Document:

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                                                                   EXHIBIT 10.52

                     VASCO Data Security International, Inc.
                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is made and entered into as of
January 1, 2003 (the "Effective Date"), by and between VASCO Data Security
International, Inc., a Delaware corporation (the "Company"), and CLIFFORD K.
BOWN (the "Executive").

         WHEREAS, the Company and the Executive desire to enter into this
Agreement to establish the rights and obligations of the Executive and the
Company in such employment relationship; and

         WHEREAS, the terms of this Agreement have been approved by the Board of
Directors of the Company,

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Executive and the Company
hereby agree as follows:

1. Employment of Executive.

         As of the Effective Date, the Company hereby engages and employs
Executive in an executive capacity as described in Exhibit A attached hereto,
and Executive hereby accepts such employment and agrees to act as an employee of
the Company in accordance with the terms of employment hereinafter specified
("Executive Employment").

2. Term of Executive Employment.

         The period of Executive Employment shall begin on the Effective Date
and continue until terminated as hereinafter provided (the "Employment Period").

3. Duties.

         (a) Executive shall be employed by Company as an Officer of the Company
in the capacity and with the duties set forth in Exhibit A attached hereto.

         (b) Nothing contained herein shall be construed so as to prohibit
Executive from performing such other or additional duties or responsibilities,
and exercising such other or additional authority in furtherance of the goals of
the Company, as the Executive and Chief Executive Officer and/or the Board of
Directors of the Company shall from time to time agree upon.

         (c) With the exception of your current role as advisor to the Board of
Directors of Florstar Sales, Inc., you shall devote your entire time and
attention to VASCO's business. During business hours, you shall not engage in
any other form of business activity, regardless of whether it is pursued for
gain or profit.

       (d) During Executive's employment hereunder, Executive shall not be
required to relocate his principal residence from his current location as a
result of the Company moving its principal executive offices or the Executive's
office to an address greater than forty (40) miles away from the Company's
principal executive offices (or the Executive's office) at the Effective Date
and shall not be required to perform services which could make the continuance
of Executive's principal residence in such location unreasonably difficult or
inconvenient for Executive except to the extent that the performance of such
services (and travel) is commensurate with Executive's duties specified
hereunder.

4. Executive Salary and Compensation.

         (a) Base Salary. During the Employment Period, the Company shall pay or
cause to be paid to Executive an initial base salary ("Base Salary") as set
forth in Exhibit A attached hereto and made a part hereof, payable to Executive
on a periodic basis in accordance with the Company's then current executive
salary payment practice; provided, however, that the installments may not be
made less frequently than on a monthly basis. Such Base Salary shall be subject
to review in accordance with the Company's normal practice for executive salary
review from time to time in effect, and will not be

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reduced without the prior written consent of Executive. Any increase in Base
Salary shall be in writing and be attached to this Agreement as an amendment to
Exhibit A.

         (b) Incentive Compensation The Compensation Committee of the Company's
Board of Directors (the "Committee")shall determine for each fiscal year of the
Company during the Employment Period the amount of incentive compensation, if
any, to be awarded to the Executive.

         (c) Withholding of Certain Taxes. All compensation referred to in
Section 4(a) and 4(b) of this Agreement is stated in terms of gross amount, it
being understood that the Company will be required to withhold from such gross
amount deductions for federal, state and local income taxed (if any). F.I.C.A..
unemployment compensation taxes and the like.

5. Expenses. The Company shall pay or reimburse Executive in accordance with the
Company's policy for all expenses reasonably incurred by Executive during the
period of Executive's employment in connection with the performance of
Executive's duties under this Agreement, including, without limitation, travel,
entertainment and automobile expenses. As the Company may reasonably request,
Executive shall provide to the Company documentation or supporting information
relating to the expenses for which Executive seeks reimbursement.

6. (a) Termination of Executive Employment Other than by the Executive. The
Company shall have the option to terminate Executive's employment with or
without cause, for any reason whatsoever, without any breach of this Agreement
under the following circumstances:

                  (i)      Death or Disability. The Executive's employment
                           hereunder shall terminate upon his death, and may be
                           terminated by the Company in the event of his
                           Disability, which for the purposes of this Agreement
                           shall mean being unable to perform his duties to the
                           Company as set forth herein for a continuous period
                           of at least one hundred and eighty (180) days,
                           provided that the Executive does not return to work
                           on a substantially full-time basis within thirty (30)
                           days after Notice of Termination is given by the
                           Company pursuant to the provisions of this paragraph.
                           A return to work of less than thirty (30) days shall
                           not interrupt a continuous period of Disability.
                           During any period that the Executive fails to perform
                           his duties hereunder as a result of incapacity due to
                           physical or mental illness, the Executive shall
                           continue to receive his Base Salary at the rate then
                           in effect until the date his employment is
                           terminated.

                  (ii)     Cause. The Company may terminate the Executive's
                           employment for cause. For the purpose of this
                           Agreement, "Cause" shall mean: any act by the
                           Executive that constitutes fraud, dishonesty, bad
                           faith or a felony toward the Company; the conviction
                           of the Executive of a felony or crime involving moral
                           turpitude; the Executive entering into any
                           transaction or contractual relationship causing
                           diversion of business opportunity from the Company
                           (other than on behalf of the Company, or with the
                           prior written consent of the Board of Directors of
                           the Company); or the Executive's willful and
                           continued neglect of his material duties hereunder
                           after thirty (30) days written notice to the
                           Executive by the Board of Directors. The Company will
                           pay to the Executive all compensation owing through
                           the date of termination; however, in no event will
                           any bonus be paid to an Executive terminated for
                           Cause. Executive is bound by the Non-Compete terms
                           contained in this Agreement for the period of time
                           set forth in Exhibit A.

                  (iii)    Without Cause. The Company may terminate the
                           Executive's employment hereunder without cause. If
                           the Executive is terminated without Cause, the
                           Company shall continue to pay the Executive his Base
                           Salary at the rate then in effect for the period set
                           forth in Exhibit A, from the Date of Termination.
                           Executive is bound by the Non-Compete terms
                           contained in this Agreement for the period of time
                           set forth in Exhibit A.

         (b) Termination of Employment by Executive.

                  (i)      The Executive may terminate his employment at any
                           time. If the Executive terminates his employment with
                           the Company, the Company shall pay the Executive all
                           compensation owing through the Date of Termination.
                           Executive is bound by the Non-Compete terms contained
                           in this Agreement for the period of time set forth in
                           Exhibit A.

                  (ii)     For Good Reason. If the Executive terminates his
                           employment for Good Reason, the Company shall
                           continue to pay the Executive his Base Salary at the
                           rate then in effect for the period set forth as
                           Severance in Exhibit A, from the Date of Termination.
                           Executive is bound by the Non-Compete terms contained
                           in this

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                           Agreement for the period of time set forth in Exhibit
                           A. For purposes of this Agreement, "Good Reason"
                           shall mean:

                           (1)      the assignment to the Executive of any
                                    duties inconsistent in any respect with the
                                    Executive's position (including status,
                                    offices, titles and reporting requirements),
                                    authority, duties or responsibilities or any
                                    other action by the Company which results in
                                    a diminution in such position, authority,
                                    duties or responsibilities, excluding for
                                    this purpose an isolated, insubstantial and
                                    inadvertent action not taken in bad faith
                                    and which is remedied by the Company
                                    promptly after receipt of notice thereof
                                    given by the Executive;

                           (2)      any failure by the Company to comply with
                                    any provision of any employment agreement
                                    entered into between the Executive and the
                                    Parent Company (or any direct or indirect
                                    subsidiary thereof) other than an isolated,
                                    insubstantial and inadvertent failure not
                                    occurring in bad faith and which is remedied
                                    by the Company promptly after receipt of
                                    notice thereof given by the Executive;

                           (3)      the Parent Company's (or any direct or
                                    indirect subsidiary thereof) requiring the
                                    Executive to be based at any office or
                                    location other than the office occupied by
                                    the Executive as of the date of this
                                    Agreement or a reasonably comparable office
                                    located within a 40-mile radius of such
                                    current office; or

                           (4)      any failure by the Company to continue at
                                    least its customary base compensation
                                    payments to the Executive.

              Any good faith determination of "Good Reason" made by the
Executive shall be conclusive.

         (c) Notice of Termination. Any termination of the Executive's
employment by the Company hereunder or by the Executive other than termination
upon the Executive's death, shall be communicated by written Notice of
Termination to the other party. For purposes of this Agreement, a "Notice of
Termination" means a notice that shall indicate the specific termination
provision in this Agreement relied upon, and shall set 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.

         (d) Date of Termination. "Date of Termination" shall mean:

                  (i)      If Executive's employment is terminated by his death,
                           the date of his death;

                  (ii)     If the Executive's employment is terminated by the
                           Company as a result of Disability pursuant to this
                           paragraph, the date that is thirty (30) days after
                           Notice of Termination given; provided the Executive
                           shall not have returned to the performance of his
                           duties on a full-time basis during such thirty (30)
                           day period.

                  (iii)    If the Executive terminates his employment at his
                           election pursuant to this paragraph, the date that is
                           ten (10) days after Notice of Termination is given.

                  (iv)     If the Executive's employment is terminated by the
                           Company without Cause pursuant to this paragraph, the
                           date that is ten (10) days after Notice of
                           Termination is given.

                  (v)      If the Executive's employment is terminated by the
                           Company for Cause pursuant to this paragraph, the
                           date on which Notice of Termination is given.

7. Change in Control.

         (a) For purposes hereof, a "Section 7 Termination" shall have occurred
if Executive's employment is terminated by the Company other than for Cause, at
any time following the occurrence of a change in control of VASCO Data Security
International, Inc. (the "Parent Company") or the Company.

         (b) "Change in Control" shall mean the happening of any of the
following events:

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                  (i)      An acquisition by any individual, entity or group
                           (within the meaning of Section 13(d)(3) or 14(d)(2)
                           of the Exchange Act) (a "Person") of beneficial
                           ownership (within the meaning of Rule 13d-3
                           promulgated under the Exchange Act) of 25% or more of
                           either (1) the then outstanding shares of common
                           stock of the Company (the "Outstanding Company Common
                           Stock") or (2) the combined voting power of the then
                           outstanding voting securities of the Company entitled
                           to vote generally in the election of directors (the
                           "Outstanding Company Voting Securities"); excluding,
                           however, the following: (1) any acquisition directly
                           from the Company, other than an acquisition by virtue
                           of the exercise of a conversion privilege unless the
                           security being so converted was itself acquired
                           directly from the Company, (2) any acquisition by the
                           Company; (3) any acquisition by any employee benefit
                           plan (or related trust) sponsored or maintained by
                           the Company or any corporation controlled by the
                           Company; or (4) any acquisition by any Person
                           pursuant to a transaction which complies with clauses
                           (1), (2) and (3) of subsection (iii) of this Section
                           7(b); or

                  (ii)     Within any period of 24 consecutive months, a change
                           in the composition of the Board such that the
                           individuals who, immediately prior to such period,
                           constituted the Board (such Board shall be
                           hereinafter referred to as the "Incumbent Board")
                           cease for any reason to constitute at least a
                           majority of the Board; provided, however, for
                           purposes of this Section 7(b)(ii), that any
                           individual who becomes a member of the Board during
                           such period, whose election, or nomination for
                           election by the Company's stockholders, was approved
                           by a vote of at least a majority of those individuals
                           who are members of the Board and who were also
                           members of the Incumbent Board (or deemed to be such
                           pursuant to this proviso) shall be considered as
                           though such individual were a member of the Incumbent
                           Board; but, provided further, that any such
                           individual whose initial assumption of office occurs
                           as a result of either an actual or threatened
                           election contest (as such terms are used in Rule
                           14a-11 of Regulation 14A promulgated under the
                           Exchange Act) or other actual or threatened
                           solicitation of proxies or consents by or on behalf
                           of a Person other than the Board shall not be so
                           considered as a member of the Incumbent Board; or

                  (iii)    The approval by the stockholders of the Company of a
                           reorganization, merger or consolidation or sale or
                           other disposition of all or substantially all of the
                           assets of the Company ("Corporate Transaction");
                           excluding, however, such a Corporate Transaction
                           pursuant to which (1) all or substantially all of the
                           individuals and entities who are the beneficial
                           owners, respectively, of the outstanding Company
                           Common Stock and Outstanding Company Voting
                           Securities immediately prior to such Corporate
                           Transaction will beneficially own, directly or
                           indirectly, more than 60% of, respectively, the
                           outstanding shares of common stock, and the combined
                           voting power of the then outstanding voting
                           securities entitled to vote generally in the election
                           of directors, as the case may be, of the corporation
                           resulting from such Corporate Transaction (including,
                           without limitation, a corporation which as a result
                           of such transaction owns the Company or all or
                           substantially all of the Company's assets, either
                           directly or through one or more subsidiaries) in
                           substantially the same proportions as their
                           ownership, immediately prior to such Corporate
                           Transaction, of the outstanding Company Common Stock
                           and Outstanding Company Voting Securities, as the
                           case may be, (2) no Person (other than the Company;
                           any employee benefit plan (or related trust)
                           sponsored or maintained by the Company, by any
                           corporation controlled by the Company, or by such
                           corporation resulting from such Corporate
                           Transaction) will beneficially own, directly or
                           indirectly, more than 25% of, respectively, the
                           outstanding shares of common stock of the corporation
                           resulting from such Corporate Transaction or the
                           combined voting power of the outstanding voting
                           securities of such corporation entitled to vote
                           generally in the election of directors, except to the
                           extent that such ownership existed with respect to
                           the Company prior to the Corporate Transaction, and
                           (3) individuals who were members of the Board
                           immediately prior to the approval by the stockholders
                           of the Corporation of such Corporate Transaction will
                           constitute at least a majority of the members of the
                           board of directors of the corporation resulting from
                           such Corporate Transaction; or

                  (iv)     The approval by the stockholders of the Company of a
                           complete liquidation or dissolution of the Company,
                           other than to a corporation pursuant to a transaction
                           which would comply with clauses (1), (2) and (3) of
                           subsection (iii) of this Section 7(b), assuming for
                           this purpose that such transaction were a Corporate
                           Transaction.

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         (c) If a Section 7 Termination occurs, the Company shall continue to
pay to Executive, as severance compensation, his Base Salary and Incentive
Compensation at the rate then in effect for the period set forth in Exhibit A,
from the effective date of Executive's termination. Executive is bound by the
Non-Compete terms contained in this Agreement for the period of time set forth
in Exhibit A. In lieu of regular payments of Base Salary, the Executive shall be
entitled to receive, upon Executive's written election, a lump sum payment equal
to the present value of the stream of monthly payments due and unpaid. Executive
may also similarly elect to receive a lump sum payment equal to the present
value of the Incentive Compensation due pursuant to this Agreement. For purposes
of this computation, present value shall be calculated on the basis of the prime
rate of interest announced by the Company's principal bank, or if it has no such
bank, published in the Wall Street Journal, on the date of Executive's election
to receive the lump sum payments provided for herein.

         (d) In the event of a Change in Control, if the Executive terminates
his employment for Good Reason, the Company shall continue to pay the Executive
his Base Salary and Incentive Compensation at the rate then in effect for the
period set forth as Severance in Exhibit A, from the Date of Termination. In
lieu of regular payments of Base Salary, the Executive shall be entitled to
receive, upon Executive's written election, a lump sum payment equal to the
present value of the stream of monthly payments due and unpaid. Executive may
also similarly elect to receive a lump sum payment equal to the present value of
the Incentive Compensation due pursuant to this Agreement. Executive is bound by
the Non-Compete terms contained in this Agreement for the period of time set
forth in Exhibit A.

8. Gross Up for Excise Tax Liability. If it shall be determined that any payment
or benefit received or to be received by Executive under this Agreement or any
other plan, arrangement or agreement of the Company or any person whose actions
result in a Change in Control of the Company or any affiliate thereof (all such
payments and benefits a "Payment"), would be subject to the excise tax imposed
by Section 4999 of the Internal revenue Code of 1986, as amended (the "Code")
(the "Excise Tax"), then the Company shall pay to Executive an additional
payment (a "Gross-Up Payment") in an amount necessary to reimburse Executive, on
an after-tax basis, for the Excise Tax and for any federal, state and local
income tax and excise tax (including any interest and penalties imposed with
respect to such taxes) that may be imposed by reason of the Payment. For
purposes of determining the amount of any Gross-Up Payment, Executive shall be
deemed to pay federal, state and local income taxes at the highest applicable
marginal rate of taxation in the calendar year in which the Gross-Up Payment is
to be made. All determinations required to be made under this Section 8,
including whether a Gross-Up Payment is required and the amount of such Gross-Up
Payment shall be made by the Accounting Firm which shall provide detailed
supporting calculations both to the Company and Executive within 15 business
days of the request for such determination. Such request may be made by either
party. The Company shall pay the fees and expenses of the Accounting Firm in
connection with any determinations hereunder. The Gross-Up Payment shall be paid
by the Company within 10 days of the Accounting Firm's determination of the
amount thereof.

9. Non-Compete. In the event Executive terminates his employment or is
terminated pursuant to this Agreement, Executive hereby agrees that he shall
not, directly or indirectly, as employee, agent, consultant, stockholder,
director, co-partner or in any other individual or representative capacity, own,
operate, manage, control, invest in or participate in any manner in, act as a
consultant or advisor to, render services for (alone or in association with any
person, firm, corporation or entity), or otherwise assist any firm, corporation
or entity which is in direct competition with the Company ("Competitor") upon
the terms and conditions and for the term set forth in Exhibit A; provided,
however, that nothing contained herein shall be construed to prevent Executive
from investing in the stock of a Competitor, but only if Executive is not
involved in the business of said Competitor and if Executive and his associates
(as such term is defined in Regulation 14(A) promulgated under the Securities
Exchange Act of 1934, as in effect on the date hereof), collectively, do not own
more than an aggregate of two (2%) percent of the stock of such Competitor.

10. Mitigation of Amounts Payable Under This Agreement. The Executive shall not
be required to mitigate the amount of any payment provided for pursuant to this
Agreement by seeking other employment or otherwise, and, further, any payment or
benefit to be provided to Executive pursuant to this Agreement shall not be
reduced by any compensation or other amount earned or collected by Executive at
any time before or after the termination of Executive Employment hereunder.

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11. Miscellaneous.

         (a) Notice. Any notice or other communication required or permitted
hereunder shall be in writing and shall be deemed given when delivered in person
or other forms of delivery including certified mail, fax, etc., to the following
addresses:

                  (i)      if to the Company, to:

                           VASCO Data Security International, Inc.
                           1901 South Meyers Road, Suite 210
                           Oakbrook Terrace, IL 60181
                           Attn: Compensation Committee Chairman
                           with a copy to:

                           Forrest D. Laidley, Esq
                           339 N. Milwaukee Ave.
                           Suite 200
                           Libertyville, Illinois 60048

                  (ii)     If to Executive to:

                           To the address set forth in Exhibit A.

                  Any party may change its address for notice hereunder by
notice to the other party hereto.

         (b) Governing Law. The parties agree that this Agreement shall be
construed and governed in accordance with the laws of the State of Illinois
applicable to agreements made and to be performed entirely within such state.

         (c) Binding Effect. This Agreement shall be binding upon and incur to
the benefit of the parties hereto and their respective heirs, legal
representatives, executors, administrators, successors and assigns.

         (d) Counterparts. This Agreement may be executed simultaneously in one
or more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

         (e) Entire Agreement. This Agreement represents the entire agreement
and understanding of the parties hereto with respect to the matters set forth
herein. This Agreement supersedes all prior negotiations, discussions
correspondence, communications, understandings and agreements between the
parties, written or oral, relating to the subject matter of this Agreement. This
Agreement may be amended, superseded, canceled, renewed, or extended and the
terms hereof may be waived, only by a written instrument signed by the parties
hereto or, in the case of a waiver, by the party waiving compliance.

         (f) Waivers. No delay on the part of any party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof. Nor shall any
waiver on the part of any party of any such right, power or privilege hereunder,
nor any single or partial exercise of any right, power or privilege hereunder,
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder.

         (g) Headings. The headings in this Agreement are inserted for
convenience only and are not to be considered in the interpretation or
construction of the provisions hereof.

         (h) Arbitration. Except for any claim or dispute which gives rise or
could give rise to equitable relief under this Agreement, at the request of the
Executive any disagreement, dispute, controversy or claim arising out of or
relating to this Agreement or the breach hereof shall be settled exclusively and
finally by arbitration. The arbitration shall be conducted in accordance with
such rules and before such arbitrator as the parties shall agree and if they
fail to so agree within 15 days after demand for arbitration, such arbitration
shall be conducted in accordance with the Commercial Arbitration Rules of the
American Arbitration Association (hereinafter referred to as "AAA Rules"). Such
arbitration shall be conducted in Chicago, Illinois, or in such other city as
the parties to the dispute may designate by mutual consent. The arbitral
tribunal shall consist of three arbitrators (or such lesser number as may be
agreed upon by the parties) selected according to the procedure set forth in the
AAA Rules in effect on the date hereof and the arbitrators shall be empowered to
order any remedy which is appropriate to the proceedings and issues presented to
them. The chairman of the arbitral tribunal shall be appointed by the

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American Arbitration Association from among the three arbitrators so selected.
Any party to a decision rendered in such arbitration proceedings may seek an
order enforcing the same by any court having jurisdiction.

         (i) No Strict Construction. The language used in this Agreement will be
deemed to be the language chosen by the Executive and the Company to express
their mutual intent, and no rule of strict construction will be applied against
the Executive or Company.

         IN WITNESS WHEREOF, the Company and Executive have signed this
Agreement as of the day and year written above.

                                   VASCO Data Security International, Inc.

                                   By:
                                      ------------------------------------------
                                            T. Kendall Hunt
                                        Its:      CEO

                                   By:__________________________________
                                            CLIFFORD K. BOWN

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                     VASCO Data Security International, Inc.
                              EMPLOYMENT AGREEMENT

                                    EXHIBIT A

Address: Clifford K. Bown
                  1035 Sheringham Dr.
                  Naperville, IL  60565

Salary:  $150,000 annualized                         Effective:  January 1, 2003

Title:            Chief Financial Officer

         Executive will direct the financial operations of the Company
         worldwide, including financial reporting centers in Oakbrook Terrace,
         Illinois, Brussels, Belgium and operations in Australia and Singapore.
         He will be responsible for all accounting, treasury, investor
         relations, SEC reporting and compliance, financial controls, capital
         creation, Edgar reporting and compliance, IPO and secondary offerings,
         and other financial matters. He will participate in the senior
         management team that governs the Company's operations. Executive will
         follow the rules set out by the Sarbanes-Oxley Act of 2002, and will
         manage the Company in an honest and trustworthy manner. Executive will
         also be charged with communicating clearly and truthfully with
         investors, analysts, the press, and other individuals and institutions.

Executive Leaves Without a Change of Control:

<TABLE>
<S>                                                                             <C>     <C>
1.  Terminated by the Company without Cause:
    ----------------------------------------
         Severance                                                              Yes     12 months
         Non-compete                                                            Yes     12 months

2.  Terminated by the Company with Cause:
    -------------------------------------
         Severance                                                              No      0 months
         Non-compete                                                            Yes     3 months

3.  Executive quits without Good Reason:
    ------------------------------------
         Severance                                                              Yes     0 months
         Non-compete                                                            Yes     3 months

4.  Executive quits with Good Reason:
    ---------------------------------
         Severance                                                              Yes     12 months
         Non-compete                                                            Yes     12 months

Executive Leaves In The Event of a Change of Control:

1.  Terminated
    -----------
         Severance                                                              Yes     12 months
         Non-compete                                                            Yes     12 months

2.  Executive quits for Good Reason:
    --------------------------------
         Severance                                                              Yes     12 months
         Non-compete                                                            Yes     12 months
</TABLE>

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Severance & Non-compete:

Severance is meant to provide the executive with a reasonable period of time in
which to find new employment. So long as Severance continues, the executive is
expressly prohibited from joining a firm that is competitive to the Company.
After the Severance period is complete, and through the last month of the
Non-compete period, the executive is prohibited from contacting in any manner, a
customer or prospect of the Company that existed at the time of the executive's
departure from the Company. If there is no Severance, for the defined
Non-compete period from the executive's separation from the Company, the
executive is prohibited from contacting in any manner, a customer or Prospect of
the Company that existed at the time of the executive's departure from the
Company. A Prospect is defined as an organization that is listed on the
Company's forecasting reporting system at the time of the executive's separation
from the Company.

                                       9<PAGE>

                                                                   EXHIBIT 10.53

                            INDEMNIFICATION AGREEMENT

                  THIS INDEMNIFICATION AGREEMENT ("Agreement") is entered into
as of the ____ day of March, 2003, by and among T. Kendall Hunt ("Hunt") and
VASCO Data Security International, Inc., a Delaware corporation ("VASCO").

                                R E C I T A L S :

                  A. As required by that certain Convertible Loan Agreement,
dated August 4, 1997, by and among VASCO and Banque Paribas Belgique ("Banque
Paribas") (as amended and restated as of August 7, 2001, the "Loan Agreement"),
Hunt entered into that certain Pledge Agreement, dated July 15, 1997 (the
"Pledge Agreement").

                  B. Pursuant to the Pledge Agreement, Hunt granted to Banque
Paribas a first lien on and a first and prior security interest in and right of
set off against 1,416,666 shares of VASCO common stock (the "Original Pledged
Shares") as security for the payment to Banque Paribas by VASCO of its
obligations under the Loan Agreement.

                  C. The rights granted to Banque Paribas under the Pledge
Agreement are only effective in the event of a default by VASCO under its Loan
Agreement with Banque Paribas.

                  D. The Pledge Agreement requires that, throughout the duration
of the Loan Agreement, the market value of the shares of VASCO common stock
pledged thereunder be equal to at least 125% of $3,400,000.

                  E. As successor to Banque Paribas, Dexia Banque Belgique S.A.
(the "Lender") has notified Hunt that the current value of the Original Pledged
Shares is insufficient to meet the requirements of the Pledge Agreement and that
Hunt is required to pledge an additional 5,120,000 shares of VASCO common stock
(the "Additional Pledged Shares" and, with the Original Pledged Shares, the
"Pledged Shares") under the terms of the Pledge Agreement.

                  F. Hunt desires to pledge the Additional Pledged Shares to
Lender on the condition that VASCO provide Hunt with certain indemnification
obligations as more specifically set forth herein.

                  G. VASCO acknowledges its responsibility to comply with the
terms of the Loan Agreement and desires to provide Hunt with certain
indemnification obligations, that would only be effective in the event of a
default by VASCO under the terms of the Loan Agreement, as more specifically set
forth herein.

                  NOW, THEREFORE, in consideration of foregoing recitals, which
are incorporated herein by this reference, and of the premises and mutual
covenants herein contained, and intending to be legally bound, the parties
hereto agree as follows:

                                       1
<PAGE>

              1.  Indemnification.

                  a. VASCO shall indemnify Hunt from and against any claim,
demand, controversy, dispute, cost, loss, damage, expense, judgment and/or
liability incurred by or imposed upon Hunt as a result of any action by the
Lender with respect to the Pledged Shares, including, without limitation,
Lender's sale or other disposition of the Pledged Shares (the
"Indemnification").

                  b. VASCO and Hunt agree that the Indemnification shall be
satisfied, if at all, by means of a payment schedule commercially reasonable to
VASCO and mutually agreeable to both VASCO and Hunt after good faith negotiation
between the parties.

                  2. Governing Law. THIS AGREEMENT IS INTENDED TO TAKE EFFECT AS
A SEALED INSTRUMENT AND SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO CONFLICTS-OF-LAW
PRINCIPLES.

                  3. Notice. Except as otherwise provided herein, all notices,
requests and demands to or upon a party hereto, to be effective, shall be in
writing and sent in the manner and to the addresses set forth on the signature
page of this Agreement.

                  4. Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts and by
means of facsimile, each of which when so executed shall be deemed to be an
original and shall be binding upon all parties, their successors and assigns,
and all of which taken together shall constitute on and the same agreement.

                  5. Successors and Assigns. This Agreement shall be binding
upon and shall inure to the benefit of the successors or assigns of VASCO and
Hunt and shall constitute a continuing agreement, applying to all future as well
as existing transactions between VASCO and Hunt, or their successors and
assigns.

                  6. Entire Agreement. This Agreement represents the entire
agreement between the parties with respect to the subject matter hereof. Any
amendment or other modification of this Agreement shall be effective only if in
a writing signed by both of the parties hereto.

                  7. Miscellaneous. The headings of each section of this
Agreement are for convenience only and shall not define or limit the provisions
thereof. This Agreement and all rights and obligations hereunder shall be
binding upon VASCO and its successors and assigns, and shall inure to the
benefit of Hunt and his successors and assigns. If any term of this Agreement
shall be held to be invalid, illegal or unenforceable, the validity of all other
terms hereof shall in no way be affected thereby, and this Agreement shall be
construed and be enforceable as if such invalid, illegal or unenforceable term
had not been included herein. VASCO acknowledges receipt of a copy of this
Agreement.

                                       2

<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this
Indemnification Agreement as of the date and year first above written.

                               VASCO DATA SECURITY INTERNATIONAL, INC.

                               By:_____________________________________
________________________       Name:
T. Kendall Hunt                Title:
[ADDRESS]                      1901 South Meyers Road
                               Suite 210
                               Oakbrook Terrace, Illinois  60181
                               Fax:

                                       3

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