2009 Sales Vice President Compensation Plan - Peter Bello



 EXHIBIT 10.6 
 2009 SALES VICE PRESIDENT COMPENSATION PLAN 
 Plan Participant 
 Peter Bello, Vice President US Federal and Rest of World Sales 
 Territory – United States Federal, Canada, Latin America, Asia Pacific including India, Japan, China and Southeast Asia 
 Applicability Period January 1, 2009 to December 31, 2009. 
 Target Incentive Pay 
 Your total incentive pay available for the Applicability Period is US$112,500. That incentive amount will be
allocated between commissions and a bonus. Accordingly, we have allocated $75,000 of your total incentive to commissions and $37,500 to bonus. 
 Plan Summary 
 Your Quotas: 
 Your 2009 quota for all products and services is $14,004,000 USD (“Quota”). 
 Bonus 
 The bonus will be paid at the discretion of the CEO based on you meeting strategic objectives such as expense control, building the sales-force and other factors
considered important to the CEO. To qualify for a bonus you must meet a threshold Return on Investment (“ROI”) for your Territory of 40.0% for Q1 and Q2 and 40.0% for Q3 and Q4. The bonus shall be payable after the end of Q2, 2009 and Q4,
2009 respectively based on performance during Applicability Period. The bonus shall be determined at the discretion of the President & CEO and Compensation Committee of the Board of Directors. 







 Qualified Sales and Amounts 
 Subject to this Plan, the following chart outlines the types of applicable product and services that qualify towards your attainment of the quotas: 
  

					
	 Qualified Sale
	  	 Amount Towards
 Commission Payout
	  	 Amount Towards Quota
 Attainment

	Entrust Software License Revenue	  	1.0 X Recognized Revenue	  	1.0 X Recognized Revenue
			
	Entrust Certificate Services (“ECS”)	  	1.0 X Bookings	  	1.0 X Bookings
			
	First year Maintenance (for Entrust Products only)	  	1.0 X Bookings	  	1.0 X Bookings
			
	Non-refundable Year Maintenance prepayments at time of sale (for Entrust Products Only)	  	1.0 X Bookings	  	1.0 X Bookings
			
	Entrust Managed PKI Services (“Managed Services”)	  	0.6 X Bookings	  	1.0 X Bookings
			
	Entrust Tokens	  	0.3 X Recognized Revenue	  	0.3 X Recognized Revenue
			
	Third Party Products and Software, Including ; CoreStreet, CheckPoint, SafeNet, and Appliance Hardware	  	0.15 X Recognized Revenue	  	0.15 X Recognized Revenue
			
	Entrust PS and Entrust Training (collectively “Eligible PS”)	  	0.15 X Recognized Revenue	  	0.15 X Recognized Revenue

  

	 	•	 	 “Bookings” means the amount that a Customer has legally committed to irrevocably purchase and has actually been invoiced by Entrust.



  

	 	•	 	 “Maintenance” means the component of a Qualified Sale corresponding to Entrust’s standard Silver, Gold and Platinum support plans for
Products. If less than one year of Maintenance has been purchased because the customer wishes to make the expiry of the Maintenance co-terminus with an existing plan, then the Bookings will be uplifted to a full year on a pro-rata basis.



  

	 	•	 	 “Recognized Revenue” means revenues recognized by Entrust in 2009 on account of your Qualified Sales concluded in the 2009 calendar year.



  

	 	•	 	 “Managed Services” means the following products sold as part of a Qualified Sale: Entrust Managed Services Setup Fee and Managed Services Annual
Services Fee. 


  

	 	•	 	 “Entrust Token” means the following products sold as part of a Qualified Sale: Entrust IdentityGuard Tokens, Entrust IdentityGuard Grid Cards, and
InCard OTP. 


  

	 	•	 	 “Third Party Products and Software” means the following products sold as part of a Qualified Sale: Entrust Secure Identity Management products
and/or bundles, Siemens products, Critical Path products, Passlogix products, IKey Token products, CheckPoint products (i.e., Entrust Entelligence Disk Security), Veridis, Vericept, and Vordel products , CoreStreet, SafeNet, and Appliance Hardware,
all of which are exclusive of support and maintenance on such products. 









 Commission Rate 
 Subject to this Plan, the Commission Rate will depend on your year-to-date Quota attainment, as follows: 
  

				
	 Quota Attainment
	  	Rate	 
	 0 – 100% of Quota
	  	0.54	%
	 100 – 125% of Quota
	  	0.59	%
	 Over 125% of Quota
	  	0.71	%

 President’s Club 
  

	 	A.	If your Quota Attainment for 2009 is at least equal to your Quota, then you will be entitled to a one time “President’s Award” sales bonus of $10,000;


  

	 	B.	If your Quota Attainment for 2009 is at least equal to 125% of your Quota, then you will be entitled to an additional “President’s Award” sales bonus of $5,000 (i.e.,
for a total of $15,000) 

 ADDITIONAL TERMS 
  

	 	1.	This Plan applies only to sales in 2009. You are only eligible to receive the commissions and bonuses set out in this Plan for qualified sales if: 

 (a) the revenue payable to Entrust in relation to a qualified sale is timely collected (i) while you are Actively Employed by Entrust, or
(ii) within sixty days from the date that you cease to be Actively Employed by Entrust provided that the qualified sale was invoiced while you were Actively Employed; 
 In this context, You are "Actively Employed" if you have not given notice to Entrust of your resignation or intent to resign, and you have not received from Entrust written notice of termination of your employment
(regardless of the sufficiency of any such notice of termination). You cease to be Actively Employed by Entrust as of the date (i) that Entrust receives notice of resignation or intent to resign, or (ii) that Entrust provides written
notice to You of Your termination (regardless of the sufficiency of any such Notice of Termination). 
  

	 	2.	Commissions will normally be paid on the next scheduled pay date which falls after 45 days following the end of quarter in which payment was received (or in the case of Amounts
based on Recognized Revenue, received and recognized). For purposes herein, commissions are considered earned when payment is received (or in the case of Amounts based on Recognized Revenue, received and recognized). There may also be a second
scheduled pay date within the applicable quarter. Please contact sales operations for these planned dates. 

  

	 	3.	You need to report any potential error within 90 days of receipt of the relevant statement or payment, whichever is later, failing which the commissions will be deemed to be
properly paid and the Company will not be required to make any adjustment. 









	 	4.	In spite of paragraph 2 above, the Company may, in its sole discretion, pay commissions and bonuses in advance in expectation of collection and/or recognition, as applicable. If it
turns out that payment is not made within a timely manner by a customer, then the Company is entitled to set off such commissions and bonuses against future commissions or other payments due to you, or alternatively (at the Company’s option)
demand repayment by you. Entrust’s current policy with respect to advanced payment in expectation of collection and/or recognition or commissionable revenue, set off, and demand for repayment is set out at paragraph 13 below.


  

	 	5.	This plan has been approved of by the compensation committee of the Board of Directors of Entrust, Inc. The Sales Compensation Committee (SCC) is a committee of the management of
the company comprised of the CFO and the CGO. The purpose of the committee is to ensure consistent application of this Plan and resolve issues, ambiguities, address exceptional conditions that arise. The SCC or its delegate in Sales Operations shall
be responsible for the implementation and ongoing administration of this Plan. Any questions arising from the administration or interpretation of this Plan are subject to the determination of the SCC. The CFO will interpret what constitutes revenue
recognition, what constitutes standard sales practices, how a sale is attributed to any territory, and what constitutes Recognized Revenue. You expressly acknowledge that the SCC may refuse to include in commission calculations for any revenue
recognized for the sale that does not conform to the Company’s standard sales practice. For example, the SCC may not pay commissions on transactions with non-standard pricing or non-standard terms and conditions. In order to help You with
interpretation of this Plan, the SCC may from time to time issue short interpretation bulletins. 

  

	 	6.	The SCC may amend or discontinue this Plan at any time with respect to future commissions, incentives or awards with notice to You; however, any incentives or awards earned up to
the date of modification or termination will be distributed in accordance with the Plan provisions at the time they were earned. Amendment to this Plan must be in a document approved of by the SCC and signed by the Company’s CFO, CEO, or CGO.


  

	 	7.	Nothing in the Plan shall be interpreted as giving you the right to be retained as an employee of the Company, or of limiting Entrust Limited’s rights to control or terminate
your employment at any time in the course of its business. 

  

	 	8.	The terms of this Plan will be governed by the laws of the Province of Ontario. If any provision of this Plan is held by a court of competent jurisdiction to be illegal, invalid or
unenforceable, the remaining provisions shall remain in full force and effect. 









	 	9.	In accepting this Plan, You agree to be bound by this Plan. You agree that sales plans are common practice in the software industry and it is common practice to modify sales plans
from time to time. Finally, you acknowledge that you have had an opportunity to review this Plan with a lawyer. 

  

	 	10.	All references to currency in this Plan are in US dollars. Commission payment will be paid at a fixed conversion rate for each local payroll currency. The Company will set the
conversion rate in its sole discretion. 

  

	 	11.	To become eligible for compensation under this Plan, you must deliver your acceptance to Sales Operations in the manner directed by Sales Operations. 

  

	 	12.	For individual transactions that exceed USD $2,000,000, commission on the first $2,000,000 of revenue recognized from the transaction will be paid according to the usual SCP
provisions. Payment on transaction revenue over $2,000,000 is subject to review by the SCC and the amount and timing of the commission to be paid will be at the sole discretion of the SCC. This term is not intended as a cap on desired transaction
size or sales earnings; but rather, a safeguard to ensure that unforeseen circumstances do not negatively affect the company. 

  

	 	13.	The following sets out Entrust’s policy respect to advanced payment in expectation of collection and/or recognition of revenues while you are Actively Employed:


 a. For each Qualified Sale where: 
 i. Products, Third Party Products, or Eligible PS are sold and have created Recognized Revenue, or where Maintenance or Entrust Certificate Services or Managed Services are sold and have created Bookings; and

 ii. such Recognized Revenue or Bookings have not yet been collected; 
 Entrust will prepay the commissions that you would be entitled to had the Amount been collected, but only to the extent that such cumulative Amount is
less than or equal to $200,000 for such Qualified Sale. For example, if such cumulative Amount arising from a sale is $300,000 you would receive a prepayment of commissions on account of the $200,000 portion of such sale, subject to the terms of
this Plan. 
 b. For any commission prepayment paid in connection with a receivable that is not paid within 70 days from the date of invoice
(exclusive of commissions attributable to Eligible PS), Entrust will set off such prepayment against future commissions and prepayments until such amount is fully received. 








	 	14.	In spite of anything to the contrary in this Plan, if at the time that you cease to be Actively Employed by Entrust Limited, commissions have been paid or prepaid to you and the
corresponding revenue has not been collected (as per 1(a) above) by the Company, then such commissions and/or sales bonuses shall be deemed to have been overpaid ("Commission Overpayments"). Any payments that may be due to you, including, but
not limited to, commissions, recoverable draws, salaries, bonuses, termination payments, severance payments, payments in lieu of notice, and/or expense reimbursements, may be withheld and set off against Commission Overpayments. Any Commission
Overpayments remaining after any such set offs shall be due and payable by you to the Company as of the date that you ceased to be Actively Employed by Entrust Limited. However, the Company may withhold any commissions and/or bonus that may be due
upon You ceasing to be Actively Employed by Entrust Limited for up to one hundred and twenty (120) days after such cessation date to allow the Company to make any necessary adjustments to your commissions due to changes in any previously
recognized sale or license that may occur after you ceased to be Actively Employed by Entrust Limited. The Company may further withhold commissions until you have submitted to the Company a summary of all business expenses for which you are seeking
reimbursement, and proof that all outstanding charges on any corporate credit cards have been paid. The Company may also deduct from any commissions that may be owing to you any charges for expenses that have been charged against corporate credit
cards and that have not been paid by You.