Document:

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                                                                   EXHIBIT 10.31
                                                                   -------------

                                  Entrust, Inc.

February 27, 2002

To: David Thompson

From Jay Kendry

I apologize for the delay in sending this notice.

As you may recall by way of a letter dated March 27, you agreed to participate
in the Entrust Officer Retention Program. At the October 23, 2001 meeting, the
Board of Directors of Entrust approved Entrust, Inc. offering the Officer
Retention Program and Agreement (the "Agreement") between you and Entrust, Inc.
dated March 27, 2001 to eligible participants on an ongoing basis. I am making
this offer to you on behalf of Entrust, Inc. as a proper officer authorized by
the Board.

In consideration for you agreeing to altering the term of the Non-Competition
and Non-Solicitation Agreement provided to you in conjunction with the Agreement
to continue through the term of your employment with Entrust, Inc. and for one
year thereafter, Entrust, Inc. hereby offers to extend the term of your
Agreement through the duration of your employment with Entrust, Inc. or any
controlled subsidiary of Entrust, Inc.

All other terms of your Agreement shall remain in full force and effect. There
are no other modifications to the Agreement. This constitutes the entire
amendment to the Agreement; there are no oral modifications or representations.
In the event of conflict between this amendment and the Officer Retention
Program and Agreement, the provisions of this Amendment shall govern.

Yours truly,

/s/ J.D. Kendry

Jay Kendry

I have read and agree to be bound by the terms of my Officer Retention Program
and Agreement as amended by the provisions specified herein.

/s/ David L. Thompson

David Thompson

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                              [ENTRUST LETTERHEAD]

                                              March 27, 2001

Personal & Confidential

To:   David Thompson
From: Jim Thomson
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
Executive Vice President and CFO, 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 leading 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 purposes 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.

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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

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Sincerely,

/s/ James A. Thomson
--------------------------------------------
James A. Thomson
Chairman of the Board

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

  /s/ David L. Thompson
--------------------------------------------
(Name)

Attachment:
Non-Competition and Non-Solicitation Agreement

                                       3<PAGE>

                                                                   EXHIBIT 10.32
                                                                   -------------

                 NON-COMPETITION AND NON-SOLICITATION AGREEMENT
                 ----------------------------------------------

      This Agreement is made between Entrust Technologies Inc., a Maryland
corporation ("Entrust"), and David Thompson (the "Employee").

      WHEREAS, in order to reduce uncertainty regarding the Employee's continued
employment during the current transition period, Entrust has entered into the
Officer Retention Program and Agreement on the condition that the Employee
execute this Agreement; and

      WHEREAS, during the term of the Officer Retention Program, the Employee
will have access to and be instrumental in developing and implementing critical
aspects of Entrust's strategic business plan;

      WHEREAS, the Employee is an owner of capital stock or options to acquire
the capital stock of the Company and will otherwise personally benefit from the
Officer Retention Program and Agreement contemplated by this Agreement.

      NOW, THEREFORE, in consideration of (i) Entrust entering into the Officer
Retention Program and Agreement, (ii) the benefit to the Employee from the
transactions contemplated in the Officer Retention Program, (iii) the employment
or continued employment of the Employee by Entrust or any of its subsidiaries,
and (iv) the continued receipt and access to confidential, proprietary, and
trade secret information associated with the Employee's position with Entrust,
the Employee and Entrust agree as follows:

      1. Confidentiality. The Employee hereby acknowledges and reaffirms to the
         ----------------
same extent as if restated here in full the promises and obligations set forth
in the Intellectual Property and Confidentiality Agreement signed by the
Employee on or about October 11, 1999 and the Conflict of Interest Agreement
signed by the Employee on or about October 11, 1999.

      2. Non-Competition and Non-Solicitation. The Employee acknowledges and
         -------------------------------------
agrees that the nature of the Entrust confidential, proprietary, and trade
secret information to which the Employee has, and will continue to have, access
to derives value from the fact that it is not generally known and used by others
in the highly competitive, international industry in which Entrust competes. The
Employee further acknowledges and agrees that, even in complete good faith, it
would be impossible for the Employee to work in a similar capacity for a
competitor of Entrust without drawing upon and utilizing information gained
during employment with Entrust. Accordingly, at all times during the Employee's
employment with Entrust and for a period of one year after termination, for any
reason, of such employment, the Employee will not, directly or indirectly:

            (a) Engage in any business or enterprise (whether as owner, partner,
officer, director, employee, consultant, investor, lender or otherwise, except
as the holder of not more than 1 % of the outstanding stock of a company) that
directly or indirectly competes with Entrust's business or the business of any
of its subsidiaries anywhere in the United States, Canada or Europe, including
but not limited to any business or enterprise that develops, manufactures,
markets, or sells any product or service that competes with any product or
service developed, manufactured, marketed or sold, or planned to be developed,
manufactured, marketed

<PAGE>

or sold, by Entrust or any of its subsidiaries while the Employee was employed
by Entrust or any of its subsidiaries; or

            (b) Either alone or in association with others (i) solicit, or
facilitate any organization with which the Employee is associated in soliciting,
any employee of Entrust or any of its subsidiaries to leave the employ of
Entrust or any of its subsidiaries; (ii) solicit for employment, hire or engage
as an independent contractor, or facilitate any organization with which the
Employee is associated in soliciting for employment, hire or engagement as an
independent contractor, any person who was employed by Entrust or any of its
subsidiaries at any time during the term of the Employee's employment with
Entrust or any of its subsidiaries (provided, that this clause (ii) shall not
apply to any individual whose employment with Entrust or any of its subsidiaries
has been terminated for a period of one year or longer); or (iii) solicit
business from or perform services for any customer, supplier, licensee or
business relation of Entrust or any of its subsidiaries, induce or attempt to
induce, any such entity to cease doing business with Entrust or any of its
subsidiaries; or in any way interfere with the relationship between any such
entity and Entrust or any of its subsidiaries.

      3. Miscellaneous.
         --------------

            (a) Extension. If the Employee violates the provisions of Sections 1
                ----------
or 2, the Employee shall continue to be bound by the restrictions set forth in
Sections 1 and 2 until a period of one year has expired without any violation of
such provisions.

            (b) Not Employment Contract. The Employee acknowledges that this
                ------------------------
Non-Competition and Non-Solicitation Agreement does not constitute a contract of
employment and, except as set forth in the accompanying Officer Retention
Program agreement (to which this Agreement is ancillary), does not guarantee
that the Company or any of its subsidiaries will continue his/her employment for
any period of time or otherwise change the at-will nature of his/her employment.

            (c) Interpretation. If any restriction set forth in Sections 1 or 2
                ---------------
is found by any court of competent jurisdiction to be invalid, illegal, or
unenforceable, it shall be modified to the minimum extent necessary to render
the modified restriction valid, legal and enforceable. The parties intend that
the non-competition and non-solicitation provisions contained in this Agreement
shall be deemed to be a series of separate covenants, one for each and every
county of each and every state of the United States of America and each and
every political subdivision of each and every country outside the United States
of America where this provision is intended to be effective.

            (d) Severability. The invalidity or unenforceability of any
                -------------
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

            (e) Waiver of Rights. No delay or omission by Entrust in exercising
                -----------------
any right under this Agreement will operate as a waiver of that or any other
right. A waiver or consent given by Entrust on any one occasion is effective
only in that instance and will not be construed as a bar to or waiver of any
right on any other occasion.

<PAGE>

            (f) Equitable Remedies. The restrictions contained in this Agreement
                -------------------
are necessary for the protection of the business and goodwill of Entrust and its
subsidiaries and are considered by the Employee to be reasonable for such
purpose. The Employee agrees that any breach of this Agreement is likely to
cause Entrust substantial and irrevocable damage and therefore, in the event of
any such breach, the Employee agrees that Entrust, in addition to such other
remedies which may be available, shall be entitled to specific performance and
other injunctive relief.

            (g) Governing Law. This Agreement shall be governed by and construed
                --------------
in accordance with the laws of the State of Texas. Any action, suit, or other
legal proceeding which is commenced to resolve any matter arising under or
relating to any provision of this Agreement shall be commenced only in a court
of the State of Texas (or, if appropriate, a federal court located within
Texas), and Entrust and the Employee each consents to the jurisdiction of such a
court.

            (h) Term. This Agreement shall be effective on March 6, 2001,
subject to the execution by the Employee of the Officer Retention Program and
Agreement. This Agreement shall expire March 6, 2002.

      THE EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT
AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

                                        ENTRUST TECHNOLOGIES INC.

Date:    4/4/01                         By:  /s/ James A. Thomson
       ----------------------------        -------------------------------------

                                        EMPLOYEE:

Date:  April 9, 2001                      /s/ David L. Thompson
       ----------------------------     ----------------------------------------
                                        (Signature)

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