DB Design Theory - Thoughts

ive been reading some tutorials and articles on db design…and then i started also using DBDesigner 4 (great open source app, check it out) to design by DB’s.

the question lies here:

we have two tables…(for simplicity, each just has two fields)

VendorTbl

VendorID (PK)
VendorName

VendorContactTbl

VendorContactID (PK)
ContactName

Now, two ways im looking at this that I wanted your opinions on:

Method 1:

The VendorContactTbl would also have a VendorID

VendorContactTbl

VendorContactID (PK)
ContactName
VendorID (FK)

OR

This is mostly what I’m getting in tutorials

A third table

Vendors_Contacts_tbl

VendorID (FK)
VendorContactID (FK)

Thoughts, reasons?

Thanks!