Document:

Exhibit

Exhibit 10.7

    
	
					
	EMPLOYMENT AGREEMENT

                                

This Employment Agreement (this "Agreement") is entered into as of April 10, 2015 (the "Effective Date"), by and between Nevada Property 1 LLC ("Employer") and Michelle “Chelle” Adams (“Executive").  Employer and Executive are jointly referred to herein as the "Parties."
RECITALS

WHEREAS, Employer is the owner and operator of that certain integrated resort and casino property known as The Cosmopolitan of Las Vegas, located in Las Vegas, Nevada (the “Property”); 

WHEREAS, Employer and Executive are parties to that certain Employment Agreement, dated as of August 27, 2012, and that certain First Amendment to Employment Agreement, dated as of May 1, 2014 (collectively, the “Prior Agreement”), which Prior Agreement is, concurrently herewith, null and void and of no further force and effect, and this Agreement supercedes the Prior Agreement in its entirety.

WHEREAS, in connection with Executive’s new appointment as Chief Financial Officer, Employer desires to offer continued employment to Executive as provided for in Section 1 of this Agreement, and Executive wishes to accept such continued employment upon such terms and conditions as are set forth herein;

Now, therefore, in consideration of the foregoing and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Parties agree that the foregoing recitals are true and correct and are incorporate herein as if fully set forth and further agree as follows:

AGREEMENT

		
	1.
	Employment.  During the “Specified Term” (defined below), Employer shall employ Executive as Chief Financial Officer.  Executive shall have such duties, authorities, and responsibilities as described in Exhibit “A” attached hereto and incorporated herein by this reference, and as otherwise may customarily be exercised by individuals serving in similar or substantially similar capacities for similarly situated employers.  Executive shall report to Employer’s Chief Executive Officer (the “CEO"), or such other individual or individuals as may be designated by the CEO from time to time.  

		
	2.
	Commencement Date; Specified Term.  Subject to earlier termination as provided for herein, the term of Executive's employment hereunder shall commence on the Effective Date, and terminate on April 9, 2018 (the "Specified Term").  If Executive remains employed by Employer after the expiration of the Specified Term, any such employment shall be expressly at-will, unless the Parties agree otherwise in writing and only those Sections specified below in Section 23 shall remain in full force and effect.

		
	3.
	Base Salary.  During the Specified Term, in consideration of the performance by Executive of all of Executive's obligations hereunder, Employer shall pay Executive an annual base salary of $300,000.00 for the period commencing on the Effective Date, through April 9, 2016.  Upon the first year anniversary of the Effective Date, Executive’s base salary shall increase to $315,000.00.  Upon the second anniversary of the Effective Date, Executive’s base salary shall increase to $330,000.00.  Individually and collectively, the base salary to be paid to Executive as specified in this Section 3 shall be referred to as the “Base Salary.”  Executive’s Base Salary shall be payable in accordance 

Exhibit 10.7

with the payroll practices of Employer in effect from time to time for Employer's other similarly situated executives.  

		
	4.
	Bonus Compensation.  Executive shall be eligible to participate in the discretionary executive bonus and long term incentive program offered by Employer, if any, in the same manner as other similarly situated executives and in accordance with the terms of such bonus and incentive program, with a target bonus for Executive’s position of fifty percent (50%) of Base Salary then in effect for any full calendar year Executive is employed.  The parties acknowledge and agree that for purposes of calculating Executive’s discretionary bonus for 2015 only, Executive’s discretionary bonus (including the target bonus percentage) shall be calculated based upon her immediately prior position under the Prior Agreement, for the period of January 1, 2015, through April 9, 2015, and based upon her current position under this Agreement for the balance of 2015.  The parties further acknowledge and agree that except as otherwise expressly provided for herein, Executive shall only be entitled to receive a bonus if Executive remains continuously employed, and has not given notice of Executive's intent to resign, through the date upon which any bonus is actually paid.  If this Section 4 conflicts with the provision of any other agreement or plan of any kind pertaining to the earning or payment of bonus or incentive compensation, the terms of this Agreement shall control. 

		
	5.
	Benefit Programs.  During the Specified Term, Executive shall be entitled to participate in Employer's benefit plans as are generally made available from time to time to Employer's similarly situated executives, subject to the terms and conditions of such plans, and subject to Employer's right to amend, terminate or take other similar actions with respect to such plans.    

		
	6.
	Expense Payments and Reimbursements.  To the extent Executive incurs necessary and reasonable travel or other business expenses in the course of Executive’s employment, Executive shall be reimbursed for such expenses, upon presentation of written supporting documentation and otherwise in accordance with Employer’s policies in effect from time to time.  

  
		
	7.
	Extent of Services.  Executive agrees that the duties and services to be performed by Executive shall be performed exclusively for Employer on a full time basis and based in Las Vegas, Nevada.  Executive further agrees to perform such duties in an efficient, trustworthy and businesslike manner.  While employed by Employer, Executive expressly agrees not to render to any others service of any kind whatsoever, whether or not for compensation, or to engage in any other business activity whether or not for remuneration of any kind, that, in each case, is similar to or conflicts with the performance of Executive's duties under this Agreement, without the written approval of the Property’s CEO or such other person as may be designated by Employer from time to time.  Notwithstanding the foregoing, Executive shall be entitled to conduct her own personal affairs, including directing and managing the investment of the assets of Executive's and/or Executive's immediate family, (ii) participate (as Executive is doing currently) in charitable organization (three (3)), (iii) participate in professional organizations (currently the Advisory Board of the Gaming Audit Group of the Institute of Internal Auditors (IIA) which includes organizing and speaking at the April IIA Gaming conference) and (iv) co-authorship of the IIA’s “Auditing the Casino Floor”, new edition (which includes minimal royalties), so long as such activities do not interfere with Executive's duties and services hereunder.    

		
	8.
	Licensing Requirements.  Executive acknowledges that Employer is engaged in a business that is subject to and exists because of privileged licenses issued by governmental authorities in Nevada and other jurisdictions in which Employer is engaged or during Executive's employment may apply to engage in Employer's business.  If requested to do so by Employer (and the parties hereto acknowledge that such request has been made, by virtue of the CFO role being a mandatory gaming licensed positon in the State of Nevada, and Executive has begun the license application process, at Employer’s 

Exhibit 10.7

expense), Executive shall apply for and obtain any license, qualification, clearance or the like which shall be requested or required of Executive by any regulatory authority having jurisdiction over Employer.  
		
	9.
	Failure to Satisfy Licensing Requirement.  If Executive fails to satisfy any licensing requirement referred to in Section 8 above, or if any governmental authority directs Employer to terminate any relationship it may have with Executive, or if Employer shall determine, in Employer's sole and exclusive judgment, that Executive was, is or might be involved in, or is about to be involved in, any activity, relationship(s) or circumstance which could or does jeopardize Employer's business, reputation or such licenses, or if any such license is threatened to be, or is, denied, curtailed, suspended or revoked, this Agreement may be terminated by Employer and the parties' obligations and responsibilities shall be determined by the provisions of Section 14.

		
	10.
	Policies and Procedures.  In addition to the terms herein, Executive agrees to be bound by Employer's policies and procedures, as they may be amended by Employer from time to time, appearing in an Employer handbook, business practices manual, ethics manual, or other similar document.  In the event the terms in this Agreement conflict with any of Employer's policies and procedures, the terms of this Agreement shall control.

11.    Restrictive Covenants.

		
	a.
	Non-Competition.  Executive acknowledges that by virtue of Executive's position with Employer and in the course of Executive performing Executive's duties and responsibilities hereunder, Executive will form relationships and become specifically and generally acquainted with Employer's, the Property’s, and Owner's (collectively the "Employer's Group") confidential and proprietary information as further described in Section 11(b) below.  Executive further acknowledges that such relationships and information are and will remain highly valuable to Employer's Group and that the restrictions on future employment, if any, are reasonably necessary in order for Employer's Group to remain competitive in the highly competitive resort-gaming industry.  In recognition of Employer Group's heightened need for protection from abuse of relationships formed or information garnered before and during Executive's employment hereunder, Executive covenants and agrees that:

		
	(i)
	If Executive's employment with Employer ends for any reason whatsoever during the Specified Term, Executive acknowledges, covenants, and agrees that for the nine (9) month period immediately following the termination, Executive shall not directly or indirectly or in any manner or method be employed by, provide consultation or other services to, engage or participate in, provide advice, information or assistance to, fund or invest in a "Competitor" (defined below) anywhere within a 100 mile radius of the Project.  

		
	(ii)
	If Executive remains employed by Employer after the expiration of the Specified Term and, as such, is employed by Employer at-will in accordance with Section 2 above, Executive shall be entitled to receive those amounts, if any, enumerated in Section 19 below.    

		
	(iii)
	Notwithstanding the obligations enumerated herein, it shall not be a violation of any obligation owed by Employee during the restrictive periods identified in Sections 11(a)(i) and (ii) for Executive (or anyone one acting on Executive’s behalf) to own up to five percent (5%) of a publically traded entity engaged in the hotel-resort or hotel-

Exhibit 10.7

resort-gaming industry so long as such ownership does not result in Executive having any operational or management role of any kind in such industry.

		
	(iv)
	The covenants under this Section 11(a) also includes Executive’s acknowledgement, covenant, and agreement that for the nine (9) month period immediately following Executive’s termination for any reason whatsoever, Executive shall not:

		
	A.
	Make known to any Competitor or officer, director, executive, employee or agent of a Competitor, the names, addresses, contact information or any other information pertaining to any advertisers, suppliers, vendors, independent contractors, brokers, partners, patrons, executives or customers (collectively the "Business Contacts") of the Employer's Group or prospective Business Contacts of the Employer's Group on whom Executive called or with whom Executive did business or attempted to do business during Executive’s employment for Employer either for Executive's own benefit or for any Competitor;

		
	B.
	Call on, solicit, induce to leave and/or take away, or attempt to call on, solicit, induce to leave and/or take away, any of Business Contacts of the Employer's Group or prospective Business Contacts of the Employer's Group on whom Executive called or with whom Executive did business or attempted to do business during Executive’s employment for Employer either for Executive's own benefit or for any Competitor;

		
	C.
	Approach, solicit, contract with or hire any current advertiser, supplier, vendor, independent contractor, broker or employee of the Employer's Group with a view towards enticing such person to cease his/her/its relationship with the Employer's Group or end his/her employment with the Employer's Group, without the prior written consent of Employer, such consent to be within Employer's sole and absolute discretion. 

For purposes of this Agreement, "Competitor" shall mean any hotel, resort, gaming, casino or combination hotel, resort, gaming or casino establishment located within a 100 mile radius of the Project.

		
	b.
	Confidentiality.  Executive covenants and agrees that, other than in connection with the performance of duties hereunder, Executive shall not at any time during Executive's employment by Employer or for a period of five years thereafter, without Employer's prior written consent, such consent to be within Employer's sole and absolute discretion, disclose or make known to any person or entity outside of Employer any proprietary or other confidential information concerning the Employer's Group, including without limitation, Employer's Group’s proprietary and confidential business practices, contractual relationships, marketing practices and procedures, management policies or any other information regarding the Employer's Group's operation whatsoever, which is not already and generally known to the public through no wrongful act of Executive or any other party.  Executive covenants and agrees that Executive shall not at any time during the Specified Term, or for a period of five (5) years thereafter, without Employer's prior written consent, disclose or use any such proprietary or confidential information in any way, including communications with or contact with any third party other than in connection with Executive’s employment with Employer.  In addition to the above, and not by way of limitation, Executive further covenants and agrees 

Exhibit 10.7

that Executive shall not at any time during Executive's employment or at any time thereafter disclose, make known to any person or entity, or otherwise use for any purpose whatsoever any Trade Secret belonging to the Employer's Group which is not already and generally known to the public through no wrongful act of Executive or any other party.  For purposes of this Agreement, Trade Secrets are defined in a manner consistent with the broadest interpretation of Nevada law and shall include, but shall not be limited to formulas, patterns, compilations, customer lists, contracts, business plans and practices, marketing plans and practices, financial plans and practices, programs, devices, methods, know-hows, techniques or processes, that derives economic value, present or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who may or could obtain any economic value from its disclosure or use.

		
	c.
	Exclusions.  Anything to the contrary herein notwithstanding, the provisions of Section 11(b) shall not apply (i) when disclosure is required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with actual or apparent jurisdiction to order Executive to disclose or make accessible any information, (ii) with respect to any litigation, arbitration or mediation involving this Agreement, including, but not limited to, the enforcement of this Agreement, (iii) as to information that becomes generally known to the public or within the relevant trade or industry other than due to Executive’s violation of this Section or (iv) as to information that is or becomes available to Executive on a non-confidential basis from a source which is entitled to disclose it to Executive.

		
	d.
	Third Party Information.  Executive acknowledges that Employer's Group has received and in the future will receive from third parties their confidential or proprietary information subject to a duty to maintain the confidentiality of such information and to use it only for certain limited purposes.  Executive will hold all such confidential or proprietary information in the strictest confidence, provided that Executive is reasonably aware that the information is confidential, and will not intentionally or negligently disclose it to any person or entity or to use it except as necessary in carrying out Executive's duties hereunder consistent with Employer's Group's agreement with such third party.  Executive shall not be in violation of Executive’s obligations under this paragraph 11(d) if such Third Party confidential or proprietary information is already generally known to the public through no wrongful act of Executive or any other party.

		
	e.
	Employer's Property.  Executive hereby confirms that Trade Secrets, proprietary or confidential information and all information concerning business practices of the Employer's Group, constitute Employer's Group's exclusive property, regardless of whether Executive possessed or claims to have possessed such information prior to the date hereof ("Employer Property") if the same has been used by Employer's Group for any business purpose.  Executive agrees that upon termination of employment, Executive shall promptly return to Employer, and retain no copies of, all Employer Property including, but not limited to, Employer Property recorded or appearing in any notes, notebooks, memoranda, computer disks, Rolodexes and any other similar repositories of information (regardless of whether Executive possessed such information prior to the date hereof).  Such repositories of information also include, but are not limited to, any files or other data compilations in any form, whether on Executive’s personal or home computer or otherwise, which in any manner contain any Employer Property.  Notwithstanding anything to the contrary, nothing in this Section 11(e) is intended to prevent Executive from maintaining general, non-proprietary contact information pertaining to the gaming and hospitality industry that Executive has accumulated over Executive’s years in 

Exhibit 10.7

such industry, including Executive’s years as an executive of Employer; provided, however, that Executive shall not use such information in any manner that does or may result in a violation of Executive's obligations under Section 11 hereof.

		
	12.
	Representations.  Executive hereby represents, warrants and agrees with Employer that:

		
	a.
	A portion of the compensation and consideration to be paid to Executive hereunder is in consideration for:  (i) Employer's agreement to employ Executive; (ii) agreement that the covenants contained in Sections 7 and 11 are reasonable, appropriate and suitable in their geographic scope, duration and content; (iii) agreement that Executive shall not, directly or indirectly, raise any issue of the reasonableness, appropriateness and suitability of the geographic scope, duration or content of such covenants and agreements in any proceeding to enforce such covenants and agreements; (iv) agreement that such covenants and agreements shall survive the termination of this Agreement, in accordance with their terms; and, (v) the free and full assignability of such covenants and agreement upon a sale or other transaction of any kind relating to the ownership and/or control of the Project;

		
	b.
	The enforcement of any remedy under this Agreement will not prevent Executive from earning a livelihood, because Executive's past work history and abilities are such that Executive can reasonably expect to find work irrespective of the covenants and agreements contained in Section 11 above;

		
	c.
	The covenants and agreements stated in Sections 7, 11 and this Section 12, are essential for Employer's reasonable protection; 

		
	d.
	Employer has reasonably relied on these covenants and agreements by Executive; and, 

		
	e.
	Executive has the full right to enter into this Agreement and by entering into and performance of this Agreement will not violate or conflict with any arrangements or agreements Executive may have or agreed to have with any other person or entity.

Additionally, Executive agrees that in the event of Executive's breach or threatened breach of any covenants and agreements set forth in Sections 7 and 11 above, Employer may seek to enforce such covenants and agreements through any equitable remedy, including specific performance or injunction, without waiving any claim for damages.  In any such event, Executive waives any claim that Employer has an adequate remedy at law or for the posting of a bond.

		
	13.
	Termination for Death or Disability.  Executive's employment hereunder shall terminate upon Executive's death or Disability (as defined below).  In the event of Executive's death or Disability, Executive (or Executive's estate or beneficiaries in the case of death) shall have no right to receive any compensation or benefit hereunder or otherwise from Employer on and after the date of termination of employment other than (a) unpaid Base Salary earned to the date of termination of employment (which shall be paid on Employer's next scheduled payroll date), (b) any bonus earned in a prior calendar year then unpaid to Executive (which shall be paid on the date such bonus is distributed to other executives in like positions), (c) business expense reimbursement pursuant to Section 6, (d) benefits provided pursuant to Section 5, subject to the terms and conditions applicable thereto, and (e) a pro rata bonus determined in accordance with Section 4, above, for the year of termination based on the amount Executive would have earned but for Executive's termination, which shall be paid at the time such bonus would have been paid in the ordinary course.  For purposes of this Section 13, Disability is defined as Executive's incapacity, certified by a licensed physician selected by Employer 

Exhibit 10.7

("Employer's Physician"), which precludes Executive from performing the essential functions of Executive's duties hereunder for any consecutive period of three (3) months or more.  In the event Executive disagrees with the conclusions of Employer's Physician, Executive (or Executive's representative) shall designate a physician ("Executive's Physician"), and Employer's Physician and Executive's Physician shall jointly select a third physician ("Third Physician"), who shall make the determination.  Executive hereby consents to any examination or to provide or authorize access to any medical records that may be reasonably required by Employer's Physician or the Third Physician in connection with any determination to be made pursuant to this Section 13.

		
	14.
	Termination by Employer for Cause.  Employer may terminate Executive's employment hereunder for "Cause" (as defined below) at any time.  If Employer terminates Executive's employment for Cause, Executive shall have no right to receive any compensation or benefit hereunder or otherwise from Employer on and after the date of termination of employment other than unpaid Base Salary earned to the date of termination of employment (which shall be paid on Employer's next scheduled payroll date) and unpaid business expense reimbursement pursuant to Section 6.  For purposes of this Section 14, Cause is defined as: (a) any breach by Executive of any of Executive’s material obligations contained in this Agreement; (b) consistent neglect or failure to perform Executive’s duties and responsibilities consistent with Executive’s executive positions; (c) material violation of Employer's code of ethics; (d) violation of Employer's anti-harassment/discrimination/retaliation provisions; (e) conviction or plea of nolo contendere to a felony, or (f) circumstances set forth in Section 9 above.  Notwithstanding the foregoing, prior to terminating Executive's employment hereunder for Cause pursuant to Section 14(a) or (b) and if, and only if such conduct is curable, curability to be determined in Employer’s sole and absolute discretion,  Executive shall be given thirty (30) days prior written notice that Employer intends to terminate Executive's employment for Cause during which time Executive must demonstrate to the satisfaction of Employer that Executive either has cured Executive’s defective performance or has a specific and detailed plan for such cure.  If Employer determines that Executive has not cured or has failed to present a thorough plan for cure prior to the expiration of such thirty (30) day period, Executive shall be terminated for Cause no later than at the expiration of such thirty (30) day period.  

		
	15.
	Termination by Employer without Cause; Termination by Executive for Good Reason.  Employer may, at any time, immediately terminate Executive's employment hereunder without Cause.  Executive may, with 30 days' prior written notice to Employer, terminate Executive's employment hereunder for "Good Reason" (defined below).  If Employer terminates Executive's employment hereunder other than for Cause or if Executive terminates Executive's employment hereunder for Good Reason, then Executive understands and agrees that Executive shall have no right to receive any compensation or benefit hereunder or otherwise from Employer on and after the date of termination of employment except (a) Base Salary then in effect, earned but unpaid through the date of termination, plus Base Salary then in effect for the nine (9) month period immediately following the termination, all paid in accordance with Employer’s scheduled payroll practices, (b) any discretionary bonus expressly awarded but not yet paid to Executive (which shall be paid to Executive at the same time Employer distributes like bonuses to similarly situated executives), (c) business expense reimbursement pursuant to Section 6, and (d) COBRA coverage, at no cost to Executive or Executive’s dependents, under Employer's health insurance programs, for the nine (9) month period immediately following the termination, after which time the cost of continued health coverage shall be Executive's sole and exclusive responsibility; provided, however, that if Executive becomes eligible for health and insurance coverage from a new employer, then Employer's obligations pursuant to this clause 15 shall immediately cease. The payments and benefits to be provided pursuant to this Section 15 upon termination of Executive's employment shall constitute the sole and exclusive payments in the nature 

Exhibit 10.7

of severance, termination pay or salary continuation that shall be due to Executive if Executive is terminated or deemed to have been terminated through any proceeding without Cause or Executive terminates for good reason and shall be in lieu of any and all other payments or benefits of any kind, including, but not limited to, any payments or benefits under any plan, program, policy or arrangement that has heretofore been or shall hereafter be established by Employer.

		
	16.
	Good Reason Defined.  For purposes of Section 15, Good Reason is defined as (a) material breach by Employer of any of its material obligations contained in this Agreement (b) a material reduction by Employer of Executive's title; (c) the assignment to Executive of any duties or responsibilities materially inconsistent with Executive’s title and stature; or (d) Employer's bankruptcy.  Notice of termination given to Employer by Executive for Good Reason shall specify the reason(s) for such termination and, if reasonably susceptible of cure, Employer shall have 30 days to cure such breach.  If Employer fails to cure such reason for termination within 30 days of notice by Executive that Executive is exercising a Good Reason termination, termination for Good Reason shall then become effective.

		
	17.
	Termination by Executive other than for Good Reason.  Executive may terminate Executive’s employment without Good Reason upon 30 days’ prior written notice (the “Notice Period”) to Employer; provided, however, that in its sole and exclusive discretion, Employer may waive any or all of the Notice Period.  If Executive terminates Executive’s employment pursuant to this Section 17, Executive shall have no right to receive any compensation or benefit hereunder or otherwise from Employer on or after the date of termination other than (a) unpaid Base Salary earned through the last date of Executive’s employment as determined in Employer’s discretion (which shall be paid on Employer’s next scheduled payroll date), and (b) business expense reimbursement pursuant to Section 6. 

		
	18.
	Release; Full Satisfaction. Notwithstanding any provision in Sections 13 (in the case of "Disability") and 15 hereof, no payments or benefits shall be provided pursuant to Sections 13 or 15 that are in addition to the payments or benefits that are required by law, unless and until Executive executes and delivers Employer’s standard form of general release of any and all claims relating to this Agreement and employment generally, and such release has become irrevocable in the event that the release of a claim requires a waiting period for irrevocability.  

		
	19.
	Termination After The Expiration of the Specified Term.    If, and only if, Executive remains employed at-will by Employer after expiration of the Specified Term, and Executive is terminated, or their employment otherwise ends, for Cause as that term is defined in Section 14, Executive shall have no right to receive any compensation or benefit hereunder or otherwise from Employer on and after the date of termination of employment other than unpaid Base Salary earned to the date of termination of employment (which shall be paid on Employer's next scheduled payroll date) unpaid business expense reimbursement pursuant to Section 6.  

		
	20.
	Section 409A.     To the extent applicable, it is intended that the Agreement comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A").  The Agreement shall be administered and interpreted in a manner consistent with this intent, and any provision that would cause the Agreement to fail to satisfy Section 409A shall have no force and effect until amended to comply therewith (which amendment may be retroactive to the extent permitted by Section 409A).  Notwithstanding anything contained herein to the contrary, Executive shall not be considered to have terminated employment with Employer for purposes of the Agreement and no payments shall be due to Executive under the Agreement which are payable upon Executive’s termination of employment unless Executive would be considered to have incurred a "separation from service" from Employer 

Exhibit 10.7

within the meaning of Section 409A.  To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Agreement during the twelve (12) month period immediately following Executive’s termination of employment shall instead be paid on the first business day after the date that is twelve (12) months (as applicable) following Executive’s termination of employment (or upon Executive’s death, if earlier).  In addition, for purposes of the Agreement, each amount to be paid or benefit to be provided to Executive pursuant to the Employment Agreement shall be construed as a separate identified payment for purposes of Section 409A.  With respect to expenses eligible for reimbursement under the terms of the Agreement, (i) the amount of such expenses eligible for reimbursement in any taxable year shall not affect the expenses eligible for reimbursement in another taxable year and (ii) any reimbursements of such expenses shall be made no later than the end of the calendar year following the calendar year in which the related expenses were incurred, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A.

		
	21.
	Cooperation Following Termination. Following termination of Executive's employment hereunder for any reason, Executive agrees to cooperate with Employer upon the request of Employer and to be reasonably available to Employer with respect to matters arising out of Executive's services to Employer.  Employer shall reimburse, or at Executive's request, advance Executive for expenses reasonably incurred in connection with such matters.

		
	22.
	Interpretation; Each Party the Drafter.  THIS AGREEMENT IS THE PRODUCT OF EXTENSIVE DISCUSSIONS AND NEGOTIATIONS BETWEEN THE PARTIES.  EACH OF THE PARTIES WAS REPRESENTED BY OR HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL WHO EITHER PARTICIPATED IN THE FORMULATION AND DOCUMENTATION OF, OR WAS AFFORDED THE OPPORTUNITY TO REVIEW AND PROVIDE COMMENTS ON, THIS AGREEMENT.  ACCORDINGLY, THIS AGREEMENT AND THE PROVISIONS CONTAINED IN IT SHALL NOT BE CONSTRUED OR INTERPRETED FOR OR AGAINST ANY PARTY TO THIS AGREEMENT BECAUSE THAT PARTY DRAFTED OR CAUSED THAT PARTY'S LEGAL REPRESENTATIVE TO DRAFT ANY OF ITS PROVISIONS.

		
	23.
	Indemnification.  Employer shall indemnify Executive to the fullest extent permitted by Nevada law 

		
	24.
	Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under, or would require the commission of any act contrary to, existing or future laws, such provisions shall be fully severable, the Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as part of this Agreement a legal and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible.

		
	25.
	Survival.  Notwithstanding anything in this Agreement to the contrary, to the extent applicable, Sections 11, 12, and 19 through 37 of this Agreement, and any other Section which, by its intent, should survive, shall survive the termination of this Agreement.

		
	26.
	Notice.  For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) when personally delivered, (b) the business day following the day when deposited with a reputable and established 

Exhibit 10.7

overnight express courier (charges prepaid), or (c) five (5) days following mailing by certified or registered mail, postage prepaid and return receipt requested.  Unless another address is specified, notices shall be sent to the addresses indicated below: 

To Employer:

Daniel Espino
Vice President of People
The Cosmopolitan of Las Vegas
3708 Las Vegas Blvd. South
Las Vegas, Nevada 89109

With a copy to:

Anthony J. Pearl 
General Counsel
The Cosmopolitan of Las Vegas
3708 Las Vegas Blvd. South
Las Vegas, Nevada 89109

To Executive:

Chelle Adams
2284 Candlestick Ave.
Henderson   NV  89052 

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  

		
	27.
	Tax Withholding.  Notwithstanding any other provision of this Agreement, Employer may withhold from any amounts payable under this Agreement, or any other benefits received pursuant hereto, such Federal, state, local and other taxes as shall be required to be withheld under any applicable law or regulation.

		
	28.
	Attorneys Fees.  In the event suit is brought to enforce, or to recover damages suffered as a result of breach of this Agreement, the prevailing party shall be entitled to recover its reasonable attorney's fees and costs of suit.

		
	29.
	Limitation of Damages.  In no event shall either party be liable to the other, except with respect to third party claims, for any consequential, incidental, indirect, punitive, exemplary or special damages.

		
	30.
	No Waiver of Breach or Remedies.  No waiver by Executive or Employer at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No waiver of any provision of this Agreement shall be implied from any course of dealing between or among the parties hereto or from any failure by any party hereto to assert its rights hereunder on any occasion or series of occasions. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

		
	31.
	Amendment or Modification.  No amendment, modification, termination or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by an authorized 

Exhibit 10.7

representative of Employer (other than Executive), and Executive, nor consent to any departure by Executive or Employer from any of the terms of this Agreement shall be effective unless the same is signed by an authorized representative of the affected party.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

		
	32.
	Governing Law.  The laws of the State of Nevada shall govern the validity, construction, and interpretation of this Agreement, without regard to conflict of law principles.  Further, venue for any dispute resolution process that occurs pertaining to this Agreement or the subject matter of this Agreement shall lie exclusively in the federal or state courts of Nevada, located in Las Vegas, Nevada, in any action, suit or proceeding arising out of or relating to this Agreement or any matters contemplated hereby, and any such action, suit or proceeding shall be brought only in such court.

		
	33.
	Waiver of Jury Trial.  Executive and Employer recognize that a trial by jury is more costly and time consuming than a non-jury trial, and that due to court calendar delays, it often takes longer for a case to proceed to a trial by jury.  In order to avoid such delays, and to obtain a prompt resolution of disputes while avoiding unnecessary expense, the Parties mutually acknowledge, inentionally and knowingly agree to waive their REspective rights to a trial by jury in any and all actions, claims, proceedings, counterclaims, or third-party claims brought by them arising out or in any way connected to executive's employment with employer, the termination thereof or this agreement.  

		
	34.
	Headings.  The headings set forth herein are included solely for the purpose of identification and shall not be used for the purpose of construing the meaning of the provisions of this Agreement.

		
	35.
	Assignment.  This Agreement and the rights and obligations hereunder shall not be assignable or transferable by Executive without the prior written consent of Employer in its sole and absolute discretion.  Notwithstanding the foregoing, this Agreement shall be binding on and inure to the benefit of Executive and Executive’s heirs, executors, administrators and legal representatives.  Executive expressly understands and agrees this Agreement shall be binding on and inure to the benefit of Employer and its successors and assigns, including successors by merger and operation of law and that Employer may fully and freely assign this entire Agreement, including but not limited to those provisions appearing in Sections 7 and 11 herein, or any part of its rights and obligations under this Agreement at any time without Executive’s consent and following such assignment all references to Employer shall be deemed to refer to such assignee and Employer shall thereafter have no obligation under this Agreement. 

		
	36.
	Entire Agreement.  This Agreement supersedes all prior or contemporaneous agreements and statements, whether written or oral, concerning the terms of Executive’s employment with Employer, and no amendment or modification of these agreements shall be binding unless it is set forth in a writing signed by both Employer and Executive.  To the extent that this Agreement conflicts with any of Employer’s policies, procedures, rules or regulations, this Agreement shall supersede the other policies, procedures, rules or regulations.  

		
	37.
	Use of Executive’s Name, Voice and Likeness.  Executive hereby irrevocably grants Employer the unrestricted right, but not the obligation, to use Executive’s name, voice or likeness for any publicity or advertising purpose in any medium now known or hereafter existing.

    

Exhibit 10.7

IN WITNESS WHEREOF, Employer and Executive have entered into this Agreement in Las Vegas, Nevada as of the Effective Date.

	
					
	EXECUTIVE:
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By: /S/ Michelle F. Adams
	 
	 
	 
	 

	Name: Michelle F. Adams (Aug 27, 2015)
	 
	 
	 
	 

	 
	 
	 
	 
	 

	NEVADA PROPERTY 1 LLC
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By: /S/ William P. McBeath 
	 
	 
	 
	 

	Name: William P. McBeath (Sept 1, 2015)
	 
	 
	 
	 

	Title: Chief Executive Officer
	 
	 
	 
	 

	 
	 
	 
	 
	 

	NEVADA PROPERTY 1 LLC
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By: /S/ Anthony J. Pearl
	 
	 
	 
	 

	Name: Anthony J. Pearl (Aug 27, 2015)
	 
	 
	 
	 

	Title: General Counsel and Chief Compliance Officer 
	 
	 
	 
	 

Exhibit 10.7

EXHIBIT A

	
	
	Chief Financial Officer

	 

	ROLE:   As a key member of the Executive Management team, the
Chief Financial Officer will report to the CEO and assume a strategic
role in the overall management of the company. The CFO will have
primary day-to-day responsibility for planning, implementing,
managing and controlling all
financial-related activities of the company.  Your expertise will ensure
the continued success  of The Cosmopolitan of Las Vegas, today,
tomorrow, and in the future.

SUPERVISES:   Financial-Related CoStars                 REPORTS TO:     CEO                         PREFERRED EXPERIENCE:  15+ years in progressively responsible financial
leadership roles, preferably in the gaming/hospitality industry.  Must have a thorough knowledge of casino regulatory rules and regulations, and casino internal and accounting control procedures.

EDUCATION:  BS in Accounting or Finance, MBA and/or CPA highly desirable

MAJOR JOB DUTIES:  Duties include, but are not limited, to the following:
		
	•
	Provides leadership in the development for the continuous evaluation of short and long-term strategic financial objectives.

		
	•
	Ability to manage in a fast-changing dynamic environment with many different stakeholders.

		
	•
	Ensure credibility of Finance group by providing timely and accurate analysis of budgets, financial trends and forecasts.

		
	•
	Take hands-on lead position of developing, implementing, and maintaining a comprehensive job cost system.

		
	•
	Direct and oversee all aspects of the Finance & Accounting functions of the organization.

		
	•
	Evaluates and advises on the impact of long range planning, introduction of new programs/ strategies and regulatory action.

		
	•
	Establish and maintain strong relationships with senior executives so as to identify their needs and seek full range of business solutions.

		
	•
	Provide executive management with advice on the financial implications of business activities.

		
	•
	Manage processes for financial forecasting, budgets and consolidation and reporting to the 

Exhibit 10.7

Company
		
	•
	Provide recommendations to strategically enhance financial performance and business opportunities.

		
	•
	Ensure that effective internal controls are in place and ensure compliance with GAAP and applicable federal, state and local regulatory laws and rules for financial and tax reporting.

SKILLS:
		
	•
	A strong financial and operational background with experience leading Finance and Accounting within fast growing, start-up environments, as well as larger organizations.

•    Candidate must be an expert in the areas of. accounting and financial reporting.
		
	•
	Must have the ability to apply advanced mathematical concepts and create financial reports.

•    Must have a strong knowledge of US Generally Accepted Accounting Principles.
•    Strong working knowledge of operational environment.
•    Strong oral and written communications skills required.
•    Candidates should have strong technical skills, including proficiency in Microsoft
Office applications.
•    Individual must be able to be approved for and maintain a valid gaming license.
		
	•
	Applicant must have the ability to write routine correspondence and to speak effectively to the public, CoStars and customers.

•    Ability to deal effectively and interact well with the customers and CoStars.
•    Ability to resolve problems/conflicts in a diplomatic and tactful manner

CERTIFICATE/LICENSE:  Advanced degree or CPA is preferred.

The above statements represent a general outline of principal job functions and should not beconstrued as a complete description of all aspects and requirements inherent in this job.

PHYSICAL, ENVIRONMENTAL & OTHER REQUIREMENTS:
The physical demands described here are representative  of those that must be met by a Co-Star to successfully perform the essential functions of this job.  Reasonable  accommodations  may be made to enable individuals  with disabilities to perform the essential functions.

Work is performed in an office environment  and throughout the property in all locations.  Must be tolerant to varying conditions of noise level, temperature, illumination and air quality.  The noise level in the work environment  is usually moderate.  When on the casino floor, the noise level increases to loud.  A casino environment  typically allows smoking.

Constant contact with executives, department management, applicants, Co-Stars and guests is necessary.  Requires prolonged sitting or standing and mobility.  Requires bending and reaching. Requires transporting, pushing, pulling, and maneuvering items weighing up to 25 lbs.  Requires eye/hand coordination.   Requires use of standard office equipment. Requires basic math.  Ability to push and/or pull file cabinet drawers weighing up to 5 lbs.  Requires the ability to distinguish letters, numbers and symbols.  Communicate  directly and telephonically with guests and Co-

Stars and read and write in English.   Ability to and comply with Policies and Procedures, Job
Description, daily memorandums, chemical labels (MSDS) and other instructions.

Dept. Head Approval    (Print) ___________________________ Date__________________

HR Review/Approval    (Print) ___________________________ Date__________________Exhibit 10.1

 

SETTLEMENT AGREEMENT

 

This Settlement Agreement (“Settlement
Agreement”) is executed by and between Plaintiff Madwell LLC of 243 Boerum Street, Brooklyn, NY 11206 (“Plaintiff”),
on the one hand, and on the other hand Defendants Long Island Brand Beverages LLC (“LIBB”), Philip Thomas of 16 Ash
Street, Garden City, New York (“Mr. Thomas”) and Paul Vassilakos of 180 Madison Avenue Suite 1702 New York, NY (“Mr.
Vassilakos,” and collectively with LIBB and Mr. Thomas, “Defendants”). Plaintiff and Defendants are collectively
hereinafter referred to as the “Parties.”

 

RECITALS

 

A.WHEREAS,
in 2013 and 2014, Plaintiff provided advertising, marketing and design services to LIBB and incurred expenses on behalf of LIBB
for the purchase of advertising space (the “Advertising Campaign”); and

 

B.WHEREAS,
Plaintiff alleges that it invoiced LIBB for a total of $676,112.15 for services rendered and expenses incurred in the course of
the Advertising Campaign (the “Campaign Fees”); and

 

C.WHEREAS,
LIBB has paid Plaintiff $278,114.15 of the Campaign Fees; and

 

D.WHEREAS,
certain disputes arose between Plaintiff and LIBB with respect to the Advertising Campaign and amounts owed to Plaintiff by LIBB
in connection therewith; and

 

E.WHEREAS,
Plaintiff initiated a lawsuit against Defendants in the New York Supreme Court for the County of Kings, bearing Index Number 509081/2015
(the “Lawsuit”), to, among other things, recover the alleged unpaid portion of the Campaign Fees, plus interest; and

 

F.WHEREAS,
Plaintiff alleges that it is owed $397,998, together with at least $80,000 of contractual interest accrued on the aforesaid unpaid
sum; and

 

    	 	Page 1 of 12	 

     

    

 

G.WHEREAS,
the Parties wish to compromise and settle all of the outstanding controversies between and among them related to the Lawsuit and
Advertising Campaign, with prejudice and without costs, and enter into a mutual release, all on the terms set forth in this Agreement;

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy of which
is hereby admitted and acknowledged, the Parties hereto agree as follows:

 

AGREEMENT

 

1.Incorporation of Recitals. The
above Recitals are incorporated herein by reference, and form a part of this Settlement Agreement.

 

2.Settlement Payment. LIBB will
pay Plaintiff the total Settlement Amount of $440,000 (the “Settlement Amount”) in accordance with the following schedule:

 

a)Initial Payment: On the same
day as the execution of this Agreement by Plaintiff and LIBB (the “Execution Date”), LIBB will pay Plaintiff a lump
sum of $50,000 by executing a wire transfer of $50,000 to from LIBB's attorney's trust account to Plaintiffs bank account.

 

b)Second Payment: No later than
one month after the Execution Date, LIBB will pay $100,000 to Plaintiff in one lump sum by sending a check for $100,000 to Plaintiff
by overnight delivery via FedEx or UPS. By way of example, if the Execution Date is July 30, 2015, then this check must be sent
no later than August 30, 2015.

 

c)Third Payment: No later than
two months after the Execution Date, LIBB will pay $50,000 to Plaintiff in one lump sum by sending a check for $50,000 to Plaintiff
by overnight delivery via FedEx or UPS. By way of example, if the Execution Date is July 30, 2015, then this check must be sent
no later than September 30, 2015.

 

    	 	Page 2 of 12	 

     

    

 

d)Fourth Payment: No later than
three months after the Execution Date, LIBB will pay $80,000 to Plaintiff in one lump sum by sending a check for $80,000 to Plaintiff
by overnight delivery via FedEx or UPS. By way of example, if the Execution Date is July 30, 2015, then this check must be sent
no later than October 30, 2015.

 

e)Fifth Payment: No later than
four months after the Execution Date, LIBB will pay $80,000 to Plaintiff in one lump sum by sending a check for $80,000 to Plaintiff
by overnight delivery via FedEx or UPS. By way of example, if the Execution Date is July 30, 2015, then this check must be sent
no later than November 30, 2015.

 

f)Sixth Payment: No later than
five months after the Execution Date, LIBB will pay $80,000 to Plaintiff in one lump sum by sending a check for $80,000 to Plaintiff
by overnight delivery via FedEx or UPS. By way of example, if the Execution Date is July 30, 2015, then this check must be sent
no later than December 30, 2015.

 

3.Effective Date: This Settlement
Agreement shall become effective on the day that the funds clear from the check for the Initial Payment to Plaintiff’s bank
account.

 

4.Affidavit of Confession of Judgment

 

a)Simultaneously with execution of
this Settlement Agreement, Mr. Thomas shall execute on behalf of LIBB and have notarized the Affidavit for Confession of Judgment
attached hereto as Exhibit A (the “Affidavit”). The original Affidavit shall immediately be delivered to Plaintiff’s
counsel’s office: Law Office of Matthew C. Heerde, 222 Broadway 19th Floor, New York, NY 10038

 

b)The Affidavit shall be held by Plaintiff’s
attorneys under the following conditions: (A) upon full payment of the Settlement Amount, the Affidavit shall be destroyed; or
(B) upon Default as provided below, such original may be filed with the Court and enforced.

 

    	 	Page 3 of 12	 

     

    

 

5.Default. 

  

a)If LIBB fails to timely make any
payment required by Section 2 above, LIBB may cure such failure by remitting such payment in full within fifteen (15) calendar
days from the sending of notice of nonpayment to LIBB as designated hereunder. In the event that LIBB fails to timely cure their
failure to pay by 5 p.m. New York time on the fifteenth such calendar day following the sending of such notice, LIBB will at that
time be deemed to be in “Default”.

 

b)In the event of Default, all unpaid
portions of the Settlement Amount plus stipulated interest of $50,000 (the “Unpaid Balance”), shall become immediately
due, owing, and payable to Plaintiff, and Plaintiff shall be entitled to file for entry of judgment for the Unpaid Balance against
LIBB in the Supreme Court of the State of New York, County of Nassau, without further notice, and shall have execution therefor,
pursuant to the Affidavit and in accordance with this Agreement.

 

c)The Parties agree that the $50,000
stipulated interest described in Section 5(b) above is a fair and reasonable assessment of Plaintiff’s damages in the event
that LIBB breaches its obligations under Section 2.;

 

d)Upon LIBB’s Default, LIBB shall
be liable for Plaintiff’s reasonable costs and attorney fees incurred in enforcing the judgment described in the Affidavit.

 

6.Dismissal of Action. Upon the
clearing of funds from the check for the Initial Payment, Plaintiff and Defendants, through their attorneys, shall execute a Stipulation
of Discontinuance with Prejudice (attached hereto as Exhibit B), which Plaintiff shall promptly then file with the Court.

 

 

    	 	Page 4 of 12	 

     

    

 

 

7.Other Covenants and Consideration

 

		a)	By Plaintiff. Plaintiff, on behalf of itself and on behalf of its successors and assigns, hereby covenants and agrees
that it:

 

(i)shall not take any action, including
without limitation the making of disparaging statements (oral or in writing) concerning any Defendant(s), that is reasonably likely
to injure, impair or damage the relationships between any Defendant and any lessor, lessee, vendor, supplier, customer, distributor,
franchisee, franchisor, employer, employee, consultant, state or municipal governing body or agency, or other business associate
of or person or entity having any relationship with such Defendant, as such relationship relates to such Defendant’s employment
or conduct of business, except that nothing in this subsection 7(a)(i) shall prohibit Plaintiff from testifying or providing information
in response to a lawful subpoena or in the course of any court action.

 

		b)	By Defendants. Defendants, on behalf of themselves and on behalf of their successors and assigns, hereby covenant and
agree that they:

 

(i)shall not take any action, including
without limitation the making of disparaging statements (oral or in writing) concerning Plaintiff, that is reasonably likely to
injure, impair or damage the relationships between Plaintiff and any lessor, lessee, vendor, supplier, customer, distributor, franchisee,
franchisor, employer, employee, consultant, state or municipal governing body or agency, or other business associate of or person
or entity having any relationship with Plaintiff, as such relationship relates to Plaintiff’s employment or conduct of business,
, except that nothing in this subsection 7(b)(i) shall prohibit Defendants from testifying or providing information in response
to a lawful subpoena or in the course of any court action.

 

    	 	Page 5 of 12	 

     

    

 

8.Mutual General Releases by Parties.

 

a)Defendants’ Release.
Defendants, on their own behalf and on behalf of their agents, partners, shareholders, predecessors, attorneys, creditors, heirs,
executors, trustees, administrators, assigns, successors-in-interest of any kind, and all of their respective past and present
officers and directors (collectively, the “Defendant Releasing Parties”), do hereby release, remise, relieve and forever
discharge and shall hold harmless and indemnify (if any other person or entity files a claim by, on behalf of, or through any Defendant
Releasing Party), Plaintiff, and each and all of Plaintiff’s affiliates, partners, associates, employees, former employees,
independent contractors, former independent contractors, attorneys, agents, successors, assigns, personal representatives, predecessors,
related organizations, heirs, executors, trustees, and administrators (collectively, the “Plaintiff Released Parties”)
of and from any and all costs (including costs of suit, attorney’s fees and expenses), expenses, monies due or owing, suits,
debts, obligations, claims, damages, demands, liabilities, actions and causes of action of every kind and character, known by the
Defendant Releasing Parties as of the effective date hereof, whether contingent or absolute, which any Defendant Releasing Party
has had or now has against any of the Plaintiff Released Parties, accruing by reason of any cause, matter or thing whatsoever from
the beginning of time to the effective date hereof, including but not limited to any matter, cause or thing arising out of or related
to the Lawsuit..

 

b)Plaintiff’s Release.
Plaintiff, on its own behalf and on behalf of its agents, partners, shareholders, predecessors, attorneys, creditors, heirs, executors,
trustees, administrators, assigns, successors-in-interest of any kind, and all of their respective past and present officers and
directors (collectively, the “Plaintiff Releasing Parties”), hereby release, remise, relieve and forever discharge
and shall hold harmless and indemnify (if any other person or entity files a claim by, on behalf of, or through any Plaintiff Releasing
Party), Defendants, and each and all of Defendants’ affiliates, employees, former employees, independent contractors, former
independent contractors, attorneys, agents, successors, assigns, personal representatives, predecessors, related organizations,
heirs, executors, trustees, and administrators (collectively, the “Defendant Released Parties”) of and from any and
all costs (including costs of suit, attorney’s fees and expenses), expenses, monies due or owing, suits, debts, obligations,
claims, damages, demands, liabilities, actions and causes of action of every kind and character, known by the Plaintiff Releasing
Parties as of the effective date hereof, whether contingent or absolute, which any Plaintiff Releasing Party has had or now has
against any of the Defendant Released Parties, accruing by reason of any cause, matter or thing whatsoever from the beginning of
time to the effective date hereof, including but not limited to any matter, cause or thing arising out of or related to the Lawsuit.

 

    	 	Page 6 of 12	 

     

    

 

c)Miscellaneous Provisions Related
to the Releases.

 

(i)It is the specific intent and purpose
of this instrument to be a full, final and complete, remise, release, discharge, compromise, settlement, accord and satisfaction
of any and all claims or causes of action of every kind and character asserted or that could have been asserted by or among the
Parties in connection with the Action.

 

(ii)Each of the Parties acknowledges
that he/she/it may hereafter discover facts different from, or in addition to, those which he/she/it now believes to be true with
respect to any and all of the liabilities, claims, causes of action, damages, costs or demands herein released. The Parties hereby
waive any rights, claims, or causes of action that might arise as a result of such different or additional claims or facts as they
exist as of the execution date of Agreement, under any theory, statute, or cause of action. The Parties acknowledge that they understand
the significance and consequence of such release and such waiver of any claims.

 

    	 	Page 7 of 12	 

     

    

 

(iii)Each of the Parties acknowledges
that he/she/it is fully informed and aware of his/her/its rights to receive independent legal advice regarding the advisability
of entering into this release and has received independent legal advice from his/her/its attorney with regard to the advisability
of executing this release. Each of the Parties further acknowledges that he/she/it has made an investigation of the facts pertaining
to this release as he/she/it has deemed necessary, and, further, acknowledges that he/she/it has not relied upon any statement
or representation of any of the other Parties.

 

(iv)Each of the Parties acknowledges
and agrees that in executing this Agreement and the other documents delivered under this Agreement, he/she/it does not rely and
has not relied upon any representation, warranty or statement made by any other Party or any of its agents, representatives or
attorneys with regard to the subject matter, basis or effect of this Agreement and any of the other documents delivered under this
Agreement or otherwise.

 

(v)Notwithstanding anything in this
Agreement to the contrary, no Party is released from such Party’s covenants, obligations, representations, warranties and
agreements to the extent set forth in this Agreement.

 

9.Bankruptcy.LIBB represents
that it has no intention of filing any form of Bankruptcy Petition with any court. In the unlikely event that any such petition
is filed prior to the effective and complete payment of the entire Settlement Amount, LIBB agrees that Plaintiff may dispute any
alleged dischargability of the remaining settlement payments due.

 

10.Waiver. No provision hereof
may be waived unless in writing and signed by the Party whose rights are thereby waived. Waiver of any one provision herein shall
not be deemed to be a waiver of any other provision herein (whether similar or not), nor shall such waiver constitute a continuing
waiver unless otherwise expressly so provided

 

    	 	Page 8 of 12	 

     

    

 

11.Successors, Assigns, Transferees.
This Settlement Agreement shall be binding upon and inure to the benefit of, all Parties and, as applicable, each Party’s
officers, directors, shareholders, affiliates, parent companies, subsidiaries, related entities, employees, representatives, legal
representatives, acquirers, partners, principals, attorneys, agents, predecessors, heirs, successors, assignees, and transferees
of the Parties.

 

12.Review and Investigation.
Defendants acknowledge and agree that they have carefully read and reviewed this Settlement Agreement and its Exhibits and understand
them fully, and Defendants specifically do not rely upon any statement, representation, legal opinion, accounting opinion or promise
of Plaintiff or any person representing such other Party, in executing this Settlement Agreement or in making the settlement provided
for herein, except as expressly stated in this Settlement Agreement. Each party has made such an investigation of the law and facts
pertaining to this Settlement Agreement and of all matters pertaining thereto as it deems necessary. This Settlement Agreement
has been carefully read by, and the contents hereof are known and understood by the Parties, and it is signed freely by each party
executing this Settlement Agreement.

 

13.Non-Admission of Liability.  
Neither this Agreement nor anything contained herein shall constitute or is to be construed as an admission by any of the Parties
as evidence of any liability, wrongdoing or unlawful conduct.

 

14.Availability of Counsel. The
Parties each acknowledge and agree that they have had a reasonable opportunity to consult with legal counsel before executing this
Agreement.

 

    	 	Page 9 of 12	 

     

    

 

15.Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of New York, without giving effect to any choice of law or conflict
of law provision or rule that would cause the application of the laws of any jurisdictions other than the State of New York.

 

16.Venue. Any dispute regarding
the interpretation or obligations under this Settlement Agreement shall be adjudicated in the Supreme Court of New York, Kings
County. All Parties hereby agree and consent that they are subject to the Jurisdiction of New York Courts for the purpose of any
dispute regarding this Settlement Agreement.

 

17.Attorneys Fees. In the event
of any court action to enforce this Settlement Agreement or regarding the interpretation of this Settlement Agreement, the prevailing
party in such action shall be entitled to recover its reasonable costs and attorneys fees.

 

18.Entire Agreement.This
Agreement constitutes a single integrated written agreement expressing the entire agreement and understanding between the Parties
concerning the subject matter hereof and supersedes and replaces all prior negotiations or proposed agreements, whether written
or oral. All prior and contemporaneous negotiations and agreements are deemed incorporated and merged into this Agreement and are
deemed to have been abandoned if not so incorporated. No modification or amendment of this Agreement or any waiver of any right
granted hereunder shall be of any force or effect unless reduced to writing and signed by the Party claimed to be bound thereby.
This Agreement is intended to be, and is, final and binding upon the Parties hereto according to the terms hereof regardless of
any claims of mistake of fact or law.

 

 

    	 	Page 10 of 12	 

     

    

 

 

19.Notices.All notices permitted
under this Agreement shall be sent:

 

	For LIBB:	Long Island Brand Beverages
	 	Attn: Phil Thomas
	 	116 Charlotte Avenue
	 	Hicksville, NY 11801
	 	 
	 	 
	With Copies to:	Eric Sharp, Esq.
	 	Via email: esharp@galganolaw.com
	 	 
	 	 
	For Plaintiff:	Madwell LLC
	 	Attn: David Eisenman
	 	243 Boerum Street
	 	Brooklyn, New York 11206
	 	 
	With Copies to:	Matthew C. Heerde, Esq.
	 	Via email: mheerde@heerdelaw.com

  

or such other addresses which the Parties may designate in writing
from time to time.

 

20.Authority to Execute. Each
party hereto hereby represents and warrants to the other party that (a) the person signing on its behalf below has the capacity
and authority to execute and deliver this Settlement Agreement, and (b) no consent or approval of any other person or entity is
required to authorize it to enter into this Settlement Agreement and to perform its obligations hereunder.

 

21.Counterparts. This Agreement
may be signed in counterpart copies, each of which shall constitute an original, with the same force and effect as if each of the
Parties hereto has signed a single instrument.

 

    	 	Page 11 of 12	 

     

    

 

 

22.Facsimile and Electronic Signatures.
Facsimile or electronic copies of signatures of the Parties hereto shall have the same force and effect as original ink signatures.

 

23.Costs. Except for the payments
referenced herein, each Party shall bear its own attorneys' fees and costs, and shall not seek to recover such fees and costs from
any other Party.

 

IN WITNESS THEREOF, the undersigned Parties
have executed this Agreement.

 

 

	/s/
    Philip Thomas	 	July
    31, 2015	 
	Long
    Island Brand Beverages LLC	 	Date	 
	By:
    Philip Thomas, Managing Member	 	 	 
	 	 	 	 
	 	 	 	 
	/s/
    David Eisenman	 	July
    30, 2015	 
	Madwell
    LLC	 	Date	 
	By:
    David Eisenman, CEO	 	 	 
	 	 	 	 
	/s/
    Philip Thomas	 	July
    31, 2015	 
	Philip
    Thomas, Individually	 	Date	 
	 	 	 	 
	/s/
    Paul Vassilakos	 	July
    31, 2015	 
	Paul
    Vassilakos, Individually	 	Date	 

 

 

    	 	Page 12 of 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}]]