Document:

Exhibit 10.3

 

FIRST
AMENDMENT TO EMPLOYMENT AGREEMENT
OF                                        

 

This FIRST
AMENDMENT TO EMPLOYMENT AGREEMENT OF
                                 
(the “First Amendment”) is entered into this
             day of
June, 2003 (the “Effective Date”), by and between VendingData Corporation, a
Nevada corporation (the “Company”) and
                                
(the “Employee”).

 

WHEREAS, the
parties entered into an Employment Agreement dated
                              
(the “Agreement”); and

 

WHEREAS, as of
the date of the Agreement, the Employee was the
                                          ;
and

 

WHEREAS, since
the date of the Agreement, the Employee’s title with the Company has been
changed from
                                                                  ;
and

 

WHEREAS, the
parties desire that the Employee remain in the Company’s employ as its
                                                                                     
for a period beyond the term of the Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:

 

1.                                       Acceleration
of Stock Option Grant.  The stock
options reflected in Section 5.1(b)(iii) of the Agreement are hereby
granted as of the Effective Date of this First Amendment and shall vest on the
second year anniversary of the Agreement.

 

2.                                       The
First Extended Term.  The term of
the Agreement is hereby extended from
                                        ,
2003 through and including
                                          ,
2006 (the “First Extended Term”).

 

3.                                       Grant
of Stock Options.  In consideration
of the Employee’s agreement to remain in the employ of the Company as its
                                                           
through the First Extended Term, as of the Effective Date, the Company hereby
grants to Employee stock options to purchase                             
(             )
shares (the “Shares”) of the Company’s common stock at two dollars and fifty
cents ($2.50) per share.  The stock
options shall vest as follows:

 

(a)          On
                              ,
2004 and provided that the Employee is still employed with the Company, stock
options to purchase
                                 
(             )
Shares shall vest.

 

(b)         On
                              ,
2005 and provided that the Employee is still employed with the Company, stock
options to purchase
                                 
(             )
Shares shall vest.

 

 

(c)          On
                              ,
2006 and provided that the Employee is still employed with the Company, stock
options to purchase                                 
(             )
Shares shall vest.

 

4.                                       Base
Salary.  During the Extended Term,
the Employee’s base salary shall be not less than
                                 
($                              ).

 

5.                                       No
Further Modifications.  Except as
modified herein, the terms of the Agreement remain in full force and effect.

 

IN WITNESS
WHEREOF, the parties have executed this First Amendment as of the date and year
first above written.

 

	
  VendingData
  Corporation

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Steven J.
  Blad

  
	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Employee]

  

 

2Exhibit
10.4

 

SECOND
AMENDMENT TO EMPLOYMENT AGREEMENT

OF STEVEN J. BLAD

 

This Second Amendment to Employment Agreement of Steven J. Blad
(the “Second Amendment”) is entered into this 18th day of June, 2003
(the “Effective Date”), by and between VendingData Corporation, a Nevada
corporation (the “Company”) and Steven J. Blad (the “Employee”).

 

Whereas, the parties entered into an Employment Agreement of
Steven J. Blad dated August 10, 1999, which became effective on
January 1, 2000 (the “Agreement”); and

 

Whereas, the parties entered into a First Amendment to
Employment Agreement of Steven J. Blad dated November 20, 2001 (the
“First Amendment”); and

 

Whereas, the First Amendment extended the duration of the
Employee’s employment with the Company through and including December 31,
2004 (the “First Extended Term”); and

 

Whereas, the parties desire that the Employee remain in the
Company’s employ as its President and Chief Executive Officer for a period
beyond the First Extended Term.

 

Now, Therefore, for good and valuable consideration, the
receipt of which is hereby acknowledged, the parties agree as follows:

 

1.                                       The
Second Extended Term.  The term of
the Agreement, as extended by the First Extended Term, is hereby further
extended through and including December 31, 2009 (the “Second Extended
Term”).

 

2.                                       Related
Products.  Employee acknowledges his
obligations not to compete with the Company, as set forth in Section 7 of
the Agreement.  In addition to the
limitations placed upon Employee by Section 7 of the Agreement, Employee
agrees to present to the Company, for its use and benefit, any gaming,
gaming-related or vending machine-related products and/or product ideas of
which Employee may become aware during the term of the First Extended Term or
the Second Extended Term.  Such products
and/or product ideas include, but are not limited to, chip washing machines,
table game management systems, and vending machine monitoring systems.

 

3.                                       Grant
of Stock Options.  In consideration
of the Employee’s agreement to remain in the employ of the Company as its
President and Chief Executive Officer through the Second Extended Term, as of
the Effective Date, the company hereby grants to Employee stock options to
purchase Five Hundred Thousand (500,000) shares (the “Shares”) of the Company’s
common stock at Two Dollars and Fifty Cents ($2.50) per share.  The stock options shall vest as follows:

 

 

(a)                                  On
the Effective Date, stock options to purchase One Hundred Thousand (100,000)
Shares shall vest.

 

(b)                                 On
December 31, 2005, and provided that the Employee is still employed with
the Company, stock options to purchase Eighty Thousand (80,000) Shares shall
vest.

 

(c)                                  On
December 31, 2006, and provided that the Employee is still employed with
the Company, stock options to purchase Eighty Thousand (80,000) Shares shall
vest.

 

(d)                                 On
December 31, 2007, and provided that the Employee is still employed with
the Company, stock options to purchase Eighty Thousand (80,000) Shares shall
vest.

 

(e)                                  On
December 31, 2008, and provided that the Employee is still employed with
the Company, stock options to purchase Eighty Thousand (80,000) Shares shall
vest.

 

(f)                                    On
December 31, 2009, and provided that the Employee is still employed with
the Company, stock options to purchase Eighty Thousand (80,000) Shares shall
vest.

 

4.                                       Base
Salary.  During the Second Extended
Term, the Employee’s base salary shall be no less than Two Hundred Eighty-Two
Thousand Dollars ($282,000.00).

 

5.                                       No
Further Modifications.  Except as
modified herein, the terms of the Agreement and First Amendment remain in full
force and effect.

 

In Witness Whereof, the parties have executed this Second
Amendment as of the date and year first above written.

 

	
  VENDINGDATA CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ JAMES E. CRABBE

  	
   

  
	
   

  	
  James
  E. Crabbe

  	
   

  
	
   

  	
  Chairman
  of the Board

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ STEVEN J. BLAD

  	
   

  
	
   

  	
  Steven
  J. Blad

  	
   

  

 

2Exhibit
10.5

 

THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE
OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY APPLICABLE STATE SECURITIES LAW.  THIS WARRANT OR SUCH SHARES MAY NOT BE SOLD, DISTRIBUTED, PLEDGED,
OFFERED FOR SALE, ASSIGNED, TRANSFERRED, OR OTHERWISE DISPOSED OF UNLESS: (A)
THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAW COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES;
(B) THE COMPANY (DEFINED BELOW) RECIEVES AN OPINION OF LEGAL COUNSEL FOR THE
HOLDER OF THIS WARRANT STATING THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION AND SUCH OPINION IS IN FORM AND SUBSTANCE REASONABLY SATISFACTORY
TO THE COMPANY; OR (C) PURSUANT TO RULE 144 UNDER SUCH ACT.

 

WARRANT
TO PURCHASE

SHARES
OF COMMON STOCK

 

 

VENDINGDATA
CORPORATION

 

THIS IS TO CERTIFY
THAT, for value received, Philiadelphia Brokerage Corporation (the “Holder”) is
entitled, during a specified period of time as set forth in Section 3 herein
(the “Exercise Period”), to purchase from VendingData Corporation, a Nevada
corporation (the “Company”), up to Twenty-Five Thousand (25,000), fully paid
and nonassessable shares of the Company’s common stock, par value $0.001 per
share (the “Common Stock”), at an exercise price per share as set forth in
Section 1 herein (the “Exercise Price”). 
The Warrant Shares shall be vested as of the date of this Warrant.  The term “Warrant,” as used herein, refers
to this Warrant to Purchase Shares of Common Stock, the term “Warrant Shares,”
as used herein, refers to the shares of Common Stock purchasable hereunder, and
the term “Parties,” as used herein, refers collectively to the Holder and the
Company.

 

TERMS
AND CONDITIONS

 

This Warrant is subject
to the following terms, provisions, and conditions:

 

1.             Exercise Price.  The Exercise Price shall be $2.25 per share.

 

2.             Manner of Exercise; Issuance of Certificates; Payment
for Shares.  Subject to the
provisions hereof, this Warrant may be exercised by the Holder, in whole or in
part (but in not less than 1,000 share increments), by the surrender of this
Warrant, together with an exercise agreement in the form attached hereto (the
“Exercise Agreement”), duly completed and executed by the Holder, to the
Company during normal business hours on any business day at the Company’s
principal executive offices (or such other location as the Company may
designate by notice to the Holder); and upon (a) the payment to the Company in
cash, by certified or official bank check or by wire transfer for the account
of the Company in the amount of the Exercise Price multiplied by the number of
Warrant Shares for which the Warrant is being exercised.

 

In addition to the method of payment set forth above
and in lieu of any cash payment required thereunder, the Holder(s) of the
Warrants shall have the right at any time and from time to time

 

 

to exercise the Warrants in whole or in part by surrendering the
Warrant in the manner specified above in exchange for that number of shares of
Common Stock equal to the product of (x) the number of shares as to which such
Warrants are being exercised multiplied by (y) a fraction, the numerator of
which is the market price of the Common Stock less the Exercise Price and the
denominator of which is such market price. 
Solely for the purposes of this paragraph, market price shall be
calculated either (i) on the date on which notice of the Holder’s election to
exercise is given pursuant to the paragraph above; or (ii) as the average of
the market prices for each of the five trading days preceding such notice date,
whichever results in a higher market price. 
If at any time the Common Stock is not listed on the New York Stock
Exchange, the American Stock Exchange, any domestic security exchange, or
quoted on the Nasdaq Stock Market, the “market price” shall be the fair value
thereof determined jointly by the Company and the Holder; provided, that if
such parties are unable to reach agreement within a reasonable period of time,
such “market price” shall be determined by an appraiser jointly selected by the
Company and the Holder.  The
determination of such appraiser shall be final and binding on the Company and
the Holder, and the fees and expenses of such appraiser shall be paid by the
Company.  Any fractional share resulting
from such cashless exercise shall be eliminated.

 

The Warrant Shares so purchased shall be deemed to be
issued to the Holder as the record owner of such Warrant Shares, as of the
close of business on the date on which this Warrant shall have been
surrendered, the completed Exercise Agreement shall have been delivered, and
payment shall have been made for such Warrant Shares as set forth above.
Certificates for the Warrant Shares so purchased, representing the aggregate
number of shares specified in the Exercise Agreement, shall be delivered to the
Holder within a reasonable time after this Warrant shall have been so
exercised. The certificates so delivered shall be in such denominations as may
be reasonably requested by the Holder and shall be registered in the name of
the Holder or such other name as shall be designated by the Holder. If this
Warrant shall have been exercised only in part, then, unless this Warrant has
expired, the Company shall, at its expense, at the time of delivery of such
certificates, deliver to the Holder a new warrant representing the number of
Warrant Shares with respect to which this Warrant shall not then have been
exercised.

 

3.             Exercise Period.  This Warrant
may be exercised any time before 2:00 p.m., Las Vegas, Nevada time, on June 18,
2008  (the “Exercise Period”).

 

4.             Conditions
Precedent Call and Redemption. 
Notwithstanding anything else herein to the contrary, this Warrant may
be called and redeemed, if not previously exercised, after the Company gives
written notice to Holder of the Company’s election to call and redeem (the
“Redemption Notice”) the Warrant and, if within thirty (30) days of such Redemption Notice, Holder has
not exercised the Warrant pursuant to the terms hereof. In the event of such
redemption, the Company must pay to Holder consideration equal to the par value
of the shares issuable pursuant to the Warrant.

 

5.             Covenants
of the Company.          The Company hereby covenants and
agrees as follows:

 

(a)           Shares to be Fully Paid.  All Warrant Shares shall, upon issuance in
accordance with the terms of this Warrant, be validly issued, fully paid, and
non-assessable.

 

(b)           Reservation of Shares.  During the Exercise Period, the Company
shall at all times have authorized, and reserved for the purpose of issuance
upon exercise of this Warrant, a sufficient number of shares of Common Stock to
provide for the exercise of this Warrant.

 

2

 

(c)           Successors and Assigns.  This Warrant shall be binding upon any
entity succeeding to the Company by merger, consolidation, or acquisition of
all or substantially all the Company’s assets.

 

6.             Payment
of Expenses.  The Company and the
Holder shall each be responsible for their own costs and expenses payable in
connection with (a) the negotiation, preparation, execution and delivery of
this Agreement and the other agreements to be executed in connection herewith;
and (b) the issuance of certificates for Warrant Shares upon the exercise of
this Warrant.  The Company shall pay any
issuance tax in connection with the issuance of certificates for Warrant
Shares; provided, however, that the Holder shall be responsible for any income
or other taxes in connection with such issuance.

 

7.             No
Rights or Liabilities as a Stockholder. 
This Warrant shall not entitle the Holder to any voting rights or other
rights as a stockholder of the Company. No provision of this Warrant, in the
absence of affirmative action by the Holder to purchase Warrant Shares, and no
mere enumeration herein of the rights or privileges of the Holder, shall give
rise to any liability of such Holder for the Exercise Price or as a stockholder
of the Company, whether liability is asserted by the Company or by creditors of
the Company.

 

8.             Transfer,
Exchange, and Replacement of Warrant. 
Neither this Warrant, nor any interest in this Warrant, may be sold,
distributed, assigned, offered, pledged or otherwise transferred without the
express written consent of the Company.

 

(a)           Exchange of Warrants; Replacements
of Warrants.  This Warrant is
exchangeable upon the surrender hereof by the Holder to the Company for new
warrants of like tenor and date representing in the aggregate the right to
purchase the number of shares of Common Stock purchasable hereunder, each of such
new Warrants to represent the right to purchase such number of shares of Common
Stock (not to exceed the aggregate total number purchasable hereunder) as shall
be reasonably designated by the Holder at the time of such surrender.  Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction, or mutilation of
this Warrant, and, in case of loss, theft or destruction, of indemnity, or
security reasonably satisfactory to it, and upon surrender and cancellation of
this Warrant, if mutilated the Company will make and deliver a new warrant of
like tenor, in lieu of this Warrant.

 

(b)           Cancellation: Payment of Expenses.  Upon the surrender of this Warrant in
connection with any transfer, exchange, or replacement as provided in this
Section 8, this Warrant shall be promptly canceled by the Company.  The Company and the Holder shall each be
responsible for their own costs and expenses payable in connection with the
preparation, execution, and delivery of new warrants pursuant to this  Section
8. The Holder shall be responsible for any tax which may be payable in
connection with any transfer of a certificate for Warrant Shares.

 

(c)           Registrar.  The Company shall maintain, at its principal
executive offices (or such other location as the Company may designate by
notice to the Holder), a registrar for this Warrant, in which the Company shall
record the name and address of the person in whose name this Warrant has been
issued, as well as the name and address of each transferee and each prior owner
of this Warrant.

 

3

 

9.             Amendments.  No amendment or modification of this  Warrant
shall be deemed effective unless and until such amendment or modification is an
express writing executed by both the Parties.

 

10.           Governing Law.
This Warrant shall be governed by and construed and enforced in accordance with
the internal laws of the State of Nevada without regard to the body of law
controlling conflicts of law. The parties hereto hereby submit to the exclusive
jurisdiction of the courts located in Las Vegas, Nevada, with respect to any
dispute arising under this Warrant and the transactions contemplated hereby.

 

11.           Registration
Rights.

 

(a)           Piggyback Registration.  If the Company proposes to register any of
its Securities under the Securities Act (other than pursuant to Form S-4 or
Form S-8) for itself or on behalf of any security holder, the Company will give
written notice thereof to Holder.  If
Holder notifies the Company within twenty (20) days after receipt of any such
notice of his desire to include any such Registrable Securities in such
proposed registration statement, the Company shall afford Holder the
opportunity to have any such Shares registered under such registration
statement.  For purposes of this
Agreement, the term “Registrable Securities” means the Warrant Shares issued or
issuable and any shares of capital stock issued or issuable as a dividend on or
in exchange for or otherwise with respect to any of the foregoing.

 

(b)           Obligations of the Holder.  It shall be a condition precedent to the
obligations of the Company to complete the registration pursuant to this
Warrant with respect to the Registrable Securities of the Holder that such
Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of
the Registrable Securities held by it as shall be reasonably required to effect
the registration of such Registrable Securities and shall execute such
documents and otherwise cooperate with the Company as reasonably requested by
the Company in connection with the preparation and filing of the registration
statement. At least three (3) business days prior to the first anticipated
filing date of the Registration Statement, the Company shall notify the Holder
of the information the Company requires from each such Holder.

 

(c)           Expense of the Registration.  All reasonable expenses, other than
underwriting discounts and commissions, incurred by the Company in connection
with registrations, filings or qualifications pursuant to this Section 11,
including without limitation, all registration, listing and qualification fees,
printers and accounting fees, and the fees and disbursements of counsel for the
Company, shall be borne by the Company.

 

(d)           Termination or Withdrawal of
Registration.  The Company shall
have the right to terminate or withdraw any registration made pursuant to this
subparagraph (i) prior to the effectiveness of such registration whether or not
any Holder has elected to include such Holder’s Shares in such registration.

 

12.           Expiration
Date.  This Warrant shall expire and
become null and void and of no further force or effect at 5:00 p.m. Las Vegas,
Nevada time on June 18, 2008.

 

IN WITNESS WHEREOF, the Company has caused this
Warrant to be signed by its duly authorized officer.

 

4

 

	
   

  	
  VENDINGDATA CORPORATION

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
  BY:  

  	
  /S/
  Stacie L.
  Brown,      7/21/03

  	
   

  
	
   

  	
   

  	
  Stacie L. Brown, Attorney-in-Fact
  for

  
	
   

  	
   

  	
  Steven J. Blad,
  President and

  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Effective
  Date:    June 18, 2003

  

 

5

 

EXERCISE AGREEMENT

 

TO:         VENDINGDATA CORPORATION
(THE “COMPANY”)

 

The undersigned, pursuant to the provisions set forth
in the attached Warrant to Purchase Shares of Common Stock (the “Warrant”)
hereby irrevocably elects and agrees to purchase
                         
shares (the “Exercised Shares”) of the Company’s common stock (“Common Stock”)
covered by the Warrant and makes payment herewith in full therefore at the
price per share provided by the Warrant in cash or by certified or official
bank check in the amount of
$                                .  If said number of shares of Common Stock
shall not be all the shares purchasable under the Warrant, a new warrant is to
be issued in the name of said undersigned covering the balance of the shares
purchasable thereunder less any fraction of a share paid in cash.  Please issue a certificate or certificates
for the Exercised Shares in the name of and pay any cash for any fractional
share to:

 

	
   

  	
  NAME:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SIGNATURE:  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DATED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADDRESS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NOTE:

  	
  The above signature
  should correspond exactly with the name on the face of the Warrant.

  

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]