Document:

exv10w14

Exhibit 10.14

GUARANTY

     This GUARANTY dated as of November 23, 2010 is made by the undersigned, Diamond Resorts
Corporation, a Maryland corporation (the “Guarantor”) in favor of Guggenheim Corporate
Funding, LLC, as Administrative Agent for the Lenders that are party to that certain Credit and
Security Agreement dated as of November 23, 2010 (as such agreement may be amended, restated or
otherwise modified from time to time, the “Credit Agreement”) by and among Tempus
Acquisition, LLC, a Delaware limited liability company, (the “Borrower”), the lenders from
time to time party thereto (the “Lenders”) and Guggenheim Corporate Funding, LLC, as
Administrative Agent pursuant to which the Administrative Agent on behalf of the Lenders has made
or may make loans to the Borrower (the “Facilities” and any writing evidencing, supporting
or securing a Facility, including but not limited to the Credit Agreement and this Guaranty, as
such writing may be amended, restated or otherwise modified from time to time, a “Facility
Document”). The Guarantor owns indirectly 100% of the membership interests of the Borrower and
is financially interested in its affairs.

     THEREFORE, in order to induce the Lenders to extend credit or give financial accommodation
under the Facilities, the Guarantor agrees as follows:

     Section 1. Guaranty of Payment. The Guarantor unconditionally and irrevocably
guarantees to the Lenders the punctual payment of all sums now owing or which may in the future be
owing by the Borrower under the Facilities, when the same are due and payable, whether on demand,
at stated maturity, by acceleration or otherwise, and whether for principal, interest, fees,
expenses, indemnification or otherwise; provided that the liability of the Guarantor shall
not exceed Ten Million Dollars ($10,000,000) (all of the foregoing sums being the
“Liabilities”). The Liabilities include, without limitation, interest accruing after the
commencement of a proceeding under bankruptcy, insolvency or similar laws of any jurisdiction at
the rate or rates provided in the Facility Documents. This Guaranty is a guaranty of payment and
not of collection only. The Lenders shall not be required to exhaust any right or remedy or take
any action against the Borrower or any other person or entity or any collateral. The Guarantor
agrees that, as between the Guarantor and the Lenders, the Liabilities may be declared to be due
and payable for the purposes of this Guaranty notwithstanding any stay, injunction or other
prohibition which may prevent, delay or vitiate any declaration as regards the Borrower and that in
the event of a declaration or attempted declaration, the Liabilities shall immediately become due
and payable by the Guarantor for the purposes of this Guaranty.

     Section 2. Guaranty Absolute. The Guarantor guarantees that the Liabilities shall be
paid strictly in accordance with the terms of the Facilities. The liability of the Guarantor under
this Guaranty is absolute and unconditional irrespective of: (a) any change in the time, manner or
place of payment of, or in any other term of, all or any of the Facility Documents or Liabilities,
or any other amendment or waiver of or any consent to departure from any of the terms of any
Facility Document or Liability, including any increase or decrease in the rate of interest thereon;
(b) any release or amendment or waiver of, or consent to departure from, any other guaranty or
support document, or any exchange, release or non-perfection of any collateral, for all or any of
the Facility Documents or Liabilities; (c) any present or future law, regulation or

 

 

order of any jurisdiction (whether of right or in fact) or of any agency thereof purporting to
reduce, amend, restructure or otherwise affect any term of any Facility Document or Liability; (d)
without being limited by the foregoing, any lack of validity or enforceability of any Facility
Document or Liability; and (e) any other setoff, defense or counterclaim whatsoever (in any case,
whether based on contract, tort or any other theory) with respect to the Facility Documents or the
transactions contemplated thereby which might constitute a legal or equitable defense available
to, or discharge of, the Borrower or a guarantor.

     Section 3. Guaranty Irrevocable. This Guaranty is a continuing guaranty of the
payment of all Liabilities now or hereafter existing under the Facilities and shall remain in full
force and effect until payment in full of all Liabilities and other amounts payable under this
Guaranty and until the Facilities are no longer in effect.

     Section 4. Reinstatement. This Guaranty shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the Liabilities is rescinded
or must otherwise be returned by the Lenders on the insolvency, bankruptcy or reorganization of
the Borrower or otherwise, all as though the payment had not been made.

     Section 5. Subrogation. The Guarantor shall not exercise any rights which it may
acquire by way of subrogation, by any payment made under this Guaranty or otherwise, until all the
Liabilities have been paid in full and the Facilities are no longer in effect. If any amount is
paid to the Guarantor on account of subrogation rights under this Guaranty at any time when all
the Liabilities have not been paid in full, the amount shall be held in trust for the benefit of
the Lenders and shall be promptly paid to the Lenders to be credited and applied to the
Liabilities, whether matured or unmatured or absolute or contingent, in accordance with the terms
of the Facilities. If the Guarantor makes payment to the Lenders of all or any part of the
Liabilities and all the Liabilities are paid in full and the Facilities are no longer in effect,
the Lenders shall, at the Guarantor’s request, execute and deliver to the Guarantor appropriate
documents, without recourse and without representation or warranty, necessary to evidence the
transfer by subrogation to the Guarantor of an interest in the Liabilities resulting from the
payment.

     Section 6. Subordination. Without limiting the Lenders’ rights under any other
agreement, any liabilities owed by the Borrower to the Guarantor in connection with any extension
of credit or financial accommodation by the Guarantor to or for the account of the Borrower,
including but not limited to interest accruing at the agreed contract rate after the commencement
of a bankruptcy or similar proceeding, are hereby subordinated to the Liabilities, and such
liabilities of the Borrower to the Guarantor, if the Lenders so request, shall be collected,
enforced and received by the Guarantor as trustee for the Lenders and shall be paid over to the
Lenders on account of the Liabilities but without reducing or affecting in any manner the liability
of the Guarantor under the other provisions of this Guaranty.

     Section 7. Payments Generally. All payments by the Guarantor shall be made in the
manner and at the place required by the Facility Documents.

     Section 8. Certain Taxes. The Guarantor further agrees that all payments to be made
hereunder shall be made without setoff or counterclaim and free and clear of, and without
deduction for, any taxes, levies, imposts, duties, charges, fees, deductions, withholdings or

2

 

restrictions or conditions of any nature whatsoever now or hereafter imposed, levied, collected,
withheld or assessed by any country or by any political subdivision or taxing authority thereof or
therein (“Taxes”). If any Taxes are required to be withheld from any amounts payable to
the Lenders hereunder, the amounts so payable to the Lenders shall be increased to the extent
necessary to yield to the Lenders (after payment of all Taxes) the amounts payable hereunder in
the full amounts so to be paid. Whenever any Tax is paid by the Guarantor, as promptly as possible
thereafter, the Guarantor shall send the Lenders an official receipt showing payment thereof,
together with such additional documentary evidence as may be required from time to time by the
Lenders.

     Section 9. Representations and Warranties. The Guarantor represents and warrants that:
(a) this Guaranty (i) has been authorized by all necessary action; (ii) does not violate any
agreement, instrument, law, regulation or order applicable to the Guarantor; (iii) does not require
the consent or approval of any person or entity, including but not limited to any governmental
authority, or any filing or registration of any kind; and (iv) is the legal, valid and binding
obligation of the Guarantor enforceable against the Guarantor in accordance with its terms, except
to the extent that enforcement may be limited by applicable bankruptcy, insolvency and other
similar laws affecting creditors’ rights generally; and (b) in executing and delivering this
Guaranty, the Guarantor has (i) without reliance on the Lenders or any information received from
the Lenders and based upon such documents and information it deems appropriate, made an independent
investigation of the transactions contemplated hereby and the Borrower, the Borrower’s business,
assets, operations, prospects and condition, financial or otherwise, and any circumstances which
may bear upon such transactions, the Borrower or the obligations and risks undertaken herein with
respect to the Liabilities; (ii) adequate means to obtain from the Borrower on a continuing basis
information concerning the Borrower; (iii) has full and complete access to the Facility Documents
and any other documents executed in connection with the Facility Documents; and (iv) not relied and
will not rely upon any representations or warranties of the Lenders not embodied herein or any acts
heretofore or hereafter taken by the Lenders (including but not limited to any review by the
Lenders of the affairs of the Borrower).

     Section 10. Remedies Generally. The remedies provided in this Guaranty are cumulative
and not exclusive of any remedies provided by law.

     Section 11. Formalities. The Guarantor waives presentment, notice of dishonor,
protest, notice of acceptance of this Guaranty or incurrence of any Liability and any other
formality with respect to any of the Liabilities or this Guaranty.

     Section 12. Amendments and Waivers. No amendment or waiver of any provision of this
Guaranty, nor consent to any departure by the Guarantor therefrom, shall be effective unless it is
in writing and signed by the Lenders, and then the waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. No failure on the part of the
Lenders to exercise, and no delay in exercising, any right under this Guaranty shall operate as a
waiver or preclude any other or further exercise thereof or the exercise of any other right.

     Section 13. Expenses. The Guarantor shall reimburse the Lenders on demand for all
costs, expenses and charges (including without limitation fees and charges of external legal
counsel for the Lenders) incurred by the Lenders in connection with the preparation,

3

 

performance or enforcement of this Guaranty. The obligations of the Guarantor under this Section
shall survive the termination of this Guaranty.

     Section 14. Assignment. This Guaranty shall be binding on, and shall inure to the
benefit of the Guarantor, the Lenders and their respective successors and assigns; provided
that the Guarantor may not assign or transfer its rights or obligations under this Guaranty.
Without limiting the generality of the foregoing: (a) the obligations of the Guarantor under this
Guaranty shall continue in full force and effect and shall be binding on any successor; and (b) the
Lenders may assign, sell participations in or otherwise transfer its rights under the Facilities to
any other person or entity, and the other person or entity shall then become vested with all the
rights granted to the Lenders in this Guaranty or otherwise.

     Section 15. Captions. The headings and captions in this Guaranty are for convenience
only and shall not affect the interpretation or construction of this Guaranty.

     Section 16. Governing Law, Etc. THIS GUARANTY SHALL BE GOVERNED BY THE LAW OF THE
STATE OF NEW YORK. THE GUARANTOR CONSENTS TO THE NONEXCLUSIVE JURISDICTION AND VENUE OF THE STATE
OR FEDERAL COURTS LOCATED IN THE CITY OF NEW YORK. SERVICE OF PROCESS BY THE BANK IN CONNECTION
WITH ANY SUCH DISPUTE SHALL BE BINDING ON THE GUARANTOR IF SENT TO THE GUARANTOR BY REGISTERED
MAIL AT THE ADDRESS SPECIFIED BELOW OR AS OTHERWISE SPECIFIED BY THE GUARANTOR FROM TIME TO TIME.
THE GUARANTOR WAIVES ANY RIGHT THE GUARANTOR MAY HAVE TO JURY TRIAL IN ANY ACTION RELATED TO THIS
GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY AND FURTHER WAIVES ANY RIGHT TO INTERPOSE ANY
COUNTERCLAIM RELATED TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY SUCH ACTION.
TO THE EXTENT THAT THE GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF
ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER FROM SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT, EXECUTION OR OTHERWISE), THE GUARANTOR HEREBY
IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTY.

     Section 17. Integration; Effectiveness. This Guaranty alone sets forth the entire
understanding of the Guarantor and the Lenders relating to the guarantee of the Liabilities and
constitutes the entire contract between the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. This Guaranty shall become effective when it shall have been executed and
delivered by the Guarantor to the Lenders. Delivery of an executed signature page of this Guaranty
by telecopy shall be effective as delivery of a manually executed signature page of this Guaranty.

4

 

     IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed and delivered
by its authorized officer as of the date first above written.

	 	 	 	 	 	 	 

	 	 	DIAMOND RESORTS CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David F. Palmer
 

	 	 
	 

	 	 	 	Name: David F. Palmer	 	 
	 

	 	 	 	Title: President & CFO	 	 
	 
	 	 	 	 	 	 
	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	Diamond Resorts Corporation
	 	 	10600 West Charleston Boulevard
	 	 	Las Vegas, Nevada 89135
	 	 	Attention: Tempus Portfolio, c/o Elizabeth Brennan
	 	 	Telephone:
(702) 823-7550
	 	 	Fax: (702) 765-8615

5exv10w15

Exhibit 10.15

LEASE

BY AND BETWEEN

H/MX HEALTH MANAGEMENT SOLUTIONS, INC.,

a Delaware corporation

AS “LANDLORD”

and

DIAMOND RESORTS CORPORATION,

d/b/a DIAMOND RESORTS INTERNATIONAL,

a Maryland corporation

AS “TENANT”

DATED AS OF JANUARY 16, 2008

WEST CHARLESTON BLVD.

LAS VEGAS, NEVADA

NNN Lease

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	ARTICLE 1

	 	BASIC LEASE PROVISIONS
	 	 	1	 
	 
	ARTICLE 2

	 	GRANT
	 	 	3	 
	 
	ARTICLE 3

	 	TERM
	 	 	3	 
	 
	ARTICLE 4

	 	POSSESSION
	 	 	4	 
	 
	ARTICLE 5

	 	CONSTRUCTION
	 	 	5	 
	 
	ARTICLE 6

	 	RENT
	 	 	5	 
	 
	ARTICLE 7

	 	SECURITY DEPOSIT
	 	 	6	 
	 
	ARTICLE 8

	 	PARKING
	 	 	6	 
	 
	ARTICLE 9

	 	TAXES
	 	 	7	 
	 
	ARTICLE 10

	 	UTILITIES
	 	 	8	 
	 
	ARTICLE 11

	 	INSURANCE
	 	 	8	 
	 
	ARTICLE 12

	 	USE OF PREMISES
	 	 	10	 
	 
	ARTICLE 13

	 	MAINTENANCE AND REPAIR OF PREMISES
	 	 	12	 
	 
	ARTICLE 14

	 	ALTERATIONS AND ADDITIONS
	 	 	13	 
	 
	ARTICLE 15

	 	TENANT’S PROPERTY
	 	 	14	 
	 
	ARTICLE 16

	 	DAMAGE AND DESTRUCTION
	 	 	15	 
	 
	ARTICLE 17

	 	EMINENT DOMAIN
	 	 	15	 
	 
	ARTICLE 18

	 	INDEMNIFICATION AND GUARANTY
	 	 	15	 
	 
	ARTICLE 19

	 	DEFAULTS AND REMEDIES
	 	 	16	 
	 
	ARTICLE 20

	 	SUBORDINATION AND ATTORNMENT
	 	 	18	 
	 
	ARTICLE 21

	 	FORCE MAJEURE
	 	 	19	 
	 
	ARTICLE 22

	 	ASSIGNMENT AND SUBLETTING
	 	 	19	 
	 
	ARTICLE 23

	 	NOTICES
	 	 	20	 
	 
	ARTICLE 24

	 	QUIET ENJOYMENT
	 	 	20	 
	 
	ARTICLE 25

	 	ATTORNEYS’ FEES
	 	 	20	 
	 
	ARTICLE 26

	 	WAIVER
	 	 	20	 
	 
	ARTICLE 27

	 	LIMITATION ON CLAIMS
	 	 	21	 

i

 

	 	 	 	 	 	 	 

	ARTICLE 28

	 	BANKRUPTCY
	 	 	21	 
	 
	ARTICLE 29

	 	EXCEPTION DOCUMENTS
	 	 	21	 
	 
	ARTICLE 30

	 	INTERPRETATION AND APPLICATION
	 	 	21	 
	 
	ARTICLE 31

	 	MISCELLANEOUS
	 	 	22	 
	 
	ARTICLE 32

	 	SIGNAGE
	 	 	23	 
	 
	EXHIBIT A-1

	 	LEGAL DESCRIPTION (Parcel 1)
	 	 	A-1-1	 
	 
	EXHIBIT A-2

	 	LEGAL DESCRIPTION (Parcel 2)
	 	 	A-2-1	 
	 
	EXHIBIT B

	 	SITE PLAN OF PREMISES
	 	 	B-1	 
	 
	EXHIBIT C

	 	MEMORANDUM OF LEASE COMMENCEMENT
	 	 	C-1	 
	 
	EXHIBIT D

	 	[Intentionally Omitted]
	 	 	D-1	 
	 
	EXHIBIT E

	 	RENEWAL OPTIONS
	 	 	E-1	 
	 
	EXHIBIT F

	 	EXCEPTION DOCUMENTS
	 	 	F-1	 

ii

 

OFFICE BUILDING

LEASE AGREEMENT

     This Office Building Lease Agreement (“Lease”) is made between the Landlord and
Tenant hereinafter identified in Sections 1.2 and 1.3 hereof, respectively, and
constitutes a lease between the parties of the “Premises” as identified in Section 1.5
hereof on the terms and conditions and with and subject to the covenants and agreements
of the parties hereinafter set forth by basic lease provisions.

ARTICLE 1

BASIC LEASE PROVISIONS

     The following are certain Lease provisions, which are a part of, and, in certain
instances, referred to, in subsequent provisions of this Lease:

	 	 	 

	SECTION 1.1 
DATE OF LEASE:

	 	January 16, 2008
	 
	 	 
	SECTION 1.2 
LANDLORD:

	 	H/MX Health Management Solutions, Inc., a Delaware corporation
	 
	 	 
	SECTION 1.3 
TENANT:

	 	Diamond Resorts Corporation, d/b/a Diamond Resorts International, a Maryland

corporation
	 
	 	 
	SECTION 1.4 
SECURITY DEPOSIT:

	 	 $189,899.00
	 
	 	 
	SECTION 1.5 
PREMISES:

	 	(i) the entire building located at 10600 West Charleston Blvd., Las Vegas,
Nevada (“Building 1”) and the real property on which it is constructed, the
legal description of
which is attached hereto as Exhibit A-1 (“Parcel 1”) and (ii) the entire
building
located at 10615 Park Run Dr., Las Vegas, Nevada (“Building 2”) and the real
property on which it is constructed, the legal description of which is
attached hereto as Exhibit A-2 (“Parcel 2”). Collectively, Building 1,
Building 2, Parcel 1 and Parcel 2, including any basement level space, the
Parking Area (as defined in Article 8), any portions designed to be used for
storage and all other improvements thereon, are referred to as the
“Premises”. The Premises also include all appurtenances, easements and rights
of way related to it. A site plan of the Premises is attached hereto as
Exhibit B (the “Site Plan”). Building 1 and Building 2 are hereinafter
together referred to as the “Building”. (See Exhibits A-1 , A-2 and B and
Article 2)
	 
	 	 
	SECTION 1.6 
TERM:

	 	The term of this Lease shall commence on the Commencement Date and shall end
on September 30, 2018 (“Expiration Date”) unless extended pursuant to Exhibit
E-Renewal Options. (See Section 3.1)
	 
	 	 
	SECTION 1.7 
COMMENCEMENT DATE:

	 	The Commencement Date shall be the later to occur of (i) January 31, 2008
(the “Target Commencement Date”) and (ii) the date Landlord delivers the
Premises to
Tenant in Substantially Complete Condition, as set forth in Section 3.6 below.
	 
	 	 
	SECTION 1.8 
BASE RENT:

	 	The Base Rent shall be: $189,899.00 per month, as adjusted pursuant to
Section 6.4. (See Sections 6.2 and 6.4)
	 
	 	 
	 

	 	Concurrent with the mutual execution
of this Lease, Tenant shall provide Landlord with an amount equal to one (1)
installment of monthly Base Rent (the “Advance
Rent”), which shall be applied to the Base Rent owed upon the Rent
Commencement Date, subject to Section 6.5.
	 
	 	 
	SECTION 1.9 
PERMITTED USE:

	 	General office purposes, including without limitation, timeshare business
services, telemarketing and customer service call centers, and related uses
(“Tenant’s Use”), and amenities, including without limitation, a cafeteria, a
fitness center, and day care facility all for employee only use
(collectively, the “Amenities”). (See Section 12.1)

 

 

	 	 	 

	SECTION 1.10

GUARANTOR (S):

	 	None.
	 
	 	 
	SECTION 1.11 
TENANT IMPROVEMENT
ALLOWANCE:

	 	$ 500,000.00
	 
	 	 
	SECTION 1.12 
BROKER(S):

	 	Landlord’s:

	 

	 	None

	 

	 	Tenant’s:

	 

	 	None 

(See Section 31.5)
	 
	 	 
	SECTION 1.13 
ADDRESSES FOR NOTICES
AND REPORTS:

	 	Landlord:

	 

	 	H/MX Health Management Solutions, Inc.
	 

	 	1600 West Broadway Road, Suite 300
	 

	 	Tempe, Arizona 85282
	 

	 	Attn: James Dyer
	 
	 	 
	 

	 	Tenant:
	 
	 	 
	 

	 	Diamond Resorts Corporation,
	 

	 	d/b/a Diamond Resorts International
	 

	 	10600 W. Charleston Blvd.
	 

	 	Las Vegas, Nevada 89135
	 

	 	Attn: Stephen Cloobeck
	 
	 	 
	 

	 	With a copy to:
	 
	 	 
	 

	 	Diamond Resorts Corporation,
	 

	 	d/b/a Diamond Resorts International
	 

	 	10600 W. Charleston Blvd.
	 

	 	Las Vegas, Nevada 89135
	 

	 	Attn: Chief Financial Officer
	 
	 	 
	 

	 	And
	 
	 	 
	 

	 	Diamond Resorts Corporation,
	 

	 	d/b/a Diamond Resorts International
	 

	 	10600 W. Charleston Blvd.
	 

	 	Las Vegas, Nevada 89135
	 

	 	Attn: Howard Lanznar
	 
	 	 
	SECTION 1.14 
LANDLORD’S ADDRESS FOR
RENT PAYMENTS:

	 	H/MX Health Management Solutions, Inc.

1600 West Broadway Road, Suite 300

Tempe, Arizona 85282
	 
	 	 
	SECTION 1.15 
RENT COMMENCEMENT DATE:

	 	October 1, 2008

2

 

	 	 	 

	SECTION 1.16 

LEASE YEAR:

	 	Subject to the balance of this paragraph, each period of twelve (12) consecutive months within the
Term. The First Lease Year shall commence on the Rent Commencement Date. If the Rent Commencement
Date is the first day of a calendar month, the First Lease Year shall end on the day immediately
preceding the day which is the first anniversary of the Rent Commencement Date. If the Rent
Commencement Date is not the first day of a calendar month, the First Lease year shall end on the
last day of the calendar month in which the first anniversary of the Rent Commencement Date occurs.
The Second Lease Year shall commence on the day immediately following the last day of the First
Lease Year, and each of the subsequent Lease Years shall commence on the anniversary of the first
day of the Second Lease Year. The final Lease Year of the Term shall end on the Expiration Date.

ARTICLE 2

GRANT

     Landlord leases to Tenant and Tenant leases from Landlord the Premises described
in Section 1.5 and depicted on the Site Plan for the Term (as defined in Section 1.6)
and pursuant to all of the terms, covenants and conditions contained herein.

ARTICLE 3

TERM

     3.1 Term. The Term of the Lease (“Term”) shall commence on the Commencement
Date and shall be for the period of specified in Section 1.6. Except for the payment
of Rent, entry into and occupation of the Premises by Tenant prior to the Rent
Commencement Date is under all of the terms, covenants and conditions of the Lease.

     3.2 Tenant’s Possession. Tenant acknowledges that on the Commencement
Date Landlord will be conducting its business at, and will be occupying all or a portion
of, the Premises, and that Landlord is in the process of relocating its business
entirely to another building. As of the Target Commencement Date, however, Landlord
shall have completed its consolidation of its business operations to the first
(1st) floor of Building 2 (the “Landlord Occupied Portion”).
Landlord covenants and agrees that it shall relinquish possession to Tenant of all
portions of the Premises (other than the Landlord Occupied Portion) on the Commencement
Date, and shall proceed diligently to vacate and relinquish to Tenant as soon as
practicable the Landlord Occupied Portion but in no event later than April 15, 2008 (the
“Vacation Date”). Landlord shall cooperate with Tenant in providing reasonable access
to any and all areas of the Premises occupied by Landlord so that Tenant may proceed
with its Tenant Improvements. Following the Commencement Date, upon either party’s
request, Landlord and Tenant shall promptly execute and deliver a “Memorandum of
Lease Commencement” in the form attached hereto as Exhibit C, which shall specify
the Commencement Date and the Rent Commencement.

     3.3 Landlord Representations and Warranties. Landlord represents and
warrants, as of the Commencement Date: (a) the Premises are in compliance with all
Applicable Laws; (b) the Premises, including, but not limited to, the structural
portions, the roof, floor slab, and plumbing, electrical, HVAC and mechanical systems,
are in good and proper working condition and free from any material defects, latent or
patent, and are suitable and adequate for Tenant’s Use (assuming Tenant’s Use is
substantially similar to Landlord’s prior use of the Premises) (collectively,
“Defects”); and (c) there does not exist any uncorrected violation of building, safety,
or fire ordinances or regulations respecting the Premises. Landlord covenants and agrees
that it will without demand, and at its cost, comply with all Applicable Laws which
apply to the Premises prior to the Commencement Date.

     3.4 Permits for Amenities. Notwithstanding anything contained in this
Article 3 or Article 4 to the contrary, Tenant, at Tenant’s sole cost and expense, shall
be responsible for obtaining any applicable business permits and licenses necessary to
operate the Amenities upon the Premises. Landlord shall not be responsible for the
obtaining of such business permits or licensees, if any. Landlord, however, shall
cooperate with Tenant, at no cost to Landlord, in Tenant’s efforts to obtain such
permits or licensees, if any, including but not limited to executing all documents in
furtherance thereof.

     3.5 Holding Over. This Lease shall terminate without further notice upon
the Expiration Date (subject to any Renewal Options set forth in Exhibit E) and any
holding over by Tenant after the Expiration Date shall not constitute a renewal or
extension of this Lease, or give Tenant any rights under this Lease, except when signed
in

3

 

writing, by both parties. If Tenant holds over for any period after the Expiration Date
(or earlier termination) of the Term, Tenant shall be a month-to-month tenant
commencing on the first (1st) day following the termination of this Lease and subject
to all of the terms of this Lease, except that the monthly Base Rent shall be one
hundred twenty-five percent (125%) of the last monthly rental installment.

     If Tenant fails to surrender the Premises upon the expiration of this Lease,
Tenant shall indemnify and hold Landlord harmless from all loss or liability,
including, without limitation, any claims made by any succeeding tenant relating to
such failure to surrender provided that Tenant has received sixty (60) days advance
written notice of any succeeding tenant. Acceptance by Landlord of rent after the
termination shall not constitute Landlord’s consent to a holdover or result in a
renewal or extension of this Lease. The foregoing provisions of this Section are in
addition to, and do not affect, Landlord’s right to re-entry or any other rights of
Landlord under this Lease or at law.

     3.6 Definition. For purposes of this Lease, the term “Substantially
Complete Condition” shall mean: (i) the Building is complete and in compliance with all
Applicable Laws (as defined in Section 14.5) (ii) the Building systems are operational
to the extent necessary to fully service the Premises; (iii) the portion of the
Premises to be delivered is free of all tenants and occupants; (iv) Landlord has
provided unrestricted access to the Premises for the conduct of Tenant’s business
operations/construction of Tenant Improvements (as defined in Article 5); and (v)
Landlord is not in breach of any of its representations and warranties in this Lease.

ARTICLE 4

POSSESSION

     Landlord represents and warrants that Landlord shall deliver full possession of
the Premises (except for the Landlord Occupied Portion) in Substantially Complete
Condition no later than the Target Commencement Date. If for any reason Landlord does
not deliver full possession of the Premises (except for the Landlord Occupied Portion)
in Substantially Complete Condition on or before the Target Commencement Date, the
parties agree that Tenant shall have been deprived of an important right under this
Lease and, as a result thereof, will suffer damages in an amount which is not readily
ascertainable and thus, in such event, Tenant shall have the right to collect, as
liquidated damages and not as a penalty, an amount equal to $1,500 per day for each day
of such delay in the period commencing on the Target Commencement Date and ending on
the earlier to occur of (i) the date upon which Landlord delivers the Premises (except
for the Landlord Occupied Portion) in Substantially Complete Condition, and (ii) the
Termination Date. In addition, if for any reason Landlord does not deliver full
possession of the Landlord Occupied Portion in Substantially Complete Condition to
Tenant on or before the Vacation Date, then, commencing on the Vacation Date, (x)
Tenant shall receive a one (1) day abatement of Base Rent and Additional Rent for each
day of such delay in the period commencing on the Vacation Date and ending on the date
upon which Landlord delivers possession of the Landlord Occupied Portion to Tenant in
Substantially Complete Condition (the “Initial Delivery Delay Abatement
Period”) (any such Initial Delivery Delay Abatement Period shall be in addition to the
Rent Credit pursuant to Section 6.5), and (y) Tenant may terminate Landlord’s right of
possession and repossess any portion of the Premises occupied by Landlord by detainer
suit, summary proceedings or other lawful means. If Landlord fails to tender possession
of the entire Premises (including the Landlord Occupied Portion) in Substantially
Complete Condition by the thirtieth day following the Vacation Date (the “Termination
Date”), then Tenant shall have the right, upon prior written notice to Landlord, to
terminate this Lease, unless, prior to the Termination Date specified in Tenant’s
Termination Notice, Landlord tenders possession of the entire Premises (including the
Landlord Occupied Portion) in Substantially Complete Condition to Tenant. Tenant shall
at all times have the rights and remedies (which shall be cumulative with each other
and in addition to those rights and remedies available to Tenant under this Article 4),
of any Applicable Laws and other provisions of this Lease, without prior demand or
notice except as required by the Applicable Laws or this Lease, including without
limitation the right to seek any declaratory, injunctive or other equitable relief, and
specifically enforce this Lease, or restrain or enjoin a violation or breach of any
provision hereof. Landlord agrees to reimburse Tenant promptly on demand the amount of
any and all costs, claims and expenses, including reasonable attorneys’ fees and costs
incurred by Tenant in connection with enforcing its rights under this Article 4 or this
Lease. On the Commencement Date, Tenant shall be deemed to have accepted the Premises
(other than the Landlord Occupied Portion) subject to all Applicable Laws governing and
regulating the use of the Premises, and accepts this Lease subject thereto as to all
matters disclosed thereby and by any Exhibits attached to the Lease. Landlord
represents and warrants the Tenant’s Use is permitted by and in compliance with all
Applicable Laws governing and regulating the use and zoning of the Premises, the
applicable Planned Community Program and the Exception Documents (assuming Tenant’s Use
is substantially similar to Landlord’s prior use of the Premises). Except for the
Landlord Occupied Portion, Tenant shall have unlimited access to the Premises 24 hours
a day/7 days a week.

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ARTICLE 5

CONSTRUCTION

     5.1 Tenant’s Construction. Except for the $500,000.00 Tenant Improvement
Allowance described in Section 1.11 and this Article 5, all of the Tenant Improvements shall
be at Tenant’s sole cost and expense pursuant to plans and specifications which meet
Landlord’s prior written approval, which shall not be unreasonably withheld, delayed or
conditioned. Tenant shall provide its own trash container(s) as needed for containment and
removal of construction debris from the Tenant Improvements. Tenant’s contractor shall name
Landlord as an additional insured on contractor’s insurance policies. The Tenant
Improvements shall be undertaken and
completed in a good, workmanlike manner, and Tenant shall obtain all necessary
governmental permits, licenses and approvals with respect thereto and shall fully comply with
all covenants, conditions and restrictions of record, governmental statutes, ordinances,
rules and regulations pertaining thereto, and in compliance with Article 14 of the Lease.

     5.2 Tenant Improvements and Tenant Improvement Allowance. Tenant’s contractor
(hired by, and at, Tenant’s sole cost and expense) shall construct the initial tenant
improvements in the Premises for Tenant’s use during the Term (the “Tenant Improvements”).
Landlord’s contribution (or reimbursement) toward the total cost of the Tenant Improvements
is set forth below (the “Tenant Improvement Allowance”). Tenant shall be
responsible for all design, permitting and construction costs which exceed the Tenant
Improvement Allowance.

     5.3 Tenant Improvement Allowance.

     The Tenant Improvement Allowance may only be applied against the costs incurred
(“Work Costs”): (i) by Tenant for labor engaged in the construction of the Tenant
Improvements, (ii) by Tenant for materials delivered to the Premises in connection with
the Tenant Improvements, and (iii) such other costs otherwise reasonably related to the
Tenant Improvements.

     In the event the Work Costs are less than the Tenant Improvement Allowance, the
remainder shall be held in reserve by Landlord for Tenant’s use within twelve (12) months
from the Rent Commencement Date. Any remaining Tenant Improvement Allowance not used
within the twelve (12) month period referenced above shall revert to Landlord and Tenant
shall have no right to receive the remaining unused portion of such Tenant Improvement
Allowance or a Rent credit.

     5.4 Partial Release of the Tenant Improvement Allowance. Tenant may request,
but not more frequently than two (2) times each calendar month, a partial release of the
Tenant Improvement Allowance (“Drawdown”), if and only if, all of the following conditions
shall have been satisfied.

     (i) No event of default shall have occurred and be then continuing under this
Lease beyond all applicable notice and cure periods;

     (ii) Tenant’s request for release is submitted to Landlord in writing setting
forth the amount requested with copies of invoices for Work Costs supporting Tenant’s request;
and

     (iii) Delivery of conditional lien releases from Tenant’s general
contractor and all of subcontractors and materialmen for the amount for which
payment is sought.

     5.5 Final Release of the Tenant Improvement Allowance. The last Drawdown shall
be released to
Tenant, if an only if, copies of unconditional lien waivers and releases from Tenant’s
general contractor and all of Tenant’s subcontractors and materialsmen performing the Tenant
Improvements.

     5.6 As-Built Drawings. As soon as possible following Tenant’s substantial
completion of the Tenant Improvements, Tenant shall deliver a complete “as-built” set of
construction drawings to Landlord.

ARTICLE 6

RENT

     6.1 General Provisions. As used herein, “rent” or “Rent” shall mean Base
Rent and Additional Rent, all as hereinafter defined. Unless provided herein to the
contrary, Tenant shall pay all Base Rent to Landlord in advance on or before the first
day of each month of the Term at the address provided in Section 1.13 hereof, commencing
upon the Rent Commencement Date, subject to the provisions of Section 6.5, and continuing
until the Expiration Date. All Base Rent and Additional Rent shall be paid, to Landlord,
in lawful money of the United States of

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America without demand therefor, and without deduction, offset or abatement (subject to any other
provisions of this Lease to the contrary) of any kind. Rent for any partial month, shall be
prorated based on the number of days during the month this Lease was in effect in relation to the
total number of days in such month. Upon the execution of this Lease, Tenant shall pay to Landlord
the Advance Rent.

     6.2 Base Rent. Commencing on the Rent Commencement Date (subject to the provisions of
Sections 6.1 and 6.5), Tenant shall pay Landlord as fixed rent (“Base Rent”) during the Term, the
sum set forth in Section 1.8 hereof (as adjusted pursuant to Section 6.4), which sum shall be
payable by Tenant monthly on or before the first day of each month, in advance.

     6.3 Additional Rent. All other charges or payments of whatever nature required to be
paid by Tenant to Landlord under this Lease, except Base Rent, including the Exhibits attached
hereto, shall be referred to as “Additional Rent”. Base Rent shall be paid in the manner specified
in Section 6.2; all other charges or whatever kind required to be paid by Tenant under this Lease,
including the Exhibits attached hereto, shall, unless otherwise specified, be due and payable
thirty (30) days after written demand, without any deductions or set-off whatsoever, in the manner
and at the place where Base Rent is payable. Any credit due to Tenant hereunder by reason of
overpayment of Additional Rent shall first be applied to any damages of Base Rent or Additional
Rent owed to Landlord by Tenant if Tenant shall be in material default when said credit shall be
owed.

     6.4 Adjustments to Base Rent. Base Rent shall be increased annually during the Term
beginning on the first day of the second Lease Year and thereafter on the first day of each
subsequent Lease Year by an amount equal to three and one-half percent (3.5%) of the Base Rent for
the month immediately preceding such adjustment. Such increased amount shall become the Base Rent.

     6.5 Rent Credit. Landlord hereby grants to Tenant a credit for the payment of Base
Rent only (the “Rent Credit”) becoming due for the months beginning with the month of the
Commencement Date through the month of September 2008 (the “Rent Credit Period”). Accordingly,
the Advance Rent shall be applied to Base Rent becoming due for the month of October 2008. The
Rent Credit is an inducement to and consideration for Tenant to enter into this Lease and shall be
deemed fully earned on the Commencement Date. Tenant shall pay to Landlord all Additional Rent for
the Rent Credit Period in accordance with Section 6.3.

ARTICLE 7

SECURITY DEPOSIT

     7.1 Security Deposit. Tenant shall deposit with Landlord upon Tenant’s execution
hereof the Security Deposit set forth in Section 1.4 as security for Tenant’s full and faithful
performance of Tenant’s obligations under this Lease. If Tenant fails to pay Base Rent, Additional
Rent, or other rent or charges due hereunder after the expiration of all applicable notice and
cure periods, or otherwise Defaults under this Lease, Landlord may use, apply or retain all or any
portion of said Security Deposit for the payment of any amount due Landlord or to reimburse or
compensate Landlord for any liability, cost, expense, loss or damage (including attorneys’ fees)
which Landlord may suffer or incur by reason thereof. If Landlord uses or applies all or any
portion of said Security Deposit, Tenant shall, within five (5) business days after written
request therefor, deposit monies with Landlord sufficient to restore said Security Deposit to the
full amount required by this Lease. Landlord shall not be required to keep all or any part of the
Security Deposit separate from its general accounts. Landlord shall either apply the Security
Deposit to the last month of Rent owed during the Term, or, within thirty (30) days after the
expiration or earlier termination of this Lease and after Tenant has vacated the Premises, return
to Tenant (or, at Tenant’s election, to the last assignee, if any, of Tenant’s interest herein),
that portion of the Security Deposit not used or applied by Landlord. Unless otherwise expressly
agreed in writing by Landlord, no part of the Security Deposit shall be considered to be held in
trust, to bear interest or other increment for its use, or to be prepayment for any monies to be
paid by Tenant under this Lease.

ARTICLE 8

PARKING

     8.1 Parking Area. Throughout the Term and subject to compliance with all applicable
laws, rules, regulations, ordinances and Declaration, including without limitation the Exception
Documents, Tenant and its agents, employees, invitees and customers shall be entitled (i) to the
exclusive use of all parking spaces, which currently includes 59 covered parking spaces (the
“Original Covered Parking Spaces”) and areas located on Parcel 1 and Parcel 2 (together,
the parking spaces, including the Original Covered Parking Spaces, and parking areas located on
Parcel 1 and Parcel 2 are hereinafter referred to as the “Parking Area”), (ii) to the use of such
Parking Area for the overnight and valet parking of customer vehicles or company-owned vehicles,
and (iii) to install awnings or other protective cover for vehicles and to reconfigure parking
spaces and traffic patterns at the Premises as Tenant may

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deem appropriate to operate its business. Tenant agrees to pay Landlord, as Additional
Rent on the first day of each month of the Term, an amount equal to Two Thousand Six
Hundred Fifty-five Dollars ($2,655.00) per month for the Original Covered Parking
Spaces; provided, however, should Tenant increase the number of covered parking spaces,
Tenant shall not be required to pay any additional amount for such additional covered
parking spaces.

     The Parking Area shall include without limitation the automobile parking stalls,
driveways, entrances, exits, sidewalks and attendant pedestrian passageways and other
areas designated for parking. Nothing contained in this Lease shall be deemed to
create liability upon Landlord for any damage to motor vehicles of visitors or
employees, unless ultimately determined to be caused by the gross negligence or
willful misconduct of Landlord. Landlord shall pay Tenant, within thirty (30) days
after Landlord’s receipt from Tenant of evidence substantiating said cost, the amount
to reimburse Tenant for all actual, out-of-pocket costs incurred by Tenant to provide
first class valet parking services in the Parking Area as deemed necessary by Tenant
for Tenant’s use and occupancy of the Premises. The costs for the valet parking
services in the Parking Area shall be commercially reasonable and at a cost comparable
to those charged in arm’s-length transactions for similar services rendered for
similar purposes to comparable buildings in the Las Vegas area. Tenant shall solicit
competitive bids from at least three (3) valet parking service providers (the “Valet
Providers”). Landlord and Tenant shall review the bids jointly and Tenant shall be
entitled to select amongst the three (3) Valet Providers provided that the cost of the
selected Valet Provider’s services does not exceed the next lowest bid by more than
ten percent (10%). If the selected Valet Provider’s bid exceeds the next lowest bid by
more than ten percent (10%) then Tenant may nonetheless select such Valet Provider if
Tenant finds the next lower bid to be unreasonable or unresponsive (taking into
consideration such factors as its completeness of scope, scheduling approach,
staffing, assessment of costs and other items). Notwithstanding the foregoing,
Landlord may elect to provide such valet parking services at the Parking Area provided
that Landlord can demonstrate to Tenant, in Tenant’s reasonable discretion, that
Landlord can provide the same quality and completeness of service (taking into
consideration such factors as its completeness of scope, scheduling approach,
staffing, licensing, insurance and other items) as those services provided by
experienced service providers in the industry rendered for similar purposes to
comparable buildings in the Las Vegas area.

     8.2 Permits for Valet Parking. Notwithstanding anything contained
hereinabove to the contrary, Tenant shall, at Tenant’s sole cost and expense, be
responsible for obtaining any applicable business permits and licenses necessary to
utilize a valet parking service in the Parking Area. Landlord shall not be responsible
for the obtaining of such business permits or licensees if any. Landlord, however,
shall cooperate with Tenant in Tenant’s efforts to obtain such permits or licensees,
if any, including but not limited to executing all documents in furtherance thereof,
at no cost or expense to Landlord.

ARTICLE 9

TAXES

     9.1 Real Property Taxes. Landlord shall pay directly to the taxing
authority (at such times and in such manner as the taxing authority shall require) all
Real Property Taxes. Landlord shall provide Tenant with a copy of Landlord’s tax bill
or invoice and Tenant shall thereafter reimburse Landlord, as Additional Rent, for the
cost of all of such tax bill or invoice for the Premises applicable to any Real Property
Taxes accruing during the Term for the Premises, regardless of when such Real Property
Taxes are billed or become due and payable. Landlord, at Landlord’s sole cost and
expense (and not as a pass through to Tenant) shall pay all interest and penalties that
are by virtue of Landlord’s failure to timely pay the invoice to the taxing authority.

     9.2 Definition. “Real Property Taxes” shall mean all taxes, assessments (special
or otherwise) and charges levied upon or with respect to the Premises. Real Property
Taxes shall include, without limitation, any tax, fee or excise on the act of entering
into this Lease, on the occupancy of Tenant, hereunder which are now or hereafter levied
or assessed against the Premises and/or Landlord by the United States of America, the
State of Nevada or any political subdivision, public corporation, district or other
political or public entity, and shall also include any other tax, assessment, fee or
excise, however described (whether general or special, ordinary or extraordinary,
foreseen or unforeseen), which may be levied or assessed in lieu of, as a substitute
for, or as an addition to, any other Real Property Taxes. Tenant may pay
any such special assessments in installments when allowed by law, in which case
Real Property Taxes shall include any interest charged thereon. Real Property Taxes
shall also include reasonable legal fees, costs and disbursements incurred in connection
with proceedings to contest, determine or reduce Real Property Taxes. If Landlord does
not elect to contest the Real Property Taxes, Tenant shall have the right, but not the
obligation, to challenge or dispute, in accordance with applicable legal requirements,
the Real Property Taxes which are payable by Tenant hereunder. Tenant shall give
Landlord written notice of Tenant’s intention to challenge such taxes. Landlord agrees
to cooperate reasonably with Tenant in such event, including, without limitation, by
executing notices, applications or other documents which may be required under
applicable law, at no out of pocket costs to Landlord. Real Property Taxes shall not
include income, franchise, gift, sales, gross

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receipts, succession, transfer, profit, estate or inheritance or capital stock taxes, unless, due
to a change in the method of taxation, any of such taxes are levied or assessed against Landlord in
lieu of, or as a substitute for, or as an addition to, any other tax which would otherwise
constitute a Real Property Tax.

ARTICLE 10

UTILITIES

     10.1 General. Tenant shall contract for and pay directly to the applicable utility
service provider for all utilities and services relating to the Premises including but not limited
to all installation, hookups, meter fees and connections. Landlord shall not be responsible for,
or in default hereunder or be liable for any damages (including any consequential damages) directly
or indirectly resulting from, nor shall the Rent be abated by reason of (i) the installation, use
or interruption of use of any equipment in connection with the foregoing services, (ii) failure
caused by accident or any condition or event beyond the reasonable control of Landlord, or by the
making of necessary repairs or improvements to the Premises, or (iii) the limitation, curtailment
or rationing of, or restrictions on, use of water, electricity, gas or any other form of energy
serving the Premises. Landlord shall not be liable under any circumstances for a loss of or
injury to property or business, however occurring, through or in connection with or incidental to
any such services.

     10.2 Untenantability.

     Notwithstanding anything contained to the contrary in this Lease, if at any time after the
Rent Commencement Date the Premises or any portion thereof become Untenantable and such
Untenantability continues more than five (5) business days after Tenant shall have given written
notice thereof to Landlord, then Rent shall thereafter abate with respect to the Premises or the
portion thereof that is rendered Untenantable, commencing on the first business day after such
five (5) business day period, and shall continue for the duration of such Untenantability.

     If any period of Untenantability involving more than fifty percent (50%) of the rentable area
of the Premises (deemed hereunder to be equal to or greater than 40,404 square feet) or the loss
of more than five percent (5%) of the Parking Area continues for more than 270 consecutive days,
then Tenant shall have the right (during the period the
Untenantability persists beyond the foregoing 270-day period), but exercisable only by
written notice to Landlord within the fifteen (15) day period following said 270 consecutive day
period, to terminate this Lease, which termination shall be effective upon receipt of such written
notice.

     For purposes of this Lease, “Untenantable” and “Untenantability” means with respect to the
Premises, or any portion thereof, that the same cannot reasonably be used by Tenant for the normal
conduct of its business and in accordance with applicable laws, and in fact is not being so used
for any purpose, including by reason of (a) the condition of the Premises, or applicable portion
thereof, or (b) lack of access, parking, electricity, HVAC, or water, and not caused by the acts,
omissions, negligence or willful misconduct of Tenant.

     The provisions of this Section 10.2 shall not be applicable to any Untenantability by reason
of damage by fire or other casualty or condemnation and the same shall be governed by the
provisions of Articles 16 and 17 hereof, respectively.

ARTICLE 11

INSURANCE

     11.1 General. Each party shall maintain in effect from and after the Commencement
Date and continuously thereafter until the Expiration Date, the policies of insurance required
under this Article. All policies that each party is required to obtain under this Article shall be
issued by responsible insurance companies authorized to do business in Nevada with an AM Best
rating of not less than “A-, VII” and shall be in a form and underwritten by companies acceptable
to the other party. On or before the Commencement Date, each party shall furnish evidence
acceptable to the other party that (i) the policies (or a binder thereof) required pursuant to
this Article are in effect and (ii) the other party shall be notified by the carrier in writing
thirty (30) days prior to cancellation, material change, or non-renewal of such insurance. The
policies required to be obtained pursuant to Article 11.2 shall name the other party and, with
respect to Tenant’s commercial general liability insurance policy and umbrella liability insurance
policy, Landlord and Landlord’s Lender, if any, as additional insureds on such equivalent form as
may be approved by the other party and shall be primary policies, and shall be non-contributory
with any other valid and collectible insurance. If either party carries any of the insurance
required hereunder in the form of a blanket policy, any certificate required hereunder shall make
specific reference to the Premises. The policy evidencing insurance required to be carried
pursuant to this Article shall provide coverage on an occurrence basis. The limits of the

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insurance coverage required hereunder or the unavailability of certain types of
coverage shall not limit or release either party from any of its obligations under
this Lease and the existence of such insurance in no way changes either party’s
obligations to the other.

     11.2 Tenant’s Insurance.

     Tenant, at its sole cost and expense, during the entire Term hereof, shall,
commencing with the Commencement Date, procure, pay for and keep in full force and
effect: (i) a commercial general liability insurance policy (ISO form or equivalent),
including insurance against assumed or contractual
liability under this Lease with respect to the Premises and the operations of
Tenant and any subtenants of Tenant in, on or about the Premises in which the limits
with respect to personal liability and property damage shall not be less than Three
Million Dollars ($3,000,000) per occurrence on a location basis; (ii) umbrella
liability insurance policy in an amount not less than Ten Million Dollars
($10,000,000.00) per occurrence and in the aggregate on terms consistent with the
commercial general liability insurance policy required herein, (iii) all risk property
insurance including theft and, if applicable, boiler and machinery coverage, written
at replacement cost value in an adequate amount to avoid coinsurance and a full
replacement cost endorsement insuring the Tenant’s trade fixtures, equipment,
merchandise and furnishings and any other items of personal property of Tenant and
including the property of Tenant’s customers located on or in the Premises; (iv)
workers’ compensation coverage as required by law; (v) with respect to alterations,
additions or improvements and the like required or permitted to be made by Tenant
hereunder, contingent liability and builder’s risk insurance, in amounts reasonably
satisfactory to Landlord; and (vi) such other insurance as from time to time may be
required by city, county, state or Federal laws, codes, regulations or authorities or
which Landlord’s Lender determines is reasonably necessary or appropriate under the
circumstances. Said policy or policies shall also contain an agreed valuation
provision in lieu of any co-insurance clause, waiver of subrogation, and inflation
guard protection causing an increase in the annual property insurance coverage amount
by a factor of not less than the adjusted U.S. Department of Labor Consumer Price
Index for All Urban Consumers for the city nearest to where the Premises are located.
The policy or policies shall not contain any intra-insured exclusions as between
insured persons or organizations, but shall include coverage for liability assumed
under this Lease as an “insured contract” for the performance of Tenant’s indemnity
obligations under this Lease. The limits of said insurance required by this Lease or
as carried by Tenant shall not, however, limit the liability of Tenant nor relieve
Tenant of any obligation hereunder. All insurance to be carried by Tenant shall be
primary to and not contributory with any similar insurance carried by Landlord, whose
insurance shall be considered excess insurance only. Tenant agrees that if Tenant
does not take out and maintain such insurance, Landlord may, upon ten (10) days prior
written notice to Tenant and Tenant’s failure to cure within such ten (10) day
period, (but shall not be required to) procure said insurance on Tenant’s behalf and
charge the Tenant the premiums payable as Additional Rent.

     Tenant shall not use the Premises, or allow the Premises to be used, for any
purpose which may be prohibited by the form of fire insurance policy required to be
carried under this Lease. Tenant shall pay any increase in premiums for casualty and
fire (including all risk coverage) insurance that may be charged during the Term of
this Lease on the amount of such insurance which may be carried by Landlord on the
Premises resulting from Tenant’s particular use thereof (as opposed to office use
generally) whether or not Landlord has consented thereto. In such event, Tenant shall
also pay any additional premium on the insurance policy that Landlord may carry for
its protection against rent loss through fire or casualty. In determining whether
increased premiums are the result of Tenant’s particular use of the Premises, a
schedule, issued by the organization setting the insurance rate on the Premises,
showing the various components of such rate, shall be conclusive evidence of the
several items and charges which make up the casualty and fire insurance rate on the
Premises. Landlord shall deliver invoices for such additional premiums to Tenant at
such times as Landlord may elect, but in no event earlier than the Rent Commencement
Date, and Tenant shall reimburse Landlord therefor as Additional Rent.

     11.3 Landlord’s Insurance. During the Term, Landlord shall maintain (i)
all risk property insurance including, without limitation, riot and civil commotion,
vandalism, malicious mischief, water, fire, burglary and theft, sinkhole collapse,
windstorm, hail, smoke, aircraft or vehicles, sprinkler leakage, and damage from
weight of ice or snow and without any exclusion for terrorism and, if applicable,
boiler and machinery coverage, written at 100% full replacement cost which shall mean
actual replacement value with a deductible not to exceed Twenty-five Thousand Dollars
($25,000.00) and a full replacement cost endorsement insuring the Premises; (ii)
business income insurance as required by Landlord’s Lender; and (iii) such other
insurance and in such amounts as Landlord from time to time may reasonably request
against such other insurable hazards which at the time are commonly insured against
for property similar to the Premises located in or around the region in which the
Premises is located. Commencing on the Commencement Date, Tenant shall pay Landlord,
as Additional Rent, the total cost of such insurance for the Premises (including the
expenses incurred by Landlord relative to insurance appraisals adjusters, and
consultants). Tenant agrees that if Landlord does not take out and maintain such
insurance, Tenant may, upon fifteen (15) days prior written notice to Landlord and
Landlord’s failure to cure within such fifteen-day period, (but shall not be required

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to) procure said insurance on Landlord’s behalf and charge Landlord the premiums. If
Landlord does not reimburse Tenant within such thirty (30) days after Tenant’s written
demand therefor, Tenant shall have the right to set off said payment from the Rent payable
by Tenant to Landlord hereunder.

     11.4 Waiver of Subrogation. Notwithstanding anything to the contrary
contained herein, Landlord and Tenant hereby waive any rights each may have against the
other on account of any loss or damage occasioned to Landlord or Tenant, their respective
property, the Premises or its contents arising from any risk to the extent covered by the
insurance required hereunder. The parties each, on behalf of their respective insurance
companies insuring the property of either Landlord or Tenant against any such loss, waive
any right of subrogation that it may have against Landlord or Tenant, as the case may be.
The foregoing waivers of subrogation shall be operative only so long as available without
invalidating either Landlord’s or Tenant’s policy of insurance. Landlord and Tenant agree
that their respective insurance policies are now, or shall be, endorsed such that said
waiver of subrogation shall not affect the right of the insured to recover thereunder.

     11.5 Tenant Waiver. To the extent permitted by Applicable Laws, Tenant
waives and releases the Landlord from all claims for damage to property sustained by Tenant
relating to:

     (i) directly or indirectly, any act or omission of Landlord or any of its agents,
contractors or employees;

     (ii) the Building or the Premises or any part of either or any equipment or
appurtenance becoming out of repair;

     (iii) any accident in or about the Building or the Premises;

     (iv) directly or indirectly, any act or omission of any other person.

     11.6
Landlord Waiver. To the extent permitted by Applicable Laws, Landlord
waives and releases Tenant from all claims for damage to property sustained by Landlord
relating to;

     (i) directly or indirectly, any act or omission
of Tenant, its agents, contractors or employees;

     (ii) the Building or the Premises or any part of either or any
equipment or
appurtenance becoming out of repair;

     (iii) any accident in or about the Building or the Premises;

     (iv) directly or indirectly, any act or omission
of any other person.

     11.7 Damage. The foregoing Sections 11.5 and 11.6 shall apply especially,
but not exclusively, to damage caused by the flooding of basements or other subsurface
areas, refrigerators, sprinkling devices, air-conditioning apparatus, water, snow, frost,
steam, excessive heat or cold, falling plaster, broken glass, sewage, gas, odors or
noise, or the bursting or leaking of pipes or plumbing fixtures, and shall apply equally
whether the damage results from the act or omission of Landlord, Tenant, or of any other
person, or whether the damage is caused by or resulted from any thing or circumstance
above mentioned or referred to, or any other thing or circumstance, whether of a like or
of a wholly different nature.

ARTICLE 12

USE OF PREMISES

     12.1 Use. Tenant shall use the Premises solely for the purposes set forth in
Section 1.9 and all lawful purposes ancillary thereto and for no other purpose without
the prior written consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed. Landlord or Tenant shall not do or permit anything to be done in
or about the Premises nor bring or keep anything therein which will in any way cause the
cancellation or increase the existing rate of any fire or other insurance upon the
Premises. Landlord and Tenant shall use reasonable efforts to prevent material levels of
odors, emissions, fumes, liquids or other substances or excessive noise from escaping or
extending beyond the Premises. Landlord and Tenant shall not use or allow the Premises to
be used for any unlawful or extra hazardous purpose. Tenant shall refrain from using or
permitting the use of the Premises or any portion thereof as living quarters, sleeping
quarters or for lodging purposes. Tenant shall, at its sole cost and

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expense, promptly comply in all material respects with all applicable federal, state, county, or
municipal laws, ordinances, rules, regulations, directives, covenants, restrictions, orders and/or
requirements now in force or which may hereafter be in force with respect to Tenant’s specific use
and occupancy of the Premises. The judgment of any court of competent jurisdiction or the admission
of Landlord or Tenant in any action against Landlord or Tenant, whether Landlord or Tenant be a
party thereto or not, that Landlord or Tenant has violated any related law, statute, ordinance or
requirement, shall be conclusive of that fact as between Landlord and Tenant.

     12.2 Environmental Compliance. The term “Hazardous Substances,” as used in this
Lease, shall include, without limitation, flammables, explosives, radioactive materials, asbestos,
polychlorinated biphenyls (PCBs), chemicals known to cause cancer or reproductive toxicity,
pollutants, contaminants, hazardous wastes, toxic substances or related materials, petroleum and
petroleum products, and substances declared to be hazardous or toxic under any law or regulation
now or hereafter enacted or promulgated by any governmental authority.

     Landlord and Tenant shall not cause or permit to occur:

	 	(a)	 	Any violation of any federal, state, or local law,
ordinance, or regulation now or hereafter enacted, related to
environmental conditions on, under, or about the Premises, including, but
not limited to, soil and ground water conditions; or
	 
	 	(b)	 	The use, generation, release, manufacture,
refining, production, processing, storage, or disposal of any
Hazardous Substance on, under, or about the Premises, or the
transportation to or from the Premises of any Hazardous Substance.

     Landlord and Tenant shall, at its own expense, comply with all laws regulating the use,
generation, storage, transportation, or disposal of Hazardous Substances (“Laws”) as applicable to
their own activities.

     Landlord and Tenant shall, at its own expense, make all submissions to, provide all
information required by, and comply with all requirements of all governmental authorities (the
“Authorities”) under the Laws applicable to such party.

     Should any Authority or any third party demand that a cleanup plan be prepared and that a
clean-up be undertaken because of any deposit, spill, discharge, or other release of Hazardous
Substances that occurs during the Term, at or from the Premises, or which arises at any time from
Tenant’s use or occupancy of the Premises, and not caused by Landlord, its contractors, employees
or invitees, then Tenant shall, at Tenant’s own expense, prepare and submit the required plans and
all related bonds and other financial assurances; and Tenant shall carry out all such cleanup
plans.

     Each of Landlord and Tenant shall promptly provide all information regarding the use,
generation, storage, transportation, or disposal of Hazardous Substances that is requested by the
other party. If either Landlord or Tenant fail to fulfill any duty imposed under this Section 12.2
within a reasonable time, the other party may do so on behalf of the non-responding party; and in
such case, the non-responding party shall cooperate with the responding party in order to prepare
all documents the responding party deems necessary or appropriate to determine the applicability
of the Laws to the Premises, and for compliance therewith, and the non-responding party shall
execute all documents promptly upon the responding party’s request. No such action by the
responding party and no attempt made by the responding party to mitigate damages under any Law
shall constitute a waiver of any of the non-responding party’s obligations under this Section
12.2.

     Each of Landlord and Tenant shall indemnify, defend, and hold harmless the other, and their
respective officers, directors, beneficiaries, shareholders, partners, agents, and employees from
all fines, suits, procedures, claims, and actions of every kind, and all costs associated
therewith (including attorneys’ and consultants’ fees) arising out of or in any way connected with
any deposit, spill, discharge, or other release of Hazardous Substances that occurs during the
Term, at or from the Premises, or from the other party’s failure to provide all information, make
all submissions, and take all steps required by all Authorities under the Laws and all other
environmental laws.

     Notwithstanding anything contained in this Article 12 to the contrary, and subject to any
existing claims, known or unknown, Tenant shall not have any liability to Landlord under this
Article 12 resulting from any conditions existing, or events occurring, at, in, on, under or
about the Premises prior to the Commencement Date or following the Commencement Date to the
extent to which same results solely and directly from the acts, omissions, negligence or
intentional misconduct of Landlord, its contractors, employees or invitees.

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     To Landlord’s actual knowledge, Landlord represents and warrants that as of the
Commencement Date, Landlord is not aware of any Hazardous Substances Handled at, in,
under, on or about the Premises in violation of Laws. “Handled” shall mean any
installation, handling, generation, storage, treatment, use, disposal, discharge,
release, manufacture, refinement, presence, migration, emission, transportation, or any
other activity of any type in connection with or involving Hazardous Substances.

     The obligations and liabilities under this Section 12.2 shall survive the expiration or
termination of this Lease.

     12.3 Landlord’s Right of Entry. Landlord or its agents, at reasonable
times, following prior written notice (of no less than 48 hours except in the case of
emergency) to Tenant, may enter into the Premises without any liability whatsoever for
the purposes of (i) inspecting the Premises; (ii) inspecting the performance by Tenant
of the terms and conditions hereof; (iii) showing the Premises to purchasers, partners,
or Landlord’s Lender; and (iv) during the last six (6) months of the Term only showing
the Premises to prospective tenants. Landlord’s entry into the Premises pursuant to
this Section shall not interfere with Tenant’s use of the Premises for the conduct of
its business or with any other rights and benefits of Tenant under this Lease, and any
damage caused thereby to the Premises or Tenant’s Property shall be promptly repaired
at Landlord’s expense.

ARTICLE 13

MAINTENANCE AND REPAIR OF PREMISES

     13.1 Tenant’s Inspection. Except as otherwise provided in this Lease and
subject to Landlord’s representations and warranties hereunder, Tenant agrees to accept
the Premises in its existing condition, “as is, where is,” as of the Commencement Date.
Tenant represents, warrants, and covenants to Landlord that Tenant is relying upon the
representations and warranties of Landlord under this Lease along with its own
investigation of the Premises.

     13.2 Tenant’s Obligations. From and after the Commencement Date and
continuously thereafter until the Expiration Date, Tenant, at Tenant’s sole expense,
shall maintain the Premises in a first-class appearance, in compliance with all
Applicable Laws (subject to Landlord’s obligations pursuant to Section 3.3, Section 13.3
and elsewhere in this Lease) and the Exception Documents, in a condition at least equal
to that which existed when Tenant initially opened the Premises for business, and in good
order, condition and repair, and every part thereof and any and all appurtenances thereto
wherever located (including, without limitation, all landscaping) and all other repairs,
renewals and restorations, ordinary and extraordinary, foreseen and unforeseen, and
all other work performed by or on behalf of Tenant. Tenant shall be responsible for
supplying janitorial services to the Premises. Tenant shall do all acts required to
comply with all applicable laws, ordinances, and rules of any public authority relating
to its maintenance obligations as set forth herein. Tenant shall not place a load upon
any floor of the Premises, which exceeds the load per square foot, which such floor was
designed to carry, as determined by Landlord or Landlord’s structural engineer. On or
before the Commencement Date, Landlord shall assign to Tenant any and all construction,
design and materials warranties and any and all maintenance and service agreements
currently servicing the Premises obtained by Landlord with respect to the Premises.

     If Tenant re-keys the Premises, all keys to the exterior doors of the Premises
shall be provided by Tenant to Landlord. Tenant shall, upon the termination of its
tenancy, provide Landlord with the combinations to all combination locks on safes, safe
cabinets and vaults and deliver to Landlord all keys to the Premises and all interior
doors, cabinets, and other key-controlled mechanisms therein, whether or not such keys
were furnished to Tenant by Landlord. In the event of the loss of any key furnished to
Tenant by Landlord, Tenant shall pay to Landlord the cost of replacing the same or of
changing the lock or locks opened by such lost key if Landlord shall deem it necessary
to make such a change. The work “key” as used herein shall refer to keys, keycards, and
all such means of obtaining access through restricted access systems.

     13.3 Landlord’s Obligations. Notwithstanding anything in this Lease to
the contrary, Landlord, not Tenant, at Landlord’s sole cost and expense and not
chargeable to Tenant as Additional Rent, shall undertake and perform all necessary
replacements of the shell and structural portions of the Building and the necessary
replacements due to system failure of the electrical, mechanical and plumbing systems of
the Building, including (i) the plumbing, sprinkler, HVAC and electrical and mechanical
lines and equipment associated therewith, (ii) utility and trunk lines, tanks and
transformers, and (iii) the roof, exterior walls, bearing walls, support beams, floor
slabs, foundation, support columns and window frames, and replacement of the Parking Area
and access ways therefore (“collectively, “Landlord Replacements”). All such Landlord
Replacements shall be performed with reasonable commercial diligence and be of a quality
which is consistent with those customarily furnished by prudent landlords in comparable
office buildings in the Las Vegas area, subject to casualty and condemnation, to which
this Section 13.3 shall not apply. Notwithstanding the foregoing, Tenant shall be
liable for any Landlord Replacements required as a

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result of Tenant’s negligence, willful misconduct or
failure to comply with Tenant’s maintenance and repair obligations, as provided in Section 13.2 (“Tenant
Liable Replacement”). In the event Landlord performs any Tenant Liable Replacement,
Tenant shall reimburse the actual out-of-pocket reasonable costs of the Tenant Liable
Replacement within thirty (30) days following Landlord’s delivery of (a) a
written notice describing in reasonable detail the actions taken by Landlord,
and (b) reasonably satisfactory evidence of the cost incurred by Landlord.

     13.4 Tenant Self-Help. If Landlord fails to commence any Landlord
Repairs, and such failure continues for five (5) Business Days following Landlord’s
receipt of written notice of such failure, then Tenant, upon twenty-four (24) hours’
prior written notice (“Tenant’s Self Help Notice”) delivered to Landlord,
shall have the right to perform such portion of the Landlord Repairs (“Tenant Self
Help”). Tenant’s Self Help Notice shall identify with specificity the nature of the
Landlord Repairs to be undertaken by Tenant and shall include a copy of any cost or
bid proposal submitted to Tenant by such contractor. Landlord shall reimburse the
actual out-of-pocket reasonable costs of Tenant’s Self Help within thirty (30) days
following Tenant’s delivery of (a) a written notice describing in reasonable detail
the actions taken by Tenant, and (b) reasonably satisfactory evidence of the cost of
such remedy.

ARTICLE 14

ALTERATIONS AND ADDITIONS

     14.1 Tenant Alterations. Tenant (so long as the Tenant is Diamond
Resorts Corporation or an affiliate, subsidiary, related entity or Permitted
Transferee (as defined in Section 22.2) thereof (collectively, the “Permitted
Tenant”)) may make any alterations, improvements or additions to the Premises
(collectively “Tenant Alterations”) without Landlord’s consent if such Tenant
Alterations are non-structural, and the costs of all such non-structural Tenant
Alterations performed in any calendar year do not exceed $100,000.00 (“Exempt Tenant
Alterations”). If the then current Tenant is not a Permitted Tenant, Tenant shall
not commence any Tenant Alterations without Landlord’s prior written consent in each
instance. Any Tenant Alterations and Exempt Tenant Alterations shall at all times
comply fully with all applicable federal, state and municipal laws, ordinances,
regulations, recorded covenants and restrictions, codes and other governmental
requirements now or hereafter in force.

     Except for Exempt Tenant Alterations with respect to the Permitted Tenant only,
Tenant shall provide Landlord with a written request for approval of Tenant
Alterations that Tenant would like to make with proposed detailed plans. Landlord
shall have the right to condition Landlord’s prior written consent for any Tenant
Alteration upon Tenant’s: (i) providing Landlord with plans and specifications for
the Tenant Alterations for Landlord’s prior written approval; (ii) obtaining a
building permit and complying with all building and planning laws and regulations
for Tenant Alterations from appropriate governmental agencies; (iii) furnishing a
copy of such building permit and evidence of such compliance to Landlord prior to
the commencement of such work; (iv) complying with all the conditions of such
building permit and such building and planning laws and regulations; (v) providing
Landlord with a copy of the construction contract, construction schedule and list of
subcontractors and suppliers for Landlord’s prior written approval; (vi) obtaining a
builder’s “all risk” insurance policy in an amount and issued by insurance company
acceptable to Landlord, naming Landlord as an additional insured and otherwise
satisfying the requirements of Article 11 of this Lease; and, (vii) providing
Landlord with ten (10) days written notice prior to commencing any such work.
Landlord’s approval of the plans, specifications and working drawings for any Tenant
Alterations shall create no responsibility or liability on the part of Landlord for
their completeness, design sufficiency, or compliance with all laws, rules and
regulations of governmental agencies or authorities. Landlord shall not be liable
for any damage, loss, or prejudice suffered or claimed by Tenant, its agents or any
other person or entity on account of: (a) the approval or disapproval of any plans,
contracts, bonds, contractors, sureties or matters; (b) the construction or
performance of any work whether or not pursuant to approved plans; (c) the
improvement of any portion of the Premises or alteration or modification to any
portion of the Premises; or, (d) the enforcement or failure to enforce any of the
covenants, conditions and restrictions contained in this Lease.

     All work with respect to any Tenant Alterations shall be done in a good and
workmanlike manner
by properly qualified and licensed personnel, and such work shall be diligently
prosecuted to completion. Any such Tenant Alterations, including any roof
penetration, shall be made at Tenant’s sole cost and expense and in such manner as
to not void or detrimentally affect any warranty benefiting the Premises or any
portion thereof.

     14.2 Construction of Tenant Alterations. Notwithstanding anything
contained herein to the contrary, Tenant shall not be required to obtain Landlord’s
consent hereunder with respect to any Tenant Alterations required to be made pursuant
to Tenant’s maintenance and repair obligations set forth in Article 13, provided,
however, Tenant shall be required to obtain Landlord’s prior consent for any
alterations or modifications of any structural components of the Premises. Tenant
shall pay when due all claims for labor or materials furnished or alleged to have
been furnished to or for Tenant at, on, or for use in the Premises. Tenant shall keep
the Premises, and any interest therein, free and clear of all mechanics’ liens and
all other liens. Tenant shall give Landlord immediate written notice

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of any lien filed against the Premises, or any interest therein related to or arising
from work performed by or for the Tenant. Tenant shall give Landlord not less than ten
(10) days’ prior written notice of the commencement of the Tenant Improvements and any
other Tenant Alterations in the Premises, and Landlord shall have the right to post
notices of non-responsibility in or upon the Premises as provided by law. Tenant shall
secure any and all governmental permits, approvals or authorizations required in
connection with any such work, and shall fully comply with all requirements of Chapter
108 of Nevada Revised Statutes, as may be amended, altered or replaced from time to
time, such that Landlord would have a valid notice of non-responsibility, whether or not
Landlord actually records such notice. If Tenant shall in good faith contest the
validity of any such lien, claim or demand, then Tenant, at its sole expense, shall
defend, indemnify, protect and hold Landlord harmless against the same and shall pay and
satisfy any adverse judgment that may be rendered thereby before the enforcement thereof
against the Tenant and Landlord. Notwithstanding the foregoing, at Landlord’s request,
Tenant shall immediately discharge such lien either by payment of the indebtedness due
to the mechanic’s lien claimant or by filing a bond (as provided by statute) as security
therefor. Landlord shall have the right to procure such discharge by filing such bond,
and Tenant shall pay the cost of such bond to Landlord as Additional Rent upon the first
day thereafter that Base Rent shall be due hereunder. In addition, to the extent Tenant
does not elect to defend Landlord, Landlord shall have the right to require that Tenant
pay Landlord’s attorneys’ fees and disbursements, court costs and other costs in
defending any such action if Landlord is named as a party to any such action, the lien
encumbers any portion or interest in the Premises and/or if Landlord elects to defend
any such action or lien.

     14.3 Title to Tenant Alterations. Any Tenant Alterations that do not
require Landlord’s consent hereunder shall not be required to be removed at the end of the
Term. With respect to any Tenant Alterations that require Landlord’s consent hereunder,
Landlord shall notify Tenant in writing at the time Landlord approves any such Tenant
Alterations whether same shall be required to be removed by Tenant at the end of the Term.
IF LANDLORD FAILS TO NOTIFY TENANT IN WRITING AT THE TIME LANDLORD APPROVES ANY TENANT
ALTERATIONS REQUIRING LANDLORD’S CONSENT HEREUNDER THAT ANY SUCH TENANT ALTERATIONS ARE
REQUIRED TO BE REMOVED AT THE END OF THE TERM, LANDLORD SHALL FORFEIT THE RIGHT TO REQUIRE
TENANT TO REMOVE SUCH TENANT ALTERATIONS AT THE END OF THE TERM. Any Tenant Alterations
which are not required to be removed pursuant to the express provisions hereof shall become
the property of Landlord and remain upon and be
surrendered with the Premises at the end of the Term without compensation to Tenant.

     14.4 Settlement of Disputes. It is understood and agreed that any disagreement
or dispute which may arise between Landlord and Tenant relating to any Tenant Alterations,
performed or to be performed with respect to the Premises, shall be submitted to an
architect selected by mutual agreement of Landlord and Tenant whose decision shall be final
and binding on both Landlord and Tenant.

     14.5 Applicable Laws. Throughout the Term, each of Tenant’s and Landlord’s
construction, use of the Premises and alterations, additions and/or improvements to the
Premises shall be in accordance with all applicable rules, orders, statutes, requirements,
codes, executive orders, laws, ordinances and regulations of all duly constituted
authorities, including, without limitation, the Laws and Title III of the Americans with
Disabilities Act of 1990, all regulations issued there under and the Accessibility
Guidelines for Buildings and Facilities issued pursuant thereto, as the same are in effect
on the date hereof and may be hereafter modified, amended or supplemented (“Applicable
Laws”). From and after the Commencement Date, all alterations, changes or modifications
to the Premises as required by Applicable Laws shall be made in a timely manner by Tenant,
at Tenant’s sole cost and expense, so as to avoid any liability and/or damages arising
therefrom.

ARTICLE 15

TENANT’S PROPERTY

     15.1 Tenant’s Property. All supplies and movable trade fixtures owned by
Tenant and installed in the Premises at Tenant’s sole cost and which may be removed without
material damage to the Premises (“Tenant’s Property”) shall remain the property of Tenant
during the Term. Tenant’s Property may be removed from the Premises from time to time
during the Term and at the expiration of the Term or earlier termination thereof, provided
Tenant’s repairs to the reasonable satisfaction of Landlord, any damage to the Premises
caused by the removal of Tenant’s Property.

     15.2 Surrender of Premises. On the Expiration Date or on the sooner
termination hereof, Tenant shall peaceably surrender the Premises in accordance with the
terms of this Section and in good order, condition and repair, broom clean, excepting only
reasonable wear and tear and fire and other unavoidable casualty which Landlord is required
to repair hereunder. The provisions of this Section shall survive termination of this
Lease. Tenant shall not be required to remove any Tenant Alterations permitted or approved
to remain in the Premises in accordance with Section 14.3 hereof or any Tenant Improvements
upon the termination of this Lease. Tenant shall promptly

14

 

surrender all keys for the Premises to Landlord at the place then fixed for notice to
Landlord and shall inform Landlord of the combinations on any locks and safes on the
Premises. If Tenant abandons or surrenders the Premises, any of Tenant’s Property left on
the Premises shall be deemed to be abandoned on the 30th day after Tenant’s
receipt of written notice advising Tenant thereof, and, at Landlord’s option, title shall
thereupon pass to Landlord under this Lease as by a bill of sale. If Landlord elects to
remove all or any part of such Tenant’s Property, the reasonable cost of removal,
including repairing any damage to the Premises caused by such removal, shall be paid by
Tenant if such cost is in excess of the sale proceeds obtained by Landlord for Tenant’s
Property.

ARTICLE 16

DAMAGE AND DESTRUCTION

     If the Premises are damaged by fire or other casualty, Landlord shall repair that
damage as soon as reasonably possible, at its expense, unless: (i) Landlord reasonably
determines that the cost of repair would exceed twenty percent (20%) of the full
replacement cost of the Premises (“Replacement Cost”) and the damage is not covered by
Landlord’s insurance, or (ii) Landlord reasonably determines that the cost of repair would
exceed fifty percent (50%) of the Replacement Cost; or (iii) Landlord reasonably
determines that the cost of repair would exceed ten percent (10%) of the Replacement Cost
and the damage occurs during the final twelve (12) months of the Term. Should Landlord
elect not to repair the damage for one of the preceding reasons, Landlord shall so notify
Tenant in writing within sixty (60) days after the damage occurs and Tenant shall elect to
either (i) repair the damage at its cost and receive any insurance proceeds paid by reason
of such damage, subject to the rights of Landlord’s lender, or (ii) terminate this Lease
and this Lease shall terminate as of the date of that notice and the obligations of the
parties shall terminate as if the Term had naturally expired. Unless either party elects
to terminate this Lease in accordance with the above, this Lease shall continue in effect
for the remainder of the Term. However, provided that if the damage to the Premises is so
extensive that it prevents Tenant’s substantial use and enjoyment of the Premises for more
than thirty (30) consecutive days, then Tenant may elect to terminate this Lease by
written notice to Landlord within ten (10) days from and after Tenant’s inability to use
the Premises for thirty (30) consecutive days and this Lease shall terminate as of the
date of such notice and the obligations of the parties shall terminate as if the Term had
naturally expired. Commencing on the date of any damage to the Premises which renders a
portion thereof unusable, and ending on the date the damage is repaired or this Lease is
terminated, whichever occurs first, the Rent to be paid under this Lease shall be abated
in the same proportion that the floor area of the Premises that is rendered unusable by
the damage bears to the total floor area of the Premises (which the parties agree is
80,808 square feet). In addition, the provisions of this Section shall not be deemed to
require Landlord to repair any improvements or fixtures installed by Tenant.

ARTICLE 17

EMINENT DOMAIN

     If all or a material part (provided that any portion of the Parking Area taken shall
be deemed material) of the Premises is taken by any lawful authority by exercise of the
right of eminent domain, Tenant may terminate this Lease effective as of the date
possession is required to be surrendered to the authority. If all or a material part
(provided that any portion of the Parking Area taken shall be deemed material) of the
Premises shall be so taken and this Lease is not terminated by Tenant, Landlord, without
being required to spend more than it collects as an award, shall restore that part of the
Premises not so taken to a self-contained rental unit substantially equivalent (with
respect to character, quality, appearance and services) to that which existed immediately
prior to such taking, excluding Tenant’s Property. From and after the date possession is
required to be surrendered to the authority, Rent shall be modified to reflect the
reduction of the Premises as a result of such taking. In the event of a taking, Landlord
shall be entitled to the entire amount of the condemnation award without deduction for any
estate or interest of Tenant; provided that nothing in this Section shall be deemed to
give Landlord any interest in, or prevent Tenant from seeking any award against the taking
authority for the taking of personal property and fixtures belonging to Tenant or for
relocation expense, including without limitation any increased costs for Rent and other
expenses required under a lease for replacement premises, or business interruption
expenses recoverable
from the taking authority.

ARTICLE 18

INDEMNIFICATION AND GUARANTY

     18.1 Tenant Indemnification. Tenant shall indemnify, protect, defend and hold
harmless Landlord and its agents, employees, partners, officers, affiliates, subsidiaries,
members, managers, directors, lenders and representatives (“Landlord’s Indemnitees”) from
and against any and all losses, damages (whether actual or otherwise), liabilities,
actions, causes of action (whether legal, equitable or administrative), claims, judgments,
costs, and expenses, including Landlord’s Indemnitees reasonable attorneys’ fees and
disbursements, and court costs which Landlord may suffer or incur arising out of,
involving, or in connection with, the use or occupancy of the

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Premises or any portion thereof, by Tenant, the conduct of Tenant’s business, any
grossly negligent act or willful misconduct of Tenant, its agents, contractors,
employees or invitees, and out of any default or breach by Tenant in the performance in
a timely manner of any obligation on Tenant’s part to be performed under this Lease,
unless caused by the negligence or willful misconduct of Landlord, its agents or
employees. The foregoing shall include, but not be limited to, the defense or pursuit
of any claim or any action or proceeding involved therein, and whether or not, in the
case of claims made against Landlord’s Indemnitees, litigated and/or reduced to
judgment. In case any action, suit or proceeding is brought against Landlord’s
Indemnitees by reason of any of the foregoing matters, Tenant, upon notice from
Landlord, shall defend the same at Tenant’s expense by counsel selected by Tenant, and
Landlord shall cooperate with Tenant in such defense.

     18.2 Landlord Indemnification. Landlord shall indemnify, protect, defend
and hold harmless Tenant and its agents, employees, partners, officers, affiliates,
subsidiaries, members, managers, directors, lenders, and representatives (“Tenant’s
Indemnitees”) from and against any and all losses, damages (whether actual or
otherwise), liabilities, actions, causes of action (whether legal, equitable or
administrative), claims, judgments, costs, and expenses, including Tenant’s Indemnitees
reasonable attorneys’ fees and disbursements, and court costs which Tenant may suffer or
incur arising out of, involving, or in connection with, the use or occupancy of the
Premises, or any portion thereof, by Landlord, the conduct of Landlord’s business, any
grossly negligent act or willful misconduct of Landlord, its agents, contractors,
employees, or invitees, and out of any default or breach by Landlord in the performance
in a timely manner of any obligation on Landlord’s part to be performed under this
Lease, unless caused by the negligence or willful misconduct of Tenant, its agents or
employees. The foregoing shall include, but not be limited to, the defense or pursuit
of any claim or any action or proceeding involved therein, and whether or not, in the
case of claims made against Tenant’s Indemnitees, litigated and/or reduced to judgment.
In case any action, suit or proceeding is brought against Tenant’s Indemnitees by reason
of any of the foregoing matters, Landlord, upon notice from Tenant, shall defend the
same at Landlord’s expense by counsel selected by Landlord, and Tenant shall cooperate
with Landlord in such defense.

     18.3 General. Nothing contained in this Article 18 shall limit (or be
deemed to limit) the waivers contained in Sections 11.4, 11.5 and 11.6 above. In
the event of any conflict between the provisions of Sections 11.4, 11.5 and 11.6 above
and this Article 18, the provisions of Sections 11.4, 11.5 and 11.6 shall prevail.

ARTICLE 19

DEFAULTS AND REMEDIES

     19.1 Events of Default. The occurrence of any of the following
events shall constitute an event of default and a material breach of this Lease on the
part of Tenant:

          A. Failure to Make Rent Payment or Maintain Insurance. Tenant’s failure to
pay any Rent or other sums due hereunder on the date when such payment is due, where
such failure continues for five (5) business days after receipt of notice (which notice
may be oral) from Landlord. If oral notice is given, Landlord shall promptly (but in
no later than one (1) business day thereafter) memorialize such notice in writing to
Tenant via facsimile or electronic mail.

          B. Attachment. If a writ of attachment or execution is levied on this
Lease or on substantially all of Tenant’s Property or if Tenant makes a general
assignment for the benefit of creditors, or provides for an arrangement, composition,
extension or adjustment with its creditors.

          C. Failure to Perform Other Covenants. Tenant’s breach or failure to
perform any of Tenant’s other material covenants, agreements or obligations hereunder or
under the Declaration, where such breach or failure continues for a period of thirty
(30) days after Tenant’s receipt of written notice thereof from Landlord properly
specifying which obligations Tenant has failed to perform, provided however, in the
event a covenant, agreement or obligation is not reasonably susceptible of cure within
such thirty (30) day period no event of default shall have occurred if Tenant commences
to cure such breach or failure within such thirty (30) day period and thereafter
diligently pursues cure of the same such that the breach or failure is cured within
ninety (90) days.

          D. Bankruptcy Related. If Tenant files a voluntary petition for relief or
if a petition against Tenant in a proceeding under the federal bankruptcy laws or other
insolvency laws is filed and not withdrawn or dismissed within forty-five (45) days
thereafter, or if under the provisions of any law providing for reorganization or
winding up of corporations, any court of competent jurisdiction assumes jurisdiction,
custody or control of Tenant or any substantial part of its property and such
jurisdiction, custody or control remains in force unrelinquished, unstayed or
unterminated for a period of forty-five (45) days. If in any proceeding or action in
which Tenant is a party, a

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trustee, receiver, agent or custodian is appointed to take charge of the Premises (or
has the authority to do so) for the purpose of enforcing a lien against the Premises.

          E. Failure to Deliver Financial Statement. Tenant’s failure to
deliver the financial statement required pursuant to Section 31.6 of this Lease within
forty-five (45) days after receipt of written notice from Landlord.

          F. Failure to Maintain Insurance. Tenant’s failure to maintain in full
force and effect any policy of insurance required of Tenant pursuant to Article 11 of
this Lease, where such failure continues for ten (10) days after receipt of written
notice from Landlord.

          G. Repeat Default. In addition to the defaults described above, the
parties agree that if Tenant defaults in the payment of the monthly installment of Base
Rent five (5) or more times during any Lease Year of the Term, regardless of whether
such payment violations are ultimately cured, then such conduct shall, at Landlord’s
option, represent a separate default.

     19.2 Remedies. Upon the occurrence of an event of default by Tenant
as set forth in Section 19.1 above, Landlord shall have the following rights and
remedies, in addition to all remedies available to Landlord at law:

          A. Terminate Lease. Landlord shall have the right to terminate this Lease
and all rights of Tenant hereunder by giving written notice to Tenant. If the Lease is
so terminated, then Landlord may recover from Tenant all direct and actual damages
sustained by Landlord, including, without limitation, deficiency in Rent, reasonable
attorneys’ fees, other collection costs, brokerage fees, and expenses of placing the
Premises in good order. Landlord’s putting the Premises in good order or preparing the
same for rental shall not operate to release Tenant from this Lease.

          B. Re-enter Premises. Landlord shall also have the right, with or without
terminating this Lease, to re-enter and repossess the Premises by detainer suit, summary
proceedings or other lawful means in which event Landlord may from time to time, without
terminating this Lease, either recover, by bringing suits for such amounts, all Base
Rent and Additional Rent as it becomes due or relet the Premises or any part thereof.
Landlord will use commercially reasonable efforts to mitigate its damages resulting from
an event of default by Tenant pursuant to Section 19.1.

          If Landlord elects to relet as provided herein, then rent received by Landlord
from such reletting shall be applied at Landlord’s option: first, to the payment of
any indebtedness other than Rent due hereunder from Tenant to Landlord; second, to
the payment of any reasonable costs of such reletting incurred by Landlord, including
reasonable attorneys’ fees, reasonable tenant improvements, court costs and brokerage
commissions; third, to the payment of the reasonable cost of any cleaning,
alterations and repairs to the Premises; fourth, to the payment of Rent and other
charges due and unpaid hereunder; and the balance, if any, shall be applied in
payment of future Rent as the same may become due and payable hereunder. If the
portion of such rentals received from such reletting during any month which is
applied to the payment of rent under the reletting lease is less than the Rent payable
during that month by Tenant hereunder, then Tenant shall pay any such deficiency to
Landlord immediately upon demand by Landlord. Such deficiency shall be calculated and
paid monthly.

          No re-entry, acts of maintenance or preservation, efforts to relet, or taking
possession of the Premises by Landlord or the appointment of a receiver upon
initiative of the Landlord to protect the Landlord’s interest under the Lease shall
be construed as an election to terminate this Lease unless an express written notice
of such intention is delivered to Tenant or unless the termination thereof is decreed
by a court of competent jurisdiction. Notwithstanding any reletting of the Premises
without termination of this Lease by Landlord, Landlord may at any time after such
reletting elect to terminate this Lease, in which case, Landlord shall have all the
rights and remedies provided by law or equity or this Lease upon termination.

          C. Performance by Landlord. If Tenant breaches or fails to perform any
of Tenant’s obligations under this Lease and the breach or failure continues for thirty
(30) days (or such shorter time period as may be specified otherwise in this Lease)
after Landlord gives Tenant written notice of the breach or failure, Landlord may, but
shall not be obligated to, perform any such obligation for the account and at the
expense of Tenant. Landlord may also so perform any such obligation without notice in
case of an emergency. Landlord’s entry onto the Premises pursuant to this Section shall
not interfere with Tenant’s use of the Premises for the conduct of its business or with
any other rights and benefits of Tenant under this Lease and any damage caused thereby
to the Premises or Tenant’s Property shall be promptly repaired at Landlord’s expense
and any damage caused thereby to the Premises or Tenant’s Property shall be promptly
repaired at Landlord’s expense. Tenant shall reimburse Landlord as

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Additional Rent in an amount equal to the cost incurred by Landlord in the performance
of any obligations required under Article 13 plus an administrative fee equal to ten
percent (10%) of the cost incurred by Landlord. Except in emergency situations, all
work in or on the Premises performed by Landlord under this Lease, to the extent same
would cause any material interference with the conduct of Tenant’s business if
performed during regular business hours, shall be performed outside of regular business
hours.

     19.3 Late Charges. Landlord and Tenant agree that the fixing of actual
damages for Tenant’s breach of any of the provisions of this Lease, including but not
limited to the late payment by Tenant to Landlord of Rent and other amounts due
hereunder, would cause Landlord to incur costs not contemplated by this Lease, the exact
amount of which would be extremely difficult or impracticable to ascertain. Such costs
include but are not limited to accounting, processing, administrative, legal and
clerical charges and late charge which may be imposed upon Landlord by the terms of any
mortgage covering the Premises. Accordingly, if any installment of Rent or any other sum
due from Tenant hereunder has not been received by Landlord or Landlord’s agent within
five (5) days after such amount was due, Tenant shall pay to Landlord a late charge in
the form of interest on the delinquent installment of Rent or any other delinquent sum
due from Tenant equal to two percent (2%) per annum plus the so called “Prime Rate”
published in The Wall Street Journal, as the same may change from time to time, not to
exceed the highest rate then allowed under applicable usury laws, computed from the date
any such amount became due through and including the date
such amount is fully paid. Tenant hereby agrees that said late charge represents a
fair and reasonable estimate of the cost Landlord will incur by reason of late payment
by Tenant. Acceptance of such late charge by Landlord shall not constitute a waiver of
Tenant’s default with respect to such overdue amount nor prevent Landlord from
exercising any other rights and remedies provided for in this Lease, at law or in
equity. Tenant understands and agrees to the foregoing provisions relating to late
charges.

     19.4 Landlord’s Default. Except as otherwise stated in this Lease, and
without limiting the last sentence of Section 19.6, Landlord shall in no event be
charged with default in the performance of any of its obligations hereunder unless and
until Landlord shall have failed to perform such obligations within thirty (30) days
after receipt of written notice by Landlord from Tenant properly specifying which
obligations Landlord has failed to perform, provided however, in the event a covenant,
agreement or obligation is not reasonably susceptible of cure within such thirty (30)
day period no event of default shall have occurred if Landlord commences to cure such
breach or failure within such thirty (30) day period and thereafter diligently pursues
cure of the same such that the breach or failure is cured within ninety (90) days.

     19.5 Performance by Tenant. If Landlord breaches or fails to perform any
of Landlord’s obligations under this Lease and the breach or failure continues for
thirty (30) days (or such shorter time period as may be specified otherwise in this
Lease) after Tenant gives Landlord written notice of the breach or failure, Tenant may,
but shall not be obligated to, perform any such obligation for the account and at the
expense of Landlord. Tenant may also perform any such obligation without notice in case
of an emergency. Landlord agrees to reimburse Tenant on demand for all reasonable,
third party out-of-pocket expenses incurred by Tenant in connection therewith, provided
that Tenant delivers to Landlord adequate bills or other supporting evidence
substantiating said cost.

ARTICLE 20

SUBORDINATION AND ATTORNMENT

     20.1 Subordination. At Landlord’s option, this Lease is and shall be
subordinate to any mortgage, deed of trust and/or any other hypothecation or security
document and advances and obligations thereunder now or hereafter placed upon the
Premises, and any renewals, modifications, consolidations, replacements, and extensions
thereof (collectively “Mortgage”), provided Tenant’s rights, including without
limitation, Tenant’s right to quiet possession, under this Lease shall not be disturbed
so long as a default under Section 19.1 shall not exist. Such subordination shall be
effective upon notice from Landlord to Tenant without any further act of Tenant. Upon
the request of Landlord, Tenant shall, from time to time, execute and deliver any
reasonable documents or instruments that may be required by Landlord or the mortgagee,
beneficiary, or lender (collectively “Landlord’s Lender”) under any such
Mortgage, to effectuate any subordination, provided that Landlord’s Lender agrees not to
disturb Tenant’s rights under this lease, including, without limitation, Tenant’s right
to quiet possession so long as a default under Section 19.1 shall not exist. If
Landlord’s Lender elects to have this Lease prior to the lien of its Mortgage, and gives
written notice to Tenant of such election, this Lease shall be deemed prior to such
Mortgage regardless of the respective dates of execution, delivery and recordation of
this Lease and any such Mortgage.

     20.2 Attornment. Tenant hereby attorns to and shall recognize the
Landlord’s Lender as Tenant’s landlord under this Lease and shall promptly execute and
deliver any reasonable instrument that Landlord may require to evidence such attornment.

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     20.3 Estoppel Certificate. Tenant shall, at any time, but not more than two
(2) times per Lease Year, upon not less than fifteen (15) business days after prior
written notice from Landlord, execute, acknowledge and deliver to Landlord, a statement,
in writing; (i) certifying that this Lease is unmodified and in full force and effect
(or, if modified, stating the nature of the modification and certifying that this Lease
is otherwise unmodified and in full force and effect) and the dates to which the rental,
additional rent and other charges have been paid in advance, if any, and (ii)
acknowledging that, to Tenant’s knowledge, there are no uncured defaults on the part of
Landlord, or specifying each default if any are claimed, and (iii) setting forth all
further information that Landlord may reasonably require. Tenant’s statement may be
relied upon by any prospective purchaser or encumbrance of all or any portion of the
Premises.

     20.4 Limitation of Liability. In the event of any sale or transfer by
Landlord of the Premises and assignment of this Lease by Landlord, Landlord shall be and
is hereby entirely freed and relieved of any and all liability and obligations contained
in or derived from this Lease arising out of any act, occurrence or omission relating to
the Premises or Lease occurring after the consummation of such sale or transfer,
providing the purchaser shall expressly assume all of the covenants and obligations of
Landlord under this Lease. If any prepaid Rent has been paid by Tenant, Landlord may
transfer the prepaid Rent to Landlord’s successor and upon such transfer, Landlord
shall be relieved of any and all further liability with respect thereto.

ARTICLE 21

FORCE MAJEURE

     If either party hereto shall be delayed in or prevented from the performance of
any act required hereunder by reason of acts of God, labor troubles, inability to
procure materials, restrictive governmental laws or regulations or other causes
without fault and beyond the control of the party obligated (financial inability
excepted), performance of such act shall be excused for the period of the delay and
the period for the performance of any such act shall be extended for a period
equivalent to the period of such delay; provided, however, nothing in this Article
shall delay the Rent Commencement Date or excuse Tenant from the prompt payment of
any Rent or other charge required of Tenant hereunder, except as may be expressly
provided elsewhere in this Lease.

ARTICLE 22

ASSIGNMENT AND SUBLETTING

     22.1 Assignment and Subletting. Except as otherwise provided herein,
Tenant may assign this Lease or sublet, license or otherwise permit the Premises or
any part thereof to be used or occupied by others, only with the prior written
consent of Landlord in each instance, which consent shall not be unreasonably
withheld  or delayed, and any such sublease, or permission for occupancy without such
consent shall be voidable at the option of Landlord. If this Lease is assigned, or if
the Premises or any part thereof is sublet or occupied by any party other than
Tenant, Landlord may, after default by Tenant, collect rent from the assignee,
subtenant or occupant, and apply the net amount collected to the Rent herein
reserved, but no such assignment, subletting, occupancy or collection shall be deemed
a waiver by
Landlord of Tenant’s default, or the acceptance of the assignee, subtenant or
occupant as a tenant, or a release of Tenant from the further performance by Tenant
of the obligations on the part of Tenant set forth herein. The consent by Landlord to
an assignment or subletting shall not be construed to relieve Tenant, the assignee or
the subtenant from obtaining the express consent in writing of Landlord to any
further assignment or subletting or to release Tenant from any liability, whether
past, present, or future, under this Lease or from any liability under this Lease
because of Landlord’s failure to give notice of default by Tenant (or by the assignee
or subleases pursuant to the assumption agreement described below) under any of the
terms, covenants, conditions, provisions or agreements or this Lease.

     An assignment of this Lease with the consent of Landlord, if consent is required
hereunder, shall thereupon forever relieve and release Tenant of its obligation to
pay Rent and to perform all of its other obligations under this Lease, provided such
assignee is of equal or greater financial strength as Tenant as reasonably determined
by Landlord. No subletting with the consent of Landlord shall relieve Tenant of its
obligation to pay Rent and to perform all its other obligations under this Lease.
Moreover, Tenant shall indemnify and hold Landlord harmless for any acts or omission
by a subtenant. Each assignee, other than Landlord, shall assume all obligations of
Tenant under this Lease and shall be liable for the payment of all Rent and for the
due performance of all of Tenant’s obligations under this Lease. No assignment shall
be binding upon Landlord unless any document memorializing the transfer is delivered
to Landlord and, the assignee and Tenant deliver to Landlord an executed document
which contains a covenant of assumption by the assignee for the obligations of Tenant
under this Lease. If Tenant desires to assign this Lease, Tenant shall give written
notice to Landlord setting forth the name and address and the current certified
financial statements of the proposed assignee, the experience and background of the
proposed assignee or sublessee, the terms of the proposed assignment, and such other
information as Landlord or its Landlord’s Lender

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may reasonably request in connection therewith. Landlord shall have the right,
exercisable by written notice to Tenant, within thirty (30) days after receipt of
Tenant’s notice, to consent or refuse to consent thereto, and if Landlord fails to
notify Tenant, it shall be deemed to have consented to the requested assignment.

     The acceptance by Landlord of any payment due under this Lease from any other
person shall not be deemed to be a waiver by Landlord of any provision of this Lease or
be a consent to any transfer. Consent by Landlord to one or more transfers shall not
operate as a waiver or estoppel to the future enforcement by Landlord of its rights
under this Lease

     22.2 No Consent Required. Provided same is effected primarily for
independent business purposes and not primarily for the purpose of transferring this
Lease or any interest in the Premises, Tenant, at any time and from time to time,
without the prior consent of Landlord, but with prior notice to Landlord, may assign
this Lease to, or sublease the Premises or any part thereof to, or permit the occupancy
of the Premises, or any part thereof, by (i) any successor entity of Tenant resulting
from a merger or consolidation with Tenant, (ii) any entity succeeding to all or
substantially all of the business and assets of Tenant, or (iii) any entity that, at
the effective or commencement date of the transfer, is an Affiliate of Tenant (any such
entity being herein referred to as a “Permitted Transferee”). An “Affiliate” of any
person or entity is a person or
entity that directly or indirectly through one or more intermediaries controls, is
controlled by or is under common control with the first such person or entity. The word
“control” means the power, directly or indirectly, by voting rights, contract or
otherwise, to direct or cause the direction of the management or policies of a person
or entity.

ARTICLE 23

NOTICES

     All notices, information, consents, requests or replies (“Notice”) required or
permitted to be given hereunder shall be given in writing and shall be sent by United
States registered or certified mail postage prepaid, or by nationally recognized
overnight delivery service (provided that such service is able to furnish evidence of
receipt or refusal of delivery) addressed to the addresses of Tenant and Landlord
specified as “Addresses for Notices and Reports” in Section 1.13, or at such other
place as either Landlord or Tenant may, from time to time designate in a written notice
by certified mail given to the other. Notice shall be deemed to be given upon the
earlier of receipt (or refusal to receive) same by the party to whom the Notice is sent
or three (3) days after the date of the mailing thereof.

ARTICLE 24

QUIET ENJOYMENT

     Landlord covenants and agrees that Tenant, during the Term, shall peaceably and
quietly have, hold and enjoy the Premises, subject to the other terms, covenants,
conditions, provisions and agreements hereof, free from hindrance or disturbance by
Landlord or any person claiming by, through or under Landlord.

ARTICLE 25

ATTORNEYS’ FEES

     Should either party commence an action against the other to enforce any
obligation hereunder, the prevailing party shall be entitled to recover the reasonable
costs thereof and attorneys’ fees actually incurred by such prevailing party
(including the fees and charges of legal assistants or other non-attorney personnel
performing services under the supervision of an attorney), whether or not such
litigation is prosecuted to judgment.

ARTICLE 26

WAIVER

     No waiver of any default or breach of any covenant by either party hereunder
shall be implied from any omission by either party to take action on account of such
default if such default persists or is repeated. Landlord’s acceptance of any payment
which is less than that required to be paid by Tenant shall be deemed to have been
received only on account of the obligation for which it is paid and shall not be
deemed an
accord and satisfaction, notwithstanding any provisions to the contrary asserted
by Tenant, written on any check or contained in any transmittal letter. The subsequent
acceptance of rent hereunder by Landlord shall not be deemed to be a waiver of any
preceding breach by Tenant of any term or covenant hereof, other than the failure of
Tenant to pay the particular rent so accepted, regardless of Landlord’s knowledge of
such preceding breach at the time of acceptance of such rent. An express waiver must
be in writing and signed by a person with the power to contractually bind Tenant or
Landlord. An express waiver shall affect only the default specified in the waiver, and
only for the time and to the

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extent expressly stated. Waivers by either party of any covenant, term, or condition
contained herein shall not be construed as a waiver of any subsequent breach of the same
covenant, term, or condition.

ARTICLE 27

LIMITATION ON CLAIMS

     Any claim, demand, right or defense of any kind by either party hereunder, which is
based upon, arising in connection with or in any way related to this Lease or the
negotiations prior to its execution, shall be barred unless such party commences an
action thereon, or interposes in a legal proceeding a defense by reason thereof, within
twelve (12) months after the date of the inaction or omission or the date of the
occurrence of the event or of the action to which the claim, demand, right or defense
relates, whichever applies.

ARTICLE 28

BANKRUPTCY

     28.1 Tenant’s Interest Not Transferable. Neither this Lease, nor any
interest herein nor any estate hereby created shall pass to any trustee or receiver or
assignee for the benefit of creditors or otherwise by operation of law, except as may be
specifically provided pursuant to the Bankruptcy Code (11 U.S.C. §101, et, seq.).

     28.2 Tenant’s Obligation to Avoid Creditors’ Proceedings. Tenant shall not
cause or give cause for the institution of legal proceedings seeking to have Tenant
adjudicated bankrupt, reorganized or rearranged under the bankruptcy laws of the United
States, and shall not cause or give cause for the appointment of a trustee or receiver
for the assets of Tenant and shall not make any assignment for the benefit of creditors,
or become or be adjudicated insolvent. The allowance of any petition under the
bankruptcy law, or the appointment of a trustee or receiver of Tenant or its assets,
shall be conclusive evidence that Tenant caused or gave cause thereof, unless such
allowance of the petition, or the appointment of a trustee or receiver, is vacated within
ninety (90) days after such allowance or appointment.

ARTICLE 29

EXCEPTION DOCUMENTS

     Landlord represents and warrants and Tenant acknowledges and agrees that, as of the
Commencement Date, this Lease and Tenant’s use of the Premises is subject to the
“Exception Documents” set forth on Exhibit F attached hereto and incorporated by
reference.

     Without limiting the foregoing, this Lease is subject in all respect to the
Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for
The Charleston Business Center made March 10, 1998, by Howard Hughes Properties, Limited
Partnership (the “Declaration”), the Articles, the Bylaws, the Rules, the Design
Criteria and any other documents governing the operation of the Association, the use of
the Lots, the Common Area, or the maintenance and repair of the Lots, the Common Area,
and Improvements, as from time to time amended, modified or supplemented (the “Governing
Documents”). Capitalized terms not otherwise defined in this paragraph shall have the
same meanings as are ascribed to such terms in the Declaration.

ARTICLE 30

INTERPRETATION AND APPLICATION

     30.1 Submission of Lease. Submission of this instrument for examination or
signature by Tenant does not constitute an offer, a reservation of, option for or option
to lease, and it is not effective as a lease or otherwise until execution and delivery by
both Landlord and Tenant.

     30.2 Governing Law. This Lease shall be construed in accordance with and
governed by the statutes, decisions, and other laws of the State of Nevada. Tenant and
Landlord hereby consents to the personal jurisdiction and venue of any State court of
competent jurisdiction located in Clark County, Nevada or Federal court located in Las
Vegas, Nevada and the service of process by any means authorized by any such State or
Federal court.

     30.3 Complete Agreement. This Lease contains all terms, covenants,
conditions, warranties and agreements of the parties relating in any manner to the
rental, use and occupancy of the Premises. No prior agreements or understanding
pertaining to the same shall be valid or of any force or effect. The terms of this Lease
were fully negotiated by the parties hereto and shall not be construed for or against
Landlord or Tenant, because

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either Landlord or Tenant may have drafted this Lease and this Lease shall be interpreted
in accordance with the general meaning of the language herein contained in an effort to
reach the intended result.

     30.4 Amendment. This Lease may not be amended, altered or modified in any
way except in writing signed by the parties hereto.

     30.5 No Partnership As a Result of Lease. It is agreed that nothing
contained in this Lease shall be deemed or construed as creating a partnership or joint
venture between Landlord and Tenant or between Landlord and any other party, or cause
Landlord to be responsible in any way for the debts or obligations of Tenant or any other
party.

     30.6 No Merger. The voluntary or other surrender of this Lease by Tenant, or
a mutual cancellation thereof, shall not work as a merger, but shall, at the option of
Landlord, either terminate all or any existing subleases or subtenancies, or operate as an
assignment to Landlord of any or all such subleases or subtenancies.

     30.7 Severability. If any provision of this Lease or application thereof to
any person or circumstances shall to any extent be invalid, the remainder of this Lease
(including the application of such provision to persons or circumstances other than those
to which it is held invalid) shall not be affected thereby, and each provision of this
Lease shall be valid and enforced to the fullest extent permitted by law.

     30.8 Captions. The captions of the Articles and Sections hereof are for
convenience only and are not a part of this Lease and do not in any way limit or amplify
the terms and provisions of this Lease.

     30.9 Words. The words “Landlord” and “Tenant”, as used herein, shall include
the plural as well as the singular. Words used in the neuter gender include the masculine
and feminine. If Tenant is comprised of more than one individual or entity, the obligations
imposed upon Tenant hereunder shall be joint and several to all parties signing this Lease
as Tenant.

     30.10 Exhibits. The Exhibits, if any, and any Schedules or Riders
attached to this Lease are incorporated herein by this reference and made a part hereof,
and any reference in the body of the Lease or in the Exhibits, Schedules, or Riders to the
Lease shall mean the Lease together with all Exhibits, Schedules and Riders.

ARTICLE 31

MISCELLANEOUS

     31.1 Time. Time is of the essence of each provision hereof.

     31.2 Successors. Subject to the restrictions on transfer contained in
Article 22 hereof, all the terms, covenants and conditions hereof shall be binding upon and
inure to the benefit of the heirs, executors, administrators, successors and assigns of the
parties hereto.

     31.3 Recordation. Tenant shall not record this Lease or any memorandum
hereof. Landlord has the right in its absolute discretion to record, at its sole cost and
expense, this Lease or a memorandum hereof, and, upon Landlord’s request, Tenant shall
execute and have acknowledged the same for recordation.

     31.4 No Recourse. The obligations of both Landlord and Tenant under this
Lease shall be without recourse to the assets of their respective partners, members,
officers, shareholders, directors or employees or any partner of any partner of either
Landlord or Tenant. Landlord and Tenant agree that the foregoing provision shall be
applicable to any covenant or agreement either expressly contained in this Lease or imposed
by statute or at common law.

     31.5 Broker. Landlord and Tenant represent and warrant to each other that it
has not retained the services of any other broker or real estate licensee and owes no other
person or entity any finder’s or broker’s fee, commission or payment of any kind
whatsoever. Landlord and Tenant shall defend, indemnify and hold the other harmless from
and against any and all claims, demands, costs, expenses or liabilities related to or
connected with any broker’s or finder’s fee, commission or payment of any kind asserted by
any person or entity, based on an agreement allegedly made by the indemnifying party.
Landlord shall defend, indemnify and hold harmless Tenant from and against any and all
claims, demands, costs, expenses or liabilities related to or connected with any broker’s
or finder’s fee, commission or payment of any kind asserted by Diversified Interest, Inc.

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     31.6 Furnishing of Financial Certification. Upon Landlord’s written
request, Tenant shall promptly furnish to Landlord (but in no event more than one time
in any consecutive twenty-four (24) month period) with Tenant’s financial statement as
of Tenant’s most recent fiscal year end. So long as the Tenant is Diamond Resorts
Corporation, the financial statements contemplated herein shall be derived from the most
recent audited financial statements of the parent entity of Tenant.

     31.7 Counterparts. This Lease may be executed in multiple counterparts,
all of which shall constitute one and the same Lease.

     31.8 Landlord’s Lender Protection. Tenant agrees to notify in writing any
first Landlord’s Lender whose address has been furnished in writing to Tenant, a copy of
any written notice of default served by Tenant on Landlord. If Landlord fails to cure
such default within the time provided for in this Lease, such Landlord’s Lender shall
have an additional thirty (30) days to cure such default; provided that if such default
cannot reasonably be cured within that thirty (30) day period, then such Landlord’s
Lender shall have such additional time to cure the default as is reasonably necessary
under the circumstances. This Section 31.8 shall
in no way limit Tenant’s rights pursuant to the last sentence of Section 19.6.

     31.9 Independently Provided Services. This Lease is entirely separate
and distinct from and independent of any and all agreements that Tenant may at any time
enter into with any third party for the provision of services, which include, but are
not limited to, telecommunications, office automation, repair, maintenance services,
computer and photocopying (“Independent Services”). Tenant acknowledges that Landlord
has no obligation of any type concerning the provision of Independent Services, and
agrees that any cessation or interruption of Independent Services or any other act or
neglect by the third party providing the Independent Services shall not constitute a
default or constructive eviction by Landlord. Tenant agrees, except to the extent of
the gross negligence or willful misconduct of Landlord, its partners, employees, agents
and/or assigns, to hold harmless and defend Landlord, its partners, employees, agents
and assigns from any claim Tenant may have arising in any way out of the provision (or
lack thereof) of the Independent Services which Tenant has contracted to receive from
the third parties. In no event shall Landlord be liable to Tenant for incidental,
consequential, indirect or special damages (including lost profits) which may arise in
any way out of a claim concerning Independent Services.

     31.10 No Consequential Damages. Except as otherwise expressly required by
Applicable Laws and except with respect to Landlord’s indemnity obligations for a
Holdover in Section 4.1, notwithstanding any other provision of this Lease to the
contrary, in no event shall Landlord or Tenant be liable or responsible for any
indirect, consequential, punitive or exemplary damages, including loss of profits or
business opportunity, arising under or in connection with this Lease.

     31.11 Act of Landlord. No act or conduct of Landlord, including, without
limitation, the acceptance of keys to the Premises, shall constitute an acceptance of
the surrender of the Premises by Tenant before the expiration of the Term. Only a
written notice from Landlord to Tenant shall constitute acceptance of the surrender of
the Premises and accomplish a termination of the Lease. Landlord’s consent to or
approval of any act by Tenant requiring Landlord’s consent or approval shall not be
deemed to waive or render unnecessary Landlord’s consent to or approval of any
subsequent act by Tenant.

     31.12 Entity Authority. Each individual signing this Lease on behalf of
Landlord or Tenant, as the case may be, represents and warrants that he is duly
authorized to execute and deliver this Lease on behalf of the respective entity, and
that this Lease is binding on Landlord and Tenant in accordance with its terms.
Landlord or Tenant shall, at request of the other, deliver a certified copy of a
resolution of its board of directors authorizing such execution.

ARTICLE 32

SIGNAGE

     Tenant, at Tenant’s sole cost and expense, shall have the right to install (i)
building-mounted signage on Building 1 and Building 2, (ii) monument signage on Parcel
1 and Parcel 2 and (iii) such directional, traffic or other exterior or interior
signage that Tenant deems necessary to operate its business at the Premises
(collectively, “Signage”). Such Signage and Tenant’s installation thereof shall comply
with all Applicable Laws and the Exception Documents, and shall be undertaken only
after Tenant obtains Landlord’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed.

23

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease or, as the case may
be, have caused their officers thereunto duly authorized to execute this Lease the day
and year first above written.

AGREED AND ACCEPTED:

	 	 	 	 	 	 	 

	LANDLORD:

	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	H/MX HEALTH MANAGEMENT SOLUTIONS, INC.,

	 	 	 	DIAMOND RESORTS CORPORATION, d/b/a Diamond	 	 
	a Delaware corporation

	 	 	 	Resorts International, a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	/s/ James D. Dyer
 

By: James D. Dyer

	 	 
	 	/s/ David Palmer
 

By: David Palmer
	 	 
	Its: President

	 	 	 	Its: Executive Vice President	 	 

24

 

EXHIBIT
A-1

LEGAL DESCRIPTION

PARCEL I:

THAT
PORTION OF LOT 1 IN BLOCK C OF “SUMMERLIN VILLAGE 12 BUSINESS PARK UNIT NO. 2C
LOT 6”, AS SHOWN BY MAP THEREOF ON FILE IN BOOK 87, OF PLATS, PAGE 02, IN THE OFFICE
OF THE COUNTY RECORDER OF CLARK COUNTY, NEVADA, LYING WITHIN SECTION 36, TOWNSHIP 20
SOUTH, RANGE 59 EAST, M.D.M., CITY OF LAS VEGAS, CLARK COUNTY, NEVADA AND DESCRIBED
AS FOLLOWS:

COMMENCING
AT THE INTERSECTION OF THE CENTERLINE OF TOWN CENTER DRIVE (VARYING
WIDTH) WITH THE CENTERLINE OF PARK RUN DRIVE (60.00 FEET WIDE) AS SHOWN ON SAID
SUBDIVISION MAP; THENCE ALONG THE CENTERLINE OF PARK RUN DRIVE, SOUTH
89°41’53” WEST,
354.76 FEET; THENCE CURVING TO THE RIGHT ALONG THE ARC OF A 2000.00 FOOT RADIUS
CURVE, CONCAVE NORTHEASTERLY, THROUGH A CENTRAL ANGLE OF 10°13’31”, AN ARC LENGTH
OF 356.93 FEET TO A POINT TO WHICH A RADIAL LINE BEARS SOUTH 09°55’24” WEST; THENCE
ALONG THE SOUTHWESTERLY PROLONGATION OF SAID RADIAL LINE, SOUTH 09°55’24” WEST, 49.00
FEET TO THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND DESCRIBED BY “GRANT,
BARGAIN, AND SALE DEED” RECORDED DECEMBER 10,1998 IN BOOK 981210 OF OFFICIAL RECORDS
AS INSTRUMENT NO. 01792 IN THE CLARK COUNTY RECORDER’S OFFICE, CLARK COUNTY, NEVADA;
THENCE ALONG THE WEST LINE OF SAID PARCEL OF LAND, SOUTH 00°18’07” EAST,
210.00 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID WEST LINE, SOUTH
00°18’07” EAST, 333.42 FEET TO THE SOUTHWEST CORNER OF SAID “GRANT, BARGAIN, AND SALE
DEED” PARCEL; THENCE NORTH 89°55’18” WEST, 37.95 FEET; THENCE CURVING TO
THE RIGHT ALONG THE ARC OF A 272.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY, THROUGH
A CENTRAL ANGLE OF 09°45’07”, AN ARC LENGTH OF 46.30 FEET TO A POINT OF REVERSE
CURVATURE THROUGH WHICH A RADIAL LINE BEARS SOUTH 09°49’49” WEST; THENCE CURVING TO
THE LEFT ALONG THE ARC OF A 328.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY, THROUGH
A CENTRAL ANGLE OF 09°45’07”, AN ARC LENGTH OF 55.83 FEET; THENCE NORTH 89°55’18”
WEST, 255.46 FEET; THENCE NORTH 00°18’07” WEST, 322.13 FEET;
THENCE NORTH 89°41’53” EAST, 394.97 FEET TO THE POINT OF BEGINNING.

BEING FURTHER DESCRIBED ON THAT CERTAIN RECORD OF SURVEY FILED IN FILE 108 OF
SURVEYS, PAGE 51 OF OFFICIAL RECORDS.

A-1-1

 

 

EXHIBIT A-2

LEGAL DESCRIPTION

PARCEL II:

THAT PORTION OF LOT 1 IN BLOCK C OF “SUMMERLIN VILLAGE 12 BUSINESS PARK
UNIT NO. 2C LOT 6”, AS SHOWN BY MAP THEREOF ON FILE IN BOOK 87, OF
PLATS, PAGE 02, IN THE OFFICE OF THE COUNTY RECORDER OF CLARK COUNTY,
NEVADA, LYING WITHIN SECTION 36, TOWNSHIP 20 SOUTH, RANGE 59 EAST,
M.D.M., CITY OF LAS VEGAS, CLARK COUNTY, NEVADA AND DESCRIBED AS
FOLLOWS:

COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF
TOWN CENTER DRIVE
(VARYING WIDTH) WITH THE CENTERLINE OF PARK RUN DRIVE (60.00 FEET WIDE)
AS SHOWN ON SAID SUBDIVISION MAP; THENCE ALONG THE CENTERLINE OF PARK
RUN DRIVE, SOUTH 89°41’53” WEST, 354.76 FEET; THENCE CURVING TO THE RIGHT
ALONG THE ARC OF A 2000.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY,
THROUGH A CENTRAL ANGLE OF 10°13’31”, AN ARC LENGTH OF 356.93 FEET TO
A POINT TO WHICH A RADIAL LINE BEARS SOUTH 09°55’24” WEST; THENCE ALONG
THE SOUTHWESTERLY PROLONGATION OF SAID RADIAL LINE, SOUTH 09°55’24”
WEST, 49.00 FEET TO THE POINT OF BEGINNING AT NORTHWEST CORNER OF THAT
CERTAIN PARCEL OF LAND DESCRIBED BY “GRANT, BARGAIN, AND SALE DEED”
RECORDED DECEMBER 10, 1998 IN BOOK 981210 OF OFFICIAL RECORDS AS
INSTRUMENT NO. 01792 IN THE CLARK COUNTY RECORDER’S OFFICE, CLARK COUNTY,
NEVADA; THENCE ALONG THE WEST LINE OF SAID PARCEL OF LAND SOUTH
00°18’07” EAST, 210.00 FEET; THENCE SOUTH 89°41’53” WEST, 394.97 FEET;
THENCE NORTH 00°18’07” WEST, 320.62 FEET TO A POINT ON THE
SOUTHERLY LINE OF COMMON LOT “G” IN BLOCK C OF “THE ARBORS AT SUMMERLIN
VILLAGE 11/12 UNIT NO. 2C” AS SHOWN BY MAP THEREOF ON FILE IN BOOK 80,
PAGE 14 OF PLATS IN THE CLARK COUNTY RECORDER’S OFFICE, CLARK COUNTY,
NEVADA; THENCE ALONG SAID SOUTHERLY LINE, SOUTH 71°18’30” EAST, 97.12
FEET; THENCE CONTINUING ALONG SAID SOUTHERLY LINE, CURVING TO THE LEFT
ALONG THE ARC OF A 2049.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY,
THROUGH A CENTRAL ANGLE OF 08°46’06”, AN ARC LENGTH OF 313.57 FEET TO
THE POINT OF BEGINNING.

BEING FURTHER DESCRIBED ON THAT CERTAIN RECORD OF SURVEY FILED
IN FILE 108 OF SURVEYS, PAGE 52 OF OFFICIAL RECORDS.

PARCEL III:

A NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS AS CREATED IN THAT
CERTAIN RECIPROCAL EASEMENT AGREEMENT RECORDED MARCH 30, 2000 IN
BOOK 20000330 AS DOCUMENT NO. 01413.

A-2-1

 

 

EXHIBIT B

SITE PLAN OF PREMISES

			
	NOTE:	 	THE SITE PLAN SET FORTH HEREIN IS FOR INFORMATIONAL PURPOSES ONLY AND DOES
NOT CONSTITUTE A WARRANTY, REPRESENTATION OR AGREEMENT ON THE PART OF
LANDLORD THAT THE TENANT MIX OR LAYOUT OF THE PROJECT IS OR WILL REMAIN
AS INDICATED HEREON.

B-1

 

 

EXHIBIT C

MEMORANDUM OF LEASE COMMENCEMENT

	 	 	This Memorandum of Lease Commencement is made as of                     , 2008 by H/MX HEALTH
MANAGEMENT SOLUTIONS, INC. (“Landlord”), and DIAMOND RESORTS CORPORATION (“Tenant”). Landlord and
Tenant agree to and acknowledge the following matters:

     1. Landlord and
Tenant have entered into a lease dated as of January 16, 2008, (“Lease”),
covering the Premises located in Las Vegas, Nevada, as more particularly described in the Lease.

     2. All terms defined in the Lease shall have the same meaning when used in this Memorandum of
Lease Commencement.

     3. The Commencement
Date is        , 2008, the Rent Commencement Date is
October 1, 2008, and the Expiration Date of the Lease is September 30, 2018.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Memorandum of Lease Commencement
as of the day and year first above written.

	 	 	 	 	 	 	 

	LANDLORD:

	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	H/MX HEALTH MANAGEMENT SOLUTIONS, INC.,

	 	 	 	DIAMOND RESORTS CORPORATION, d/b/a Diamond	 	 
	a Delaware corporation

	 	 	 	Resorts International, a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

By: James D. Dyer

	 	 
	 	 

By: David Palmer
	 	 
	Its: President

	 	 	 	Its: Executive Vice President	 	 

C-1

 

 

EXHIBIT D

[INTENTIONALLY OMITTED]

D-1

 

 

EXHIBIT E

RENEWAL OPTIONS

Tenant shall have the right to extend the Term two times (each an “Option”) for a
period of five (5) years each (singularly, a “Renewal Term” and collectively the
“Renewal Terms”) by giving Landlord written notice not less than twelve (12) months
prior to the expiration of the initial Term or the first Renewal Term, as the case may
be (the “Election Deadline”) of Tenant’s desire to exercise the Option. If
Landlord does not receive Tenant’s written notice of the exercise the Option on or
before the Election Deadline, then the Option shall immediately lapse and Tenant shall
have no further right to extend the Term of the Lease. The Renewal Terms shall be on
the same covenants, agreements, terms, provisions and conditions as are contained
herein for the initial Term except Tenant shall have no further rights to extend the
Term.

The monthly Base Rent for the first Renewal Term, commencing on October 1, 2018, shall
be the amount determined by increasing the monthly Base Rent during the Lease Year
immediately preceding the first Renewal Term by three and one-half percent (3.5%). On
each successive October 1 during the first Renewal Term, the Base Rent shall be
increased by three and one-half percent (3.5%) of the Base Rent during the Lease Year
immediately preceding such adjustment date.

Base Rent for the second Renewal Term, commencing on October 1, 2023, shall be the
amount equal to the “Fair Market Rental Rate” (as defined below). In no event shall
the Base Rent at the commencement of the second Renewal Term be less than the Base
Rent during the prior preceding year. The Base Rent shall be increased on the first
day of the second Renewal Term (the “FMRR Adjustment Date”) to the “Fair Market
Rental Rate”, determined in the following manner:

Not later than ten (10) months prior to the FMRR Adjustment Date, Landlord and Tenant
shall meet in an effort to negotiate, in good faith, the Fair Market Rental Rate as
of such FMRR Adjustment Date. If Landlord and Tenant have not agreed upon the Fair
Market Rental Rate at least nine (9) months prior to the applicable FMRR Adjustment
Date, the Fair Market Rental Rate shall be determined by using brokers.

If Landlord and Tenant are not able to agree upon the Fair Market Rental Rate within
the prescribed time period, then Landlord and Tenant shall attempt to agree in good
faith upon a single broker not later than eight (8) months prior to the applicable
FMRR Adjustment Date. If Landlord and Tenant are unable to agree upon a single broker
within such time period, then Landlord and Tenant shall each appoint one broker, not
later than seven (7) months prior to the applicable FMRR Adjustment Date. Within (10)
days thereafter, the two appointed brokers shall appoint a third broker. If either
Landlord or Tenant fails to appoint its broker within the prescribed time period, the
single broker appointed shall determine the Fair Market Rental Rate. If both parties
fail to appoint brokers within the prescribed time periods, then the first broker
thereafter selected by a party shall determine the Fair Market Rental Rate. Each
party shall bear the cost of its own broker and the parties shall share equally the
cost of the single or third broker, if applicable.

The brokers used shall have at least fifteen (15) years’ experience in the sales and
leasing of commercial office space in Clark County, Nevada and shall be members of
professional organizations such as the Society of Industrial Realtors, CCIM, or their
equivalent.

The term “Fair Market Rental Rate” shall mean the price that a ready and willing
tenant would pay, as of the applicable FMRR Adjustment Date, as monthly rent to a
ready and willing landlord of property Comparable to the Premises (as defined below)
if such property were exposed for lease on the open market for a reasonable period of
time and taking into account all of the purposes for which such property may be used.
If a single broker is chosen, then such broker shall determine the Fair Market Rental
Rate of the Premises. Otherwise, the Fair Market Rental Rate of the Premises shall be
the arithmetic average of the two (2) of the three (3) broker recommendations which
are closest in amount, and the third broker recommendation shall be disregarded.
Landlord and Tenant shall instruct the broker(s) to complete their determination of
the Fair Market Rental Rate not later than four (4) months prior to the applicable
FMRR Adjustment Date. If the Fair Market Rental Rate is not determined prior to the
applicable FMRR Adjustment Date, then Tenant shall continue to pay to Landlord the
Base Rent applicable to the Premises immediately prior to such renewal, until the
Fair Market Rental Rate is determined. When the Fair Market Rental Rate of the
Premises is determined, Landlord shall deliver notice thereof to Tenant, and Tenant
shall pay to Landlord, within ten (10) days after receipt of such notice, the
difference between the Base Rent actually paid by Tenant to Landlord and the new Base
Rent determined hereunder.

E-1

 

 

For the purpose of determining Fair Market Rental Rate, “Comparable to the Premises”
shall mean office space that is:

	 	(i)	 	Comparable in size, location, and quality to the Premises;
	 
	 	(ii)	 	Located in a comparable building and project; and
	 
	 	(iii)	 	Currently occupied by a tenant which desires to extend its
existing term to the term of the extension period.

In determining Fair Market Rental Rate, the broker(s) shall treat the Premises “as is”,
(shall not include any concessions granted to a tenant -including but not limited to:
free rent, security deposit concessions, moving cost contributions, tenant improvement
allowances, brokerage fee payment, space improvements, etc.).

At any time after Tenant has exercised an Option, Landlord and Tenant, upon request of
either, will sign and acknowledge a written memorandum evidencing such facts, setting
out the date to which such Renewal Term will extend, and confirming the rental rates
which will be applicable during such Renewal Term.

E-2

 

 

EXHIBIT F

EXCEPTION DOCUMENTS

	1.	 	Reservations and Easements in the patent from the United Stales of America, recorded
September 15, 1955, in Book 67 as Document No. 56940, of Official Records and recorded March
27, 1956 in Book 88 as Document No. 76769, of Official Records.
	 
	2.	 	Master Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for
Summerlin Community Association, recorded September 25, 1990 in Book No. 900925 as Document
No. 01274 of Official Records.
	 
	 	 	Amended and Restated Declaration of Covenants, Conditions, Restrictions and Reservation of
Easements for Summerlin North Community Association, recorded August 15, 1997 in Book No.
970815 as Document No. 00692 of Official Records.
	 
	 	 	Summerlin North Community Association Delegate District Designation, recorded October 16,
1998 in Book 981016 as Document No. 01503 of Official Records.
	 
	3.	 	Development Agreement for Summerlin Villages 10, 11, 12, and 26, recorded May 24, 1994, in
Book 940524 as Document No, 00234, of Official Records.
	 
	4.	 	Development and Financing, recorded May 30, 1996, in Book 960530 as Document No. 01157, of
Official Records.
	 
	5.	 	Dedications and Easements as shown on the recorded Map referred to herein, on file in Book 80
of Plats, Page 14, of Official Records.
	 
	6.	 	Declaration of Covenants, Conditions and Restrictions for The Charleston Business Center,
recorded March 10, 1998 in Book No. 980310 as Document No. 01438 of Official Records.
	 
	7.	 	Dedications and Easements as shown on the recorded Map referred in herein, on file in Book 87
of Plats, Page 2, of Official Records.
	 
	8.	 	Record of Survey performed by Paul Burn, filed in File 108 of Surveys at Page 51, recorded
March 30, 2000, in Book 20000330, as Document No. 01407 of Official Records. Affects: Parcel I
	 
	9.	 	Record of Survey performed by Paul Burn, filed in File 103 of Surveys at Page 52, recorded
March 30, 2000, in Book 20000330, as Document No. 01408 of Official Records. Affects: Parcel
II
	 
	10.	 	Declaration of Special Land Use Restrictions, Option to Repurchase and Right of First
Refusal, recorded March 30, 2000, in Book No. 01409, of Official Records.
	 
	 	 	Partial Expiration of Declaration of Special Land Use Restrictions, Option to Repurchase and
Right of First Refusal, recorded October 31, 2006, in Book 20061031 as Document No. 02839, of
Official Records.
	 
	11.	 	Declaration of Special Land Use Restrictions, Option to Repurchase and Right to First
Refusal, recorded March 30, 2000, in Book 20000330 as Document No. 01410, of Official Records.
	 
	12.	 	Grant of Easements, recorded March 30, 2000, in Book 20000330 as Document No. 01412, of
Official Records.
	 
	13.	 	Reciprocal Easement Agreement, recorded March 30, 2000, in Book 20000330 as Document No.
01413, of Official Records.
	 
	14.	 	Utility, Sewer and Storm Drain Easement, recorded March 30, 2000, in Book 20000330 as
Document No. 01414, of Official Records.

F-1

 

 

	15.	 	Declaration of Special Use Restrictions, recorded June 8, 2000, in Book 20000608
as Document No. 00734, of Official Records.
	 
	16.	 	An easement affecting that portion of said land and for the purposes therein and
incidental purposes thereto, in favor of Las Vegas Water District, a Quasi
Municipal Corporation, for pipelines, recorded October 20, 2000, in Book 20001020
as Document No. 01025 of Official Records.
	 
	17.	 	An easement affecting that portion of said land and for the purposes therein and
incidental purposes thereto, in favor of City of Las Vegas, for pipes and conduits,
recorded October 31, 2000, in Book 20001031 as Document No. 02474 of Official
Records.
	 
	18.	 	An easement affecting that portion of said land and for the purposes therein and
incidental purposes thereto, in favor of Central Telephone Company (Nevada
Division), a Delaware corporation d/b/a SPRINT, for perpetual non-exclusive right
of way and easement, recorded December 13, 2004, in Book 20041213 as Document No.
00496 of Official Records.
	 
	19.	 	Design Guidelines and Standards, dated August 31, 1994, updated November 2005,
by Summerlin North Community Association. (Unrecorded document, available at:
http://summerlink.com/assets/associations/north/CritDesignGuidelinesNov2005.pdf)
	 
	20.	 	Resolutions and Policies of Summerlin North, as adopted and amended from time to
time by the Board of Directors of the Summerlin North Community Association.

F-2

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