Document:

Prepared by MERRILL CORPORATION

Exhibit 10.7  

      SENIOR EXECUTIVE RETENTION AGREEMENT

    THIS
AGREEMENT ("Agreement"), by and between ALADDIN GAMING, LLC a Nevada limited liability company (the "Company"), and Patricia Becker (the "Executive"). 

WITNESSETH: 

    WHEREAS,
the Company and Executive entered into that certain employment agreement dated July 27, 2000 ("Employment Agreement"), and has determined that the Executive is a key
executive of the Company and it is the desire of the Company to assure itself of the availability of the services of the Executive and to provide assurances to the Executive of employment in the event
of the commencement of a Chapter 11 case for the Company or in the event of a Change of Control (collectively an "Event"); 

    WHEREAS,
in the event that there occurs an Event, the Company believes it imperative that the Company be able to rely upon the Executive to continue in her position and, if required,
to assess any proposal or transaction which would cause an Event and advise management and the Company as to whether such proposal or transaction would be in the best interest of the Company and its
members, free from concern that her recommendations may adversely affect her continued employment: 

    NOW,
THEREFORE, to assure the Company that it will have the continued dedication of the Executive and the availability of her advice and counsel notwithstanding the possibility,
threat or occurrence of an Event and to induce the Executive to remain in the employ of the Company, and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are
hereby acknowledged, the Company and the Executive agree as follows: 

    1.  Services During Certain Events. The Executive agrees that she will not voluntarily leave the employ of the Company
and will continue to render services to the Company as provided in the Employment
Agreement until the later of 18 months from the date of this Agreement or an Event Completion, as hereinafter defined ("Expiration Date"), provided, however, if no Event occurs within
18 months from the date of this Agreement, the Expiration Date shall be 18 months from the date of this Agreement. In the event the Employment Agreement terminates prior to the
Expiration Date, then the Employment Agreement shall be extended through the Expiration Date unless otherwise terminated as provided therein. 

    2.  Incentive Bonus Payments. From the date of this Agreement until the earlier of (a) the Expiration Date,
(b) the date the Company terminates the Executive with Cause or (c) the Executive quits the employ of the Company without Good Reason, the Company shall pay Executive, in addition to the
Base Salary pursuant to the Employment Agreement, less customary payroll deductions, the following bonus(es): 

	(i)
	If,
for the calendar year 2001, the Company achieves $63 million in EBITDA (as defined and computed in accordance with the Company's Credit
Agreement, dated February 26, 1998, (collectively, as amended, "Credit Agreement")), Executive shall be paid a bonus equal to 15% of the Executive's then-existing annual base
salary, payable on or before March 31, 2002;

	(ii)
	For
the calendar year 2002,

	a.
	If,
for the First Quarter 2002, the Company achieves "EBITDA" equal to or greater than the Company's "fixed charges" (both terms as defined and computed in accordance with the
Credit Agreement) for that quarter, then the Company shall pay Executive a bonus equal to 5% of Executive's then-existing annual base salary, payable on or before 45 days after the
end of that calendar quarter;

	b.
	If,
for the Second Quarter 2002, the Company achieves "EBITDA" equal to or greater than the Company's "fixed charges" (both terms as defined and computed in accordance 

 

with
the Credit Agreement) for that quarter, then the Company shall pay Executive a bonus equal to 10% of Executive's then-existing annual base salary, payable on or before 45 days
after the end of that calendar quarter; 

	c.
	If,
for the Third Quarter 2002, the Company achieves "EBITDA" equal to or greater than the Company's "fixed charges" (both terms as defined and computed in accordance with the
Credit Agreement) for that quarter, then the Company shall pay Executive a bonus equal to 15% of Executive's then-existing annual base salary, payable on or before 45 days after the
end of that calendar quarter; and

	d.
	If,
for the entire Year 2002, the Company achieves "EBITDA" for the entire Year 2002 equal to or greater than the Company's "fixed charges" (both terms as defined and computed in
accordance with the Credit Agreement) for the entire Year 2002, then the Company shall pay Executive a bonus equal to 50% of Executive's then-existing annual base salary, less the amounts,
if any, previously paid to the Executive pursuant to Sections 2(ii)(a), (b) and/or (c), such net amount to be paid on or before 90 days after the end of that calendar quarter. 

    3.  Retention Bonus Payment. If there is an Event prior to the Expiration Date, then upon the Payment Date, the Company
shall pay to the Executive as compensation for services rendered to the Company cash in an amount equal to three (3) times her then-existing aggregate annual base salary, (excluding
bonus or options) less customary payroll deductions; provided, however, the foregoing shall not apply if the Executive has quit without Good Reason or has been terminated by the Company with Cause
prior to the Event's occurrence. 

    4.  Definitions. 

	(a)
	"Cause"
shall mean (i) conviction of a felony, (ii) embezzlement or misappropriation of money or property of the Company, (iii) denial, rejection, suspension or
revocation of any gaming license or permit, (iv) Executive's material breach of Section 6 of the Employment Agreement which material breach has an adverse impact on the Company or
(v) Executive quits without Good Reason, as defined herein.

	(b)
	"Change
of Control" means either: (i) if collectively the Trust under Article Sixth u/w/o Sigmund Sommer and London Clubs International, plc ("London Clubs"), through their
respective subsidiaries own less than 50% of the equity of either the Company and/or Aladdin Gaming Holdings, LLC (for purposes of this section, collectively and/or individually hereinafter
"Aladdin"); or (ii) if a third party acquires, directly or indirectly, control of Aladdin or substantially all of its assets.

	(c)
	"Event
Completion" means the effective date of a plan of reorganization for the Company or 90 days after a Change of Control.

	(d)
	"Good
Reason" shall mean (i) a material reduction in Executive's duties, authorities and responsibilities without her consent provided Executive gives the Company written
notice specifying such action and the Company has not cured or abated such action within twenty (20) days thereafter, provided that a change in Executive's direct report shall not in and of
itself constitute evidence of a material reduction in duties, authorities and responsibilities; or (ii) a reduction by the Company in the Executive's base salary, in effect immediately prior to
such reduction, without her consent, provided Executive gives the Company written notice specifying such action and the Company has not cured or abated such action within twenty (20) days
thereafter; and (iii) the failure of the Company to cause this Agreement to be assumed as provided for in paragraph 11 below. 

2

 

	(e)
	"Payment
Date" shall mean the earlier of (i) the Event Completion, (ii) the date the Company terminates the Executive without Cause or (iii) the date the
Executive quits with Good Reason.

	(f)
	"Person"
shall have the same meaning as such term has under section 13(d) of the Act and the regulations promulgated thereunder. 

    5.  Indemnification. If litigation shall be brought to enforce or interpret any provision contained herein or to recover
from the Executive any moneys paid pursuant to this Agreement, the Company, to the extent permitted by applicable law and the Company's Articles of Organization, hereby agrees to indemnify the
Executive for her or her reasonable attorneys' fees and disbursements incurred in such litigation, and hereby agrees to pay any money judgment obtained from the Executive and prejudgment interest on
any money judgment obtained from the Executive. 

    6.  Payment Obligations Absolute. The Company's obligation to pay the Executive the payment and to make the arrangements
provided for herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or
other right which the Company may have against him or anyone else. All amounts payable by the Company hereunder shall be paid without notice or demand. Each and every payment made hereunder by the
Company shall be final, and the Company will not seek to recover all or any part of such payment from the Executive or from whosoever may be entitled thereto, for any reason whatsoever. The Executive
shall not be obligated to seek other employment in mitigation of the amounts payable or arrangements made under any provision of this Agreement, and the obtaining of any such other employment shall in
no event effect any reduction of the Company's obligations to make the payments and arrangements required to be made under this Agreement. 

    7.  Continuing Obligations. The Executive shall retain in confidence any confidential information known to him
concerning the Company and its respective businesses so long as such information is not publicly disclosed and otherwise comply with Section 6(a) of the Employment Agreement in all respects. 

    8.  Successors. This Agreement shall be binding upon and inure to the benefit of the Executive and her estate and the
Company and any successor of the Company, but neither this Agreement nor any rights arising hereunder may be assigned or pledged by the Executive. 

    9.  Severability. Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

    10. Prior Agreements. This Agreement supersedes any prior severance and retention agreement between the Executive and
the Company. Notwithstanding the prior sentence, this Agreement does not supersede or amend the Employment Agreement except as to those provisions relating to retention and severance, and is a
separate and independent contract between the Company and the Executive. 

[Balance
of Page Intentionally Left Blank] 

3

 

    11. Chapter 11 Case. In the event the Company commences a Chapter 11 case prior to the Expiration Date, the company
shall file a motion within two (2) business days of the petition date for the Chapter 11 Case to assume this Agreement pursuant to Section 365 of the Bankruptcy Code. In the event
an order is not entered by the Bankruptcy Court approving the assumption of this Agreement within thirty (30) days of the petition date, which order does not become a final,
non-appealable order within fifteen (15) days thereof, Executive has the right to terminate her employment with the Company with good reason. 

    12. Controlling Law. This Agreement shall in all respects be governed by and construed in accordance with the laws of
the State of Nevada. 

    13. Termination. This Agreement shall terminate on the Expiration Date; however, the Company's obligations pursuant to
Section 3, 5, 6 and 8 above and the Executive's obligations pursuant to Sections 6, 7 and 9(j) of the Employment Agreement, shall survive termination. 

    IN
WITNESS WHEREOF, the parties have executed this Agreement on the 11th day of June, 2001. 

	
 	
 	
ALADDIN GAMING, LLC
	

 	
 	

By:	
 	

	

 	
 	

Its:	
 	

 	
 	

 
	

 	
 	

EXECUTIVE
	

 	
 	

By:	
 	

 Patricia Becker

4Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.1    
  

April
2, 2001 

David
Wallace 

    Re: Employment with rStar Corporation

Dear
David: 

    This
letter shall serve to confirm the agreement we reached in connection with your continued employment with rStar Corporation (the "Company") as its Vice President, General Counsel
and Secretary. In that position, you will continue to report to the Chief Executive Officer of the Company. 

    As
Vice President, General Counsel and Secretary, an exempt position, you will continue to receive a base salary of $15,416.66 per month, which will be paid in accordance with the
Company's normal payroll procedures ("Annual Base Salary"). You will also be eligible to participate in an executive incentive program for the 2001 calendar year, with a bonus payable upon the meeting
of specific performance objectives mutually agreed upon by you and the Company. The maximum sum payable to you under the 2001 executive incentive program shall be 30% of your Annual Base Salary. 

    In
the event the Company terminates your employment with Cause (as defined below), you will not be entitled to receive any compensation or benefits of any type following the effective
date of the termination for Cause. 

    In
the event (a) you are terminated by the Company without Cause, or (b) you voluntarily terminate your employment for Good Reason (as defined below) within twelve (12) months
following a Change of Control (as defined below), then you shall be entitled to receive: (x) a lump sum cash severance payment in an amount equal to fifty percent (50%) of your Annual Base Salary then
in effect, subject to applicable withholdings in accordance with the Company's normal payroll practices; (y) one hundred percent (100%) of the executive incentive bonus that could be earned in that
year, and (z) health insurance benefits at the same level of coverage as was provided to you immediately prior to the termination without Cause or the termination for Good Reason ("Health Care
Coverage") by electing Federal COBRA continuation coverage, or similar coverage required under state law (collectively, "COBRA"), in which event the Company shall pay one hundred percent (100%) of
your Health Care Coverage premiums and those of your dependents under COBRA for six (6) full months following the month in which you were terminated without Cause or you voluntarily terminated your
employment for Good Reason. 

    For
purposes of this letter, the following terms shall be defined as follows: 

    (a) "Cause"
is defined as: (i) a material act of dishonesty made by you in connection with your responsibilities as an executive officer of the Company; (ii) conviction
of, or plea of nolo contendere to, a felony, or a crime involving moral turpitude; (iii) your gross misconduct in connection with your duties as an executive officer of the Company; or (iv) continued
substantial violations of your employment duties after (A) you have received a written demand for performance from the Company's Board of Directors that specifically sets forth the factual basis for
the Board's belief that you have not substantially performed your duties, and (B) following a reasonable opportunity, not to be less than thirty (30) days, for you to cure any substantial failure of
performance of your duties. 

    (b) "Change
of Control" of the Company is defined as; (i) any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")) becoming the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than 51%
of the total voting power represented by the 

Company's then outstanding voting securities; or (ii) the date of the consummation of a merger or consolidation of the Company with any other corporation that has been approved by the stockholders or
the Board of the Company; or (iii) the date on which the stockholders or the Board of the Company approve a plan of complete liquidation of the Company; or (iv) the date of the consummation of the
sale or disposition by the Company of all or substantially all the Company's assets. 

    (c) "Good
Reason" shall mean your voluntary resignation from the Company within ninety (90) days after the occurrence of any of the following; (i) without your express
written consent, a material reduction of the duties, title, authority or responsibilities, relative to your duties, title, authority or responsibilities as in effect immediately prior to such
reduction, or the assignment to you of such reduced duties, title, authority or responsibilities; (ii) a reduction by the Company in your annual Base Salary as in effect immediately prior to such
reduction; (iii) a material reduction by the Company in the kind or level of employee benefits, including bonuses, to which you were entitled immediately prior to such reduction, with the result that
your overall benefits package is materially reduced; (iv) your relocation to a facility or a location more than forty (40) miles from your residence at the time of the relocation without your express
written consent; or (v) the failure of the Company to obtain the assumption of this agreement by any person, firm, corporation or other business entity which at any time, whether by purchase, merger
or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. 

    The
terms of this agreement may not be modified or amended except by a written agreement executed by you and an executive officer of the Company, and shall, together with the
Confidential Information, Invention Assignment and Terms of Employment Agreement and such other written agreements you and the Company may enter in connection with your employment, constitute the
entire agreement between you and the Company relating to the terms of your employment. 

    In
order to indicate your assent to this agreement, please sign this letter and return it to me at your earliest convenience. 

Very
truly yours, 

RSTAR
CORPORATION 

/s/
Lance Mortensen 

Lance
Mortensen
 Chief Executive Officer and President

Agreed and Accepted:

/s/
David Wallace 

David
Wallace 

QuickLinks

Exhibit 10.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]