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                                                                    EXHIBIT 10.9

                                    GUARANTY
                             (The Right Start, Inc.)

      This GUARANTY, dated as of January 6, 2002, is made by The Right Start,
Inc., a California corporation ("GUARANTOR"), in favor of the holders from time
to time (collectively, the "SUBORDINATED NOTE HOLDERS") of certain subordinated
notes (the "SUBORDINATED NOTES") issued by Toy Soldier, Inc., a Delaware
corporation ("ISSUER") and wholly-owned subsidiary of Guarantor:

                                    RECITALS

      A. Pursuant to that certain Asset Purchase Agreement dated November 19,
2001 entered into by and among Guarantor, Issuer, Royal Vendex KBB N.V., a
Netherlands corporation, F.A.O. Schwarz, a New York corporation, and Quality
Fulfillment Services, Inc., a Virginia corporation (the "PURCHASE AGREEMENT"),
Issuer issued to the Subordinated Note Holders the Subordinated Notes in partial
payment of the Initial Purchase Price (as defined by the Purchase Agreement).

      B. As a condition to acceptance of the Subordinated Notes by the
Subordinated Note Holders in partial payment of the Initial Purchase Price,
Guarantor is required to enter into this Guaranty and to guaranty the Guarantied
Obligations as hereinafter provided.

                                    AGREEMENT

      NOW, THEREFORE, in order to induce the Subordinated Note Holders to accept
the Subordinated Notes in partial payment of the Initial Purchase Price, and for
other good and valuable consideration, the receipt and adequacy of which hereby
are acknowledged, Guarantor hereby represents, warrants, covenants, agrees and
guaranties as follows:

            1. DEFINITIONS. Guarantor is The Right Start, Inc. Terms defined in
the Subordinated Notes and not otherwise defined in this Guaranty shall have the
meanings given those terms in the Subordinated Notes when used herein and such
definitions are incorporated herein as though set forth in full. In addition, as
used herein, the following terms shall have the meanings respectively set forth
after each:

      "GUARANTIED OBLIGATIONS" means any and all present and future obligations
of Issuer to Subordinated Note Holders arising under or related to the
Subordinated Notes and/or any one or more of them, whether due or to become due,
matured or unmatured, or liquidated or unliquidated, INCLUDING interest that
accrues after the commencement of any bankruptcy or insolvency proceeding by or
against any Subordinated Note Holder, Issuer or any other person.

      "GUARANTY" means this Guaranty, and any extensions, modifications,
renewals, restatements, reaffirmations, supplements or amendments hereof.

            2. SUBORDINATION AGREEMENT. This instrument and the rights and
obligations evidenced hereby are subordinate in the manner and to the extent set
forth in that certain Subordination and Intercreditor Agreement dated as of
January 6, 2002 (as amended, supplemented or otherwise modified from time to
time, the "SUBORDINATION AGREEMENT") among Royal Vendex KBB, N.V., a Netherlands
corporation, F.A.O. Schwarz, a New York corporation, Quality Fulfillment
Services, Inc., a Virginia corporation, Issuer and Wells Fargo Retail Finance,
LLC, to the indebtedness (including interest) owed by Guarantor pursuant to the
loan and security agreement between Guarantor, Issuer and Wells

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Fargo Retail Finance, LLC, dated as of January 23, 2001 (as amended,
supplemented or otherwise modified from time to time, the "WELLS LOAN
AGREEMENT") and to indebtedness refinancing the indebtedness under the Wells
Loan Agreement (the "WELLS INDEBTEDNESS") as contemplated by the Subordination
Agreement, and to any other secured indebtedness of Guarantor for borrowed money
permitted by the Wells Loan Agreement, and each holder of the Subordinated
Notes, by acceptance thereof, has agreed to be bound by the provisions of the
Subordination Agreement. In the event that any provisions of this Guaranty are
deemed to conflict with the Subordination Agreement, the provisions of the
Subordination Agreement shall govern.

            3. GUARANTY OF GUARANTIED OBLIGATIONS. Guarantor hereby irrevocably
and unconditionally guaranties and promises to pay on demand the Guarantied
Obligations and each and every one of them, INCLUDING all amendments,
modifications, supplements, renewals or extensions of any of them, whether such
amendments, modifications, supplements, renewals or extensions are evidenced by
new or additional instruments, documents or agreements or change the rate of
interest on any Guarantied Obligation or the security therefor, or otherwise.

            4. NATURE OF GUARANTY. This Guaranty is irrevocable and continuing
in nature and relates to any Guarantied Obligations now existing or hereafter
arising. This Guaranty is a guaranty of prompt and punctual payment and is not
merely a guaranty of collection.

            5. PREPAYMENT TRIGGERED BY SECURITIES OFFERING. In the event that
Guarantor shall receive net cash proceeds from the closing of a sale of debt or
equity securities of Guarantor or Issuer ("CASH PROCEEDS") in excess of
$5,000,000, not more than 30 calendar days after such receipt, Guarantor shall
contribute to Issuer cash in an amount sufficient to permit Issuer to fulfill
its obligation under Section 3.3 of the Subordinated Notes to prepay an
aggregate principal amount of the Subordinated Notes equal to the Cash Proceeds.
Notwithstanding the foregoing, Guarantor shall not be required to contribute to
Issuer any proceeds from the closing of a sale of debt or equity securities of
Guarantor or Issuer to the extent that the issuance resulting in such Cash
Proceeds was effected solely to fund a merger, consolidation or asset
acquisition and the Cash Proceeds of such issuance are so used within 30 days of
receipt.

            6. RELATIONSHIP TO OTHER AGREEMENTS. Nothing herein shall in any way
modify or limit the effect of terms or conditions set forth in any other
document, instrument or agreement executed by Guarantor in connection with the
Guarantied Obligations, but each and every term and condition hereof shall be in
addition thereto. All provisions contained in the Subordinated Notes are fully
applicable to this Guaranty and are incorporated herein by this reference.

            7. WAIVERS AND CONSENTS. Guarantor acknowledges that the obligations
undertaken herein involve the guaranty of obligations of persons other than
Guarantor and, in full recognition of that fact, consents and agrees that
Subordinated Note Holders, together with Issuer, may, at any time and from time
to time, without notice or demand, and without affecting the enforceability or
continuing effectiveness hereof (a) supplement, modify, amend, extend, renew,
accelerate or otherwise change the time for payment or the terms of the
Guarantied Obligations or any part thereof, INCLUDING any increase or decrease
of the rate of interest thereon; (b) supplement, modify, amend or waive, or
enter into or give any agreement, approval or consent with respect to, the
Guarantied Obligations or any part thereof, or any of the Subordinated Notes to
which Guarantor is not a party or any additional security or guaranties, or any
condition, covenant, default, remedy, right, representation or term thereof or
thereunder; (c) accept new or additional instruments, documents or agreements in
exchange for or relative to any of the Subordinated Notes or the Guarantied
Obligations or any part thereof; (d) accept partial payments on the Guarantied
Obligations; (e) receive and hold additional security or guaranties for the
Guarantied Obligations or any part thereof; (f) release, reconvey, terminate,
waive, abandon, fail to perfect, subordinate, exchange,

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substitute, transfer and/or enforce any security or guaranties, and apply any
security and direct the order or manner of sale thereof as Subordinated Note
Holders in conjunction with Issuer may determine; (g) release any person from
any personal liability with respect to the Guarantied Obligations or any part
thereof; (h) settle, release on terms satisfactory to Subordinated Note Holders
or by operation of applicable laws or otherwise liquidate or enforce any
Guarantied Obligations and any security or guaranty therefor in any manner,
consent to the transfer of any security and bid and purchase at any sale; and/or
(i) consent to the merger, change or any other restructuring or termination of
the corporate or other existence of Issuer and correspondingly restructure the
Guarantied Obligations, and any such merger, change, restructuring or
termination shall not affect the liability of Guarantor or the continuing
effectiveness hereof, or the enforceability hereof with respect to all or any
part of the Guarantied Obligations.

      Upon the occurrence and during the continuance of any Event of Default,
Subordinated Note Holders may enforce this Guaranty independently of any other
remedy or security Subordinated Note Holders at any time may have or hold in
connection with the Guarantied Obligations. Guarantor expressly waives any right
to require the Subordinated Note Holders to marshal assets in favor of Issuer,
or to proceed against Issuer, or upon or against any security or remedy, before
proceeding to enforce this Guaranty. Guarantor agrees that the Subordinated Note
Holders may proceed against Issuer, or upon or against any security or remedy,
in such order as they shall determine in their sole and absolute discretion.
Subordinated Note Holders may file a separate action or actions against Issuer
and/or Guarantor without respect to whether action is brought or prosecuted with
respect to any security or against any other person, or whether any other person
is joined in any such action or actions. Guarantor agrees that Subordinated Note
Holders, Issuer, any other obligors and any affiliates of Issuer or such
obligors may deal with each other in connection with the Guarantied Obligations
or otherwise, or alter any contracts or agreements now or hereafter existing
between any of them, in any manner whatsoever, all without in any way altering
or affecting the security of this Guaranty. Subordinated Note Holders' rights
hereunder shall be reinstated and revived, and the enforceability of this
Guaranty shall continue, with respect to any amount at any time paid on account
of the Guarantied Obligations which thereafter shall be required to be
disgorged, restored or returned by Subordinated Note Holders upon the
bankruptcy, insolvency or reorganization of Issuer or any other person, or
otherwise, all as though such amount had not been paid. The rights of
Subordinated Note Holders created or granted herein and the enforceability of
this Guaranty with respect to Guarantor at all times shall remain effective to
guaranty the full amount of all the Guarantied Obligations even though the
Guarantied Obligations, or any part thereof, or any security or guaranty
therefor, may be or hereafter may become invalid or otherwise unenforceable as
against Issuer or any other guarantor or surety or any other person and whether
or not Issuer or any other person shall have any personal liability with respect
thereto. Guarantor expressly waives any and all defenses now or hereafter
arising or asserted by reason of (a) any disability or other defense of Issuer
or any other obligor with respect to the Guarantied Obligations, (b) the
unenforceability or invalidity of any security or guaranty for the Guarantied
Obligations or the lack of perfection or continuing perfection or failure of
priority of any security for the Guarantied Obligations, (c) the cessation for
any cause whatsoever of the liability of Issuer or any other obligor (other than
by reason of the full payment and performance of all Guarantied Obligations),
(d) any failure of Subordinated Note Holders to marshal assets in favor of
Issuer or any other person, (e) except as otherwise provided in this Guaranty,
any failure of Subordinated Note Holders to give notice of sale or other
disposition of Collateral to Guarantor or any other person or any defect in any
notice that may be given in connection with any sale or disposition of
Collateral, (f) except as otherwise provided in this Guaranty, any failure of
Subordinated Note Holders to comply with applicable laws in connection with the
sale or other disposition of any Collateral or other security for any Guarantied
obligations, including without limitation, any failure of Subordinated Note
Holders to conduct a commercially reasonable sale or other disposition of any
Collateral or other security for any Guarantied Obligation, (g) any act or
omission of Subordinated Note Holders or others that directly or indirectly
results in or aids the discharge or release of Issuer or any other obligor or
the Guarantied Obligations or any security or guaranty therefor by operation of
law or otherwise, (h) any law which provides that the

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obligation of a surety or guarantor must neither be larger in amount nor in
other respects more burdensome than that of the principal or which reduces a
surety's or guarantor's obligation in proportion to the principal obligation,
(i) any failure of Subordinated Note Holders to file or enforce a claim in any
bankruptcy or other proceeding with respect to any person, (j) the election by
Subordinated Note Holders, in any bankruptcy proceeding of any person, of the
application or non-application of Section 1111(b)(2) of the United States
Bankruptcy Code, (k) any extension of credit or the grant of any lien under
Section 364 of the United States Bankruptcy Code, (1) any use of cash collateral
under Section 363 of the United States Bankruptcy Code, (m) any agreement or
stipulation with respect to the provision of adequate protection in any
bankruptcy proceeding of any person, (n) the avoidance of any lien in favor of
Subordinated Note Holders for any reason, (o) any bankruptcy, insolvency,
reorganization, arrangement, readjustment of debt, liquidation or dissolution
proceeding commenced by or against any person, INCLUDING any discharge of, or
bar or stay against collecting, all or any of the Guarantied Obligations (or any
interest thereon) in or as a result of any such proceeding, (p) to the extent
permitted, the benefits of any form of one-action rule under any applicable law,
or (q) any action taken by Subordinated Note Holders that is authorized by this
Section or any other provision of the Subordinated Notes. Guarantor expressly
waives demands for payment or performance, notices of nonpayment or
nonperformance, protests, notices of protest, notices of dishonor and all other
notices or demands of any kind or nature whatsoever with respect to the
Guarantied Obligations, and all notices of acceptance of this Guaranty or of the
existence, creation or incurrence of new or additional Guarantied Obligations.

            8. UNDERSTANDINGS WITH RESPECT TO WAIVERS AND CONSENTS. Guarantor
warrants and agrees that each of the waivers and consents set forth herein are
made with full knowledge of their significance and consequences, with the
understanding that events giving rise to any defense or right waived may
diminish, destroy or otherwise adversely affect rights which Guarantor otherwise
may have against Issuer, Subordinated Note Holders or others, or against any
collateral. Guarantor acknowledges that it has either consulted with legal
counsel regarding the effect of this Guaranty and the waivers and consents set
forth herein, or has made an informed decision not to do so. If this Guaranty or
any of the waivers or consents herein are determined to be unenforceable under
or in violation of applicable law, this Guaranty and such waivers and consents
shall be effective to the maximum extent permitted by law.

            9. CORPORATE EXISTENCE. Except as set forth in this SECTION 9,
Guarantor will do or cause to be done all things necessary to preserve and keep
in full force and effect its corporate existence in accordance with its
organizational documents, rights (charter and statutory), licenses and
franchises; PROVIDED HOWEVER, that Guarantor shall not be required to preserve
any such right, license or franchise, if the Board of Directors of Guarantor
shall determine in good faith, which determination shall be evidenced by a board
resolution, that the preservation thereof is no longer desirable in the conduct
of the business of Guarantor and that the loss thereof is not adverse in any
material respect to Subordinated Note Holders. Notwithstanding the other
provisions of this Guaranty, Guarantor shall be permitted to merge with or into
any other entity if either (a) Guarantor shall be the continuing corporation or
(b) the merger is with and into a wholly-owned subsidiary of Guarantor and the
surviving corporation of such merger expressly assumes the performance of the
obligations of Guarantor under this Guaranty.

            10. INVESTMENT COMPANY ACT. Guarantor shall not become an investment
company subject to registration under the Investment Company Act of 1940, as
amended.

            11. SEC REPORTS, FINANCIAL REPORTS. If the following information and
documents are not available through the internet, Guarantor shall provide
Subordinated Note Holders within 15 days after it files them with the United
States Securities and Exchange Commission (the "SEC") copies of quarterly and
annual reports and the information, documents and other reports (or copies of
such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) that Guarantor files with the SEC pursuant to Sections 13(a) and
13(c) or 15(d) of the Securities Exchange Act of 1934, as amended

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(the "EXCHANGE ACT"). Guarantor will continue to file with the SEC and to
provide to the Subordinated Note Holders, on the same timely basis such reports,
information and other documents as Guarantor would be required to file with the
SEC as if Guarantor were subject to the requirements of such Sections 13(a) and
13(d) or 15(d) of the Exchange Act, notwithstanding that Guarantor may no longer
be subject to Section 13(a) and 13(d) or 15(d) of the Exchange Act and that
Guarantor would be entitled not to file such reports, information and other
documents with the SEC.

            12. LIMITATIONS ON LIABILITY. Notwithstanding anything to the
contrary elsewhere contained herein or in the Subordinated Notes, the aggregate
liability of Guarantor hereunder for payment of the Guarantied Obligations shall
not exceed an amount which, in the aggregate, is $1.00 less than that amount
which if so paid or performed would constitute or result in a "fraudulent
transfer," "fraudulent conveyance" or terms of similar import, under applicable
state or federal law, including without limitation, Section 548 of the United
States Bankruptcy Code.

            13. THIS GUARANTY SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

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      IN WITNESS WHEREOF, Guarantor has executed this Guaranty by its duly
authorized officer as of the date first written above.

                                    "Guarantor"

                                    THE RIGHT START, INC.,
                                    a California corporation

                                    Address for Guarantor:

                                    26610 Agoura Road., Suite 250
                                    Calabasas, California 91302
                                    Attn.: Legal
                                           jgroner@rightstart.com
                                    Telephone:  (818) 707-7100
                                    Fax:        (818) 707-7132

                                    By:____________________________

                                    Title:___________________________Prepared by MERRILL CORPORATION

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Exhibit 10.6  

 
  DISTRIBUTION AGREEMENT    
  

        This Distribution Agreement ("Agreement") is hereby made and entered into as of the 1st day of November, 1999, by and between GameTech
International, Inc. ("GameTech"), a Delaware corporation, with principal offices located at 2209 West 1st Street, Suite 113, Tempe, Arizona 85281 and  Trend Gaming Systems, L.L.C. ("Distributor"), with principal offices located at 11006 Metric Blvd. Austin, Texas
78758. GameTech and Distributor are sometimes referred to individually as a "Party" and collectively as the "Parties". 

        WHEREAS,
GameTech desires Distributor to act as a distributor of its products and services (as hereinafter defined) within the Territory (as hereinafter defined) and Distributor desires
to be a distributor of GameTech's products and services within the Territory, the Parties do hereby enter into this Agreement for and in consideration of the mutual covenants herein set forth, the
Parties agree as follows: 

        1.    Grant of Rights.    

        1.1.    Grant of Master Distributorship.    Subject to the terms and conditions of this Agreement, GameTech hereby
appoints Distributor as its master distributor of all current electronic video bingo products (including any product(s) similar to any electronic bingo game products) owned or controlled by GameTech
(the "Products") within the geographic region set forth on Exhibit A (the "Territory"). Additional distributors of the Products in non-Trend
accounts shall be allowed to distribute the Products subject to approval by Trend, which approval shall not be unreasonably withheld. Approval of additional distributors shall be based upon, but not
limited to, the following factors: 

        A.    The distributor's ability to be licensed for gaming purposes.  

        B.    Quality and reputation of the distributor in Texas  

         C.    Commitment to the GameTech product line. 

Any additional approved distributors shall be attached and listed as an addendum to Exhibit D to this Agreement upon the date of their approval.

        1.2.    Additional Products.    GameTech hereby agrees to give Distributor the first right to negotiate for the
exclusive distribution rights within the Territory to any additional and/or future GameTech products not specified in Section 1.1 during the term of this Agreement on terms and conditions no
less favorable than those accepted by other distributors. 

        2.    Duties and Responsibilities of GameTech.    

        2.1.    Training.    GameTech, on a reasonable basis consistent with prior practice, will train Distributor in the
sale and operation of the Products. 

        2.2.    Installation of Units.    GameTech will provide Distributor with the installation specifications, which shall
be required to be provided by the customer. (The customer(s) must provide, in particular, a dedicated phone line and electricity.) GameTech will provide all equipment to operate the Products and will
install the Products at the customer's site. GameTech shall endeavor to accomplish all installations on a timely and commercially reasonable basis. 

        2.3.    On Site Training and Product Support.     GameTech, on a reasonable basis consistent with prior practice, will
provide on-site training of customers, managers, floor clerks, cashiers and callers. GameTech will provide commercially reasonable support for customers and will maintain replacement parts at
locations sufficient to respond adequately to customer needs. GameTech, on a reasonable basis consistent with prior practice, will provide on-site personnel that may be necessary or required for daily
support functions. 

 

        2.4.    MIS Support.    GameTech will provide back office management support consistent with prior practice. 

        3.    Duties and Responsibilities of Distributor.    

        3.1.    Duty to Distribute and Promote.    Distributor will represent GameTech's Products to prospective and existing
customers within the Territory. Distributor shall promote the installation of units in the Territory to the best of Distributor's ability. Distributor will transmit GameTech Product information and
promotional materials to the customer(s), as reasonably necessary. Distributor shall work with the customers to assure their satisfaction with the Product and shall report to GameTech regarding
customer evaluations of the units. Distributor shall also take all available commercially reasonable measures (within the requirements of this agreement) to retain any and all Product accounts Trend
currently has in existence and accounts that Trend gains during the Term. 

        3.2.    Sales Procedures.    Upon receipt of a customer order, Distributor will contact GameTech to schedule a Product
shipment date. Distributor will assure that a dedicated phone line and electricity is in place. 

        3.3.    Conflict of Interest.    The Parties acknowledge that any efforts by Distributor to sell competing products
would constitute a conflict of interest with respect to Distributor's obligations to market the Products. During the Term, as well as during the period post termination in which phase out
consideration is being paid Distributor, unless termination by GameTech without cause occurs, Distributor agrees that it will not distribute, market, promote, manufacture, sell or lease any products
that are competitive with GameTech's Products. Should Distributor materially breach the Agreement, this Section 3.3 will survive and remain in effect subsequent to termination of the Agreement
for a twelve (12) month period. Should GameTech exercise it's right to terminate this Agreement upon six-(6) month's notice (pursuant to 8.4(a) herein), this Section 3.3 shall
survive during the period post termination in which phase out consideration is being paid Distributor. A product shall be deemed to be competitive if it is an electronic bingo game of any sort or is
similar to any electronic bingo game product. 

        3.4.    Representations.    Distributor shall limit its claims and representations concerning the Products to those
made by GameTech in its published literature, and not make any claims or representations in excess of such claims of GameTech. 

        3.5.    Support Staff.    Distributor will maintain adequate staff to perform all functions under this Agreement in a
timely fashion including, but not limited to: the functions specified in Sections 3.1 and 3.2 contained herein, and the additional functions listed in the attached Exhibit "B". 

        4.    Compensation.    

        4.1.    Commission Rate.    Distributor shall earn commissions at the following rates, as a percentage of gross
revenue collected from the installations of the Products within the Territory during the Term: 

Sixteen
percent (16%) on Distributor's account locations installed as of November 1, 1999. Twenty-two percent (22%) on new, previously non-Distributor account locations installed subsequent to
November 1, 1999. Out of said commissions, Distributor is responsible for payments to all Distributor and non Distributor personnel within the Territory who are required to perform all
Distributor functions of this Agreement (including, but not limited to, monies due third party distributors, GameTech sales commissions, and/or any other third parties assisting Distributor in the
Territory). 

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        4.2.    Minimum Commissions.    All minimum commission payments will be scheduled effective November 1, 1999
and based on GameTech's fiscal year. Distributor shall receive an average annualized guaranteed floor commission of $l00,000.00 per month during the first thirty-six (36) months of this Agreement. In
any given quarter should the commissions earned, as calculated in 4.1 above, not exceed the guaranteed floor quarterly commission of 3 x $100.000.00, then Distributor shall earn and receive the above
stated guaranteed floor monthly commission based upon the following payment plan: Should average commissions earned be less than 3 x $100,000.00 then the shortfall, if any, shall be paid no later than
the fifteenth (15th) day of the month subsequent to the end of each quarterly period. On an annualized basis, should Distributor receive at least 12 x $100,000, yet during any quarter
during this period Distributor receives shortfall payments, Distributor shall remit the difference to Gametech no later than the fifteenth (15th) day subsequent to the end of the subject
annualized period. All minimum commission payments shall be inapplicable during any period in which act(s) of God cause Distributor's commissions to fall by twenty percent (20%) or more. 

        4.3.    Commencement Payment.    In consideration for Distributor's agreement to be bound by the terms and conditions
contained herein, including but not limited to Sections 3.3 and 6.8, as well as for waiver (upon effective date of this Agreement) of the prior agreements between the Parties and release of the
commissions due Distributor for overrides, GameTech agrees to pay Distributor, upon the effective date of this Agreement, the lump sum of $1,275,000.00. 

        4.4.    Termination compensation.    Upon termination of the Agreement GameTech shall pay to Distributor termination
compensation over a thirty-six (36) month period under the following schedule: 

Year
one (1) post termination: Distributor receives 80% of revenues.** 

Year
two (2) post termination: Distributor receives 70% of revenues.** 

Year
three (3) post termination: Distributor receives 60% of revenues.** 

**Defined
as monies Distributor would have earned under Section 4.1 had the Agreement remained in effect during the above referenced post termination periods. All post-termination compensation
is expressly subject to the terms and conditions stated in Section 8.4 herein. 

        4.5.    Hall/Account Protections.    GameTech agrees that halls/accounts with installed GameTech Products are
protected accounts. (i.e. any approved distributor, including Trend, that maintains a hall/account with installed Products in the State of Texas shall have the commission rights to said
hall/account.)* Trend agrees to refrain from obtaining/disturbing any non-Trend hall/account that has installed Products and is an approved GameTech distributor.* 

*To
retain rights to a hall/account a GameTech distributor must be actively attempting to retain Product installation levels. (i.e. should a hall/account de-install a material number of the Products,
it is at GameTech's discretion whether or not the subject hall/account remains protected.) 

        5.    Customer Pricing, Accounting and Payments.    

        Distributor
will handle all customer collections. Distributor will remit to GameTech for all revenue due less commission due Distributor on a weekly basis along with a cash receipt
report. Distributor will take all commercially reasonable action to ensure that payments to GameTech are as current as possible. GameTech shall be entitled to audit the books of Distributor on a
reasonable basis and upon reasonable notice to Distributor. Any such audit shall be limited to only such information as shall be specifically required to verify the gross receipts received by
Distributor, from customers governed by this Agreement. During any period of post termination payment: (1) GameTech will take all commercially reasonable action to ensure that payments to 

3

 

Trend are as current as possible; (2) Trend shall be entitled to audit the books of GameTech on a reasonable basis and upon reasonable notice to GameTech; and, (3) Any such audit shall
be limited to only such information as shall be specifically required to verify the monies entitled to and collected by GameTech. 

        6.    Proprietary Rights and Confidentiality.    

        6.1.    Proprietary Rights.    Distributor agrees that GameTech owns all rights, titles and interests in the Products
and in all of GameTech's patents, trade names, inventions, copyrights and trade secrets relating to the design, manufacture and operation or service of the Products. The use by Distributor of
any of these proprietary rights is authorized only for the purposes herein set forth, and upon termination of this Agreement any such authorization shall cease. 

        6.2.    No Right to Manufacture or Copy.    The Products being installed and/or sold by GameTech are subject, in every
case, to the condition that such installation and/or sale does not convey any license, expressly or by implication, to manufacture, duplicate or otherwise copy or reproduce the Products. Distributor
shall take appropriate steps with the customers, as GameTech may request, to inform them of and assure compliance with these restrictions. Distributor acknowledges that any violation of these
provisions is a material breach of this Agreement that shall entitle GameTech to obtain equitable relief to terminate such unauthorized activities, including but not limited to, preliminary and
permanent injunctive relief, as well as monetary damages. 

        6.3.    Confidentiality.    The Parties acknowledge that by reason of their relationship to each other hereunder each
will have access to certain information and materials concerning the other's business, plans, customers, technology, and/or products that is confidential and of substantial value to that Party, which
value would be impaired if such information were disclosed to third parties. Each Party agrees that it will not use in any way for its own account or the account of any third party, nor disclose to
any third party, any such confidential information revealed to it by the other Party and shall take every reasonable precaution to protect the confidentiality of such information. Upon request by
either Party, the other Party shall advise whether or not it considers any particular information or materials to be confidential. Distributor shall not publish any technical description of the
products beyond the description published by GameTech. Upon termination of this Agreement, there shall be no use or disclosure by a Party of any confidential information of the other Party, and
neither Party shall manufacture or have manufactured any devices, components or assemblies utilizing any of the other Party's confidential information. 

        7.    Trademarks and Trade Names.    

        During
the Term of this Agreement, Distributor shall have the right to indicate to the public that it is an authorized distributor of GameTech Products and to advertise the Products to
potential customers under the trademarks, marks, and trade names that GameTech may adopt from time to time ("GameTech's Trademarks"). Distributor shall not alter or remove any of GameTech's Trademarks
applied to the Products at the factory. Nothing herein shall grant to Distributor any right, title or interest in GameTech's Trademarks. At no time during or after the term of this Agreement shall
Distributor challenge or assist others to challenge GameTech's Trademarks or the registration thereof or attempt to register any trademarks, marks or trade names confusingly similar to those of
GameTech. 

        8.    General Provisions.    

        8.1.    Assignment.    A mutually agreed consideration for GameTech's entering into this Agreement is the reputation,
business standing, and goodwill already honored and enjoyed by Distributor under its present majority ownership, and, accordingly, Distributor agrees that its rights and obligations under
this Agreement may not be transferred or assigned directly or indirectly to a non-affiliated party and/or an affiliated party with a significantly different majority ownership other 

4

 

than Distributor's current majority ownership without the prior written consent of GameTech, which consent will not be unreasonably withheld. Subject to the foregoing sentence, this Agreement shall
be binding upon and inure to the benefit of the parties hereto, their successors and assigns. 

        8.2.    Notices.    Any notice or other communication shall be sufficiently given if sent by registered or certified
mail, or by facsimile transmittal if receipt is electronically confirmed or by courier, postage prepaid (with confirmation of receipt), or hand delivery (with confirmation of receipt) to the
respective address of the Parties provided above, or such other addresses as shall be noticed during the term of this Agreement. 

        8.3.    Relationship of the Parties.    The relationship of GameTech and Distributor established by this Agreement is
that of independent contractors, and nothing contained in this Agreement shall be construed to (i) give either party the power to direct and control the day-to-day activities of the other,
(ii) constitute the parties as partners, joint venturers, co-owners or otherwise as participants in a joint or common undertaking, or (iii) allow Distributor to create or assume any
obligation on behalf of GameTech for any purpose whatsoever except as shall be contemplated by this Agreement. All financial obligations associated with Distributor's business are the sole
responsibility of Distributor. Distributor shall be solely responsible for, and shall indemnify and hold GameTech free and harmless from, any and all claims, damages or lawsuits (including GameTech's
reasonable attorneys' fees) arising out of the acts of Distributor, its employees or its agents. GameTech shall be solely responsible for, and shall indemnify and hold Distributor free and harmless
from, any and all claims, damages or lawsuits (including Distributor's reasonable attorneys' fees) arising out of the acts of GameTech's employees or its agents. 

        8.4.    Term and Termination.    

        (a)    Term.    This Agreement shall continue in force for a ten- (10) year term (the "Term") commencing on the
date first written above unless terminated earlier under the provisions of this Agreement. As of May 1, 2004, either Party may send six- (6) month written notice of termination at any
time during the remaining Term without penalty. Upon any said written six (6) month notice, both Parties shall continue to be bound by the terms and conditions of the Agreement until said six
(6) months have elapsed, as well as bound any post termination conditions contained herein. 

        (b)    Termination for Cause.    If either Party deliberately or willfully defaults in the performance of any material
provision of this Agreement, the non-defaulting party may give written notice to the defaulting party that the defaulting party has thirty (30) days to cure said default. If the non-defaulting Party
gives such notice, and the default is not cured during the thirty (30) day period, then in the case of a Distributor default this Agreement shall terminate immediately upon notice by GameTech and all
GameTech obligations (including but not limited to Section 4.4) shall terminate. All monies due
GameTech in the event of Distributor's material breach shall be paid GameTech within thirty (30) days. If the non-defaulting Party gives such notice, and the default is not cured during the thirty
(30) day period, then in the case of a GameTech default, the remaining floor commissions (if still applicable) due Distributor under the Agreement shall continue until the end of the thirty-six (36)
month floor commission period and thereafter include the minimum termination compensation as stated in Section 4.4 and all other Distributor obligations shall terminate. 

        (c)    Termination for Insolvency.    This Agreement shall terminate automatically, without notice, (i) upon
the institution by or against (if meritorious) Distributor of insolvency, receivership or bankruptcy proceedings or any other proceedings for the settlement of Distributor's debts; (ii) upon
Distributor's making an assignment for the benefit of creditors, or (iii) upon Distributor's dissolution. 

5

 

        (d)    Return of Materials.    All trademarks, marks, trade names, patents, copyrights, designs, drawings, formulas or
other data, photographs, samples, literature, and sales aids of every kind shall remain the property of GameTech. Within thirty (30) days after the termination of this Agreement, Distributor shall
prepare all such items in its possession for shipment, as GameTech may direct, at GameTech's expense. Distributor shall not make or retain any copies of any confidential items or information, which
may have been entrusted to it. Effective upon the termination of this Agreement, Distributor shall cease to use all trademarks and trade names of GameTech. 

        (e)    Survival of Certain Terms.    The provisions of Sections 6, 7 and 8 shall survive the expiration or
termination of this Agreement for any reason. Except as otherwise provided in this Agreement, all other rights and obligations of the Parties shall cease upon termination of this Agreement. In the
event that an acquisition of GameTech should occur, the provisions of this Agreement shall remain in effect. 

        (f)    Termination due to Legislative/Regulatory Action.    Should Texas law/regulations be amended to prohibit
electronic video bingo during the Term, all obligations contained in this Agreement shall terminate. 

        8.5.    Waiver; Termination.    A waiver by either party of any of the terms or conditions of this Agreement in any
instance shall not be construed to be a waiver of such term or condition in the future, or breach thereof; all remedies, rights, undertakings, obligations and agreements contained in this Agreement
shall be cumulative, and none of them shall be in limitation of any other remedy, right, undertaking, obligation or agreement of either Party. 

        8.6.    Entire Agreement.    This Agreement contains the entire understanding of the Parties hereto relating to the
subject matter herein contained, and this Agreement cannot be changed, rescinded or terminated except in writing signed by both Parties. This Agreement expressly supercedes and replaces in all
respects any prior agreement(s), whether written or oral, existing between the parties regarding the
subject Territory. Each party by executing this Agreement hereby waives any rights to legal remedy(s) it may have had up to the effective date of this Agreement regarding the other Party's action(s)
or inaction(s) within the Territory arising under any prior agreement whether written or oral, 

        8.7.    Headings.    The subject headings of the sections and subsections of this Agreement are for reference purposes
only and shall not affect the construction or interpretation of any of its provisions. 

        8.8.    Severability.    If any provision of this Agreement is held invalid or unenforceable by any court of final
jurisdiction, it is the intent of the parties that all other provisions of this Agreement be construed to remain fully valid, enforceable and binding on the parties and construed as if such
unenforceable provision had never been contained herein. 

        8.9.    Attorneys' Fees.    The prevailing party in any legal action brought by one party against the other and
arising out of this Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses, including court costs and reasonable attorneys' fees. 

        8.10    Applicable Law and Venue.    This Agreement shall be construed according to the internal laws, and not the law
of conflicts, of the State of Arizona. In the event of any disputes, the Parties agree to non-binding arbitration in accordance with the rules of the American Arbitration Association ("AAA"). The
non-binding arbitration shall be decided by a single arbitrator selected mutually by the Parties, or failing mutual agreement within ten (10) days of demand, as selected by AAA upon application
of either Party. Unless otherwise agreed by GameTech and Distributor, the arbitration shall take place in Maricopa County, Arizona. Failing 

6

 

successful settlement via arbitration, the Parties agree that any legal action initiated will be adjudicated in Maricopa County, Arizona. 

        The
Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 

        IN
WITNESS WHEROF, the Parties have duly executed this Agreement as of this date first above written. 

	"GameTech"	 	"Distributor"
	

GameTech International, Inc.	
 	

Trend Gaming Systems, LLC
	

Signed:	
 	

/s/  RICHARD T. FEDOR      
 Authorized Officer	
 	

Signed:	
 	

/s/  STEVEN W. HIERONYMUS      
 Authorized Officer
	

Printed Name:	
 	

Richard T. Fedor
	
 	

Printed Name:	
 	

Steven W. Hieronymus

	

Title:	
 	

Chairman & CEO	
 	

Title:	
 	

Managing Partner

	

Signed:	
 	

/s/  ANDREJS K. BUNKSE      
 Authorized Officer	
 	

 	
 	

 
	

Printed Name:	
 	

Andrejs K. Bunkse
	
 	

 	
 	

 
	

Title:	
 	

General Counsel—Corporate Secretary	
 	

 	
 	

 

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DISTRIBUTION AGREEMENT

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