Document:

EXHIBIT
10.1

 

FORM
OF SUBSCRIPTION AGREEMENT

 

SPO Medical
Inc.

 

Attention:
Michael Braunold, CEO

 

Gentlemen:

 

1.Subscription.

 

(a)
Subject to the terms and conditions of this Agreement the undersigned (the "Purchaser") hereby irrevocably subscribes
for and agrees to purchase shares of the common stock, par value $0.01 per share (each a “Share” and collectively,
the “Shares”) of SPO Medical Inc. (hereinafter the “Company”) at a price per Share of USD $0.025 of the
Company as defined below (the Shares sometimes referred to as the "Units"), for an aggregate purchase price (the “Purchase
Price ") and for the number of Shares set forth below and on the signature page hereto.

 

(b)
Payment. Upon execution of this Agreement, the Purchaser will pay by wire transfer to an account designated by the Company the
full amount of the purchase price of the Units for which the Purchaser is subscribing.

 

(c)
The “Closing Date” shall be the date that the Purchase Price is transmitted by wire transfer or otherwise credited
to or for the benefit of the Company. Subject to the satisfaction or waiver of the terms and conditions of this Agreement, on
the Closing Date, the Purchaser shall purchase and the Company shall sell to the Purchaser the Shares for the Purchase Price indicated
thereon, as described above in this Agreement.

 

2.                 
Representations, Warranties and Covenants of the Purchaser. The Purchaser hereby acknowledges that his investment in the
Units involves a high degree of risk and his economic circumstances are such that he can afford the loss of his investment. The
Purchaser further acknowledges, represents, warrants and agrees as follows:

 

(a)The
Purchaser is an “accredited investor” as defined by Rule 501 under the Securities Act of 1933, as amended (the “Act”),
and the Purchaser is capable of evaluating the merits and risks of Subscriber’s investment in the Company and has the capacity
to protect the Purchaser’s own interests. The Purchaser meets
the requirements of at least one of the suitability standards for an “accredited investor” as set forth on the Accredited
Investor Certification contained herein;

 

(b)
None of the Units have been registered under the Act or any state securities laws. The Purchaser understands that the offering
and sale of the Units is intended to be exempt from registration under the Act, by virtue of Section 4(2) and/or Section 4(6)
thereof and the provisions of Regulation D promulgated thereunder, based, in part, upon the representations, warranties and agreements
of the Purchaser contained in this Agreement;

 

(c)Neither
the Securities and Exchange Commission nor any state securities commission has approved the sale of the Units or the common stock
being purchased hereby or into which the warrants are convertible nor has the Commission passed upon or endorsed the merits of
the Offering;

 

(d)The
Purchaser has had the opportunity to obtain any information, to the extent the Company had such information in its possession
or could acquire it without unreasonable effort or expense, necessary to verify the accuracy of the information contained in all
documents received or reviewed in connection with the purchase of the Units and has had the opportunity to meet with representatives
of the Company and to have them answer any questions and provide such additional information regarding the terms and conditions
of this particular investment and the finances, operations, business and prospects of the Company deemed relevant by the Purchaser.

 

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(e)The
Purchaser has been furnished with or has had access at the EDGAR Website of the Securities and Exchange Commission to the Company's
Form 10-K filed on April 11, 2013 for the fiscal year ended December 31, 2012, together with all subsequent filings made available
at the EDGAR website prior to the date hereof (hereinafter referred to collectively as the "Reports"). In evaluating
the suitability of an investment in the Company, the Purchaser has not relied upon any representation or other information (oral
or written) other than as contained in the Reports. The Purchaser and its advisors, if any, have been furnished with or have been
given access to all materials relating to the business, finances and operations of the Company and materials relating to the offer
and sale of the Units which have been requested by the Purchaser. The Purchaser and its advisors, if any, have been afforded the
opportunity to ask questions of the Company and its management and have received complete and satisfactory answers to any such
inquiries;

 

(f)The
Purchaser is unaware of, is in no way relying on, and did not become aware of the Offering of the Units through or as a result
of, any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement
or other communications published in any newspaper, magazine or similar media or broadcast over television or radio, in connection
with the Offering and is not subscribing for Units and did not become aware of the Offering as a result of any seminar or meeting
to which the Purchaser was invited by, or any solicitation of a subscription by, a person not previously known to the Purchaser;

 

(g)The
Purchaser has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees
or the like relating to this Agreement or the transactions contemplated hereby;

 

(h)The
Purchaser has sufficient knowledge and experience in financial, tax, and business matters, and, in particular, investments in
securities, so as to enable the Purchaser to utilize the information made available to the Purchaser to evaluate the merits and
risks of an investment in the Units and to make an informed investment decision with respect thereto;

 

(i)The
Purchaser is acquiring the Units solely for his own account for investment and not with a view to resale or distribution thereof,
in whole or in part. The Purchaser has no agreement or arrangement, formal or informal, with any person to sell or transfer all
or any part of the Units purchased hereunder, and the Purchaser has no plans to enter into any such agreement or arrangement;

 

(j)The
Purchaser must bear the substantial economic risks of the investment in the Units indefinitely because none of the securities
included in the Units may be sold, hypothecated or otherwise disposed of unless subsequently registered under the Act and applicable
state securities laws or an exemption from such registration is available. The Purchaser acknowledges and understands legends
shall be placed on the certificates representing the shares of common stock into which the warrants are convertible to the effect
that they have not been registered under the Act or applicable state securities laws. Appropriate notations thereof will be made
on the securities issued substantially as follows:

 

“THE
SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND
MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT OR IN A TRANSACTION WHICH, IN THE OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, QUALIFIES AS AN EXEMPT TRANSACTION UNDER THE ACT AND THE RULES AND REGULATIONS
PROMULGATED THEREUNDER.”

 

(k)In
addition, the certificates representing the common stock of the Company, and any and all securities issued in replacement thereof
or in exchange therefore, shall bear such legend as may be required by the securities laws of the jurisdiction in which Purchaser
resides.

 

(l)The
Purchaser has adequate means of providing for the purchaser’s current financial needs and foreseeable contingencies and
has no need for liquidity of the investment in the Units for an indefinite period of time;

 

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(m)The
Purchaser: (i) if a natural person represents that he has reached the age of 21 and has full power and authority to execute and
deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and
has adequate means for providing for his current financial needs and anticipated future needs and possible personal contingencies
and emergencies and has no need for liquidity in the investment in the Units; (ii) if a corporation, partnership, limited liability
company or partnership, association, joint stock company, trust, unincorporated organization or other entity represents that such
entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation
of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other
organizational documents, such entity has full power and authority to execute and deliver this Agreement and all other related
agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the securities constituting
the Units, the execution and delivery of this Agreement has been duly authorized by all necessary action, this Agreement has been
duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; and (iii) if
executing this Agreement in a representative or fiduciary capacity, represents that it has full power and authority to execute
and deliver this Agreement in such capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation,
limited liability company or partnership, or other entity has full right and power to perform pursuant to this Agreement and make
an investment in the Company, and that this Agreement constitutes a legal, valid and binding obligation of such entity. The execution
and delivery of this Agreement will not violate or be in conflict with any order, judgment, injunction, agreement or controlling
document to which the Purchaser is a party or by which it is bound;

 

(n)
The Purchaser acknowledges that the Company is in the development stage, has been engaged in business for only a short period
of time and has limited operations. The Purchaser is knowledgeable about investment considerations in development-stage companies.
The Purchaser’s overall commitment to investments which are not readily marketable is not excessive in view of the Purchaser’s
net worth and financial circumstances and the purchase of the Units will not cause such commitment to become excessive. The investment
in the Units is suitable one for the Purchaser;

 

(o)The
Purchaser agrees that it may not sell, transfer, pledge, encumber, hypothecate, permit to be subject to a security interest, grant
an option in or otherwise dispose of the Units being acquired hereunder or the shares of Common Stock into which the warrants
are to be convertible unless such securities are registered under the Securities Act or unless an opinion of counsel satisfactory
is delivered to the Company that no such registration is required is delivered to the Company;

 

(p)
The Purchaser represents that the foregoing representations and warranties are true and correct
as of the date hereof and, unless it otherwise notifies the Company prior to the Closing Date shall be true and correct as of
the Closing Date.

  

4.Representations
and Warranties of the Company. The Company represents and warrants to the Purchaser as follows:

 

4.1            Organization
and Authority; Subsidiaries. The Company is a corporation validly existing and in good standing under the laws of the State
of Delaware, with full power and authority to enter into and perform this Agreement and the other agreements contemplated hereby
to which it is a party. The Company is duly licensed or qualified to do business as a foreign corporation and is in good standing
under the laws of all other jurisdictions in which the character of the properties owned or leased by it therein or in which the
transaction of its business makes such qualification necessary, except for jurisdictions where failure to become licensed or to
so qualify could not reasonably be expected to have a material adverse effect on the business and operations of the Company taken
as a whole. The Company has all requisite corporate power and authority to own its properties, to carry on its business as now
conducted, and to enter into and perform its obligations under this Agreement.

 

4.2            Authorization;
Binding Effect. The Company has taken all corporate actions which are necessary to authorize the execution, delivery and performance
of this Agreement and the consummation of the transactions contemplated hereby.

 

4.3            No
Bankruptcy or Insolvency. The Company has not filed any voluntary petition in bankruptcy or been adjudicated a bankrupt or
insolvent, filed by petition or answer seeking any reorganization, liquidation, dissolution or similar relief under any federal
bankruptcy, insolvency, or other debtor relief law, or sought or consented to or acquiesced in the appointment of any trustee,
receiver, conservator or liquidator of all or any substantial part of its properties. No court of competent jurisdiction has entered
an order, judgment or decree approving a petition filed against the Company seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any federal bankruptcy act, or other debtor relief law, and no
other liquidator has been appointed of the Company or of all or any substantial part of its properties.

 

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4.4                         
No Litigation. There are no actions, suits or proceedings of any type pending or, to the knowledge of the Company, threatened,
against the Company which if adversely determined could have a material adverse effect on the business and operations of the Company
taken as a whole.

 

4.5                         
No Violation or Conflict. Assuming the representations and warranties of the Purchaser in Section
3 are true and correct neither the issuance and sale of the Units do, nor the issuance of the Warrant Shares upon the exercise
of the Warrant will, (i) violate, conflict with, result in a breach of, or constitute a default (or an event which with the giving
of notice or the lapse of time or both would be reasonably likely to constitute a default) under (A) the articles or certificate
of incorporation, charter or bylaws of the Company, or (B) the terms of any bond, debenture, note or any other evidence of indebtedness,
or any agreement, stock option or other similar plan, indenture, lease, mortgage, deed of trust or other instrument to which the
Company is a party or by which it is bound.

 

4.6                         
Investment Company. The Company is not, and is not controlled by, an “Investment Company” within the meaning
of the Investment Company Act.

 

4.7                         
Governmental Consents and Notices. No consent, approval or authorization of or designation, declaration or filing with
any governmental authority on the part of the Company is required in connection with the valid execution and delivery of this
Agreement, or the offer, sale or issuance of the Units, or the consummation of any other transaction contemplated hereby, except
qualification (or taking such action as may be necessary to secure an exemption from qualification, if available) of the offer
and sale of the Units under applicable state and federal securities laws, which qualification if required, will be accomplished
in a timely manner or the filing of Form D with the Commission and such filings as are required to be made under applicable state
securities laws.

 

4.8                         
Units and Common Stock. The Common Stock when issued, will be duly authorized, validly issued, fully paid and nonassessable.

 

4.9                         
Intellectual Property Rights and Interests. The Company has not received any written or oral notice or claim that the Company
is infringing the intellectual property rights of any other person or legal entity or that the Company is in material breach or
default of any license granting to the Company rights in any intellectual property. To the knowledge of the Company as of the
date hereof, without having conducted any independent investigation or analysis of its intellectual property rights and the use
thereof by third parties, no third party is infringing upon any intellectual property rights proprietary to the Company. 

 

4.10                     
Filings. At the times of their respective filings, all of the Reports complied in all
material respects with the requirements of the Securities Act of 1933, as amended, and the Exchange Act and in each case the rules
and regulations of the Commission promulgated thereunder. None of the Company’s Reports contained,
at the time they were filed, any untrue statement of a material fact or omitted to state any material fact required to be stated
therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading.

 

4.11                     
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales of any security or solicited any offers to buy any security under circumstances
that would cause the offering of the Securities pursuant to this Agreement to be integrated with prior offerings by the Company
for purposes of the Securities Act in a manner that would prevent the Company from selling the Securities pursuant to Regulation
D and Rule 506 thereof under the Securities Act, nor will the Company or any of its affiliates or subsidiaries take any action
or steps that would cause the offering of the Securities to be integrated with other offerings.

 

4.12                     
No Fees. The Company has not employed any broker or finder or incurred any liability for any brokerage or investment banking
fees, commissions, finders' structuring fees, financial advisory fees or other similar fees in connection with the transactions
contemplated by this agreement.

 

4.13                     
Rights of Other Affecting the Transaction. There are no preemptive rights of any person to acquire
the Units or the Warrant Shares or any portion thereof. No other party has a currently exercisable right of first refusal which
would be applicable to any or all of the transactions contemplated by the Transaction Agreements. On the Closing Date, the Company
shall provide Purchaser in writing with the total number of outstanding shares of the Company’s common stock, which number
shall be true and correct. 

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5.Undertaking.
Until such time as all the Shares or the Warrant Shares are saleable by the Purchaser without restriction, the Company will prepare
and furnish to the Purchaser and make publicly available in accordance with Rule 144 or any successor rule such information as
is required for the Purchasers to sell the Securities under Rule 144 under the Securities Act of 1933, as amended. The Company
further covenants that it will take such further action as any holder of Securities may reasonably request, all to the extent
required from time to time to enable such Person to sell such Securities without registration under the Securities Act within
the limitation of the exemptions provided by Rule 144.

 

6.Indemnification.
The Company agrees to indemnify and hold harmless the Purchaser, and its officers, directors, employees, agents, control persons
and affiliates against all losses, liabilities, claims, damages, and expenses whatsoever (including, but not limited to, any and
all expenses incurred in investigating, preparing, or defending against any litigation commenced or threatened) based upon or
arising out of any actual or alleged false representation or warranty, or misrepresentation or omission to state a material fact,
or breach by the Company of any covenant or agreement made by the Company herein or in any other document delivered in connection
with this Agreement, except to the extent such losses, liabilities, claims, damages, and expenses
result primarily from Purchaser's failure to perform any covenant or agreement contained in this Agreement
or the Purchaser's or its officer’s, director’s, employee’s or agent’s illegal or willful misconduct,
gross negligence, recklessness or bad faith (in each case, as determined by a non-appealable judgment to such effect) in performing
its obligations under this Agreement.

 

7.Irrevocability;
Binding Effect. The Purchaser hereby acknowledges and agrees that the subscription hereunder is irrevocable by the Purchaser,
except as required by applicable law, and that this Agreement shall survive the death or disability of the Purchaser and shall
be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives,
and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser hereunder shall be joint and
several and the agreements, representations, warranties, and acknowledgments herein shall be deemed to be made by and be binding
upon each such person and such person’s heirs, executors, administrators, successors, legal representatives, and permitted
assigns.

 

8.Amendment.
This Agreement shall not be amended, modified or waived except by an instrument in writing signed by the party against whom
any such amendment, modification or waiver is sought.

 

9.Notices.
Any notice or other communication required or permitted to be given hereunder shall be in writing

 

(a)
if to Company,

 

SPO
Medical Inc.

3
HaGavish St. Kfar Saba, Israel 44425.

Telephone
No.: (011-972-9) 966-2520

Telecopier
No.: (011-972-9) 966-2525

mbraunold@spoglobal.com

 

with a copy
to:

 

Aboudi
& Brounstein

            Law Offices

Rechov
Gavish 3, POB 2432

Kfar
Saba Industrial Zone 44641 Israel

Telephone
No.: (011-972-9) 764-4833

Telecopier
No.: (011-972-9) 764-4834

Gerald@a-blaw.com

 

(b)
if to the Purchaser, at the address set forth on the signature page hereof .

 

10.Assignability.This
Agreement and the rights, interests and obligations hereunder are not transferable or assignable by the Purchaser.

 

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11.Applicable
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard
to its conflicts of laws principles.

 

12.
Use of Pronouns. All pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the person or persons referred to may require.

 

13.Confidentiality.
The Purchaser acknowledges and agrees that any information or data it has obtained from or about the Company, including, without
limitation, the business plan of the Company, not otherwise properly in the public domain, was received in confidence. The Purchaser
agrees not to divulge, communicate or disclose, except as may be required by law or for the performance of this Agreement, or
use to the detriment of the Company or for the benefit of any other person or persons, or misuse in any way, any confidential
information of the Company, including any scientific, technical, trade or business secrets of the Company and any scientific,
technical, trade or business materials that are treated by the Company as confidential or proprietary, including, but not limited
to, ideas, discoveries, inventions, developments and improvements belonging to the Company and confidential information obtained
by or given to the Company about or belonging to third parties.

 

14.Miscellaneous.

 

		(a)	This
                                                                                                                           Agreement
                                                                                                                           constitutes
                                                                                                                           the
                                                                                                                           entire
                                                                                                                           agreement
                                                                                                                           between
                                                                                                                           the
                                                                                                                           Purchaser
                                                                                                                           and
                                                                                                                           the
                                                                                                                           Company
                                                                                                                           with
                                                                                                                           respect
                                                                                                                           to
                                                                                                                           the
                                                                                                                           subject
                                                                                                                           matter
                                                                                                                           hereof
                                                                                                                           and
                                                                                                                           supersede
                                                                                                                           all
                                                                                                                           prior
                                                                                                                           oral
                                                                                                                           or
                                                                                                                           written
                                                                                                                           agreements
                                                                                                                           and
                                                                                                                           understandings,
                                                                                                                           if
                                                                                                                           any,
                                                                                                                           relating
                                                                                                                           to
                                                                                                                           the
                                                                                                                           subject
                                                                                                                           matter
                                                                                                                           hereof.
                                                                                                                           The
                                                                                                                           terms
                                                                                                                           and
                                                                                                                           provisions
                                                                                                                           of
                                                                                                                           this
                                                                                                                           Agreement
                                                                                                                            may
                                                                                                                           be
                                                                                                                           waived,
                                                                                                                           or
                                                                                                                           consent
                                                                                                                           for
                                                                                                                           the
                                                                                                                           departure
                                                                                                                           wherefrom
                                                                                                                           granted,
                                                                                                                           only
                                                                                                                           by
                                                                                                                           a written
                                                                                                                           document
                                                                                                                           executed
                                                                                                                           by
                                                                                                                           the
                                                                                                                           party
                                                                                                                           entitled
                                                                                                                           to
                                                                                                                           the
                                                                                                                           benefits
                                                                                                                           of
                                                                                                                           such
                                                                                                                           terms
                                                                                                                           or
                                                                                                                           provisions.

		(b)	The
                                                                                                                           Purchaser’s
                                                                                                                           representations
                                                                                                                           and
                                                                                                                           warranties
                                                                                                                           made
                                                                                                                           in
                                                                                                                           this
                                                                                                                           Agreement
                                                                                                                           shall
                                                                                                                           survive
                                                                                                                           the
                                                                                                                           execution
                                                                                                                           and
                                                                                                                           delivery
                                                                                                                           hereof
                                                                                                                           and
                                                                                                                           delivery
                                                                                                                           of
                                                                                                                           the
                                                                                                                           Units
                                                                                                                           to
                                                                                                                           the
                                                                                                                           Purchaser.
                                                                                                                           

		(c)	Each
                                                                                                                           of
                                                                                                                           the
                                                                                                                           parties
                                                                                                                           hereto
                                                                                                                           shall
                                                                                                                           pay
                                                                                                                           its
                                                                                                                           own
                                                                                                                           fees
                                                                                                                           and
                                                                                                                           expenses
                                                                                                                           (including
                                                                                                                           the
                                                                                                                           fees
                                                                                                                           of
                                                                                                                           any
                                                                                                                           attorneys,
                                                                                                                           accountants,
                                                                                                                           appraisers
                                                                                                                           or
                                                                                                                           others
                                                                                                                           engaged
                                                                                                                           by
                                                                                                                           such
                                                                                                                           party)
                                                                                                                           in
                                                                                                                           connection
                                                                                                                           with
                                                                                                                           this
                                                                                                                           Agreement
                                                                                                                           and
                                                                                                                           the
                                                                                                                           transactions
                                                                                                                           contemplated
                                                                                                                           hereby
                                                                                                                           whether
                                                                                                                           or
                                                                                                                           not
                                                                                                                           the
                                                                                                                           transactions
                                                                                                                           contemplated
                                                                                                                           hereby
                                                                                                                           are
                                                                                                                           consummated.

		(d)	This
                                                                                                                           Agreement
                                                                                                                           may
                                                                                                                           be
                                                                                                                           executed
                                                                                                                           in
                                                                                                                           one
                                                                                                                           or
                                                                                                                           more
                                                                                                                           counterparts
                                                                                                                           each
                                                                                                                           of
                                                                                                                           which
                                                                                                                           shall
                                                                                                                           be
                                                                                                                           deemed
                                                                                                                           an
                                                                                                                           original,
                                                                                                                           but
                                                                                                                           all
                                                                                                                           of
                                                                                                                           which
                                                                                                                           shall
                                                                                                                           together
                                                                                                                           constitute
                                                                                                                           one
                                                                                                                           and
                                                                                                                           the
                                                                                                                           same
                                                                                                                           instrument.

		(e)	Each
                                                                                                                           provision
                                                                                                                           of
                                                                                                                           this
                                                                                                                           Agreement
                                                                                                                           shall
                                                                                                                           be
                                                                                                                           considered
                                                                                                                           separable
                                                                                                                           and
                                                                                                                           if
                                                                                                                           for
                                                                                                                           any
                                                                                                                           reason
                                                                                                                           any
                                                                                                                           provision
                                                                                                                           or
                                                                                                                           provisions
                                                                                                                           hereof
                                                                                                                           are
                                                                                                                           determined
                                                                                                                           to
                                                                                                                           be
                                                                                                                           invalid
                                                                                                                           or
                                                                                                                           contrary
                                                                                                                           to
                                                                                                                           applicable
                                                                                                                           law,
                                                                                                                           such
                                                                                                                           invalidity
                                                                                                                           or
                                                                                                                           illegality
                                                                                                                           shall
                                                                                                                           not
                                                                                                                           impair
                                                                                                                           the
                                                                                                                           operation
                                                                                                                           of
                                                                                                                           or
                                                                                                                           affect
                                                                                                                           the
                                                                                                                           remaining
                                                                                                                           portions
                                                                                                                           of
                                                                                                                           this
                                                                                                                           Agreement.

		(f)	Paragraph
                                                                                                                           titles
                                                                                                                           are
                                                                                                                           for
                                                                                                                           descriptive
                                                                                                                           purposes
                                                                                                                           only
                                                                                                                           and
                                                                                                                           shall
                                                                                                                           not
                                                                                                                           control
                                                                                                                           or
                                                                                                                           alter
                                                                                                                           the
                                                                                                                           meaning
                                                                                                                           of
                                                                                                                           this
                                                                                                                           Agreement
                                                                                                                           as
                                                                                                                           set
                                                                                                                           forth
                                                                                                                           in
                                                                                                                           the
                                                                                                                           text.

 

Accredited
Investor Certification and Questionnaire

(Check
the appropriate box(es))

 

1.Please
check the appropriate box.

 

____(i)I
am a natural person who had individual income of more than $200,000 in each of the most recent two years or joint income with
my spouse in excess of $300,000 in each of the most recent two years (in each case including foreign income, tax exempt income
and full amount of capital gains and losses but excluding any income of other family members and any unrealized capital appreciation)
and reasonably expect to reach that same income level for the current year); 

  

		____(ii)	I
                                                                                                                                am
                                                                                                                                a
                                                                                                                                natural
                                                                                                                                person
                                                                                                                                whose
                                                                                                                                individual
                                                                                                                                net
                                                                                                                                worth
                                                                                                                                (i.e.,
                                                                                                                                total
                                                                                                                                assets
                                                                                                                                in
                                                                                                                                excess
                                                                                                                                of
                                                                                                                                total
                                                                                                                                liabilities),
                                                                                                                                or
                                                                                                                                joint
                                                                                                                                net
                                                                                                                                worth
                                                                                                                                with
                                                                                                                                my
                                                                                                                                spouse,
                                                                                                                                will
                                                                                                                                at
                                                                                                                                the
                                                                                                                                time
                                                                                                                                of
                                                                                                                                purchase
                                                                                                                                of
                                                                                                                                the
                                                                                                                                Units
                                                                                                                                described
                                                                                                                                in
                                                                                                                                this
                                                                                                                                subscription
                                                                                                                                agreement
                                                                                                                                to
                                                                                                                                which
                                                                                                                                this
                                                                                                                                certification
                                                                                                                                is
                                                                                                                                attached
                                                                                                                                be
                                                                                                                                in
                                                                                                                                excess
                                                                                                                                of
                                                                                                                                $1,000,000;

 

    	6

    	 

    

For
purposes of calculating net worth under this Category (ii), (A) the undersigned’s primary residence shall not be included
as an asset, (B) indebtedness that is secured by the undersigned’s primary residence, up to the estimated fair market value
of the primary residence at the time of the sale of securities, shall not be included as a liability, (C) to the extent that the
indebtedness that is secured by the primary residence is in excess of the fair market value of the primary residence, the excess
amount shall be included as a liability, and (d) if the amount of outstanding indebtedness that is secured by the primary residence
exceeds the amount outstanding 60 days prior to the execution of this Subscription Agreement, other than as a result of the acquisition
of the primary residence, the amount of such excess shall be included as a liability.

 

____(iii)The
undersigned is an entity (other than a trust) in which all of the equity owners are “accredited investors” within
one or more of the above categories.  If relying upon this Category alone, each equity owner must complete a separate
copy of this Agreement;  

 

____(iv)The
Purchaser is a trust, which trust has total assets in excess of $5,000,000, which is not formed for the specific purpose of acquiring
the Units offered hereby and whose purchase is directed by a sophisticated person as described in Rule 506(b)(ii) of Regulation
D and who has such knowledge and experience in financial and business matters that he is capable of evaluating the risks and merits
of an investment in the Units;

 

____(v)I
am a director or executive officer of the Company; or

 

____(vi)The
Purchaser is an entity (other than a trust) in which all of the equity owners meet the requirements of at least one of the above
subparagraphs.

 

The
undersigned agrees that the undersigned will notify the Company at any time on or prior to the Closing in the event that the representations
and warranties in this Accredited Investor Certification and Questionnaire shall cease to be true, accurate and complete.

 

(2)Suitability
(please answer each question)

 

a)     
For an individual, please describe any college or graduate degrees held by you:

 

 

b)     
For all subscribers, please state whether you have you participated in other private placements before:

 

	YES	 	 	NO	 

  

 

(c)If
your answer to question (b) above was “YES”, please indicate frequency of such prior participation in private placements
of:

 

	 	Public

                                                                      Companies
	Private

                                                                      Companies

	Frequently	

	

	Occasionally	

	

	Never	

	

 

(d)For
individuals, do you expect your current level of income to significantly decrease in the foreseeable future?

 

	YES	 	 	NO	 

  

(e)For
trust, corporate, partnership and other institutional subscribers, do you expect your total assets to significantly decrease in
the foreseeable future?

 

	YES	 	 	NO	 

    	7

    	 

    

  

 

(f)For
all subscribers, are you familiar with the risk aspects and the non-liquidity of investments such as the Securities for which
you seek to purchase?

 

	YES	 	 	NO	 

 

(g)For
all subscribers, do you understand that there is no guarantee of financial return on this investment and that you run the risk
of losing your entire investment?

 

	YES	 	 	NO	 

  

 

(3)Manner
in which title is to be held: (circle one)

 

(a)Individual
Ownership

(b)Community
Property

(c)Joint
Tenant with Right of Survivorship (both parties must sign)

(d)Partnership

(e)Tenants
in Common

(f)Company

(g)Trust

(h)Other

 

(4)NASD
Affiliation.

 

Are
you affiliated or associated with an NASD member firm (please check one):

 

	YES	 	 	NO	 

 

   

If
Yes, please describe:

 

_________________________________________________________

_________________________________________________________

_________________________________________________________

 

*If
subscriber is a Registered Representative with an NASD member firm, have the following acknowledgment signed by the appropriate
party:

 

The
undersigned NASD member firm acknowledges receipt of the notice required by the NASD Conduct Rules.

 

 

_________________________________

Name
of NASD Member Firm

 

 

By:
______________________________

Authorized
Officer

 

Date:
____________________________

 

The
undersigned is informed of the significance to the Company of the foregoing representations and answers contained in this Purchaser
Questionnaire and such answers have been provided under the assumption that the Company will rely on them.

 

[Remainder
of page intentionally blank, signature pages follow]

    	8

    	 

    

 

 

IN
WITNESS WHEREOF, the Purchaser has executed this Agreement this ___ day of May, 2013.

 

$

(Aggregate
Purchase Price)                                                                         #
Shares (Purchase Price / 0.025) 

 

 

If
the Purchaser is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or TRUST:

 

 

[NAME
OF ENTITY]

[ADDRESS]

_______________________________

Federal
Taxpayer

Identification
Number

 

 

 

 

 

 

By:
_______________________

 

Name:
_______________________

 

Title:
_______________________ 

 

SUBSCRIPTION
ACCEPTED AND AGREED TO

THIS
____DAY OF May, 2013.

 

 

SPO
Medical Inc.

 

By:
_____________________________

Name:
Michael Braunold

Title:
CEO

 

    	9DR - 6.30.2013 - Ex 10.4

Exhibit 10.4
EXECUTION VERSION

EXCHANGE AGREEMENT
This EXCHANGE AGREEMENT (this “Agreement”) is dated as of July 17, 2013, by and among (i) Diamond Resorts International, Inc., a Delaware corporation (the “Company”), (ii) Diamond Resorts Parent, LLC, a Nevada limited liability company (“DRP”), (iii) the current (or future, as applicable) members of DRP listed on Schedule A hereto (collectively, the “Exchanging Members,” and each, an “Exchanging Member”), and (iv) the current members of DRP that will no longer hold any units of DRP as of the consummation of the LLC Exchange (as defined below) (collectively, the “Former Members,” and each, a “Former Member;” and together with the Exchanging Members, collectively, the “Members,” and each, a “Member”).

WHEREAS, the Company is contemplating an initial public offering of its common stock, $0.01 par value per share (the “Common Stock”), which would contemplate an implied value of the shares of Common Stock to be issued to the Exchanging Members pursuant to this Agreement of at least $684,260,000 (such an initial public offering, the “IPO”);

WHEREAS, prior to the consummation of the IPO and the LLC Exchange (as defined below), Stephen J. Cloobeck, David F. Palmer and Lowell D. Kraff, each of whom currently hold Class B Units of DRP, will contribute such Class B Units of DRP to entities controlled by such individuals (the “Contributions”), pursuant to contribution agreements between such individuals and such entities (each, a “Contribution Agreement,” and collectively, the “Contribution Agreements”), following which such entities will become Exchanging Members;

WHEREAS, immediately prior to the Redemption (as defined below), pursuant to that certain Redemption Agreement, by and among Best Amigos Partners, LLC (“BAP”), Cloobeck Diamond Parent, LLC (“CDP”), Marc Byron (“Byron”) and Lowell Kraff  (the “BAP Redemption Agreement”): (i) BAP, which is currently a member of CDP and holds Class B Units of CDP, will redeem certain units of BAP held by Byron in exchange for a portion of the Class B Units of CDP; and (ii) at the direction of Byron, BAP will issue the Class B Units of CDP that would otherwise be issued to Byron to Byron Diamond Investments, LLC (“BDI”), a single-member limited liability company of which Byron is the sole member, and BDI will become a member of CDP (the “BAP Redemption”);

WHEREAS, immediately prior to the IPO and the LLC Exchange (as defined below), certain individuals and entities holding units of CDP will redeem their units of CDP in exchange for Class A Units of DRP, and Trivergance Diamond Holdings, LLC, one of the members of CDP (the “Distributing Member”), will simultaneously distribute its Class A Units of DRP to the ultimate beneficial owners of the units of CDP held by the Distributing Member (the “Redemption”), all pursuant to that certain Redemption Agreement, by and among CDP, such members of CDP and such members of the Distributing Member (the “Redemption Agreement”), following which such members of CDP and such ultimate beneficial owners of the units of CDP held by the Distributing Member will become Exchanging Members;

WHEREAS, immediately prior to the IPO and the LLC Exchange (as defined below), 1818 Partners, LLC (“1818”), which is currently a member of DRP, will make a proportional distribution 

1

to its members of the units of DRP held by 1818 (the “1818 Distribution”), pursuant to that certain Distribution Agreement (the “Distribution Agreement”) by and among 1818, DRP and such members, following which such members will become Exchanging Members; 

WHEREAS, in contemplation of, and as part of a single transaction with, the IPO, the Exchanging Members desire to transfer their respective Class A units of DRP, together with all Class B units owned by the Exchanging Members (collectively, the “Units”), to the Company in exchange for shares of Common Stock (the “LLC Exchange”);

WHEREAS, as of the date of this Agreement, DRP owns 100 shares of Common Stock, representing all of the issued and outstanding shares of Common Stock, and concurrently with the LLC Exchange, the Company will redeem all of the shares of Common Stock then held by DRP for nominal consideration (the “Company Redemption”);

WHEREAS, certain of the Members party to this Agreement are also party to the BAP Redemption Agreement, the Redemption Agreement, the Distribution Agreement, a Contribution Agreement and/or another document entered into concurrently with, or contemplated by, this Agreement (each, an “Other Agreement,” and collectively, the “Other Agreements”);

WHEREAS, in contemplation of, and as part of a single transaction with, the IPO, Diamond Resorts Holdings, LLC (“DRH”), a wholly-owned subsidiary of DRP, will merge with and into DRP (the “DRH Merger”), pursuant to that certain Plan of Merger, by and among DRP and DRH (the “DRH Plan of Merger”); 

WHEREAS, immediately following the LLC Exchange and the DRH Merger, and as part of a single transaction with the IPO, the LLC Exchange and the DRH Merger, DRP, a wholly-owned subsidiary of the Company, will merge with and into the Company (the “DRI Merger” and, together with the Contributions, the BAP Redemption, the Redemption, the LLC Exchange, the Company Redemption and the DRH Merger, the “Reorganization Transactions”) pursuant to that certain Agreement of Merger by and between the Company and DRP (the “DRI Merger Agreement”);

WHEREAS, as part of a single transaction with the IPO, the Company will enter into a transaction (the “Island One Transaction”) to acquire management contracts, unsold vacation ownership interests and a portfolio of consumer loans from Island One, Inc. and Crescent One, LLC pursuant to the Island One Transaction Agreement;

WHEREAS, the IPO, the Reorganization Transactions and the Island One Transaction have been approved by the Board of Directors of the Company, the Board of Managers of DRP and the Members, to the extent necessary; and

WHEREAS, the Company, DRP and the Members intend this Agreement, together with the DRI Merger Agreement, the DRH Plan of Merger and the Island One Transaction Agreement, to serve as the “Plan of Incorporation” of the Company for purposes of Section 351 of the Internal Revenue Code of 1986, as amended (the “Code”).

2

NOW, THEREFORE, in consideration of the premises and of the mutual agreements, covenants and provisions herein contained and for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

ARTICLE I
DEFINITIONS

The following terms shall have the corresponding meanings for purposes of this Agreement:

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by or is under common control with such Person.  As used in this definition, the term “control” means the possession, directly or indirectly, of any other power to direct or cause the direction of the management and policies of such a Person, whether through ownership of voting securities, by contract or otherwise.  

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

“Governmental Authority” means any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of the United States, any foreign country, or any domestic or foreign state, province, county, city, other political subdivision or any other similar body or organization exercising similar powers or authority. 

“Island One Equityholder” means Timeshare Acquisitions, LLC, a Delaware limited liability company.

“Island One Transaction Agreement” means that certain Transaction Agreement, by and among the Company, Island One, Inc., Crescent One, LLC and the Island One Equityholder, dated as of July 1, 2013, pursuant to which the Company will acquire management contracts, unsold vacation ownership interests and a portfolio of consumer loans from Island One, Inc. and Crescent One, LLC. 

“Law” means the common law of any jurisdiction, or any provision of any foreign, federal, state or local law, statute, rule, regulation, order, Permit, judgment, injunction, decree or other decision of any court or other tribunal or Governmental Authority legally binding on the relevant Person or its properties.

“Lien” means any lien, claim, charge, restriction, option, preemptive right, mortgage, hypothecation, assessment, pledge, encumbrance or security interest of any kind or nature whatsoever.

 “Permit” means any permit, license, certification, approval, consent, notice, waiver, qualification, filing, exemption and authorization by or of, or registration with, any Governmental Authority.

3

“Person” means any individual, sole proprietorship, general partnership, limited partnership, limited liability company, joint venture, trust, unincorporated association, corporation, Governmental Authority or other entity or group (which term shall include a “group” as such term is defined in Section 13(d)(3) of the Exchange Act).

“Securityholders Agreement” means that certain Fourth Amended and Restated Securityholders Agreement, dated as of July 21, 2011, by and among DRP and the holders of units of DRP party thereto.

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote generally in the election of directors thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity (other than a corporation), a majority of the membership, partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity (other than a corporation) if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control any managing director of such limited liability company, partnership, association or other business entity.

ARTICLE II
LLC EXCHANGE AND COMPANY REDEMPTION

Section 2.1.    LLC Exchange and Company Redemption.

(a) As of the Effective Time (as defined below), each Exchanging Member hereby assigns and transfers to the Company all right, title and interest in, to and with respect to all of such Exchanging Member’s Units, including all Units obtained by such Exchanging Member pursuant to the Redemption Agreement.

(b) As of the Effective Time, the Company hereby accepts the assignment and transfer by each Exchanging Member of such Exchanging Member’s Units and hereby assumes and agrees to perform and be bound by any and all of the conditions, covenants and obligations of such Exchanging Member pursuant to the Fifth Amended and Restated Operating Agreement of Diamond Resorts Parent, LLC, dated as of October 15, 2012, as amended to date (the “LLC Agreement”).

(c) At the Effective Time, (i) each Exchanging Member holding Class A Units of DRP (the “Class A Units”) shall receive, in consideration for the exchange of such Class A Units, the number of shares of Common Stock equal to (A) the number of Class A Units then held by such Exchanging Member, multiplied by (B) the sum of (1) the Pre-IPO Price plus (2) the Excess Value per Unit, and then divided by (C) the IPO Price; and (ii) each Exchanging Member holding Class 

4

B Units of DRP (the “Class B Units”) shall receive, in consideration for the exchange of such Class B Units, the number of shares of Common Stock equal to the result of (A) the number of Class B Units held by such Exchanging Member, multiplied by (B) the Excess Value per Unit, and then divided by (C) the IPO Price.  For purposes hereof, (i) the “Pre-IPO Price” means $493,042.41 per unit, which represents $684,260,000 divided by the 1,387.832 Class A Units outstanding; (ii) the “Excess Value per Unit” means the result of (A) the amount by which the Exchanging Member Aggregate Value exceeds $684,260,000, divided by (B) the aggregate number of outstanding Units; (iii) the “Exchanging Member Aggregate Value” means the product of (A) the IPO Price, multiplied by (B) the result of (I) 59,294,118 minus (II) the number of shares of Common Stock to be issued to the Island One Equityholder pursuant to the Island One Transaction Agreement; and (iv) the “IPO Price” means the price per share at which shares of Common Stock are being sold to the public in the IPO (i.e., the gross IPO price per share, before any underwriting discounts or commissions.  By way of example only, sample calculations for the LLC Exchange, based upon an assumed IPO Price of $17.00 per share, are set forth on Schedule B hereto.

(d) The Company will issue to an Exchanging Member, as applicable, only whole shares of Common Stock. Any fractional shares of Common Stock that would result from the LLC Exchange will be rounded to the nearest full share (with 0.5 shares rounded up to a whole share).
(e) Concurrently with the LLC Exchange, at the Effective Time, the Company shall redeem the 100 shares of Common Stock held by DRP in exchange for nominal consideration, and DRP shall accept such nominal consideration in exchange for such shares of Common Stock held by DRP.  

Section 2.2.    Termination of Rights; Release of Obligations. From and after the Effective Time, the entire capital account and share of profits and losses of each Exchanging Member shall be deemed to be the capital account and share of profits and losses of the Company, and such Exchanging Member shall have no further interest or rights of any kind in or with respect to such Exchanging Member’s Units or under the LLC Agreement. From and after the Effective Time, the Company shall be the sole member of DRP, and each Exchanging Member shall be released from all further obligations under the LLC Agreement.

Section 2.3.    Consent of Board of Managers. By its execution hereof, DRP acknowledges that the Board of Managers of DRP (the “Board of Managers”) (i) has approved the form of this Agreement, (ii) acknowledges receipt of a duly executed copy of this Agreement and (iii) in accordance with the provisions of the LLC Agreement, consents to the assignment and transfer of the Exchanging Member’s Units to the Company and to the admission of the Company as a new member of DRP.

Section 2.4.    Effective Time. The LLC Exchange shall occur and be given effect immediately prior to the consummation of the IPO. The date and time when the LLC Exchange shall be deemed to occur is referred to in this Agreement as the “Effective Time."

ARTICLE IIIA
REPRESENTATIONS AND WARRANTIES OF THE EXCHANGING MEMBERS

5

As of the date hereof and as of the Effective Time, each Exchanging Member severally represents and warrants to the Company as follows:

Section 3A.1.    Organization and Authority; Enforceability. 

(a) If such Exchanging Member is an individual, such Exchanging Member is of sound mind and has full legal capacity to enter into, execute and deliver this Agreement and each Other Agreement to which such Exchanging Member is a party and perform his or her obligations hereunder and thereunder, and each of this Agreement and such Other Agreement(s) has been duly executed and delivered by such Exchanging Member and constitutes a legal, valid and binding obligation of such Exchanging Member, enforceable against such Exchanging Member in accordance with its terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or other laws relating to or affecting creditors' rights generally and the exercise of judicial discretion in accordance with general equitable principles.

(b) If such Exchanging Member is an entity, (i) such Exchanging Member is duly organized, validly existing and in good standing under the laws of the state of its organization, and has full power, right and authority to enter into and perform its respective obligations under this Agreement and each Other Agreement to which it is a party; (ii) the execution, delivery and performance of this Agreement and such Other Agreement(s) have been duly and properly authorized by all requisite action in accordance with applicable law and with the organizational documents of such Exchanging Member; and (iii) each person executing this Agreement and such Other Agreement(s) has the power and authority to execute and deliver this Agreement and such Other Agreement(s), to consummate the transactions contemplated hereby and thereby and to cause such Exchanging Member to perform its obligations hereunder and thereunder. 

Section 3A.2.    Title. Such Exchanging Member owns (or, in the case of Units to be acquired pursuant to the Redemption Agreement, at the Effective Time will own), beneficially and of record, such Exchanging Member’s Units, free and clear of any Liens that would affect the ability of such Exchanging Member to exchange such Units pursuant to Section 2.1 hereof (other than any such Liens disclosed in writing to the Company or DRP prior to the date hereof and for which such Exchanging Member will obtain a waiver prior to the Effective Time (the “Applicable Liens”)). At the Effective Time, any and all Applicable Liens with respect to such Exchanging Member’s Units will have been waived, and the Company will acquire good and valid title to such Exchanging Member’s Units, free and clear of any Liens other than any Lien created by the Company.

Section 3A.3.    No Conflicts; No Consents. The execution, delivery and performance of this Agreement and each Other Agreement to which such Exchanging Member is a party, and the consummation of the transactions contemplated hereby and thereby, will not (i) violate or result in a breach of any of the terms, conditions or provisions of the organizational documents of such Exchanging Member, if such Exchanging Member is an entity; (ii) violate or result in a breach of any Law applicable to such Exchanging Member or by which any of such Exchanging Member’s property or assets may be bound; or (iii) contravene, result in a violation or breach of or default under (with or without the giving of notice or the lapse of time or both), permit any party to terminate, amend or accelerate the provisions of, or result in the imposition of any Lien (or any obligation to 

6

create any Lien) upon any of the property or assets of such Exchanging Member under any contract, agreement, indenture, letter of credit, mortgage, security agreement, pledge agreement, deed of trust, bond, note, guarantee, surety obligation, warranty, license, franchise, Permit, power of attorney, lease, instrument or other agreement to which such Exchanging Member is a party or by which any of such Exchanging Member’s property or assets may be bound.  No Permit, authorization, consent or approval of or by, or any notification of or filing with, any Person is required by such Exchanging Member in connection with the execution, delivery and performance of this Agreement or any Other Agreement to which such Exchanging Member is a party, or the consummation by such Exchanging Member of the transactions contemplated hereby or thereby.

Section 3A.4.    Accredited Investor. Such Exchanging Member is an “accredited investor,” as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”).

Section 3A.5.    Investment Purpose. Such Exchanging Member is acquiring shares of Common Stock under this Agreement for such Exchanging Member’s own account for investment purposes, and not with a view to, or for resale in connection with, any distribution thereof other than in compliance with the Securities Act and other applicable securities laws. Such Exchanging Member acknowledges that such Exchanging Member must bear the economic risk of an investment in the Common Stock for an indefinite period of time because, among other reasons, the shares of Common Stock received by such Exchanging Member have not been registered under the Securities Act and, therefore, such securities cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available. Such Exchanging Member also understands and acknowledges that transfers of the shares of Common Stock received are further restricted by applicable United States federal and state and foreign securities laws, that any certificates issued to represent the shares of Common Stock received by such Exchanging Member pursuant to this Agreement will bear legends to the foregoing effect, and that stop transfer instructions may be given to the transfer agent for the Common Stock consistent with the foregoing.

Section 3A.6.    Access to Information. Such Exchanging Member understands the risks of, and other considerations relating to such Exchanging Member’s acquisition and ownership of the shares of Common Stock received. Such Exchanging Member has been provided an opportunity to ask questions of, and has received answers satisfactory to him, her or it from, the Company, DRP and their representatives regarding the shares of Common Stock received, and has obtained a copy of the Registration Statement (as defined below) and any and all additional information from the Company and its representatives that such Exchanging Member deems necessary regarding the shares of Common Stock received.

Section 3A.7.    Evaluation of and Ability to Bear Risks. Such Exchanging Member has such knowledge and experience in financial affairs that such Exchanging Member is capable of evaluating the merits and risks of, and other considerations relating to, the ownership of the shares of Common Stock received, and has not relied upon any representations, warranties or agreements other than those set forth in this Agreement in connection with such Exchanging Member’s acquisition of the shares of Common Stock received. Such Exchanging Member's financial situation is such that such Exchanging Member can afford to bear the economic risk of holding the shares 

7

of Common Stock for an indefinite period of time, and such Exchanging Member can afford to suffer the complete loss of such Exchanging Member’s investment in such securities.

Section 3A.8.    No Dispositions. Except as contemplated in connection with the IPO, such Exchanging Member does not currently have, and at the Effective Time will not have, any plan, agreement, commitment, intention or arrangement, whether written or oral, to dispose of any of the shares of Common Stock to be received by such Exchanging Member. For purposes of this representation, a “disposition” shall include any direct or indirect offer, offer to sell, sale, contract of sale or grant of any option to purchase, gift, transfer, pledge or other disposition, including any disposition of the economic or other risks of ownership through hedging transactions or derivatives and any other transaction that would constitute a “constructive sale” within the meaning of Section 1259 of the Code, including, without limitation, a short-sale, forward sale, equity swap or other derivative contract with respect to the Common Stock or substantially identical property, or other transaction having substantially the same effect as the foregoing.

ARTICLE IIIB
REPRESENTATIONS AND WARRANTIES OF THE FORMER MEMBERS

As of the date hereof and as of the Effective Time, each Former Member severally represents and warrants to the Company as follows:

Section 3B.1.    Organization and Authority; Enforceability. 

(a) If such Former Member is an individual, such Former Member is of sound mind and has full legal capacity to enter into, execute and deliver this Agreement and each Other Agreement to which such Former Member is a party and perform his or her obligations hereunder and thereunder, and each of this Agreement and such Other Agreement(s) has been duly executed and delivered by such Former Member and constitutes a legal, valid and binding obligation of such Former Member, enforceable against such Former Member in accordance with its terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or other laws relating to or affecting creditors' rights generally and the exercise of judicial discretion in accordance with general equitable principles.

(b) If such Former Member is an entity, (i) such Former Member is duly organized, validly existing and in good standing under the laws of the state of its organization, and has full power, right and authority to enter into and perform its respective obligations under this Agreement and each Other Agreement to which it is a party; (ii) the execution, delivery and performance of this Agreement and such Other Agreement(s) have been duly and properly authorized by all requisite action in accordance with applicable law and with the organizational documents of such Former Member; and (iii) each person executing this Agreement and such Other Agreement(s) has the power and authority to execute and deliver this Agreement and such Other Agreement(s), to consummate the transactions contemplated hereby and thereby and to cause such Former Member to perform its obligations hereunder and thereunder.

8

Section 3B.2.    No Conflicts; No Consents. The execution, delivery and performance of this Agreement and each Other Agreement to which such Former Member is a party, and the consummation of the transactions contemplated hereby and thereby, will not (i) violate or result in a breach of any of the terms, conditions or provisions of the organizational documents of such Former Member, if such Former Member is an entity; (ii) violate or result in a breach of any Law applicable to such Former Member or by which any of such Former Member’s property or assets may be bound; or (iii) contravene, result in a violation or breach of or default under (with or without the giving of notice or the lapse of time or both), permit any party to terminate, amend or accelerate the provisions of, or result in the imposition of any Lien (or any obligation to create any Lien) upon any of the property or assets of such Former Member under any contract, agreement, indenture, letter of credit, mortgage, security agreement, pledge agreement, deed of trust, bond, note, guarantee, surety obligation, warranty, license, franchise, Permit, power of attorney, lease, instrument or other agreement to which such Former Member is a party or by which any of such Former Member’s property or assets may be bound.  No Permit, authorization, consent or approval of or by, or any notification of or filing with, any Person is required by such Former Member in connection with the execution, delivery and performance of this Agreement or any Other Agreement to which such Former Member is a party, or the consummation by such Former Member of the transactions contemplated hereby or thereby.

ARTICLE IV
ADDITIONAL INFORMATION AND AGREEMENTS

Section 4.1.    Company. Each Member understands and acknowledges that the Company is a Delaware corporation organized to be the direct or indirect owner of all or substantially all of the equity interest in DRP and the Subsidiaries of DRP. Each Exchanging Member further understands and acknowledges that the Company has not conducted any business operations prior to the date of this Agreement.

Section 4.2.    Consent and Waiver under LLC Agreement.  By executing this Agreement, each Member hereby consents to the Reorganization Transactions and waives any and all provisions of the LLC Agreement that might prevent the consummation of the Reorganization Transactions, including the notice provision contained in Section 11.3 of the LLC Agreement.

Section 4.3.    Amendment to LLC Agreement. Each Member acknowledges and agrees that, at the Effective Time, this Agreement shall constitute an amendment of those provisions of the LLC Agreement which are inconsistent with the provisions of this Agreement. Each Exchanging Member consents to and approves such amendment, subject to its effectiveness. The provisions of the LLC Agreement as in effect on the date hereof will continue to apply to all Members until the Effective Time.

Section 4.4    Consent, Waiver and Termination of Securityholders Agreement.  By executing this Agreement, each Member that is a party to the Securityholders Agreement hereby consents to the Reorganization Transactions, waives any and all provisions of the Securityholders Agreement that might prevent the consummation of the Reorganization Transactions and 

9

acknowledges and agrees that the Securityholders Agreement shall terminate upon the consummation of the IPO. 

Section 4.5.    Additional Agreements. In connection herewith, each Exchanging Member shall execute and deliver each of the following:

(a) if such Exchanging Member is listed on Schedule C hereto, a Stockholders' Agreement, in substantially the form attached as EXHIBIT A hereto, pursuant to which such Exchanging Member will be subject to, among other things, certain voting requirements; and

(b) an underwriters’ lock-up agreement (the “Lock-Up Agreement”), in substantially the form attached as EXHIBIT B hereto, pursuant to which such Exchanging Member will be subject to certain transfer restrictions in connection with the IPO.

Section 4.6.    Registration Rights.  By executing this Agreement, each Member agrees that, without the prior consent of Credit Suisse Securities (USA) LLC (“Credit Suisse”), the representative of the underwriters in the IPO, it will not, during the Lock-Up Period (as defined in the Lock-Up Agreement), make any demand for or exercise any right with respect to, the registration of any Common Stock or any security convertible into or exercisable or exchangeable for Common Stock (other than exercising registration rights of such Member in existence as of the date hereof solely for purposes of participating in the IPO pursuant to that certain Underwriting Agreement to be entered into by the Company with Credit Suisse and the other underwriters in the IPO (the “Underwriting Agreement”)).

Section 4.7.    Other Transfer Restrictions; Joinder. Each Member who is an employee, officer, manager or director of the Company or DRP hereby agrees to comply in all respects with any trading restrictions generally applicable to employees of the Company or DRP. No transfer of Units (or units of CDP to be redeemed for Units pursuant to the Redemption Agreement) by a Member shall be deemed effective unless and until the transferee has agreed to assume all of such Member’s rights and obligations under this Agreement by executing a joinder to this Agreement.  Any purported sale or transfer of Units (or units of CDP to be redeemed for Units pursuant to the Redemption Agreement) without compliance with the obligation in the preceding sentence shall be null and void ab initio.

Section 4.8.    Power of Attorney.  Solely to facilitate the Reorganization Transactions, and solely with respect to each Member’s capacity as a member of the Company, a former member of CDP or the owner of a former member of CDP, each of the Members hereby appoints Howard S. Lanznar, Jared T. Finkelstein and Mark D. Wood, and each of them severally, as such Member’s true and lawful attorneys-in-fact and agents, with the power to act, with or without the others and with full power of substitution and resubstitution, for and on behalf of such Member and in such Member’s name, place and stead, to perform any and all acts and do all things and to execute any and all documents or instruments which are reasonably determined, in good faith, by said attorneys-in-fact and agents to be reasonably necessary or advisable in connection with the further documentation and consummation of the Reorganization Transactions, solely to the extent the same need to be executed, taken or done by a Member in such Member’s capacity as a member of the 

10

Company, a former member of CDP or the owner of a former member of CDP, including the power and authority to grant any approvals, consents or waivers or do any other acts, matters or things which shall be reasonably determined, in good faith, by said attorneys-in-fact and agents to be necessary or advisable in connection with the further documentation and consummation of the Reorganization Transactions, including authorizing or implementing any transfers, transactions or actions reasonably determined, in good faith, by said attorneys-in-fact and agents to be necessary or advisable in connection therewith, hereby granting to such attorneys-in-fact and agents, and each of them, full power to do and perform any and all acts and things reasonably necessary or advisable to be done as such Member might or could do in person, and hereby ratifying and confirming all that said attorneys-in-fact and agents and each of them may lawfully do or cause to be done by virtue hereof.  This power of attorney is a power coupled with an interest, is given by each Member in consideration of the benefits to accrue to such Member in connection with this Agreement and the Reorganization Transactions and in recognition of the reliance thereon by the Company, shall survive the death, incapacity or dissolution of any Member, and is irrevocable until the earlier of (i) termination of this Agreement in accordance with its terms and (ii) the consummation of the Reorganization Transactions.  Notwithstanding anything in this Section 4.8 to the contrary, the attorneys-in-fact and agents shall (i) take all actions in good faith and in a manner consistent with the terms of this Agreement, and (ii) not take any action to amend this Agreement or this Section 4.8 without the consent of the Member granting this power of attorney.

Section 4.9    Other Agreements.  Each Member that is party to any Other Agreement hereby covenants to the Company that such Member shall perform its obligations pursuant to, and enforce its rights under, such Other Agreement and acknowledges and agrees that the Company is an intended third-party beneficiary of such obligations and rights and is entitled to enforce the same, and that the Company is entitled to rely upon the representations and warranties contained therein.

Section 4.10    Shell Company Status.  The Company has not been, and after the consummation of the IPO will not be, a company as defined in Rule 144(i)(1)(i).  

ARTICLE V
TAX TREATMENT

The parties hereto intend the LLC Exchange, the DRH Merger and the DRI Merger, together with the IPO and certain other additional contributions to the Company in exchange for shares of Common Stock that are being made in contemplation of the IPO, to qualify as a transaction governed by Section 351 of the Code and will report and treat the LLC Exchange as a transaction governed by Section 351 of the Code for income tax purposes. Each party hereto will not take, and will cause such party's Affiliates and representatives not to take, any actions or positions which could be reasonably expected to prevent the LLC Exchange, together with the IPO, from qualifying as a transaction governed by Section 351 of the Code.

ARTICLE VI
MISCELLANEOUS

11

Section 6.1.    Amendments.  This Agreement may not be amended, modified or waived in any material respect without the consent of (i) the Board; (ii) a Majority-in-Interest of the Common Members; (iii) a Majority-in-Interest of the Investors; and  (iv) for so long as the CDP Threshold is met, the CDP Members holding a majority of the Class A Common Units held by all CDP Members; provided; however, that any amendment, modification or waiver shall not be binding upon an Exchanging Member if it would (i) disproportionately reduce the value of the shares of Common Stock and/or cash, as the case may be, to be received by such Exchanging Member (A) with respect to any Class A Units held by such Exchanging Member, relative to the other Class A Units, and (B) with respect to any Class B Units held by such Exchanging Member, relative to the other Class B Units, (ii) amend the LLC Agreement in a manner that would require the further consent of such Exchanging Member without obtaining the consent of such Exchanging Member, (iii) would materially alter the right or interest of any Member in the Profits, Losses or distributions of the Company or materially alter the rights or interests of any Member under any material provision of this Agreement other than as the result of the issuance of Common Units, then such amendment, modification or waiver shall also require the consent of all Members who would be similarly adversely affected by such amendment; provided, further, that if any such amendment, modification or waiver of any provision of this Agreement would materially and adversely affect the rights, interests or obligations of any Investor hereunder in a manner differently than any other Member holding the same class or series of Units, such amendment, modification or waiver shall not be effective against such Investor without such Investor’s written consent with respect thereto.  The capitalized terms used, but not defined in this Section 6.1 shall have the meanings given to them in the LLC Agreement.

Section 6.2.    Expenses. Each party hereto shall be responsible for all expenses of such party incurred in connection with the transactions contemplated by this Agreement. In the event that it becomes necessary for a party to enforce the provisions of this Agreement against another party, the party prevailing in that enforcement action shall be entitled to recover its reasonable costs of such enforcement action from the non-prevailing party.

Section 6.3.    Notices.

(a) All notices, requests, demands, waivers and other communications to be given by any party hereunder shall be in writing and shall be (i) mailed by first-class, registered or certified mail, postage prepaid, (ii) sent by hand delivery or reputable overnight delivery service or (iii) transmitted by fax or electronic mail (provided that a copy is also sent by reputable overnight delivery service) addressed, in the case of any Member, to such Exchanging Member at the address set forth on the current records of DRP or, in the case of the Company or DRP, to 10600 West Charleston Boulevard, Las Vegas, Nevada 89135, Attention: Chief Administrative Officer, with a copy provided to the attention of the Senior Vice President – Legal at the same address, or, in each case, to such other address as may be specified in writing to the other parties hereto.

(b) All such notices, requests, demands, waivers and other communications shall be deemed to have been given and received (i) if by personal delivery, fax or electronic mail, on the day of such delivery, (ii) if by first-class, registered or certified mail, on the fifth business day after 

12

the mailing thereof or (iii) if by reputable overnight delivery service, on the first business day after the deposit therewith.

Section 6.4.    Termination. If the IPO has not been consummated by September 30, 2013, unless re-executed, this Agreement will be automatically terminated and will be of no further force and effect.

Section 6.5. Representatives, Successors and Assigns. This Agreement shall be  binding upon and inure to the benefit of the respective parties hereto and their respective legatees, legal representatives, successors and assigns; provided that a Member may not assign, delegate or otherwise transfer any of such Member’s rights or obligations under this Agreement except with the prior written consent of the Company, and any assignment without such consent by the Company shall be void.

Section 6.6.    Benefit. Nothing in this Agreement, express or implied, is intended or shall be construed to confer upon or give to any person or other entity (other than DRP or the Company and, to the extent expressly provided herein, a Member) any remedy or claim under or by reason of this Agreement or any term, covenant or condition hereof, all of which shall be for the sole and exclusive benefit of the parties mentioned above in this Section.

Section 6.7.     Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. 

Section 6.8.     Arbitration. Without diminishing the finality and conclusive effect of any determination by the Board of Managers of any matter under this Agreement, which is provided herein to be determined by the Board of Managers, any dispute, controversy or claim arising out of or relating to or concerning the provisions of this Agreement or any of the Exhibits hereto shall be finally settled by arbitration in Las Vegas, Nevada before a member serving on the National Roster of Arbitrators and Mediators of the American Arbitration Association (“AAA”), in accordance with the commercial arbitration rules of the AAA; provided, however, that, in addition to the right to compel arbitration of any dispute or controversy, the Company or DRP may bring an action or special proceeding in a state or federal court of competent jurisdiction sitting in Las Vegas, Nevada, whether or not an arbitration proceeding has theretofore been or is ever initiated, for the purpose of temporarily, preliminarily, or permanently enforcing the provisions of this Agreement or to enforce an arbitration award and, for the purposes of this provision, each Member expressly consents to the jurisdiction of any such court in respect of any such action and waives to the fullest extent permitted by applicable law any objection to personal jurisdiction or to the laying of venue of any such suit, action or proceeding in such court, and irrevocably appoints Howard S. Lanznar as such Member's agent for service of process in connection with any such action or proceeding, who shall promptly advise such participant of any such service of process.

Section 6.9.    Equitable Relief.  Each party to this Agreement acknowledges and agrees that (a) a breach or threatened breach by such party of any of its obligations under this Agreement or any Other Agreement would give rise to irreparable harm to the other parties for which monetary 

13

damages would not be an adequate remedy and (b) in the event of a breach or a threatened breach by such party of any such obligations, the other parties hereto shall, in addition to any and all other rights and remedies that may be available to such parties at law, at equity or otherwise in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction, without any requirement to post a bond or other security, and without any requirement to prove actual damages or that monetary damages will not afford an adequate remedy. Each party to this Agreement agrees that such party will not oppose or otherwise challenge the appropriateness of equitable relief or the entry by a court of competent jurisdiction of an order granting equitable relief, in either case, consistent with the terms of this Section 6.9. 

Section 6.10.    Further Assurances. Each Member agrees to execute such additional documents and take such further action as may be reasonably requested by the Company to effect the provisions of this Agreement.

Section 6.11.    Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute but one and the same instrument. To the extent signed and delivered by means of a fax or other electronic transmission (including .pdf), this Agreement shall be treated in all manner and respect as an original agreement and shall be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person.

Section 6.12.    Entire Agreement. This Agreement, including the Exhibits hereto, supersedes all prior negotiations, agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. Each Member expressly agrees that neither DRP nor the Company has made any representations, warranties, promises or inducements in connection with this Agreement other than as provided herein.

Section 6.13.    Legal Counsel.  The Company and DRP have engaged Katten Muchin Rosenman LLP (“Katten”) in connection with IPO.  Katten has not acted as legal counsel to any other party to this Agreement in connection with this Agreement or the IPO.  No legal counsel or tax advisor has been engaged by the Company or DRP to protect or otherwise represent the interests of the other parties to this Agreement.  Each party to this Agreement engaged, or had the opportunity to engage, legal counsel and tax advisors with respect to the IPO and the preparation of this Agreement.  Horwood Marcus & Berk Chartered acted as legal counsel to each of Trivergance Diamond Sub, LLC, Praesumo Partners, LLC, Best Amigos Partners, LLC, Byron Diamond Investments, LLC and JStone, Inc., and to no other party, in connection with this Agreement.

Section 6.14.    Interpretation.  Article titles and headings to sections are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation hereof.  As used herein, “include,” “includes” and “including” are deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of like import; “writing,” “written” and comparable terms refer to printing, typing, lithography and 

14

other means of reproducing words in a visible form; references to a Person are also to its successors and permitted assigns; “hereof,” “herein,” “hereunder” and comparable terms refer to the entirety hereof and not to any particular article, section or other subdivision hereof or an attachment hereto;  references to any gender include references to the plural and vice versa; references to this Agreement or other documents are as amended or supplemented from time to time; and references to “Article,” “Section” or another subdivision or to an attachment are to an article, section or subdivision hereof or an attachment hereto.

* * *
[Remainder of page intentionally left blank; signature pages follow]

15

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

COMPANY:

DIAMOND RESORTS INTERNATIONAL, INC.

By:    /s/ David F. Palmer                
Name:  David F. Palmer
Title:    President and CEO

DRP:

DIAMOND RESORTS PARENT, LLC

By:    /s/ David F. Palmer                
Name:  David F. Palmer
Title:    President and CEO

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

CLOOBECK DIAMOND PARENT, LLC

By:    /s/ Stephen J. Cloobeck            
Name:  Stephen J. Cloobeck
Title:    Manager

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

BEST AMIGOS PARTNERS, LLC

By:    /s/ Lowell D. Kraff                
Name:  Lowell D. Kraff
Title:    Manager

Address for purposes of notice:

1 N. Wacker Drive
48th Floor
Chicago, IL 60606

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

PRAESUMO PARTNERS, LLC

By:    /s/ Lowell D. Kraff                
Name:  Lowell D. Kraff
Title:    Managing Member

Address for purposes of notice:

1 N. Wacker Drive
48th Floor
Chicago, IL 60606

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

DIAMOND OURSURANCE, LLC

By:    /s/ Lowell D. Kraff                
Name:  Lowell D. Kraff
Title:    Manager

Address for purposes of notice:

1 N. Wacker Drive
48th Floor
Chicago, IL 60606

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

BYRON DIAMOND INVESTMENTS, LLC

By:    /s/ Marc Byron                
Name:  Marc Byron
Title:    Manager

Address for purposes of notice:

2200 Fletcher Avenue
4th Floor
Fort Lee, NJ 07024

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

CHAUTAUQUA MANAGEMENT, LLC

By:    /s/ David F. Palmer                
Name:  David F. Palmer
Title:    Manager

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

CHAUTAUQUA IIA, LLC

By:    /s/ David F. Palmer                
Name:  David F. Palmer
Title:    Manager

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

CHAUTAUQUA IIB, LLC

By:    /s/ Anne Palmer                
Name:  Anne Palmer
Title:    Manager

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

JSTONE, INC.

By:    /s/ Jerry Stone                    
Name:  Jerry Stone
Title:    President

Address for purposes of notice:

1109 Shadow Ridge Drive
Sebring, FL 33872

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

ELI FIELD DISCRETIONARY TRUST FOR SANDRA U/A/D 11/21/78

By:    /s/ Carey Cooper                
Name:  Carey Cooper
Title:    Trustee

Address for purposes of notice:

600 Central Avenue
Suite 138
Highland Park, IL 60035

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

DEIFIK RESORTS, LLC

By:    /s/ Bruce Deifik                
Name:  Bruce Deifik
Title:   Manager

Address for purposes of notice:

251 S. Green Valley Parkway
Unit 2121
Henderson, NV 89012

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

TRIVERGANCE DIAMOND SUB, LLC

By:    /s/ Lowell D. Kraff                
Name:  Lowell D. Kraff
Title:   Authorized Person

Address for purposes of notice:

1 N. Wacker Drive
48th Floor
Chicago, IL 60606

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

LDK HOLDCO, LLC

By:    /s/ Lowell D. Kraff                
Name:  Lowell D. Kraff
Title:   Manager

Address for purposes of notice:

1 N. Wacker Drive
48th Floor
Chicago, IL 60606

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

DRP FRIENDS HOLDING, LLC

By:    /s/ Howard S. Lanznar                
Name:  Howard S. Lanznar
Title:   Manager

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

DRP HOLDCO, LLC

By:    /s/ Zachary D. Warren                
Name:  Zachary D. Warren
Title:   Authorized Person

Address for purposes of notice:

c/o Josh Blosenski
Guggenheim Partners
330 Madison Ave.
New York, NY 10173

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

SILVER ROCK FINANCIAL, LLC

By:    /s/ Jeffrey Green                
Name:  Jeffrey Green
Title:   Authorized Signatory

Address for purposes of notice:

1250 4th Street
Santa Monica, CA 90401

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

IN – FP1 LLC

By:    /s/ Jeffrey Green                
Name:  Jeffrey Green
Title:   Authorized Signatory

Address for purposes of notice:

1250 4th Street
Santa Monica, CA 90401

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

BDIF LLC

By:    /s/ Jeffrey Green                
Name:  Jeffrey Green
Title:   Authorized Signatory

Address for purposes of notice:

1250 4th Street
Santa Monica, CA 90401

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

CM – NP LLC

By:    /s/ Jeffrey Green                
Name:  Jeffrey Green
Title:   Authorized Signatory

Address for purposes of notice:

1250 4th Street
Santa Monica, CA 90401

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

THE HARTFORD GROWTH OPPORTUNITIES FUND

By: Wellington Management Company, LLP, as     investment adviser

By:    /s/ Steven M. Hoffman            
Name: Steven M. Hoffman
Title:   Vice President and Counsel

Address for purposes of notice:

c/o Wellington Management Company, LLC
280 Congress Street
Boston, MA 02210

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

HARTFORD GROWTH OPPORTUNITIES HLS FUND

By: Wellington Management Company, LLP, as     investment adviser

By:    /s/ Steven M. Hoffman            
Name: Steven M. Hoffman
Title:   Vice President and Counsel

Address for purposes of notice:

c/o Wellington Management Company, LLC
280 Congress Street
Boston, MA 02210

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

QUISSET INVESTORS (BERMUDA) L.P.

By: Wellington Management Company, LLP, as     investment adviser

By:    /s/ Steven M. Hoffman            
Name: Steven M. Hoffman
Title:   Vice President and Counsel

Address for purposes of notice:

c/o Wellington Management Company, LLC
280 Congress Street
Boston, MA 02210

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

By: Wellington Management Company, LLP, as     investment adviser

By:    /s/ Steven M. Hoffman            
Name: Steven M. Hoffman
Title:   Vice President and Counsel

Address for purposes of notice:

c/o Wellington Management Company, LLC
280 Congress Street
Boston, MA 02210

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

By: Wellington Management Company, LLP, as     investment adviser

By:    /s/ Steven M. Hoffman            
Name: Steven M. Hoffman
Title:   Vice President and Counsel

Address for purposes of notice:

c/o Wellington Management Company, LLC
280 Congress Street
Boston, MA 02210

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

BAY POND PARTNERS, L.P. 

By: Wellington Management Company, LLP, as     investment adviser

By:    /s/ Steven M. Hoffman            
Name: Steven M. Hoffman
Title:   Vice President and Counsel

Address for purposes of notice:

c/o Wellington Management Company, LLC
280 Congress Street
Boston, MA 02210

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

BAY POND INVESTORS (BERMUDA) L.P.

By: Wellington Management Company, LLP, as     investment adviser

By:    /s/ Steven M. Hoffman            
Name: Steven M. Hoffman
Title:   Vice President and Counsel

Address for purposes of notice:

c/o Wellington Management Company, LLC
280 Congress Street
Boston, MA 02210

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

THE CHANTAL CLOOBECK SEPARATE PROPERTY TRUST

By:    /s/ Chantal Cloobeck                
Name:  Chantal Cloobeck
Title:     Managing Trustee

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

 EXCHANGING MEMBER:

/s/ Steven Bell                        
Steven Bell

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

/s/ Howard S. Lanznar                    
Howard S. Lanznar

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

/s/ Brian Garavuso                    
Brian Garavuso

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

/s/ C. Alan Bentley                    
C. Alan Bentley

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

EXCHANGING MEMBER:

/s/ Michael Flaskey                    
Michael Flaskey

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

FORMER MEMBER:

1818 PARTNERS, LLC

By:    /s/ David F. Palmer                
Name:  David F. Palmer
Title:   Authorized Person

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

 FORMER MEMBER:

/s/ Stephen J. Cloobeck                
Stephen J. Cloobeck

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

FORMER MEMBER:

/s/ David F. Palmer                    
David F. Palmer

Address for purposes of notice:

10600 West Charleston Boulevard
Las Vegas, NV 89135

[Signature Page to Exchange Agreement]

FORMER MEMBER:

/s/ Lowell D. Kraff                
Lowell D. Kraff

Address for purposes of notice:

1 N. Wacker Drive
48th Floor
Chicago, IL 60606

[Signature Page to Exchange Agreement]

SCHEDULE A

	
		
	Exchanging Member
	 

	Cloobeck Diamond Parent, LLC
	 

	Best Amigos Partners, LLC
	 

	Diamond OurSurance, LLC
	 

	Praesumo Partners, LLC
	 

	Byron Diamond Investments, LLC
	 

	Chautauqua Management, LLC
	 

	Chautauqua IIA, LLC
	 

	Chautauqua IIB, LLC
	 

	Jstone, Inc.
	 

	Eli Field Discretionary Trust for Sandra U/A/D 11/21/78
	 

	Steven Bell
	 

	Howard S. Lanznar
	 

	Brian Garavuso
	 

	Deifik Resorts, LLC
	 

	Trivergance Diamond Sub, LLC
	 

	LDK Holdco, LLC
	 

	DRP Friends Holding, LLC
	 

	DRP Holdco, LLC
	 

	Silver Rock Financial LLC
	 

	IN - FP1 LLC
	 

	BDIF LLC
	 

	CM - NP LLC
	 

	The Hartford Growth Opportunities Fund
	 

	Hartford Growth Opportunities HLS Fund
	 

	Quissett Investors (Bermuda) L.P.
	 

	Quissett Partners, L.P.
	 

	The Hartford Capital Appreciation Fund
	 

	Bay Pond Partners, L.P.
	 

	Bay Bond Investors (Bermuda) L.P.
	 

	C. Alan Bentley
	 

	Michael Flaskey
The Chantal Cloobeck Separate Property Trust 
	 

SCHEDULE B

	
	
	Legend

	A = Number of Class A Units

	B = Number of Class B Units

	P = Pre-IPO Price

	X = Excess Value per Unit

	I = IPO Price

	 

	Sample Calculation for Exchange of Class A Units

	 

	Common Shares = A * (P + X) / I

	 

	A = 10

	P = $493,042.41

	X = $161,139.09

	I = $17.00

	 

	10 * ($493,042.41 + $161,139.09) / $17.00 = 384,813 Common Shares

	 

	Sample Calculation for Exchange of Class B Units

	 

	Common Shares = (B * X) / I

	 

	B = 2

	P = $493,042.41

	X = $161,139.09

	I = $17.00

	 

	(2 * $161,139.09) / $17.00 = 18,958 Common Shares

 
SCHEDULE C

	
	
	Cloobeck Diamond Parent, LLC

	The Chantal Cloobeck Separate Property Trust
Praesumo Partners, LLC
LDK Holdco, LLC

	DRP Friends Holding, LLC

	DRP Holdco, LLC

	Deifik Resorts, LLC

	Best Amigos Partners, LLC

	Diamond OurSurance, LLC

	Chautauqua IIA, LLC

	Chautauqua IIB, LLC

	Chautauqua Management, LLC

	Byron Diamond Investments, LLC
JStone, Inc.
Eli Field Discretionary Trust for Sandra U/A/D 11/21/78
Trivergance Diamond Sub, LLC
Steven Bell

	C. Alan Bentley

	Michael Flaskey

	Brian Garavuso

	Howard S. Lanznar

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