Document:

Exhibit  10.5 

DISTRIBUTOR
AGREEMENT 

 
        This
Agreement is entered into as of January  21, 2005 (the “Effective Date”) by
and among VendingData Corporation, a Nevada corporation (“Vendor”), and
Technical Casino Supplies Ltd, an English company (“Distributor”). 

RECITALS 

 
        WHEREAS,
Vendor is the owner of patents, patents pending, trademarks, and other related
intellectual property involving a full range of shuffling machine products for the casino
industry (collectively, the “Products” and, individually, the
“Product”); 

 
        WHEREAS,
Distributor is in the business of distributing products to the casino industry throughout
the world and is a subsidiary of Victoria Holdings Ltd; and 

 
        WHEREAS,
Vendor desires to grant to Distributor an exclusive right to market, sell, rent, lease,
service and maintain the Products subject to the terms and conditions as set forth herein. 

 
        NOW,
THEREFORE, in consideration of the several and mutual promises, agreements, covenants,
understandings, undertakings, representations and warranties hereinafter set forth the
receipt and sufficiency of which is hereby acknowledged, the parties to this Agreement
agree that the aforementioned recitals are true and correct and by this reference
incorporated herein as if fully set forth and the parties further covenant and agree as
follows: 

	1.  	TERM  

 
        As
provided for in this Section 1, the term of this Agreement shall be for a period of five
(5) years, beginning on the Effective Date (the “Initial Term”); provided,
however, the Initial Term shall be subject to automatic successive renewal terms of three
(3) years each (the “Renewal Terms” and together with the Initial Term, the
“Term”). 

 
        1.1.
Termination. This Agreement may be terminated subject to the following clauses:  

	 	 
        1.1.1.
By either Vendor or Distributor, upon written notice of termination of this Agreement no
later than ninety (90) calendar days prior to the expiration of the relevant Term, then
in  effect;  

	 	 
        1.1.2.
By Vendor and Distributor, at any time, upon the mutual written agreement of Vendor and
Distributor;  

	 	 
        1.1.3.
By either Vendor or Distributor, following a material or continuing breach of this
Agreement (in the case of a breach which is capable of remedy) by the other party and the
breaching party’s failure to cure such breach within ninety (90) days of receiving
written notice of such breach, where a breach shall be considered capable of remedy if
the  party in breach can comply with the provision in question in all respects other than
as to  the time of the performance (provided that the time of performance is not of the
essence);  or  

	 	 
        1.1.4.
Subject to Section 1.6, by Vendor (or successor to Vendor), upon written notice to
Distributor of a change of control of Vendor and the election by Vendor (or successor to
Vendor) to terminate this Agreement, where a “change of control” shall mean a
change in ownership of the Vendor such that an unaffiliated third party acquires a
majority of the voting power of Vendor;  

	 	 
        1.1.5.
Subject to Section 1.6, with respect to any shuffler line, by Vendor, upon written notice
to Distributor of the transfer of ownership of the relevant shuffler line (i.e,,
the PokerOneTM Shuffler, the Random PlusTM Shuffler, the Continuous PlusTM Shuffler
and other future line of shuffler products offered by Vendor) to an unaffiliated  third
party and the election by the unaffiliated third party to terminate this Agreement  with
respect to the relevant shuffler line.  

 
        1.2.
No Responsibility. Upon termination of this Agreement in accordance with the terms
of this Section 1, the terminating party shall not be responsible for any costs or
damages  incurred by the other party resulting from the termination, subject to Section
1.6 of this  Agreement.  

 
        1.3.
Distributor Credit. Except when this Agreement is terminated due to the uncured
breach of Distributor, Distributor shall have within one (1) month of termination of this
Agreement the right to return the Products purchased by Distributor to Vendor provided
that the Products are unopened upon receipt by Vendor. Distributor will receive a credit
for the full price paid by Distributor for the Products. Under such circumstances, Vendor
shall have the right to market and sell such returns to other customers that may be
interested in acquiring the goods referred to herein.  

 
        1.4.
Delivery upon Termination. In the event of termination for whatever reason, Vendor
and Distributor agree to complete the delivery of each order of the Product received by
Distributor and each unfulfilled order for the Product prior to the termination date.  

 
        1.5.
Effect. In the event of the termination of this Agreement for any reason
whatsoever, the exclusive distribution right and license granted to Distributor pursuant
to this Agreement shall automatically revert to Vendor as Vendor’s sole property.  

 
        1.6.
Monthly Compensation. In the event that this Agreement is terminated pursuant to
either Section 1.1.4 or 1.1.5 of this Agreement, this shall not of itself be deemed a
breach hereof but Distributor shall have the right to receive monthly compensation from
Vendor, or successor to the Vendor, representing the amount of profit to Distributor lost
as a result of the termination (the “Monthly Compensation”).  

	 	 
        1.6.1.
Calculation. The amount of the Monthly Compensation shall be determined by taking average
gross profit related to the relevant Products for each of the monthly periods completed
since the beginning of this Agreement, where “gross profit” shall mean the
difference between the revenue generated by Distributor during the relevant period less
any commissions paid by Distributor to third parties and less the Price paid by
Distributor to Vendor for the relevant Products (exclusive of any taxes, charges, fees or
impositions related to sales or delivery).  

	 	 
        1.6.2.
Payment. The Monthly Compensation shall be paid for the remaining monthly periods
remaining in the Term, as if the termination of this Agreement had not occurred, or
twenty  four (24) calendar months, which ever period is less, where payment shall be made
no later  than thirty (30) calendar days after the end of the relevant monthly period.  

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        1.6.3.
Reservation of Rights. For the avoidance of doubt, Distributor’s right to
compensation shall be without prejudice to its rights in respect of any breach by Vendor
of this Agreement.  

	2.  	GRANT
OF  DISTRIBUTION RIGHTS; LICENSE  

 
        In
consideration for the purchase of the Products by Distributor from Vendor, Vendor grants
Distributor the exclusive right to market, sell, rent, lease, service and maintain the
Products and all improvements thereon within the Territory (as defined herein) according
to the terms and conditions as set forth herein. As part of the exclusive distribution
right granted in this Section 2, Vendor hereby grants Distributor the non-exclusive,
non-transferable right to use and display Vendor’s trademarks, logos, Product
photographs and images, Product advertising and promotional copy, including but not
limited to the materials contained in Vendor’s website, in connection with the
promotion, advertising and distribution of the Products. 

 
        2.1.
Definition of “Territory.” For the purposes of this Agreement, the
“Territory” shall mean all countries and territories throughout the world with
the exception of the United States of America, the Caribbean and cruise ships based from
ports within the United States of America or the Caribbean.  

 
        2.2.
Limitations. Notwithstanding any other provision of this Agreement, the
Distributor  specifically agrees that any and all marks, logos, images and copy related
to the Products  are solely the property of Vendor. Distributor agrees not to use in any
manner whatsoever  the marks, logos, images and copy of Vendor following the expiration
or termination of  this Agreement, except as may be needed to sell any Products remaining
in  Distributor’s inventory.  

 
        2.3.
Design and Specification. In its sole discretion and without any liability to
Distributor, Vendor shall have final decision-making power with respect to, from time to
time, alter the design or construction of any Products, add new and additional Products
and discontinue any Products; provided, however, in the event of any such action on
Vendor’s part, Vendor shall give reasonable notice to Distributor.  

 
        2.4.
Prosecution of the Patent Applications. Vendor shall retain full and complete
control over the prosecution of any patent applications and any related disclaimer
proceedings.  

 
        2.5.
Ownership of Future Inventions and Improvements. Any and all future inventions and
improvements related to the Products licensed pursuant to this Agreement shall be the
property of Vendor.  

 
        2.6.
Commission to Vendor For Sales Lead to Distributor. Subject to the mutual
agreement  of Vendor and Distributor, in the event that Vendor provides a new sales lead
to  Distributor that results in the sale of the Products, Distributor shall pay to Vendor
a  commission equal to twenty-five percent (25%) of the gross profit for the Products,
where  gross profit shall mean the difference between the price paid by the customer (where
Distributor will determine the customer price for the Products on a case by case basis)
and the price paid by Distributor for the Products. Sales leads for rental contracts
provided by Vendor to Distributor will be dealt with on a case by case basis by mutual
agreement between Vendor and Distributor. Any repeat orders will be dealt with on a case
by case basis by mutual agreement between Vendor and Distributor.  

-3- 

	 	 
        2.6.1.
Payment. Distributor hereby agrees to provide to Vendor payment of the commission no
later  than thirty (30) calendar days after the receipt of full payment from the
customer.  

	3.  	 OBLIGATIONS
OF DISTRIBUTOR 

 
        In
exchange for the exclusive distribution right and license provided in Section 2 of this
Agreement, Distributor hereby agrees during the Term to use its best commercial efforts to
promote, advertise and distribute the Products throughout the Territory, including,
without limitation, the following: 

 
        3.1.
Distributor will purchase the Products from Vendor in accordance with the parameters set
forth in Sections 5 and 6 of this Agreement;  

 
        3.2.
Distributor will be responsible for all marketing, selling and servicing efforts for the
Products within the Territory;  

 
        3.3.
Distributor shall, in the event of any actual or alleged infringement of the Products
comes to the attention of Distributor, promptly notify Vendor, in writing, of the actual
or alleged infringement;  

 
        3.4.
Distributor shall not obtain, purchase, receive or source any other card shuffling
machine  from any third party or other source under any circumstance other than from
Vendor with  the exception of all Shuffle Master, Inc. shuffling machines which are held
in stock at  the Effective Date which Distributor is free to sell, rent purchase or lease
until all of  the said stock has been depleted.  

 
        3.5.
Distributor shall not sell or otherwise transfer any of the rights granted pursuant to
this Agreement to any third party without the prior written consent of Vendor; provided,
however, Distributor may enter into distribution arrangements with regional distributors
within the Territory in its efforts to promote, advertise and distribute the Products in
accordance with this Agreement;  

 
        3.6.
Distributor shall provide written updates to Vendor at the end of each calendar quarter
of  any distribution arrangements entered into by Distributor as permitted by Section 3.5
of  this Agreement, where said notice shall contain the name and location of the regional
distributor, and a brief statement on the experience and history of the regional
distributor;  

 
        3.7.
Distributor shall not make any modifications to the Products without prior written
consent  of Vendor;  

 
        3.8.
Distributor shall provide to Vendor: (1) monthly sales figures no later than fifteen (15)
calendar days after the end of the relevant monthly period that provides information with
respect to sales for each Product; and (2) a non binding three (3) month forecast on a
quarterly basis;  

 
        3.9.
Distributor shall demonstrate the Products at the following international gaming
exhibitions, ICE (London), G2E (Las Vegas), SAGSE (Buenos Aires), EELEX (Moscow) and AGE
(Sydney), or any successors or equivalents to the aforementioned exhibitions. Distributor
may also demonstrate the products at other gaming exhibitions where Distributor decides
to  exhibit, subject to there being a good business case to do so; and  

 
        3.10.
Distributor shall be responsible for the retention, use and actions of any third parties
used to distribute the Products, including any claims, liabilities or other damages
associated with such third parties.  

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	4.  	 OBLIGATIONS
OF VENDOR 

 
        In
exchange for the marketing and selling of the Products provided in Section 3, Vendor
hereby agrees: 

 
        4.1.
To provide Distributor with the appropriate product brochures, and two (2) fully working
and fit for purpose samples of each model of shuffling machine free of charge;  

 
        4.2.
To prominently display and advertise that Distributor is the sole and exclusive
distributor of Vendor for the Products in the Territory;  

 
        4.3.
Subject to Section 2.6 of this Agreement, not to market, distribute, sell or supply the
Products covered by this Agreement to any individual or entity in the Territory directly
in response to a request from that person or entity without the prior written consent of
Distributor;  

 
        4.4.
Subject to Section 4.5 of this Agreement, for a period of twenty-four (24) months after
the Effective Date, not to develop, manufacture, market, distribute, sell or supply
anywhere in the world to any individual or entity a gaming chip-sorting machine for use
in  a casino; and  

 
        4.5.
Notwithstanding Section 4.4 of this Agreement, use its best commercial efforts to enter
into a separate agreement with Distributor for the manufacture of a gaming chip-sorting
machine or the manufacture of components of a gaming chip-sorting machine for use by the
casino industry, where a condition of the agreement will be that Vendor will not compete
with Distributor in any way in relation to the manufacture, supply, sale and distribution
of gaming chip-sorting machines. It is understood that if Vendor and Distributor fail to
reach an agreement then the twenty-four (24) month restriction detailed in Section 4.4
above will remain in force..  

 
        The
obligation detailed under Section 4.4 above will cease immediately if Distributor fails to
complete its obligations under Section 5.1 below, where such failure is not a result of
any default by Vendor, or if Distributor fails to provide payment for the Products within
one hundred and eighty (180) days after the delivery of the same. 

	5.  	 PURCHASE;
SHIPPING 

          5.1.
  Purchase. In exchange for the exclusive distribution right and license
  granted to Distributor pursuant to this Agreement, during the Term, Distributor
  hereby agrees to purchase the Products from Vendor, where such Products are
  fit for purpose and ready for sale in the Territory, as determined by Distributor,
  as follows: 

	 	 
        5.1.1.
As of the Effective Date, one hundred (100) units of the PokerOneTM Shuffler at a
price of Four Thousand Nine Hundred Dollars ($4,950.00 U.S.) per unit, where Vendor shall
ship the units no later than the end of January 2005;  

	 	 
        5.1.2.
Upon the delivery of two (2) units of the Random PlusTM Shuffler to Distributor and
the expiration of a review period ending thirty (30) calendar days after the receipt of
delivery by Distributor,, where such review by Distributor determines that the Random
PlusTM Shuffler is fit for purpose and ready for commercial sale in the Territory,
one  hundred (100) units of the Random PlusTM Shuffler at a price of Four Thousand
Nine  Hundred Fifty Dollars ($4,950.00 U.S.) per unit, where Vendor shall ship the units
no  later than 30 days after the review period;  

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        5.1.3.
Upon the receipt of any necessary approvals or approval waivers and the expiration of a
review period ending thirty (30) calendar days after the receipt of delivery by
Distributor of two (2) units of the Continuous PlusTM Shuffler, where such review by
Distributor determines that the Continuous PlusTM Shuffler is fit for purpose and
ready for commercial sale in the Territory, one hundred (100) units of the Continuous
PlusTM Shuffler at a price of Five Thousand Nine Hundred Fifty Dollars ($5,950.00
U.S.);  

	 	 
        5.1.4.
Within thirty (30) days of the one (1) year anniversary of the Effective Date, an
additional two hundred (200) units of the Products comprising any mix of the shuffler
products offered by Vendor; and  

	 	 
        5.1.5.
Any additional number of units of the Products as may be submitted by Distributor to
Vendor pursuant to a Purchase Order (as defined herein).  

          5.2.
  Purchase Order. Unless otherwise provided for in this Agreement, all
  orders for the purchase of the Products shall be made through the submission
  of a purchase order (a “Purchase Order”), where such Purchase Order
  shall set forth: (1) the relevant monthly period to which the Purchase Order
  relates; (2) the Products to be ordered; (3) the quantity of the Products ordered;
  (4) the relevant price for the Products ordered; (5) the requested shipping
  date and destination of the Products ordered; (6) the Purchase Order number;
  and (7) the name and authorized signature of Distributor. 

          5.3.
  Shipping. Unless otherwise provided for in this Agreement, upon the acceptance
  of a Purchase Order by Vendor, Vendor shall, in the normal course of business,
  package, crate and insure the Products at its cost (including any applicable
  export duties and export taxes) and deliver the Products to Distributor F.O.B.
  Zhongshan City, China. Vendor will advise Distributor immediately of any delay
  but will use all reasonable means to dispatch the Products within four (4) weeks
  of an order being received. Vendor shall as soon as practicable inform Distributor
  of the delivery date for each quantity of Products shipped to Distributor or
  to an address nominated by Distributor. 

          5.4.
  Partial Shipments; Pro Rata Allocation. Vendor reserves the right to
  supply against a Purchase Order by making partial shipments of the Products.
  In the event that Vendor is forced to allocate the distribution of the Products
  due to limited supply, Distributor shall be treated no less favorably than any
  other distributor and shall receive its pro rata allocation of the Products.
  

          5.5.
  Failure to Purchase. If Distributor fails to purchase or complete the
  purchase of the Products (or the payment thereof) in the quantities and the
  times specified in Section 5.1 of this Agreement, Vendor shall have the right
  to convert this Agreement from an exclusive grant of distribution rights to
  a non-exclusive grant of distribution rights by providing written notice to
  Distributor within fourteen (14) days of any date by which Distributor was obliged
  to purchase the specified quantity of Products as set in Section 5.1 of this
  Agreement. Upon providing notice to Distributor pursuant to this Section 5.5,
  Distributor shall no longer be required to purchase balance of the Products
  required to be purchased pursuant to Section 5.1 of this Agreement. Distributor
  shall not be liable for any losses or damages incurred by Vendor as a result
  of Distributor’s failure to meet its obligations under Section 5.1 of this
  Agreement. 

	6.  	 PRICE;
PAYMENT 

          6.1.
  Price Changes. The prices stated in Section 5.1 of this Agreement are
  subject to change. For any price change to take effect ninety (90) days notice
  must be given in order for the price change to apply; provided, however, the
  proposed price change must also apply to the Products for sale by Vendor outside
  the Territory. In the event that there is a price change required by Vendor
  that does not fall within the ninety (90) day notice period, both parties agree
  to discuss the nature of the increase in order to reach a mutually acceptable
  understanding. All the aforementioned price changes will not exceed, on a percentage
  term basis, any increase in the US retail selling price. 

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          6.2.
  Payment. Distributor agrees that all payments to Vendor for the Products
  shall be made by wire transfer in United States Dollars (U.S.$); provided, further,
  

	 	 
        6.2.1.
For all Products to be delivered by Vendor directly to Distributor, the Price shall be
paid by Distributor to Vendor within the earlier of: (1) one hundred eighty (180)
calendar  days from the date of delivery; or (2) thirty (30) calendar days after the sale
or rental  of the relevant Products by Distributor; and  

	 	 
        6.2.2.
For all Products to be delivered by Vendor directly to a third party purchaser of
Distributor (as instructed pursuant to the relevant Purchase Order), the Price shall be
paid by Distributor to Vendor within forty-five (45) days of Distributor’s sale of
the Products to the third party purchaser.  

          6.3.
  Notice of Discount Structure and Promotions. Vendor and Distributor each
  agree to provide the other party with written notice of its intent to offer
  a discount structure, rebate program or other promotion with respect to the
  sale of the Products, including the relevant time frame applicable to such discount
  structure, rebate program or promotion. 

	7.  	 MARKETING
MATERIALS 

          7.1.
  Development of Marketing Materials. Vendor and Distributor hereby agree
  to share marketing materials that are developed by either party for the Products
  covered by this Agreement, including, without limitation, any information, marketing
  or promotional materials for the Products, where, upon request, such marketing
  materials shall be delivered to the other party in hard copy and digital form,
  if available. Upon receipt of such marketing materials, the party may, in its
  sole discretion, elect to reject, use or modify such marketing materials. 

          7.2.
  Prior Approval of Product Claims. Distributor hereby agrees to obtain
  the prior written consent of Vendor prior to the use of any product claims with
  respect to the Products in its marketing materials. 

          7.3.
  Cost Sharing. With respect to cost-intensive promotional materials, such
  as video productions, infomercials and website development and maintenance,
  Vendor and Distributor hereby agree to share equally in the cost and expenses
  related to the development and preparation of such promotional materials; provided,
  however, any and all expenditures related to the development and preparation
  of such promotional materials shall be approved in advance by Vendor and Distributor.
  

	8.  	 PRODUCT
RETURNS 

          8.1.
  Procedure. Distributor may return Products to Vendor for credit or full
  reimbursement, as the case may be, only pursuant to this Section 8.

          8.2
  Updated Products. Distributor may return to Vendor for credit against future
  purchases any Products for which a new version or upgrade has been produced
  and offered for sale; provided, however, the new version or upgrade must be
  of a material nature whereby the existing Products held by Distributor are considered
  obsolete. All Products must be returned undamaged, and all shipping charges
  

-7- 

shall be paid by
Distributor. This clause does not apply to any Products that have been in
Distributor’s inventory for more that one hundred and eighty (180) calendar days.

          8.3.
  Damaged Products. Promptly upon the receipt of a shipment of Products,
  Distributor shall inspect the Products for damage or shortage. Within ten (10)
  calendar days of receipt of the shipment, Distributor shall notify Vendor of
  any damage or shortage. As soon as commercially practical after receipt of notice,
  Vendor shall make complete any shipment in short supply. Any Products damaged
  in shipment shall be returned to Vendor along with documentation of the damage
  within thirty (30) calendar days of receipt by Distributor, and Vendor will
  reimburse Distributor for the costs of freight reasonably incurred by Distributor
  in returning the Products to Vendor. If Vendor finds any Products returned for
  damage to not be damaged, Distributor shall be subject to a restocking fee equal
  to fifteen percent (15%) original purchase price of the non-damaged Products.
  

          8.4.
  Defective Products. Distributor may, no later than one hundred and twenty
  (120) calendar days after a Product is sold by Distributor to a customer, return
  to Vendor, at Distributor’s expense, any Product received by Distributor
  from Vendor during the 120-day period prior to such return, which Distributor
  or its customer believes to be defective. In the event that such Product is
  defective, i.e., the failure of a Product to operate in accordance with
  its published specifications, Vendor shall: 

	 	 
        8.4.1.
Reimburse Distributor for the costs of freight reasonably incurred by Distributor in
returning the Product to Vendor; and  

	 	 
        8.4.2.
Issue Distributor a credit against future purchases in an amount equal to the purchase
price paid by Distributor for the Product or, as requested by Distributor, full
reimbursement for the defective Products.  

	9.  	 PRODUCT
TESTING AND RESULTS 

 
        Whereas
Vendor has organized and received the results from product testing with respect to the
Products, Vendor hereby agrees to make available to Distributor the results of such
product testing and grants to Distributor the right to use such results in its promotional
materials; provided, however, Distributor may only use such results if Distributor
complies with the applicable terms of use as provided by the institution, organization or
other person that organized and conducted the relevant product testing. Conversely, in the
event that Distributor organizes and receives the results from product testing with
respect to the Products, Distributor hereby agrees to make available to Vendor the results
of such product testing and grants to Vendor the right to use such results in its
promotional materials. 

	10.  	 REPRESENTATIONS
AND WARRANTIES OF VENDOR 

 
        Vendor
represents and warrants to Distributor as follows: 

 
        10.1.
Existence. Vendor is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada.  

 
        10.2.
Authorization; Binding Agreement. This Agreement constitutes valid and legally
binding obligations of Vendor, enforceable in accordance with its terms, except, in each
case, as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or other laws relating to or affecting the enforcement of
creditors’ rights generally in effect from time to time and by general principles of
equity. Vendor has full corporate power and authority to enter into this Agreement.  

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        10.3.
Product Warranty. Vendor warrants to Distributor that the Products shall perform
without manufacturing failure and are fit for purpose. Distributor, in cooperation with
Vendor will remedy any defect in the Product in accordance with Section 8.  

 
        10.4.
Spare Products and Parts. Vendor will provide an initial supply of spare Products
and parts as Distributor may reasonably required in accordance with Sections 8 and 10.3
to  permit Distributor to offer a six-month warranty on the Products to customers and to
enable Distributor to provide a warranty service to customers. The initial spare Products
and parts to be provided pursuant to this Section 10.4 shall be at no additional charge
to  the Distributor; provided, however, any additional Products and parts unrelated to
this  Section 10.4 shall be purchased by Distributor.  

 
        10.5.
Litigation. Other than as disclosed in Vendor’s filings made with the United
States Securities and Exchange Commission, including without limitation the legal
proceedings involving Shuffle Master, Inc., Vendor is not aware of any action,
arbitration, suit, proceeding or investigation pending, or to the knowledge of Vendor,
threatened against Vendor, that would have a material adverse effect on its ability to
perform the terms of this Agreement.  

	11.  	REPRESENTATIONS
AND WARRANTIES OF DISTRIBUTOR  

 
        Distributor
represents and warrants to Vendor as follows: 

 
        11.1.
Existence. Distributor is a company duly organized, validly existing and in good
standing under the laws of England.  

 
        11.2.
Authorization; Binding Agreement. This Agreement constitutes valid and legally
binding obligations of Distributor, enforceable in accordance with its terms, except, in
each case, as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or other laws relating to or affecting the enforcement of
creditors’ rights generally in effect from time to time and by general principles of
equity. Distributor has full corporate power and authority to enter into this Agreement.  

 
        11.3.
Litigation. Other than the legal proceedings involving Shuffle Master Inc,
Distributor is not aware of any action, arbitration, suit, proceeding or investigation
pending, or to the knowledge of Distributor, threatened against Distributor that would
have a material adverse effect on its ability to perform the terms of this Agreement.  

	12.  	LIMITATION
OF  WARRANTIES  

 
        Vendor
warrants that all Products are new and that, to its knowledge, all Vendor-supplied
promotional materials comply in all respects with all applicable laws, rules and
regulations. Although Vendor intends to provide a six-month limited warranty to the end
user, Distributor shall make no warranties or representations with respect to the Products
on behalf of Vendor. Distributor shall defend, indemnify and hold Vendor harmless from any
and all claims, damages, costs or expenses, including attorney fees, incurred by Vendor in
relation to any violation by Distributor of the foregoing sentence. 

	13.  	INDEMNIFICATIONS  

 
        Each
party shall  indemnify and hold harmless the other party, its affiliated companies, and
its employees,  officers, directors, attorneys, and agents and each of them, against any
and all claims,  liabilities, damages and costs, including reasonable attorneys’ fees
and settlement  amounts, that the foregoing, or any of them, may incur by reason of any
material breach of  this Agreement. 

-9- 

 
        Vendor
shall indemnify and hold harmless Distributor, its affiliated companies, and its
employees, officers, directors, attorneys, and agents and each of them, against any and
all claims, liabilities, damages and costs, including reasonable attorneys’ fees and
settlement amounts, incurred by any claims of product liability, or any claims arising
from any actual or alleged infringement of any patent, copyright, trademark or other
intellectual property right by a Product supplied by Vendor pursuant to this Agreement. 

 
        Each
party’s responsibilities under this Section 13 shall survive termination of this
Agreement. 

	14.  	COVENANT
TO  PROTECT CONFIDENTIAL INFORMATION  

 
        14.1.
Definition. “Confidential Information” means any proprietary, non-public
information relating to Vendor and the Products, including, without limitation, any and
all strategic or business plans, customer lists and information relating to customers,
marketing plans and strategies, unique software and databases, lists of material
providers  of services and products, terms and provisions of existing contracts and
agreements,  details of negotiations with current partners and business associates,
details of business  opportunities or projects, information relating to financial
statements, employees,  manufacturing and servicing methods, equipment, programs,
strategies, analyses, profit  margins, or other proprietary, non-public information used
by Vendor; provided, however,  that Confidential Information shall not include any
information that: (1) was publicly  known and made generally available after disclosure
by Vendor; (2) becomes publicly  known and made generally available through no
wrongful action or inaction of Distributor;  (3) is already in the possession of
Distributor at the time of disclosure, without  confidentiality restrictions, as shown by
Distributor’s file and records immediately  prior to the time of disclosure; (4) is
obtained by Distributor without breach of  Distributor’s obligations of
confidentiality; or (5) is independently developed by  Distributor without use of or
reference to the Confidential Information, as shown by  documents and other competent
evidence in Distributor’s possession.  

 
        14.2.
Non-Use and Non-Disclosure. Distributor shall not, during the Term or anytime
thereafter, without the express prior written consent of Vendor, use, divulge, publish or
otherwise disclose to any other person any Confidential Information regarding Vendor,
except as provided for in this Agreement or if required to do so pursuant to the order of
a court having jurisdiction over the subject matter or a summons, subpoena or order in
the  nature thereof of any legislative body (including any committee thereof and any
litigation  or dispute resolution method against Vendor related to or arising out of this
Agreement)  or any governmental or administrative agency. In the event that Distributor
or its  directors, officers, employees, consultants or agents are requested or required
by legal  process to disclose any of the Confidential Information, Distributor shall give
prompt  notice so that Vendor may seek a protective order or other appropriate relief. In
the  event that such protective order is not obtained, Distributor shall disclose only
that  portion of the Confidential Information which its counsel advises that it is
legally  required to disclose.  

 
        14.3.
Maintenance of Confidentiality. Distributor agrees that it shall take all
commercially reasonable measures to protect the secrecy of and avoid disclosure and
unauthorized use of the Confidential Information. Without limiting the foregoing,
Distributor shall take at least those measures that it takes to protect its own most
highly confidential information and shall ensure that its employees who have access to
Confidential Information have signed a non-use and non-disclosure agreement in content
similar to the provisions hereof, prior to any disclosure of Confidential Information to
such employees. Distributor shall not make any copies of the Confidential Information
unless the same is previously approved in writing by Vendor.  

-10- 

 
        14.4.
Return of Materials. All documents and other tangible objects containing or
representing Confidential Information which have been disclosed by Vendor to Distributor,
and all copies thereof which are in the possession of Distributor, shall be and remain
the  property of Vendor and shall be promptly returned to Vendor upon Vendor’s
written  request.  

 
        14.5.
Non-Solicitation by Distributor. Distributor agrees that, without the prior
written  consent of the Vendor, for a period beginning from the date of this Agreement
and ending  three (3) years after the termination of this Agreement, neither Distributor
nor any of  its affiliates or representatives will: (1) employ or solicit to employ any
of the  employees of Vendor; or (2) encourage of the employees of the Vendor or its
subsidiaries  to leave the employment of Vendor; provided, however, this Section shall
not apply to any  such employee who has been terminated by or left the employment of
Vendor prior to the  Effective Date or, if employed by Vendor as of the Effective Date,
any employee who has  not been employed by Vendor for at least one (1) year after the end
of such employment.  

 
        14.6.
Non-Solicitation by Vendor. Vendor agrees that, without the prior written consent
of the Distributor, for a period beginning from the date of this Agreement and ending
three (3) years after the termination of this Agreement, neither Vendor nor any of its
affiliates or representatives will: (1) employ or solicit to employ any of the employees
of Distributor; or (2) encourage of the employees of the Distributor or its subsidiaries
to leave the employment of Distributor; provided, however, this Section shall not apply
to  any such employee who has been terminated by or left the employment of Distributor
prior  to the Effective Date or, if employed by Distributor as of the Effective Date, any
employee who has not been employed by Distributor for at least one (1) year after the end
of such employment.  

 
        14.7.
Remedies. Each party agrees that any violation of this Section 14 may cause
irreparable injury to the other party, entitling the other party to seek injunctive
relief  in addition to all legal remedies. Nothing herein contained is intended to waive
or  diminish any rights the other party may have at law or in equity at any time to
protect  and defend its legitimate property interests (including its business
relationship with  third parties), the foregoing provisions being intended to be in
addition to and not in  derogation or limitation of any other rights the other party may
have at law or equity.  

	15.  	OUTSIDE
EVENTS  

 
        15.1.
Delay or Non-Performance. No party shall be liable to the other for delay in
performance, or the non-performance, of any of its obligations under this Agreement to
the  extent that such delay or non-performance is due to any cause beyond the party’s
control, provided that:  

	 	 
        15.1.1.
the party affected shall forthwith notify the other parties thereof; and:  

	 	 
        15.1.2.
if  the circumstances in question prevail for a continuous period in excess of two (2)
calendar months, the parties shall enter into bona fide discussions with a view to
alleviating the effects thereof or to agreeing upon such alternative arrangements as may
be fair and reasonable in all the circumstances.  

          15.2
  Vendor Supply Limitation. Vendor shall not be responsible or liable for
  any loss, damage, detention or delay caused by fire, strike, civil or military
  authority, governmental restrictions or controls, insurrection or riot, railroad,
  act of terrorism, marine or air embargoes, lockout, tempest, accident, breakdown
  of machinery, yield problems, delay in delivery of materials by other parties,
  or any cause which is unavoidable or beyond its reasonable control, nor, in
  any event, for consequential damages. 

-11- 

	16.  	LIMITATION
OF  LIABILITY  

 
        Neither
party shall be liable to the other for lost profits or indirect, special consequential or
punitive damages of any kind arising in connection with the manufacture, sale and
distribution of the products, even if such party has been advised of the possibility of
such damages. 

	17.  	FURTHER
ASSURANCES  

 
        The
parties further covenant and agree to do, execute and deliver, or cause to be done,
executed and delivered, and covenant and agree to use their best efforts to cause their
successors and assigns to do, execute and deliver, or cause to be done, executed and
delivered, all such further acts, transfers and assurances, for implementing the intention
of the parties under this Agreement, as the parties reasonably shall request. The parties
agree to execute any additional instruments or agreements necessary to affect the intent
of this Agreement. 

	18.  	RELATIONSHIP
OF  THE PARTIES  

 
        This
Agreement shall not create any joint venture or partnership between the parties. Nothing
contained in this Agreement shall confer upon either party any proprietary interest in, or
subject a party to any liability for or in respect of the business, assets, profits,
losses or obligations of the other. Nothing herein contained shall be read or construed so
as to make the parties a partnership, nor shall anything contained herein be read or
construed in any way to restrict the freedom of either party to conduct any business or
activity whatsoever without any accountability to the other party. Neither party shall be
considered to be an agent or representative of the other party or have any authority or
power to act for or undertake any obligation on behalf of the other party except as
expressly authorized by the other party in writing. Any such unauthorized representation
or action shall be considered a breach of this Agreement. 

	19.  	ENTIRE
AGREEMENT  

 
        This
Agreement constitutes the entire agreement between the Parties and supersedes any prior
communications, representations or agreements of any kind, whether oral or written;
provided, however, notwithstanding this Agreement, that certain Distribution Agreement by
and between Vendor and TCS Aces Pty Limited dated September 19, 2004 shall remain in full
force and effect. 

	20.  	COUNTERPARTS  

 
        This
Agreement may be executed in counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one
and the same instrument. 

	21.  	MODIFICATION  

 
        This
Agreement may not be modified or rescinded except by express written agreement signed by
both of the Parties. 

	22.  	CONFLICTS  

 
        If
any term included in an invoice, purchase order, packing slip, or bill of lading
contradicts or is otherwise at odds with any provision of this Agreement, the provisions
of this Agreement shall prevail. 

-12- 

	23.  	 JURISDICTION 

 
        Disputes
under this Agreement shall be resolved through arbitration in Ontario, Canada by a single
arbitrator to be appointed by agreement of the parties, or in default, by the President of
the Law Society/Bar of Canada. The laws of Ontario, Canada shall govern the conduct of the
arbitration and any appeal from the decision of the arbitrator. 

	24.  	WAIVER  

 
        Neither
the inspection by Distributor, nor any payment for or acceptance of all or any part of the
Products specified in this Agreement, nor any extension of time, nor any possession taken
by Distributor or Distributor’s employees, shall operate as a waiver of any provision
of this Agreement, or any power in this Agreement reserved to Distributor, or any rights
or damages provided for in this Agreement, nor shall any waiver of any breach in this
Agreement be held to be a waiver of any other or subsequent breach. 

	25.  	ASSIGNMENT
OR  DELEGATION  

 
        No
assignment by either Party of any rights, including rights to money due or to become due
under this Agreement, or delegation of any duties under this Agreement or under any
purchase orders subject to this Agreement, shall be binding on the nonassigning Party
unless and until a written consent has been obtained from the nonassigning Party. 

	26.  	SEVERABILITY  

 
        Any
term or provision of this Agreement that is invalid or unenforceable in any jurisdiction
shall be ineffective only to the extent of such invalidity or unenforceability and only as
to such jurisdiction without rendering invalid or unenforceable the remaining terms and
provisions of this Agreement or affecting the validity or enforceability of any of these
terms or provisions in any other jurisdiction. 

	27.  	GOVERNING
LAW  

 
        This
Agreement shall  be governed by, construed in accordance with the laws of Ontario, Canada. 

-13- 

	28.  	NOTICES  

 
        Any
notice, request, instruction, or other document required by the terms of this Agreement,
or deemed by any of the parties hereto to be desirable, to be given to any other party
hereto shall be in writing and shall be given by personal delivery, overnight delivery,
facsimile (with confirmation of transmission) or mailed by registered or certified mail,
postage prepaid, with return receipt requested, to the addresses of the Parties as
follows: 

		If to Distributor:	Technical Casino Supplies Ltd
Unit 9, Mulberry Business Centre,
Quebec May, Rotherhithe, London, SE167LE
Telephone: _____-_____-_____
Facsimile: _____-_____-_____
Attn: _____________
	 
		With a copy to:	_________________
_________________
_________________
Telephone: _____-_____-_____
Facsimile: _____-_____-_____
Attn: ______________, Esq.
	 
		If to Vendor:	VendingData Corporation
6830 Spencer Street
Las Vegas, Nevada 89119
Telephone: 702.733.7195
Facsimile: 702.733.7197
Attn: Steven J. Blad, President and CEO
	 
		With a copy to:	Kummer Kaempfer Bonner & Renshaw
3800 Howard Hughes Parkway, Seventh Floor
Las Vegas, Nevada 89109
Telephone: 702.792.7000
Facsimile: 702.796.7181
Attn: Michael J. Bonner, Esq.

-14- 

The persons and
addresses set forth above may be changed from time to time by a notice sent as aforesaid.
If notice is given by personal delivery or overnight delivery in accordance with the
provisions of this Section, said notice shall be conclusively deemed given at the time of
such delivery provided a receipt is obtained from the recipient. If notice is given by
mail in accordance with the provisions of this Section, such notice shall be conclusively
deemed given upon receipt and delivery or refusal.

 
        The
Parties acknowledge that they have read this Agreement, understand it, and agree to be
bound by its terms. 

	 	VENDOR:  

	 	VENDINGDATA
CORPORATION,
     a Nevada corporation 

	 	By:  	 /s/
Steven J. Blad   

	 	
Its:	Steven
J. Blad
CEO  

	 	DISTRIBUTOR:  

	 	TECHNICAL
CASINO SUPPLIES LTD,
     an English company

	 	By:  	 /s/
David K. Heap   

	 	
Its:	David
K. Heap
Chief Executive Officer  

-15-EXHIBIT 10.1 

GEVITY HR 
600 301 Blvd. W.,
P.O. Drawer 25020

Bradenton, FL 34206
(941) 748-4540

Date: _________ 

Dear:________________ 

Pursuant to the terms and conditions
of the company’s 1997 Stock Incentive Plan (the ‘Plan’), you have been granted a Non-Qualified Option to purchase
 ________shares (the
‘Option’) of common stock as outlined below. 

Granted To:________________________________________ 

Grant Date:________________________________________ 

Options Granted:___________________________________ 

Exercise Price per Share:___________________________________        Total Cost to Exercise:______________

Expiration Date:__________________________________________ 

 
        The
Option Shares shall become vested in accordance with the following Vesting Schedule. All
or a portion of the Option Shares may become vested on an earlier date as provided in the
attached Terms and Conditions. Options cease to vest upon termination of employment.  

         Vesting
Schedule: _____________________

        Option Period: Vested
Options may be exercised on or before the last day of employment and for up to 90 days
following termination of employment, unless termination is for cause or due to Death or
Disability, but no later than the expiration date of the Option. If termination of
employment is due to Death or Disability, vested options may be exercised for up to 12
months after the optionee ceased to be an employee of the Company or Subsidiary. See attached
Terms and Conditions for other limitations that may apply to exercising the Option.  

        By
my signature below, I hereby acknowledge receipt of the Options granted on the date shown
above, which has been issued to me under the terms and conditions of the Plan. I further
acknowledge receipt of the copy of the Plan and agree to conform to all of the terms and conditions of the Option and the Plan. 

  Signature:  ____________________________    Date:  ________________

Keep the optionee statement and one copy of the award letter for your records.
Please sign the extra copy of the award letter and return it to the Corporate Controller

Note: If there are
any discrepancies in the name or address shown above, please 
make the appropriate
corrections on this form.

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