CHARTER
FOR THE COMPENSATION COMMITTEE OF TIX CORPORATION
1.
PURPOSE.
The
purpose of the Compensation Committee (the “Committee”)
of the Board of Directors (the “Board” and, each
member of the Board, a “Director”) of Tix Corporation
(the “Company”) is to assist the Board in discharging
its duties relating to compensation of the Company’s executive
officers and non-employee Directors.
2.
STATEMENT OF POLICY.
The
Committee’s primary duties and responsibilities are to:
•
Provide compensation to the Company’s executive officers
in such a manner as to attract and retain the best available
personnel for positions of substantial responsibility with the
Company.
•
Provide incentives for such persons to perform to the best of
their abilities for the Company.
•
Recommend to the Board and administer the Company’s executive
officer compensation plans, policies and programs.
•
Regularly review and advise the Board with respect to executive
compensation principles and policies applicable to the Company.
•
Prepare an annual report on executive compensation for inclusion
in the Company’s proxy statement.
The
Committee will fulfill these responsibilities by carrying out
the activities enumerated
in Section 5 of this Charter. The Committee may augment the
activities defined by Section 5 at its discretion in order to
comply with the requirements of the Sarbanes-Oxley Act, the
requirements of Nasdaq and the Securities and Exchange Commission
(the “SEC”) and any other applicable laws and regulations.
3.
COMPOSITION.
The
Committee shall consist of at least three (3) but not more than
five (5) directors, each of whom will be a “non-employee
director” as defined in Rule 16b-3 promulgated under Section
16 of the Securities Exchange Act of 1934, as amended, an “outside
director” as defined in Section 162(m) of the Internal
Revenue Code of 1986, as amended, and an “independent
2 director” within the meaning of the applicable Nasdaq
rules and any rule or regulation prescribed by the SEC now or
in the future.
The
members of the Committee, including its Chair, will be appointed
annually by the Board, following receipt of the recommendation
of the Nomination and Governance Committee. Committee members
will serve at the discretion of the Board.
4.
MEETINGS.
The
Committee shall meet four (4) times annually, or more frequently,
as circumstances dictate. A meeting may be called by the Chair
or at the direction of the Chair at the request of any member
of the Committee. The Committee may meet in person or by phone
and shall have the authority to act by written consent. A majority
of the total authorized number of members of the Committee will
constitute a quorum at all Committee meetings, and the affirmative
vote or written consent of a majority of the authorized number
of members shall be necessary and sufficient to take any Committee
action.
All
non-employee Directors may attend and observe meetings of the
Committee. In such case, however, any Director who is not a
member of the Committee shall neither participate in any discussion
or deliberation at such meeting unless the Committee so requests
and, in no event, shall any Director who is not a member of
the Committee be entitled to vote on any Committee matters.
The Committee may request any officer or employee of the Company
or the Company’s outside counsel to attend a meeting of
the Committee or meet with any members of, or consultants to,
the Committee.
5.
COMMITTEE RESPONSIBILITIES AND AUTHORITY.
Pursuant
to the Committee’s purpose, the Committee shall:
•
Review annually and approve corporate goals and objectives relevant
to executive compensation and evaluate performance in light
of those goals.
•
Review annually and determine the individual elements of total
compensation for the Chief Executive Officer and all other officers
within the meaning of SEC Rule 16a-1(f) (“Officers”),
and communicate in the annual Committee report to shareholders
the factors and criteria on which the Chief Executive Officer
and all other executive officers’ (within the meaning
of Rule 3b-7 issued by the SEC) compensation for the last year
was based.
•
Approve all special perquisites, special cash payments and other
special compensation and benefit arrangements for Officers.
•
Review and recommend the compensation for non-employee Directors
and make recommendations to the Board for its approval. In connection
with such recommendations, the Committee shall present to the
Board the criteria used to determine such compensation recommendations.
•
With sole and exclusive authority (except as explicitly delegated
to the Company’s Chief Executive Officer), make and approve
stock option grants and other discretionary awards under the
Company’s stock option or other equity incentive plans
to all persons who are Board members or Officers.
•
Grant stock options and other discretionary awards under the
Company’s stock option or other equity incentive plans
to all other eligible individuals in the Company’s service.
The Committee may delegate to one or more corporate officers
designated by the Committee the authority to make grants to
eligible individuals (other than any such corporate officer),
provided that the Committee shall have fixed the price (or a
formula for determining the price) and the vesting schedule
for such grants, approved the form of documentation evidencing
such grants, and determined the appropriate number of shares
or the basis for determining such numbers of shares by position,
compensation level or category of personnel. Any corporate officer(s)
to whom such authority is delegated shall regularly report to
the Committee the grants so made. Any such delegation may be
revoked at any time by the Committee.
•
Amend the provisions of the Company’s stock option or
other equity incentive plans, to the extent authorized by the
Board, and make recommendations to the Board with respect to
incentive compensation and equity-based plans.
•
Approve for submission to the Company’s shareholders stock
option or other equity incentive plans or amendments thereto.
•
Oversee and periodically review the operation of all of the
Company’s employee benefit plans. Responsibility for day-to-day
administration, including the preparation and filing of all
government reports and the preparation and delivery of all required
employee materials and communications, will be performed by
Company personnel.
•
Review matters related to management performance, compensation
and succession planning and executive development for executive
staff.
•
Approve any and all separation packages and severance benefits
for Officers.
• Have full access to the Company’s executives,
personnel and advisors as necessary to carry out its responsibilities.
•
Obtain such data or other resources as it deems necessary to
perform its duties, including, but not limited to, obtaining
external consultant reports or published salary surveys, with
sole authority engage independent compensation consultants and
other professionals to assist in the design, formulation, analysis
and implementation of compensation programs for Officers and
other key employees.
•
Have responsibility for the review and approval of all reports
and summaries of compensation policies and decisions as may
be appropriate for operational purposes or as may be required
under applicable law.
•
Have the authority, to the extent it deems necessary or appropriate,
to retain lega or other advisors. In the event that the Committee
chooses to engage any such advisors, the Company shall provide
appropriate funding, as determined by the Committee, for the
payment of such advisors.
•
Review this Charter at least annually, as conditions dictate,
and recommend any changes to the Board.
•
On an annual basis, evaluate the performance of the Committee
in light of its purpose.
•
Report to the Board on the major items covered at each Committee
meeting.
•
Perform any other activities consistent with this Charter, the
Company’s Bylaws and governing law as the Committee or
the Board deems necessary or appropriate. Notwithstanding the
foregoing, any action of the Committee, other than the grant
of stock options or other discretionary awards under the Company’s
stock option or other equity incentive plans, may be subject
to Board review and may be revised, modified or rescinded by
the Board.
6.
MINUTES.
The
Committee will maintain written minutes of its meetings, which
minutes will be filed with the minutes of the meetings of the
Board.
7.
REPORTS.
In
addition to preparing the report in the Company’s proxy
statement in accordance with the rules and regulations of the
SEC, the Committee will summarize its examinations and recommendations
to the Board as may be appropriate, consistent with this Charter.
8.
COMPENSATION.
Members
of the Committee will be eligible to receive fees or other compensation
for their service as Committee members as determined by the
Board. Changes in such compensation will be determined by the
Board in its sole discretion.
9.
DELEGATION OF DUTIES.
Subject
to the Company’s Certificate of Incorporation and Bylaws
and applicable laws and rules of markets in which the Company’s
securities then trade, in fulfilling its responsibilities, the
Committee shall be entitled to delegate any or all of its responsibilities
to a subcommittee of the Committee.