Document:

exv10w2

 

Exhibit 10.2

AGREEMENT

          This Agreement is entered into by and between SafeNet, Inc. (“SafeNet”) and Carole Argo
(“Argo”), the President and Chief Operating Officer of SafeNet.

          In consideration of the covenants undertaken and contained herein, the adequacy of which is
herein acknowledged, the parties agree as follows:

          1. In accordance with Section 8(a) of the Employment Agreement between Argo and SafeNet, dated
June 28, 2004 (“Employment Agreement”), this Agreement shall serve as notice of the termination of
Argo’s employment under the Employment Agreement, with such termination to become effective on
December 31, 2006 (the “Separation Date”). In addition, Argo hereby resigns effective October 17,
2006 from any and all officer positions she holds with SafeNet, including her position as President
and Chief Operating Officer of SafeNet and her positions as an officer, employee or Board member of
any SafeNet subsidiary. In addition, Argo resigns effective October 17, 2006 from all fiduciary
and trustee responsibilities, including but not limited to any employee benefit plans of the
Company and its Affiliates, and SafeNet will take all steps necessary to effectuate her
resignations.

          2. Argo will remain as an employee of SafeNet and will consult with SafeNet on the management
transition during the period referred to in Section 1. In consideration for those services,
Safenet will pay to Argo her base salary and provide her use of her automobile and family medical
and dental, disability and life insurance through the Separation Date. At the Separation Date,
SafeNet will pay any unpaid base salary and accrued vacation through the Separation Date. Except
as otherwise provided herein or in the Employment Agreement, as of the Separation Date Argo will be
eligible to receive the benefits provided to former employees of SafeNet under SafeNet’s employee
benefit plans, in accordance with the terms and conditions of each such plan.

          3. Both Argo and SafeNet reserve all rights under the Employment Agreement.

          4. SafeNet will not consider, at this time, this Agreement as a resignation within the meaning
of Section 9(b) of the Employment Agreement or, except as expressly provided herein, for any other
purpose relating to the Employment Agreement.

          5. The Personnel Committee of the SafeNet Board of Directors will determine by March 29, 2007
(“Decision Date”) whether Argo should be treated as having been terminated for Cause under the
Employment Agreement. None of the periods of time set forth in the Employment Agreement within
which events must occur or actions must be taken shall begin to run until the Personnel Committee
determines whether Argo should be considered to have been terminated for Cause (provided that any
required six-month waiting period under Section 409A of the Internal Revenue Code of 1986, as
amended, shall begin to run as of the Separation Date), except as expressly

 

 

provided herein. SafeNet and Argo agree that no statutes of limitations on any claims Argo or
SafeNet may have under the Employment Agreement shall begin to run until the Decision Date or such
earlier date as the Personnel Committee determines whether Argo should be considered to have been
terminated for Cause. Subject to the foregoing sentences of this Section 5, if the Personnel
Committee determines that Argo should be considered to have been terminated for Cause, that
determination will have the same effect under the Employment Agreement as if Argo had been
terminated for Cause as of the date of this Agreement, except for purposes of payment of salary and
benefits in Section 2. If the Personnel Committee fails to make a decision by the Decision Date,
Argo will be deemed to have been terminated by SafeNet without Cause (or to have terminated her
employment for Good Reason) as of the date of this Agreement, with entitlement to all the rights
and the benefits provided for in the Employment Agreement, except for purposes of payment of salary
and benefits in Section 2.

          6. Any payments or benefits to which Argo may be due under Sections 5 and 9 of the Employment
Agreement (other than the payments and benefits provided by Section 2 of this Agreement and
existing health care benefits subject to COBRA, for which the Company will pay all costs, excluding
Argo’s co-payment (and that of any eligible spouse or dependents), for one year following the
Separation Date) shall not become due until ten days after the Personnel Committee determines
whether Argo should be considered to have been terminated for Cause, and shall be due at that time
only if the Personnel Committee does not determine that Argo should be considered to have been
terminated for Cause; provided, however, that the foregoing shall not cause Argo to forfeit or
waive any claim for benefits she may have under a plan, policy or arrangement that is an “employee
benefit plan” within the meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended. Argo agrees that she will not exercise any options on SafeNet stock until the
Decision Date or such earlier date on which the Personnel Committee reaches its decision under
Section 5 of this Agreement, except that with respect to any options for which the Company does not
take a compensation charge in connection with its restatement of its 2000 through 2005 and first
quarter 2006 financial results she may participate in a Change of Control, as defined in Section
18(b) of the Employment Agreement, or other sale of business transaction in the same manner as
other option holders. If such a Change in Control or other sale of business transaction occurs
before the Decision Date, the parties agree to negotiate which of the options for which the change
of measurement date would result in a higher strike price Argo may exercise with the goal to avoid
any unreasonable forfeiture of unexercised options by Argo while maintaining the Company’s
interests, including receiving an option price consistent with the conclusions of its restatement
process. For purposes of Argo’s stock option agreements and the Company’s Stock Option Plans, Argo
will be deemed to have been terminated on the Separation Date. As such, any cancellation clauses
will begin to run from the Separation Date. SafeNet agrees that the foregoing restrictions on
exercise of Argo’s stock options shall not apply to those options granted on January 1, 2000.
SafeNet agrees that Argo may exercise any options for which the Company does not take a
compensation charge, once the Company has made its determination related to its restatement of
financial results.

 

 

          7. Argo and SafeNet waive their right to notice of any termination for Cause or Good Reason
under Section 8(a) and 8(b) of the Employment Agreement.

          8. Argo’s resignation under this Agreement will not affect any advancement of fees or
indemnification to which she otherwise would be entitled under applicable state law, under the
Articles of Incorporation and Bylaws of SafeNet, under the Employment Agreement, or under any other
applicable agreement. SafeNet also agrees that all such rights to indemnification shall apply to
any claims relating to or arising from her employment from the date of this Agreement through the
Separation Date.

          9. Argo and the Special Committee of the SafeNet Board of Directors and the Personnel
Committee will attempt to reach agreement on any amount to be paid or repaid to SafeNet by Argo,
and any amount to be paid by SafeNet to Argo, in connection with the Employment Agreement and with
respect to any actual or potential claims arising out of the process of granting stock options at
SafeNet (and the accounting for and disclosure of such stock option grants) or any other claims
asserted against Argo in stockholder derivative actions and any actual or potential claims Argo may
assert against SafeNet. To the extent that any agreement between the parties under this paragraph
contains a release of claims asserted against Argo in pending stockholder derivative actions, the
parties agree that such a release shall be subject to approval by the appropriate courts in which
stockholder derivative actions are pending.

          10. For a six-month period following the Separation Date (the “Post-Employment Period”), Argo
will refrain from directly or indirectly soliciting the Company’s current vendors, customers or
employees, or prospective vendors, customers or employees whose identity became or becomes known to
Argo as a result of her position at SafeNet. During the Post-Employment Period, Argo will not
participate in, be employed in any capacity by, serve as a director, consultant, agent or
representative for, or have any interest, directly or indirectly (other than a passive ownership
interest of up to 5% in any publicly traded company’s stock), in any enterprise whose primary
business is encryption based security. As of the Separation Date, the noncompetition obligations
set forth in the Employment Agreement are no longer of force and effect and are replaced by the
provisions in this Section 10.

          11. SafeNet and Argo agree that Argo shall be provided a reasonable opportunity to review and
comment on SafeNet’s proposed public statement relating to this Agreement and her separation from
SafeNet; provided that SafeNet shall not be obligated to make any changes to such public statement
based on any comments received from Argo.

          12. Nothing contained in this Agreement shall be deemed as an admission by any party.

 

 

          13. This Agreement shall not be deemed to constitute a waiver of any rights, claims or
defenses of any of the parties to this Agreement, all of which are expressly preserved. Preserved
rights and claims include, but are not limited to,
SafeNet’s ability to assert termination for Cause and Argo’s ability to assert termination
without Cause or for Good Reason or to assert she terminated her employment in accordance with
Section 9(b) of the Employment Agreement; provided, however, that Argo agrees that any assertion of
termination without Cause or for Good Reason shall be effective as of the date of this Agreement,
and that such assertion shall not be made before the Decision Date. This Agreement does not
constitute a release of any claims that either party may have against the other.

          14. This Agreement can be modified only in writing signed by the parties. The Agreement shall
constitute the entire understanding between the parties concerning the subject matter of this
Agreement and supersedes and replaces all prior negotiations, proposed agreements, and agreements,
written or oral, relating to this subject.

          15. Both parties agree to cooperate with the other in taking the actions required under the
terms of this Agreement, including without limitation those described in paragraphs 1 and 9 hereof.

          16. Both parties have cooperated in the drafting and preparation of this Agreement. Hence, in
any construction to be made of this Agreement, the same shall not be construed against any party on
the basis that the party was the drafter.

          17. This Agreement may be executed in one or more counterparts, each of which shall constitute
an original, and all of which shall constitute one instrument.

          18. In entering this Agreement, the parties represent that they have relied upon the advice of
their attorneys, who are attorneys of their own choice, and that the terms of this Agreement have
been completely read and explained to them by their attorneys, and that those terms are fully
understood and voluntarily accepted by them.

          19. To the fullest extent allowed by law, any controversy or claim arising out of or relating
to this Agreement shall be settled by binding and non-appealable arbitration conducted in
Baltimore, Maryland, or such other place as the parties hereto agree, by an arbitrator acting in
accordance with the Employment Arbitration rules of the American Arbitration Association. To the
extent anything in this Agreement conflicts with any arbitration procedures required by applicable
law, the arbitration procedures required by applicable law shall govern. The proceedings before
the arbitrator shall be maintained in the strictest confidence by the parties and the arbitrator,
subject only to legal requirements of disclosure. The arbitrator shall issue a written award that
sets forth the essential findings and conclusions on which the award is based. The arbitrator
shall have the authority to award any relief authorized by law in connection with the asserted
claims or disputes. The arbitration award shall be enforceable before any court of competent
jurisdiction, and shall be subject to correction, confirmation or vacatur only on the grounds
provided by applicable law, including the Federal Arbitration Act. Nothing in this paragraph shall
be construed to apply to or affect pending stockholder derivative actions brought on behalf of the
Company.

 

 

          20. SafeNet and Argo will share equally the arbitrator’s fees and any other expense of
conducting the arbitration. Each party will pay its own attorney’s fees and costs, except that the
arbitrator may award the prevailing party reimbursement from the opposing party or parties of its
reasonable fees (including attorneys’ fees) and expenses she or it may incur in connection with
such arbitration. Any final decision of the arbitrator so chosen may be enforced by a court of
competent jurisdiction.

          Each of the undersigned have read the foregoing Agreement, and accepts and agrees to the
provisions it contains and hereby executes it voluntarily with full understanding of its
consequences.

	 	 	 	 	 
	SafeNet, Inc.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Walter Straub	 	 
	Title:

	 	 

Personnel Committee Chairman
	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 	 	 
	By:
	 	/s/ Andrew E. Clark	 	 
	 

	 	 	 	 
	Title:

	 	Special Committee Chairman	 	 
	 
	 	 	 	 
	Dated:
	 	October 17, 2006	 	 
	 
	 	 	 	 
	By:
	 	/s/ Carole Argo	 	 
	 

	 	 	 	 
	Carole Argo	 	 
	 
	 	 	 	 
	Dated:
	 	10/16/06exv10w3

 

Exhibit 10.3

EXECUTION COPY

EMPLOYMENT AGREEMENT

     AGREEMENT, dated the 17th day of October 2006 (“the Effective Date”) between SafeNet, Inc., a
Delaware corporation (the “Company”) and Walter W. Straub (the “Executive”).

WITNESSETH:

     WHEREAS, the Company and the Executive wish to enter into an employment and compensation
arrangement on the following terms and conditions;

1. Employment. Subject to the terms and conditions of this Agreement, the Company agrees
to employ the Executive as its Chief Executive Officer during the Employment Period (as defined
below) and to perform such acts and duties and furnish such services to the Company and its
affiliates and related parties as the Company’s Board of Directors shall from time to time direct.
The Executive hereby accepts such employment and agrees to devote his full time and best efforts to
the duties, provided that, subject to the approval of the Board of Directors (which approval shall
not be unreasonably withheld), the Executive may engage in other business activities which (i)
involve no conflict of interest with the interest of the Company and (ii) do not interfere with the
performance by the Executive of his duties under this Agreement.

2. Compensation. For services rendered to the Company during the term of this Agreement,
the Company shall compensate the Executive with an initial salary, payable in bi-weekly
installments, of Four Hundred Fifty Thousand Dollars ($450,000) per annum. Notwithstanding the
foregoing, in no event shall the Executive’s salary be less than Four Hundred Fifty Thousand
Dollars ($450,000) per annum during the Employment Period or any extension thereof, if any.

3. Incentive Compensation; Stock Options.

     a. The Executive shall also be entitled to annual incentive cash compensation of no less than
fifty percent (50%) of the applicable base salary actually earned by the Executive during the
Employment Period if sales objectives and any other annual objectives specified by the Compensation
Committee are achieved. The nature and extent of such incentive compensation shall be determined
by the Compensation Committee and shall be paid to the Executive no later than ninety (90) days
following the end of the calendar year.

     b. Additional awards of long term incentive compensation, which may include cash, stock or
stock options, or other equivalent long term incentive compensation, may be awarded annually as
approved by the Compensation Committee.

     c. As soon as administratively feasible after the Effective Date, the Company shall grant to
Executive an option, pursuant to the SafeNet, Inc. 2001 Omnibus Stock Plan or any successor thereto
(the “Stock Plan”), to purchase 50,000 shares of the Company’s common stock. The option granted
pursuant to this Section 3.c. shall have a per-share strike price equal to the closing price of a
share of the Employer’s common stock as of the date of the grant and shall vest immediately.

 

 

     d. If the Executive’s employment is terminated (i) on account of his death or Disability, (ii)
by the Company for any reason other than for Cause or (iii) by the Executive for Good Reason:

     (x) The stock options described in Section 3.c. above that are outstanding and not yet
vested shall become fully vested; and

     (y) Each such stock option granted to the Executive shall remain exercisable until the
earlier of (A) the third anniversary of the Termination Date or (B) the date on which the
option terminates pursuant to the terms of the applicable Stock Plan.

     In the event any provision in this Section 3.c. and Section 3.d. is inconsistent with a
provision in a stock option award agreement entered into on or after the Effective Date, the
provision in this Section 3.c. and Section 3.d. shall govern, unless expressly provided otherwise.

4. Benefits. During the term of the Executive’s employment with the Company, the Executive
shall be eligible to receive such employee benefits as are provided to other similarly situated
executive officers of the Company, including family medical and dental, disability and life
insurance, and participation in pension and retirement plans, incentive compensation plans, stock
option plans and other benefit plans, in each case in accordance with the terms of the applicable
plans, as in effect from time to time. During the term of the Executive’s employment with the
Company, the Company may provide or cause to be provided to the Executive such additional benefits
as the Company may deem appropriate from time to time. The Company shall also provide the
Executive with the use of an automobile at Company expense, in accordance with the Company’s
automobile policy or practice as in effect from time to time. The Company shall provide mutually
agreeable housing for the Executive in the BelCamp area, plus such additional amounts as necessary
to pay any federal, state, or local income, employment and other taxes incurred with respect to the
housing provided pursuant to this Section 4 and to place the Executive in the same after-tax
position as he would be in if such housing were not subject to any tax.

5. Vacation. The Executive shall be entitled to annual vacations in accordance with the
Company’s vacation policies in effect from time to time for executive officers of the Company.

6. Employment Period. The “Employment Period” shall commence on the Effective Date of this
Agreement and shall terminate six (6) months thereafter. If the Executive shall remain in the full
time employ of the Company beyond the Employment Period without any written agreement between the
parties, this Agreement shall be deemed to continue on a month to month basis and either party
shall have the right to terminate this Agreement at the end of any ensuing calendar month on
written notice of at least 30 days.

7. Termination.

     a. Executive’s employment with the Company shall be “at will.” Either the Company or the
Executive may terminate this Agreement and Executive’s employment at any time, with or without
Cause or Good Reason (as such terms are defined below), in its or his sole
discretion, upon thirty (30) days’ prior written notice of termination, subject to Section 8
of this Agreement.

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     b. Without limiting the foregoing Section 7.a., (i) the Executive may terminate his employment
with the Company at any time for Good Reason, or (ii) the Company may terminate his employment at
any time for Cause. “Good Reason” shall mean death, Disability (as defined below), a substantial
diminution in the Executive’s duties and/or responsibilities (including but not limited to a
diminution in title, or an adverse change in reporting structure), relocation of either Executive’s
office or the Company’s Headquarters greater than fifty (50) miles from their current locations, or
the Company’s failure or refusal to perform its obligations hereunder (including but not limited to
payment of all compensation due hereunder in full when due) following ten (10) days written notice
to such effect. “Cause” shall mean (i) the Executive’s willful, repeated or grossly negligent
failure to perform his duties hereunder or to comply with any reasonable or proper direction given
by or on behalf of the Company’s CEO which failure remains uncured for greater than ten (10) days
after Executive’s receipt of formal written notice of such failure; (ii) the Executive’s
conviction of, or plea of guilty or no contest to, a felony or other crime involving moral
turpitude; (iv) the Executive’s being found guilty of, or pleading no contest to, any act of fraud,
theft or dishonesty, or any intentional tort against the Company; (v) the Executive’s violation of
any of the material terms, covenants, representations or warranties contained in this Agreement,
which violation remains uncured for greater than ten (10) days after Executive’s receipt of formal
written notice of such violation; or (vi) the Executive engaging in illegal conduct or gross
misconduct which causes financial or reputational harm to the Company.

     c. “Disability” shall mean that the Executive, in the good faith determination of the Chief
Executive Officer of the Company, is unable to render services of the character contemplated hereby
and that such inability (i) may be expected to be permanent, or (ii) may be expected to continue
for a period of at least three (3) consecutive months (or for shorter periods totaling more than
six (6) months during any period of twelve (12) consecutive months). Termination resulting from
Disability may only be effected after at least thirty (30) days written notice by the Company of
its intention to terminate the Executive’s employment.

     d. “Termination Date” shall mean (i) if this Agreement is terminated on account of death, the
date of death; (ii) if this Agreement is terminated for Disability, the date established by the
Company pursuant to Section 7.c. hereof; (iii) if this Agreement is terminated by the Executive,
the date the Executive thereafter ceases work; or (v) if this Agreement expires by its terms, the
last day of the term of this Agreement.

8. Severance.

     a. If the Company terminates the employment of the Executive against his will and without
Cause, or the Executive terminates his employment for a Good Reason, the Executive shall be
entitled to receive, subject to receipt by the Company of an executed release and waiver of claims
(that has not be revoked during any applicable revocation period) in a form acceptable to the
Company: (i) salary and target incentive compensation accrued through the Termination Date, plus
(ii) the balance of the Executive’s compensation hereunder to the end of the Employment Period
computed using the latest applicable salary rate. The Company shall make
severance payments pursuant to this section, in full, within 30 days of the Termination Date.
Notwithstanding the foregoing, the Company shall not be required to pay any severance pay for any
period following the Termination Date if the Executive violates the provisions of Section 14,
Section 15 or Section 16 of this Agreement. In such event, the Company shall provide written
notice to the Executive detailing such violation.

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     b. If the Executive is terminated by the Company for Cause or the Executive terminates
employment other than for Good Reason, then the Executive shall be entitled to receive compensation
and incentive compensation earned through the Termination Date only.

     c. The Executive acknowledges that, upon termination of his employment, he is entitled to no
other compensation, severance or other benefits other than those specifically set forth in this
Agreement or any applicable stock option agreement.

     d. Notwithstanding anything herein to the contrary, to the extent COBRA shall be applicable to
the Company or as provided by law, the Executive shall be entitled to continuation of group health
plan benefits following the Termination Date if the Executive makes the appropriate conversion and
payments.

9. Expenses. The Company shall pay or reimburse the Executive for all expenses normally
reimbursed by the Company, reasonably incurred by him in furtherance of his duties hereunder an
authorized and approved by the Company in compliance with such rules relating there to as the
Company may, from time to time, adopt and as may be required in order to permit such payments as
proper deductions to the Company under the Internal Revenue Code of 1986, as amended (the “Code”),
and the rule and regulations adopted pursuant thereto now or hereafter in effect. In addition to
the foregoing, the Company shall reimburse the Executive for reasonable attorneys’ fees incurred by
the Executive for the negotiation and preparation of this Agreement, subject to the expense
documentation requirements of the Company’s expense reimbursement policy.

10. Facilities and Services. The Company shall furnish the Executive with office space,
secretarial, support staff and such other facilities and services as shall be reasonably necessary
for the performance of his duties under this Agreement.

11. Mitigation Not Required. In the event this Agreement is terminated, the Executive
shall not be required to mitigate amounts payable pursuant hereto by seeking other employment or
otherwise. The Executive’s acceptance of any such other employment shall not diminish or impair
the amounts payable to the Executive pursuant hereto, except as provided in 8.c. above.

12. Place of Performance. The Executive shall perform his duties primarily in Belcamp,
Maryland or locations within a reasonable proximity thereof, except for reasonable travel as the
performance of Executive’s duties may require. Notwithstanding the foregoing, the Executive may
perform his duties from the Company’s Torrance, California office for up to ten percent (10%) of
the business days in the Employment Period, provided so doing does not adversely impact his ability
to effectively perform his duties under this Agreement as determined by the Board of Directors in
its discretion.

4

 

13. Insurance and Indemnity. During the Employment Period, if available at reasonable
costs, the Company shall maintain, at its expense, officers and directors fiduciary liability
insurance covering the Executive and all other executive officers and directors in an amount of not
less than $1,000,000 per officer and/or director. The Company shall also indemnify the Executive,
to the fullest extent permitted by law, from any liability asserted against or incurred by the
Executive by reason of the fact that the Executive is or was an officer or director of the Company
or any affiliate or related party or is or was serving in any capacity at the request of the
Company for any other corporation, partnership, joint venture, trust, employment benefit plan or
other enterprise, including reasonable attorneys fees incurred by Executive. This indemnity shall
survive termination of this agreement. Executive shall be entitled to retain counsel of his
choosing to defend against any third-party claims covered by this paragraph and Company hereby
agrees to reimburse Executive for all reasonable attorneys fees incurred on behalf of Executive
therefor. The Company shall advance all reasonable attorneys’ fees, including expenses, costs and
obligations incurred by or on behalf of Executive in connection with this paragraph, within twenty
days after the receipt by the Company of a statement or statements from Executive requesting such
advance or advances from time to time. Such statement or statements shall reasonably evidence the
expenses incurred by Executive.

14. Noncompetition.

     a. The Executive agrees that, except in accordance with his duties under this Agreement on
behalf of the Company, he will not, during his employment, or for a period of six (6) months from
the Termination Date, participate in, be employed in any capacity by, serve as director,
consultant, agent or representative for, or have any interest, directly or indirectly, in any
enterprise which is engaged in the digital encryption business. In addition, the Executive agrees
that for a period of six (6) months after the Termination Date, the Executive shall not own, either
directly or indirectly or through or in conjunction with one or more members of his or his spouse’s
family or through any trust or other contractual arrangement, a greater than five percent (5%)
interest in, or otherwise control either directly or indirectly, any partnership, corporation, or
other entity which is engaged in the digital encryption business. Executive further agrees, for
such six (6) month period following the Termination Date to refrain from directly or indirectly
soliciting Company’s vendors, customers (or potential customers whose identity became known to the
Executive in connection with his relationship with or employment by the Company) or employees.

     b. The Executive hereby agrees that damages and any other remedy available at law would be
inadequate to redress or remedy any loss or damage suffered by the Company upon any breach of the
terms of this Section by the Executive, and the Executive therefore agrees that the Company, in
addition to recovering on any claim for damages or obtaining any other remedy available at law,
also may enforce the terms of the this Section by injunction or specific performance, and may
obtain any other appropriate remedy available in equity.

5

 

15. Assignment of Patents. Executive shall disclose fully to the Company any and all
discoveries he shall make and any and all ideas, concepts or inventions which he shall conceive or
make during his period of employment, or during the period of six (6) months after his
employment shall terminate if, in whole or in part, are the result of his work with the Company.
Such disclosure is to be made promptly after each discovery or conception, and the discovery, idea
concept or invention will become and remain the property of the Company, whether or not patent
applications are filed thereon. Upon request and at the expense of the Company, the Executive shall
make application through the patent solicitors of the Company for letters patent of the United
States and any and all other countries at the discretion of the company on such discoveries, ideas
and inventions, and to assign all such applications to the Company, or at its order, forthwith,
without additional payment by the Company during his period of employment and for reasonable
compensation for time actually spent by the Executive at such work at the request of the Company
after the termination of the employment. He is to give the Company, its attorneys and solicitors,
all reasonable assistance in preparing and prosecuting such applications and, on request of the
Company, to execute all papers and do all things that may be reasonably necessary to protect the
right of the Company and vest in it or its assigns the discoveries, ideas or inventions,
applications and letters patent herein contemplated. Such cooperation shall also include all
actions reasonably necessary to aid the Company in the defense of its rights in the event of
litigation.

16. Trade Secrets.

     a. In the course of the term of this Agreement, it is anticipated that the Executive shall
have access to secret or confidential technical and commercial information, records, data
specifications, systems, methods, plans, policies, inventions, material and other knowledge
(“Confidential Material”) owned by the Company and its subsidiaries. The Executive recognizes and
acknowledges that included within the Confidential Material are the Company’s confidential
commercial information, technology, methods of manufacture, designs, and any computer programs,
source codes, object codes, executable codes and related materials, all as they may exist from time
to time, and that they are valuable special and unique aspects of the Company’s business. All such
Confidential Material shall be and remain the property of the Company. Except as required by his
duties to the Company, the Executive shall not, directly or indirectly, either during the term of
his employment or at any time thereafter, disclose or disseminate to anyone or make use of, for any
purpose whatsoever, any Confidential Material. Upon termination of his employment, the Executive
shall promptly deliver to the Company all Confidential Material (including all copies thereof,
whether prepared by the Executive or others) that is in the possession or under the control of the
Executive. The Executive shall not be deemed to have breached this Section if the Executive shall
be specifically compelled by lawful order of any judicial, legislative, or administrative authority
or body to disclose any confidential material.

     b. The Executive hereby agrees that damages and any other remedy available at law would be
inadequate to redress or remedy any loss or damage suffered by the Company upon any breach of the
terms of this Section by the Executive, and the Executive therefore agrees that the Company, in
addition to recovering on any claim for damages or obtaining any other remedy available at law,
also may enforce the terms of this Section by injunction or specific performance, and my obtain any
other appropriate remedy available in equity.

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17. Notices. Any notice required or permitted to be given under this Agreement shall be
sufficient if in writing and if sent by registered or certified mail, return receipt requested to
his
residence in the case of the Executive, or to its principal office in the case of the Company, or
to such other addresses as they may respectively designate in writing.

18. Entire Agreement; Waiver. This Agreement contains the entire understanding of the
parties with respect to the employment relationship between Company and the Executive, and
supercedes any prior agreements relating to such relationship, including any Change of Control
Agreement, and may not be changed orally but only by an agreement in writing, signed by the party
against whom enforcement of any waiver, change, modification or discharge is sought. Waiver of or
failure to exercise any rights provided by this Agreement in any respect shall not be deemed a
waiver of any further or future rights.

19. Binding Effect; Assignment. The rights and obligations of this Agreement shall bind
and inure to benefit of any successor of the Company by reorganization, merger or consolidation, or
any assignee of all or substantially all of the Company’s business or properties. The Executive’s
rights hereunder are personal to and shall not be transferable nor assignable by the Executive.

20. Headings. The headings contained in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

21. Governing Law; Arbitration. This Agreement shall be construed in accordance with and
governed for all purposes by the laws and public policy of the State of Delaware applicable to
contracts executed and to wholly performed within such state. Any dispute or controversy arising
out of or relating to this Agreement shall be settled by arbitration in accordance with the rules
of the American Arbitration Association and judgment upon the award may be entered in any court
having jurisdiction thereover. The arbitration shall be held in Wilimington, Delaware or in such
other place as the parties hereto may agree. The Company acknowledges and agrees that it shall be
solely responsible for payment of all filing fees and hearing fees in connection with any
arbitration brought pursuant to this section. The prevailing party (if any, as determined by the
arbitrator) in arbitration shall be entitled to reimbursement by the non-prevailing party of its
reasonable attorneys fees incurred in connection with the arbitration.

22. Further Assurances. Each of the parties agrees to execute, acknowledge, deliver and
perform, and cause to be executed, acknowledged, delivered and performed, at any time and from time
to time, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney
and/or assurances as may be necessary or proper to carry out the provisions or intent of this
Agreement.

23. Severability. The parties agree that if any one or more of the terms, provisions,
covenants or restrictions of this Agreement shall be determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restriction of this Agreement shall be in full force and effect and shall in no way
be affected, impaired or invalidated.

24. Counterparts. This Agreements maybe executed in several counterparts, each of which
shall be deemed to be and original, but all of which together will constitute on and the same
Agreement.

7

 

     IN WITNESS WHEREOF, SAFENET, INC. has caused this instrument to be signed by a duly authorized
officer and the Executive has hereunto set his hand the day and year first above written.

SAFENET, INC.

	 	 	 	 	 	 	 
	By
	 	/s/  Bruce Thaw	 	 	 	 
	 

	 	 
	 	 
	Name:  Bruce Thaw

	 

	 	 
	 	 
	Title:  Director
	 	 	 	 	 
	/s/
Walter W. Straub 
	 	 	 	 
	 	 	 	 	 
	Walter W. Straub	 	 	 	 

8

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