ATS Quota/Compensation Plan

1. ATS Quota/Compensation Plan Q3 2003 v2

2. Field Comp program for ATS products Objective: To incrementally engage and focus on ATS products while maintaining momentum, activity and bookings/revenue activity on McAfee and Sniffer traditional markets.

3. Field Comp program for ATS products Two stage comp model • Quota assigned to AVP’s and RD’s • Sniffer receives Intruvert quota/bookings • McAfee receives Entercept quota/bookings • Reps will not carry incremental quota, but will get paid via spiff • This ensures Sniffer/McAffe reps maintain focus and momentum on main product, while they incrementally engage in ATS

4. Compensation Plan Changes- AVP • Current comp plan-60% base/ 40% variable • 40% variable components: • 60% Commissions • 25% Company Performance/Revenue • 15% Profitability/Contribution Margin

5. Compensation Plan Changes- AVP • Proposed comp plan- 60%base/40% variable • 40% variable components: • 60% Commissions- Bookings • 10% ATS - Bookings** • 20% Revenue • 10% Contribution Margin/Expenses • **In order to receive the 10% ATS portion AVP’s must be at 70% attainment against their ATS quota

6. Compensation Plan Scenarios • Proposed comp plan- 60%base/40% variable • 40% variable components: • 60% Commissions- Bookings • 10% ATS - Bookings** • 20% Revenue • 10% Contribution Margin/Expenses • **In order to receive the 10% ATS portion AVP’s must be at 70% attainment against their ATS quota

7. Compensation Plan Changes- RD • Current Plan- 50% base/50% Variable • 50% variable components • 80% Commissions • 20% YTD Quarterly Consistency Bonus

8. Compensation Plan Changes- RD • Proposed plan- 50% base/50% Variable • 50% variable components • 80% Commissions - Bookings • 10% ATS - Bookings** • 10% YTD Consistency Bonus • **In order to receive the 10% ATS portion RD’s must be at 70% attainment against their ATS quota

9. Rep SPIFF - Sniffer/McAfee Reps • McAfee rep- $75 per HostIPs (Entercept) new license sold • Spiff inclusive of maintenance • McAfee reps spiffed on eligible Entercept sales (not Entercept renewal) • One McAfee rep spiffed per Entercept deal • In case of multiple sales reps involvement spiff will be split • Scenario: McAfee rep assists in an Entercept deal (introduction, meeting, lead, etc). • Entercept customer orders 7 HostIP’s (new) with maintenance • McAfee rep will receive $75 X 7= $525

10. Rep SPIFF proposal • Sniffer reps- $250 per Intrushield 1200 • $750 per Intrushield 2600 • $2,000 per Intrushield 4000 • Spiff inclusive of maintenance • Sniffer reps spiffed on eligible NetworkIPs (Intruvert) sales (non Intruvert renewal) • One Sniffer rep will receive the spiff per Intruvert deal • In case of multiple sales reps involvement spiff will be split • Scenario: Sniffer Rep assists an Intruvert rep with Intruvert deal (introduction, meeting, lead, etc). • Customer purchased 2 2600’s and 2 4000’2 with maintenance • Sniffer rep will receive 2 x 750= $1,500 + 2 x 2,000= $4,000.

11. Pros & Cons: • Pros: • Sniffer/McAfee rep will have incentive tied to ATS. This will put empasis on the new product • RD’s will be responsible for driving the ATS business and the McAfee/Sniffer reps will not loose focus on the Sniffer/McAfee products • No “double bubble” confusion or exposure at therep level • Cons: • Manual process to tract ATS quota performance • Need reps to roll up to RD in the commission system • Mid-quarter change in comp plan