Document:

<PAGE>

Exhibit 10.11

                             Employment Agreement

  THIS AGREEMENT is made as of December 1, 2000, by and between APPROVED
FINANCIAL CORP. ("Employer" or "Company") and its successors and assigns, and
Allen D. Wykle, ("Employee"), who, in consideration of the mutual promises of
the parties and other good and valuable consideration, the receipt and adequacy
of which are acknowledged, the parties have agreed as follows:

     53.  Definitions. Whenever the following words or phrases are used in the
          -----------
Agreement, they shall have the meanings given in this Section, unless otherwise
indicated.

          (o) "Affiliate" means any Person owned by (greater than 10%), owning
(greater than 10%), under common ownership with, controlling, controlled by, or
under common control with, another Person, which includes a subsidiary and
parent organizations.

          (p) "Compete" shall mean in any way being in contest with or rivalry
with Employer, including directly or indirectly working with, being employed by,
or having any interest or involvement in any other Person which is involved in
selling, marketing or otherwise providing any of the services or products which
are provided or performed as part of the Primary Business Operation of Employer
during Employee's employment with Employer.

          (q) "Customer" shall mean individual borrowers, mortgage brokers or
other sources of business or referrals of business to Employer.

          (r) "Loans" means all residential real property loans, regardless of
lien position or classification as conforming or non-conforming. "Non-
conforming" Loans, means loans that do not conform to all applicable Federal
National Mortgage Association guidelines.

          (s) "Primary Business Operation" shall mean the origination of loans,
by any method and from any source, and the sale of Loans.

          (t) "Person" shall include both natural persons and entities.

          (u) "Territory" shall mean the area encompassed in a 35-mile radius
around any office of Employer or its Affiliates, which are in the same Primary
Business Operation.

     54.  Employment. Employer employees Employee for the position of Chief
          ----------
Executive Officer and President performing duties as indicated on Schedule A.
Employee agrees to comply with the general supervision and all current and
future policies of Employer.

     55.  Duties. Employee shall perform the duties customarily performed by one
          ------
holding Employee's position in similar businesses, and such duties as may be
assigned by this Agreement as specified in Schedule A attached to and
incorporated herein, and such other duties as may be assigned from time to time
by Employer. Employee shall make available to Employer all information of which
Employee shall have any
<PAGE>

knowledge, and shall make all suggestions and recommendations that will be of
benefit to Employer.

     4.  Best Efforts of Employee. Employee will at all times faithfully,
         ------------------------
industriously, and to the best of the Employee's ability, perform all of
Employee's duties.

     5.  Term and Renewal. The initial term of this agreement shall be from
         ----------------
December 1, 200through December 31, 2001. After December 31, 2001, this
Agreement will be renewable on a year to year basis. Either party must give one
hundred and eighty (180) days written notice if this Agreement is not going to
be renewed after December 31, 2001. Upon failure to give such notice, this
Agreement will automatically renew for an additional year on the same terms.
This notice requirement shall continue for all subsequent renewal periods. In
the event of a Change of Control (i.e. (i) a reduction in the percentage of
Employer common stock owned and controlled by Allen D. Wykle of 50% or greater,
or (ii) the cessation of Allen D. Wykle's full time employment with Employer as
Chairman of the Board, President or Chief Executive Officer) and during the
calendar year in which the Change of Control occurred Employee is notified of
nonrenewal of this Employment Agreement 180 or more days before the end of the
then current calendar year term then that term shall be extended for six (6)
months i.e. until June 30 of the following calendar year, thereby allowing
Employee at least one full year of remaining employment. If the notice of
nonrenewal is given with less than 180 days remaining before the end of the then
current calendar year term the then current term will not be extended because
the then current term will automatically renew for another year (due to failure
to give 180 days notice) thereby assuring Employee of at least one full year of
continued employment.

     6.  Compensation. Employer shall pay Employee in full payment for
         ------------
Employee's services, compensation in accordance with the Compensation Schedule
attached to this Agreement as Schedule B and incorporated as part of this
Agreement, which shall remain in effect until supplemented or replaced by a new
Agreement between Employer and Employee.

     7.  Other Activities. Employee shall devote all business time, attention,
         ----------------
knowledge, and skills solely to the business and interest of Employer, and
Employer shall be entitled to all of the benefits, profits or other issues
arising from or incident to all work, services, and advice of Employee. Employee
shall not, during the term of this Agreement, be employed by or contract to
provide services to any other person or engage in any other business or trade,
nor shall Employee use or take for Employee's personal benefit any position
which conflicts with or is contrary to any position which would be beneficial to
Employer. Nothing in this Agreement, however, shall limit Employee's right to
invest in publicly traded securities, to engage in any business with the written
consent of Employer, or to engage in civic and charitable activities.

     8.  Benefits. Employee shall be entitled to benefits according to
         --------
Employer's stated policy, as amended from time to time. Employee's tenure with
the Company, for the purpose of entitlement to current and future benefits
according to Employer's stated policy, shall begin on the date the Employee was
initially recommended for the Company's Board of Directors, which was in April
1992.
<PAGE>

     9. Termination. Employer may terminate this Agreement at any time without
        -----------
advance notice for cause. For the purpose of this Agreement "cause" is defined
as: (i) a breach of this Agreement or; (ii) any act or omission by Employee
which involves moral turpitude, gross negligence, dishonesty, bad faith or
fraud. Furthermore, this Agreement shall terminate immediately upon Employee's
death or permanent disability (preventing Employee from performing his
responsibilities), but such termination shall not affect any previously vested
right of Employee to receive disability payments in accordance with any
applicable plan for a disability, which arises while this Agreement is in
effect. To the extent that any act or omission in the preceding clauses are
capable of being remedied or cured (which determination will be made by Employer
at its sole discretion), then a violation will not be grounds for immediate
termination unless Employer first provides notice to Employee which includes (a)
the act or failure to act of Employee giving rise to the proposed termination,
(b) the corrective action which Employer reasonably believes would cure the
violation, and (c) twenty (20) days from receipt of the notice to take such
corrective action.

     10. Confidential and Proprietary Information. In the course of this
         ----------------------------------------
employment, Employee will be exposed to certain confidential and proprietary
information of Employer and its Customers. Employee shall not reproduce or
remove from any premises any such information without the express written
consent of Employer. Any such information acquired by Employee shall be promptly
delivered to Employer if in tangible form, unless specific written consent is
received from Employer. Employee shall not at any time or in any manner,
disclose to any Person, nor in any way use to his benefit or that of any other
person, any information concerning any matters affecting or relating to the
business of Employer, including any of its Customers, the prices it obtains or
at which it offers its products or services, or the sources of and/or prices it
pays for any supplies, material, services or technical assistance, or any other
information concerning the finances or business of Employer or any of its
Customers, without regard to whether any of the foregoing matters would
otherwise be considered confidential or trade secrets, the parties agreeing that
these matters are important, material and confidential and gravely affect the
successful conduct of Employer's business and goodwill, and that any breach of
the terms of this Section shall be a material breach of this Agreement and
result in irreparable harm to Employer. Employee further agrees that upon
termination or expiration of this Agreement for any reason, Employee shall
immediately deliver to Employer any and all information, documents, agreements,
data, work product, customer lists, notes, and the like of Employer or relating
to Employer's business. The duties and restrictions on Employee in this Section
shall survive the expiration or termination of this Agreement and remain in full
force and effect for so long as Employer continues in business.

     11. Covenant Not to Compete. In consideration of the employment of Employee
         -----------------------
or in the event Employee is entering into this Agreement after having been an
employee, either with a prior contract or no contract, then in consideration of
continued employment, the benefits of this Agreement and other good and valuable
consideration, the Employee independently covenants and agrees with Employer,
each of which said covenants shall be independent of and severable from each
other and each of which shall continue in force for the specified duration
irrespective of the completion and performance of all other obligations between
the parties hereto, that:
<PAGE>

          (u)  Employee will NOT, during the term of Employee's employment, nor
one (1) year immediately following the termination of employment, compete with
Employer within the geographical limits of the Territory.

          (v)  Employee will NOT, during the term of Employee's employment, nor
for one (1) year immediately following termination of employment, compete with
employer within a 35-mile radius of any office, which Employee worked at or
supervised during his employment with Employer.

          (w)  Employee will NOT, during the term of Employee's employment, nor
for two (2) year immediately following termination of employment, directly or
indirectly, for Employee or in conjunction with any other Person, (by
disparagement of Employer's business or otherwise), do business with, divert,
take away or cause to leave any of the Customers of Employer.

          (x)  Employee will NOT, during the term of Employee's employment, nor
two (2) years immediately following the termination thereof, directly or
indirectly, for Employee, or in conjunction with any other Person (by
disparagement of Employer's business or otherwise), employ, solicit, divert or
take away any of the employees of Employer.

          (y)  If any of the preceding limitations on the Employee imposed by
the preceding subsection "(a)" through "(d)" exceed the maximum limitation
permissible under the statutes, laws or precedents of any state wherein it is
sought to be enforced against the Employee, then the parties hereto agree that
such limitation may and shall be deemed to be amended to conform to the maximum
limitation permissible under such statutes, laws or precedents, or in the
absence thereof, to such limitations deemed appropriate by any court of record
in the state wherein it is sought to be enforced.

          (z)  The Employee acknowledges that a violation on Employee's part of
any of the covenants of this Section and its Subsections or Section 10 or 12
will cause such damage to the Employer as will be irreparable and the exact
amount of which will be impossible to ascertain, and for that reason, the
Employee further acknowledges that the Employer shall be entitled, as a matter
of course, to an injunction out of any Court of competent jurisdiction,
restraining any further violation of the covenant by the Employee, and, pending
the hearing and decision on the application for such injunction, the Employer
shall be entitled to a Temporary Restraining Order, and waives any request for a
bond, or the equivalent thereof, without prejudice to any other remedies
available to it. The Employee particularly agrees to the immediate issuance of
such Temporary Restraining Order and hereby waives and requirements of notice or
objection whatsoever to the issuance of such an Order.

          (aa) It is mutually agreed that regardless of whether the Employee
leaves the employ of the Employer by Employee's own request or the request of
the Employer, or regardless of how or by what manner the employment relationship
is terminated (including whether with or without cause), or this contract is
terminated or expires, the independent covenants herein contained in this
Section and in Sections 10 and 12 shall survive and remain in full force and
effect as INDEPENDENT COVENANTS. Should any provision or covenant in this
Agreement be breached by Employer, or be declared void or unenforceable by a
court of competent jurisdiction, the remaining covenants and provisions
including those in this Section 11 and Sections 10
<PAGE>

and 12 shall nevertheless remain in full force and effect, each being
independent and severable.

          (bb) During the term of the noncompetition covenant, Employee shall
give all of Employee's actual and prospective employers written notice of the
requirements of the noncompetition covenant. If Employer believes that Employee
has failed to provide any actual or prospective employer such notice, Employer
may provide such notice, including providing a copy of any or all of this
Agreement.

          (cc) Employee acknowledges that (i) there was no duress involved in
signing this Agreement; (ii) other employment options were available to Employee
at the time of signing this Agreement; (iii) Employee's covenant not to compete
was a material and necessary inducement to Employer to employ or continue the
employment of Employee; (iv) Employee understands the policy of reasonableness
regarding restrictive covenants and agrees that the restrictions imposed upon
Employee by this Agreement are reasonable in scope and duration and are
necessary to serve a legitimate business interest of Employer; and (v) Employee
has had an opportunity to have this Agreement reviewed by legal counsel of
Employee's choice.

          (dd) Employee represents and warrants that his employment by Employer
does not and will not breach any agreement or duty, which Employee has to any
other Person to keep in confidence any confidential information belonging to
others or not to compete with others. Employee shall not disclose to Employer or
use on its behalf any confidential information belonging to others.

     12.  Intellectual Property Rights. Employee acknowledges that the
          ----------------------------
proprietary rights to any original works, concepts, software, manuals, programs,
routines, inventions, trademarks, servicemarks, and tradenames developed, or
conceived by Employee, whether singularly or in conjunction with another Person,
during the term of this Agreement (collectively "Inventions") shall be the
property of Employer. Accordingly, Employee agrees as follows. Any "Inventions"
developed from Authorized Outside Employment Activities defined on Schedule C,
attached, shall not be subject to any of the provisions under this section,
Intellectual Property Rights.

          (o)  Employee hereby assigns, and shall assign in the future, any and
all of Employee's rights in or to all Inventions.

          (p)  Employee shall promptly disclose in writing to Employer any
invention. If requested by Employer, Employee will execute, file, and prosecute
any and all applications and assignments necessary or proper to vest in Employer
the complete rights in and to any Inventions.

          (q)  If Employer chooses to pursue any patent or other application for
any Invention, Employer shall bear all costs and fees in connection with the
application.

          (r)  If Employer declines in writing to pursue any patent or other
application for an Invention, Employee may with the written consent of Employer
pursue the application in Employee's own name and at Employee's own expense,
provided that Employer shall have a perpetual, world-wide, royalty-free license
and right to use, or to
<PAGE>

adapt and develop in any way, any and all Inventions, whether or not protectable
under any applicable law.

          (s)  Upon the termination of this Agreement for any reason, Employee
shall deliver to Employer any and all notes, records, documents and other
material relating to any completed or incomplete Inventions, which Employee
worked on prior to such termination.

          (t)  Except as set forth on Schedule C attached to and incorporated in
this Agreement, Employee shall not assert any rights to any Inventions as having
been made or acquired by Employee prior to being employed by Employer, or since
then and not covered by this Agreement.

          (u)  Employee need not assign to Employer any rights to an invention,
etc. wholly conceived and developed by Employee after the termination of this
Agreement, unless the conception or development of such invention, etc. involves
the use of confidential or proprietary information obtained by Employee while
employed by Employer.

     13.  Governing Law and Forum. All questions regarding this Agreement shall
          -----------------------
be governed by the laws of Virginia, except that in the case of an issue
regarding the reasonableness of any restrictive covenants in Sections 10, 11 or
12 of this Agreement, the parties agree to apply the law of the state wherein
Employer files legal action to enforce any restrictive covenant. Any suit
relating to this Agreement must be brought in the Circuit or General District
Courts of the City of Virginia Beach, Virginia, provided, however, Employer may
file legal action in connection with the enforcement of any of the restrictive
covenants contained in this Agreement in any state or federal court where
Employer in its discretion deems it appropriate for its protection.

     14.  Successors and Assigns. This Agreement shall be binding upon and inure
          ----------------------
to the benefit of the parties and their heirs, personal representatives,
successors and assigns.

     15.  Assignability. The rights and obligations of Employee under this
          -------------
Agreement may not be assigned or delegated. The rights and obligations of
Employer may be assigned or delegated without the consent of Employee.

     16.  Offset Against Compensation. Upon termination of this Agreement
          ----------------------------
Employee authorizes Employer to offset against any compensation or other amounts
owing to Employee any sums that Employee owes to Employer and which are
evidenced in writing.

     17.  Notices. Any notice or other communication required or permitted by
          -------
this Agreement shall be in writing and addressed to Employer at its
administrative headquarters and to Employee at his residence, as indicated by
the records of the Employer, and shall be deemed to have been given, made and
received only:

          (a)  upon deliver, if personally delivered to a party;
<PAGE>

          (b)  one business day after the date of dispatch, if by facsimile
               transmission;

          (c)  one business day after deposit, if delivered by a nationally
               recognized courier service offering guaranteed, overnight
               delivery; or

          (f)  Three days after deposit in the United States mail, certified
               mail, postage prepaid, return receipt requested.

     18.  Headings. The headings in this Agreement are for convenience only and
          --------
are not a part of the substantive agreement of the parties, nor shall the
headings be used in the interpretation or construction of this Agreement.

     19.  Number and Gender. Whenever used in this Agreement, the singular shall
          -----------------
include the plural, and the plural shall include the singular. The masculine
gender shall include the feminine and the neuter.

     20.  Severability. If any provision of this Agreement is determined to be
          ------------
unenforceable, the remainder of this Agreement shall be construed and enforced
as if the unenforceable provision had not been contained in this Agreement, and
each provision of this Agreement shall be valid and enforceable to the fullest
extent permitted by law.

     21.  Entire Agreement. This Agreement is intended to be a complete,
          ----------------
exclusive, and final expression of the parties' agreements concerning Employee's
employment, merging and replacing all prior negotiations, offers,
representations, warranties and agreements, including but not limited to
employment agreements. To the extent that Employee was employed by Employer
prior to the date of this Agreement, this Agreement is in confirmation of the
agreements previously reached and under which the parties have been working. No
course of prior dealing between the parties, no usage of trade, and no parole of
extrinsic evidence of any nature shall be used to supplement or modify any of
the terms of this Agreement.

     22.  Modification and Waiver. The provisions of this Agreement may not be
          ------------------------
modified or waived, including the waiver of the provisions of this Section,
except by a written instrument, signed by the party against whom such
modification or waiver is sought to be enforced.

     23.  Survival. Any provision of this Agreement, which imposes any
          --------
obligation upon Employee, which may extend beyond the term of this Agreement,
shall survive the termination of this Agreement.

     24.  Third Party Beneficiaries. The provisions of this Agreement are
          -------------------------
intended to benefit only the parties to this Agreement. No person not a party to
this Agreement shall be deemed to be a third party beneficiary of this
Agreement, nor shall any such person be empowered to enforce the provisions of
this Agreement, except to the extent such a person becomes a permitted assignee
of one of the parties.
<PAGE>

     25.  Cost of Enforcement. In the event of the enforcement of any of the
          -------------------
terms of this Agreement by Employer, due to a breach or noncompliance by
Employee, Employee agrees to pay all expenses, including legal fees, incurred by
Employer in the enforcement of this Agreement and the pursuit of any other
remedies afforded Employer by law for damages or otherwise.

     26.  Non-Waiver. The failure of the Employer at any time to require the
          ----------
performance by the Employee of any of the provisions, covenants and conditions
hereof shall in no way affect its right thereafter to enforce the same; nor
shall the waiver by the Employer of any breach of this Agreement, term,
provision, covenant or condition. The failure by Employer to require performance
by any other employee of any provision, covenant or condition in that employee's
employment agreement shall in no way affect Employer's right to enforce this
Agreement or any covenant herein.

     WITNESS the following signatures and seals:

              EMPLOYER:

              APPROVED FINANCIAL CORP.

              By:  Eric Yeakel             BY: Jean S. Schwindt

              Title: Chief Financial Officer    Title: Executive Vice President

              EMPLOYEE:

              _____________________________________________
              Allen D. Wykle
<PAGE>

                                   SCHEDULE A

                       ADDITIONAL SPECIFIC DUTIES ASSIGNED
                   UPON THE EXECUTION OF EMPLOYMENT AGREEMENT

         Allen D. Wykle shall be responsible for all duties assigned to him by
the Board of Directors of the Company. Such duties will primarily relate to, but
are not restricted to, the customary duties associated with the position of
Chief Executive Officer and President.
<PAGE>

                                   SCHEDULE B
                                   ----------

          2.   Base Salary. The initial monthly base salary shall be $ 34,864
               commencing on December 1, 2000, and ending on December 31, 2001.
               For each subsequent year of the Agreement, which will be January
               through December, the base salary will increase by 10%,
               retroactive to January 1 of the respective year, if the net
               income after tax of the Company increases by 10% over the
               previous year. In the event that the net income after tax
               increases by less than 10% over the previous year, the base
               salary will increase by 6%.

               Net income after tax for the years 2000 and 2001, will exclude
               any dividend or capital gain income resulting from the Company's
               current investment in IMC Mortgage Company common stock in the
               calculation of the percentage increase in year to year net income
               after tax.

          3.   Group Benefits. Employee shall be entitled to group benefits as
               contained in the stated written policy of Approved Financial
               Corp., which may from time to time be revised by the Company.

          4.   Transportation. Employee is entitled to Company provided
               automobiles.

          5.   Vacation. Employee shall be entitled to three (3) weeks paid
               vacation each year.

          5.   Bonus for years ending after December 31, 2000. Employee will
               participate in Tier 1 of a Management Bonus which was approved by
               the Board of Directors on December 1, 2000, a copy of which is
               attached as Exhibit 1 to this Schedule B.

          6.   Compensation after termination. If Employee dies, becomes
               permanently disabled, terminates his employment or is terminated
               for cause as defined in the Agreement, this contract shall cease,
               and no further compensation or benefits in any form shall be paid
               Employee. If this Agreement is terminated by Employer without
               cause, then Employee shall be entitled to the compensation and
               benefits which Employee would have received but for the
               termination without cause.
<PAGE>

                                  SCHEDULE C

                                     NONE.
<PAGE>

                             MANAGEMENT BONUS PLAN
                          EXHIBIT 1 TO SCHEDULE B OF
                      Allen D. Wykle EMPLOYMENT AGREEMENT

          The following is a description of the Management Bonus Plan ("Plan")
     as ratified by Approved Financial Corp ("AFC") Board of Directors on
     December 1, 2000. The Plan is effective as of the year ended December 31,
     2001 and until revoked or amended by the Compensation Committee of the
     Board of Directors.

          The term "Employer" is meant to refer to Approved Financial Corp. The
     term "Employee" is meant to refer to Participants of the Plan as designated
     and amended by the authority of the Compensation Committee of the Board of
     Directors of AFC.

  DEFINITIONS:

Return on Stockholder's Equity ("ROE") - After-tax annual net income per share
--------------------------------------
(net of accrual for Management Bonus Plan) as a percentage of Average
Stockholder's Equity per share during the year as carried on the Balance Sheet
of Approved Financial Corp.

          Average Stockholder's Equity - The average stockholder's equity as
          ----------------------------
          determined by the Employer's audited consolidated financial
          statements.

"Base Return" - 20% ROE
-------------

          " Minimum Base Return" - $1,000,000
          ----------------------

          "Excess Return" - The Percentage of ROE in excess of the Base Return
          ---------------
          (Subject to Minimum Base Rate)

          "Base Salary" - Employee Salary paid during last fiscal year. (Other
          -------------
          forms of compensation such as bonus and commission payments are NOT
          counted as Base Salary)

          "Gross Bonus Percentage" the percentage resulting from dividing the
          ------------------------
          Excess Return by the Base Return.

          "Manager Bonus Percentage" - the percentage of the Employee's prior
          --------------------------
          year Base Salary due as Management Bonus up to a maximum percentage of
          Base salary as defined by the assigned Tier Level.
<PAGE>

BONUS CALCULATION:

     7.   Gross Bonus Percentage = Excess Return /  Base Return
          ----------------------

     8.   Manager Bonus Percentage = the lesser of i)Maximum Bonus Percentage
          ------------------------
          for Tier Level or ii)Gross Bonus Percentage

     9.   Manager Bonus = Manager Bonus Percentage times (X) Employee Base
          -------------
          Salary

PAYMENT METHOD:

     Fifty percent (50%) of the Manager Bonus may be payable at the Employer's
     discretion in cash or unregistered shares of common stock of Approved
     Financial Corp. Fifty percent (50%) of the Manager Bonus may be payable at
     the Employee's discretion in cash or unregistered shares of common stock of
     Approved Financial Corp.

PAYMENT DATE:

     The Manager Bonus will be paid within thirty (30) days from the date that
     the Company's yearend financial statements have been reviewed by the
     Company's outside accountants and presented to the Company with an opinion
     letter.

PARTICIPANT QUALIFICATION:

     To earn and receive a bonus under the Management Bonus Plan, the
     participant must be a full time employee of the Company on the Payment Date
     as defined above.

TIER LEVELS:

TIER 1 - Maximum Bonus = 100% of Base salary (1 X Base Salary)
<PAGE>

TIER 2 - Maximum bonus = 40% of Base salary ( 0.4 X Base Salary)

TIER 3 - Maximum bonus = 20% of Base salary ( 0.2 X Base Salary)

CALCULATION EXAMPLES:

EXAMPLE Tier 1:

     Base Salary = $100,000

     Base Return = 30% and is ** Minimum Base Return

     Excess Return = 30% - 20% = 10%

          Gross Bonus Percentage = 10% / 20% = 50%

     Manager Bonus Percentage = 50%

     Manager Bonus = 50% * $100,000 = $50,000

EXAMPLE Tier 2:

     Base Salary = $75,000

     Base Return = 30% and is ** Minimum Base Return

     Excess Return = 30% - 20% = 10%

          Gross Bonus Percentage = 10% / 20% = 50%

     Manager Bonus Percentage = 40%

     Manager Bonus = 40% * $100,000 = $40,000

EXAMPLE Tier 3:

     Base Salary = $60,000

     Base Return = 30% and is ** Minimum Base Return

     Excess Return = 30% - 20% = 10%

     Gross Bonus Percentage = 10% / 20% = 50%

     Manager Bonus Percentage = 20%

     Manager Bonus = 20% * $60,000 = $12,000

**Greater than or equal to<PAGE>

                                                                    EXHIBIT 10.1

                                CERTICOM CORP.
                        2000 DIRECTORS' INCENTIVE PLAN

     1.  Purposes of the Plan.  The purposes of this Directors' Incentive Plan
         --------------------
are to attract and retain the best available individuals to serve as Directors
of the Company and to encourage their continued service on the Board. All
Options granted hereunder shall be "nonstatutory stock options" for United
States federal income tax purposes and shall be issued pursuant to the terms of
the Plan and at the discretion of the Board. Common Shares, which are separate
from Options, may be issued hereunder and shall be issued pursuant to the terms
of the Plan and at the discretion of the Board. Common Shares and Options may be
issued hereunder to Directors for services as members of the Board or a
committee thereof or for consulting or employment services provided by a
Director to the Company in a capacity other than as a member of the Board or a
committee thereof.

     2.  Definitions.  As used herein, the following definitions shall apply:
         -----------

         (a)  "Board" means the Board of Directors of the Company.
               -----

         (b)  "Change of Control" means a sale of all or substantially all of
               -----------------
the Company's assets, or any merger or consolidation of the Company with or into
another corporation other than a merger or consolidation in which the holders of
more than 50% of the shares of capital stock of the Company outstanding
immediately prior to such transaction continue to hold (either by the voting
securities remaining outstanding or by their being converted into voting
securities of the surviving entity) more than 50% of the total voting power
represented by the voting securities of the Company, or such surviving entity,
outstanding immediately after such transaction. A "Change of Control" shall also
occur if a single party and its affiliates (as defined in Rule 12b-2 promulgated
pursuant to the Exchange Act) acquires capital stock of the Company representing
more than 50% of the voting securities of the Company.

         (c)  "Code" means the U.S. Internal Revenue Code of 1986, as amended.
               ----

         (d)  "Common Shares" means the common shares of the Company.
               -------------

         (e)  "Company" means Certicom Corp., a corporation organized under the
               -------
laws of the Yukon Territory or any successor entity thereto.

         (f)  "Continuous Status as a Director" means the absence of any
               -------------------------------
interruption or termination of service as a Director.

         (g)  "Corporate Transaction" means a sale of all or substantially all
               ---------------------
of the Company's assets, or a merger, consolidation or other capital
reorganization of the Company with or into another corporation.

                                      -1-
<PAGE>

          (h)  "Director" means a member of the Board.
                --------

          (i)  "Disability" means total and permanent disability as defined in
                ----------
Section 22(e)(3) of the Code.

          (j)  "Exchange Act" means the Securities Exchange Act of 1934, as
                ------------
amended.

          (k)  "Fair Market Value" per Share at any date shall be the closing
                -----------------
price of the Shares on the Nasdaq National Market (the "NNM") (or if the Shares
are not then listed and posted for trading on the NNM, on such stock exchange on
which such Shares are then listed and posted for trading as may be selected for
such purpose by the Board) on the trading day immediately preceding the Grant
Date or, in the event of a measurement of Share price pursuant to Section 7(c),
the trading day immediately preceding the surrender of the Shares. In the event
that the Shares are not listed and posted for trading on the NNM or any stock
exchange, the Fair Market Value shall be determined by the Board in its sole
discretion. Notwithstanding the preceding, in the event that the Shares are
listed in a currency other than U.S. dollars, the Fair Market Value shall be
converted into U.S. dollars from such currency based on the New York foreign
exchange mid-range rates applying to trading among banks in the amounts of $1
million or more as quoted at 4 p.m., New York time, on the trading day preceding
the Grant Date (or in the event of a measurement of Share price pursuant to
Section 7(c), the date prior to the surrender of the Shares) as reported by
Reuters and other sources or, if not available, such other exchange rate as
determined by the Board in its sole discretion.

          (l)  "Grant Date" means, with respect to an Option, the date on which
                ----------
the Option is granted to the Director in accordance with Section 4 of the Plan.

          (m)  "Option" means a stock option granted pursuant to the Plan.
                ------

          (n)  "Optioned Shares" means the Common Shares subject to an Option.
                ---------------

          (o)  "Optionee" means a Director who receives an Option.
                --------

          (p)  "Outside Director" means a member of the Board who is not also
                ----------------
employed by the Company on a full-time basis. The payment of fees and other
consideration for service on the Board and its committees shall not be
sufficient in and of itself to constitute "employment" by the Company. A
Director will not be deemed to be employed by the Company on a full-time basis
if he or she is customarily employed for twenty hours or less per week or for
five months or less in a calendar year. Consultants who are not eligible to
participate in the Company's Employee Stock Purchase Plan will not be deemed to
be employed by the Company on a full-time basis.

          (q)  "Plan" means this 2000 Directors' Incentive Plan.
                ----

                                      -2-
<PAGE>

          (r)  "Rule 16b-3" means Rule 16b-3 promulgated under Section 16 of
                ----------
the Exchange Act or any successor rule thereto.

          (s)  "Share" means a Common Share, as adjusted in accordance with
                -----
Section 10 of the Plan.

     3.   Common Shares Subject to the Plan.  Subject to the provisions of
          ---------------------------------
Section 10 of the Plan, the maximum aggregate number of Shares which may be
subject to options and/or issued under the Plan is 500,000 Common Shares.  The
Shares may be authorized, but unissued, or reacquired Common Shares.

     If an Option should expire or become unexercisable for any reason without
having been exercised in full, the unpurchased Shares that were subject thereto,
shall, unless the Plan has been terminated, become available for future grant
under the Plan. In addition, any Common Shares that are retained by the Company
upon exercise of an Option in order to satisfy the exercise price for such
option, or any withholding taxes due with respect to such exercise, shall be
treated as not issued and shall continue to be available under the Plan. If
Shares that were acquired upon exercise of an Option are subsequently
repurchased by the Company, such Shares shall not in any event be returned to
the Plan and shall not become available for future grant under the Plan.

     4.   Administration of the Plan.
          --------------------------

          (a)  Administrator.  Except as otherwise required herein, the Plan
               -------------
shall be administered by the Board, or a committee of the Board appointed by the
Board for such purpose. Any committee of the Board appointed by the Board to
administer the Plan shall have such powers to administer the Plan as determined
by the Board. As used in the Plan, the term Board shall include any committee of
the Board appointed by the Board for purposes of administering the Plan. If the
Board delegates administration of the Plan to a committee of the Board, the
Board may reinvest the full Board with the administration of the Plan at any
time.

          (b)  Option Grants.  The Board, in its discretion, may from time to
               -------------
time, grant Options to Outside Directors. The Board shall determine the terms
and conditions of each such Option that it grants, including the numbers of
Shares represented by the Option. Except as otherwise determined by the Board,
any Option granted pursuant to this Section 4(b) shall provide:

                         (A)  the term of the Option shall be ten (10) years;

                         (B)  the Option shall be exercisable only while the
Outside Director remains a Director or within one year of the date the
Director's Continuous Status as a Director terminates, except as set forth in
Section 8(b);

                         (C)  the exercise price per Share shall be the Fair
Market Value per Share on the Grant Date; and

                                      -3-
<PAGE>

                         (D)  the Option shall vest in accordance with the
following schedule: the right to exercise the Option for 25% of the Optioned
Shares shall vest on the first anniversary of the Grant Date of the Option, and
thereafter the Option shall vest for a further 2.083333% of the Optioned Shares
following the expiration of each one-month period following the expiration of
the initial twelve-month period from the Grant Date; provided, however, that if
the Optionee ceases to serve as a Director for any reason, other than as a
result of death or Disability, vesting shall cease as of the date of such
termination. Any Option held by a Director shall vest in full at the time of a
Director's death or his or her ceasing to be a Director as a result of his or
her Disability.

               (c)  Power of the Board.  Subject to the provisions of the Plan
                    ------------------
and subject to any required regulatory or shareholder approvals, the Board shall
have the authority, in its discretion: (i) to grant Options to Outside
Directors; (ii) to issue Shares to Outside Directors; (iii) to determine upon
review the Fair Market Value of the Shares or the Options; (iv) to determine the
price per share for any Shares to be issued; (v) to determine the Outside
Directors to whom, the time or times at which, and the number of Shares for
which Options may be granted or Shares may be issued; (vi) to interpret the
Plan; (vii) to prescribe, amend and rescind rules and regulations relating to
the Plan; (viii) to determine the terms and provisions of each Share Agreement
or Option Agreement which may be entered into; (ix) to authorize any person to
execute on behalf of the Company any agreement required to effectuate the grant
of any Option or the issuance of any Shares; and (x) to make all other
determinations deemed necessary or advisable for the administration of the Plan.

               (d)  Effect of Board's Decision.  All determinations of the
                    --------------------------
Board shall be final and binding on all Optionees and any other holders of any
Options or Shares granted under the Plan.

               (e)  Suspension or Termination of Option.  If the Chief
                    -----------------------------------
Executive Officer of the Company or his or her designee reasonably believes that
an Optionee has committed an act of misconduct, such officer may suspend the
Optionee's right to exercise any Option pending a determination by the Board
(excluding the Outside Director accused of such misconduct). If the Board
(excluding the Outside Director accused of such misconduct) determines an
Optionee has committed an act of embezzlement, fraud, dishonesty, nonpayment of
an obligation owed to the Company, breach of fiduciary duty or deliberate
disregard of the Company rules resulting in loss, damage or injury to the
Company, or if an Optionee makes an unauthorized disclosure of any Company trade
secret or confidential information, engages in any conduct constituting unfair
competition, induces any Company customer to breach a contract with the Company
or induces any principal for whom the Company acts as agent to terminate such
agency relationship, neither the Optionee nor his or her estate shall be
entitled to exercise any Option whatsoever. In making such determination, the
Board of Directors (excluding the Outside Director accused of such misconduct)
shall act fairly and shall give the Optionee an opportunity to appear and
present evidence on the Optionee's behalf at a hearing before the Board or a
committee of the Board.

                                      -4-
<PAGE>

     5.   Eligibility.  Options may be granted and Shares may be issued only to
          -----------
Outside Directors in accordance with the terms set forth in the Plan. The Plan
shall not confer upon any Optionee any right with respect to continuation of
service as a Director or nomination to serve as a Director, nor shall it
interfere in any way with any rights which the Director or the Company may have
to terminate his or her directorship at any time.

     6.   Term of Plan.  The Plan shall become effective upon its approval by
          ------------
the shareholders of the Company as described in Section 16 of the Plan;
provided, however, that if a later date is set for implementation by the Board
after adoption and/or approval has occurred, the Plan shall not become effective
until such later date. The Plan shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 12.

     7.   Consideration and Payment.
          --------------------------

          (a)   Consideration.  The consideration for any Common Stock to be
                -------------
issued shall be such consideration as is determined by the Board.

          (b)   Exercise Price.  The per share exercise price for the Shares to
                --------------
be issued pursuant to Options granted hereunder shall be as set forth in Section
4.

          (c)   Payment.  The payment of the exercise price for any Optioned
                --------
Shares shall be paid in full at the time of exercise of any Option and shall
consist entirely of: (i) cash; (ii) check; (iii) other Shares which (x) in the
case of Shares acquired directly or indirectly from the Company, have been owned
by the Optionee for more than six (6) months on the date of surrender, and (y)
have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of the Shares as to which said Option shall be exercised; (iv)
delivery of a properly executed exercise notice together with such other
documentation as the Company and the broker, if applicable, shall reasonably
require to effect an exercise of the Option and delivery to the Company of the
sale or loan proceeds required to pay the exercise price; (v) consideration
received by the Company under a cashless exercise program implemented by the
Board in connection with the Plan; or (vi) any combination of the foregoing
methods of payment. Payment for any Shares acquired, other than Optioned Shares,
shall be in such manner as determined by the Board and may include the provision
of services to the Company to the extent permitted by law.

     8.   Exercise of Option.
          ------------------

          (a)  Procedure for Exercise; Rights as a Shareholder.  Any Option
               -----------------------------------------------
granted hereunder shall be exercisable at such times as are set forth in Section
4 hereof; provided, however, that no Options shall be exercisable until such
shareholder approval of the Plan as is required by the applicable corporate,
securities and stock exchange rules has been obtained.

     An Option may not be exercised for a fraction of a Share.

                                      -5-
<PAGE>

     An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may consist of any consideration and method of payment
allowable under Section 7(c) of the Plan. Until the issuance (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) of the stock certificate evidencing such Shares,
no right to vote or receive dividends or any other rights as a shareholder shall
exist with respect to the Optioned Share, notwithstanding the exercise of the
Option. A share certificate for the number of Shares so acquired shall be issued
to the Optionee as soon as practicable after exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 10 of the Plan.

     Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

          (b)  Termination of Continuous Status as a Director--Death or
               ---------------------------------------------------------
Disability. If an Outside Director's Continuous Status as a Director terminates
----------
as a result of death or Disability, he or she (or, in the event of death, his or
her estate or a person who acquires the right to exercise the Option by bequest
or inheritance) may, but only within one year after the date of such termination
of Continuous Status as a Director (but in no event after the Option's
expiration date), exercise his or her Option. To the extent that the Option is
not exercised within the time specified herein, the Option shall terminate.

     9.   Non-Transferability of Options.  The Option may not be sold, pledged,
          ------------------------------
assigned, hypothecated, transferred or disposed of in any manner other than by
will or by laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

     10.  Adjustments Upon Changes in Capitalization or Merger.
          ----------------------------------------------------

          (a)  Adjustments.  Subject to any required action by the shareholders
               -----------
of the Company, the number of Common Shares covered by each outstanding Option,
and the number of Common Shares which have been authorized for issuance under
the Plan, but as to which no Options have yet been granted or which have been
returned to the Plan upon cancellation or expiration of an Option, as well as
the price per Share covered by each such outstanding Option, shall be
proportionately adjusted for any increase or decrease in the number of issued
Common Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Shares, or any other increase or
decrease in the number of issued Common Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose

                                      -6-
<PAGE>

determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price or Common Shares subject to an Option.

          (b)  Dissolution and Liquidation.  In the event of the proposed
               ---------------------------
dissolution or liquidation of the Company, each outstanding Option will
terminate immediately prior to the consummation of such proposed action.

          (c)  Corporate Transaction.  In the event of a Corporate Transaction,
               ---------------------
each outstanding Option shall be assumed or an equivalent option shall be
substituted by the successor corporation or a parent or subsidiary of such
successor corporation, unless the successor corporation does not agree to assume
the outstanding Options or to substitute equivalent options, in which case the
Options shall terminate upon the consummation of the transaction; provided
however, that in the event of a Change of Control and notwithstanding whether or
not the outstanding Options are assumed, substituted for or terminated in
connection with the transaction, the vesting of each outstanding Option shall
accelerate in full such that each Optionee shall have the right to exercise his
or her Option as to all of the Optioned Share, including Shares as to which the
Option would not otherwise be exercisable, immediately prior to consummation of
the transaction.

     For purposes of this Section 10(c), an Option shall be considered assumed,
without limitation, if, at the time of issuance of the stock or other
consideration upon such Corporate Transaction, each Optionee would be entitled
to receive upon exercise of an Option the same number and kind of shares of
stock or the same amount of property, cash or securities as the Optionee would
have been entitled to receive upon the occurrence of such transaction if the
Optionee had been, immediately prior to such transaction, the holder of the
number of Common Shares covered by the Option at such time (after giving effect
to any adjustments in the number of Shares covered by the Option as provided for
in this Section 10); provided however that if such consideration received in the
transaction was not solely common stock of the successor corporation or its
Parent, the Board may, with the consent of the successor corporation, provide
for the consideration to be received upon exercise of the Option to be solely
common stock of the successor corporation or its parent equal to the market
value of the per Share consideration received by holders of Common Shares in the
transaction.

     11.  Time of Granting Options.  The Grant Date of an Option shall be the
          ------------------------
date determined in accordance with Section 4 hereof. Notice of the grant shall
be given to each Outside Director to whom an Option is so granted within a
reasonable time after the date of such grant.

                                      -7-
<PAGE>

     12.  Amendment and Termination of the Plan.
          -------------------------------------

          (a)  Amendment and Termination.  The Board may amend, alter, suspend
               -------------------------
or discontinue the Plan, but no amendment, suspension or discontinuation shall
be made which would impair the rights of any Optionee under any grant
theretofore made, without his or her consent. The Company shall obtain
shareholder approval of any Plan amendment or option grant in such manner and to
such a degree as may be required to comply with Rule 16b-3.

          (b)  Effect of Amendment or Termination.  Any such amendment or
               ----------------------------------
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

     13.  Conditions Upon Issuance of Shares.  Shares shall not be issued
          ----------------------------------
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of applicable law, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated thereunder, state securities laws, applicable Canadian securities
laws and the requirements of any stock exchange upon which the Shares may then
be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

     As a condition to the exercise of an Option, the Company may require the
person exercising such Option to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investment and without
present intention to sell or distribute such Shares, if, in the opinion of
counsel for the Company, such representation is required by any of the
aforementioned relevant provisions of law.

     Inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company's counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve
the Company of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained.

     14.  Reservation of Shares.  The Company, during the term of this Plan,
          ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     15.  Option Agreement.  Options shall be evidenced by written option
          ----------------
agreements in such form as the Board shall approve.

     16.  Shareholder Approval.  Continuance of the Plan shall be subject to
          --------------------
approval by the shareholders of the Company at the time of or subsequent to the
adoption

                                      -8-
<PAGE>

of the Plan by the Board. Such shareholder approval shall be obtained
in the manner and to the degree required under applicable laws.

     17.  Electronic Delivery.  Notwithstanding any other provision of the
          -------------------
Plan, to the extent permitted by applicable law, the Company may provide copies
of the Plan and any other documentation or writing to be delivered to any
Director (including Option Agreements and Share Agreements) electronically, and,
as determined by the Board and permitted by applicable law, all notices and
other documentation or writing required to be provided by a Director to the
Company may be transmitted electronically.

                                      -9-

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