Document:

Warrant Agreement, dated November 16, 2001

 Exhibit 10.23 
  
 TRX, INC. 
  
 WARRANT AGREEMENT 
  
 This Warrant Agreement (the “Agreement”) is entered into as of the 16th day of November, 2001 (the “Effective Date”), by and between
TRX, Inc., a Georgia corporation (the “Company”) and Sabre Investments, Inc., a Delaware corporation (“Holder”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company has agreed to grant to Holder warrants (the “Warrants”) to purchase shares of Common Stock, $.01 par value per share, of
the Company (the “Common Stock”) in the amounts and subject to the terms and conditions hereinafter set forth; 
  
 NOW, THEREFORE, for and in consideration of the premises and mutual promises herein contained, and for other good and valuable consideration, the receipt
and sufficiency of which are acknowledged, the parties agree as follows: 
  

	1.	Grant of Warrants. 

  
 (a) Subject to the terms and conditions set forth herein, the Company hereby grants to Holder the right to purchase from the Company the number of validly
issued, fully paid and nonassessable shares of common stock of the Company (“Common Stock”) in the amount set forth in Section l(b)(i) below at an initial exercise price per share equal to Eleven Dollars and Three Hundred Twenty
Six/10000 ($11.0326) (the “Exercise Price”). The number of shares of Common Stock purchasable under this Warrant and the Exercise Price are subject to adjustment as provided below. 
  
 (b) Determination of the Number of Shares Represented by this Warrant and
Adjustment of Exercise Price. 
  
 (i)
The number of shares of Common Stock that may be purchased upon the exercise of this Warrant shall be 640,285 shares (the “Warrant Shares”). 
  
 (ii) In the case that the Company shall, after the date hereof, issue or enter into an agreement to issue additional shares of Common
Stock, or securities convertible into Common Stock (except for (A) shares of capital stock issued upon conversion of any shares of the Company’s preferred stock, (B) shares of capital stock issued or issuable pursuant to options or purchase
agreements, warrants, capital appreciation rights, calls, convertible shares, convertible debt securities or other rights to acquire the Company’s authorized and unissued capital stock which are outstanding on the date hereof, (C) shares issued
to options granted pursuant to the 2000 Stock Incentive Plan with an exercise price of greater than $5.51, (D) shares of Common Stock issued pursuant to a subdivision of the Common Stock or stock dividend pursuant to which the number of shares for
which this Warrant is exercisable and the purchase price therefore are adjusted pursuant to Section 7 hereof, (E) shares of capital stock issued pursuant to the exchange, conversion or exercise of any securities convertible into Common Stock that
have previously been incorporated into computations hereunder on the date when such 

  

 
convertible securities were issued) (a “Dilutive Issuance”) at a purchase price per share for which Common Stock is issuable less than the
Exercise Price then in effect, then (I) the Warrant Shares for which the Warrants are exercisable shall be adjusted to equal the number determined by multiplying the Warrant Shares for which the Warrants are exercisable immediately prior to such
adjustment by a fraction (the “Adjustment Fraction”), of which (x) the numerator shall be the number of shares of Common Stock outstanding immediately prior to such Dilutive Issuance plus the number of shares of Common Stock in which such
Dilutive Issuance is convertible and (y) the denominator shall be (1) the number of shares of Common Stock outstanding immediately prior to such Dilutive Issuance plus (2) the number of shares of Common Stock which the aggregate amount of
consideration, if any, received by the Company for the total number of such additional shares of Common Stock so issued or sold in such Dilutive Issuance would purchase at the Exercise Price in effect immediately prior to such Dilutive Issuance; and
(II) the Exercise Price shall be adjusted to equal the price obtained by dividing the Exercise Price immediately prior to such adjustment by the Adjustment Fraction; provided, that such adjustments shall be made only if the number of Warrant Shares
for which the Warrants are exercisable determined from such adjustment shall be greater than the number of Warrant Shares for which the Warrants are exercisable in effect immediately prior to the Dilutive Issuance. 
  
 (iii) Promptly after any adjustment in the Exercise Price
pursuant to this Section 1, the Company shall give written notice to the Holders of the Exercise Price following such adjustment, together with a schedule of computations of such adjustment and confirmation from the Company’s auditors of such
adjustment. 
  

	2.	Exercise of Warrants. 

  
 (a) General. Upon satisfaction of the conditions set forth herein, the Warrants may be exercised by Holder’s delivery to the Secretary of the
Company of a written notice of exercise executed by Holder (the “Notice of Exercise”). The Notice of Exercise shall be substantially in the form set forth as Exhibit A, attached hereto and made a part hereof, and shall identify the number
of Warrants that are being exercised. 
  
 (b) Partial
Exercise. Holder may exercise Warrants to purchase fewer than all of the Warrant Shares then exercisable, but such exercise may not be made for (i) if prior to an IPO, less than 100,000 Warrant Shares or the total remaining Warrant Shares
subject to the Warrant, if less than 100,000 shares or (ii) if after an IPO, less than the maximum amount of shares of Common Stock that could be sold by Holder pursuant to Rule 144 under the Securities Act of 1933, as amended, during the calendar
month of such exercise or the total remaining Warrant Shares subject to the Warrant, if less than such maximum amount. 
  
 (c) Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of the Warrants.
With respect to any fraction of a share called for upon the exercise of the Warrants, an amount equal to such fraction multiplied by the current Warrant Price shall be paid in cash to Holder. 
  
 (d) Due Diligence. Upon three days advance written notice, Holder
shall be entitled to perform reasonable due diligence of Company in connection with Holder’s proposed exercise of Warrants. All due diligence shall be performed during normal business hours and in a manner 

  

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so as to minimize disruption to Company. All information obtained in due diligence shall be subject to a confidentiality agreement reasonably acceptable to
Company. Holder’s right to conduct due diligence is personal to Holder and nonassignable and may only be exercised by Holder three times in any twelve-month period. 
  

	3.	Termination of Warrants. 

  
 Notwithstanding any provision contained in this Agreement to the contrary, the Warrants shall not be exercisable either in whole or in part from and after
5:00 p.m., Atlanta, Georgia time, on the 10th anniversary of the Effective Date. 
  

	4.	Early Termination. 

  
 If at any time the Company proposes to (a) sell, lease, exchange or convey all or substantially all of its property, business or assets to any other
entity, (b) liquidate, dissolve or wind up the Company, whether voluntarily or involuntarily or (c) merge with or into any other corporation or effect a reorganization in a transaction in which the shareholders of the Company immediately before the
transaction own, directly or indirectly, immediately after the transaction less than a majority of the outstanding voting securities of the surviving entity (or its parent) (each of the events listed in (a)-(c) shall be referred to individually as
an “Early Termination Event”), then the Company shall give Holder twenty (20) days notice of the proposed effective date of any Early Termination Event. All unexercised Warrants will terminate unless exercised by the effective date of any
Early Termination Event. In the event the Company proposes to engage in an initial public offering whereby the Common Stock will be available for purchase by the public at a valuation of the Company at no less than $150,000,000 and with aggregate
cash proceeds to the Company of at least $20 million (the “IPO”), then the Company may purchase the Warrants at a purchase price determined in accordance with Schedule 4. In the event (i) Holder has breached any material provision of the
Senior Secured Convertible Promissory Note, Senior Secured Convertible Note Purchase Agreement, Rights Agreement and Security Agreement between the Company and Holder of even date herewith, and has failed to cure such breach within 20 days after
receipt of written notice of such breach (the “Cure Period”); or (ii) of a Section 11.2 Event (as defined in the Rights Agreement by and between the Holder and the Company of even date herewith), all unexercised Warrants will terminate
immediately. In addition, the Company may not exercise any unexercised Warrants during the Cure Period. 
  

	5.	Assignment of Warrants. 

  
 (a) General. Except as otherwise provided in this Section 5, the Warrants are not assignable or transferable by Holder. 
  
 (b) Assignments to Affiliates. Subject to compliance with applicable
laws, this Warrant and all rights hereunder are transferable, in whole or in part, at the office or agency of the Company, by Holder in person or by duly authorized attorney, to any Affiliate of Holder other than Travelocity.com L.P. or its
successors, assigns or direct or indirect wholly-owned subsidiaries upon surrender of this Warrant and the Assignment Form attached hereto properly endorsed. For purposes of this Agreement, the term “Affiliate” shall have the meaning
ascribed to such term in Rule 405 of the Securities Act of 1933, as amended. 
  

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 (c) Assignment to Third Party. Subject to compliance with applicable laws, Holder may transfer the
Warrant and all rights hereunder in the event such transfer is at least five years after the Effective Date and BCD Technology S.A. (“BCD”) and its Affiliates in the aggregate no longer own at least 51% of the capital stock of the Company
as follows: 
  
 (i) In the event that Sabre
desires to assign or transfer in whole or in part this Warrant and rights hereunder (the “Sabre Offered Warrant”), unless a transfer is permitted pursuant to Section 5(b), Sabre agrees to first give written notice to BCD and Hogg Robinson
Holdings BV (“Hogg”) (the “Sabre First Offer Notice”) of its intent to sell the Sabre Offered Warrant, and to negotiate with BCD and Hogg in good faith the price and corresponding terms of the pro rata purchase by BCD and
Hogg of the Sabre Offered Warrant. BCD and Hogg shall either jointly or individually provide Sabre with a proposal as to the final price and terms of such purchase by the forty-fifth (45) day after the Sabre First Offer Notice. In the event Sabre
accepts a proposal from BCD and/or Hogg (such accepted proposal shall be the “Final Stakeholder Proposal”), each of BCD and Hogg shall have the right to participate pro rata in such purchase regardless of whether it was such
party’s proposal that was accepted. In the event that either BCD or Hogg does not purchase its entire pro rata portion of the Sabre Offered Warrant, the other of BCD or Hogg shall be notified thereof and shall have three (3) days to
agree and provide notice in writing to purchase all or part of the remaining Sabre Offered Warrant pursuant to the terms of the Final Stakeholder Proposal. In the event that thereafter, BCD and Hogg have not agreed to collectively purchase the
entirety of the Sabre Offered Warrant, Sabre shall provide notice to the Company thereof and the Company shall have fifteen (15) days to agree and provide notice in writing to purchase such remaining shares pursuant to the terms of the Final
Stakeholder Proposal. The transfer of the Sabre Offered Warrant to BCD, Hogg and the Company hereunder shall be free and clear of any liens, claims and encumbrances (other than the terms of this Agreement) pursuant to such documentation as BCD, Hogg
and the Company, as applicable, shall reasonably require. The Company covenants and agrees that in the event of a pro rata purchase of the Sabre Offered Warrant by BCD and Hogg pursuant to this Section 2(c), the Company shall issue such
individual Warrants as necessary to effect such purchase. 
  
 (ii) In the event Sabre does not accept the joint or individual proposals from BCD and/or Hogg, Sabre shall notify BCD and Hogg in writing within fifteen (15) days after receipt of such proposals that their final
price and terms have been rejected. In the event such proposal(s) are rejected, Sabre agrees to give written notice to the Company thereof (the “Rejection Notice”) and shall negotiate with the Company in good faith the price and
corresponding terms of the purchase by the Company of the Sabre Offered Warrant. The Company shall provide Sabre with a proposal as to the final price and terms of such purchase (the “Final Company Proposal”) by the fifteenth (15) day
after the Sabre Rejection Notice (the “Sabre Third Party Date”). In the event Sabre accepts the Final Company Proposal, the transfer of the Sabre Offered Warrant to the Company hereunder shall be free and clear of any liens, claims and
encumbrances (other than the terms of this Agreement) pursuant to such documentation as the Company shall reasonably require. In the event Sabre does not accept the Final Company Proposal, Sabre shall notify the Company in writing within fifteen
(15) days that its final price and terms have been rejected. 
  
 (iii) In the event Sabre rejects any and all proposals by BCD, Hogg and the Company as to the final price and terms for the purchase of the Sabre Offered Warrant, Sabre 

  

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may sell the Sabre Offered Warrant to a third party or parties (the “Sabre Third Party Sale”); provided, however, that any Sabre Third Party Sale
must be evidenced by a letter of intent which must be signed within six (6) months of the Sabre Third Party Date and the contemplated transaction must be completed within one (1) year of the Sabre Third Party Date. The Sabre Third Party Sale shall
be for a price not less than 95% of the highest proposal as to the final price and terms offered by BCD and/or Hogg and the Company. In addition, the transfer of the Sabre Offered Warrant to the third party or parties may only be made as long as (i)
the transfer does not have an adverse regulatory or legal effect on the Company or any subsidiary or related entity, and (ii) each transferee agrees in writing to be bound by the terms of this Agreement. 
  
 (iv) If the consideration offered by the third party or
parties in the Sabre Third Party Sale involves property other than cash, for purposes of Section 5(c), such property shall be deemed to be cash in an amount equal to the Equivalent Value of the property. Sabre and the Company shall initially
negotiate with each other to agree upon the Equivalent Value within thirty (30) days of the date of the letter of intent for such Sabre Third Party Sale. In the event that Sabre and the Company cannot reach an agreement on the Equivalent Value
within such 30 day period, the Equivalent Value will be determined by two appraisers, one chosen and paid for by Sabre and one chosen and paid for by the Company. If the two appraisal values (the “Appraisal”) differ by 10% or less (such
percentage difference to be computed by subtracting the lesser of the Appraisals from the greater of the Appraisals and dividing that difference by the greater of the Appraisals), then the Equivalent Value of the property shall equal the average of
the two Appraisals. In the event that the Appraisals vary by more than 10%, a third appraiser shall be chosen by the initial two appraisers to conduct an independent appraisal of the property, and on the basis of that independent appraisal, the
third appraiser shall, in the exercise of its own professional judgment, determine which of the two Appraisals is the most commercially reasonable, and that Appraisal shall be the Equivalent Value. The costs of such third Appraisal shall be borne by
the Company. 
  

	6.	Medium and Time of Payment of Warrant Price. 

  
 (a) General. The Warrant Price shall be payable by Holder upon exercise of the Warrants and shall be paid, at the Company’s sole option, in
either cash (by certified or official bank check or wire transfer), shares of the Common Stock (or by instructing the Company to retain shares otherwise issuable upon exercise of the Warrants as payment), other property or services acceptable to the
Board of Directors as allowed by applicable law, or any combination thereof. 
  
 (b) Payment in Shares of the Common Stock. If Holder pays all or part of the Warrant Price with shares of the Common Stock (including shares otherwise issuable upon exercise of the Warrants), the following
conditions shall apply: 
  
 (i) If such shares
had previously been issued to Holder, Holder shall deliver to the Secretary of the Company a certificate or certificates free and clear of all liens, claims or encumbrances for shares of the Common Stock duly endorsed for transfer to the Company
with signature guaranteed by a member firm of a national stock exchange or by a national or state bank (or guaranteed or notarized in such other manner as the Board of Directors may require); 
  

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 (ii) Such shares (including shares otherwise issuable upon exercise of the Warrants)
shall be valued on the basis of the fair market value of the Common Stock on the date of exercise which shall be deemed to be the average of the daily closing prices of one share of the Common Stock for the 15 consecutive business day period ending
on the day before the day in question as reported on the NASDAQ or such other exchange or inter-dealer quotation system or over-the-counter market on which the Common Stock is then listed for trading, provided that if the Common Stock is not listed
on a national securities exchange or on an interdealer quotation system and is not regularly traded in the over-the-counter market, then the Company and Holder shall determine the fair market value of the Common Stock through good faith negotiations
based upon all relevant available facts, which may include opinions of independent experts as to value and may take into account any recent sales and purchases of such Common Stock to the extent they are representative (the “Market
Price”); and 
  
 (iii) If Holder delivers
Common Stock with a value that is less than the Warrant Price, then Holder shall pay the balance of the Warrant Price in a form allowed under subsection (a) above. 
  
 (c) Payment of Taxes. Any issue tax or incidental expense in respect of the issuance of the certificates for shares
of Common Stock upon the exercise of this Warrant shall be paid by the Company. Company shall not be required to pay any transfer tax or other similar charge imposed in connection with the issue of any certificate for shares of Common Stock in any
name other than that of Holder, and in such case Company shall not be required to issue or deliver any stock certificate until such tax or other charge has been paid or it has been established to the satisfaction of Company that no such tax or
charge is due. 
  

	7.	Anti-Dilution Adjustments. 

  
 (a) Stock Splits and Combinations. If the Company shall at any time subdivide the outstanding shares of Common Stock or effect a forward stock
split by issuing stock dividends, then the number of shares of Common Stock for which this Warrant is exercisable immediately prior to that subdivision (the “Number of Warrant Shares”) shall be proportionately increased and the purchase
price therefor proportionately decreased, and if the Company shall at any time combine the outstanding shares of Common Stock, then the Number of Warrant Shares shall be proportionately decreased and the purchase price therefor proportionately
increased. Any adjustment under this Section 7 shall become effective at the close of business on the date the subdivision or combination becomes effective. 
  
 (b) Cash Dividends. If the Company shall at any time pay any cash dividends, then the Number of Warrant Shares shall be multiplied by a fraction
the numerator of which shall be the Market Price of the Common Stock immediately prior to such cash dividend and the denominator shall be the Market Price of the Common Stock immediately after such cash dividend and the Exercise Price shall be
multiplied by a fraction the numerator of which shall be the Market Price of the Common Stock immediately after such cash dividend and the denominator shall be the Market Price of the Common Stock immediately prior to such cash dividend. 

 

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 (c) Reclassification, Exchange and Substitution. If the Common Stock issuable on exercise of this
Warrant shall be changed into the same or a different number of shares of any other class or classes of stock, whether by capital reorganization, reclassification, or otherwise (other than a subdivision or combination of shares provided for above),
then the Holder of this Warrant shall, upon its exercise, be entitled to receive, in lieu of the Common Stock which the Holder would have become entitled to receive but for such change, that number of shares of such other class or classes of stock
which is equivalent to the number of shares of Common Stock that would have been subject to receipt by the Holder on exercise of this Warrant immediately prior to that change. 
  
 (d) Reorganizations, Mergers, Consolidations or Sale of Assets. If at any time there shall be a capital
reorganization of the Company’s Common Stock (other than a subdivision, combination, reclassification or exchange of shares provided for elsewhere in this Warrant) or merger or consolidation of the Company with or into another corporation, or
the sale of the Company’s properties and assets as, or substantially as, an entirety to any other person or association, then as a part of such reorganization, merger, consolidation or sale, lawful provision shall be made so that the Holder of
this Warrant shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified in this Warrant, the number of shares of stock or other securities or property of the Company, or of the successor corporation or other
person resulting from such merger or consolidation, to which a Holder of the Common Stock deliverable upon exercise of this Warrant would have been entitled on such capital reorganization, merger, consolidation, or sale if this Warrant had been
exercised immediately prior to that reorganization, merger, consolidation, or sale. In any such case, appropriate adjustment shall be made in the application of the provisions of this Warrant with respect to the rights of the Holder after the
reorganization, merger, consolidation, or sale to the end that the provisions of this Warrant (including adjustment of the Number of Warrant Shares then in effect) shall be applicable after that event in a manner as nearly equivalent as may be
practicable. 
  
 (e) Prior Notice. 
  
 (i) At least twenty (20) days’ prior to any (A)
liquidation, dissolution, winding up, or reorganization of the Company, whether voluntary or involuntary, (B) sale of all or substantially all of the assets of the Company, (C) merger or consolidation of the Company with or into any other
corporation, association or person whereafter the stockholders of the Company fail to own fifty per cent (50%) or more of the voting power of the surviving corporation, association or person, or (D) the sale (whether through one sale or multiple
sales to a single person or group of related persons) by the stockholders of the Company of an aggregate of fifty per cent (50%) or more of the capital stock (by voting power) of the Company owned by such stockholders in the aggregate (immediately
prior to such transaction or transactions), the Company shall give a written notice of such impending event to the Holder. 
  
 (ii) In the event the Company fixes a record date for the purpose of determining the holders of any class of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend or other distribution, any security or right convertible into or entitling the holder thereof to receive securities of the Company, or any right to subscribe for, purchase or
otherwise acquire any shares of stock of any class or any other securities or property, or to receive any other right, the Company shall mail to the Holder at least 

  

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twenty (20) days’ prior notice written notice, by first-class mail, postage prepaid, addressed to the Holder at the address of the Holder as shown on
the books of the Company, specifying the date on which any such record is to be taken for the purpose of such dividend, distribution, security or right, and the amount and character of such dividend, distribution, security or right. 
  
 (f) Authorized Shares. The Company covenants that during the period
this Warrant is outstanding and exercisable, it will reserve from its authorized and unissued Common Stock or other securities purchasable hereunder a sufficient number of shares or other securities, if applicable, to provide for the issuance of
Common Stock or other securities upon the exercise of any purchase rights under this Warrant. 
  
 (g) Other Provisions Applicable to Adjustments Under this Section. The following provisions shall be applicable to the making of adjustments of the Warrant Shares for which the Warrants are exercisable and the
Warrant Price at which such Warrant Shares may be purchased upon exercise of this Warrant provided for in this Section 8: 
  
 (i) When Adjustments to Be Made. The adjustments required by this Section 8 shall be made whenever and as often as any event
requiring an adjustment shall occur. 
  
 (ii)
Fractional Interests. In computing adjustments under this Section 8, fractional interests in the Common Stock shall be taken into account to the nearest l/10th of a share. 
  
 (iii) When Adjustment Not Required. If the Company shall establish a record date for the
determination of Holders of record of the Common Stock for the purpose of entitling them to receive a dividend or distribution or subscription or purchase rights and shall, thereafter and before the distribution to stockholders thereof, legally
abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights, then thereafter no adjustment shall be required by reason of the establishment of such record date and any such adjustment previously made in respect
thereof shall be rescinded and annulled. 
  
 (h) Exceptions to
Adjustment of Warrant Price and Warrant Shares. Anything herein to the contrary notwithstanding, the Company shall not make any adjustment of the Warrant Price or the number of Warrant Shares in the case of the issuance of the Warrant, any
adjustment in the number of shares issuable upon exercise of the Warrant or the Warrant Price therefor, or the issuance of shares of Common Stock upon exercise of the Warrant. 
  

	8.	Agreement of Holder. 

  
 Holder acknowledges that it has read this Agreement and understands the following: 
  
 (a) Agreement Restrictions. Certain restrictions may apply with respect to the Warrant Shares acquired by Holder
pursuant to the terms and provisions of this Agreement. 
  
 (b)
Securities Restrictions. The Warrant Shares acquired by Holder upon exercise of the Warrants have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state. If the Company, upon advice of counsel,
determines such action is necessary or desirable, no Warrant Shares shall be issued to Holder unless, at the time of 

  

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issuance, Holder (i) represents and warrants that it will acquire the Warrant Shares for investment only and not for purposes of resale or distribution, and
(ii) makes such further representations and warranties as are deemed necessary or desirable by the Company with regard to holding and resale of the Warrant Shares. Holder shall, upon the request of the Company, execute and deliver to the Company an
agreement or affidavit to such effect. All certificates representing the Warrant Shares issued pursuant to this Agreement shall be marked with the following restrictive legend or similar legend, if such marking, in the opinion of counsel to the
Company, is necessary or desirable: 
  
 The shares represented by
this certificate have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state. Accordingly, these shares may not be sold, hypothecated, pledged or otherwise transferred except (i) pursuant to an
effective registration statement under the Securities Act of 1933, as amended, and any applicable securities laws or regulations of any state with respect to such shares, (ii) in accordance with Securities and Exchange Commission Rule 144, or (iii)
upon the issuance to the Company of a favorable opinion of counsel or the submission to the Company of such other evidence as may be satisfactory to the Company that such proposed sale, assignment, encumbrance or other transfer will not be in
violation of the Securities Act of 1933, as amended, or any applicable securities laws of any state or any rules or regulations thereunder. Any attempted transfer of this certificate or the shares represented hereby which is in violation of the
preceding restrictions will not be recognized by the Company, nor will any transferee be recognized as the owner thereof by the Company. 
  

	9.	Delivery of Stock Certificates. 

  
 As promptly as practical after the date of exercise of the Warrants and the receipt by the Company of full payment therefor, the Company shall deliver to
Holder a stock certificate representing the Warrant Shares acquired by Holder pursuant to its exercise of the Warrants. The Company covenants that all shares of Common Stock which may be issued upon the exercise of this Warrant will be duly
authorized, validly issued, fully paid and nonassessable and free from all taxes, liens, encumbrances, and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 

 

	10.	Notices. 

  
 All notices or other communications hereunder shall be in writing and shall be effective (a) when personally delivered by courier (including overnight
carriers) or otherwise to the party to be given such notice or other communication or (b) on the third business day following the date deposited in the United States mail if such notice or other communication is sent by certified or registered mail
with return receipt requested and postage thereon fully prepaid. The addresses for such notices shall be as follows: 
  
 If to the Company: 
  
 TRX, Inc. 
 6 W. Druid Hills Drive 

Atlanta, Georgia 30329 
 Attention: Chief
Financial Officer 
  

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 with a copy to: 
  

Jeffrey K. Haidet, Esquire 
 303 Peachtree
Street 
 Suite 5300 
 Atlanta,
Georgia 30308 
  
 If to Holder: 
  
 Sabre Investments, Inc. 
 c/o Sabre, Inc. 
 3150 Sabre Drive 

Southlake, Texas 76092-2129 
 Attn: James
E. Murphy, Treasurer 
          James F. Brashear, Corporate Secretary 
  
 with a copy to: 
  
 W. Thomas Carter, Esquire 
 Alston & Bird 
 1201 West Peachtree Street

 Atlanta, Georgia 30309 
  
 If to BCD: 
  
 BCD Technology SA 
 27, Avenue Monterey

 L-2163 Luxembourg 
  
 with a copy to: 
  
 BCD Holdings 
 Utrechtseweg 67 
 3704 HB Zeist 
 The Netherlands 
 Attn: G. L. Boel 
  

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 with a copy to: 
  

BCD Technology SA 
 c/o World Travel BTI

 1055 Lenox Park Boulevard 
 4th Floor 
 Atlanta, Georgia 30319 
 Attn: Chief Executive Officer 
  
 If to Hogg: 
  
 Hogg Robinson Holdings BV 
 Abbey House 
 282 Farnborough Road 
 Farnborough Hampshire GU14 7NJ 
 c/o Hogg
Robinson plc 
 Attn: Chief Executive Officer 
  
 Any party hereto, by notice of the other party hereunder, may change its address for receipt of notices hereunder. 
  

	11.	Miscellaneous. 

  
 (a) The granting of the Warrants and the execution of this Agreement shall not give Holder any rights to similar grants in future years. 
  
 (b) Unless and except as otherwise specifically provided in this Agreement,
Holder shall have no rights of a stockholder with respect to any Warrant Shares covered by the Warrants until the date of issuance of a stock certificate to it for such Warrant Shares. 
  
 (c) If the last or appointed day for the taking of any action or the expiration of any right required or granted herein
shall be a Saturday or a Sunday or shall be a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not a legal holiday. 
  
 (d) If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal regulatory
agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or
invalidated. If for any reason such court or regulatory agency determines that this Agreement will not permit Holder to acquire the full number of Warrant Shares as provided in Section 1 hereof, it is the express intention of the Company to allow
Holder to acquire such lesser number of Warrant Shares as may be permissible without any amendment or modification hereof. 
  
 (e) This Agreement shall be construed and enforced in accordance with the laws of the State of Georgia, without regard to laws regarding conflict of laws.
In the event any legal proceeding is brought to enforce or interpret the provisions of this Agreement, the parties hereby 

  

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agree to submit to the exclusive jurisdiction of the federal, district or state court located in Fulton County, Georgia, which shall be the venue for all
such proceedings. 
  
 (f) This Agreement contains the entire
understanding among the parties and supersedes any prior understanding and agreements between them representing the subject matter hereof. There are no representations, agreements, arrangements or understandings, oral or written, between and among
the parties hereto relating to the subject matter hereof which are not fully expressed herein. 
  
 (g) Section and other headings contained in this Agreement are for reference purposes only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any
provision hereof. 
  
 (h) This Agreement may be executed in
multiple counterparts, each of which shall be deemed an original and all of which shall constitute one agreement, and the signatures of any party or any counterpart shall be deemed to be a signature to, and may be appended to, any other counterpart.

  
 (i) Where the context so requires, the masculine gender shall
be construed to include the female, a corporation, a trust, or other entity, and the singular shall be construed to include the plural and the plural the singular. 
  
 (j) Each party agrees to perform any further acts and to execute and deliver any instruments or documents that may be
necessary or reasonably deemed advisable to carry out the purposes of this Agreement. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date written above.

  

			
	 TRX, INC.

		
	 By:
	 	 /s/ Norwood H. Davis III

	 Name:
	 	 Norwood H. Davis III

	 Title:
	 	 President & CEO

	
	 SABRE INVESTMENTS, INC.:

		
	 By:
	 	 /s/ James E. Murphy

	 Name:
	 	 James E. Murphy

	 Title:
	 	 Treasurer

  

 13 

  
 SCHEDULE 4 

 
 WARRANT PURCHASE PRICE 
  
 FAIR MARKET VALUE 
  
 Fair Value Determination of Warrants 
  
 The fair value of outstanding warrants shall be determined by the Black-Scholes Option
Pricing Model. The type of option is an American call option. Inputs will be as follows: 
  
 Strike Price: $11.0326 subject to equitable adjustment upon any subdivision, stock split, contribution or other similar transaction or antidilution adjustment. 
  
 Share Price: Fair value per share on date of purchase 
  
 Time to Expiration: 3,650 less days elapsed until date of purchase

  
 Volatility: 40% 
  
 Interest Rate: U.S. Treasury Strip that approximates time to expiration

  

  
 EXHIBIT A 
  
 TRX, INC. 
  
 NOTICE OF EXERCISE OF WARRANTS 
  
 This Notice of Exercise is given pursuant to the terms of the Warrant Agreement, dated as of November
    , 2001 (the “Agreement”) between TRX, Inc. (the “Company”) and Sabre Investments, Inc. (the “Holder”), which Agreement is made a part hereof and incorporated herein by reference.

  
 EXERCISE OF WARRANTS. Holder hereby elects to purchase
             shares of Common Stock pursuant to the Agreement. Holder hereby delivers, together with this written statement of exercise, the full Warrant Price with respect to the
purchase of the shares. 
  
 ACKNOWLEDGMENT. Holder hereby
acknowledges that, to the extent it is an “affiliate” of the Company (as that term is defined in Rule 144 promulgated under the Securities Act of 1933, as amended) or to the extent that the shares have not been registered under the
Securities Act of 1933, as amended, or applicable state securities laws, any shares of the Company’s Common Stock acquired by it pursuant to this Notice are subject to, and the certificates representing such shares shall be legended to reflect,
certain trading restrictions under applicable securities laws (including particularly the Securities and Exchange Commission’s Rule 144), all as described in Section 10 of the Agreement and Holder hereby agrees to comply with all such
restrictions and to execute such documents or take such other actions as the Company may require in connection with such restrictions. 
  
 Executed this              day of
                            ,
            . 
  

			
	 Sabre Investments, Inc.:

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	TRX, Inc. hereby acknowledges receipt of this Notice of Exercise and receipt of payment in the form and amount indicated above, all on this
             day of
                            ,
            .
	
	TRX, Inc.:
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 15 

  
 ASSIGNMENT FORM

  
 (To assign the foregoing Warrant, execute this form and supply the
required information. Do not use this form to purchase shares.) 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto: 
  

			
	___________________________________________________________________________________________________________,
		
	 whose address is 
	  	___________________________________________________________________________________________,
	 	  	(Please Print)

  
 and whose Social Security or other
Taxpayer Identification Number is:                         , the foregoing Warrant and all rights thereunder, hereby
constituting and appointing
                                        
to transfer said Warrant on the books of TRX, Inc., with full power of substitution in the premises. 
  
 Dated:                     , 200  . 
  

	
	 Holder’s Signature:
                                        
            

	
	 Holder’s Name:
                                        
                   

	
	 Holder’s Address:
                                        
              

	
	                               ___________________________

	
	                               ___________________________

	         (Please Print)Norwood H. Davis Employment Contract

 Exhibit 10.24 
  
 EMPLOYMENT CONTRACT 
  
 THIS EMPLOYMENT CONTRACT (“Employment Contract”) made as of the 31st day of December, 2004 (the “Effective Date”) between NORWOOD H. DAVIS, III (hereinafter referred to as “Employee”) and TRX, INC., a
Georgia corporation (hereinafter referred to as the “Company”). 
  
 WITNESSETH: 
  
 WHEREAS,
Employee has continuously been employed by the Company as President and Chief Executive Officer since 1999 pursuant to that certain Employment Contract dated as of December 1, 1999, as amended, entered into between Company and Employee (the
“Original Employment Contract”); 
  
 WHEREAS, the
Company desires to continue to employ Employee pursuant to the terms set forth below which are substantially similar to those terms under the Original Employment Contract, and Employee desires to continue to be employed by the Company on such terms;
and 
  
 WHEREAS, the parties intend to supersede all prior
correspondence, letters, negotiations, and agreements between them with respect to the terms set forth herein, including but not limited to, the Original Employment Contract; 
  
 NOW, THEREFORE, it is hereby agreed as follows: 
  
 1. Employment of Employee. The Company hereby employs Employee for a period commencing on the Effective Date of this
Employment Contract and ending on January 3, 2007 (the “Initial Term”). Employee agrees to such employment on the terms and conditions herein set forth and agrees to devote his best efforts to his duties under this Employment Contract and
to perform such duties diligently and efficiently and in accordance with the directions of the Company. 
  
 2. Duties. The Employee shall be employed as President and Chief Executive Officer of the Company, reporting directly to the Chairman of the Board
of the Company. As President and Chief Executive Officer, the Employee shall have overall, day-to-day management responsibilities of the Company, in addition to any specific related duties and responsibilities as may be assigned to him by the
Chairman of the Board of the Company. 
  
 Further, continued
approval by the Board of Directors, the Employee shall continue to be a member of the Board of Directors of the Company, with full voting privileges, and shall serve in such capacity for the Term of this Employment Contract. 
  
 The Employee shall devote substantially all of his business time, attention,
and energies to the Company, shall act at all times in the best interests of the Company, and shall not during the term of this Employment Contract be engaged in any other business activity, whether or not such business is pursued for gain, profit,
or other pecuniary advantage. Notwithstanding the foregoing, this Employment Contract shall not be construed as preventing Employee from 

  

 Page 1 

 
investing his personal assets in any form or manner that will not require any services by Employee in the operation of the affairs of the business in which
such investments are made; provided; however, that Employee shall not be permitted to make any investment in any business competing with the business of the Company. Further, notwithstanding the foregoing provisions, this Employment Contract shall
not be construed as preventing the Employee from serving as a member of the board of directors of any company as long as such service has been approved by the Chairman of the Board and such service does not distract the Employee from his duties
hereunder. 
  
 3. Compensation and Benefits. 
  
 (a) Base Salary. Employee’s annual salary during the first
twelve (12) months of the term of this Employment Contract shall be $375,000 (the “Base Salary”). The Base Salary shall be paid by the Company monthly in arrears or in accordance with the Company’s regular payroll practice. Pursuant
to the Employee’s satisfactory performance reviews, the Employee’s Base Salary may be increased at the sole discretion of the Executive Committee (or other appropriate subcommittee) of the Company’s Board of Directors. 
  
 (b) 2004 Bonus. The Company and Employee have agreed that the amount
of Employee’s 2004 bonus to be determined by the Executive Committee of the Board, in its discretion, will be earned and payable: (i) one half (1/2) of such total bonus amount on March 31, 2005, and (ii) one half ( 1/2) of such bonus amount on July 1, 2005; provided, however, the amount scheduled to be paid July 1, 2005 will be
deemed unearned and thus not payable if the Company has not taken the necessary steps to prepare for an initial public offing of its common stock during the second quarter of 2005. 
  
 (c) Annual Discretionary Bonus. Employee shall be eligible for an annual discretionary bonus under the terms and
conditions of a short-term incentive compensation program to be approved and adopted by the Board of Directors. The Executive Committee (or other appropriate subcommittee) of the Board of the Company shall determine the amount of the Employee’s
annual discretionary bonus, if any, based on both the performance of the Company and the performance of the Employee; provided, however, that to receive the bonus, Employee must be an “active employee in good standing” on the date that the
bonus is paid. It is anticipated that such short-term incentive compensation program will provide for an annual bonus amount of one hundred percent (100%) of Base Salary should stated performance targets be met by Employee. For purposes of this
Employment Contract, an “active employee in good standing” shall mean that Employee (i) has not terminated employment with the Company for any reason (except pursuant to Section 6 (e)); (ii) is not on probation of any kind from the
Company; and (iii) has not received written notice from the Company pursuant to Sections 6 (a) or (b) hereof. 
  
 (d) Long-Term Incentive Compensation. The Employee shall receive a stock option to purchase 300,000 shares of the Company’s common stock on
the earlier of (i) the date of an initial public offering of the Company’s common stock with such option granted at an exercise price per share equal to the initial public offering price; or (ii) September 1, 2005 with such option granted at an
exercise price of $12.24 per share. Fifty percent (50%) of this option shall be exercisable on December 1, 2005 and fifty percent (50%) of this option shall be exercisable 

  

 Page 2 

 
on December 1, 2006. Such option shall be issued under and subject to the Company’s 2000 Stock Incentive Plan as the same may be amended or replaced. In
addition, the Company agrees to instruct the committee administering the 2000 Stock Incentive Plan to permit the Employee to transfer, at his election, the above stock option to an immediate family member, a trust (with beneficiaries of only
immediate family members), or a family limited partnership (with general partners and limited partners of only immediate family members). Such stock options and corresponding option price referenced herein shall be adjusted for any stock splits as
to the number of shares issued. 
  
 (e) Employee Benefits.
The Company shall provide Employee medical coverage and other employee benefits substantially similar to, and on the same basis as, the coverage provided to employees of the Company. 
  
 (f) Vacation. The Company agrees that Employee shall be entitled to five (5) weeks of paid vacation per calendar
year; provided, however, that if this Employment Contract is not in effect for any full calendar year; Employee shall have only a pro rata portion of such paid vacation during that calendar year. 
  
 (g) Automobile Allowance. The Employee shall receive a monthly
allowance of $1,000.00 in cash to assist him in obtaining and maintaining an automobile for his business use. The Employee shall be responsible for any and all costs and liabilities, including insurance, related to such automobile. 
  
 (h) Life Insurance. The Company agrees to reimburse Employee up to
$15,000 each calendar year for actual premiums paid by Employee for the purchase of additional personal life insurance on his life; provided that Employee shall provide to the Company copies of his premium invoices and/or payments for such coverages
prior to reimbursement. Employee acknowledges and agrees that such reimbursement amount shall be taxable ordinary income to him that shall be subject to normal withholdings for federal and state taxes. 
  
 (i) Interest Coverage Payment. As part of Employee’s compensation
arrangement the Company has agreed to pay Employee an amount equal to the interest actually charged to and paid by Employee beginning in year 2004 and continuing during the term of this Employment Contract pursuant to that certain Promissory Note in
the face amount of $3,652,500, dated December 30, 2003 issued by Employee to Bank of America, N.A. (the “Note”) adjusted to reflect, and not adversely impact Employee, the applicable top state and federal income tax rate plus FICA and
Medicare taxes. The parties have agreed that such interest payment by Employee for 2004 was $50,000. 
  
 4. Personnel Policies and Residence. Employee shall conduct himself at all times in a business like and professional manner as appropriate for a
person in his position and shall represent the Company in all respects as complies with good business and ethical practices. In addition, Employee shall be subject to and abide by the policies and procedures of the Company applicable to personnel of
the Company, as adopted from time to time. 
  
 During the Term of
this Employment Contract, Employee shall be permitted to retain his primary residence in Charlottesville, Virginia. The Employee shall be accessible during normal 

  

 Page 3 

 
business day working hours, shall be available to travel at the direction of the Chairman and shall regularly visit the Company’s locations as he deems
necessary to properly manage the Company. 
  
 5. Business
Expenses. Employee shall be reimbursed monthly by the Company for ordinary, necessary and reasonable expenses incurred by him in the performance of his duties for the Company, provided that Employee shall first document said business expenses in
the manner generally required by the Company under its policies and procedures, and in any event, the manner required to meet applicable regulations of the Internal Revenue Service relating to the deductibility of such expenses. 
  
 6. Termination and Renewal. 
  
 (a) Termination Due to Death or Discharge for Good Cause. This
Employment Contract shall terminate immediately upon the death of Employee or upon the discharge of Employee for “good cause”. For the purposes of this Employment Contract, “good cause” means any act of fraud or dishonesty
(whether or not in connection with the Company’s Business as hereinafter defined), competing with the Business of the Company either directly or indirectly, the breach of any provision of this Employment Contract by Employee, failure to comply
with the decisions of the Company, failure to discharge Employee’s duty of loyalty to the Company, or any other matter constituting “good cause” under the laws of the State of Georgia. In the event of termination under this section,
any earned but unpaid Base Salary and any other benefits provided herein shall be paid to Employee up to the effective date of termination of this Employment Contract for whatever reason, including the death of Employee, and not thereafter, subject
to the specific provisions of subsection 3(c). 
  
 (b)
Termination Due to Disability. This Employment Contract also shall terminate immediately upon written notice to Employee if Employee shall at any time be unable to perform the essential functions of his job hereunder, by reason of a physical
or mental illness or condition, with or without reasonable accommodation, for a continuous period of three (3) consecutive calendar months. In the event of termination due to disability under this section, any earned but unpaid Base Salary and any
other benefits provided herein shall be paid to Employee up to the effective date of termination of this Employment Contract for whatever reason, including the death of Employee, and not thereafter, subject to the specific provisions of subsection
3(c). 
  
 (c) Termination by the Company Without Good
Cause. If the Company terminates this Employment Contract without good cause during the Initial Term, the Company shall pay the Employee any earned but unpaid Base Salary accrued through the date of termination plus the Base Salary and benefits
due the Employee for the remainder of the Initial Term. In the event the Company terminates the Employment Contract without good cause after the end of the Initial Term but during the Term of this Employment Contract, the Company shall either give
the Employee six (6) months’ advance notice of such termination or pay to the Employee an amount equal to six (6) months’ of Base Salary, in addition to any earned but unpaid Base Salary accrued through the date of termination. In addition
to the foregoing, upon a termination of Employee’s employment by the Company without good cause, any stock option set forth in Section 3(d) that has not been granted shall be deemed granted and all stock options previously granted to Employee
by the Company shall immediately become exercisable. 
  

 Page 4 

 (d) Voluntary Termination by the Employee. If the Employee terminates this Employment Contract
within the Initial Term, he shall be liable to the Company for any and all expenses, costs and other damages of the Company resulting therefrom. 
  
 (e) Termination Upon Expiration of Term. If not otherwise terminated hereunder, the Employment Contract shall terminate at the end of the Initial
Term; however, prior to the expiration of the Initial Term, the Company and the Employee may elect, in writing, no later than six (6) months prior to the expiration of the Initial Term or any subsequent term, to renew this Employment Contract for
successive one (1) year terms (which successive terms, if elected, shall together with the Initial Term constitute the “Term” of the Employment Contract). 
  
 (f) Termination Upon Change of Control. In the event of a “Change of Control” (as defined pursuant to the
2000 Stock Incentive Plan, as amended from time to time), Employee shall have the right to terminate this Employment Contract by sending written notice of such termination to the Company within sixty (60) days after Employee receives notice of the
occurrence of such Change of Control. Such written notice by Employee shall contain the proposed termination date which shall be no less than sixty (60) days and no more than one- hundred twenty (120) days after the Company’s receipt of such
notice. In the event Employee sends notice of termination pursuant to this Section 6(f), then on the termination date: 
  
 (i) the Company shall pay Employee his Base Salary for the remainder of the Initial Term, or if the Initial Term has expired and this
Employment Contract has been renewed pursuant to Section 6(e), the remainder of the current renewal term; 
  
 (ii) the Company shall pay Employee a pro rata portion of the interest coverage payment in the amount as determined pursuant to Section
3(i) for the year in which the Change of Control occurs if such bonus has not already been paid to Employee for such year; 
  
 (iii) in the event the stock option set forth in Section 3(d) has not been granted, such stock option shall be granted on the termination
date; 
  
 (iv) the stock options granted pursuant
to Sections 3(d) and 6(f)(iii) above that have not vested, shall become immediately exercisable. 
  
 (g) Obligations upon Termination. Upon termination of this Employment Contract for any reason, any and all promissory notes by Employee, immediate
family members, a trust (with beneficiaries of only immediate family members), or a family limited partnership (with general partners and limited partners of only immediate family members), in favor of the Company shall become due and payable within
sixty (60) days of the effective date of termination. 
  
 7.
Restrictive Covenants. 
  
 (a) Covenants to Prior
Employers. Upon execution of this Employment Contract, the Employee hereby represents that he is not a party to, subject to or otherwise covered by any agreement or understanding (written or oral) with a prior employer that would restrict or in
any manner limit the performance of his duties under this Employment Contract. Employee acknowledges that he has been instructed by the Company not to reveal or use any trade secret 

  

 Page 5 

 
information from any former employer or reveal or use confidential information in violation of any agreement with any former employer. 
  
 (b) Acknowledgment of Damage Resulting From Employee’s Competition
with the Company. Employee understands and acknowledges that the Company and its related entities are engaged in the business of providing travel arrangement, reservation, ticketing and related services and products (the “Business”),
and that because of his position with the Company, he has or will obtain (i) intimate knowledge of the Business and including, but not limited to, knowledge of “Confidential Information” (as hereinafter defined), and (ii) knowledge of and
relationships with the customers and suppliers used in connection with the Business of the Company and its related entities. Employee agrees and acknowledges that such knowledge, access, and relationships are such that if Employee were to compete
with the Company or its related entities engaged in the Business, by engaging in the Business within the Restricted Territory (as hereinafter defined) at any time during the two (2) year period from the date of Employee’s termination of
employment with the Company, the Company or its related entities would suffer harm, and the benefits that the parties bargained for under this Employment Contract would be severely and irreparably damaged. Further, Employee acknowledges and agrees
that this Employment Contract, and the covenants not to solicit or compete contained herein, were a fundamental element of the transactions contemplated by this Employment Contract and that the transactions contemplated therein would not have been
consummated in the absence of this Section 7. Employee agrees that the covenants contained in this Section 7 are reasonable and necessary to protect the confidentiality of the Trade Secrets, and other “Confidential Information” concerning
the Company acquired by Employee. 
  
 For purposes of this
Employment Contract, “Trade Secret” shall be as defined by applicable state law. The provisions of this Section shall be interpreted so as to protect those trade secrets and “Confidential Information,” and to secure for the
Company the exclusive benefits of the work performed on behalf of the Company by the Employee under this Employment Contract, and not to unreasonably limit his ability to engage in employment and consulting activities in noncompetitive areas which
do not endanger the Company’s legitimate interests expressed in this Employment Contract. Employee also understands and agrees that the Company can reasonably amend the definition of the Business or the scope of the Business at any time upon
notice to Employee. For purposes of this Employment Contract, the term “Restricted Territory” shall mean the United States of America, which the parties agree is a reasonable and necessary geographical limitation due to the nature of the
Business. 
  
 (c) Covenant Not to Compete with the Company.
Employee agrees that, during the term of his employment under this Employment Contract and for a period of two (2) years following the termination of his employment under this Employment Contract for whatever reasons, with or without “good
cause” or otherwise, Employee will not, directly or indirectly, expressly or tacitly, for himself or on behalf of any entity anywhere within the Restricted Territory, (i) act as an officer, manager, advisor, executive, controlling shareholder,
or consultant to any business in which his duties at or for such business include oversight of or actual involvement in providing services which are competitive with the services or products being provided or which are being produced or developed by
the Company or its related entities, or are under investigation by the Company or its related entities at the termination of this Employment Contract, (ii) recruit investors on behalf of an entity which engages in activities which are 

  

 Page 6 

 
competitive with the services or products being provided or which are being produced or developed by the Company or its related entities, or are under
investigation by the Company or its related entities at the termination of this Employment Contract, or (iii) become employed by such an entity in any capacity which would require Employee to carry out, in whole or in part, the duties Employee has
performed for the Company or its related entities which are competitive with the services or products being provided or which are being produced or developed by the Company or its related entities, or are under active investigation by the Company or
its related entities at the termination of this Employment Contract. 
  
 (d) Nonsolicitation of Customers. During Employee’s employment with the Company, Employee shall not, directly or indirectly without the Company’s prior written consent, contact or solicit any customers or clients of the
Company of its related entities, or prospective customers with whom the Company or its related entities have solicited business within the last twelve (12) months and with whom Employee had material contact (“Customers”), for business
purposes unrelated to furthering the Business of the Company or its related entities. For a period of two (2) years following termination of Employee’s employment with the Company, Employee shall not, directly or indirectly, (i) contact,
solicit, divert or take away, any Customer for purposes of, or with respect to, selling a product or service which competes with the Business, or (ii) take any affirmative action in regard to establishing or continuing a relationship with a Customer
for purposes of making or which directly or indirectly results in, a sale of a product or service which competes with the Business. 
  
 (e) Nonsolicitation of Employees. Employee shall not at any time within two (2) years after the termination of his employment, directly or
indirectly, solicit, employ, or endeavor to entice away from the Company or its related entities any person who is or has been an employee of the Company or its related entities during the Employee’s employment or during the two-year
nonsolicitation period. 
  
 (f) Confidentiality. Employee
hereby acknowledges and agrees that during the Employment Contract, Employee will have access to Trade Secrets and “Confidential Information” of the Company or its related entities, Employee also acknowledges that Employee will not
disclose or use, directly or indirectly, any Trade Secrets Employee obtains during the course of Employee’s employment related to the Business for two (2) years from the date of Employee’s termination of employment with the Company.
Employee also recognizes that the services performed by Employee hereunder are special, unique and extraordinary and that by reason of Employee’s employment with the Company, Employee will receive, develop, or otherwise acquire
“Confidential Information” (as hereinafter defined). Except as required by the pursuit of Employee’s duties with the Company or as it is authorized in writing by the Company, Employee acknowledges that Employee will not disclose or
use, directly or indirectly, any Confidential Information related to the Business during the course of Employee’s employment and for a period of two (2) years after the date of Employee’s termination under this Employment Contract.

  
 The term “Confidential Information” shall mean and
include any information, data and know-how relating to the Business of the Company or its related entities that is disclosed to Employee by the Company or known to Employee as a result of Employee’s relationship with the Company and not
generally within public domain (whether constituting a Trade Secret or 

  

 Page 7 

 
not), including without limitation, all administrative procedures, product development and technical data, sales and/or marketing information, customer
account records, payment plans, training and operations material, memoranda and manuals, personnel records, pricing information, and financial information concerning or relating to the Business and/or the Customers, employees and affairs of the
Company or its related entities. 
  
 (g) Severability of
Provisions. In the event any or all of the covenants of this Section 7 are deemed overly broad, the parties hereto agree that the covenants shall be enforced to the extent that they are not overly broad. 
  
 8. Products, Notes, Records and Software. All memoranda, notes,
records and other documents and computer software made or compiled by Employee or made available to him during the term of this Employment Contract concerning the Business of the Company or its related entities, including, without limitation, all
customer data, billing information, service data, and other technical material of the Company or its related entities, shall be the Company’s property and shall be delivered to the Company within two (2) days of the termination of this
Employment Contract. 
  
 9. Ownership of Inventions.

  
 (a) Disclosure to Company. Employee agrees to disclose
promptly, in writing, to the Company’s Board of Directors any patentable or unpatentable, copyrightable or uncopyrightable, idea, invention, work of authorship (including, but not limited to computer programs, software and documentation),
formula, device, improvement, method, process or discovery (each, an “Invention”) which relates to the Company’s business that Employee conceives, makes, develops, or works on, in whole or in part, solely or jointly with others during
the term of Employee’s employment regardless of whether (i) such invention was conceived, made, developed or worked on during Employee’s regular hours of employment or his time away from work; (ii) the Invention was made at the suggestion
of the Company; or (iii) the Invention was reduced to drawing, written description, documentation, models or other tangible form. 
  
 (b) Made For Hire Status of the Inventions. It is expressly agreed that the Inventions created by Employee hereunder shall be considered specially
ordered or commissioned “works made for hire”, as such term is defined under the United States Copyright Act of 1976, as amended (the “Act”), and that such works and the copyright interests therein and thereto shall belong solely
and exclusively to the Company and shall be considered the property of the Company for purposes of this Employment Contract. To the extent that such works do not constitute “works made for hire” under the Act, Employee, in consideration of
$1.00 and other good and valuable consideration, the receipt and adequacy of which hereby are acknowledged, hereby irrevocably assigns to the Company, its successors and assigns, without royalty or any other further consideration, (i) all rights,
title and interests in and to the copyrights of the Inventions and all renewals and extensions of the copyrights that may be secured under existing or future laws, and (ii) all other rights, title and interests he may have in the Inventions.
Accordingly, the Company will have the right to register, in the office of the Registrar of Copyrights of the United States, the Inventions in the Company’s name as the owner and author of such Inventions. Employee shall, upon request by the
Company and at the Company’s expense, promptly execute, acknowledge or deliver any documents or instruments deemed 

  

 Page 8 

 
reasonably necessary by the Company to document, enforce, protect or otherwise perfect the Company’s copyright and other interests in the Inventions.

  
 (c) Assignment to Company. Without limiting the
generality or effect of any other provision of this Employment Contract, Employee agrees to assign to the Company without royalty or any other further consideration his entire right, title and interest in and to any Invention Employee is required to
disclose hereunder. 
  
 (d) Records. Employee agrees to
make and maintain adequate and current written records of all Inventions covered by this Employment Contract. These records shall be and remain the property of the Company. 
  
 (e) Patents and Proprietary Rights. Employee agrees to assist the Company in obtaining, maintaining, and enforcing
patents and other proprietary rights in connection with any Invention covered this Employment Contract for which the Company has or obtains any right, title or interest. Employee further agrees that his obligations under this subsection shall
continue beyond the termination of the term of this Employment Contract, but if Employee is called upon to render such assistance after the termination of the term of this Employment Contract, Employee shall be entitled to a fair and reasonable rate
of compensation for such assistance. Employee shall, in addition, be entitled to reimbursement of any out-of-pocket expenses incurred at the request of the Company relating to such assistance. 
  
 (f) Other Assignments or Contracts. Employee represents that there are
no other contracts to assign inventions that are now in existence between the Employee and any former employer or other person or entity. Employee further represents that he has no other employments or undertakings which might restrict or impair his
performance of this Employment Contract. 
  
 10. Applicable
Law. This Employment Contract is being executed in the State of Georgia and shall be construed and enforced in accordance with the laws of said jurisdiction. 
  
 11. Waiver of Breach. The waiver by the Company of a breach of any provision of this Employment Contract by Employee
shall not operate or be construed as a waiver of any subsequent breach by Employee. 
  
 12. Successors and Assigns. This Employment Contract shall inure to the benefit of the Company, its subsidiaries and affiliates, and their respective successors and assigns. This Employment Contract and
benefits hereunder are personal to Employee and may not be assigned or transferred by Employee. 
  
 13. Entire Agreement. This instrument contains the entire agreement of the parties and supersedes all prior agreements regarding Employee’s
employment by the Company, including, but not limited to, oral discussions, letter agreements, or any other document concerning the possibility of employment with the Company. This Employment Contract may not be changed orally but only by an
agreement in writing signed by the party against whom enforcement of any waiver, changes, modification, extension, or discharge is sought. 
  

 Page 9 

 14. Invalidity of any Provision. It is the intention of the parties hereto that the provisions of
this Employment Contract shall be enforced to the fullest extent permissible under the laws and public policies of each state and jurisdiction in which such enforcement is sought, but that the unenforceability (or the modification to conform with
such laws or public policies) of any provision hereof shall not render unenforceable or impair the remainder of this Employment Contract which shall be deemed amended to delete or modify, as necessary, the invalid or unenforceable provisions. The
parties further agree to alter the balance of the Employment Contract in order to render the same valid and enforceable. 
  
 15. Amendment for AJCA. The Company and Employee intend that any provision of this Employment Contract providing for the deferral of compensation
(including as related to stock options) comply with the American Jobs Creation Act of 2004 (the “AJCA”). Pursuant to the transition period provided in Internal Revenue Service Notice 2005-1, as amended, upon the issuance of interpretive
regulations the Company and Employee agree to amend this Employment Contract, as needed, to comply with the AJCA and preserve the intent of the parties with respect to the rights, benefits and obligations described herein. 
  
 16. Counterparts. This Employment Contract may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument. 
  

 Page 10 

 IN WITNESS WHEREOF, the parties hereto have executed this Employment Contract under seal as of the date
first above shown. 
  

			
	 EMPLOYEE

	
	 /s/ Norwood H. Davis, III

	NORWOOD H. DAVIS, III
	
	 COMPANY

	
	TRX, INC.
		
	 By:
	 	 /s/ Mike Buckman

		
	 Title:
	 	 Chairman

  
 (CORPORATE SEAL) 
  

 Page 1

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