Document:

exv10w28

Exhibit 10.28

Execution Version

AMENDED AND RESTATED SEVERANCE AGREEMENT

     THIS AMENDED AND RESTATED SEVERANCE AGREEMENT (this “Agreement”), dated December 18, 2008 is
entered into between Zix Corporation, a Texas corporation, with its principal executive offices in
Dallas, Texas (the “Company”), and Ronald A. Woessner, an individual currently residing in Plano,
Texas, who is currently employed as Senior Vice President and General Counsel of the Company
(“Employee”) and hereby amends and restates that certain severance agreement, dated February 25,
2002 between the parties.

Recitals

     A. The Company and Employee have entered into a Severance Agreement, dated November 4, 1996,
and subsequent successors thereto (the “Severance Agreements”).

     B. The Company and Employee desire to enter into this Severance Agreement, which will replace
the Severance Agreements.

     C. In consideration of the Company’s agreements herein, Employee is willing to continue
working for the Company or an Affiliate, as applicable, on an “at-will” basis.

Terms and Conditions

     In consideration of the recitals and the agreements herein and other good and valuable
consideration, the parties agree as follows:

1. Definitions.

     1.1 An “Acquiring Person” shall mean any person (including any “person” as such term is used
in Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) that, together with all Affiliates and Associates of such person, is the beneficial owner of
10% or more of the outstanding Common Stock. The term “Acquiring Person” shall not include the
Company, any subsidiary of the Company, any employee benefit plan of the Company or subsidiary of
the Company, or any person to the extent such person is holding Common Stock for or pursuant to the
terms of any such plan. For the purposes of this Agreement, a person who becomes an Acquiring
Person by acquiring beneficial ownership of 10% or more of the Common Stock at any time after
November 4, 1996 shall continue to be an Acquiring Person whether or not such person continues to
be the beneficial owner of 10% or more of the outstanding Common Stock.

     1.2 “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act in effect on the date of
this Agreement.

     1.3 The Company and its Affiliates shall have “Cause” to terminate Employee’s
employment upon (1) the intentional and continued failure by Employee to substantially perform

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Employee’s employment duties such intentional actions involving willful and deliberate malfeasance
or gross negligence in the performance of Employee’s duties (other than any such failure resulting
from Employee’s incapacity due to physical or mental illness), after written demand for substantial
performance is delivered by the Company or an Affiliate, as applicable, that specifically
identifies the manner (such demand not to be unreasonable) in which the Company or the Affiliate,
as applicable, believes Employee has not substantially performed Employee’s duties; or (2) the
willful engaging by Employee in misconduct that is materially injurious to the Company or employing
Affiliate, as applicable; or (3) the conviction of Employee of any felony or crime of moral
turpitude that is injurious to the Company; or (4) Employee attains the mandatory retirement age
specified in any applicable retirement plan of the Company or any successor-in-interest (but for
purposes of this clause (4), any such mandatory retirement age shall not be less than age 65). For
purposes of this definition no act, or failure to act, on Employee’s part shall be considered
“willful” unless done, or omitted to be done, by Employee not in good faith and without reasonable
belief that Employee’s action or omission was in the best interest of the Company or the applicable
Affiliate(s), or both, as applicable. Notwithstanding the foregoing, Employee shall not be deemed
to have been terminated for Cause without the following procedures having been adhered to: (a)
reasonable written notice to Employee, setting forth the reasons for the Company’s or the
Affiliate’s intention to terminate for Cause; (b) an opportunity for Employee, together with
Employee’s counsel, to be heard before the Zix Corporation Board of Directors; and (c) delivery to
Employee of a written Notice of Termination finding that, in the good faith opinion of the Zix
Corporation Board of Directors, Employee was guilty of conduct set forth above in clause (1), (2)
or (3) above, and specifying the particulars thereof in detail.

     1.4 “Change in Control” shall mean the occurrence of any of the following events:

     (i) The Company is merged, consolidated or reorganized into or with another corporation
or other legal person, other than an Affiliate, and as a result of such merger,
consolidation or reorganization less than 51% of the combined voting power to elect each
class of directors of the then outstanding securities of the remaining corporation or legal
person or its ultimate parent immediately after such transaction is owned, directly or
indirectly, in the aggregate by persons who were shareholders, directly or indirectly, of
the Company immediately prior to such merger, consolidation, or reorganization;

     (ii) The Company sells all or substantially all of its assets to any other corporation
or other legal person, other than an Affiliate, and as a result of such sale less than 51%
of the combined voting power to elect each class of directors of the then outstanding
securities of such corporation or legal person or its ultimate parent immediately after such
transaction is owned, directly or indirectly, in the aggregate by persons who were
shareholders, directly or indirectly, of the Company immediately prior to such sale;

     (iii) Any Acquiring Person has become the beneficial owner (as the term “beneficial
owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the
Exchange Act) of securities which when added to any securities already owned by such person
would represent in the aggregate 35% or more of the then outstanding securities of the
Company which are entitled to vote to elect any class of directors;

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     (iv) If at any time, the Continuing Directors then serving on the Board of Directors of
the Company cease for any reason to constitute at least a majority thereof;

     (v) Any occurrence that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A or any successor rule or regulation promulgated under the
Exchange Act; or

     (vi) Such other events that cause a change in control of the Company, as determined by
the Zix Corporation Board of Directors in its sole discretion.

     1.5 “Change in Control Payment” shall mean two times the higher of (i) Employee’s annual base
salary in effect on the date of the Change in Control or (ii) Employee’s highest annual base salary
during the term of Employee’s employment with the Company.

     1.6 A “Continuing Director” shall mean a director of the Company who (i) is not an Acquiring
Person or an Affiliate or Associate thereof, or a representative of an Acquiring Person or
nominated for election by an Acquiring Person, and (ii) was either a member of the Board of
Directors of the Company on the date of this Agreement or subsequently became a director of the
Company and whose initial election or initial nomination for election by the Company’s shareholders
was approved by a majority of the Continuing Directors then on the Board of Directors of the
Company.

     1.7 “Disability” shall mean that the Employee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than 12 months.

     1.8 “Good Reason” shall mean the occurrence of any of the following events:

     (a) any material diminution in Employee’s duties that has not been cured within thirty
days after notice of such noncompliance has been given (within 30 days of the alleged
material diminution) by Employee to the Company or the employing Affiliate, as applicable. A
change in title or duties will not be considered to be a “material diminution” in duties if,
after such change, Employee is an officer of the Company; Employee’s reporting relationship
does not change or Employee reports to the Company’s Chief Executive Officer or Chief
Operating Officer; and a substantial portion of Employee’s duties are in Employee’s field of
professional training or experience.

     (b) a reduction of more than 10% in Employee’s base salary (with the 10% being
cumulative over the term of Employee’s employment), but any percentage reduction that is
actually made is made against the Employee’s then current base salary).

EXAMPLE: assume Employee’s base salary is $100,000. The Company or Affiliate, as applicable,
is permitted to reduce Employee’s base salary by up to 10% ($10,000) without giving Employee
“Good Reason” to terminate employment. Any further salary reductions

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would constitute “Good
Reason” to terminate employment.

     (c) any purported termination for Cause of Employee’s employment that is not effected
pursuant to the procedural requirements of Subsection 1.3.

     (d) the location of Employee’s place of employment is moved more than 50 miles from its
current location.

     1.9 “Notice of Termination” shall mean a notice that indicates the specific reasons for
termination and shall set forth in reasonable detail the facts and circumstances claimed to provide
a basis for termination of Employee’s employment.

     1.10 “Person” shall mean an individual, a corporation, a partnership, an association, a
joint-stock company, a trust, an incorporated organization or a government or political subdivision
thereof.

     1.11 “Severance Payment” shall mean an amount equal to 150% of Employee’s highest annual base
salary during the term of Employee’s employment with the Company; provided that, if the
event giving rise to the Severance Payment occurs on or before the 180th day following a Change in
Control (with the day immediately following the day of the occurrence of the Change in Control
being day “1”), then the amount of the Severance Payment shall be the greater of (i) the amount
provided for in this sentence or (ii) the amount provided for in Section 3 (as if Employee had
resigned from employment pursuant to Section 3).

2. Severance Payment. From and after the date hereof, upon the occurrence of any of the
following events the Company will pay to Employee the Severance Payment (in accordance with Section
4) and Employee’s options to acquire the Company’s stock shall become vested in full (regardless of
whether the options were granted before or are granted after the date of this Agreement):

	 	(a)	 	Employee’s employment with the Company and its Affiliates is terminated by the
Company or the employing Affiliate, as applicable, other than for Cause;
	 
	 	(b)	 	Employee terminates his employment for Good Reason, subject to the notice and
cure provisions noted below; or
	 
	 	(c)	 	Employee incurs a Disability.

     To terminate Employee’s employment other than for Cause pursuant to 2(a), the Company or the
employing Affiliate, as applicable, shall give Employee written notice of such termination. Such
notice shall be effective 90 days following the Employee’s receipt thereof.

     Notwithstanding the preceding provisions, Employee shall not be permitted to resign
employment for a Good Reason event until (i) Employee has provided to the Company notice of the
existence of the good reason condition within 90 days of its initial existence and (ii) the Company
has not remedied the good reason condition within a period of 30 days from the

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Company’s receipt of
such notice. Following the satisfaction of (i) and (ii), Employee must
exercise his right to resign for Good Reason within 30 days (i.e., such Good Reason
resignation must occur within 150 days of the occurrence of the good reason event), with the day
immediately following the existence of the good reason condition being day “1.”

     Employee shall not be entitled to more than one Severance Payment pursuant to this Agreement.

3. Change in Control Payment. If Employee resigns from employment (subject to the notice
and cure provisions noted below) with the Company and its Affiliates following a Change in Control
for a “Change in Control Good Reason,” as such term is defined below, the Company shall pay to
Employee the Change in Control Payment (in accordance with Section 4) and Employee’s options to
acquire the Company’s stock shall become vested in full (regardless of whether the options were
granted before or are granted after the date of this Agreement).

     A “Change in Control Good Reason” shall mean (i) a material diminution in the Employee’s
authority, duties or responsibilities, (ii) a material diminution in the Employee’s base salary,
(iii) a material change in the geographic location at which the Employee must perform services,
(iv) a material diminution in the authority, duties, or responsibilities of the supervisor to whom
the Employee is required to report, including a requirement that the Employee report to a corporate
officer or employee instead of the board of directors (or similar governing body), (v) a material
diminution in the budget over which the Employee retains authority, or (vi) any other event that
constitutes a material breach by the Company of the agreement under which the Employee provides
services.

     Notwithstanding the preceding provisions, Employee shall not be permitted to resign
employment for a “Change in Control Good Reason” until (a) Employee has provided to the Company
notice of the existence of the good reason condition within 90 days of its initial existence and
(b) the Company has not remedied the good reason condition within a period of 30 days from the
Company’s receipt of such notice. Following the satisfaction of (a) and (b), Employee must
exercise his right to resign for a Change in Control Good Reason within 60 days (i.e., such Change
in Control Good Reason resignation must occur within 180 days of the occurrence of the good reason
event), with the day immediately following the existence of the good reason condition being day
“1.”

4. Mode of Payment. The Severance Payment or Change in Control Payment, as applicable,
shall be paid in a lump sum (less applicable withholdings for taxes and other withholdings required
by applicable law) as soon as practicable but no later than 60 days of the occurrence of the
applicable event, subject to the Company’s receipt of a release in a form reasonably satisfactory
to the Company relating to employment matters. The Company will provide the form release to
Employee within 5 days of the date of the event giving rise to the payment. In the event that
Employee fails to execute a release within this 60 day period, he shall forfeit the Severance
Payment or Change in Control Payment, as applicable. The Company’s obligation to pay the Severance
Payment and the Change in Control Payment is absolute, and such payments shall not be mitigated or
offset by virtue of Employee obtaining new employment or failing to seek new employment.

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     Employee shall be entitled to receive pursuant to this Agreement only one of the following
payments (a) the Severance Payment (Section 2), or (b) the Change in Control Payment (Section 3)
(i.e., not more than one of any such payments is payable pursuant to this Agreement).

5. General.

     5.1 Dispute Resolution. The provisions of Exhibit A attached hereto shall
govern any disputes arising under this Agreement. Without limiting the generality of the
foregoing, if a dispute arises between the parties as to whether or not Employee has “Good Reason”
or “Change in Control Good Reason” to terminate employment, Employee is not required to resign from
employment with the Company or an Affiliate, as applicable, to “perfect” Employee’s right to make a
claim for the Severance Payment or Change In Control Payment, as applicable, although Employee may
resign from employment if Employee chooses. Such disputes shall be resolved in accordance with the
provisions of Exhibit A attached hereto. If the dispute is resolved in Employee’s favor
(regardless of whether pursuant to a legally binding settlement of such dispute, the Company’s
concession that the amount is payable or the Company being required to make such payment pursuant
to a final and nonappealable judgment or other binding decision) and it is determined that Employee
has “Good Reason” or “Change in Control Good Reason” to terminate employment, then Employee will be
required to terminate employment within 30 days thereof. Payment of the Severance Payment or
Change In Control Payment shall be made as soon as practicable following Employee’s termination of
employment but no later than 60 days thereafter, subject to the Company’s receipt of a release in a
form reasonably satisfactory to the Company relating to employment matters. In the event that
Employee fails to execute a release within this 60 day period, he shall forfeit the Severance
Payment or Change in Control Payment, as applicable.

     5.2 Confidential Information. Employee and the Company acknowledge that Employee has,
or may have, previously executed a Confidentiality and Invention Agreement which is incorporated
herein by reference and shall survive Employee’s separation from employment in accordance with its
terms.

     5.3 Notice. All notices and other communications provided for in this Agreement shall
be in writing and shall be deemed to have been received on the date delivered, if personally
delivered, or the date received after being mailed by United States registered or certified mail,
return receipt requested, postage prepaid, addressed to the applicable party at the address for
such party set forth below or at such other address as such party may designate by like notice:

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     Employee:

Ronald A. Woessner

     The Company:

Zix Corporation

2711 North Haskell Avenue, Suite 2200, LB 36

Dallas, Texas 75204-2960

Attn: CEO

     5.4 Successors; Binding Agreement. This Agreement will be binding upon and inure to
the benefit of the parties hereto and any successors in interest to the Company following a Change
in Control. This Agreement and all rights of Employees hereunder shall inure to the benefit of and
be enforceable by Employee’s personal or legal representatives, executors, administrators,
successors, heirs, distributes, devisees and legatees.

     5.5 Entire Agreement; Modifications. This Agreement embodies the entire agreement
between the parties with respect to the subject matter hereof and supersedes all prior agreements
(including the Severance Agreements) and understandings relating to the subject matter hereof.
Only an instrument in writing executed by both parties may amend this Agreement. No waiver by
either party hereto of, or compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

     5.6 Validity. The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

     5.7 Enforcement Fees. In the event of a dispute arising under this Agreement, unless
otherwise agreed by the parties in writing, each party shall pay its own costs and expenses in
resolving the dispute.

     5.8 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Texas (excluding its conflict of laws rules).

     5.9 409A Compliance. This Agreement, as amended, is intended to be exempt from and/or
comply with the requirements (and not otherwise be subject to the interest and penalty taxes of)
section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and
other guidance issued thereunder, and shall be interpreted in a manner consistent with that intent.
Notwithstanding the foregoing, in the event there is a failure under this
Agreement to comply with section 409A of the Code, the Company shall have the discretion to
accelerate any

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payment hereunder of “nonqualified deferred compensation” (within the meaning of
section 409A of the Code), but only to the extent of the amount required to be included in income
as a result of such failure.

	 	 	 	 	 	 	 
	 	 	ZIX CORPORATION	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Richard D. Spurr	 	 
	 	 	 	 	 
	 	 	Richard D. Spurr, Chairman & CEO	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	12-22-08	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Ronald A. Woessner	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	12-18-08	 	 
	 

	 	 	 	 	 	 

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EXHIBIT A

MUTUAL ALTERNATE DISPUTE RESOLUTION AGREEMENT

     Zix Corporation and its majority-owned subsidiaries are individually and collectively referred
to in this Exhibit A as the “Company.”

     A. Because this Exhibit A promotes arbitration as the exclusive final and binding
method of addressing claims covered herein, the Company and Employee agree to be bound by those
laws best promoting the enforceability of arbitration agreements in effect at any given time,
including the Federal Arbitration Act, federal common law, and any applicable state laws promoting
arbitration.

     B. Except as otherwise provided in this Exhibit A, the Company and the Employee
consent and agree to the resolution, in the manner provided for in this Exhibit A, of all
claims or controversies brought by the Employee against the Company or any of the Company’s current
or former officers, directors, employees, or agents, or brought by the Company against the Employee
(“Claims”) for which a court otherwise would be authorized by law to grant relief, that are (1)
claims in any way arising out of, relating to, or associated with the Employee’s employment or
termination from employment with the Company or any adverse employment action by the Company or any
Company-provided benefits or compensation; (2) any other claims the Employee may have against the
Company, any benefit plans of the Company or any fiduciaries, administrators, and affiliates of any
benefit plan, or any of the Company’s current or former officers, directors, employees, or agents
in their capacity as such; or (3) any issue concerning the formation, applicability,
interpretation, or enforceability of this Exhibit A.

     The Employee acknowledges that the Claims intended to be covered by this Exhibit A
include (but are not limited to) claims or controversies under or relating to: any federal, state,
or local constitution, law, or regulation prohibiting discrimination, harassment, retaliation,
discharge, or other adverse employment action; an alleged or actual contract; any Company policy or
benefit; entitlement to wages or other compensation; and any claim for personal, emotional,
physical, economic, or other injury.

     C. The only claims otherwise within the definition of Claims that are not covered by this
Exhibit A are: (1) claims asserted in any administrative actions that the Employee is
permitted to pursue under applicable law that are not precluded by virtue of the Employee having
entered into this Exhibit A; (2) any claim by the Employee for benefits under a workers’
compensation insurance policy or for statutory unemployment compensation benefits; (3) any claim by
the Employee for benefits under a Company pension or benefit plan that provides its own
non-judicial final and binding dispute resolution procedure; (4) any claim by the Company for
injunctive relief, specific performance and/or damages for unfair competition, use or unauthorized
disclosure of confidential or proprietary information or trade secrets, use or ownership of
patents, trademarks, copyrights, know-how, and other intellectual property and applications with
respect to the foregoing; or (5) any claim arising under the Confidentiality and Invention Agreement signed by the
Employee in connection with employment with the Company.

					
	 	 	 	 	 
	 
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     D. The arbitration will be conducted in accordance with the provisions of this Exhibit
A and the National Rules for the Resolution of Employment Disputes of the American Arbitration
Association (“AAA”) in effect at the time the written notice of the Claim is received. A copy of
AAA’s current rules can be found at www.adr.org. The arbitrator shall also have the authority to
determine a motion for summary disposition of a particular claim or issue, either by agreement of
all interested parties or at the request of one, provided all interested parties have reasonable
opportunity to respond. An arbitrator shall be selected in the manner provided for by the AAA,
except that the parties agree that the arbitrator shall (1) be an attorney licensed in the state
where the arbitration is being conducted and (2) have expertise in the area of employment law. The
arbitration will be held in Dallas County, Texas, the Company’s corporate headquarters.

     E. The arbitrator shall follow the law applicable to the Claim, including but not limited to,
statutes of limitations, exhaustion of administrative remedies and burdens of proof, and shall have
the authority to award all remedies that would be available in a court of law. The arbitrator
shall issue a written decision that identifies the factual findings and principles of law upon
which any award is based. Such decision shall be final and binding on the parties, and a judgment
of any court having jurisdiction may be entered on the award.

     F. The Employee understands that by agreeing to submit Claims to arbitration, he or she gives
up the right to seek a trial by court or jury and the right to an appeal from certain errors of the
decision maker and forgoes any and all related rights he or she may otherwise have under federal
and state laws. Any party who initiates litigation in violation of this Agreement will incur
liability to the person(s) sued for costs and attorneys’ fees incurred in defending the Claim and
enforcing the terms of this Exhibit A.

     G. In the event any provision of this Exhibit A is found by an arbitrator, arbitration
organization, or court to be unenforceable, in whole or in part, the remaining provisions of this
Exhibit A shall nevertheless remain enforceable, and the unenforceable provisions shall, to
the extent permitted under applicable law, be modified so as to be enforceable to the maximum
extent possible under applicable law or, if not subject to modification, severed and excluded from
this Exhibit A. If a court, arbitrator, or arbitration organization determines that some
other aspect of the arbitration process contemplated by this Exhibit A, but not addressed
by the preceding sentence, would cause the Exhibit A to be invalid, unenforceable, or not
subject to administration by the arbitration organization because the Employee is adversely
effected in some manner, the Company shall be given the option to remedy the perceived defect in
such a manner that arbitration may proceed.

     H. This Exhibit A shall survive the termination of Employee’s employment. This
Exhibit A can be modified only in a writing signed by Employee and an officer of Zix
Corporation that specifically states an intent to resolve or modify this Exhibit A.

					
	 	 	 	 	 
	 
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     I. EMPLOYEE ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS AGREEMENT; THAT HE HAS BEEN GIVEN THE
OPPORTUNITY TO DISCUSS THIS AGREEMENT WITH PRIVATE LEGAL COUNSEL AND HAS MADE USE OF THAT
OPPORTUNITY TO THE EXTENT HE WISHES TO DO SO; THAT HE UNDERSTANDS ITS TERMS; THAT ALL
UNDERSTANDINGS BETWEEN EMPLOYEE AND THE COMPANY RELATING TO THE SUBJECTS COVERED IN THIS
EXHIBIT A ARE CONTAINED IN THIS EXHIBIT A AND THAT HE HAS ENTERED INTO THIS
EXHIBIT A VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE COMPANY
OTHER THAN THOSE CONTAINED IN THIS EXHIBIT A ITSELF.

					
	 	 	 	 	 
	 
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Initialexv10w29

Exhibit 10.29

Execution Version

AMENDED AND RESTATED SEPARATION PAY AGREEMENT

     THIS AMENDED AND RESTATED SEPARATION PAY AGREEMENT (this “Agreement”), dated December 18,
2008, is between Zix Corporation, a Texas corporation (the “Company”), and Susan K. Conner
(“Employee”) and hereby amends and restates that certain Separation Pay Agreement, dated November
4, 2008, and effective as of October 16, 2008 between the parties.

     WHEREAS, Employee is currently employed by the Company;

     WHEREAS, Employee is willing to continue working for the Company on an “at will” basis;

     NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and
agreements of the parties herein contained, the parties agree as follows:

1. Definitions.

     A. Acquiring Person. An “Acquiring Person” shall mean any person (including any
“person” as such term is used in Sections 13(d)(3) or 14(d)(2) of the Exchange Act that, together
with all Affiliates and Associates of such person, is the beneficial owner (as the term “beneficial
owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the
Exchange Act)) of 10% or more of the outstanding Common Stock. The term “Acquiring Person” shall
not include the Company, any majority-owned subsidiary of the Company, any employee benefit plan of
the Company or a majority—owned subsidiary of the Company, or any person to the extent such person
is holding Common Stock for or pursuant to the terms of any such plan. For the purposes of this
Agreement, a person who becomes an Acquiring Person by acquiring beneficial ownership of 10% or
more of the Common Stock at any time after the date of this Agreement shall continue to be an
Acquiring Person whether or not such person continues to be the beneficial owner of 10% or more of
the outstanding Common Stock.

     B. Affiliate and Associate. “Affiliate” and “Associate” shall have the respective
meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the
Exchange Act in effect on the date of this Agreement.

     C. Cause. “Cause” shall mean any of the following shall have occurred: (1) the
intentional and continued failure by Employee to substantially perform Employee’s employment
duties, such intentional action involving willful and deliberate malfeasance or gross negligence in
the performance of Employee’s duties (other than any such failure resulting from Employee’s
incapacity due to physical or mental illness), after written demand for substantial performance is
delivered by the Company’s Board of Directors (hereinafter, referred to as the “Board”) that
specifically identifies the manner in which the Board of Directors believes Employee has not
substantially performed Employee’s duties and that is not cured within five business days after
notice thereof by the Company to Employee; (2) the intentional engaging by Employee in misconduct
that is materially injurious to the Company; (3) the conviction of Employee or a plea of nolo
contendere, or the substantial equivalent to either of the foregoing, of or with respect to,

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any felony; (4) the commission of acts by Employee of moral turpitude that are injurious to
the Company; (5) a breach by Employee of the “confidentiality and invention” agreement between the
Company and Employee; (6) a breach by Employee of Employee’s obligations under this Agreement; or
(7) a breach by Employee of the Company’s “Code of Ethics for Senior Officers,” as currently in
effect or amended from time-to-time. For purposes of this definition, no act, or failure to act,
on Employee’s part shall be considered “intentional” unless done, or omitted to be done, by him not
in good faith and without reasonable belief that his action or omission was in, or not opposed to,
the best interest of the Company.

     Notwithstanding the foregoing, Employee shall not be deemed to have been terminated for Cause
without (1) reasonable written notice to Employee, setting forth the reasons for the Company’s
intention to terminate for Cause; (2) an opportunity for Employee to be heard before the Board (or
an authorized representative thereof; and (3) delivery to Employee of a written notice of
termination from the Board (or its authorized representative) finding that, in the good faith
opinion of the Board (or its authorized representative), Employee engaged in the conduct set forth
above in clause (1) or (2) of the preceding paragraph or an event specified in clause (3), (4),
(5), (6) or (7) of the preceding paragraph has occurred.

     D. Change in Control. A “Change in Control” of the Company shall have occurred if any
of the following events shall occur during the term of Employee’s employment:

     (1) The Company is merged, consolidated or reorganized into or with another corporation
or other legal person, other than an Affiliate, and as a result of such merger,
consolidation or reorganization, the Company or its shareholders or Affiliates immediately
before such transaction beneficially own, immediately after or as a result of such
transaction, equity securities of the surviving or acquiring corporation or such
corporation’s parent corporation possessing less than 51% of the voting power of the
surviving or acquiring person or such person’s parent corporation;

     (2) The Company sells all or substantially all of its assets to any other corporation
or other legal person, other than an Affiliate, and as a result of such sale, the Company or
its shareholders or Affiliates immediately before such transaction beneficially own,
immediately after or as a result of such transaction, equity securities of the surviving or
acquiring corporation or such corporation’s parent corporation possessing less than 51% of
the voting power of the surviving or acquiring person or such person’s parent corporation
(provided that this provision shall not apply to a registered public offering of securities
of a subsidiary of the Company, which offering is not part of a transaction otherwise a part
of or related to a Change in Control);

     (3) Any Acquiring Person has become the beneficial owner (as the term “beneficial
owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the
Exchange Act) of securities which, when added to any securities already owned by such
person, would represent in the aggregate 35% or more of the then outstanding securities of
the Company which are entitled to vote to elect any class of directors;

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     (4) If, at any time, the Continuing Directors then serving on the Board cease for any
reason to constitute at least a majority thereof;

     (5) Any occurrence that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A or any successor rule or regulation promulgated under the
Exchange Act; or

     (6) Such other events that cause a Change in Control of the Company, as determined by
the Board in its sole discretion.

     E. Continuing Director. A “Continuing Director” shall mean a director of the Company
who (1) is not an Acquiring Person or an Affiliate or Associate thereof, or a representative of an
Acquiring Person or nominated for election by an Acquiring Person, and (2) was either (a) a member
of the Board on the date of this Agreement or (b) subsequently became a director of the Company and
whose initial election or initial nomination for election by the Company’s shareholders was
approved by a majority of the Continuing Directors then on the Board.

     F. Company. The “Company” shall mean Zix Corporation, a Texas corporation, or its
successors in interest, as the context requires.

     G. Exchange Act. “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended.

2. Termination Without Cause Payment. If the Company terminates Employee’s employment
other than for Cause, the Company shall pay to Employee an amount equal to nine (9) months
of Employee’s base salary, using Employee’s highest monthly base salary during the term of
Employee’s employment (the “Termination Without Cause Payment”) pursuant to Section 4.

3. Change In Control Payment. If Employee resigns from employment (subject to the notice
and cure provisions noted below) with the Company and its Affiliates following a Change in Control
for a “Change In Control Good Reason,” as such term is defined below, the Company shall pay to
Employee an amount equal to nine (9) months of Employee’s base salary, using Employee’s highest
monthly base salary during the term of Employee’s employment (the “Change In Control Payment”)
pursuant to Section 4.

     A “Change In Control Good Reason” shall mean (i) a material diminution in the Employee’s
authority, duties or responsibilities, (ii) a material diminution in the Employee’s base salary,
(iii) a material change in the geographic location at which the Employee must perform services,
(iv) a material diminution in the authority, duties, or responsibilities of the supervisor to whom
the Employee is required to report, including a requirement that the Employee report to a corporate
officer or employee instead of the board of directors (or similar governing body), (v) a material
diminution in the budget over which the Employee retains authority, or (vi) any other event that
constitutes a material breach by the Company of the agreement under which the Employee provides
services.

- 3 -

 

     Notwithstanding the preceding provisions, Employee shall not be permitted to resign
employment for a “Change In Control Good Reason” until (a) Employee has provided to the Company
notice of the existence of the good reason condition within 90 days of its initial existence and
(b) the Company has not remedied the good reason condition within a period of 30 days from the
Company’s receipt of such notice. Following the satisfaction of (a) and (b), Employee must
exercise her right to resign for a Change in Control Good Reason within 60 days (i.e., such Change
in Control Good Reason resignation must occur within 180 days of the occurrence of the good reason
event), with the day immediately following the existence of the good reason condition being day
“1.”

4. Mode of Payment; Acceptance; No Overlapping Payments. The Termination Without Cause
Payment or Change In Control Payment, as applicable, shall be paid to Employee in nine (9) equal
monthly cash payments beginning as soon as practicable following her termination of employment but
no later than 60 days following such termination, subject to the Company’s receipt of a release in
a form reasonably satisfactory to the Company relating to employment matters. The Company will
provide the form release to Employee within 5 days of the date of the event giving rise to the
payment. In the event that Employee fails to execute such release within such 60 day time period,
she shall forfeit the Termination Without Cause Payment or Change in Control Payment, as
applicable. Employee shall be responsible for all applicable withholdings for taxes and other
withholdings required by applicable law and any amounts owed by Employee to Company, and Employee
shall pay the same to the Company promptly upon demand if not otherwise withheld. The Company’s
obligation to make the payments provided for in Sections 2 and 3 is absolute, and such payments
shall not be mitigated or offset by virtue of Employee obtaining new employment or failing to seek
new employment. Acceptance by Employee of the Termination Without Cause Payment (Section 2) or
Change In Control Payment (Section 3), as applicable, shall constitute a release by Employee of the
Company and its Affiliates, shareholders, officers, employees, directors and other agents from all
claims arising out of, relating to, or in connection with, Employee’s employment with, or
separation from employment with, the Company and its Affiliates.

Employee shall be entitled to receive pursuant to this Agreement only one of the following payments
(a) the Termination Without Cause Payment (Section 2), or (b) the Change In Control Payment
(Section 3) (i.e., not more than one of any such payments is payable pursuant to this Agreement).

5. Conflict of Interest. Without limiting the Employee’s obligations to comply with the
Company’s Code of Conduct and Code of Ethics, Employee agrees that during the term of Employee’s
employment, Employee shall not:

     A. Engage, either directly or indirectly, in any activity which may involve a conflict
of interest with the Company or its Affiliates (a “Conflict of Interest”), including
ownership in any supplier, contractor, subcontractor, customer or other entity with which
the Company does business (other than as a shareholder of less than one percent (1%) of a
publicly-traded or private class of equity ownership); and

     B. Employee shall not accept any material payment, service, loan, gift, trip,
entertainment or other favor from a supplier, contractor, subcontractor, customer or other

- 4 -

 

entity with which the Company does business, and Employee shall promptly inform the
Board as to each offer received by Employee to engage in any such activity.

Employee agrees to disclose to the Company any other facts of which Employee becomes aware
that might involve or give rise to a Conflict of Interest or potential Conflict of Interest.

6. Non-competition. Beginning the date that Employee separates from employment with the
Company and through the nine (9) month anniversary of such separation from employment date,
Employee shall not:

     A. Directly or indirectly, compete with the Company’s Email Encryption business or
e-Prescribing business or any other material line of business being conducted by the Company
(“Other Material Business’), in each case, as the Email Encryption line of business,
e-Prescribing line of business, or Other Material Business line of business is comprised as
of the date of the Employee’s separation from employment. For purposes of this Agreement,
“Competition” shall include, without limitation, engaging, directly or indirectly, in any
business, whether as proprietor, partner, joint venturer, employee, agent, officer,
director, consultant, advisor, or holder of more than one percent (1%) of any publicly
traded or private class of equity ownership of a business enterprise, that is competitive
with the Company’s Email Encryption business or e-Prescribing business or Other Material
Business;

     B. Directly or indirectly, solicit to do, or do, competing business with (i) any person
that is a customer of the Company’s Email Encryption business or e-Prescribing business or
Other Material Business as of the date of the Employee’s separation from employment, or (ii)
any person that has been a customer of the Company’s Email Encryption business or
e-Prescribing business or Other Material Business within the six months preceding such date;
or

     C. Directly or indirectly, solicit to hire, or hire, any person that is an employee of
the Company (including its affiliated companies) as of the date of the Employee’s separation
from employment, or was an employee within the 3 month period preceding such date, except by
way of bona-fide general advertising.

     Although the Company and Employee have, in good faith, used their best efforts to make
the covenants of this Section reasonable in all pertinent respects, and it is not
anticipated, nor is it intended, by either party to this Agreement that any arbitrator or
court will find it necessary to reform any of such covenants to make it reasonable in all
pertinent respects, the Company and Employee understand and agree that if an arbitrator or
court determines it necessary to reform any of such covenants to make it reasonable in all
pertinent respects, damages, if any, for a breach of the non-competition covenant, as so
reformed, shall be deemed to accrue to the Company as and from the date of such a breach
only and so far as the damages for such breach related to an action that accrued within the
scope of the covenant as so reformed.

- 5 -

 

7. Miscellaneous.

     A. Pending Litigation Indemnification. During Employee’s employment and
following Employee’s separation from employment, with respect to any lawsuits currently
pending or hereafter asserted against the Company that pertain to (i) matters reasonably
within the purview of Employee’s job responsibilities while employed with the Company or
(ii) matters for which the Employee has particular knowledge, Employee agrees to cooperate
reasonably in the defense of the litigation thereof, including signing affidavits and making
himself or herself available for interviews, deposition preparation, deposition, and trial.
If Employee is requested to assist with litigation activities following Employee’s
separation from employment other than those litigation activities in which Employee would be
required to participate as a named party, the Company agrees to pay all reasonable
documented out-of-pocket costs up to a maximum of $1,000 per day incurred in connection with
such activities and lost income incurred during the period in which Employee assists with
such litigation activities (not to exceed the lesser of the amount of lost income or $10,000
in any one tax year). Such out-of-pocket reimbursement payments shall be made as soon as
practicable after Employee provides documentation of such out-of-pocket costs but no later
than the end of the tax year following the tax year in which such expenses were incurred.
The amount of expenses reimbursed to the Employee pursuant to this Section 7.A. during the
Employee’s tax year shall not impact the amount of such expenses eligible for reimbursement
during any other tax year of the Employee. Employee’s right to reimbursement of such
expenses shall not be subject to liquidation or exchange for another benefit. The lost
income reimbursement will be paid in a lump sum within 60 days after Employee provides
documentation of the same and such payment will be subject to the six month delay applicable
to specified employees under section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”). Without the Company’s prior consent, Employee agrees not to comment publicly
on any such litigation or any of the issues in the litigation. Without the Company’s prior
consent, Employee also agrees not to discuss any such litigation, or cooperate, with the
plaintiffs, their attorneys, or their representatives. The Company acknowledges that the
Employee has certain rights to indemnification as an officer of the Company as set forth in
the Company’s Restated Bylaws if the Employee is named as a party in litigation.

     B. Waiver. No waiver of any provision 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 waiver of any continuing or succeeding breach of such provision, a
waiver of the provision itself, or a waiver of any right under this Agreement. No waiver
shall be binding unless executed in writing by the party making the waiver.

     C. Limitation of Rights. Nothing in this Agreement, except as specifically
stated in this Agreement, is intended to confer any rights or remedies under or by reason of
this Agreement on any persons other than the parties to it and their respective permitted
successors and assigns and other legal representatives.

     D. Remedies. Employee hereby agrees that a violation of the provisions of
Section 5, Section 6, or Section 7.A. would cause irreparable injury to the Company for

- 6 -

 

which it would have no adequate remedy at law. Accordingly, in the event of any such
violation, the Company shall be entitled to preliminary and other injunctive relief. Any
such injunctive relief shall be in addition to any other remedies to which the Company may
be entitled at law or in equity, or otherwise.

     E. Notice. Any consent, notice, demand, or other communication regarding any
payment required or permitted hereby must be in writing to be effective and shall be deemed
to have been received on the date delivered, if personally delivered, or the date received,
if delivered otherwise, addressed to the applicable party at the address for such party set
forth below or at such other address as such party may designate by like notice:

The Company:

Zix Corporation

2711 North Haskell Avenue

Suite 2200, LB 36

Dallas, Texas 75204-2960, Attn: General Counsel

If to Employee, to the address on file in the Company’s records.

     F. Entirety and Amendments. This Agreement embodies the entire agreement
between the parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings relating to the subject matter hereof This Agreement is the
separation pay agreement referred to in that certain employment offer letter addressed to
Employee, dated October 6, 2008.

     G. Successors and Assigns. This Agreement will be binding upon and inure to
the benefit of the parties to this Agreement and any successors-in-interest to the Company,
but otherwise, neither this Agreement nor any rights or obligations under this Agreement may
be assigned by Employee.

     H. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Texas (excluding its conflict of laws
rules) and applicable federal law.

     I. Cumulative Remedies. No remedy in this Agreement conferred upon any party
is intended to be exclusive of any other benefit or remedy, and each and every such remedy
shall be cumulative and shall be in addition to every other benefit or remedy given under
this Agreement or now or hereafter existing at law or in equity or by statute or otherwise.
No single or partial exercise by any party of any right, power, or remedy under this
Agreement shall preclude any other or further exercise thereof.

     J. Multiple Counterparts. This Agreement may be executed in a number of identical
counterparts, each of which constitute collectively, one agreement; but making proof of this
Agreement, it shall not be necessary to produce or account for more than one counterpart.

- 7 -

 

     K. Descriptive Headings. The headings, captions, and arrangements used in this
Agreement are for convenience only and shall not be deemed to limit, amplify, or modify the
terms of this Agreement, nor affect the meaning hereof.

     L. Arbitration. The Company and the Employee acknowledge that they have
executed that certain mutual alternate dispute resolution agreement, dated October 24, 2008
(the “Arbitration Agreement”). The Company and the Employee agree that, except as otherwise
provided in the Arbitration Agreement, all claims, demands, causes of action, disputes,
controversies, or other matters in question (“Claims”), whether sounding in contract, tort,
or otherwise and whether provided by statute or common law, arising under this Agreement or
the Employee’s employment (or its termination) are governed by the Arbitration Agreement.

     M. 409A Compliance. This Agreement, as amended, is intended to be exempt from
and/or comply with the requirements (and not otherwise be subject to the interest and
penalty taxes of) section 409A of the Code and the regulations and other guidance issued
thereunder, and shall be interpreted in a manner consistent with that intent.
Notwithstanding the foregoing, in the event there is a failure under this Agreement to
comply with section 409A of the Code, the Company shall have the discretion to accelerate
any payment hereunder of “nonqualified deferred compensation” (within the meaning of section
409A of the Code), but only to the extent of the amount required to be included in income as
a result of such failure.

     IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year
first above written.

	 	 	 	 	 	 	 
	 	 	ZIX CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard D. Spurr
 

Richard D. Spurr, Chairman & CEO
	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	12-26-08
 

	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Susan K. Conner	 	 
	 	 	 	 	 
	 	 	     Susan K. Conner	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	12-24-08	 	 
	 

	 	 	 	 	 	 

- 8 -

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