Document:

<PAGE>   1

                                                                   EXHIBIT 10(6)

                           CHANGE OF CONTROL AGREEMENT

     This Agreement (the "Agreement") is made effective as of this ____ day of
__________, 2001 (the "Effective Date"), by and between _______________________
an individual resident of the State of Nevada (the "Executive") and Innovative
Gaming Corporation of America, a Minnesota corporation, including its
subsidiaries and affiliates (collectively, "Employer" or the "Company").

RECITALS

     WHEREAS, the Board of Directors of the Company (the "Board") has determined
that it is in the best interests of the Company to employ and retain Executive
as a member of the senior management team of the Company; and

     WHEREAS, the Board wishes to encourage the Executive to continue his
employment with the Company and the Board believes that this objective can be
best served by providing for a compensation arrangement for the Executive upon
the Executive's termination of employment under certain circumstances in the
event of a Change Of Control (as hereinafter defined).

     NOW, THEREFORE, in consideration of the mutual promises and covenants of
the Company and Executive set forth below the Company and Executive agree as
follows:

     1. Termination Following a Change Of Control.

     a. Severance Payment. Subject to the provisions to Section 1(c), in the
event that Executive's employment is terminated within one (1) year following a
Change Of Control (as hereinafter defined) and such termination is either (i)
Without Cause; or (ii) is a Constructive Termination, Executive shall receive,
in addition to all compensation due and payable to or accrued for the benefit of
Executive as of the date of termination, a lump sum payment, twenty-one days
(21) days after execution and delivery of the Release, attached as Annex A
(provided that such Release has not been revoked), equal to (a) two times
Executive's Annual Compensation (as hereinafter defined) and (b) Executive's
Benefits (as hereinafter defined) (the "Severance Payment"); and all outstanding
options to purchase shares of stock in the Company shall immediately vest and
become immediately exercisable and, Executive or Executive's legal
representative shall have until the date which is two (2) years after the date
on which Executive ceases to be employed by the Company to exercise Executive's
right to purchase shares of stock of the Company under any such option
agreements (whether entered into before or after the

<PAGE>   2

date of this Agreement. Employer shall also use its best efforts to convert any
then existing life insurance and accidental death and disability insurance
policies to individual policies in the name of the Executive.

The provisions of this Section 1(a) shall apply following any Change Of Control
(as hereinafter defined) notwithstanding any provision otherwise in any stock
option agreement between the Company and the Executive which provides for the
grant to Executive of the right to purchase shares of stock of the Company.

     b. Exclusive Severance Payments. Severance Payments made hereunder shall be
in lieu of any other payments owed by Company to Executive pursuant to any other
Company severance policy.

     c. Release. As a condition for receiving the Severance Payment, Executive
shall execute and deliver to the Company the Release attached hereto as Annex A.

     d. Excise Tax.

          i. Anything in this Agreement to the contrary notwithstanding, in the
     event that it shall be determined that any payment or distribution by the
     Company to or for the benefit of the Executive, whether paid or payable or
     distributed or distributable pursuant to the terms of this Agreement or
     otherwise would constitute an "excess parachute payment" within the meaning
     of Section 280G of the Internal Revenue Code of 1986, as amended (the
     "IRC"), Executive shall be paid an additional amount (the "Gross-Up
     Payment") as indicated in Annex B.

     2. Indemnification.

     Following a Change of Control, the Executive shall be entitled to
indemnification and, (i) to the extent available on commercially reasonable
terms, and (ii) for a period of not less than three years after the effective
date of the resignation or termination of the Executive, insurance coverage
therefor, with respect to the various liabilities as to which the Executive has
been customarily indemnified prior to the Change of Control. In the event of any
discrepancies between the provisions of this paragraph and the terms of any
Company insurance policy covering executive or any indemnification contract by
and between the Company and Executive, such insurance policy or indemnification
contract shall control.

                                       2

<PAGE>   3

     3. Certain Definitions.

     a. Annual Compensation. For the purposes of this Agreement, Annual
Compensation shall mean Executive's annual base salary.

     b. Benefits. For the purposes of this Agreement, Benefits shall mean an
amount equal to the six month cost to Executive of obtaining health care
coverage comparable to that currently provided by Employer (grossed-up to
compensate Executive for the taxable nature of such payment), and an amount
equal to the six month cost to Executive of obtaining life insurance and
insurance coverage for accidental death and disability insurance comparable to
that provided by Employer (all as grossed-up to compensate Executive for the
taxable nature of such payments).

     c. Change of Control.

          i. For the purposes of this Agreement, a "Change of Control" shall
     mean:

               (1) The acquisition by any person, entity or "group", within the
          meaning of Section 13(d) (3) or 14(d) (2) of the Securities Exchange
          Act of 1934 (the "Exchange Act") (excluding, for this purpose, any
          acquisition by (A) the Company or (B) any employee benefit plan of the
          Company or its subsidiaries which acquires beneficial ownership of
          voting securities of the Company of beneficial ownership, (within the
          meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or
          more of either the then outstanding shares of common stock or the
          combined voting power of the Company's then outstanding voting
          securities entitled to vote generally in the election of directors; or

               (2) Individuals who, as of the date hereof, constitute the Board
          (the "Incumbent Board") cease for any reason to constitute at least a
          majority of the Board, provided that any person becoming a director
          subsequent to the date hereof whose election, or nomination for
          election by the Company's shareholders, was approved by a vote of at
          least a majority of the directors then comprising the Incumbent Board
          (other than an election or nomination of an individual whose initial
          assumption of office is in connection with an actual or threatened
          election contest relating to the election of the Directors of the
          Company, as such terms are used in Rule 14 a-11 of Regulation 14A
          promulgated under the Exchange Act) shall be, for purposes of this
          Agreement, considered as though such person were a member of the
          Incumbent Board; or

               (3) Approval by the shareholders of the Company of (A) a
          reorganization, merger or consolidation, in each case, with respect to
          which persons who were

                                       3

<PAGE>   4

          the shareholders of the Company immediately prior to such
          reorganization, merger or consolidation do not, immediately
          thereafter, own more than 50% of the combined voting power of the
          reorganized, merged or consolidated company's then outstanding voting
          securities entitled to vote generally in the election of directors of
          the reorganized, merged or consolidated company, provided that this
          provision shall not apply to the proposed merger with Xertain, Inc. or
          (B) a liquidation or dissolution of the Company or (C) the sale of all
          or substantially all of the assets of the Company.

     d. Termination Without Cause.

          (i) For the purposes of this Agreement, "Termination Without Cause"
     shall mean termination of the Executive by the Company for reasons other
     than:

               (1) the commission of a felony;

               (2) the theft or embezzlement of property of Employer or the
          commission of any similar act involving moral turpitude; or

               (3) the failure of Executive to substantially perform his
          material duties and responsibilities under this Agreement for any
          reason other than the Executive's death or disability, which failure
          is not cured within thirty (30) days (or if such cure is commenced
          within such thirty (30) day period and thereafter diligently pursued
          such longer period, not to exceed ninety (90) days, as is reasonably
          required to cure such failure), after written notice of such failure
          from the Company's Board of Directors specifying such failure.

     e. Constructive Termination.

          1. For the purposes of this Agreement, "Constructive Termination"
     shall mean :

               (1) a material, adverse change of Executive's responsibilities,
          authority, status, position, offices, titles, duties or reporting
          requirements (including directorships);

               (2) an adverse change in Executive's annual compensation or
          benefits;

               (3) a requirement to relocate in excess of fifty (50) miles from
          Executive's then current place of employment without Executive's
          consent; or

                                       4

<PAGE>   5

               (4) the breach by the Company of any material provision of this
          Agreement or failure to fulfill any other contractual duties owed to
          the Executive.

     For the purposes of this definition, Executive's responsibilities,
authority, status, position, offices, titles, duties and reporting requirements
are to be determined as of the date of this Agreement.

     4. Confidentiality; Nonsolicitation.

     a. Except to the extent required by law, Executive shall keep confidential
and shall not, without the Company's prior, express written consent, disclose to
any third party, other than as reasonably necessary or appropriate in connection
with Executive's performance of his duties under this Agreement or any
employment agreement, if any, any information regarding the Company, its
business, methods of operation, employees, projects, plans and prospects, which
information has not been released to the public by the Company. The provisions
of this Section 4 shall remain in effect after the expiration or termination of
this Agreement.

     b. For a period of one (1) year following termination of Executive
employment with the Company, for any reason or no reason, Executive hereby
agrees not to, without the prior written consent of the Company's Board,
directly or indirectly, solicit for employment, endeavor to entice away from the
Company or otherwise interfere with the Company's relationship with any person
who is employed by or otherwise engaged to perform services for the Company,
whether for Executive's own account or for the account of any other individual,
partnership, firm or corporation or other business entity.

     c. Executive agrees that the restrictions on disclosure and solicitation in
this Agreement are fair, reasonable and necessary for the protection of the
interests of the Company. Executive further agrees that a breach of any of the
covenants set forth in Section 4 of this Agreement will result in irreparable
injury and damage to the Company for which the Company would have no adequate
remedy at law, and Executive further agrees that in the event of a breach, the
Company will be entitled to an immediate restraining order and injunction to
prevent such violation or continued violation, without having to prove damages,
in addition to any other remedies to which the Company may be entitled to at law
or in equity.

     5. Notification to Subsequent Employers.

     Executive grants the Company the right to notify any future employer or
prospective employer of Executive concerning the existence of and terms of this
Agreement and grants the Company the right to provide a copy of this Agreement
to any such subsequent employer or prospective employer.

                                       5

<PAGE>   6

     6. Full Settlement.

     The Company's obligations to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against Executive or others. In no event
shall Executive be obligated to seek other employment or take any other action
by way of mitigation of the amounts payable to Executive under any of the
provisions of this Agreement and such amounts shall not be reduced whether or
not Executive obtains other employment. Employer agrees to pay promptly as
incurred, to the full extent permitted by law, all legal fees and expenses which
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by the Company, Executive or others of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereof (including as a result of any contest by the
Executive regarding the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at the rate published from time to
time in The Wall Street Journal as the prime rate of interest, plus two percent
(2%).

     7. Resolution of Disputes.

     If there shall be any dispute between the Company and the Executive (i) in
the event Executive's employment termination was Without Cause, or (ii) in the
event of a Constructive Termination of employment by the Company, then, unless
and until there is a final, nonappealable judgment by a court of competent
jurisdiction declaring that such termination was not Without Cause or that the
determination by the Executive of the existence of a Constructive Termination
was not made in good faith, the Company shall pay, and provide all benefits to
Executive and/or Executive's family or other beneficiaries, as the case may be,
that the Company would be required to pay or provide pursuant to this Agreement,
as though such termination were by the Company Without Cause or was a
Constructive Termination by the Company; provided, however, that the Company
shall not be required to pay any disputed amounts pursuant to this Section
except upon receipt of an undertaking by or on behalf of Executive to repay all
such amounts to which Executive is ultimately adjudged by such court not to be
entitled.

                                       6

<PAGE>   7

     8. Withholding.

     The Company may withhold from any amounts payable under this Agreement the
minimum Federal, state and local taxes as shall be required to be withheld
pursuant to any applicable law, statute or regulation.

     9. Successors and Assigns.

     This Agreement is binding upon, and shall inure to the benefit of the
Company and the Executive, and all successors and assigns of the Company. This
Agreement shall be binding upon and inure to the benefit of the Executive and
his heirs and personal representatives. The Company will require any successor
(whether direct or indirect, by purchase, merger or consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place. Failure of the Company to obtain such agreement,
prior to the effectiveness of any such succession shall be a material breach of
this Agreement and shall entitle the Executive to any Severance Payment payable
pursuant hereto.

     10. Term and Renewal.

     This Agreement shall have a one-year term following the Effective Date and
shall automatically renew on each anniversary of the Effective Date (each such
date an "Anniversary Date") unless either party objects to such automatic
renewal by providing the other party with a written notice of such objection at
least 60 or more days prior to the Anniversary Date.

     11. Miscellaneous.

     a. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Nevada, without reference to principles of conflict of
laws. The captions of this Agreement are not part of the provisions hereof and
shall have no force or effect. This Agreement may not be amended or modified
except by a written agreement executed by the parties hereto or their respective
successors and legal representatives.

     b. All notices and other communications under this Agreement shall be in
writing and shall be given by hand to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

                  IF TO EXECUTIVE:

                                       7

<PAGE>   8

                  IF TO COMPANY:

                  Innovative Gaming Corporation of America
                  Attention: Secretary
                  333 Orville Wright Court
                  Las Vegas, NV  89119

or to such other address as either party furnishes to the other in writing in
accordance with this Section. Notices and communications shall be effective when
actually received by the addressee.

     c. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement. If any provision of this Agreement shall be held invalid or
unenforceable in part, the remaining portion of such provision, together with
all other provisions of this Agreement, shall remain valid and enforceable and
continue in full force and effect to the fullest extent consistent with the law.

     d. The Executive's or the Company's failure to insist upon strict
compliance with any provision of, or to assert any right under, this Agreement
shall not be deemed to be a waiver of such provision or right or of any other
provision of or right under this Agreement.

     e. This Agreement may be executed in several counterparts, each of which
shall be deemed an original, and said counterparts shall constitute but one and
the same instrument.

     12. Entire Agreement.

     Except for the provisions of any stock option agreement(s), if any, between
Executive and the Company (as the same may be superseded by the terms of this
Agreement), this Agreement constitutes the entire agreement between the parties,
supersedes all prior agreements and understandings between the parties with
respect to the subject matter hereof and may not be modified or terminated
orally. No modification, termination or attempted waiver of this Agreement shall
be valid unless in writing and signed by the party against whom the same is
sought to be enforced.

                                       8

<PAGE>   9

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and
pursuant to the due authorization of its Board, the Company has caused this
Agreement to be executed in its name and on its behalf, all as of the day and
year first written above.

INNOVATIVE GAMING CORPORATION              EXECUTIVE:
  OF AMERICA

By: ______________________________          ____________________________________

    Its: _________________________

                                       9

<PAGE>   10

                                     ANNEX B

                               EXCISE TAX PAYMENTS

     i. The net amount retained by the Executive after deduction of any excise
tax imposed under Section 4999 of the IRC, and any federal, state and local
income and employment tax and excise tax imposed upon the Gross-Up Payment shall
be equal to the Severance Payment. For purposes of determining the amount of the
Gross-Up Payment, the Executive shall be deemed to pay federal income tax and
employment taxes at the highest marginal rate of federal income and employment
taxation in the calendar year in which the Gross-Up Payment is to be made and
state and local income taxes at the highest marginal rate of taxation in the
state and locality of the Executive's residence on the effective date of the
Executive's termination or resignation, net of the maximum reduction in federal
income taxes that may be obtained from the deduction of such state and local
taxes.

     ii. All calculations to be made under this Section 1 shall be made by the
Company's independent public accountant immediately prior to the Change of
Control (the "Accounting Firm"), which firm shall provide its conclusions and
any supporting calculations both to the Company and the Executive within 10 days
of the effective date of the Executive's resignation or termination, as the case
may be. Any such determination by the Accounting Firm shall be binding upon the
Company and the Executive.

          (1) The Executive shall notify the Company in writing of any claim by
     the Internal Revenue Service that, if successful, would require the payment
     by the Company of the Gross-Up Payment. Such notification shall be given as
     soon as practicable but no later than twenty (20) business days after the
     Executive knows of such claim and Executive shall apprise the Company of
     the nature of such claim and the date on which such claim is requested to
     be paid. The Executive shall not pay such claim prior to the expiration of
     the thirty day period following the date on which he gives such notice to
     the Company (or such shorter period ending on the date that any payment of
     taxes with respect to such claim is due). If the Company notifies the
     Executive in writing prior to the expiration of such period that it desires
     to contest such claim, the Executive shall:

               (a) give the Company any information reasonably requested by the
          Company relating to such claim;

               (b) take such action in connection with contesting such claim as
          the Company shall reasonably request in writing from time to time,
          including, without limitation, accepting legal representation with
          respect to such claim by an attorney reasonably selected by the
          Company;

                                       10

<PAGE>   11

               (c) cooperate with the Company in good faith in order to
          effectively contest such claim; and

               (d) permit the Company to participate in any proceedings relating
          to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax, including interest and
penalties, with respect thereto, imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 1, the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearing and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
resolution before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided further, however, that if the Company directs the Executive
to pay such claim and sue for a refund the Company shall advance the amount of
such payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax, including interest or penalties with respect thereto, imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and provided further that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount. Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

     (2) If, after the receipt by the Executive of an amount advanced by the
Company pursuant to this Section, the Executive becomes entitled to receive any
refund with respect to such claim, the Executive shall (subject to the Company's
complying with the requirements of subsection(i), (ii) and (iii) of this
Section) promptly pay to the Company the amount of such refund (together with
any interest paid or credited thereon after taxes applicable thereto). If, after
the receipt by the Executive of an amount advanced by the Company pursuant to
this Section, a determination is made that the Executive shall not be entitled
to any refund with respect to such claim and the Company does not notify the
Executive in writing of its intent to contest such denial of refund prior to the
expiration of thirty days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to
be paid.

     (3) All of the fees and expenses of the Accounting Firm in performing the
determinations referred to in subsections (i) and (ii) above shall be borne
solely by the Company.

                                       11<PAGE>   1

                                                                   EXHIBIT 10(7)

                     SYSTRAN Financial Services Corporation
                              CORPORATE RESOLUTION

     I, the undersigned Secretary or Assistant Secretary of Innovative Gaming
Corporation of America ("Corporation"), certify that the Corporation is
organized and existing under and by virtue of the laws of the State of
Minnesota as a corporation for profit, with its principal office at 333 Orville
Wright Ct., Las Vegas, NV 89119, and is duly authorized to transact business.

     I FURTHER CERTIFY that at a meeting of the Directors of the Corporation
(or by other duly authorized corporate action in lieu of a meeting) duly called
and held on May 22, 2001, at which a quorum was present and voting, the
following resolutions were adopted:

     BE IT RESOLVED, that any one of the following named officers, employees or
agents of this Corporation, whose actual signatures are shown below:

<Table>
<Caption>
NAMES                          POSITIONS         SIGNATURES
-----                          ---------         ----------
<S>                            <C>               <C>

---------------------------    President         -------------------------------

---------------------------    Vice President    -------------------------------
Loren A. Piel                                     /s/ LOREN A. PIEL
---------------------------    Secretary         -------------------------------
Roland M. Thomas                                  /s/ ROLAND M. THOMAS
---------------------------    Chairman & CEO    -------------------------------
</Table>

acting for and on behalf of this Corporation and as its act and deed be, and
they hereby are, authorized and empowered to:

1.   Grant Security. To mortgage, pledge, hypothecate, or otherwise encumber
     and deliver to SYSTRAN Financial Services Corporation and its affiliates,
     including but not limited to Textron Financial Corporation, as security
     for the purchase of all accounts and accounts receivable of Corporation
     presently existing or hereafter created together with any and all funds
     deposited with SYSTRAN by Corporation, and all guaranties, securities,
     books, records, accounts, correspondence and documents pertaining in whole
     or in part to any of the foregoing. All of Corporation's contract rights,
     general intangibles, money, instruments, documents, chattel paper,
     securities, credits, claims and demands against SYSTRAN. All proceeds of
     the foregoing.

2.   Execute Factoring Agreement. To execute and deliver a Factoring Agreement,
     including a Power of Attorney and Settlement Authorization, providing for
     the sale and assignment of this Corporation's accounts receivable to
     SYSTRAN together with a financing statement or statements; also to execute
     and deliver to SYSTRAN any other written instruments, any chattel paper,
     or any other collateral, of any kind or nature, which SYSTRAN may in its
     discretion deem reasonably necessary or proper in connection with or
     pertaining to the giving of the liens and encumbrances. Notwithstanding
     the foregoing, any one of the above authorized officers, employees, or
     agents may execute, deliver, or record financing statements.

3.   Further Acts. To do and perform such other acts and things, to pay any and
     all fees and costs, and to execute and deliver such other documents and
     agreements as they may in their discretion deem reasonably necessary or
     proper in order to carry into effect the provisions of these Resolutions.

BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
resolutions and performed prior to the passage of these resolutions are hereby
ratified and approved, that these Resolutions shall remain in full force and
effect and SYSTRAN may rely on these Resolutions until written notice of their
revocation shall have been delivered to and received by SYSTRAN. Any such
notice shall not affect any of the Corporation's agreements or commitments in
effect at the time notice is given.

I FURTHER CERTIFY that the officers, employees, and agents named above are duly
elected, appointed, or employed by or for the Corporation, as the case may be,
and occupy the positions set opposite their respective names; that the
foregoing Resolutions now stand of record on the books of the Corporation; the
Corporation has no Corporate Seal, and therefore, no seal is affixed to this
certificate.

     IN TESTIMONY WHEREOF, I have hereunto set my hand on May 22, 2001.

                          /s/ LOREN A. PIEL
                         --------------------------------
                         Secretary or Assistant Secretary

Page 1 of 1 - CORPORATE RESOLUTION (Rev. 04-06-01)
<PAGE>   2
           SYSTRAN FINANCIAL SERVICES CORPORATION FACTORING AGREEMENT

This Factoring Agreement (the "Agreement") is between SYSTRAN Financial Service
Corporation ("SYSTRAN") and its successor or assigns and Innovative Gaming
Corporation of America, whose address is set forth on the last page hereof.

1.   DEFINITIONS
     (a)  "Bill(s)" means any right to payment for services rendered or goods
          sold by Customer to a Debtor evidenced by a writing which complies
          with the general requirements of SYSTRAN as those may be set forth in
          the Customer Information Manual, as  described in Paragraph 2.5.
     (b)  "Chargeback" the debit of a Bill or a "Special Purchase Bill(s)" to a
          Customer's account.
     (c)  "Commencement Date" means the date that the Customer first receives
          funds from SYSTRAN pursuant to the terms of the Agreement.
     (d)  "Commercial Account" means any non "Transportation Account".
     (e)  "Debtor" means a person or entity obligated to pay a Bill.
     (f)  "Minimum Anticipated Volume" means the dollar amount of Bills that
          Customer agrees to offer to sell to SYSTRAN for each month during the
          term of the Factoring Agreement.
     (g)  "Obligation" means all indebtedness, liabilities and obligations
          whatsoever and of whatever nature owed by Customer to SYSTRAN, or any
          of its affiliates, whether direct or indirect, absolute or contingent,
          due or to become due, now existing or hereafter arising and how ever
          evidenced or acquired, whether joint or several or joint and several.
     (h)  "Recourse" means the right the Chargeback a Bill(s) or "Special
          Purchase Bill(s)" to Customer.
     (i)  "Special Purchase Bill(s)" means the purchase by SYSTRAN of Customer's
          outstanding and unpaid Bills that have either been previously billed
          by Customer, financed by a lender, or sold and assigned to another
          company who buys Bills. Special Purchase Bills shall be subject to all
          provisions of this Agreement.
     (j)  "Transportation Account" means any debtor doing business primarily
          with any aspect of the transportation industry such as freight
          carriers, brokers, forwarders, consolidators, and call agents with the
          exception of steamship companies.

2.   PURCHASE OF BILLS
     2.1  Customer agrees to present on a monthly basis, a Minimum Anticipated
Volume of Bills for SYSTRAN to purchase which shall be equal to $750,000.00.
SYSTRAN, at its sole discretion, may purchase such Bills. Bill(s) and or
Special Purchase Bill(s) shall herein collectively be referred to as "The
Bill(s)". Customer shall submit to SYSTRAN an original and one (1) copy, along
with any document which SYSTRAN deems necessary, of each Bill which shall be
attached to a schedule form provided by SYSTRAN. Should any Debtor require any
additional documentation as a prerequisite to payment, Customer will also
provide such documentation with each Bill. For a Transportation Account,
Customer shall also submit one (1) copy of the respective bill of lading. The
bill of lading must be signed by the Customer, the shipper, and the consignee
if the consignee's signature is necessary for payment.
     2.2  SYSTRAN will settle with the Customer by providing to Customer by
U.S. Mail, electronic mail, or via facsimile a settlement statement setting
forth The Bill(s) and/or Special Bills purchased, the amount paid, and any
deductions made for fees, charges or the "Deposit" and deposit funds as
follows: [Customer shall choose one option] [ ] Mail funds due Customer.
[ ] Deliver overnight funds due Customer via United Parcel Service next day
service air. [ILLEGIBLE] transfer funds due Customer into bank account specified
by Customer on wire authorization form. [ ] Deposit funds due Customer.
     2.3  Any payment to Customer may be reduced by SYSTRAN by any amount due
from Customer to SYSTRAN, including but not limited to the security deposit,
Chargebacks, fees and costs.
     2.4  SYSTRAN may give notice to the Debtors of the assignment of The
Bill(s) by placing a legend on The Bill(s) stating The Bill(s) have been sold
and assigned to SYSTRAN and are payable to SYSTRAN at an address designated by
SYSTRAN. Customer will not attempt to direct payment to any place other than to
the SYSTRAN designated address. Customer agrees to pay all costs and expenses
incurred by SYSTRAN in giving such notice. All proceeds of The Bill(s) received
by Customer shall be delivered immediately to SYSTRAN in the identical form of
payment received by Customer. In the event that Customer collects directly from
the Debtor, The Bill(s) which have been sold to SYSTRAN and Customer does not
deliver immediately to SYSTRAN the identical form of payment received by
Customer, Customer will be charged an administrative fee equal to fifteen
percent (15%) of the face amount of The Bill(s) collected directly. Customer
agrees that any collection directly from the Debtor by Customer of The Bill(s)
which have been sold to SYSTRAN will be considered a default under the terms
of this Agreement.
     2.5  SYSTRAN has or will provide to Customer a Customer Information
Manual, which is a guide to policy and procedures concerning daily submission
of The Bill(s), collection efforts, and other matters. The Customer
Information Manual (the "Manual") is not part of this Agreement. The procedures
set forth in the Manual are only guidelines to ensure the efficient operation
of SYSTRAN's purchase of The Bill(s). SYSTRAN may change any procedure in the
Manual at any time, and may choose not to follow procedures in the Manual at
its discretion.

3.   FEE(S)
     3.1  SERVICE FEE(S). Customer shall pay a fee of the face amount of all of
The Bill(s) purchased by SYSTRAN as reflected on Exhibit A attached hereto (the
"Service Fee(s)"). The Service Fee(s) shall be payable upon the purchase of any
of The Bill(s) by SYSTRAN, and SYSTRAN may collect Service Fee(s) either from
payments owed to Customer or may bill the Customer periodically. SYSTRAN may,
upon prior notice to Customer, change any fee and such change shall be
effective upon receipt of the notice to Customer; provided, that SYSTRAN may
change the amount of any fee caused by a change in SYSTRAN's cost of funds
without prior notice to Customer, but must notify Customer of such change on
Customer's next settlement statement. A fee change due to a change in cost of
funds will be effective upon the date of the change which will be reflected on
Customer's settlement statement. If, at any time during the term of this
Agreement, there is an event of default by Customer including, but not limited
to, a Federal Tax Lien filed against and attaching to the property of Customer
or any of its principals, and the tax lien is satisfied to allow continued
funding pursuant to this Agreement, SYSTRAN shall increase all of Customer's
Service Fee(s) to no less than one-half of one percent (0.5%) discount fee on
the face of The Bill(s).
     3.2  MINIMUM FEE. In the event that Customer fails to sell to SYSTRAN the
Minimum Anticipated Volume in any month, Customer shall pay a minimum fee to
SYSTRAN which shall be equal to $20,937.75 (the "Minimum Fee"). The Minimum Fee
owing by Customer pursuant to this paragraph may be deducted from Customer's
funding. In the event that Customer fails to sell the Minimum Anticipated
Volume per month for each of any two consecutive months (the "Low Volume
Period"), Customer's Service fee will be increased at the beginning of the month
immediately following the Low Volume Period at SYSTRAN's discretion. At
SYSTRAN's discretion, the Service Fee will be returned to the last fee in effect
should Customer's monthly purchase volume exceed the Minimum Anticipated Volume
per month for each of two consecutive months.
     3.3  ADDITIONAL SERVICES and VALUE FEES. From time to time during the term
of this Agreement, Customer may request SYSTRAN to provide additional services
and/or incur additional risk. Such additional services and/or additional risk
shall include but not be limited to advances to the Customer by SYSTRAN which
are not in conformity with the terms of the Agreement, extension of Customer's
contractual recourse under the Agreement, purchases by SYSTRAN of bills which
are outside of the formulas and calculations defined in the Agreement
(hereinafter such services shall be collectively referred to as the "Additional
Services"). Customer shall pay SYSTRAN the cost for added value for such
Additional Services (hereinafter referred to as the "Value Fee(s)"). The Value
Fee(s) will be reflected on Customer's daily settlement statement.

PAGE 1 - 8500 FACTORING AGREEMENT
         Revised 4-17-01

<PAGE>   3
4.   DEPOSIT

     4.1  In order to secure Customer's Obligations hereunder, Customer shall
deliver to SYSTRAN a deposit equal to twenty five percent (25%) of Customer's
Bills that are ninety (90) days old or less computed from date of purchase
("Deposit").

     4.2  ADJUSTMENT OF DEPOSIT. The amount of Customer's Deposit will be
reviewed and, if necessary, adjusted each day. Increases in the amount of
Customer's Deposit will be withheld by SYSTRAN from payments to Customer. If
sufficient Bills are not purchased to fund the increase, Customer will pay the
amount of the increase upon demand. Decreases will be repaid to Customer from
Customer's Deposit amount.

     4.3  REPAYMENT OF DEPOSIT. Upon termination of the Agreement, (a) SYSTRAN
may increase the Deposit percentage to 100%, in its sole discretion, and (b) all
other sums that may become due to Customer by SYSTRAN will be included in the
Deposit. Any shortfall in the Deposit shall bear interest at the rate of four
percent (4%) per month.

5.   SECURITY INTEREST

     5.1  The purchase of The Bill(s) of Customer by SYSTRAN is absolute subject
to the right to Chargeback. In addition to the outright ownership of The Bill(s)
purchased by SYSTRAN, to secure the payment and performance of Customer's
Obligations to SYSTRAN, Customer grants SYSTRAN a security interest in all
Customer's present and future Bill(s) and Special Purchase Bill(s), accounts,
deposit accounts, chattel paper, contract rights, general intangibles,
instruments, and documents, and the proceeds of the foregoing, including
proceeds in the form of inventory and/or equipment (the "Collateral").

     5.2  FINANCING STATEMENTS. Customer shall not execute or file any financing
statement, supplements or amendments thereto, or any other instruments or
security agreement covering the Collateral described above in favor of anyone
other than SYSTRAN. Customer shall execute and deliver to SYSTRAN any financing
statements, title documents, supplements hereunder or the priority of such
security interest. CUSTOMER AUTHORIZES SYSTRAN TO SIGN ITS NAME TO ANY SUCH
FINANCING STATEMENT AND FILE SAME IN CUSTOMER'S NAME COVERING THE COLLATERAL.
Customer shall pay all costs of filing such statements or instruments with
appropriate governmental authorities together with the costs of all lien
searches. Customer agrees that either a carbon, photocopy, or other reproduction
of this Agreement is sufficient as a financing statement under this Agreement.

     5.3  SYSTRAN may, in its sole discretion, elect to discharge any security
interest, lien or other encumbrance upon any of the Bill(s) for services
rendered or goods sold purchased by SYSTRAN. Any such payments and all expenses
incurred in connection therewith shall be treated as a Chargeback.
Notwithstanding the foregoing, SYSTRAN shall have no obligation to discharge any
such security interest, lien or encumbrance.

6.   RECOURSE, DISPUTES AND CHARGEBACKS

     6.1  All of The Bill(s) are purchased by SYSTRAN from Customer with
Recourse. All of The Bill(s) may be Chargedback to Customer at any time after
ninety (90) days for a Commercial Account and steamship companies, and ninety
(90) days for Transportation Account(s) after the purchase date of The Bill(s)
if not collected from Debtor within such period or at any time, if SYSTRAN
determines, in its sole discretion, that The Bill(s) is not collectible. All of
The Bill(s) owing by Canadian Debtors or logistics companies are subject to
Chargeback sixty  (60) days from the date of purchase by SYSTRAN. SYSTRAN shall
not deem a disputed Bill or Special Purchase Bill uncollectible without allowing
Customer a reasonable time to settle the dispute not to exceed fourteen (14)
days from notice of dispute. It is within SYSTRAN'S discretion as to when The
Bill(s) over such time periods may be Chargedback to Customer.

     6.2  SYSTRAN  reserves the right, however, from time to time and at its
absolute discretion, to Chargeback to Customer any of The Bill(s) which do not
conform to the representations and warranties set forth in the Agreement or are
discovered not to conform with the reasonable standards which SYSTRAN may set
for The Bill(s). SYSTRAN shall have a continuing security interest in any and
all of The Bill(s) which are Chargedback to the Customer. Chargeback of any of
The Bill(s) does not authorize Customer to collect any outstanding sum owing on
The Bill(s) from a Debtor.

     6.3  COLLECTION OF BILLS. SYSTRAN may, but is not required to, commence any
action, including legal action, to collect The Bill(s). All costs of collection,
including attorney fees, court fees, and costs of investigation, will be charged
to the Customer. Prior to any event of default by a Debtor, SYSTRAN will
commence litigation only with Customer's authorization. Subsequent to an event
of default, SYSTRAN may file suit as it deems necessary without Customer's
authorization. In the event of default, Customer hereby grants authorization to
SYSTRAN to settle or compromise any freight bill dispute, including litigation,
with any uncollected amount being subject to Chargeback, together with all other
amounts for which Customer is obligated to SYSTRAN.

     6.4  CLEARANCE DAYS. Clearance Days shall mean (i) three (3) business days
for checks drawn on banks located within the United States and for all
electronic funds transfers, and (ii) three (3) business days for all other
payments. For all purposes and computations under this Agreement, Clearance Days
will be added to the date on which any payment is received by SYSTRAN.

7.   WARRANTIES AND REPRESENTATIONS

     7.1  Customer warrants and represents with respect to all of The Bill(s)
sold to SYSTRAN that (a) The Bill(s) are genuine and in all respects what they
purport to be; (b) Customer has good title to The Bill(s) and The Bill(s) are
free and clear of all encumbrances, liens and prior claims, and that the
Customer has the legal right to sell The Bill(s); (c) Customer has no knowledge
of any fact which may impair the validity of The Bill(s) or make them
uncollectible in accordance with its terms and face amount; (d) for
transportation Customers, The Bill(s) were made in accordance with the laws and
the regulations of the Federal Highway Administration or other federal
regulatory agency, and the appropriate state regulatory commission or made
according to lawful and valid contracts which Customer has executed; (e) for
transportation Customers. The Bill(s) are supported by lawful, effective and
complete bills of lading or other contract of carriage together with bona fide,
genuine, valid and signed delivery receipts, and Customer will not modify or
delete any of the terms of the original Bills or Special Purchase Bills or bill
of lading with respect to same; (f) there are no counterclaims or setoffs or
defenses existing in favor of the Debtor, whether arising from the services
provided or goods sold which are the subject of The Bill(s) or otherwise and
there has been no agreement as to the issuance or granting of any discount on
The Bill(s); (g) The Bill(s) are not a duplicate of and do not cover the same
services provided or good sold as a Bill or Special Purchase Bill previously
purchased by SYSTRAN from the Customer or billed directly by the Customer to the
Debtor; (h) Customer does not own, control, or exercise dominion over the
business of any Debtor whose Bills or Special Purchase Bills are factored by
Customer to SYSTRAN. Customer is not a subsidiary of any Debtor and no Debtors
control or exercise dominion over the business of Customer; (i) Customer will
not under any circumstances or in any manner whatsoever interfere with any of
SYSTRAN's rights under this Agreement in connection with SYSTRAN's factoring of
The Bill(s); (j) Customer has not and will not pledge the credit of SYSTRAN to
any person or business for any purpose whatsoever; (k) for non-transportation
Customers, until the sale by Customer to Debtor of the goods described in The
Bill(s), Customer has good title to the goods sold, the goods were free of all
encumbrances, liens and prior claims, and Customer had the legal rights to sell
the goods.

     7.2  If the Customer is a corporation, partnership or limited liability
company, it is duly organized, existing, and in good standing under the laws of
Minnesota. If Customer represents him or herself to be a sole proprietorship or
a partnership, such representation shall be deemed conclusive and binding upon
Customer. Customer is duly qualified to do business and is in good standing in
every other state in which such qualification is required. If Customer is a
corporation, partnership or limited liability company, execution, delivery and
performance hereof are within its corporate or entity powers, have been duly
authorized, and are not in contradiction of law or the terms of its charter,
by-laws, partnership agreement, operating agreement or other entity papers, or
any indenture, agreement or undertaking to which it is a party or by which it is
bound. In addition, the Customer has all licenses and certificates necessary for
the operation of its business and the Issuance of The Bill(s).

PAGE 2 - 8500 FACTORING AGREEMENT
         REVISED 4-17-01

<PAGE>   4
8.   AUTHORITY

Customer irrevocably authorizes SYSTRAN or any person designated by SYSTRAN to:
bill, receive and collect all amounts which may be due or become due to Customer
from Debtors and to use Customer's name for purposes of billing and collection
of amounts due; delete Customer's address on all invoices mailed to Debtor and
substitute SYSTRAN's address; receive, open and dispose of all mail addressed to
Customer or Customer's trade name at SYSTRAN's address; negotiate checks
received in payment whether payable to Customer or to SYSTRAN, endorse the name
of Customer or Customer's trade name on any checks or other evidences of payment
that may come into the possession of SYSTRAN on The Bill(s) purchased by SYSTRAN
and on any invoices or other document relating to any of The Bill(s); in
Customer's name, or otherwise, demand, sue for, collect and get or give releases
for any and all monies due or to become due on The Bill(s); compromise,
prosecute, or defend any action, claim or proceeding as to The Bill(s) purchased
by SYSTRAN; take all steps necessary to ensure payment of such amounts due and
do any and all things in Customer's name necessary and proper to carry out the
purpose intended by this Agreement.

9.   ADDITIONAL DOCUMENTS

     The Customer shall execute and deliver all such additional and further
instruments as may be reasonably requested by SYSTRAN in order to more
completely vest in and assure to SYSTRAN and make available to it, the property
and rights herewith or hereafter granted or assigned and transferred to SYSTRAN
as Collateral and to evidence the sale of The Bill(s) to SYSTRAN and to carry
into effect the provisions and intent of this Agreement.

10.  LOCATION OF BOOKS AND RECORDS, PLACE OF BUSINESS

     Customer's place of business is the one set forth in this Agreement and all
of its books, accounts, correspondence, papers and records pertaining to the
services performed or sales of products are located there, and all such books,
accounts, correspondence, papers and records will be opened for SYSTRAN's
inspection at all reasonable times.

11.  INDEMNIFICATION OF SYSTRAN; SALES AND EXCISE TAXES

     Customer will indemnify and hold SYSTRAN harmless against any and all
liability, loss or expense, including attorney's fees and costs, caused by or
arising out of any claims or alleged claims asserted relating in any manner to
The Bill(s) purchased by SYSTRAN hereunder or subject to SYSTRAN's security
interest, including, but not limited to, claims asserted against SYSTRAN
pursuant to Chapter 5, Title 11 of the United States Code. In the event any
sales or excise taxes are imposed by any state, federal or local authorities
with respect to any of The Bill(s) sold and assigned hereunder, where such taxes
are required to be withheld or paid by SYSTRAN, Customer shall also indemnify
SYSTRAN and hold it harmless with respect to all such taxes and hereby
authorizes SYSTRAN to charge to Customer's account any such tax that is paid or
withheld by SYSTRAN. SYSTRAN may charge the Deposit or initiate legal
proceedings to collect any amount due under this paragraph. This paragraph shall
survive and remain effective following the termination of the Factoring
Agreement.

12.  FINANCIAL INFORMATION

     So long as Customer factors or has any absolute or contingent obligation of
any kind owing to SYSTRAN, the Customer will provide information regarding the
business, affairs and financial condition of Customer and its subsidiaries as
SYSTRAN may reasonably request, including financial statements.

13.  BANKRUPTCY

     Customer agrees to notify SYSTRAN of any voluntary or involuntary
bankruptcy petition filed by or against it or any guarantor within twenty-four
(24) hours of such filing.

14.  REORGANIZATION, ACQUISITIONS, CHANGE OF NAME OR LOCATION

     Customer will not, and will not permit any subsidiary to merge or
consolidate with or into any corporation or other entity, or sell, lease,
transfer, or otherwise dispose of all or any substantial part of its assets,
whether now owned or hereafter acquired. Customer shall notify SYSTRAN in
writing not less than thirty (30) days prior to (a) any change of its name or
use of any trade names; or (b) any change in the address of the chief executive
office and/or chief place of business of Customer or the location of any records
pertaining to The Bill(s).

15.  LITIGATION

     Except as disclosed in writing, Customer represents and warrants to SYSTRAN
as follows: There are no suits or proceedings pending or to the knowledge of
Customer, threatened against or affecting Customer or any of its subsidiaries
which, if adversely determined, would have a material adverse effect on the
financial condition or business of Customer and its subsidiaries and there are
no proceedings by or before any governmental commission, board, bureau, or other
administrative agency pending or, to the knowledge of Customer, threatened,
against Customer or any of its subsidiaries. Further, Customer represents and
warrants there is no claim, loss contingency, or proceeding, whether or not
pending, threatened or imminent, against or otherwise affecting Customer that
involves the possibility of any judgment or liability not fully covered by
insurance or that may result in a material adverse change in the business,
properties, or condition, financial or otherwise, of Customer.

16.  TRADE NAMES

     Customer represents and warrants to SYSTRAN that it utilizes no trade names
or assumed business names in the conduct of its business except Innovative
Gaming Corporation of America.

17.  TAXES

     Customer represents and warrants to SYSTRAN that: Customer has filed all
federal, state, and local tax returns and other reports it is required to file
and has paid or made adequate provision for payment of all such taxes,
assessments, and other governmental charges.

18.  TERM AND TERMINATION

     18.1 This Agreement is for a term of twelve full months to begin on the
Commencement Date as defined in paragraph 1(c) herein. The term of this
Agreement shall renew automatically for an additional twelve full months unless
sooner terminated in accordance with the terms of the Agreement. Customer may
terminate this Agreement effective at the end of any term by giving thirty (30)
days prior written notice to SYSTRAN at the address set forth in this Agreement.
Customer may continue to offer any of The Bill(s) to SYSTRAN during such thirty
(30) day period. SYSTRAN may terminate this Agreement at any time and for any
reason by notifying Customer in writing of such termination.

     18.2 All of Customer's representations, warranties, and other provisions of
this Agreement shall survive such termination until SYSTRAN has been paid in
full and Customer has fully performed all of its obligations. In addition,
should any transfer of money or property to SYSTRAN hereunder be avoided in a
bankruptcy proceeding involving Customer, any Debtor of Customer, or otherwise,
the Customer's Obligations hereunder shall be reinstated and/or supplemented to
the extent of the avoided transfer, whether or not this Agreement has otherwise
been terminated.

PAGE 3 - 8500 FACTORING AGREEMENT
         Revised 4-17-01
<PAGE>   5

     18.3  Notwithstanding the foregoing, Customer has the option to terminate
this Agreement prior to the end of any term by giving SYSTRAN thirty (30) days
prior written notice. Customer may continue to offer any of The Bill(s) to
SYSTRAN during such thirty (30) day period. Customer shall be deemed to have
terminated this Agreement prior to the end of any term on the date that Customer
shall have ceased presenting The Bill(s) to SYSTRAN in the normal course for an
uninterrupted period of thirty (30) days ("Deemed Termination"). Upon notice of
early termination, or the date of a Deemed Termination by Customer, prior to the
end of any term, whether or not Customer continues to offer The Bill(s) to
SYSTRAN during the thirty (30) day notice period applicable to Customer,
Customer shall be obligated to pay to SYSTRAN, and Customer's Deposit may be
charged, an early termination premium ("Early Termination Premium") in an amount
equal to two point seven nine percent (2.79%), or the then current Service Fee
specified in Section 3.1 or any subsequent amendment to Section 3.1, whichever
fee is greater, times the dollar volume of The Bill(s) purchased by SYSTRAN
during the month in which Customer's dollar volume of The Bill(s) purchased by
SYSTRAN was the greater multiplied by the number of months remaining in the then
current term, or eleven (11) months, whichever is lower.

     18.4  Any partial month remaining in the current term shall constitute a
full month for the purpose of calculating the Early Termination Premium. In
addition, if SYSTRAN buys Bills from Customer as part of a Special Purchase
Bill, and should Customer terminate this Agreement within the first four (4)
months of the term of this Agreement, Customer's Deposit shall be charged an
Early Termination Premium in the amount of the balance of the Deposit on the
termination date. The termination date shall be thirty (30) days after
SYSTRAN's receipt of the termination notice or on the Deemed Termination date,
unless a termination notice specifies a date that is more than thirty (30)
days but less than sixty (60) days after SYSTRAN's receipt of the termination
notice.

     18.5  If SYSTRAN terminates this Agreement prior to the end of any term
upon any default in the performance of Customer under this Agreement, in view of
the impracticality and extreme difficulty in ascertaining actual damages and by
mutual agreement of the parties as to the reasonable calculation of SYSTRAN's
lost profits as a result thereof, Customer shall be obligated to pay SYSTRAN
upon the effective date of such termination, and Customer's Deposit may be
charged, a premium in an amount equal to the Early Termination Premium as set
forth above. If Customer terminates this Agreement pursuant to the terms
thereof, Customer shall immediately remit and pay to SYSTRAN, at the time of
termination, all Obligations due and owing to SYSTRAN and/or its affiliates by
Customer, under this and any other Agreement.

19.  EVENTS OF DEFAULT

     19.1  The following shall be events of default under the terms of this
Agreement: (a) default by Customer in the performance of any Obligation to
SYSTRAN or any other financial institution or bank; (b) Customer agrees to the
appointment of a receiver for its assets, makes general assignment for the
benefit of creditors or declares that it is unable to pay its debts as they
mature; (c) Customer files a proceeding under any law for the relief of Debtors,
including but not limited to, Title 11 of the United States Code, referred to as
"The Bankruptcy Code" or any other similar law which may exist; (d) any
involuntary petition under the Bankruptcy Code or similar statute has been filed
against the Customer and not dismissed within sixty (60) days after filing
without the entry of an order for relief; (e) the issuance of an attachment,
execution, tax assessment or similar process against the Customer or its
property which is not released within ten (10) days of its attachment; (f) any
change in the conditions, financial or otherwise, of the Customer which
reasonably caused SYSTRAN to deem itself insecure.

     19.2  In addition to all other remedies provided by law, upon the
occurrence of an event of default, SYSTRAN may immediately, and without notice
to the Customer, increase the amount of the Deposit required under Section 4 of
this Agreement to one hundred percent (100%) of the outstanding amount of Bills
purchased from the Customer ("100% Deposit"), and the Customer shall immediately
deliver to SYSTRAN funds sufficient to create this 100% Deposit.

     19.3  SYSTRAN may, upon default under the Agreement or any of the
agreements, collect any Obligation owing to SYSTRAN or any of its affiliates by
debiting Customer's account, attach any funds owing to Customer by SYSTRAN or
its affiliates, and exercise any other remedy available to SYSTRAN under the
Agreements or at law. Any deficiency arising under this Agreement shall accrue
interest at the annual rate of twelve percent (12%) or the highest amount
allowed by law, whichever is higher, from the date the deficiency is incurred.

20.  EXPENSES

     20.1  Customer shall reimburse SYSTRAN for all fees, costs and expenses
incurred by SYSTRAN in relation to this Agreement. SYSTRAN may, at any time, and
without regard to any remedy listed above, demand from Customer payment of the
outstanding fees, costs and expenses.

     20.2  ATTORNEYS' FEES. With respect to any default under this Agreement,
Customer shall reimburse SYSTRAN for all costs and expenses incurred by
attorneys, including both SYSTRAN's in-house attorneys and outside attorneys'
and paralegals' whether or not a lawsuit or other court action is actually filed
in connection with the event of default. In the event that a suit, action,
arbitration, or other proceeding of any nature, including, without limitation,
any proceeding under The Bankruptcy Code, any action seeking a declaration of
rights or an action for rescission is instituted to interpret or enforce this
Agreement, including, but not limited to such fees and costs associated with
trial and appeals, Customer agrees to pay the reasonable attorneys' fees
incurred in connection with any such proceeding as awarded by the court.

     20.3  OTHER PROFESSIONALS AND EXPERTS.  With respect to any event of
default under this Agreement, SYSTRAN in its sole discretion may retain
accountants, auditors, appraisers and other experts and the Customer agrees to
pay the professional fees, expert fees and all other fees and costs reasonably
and actually incurred in connection with the services provided.

     20.4  NO LIEN TERMINATION WITHOUT RELEASE.  In recognition of SYSTRAN's
right to have its attorneys' fees and other expenses incurred in connection with
this Agreement secured by the Collateral, notwithstanding payment in full or all
Obligations by Customer, SYSTRAN shall not be required to record any
terminations or satisfactions of any of SYSTRAN's liens on the Collateral unless
and until Customer has executed and delivered to SYSTRAN a general release in a
form reasonably satisfactory to SYSTRAN. Customer understands that this
provision constitutes a waiver of its rights under Section 9-404 of the UCC.

     20.5  JURY TRIAL WAIVER.  IN RECOGNITION OF THE HIGHER COSTS AND DELAY
WHICH MAY RESULT FROM A JURY TRIAL, THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY
OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING HEREUNDER, OR (B) IN
ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO OR ANY OF THEM WITH RESPECT HERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND
EACH PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE ANY SUCH ACTION IN WHICH A
JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE
OR HAS NOT BEEN WAIVED; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

21.  JURISDICTION AND VENUE

     This Agreement shall be deemed to be a contract under the laws of the State
of Oregon and for all purposes shall be governed by and construed in accordance
with the laws of that state. Customer irrevocably agrees that any legal action
or proceeding brought by or against Customer with respect to the Agreement shall
be brought in the courts of the State of Oregon or in the U.S. District Court
for the District of Oregon. Customer consent to the jurisdiction

PAGE 4 - 8500 FACTORING AGREEMENT
         Revised 4-17-01

<PAGE>   6
of such courts and that the venue for any such section shall be the County of
Clackamas. This provision shall not limit the right of SYSTRAN to bring such
actions or proceedings against Customer in the court of such other states or
jurisdictions where Customer may be subject to jurisdiction. Customer expressly
authorizes service of process in any such suit or action on its behalf upon
Registered Agent: LOREN A. PIEL, at (address) 333 ORVILLE WRIGHT CT. LAS VEGAS,
NV 89119 or upon such other agent as SYSTRAN may approve in writing, as its
agent for such purposes and that service may be deemed complete upon delivery
via expedited national overnight delivery service.

22.  WAIVER NOTICE

     The waiver by SYSTRAN of the breach of any term of this Agreement or of
the compliance therewith shall not be constituted as a waiver of any other
breach of compliance. Notices from either party to the other shall be given in
writing and mailed prepaid, registered or certified mail, or placed in the
hands of a national overnight delivery service, addressed to the addresses set
forth opposite each party's name below, or at such other address as either
party may hereafter advise the other in writing.

23.  ASSIGNMENT

     Customer may not assign any of its rights or obligations hereunder.
SYSTRAN may assign or grant a security interest in this Agreement or in any of
The Bill(s) purchased by SYSTRAN. SYSTRAN may assign any of its rights and
remedies with respect to The Bill(s) including the right to notify Debtors to
make payment to SYSTRAN's assigns.

24.  SEVERABILITY

     The provisions of this Agreement are severable and if any of these
provisions shall be held by any court of competent jurisdiction to be
unenforceable such holding shall not affect or impair any other provisions
hereof.

25.  COMPLETE UNDERSTANDING

     This Agreement comprises the complete understanding among the parties and
may only be varied by a writing executed by the parties hereto. Paragraph
headings are for convenience only.

26.  THIRD PARTY CONSULTATION

     Customer hereby agrees and acknowledges that it has had the opportunity to
seek out and consult with legal counsel and/or independent business advisors of
its own choosing in connection with the negotiation, execution and delivery of
this Agreement. This Agreement shall be construed without regard to any
presumption or rule requiring that it be construed against the party causing
this Agreement, or any part hereof to be drafted.

27.  NO OFFER/COMMITMENT

     The presentation of this Agreement to Customer does not constitute either
an offer or commitment in purchase The Bill(s) or to extend to credit to
Customer.

28.  CREDIT INFORMATION

     Customer authorizes SYSTRAN or any of its affiliates to obtain credit
bureau reports, and make other credit inquiries that it determines are
necessary. On Customer's written request, SYSTRAN will inform Customer whether
SYSTRAN has requested a consumer credit report and the name and address of any
consumer credit reporting agency that published a report. Customer acknowledges
that without further notice SYSTRAN may use or request additional credit bureau
reports to update its information so ling as Customer obligations to SYSTRAN are
outstanding.

SYSTRAN FINANCIAL SERVICES CORPORATION  INNOVATIVE GAMING CORPORATION OF AMERICA

By: /s/ [SIGNATURE ILLEGIBLE]           By: /s/ [SIGNATURE ILLEGIBLE]
    --------------------------              --------------------------

Title: Vice President                   Title: Chairman and CEO
    ------------------------                --------------------------

Date: 6/19/01                           Date:  May 22, 2001
    ------------------------                --------------------------

Address: 4949 SW Meadows Drive          Address: 333 Orville Wright Ct.
Suite 500                               Las Vegas, NV 89119
Lake Oswego, Oregon 97035               Witnesses:

                                        By: /s/ [SIGNATURE ILLEGIBLE]
                                            ---------------------------

                                        By: /s/ [SIGNATURE ILLEGIBLE]
                                            ---------------------------

<PAGE>   7
                                  EXHIBIT "A"

                 TO THE FACTORING AGREEMENT DATED MAY 22, 2002

The Service Fee shall be equal to two point zero (2.0%) percent of the face
amount of all of The Bills purchased. In addition, SYSTRAN shall charge and
Customer shall pay a fee at an annual rate equal to prime plus two point zero
(2.0%) percent of all funds utilized by SYSTRAN to purchase The Bills. Price is
defined as the price rate as announced by Wells Fargo Bank N.A. Funds utilized
by SYSTRAN shall be calculated by SYSTRAN on a daily basis based upon all of
The Bills which are unpaid and outstanding, less the Deposit.

Innovative Gaming Corporation of America

By: /s/ ROLAND M. THOMAS
   ---------------------------

Title: Chairman and CEO
   ---------------------------

Date: May 22, 2002
   ---------------------------

<PAGE>   8
                        ADDENDUM TO FACTORING AGREEMENT

This Addendum is to the Factoring Agreement (the "Agreement"), dated 5/22/01
between Systran Financial Services Corporation ("SYSTRAN") and Innovative Gaming
Corporation of America, Inc. (the "Customer").

Customer and SYSTRAN agree that the following provision shall become a part of
the Factoring Agreement:

     GUARANTY OF XERTAIN, INC.

     Customer has represented to Systran that the its parent corporation IGCA
     Acquisition Corp. is presently in the process of acquiring all the
     outstanding shares of Xertain, Inc. Systran understands that once the
     acquisition is complete, Xertain, Inc. is to become a sister corporation to
     Customer. As a prerequisite for entering into the Agreement with Customer,
     Systran has required the guaranty of all Customer's obligations under the
     Agreement from its parent, IGCA Acquisition Corp. corporation. Customer
     understands that Systran will also require the guaranty of Xertain, Inc.
     once it is acquired as a condition of continuing the factoring relationship
     with Customer. Customer further understands that Systran must receive the
     executed Guaranty of Xertain, Inc. as soon as acquisition is complete or,
     in any event, no later than September 28, 2001. Failure to provide the
     Guaranty of Xertain, Inc. by the required date shall constitute an event of
     default under the Agreement and give rise to Systran being able to pursue
     all of its available legal remedies under the Agreement including the right
     to terminate the Agreement and otherwise enforce all of Customer's
     outstanding obligations.

        The parties agree that the terms of this Addendum shall be incorporated
in terms of the Agreement.

INNOVATIVE GAMING CORPORATION            SYSTRAN FINANCIAL SERVICES CORPORATION
OF AMERICAN

By: /s/  [SIGNATURE ILLEGIBLE]           By: /s/  [SIGNATURE ILLEGIBLE]
    ------------------------------           ------------------------------

Title: Chairman & CEO                    Title: Vice President
       ---------------------------              ---------------------------

Dated: May 22, 2002                      Dated: June 19, 2001
       ---------------------------              ---------------------------

<PAGE>   9
                     SYSTRAN FINANCIAL SERVICES CORPORATION
                          CORPORATE GUARANTY AGREEMENT

This Guaranty Agreement ("Guaranty") is made by Innovative Gaming, Inc.
("Guarantor"), whose address is set forth on the last page hereof.

Innovative Gaming Corporation of America ("Customer"), whose address is 333
Orville Wright Ct., Las Vegas, NV 89119 has applied to SYSTRAN Financial
Services Corporation and its affiliates, including but not limited to Textron
Financial Corporation ("SYSTRAN") for factoring services, and as a condition of
providing such services to Customer, SYSTRAN has required Guarantor to provide
a Corporate Guaranty on the terms and conditions hereinafter set forth.
(SYSTRAN requires the corporate guaranty because customer and guarantor are
affiliated corporations.)

Guarantor acknowledges and understands that this Guaranty is made for the
purpose of providing additional security to SYSTRAN to provide factoring
services to Customer.

Therefore, in consideration of providing such services to Customer, Guarantor
unconditionally covenants, warrants and agrees with SYSTRAN as follows:

     1.   The assumption by Guarantor of the obligations described herein will
          result in a direct financial benefit both to Guarantor and to
          Customer.

     2.   Guarantor hereby unconditionally guarantees to SYSTRAN the full and
          prompt performance of all obligations of Customer to SYSTRAN required
          under the Factoring Agreement. The obligation of Guarantor hereunder
          shall be absolute and unconditional and shall remain in full force
          and effect so long as Customer is receiving factoring services from
          SYSTRAN. Upon termination of Customer's Factoring Agreement with
          SYSTRAN, this Guaranty shall remain in full force and effect until
          all obligations of Customer to SYSTRAN have been discharged and
          satisfied in full and SYSTRAN has expressly acknowledged the same.

          The obligations of Guarantor hereunder shall not be affected by the
          voluntary or involuntary liquidation, dissolution, sale or other
          disposition of all or substantially all of the assets of Customer or
          by Customer's insolvency, receivership, bankruptcy, assignment for
          the benefit of creditors, or similar proceedings affecting Customer
          or any other Guarantor of Customer's obligations to SYSTRAN. The
          obligations of Guarantor shall remain in full force and effect
          without regard to any extension or modification of terms between
          SYSTRAN and Customer.

          Guarantor further unconditionally guarantees and agrees to pay
          SYSTRAN any and all payments or transfers made by Customer to SYSTRAN
          under the Factoring Agreement and/or the Deposit and Security
          Agreements contained therein, which payments and/or transfers are
          avoided as preferential transfers, fraudulent transfers or otherwise
          in a bankruptcy or other proceeding involving Customer, whether or
          not Customer's Factoring Agreement has been terminated, renounced or
          surrendered, or Customer has been discharged from its obligations
          thereunder.

     3.   No set off, counterclaim, reduction or diminution of any obligation
          or any defense of any kind or nature which Customer may have against
          SYSTRAN shall be available to Guarantor hereunder, and Guarantor
          hereby expressly waives the same as to SYSTRAN.

     4.   Guarantor waives notice of any kind of Guarantor personally and
          agrees that any notice given to Customer shall also be deemed
          adequate notice to Guarantor.

     5.   Guarantor agrees that this Guaranty shall be enforceable in the State
          of Oregon. Guarantor hereby agrees to be subject to the jurisdiction
          of the courts of Oregon for purposes of such enforcement.

     6.   If SYSTRAN retains the services of an attorney to enforce this
          Guaranty, Guarantor agrees to pay attorney's fees and other costs and
          expenses incurred by SYSTRAN even though no suit or action is filed.
          If a suit or action is filed, the prevailing party shall be entitled
          to recover, in addition to costs and expenses, such award of
          attorney's fees as the trial or appellate court decree reasonable.

     7.   Upon the occurrence of a default by Customer with respect to any of
          its obligations to SYSTRAN under the Factoring Agreement, SYSTRAN
          shall then have the immediate right to proceed first and directly
          against Guarantor under this Guaranty without proceeding against
          Customer or exhausting any other remedies which it may have against
          Customer's obligations to SYSTRAN.

          Guarantor hereby waives any claim, right or remedy which such
          Guarantor may now have or hereafter acquire against Customer that
          arises hereunder as a result of sums paid to SYSTRAN pursuant to this
          Guaranty including, without limitation, any claim, remedy or right of
          subrogation, reimbursement, exoneration, contribution,
          indemnification, or participation in any claim, right or remedy of
          SYSTRAN against Customer or any security which SYSTRAN now has or
          hereafter acquires, whether or not such claim, right or remedy arises
          in equity, under contract, by statute, under law or otherwise.

     8.   No remedy herein conferred upon SYSTRAN is intended to be exclusive of
          any other available remedy or remedies, but each and every such remedy
          shall be cumulative and shall be in addition to every other remedy
          given under this Guaranty, now or hereafter existing at low or in
          equity. No delay or omission by SYSTRAN to exercise any right accruing
          upon any default or failure of performance by Customer in SYSTRAN
          shall be construed to be a waiver thereof, but any such right and
          power may be exercised from time to time and as often as may be deemed
          to be expedient by SYSTRAN.

                                        Dated and Effective MAY 22, 2001
                                                           ---------------------

                                        GUARANTOR

                                        Innovative Gaming Inc.

                                         /s/ ROLAND M. THOMAS
                                        ----------------------------------------
                                        (Signature of Guarantor & Title)

                                         333 ORVILLE WRIGHT CT.
                                        ----------------------------------------
                                        (Address)

                                         LAS VEGAS, NV 89119
                                        ----------------------------------------
                                        (Address)

                                         (702) 614-7199
                                        ----------------------------------------
                                        (Area Code & Telephone Number)

                                       1
<PAGE>   10
Systran Financial Services Corporation
CORPORATE GUARANTY AGREEMENT Continued...

--------------------------------------------------------------------------------
                       (To be filled in by Notary Public)

State of Nevada

County of Clark

On this 22nd day of May, 2001, before me personally appeared Roland M. Thomas
whose identity is personally known to me (or proved to me on the basis of
satisfactory evidence) and who by me duly sworn (or affirmed) did say that he
(she) is the Chairman (title or office) of the Corporation and that said
document was signed by him (her) in behalf of said corporation by authority of
its bylaws or of a Resolution of its Board of Directors, and acknowledged to me
that said corporation executed the same.

                                                      ALLAN WELBORN
                                               ---------------------------
                                               (Signature of Notary Public

My Commission Expires:

Sept. 22, 2002
                                                        [STAMP]
Accepted:

SYSTRAN Financial Services Corporation

/s/ [SIGNATURE ILLEGIBLE], VP
--------------------------------
(Signature)

                                       2

<PAGE>   11
                        CERTIFIED COPY OF RESOLUTION OF

                               BOARD OF DIRECTORS

                        TO ACCOMPANY CORPORATE GUARANTY

I, the undersigned Secretary or Assistant Secretary of Innovative Gaming, Inc.
(the "Corporation"), HEREBY CERTIFY as follows: The Corporation is organized
and existing under and by virtue of the laws of the State of Nevada. The
Corporation has its principal office at 333 Orville Wright Court, Las Vegas
Nevada.

I FURTHER CERTIFY that at a meeting of the Directors of the Corporation (or by
other duly authorized corporate action in lieu of a meeting), duly called and
held on May 22, 2001, at which a quorum was present and voting, the following
resolutions were adopted:

BE IT RESOLVED, that any one (1) of the following named officers or employees
of this Corporation, whose actual signatures are show below:

<TABLE>
<CAPTION>

NAMES                       POSITIONS             SIGNATURES
-----                       ---------             ----------
<S>                       <C>                     <C>

----------------          President               --------------------

----------------          Vice President          --------------------

Loren A. Piel             Secretary                /s/ LOREN A. PIEL
----------------                                  --------------------

Roland M. Thomas          Chairman & CEO          /s/ ROLAND M. THOMAS
----------------          --------------          --------------------
</TABLE>

acting for and on behalf of this Corporation and as for its set and deed be, and
they hereby are, authorized and empowered in the name of the Corporation:

     Guaranty: To guarantee and act as surety for any and all indebtedness
     incurred by Innovative Gaming Corporation of America to SYSTRAN Financial
     Services Corporation and its affiliates, including but not limited to
     Textron Financial Corporation, at any time owing, including any extensions
     or modifications thereof, on such guaranty or surety terms as may be agreed
     upon between the officer or employees of this Corporation without limit
     (the "Guaranty").

     Further Acts. To do and perform such other acts and things and to execute
     and deliver such other documents as may in their discretion be deemed
     reasonably necessary or proper in order to carry into effect any of the
     provisions of these Resolutions.

BE IT FURTHER RESOLVED, that these Resolutions shall remain in full force and
effect until written notice of their revocation shall have been delivered to and
received by SYSTRAN Financial Services Corporation. Any such notice shall not
affect any of the Corporation's agreements or commitments in effect at the time
notice is given.

I FURTHER CERTIFY that these Resolutions are not in conflict with any provisions
of the Articles of Incorporation or By-Laws of the Corporation.

I FURTHER CERTIFY that the persons named above are principal officers of the
Corporation and occupy the positions set opposite their respective names; that
the foregoing Resolutions now stand of record on the books of the Corporation;
and that they are in full force and effect and have not been modified or revoked
in any manner whatsoever.

IN TESTIMONY WHEREOF, I have hereunto set my hand on May 22, 2001.

                                             /s/ LOREN A. PIEL
                                             --------------------------------
                                             Secretary or Assistant Secretary

================================================================================
                       (To be filled in by Notary Public)

State of Nevada

County of Clark

On the 22 day of May, 2001 before me personally appeared Loren A. Piel, whose
identity is personally known to me (or proved to me on the basis of satisfactory
evidence) and who by me duly sworn (or affirmed), did say that he (she) is the
secretary (title or office) of the corporation and that said document was signed
by him (her) in behalf of said corporation by authority of its bylaws or a
Resolution of its Board of Directors, and acknowledged to me that said
corporation executed the same.

My Commission Expires:        /s/ ALLEN WELBORN
                              -----------------         [NOTARY PUBLIC SEAL]
Sept. 22, 2002                  Notary Public
<PAGE>   12
                     SYSTRAN FINANCIAL SERVICES CORPORATION

                          CORPORATE GUARANTY AGREEMENT

This Guaranty Agreement ("Guaranty") is made by IOCA Acquisition Corp.
("Guarantor"), whose address is set forth on the last page hereof.

Innovative Gaming Corporation of American ("Customer").  Whose address is 333
Orville Wright Ct. Las Vegas, NV 89119 has applied to SYSTRAN Financial Service
Corporation and its affiliates, including but not limited to Textron Financial
Corporation ("SYSTRAN") for factoring services, and as a condition of providing
such services to Customer, SYSTRAN has required Guarantor to provide a
Corporate Guaranty on the terms and conditions hereinafter set forth. [SYSTRAN
requires the corporate guaranty because customer and guarantor are affiliated
corporations.]

Guarantor acknowledges and understands that this Guaranty is made for the
purpose of providing additional security to SYSTRAN to provide factoring
services to Customer.

Therefore, in consideration of providing such services to Customer, Guarantor
unconditionally covenants, warrants and agrees with SYSTRAN as follows:

     1.   The assumption by Guarantor of the obligations described herein will
          result in a direct financial benefit both to Guarantor and to
          Customer.

     2.   Guarantor hereby unconditionally guarantees to SYSTRAN the full and
          prompt performance of all obligations of Customer to SYSTRAN required
          under the Factoring Agreement. The obligation of Guarantor hereunder
          shall be absolute and unconditional and shall remain in full force and
          effect so long as Customer's receiving factoring services from
          SYSTRAN. Upon termination of Customer's Factoring Agreement with
          SYSTRAN, this Guaranty shall remain in full force and effect until all
          obligations of Customer to SYSTRAN have been discharged and satisfied
          in full and SYSTRAN has expressly acknowledged the same.

          The obligations of Guarantor hereunder shall not be affected by the
          voluntary or involuntary liquidation, dissolution, sale or other
          disposition of all or substantially all of the areas of Customer or
          by Customer's insolvency, receivership, bankruptcy, assignment for
          the benefit of creditors, or similar proceedings affecting Customer
          or any other Guarantor of Customer's obligations to SYSTRAN. The
          obligations of Guarantor shall remain in full force and effect
          without regard to any extension or modification of terms between
          SYSTRAN and Customer.

          Guarantor further unconditionally guarantees and agrees to pay SYSTRAN
          any and all payments or benefits made by Customer to SYSTRAN under the
          Factoring Agreement and/or the Deposit and Security/Agreements
          contained therein, which payments and/or transfers are avoided as
          preferential transfers, fraudulent transfers or otherwise in a
          bankruptcy or other proceeding involving Customer, whether or not
          Customer's Factoring Agreement has been terminated, renounced or
          surrendered or Customer has been discharged from its obligations
          thereunder.

     3.   No set off, counterclaim reduction or diminution of any obligation or
          any defense of any kind or nature which Customer may have against
          SYSTRAN shall be available to Guarantor hereunder, and Guarantor
          hereby expressly waives the same as to SYSTRAN.

     4.   Guarantor waives notice of any kind to Guarantor personally and
          agrees that any notice given to Customer shall also be deemed adequate
          notice to Guarantor.

     5.   Guarantor agrees that this Guaranty shall be enforceable to the State
          of Oregon. Guarantor hereby agrees to be subject to the jurisdiction
          of the courts of Oregon for purposes of such enforcement.

     6.   If SYSTRAN retains the services of an attorney to enforce this
          Guaranty, Guarantor agrees to pay attorney's fees and other costs and
          expenses incurred by SYSTRAN even though no suit or action is filed.
          If a suit or action is filed, the prevailing party shall be entitled
          to recover, in addition to costs and expenses, such award of
          attorney's fees as the trial or appellate court deems reasonable.

     7.   Upon the occurrence of a default by Customer with respect to any of
          its obligations to SYSTRAN under the Factoring Agreement, SYSTRAN
          shall then have the immediate right to proceed first and directly
          against Guarantor under this Guaranty without proceeding against
          Customer or exhausting any other remedies which it may have against
          Customer's obligations to SYSTRAN.

          Guarantor hereby waives any claims, right or remedy which such
          Guarantor may now have or hereafter acquire against Customer that
          arises hereunder as a result of sums paid to SYSTRAN pursue to this
          Guaranty including, without limitation, any claim remedy or right of
          subrogation, reimbursement, exoneration, contribution,
          indemnification, or participation in any claim, right or remedy of
          SYSTRAN against Customer or any security which SYSTRAN now has or
          hereafter acquires, whether or not such claim, right or remedy arises
          in equity, under contract, by statute, under law or otherwise.

     8.   No remedy herein conferred upon SYSTRAN is intended to be exclusive of
          any other available remedy or remedies, but each and every such remedy
          shall be cumulative and shall be in addition to every other remedy
          given under this Guaranty, now or hereafter existing at law or in
          equity. No delay or omission by SYSTRAN to exercise any right accruing
          upon any default of failure of performance by Customer to SYSTRAN
          shall be construed to be a waiver thereof, but any such right and
          power may be exercised from time to time and as often as may be deemed
          to be expedient by SYSTRAN.

                                        Dated and Effective   May 22, 2001

                                        GUARANTOR:

                                        IGCA Acquisition Corp.

                                         [Signature Illegible]
                                        ---------------------------------------
                                        (Signature of Guarantor & Title)

                                         333 Orville Wright Ct.
                                        ---------------------------------------
                                        (Address)

                                         Las Vegas, NV 89119
                                        ---------------------------------------
                                        (Address)

                                         (702) 614-7199
                                        ---------------------------------------
                                        (Area Code & Telephone Number)

                                       1
<PAGE>   13
Systran Financial Services Corporation
CORPORATE GUARANTY AGREEMENT Continued...

--------------------------------------------------------------------------------
                       (To be filled in by Notary Public)

State of Nevada

County of Clark

On this 22nd day of May, 2001, before me personally appeared Roland M. Thomas
whose identity is personally known to me (or proved to me on the basis of
satisfactory evidence) and who by me duly sworn (or affirmed) did say that he
(she) is the Chairman (title or office) of the Corporation and that said
document was signed by him (her) in behalf of said corporation by authority of
its bylaws or of a Resolution of its Board of Directors, and acknowledged to me
that said corporation executed the same.

                                                      ALLAN WELBORN
                                               ---------------------------
                                               (Signature of Notary Public

My Commission Expires:

Sept. 22, 2002
                                                        [STAMP]
Accepted:

SYSTRAN Financial Services Corporation

/s/ [SIGNATURE ILLEGIBLE], VP
--------------------------------
(Signature)

                                       2

<PAGE>   14
                        CERTIFIED COPY OF RESOLUTION OF

                               BOARD OF DIRECTORS

                        TO ACCOMPANY CORPORATE GUARANTY

I, the undersigned Secretary or Assistant Secretary of IGCA Acquisition Corp.
(the "Corporation"), HEREBY CERTIFY as follows: The Corporation is organized and
existing under and by virtue of the laws of the State of Nevada. The Corporation
has its principal office at 333 Orville Wright Court, Las Vegas Nevada 89119.

I FURTHER CERTIFY that at a meeting of the Directors of the Corporation (or by
other duly authorized corporate action in lieu of a meeting), duly called and
held on May 22, 2001, at which a quorum was present and voting, the following
resolutions were adopted:

BE IT RESOLVED, that any one (1) of the following named officers or employees
of this Corporation, whose actual signatures are show below:

<TABLE>
<CAPTION>

NAMES                       POSITIONS             SIGNATURES
-----                       ---------             ----------
<S>                       <C>                     <C>

----------------          President               --------------------

----------------          Vice President          --------------------

Loren A. Piel             Secretary                /s/ LOREN A. PIEL
----------------                                  --------------------

Roland M. Thomas          Chairman & CEO          /s/ ROLAND M. THOMAS
----------------          --------------          --------------------
</TABLE>

acting for and on behalf of this Corporation and as for its set and deed be, and
they hereby are, authorized and empowered in the name of the Corporation:

     Guaranty: To guarantee and act as surety for any and all indebtedness
     incurred by Innovative Gaming Corporation of America to SYSTRAN Financial
     Services Corporation and its affiliates, including but not limited to
     Textron Financial Corporation, at any time owing, including any extensions
     or modifications thereof, on such guaranty or surety terms as may be agreed
     upon between the officer or employees of this Corporation without limit
     (the "Guaranty").

     Further Acts. To do and perform such other acts and things and to execute
     and deliver such other documents as may in their discretion be deemed
     reasonably necessary or proper in order to carry into effect any of the
     provisions of these Resolutions.

BE IT FURTHER RESOLVED, that these Resolutions shall remain in full force and
effect until written notice of their revocation shall have been delivered to and
received by SYSTRAN Financial Services Corporation. Any such notice shall not
affect any of the Corporation's agreements or commitments in effect at the time
notice is given.

I FURTHER CERTIFY that these Resolutions are not in conflict with any provisions
of the Articles of Incorporation or By-Laws of the Corporation.

I FURTHER CERTIFY that the persons named above are principal officers of the
Corporation and occupy the positions set opposite their respective names; that
the foregoing Resolutions now stand of record on the books of the Corporation;
and that they are in full force and effect and have not been modified or revoked
in any manner whatsoever.

IN TESTIMONY WHEREOF, I have hereunto set my hand on May 22, 2001.

                                             /s/ LOREN A. PIEL
                                             --------------------------------
                                             Secretary or Assistant Secretary

================================================================================
                       (To be filled in by Notary Public)

State of Nevada

County of Clark

On the 22 day of May, 2001 before me personally appeared Loren A. Piel, whose
identity is personally known to me (or proved to me on the basis of satisfactory
evidence) and who by me duly sworn (or affirmed), did say that he (she) is the
secretary (title or office) of the corporation and that said document was signed
by him (her) in behalf of said corporation by authority of its bylaws or a
Resolution of its Board of Directors, and acknowledged to me that said
corporation executed the same.

My Commission Expires:        /s/ ALLEN WELBORN
                              -----------------         [NOTARY PUBLIC SEAL]
Sept. 22, 2002                  Notary Public
<PAGE>   15
           BILLS, ACCOUNTS, AND ACCOUNTS RECEIVABLE VALIDITY GUARANTY

     This Bills, Accounts and Accounts Receivable Validity Guaranty (this
"Agreement") is executed as of May 22, 2001, by the undersigned guarantor(s)
(individually and collectively, "Guarantor") in favor of Systran Financial
Services Corporation and its affiliates ("SYSTRAN"). Capitalized terms not
defined herein shall have the respective meanings set forth in the Factoring
Agreement (as hereinafter defined).

                                    RECITALS

     A.   SYSTRAN and Innovative Gaming Corporation of America ("Customer")
have entered or will enter into a Factoring Agreement (the "Factoring
Agreement"), pursuant to which SYSTRAN will provide accounts receivable
financing to Customer (the "Financing"); and

     B.   The Financing is or will be secured by, among other things, all
Bills, accounts and accounts receivable in which Customer now or hereafter has
rights.

                                   AGREEMENTS

     With knowledge that SYSTRAN will provide Financing to Customer in
reliance upon the existence of this Agreement, Guarantor agrees with SYSTRAN as
follows:

     1.   Representation, Warrant, and Guaranty. Guarantor represents, warrants
          and guarantees to SYSTRAN that:

          a.  Each of Customer's Bills submitted to SYSTRAN will: (i) be
     genuine, complete and, in all other respects, what it purports to be; (ii)
     be for an undisputed claim in the amount that Customer indicates to be
     owing to Customer; (iii) be free and clear of liens, claims and security
     interests of any party other than SYSTRAN; (iv) have arisen from the sale
     and delivery of goods or from services rendered by Customer in the
     ordinary course of Customer's business; (v) not be subject to any offset
     or defense, or be contingent upon the fulfillment of any condition; (vi)
     not involve an account debtor that controls, is controlled by, or is under
     common control with Customer, or that is an employee, agent, owner or
     shareholder of Customer; (vi) not constitute "chattel paper" or an
     "instrument", as those terms are defined in the Uniform Commercial Code.

            b.  All cash, drafts and other revenues received by Customer from
     any source and for any reason will be forwarded to SYSTRAN in accordance
     with the terms of the Factoring Agreement.

            c.  Guarantor hereby unconditionally guarantees to SYSTRAN the full
     and prompt performance of all obligations of Customer to SYSTRAN required
     under the Factoring Agreement to the extent such obligations arise from or
     are related to any and all acts of fraud and/or misrepresentation performed
     by Customer, its officers, directors, employees, affiliates, or any other
     person or entity acting for or on behalf of Customer in any capacity.

Guarantor will reimburse SYSTRAN, upon demand, for all loss and damage
which SYSTRAN incurs as the result of the breach of any of the warranties of
Warrantor set forth in this Agreement.

     2.   Continuing Nature of Agreement. This Agreement is a continuing
agreement and shall apply without regard to the form or the amount of the
Bills, accounts or accounts receivable in existence at any time. Guarantor may
prospectively revoke this Agreement by sending written notice to SYSTRAN, by
certified mail return receipt requested, at the address of SYSTRAN specified
below (the "Revocation Notice"). The revocation of this Agreement shall not be
effective with respect to any Bills, accounts or

1 - 8504 VALIDITY GUARANTY (3-26-01)

<PAGE>   16
accounts receivable submitted to SYSTRAN by Customer on or prior to the date
occurring fifteen (15) days after SYSTRAN's receipt of the Revocation Notice.

     3.   Absolute Nature of Agreement. The representations, warranties and
guarantees of Guarantor under this Agreement are absolute and unconditional and,
if there is more than one Guarantor, are joint and several. Guarantor shall not
be released from such representations, warranties or guarantees for any reason,
nor shall such representations, warranties or guarantees be reduced, diminished
or discharged for any reason, including:

          a.   Modifications and Indulgences. Any modification, renewal or
     alteration of the Factoring Agreement, any other agreement pertaining to
     the Factoring or any Bills, accounts or accounts receivable, or any
     indulgence, adjustment, preference, extension or compromise made by SYSTRAN
     in favor of Customer or any account debtor associated with any Bills,
     accounts or accounts receivable (an "Account Debtor").

          b.   Composition of Customer or Guarantor. Any sale, lease or other
     disposition of any of the assets of Customer or Guarantor; any
     reorganization of, or change in the composition of the shareholders,
     partners or members of, Customer or Guarantor; or any termination of, or
     other change in, the relationship between Customer and Guarantor.

          c.   Audit of Customer. The failure of any audit of the accounts,
     inventory, revenues or the books and records of Customer to disclose
     irregularities or wrong-doing by Customer.

     4.   Waivers. Guarantor waives:

          a.   Action Against Others. Any right to require SYSTRAN to: Institute
     suit or exhaust remedies against Customer or any Account Debtor, enforce
     SYSTRAN's rights in any security which is at any time given to secure any
     obligations of Customer owing to SYSTRAN; join Customer or any other party
     in any action seeking to enforce this Agreement; or exhaust any other
     remedies available to SYSTRAN or resort to any other means of obtaining
     payment or performance under the Factoring Agreement.

          b.   Notices. Notice of the amount of credit extended by SYSTRAN to
     Customer at any time, whether primary or secondary; notice of the
     modification or extension of any Factoring or Bills, accounts or accounts
     receivable; notice of a default or other non-performance by Customer in
     connection with the Factoring Agreement or by an Account Debtor in
     connection with a Bill, account or account receivable; notice of the
     acceptance of this Agreement by SYSTRAN; demand and presentation for
     payment upon Customer, any Account Debtor or any other party liable for any
     Bill, account or account receivable; protest, notice of protest and
     diligence of bringing suit against Customer, any Account Debtor or any
     other party; and any other action or inaction on the part of SYSTRAN in
     connection with the Factoring Agreement or any Bill, account or account
     receivable.

     5.   Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT UNDER
THE LAWS OF THE STATE OF OREGON AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THAT STATE. CUSTOMER IRREVOCABLY AGREES
THAT ANY LEGAL ACTION OR PROCEEDING BROUGHT BY OR AGAINST CUSTOMER WITH RESPECT
TO THE AGREEMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF OREGON OR IN THE
U.S. DISTRICT COURT FOR THE DISTRICT OF OREGON. CUSTOMER CONSENTS TO THE
JURISDICTION OF SUCH COURTS AND THAT THE VENUE FOR ANY SUCH ACTION SHALL BE THE
COUNTY OF CLACKAMAS. THIS PROVISION SHALL NOT LIMIT THE RIGHT OF SYSTRAN TO
BRING SUCH ACTIONS OR PROCEEDINGS AGAINST CUSTOMER IN THE COURT OF SUCH OTHER
STATES OR JURISDICTIONS WHERE CUSTOMER MAY BE SUBJECT TO JURISDICTION.

     6.   Jury Trial Waiver. In recognition of the higher costs and delay which
may result from a jury trial, the parties waive any right to trial by jury of
any claim, demand, action or cause of action (A) arising

2 - 8504 VALIDITY GUARANTY (3-28-01)

<PAGE>   17
hereunder, or (B) in any way connected with or related or incidental to the
dealings of the parties hereto or any of them with respect hereto, in each case
whether now existing or hereafter arising, and whether sounding in contract or
tort or otherwise; and each party further waives any right to consolidate any
such action in which a jury trial has been waived with any other action in
which a jury trial cannot be or has not been waived; and each party hereby
agrees and consents that any such claim, demand, action or cause of action
shall be decided by court trial without a jury, and that any party hereto may
file an original counterpart or a copy of this section with any court as
written evidence of the consent of the parties hereto to the waiver of their
right to trial by jury.

     10.  Credit Information. By signing this guaranty, Guarantor authorizes
SYSTRAN, or any of its affiliates, to obtain credit bureau reports, and make
other credit inquiries that SYSTRAN determines are necessary. On Guarantor's
written request, SYSTRAN will inform Guarantor whether it has requested a
consumer credit report and the name and address of any consumer credit
reporting agency that published a report. Guarantor acknowledges that without
further notice SYSTRAN may use or request additional credit bureau reports to
update our information so long as Guarantor obligations to SYSTRAN are
outstanding.

     The undersigned, pursuant to due corporate authority, as appropriate, has
or have caused this Agreement to be executed as of the date set forth above.

WITNESS(ES)                                INDIVIDUAL GUARANTOR(S):

 /s/ LOREN A. PIEL                          /s/ ROLAND M. THOMAS
-------------------------------------      -------------------------------------

Print Name: Loren A. Piel                  Print Name: Roland M. Thomas
            -------------------------                  -------------------------

Home Address: 8312 EMERALD ISLE AVE.       Home Address: 2425 LA CASA
             ------------------------                   ------------------------
              LAS VEGAS, NV 89118                        HENDERSON, NV 89014
             ------------------------                   ------------------------

 /s/ ALLEN WELBORN
-------------------------------------

Print Name: Allen Welborn
            -------------------------

Home Address: 5383 MTN. VISTA 12
             ------------------------
              LAS VEGAS, NV 89120
             ------------------------

--------------------------------------
ADDRESS FOR NOTICES TO SYSTRAN:

SYSTRAN FINANCIAL SERVICES CORPORATION
ATTN: RISK MANAGER
4949 SW MEADOWS ROAD, SUITE 500
LAKE OSWEGO, OREGON 97035
P.O. BOX 3289
PORTLAND, OR 97208
--------------------------------------

3--8504 VALIDITY GUARANTY (3-28-01)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]