Document:

Compromise Agreement with Colin Wyatt

 
Exhibit 10.7

 
COMPROMISE AGREEMENT 
 
THIS COMPROMISE AGREEMENT is made the 10th day of February 2003
between: 
 
(1) ENTRUST (EUROPE) LIMITED of Apex Plaza
Forbury Road Reading Berkshire RG1 1AX (“the Company”); 
 
and 
 
(2) Colin Wyatt (“the Employee”)

 
WHEREAS: 
 
The Company is entering into this Agreement both for itself and as agent for
its holding Company and subsidiaries within the meaning given by section 736 of the Companies Act 1985 (“Associated Companies”). 
 
IT IS HEREBY AGREED as follows: 
 

	1.	 	TERMINATION OF EMPLOYMENT 

 
The Employee’s employment which commenced on 12th April 1999 will be deemed to have been terminated by mutual consent on 23rd February 2003 (“the Termination Date”) subject to the terms set out in this Agreement. 
 

	2.	 	REMUNERATION UNTIL THE TERMINATION DATE 

 

	2.1	 	The Company confirms that it shall pay the Employee his normal basic salary (less such sums as the Company is obliged by law to deduct by way of income tax and
National Insurance at the rates applicable at the date of payment) due and payable from 23rd August 2002 up until
the Termination Date (“the Salary Continuation Period” as further defined in the Officer Retention Program Agreement made between the Employee and Entrust Inc dated 27th March 2001 and extension thereto dated 28th February 2002). The Employee shall not be required to carry out work for the Company during the Salary Continuation Period and may be engaged, concerned or interested in the management or conduct of any other business
whatsoever provided it does not compete with the business activities of the Company. 

	2.2	 	The Company confirms that it will pay by cheque to the Employee within 7 days of the Termination Date, any pay in lieu of holiday entitlement not taken but accrued
up until the Termination Date (less such sums as the Company is obliged by law to deduct by way of tax and National Insurance). The Company will, upon completion of the Salary Continuation Period provide the Employee with the requisite tax form P45
in respect of his/her employment with the Company. 

 

	2.3	 	The Company confirms that it has paid the usual Employer’s contribution of 7.5% of the Employee’s annual salary (which for the avoidance of doubt means the
Employee’s base salary plus commission/bonuses due and payable to the Employee) pro rata into the employee’s Personal Pension Plan. Further, the Company will continue to make such contributions during the Salary Continuation Period direct
to the said Pension Plan. Such contributions shall be made monthly and shall amount to a sum equal to 7.5% of the Employee’s base salary plus £4,887.50 per month. 

 

	2.4	 	The Company confirms that it will continue to make payments during the Salary Continuation Period in respect of: 

 

	 	(a)	 	life assurance; 

 

	 	(b)	 	long term sickness and disability insurance; 

 

	 	(c)	 	BUPA healthcare and Denplan; and 

 

	 	(d)	 	Company Fuel Card. 

 

	2.5	 	The Company will continue to pay your company car allowance of £1,500 per month during the Salary Continuation Period. 

 

	3.	 	COMPANY PROPERTY 

 

	3.1	 	The Employee confirms that on or before 30th August 2002 he has returned all property belonging to the Company including security pass card and any other equipment
belonging to the Company (except the Employee’s mobile phone which the Employee shall retain and be responsible for paying for during and after the Salary Continuation Period), keys, access or security cards, documents, recordings, photographs,
microfiches, and any other property belonging to the Company, including any copies taken thereof, all of which constitute Company Property and all of which were supplied to enable the Employee to perform the Employee’s duties as an Employee of
the Company. Further the Employee warrants that, to the best of his knowledge and belief, he retains or holds no other property belonging to the Company. 

 

	3.2	 	Notwithstanding the foregoing, the Employee warrants that he retains or holds no software, disks including all back up disks, and copies thereof or other media which
contain Confidential Information in relation to the business of the Company and/or its clients and which belong to the Company including but not limited to all financial information, client data base information, company marketing, promotional and
sales lead information and information containing details of clients requirements. 

 

	4.	 	EXPENSES 

 
The Employee will be paid monies by way of reimbursement for all outstanding expenses (if any) as the Company shall deem to have been
reasonably and properly incurred by the Employee in the fulfilment of his duties up until the Termination Date within 30 days of submission. All expenses shall be submitted within 60 days of the Termination Date save where submission of such
expenses by the Employee is dependant upon receipt of third party information that has not been provided to the Employee within the 60 day period. In such circumstances the Employee shall submit all outstanding expenses immediately following receipt
of the relevant third party information. 
 

	5A.	 	DIRECTORSHIPS 

 
The Employee shall contemporaneously with the signing of this Agreement resign in writing from all directorships and other offices which
he holds with the Company or any Associated Company in the form set out in the letters attached hereto in Schedule 3. 
 

	5.	 	CONFIDENTIALITY OF INFORMATION 

 
In consideration of the Company agreeing to provide the Employee with an employers reference, should he request one, and deal with any
oral enquiries for a reference in a manner consistent with any reference given the Employee: 
 

	 	(i)	 	acknowledges that he continues to be bound by (1) his implied duties of confidentiality, in respect of trade secrets and secret processes; and (2) in accordance with
the restrictions set out at schedule 2 attached; 

 

	 	(ii)	 	agrees that he will not disclose the contents of this Compromise Agreement without the prior written consent of the Company except to his professional advisers,
immediate family members, the Inland Revenue or any other Government body or as otherwise required by law; 

 

	 	(iii)	 	agrees not to make, or cause to be made, (directly or indirectly) any derogatory or critical or disparaging remarks, comments or statement (whether orally or in
writing) about the Company, its Associated Companies or their respective officers or employees; 

 

	 	(iv)	 	agrees that he will not at any time after the Termination Date use or procure the use of the name of the Company or any of its Associated Companies whether or not in
connection with the Employee’s own or any other name in any way calculated to suggest that he continues to be connected with the business of the Company or its Associated Companies or in any way hold himself out as having such a connection;

 
The officers of the Company also
agree not to make, or cause to be made, (directly or indirectly) any derogatory or critical or disparaging remarks, comments or statement (whether orally or in writing) about the Employee. 

	6.	 	WAIVER OF CLAIMS 

 

	6.1	 	The Employee hereby agrees to accept the payments and provisions set out in clause 2 above in full and final settlement of all and any claims the Employee is or
might be entitled to make against the Company or any of its Associated Companies or their respective shareholders, officers or employees in respect of the Employee’s employment, whether contractual, statutory or otherwise (including but not
limited to claims under the laws of England and Wales or Scotland and/or European Community law for breach of contract of employment, wrongful dismissal, unfair dismissal, redundancy, contravention of the Working Time Regulations 1998 and sex, race
or disability discrimination), save for 

 

	 	6.1.1	 	any claim which the Employee may have against the Company at present or in the future in respect of personal injury claims (save for any such claims arising out of
sex race or disability discrimination); 

 

	 	6.1.2	 	any claim that the Employee may have against the Company at present or in the future in respect of accrued pension rights; 

 

	 	6.1.3	 	any claim in respect of which the Employee has no knowledge or awareness as at the date of termination. 

 

	6.2	 	The Employee confirms that no complaint has been made to an Employment Tribunal to date and agrees to refrain from instituting before an Employment Tribunal any
complaint by the Employee against the Company in respect of any allegation that the Company has dismissed the Employee unfairly and/or wrongfully or has been subjected to a detriment or dismissal in contravention of:- the Working Time Regulations
1998 ( as amended), National Minimum Wage Act 1998, Public Disclosure Act 1998, the Sex Discrimination Act 1975, the Race Relations Act 1976 or the Disability Discrimination Act 1995, Equal Pay Act 1970 (as amended), Transfer of Undertakings
(Protection of Employment) Regulations 1981, the Employment Rights Act 1996. The complaint to which this Agreement relates to is the dismissal of the Employee by the Company on the Termination Date as set out in clause 1 above and / or any
detriment, victimisation or contravention of statutory duty in employment (including any failure to consult collectively or individually in a redundancy situation) which the Employee may have suffered as a result of any action of the Company during
the Employee’s employment. 

 

	6.3	 	The Employee agrees that if any proceedings are issued against the Company whether in an Employment Tribunal, County Court, High Court or otherwise (other than in
respect of any proceedings for the enforcement of this Agreement or the Letter Agreement between the parties dated 6 September 2002 (the “Letter Agreement”)), that upon issue of such proceedings the Employee will repay to the Company the
sums set out in the Letter Agreement as a debt due to the Company payable forthwith on demand. 

 

	7.	 	EMPLOYEE’S INDEPENDENT LEGAL ADVICE 

 

	7.1	 	The Employee warrants that he/she has taken independent legal advice from Rebecca Ford of Olswang (“the Legal Adviser”) on the terms and effect of this
Agreement and in particular its’ effect on the Employee’s ability to pursue a complaint before an Employment Tribunal. 

 

	7.2	 	The Employee annexes to this Agreement at Schedule 1 a Certificate signed by the Legal Adviser in the terms set out therein and it is a condition of this Agreement
that the Employee’s Legal Adviser provides the Certificate so annexed to this Agreement at the Schedule. 

 

	7.3	 	The Company agrees that upon receipt of the Certificate referred to in clause 7.2 above and upon receipt of a VAT invoice from Olswang addressed to the Employee but
marked payable by the Company to a maximum value of £900 plus VAT for legal expenses incurred by the Employee in connection with the legal advice given to the Employee by the Legal Adviser, it shall pay such invoice within 30 days of receipt.
The view of the parties is that Inland Revenue Extra Statutory Concession A 81 applies in respect of payment of such invoice for legal advice given to the Employee. 

 

	8.	 	OPTIONS 

 
In consideration of the Employee’s agreement and undertakings set out in Clauses 2 to 6 above, the Company agrees that all share
options which would, save for the acts or omissions of the Company, vest during the Salary Continuation Period continue to vest during such period. The Employee may exercise all his vested share options (less the option price) up to and including
23rd May 2003. 
 

	9.	 	EMPLOYMENT LEGISLATION 

 
The Company hereby confirms that the conditions regulating this Agreement under Section 203(3) of the Employment Rights Act 1996,
Regulation 35(2) of the Working Time Regulations 1998, section 49(4) National Minimum Wage Act 1998, Section 77 (4A) of the Sex Discrimination Act 1975 (as amended) Section 72 (4A) of the Race Relations Act 1976 as amended, section 288 Trade Union
and Labour Relations (Consolidation) Act 1992 (as amended) and Section 9 (3) of the Disability Discrimination Act 1995 are satisfied. 
 
IN WITNESS WHEREOF the parties have executed this Agreement on the day and year set out above. 
 
SIGNED BY: 
 

	 For and on behalf of The Company
	 	 /s/    [signature illegible]

	
	 in the presence of:
	 	 /s/    [signature illegible]

	
	 SIGNED BY: (Employee)
	 	 /s/    Colin Wyatt

	
	 in the presence of:
	 	 /s/    Ann Dougall

SCHEDULE 1 
 
I, Rebecca Ford Solicitor in the firm of Olswang warrant to Entrust Europe Limited that I have given independent legal advice
to Colin Wyatt as to the terms and effect of the agreement to which this Certificate is scheduled, and in particular its effect on his ability to pursue his rights, if any, before an Employment Tribunal. 
 
I confirm that I am a Solicitor of the Supreme Court, that I hold a current
Practising Certificate and that the statutory requirements of Section 203 of the Employment Rights Act 1996, Regulation 35 of the Working Time Regulations, Section 77 (4) of the Sex Discrimination Act 1975, Section 72 (4) of the Race Relations Act
1976 and Section 9 (3) of the Disability Discrimination Act 1995 relating to Compromise Agreements have been met. I further confirm that at the date I gave the advice and as at the date hereof this firm was and is covered by a valid policy of
insurance which covers the risk of a claim by Colin Wyatt in respect of any loss arising in consequence of that advice. 
 

	 SIGNED:
	  	 /s/    Rebecca Ford of Olswang

	 	  	 Solicitor of the Supreme Court

	
	 DATED:
	  	 6/3/3

 

 
SCHEDULE 2

 
CONFIDENTIALITY 
 

	1.	 	You hereby recognize that you will following termination of your employment maintain the confidentiality of all trade secrets, confidential, proprietary, commercial,
technical or other information of which you gained knowledge during the course of your employment with ENTRUST. 

 

	2.	 	You acknowledge that you received in performing or in the course of your duties during your employment with the Company, confidential information pertaining to the
activities, the technologies, the operations and the business, past, present and future, of the Company or its subsidiaries or related or associated companies which information is not in the public domain. Such information includes but is not
limited to customer lists, sensitive price information including discounts and price lists, information relating to the company’s business plans including any information relating to the acquisition of another company or the purchase of the
company by another and all source code and object code relating to the Company’s proprietary software You acknowledge that such confidential information belongs to the Company and that its disclosure or unauthorized use could be prejudicial to
the Company and contrary to its interests. 

 
 

7 

 
SCHEDULE 3

 
RESIGNATION LETTERS 
 
ENTRUST GmbH 
 
Entrust GmbH 
Muenchen Airport Center 
Terminalstrause Mitte 18 
 
85356 Muenchen 
 
22nd August 2002 
 

	 Amtsniederlegung
	 	 Resignation letter

	
	 Sehr geehrte Damen and Herren,
	 	 Ladies and Gentlemen,

	
	 hiermit lege ich mein Amt als Geschäftsfuhrer der Entrust GmbH (vormals: Entrust Technologies GmbH, Amtsgericht Bad
Homburg v.d.H., HRB 6412) mit Wirkung zum heutigen Tage nieder und bitte um schriftliche Bestätigung meiner Amtsniederlegung.
	 	 I hereby notify you of my withdrawal from the office as managing director of Entrust GmbH (formerly: Entrust
Technologies GmbH, Lower Court of Bad Homburg v.d.H., HRB 6412) as of today. May I ask you for a written confirmation of your acknowledgment of my withdrawal from the office.

	
	 Hochachtungsvoll,
	 	 Yours sincerely,

 
    /s/    Colin Wyatt        

    Colin Wyatt 
 

Entrust SARL 
 
Le 22nd Aout 2002 
 
Entrust SARL 
90 Avenue des Champs Elysees 
75008 PARIS 
 
Messieurs, 
 
Suite à nos récents entretiens, je vous confirme par la présente ma démission de mes fonctions de Gérant de votre
société, à compter de ce jour. 
 
Je vous
confirme n’avoir aucune revendication à faire valoir à l’encontre de la société relativement à mon mandat et renonce par avance à toute action à son encontre de ce chef. 
 
Je vous demande de prendre acte de ma décision er de me donner quitus
de mes fonctions lors de l’approbation des comptes annuels. 
 
Veuillez agréer, Messieurs, l’expression de mes sentiments distingués. 
 
/s/  Colin Wyatt 
Colin Wyatt 

 
22nd August 2002 
 
Entrust SARL 
90 Avenue des Champs Elysees 
75008 PARIS 
 
Dear Sirs, 
 
Further our recent conversation, I confirm hereby my resignation from my duties as Manager of your company, as of today. 
 
I confirm not to have any claims against the company relating to my term as
manager and waive bringing any actions against it in this regard. 
 
I ask you to acknowledge my decision and to give discharge from my duties when you approve the annual accounts. 
 
Yours sincerely, 
 
/s/  Colin Wyatt 
Colin Wyatt 

 
EnCommerce Limited

 
The Directors 
enCommerce Limited (the “Company”) 
Carmelite 
50 Victoria Embankment 
Blackfriars 
London 
EC4Y 0DX 
 
22rd August 2002 
 
Dear Sirs 
 
I hereby resign as a director of the Company and confirm that I have no claims against the Company for compensation for loss
of office (whether for wrongful or unfair dismissal or otherwise), for arrears of salary or remuneration, for outstanding expenses or on any other account whatsoever. 
 
Yours faithfully 
 
/s/  Colin Wyatt 
Colin Wyatt 

 
Entrust (Europe) Limited

 
The Directors

Entrust (Europe) Limited (the “Company”) 
Carmelite 
50 Victoria Embankment 
Blackfriars 
London 
EC4Y 0DX 
 
22rd August 2002 
 
Dear Sirs 
 
I hereby resign as a director of the Company and confirm that I have no claims against the Company for compensation for loss
of office (whether for wrongful or unfair dismissal or otherwise), for arrears of salary or remuneration, for outstanding expenses or on any other account whatsoever. 
 
Yours faithfully 
 
/s/  Colin Wyatt 
Colin Wyatt1999 Non-Officer Employee Stock Incentive Plan, as amended

 
Exhibit 10.15

 
ENTRUST, INC. 
 
1999 NON-OFFICER EMPLOYEE STOCK INCENTIVE PLAN

 

	1.	 	Purpose 

 
The purpose of this 1999 Non-Officer Employee Stock Incentive Plan (the “Plan”) of Entrust, Inc., a Delaware corporation (the
“Company”), is to advance the interests of the Company’s stockholders by enhancing the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by
providing such persons with equity ownership opportunities and performance-based incentives and thereby better aligning the interests of such persons with those of the Company’s stockholders. Except where the context otherwise requires, the
term “Company” shall include any of the Company’s present or future subsidiary corporations as defined in Section 424(f) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the
“Code”). 
 

	2.	 	Eligibility 

 
All of the Company’s employees (and any individuals who have accepted an offer for employment), consultants and advisors, other than
those who are also officers (within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”)) or directors of the Company, are eligible to be
granted options, restricted stock awards or other stock-based awards (each, an “Award”) under the Plan. Each person who has been granted an Award under the Plan shall be deemed a “Participant.” 
 

	3.	 	Administration, Delegation 

 
(a) Administration by Board of Directors. The Plan will be administered by the Board of Directors of the Company (the
“Board”). The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable. The Board may correct any defect, supply any
omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency. All decisions by the Board shall be
made in the Board’s sole discretion and shall be final and binding on all persons having or claiming any interest in the Plan or in any Award. No director or person acting pursuant to the authority delegated by the Board shall be liable for any
action or determination relating to or under the Plan made in good faith. 
 

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(b)
Delegation to Executive Officers. To the extent permitted by applicable law, the Board may delegate to one or more executive officers of the Company the power to make Awards and exercise such other powers under the Plan as the Board may
determine, provided that the Board shall fix the maximum number of shares subject to Awards and the maximum number of shares for any one Participant to be made by such executive officers. 
 
(c) Appointment of Committees. To the extent permitted by applicable law, the Board may delegate any
or all of its powers under the Plan to one or more committees or subcommittees of the Board (a “Committee”). All references in the Plan to the “Board” shall mean the Board or a Committee of the Board or the executive officer
referred to in Section 3(b) to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee or executive officer. 
 

	4.	 	Stock Available for Awards 

 
Subject to adjustment under Section 8, Awards may be made under the Plan for up to 2,500,000 shares of common stock, $.01 par value per
share, of the Company (the “Common Stock”). If any Award expires or is terminated, surrendered or canceled without having been fully exercised or is forfeited in whole or in part or results in any Common Stock not being issued, the unused
Common Stock covered by such Award shall again be available for the grant of Awards under the Plan. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 
 

	5.	 	Nonstatutory Stock Options 

 
(a) General. The Board may grant nonstatutory stock options to purchase Common Stock (each, an “Option”) and determine
the number of shares of Common Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option, including conditions relating to applicable federal or state
securities laws, as it considers necessary or advisable. No Option granted under the Plan shall be intended to be an “incentive stock option” as defined in Section 422 of the Code. 
 
(b) Exercise Price. The Board shall establish the
exercise price at the time each Option is granted and specify it in the applicable option agreement. 
 
(c) Duration of Options. Each Option shall be exercisable at such times and subject to such terms and conditions as the Board may
specify in the applicable option agreement. 
 

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(d)
Exercise of Option. Options may be exercised by delivery to the Company of a written notice of exercise signed by the proper person or by any other form of notice (including electronic notice) approved by the Board together with payment in full
as specified in Section 5(e) for the number of shares for which the Option is exercised. 
 
(e) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option granted under the Plan shall be paid for as follows: 
 
(1) in cash or by check, payable to the order of the Company; 
 
(2) except as the Board may, in its sole discretion, otherwise
provide in an Option Agreement, by (i) delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price or (ii) delivery by the Participant to the Company
of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price; 
 
(3) to the extent permitted by the Board and explicitly provided in an Option Agreement (i) by delivery of
shares of Common Stock owned by the Participant valued at their fair market value as determined by the Board in good faith (“Fair Market Value”), which Common Stock was owned by the Participant at least six months prior to such delivery,
(ii) by delivery of a promissory note of the Participant to the Company on terms determined by the Board or (iii) by payment of such other lawful consideration as the Board may determine; or 
 
(4) by any combination of the above permitted forms of
payment. 
 
(f) Deferral. Any Participant
who is a participant in a deferred compensation plan established by the Company may elect with the permission of the Board and in accordance with rules established by the Board to defer the receipt of any shares of Common Stock issuable upon the
exercise of an Option provided that such election is irrevocable and made at least that number of days prior to the exercise of the Option which shall be determined by the Board. The Participant’s account under such deferred compensation plan
shall be credited with a number of stock units equal to the number of shares so deferred. 
 

	6.	 	Restricted Stock 

 
(a) Grants. The Board may grant Awards entitling recipients to acquire shares of Common Stock, subject to the right of the Company
to repurchase all or part 
 

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of such shares at their issue
price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the recipient in the event that conditions specified by the Board in the applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Board for such Award (each, a “Restricted Stock Award”). 
 
(b) Terms and Conditions. The Board shall determine the terms and conditions of any such Restricted Stock Award, including the
conditions for repurchase (or forfeiture) and the issue price, if any. Any stock certificates issued in respect of a Restricted Stock Award shall be registered in the name of the Participant and, unless otherwise determined by the Board, deposited
by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). At the expiration of the applicable restriction periods, the Company (or such designee) shall deliver the certificates no longer subject to such
restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a manner determined by the Board, by a Participant to receive amounts due or exercise rights of the Participant in the event of the Participant’s
death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, Designated Beneficiary shall mean the Participant’s estate. 
 

	7.	 	Other Stock-Based Awards 

 
The Board shall have the right to grant other Awards based upon the Common Stock having such terms and conditions as the Board may
determine, including the grant of shares based upon certain conditions, the grant of securities convertible into Common Stock and the grant of stock appreciation rights. 
 

	8.	 	Adjustments for Changes in Common Stock and Certain Other Events 

 
(a) Changes in Capitalization. In the event of any stock split, reverse stock split, stock dividend,
recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any distribution to holders of Common Stock other than a normal cash dividend, (i) the number and class of
securities available under this Plan, (ii) the number and class of securities and exercise price per share subject to each outstanding Option, (iii) the repurchase price per share subject to each outstanding Restricted Stock Award, and (iv) the
terms of each other outstanding Award shall be appropriately adjusted by the Company (or substituted Awards may be made, if applicable) to the extent the Board shall determine, in good faith, that such an adjustment (or substitution) is necessary
and appropriate. If this Section 8(a) applies and Section 8(b) also applies to any event, Section 8(b) shall be applicable to such event, and this Section 8(a) shall not be applicable. 
 

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(b)
Acquisition Events 
 
(1) Consequences of
Acquisition Events. Upon the occurrence of an Acquisition Event (as defined below), or the execution by the Company of any agreement with respect to an Acquisition Event, the Board shall take any one or more of the following actions with respect
to then outstanding Awards: (i) provide that outstanding Options shall be assumed, or equivalent Options shall be substituted, by the acquiring or succeeding entity (or an affiliate thereof); (ii) upon written notice to the Participants, provide
that all then unexercised Options will become exercisable in full and will terminate immediately prior to the consummation of such Acquisition Event, except to the extent exercised by the Participants within a specified period following the date of
such notice; (iii) in the event of an Acquisition Event under the terms of which holders of Common Stock will receive upon consummation thereof a cash payment for each share of Common Stock surrendered pursuant to such Acquisition Event (the
“Acquisition Price”), provide that all outstanding Options shall terminate upon consummation of the Acquisition Event and that Participants shall receive, in exchange therefor, a cash payment equal to the amount (if any) by which (A) the
Acquisition Price multiplied by the number of shares of Common Stock subject to such outstanding Options (whether or not then exercisable), exceeds (B) the aggregate exercise price of such Options; (iv) provide that all Restricted Stock Awards then
outstanding shall become free of all restrictions prior to the consummation of the Acquisition Event; and (v) provide that any other stock-based Awards outstanding (A) shall become exercisable, realizable or vested in full, or shall be free of all
conditions or restrictions, as applicable to each such Award, prior to the consummation of the Acquisition Event, or (B) shall be assumed, or equivalent Awards shall be substituted, by the acquiring or succeeding entity (or an affiliate thereof).

 
An “Acquisition Event” shall mean: (a)
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; (b) any sale of all or substantially all of the
assets of the Company; (c) the complete liquidation of the Company; or (d) the acquisition of “beneficial ownership” (as defined in Rule 13d-3 under 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 
 

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plan of the Company, or any entity owned directly or indirectly by the stockholders of the Company in
substantially the same proportion as their ownership of stock of the Company. 
 
(2) Assumption of Awards Upon Certain Events. The Board may grant Awards under the Plan in substitution for stock and stock-based awards held by employees of another entity who become employees
of the Company as a result of a merger or consolidation of the employing entity with the Company or the acquisition by the Company of property or stock of the employing entity. The substitute Awards shall be granted on such terms and conditions as
the Board considers appropriate in the circumstances. 
 

	9.	 	General Provisions Applicable to Awards 

 
(a) Transferability of Awards. Except as the Board may otherwise determine or provide in an Award, Awards shall not be sold,
assigned, transferred, pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the life of the Participant, shall be
exercisable only by the Participant. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees. 
 
(b) Documentation. Each Award shall be evidenced by a written instrument in such form as the Board shall determine, it being
understood that an electronic form of Award shall be deemed to be a written instrument for purposes of the Plan. Each Award may contain terms and conditions in addition to those set forth in the Plan. 
 
(c) Board Discretion. Except as otherwise provided by
the Plan, each Award may be made alone or in addition or in relation to any other Award. The terms of each Award need not be identical, and the Board need not treat Participants uniformly. 
 
(d) Termination of Status. The Board shall determine the effect on an Award of the disability, death,
retirement, authorized leave of absence or other change in the employment or other status of a Participant and the extent to which, and the period during which, the Participant, the Participant’s legal representative, conservator, guardian or
Designated Beneficiary may exercise rights under the Award. 
 
(e) Withholding. Each Participant shall pay to the Company, or make provision satisfactory to the Board for payment of, any taxes required by law to be withheld in connection with Awards to such Participant no later than the
date of the event creating the tax liability. Except as the Board may otherwise provide in an 

 

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Award, when the Common Stock is registered under the Exchange Act, Participants may, to the extent then permitted under applicable law,
satisfy such tax obligations in whole or in part by delivery of shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value. The Company may, to the extent permitted by law, deduct
any such tax obligations from any payment of any kind otherwise due to a Participant. 
 
(f) Amendment of Award. The Board may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another Award of the same or a different type and
changing the date of exercise or realization, provided that the Participant’s consent to such action shall be required unless the Board determines that the action, taking into account any related action, would not materially and adversely
affect the Participant. Without intending to limit the generality of the preceding sentence, the Board may, without amending the Plan, modify Awards granted to Participants who are foreign nationals or employed outside the United States to recognize
differences in laws, rules, regulations or customers of such foreign jurisdiction with respect to tax, securities, currency, employee benefits or other matters. 
 
(g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common
Stock pursuant to the Plan or to remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s
counsel, all other legal matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and any applicable stock exchange or stock market rules and regulations, and (iii) the
Participant has executed and delivered to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations. 
 
(h) Acceleration. The Board may at any time provide
that any Options shall become immediately exercisable in full or in part, that any Restricted Stock Awards shall be free of restrictions in full or in part or that any other Awards may become exercisable in full or in part or free of some or all
restrictions or conditions, or otherwise realizable in full or in part, as the case may be. 
 

	10.	 	Miscellaneous 

 
(a) No Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of an
Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time 
 

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to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim
under the Plan, except as expressly provided in the applicable Award. 
 
(b) No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be
distributed with respect to an Award until becoming the record holder of such shares. Notwithstanding the foregoing, in the event the Company effects a split of the Common Stock by means of a stock dividend and the exercise price of and the number
of shares subject to such Option are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), then a Participant who exercises an Option between the record date and the distribution date for
such stock dividend shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise, notwithstanding the fact that such shares were not outstanding as of the
close of business on the record date for such stock dividend. 
 
(c) Effective Date and Term of Plan. The Plan is effective as of December 10, 1999 the date on which it was adopted by the Board (the “Effective Date”). No Awards shall be granted under the Plan after the completion
of ten years from the Effective Date, but Awards previously granted may extend beyond that date. 
 
(d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time. 
 
(e) Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by and
interpreted in accordance with the laws of the State of Maryland, without regard to any applicable conflicts of law. 
 
Adopted by the Board of Directors on 
December 10, 1999 
 

-8- 

 
AMENDMENT
NO. 1 
TO THE 
1999 NON-OFFICER EMPLOYEE STOCK INCENTIVE PLAN 
OF 
ENTRUST, INC. 
 
The 1999 Non-Officer Employee Stock Incentive Plan (the “Plan”) of Entrust, Inc. is hereby amended as follows (all capitalized
terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Plan): 
 

	1.	 	The first sentence of Section 4(a) of the Plan shall be deleted in its entirety and replaced with the following: 

 
“Subject to adjustment under Section 8,
Awards may be made under the Plan for up to 7,600,000 shares of common stock, $.01 par value per share, of the Company (the “Common Stock”). 
 

	2.	 	Except as aforesaid, the Plan shall remain in full force and effect. 

 
Adopted by the Board of Directors on 
December 1, 2000 
 

-9- 

 
AMENDMENT
NO. 2 
TO THE 
1999 NON-OFFICER EMPLOYEE STOCK INCENTIVE PLAN 
OF 
ENTRUST, INC. 
 
The 1999 Non-Officer Employee Stock Incentive Plan, as amended (the “Plan”), of Entrust, Inc. is hereby further amended as
follows (all capitalized terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Plan): 
 

	1.	 	The first sentence of Section 4(a) of the Plan shall be deleted in its entirety and replaced with the following: 

 
“Subject to adjustment under Section 8,
Awards may be made under the Plan for up to 9,600,000 shares of common stock, $.01 par value per share, of the Company (the “Common Stock”). 
 

	2.	 	Except as aforesaid, the Plan shall remain in full force and effect. 

 
Adopted by the Board of Directors on 
April 26, 2001 
 

-10- 

 
AMENDMENT
NO. 3 
TO THE 
1999 NON-OFFICER EMPLOYEE STOCK INCENTIVE PLAN 
OF 
ENTRUST, INC. 
 
The 1999 Non-Officer Employee Stock Incentive Plan, as amended (the “Plan”), of Entrust, Inc. is hereby further amended as
follows (all capitalized terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Plan): 
 

	1.	 	The first sentence of Section 4(a) of the Plan shall be deleted in its entirety and replaced with the following: 

 
“Subject to adjustment under Section 8,
Awards may be made under the Plan for up to 11,600,000 shares of common stock, $.01 par value per share, of the Company (the “Common Stock”).” 
 

	2.	 	Except as aforesaid, the Plan shall remain in full force and effect. 

 
Adopted by the Board of Directors on 
October 25, 2002 
 
 

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