Document:

EX-10.01

EXECUTION VERSION

     

CREDIT AGREEMENT

among

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.,

VARIOUS LENDERS,

THE CO-DOCUMENTATION AGENTS HEREIN NAMED,

BANK OF AMERICA, N.A.,

as ADMINISTRATIVE AGENT,

and

THE BANK OF NOVA SCOTIA, CITICORP NORTH AMERICA, INC. and THE ROYAL BANK OF SCOTLAND PLC,

as CO-SYNDICATION AGENTS

BANC OF AMERICA SECURITIES LLC,

as SOLE LEAD ARRANGER and JOINT BOOK RUNNING MANAGER

THE BANK OF NOVA SCOTIA and CITIGROUP GLOBAL MARKETS, INC.,

as JOINT BOOK RUNNING MANAGERS

__________________________________

Dated as of June 29, 2007

__________________________________

1

___________________________________________________________________________
>TABLE OF CONTENTS

Page

	 	 	 
	SECTION 1.

1.01

1.02

1.03

1.04

1.05

1.06

1.07

1.08

1.09

1.10

1.11

1.12

1.13

1.14

SECTION 2.

SECTION 3.

3.01

3.02

3.03

SECTION 4.

4.01

	 	AMOUNT AND TERMS OF CREDIT

The Commitments

Minimum Amount of Each Borrowing

Notice of Borrowing

[RESERVED]

Disbursement of Funds

Notes

Conversions

Pro Rata Borrowings

Interest

Interest Periods

Increased Costs, Illegality, etc.

Compensation

Lending Offices; Changes Thereto

Replacement of Lenders

[RESERVED]

FEES; REDUCTIONS OF COMMITMENT

Fees

[RESERVED]

Mandatory Reduction of Commitments

PREPAYMENTS; PAYMENTS; TAXES

Voluntary Prepayments

	 	4.02	 	Mandatory Repayments. (a) Unless the Required Lenders otherwise agree,
all Loans shall be repaid in full on the date on which a Change of Control
occurs.	 

	 	 	 
	4.03

4.04

SECTION 5.

5.01

5.02

5.03

5.04

5.05

5.06

5.07

5.08

5.09

5.10

5.11

5.12

5.13

SECTION 6.

SECTION 7.

7.01

7.02

	 	Method and Place of Payment

Net Payments

CONDITIONS PRECEDENT

Execution of Agreement; Notes

Opinions of Counsel

Corporate Documents; Proceedings; etc.

Fees, etc.

Revolver Repayment; etc.

Outstanding Indebtedness and Preferred Stock; Subordination Agreement

Adverse Change, etc.

Litigation

[RESERVED]

Projections; Solvency Certificate

Notice of Borrowing

No Default; Representations and Warranties

Requirements of Law

[RESERVED].

REPRESENTATIONS, WARRANTIES AND AGREEMENTS

Existence; Compliance with Law

Power; Authorization; Enforceable Obligations

	 	7.03	 	Financial Statements; Financial Condition; Undisclosed Liabilities;
Projections; etc.	 

	 	 	 
	7.04

7.05

7.06

7.07

7.08

7.09

7.10

7.11

7.12

7.13

7.14

7.15

7.16

7.17

SECTION 8.

8.01

8.02

8.03

8.04

8.05

8.06

8.07

8.08

8.09

8.10

8.11

8.12

SECTION 9.

9.01

9.02

9.03

9.04

9.05

9.06

9.07

9.08

SECTION 10.

10.01

10.02

10.03

10.04

10.05

10.06

10.07

10.08

10.09

10.10

10.11

SECTION 11.

11.01

SECTION 12.

12.01

12.02

12.03

12.04

12.05

12.06

12.07

12.08

12.09

SECTION 13.

13.01

13.02

13.03

13.04

13.05

13.06

13.07

	 	Litigation

True and Complete Disclosure

Use of Proceeds

Taxes

Compliance with ERISA

Property

[RESERVED]

Compliance with Statutes, etc.

Investment Company Act

Public Utility Holding Company Act

Environmental Matters

Labor Relations

Intellectual Property, Licenses, Franchises and Formulas

Scheduled Existing Indebtedness, etc.

AFFIRMATIVE COVENANTS

Information Covenants

Books, Records and Inspections

Maintenance of Insurance

Corporate Franchises

Compliance with Statutes, etc.

ERISA

End of Fiscal Years; Fiscal Quarters

Performance of Obligations

Maintenance of Properties

[RESERVED]

Payment of Taxes

Further Assurances

NEGATIVE COVENANTS

Liens

Consolidation, Merger, Sale of Assets, Lease Obligations, etc.

Restricted Payments

Consolidated Interest Coverage Ratio

Maximum Consolidated Leverage Ratio

Business

Restriction on Incurrence of Intercompany Debt, etc.

Transaction with Affiliates.

EVENTS OF DEFAULT

Payments

Representations, etc.

Covenants

Default Under Other Agreements

Bankruptcy, etc.

ERISA

Guaranties

Judgments

Change of Control

[RESERVED]

Subordination Agreement

DEFINITIONS AND ACCOUNTING TERMS

Defined Terms

THE AGENTS

Appointment

Nature of Duties

Lack of Reliance on the Agents

Certain Rights of the Agents

Reliance

Indemnification

Each Agent in its Individual Capacity

Holders

Resignation by, or Removal of, the Agents

MISCELLANEOUS

Payment of Expenses, etc.

Right of Setoff

Notices

Benefit of Agreement; Assignments; Participations

No Waiver; Remedies Cumulative

Payments Pro Rata

Calculations; Computations

	 	13.08	 	GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL	 

	 	 	 
	13.09Counterparts

13.10Effectiveness

13.11Headings Descriptive

13.12Amendment or Waiver; etc.

13.13Survival

13.14Domicile of Loans

13.15Register

13.16[RESERVED]

13.17Confidentiality

13.18Patriot Act

13.19Post-Closing Actions

	 	

	I

SCHEDULE II

SCHEDULE III

SCHEDULE 5.06

SCHEDULE 7.07

SCHEDULE 7.17

SCHEDULE 9.01

	 	Commitments

Lender Addresses and Applicable Lending Offices

Post Closing Actions

Subsidiary Preferred Stock

Taxes

Scheduled Existing Indebtedness

Existing Liens
	EXHIBIT A-1

EXHIBIT A-2

EXHIBIT B-1

EXHIBIT B-2

EXHIBIT C

EXHIBIT D-1

EXHIBIT D-2

EXHIBIT E

EXHIBIT F

EXHIBIT G

EXHIBIT H

	 	Notice of Borrowing

Notice of Conversion/Continuation

B-1 Term Note

B-2 Term Note

Section 4.04(b)(ii) Certificate

Opinion of Weil, Gotshal & Manges LLP, special counsel to the Borrower

Opinion of Venable LLP, special Maryland counsel to the Borrower

Officers’ Certificate

Subordination Agreement

Subsidiaries Guaranty

Assignment and Assumption Agreement

2

CREDIT AGREEMENT, dated as of June 29, 2007, among STARWOOD HOTELS & RESORTS WORLDWIDE,
INC., a Maryland corporation (the “Borrower”), the Lenders party hereto from time to time,
BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative
Agent”), BANC OF AMERICA SECURITIES LLC as sole Lead Arranger (in such capacity, the “Lead
Arranger”) and Joint Book Running Manager, THE BANK OF NOVA SCOTIA and CITIGROUP GLOBAL MARKETS
INC., as Joint Book Running Managers, THE BANK OF NOVA SCOTIA, CITICORP NORTH AMERICA, INC and THE
ROYAL BANK OF SCOTLAND as Co-Syndication Agents, CALYON NEW YORK BRANCH, THE BANK OF
TOKYO-MITSUBISHI UFJ, LTD, DEUTSCHE BANK AG NEW YORK BRANCH, and WACHOVIA BANK, NATIONAL
ASSOCIATION, as Co-Documentation Agents, JPMORGAN CHASE BANK, N.A., MIZUHO CORPORATE BANK, LTD and
SUMITOMO MITSUI BANKING CORPORATION, NEW YORK, as Senior Managing Agents, and BANCA NATIONALE DEL
LAVORO S.P.A. AND MORGAN STANLEY BANK, as Managing Agents (all capitalized terms used herein and
defined in Section 11 are used herein as therein defined).

W I T N E S S E T H:

WHEREAS, subject to and upon the terms and conditions set forth herein, the Lenders are
willing to make available to the Borrower the respective credit facilities provided for herein;

	 	 	 
	NOW, THEREFORE, IT IS AGREED:

	SECTION 1.

	 	Amount and Terms of Credit.
	
 
	 	 

1.01 The Commitments. (a) Subject to and upon the terms and conditions set forth
herein, each Lender with a B-1 Term Loan Commitment severally agrees to make a term loan or term
loans (each, an “B-1 Term Loan” and, collectively, the “B-1 Term Loans”) to the
Borrower, which B-1 Term Loans (i) shall be incurred pursuant to a single drawing on the Closing
Date, (ii) shall be denominated in Dollars, (iii) except as hereinafter provided, shall, at the
option of the Borrower, be incurred and maintained as, and/or converted into, Base Rate Loans or
Eurodollar Loans, provided that except as otherwise specifically provided in Section
1.11(b), all B-1 Term Loans comprising the same Borrowing shall at all times be of the same Type,
and (iv) shall be made by each such Lender in that aggregate principal amount which does not exceed
the B-1 Term Loan Commitment of such Lender on the Closing Date. Once repaid, B-1 Term Loans
incurred hereunder may not be reborrowed.

(b) Subject to and upon the terms and conditions set forth herein, each Lender with a B-2 Term
Loan Commitment severally agrees to make a term loan or term loans (each, a “B-2 Term Loan”
and, collectively, the “B-2 Term Loans”) to the Borrower, which B-2 Term Loans (i) shall be
incurred pursuant to a single drawing on the Closing Date, (ii) shall be denominated in Dollars,
(iii) except as hereinafter provided, shall, at the option of the Borrower, be incurred and
maintained as, and/or converted into, Base Rate Loans or Eurodollar Loans, provided that
except as otherwise specifically provided in Section 1.11(b), all B-2 Term Loans comprising the
same Borrowing shall at all times be of the same Type, and (iv) shall be made by each such Lender
in that aggregate principal amount which does not exceed the B-2 Term Loan Commitment of such
Lender on the Closing Date. Once repaid, B-2 Term Loans incurred hereunder may not be reborrowed.

1.02 Minimum Amount of Each Borrowing. The aggregate principal amount of each
Borrowing of Loans shall not be less than the Minimum Borrowing Amount for the respective Type and
Tranche of Loans to be made or maintained pursuant to the respective Borrowing. More than one
Borrowing may occur on the same date, but at no time shall there be outstanding more than 10
Borrowings of Eurodollar Loans in the aggregate.

1.03 Notice of Borrowing. Whenever the Borrower desires to incur Loans hereunder, it
shall give the Administrative Agent at the Notice Office at least one Business Day’s prior written
notice (or telephonic notice promptly confirmed in writing) of each Base Rate Loan and at least
three Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) of
each Eurodollar Loan to be incurred hereunder, provided that any such notice shall be
deemed to have been given on a certain day only if given before 12:00 Noon (New York time) on such
day. Each such written notice or written confirmation of telephonic notice (each, a “Notice of
Borrowing”), except as otherwise expressly provided in Section 1.11, shall be irrevocable and
shall be given by the Borrower in the form of Exhibit A, appropriately completed to specify (i) the
aggregate principal amount of the Loans to be incurred pursuant to such Borrowing, (ii) the date of
such Borrowing (which shall be a Business Day), (iii) whether the Loans being incurred pursuant to
such Borrowing shall constitute B-1 Term Loans or B-2 Term Loans, (iv) whether the Loans to be made
pursuant to such Borrowing are to be initially maintained as Base Rate Loans or Eurodollar Loans,
and (v) in the case of Eurodollar Loans, the initial Interest Period to be applicable thereto. The
Administrative Agent shall promptly give each Lender which is required to make Loans of the Tranche
specified in the respective Notice of Borrowing, notice of such proposed Borrowing, of such
Lender’s proportionate share thereof and of the other matters required by the immediately preceding
sentence to be specified in the Notice of Borrowing.

1.04 [RESERVED](a) .

1.05 Disbursement of Funds. No later than 12:00 Noon (New York City time) on the date
specified in each Notice of Borrowing, each Lender will make available its pro rata
portion (determined in accordance with Section 1.08) of each such Borrowing requested to be made on
such date in the manner provided below. All such amounts will be made available in Dollars and in
immediately available funds at the Payment Office of the Administrative Agent, and the
Administrative Agent will make available to the Borrower by depositing to its relevant account as
directed by the Borrower, the aggregate of the amounts so made available by the Lenders. Unless
the Administrative Agent shall have been notified by any Lender prior to the date of Borrowing that
such Lender does not intend to make available to the Administrative Agent such Lender’s portion of
any Borrowing to be made on such date, the Administrative Agent may assume that such Lender has
made such amount available to the Administrative Agent on such date of Borrowing and the
Administrative Agent may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. If such corresponding amount is not in fact made available to the
Administrative Agent by such Lender, the Administrative Agent shall be entitled to recover such
corresponding amount on demand from such Lender. If such Lender does not pay such corresponding
amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall
promptly notify the Borrower and, to the extent such corresponding amount has previously been
disbursed to the Borrower, the Borrower shall immediately pay such corresponding amount to the
Administrative Agent. The Administrative Agent shall also be entitled to recover on demand from
such Lender or the Borrower interest on such corresponding amount in respect of each day from the
date such corresponding amount was made available by the Administrative Agent to the Borrower until
the date such corresponding amount is recovered by the Administrative Agent, at a rate per annum
equal to (i) if recovered from such Lender, the overnight Federal Funds Rate as in effect from time
to time and (ii) if recovered from the Borrower, the rate of interest applicable to the respective
Borrowing, as determined pursuant to Section 1.09. Nothing in this Section 1.05 shall be deemed to
relieve any Lender from its obligation to make Loans hereunder or to prejudice any rights which the
Borrower may have against any Lender as a result of any failure by such Lender to make Loans
required to be made by it hereunder.

1.06 Notes. (a) Subject to the provisions of the following clause (c), the
Borrower’s obligation to pay the principal of, and interest on, the Loans made by each Lender to
the Borrower shall be evidenced (i) if B-1 Term Loans, by a promissory note duly executed and
delivered by the Borrower substantially in the form of Exhibit B-1, with blanks appropriately
completed in conformity herewith (each, a “B-1 Term Note” and, collectively, the “B-1
Term Notes”), and (ii) if B-2 Term Loans, by a promissory note duly executed and delivered by
the Borrower substantially in the form of Exhibit B-2, with blanks appropriately completed in
conformity herewith (each, a “B-2 Term Note” and, collectively, the “B-2 Term
Notes”).

(b) Each Lender will note on its internal records the amount of each Loan made by it to the
Borrower and each payment in respect thereof and will prior to any transfer of any of its Notes
endorse on the reverse side thereof the outstanding principal amount of Loans evidenced thereby.
Failure to make any such notation, or any error in such notation, shall not affect the Borrower’s
obligations in respect of such Loans. Each Lender’s internal records of the amount of each Loan
made by it and each payment in respect thereof shall be final and conclusive absent manifest error.

(c) Notwithstanding anything to the contrary contained above or elsewhere in this Agreement,
Notes shall only be delivered to Lenders with Loans of the respective Tranches which at any time
specifically request the delivery of such Notes. No failure of any Lender to request or obtain a
Note evidencing its Loans or to the Borrower shall affect or in any manner impair the obligations
of the Borrower to pay the Loans (and all related Obligations) which would otherwise be evidenced
thereby in accordance with the requirements of this Agreement, and shall not in any way affect the
guaranties therefor provided pursuant to the various Credit Documents. Any Lender which does not
have a Note evidencing its outstanding Loans shall in no event be required to make the notations
otherwise described in preceding clause (b). At any time when any Lender requests the delivery of
a Note to evidence its Loans, the Borrower shall promptly execute and deliver to the respective
Lender the requested Note or Notes in the appropriate amount or amounts to evidence such Loans.

1.07 Conversions. The Borrower shall have the option to convert, on any Business Day
occurring after the Closing Date, all or a portion equal to at least the Minimum Borrowing Amount
(for the Type of Loan into which the conversion is being made), of the outstanding principal amount
of Loans made pursuant to one or more Borrowings of one or more Types of Loans under a single
Tranche into a Borrowing or Borrowings of another Type of Loan under such Tranche, provided
that, (i) if Eurodollar Loans are converted into Base Rate Loans on a date other than the last day
of an Interest Period applicable to the Loans being converted, the Borrower shall compensate the
applicable Lenders for any breakage costs incurred in connection therewith as set forth in Section
1.12, (ii) no such partial conversion of Eurodollar Loans shall reduce the outstanding principal
amount of such Eurodollar Loans made pursuant to a single Borrowing to less than the Minimum
Borrowing Amount for Eurodollar Loans, (iii) unless the Required Lenders otherwise agree, Base Rate
Loans may not be converted into Eurodollar Loans if any Event of Default exists on the date of
conversion, and (iv) no conversion pursuant to this Section 1.07 shall result in a greater number
of Borrowings of Eurodollar Loans than is permitted under Section 1.02. Each such conversion shall
be effected by the Borrower by giving the Administrative Agent at the Notice Office, prior to 12:00
Noon (New York time), at least three Business Days’ prior notice substantially in the form of
Exhibit A-2 hereto (each, a “Notice of Conversion”) specifying the Borrowing or Borrowings
pursuant to which such Loans were made and, if to be converted into Eurodollar Loans, the Interest
Period to be initially applicable thereto. The Administrative Agent shall give each Lender prompt
notice of any such proposed conversion affecting any of its Loans.

1.08 Pro Rata Borrowings. All Borrowings of B-1 Term Loans and B-2 Term Loans under
this Agreement shall be incurred from the Lenders pro rata on the basis of their
B-1 Term Loan Commitments or B-2 Term Loan Commitments, as the case may be. No Lender shall be
responsible for any default by any other Lender of its obligation to make Loans hereunder and each
Lender shall be obligated to make the Loans provided to be made by it hereunder, regardless of the
failure of any other Lender to make its Loans hereunder.

1.09 Interest. (a) The Borrower hereby agrees to pay interest in respect of the
unpaid principal amount of each Base Rate Loan made to it from the date of the Borrowing thereof
until the earlier of (x) the maturity thereof (whether by acceleration, prepayment or otherwise)
and (y) the conversion of such Base Rate Loan to a Eurodollar Loan pursuant to Section 1.07, at a
rate per annum which shall be equal to the sum of the Applicable Margin plus the Base Rate,
each as in effect from time to time.

(b) The Borrower hereby agrees to pay interest in respect of the unpaid principal amount of
each Eurodollar Loan made to it from the date of the Borrowing thereof until the earlier of (x) the
maturity thereof (whether by acceleration, prepayment or otherwise) and (y) the conversion of such
Eurodollar Loan to a Base Rate Loan pursuant to Section 1.07, 1.10 or 1.11, as applicable, at a
rate per annum which shall, during each Interest Period applicable thereto, be equal to the sum of
the Applicable Margin as in effect from time to time plus the Eurodollar Rate for such
Interest Period.

(c) Overdue principal and, to the extent permitted by law, overdue interest in respect of each
Loan and any other overdue amount payable hereunder or under any other Credit Documents shall, in
each case, bear interest at a rate per annum equal to the greater of (x) the rate which is 2% in
excess of the rate then borne by such Loan and (y) the rate which is 2% in excess of the rate
otherwise applicable to Base Rate Loans of the respective Tranche from time to time, and all other
overdue amounts payable hereunder and under any other Credit Document shall bear interest at a rate
per annum equal to the rate which is 2% in excess of the rate applicable to Loans that are
maintained at Base Rate Loans from time to time. Interest that accrues under this Section 2.08(c)
shall be payable on demand.

(d) Accrued (and theretofore unpaid) interest shall be payable (i) in respect of each Base
Rate Loan, (x) quarterly in arrears on each Quarterly Payment Date, (y) on the date of any
repayment or prepayment in full of all outstanding Base Rate Loans of any Tranche, and (z) at
maturity (whether by acceleration or otherwise) and, after such maturity, on demand, and (ii) in
respect of each Eurodollar Loan, (x) on the last day of each Interest Period applicable thereto
and, in the case of an Interest Period in excess of three months, on each date occurring at three
month intervals after the first day of such Interest Period, (y) on the date of any repayment or
prepayment (on the amount repaid or prepaid), and (z) at maturity (whether by acceleration or
otherwise) and, after such maturity, on demand.

(e) Upon each Interest Determination Date, the Administrative Agent shall determine the
Eurodollar Rate for the respective Interest Period or Interest Periods to be applicable to
Eurodollar Loans and shall promptly notify the Borrower and the Lenders thereof. Each such
determination shall, absent manifest error, be final and conclusive and binding on all parties
hereto.

1.10 Interest Periods. At the time the Borrower gives any Notice of Borrowing or
Notice of Conversion in respect of the making of, or conversion into, any Eurodollar Loan (in the
case of the initial Interest Period applicable thereto) or on the third Business Day prior to the
expiration of an Interest Period applicable to such Eurodollar Loan (in the case of any subsequent
Interest Period), the Borrower shall have the right to elect, by giving the Administrative Agent
notice thereof, the interest period (each, an “Interest Period”) applicable to such
Eurodollar Loan, which Interest Period shall, at the option of the Borrower, be a one, two, three
or six month period or, if agreed to by each Lender participating in a Borrowing of such Eurodollar
Loan, a one-week period, nine-month period or one-year period, provided that:

(i) all Eurodollar Loans comprising a single Borrowing shall at all times have the same
Interest Period;

(ii) the initial Interest Period for any Borrowing of Eurodollar Loans shall commence
on the date of such Borrowing (including the date of any conversion thereto from a Borrowing
of Base Rate Loans) and each Interest Period occurring thereafter in respect of such
Borrowing of Eurodollar Loans shall commence on the day on which the next preceding Interest
Period applicable thereto expires;

(iii) if any Interest Period for a Eurodollar Loan begins on a day for which there is
no numerically corresponding day in the calendar month at the end of such Interest Period,
such Interest Period shall end on the last Business Day of such calendar month;

(iv) if any Interest Period for a Eurodollar Loan would otherwise expire on a day which
is not a Business Day, such Interest Period shall expire on the next succeeding Business
Day; provided, however, that if any Interest Period for a Eurodollar Loan
would otherwise expire on a day which is not a Business Day but is a day of the month after
which no further Business Day occurs in such month, such Interest Period shall expire on the
next preceding Business Day;

(v) unless the Required Lenders otherwise agree, no Interest Period may be selected at
any time when any Event of Default is in existence; and

(vi) no Interest Period in respect of any Borrowing under a given Tranche of Loans
shall be selected which extends beyond the Maturity Date for such Tranche of Loans.

If upon the expiration of any Interest Period applicable to a Borrowing of Eurodollar Loans,
the Borrower has failed to elect, or is not permitted to elect, a new Interest Period to be
applicable to such Eurodollar Loans as provided above, the Borrower shall be deemed to have elected
to convert such Eurodollar Loans into Base Rate Loans, in any such case effective as of the
expiration date of such current Interest Period.

1.11 Increased Costs, Illegality, etc. (a) If any Lender (or, with respect to clause
(i) below, the Administrative Agent) shall have determined in good faith (which determination
shall, absent manifest error, be final and conclusive and binding upon all parties hereto):

(i) on any Interest Determination Date that, by reason of any changes arising after the
Effective Date affecting the applicable interbank market, adequate and fair means do not
exist for ascertaining the applicable interest rate on the basis provided for in the
definition of Eurodollar Rate; or

(ii) at any time, that such Lender shall incur increased costs or reductions in the
amounts received or receivable hereunder with respect to any Eurodollar Loan because of (x)
any change arising after the Effective Date in any applicable law or governmental rule,
regulation, order, guideline or request (whether or not having the force of law) or in the
interpretation or administration thereof and including the introduction of any new law or
governmental rule, regulation, order, guideline or request, such as, for example, but not
limited to: (A) a change in the basis of taxation of payment to any Lender of the principal
of or interest on the Notes or any other amounts payable hereunder (except for changes in
the rate of tax on, or determined by reference to, the net income or profits of such Lender
pursuant to the laws of the jurisdiction in which it is organized or in which its principal
office or applicable lending office is located or any subdivision thereof or therein) or (B)
a change in official reserve requirements (except to the extent included in the computation
of the Eurodollar Rate or covered by Section 1.11(d)) or any special deposit, assessment or
similar requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (or its applicable lending office) and/or (y) other circumstances
since the Effective Date affecting the applicable interbank market; or

(iii) at any time after the Effective Date, that the making or continuance of any
Eurodollar Loan has been made (x) unlawful by any law or governmental rule, regulation or
order, (y) impossible by compliance by any Lender in good faith with any governmental
request (whether or not having the force of law) or (z) impracticable as a result of a
contingency occurring after the date of this Agreement which materially and adversely
affects the applicable interbank market;

then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i)
above) shall promptly give notice (by telephone promptly confirmed in writing) to the Borrower and,
except in the case of clause (i) above, to the Administrative Agent of such determination (which
notice the Administrative Agent shall promptly transmit to each of the other Lenders). Thereafter
(x) in the case of clause (i) above, Eurodollar Loans shall no longer be available until such time
as the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving
rise to such notice by the Administrative Agent no longer exist, and any Notice of Borrowing or
Notice of Conversion given by the Borrower with respect to Eurodollar Loans which have not yet been
incurred (including by way of conversion) shall be deemed rescinded by the Borrower, (y) in the
case of clause (ii) above, the Borrower shall pay to such Lender, upon its written request
therefor, such additional amounts (in the form of an increased rate of, or a different method of
calculating, interest or otherwise as such Lender shall determine) as shall be required to
compensate such Lender for such increased costs or reductions in amounts received or receivable
hereunder (a written notice as to the additional amounts owed to such Lender, showing in reasonable
detail the basis for the calculation thereof, submitted to the Borrower by such Lender shall,
absent manifest error, be final and conclusive and binding on all the parties hereto) and (z) in
the case of clause (iii) above, the Borrower shall take one of the actions specified in Section
1.11(b) as promptly as possible and, in any event, within the time period required by law.

(b) At any time that any Eurodollar Loan is affected by the circumstances described in Section
1.11(a)(ii) or (iii), the Borrower may (and in the case of a Eurodollar Loan affected by the
circumstances described in Section 1.11(a)(iii) shall) either (x) if the affected Eurodollar Loan
is then being made initially or pursuant to a conversion, cancel the respective Borrowing by giving
the Administrative Agent telephonic notice (confirmed in writing) on the same date that the
Borrower was notified by the affected Lender or the Administrative Agent or (y) if the affected
Eurodollar Loan is then outstanding, upon at least three Business Days’ written notice to the
Administrative Agent, request the affected Lender to convert such Eurodollar Loan into a Base Rate
Loan (which conversion, in the case of the circumstances described in Section 1.11(a)(iii), shall
occur no later than the last day of the Interest Period then applicable to such Eurodollar Loan (or
such earlier date as shall be required by applicable law)); provided that, if more than one
Lender is affected at any time as described above in this clause (b), then all affected Lenders
must be treated the same pursuant to this Section 1.11(b).

(c) If at any time after the Effective Date any Lender determines that the introduction of or
any change (which introduction or change shall have occurred after the Effective Date) in any
applicable law or governmental rule, regulation, order, guideline, directive or request (whether or
not having the force of law) concerning capital adequacy, or any change in interpretation or
administration thereof by the National Association of Insurance Commissioners (“NAIC”) or
any governmental authority, central bank or comparable agency, will have the effect of increasing
the amount of capital required or expected to be maintained by such Lender or any corporation
controlling such Lender based on the existence of such Lender’s Commitments hereunder or its
obligations hereunder, then the Borrower agrees to pay to such Lender, upon its written demand
therefor, such additional amounts as shall be required to compensate such Lender or such other
corporation for the increased cost to such Lender or such other corporation or the reduction in the
rate of return to such Lender or such other corporation as a result of such increase of capital.
In determining such additional amounts, each Lender will act reasonably and in good faith and will
use averaging and attribution methods which are reasonable, provided that such Lender’s
determination of compensation owing under this Section 1.11(c) shall, absent manifest error, be
final and conclusive and binding on all the parties hereto. Each Lender, upon determining that any
additional amounts will be payable pursuant to this Section 1.11(c), will give prompt written
notice thereof to the Borrower, which notice shall show in reasonable detail the basis for
calculation of such additional amounts.

(d) If any Lender shall in good faith determine (which determination shall, absent manifest
error, be final and conclusive and binding on all parties hereto) at any time that such Lender is
required to maintain reserves (including, without limitation, any marginal, emergency,
supplemental, special or other reserves required by applicable law) which have been established by
any Federal, state, local or foreign court or governmental agency, authority, instrumentality or
regulatory body with jurisdiction over such Lender (including any branch, Affiliate or funding
office thereof) in respect of any Eurodollar Loans or any category of liabilities which includes
deposits by reference to which the interest rate on any Eurodollar Loan is determined or any
category of extensions of credit or other assets which includes loans of the same or similar type
as any Eurodollar Loans, then, unless such reserves are already being charged for pursuant to
Section 1.11(a)(ii), such Lender shall promptly notify the Borrower in writing specifying the
additional amounts required to indemnify such Lender against the cost of maintaining such reserves
(such written notice to provide in reasonable detail a computation of such additional amounts) and
the Borrower shall, and shall be obligated to, pay to such Lender such specified amounts as
additional interest at the time that the Borrower is otherwise required to pay interest in respect
of such Eurodollar Loans or, if later, on written demand therefor by such Lender.

1.12 Compensation. The Borrower shall compensate each Lender, upon its written
request (which request shall set forth in reasonable detail the basis for requesting such
compensation), for all reasonable losses, expenses and liabilities (including, without limitation,
any loss, expense or liability incurred by reason of the liquidation or reemployment of deposits or
other funds required by such Lender to fund its Eurodollar Loans, but excluding loss of anticipated
profits) which such Lender may sustain: (i) if for any reason (other than a default by such
Lender) a Borrowing of, or conversion from or into, Eurodollar Loans does not occur on a date
specified therefor in a Notice of Borrowing or Notice of Conversion (whether or not rescinded or
deemed rescinded pursuant to Section 1.11(a) or (b)); (ii) if any repayment (including any
repayment made pursuant to Section 4.01 or 4.02 or as a result of an acceleration of the Loans
pursuant to Section 10) or conversion of any Eurodollar Loans occurs on a date which is not the
last day of an Interest Period with respect thereto; (iii) if any prepayment of any Eurodollar
Loans is not made on any date specified in a notice of prepayment given by the Borrower; or (iv) as
a consequence of (x) any other default by the Borrower to repay its Loans when required by the
terms of this Agreement or any Note held by such Lender, (y) any election made pursuant to Section
1.11(b) or (z) the replacement of any Lender pursuant to Section 1.14.

1.13 Lending Offices; Changes Thereto. (a)  Each Lender may at any time or from time
to time designate, by written notice to the Administrative Agent to the extent not already
reflected on Schedule II, one or more lending offices (which, for this purpose, may include
Affiliates of the respective Lender) for the various Loans made by such Lender; provided
that, for designations made after the Closing Date, to the extent such designation shall result in
increased costs under Section 1.11 or 4.04 in excess of those which would be charged in the absence
of the designation of a different lending office (including a different Affiliate of the respective
Lender), then the Borrower shall not be obligated to pay such excess increased costs (although the
Borrower, in accordance with and pursuant to the other provisions of this Agreement, shall be
obligated to pay the costs which would apply in the absence of such designation and any subsequent
increased costs of the type described above resulting from changes after the date of the respective
designation). Each lending office and Affiliate of any Lender designated as provided above shall,
for all purposes of this Agreement, be treated in the same manner as the respective Lender (and
shall be entitled to all indemnities and similar provisions in respect of its acting as such
hereunder).

(b) Each Lender agrees that on the occurrence of any event giving rise to the operation of
Section 1.11(a)(ii) or (iii), Section 1.11(c), Section 1.11(d) or Section 4.04 with respect to such
Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy
considerations of such Lender) to designate another lending office for any Loans affected by such
event, provided that such designation is made on such terms that such Lender and its
lending office suffer (as determined in such Lender’s sole discretion) no economic, legal or
regulatory disadvantage, with the object of avoiding the consequence of the event giving rise to
the operation of such Section. Nothing in this Section 1.13 shall affect or postpone any of the
obligations of the Borrower or the right of any Lender provided in Sections 1.11 and 4.04.

1.14 Replacement of Lenders. (x) If any Lender becomes a Defaulting Lender, (y) upon
the occurrence of an event giving rise to the operation of Section 1.11(a)(ii) or (iii), Section
1.11(c), Section 1.11(d) or Section 4.04 with respect to any Lender which results in such Lender
charging to the Borrower increased costs in excess of those being generally charged by the other
Lenders or (z) in the case of the refusal by a Lender to consent to proposed changes, waivers,
discharges or terminations with respect to this Agreement which have been approved by the Required
Lenders as (and to the extent) provided in Section 13.12(b), the Borrower shall have the right, if
no Event of Default and no Specified Default will exist immediately after giving effect to such
replacement, to replace such Lender (the “Replaced Lender”) with one or more other Eligible
Transferees, none of whom shall constitute a Defaulting Lender at the time of such replacement
(collectively, the “Replacement Lender”) and each of whom shall be required to be
reasonably acceptable to the Administrative Agent; provided that:

(i) any Replacement Lender in a replacement pursuant to this Section 1.14 (with each
such replacement being herein called a “Replacement”) shall be required to comply
with the requirements of Section 13.04(b) and at the time of any Replacement the Replacement
Lender shall enter into one or more Assignment and Assumption Agreements pursuant to Section
13.04(b) (and shall pay all fees payable pursuant to said Section 13.04(b)) pursuant to
which the Replacement Lender shall acquire all of the outstanding Loans of the Replaced
Lender and, in connection therewith, shall pay to the Replaced Lender in respect thereof
amounts equal to the sum of (I) the principal of, and all accrued interest on, all
outstanding Loans of the Replaced Lender, and (II) all accrued, but theretofore unpaid, Fees
(if any) owing to the Replaced Lender pursuant to Section 3.01; and

(ii) all Obligations of the Borrower due and owing to the Replaced Lender at such time
(other than those specifically described in clause (i) above in respect of which the
assignment purchase price has been, or is concurrently being, paid) shall be paid in full to
such Replaced Lender concurrently with such replacement.

Upon the execution of the respective Assignment and Assumption Agreements, the payment of
amounts referred to in clauses (i) and (ii) above, recordation of the assignment on the Register by
the Administrative Agent pursuant to Section 13.15 and, if so requested by the Replacement Lender,
delivery to the Replacement Lender of the appropriate Note or Notes executed by the Borrower, the
Replacement Lender shall become a Lender hereunder and the Replaced Lender shall cease to
constitute a Lender hereunder, except with respect to indemnification provisions under this
Agreement (including, without limitation, Sections 1.11, 1.12, 1.16, 4.04, 12.06 and 13.01), which
shall survive as to such Replaced Lender.

	 	 	 
	SECTION 2.

	 	[RESERVED].
	
 
	 	 
	SECTION 3.

	 	Fees; Reductions of Commitment.
	
 
	 	 

3.01 Fees. Each Borrower shall pay to the Administrative Agent, for its own account,
such other fees as have been agreed to in writing by the Borrower and the Administrative Agent.

3.02 [RESERVED].

3.03 Mandatory Reduction of Commitments. (a)  The Total Commitment (and the
Commitment of each Lender) shall terminate in its entirety on July 5, 2007, unless the Closing Date
has occurred on or prior to such date.

(b) In addition to any other mandatory commitment reductions pursuant to this Section 3.03,
the Total B-1 Term Loan Commitment (and the B-1 Term Loan Commitment of each Lender) shall
terminate in its entirety on the Closing Date (after giving effect to the incurrence of B-1 Term
Loans on such date).

(c) In addition to any other mandatory commitment reductions pursuant to this Section 3.03,
the Total B-2 Term Loan Commitment (and the B-2 Term Loan Commitment of each Lender) shall
terminate in its entirety on the Closing Date (after giving effect to the incurrence of B-2 Term
Loans on such date).

SECTION 4. Prepayments; Payments; Taxes.

4.01 Voluntary Prepayments. The Borrower shall have the right to prepay the Loans of
any Tranche (as selected by the Borrower), without premium or penalty, in whole or in part, at any
time and from time to time on the following terms and conditions:

(i) the Borrower shall give the Administrative Agent at the Notice Office written
notice (or telephonic notice promptly confirmed in writing) of (1) its intent to prepay such
Loans, (2) whether B-1 Term Loans or B-2 Term Loans shall be prepaid, (3) the amount of such
prepayment and the Types of Loans to be prepaid and (4) in the case of Eurodollar Loans, the
specific Borrowing or Borrowings pursuant to which made, with such notice to be given by the
Borrower prior to 12:00 Noon (New York City time) at least one Business Day prior to the
date of such prepayment, and to be transmitted promptly by the Administrative Agent to each
of the Lenders with Loans of the respective Tranche and Type;

(ii) each prepayment shall be in an aggregate principal amount at least equal to the
Minimum Borrowing Amount for the applicable Tranche and Type of Loans, provided that
if any partial prepayment of Eurodollar Loans made pursuant to any Borrowing shall reduce
the outstanding Eurodollar Loans made pursuant to such Borrowing to an amount less than the
respective Minimum Borrowing Amount for such Tranche and Type of Loans, then such Borrowing
may not be continued as a Borrowing of Eurodollar Loans and any election of an Interest
Period with respect thereto shall have no force or effect; and

(iii) each prepayment in respect of any Loans under a given Tranche made pursuant to a
given Borrowing shall be applied pro rata among such Loans comprising such
Borrowing.

4.02 Mandatory Repayments. (a) Unless the Required Lenders otherwise agree, all Loans
shall be repaid in full on the date on which a Change of Control occurs.

(b) All B-1 Term Loans shall be repaid in full on the B-1 Term Loan Maturity Date, and all B-2
Term Loans shall be repaid in full on the B-2 Term Loan Maturity Date.

4.03 Method and Place of Payment. Except as otherwise specifically provided herein,
all payments under this Agreement or any Note shall be made to the Administrative Agent for the
account of the Lender or Lenders entitled thereto not later than 12:00 Noon (New York City time) on
the date when due and shall be made in Dollars in immediately available funds at the Payment Office
of the Administrative Agent. The Administrative Agent will thereafter cause to be distributed on
the same day (if payment was actually received by the Administrative Agent prior to 12:00 Noon (New
York City time)) like funds relating to the payment of principal, interest or Fees ratably to the
Lenders entitled thereto. Any payments under this Agreement which are made later than 12:00 Noon
(New York City time) shall be deemed to have been made on the next succeeding Business Day.
Whenever any payment to be made hereunder or under any Note shall be stated to be due on a day
which is not a Business Day, the due date thereof shall be extended to the next succeeding Business
Day and, with respect to payments of principal, interest and fees shall be payable at the
applicable rate during such extension.

4.04 Net Payments. (a) All payments made by the Borrower hereunder or under any Note
will be made without setoff, deduction, counterclaim or other defense. Except as provided in
Sections 4.04(b) and (c), all such payments will be made free and clear of, and without deduction
or withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or
other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political
subdivision or taxing authority thereof or therein with respect to such payments (but excluding,
except as provided in the second succeeding sentence, any tax imposed on or measured by the net
income or net profits of a Lender pursuant to the laws of the jurisdiction in which it is organized
or the jurisdiction in which the principal office or applicable lending office of such Lender is
located or any subdivision thereof or therein) and all interest, penalties or similar liabilities
with respect thereto (all such non-excluded taxes, levies, imposts, duties, fees, assessments or
other charges being referred to collectively as “Taxes”). If any Taxes are so levied or
imposed, the Borrower agrees to pay the full amount of such Taxes, and such additional amounts as
may be necessary so that every payment of all amounts due under this Agreement or under any Note,
after withholding or deduction for or on account of any Taxes, will not be less than the amount
provided for herein or in such Note. If any amounts are payable in respect of Taxes pursuant to
the preceding sentence, the Borrower agrees to reimburse each Lender, upon the written request of
such Lender, for any additional amount of taxes imposed on or measured by the net income or net
profits of such Lender pursuant to the laws of the jurisdiction in which such Lender is organized
or in which the principal office or applicable lending office of such Lender is located or under
the laws of any political subdivision or taxing authority of any such jurisdiction in which such
Lender is organized or in which the principal office or applicable lending office of such Lender is
located and for any withholding of taxes as such Lender shall determine are payable by, or withheld
from, such Lender in respect of such amounts so paid to or on behalf of such Lender pursuant to the
preceding sentence and in respect of any amounts paid to or on behalf of such Lender pursuant to
this sentence. The Borrower will furnish to the Administrative Agent and the applicable Lender
within 45 days after the date the payment of any Taxes is due pursuant to applicable law certified
copies of official tax receipts evidencing such payment by the Borrower. The Borrower agrees to
indemnify and hold harmless each Lender, and reimburse such Lender upon its written request, for
the amount of any Taxes so levied or imposed and paid by such Lender.

(b) Each Lender that is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) agrees to deliver to the Borrower and the Administrative Agent on or prior
to the Effective Date, or in the case of a Lender that is an assignee or transferee of an interest
under this Agreement pursuant to Section 1.14 or 13.04 (unless the respective Lender was already a
Lender hereunder immediately prior to such assignment or transfer), on the date of such assignment
or transfer to such Lender, (i) two accurate and complete original signed copies of U.S. Internal
Revenue Service Form W-8ECI or Form W-8BEN (with respect to a complete exemption under an income
tax treaty) (or successor forms) certifying to such Lender’s entitlement as of such date to a
complete exemption from United States withholding tax with respect to payments to be made under
this Agreement and under any Note, or (ii) if the Lender is not a “bank” within the meaning of
Section 881(c)(3)(A) of the Code and cannot deliver either U.S. Internal Revenue Service Form
W-8ECI or Form W-8BEN (with respect to a complete exemption under an income tax treaty) pursuant to
clause (i) above, (x) a certificate substantially in the form of Exhibit C (any such certificate, a
“Section 4.04(b)(ii) Certificate”) and (y) two accurate and complete original signed copies
of U.S. Internal Revenue Service Form W-8BEN (with respect to the portfolio interest exemption) (or
successor form) certifying to such Lender’s entitlement to a complete exemption from United States
withholding tax with respect to payments of interest to be made under this Agreement and under any
Note. In addition, each Lender agrees that from time to time after the Effective Date, when a
lapse in time or change in circumstances renders the previous certification obsolete or inaccurate
in any material respect, it will deliver to the Borrower and the Administrative Agent two new
accurate and complete original signed copies of U.S. Internal Revenue Service Form W-8ECI or Form
W-8BEN (with respect to the benefits of any income tax treaty), or Form W-8BEN (with respect to the
portfolio interest exemption) and a Section 4.04(b)(ii) Certificate, as the case may be, and such
other forms as may be required in order to confirm or establish the entitlement of such Lender to a
continued exemption from or reduction in United States withholding tax with respect to payments
under this Agreement and any Note, or it shall immediately notify the Borrower and the
Administrative Agent of its inability to deliver any such Form or Certificate in which case such
Lender shall not be required to deliver any such Form or Certificate pursuant to this
Section 4.04(b). Notwithstanding anything to the contrary contained in Section 4.04(a), but
subject to the last sentence of Section 13.04(b) and the immediately succeeding sentence, (x) the
Borrower shall be entitled, to the extent it is required to do so by law, to deduct or withhold
income or similar taxes imposed by the United States (or any political subdivision or taxing
authority thereof or therein) from interest, fees or other amounts payable hereunder for the
account of any Lender which is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) for U.S. Federal income tax purposes to the extent that such Lender has
not provided to the Borrower U.S. Internal Revenue Service Forms that establish a complete
exemption from such deduction or withholding and (y) the Borrower shall not be obligated pursuant
to Section 4.04(a) hereof to gross-up payments to be made to a Lender in respect of income or
similar taxes imposed by the United States if (I) such Lender has not provided to the Borrower the
U.S. Internal Revenue Service Forms required to be provided to the Borrower pursuant to this
Section 4.04(b) or (II) in the case of a payment, other than interest, to a Lender described in
clause (ii) above, to the extent that such forms do not establish a complete exemption from
withholding of such taxes. Notwithstanding anything to the contrary contained in the preceding
sentence or elsewhere in this Section 4.04 and except as set forth in Section 13.04(b), the
Borrower agrees to pay additional amounts and to indemnify each Lender in the manner set forth in
Section 4.04(a) (without regard to the identity of the jurisdiction requiring the deduction or
withholding) in respect of any amounts deducted or withheld by it as described in the immediately
preceding sentence as a result of any changes that are effective after the Effective Date in any
applicable law, treaty, governmental rule, regulation, guideline or order, or in the interpretation
thereof, relating to the deducting or withholding of income or similar Taxes.

(c) Each Lender shall use reasonable efforts (consistent with legal and regulatory
restrictions and subject to overall policy considerations of such Lender) to file any certificate
or document or to furnish any information as reasonably requested by the Borrower pursuant to any
applicable treaty, law or regulation if the making of such filing or the furnishing of such
information would avoid the need for or reduce the amount of any additional amounts payable by the
Borrower and would not, in the sole discretion of such Lender, be disadvantageous to such Lender.

SECTION 5. Conditions Precedent. The obligation of each Lender to make Loans on the
Closing Date, is subject to the satisfaction of the following conditions:

5.01 Execution of Agreement; Notes. On or prior to the Closing Date, (i) the
Effective Date shall have occurred and (ii) there shall have been delivered to the Administrative
Agent for the account of each of the Lenders (subject to Section 1.06(c)) the appropriate Notes
executed by the Borrower, in each case in the amount, maturity and as otherwise provided herein.

5.02 Opinions of Counsel. On the Closing Date, the Agents shall have received from
(i) Weil, Gotshal & Manges LLP, special counsel to the Borrower, an opinion addressed to the Agents
and each of the Lenders and dated the Closing Date in the form set forth as Exhibit D-1, (ii)
Venable LLP, special Maryland counsel to the Borrower, an opinion addressed to the Agents and each
of the Lenders and dated the Closing Date in the form set forth as Exhibit D-2, and (iii) such
other special and local counsel as may be reasonably required by any Agent, an opinion addressed to
the Agents and the Lenders and dated the Closing Date, and in each case covering such other matters
incident to the transactions contemplated herein as any Agent may reasonably request.

5.03 Corporate Documents; Proceedings; etc. (a)  On the Closing Date, the Agents
shall have received a certificate of the Borrower, dated the Closing Date, signed by an Authorized
Officer of the Borrower, and attested to by the Secretary or any Assistant Secretary of the
Borrower, in the form of Exhibit E with appropriate insertions, together with copies of the
declaration of trust, certificate of incorporation or partnership agreement (or other equivalent
organizational document) and by-laws of the Borrower and the resolutions of the Borrower referred
to in such certificate, and the foregoing shall be reasonably acceptable to the Agents.

(b) All corporate and legal proceedings and all instruments and agreements in connection with
the transactions contemplated by this Agreement and the other Credit Documents shall be reasonably
satisfactory in form and substance to the Agents and the Required Lenders, and the Agents shall
have received all information and copies of all documents and papers, including records of
corporate proceedings, governmental approvals and good standing certificates if any, which the
Agents reasonably may have requested in connection therewith, such documents and papers where
appropriate to be certified by proper corporate or governmental authorities.

5.04 Fees, etc. On the Closing Date, all costs, fees and expenses, and all other
costs contemplated by this Agreement, due to the Agents (including, without limitation, legal fees
and expenses) shall have been paid to the extent then due.

5.05 Revolver Repayment; etc. On or prior to the Closing Date, the Borrower shall
have prepaid approximately $1,000,000,000 of outstanding Loans under, and as defined in, the
Existing Credit Agreement (with no required reduction of commitments under the Existing Credit
Agreement), together with accrued and unpaid interest thereon (the “Revolver Repayment”).

5.06 Outstanding Indebtedness and Preferred Stock; Subordination Agreement. (a)  On
the Closing Date, and after giving effect to the transactions described above, the Borrower and its
Subsidiaries shall have no outstanding Indebtedness or Preferred Stock other than (i) Indebtedness
pursuant to this Agreement, (ii) the Preferred Stock issued by certain Subsidiaries of the Borrower
described on Schedule 5.06 hereto and (iii) the Scheduled Existing Indebtedness identified in
Schedule 7.17 hereto (with, in the case of Intercompany Existing Indebtedness, normal fluctuations
in the outstanding principal amounts thereof from the date of such Schedule), which shall remain
outstanding and in effect after giving effect to the Transaction, with no defaults or events of
default existing thereunder, with such exceptions as are satisfactory to the Agents.

(b) On or prior to the Closing Date, the Borrower and each Subsidiary of the Borrower that is
an obligee with respect to any Intercompany Debt shall have duly authorized, executed and delivered
a Subordination Agreement in the form of Exhibit F (as amended, modified and/or supplemented from
time to time, the “Subordination Agreement”), and the Subordination Agreement shall be in
full force and effect.

5.07 Adverse Change, etc. (a)  Since December 31, 2006, except as otherwise publicly
disclosed by the Borrower in a filing with the SEC after such date, nothing shall have occurred
(and neither any Agent nor the Lenders shall have become aware of any facts, conditions or other
information not previously known to it) which any Agent or the Required Lenders shall determine has
had, or could reasonably be expected to have, a Material Adverse Effect.

(b) All necessary governmental (domestic and foreign) and third party approvals and/or
consents in connection with any Credit Event and the Transaction, the other transactions
contemplated by the Credit Documents and otherwise referred to herein or therein shall have been
obtained and remain in effect. Additionally, there shall not exist any judgment, order, injunction
or other restraint issued or filed or a hearing seeking injunctive relief or other restraint
pending or notified prohibiting or imposing materially adverse conditions upon any Credit Event or
the Transaction or the other transactions contemplated by the Credit Documents.

5.08 Litigation. On the Closing Date, no litigation by any entity (private or
governmental) shall be pending or threatened with respect to this Agreement, any other Credit
Document or any documentation executed in connection herewith or therewith or the transactions
contemplated hereby or thereby, or which any Agent or the Required Lenders shall reasonably
determine has had, or could reasonably be expected to have, a Material Adverse Effect.

5.09 [RESERVED].

5.10 Projections; Solvency Certificate. On or prior to the Closing Date, there shall
have been delivered to the Lenders:

(i) projected financial and cash flow statements for the Borrower and its Subsidiaries for the
period from the Closing Date to and including at least December 31, 2010 (the
“Projections”), which Projections (x) shall reflect the forecasted financial condition,
income and expenses and cash flows of the Borrower and its Subsidiaries after giving effect to the
Transaction and the related financing thereof and the other transactions contemplated hereby and
thereby and (y) shall be in form and substance reasonably satisfactory to the Agents and the
Required Lenders; and

(ii) a solvency certificate from the chief financial officer or treasurer of the Borrower in
form and substance satisfactory to the Agents and the Required Lenders, addressed to the Agents and
the Lenders and dated the Closing Date, setting forth the conclusions that, after giving effect to
the Transaction, the Borrower and its Subsidiaries, taken as a whole, are not insolvent and will
not be rendered insolvent by the indebtedness incurred in connection therewith, will not be left
with unreasonably small capital with which to engage in their business and will not have incurred
debts beyond their ability to pay debts as they mature.

5.11 Notice of Borrowing. Prior to the making of each Loan, the Administrative Agent
shall have received a Notice of Borrowing meeting the requirements of Section 1.03.

5.12 No Default; Representations and Warranties. At the time of the incurrence of
Loans on the Closing Date and also after giving effect thereto (i) there shall exist no Default or
Event of Default and (ii) all representations and warranties contained herein and in the other
Credit Documents shall be true and correct in all material respects with the same effect as though
such representations and warranties had been made on the Closing Date (it being understood and
agreed that any representation or warranty which by its terms is made as of a specified date shall
be required to be true and correct in all material respects only as of such specified date).

5.13 Requirements of Law. The incurrence of Loans on the Closing Date does not
violate any Requirement of Law and is not enjoined, temporarily, preliminarily or permanently and
no litigation shall be pending or threatened, which in the good faith judgment of any Agent or the
Required Lenders would enjoin, prohibit or restrain, or impose or result in the imposition of any
material adverse condition upon, the incurrence of the Loans or the Borrower’s obligations with
respect thereto.

The occurrence of the Closing Date and the acceptance of the proceeds of each Loan on the
Closing Date shall constitute a representation and warranty by the Borrower to the Agents and each
of the Lenders that all of the conditions specified in Section 5 are satisfied as of that time.
All of the Notes, certificates, legal opinions and other documents and papers referred to in
Section 5, unless otherwise specified, shall be delivered to the Administrative Agent at the Notice
Office for the account of each of the Lenders and, except for the Notes, in sufficient counterparts
or copies for each of the Lenders and shall be in form and substance reasonably satisfactory to the
Agents and the Required Lenders.

SECTION 6. [RESERVED].

SECTION 7. Representations, Warranties and Agreements. In order to induce the Lenders
to enter into this Agreement and to make the Loans as provided herein, the Borrower makes the
following representations, warranties and agreements, in each case after giving effect to the
Transaction, all of which shall survive the execution and delivery of this Agreement and the Notes
and the making of the Loans, with the occurrence of the Closing Date and the incurrence of the
Loans on the Closing Date being deemed to constitute a representation and warranty that the matters
specified in this Section 7 are true and correct in all material respects on and as of the Closing
Date (it being understood and agreed that any representation or warranty which by its terms is made
as of a specified date shall be required to be true and correct in all material respects only as of
such specified date):

7.01 Existence; Compliance with Law. The Borrower and each of its Subsidiaries (i) is
a real estate investment trust or a corporation, limited liability company or limited partnership,
or a qualified REIT subsidiary as specified herein, duly organized, validly existing and in good
standing under the laws of the jurisdiction of its formation; (ii) is duly qualified as a foreign
corporation, limited liability company, limited partnership or REIT subsidiary and in good standing
under the laws of each jurisdiction where such qualification is necessary, except for failures
which in the aggregate could not reasonably be expected to have a Material Adverse Effect; (iii)
has all requisite corporate, limited liability company, partnership or other power and authority
and the legal right to own, pledge and mortgage its properties, to lease (as lessee) the properties
that it leases as lessee, to lease or sublease (as lessor) the properties it owns and/or leases (as
lessee) and to conduct its business as now or currently proposed to be conducted; (iv) is in
compliance with its declaration of trust or certificate of formation, by-laws, regulations or
partnership or operating agreement or other organizational documents, as appropriate; (v) is in
compliance with all other applicable Requirements of Law except for such non-compliances as in the
aggregate could not reasonably be expected to have a Material Adverse Effect; and (vi) has all
necessary licenses, permits, consents or approvals from or by, has made all necessary filings with,
and has given all necessary notices to, each Governmental Authority having jurisdiction, to the
extent required for such ownership, leasing and conduct, except for licenses, permits, consents or
approvals the failure to obtain, file or give notice of, in the aggregate could not reasonably be
expected to have a Material Adverse Effect.

7.02 Power; Authorization; Enforceable Obligations. (a) The execution, delivery and
performance by the Borrower of the Credit Documents to which it is a party and the consummation of
the transactions contemplated hereby and thereby:

(i) are within the Borrower’s corporate, partnership, limited liability company or trust
powers, as appropriate;

(ii) have been duly authorized by all necessary corporate, partnership, limited liability
company or trust action, as appropriate, including, without limitation, the consent of
stockholders, general and/or limited partners and members where required;

(iii) do not and will not (A) contravene the Borrower’s or any of its Subsidiary’s respective
declaration of trust, certificate of incorporation or formation or by-laws, regulations,
partnership agreement, operating agreement or other comparable governing documents, (B) violate any
other applicable Requirement of Law (including, without limitation, Regulations T, U and X of the
Board of Governors of the Federal Reserve System), or any order or decree of any Governmental
Authority or arbitrator, (C) conflict with or result in the breach of, or constitute a default
under, or result in or permit the termination or acceleration of, any Contractual Obligation of the
Borrower or any of its Subsidiaries or (D) result in the creation or imposition of any Lien upon
any of the Assets of the Borrower or any of its Subsidiaries; and

(iv) do not require the consent of, authorization by, approval of, notice to, or filing or
registration with, any Governmental Authority or any other Person, other than those which have been
obtained or made, and each of which is in full force and effect.

(b) This Agreement and each of the other Credit Documents has been duly executed and delivered
by the Borrower. This Agreement and each other Credit Document constitutes the legal, valid and
binding obligation of the Borrower, enforceable against it in accordance with its terms except to
the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting the enforcement of creditor’s rights and remedies generally.

7.03 Financial Statements; Financial Condition; Undisclosed Liabilities; Projections;
etc. (a) The consolidated financial statements and financial statement schedules of the
Borrower and its Subsidiaries, as of December 31, 2004, 2005 and 2006, filed with the SEC as part
of the Borrower’s annual report on Form 10-K, fairly present in all material respects the
consolidated results of operations of the Borrower and its Subsidiaries for the respective Fiscal
Years ended on such dates, and the consolidated financial position of the Borrower and its
Subsidiaries as at the dates of such balance sheets. Furthermore, the consolidated financial
statements of the Borrower and its Subsidiaries, as at March 31, 2007 and for the three-month
period ended on such date, filed with the SEC as part of the Borrower’s quarterly report on Form
10-Q, fairly present in all material respects the consolidated results of operations of the
Borrower and its Subsidiaries for the three-month period ended on such date, and the consolidated
financial position of the Borrower and its Subsidiaries at the date of such balance sheet. All
such financial statements have been prepared in accordance with GAAP consistently applied, subject
to normal year-end audit adjustments and the absence of footnotes in the case of the March 31, 2007
financial statements.

(b) Since December 31, 2006 (but, for this purpose, assuming that the Transaction had been
consummated on such date), except as otherwise publicly disclosed by the Borrower in a filing with
the SEC after such date, nothing has occurred that has had, or could reasonably be expected to
have, a Material Adverse Effect.

(c) On and as of the Closing Date, after giving effect to the Transaction and to all
Indebtedness (including the Loans) being incurred or assumed and Liens created by the Credit
Parties in connection therewith, (a) the sum of the assets, at a fair valuation, of the Borrower
and its Subsidiaries taken as a whole and the Borrower on a stand-alone basis will exceed their or
its respective debts; (b) the Borrower and its Subsidiaries taken as a whole and the Borrower on a
stand-alone basis have or has not incurred and do or does not intend to incur, and do or does not
believe that they or it will incur, debts beyond their or its ability to pay such debts as such
debts mature; and (c) the Borrower and its Subsidiaries taken as a whole and the Borrower on a
stand-alone basis will have sufficient capital with which to conduct their or its respective
businesses. For purposes of this Section 7.03(c), “debt” means any liability on a claim, and
“claim” means (i) right to payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable,
secured, or unsecured or (ii) right to an equitable remedy for breach of performance if such breach
gives rise to a payment, whether or not such right to an equitable remedy is reduced to judgment,
fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured.

(d) Except as disclosed in the financial statements delivered pursuant to Section 7.03(a) and
the Indebtedness incurred in connection with the Transaction, there were as of the Closing Date no
liabilities or obligations with respect to the Borrower or any of its Subsidiaries of any nature
whatsoever (whether absolute, accrued, contingent or otherwise and whether or not due) which,
either individually or in aggregate, has had or could reasonably be expected to have a Material
Adverse Effect. As of the Closing Date, the Borrower does not know of any basis for the assertion
against it or any of its Subsidiaries of any liability or obligation of any nature whatsoever that
is not disclosed in the financial statements delivered pursuant to Section 7.03(a) which, either
individually or in the aggregate, has had or could reasonably be expected to have a Material
Adverse Effect.

(e) On and as of the Closing Date, the Projections have been prepared in good faith and are
based on reasonable assumptions under the then known facts and circumstances, and there are no
statements or conclusions in any of the Projections which are based upon or include information
known to the Borrower to be misleading in any material respect or which knowingly fail to take into
account material information regarding the matters reported therein; it being understood, however,
that nothing contained herein shall constitute a representation that the results forecasted in such
Projections will in fact be achieved. On the Closing Date, the Borrower believes that the
Projections are reasonable and attainable based upon the then known facts and circumstances, it
being understood that nothing contained herein shall constitute a representation that the results
forecasted in such Projections will in fact be achieved.

7.04 Litigation. There are no pending or, to the best knowledge of the Borrower,
threatened actions, investigations or proceedings affecting the Borrower, any of its Subsidiaries
or any other Credit Party, or any of their respective Assets or revenues before any court,
Governmental Authority or arbitrator, that in the aggregate have had, or could reasonably be
expected to have, a Material Adverse Effect. The performance of any action by any Credit Party
required or contemplated by any of the Credit Documents is not, to the best knowledge of the
Borrower, restrained or enjoined (either temporarily, preliminarily or permanently), and, to the
best knowledge of the Borrower, no material adverse condition has been imposed by any Governmental
Authority or arbitrator upon any of the foregoing transactions contemplated by the aforementioned
documents.

7.05 True and Complete Disclosure. All factual information (other than the
Projections, which are covered in Section 7.03(e)) (taken as a whole) furnished by the Borrower in
writing to the Administrative Agent or any Lender (including, without limitation, all information
contained in the Credit Documents), is, and all other such factual information (taken as a whole)
hereafter furnished by or on behalf of the Borrower in writing to the Administrative Agent or any
Lender will be, true and accurate in all material respects on the date as of which such information
is dated or certified and not incomplete by omitting to state any fact necessary to make such
information (taken as a whole) not misleading in any material respect at such time in light of the
circumstances under which such information was provided.

7.06 Use of Proceeds. (a) The proceeds of the Loans shall be utilized by the
Borrower on the Closing Date to finance the Revolver Repayment, to the pay the fees and expenses
incurred in connection with the Transaction and for other general corporate purposes.

(b) Neither the making of any Loan nor the use of the proceeds thereof nor the occurrence of
any other Credit Event will violate or be inconsistent with the provisions of Regulation T, U or X.

(c) On the Closing Date (after giving effect to the consummation of the Transaction), not more
than 25% of the value of the assets of the Borrower and its Subsidiaries taken as a whole will
constitute Margin Stock.

7.07 Taxes. All federal, state, local and foreign tax returns, reports and statements
(collectively, the “Tax Returns”) required to be filed by the Borrower and its Subsidiaries
or any Tax Affiliate thereof have been filed with the appropriate governmental agencies in all
jurisdictions in which such Tax Returns are required to be filed. All such Tax Returns are true
and correct in all material respects, and all taxes, charges and other impositions due and payable
have been timely paid prior to the date on which any fine, penalty, interest, late charge or loss
may be added thereto for non-payment thereof, except where contested in good faith and by
appropriate proceedings if (i) adequate reserves therefor have been established on the books of the
Borrower, such Subsidiary or such Tax Affiliate in conformity with GAAP and (ii) all such
non-payments in the aggregate have, and will have, no Material Adverse Effect. Proper and accurate
amounts have been withheld by the Borrower and each of its Subsidiaries and Tax Affiliates from
their respective employees for all periods in full and complete compliance with the tax, social
security and unemployment withholding provisions of applicable federal, state, local and foreign
law and such withholdings have been timely paid to the respective Governmental Authorities. Except
as otherwise disclosed on Schedule 7.07, none of the Borrower or any of its Subsidiaries or Tax
Affiliates has (i) executed or filed with the U.S. Internal Revenue Service any agreement or other
document extending, or having the effect of extending, the period for assessment or collection of
any charges; (ii) agreed or been requested to make any adjustment under Section 481(a) of the Code
by reason of a change in accounting method or otherwise; or (iii) any obligation under any written
tax sharing agreement.

7.08 Compliance with ERISA. (a) Except as would not result in any material
liability, each Plan (and each related trust, insurance contract or fund) is in compliance with its
terms and, except as would not result in any material liability, with all applicable laws,
including, without limitation, ERISA and the Code; except as would not result in a material
liability, each Plan (and each related trust, if any) which is intended to be qualified under
Section 401(a) of the Code has received or is in the process of seeking a determination letter from
the U.S. Internal Revenue Service to the effect that it meets the requirements of Sections 401(a)
and 501(a) of the Code; except as would not result in a material liability, no Reportable Event has
occurred during the last 5 years; except as would not result in a material liability, no Plan which
is a multiemployer plan (as defined in Section 4001(a)(3) of ERISA) is insolvent or in
reorganization; except as would not result in a material liability, no Plan which is not a
multiemployer plan (as defined in Section 4001(a)(3) of ERISA) has an Unfunded Current Liability;
except as would not result in a material liability, no Plan which is subject to Section 412 of the
Code or Section 302 of ERISA has an accumulated funding deficiency, within the meaning of such
sections of the Code or ERISA, or has applied for or received a waiver of an accumulated funding
deficiency or an extension of any amortization period, within the meaning of Section 412 of the
Code or Sections 303 or 304 of ERISA; except as would not result in a material liability, all
contributions required to be made with respect to a Plan by the Borrower or a Subsidiary of the
Borrower or an ERISA Affiliate have been timely made; neither the Borrower nor any Subsidiary of
the Borrower nor any ERISA Affiliate has incurred any liability (including any indirect, contingent
or secondary liability) to or on account of a Plan pursuant to Section 409, 502(i), 502(l), 515,
4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971 or 4975 of the Code
or expects to incur any such liability under any of the foregoing sections with respect to any Plan
which could reasonably be expected to result in a Material Adverse Effect; no condition exists
which presents a risk to the Borrower or any Subsidiary of the Borrower or any ERISA Affiliate of
incurring a liability to or on account of a Plan pursuant to the foregoing provisions of ERISA and
the Code which could reasonably be expected to result in a Material Adverse Effect; no proceedings
have been instituted to terminate or appoint a trustee to administer any Plan which is subject to
Title IV of ERISA which could reasonably be expected to result in a Material Adverse Effect; except
as would not result in any material liability, no action, suit, proceeding, hearing, audit or
investigation with respect to the administration, operation or the investment of assets of any Plan
(other than routine claims for benefits) is pending, expected or threatened; using actuarial
assumptions and computation methods consistent with Part 1 of subtitle E of Title IV of ERISA, the
aggregate liabilities of the Borrower and its Subsidiaries and their ERISA Affiliates to all Plans
which are multiemployer plans (as defined in Section 4001(a)(3) of ERISA) in the event of a
complete withdrawal therefrom, as of the close of the most recent fiscal year of each such Plan
ended prior to the Closing Date, would not exceed an amount which would have a Material Adverse
Effect; except as would not result in any material liability, each group health plan (as defined in
Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) which covers or has covered employees
or former employees of the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate has at
all times been operated in compliance with the provisions of Part 6 of subtitle B of Title I of
ERISA and Section 4980B of the Code; except as would not result in a material liability, each group
health plan (as defined in 45 Code of Federal Regulations Section 160.103) which covers or has
covered employees or former employees of the Borrower, any Subsidiary of the Borrower or any ERISA
Affiliate has at all times been operated in compliance with the provisions of the Health Insurance
Portability and Accountability Act of 1996 and the regulations promulgated thereunder; except as
would not result in a material liability, no lien imposed under the Code or ERISA on the assets of
the Borrower or any Subsidiary of the Borrower or any ERISA Affiliate exists or is likely to arise
on account of any Plan; and the Borrower and its Subsidiaries do not maintain or contribute to any
employee welfare benefit plan (as defined in Section 3(1) of ERISA) which provides benefits to
retired employees or other former employees (other than as required by Section 601 of ERISA) or any
Plan the obligations with respect to which could reasonably be expected to have a Material Adverse
Effect. Notwithstanding the foregoing, with respect to Plans that are multiemployer plans (as
defined in Section 4001(a)(3) of ERISA) and Plans that are not currently maintained by the
Borrower, any Subsidiary of the Borrower or any ERISA Affiliate, the representations and warranties
in this Section 7.08 are made to the best knowledge of the Borrower.

(b) Except as would not result in any material liability, each Foreign Pension Plan has been
maintained in compliance with its terms and with the requirements of any and all applicable laws,
statutes, rules, regulations and orders and has been maintained, where required, in good standing
with applicable regulatory authorities. Except as would not result in a material liability, all
contributions required to be made with respect to a Foreign Pension Plan have been timely made.
Except as would not result in any material liability, neither the Borrower nor any of its
Subsidiaries has incurred any obligation in connection with the termination of or withdrawal from
any Foreign Pension Plan. The present value of the accrued benefit liabilities (whether or not
vested) under each Foreign Pension Plan, determined as of the end of the most recently ended Fiscal
Year of the Borrower on the basis of actuarial assumptions, each of which is reasonable, did not
exceed the current value of the assets of such Foreign Pension Plan allocable to such benefit
liabilities to an extent which could reasonably be expected to have a Material Adverse Effect.

(c) The assets of the Borrower and each other Credit Party do not constitute “plan assets”
within the meaning of DOL Regulation Section 2510.3-101.

7.09 Property. Each of the Borrower and each of its Subsidiaries has good and
indefeasible title to all material properties owned by it, and a valid leasehold interest in all
material property leased by it, including (in each case) all material property reflected in the
most recent historical balance sheet referred to in Section 7.03(a) (except as sold or otherwise
disposed of since the date of such balance sheet in the ordinary course of business or as otherwise
permitted by the terms of this Agreement), free and clear of all Liens, other than Permitted Liens.

7.10 [RESERVED].

7.11 Compliance with Statutes, etc. The Borrower and each of its Subsidiaries is in
compliance with all Requirements of Law, except such noncompliances as would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

7.12 Investment Company Act. Neither the Borrower nor any of its Subsidiaries is an
“investment company” or a company “controlled” by an “investment company,” within the meaning of
the Investment Company Act of 1940, as amended.

7.13 Public Utility Holding Company Act. Neither any Credit Party nor any of its
Subsidiaries is a “holding company,” or a “subsidiary company” of a “holding company,” or an
“affiliate” of a “holding company” or of a “subsidiary company” of a “holding company” within the
meaning of the Public Utility Holding Company Act of 1935, as amended.

7.14 Environmental Matters. (a) The Borrower and each of its Subsidiaries have
complied with, and on the Closing Date are in compliance with, all applicable Environmental Laws
and the requirements of any permits issued under such Environmental Laws. There are no pending or,
to the best knowledge of the Borrower, threatened Environmental Claims against the Borrower or any
of its Subsidiaries (including any such Environmental Claim arising out of the ownership or
operation by the Borrower or any of its Subsidiaries of any Real Property no longer owned or
operated by the Borrower or any of its Subsidiaries) or any Real Property owned or operated by the
Borrower or any of its Subsidiaries. There are no facts, circumstances, conditions or occurrences
with respect to the business or operations of the Borrower or any of its Subsidiaries or any Real
Property owned or operated by the Borrower or any of its Subsidiaries (including any Real Property
formerly owned or operated by the Borrower or any of its Subsidiaries but no longer owned or
operated by the Borrower or any of its Subsidiaries) or, to the best knowledge of the Borrower, any
real property adjoining or adjacent to any such Real Property that would reasonably be expected (i)
to form the basis of an Environmental Claim against the Borrower or any of its Subsidiaries or any
Real Property owned or operated by the Borrower or any of its Subsidiaries, or (ii) to cause any
Real Property owned or operated by the Borrower or any of its Subsidiaries to be subject to any
restrictions imposed by Environmental Laws on the nature of the use or the transferability of such
Real Property by the Borrower or any of its Subsidiaries under any applicable Environmental Law.

(b) Hazardous Materials have not been generated, used, treated or stored on, or transported to
or from, any Real Property owned or operated by the Borrower or any of its Subsidiaries where such
generation, use, treatment, storage or transportation has violated or would reasonably be expected
to violate any applicable Environmental Law. Hazardous Materials have not been Released on or from
any Real Property owned or operated by the Borrower or any of its Subsidiaries where such Release
has violated or would reasonably be expected to violate any applicable Environmental Law.

(c) Notwithstanding anything to the contrary in preceding clauses (a) and (b) of this Section
7.14, the representations made in preceding clauses (a) and (b) of this Section 7.14 shall not be
untrue unless the aggregate effect of all violations, Environmental Claims, facts, circumstances,
conditions, occurrences, restrictions, failures and noncompliances subject to or governed by
Environmental Laws would reasonably be expected to have a Material Adverse Effect.

7.15 Labor Relations. Neither the Borrower nor any of its Subsidiaries is engaged in
any unfair labor practice that could reasonably be expected to have a Material Adverse Effect.
There is (i) no unfair labor practice complaint pending against the Borrower or any of its
Subsidiaries or, to the best knowledge of the Borrower, threatened against any of them, before the
National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under
any collective bargaining agreement is so pending against the Borrower or any of its Subsidiaries
or, to the best knowledge of the Borrower, threatened against any of them, (ii) no strike, labor
dispute, slowdown or stoppage pending against the Borrower or any of its Subsidiaries or, to the
best knowledge of the Borrower, threatened against the Borrower or any of its Subsidiaries and
(iii) to the best knowledge of the Borrower, no union representation question existing with respect
to the employees of the Borrower or any of its Subsidiaries and, to the best knowledge of the
Borrower, no union organizing activities are taking place, except (with respect to any matter
specified in clause (i), (ii) or (iii) above, either individually or in the aggregate) such as
could not reasonably be expected to have a Material Adverse Effect.

7.16 Intellectual Property, Licenses, Franchises and Formulas. The Borrower and each
of its Subsidiaries owns, or has the right to use, all the patents, trademarks, permits, service
marks, trade names, copyrights, licenses, franchises, proprietary information (including, but not
limited to, rights in computer programs and databases) and formulas, or other rights with respect
to the foregoing, or has obtained assignments of all leases and other rights of whatever nature,
necessary for the present conduct of its business, without any known conflict with the rights of
others which, or the failure to obtain which, as the case may be, could reasonably be expected to
result in a Material Adverse Effect.

7.17 Scheduled Existing Indebtedness, etc. (a) Schedule 7.17 sets forth a true and
complete list of all Indebtedness of the Borrower and each of its Subsidiaries as of the Closing
Date and which is to remain outstanding after giving effect to the Transaction (excluding the
Loans, the “Scheduled Existing Indebtedness”), in each case, showing the aggregate
principal amount thereof and the name of the respective borrower. Part I of Schedule 7.17 lists
all Scheduled Existing Indebtedness owed to any Person other than the Credit Parties and their
Subsidiaries (collectively, “Third Party Existing Indebtedness”) and Part II of Schedule
7.17 lists all Scheduled Existing Indebtedness (with such normal fluctuations in the principal
amount thereof since the date of such Schedule) owed to any other Credit Party or any Subsidiary
thereof (the “Intercompany Existing Indebtedness”).

(b) As of the Closing Date, the Existing Senior Notes are not guaranteed by any Person.

SECTION 8. Affirmative Covenants. The Borrower hereby covenants and agrees that on
and after the Effective Date and until the Loans and Notes, together with interest, Fees and all
other Obligations (other than contingent indemnification obligations) incurred hereunder and
thereunder, are paid in full:

8.01 Information Covenants. The Borrower will furnish to the Lenders:

(a) Quarterly Financial Statements. Within 55 days after the close of the first three
quarterly accounting periods in each Fiscal Year of the Borrower, (i) the consolidated balance
sheet of the Borrower and its Subsidiaries as at the end of such quarterly accounting period, and
the related consolidated statements of income and retained earnings and statement of cash flows for
such quarterly accounting period and for the elapsed portion of the Fiscal Year ended with the last
day of such quarterly accounting period, in each case setting forth comparative figures for the
related periods in the prior Fiscal Year, all of which shall be certified by the chief financial
officer of the Borrower (or by the Senior Vice President and Treasurer or Senior Vice President and
Corporate Controller of the Borrower), subject only to normal year-end audit adjustments and the
absence of footnotes and (ii) management’s discussion and analysis of the important operational and
financial developments during the quarterly and year-to-date periods.

(b) Annual Financial Statements. Within 100 days after the close of each Fiscal Year
of the Borrower, (i) the consolidated balance sheet of the Borrower and its Subsidiaries as at the
end of such Fiscal Year, and the related consolidated statements of income and retained earnings
and of cash flows for such Fiscal Year setting forth comparative figures for the preceding Fiscal
Year and certified (without qualification) by independent certified public accountants of
recognized national standing reasonably acceptable to the Administrative Agent, together with a
report of such accounting firm stating that in the course of its regular audit of the respective
financial statements, which audit was conducted in accordance with generally accepted auditing
standards, such accounting firm obtained no knowledge of any Default or Event of Default which has
occurred and is continuing or, if in the opinion of such accounting firm such a Default or Event of
Default has occurred and is continuing, a statement as to the nature thereof and (ii) management’s
discussion and analysis of the important operational and financial developments during the
respective Fiscal Year.

(c) Budgets. (x) On March 1 of each Fiscal Year, a budget for such Fiscal Year
prepared by the Borrower (on a consolidated basis) in reasonable detail and in form reasonably
satisfactory to the Administrative Agent and accompanied by the statement of a senior financial
officer of the Borrower to the effect that, to the best of his knowledge, the budget is a
reasonable estimate for the period covered thereby.

(d) Officer’s Certificates. At the time of the delivery of the financial statements
provided for in Sections 8.01(a) and (b), a certificate of the chief financial officer of the
Borrower (or by the Senior Vice President and Treasurer or Senior Vice President and Corporate
Controller of the Borrower), in form satisfactory to the Agents, to the effect that, to the best of
such officer’s knowledge, no Default or Event of Default has occurred and is continuing or, if any
Default or Event of Default has occurred and is continuing, specifying the nature and extent
thereof, which certificate shall (x) set forth in reasonable detail the calculations required to
establish whether the Borrower and its Subsidiaries were in compliance with the provisions of
Sections 4.02, 9.01, 9.04 and 9.05 at the end of such fiscal quarter or Fiscal Year, as the case
may be, (y) set forth its Unsecured Debt Ratings and (z) set forth the calculations required to
establish the Applicable Margin.

(e) Notice of Default or Litigation. Promptly, and in any event within five Business
Days (or ten Business Days in the case of following clause (ii)) after any Authorized Officer of
any Credit Party obtains actual knowledge thereof, notice of (i) the occurrence of any event which
constitutes a Default or an Event of Default and (ii) any litigation or governmental investigation
or proceeding pending (x) against any Credit Party or any of its Subsidiaries which could
reasonably be expected to have a Material Adverse Effect, (y) with respect to any material
Indebtedness of any Credit Party or any of its Subsidiaries or (z) with respect to any Credit
Document.

(f) Environmental Matters. Promptly upon, and in any event within fifteen Business
Days after, an Authorized Officer of any Credit Party obtains knowledge thereof, notice of one or
more of the following matters subject to or governed by Environmental Laws (in each case,
describing in reasonable detail the nature of the respective Environmental Matter and the
respective Credit Party’s or Subsidiary’s intended response thereto), unless such Environmental
Matters would not, individually or when aggregated with all other such Environmental Matters, be
reasonably expected to have a Material Adverse Effect:

(i) any pending or threatened Environmental Claim against such Credit Party or any of
its Subsidiaries or any Real Property owned or operated by such Credit Party or any of its
Subsidiaries;

(ii) any condition or occurrence on or arising from any Real Property owned or operated
by such Credit Party or any of its Subsidiaries that (a) results in noncompliance by such
Credit Party or any of its Subsidiaries with any applicable Environmental Law or (b) would
reasonably be expected to form the basis of an Environmental Claim against such Credit Party
or any of its Subsidiaries or any such Real Property;

(iii) any condition or occurrence on any Real Property owned or operated by such Credit
Party or any of its Subsidiaries that could reasonably be expected to cause such Real
Property to be subject to any restrictions on the nature of the use or transferability by
the respective Credit Party or any of its Subsidiaries of such Real Property under any
Environmental Law; and

(iv) the taking of any removal or remedial action in response to the actual or alleged
presence of any Hazardous Materials on any Real Property owned or operated by such Borrower
or any of its Subsidiaries as required by any Environmental Law or any Governmental
Authority (with the items described in this clause (iv) and above in preceding clauses (i)
through (iii) being herein called, collectively, “Environmental Matters”).

In addition, the Borrower or any of its Subsidiaries will provide the Lenders with copies of all
material communications between the Borrower or any of its Subsidiaries and any Governmental
Authority relating to Environmental Laws which could reasonably be expected to have a Material
Adverse Effect.

(g) Other Information. From time to time, such other information or documents
(financial or otherwise) with respect to the Borrower or any of its Subsidiaries as either Agent or
any Lender may reasonably request.

(h) Amendments to Existing Credit Agreement. Promptly upon the execution and delivery
thereof by the Borrower, any amendment, waiver, consent or other modification of the Existing
Credit Agreement, each as contemplated by Section 13.12(c).

Documents required to be delivered pursuant to Section 8.01(a) or (b) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which
the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the
Internet at the website address furnished in writing to the Lenders; or (ii) on which such
documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which
each Lender and the Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (i) the Borrower shall
deliver paper copies of such documents to the Administrative Agent or any Lender that requests the
Borrower to deliver such paper copies until a written request to cease delivering paper copies is
given by the Administrative Agent or such Lender and (ii) the Borrower shall notify the
Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such
documents and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every
instance the Borrower shall be required to provide paper copies of the compliance certificates
required by Section 8.01(d) to the Administrative Agent. Except for such compliance certificates,
the Administrative Agent shall have no obligation to request the delivery or to maintain copies of
the documents referred to above, and in any event shall have no responsibility to monitor
compliance by the Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such documents.

The Borrower hereby acknowledges that (a) the Administrative Agent will make available to the
Lenders materials and/or information provided by or on behalf of the Borrower hereunder
(collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or
another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a
“Public Lender”) may have personnel who do not wish to receive material non-public
information with respect to the Borrower or its Affiliates, or the respective securities of any of
the foregoing, and who may be engaged in investment and other market-related activities with
respect to such Persons’ securities. The Borrower hereby agrees that (w) all Borrower Materials
that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC”
which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page
thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have
authorized the Administrative Agent and the Lenders to treat such Borrower Materials as not
containing any material non-public information with respect to the Borrower or its securities for
purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall be treated as set
forth in Section 13.17); (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated “Public Investor;” and (z) the
Administrative Agent shall be entitled to treat any Borrower Materials that are not marked “PUBLIC”
as being suitable only for posting on a portion of the Platform not designated “Public Investor.”

8.02 Books, Records and Inspections. The Borrower will, and will cause each
Subsidiary to, keep proper books of record and accounts in which full, true and correct entries in
conformity with generally accepted accounting principles and all requirements of law shall be made
of all dealings and transactions in relation to its business and activities. Upon prior notice,
the Borrower will, and will cause each Subsidiary to, permit officers and designated
representatives of any Agent or any Lender to visit and inspect, during regular business hours and
under guidance of officers of the Borrower or such Subsidiary, any of the properties of the
Borrower or such Subsidiary, and to examine the books of account of the Borrower or such Subsidiary
and discuss the affairs, finances and accounts of the Borrower or such Subsidiary with, and be
advised as to the same by, its and their officers and independent accountants, all at such
reasonable times and intervals and to such reasonable extent as such Agent or such Lender may
request.

8.03 Maintenance of Insurance. The Borrower will, and will cause each of its
Subsidiaries to, maintain (either in the name of the Borrower or in such Subsidiary’s own name)
with financially sound and responsible insurance companies, insurance in such types and in at least
such amounts and against at least such risks (and with such risk retention) as are usually insured
against by companies of established repute engaged in the same or a similar business (including, if
so required, terrorism insurance) and as is otherwise reasonably acceptable to the Administrative
Agent, and will furnish to the Lenders, upon request from the Administrative Agent, information
presented in reasonable detail as to the insurance so carried. Notwithstanding the foregoing, the
Borrower may self-insure with respect to such risks with respect to which companies of established
repute engaged in the same or similar business in the same general area usually self-insure;
provided that the terms of such self-insurance (including any reserves established in
connection therewith) shall be reasonably acceptable to the Administrative Agent.

8.04 Corporate Franchises. The Borrower will, and will cause each of its Subsidiaries
to, do or cause to be done, all things necessary to preserve and keep in full force and effect its
existence and its material rights, franchises, licenses and patents; provided,
however, that (i) nothing in this Section 8.04 shall prevent (x) transactions permitted
under Section 9.02 or (y) the liquidation of any Subsidiary (which Subsidiary is not itself a
Credit Party) if the Borrower determines that such liquidation could not reasonably be expected to
have a Material Adverse Effect and (ii) neither the Borrower nor any such Subsidiary shall be
required to preserve any right, franchise, license or patent its existence (other than the
corporate or other applicable existence of each Credit Party) or if, in the good faith business
judgment of the Borrower, the termination of or failure to preserve and keep in full force and
effect such existence, right, franchise, license or patent would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

8.05 Compliance with Statutes, etc. (a) The Borrower will, and will cause each of
its Subsidiaries to, comply with all Requirements of Law (including, without limitation, all
Environmental Laws and the rules and regulations thereunder), except such noncompliances as would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Neither the Borrower nor any of its Subsidiaries will generate, use, treat, store, Release or
dispose of, or permit the generation, use, treatment, storage, Release or disposal of Hazardous
Materials on any Real Property now or hereafter owned or operated by the Borrower or any of its
Subsidiaries, or transport or permit the transportation of Hazardous Materials to or from any such
Real Property, except for Hazardous Materials generated, used, treated, stored, Released or
disposed of at, or transported to or from, any such Real Properties in compliance in all material
respects with all applicable Environmental Laws and as is reasonably required in connection with
the operation, use and maintenance of the business or operations of the Borrower or any of its
Subsidiaries.

(b) Within 5 Business Days after the Borrower is required by applicable law, statute, rule or
regulation, the Borrower shall file (or cause to be filed) with the SEC all reports, financial
information and certifications required by applicable law, statute, rule or regulation.

8.06 ERISA. As soon as reasonably practicable and, in any event, within fifteen (15)
days after the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate knows or has reason
to know of the occurrence of any of the following, the Borrower will deliver, or cause to be
delivered, to the Lenders a certificate of the chief financial officer, treasurer or controller of
the Borrower setting forth the reasonable details as to such occurrence and the action, if any,
that the Borrower, such Subsidiary or such ERISA Affiliate is required or proposes to take,
together with any notices required or proposed to be given or filed by the Borrower, such
Subsidiary, the Plan Administrator or such ERISA Affiliate to or with the PBGC or any other
government agency, or a Plan participant and any notices received by the Borrower, such Subsidiary
or ERISA Affiliate from the PBGC or any other government agency, or a Plan participant with respect
thereto: that a Reportable Event has occurred (except to the extent that the Borrower has
previously delivered to the Lenders a notice (if any) concerning such event pursuant to the next
clause hereof); that a contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan
subject to Title IV of ERISA is subject to the advance reporting requirement of PBGC Regulation
Section 4043.61 (without regard to subparagraph (b)(1) thereof), and an event described in
subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 is reasonably
expected to occur with respect to such Plan within the following 30 days; that an accumulated
funding deficiency, within the meaning of Section 412 of the Code or Section 302 of ERISA, has been
incurred or an application may reasonably be expected to be or has been made for a waiver or
modification of the minimum funding standard (including any required installment payments) or an
extension of any amortization period under Section 412 of the Code or Section 303 or 304 of ERISA
with respect to a Plan; that any contribution required to be made by the Borrower or a Subsidiary
of the Borrower or an ERISA Affiliate with respect to a Plan or Foreign Pension Plan has not been
timely made; that a Plan has been or may be terminated, reorganized, partitioned or declared
insolvent under Title IV of ERISA; that a Plan has an Unfunded Current Liability; that proceedings
may reasonably be expected to be or have been instituted to terminate or appoint a trustee to
administer a Plan which is subject to Title IV of ERISA; that a proceeding has been instituted
pursuant to Section 515 of ERISA to collect a delinquent contribution to a Plan; that the Borrower,
any Subsidiary of the Borrower or any ERISA Affiliate will or could reasonably be expected to incur
any material increase in liability (including any indirect, contingent, or secondary liability) to
or on account of the termination of or withdrawal from a Plan under Section 4062, 4063, 4064, 4069,
4201, 4204 or 4212 of ERISA or with respect to a Plan under Section 401(a)(29), 4971, 4975 or 4980
of the Code or Section 409 or 502(i) or 502(l) of ERISA or with respect to a group health plan (as
defined in Section 607(1) of ERISA, Section 4980B(g)(2) of the Code or 45 Code of Federal
Regulations Section 160.103) under Section 4980B of the Code and/or the Health Insurance
Portability and Accountability Act of 1996; or that the Borrower or any Subsidiary of the Borrower
could reasonably be expected to incur any material increase in liability pursuant to any employee
welfare benefit plan (as defined in Section 3(1) of ERISA) that provides benefits to retired
employees or other former employees (other than as required by Section 601 of ERISA) or any Plan or
any Foreign Pension Plan. The Borrower will deliver to such Lender (i) upon the request of such
Lender, a complete copy of the annual report (on U.S. Internal Revenue Service Form 5500-series) of
each Plan which is not a multiemployer plan (as defined in Section 4001(a)(3) of ERISA) (including,
to the extent required, the related financial and actuarial statements and opinions and other
supporting statements, certifications, schedules and information) required to be filed with the
U.S. Internal Revenue Service and (ii) copies of any records, documents or other information that
must be furnished to the PBGC or any other governmental agency with respect to any Plan pursuant to
Section 4010 of ERISA. In addition to any certificates or notices delivered to the Lenders
pursuant to the first sentence hereof, copies of any records, documents or other information
required to be furnished to the PBGC or any other governmental agency, and any material notices
received by the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate with respect to any
Plan or Foreign Pension Plan shall be delivered to the Lenders no later than fifteen (15) days
after the date such records, documents, and/or information has been furnished to the PBGC or any
other governmental agency or such notice has been received by the Borrower, any Subsidiary or any
ERISA Affiliate, as applicable. Notwithstanding the foregoing, no statement or notice described in
this Section 8.06 shall be required to be provided unless the event or events to which such
statement or notice relate could individually or in the aggregate be expected to result in
liability to the Borrower, its Subsidiaries and their ERISA Affiliates in excess of $5,000,000.

8.07 End of Fiscal Years; Fiscal Quarters. The Borrower will cause (i) each of its,
and each of its Subsidiaries’, Fiscal Years to end on December 31 of each year and (ii) each of
its, and each of its Subsidiaries’, fiscal quarters to end on dates which are consistent with a
Fiscal Year ending December 31.

8.08 Performance of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, perform all of its obligations under the terms of each mortgage, indenture,
security agreement and other debt instrument by which it is bound, except such non-performances as
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

8.09 Maintenance of Properties. The Borrower will, and will cause each of its
Subsidiaries to, keep all property necessary to the business of the Borrower and each such
Subsidiary in good working order and condition, ordinary wear and tear excepted, except such
non-compliances with the foregoing as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

8.10 [RESERVED].

8.11 Payment of Taxes. The Borrower will, and will cause each of its Subsidiaries to,
pay and discharge, or cause to be paid and discharged, all taxes, assessments and governmental
charges or levies imposed upon it or upon its income or profits, or upon any properties belonging
to it, prior to the date on which penalties attach thereto, and all lawful claims which, if unpaid,
might become a lien not otherwise permitted under Section 9.01(i); provided that neither
the Borrower nor any of its Subsidiaries will be required to pay any such tax, assessment, charge,
levy or claim which (x) is being contested in good faith and by appropriate proceedings if it has
maintained adequate reserves with respect thereto in accordance with generally accepted accounting
principles and (y) would not reasonably be expected to have a Material Adverse Effect.

8.12 Further Assurances. If at any time any Domestic Subsidiary of the Borrower
becomes a “DRLB Guarantor” under, and as defined in, the Existing Credit Agreement or otherwise
guarantees the obligations of the Borrower under the Existing Credit Agreement, such Domestic
Subsidiary shall (x) execute and deliver to the Administrative Agent a Subsidiaries Guaranty in the
form of Exhibit G (as amended, modified and/or supplemented from time to time, each a
“Subsidiaries Guaranty”) and (y) execute and deliver, or cause to be executed and
delivered, all other relevant documentation of the type described in Section 5 as such Subsidiary
would have had to deliver if such Subsidiary were a Credit Party on the Closing Date (including
officer’s certificate and opinions of counsel requested by the Administrative Agent).

SECTION 9. Negative Covenants. The Borrower hereby covenants and agrees that on and
after the Effective Date and until the Loans and Notes, together with interest, Fees and all other
Obligations (other than contingent indemnification obligations) incurred hereunder and thereunder,
are paid in full:

9.01 Liens. The Borrower will not, nor will permit any of its Subsidiaries to,
create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets
(real or personal, tangible or intangible) of the Borrower or any of its Subsidiaries, whether now
owned or hereafter acquired, or sell any such property or assets subject to an understanding or
agreement, contingent or otherwise, to repurchase or leaseback such property or assets (including
sales of accounts receivable with recourse to the Borrower or any of its Subsidiaries), or assign
any right to receive income or permit the filing of any financing statement under the UCC or any
other similar notice of Lien under any similar recording or notice statute; provided that
the provisions of this Section 9.01 shall not prevent the creation, incurrence, assumption or
existence of the following (Liens described below are herein referred to as “Permitted
Liens”):

(i) inchoate Liens for taxes, assessments or governmental or quasi-governmental charges
or levies not yet due and payable or Liens for taxes, assessments or governmental or
quasi-governmental charges or levies being contested in good faith and by appropriate
proceedings for which adequate reserves have been established in accordance with generally
accepted accounting principles;

(ii) Liens in respect of property or assets of the Borrower or any of its Subsidiaries
which were incurred in the ordinary course of business and which (x) do not secure
Indebtedness, (y) either (1) do not in the aggregate materially detract from the value of
the respective property or assets or materially impair the use thereof in the operation of
the business of the Borrower or such Subsidiary or (2) are being contested in good faith by
appropriate proceedings, which proceedings have the effect of preventing the forfeiture or
sale of the property or assets subject to any such Lien and (z) do not secure obligations in
excess of $75,000,000 at any time;

(iii) Liens in existence on the Closing Date which are listed, and the property subject
thereto described, in Schedule 9.01 (“Existing Liens”), and giving effect to any
renewals, replacements and extensions of such Liens, in each case so long as (x) the
principal amount of the obligations secured thereby is not increased as a result thereof
(except to the extent any such incremental obligations are independently justified under
(and applied as a utilization of the basket described in) Section 9.01(xiii) below) and (y)
such renewals, replacements and extensions do not result in Liens applying to any Assets
which are not already subject to the Liens securing the respective obligations being
renewed, replaced or extended;

(iv) licenses, leases, sublicenses or subleases granted to other Persons not materially
interfering with the conduct of the business of any Credit Party and its Subsidiaries taken
as a whole;

(v) any Lien on any asset of the Borrower or any of its Subsidiaries (I) subject to
Capitalized Lease Obligations or (II) securing other Indebtedness incurred or assumed for
the purpose of financing all or any part of the cost of acquiring or constructing such asset
(it being understood that, for this purpose, the acquisition of a Person is also an
acquisition of the assets of such Person); provided that (x) the Lien encumbering
the asset or assets giving rise to such Capitalized Lease Obligation or other Indebtedness,
as the case may be, does not encumber any other asset of the Borrower or any Subsidiary of
the Borrower and (y) except in the case of a Lien securing Capitalized Lease Obligations,
any such Lien attaches to such asset concurrently with, or within 180 days after, the
acquisition thereof, or such longer period, not to exceed 12 months, due to the Borrower’s
or its respective Subsidiaries’ inability to retain the requisite governmental approvals
with respect to such acquisition; provided further, that, in the case of any asset
constituting Real Property, (i) the Lien attaches within 12 months after the latest of the
acquisition thereof, the completion of construction thereon or the commencement of full
operation thereof and (ii) the Indebtedness so secured does not exceed the sum of (x) the
purchase price of such Real Property plus (y) the costs of such construction;

(vi) easements, rights-of-way, restrictions, encroachments and other similar charges or
encumbrances, and minor title deficiencies, in each case not securing Indebtedness and,
except in the case of those arising out of a governmental taking or threatened governmental
taking, not materially interfering with the conduct of the business of the Borrower or any
of its Subsidiaries;

(vii) Liens arising from precautionary UCC financing statement filings regarding
operating leases entered into by the Borrower or any of its Subsidiaries in the ordinary
course of business;

(viii) Liens arising out of the existence of judgments, decrees or awards not
constituting an Event of Default under Section 10.08, provided that no cash or
property is deposited or delivered to secure the respective judgment or award (or any appeal
bond in respect thereof);

(ix) statutory and common law landlords’ liens under leases to which the Borrower or
any of its Subsidiaries is a party;

(x) Liens on property or assets acquired by the Borrower or any of its Subsidiaries, or
on property or assets of a Subsidiary acquired by the Borrower or any of its Subsidiaries,
in each case in existence at the time such acquisition is consummated, provided that
such Liens are not incurred in connection with or in contemplation or anticipation of such
acquisition and do not attach to any other asset of the Borrower or any of its Subsidiaries;

(xi) Liens resulting from the refinancing, renewal or extension of obligations secured
by any Lien permitted by clauses (v) and (x) of this Section 9.01, so long as (x) the
principal amount of the obligations secured thereby is not increased as a result thereof
(except to the extent any such incremental obligations are independently justified under
(and applied as a utilization of the basket described in) Section 9.01(xiii) below) and (y)
such renewals, replacements and extensions do not result in Liens applying to any Assets
which are not already subject to the Liens securing the respective obligations being
renewed, replaced or extended;

(xii) intercompany Indebtedness owed by and among the Borrower, and any of its
Wholly-Owned Subsidiaries may be secured by any Assets of the respective such obligor, so
long as (x) any Subsidiary of the Borrower which is an obligee with respect to any such
Indebtedness owed by a Credit Party shall have entered into the Subordination Agreement and
(y) any such intercompany Indebtedness owed by a Credit Party shall at all times be subject
to the provisions of the Subordination Agreement as, and to the extent, required thereby;

(xiii) Liens on Segregated Funds (and deposit accounts in which Segregated Funds are
deposited) pledged by the Borrower or any of its Subsidiaries to secure Defeased Debt in
accordance with the terms of the documentation governing the same; and

(xiv) Liens on Assets of the Borrower or any of its Subsidiaries and not otherwise
permitted by the foregoing clauses (i) through (xii), so long as (I) the sum of the
aggregate fair market value (as reasonably determined by the senior management of the
Borrower) of the Assets secured by such Liens, does not exceed at any time 10% of
Consolidated Net Tangible Assets (determined as of the date of the most recent incurrence of
such Liens or related obligations (or any increase thereof) by reference to the then most
recent date for which the Borrower has delivered (or was required to deliver, if such
delivery has not been made) its financial statements under Section 8.01(a) or (b), as
applicable) and (II) the Assets so encumbered have a value (as determined in good faith by
senior management of the Borrower) reasonably related to the amount of the obligations
secured thereby.

9.02 Consolidation, Merger, Sale of Assets, Lease Obligations, etc. The Borrower will
not, nor will permit any of its Subsidiaries to, enter into transaction of merger or consolidation,
or convey, sell, lease or otherwise dispose of all or any substantial part of the property or
assets of the Borrower or such Subsidiary (other than inventory, goods, materials or equipment (in
each case other than Real Property) in the ordinary course of business), unless: (i) no Specified
Default or Event of Default then exists or would result therefrom, (ii) in the case of a merger or
consolidation involving a Foreign Subsidiary Borrower, a Foreign Subsidiary Borrower is the
surviving corporation of such merger or consolidation, and (iii) in the case of a merger or
consolidation involving the Borrower or any other Credit Party and any other Person, the Borrower
or such other Credit Party, as the case may be, shall be the surviving corporation of such merger
or consolidation, provided that:

(1) the Borrower or such other Credit Party, as the case may be, shall not be required
to be the surviving corporation of such merger or consolidation, so long as (x) the
respective entity which survives such merger or consolidation assumes all of the obligations
of the Borrower or such other Credit Party, as the case may be, under the Credit Documents
to which it is a party pursuant to documentation reasonably satisfactory to the
Administrative Agent and the Required Lenders, (y) the Required Lenders shall have consented
thereto on such additional terms and conditions satisfactory to them and (z) such surviving
entity shall have delivered such opinions of counsel and such other documentation (including
revised Notes and evidence of good standing) as shall be reasonably requested by the
Administrative Agent or any Lender;

(2) no Foreign Subsidiary Borrower shall be permitted to merge or consolidate with the
Borrower and/or any other Credit Party, as applicable, except that, in the case of any such
merger or consolidation with the Borrower, same shall be permitted if the Borrower is the
surviving corporation of such merger or consolidation; and

(3) no Credit Party (other than the Borrower) shall be permitted to merge or
consolidate with the Borrower and/or another Credit Party, as applicable, except that, in
the case of any such merger or consolidation with the Borrower, same shall be permitted if
the Borrower is the surviving corporation of such merger or consolidation.

9.03 Restricted Payments. The Borrower will not, nor will permit any of its
Subsidiaries to, authorize, declare or pay any Dividends, except that:

(i) any Subsidiary of the Borrower may authorize, declare and pay cash Dividends to the
Borrower or to any Wholly-Owned Subsidiary of the Borrower;

(ii) any Subsidiary of the Borrower that is not a Wholly-Owned Subsidiary may
authorize, declare and pay Dividends to its shareholders, members or partners generally, so
long as the Borrower or its respective Subsidiary which owns the equity interests in the
Subsidiary paying such Dividends receives at least its proportionate share thereof (based
upon its relative holding of the equity interests in the Subsidiary paying such Dividends
and taking into account the relative preferences, if any, of the various classes of equity
interests of such Subsidiary); and

(iii) the Borrower and any of its Subsidiaries may authorize, declare or pay Dividends
from time to time (in addition to those permitted pursuant to preceding clauses (i) and
(ii)), so long as (x) no Specified Default or Event of Default exists at the time of the
respective authorization, declaration or payment or would exist immediately after giving
effect thereto and (y) calculations are made by the Borrower establishing compliance with
the financial covenants contained in Sections 9.04 and 9.05 for the Reference Period, on a
Pro Forma Basis (giving effect to the payment of the respective Dividend).

9.04 Consolidated Interest Coverage Ratio. The Borrower will not permit the
Consolidated Interest Coverage Ratio for any Test Period ending on the last day of any fiscal
quarter of the Borrower to be less than 2:50:1.00.

9.05 Maximum Consolidated Leverage Ratio. The Borrower will not permit the
Consolidated Leverage Ratio on the last day of any fiscal quarter of the Borrower to be greater
than 4.50:1.00.

9.06 Business. The Borrower will not, nor will permit any of its Subsidiaries to,
engage (directly or indirectly) in any business other than the Hotel Business.

9.07 Restriction on Incurrence of Intercompany Debt, etc. The Borrower will not, nor
will permit any other Credit Party to, contract, create, incur or suffer to exist any Intercompany
Debt, unless (x) the Subsidiary of the Borrower which is the obligee with respect to such
Intercompany Debt is a party to the Subordination Agreement and (y) such Intercompany Debt is
subordinated in right of payment to the Obligations of the respective Credit Party obligated with
respect to such Intercompany Debt as, and to the extent, required by the Subordination Agreement;
provided however that any Subsidiary of the Borrower created, formed or acquired
after the Closing Date (or, if later, the most recent date of the required delivery of financial
statements pursuant to Section 8.01(a) or (b)) that is an obligee with respect to any Intercompany
Debt shall not be required to become a party to the Subordination Agreement (and the Intercompany
Debt owed by a Credit Party to such Subsidiary shall not be required to be so subordinated in right
of payment), until the first date of the required delivery of financial statements pursuant to
Section 8.01(a) or (b) after the creation, formation or acquisition of such Subsidiary.

9.08 Transaction with Affiliates. The Borrower will not, nor will permit any of its
Subsidiaries to, enter into any transaction (or series of related transactions) with any Affiliate
of the Borrower or any of its Subsidiaries that is material to the Borrower and its Subsidiaries as
a whole other than on terms and conditions substantially as favorable to the Borrower or such
Subsidiary as would reasonably be obtained by the Borrower or such Subsidiary at that time in a
comparable arm’s-length transaction with a Person other than an Affiliate.

SECTION 10. Events of Default. Upon the occurrence of any of the following specified
events (each, an “Event of Default”):

10.01 Payments. The Borrower shall (i) default in the payment when due of any
principal of any Loan or any Note or (ii) default, and such default shall continue unremedied for
two or more Business Days, in the payment when due of any interest on any Loan or Note or any Fees
or any other amounts owing hereunder or thereunder; or

10.02 Representations, etc. Any representation, warranty or statement made by any
Credit Party herein or in any other Credit Document or in any certificate delivered to any Agent or
any Lender pursuant hereto or thereto shall prove to be untrue in any material respect on the date
as of which made or deemed made; or

10.03 Covenants. Any Credit Party shall (i) default in the due performance or
observance by it of any term, covenant or agreement contained in Section 8.01(e)(i), 8.04 (but only
to the extent arising from the failure of any Credit Party to preserve and keep in full force and
effect its existence), 8.07, 8.12 or 9 or (ii) default in the due performance or observance by it
of any other term, covenant or agreement contained in this Agreement or any other Credit Document
(other than those set forth in Sections 10.01 and 10.02 and clause (i) of this Section 10.03) and
such default as described in this clause (ii) shall continue unremedied for a period of 30 days
after written notice thereof to the Borrower by the Administrative Agent or the Required Lenders;
or

10.04 Default Under Other Agreements. (i) Any Credit Party or any of its
Subsidiaries shall (x) default in any payment of any Indebtedness (other than the Obligations and
Non-Recourse Indebtedness) beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created or (y) default in the observance or performance
of any agreement or condition relating to any Indebtedness (other than the Obligations and
Non-Recourse Indebtedness) or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event shall occur or condition exist, the effect of which default or
other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a
trustee or agent on behalf of such holder or holders) to cause, without any further notice (other
than a notice of acceleration, if required) or any further lapse of time, such Indebtedness to
become due prior to its stated maturity, or (ii) any Indebtedness (other than the Obligations and
Non-Recourse Indebtedness) of any Credit Party or any of its Subsidiaries shall be declared to be
(or shall become) due and payable, or required to be prepaid other than by a regularly scheduled
required prepayment, prior to the stated maturity thereof, provided that it shall not be a
Default or an Event of Default under this Section 10.04 unless the principal amount of any one
issue of such Indebtedness, or the aggregate principal amount of all such Indebtedness as described
in preceding clauses (i) and (ii) is at least $100,000,000 (or, in the case of currencies other
than Dollars, the Dollar equivalent thereof); or

10.05 Bankruptcy, etc. Any Credit Party or any of its Subsidiaries (excluding
Insignificant Subsidiaries) shall commence a voluntary case concerning itself under Title 11 of the
United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto
(the “Bankruptcy Code”); or an involuntary case is commenced against any Credit Party or
any of its Subsidiaries (excluding Insignificant Subsidiaries), and the petition is not
controverted within 10 days, or is not dismissed within 60 days, after commencement of the case; or
a custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge of, all or
substantially all of the property of any Credit Party or any of its Subsidiaries (excluding
Insignificant Subsidiaries), or any Credit Party or any of its Subsidiaries (excluding
Insignificant Subsidiaries) commences any other proceeding under any reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, bankruptcy, insolvency, receivership,
administration, winding up or liquidation or similar law of any jurisdiction whether now or
hereafter in effect relating to any Credit Party or any of its Subsidiaries (excluding
Insignificant Subsidiaries), or there is commenced against any Credit Party or any of its
Subsidiaries (excluding Insignificant Subsidiaries) any such proceeding under any such law of any
jurisdiction which remains undismissed for a period of 60 days, or any Credit Party or any of its
Subsidiaries (excluding Insignificant Subsidiaries) is adjudicated insolvent or bankrupt; or any
order of relief or other order approving any such case or proceeding is entered; or any Credit
Party or any of its Subsidiaries (excluding Insignificant Subsidiaries) suffers any appointment of
any custodian, administrator, administrative receiver, receiver, trustee or the like for it or any
substantial part of its property to continue undischarged or unstayed for a period of 60 days; or
any Credit Party or any of its Subsidiaries (excluding Insignificant Subsidiaries) makes a general
assignment for the benefit of creditors; or any corporate action is taken by any Credit Party or
any of its Subsidiaries (excluding Insignificant Subsidiaries) for the purpose of effecting any of
the foregoing; or

10.06 ERISA. (a) Any Plan shall fail to satisfy the minimum funding standard
required for any plan year or part thereof under Section 412 of the Code or Section 302 of ERISA or
a waiver of such standard or extension of any amortization period is sought or granted under
Section 412 of the Code or Section 303 or 304 of ERISA, a Reportable Event shall have occurred, a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan subject to Title IV of
ERISA shall be subject to the advance reporting requirement of PBGC Regulation Section 4043.61
(without regard to subparagraph (b)(1) thereof) and an event described in subsection .62, .63, .64,
        .65, .66, .67 or .68 of PBGC Regulation Section 4043 shall be reasonably expected to occur with
respect to such Plan within the following 30 days, any Plan which is subject to Title IV of ERISA
shall have had or is likely to have a trustee appointed to administer such Plan, any Plan which is
subject to Title IV of ERISA is, shall have been or is likely to be terminated or to be the subject
of termination proceedings under ERISA, any Plan shall have an Unfunded Current Liability, a
contribution required to be made with respect to a Plan or a Foreign Pension Plan has not been
timely made, the Borrower or any Subsidiary of the Borrower or any ERISA Affiliate has incurred or
is likely to incur any liability to or on account of a Plan under Section 409, 502(i), 502(l), 515,
4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971 or 4975 of the Code
or on account of a group health plan (as defined in Section 607(1) of ERISA , Section 4980B(g)(2)
of the Code or 45 Code of Federal Regulations Section 160.103) under Section 4980B of the Code
and/or the Health Insurance Portability and Accountability Act of 1996, or the Borrower or any
Subsidiary of the Borrower has incurred or is likely to incur liabilities pursuant to one or more
employee welfare benefit plans (as defined in Section 3(1) of ERISA) that provide benefits to
retired employees or other former employees (other than as required by Section 601 of ERISA) or
Plans or Foreign Pension Plans; (b) there shall result from any such event or events the imposition
of a lien, the granting of a security interest, or a liability or a material risk of incurring a
liability; and (c) such lien, security interest or liability, individually, and/or in the aggregate
has had, or could reasonably be expected to have, a Material Adverse Effect; or

10.07 Guaranties. Except in accordance with the express terms of the Subsidiaries
Guaranty, the Subsidiaries Guaranty or any provision thereof shall cease to be in full force or
effect as to the relevant Guarantor, or any Guarantor or Person acting by or on behalf of such
Guarantor shall deny or disaffirm such Guarantor’s obligations under the Subsidiaries Guaranty, or
any Guarantor shall default in the due performance or observance (beyond any applicable grace
period) of any term, covenant or agreement on its part to be performed or observed pursuant to the
Subsidiaries Guaranty; or

10.08 Judgments. One or more judgments or decrees shall be entered against the
Borrower or any Subsidiary of the Borrower involving in the aggregate for the Borrower and its
Subsidiaries a liability (to the extent not paid or covered by a reputable and solvent insurance
company (with any portion of any judgment or decree not so covered to be included in any
determination hereunder)) and such judgments and decrees either shall be final and non-appealable
or shall not be vacated, discharged or stayed or bonded pending appeal for any period of 30
consecutive days, and the aggregate amount of all such judgments exceeds $50,000,000 (or, in the
case of currencies other than Dollars, the Dollar equivalent thereof); or

10.09 Change of Control. A Change of Control shall occur;

10.10 [RESERVED]; or

10.11 Subordination Agreement. The Subordination Agreement or any material provision
thereof shall cease to be in full force or effect as to any party thereto, or any party to the
Subordination Agreement or Person acting by or on behalf of such party shall deny or disaffirm such
party’s obligations thereunder, or any party to the Subordination Agreement shall default in the
due performance or observance of any material term, covenant or agreement on its part to be
performed or observed pursuant thereto;

then, and in any such event, and at any time thereafter, if any Event of Default shall then be
continuing, the Administrative Agent, upon the written request of the Required Lenders, shall by
written notice to the Borrower, take any or all of the following actions, without prejudice to the
rights of any Agent, any Lender or the holder of any Note to enforce its claims against any Credit
Party (provided that, if an Event of Default specified in Section 10.05 shall occur with
respect to the Borrower, the result which would occur upon the giving of written notice by the
Administrative Agent as specified in clauses (i) and (ii) below shall occur immediately and
automatically without the giving of any such notice): (i) declare the Total Commitment terminated,
whereupon all Commitments of each Lender shall forthwith terminate immediately; (ii) declare the
principal of and any accrued interest in respect of all Loans and the Notes and all Obligations
owing hereunder and thereunder to be, whereupon the same shall become, forthwith due and payable
without presentment, demand, protest or other notice of any kind, all of which are hereby waived by
each Credit Party; and (iii) enforce the Subsidiaries Guaranty.

SECTION 11. Definitions and Accounting Terms.

11.01 Defined Terms. As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

“Acquisition” shall mean the acquisition of all or any portion of the assets
(including Hotels) or all or any portion of the Capital Stock of any Person.

“Adjustment Date” shall have the meaning provided in Section 1.18(b).

“Administrative Agent” shall have the meaning provided in the first paragraph of this
Agreement.

“Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with, such specified
Person. For purposes of this definition, “control” (including, with correlative meanings, the
terms “controlling,” “controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise; provided that beneficial ownership of 10% or more of
the voting securities, of a Person shall be deemed to be control.

“Agent” shall mean each of Bank of America, N.A. in its capacity as Administrative
Agent and the Co-Syndication Agents in their capacity as Co-Syndication Agents; provided
that for purposes of Section 12 (other than Section 12.09) and Section 13.01, the term “Agent”
shall include the Co-Documentation Agents and the Lead Arranger.

“Agent Parties” shall have the meaning provided in Section 13.03(c).

“Agreement” shall mean this Credit Agreement, as modified, supplemented or amended
(including any amendment and restatement hereof) from time to time.

“Applicable Margin” shall mean, from and after any Start Date to and including the
corresponding End Date, the respective percentage per annum set forth below under the respective
Type of Loans or Fee and opposite the respective Ratings-Based Level (i.e., 1, 2, 3, 4 or
5, as the case may be) and Leverage-Based Level (i.e., I, II, III, IV or V, as the case may
be) indicated to have been achieved on the applicable Test Date for such Start Date (as adjusted in
accordance with subclauses (A), (B) and (C) of the immediately succeeding proviso and as set forth
in the respective officer’s certificate delivered pursuant to Section 8.01(d)):

	 	 	 	 	 	 	 	 	 	 	 
	Ratings-Based Level

	 	Unsecured Debt

Rating
	 	Leverage-Based Level
	 	Consolidated

Leverage Ratio
	 	“Applicable Margin”

for dollar Loans
	 	“Applicable Margin”

for Base Rate

Loans
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	1

	 	BBB+ or higher from

S&P and Baa1 or

higher from Moody’s
	 	

I
	 	

Less than 2.25:1.0
	 	

0.450%
	 	

0.000%
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	2

	 	Ratings-Based Level

1 is not applicable

and ratings of BBB

or higher from S&P

and Baa2 or higher

from Moody’s
	 	

II
	 	

Greater than or

equal to 2.25:1.0

and less than

3.00:1.0
	 	

0.500%
	 	

0.000%
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	3

	 	Ratings-Based

Levels 1 and 2 are

not applicable and

ratings of BBB- or

higher from S&P

and Baa3 or higher

from Moody’s
	 	

III
	 	

Greater than or

equal to 3.00:1.0

and less than

3.75:1.0
	 	

0.625%
	 	

0.000%
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	4

	 	Ratings-Based

Levels 1, 2 and 3

are not applicable

and ratings of BB+

or higher from S&P

and Ba1 or higher

from Moody’s
	 	

IV
	 	

Greater than or

equal to 3.75:1.0

and less than

4.25:1.0
	 	

0.750%
	 	

0.0%
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	5

	 	Ratings-Based

Levels 1, 2, 3 and

4 are not

applicable
	 	

V
	 	

Greater than or

equal to 4.25:1.0
	 	

1.000%
	 	

0.0%
	 

	 	 
	 	 
	 	 
	 	 
	 	 

; provided that for purposes of calculations pursuant to the preceding table, (A) subject
to clauses (B) and (C) below, if the Ratings-Based Level and the Leverage-Based Level at a given
time under the foregoing table would result in the determination of different “Applicable Margins”
at such time, then the “Applicable Margin” shall be determined by reference to that Level
(i.e., either the Ratings-Based Level or the Leverage-Based Level) which would then result
in a lower “Applicable Margin”, (B) at any time Ratings-Based Level 4 is in effect, the “Applicable
Margins” determined pursuant to the foregoing table shall be no lower than those applicable when
Leverage-Based Level 3 is in effect and (C) at any time Ratings-Based Level 5 is in effect, the
“Applicable Margins” determined pursuant to the foregoing table shall be no lower than those
applicable when Leverage-Based Level 4 is in effect; provided, further, that
notwithstanding anything to the contrary contained above, (x) if the Borrower fails to deliver the
financial statements required to be delivered pursuant to Section 8.01(a) or (b) (accompanied by
the officer’s certificates required by Section 8.01(d) showing the applicable Consolidated Leverage
Ratio and Unsecured Debt Ratings on the relevant Test Date) on or prior to the respective date
required by such Sections, then Ratings-Based Level 5 and Leveraged-Based Level V pricing shall
apply until such time, if any, as the financial statements required as set forth above and the
accompanying officer’s certificates have been delivered showing that the pricing for the respective
Margin Adjustment Period is at a Level which is less than Ratings-Based Level 5 and Leveraged-Based
Level V (it being understood that, in the case of any late delivery of the financial statements and
officer’s certificates as so required, the reduced Applicable Margin, if any, shall apply only from
and after the date of the delivery of the complying financial statements and officer’s
certificates), and (y) Ratings-Based Level 5 and Leveraged-Based Level V pricing shall apply at all
times when any Default or any Event of Default exists.

“Assets” means, with respect to any Person, all assets of such Person that would, in
accordance with GAAP, be classified as assets of a company conducting a business the same as or
similar to that of such Person, including without limitation, all hotels, mortgage loans,
management agreements, franchise agreements, representation agreements, undeveloped land, joint
ventures, hotel construction and available cash balances.

“Asset Sale” shall mean any sale, transfer or other disposition by the Borrower or any
of its Subsidiaries to any Person other than the Borrower or any Wholly-Owned Subsidiary of the
Borrower of any Asset (including, without limitation, any Capital Stock or other securities of
another Person, but excluding the sale by the Borrower of its own Capital Stock) of the Borrower or
such Subsidiary other than (i) sales, transfers or other dispositions of inventory made in the
ordinary course of business and (ii) any single sale of assets (or series of related sales of
assets) which generates gross sale proceeds of less than $5,000,000.

“Assignment and Assumption Agreement” shall mean the Assignment and Assumption
Agreement substantially in the form of Exhibit H (appropriately completed).

“Authorized Officer” of any Credit Party shall mean any of the President, the Chief
Financial Officer, the Treasurer, any Assistant Treasurer, any Vice-President, the Secretary or any
Assistant Secretary of such Credit Party or any other officer of such Credit Party which is
designated in writing to the Administrative Agent by any of the foregoing officers of such Credit
Party as being authorized to give such notices under this Agreement.

“B-1 Term Loan” shall have the meaning provided for in Section 1.01(a).

“B-1 Term Loan Commitment” shall mean, for each Lender, the amount set forth opposite
such Lender’s name in Schedule I directly below the column entitled “B-1 Term Loan Commitment,” as
the same may be terminated pursuant to Sections 4.03 and/or 10.

“B-1 Term Loan Maturity Date” shall mean June 29, 2009.

“B-1 Term Note” shall have the meaning provided for in Section 1.06(a).

“B-2 Term Loan” shall have the meaning provided for in Section 1.01(b).

“B-2 Term Loan Commitment” shall mean, for each Lender, the amount set forth opposite
such Lender’s name in Schedule I directly below the column entitled “B-2 Term Loan Commitment,” as
the same may be terminated pursuant to Sections 4.03 and/or 10.

“B-2 Term Loan Maturity Date” shall mean June 29, 2010.

“B-2 Term Note” shall have the meaning provided for in Section 1.06(a).

“Bankruptcy Code” shall have the meaning provided in Section 10.05.

“Base Rate” at any time shall mean the higher of (i) 1/2 of 1% in excess of the
overnight Federal Funds Rate and (ii) the Prime Lending Rate.

“Base Rate Loan” shall mean each Loan designated or deemed designated as such by the
Borrower at the time of the incurrence thereof or conversion thereto.

“Benefitted Lender” shall have the meaning provided in Section 13.06(b).

“Borrower” shall have the meaning provided in the first paragraph of this Agreement.

“Borrower Materials” shall have the meaning provided in the last paragraph of Section
8.01.

“Borrowing” shall mean the borrowing by the Borrower of one Type of Loan of a single
Tranche from all the Lenders with Commitments of the respective Tranche on a given date (or
resulting from a conversion or conversions on such date) having, in the case of Eurodollar Loans,
the same Interest Period; provided that Base Rate Loans incurred pursuant to Section
1.11(b) shall be considered part of the related Borrowing of Eurodollar Loans.

“Business Day” shall mean (i) any day except Saturday, Sunday and any day which shall
be in New York City a legal holiday or a day on which banking institutions are authorized or
required by law or other government action to close and (ii) with respect to all notices,
determinations, fundings and payments in connection with the Eurodollar Rate or any Eurodollar
Loans, the term “Business Day” shall mean any day which is a Business Day described in clause (i)
and which is also a day for trading by and between banks in Dollar deposits in the London interbank
market.

“Capitalized Lease Obligations” of any Person shall mean all rental obligations which
are or will be required to be capitalized on the books of such Person, in each case taken at the
amount thereof accounted for as indebtedness in accordance with GAAP.

“Capital Stock” of any Person shall mean any and all shares, interests, rights to
purchase, warrants, options, participation or other equivalents of or interests in (however
designated) equity of such Person, including any preferred stock, any limited or general
partnership interest and any limited liability company membership interest.

“Cash Equivalents” means (i) Dollars, (ii) securities issued or directly fully
guaranteed or insured by the United States government or any agency or instrumentality thereof
(provided that the full faith and credit of the United States is pledged in support
thereof) having maturities of not more than six months from the date of acquisition,
(iii) certificates of deposit and eurodollar time deposits with maturities of six months or less
from the date of acquisition, bankers’ acceptances with maturities not exceeding six months and
overnight bank deposits, in each case with any domestic commercial bank or commercial bank of a
foreign country recognized by the United States, in each case having capital and surplus in excess
of $500 million (or the foreign currency equivalent thereof) and has outstanding debt which is
rated “A” (or similar equivalent thereof) or higher by at least one nationally recognized
statistical rating organization (as defined under Rule 436 under the Securities Act) or any
money-market fund sponsored by a registered broker dealer or mutual fund distributor, (iv)
repurchase obligations with a term of not more than seven days for underlying securities of the
types described in clauses (ii) and (iii) above entered into with any financial institution meeting
the qualifications specified in clause (iii) above and (v) commercial paper having one of the two
highest ratings obtainable from Moody’s or S&P and in each case maturing within six months after
the date of acquisition.

“CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as the same may be amended from time to time, 42 U.S.C. § 9601 et
seq.

“Change of Control” shall mean the occurrence of any of the following events: (i) any
merger or consolidation of the Borrower with or into any Person or any sale, transfer or other
conveyance, whether direct or indirect, of all or substantially all of the assets of the Borrower,
on a consolidated basis, in one transaction or a series of related transactions, if, immediately
after giving effect to such transaction, any Person or group of Persons (within the meaning of
Section 13 or 14 of the Securities Exchange Act) is or becomes the beneficial owner (within the
meaning of Rule 13d-3 promulgated by the SEC under the Securities Exchange Act) of the Capital
Stock representing a majority of the total voting power of the aggregate outstanding securities of
the transferee or surviving entity normally entitled to vote in the election of directors,
managers, or trustees, as applicable, of the transferee or surviving entity, (ii) any Person or
group of Persons (within the meaning of Section 13 or 14 of the Securities Exchange Act) is or
becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated by the SEC under the
Securities Exchange Act) of the Capital Stock representing a majority of total voting power of the
aggregate outstanding Capital Stock of the Borrower normally entitled to vote in the election of
directors of the Borrower, (iii) during any period of 12 consecutive calendar months, individuals
who were directors of the Borrower on the first day of such period (together with any new directors
whose election by the board of directors of the Borrower or whose nomination for election by the
stockholders of the Borrower was approved by a vote of a majority of the directors then still in
office who were either directors at the beginning of such period or whose election or nomination
for election was previously so approved) cease for any reason to constitute a majority of the board
of directors of the Borrower, or (iv) the sale or disposition, whether directly or indirectly, by
the Borrower and/or its Subsidiaries (whether pursuant to a single transaction or series of related
transactions) of all or substantially all of the assets owned by the Borrower and its Subsidiaries.

“Closing Date” shall mean the date (which shall occur on the Effective Date) on which
the initial Borrowing of Loans hereunder occurs.

“Co-Documentation Agents” shall have the meaning provided in Section 12.01.

“Co-Syndication Agents” shall have the meaning provided in Section 12.01.

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and rulings issued thereunder. Section references to the Code are to
the Code, as in effect at the date of this Agreement and any subsequent provisions of the Code,
amendatory thereof, supplemental thereto or substituted therefor.

“Commitment” shall mean either the B-1 Term Loan Commitment or the B-2 Term Loan
Commitment, as the case may be.

“Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such
period, adjusted by (x) adding thereto (i) to the extent actually deducted in determining said
Consolidated Net Income, consolidated interest expense and provision for taxes for such period
(excluding, however, consolidated interest expense and taxes attributable to Unconsolidated Joint
Ventures of the Borrower and any of its Subsidiaries), (ii) the amount of all amortization of
intangibles and depreciation that were deducted determining Consolidated Net Income for such period
(including in any event (and regardless of any contrary treatment under GAAP) the pro
rata share of depreciation and amortization of Unconsolidated Joint Ventures of the
Borrower and its Subsidiaries), and (iii) any non-recurring non-cash charges in such period to the
extent that (A) such non-cash charges do not give rise to a liability that would be required to be
reflected on the consolidated balance sheet of the Borrower (and so long as no cash payments or
cash expenses will be associated therewith (whether in the current period or for any future
period)) and (B) same were deducted in determining Consolidated Net Income for such period, and
(y) subtracting therefrom, to the extent included in determining Consolidated Net Income for such
period, the amount of non-recurring non-cash gains during such period; provided that (I)
Consolidated EBITDA shall be determined without giving effect to any extraordinary gains or losses
(including any taxes attributable to any such extraordinary gains or losses) or gains or losses
(including any taxes attributable to such gains or losses) from sales of assets other than from
sales of inventory (excluding Real Property) in the ordinary course of business and (II) to the
extent any calculation pursuant to this Agreement is to be made on a Pro Forma
Basis (for events other than the occurrence of the Transaction), such Consolidated EBITDA shall be
further adjusted as provided in the definition of Pro Forma Basis for transactions
occurring after the Closing Date.

“Consolidated Indebtedness” shall mean, at any time, the sum of (without
duplication) (i) all indebtedness (including principal, interest, fees and charges) of the Borrower
and its Subsidiaries for borrowed money (including obligations evidenced by bonds, notes or similar
instruments) and for the deferred purchase price of property or services (excluding ordinary
payable and accrued expenses), (ii) the aggregate amount of all Capitalized Lease Obligations of
the Borrower and its Subsidiaries, (iii) all Indebtedness of the types described in clause (i),
(ii), (iv), or (v) of this definition secured by any Lien on any property owned by the Borrower or
any of its Subsidiaries, whether or not such Indebtedness has been assumed by such Person
(provided that, if the Person has not assumed or otherwise become liable in respect of such
Indebtedness, such Indebtedness shall be deemed to be in an amount equal to the fair market value
of the property to which such Lien relates as determined in good faith by such Person), (iv) all
Contingent Obligations of the Borrower or any of its Subsidiaries with respect to Indebtedness of
the types described in clause (i), (ii), (iii) or (v) of this definition (regardless of any
contrary treatment under GAAP) (it being understood, for avoidance of doubt, that such Contingent
Obligations shall not include Contingent Obligations with respect to any undrawn portion of any
letter of credit, even if there are unpaid and unreimbursed drawings in respect of a portion of
such letter of credit), and (v) the aggregate amount of all unpaid and unreimbursed drawings in
respect of letters of credit issued for the account of the Borrower and its Subsidiaries;
provided that, for purposes of this definition, (w) the aggregate amount of Contingent
Obligations of the Borrower or any of its Subsidiaries which are not included on the consolidated
balance sheet of the Borrower shall be included in any calculation of Consolidated Indebtedness
pursuant to preceding clause (iv) only to the extent such Indebtedness exceeds $250,000,000, (x)
any Disqualified Preferred Stock of the Borrower issued after the Effective Date and any Preferred
Stock of any of its Subsidiaries issued after the Effective Date shall be treated as Indebtedness,
with an amount equal to the greater of the liquidation preference or the maximum mandatory fixed
repurchase price of any such outstanding Preferred Stock deemed to be a component of Consolidated
Indebtedness, (y) the maximum amount of Indebtedness at any time outstanding as described in the
last sentence of the definition of Indebtedness contained herein shall be added to, and form part
of, Consolidated Indebtedness (regardless of any contrary treatment under GAAP) and (z)
“Consolidated Indebtedness” (determined as otherwise required above in this definition) shall be
reduced by the lesser of (x) the aggregate amount of all Segregated Funds at such time (in the case
of Segregated Funds constituting Cash Equivalents, taking the fair market value thereof as
reasonably determined by management of the Borrower) and (y) the aggregate principal amount of all
Defeased Debt.

“Consolidated Interest Coverage Ratio” shall mean, for any period, the ratio of
(x) Consolidated EBITDA for such period to (y) Consolidated Interest Expense for such period.

“Consolidated Interest Expense” shall mean, for any period, the total
consolidated interest expense of the Borrower and its Subsidiaries for such period (in each case
calculated without regard to any limitations on the payment thereof) plus, without
duplication, (i) that portion of Capitalized Lease Obligations of the Borrower and its Subsidiaries
representing the interest factor for such period plus (ii) the product of (x) the amount of
all cash Dividend requirements (whether or not declared or paid) on Disqualified Preferred Stock of
the Borrower issued after the Effective Date and on any Preferred Stock of any of its Subsidiaries
issued after the Effective Date paid, accrued or scheduled to paid or accrued during such period
multiplied by (y) a fraction, the numerator of which is one and the denominator of which is one
minus the then current effective consolidated Federal, state, local and foreign tax rate (expressed
as a decimal number between one and zero) of the Borrower as reflected in the audited consolidated
financial statements of the Borrower for its most recently completed Fiscal Year, which amounts
described in preceding clause (ii) shall be treated as interest expense of the Borrower and its
Subsidiaries for purposes of this definition regardless of the treatment of such amounts under
GAAP; provided that the amortization of deferred financing costs with respect to this
Agreement and the Senior Notes shall be excluded from Consolidated Interest Expense to the extent
the same would otherwise have been included therein.

“Consolidated Leverage Ratio” shall mean, at any time, the ratio of Consolidated
Indebtedness at such time to Consolidated EBITDA for the then most recently ended Test Period;
provided that to the extent any Acquisition or any Asset Sale has occurred after the
Closing Date and during the relevant Test Period, Consolidated EBITDA shall be determined for the
respective Test Period on a Pro Forma Basis for such occurrences.

“Consolidated Net Income” shall mean, for any period, the consolidated net income (or
loss) of the Borrower for such period; provided that (without duplication of exclusions)
(i) to the extent that Consolidated Net Income does not reflect net income (or loss) attributable
to minority interests in Consolidated Subsidiaries that are not Wholly-Owned Subsidiaries of the
Borrower, Consolidated Net Income shall (subject to succeeding clause (ii) of this proviso) be
increased or decreased, as the case may be, by the amount of net income (or loss) attributable to
such minority interests, (ii) the net income of any Subsidiary of the Borrower and any
Unconsolidated Joint Venture of the Borrower or any of its Subsidiaries (to the extent otherwise
included in determining Consolidated Net Income) shall be excluded to the extent that the
declaration or payment of dividends and distributions by such Subsidiary or Unconsolidated Joint
Venture, as the case may be, of net income is not permitted at the date of determination without
any prior governmental approval (that has not been obtained) or, directly or indirectly, by
operation of the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Subsidiary or Unconsolidated Joint
Venture or their respective equityholders, as applicable, and (iii) except for determinations
expressly required to be made on a Pro Forma Basis, the net income (or loss) of any
Person accrued prior to the date it becomes a Subsidiary or an Unconsolidated Joint Venture of the
Borrower or any of its Subsidiaries, or all or substantially all of the property or assets of such
Person are acquired by a Subsidiary or an Unconsolidated Joint Venture of the Borrower or any of
its Subsidiaries, shall be excluded from such determination.

“Consolidated Net Tangible Assets” shall mean, at any time, the total
consolidated assets of the Borrower and its Subsidiaries as same would be shown on a consolidated
balance sheet of the Borrower prepared in accordance with GAAP, provided that all
intangible assets (including good will) shall be excluded in making such determination.

“Consolidated Subsidiary” shall mean, with respect to any Person, at any date, any
Subsidiary of such Person, whose financial results would be consolidated in the financial
statements of such Person in accordance with GAAP, if such statements were prepared as of such
date.

“Contingent Obligation” shall mean, as to any Person, any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other obligations
(“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly
or indirectly, including, without limitation, any obligation of such Person, whether or not
contingent, (i) to purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (x) for the purchase or payment of any
such primary obligation or (y) to maintain working capital or equity capital of the primary obligor
or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary obligation
or (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in
respect thereof; provided, however, that the term Contingent Obligation shall not
include endorsements of instruments for deposit or collection in the ordinary course of business.
Anything herein to the contrary notwithstanding, no agreement entered into by the Borrower or any
of its Subsidiaries with respect to its acquisition of any direct or indirect interest in any Hotel
(including any Real Property or Leasehold comprising a facility used in connection with the
Timeshare Business), shall prior to the satisfaction in full of all conditions precedent to the
obligations of such Person pursuant to the agreement, be deemed or construed to constitute a
“Contingent Obligation” or “Indebtedness” of such Person hereunder, provided that pursuant
to any such agreement, neither the Borrower nor any of its Subsidiaries is liable or responsible
for and does not assume any development or construction risks. The amount of any Contingent
Obligation shall be deemed to be an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Contingent Obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person
is required to perform thereunder) as determined by such Person in good faith.

“Contractual Obligation” of any Person means any obligation, agreement, undertaking or
similar provision of any security issued by such Person or of any agreement (including, without
limitation, any management or franchise agreement), undertaking, contract, lease, indenture,
mortgage, deed of trust or other instrument (excluding a Credit Document) to which such Person is a
party or by which it or any of its property is bound or to which any of its properties is subject.

“Credit Documents” shall mean this Agreement and, after the execution and delivery
thereof pursuant to the terms of this Agreement, the Subsidiaries Guaranty, each Note and the
Subordination Agreement.

“Credit Event” shall mean the making of any Loan.

“Credit Party” shall mean the Borrower and each Guarantor.

“Defeased Debt” shall mean any Indebtedness of the Borrower or any of its Subsidiaries
which (i) is specifically designated by the Borrower as “Defeased Debt” pursuant to an officer’s
certificate from an Authorized Officer of the Borrower delivered to the Administrative Agent and
(ii) has been properly defeased in accordance with the terms of the documentation governing such
Indebtedness.

“Default” shall mean any event, act or condition which with notice or lapse of time,
or both, would constitute an Event of Default.

“Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in
effect.

“Disqualified Preferred Stock” shall mean any Preferred Stock of the Borrower other
than Qualified Preferred Stock.

“Dividend” with respect to any Person shall mean that such Person has declared or paid
a dividend or distribution or returned any equity capital to its stockholders, partners, members or
other holders of its Capital Stock or authorized or made any other distribution, payment or
delivery of property or cash to its holders of Capital Stock as such, or redeemed, retired,
purchased or otherwise acquired, directly or indirectly, for a consideration any shares of any
class of its Capital Stock outstanding on or after the Closing Date (or any options or warrants
issued by such Person with respect to its Capital Stock), or set aside any funds for any of the
foregoing purposes, or shall have permitted any of its Subsidiaries to purchase or otherwise
acquire for a consideration any shares of any class of the Capital Stock of such Person outstanding
on or after the Closing Date (or any options or warrants issued by such Person with respect to its
Capital Stock); provided, however, that a dividend or distribution by such Person
to the holders of one or more classes or series of its Capital Stock, shall not be deemed to be a
dividend, if such dividend or distribution is payable solely in (i) shares of Capital Stock that is
not Preferred Stock, or in rights, warrants or options to purchase such shares, or (ii) Rights.
Without limiting the foregoing, “dividends” with respect to any Person shall also include (i) all
payments made or required to be made by such Person with respect to any stock appreciation rights,
plans, equity incentive or achievement plans or any similar plans or setting aside of any funds for
the foregoing purposes, in each case except to the extent (x) the same are paid in common stock of
the Borrower or (y) such payments reduced Consolidated EBITDA and (ii) all payments (other than
payments made in common stock of the Borrower) made at any time in respect of any Forward Equity
Transactions.

“Dollars” and the sign “$” shall each mean freely transferable lawful money of
the United States.

“Domestic Subsidiary” shall mean each Subsidiary of the Borrower incorporated or
organized in the United States or any State or territory thereof.

“Effective Date” shall have the meaning provided in Section 13.10.

“Eligible Transferee” shall mean and include a commercial bank, financial institution,
any fund or similar entity that regularly invests in bank loans and any other “accredited investor”
(as defined in Regulation D of the Securities Act).

“End Date” shall mean, for any Margin Adjustment Period, the last day of such Margin
Adjustment Period.

“Environmental Claims” means any and all administrative , regulatory or judicial
actions, suits, demands, demand letters, directives, claims, liens, notices of noncompliance or
violation, investigations or proceedings arising under any Environmental Law or any permit issued,
or any approval given, under any such Environmental Law (hereafter, “Claims”), including,
without limitation, (a) any and all Claims by governmental or regulatory authorities for
enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any
applicable Environmental Law, and (b) any and all Claims by any third party seeking damages,
contribution, indemnification, cost recovery, compensation or injunctive relief in connection with
alleged injury or threat of injury to human health, safety or the environment due to the presence
of Hazardous Materials.

“Environmental Law” shall mean any Federal, state, foreign or local statute, law,
rule, regulation, ordinance, code, guideline, written policy and rule of common law now or
hereafter in effect and in each case as amended, and any judicial or administrative interpretation
thereof, including any judicial or administrative order, consent decree or judgment, relating to
the environment, employee health and safety or Hazardous Materials, including, without limitation,
CERCLA; RCRA; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.;
the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Clean Air Act, 42
U.S.C. § 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 3803 et
seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.; the
Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C. § 11001 et
seq.; the Hazardous Material Transportation Act, 49 U.S.C. § 1801 et seq;
the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; and any state and
local or foreign counterparts or equivalents, in each case as amended from time to time.

“Environmental Matters” shall have the meaning provided in Section 8.01(f).

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder. Section
references to ERISA are to ERISA, as in effect at the date of this Agreement and any subsequent
provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor.

“ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) which
together with the Borrower or a Subsidiary of the Borrower would be deemed to be a “single
employer” within the meaning of Section 414(b) or (c) or for purposes of Section 412 of the Code,
Section 414(m) or (o) of the Code.

“Eurodollar Loan” shall mean each Loan (bearing interest at the Eurodollar Rate)
designated as such by the Borrower at the time of the incurrence thereof or conversion thereto.

“Eurodollar Rate” shall mean the rate per annum that appears on page 3750 of the Dow
Jones Markets Screen/or any successor page for Dollar deposits with maturities comparable to the
Interest Period applicable to the Eurodollar Loans subject to the respective Borrowing commencing
two Business Days thereafter as of 11:00 a.m. (London time) on the date which is two Business Days
prior to the commencement of the respective Interest Period divided (and rounded, if necessary,
upward to the next whole multiple of 1/16 of 1%) by (ii) a percentage equal to 100% minus the then
stated maximum rate of all reserve requirements (including, without limitation, any marginal,
emergency, supplemental, special or other reserves) applicable to any member bank of the Federal
Reserve System in respect of Eurocurrency liabilities as defined in Regulation D (or any successor
category of liabilities under Regulation D); provided that, to the extent that an interest
rate is not ascertainable pursuant to the foregoing provisions of this definition, the rate to be
used for purposes of this definition shall be the interest rate per annum determined by the
Administrative Agent to be the rate per annum at which deposits in Dollars are offered for such
relevant Interest Period to major banks in the London interbank market in London, England by DB at
approximately 11:00 A.M. (London time) on the date which is two Business Days prior to the
beginning of such Interest Period, divided (and rounded, if necessary, upward to the nearest whole
multiple of 1/16 of 1%) by a percentage equal to 100% minus the then stated maximum rate of all
reserve requirements (including, without limitation, any marginal, emergency, supplemental, special
or other reserves) applicable to any member bank of the Federal Reserve System in respect of
Eurocurrency liabilities as defined in Regulation D (or any successor category of liabilities under
Regulation D).

“Event of Default” shall have the meaning provided in Section 10.

“Existing Credit Agreement” shall mean the Credit Agreement, dated as of February 10,
2006, among the Borrower, Starwood Hotel and Resorts, certain additional Dollar Revolving Loan
Borrowers (as defined therein), certain additional Alternate Currency Revolving Loan Borrowers (as
defined therein) and the lenders from time to time party thereto, together with the related
documents thereto (including, without limitation, any guarantee agreements), in each case as such
agreements may be amended (including any amendment and restatement thereof), supplemented or
otherwise modified from time to time, including any agreement or agreements extending the maturity
of, refinancing, replacing or otherwise restructuring (including increasing the amount of available
borrowings thereunder or adding subsidiaries of the Borrower as additional borrowers, guarantors or
obligors thereunder) all or any portion of the Indebtedness under such agreement or any successor
or replacement agreement or agreements and whether by the same or any other agent, lender or group
of lenders; provided that (i) in no event shall any agreement evidencing refinancing or replacement
Indebtedness in respect of any then Existing Credit Agreement be included within the definition of
“Existing Credit Agreement”, unless such agreement is in the form of a bank credit agreement and
(ii) for purposes of Section 13.12(c) only, the term “Existing Credit Agreement” shall mean the
Existing Credit Agreement as otherwise defined above but without giving effect to any refinancing
or replacement thereof.

“Existing Liens” shall have the meaning provided in Section 9.01.

“Existing Senior Notes” shall mean the “Senior Notes” identified as on Schedule 7.17
hereto.

“Federal Funds Rate” shall mean for any period, a fluctuating interest rate equal for
each day during such period to the weighted average of the rates on overnight Federal Funds
transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is
a Business Day, the average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal Funds brokers of recognized standing selected by the
Administrative Agent.

“Fees” shall mean all amounts payable pursuant to or referred to in Section 3.01.

“Fiscal Year” shall mean each fiscal year of the Borrower, which shall be required to
end on December 31 of each calendar year.

“Foreign Pension Plan” shall mean any plan, fund (including, without limitation, any
superannuation fund) or other similar program established or maintained outside the United States
by the Borrower or any one or more of its Subsidiaries primarily for the benefit of employees of
the Borrower or such Subsidiaries residing outside the United States of America, which plan, fund
or other similar program provides, or results in, retirement income, a deferral of income in
contemplation of retirement or payments to be made upon termination of employment, and which plan
is not subject to ERISA or the Code and which Plan, fund or similar program could result in
liability or other obligation or lien to the Borrower, any Subsidiary of the Borrower or ERISA
Affiliate.

“Foreign Subsidiary” shall mean each Subsidiary of the Borrower other than a Domestic
Subsidiary.

“Foreign Subsidiary Borrower” shall mean each Foreign Subsidiary of the Borrower that
is a borrower under the Existing Credit Agreement.

“Forward Equity Transactions” shall mean any arrangement or agreement by the Borrower
or any of its Subsidiaries involving any forward equity sale, including, without limitation, any
agreement pursuant to which funds are advanced to the Borrower or any Subsidiary thereof and
pursuant to which the Borrower or any Subsidiary thereof is contractually obligated (or permitted)
to, at a future date or dates, issue Capital Stock to satisfy its obligations under such agreement
(whether or not said obligation may be satisfied through the delivery of cash in lieu of such
Capital Stock).

“GAAP” means generally accepted accounting principles in the United States of America
as in effect from time to time set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and the statements and
pronouncements of the Financial Accounting Standards Board, or in such other statements by such
other entity as may be in general use by significant segments of the accounting profession, which
are applicable to the circumstances as of the date of determination, except that, for purposes of
Section 9 and all determinations of Applicable Margin, GAAP shall be determined on the basis of
such principles in effect on the date hereof and consistent with those used in the preparation of
the audited consolidated financial statements of the Borrower and its Subsidiaries for the Fiscal
Year ended December 31, 2004 referred to in Section 7.03(a) of the Existing Credit Agreement (as in
effect on the date hereof).

“Governmental Authority” means any nation or government, any state or other political
subdivision thereof and any entity duly exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

“Guarantor” means each Domestic Subsidiary that enters into a Subsidiaries Guaranty
pursuant to Section 8.12.

“Hazardous Materials” means (a) any petroleum or petroleum products, radioactive
materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation,
transformers or other equipment that contain dielectric fluid containing regulated levels of
polychlorinated biphenyls, and radon gas; (b) any chemicals, materials or substances defined as or
included in the definitions of “hazardous substances,” “hazardous waste,” “hazardous materials,”
“extremely hazardous substances,” “restricted hazardous waste,” “toxic substances,” “toxic
pollutants,” “contaminants,” or “pollutants,” or words of similar import, which are regulated under
any applicable Environmental Law; and (c) any other chemical, material or substance, the Release of
which is prohibited, limited or regulated by any applicable Environmental Law.

“Hotel” means any Real Property or Leasehold comprising an operating facility offering
hotel or other lodging services.

“Hotel Business” shall mean (i) the hotel, resort, extended stay lodging, other
hospitality, residential development, restaurant and health spa business (including the Timeshare
Business), and (ii) any and all businesses that in the good faith judgment of the board of
directors of the Borrower are reasonably related to, or may be used in connection with, the
businesses described in preceding clause (i).

“Indebtedness” shall mean, as to any Person, without duplication, (i) all indebtedness
(including principal, interest, fees and charges) of such Person for borrowed money or for the
deferred purchase price of property or services (excluding accounts payable and accrued expenses
arising in the ordinary course of business), (ii) the maximum amount available to be drawn under
all letters of credit issued for the account of such Person and all unpaid drawings in respect of
such letters of credit, (iii) all Indebtedness of the types described in clause (i), (ii), (iv),
(v), (vi) or (vii) of this definition secured by any Lien on any property owned by such Person,
whether or not such Indebtedness has been assumed by such Person (provided that, if the
Person has not assumed or otherwise become liable in respect of such Indebtedness, such
Indebtedness shall be deemed to be in an amount equal to the stated amount of such Indebtedness),
(iv) the aggregate amount required to be capitalized under leases under which such Person is the
lessee, (v) all obligations of such person to pay a specified purchase price for goods or services,
whether or not delivered or accepted, i.e., take-or-pay and similar obligations, (vi) all
Contingent Obligations of such Person and (vii) all obligations under any Interest Rate Protection
Agreement, any Other Hedging Agreement or under any similar type of agreement. Notwithstanding
anything to the contrary contained above, all Forward Equity Transactions shall be deemed to
constitute Indebtedness for purposes of this Agreement, with the amount of such Indebtedness at any
time outstanding to be equal to the maximum amount of cash and/or fair market value of property
which would be required to be delivered by the Borrower and its Subsidiaries at such time to
satisfy in full their obligations under the respective Forward Equity Transactions.

“Indemnified Person” shall have the meaning provided in Section 13.01(a).

“Information” shall mean all information received from the Borrower or any Subsidiary
relating to the Borrower or any Subsidiary or any of their respective businesses, other than any
such information that is available to the Administrative Agent or any Lender on a nonconfidential
basis prior to disclosure by the Borrower or any Subsidiary, provided that, in the case of
information received from the Borrower or any Subsidiary after the date hereof, such information is
clearly identified at the time of delivery as confidential.

“Insignificant Subsidiary” shall mean, at any time, any Subsidiary of the Borrower
(excluding any Credit Party) which (x) has (i) assets of not greater than 10% of the consolidated
total assets of the Borrower and its Subsidiaries (determined as of the last day of the most recent
fiscal quarter of the Borrower) and (ii) revenue of less than 10% of the consolidated revenues of
the Borrower and its Subsidiaries for the Test Period then most recently ended and (y) if
aggregated with all other Subsidiaries of the Borrower with respect to which an event described
under Section 10.05 has occurred and is continuing, would have (i) assets of not greater than 10%
of the consolidated total assets of the Borrower and its Subsidiaries (determined as of the last
day of the most recent fiscal quarter of the Borrower) and (ii) revenue of less than 10% of the
consolidated revenues of the Borrower and its Subsidiaries for the Test Period then most recently
ended.

“Intercompany Debt” shall mean any Indebtedness, whether now existing or hereafter
incurred, owed by any Credit Party to any other Credit Party or any other Subsidiary of the
Borrower (including, without limitation, any Intercompany Existing Indebtedness owed by any Credit
Party to any such Person).

“Intercompany Existing Indebtedness” shall have the meaning provided in Section 7.17.

“Interest Determination Date” shall mean, with respect to any Eurodollar Loan, the
second Business Day prior to the commencement of any Interest Period relating to such Eurodollar
Loan.

“Interest Period” shall have the meaning provided in Section 1.10.

“Interest Rate Protection Agreement” shall mean any interest rate swap agreement,
interest rate cap agreement, interest collar agreement, interest rate hedging agreement or other
similar agreement or arrangement.

“Lead Arranger” shall have the meaning provided in the first paragraph of this
Agreement.

“Leaseholds” of any Person means all the right, title and interest of such Person as
lessee or licensee in, to and under leases or licenses of land, improvements and/or fixtures.

“Lender” shall mean each financial institution listed on Schedule I, as well as any
Person which becomes a “Lender” hereunder pursuant to Section 1.14 or 13.04(b).

“Lender Default” shall mean a Lender having notified in writing the Borrower and/or
the Administrative Agent that such Lender does not intend to comply with its obligations under
Section 1.01 in circumstances where such non-compliance would constitute a breach of such Lender’s
obligations under the respective Section.

“Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), preference, priority or other security
agreement of any kind or nature whatsoever (including, without limitation, any conditional sale or
other title retention agreement, any financing or similar statement or notice filed under the
Uniform Commercial Code as in effect in any State or any other similar recording or notice statute,
and any lease having substantially the same effect as any of the foregoing).

“Loan” shall mean each B-1 Term Loan and each B-2 Term Loan.

“Managing Agents” shall have the meaning provided in Section 12.01.

“Margin Adjustment Period” shall mean each period which shall commence on the date
occurring after the Effective Date on which the respective officer’s certificates are delivered
pursuant to Section 8.01(d) and which shall end on the earlier of (i) the date of actual delivery
of the next officer’s certificates pursuant to Section 8.01(d) and (ii) the latest date on which
the next officer’s certificates are required to be delivered.

“Margin Stock” shall have the meaning provided in Regulation U.

“Material Adverse Change” means a material adverse change in any of (i) the business,
operations, property, assets, liabilities or condition (financial or otherwise) of the Borrower and
its Subsidiaries taken as a whole, (ii) the legality, validity or enforceability of the Credit
Documents taken as a whole, (iii) the ability of the Borrower to repay its Obligations or to
perform its obligations under any other Credit Document, (iv) the ability of the Guarantors, taken
as a whole, to perform their obligations under the Subsidiaries Guaranty or (v) the rights and
remedies of the Lenders or the Agents under the Credit Documents.

“Material Adverse Effect” means an effect that results in or causes, or has a
reasonable likelihood of resulting in or causing, a Material Adverse Change.

“Maturity Date” shall mean, with respect to the relevant Tranche of Loans, the B-1
Term Loan Maturity Date or the B-2 Term Loan Maturity Date, as the case may be.

“Minimum Borrowing Amount” shall mean, for each Type and Tranche of Loans hereunder,
the respective amount specified below:

(i) in the case of a Borrowing of Loans of either Tranche to be maintained as
Eurodollar Loans, $10,000,000; and

(ii) in the case of a Borrowing of Loans of either Tranche to be maintained as Base
Rate Loans, $10,000,000.

“Moody’s” shall mean Moody’s Investors Service, Inc.

“NAIC” shall have the meaning provided in Section 1.11(c).

“Non-Defaulting Lender” shall mean any Lender that is not a Defaulting Lender.

“Non-Recourse Indebtedness” of any Person means all Indebtedness of such Person and
its Subsidiaries with respect to which recourse for payment is limited to specific assets
encumbered by a Lien securing such Indebtedness; provided, however, that personal
recourse of a holder of Indebtedness against any obligor with respect thereto for fraud,
misrepresentation, misapplication of cash, waste and other circumstances customarily excluded from
non-recourse provisions in non-recourse secured financing of real estate shall not, by itself,
prevent any Indebtedness from being characterized as Non-Recourse Indebtedness,
provided further that if a personal recourse claim is made in connection therewith,
such claim shall not constitute Non-Recourse Indebtedness for the purpose of this Agreement.

“Note” shall mean each B-1 Term Note and each B-2 Term Note.

“Notice of Borrowing” shall have the meaning provided in Section 1.03.

“Notice of Conversion” shall have the meaning provided in Section 1.07(a).

“Notice Office” shall mean the office of the Administrative Agent located at Bank of
America, NA, 901 Main Street, 14th Floor, Dallas, TX  75202, Attention:  Sharon M. Tolin
(Telephone:  214 209-0203, Fax:  214 290-9645), or such other office as the Administrative Agent
may hereafter designate in writing as such to the other parties hereto.

“Obligations” shall mean all amounts owing to any Agent or any Lender pursuant to the
terms of this Agreement or any other Credit Document.

“Other Hedging Agreement” shall mean any foreign exchange contracts, currency swap
agreements, commodity agreements or other similar agreements or arrangements designed to protect
against the fluctuations in currency values or instruments to hedge and protect against
fluctuations in the Borrower’s and/or its Subsidiaries cash flow and earnings from changes in
financial markets.

“Payment Office” shall mean the office of the Administrative Agent located at Bank of
America, NA, TX1-492-14-11, 901 Main Street, 14th Floor, Dallas, TX  75202, Attention:  Sharon M.
Tolin (Telephone:  214 209-0203, Fax:  214 290-9645) or such other office as the Administrative
Agent may hereafter designate in writing as such to the other parties hereto.

“PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Section 4002 of ERISA, or any successor thereto.

“Permitted Liens” shall have the meaning provided in Section 9.01.

“Person” shall mean any individual, partnership, joint venture, limited liability
company, firm, corporation, association, trust or other enterprise or any government or political
subdivision or any agency, department or instrumentality thereof.

“Plan” shall mean any pension plan as defined in Section 3(2) of ERISA, which is
maintained or contributed to by (or to which there is an obligation to contribute of) the Borrower
or a Subsidiary of the Borrower or an ERISA Affiliate and any pension plan as defined in Section
3(2) of ERISA with respect to which the Borrower, or a Subsidiary of the Borrower or an ERISA
Affiliate could have any liability.

“Platform” shall have the meaning specified in the last paragraph of Section 8.01.

“Preferred Stock” as applied to the Capital Stock of any Person, means Capital Stock
of such Person (other than common stock of such Person) of any class or classes (however
designated) that ranks prior, as to the payment of dividends or distributions, or as to the
distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up of
such Person, to shares of Capital Stock of any other class of such Person.

“Prime Lending Rate” shall mean the rate which the Administrative Agent announces from
time to time as its prime lending rate, the Prime Lending Rate to change when and as such prime
lending rate changes. The Prime Lending Rate is a reference rate and does not necessarily
represent the lowest or best rate actually charged to any customer. The Administrative Agent may
make commercial loans or other loans at rates of interest at, above or below the Prime Lending
Rate.

“Pro Forma Basis” shall mean, as to any Person, for any events which occur subsequent
to the commencement of a period for which the financial effect of such event is being calculated,
and giving effect to the event for which such calculation is being made, such calculation as will
give pro forma effect to such event as if same had occurred at the beginning of
such period of calculation, and

(i) for purposes of the foregoing calculation, the transaction giving rise to the need
to calculate the pro forma effect to any of the following events shall be
assumed to have occurred on the first day of the four consecutive fiscal quarter period last
ended before the occurrence of the respective event for which such pro forma
effect is being determined (the “Reference Period”),

(ii) in making any determination with respect to the incurrence or assumption of any
Indebtedness during the Reference Period or subsequent to the Reference Period and on or
prior to the date of the transaction referenced in clause (i) above (the “Transaction
Date”), (x) all Indebtedness (including Indebtedness incurred or assumed and for which
the financial effect is being calculated, whether incurred under this Agreement or
otherwise, but excluding normal fluctuations in revolving indebtedness incurred for working
capital purposes and not to finance any acquisition or the making of a Dividend) incurred or
permanently repaid during the Reference Period shall be deemed to have been incurred or
repaid at the beginning of such period, (y) Consolidated Interest Expense of such Person
attributable to interest or dividends on any Indebtedness, as the case may be, bearing
floating interest rates should be computed on a pro forma basis as if the
rate in effect on the Transaction Date had been the applicable rate for the entire period
and (z) Consolidated Interest Expense will be increased or reduced by the net cost
(including amortization of discount) or benefit (after giving effect to amortization of
discount) associated with the Interest Rate Protection Agreements, which will remain in
effect for the twelve-month period after the Transaction Date and which shall have the
effect of fixing the interest rate on the date of computation; and

(iii) in making any determination of Consolidated EBITDA, pro forma
effect shall be given to any Acquisition and any Asset Sale, in each case which occurred
during the Reference Period or subsequent to the Reference Period and prior to the
Transaction Date, as if such Acquisition or Asset Sale, as the case may be, occurred on the
first day of the Reference Period.

All pro forma determinations required above shall be determined in accordance with
GAAP. For purposes of this definition, whenever pro forma effect is to be given to
any occurrence or event, the pro forma calculation shall be determined in good
faith by a responsible financial or accounting officer of the Borrower.

“Projections” shall have the meaning provided in Section 5.10(i).

“Public Lender” shall have the meaning provided in the last paragraph of Section 8.01.

“Qualified Preferred Stock” shall mean any preferred stock of the Borrower so long as
the terms of any such preferred stock (i) do not provide any collateral security, (ii) do not
provide any guaranty or other support by the Borrower or any Subsidiaries of the Borrower, (iii) do
not contain any mandatory put, redemption, repayment, sinking fund or other similar provision
occurring before December 31, 2011, (iv) do not contain any covenants other than periodic reporting
requirements, (v) do not grant the holders thereof any voting rights except for (x) voting rights
required to be granted to such holders under applicable law and (y) limited customary voting rights
on fundamental matters such as mergers, consolidations, sales of all or substantially all of the
assets of the Borrower or liquidations involving the Borrower, and (vi) do not provide for the
conversion into, or the exchange for (unless at the sole discretion of the issuer thereof), debt
securities.

“Quarterly Payment Date” shall mean the last Business Day of each April, July, October
and January occurring after the Effective Date.

“Rating Agencies” shall mean both S&P and Moody’s.

“RCRA” shall mean the Resource Conservation and Recovery Act, as the same may be
amended from time to time, 42 U.S.C. § 6901 et seq.

“Real Property” of any Person shall mean all the right, title and interest of such
Person in and to land, improvements and fixtures, including Leaseholds.

“Reference Period” shall have the meaning provided in the definition of
Pro Forma Basis.

“Register” shall have the meaning provided in Section 13.15.

“Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof
establishing reserve requirements.

“Regulation T” shall mean Regulation T of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof.

“Regulation U” shall mean Regulation U of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof.

“Regulation X” shall mean Regulation X of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof.

“Release” means disposing, discharging, injecting, spilling, pumping, leaking,
leaching, dumping, emitting, escaping, emptying, pouring or migrating, into or upon any land or
water or air, or otherwise entering into the environment.

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

“Replaced Lender” shall have the meaning provided in Section 1.14.

“Replacement” shall have the meaning provided in Section 1.14.

“Replacement Lender” shall have the meaning provided in Section 1.14.

“Reply Date” shall have the meaning provided in Section 1.04(b).

“Reportable Event” shall mean an event described in Section 4043(c) of ERISA with
respect to a Plan that is subject to Title IV of ERISA other than those events as to which the
30-day notice period is waived under subsection .22, .23, .25, .27 or .28 of PBGC Regulation
Section 4043.

“Required Lenders” shall mean, at any time, Non-Defaulting Lenders the sum of whose
outstanding Loans at such time represent an amount greater than 50% of the sum of all outstanding
Loans of Non-Defaulting Lenders at such time.

“Requirements of Law” means, as to any Person, the certificate of incorporation or
formation and by-laws or other organizational or governing documents of such Person, and all
foreign federal, state and local laws, rules and regulations, including, without limitation,
foreign federal, state or local securities, antitrust and licensing laws, all food, health and
safety laws, and all applicable trade laws and requirements, including, without limitation, all
disclosure requirements of Environmental Laws, ERISA and all orders, judgments, decrees or other
determinations of any Governmental Authority or arbitrator, applicable to or binding upon such
Person, its business or any of its property or to which such Person, its business or any of its
property is subject.

“Revolver Repayment” shall have the meaning provided in Section 5.05.

“S&P” shall mean Standard & Poor’s Ratings Services.

“Scheduled Existing Indebtedness” shall have the meaning provided in Section 7.17.

“SEC” shall mean the Securities and Exchange Commission and any successor thereto.

“Section 4.04(b)(ii) Certificate” shall have the meaning provided in
Section 4.04(b)(ii).

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

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

“Senior Managing Agents” shall have the meaning provided in Section 12.01.

“Senior Note Documents” shall mean the Senior Notes and the other instruments,
indentures, documents and agreements entered into in connection with the issuance of the Senior
Notes, as the same may be amended, modified and or supplemented from time to time in accordance
with the terms thereof.

“Senior Notes” shall mean shall mean any senior notes of the Borrower evidencing
senior Indebtedness incurred or issued by the Borrower.

“Segregated Funds” shall mean cash and Cash Equivalents of the Borrower and/or its
Subsidiaries which (i) are specifically designated by the Borrower for use solely to repay Defeased
Debt pursuant to an officer’s certificate from an Authorized Officer of the Borrower delivered to
the Administrative Agent and identifying the initial amount of the cash and Cash Equivalents to be
so designated as “Segregated Funds” and (ii) if cash, are at all times held in one or more
segregated accounts or trusts (and are not commingled with any other funds of the Borrower or its
Subsidiaries) until utilized to repay in full the respective Defeased Debt for which such funds
were so designated.

“Significant Acquisition” shall mean shall mean any Acquisition by the Borrower or any
of its Subsidiaries involving aggregate consideration (including cash, Indebtedness assumed or
incurred in connection therewith and the fair market value of all other consideration (determined
in good faith by senior management of the Borrower) payable in connection therewith) of
$250,000,000 or more.

“Significant Disposition” shall mean shall mean any Asset Sale which generates gross
cash proceeds of at least $250,000,000.

“Specified Default” shall mean any Default existing pursuant to any of Sections 10.01,
10.05 or 10.09 of this Agreement.

“Start Date” shall mean, with respect to any Margin Adjustment Period, the first day
of such Margin Adjustment Period.

“Starwood Vacation” shall mean Starwood Vacation Ownership, Inc., a Florida
corporation previously known as Vistana, Inc.

“Subordination Agreement” shall have the meaning provided in Section 5.06(b).

“Subsidiary” shall mean, as to any Person, (i) any corporation more than 50% of whose
stock of any class or classes having by the terms thereof ordinary voting power to elect a majority
of the directors of such corporation (irrespective of whether or not at the time stock of any class
or classes of such corporation shall have or might have voting power by reason of the happening of
any contingency) is at the time owned by such Person and/or one or more Subsidiaries of such Person
and (ii) any partnership, limited liability company, association, joint venture or other entity in
which such Person and/or one or more Subsidiaries of such Person has more than a 50% equity
interest at the time.

“Subsidiaries Guaranty” shall have the meaning provided in Section 8.12.

“Tax Affiliate” means, as to any Person, (i) any Subsidiary of such Person and
(ii) any Affiliate of such Person with which such Person files or is eligible to file consolidated,
combined or unitary tax returns.

“Tax Returns” shall have the meaning provided in Section 7.07.

“Taxes” shall have the meaning provided in Section 4.04(a).

“Test Date” shall mean the last day of each fiscal quarter ended after the Closing
Date.

“Test Period” shall mean each period of four consecutive fiscal quarters of the
Borrower then last ended (in each case taken as one accounting period).

“Third Party Existing Indebtedness” shall have the meaning provided in Section 7.17.

“Timeshare Business” shall mean (i) the acquisition, development, operation,
management and sale of Vacation Resorts, including, without limitation, VOIs and (ii) providing
customers who purchase VOIs at Vacation Resorts financing for such purposes (collectively, together
with any and all business that in the good faith judgment of the board of directors of the Borrower
or Starwood Vacation are materially related to the foregoing).

“Total Commitment” shall mean, at any time, the sum of the Commitments of each of the
Lenders.

“Tranche” shall mean the respective facility and commitments utilized in making Loans
hereunder, with there being two separate Tranches, i.e., B-1 Term Loans and B-2 Term Loans.

“Transaction” shall mean, collectively, (i) the Revolver Repayment, (ii) the entering
into of the Credit Documents and the incurrence of Loans on the Closing Date and (iii) the payment
of fees and expenses owing in connection with the foregoing.

“Type” shall mean the type of Loan determined with regard to the interest option
applicable thereto, i.e., whether a Base Rate Loan or a Eurodollar Loan.

“Unconsolidated Joint Venture” means, with respect to any Person, at any date, any
other Person in whom such Person holds Capital Stock but does not hold a majority of voting
securities or otherwise hold a controlling stake, and such other Person accounted for in the
financial statements of such Person on either an equity or cost basis of accounting and whose
financial results would not be consolidated in the financial statements of such Person, if such
statements were prepared in accordance with GAAP as of such date.

“Unfunded Current Liability” of any Plan shall mean the amount, if any, by which the
actuarial present value of the accumulated plan benefits under the Plan as of the close of its most
recent plan year, determined in accordance with actuarial assumptions at such time consistent with
Statement of Financial Accounting Standards No. 87, exceeds the market value of the assets
allocable thereto.

“United States” and “U.S.” shall each mean the United States of America.

“Unsecured Debt Rating” means the rating assigned by a Rating Agency to the Borrower’s
long-term senior unsecured Indebtedness (which Indebtedness may not be guaranteed).

“Unsecured Indebtedness” of any Person means any Indebtedness of such Person and its
Subsidiaries for which the obligations thereunder are not secured or collateralized by a pledge of
or other Lien on any Assets of such Person or its Subsidiaries.

“Vacation Resorts” shall mean the vacation ownership resorts acquired, developed,
operated, managed and sold by Starwood Vacation and its Subsidiaries.

“VOIs” shall mean resorts having vacation ownership interests, interval ownership
interests, timeshare estates, timeshare licenses, vacation clubs, right-to-use programs or other
forms of vacation ownership programs.

“Wholly-Owned Domestic Subsidiary” of any Person shall mean any Subsidiary of such
Person which is both a Domestic Subsidiary and a Wholly-Owned Subsidiary of such Person.

“Wholly-Owned Foreign Subsidiary” of any Person shall mean any Subsidiary of such
Person which is both a Foreign Subsidiary and a Wholly-Owned Subsidiary of such Person.

“Wholly-Owned Subsidiary” shall mean, as to any Person, (i) any corporation 100% of
whose Capital Stock is at the time owned by such Person and/or one or more Wholly-Owned
Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint
venture or other entity in which such Person and/or one or more Wholly-Owned Subsidiaries of such
Person has a 100% equity interest at such time.

SECTION 12. The Agents.

12.01 Appointment. The Lenders hereby designate (v) Bank of America, N.A. as
Administrative Agent, (w) The Bank of Nova Scotia, Citicorp North America, Inc. and The Royal Bank
of Scotland, PLC as Co-Syndication Agents (the “Co-Syndication Agents”), (x) Calyon New
York Branch, Bank of Tokyo-Mitsubishi UFJ, LTD, Deutsche Bank AG New York Branch and Wachovia Bank,
National Association as Co-Documentation Agents (the “Co-Documentation Agents”), (y)
JPMorgan Chase Bank, N.A., Mizuho Corporate Bank, Ltd and Sumitomo Mitsui Banking Corporation, New
York as Senior Managing Agents (the “Senior Managing Agents”) and (z) Banca Nationale Del
Lavoro S.P.A. and Morgan Stanley Bank as Managing Agents (the “Managing Agents”) in each
case to act as specified herein and in the other Credit Documents. Each Lender hereby irrevocably
authorizes, and each holder of any Note by the acceptance of such Note shall be deemed irrevocably
to authorize, any Agent to take such action on its behalf under the provisions of this Agreement,
the other Credit Documents and any other instruments and agreements referred to herein or therein
and to exercise such powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of such Agent by the terms hereof and thereof and such other powers as are
reasonably incidental thereto. Each Agent may perform any of its duties hereunder by or through
its respective officers, directors, agents, employees or affiliates.

12.02 Nature of Duties. (a) No Agent shall have any duties or responsibilities
except those expressly set forth in this Agreement and in the other Credit Documents. No Agent nor
any of its respective officers, directors, agents, employees or affiliates shall be liable for any
action taken or omitted by it or them hereunder or under any other Credit Document or in connection
herewith or therewith, unless caused by its or their gross negligence or willful misconduct. The
duties of the Agents shall be mechanical and administrative in nature; no Agent shall have by
reason of this Agreement or any other Credit Document a fiduciary relationship in respect of any
Lender or the holder of any Note; and nothing in this Agreement or any other Credit Document,
expressed or implied, is intended to or shall be so construed as to impose on any Agent any
obligations in respect of this Agreement or any other Credit Document except as expressly set forth
herein or therein.

(b) Notwithstanding any other provision of this Agreement or any provision of any other Credit
Document, each of the Lead Arranger, the Co-Syndication Agents in their capacity as Co-Syndication
Agents, the Senior Managing Agents in their capacity as Senior Managing Agents, the Managing Agents
in their capacity as Managing Agents and the Co-Documentation Agents are named as such for
recognition purposes only, and in their respective capacities as such shall have no powers, duties,
responsibilities or liabilities with respect to this Agreement or the other Credit Documents or the
transactions contemplated hereby and thereby; it being understood and agreed that the Lead
Arranger, the Co-Syndication Agents in their capacity as Co-Syndication Agents, the Senior Managing
Agents in their capacity as Senior Managing Agents, the Managing Agents in their capacity as
Managing Agents and the Co-Documentation Agents shall be entitled to all indemnification and
reimbursement rights in favor of “Agents” as, and to the extent, provided for under Sections 12.06
and 13.01. Without limitation of the foregoing, none of the Lead Arranger, the Co-Syndication
Agents in their capacity as Co-Syndication Agents, the Senior Managing Agents in their capacity as
Senior Managing Agents, the Managing Agents in their capacity as Managing Agents or the
Co-Documentation Agents shall, solely by reason of this Agreement or any other Credit Documents,
have any fiduciary relationship in respect of any Lender or any other Person.

12.03 Lack of Reliance on the Agents. Independently and without reliance upon any
Agent (for purposes of this Section 12.03, the term “Agent” shall include all officers, directors,
agents, employees and affiliates of the respective Agent), each Lender and the holder of each Note,
to the extent it deems appropriate, has made and shall continue to make (i) its own independent
investigation of the financial condition and affairs of the Borrower and its Subsidiaries in
connection with the making and the continuance of the Loans and the taking or not taking of any
action in connection herewith and (ii) its own appraisal of the creditworthiness of the Borrower
and its Subsidiaries and, except as expressly provided in this Agreement, no Agent shall have any
duty or responsibility, either initially or on a continuing basis, to provide any Lender or the
holder of any Note with any credit or other information with respect thereto, whether coming into
its possession before the making of the Loans or at any time or times thereafter. No Agent shall
be responsible to any Lender or the holder of any Note for any recitals, statements, information,
representations or warranties herein or in any document, certificate or other writing delivered in
connection herewith or for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectibility, priority or sufficiency of this Agreement or any other Credit Document
or the financial condition of the Borrower or any of its Subsidiaries or be required to make any
inquiry concerning either the performance or observance of any of the terms, provisions or
conditions of this Agreement or any other Credit Document, or the financial condition of the
Borrower or any of its Subsidiaries or the existence or possible existence of any Default or Event
of Default.

12.04 Certain Rights of the Agents. If any Agent shall request instructions from the
Required Lenders with respect to any act or action (including failure to act) in connection with
this Agreement or any other Credit Document, such Agent shall be entitled to refrain from such act
or taking such action unless and until such Agent shall have received instructions from the
Required Lenders; and such Agent shall not incur liability to any Person by reason of so
refraining. Without limiting the foregoing, no Lender and no holder of any Note shall have any
right of action whatsoever against any Agent as a result of such Agent acting or refraining from
acting hereunder or under any other Credit Document in accordance with the instructions of the
Required Lenders.

12.05 Reliance. Each Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, statement, certificate, telex, teletype or
telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent
or made by any Person that such Agent believed to be the proper Person, and, with respect to all
legal matters pertaining to this Agreement and any other Credit Document and its duties hereunder
and thereunder, upon advice of counsel selected by such Agent.

12.06 Indemnification. To the extent any Agent is not reimbursed and indemnified by
the Credit Parties, the Lenders will reimburse and indemnify such Agent, its affiliates, and their
respective officers, directors, agents and employees, in proportion to their respective
“percentages” as used in determining the Required Lenders (for this purpose, determined as if there
were no Defaulting Lenders at such time), for and against any and all liabilities, obligations,
losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements of
whatsoever kind or nature which may be imposed on, asserted against or incurred by such Agent in
performing its respective duties hereunder or under any other Credit Document, in any way relating
to or arising out of this Agreement or any other Credit Document; provided that no Lender
shall be liable for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements to the extent resulting from the such
Agent’s gross negligence or willful misconduct.

12.07 Each Agent in its Individual Capacity. With respect to its obligation to make
Loans under this Agreement, each Agent shall have the rights and powers specified herein for a
“Lender” and may exercise the same rights and powers as though it were not performing the duties
specified herein; and the term “Lenders,” “Required Lenders,” “holders of Notes” or any similar
terms shall, unless the context clearly otherwise indicates, include each Agent in its individual
capacity. Each Agent may accept deposits from, lend money to, and generally engage in any kind of
banking, investment banking, trust or other business with any Credit Party or any Affiliate of any
Credit Party as if it were not performing the duties specified herein, and may accept fees and
other consideration from any Credit Party for services in connection with this Agreement and
otherwise without having to account for the same to the Lenders.

12.08 Holders. The Administrative Agent may deem and treat the payee of any Note as
the owner thereof for all purposes hereof unless and until a written notice of the assignment,
transfer or endorsement thereof, as the case may be, shall have been filed with the Administrative
Agent. Any request, authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is the holder of any Note shall be conclusive and binding on any
subsequent holder, transferee, assignee or indorsee, as the case may be, of such Note or of any
Note or Notes issued in exchange therefor.

12.09 Resignation by, or Removal of, the Agents. (a) Any Agent (including, without
limitation, the Administrative Agent) may resign from the performance of all its functions and
duties hereunder and/or under the other Credit Documents at any time by giving 30 days’ prior
written notice to the Lenders and the Borrower. Such resignation shall take effect upon the
appointment of a successor Agent pursuant to clauses (b) and (c) below or as otherwise provided
below; provided that each of the Co-Syndication Agents may resign from the performance of
its functions and duties hereunder at any time by giving notice to the Borrower, the Administrative
Agent and the Lenders, which resignation shall take effect upon delivery of such notice.
Furthermore, any Agent may be removed by the Required Lenders in the event that such Agent
committed a willful breach of, or was grossly negligent in the performance of, its material
obligations hereunder (as determined by a court of competent jurisdiction in a final,
non-appealable decision).

(a) Except in the case of a resignation as provided in the proviso appearing in the second
sentence of Section 12.09(a), upon any notice of resignation by, or the removal of, any Agent, the
Required Lenders shall appoint a successor Agent hereunder who shall be a commercial bank or trust
company reasonably acceptable to the Borrower.

(b) If a successor Agent shall not have been so appointed within such 30 day period, the
resigning Agent, with the consent of the Borrower (which consent shall not be unreasonably withheld
or delayed), shall then appoint a successor Agent who shall serve as Agent hereunder or thereunder
until such time, if any, as the Required Lenders appoint a successor Agent as provided above.

(c) If no successor Agent has been appointed pursuant to clause (b) or (c) above by the 40th
day after the date such notice of resignation was given by the resigning Agent, the resigning
Agent’s resignation shall become effective and the Required Lenders shall thereafter perform all
the duties of such Agent hereunder and/or under any other Credit Document until such time, if any,
as the Required Lenders appoint a successor Agent as provided above.

(d) Upon a resignation or removal of any Agent pursuant to this Section 12.09, such Agent
shall remain indemnified to the extent provided in this Agreement and the other Credit Documents
and the provisions of this Section 12 shall continue in effect for the benefit of such Agent for
all of its actions and inactions while serving as an Agent.

SECTION 13. Miscellaneous.

13.01 Payment of Expenses, etc. (a) The Borrower agrees that it shall:  (i) whether
or not the transactions herein contemplated are consummated, pay all reasonable out-of-pocket costs
and expenses of the Agents (including, without limitation, the reasonable fees and disbursements of
White & Case LLP and the Agents’ local and foreign counsel and consultants) in connection with the
preparation, execution and delivery of this Agreement and the other Credit Documents and the
documents and instruments referred to herein and therein and any amendment, waiver or consent
relating hereto or thereto, of the Agents in connection with their syndication efforts with respect
to this Agreement and of the Agents (and, after the occurrence of an Event of Default, each of the
Lenders) in connection with the enforcement of this Agreement and the other Credit Documents and
the documents and instruments referred to herein and therein (including, without limitation, the
reasonable fees and disbursements of counsel for each Agent and each Lender); (ii) pay and hold
each of the Lenders harmless from and against any and all present and future stamp, excise and
other similar documentary taxes with respect to the foregoing matters and save each of the Lenders
harmless from and against any and all liabilities, obligations, losses, damages, penalties and
claims with respect to or resulting from any delay or omission (other than to the extent
attributable to such Lender) to pay such taxes; and (iii) indemnify each Lender (including in its
capacity as Agent) and its affiliates, and each officer, director, trustee, employee,
representative, advisor and agent thereof (each, an “Indemnified Person”) from and hold
each of them harmless against any and all liabilities, obligations (including removal or remedial
actions), losses, damages, penalties, claims, actions, judgments and suits, and all reasonable
costs, expenses and disbursements (including reasonable attorneys’ and consultants’ fees and
disbursements) incurred by, imposed on or assessed against any of them as a result of, or arising
out of, or in any way related to, or by reason of, (a) any investigation, litigation or other
proceeding (whether or not any Agent or any Lender is a party thereto) related to the entering into
and/or performance of this Agreement or any other Credit Document or the use of proceeds of any
Loans hereunder or the consummation of any transactions contemplated herein or in any other Credit
Document or the exercise of any of their rights or remedies provided herein or in the other Credit
Documents, or (b) the actual or alleged presence of Hazardous Materials in the air, surface water
or groundwater or on the surface or subsurface of any Real Property at any time owned or operated
by the Borrower or any of its Subsidiaries, the generation, storage, transportation, handling,
disposal or Release of Hazardous Materials at any Real Property, whether or not owned or operated
by the Borrower or any of its Subsidiaries, the non-compliance of any Real Property with foreign,
federal, state and local laws, regulations, and ordinances (including applicable permits
thereunder) applicable to any Real Property, or any Environmental Claim asserted against, in
connection with or arising from, the Borrower, any of its Subsidiaries or any Real Property at any
time owned or operated by the Borrower or any of its Subsidiaries, including, in each case, without
limitation, the reasonable fees and disbursements of counsel and other consultants incurred in
connection with any such investigation, litigation or other proceeding (but excluding any such
losses, liabilities, claims, damages or expenses of an Indemnified Person, to the extent incurred
by reason of the gross negligence or willful misconduct of such Indemnified Person as determined by
a court of competent jurisdiction in a final and non-appealable decision). To the extent that the
undertaking to indemnify, pay or hold harmless any Agent or any Lender set forth in the preceding
sentence may be unenforceable because it is violative of any law or public policy, the Borrower
shall make the maximum contribution to the payment and satisfaction of each of the indemnified
liabilities which is permissible under applicable law.

(b) To the full extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnified Person, on any theory of liability, for special,
indirect, consequential or incidental damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the
proceeds thereof. No Indemnified Person shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Credit Documents or the transactions contemplated hereby or thereby, except
to the extent the liability of such Indemnified Person results from such Indemnified Person’s gross
negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and
non-appealable decision) .

13.02 Right of Setoff. In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence
of an Event of Default, each Lender is hereby authorized (to the extent not prohibited by
applicable law) at any time or from time to time, without presentment, demand, protest or other
notice of any kind to any Credit Party or to any other Person, any such notice being hereby
expressly waived, to set off and to appropriate and apply any and all deposits (general or special)
and any other Indebtedness at any time held or owing by such Lender (including, without limitation,
by branches and agencies of such Lender wherever located) to or for the credit or the account of
any Credit Party against and on account of the Obligations and liabilities of such Credit Party to
such Lender under this Agreement or under any of the other Credit Documents, including, without
limitation, all interests in Obligations purchased by such Lender pursuant to Section 13.06(b), and
all other claims of any nature or description arising out of or connected with this Agreement or
any other Credit Document, irrespective of whether or not such Lender shall have made any demand
hereunder and although said Obligations, liabilities or claims, or any of them, shall be contingent
or unmatured.

13.03 Notices. (a) Except as otherwise expressly provided herein (and except as provided
in Section 13.03(b) below), all notices and other communications provided for hereunder shall be in
writing (including telegraphic, telex, telecopier or cable communication) and mailed, telegraphed,
telexed, telecopied, cabled or delivered: if to any Credit Party, at c/o Starwood Hotels & Resorts
Worldwide, Inc., 2231 E. Camelback Rd., Suite 400, Phoenix, Arizona 85016, Attention: Treasurer
and c/o Starwood Hotels and Resorts Worldwide, Inc., 1111 Westchester Avenue, White Plains, New
York 10604, Attention: General Counsel; if to any Lender, at its address specified on Schedule II;
and if to the Administrative Agent, at its Notice Office; or, as to any Credit Party or any Agent,
at such other address as shall be designated by such party in a written notice to the other parties
hereto and, as to each Lender, at such other address as shall be designated by such Lender in a
written notice to the Borrower and the Administrative Agent. All such notices and communications
shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by overnight courier, be
effective (x) three Business Days after deposited in the mails, (y) one Business Day after
delivered to the telegraph company, cable company or a recognized overnight courier, as the case
may be, or (z) when sent by telex or telecopier, except that notices and communications to the
Agents shall not be effective until received by the Agents. Notices delivered through electronic
communications to the extent provided in Section 13.03(b) below, shall be effective as provided in
such Section.

(b) Electronic Communications. Notices and other communications to the Lenders
hereunder may be delivered or furnished by electronic communication (including e-mail and Internet
or intranet websites) pursuant to procedures approved by the Administrative Agent, provided
that the foregoing shall not apply to notices to any Lender pursuant to Section 1 or Section 4 if
such Lender, has notified the Administrative Agent that it is incapable of receiving notices under
such Section by electronic communication. The Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

(c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any
Lender or any other Person for losses, claims, damages, liabilities or expenses of any kind
(whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative
Agent’s transmission of Borrower Materials through the Internet, except to the extent that such
losses, claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Agent Party; provided, however, that in no event shall
any Agent Party have any liability to the Borrower, any Lender or any other Person for indirect,
special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

(d) “Private Side” Designation, Etc. Each Public Lender agrees to cause at least one
individual at or on behalf of such Public Lender to at all times have selected the “Private Side
Information” or similar designation on the content declaration screen of the Platform in order to
enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance
procedures and applicable law, including United States Federal and state securities laws, to make
reference to Borrower Materials that are not made available through the “Public Side Information”
portion of the Platform and that may contain material non-public information with respect to the
Borrower or its securities for purposes of United States Federal or state securities laws.

13.04 Benefit of Agreement; Assignments; Participations. (a) This Agreement shall be
binding upon and inure to the benefit of and be enforceable by the respective successors and
assigns of the parties hereto; provided, however, that the Borrower may not assign
or transfer any of its rights, obligations or interest hereunder or under any Credit Document
without the prior written consent of the Agents and all the Lenders (except that, with the consent
of the Required Lenders, the Borrower may assign or transfer its rights hereunder and under the
other Credit Documents to which it is a party in connection with a merger or consolidation with or
into another Person as contemplated by (and in accordance with the requirements of) Section 9.02)
and, provided further, that, although any Lender may transfer or grant participations in
its rights hereunder to any Eligible Transferee, such Lender shall remain a “Lender” for all
purposes hereunder (and may not transfer or assign all or any portion of its Commitments and/or
outstanding Loans hereunder except as provided in Section 13.04(b)) and the participant shall not
constitute a “Lender” hereunder and, provided further, that no Lender shall transfer or
grant any participation under which the participant shall have rights to approve any amendment to
or waiver of this Agreement or any other Credit Document except to the extent such amendment or
waiver would (i) extend the final scheduled maturity of any Loan or Note beyond the applicable
Maturity Date, or reduce the rate or extend the time of payment of interest (except in connection
with a waiver of applicability of any post-default increase in interest rates) or Fees thereon or
reduce the principal amount thereof (except to the extent repaid in cash) (it being understood that
any amendment or modification to the financial definitions in this Agreement or to Section 13.07(a)
or (b) shall not constitute a reduction in any rate of interest or fees for purposes of this
clause (i), so long as the primary purpose of the respective amendments or modifications to the
financial definitions was not to reduce the interest or Fees payable hereunder), or increase the
amount of the participant’s participation over the amount thereof then in effect (it being
understood that a waiver of any Default or Event of Default shall not constitute a change in the
terms of such participation, and that an increase in any Commitment or Loan shall be permitted
without the consent of any participant if the participant’s participation is not increased as a
result thereof), (ii) consent to the assignment or transfer by the Borrower of any of its rights
and obligations under this Agreement (except that, with the consent of the Required Lenders, the
Borrower may assign or transfer its rights hereunder in connection with a merger or consolidation
with or into another Person as contemplated by (and in accordance with the requirements of) Section
9.02) and (iii) release any Guarantor from the Subsidiaries Guaranty (unless such Guarantor ceases
to be a borrower and a guarantor under the Existing Credit Agreement) (it being understood,
however, that the assumption by another Person of any Guarantor’s obligations under the
Subsidiaries Guaranty in connection with a merger or consolidation of such Guarantor with such
other Person as contemplated by (and in accordance with the requirements of) Section 9.02 shall not
be construed to be a release of such Guarantor from its Guaranty). In the case of any such
participation, the participant shall not have any rights under this Agreement or any of the other
Credit Documents (the participant’s rights against such Lender in respect of such participation to
be those set forth in the agreement executed by such Lender in favor of the participant relating
thereto) and the Borrower shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under this Agreement and the other Credit Documents and
all amounts payable by the Borrower hereunder shall be determined as if such Lender had not sold
such participation.

(b) Notwithstanding the foregoing, any Lender (or any Lender together with one or more other
Lenders) may (x) assign all or a portion of its outstanding Obligations hereunder to an Eligible
Transferee which is (i) (a) its parent company and/or any affiliate of such Lender which is at
least 50% owned by such Lender or its parent company or (b) to one or more Lenders or (ii) in the
case of any Lender that is a fund that invests in bank loans, any other fund that invests in bank
loans and is managed or advised by the same investment advisor of such Lender or by an Affiliate of
such investment advisor, or (y) assign all, or if less than all, a portion equal to at least
$1,000,000 in the aggregate for the assigning Lender or assigning Lenders, of such outstanding
Obligations hereunder to one or more Eligible Transferees (treating any fund that invests in loans
and any other fund that invests in loans and is managed or advised by the same investment advisor
of such fund or by an Affiliate of such investment advisor as a single Eligible Transferee), each
of which assignees shall become a party to this Agreement as a Lender by execution of an Assignment
and Assumption Agreement, provided that, (i) at such time Schedule I shall be deemed
modified to reflect the outstanding Loans of such new Lender and of the existing Lenders, (ii) upon
the surrender of the relevant Notes by the assigning Lender (or, upon such assigning Lender’s
indemnifying the Borrower for any lost Note pursuant to a customary indemnification agreement) new
Notes will be issued, at the Borrower’s expense, to such new Lender and to the assigning Lender
upon the request of such new Lender or assigning Lender, such new Notes to be in conformity with
the requirements of Section 1.06 (with appropriate modifications) to the extent needed to reflect
the revised outstanding Loans, (iii) the consent of the Administrative Agent (not to be
unreasonably withheld or delayed) shall be required in connection with any assignment to an
Eligible Transferee pursuant to clause (y) above, (iv) at any time when no Specified Default or
Event of Default is in existence, the approval of the Borrower shall be required (except with
respect to assignments pursuant to clause (x) above), which approval shall not be unreasonably
withheld or delayed, (v) the Administrative Agent shall receive at the time of each such
assignment, from the assigning or assignee Lender, the payment of a non-refundable assignment fee
of $3,500, and (vi) promptly after such assignment, the Borrower shall have received from the
Administrative Agent notice of any such assignment and of the identity, nationality and applicable
lending office of any such Eligible Transferee that is not a United States Person (as defined in
Section 7701(a)(30) of the Code), together with the copy of the Assignment and Assumption Agreement
relating thereto and, provided further, that such transfer or assignment will not be
effective until recorded by the Administrative Agent on the Register pursuant to Section 13.15
hereof. To the extent of any assignment pursuant to this Section 13.04(b), the assigning Lender
shall be relieved of its obligations hereunder with respect to its assigned outstanding Loans. At
the time of each assignment pursuant to this Section 13.04(b) to a Person which is not already a
Lender hereunder and which is not a United States Person (as such term is defined in
Section 7701(a)(30) of the Code) for Federal income tax purposes, the respective assignee Lender
shall, to the extent legally entitled to do so, provide to the Borrower the U.S. Internal Revenue
Forms (and, if applicable a Section 4.04(b)(ii) Certificate) described Section 4.04(b). To the
extent that an assignment of all or any portion of a Lender’s outstanding Obligations pursuant to
Section 1.14 or this Section 13.04(b) would, at the time of such assignment, result in increased
costs under Section 1.11 or 4.04 in excess of those being charged by the respective assigning
Lender prior to such assignment, then the Borrower shall not be obligated to pay such excess
increased costs (although the Borrower, in accordance with and pursuant to the other provisions of
this Agreement, shall be obligated to pay the costs which are not in excess of those being charged
by the respective assigning Lender prior to such assignment and any subsequent increased costs of
the type described above resulting from changes after the date of the respective assignment).

(c) Nothing in this Agreement shall prevent or prohibit any Lender from pledging its Loans and
Notes hereunder to a Federal Reserve Bank in support of borrowings made by such Lender from such
Federal Reserve Bank and, with prior notification to the Administrative Agent (but without the
consent of the Administrative Agent or the Borrower), any Lender which is a fund may pledge all or
any portion of its Loans and Notes to its trustee or to a collateral agent providing credit or
credit support to such Lender in support of its obligations to such trustee, such collateral agent
or a holder of such obligations, as the case may be. No pledge pursuant to this clause (c) shall
release the transferor Lender from any of its obligations hereunder.

13.05 No Waiver; Remedies Cumulative. No failure or delay on the part of any Agent or
any Lender in exercising any right, power or privilege hereunder or under any other Credit Document
and no course of dealing between the Borrower or any other Credit Party and any Agent or any Lender
shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder or under any other Credit Document preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder or thereunder. The
rights, powers and remedies herein or in any other Credit Document expressly provided are
cumulative and not exclusive of any rights, powers or remedies which any Agent or any Lender would
otherwise have. No notice to or demand on any Credit Party in any case shall entitle any Credit
Party to any other or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of any Agent or any Lender to any other or further action in any circumstances
without notice or demand.

13.06 Payments Pro Rata. (a) Except as otherwise provided in this Agreement, the
Administrative Agent agrees that promptly after its receipt of each payment from or on behalf of
the Borrower in respect of any Obligations hereunder, it shall distribute such payment to the
Lenders entitled thereto (other than any Lender that has consented in writing to waive its
pro rata share of any such payment) pro rata based upon their
respective shares, if any, of the Obligations with respect to which such payment was received.

(b) Except to the extent that this Agreement provides for payments to be allocated to the
Lenders under a particular Tranche or with particular Obligations, if any Lender (a “Benefitted
Lender”) shall at any time receive any payment of all or part of its Loans or the other
Obligations owing to it, or interest thereon, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred
to in Section 10.05, or otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of such other Lender’s Loans or the other
Obligations owing to such other Lender, or interest thereon, such Benefitted Lender shall purchase
for cash from the other Lender a participating interest in such portion of each such other Lender’s
Loans and/or other Obligations owing to each such other Lender, or shall provide such other Lenders
with the benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause
such Benefitted Lender to share the excess payment or benefits of such collateral or proceeds
ratably with each of the Lenders; provided, however, that if all or any portion of
such excess payment or benefits is thereafter recovered from such Benefitted Lender, such purchase
shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery,
but without interest.

(c) Notwithstanding anything to the contrary contained herein, the provisions of preceding
Sections 13.06(a) and (b) shall be subject to the express provisions of this Agreement which (x)
require differing payments to be made with respect to the various Tranches of Loans or (y) prohibit
payments in respect of any Tranche of Loans.

13.07 Calculations; Computations. (a)  The financial statements to be furnished to
the Lenders pursuant hereto shall be made and prepared in accordance with GAAP, consistently
applied throughout the periods involved (except as set forth in the notes thereto or as otherwise
disclosed in writing by the Borrower to the Lenders).

(b) Notwithstanding anything to the contrary contained in clause (a) of this Section 13.07,
except as expressly otherwise provided herein, all calculations determining the “Applicable
Margins”, compliance with Section 9 and the financial terms as used herein shall be made in
accordance with GAAP.

(c) All computations of interest and Fees hereunder shall be made on the basis of a year of
360 days (or 365 or 366 days, as the case may be, in the case of interest on Base Rate Loans) for
the actual number of days (including the first day but excluding the last day) occurring in the
period for which such interest or Fees are payable.

13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.
(a)  THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS (EXCEPT, IN THE CASE OF OTHER CREDIT DOCUMENTS,
AS SPECIFICALLY OTHERWISE PROVIDED THEREIN) AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW
YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER HEREBY
IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. THE BORROWER HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM
THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER THE BORROWER, AND AGREES NOT TO PLEAD OR
CLAIM, IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENTS BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL JURISDICTION
OVER THE BORROWER. THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY
OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT ITS ADDRESS SET FORTH OPPOSITE
ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. THE BORROWER
HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES
AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER
CREDIT DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN
SHALL AFFECT THE RIGHT OF ANY AGENT, ANY LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE
BORROWER IN ANY OTHER JURISDICTION.

(b) THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a)
ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT
ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

13.09 Counterparts. This Agreement may be executed in any number of counterparts and
by the different parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one and the same
instrument. A set of counterparts executed by all the parties hereto shall be lodged with the
Borrower and the Administrative Agent.

13.10 Effectiveness. This Agreement shall become effective on the date
(the “Effective Date”) on which the Borrower, each Agent and each of the Lenders shall have
signed a counterpart hereof (whether the same or different counterparts) and shall have delivered
the same to the Administrative Agent at the Notice Office or, in the case of the Lenders, shall
have given to the Administrative Agent telephonic (confirmed in writing), written or telex notice
(actually received) at such office that the same has been signed and mailed to it. The
Administrative Agent shall give the Borrower and each Lender prompt written notice of the
occurrence of the Effective Date.

13.11 Headings Descriptive. The headings of the several sections and subsections of
this Agreement are inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Agreement.

13.12 Amendment or Waiver; etc. (a)  Neither this Agreement nor any other Credit
Document nor any terms hereof or thereof may be changed, waived, discharged or terminated unless
such change, waiver, discharge or termination is in writing signed by the respective Credit Parties
party thereto and the Required Lenders, provided that no such change, waiver, discharge or
termination shall, without the consent of each Lender (other than a Defaulting Lender) with
Obligations being directly affected thereby, (i) extend the final scheduled maturity of any Loan or
Note beyond the applicable Maturity Date, or reduce the rate or extend the time of payment of
interest (except in connection with a waiver of applicability of any post-default increase in
interest rates) or Fees thereon or reduce the principal amount thereof (except to the extent repaid
in cash) (it being understood that any amendment or modification to the financial definitions in
this Agreement or to Section 13.07(a) or (b) shall not constitute a reduction in any rate of
interest or fees for purposes of this clause (i), so long as the primary purpose of the respective
amendments or modifications to the financial definitions was not to reduce the interest or Fees
payable hereunder), (ii) amend, modify or waive any provision of this Section 13.12 (except for
technical amendments with respect to additional extensions of credit pursuant to this Agreement
which afford the protections set forth in the proviso below to such additional extensions of
credit), (iii) reduce the percentage specified in the definition of Required Lenders (it being
understood that, with the consent of the Required Lenders, additional extensions of credit pursuant
to this Agreement may be included in the determination of the Required Lenders on substantially the
same basis as the extensions of Loans are included on the Closing Date), (iv) consent to the
assignment or transfer by the Borrower of any of its rights and obligations under this Agreement
(except that, with the consent of the Required Lenders, the Borrower may assign or transfer its
rights hereunder in connection with a merger or consolidation with or into another Person as
contemplated by (and in accordance with the requirements of) Section 9.02) or (v) release any
Guarantor from the Subsidiaries Guaranty (except in accordance with the express terms of the
Subsidiaries Guaranty) (it being understood, however, that the assumption by another Person of any
Guarantor’s obligations under the Subsidiaries Guaranty in connection with a merger or
consolidation of such Guarantor with such other Person as contemplated by (and in accordance with
the requirements of) Section 9.02 shall not be construed to be a release of such Guarantor from the
Subsidiaries Guaranty); provided further, that, in addition to the consent of the Required
Lenders required above, no such change, waiver, discharge or termination shall (x) increase the
Commitments of any Lender over the amount thereof then in effect without the consent of such Lender
(it being understood that waivers or modifications of conditions precedent, covenants or Defaults
or Events of Default shall not constitute an increase of the Commitment of any Lender, and that an
increase in the available portion of any Commitment of any Lender shall not constitute an increase
of the Commitment of such Lender), or (y) without the consent of the respective Agent, amend,
modify or waive any provision of Section 12 or any other provision as same relates to the rights or
obligations of such Agent.

(b) If, in connection with any proposed change, waiver, discharge or termination to any of the
provisions of this Agreement as contemplated by clauses (i) through (v), inclusive, of the first
proviso to Section 13.12(a), the consent of the Required Lenders is obtained but the consent of one
or more of such other Lenders whose consent is required is not obtained, then the Borrower shall
have the right, so long as all non-consenting Lenders whose individual consent is required are
treated as described below, to replace each such non-consenting Lender or Lenders with one or more
Replacement Lenders pursuant to Section 1.14 so long as at the time of such replacement, each such
Replacement Lender consents to the proposed change, waiver, discharge or termination, provided
further, that in any event the Borrower shall not have the right to replace a Lender solely as
a result of the exercise of such Lender’s rights (and the withholding of any required consent by
such Lender) pursuant to the second proviso to Section 13.12(a).

(c) Notwithstanding anything to the contrary contained above in this Section 13.12, at any
time prior to the exercise of any rights or remedies by the Administrative Agent pursuant to the
last paragraph of Section 10 (including any automatic acceleration of the Loans in the
circumstances contemplated thereby), in the event the Required Lenders under, and as defined in,
the Existing Credit Agreement enter into any amendment, waiver or consent in respect of any
provision of any affirmative covenant, negative covenant or event of default contained in the
Existing Credit Agreement (or any definition as used in any such provision) for which a
corresponding provision (or definition) exists in this Agreement, such amendment, waiver or
modification shall apply automatically to such corresponding provision (or definition) of this
Agreement, mutatis mutandi, without the consent of the Required Lenders and without any action by
the Borrower, to the same extent as if such amendment, waiver or modification had been approved by
the Required Lenders and the Borrower hereunder; provided that (w) no such automatic
amendment, waiver or modification of any provision of this Agreement shall result from the
operation of this Section 13.12 (c), unless such amendment, waiver or modification would (in the
absence of this Section 13.12(c)) require only the approval of the Required Lenders (and not each
Lender or each affected Lender), (x) notice of such amendment, waiver or consent shall have been
given to the Administrative Agent as provided in Section 8.01(h), (y) any such amendment, waiver or
consent in respect of the Existing Credit Agreement to be given effect hereby shall apply at all
times equally to the Existing Credit Agreement in the manner such amendment, waiver or consent
applies to this Agreement and (z) Section 8.12 shall not be subject to the provisions of this
Section 13.12(c) (it being understood, however, that this subclause (z) shall not be construed to
limit (i) the release of any Guarantor from the Subsidiaries Guarantees in accordance with the
terms thereof or (ii) the ability of the Borrower to obtain an amendment to the Existing Credit
Agreement that eliminates the subsidiary guarantees under the Existing Credit Agreement, the
practical effect of which is to eliminate the requirement for the execution and delivery of the
Subsidiaries Guaranty pursuant to Section 8.12).

13.13 Survival. All indemnities set forth herein including, without limitation, in
Sections 1.11, 1.12, 4.04, 12.06 and 13.01 shall survive the execution, delivery and termination of
this Agreement, the Notes and the other Credit Documents and the making and repayment of the
Obligations (it being understood and agreed that all such indemnities shall also survive as to any
Lender that has assigned all of its obligations hereunder pursuant to Section 13.04(b) with respect
to the period of time in which such Lender was a “Lender” hereunder).

13.14 Domicile of Loans. Each Lender may transfer and carry its Loans at, to or for
the account of any office, Subsidiary or Affiliate of such Lender. Notwithstanding anything to the
contrary contained herein, to the extent that a transfer of Loans pursuant to this Section 13.14
would, at the time of such transfer, result in increased costs under Section 1.11, 1.12 or 4.04 in
excess of those being charged by the respective Lender prior to such transfer, then the Borrower
shall not be obligated to pay such excess increased costs (although the Borrower, in accordance
with and pursuant to the other provisions of this Agreement, shall be obligated to pay the costs
which would apply in the absence of such designation and any subsequent increased costs of the type
described above resulting from changes after the date of the respective transfer).

13.15 Register. The Borrower hereby designates the Administrative Agent to serve as
the Borrower’s agent, solely for purposes of this Section 13.15, to maintain a register
(the “Register”) on which it will record the Commitments from time to time of each of the
Lenders, the Loans made by each of the Lenders and each repayment in respect of the principal
amount of the Loans of each Lender. Failure to make any such recordation, or any error in such
recordation, shall not affect the Borrower’s obligations in respect of such Loans. With respect to
any Lender, the transfer of the Commitments of such Lender and the rights to the principal of, and
interest on, any Loan made pursuant to such Commitments shall not be effective until such transfer
is recorded on the Register maintained by the Administrative Agent with respect to ownership of
such Commitments and Loans and prior to such recordation all amounts owing to the transferor with
respect to such Commitments and Loans shall remain owing to the transferor. The registration of
assignment or transfer of all or part of any Commitments and Loans shall be recorded by the
Administrative Agent on the Register only upon the acceptance by the Administrative Agent of a
properly executed and delivered Assignment and Assumption Agreement pursuant to Section 13.04(b).
Coincident with the delivery of such an Assignment and Assumption Agreement to the Administrative
Agent for acceptance and registration of assignment or transfer of all or part of a Loan, or as
soon thereafter as practicable, the assigning or transferor Lender shall surrender the Note, if
any, evidencing such Loan, and thereupon one or more new Notes in the same aggregate principal
amount shall, if requested, be issued to the assigning or transferor Lender and/or the new Lender.
The Borrower jointly and severally agrees to indemnify the Administrative Agent from and against
any and all losses, claims, damages and liabilities of whatsoever nature which may be imposed on,
asserted against or incurred by the Administrative Agent in performing its duties under this
Section 13.15.

13.16 [RESERVED](a) .

13.17 Confidentiality. (a)  Subject to the provisions of clause (b) of this
Section 13.17, each Lender agrees that it will use its reasonable best efforts not to disclose
without the prior consent of the Borrower (other than to its employees, officers, directors,
auditors, advisors or counsel or to another Lender if the Lender or such Lender’s holding or parent
company in its sole discretion determines that any such party should have access to such
information, provided such Persons shall be subject to the provisions of this Section 13.17 to the
same extent as such Lender) any information with respect to the Borrower or any of its Subsidiaries
which is now or in the future furnished pursuant to this Agreement or any other Credit Document,
provided that any Lender may disclose any such information (a) as has become generally
available to the public other than by virtue of a breach of this Section by such Lender, (b) to the
extent such information was legally in possession of such Lender prior to its receipt from or on
behalf of the Borrower or any of its Subsidiaries and was from a source not known to such Lender to
be (x) bound by a confidentiality agreement with the Borrower or (y) otherwise prohibited from
transmitting such information to such Lender by a contractual, legal or fiduciary obligation, (c)
such information becomes available to such Lender from a source other than the Borrower or any of
its Subsidiaries and such source is not known to such Lender to be (x) bound by a confidentiality
agreement with the Borrower or (y) otherwise prohibited from transmitting such information to such
Lender by a contractual, legal or fiduciary obligation, (d) as may be required or reasonably
appropriate in any report, statement or testimony submitted to, or in response to a request from,
any municipal, state or Federal governmental or regulatory body having or claiming to have
jurisdiction over such Lender or to the Federal Reserve Board, the Federal Deposit Insurance
Corporation, the NAIC or similar organizations (whether in the United States or elsewhere) or their
successors, (e) as may be required or reasonably appropriate in response to any summons or subpoena
or in connection with any litigation, (f) in order to comply with any Requirement of Law applicable
to such Lender, (g) to any Agent or any other Lender, (h) to any direct or indirect contractual
counterparties in swap agreements or such contractual counterparties’ professional advisors;
provided that such contractual counterparty or professional advisor to such contractual
counterparty agrees in writing to keep such information confidential to the same extent required of
the Lenders thereunder, and (i) to any prospective or actual transferee or participant in
connection with any contemplated transfer or participation of any of the Notes or Commitments or
any interest therein by such Lender, provided that such prospective transferee shall have
agreed to be subject to the provisions of this Section 13.17(a).

(b) The Borrower hereby acknowledges and agrees that each Lender may, in connection with the
Transaction or the participation of such Lender pursuant to this Agreement and the other Credit
Documents, share with any of its affiliates any information related to the Borrower or any of its
Subsidiaries (including, without limitation, any nonpublic customer information regarding the
creditworthiness of the Borrower and its Subsidiaries, provided such Persons shall be subject to
the provisions of this Section 13.17 to the same extent as such Lender).

13.18 Patriot Act Each Lender subject to the USA PATRIOT ACT (Title 111 of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the Borrower that
pursuant to the requirements of the Act, it is required to obtain, verify and record information
that identifies the Borrower and the other Credit Parties and other information that will allow
such Lender to identify the Borrower and the other Credit Parties in accordance with the Act.

13.19 Post-Closing Actions. Notwithstanding anything to the contrary contained in
this Agreement or the other Credit Documents, the parties hereto acknowledge and agree that the
actions described on Schedule III shall be completed in accordance with the requirements of
Schedule III. The provisions of Schedule III shall be deemed incorporated herein by reference as
fully as if set forth herein in its entirety.

All provisions of this Credit Agreement and the other Credit Documents (including, without
limitation, all conditions precedent, representations, warranties, covenants, events of default and
other agreements herein and therein) shall be deemed modified to the extent necessary to effect the
foregoing (and to permit the taking of the actions described above within the time periods required
by Schedule III, rather than as otherwise provided in the Credit Documents). The parties hereto
acknowledge and agree that the failure to take any of the actions required above, within the
relevant time periods required above, shall give rise to an immediate Event of Default pursuant to
this Agreement.

3

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to
execute and deliver this Agreement as of the date first above written.

	 
	STARWOOD HOTELS & RESORTS WORLDWIDE, INC., as Borrower

By:

	 

	Name:

	Title:

	BANK OF AMERICA, N.A.,

Individually and as Administrative Agent

By:

	 

	Name:

	Title:

	By:

	 

	Name:

	Title:

4

SIGNATURE PAGE TO THE CREDIT AGREEMENT, DATED AS OF JUNE
29, 2007, AMONG STARWOOD HOTELS & RESORTS WORLDWIDE,
INC., THE LENDERS FROM TIME TO TIME PARTY THERETO AND
BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT

[     ]

By:  

Name:

Title:

S.NEXT

5AGREEMENT AND PLAN OF REORGANIZATION

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (the “Agreement”) is entered into effective the 27th day of June, 2007, by and between Global Sports Edge, Inc., a Delaware corporation, hereinafter referred to as “Seller”, Winning Edge International, Inc., a Delaware corporation ("Winning Edge"), parent corporation of Seller, Wayne Allyn Root, an individual having an address at 4 Bloomfield Hills Drive, Henderson, Nevada 89052, hereinafter referred to as "Mr. Root", and Betbrokers PLC, a corporation organized under the laws of the United Kingdom, hereinafter referred to as “Buyer,” based on the following:

Premises

a)

Seller is the owner of a business providing sports handicapping information through television, radio and internet outlets.  Additionally, Seller produces sports and gaming entertainment programming and sells advertising and sponsorship opportunities on its TV and radio programs. Winning Edge has no operations or assets except through its ownership of Seller.

b)

Seller is interested in selling its assets and business operation.  Buyer is interested in acquiring the assets, including web site, TV rights and programming and contracts from Seller.  Accordingly, Seller and Buyer want to set forth in this Agreement the terms and conditions of the purchase.

 

Agreement

Based on the stated premises, which are incorporated herein by reference, and for and in consideration of the mutual covenants and agreements hereinafter set forth, the mutual benefits to the parties to be derived herefrom, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, it is hereby agreed as follows:

ARTICLE I

Sale and Transfer of Assets

1.01

Sale of Assets.  On the terms, and subject to the conditions, set forth in this Agreement, on the closing date and in consideration of the payment to the Seller of the Purchase Price, Seller agrees to sell, transfer, convey and deliver to Buyer and Buyer agrees to accept and purchase all of Seller’s assets and equipment, used in connection with its business known as Winning Edge (hereinafter all assets and the business are referred to as the “Business”) including, without limiting the generality of the foregoing, the tangible personal property, intangible property and equipment all as more particularly described in Exhibit “A,”  (the “Assets”), attached hereto and incorporated herein by this reference, and used in connection with the operation of the Business and any other tangible and intangible items of Seller.  Seller and Buyer specifically acknowledge that no deposits or receivables of Seller are being transferred as part of the Assets.  The Business and Assets shall include:

(a)

the Customer List relating to the Business;

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(b)

all inventory and work in process of the Business;

(c)

to the extent assignable by the Seller, the contracts, licenses, leases, purchase orders and agreements related to the Business, as they may change from the date hereof to the Closing Date in the ordinary course of business (the "Contracts"); 

(d)

the personal property used in the Business; 

(e)

the patents and other intellectual property related to the Business (if and to the extent that such patents or other intellectual property is held by an affiliate of Seller, Seller shall cause such affiliate to convey such property to Purchaser); 

(f) 

all goodwill attendant to the foregoing including, without limitation, websites, domain names, including but not limited to WinningEdge.com and ewinners.com, all telephone numbers, facsimile numbers, tradenames and corporate names of Seller, including any governmental license, approval or authorization (collectively, the "Licenses") obtained by the Seller for the conduct of the Business that is transferable by the Seller.

(g)

the television program Wayne Allyn Root’s Winning EdgeTM.

(h)

Five Hundred Eighty-One Thousand Five Hundred United States Dollars (U.S $581,500) in cash, computed as follows:  Five Hundred Thousand United States Dollars (U.S. $500,000), plus One Hundred Thousand United States Dollars (U.S. $100,000) on account of advertising contracts assumed by Buyer, less an Eighteen Thousand Five Hundred United States Dollars (U.S. $18,500) security deposit for Seller's premises, which deposit is being transferred to Buyer.

The Assets to be purchased as set forth herein are in each case “AS IS, WHERE IS,” meaning that except as otherwise specifically provided in this agreement, no representation is made as to their condition, value and enforceability.  Except as specifically set forth herein, no other assets of Seller are to be sold, transferred, conveyed or delivered to Buyer.  

1.02

Consideration for Sale and Transfer of Assets and Business. In consideration of the conveyance from Seller to Buyer of the Business and Assets, Buyer shall pay to Seller Buyer's stock having a value of Six Million Eight Hundred Thousand United States Dollars (U.S. $6,800,000) (the "Purchase Price"), such stock being in like form to that stock of Buyer which currently trades on the London Stock Exchange Alternative Investment Market ("AIM"); provided that, Six Million Five Hundred Thousand United States Dollars (U.S. $6,500,000) of the value in such shares of Buyer's stock shall be delivered to the Laurus Master Fund Ltd., a Cayman Islands company, (the "First Escrow Agent" or "Laurus"), as escrow agent pursuant to the escrow agreement attached hereto as Schedule 1.02A (the “First Escrow Agreement”), and shall deliver to Seller shares of Buyer's stock valued at Three Hundred Thousand United States Dollars (U.S. $300,000).   Solely for purposes of this Agreement, the value of the shares of Buyer’s stock shall be determined by the average of the closing bid price on the five consecutive trading days prior to Closing.  The closing share price shall be determined based on the closing trading price on the AIM.  All shares of Buyer's stock delivered shall be freely tradable, subject to the terms of the First Escrow Agreement and the hereinafter referred to Undertaking and Covenant. Seller has executed and delivered to Buyer the Undertaking and Covenant attached hereto as Schedule 1.02B.

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1.03

Further Assurances.  At the Closing and from time to time thereafter, Seller shall execute such additional instruments and take such other action as Buyer may reasonably request, without undue cost to Seller in order to more effectively sell, transfer, and assign clear title and ownership to the Business and the Assets.

1.04

Closing and Parties.  The Closing contemplated hereby shall be held at a mutually agreed upon time and place (the “Closing Date”) but no later than July 31, 2007, or on such date that all required corporate action has been accomplished including any shareholder approval required by Seller’s parent corporation, Winning Edge.  The Closing may be accomplished by wire, express mail, overnight courier, conference telephone call or as otherwise agreed to by the respective parties or their duly authorized representatives.

1.05

Access to Properties Prior to Closing.  Until the Closing Date, Buyer and Seller will afford to the Buyer’s officers, managers and authorized representatives full access to the Business in order that Buyer may have full opportunity to make such reasonable investigation as it shall desire to make of the Business and will furnish Buyer with such information as to the Business as Buyer shall from time to time reasonably request.

1.06

Transfer Documents.  Seller shall execute such bills of sale and assignments to transfer all personal and intellectual property of Seller into the name of Buyer as requested.

1.07

Liabilities.

(a)

Except for the liabilities specifically assumed under the terms of this Agreement, the sale of the Business and Assets by the Seller to the Buyer hereunder is free and clear of all claims, liens, encumbrances, security interests and third party interests whatsoever. Without limiting the generality of the foregoing, it is understood and agreed, the Buyer shall not assume and will not be responsible to pay any debts, liabilities, obligations, contracts, leases, commitments or other undertakings of the Seller, known or unknown, accrued, contingent or otherwise, as each of the foregoing shall exist on or prior to the date hereof or as the foregoing shall exist after the date hereof by reason of the Seller's acts or omissions prior to, on or after the date hereof, including, but not limited to, liabilities of the following types, all of which shall remain the sole liability and responsibility of the Seller (collectively, the "Excluded Liabilities"): (i) taxes payable by the Seller as of the Closing Date; (ii) tort liabilities; (iii) claims arising prior to the Closing Date, or arising after the Closing Date that are due to any action or inaction of Seller or any officer, director, employee or affiliate of Seller before the Closing Date, out of actual or alleged pollution of the environment or of any Environmental Laws (as hereinafter defined); (iv) litigation, whether disclosed or undisclosed; and (v) obligations under any collective bargaining, pension or profit sharing agreement.  Seller and Winning Edge agree to jointly and severally defend, indemnify and hold Buyer harmless from and against any and all Excluded Liabilities (including attorneys fees paid by Buyer in connection therewith).  Such covenant shall survive the Closing Date and the consummation of the transactions herein contemplated.

(b)

Notwithstanding the foregoing it is understood and agreed that the Purchaser shall assume from and after the Closing Date the obligation to perform Seller's obligations under the Contracts listed in Schedule 1.07 (the "Assumed Liabilities"). 

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1.08

Termination Prior to Closing.

(a)

Termination by the Buyer.  This Agreement may be terminated by the Buyer, in its sole discretion, upon the occurrence of any of the following before the Closing Date:

(i)

The Seller's representations and warranties contained herein shall have been incorrect or inaccurate in any material respect;

(ii)

The Seller shall fail to meet any of its material obligations pursuant to this Agreement, provided that the Buyer will notify the Seller of such failure and the Seller shall have 10 business days to cure the same; or

(iii)

Any condition precedent to the Buyer's obligations hereunder shall not be satisfied and such condition is not waived by the Buyer at or prior to Closing Date; or

(iv)

All of the conditions to the Buyer's obligation to close shall have been satisfied and the Seller shall fail to close by August 31, 2007.

(b)

Termination by the Seller.  This Agreement may be terminated by the Seller, in its sole discretion, upon the occurrence of any of the following before the Closing Date:

(i)

The Buyer's representations and warranties contained herein shall have been incorrect or inaccurate in any material respect when made;  

(ii)

The Buyer shall fail to meet any of its material obligations pursuant to this Agreement, provided that the Seller will notify the Buyer of such failure and the Buyer will have 10 business days to cure the same; or

(iii)

Any condition precedent to the Seller's obligations hereunder shall not be satisfied and such condition is not waived by Seller at or prior to the Closing Date; or

(iv)

All of the conditions to the Seller's obligation to close shall have been satisfied and the Buyer shall fail to close by August 31, 2007.

(c)

Termination by Mutual Agreement.  This Agreement may be terminated by the mutual agreement of the parties hereto evidenced in writing.

(d)

Specific Performance.  Any termination pursuant to this Section 1.08 shall be without prejudice to the terminating party's rights and remedies under this Agreement by reason of any violation of this Agreement occurring prior to such termination.

1.09

Laurus Loan.  Immediately upon Closing, Seller shall deliver six million five hundred thousand dollars ($6,500,000) of Buyers' stock representing a portion of the Purchase Price to Laurus Family of Funds to secure a two million one hundred thousand dollar ($2,100,000) loan ("Laurus Loan") to Seller.  It is understood among the parties that the shares of Buyer's stock delivered to Laurus will be liquidated starting on the first day of the seven month from the Closing Date to pay off the principal and interest on the Laurus Note.  All shares of Buyers stock delivered at Closing shall be freely tradable on the AIMS subject to the restrictions set forth in the 

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First Escrow Agreement.  The First Escrow Agreement shall contain all of the terms contained in Schedule 1.09A.  Pursuant to the First Escrow Agreement, Laurus has agreed once Laurus has been repaid said two million one hundred thousand dollars ($2,100,000), Laurus will transfer any remaining shares of Buyer's stock to Colonial Stock Transfer (the "Second Escrow Agent"), who has agreed to hold said shares pursuant to the Second Escrow Agreement in the form attached hereto as Schedule 1.09B.

ARTICLE II

SPECIAL COVENANTS

2.01

Activities of Seller.

(a)

From and after the date of this Agreement until the Closing Date and except as contemplated by this Agreement, Buyer and Seller will each:

(i)

Carry on their business in substantially the same manner as it has heretofore;

(ii)

Maintain in full force and effect insurance comparable in amount and in scope of coverage to insure the assets of Seller;

(iii)

Perform in all material respects all of its obligations under material contracts, leases, and instruments relating to or affecting its assets, properties, and business;

(iv)

Fully comply with and perform in all material respects all obligations and duties imposed on it by all federal and state laws and all rules, regulations, and orders imposed by federal or state governmental authorities; and

(v)

Not incur any debt or encumbrances on the Business and Assets.

2.02

Assignment or Sale.  Seller shall not assign, transfer, encumber or sell the whole or any part of the Business without first securing Buyer’s written approval therefore, which may be withheld for any reason, and any assignment, sale, encumbrance or transfer without such approval shall be null and void.

2.03

Expenses and Fees.  Each party shall be solely responsible for its own costs and expenses (including legal expenses, accounting expenses and brokers or finders fees and expenses), and the costs and expenses of its affiliates, in connection with the preparation and negotiation of this Agreement and the consummation of the transactions contemplated by this Agreement.  No party shall have any obligation for paying such expenses or costs of any other party.

2.04

Public Announcements.  The parties agree that no public release, announcement or any other disclosure concerning any of the transactions contemplated hereby shall be made or issued by any party without the prior written consent of Seller and Buyer (which consent shall not be unreasonably withheld or delayed), except to the extent such release, announcement or disclosure may be required by applicable laws, in which case the person required to make the release, announcement or disclosure shall allow Seller or Buyer, as applicable, reasonable time to comment on such release, announcement or disclosure in advance of such issuance or disclosure; provided, however, that no notice is required if the 

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disclosure is determined by the Seller’s or Winning Edge’s legal counsel to be required under federal or state securities laws or exchange regulation applicable to Seller or Winning Edge.

2.05

Due Diligence Investigation.  Each party shall afford to the officers, employees and authorized representatives of the other (including independent public accountants and attorneys) complete access to the offices, properties, books, records, tax returns, financial records (including computer files, retrieval programs and similar documentation), employees and business of such party subject to reasonable prior notice and shall furnish to such party and its authorized representatives such additional information concerning the assets, properties and operations as shall be reasonably requested, including all such information as shall be necessary or appropriate to enable such party or its representatives to verify the accuracy of the representations and warranties contained in this Agreement, to verify that the covenants contained in this Agreement have been complied with, and to determine whether the conditions set forth herein have been satisfied.  Each party shall ensure that all third-party representatives of each, including without limitation accountants and attorneys, fully cooperate and are available to the other party in connection with such investigation, and each party shall bear its own costs and expenses in connection with the same.  Any such investigation shall be conducted in a manner that would not interfere unreasonably with the operations of the other party.

2.06

Further Assurances.  Each of the parties hereto shall, at any time, and from time to time, either before or after the Closing Date, upon the request of the appropriate party, do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all such further acts, assignments, transfers, conveyances and assurances as may be reasonably required to complete the transactions contemplated in this Agreement.  After the Closing Date, each party shall use its good faith efforts to assure that any necessary third party shall execute such documents and do such acts and things as the other party may reasonably require for the purpose of giving each party the full benefit of all the provisions of this Agreement and as may be reasonably required to complete the transactions contemplated in this Agreement.

2.07

Actions of the Parties.

(a)

No Actions Constituting a Breach.  From the date hereof through the Closing Date, neither (i) will Buyer take or knowingly permit to be done any action in the conduct of the business of Buyer, nor (ii) will Seller take or knowingly permit to be done any action, which would be in breach of their respective obligations herein, and each of the parties hereto shall cause the deliveries for which such party is responsible at the Closing to be duly and timely made.

(b)

Notification of Breaches.  From the date hereof through the Closing Date, each party will promptly notify the other parties in writing if any such party becomes aware of any fact or condition that causes or constitutes a breach of any of its representations and warranties as of the date of this Agreement.  During the same period, each party will promptly notify the other parties of the occurrence of any breach of any covenant of such party.  

(c)

Compliance With Conditions.  Each party hereto agrees to cooperate fully with each other party and shall use its good faith efforts to cause the conditions precedent for which such party is responsible to be fulfilled.  Each party hereto further agrees to use its good faith efforts to consummate this Agreement and the transactions contemplated in this Agreement as promptly as possible.

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ARTICLE III

REPRESENTATIONS, COVENANTS, AND WARRANTIES OF SELLER

As an inducement to, and to obtain the reliance of, Buyer, Seller represents, warrants and covenants, and, for purposes of Section 3.19, Mr. Root covenants, as follows:

3.01

Organization.  Seller is, and will be on the Closing Date, a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware and has the corporate power and is and will be duly authorized, qualified, franchised, and licensed under all applicable laws, regulations, ordinances, and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, and there are no other jurisdictions in which it is not so qualified in which the character and location of the assets owned by it or the nature of the material business transacted by it requires qualification, except where failure to do so would not have a material adverse effect on its business, operations, properties, assets or condition of Seller.  The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof will not, violate any provision of Seller’s articles of incorporation or bylaws, or other material agreement to which it is a party or by which it is bound.  Seller has no subsidiaries.  Winning Edge owns all of the issued and outstanding stock of Seller, and Winning Edge has no other subsidiaries.

3.02

Approval of Agreement.  Seller has full power, authority, and legal right and has taken, or will take, all action required by law, its articles of incorporation, bylaws, and otherwise to execute and deliver this Agreement and to consummate the transactions herein contemplated.  The board of directors of Seller has authorized and approved the execution, delivery, and performance of this Agreement and the transactions contemplated hereby; subject to the approval of, if required, the shareholders of Winning Edge, and compliance with state and federal corporate and securities laws.

3.03

Financial Statements.  

(a)

Included in Schedule 3.03 are the audited balance sheet of Winning Edge as of July 31, 2006, and the related reviewed statements of operations, cash flows, and stockholders' equity for the period ending March 31, 2007, including the notes thereto.

(b)

The audited financial statements delivered pursuant to Section 3.03 have been prepared in accordance with generally accepted accounting principles consistently applied throughout the periods involved.  The financial statements of Winning Edge present fairly in all material aspects, of their respective dates, the financial condition of Winning Edge.  Winning Edge did not have, as of the date of any such balance sheets, except as and to the extent reflected or reserved against therein, any liabilities or obligations (absolute or contingent) which should be reflected in any financial statements or the notes thereto prepared in accordance with generally accepted accounting principles, and all assets reflected therein present fairly the assets of Winning Edge in accordance with generally accepted accounting principles.  The statements of revenue and expenses and cash flows present fairly the financial position and result of operations of Winning Edge as of their respective dates and for the respective periods covered thereby.

(c)

Winning Edge has filed or will prior to the Closing Date file all required federal and state income tax returns for 2006 and all prior years for which such returns were due.  Winning 

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Edge has no material liabilities with respect to the payment of any federal, state, county, local, or other taxes (including any deficiencies, interest, or penalties) accrued for or applicable to the period ended on the date of the audited balance sheet of Winning Edge, except to the extent reflected on such balance sheet and adequately provided for therein, which are not yet due and payable.  Proper and accurate amounts of taxes have been withheld by or on behalf of Winning Edge with respect to all material compensation paid to employees of Winning Edge for all periods ending on or before the date hereof, and all deposits required with respect to compensation paid to such employees have been made, in compliance with the provisions of all applicable federal, state, and local tax and other laws.  Winning Edge has not made any election pursuant to the provisions of any applicable tax laws (other than elections that relate solely to methods of accounting, depreciation, or amortization) that would have a material adverse effect on Winning Edge, its financial condition, its business as presently conducted or proposed to be conducted, or any of its properties or material assets.  There are no tax liens upon any of the assets of Winning Edge.  There are no outstanding agreements or waivers extending the statutory period of limitation applicable to any tax return of Winning Edge.

(d)

The books and records, financial and otherwise, of Winning Edge are in all material respects complete and correct and have been maintained in accordance with sound business and bookkeeping practices so as to accurately and fairly reflect, in reasonable detail, the transactions and dispositions of the assets of Winning Edge.  Winning Edge has maintained a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions have been and are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary to permit the preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals, and appropriate action is taken with respect to any differences. 

3.04

Information.  The information concerning Seller set forth in this Agreement and in the schedules delivered by Seller pursuant hereto is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.  Seller shall cause the schedules delivered by Seller pursuant hereto to Buyer hereunder to be updated after the date hereof up to and including the Closing Date.

3.05

Absence of Certain Changes or Events.  Except as set forth in this Agreement since March 31, 2007:

(a)

There has not been (i) any material adverse change in the business, operations, properties, level of inventory, assets, or condition of Seller or (ii) any damage, destruction, or loss to Seller materially and adversely affecting the business, operations, properties, assets, or conditions of Seller.

(b)

Seller has not (i) amended its articles of incorporation or bylaws; (ii) declared or made, or agreed to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to its stockholders or purchased or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii) waived any rights of value which in the aggregate are extraordinary and material considering the business of Seller; (iv) made any material change in its 

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method of accounting; (v) entered into any other material transactions other than those contemplated by this Agreement; (vi) made any material accrual or material arrangement for or payment of bonuses or special compensation of any kind or any severance or termination pay to any present or former officer or employee; or (vii)  made any material increase in any profit-sharing, bonus, deferred compensation, insurance, pension, retirement, or other employee benefit plan, payment, or arrangement made to, for, or with their officers, directors, or employees; 

(c)

Seller has not (i) granted or agreed to grant any options, warrants, or other rights for its Shares, bonds, or other securities calling for the issuance thereof except awards granted under the Seller Incentive Plan; (ii) borrowed or agreed to borrow any funds or incurred, or become subject to, any material obligation or liability (absolute or contingent) except liabilities incurred in the ordinary course of business; (iii) paid any material obligation or liability (absolute or contingent) other than current liabilities reflected in or shown on the most recent Seller balance sheet and current liabilities incurred since that date in the ordinary course of business; (iv) sold or transferred, or agreed to sell or transfer, any of its material assets, properties, or rights, or agreed to cancel, any material debts or claims; (v) made or permitted any amendment or termination of any contract, agreement, or license to which it is a party if such amendment or termination is material, considering the business of Seller; or (vi) issued, delivered, or agreed to issue or deliver any stock, bonds, or other company securities including debentures (whether authorized and unissued or held as treasury shares); and 

(d)

To the best knowledge of Seller, it has not become subject to any law or regulation which materially and adversely affects, or in the future would be reasonably expected to adversely affect, the business, operations, properties, assets, or condition of Seller.  

3.06

Title and Related Matters.  Except as provided herein or disclosed in Schedule 3.06,  Seller has good and marketable title to all of its properties, inventory, interests in properties, and assets, which are reflected in the most recent Seller balance sheet or acquired after that date (except properties, interests in properties, and assets sold or otherwise disposed of since such date in the ordinary course of business), free and clear of all mortgages, liens, pledges, charges, or encumbrances.  To the best knowledge of Seller, the technology licensed to it does not infringe on the copyright, patent, trade secret, know-how, or other proprietary right of any other person or entity and comprises all such rights necessary to permit the operation of the business of Seller as now being conducted or as contemplated.

3.07

Litigation and Proceedings. Except as otherwise disclosed herein or in Schedule 3.07,  there are no material actions, suits, or proceedings pending or, to the knowledge of Seller, threatened by or against Seller or adversely affecting Seller, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind.  Seller does not have any knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule, or regulation of any court, arbitrator, or governmental agency or instrumentality.

3.08

Contracts.  Except as otherwise disclosed in Seller’s schedules:  

(a)

There are no material contracts, agreements, franchises, license agreements, or other commitments to which Seller is a party by which it or any of the properties of Seller are bound;

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(b)

All contracts, agreements, franchises, license agreements, and other commitments to which Seller is a party or by which its properties are bound and which are material to the operations or financial condition of Seller are valid and enforceable by Seller in all material respects;

(c)

Seller is not a party to or bound by, and its properties are not subject to, any material contract, agreement, other commitment or instrument; any charter or other corporate restriction; or any judgment, order, writ, injunction, decree, or award which materially and adversely affects, or in the future may (as far as Seller can now foresee) materially and adversely affect, the business, operations, properties, assets, or condition of Seller; and

(d)

Seller is not a party to any oral or written (i) contract for the employment of any officer, director, or employee which is not terminable on 30 days (or less) notice;  (ii)  profit-sharing, bonus, deferred compensation, stock option, severance pay, pension benefit or retirement plan, agreement, or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract, or indenture relating to the borrowing of money; (iv) guarantee of any obligation, other than one on which Seller is a primary obligor, for the borrowing of money or otherwise, excluding endorsements made for collection and other guarantees of obligations, which, in the aggregate do not exceed $5,000; (v) consulting or other similar contract with an unexpired term of more than one year or providing for payments in excess of $5,000 in the aggregate;  (vi) collective bargaining agreement; (vii) agreement with any present or former officer or director of Seller or any subsidiary; or (viii) contract, agreement, or other commitment involving payments by it of more than $5,000 in the aggregate.

3.09

Material Contract Defaults.  Seller is not in default in any material respect under the terms of any outstanding contract, agreement, lease, or other commitment which is material to the business, operations, properties, assets, or condition of Seller, and there is no event of default or other event which, with notice or lapse of time or both, would constitute a default in any material respect under any such contract, agreement, lease, or other commitment in respect of which Seller has not taken adequate steps to prevent such a default from occurring.

3.10

No Conflict with Other Instruments.  The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any material indenture, mortgage, deed of trust, or other material contract, agreement, or instrument to which Seller is a party or to which any of its properties or operations are subject.

3.11

Governmental Authorizations.  Seller has all licenses, franchises, permits, and other governmental authorizations that are legally required to enable it to conduct its business in all material respects as conducted on the date of this Agreement, and copies of all such licenses, franchises, permits and other governmental authorizations have been provided to Buyer and are listed on Schedule 3.11 attached hereto.  Except for compliance with federal and state securities and corporation laws, as hereinafter provided, no authorization, approval, consent, or order of, or registration, declaration, or filing with, any court or other governmental body is required in connection with the execution and delivery by Seller of this Agreement and the consummation by Seller of the transactions contemplated hereby.

3.12

Compliance with Laws and Regulations.  Seller has complied with all applicable statutes and regulations of any federal, state, or other governmental entity or agency thereof, except to the extent that 

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noncompliance would not materially and adversely affect the business, operations, properties, assets, or condition of Seller or except to the extent that noncompliance would not result in the occurrence of any material liability for Seller. To the best knowledge of Seller, the consummation of this transaction will comply with all applicable statutes and regulations, subject to the preparation and filing of any forms required by state and federal security laws.

3.13  Insurance.  Seller currently has no significant insurable properties and does not carry insurance on such properties.   

3.14  Employee Relations.  Seller has complied in respect of its business in all material respects with all applicable laws, rules, and regulations that relate to prices, wages, hours, harassment, disabled access, and discrimination in employment and collective bargaining and to the operation of its business and is not liable for any arrears of wages or any taxes or penalties for failure to comply with any of the foregoing.  Seller believes that its relationship with its employees is satisfactory.

3.15

Information.  The information concerning Seller set forth in this Agreement is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

3.16

Intellectual Property.  Except as set forth in Schedule 3.16, Seller has no patents, applications for patents, copyrights or license agreements relating to the Business used, owned or granted to Seller, and no assumed names, trade names, domain names, trademark or service mark registrations, applications for trademark or service mark registrations, trademarks or service marks relating to the Business.  Schedule 3.16 sets forth all items of intellectual property used in the conduct of the Business, and there are no other items of intellectual property necessary for the conduct of the Business.  Seller has not granted any outstanding licenses or other rights to know-how or other intellectual property owned by or licensed to Seller and relating to the Business.  Seller is not liable, nor has it made any contract whereby it may become liable, to any person for any royalty or other compensation for the use of any invention, whether or not patented, trademark, trade name or copyright relating to the Business.  No claims have been asserted and no claims are pending by any person to the use of any of the patents, trademarks, trade names or service marks or application therefor owned by Seller, and Seller does not know of any valid basis for any such claim, and to the best of Seller's knowledge, the use of such patents, trademarks, trade names or service marks by the Seller does not infringe on the rights of any person.  None of the rights of Seller in, to or under the trade secrets, inventions, copyrights, trademarks, service marks, trade names, and any applications and registrations therefor, know-how and other intellectual property set forth in Schedule 3.16 shall be adversely affected by consummation of the transactions contemplated by this Agreement, and all of such rights are fully assignable to Buyer, so that immediately after the Closing Buyer shall be entitled to the full benefits thereof.  Seller has not received any notice or claim of infringement of any patent, invention right, trademark, trade name or copyright set forth in Schedule 3.16.

3.17

Environmental Matters.  

(a)

Seller has not, nor have any officers, directors, employees, or affiliated entities acting on behalf of the Seller, generated, transported, handled, disposed of, or arranged for the disposal of any Environmentally Sensitive Material, as hereinafter defined that may result in any expense to Buyer, arising from any violation or alleged violation of any applicable environmental or health and safety statutes, ordinances, regulations, orders (including any mandatory orders or 

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requirements of any court or other tribunal or authority), By-laws, directives, decrees and requirements which now or have at any time prior to the date hereof been in force governing the generation, transportation, handling, or disposal of any Environmentally Sensitive Material.  Seller has listed in Schedule 3.17 and attached copies of any Notices of Violation, Letters of Notification, or other enforcement document or written threat of enforcement issued to the Seller by any agency, either state or Federal charged by any applicable environmental or health and safety statute, ordinance, regulation, order (including any mandatory orders or requirements of any court or other tribunal or authority), By-law, directive, decree or requirement which now or within three years prior to the date hereof been in force concerning any alleged violation of any applicable Environmental Laws.  Except as described in Schedule 3.17, there are no Environmentally Sensitive Materials on, about or under any property on which the Seller has conducted any of its operations or over which it has exercised any dominion or control which will result in any liability for Buyer.

(b)

For the purposes of this Section 3.17, "Environmentally Sensitive Material",

(1)

shall have the same meaning and shall include the same substances as are described in (A) the definition of Hazardous Substances as defined in the Comprehensive Environmental Response Compensation and Liability Act, as amended (CERCLA), 42 U.S.C. § 9601 (14), and set out with particularity in 40 C.F.R. § 302.4, (B) the definition of Hazardous Waste as defined in RCRA 42 U.S.C. § 6901, et seq. and which is further defined in 40 C.F.R. §§ 261.21-261.24 (as to hazardous by characteristic), 40 C.F.R. §§ 261.31-261.33 (as to listed wastes), and (C) the definition of Hazardous Waste or Constituents in App. VIII to 40 C.F.R. Part 261; and

2)

shall also include any other substance, material or waste designated as "hazardous" for purposes of regulating or imposing liability or standards of conduct concerning the generation, transportation, disposal or arranging for the disposal of such substance, material or waste under any applicable environmental or health and safety statute, ordinance, regulation, order (including any mandatory orders or requirements of any court or other tribunal or authority), By-law, directive, decree or requirement which now or have at any time prior to the date hereto been in force.

(c)

Seller is in compliance with all environmental regulatory programs involving, inter alia, (1) air emissions, (2) liquid discharges to streams, ponds, ditches or other surface waters, (3) liquid discharges to ground waters, (4) liquid discharges to publicly-owned treatment works, (5) disposal of solid and/or hazardous wastes, (6) marking, maintenance and/or removal of electrical equipment containing polychlorinated biphenyls, (7) manufacture and/or construction (including renovation) involving asbestos materials, (8) activities in or adjacent to fresh water wetlands, flood hazard areas, coastal zone management areas and/or historic preservation areas, (9) registration, operation, testing and/or removal or replacement of storage tanks for petroleum products and/or hazardous substances, and (10) emergency, planning and community right-to-know laws, including submission of hazardous substance inventory information to Federal, state or local authorities.

(d)

Seller has never disposed of Environmentally Sensitive Materials on any premises on which the Business is conducted, except in compliance with applicable Environmental Laws.

3.18

Seller Schedules.  Seller has delivered to Buyer the following schedules, which are collectively referred to as the "Seller Schedules" and which consist of the following separate schedules 

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dated as of the date of execution of this Agreement, all certified by the chief executive officer of Seller as complete, true, and accurate.

(a)

A schedule including copies of its articles of incorporation and bylaws and all amendments thereto in effect as of the date of this Agreement;

(b)

A schedule containing copies of resolutions adopted by the directors of Seller approving this Agreement and the transactions herein contemplated as referred to in Section 3.02;

(c)

A schedule setting forth the financial statements required pursuant to Section 3.03(a) hereof;

(d)

A schedule setting forth a description of any material adverse change in the business, operations, property, inventory, assets, or condition of Seller since the most recent Seller balance sheet, required to be provided pursuant to Section 3.05 hereof;

(e)

A schedule setting forth any material contracts required to be provided or matters to be disclosed pursuant to Section 3.08 hereof;

(f)

A schedule setting forth any other information, together with any required copies of documents, required to be disclosed in the Seller Schedules by Sections 3.01 through 3.17.

Seller shall cause the Seller Schedules and the instruments delivered to Buyer hereunder to be updated after the date hereof up to and including the Closing Date.  Such updated Seller Schedules, certified in the same manner as the original Seller Schedules, shall be delivered prior to and as a condition precedent to the obligation of Buyer to close.

3.19

Non-Competition.

(a)

Winning Edge and Seller agree that:  (i) for a period of six (6) years after the Closing Date, neither Winning Edge nor Seller shall (A) compete with or be engaged in the same business as, or Participate In (as hereinafter defined in this Section 3.19) any other business or organization which during such six (6) year period engages in competition with Buyer and its subsidiaries and affiliates with respect to the Business in any geographical area in which at that time the Business is engaged in, or (B) Participate In any business or organization which uses a name containing any of the words "Betbrokers", "Winning Edge" or "Global Sports Edge" or a word or words similar or susceptible to confusion with such words or any combination or abbreviation thereof; (ii) for a period of six (6) years after the Closing Date, Winning Edge and Seller shall not and shall cause their respective subsidiaries not to directly or indirectly interfere with, or endeavor to entice away from Buyer or any of its subsidiaries or affiliates, any of their respective suppliers, customers, or employees; and (iii) for a period of six (6) years after the Closing Date, neither Winning Edge nor Seller nor any subsidiary of Winning Edge or Seller shall directly or indirectly employ any person, who, between December 31, 2005 and the Closing Date, was an employee of Seller or Buyer or their subsidiaries or affiliates.  As used in this Section 3.19, "Participate In" shall mean "directly or indirectly, or for, with, or through any other person or entity, own, manage, operate, control, loan money to, or participate in the ownership, management, operation, or control of, or be associated as a director, officer, employee, partner, consultant, agent, independent contractor, or otherwise with, or agree in writing to the use of one's name in".  

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(b)

Non-Compete/Non-Disparagement.

(i)

Based upon Mr. Root's unique and essential value to Buyer and the receipt of the compensation by Seller, in which Mr. Root is an indirect substantial owner, as set forth in this Agreement, Mr. Root agrees to the following covenants and/or restrictions during, and following the termination of, his employment with Buyer, where such termination is by Buyer with Cause, as Cause is defined herein, or by Mr. Root's termination of the employment agreement without "Good Reason" as defined herein.  In such case only, Mr. Root hereby covenants and agrees that during his employment and for a period of 24 (twenty-four) months from the date of the termination of his employment with Buyer, Mr. Root shall not become interested or engaged in, or employed by any competitive sports handicapping business, provided that at the time of Mr. Root's termination by Buyer for cause, Buyer or one of its subsidiaries is still engaged in the sports handicapping business.  For purposes of clarification, if Mr. Root is terminated by Buyer without Cause or by Mr. Root for Good Reason, the Non-Compete in this section shall not apply.  "Competitive business" is defined as a business that is competitive with Buyer's sports handicapping division.

(ii)

At all times while Mr. Root is employed by Buyer and for a period of five (5) years thereafter (regardless of how Mr. Root's employment was terminated), Mr. Root shall not, direct or indirectly, make (or cause to be made) to any person any disparaging, derogatory or other negative or false statement about Buyer or any of Buyer's subsidiaries (including their respective products, services, policies, practices, operations, employees, sales representatives, agents, officers, members, managers, partners or directors).

(iii)

At all times while Mr. Root is employed by Buyer and for a period of five (5) years thereafter (regardless of how Mr. Root's employment was terminated), Buyer shall not, directly or indirectly, make (or cause to be made) to any person any disparaging, derogatory or other negative or false statements about Mr. Root.

(iv)

As used herein, the term "Cause" shall mean:

(A)

a material breach of fiduciary duty or material breach of the terms of this Agreement or any other agreement between Mr. Root and Buyer (including without limitation any agreements regarding confidentiality, inventions, assignment and non-competition), which, in the case of a material breach of the terms of this Agreement or any other agreement, remains uncured for a period of thirty (30) days following receipt of written notice from the Board specifying the nature of such breach;

(B)

the commission by Mr. Root of any act of embezzlement, fraud, larcency or theft on or from Buyer;

(C)

Substantial and continuing neglect or inattention by Mr. Root of the duties of his employment or the willful misconduct or gross negligence of Mr. Root in connection with the performance of such duties which remains uncured for a period of thirty (30) calendar days following receipt of written notice from the Board specifying the nature of such breach; or

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(D)

the commission by Mr. Root of any crime involving a felony.

(v)

As used herein, the term "Good Reason" shall mean:

(A)

The breach by Buyer of any material provision of this Agreement or any stock option or option agreement to which Mr. Root is a party; or

(B)

A requirement by Buyer that Mr. Root perform any act or refrain from performing any act that would be in violation of any applicable law; or

(C)

The diminution of Mr. Root's position with, or compensation paid by, Buyer or the requirement that Mr. Root perform his services outside of Las Vegas, Nevada.

(vi)

Notwithstanding the foregoing, it shall be a condition precedent to Buyer's right to terminate Mr. Root's employment for Cause and Mr. Root's right to terminate for Good Reason that (i) the party seeking termination shall first have given the other party written notice stating with specificity the reason for the termination ("breach") and (ii) if such breach is susceptible of cure or remedy, a period of thirty (30) calendar days from and after the giving of such notice shall have elapsed without the breaching party having effectively cured or remedied such breach during such 30-day period, unless such breach cannot be cured or remedied within thirty (30) days, in which case the period for remedy or cure shall be extended for a reasonable time (not to exceed an additional thirty (30) days) provided the breaching party has made and continues to make a diligent effort to effect such remedy or cure. 

(c)

Seller and Winning Edge and Mr. Root agree that the provisions of this Section 3.19 are necessary and reasonable to protect Buyer and its subsidiaries and affiliates in the conduct of their respective businesses.  If any restriction contained in this Section 3.19 shall be deemed to be invalid, illegal, or unenforceable by reason of the extent, duration, or geographical scope thereof, or otherwise, then the court making such determination shall have the right to reduce such extent, duration, geographical scope, or other provisions hereof, and in its reduced form such restriction shall then be enforceable in the manner contemplated hereby.

3.20

Indemnification.

(a)

Seller and Winning Edge shall be responsible for, and hereby jointly and severally agree to defend, indemnify Buyer and hold it and its agents, servants, employees, successors and assigns harmless, with respect to demands for indemnification asserted by Buyer, as provided by this Section 3.20, within the hereinafter defined "Indemnity Assertion Period" (except for demands based on breaches of Sections 3.03(c) and 3.17and demands for indemnity pursuant to Sections 1.07 and 3.20(a)(5), which demands shall be asserted within the applicable statute of limitations period), from, against and in respect of: 

(1)

all liabilities, obligations, losses, penalties, damages, claims against and contracts of Seller of every kind and nature whatsoever, at any time existing or asserted, whether or not accrued, whether fixed, contingent or otherwise, whether known or unknown, and whether or not recorded on the books and records of Seller, arising out of or 

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by reason of this or any other transaction or event occurring prior or subsequent to the Closing, which are not assumed by Buyer under Section 1.07(b); and

(2)

all losses, liabilities, obligations, claims, penalties, damages and deficiencies resulting from any failure or breach of any representation or warranty, or any breach or nonfulfillment of any covenant or agreement, of Seller or Winning Edge made in this Agreement; and 

(3)

all losses, damages, liabilities, obligations, claims, penalties, and deficiencies resulting from the parties' non-compliance with any applicable laws of the State of Nevada pertaining to "bulk transfers", including Article 6 of the Uniform Commercial Code as enacted in said State; and

(4)

any and all taxes (including penalties and interest) imposed on Buyer in connection with the Business in excess of the accruals and reserves for taxes reflected on Seller’s financial statements attached as Schedule 3.03 for any taxable year or period that ends on or before the date of Closing and, with respect to any taxable year or period beginning before and ending after the date of Closing, the portion of such taxable year or period ending on the date of Closing; and

(5)

all actions, suits, proceedings, claims, demands, assessments, judgments, fines, amounts paid in settlement, costs and expenses (including reasonable attorneys' fees and expenses) incident to any of the foregoing.

As used herein, the "Indemnity Assertion Period" shall commence on the Closing Date and end on the date the escrow agent referred to in Section 1.02 hereof has been repaid in full for the loan made by said escrow agent to Winning Edge on the Closing Date in the amount of Two Million One Hundred Thousand United States Dollars (U.S. $2,100,000).

(b)

Notwithstanding any other provision hereof to the contrary, no demand for indemnification shall be asserted by Buyer unless the aggregate amount of all such demands exceeds $10,000; provided, however, that any amounts payable by Seller and Winning Edge shall be calculated from the first dollar claimed and shall not be reduced by said $10,000; and provided further that in no event shall the aggregate indemnification obligation of Seller and Winning Edge exceed the Purchase Price. 

(c)

If a demand for indemnification arises out of a claim made against Buyer by a person not a party to this Agreement or affiliated with a party to this Agreement (a "Third Party Claim"), Buyer shall give notice thereof to Seller and Winning Edge within 15 days after Buyer is made aware of the Third Party Claim, stating in reasonable detail the nature of the Third Party Claim and the specific representations, warranties or covenants which Buyer contends Seller or Winning Edge has breached.  Such notice shall also indicate whether Buyer intends to defend against the Third Party Claim.  If Buyer shall defend against the Third Party Claim, Seller and Winning Edge shall cooperate in all reasonable respects with Buyer in such defense, shall make available to Buyer all records and other materials reasonably required by Buyer in such defense, and shall have the right to participate in such defense.  If Buyer does not intend to defend against the Third Party Claim, then Seller and Winning Edge may assume defense of the Third Party Claim, in which event Buyer shall cooperate in all reasonable respects with them in such defense, shall make available to them all 

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records and other materials reasonably required by them in such defense, and shall have the right to participate in such defense, but Seller and Winning Edge shall at all times control such defense.  So long as a Third Party Claim is pending and is not resolved, Buyer shall hold in abeyance its demand for indemnification.  If Seller and Winning Edge reach a settlement with the Third Party Claimant which results in any liability to Buyer, or if a judgment is rendered against Buyer which judgment is not properly appealed or appealable, then Buyer shall be entitled to indemnification in an amount sufficient to discharge the Third Party Claim.  Each party shall be responsible for its own costs and expenses, including legal fees, incurred in defending a Third Party Claim except that Seller and Winning Edge shall pay Buyer's actual costs and expenses incurred in connection with defending any claim which is determined adversely to them and which shall be found to have constituted a breach of their representations, warranties and covenants hereunder or which is settled with Winning Edge's prior written consent.

(d)

If Buyer asserts a demand for indemnification hereunder, but such demand is not based upon a Third Party Claim, Buyer shall notify Seller and Winning Edge thereof within 30 days after the date on which Buyer has reason to believe that an indemnifiable event has occurred.  Such notice shall state in reasonable detail the nature of Buyer's claim and the specific representations, warranties and covenants which Buyer contends Seller or Winning Edge has breached.  Seller and Winning Edge shall have 30 days after the date such notice is deemed given pursuant to Section 8.04 hereof to accept or reject Buyer's demand for indemnification.  If no acceptance is received by Buyer within such 30-day period, Seller and Winning Edge shall be deemed to have rejected the demand, in which event the parties shall immediately submit the controversy to arbitration in accordance with the provisions of Section 3.20(e).  If the arbitrator(s) shall render an award in the arbitration proceeding in favor of Buyer, Buyer shall be entitled to indemnification to the extent provided in such award.  If the arbitrator(s) shall render an award in favor of Seller or Winning Edge, they shall have no further liability on Buyer's claim.  So long as Buyer's claim is pending and is not resolved, Buyer shall hold in abeyance its demand for indemnification.

(e)

If there is any disagreement between Buyer, on the one hand, and Seller or Winning Edge, on the other hand, concerning the validity of any demand for indemnification asserted under Section 3.20, then such disagreement may, as provided by Section 3.20(d) or otherwise on demand of either party, be referred to arbitration in the City of London, England.  Buyer and Seller shall attempt to agree on the appointment of a single arbitrator.  If they are unable to agree, a panel of three arbitrators shall be appointed: one arbitrator shall be appointed by Buyer, one shall be appointed by Seller, and one shall be appointed by the two so appointed.  The determination in writing of such arbitrator(s), signed by at least two of them (if there be more than one), shall be final and binding on the parties, and judgment upon the award so rendered may be entered in any court having jurisdiction thereof.  Such determination shall be made as soon as practicable after the reference of the claim to arbitration.  The arbitrators shall be governed by the LCIA Rules then in effect, and shall have full power to make such regulations and to give such orders and directions in all respects as they shall deem expedient, as well as in respect to the claims and differences referred to them, and also with respect to the mode and times of executing and performing any of the acts or things which may be awarded or directed to be done.  Each party shall bear the fees and expenses of the arbitrator appointed by it, and one-half of the fees and expenses of any arbitrator jointly appointed.

3.21

Indemnity Escrow and Right of Set-Off.  Buyer has deposited with the First Escrow Agent, in escrow, a portion of the Purchase Price, namely, Buyer's stock having a value 

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equal to Six Million Three Hundred Thousand United States Dollars (U.S. $6,300,000) to secure Seller's and Winning Edge's indemnification obligations under Section 3.20 of this Agreement.  Seller agrees that any shares being held in escrow pursuant to this Section 3.21 may be used by Buyer, at its option, to satisfy any demands for indemnification asserted against Seller or Winning Edge under Section 3.20, provided that Buyer shall not demand the withdrawal of any shares from escrow until it has been established that Buyer is entitled to indemnification hereunder.   The escrow shall be maintained for the Indemnity Assertion Period, and the balance of any shares remaining in escrow at the conclusion of the Indemnity Assertion Period shall be remitted immediately to the Second Escrow Agent. The terms of the First Escrow Agreement and Second Escrow Agreement shall govern the handling of the shares held in escrow pursuant to this Section 3.21.  The Purchase Price and any and all set-offs against such purchase price under this Section 3.21 shall be subject to the prior right of the First Escrow Agent to sell the shares of Buyer representing the purchase price to pay for all interest and principal on the two million one hundred thousand dollar ($2,100,000) loan set forth in Section 1.09 hereof.  None of the Purchase Price shall be used to pay any set-offs or indemnification claims of Buyer until all principal and interest under the Laurus Note are paid in full.

3.22

Change of Winning Edge and Seller's Names.  Within 10 days following the Closing Date, Seller and Winning Edge shall change their respective names to names which do not include the term "Winning Edge" or "Global Sports Edge" or any confusingly similar term and file Certificate of Amendments with the Delaware Secretary of State to such effect.  The Seller shall provide Buyer with a certified copy of the filed Certificates of Amendment of Seller and Winning Edge evidencing such change no later than 7 days after the filing thereof.  Within 10 days following the Closing Date, Seller shall refrain from and shall cause Winning Edge to refrain from and cease all use of the terms "Winning Edge" and "Global Sports Edge" in stationary, business cards, website, e-mail addresses and product labels.

3.23

Reimbursement for Chargebacks.  Seller will reimburse Buyer after the Closing from time to time within ten (10) days after receipt of statements therefor, for chargebacks relating to sales made by Seller prior to the Closing.

ARTICLE IV

REPRESENTATIONS, COVENANTS, AND WARRANTIES OF BUYER

As an inducement to, and to obtain the reliance of, Seller, Buyer represents, warrants and covenants as follows:

4.01

Organization.  Buyer is, and will be on the Closing Date, a corporation duly organized, validly existing, and in good standing under the laws of the United Kingdom and has the corporate power and is and will be duly authorized, qualified, franchised, and licensed under all applicable laws, regulations, ordinances, and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, and there are no other jurisdictions in which it is not so qualified in which the character and location of the assets owned by it or the nature of the material business transacted by it requires qualification, except where failure to do so would not have a material adverse effect on its business, operations, properties, assets or condition of Buyer.  The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof will not, violate any provision of Buyer’s articles of incorporation, or other material agreement to which it is a party or by which it is bound.

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4.02

Approval of Agreement.  Buyer has full power, authority, and legal right and has taken, or will take, all action required by law, its articles of incorporation, and otherwise to execute and deliver this Agreement and to consummate the transactions herein contemplated.  The board of directors of Buyer has authorized and approved the execution, delivery, and performance of this Agreement and the transactions contemplated hereby; subject to the approval of the Buyer's shareholder and compliance with corporate and securities laws.

4.03

Capitalization.  The authorized capitalization of Buyer consists of Five Hundred Million ($500,000,000) ordinary shares of 0.25 pence each, of which Two Hundred Eleven Million, Eighty Six Thousand Two Hundred Sixty-Seven (211,086,267) are issued and outstanding.  All issued and outstanding shares of Buyer are legally issued, fully paid, and nonassessable and not issued in violation of the preemptive or other right of any person.  There are no distributions, return of capital or other amounts due or payable with respect to any of the shares of Buyer.

4.04

Financial Statements.

(a)

Included in Schedule 4.04 is the audited balance sheet of Betbroker Limited, the operating subsidiary of Buyer ("BLTD") as of December 31, 2006, including the notes thereto.  

(b)

The audited financial statements delivered pursuant to Section 4.04(a) have been prepared in accordance with generally accepted accounting principles consistently applied throughout the periods involved.  The financial statements of BLTD present fairly in all material aspects, as of their respective dates, the financial condition of BLTD.  BLTD did not have, as of the date of any such balance sheets, except as and to the extent reflected or reserved against therein, any liabilities or obligations (absolute or contingent) which should be reflected in any financial statements or the notes thereto prepared in accordance with generally accepted accounting principles, and all assets reflected therein present fairly the assets of BLTD, in accordance with generally accepted accounting principles.  The statements of revenue and expenses and cash flows present fairly the financial position and result of operations of BLTD as of their respective dates and for the respective periods covered thereby.

(c)

BLTD has filed or will prior to the Closing Date file all required income tax returns.  BLTD has no material liabilities with respect to the payment of any national, local, or other taxes (including any deficiencies, interest, or penalties) accrued for or applicable to the period ended on the date of the audited balance sheet of BLTD, except to the extent reflected on such balance sheet and adequately provided for therein, which are not yet due and payable.  Proper and accurate amounts of taxes have been withheld by or on behalf of BLTD with respect to all material compensation paid to employees of BLTD for all periods ending on or before the date hereof.  BLTD has not made any election pursuant to the provisions of any applicable tax laws (other than elections that relate solely to methods of accounting, depreciation, or amortization) that would have a material adverse affect on BLTD, its financial condition, its business as presently conducted or proposed to be conducted, or any of its properties or material assets.  There are no tax liens upon any of the assets of BLTD.  There are no outstanding agreements or waivers extending the statutory period of limitation applicable to any tax return of BLTD.

(d)

The books and records, financial and otherwise, of BLTD are in all material respects complete and correct and have been maintained in accordance with sound business and bookkeeping practices so as to accurately and fairly reflect, in reasonable detail, the transactions 

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and dispositions of the assets of BLTD.  BLTD has maintained a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions have been and are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary to permit the preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals, and appropriate action is taken with respect to any differences.

4.05

Outstanding Warrants and Options.  Except for options for the directors and staff of the Buyer (the "Buyer Incentive Plan"), and for awards disclosed herein or in Buyer’s  schedules, Buyer has no outstanding options, warrants, calls or awards of any nature relating to the authorized and unissued Buyer shares.

  

4.06

Information.  The information concerning Buyer set forth in this Agreement and in the schedules delivered by Buyer pursuant hereto is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.  Buyer shall cause the schedules delivered by Buyer pursuant hereto to Seller hereunder to be updated after the date hereof up to and including the Closing Date.

4.07

Absence of Certain Changes or Events.  Except as set forth in this Agreement since the date of the last audited financial statement delivered herein by Buyer, to the best of Buyer's directors' knowledge:

(a)

There has not been (i) any material adverse change in the business, operations, properties, level of inventory, assets, or condition of Buyer or (ii) any damage, destruction, or loss to Buyer materially and adversely affecting the business, operations, properties, assets, or conditions of Buyer.

(b)

Buyer has not (i) amended its articles of incorporation; (ii) declared or made, or agreed to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to its stockholders or purchased or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii) waived any rights of value which in the aggregate are extraordinary and material considering the business of Buyer; (iv) made any material change in its method of accounting;

(c)

Buyer has not granted or agreed to grant any options, warrants, or other rights for its Shares, bonds, or other securities calling for the issuance thereof except awards granted under the Buyer Incentive Plan; and 

(d)

To the best knowledge of Buyer, it has not become subject to any law or regulation which materially and adversely affects, or in the future would be reasonably expected to adversely affect, the business, operations, properties, assets, or condition of Buyer.  

4.08

Title and Related Matters.  Except as provided herein or in Schedule 4.08 or disclosed in the Buyer balance sheet and the notes thereto, to the best of Buyer's directors' knowledge Buyer has good and marketable title to all of its properties, inventory, interests in properties, and assets, which are reflected

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 in the most recent Buyer balance sheet or acquired after that date (except properties, interests in properties, and assets sold or otherwise disposed of since such date in the ordinary course of business), free and clear of all mortgages, liens, pledges, charges, or encumbrances, except (i) statutory liens or claims not yet delinquent; and (ii) such imperfections of title and easements as do not, and will not, materially detract from, or interfere with, the present or proposed use of the properties subject thereto or affected thereby or otherwise materially impair present business operations on such properties. To the best knowledge of Buyer's directors' knowledge, the technology licensed to it does not infringe on the copyright, patent, trade secret, know-how, or other proprietary right of any other person or entity and comprises all such rights necessary to permit the operation of the business of Buyer as now being conducted or as contemplated.

4.09

Litigation and Proceedings. Except as otherwise disclosed herein or in Schedule 4.09,  there are no material actions, suits, or proceedings pending or, to the knowledge of Buyer, threatened by or against Buyer or adversely affecting Buyer, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind.  Buyer does not have any knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule, or regulation of any court, arbitrator, or governmental agency or instrumentality.

4.10

Contracts.  Except as otherwise disclosed herein or in Buyer’s Schedules, to the best of Buyer's directors' knowledge:  

(a)

All contracts, agreements, franchises, license agreements, and other commitments to which Buyer is a party or by which its properties are bound and which are material to the operations or financial condition of Buyer are valid and enforceable by Buyer in all material respects;

(b)

Buyer is not a party to or bound by, and its properties are not subject to, any material contract, agreement, other commitment or instrument; any charter or other corporate restriction; or any judgment, order, writ, injunction, decree, or award which materially and adversely affects, or in the future may (as far as Buyer can now foresee) materially and adversely affect, the business, operations, properties, assets, or condition of Buyer.

4.11

Material Contract Defaults.  Buyer is not in default in any material respect under the terms of any outstanding contract, agreement, lease, or other commitment which is material to the business, operations, properties, assets, or condition of Buyer, and there is no event of default or other event which, with notice or lapse of time or both, would constitute a default in any material respect under any such contract, agreement, lease, or other commitment in respect of which Buyer has not taken adequate steps to prevent such a default from occurring.

4.12

No Conflict With Other Instruments.  The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any material indenture, mortgage, deed of trust, or other material contract, agreement, or instrument to which Buyer is a party or to which any of its properties or operations are subject.

4.13

Governmental Authorizations.  Buyer has all licenses, franchises, permits, and other governmental authorizations that are legally required to enable it to conduct its business in all material respects as conducted on the date of this Agreement.  Except for compliance with applicable securities and corporation laws, as hereinafter provided, no authorization, approval, consent, or order of, or registration, 

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declaration, or filing with, any court or other governmental body is required in connection with the execution and delivery by Buyer of this Agreement and the consummation by Buyer of the transactions contemplated hereby.

4.14

Compliance With Laws and Regulations.  Buyer has complied with all applicable statutes and regulations of any applicable governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets, or condition of Buyer or except to the extent that noncompliance would not result in the occurrence of any material liability for Buyer. To the best knowledge of Buyer, the consummation of this transaction will comply with all applicable statutes and regulations, subject to the preparation and filing of any forms required by security laws.

4.15

Insurance.  Buyer carries sufficient insurance to cover the loss of any of its asset and business loss insurance to cover the loss of business.

4.16  

Buyer Schedules.  Buyer has delivered to Seller the following schedules, which are collectively referred to as the "Buyer Schedules" and which consist of the following separate schedules dated as of the date of execution of this Agreement, all certified by the chief executive officer of Buyer as complete, true, and accurate:

(a)

A schedule including copies of its articles of incorporation and all amendments thereto in effect as of the date of this Agreement;

(b)

A schedule containing copies of resolutions adopted by the directors of Buyer approving this Agreement and the transactions herein contemplated as referred to in Section 4.02;

(c)

A schedule setting forth the financial statements required pursuant to Section 4.04 (a) hereof; 

(d)

A schedule setting forth a description of any material adverse change in the business, operations, property, inventory, assets, or condition of Buyer since the most recent Buyer balance sheet, required to be provided pursuant to Section 4.07 hereof; and

(e)

A schedule setting forth any other information, together with any required copies of documents, required to be disclosed in the Buyer Schedules by Sections 4.01 through 4.15.

Buyer shall cause the Buyer Schedules and the instruments delivered to Seller hereunder to be updated after the date hereof up to and including the Closing Date.  Such updated Buyer Schedules, certified in the same manner as the original Buyer Schedules, shall be delivered prior to and as a condition precedent to the obligation of Seller to close.

ARTICLE V

CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER

Buyer shall be bound by the terms and conditions of this Agreement provided the following conditions are complied with and satisfied by Seller at or before the Closing Date:

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5.01

Shareholder Approval.  Seller shall call and hold a meeting of its shareholder and, if required by Delaware law, Winning Edge’s shareholders, to approve the transactions contemplated by this Agreement, and such shareholder and Winning Edge's shareholders, shall have so approved.  If required, Buyer's shareholders shall have approved this Agreement and the transactions contemplated hereby.

5.02

Accuracy of Representations.  The representations and warranties made by Seller in this Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations and warranties were made at and as of the Closing Date (except for changes therein permitted by this Agreement), and Seller shall have performed or complied with all covenants and conditions required by this Agreement to be performed or complied with by Seller prior to or at the Closing.  Buyer shall be furnished with certificates, signed by duly authorized officers of Seller and dated the Closing Date, to the foregoing effect.

5.03

Officer's Certificates.  Buyer shall have been furnished with certificates dated the Closing Date and signed by the duly authorized chief executive officer of Seller to the effect that to such officer’s best knowledge no litigation, proceeding, investigation, or inquiry is pending or, to the best knowledge of Seller threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement.  Furthermore, based on certificates of good standing, representations of government agencies, and Seller's own documents and information, the certificate shall represent, to the best knowledge of the officer, that:

(a)

This Agreement has been duly approved by Seller's board of directors and shareholders and has been duly executed and delivered in the name and on behalf of Seller by its duly authorized officers pursuant to, and in compliance with, authority granted by the board of directors of Seller pursuant to a unanimous consent;

(b)

There have been no material adverse changes in Seller up to and including the date of the certificate;

(c)

All conditions required by this Agreement have been met, satisfied, or performed by Seller; 

(d)

All authorizations, consents, approvals, registrations, and/or filings with any governmental body, agency, or court required in connection with the execution and delivery of the documents by Seller have been obtained and are in full force and effect or, if not required to have been obtained, will be in full force and effect by such time as may be required; and

(e)

There is no material action, suit, proceeding, inquiry, or investigation at law or in equity by any public board or body pending or threatened against Seller, wherein an unfavorable decision, ruling, or finding could have an adverse effect on the financial condition of Seller, the operation of Seller, or the acquisition and reorganization contemplated herein, or any agreement or instrument by which Seller is bound or in any way contests the existence of Seller.

5.04

No Material Adverse Change.  Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business, or operations of Seller, nor shall any event have occurred which, with the lapse of time or the giving of notice, may cause or create any material adverse change in the financial condition, business, or operations of Seller.

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5.05

Good Standing.  Buyer shall have received a certificate of good standing from the secretary of state of Delaware, dated as of the date within five days prior to the Closing Date, certifying that Seller is in good standing as a corporation in the State of Delaware.

5.06

Other Items.  Buyer shall have received such further documents, certificates, or instruments relating to the transactions contemplated hereby as Buyer may reasonably request.

5.07

Updates.  Buyer shall, in Buyer's sole discretion, be satisfied with a) the contents of all updates to Seller's schedules delivered in accordance with Section 3.04 hereof and b) the form and substance of Winning Edge's financial statements delivered in accordance with Section 3.03 hereof, and the First Escrow Agreement and Second Escrow Agreement.

5.08

Employment Agreement.  Wayne Allyn Root shall have executed and delivered the Buyer an Employment Agreement providing for his employment by Buyer or Buyer's subsidiary which will operate the Business, in form and substance, satisfactory to Buyer, contingent only upon the completion of the closing under this Asset Purchase Agreement.

ARTICLE VI

CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER

The obligations of Seller under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:

6.01.

Shareholder Approval.  This Agreement and the transactions contemplated hereby shall have been approved by the shareholders, if required, of Buyer and Seller in the manner required by the applicable laws.

6.02

Accuracy of Representations.  The representations and warranties made by Buyer in this Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations and warranties were made at and as of the Closing Date (except for changes therein permitted by this Agreement), and Buyer shall have performed or complied with all covenants and conditions required by this Agreement to be performed or complied with by Buyer prior to or at the Closing.  Seller shall be furnished with a certificate, signed by a duly authorized officer of Buyer and dated the Closing Date, to the foregoing effect.

6.03

Officer's Certificates.  Seller shall have been furnished with certificates dated the Closing Date and signed by the duly authorized chief executive officer of Buyer to the effect that no litigation, proceeding, investigation, or inquiry is pending or, to the best knowledge of Buyer, threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement.  Furthermore, based on certificates of good standing, representations of government agencies, and Buyer's own documents, the certificate shall represent, to the best knowledge of the officer, that:

(a)

This agreement has been duly approved by Buyer's board of directors and has been duly executed and delivered in the name and on behalf of Buyer by its duly authorized officers pursuant to, and in compliance with, authority granted by the board of directors of Buyer;

(b)

Except as provided or permitted herein, there have been no material adverse changes in Buyer up to and including the date of the certificate;

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(c)

All authorizations, consents, approvals, registrations, and/or filing with any governmental body, agency, or court required in connection with the execution and delivery of the documents by Buyer have been obtained and are in full force and effect or, if not required to have been obtained will be in full force and effect by such time as may be required; and

(d)

Except as otherwise disclosed, there is no material action, suit, proceeding, inquiry, or investigation at law or in equity by any public board or body pending or threatened against Buyer, wherein an unfavorable decision, ruling, or finding would have a material adverse affect on the financial condition of Buyer, the operation of Buyer, or the acquisition and reorganization contemplated herein, or any material agreement or instrument by which Buyer is bound or would in any way contest the existence of Buyer.

6.04

No Material Adverse Change.  Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business or operations of Buyer, nor shall any event have occurred which, with the lapse of time or the giving of notice, may cause of create any material adverse change in the financial condition, business, or operations of Buyer.

6.05

Other Items.  Seller shall have received such further documents, certificates, or instruments relating to the transactions contemplated hereby as Seller may reasonably request.

6.06

Updates.  Seller shall, in Seller's sole discretion, be satisfied with the contents of all updates to Buyer's schedules delivered in accordance with Section 4.06 hereof and with the form and substance of the First Escrow Agreement and Second Escrow Agreement.

ARTICLE VII

MUTUAL COVENANTS

7.01

Activities of Seller and Buyer

(a)

From and after the date of this Agreement until the Closing Date and except as set forth in the respective schedules to be delivered by Seller and Buyer pursuant hereto or as permitted or contemplated by this Agreement, Seller and Buyer will each:

(i)

Carry on its business in substantially the same manner as it has heretofore;

(ii)

Maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained by it;

(iii)

Perform in all material respects all of its obligations under material contracts, leases, and instruments relating to or affecting its assets, properties, and business;

(iv)

Use its best efforts to maintain and preserve its business organization intact, to retain its key employees, and to maintain its relationships with its material suppliers and customers;

(v)

Duly and timely file for all taxable periods ending on or prior to the Closing Date all tax returns required to be filed by or on behalf of such entity or for which such entity may be held responsible and shall pay, or cause to pay, all taxes required to be shown as due and payable on 

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such returns, as well as all installments of tax due and payable during the period commencing on the date of this Agreement and ending on the Closing Date.; and

(vi)

Fully comply with and perform in all material respects all obligations and duties imposed on it by all laws and all rules, regulations, and orders imposed by governmental authorities.

(b)

From and after the date of this Agreement and except as provided herein until the Closing Date, Seller will not:

(i)

Make any change in its articles of incorporation or bylaws or effect any recapitalization;

(ii)

Enter into or amend any material contract, agreement, or other instrument of any of the types described in such party's schedules, except that a party may enter into or amend any contract, agreement, or other instrument in the ordinary course of business; and

(iii)

Enter into any agreement for the sale of Seller securities without the prior approval of the other party.

7.02

Access to Properties and Records.  Until the Closing Date, Buyer and Seller will afford to the other party's officers and authorized representatives full access to the properties, books, and records of the other party in order that each party may have full opportunity to make such reasonable investigation as it shall desire to make of the affairs of Buyer or Seller and will furnish the other party with such additional financial and other information as to the business and properties of Buyer or Seller as each party shall from time to time reasonably request.

7.03

Indemnification by Buyer.  Buyer will indemnify and hold harmless Seller and its directors and officers, and each person, if any, who controls Seller within the meaning of the Securities Act, from and against any and all losses, claims, damages, expenses, liabilities, or actions to which any of them may become subject under applicable law (including the Securities Act and the Securities Exchange Act) and will reimburse them for any legal or other expenses reasonably incurred by them in connection with investigating or defending any claims or actions, whether or not resulting in liability, insofar as such losses, claims, damages, expenses, liabilities, or actions arise out of or are based upon any untrue statement or alleged untrue statement of material fact contained in any application or statement filed with a governmental body or arising out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein, or necessary in order to make the statements therein not misleading, but only insofar as any such statement or omission was made in reliance upon and in conformity with information furnished in writing by Buyer expressly for use therein.  The indemnity agreement contained in this Section 7.03 shall remain operative and in full force and effect, regardless of any investigation made by or on behalf of Seller and shall survive the consummation of the transactions contemplated by this Agreement for a period of three months.

7.04.

Indemnification by Seller.  Seller will indemnify and hold harmless Buyer, and its directors and officers, and each person, if any, who controls Buyer within the meaning of the Securities Act, from and against any and all losses, claims, damages, expenses, liabilities, or actions to which any of them may become subject under applicable law (including the Securities Act and the Securities Exchange Act) and will reimburse them for any legal or other expenses reasonably incurred by them in connection with investigating or defending any claims or actions, whether or not resulting in liability, insofar as such losses, 

- 26-

claims, damages, expenses, liabilities, or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any application or statement filed with a governmental body or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein, or necessary in order to make the statements therein not misleading, but only insofar as any such statement or omission was made in reliance upon and in conformity with information furnished in writing by Seller expressly for use therein.  The indemnity agreement contained in this Section 7.04 shall remain operative and in full force and effect, regardless of any investigation made by or on behalf of Buyer and shall survive the consummation of the transactions contemplated by this Agreement for a period of three months.

7.05

The Acquisition of Buyer’s Stock.  Seller and Buyer understand and agree that the consummation of this Agreement including the issuance of the Buyer’s stock to Seller in exchange for the Business and Assets as contemplated hereby, constitutes the offer and sale of securities under the Securities Act and applicable state statutes.  Seller and Buyer agree that such transactions shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such statutes which depend, among other items, on the circumstances under which such securities are acquired.  

(a)

In connection with the transaction contemplated by this Agreement, Buyer and Seller shall each file, with the assistance of the other and their respective legal counsel, such notices, applications, reports, or other instruments as may be deemed by them to be necessary or appropriate in an effort to document reliance on such exemptions, all to the extent and in the manner as may be deemed by such parties to be appropriate.

(b)

In order to more fully document reliance on the exemptions as provided herein, Buyer and Seller shall execute and deliver to the other, at or prior to the Closing, such further letters of representation, acknowledgment, suitability, or the like as Seller or Buyer and their respective counsel may reasonably request in connection with reliance on exemptions from registration under such securities laws.

7.06

Securities Filings.  The parties shall be responsible for compliance with all applicable securities laws.

7.07

Future Sale of Securities.  Subject to the First Escrow Agreement, Buyer will use reasonable commercial efforts, at Seller's sole  expense, to satisfy the requirements necessary for Seller to sell the shares of Buyers stock being delivered as consideration hereunder.  In addition, any sale of Buyer's stock by Seller must be effected at Seller's sole expense through an exemption from registration under the United States Securities laws or pursuant to an effective registration at Seller's sole expense satisfactory to each of the parties.

ARTICLE VIII

MISCELLANEOUS

8.01

Brokers.  Buyer and Seller agree that there were no finders or brokers involved in bringing the parties together or who were instrumental in the negotiation, execution, or consummation of this Agreement.  Further, Buyer and Seller each agree to indemnify the other against any claim by any third person for any commission, brokerage, or finder's fee or other payment with respect to this Agreement or the transactions contemplated hereby based on any alleged agreement or understanding between such party and such third person, whether express or implied, from the actions of such party.

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The covenants set forth in this section shall survive the Closing Date and the consummation of the transactions herein contemplated.

8.02

  No Representation Regarding Tax Treatment.  No representation or warranty is being made by any party to any other regarding the treatment of this transaction for federal or state income taxation.  Each party has relied exclusively on its own legal, accounting, and other tax adviser regarding the treatment of this transaction for federal and state income taxes and on no representation, warranty, or assurance from any other party or such other party's legal, accounting, or other adviser.

8.03

Governing Law.  This Agreement shall be governed by, enforced and construed under and in accordance with the laws of the United States and the State of New York and venue shall be in London, England.

8.04

Notices.  Any notices or other communications required or permitted hereunder shall be sufficiently given if personally delivered, if sent by facsimile or telecopy transmission or other electronic communication confirmed by registered or certified mail, postage prepaid, or if sent by prepaid overnight 

courier addressed as follows:

If to Buyer, to:

Wayne Lochner 

 

Chairman

Betbrokers PLC

56 Marsh Wall

London E14 9TP

Telephone 44-207 127 9815

Fax 44-207 127 9818

Copy to:

Oliver Edwards, Esq.

Holland & Knight LLP

195 Broadway 

New York, NY  10007

Telephone: 212-513-3533 

Fax: 212-385-9010

If to Winning Edge or Seller or Mr. Root:

Global Sports Edge, Inc.

5052 S. Jones Boulevard

Las Vegas, NV 89118

Attention:  Wayne Allyn Root, CEO

Facsimile:  (702) 967-6002

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Copy to:

Victor D. Schwarz, P.C.

4764 South 900 East, Suite 3(A)

Salt Lake City, Utah 84117

Facsimile:  (801) 685-0949

or such other addresses as shall be furnished in writing by any party in the manner for giving notices, hereunder, and any such notice or communication shall be deemed to have been given as of the date so delivered or sent by facsimile or telecopy transmission or other electronic communication, or one day after the date so sent by overnight courier.

8.05

Attorney's Fees.  In the event that any party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the breaching party or parties shall reimburse the nonbreaching party or parties for all costs, including reasonable attorneys' fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

8.06

Entire Agreement.  This Agreement and attachments hereto represents the entire agreement between the parties relating to the subject matter hereof.  All previous agreements between the parties, whether written or oral, have been merged into this Agreement.  This Agreement alone fully and completely expresses the agreement of the parties relating to the subject matter hereof.  There are no other courses of dealing, understandings, agreements, representations, or warranties, written or oral, except as set forth herein.

8.07

Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument.

8.08

Third Party Beneficiaries.   This Agreement is solely between Buyer and Seller and no director, officer, stockholder, employee, agent independent contractor, manager, member or any other person or entity shall be deemed to be a third party beneficiary of this Agreement.

8.09

Assignment.  No party shall assign or attempt to assign any of its rights or obligations under this Agreement without the prior written consent of each of the other parties hereto; provided, however, that without such consent, but upon notice to Seller, Buyer may assign all of its rights and obligations hereunder to any subsidiary of Buyer so designated by Buyer.

8.10

Amendment or Waiver.  Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and such remedies may be enforced concurrently, and no waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing.  At any time prior to the Closing Date, this Agreement may be amended by a writing signed by all parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance thereof may be extended by a writing signed by the party or parties for whose benefit the provision is intended.

IN WITNESS WHEREOF, the corporate parties hereto have caused this Agreement to be executed by their respective officers, hereunto duly authorized, as of the date first above written.

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SELLER: Global Sports Edge, Inc.

BUYER:  Betbrokers PLC

             

    A Delaware Corporation

    A United Kingdom Corporation

By:_____________________________

By:____________________________

     Wayne Allyn Root, CEO

     Wayne Lochner, Chairman

PARENT CORPORATION OF SELLER:

Winning Edge International, Inc.

By:_____________________________

_______________________________

      Name:

     Wayne Allyn Root

      Title:

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