Document:

Exhibit 10.24

 

 

November 11, 2003

 

 

Nigel Kirkpatrick

Industrial Research Limited 

P O Box 2225 

Parnell,  Auckland,
New Zealand 

Ph:   
+64-9-373 8602 

Fax:  +64-9-302 8114

 

RE:          Manufacturing Agreement - Letter of Intent

 

Dear Nigel:

 

Please review the following
Letter of Intent and if agreeable, sign and return the letter to my attention
at 6830 S. Spencer Street, Las Vegas, NV 89119.

 

VendingDataTM and Industrial
Research have a contract, which states that Industrial Research Limited will
manufacture and supply 600 Deck-Checker® units to Vending Data.

 

The parties hereby agree to
the following objectives:

 

1.               Manufacture
Deck-Checker® units in China by VendingDataTM, with support from Industrial
Research Limited;

2.               Sourcing of
parts from existing Industrial Research Limited suppliers in New Zealand, as
appropriate;

3.               Ongoing
development support from Industrial Research Limited for Deck-Checker®, and
other products as agreed; and

4.               And, an ongoing
royalty fee will be paid by VendingDataTM to Industrial Research Limited.

 

The specific agreements
shall be as follows:

 

AGREEMENT

 

•                  Industrial
Research Limited will supply 100 days consulting time and 10 China trips
between December 1 2003 and June 30 2004;

 

•                  Industrial
Research Limited will ensure that VendingDataTM personnel are able to make
contact with New Zealand suppliers for parts of existing Deck-Checker®
manufacture;

 

•                  VendingDataTM
will pay Industrial Research Limited a royalty fee of $250 USD per unit
manufactured by Vending Data;

 

•                  Prepayment
will be guaranteed by VendingDataTM and invoiced by Industrial Research Limited,
until June 30, 2004 on the following basis:

 

Invoice by INDUSTRIAL
RESEARCH LIMITED ( 1st month )

Payment by Vending Data (
USD 15th month )

 

	
  January

  	
   

  	
  250 units

  	
   

  	
  $62,500

  	
   

  
	
  February

  	
   

  	
  250 units

  	
   

  	
  $62,500

  	
   

  
	
  March

  	
   

  	
  250 units

  	
   

  	
  $62,500

  	
   

  
	
  April

  	
   

  	
  250 units

  	
   

  	
  $62,500

  	
   

  
	
  May

  	
   

  	
  250 units

  	
   

  	
  $62,500

  	
   

  
	
  June

  	
   

  	
  454 units

  	
   

  	
  $113,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL 1704 units

  	
   

  	
  $426,000

  	
   

  	
   

  	
   

  

 

 

6830 So. Spencer Street, Las Vegas, NV 89119

Phone:  702-733-7195 /  Fax: 
702-733-7197

 

 

 

ONGOING AGREEMENT

 

On an annual basis starting
July 1, 2004:

 

•                  Industrial
Research Limited will provide VendingDataTM with 100 days consultancy and 10
trips to China;

 

•                  VendingDataTM
will pay a royalty fee of $250 USD per unit manufactured in China to Industrial
Research Limited.

 

If the total royalty fee
for the year does not cover the Industrial Research Limited costs, then a
royalty prepayment will be guaranteed by VendingDataTM to cover the costs.

 

Each project must be
previously agreed upon by Industrial Research Limited and VendingDataTM. If
extra projects are required during the year that exceed the consultancy time
provided by Industrial Research Limited, then the payment terms will need to be
agreed upon as a separate contract.

 

OTHER PRODUCTS

 

This model should be used
for future projects as appropriate, e.g. Poker One.

 

ACTIONS REQUIRED

 

1.               The parties
shall use their reasonable best efforts to expand this Letter of Intent into a
more detailed contract, where the parties understand and agree that the
contract may more particularly and/or specifically delineate and/or describe
the various terms and provisions thereto than as such terms and provisions are
set out in this Letter of Intent;

 

2.               The parties
shall arrange a meeting in China between key VendingDataTM and Industrial
Research Limited personnel to organize the transition of manufacturing to
China;

 

3.               The parties
shall agree on timings for Industrial Research Limited support until June 30,
2004;

 

4.               Industrial
Research Limited shall prepare a project proposal to develop the “two sided
recognition” for the Deck-Checker®.

 

This Letter of
Intent is binding and both parties will retain complete discretion regarding
entering any future contracts or amendments to the existing contract. The
parties shall take all actions and execute and deliver all documents, whether
or not specifically described herein, that may be required to carry out the
purposes and intent of this Letter of Intent.

 

                IN WITNESS WHEREOF, the undersigned have hereunto
agreed to the terms and conditions set forth in this binding letter of intent.

 

	
  VendingDataTM Corporation

  	
   

  	
  Industrial Research
  Limited

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY:

  	
   

  	
  /s/ STEVEN J. BLAD

  	
   

  	
  BY:

  	
   

  	
  /s/ NIGEL KIRKPATRICK

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
   

  	
   

  	
   

  	
  NAME:

  	
   

  	
   

  
	
   

  	
   

  	
  Steven J. Blad

  	
   

  	
   

  	
   

  	
  Nigel Kirkpatrick

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
   

  	
   

  	
  TITLE:

  	
   

  	
   

  
	
   

  	
   

  	
  President/CEO

  	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
   

  	
  DATE:Exhibit
10.27

 

AMENDED ESCROW AGREEMENT

This Amended Escrow
Agreement (this “Escrow Agreement”), dated the 4th day of December,
2003, by and between VendingData Corporation, a Nevada corporation (“Customer”)
and Wells Fargo Bank, National Association (“Escrow Agent”) contains the
following terms:

1.             Receipt of Escrow Funds.  Escrow Agent
shall receive funds via bank draft, cashier’s check or wire transfer (the
“Escrow Funds”) from time to time from Philadelphia Brokerage Corporation
(“PBC”) on behalf of Customer or directly from subscribers for Customer’s
shares, in each instance in connection with that certain offering of up to
5,000,000 shares of Customer’s common stock as set forth in that certain
Registration Statement on Form SB-2, as filed with the Securities and
Exchange Commission on September 25, 2003, as the same may be amended from
time to time (SEC File No. 333-109115).

2.             Investments.  The Escrow
Funds shall be deposited by the Escrow Agent in an interest-bearing account
according to the Customer’s direction as set forth in the “Agency and Custody
Account Direction For Cash Balances” form.

3.             Interest.  The Escrow
Funds shall be placed in an interest-bearing account.

4.             Disbursement of Funds.  Escrow Agent
shall transfer the Escrow Funds or portions thereof to the Customer upon
receipt of written instructions of Customer. 
If the minimum offering is not achieved within 90 days of the date of
the prospectus, all subscription funds will be returned on the next business
day or as soon as possible after the offering is terminated to investors with
interest, but without deduction of fees. 
Escrow Agent is not responsible and does not warrant, convey or
guarantee in any form or manner that the disbursed Escrow Funds will be used by
Customer for the purposes herein stated or stated elsewhere.

5.             Duty of the Escrow Agent.  The sole
duty of Escrow Agent is to receive the Escrow Funds and hold the same pending
disbursement pursuant to Section 4 of this Escrow Agreement. Escrow Agent
is not responsible for ensuring that Customer is using the Escrow Funds for any
stated or express purposes. Escrow Agent is not responsible for accounting or
maintaining any records other than to document the wires and funds received and
Escrow Funds disbursed.

6.             Documents.  The Escrow
Agent may conclusively rely upon and shall be protected in acting upon any
statement, certificate, notice, request, consent, order or other document
believed by it to be genuine and to have been signed or presented by the proper
party or parties. The Escrow Agent shall have no duty or liability to verify
any such statement, certificate, notice, request, consent, or order or other
document and its sole responsibility shall be to act only as expressly set
forth in this Escrow Agreement. The Escrow Agent shall be under no obligation
to institute or defend any action, suit or proceeding in connection with this
Escrow Agreement unless first indemnified to its satisfaction by the Customer.

7.             Fees.  Escrow Agent is entitled to
compensation in accordance with “Schedule A” attached hereto and incorporated
herein by reference and shall be payable by Customer. Escrow 

 

Agent may in its
discretion deduct said fees from the funds to be disbursed to Customer after
receipt of joint instructions to disburse pursuant to Section 4 hereof, if
said compensation is not paid by Customer.

8.             Tax Related Terms.

(a)           Tax Reporting.  Customer
agrees that, for tax reporting purposes, all interest or other taxable income
earned from the investment of the Escrow Funds in any tax year shall be taxable
to the subscriber.

(b)           Certification of Tax Identification Number. 
Customer agrees to provide the Escrow Agent with certified tax
identification numbers by furnishing appropriate forms W-9 or W-8 and other
forms and documents that the Escrow Agent may reasonably request.  Customer hereto understand that if such tax
reporting documentation is not so certified to the Escrow Agent, the Escrow
Agent may be required by the Internal Revenue Code of 1986, as amended, to
withhold a portion of any interest or other income earned on the investment of
monies or other property held by the Escrow Agent pursuant to this Escrow
Agreement.

(c)           Taxes.  Customer agree to indemnify
and hold the Escrow Agent harmless from and against any taxes, additions for
late payment, interest, penalties and other expenses that may be assessed
against the Escrow Agent on or with respect to any payment or other activities
under this Escrow Agreement.

9.             Indemnification of Escrow Agent. 
The Customer hereby indemnifies and holds harmless the Escrow Agent from
and against, any and all loss, liability, cost, damage and expense, including,
without limitation, reasonable counsel fees, which the Escrow Agent may suffer
or incur by reason of any action, claim or proceeding brought against the
Escrow Agent arising out of or relating in any way to this Escrow Agreement or
any transaction to which this Escrow Agreement relates unless such action,
claim or proceeding is the result of the willful misconduct of the Escrow
Agent. The Escrow Agent may consult counsel in respect of any question arising
under the Escrow Agreement and the Escrow Agent shall not be liable for any
acting taken or omitted in good faith upon advice of such counsel.

10.           Notices.  All notices,
requests, demands, and other communications under this Escrow Agreement shall
be in writing and shall be deemed to have been duly given (a) on the date of
service if served personally on the party to whom notice is to be given, (b) on
the day of transmission if sent by facsimile transmission to the facsimile
number given below, and telephonic confirmation of receipt is obtained promptly
after completion of transmission, (c) on the day after delivery to Federal
Express or similar overnight courier or the Express Mail service maintained by
the United States Postal Service, or (d) on the fifth day after mailing, if
mailed to the party to whom notice is to be given, by first class mail,
registered or certified, postage prepaid, and properly addressed, return
receipt requested, to the party as follows: 

 

2

 

	
  If to Customer:

  	
  VendingData
  Corporation 

  6830
  South Spencer Street 

  Las
  Vegas, Nevada  89119 

  Attn:           John R. Spina 

                     Chief Financial Officer 

  Phone:        (702) 733-7195 

  Fax:           
  (702) 733-7197

  
	
   

  	
   

  
	
  If to Philadelphia Brokerage Corporation:

  	
  Philadelphia
  Brokerage Corporation

  992
  Old Eagle School Road

  Suite
  915 

  Wayne,
  PA  19087 

  Attn:            Bernadette Pucillo 

                      Operations
  Manager 

  Phone:         (610) 975-9990 

  Fax:             (610) 975-9993

  
	
   

  	
   

  
	
  If to Escrow Agent:

  	
  Wells Fargo Bank, N.A. 

  Attn:  Michael G. Slade 

  MAC N9303-110 

  Sixth Street and
  Marquette Avenue 

  Minneapolis, MN  55479 

  Phone:  (612) 667-0266 

  Fax:      (612) 667-2160

  
	
   

  	
   

  
	
  Wires to Escrow Agent
  should be directed to the following:

  	
  Wells Fargo Bank,
  National Association 

  ABA #121000248 

  Trust Clearing Account
  # 0001038377 

  For Credit to: 15124400
  

  VendingData Corporation
  Escrow Account

  

 

Any party may change its
address for purposes of this paragraph by giving the other party written notice
of the new address in the manner set forth above.

11.           Successors and Assigns.  Except as
otherwise provided in this Escrow Agreement, no party hereto shall assign this
Escrow Agreement or any rights or obligations hereunder without the prior
written consent to the other parties hereto and any such attempted assignment
without such prior written consent shall be void and of no force and effect.  This Escrow Agreement shall inure to the
benefit of and shall be binding upon the successors and permitted assigns of
the parties hereto.

12.           Governing Law; Jurisdiction.  This Escrow
Agreement shall be construed, performed, and enforced in accordance with, and
governed by, the internal laws of the State of Minnesota, without giving effect
to the principles of conflicts of laws thereof.  Each party hereby 

 

3

 

consents to the
personal jurisdiction and venue of any United States District Court for the
District of Minnesota located in Hennepin County, Minnesota.

13.           Severability.  In the event
that any part of this Escrow Agreement is declared by any court or other
judicial or administrative body to be null, void, or unenforceable, said provision
shall survive to the extent it is not so declared, and all of the other
provisions of this Escrow Agreement shall remain in full force and effect.

14.           Amendments; Waivers.  This Escrow
Agreement may be amended or modified, and any of the terms, covenants,
representations, warranties, or conditions hereof may be waived, only by a
written instrument executed by the parties hereto, or in the case of a waiver,
by the party waiving compliance.  Any
waiver by any party of any condition, or of the breach of any provision, term,
covenant, representation, or warranty contained in this Escrow Agreement, in
any one or more instances, shall not be deemed to be nor construed as further
or continuing waiver of any such condition, or of the breach of any other provision,
term, covenant, representation, or warranty of this Escrow Agreement.

15.           Entire Agreement.  This Escrow
Agreement contains the entire understanding among the parties hereto with
respect to the escrow contemplated hereby and supersedes and replaces all prior
and contemporaneous agreements and understandings, oral or written, with regard
to such escrow.

16.           Section Headings.  The section
headings in this Escrow Agreement are for reference purposes only and shall not
affect the meaning or interpretation of this Escrow Agreement.

17.           Counterparts.  This Escrow
Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which shall constitute the same instrument.

18.           Resignation.  Escrow Agent
may resign upon 30 days advance written notice to the Customer.  If a successor Escrow Agent is not appointed
within the 30-day period following such notice, Escrow Agent may petition any
court of competent jurisdiction to name a successor Escrow Agent.

[Signature page follows]

 

4

 

 

In
Witness Whereof, the
parties hereto have caused this Escrow Agreement to be executed the day and
year first set forth above.

	
   

  	
   

  	
  VendingData Corporation, a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  John R. Spina

  
	
   

  	
   

  	
  Its:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wells Fargo Bank, National
  Association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  

 

 

5

EXHIBIT A

 

ESCROW FEE SCHEDULE

ACCEPTANCE FEE:                                                                                                                                                  $2,000.00

For initial services
including examination of the Escrow Agreement and all supporting documents this
is a one-time fee payable upon the opening of the account.

ADMINISTRATION FEE:                                                                                                                                         $2,500.00

An annual charge or any
portion of a 12-month period thereof. 
This fee is payable upon the opening of the account and annually
thereafter.  This charge is not prorated
for the first year.  There is an
additional $250 annual charge for each sub account opened.

	
  TRANSACTION
  FEE:

  	
   

  	
  $_______

  
	
  Wire transfer of funds

  	
   

  	
  $25.00

  
	
  Other transfer of funds (ie. checks, internal
  account transfers)

  	
   

  	
  $10.00

  
	
  Asset transactions
  (purchases/sales/calls/deposit/withdrawls, etc.)

  	
   

  	
  $20.00

   

  

No charge for Wells Fargo
Fund transactions other than those disclosed in the Fund Prospectus.

EXTRAORDINARY SERVICES:

For any services other
than those covered by the aforementioned, a special per hour charge will be
made commensurate with the character of the service, time required and
responsibility involved.  Such services
include but are not limited to excessive administrative time, attendance at
closings, specialized reports (eg. tax reporting) and record-keeping, unusual
certifications, etc.

1099-Tax reporting                                                                                                                                            $15.00
per report

Other Tax reporting                                                                                                                                           per
hour charge

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