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Prepared by MERRILL CORPORATION

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EXHIBIT 10.16    
  

    "RCT" means the material omitted has been filed separately with the Securities

and Exchange Commission with an application requesting confidential treatment.  

 LICENSE AGREEMENT

(GAMING DEVICES)  

    THIS LICENSE AGREEMENT ("Agreement") is made as of the 16th day of September, 1998, by and between Albertson's, Inc., a Delaware corporation
("Licensor"), and Cardivan Company, a Nevada corporation ("Licensee"). 

WITNESSETH:  

    WHEREAS, Licensor is the owner and operator of supermarkets in the State of Nevada; and 

    WHEREAS,
Licensee is a duly licensed operator of gaming devices in the State of Nevada; and 

    WHEREAS,
Licensor desires to grant a license to Licensee to use, and Licensee desires to take from Licensor, on the terms and conditions hereinafter set forth, certain floor space
located in Licensor's supermarkets described on Exhibit"A" attached hereto and incorporated herein by this reference, together with certain additional supermarkets opened by Licensor in the State of
Nevada during the term of this Agreement, for the operation of gaming devices. 

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties agree as follows: 

    1.  License.  

    (a) Licensor hereby grants to Licensee a license ("License") for the operation of gaming devices ("Machines") (i) in each of the supermarkets designated on
Exhibit"A," together with any additional supermarkets in the State of Nevada opened or acquired by Licensor for business to the public after

the date of this Agreement but prior to July 1, 1999 (individually, an "Existing Store" and, collectively, the "Existing Stores"), and (ii) in any additional supermarkets in the State of
Nevada opened or acquired by Licensor for business to the public on or after July 1, 1999 (individually, a "New Store" and, collectively, the "New Stores"). For the purposes of this Agreement,
a New Store shall include any remodel, expansion remodel, or an on-site or off-site replacement of either an Existing Store or a New Store; however, neither a New Store nor an
Existing Store shall include (A) any remodel, expansion remodel, or on-site or off-site replacement, of any supermarket currently licensed to Anchor Coin, (B) any
supermarket, together with any remodel, expansion remodel, or on-site or off-site replacement of such supermarket, which is either (1) acquired by Licensor subject to an
agreement for the operation of gaming devices, or (2) subject to an agreement for the operation of gaming devices which is assumed, whether by operation of law or otherwise, by Licensor in
connection with an acquisition, or (C) any fuel center, convenience store or other facility of any kind whatsoever owned or operated by Licensor which does not share a common public entrance
with a Store ("Other Facility"). RCT. The Existing Stores and New Stores are also hereinafter referred to, individually, as a "Store" and, collectively, as the "Stores."

    (b) In the event the existing agreement with Anchor Coin, as extended, modified or replaced from time to time, shall terminate, Licensor further grants to Licensee a
license for the operation of Machines in any supermarket, together with any remodel, expansion remodel, or on-site or off-site replacement of such supermarket, currently licensed to Anchor Coin on the
same terms and conditions, except length of term and license fees, set forth in this Agreement. The term of said license shall commence on the date of termination of the agreement with Anchor Coin and
shall terminate on the date of expiration of this Agreement. The license fee for each such supermarket shall be the greater of (i) the license fee for such supermarket as set forth in the
Anchor agreement, and (ii) the license fee for a Store located in the same geographic area as such supermarket under this Agreement. The determination of the greater of the two
(2) license fees shall be made on a monthly basis based on the license fees which would otherwise be in effect on the first day of each such month.

 

    (c) The "Licensed Premises" shall consist of the following: (i) for each Existing Store, the area currently occupied by the existing Machines (or, for any
supermarket opened or acquired by Licensor after the date of this Agreement but prior to July 1, 1999, the area occupied by the Machines in such store on July 1, 1999), the approximate
size of which is shown on Exhibit "A," and (ii) for each New Store, the area shown on the fixture plan approved by Licensor and provided to Licensee. The fixture plan for each New Store shall
be designed by Licensor to provide adequate space for the Minimum Number of Machines (as defined in Paragraph 1(d)) with bill validators. Licensee hereby approves the fixture plan shown on
Exhibit "B" attached hereto and incorporated herein by this reference. The location of the Licensed Premises may be changed from time to time by Licensor subject to the conditions set forth in
Paragraph 3(c) of this Agreement.

 

    (d) Unless otherwise agreed by the parties, the License granted herein shall be for the following number of Machines ("Minimum Number of Machines"): (i) for each
Existing Store (exclusive of any supermarket opened or acquired by Licensor after the date of this Agreement but prior to July 1, 1999), the number of Machines designated on Exhibit "A" or such
lesser number as are approved or mandated

by the applicable local, state or federal governmental authority, (ii) for each Existing Store opened or acquired by Licensor after the date of this Agreement but prior to July 1, 1999,
fifteen (15) or such lesser number as are approved or mandated by the applicable local, state or federal governmental authority, and (iii) for each New Store, fifteen (15) or such
lesser number as are approved or mandated by the applicable local, state or federal governmental authority.

 

    2.  Term.  

    (a) The term of this Agreement for each Existing Store shall commence on July 1, 1999 ("Effective Date") and shall terminate at 11:59 p.m. on
June 30, 2010, or on the date Licensor permanently ceases supermarket operations at all of the Stores, whichever first occurs.

 

    (b) The term of this Agreement for each New Store shall commence on the date Licensor first opens or reopens the Store for business to the public and shall terminate at
11:59 p.m. on June 30, 2010, or on the date Licensor permanently ceases supermarket operations at the Store, whichever first occurs; provided, however, that, in the event Licensor has
not taken all steps required to permit Licensee to commence operations at such Store as of the date specified above, the term of this Agreement for such Store shall not commence until all such steps
have been taken.

 

    (c) Anything in this Agreement to the contrary notwithstanding, either party shall have the right, in its sole and absolute discretion, to terminate this Agreement as
of 11:59 p.m. on June 30, 2005, upon not less than RCT prior written notice to the other party.

 

    (d) Licensee
agrees that Licensor has the right at any time, in its sole and absolute discretion, to temporarily or permanently cease supermarket operations at the
Store(s). In the event Licensor permanently ceases supermarket operations at a Store, this Agreement shall terminate as to such Store as of the date of permanent cessation of supermarket operations,
and both parties shall thereafter be released from all further obligations hereunder as to such Store. 

    3.  Payment.  In consideration of the rights granted herein, licensee agrees to pay to Licensor during
the term of this agreement the following amounts: 

    (a) RCT,
a nonrefundable fee in the amount of RCT. 

    (b) RCT,
a security deposit ("Deposit") in the amount of RCT. The parties agree that, effective RCT, and on June 1 of each of the next succeeding RCT, the amount
of the Deposit shall be reduced by RCT of the original principal amount of said Deposit, the amount of which reduction shall be paid to Licensor and credited against the license fees otherwise due and
payable by Licensee to Licensor for
June of the applicable calendar year. The Deposit (or balance thereof) shall be held by Licensor as security for the faithful performance by Licensee of all of the terms, covenants, conditions and
agreements of this Agreement. If any amount due and payable by Licensee to Licensor shall be overdue and unpaid, or should Licensor make any payment on behalf of Licensee, or should Licensee default
in its performance of any of the terms, covenants, conditions or agreements set forth in this 

Agreement, Licensor may, in its sole and absolute discretion and without prejudice to any other rights or remedies which Licensor may have on account thereof, apply the Deposit (or balance thereof),
or so much thereof as may be necessary, to compensate Licensor for such failure or default, and Licensee shall, within ten (10) days after receipt of written notice from Licensor, restore said
Deposit to the same amount as existed immediately prior to the application of such proceeds to compensate Licensor as provided above. Except as otherwise hereinafter set forth, the Deposit (or balance
thereof) shall be returned by Licensor to Licensee within ten (10) days after the date of expiration or earlier termination of this Agreement after deduction for any amounts due and payable by
Licensee to Licensor hereunder. 

    (c) For
each Existing Store, a license fee in the amount designated on Exhibit "C" attached hereto and incorporated herein by this reference. 

    (d) The
parties agree and understand that the license fees for each Store as set forth on Exhibit "C" assume that (i) the hours of operation of such Store will
not be changed from the hours of operation shown on Exhibit "A," (ii) the location of the Licensed Premises will at all times be located as near as practicable to the Store's public entrances
and checkstands, (iii) the size of the Licensed Premises will not be substantially reduced, (iv) the size of the Store will not be substantially changed, (v) smoking will at all
times be permitted in the Licensed Premises (but not in the balance of the Store), and (vi) there shall be no change by any local, state or federal governmental authority in any law, rule or
regulation specifically affecting the gaming industry (as opposed to any law, rule or regulation of general applicability including, but not limited to, any increase in tax rates based on Licensee's
gross income from all sources). In the event of (i) any increase or decrease in the hours of operation of a Store, (ii) change in size or location of the Licensed Premises,
(iii) change in size of the Store, (iv) ban on smoking in the Licensed Premises, or (v) change in any law, rule or regulation specifically affecting the gaming industry, which
event materially affects Licensee's revenues in the Store, the parties agree to negotiate in good faith an adjustment of the license fees for such Store taking into consideration all relevant factors
including, without limitation, customer count, size of Store, and Licensee's revenue per Machine in the Store. In the event either party determines that an adjustment in license fees is required as a
result of the occurrence of an event described in this subparagraph (c), such party shall provide written notice of such event to the other party within sixty (60) days after the date of
occurrence of such event, failing which any right of adjustment resulting from the occurrence of such event shall be deemed waived. 

    (e) Anything
in this Agreement to the contrary notwithstanding, all interest on amounts paid to, or held by, Licensor pursuant to this Paragraph 3 (Payment)
shall be retained by Licensor. Licensor shall have
no obligation to segregate any amounts paid to, or held by, Licensor pursuant to this Paragraph 3 (Payment). 

    (f)  All
amounts described in subparagraph (c) of this Paragraph 3 (Payment) shall be due and payable in equal monthly installments in advance without
notice or demand on or before the first day of each month. License fees for any partial month shall be prorated. 

    (g) All
payments shall be made to Licensor at P.O. Box 20, Boise, Idaho 83726, Attention: Property Accounting, or to such other person or address designated in
writing by Licensor. 

    4.  Taxes.  Licensee agrees to pay during the term of this agreement all taxes and assessments levied or
assessed against the machines and any other personal property placed on the licensed premises by licensee, together with all fees and other charges now or hereafter required to be paid to any local,
state or federal governmental authority for the ownership, operation, maintenance, repair or replacement of the machines or any other personal property placed on the licensed premises by licensee. 

    5.  Operation.  Licensee agrees, at its sole expense, to maintain and repair the machines and any other
personal property placed on the licensed premises by licensee. Licensee shall keep the machines in good operating condition. Licensee agrees at all times during the term of this agreement to keep the
minimum number of machines in each of the stores, which machines shall be available for use by the 

public (subject to normal wear and tear and damage due to fire or other casualty) at all times that the stores are open for business to the public. 

    6.  Change Person.  Licensee agrees to have a change person on duty on the licensed premises of each
store at all times that the store is open for business to the public. 

    7.  Title To Fixtures.  All personal property (including, without limitation, the Machines) placed on the
Licensed Premises by Licensee shall be and remain the personal property of Licensee and, upon the expiration or earlier termination of this Agreement, Licensee shall, within ten (10) days
thereafter and at its sole expense, remove from the Store all such personal property and restore the Licensed Premises to its original condition, ordinary wear and tear excepted. 

    8.  Indemnification.  Licensee agrees to indemnify, defend and hold harmless Licensor from and against
any and all liability, claims, damages, expenses (including reasonable costs and attorneys' fees and reasonable costs and attorneys' fees on any appeal), judgments, proceedings and causes of action of
any kind whatsoever, arising out of or in any way connected with (i) the exercise of any of Licensee's rights or privileges granted herein, (ii) the ownership, operation, maintenance,
repair or replacement of the Machines or any other personal property placed on the Licensed Premises by Licensee, or (iii) the willful or negligent act or omission of Licensee, its agents,
contractors or employees. 

    9.  Insurance.  Licensee agrees to provide and maintain during the term of this Agreement, including any
and all extensions hereof, commercial general liability insurance (including product liability, contract liability and broad form property damage endorsements) insuring Licensee against claims for
personal injury, bodily injury or death, and property damage or destruction, occurring in, on or about the Licensed Premises. Such insurance shall be written as the primary coverage on the Licensed
Premises with an insurer licensed to do business in the State of Nevada and with an A.M. Bests rating of A or better. Licensor shall be named on the policy as additional insured. The limits of
liability of such insurance shall be not less than $2,000,000 for personal injury or bodily injury or death of any one (1) or more persons in one (1) occurrence and $500,000 with respect
to damage to or destruction of property; or, in lieu of such coverage, a combined single limit (covering personal injury, bodily injury or death, and property damage or destruction) with a limit of
not less than $5,000,000 per occurrence. Licensee shall furnish Licensor with certificate(s) evidencing such insurance. The policies of such insurance shall provide that the insurance represented by
such certificate(s) shall not be canceled or nonrenewed without the giving of thirty (30) days prior written notice to Licensor. 

    10.  Exclusive.  Licensee shall have the exclusive right during the term of this Agreement, including any
and all extensions hereof, to operate gaming devices in the Stores. No part of any Store shall at any time during the term of this Agreement, including any and all extensions hereof, be used or
occupied by any other person for the purpose of operating gaming devices. Anything in this Paragraph 10 (Exclusive) to the contrary notwithstanding, the exclusive right granted in this
Paragraph 10 (Exclusive) as to any particular Store or Stores shall not commence until the date specified in Paragraph 2 (Term) and shall terminate upon termination of this Agreement as
to such Store or Stores. 

    11.  Attorneys' Fees.  If either party to this Agreement initiates or defends litigation with the other
party in any way connected with this Agreement, the prevailing party in such litigation, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to recover
from the losing party its reasonable costs and attorneys' fees (including its reasonable costs and attorneys' fees on any appeal). If either party to this Agreement initiates or defends litigation
with a third party because of the violation of any term, covenant, condition or agreement contained in this Agreement by the other party to this Agreement, then the party so litigating shall be
entitled to recover from the other party to this Agreement its reasonable costs and attorneys' fees (including its reasonable costs and attorneys' fees on any appeal) incurred in connection with such
litigation. All such costs and attorneys' fees shall be deemed to have accrued on commencement of any such action or proceeding and shall be enforceable whether or not such action or proceeding is
prosecuted to judgment. 

    12.  Assignment.  Licensee may not assign this Agreement except to a wholly-owned subsidiary of Jackpot
Enterprises, Inc. that agrees in writing to be bound by all of the terms, covenants, conditions and agreements contained herein. 

    13.  Compliance with Law.  Licensee shall conduct its business in such a manner as to comply with the
requirements of all local, state and federal laws, rules and regulations applicable thereto. Licensee shall not use the Licensed Premises, or permit the Licensed Premises to be used, for any unlawful
purpose. 

    14.  Licenses and Permits.  Licensee agrees to obtain within one hundred twenty (120) days after
Licensee's receipt of written notice from Licensor, as to any New Store, all licenses and permits required for the operation of the Minimum Number of Machines in such Store. Licensee agrees to make
timely application for the applicable licenses and permits for each such Store, to diligently and continuously pursue approval and issuance of same, and to provide Licensor copies of all such licenses
and permits within ten (10) days after Licensee's receipt of request for same. In the event Licensee fails to obtain all such licenses and permits as to any such Store within the applicable
time period set forth above, Licensor shall have the option, at any time thereafter upon ten (10) days written notice to Licensee and provided Licensee does not obtain all such licenses and
permits prior to expiration of said ten (10) day period, to terminate this Agreement only as to such Store, in which event this Agreement shall terminate as to such Store as of the date of
expiration of such ten (10) day period and both parties shall thereafter be released from all further obligations hereunder as to such Store. 

Licensee
agrees during the term of this Agreement to maintain in good standing all licenses and permits required for the operation of the Minimum Number of Machines in the Stores; provided, however,
that in the event any such license or permit is revoked, suspended or otherwise restricted for any reason (other than financial) beyond Licensee's reasonable control to the extent that Licensee is
prevented from performing any of the terms, covenants, conditions or agreements contained herein with respect to any Store or Stores, Licensee shall immediately remove all of Licensee's personal
property (including, without limitation, the Machines) from such Store or Stores but shall remain liable for the payments described in Paragraph 3 (Payment) for such Store or Stores for a
period of sixty (60) days (or such shorter period of time as is required by Licensor to locate another operator and for such operator to open for business in such Store or Stores) after the
date of such revocation, suspension or restriction, whereupon (i) this Agreement shall terminate only as to such Store or Stores as of the date of expiration of such sixty (60) day
period (or such shorter period of time as is required by Licensor to locate another operator and for such operator to open for business in such Store or Stores), and (ii) both parties shall
thereafter be released from all further obligations hereunder as to such Store or Stores. Licensee agrees to provide Licensor with a copy of any notice of revocation, suspension or restriction of any
of Licensee's licenses or permits required for the operation of the Machines in the Store within ten (10) days after Licensee's receipt of same. 

The
one hundred twenty (120) day time period set forth in the first grammatical paragraph of this Paragraph 14 (Licenses and Permits) shall be extended for any period or periods of time
equal to any period or periods of delay caused by strikes, lockouts, fire or other casualty, the elements or acts of God, refusal or failure of any governmental authority to issue all licenses and
permits required for the operation of the Machines in the Stores (provided Licensee makes timely application for all applicable
licenses and permits and thereafter diligently and continuously pursues approval and issuance of same), or other causes, other than financial, beyond Licensee's reasonable control. 

    15.  Alterations.  Licensee shall not make any additions, alterations or improvements to the Licensed
Premises (including, without limitation, installation of wall and/or floor coverings and installation of signs on or about the Machines) ("Alterations") without Licensor's prior written approval,
which approval shall not be unreasonably withheld or delayed. Licensee acknowledges that the primary business of the Stores is the operation of a supermarket and agrees that Licensor shall not be
deemed to have unreasonably withheld its approval to any Alterations if such Alterations are inconsistent with the general decor of the Store (as determined by Licensor in its sole and absolute
discretion) or obstruct the visibility of the Store's interior signage or departments. 

    16.  License Only.  Nothing herein contained shall be construed as constituting Licensor and Licensee as
landlord and tenant, sublandlord and subtenant, co-partners or joint venturers. 

    17.  Quiet Possession.  Licensor covenants as to each Store that, from and after the date of commencement
of the term of this Agreement as to such Store and so long as Licensee performs all of the terms, covenants, conditions and agreements of this Agreement, Licensee shall have quiet and peaceful
possession of the Licensed Premises in such Store and enjoy all of the rights granted herein without interference from Licensor, or anyone having title paramount to Licensor. 

    18.  Default.  A party shall be deemed to be in default of this Agreement only upon the expiration of
thirty (30) days (ten (10) days in the event of failure to pay money) from receipt of written notice from the other party specifying the particulars in which such party has failed to perform the
obligations of this Agreement unless such party, prior to the expiration of said thirty (30) days (ten (10) days in the event of failure to pay money), has rectified the particulars specified in said
notice of default. However, such party shall not be deemed to be in default if such failure (except a failure to pay money) cannot be rectified within said thirty (30) day period and such party is
using good faith and its best efforts to rectify the particulars specified in the notice of default. 

    Except
where otherwise specifically stated herein to the contrary, in the event of a default by Licensor in the performance of any of the terms, covenants, conditions and agreements
contained herein as to any Store or Stores, Licensee may terminate this Agreement as to any such Store or Stores, or as to all Stores, upon ten (10) days prior written notice to Licensor
without prejudice to any other rights or remedies provided by law. In the event of any such termination, the Deposit (or balance thereof) shall be returned by Licensor to Licensee within ten
(10) days after the date of such termination without deduction for any amounts due and payable by Licensee to Licensor hereunder. 

    Except
where otherwise specifically stated herein to the contrary, in the event of a default by Licensee in the performance of any of the terms, covenants, conditions and agreements
contained herein as to any Store or Stores, Licensor may terminate this Agreement as to any such Store or Stores, or as to all Stores, upon ten (10) days prior written notice to Licensee,
re-enter the Licensed Premises, either with or without process or law, expel and remove from the Licensed Premises all of Licensee's personal property (including, without limitation, the
Machines), and repossess and enjoy the Licensed Premises without prejudice to any other rights or remedies provided by law. 

    19.  Waiver.  The failure of a party to insist upon strict performance of any of the terms, covenants,
conditions or agreements contained herein shall not be deemed a waiver of any rights or remedies that said party may have, and shall not be deemed a waiver of any subsequent breach or default in the
performance of any of the terms, covenants, conditions or agreements contained herein by the other party. 

    20.  Additional Remedies.  In addition to the remedies set forth in this Agreement, Licensor and Licensee
shall have all other remedies provided by law to the same extent as if fully set forth herein word for word. No remedy herein conferred upon, or reserved to Licensor or Licensee, shall exclude any
other remedy herein or by law provided, but each shall be cumulative. 

    21.  Notices.  

    All
notices given pursuant to this Agreement shall be in writing and shall be given by personal delivery, by United States mail or by United States express mail or other established
express delivery 

service (such as Federal Express), postage or delivery charge prepaid, return receipt requested, addressed to the person and address designated below: 

	Licensor:	 	Albertson's, Inc.

250 Parkcenter Boulevard

P.O. Box 20

Boise, ID 83726
	

Attention:	
 	

Legal Department
	

Licensee:	
 	

Cardivan Company

1110 Palms Airport Drive

Las Vegas, NV 89119

The
person and address to which notices are to be given may be changed at any time by any party upon written notice to the other party. All notices given pursuant to this Agreement shall be deemed
given upon receipt. 

    For
the purpose of this Agreement, the term "receipt" shall mean the earlier of any of the following: (i) the date of delivery of the notice or other document to the address
specified pursuant to this paragraph as shown on the return receipt, (ii) the date of actual receipt of the notice or other document by the person or entity specified pursuant to this
paragraph, or (iii) in the case of refusal to accept delivery or inability to deliver the notice or other document, the earlier of (A) the date of the attempted delivery or refusal to
accept delivery, (B) the date of the postmark on the return receipt, or (C) the date of receipt of notice of refusal or notice of nondelivery by the sending party. 

    22.  Captions and Headings.  The captions and headings in this Agreement are for reference only and shall
not be deemed to define or limit the scope or intent of any of the terms, covenants, conditions or agreements contained herein. 

    23.  Entire Agreement.  This Agreement contains the entire agreement between the parties and supersedes
all prior agreements, oral or written, with respect to the subject matter hereof. The provisions of this Agreement shall be construed as a whole and not strictly for or against either party. 

    24.  Construction.  In construing the provisions of this Agreement and whenever the context so requires,
the use of a gender shall include all other genders, the use of the singular shall include the plural, and the use of the plural shall include the singular. 

    25.  Joint and Several.  In the event any party hereto is composed of more than one person, the
obligations of said party shall be joint and several. 

    26.  Third Party Beneficiary.  This Agreement is not intended to create, nor shall it be in any way
interpreted or construed to create, any third party beneficiary rights in any person not a party hereto unless otherwise expressly provided herein. 

    27.  Confidentiality.  From and after the date of this Agreement, the terms of Paragraph 3
(Payment) of this Agreement shall be kept confidential and shall not, except as required by law, be disclosed by either party to any person except (i) such party's agents, representatives or
employees (including, without limitation, attorneys, accountants and financial advisors), (ii) gaming licensing authorities of the State of Nevada or any other local, state or federal public or
governmental authority to the extent required in the ordinary cause of business, (iii) any actual or prospective landlord, purchaser, lender, tenant or subtenant of all or any part of the real
or personal property subject of this Agreement provided such information is tendered to such person with a request that same be held confidential, or (iv) to the extent required by any
agreement in effect on the date of this Agreement. 

    28.  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall for
all purposes be deemed an original and all of which together shall constitute one and the same instrument, and shall become effective only upon execution and delivery of one or more counterparts (or a
telecopy thereof) by each of the parties hereto. 

    29.  Existing Agreement.  The parties have heretofore entered into a License Agreement (Gaming Devices)
dated March 17, 1993 ("Existing Agreement") for Licensee's operation of gaming devices in Licensor's Stores. As of the Effective Date (as defined in Paragraph 2(a) of this Agreement),
the Existing Agreement is terminated. The refundable fee referenced in Paragraph 3(b) of the Existing Agreement shall be retained by Licensor and credited to the nonrefundable fee and Deposit
required to be paid by Licensee pursuant to Paragraphs 3(a) and 3(b), respectively, of this Agreement. 

    EXECUTED
as of the date first above written. 

	LICENSEE:	 	LICENSOR:
	Cardivan Company,

a Nevada corporation	 	Albertson's, Inc.,

a Delaware corporation
	

BY:	
 	

/s/ GEORGE CONGDON   
	
 	

BY:	
 	

/s/ WILLIAM H. ARNOLD   

	Title:	 	President	 	 	 	Vice President, Real Estate Law

GUARANTY  

    The undersigned ("Guarantor") hereby unconditionally guarantees the performance by Licensee of all of its obligations under this Agreement, together with any
and all amendments, modifications and supplements thereto hereafter executed by Licensor and Licensee. Guarantor agrees that its liability under this Guaranty shall be primary and that in any right of
action which shall accrue to Licensor under this Agreement, Licensor may, at its option, proceed against Guarantor and Licensee, jointly and severally, or proceed against Guarantor without first
having commenced any action or having obtained any judgment, against Licensee. 

	 	 	Jackson Enterprises, Inc.,

a Nevada corporation
	

 	
 	

By:	
 	

/s/ DON R. KORNSTEIN   

	 	 	Title:	 	President & CEO

EXHIBIT "A"

EXISTING STORES  

	Store
 
	 	Building Sq. Ft.
	 	Licensed

Premises

Sq. Ft.
	 	Minimum

No. of

Machines
	 	Hours of Operation

	149 Keystone Square

Reno, NV	 	32,852	 	150	 	16	 	24 hours
	151 W. Sparks

Sparks, NV	 	43,460	 	150	 	20	 	24 hours
	155 Elko

Elko, NV	 	49,369	 	319	 	15	 	5:00 a.m. to 1:00 a.m.
	170 Kietzke & McCarren

Reno, NV	 	47,334	 	324	 	15	 	24 hours
	172 East Sparks

Sparks, NV	 	47,404	 	324	 	15	 	24 hours
	173 McCarren &

Mae Anne	 	51,561	 	312	 	15	 	24 hours
	175 Lakeside Plaza

Reno, NV	 	50,515	 	355	 	20	 	24 hours
	178 E. Carson City

Carson City, NV	 	52,079	 	312	 	15	 	24 hours
	179 S. Carson City

Carson City, NV	 	51,985	 	364	 	15	 	24 hours
	185 Spanish Springs

Sparks, NV (G.O. 11/11/98 [Est.])	 	52,368	 	354	 	15	 	24 hours
	186 Winnemucca

Winnemucca, NV	 	24,955	 	376	 	10	 	6:00 a.m. to 11:00 p.m.
	611 Buffalo & Flamingo

Las Vegas, NV	 	55,886	 	352	 	15	 	24 hours
	614 Valle Verde & Lake Mead

Henderson, NV	 	52,215	 	319	 	15	 	24 hours
	634 Flamingo & Boulder

Las Vegas, NV	 	30,354	 	125	 	15	 	24 hours
	638 Owens & Eastern

Las Vegas, NV	 	35,120	 	176	 	18	 	5:00 a.m. to 1:00 a.m.
	686 Henderson

Henderson, NV (R-640)	 	52,323	 	319	 	15	 	24 hours
	1606 Vegas & Jones

Las Vegas, NV (R-639)	 	50,320	 	319	 	15	 	24 hours
	1616 Rainbow & Cheyenne

Las Vegas, NV	 	42,630	 	278	 	20	 	24 hours
	1621 Sahara & Ft. Apache

Las Vegas, NV	 	42,630	 	278	 	19	 	24 hours
	1628 Rampart & Lake Mead

Las Vegas, NV	 	44,746	 	324	 	20	 	24 hours

	1638 Craig & Decatur

Las Vegas, NV	 	47,506	 	324	 	15	 	24 hours
	1659 Eastern & Sahara

Las Vegas, NV (R-638)	 	47,600	 	319	 	15	 	24 hours
	1660 Eastern & Windmill

Henderson, NV	 	47,854	 	319	 	15	 	24 hours
	1664 Rainbow & Westcliff

Las Vegas, NV	 	42,042	 	262	 	21	 	24 hours
	1665 Charleston & Lamb

Las Vegas, NV	 	43,838	 	200	 	13	 	24 hours
	1678 Lake Mead & Nellis

Las Vegas, NV	 	43,675	 	176	 	15	 	24 hours

EXHIBIT "B"  

    Exhibit "B" is a floorplan of an Albertson's store. 

EXHIBIT "C"

LICENSE FEES  

License
Fee

Per Machine

Per Month 

RCT

RCT

RCT 

Additional
Provisions: 

    1.  License
fees for New Stores (exclusive of any remodel, expansion remodel, or an on-site or off-site replacement, of an Existing Store or a
New Store) during their RCT will be RCT of the applicable monthly fee set forth above; provided, however, that in the event Licensor has not taken all steps required to permit Licensee to commence
operations as of the date Licensor first opens any such New Store for business to the public, said RCT period shall not commence until all such steps have been taken. 

    2.  In
the event Licensor temporarily ceases supermarket operations at a Store for a period in RCT for any reason which is not the fault of Licensee, its agents,
contractors or employees, the license fee for such Store during the RCT after such Store reopens for business will be RCT of the applicable monthly
fee set forth above; provided, however, that in the event Licensor has not taken all steps required to permit Licensee to recommence operations as of the date Licensor reopens such Store for business,
said RCT period shall not commence until all such steps have been taken. 

    3.  In
the event Licensor temporarily ceases supermarket operations at a Store for any reason which is not the fault of Licensee, its agents, contractors or employees,
the license fee for such Store shall be abated during the period the Store is closed for business. 

    4.  The license fees for any New Store not located in any of the geographic areas noted above shall be mutually agreed upon by the parties taking into consideration all
relevant factors. In the event the parties have not agreed on the license fees for such New Store at least six (6) months prior to its projected opening date, either party shall have the right
to terminate this Agreement as to such New Store (including any remodel, expansion remodel, or on-site or off-site replacement, of such New Store) upon ten (10) days
prior written notice to the other party unless, prior to expiration of said ten (10) day period, the parties agree on the licensee fees for such New Store.

 

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EXHIBIT 10.16Prepared by MERRILL CORPORATION

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EXHIBIT 10.17    
  

"RCT" means the material omitted has been filed separately with the Securities and

Exchange Commission with an application requesting confidential treatment.  

    SETTLEMENT
AGREEMENT made as of the 18 day of November, 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. 

WITNESSETH  

    WHEREAS, Cardivan Company ("Cardivan") and Corral United Inc. ("Corral") are each fully owned subsidiaries of Jackpot Enterprises Inc.
("Jackpot") and both Cardivan and Corral are licensees under certain license agreements with Lucky Stores Inc., a Nevada corporation, and American Drug Stores Inc., an Illinois
corporation, both of which are wholly owned subsidiaries of American Stores Company, a Delaware corporation; 

    WHEREAS,
Albertson's Inc. ("Albertson's") and American Stores Company merged on June 23, 1999, and Albertson's is now the successor to the license agreements to which
American Drug Stores Inc. and Lucky Stores Inc. are a party with Cardivan and Corral; 

    WHEREAS,
the license agreements which are affected by this settlement agreement are as follows: 

    (1) License
agreement made as of September 16, 1998 between Albertson's and Cardivan (the "Albertson's Agreement"); 

    (2) License
agreement entered into as of April 24, 1997 between Lucky Stores Inc. and Cardivan (the "Lucky Agreement"); 

    (3)(i) License
agreement entered as of April 24, 1997 between American Drug Stores Inc. and Corral, and (ii) license agreement
entered into as of April 24, 1997 between American Drug Stores Inc. and Cardivan (collectively, the "Sav-On Agreement"); 

    WHEREAS,
Albertsons and Raley's, a California corporation ("Raley's"), entered into an Asset Purchase Agreement dated as of May 17, 1999, by which Albertson's divested itself
of 15 supermarkets that had been covered by the Albertson's Agreement; 

    WHEREAS,
Cardivan commenced a lawsuit against Albertson's and Raley's, Case No. CV-S-99-1100-DWH-RJJ, in which Cardivan
seeks declaratory relief, injunctive relief, and damages and which action is pending in the United States District Court, District of Nevada ("the Action"); 

    WHEREAS,
Cardivan and Albertson's wish to settle the dispute and lawsuit as between them upon the following terms and conditions. 

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein and after set forth, the parties agree as follows: 

    1.  Albertson's
hereby represents and warrants that it has full authority and ability to enter into this agreement, on behalf of itself and on behalf of Lucky
Stores Inc. and American Drug Stores Inc. 

    2.  The Lucky and Sav-On Agreements are hereby terminated except as provided in Items 5 and 18 hereof, and the Albertson's Agreement is hereby amended to
grant Cardivan an exclusive for the operation of gaming devices in all supermarkets, drug stores and convenience stores (as hereinafter defined) operated in the State of Nevada by Albertson's or any
of its affiliates subject to the terms of this agreement. The term of the Albertson's Agreement is revised to end June 30, 2003; provided, however, that in the event Albertson's and/or its
affiliates, between December 1, 1999 and June 30, 2003, have not opened at least RCT new or replacement supermarkets in that area consisting of the cities of Las Vegas, North Las Vegas,
and Henderson, Nevada, and the unincorporated area

 

immediately adjacent thereto ("Las Vegas metropolitan area") (net of any supermarkets which have been permanently closed for business with no replacement in which gaming is permitted, but without any
deduction or adjustment for stores sold to an unrelated third party or closed for reasons beyond Albertson's reasonable control [e.g., condemnation and change of law]), which
calculation shall be made as of June 30, 2003 the date of expiration of such term shall be extended from June 30, 2003 to June 30,

2004. Cardivan shall have the right, in its sole and absolute discretion, upon written notice to Albertson's received at least RCT prior to expiration of the initial term (which notice may be
conditioned on (i) Albertson's and/or its affiliates opening the RCT supermarkets on the terms set forth above, or (ii) the absence of any material event beyond Cardivan's reasonable
control occurring prior to the date of expiration of the initial term that could adversely affect the financial benefits of Albertson's Agreement to Cardivan) to extend the agreement through
June 30, 2008 either (i) as to all stores and formats including convenience stores, or (ii) as to all stores and formats excluding convenience stores.

 

    3.  Delete most favored nation adjustment from Albertson's Agreement, and limit Jackpot's guaranty in Albertson's Agreement to Cardivan's obligations relating to the
combo stores.

 

    4.  Delete Albertson's and Cardivan's options to terminate the Albertson's Agreement effective June 30, 2005 as set forth in Paragraph 2(c) of the
agreement.

    5.  License
fees: 

    A.  License
fees will be based on store format. Fees in Lucky Agreement will apply to all existing and future food stores (excluding drug and convenience stores),
operated under any trade name by Albertson's or any of its affiliates which do not have an in-store pharmacist ("traditional stores"). Fees in Albertson's Agreement will apply to all
existing and future food stores, operated under any name by Albertson's or any of its affiliates, which includes a pharmacist ("combo stores"; the traditional stores and combo stores being herein
collectively referred to as "supermarkets"). Fees in Sav-On Agreement will apply to all drug stores operated under any trade name by Albertson's or any of its affiliates. The term "drug
store" shall not include a drug or pharmacy department located within a combo store. 

    Note: The fees for combo store #6046 Rainbow & Charleston (Lucky #121-787) shall be determined by the Albertson's agreement but shall be calculated as if there were
only fifteen (15) machines in such stores.

 

    B.  License
fees for the option term will be the same as currently set forth in the agreements. 

    C.  License fees for the period commencing February 1, 2000 and ending June 30, 2003 (June 30, 2004 if the initial term is extended pursuant to
Item 2 above) will be adjusted as follows:

 

    Northern
Nevada: The fees for Albertson's #149, #151 and #175 will be based on actual number of machines (15) in each supermarket. 

    Fees
for all supermarkets (with or without a pharmacy) located or to be opened in Reno/Sparks/Carson City will be reduced to RCT from the fee schedule set forth in the Albertson's
Agreement. 

    Fees
for the supermarkets located or to be opened in Elko and Winnemucca will be reduced RCT from the fee schedule set forth in the Albertson's Agreement. 

    Southern
Nevada: Fees for traditional stores located or to be opened in Las Vegas metropolitan area will be based on the fee schedule set forth in the Lucky's Agreement subject to a
RCT reduction in monthly fees for each store. 

    For all combo stores opened in the Las Vegas metropolitan area on or after December 1, 1999, the license fee per machine per month will be reduced RCT from the fees set forth
in the Albertson's Agreement for the balance of the initial term. In the event Cardivan exercises its option to extend the agreement for the option term, all amounts associated with the RCT reduction
in fees attributable to the new combo stores (and without any reduction whatsoever for

the RCT adjustment in fees set forth in Items 1 and 2 of the "Additional Provisions" described in Exhibit "C" to Albertson's Agreement) will be repaid to Albertson's with interest at an annual rate of
RCT either (i) in a lump sum on the first day of the option term, or (ii) over the duration of the option term in accordance with terms mutually agreed by the parties. In the event
Cardivan fails to exercise the option term, no repayment will be required. 

    Note:
The RCT adjustment set forth above will not affect the provision in Albertson's Agreement providing for license fees during the RCT year of operation of any combo store to be
reduced to RCT of the stipulated rate (as adjusted herein). 

    Sav-On: Fees for all drug stores located or to be opened in the state of Nevada will be reduced to RCT per machine per month. If the initial term is extended through
June 30, 2004, the license fee per machine per month for the period July 1, 2003 through June 30, 2004 will be RCT.

 

    D.  Notwithstanding anything to the contrary in Items 5.A.—5.C. above, in the event Cardivan or any of its affiliates is party to any agreement with Raley's
or any of its affiliates which provides for the payment of rent or license fees for combo stores located in the Las Vegas metropolitan area greater than the license fees set forth in this agreement
for Albertson's combo stores located in Las Vegas metropolitan area, the license fees set forth in this agreement for such stores without regard to temporary adjustment, reductions, or abatements
otherwise provided in either the Albertson's Agreement or this

agreement (e.g., the RCT reduction or RCT adjustment in fees described in Item 5.C. above) shall be automatically adjusted from time to time to equal the greater of (i) the license fees set
forth in this agreement for such stores, and (ii) the rent or license fees paid to Raley's or its affiliates for such stores.

    6.  Cardivan
will have the right to reduce the number of machines in each Sav-On drug store (new or existing) from RCT to a minimum of RCT machines. Once a
reduction is made, Cardivan will have no right to increase the number of machines without Albertson's consent and all excess space will be relinquished to Albertson's for use in Albertson's
operations. 

    7.  Cardivan will have the right to close gaming operations in the Sav-On drug stores during the "graveyard" shift (approximately 11:00 p.m. to
7:00 a.m.) with no adjustment in license fees.

 

    8.  In the event Albertson's in any six (6) month period during the period starting December 1, 1999 and ending June 30, 2004 sells to an unrelated
third party a minimum of either 15 supermarkets or 25 drug stores in which gaming is permitted and which are located in the state of Nevada (net of any stores which are sold to an
unrelated third party who either [i] assumes Albertson's agreement with Cardivan for such stores, [ii] enters into a new agreement with Cardivan for the
operation of gaming devices in such stores, or [iii] is party to an agreement granting Cardivan or any of its affiliates the right to operate gaming devices in such stores),
Albertson's agrees to Cardivan the net present value (assuming a 7.00% discount rate) of 30% of the license fees that would otherwise have been paid by Cardivan for such stores had the stores remained
open calculated from the date of closing/sale to June 30, 2004.

    9.  In
the event Albertson's elects to operate gaming devices in any convenience stores associated with its fuel center facilities located in the state of Nevada
("convenience stores"), Cardivan shall have the exclusive right to such gaming operations during the term of the Albertson's Agreement (as revised herein). Cardivan will have the option to put a
maximum of RCT machines in each convenience store. The minimum number of machines permitted in convenience stores located in the Reno/Sparks/Carson City area will be RCT; for convenience stores
located in the Las Vegas metropolitan area, the minimum will be RCT; and for all other areas, the minimum will be mutually determined by the parties. Once a decision is made, Cardivan will have no
right to increase the number of machines without Albertson's consent and all excess space will be relinquished to Albertson's for use in Albertson's operations. The license fees for convenience stores
will be RCT per machine per month during the initial term and RCT per machine per month during the option term. Albertson's will provide all change people required for the operation of gaming devices
in such stores. 

    10. Effective December 1, 1999, the balance of the security deposits under both the Lucky and Albertson's Agreements in the aggregate amount of RCT will be
applied to Albertson's/Lucky's/Sav-On's license fees.

    11. The nonrefundable fee in the amount of RCT under the Albertson's Agreement will be prorated from July 1, 1999 through June 30, 2005, and the prorata
amount for the period attributable to the period after Cardivan vacates all of the 15 stores sold to Raley's shall be applied to Albertson's/Lucky's/Sav-On's license fees effective as of
the vacating date. For the purpose of this Item 11, Cardivan shall not be deemed to have vacated the stores during such period of time as Cardivan or any of its affiliates have the right to operate
gaming devices in such stores pursuant to a separate agreement with Raley's or any of its affiliates.

 

    12. Effective December 1, 1999, Albertson's will credit to the Albertson's/Lucky's/Sav-On license fees an amount equal to the store closure allowance
(approximately RCT) currently allowed under Albertson's Agreement and attributable to the period of closure for the 15 stores sold to Raley's subject to Cardivan's agreement to repay, and indemnify
Albertson's against, any portion of such amount which the court orders be paid to Raley's or any other party.

 

    13. Albertson's
agrees to give Cardivan a credit against the Albertson's/Lucky/Sav-On license fees for any portion of the license fees already paid to
Albertson's (and not otherwise paid or reimbursed to Cardivan) for the period after the date of the sale to Raley's which the court orders (or absent an order by the court, Cardivan, Raley's and
Albertson's agree) are not required to be paid to Raley's or to any other person on Raley's behalf. 

    14. Effective
as of the date Cardivan vacates the 15 stores sold to Raley's, Albertson's agrees to credit Cardivan's license fees for the
Albertson's/Lucky/Sav-On stores with an amount, not to exceed RCT, equal to the unamortized portion of the license taxes/permit fees paid by Cardivan to local and/or state governmental
authorities prior to February 1, 2000 for the 15 stores sold to Raley's. 

    15. Cardivan
shall vacate the 15 stores sold to Raley's by February 1, 2000 unless otherwise agreed in writing by Raley's on terms which will not subject
Albertson's to liability for any such extension beyond February 1, 2000 (including any claim by United Coin against Raley's which could be pursued against Albertson's under the terms of the
Asset Purchase Agreement or otherwise or any claim by Raley's for amounts described in Items 10, 11, 13 or 14 which have been credited to license fees due under Albertson's Agreement as revised
herein). 

    16. Cardivan
agrees to dismiss the Action against Albertson's with prejudice, with both parties to pay their respective costs and attorneys' fees. Because both parties
shared confidential information with the other party's outside counsel in negotiating the settlement of the Action, Cardivan will ensure that neither Don Campbell or his firm, nor Sheldon Camhy or his
firm, will represent Anchor Coin against Albertson's regarding any claim made or that could have been made in the Action or in United Coin Machine Co. v. Cardivan Co., et al., Case #A408506, pending
in District Court, Clark County, Nevada; and Albertson's will ensure that neither Keith Rooker or his firm will represent Raley's against Cardivan regarding any claim made or that could have been made
in the Action or in United Coin Machine Co. v. Cardivan Co., Case #408506, pending in District Court, Clark County, Nevada ("the United Action"). Upon the execution of this Settlement Agreement by all
parties, Cardivan will
prepare and execute a stipulation and order of dismissal of its claims against Albertson's which will be held in escrow by Albertson's counsel pending negotiations with Raley's, Anchor Coin and United
Coin. The stipulation may be filed under seal by Albertson's counsel on 24 hours written notice to Cardivan's counsel. 

    17. Albertson's
and Cardivan will use reasonable efforts to encourage Raley's to permit Cardivan to operate in Raley's stores in Clark County, Nevada, and to encourage
United Coin, Anchor Coin and Raley's to settle all claims made or that could have been made in the pending federal or state lawsuits. 

    18. Albertson's
agrees not to assert, and hereby waives, any claims against Cardivan arising out of the transactions or occurrences stated in the Action or the United
Action. Cardivan agrees not to assert, and hereby waives, any claims against Albertson's arising out of the transactions or occurrences 

stated in the Action or the United Action. Neither Cardivan nor Albertson's waive, release or settle any claims arising (a) out of this Settlement Agreement; or (b) under the Albertson's
Agreement, the Lucky Agreement, or the Sav-On Agreement which do not arise out of the transactions or occurrences stated in the Action or the United Action. 

    19. The
parties hereto agree to keep the terms of this agreement confidential and not to disclose same except by reason of court order or as required by statute or
regulation after prior notice to the other party. The parties further agree to keep the fact of this settlement confidential to allow negotiations with Raley's and United Coin and that before any
party hereto discloses the existence of this agreement they will give prior notice of at least twenty-four hours to the other party. 

	ALBERTSON'S INC,	 	JACKPOT ENTERPRISES INC.
	
By:	
 	

/s/ WILLIAM H. ARNOLD   
 Name: William H. Arnold

Title: Vice President	
 	

By:	
 	

/s/ DON R. KORNSTEIN   
 Name: Don R. Kornstein

Title: President & Chief Executive Officer
	
AMERICAN DRUG STORES INC.	
 	

CARDIVAN COMPANY
	
By:	
 	

/s/ WILLIAM H. ARNOLD   
 Name: William H. Arnold

Title: Vice President	
 	

By:	
 	

/s/ GEORGE CONGDON   
 Name: George Congdon

Title: President
	
LUCKY STORES INC.	
 	

CARDIVAN COMPANY
	
By:	
 	

/s/ WILLIAM H. ARNOLD   
 Name: William H. Arnold

Title: Vice President	
 	

By:	
 	

/s/ GEORGE CONGDON   
 Name: George Congdon

Title: President
	
CAMPBELL & WILLIAMS
 As to paragraph 16 only:	
 	

 	
 	

 
	

By:	
 	

/s/ DONALD CAMPBELL   
 Donald Campbell

Partner

	
 	

 	
 	

 

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EXHIBIT 10.17

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