Document:

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                                                                    Exhibit 10.1
                                                               Execution Version

                THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

      THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") is made
and entered into effective as of June 1, 2004, by and between Zix Corporation, a
Texas corporation (the "Company"), and Daniel S. Nutkis ("Employee"), and amends
and restates that certain Employment Agreement, dated December 1, 2003.

                                    RECITALS

      A.    The Company desires to provide for the continuing employment by
            Employee with the Company.

      B.    Employee is willing to continue to serve the Company on the terms
            and conditions provided in this Agreement.

      C.    The Company and the Employee are parties to that certain Severance
            Agreement, dated as of July 1, 2003, between the Company and the
            Employee (the "Severance Agreement"), which is intended to be
            cancelled following the execution of this Agreement.

      THEREFORE, in consideration of the covenants and agreements contained in
this Agreement and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties to this Agreement
agree as follows:

      1.    Employment. The Company shall employ Employee, and Employee accepts
such employment, on the terms and conditions set forth in this Agreement.

      2.    Term. Subject to Section 8 and the other terms and conditions in
this Agreement, the employment of Employee by the Company as provided in Section
1 will be as follows: Employee's employment with the Company shall be on a "full
time" basis for the period beginning June 1, 2004, and ending the later of (i)
November 30, 2004, or (ii) such later date as the parties may mutually agree.
This period of employment is referred to as the period of "full time"
employment. Following this period of full time employment, Employee shall be a
part time employee of the Company for a period of an additional six months. This
period of employment is referred to as the period of "retainer employment."
Following the period of retainer employment, the Employee shall be a consultant
to the Company for an additional two months. This period is referred to as the
"consulting period." Following the execution of this Agreement, Company shall no
longer consider Employee to be a "16-b" officer of the Company, although the
Employee is to be mindful of the continued applicability of certain provisions
of Section 16(b) of the Securities Exchange Act of 1934 and applicable
securities laws relating to insider trading.

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT - Page 1

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      3.    Position and Duties. During the "full time" employment period of
this Agreement, Employee shall serve as Executive Vice President Strategy of the
Company and shall report to the Company's Chief Executive Officer. The duties of
the Employee during the full time employment period shall be to (i) evaluate the
overall marketplace and advise the Company's Chief Executive Officer on
appropriate strategic direction for the Company; (ii) evaluate the Company's key
strategic relationships and advise as to recommended courses of action with
respect to these relationships; (iii) advise as to recommended courses of action
with respect to potential acquisition or business combination candidates; (iv)
provide leadership in the area of regulation and standards; (v) assist the
Company's Chief Medical Officer in establishing the Company's Medical Advisory
Board; and (vi) perform such other tasks as may be reasonably assigned by the
Company's Chief Executive Officer. During the retainer employment period,
Employee shall perform such tasks as may be reasonably assigned by the Company's
Chief Executive Officer for up to 4 days per calendar month and additional work
as mutually agreed. During the "full time" and "retainer employment" periods,
Employee shall not be assigned any duties that will necessitate a change in the
location of his home (presently in the Dallas, Texas area). Employee shall
devote substantially all his working time and efforts to the business and
affairs of the Company during the full time period of this Agreement;
thereafter, Employee shall devote an amount of working time and efforts as is
commensurate with the duties being undertaken by Employee. Notwithstanding the
foregoing, the Company acknowledges that Employee may provide consulting
services to other persons and entities during the term of this Agreement
provided that such consulting services (1) do not interfere with Employee's
duties to the Company pursuant to this Section 3, and (ii) do not violate the
provisions of Section 10 hereof. During the consulting period, Employee shall be
available for telephone consultation and discrete projects as mutually agreed by
the parties. Employee shall be deemed to be an employee until the expiration of
the consulting period for purposes of the Employee's existing stock option
agreements; for purposes of Section 10, Employee shall be deemed to be an
employee through the duration of the full time period and the retainer period.

      4.    Compensation.

      Full-Time Period. During the full time period of employment, Company shall
pay Employee a monthly salary of $27,083, payable semi-monthly.

      Retainer Period. During the retainer period of employment, the Company
shall pay Employee a monthly payment equal to the sum of (i) $18,750 per month
plus (ii) $2,500 per day of services rendered during the month to Company (with
the understanding that each of the Company and Employee commits to a minimum of
four days of service per month during the retainer period of employment
resulting in a minimum retainer fee of $10,000 per month). The amounts payable
to Employee during the retainer period of employment are payable in cash or the
Company's common stock, in the Company's discretion. If paid in stock, in
accordance with current Company policy, Employee shall have one (1) business day
(or other mutually agreed period) after receipt of such stock to liquidate all
or any portion of such stock as Employee

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determines in his sole discretion and if, at the time of the final retainer
period payment to Employee, the cumulative sale prices realized by Employee are
less than the price used to value the stock paid to Employee, then the Company
shall pay Employee such difference in cash or the Company's common stock, in the
Company's discretion. To the extent Employee chooses not to sell the stock
during the one (1) business day (or other mutually agreed period), then Employee
shall not be entitled to any "make whole" payment, even if Employee subsequently
sells the stock at a price(s) that is lower than the price used to value the
stock.

      Consulting Period. During the consulting period, the Company shall pay
Employee at the rate of $2,500 per day of service (pro-rated as appropriate to
account for partial days of service).

      Stock Options. As additional compensation, the Company shall grant to
Employee an option to purchase 164,000 shares of the common stock of the
Company, at an exercise price of $8.50 per share, with vesting to occur pro-rata
and monthly over a twelve month period commencing June 15, 2004, and on the 15th
day of each month thereafter.

      Nashville Home Loss Allowance Reimbursement. Company has paid to Employee
a home loss reimbursement allowance as set forth in the Company's employment
offer letter dated June 19, 2003. Employee shall be entitled to retain this
allowance except that if (a) Employee resigns employment from the Company for
any reason other than the Company does not pay the amounts it is required to pay
to Employee hereunder or (b) the Company terminates Employee's employment for
"Cause" (as defined under the Severance Agreement), then Employee shall within
20 days of the effective date of the employment termination pay to the Company
in cash $25,000 of the home loss reimbursement allowance if the effective date
of the employment separation is before July 31, 2004.

      5.    Expenses and Services. During the term of Employee's employment
under this Agreement, Employee shall be entitled to receive prompt reimbursement
for all reasonable expenses incurred by Employee by reason of his employment,
provided that such expenses are incurred and accounted for in accordance with
reasonable policies and procedures established by the Company and in effect when
the expenses are incurred. The Company shall furnish Employee with office space,
secretarial assistance, office supplies, office equipment, and such other
facilities and services as are suitable to Employee's position and adequate for
the performance of his duties.

      6.    Confidential Information. Employee recognizes and acknowledges that
Employee will have continue to have access to confidential information of the
Company and its affiliated companies, including, without limitation, customer
information, lists of suppliers and costs, information concerning the business
and operations of the Company and its affiliated companies, and proprietary
data, information, concepts and ideas (whether or not patentable or
copyrightable) relating to the business of the Company and its affiliated
companies, as applicable. Employee agrees not to disclose such confidential
information, except as may be necessary in the performance of Employee's duties
hereunder, to any person, nor use such confidential information in any way,
unless Employee has received the written consent of the Company or unless such
confidential information becomes public knowledge through no

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wrongful act of Employee. Upon expiration of the consulting period (or earlier
if requested by Company), Employee shall promptly deliver to the Company all
drawings, manuals, letters, notebooks, customer lists, documents, records,
equipment, files, computer disks or tapes, reports or any other materials
relating to the business of the Company and its affiliated companies, and all
copies, that are in Employee's possession or under Employee's control.
"Confidential information" shall not include information that constitutes
general skills, knowledge, and experience acquired by Employee before and/or
during his employment with the Company. All intellectual property that is
created, conceived, developed, and the like by Employee during the term of the
full time employment period, retainer employment period, and consulting period
in connection with services rendered to the Company by Employee shall be owned
by the Company. Employee will render to the Company such assistance as may be
reasonably necessary to evidence and protect the ownership of its intellectual
property. If such assistance is required after Employee's separation from
employment with the Company, reasonable compensation will be paid to Employee
for such assistance.

      7.    Rights under Certain Plans. During the full time employment period,
Employee will be entitled to participate in the insurance and employee benefit
plans and programs maintained by the Company and its affiliated companies
applicable to similarly situated employees on the same basis as such other
employees of the Company or its affiliated companies, as applicable, subject
only to the possible substitution by or on behalf of the Company or its
affiliated companies of other plans or programs providing substantially similar
or increased benefits for Employee. Employee will also be entitled to reasonable
vacation time, with no reduction in compensation, in keeping with Employee's
duties and responsibilities to the Company. Following the expiration or
termination of the full time employment period, Employee shall be eligible to
elect COBRA continuation benefits under the applicable benefit plans. Company
shall pay Employee's COBRA premiums during the retainer period to the extent
Employee elects to exercise his COBRA rights during such period. If required by
applicable law, Company shall include the amount of the premiums paid on behalf
of Employee in Employee's W-2 or 1099, as applicable.

      8.    Early Termination. Employee may terminate Employee's employment
under this Agreement only if the Company does not pay the amounts it is required
to pay to Employee hereunder or issue the stock required hereunder or under any
of the applicable stock option agreements, provided that Employee's termination
shall not release the Company from its obligations to pay all such amounts and
issue such stock. Company may terminate Employee's employment under this
Agreement only with Cause, as defined in the Severance Agreement.

      9.    Effects of Termination. If the Company terminates Employee's
employment for any reason other than as permitted in Section 8 or if Employee
terminates his employment because the Company does not pay the amounts it is
required to pay to Employee hereunder, then Employee shall be entitled to
receive the amounts and vesting rights that he would have been entitled to
receive through the duration of the full time employment and retainer and
consulting periods.

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      10.   Non-competition. Employee agrees and covenants that Employee will
not, during the term of his employment under this Agreement and the 12 month
period following the time Employee is no longer an employee for purposes of this
Agreement (as previously stated in the last sentence of Section 3):

            (A)   compete, directly or indirectly, with the Company's secure
      messaging business or care delivery services business (including the
      Company's e-prescription business) as they exist at the end of retainer
      employment period. The Company shall inform Employee in writing of changes
      in Company's business during the full time and retainer employment periods
      so that Employee may comply with this Section 10. If Employee has
      theretofore been conducting activities that were not in violation of this
      non-competition provision but became a violation of this non-competition
      provision because of changes in the Company's business, then Employee
      shall have thirty (30) days after receipt of such notice to terminate any
      activities that would be violation of this Section 10. For purposes of
      this Agreement, "Competition" shall include, without limitation, engaging
      in any business, whether as proprietor, partner, joint venture, employee,
      agent, officer, or holder of more than five percent (5%) of any class of
      equity ownership of a business enterprise, that is competitive with the
      Company's secure messaging business or care delivery services business
      (including the Company's e-prescription business).

            (B)   solicit to do, or do, competing business with any then-current
      customer of the Company's secure messaging business or care delivery
      services business (including the Company's e-prescription business) or any
      person that has been a customer within the six months preceding the date
      of Employee's separation from employment with the Company.

            (C)   solicit to hire, or hire, any then-current employee of the
      Company (including its affiliated companies), except by way of general
      advertising.

      Although the Company and Employee have, in good faith, used their best
efforts to make the non-competition covenants 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
non-competition covenant 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 non-competition covenant in order to make
it reasonable in all pertinent respects, damages, if any, for a breach of the
non-competition covenant, as so reformed, will 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 which accrued within the scope of the
non-competition covenant as so reformed.

      The provisions of this Section 10 shall be the only non-competition
covenants applicable to Employee and all other such covenants, including,
without limitation, any non-competition covenants of any stock option agreements
between the Company and Employee, are no longer applicable.

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      11.   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.

      12.   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.

      13.   Remedies. Employee hereby agrees that a violation of the provisions
of Section 6 or 10 hereof would cause irreparable injury to the Company for
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.

      14.   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 2850, LB 36
                             Dallas, Texas 75204-2911, Attn: General Counsel

                             Employee:

                             Daniel S. Nutkis
                             5252 Longvue Drive
                             Frisco, Texas 75034

      15.   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. The $18,750 per month payments payable during the retainer
employment period are in lieu of payments payable under the Severance Agreement.
Accordingly, the Severance Agreement is hereby terminated. Employee acknowledges
that other than the Company's obligation to make the payments as provided for
herein, he shall not be entitled to any other compensation payments, or
severance payments, or payments in lieu of notice in connection with his
employment with, or separation from employment with, the Company.

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      16.   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.

      17.   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.

      18.   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.

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

      20.   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.

      21.   Arbitration. The Company and the Employee agree to the resolution by
binding arbitration of all claims, demands, causes of action, disputes,
controversies, or other matters in question ("Claims") arising out of this
Agreement or the Employee's employment (or its termination), whether sounding in
contract, tort, or otherwise and whether provided by statute or common law, that
the Company or its affiliated companies may have against the Employee or that
the Employee may have against the Company or any and its affiliated companies,
or any benefit plans of the Company or any of its affiliated companies, or any
fiduciaries, administrators, and affiliates of any of such benefit plans, or
their respective officers, directors, employees, or agents in their capacity as
such. This agreement to arbitrate shall not limit the Company's or the
Employee's right to seek equitable relief, including, but not limited to,
injunctive relief and specific performance in a court of competent jurisdiction.
Claims covered by this agreement to arbitrate include, but are not limited to,
claims by the Employee for breach of this Agreement, wrongful termination,
discrimination (based on age, race, sex, disability, national origin, or other
factor), and retaliation. The only Claims otherwise within the definition of
Claims that are not covered by this Section 21 are: (1) 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 Section 21; (2)
any Claim by the Employee for workers' compensation benefits or unemployment
compensation benefits; or (3) any Claim by the Employee for benefits under a
Company or affiliated company pension or benefit plan that provides its own
non-judicial dispute resolution procedure.

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      Claims shall be submitted to arbitration and finally settled under the
Employment Dispute Resolution Rules of the American Arbitration Association
("AAA") in effect at the time the written notice of the Claim is received. An
arbitrator shall be selected in the manner provided for in the Employment
Dispute Resolution Rules of the AAA, except that the parties agree that the
arbitrator shall be an attorney licensed in the state where the arbitration is
being conducted. If any party refuses to honor its obligations under this
agreement to arbitrate, the other party may compel arbitration in either federal
or state court. The arbitrator will have exclusive authority to resolve any
dispute relating to the interpretation, applicability, enforceability, or
formation of this agreement to arbitrate, including, but not limited to, any
claim that all or part of this Agreement is void or voidable and any claim that
an issue is not subject to arbitration. The arbitration will be held in Dallas
County, Texas. The arbitrator shall issue a written decision that identifies the
factual findings and principles of law upon which any award is based. The award
and findings of such arbitrator shall be conclusive and binding upon the
parties. Any and all of the arbitrator's orders, decisions, and awards may be
enforceable in, and judgment upon any award rendered by the arbitrator may be
confirmed and entered by, any federal or state court having jurisdiction. The
Company shall pay all costs and expenses of its advisors and expert witnesses,
and Employee shall pay all costs and expenses of his advisors and expert
witnesses. The costs and expenses of the arbitration proceedings will be paid by
the non-prevailing party or as the arbitrator otherwise determines. Discovery
will be permitted to the extent directed by the arbitrator. EMPLOYEE UNDERSTANDS
THAT BY AGREEING TO SUBMIT CLAIMS TO ARBITRATION, HE GIVES UP THE RIGHT TO SEEK
A TRIAL BY COURT OR JURY AND THE RIGHT TO APPEAL A COURT OR JURY DECISION AND
FORGOES ANY AND ALL RELATED RIGHTS HE MAY OTHERWISE HAVE UNDER FEDERAL AND STATE
LAWS.

      22.   Authority. The Company represents and warrants to Employee that the
execution, delivery and performance by the Company of this Agreement has been
duly authorized by the Company and constitutes the legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms.

                                   Signatures

      To evidence the binding effect of the covenants and agreements described
above, the parties to this Agreement have executed this Agreement on the dates
set forth below, to be effective as of the date first above written.

                                   THE COMPANY:

                                   ZIX CORPORATION

                                   /s/ John A. Ryan
                                   ---------------------------------
                                   John A. Ryan
                                   President and Chief Executive Officer

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                                   Date: 6-24-04

                                   EMPLOYEE:

                                   /s/ Daniel S. Nutkis
                                   ---------------------------------
                                   Daniel S. Nutkis

                                   Date: 6/14/04

                                       9<PAGE>
                                                                    Exhibit 10.2

                                 ZIX CORPORATION
                             STOCK OPTION AGREEMENT

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

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

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

1.    DEFINITIONS.

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

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

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

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

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3.    EXERCISE OF OPTION.

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

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

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

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

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

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

4.    TERMINATION OF OPTION.

      In the event an Optionee ceases to be an employee of either the Company or
a Subsidiary of the Company due to death, Retirement, Resignation, Disability or
termination by the Company for any reason other than "cause" (such five events
each being a "Qualified Termination"), this Option may be exercised by the
Optionee or his or her estate, personal representative or beneficiary to the
fullest extent that the Optionee was entitled to exercise the same on the day
immediately prior to such termination (i) at any time within the one-year period
commencing on the day next following such termination if such termination is due
to the death of the Optionee; (ii) at any time within the thirty-day period
commencing on the day next following the effective date of such termination if
such termination is due to the Resignation of the Optionee; or (iii) at any time
within the six-month period commencing on the day next following such
termination in the case of any other Qualified Termination (or in any such case
in (i), (ii) or (iii) above, if shorter, only for the remaining stated term of
this Option). In the event that the Optionee's employment is terminated for any
reason other than a Qualified Termination, this Option shall automatically
expire simultaneously with such termination. For purposes of this Paragraph,
"cause" shall have the meaning given such term in the Severance Agreement, dated
July 1, 2003, between Optionee and the Company. For purposes of this Agreement,
Optionee shall be considered to be an employee of the Company until the
expiration of the "consulting period," as such term is defined in Section 8 of
the Employment Agreement, dated June 1, 2004, between the Company and Optionee.

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

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

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

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

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

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

                                       4
<PAGE>

10.   NON-COMPETITION COVENANTS.

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

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

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

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

      e.    The Company and Optionee have in good faith used their best efforts
to make each non-competition covenant contained in the preceding provisions of
this Paragraph 10 reasonable in both scope and in duration. It is not
anticipated, nor is it intended, by either party

                                       5
<PAGE>

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 made to the Plan subsequent to the
date hereof that impairs the Optionee's rights under this Option without the
Optionee's written consent.

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

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

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

                                       6
<PAGE>

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 2300, LB 36, Dallas,
Texas 75204-2960: Attention: Treasurer, or any other address that may be given
by either party to the other party by notice pursuant to this Paragraph. Any
notice other than any Exercise Notice, if sent by registered or certified mail,
shall be deemed to have been given when received.

                                   ZIX CORPORATION

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

                                       7
<PAGE>

                                                                  [ZIXCORP LOGO]

                                 Signature Page
                                       To
                     Zix Corporation Stock Option Agreement

Effective Date of Grant:  JUNE 1, 2004

Name of Optionee:         NUTKIS, DAN

No. of Shares:            164,000

Exercise Price:           $8.50

Name of Plan:             ZIX CORPORATION 2004 STOCK OPTION PLAN

Expiration Date:           MAY 31, 2009

Vesting Schedule:

<TABLE>
<CAPTION>
                                     Date Upon Which Right
Number of Shares                      To Purchase Accrues
----------------                      -------------------
<S>                                  <C>
 13,666                              15-JUN-04
 13,666                              15-JUL-04
 13,666                              15-AUG-04
 13,666                              15-SEP-04
 13,667                              15-OCT-04
 13,667                              15-NOV-04
 13,667                              15-DEC-04
 13,667                              15-JAN-05
 13,667                              15-FEB-05
 13,667                              15-MAR-05
 13,667                              15-APR-05
 13,667                              15-MAY-05
</TABLE>

/s/ Dan Nutkis                          Date: 7/30/04
-----------------------------
Optionee Signature

Sign and return to:
ZixCorporation, 2711 N. Haskell Avenue, Suite 2300, Dallas, Texas 75204-2960
Attn: Human Resources Department

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