Document:

VGR-12.31.13-EX10.42

RESTRICTED SHARE AWARD AGREEMENT
PURSUANT TO THE VECTOR GROUP LTD.
AMENDED AND RESTATED 1999 LONG-TERM INCENTIVE PLAN

THIS RESTRICTED SHARE AWARD AGREEMENT, effective as of October 28, 2013 (the “Agreement”), by and between Vector Group Ltd., a Delaware corporation (the “Company”), and Ronald J. Bernstein (the "Executive").

WITNESSETH:

A.    WHEREAS, the Executive serves as President and Chief Executive Officer of Liggett Vector Brands LLC and Liggett Group LLC, indirect wholly-owned subsidiaries of the Company, pursuant to an employment agreement dated as of November 11, 2005 (the “Employment Agreement”), which has been amended on January 14, 2011 and October 28, 2013 and
B.    WHEREAS, the Company highly values the services of the Executive and therefore desires to retain and motivate the Executive by awarding him an additional equity interest in the Company, which interest shall be subject to the restrictions on vesting and transferability hereinafter set forth;
NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the Company and the Executive hereby agree as follows:

1.    Share Award.

Subject to the terms and conditions of this Agreement, the Company hereby grants to the Executive 27,500 shares (collectively, the “Award Shares”) of its Common Stock, $.10 par value per share (the “Common Stock”), pursuant to the Company’s Amended and Restated 1999 Long-Term Incentive Plan as in effect and amended from time to time (the “Plan”).  Except to the extent otherwise provided herein, all Award Shares shall vest in the Executive (i) on March 15, 2019, if 

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Liggett’s Adjusted EBIT for the five-year period ending December 31, 2018 equals or is more than $1.15 billion or (ii) on October 31, 2020, if Liggett’s Adjusted EBIT does not equal or exceed $1.15 billion for the five-year period ending December 31, 2018. For purposes of this Agreement, Adjusted EBIT shall mean Earnings Before Interest and Taxes for Liggett Group LLC (SEC reporting), including the conventional cigarette business of Vector Tobacco, after giving effect to all annual and long-term bonus payments; adjusted for extraordinary, unusual or non-recurring items; effects of changes in tax law, accounting principles or other such laws or provisions affecting reported results; impairment of tangible or intangible assets; litigation or claim judgments or settlements; non-operating items; productivity initiatives or new business initiatives approved by the Company’s Board; and effects of acquisitions, assets sales or divestitures. 

2.    Issuance; Transfer Restrictions.

Certificates for the Award Shares shall be issued in the name of the Executive as soon as practicable after the date hereof, provided the Executive has (i) executed appropriate blank stock powers and any other documents which the Company may reasonably require and (ii) delivered to the Company a check for $2,750, representing the par value of the Award Shares.  The certificates for the unvested Award Shares shall be deposited, together with the stock powers, or other documents required by the Company, with the Company.  Except to the extent provided in Section 7 hereof or as otherwise provided by the terms of this Agreement, upon deposit of such unvested Award Shares with the Company, the Executive shall have all of the rights of a shareholder with respect to such shares, including the right to vote the shares and to receive all dividends or other distributions, if any, paid or made with respect to such shares.  Upon vesting of any portion of the Award Shares, the Company shall cause a stock certificate for such shares to be delivered to the Executive.  No interest in this Agreement or in any portion of the Award Shares may be sold, transferred, assigned, pledged, encumbered or otherwise alienated or hypothecated, nor shall certificates for any Award Shares be delivered to the Executive, except to the extent of any portion of the Award Shares that has vested in the Executive in accordance with the terms hereof.  

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3.    Certificates Legended.

In addition to any legend required by Section 8.1 of the Plan, the Executive acknowledges that certificates for the Award Shares shall bear a legend to the following effect:

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THEY MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SUCH ACT, AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.”
        
The Company shall enter in its records a notation of the foregoing legend and of the restrictions on transfer provided therein.

4.    Termination of Employment.

Except to the extent provided in Section 5 hereof, in the event the Executive’s employment with the Company or one of its subsidiaries is terminated for any reason, any remaining balance of the Award Shares not theretofore vested shall be forfeited by the Executive and transferred back to the Company, without payment of any consideration by the Company and the Executive shall have no further rights under this Agreement.  

5.    Vesting.

In the event of (i) the death or Disability of the Executive or (ii) the occurrence of a Change of Control of the Company, any remaining balance of the Award Shares not theretofore vested in the Executive, in accordance with Section 1 hereof, shall vest immediately in the Executive.  

For purposes of this Agreement, the term “Change of Control” shall have the meaning defined in Section 6(f) of the Amended and Restated Employment Agreement dated as of January 27, 2006, by and between Howard M. Lorber and the Company, regardless of whether the Employment Agreement is then in effect (the "Employment Agreement"), other than any Change in Control arising by reason of a testamentary bequest by Bennett S. LeBow to or for the benefit of his surviving spouse of any or all securities of the Company beneficially owned by him as of the date of death, so long as, following the bequest, the event referenced in Section 6(f)(ii) of the Employment Agreement shall not have occurred.
 

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6.    Adjustment of Award Shares.

In the event of any change in the number of outstanding shares of the same class of shares of the Company as the Award Shares by reason of a stock dividend, recapitalization, merger, consolidation, split-up, spin-off, split-off, subdivision, contribution or exchange of shares, or the like, the aggregate number and kind of Award Shares shall be proportionately adjusted by the Company.

7.    Dividend Payments.

With respect to any unvested portion of the Award Shares, the Executive shall be entitled to receive all dividends or other distributions, if any, that would otherwise have been paid or made with respect to such Award Shares had such unvested portion been vested in the Executive as of the record date for such dividend or other distribution.  . 

8.    Limitations.

Nothing in this Agreement shall be construed to provide the Executive any rights whatsoever with respect to the Award Shares except as specifically provided herein, or constitute evidence of any agreement or understanding, express or implied, that the Company or one of its subsidiaries shall continue to employ the Executive other than as provided in the Employment Agreement.

9.    Investment Intent.

The Executive is acquiring the Award Shares solely for his own account for investment and not with a view to or for sale in connection with any distribution of the Award Shares or any portion thereof and not with any present intention of selling, offering to sell or otherwise disposing of or distributing the Award Shares or any portion thereof in any transaction other than a transaction registered under or exempt from registration under the Securities Act of 1933, as amended.  The Executive further represents that the entire legal and beneficial interest of the Award Shares shall be held (subject to the terms hereof) for the Executive's account only and neither in whole or in part for any other person.

10.    Tax Withholding.

The Company may, in its discretion, require the Executive to pay to the Company, at the time any portion of the Award Shares vests in the Executive or any amounts are paid under Section 7, an amount that the Company deems necessary to satisfy the obligations of the Company or one of its subsidiaries to withhold federal, state or local income or other taxes incurred by reason thereof.

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11.    Incorporation by Reference; Plan Document Receipt.  

This Agreement is subject in all respects to the terms and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the award provided hereunder), all of which terms and provisions are made a part of and incorporated in this Agreement as if they were expressly set forth herein.  Any capitalized term not defined in this Agreement shall have the same meaning as is ascribed thereto in the Plan.  The Executive hereby acknowledges receipt of a true copy of the Plan and that the Executive has read the Plan carefully and fully understands its content.  In the event of a conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.  

12.    Miscellaneous.

a.    The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

b.    All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or overnight delivery service or mailed within the continental United States by first class, certified mail, return receipt requested, to the applicable party and addressed as follows:

if to the Company:

Vector Group Ltd.
4400 Biscayne Boulevard
10th Floor
Miami, Florida 33137

Attn: Marc N. Bell    
         Vice President and General Counsel

if to the Executive:

Ronald J. Bernstein
Liggett Vector Brands LLC
3800 Paramount Parkway
Morrisville, NC  27560

Addresses may be changed by notice in writing signed by the addressee.

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c.    This Agreement shall not entitle the Executive to any preemptive rights to subscribe to any securities of any kind hereinafter issued by the Company.

d.    This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on the Executive herein set forth, be binding upon and inure to the benefit of the Executive, his heirs, executors, administrators, successors and assigns.

e.    This Agreement contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements or prior understandings, whether written or oral, between the parties relating to such subject matter.  The Board or the Committee shall have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided in the Plan; provided, however, that no such modification or amendment shall materially adversely affect the rights of the Executive under this Agreement without the consent of the Executive.  The Company shall give notice to the Executive of any such modification or amendment of this Agreement as soon as practicable after the adoption thereof.  This Agreement may also be modified or amended by a writing signed by both the Company and the Executive.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

	
			
	 
	VECTOR GROUP LTD.

	 
	 

	 
	By:
	/s/ J. Bryant Kirkland III  

	 
	 
	J. Bryant Kirkland III 

	 
	 
	Vice President, Treasurer and Chief Financial Officer 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	/s/ Ronald J. Bernstein 

	 
	 
	Ronald J. Bernstein

	 
	 
	 

	 
	 
	 

    

6VGR-12.31.13-EX10.48

SETTLEMENT AGREEMENT 
AND MUTUAL RELEASE
THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE (“Settlement Agreement”) is made as of the 13th day of December, 2013 by and among: (i) PRUDENTIAL REAL ESTATE FINANCIAL SERVICES OF AMERICA, INC. (“Prudential”) and (ii) DOUGLAS ELLIMAN REALTY, LLC (the “Company”); DOROTHY HERMAN; DTHY REALTY, INC.; NEW VALLEY REAL ESTATE LLC (f/k/a and named as NEW VALLEY REAL ESTATE CORPORATION in the Arbitration); NEW VALLEY MORTGAGE LLC (f/k/a and named as NEW VALLEY MORTGAGE CORPORATION in the Arbitration); HOWARD M. LORBER and RICHARD J. LAMPEN (collectively, “Douglas Elliman”). Prudential and Douglas Elliman shall be collectively referred to herein as the “Parties.”
WHEREAS, on or about January 9, 2013, Prudential commenced an Arbitration against Douglas Elliman, AAA Case No. 13 115 00077 13, by filing with the American Arbitration Association a demand for arbitration and Statement of Claim seeking certain forms of relief (the “Arbitration”), and, on the same day, Prudential sent a letter demanding that the Company purchase Prudential’s 20.59% membership interest in the Company (the “Interest”) in accordance with Section 15.5 of the Douglas Elliman Realty, LLC Operating Agreement, dated December 17, 2002, as amended (the “Operating Agreement”); 
WHEREAS, on or about February 8, 2013, Douglas Elliman filed a response to Prudential’s original Statement of Claim;
WHEREAS, the Parties subsequently amended their respective pleadings in the Arbitration;
WHEREAS, certain entities owned by or otherwise affiliated with the Company have been named as defendants in an action entitled BRER Affiliates LLC v. Douglas Elliman Commercial, LLC, et al., Case No. 30-2013 00666361 CU BC CJC (California Superior Court, County of Orange), filed on August 1, 2013 (the “BRER Action); and 

WHEREAS, the Parties now wish to provide for New Valley Real Estate LLC (“New Valley”) to purchase the Interest on the terms set forth below and in the Sale Agreement (as defined below), and settle and resolve all claims that exist or could exist between the Parties through the date hereof to the extent set forth herein.
NOW THEREFORE, in consideration of the mutual agreements, covenants, and conditions contained herein, the Parties hereby agree as follows:
1.MEMBERSHIP INTEREST SALE AGREEMENT. Simultaneously with the execution of this Settlement Agreement, Prudential and New Valley have entered into an Agreement Relating to the Sale and Assignment of Membership Interest pursuant to which New Valley is purchasing Prudential’s Interest in the Company (the “Sale Agreement”).
2.DISMISSAL OF ANY AND ALL CLAIMS WITH PREJUDICE. Immediately following the execution of this Settlement Agreement and the Sale Agreement, and 

consummation of the transactions contemplated thereby (including the payment to Prudential of the Purchase Price, as defined and provided for in the Sale Agreement, and the simultaneous assignment and transfer by Prudential of its entire membership interest in the Company to New Valley, free and clear of all liens, claims and encumbrances), Prudential shall dismiss with prejudice all claims that were brought in the Arbitration. The Parties further agree that each of them shall bear their own fees and costs in connection with the Arbitration and this matter.  Notwithstanding the dismissal of all of the Arbitration claims by Prudential, none of the Parties is releasing or waiving any claims, actions, causes of action, charges or defenses it may have arising out or relating to the BRER Action.  
3.RELEASES AND INDEMNIFICATION.
3.1    Prudential, for and in consideration of good and valuable consideration received from Douglas Elliman, the receipt and sufficiency of which Prudential hereby acknowledges, for itself and for its administrators, trustees, guardians, agents, representatives, parents, subsidiaries, affiliates, related entities, attorneys, beneficiaries, predecessors, successors and assigns (Prudential together with all of the foregoing, individually and collectively, the “Prudential Releasors”), does (except (i) for any claim based on a Third Party Claim (as defined in Section 3.4 below) against Prudential, and (ii) for the obligations undertaken by Douglas Elliman pursuant to this Settlement Agreement and by New Valley pursuant to the Sale Agreement) hereby remise, acquit, satisfy, discharge and forever release Douglas Elliman, their present and former parents, subsidiaries, affiliates, related entities, employees, managers, members, shareholders, officers, directors, agents, representatives, predecessors, heirs, successors, attorneys and assigns (including Douglas Elliman Florida LLC) (Douglas Elliman together with all of the foregoing, the “Douglas Elliman Releasees”) of and from any and all manner of action and actions, cause and causes of action, charges, suits, rights, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims, obligations, liabilities, and demands of any kind or nature whatsoever, at law or in equity, which any of the Prudential Releasors may have had, ever had, claim to have had, now has, or which any of the Prudential Releasors or their heirs, executors, administrators, predecessors, successors or assigns hereafter can, shall or may have against any or all of the Douglas Elliman Releasees in connection with, arising out of or relating to, directly or indirectly, (a) the Operating Agreement, (b) any act or failure to act by any member, manager or other party under the Operating Agreement, (c) any matter asserted in the Arbitration, (d) any franchise agreement (or document delivered in connection therewith) between The Prudential Real Estate Affiliates, Inc. (“PREA”) and Douglas Elliman, LLC, B&H Associates, LLC, B&H of the Hamptons, LLC, Douglas Elliman Commercial, LLC and/or any other Douglass Elliman Releasee (“Franchise Agreements”) and (e) any decision made in connection with any of the foregoing ((a) through (e) collectively, the “Released Matters”).   

3.2    Douglas Elliman, for and in consideration of good and valuable consideration received from Prudential, the receipt and sufficiency of which Douglas Elliman hereby acknowledges, for itself and for its administrators, agents, representatives, parents, subsidiaries, affiliates, related entities, predecessors, successors and assigns (Douglas Elliman 

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together with all of the foregoing, individually and collectively, the “Douglas Elliman Releasors”), does (except for the obligations undertaken by Prudential pursuant to this Settlement Agreement and/or the Sale Agreement) hereby remise, acquit, satisfy, discharge and forever release Prudential, its present and former parents, subsidiaries, affiliates, related entities, employees, managers, shareholders, officers, directors, agents, representatives, predecessors, heirs, successors, attorneys and assigns (Prudential, together with all of the foregoing, the “Prudential Releasees”) of and from any and all manner of action and actions, cause and causes of action, charges, suits, rights, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims, obligations, liabilities, and demands of any kind or nature whatsoever, at law or in equity, which any of the Douglas Elliman Releasors may have had, ever had, claim to have had, now has, or which any of the Douglas Elliman Releasors or their heirs, executors, administrators, predecessors, successors or assigns hereafter can, shall or may have against any or all of the Prudential Releasees in connection with, arising out of or relating to, directly or indirectly, any of the Released Matters.  For the avoidance of doubt, any dispute that has existed, currently exists or hereafter arises among the remaining members of the Company is, as to the Prudential Releasees, a claim that has been released by the Douglas Elliman Releasors pursuant to this Settlement Agreement. 
3.3    Notwithstanding Section 3.1 and 3.2 above, nor any other provision herein, neither the Prudential Releasors nor the Douglas Elliman Releasors are remising, acquitting, satisfying, discharging or releasing, and for the avoidance of doubt, are hereby specifically reserving and retaining, any and all claims, actions, causes of action, charges and defenses they may have against the Douglas Elliman Releasees and the Prudential Releasees, respectively, arising out of or relating to the BRER Action or any claim or defense asserted by any party prior to, on, or after the date hereof in or in connection with the BRER Action.  The foregoing would include, by way of examples, (a) a claim by Prudential resulting from a claim by BRER against Prudential that exposes Prudential to BRER as a result of what Prudential alleges to be improper conduct, by Douglas Elliman Releasees in allegedly violating the Operating Agreement by purporting to terminate the Franchise Agreements and (b) a claim by Douglas Elliman that Prudential Releasees allegedly acted improperly by selling PREA or abandoning or diminishing the use of the “Prudential” name in connection with the real estate brokerage business.  In the event of a claim brought pursuant to this Section 3.3, the prevailing party shall be entitled to reimbursement of reasonable attorneys’ fees and costs incurred in connection with the resolution thereof.  In the event that Douglas Elliman should hereafter deliver to Prudential a release by BRER of Prudential of all claims arising out of or relating to the BRER action, then this Section 3.3 shall be of no further force or effect and the carve-outs of the Section 3.1 and Section 3.2 releases contained in this Section 3.3 shall be deemed released pursuant to Section 3.1 and Section 3.2.
3.4    (a) The Company shall indemnify, defend and hold harmless each of the Prudential Releasees from and against all claims and demands made by a third party (not related to or affiliated with any Party herein) against any Prudential Releasee (a “Prudential Indemnitee”) that arise from or relate to the operation of the business of the Company (a “Third Party Claim”).  

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(b) A Prudential Indemnitee shall provide written notice to the Company of the general nature of a claim for indemnification hereunder, provided that failure to give such notification promptly shall not affect the indemnification provided hereunder except to the extent that the Company shall have been actually materially prejudiced as a result of such failure.  The Company may assume the defense of the Third Party Claim unless the Company fails to provide reasonable assurance in writing, upon request, to the Prudential Indemnitee of the Company’s financial capacity to defend such Third Party Claim and provide indemnification with respect thereto.    Unless, within 30 days after receiving notice of the claim for indemnification the Company disputes or reserves rights with respect to the claim for indemnification, (i) it shall be conclusively established for purposes of this Settlement Agreement that the Company is obligated to and shall indemnify and hold harmless the Prudential Indemnitee from, against and in respect of, and shall pay and reimburse the Prudential Indemnitee for, all losses incurred or suffered by the Prudential Indemnitee to the extent resulting from, or arising out of the Third Party Claim, and (ii) all expenses incurred by the Prudential Indemnitee as a result of the Company failing to timely assume the defense of the Prudential Indemnitee in accordance with the terms hereof shall be reimbursed by the Company to the Prudential Indemnitee.  
(c) Upon accepting the obligation to provide indemnification for a Third Party Claim, the Company shall select counsel, subject to the approval of the Prudential Indemnitee, not to be unreasonably withheld or delayed. In no event shall the Company consent to the entry of judgment, admit any liability with respect to, or settle, compromise or discharge, a Third Party Claim without the Prudential Indemnitee’s prior written consent and in no event shall any Prudential Indemnitee consent to the entry of judgment, admit any liability with respect to, or settle, compromise or discharge, a Third Party Claim without the Company’s prior written consent.  The Prudential Indemnitee shall have the right, but not the obligation, to participate in the defense of the Third Party Claim, including the opportunity to participate in any discussions or correspondence with any governmental authority and to employ counsel separate from the counsel employed by the Company.  The Prudential Indemnitee shall participate in any such defense at its own expense unless (A) the Company and the Prudential Indemnitee are both named parties to the proceedings and the Prudential Indemnitee shall have concluded in good faith that representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them or the availability to the Prudential Indemnitee of one or more defenses or counterclaims that are inconsistent with one or more of those that may be available to the Indemnifying Party in respect thereof or (B) the Prudential Indemnitee assumes the defense of a Third Party Claim after the Company has failed to diligently defend a Third Party Claim it has assumed.  The Company and the Prudential Indemnitee shall cooperate, and cause their respective affiliates to cooperate, in the defense or prosecution of a Third Party Claim.   
(d) If the Company fails to accept the indemnification obligation for a Third Party Claim, the Prudential Indemnitee shall have the right (subject to the second sentence of paragraph 3.4(c) above) but not the obligation to control its own defense, it being understood that the Prudential Indemnitee’s right to indemnification for such Third Party Claim shall not be adversely affected by assuming the defense of such Third Party Claim.  

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(e) Third Party Claims shall not include and there shall be no obligation of the Company to indemnify, defend or hold harmless any Prudential Releasee from and against, (i) any claim arising from, relating to or asserted in connection with the BRER Action, (ii) any claim arising from or relating to the sale or transfer of equity of PREA, (iii) the termination of any of the Franchise Agreements.  Additionally, a Third Party Claim shall not include any claim made by any federal, state or local tax authority and the Company shall have no obligation to indemnify, defend or hold harmless any of the Prudential Releasees as a result of any adjustment to any item of income, gain, deduction, expense or loss imposed upon the Company or any Prudential Releasee by any federal, state or local tax authority or a claim by any such tax authority that any item of income, gain, deduction, expense or loss of the Company or any Prudential Releasee is required to be adjusted. Each of the Parties shall bear its own share of any adjustments imposed by any federal, state or local tax authority. 
4.DISTRIBUTION. The Parties agree that payment of the Purchase Price (as defined in the Sale Agreement) represents the total consideration to be paid to Prudential as a result of its ownership and its sale and assignment of its membership interest in the Company.  Accordingly, Prudential shall not be entitled to any further distributions or payments of any kind from the Company (other than payment of the Purchase Price, as defined in the Sale Agreement, or any indemnification payments pursuant to Section 3.4), whether in the nature of cash flow distributions, tax distributions or otherwise and Prudential waives any claim to any such payments or distributions under the Operating Agreement or otherwise.
5.NO ADMISSION OF LIABILITY. The Parties acknowledge and agree that this Settlement Agreement has been executed in connection with the compromise and settlement of disputed claims. This Settlement Agreement and the actions taken by the Parties pursuant hereto do not constitute an acknowledgement or admission of liability for any matter or precedent upon which liability may be assessed. Furthermore, the Parties acknowledge and agree that the execution of this Settlement Agreement should not be construed as an admission by any party and has been entered into solely for the purpose of avoiding costly and time-consuming litigation of disputed claims.
6.CONFIDENTIALITY.  Subject to the balance of this Section 6, each of the Parties agrees to keep the terms of this Settlement Agreement confidential and to not disclose the terms to any other person, except:  (i) in connection with the preparation and filing of income tax returns; (ii) in responding to a duly authorized subpoena or order of a court of competent jurisdiction; (iii) as reasonably believed by such Party to be required by any regulatory or self-regulatory agency or organization; (iv) to comply with any applicable law; (v) to any of its employees, consultants, contractors, attorneys, accountants, bankers and/or other advisors who have a “need to know” the terms for what the disclosing Party believes, in good faith, to be legitimate business purposes; and (vi) to evaluate this Settlement Agreement or enforce rights under this Settlement Agreement.  Additionally, without limiting the foregoing, it is understood and agreed that affiliates of Douglas Elliman may (i) disclose the terms of this Settlement Agreement and/or the Sale Agreement in connection with (a) any filings reasonably believed to be necessary to comply with federal or state securities or other regulatory laws or regulations or the rules or regulations of any stock exchange (collectively “Government Filings”), provided that 

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the party intending to make any such disclosure shall consult with the other party prior to making such disclosure with respect to the text thereof, and the parties shall reasonably cooperate with each other concerning any such disclosure, and (b) any press releases limited to such required disclosures and/or (ii) disclose or submit an actual copy of this Settlement Agreement and/or Sale Agreement in connection with any Government Filings.  The Parties agree that Douglas Elliman and its affiliates may be guided by the advice of its counsel and accountants as to what disclosures it will make in order to comply with any applicable laws or regulations (including those of a self-regulatory agency as well as the rules and regulations of any stock exchange).
7.ACKNOWLEDGMENT OF CONSIDERATION. Each Party to this Settlement Agreement agrees and acknowledges that the consideration received by them and for the execution hereof shall constitute full payment, satisfaction, discharge, compromise and release of and from all matters for which the other Party or Parties have released it.
8.FULL CAPACITY. Each of the Parties hereby warrants and represents that each of them has full mental and physical capacity (as to the Parties that are natural persons) and binding authority to enter into, execute, and perform this Agreement, to resolve and compromise any and all claims that are being resolved hereunder and to release one another as provided in Section 3 of this Settlement Agreement.
9.ADVICE OF COUNSEL. Each of the Parties represents that they have determined that this Settlement Agreement is fair and reasonable under all the circumstances and that this determination has been based solely upon their independent judgment after having the opportunity to consult with counsel. In making this determination, each of the Parties has had an adequate opportunity to discuss and assess the merits of all their claims and potential claims against each other.
10.NO ASSIGNMENT. The Parties are the sole and lawful owners of all claims being settled herein. The Parties have not assigned or transferred any of the claims released herein to any other person or entity not bound by this Settlement Agreement.
11.BINDING AGREEMENT. This Settlement Agreement shall be binding upon and inure to the benefit of the Parties, their parent companies, subsidiaries, affiliates, and their heirs, executors, administrators, predecessors, successors and assigns.
12.GOVERNING LAW. This Settlement Agreement is deemed entered into in the State of New York, where the Parties maintain a substantial physical presence, and shall be construed and interpreted in accordance with the laws of the State of New York.
13.ENTIRE AGREEMENT. This Settlement Agreement and the Sale Agreement contain the entire agreement between the Parties hereto. The terms of this Settlement Agreement and the Sale Agreement are contractual and may not be modified orally except by a written instrument duly signed by each and every Party.
14.SUPERSEDES PRIOR AGREEMENT. Except as expressly provided herein, this Settlement Agreement and the Sale Agreement fully and completely supersede in their 

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entirety any prior agreement(s) that the Parties may have entered into, as well as any and all other prior agreements, understandings, rights and/or obligations undertaken by the Parties with respect to all matters addressed herein.
15.ARBITRATION. The Parties hereby agree that any controversy, difference, dispute, or claim arising out of or relating, directly or indirectly, to this Settlement Agreement (but not the Sale Agreement), including, but not limited to, the interpretation or breach of this Settlement Agreement, shall be governed by the arbitration provision contained in Section 20 of the Operating Agreement.
16.NOTICES. All notices, consents, demands, or other communications required or permitted to be given pursuant to this Settlement Agreement shall be deemed sufficiently given when delivered during business hours to the appropriate location described below or three business days after the posting thereof by United States first class, registered or certified mail, return receipt requested, with postage fee prepaid and addressed as follows:
	
		
	Prudential:
	The Prudential Real Estate Financial Services of America, Inc.
c/o Prudential Capital Group
100 Mulberry Street, Gateway Center Three, Floor 18, NJ-05-18-03
Newark, NJ  07102-4077
Attn:  Paul H. Procyk, Senior Vice President

and

c/o Prudential Capital Group 
4 Embarcadero Center, Suite 2700 
San Francisco, CA 94111
Attn: James Evert

	 
	 

	Douglas Elliman:
	Douglas Elliman Realty, LLC
575 Madison Avenue
New York, NY  10022
Attn:  Kenneth I. Haber, Executive Vice President and General Counsel 

With a copy to:

Brian K. Ziegler, Esq.
Certilman Balin Adler & Hyman, LLP
90 Merrick Avenue
East Meadow, NY  11554

Any Party may change its address for notice or other communications at any time by furnishing notice to the other Parties in the manner described above.

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17.NO CONSTRUCTION AGAINST ANY PARTY. Each of the Parties has participated in the drafting of this Settlement Agreement and it shall be deemed as jointly drafted. Therefore, the language of this Settlement Agreement shall not be presumptively construed in favor of or against any Party hereto.
18.COUNTERPARTS. This Settlement Agreement may be signed in counterparts, each of which shall be deemed an original.  Signatures hereto which are transmitted via fax or PDF shall be deemed original signatures.
The Parties further confirm and state that they have carefully read this Settlement Agreement, acknowledge, understand and agree to the terms hereof and sign their names as their own free act.
WITNESS our hands and seals at the place and on the date indicated below.
PRUDENTIAL REAL ESTATE FINANCIAL SERVICES OF AMERICA, INC.
By:   /s/ Paul H. Procyk                       
Name: Paul H. Procyk
Title: Vice President
Dated: December 13, 2013

DOUGLAS ELLIMAN REALTY, LLC
By:                        
Name:
Title:
Dated: December 13, 2013

DOROTHY HERMAN

By:   /s/ Dorothy Herman            
Name:  Dorothy Herman
Dated: December 13, 2013

DTHY REALTY, INC.

By:   /s/ Dorothy Herman                 
Name: Dorothy Herman 
Title:    President
Dated: December 13, 2013

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NEW VALLEY REAL ESTATE LLC

By:  /s/ Howard M. Lorber            
Name:  Howard M. Lorber
Title:    Manager
Dated: December 13, 2013

NEW VALLEY MORTGAGE LLC

By:  /s/ Howard M. Lorber            
Name:  Howard M. Lorber
Title:    Manager
Dated: December 13, 2013

HOWARD M. LORBER

By:  /s/ Howard M. Lorber            
Name: Howard M. Lorber
Dated: December 13, 2013

RICHARD J. LAMPEN

By:  /s/ Richard Lampen            
Name:  Richard Lampen
Dated: December 13, 2013

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}]]