Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

[Richard
Baldwin]

THIS AGREEMENT is made and
entered into as of the 30th day of November 2006, by and between Shuffle
Master, Inc., a Minnesota corporation (the “Company”), and Richard Baldwin (the
“Employee”), a resident of the State of Nevada.

RECITALS:

A.            The Company is in the
business of developing, manufacturing, distributing and otherwise
commercializing gaming equipment, games, and technology systems for gaming
equipment and related products and services throughout the world (the “Business”).

B.            Company and Employee
want to create an at-will employment relationship that protects the Company
with appropriate confidentiality and non-compete covenants, and compensates the
Employee for performing his obligations for the full term of this contract or
such shorter term, as may be determined in accordance with the terms and
conditions of this Agreement.

C.            The Company and
Employee desire that Employee be employed by the Company on the terms and
conditions of this Agreement.

AGREEMENT

In
consideration of the mutual promises contained herein, Employee and the Company
agree as follows:

1.             Employment.  The Company hereby employs Employee as its
Chief Financial Officer reporting to the Chief Executive Officer of the
Company, or his designee and when and as appropriate, to the Board of Directors
and Audit Committee.  Employee shall
perform the normal duties of that position. 
Subject to the other terms and conditions hereof, Employee’s employment
under this Agreement with the Company is for an initial term of approximately
two years (the “Term”), beginning November 1, 2006 (the “Commencement Date”),
through October 31, 2008.

2.             Salary, Bonus and Benefits.

a.               From the
Commencement Date and if employed through October 31, 2007, Employee shall be
paid an annual base salary of Two Hundred Seventy Thousand Dollars
($270,000.00), paid in the same intervals as other employees of the Company;
and if employed through October 31, 2007, Employee will also be eligible to
receive an executive bonus in accordance with the terms and conditions of the
executive bonus program authorized by the Board of Directors of the Company
(the “Board”) for other senior management executives of the Company for fiscal
year 2007, in a range of percentages, but with a target bonus of 50% of
Employee’s base salary.

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b.              For any period from
November 1, 2007 through October 31, 2008, Employee will receive an annual base
salary of no less than his annual base salary for the first year of this
Agreement, and will also be eligible to participate in an executive bonus
program and/or in an individual performance bonus program as authorized by the
Board for said period.

c.               Any stock option
grants, if any, will be at the sole discretion of the Board.

d.              Any stock options
granted at any time to Employee shall vest in accordance with the terms and
conditions set forth in the applicable grant by the Board and, as otherwise may
be applicable, with any relevant terms and conditions of Shuffle Master, Inc.’s
2004 Equity Incentive Plan (the “Plan”).

e.               The Company agrees
to provide Employee with the same benefits it provides all of the other members
of its senior management executive team. 
Employee will not, however, be eligible to participate in the Company’s
non-executive bonus program.

f.                 Employee’s salary
is set in the expectation that Employee’s full professional time will be
devoted to Employee’s duties hereunder.

g.              During Employee’s
employment with the Company, the Company will promptly pay or reimburse
Employee for reasonable travel and other expenses incurred by Employee in the
furtherance of or in connection with the performance of Employee’s duties.  Such reimbursement will be in accordance with
Company policies in existence from time to time.

h.              [Intentionally
Omitted]

i.                  Notwithstanding
any other provision contained herein, Employee shall be and is an employee “at
will,” terminable at any time, with or without just cause or notice.

3.             Outside
Services or Consulting.  Employee
shall devote Employee’s full professional time and best professional efforts to
the Company.  Employee may render other
professional or consulting services to other persons or businesses from time to
time during the Term, only if Employee meets all of the following requirements:

a.               The services do not
interfere in any manner with the Employee’s ability to fulfill all of his
duties and obligations to the Company.

b.              The services are not
rendered to any business which may compete with the Company in any area of the
Business or do not otherwise violate paragraph 4 hereof.

c.               The services do not
relate to any products or services, which form part of the Business.

d.              Employee informs and
obtains the prior written consent of the Chief Executive Officer of the
Company.

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4.             Non-competition.  In consideration of the provisions of this
Agreement, Employee hereby agrees that he shall not, during the term of his
full-time employment and for a period of twenty-four (24) months thereafter:

a.               Directly or
indirectly own, manage, operate, participate in, consult with or work for any
business, which is engaged in the Business anywhere in the United States or
Canada.

b.              Either alone or in
conjunction with any other person, partnership or business, directly or
indirectly, solicit, hire, or divert or attempt to solicit, hire or divert any
of the employees, independent contractors, or agents of the Company (or its
affiliates or successors) to work for or represent any competitor of the
Company (or its affiliates or successors), or to call upon any of the customers
of the Company (or its affiliates or successors).

c.               Directly or
indirectly provide any services to any person, company or entity, which is
engaged in the Business anywhere in the United States or Canada.

5.             Confidentiality; Inventions.

a.               Employee shall
fully and promptly disclose to the Company all inventions, discoveries,
software and writings that Employee may make, conceive, discover, develop or
reduce to practice either solely or jointly with others during Employee’s
employment with the Company, whether or not during usual work hours.  Employee agrees that all such inventions,
discoveries, software and writing shall be and remain the sole and exclusive
property of the Company, and Employee hereby agrees to assign, and hereby assigns
all of Employee’s right, title and interest in and to any such inventions,
discoveries, software and writings to the Company.  Employee agrees to keep complete records of
such inventions, discoveries, software and writings, which records shall be and
remain the sole property of the Company, and to execute and deliver, either
during or after Employee’s employment with the Company, such documents as the
Company shall deem necessary or desirable to obtain such letters patent,
utility models, inventor’s certificates, copyrights, trademarks or other
appropriate legal rights of the United States and foreign countries as the
Company may, in its sole discretion, elect, and to vest title thereto in the
Company, its successors, assigns, or nominees.

b.              “Inventions,” as
used herein, shall include inventions, discoveries, improvements, ideas and
conceptions, developments and designs, whether or not patentable, tested,
reduced to practice, subject to copyright or other rights or forms of
protection, or relating to data processing, communications, computer software
systems, programs and procedures.

c.               Employee
understands that all copyrightable work that Employee may create while employed
by the Company is a “work made for hire,” and that the Company is the owner of
the copyright therein.  Employee hereby assigns
all right, title and interest to the copyright therein to the Company.

d.              Employee has no
inventions, improvements, discoveries, software or writings useful to the
Company or its subsidiaries or affiliates in the normal course of business,
which were conceived, made or written prior to the date of this Agreement.

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e.               Employee will not
publish or otherwise disclose, either during or after Employee’s employment
with the Company, any published or proprietary or confidential information or
secret relating to the Company, the Business, the Company’s operations or the
Company’s products or services.  Employee
will not publish or otherwise disclose proprietary or confidential information
of others to which Employee has had access or obtained knowledge in the course
of Employee’s employment with the Company. 
Upon termination of Employee’s employment with the Company, Employee
will not, without the prior written consent of the Company, retain or take with
Employee any drawing, writing or other record in any form or nature which
relates to any of the foregoing.

f.                 Employee
understands that Employee’s employment with the Company creates a relationship
of trust and confidence between Employee and the Company.  Employee understands that Employee may
encounter information in the performance of Employee’s duties that is
confidential to the Company or its customers. 
For the Term hereof, and until the information falls into the public
domain, Employee agrees to maintain in confidence all information pertaining to
the Business or the Company to which Employee has access including, but not
limited to, information relating to the Company’s products, inventions, trade
secrets, know how, systems, formulas, processes, compositions, customer
information and lists, research projects, data processing and computer software
techniques, programs and systems, costs, sales volume or strategy, pricing,
profitability, plans, marketing strategy, expansion or acquisition or
divestiture plans or strategy and information of similar nature received from
others with whom the Company does business. 
Employee agrees not to use, communicate or disclose or authorize any
other person to use, communicate or disclose such information orally, in
writing, or by publication, either during Employee’s employment with the
Company or thereafter except as expressly authorized in writing by the Company
unless and until such information becomes generally known in the relevant trade
to which it relates without fault on Employee’s part, or as required by law.

6.             Termination
or Non-Extension by Company Without Just Cause

a.               Employee’s
employment by the Company is “at will;” therefore, the Company shall have the
right to terminate Employee’s full-time employment at any time either with or
without just cause. In the event of any termination of Employee’s full-time
employment with the Company without just cause, or in the event that Employee’s
full-time employment is not extended or renewed beyond the Term on terms at
least as favorable to Employee as Employee is receiving during the last year of
the Term, then Employee will remain bound to the covenants not to compete and
confidentiality obligations of paragraphs 4 and 5 of this Agreement, according
to their terms, and each one of the following shall apply:

i.              Employee
shall be paid an amount equal to one year of his then annual base salary paid
over a period of  twenty-four (24) months
from Employee’s termination in equal monthly installments and at the same
intervals as other employees of the Company are then being paid their base
salaries;

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ii.             Employee
shall continue to receive, during the twenty-four (24) months from Employee’s
termination, all medical insurance and any other benefits or insurance
coverages which Employee would have received had his employment not been so
terminated, or not extended, provided however, if the Employee is not eligible
for said medical insurance, the Company shall pay the COBRA premiums for
continuation coverage during the said twenty-four (24) month period (for the
avoidance of doubt, the Company and Employee agree that it is the intent of
this language and of this paragraph 6(a), and that this language means, that
Employee will continue to vest in previous stock option and restricted stock
awards during said 24-month period after Employee’s termination);

iii.            Employee
shall receive additional compensation for his covenant not to compete equal to
the average annual bonus which Employee has received for the three most recent
full fiscal years during which Employee was employed, provided however that if
Employee is terminated without just cause prior to October 31, 2007, then, in
lieu of the above, the Company shall use, for Employee’s additional
compensation, the amount that results from taking twice Employee’s FY 2005
bonus of $101,538.64, adding the amount of Employee’s FY 2006 bonus, and then
dividing by 3.  The amount due under this
paragraph 6(a)(iii) shall be paid in the same intervals as other employees of
the Company are then being paid their base salaries;

iv.            Notwithstanding
anything else contained herein to the contrary, during the 24-month period
referred to in this paragraph 6, Employee shall remain a part-time employee of
the Company’s and, subject to Employee’s other professional duties, shall be
available to the Chief Executive Officer of the Company.

b.              For purposes hereof,
any of the following acts or events shall, at Employee’s option, constitute a
termination without just cause under this paragraph 6:

i.              any
material diminution or reduction of Employee’s title, position, duties or
responsibilities, except as caused by the acts or omissions of Employee; or

ii.             any
material breach by Company of this Agreement that is not cured within thirty
(30) days after written notice by Employee of such breach.

c.               In the event that,
at the end of the Term, the Company elects not to extend or renew Employee’s
full-time employment beyond the Term on terms at least favorably to Employee as
Employee is receiving during the last fiscal year of the Term, then such
non-renewal shall be treated as a termination without cause.  In such case, the provisions of paragraphs
6(a)(i) through (iv) shall apply and Employee shall be bound to the provisions
of paragraphs 4 and 5 hereof for the period of time during which Employee is
being paid pursuant to paragraph 6(a).

7.             Early
Termination by Company for Just Cause.  At any time, the Company may terminate
Employee for just cause.  In the event,
at any time, that the Company terminates the Employee for just cause, the
Employee will remain bound under the provisions of paragraphs 4 and 5, but will
not be entitled to any compensation or benefits following his termination of
employment

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under this
Agreement.  Termination for “just cause”
shall mean any one of the following, with each one of the following being deemed
separate, independent and non-repetitive of any other one:

a.               dishonesty as to a
matter which is materially injurious to the Company;

b.              the commission of an
act or an omission intended or reasonably likely to materially injure the
business or reputation of the Company;

c.               a violation of any
of the material provisions of this Agreement;

d.              a determination in
good faith by the Board that the Employee has failed to fully or adequately
perform his duties as assigned to him by either the CEO or the Board, which
failure is not remedied by the Employee within thirty (30) days following the
CEO’s written notice stating such alleged failure;

e.               the commission of
an act or an omission which actually or potentially puts at risk any of the
Company’s gaming licenses or regulatory approvals;

f.                 any breach of any
fiduciary duty owed by Employee to the Company;

g.              Employee’s
conviction of a crime involving moral turpitude to the extent that, in the
reasonable judgment of the Company’s Board, the Employee’s credibility or
reputation is no longer at an adequate level in order for Employee to represent
the Company to the public at Employee’s current position;

h.              a repeated and
knowing violation of any material Company policy, applicable to the Employee;
or

i.                  the loss, revocation,
suspension of or failure to obtain any license or certification of Employee
necessary for Employee to discharge Employee’s duties.

8.             Voluntary
Termination by Employee.

a.               In the event
Employee voluntarily terminates, at any time, his employment with the Company,
Employee will remain bound under the provisions of paragraphs 4 and 5 hereof,
but will not be entitled to receive any compensation and benefits following his
termination of employment except for any payments or benefits required by law.

b.              Voluntary
termination means an intentional termination by the Employee without good
reason and without pressure by the Company; and further, provided that, prior
to any such termination, there was not a material breach of this Agreement by
the Company, which the Company failed to reasonably cure after written notice
thereof.

9.             Cooperation
with Change in Control. 
Employee will reasonably cooperate with the Company in the event of a
change in control.

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10.           No
Conflicting Agreements. 
Employee has the right to enter into this Agreement, and hereby confirms
Employee has no contractual or other impediments to the performance of Employee’s
obligations including, without limitation, any non-competition or similar
agreement in favor of any other person or entity.

11.           Company
Policies.  During the term of
Employee’s employment, Employee shall engage in no activity or employment which
may conflict with the interest of the Company, and Employee shall comply with
all policies and procedures of the Company including, without limitation, all
policies and procedures pertaining to ethics.

12.           Independent
Covenants.  The covenants and
agreements on the part of the Employee contained in paragraphs 4 and 5 hereof
shall be construed as agreements independent of any other provision in this
Agreement; thus, it is agreed that the relief for any claim or cause of action
of the Employee against the Company, whether predicated on this Agreement or
otherwise, shall be measured in damages and shall not constitute a defense or
bar to enforcement by the Company of those covenants and agreements.

13.           Injunctive
Relief; Attorneys’ Fees.  In
recognition of the irreparable harm that a violation by Employee of any of the
covenants contained in either paragraphs 4 or 5 hereof would cause the Company,
the Employee agrees that, in addition to any other relief afforded by law, an
injunction (both temporary and permanent) against such violation or violations
may be issued against him or her and every other person and entity concerned
thereby, it being the understanding of the parties that both damages and an
injunction shall be proper modes of relief and are not to be considered
alternative remedies.  Employee consents
to the issuance of such injunctive relief without the posting of a bond or
other security.  In the event of any such
alleged violation, THE LOSING PARTY AGREES TO PAY THE COSTS, EXPENSES AND
REASONABLE ATTORNEYS’ FEES INCURRED BY THE PREVAILING PARTY IN PURSUING OR
DEFENDING ANY OF ITS RIGHTS WITH RESPECT TO SUCH ALLEGED VIOLATIONS, IN
ADDITION TO THE ACTUAL DAMAGES SUSTAINED BY THE PREVAILING PARTY AS A RESULT
THEREOF.

14.           Notice.  Any notice sent by registered mail to the
last known address of the party to whom such notice is to be given shall
satisfy the requirements of notice in this Agreement.

15.           Entire
Agreement.  This Agreement is
the entire agreement of the parties hereto concerning the subject matter hereof
and supersedes and replaces in its entirety any oral or written prior or
existing agreements or understandings between the Company and the Employee
relating generally to the same subject matter. 
Company and Employee hereby acknowledge that there are no agreements,
promises, representations or understandings of any nature, oral or written,
regarding Employee’s employment, apart from this Agreement, and Employee
acknowledges that no promises, representations or agreements not contained in
this Agreement have been made or offered by the Company.

16.           Severability.  It is agreed and understood by the parties
hereto that if any provision of this Agreement should be determined by an
arbitrator or court to be unenforceable in whole or in part, it shall be deemed
modified to the minimum extent necessary to make it reasonable and enforceable
under the circumstances, and the court shall be authorized by the parties to
reform this Agreement in the least way necessary in order to make it reasonable
and enforceable.

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17.           Governing
Law.  This Agreement shall be
construed and enforced in accordance with the laws of the State of Nevada,
without giving effect to the principles of conflicts of laws thereof.

18.           Heirs,
Successors and Assigns.  The
terms, conditions, obligations, agreements and covenants hereof shall extend
to, be binding upon, and inure to the benefit of the Company and its successors,
assigns, and/or acquirers, including any entity which acquires, merges with, or
obtain control of the Company.

19.           Waiver of
Breach.  The waiver by either
the Company or the Employee of any breach of any provision of this Agreement
shall not operate as or be deemed a waiver of any subsequent breach by either
the Company or the Employee.

20.           Dispute
Resolution.  Except for the
Company’s right (either pursuant to paragraph 13 hereof or otherwise) to
injunctive relief to enforce the provisions of paragraphs 4 and 5 hereof, the
exclusive forum for the resolution of any dispute arising under this Agreement
or any question of interpretation regarding the provisions of this Agreement
(other than disputes relative to paragraphs 4 or 5 hereof) shall be resolved by
arbitration, to be held in Clark County, Nevada, in accordance with the
applicable rules of the American Arbitration Association (“AAA”).  Such arbitration shall be before an
arbitrator, chosen in accordance with the rules then in effect of the AAA.  In the event the Employee and Company fails
within a reasonable period of time to agree on an arbitrator, the arbitrator
shall be chosen by the AAA.  The decision
of the arbitrator shall be final, conclusive and binding upon the Company and
Employee.

21.           Amendment.  This Agreement may be amended only by a
document in writing signed by both the Employee and a Corporate Officer (other
than Employee) of the Company, and no course of dealing or conduct of the
Company shall constitute a waiver of any of the provisions of this Agreement.

22.           Fees and Costs.  In
any action bought by one party against the other pursuant

to this Agreement or in the event of any dispute over
the meaning of this Agreement, the successful party, in addition to recovering
its awarded damages and other relief, shall be entitled to recover its attorney’s
fees and costs from the unsuccessful party.

23.           D & O Policy. 
During Employee’s employment with the Company, the Company shall
maintain director and officer liability insurance.

24.           Non-Disparagement
and Cooperation.

a.               During any period
of time wherein the Company is paying any base salary to Employee, whether
during the Term hereof or during any time after the termination or expiration
of this Agreement, and for a period of three (3) years thereafter, Employee
shall not disparage or otherwise make any negative comments about the Company,
its policies, products, employees or management.  The Company may enforce these
non-disparagement provisions by resort to injunctive relief as set forth in paragraph
13, in addition to any other damages that it may be entitled to under this
Agreement or otherwise at law.

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b.              Employee agrees to
fully cooperate with the Company and its affiliates during the entire scope and
duration of any litigation or administrative proceedings involving any matters
with which Employee was involved during Employee’s employment with the Company.

c.               In the event
Employee is contacted by parties or their legal counsel involved in litigation
adverse to the Company or its affiliates, Employee (i) agrees to provide notice
of such contact as soon as practicable; and (ii) acknowledges that any
communication with or in the presence of legal counsel for the Company
(including without limitation the Company’s outside legal counsel, the Company’s
inside legal counsel, and legal counsel of each related or affiliated entity of
the Company) shall be privileged to the extent recognized by law and, further,
will not do anything to waive such privilege unless and until a court of
competent jurisdiction decides that the communication is not privileged.  In the event the existence or scope of the
privileged communication is subject to legal challenge, then the Company must
either waive the privilege or pursue litigation to protect the privilege at the
Company’s sole expense.

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the day, month and year first above
written.

 

	
  EMPLOYER:

  	
   

  	
  EMPLOYEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SHUFFLE
  MASTER, INC.

  	
   

  	
  RICHARD BALDWIN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark L.
  Yoseloff

  	
   

  	
  By:

  	
  /s/ Richard Baldwin

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
  CEO

  	
   

  	
  Its:

  	
  Senior Vice President and CFO

  	
   

  	
   

  
								

 

 9Exhibit 4.4

CONFIRMATION NOTICE AND ELECTION FORM

[Date]

[Name and Address of
Subscriber]

RE:          Your subscription(s) for capital units
of Ethanol Grain Processors, LLC

Dear [Name of
Subscriber]:

We
hereby notify you that because you subscribed to purchase units of Ethanol
Grain Processors, LLC prior to receiving the enclosed revised prospectus dated                    ,
2006 (amending and superseding the prior prospectus dated June 15, 2006), you
have the right to withdraw your subscription(s) and receive a refund of your
investment, together with any related interest earned.

Before
deciding whether to confirm or withdraw your subscription(s), you should read
the entire revised prospectus, and the documents it refers to, carefully in
order to fully understand our business, the offering and the units we are
offering.  Please indicate below how you
wish to proceed (check either “A” or “B” below):

	
  

  	
  o

  	
  A.

  	
  The undersigned, having
  received the revised prospectus (including the amended Articles of
  Organization and Operating Agreement attached thereto), hereby elects to
  confirm its subscription(s), and to have all prior subscription payments and
  promissory notes continue to be applied in the manner described in the revised
  prospectus.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  B.

  	
  The undersigned hereby elects
  to withdraw its subscription(s). Please return all subscription payments and
  promissory notes to the undersigned at the address set forth in the
  subscription agreement(s) (or provide a substitute address here: _____________________________________________________________________).

  

 

If this form is not completed and received by us by [the date
20 days after the date of this notice], your subscription(s) will automatically
be cancelled.  In
order to register your election, you must return this completed form to us at
the following address: Ethanol Grain Processors, LLC, Attn: Chief Executive
Officer, P.O. Box 95, Obion , TN  38240 or
fax number: (731) 536-1287. If you submit this form by fax, we ask that you
follow up by proceeding to send us the original signed form. If you have any
questions regarding this process, please contact James K. Patterson, our Chief
Executive Officer, at the above address or fax number or by phone at (731)
536-1286.

If you elect to confirm your subscription, your election to
confirm is irrevocable.  If you have not
submitted full payment, you will remain bound to deliver the remaining 90% of
the total purchase price. Failure to do so may result in the forfeiture of your
10% deposit. We reserve the right to reject any subscription, in whole or in
part, for any reason. If you elect to confirm your subscription(s), we will return
your investment only if we reject your subscription(s) or we cannot satisfy the
conditions to breaking escrow.

	
  Individuals:

  	
   

  	
  Entities:

  
	
   

  	
   

  	
   

  
	
  Signature of Investor

  	
   

  	
  Name of Entity

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Authorized Signature

  
	
   

  	
   

  	
   

  
	
  Signature of Joint Investor

  	
   

  	
  Print Name

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Its: 

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  	
  Date:

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