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Exhibit 10.04

 

 
 

SHALIMAR OFFICES, LLC
  NATIONWIDE FINANCIAL SOLUTIONS, INC., LEASE    
    

        THIS LEASE, made and entered into the 1st day of April 2004 between Shalimar Offices, LLC, and Nationwide Financial Solutions, Inc., (herein
respectively called Lessor" and "Lessee" without regard to gender or number). 

1.     SUMMARY OF LEASE TERMS  

        1.01 The
Premises referred to in this Lease contain approximately 4,859 gross square feet located as shown on Exhibit A and Exhibit A-I attached
(Units 100, 101, and 102). 

        1.02 The
Project referred to in this Lease is the Country Club Office Condos located west of the Price Freeway and north of Southern Avenue in Tempe, Arizona, consisting of
approximately 11,753 gross square feet. The Project address is 3231 South Country Club Way, Tempe, Arizona 85282. 

        1.03 Lessee's
permitted use: Financial services and other related business operations, including but not limited to debt relief services. 

        1.04 Lease
Term: The Lease Term Commences on April 1, 2004, and ends on March 31, 2009. 

        1.05 Base
Monthly Rent: On the 4,859 square foot base, the Base Monthly Rent shall be seven thousand six hundred ninety-three and 42/100 Dollars ($7,693.42) (see rent
schedule in Exhibit B) in lawful money of the United States of America, payable monthly in advance. 

        1.06 Additional
Expense: Management Fee: The management fee in addition to the Base Monthly Rent shall be $100.00. 

        1.07 Additional
Expense: Property Tax: The property tax fee in addition to the Base Monthly Rent shall be $1,100.00. 

        1.08 Additional
Expense: Property Dues: The property dues fee in addition to the Base Monthly Rent shall be $192.40. 

        1.09 Security
Deposit: Equal to the last months rent of $9,351.40 in lawful money of the United States of America, payable in advance. 

        1.10 Rent
abatement equal to the first months rent payment or $7,693.42. 

        1.11 Number of parking spaces available to Lessee: Five covered and 15 open spaces. Unallocated parking on city surface
streets.

	1.12	 	Lessor:	 	Shalimar Offices, LLC
	 	 	Address:	 	14312 E. Thoroughbred Trl

Scottsdale, AZ 85259
	

1.13	
 	

Lessee:	
 	

Nationwide Financial Services, Inc.
	 	 	Address:	 	3231 S. Country Club Way, Suite 102

Tempe, AZ 85282

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        1.14 Notice
Addresses: 

	Shalimar Offices, LLC	 	Nationwide Financial Services, Inc.
	14312 E. Thoroughbred Trl	 	3231 S. Country Club Way
	Scottsdale, AZ 85259	 	Suite 102

Tempe, AZ 85282

2.     LEASED PREMISES

        2.01 Lessor
leases to Lessee and Lessee hires from Lessor the Premises described in Section 1.01, together with a coterminous, nonexclusive license to use the
driveways, parking lots, sidewalks and other common areas associated with the Project (collectively, the "Common Areas") in accordance with the terms of this Lease. By taking possession of the
Premises, Lessee acknowledges that it has examined the Premises and accepts the Premises in their present condition, subject to any additional work Lessor has agreed to do as stated on
Exhibit B attached. Except as provided on Exhibit B, Lessor is under no other obligation to alter, change, decorate or improve the Premises. 

3.     TERM

        3.01 The
term of this Lease shall be for a period of 60 full calendar months, plus the partial month, if any, immediately following the commencement of the lease term
("Lease Term"). The Lease Term shall commence on April 1, 2004. 

4.     BASE MONTHLY RENT

        4.01 The
Base Monthly Rent for the first month of the Lease Term plus the Additional Rent is due and payable upon execution of this Lease; thereafter, it shall be due on the
first day of each calendar month of the Lease Term. Lessee will pay, without deduction or offset, prior notice or demand, Base Monthly Rent plus the Additional Rent at the place designated by Lessor
from time to time. In the event that the Term of this Lease commences or ends on a day other than the first day of a calendar month, the Base Monthly Rent and Additional Rent shall be prorated using a
thirty (30) day month. 

        4.02 Any
installment of rent or any other charge payable by Lessee which is not paid within ten (10) days after it becomes due will bear a late charge equal to ten
percent (10%) of such installment or the sum of twenty-five dollars ($25.00) whichever is greater, and in addition, interest on said delinquent payment at the rate of ten percent (10%) per
annum for the period such item of rent remains unpaid. A twenty-five dollar ($25.00) handling charge will be paid by Lessee to Lessor for each returned check and, thereafter, Lessee will
pay all future payments of rent by money order or cashiers check. 

        4.03 On
April 1, 2005, and on each April 1 thereafter during the Lease Term, including any extensions or
renewals thereof, the Base Monthly Rent payable by Lessee for each month during the ensuing twelve (12) month period (or such shorter period as may be determined by reason of any earlier
expiration or termination of the Lease Term) shall be increased to an amount determined by multiplying the amount of the Base Monthly Rent plus the four additional fees in effect for the last month
prior to the date of such adjustment by 110%. 

5.     ADDITIONAL RENT

        5.01 All
charges payable by Lessee other than Base Monthly Rent are called "Additional Rent." Unless this Lease provides otherwise, Additional Rent shall be paid with the
next monthly installment of Base Monthly Rent. As used herein, the term "Rent" means Base Monthly Rent and Additional Rent, and the phrase "Lessee's Proportionate Share" means 70% (which reflects
Lessee's portion of the gross leasable area of the Project). 

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        5.02 Lessee
shall pay, as Additional Rent, all excise, privilege, sales, rental or transaction privilege taxes levied or assessed by any governmental authority against, on
account of, allocable to or measured by any or all amounts payable hereunder by Lessee or the receipt thereof by Lessor (except state or federal income taxes levied or assessed against Lessor). 

        5.03 "Operating
Costs" are all costs and expenses incurred by Lessor during the term of this Lease in connection with owning, operating, maintaining, managing, repairing and
insuring the Project including, but not limited to, the following: all management fees; the cost of all supplies, materials, labor, equipment, and utilities (including but not limited to, water,
electricity, gas, lighting, sewer, and waste disposal) used in or related to the operation, maintenance and repair of the Common Areas; all amounts payable to any owners' association under any
covenants, conditions or restrictions applicable to the Project; all real estate tax consulting fees; all fees for licenses or permits related to the ownership or operation of the Project; all
premiums and costs of liability, casualty, property and other insurance related to the Project; all costs of patching, overlaying, sealing and restriping roadways, driveways and parking areas; all
costs of preventative maintenance of all building roofs and 70% annually of the replacement cost of the building roof; maintenance and repair costs related to building exteriors including painting;
amortization (along with reasonable financing charges) of capital improvements made to the Common Areas which may be required by any government authority or which will improve the operating efficiency
of the Project. Except as specified above, Operating Costs shall not include costs relating to structural repairs, or the maintenance or repair of any interior space other than the Premises. Operating
Costs will not include depreciation of the Premises nor any overhead, or general and administrative charges of Lessor or its employees. 

        5.04 Lessee's
total "Additional Rent" costs for this project are currently estimated to be $100 for Management Fees, $1,100 for Property Taxes, and $192.40 for Property
Dues. These amounts may be adjusted up or down depending on the actual incurred expenses as outlined in section 5.02 & 5.03. 

        5.05 Lessee
is responsible for interior janitorial cleaning and utilities for their suite. 

        5.06 "Taxes"
are all fees, assessments, taxes and other charges of every kind whatsoever now or hereafter levied or assessed against the Project or the owner thereof or
imposed upon the Project or the owner thereof by any governmental or quasi-governmental entity, including any improvement districts, which are payable for any period during the term of this Lease. 

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6.     USE OF PREMISES; QUIET CONDUCT; HAZARDOUS MATERIALS

        6.01 The
Premises may be used and occupied for Lessee's Permitted Use as defined in Section 1.03, and for other purposes with Lessor's prior written consent. Lessee
will comply with all covenants, conditions and restrictions of public record and with all laws, ordinances, orders and regulations affecting the Premises or Common Areas. Lessee shall not use the
Premises for, or carry on, or permit to be carried on, any offensive, noisy or dangerous trade, business, manufacture or occupation, nor permit any auction sale to be held or conducted on or about the
Premises. Lessee shall not do or suffer anything to be done upon the Premises that will cause structural injury to the Premises or the building of which the Premises are a part, or the Common Areas.
No part of the Premises shall be overloaded and no machinery, apparatus or other appliance shall be used or operated in or upon the Premises which will in any manner injure, vibrate or shake the
Premises or the building of which it is a part. No use shall be made of the Premises which will in any way impair the efficient operation of the sprinkler system (if any) within the building
containing the Premises. Lessee shall not create any nuisance or menace, or disturb the quiet enjoyment of other tenants. Use of the Premises shall be limited to the interior space and Lessee will not
cause, maintain or permit any outside storage on or about the Premises or Common Areas. In addition, Lessee will not allow any condition or thing to remain on or about the Premises or Common Areas
which may diminish the appearance or aesthetic qualities of the Premises or Common Areas of the Project. The keeping of a dog or other animal about the Premises is prohibited.  Notwithstanding the foregoing, animals used to
assist the handicapped shall be permitted in and around the Premises.

        6.02 Lessee
shall not cause or permit any Hazardous Material to be brought upon, kept, consumed, used, or produced in or about the Premises by Lessee, its agents, employees,
contractors, or invitees, without the prior written consent of Lessor. Excepted from the foregoing prohibition are the substances, if any, identified in Exhibit C attached, which Lessee hereby
agrees to transport, keep, store, use and dispose of in a manner that complies with all laws regulating any such Hazardous Material. If any substances are listed on Exhibit C, Lessee shall
provide Lessor with a written Best Management Practices Plan setting forth in detail how Lessee will store, use and handle such Hazardous Material. If Lessee breaches the obligations stated in the
preceding sentence, or if the presence of Hazardous Material on the Premises caused or permitted by Lessee results in contamination of the Premises or the Project or if contamination of the Premises
or Project by Hazardous Material otherwise occurs for which Lessee is legally liable, then Lessee shall indemnify, defend and hold Lessor harmless from any and all claims, judgment, damages,
penalties, fines, costs, liabilities, or losses (including, without limitation, diminution in value of the Project, damages for the loss or restriction on use of rentable or usable space or of any
amenity of the Project, damages arising from any adverse impact on marketing of space in the building, and sums paid in settlement claims, attorney's fees, consultant fees and expert fees) which arise
during or after the Lease Term as a result of such contamination.. This indemnification of Lessor by Lessee includes, without limitation, costs incurred
in connection with any investigation or monitoring of site conditions or any cleanup, remedial, removal or restoration work required by any federal, state or local governmental agency or political
subdivision because of Hazardous Material present in the Premises or in the soil or ground water under the Project. Without limiting the foregoing, if the presence of any Hazardous Material on the
Premises caused or permitted by Lessee results in any contamination of the Premises or the Project, Lessee shall promptly take all actions at its sole expense as are necessary to return the Premises
or the Project to the condition existing prior to the introduction of any such Hazardous Materials to the Premises or the Project; provided that Lessor's approval of such actions shall first be
obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the
Premises. The obligations of Lessee under this Section 7.02 shall survive the expiration or termination of this Lease. 

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        6.03 Lessee
shall immediately notify Lessor in writing of any condition or occurrence on or with respect to the Premises or the Project that has resulted or would reasonably
be expected to result in noncompliance by Lessee of any laws regulating any Hazardous Materials, or which has resulted or may result in the contamination of any portion of the Premises or the Project,
or form the basis of any claim under the indemnification provisions of Section 7.02. Lessor may, upon ten (10) days prior written notice to
Lessee, undertake an environmental audit of the Premises and the Project for the account of Lessor at any time during the Lease Term; provided, however, if any contamination is
found to have been caused or permitted by Lessee, Lessee shall promptly reimburse Lessor for the cost of such audit and shall immediately comply with its obligations under Section 7.02. 

        6.04 "Hazardous
Material" is used in its broadest sense and shall include, but not be limited to, any petroleum base products, pesticides, paints and solvents,
polychlorinated biphenyl, lead, cyanides, DDT, acids, ammonium compounds and other chemical or natural products and any substance or material defined or designated a contaminant or hazardous or toxic
substance, material or waste or other similar term, by any federal, state or local statute, regulation or ordinance presently in effect or that may be promulgated in the future, and as such statutes,
regulations and ordinances may be amended from time to time. 

7.     PERSONAL PROPERTY TAXES

        7.01 Lessee
will pay all taxes charged or assessed against trade fixtures, furnishings, equipment or any personal property belonging to Lessee. Lessee will cause all
personal property taxes to be billed separately to Lessee. If any taxes on Lessee's personal property are charged or assessed to Lessor, Lessee will pay Lessor the taxes for the personal property
promptly upon demand. 

8.     PARKING

        8.01 Lessee
and Lessee's customers, suppliers, employees and invitees (not to include vehicles storing Hazardous Materials) shall have a non-exclusive license to
park in common with other tenants in the parking facilities as designated by Lessor. Lessee agrees not to overburden the parking facilities and agrees to cooperate with Lessor and other tenants in the
use of the parking facilities. Lessor reserves the right to assign specific spaces to Lessee or other tenants, to make changes in the Common Areas (including the parking layout) from time to time, to
promulgate parking rules and regulations and to establish reasonable time limits on parking. Lessee, its customers, suppliers, employees and invitees collectively at any given time shall not occupy
more than the maximum number of parking spaces designated in Section 1.11; however, Lessor does not represent or warrant that the number of parking spaces specified in Section 1.11 at
all times will be available for use by Lessee and its customers, suppliers, employees and invitees. Lessee shall not use or obstruct any loading dock that is not located directly adjacent to the
Premises or obstruct any driveway or parking space. 

9.     UTILITIES

        9.01 Lessee
will pay for all electricity and other services metered, chargeable or provided to the Premises. Lessor will pay for water and sewer charges. If Lessee uses
water in connection with any manufacturing activity or if Lessee uses water in processing its products, Lessor may, at Lessee's expense, separately meter Lessee's Premises or estimate the water usage
and the cost of such water and sewer will be paid by Lessee. Lessor will not be liable or deemed in default hereunder nor will there be any abatement of rent for any interruption or reduction of
utilities or services unless caused by Lessor. Notwithstanding the foregoing, if such interruption in utilities is not cured within sixty
(60) days Lessee shall have an option to terminate this lease, without penalty. Lessee agrees to comply with energy conservation programs implemented by Lessor to comply
with applicable laws or ordinances. 

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        9.02 Lessee
shall not place any trash or refuse in any area outside the building except in closed containers or dumpsters designed for that purpose. Lessor shall not be
required to furnish any janitorial or cleaning for the Premises. 

10.   ALTERATIONS, MECHANIC'S LIENS

        10.01     Except
as otherwise provided in Exhibit B, Lessee will not make any alterations to the Premises without Lessor's prior written consent, which
Lessor may withhold at its sole discretion. No such alterations may proceed without Lessor's prior written approval of: (i) Lessee's contractor; (ii) detailed plans and specifications
for such work approved by the applicable governmental agencies; (iii) Lessee's contractor's waiver of its mechanic's lien rights and guarantee that any mechanic's liens placed against the
Premises will be removed within thirty (30) days of receipt of notice of intent to file lien; and (iv) adequate proof of insurance
indicating that Lessee's contractor carries workers' compensation insurance and is insured for public liability, automobile liability (owned and non-owned) and property damage with
combined single limit per occurrence coverage of not less than $1,000,000. In addition, before alterations may begin, valid building permits or other required permits or licenses must be furnished to
Lessor. Once the alterations begin, Lessee will diligently and continuously pursue their completion. At Lessor's option, any alteration may become part of the realty and belong to Lessor. Lessee shall
be responsible for meeting all requirements of the Americans with Disabilities Act (ADA). 

        10.02     Notwithstanding
anything in Section 11.01, Lessee, with written consent of Lessor, may install trade fixtures, equipment and machinery in
conformance with the ordinance of the applicable city and county, and the same shall be removed at or before termination of this Lease, if so required by Lessor. Lessee shall repair at its cost and
expense any damage to the Premises caused by such removal. 

        10.03     Lessee
will pay all costs for alterations made by or through Lessee and will keep the Premises and the building of which the Premises are a part free
from any mechanic's or material supplier's liens arising out of work performed for, materials furnished to, or obligations incurred by Lessee. 

        10.04     Lessor
will have the right to construct or permit construction of tenant improvements in or about the Project for existing and new tenants and to alter
any buildings and Common Areas, Lessee understands and agrees that such construction will not be deemed to constitute a breach of this Lease by Lessor. 

11.   CASUALTY INSURANCE AND LIABILITY INSURANCE

        11.01     Throughout
the Lease Term, Lessor shall maintain in force a property insurance policy covering all risks of direct physical loss or damage, other than
those exclusions contained in Special Form coverage similar to the most recent edition of ISO form number CP 1030. Such policy shall include coverage for (a) the building containing the
Premises in an amount equal to 100% of its full replacement cost, without offset for depreciation, (b) any tenant improvements constituting a part of the Premise, and (c) business
interruption in an amount equal to 100% of Lessor's losses. 

        11.02     Throughout
the Lease Term, Lessor shall maintain in force a comprehensive general public liability insurance policy with minimum limits of $1,000,000 per
occurrence, covering claims for death, bodily injury, personal injury and/or property damage. 

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        11.03     Throughout
the Lease Term, Lessee, at its sole expense, shall maintain in force a property insurance policy covering all risks of direct physical loss or
damage, other than those exclusions contained in Special Form coverage similar to the most recent edition of ISO Form number CP 1030. Such policy shall include coverage for
(a) all of the Lessee's personal property and equipment in or about the Premises (including any trade fixtures and removable clean rooms) in an amount equal to 100% of its full replacement
cost, and (b) business interruption in an amount equal to 100% of Lessee's losses. 

        11.04     Throughout
the Lease Term, Lessee, at its sole expense, shall maintain in force a comprehensive, general liability insurance policy and a comprehensive,
automobile liability insurance policy for owned and non-owned vehicles, with minimum limits in each case of $2,000,000 per occurrence, covering claims for death, bodily injury, personal
injury and/or property damage. The required limits of liability shall not in any way limit Lessee's liability under paragraph 13.01 or under any other part of this Lease. Prior to occupancy,
certificates evidencing the efficacy of such policies and coverage must be delivered to Lessor, and Lessee shall notify Lessor, in writing, not less than thirty (30) days prior to any
cancellation or material change which affects the Lessor's interest. Lessee will provide evidence of renewed insurance coverage at each anniversary, prior to the expiration of any current policy.
Lessee's failure to provide evidence of this coverage to Lessor may, in Lessor's sole discretion, constitute a default under this Lease. 

        11.05     Except
as expressly authorized as a part of Lessee's Permitted Use, or as otherwise expressly consented to by Lessor in writing, Lessee shall not do or
permit anything to be done within or about the Premises which will increase the existing insurance premium on the Project or any part thereof or cause the cancellation of any insurance policy covering
the Project or any part thereof. Nor shall Lessee keep, use or sell, or permit anyone to keep, use or sell, any article in or about the Premises which may be prohibited by the standard form of fire
and other insurance policies. Lessee, at its sole cost and expense, shall comply with any loss control recommendations pertaining to the Premises made by any insurance carrier or organization insuring
the Project or any part thereof, or governing the insurance rates for the Project or any part thereof. 

12.   INDEMNIFICATION AND WAIVER OF CLAIMS

        12.01     Lessee
hereby waives, and releases and discharges Lessor from all claims, demands, liability and causes of action hereafter arising against Lessor in
connection with any loss or damage to any improvements, equipment or other property of Lessee or others on or about the Premises (including without limitation any damages resulting from the loss of
use thereof and any other consequential damages), any personal or bodily injury or the death of any person, regardless of the cause or time thereof or whether caused by the negligence of Lessor or any
person or entity for whose acts Lessor is liable or responsibIe Lessee will defend, indemnify and hold Lessor harmless from and against any and all claims, actions, proceedings, expenses, damages and
liabilities, including attorneys' fees arising out of, connected with, or resulting from, any use of the Premises by Lessee or its agents, employees, contractors or invitees. This waiver and
indemnification includes, without limitation, any failure of Lessee to fully comply with all of the terms and conditions of this Lease, and excepts only any damage or injury which is the direct result
of intentionally wrongful acts of Lessor or its agents or employees. 

13.   REPAIRS

        13.01     Lessee shall be responsible for damages caused by Lessee or its agents, employees, contractors or invitees. Lessee shall also be
responsible for general upkeep of the Premises, excluding normal wear and tear.

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        13.02     Notwithstanding
Section 14.01, Lessor shall maintain all air conditioning equipment, evaporative coolers, plumbing,
utilities, mechanical equipment, floors and flooring, skylights, exterior walls and roofs in good working order, condition and repair; provided, however, that the cost thereof
shall be included as Operating Costs under Section 5.03. 

        13.03     Lessee
will not make repairs to the Premises for the account of Lessor, whether by deduction of rent or otherwise; nor shall Lessee vacate the Premises
or repudiate this Lease claiming abatement or reduction of rent because repairs are not made. If during the Lease Term, any alteration, addition or change to the Premises is required by any government
entity as a direct or indirect result of Lessee's operation or use of the Premises, Lessee, at its sole expense, shall promptly make the same. If Lessee fails to make any repairs required to be made
by Lessee within thirty days after receipt of written notice of such condition from Lessor, Lessor shall have the right to make such repairs, and
Lessee shall reimburse Lessor for all costs thereof upon written demand. 

14.   AUCTIONS, SIGNS, LANDSCAPING

        14.01     Lessee
will not conduct or permit to be conducted any sale by auction on the Premises. All signs which are visible from the outside of any building in
the Project shall be subject to the written approval of the Lessor as to the placement, size, design, color and quality. Lessee shall comply with the terms and conditions regarding sign criteria set
forth in Exhibit D attached, or if no Exhibit D is attached, with such signage rules and regulations as Lessor shall adopt from time to time for the Project. Any signs not in conformity
with this Section 15.01 may be removed by Lessor at Lessee's expense. Lessee will not make any alterations or additions to the landscaping on the Project. 

15.   ENTRY BY LESSOR

        15.01     Lessee
will permit Lessor and Lessor's agents to enter the Premises at all reasonable times for the following purposes: making emergency repairs.  Lessor and Lessor's agents may enter the Premises upon reasonable notice to Lessee for
the following purposes: inspecting the Premises, including,
without limitation, environmental audits described in Section 7.03; making repairs or alterations to the building or roofs; to post notices of non responsibility; to show the Premises to
prospective tenants during the last six months of the Lease Term; to place upon the Project any usual or ordinary "for sale" or "for let" signs. Each such entry shall be without any rebate of
rents and without any liability to Lessee for any loss of occupation or quiet enjoyment of the Premises thereby occasioned. For each of the above purposes, Lessor will at all times have and retain a
key with which to unlock all the doors in, upon and about the Premises, excluding Lessees' vaults and safes and filing cabinets. Lessee will not alter any lock or install a new additional lock or any
bolt on any door of the Premises without the prior written consent of Lessor, which will not be unreasonably withheld. If Lessor gives its consent, such work shall be undertaken by a locksmith
approved by Lessor, at Lessee's sole cost, and Lessee will furnish Lessor with a key. Lessor retains the right to charge Lessee for restoring any altered doors to their condition prior to the
installation of the new or additional locks. 

16.   ABANDONMENT

        16.01     Lessee
will not vacate or abandon the Premises at any time during the Lease Term or permit the Premises to remain unoccupied for a period longer than
thirty (30) consecutive days. If Lessee abandons, vacates or surrenders the Premises, is dispossessed by process of law, or otherwise, any personal property belonging to Lessee left in
or about the Premises will, at the option of Lessor, be deemed abandoned and may be disposed of by Lessor, at Lessee's cost, in the manner provided for by the laws of the State of Arizona. 

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17.   DESTRUCTION

        17.01     If
the Premises are partially destroyed by fire or other casualty which is insured against under the insurance policy maintained by Lessor pursuant to
Section 12.01, and if the Premises can be repaired or restored substantially to their former condition under all applicable government laws and regulations within One hundred eighty
(180) working days from the date of such destruction at a cost not exceeding twenty-five percent (25%) of the total replacement cost of the Premises, this Lease will continue
in full force and effect. In such event, Lessor shall promptly commence restoring the Premises to their prior condition (except to the extent that Lessee is required to repair such damage pursuant to
Section 14.01). During the term of the repair and non-use of the Premises, Lessee shall not pay rent, additional rent or the fees for water and electric to the Premises.
Notwithstanding the foregoing, if one year or less remains in the Lease Term from and after the date of such destruction, Lessor or Lessee may terminate this Lease within thirty (30) days after
the occurrence of such destruction by delivering written notice of termination to the other party. 

        17.02     If
the Premises or the building of which the Premises are a part are damaged or destroyed and (a) such damage or destruction is not insured under
the insurance policy maintained by Lessor pursuant to Section 12.01 or (b) the Premises or building cannot be restored to their former condition under all applicable government laws and
regulations within ninety working days from the date of such destruction at a cost not exceeding twenty-five percent (25%) of the total replacement cost of the Premises or building,
as the case may be: 

        A.    This
Lease shall terminate as of the date of such damage or destruction, unless Lessor elects to keep this Lease in full force and effect by providing Lessee with written
notice of such election within thirty days after such damage or destruction occurs. In the event of such election by Lessor, Lessor shall promptly commence restoring the Premises to their prior
condition (except to the extent that Lessee is required to repair such damage pursuant to Section 14.01). If loss is due to negligence of Lessee then Lessee will remain bound
under this contract to continue to pay rent, additional rent, water or electric fees for the period of non-use of the Premises. 

        B.    Notwithstanding
subparagraph A of this Section 18.02, if neither Lessee nor any agent, employee, contractor or invitee of Lessee has caused such damage or
destruction, Lessee may elect to terminate this Lease by providing Lessor with written notice of such election within fifteen days after receipt of any notice from Lessor of its election to
continue the lease in effect. 

        17.03     Any
insurance proceeds received by Lessor because of the total or partial destruction of the Premises or the building in which the Premises are located
will be the sole property of Lessor, free from any claims of Lessee, and may be used by Lessor for whatever purposes Lessor may desire. Should Lessor elect or be required to repair and restore the
Premises to their former condition pursuant to Section 18.01, and neither Lessee nor any person in or about the Premises with the consent, expressed or implied, of Lessee has caused such damage
or destruction, there will be a proportional abatement in the amount of rent payable during the period of repair and restoration. 

18.   ASSIGNMENT, SUBLETTING AND TRANSFERS OF OWNERSHIP

        18.01     Lessee
will not, without Lessor's prior written consent, assign, sell, mortgage, encumber, convey, sublet or otherwise transfer all or any part of
Lessee's leasehold estate (collectively, "Transfer") or permit the Premises to be occupied by anyone other than Lessee and Lessee's employees. Lessee must supply Lessor with any and all documents
deemed necessary by Lessor to evaluate any proposed Transfer at least sixty (60) days in advance of the proposed Transfer date. 

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        18.02     Lessor
will not unreasonably withhold its consent except that such consent will not be granted if: (i) in the reasonable judgment of Lessor the
transferee lacks the necessary financial resources, business experience or credit worthiness to discharge the terms of the Lease; (ii) in the reasonable judgment of Lessor the transferee is of
a character or is engaged in a business or proposes a use which is not in keeping with the standards of Lessor for the Project; (iii) the portion of the Premises subject to the transfer is not
regular in shape with appropriate means of entering and exiting, including adherence to any local, county or other governmental codes, or is not otherwise suitable for the normal purposes associated
with such a transfer; (iv) Lessee is in default under this Lease or any other lease with Lessor; or (v) if transferee is engaged in a more hazardous business than Lessee. 

        18.03     In
the event Lessor consents to a Transfer, Lessee will pay Lessor 50% of the excess, if any, of the rent and other charges reserved in the Transfer over
the allocable portion of the rent and other charges hereunder for that portion of the Premises subject to the Transfer. Lessee will pay or cause the transferee to pay to Lessor this additional rent
together with the monthly installments of rent due. 

        18.04     Consent
to any Transfer which may be given by Lessor, or the acceptance of any rent, charges or other consideration by Lessor from Lessee or any third
party, will not constitute a waiver by Lessor of the provisions of this Lease or release Lessee from the full performance by it of the covenants stated herein; and any consent given by Lessor to any
Transfer will not relieve Lessee (or any transferee of Lessee) from the above requirements for obtaining the written consent of Lessor to any subsequent Transfer. 

        18.05     If
a default under this Lease should occur while the Premises or any part of the Premises are assigned, sublet or otherwise transferred, Lessor, in
addition to any other remedies provided for herein or by law, may at its option collect directly from the transferee all rent or other consideration due Lessee under the Transfer. Lessor may apply
these monies against any sums due to Lessor by Lessee; and Lessee authorizes and directs any transferee to make payments of rent or other consideration direct to Lessor upon receipt of notice from
Lessor. No direct collection by Lessor from any transferee should be construed to constitute a novation or a release of Lessee or any guarantor of Lessee from the further performance of its
obligations in connection with this Lease. 

        18.06     Notwithstanding the foregoing or anything contained herein, Lessee shall have the right to assign or otherwise transfer its
interest under this Lease to any "related entity." For the purposes of this section, a related entity shall be deemed to include a parent, subsidiary, any entity that acquires all or substantially all
of Lessee's assets or operations relating to this Lease, and the surviving entity of any merger or consolidation involving Lessee. Any assignment to a related entity shall not require the consent
approval of Lessor in order to be effective. However, Lessee will provide Lessor with thirty (30) days prior written notice of any such assignment.

19.   BREACH BY LESSEE

        19.01     Lessee
will be in breach of this Lease if at any time during the term of this Lease (and regardless of the pendency of any bankruptcy, reorganization,
receivership, insolvency or other proceedings in law, in equity or before any administrative tribunal which have or might have the effect of preventing Lessee from complying with the terms of this
Lease): 

        A.    Lessee
fails to make payment when due of any installment of Base Monthly Rent, Additional Rent, or of any sum herein specified to be paid by Lessee, and such failure of
payment is not cured within five (5) business days after such payment is due; or 

        B.    Lessee
vacates or abandons the Premises in violation of Section 17 or causes, permits or suffers a Transfer in violation of Section 19; or 

10

 

        C.    Lessee
violates any reasonable rule or regulation which Lessor has adopted hereunder, and which has been furnished to
Lessee, within thirty (30) days after Lessor's written notice to Lessee of such violation; or 

        D.    Lessee
fails to observe or perform any of its other covenants, agreements or obligations hereunder, and such failure is not cured within thirty
(30) days after Lessor's written notice to Lessee of such failure; or 

        E.    Lessee
becomes insolvent, makes a transfer in fraud to its creditors, makes a transfer for the benefit of its creditors, voluntarily files for bankruptcy, an involuntary
petition in bankruptcy is filed against Lessee that is not dismissed within sixty (60) days of filing, is adjudged bankrupt or insolvent in proceedings filed against Lessee, a receiver,
trustee, or custodian is appointed for all or substantially all of Lessee's assets, fails to pay its debts as they become due, convenes a meeting of all or a portion of its creditors, or performs any
acts of bankruptcy or insolvency, including the selling of its assets to pay creditors. 

20.   REMEDIES OF LESSOR

        20.01     In
the event Lessee breaches this Lease, Lessor shall have the following rights and remedies, each of which shall be cumulative and shall be in addition
and without prejudice to every other right or remedy given hereunder or now or hereafter existing at law, in equity or by statute, and all of which may be exercised concurrently, alternatively or
successively: 

        A.    The
right to enforce specific performance; 

        B.    The
right to receive and recover damages resulting from such breach or default; 

        C.    Without
curing the breach or default, the right to make any payment in which Lessee is in default in which event all expenses, costs, losses, damages and fees (including
without limitation attorneys' fees) suffered or incurred in so doing shall immediately constitute indebtedness due and owing from Lessee; 

        D.    The
right to terminate this Lease by written notice to Lessee, such termination to be without prejudice to the right to collect damages for previously existing defaults,
and any other loss, cost or expense incurred by Lessor. 

        E.    The
right to immediately re-enter the Premises and the right, at the option of Lessor upon such re-entry, to remove all persons and property
therefrom.; 

        F.     The
right to relet the Premises or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rental and upon
such terms and conditions as Lessor, in its discretion, may deem advisable, with the right to make alterations or repairs. Upon such reletting, the rents received by Lessor from such reletting shall
be applied first to the payment of any indebtedness other than rent due hereunder; second, to the payment of any costs and expenses of such reletting, and of such alterations and repairs; third, to
the payment of rent due and unpaid hereunder; and the residue if any, shall be held by Lessor and applied in payment of future rent as the same may become due and payable hereunder. If the rents
received from such reletting during any month are less than that to be paid during that month by Lessee hereunder, Lessee shall pay any such deficiency to Lessor. Such deficiency shall be calculated
and paid monthly.; and 

11

 

        G.    The
right to obtain the appointment of a receiver in any court of competent jurisdiction, and the receiver may take possession of the Premises and any personal property
belonging to the Lessee and used in the conduct of the business of the Lessee being carried on in the Premises. The entry or possession by said receiver of the Premises and said personal property
shall not constitute an eviction of the Lessee from the Premises or any portion thereof. Neither the application for the appointment of such receiver, nor the appointment of such receiver, shall be
construed as an election on Lessor's part to terminate this Lease unless a written notice of such intention is given to Lessee. 

        20.02     No
act or conduct of the Lessor, whether consisting of the acceptance of the keys to the property or otherwise, shall be deemed to be or constitute an
acceptance by Lessor of the surrender of the Premises by Lessee prior to the expiration of the term hereof, and such acceptance by Lessor of surrender by Lessee shall only result from and must be
evidenced by written acknowledgment of acceptance of surrender signed by Lessor. 

21.   ATTORNEYS' FEES/COLLECTION CHARGES

        21.01     In
the event of any legal action or proceeding between the parties hereto, reasonable attorneys' fees and expenses of the prevailing party will be added
to the judgment or award therein Should Lessor be named as defendant in any third party action brought against Lessee in connection with or arising out of Lessee's occupancy hereunder, Lessee will
hold harmless and defend Lessor against any liability and will pay to Lessor all its costs and expenses incurred in such suit, including actual attorneys' fees. 

22.   CONDEMNATION

        22.01     If
twenty-five percent (25%) or more of the Premises is taken for any public or quasi-public purpose by any lawful government power or
authority, by exercise of the right of appropriation, reverse condemnation, condemnation or eminent domain, or is sold to prevent such taking (collectively "Taking"), the Lessee or the Lessor may at
its option terminate this Lease as of the effective date of the Taking. Lessee will not assert any claim against the Lessor or the Taking authority for any compensation because of such Taking, and
Lessor will be entitled to receive the entire amount of any award without deduction for any estate of interest of Lessee. If less than twenty-five percent (25%) of the Premises is taken,
Lessor at its option may terminate this Lease. If Lessor does not so elect, Lessor will promptly proceed to restore the Premises to substantially its same condition prior to such partial Taking,
allowing for any reasonable effects of such Taking, and a proportionate allowance will be made to Lessee for the rent corresponding to the part of the Premises which, and to the time during which,
Lessee is deprived of the Premises on account of such Taking and restoration. 

23.   SALE BY LESSOR

        23.01     Upon
Lessor's sale or conveyance of the Project or the building of which the Premises are a part, Lessor
shall be released from any liability upon any of the covenants or conditions, expressed or implied, herein contained in favor of Lessee, and in such event Lessee agrees to look solely to the successor
in interest of Lessor. This Lease will not be affected by any such sale, and Lessee agrees to attorn to the purchaser or assignee. 

12

 

24.   NOTICES

        24.01     All
notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations under this Lease by
either party shall be in writing and shall be considered sufficiently given and served upon the other party two (2) days after being sent certified mail, return receipt requested, postage
prepaid and addressed as indicated on the first page of this Lease or as indicated in any subsequent notice of a change in address sent in such manner. 

25.   NO WAIVER

        25.01     The
failure of Lessor to insist on any one or more cases upon the strict performance of any term, covenant or condition of this Lease will not be
construed as a waiver of a subsequent breach of the same or any other covenant, term of condition; nor shall any delay or omission by Lessor to seek a remedy for any breach of this Lease be deemed a
waiver by Lessor of its remedies or rights with respect to such breach. 

26.   LESSEE'S INTENT

        26.01     If
Lessee intends to vacate the Premises at the end of the Lease Term, Lessee will give Lessor ninety
(90) days prior written notice of such intent. If Lessee remains in the Premises after the Lease Expiration date, whether or not Lessee has given such prior written
notice, such continuance of possession by Lessee will be deemed to be a month-to-month tenancy at the sufferance of Lessor terminable on thirty (30) days written notice
at any time by either party. All provisions of this Lease, except those pertaining to term and rent, will apply to the month-to-month tenancy. Lessee will pay Base Monthly Rent
in an amount equal to 150% of rent payable for the last full calendar month during the regular term. 

27.   DEFAULT OF LESSOR/LIMITATION OF LIABILITY

        27.01     In
the event of any default by Lessor hereunder, Lessee agrees to give notice of such default to Lessor (and if Lessee has received written notice of the
name and address of any lender or mortgagee holding any mortgage or deed of trust encumbering the Premises or building, to such lender or mortgagee) and to offer Lessor (and any such lender or
mortgagee) a reasonable opportunity to cure the default. In the event of any actual or alleged failure, breach or default hereunder by Lessor, Lessee's sole and exclusive remedy will be against
Lessor's interest in the Project, and no partner of Lessor will be sued, be subject to service of process, or have a judgment obtained against him in connection with any alleged breach or default, and
no writ of execution will be levied against the assets of any partner, shareholder or officer of Lessor. These covenants and agreements are enforceable by Lessor and also by any partner, shareholder
or office of Lessor. 

28.   SUBORDINATION

        28.01     Without
the execution, acknowledgment or delivery of any additional document by Lessee for the purpose of effecting a subordination, and at the election
of Lessor or any mortgagee with a lien on the Project or the building of which the Premises are a part, this Lease will be subject and subordinate at all times to the lien of any mortgage or deed of
trust which may now exist or hereafter be executed in any amount for which the Project or the building of which the Premises are a part is specified as security. In the event that any mortgage or deed
of trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, Lessee will, notwithstanding any subordination, attorn to and become the Lessee of the successor in interest to
Lessor, at the option of such successor in interest. Lessee covenants and agrees to execute and deliver, upon demand by Lessor and in the form requested by Lessor, any additional documents evidencing
the priority or subordination of this Lease with respect to any such lien or any such mortgage or deed of trust. 

13

 

29.   MISCELLANEOUS PROVISIONS

        29.01     Whenever
the singular number is used in this Lease and when required by the context, the same will include the plural, and the masculine gender will
include the feminine and neuter genders, and the word "person" will include corporation, firm, partnership or association. 

        29.02     If
there is more than one Lessee, the obligations imposed upon Lessee under this Lease will be joint and several. 

        29.03     The
headings or titles to paragraphs of this Lease are not a part of this Lease and will have no effect upon the construction or interpretation of any
part of this Lease. 

        29.04     This
instrument contains all of the agreements and conditions made between the parties to this Lease and may not be modified orally or in any manner
other than by a written agreement signed by all parties to this Lease. 

        29.05     Lessee
acknowledges that neither Lessor nor Lessor's agents have made any representation or warranty as to the suitability of the Premises for conducting
Lessee's business. Any agreements, warranties or representations not expressly contained herein will in no way bind either Lessor or Lessee, and Lessor and Lessee expressly waive all claims for
damages by reason of any statement, representation, warranty, promise or agreement, if any, not contained in this Lease. 

        29.06     Time
is of essence of each term and provision of this Lease. 

        29.07     Except
as otherwise expressly stated, each payment required to be made by Lessee is in addition to and not in substitution for other payments to be made
by Lessee. 

        29.08     Subject
to Paragraph 19, the terms and provisions of this Lease are binding upon and inure to the benefit of the heirs, executors, administrators,
successors and assigns of Lessor and Lessee. 

        29.09     All
covenants and agreements to be performed by Lessee under any of the terms of this Lease will be performed by Lessee at Lessee's sole cost and expense
and without any abatement of rent. 

        29.10     In
consideration of Lessor's covenants or conditions hereunder, Lessee hereby covenants and agrees not to disclose any terms, covenants or conditions of
this Lease to any other party without the prior written consent of Lessor. 

        29.11     This
Lease is governed by and construed in accordance with the laws of the State of Arizona, and venue of any suit will be in Maricopa County, Arizona. 

        29.12     If
any provision of this Lease is found to be unenforceable, all other provisions shall remain in full force and effect. 

        29.13     If
Lessee shall request Lessor's consent and Lessor shall fail or refuse to give such consent, Lessee shall not be entitled to any damages for any
withholding by Lessor of its consent; Lessee's sole remedy shall be an action for specific performance or injunction. 

        29.14     Lessor
has employed 
(                        N/A                 
       ) as its brokers in connection with the Lease and
shall be solely responsible for payment of a commission to its broker. Lessor and Lessee represent to each other that no other broker has been engaged in connection with this transaction and each
agrees to hold the other harmless against any claim for a broker's commission or finder's fee arising out of the acts of the party against whom the claim for payment is directed. 

14

 

30.   ACCEPTANCE AND DEPOSIT AGREEMENT

        30.01     This
Lease will be effective only after Lessee has received a copy fully executed by Lessor. Lessor and Lessee hereby agree that prior thereto Lessor
will be entitled to immediately endorse and cash Lessee's good faith rent check(s) accompanying this Lease. It is further agreed and understood that such action will not guarantee acceptance of this
Lease by Lessor, but, in the event Lessor does not accept this Lease, such deposits will be refunded in full to Lessee. 

31.   OPTION TO RENEW

        31.01     Lessee
shall have the option to lease the Premises for an additional period of 60 months at the end of the term of this Lease, under all the terms
and conditions of the initial Lease except Base Monthly Rent provided: 

        A.    That
Lessee shall have at all times faithfully and punctually performed each and all of its covenants and obligations under this Lease; 

        B.    That
Lessee shall give to Lessor written notice of its intention to exercise said option at least six (6) months prior to the expiration of the term of this Lease; 

        C.    Nationwide
Financial Solutions, Inc., is, and will continue to be, the principal Lessee and user of the Premises; and 

        D.    Rent
schedules shall be adjusted as follows: 

Total
Rent Year 1: $7,693.42.

Total Rent Year 2: $8,078.09.

Total Rent Year 3: $8,481.99.

Total Rent Year 4: $8,906.09.

Total Rent Year 5: $9,351.40 

32.   LEASE CONTENTS

        32.01     This Lease and all of the exhibits incorporated herein are intended to be construed as an integrated agreement. Except as specifically provided otherwise
in any exhibit incorporated herein, if any provisions contained in any exhibit hereto conflicts in any way with any provisions of this Lease, the provisions in this Lease shall prevail. All
negotiations, considerations, representations and understandings between the parties are incorporated herein and may be amended, modified or altered only by an agreement in writing signed by Lessor
and Lessee.

15

 

        IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease as of the day and year indicated by Lessor's execution date as written below. Individuals signing on behalf of Lessee
warrant that they have the authority to bind their principals. In the event that Lessee is a corporation, Lessee shall deliver to Lessor, concurrently with the execution and delivery of this Lease, a
certified copy of corporate resolutions adopted by Lessee authorizing said corporation to enter into and perform this Lease and authorizing the execution and delivery of the Lease on behalf of the
corporation by the parties executing and delivering this Lease. THIS LEASE, WHETHER OR NOT EXECUTED BY LESSEE, IS SUBJECT TO ACCEPTANCE AND EXECUTION BY LESSOR, ACTING ITSELF OR BY ITS AGENT.

 

	LESSOR:	 	BY	 	/s/  AMBER OCHELTREE      
	 	Date:	 	4/1/2004
	

 	
 	

Name:	
 	

Amber Ocheltree	
 	

 	
 	

 
	

 	
 	

Title:	
 	

Property Manager—Shalimar	
 	

 	
 	

 
	

 	
 	

 	
 	

 	
 	

 	
 	

 
	

LESSEE:	
 	

BY	
 	

/s/  DARREN R. DIERICH      
	
 	

Date:	
 	

4/1/2004
	

 	
 	

Name:	
 	

Darren R. Dierich	
 	

 	
 	

 
	

 	
 	

Title:	
 	

Title: Chief Financial Officer	
 	

 	
 	

 

	State of Arizona,	 	}	 	 	 	 
	County of Maricopa	 	}	 	ss	 	On 4/1/2004, before me, the undersigned, a Notary, in and for said state, personally appeared
	

 	
 	

 	
 	

 	
 	

	 	 	 	 	 	 	personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the president of Shalimar Offices, LLC, and Nationwide Financial Solutions, Inc.,
Arizona, corporations and acknowledged to me that such corporations, executed the within instrument pursuant to its bylaws or a resolution of its board of directors, and that the seal of affixed to the within instrument is the corporations seal of
said corporations.
	

 	
 	

 	
 	

 	
 	

WITNESS my hand and official seal.
	

 	
 	

 	
 	

 	
 	

Notary's Signature
	

 	
 	

 	
 	

 	
 	

/s/  ANNA PETERSON      

	

Corporate Acknowledgment	
 	

16

  

EXHIBIT A

COUNTRY CLUB WAY PLAT  

17

 
EXHIBIT A-1

COUNTRY CLUB WAY  

18

 
EXHIBIT B

NATIONWIDE FINANCIAL SOLUTIONS, INC.  

	1.
	All
trades working in the Nationwide Financial Solutions, Inc., must be State of Arizona licensed contractors. Prior to commencing work for a Lessee, the general contractor must
provide the Lessor with a copy of his Workers Compensation and General Liability Insurance certificate with Nationwide Financial Solutions, Inc. and Shalimar Offices, LLC listed as additional
insured.

	

	In
the event Lessee acts as the builder, he must obtain all necessary permits from all governing agencies as well as Workers Compensation Insurance in
accordance with the City of Tempe Building Department requirements. A copy of this insurance certificate must be submitted to Lessor's office before any work may commence. Any contractor (plumbing,
electrical, mechanical, etc.) doing any remodeling work for the first time in Nationwide Financial Solutions, Inc., must also provide the Lessor with a copy of his current Workers Compensation
and General Liability Insurance certificate with Shalimar Offices, LLC, listed as additional insured.

	2.
	The
"contractor" is responsible to clean up at the end of each work day any common areas of Nationwide Financial Solutions, Inc. that have been soiled as a result of his work.

	3.
	No
contractor will be allowed to store any construction material in the common areas or on the outside of the building.

	4.
	Nationwide
Financial Solutions, Inc.'s, garbage dumpsters may not be used for the disposal of construction debris. $50.00 assessment to tenant for each violation.

	5.
	No
jack hammering of concrete within the buildings will be allowed after 9:30 a.m. NO EXCEPTIONS.

	6.
	No
Romex cable is allowed to be used in this project. All new electrical wiring must be in metal conduit, which has been approved for use by the City Building Department.

	7.
	The
Lessor's office must be notified in writing at least 24 hours in advance of requiring the shutting down of the fire sprinkler
system—(602-799-2669).

	8.
	No
roof penetrations will be allowed without prior written approval from the Lessor's office.

	9.
	Any
alterations made to the suite shall be approved by Lessor prior to commencement of work.

	10.
	Any
window coverings must be beige or off white in color.

	11.
	Lessee
must abide by the CCR's and Bylaws of the Country Club Way Office Condominium Association.

	12.
	Schedule
of Rents: 

Total
Rent Per Month Year 1: $9,045.33.

Total Rent Per Month Year 2: $9,913.42.

Total Rent Per Month Year 3: $10,868.32.

Total Rent Per Month Year 4: $11,918.71.

Total Rent Per Month Year 5: $13,074.14 with a final payment of $13,073.84. 

INITIALS: 

LESSOR:                        

LESSEE:                        

19

 
EXHIBIT C

NATIONWIDE FINANCIAL SOLUTIONS, INC.  

	1.
	Identification of Hazardous Materials. For purposes of Section 7 of the Lease, the Hazardous Materials (as defined in
Section 7.04 of the Lease) which may be kept, stored, used or produced on the Premises by Lessee consist of the following:

	2.
	Additional Information. Lessee shall provide Lessor with copies of any Material Safety Data Sheets, Best Practices Management Plans
(including any emergency response and secondary containment plans) with other environmental materials which Lessee is required by law to adopt, maintain or file in connection with Lessee's operations
on the Premises and the names and addresses of all vendors or contractors recycling or disposing of any Hazardous Materials kept, stored, used or produced on the Premises by Lessee.

	3.
	Entry by Lessor. Lessor's right of entry under Section 16 of the Lease shall include the right to enter for the purpose of
confirming Lessee's compliance with Section 7 of the Lease. 

INITIALS: 

LESSOR:                        

LESSEE:                        

20

 
 
 

EXHIBIT D
  NATIONWIDE FINANCIAL SOLUTIONS, INC.
  SIGNAGE    
    

	PROJECT ADDRESS:	 	3231 S. Country Club Way
	

 	
 	

Tempe, Arizona 85224
	
TYPE:	
 	

As per CCR's and City of Tempe sign codes
	
COLOR:	
 	

As per CCR's
	
LETTER STYLE:	
 	
Optional. To be approved by Landlord and consistent with CCR's.
	
SIZE RESTRICTIONS:	
 	
As per CCR's (Ordinance requirement)
	
WINDOW SIGNAGE:	
 	

As detailed in CCR's
	
APPROVAL:	
 	

All signage must be approved in writing by both the Landlord and the City of Tempe prior to the placement of order with Tenants sign company.

INITIALS:

LESSOR:                        

LESSEE:                        

21

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SHALIMAR OFFICES, LLC NATIONWIDE FINANCIAL SOLUTIONS, INC., LEASE

EXHIBIT D NATIONWIDE FINANCIAL SOLUTIONS, INC. SIGNAGEQuickLinks
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Exhibit 10.05

  

 
 

AGREEMENT
  CONCERNING THE EXCHANGE OF SECURITIES
  BY AND AMONG
  NB ACQUISITIONS, INC.
  AND
  NATIONAL INTEREST SOLUTIONS, INC. AND
  THE SECURITY HOLDERS OF NATIONAL INTEREST SOLUTIONS,
 INC.    
    

   INDEX  

	 
	 	 
	 
	 	Page

	

ARTICLE I—EXCHANGE OF SECURITIES	
 	

1
	1.1	 	—	Issuance of Securities	 	1
	1.2	 	—	Corporate Action by NB	 	1
	1.3	 	—	Exemption from Registration	 	1
	

ARTICLE II—REPRESENTATIONS AND WARRANTIES OF NIS	
 	

2
	2.1	 	—	Organization	 	2
	2.2	 	—	Capital	 	2
	2.3	 	—	Subsidiaries	 	2
	2.4	 	—	Directors and Officers	 	2
	2.5	 	—	Financial Statements	 	2
	2.6	 	—	Absence of Changes	 	2
	2.7	 	—	Absence of Undisclosed Liabilities	 	2
	2.8	 	—	Tax Returns	 	2
	2.9	 	—	Investigation of Financial Condition	 	2
	2.10	 	—	Proprietary Rights	 	2
	2.11	 	—	Compliance with Laws	 	2
	2.12	 	—	Litigation	 	2
	2.13	 	—	Authority	 	3
	2.14	 	—	Ability to Carry Out Obligations	 	3
	2.15	 	—	Full Disclosure	 	3
	2.16	 	—	Assets	 	3
	2.17	 	—	Material Contracts	 	3
	2.18	 	—	Indemnification	 	3
	2.19	 	—	Criminal or Civil Acts	 	3
	2.20	 	—	Restricted Securities	 	3
	

ARTICLE III—REPRESENTATIONS AND WARRANTIES OF NB.	
 	

4
	3.1	 	—	Organization	 	4
	3.2	 	—	Capital	 	4
	3.3	 	—	Subsidiaries	 	4
	3.4	 	—	Directors and Officers	 	4
	3.5	 	—	Financial Statements	 	4
	3.6	 	—	Absence of Changes	 	4
	3.7	 	—	Absence of Undisclosed Liabilities	 	4
	3.8	 	—	Tax Returns	 	4
	3.9	 	—	Investigation of Financial Condition	 	4
	3.10	 	—	Proprietary Rights	 	4
	3.11	 	—	Compliance with Laws	 	4
	3.12	 	—	Litigation	 	5
	3.13	 	—	Authority	 	5
	3.14	 	—	Ability to Carry Out Obligations	 	5
	3.15	 	—	Full Disclosure	 	5
	3.16	 	—	Assets	 	5
	3.17	 	—	Material Contracts	 	5
	3.18	 	—	Indemnification	 	5
	3.19	 	—	Criminal or Civil Acts	 	5
	 	 	 	 	 	 

ii

 

	

ARTICLE IV—COVENANTS PRIOR TO THE CLOSING DATE	
 	

5
	4.1	 	—	Investigative Rights	 	5
	4.2	 	—	Conduct of Business	 	6
	

ARTICLE V —CONDITIONS PRECEDENT TO NB'S PERFORMANCE	
 	

6
	5.1	 	—	Conditions	 	6
	5.2	 	—	Accuracy of Representations	 	6
	5.3	 	—	Performance	 	6
	5.4	 	—	Absence of Litigation	 	6
	5.5	 	—	Officer's Certificate	 	6
	5.6	 	—	Corporate Action	 	6
	

ARTICLE VI—CONDITIONS PRECEDENT TO NIS'S PERFORMANCE	
 	

6
	6.1	 	—	Conditions	 	6
	6.2	 	—	Accuracy of Representations	 	7
	6.3	 	—	Performance	 	7
	6.4	 	—	Absence of Litigation	 	7
	6.5	 	—	Officer's Certificate	 	7
	6.6	 	—	Directors of NB.	 	7
	6.7	 	—	Officers of NB.	 	7
	6.8	 	—	Corporate Action	 	7
	

ARTICLE VII—CLOSING	
 	

7
	7.1	 	—	Closing	 	7
	

ARTICLE VIII—MISCELLANEOUS	
 	

7
	8.1	 	—	Captions and Headings	 	7
	8.2	 	—	No Oral Change	 	8
	8.3	 	—	Non-Waiver	 	8
	8.4	 	—	Time of Essence	 	8
	8.5	 	—	Entire Agreement	 	8
	8.6	 	—	Choice of Law	 	8
	8.7	 	—	Counterparts	 	8
	8.8	 	—	Notices	 	8
	8.9	 	—	Binding Effect	 	8
	8.10	 	—	Mutual Cooperation	 	8
	8.11	 	—	Finders	 	8
	8.12	 	—	Announcements	 	8
	8.13	 	—	Expenses	 	8
	8.14	 	—	Survival of Representations and Warrantiesp	 	8
	8.15	 	—	Exhibits	 	9
	8.16	 	—	Legal Counsel	 	9
	 	 	 	Signatures	 	9

EXHIBITS  

	Allocation of Securities	 	Exhibit 1.1
	Subscription Agreement	 	Exhibit 1.2
	Financial Statements of NIS	 	Exhibit 2.5
	Financial Statements of NB	 	Exhibit 3.5

iii

AGREEMENT  

        AGREEMENT made this    day of March, 2004, by and between NB ACQUISITIONS, INC., a Nevada corporation ("NB"), NATIONAL INTEREST
SOLUTIONS, INC., an Arizona corporation ("NIS") and the security holders of NIS (the "NIS Security Holders") who are listed on Exhibit 1.1 hereto and have executed Subscription
Agreements in the form attached in Exhibit 1.2, hereto. 

        WHEREAS,
NB desires to acquire all of the issued and outstanding common stock of NIS from the NIS Security Holders in exchange for 9,000,000 newly issued unregistered shares of common
stock of NB; 

        WHEREAS,
NIS desires to assist NB in acquiring all of the issued and outstanding common stock of NIS pursuant to the terms of this Agreement; and 

        WHEREAS,
all of the NIS Security Holders, by execution of Exhibit 1.2 hereto, agree to exchange all 100,000 shares of their outstanding common stock for 9,000,000 common shares of
NB. 

        NOW,
THEREFORE, in consideration of the mutual promises, covenants and representations contained herein, THE PARTIES HERETO AGREE AS FOLLOWS: 

ARTICLE I

Exchange of Securities  

        1.1   Issuance of Securities. Subject to the terms and conditions of this Agreement, NB agrees to issue and exchange 9,000,000
unregistered shares of its $.0001 par value common stock (the "NB Shares") for all 100,000 shares of the no par value common stock of NIS (the "NIS Shares") held by the NIS Security Holders on the
closing date of the Agreement (the "Closing Date"). The NB shares include an aggregate of up to 750,000 shares issuable to Pursuit Venture Group, LLC ("Pursuit") upon conversion of promissory notes in
the aggregate amount of up to $750,000 issued by NIS to Pursuit. If the aggregate amounts of the promissory notes are less than $750,000, then the number of NB shares will be reduced accordingly. All
NB common stock will be issued directly to the NIS Security Holders or to Pursuit on the Closing Date, pursuant to the schedule set forth in Exhibit 1.1. 

        1.2   Corporate Action by NB. Prior to the Closing Date, NB will change its name to Nationwide Financial Solutions, Inc.
Accordingly, following the issuance of 9,000,000 shares of NB to the NIS Security Holders and Pursuit, the ownership of NB shall be as follows: 

	Shares held by NB public stockholders shares prior to the Closing Date	 	72,783 shares
	Shares held by NB principal stockholders(1)	 	927,245 shares
	Shares issuable or reserved for issuance to Pursuit upon conversion of Pursuit's promissory notes(2)	 	750,000 shares
	Shares issuable to the NIS Security Holders	 	8,249,972 shares
	 	 	

	TOTAL	 	10,000,000 shares

	(1)
	Represents
811,339 shares held by William Luke and 115,906 shares held by William L. Mullins.

	(2)
	Assumes
an aggregate of 750,000 shares issuable upon conversion of $750,000 of promissory notes held by Pursuit. Any such shares not required for conversion will be retained as
unissued common stock. NB has agreed to register the 750,000 shares with Securities and Exchange Commission within 45 days from the Closing Date. 

        1.3   Exemption from Registration. The parties hereto intend that all NB common stock to be issued to the NIS Security Holders
shall be exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act"), pursuant to Section 4(2) of the Act and the rules and regulations promulgated
thereunder. In furtherance thereof, each of the NIS Security Holders will execute and deliver to NB on the Closing Date a copy of the Subscription Agreement set forth in Exhibit 1.2 hereto. 

 

ARTICLE II

Representations and Warranties of NIS  

        NIS hereby represents and warrants to NB that: 

        2.1   Organization. NIS is a corporation duly organized, validly existing and in good standing under the laws of Arizona, has
all necessary corporate powers to own its properties and to carry on its business as now owned and operated by it, and is duly qualified to do business and is in good standing in each of the states
where its business requires qualification. 

        2.2   Capital. The authorized capital stock of NIS consists of 100,000 authorized shares of no par value common stock of which
100,000 shares are outstanding. There are no shares of preferred stock authorized or outstanding. All of the outstanding common stock of NIS is duly and validly issued, fully paid and nonassessable.
There are no outstanding subscriptions, options, rights, warrants, debentures, instruments, convertible securities or other agreements or commitments obligating NIS to issue or to transfer from
treasury any additional shares of its capital stock of any class. 

        2.3   Subsidiaries. NIS does not have any subsidiaries or own any interest in any other enterprise. 

        2.4   Directors and Officers. The names and titles of the directors and officers of NIS are as follows: Stephen Luke, Chief
Executive Officer, President and Director; and Darren Dierich, Chief Financial Officer, Secretary and Director. 

        2.5   Financial Statements. Exhibit 2.5 hereto consists of the unaudited financial statements of NIS for the year ended
December 31, 2003 (the "NIS Financial Statements"). The NIS Financial Statements have been prepared in accordance with generally accepted accounting principles and practices consistently
followed by NIS throughout the period indicated, and fairly present the financial position of NIS as of the date of the balance sheets included in the NIS Financial Statements and the results of
operations for the period indicated. 

        2.6   Absence of Changes. Since December 31, 2003, there has not been any material change in the financial condition or
operations of NIS, except as contemplated by this Agreement. 

        2.7   Absence of Undisclosed Liabilities. As of December 31, 2003, NIS did not have any material debt, liability or
obligation of any nature, whether accrued, absolute, contingent or otherwise, and whether due or to become due, that was not reflected in the NIS Financial Statements. 

        2.8   Tax Returns. NIS has filed all federal, state and local tax returns required by law and has paid all taxes, assessments
and penalties due and payable. The provisions for taxes, if any, reflected in Exhibit 2.5 are adequate for the periods indicated. There are no present disputes as to taxes of any nature payable
by NIS. 

        2.9   Investigation of Financial Condition. Without in any manner reducing or otherwise mitigating the representations
contained herein, NB, its legal counsel and accountants shall have the opportunity to meet with NIS's accountants and attorneys to discuss the financial condition of NIS. NIS shall make available to
NB all books and records of NIS. 

        2.10 Proprietary Rights. NIS owns all necessary trademarks, service marks, trade names, copyrights, patents and proprietary
information necessary to conduct its business. 

        2.11 Compliance with Laws. NIS has complied with, and is not in violation of, applicable federal, state or local statutes,
laws and regulations, including federal and state securities laws. 

2

 

        2.12 Litigation. NIS is not a defendant in any suit, action, arbitration or legal, administrative or other proceeding, or
governmental investigation which is pending or, to the best knowledge of NIS, threatened against or affecting NIS or its business, assets or financial condition. NIS is not in default with respect to
any order, writ, injunction or decree of any federal, state, local or foreign court, department, agency or instrumentality applicable to it. NIS is not engaged in any material litigation to recover
monies due to it. 

        2.13 Authority. The Board of Directors of NIS has authorized the execution of this Agreement and the consummation of the
transactions contemplated herein, and NIS has full power and authority to execute, deliver and perform this Agreement, and this Agreement is a legal, valid and binding obligation of NIS and is
enforceable in accordance with its terms and conditions. By execution of Exhibit 1.2, all of the NIS Security Holders have agreed to and have approved the terms of this Agreement. 

        2.14 Ability to Carry Out Obligations. The execution and delivery of this Agreement by NIS and the performance by NIS of its
obligations hereunder in the time and manner contemplated will not cause, constitute or conflict with or result in (a) any breach or violation of any of the provisions of or constitute a
default under any license, indenture, mortgage, instrument, article of incorporation, bylaw, or other agreement or instrument to which NIS is a party, or by which it may be bound, nor will any
consents or authorizations of any party other than those hereto be required, (b) an event that would permit any party to any agreement or instrument to terminate it or to accelerate the
maturity of any indebtedness or other obligation of NIS, or (c) an event that would result in the creation or imposition of any lien, charge or encumbrance on any asset of NIS. 

        2.15 Full Disclosure. None of the representations and warranties made by NIS herein or in any exhibit, certificate or
memorandum furnished or to be furnished by NIS, or on its behalf, contains or will contain any untrue statement of material fact or omit any material fact the omission of which would be misleading. 

        2.16 Assets. NIS's assets are fully included in Exhibit 2.5 and are not subject to any claims or encumbrances except
as indicated in Exhibit 2.5 

        2.17 Material Contracts. NIS does not have any material contracts. 

        2.18 Indemnification. NIS agrees to indemnify, defend and hold NB harmless against and in respect of any and all claims,
demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties and reasonable attorney fees, that it shall incur or suffer, which arise
out of, or result from (i) any breach by NIS in performing any of its covenants or agreements under this Agreement or in any schedule, certificate, exhibit or other instrument furnished or to
be furnished by NIS under this Agreement or (ii) any untrue statement made by NIS in this Agreement. 

        2.19 Criminal or Civil Acts. For the period of five years prior to the execution of this Agreement, no executive
officer, director or principal stockholder of NIS has been convicted of a felony crime, filed for personal bankruptcy, been the subject of a Commission or NASD judgment or decree, or is currently the
subject to any investigation in connection with a felony crime or Commission or NASD proceeding. 

        2.20 Restricted Securities. NIS and the NIS Security Holders, by execution of this Agreement and of Exhibit 1.2,
acknowledge that all of the NB Shares and options to be issued by NB will be restricted securities and none of such securities may be sold or publicly traded except in accordance with the provisions
of the Act. 

3

 
ARTICLE III

Representations and Warranties of NB  

        NB represents and warrants to NIS that: 

        3.1   Organization. NB is a corporation duly organized, validly existing and in good standing under the laws of Nevada, has all
necessary corporate powers to carry on its business, and is duly qualified to do business and is in good standing in each of the states where its business requires qualification. 

        3.2   Capital. The authorized capital stock of NB on the Closing Date will consist of 60,000,000 shares of $.0001 par value
common stock and 10,000,000 shares of $.0001 par value preferred stock, of which 10,000,000 shares of common stock (less any shares reserved for issuance under Pursuit's promissory notes) will be
issued and outstanding on the Closing Date and no shares of preferred stock will be outstanding. All of NB's outstanding securities are duly and validly issued, fully paid and nonassessable. There are
no outstanding subscriptions, options, rights, warrants, debentures, instruments, convertible securities or other agreements or commitments obligating NB to issue or to transfer from treasury any
additional shares of its capital stock of any class except 1,000,028 Class A, 1,000,028 Class B, 1,000,028 Class C, 1,000,028 Class D, 1,000,028 Class E and
1,000,028 Class F common stock purchase warrants exercisable at any time until December 31, 2004, December 31, 2004, June 30, 2005, June 30, 2005,
December 31, 2007 and December 31, 2007, respectively, to purchase common stock of NB at $2.00, $2.00, $4.00, $4.00, $6.00 and $6.00 per share, respectively. 

        3.3   Subsidiaries. NB has no subsidiaries. 

        3.4   Directors and Officers. The names and titles of the directors and officers of NB are as follows: Jack D. Kelley,
President and Director; Derold L. Kelley, Vice President and Treasurer; and James A. Eller, Secretary. 

        3.5   Financial Statements. Exhibit 3.5 hereto consists of the audited financial statements of NB for the year ended
December 31, 2003 (the "NB Financial Statements"). The NB Financial Statements have been prepared in accordance with generally accepted accounting principles and practices consistently followed
by NB throughout the period indicated, and fairly present the financial position of NB as of the date of the balance sheets included in the NB Financial Statements and the results of operations for
the period indicated. 

        3.6   Absence of Changes. Since December 31, 2003, there has not been any material change in the financial condition or
operations of NB, except as contemplated by this Agreement. 

        3.7   Absence of Undisclosed Liabilities. As of December 31, 2003, NB did not have any material debt, liability or
obligation of any nature, whether accrued, absolute, contingent or otherwise, and whether due or to become due, that was not reflected in the NB Financial Statements. 

        3.8   Tax Returns. Within the times and in the manner prescribed by law, NB has filed all federal, state and local tax returns
required by law and has paid all taxes, assessments and penalties due and payable. 

        3.9   Investigation of Financial Condition. Without in any manner reducing or otherwise mitigating the representations
contained herein, NIS, its legal counsel and accountants shall have the opportunity to meet with NB's accountants and attorneys to discuss the financial condition of NB. NB shall make available to NIS
all books and records of NB. 

        3.10 Proprietary Rights. NB does not have any patents, trademarks, service marks, trade names or copyrights. 

4

 

        3.11 Compliance with Laws. NB has complied with, and is not in violation of, applicable federal, state or local statutes,
laws or regulations including federal and state securities laws. NB is current with all filings required by the Securities and Exchange Commission and, to its best knowledge, all the information set
forth in such filings is materially accurate and not omissive. 

        3.12 Litigation. NB is not a defendant in any suit, action, arbitration, or legal, administrative or other proceeding, or
governmental investigation which is pending or, to the best knowledge of NB, threatened against or affecting NB or its business, assets or financial condition. NB is not in default with respect to any
order, writ, injunction or decree of any federal, state, local or foreign court, department, agency or instrumentality applicable to it. NB is not engaged in any material litigation to recover monies
due to it. 

        3.13 Authority. The Board of Directors of NB has authorized the execution of this Agreement and the transactions contemplated
herein, and NB has full power and authority to execute, deliver and perform this Agreement, and this Agreement is the legal, valid and binding obligation of NB, and is enforceable in accordance with
its terms and conditions. 

        3.14 Ability to Carry Out Obligations. The execution and delivery of this Agreement by NB and the performance by NB of its
obligations hereunder will not cause, constitute or conflict with or result in (a) any breach or violation of any of the provisions of or constitute a default under any license, indenture,
mortgage, instrument, article of incorporation, bylaw or other agreement or instrument to which NB is a party, or by which it may be bound, nor will any consents or authorization of any party other
than those hereto be required, (b) an event that would permit any party to any agreement or instrument to terminate it or to accelerate the maturity of any indebtedness or other obligation of
NB, or (c) an event that would result in the creation or imposition of any lien, charge or encumbrance on any asset of NB. 

        3.15 Full Disclosure. None of the representations and warranties made by NB herein, or in any exhibit, certificate or
memorandum furnished or to be furnished by NB or on its behalf, contains or will contain any untrue statement of material fact or omit any material fact the omission of which would be misleading. 

        3.16 Assets. On the Closing Date, NB has no assets or liabilities. 

        3.17 Material Contracts. NB has no material contracts. 

        3.18 Indemnification. NB agrees to indemnify, defend and hold NIS harmless against and in respect of any and all claims,
demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties, and reasonable attorney fees, that it shall incur or suffer, which
arise out of, or result from (i) any breach by NB in performing any of its covenants or agreements in this Agreement or in any schedule, certificate, exhibit or other instrument furnished or to
be furnished by NB under this Agreement, or (ii) any untrue statement made by NB in this Agreement. 

        3.19 Criminal or Civil Acts. For a period of five years prior to the execution of this Agreement, no executive
officer, director or principal stockholder of NB has been convicted of a felony crime, filed for personal bankruptcy, been the subject of a Commission or NASD judgment or decree, or is currently the
subject to an investigation in connection with any felony crime or Commission or NASD proceeding. 

5

 

ARTICLE IV

Covenants Prior to the Closing Date  

        4.1   Investigative Rights. Prior to the Closing Date, each party shall provide to the other party, and such other party's
counsel, accountants, auditors and other authorized representatives, full access during normal business hours and upon reasonable advance written notice to all of each party's properties,
books, contracts, commitments and records for the purpose of examining the same. Each party shall furnish the other party with all information concerning each party's affairs as the other party may
reasonably request. 

        4.2   Conduct of Business. Prior to the Closing Date, each party shall conduct its business in the normal course and shall not
sell, pledge or assign any assets without the prior written approval of the other party, except in the normal course of business. Neither party shall amend its Certificate or Articles of Incorporation
or Bylaws (except as may be described in this Agreement), declare dividends, redeem or sell stock or other securities, incur additional or newly-funded liabilities, acquire or dispose of fixed assets,
change employment terms, enter into any material or long-term contract, guarantee obligations of any third party, settle or discharge any balance sheet receivable for less than its stated
amount, pay more on any liability than its stated amount, or enter into any other transaction other than in the normal course of business. Neither party shall enter into negotiations with any third
party or complete any transaction with a third party involving the sale of any of its assets or the exchange of any of its common stock. 

ARTICLE V

Conditions Precedent to NB's Performance  

        5.1   Conditions. NB's obligations hereunder shall be subject to the satisfaction at or before the Closing of all the
conditions set forth in this Article V. NB may waive any or all of these conditions in whole or in part without prior notice; provided, however, that no such waiver of a condition shall
constitute a waiver by NB of any other condition of or any of NB's other rights or remedies, at law or in equity, if NIS shall be in default of any of its representations, warranties or covenants
under this Agreement. 

        5.2   Accuracy of Representations. Except as otherwise permitted by this Agreement, all representations and warranties by NIS
in this Agreement or in any written statement that shall be delivered to NB by NIS under this Agreement shall be true and accurate on and as of the Closing Date as though made at that time. 

        5.3   Performance. NIS shall have performed, satisfied and complied with all covenants, agreements and conditions required by
this Agreement to be performed or complied with by it on or before the Closing Date. 

        5.4   Absence of Litigation. No action, suit or proceeding before any court or any governmental body or authority, pertaining
to the transaction contemplated by this Agreement or to its consummation, shall have been instituted or threatened against NIS on or before the Closing Date. 

        5.5   Officer's Certificate. NIS shall have delivered to NB a certificate dated the Closing Date signed by the Chief Executive
Officer of NIS certifying that each of the conditions specified in this Article has been fulfilled and that all of the representations set forth in Article II are true and correct as of
the Closing Date. 

        5.6   Corporate Action. NIS shall have obtained the approval of the NIS Security Holders for the transaction contemplated by
this Agreement. 

6

 

ARTICLE VI

Conditions Precedent to NIS's Performance  

        6.1   Conditions. NIS's obligations hereunder shall be subject to the satisfaction at or before the Closing of all the
conditions set forth in this Article VI. NIS may waive any or all of these conditions in whole or in part without prior notice; provided, however, that no such waiver of a condition shall
constitute a waiver by NIS of any other condition of or any of NIS's rights or remedies, at law or in equity, if NB shall be in default of any of its representations, warranties or covenants under
this Agreement. 

        6.2   Accuracy of Representations. Except as otherwise permitted by this Agreement, all representations and warranties by NB in
this Agreement or in any written statement that shall be delivered to NIS by NB under this Agreement shall be true and accurate on and as of the Closing Date as though made at that time. 

        6.3   Performance. NB shall have performed, satisfied and complied with all covenants, agreements and conditions required by
this Agreement to be performed or complied with by it on or before the Closing Date. 

        6.4   Absence of Litigation. No action, suit or proceeding before any court or any governmental body or authority, pertaining
to the transaction contemplated by this Agreement or to its consummation, shall have been instituted or threatened against NB on or before the Closing Date. 

        6.5   Officer's Certificate. NB shall have delivered to NIS a certificate dated the Closing Date signed by the Chief Executive
Officer of NB certifying that each of the conditions specified in this Article has been fulfilled and that all of the representations set forth in Article III are true and correct as of
the Closing Date. 

        6.6   Directors of NB. On the Closing Date, NB's directors shall elect the current directors of NIS to NB's Board of Directors
and shall themselves then resign as directors. 

        6.7   Officers of NB. On the Closing Date, the newly constituted Board of Directors of NB shall elect such officers of NB as
they shall determine. 

        6.8   Corporate Action. On or before the Closing Date, NB will take the corporate action described in Section 1.2,
above. 

ARTICLE VII

Closing  

        7.1   Closing. The Closing of this Agreement shall be held at the offices of Gary A. Agron, at any mutually agreeable time and
date (the "Closing Date") prior to March 31, 2004, unless extended by mutual agreement. At the Closing: 

	(a)
	NIS
shall deliver to NB copies of Exhibit 1.2 executed by all of the NIS Security Holders together with certificates representing all outstanding NIS securities duly endorsed
to NB;

	(b)
	NB
shall deliver to the NIS Security Holders an aggregate of 9,000,000 shares of its common stock pursuant to the computations set forth in Exhibit 1.1 hereto;

	(c)
	NB
shall deliver (i) the officer's certificate described in Section 6.5 and (ii) a signed consent and/or minutes of its directors approving this Agreement and
each matter to be approved under this Agreement;

	(d)
	NIS
shall deliver (i) the officer's certificate described in Section 5.5 and (ii) a signed consent and/or minutes of its shareholders and directors approving this
Agreement and each matter to be approved under this Agreement. 

7

 

ARTICLE VIII

Miscellaneous  

        8.1   Captions and Headings. The article and paragraph headings throughout this Agreement are for convenience and reference
only and shall not define, limit or add to the meaning of any provision of this Agreement. 

        8.2   No Oral Change. This Agreement and any provision hereof may not be waived, changed, modified or discharged orally, but
only by an agreement in writing signed by the party against whom enforcement of any such waiver, change, modification or discharge is sought. 

        8.3   Non-Waiver. The failure of any party to insist in any one or more cases upon the performance of any of the
provisions, covenants or conditions of this Agreement or to exercise any option herein contained shall not be construed as a waiver or relinquishment for the future of any such provisions, covenants
or conditions. No waiver by any party of one breach by another party shall be construed as a waiver with respect to any other subsequent breach. 

        8.4   Time of Essence. Time is of the essence of this Agreement and of each and every provision hereof. 

        8.5   Entire Agreement. This Agreement contains the entire Agreement and understanding between the parties hereto and
supersedes all prior agreements and understandings. 

        8.6   Choice of Law. This Agreement and its application shall be governed by the laws of the state of Arizona. 

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

        8.8   Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be
deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the third day after mailing if mailed to the party to whom notice is to be
given, by first class mail, registered or certified, postage prepaid, and properly addressed as follows: 

	NB:	 	NB Acquisitions, Inc.

3410 W. Glendale Ave., Suite D

Phoenix, AZ 85051

Attn: Jack D. Kelley, President
	

NIS:	
 	

National Interest Solutions, Inc.

2120 West Guadalupe Road, Suite 13

Mesa, AZ 85202

Attn: Stephen Luke, Chief Executive Officer

        8.9   Binding Effect. This Agreement shall inure to and be binding upon the heirs, executors, personal representatives,
successors and assigns of each of the parties to this Agreement.

 

        8.10 Mutual Cooperation. The parties hereto shall cooperate with each other to achieve the purpose of this Agreement and
shall execute such other and further documents and take such other and further actions as may be necessary or convenient to effect the transaction described herein.

        8.11 Finders. There are no finders in connection with this transaction.

 

        8.12 Announcements. The parties will consult and cooperate with each other as to the timing and content of any public
announcements regarding this Agreement.

8

 

        8.13 Expenses. Each party will bear their own expenses incurred in connection with this Agreement.

 

        8.14 Survival of Representations and Warranties. The representations, warranties, covenants and agreements of the parties set
forth in this Agreement or in any instrument, certificate, opinion or other writing providing for in it, shall survive the Closing.

 

        8.15 Exhibits. As of the execution hereof, the parties have provided each other with the Exhibits described herein. Any
material changes to the Exhibits shall be immediately disclosed to the other party.

 

        8.16 Legal Counsel. Each of the parties has been represented by its own legal counsel.

 

        In witness whereof, the parties have executed this Agreement on the date indicated above.

 

	
NB ACQUISITIONS, INC.	
 	
NATIONAL INTEREST SOLUTIONS, INC.
	

By:	
 	

/s/  JACK D. KELLEY      
 Jack D. Kelley, President	
 	

By:	
 	

/s/  STEPHEN LUKE      
 Stephen Luke, Chief Executive Officer

9

EXHIBIT 1.1  

SCHEDULE OF NIS COMMON STOCKHOLDERS

AND

ALLOCATION OF NB COMMON SHARES  

	Name of NIS

Stockholder
 
	 	Number of NIS

Shares Exchanged
	 	Number of NB Common

Shares to be Issued

	Stephen Luke	 	66,136	 	5,952,217
	

William Luke	
 	

1,524	
 	

137,137
	

Christopher Luke	
 	

4,167	
 	

375,000
	

Donald Luke	
 	

1,667	
 	

150,000
	

William L. Mullins	
 	

4,174	
 	

375,646
	

Eva Mullins	
 	

4,222	
 	

380,000
	

William F. Mullins	
 	

4,222	
 	

380,000
	

Shigeru Kaneko	
 	

5,000	
 	

450,000
	

Douglas Dragoo	
 	

556	
 	

50,000
	

Pursuit Venture Group, Inc. 	
 	

8,333	
 	

750,000
	
Totals	
 	
100,000	
 	

9,000,000

 
EXHIBIT 1.2

SUBSCRIPTION AGREEMENT  

        In connection with my exchange of shares of the no par value common stock or common stock options of National Interest Solutions, Inc. ("NIS"), for the
$.0001 par value common stock of NB Acquisitions, Inc. ("NB"), I acknowledge the matters set forth below and represent that the statements made herein are true. I understand that NB is relying
on my truthfulness in issuing its securities to me. 

        I
hereby represent and warrant to NB that I have the full power and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby. This
Agreement is a legal, valid and binding obligation of mine, enforceable against me in accordance with its terms. I own the securities in NIS that I am exchanging for securities of NB free and clear of
all pledges, liens, encumbrances, security interests, equities, claims, options, preemptive rights, rights of first refusal, or any other limitation on my ability to vote such securities or to
transfer such securities to NB. I have full right, title and interest in and to the NIS securities that I am exchanging. 

        I
understand that NB's common stock and stock options (the "Securities) are being issued to me in a private transaction in exchange for my securities in NIS and in reliance upon the
exemption provided in section 4(2) of the Securities Act of 1933, as amended (the "Act") for non-public offerings and pursuant to the Agreement Concerning the Exchange of
Securities between NB and NIS ("Agreement"). I understand that the Securities are "restricted" under applicable securities laws and may not be sold by me except in a registered offering (which may not
ever occur) or in a private transaction like this one. I know this is an illiquid investment and that therefore I may be required to hold the Securities for an indefinite period of time, but under no
circumstances less than one year from the date of its issuance. 

        I
am acquiring the Securities solely for my own account, for long-term investment purposes only and not with a view to sale or other distribution. I agree not to dispose of
any Securities unless and until counsel for NB shall have determined that the intended disposition is permissible and does not violate the Act, any applicable state securities laws or rules and
regulations promulgated thereunder. 

        All
information, financial and otherwise, or documentation pertaining to all aspects of my acquisition of the Securities and the activities and financial information of NB has been made
available to me and my representatives, if any, and I have had ample opportunity to meet with and ask questions of senior officers of NB, and I have received satisfactory answers to any questions I
asked. 

        In
acquiring the Securities, I have reviewed the Agreement and have made such independent investigations of NB as I deemed appropriate. I am an experienced investor, have made
speculative investments in the past and am capable of analyzing the merits of an investment in the Securities. I understand that the Securities are highly speculative, involves a great degree of risk
and should only be acquired by individuals who can afford to lose their entire investment. Nevertheless, I consider this a suitable investment for me because I have adequate financial resources and
income to maintain my current standard of living even after my acquisition of the Securities. I know that NB is a "shell" company with no significant assets or liabilities, its financial affairs can
fluctuate dramatically from time to time, and that although I could lose my entire investment, I am acquiring the Securities because I believe the potential rewards are commensurate with the risk.
Even if the Securities became worthless, I could still maintain my standard of living without significant hardship on me or my family. 

        By
signing this Agreement, I also accept and agree to abide by the terms and conditions of the Agreement as if I had executed the Agreement itself. 

2

 

        Dated
as of this                        day
of                        , 2004. 

	

 	
 	

 Signature
	

 	
 	

 Name, Please Print
	

 	
 	

 Residence Address
	

 	
 	

 City, State and Zip Code
	

 	
 	

 Area Code and Telephone Number
	

 	
 	

 Social Security Number
	

 	
 	

 Number of NIS Common Shares Exchanged

3

QuickLinks

AGREEMENT CONCERNING THE EXCHANGE OF SECURITIES BY AND AMONG NB ACQUISITIONS, INC. AND NATIONAL INTEREST SOLUTIONS, INC. AND THE SECURITY HOLDERS OF NATIONAL INTEREST SOLUTIONS, INC.

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