party may
elect to
institute and prosecute proceedings in any court of competent jurisdiction
to enforce specific performance or to enjoin the continuing breach
of the
Agreement.
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IN
WITNESS WHEREOF the undersigned have set their hands as of the above
date.
TIX
CORPORATION
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By | ||||
Name: Xxxxx
Xxxxxxx
Title: President
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Xxxxxx
X. Xxxxx
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