Document:

exv10w1

Exhibit 10.1

	 	 	 

	 

	 	Andrew BonSalle
	 

	 	Senior Vice President, Capital Markets
	 
	 	 
	 

	 	4000 Wisconsin Avenue, NW
	 

	 	Washington, DC 20016
	 

	 	202 752 3747
	 

	 	202 752 6890 (fax)
	 

	 	andrew_bonsalle@fanniemae.com

December 16, 2010

PHH Mortgage Corporation

1 Mortgage Way

Mount Laurel, NJ 08054

          Re:    Committed Purchase Facility for Early Funding

Ladies and Gentlemen:

          This letter agreement (this “Letter Agreement”) sets forth the agreement between
Fannie Mae and PHH Mortgage Corporation (“PHH”) regarding Fannie Mae’s commitment to accept
delivery and to purchase mortgage loans and pools of mortgage loans from PHH pursuant to the Early
Funding Agreements (as defined in that certain Pricing Terms Letter between Fannie Mae and PHH,
dated as of the date hereof (the “Pricing Terms Letter”)), at any time during the term of
this Letter Agreement, with an aggregate unpaid principal balance, at any one time and from time to
time, of up to $1 billion.

          1. Term of Agreement. The terms set forth in this Letter Agreement shall apply to
all sales and deliveries of mortgage loans and pools of mortgage loans from PHH to Fannie Mae
pursuant to the Early Funding Agreements that are made after the effective date of this Letter
Agreement and prior to the one year anniversary date of the date hereof (the “Scheduled
Termination Date”), subject to the early termination of this Letter Agreement as provided
herein.

          2. Commitment. (a) During the term of this Letter Agreement, subject to the terms
and conditions set forth herein, Fannie Mae shall accept the sale and delivery and shall
purchase mortgage loans and pools of mortgage loans from PHH pursuant to the terms and
conditions of the Early Funding Agreements, provided that Fannie Mae shall not be
committed to purchase mortgage loans or pools of mortgage loans from PHH to the extent that,
after giving effect to the purchase thereof, the aggregate unpaid principal balance of mortgage
loans and pools of mortgage loans considered to be Pending (as defined below) for all Early
Funding Agreements would exceed $1 billion ($1,000,000,000.00). Fannie Mae’s commitment to
purchase loans from PHH pursuant to the terms of this Letter Agreement shall be referred to
herein as the “Commitment”.

 

 

     (b) For purposes of this Letter Agreement, mortgage loans and pools of mortgage loans that
have been purchased by Fannie Mae under the Early Funding Agreements, but pursuant to the terms
thereof the transaction has not been completed (i.e., either (i) for a transaction under the
ASAP Plus Agreements (as defined in the Pricing Terms Letter), the mortgage loans have not been
repurchased by PHH and redelivered to Fannie Mae into a whole loan commitment, or (ii) for a
transaction under the ASAP Sale Agreements (as defined in the Pricing Terms Letter), the
mortgage-backed securities to be created from the pool of mortgages purchased by Fannie Mae have
not been delivered to the identified forward trade counterparty) will be referred to as
“Pending.”

     (c) During the term of this Letter Agreement, Fannie Mae’s purchases of mortgage loans and
pools of mortgage loans from PHH under the Early Funding Agreements shall be at the pricing
levels set forth in the Pricing Terms Letter.

     (d) For the avoidance of doubt, this Letter Agreement is intended to create a binding
commitment by Fannie Mae to purchase mortgage loans and pools of mortgage loans from PHH
pursuant to the terms of the Early Funding Agreements, and as such, any provisions in the Early
Agreements that relate to:

(i) an Early Funding Agreement not being construed as conferring the right to PHH to
deliver mortgage loans or pools of mortgage loans to Fannie Mae or an obligation of
Fannie Mae to accept such deliveries;

(ii) an Early Funding Agreement not being a commitment of funds to PHH; or

(iii) either party to an Early Funding Agreement reserving the right to cancel an
Early Funding Agreement at any time,

shall be superseded by this Letter Agreement, provided, however, that except as
set forth above, this Letter Agreement does not otherwise modify the terms and provisions of the
Early Funding Agreements, including, without limitation, the procedures, and requirements of the
initiation or completion of the delivery and sale of mortgage loans and pools of mortgage loans
pursuant to the Early Funding Agreements or the ability of either party to declare an event of
default under the Early Funding Agreements and exercise any rights and remedies arising
therefrom.

          3. Commitment Fee. (a) PHH shall pay Fannie Mae a commitment fee for providing the
Commitment in the amount specified in the Pricing Terms Letter (such fee, the “Commitment
Fee”).

     (b) The Commitment Fee shall be paid in equal quarterly installments, with payments due on
the date hereof, March 1, 2011, June 1, 2011, and September 1, 2011 (each such date, a
“Payment Date”). Each payment shall represent the portion of the Commitment Fee for the
period starting on such Payment Date and ending on the day immediately preceding the next
Payment Date (or the Scheduled Termination Date, in the case of the last quarterly payment).

 

 

The period from one Payment Date to the day immediately preceding the next Payment Date (or
the Scheduled Termination Date) will be referred to herein as a “Payment Period”.

     (c) Commitment Fees attributable to prior Payment Periods are not refundable in the event
of the early termination of this Letter Agreement. Commitment Fees attributable to the
then-current Payment Period will be refunded to PHH as set forth in Section 5 below. Commitment
Fees shall be wired to Fannie Mae (or in the case of a refund, to PHH) to the account specified
in the Pricing Terms Letter.

          4. Non-Usage Fee. (a) PHH is required to pay a non-usage fee to Fannie Mae in the
event its Average Monthly Balance (defined below) falls below the Minimum Average Monthly
Balance (as defined in the Pricing Terms Letter) for any calendar month during the term of this
Letter Agreement.

     (b) The “Average Monthly Balance” shall be calculated monthly by adding together
the daily aggregate unpaid principal balance of all Pending mortgage loans and pools of mortgage
loans, with that sum divided by the number of days in such month. The Average Monthly Balance
shall be calculated by Fannie Mae using data from Fannie Mae’s internal systems for tracking
early funding transactions. The data from these internal systems will be conclusive and binding
upon PHH and Fannie Mae, absent manifest error.

     (c) In the event the Average Monthly Balance for a month is below the Minimum Average
Monthly Balance, the Average Monthly Balance for such month shall be subtracted from the Minimum
Average Monthly Balance, and the difference multiplied by the Annualized Non-Usage Rate (defined
in the Pricing Terms Letter) based on the actual number of days during such month, to determine
the “Non-Usage Fee.” A Non-Usage Fee for a given month, if applicable, shall be paid by
PHH to Fannie Mae by the fifth business day of the following month, provided that Fannie Mae has
provided PHH at least three business days prior notice of the amount of the Non-Usage Fee that
is due and payable, together with a reasonably detailed calculation of the Non-Usage Fee. Any
Non-Usage Fees paid to Fannie Mae will not be refunded to PHH in the event of the early
termination of this Letter Agreement.

          5. Termination Events; Remedies. (a) The occurrence of any of the following
events shall constitute a “PHH Termination Event”:

	 	(i)	 	the occurrence of any Event of Default as set forth in an Early
Funding Agreement, after the expiration of any applicable cure period;
	 
	 	(ii)	 	the occurrence of a “Material Adverse Change” with
respect to PHH, which shall mean the occurrence of an event that would cause a
material and adverse change in the financial condition, business, or operations
of PHH and its parent or subsidiaries, taken as a whole, as a result of any
event that disproportionately impacts PHH and its parent or subsidiaries
relative to similarly-sized mortgage companies;

 

 

	 	(iii)	 	a downgrade of the credit rating of the senior long-term
unsecured debt of PHH or PHH Corporation: (x) below the level of BB by Standard
& Poor’s Ratings Service, or (y) below the level of Ba2 by Moody’s Investor
Service, Inc;
	 
	 	(iv)	 	PHH’s “Lender Adjusted Net Worth”, as such term is defined in
Subpart A4-2-01 of the Fannie Mae Selling Guide, as it may be amended from time
to time (the “Guide”), decreasing below $500 million;
	 
	 	(v)	 	the failure of PHH to meet the financial eligibility
requirements set forth in Subpart A4-2-01 of the Guide;
	 
	 	(vi)	 	the aggregate unpaid principal balance (“UPB”) of all
outstanding Fannie Mae repurchase and make-whole requests to PHH
(“Repurchase Requests”), as of the end of any calendar month, exceeding
10 percent of PHH’s “Lender Adjusted Net Worth”, as such term is defined in
Subpart A4-2-01 of the Guide; provided, however, that for
purposes of calculating the aggregate UPB of outstanding Repurchase Requests
as of any given date, the amount of the aggregate UPB of outstanding Repurchase
Requests shall be reduced by the amount of “Posted Collateral” on such date
attributable to “Outstanding Repurchase Exposure” that has been posted by PHH
pursuant to that certain Pledge and Security Agreement, dated as of November
20, 2009, between PHH and Fannie Mae;
	 
	 	(vii)	 	the failure of PHH to pay a Commitment Fee or Non-Usage fee to
Fannie Mae in accordance with the terms of this Letter Agreement within three
business days following notice to PHH of such failure; and
	 
	 	(viii)	 	the occurrence of any legislative or regulatory action that causes this
Letter Agreement or the transactions contemplated hereby to be contrary to
applicable law.

(b) The occurrence of any of the following events shall constitute a “Fannie Mae
Termination Event”:

	 	(i)	 	the failure of Fannie Mae to acquire mortgage loans or pools of
mortgage loans from PHH in accordance with the terms of the Commitment; and
	 
	 	(ii)	 	the occurrence of any legislative or regulatory action that
causes this Letter Agreement or the transactions contemplated hereby to be
contrary to applicable law.

     (c) Upon the occurrence of a PHH Termination Event, Fannie Mae may either: (x) waive the
PHH Termination Event and continue with the Letter Agreement in full force and effect, or (y) at
its option, terminate this Letter Agreement upon written notice to PHH. Upon the termination of
this Letter Agreement by Fannie Mae pursuant to a PHH

 

 

Termination Event, Fannie Mae shall refund any pro-rated Commitment Fees paid by PHH to
Fannie Mae that are attributable to the time period after the effective date of the termination,
less any Non-Usage Fees owed by PHH as of the effective date of such termination. PHH shall not
be liable for any direct, indirect, incidental, special, consequential, exemplary or punitive
damages of Fannie Mae in connection with the termination of this Letter Agreement.

     (d) Upon the occurrence of a Fannie Mae Termination Event, PHH may either: (x) waive the
Fannie Mae Termination Event and continue with the Letter Agreement in full force and effect, or
(y) at its option, terminate this Letter Agreement upon written notice to Fannie Mae. Upon the
termination of this Letter Agreement by PHH pursuant to a Fannie Mae Termination Event, Fannie
Mae shall refund any pro-rated Commitment Fees paid by PHH to Fannie Mae that are attributable
to the time period after the effective date of the termination, less any Non-Usage Fees owed by
PHH as of the effective date of such termination. Fannie Mae shall not be liable for any
direct, indirect, incidental, special, consequential, exemplary or punitive damages of PHH in
connection with the termination of this Letter Agreement.

     (e) The early termination of this Letter Agreement will not impact the status of Pending
transactions under the Early Funding Agreements; provided, however, that for the
avoidance of doubt, the termination of other contracts between PHH and Fannie Mae (e.g., the
Early Funding Agreements, the Master Agreement) may impact the status of Pending transactions
under the Early Funding Agreements.

          6. Notices. Any notice or request permitted or required pursuant to this Letter
Agreement must be in writing and sent to the addresses set forth below, or such other address as
a party hereto may from time to time designate, via a means that ensures overnight delivery or
by intra-day messenger, with a copy of such written notice sent via email to the address or
addresses identified below:

	 	 	 	 	 
	 

	 	Fannie Mae: 	 	Ms.
 Renee Schultz, Vice President
	 

	 	 	 	Fannie Mae
	 

	 	 	 	4000 Wisconsin Avenue, NW
	 

	 	 	 	Washington, DC 20016
	 

	 	 	 	renee_r_schultz@fanniemae.com
	 

	 	 	 	early_funding@fanniemae.com
	 

	 	 	 	Telephone: 1-866-944-3863
	 
	 	 	 	 
	 

	 	PHH:
	 	Attn: Mark Johnson
	 

	 	 	 	PHH Mortgage Corporation
	 

	 	 	 	1 Mortgage Way
	 

	 	 	 	Mount Laurel, NJ 08054
	 

	 	 	 	mark.johnson@phhmail.com
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	PHH Mortgage Corporation

 

 

	 	 	 	 	 
	 

	 	 	 	Attn: General Counsel
	 

	 	 	 	1 Mortgage Way
	 

	 	 	 	Mount Laurel, NJ 08054
	 

	 	 	 	legalnotice@phhmail.com

          7. No Assignment. Neither this Letter Agreement nor any rights or obligations
hereunder may be assigned by Fannie Mae or PHH without the prior written consent of the other.
A change of control of PHH shall constitute an assignment of this Letter Agreement.

          8. No Publicity. Except for disclosures required by applicable law, including any
filing with the U.S. Securities Exchange Commission made upon the advice of counsel, no public
announcement concerning the terms of this Letter Agreement shall be made by Fannie Mae or PHH
unless such announcement has been previously agreed upon in writing by both parties. Neither
party shall, in the course of performance of this Letter Agreement or thereafter, use the other
party’s name in any advertising or promotional materials without the prior written consent of
the other party, which consent shall not be unreasonably withheld.

          9. Counterparts. This Letter Agreement may be signed in counterparts, each of
which shall be deemed to be an original and both of which, when taken together, shall constitute
one and the same instrument.

          10. Integration. This Letter Agreement, together with the Pricing Terms Letter,
supersedes all prior or contemporaneous agreements and understandings (whether written or oral)
between PHH and Fannie Mae with respect to the subject matter hereof and thereof.

          11. Governing Law; Amendments to this Agreement. The terms of this Letter
Agreement shall be governed by the laws of the District of Columbia, without regard to its
conflicts of laws rules. Both parties hereby irrevocably consent to the jurisdiction of the
courts in the District of Columbia. No amendment to this Letter Agreement shall be effective
unless it is in writing and signed by both Fannie Mae and PHH.

          12. No Modification of Agreements. (a) This Letter Agreement sets forth the terms
of Fannie Mae’s Commitment to purchase mortgage loans and pools of mortgage loans from PHH
pursuant to the Early Funding Agreements. This Letter Agreement is not intended to modify to
the terms and provisions of the Early Funding Agreements, other than as set forth in Section
2(d) of this Letter Agreement.

     (b) Each of Fannie Mae and PHH reserves their respective rights and remedies under any
other agreement in place between the parties.

          13. No Fiduciary Relationship. Each party acknowledges and agrees that no
fiduciary, advisory, or agency relationship exists between the parties, or is intended to be
created between the parties as a result of this Letter Agreement or any of the transactions
contemplated hereby.

 

 

          14. No Third Party Beneficiaries. Each party agrees that this Letter Agreement is
intended to be solely for the benefit for the parties hereto and is not intended to and does not
confer any benefits upon, or create any rights in favor of, any other person other than the
parties hereto.

          15. Waivers. No waiver of any right, power, or privilege hereunder by a party
shall preclude any other or further exercise thereof or the exercise of any other right, power,
or privilege hereunder by such party, and no exercise of any remedy hereunder by a party shall
constitute a waiver of such party’s right to exercise any other remedy hereunder.

          Please countersign the two (2) enclosed counterparts of this letter to evidence your agreement
with the terms hereof and return one (1) to my attention at the above-listed address.

          Thank you.

	 	 	 	 	 
	 	Yours truly,

FANNIE MAE

 	 
	 	By:  	/s/ Andrew BonSalle
 	 
	 	 	Andrew BonSalle 	 
	 	 	Senior Vice President, Capital Markets 	 
	 

					
	 	

ACCEPTED AND AGREED:

PHH MORTGAGE CORPORATION

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	Treasurerexv10w1

Exhibit 10.1

INDEMNITY AGREEMENT

     This INDEMNITY AGREEMENT (this “Agreement”) is made and entered into as of the ____ day of
_____________, ____, by and between Zix Corporation, a Texas corporation (the “Company”), and
____________________ (the “Indemnitee”).

     WHEREAS, the Indemnitee serves as a member of the Board of Directors of the Company (the
“Board”);

     WHEREAS, in accordance with Texas law and the Company’s charter and bylaws, the Indemnitee, as
a member of the Board, is authorized and directed to undertake certain responsibilities on behalf
of the Company and its stockholders; and

     WHEREAS, the Company believes that the Indemnitee’s undertaking of such responsibilities is
important to the Company and its stockholders, and that the protection afforded by this Agreement
will enhance the Indemnitee’s ability to discharge such responsibilities;

     NOW, THEREFORE, in consideration of the premises and of the Indemnitee providing services to
the Company as a member of its Board and, if applicable, as a member of one or more committees
established by the Board, and intending to be legally bound hereby, the parties hereto agree as
follows:

     1. Certain Definitions:

     (a) Change in Control: shall be deemed to have occurred if (i) any “person”
(as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended), other than a trustee or other fiduciary holding securities under an employee
benefit plan of the Company or a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their ownership of
capital stock of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under said Act), directly or indirectly, of securities of the Company representing 20% or
more of the total voting power represented by the Company’s then outstanding Voting
Securities (other than any such person or any affiliate thereof that is such a 20%
beneficial owner as of the date hereof), or (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board and any new director
whose election by the Board or nomination for election by the Company’s stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a majority thereof,
or (iii) the stockholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation which would result in the
Voting Securities of the Company outstanding

1

 

immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into Voting Securities of
the surviving entity) at least 80% of the total voting power represented by the Voting
Securities of the Company or such surviving entity outstanding immediately after such merger
or consolidation, or the stockholders of the Company approve a plan of complete liquidation
of the Company or an agreement for the sale or disposition by the Company of (in one
transaction or a series of transactions) all or substantially all the Company’s assets.

     (b) Claim: any threatened, pending or completed action, suit or proceeding
(including any mediation, arbitration or other alternative dispute resolution proceeding),
whether instituted by or in the right of the Company or by any other party, or any inquiry
or investigation that the Indemnitee in good faith believes might lead to the institution of
any such action, suit or proceeding, whether civil (including intentional and unintentional
tort claims), criminal, administrative, investigative or other.

     (c) Expenses: include, but are not limited to, attorneys’ fees and all other
costs, expenses and obligations paid or incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or preparing to
defend, be a witness in or participate in any Claim
relating to any Indemnifiable Event. Further, Expenses include, in circumstances where
the payment or reimbursement of Expenses to the Indemnitee creates tax liability for the
Indemnitee, the full amount of such tax liability as well as any “gross up” that may be
necessary to hold the Indemnitee fully harmless from any tax liability attributable to the
reimbursement in respect of taxes.

     (d) Indemnifiable Event: any event or occurrence related to the fact that the
Indemnitee is or was serving as a member of the Board or any committee thereof, or taking
any action or doing anything under the authority and direction set forth in, or otherwise
contemplated by Texas law or other controlling legal authority, the Company’s charter or
bylaws or any resolution or other directive adopted or authorized by the Board.

     (e) Independent Legal Counsel: an attorney or law firm, selected in accordance
with the provisions of Section 3, who has not performed services for the Company or the
Indemnitee during the five years preceding the relevant Indemnifiable Event, other than with
respect to matters concerning the rights of the Indemnitee under this Agreement, or of other
indemnitees under similar indemnity agreements.

     (f) Reviewing Party: any appropriate person or body consisting of a member or
members of the Board or any other person or body appointed by the Board who is not a party
to the particular Claim for which the Indemnitee is seeking indemnification, or Independent
Legal Counsel.

     (g) Voting Securities: any securities of the Company that possess the right to
vote generally in the election of directors.

2

 

     2. Basic Indemnification Arrangement.

     (a) In the event the Indemnitee was, is or becomes a party to or witness or other
participant in, or is threatened to be made a party to or witness or other participant in, a
Claim by reason of (or arising in part out of) an Indemnifiable Event, the Company shall
indemnify the Indemnitee to the fullest extent permitted by applicable law as soon as
practicable but in any event no later than 30 days after written demand is presented to the
Company, against any and all Expenses, judgments, fines, penalties and amounts paid in
settlement (including all interest, assessments and other charges paid or payable in
connection with or in respect of such Expenses, judgments, fines, penalties or amounts paid
in settlement) of such Claim. If so requested by the Indemnitee, the Company shall advance
(within 10 business days of such request) any and all Expenses to the Indemnitee (an
“Expense Advance”).

     (b) Notwithstanding the foregoing, (i) the obligations of the Company under Section
2(a) shall be subject to the condition that the Reviewing Party shall not have determined
(in a written opinion, in any case in which the Independent Legal Counsel referred to in
Section 3 hereof is involved) that the Company is prohibited by applicable law from
indemnifying the Indemnitee, and (ii) the obligation of the Company to make an Expense
Advance pursuant to the second sentence of Section 2(a) shall be subject to the further
condition that, if, when and to the extent that the Reviewing Party determines that the
Company is prohibited by applicable law from indemnifying the Indemnitee, the Company shall
be entitled to be reimbursed by the Indemnitee (who hereby agrees to reimburse the Company)
for all such amounts theretofore paid; provided, however, that if the Indemnitee has
commenced or thereafter commences legal proceedings in a court of competent jurisdiction to
secure a determination that the Indemnitee should be indemnified under applicable law, any
determination made by the Reviewing Party that the Company is prohibited by applicable law
from indemnifying the Indemnitee shall not be binding and the Indemnitee shall not be
required to reimburse the Company for any Expense Advance until a final judicial
determination is made with respect thereto (as to which all rights of appeal therefrom have
been exhausted or lapsed).

     (c) The Company shall use all reasonable efforts to cause the Board to expeditiously
appoint a Reviewing Party to pass upon, and to cause such Reviewing Party to expeditiously
consider and pass upon, any request by the Indemnitee for indemnification and/or an Expense
Advance under this Agreement. If there has not been a Change in Control, the Reviewing
Party shall be selected by the Board, and if there has been such a Change in Control (other
than a Change in Control which has been approved by a majority
of the Board who were directors immediately prior to such Change in Control), the
Reviewing Party shall be the Independent Legal Counsel referred to in Section 3 hereof. If
there has been no determination by the Reviewing Party as to the Company’s ability to
indemnify the Indemnitee, or if the Reviewing Party determines that the Company is
prohibited by applicable law from indemnifying the Indemnitee, the Indemnitee shall have the
right to commence litigation in any court located in (i) the City of Dallas and State of
Texas, so long as the Company remains incorporated under the

3

 

laws of the State of Texas, or
(ii) the City of Wilmington and State of Delaware, following any reincorporation of the
Company under the laws of the State of Delaware, in each case having subject matter
jurisdiction thereof and in which venue is proper seeking an initial determination by the
court that the Company is not prohibited by applicable law from indemnifying the Indemnitee
or challenging any contrary determination by the Reviewing Party or any aspect thereof,
including the legal or factual bases therefor, and the Company hereby consents to service of
process and to appear in any such proceeding. Any determination by the Reviewing Party
shall be conclusive and binding on the Company and the Indemnitee, subject to the rights of
the Indemnitee set forth in the immediately preceding sentence.

     3. Change in Control. If there is a Change in Control of the Company (other than a
Change in Control which has been approved by a majority of the Board who were directors immediately
prior to such Change in Control), then with respect to all matters thereafter arising concerning
the rights of the Indemnitee to indemnity payments and Expense Advances under this Agreement or any
other agreement or Company charter or bylaw provision now or hereafter in effect relating to Claims
for Indemnifiable Events, the Company shall seek legal advice only from Independent Legal Counsel
selected by the Indemnitee and approved by the Company (which approval shall not be unreasonably
withheld). Such counsel shall render its written opinion to the Company and the Indemnitee as to
whether and to what extent the Company is legally permitted to indemnify the Indemnitee under
applicable law. The Company shall pay the reasonable fees and expenses of the Independent Legal
Counsel and shall fully indemnify such counsel against any and all expenses (including attorneys’
fees), claims, liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto.

     4. Indemnification for Additional Expenses. The Company shall indemnify the
Indemnitee against any and all Expenses and, if requested by the Indemnitee, shall (within 10
business days of such request) advance such Expenses to the Indemnitee, which are incurred by the
Indemnitee in connection with any action brought by the Indemnitee for (i) indemnification or
Expense Advances under this Agreement or any other agreement or Company charter or bylaw provision
now or hereafter in effect relating to Claims for Indemnifiable Events, or (ii) recovering under
any directors’ and officers’ liability insurance policies maintained by the Company, regardless of
whether the Indemnitee ultimately is determined to be entitled to such indemnification, Expense
Advance payment or insurance recovery, as the case may be.

     5. Partial Indemnity. If the Indemnitee is entitled to indemnification by the Company
for less than all of the Expenses, judgments, fines, penalties and amounts paid in settlement of a
Claim, the Company shall indemnify the Indemnitee for that portion to which the Indemnitee is
entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that the
Indemnitee has been successful on the merits or otherwise in defense of any or all Claims relating
in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein,
including dismissal without prejudice, the Indemnitee shall be indemnified against all Expenses
incurred in connection therewith.

     6. Presumption; Burden of Proof. In connection with any determination by the
Reviewing Party or any other party as to whether the Indemnitee is entitled to be indemnified or

4

 

receive an Expense Advance hereunder, (i) the presumption shall be that the Indemnitee is so
entitled, and (ii) the Company shall have the burden of proof to establish to the Reviewing Party
by clear and convincing evidence that the Company is prohibited by applicable law from indemnifying
the Indemnitee or effecting an Expense Advance hereunder.

     7. No Presumptions. For purposes of this Agreement, the termination of any claim,
action, suit or proceeding by judgment, order, settlement (whether with or without court approval)
or conviction, or upon a plea of nolo contendere or its equivalent, shall not create a presumption
that the Indemnitee did not meet any particular standard of conduct or have any particular belief
or that a court has determined that indemnification or advancement of Expenses is prohibited or not
permitted by applicable law. In addition, neither the failure of the Reviewing Party to have made
a determination as to whether the Indemnitee has met any particular standard of conduct or had any
particular belief, nor an actual determination by the Reviewing Party that the Indemnitee has
not met such standard of conduct or did not have such belief, prior to the commencement of legal
proceedings by the Indemnitee to secure a judicial determination that the Indemnitee should be
indemnified under applicable law, shall be a defense to the Indemnitee’s claim or create a
presumption that the Indemnitee has not met any particular standard of conduct or did not have any
particular belief.

     8. Nonexclusivity; Subsequent Change in Law or Jurisdiction of Incorporation. The
rights of the Indemnitee hereunder shall be in addition to any rights the Indemnitee may have under
the Company’s charter or bylaws, applicable law, other controlling legal authority, or otherwise.
To the extent that any change in applicable law or other controlling legal authority (whether by
statute or judicial decision) or in the Company’s jurisdiction of incorporation, permits greater,
broader and/or more expansive rights to indemnification and/or advancement of expenses by agreement
than that afforded under the Company’s charter or bylaws and this Agreement, as the foregoing exist
on the date of this Agreement, this Agreement automatically shall be deemed to be amended to
provide the greater, broader and/or more expansive rights afforded by any such change.

     9. Amendments; Waiver. No supplement, modification or amendment of this Agreement
shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar), nor shall any such waiver constitute a continuing waiver.

     10. Subrogation. To the extent of its payments to the Indemnitee under this
Agreement, the Company shall be subrogated to all of the rights of recovery of the Indemnitee, who
shall execute all documents required and shall do everything that may be necessary to effectuate
and secure such rights, including the execution of such documents necessary to enable the Company
effectively to bring suit to enforce such rights.

     11. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors or assigns (including any
direct or indirect successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Company), spouses, heirs, executors and
personal or legal

5

 

representatives. This Agreement shall continue in full force and effect
regardless of whether the Indemnitee continues to serve as a director of the Company.

     12. Severability. The provisions of this Agreement shall be severable in the event
that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) is held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable in any respect, and the validity and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired and shall
remain enforceable to the fullest extent permitted by law.

     13. Governing Law. This Agreement shall be governed by and construed, interpreted and
enforced in accordance with the laws applicable to contracts made and to be performed in the
jurisdiction in which the Company is incorporated at the time of the applicable Indemnifiable
Event, without giving effect to the principles of choice or conflicts of laws.

[Remainder of page intentionally left blank — signature page follows.]

6

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the
date first set forth above.

	 	 	 	 	 
	 	ZIX CORPORATION

 	 
	 	By:  	 	 
	 	 	[Company Representative] 	 
	 	 	[Title] 	 
	 
	 	INDEMNITEE

 	 
	 	
 	 
	 	[Indemnitee Name]

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