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| a.   | From      the Commencement Date through October 31, 2008, Employee shall be paid an      annual base salary of two hundred forty thousand dollars ($240,000), paid      in the same intervals as other employees of the Company; and, for fiscal      year 2007, Employee has received all bonus amounts to which he is      entitled.  Further, if employed full-time through October 31,      2008, then Employee will be eligible to receive an executive bonus in      accordance with the terms and conditions of the executive bonus program      authorized by the Board of Directors of the Company (the “Board”) for      other senior management executives of the Company for fiscal year 2008, in      a range of percentages, but with a target bonus of 50% of Employee’s base      salary, but, for fiscal year 2008, Employee is guaranteed to receive a      bonus of no less than Sixty Thousand Dollars  ($60,000). |
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| b.   | For      any subsequent year after fiscal year 2008, Employee will receive an      annual base salary of no less than his annual base salary for the      immediately prior fiscal year of this Agreement, and will also be eligible      to participate in an executive bonus program and/or in an individual      performance bonus program as authorized by the Board for said      period. |
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| c.   | Other      than the executive bonus program set forth herein, there are no other      bonus programs or amounts, including Employee’s fiscal 2007 bonus program,      applicable to Employee. |
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| d.   | At      the next regular-scheduled Board meeting after the execution hereof,      Company shall recommend to the Board that the Employee be issued 30,000      restricted stock units of the Company (the      “RSUs”).  Notwithstanding any other provision contained herein,      or in the Plan, the RSUs shall vest one-half on the second (2nd)      anniversary of the initial grant date by the Board of Directors (the      “Grant Date”) and one-half on the fourth (4th) anniversary of the Grant      Date, provided the Employee is still employed, on a full-time basis, with      the Company on each of said anniversary dates, but same may accelerate      vest under certain conditions, as set by the Board.  Future      equity grants, if any, will be at the discretion of the Board of      Directors, provided, however, that such RSUs will be treated in such a      manner as to comply with Section 409A of the  Code. |
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| e.   | Any      stock options, the RSUs, and any other equity grants (“Equity”) issued at      any time to Employee shall vest in accordance with the terms and      conditions set forth in the applicable grant by the Board, and, as may be      otherwise applicable, with any relevant terms and conditions of the      Company’s 2004 Equity Incentive Plan (the “Plan”), as amended, or any      subsequent plan, provided, however, that such RSUs will be treated in such      a manner as to comply with Section 409A of the  Code. |
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| f.   | During      the Term and provided the Employee is employed with the Company on a      full-time basis, Employee shall receive an annual golf membership      allowance in an amount not to exceed Six Thousand One Hundred Dollars      ($6,100) per year.  The golf membership allowance shall include      the golf membership fee and any golf course playing fees and cart      fees.  In the event of a termination of Employee’s full-time      employment by Company for just cause or a voluntary termination by      Employee, Employee shall reimburse the Company for the prorated portion of      the golf membership allowance remaining in the Company’s fiscal      year. |
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| g.   | Employee’s      salary is set in the expectation that Employee’s full professional time      will be devoted to Employee’s dutieshereunder. |
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| h.   | During      Employee’s employment with the Company, the Company will promptly pay or      reimburse Employee for reasonable travel and other expenses incurred by      Employee in the furtherance of or in connection with the performance of      Employee’s duties.  Such reimbursement will be in accordance      with Company policies in existence from time to  time. |
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| i.   | Notwithstanding      any other provision contained herein, Employee shall be and is an employee      “at will,” terminable at any time, with or without just cause or      notice. |
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| a.   | The      services do not interfere in any manner with the Employee’s ability to      fulfill all of his duties and obligations to the  Company. |
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| b.   | The      services are not rendered to any business that may compete with the      Company in any area of the Business or do not otherwise violate paragraph      4 hereof. |
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| c.   | The      services do not relate to any products or services, which form part of the      Business. |
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| d.   | Employee      informs and obtains the prior written consent of the Chief Executive      Officer of the Company. |
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| a.   | Directly      or indirectly own, manage, operate, participate in, consult with or work      for any business that is engaged in the Business anywhere in the United      States or Canada.  Notwithstanding the foregoing, it is      understood and agreed that Employee may hold up to one percent (1%) of the      shares of any publicly tradedcompany. |
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| b.   | Either      alone or in conjunction with any other person, partnership or business,      directly or indirectly, solicit, hire, or divert or attempt to solicit,      hire or divert any of the Employees, independent contractors, or agents of      the Company (or its affiliates or successors) to work for or represent any      competitor of the Company (or its affiliates or successors), or to call      upon, on behalf of a competitor of or to the Business, any of the      customers of the Company (or its affiliates or  successors). |
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| c.   | Directly      or indirectly provide any services to any person, company or entity, which      is engaged in the Business anywhere in the United States or      Canada. |
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| a.   | Employee      shall fully and promptly disclose to the Company all inventions,      discoveries, software and writings that Employee may make, conceive,      discover, develop or reduce to practice either solely or jointly with      others during Employee’s employment with the Company, whether or not      during usual work hours.  Employee agrees that all such      inventions, discoveries, software and writing shall be and remain the sole      and exclusive property of the Company, and Employee hereby agrees to      assign, and hereby assigns all of Employee’s right, title and interest in      and to any such inventions, discoveries, software and writings to the      Company.  Employee agrees to keep complete records of such      inventions, discoveries, software and writings, which records shall be and      remain the sole property of the Company, and to execute and deliver,      either during or after Employee’s employment with the Company, such      documents or assignments as the Company shall deem necessary or desirable      to obtain such letters patent, utility models, inventor’s certificates,      copyrights, trademarks or other appropriate legal rights of the United      States and foreign countries as the Company may, in its sole discretion,      elect, and to vest title thereto in the Company, its successors, assigns,      or nominees.  If, after request, Employee fails to promptly      execute any such documents or assignments, Employee hereby appoints the      Company as its attorney-in-fact to execute, on Employee’s behalf and in      Employee’s name, any such documents or  assignments. |
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| b.   | “Inventions,”      as used herein, shall include inventions, discoveries, improvements, ideas      and conceptions, developments and designs, whether or not patentable,      tested, reduced to practice, subject to copyright or other rights or forms      of protection, or relating to data processing, communications, computer      software systems, programs andprocedures. |
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| c.   | Employee      understands that all copyrightable work that Employee may create while      employed by the Company is a “work made for hire,” and that the Company is      the owner of the copyright therein.  Employee hereby assigns all      right, title and interest to the copyright therein to the      Company. |
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| d.   | Employee      has no inventions, improvements, discoveries, software or writings useful      to the Company or its subsidiaries or affiliates in the normal course of      business, which were conceived, made or written prior to the date of this      Agreement. |
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| e.   | Employee      will not publish or otherwise disclose, either during or after Employee’s      employment with the Company, any published or proprietary or confidential      information or secret relating to the Company, the Business, the Company’s      operations or the Company’s products or services.  Employee will      not publish or otherwise disclose proprietary or confidential information      of others to which Employee has had access or obtained knowledge in the      course of Employee’s employment with the Company.  Upon      termination of Employee’s employment with the Company, Employee will not,      without the prior written consent of the Company, retain or take with      Employee any drawing, writing or other record in any form or nature which      relates to any of the foregoing.  Notwithstanding the foregoing,      Employee shall have the right, as reasonably necessary, to retain copies      of this Agreement, any employee stock option and restricted stock      agreements, and any other documents, information or materials related to      Employee’s compensation or benefits from the Company, in order to      confidentially review such items with Employee’s professional advisors or      immediate family members.  In addition, and subject to the      provisions of paragraph 22 hereof, nothing in this paragraph 5(e) or in      paragraph 5(f) below shall be construed to prevent or preclude Employee      from responding to legal process or testifying  truthfully. |
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| f.   | Employee      understands that Employee’s employment with the Company creates a      relationship of trust and confidence between Employee and the      Company.  Employee understands that Employee may encounter      information in the performance of Employee’s duties that is confidential      to the Company or its customers.  For the Term hereof, and until      the information falls into the public domain, Employee agrees to maintain      in confidence all information pertaining to the Business or the Company to      which Employee has access including, but not limited to, information      relating to the Company’s products, inventions, trade secrets, know how,      systems, formulas, processes, compositions, customer information and      lists, research projects, data processing and computer software      techniques, programs and systems, costs, sales volume or strategy,      pricing, profitability, plans, marketing strategy, expansion or      acquisition or divestiture plans or strategy and information of similar      nature received from others with whom the Company does      business.  Employee agrees not to use, communicate or disclose      or authorize any other person to use, communicate or disclose such      information orally, in writing, or by publication, either during      Employee’s employment with the Company or thereafter except as expressly      authorized in writing by the Company unless and until such information      becomes generally known in the relevant trade to which it relates without      fault on Employee’s part, or as required by law.  Subject to the      foregoing, Employee shall have the rights set forth in the final two      grammatical sentences of paragraph 5(e)above. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| a.   | Employee’s      employment by the Company is “at will;” therefore, subject to the terms      and conditions hereof, the Company may terminate Employee’s full-time      employment at any time either with or without just cause.  In      the event of any termination of Employee’s full-time employment with the      Company without just cause, then Employee will remain bound to the      covenants not to compete and confidentiality obligations of paragraphs 4      and 5 of this Agreement, according to their terms, and, provided Employee      executes the Release (as defined in paragraph 6(a)(v), each one of the      following shall apply, subject to Section 23  hereof: |
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| b.   | For      purposes hereof, any of the following acts or events shall, at Employee’s      option, constitute a termination without just cause under this paragraph 6      (provided, however, that such termination occurs on or within two years of      such acts or events): |
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| a.   | dishonesty      as to a matter which is materially injurious to the    Company; |
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| b.   | the      commission of a willful act or omission intended or likely to materially      injure the business of the Company; |
|----------------|----------------------------------------------------------------------------------------------------------------------------|

| c.   | a      violation of any of the material provisions of Sections 4 and/or 5      hereof; |
|----------------|----------------------------------------------------------------------------------------|

| d.   | a      determination in good faith by the CEO or the President that the Employee      has failed to make a good faith effort to fully perform his duties as      assigned to the Employee, which failure is not remedied by the Employee      within fifteen (15) days following written notice stating such alleged      failure; |
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| e.   | the      Employee is repeatedly inattentive to his duties pursuant to this      Agreement and has received written notice of same and, if curable, has      failed to so cure within 15 days of such written notice;  or |
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| f.   | the      Employee fails or is unable to become licensed in any jurisdiction where      licensing is required, or once licensed, any loss or suspension      thereof. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | In      the event Employee voluntarily terminates his employment with the Company,      Employee will remain bound under the provisions of paragraphs 4 and 5      hereof, but will not be entitled to receive any compensation and benefits      following his termination of employment except for any accrued but unpaid      salary or other benefits required bylaw. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Voluntary      termination means an intentional termination by the Employee without good      reason and without pressure by the Company; and further, provided that      there was not a material breach of this Agreement by the Company, prior to      any such termination that remainsuncured. |
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| a.   | During      any period of time wherein the Company is paying any base salary to      Employee, whether during the Term hereof or during any time after the      termination or expiration of this Agreement, and for a period of three (3)      years thereafter, Employee shall not disparage or otherwise make any      negative comments about the Company, its policies, products, Employees or      management.  The Company may enforce these non-disparagement      provisions by resort to injunctive relief as set forth in paragraph 13, in      addition to any other damages that it may be entitled to under this      Agreement or otherwise at law.  Notwithstanding the foregoing,      nothing in this paragraph 22(a) shall preclude Employee from fully      pursuing any legitimate claims he may have or from testifying truthfully      in an arbitration or other legalproceeding. |
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| b.   | Employee      agrees to fully cooperate with the Company and its affiliates during the      entire scope and duration of any litigation or administrative proceedings      involving any matters with which Employee was involved during Employee's      employment with the Company.  Such cooperation shall be subject      to the reasonable demands of any subsequent employment undertaken by      Employee, and Company shall cover any reasonable out-of-pocket expenses of      Employee in so cooperating, excluding, any attorney’s fees incurred by      Employee, unless said attorney’s fees are expressly authorized, permitted,      or required under this paragraph22. |
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| a.   | This      Agreement is intended to comply with Section 409A of the Code (to the      extent applicable) and, to the extent it would not adversely impact the      Company, the Company agrees to interpret, apply and administer this      Agreement in a manner necessary to comply with such requirements and      without resulting in any diminution in the value of payments or benefits      to the Employee. Notwithstanding any other provisions of this Agreement,      the Company does not guarantee that payments will be exempt or comply with      Section 409A of the Code, nor will the Company indemnify, defend or hold      harmless Employee with respect to the tax consequences of any such      failure. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | It      is intended that (i) each installment of the payments provided under this      Agreement is a separate “payment” for purposes of Section 409A of the      Code, (ii) that the payments satisfy, to the greatest extent possible, the      exemptions from the application of Section 409A of the Code provided under      Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(9)(iii), and      1.409A-1(b)(9)(v) and (iii) all amounts set forth in Section 6 shall be      payable only upon a termination of the Employee’s employment that      constitutes a “separation from service” within the meaning of Treasury      Regulation 1.409A-1(h). |
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| c.   | Notwithstanding      anything to the contrary in this Agreement, if the Company determines (i)      that on the date the Employee’s employment with the Company terminates,      the Employee is a “specified employee” (as such term is defined under      Treasury Regulation 1.409A-1(i)(1)) of the Company and (ii) that any      payments to be provided to the Employee pursuant to this Agreement are or      may become subject to the additional tax under Section 409A(a)(1)(B) of      the Code or any other taxes or penalties imposed under Section 409A of the      Code if provided at the time otherwise required under this Agreement then      such payments shall be delayed until the date that is six months after the      date of the Employee’s “separation from service” with the Company, or, if      earlier, the date of the Employee’s death.  Any payments delayed      pursuant to this Section 23 shall be made in a lump sum on the first day      of the seventh month following the Employee’s “separation from service”      (as such term is defined under Treasury Regulation 1.409A-1(h)), or, if      earlier, the date of the Employee’sdeath. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | To      the extent that any reimbursement, fringe benefit or other, similar plan      or arrangement in which the Employee participates during the term of      Employee’s employment under this Agreement or thereafter provides for a      "deferral of compensation" within the meaning of Section 409A of the Code,      (i) the amount eligible for reimbursement or payment under such plan or      arrangement in one calendar year may not affect the amount eligible for      reimbursement or payment in any other calendar year (except that a plan      providing medical or health benefits may impose a generally applicable      limit on the amount that may be reimbursed or paid), and (ii) subject to      any shorter time periods provided herein or the applicable plans or      arrangements, any reimbursement or payment of an expense under such plan      or arrangement must be made on or before the last day of the calendar year      following the calendar year in which the expense was    incurred. |
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| EMPLOYER:                                                  |   | EMPLOYEE:                                            |
|------------------------------------------------------------|--------|------------------------------------------------------|
|  SHUFFLE      MASTER, INC.                            |   |  ROGER      SNOW                                |
|   BY:   /s/ Mark L.      Yoseloff |   |   BY:   /s/ Roger      Snow |
|  ITS:  Chief Executive      Officer         |   |                                                 |

| APPROVED:                                            |   |   |
|------------------------------------------------------|--------|--------|
|  COMPENSATION      COMMITTEE                    |   |   |
|   BY:   /s/ Lou      Castle |   |   |
|  ITS:  Chairman                       |   |   |

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