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                      EMPLOYMENT AGREEMENT
                               OF
                         STEVEN J. BLAD

       THIS   EMPLOYMENT  AGREEMENT  of  STEVEN  J.  BLAD   (this
"Agreement") is entered into this 10 of August 1999, and for  all
intents  and purposes is effective as of the 1st day of  January,
2000   (the  "Effective   Date")  by  and  between  CASINOVATIONS
INCORPORATED,   a   Nevada  corporation   (the   "Company")   and
STEVEN J. BLAD (the "Employee").

     The parties recite that:

     (a)  Employee is currently the President and Chief
Executive Officer  of  the Company, and the Company desires
to  retain  the services of said Employee under the terms
and conditions of  this Agreement

     (b)  The Employee and the Company will receive benefits from
this Agreement, and as such, each agrees to be bound under the
terms and conditions of this Agreement, including the
non-competition and non-disclosure contained herein.

      (c)   The Company desires the knowledge, skills and
ability of the Employee for the benefit of the Company.

      (d)   The Employee wishes to be retained by the Company
in accordance with the terms of this Agreement.

      (e)   The  Employee recognizes the legitimate need of the
Company for protection of its confidential information.

      (f)   The Company recognizes and acknowledges the value of
the Employee's services and deems it necessary and desirable to
retain the Employee's services for the period herein described.

     NOW  THEREFORE, in consideration of the mutual promises  set
forth herein, the Company and the Employee  agree as follows:

     1.  EMPLOYMENT

     The Company hereby retains the Employee upon the terms and
conditions hereinafter set forth, and the Employee hereby accepts
said terms and conditions.

     2.  TERM AND RENEWAL

     Except  as otherwise provided, this Agreement shall commence
as  of  January  1, 2000, and continue for a term  of  three  (3)
years, subject to the early termination provisions of Article  8.
At  the expiration date of this Agreement, it shall be considered
renewed  for regular successive one (1) year terms unless  either
party  submits a notice of termination thirty (30) days prior  to
the end of the preceding period.

     3.  DUTIES

     The Company  hereby retains the Employee  as  President  and
Chief  Executive,   and   the   Employee   hereby   promises   to
perform  the  duties   related  thereto  and   to   perform  such
other  duties   as   the   Company   may   from   time   to  time

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assign. As  directed by the appropriate representative(s) of  the
Company,   the  Employee  shall  also  render  services  for  and
perform  duties   for  entities related to the  Company  and  for
persons  or entities  having a contractual relationship with  the
Company  requiring  the Company  to provide  such  services.  The
Employee  shall  perform   all of his duties  at  such  place  or
places  and  at  such  times as the Company shall in  good  faith
require  and as the interest, needs, business, or opportunity  of
the  Company  shall require.  The Company, through its  Board  of
Directors,  retains  the right to supervise the Employee  in  the
performance of his duties.

     4.  TIME AND EFFORTS OF EMPLOYEE

     So long  as this Agreement continues in effect, the Employee
promises  to  devote  his  exclusive time  and  energies  to  the
business  affairs  of  the  Company  necessary  to  achieve   the
business  objectives  of  the  Company;  use  his  best  efforts,
skills,  and abilities to promote the Company's interest; perform
the  duties  described  in Article 3 of this  Agreement;  and  to
perform  such  other  duties as may be assigned  to  him  by  the
Company.


     5.  COMPENSATION AND BENEFITS

     5.1 Compensation.   For  all  services   rendered   by   the
Employee  under  this  Agreement and the  Employee's  obligations
under  Articles  6 and 7 herein, Employee will be compensated  as
follows:

         (a)  Base   Salary.   The   Employee  shall   receive  a
"Base  Salary"  for each calendar month under the  term  of  this
agreement   of   Twenty  Three  Thousand  Five  Hundred   Dollars
($23,500.00) through December 31, 2000, or until such time  as  a
new  Base Salary is negotiated. The Base Salary shall be reviewed
on  an  annual  basis and shall be payable in equal  semi-monthly
installments on the first and fifteenth of each month.

         (b)  Stock  Options.  In  addition  to  the Base Salary,
Employee  shall receive "Stock Options" to purchase  up  to  four
hundred  thousand (400,000) shares of the Company's common  stock
("Shares") under the following terms and conditions:

                   (i) Upon the Effective Date of this Agreement,
          the  Employee shall have a vested right to  acquire  up
          to   one  hundred  thousand  (100,000)  Shares  at  Two
          Dollars and Fifty Cents ($2.50) per Share.

                   (ii)   Upon   the  Employee   fulfilling   his
          obligations  and  the Company reaching  its  goals  for
          2000,  as established by the Board of Directors of  the
          Company,  the Employee shall have the right to  acquire
          up  to  an  additional one hundred  thousand  (100,000)
          Shares  at  Two  Dollars and Fifty  Cents  ($2.50)  per
          Share.  The  determination of whether the Employee  has
          met  his  obligations and the Company has  reached  its
          goals  shall be made at the discretion of the Company's
          Board  of Directors. The Employee shall be entitled  to
          a  meeting with the Board of Directors during  January,
          2001,  to  discuss the option to be paid hereunder,  if
          any.   The  Stock  Options  to  be  issued  under  this
          subparagraph  shall  be  vested  in  the  Employee   on
          January  31,  2001,  subject to  the  requirement  that
          Employee  continue to be President and Chief  Executive
          Officer of the Company on January 31, 2001.

                   (iii)   Upon  the  Employee   fulfilling   his
          obligations  and  the Company reaching  its  goals  for
          2001,  as established by the Board of Directors of  the
          Company,  the Employee shall have the right to  acquire
          up  to  an  additional one hundred  thousand  (100,000)
          Shares  at  Two  Dollars and Fifty  Cents  ($2.50)  per
          Share.  The  determination of whether the Employee  has
          met  his  obligations and the Company has  reached  its
          goals  shall be made at the discretion of the Company's
          Board  of Directors. The Employee shall be entitled  to
          a  meeting with the Board of Directors during  January,
          2002,  to  discuss the option to be paid hereunder,  if
          any.   The  Stock  Options  to  be  issued  under  this
          subparagraph  shall  be  vested  in  the  Employee   on
          January  31,  2002,  subject to  the  requirement  that
          Employee  continue to be President and Chief  Executive
          Officer of the Company on January 31, 2002.

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                   (iv)   Upon   the  Employee   fulfilling   his
          obligations  and  the Company reaching  its  goals  for
          2002,  as established by the Board of Directors of  the
          Company,  the Employee shall have the right to  acquire
          up  to  an  additional one hundred  thousand  (100,000)
          Shares  at  Two  Dollars and Fifty  Cents  ($2.50)  per
          Share.  The  determination of whether the Employee  has
          met  his  obligations and the Company has  reached  its
          goals  shall be made at the discretion of the Company's
          Board  of Directors. The Employee shall be entitled  to
          a  meeting with the Board of Directors during December,
          2002,  to  discuss the option to be paid hereunder,  if
          any.   The  Stock  Options  to  be  issued  under  this
          subparagraph  shall  be  vested  in  the  Employee   on
          December  31,  2002,  subject to the  requirement  that
          Employee  continue to be President and Chief  Executive
          Officer of the Company on December 31, 2002.

                   (v) The Stock Options must be exercised within
          five (5) years from the date the Employee's rights  are
          vested  hereunder.  The Shares will  be  issued  within
          thirty  (30)  days  after  the  Employee  notifies  the
          Company  of  his intent to exercise the  options  under
          this  Agreement and tenders the purchase price  to  the
          Company.  The  Company offers no  warranty  as  to  the
          tradability of the Shares or as to whether such  Shares
          will  be  registered with the Securities  and  Exchange
          Commission.

                   (vi) If  the   Company  is  to  be  sold,  the
          portion  of  the  Stock  Options  granted  pursuant  to
          paragraph  5.1 (b)(i)-(iv) of this Agreement which have
          not  yet  vested shall vest in the Employee thirty (30)
          days prior to such sale.

                   (vii) If the Company is sold, all of the Stock
          Options  granted  to  Employee by virtue  of  paragraph
          (vi)  must  be  exercised as of the last  business  day
          prior  to the sale of the Company, unless Employee  and
          the purchaser of the Company agree otherwise.

                   (viii)  For  purposes  of  paragraph  5(b)(vi)
          hereof,  the  Board  of  Directors   shall  notify  the
          Employee in writing of (1) the impending sale, (2)  the
          right  of  the Employee to exercise the Stock  Options,
          and  (3) the terms and conditions of the proposed  sale
          of  the  Company. For purposes of this  Agreement,  the
          Company  shall be deemed sold if substantially  all  of
          its  assets  are sold, including patents and  goodwill,
          or  the  Company's stock is sold or transferred causing
          the  person  or  persons  who currently  have  majority
          control  of the Company to be the beneficial owners  of
          less  than  twenty (20%) of the issued and  outstanding
          stock of the Company. This Paragraph does not apply  to
          transfers   of  stock  of  the  Company,  (1)   by   an
          assignment  to a revocable living trust  in  which  the
          holder  is and remains a trustee and a beneficiary,  or
          (2)  by reason of death of the holder. It is within the
          Employee's  discretion to exercise  the  Stock  Options
          prior  to  the proposed sale. Any Stock Options  vested
          in   this  subparagraph  shall  remain  vested  in  the
          Employee, whether or not they are exercised before  the
          sale, under the terms of subparagraph (v).

     5.2 Payment  of    Compensation.     All     payments   made
hereunder  shall  be   made  to the Employee, unless the Employee
notifies the Company otherwise.

     5.3 Other  Benefits.   The  Employee  shall   be entitled to
participate  on a reasonable basis in any deferred  compensation,
medical  reimbursement, pension, profit sharing, thrift, savings,
vacation,  group  insurance, or other plan  or  program,  and  to
receive any other benefits for which he is eligible and which the
Company  may provide for him or for its employees generally.  The
Employee  is  entitled to a car allowance of  Seven  Hundred  and
Fifty Dollars ($750.00) per month.

     6.  CONFIDENTIAL INFORMATION

     6.1 Disclosure of Confidential Information.

              (a)  Definition.  "Confidential  Information" shall
mean and  include: (i) all records of the accounts  of customers,
route   books,   customer   lists,   and   any  other records and
books  relating  in   any   manner   to   the   customers  and/or

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suppliers  of the Company (whether such records, books, or  lists
are  prepared  by  the  Employee   or  otherwise  come  into  the
possession   or   use   of  the  Employee);  (ii)   any   product
information,    technical   data,    know-how,    specifications,
processes,  drawings, sketches, formulas, computations,  and  any
other  information  of  any kind whatsoever, whether  written  or
not, concerning any  process, manufacture, composition of matter,
plant,  design,  idea,  method,  system, or  plan  in  which  the
Company  has  a  possessory interest and which becomes  known  to
Employee;   and   (iii)  any  accounting,   sales,   advertising,
marketing  or management information, methods or techniques,  any
business  plans,  any  computer  programs  and  routines  of  the
Company  and  any  other  information  of  any  kind  whatsoever,
whether  written or not, concerning, directly or indirectly,  the
Company, its plans,  programs or operations, which information is
not generally  known in the businesses or industries in which the
Company  is  or  may become engaged during Employee's  period  of
employment  with  the  Company  or  during   the  term  of   this
Agreement.

              (b)   Restriction    on   use.    Any  Confidential
Information  received   or   developed by Employee shall be  used
only  in  the Employee's  conduct  of  Company's  business.  Such
Confidential  Information  shall  not be used by Employee for any
other purpose unless  otherwise directed or authorized in writing
by the  Board of Directors.    The Employee acknowledges that the
Company's  primary   assets   consist  of its gaming products and
accessories.   Any  unauthorized  disclosure  of  the  design  or
marketing  of  such  products  by the Employee shall violate this
Article.

              (c)  Protection  of  Confidential  Information. The
Company  and  the  Employee  expressly  recognize and acknowledge
that  any Confidential  Information disclosed to or developed  by
Employee  will   not, at any time either during or after the term
of  this  Agreement,   in   any   manner,  either   directly   or
indirectly,  be  divulged,   disclosed,   or communicated to  any
person,  firm or corporation, or any other business entity by the
Employee, nor shall the  Employee use for his own benefit  or for
any  other purpose  than the exclusive benefit  of  the  Company,
its    subsidiaries,    successors,   or   assigns,  Confidential
Information  or any  information  whatsoever  concerning  matters
affecting  or  relating  to the business of the Company which the
Employee  knows  or  has  reason  to  know  would be valuable  to
competitors  or  potential competitors of the Company, including,
but  not  limited  to,  Confidential  Information or  information
relating to the Company's relationships with actual or  potential
customers  or  suppliers and to the needs and requirements of any
such actual or potential  customers.  Furthermore, but not by way
of  limitation of the foregoing, the Employee shall not: (i) make
known  to  any firm, person or corporation the names or addresses
of any of  the customers  of the Company or any other information
pertaining  to  them;   or (ii) call on, solicit, or take away or
attempt to call on, solicit, or take away any of the customers of
the  Company  on whom  the Employee called or with whom he became
acquainted during his tenure with the Company, either for himself
or for any other person, firm or corporation.

     6.2 Books and Records. The Employee further promises that he
shall  not  without  the prior written approval of  the  Company,
make  copies  of  any  books,  drawings, documents,  records,  or
other   written   or   printed,  photographic,  encoded,   taped,
electrostatically  or   electromagnetically   encoded   data   or
information  of   whatever  nature  (the  "Documents")   of   the
Company;  that  he shall not, without the prior written  approval
of  the  Company, remove  any of the foregoing from the  premises
of  the  Company,  and  that he  shall  not,  without  the  prior
written  approval  of  the   Company,  make  available  to  third
parties  access  to said Documents of the Company.  The  Employee
agrees  that  all  records  and  books  relating  in  any  manner
whosoever to  the customers (whether actual or potential) of  the
Company,  whether  prepared by  the Employee or otherwise  coming
into  his  possession,  shall be the exclusive  property  of  the
Company  regardless of who actually  purchased the original  book
or  record.  All   such  books and records shall  be  immediately
returned  to the Company by the Employee upon any termination  of
this  Agreement.  If the Employee purchases any original book  or
record,  he  shall immediately  inform the Company,  which  shall
immediately reimburse the Employee.

     6.3 Limitation. Nothing contained in this Article or in  any
other  part of this Agreement shall restrict the ability  of  the
Employee to make, with the written consent of the Company and  in
the  ordinary course of his employment, such disclosures  as  may
be  necessary  or  appropriate  to the  effective  and  efficient
discharge of his duties to the Company.

     6.4 Term.  Notwithstanding  any   other  provision  of  this
Agreement,  the  provisions of this Article 6 shall  continue  in
full force and effect following the expiration or termination  of
this Agreement.

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     7.  EMPLOYEE'S COVENANT NOT TO COMPETE

     7.1 Covenant Not to Compete.

         (a)  General.   The  Company and the Employee  expressly
recognize  and  acknowledge that the  Company  is  engaged  in  a
business which is highly competitive, that any knowledge  of  the
Company's  Confidential  Information or  business  affairs  would
give  a  competitor or potential competitor an unfair competitive
advantage  over  the  Company,  that  consulting  or  employment,
directly or indirectly, of the Employee anywhere in the  area  in
which  the  Company  conducts its business  (including,  but  not
limited  to  gaming  and  non-gaming  security  and  productivity
equipment  and products) would give to such competitor an  unfair
competitive  advantage, and that the Employee possesses  valuable
skills  and knowledge. In recognition of the aforementioned,  the
Employee  and  the  Company  hereby  expressly  agree  that   the
restrictions  on  competition by the Employee contained  in  this
Article  7 are reasonable, will not overburden the Employee,  and
are in the best interests of both the Employee and the Company.

         (b)  Time Period and Area Covered. The Employee promises
that,  during  the  term  of  this  Agreement,  as  set  forth in
Article  2  hereof,  and  for a period of six (6) years after the
expiration or termination of this Agreement, he shall not, either
directly  or  indirectly, engage in competition with the Company,
or with any subsidiary,  successor  or  appointee of the Company,
as constituted during  the  term  of  this  Agreement  as  of his
resignation,  departure,  discharge  or  termination   with   the
Company  in  Nevada, and within a fifty (50) mile radius  of  any
other:

                   (i)  place   of   business   operated  by  the
      Company; or (ii) location, establishment or business  where
      the  equipment,  product, or technology of the  Company  is
      operating  as of such date. The Employee acknowledges  that
      the  Company's  business is national and  international  in
      scope  and that the solicitation of the Company's  domestic
      or  international clients in competition with  the  Company
      is a violation of this Agreement.

         (c)  Affiliations Covered. The Employee further promises
that,  during  the  term  of  this  Agreement,  as  set  forth in
Article  2  hereof   and  for a period of six (6) years after the
expiration or  other termination of this Agreement, he shall  not
engage,  directly  or  indirectly,  as  a   proprietor,  partner,
shareholder, director,  officer, employee, agent, or in any other
capacity  or  manner  whatsoever,   in   any   business  activity
competitive  with  the  business  of  the  Company   or   of  any
subsidiary, successor or appointee of the Company, as constituted
during his employment.

         (d)  Board   of  Directors Approval. Either or  both  of
the provisions contained in Subsections (b) and (c) above may  be
waived  at any time in writing by the Board of Directors  of  the
Company,  in  its  sole  discretion.  No  such  waiver  shall  be
considered  as a waiver of any other term, covenant or  provision
of  this  Agreement, nor shall it be considered a waiver  of  any
subsequent action by the Employee.

     7.2 Limitation.  Nothing  contained  in this Article 7 shall
prevent the Employee from purchasing or causing or permitting  to
be  purchased  for his direct or indirect benefit, securities  of
any  corporation  whose securities are regularly  traded  on  any
national  or  regional  securities exchange;  provided,  however,
that such purchase must not, without the written approval of  the
Company,  result  in the direct or indirect beneficial  ownership
of  more  than  one percent of any outstanding  class  of  equity
securities  of any corporation engaged directly or indirectly  in
any  trade  or business activities competitive with that  carried
on by the Company.

     8.  TERMINATION

     8.1 Grounds  for Termination. This Agreement shall terminate
as it  relates  to  the  Employee  upon the first to occur of the
following events:

         (a)  The death of the Employee;

         (b)  Immediately upon  five (5) days written notice from
the  Company  to  the   Employee  "for  cause."  "For  cause"  is
defined as:

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                   (i)  a  breach  of  the  terms  and conditions
          of  this Agreement by the Employee (other than a breach
          described  in  subparagraph 8.1(b)(ii)  herein  below),
          including    the   performance   of   the    Employee's
          obligations   and  duties  hereunder,   which   remains
          uncured  for a period of twenty (20) days after written
          notice  by  the  Company to the Employee  of  any  such
          breach;

                   (ii)  a  breach  of  the  terms and conditions
          of   this  Agreement  by  the  Employee,  which  breach
          consists  of  dishonest or criminal  conduct,  or  such
          breach constitutes gross negligence by the Employee  in
          failing  to  perform his duties and  obligations  under
          this Agreement.

         (c)  Upon  the  passing  of  fifteen ( 15)  days   after
notice  from  the Company to the Employee of a bona fide decision
by the Company to terminate its business.

     8.2 Severance Pay.  If this Agreement is terminated for  any
reason,  other than  for a reason under Section 8.1, the  Company
shall  pay  the Employee, upon termination, severance  pay  in  a
one  time  lump sum  equal to seven (7) months of the  Employee's
Base Salary in effect at the time of severance.

     8.3 Effect  of  Termination  on  Stock  Options.   Under  no
circumstances  shall  the  Employee  be  entitled  to  any  Stock
Option,  which has not vested or  accrued prior to the Employee's
termination.

     8.4 Effect   of   Termination   on   Articles  6   and    7.
Notwithstanding  the provisions of this Article,  the  provisions
of  Articles  6 and 7  will not terminate upon the occurrence  of
an  event  described  above, but will continue in full force  and
effect  for  the  periods  described  in   those  Articles.   The
severance  pay shall constitute additional consideration for  the
enforcement of such provisions.

     9.  MISCELLANEOUS

     9.1 Assignment of Agreement. The knowledge and skills of the
Employee   are  unique, and his services bargained  for  by  this
Agreement  may  not  be delegated by the Employee  to  any  other
person.  This   Agreement shall inure to the benefit  of  and  be
binding   upon  the  Employee  and   his  testate  or   intestate
distributees,  and   the  Company,  its  successors  and  assigns
including,   without limitation, any person, partnership,  trust,
corporation  or  other  legal entity which  may  acquire  all  or
substantially  all of the Company's assets or which  may  acquire
a  controlling  interest, either  direct or  beneficial,  in  the
Company  or  with or  into which the Company may be  consolidated
or  merged.  As used in this Agreement, the term "Company", shall
include any such successor or assignee.

     9.2 Remedies.  It is agreed that any breach of Article 6  or
7  of  this  Agreement by the Employee will result in irreparable
injury  to  the  Company  and  will  authorize  recourse  by  the
Company  to  equitable  remedies, including, but not limited  to,
affirmative  or  negative  injunctive   relief.   It  is  further
agreed  that  in the event of such breach, violation, or  evasion
of  any  of the Articles hereinbefore mentioned, or of any  other
Article  herein,  the  Company  may  forthwith   terminate   this
Agreement  and  thereafter  be released from all  claims  of  the
Employee  hereunder, provided,  however, that such a  termination
shall  not  release  the  Employee  from any  warrant,  covenant,
term,  or  condition  under  Articles 6 or 7 of  this  Agreement.
Nothing  contained  herein  shall  be  deemed   to  obligate  the
Company  to  undertake  such termination, and  nothing  contained
herein  shall  be  deemed to preclude the Company  from  pursuing
any  remedy,  whether legal  or equitable, which is available  to
it  in  the  event of  any breach, violation or  evasion  of  any
Article of this Agreement.

     9.3 Enforcement  Costs.   The   prevailing  party  shall  be
entitled to all costs of enforcing this Agreement, regardless  of
whether   an  action  at  law  or  in  equity  is  commenced   or
maintained,  including  but  not  limited  to,  court  costs  and
reasonable attorneys' fees.

     9.4 Waiver of Breach.  The waiver of the breach of any  term
or  condition of this Agreement shall not be deemed to constitute
the  waiver of any other or subsequent breach of the same or  any
other terms of condition.

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     9.5 Severability.   All  terms and conditions  contained  in
this  Agreement are severable, and in the event that any of  them
shall  be held or considered to be unenforceable by any court  of
competent  jurisdiction, this Agreement shall be  interpreted  as
if  such  unenforceable  term  or  condition  was  not  contained
herein.

     9.6 Applicable Law.  This Agreement shall be governed by and
interpreted  according to the laws of the State of  Nevada.  Each
party  submits  to  the  personal  jurisdiction  of  all  courts,
whether  Federal  or State, within Nevada, and  agrees  that  any
action  pertaining to this Agreement shall be brought in a  court
in Nevada.

     9.7 Notice.  Any  notice required or permitted to  be  given
under  this Agreement shall be sufficient if in writing,  and  if
sent by registered mail to his last residence as recorded on  the
records  of the Company in the case of the Employee,  or  to  the
principal offices of the Company, in the case of the Company.

     9.8 Modification of Agreement. No waiver or modification  of
this  Agreement  or  of  any term or condition  herein  contained
shall  be  valid unless in writing and duly executed,  nor  shall
any  waiver  or modification of this Agreement not duly  executed
as  provided  herein  be deemed to be a part  of  this  Agreement
under any circumstances.

     9.9 Gender,  Number,  Etc.  Where applicable,  the  singular
includes  the  plural, the  masculine includes the feminine,  and
vice versa.

     IN   WITNESS  WHEREOF,  the   parties  have  executed   this
Agreement, delivery of which is hereby acknowledged,  as  of  the
date first above written.

                                   CASINOVATIONS INCORPORATED


                              BY:  /s/ Bob L. Smith
                                 --------------------------------
                                   Bob L. Smith
                              Its: Chairman



                                   /s/ Steven J. Blad
                                 --------------------------------
                                   Steven J. Blad