Document:

December 2, 2004

 

 

 

 

November 1, 2007

 

Mr. Sam Morcos

27 Chesswood Crt.

Ottawa, Ontario

K2E 7E3

 

Dear Sam:

This will confirm our discussion of earlier today ("Notice Date") in which it was agreed that your employment with Entrust Limited will terminate on October 31, 2008 (the "Termination Date").  This letter is also intended to describe the arrangements we have made with respect to your separation from Entrust Limited ("Entrust"), conditional upon your execution of the Release Agreement as described in section C. below.

 
A.SEPARATION BENEFITS

Active Employment.  You will remain an employee of Entrust through to the Termination Date with your duties to be to provide sales management in your current territories and assist in the transition of your existing direct reports to new supervisors.  However, after December 31, 2007, upon mutual agreement between Entrust and You, your active employment may end some date earlier than the Termination Date. ("Active End Date").After the Active End Date, you will have no work duties but you will be entitled to salary continuation until the Termination Date.

After the Termination Date your employment relationship with Entrust will be ended and will not resume.

2.Continued Salary.  You will receive your current salary until the Termination Date payable on the regular payroll dates.   Following the End Date (as defined herein), you will be issued a Record of Employment with your final pay.  All payments made to you will be subject to such statutory deductions and remittances as may be required by law.

3.Sales Incentive.  Your sales incentive target will remain at US$180,000.00 annual target.  Your sales incentive accrual will terminate on October 31, 2007 with a sixty (60) day wind down period in accordance with the Sales Incentive Plan provided to you on October 16, 2007.

4.Continued Benefits.  Entrust will maintain you on its benefit plans until the Active End Date.  For greater certainty, all benefits including short and long-term disability and life insurance will cease on the Active End Date.  You are advised to seek alternative coverage for short and long-term disability and life insurance.  You may be eligible to convert your group life coverage to an individual policy without proof of good health.  Please contact Manager of Human Resources for Canada for more information in this regard.

5.Continued Vesting of Equity.  If you have received one or more options to purchase stock of Entrust, Inc., restricted stock units and/or stock appreciation rights (collectively, "Company Equity"), your rights with respect to Company Equity granted on or before the Notice Date will continue to vest and be eligible for accelerated vesting in the event of an acquisition event until the Termination Date, at the rate and in the manner prescribed by your applicable Company Equity award agreement(s), the governing Company Equity incentive plan, and applicable board resolutions thereunder.  However, if at any time after the Active End Date, (i) Entrust pays to you in lump sum the remaining amount owed to You for salary continuation, and (ii) releases you from further compliance with the Code of Conduct, then the Company Equity will cease to vest and be eligible for accelerated vesting in the event of an acquisition event on the date of delivery of the lump sum payment.  The "End Date" shall be the earlier of (i) the date of delivery of the lump sum, and release from the code of conduct or (ii) the Termination Date.

You will have the right to exercise vested Company Equity until the end of a period of ninety (90) days following the End Date, as prescribed by such award agreement(s), incentive plan(s), and board resolutions.  Any unvested Company Equity as of the End Date shall be forfeited, and any vested and unexercised Company Equity as at the end of a ninety (90) day period following the End Date shall also be forfeited.

6.Continued Accrual of Vacation.  Your vacation will continue to accrue until the End Date.  You agree to take any and all accrued vacation prior to the End Date.

7.Expenses Accruing through to Notice Date.  You will receive reimbursement for any expenses incurred in connection with Entrust's business through to the Active End Date, provided that such expenses were incurred in accordance with Entrust's expense policies.  Please reconcile and settle these expenses within one month of the Active End Date. 

8.References.  Entrust appreciates your past contribution as an employee and is prepared to provide you with appropriate references, depending on circumstances, in order to aid you in returning to new and rewarding employment.  However, to ensure the propriety and accuracy of all information conveyed to third parties with respect to your employment at Entrust, all inquiries or requests for information or references should be directed to the undersigned. 

B.YOUR CONTINUING OBLIGATIONS

You are reminded of the promises and obligations in the Executive Confidentiality, Non-Solicitation, Intellectual Property Rights and Code of Conduct Agreement (the "code of Conduct Agreement") and Conflict of Interest Agreement(s) executed by you on or about your start date, which survive termination of your employment.  

If at any time prior to the Termination Date, Entrust reasonably believes that you have violated the terms of the Code of Conduct Agreement, Entrust may halt any further payments of salary and benefit thereafter.

After the Active End Date, you are reminded to please return as soon as possible to Entrust all property of Entrust currently in your possession and/or subject to your control including but not necessarily limited to any and all computer equipment, computer data files, portable telephone, facsimile machine, credit cards, identification cards, files, memoranda, correspondence, compensation surveys, drawings, designs, financial records, customer lists, personnel files, personnel lists or the like, whether such materials shall be written instruments or tapes in electronic and/or recorded format.  

 
C.RELEASE AGREEMENT

Entrust will provide you with the above payments and benefits provided that you sign and return one original copy of the attached Release Agreement within seven (7) days of your receipt of this letter.

We wish you well in your future endeavors.

Sincerely,

/s/ J D  Kendry 

___________________________________

James D. Kendry

Vice President & Chief Governance Officer

I have read and agree to be bound to the terms and conditions of this letter.

/s/ Sam Morcos

____________________________________

Sam Morcos

 

 

/Encl.RELEASE AGREEMENT

RELEASE AGREEMENT

This Release Agreement ("Agreement") is made by and between Entrust Limited and Sam Morcos ("You" or "Your").

RECITALS

 
1.The terms of Your separation from Entrust Limited are set out in the letter from James D. Kendry to You dated November 1, 2007 ("Letter");

2.The parties, and each of them, wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions and demands that You may have against Entrust Limited as defined herein, including, but not limited to, any and all claims arising or in any way related to Employee's employment with, or separation from, the Company;

NOW THEREFORE, in consideration of the promises made herein, the parties hereby agree as follows (effective as of the date that You accept this Agreement in accordance with Section C of the Letter):

COVENANTS

	Definitions

As used in this Agreement, "Entrust" and/or "Company" shall mean Entrust Limited, its parent, and all direct and indirect subsidiaries, affiliates, related and/or associated companies, of Entrust Limited's parent and all successors and assigns of all of the foregoing.  Capitalized words and phrases defined in the Letter and used in this Agreement shall have the meaning set out in the Letter.  

2.Reaffirmation of Your Duty of Confidence to the Company

	You hereby recognize and reaffirm the promises and obligations in the Intellectual Property and Confidentiality Agreement executed by You on or about Your start date.
	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 (including information provided to Company in confidence by third parties) which information is not in the public domain.  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.

 

3.Non-Disparagement

You agree not to reveal, disclose, use, or to cause to be revealed, disclosed, or used, or to assist in the revelation, disclosure or use of, any such information or material, or any other matter with respect to Entrust, which is injurious or harmful to any of the Company's interests, or the interest of any of its employees, officers or directors.  Specifically, You shall issue no public statement on the business affairs, policies or the like of Entrust without the prior written consent of Entrust.  Each Party also agrees not to defame, disparage, libel or slander the other Party.

4.Release

Except for any obligations incurred under this Agreement You wholly release Entrust, its officers, directors, agents and employees from all actions, causes of actions, complaints, demands and claims in existence prior to, on, or after the date hereof, directly or indirectly arising from Your employment with Entrust and/or the termination thereof.  More particularly, You wholly release Entrust from claims for damages for wrongful dismissal at common law as well as all claims for non-salary benefits, vacation pay, bonuses, commissions, stock options, related employment expenses, and all claims under the Employment Standards Act, R.S.O. 1990, as amended, the Ontario Human Rights Code, and any other applicable legislation, whether arising before, on, or after the date hereof. Entrust releases you from any and all claims, causes of action, losses, obligations, liabilities, damages, judgments, costs, expenses (including attorney's fees) which arise out of actions taken by you while employed by the Company and for which you were acting in good faith, and for which you had no reasonable cause to believe the conduct was unlawful, improper, illegal or fraudulent, including, but not limited to, claims under federal, provincial or local law, constitution, statute, ordinance, or regulation. 

5.Further Assistance

Upon such reasonable request, and on such terms as shall be mutually agreed by You and the Company, You shall make yourself available to provide to Entrust advice, assistance and information related to Your former job duties with the Company, including but not limited to offering and explaining evidence and providing sworn statement(s), deposition testimony and trial testimony as may be deemed necessary by Entrust for the preparation of its position in any legal proceeding(s) involving issues brought against or initiated by Entrust of which You have knowledge.

In the event that it is necessary for You to provide the aforementioned services, Entrust shall reimburse You for authorized reasonable and documented travel expenses including but not limited to transportation, lodging, meals and incidental expenses.

6.Entire Agreement

This Agreement, together with the Letter, constitutes the entire agreement and understanding between You and Entrust concerning Your separation from, and compensation by, Entrust and supersedes and replaces any and all prior and contemporaneous agreements, representations and understandings regarding said subjects.  This Agreement is executed without reliance on any promise, warranty or representations by any party or any representative of any party other than those expressly contained in this Agreement.

7.Amendments

Any modification or amendment of this Agreement, or additional obligation assumed by either party in connection with this Agreement, shall be effective only if placed in writing and signed by authorized representatives of each party.  No provision of this Agreement can be changed, altered, modified, or waived except by an executed writing by the parties.

8.Governing Law

This Agreement and the performance hereunder shall be governed by and interpreted in accordance with the law of the Province of Ontario, excluding its provisions on conflict of laws.  The venue for any disputes in respect to this Agreement or Your employment with Entrust shall be Ottawa, Ontario.

9.Severability

If any provision of this Agreement is held to be illegal, invalid or unenforceable by any competent authority, such illegality, invalidity or unenforceability shall not in any manner affect or render illegal, invalid or unenforceable any other provision of this Agreement.

10.Binding

This Agreement shall be binding on the successors, heirs, assigns and legal representatives of the parties hereto.

11.Acknowledgment

You acknowledge having had the opportunity to obtain independent legal advice before executing this Agreement and acknowledge that You fully understand the nature of the Agreement that You are voluntarily entering into.

 

IN WITNESS WHEREOF THE COMPANY HAS DULY EXECUTED THIS AGREEMENT:

 

ENTRUST:

 

/s/ J D  Kendry

_____________________________

James D. Kendry

 

 

IN WITNESS WHEREOF YOU HAVE DULY EXECUTED THIS AGREEMENT:

 

	
/s/ Joseph Wong

Witness
	
/s/ Sam Morcos

SAM MORCOS

	

Joseph Wong

Printed Name
	

November 2, 2007

Date

	

November 2, 2007

Date

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