Document:

exv10w5

 

Exhibit 10.5

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. 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. Change in Control. A “Change in Control” of the Company shall have occurred if
during the term of this Agreement, any of the following events shall occur:

     (i) The Company is merged, consolidated or reorganized into or with another corporation
or other legal person and as a result of such merger, consolidation or reorganization, the
Company or its shareholders or Affiliates immediately before such

Change in Control

1

 

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 fifty-one percent (51%) of the voting power of the surviving or acquiring person or
such person’s parent corporation;

     (ii) The Company sells all or substantially all of its assets to any other corporation
or other legal person 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 fifty-one percent (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);

     (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;

     (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) The employment of the Optionee is terminated by the Company without “cause,” as
such term is defined in Paragraph 4 below, following the public announcement by the Company
of the pendency of any of the events specified in clauses (i) through (v) of this definition
of “Change in Control” and prior to the actual occurrence of any of such events.

     d. Continuing Director. 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) a member
of the Board of Directors of the Company 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 of Directors of the Company.

     e. 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

Change in Control

2

 

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.

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

     g. 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.

     h. 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.

3. Exercise of Option.

     a. Exercise. This Option shall become exercisable in increments as set forth in the
Signature Page. However, this Option shall become exercisable upon the occurrence of a Change in
Control as to all options that have not vested as of the occurrence of the Change in Control.
Except as provided in the Plan or Paragraph 4 below, 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

Change in Control

3

 

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.

     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 of
such termination and with respect to all options that are vested as of the day of such employment
termination (including without limitation, those that vest pursuant to the second sentence of
subparagraph 3.a.), (i) at any time within the sixty-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 (ii) at any time within the one-year period commencing on the day next following
such termination in the case of any other Qualified Termination (or in any such case in (i) or (ii)
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

Change in Control

4

 

purposes of this Paragraph,
(A) “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, or (B)
if there is an employment agreement, severance agreement, or other similar agreement between the
Optionee and the Company (regardless of whether such agreement exists on the date of this Agreement
or is entered into hereafter) then, notwithstanding the provisions of clause (A) of this sentence,
“cause” shall have the meaning given such term in the employment agreement, severance agreement, or
other similar agreement.

     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).

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 comply or 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

Change in Control

5

 

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.

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 twelve months after Optionee ceases to

Change in Control

6

 

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
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

Change in Control

7

 

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 of 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
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 2200, 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
delivered in person or sent by registered or certified mail, shall be deemed to have been given
when received.

	 	 	 	 	 	 	 
	 	 	ZIX CORPORATION	 	 
	 
	 	 	 	 	 	 
	Date: 4/27/07

	 	By:
	 	/s/ Barry W. Wilson
 

	 	 
	 

	 	 	 	Barry W. Wilson	 	 
	 

	 	 	 	Chief Financial Officer and Treasurer	 	 

Change in Control

8

 

	 	 	 
	Zix Corporation (TX)
	 	 
	2711 N. Haskell Avenue

	 	 Signature Page 
	Suite 2200

	 	Sign and return to the legal department
	Dallas, Texas 75204
	 	 
	United States
	 	 

Issuance Information

	 	 	 	 	 
	Effective Date of Grant:

	 	December 18, 2006
	 	 
	Name of Optionee:

	 	Woessner, Ron	 	 
	Number of Shares:

	 	80,000.00	 	 
	Exercise Price:

	 	$1.50	 	 
	Plan Name:

	 	2004 Stock Option Plan	 	 
	Expiration Date:

	 	December 17, 2016	 	 

	 	 	 	 	 	 	 	 	 
	Vesting Schedule:	 	Number of Shares:	 	 	Vest Date:
	 
	 	 	6,666.66	 	 	March 18, 2007
	 
	 	 	6,666.66	 	 	June 18, 2007
	 
	 	 	6,666.66	 	 	September 18, 2007
	 
	 	 	6,666.66	 	 	December 18, 2007
	 
	 	 	6,666.66	 	 	March 18, 2008
	 
	 	 	6,666.66	 	 	June 18, 2008
	 
	 	 	6,666.66	 	 	September 18, 2008
	 
	 	 	6,666.66	 	 	December 18, 2008
	 
	 	 	6,666.66	 	 	March 18, 2009
	 
	 	 	6,666.66	 	 	June 18, 2009
	 
	 	 	6,666.66	 	 	September 18, 2009
	 
	 	 	6,666.66	 	 	December 18, 2009

	 	 	 	 	 
	/s/ Ronald A.Woessner

	 	 	 	Date: 4/27/07
	 

Optionee Signature

	 	 	 	 

					
	 
	 	Equity Enterprise
	 	Page 1 of 1exv10w6

 

Exhibit 10.6

SUBLEASE

     This Sublease is made on April 11, 2007, by and between POCKETSCRIPT, INC., an Ohio
corporation (herein the “Sublessor”) and Haverstick Consulting, Inc., an Indiana corporation
(herein the “Sublessee”).

WITNESSETH:

     WHEREAS, the Sublessor is presently the Tenant under a Lease dated March 9, 2004, between DUKE
REALTY OHIO, an Indiana general partnership, as Landlord, and Sublessor, as Tenant herein referred
to as the “Master Lease”.

     WHEREAS, the Sublessor and the Sublessee have agreed to a subletting of the Demised Premises
on the terms and conditions specified in this Sublease;

     NOW THEREFORE, the Sublessor and the Sublessee do hereby enter into this Sublease upon the
terms and conditions hereinafter set forth.

     1. DEMISED PREMISES. The Sublessor hereby lets to the Sublessee and the Sublessee does hereby
hire from the Sublessor that portion of the property known as: Suite 207; 2nd floor;
Building name: 4770 Governor’s Pointe; address: 4770 Duke Drive, Mason, Ohio 45040, more
particularly as shown in Exhibit A to the Master Lease, consisting of approximately 5,608 rentable
square feet of the building.

     2. TERM. The term of this sublease shall be 28 months, commencing on July 1, 2007, and
terminating on October 31, 2009. Any remaining options, if any, under the Master lease are not
exercisable by the Sublessee.

     3. RENT. Sublessee shall pay to the Sublessor aggregate Basic Rent of Six Thousand Five
Hundred Forty-Two ($6,542.00) DOLLARS per month, on the first day of each month. Sublessee shall
not owe rent for the month of July 2007.

     4. OTHER RENT AND PAYMENTS.

     4.1 Sublessee shall not be subject to any Annual Rental Adjustment (as defined in Section
3.02.A. of the Master Lease).

     4.2 Interest and Late Charges. All rent and other payments not paid when due shall
bear interest from the due date until fully paid at the rate of Eighteen (18%) percent per annum.
In addition, Sublessee acknowledges that late payment of any rent or other payment required by this
Lease from Sublessee to Sublessor will result in collection costs to Sublessor, the extent of which
additional costs is extremely difficult and economically impractical to ascertain. Sublessee
therefore agrees that if Sublessee fails to make any rent and/or other payment(s) required by this
Lease to be paid to Sublessor when it is due, Sublessor may elect to impose a late charge in the
amount of Five (5%) of the current monthly base rent. Additionally, Sublessee shall reimburse
Sublessor for all costs and expenses, including attorneys’ fees, incurred in collecting the overdue
rent and/or other payment(s). Sublessee shall pay the late charge upon demand by Sublessor.
Sublessee agrees that the late charge is a reasonable estimate of the costs to Sublessor of
collecting the overdue rent and/or other payment(s). Sublessor may levy and collect a late charge
in addition to all other remedies available for Sublessee’s default, and collection of a late
charge shall not waive the breach caused by the late payment.

     5 . SECURITY DEPOSIT AND LAST MONTH’S RENT. Sublessee shall deposit with Sublessor
upon execution hereof $6,542.00 as security deposit for Sublessees’ faithful

-1-

 

performance of Sublessee’s obligations hereunder. If Sublessee fails to pay rent or other
charges due hereunder, or otherwise defaults with respect to any provision of this Sublease,
Sublessor may use, apply or retain all or any portion of said deposit for the payment of any rent
or other charge in default or for the payment of any other sum to which Sublessor may become
obligated by reason of Sublessee’s default, or to compensate Sublessor for any loss or damage which
Sublessor may suffer thereby. If Sublessor so uses or applies all or any portion of said deposit,
Sublessee shall within ten (10) days after written demand therefore deposit cash with Sublessor in
an amount sufficient to restore said deposit to the full amount hereinabove stated and Sublessee’s
failure to do so shall be a material breach of this Sublease. Sublessor shall not be required to
keep said deposit separate from its general accounts. If Sublessee performs all of Sublessee’s
obligations hereunder, said deposit, or so much thereof as has not theretofore been applied by
Sublessor, shall be returned, without payment of interest or other increment for its use to
Sublessee (or at Sublessor’s option, to the last assignee, if any, of Sublessee’s interest
hereunder) at the expiration of the term hereof, and after Sublessee has vacated the Premises. No
trust relationship is created herein between Sublessor and Sublessee with respect to said Security
Deposit

     6. USE. Sublessee shall use and occupy the Subleased Premises only for office space and for
no other purpose.

     7. CONDITION OF PREMISES. Sublessee accepts the Demised Premises in its current “as
is” condition with all faults.

     1.) Phones – The phone is operated using a “Switch” that is located in Dallas. Sublessee will
need its own switch to operate the phones.

     2.) Computer Equipment – Existing Dell and Cisco equipment will be removed by Sublessor no
later than June 15, 2007.

     8. BROKERAGE. Sublessor and Sublessee do hereby warrant and represent to each other that
neither has dealt with any broker in connection with this transaction other than Dan McDonald of
Carey Laumer Commercial Realty and Bill Wiebe of Vollmer Realty (collectively referred to as the
“Authorized Brokers.”) Sublessor shall be solely responsible for payment of any and all commission
or other compensation due and payable to the Authorized Brokers and shall indemnify Sublessee from
and against any claim therefor. Each of Sublessor and Sublessee do hereby agree to indemnify,
defend, and hold harmless the other from and against all claims, judgments, damages, penalties,
fines, costs, liabilities, or losses and sums paid in settlement of claims, attorneys’ fees,
consultant fees, and expert fees) arising from any claims or demands of any broker, agent, or
finder with whom it has dealt (other than the commission or other compensation due to the
Authorized Brokers, which are to be paid by Sublessor as stated in the immediately preceding
sentence).

     9. NOTICES.

          9.1 Address for Notices. All notices, requests, demands and other communications required or
permitted to be given hereunder shall be deemed to have been duly given if in writing and sent by
certified mail, return receipt requested, postage prepaid, or delivered by an overnight courier
service, as follows:

	 	 	 	 	 
	 

	 	If to Sublessee:
	 	Haverstick Consulting Inc.
	 

	 	 	 	11405 N. Pennsylvania Street
	 

	 	 	 	Suite 200
	 

	 	 	 	Carmel, IN 46032
	 

	 	 	 	Attn: Eric Weber

-2-

 

	 	 	 	 	 
	 

	 	If to Sublessor:
	 	Pocketscript, Inc.
	 

	 	 	 	2711 N. Haskell Avenue, Suite 2200
	 

	 	 	 	Dallas, TX 75204-2960
	 

	 	 	 	Telephone: 214-370-2042
	 

	 	 	 	Facsimile: 214-370-2071
	 

	 	 	 	Attn:Nathan Gulley
	 

	 	 	 	Attn: ZixCorp Legal Department
	 
	 	 	 	 
	 

	 	If to Master Lessor:
	 	Duke Realty Ohio
	 

	 	 	 	Attn: Vice President, Property Management
	 

	 	 	 	4555 Lake Forest Drive, Suite 400
	 

	 	 	 	Cincinnati, OH 45242

          9.2 Change of Address. Sublessor or Sublessee may change the address to which such
communications are to be directed to it by giving written notice to the other provided in
Section 9.1.

     10. LANDLORD’S CONSENT. This Sublease is contingent upon the consent of the Landlord, as
required by Article 11 of the Master Lease.

     11. APPLICABILITY OF MASTER LEASE.

          11.1 This Sublease is and shall be at all times subject and subordinate to the Master Lease.

          11.2 Except for the obligations under sections 3.01 thru 3.05 of the Master Lease (which
Sublessee shall not be required to comply with), the terms, conditions and respective
obligations of Sublessor and Sublessee to each other under this Sublease shall be the terms and
conditions of the Master Lease except for those provisions of the Master Lease which are
contradicted by this Sublease in the sole determination of Sublessor in which event, as between
Sublessor and Sublessee, the terms of this Sublease document shall control over the Master Lease;
provided that, without limiting the generality of the foregoing, the parties agree that Article 4
(“Security Deposit”) of the Master Lease shall not be applicable to this Lease and that Sublessee
shall have not have any rights under Section 16.12 (“Option to Terminate”) of the Master Lease.
Therefore, for the purposes of this Sublease, wherever in the Master Lease the word “Lessor” or
“Landlord” is used it shall be deemed to mean the Sublessor herein and wherever in the Master Lease
the word “Lessee” or “Tenant” is used it shall be deemed to mean the Sublessee herein.

          11.3 During the term of this Sublease and for all periods subsequent for obligations which
have arisen prior to the termination of this Sublease, except for the obligations under sections
3.01 thru 3.05 of the Master Lease, Sublessee does hereby expressly assume and agree to perform and
comply with, for the benefit of Sublessor and Master Lessor each and every obligation of
Sublessor/Tenant under the Master Lease, including without limitation Section 9.02 thereof (except
that the Sublessee shall name the Sublessor and the Landlord in the Sublessee’s insurance policies
where Section 9.02 provides that the Sublessor is to name the Landlord). Sublessee shall
indemnify, defend, and hold harmless Sublessor and Landlord from and against all claims, judgments,
damages, penalties, fines, costs, liabilities, or losses (including, without limitation, diminution
in value of the Demised Premises, damages for the loss or restriction on use of rentable or usable
space or of any amenity of the Demised Premises, damages arising from any adverse impact on
marketing of space, and sums paid in settlement of claims, attorneys’ fees, consultant fees, and
expert fees) arising out of Sublessee’s failure to perform any such terms or conditions, provided,
however, that Sublessee shall be relieved of any obligation to indemnify Sublessor and Landlord to
the extent of insurance proceeds actually received by them.

-3-

 

     12. ASSUMPTION.

          Except as otherwise provided in Section 11.3 of this Lease, Sublessee expressly assumes to
perform and comply with all of the obligations required to be kept or performed by the Tenant under
the Master Lease identified in the foregoing paragraph of this Sublease, to the extent they are
applicable to the Demised Premises.

     13. OBLIGATIONS OF SUBLESSOR.

          Sublessor shall maintain the Master Lease during the entire term of this Sublease, subject
however to any earlier termination of the Master Lease in accordance with its terms, and comply
with and perform all of the obligations of the Tenant under the Master Lease that Sublessee has not
assumed under this Sublease.

     14. TERMINATION OF MASTER LEASE.

          If the Master Lease is terminated, this Sublease shall terminate simultaneously. If the
Master Lease is terminated other than by the fault of Sublessor or Sublessee, the Sublessor and
Sublessee shall thereafter be released form all obligations to each other under this Sublease, and
the parties shall account to each other for any monetary obligations or other obligations existing
at such time.

     15. AUTHORITY TO EXECUTE SUBLEASE AND CONSENT.

The persons executing this Sublease and Consent to Assignment declare and warrant that they occupy
the individual or corporate positions set forth under their signature, and have the consent and
authority to execute this document and thereby legally bind the entities they represent.

     16. EXECUTION; APPLICABLE LAW.

This Sublease is deemed executed in Ohio and shall be governed by and construed in accordance with
the laws of Ohio, without regard to conflicts of laws principles thereof.

     17. DEFAULT.

The following shall be events of default:

          17.1 Payment Default. Failure of Sublessee to make any rent or other payment under this Lease
when it is due.

          17.2 Unauthorized Transfer. Sublessee makes any transfer without Sublessor’s prior written
consent as required under Section 21 of this Lease(“ Subletting”).

          17.3 Abandonment of Demised Premises. Sublessee abandons the Demised Premises, for which
purpose “abandons” means a failure by Sublessee to occupy and use the Demised Premises for one or
more of the purposes permitted under this Lease for a total of thirty (30) days or more during the
lease term, unless such failure is excused under other provisions of this Lease.

          17.4 Default in Other Covenants. Failure of Sublessee to comply with any other term,
condition, covenant, or fulfill any other obligation of this Lease within ten (10) days after
written notice by Sublessor specifying the nature of the default with reasonable particularity. If
the default is of such a nature that it cannot be remedied fully within the ten (10) day period,
this requirement shall be satisfied if Sublessee begins correction of the default within the ten
(10) day period and thereafter proceeds with reasonable diligence and in good faith to effect the
remedy

-4-

 

as soon as practicable. No notice and no opportunity to cure shall be required if Sublessor
has previously given Sublessee notice of failure to comply with such term or condition or fulfill
such other obligation of this Lease during the term hereof.

          17.5 Insolvency Defaults. Dissolution, termination of existence, insolvency on a balance sheet
basis or business failure of Sublessee; the commencement by Sublessee of a voluntary case under the
federal bankruptcy laws or under any other federal or state law relating to insolvency or debtor’s
relief; the entry of a decree or order for relief against Sublessee in an involuntary case under
the federal bankruptcy laws or under any other applicable federal or state law relating to
insolvency or debtor’s relief; the appointment of or the consent by Sublessee to the appointment of
a receiver, trustee, or custodian of Sublessee or of any of Sublessee’s property; an assignment for
the benefit of creditors by Sublessee; Sublessee’s failure generally to pay its debts as such debts
become due; the making or suffering by Sublessee of a fraudulent transfer under applicable federal
or state law; concealment by Sublessee of any of its property in fraud of creditors; the making or
suffering by Sublessee of a preference within the meaning of the federal bankruptcy law; the
imposition of a lien through legal proceedings or distraint upon any of the property of Sublessee
which is not discharged or bonded; or all or substantially all of Sublessee’s assets in the Demised
Premises or Sublessee’s interest in this Lease are attached or levied under execution (and
Sublessee does not discharge the same within sixty (60) days thereafter). During any period in
which there is a Guarantor(s) of this Lease, each reference to “Sublessee” in this paragraph shall
be deemed to refer to “Guarantor or Sublessee, “ separately.

     18. REMEDIES ON DEFAULT.

Upon default, Sublessor shall have all remedies against Sublessee provided to Landlord against
Tenant under the Master Lease and, furthermore, Sublessor may exercise any one or more of the
following remedies, or any other remedy available under applicable law:

          18.1. Retake Possession. To the extent permitted by law, Sublessor may re-enter and retake
possession of the Demised Premises, without notice, either by summary proceedings, force, any other
applicable action or proceeding, or otherwise. Sublessor may use the Demised Premises for
Sublessor’s own purposes or relet it upon any reasonable terms without prejudice to any other
remedies that Sublessor may have by reason of Sublessee’s default. None of these actions will be
deemed an acceptance of surrender by Sublessee. To the extent permitted by law, Sublessee expressly
waives the service of any notice of intention to terminate this Lease or to retake the Demised
Premises, and waives service of any demand for payment of rent or for possession, and of any and
every other notice or demand required or permitted under applicable law.

          18.2. Relet the Premises. Sublessor at its option may relet the whole or any part of the
Demised Premises, from time to time, either in the name of Sublessor or otherwise, to such
Sublessees, for such terms ending before, on, or after the expiration date of the lease term, at
such rentals and upon such other conditions (including concessions and free rent periods) as
Sublessor, in its sole discretion, may determine to be appropriate. Sublessor at its option may
make such physical changes to the Demised Premises as Sublessor, in its sole discretion, considers
advisable or necessary in connection with any such reletting or proposed reletting without
relieving Sublessee of any liability under this Lease or otherwise affecting Sublessee’s liability.

          18.3. Damages for Default. Whether or not Sublessor retakes possession or relets the Demised
Premises, Sublessor may recover all damages caused by the default (including but not limited to
unpaid rent, attorneys’ fees, and the costs and expenses of reletting). Sublessor may sue
periodically to recover damages as they accrue during the remainder of the lease term without
barring a later action for further damages. Sublessor may at any time bring an action for accrued
damages plus damages for the remaining lease term equal to the difference between the rent
specified in this Lease and the reasonable rental value of the Demised

-5-

 

Premises for the remainder of the term, discounted to the time of judgment at the rate of nine
(9%) percent per annum.

          18.4. Cure of Sublessee’s Default. Without prejudice to any other remedy for default,
Sublessor may perform any obligation or make any payment required to cure a default by Sublessee.
The cost of performance, including attorneys’ fees and all disbursements, shall immediately be
repaid by Sublessee upon demand, together with interest from the date of expenditure until fully
paid at the rate of eighteen (18%) percent per annum, but not in any event at a rate greater than
the maximum rate of interest permitted by law.

     19. COMPLIANCE WITH LAWS. In connection with its use, Sublessee, throughout the term of this
Lease, and any renewal term, shall comply, at its sole cost(s) and expense(s) with all applicable
laws, regulations and requirements of any public authority, including, but not limited to, the
Americans with Disabilities Act, and including those regarding maintenance, operation, and use of
the Demised Premises and appliances on the Demised Premises (including signs).

     20. HAZARDOUS MATERIALS. Sublessee shall refrain from causing or permitting any
Hazardous Material (as hereinafter defined) to be brought upon, kept or used in or about the
Demised Premises by Sublessee, its agents, employees, contractors or invitees without the prior
written consent of Sublessor, which shall not be unreasonably withheld as long as Sublessee
demonstrates to Sublessor’s reasonable satisfaction that such Hazardous Material is necessary or
useful to Sublessee’s business and will be used, kept, and stored in the manner that complies with
all laws regulating any such Hazardous Material so brought upon or used or kept in or about the
Demised Premises.

As used herein, the term “Hazardous Material” means any hazardous or toxic substance, material or
waste, including, but not limited to, those substances, materials, and wastes listed in the United
States Department of Transportation Hazardous Materials Table (49 CFR 172.101) or by the United
States Environmental Protection Agency as Hazardous Substances (40 CFR Part 302) and amendments
thereto, petroleum products, or other such substances, materials and wastes that are or become
regulated under any applicable local, state, or federal law, health and or/safety related law,
decision of the courts, ordinances, rule, regulation, code, order, directive guideline, or permit.

          20.1. No Underground Storage Tanks. Sublessee shall not use, construct, or install any
underground storage tanks of any kind on the Demised Premises.

          20.2. Hazardous Materials Indemnification. Sublessee shall indemnify, defend, and hold
Sublessor harmless from any and all claims, judgments, damages, penalties, fines, costs,
liabilities, or losses (including, without limitation, diminution in value of the Demised Premises,
damages for the loss or restriction on use of rentable or usable space or of any amenity of the
Demised Premises, damages arising from any adverse impact on marketing of space, and sums paid in
settlement of claims, attorneys’ fees, consultant fees, and expert fees) which arise during or
after the lease term as a result of contamination by Hazardous Material as a result of Sublessee’s
use or activities, or of Sublessee’s agents or contractors. This Indemnification of Sublessor by
Sublessee includes, without limitation, costs incurred in connection with any investigation of site
conditions or any cleanup, remedial, removal, or restoration work required by any federal, state,
or local governmental agency or political subdivision because of Hazardous Material present in the
soil or ground water on or under the Demised Premises. Without limiting the foregoing, if the
presence of any hazardous material on the Demised Premises caused or permitted by Sublessee or its
agents or contractors results in any contamination of the Demised Premises, Sublessee shall
promptly take all actions, at its sole expense, as are necessary to return the Demised Premises to
the condition existing prior to the release of any such hazardous material to the Demised Premises;
provided that Sublessor’s approval of such actions shall first be obtained, which approval shall
not be unreasonably withheld so long as such action would not potentially have any material adverse
long-term or

-6-

 

short term on the Demised Premises. The foregoing indemnity shall survive the expiration or
earlier termination of this Lease.

     21. SUBLETTING. Sublessee shall not, voluntarily or involuntarily or by operation of law,
assign, mortgage or encumber all or part of this lease, nor sublet, nor suffer or permit the
Demised Premises or any part thereof to be used by others, without the prior written consent of
Sublessor in each instance, or sublet the whole or any part of the Demised Premises without first
obtaining the Sublessors written consent, which consent may be withheld in Sublessor’s sole
discretion.

     22. INSPECTION. Sublessor or its authorized representatives may enter at any time to determine
Sublessee’s compliance with this Lease, to make necessary repairs, or to show the Demised Premises
to any prospective Sublessees, Tenants, or purchasers.

     IN WITNESS WHEREOF, the parties hereto have executed this Sublease as of the day and year
written adjacent to the signature of the parties or their duly authorized representative.

	 	 	 	 	 	 	 
	WITNESS:

	 	 	 	SUBLESSOR:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	POCKETSCRIPT, INC., an Ohio corporation
	 	 
	 
	 	 	 	 	 	 
	          /s/ Darleen Harris

	 	 	 	          /s/ Barry Wilson	 	 
	 

	 	 	 	 	 	 
	Name: Darleen Harris

	 	 	 	Signature	 	 
	 

	 	 	 	Barry Wilson, CFO	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Printed Name of Signature and Title	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date: 4/11/07	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	SUBLESSEE:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	HAVERSTCICK CONSULTING, INC,	 	 
	 

	 	 	 	an Indiana corporation	 	 
	 
	 	 	 	 	 	 
	          /s/ Kelley Hahn

	 	 	 	           /s/ Eric Weber	 	 
	 

	 	 	 	 	 	 
	Name: Kelley Hahn

	 	 	 	Signature	 	 
	 

	 	 	 	Eric Weber, CFO	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Printed Name of Signature and Title	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date: 4/11/07	 	 

-7-

 

EXHIBIT “A”

MASTER LEASE WITH AMENDMENTS

 

 

EXHIBIT “B”

LANDLORD’S CONSENT TO SUBLEASE

(1). Tenant is and shall continue to remain fully and primarily liable to Landlord under the terms
and conditions of the Lease Agreement between Landlord and Tenant for the full term of the Lease
Agreement. Landlord specifically prohibits an Assignment of the Lease Agreement by Tenant. Tenant
and Subtenant hereby acknowledge and agree that the Sublease Agreement between them is a Sublease
and not an Assignment. This Agreement is a Consent to Sublease and is not a Consent to an
Assignment. Landlord, Tenant and Subtenant acknowledge and agree that no future interaction or
course of dealing developed between Landlord and Subtenant shall be deemed to transform the
Sublease into an Assignment, or be deemed to indicate an intent on the part of Landlord to accept
an Assignment of the Lease Agreement to Subtenant. Landlord’s intent is clearly to accept and
maintain a Sublease throughout the term of the Lease. Tenant and Subtenant waive the right to
assert the existence of an Assignment in any litigation between or among Landlord, Tenant and
Subtenant.

(2) Except as herein set forth, Landlord is bound only to the terms of the Lease Agreement with
Tenant. Any Agreement between Tenant and Subtenant, which contains terms different from or other
than those contained within the Lease agreement, is not binding upon nor accepted by Landlord.

(3) Tenant and Subtenant agree to indemnify Landlord and hold it harmless from damage or claim by
any real estate broker in connection with the Sublease between Tenant and Subtenant, which
indemnification shall include all commission claims, as well as all legal, expert and attorney fees
incurred in defending any claim.

(4) This Consent to Sublease cannot be changed or amended except by a writing signed by Landlord,
Tenant and Subtenant.

DATE: 4/19/07

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DUKE REALTY OHIO,	 	 	 	POCKETSCRIPT, INC., an Ohio corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	an Indiana general partnership	 	 	 	           /s/ Barry Wilson	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Signature
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Duke Realty Limited Partnership,	 	 	 	Barry Wilson, CFO	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Printed Name of Signature and Title
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	a general partner	 	 	 	Date: 4/11/07	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Duke Realty Corporation,	 	 	 	 	 	 
	 	 	 	 	its general partner	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gerald R. Royce
 

Gerald R. Royce
	 	 	 	 	 	 
	 

	 	 	 	 	 	Vice President, Leasing	 	 	 	 	 	 

 

 

	 	 	 	 	 
	 

	 	SUBLESSEE:	 	 
	 
	 	 	 	 
	 

	 	HAVERSTICK CONSULTING, INC,	 	 
	 

	 	an Indiana corporation	 	 
	 
	 	 	 	 
	 

	 	     /s/ Eric Weber
 

Signature
	 	 
	 
	 	 	 	 
	 

	 	Eric Weber, CFO
 

Printed Name of Signature and Title
	 	 
	 
	 	 	 	 
	 

	 	Date: 4/11/07

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]