Document:

Letter Agreement with Milan Bekich

 
Exhibit 10.3

 

	 May 21, 2001
	 	 
	
	 Milan Bekich
 8301 Strecker Lane
 Plano, TX 75025
	 	 [LOGO]

 
Dear Milan;

 
We are pleased to confirm our verbal job offer of Vice
President, Vertical Markets reporting to Rick Spurr. Your annualized salary will be $175,000,00 US, which will be paid biweekly. You will also receive an annual car allowance of $7,200.00 that will be paid monthly. Your salary and performance will
be subject to review on an annual basis, with the next review currently scheduled for April 2002. You will be eligible to receive a $35,000 US signing bonus within your first 30 days of employment with Entrust. If you voluntarily resign your
employment with Entrust during your first 12 months of employment, you will be required to repay the sign-on bonus. In addition, you will be eligible for a retention bonus of $35,000 payable on your one-year employment anniversary. If you
voluntarily resign your employment within twelve months of receiving the retention bonus, you will be required to repay the retention bonus. Your start date will be Friday, June 1, 2001. 
 
You will also be eligible to participate in the Company’s current management bonus plan, beginning in the second half of
2001, based on the position that you are being offered. Currently, the management incentive is reviewed and paid in accordance with predetermined objectives on a semi-annual basis. Your annual incentive target is 71% of base salary or $125,000 at
100% achievement of individual management objectives and Company revenue targets. The current potential range of payout is 85%-135% of target. However, these incentive programs may be amended or discounted at any time. 
 
You will be granted an award of incentive stock options to purchase 75,000
shares of common stock of Entrust with an exercise price equal to the fair market value of the common stock on the day of grant (close of business your first day of work). The vesting conditions that will be outlined in your Entrust Stock Option
Agreement include the following: 
 

	 	•	 	25% cliff vest after one year of employment; 

 

	 	•	 	1/36 per month after first year, fully vested at four years; 

 

	 	•	 	Ten-year term. 

 
This award is subject to the terms of the Incentive Stock Option Agreement that will be provided to you within several weeks of your start date. 
 
Vacation is set at 15 business days upon acceptance. 
 
As with all employees, your employment with the Company is at will. This means
that your terms and conditions of employment, including but not limited to termination, 
 

	 WWW.ENTRUST.COM
	 	 One Preston Park South
 4975 Preston Park Blvd
 Suite
400
 Plano, TX 75093
	 	 	 	 

 
demotion, promotion, transfer,
compensation, benefits, duties and location of work may be changed with or without cause, for any or no reason, and with or without notice. 
 
Your status as an at-will employee cannot be changed by any statement, promise, policy, course of conduct, in writing or manual except through a written
agreement signed by the CEO of the company. 
 
This employment
offer is contingent upon the following: 
 

	•	 	Your signing the following agreements and returning with your offer letter:   Entrust’s Conflict of Interest and Intellectual Property and
Confidentiality. By accepting this offer of employment at will, you also agree to any terms and conditions contained in those documents as written. (included with this letter) 

 

	•	 	Your completing the employment application (included in offer package) 

 

	•	 	Your ability to provide documentation to establish your identity and eligibility for employment as required under the Immigration Reform and Control Act of 1986.
Please review the enclosed “List of Acceptable Documents”, and provide the appropriate ones to Human Resources prior to your first day of employment (included in offer package). 

 

	•	 	Your taking, and receiving a negative result on, a drug screen designed to detect the current use of illegal drugs. Enclosed is an information sheet describing the
drug screen procedure and the location of the lab or clinic closest to your home address. If you either, fail to take the test, or secure a positive result, you may not reapply for a twelve month period. 

 

	•	 	Your satisfactory completion of our pre-employment background investigation, which will include confirmation of your degrees, diplomas and/or certificates. The
authorization form should be completed and faxed, within two business days, to OccuScreen at 877-464-5656. Upon your request, we will identify any consumer reporting agency involved in this process so that you may, if you wish, seek access to its
records as provided under the relevant statute. 

 
We
believe that your abilities and our needs are compatible and that your acceptance of this offer will prove mutually beneficial. However, it is understood and agreed that your employment is terminable at the will of either party and is not an
employment agreement for a year or any other specified term. 
 
To
accept and confirm your start date and this employment at will offer, please contact me at 972.943.7331 within five days of this letter’s date, or Sherry Crawford, Sr. Human Resources Assistant at 972.943.7320. Please sign and return the
original offer letter along with all other required documentation to Sherry Crawford before your first day of employment. 
 

	 WWW.ENTRUST.COM
	 	 One Preston Park South
 4975 Preston Park Blvd
 Suite
400
 Plano, TX 75093
	 	 	 	 

 
Please feel free to direct any
questions regarding the terms of the offer to Rick Spurr or me 
 
Sincerely, 
 
/s/    B. Jeff Bearrows 
B. Jeff Bearrows 
V.P., Human Resources 
 

	 WWW.ENTRUST.COM
	 	 One Preston Park South
 4975 Preston Park Blvd
 Suite
400
 Plano, TX 75093
	 	 	 	 

 
I have read, understood, and
therefore, accept this offer of employment at will, as set forth above, and will report on
                                        
        . 
 

	 Signature:                    /s/    Milan Bekich
                     __________________________________
	 	 Date: 
             ____________________________________

 
Upon your acceptance of
this offer as set forth above, please provide or confirm your social security number and date of birth. This will facilitate your enrollment on our payroll. 
 
SS#: :________________________________________ 
 
Date of Birth: ______________________________ 
 
Attachments: 
 
Background Information Authorization 
Benefit Plan Summary 
Conflict of Interest
Agreement 
Intellectual Property and Confidentiality Agreement 
Drug Screen Procedures 
Current Cash Incentive Plan 
I-9 Form (Employment Identification & Verification) 
W-4 Form (U.S. Federal Tax Withholding) 
Application Form 
 

	 WWW.ENTRUST.COM
	 	 One Preston Park South
 4975 Preston Park Blvd
 Suite
400
 Plano, TX 75093Officer Retention Program and Agreement with Colin Wyatt

Exhibit 10.4 
 

	 [LOGO]
	 	 March 27, 2001

 
 

	 Personal & Confidential

	
	 To:
	 	 Colin Wyatt

	 From:
	 	 David Thompson & Alberto Yepez

	 Re:
	 	 Officer Retention Program & Agreement

 
We
are pleased to announce that effective on March 6, 2001, the Entrust Board of Directors approved an Officer Retention Program. In your current position as Sr. Vice President/GM, EMEA, you are eligible for this program. 
 
The Officer Retention Program is intended to address concerns
that corporate officers can have during this CEO transition period. The Retention Program provides for a reasonable severance package triggered if the eligible officer suffers an Involuntary Termination within one year of the March 6, 2001 effective
date. The Retention Program is intended to reduce uncertainty over severance treatment in the event of an Involuntary Termination. This will allow officers to continue to focus on lending and executing our business plan during this CEO transition
time. 
 
In the event of Involuntary Termination of
employment with the Company within one year of March 6, 2001, you will be entitled to salary continuation of not less than six months (the “Salary Continuation Period”). During the Salary Continuation Period, you will receive your base
salary at the rate approved by the Board of Directors on January 26, 2001 and communicated to you in February 2001, or a higher base salary if your base salary should be increased beyond the January 26, 2001 Board of Directors approved rate; any
benefits in which you participated prior to receiving notice, and bonuses paid at target at the conclusion of the Salary Continuation Period. In addition, any currently held stock options will continue to vest during the Salary Continuation Period.

 
For purposes of this Program, an Involuntary
Termination shall mean termination of your employment by Entrust without “Cause” or by means of a “Constructive Termination”. For purpose of this Program, “Cause” shall mean: (i) any act of personal dishonesty taken by
the Officer in connection with his or her responsibilities as an employee and intended to result in substantial personal enrichment of the Officer, (ii) Officer’s conviction of a felony, (iii) a willful act by the Officer which constitutes
gross misconduct and which is injurious to Entrust. For purposes of this Program, “Constructive Termination” shall mean: (i) a reduction in the officer’s base salary, other than in proportion to a general reduction of every
employee’s base salary; or (ii) the relocation of the officer to a facility or location more than fifty (50) miles from the officer’s then-current location without the officer’s express written consent. 

 
Except as expressly provided
for herein, the Officer Retention Program does not change your employment status prior to the execution of this Agreement. Your employment status cannot be changed by any statement, promise, policy, or course of conduct except through a written
agreement signed by the Chief Executive Officer of Entrust. Moreover, any rights established by this Program shall expire and not be renewed as of March 6, 2002. 
 
Eligibility for the Officer Retention Program is contingent upon signing this Agreement along with the attached
Non-Competition and Non-Solicitation Agreement, which Agreement shall be in effect for the effective period of this Program. In the event of Involuntary Termination, moreover, receipt of pay, benefits, and bonus during the Salary Continuation Period
is contingent upon signing a reasonable release that would be provided at that time. 
 
Finally, this memorandum also serves to remind you that in your current capacity as an officer of Entrust Technologies, you are entitled to acceleration of vesting of all outstanding options granted prior to or during the
period of your appointment as an officer, in the event of an Acquisition event in the circumstances specified in this letter. This provision is not limited to the effective period of this Program. The provisions concerning this shall be as follows:

 
Upon the occurrence of an Acquisition Event (as
defined herein), then the vesting schedule of this option shall be accelerated so that all of the number of shares which would otherwise have first become exercisable on any vesting date scheduled to occur on or after the date of such Acquisition
Event shall become vested immediately prior to such Acquisition Event. An “Acquisition Event” shall mean: (I) any merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or acquiring entity) less than 60% of the combined voting power of the voting securities of the Company or such surviving or
acquiring entity outstanding immediately after such merger or consolidation; (II) any sale of all or substantially all of the assets of the Company; (III) the complete liquidation of the Company; or (IV) the acquisition of “beneficial
ownership” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934 (the “Exchange Act”) of securities of the Company representing 60% or more of the combined voting power of the Company’s then outstanding securities
(other than through an acquisition of securities directly from the Company) by any “person, as such term is used in Sections 13(d) and 14(d) of the Exchange Act other than the Company, any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, or any corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company. 
 
During the effective period of this Program, the terms of this Agreement are
paramount to the terms of any and all prior employment agreements you have with Entrust. In the event of any conflict, the terms of this Agreement shall govern. Any questions you may have should be directed to David Thompson or Alberto Yepez.

 

2 

 

	 Sincerely,
	 	 	 	 
	
	 /s/    David L. Thompson         

	 	 	 	 /s/    Alberto Yepez         

	 David L. Thompson
 Co-CEO, CFO
	 	 	 	 Alberto Yepez       
 Co-CEO, President Entrust Ventures

 
 
 
 

	 I have read, understood and therefore, accept this Officer Retention Program, as set forth above, effective
on March 6, 2001.
	 	 	 	 
	
	  
  
  
 /s/    Colin Wyatt  

	 	 	 	 
	 (Name)
  
  
  
 Attachment:
 Non-Competition and Non-Solicitation Agreement
	 	 	 	 	 	 

 

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