Document:

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                                                                EXHIBIT 10(r)(s)

EMPLOYMENT AGREEMENT between Rainbow Technologies, Inc., a Delaware corporation
(the "Corporation"), and Jim Kopycki (the "Executive"), dated this first day of
April 2000.

                              W I T N E S S E T H :

         WHEREAS, the Corporation desires to engage Executive to perform
services for the Corporation, and the Executive desires to perform such
services, on the terms and conditions herein set forth.

         NOW THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is hereby agreed by and between the Corporation and the
Executive as follows:

         1. TERM. The Corporation agrees to employ Executive, and Executive
agrees to serve, on the terms and conditions stated herein for a period
commencing July 1,2000 and terminating December 31, 2000 or such shorter period
as provided for herein. The period during which Executive is employed hereunder
is hereinafter referred to as the "Term." The Term shall be automatically
renewed for successive one-year periods thereafter, unless terminated pursuant
to the provisions of this Employment Agreement (the "Agreement"). The period
during which Executive is employed hereunder is hereinafter referred to as the
"Term."

         2. POSITION AND DUTIES. The Executive shall be employed in the business
            of the Corporation. As of the date of this Agreement, Executive's
            duties include those duties Executive is currently performing as
            President, Mykotronx Subsidiary of the Corporation. Notwithstanding
            the duties as described above, Executive agrees that his duties may
            be, from time to time, revised or modified by the Chief Operating
            Officer and/or President of the Corporation. The Executive agrees to
            devote his full business time during normal business hours to the
            business and affairs of the Corporation and to use his best efforts
            to perform faithfully and efficiently the assigned responsibilities
            hereunder.

         3. COMPENSATION AND BENEFITS.

         6.4  BASE SALARY. The Corporation will pay Executive a base salary
            ("Base Salary") of $3317.30 per week which will be paid in
            accordance with the payroll practices of the Corporation.

         6.5  ANNUAL BONUS. In addition to Base Salary, the Executive shall have
            an opportunity to earn a year 2000 management bonus ("Year 2000
            Management Bonus"), in cash, as established by the Board. The Year
            2000 Management Bonus shall be $90,000.00 payable no later than 60
            days subsequent to the end of the Corporation's fiscal year.

         3.3  INCENTIVE, RETIREMENT AND SAVINGS PLAN. In addition to the Base
Salary and Annual Bonus, the Executive shall be entitled to participate in all
incentive, retirement and savings plans and programs ("Incentives"), if any, and
as established by the Corporation provided Executive meets the eligibility
requirements.

         3.4  BENEFIT PLANS. The Executive and/or Executive's spouse and
dependents, as the case may be, shall be entitled to all benefits under all
medical, dental, vision, disability, executive life, group life, accidental
death and travel accident insurance plans and programs ("Benefit Plans"), if
any, and as established by the Corporation provided the Executive meets the
eligibility requirements.

         3.5  FRINGE BENEFITS. * The Executive and/or Executive's spouse and
dependents, as the case may be, shall be.entitled Ho fringe benefits ("Fringe
Benefits"), if any, and as established by the Corporation provided the Executive
meets the eligibility requirements.

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         3.6  VACATION. The Executive shall be entitled to paid vacation in
accordance with the policies established from time to time by the Corporation.

         4. EXPENSES. The Executive shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred or expended by the Executive
in fulfillment of the duties hereunder. Executive shall provide documentation of
such expenses in accordance with the procedures established from time to time by
the Corporation.

         5. TERMINATION.

         5.1  DEATH. The Executive's employment shall terminate automatically
upon the Executive's death ("Death").

         5.2  DISABILITY. The Corporation may terminate the Executive's
employment, after having established the Executive's "Disability" (as defined
below), by giving to the Executive notice of its intention to terminate
Executive's employment effective on the 90th day after such notice (the
"Disability Effective Date") if within such 90-day period the Executive fails to
return to full-time performance of his duties. For purposes of this Agreement,
"Disability" means a disability which, after the expiration of more than 26
weeks after its commencement, is determined to be total and permanent by a
physician selected by the Corporation or the insurers providing disability
insurance to the Company and consented to by the Executive or Executive's legal
representative (such consent not to be withheld unreasonably).

         5.3  CAUSE. The Corporation may terminate the Executive's employment
for Cause ("Cause"). For purposes of this Agreement, "Cause" means (i) an act or
acts of dishonesty on the Executive's part which result in or are intended to
result in Executive's substantial personal enrichment at the expense of the
Corporation or (ii) repeated violations by the Executive of Executive's
obligations under Article 2 of this Agreement, which violations are demonstrably
willful and deliberate on the Executive's part and which were intended to result
in or have resulted in material injury to the Corporation.

         5.4  WITHOUT CAUSE. The "President or the Chief Operating Officer may
terminate the Executive's employment without cause ("Without Cause") upon 60
days notice.

         5.5  RESIGNATION. At any time after the effective date of the
Agreement, the Executive may terminate his employment by electing resignation
("Voluntary Resignation").

         5.6  CHANGE OF CONTROL. In the event of a Change of Control, this
Agreement shall automatically terminate, and a separate Change of Control
Agreement shall become effective. For purposes of this Agreement, "Change of
Control" shall be deemed to have occurred if (i) a third person, including a
"group" as defined in Article 13(d)(3) of the Securities Exchange Act of 1934,
becomes the beneficial owner of shares of the Corporation having a 35% or more
of the total number of votes that may be cast for the election of directors as
the result of, or in connection with, any cash tender or exchange offer, merger
of other business combination (a "Transaction") and (ii) results in the persons
who were members of the Board before the Transaction ceasing to constitute a
majority of the Board or of the members of the board of directors of any
successor to the Corporation.

         5.7  NOTICE OF TERMINATION. Any termination by the Corporation shall be
communicated by Notice of Termination to the other party hereto given in
accordance with Article 11. For purposes of this Agreement, a "Notice of
Termination" means a written notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) sets forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Executive's employment under the provision so indicated and (iii) if the
termination date is other than the date of receipt of such notice, specifies the
termination date of this Agreement which date shall be in accordance with the
specific termination provision in this Agreement relied upon.

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         5.9  DATE OF TERMINATION. Notwithstanding any contrary provision
contained in this Agreement, (i) if the Executive is terminating this Agreement
in order to elect Voluntary Resignation, the Date of Termination shall not be
the date of receipt of such Notice of Termination but shall be a date specified
therein, which date shall be neither less than 60 days nor greater than 90 days
after giving such Notice of Termination; (ii) if the Executive's employment is
terminating due to Disability, the Date of Termination shall be the Disability
Effective Date; (iii) if the Executive's employment terminates due to the
Executive's death, the Date of Termination shall be the date of death; and (iv)
if the Executive's employment is terminated Without Cause, the Date of
Termination shall not be the date of receipt of such Notice of Termination but
shall be a date specified therein, which date shall be not less than 60 days
after giving such Notice of Termination.

         6. OBLIGATIONS OF THE CORPORATION UPON TERMINATION.

         6.1  DEATH. If the Executive's employment is terminated by reason of
the Executive's death, except as described in the next sentence, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement other than those obligations accrued
hereunder at the date of Executive's death. Anything in this Agreement to the
contrary notwithstanding, the Executive's spouse and dependents shall be
entitled to continue to receive the benefits under Benefit Plans and Fringe
Benefits through the Term of this agreement.

         6.2  CAUSE. If the Executive's employment shall be terminated for
Cause, the Corporation shall pay the Executive his Base Salary and any other
accrued obligations through the Date of Termination. The Corporation shall have
no further obligations to the Executive under this Agreement.

         6.3  VOLUNTARY RESIGNATION. The Corporation shall have no further
obligation to the Executive under this Agreement. If the Executive elects
Voluntary Resignation, the Corporation shall pay the Executive his Base Salary
and any other accrued obligations through the Date of Termination.

         6.4  WITHOUT CAUSE AND DISABILITY. If the Corporation shall terminate
the Executive's employment either Without Cause or for Disability;

                  6.4.1 PAYMENTS. The Corporation shall pay to the Executive the
aggregate of the amounts determined pursuant to Articles 6.4.1 (i) and
6.4.1(ii):

                  (i) if not already paid, the Executive's Base Salary and
accrued obligations through the Date of Termination, to be paid within 30 days
after the Date of Termination;

                  (ii) 100% of the Executive's "Base Amount." Base Amount is the
aggregate of the Executive's Base Salary and Annual Bonus paid or due to
Executive in the fiscal year prior to the year in which termination occurred.
Said 100% of the Base Amount shall be paid to the Executive in 12 equal monthly
installments commencing within 30 days after the Date of Termination.

                  6.4.2 STOCK OPTIONS. All stock options and stock appreciation
rights, if any, granted to the Executive which are not exercisable at the Date
of Termination, shall become fully exercisable as of the Date of Termination.

                  6.4.3 BENEFITS. For 12 months subsequent to the Date of
Termination, the Corporation shall continue Benefit Plans and Fringe Benefits to
the Executive and/or Executive's spouse and dependents. For COBRA purposes, the
Date of Termination will be the qualifying event and the Corporation will pay 12
months of insurance premiums

         6.5  CHANGE OF CONTROL. Notwithstanding anything in this Agreement to
the contrary, if the Executive's employment shall be terminated due to a Change
of Control, the Corporation shall have no further obligation to the Executive
under this Agreement.

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         7. FULL SETTLEMENT. The Corporation's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right which
the Corporation may have against the Executive or others.

         8. CONFIDENTIAL INFORMATION. The Executive shall hold in a fiduciary
capacity for the benefit of the Corporation all secret or confidential
information, knowledge or data relating to the Corporation or any of its
affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during his employment by the Corporation or any of its
affiliated companies and which shall not be public knowledge. After termination
of the Executive's employment with the Corporation, he shall not, without the
prior written consent of the Corporation, communicate or divulge any such
information, knowledge or data to anyone other than the Corporation and those
designated by it.

         9. COVENANT NOT TO COMPETE. In view of the fulfillment of Executive's
obligations hereunder and (i) the unique and valuable services it is expected
Executive will render to the Corporation, (ii) Executive's knowledge of the
clients, trade secrets, and other proprietary information relating to the
business of the Corporation and its customers and suppliers, and (iii) similar
knowledge Executive has regarding the Corporation, and in consideration of the
compensation to be received hereunder and as a condition to the performance by
Corporation of its obligations under this Agreement, Executive agrees that if
this Agreement is terminated due to Disability, a Change of Control or for
Without Cause that for the period through December 31, 2000 the Executive shall
not directly or indirectly through any other person, firm or Corporation:

         (i) compete with or be engaged in the same business or "participate" in
any other business or organization which during such period competes with or is
engaged in the same business as the Corporation in any geographical area in
which the Corporation conducts such business. . The term "participate in" shall
mean: "directly or indirectly, for Executive's own benefit or for, with, or
through any other person, firm, or corporation, own,-manage, operate, control,
loan money to, or participate in the ownership, management, operation, or
control of, or be connected as a director, officer, employee, partner,
consultant, agent, independent contractor, or otherwise with, or acquiesce in
the use of Executive's name. Executive will not directly or indirectly reveal
the name of, solicit or interfere with, or endeavor to entice away from the
Corporation any of its customers or employees. Executive will not directly or
indirectly employ any person who, at any time up to such cessation, was an
employee of the Corporation, within a period of one year after such person
leaves the employ of such Corporation. Executive agrees that the provisions of
this Article 9 are necessary and reasonable to protect the Corporation in the
conduct of its business. If any restriction contained in this Article 9 shall be
deemed to be invalid, illegal, or unenforceable by reason of the extent,
duration, or geographical scope thereof, or otherwise, then the court making
such determination shall have the right to reduce such extent, duration,
geographical scope, or other provisions hereof, and in its reduced form such
restriction shall then be enforceable in the manner contemplated hereby.

         9.1 BREACH. If Executive commits a breach of any of the provisions of
this Article 9, Corporation shall have the right and remedy to have such
provisions specifically enforced by any court having equity jurisdiction. The
foregoing right and remedy shall be in addition to any other remedy (including
without limitation damages) to which Corporation may be entitled.

         10. SUCCESSORS.

         10.1 ASSIGNMENT BY EXECUTIVE. This Agreement is personal to the
Executive and wshall not be assignable by the Executive otherwise than by will
or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive's legal representatives.

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         10.2 ASSIGNMENT BY CORPORATION. Notwithstanding anything in this
Agreement, Executive agrees that this Agreement may be assigned by the
Corporation.

         11. MISCELLANEOUS.

         11.1 MODIFICATIONS. This Agreement sets forth the entire understanding
of the parties with respect to the subject matter hereof. This agreement may be
modified only by a written instrument duly executed by each party.

         11.2 GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of California, without reference to
principles of conflict of laws. This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

         11.3 NOTICE. All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

If to the Executive:
Jim Kopycki
17832 ABERDEEN LN
VILLA PARK, CA 92861

If to the Corporation:
Walter Straub, President
Rainbow Technologies, Inc.
50 Technology
Irvine, CA 92618

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressees.

         11.4 EQUITABLE RELIEF. Since a breach of the provisions of this
Agreement, particularly with respect to Article 9, could not adequately be
compensated by money damages, the Corporation shall be entitled, in addition to
any other right and remedy available to it, to an injunction restraining such
breach or a threatened breach, and in either case no bond or other security
shall be required in connection therewith, and Executive hereby consents to the
issuance of such injunction.

         11.5 RELATIONSHIP OF PARTIES. Except for authority granted to Executive
by the President and/or Chief Operating Officer in order to enable Executive to
fulfill the obligations set forth in this Agreement, nothing contained in this
Agreement shall authorize, empower, or constitute Executive the agent of the
Corporation in any manner; authorize or empower Executive to assume or create
any obligation or responsibility whatsoever, express or implied, on behalf of or
in the name of the Corporation.

         11.6 WAIVER. Any waiver by any party of a breach of any provision of
this Agreement shall not operate as or be construed to be a waiver of any other
breach of such provision or any breach of any other provision of this Agreement.
The failure of a party to insist upon strict adherence to any term of this
Agreement on one or more occasions shall not be a waiver or deprive the party of
the right hereunder to insist upon strict adherence to that term or any other
term of this Agreement. Any waiver must be in writing and signed by the waiving
party.

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         11.7 SEPARABILITY. If any provision of this Agreement is invalid,
illegal, or unenforceable, the balance of this Agreement shall remain in effect,
and if any provision is inapplicable to any person or circumstance, it shall
nevertheless remain applicable to all other persons and circumstances.

         11.8 HEADINGS. The headings in this Agreement are solely for
convenience of reference and shall be given no effect in the construction or
interpretation of this Agreement.

         11.9 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         11.10 WITHHOLDINGS. The Executive agrees that the Corporation shall
withhold from any and all payments required to be made to Executive pursuant to
this Agreement all federal, state, local and/or other taxes or contributions
which the Corporation determines are required to be withheld in accordance with
applicable statutes and/or regulations from time to time in effect provided,
however, that such withholding shall be consistent with the calculations made by
the Corporation.

         IN WITNESS WHEREOF, the Executive has hereunto set his hand and,
pursuant to the authorization from its Board of Directors, the Corporation has
caused these presents to be executed in its name on its behalf all as of the day
and year first above written.

/s/ Jim Kopycki
----------------------------------
Jim Kopycki

ATTEST:

/s/ Walter Straub
---------------------------------
Walter Straub
President
Rainbow Technologies, Inc.<PAGE>

                                                                   EXHIBIT 10(t)

                              CONSULTING AGREEMENT

         CONSULTING AGREEMENT (the "Agreement"), dated Jan 1, 2000, by and
between Rainbow Technologies, Inc., a Delaware corporation, with offices located
at 50 Technology Drive, Irvine, California 92618 (the "Company"), and Abbott
Investments, with offices located at 305 Pinnacle Ridge Place, Calgary, Alberta,
Canada T3W 6W3 ("Consiilting Firm").

         1        Relationship. The Company agrees to hire Consulting Firm to
perform certain services for the Company, and Consulting Firm agrees to assign
Shawn Abbott ("Consultant") to perform such services, on the basis of the terms
and conditions set forth herein. For purposes of this agreement, Consulting Firm
and Consultant are used interchangeably.

         2        Purpose of Agreement. As a condition to, and in consideration
for the relationship formed by this Agreement, Consultant acknowledges that the
confidential information and inventions of Company are trade secrets and
important assets of Company, and agrees to be bound by the terms of this
Agreement.

         3        Services to be Performed. Consultant shall work and consult
with the Company (the "Services") in connection with the identification of areas
of technology and product development that are within the general scope of the
Company's product and service.

         4        Compensation. In consideration for the approximately 170 hours
per month of Services performed by Consultant pursuant to this Agreement, the
Company will pay Consulting Firm a monthly consulting fee in the amount of $US
11,666.67, payable monthly upon the receipt of each invoice. Also, Consultant
will be paid an annual consulting incentive based upon specific goals.
Compensation will be adjusted annually according to the Company's consulting
policies.

         5        Expenses. The Company shall reimburse Consultant or otherwise
provide for or pay for all reasonable expenses incurred by Consultant in
furtherance of or in connection with the business of the Company, including, but
not by way of limitation, (i) all reasonable expenses incurred by Consultant in
accordance with the Company's travel policy, as established by the Board; and
(ii) all reasonable expenses in connection with Consultant's attendance at trade
and professional conferences, which are in furtherance of the business of the
Company. Consultant agrees that he will furnish the Company with adequate
records and other documents for the substantiation of each such business
expense.

         6        Term. The term of this Agreement shall be for a period of one
(1) year commencing upon the execution of this Agreement ("Initial Term"). This
Agreement shall thereafter automatically continue (the "Succeeding Term") until
terminated by either Party in accordance with this Agreement, unless either
Party provides written notice of termination to the other party at least ninety
(90) days prior to the termination date. If Company terminates this agreement
for reasons other than the Consultant's breach of the terms and conditions of
this Agreement, Company will pay Consultant 12 months consulting fees plus the
prior year's consulting incentive ("Termination Fee").

         7        Confidentiality. The information and materials set forth in
Section 7.1, 7.2, 7.3 and 7.4 (collectively referred to as "Confidential
Information"), whether in written, oral, magnetic, photographic, optical or
other form and whether now existing or developed or created during the period of
Consultant's relationship or engagement with Company, excepting information
obtained from general or public sources, are proprietary to Company and are
highly confidential in nature.

                           7.1      Business Records, Marketing Plans and
Customer Information. All books, records, documents, memoranda and materials,
and the information contained therein, relating to the business and finances of
Company including, but not limited to: (i) marketing and development plans,
forecasts, forecast assumptions, forecast volumes, future plans and potential
strategies of Company; (ii) cost objectives, pricing policies and procedures,
quoting policies and procedures, and unpublished price lists; (iii) licensing
policies, strategies and techniques; (iv) customer lists, names of past, present
and prospective customers and their representatives; (v) data and other
information about

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or provided by past, present and prospective vendors; (vii) purchasing
Information, orders, invoices, billings, and payment of billings; (viii) past,
present and prospective licenses and licensees, the terms and conditions of any
licenses or prospective licenses, contracts or prospective contracts; (ix) types
of products, supplies, materials and services purchased, leased, licensed and/or
sold by Company; (x) past, present and future research and development
arrangements; (xi) customer service information; (xii) joint ventures, mergers
and/or acquisitions; (xiii) Company personnel policies and procedures, Company
personnel files, and the compensation of officers, directors and Consultants of
Company; and (xiv) all other confidential business records and trade secrets of
Company.

                           7.2      Technology and Manufacturing Procedures. All
books, records, documents, memoranda and materials, and the information
contained therein, relating to the technology of Company (whether or not
patentable, whether or not protected by copyright, whether developed by or for
the Company) including, but not limited to: (i) technology licensed to Company
by any third party; (ii) ideas and concepts for existing and new products,
processes and services; (iii) specifications for products, equipment and
processes, whether technical or financial; (iv) manufacturing and performance
specifications and procedures; (v) engineering drawings, flow charts, and
graphs; (vi) technical, research and engineering data; (vii) formulations,
materials, and material specifications; (viii) laboratory studies and benchmark
tests; (ix) laboratory notebooks (or equivalent); (x) plant layout and
equipment; (xi) manuals, including service manuals and operation manuals; (xii)
quality assurance policies, procedures and specifications; (xiii) feasibility
and trade secrets related to the research, engineering, development and
manufacturing of Company.

                           7.3      Third Party Information. Any and all other
information and materials in Company's possession or under its control from any
other person or entity which Company is obligated to treat as confidential or
proprietary.

                           7.4      Not Generally Known. Any and all
Confidential Information not generally known to the public or within the
industries or trades in which the Company competes.

         8        General Skills and Knowledge. The general skills and
experience gained by Consultant during Consultant's relationship with Company,
and information publicly available or generally known within the industries or
trades in which Company competes, is not considered Confidential Information.

         9        Consultant's Obligations as to Confidential Information and
Materials. During Consultant's relationship by Company, Consultant may have
access to all or a portion of the Confidential Information and, as such, will
occupy a position of trust and confidence with respect to Company's affairs and
business. Consultant will take the following steps to preserve the confidential
and proprietary nature of the Confidential Information:

                           9.1      Non-Disclosure. During and for a period of
three (3) years after Consultant's relationship with Company, Consultant will
not use, disclose or otherwise permit any person or entity access to any of the
Confidential Information other than as required in the performance of
Consultant's duties with Company. In addition, Consultant will take all
reasonable precautions to prevent disclosure of the Confidential Information.

                           9.2      Prevent Disclosure. Consultant will take all
reasonable precautions to prevent disclosure of the Confidential Information in
accordance with the Company's reasonable instructions to Consultant.

                           9.3      Return All Materials. Upon termination of
Consultant's relationship with Company, for any reason whatsoever, Consultant
will deliver to Company all tangible materials embodying the Confidential
Information, including, without limitation, any documentation, records,
listings, notes, data, sketches, drawings, memoranda, models, accounts,
reference materials, samples, machine-readable media and equipment which in any
way relate to the Confidential Information. Consultant may not retain any copies
or abstracts of any Confidential Information.

         10       Ideas and Inventions. Consultant agrees that all right, title
and interest in or to any and all Inventions are the property of Company. For
the purposes of this Agreement, "Inventions" shall mean all techniques,
processes, methods, inventions, discoveries, developments, innovations and
improvements (i)conceived or made by Consultant, whether alone or with others,
in the course of Consultant's

                                                                               2

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relationship with the Company, or (ii) conceived or made by Consultant, whether
alone or with others, in the course of Consultant's relationship, but which
reach fruition by the second (2nd) anniversary of the termination of
Consultant's relationship, and which either (a) involve or are reasonably
related to the business of the Company or to the Company's actual or planned
research or development; or (b) incorporate or are based on, in whole or in
part, any of the Confidential Information. Consultant agrees to promptly
disclose all Inventions to the Company, and to provide all assistance reasonably
requested by the Company in the preservation of its interests in the Inventions,
such as by executing documents, testifying, etc. Consultant agrees to execute,
acknowledge and deliver any instruments confirming the complete ownership by the
Company of such Inventions. Expenses for such assistance shall be paid by the
Company. Consultant's time for such assistance shall be compensated at the rate,
and subject to the limitations, set forth in Section 4 above. No additional
compensation shall be paid to Consultant for any Ideas or Inventions.

         11       Work for Hire. The Company and Consultant agree that the work
product of Consultant in performance of Services required by this Agreement,
including, without limitation, reports, information, data, documents, marketing
plans, marketing information, brochures, market studies and press materials,
shall be the exclusive property of the Company and shall be deemed a "work for
hire." No work product of Consultant shall be deemed to fall within any other
classification which would result in ownership rights of any description
concerning such materials vesting in Consultant. In the event any ownership
rights in Consultant's work product are deemed to vest in Consultant, Consultant
hereby assigns all such rights to the Company. Consultant agrees that any
materials produced by Consultant in the course of performing Services under this
Agreement shall not be the subject of an application for copyright, perfection
of copyright or patent by or on behalf of Consultant and that Consultant shall
cooperate with the Company in any application for copyright or patent it deems
appropriate concerning any materials produced pursuant to this Agreement.

         12       Restrictive Covenants.

                           12.1     Consultant acknowledges that (i) the
Company's business is all aspects of designing, manufacturing, marketing,
licensing, maintaining and supporting security related computer equipment and
software products for various needs, including but not limited to the Internet,
corporate networks and communications networks, and consulting services relating
thereto, and (ii) fulfillment of the obligations hereunder will result in
Consultant becoming familiar with the business affairs of the Company and any
present or future parent, subsidiary and/or affiliate.

                           12.2     Covenant Not to Compete. In consideration
for the compensation, and as a condition to the performance by the Company of
all obligations under this Agreement, Consultant agrees that during the Initial
Term or any Succeeding Terms of this Agreement and for the period from the date
of termination of Consultant's employment through the second (2nd) anniversary
of such date, Consultant shall not directly or indirectly through any other
person, firm or corporation compete with or be engaged in the same business or
"participate in" any other business or organization which during such period
competes with or is engaged in the same business as the Company. The term
"participate in" shall mean: "directly or indirectly, for his own benefit or
for, with, or through any other person, firm, or corporation, own, manage,
operate, control, loan money to, or participate in the ownership, management,
operation, or control of, or be connected as a director, officer, employee,
partner, consultant, agent, independent contractor, or otherwise with, or
acquiesce in the use of his name." Notwithstanding the foregoing, it shall not
be a breach of the provisions of this Section 12 if, after the term of this
Agreement, Consultant is a passive investor in any publicly held entity and
Consultant owns three (3%) percent or less of the equity interests therein.

                           12.3     Solicitation of Employees. Consultant agrees
that during the Initial Term, and all Succeeding Terms, and for a period of one
(1) year thereafter, Consultant shall not induce or influence, or seek thereto,
any person who is engaged as an employee, agent, consultant or otherwise of the
Company to terminate his or her engagement or employment with the Company or to
engage or otherwise participate in a business activity, directly or indirectly,
competing with the business of the Company.

                           12.4     Restrictive Covenants Necessary and
Reasonable. Consultant agrees that

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the provisions of this Section 12 are necessary and reasonable to protect the
Company in the conduct of its business. If any restriction contained in this
Section 12 shall be deemed to be invalid, illegal, or unenforceable by reason of
the extent, duration or geographical scope thereof, or otherwise, then the court
making such determination shall have the right to reduce such extent, duration,
geographical scope, or other provisions hereof and in its reduced form such
restriction shall then be enforceable in the manner contemplated hereby.

         13       Independent Contractor Status. It is specifically agreed and
understood that in performing the services herein, Consultant is acting as an
independent contractor and not as an employee of the Company. Furthermore,
nothing contained in this Agreement shall be construed to create the
relationship of partnership, joint venture or any other relationship between the
parties hereto other than the relationship of independent contractor.

         14       Taxes. Consultant shall be solely liable for any and all
applicable taxes, including but not limited to sales, use, gross receipts,
value-added, excise, property or income, and penalties, levied or imposed, by
any federal, national, state, provincial or local governments, or any
subdivision of the foregoing related to this Agreement.

         15       Indemnification. Consultant shall indemnify, defend and hold
harmless the Company with respect to any claim, debt or liability to the extent
that it is associated with any Canadian tax liability arising from this
Agreement including, but not limited to, sales tax, excise tax, payroll taxes,
El, CCP income tax and GST.

         16       Injunctive Relief. Consultant, recognizing that irreparable
injury shall result to Company in the event of Consultant's breach of the terms
and conditions of this Agreement, agrees that in the event of his breach or
threatened breach, Company shall be entitled to injunctive relief restraining
Consultant, and any and all persons or entities acting for or with Consultant,
from such breach or threatened breach. Nothing herein contained, however, shall
be construed as prohibiting Company from pursuing any other remedies available
to it by reason of such breach or threatened breach.

         17       Assignment. This Agreement is for the personal services of
Consultant only, and not for any other individual or entity. As such, this
Agreement is not assignable by Consultant under any circumstances and Consultant
hereby agrees that this restriction is reasonable in view of the services
performed by him. Consultant agrees that the Company may assign this Agreement.
If this assignment is the result of a merger of other business combination, the
Termination Fee will increase by 50%.

         18       Miscellaneous.

                           18.1     Notices. Any and all notices, demands,
requests or other communication required or permitted by this Agreement or by
law to be served on, given to, or delivered to any Party hereto by any other
Party to this Agreement shall be in writing and shall be deemed duly served,
given, or delivered when personally delivered to the Party to be notified, or in
lieu of such personal delivery, when deposited in the mail, registered or
certified mail, return receipt requested, or when confirmed as received if
delivered by overnight courier, addressed to the to the Party to be notified, at
the address of the Company at its principal office, as first set forth above, or
to Consultant at the address as first set forth above. The Company or Consultant
may change the address in the manner required by law for purposes of this
paragraph by giving notice of the change, in the manner required by this
paragraph, to the respective Parties.

                           18.2     Amendment. This Agreement may not be
modified, changed, amended, or altered except in writing signed by Consultant or
his duly authorized representative, and by a, authorized officer of the Company.

                           18.3     Governing Law. This Agreement shall be
interpreted in accordance with the laws of the State of California. It shall
inure to the benefit of and be binding upon the Company, and its successors and
assigns. Consultant expressly consents to the personal jurisdiction of the state
and federal courts located in the State of California, County of Los Angeles for
any claims, suits or actions arising from or related to this Agreement.

                           18.4     Attorney's Fees. Should any litigation or
arbitration be commenced between

                                                                               4

<PAGE>

the Parties to this Agreement concerning any provision of this Agreement, the
expense of all attorneys' fees and other costs incurred in connection therewith
shall be paid by the losing Party.

                           18.5     Severability. Should any provision or
portion of this Agreement be held unenforceable or invalid for any reason, the
remaining provisions and portions of this Agreement shall be unaffected by such
holding.

                           18.6     Entire Agreement. This Agreement constitutes
the sole and only agreement of the Parties hereto respecting the subject matter
hereof. Any prior agreements, promises, negotiations, or representations
concerning its subject matter not expressly set forth in this Agreement, are of
no force and effect.

                           18.7     Counterparts. This Agreement and any
certificates made pursuant hereto, may be executed in any number of counterparts
and when so executed all of such counterparts shall constitute a single
instrument binding upon all Parties hereto notwithstanding the fact that all
Parties are not signatory to the original or to the same counterpart.

                           18.8     Section Headings. The Article and Section
headings used in this Agreement are for reference purposes only, and should not
be used in construing this Agreement.

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date set forth above.

         RAINBOW TECHNOLOGIES, INC.

By: /s/ Walter Straub                             /s/ Abbott Investments
    ---------------------------                   -------------------------
    Walter Straub                                 Abbott Investments
    Chief Executive Officer

                                                  /s/ Shawn Abbott
                                                  -------------------------
                                                  Shawn Abbott

                                                                               5

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