First Amendment to Settlement Agreement among Cardivan Company, Corral United, Jackpot Enterprises, and Albertson's Inc.

Summary

This amendment updates a previous settlement agreement between Cardivan Company, Corral United, Jackpot Enterprises, and Albertson's Inc. The main change concerns how license fee credits are calculated and applied between the parties, specifically relating to certain Las Vegas stores and payments involving Raley's. The amendment clarifies when and how credits are given, and under what conditions they may be reduced or eliminated. All other terms of the original settlement remain unchanged. The amendment is effective once related legal actions are resolved.

EX-10.18 25 a2060187zex-10_18.htm EXHIBIT 10.18 Prepared by MERRILL CORPORATION
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EXHIBIT 10.18

    "RCT" means the material omitted has been filed separately with the Securities and Exchange Commission with an application requesting confidential treatment.

FIRST AMENDMENT TO SETTLEMENT AGREEMENT

    THIS FIRST AMENDMENT TO SETTLEMENT AGREEMENT ("First Amendment") is made as of this 22nd day of December, 1999, among Cardivan Company, a Nevada corporation; Corral United, Inc., a Nevada corporation; Jackpot Enterprises Inc., a Nevada corporation; and Albertson's, Inc., a Delaware corporation.

RECITALS

    1.  The parties to this First Amendment entered a Settlement Agreement as of November 18, 1999, to resolve disputes arising from license agreements and litigation identified therein; and now desire to amend the Settlement Agreement to more accurately reflect their original intent.

AGREEMENT

    1.  Paragraph 13 of the Settlement Agreement is hereby omitted, and the following substituted in its place:

        13. Albertson's agrees to give Cardivan a credit against the license fees it has paid to Albertson's on account of the 15 Las Vegas stores, from the time that Raley's took possession until Feb. 1, 2000, ("Paid License Fees") to the extent the Paid License Fees exceed the amount that United agreed to pay to Raley's. (The amount of excess is approximately RCT per device per month reflecting a payment for the Southern Nevada stores of RCT per device per month which amount constitutes the total amount of lost fees that Raley's would have received from United for all devices in Nevada.) This credit shall automatically be reduced, and may be reduced to zero, by a) the amount of the Paid License Fees, if any, that a court orders that Raley's is entitled to; and/or by b) the amount of the Paid License Fees, if any, that Albertson's, and Cardivan agree should be paid to Raley's. This credit shall not be given until both the Action and United Coin v. Cardivan, Albertson's, et al. filed in District Court, Clark Co., Nevada, are dismissed or otherwise finally adjudicated.

    2.  In all other respects, the Settlement Agreement remains unchanged and in full force and effect.


ALBERTSON'S INC.   JACKPOT ENTERPRISES INC.

By:

/s/ Charles F. Cole

 

By:

/s/ Don R. Kornstein
  Name: Charles F. Cole     Name: Don R. Kornstein
  Title: Vice President, Litigation and Regulatory Affairs     Title: President and Chief Executive Officer

AMERICAN DRUG STORES INC.

 

CARDIVAN COMPANY

By:

/s/ Charles F. Cole

 

By:

/s/ George Congdon
  Name: Charles F. Cole     Name: George Congdon
  Title: Vice President     Title: President

LUCKY STORES INC.

 

CORRAL UNITED INC.

By:

/s/ Charles F. Cole

 

By:

/s/ George Congdon
  Name: Charles F. Cole     Name: George Congdon
  Title: Vice President     Title: President



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EXHIBIT 10.18