Document:

Exhibit 10.5

                           MEMORANDUM OF UNDERSTANDING

                              Between: Ten Stix Inc
                            President: Mr Tom Sawyer
                        Vice President: Mr Tony Cranford
                                        &
                                BCD Mecanique Ltd
                     President: Mr Real Berube (not present)
                               Authorized by Proxy
                                 Mr Marcel Huard

Discussions were held on the 23rd of September 1998, at the Monte Carlo Hotel in
Las Vegas concerning the following:

     1) Broadening the scope the U.S Patent Application filed by Ten Stix Inc.
     on the 25th of August 1997 Application serial number 08/918,944, naming as
     inventors Mr Tom Sawyer and Mr Tony Cranford by way of filing at least one
     new Continuation-In-Part (CIP) Application in the U.S.A. This new patent
     application will integrate at least some subject matter from International
     PCI Application serial number PCT/1B98/01322 filed by BCD Mecanique Ltd on
     the of August 1998, naming as inventors Mr Tom Sawyer, Mr Tony Cranford, Mr
     Marcel Huard and Mr Real Berube.

     2) The ownership of patent rights in the mentioned CIP application.

     3) The right to use improvements and additions contained in the mentioned
     CIP application.

Whereas Ten Stix Inc has assigned to BCD Mecanique Ltd ownership of the
International Patent Application referenced above in all countries except for
the USA, the parties agree as follows:

     BCD Mecanique Ltee will pay for the filing of the mentioned U.S CIP
Application through and by its patent agents, Swabey Ogilvy Renault, in
Montreal, Canada, and their associates attorneys in the USA.

     BCD Mecanique Ltee will endeavor to obtain a granted patent for patent
claims in the mentioned CIP application to the invention disclosed in US patent
application serial number 08/918,944 filed by Ten Stix mc, which patent claims
are broader than the claims as originally filed.

<PAGE>

Memorandum of Understanding
between Ten Stix inc. and BCD Mecanique Ltee

     The PCT patent application filed by BCD Mecanique Ltee describes and claims
features relating to methods for controlling the bonus point indicator system
and for operating an auxiliary prize game making use of the bonus point
indicator system, which features are the invention of Marcel Huard and Real
Berube, and consequently the latter two inventors may be named as co-inventors
in the mentioned CIP application in the case that features originated by them
are claimed.

     With regard to ownership of the mentioned CIP US patent application, Ten
Stix Inc. shall remain owner of the patent rights with respect to all aspects of
the invention as claimed in the CIP application which were explicitly disclosed
in or could be readily inferred from US patent application serial number
08/918,944 filed by Ten Stix Inc.

     For those features which are disclosed in PCT/1B98/01322 and are not
disclosed in or readily inferred from the mentioned US patent application serial
number 08/918,944 filed by Ten Stix mc, BCD Mecanique Ltee. will be the owner of
the patent rights in the USA and in other countries. BCD Mecanique grants to Ten
Stix Inc the right to use any such features which may be included in Ten Stix
Inc's Ten Stix 21 game for a royalty fee of $175.00 US dollars, per table, per
month.

     Ten Stix Inc will not have to pay a royalty fee if the Ten Stix 21 game is
in the format which is mentioned in the Cross License Agreement dated July 5th
1997.

     Notwithstanding the cross-license agreement dated July 5, 1997 entered into
by Ten Stix Inc. and BCD Mecanique Ltee Ct al., BCD Mecanique Ltee, DEQ Casinos
Int., and Amusements "Extra" Inc. shall have the right to use TSI's invention as
defined the the mentioned cross-license agreement along with any improvements
and/or additions contained in the mentioned CIP application. This right shall
extend to parties licensed by BCD Mecanique Ltee to make and/or sell and/or
operate products and equipment using BCD Mecanique Ltee's patented technology.

     This agreement will in no way cancel or affect any of the clauses in the
cross license agreement of July 5th 1997.

It is concluded by the parties that this memorandum is an outline draft which
will be drafted as an agreement contract by the lawyers of competence in this
matter.

26/09/98                                                                 Page 2

<PAGE>

Memorandum of Understanding
between Ten Stix Inc. and BCD Mecanique Ltee

Signed this 25th day of September 1998 in Las Vegas, Nevada at the Monte Carlo
Hotel

BCD Mecanique Ltee                          Ten Stis Inc.
Mr. Marcel Huard                            President Mr. Tom Sawyer

By:  /s/  Marcel Huard                      By:  /s/  Tom Sawyer
   -------------------------------             ------------------------------
          Marcel Huard                                Tom Sawyer

                                            Vice President: Mr. Tony Cranford

                                            By:  /s/  Tony Cranford
                                               ------------------------------
                                                      Tony Cranford

Witness: Mr. Marcel Guillemette

By:  /s/  Marcel Guillemette
   -------------------------------
          Marcel Guillemette

26/09/98                                                                 Page 3

<PAGE>

A.B.C.D. Electro-Mecanique Ltee
--------------------------------------------------------------------------------

     I, the undersigned, Real Berude, president of B.C.D. Mecanique Ltee, and
     owner of U.S. patent number 5,743,800, authorize Mr. Marcel Huard to
     represent B.C.D. Mecanique Ltee in the exercise of its rights and powers,
     to act as official proxy and is duly authorized by the company in the
     verification of upholding it's patent rights.

     Signed in St-Romuald, Quebec, Canada this day of 18 September 1998.

     B.C.D. Mecanique Ltee.

     By:  /s/  Real Berude
        -------------------------------------
               Real Berude

     Accepted By:  /s/  Marcel Huard
                 ----------------------------
                        Marcel HuardExhibit 10.6

                                LICENSE AGREEMENT
                                -----------------

     This Agreement, effective upon execution by both parties, is made by and
between Progressive Games, Inc. ("PGI"), a corporation organized and existing
pursuant to the laws of the State of Delaware and having a principal place of
business at 5370 N.W. 35th Terrace, Bldg. B, Ste. 111, Ft. Lauderdale, FL 33309,
and Ten Stix, Inc. (hereinafter "LICENSEE"), a corporation organized and
existing pursuant to the laws of the State of Colorado and having a principal
place of business at 3101 Riverside Drive, Idaho Springs, Colorado 80452.

                                   WITNESSETH
                                   ----------

     WHEREAS, PGI has sued LICENSEE for infringement of PGI's U.S. Patents Nos.
5,544,893; 5,584,485; and 5,626,341 in the lawsuit Progressive Games, Inc. v.
Summit International Group, et al., in the United States District Court For The
District of Colorado, Civil Action No. 97-WY-2689-CB.

     WHEREAS, the parties to this AGREEMENT have resolved the lawsuit in
accordance with an Agreement completely executed on                 ,1998, which
contemplates the consummation of this AGREEMENT as part of the resolution of the
lawsuit; and

     WHEREAS, the parties to this AGREEMENT wish to consummate the same as part
of the resolution of the lawsuit.

     NOW THEREFORE, the parties agree as follows:

     1. (a) PGI grants to Ten Stix, Inc. a non-exclusive right and license under
any of P01's U.S. patents (whether existing or yet to be issued) that are based
solely upon the same disclosure in either P01's existingjackpot patents or any
of PGI's currently pending jackpot patent applications to manufacture, have

                                     1

<PAGE>

manufactured, use, and lease (but not sell) a jackpot component as an additional
feature for the live casino table game known as "SHOTGUN 21", the rules of play
for which are recited in Exhibit A attached hereto (hereinafter"GAME") for
installational operation only in the states of Colorado, New Mexico and Nevada,
including any Native American lands located within such states (hereinafter
"TERRITORY").

        (b) The right and license does not extend to any variation of GAME, to
any conventional twenty-one game, to any other table games, or to any
electronic, video, or Internet games.

        (c) LICENSEE and any approved sublicensee may lease, but shall not sell
or transfer ownership of, any equipment specifically designed for use in
operating the licensed jackpot component associated with GAME.

        (d) LICENSEE acknowledgesthat it desires the licensed package of PGI's
patent rights and that PGI has in no way imposed such a package.

     2. LICENSEE and any approved sublicenseesshall use theirbest reasonable and
diligent efforts in each gaming jurisdiction within TERRITORY to obtain such
governmental and regulatory approvals as are necessary to lawfully operate the
GAME with a licensedjackpot component in such jurisdiction and thereafter to
market and install the GAME with a licensed jackpot component in such
jurisdiction. If LICENSEE fails to obtain such approvals within eighteen months
after the date of this AGREEMENT for GAME with a licensed jackpot component,
then the license and right granted in paragraph 1 shall be permanently
terminated with respect to such jurisdictionfor any such GAME.
Additionally,LICENSEE and any approved sublicensees shall use their best
reasonable and diligent efforts to market GAME with a licensed jackpot component
in TERRITORY.

                                        2

<PAGE>

     3. (a) In the event LICENSEE or any approved sublicensees fail to meet the
following minimum installed base of GAME tables with a licensed jackpot
component in the states and as of the dates set forth below, the license and
right granted in paragraph 1 hereof shall automatically, immediately, and
forever terminate as to any such state:

                   MINIMUM INSTALLED
                   -----------------
TERRITORY          BASE OF GAME TABLES       DATES
---------          -------------------       -----
Colorado           8 tables                  The earlier of 1 1/2 years after
                                             regulatory approval for the GAME
                                             with a licensedjackpot component or
                                             2 1/2 years after the complete
                                             execution of this AGREEMENT, and
                                             each successive anniversary
                                             thereafter

New Mexico         8 tables                  The earlier of 1 1/2 years after
                                             regulatory approval for the GAME
                                             with a licensedjackpot component or
                                             2 1/2 years after the complete
                                             execution of this AGREEMENT, and
                                             each successive anniversary
                                             thereafter

Nevada             30 tables                 The earlier of 1 1/2 years after
                                             regulatory approval for the GAME
                                             with a licensedjackpot component or
                                             2 1/2 years after the complete
                                             execution of this AGREEMENT

Nevada             50 tables                 Six months after the 3rd
                                             Anniversary after the complete
                                             execution of this Agreement, and
                                             each successive anniversary
                                             thereafter

        (b) If LICENSEE attains any of the minimum installed base of GAME tables
in any jurisdictionas of any of the required dates, then PGI shall not
distribute, market, sell, lease, or

                                        3

<PAGE>

     3.(a) In the event LICENSEE or any approved sublicensees fail to meet the
use GAME with any licensed jackpot component anywhere during the term of the
license granted under paragraph 1 hereof and for 2 years thereafter. The
foregoing potential obligation of PGI does not extend to any variation of GAME,
to any conventional twenty-one game, to any other table games, or to any
electronic, video, or Internet games.

     4. (a) LICENSEE shall pay to PGI a minimum monthly license fee of two
hundred fifty dollars ($250.00) per month for each GAME table with a licensed
jackpot component distributed and operationally installed by LICENSEE or any
approved sublicensee, regardless of whether LICENSEE or any such sublicensee
receives payments from customers for any such GAME table. If LICENSEE or any of
its approved sublicensees charges a casino or other end user more than one
thousand two hundred dollars ($1,200.00) per month for any GAME table with a
licensed jackpot feature, then LICENSEE shall additionally pay to PGI sixty
percent (60%) of any amOunts charged by LICENSEE or any of its approved
sublicensees in excess of one thousand two hundred dollars ($1,200.00). LICENSEE
and any approved sublicensees shall not excessively charge casinos and other end
users for fees other than monthly fees for GAME tables with a licensed jackpot
feature in order to artificially depress such monthly fees. The parties expect
such monthly fees charged to customers will be approximately eight hundred
dollars ($800.00) to one thousand five hundred dollars ($1,500.00) in current
dollars per month per such table.

        (b) Notwithstanding the obligations in subparagraph 5(a), if LICENSEE or
any approved sublicensee operationally installs a GAME table with a licensed
jackpot component in any permitted jurisdiction during a regulatory field test
or within two months after regulatory approval of same and does not charge its
customer a monthly lease fee of at least four hundred dollars ($400.00) for the
first two months of operational installation, then LICENSEE need not pay any

                                        4

<PAGE>

     3. (a) In the event LICENSEE or any approved sublicensees fail to meet the
monthly license fee to PGI respecting such GAME table for only such first two
months.

        (c) The payments recited in this paragraph 4 shall not be deemed
reasonable royalty rates in calculating damages for purposes of patent
infringement and are recognized by the parties as being low fees as a compromise
in litigation involving the parties.

     5. Within fifteen (15) days after each calendar month, LICENSEE and each
approved sublicensee shall present to PGI a full, detailed, and accurate
statement showing the calculation of payments due to PGI under paragraph 4 of
this AGREEMENT. Such statement shall be presented to PGI regardless of whether
any such payments are due. Simultaneous with the statement presentment, LICENSEE
shall pay to PGI the amounts due and owing to PGI under paragraph 4 of this
AGREEMENT. All payments provided under this AGREEMENT shall, when overdue for a
period in excess of five (5) days, bear interest at the rate of one and one-half
percent (1 1/2%) per month until paid.

     6. LICENSEE and each approved sublicensee shall keep accurate books of
account and records of all transactions relating to this AGREEMENT in accordance
with generally accepted accounting principles in order to provide a verifiable
audit trail. LICENSEE and each approved sublicensee shall maintain and preserve
for a period of seven years all books, lease agreements, shipping invoices, and
other records evidencing or otherwise relating to this AGREEMENT. LICENSEE and
each approved sublicensee shall permit a certified public accountant appointed
by PGI and to whom LICENSEE or such sublicensee has no reasonable objection to
review such books and records upon reasonable notice and during normal business
hours. If such a review determines that LICENSEE or such sublicensee has
underpaid PGI by more than 5% (five percent) during the time period being
reviewed, then LICENSEE or such sublicensee shall pay the reasonable costs of
such review.

                                        5

<PAGE>

     7. (a) PGI does not warrant or representthat LICENSEE's license and
permitted use of PGI's U.S. patents will not infringe the rights of third
parties.

        (b) PGI does not warrant or represent that PGI's relationship with
LICENSEE pursuant to this AGREEMENT will not cause gaming regulatory problems
for LICENSEE or for GAME.

        (c) PGI does not warrant or represent that its licensed U.S. patents are
valid or enforceable or are of any particular scope or that PGI will pursue or
maintain such patents.

        (d) PGI does not warrant or represent that its licensed U.S. patents
will not be infringed in TERRITORY or that PGI will undertake to cause any such
infringement to cease.

     8. LICENSEE and each approved sublicensee shall indemnify, defend and hold
harmless PGI, and its officers, directors, employees and stockholders from,
against and with respect to any claim, liability, obligation, loss, damage,
assessment,judgment, cost and expense (including, without limitation, reasonable
attorney's and accountant's fees and costs and expenses reasonably incurred in
investigation, preparing, defending against or prosecuting any litigation or
claim, action, suit, proceeding or demand) of any kind or character, arising out
of or in any manner incident, relating or attributable to LICENSEE's or any
approved sublicensee's activities respecting GAME with a licensed jackpot
component or respecting activities in furtherance of or permitted by this
AGREEMENT. The foregoing obligation shall not extend to claims asserting that
PGI does not have the power or right to grant the license contained herein or
the power and right to enter into this AGREEMENT.

     9. LICENSEE and any approved sublicensees shall apply such patent notices
and warnings as reasonably directed by PGI.

                                       6

<PAGE>

     10. The parties shall maintain the terms and conditions of this AGREEMENT
as confidential, except as may be confidentially disclosed to co-defendants in
the lawsuit, as may be disclosed to regulatory authorities by necessity, or by
virtue of any validly issued subpoena, and as may be disclosed by LICENSEE to
prospective sublicensees preapproved by PGI, provided however, that LICENSEE
previously notifies PGI of the intended disclosure.

     11. LICENSEE and each approved sublicensee shall use its reasonable best
efforts to cause any casino or other end user to return to LICENSEE any
equipment specifically designed for use in connection with operating GAME with a
licensed jackpot component and to cease operating GAME with a licensed jackpot
component whenever LICENSEE or such sublicensee ceases to be licensed or ceases
to authorize the casino to operate GAME with a licensed jackpot component.

     12. LICENSEE is an individual contractor and not an agent, partner,
employee or legal representative or otherwise authorized to act on behalf of
PGl. LICENSEE is not authorized to make any agreement, warranty, covenant or
other representation or to create any implied or express obligation on behalf of
PGI.

     13. Neither the rights, the benefits, nor the obligations under this
AGREEMENT shall be assigned or assignable, sublicensed or sublicenseable, or
transferred or transferrable by LICENSEE, and any attempted assignment,
sublicense, or transfer by LICENSEE shall be null and void and shall operate to
terminate the license granted under paragraph 1 of this AGREEMENT unless PGI's
prior written consent, which may be withheld in PGI's sole and absolute
discretion, is obtained. An assignment, sublicense or transfer shall be deemed
to include transactions such as a merger of corporations, sale of bulk assets,
sale of controlling stock interest, and the like, but shall not be deemed to

                                        7

<PAGE>

include a public offering of substantially all of the stock of LICENSEE.
Notwithstanding the foregoing, LICENSEE may transfer its entire benefits and
obligations under this AGREEMENT to Summit International Group, Inc. upon prior
written notice to PGI. As to a private sale of controlling stock interest in
LICENSEE, PGI shall not unreasonably withhold its consent.

     14. (a) Without prejudice to any other rights, LICENSOR shall have the
right to terminate the license granted under paragraph 1 of this AGREEMENT
immediately at any time:

               (1) If LICENSEE or any approved sublicensee fails to make any
          payment due hereunder or to deliver any of the statements herein
          referred to, and if such default shall continue for a period of thirty
          (30) days after written notice of such default is sent to LICENSEE;

               (2) Subject to the foregoing exception in subparagraph 14(a)(1),
          if LICENSEE or any approved sublicensee fails to perform any other
          material term or condition of this AGREEMENT and the same can not be
          cured or has not been cured within fifteen (15) days after written
          notice is sent to LICENSEE;

               (3) If LICENSEE is denied a gaming license in any jurisdiction as
          to that jurisdiction the license is terminated; or

               (4) If any gaming jurisdiction requires PGI to sever its business
          relationship with LICENSEE as a condition of PGI's gaming licensure or
          right to conduct business in that jurisdiction.

               (5) If LICENSEE is unable to pay its liabilities when due, or
          makes any assignment for the benefit of creditors, or files any
          petition in bankruptcy, or is adjudicated  bankrupt or  insolvent,  or

                                        8

<PAGE>

          if any receiver is appointed for its business or property, or if any
          trustee in bankruptcy, or insolvency is appointed (if terminated under
          this clause, such termination shall be effective one day before any
          petition in bankruptcy is filed); or

          (b) LICENSEE may terminate the license granted under paragraph or
territory by giving PUI written notice otthe same.

          (c) Any termination of the license granted under paragraph 1 hereof
shall approved sublicenses granted by LICENSEE, unless such sublicenses provide
h PGI's consent and unless such sublicense provides that monthly fees and other
made directly by the casinos or other end users to PGI.

          (d) Upon any termination of the license granted under paragraph 1
hereof (except under paragraph 14(b) as to any state within TERRITORY, LICENSEE
and any icensees may continue to receive monies from any GAME tables with a
licensed jackpot component already installed by LICENSEE or any of its approved
sublicensees within such Dd of six (6) months after any such termination.
LICENSEE shall continue to make payments to PGI under paragraph 4 respecting
such GAME tables within said six (6) month period.

     15. All notices, submissions, requests, and statements to be given and all
payments to be made hereunder shall be given or made at the respective addresses
of the parties as set forth above unless notification of a change of address is
given in writing. Any notice shall be sent by registered mail and shall be
deemed to have been given at the time it is mailed. The respective ts follows:

                                       9

<PAGE>

                  PGI:                     David Thompson
                                           Mikohn Gaming Corporation
                                           1045 Palms Airport Dr.
                                           Las Vegas, NV 89119

                                   cc:     Robert E. Purcell, Esq.
                                           Reilly, Purcell & Lewis, P.C.
                                           1120 Lincoln St., Suite 1500
                                           Denver, CO 80203

                  LICENSEE:                Ten Stix, Inc.
                                           3101 Riverside Drive
                                           Idaho Springs, CO 80452

                                   cc:     Arthur H. Bosworth, III, Esq.
                                           Treece Alfrey Musat & Bosworth, PC
                                           999 18th St., #1600
                                           Denver, CO 80202-24 16

     16. This AGREEMENT shall be governed by the laws of the State of Colorado.

     17. Any controversy or claim arising out of or relating to this AGREEMENT
or the breach thereof shall be resolved in the state and federal courts located
in the State of Nevada, and the parties waive their right to any other
jurisdiction or venue.

     18. This AGREEMENT shall not be modified or modifiable except by a writing
signed by PGI and LICENSEE.

     19. The failure of either PGI or LICENSEE to insist upon the strict
performance of any of the provisions of this AGREEMENT, or the failure of either
PGI or LICENSEE to exercise any right or remedy hereby reserved, shall not be
construed as a waiver for the future of any such provisions, right or remedy, or
as a waiver of any subsequent breach thereof.

     20. The parties hereto agree to provide reasonable assistance to any and
all gaming regulatory agencies to expeditiouslyprocess the approval and/or
suitability of GAME with a licensed jackpot component in any jurisdiction within
TERRITORY.

                                       10

<PAGE>

     21. LICENSEE represents that to the best of its knowledge no corporate
officer, director or shareholder has been found non-suitable to hold a
privileged gaming license in any jurisdiction. PGI may terminate the license and
right granted under paragraph 1 of this AGREEMENT at any time its relationship
with LICENSEE seriously encumbers or jeopardizes PGI's gaming licensure in any
jurisdiction.

     IN WITNESS HEREOF, the parties' respective authorized representatives have
set their hands herebelow.

PROGRESSIVE GAMES, INC.                     TEN STIX, INC.

By:  /s/  Charles H. McCreg, Jr.            By:  /s/  Thomas E. Sawyer
   ------------------------------              -------------------------------
          Charles H. McCreg, Jr.                      Thomas E. Sawyer
          Executive Vice President                    President
          and General Counsel

                                       11

<PAGE>

                                  EXHIBIT A TO
                               LICENSE AGREEMENT

     Shotgun 21tm Is a Class III game played with six dual positions. The house
is dealing 12 hands per round Instead of the standard seven hands, bringing a
larger drop in virtually the same amount of time, A bonus pay-off system is
introduced into the game adding to the excitement of this quick action game.

TABLE GAME RULES

     Each position represents a shotgun barrel with a sight on top. Players can
wager in one or both barrels. These wagers do not have to be equal. The player
is now playing one or two hands of regular black jack.

   Prior to the beginning of each hand,  players have an  opportunity to make an
additional wager on the sight.  Under the sight are lights.  The chips cover the
lights.  Through the use of a very  sophisticated  dealer  control  panel,  the
dealer activates the game. Randomly,  one to three of the sight lights will stay
on and a random dollar prize amount will be  displayed,  If a player has wagered
the extra bet,  makes a  predetermined  hand,  and has a sight light on, he/she
wins the displayed prize amount or a percentage of the randomly selected prize.

CLASS III VERSION

GAME OBJECflVE

     To make a qualifying poker hand with the player's two cards combined with
the community cards.

TABLE GAME RULES.

--   Each player has the option to wager $1 for the Jackpot Qualifier.
--   Each player places a wager In the front circle of the eight conforming with
     the table minimum and maximum bets.
--   Each player is dealt two cards face down. The player may then decide to
     continue or surrender halt of his/her original wager.
--   Directly in front of the dealer, three community cards are dealt face up
     plus a rourth community card face down. Each player has the option to stay
     at this point or continue. Players staying place their cards face down next
     to their initial wager.
--   Players continuing make a wager equal to their first water in the back
     circle of the figure eight.
--   All players staying on the first bet show their cards to the dealer.
     Qualifying hands are paid according to the five-card pay table, Losing
     hands are taken.
--   The dealer turns the fourth card for all players making the second wager.
     The same pay and take procedure is followed this time, using the six-card
     pay table.
--------------------------------------------------------------------------------

Ten Stix, Inc., P.O. Box 689, Idaho Springs, CO 80452 303-567-0163

c 1994-1997 Ten Stix, Inc. All rights reserved. All products trademarked. U.S.
and foreign patents pending. Hold'em(TM) , Ten Stix 21(TM), and Shotgun 21(TM)
are trademarks of Ten Stix, Inc.

The Extra March is a copyrighted and trademarked product manufactured by DEQ
Casinos International Saint-Romuald, Quebec, Canada, U.S. and foreign patents
pending

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]