Document:

exv10w23

 

Exhibit 10.23

March 16, 2007

Robert Warfield

3470 Merrill Road

Aptos, California 95003

     Re:      Separation Agreement and Release of Claims

Dear Bob:

This letter is to confirm our agreement with you with respect to your separation from Callidus
Software Inc. (“Callidus” or the “Company”). This agreement includes the separation and release
terms that have been previously discussed with you and which are a necessary part of such
agreements with the Company. To ensure that there are no ambiguities, this letter explains in
detail both your rights and obligations and those of the Company upon separation of your employment
and your full release of any and all claims against the Company.

Your employment with Callidus will end upon the close of business August 15, 2007 (“Separation
Date”). Upon your Separation Date we will provide you the following benefits:

	 	1.	 	You will receive a final check with your base salary pay up to and including
your Separation Date and any vacation pay that has accrued to that date, minus
applicable withholding taxes;
	 
	 	2.	 	If you are contributing to the Callidus 401(k) Plan, your contributions will
cease upon your Separation Date;
	 
	 	3.	 	If you are a beneficiary to Callidus’ life insurance coverage, your coverage
will cease upon your Separation Date;
	 
	 	4.	 	Callidus will pay any reasonable Callidus business expenses incurred by you
prior to the Separation Date, so long as you properly submit the appropriate
documentation to Patricia Ducote in Accounting within 30 days of your Separation Date;
	 
	 	5.	 	Vesting on stock options that have been granted to you will cease upon your
Separation Date. You will have 90 days from your Separation Date to exercise any
vested shares. Should you need assistance or have any questions on the process and
necessary items to exercise such shares, please contact Virginia Sajor at (408)
808-6597.
	 
	 	6.	 	If you are participating in the Employee Stock Purchase Plan (ESPP), your
participation will cease on your Separation Date and any money that has been deducted
from your paycheck up to this point will then be refunded to you in your final check.

You understand and agree that Callidus may deduct any unpaid company credit cards (AMEX), phone
cards, and equipment replacement costs for Callidus equipment assigned to you (other than the
notebook computer described below) that has not been returned, from any final amounts owed to you
under your employment or this separation letter. You also understand and agree that you will not
be eligible for a performance or incentive bonus for any services provided by you from April 1,
2007 forward, unless the CEO in his discretion has determined that based on your continued efforts
for Callidus from April 1, 2007 forward you should be eligible for a second quarter 2007 bonus and
documents his determination in writing.

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Callidus and you have agreed to additional benefits to be provided to you, to which you would
otherwise not be entitled, in exchange for you signing a Release of Claims as part of this
separation agreement. Specifically, once you have signed this letter below indicating your
agreement to these terms, and after your Separation Date you have additionally signed the attached
Release of Claims document, and the revocation period has expired, then:

	 	1.	 	Callidus will provide you with the equivalent of an additional 4.5 months of
base pay or $96,412.50 less applicable taxes, withholdings and deductions.
	 
	 	2.	 	Callidus will provide you with an additional $6,040.13 to cover 4.5 months of
COBRA health coverage, less applicable taxes, withholdings and deductions, commencing
on the month following your Separation Date.
	 
	 	3.	 	Callidus will permit you to retain your current Callidus notebook computer.

The Release of Claims document will be in the form as attached hereto, but will be subject to
modifications to the document, if upon the advice of counsel, such modifications are necessary to
comply with applicable law as of the Separation Date. In addition to signing the Release of Claims
document, the additional benefits as outlined on this page 2 are also contingent upon your full
cooperation in the transition of any job duties which you are currently assigned or working on,
your agreement to comply with the obligations and the terms of this separation agreement, your
continued compliance with the attached Employment, Confidential Information and Invention
Assignment Agreement which you have signed, your agreement to work full time on site at the Company
Headquarters in San Jose, California through April 1, 2007 as the Chief Technology Officer, and to
then work as an offsite employee who will be available, responsive and cooperative in supporting
the Company from April 2, 2007 through August 15, 2007. You acknowledge that during your
employment, you may have obtained confidential, proprietary and trade secret information, including
information relating to the Company’s products, plans, designs, employees, and other valuable
confidential information. In accordance with the attached Employment, Confidential Information and
Invention Assignment Agreement, and as a term of this separation agreement, you agree not to
disclose any such confidential information unless required by subpoena or court order, and that you
will first give the Company written notice of such subpoena or court order with reasonable advance
notice to permit the Company to oppose such subpoena or court order if it chooses to do so. You
also agree not to use any such confidential information, employee specific information, company
trade secrets, or proprietary information to recruit or hire employees from Callidus. You further
agree that, for a period of twelve (12) months immediately following the Separation Date, you shall
not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s
employees to leave their employment, take away such employees from the Company, or attempt to so
solicit, induce, recruit, encourage or take away employees of the Company, either for yourself or
on behalf of any other person or entity.

You agree that you will not impugn the business of the Company, including the use of defamatory
statements towards the company, officers, directors, or former or current employees. Callidus
also agrees that it will not impugn you or make defamatory statements about you.

You agree, acknowledge, and understand that material failure by you to meet your
obligations and commitments as outlined herein including, but not

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limited to those regarding confidentiality, non-solicitation, and availability will result in
damages by you to Callidus in the amount of the additional benefits and considerations outlined on
page 2 of this Agreement. If such payments have already been made to you, you agree to immediately
repay the amounts Callidus paid to you. You agree that these legal rights do not prevent
Callidus from pursuing any other legal rights or claims Callidus may have against you, however
Callidus agrees that any repayments you have made to Callidus for such a material failure of your
obligations will be credited towards any other claims which may be brought by Callidus against you.

From April 1, 2007 until August 15, 2007, during the time you are still an employee of Callidus,
you will abide by the provisions of the Callidus Employee Handbook, including the Conflicts of
Interest and Business Opportunities policy, which provides that you will not work, in any capacity,
for a competitor, customer or supplier while employed by Callidus. You are permitted to accept
part time consulting work which is in compliance with the Callidus Employee Handbook Conflict of
Interest and Business Opportunities policy and which does not interfere with your availability to
Callidus.

If, after carefully reviewing these terms and conditions, you wish to accept these terms as
outlined, then please sign below indicating your agreement. Note however that the final Release
of Claims document will be provided to you for signature on your actual Separation Date of August
15, 2007.

We wish you the best of success in your future endeavors.

Sincerely,

/s/ Robert Youngjohns

Robert Youngjohns

Chief Executive Officer

Callidus Software Inc.

	 	 	 	 	 
	Encl. 	Accepted and agreed on March 16, 2007.

 	 
	 	By:  	/s/ Robert Warfield
 	 
	 	 	Robert Warfield 	 
	 	 	 	 
	 

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RELEASE OF CLAIMS

In exchange for the above-mentioned benefits, you, on behalf of your heirs, spouse and assigns,
hereby agree to release Callidus, fully and finally, from any claims of any and every kind, nature
and character, known or unknown, foreseen or unforeseen that you may have against Callidus, its
past and present affiliates, agents, officers, directors, shareholders, employees, attorneys,
insurers, successors and assigns. These claims may include, among others, any claims arising out
of your offer of employment, your employment or Separation of your employment with the Company or
your right to purchase, or actual purchase of shares of stock of the Company, including, without
limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under
applicable state corporate law, and securities fraud under any state or federal law. These claims
may include any claims prohibiting discrimination in employment. This release includes, but is not
limited to, any claims under original and amended versions of Title VII of the Civil Rights Act of
1964; the Civil Rights Act of 1866; the Civil Rights Act of 1991; the California Fair Employment
and Housing Act; the Worker Adjustment and Retraining Notification Act or its California equivalent
(Cal. Labor Code sections 1400-1408; the California Constitution; the California Worker’s
Compensation Act; the Age Discrimination in Employment Act, the Older Workers’ Benefit Protection
Act; the Employee Retirement Income Security Act of 1974; the American with Disabilities Act, and
any common law, tort or contract or statutory claims, and any claims for attorneys’ fees and costs.

By signing this release, you will acknowledge that unknown losses or claims exist or that present
losses may have been underestimated in amount or severity, and that you explicitly took such claims
into consideration in entering into this agreement. You expressly waive and release any and all
rights and benefits under Section 1542 of the Civil Code of the State of California (or any
analogous law of any other state), which reads as follows:

	 	 	A general release does not extend to claims which the creditor does not know or suspect to
exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with debtor.

You fully understand that, if any fact with respect to any matter covered by this separation
agreement including the Release of Claims is found hereafter to be other than or different from the
facts now believed by you to be true, you expressly accept and assume that this separation
agreement including the Release of Claims shall be and remain effective, notwithstanding such
difference in the facts.

In the event of any dispute or claim relating to or arising out of our employment relationship, the
Separation of that relationship, or this agreement (including, but not limited to, any claims of
wrongful Separation, breach of contract or age, sex, race, disability or other discrimination or
harassment), you and Callidus agree that all such disputes shall be fully and finally resolved by
binding arbitration conducted by the American Arbitration Association in Santa Clara County,
California, with the neutral arbitrator exercising all powers and remedies of a Judge. Such
arbitrator shall prepare a written decision that sets forth the essential findings and conclusions
upon which the award is based. The Company shall pay for all costs that are unique to
the

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arbitration, including arbitration forum costs. By signing this agreement you and Callidus waive
your rights to have such disputes tried by a judge or a jury.

This separation agreement sets forth the entire agreement between you and Callidus and supersedes
any and all of the other agreements between you and Company, except for the Employment,
Confidential Information and Invention Assignment Agreement which you have signed and which will
remain in full force and effect. No one has promised you anything that is different from what is
set forth in this agreement. You understand and agree that this separation agreement shall not be
deemed or construed at any time or for any purposes as an admission of any liability or wrongdoing
by either you or the Company. Any modifications to this separation agreement must be in writing
and signed by an authorized representative of Callidus. This separation agreement has been made in
California and California law applies to it. If any part is found to be invalid, the remaining
parts of the agreement will remain in effect as if there were no invalid part.

You represent you are over the age of 40. As such, in accordance with the Older Workers Benefit
Protection Act, you have been provided at least 21 days from the date of this separation letter to
accept its terms. You should take sufficient time to consult an attorney about these terms. Once
you execute this letter, you will have an additional seven (7) days in which to revoke your
acceptance. To revoke, you must deliver to me a written statement of revocation. By your
signature below, you understand and acknowledge that you are required to repay Callidus for any
amounts received by you beyond the date of this letter in the event that you voluntarily decide to
revoke your rights. You also understand and agree that if any suit is brought to enforce the
provisions of this separation agreement, the prevailing party shall be entitled to its costs,
expenses, and attorneys’ fees as well as any and all other remedies specifically authorized under
the law.

EMPLOYEE’S ACCEPTANCE OF SEPARATION AGREEMENT

I HAVE CAREFULLY READ AND FULLY UNDERSTAND AND VOLUNTARILY AGREE TO ALL THE TERMS OF THE SEPARATION
AGREEMENT AND THE RELEASE OF CLAIMS IN EXCHANGE FOR THE ADDITIONAL BENEFITS TO WHICH I WOULD
OTHERWISE NOT BE ENTITLED.

Agreed and Accepted:

	 	 	 	 	 
	 

	 	 	 	 
	Robert Warfield

	 	 	 	Date

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Exhibit 10.25

ZIX CORPORATION

STOCK OPTION AGREEMENT

     THIS STOCK OPTION AGREEMENT (“Agreement”) is made and entered into as of the date set forth on
the signature page attached hereto (the “Signature Page”) with respect to the stock options granted
by Zix Corporation, a Texas corporation (the “Company”), to the Optionee (“Optionee”) listed on the
signature page hereto.

     WHEREAS, the Company wishes to recognize the contributions of the Optionee to the Company and
to encourage the Optionee’s sense of proprietorship in the Company by owning the Common Stock, par
value $.01 per share (the “Common Stock”), of the Company;

     NOW, THEREFORE, in consideration of the mutual agreements and covenants contained herein, the
Company hereby grants to the Optionee a non-qualified stock option (“Option”) to purchase up to the
total number of shares of the Common Stock set forth on the Signature Page at the price per share
(the “Option Price”) as set forth on the Signature Page on the terms and conditions and subject to
the restrictions as set forth in this Agreement and the provisions of the applicable Zix
Corporation stock option plan (which is incorporated herein by reference) (the “Plan”), which is
referenced on the Signature Page. All defined terms contained herein shall have the meanings
ascribed to them in the Plan, except as otherwise provided herein.

1. Definitions.

     a. Disability. “Disability” shall mean any medically determinable physical or mental
impairment that, in the opinion of the Committee, based upon medical reports and other evidence
satisfactory to the Committee, can reasonably be expected to prevent the Optionee from performing
substantially all of his or her customary duties of employment (with or without reasonable
accommodation) for a continuous period of not less than 12 months.

     b. Resignation. “Resignation” shall mean the voluntary termination by the Optionee of
his or her employment relationship with the employing Subsidiary and, if applicable, Company under
circumstances other than voluntary Retirement.

     c. Retirement. “Retirement” shall mean the termination of Optionee’s
employment in accordance with the requirements of a written retirement plan, policy or rule of the
Company that has been duly adopted by the Company or employing Subsidiary, as applicable.

2. Term of Option. The term of this Option shall expire on the expiration date set forth
in the Signature Page (the “stated term”), except as such term may be otherwise shortened by the
other provisions of the Plan or this Agreement.

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3. Exercise of Option.

     a. Exercise. This Option shall become exercisable in increments as set forth in the
Signature Page. Except as provided in the Plan, the Option shall not be exercisable unless
Optionee shall, at the time of exercise, be an employee of the Company or a Subsidiary, and once
the Option has become exercisable with respect to a certain number of shares as provided above, it
shall thereafter be exercisable as to all of that number of shares, or as to any part thereof,
until expiration or termination of this Option. However, this Option may not be exercised as to
less than 100 shares at any one time (or the remaining shares then purchasable under this Option,
if less than 100 shares).

     b. Adjustment. In the event there is any adjustment to the Common Stock the Board of
Directors or Committee shall make such adjustment as it deems appropriate to the number of shares
subject to the Option or to the Option Price, or both.

     c. Method of Exercise. This Option may be exercised only by written notice (the
“Exercise Notice”) by the Optionee to the Company at its principal executive office. The Exercise
Notice shall be deemed given when deposited in the U. S. mails, postage prepaid, addressed to the
Company at its principal executive office, or if given other than by deposit in the U.S. mails,
when delivered in person to an officer of the Company at that office. The date of exercise of this
Option (the “Exercise Date”) shall be the date of the postmark if the notice is mailed or the date
received if the notice is delivered other than by mail. The Exercise Notice shall state the number
of shares in respect of which this Option is being exercised and, if the shares for which this
Option is being exercised are to be evidenced by more than one stock certificate, the denominations
in which the stock certificates are to be issued. The Exercise Notice shall be signed by the
Optionee and shall include the complete address of such person, together with such person’s social
security number.

     This Option may be exercised either by tendering cash in the amount of the Option Price or,
with the Company’s consent, by tendering shares of Common Stock (which may include shares
previously acquired upon exercise of options granted under the Plan). The Exercise Notice shall be
accompanied by payment of the aggregate Option Price of the shares purchased by cash, a certified
cashier’s check or, at the Company’s option, by delivery of shares of Common Stock having a Fair
Market Value on the date immediately preceding the exercise date equal to the Option Price.

     If the shares to be purchased are covered by an effective registration statement under the
Securities Act of 1933, as amended, any option granted under the Plan may be exercised by a
broker-dealer acting on behalf of an Optionee if (a) the broker-dealer has received from the
Optionee or the Company a fully- and duly-endorsed agreement evidencing such option, together with
instructions signed by the Optionee requesting the Company to deliver the shares of Common Stock
subject to such option to the broker-dealer on behalf of the Optionee and specifying the account
into which such shares should be deposited, (b) adequate provision has been made with respect to
the payment of any withholding taxes due upon such exercise, and (c) the broker-dealer and the
Optionee have otherwise complied with Section 220.3(e)(4) of Regulation T, 12 CFR Part 220, or any
successor provision.

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     The certificates for shares of Common Stock as to which this Option shall have been so
exercised shall be registered in the name of the Optionee and shall be delivered to the Optionee at
the address specified in the Exercise Notice. An option exercise shall be valid only if the
Optionee makes payment or other arrangements relating to the withholding tax obligations discussed
in Paragraph 8. In the event the person exercising this Option is a transferee of the Optionee by
will or under the laws of descent and distribution, the Exercise Notice shall be accompanied by
appropriate proof of the right of such transferee to exercise this Option.

4. Termination of Option.

     In the event an Optionee ceases to be an employee of either the Company or a Subsidiary of the
Company due to death, Retirement, Resignation, Disability or termination by the Company for any
reason other than “cause” (such five events each being a “Qualified Termination”), this Option may
be exercised by the Optionee or his or her estate, personal representative or beneficiary to the
fullest extent that the Optionee was entitled to exercise the same on the day immediately prior to
such termination (i) at any time within the one-year period commencing on the day next following
such termination if such termination is due to the death of the Optionee; (ii) at any time within
the thirty-day period commencing on the day next following the effective date of such termination
if such termination is due to the Resignation of the Optionee; or (iii) at any time within the
six-month period commencing on the day next following such termination in the case of any other
Qualified Termination (or in any such case in (i), (ii) or (iii) above, if shorter, only for the
remaining stated term of this Option). In the event that the Optionee’s employment is terminated
for any reason other than a Qualified Termination, this Option shall automatically expire
simultaneously with such termination. For purposes of this Paragraph, “cause” shall mean (i) the
failure, in the sole opinion of the Company or a Subsidiary of the Company that employs Optionee,
of Optionee to adequately perform the duties assigned to Optionee (other than any such failure
resulting from Optionee’s Disability); (ii) the engagement by Optionee in misconduct that, in the
sole opinion of the Company or a Subsidiary of the Company that employs Optionee, is or may have
the effect of being materially injurious to the Company or its Subsidiaries; or (iii) the
conviction of Optionee of any felony or crime of moral turpitude.

     After the Optionee’s death, this Option shall be exercisable only by the executor or
administrator of the Optionee’s estate, or if the Optionee’s estate is not in administration, by
the person or persons to whom the Optionee’s rights shall have passed by the Optionee’s will or
under the laws of descent and distribution of the state where the Optionee was domiciled at the
date of death.

5. No Rights as Shareholder. Neither the Optionee nor any person claiming under or through
the Optionee shall be or have any rights or privileges of a shareholder of the Company in respect
of any of the shares issuable upon the exercise of this Option, unless and until certificates
representing such shares shall have been issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company).

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6. State and Federal Securities Regulation. No shares shall be issued by the Company upon
the exercise of this Option unless and until any then-applicable requirements of state and federal
laws and regulatory agencies shall have been fully complied with to the satisfaction of the Company
and its counsel. The Company may suspend for a reasonable period or periods the time during which
this Option may be exercised if, in the opinion of the Company, such suspension is required to
enable the Company to remain in compliance with regulatory requirements relating to the issuance of
shares of Common Stock subject to this Option. This Option is subject to the requirement that, if
at any time the Company shall determine, in its discretion, that the listing, registration or
qualification of the shares of common stock subject to this Option upon any securities exchange or
under any state or federal law, or the consent or approval of any government regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting or exercise of this
Option or the issue or purchase of shares under this Option, this Option may not be exercised in
whole or in part until such listing, registration, qualification, consent or approval shall have
been effected or obtained free of any conditions not acceptable to the Company. The Company shall
be under no obligation to effect or obtain any such listing, registration, qualification, consent
or approval if the Company shall determine, in its discretion, that such action would not be in the
best interest of the Company. The Company shall not be liable for damages due to a delay in the
delivery or issuance of any stock certificates for any reason whatsoever, including, but not
limited to, a delay caused by listing, registration or qualification of the shares of Common Stock
subject to an option upon any securities exchange or under any federal or state law or the
effecting or obtaining of any consent or approval of any governmental body with respect to the
granting or exercise of this Option or the issue or purchase of shares under this Option.

7. Modification of Options. At any time and from time-to-time the Committee may execute an
instrument providing for modification, extension, or renewal of any outstanding option, provided
that no such modification, extension or renewal shall impair this Option in any respect without the
written consent of the holder of this Option.

8. Withholding of Taxes. The Company may make such provisions and take such steps as it
may deem necessary or appropriate for the withholding of any taxes which the Company or any
Subsidiary is required by any law or regulation of any governmental authority, whether federal,
state or local, domestic or foreign, to withhold in connection with any option, including, but not
limited to, the withholding of the issuance of all or any portion of the shares of Common Stock
subject to this Option until the Optionee reimburses the Company or the applicable Subsidiary for
the amount the Company or the applicable Subsidiary is required to withhold with respect to such
taxes, canceling any portion of the issuance in an amount sufficient to reimburse the Company or
the applicable Subsidiary for the amount it is required to so withhold, or taking any other action
reasonably required to satisfy the withholding obligation of the Company or the applicable
Subsidiary.

9. Continued Employment Not Presumed. Nothing in this Agreement, the Plan or any document
describing it nor the grant of an option shall give the Optionee the right to continue in
employment with the Company or any of its Subsidiaries or affect the right of the Company or a
Subsidiary to terminate the employment of the Optionee with or without cause.

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10. Non-Competition Covenants.

     a. The provisions of this subparagraph a. shall apply both during normal working hours and at
all other times including, but not limited to, nights, weekends and vacation time, while Optionee
is employed by the Company or any Subsidiary. Optionee shall not directly or indirectly (i) engage
in any employment, business, or activity that is competitive with the business of the Company or
any Subsidiary, (ii) assist any other person or organization in competing with, or in preparing to
engage in competition with, the business of the Company or any Subsidiary. Direct competition shall
include, but not be limited to, the design, development, production, promotion or sale of products,
software, or services competitive with those of the Company or any Subsidiary. In addition,
Optionee shall not directly or indirectly (i) engage in any employment, business, or activity that
is competitive with either (A) the proposed business of the Subsidiary that employs
Optionee (“Employing Subsidiary”) or (B) any proposed business of any of the Company’s other
Subsidiaries (the “Non-Employing Subsidiaries”) of which Optionee has actual knowledge, or (ii)
assist any other person or organization in competing with, or in preparing to engage in competition
with, either (A) the proposed business of the Employing Subsidiary or (B) any proposed
business of any Non-Employing Subsidiary of which Optionee has actual knowledge.

     b. The provisions of this subparagraph b. shall apply during Optionee’s employment with the
Company or any Subsidiary and for a period of six months after Optionee ceases to be employed by
the Company or any Subsidiary. Optionee shall not directly or indirectly solicit to conduct any
Competitive Business with, or conduct any Competitive Business with, any (i) then-current customer
of the Employing Subsidiary or (ii) any person that has been a customer of the Employing Subsidiary
within the six months prior to the time of Optionee’s separation from employment. The phrase
“Competitive Business” means the line(s) of business(es) conducted by the Employing Subsidiary.

     c. The provisions of this subparagraph c. shall apply during Optionee’s employment with the
Company or any Subsidiary and for a period of 12 months after Optionee’s separation from
employment. Optionee shall not directly or indirectly solicit to hire, or cause to be hired, any
employee of the Company or any Subsidiary as an employee or agent of, or consultant to, any
business enterprise that Optionee is associated with.

     d. Each non-competition covenant of Optionee contained in the preceding provisions of this
Paragraph 10 (the “non-competition covenant”) shall be construed as an agreement independent of any
other provision of this Agreement and the existence of any claim or cause of action of Optionee
against the Company or any Subsidiary, whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by the Company or any Subsidiary of such non-competition
covenant.

     e. The Company and Optionee have in good faith used their best efforts to make each
non-competition covenant contained in the preceding provisions of this Paragraph 10 reasonable in
both scope and in duration. It is not anticipated, nor is it intended, by either party to this
Agreement that any court or other tribunal having jurisdiction over the matter will find it
necessary to reform any non-competition covenant to make it reasonable in both scope and in

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duration, or otherwise. If any non-competition covenant is deemed by a tribunal having
jurisdiction over the matter to be unlawful or unenforceable, such provision will be deemed
severable from this Agreement and such provision will be limited or eliminated to the minimum
extent necessary so that the remaining provisions of this Agreement shall otherwise remain in full
force and effect and be enforceable. Furthermore, in lieu of such unlawful or unenforceable
provision, there shall be added automatically as part of this Agreement a provision as similar in
terms as may be possible and be enforceable.

     f. Optionee is agreeing to the provisions of this Paragraph 10 in consideration of the grant
of this Option. The provisions of this Paragraph 10 shall be valid and enforceable by the Company
and its Subsidiaries, regardless of whether or not any of this Option granted hereunder actually
becomes exercisable, or whether or not Optionee actually exercises any rights under this Option.
In the event of any conflict or inconsistency between any provision of this Paragraph 10 and any
similar or analogous provision of any other agreement (either currently in effect or that may be
entered into in the future) between Optionee, on the one hand, and the Company or any Subsidiary,
on the other hand, whichever provision is most favorable to the Company or such Subsidiary shall
govern.

11. Option Issued Pursuant to Plan. This Option is issued pursuant to and subject to the
terms and conditions and the restrictions as set forth in the Plan, and in the event of any
inconsistency, the provisions of the Plan shall govern, provided that no amendment shall be made to
the Plan subsequent to the date hereof that impairs the Optionee’s rights under this Option without
the Optionee’s written consent.

12. No Liability of Option. This Option is not liable for or subject to, in whole or in
part, the debts, contracts, liabilities or torts of the Optionee nor shall it be subject to
garnishment, attachment, execution, levy or other legal or equitable process.

13. No Assignment. This Option is not transferable otherwise than by will or the laws of
descent and distribution, and is exercisable during the Optionee’s lifetime only by Optionee.
Without limiting the generality of the foregoing, this Option may not be assigned, transferred
(except as aforesaid), pledged or hypothecated in any way (whether by operation of law or
otherwise), and shall not be subject to execution, attachment, or similar process, without the
prior written consent of the Company. Any attempted assignment, transfer, pledge, or hypothecation
contrary to the provisions hereof shall be void and ineffective for all purposes.

14. Governing Law. This Agreement has been executed in, and shall be deemed to be
performable in, Dallas, Dallas County, Texas. The parties agree that this Agreement shall be
governed by and construed in accordance with the laws of the State of Texas (excluding its conflict
of laws rules). The parties further agree that the courts of the State of Texas, and any courts
whose jurisdiction is derivative on the jurisdiction of the courts of the State of Texas, shall
have personal jurisdiction over all parties to this Agreement.

15. Entire Agreement. By signing the Signature Page, the Optionee agrees to the terms of
this Option. Except for the Plan, this Agreement constitutes the entire agreement between the
parties pertaining to the subject matter hereof and supersedes all prior and contemporaneous

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agreements, representations and understandings of the parties. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by the party to be charged
therewith. No waiver of any of the provisions of this Agreement shall be deemed, or shall
constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute
a continuing waiver.

16. Notice. Other than any Exercise Notice, any notice required or permitted to be given
under the Plan or this Agreement shall be in writing and delivered in person or sent by registered
or certified mail, return receipt requested, first-class postage prepaid, (i) if to the Optionee,
at the address shown on the books and records of the Company or at the Optionee’s place of
employment, or (ii) if to the Company, at 2711 N. Haskell Avenue, Suite 2300, LB 36, Dallas, Texas
75204-2960: Attention: Treasurer, or any other address that may be given by either party to the
other party by notice pursuant to this Paragraph. Any notice other than any Exercise Notice, if
sent by registered or certified mail, shall be deemed to have been given when received.

	 	 	 	 	 
	 	ZIX CORPORATION

 	 
	 	By:  	/s/ Bradley C. Almond
 	 
	 	 	Bradley C. Almond 	 
	 	 	Vice President, Chief Financial
Officer and Treasurer 	 
	 

7

 

8

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