Document:

<PAGE>   1

                                                                   Exhibit 10.30

                            LOTTERY ENTERPRISES, INC.

                                       and

                            IGOR, THE WATCHDOG CORP.

                               SERVICES AGREEMENT

This Agreement is between Lottery Enterprises, Inc. (hereinafter referred to as
"LEI") and IGOR, The Watchdog Corp. (hereinafter referred to as "IGOR").

WHEREAS, the parties hereto desire to enter into an Agreement for IGOR to
provide for the installation and service of instant ticket vending machines
(ITVM's) in Illinois;

Now, therefore, in consideration of the respective agreements of the parties
hereto, LEI and IGOR agree as follows;

IGOR shall provide warehouse locations in Tinley Park and Springfield for
distribution and installations of ITVM's.

IGOR shall provide for the installation of ITVM's.

IGOR shall provide ITVM training for agents and lottery personnel. including
training new employees and refresher training to existing employees.

IGOR shall provide for the servicing of the ITVM's in accordance with the
procedures set forth in the ITR-7500 ITVM Technical Manual provided by LEI.

IGOR shall provide monthly quarterly preventive maintenance and customer service
visits; as well as delivery of supplies, as needed, for the ITVM's.

Should the Illinois Lottery exercise its option to choose a six (6) days per
week service availability schedule, it is understood that the preventive
maintenance schedule shall be altered to provide for preventive maintenance
service to each ITVM every 60 calendar days.

IGOR shall provide statewide dispatch services.

IGOR shall provide use of their warehouse and depot facilities.

IGOR shall provide limited data processing services.

IGOR will provide personnel to staff the Retailer Support/Dispatch Department.
<PAGE>   2

IGOR will provide one (1) LEI trained technician for every 130 ITVM's in
Illinois.

IGOR will guarantee a response time of four hours for critical calls from the
time a technician is dispatched to the time the technician arrives at the agent
location. Non-critical service calls will be closed out within 24 hours. All
service calls bring a follow-up call by a customer service representative.

IGOR's technicians will have an inoperative ITVM up and running within 30
minutes of arriving at the agent location and obtaining the keys from the
appropriate person.

IGOR agrees that all IGOR technicians will carry pagers, two-way radios or
phones for immediate notification of service needs.

IGOR agrees that all IGOR technicians will carry photo ID badges for proper
identification.

IGOR agrees that all IGOR technicians will wear uniforms and present a
professional image at all times.

IGOR agrees to store supplies and spare parts for the ITVM's and provide a full
and complete inventory of same on the last working day of each month for the
term of this Agreement..

IGOR agrees to represent IGOR, LEI and the Illinois Lottery in a professional,
competent and efficient manner.

IGOR agrees to furnish one (1) bench technician plus space and utilities for the
bench technician's operation should this option be requested in writing by LEI.

LEI agrees that all IGOR technicians will receive thorough training by LEI on
both technical training as well as customer service training.

LEI shall be responsible for dispatch and service telephone costs, including the
in-bound toll-free phone lines and the out bound call back line.

LEI agrees to furnish IGOR all the supplies for the ITVM's, including all
cleaning materials.

LEI agrees to furnish IGOR with all the tools and equipment necessary to provide
service and preventive maintenance on the ITVM's for all technicians and
warehouse staff.

LEI agrees to furnish all the spare parts for the ITVM's and reimburse IGOR for
the cost of shipping parts back to LEI.
<PAGE>   3

LEI agrees to train IGOR's bench technician plus furnish all the tools, benches,
equipment and parts necessary for the bench technician's operation if and when
this option is exercised by LEI..

LEI agrees to furnish IGOR all of the training materials for the operation and
service of the ITVM's.

These materials shall include, but are not limited to the following:

      o     Operating Manuals.
      o     Technician Manuals.
      o     Quick Reference Cards - Operator
      o     Quick Reference Cards - Technician
      o     Service forms.
      o     History cards.

LEI agrees to furnish IGOR with LEI technical support on a continuing basis.

LEI agrees to compensate IGOR as follows:

      Maintain ITVM's

      $26.50/month* per installed ITVM
      (based on Monday through Saturday service from 8:30 am, to 5:00 p.m.)

      $20.00/Month* per installed ITVM
      (based on Monday through Friday service from 8:30 a.m. to 5:00 p.m.)

      Dispatch and Agent Hotline

      $ 2/month* per installed ITVM
      (based on Monday through Friday service from 8:30 a.m. to 5:00 p.m.)

      Installation and removal charges
      $80/per ITVM for installation
      (not including installation or hooking up LEI Shadow or The Grabber -
      Sign)
      $60/per ITVM for removal

      Bench Technician Services-Optional
      $13/per hour x 40 hours per week plus an agreed upon amount per month for
      space required and prorated utility cost. This shall be at the written
      request of LEI if and when such technician is deemed necessary.
<PAGE>   4

      Storage Space

      $ 5/per ITVM per month for storage of ITVM's over 30 days at IGOR
      warehouses.

      Additional services to be performed by IGOR can be negotiated and added to
      this agreement as needed.

*     per month or fraction thereof

      IGOR shall submit monthly invoices to LEI for services rendered by IGOR
pursuant to this Agreement to an address designated by LEI. Payment for such
invoices shall be due within ten (10) days of receipt by LEI. On all amounts not
properly paid by LEI when due under each Schedule, interest shall accrue at the
rate of one percent (1 %) per month or portion thereof (or the maximum rate
allowable by law, if less) from the due dates thereof until received by IGOR,
and shall be payable to IGOR without demand.

The term of this Agreement shall run concurrent to the term of the Contract
between the Illinois Department of - The Lottery "Lottery" and LEI, "The
Contract", attached as Exhibit "A", including any extensions and/or renewals. In
the event of conflicting terms or conditions, the terms of the Contract shall
control.

IGOR will abide by and comply with the laws of the State of Illinois and the
rules and regulations of the Illinois Lottery.

LEI, the Lottery and the State of Illinois do not assume any liability or
responsibility of any kind whatsoever resulting from this Agreement for the
actions or failure to act by IGOR. It is further understood and agreed that all
employee compensation, insurance, benefits and obligations of any type due to
IGOR's employees, their heirs or assigns, shall be the sole responsibility of
IGOR.

LEI and IGOR hereby agree that all terms and conditions of this Agreement are
fully set forth herein and further agree that only those terms and conditions
set forth herein, and the relevant terms and conditions set forth in "Contract"
as set forth above and incorporated by reference shall constitute the final
enforceable Agreement between these parties. No terms and conditions of this
written Agreement can be varied or waived by any representations or promise on
the part of any party hereto unless such modifications be in writing and
mutually signed by the duly authorized agents of the parties hereto.
<PAGE>   5

This Agreement shall only be terminated for the following reasons, and only with
the agreement and approval of the Illinois Lottery;

o     Mutual agreement by both parties.
o     Termination of the Contract between the Lottery and LEI.
o     For Just Cause.

IN WITNESS THEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives.

       LOTTERY ENTERPRISES, INC.                  IGOR, THE WATCHDOG CORP.

       By: /s/ Robert Burr                        By: Mike Guthrie
          ---------------------------------          ---------------------------
       Robert Burr President/CEO                      Mike Guthrie, President

       Address: 9190 Activity Road                Address: 7650 Graphic Dr.
       San Diego, CA 92126                        Tinley Park, IL 60477

       Date: 7/15/94                              Fed Tax ID: 36-2964204

       Approved: State of Illinois Department of Lottery

       By:________________________
<PAGE>   6

                        On-Point Technology Systems, Inc.
                                       and
                            IGOR, The Watchdog Corp.

                         Service Agreement - Amendment 2

This amendment to the Service Agreement dated July 15, 1994 and as amended is
made between On-Point Technology Systems, Inc., (hereinafter referred to as
"On-Point") and IGOR, The Watchdog Corp. (hereinafter referred to as "IGOR").

This amendment is made with respect to the additional services to be provided by
IGOR pursuant to On-Point's amended agreement with the Illinois Lottery
(hereinafter referred to as "Lottery"). The additional services to be provided
by IGOR are i). the installation of new software EPROMS in the ITVMs to effect
Y2K compliance, ii). the installation of new software EPROMS in the bill
acceptors to effect the acceptance of new U.S. currency issued by the U.S.
Treasury, and iii). all the other services required in accordance with the
Service Agreement to all On-Point ITVMs which will be owned by the Lottery
during the term of our Agreement.

Now, therefore, in consideration of the respective agreement of the parties
hereto, IGOR agrees as follows:

1.    IGOR will install into all On-Point ITVMs owned or leased by the Lottery
      new software EPROMs, provided by On-Point, to effect a software
      modification to upgrade the ITVMs to Y2K compliance. IGOR will track and
      maintain a list of all of the ITVMs by serial number showing those ITVMs
      that have been upgraded to Y2K compliance and those ITVMs that are still
      to be upgraded. This list will be forwarded to On-Point by the 15th day of
      each month. The upgrade program to all of the ITVMs will be completed no
      later than November 30, 1999. For any machines not upgraded by November
      30, 1999, On-Point shall have the right to withhold all amounts that may
      be due to IGOR pursuant to the Service Agreement including any other
      rights or remedies available to On-Point, and deduct from any amounts due
      any penalties that the Lottery may assess for non-performance.

2.    When requested by On-Point during the term of the Service Agreement IGOR
      will install the EPROMs, provided by On-Point, into the bill acceptors to
      effect the upgrade to permit the acceptance of new U.S. currency. IGOR
      will track and maintain a list of all of the ITVMs by serial number
      showing those ITVMs' whose bill acceptor has been upgraded together with
      the serial number of the bill acceptor that have been upgraded and those
      ITVMs that are still to be upgraded. Further, IGOR will provide a list by
      serial number of those bill acceptors held in spare parts inventory that
      have been upgraded and those that have not been upgraded. IGOR agrees that
      the upgrade to bill acceptors held in spare parts inventory will be
      upgraded
<PAGE>   7

On-Point and IGOR Service Agreement
Amendment 2
Page 2 of 3

      in a separate process from bench repairs and as such the number of bench
      repairs normally invoiced to On-Point on a monthly basis will not increase
      due to the upgrade process. IGOR will provide these lists to On-Point by
      the 15th day of each month. IGOR will complete the upgrade program within
      ninety (90) days of written request by On-Point. For any Bill Acceptors
      not upgraded within the 90-day period, On-Point shall have the right to
      withhold all amounts that may be due to IGOR pursuant to the Service
      Agreement including any other rights or remedies available to On-Point,
      and deduct from any amounts due any penalties that the Lottery may assess
      for nonperformance.

3.    IGOR will provide all of the services and upgrades required under the
      Service Agreement to all ITVMs that become the property of the Lottery
      pursuant to the Lottery's right to purchase the ITVMs upon termination of
      their respective leases.

4.    Compensation

      In consideration of the above services to be provided by IGOR, On-Point
      agrees to compensate IGOR by increasing the monthly service fee per ITVM
      by two dollars ($2.00). Therefore, effective July 1, 1999 the monthly
      service fee for all ITVMs owned or leased by the Lottery will be
      thirty-four dollars ($34.00).

      The parties agree that the following Schedule of Services and Fees will be
      effective from July 1, 1999:

      Service                                          Fee

      Preventive and Remedial Service
      Per Installed ITVM Monday through

      Friday 8:30AM to 5:00PM                      $34.00/Month

      Dispatch and Agent Hotline
      Per Installed ITVM Monday through
      Friday 8:30AM to 5:00PM                       $2.00/Month

      Installations and Removals
      Install ITVM 12-bin                               $150.00
      Install ITVM 4 or 8-bin                            $80.00

      Removal ITVM 12-bin                               $120.00
      Removal ITVM 4 or 8-bin                            $60.00

      Install ITVM 12-bin and Removal of
      4 or 8-bin from same location                     $190.00

                                  Page 2 of 3
<PAGE>   8

On-Point and IGOR Service Agreement
Amendment 2
Page 3 of 3

      Change of Ownership

      Factory reset and initializes an existing
      ITVM at an agent location                          $34.00

This amendment was drafted with the joint participation of the parties and/or
their legal council. Any ambiguity contained in this amendment shall not be
construed against any party as the draftsman, but this amendment shall be
construed in accordance with its fair meaning.

The effective date of this amendment shall commence on July 1, 1999.

All other terms and conditions of the original Service Agreement and amendments
shall remain in force unless modified by this amendment.

IN WITNESS THEREOF, The parties hereto have caused the Amendment to be executed
by their duly authorized representatives.

On-Point Technology Systems, Inc.          IGOR, The Watchdog Corp.,

By: /s/ Brian J. Roberts                   By: /s/ Mike Guthrie
   ------------------------------             ---------------------------
Name: Brian J. Roberts                     Name: Mike Guthrie
Title: Senior Vice President               Title: President

Date: 7/16/99                              Date: 7/27/99

Address:                                   Address:

1370 San Marcos Blvd., Suite 100           3461 Gatlin Drive
San Marcos, CA 92069                       Springfield, IL 62707

                                   Page 3 of 3<PAGE>   1

                                                                 Exhibit 10.30.1

                                STATE OF ILLINOIS
                            DEPARTMENT OF THE LOTTERY

                                       and

                            LOTTERY ENTERPRISES, INC.

THIS AGREEMENT between the State of Illinois, Department of the Lottery,
(DEPARTMENT) and Lottery Enterprises, Inc., (CONTRACTOR) provides the following:

1.    TERM. The term of this Agreement shall be for the period commencing July
      1, 1994 or date of Department signature, whichever is later, and shall
      terminate June 30, 1997. The Department shall have the option to extend
      the term of this Agreement for two (2) consecutive one (1) year periods.
      The Department shall notify Contractor of its intent to renew, pursuant to
      this paragraph at least 30 days prior to the termination date.

2.    SERVICES AND DELIVERABLES/OVERVIEW. For a set monthly fee, Contractor will
      deliver, install and maintain up to 1,000 ITR-7500 eight game Instant
      Ticket Dispensing Machines ("ITDM's") at designated Illinois Lottery agent
      locations throughout the State of Illinois, pursuant to schedules from
      time to time entered into between the parties, as well as furnish agent
      training and a toll free agent service hotline, as provided in the
      following documents (which are incorporated by reference as if fully set
      forth herein), and as further detailed in this Agreement:

      (a)   Department's Instant Ticket Vending Machine and Support Services
            Request for Proposal dated February 23, 1994 (the "RFP");

      (b)   Department's March 3, 1994 response to questions submitted pursuant
            to the RFP;

      (c)   Contractor's March 16, 1994 Response to the RFP (hereinafter also
            referred to as the Contractor's proposal);

      (d)   Department's conditional contract award letter dated May 5, 1994;

      (e)   Contractor's best and final price quotation dated June 9, 1994;

      (f)   Graphic depiction of ITDM to be installed at Illinois Lottery agent
            locations, attached hereto as Exhibit A.

      In the event of any conflict between this Agreement and those documents
      incorporated by reference, the provisions of this
<PAGE>   2

       Agreement shall prevail.

3.    PHYSICAL CHARACTERISTICS. The ITDM's to be provided pursuant to this
      agreement shall possess the following physical characteristics in addition
      to those which may be specified in the documents referred to in Paragraph
      2 above:

      -     Each machine shall be labeled as follows: "YOU MUST BE AT LEAST 18
            TO PLAY ILLINOIS LOTTERY GAMES", "THIS MACHINE DOES NOT GIVE CHANGE"
            and "CASH WINNING TICKETS AT SERVICE COUNTER". These notices must be
            located above or around the bill acceptor slot.

      -     Each machine's major components (dispensing units, printer, bill
            acceptor, keypad, base cabinet and sign, if applicable) must be bar
            coded with part numbers and serial numbers for proper inventory
            control.

      -     Each machine must be of durable construction with resistance to
            fading, marring, chipping and rust, and of sufficient material
            strength to resist theft, vandalism, intrusion and accidental
            damage.

      -     Decal describing ticket tear off instructions.

      -     Decal describing how to purchase instructions.

      -     All locks are to be keyed and number coded separately (Master keys
            to be provided to the Department's security office only).

4.    DELIVERY/INSTALLATION/REMOVAL Delivery and installation of ITDM's shall be
      during normal business hours and shall be consistent with the schedule set
      forth on pages 89 - 92 of the Contractor's Response to the Department's
      RFP unless notified otherwise in writing by the Department. This schedule
      shall begin with the effective date of this Agreement. The Department
      shall make its best effort to ensure sufficient installation sites are
      identified to permit the scheduled installations.

      The Department will notify the Contractor in writing if an ITDM is to be
      removed from an agent location for any reason, including but not limited
      to relocation to another agent location. The Contractor shall effect such
      removal within five (5) business days of receipt of that notification.
      Contractor shall not charge a fee for the first five (5) such removals or
      relocations made each month at the Department's request. Thereafter,
      Contractor shall be entitled to a fee of $75.00 for each removal or
      relocation completed at the request of the Department. Contractor shall,
      at the Department's request, relocate a machine within a given agent
      location.

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<PAGE>   3

      There shall be no fee for such intra-location relocation.

      All charges associated with the transportation, delivery, installation or
      removal of the ITDM's shall be borne by the Contractor.

      Contractor shall provide the Department with written certification of the
      delivery of each ITDM and shall specifically certify that training has
      been completed. Said certification must be countersigned by the agent or
      representative of the agent taking delivery of the ITDM. The Department
      and/or its agents shall be entitled to unlimited use and enjoyment of each
      ITDM delivered pursuant to this Agreement. The Department and/or its
      agents shall not use or permit the use of the ITDM's for any purpose
      which, according to the specifications of the manufacturer, the ITDM is
      not designed or reasonably suited. Department and/or its agents shall use
      the ITDM's in a careful and proper manner and shall comply with all the
      Manufacturer's instructions with regard to the use, operation or
      maintenance of the ITDM.

      The Department covenants that each ITDM shall at all times be and remain
      personal property and shall not be so affixed to realty as to become a
      fixture or otherwise lose its identity as the separate property of the
      Contractor. The Department shall keep the ITDM's free and clear of all
      levies, liens and encumbrances except those in favor of the Contractor or
      its assigns. In the event Contractor assigns its rights to payment under
      this contract, pursuant to paragraph 20 herein, Department agrees to
      cooperate in the preparation of those documents and/or materials deemed
      necessary to reflect Contractor's interest in the ITDM's as against third
      parties.

      The Contractor hereby assumes and shall bear the risk of loss with respect
      to any damage, destruction, loss, theft or government taking, whether
      partial or complete and whether through any fault or neglect of the
      Department and/or its agents or otherwise.

5.    TRAINING. For each ITDM installed at Illinois Lottery agent locations
      (including locations where the Contractor is notified by the Department
      that there has been a change of ownership or other circumstance
      necessitating re-training), the Contractor shall provide on-site training
      in the operation of the ITDM, including loading/unloading of tickets and
      basic troubleshooting and repair, and will provide operations manuals and
      quick reference materials for the agents' future reference. Said manuals
      and materials shall be in the language specified by the Department for
      each particular location. Training materials and operations manuals shall
      be updated as requested by the Department to address software upgrades or
      other deficiencies in the information contained

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<PAGE>   4

      therein. A constant supply of said manuals as well as the following
      materials shall be made available, at the Contractor's expense, at each
      location: brochures, training manual, reference card and display card.

      Additionally, as set forth on page 86 of the Contractor's proposal,
      Contractor shall furnish demonstration ITDM's for each of the Department's
      six (6) Regional/District offices and for Lottery Central, and shall
      furnish training and training materials for Department's staff.
      Demonstration ITDM's and training of Lottery staff shall precede the
      delivery of ITDM's pursuant to the schedule referenced in Paragraph 4.
      These machines are in addition to the potential 1,000 ITDM's set forth in
      Paragraph 2 hereof, and need not conform to the color design depicted in
      the Exhibit referenced in subparagraph (F) of Paragraph 2 above. Said
      machines shall remain at the Department's facilities to meet training and
      demonstration needs throughout the term of this Agreement.

      Any and all costs and charges for and associated with training, including
      but not limited to production of materials (including updates) and
      personnel costs, are encompassed by the fee paid by the Department
      referred in Paragraph 12 below and any specific costs and expenses
      associated with such training shall be borne by the Contractor. Training
      should be concluded within two (2) days of installation.

6.    MAINTENANCE/SERVICE. Contractor will provide maintenance of each ITDM
      installed in the State of Illinois as follows:

      Preventive Maintenance: Contractor shall provide on-site preventive
      maintenance service to each ITDM every 60 calendar days.

      Service Calls: Contractor shall provide repair and maintenance service
      upon notification of need for such service by either the Department
      directly or its agents.

      With respect to service calls placed to the agent hotline which
      necessitate the dispatch of service personnel, such personnel shall arrive
      at an agent location within four (4) hours of notification for critical
      calls (defined as those in which the ITDM is rendered incapable of
      dispensing product or accepting payment or recording a transaction) and
      within twenty-four (24) hours for non-critical calls. The ITDM will be up
      and running within thirty (30) minutes of service personnel gaining access
      to the machine.

      The Contractor shall replace an ITDM at no cost to the Department in the
      event that one or more of the following occurs: (A) a particular ITDM
      requires service more than three (3) times in a one-month period, or (B)
      an ITDM cannot

                                       4
<PAGE>   5

      be repaired within a twenty-four (24) hour period.

      Contractor shall maintain records of the date, time and nature of each
      preventive maintenance visit or service call for each ITDM. Such records
      shall be maintained in the form of a log, with each ITDM. In addition,
      Contractor shall maintain a master log of such records and shall retain
      such records for a period of five years after the Termination of this
      Agreement. Contractor shall furnish copies of such records to the
      Department upon request.

      Contractor shall provide sufficient personnel so as to respond to service
      calls six (6) days per week, Monday through Saturday, inclusive.

      Any and all charges for and associated with service/ maintenance are
      encompassed in the fee paid by the Department referenced in Paragraph 12
      below and any specific expenses or costs associated with such service and
      maintenance shall be borne by the Contractor.

7.    WARRANTY. All machines shall be completely warranted for the term of the
      contract, including any extensions thereof, guaranteed from the date of
      installation of each unit. The warranty shall incorporate all costs
      associated with the repair and or replacement of the machines (i.e.,
      hardware, software, components, electronics, labor, freight, etc.) as well
      as replacement of machines per Paragraph 6. In addition, the Department
      retains any and all implied warranties available at law including, but not
      limited to, warranty of merchantability and warranty of fitness for a
      particular purpose.

8.    PERSONNEL. All personnel responsible for installation or servicing of
      ITDM's for Illinois Lottery agent locations must consent to and clear
      background checks for criminal activity, tax compliance and credit
      history. Approved personnel must carry photo identification when visiting
      agent locations for installation or service.

9.    SOFTWARE. The Department's reasonable requests for software modifications'
      and upgrades will be honored by the Contractor and programming will be
      completed and installed within two months of the date of the request. Any
      software modifications/upgrades will be furnished at no charge.

10.   CENTRAL REPORTING SYSTEM. During the term of this Agreement, the
      Department reserves the right to request the installation of ITDM's with
      dial-up capabilities and central system reporting, at or below the prices
      set forth in Item 2(e) above. Should the Department make this election,
      the Shadow Communications/Database System referred to in the Contractor's

                                       5
<PAGE>   6

      proposal shall be set up in Illinois.

11.   SUPPORT. Contractor will provide all equipment, supplies, services, and
      other items of support which may be necessary to the delivery of
      Contractor's services, including but not limited to maintaining, at its
      expense, a constant supply of the following:

            i)    Printer paper
            ii)   Push button labels in the following denominations
                  1)    One dollar ticket
                  2)    Two dollar ticket
                  3)    Three dollar ticket
                  4)    Five dollar ticket
                  5)    Ten dollar ticket
            iii)  Machine signage and decals (in English, Spanish and Polish),
                  as detailed in Paragraph 3
            iv)   Warning labels, as detailed in Paragraph 3
            v)    "Sell-in" brochures
            vi)   "Out of stock" cards

12.   COMPENSATION. The Department will pay to the Contractor, for services set
      forth in Paragraph 2 provided by the Contractor, who will accept as full
      payment for all services the following:

      -     A fee of $177 per month, in arrears, per 8-bin ITDM installed at an
            agent location.

      -     A fee of $161 per month, in arrears, per 6-bin ITDM installed at an
            agent location.

      -     A fee of $141 per month, in arrears, per 4-bin ITDM installed at an
            agent location.

      The Department and the contractor shall periodically execute delivery
      schedules which shall specify the ITDM's delivered (by serial number),
      delivery date and other information. Each schedule shall be executed by
      the parties and shall incorporate the terms and conditions of this
      Agreement.

      The Department may exercise its option to extend this Agreement for up to
      two additional one-year periods at a fee of $90 per month per ITDM for an
      8-bin unit, $75 per month for a 6-bin unit, and $65 per month for a 4-bin
      unit. The Department additionally reserves the right to require repair
      service five (5) or seven (7) days per week at the following rates during
      the initial term or any extensions thereof:

            5 day full service = subtract $7 per month per ITDM
            7 day full service = add $12 per month per ITDM

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<PAGE>   7

      All other optional prices are in accordance with the RFP and subsequent
      correspondence.

      The fee payable to Contractor shall commence on the day of receipt by the
      Department of delivery certification referenced in Paragraph 4.

      Payment of fees pursuant to certification that is received on any day
      other than the first of the month shall be pro-rated for that month in
      which certification is received.

      Payment will be made by wire transfer directly to Contractor's general
      account, as indicated in writing, within 24 hours after the day the
      Department receives written notification from the Contractor of the number
      of ITDM's in operation for the previous month. The written notification
      must list all machines in service for the entire preceding month and
      separately list those machines in service for a portion of the month,
      indicating the number of days in service for the latter.

13.   INSURANCE. Contractor at its expense shall obtain, prior to installation
      of the first ITDM, and maintain until termination of this Agreement (i)
      fire and extended coverage insurance against loss, theft, damage, or
      destruction of the ITDM's, in an amount not less than the Replacement
      Value of the ITDM's; (ii) comprehensive public liability insurance against
      claims for bodily injury, death and/or property damage arising out of the
      use, ownership, possession, operation or condition of the ITDM's; (iii)
      fidelity insurance covering theft of the Revenues by the employee(s) of
      Contractor; and (iv) money and securities insurance covering theft of the
      Revenues by a third party. Insurance provided pursuant to (i) and (ii)
      above shall name Contractor as an insured and loss payee and its
      assignee(s) as an additional insured and loss payee. Insurance provided in
      accordance with sections (iii) and (iv) shall name Contractor and
      Department as an insured and loss payee and Contractors assignee(s) as an
      additional insured and loss payee and shall be payable as their respective
      interests may appear. Each insurance policy shall comply with prudent
      industry practices and shall contain a clause requiring the insurer to
      give the insureds and additional insureds at least one month's prior
      written notice of the cancellation or any alteration in the terms of such
      policy and shall state that all claims thereunder shall be payable to such
      parties irrespective of any breach of warranty or other act of omission of
      Contractor. No insurance shall be subject to any co-insurance clause.
      Each insurance policy shall be with an insurance carrier licensed to
      provide all such insurance in Illinois.

14.   WORK PRODUCT. All documents, including reports and all other

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<PAGE>   8

      work products, produced by the Contractor under this Agreement shall
      become and remain the property of the Department.

15.   APPROPRIATION. Obligations of the Department will cease immediately
      without penalty of further payment being required in any fiscal year the
      Illinois General Assembly fails to appropriate or otherwise make available
      sufficient funds for this Agreement.

16.   DEFINITION OF BREACH AND PROVISION FOR TERMINATION. In the event
      Contractor fails to abide by or comply with any of the terms of this
      Agreement which failure is not cured within fifteen (15) days after
      written notice thereof from the Department; suffers voluntary or
      involuntary dissolution; ceases to do business as an ongoing concern; or
      becomes insolvent or bankrupt (provided that if an involuntary petition in
      bankruptcy is filed against the Contractor, Contractor shall not be
      considered bankrupt unless the petition is not dismissed within 60 days),
      the Department may elect to declare that the Contractor has breached this
      Agreement and may further elect to immediately terminate this Agreement
      and all Contractor's rights therein. Payment may be made for work
      completed which is acceptable to the Department and which can be utilized
      by the Department. All other legal and equitable remedies of the
      Department shall remain in effect.

      In the event the Department fails to abide by or comply with any of the
      terms of this Agreement, which failure is not cured within fifteen (15)
      days after written notice thereof from Contractor, the Contractor may
      elect to declare that the Department has breached this Agreement and may
      further elect to immediately terminate this Agreement and all the
      Department's rights therein upon written notice to the Department. All
      legal and equitable remedies of the Contractor shall remain in effect.

      This Agreement may be terminated for cause by either party upon 60 days'
      notice in writing to the other party.

      Upon termination of this Agreement, the Contractor shall remove the ITDM's
      upon receipt of written notice from the Department. Upon termination,
      either party may pursue all legal and equitable remedies available to such
      party under applicable law.

17.   CHANGE IN OWNERSHIP OR FORM OF BUSINESS. The Department reserves the right
      to approve any sale of a majority (51%) interest in the Contractor. In the
      event Contractor ceases to do business in its existing form, the
      Department shall be entitled to 60 days operation of the ITDM's delivered
      hereunder at the same rates and under the same terms and

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      conditions as set forth herein.

18.   OPTION TO PURCHASE. At the termination of this Agreement (three years),
      the Department shall have the option to purchase any and all ITDM's at a
      rate of $800 per machine. If this Agreement is extended, pursuant to
      Paragraph 1, then at the conclusion of the first extension period the
      Department shall have the option to purchase any and all ITDM's at a rate
      of $400 per machine. If the Agreement is extended a second time, pursuant
      to Paragraph 1, then at the conclusion of the second extension period the
      Department shall have the option to purchase any and all ITDM's at a rate
      of $1 per machine. Department shall notify Contractor, in writing, of its
      intent to exercise its option at least 30 days prior to relevant
      termination date in which case title to ITDM's shall transfer to the
      Department upon receipt of payment pursuant to this paragraph.

19.   RELEASE AND INDEMNITY. Contractor agrees to assume all risk of loss and to
      indemnify and hold the Department, its officers, agents and employees
      harmless from and against any and all liabilities, demands, claims,
      damages, suits, costs, fees, and expenses incident thereto, for injuries
      or death to persons and for loss of, damage to, or destruction of property
      because of Contractor's negligence, intentional acts or omissions. In the
      event of any demand or claim, the Department will notify Contractor in
      writing. The Department may elect to defend any such demand or claim
      against the Department and bill the Contractor for all damages assessed
      against the Department and all reasonable costs and fees incurred by the
      Department in its defense of the claim.

20.   ASSIGNMENT/SUBCONTRACTING. This Agreement shall not be assigned, nor any
      portion of the services subcontracted, without the prior written consent
      by the Department. Contractor hereby declares and the Department consents
      to the following subcontractors in addition to those set forth on
      Attachments B to the Contractor's proposal:

            IGOR, The Watchdog Corp.

      No substitutions of approved subcontractors is permitted without the
      Department's express authorization.

      The Illinois Lottery is committed to the development and utilization of
      minority, female, and disabled-owned businesses. We encourage the use of
      these vendors as subcontractors to this contract.

21.   DELAY. If, in the Department's opinion, performance is delayed by a cause
      beyond the control of the Contractor, then the times for performance may
      be extended, at the Department's

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<PAGE>   10

      option, for a period equivalent to the delay experienced by the
      Contractor, or any period of time deemed reasonable by the Department,
      whichever is shorter. An extension may be granted, after notice and
      explanation in writing, if the Department is satisfied the delay was
      unavoidable, could not have been reasonably anticipated and is not the
      result of any action, inaction, or negligence by the Contractor.

22.   STATUS/DEFINITION OF CONTRACTOR. For the purposes of this Agreement,
      Contractor shall be deemed to be an Independent Contractor and shall in no
      way be considered an employee or agent of the Department. The Contractor
      warrants Contractor is the real party in interest to this Agreement and is
      not acting for or on behalf of an undisclosed principal. Contractor shall
      maintain sufficient supervision and control of its operations to insure
      that all aspects of this Agreement are properly performed.

23.   PROHIBITION FROM PARTICIPATION IN ILLINOIS LOTTERY GAMES. No ticket shall
      be purchased by, and no prize shall be paid to Contractor or any employee
      of Contractor, actually performing services pursuant to this Agreement,
      nor any spouse, child, brother, sister or parent residing as a member of
      the same household in the principal place of residence of such employee.

      Contractor is required to provide notice of this prohibition to all
      employees providing services to the Illinois State Lottery.

24.   FULL AGREEMENT/MODIFICATION. Department and Contractor hereby agree that
      all terms and conditions of this Agreement are fully set forth herein and
      further agree that only those terms and conditions set forth herein
      constitute the final enforceable Agreement between these parties. No terms
      and conditions of this written Agreement can be varied or waived by any
      representations or promise on the part of any party hereto unless such
      modifications be in writing and mutually signed by the duly authorized
      agents of the parties hereto.

25.   PROJECT REPORTS. Contractor shall submit to the Department upon request
      oral or written reports detailing the status of the work to be performed.
      All written reports, including any final comprehensive reports, shall be
      the property of the Department.

26.   TERMINATION OF PRIOR AGREEMENTS. This Agreement cancels and terminates, as
      of its effective date, all prior agreements between the parties hereto
      covering the services and dates herein, whether written or oral or partly
      written and partly oral. This section of this Agreement in no way affects
      any agreement between these same parties for different services or

                                       10
<PAGE>   11

      agreements having a term other than that which is set forth in paragraph 1
      of this Agreement.

27.   WRITTEN NOTICE. All written notices given or sent hereunder shall be
      deposited in the United States mail, proper postage prepaid, addressed to
      the respective party at the address set forth on the signature page
      herein, or to such other addresses as the parties may designate in writing
      from time to time.

28.   ADDRESS FOR BILLING. All Contractor billings pursuant to this Agreement
      shall be addressed as follows: Illinois Department of the Lottery, 201
      East Madison Street, Springfield, Illinois 62702, ATTN: Financial
      Accounting.

29.   NON-DISCRIMINATION. Contractor shall comply with all applicable provisions
      of state and federal constitutions, laws, regulations and judicial orders
      pertaining to nondiscrimination and equal employment opportunity including
      but not limited to:

      a)    the Illinois Human Rights Act, as now or hereafter amended (775 ILCS
            5/1-101 et seq.);

      b)    Section 750, Appendix A of the regulations of the Illinois
            Department of Human Rights, which clause is hereby incorporated by
            reference (44 Ill. Adm. Code 750);

      c)    the Public Works Employment Discrimination Act, as now or hereafter
            amended (775 ILCS 10/0.01 et seq.);

30.   CERTIFICATIONS.

      a)    The Contractor certifies that it is not barred from being awarded a
            contract or subcontract under Section 10.1 or 10.3 of the Illinois
            Purchasing Act (See 30 ILCS 505/10.1 and 10.3), and

      b)    The Contractor certifies that it has not been barred from
            contracting with a unit of State or local government as a result of
            a violation of Section 33E-3 or 33E-4 of the Criminal Code of 1961
            (See 720 ILCS 5/33E-3 and 33E-4), and

      c)    The Contractor certifies that it is not in default on an educational
            loan as provided in Public Act 85-827 (See 5 ILCS 385/1-3) (a
            partnership shall be considered barred if any partner is in default
            on an education loan), and

      d)    The Contractor is not prohibited from selling goods or services to
            the State of Illinois because it pays dues or fees on behalf of its
            employees or agents or subsidizes or otherwise reimburses them for
            payment of their dues or

                                       11
<PAGE>   12

      fees to any club which unlawfully discriminates (See 775 ILCS 25/1-3).

      e)    Under penalties of perjury, I certify that 33-0423037 is my correct
            Federal Taxpayer Identification Number. I am doing business as a
            (please check one):

            |_| Individual                        |_| Real Estate Agent
            |_| Sole Proprietorship               |_| Governmental Entity
            |_| Partnership                       |_| Tax Exempt Organization
            |X| Corporation                            (IRC 501 (a) only)
            |_| Trust or Estate                   |_| Not-for-profit
            |_| Medical and Health Care                 Corporation
                 Services Provider Corporation

      f)    The Contractor certifies that the Contractor will not engage in the
            unlawful manufacture, distribution, dispensation, possession, or use
            of a controlled substance in the performance of the contract.

      g)    The Contractor certifies that the services, programs and activities
            provided under this contract are and will continue to be in
            compliance with the Americans with Disabilities Act (42 U.S.C. 12101
            et seq.) ("ADA") and the regulations promulgated thereunder (28 CFR
            35.130).

31.   APPLICABLE LAW. This Agreement and Contractor's obligations and services
      hereunder are hereby made and must be performed in compliance with all
      applicable federal and state laws. This Agreement shall be construed in
      accordance with the laws of the State of Illinois.

32.   RECORDS. The Contractor shall maintain, for a minimum of 5 years after the
      completion of the contract, adequate books, records and supporting
      documents to verify the amounts, recipients and uses of all disbursements
      of funds passing in conjunction with the contract; the contract and all
      books, records and supporting documents related to the contract shall be
      available for review and audit by the Auditor General or by the
      Department's internal or contractual auditors; and the Contractor agrees
      to cooperate fully with any audit conducted by the Auditor General or by
      the Department's internal or contractual auditors and to provide full
      access to all relevant materials. Failure to maintain the books, records
      and supporting documents required by this Section shall establish a
      presumption in favor of the State for the recovery of any funds paid by
      the State under the contract for which adequate books, records and
      supporting documentation are not available to support their purported
      disbursement.

33.   SEXUAL HARASSMENT. The Contractor shall have written sexual harassment
      policies that shall include, at a minimum, the

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<PAGE>   13

      following information: (i) the illegality of sexual harassment;, (ii) the
      definition of sexual harassment under State law; (iii) a description of
      sexual harassment, utilizing examples; (iv) the vendor's internal
      complaint process including penalties; (v) the legal recourse,
      investigative and complaint process available through the Department of
      Human Rights and the Human Rights Commission; (vi) directions on how to
      contact the Department of Human Rights and the Human Rights Commission;
      and (vii) protection against retaliation as provided by Section 6-101 of
      the Illinois Human Rights Act.

IN WITNESS THEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives.

STATE OF ILLINOIS
DEPARTMENT OF THE LOTTERY                  LOTTERY ENTERPRISES, INC.

By: /s/ Desiree G. Rogers                  By: /s/ Robert L. Burr
   -------------------------------            ---------------------------------
   Desiree G. Rogers                          Authorized Officer/Agent

Address:  201 E. Madison St.               Address:  9190 Activity Road
          Springfield, IL 62702                      San Diego, CA 92126

Date:     July 14, 1994                    Remit: _____________________________
                                                  _____________________________

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