Document:

exv4w3

Exhibit 4.3

EXECUTION COPY

SECURITY AGREEMENT

dated as of

August 13, 2010,

among

DIAMOND RESORTS PARENT, LLC,

DIAMOND RESORTS HOLDINGS, LLC,

DIAMOND RESORTS CORPORATION

the other Subsidiaries of the Company

from time to time party hereto

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Collateral Agent

[CS&M Ref. No. 2162-537]

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Indenture
	 	 	1	 
	SECTION 1.02. Other Defined Terms
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	Pledge of Securities
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Pledge
	 	 	8	 
	SECTION 2.02. Delivery of the Pledged Collateral
	 	 	9	 
	SECTION 2.03. Representations, Warranties and Covenants
	 	 	10	 
	SECTION 2.04. Certification of Limited Liability Company Interests and Limited
Partnership Interests
	 	 	11	 
	SECTION 2.05. Registration in Nominee Name; Denominations
	 	 	11	 
	SECTION 2.06. Voting Rights; Dividends and Interest, Etc
	 	 	12	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Security Interests in Personal Property
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Security Interest
	 	 	14	 
	SECTION 3.02. Representations and Warranties
	 	 	16	 
	SECTION 3.03. Covenants
	 	 	18	 
	SECTION 3.04. Other Actions
	 	 	22	 
	SECTION 3.05. Covenants Regarding Patent, Trademark and Copyright Collateral
	 	 	24	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Remedies
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Remedies Upon Default
	 	 	26	 
	SECTION 4.02. Application of Proceeds
	 	 	27	 
	SECTION 4.03. Grant of License to Use Intellectual Property
	 	 	28	 
	SECTION 4.04. Securities Act, Etc
	 	 	28	 
	SECTION 4.05. Registration
	 	 	29	 
	SECTION 4.06. Disposition of Collateral
	 	 	30	 

 

ii

	 	 	 	 	 
	 	 	Page	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Indemnity, Subrogation and Subordination
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Indemnity and Subrogation
	 	 	30	 
	SECTION 5.02. Contribution and Subrogation
	 	 	31	 
	SECTION 5.03. Subordination
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Notices
	 	 	31	 
	SECTION 6.02. Security Interest Absolute
	 	 	31	 
	SECTION 6.03. Survival of Agreement
	 	 	32	 
	SECTION 6.04. Binding Effect; Several Agreement
	 	 	32	 
	SECTION 6.05. Successors and Assigns
	 	 	32	 
	SECTION 6.06. Collateral Agent’s Fees and Expenses; Indemnification
	 	 	33	 
	SECTION 6.07. Collateral Agent Appointed Attorney-in-Fact
	 	 	33	 
	SECTION 6.08. Applicable Law
	 	 	34	 
	SECTION 6.09. Waivers; Amendment
	 	 	34	 
	SECTION 6.10. WAIVER OF JURY TRIAL
	 	 	35	 
	SECTION 6.11. Severability
	 	 	35	 
	SECTION 6.12. Counterparts
	 	 	35	 
	SECTION 6.13. Headings
	 	 	36	 
	SECTION 6.14. Jurisdiction; Consent to Service of Process
	 	 	36	 
	SECTION 6.15. Termination or Release
	 	 	36	 
	SECTION 6.16. Additional Subsidiaries
	 	 	37	 
	SECTION 6.17. Maximum Liability
	 	 	37	 
	SECTION 6.18. Post-Closing Covenants
	 	 	37	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	Concerning the Collateral Agent
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Confirmation of Appointment
	 	 	38	 
	SECTION 7.02. Duties or Obligations
	 	 	38	 
	SECTION 7.03. Reliance; Sub-Agents
	 	 	39	 
	SECTION 7.04. Resignation of the Collateral Agent
	 	 	39	 
	SECTION 7.05. Other Matters Concerning the Collateral Agent
	 	 	40	 
	SECTION 7.06. Pari Passu Indebtedness; Junior Lien Indebtedness; Intercreditor
Agreements
	 	 	42	 

 

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Schedules

	 	 	 

	Schedule I

	 	Subsidiary Grantors
	Schedule II

	 	Equity Interests; Pledged Debt Securities
	Schedule III

	 	Excluded Equity Interests
	Schedule IV

	 	Resorts
	Schedule V

	 	Intellectual Property

Exhibits

	 	 	 

	Exhibit A

	 	Form of Supplement
	Exhibit B

	 	Form of Perfection Certificate

 

 

     SECURITY AGREEMENT dated as of August 13, 2010
(this “Agreement”), among DIAMOND RESORTS
CORPORATION, a Maryland corporation (the “Issuer”),
DIAMOND RESORTS HOLDINGS, LLC, a Nevada limited
liability company (“Holdings”) DIAMOND RESORTS
PARENT, LLC, a Nevada limited liability company (the
“Company”), the U.S. Subsidiaries of the Company
from time to time party hereto (the “Subsidiary Grantors”)
and WELLS FARGO BANK, NATIONAL ASSOCIATION, as
collateral agent (in such capacity, the
“Collateral Agent”).

Preliminary Statement

          Reference is made to (a) the Indenture dated as of August 13, 2010 (as amended, restated,
supplemented or otherwise modified from time to time, the “Indenture”), by and
among the Issuer, Holdings, the Company, the Subsidiary Grantors party thereto and Wells Fargo
Bank, National Association, as Trustee (in such capacity, the “Trustee”) and (b)
the Purchase Agreement dated as of August 10, 2010 (as amended, restated, supplemented or
otherwise modified from time to time, the “Purchase Agreement”), among the Issuer
and Credit Suisse Securities (USA) LLC, Banc of America Securities LLC and Guggenheim
Securities, LLC, each as representative of the initial purchasers (the “Initial
Purchasers”). The Trustee has agreed to enter into the Indenture and the Initial
Purchasers have agreed to purchase Notes (as defined in the Indenture), in each case on the
terms and subject to the conditions set forth in the Purchase Agreement.

          The obligations of the Initial Purchasers to purchase the Notes are conditioned upon,
among other things, the execution and delivery of this Agreement by the Issuer and each other
Grantor. Each Grantor (other than the Issuer) is an affiliate of the Issuer, will derive
substantial benefits from the purchase of the Notes by the Initial Purchasers from the Issuer
pursuant to the Purchase Agreement, and each Grantor is willing to execute and deliver this
Agreement in order to induce the Initial Purchasers to purchase the Notes. Accordingly, the
parties hereto agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. Indenture. (a) Capitalized terms used in this Agreement and not
otherwise defined herein have the meanings set forth in the Indenture. All capitalized terms
defined in the New York UCC (as such term is defined herein) and not defined in this Agreement
have the meanings specified therein. All references to the Uniform Commercial Code shall mean
the New York UCC.

 

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          (b) The rules of construction specified in Section 1.04 of the Indenture also apply to
this Agreement.

          SECTION 1.02. Other Defined Terms. As used in this Agreement, the following
terms have the meanings specified below:

          “Accounts Receivable” shall mean all Accounts and all right, title and interest
in any returned goods, together with all rights, titles, securities and guarantees with respect
thereto, including any rights to stoppage in transit, replevin, reclamation and resales, and all
related security interests, liens and pledges, whether voluntary or involuntary, in each case
whether now existing or owned or hereafter arising or acquired.

          “Agreement” shall have the meaning assigned to such term in the preliminary
statement.

          “Article 9 Collateral” shall have the meaning assigned to such
term in Section 3.01.

          “Collateral” shall mean the Article 9 Collateral and the Pledged Collateral.

          “Collateral Agent” shall have the meaning assigned to such term in the
preliminary statement.

          “Collection” shall mean each of the Diamond Resorts U.S. Collection, the
Diamond Resorts Hawaii Collection, the Diamond Resorts California Collection and any successor
or similar club.

          “Company” shall have the meaning assigned to such term in the
preliminary statement.

          “Copyright License” shall mean any written agreement, now or hereafter in
effect, granting any right to any third person under any copyright now or hereafter owned by
any Grantor or that such Grantor otherwise has the right to license, or granting any right to
any Grantor under any copyright now or hereafter owned by any third person, and all rights of
such Grantor under any such agreement.

          “Copyrights” shall mean all of the following now owned or hereafter acquired
by any Grantor: (a) all copyright rights in any work subject to the copyright laws of the
United States or any other country, whether as author, assignee, transferee or otherwise, and
(b) all registrations and applications for registration of any such copyright in the United
States or any other country, including registrations, recordings, supplemental registrations
and pending applications for registration in the United States Copyright Office (or any
successor office or any similar office in any other country), including those listed on
Schedule V.

          “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all
other liquidation, conservatorship, bankruptcy, assignment for the benefit of

 

3

creditors, moratorium, rearrangement, receivership, insolvency, reorganization or similar
debtor relief laws of the United States or other applicable jurisdictions from time to time in
effect and affecting the rights of creditors generally.

          “Excluded
Accounts” means (a) payroll accounts,
(b) employee trust accounts, (c)
escrow accounts, (d) cash collateral accounts for credit card companies, (e) tax accounts, (f)
accounts containing rental payments for Resort occupancy collected on behalf of the applicable
homeowners’ association or individual unit owners and that may not be controlled without the
consent of such parties and (g) accounts containing amounts collected on behalf of business
partners of a Grantor and that may not be controlled without the consent of such business
partners; provided that, in the case of clauses (f) and (g), such accounts are reconciled no
less frequently than once a month and all amounts allocated to the Company, the Issuer or a
Subsidiary Grantor in such reconciliations are deposited reasonably promptly in a Deposit
Account that is controlled in accordance with Section 3.04(b).

          “Excluded Collateral” means all Timeshare Receivables, Excluded Accounts and
Excluded Stock Collateral.

          “Excluded Stock Collateral” shall have the meaning assigned to such term in
Section 2.01.

          “Executive Services Agreement” shall mean the Homeowner Association Oversight,
Consulting and Executive Management Executive Services Agreement dated as of August 13, 2010 by
and between Diamond Resorts Corporation, a Maryland corporation, and HM&C, a Nevada limited
liability company.

          “Federal
Securities Laws” shall have the meaning assigned to such
term in
Section 4.04.

          “General Intangibles” shall mean all choses in action and causes of action and
all other intangible personal property of any Grantor of every kind and nature (other than
Accounts) now owned or hereafter acquired by any Grantor, including all rights and interests in
partnerships, limited partnerships, limited liability companies and other unincorporated
entities, corporate or other business records, indemnification claims, contract rights
(including rights under leases, whether entered into as lessor or lessee, Hedging Agreements,
Material Contracts and other agreements), Intellectual Property, goodwill, registrations,
franchises, tax refund claims and any letter of credit, guarantee, claim, security interest or
other security held by or granted to any Grantor to secure payment by an Account Debtor of any
of the Accounts.

          “Governmental
Authority” means the government of the United States of America,
any other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of
or pertaining to government (including any supra-national body exercising such powers or
functions, such as the European Union or the European Central Bank).

 

4

          “Grantors” shall mean the Issuer, the Company, Holdings and the Subsidiary
Grantors.

          “Holdings” shall have the meaning assigned to such term in the preliminary
statement.

          “Indenture” shall have the meaning assigned to such term in the preliminary
statement.

          “Initial Purchasers” shall have the meaning assigned to such term in the preliminary
statement.

          “Intellectual Property” shall mean all intellectual and similar property of any Grantor of
every kind and nature now owned or hereafter acquired by any Grantor, including inventions,
designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary
technical and business information, know-how, show-how or other data or information, software
and databases and all embodiments or fixations thereof and related documentation, registrations
and franchises, and all additions, improvements and accessions to, and books and records
describing or used in connection with, any of the foregoing.

          “Issuer” shall have the meaning assigned to such term in the preliminary statement.

          “License” shall mean any Patent License, Trademark License, Copyright License or other
license or sublicense agreement relating to Intellectual Property to which any Grantor is a
party, including those listed on Schedule V.

          “Material Contracts” shall mean the Executive Services Agreement, each Property Management
Agreement, all material agreements of each Collection and any material agreements related to a
Reservation System.

          “New York UCC” shall mean the Uniform Commercial Code as from time to time
in effect in the State of New York.

          “Notes Documents” means (a) the Notes, the Notes Guarantees, the Indenture, this
Agreement, the other Security Documents and any applicable Intercreditor Agreement entered into
after the date hereof and (b) any other related document or instrument executed and delivered
pursuant to any Notes Document described in clause (a) evidencing or governing any Notes
Obligations thereunder.

          “Notes Guarantees” shall mean the guarantee pursuant to the Indenture by each Grantor of
the Issuer’s obligations under the Indenture and the Notes.

          “Notes Obligations” means (a) the due and punctual payment by the Issuer of (i) the
principal of and interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Notes, when and as due,

 

5

whether at maturity, on an Interest Payment Date, by acceleration, repurchase, redemption,
upon one or more dates set for prepayment or otherwise and interest on the overdue principal of
and interest on the Notes and (ii) all other monetary obligations of the Issuer to any of the
Secured Parties under the Indenture and each of the other Notes Documents, including obligations
to pay fees, expense reimbursement obligations and indemnification obligations, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), (b) the due and punctual
performance of all other obligations of the Issuer to any of the Secured Parties under or
pursuant to the Indenture and each of the other Notes Documents and (c) the due and punctual
payment and performance of all the obligations of each other Grantor to any of the Secured
Parties under or pursuant to this Agreement and each of the other Notes Documents (including
monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such proceeding).

          “Patent License” shall mean any written agreement, now or hereafter in effect, granting to
any third person any right to make, use or sell any invention on which a patent, now or
hereafter owned by any Grantor or that any Grantor otherwise has the right to license, is in
existence, or granting to any Grantor any right to make, use or sell any invention on which a
patent, now or hereafter owned by any third person, is in existence, and all rights of any
Grantor under any such agreement.

          “Patents” shall mean all of the following now owned or hereafter acquired by any Grantor:
(a) all letters patent of the United States or the equivalent thereof in any other country, all
registrations and recordings thereof, and all applications for letters patent of the United
States or the equivalent thereof in any other country, including registrations, recordings and
pending applications in the United States Patent and Trademark Office (or any successor or any
similar offices in any other country), including those listed on Schedule V, and (b) all
reissues, continuations, divisions, continuations-in-part, renewals or extensions thereof, and
the inventions disclosed or claimed therein, including the right to make, use and/or sell the
inventions disclosed or claimed therein.

          “Perfection Certificate” shall mean a certificate substantially in the form of Exhibit B,
completed and supplemented with the schedules and attachments contemplated thereby, and duly
executed by an Officer of the Issuer, Holdings and the Company.

          “Points” shall mean points or a similar form of currency, the redemption of which entitles
the holder thereof to reserve the use and occupancy of a residential accommodation at a Points
Based Resort.

          “Points Based Resort” shall mean the Resorts identified on Schedule IV as “Points Based
Resorts” and any other Resort that is designated after the Issue Date, by means of a
certificate delivered to the Collateral Agent by an Officer of the Company,

 

6

Holdings or the Issuer, as a Resort at which holders of Points Based Time Share Interests
are entitled to reserve the use and occupancy of residential accommodations.

          “Points Based Time Share Interest” shall mean a Time Share Interest (including a club
membership) that is denominated in Points. Any Grantor that is a seller of Points Based Time
Share Interests shall be deemed the owner of a Points Based Time Share Interest to the extent
of its unsold Points from time to time.

          “Pledged Collateral” shall have the meaning assigned to such term in Section 2.01.

          “Pledged Debt Securities” shall have the meaning assigned to such term in Section 2.01.

          “Pledged Securities” shall mean any promissory notes, stock certificates or other
securities now or hereafter included in the Pledged Collateral, including all certificates,
instruments or other documents representing or evidencing any Pledged Collateral.

          “Pledged Stock” shall have the meaning assigned to such term in Section
2.01.

          “Property Management Agreement” shall mean a management agreement entered into by and
between a homeowners’ association and a property management company, pursuant to which the
property manager is to provide management and other services with respect to a Resort.

          “Purchase Agreement” shall have the meaning assigned to such term in the preliminary
statement.

          “Reservation System” shall mean the reservation system operated by THE Club, a Florida
corporation, and any other system(s) pursuant to which reservations for particular locations,
times, lengths of stay and unit types at Points Based Resorts with respect to Points Based Time
Share Interests are received, accepted, modified or canceled.

          “Resort” shall mean a time share residential real estate property identified on Schedule
IV or any other time share residential real estate property in which any Grantor sells Time
Share Interests after the Issue Date, including in each case the land on which such project is
located, all buildings and other improvements thereon and all fixtures located at or used in
connection with such project.

          “Secured Parties” shall mean (a) the Holders, (b) the Collateral Agent, (c) the Trustee,
(d) the beneficiaries of each indemnification obligation undertaken by any Grantor under any
Notes Document and (e) the successors and assigns of each of the foregoing.

 

7

          “Security Interest” shall have the meaning assigned to such term in Section 3.01.

          “Subsidiary Grantor” shall have the meaning assigned to such term in the preliminary
statement.

          “Time Share Interest” shall mean a timeshare interest or interval, however defined in the
applicable condominium or timeshare declaration, trust agreement or other relevant document or
instrument pursuant to which such timeshare interest or interval is created, whether or not
coupled with a fee simple interest in real estate, together with all rights, benefits,
privileges and interests appurtenant thereto, including the right to use and occupy a
residential unit within the applicable Resort and the common areas and common furnishings
appurtenant to such unit for a specified period of time, on an annual or a biennial basis, as
more specifically described in the applicable declaration or other relevant document or
instrument. Time Share Interests shall include Points Based Time Share Interests.

          “Time Share Mortgage” shall mean a mortgage, deed of trust or other security interest on
or with respect to a Time Share Interest, including any financing instruments for Time Share
Interests in St. Maarten and for Points Based Time Share Interests.

          “Time Share Receivables” shall mean Time Share Mortgage receivables originated upon the
sale of Time Share Interests.

          “Trademark License” shall mean any written agreement, now or hereafter in effect, granting
to any third person any right to use any trademark now or hereafter owned by any Grantor or
that any Grantor otherwise has the right to license, or granting to any Grantor any right to
use any trademark now or hereafter owned by any third person, and all rights of any Grantor
under any such agreement.

          “Trademarks” shall mean all of the following now owned or hereafter acquired by any
Grantor: (a) all trademarks, service marks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, trade dress, logos, other source or
business identifiers, designs and general intangibles of like nature, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and all registration and
recording applications filed in connection therewith, including registrations and registration
applications in the United States Patent and Trademark Office (or any successor office) or any
similar offices in any State of the United States or any other country or any political
subdivision thereof, and all extensions or renewals thereof, including those listed on Schedule
V, (b) all goodwill associated therewith or symbolized thereby and (c) all other assets, rights
and interests that uniquely reflect or embody such goodwill.

          “Trustee” shall have the meaning assigned to such term in the preliminary statement.

 

8

ARTICLE II

Pledge of Securities

          SECTION 2.01. Pledge. As security for the payment or performance, as the case may be, in
full of the Notes Obligations, each Grantor hereby assigns and pledges to the Collateral Agent,
its successors and assigns, for the ratable benefit of the Secured Patties, and hereby grants
to the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured
Parties, a first-priority security interest in, all of such Grantor’s right, title and interest
in, to and under:

     (a) (i) the Equity Interests owned by such Grantor on the date hereof (including
all such Equity Interests listed on Schedule II), (ii) any other Equity Interests
obtained in the future by such Grantor and (iii) the certificates representing all such
Equity Interests (all the foregoing collectively referred to herein as the “Pledged
Stock”); provided, however, that the Pledged Stock shall not include (x) more than 66%
of the issued and outstanding voting Equity Interests of any first tier Foreign
Subsidiary to the extent that the pledge of any greater percentage would result in
adverse tax consequences to the Company, (y) any Equity Interests of Citrus Insurance
Company, Inc. a Nevada corporation, so long as the net worth of such Subsidiary is less
than $500,000 or (z) any Equity Interests of any Subsidiary set forth on Schedule III to
this Agreement;

     (b) (i) the debt securities held by such Grantor on the date hereof (including all
such debt securities listed opposite the name of such Grantor on Schedule II), (ii) any
debt securities in the future issued to such Grantor and (iii) the promissory notes and
any other instruments evidencing such debt securities (all the foregoing collectively
referred to herein as the “Pledged Debt Securities”);

     (c) all other property that may be delivered to and held by the Collateral Agent
pursuant to the terms of this Section 2.01;

     (d) subject to Section 2.06, all payments of principal or interest, dividends,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of, in exchange for or upon the conversion of, and all
other Proceeds received in respect of, the securities referred to in clauses (a) and
(b) above;

     (e) subject to Section 2.06, all rights and privileges of such Grantor with
respect to the securities and other property referred to in clauses (a), (b), (c) and
(d) above; and

     (f) all Proceeds of any of the foregoing (the items referred to in
clauses (a) through (f) above being collectively referred to as the
“Pledged Collateral”);

provided, however, that notwithstanding the foregoing, Pledged Collateral shall not include at
any time any Timeshare Receivables.

 

9

          Notwithstanding the foregoing, the capital stock and securities of any Subsidiary Grantor
will constitute Pledged Collateral with respect to the Notes only to the extent that the
securing of the Notes with such capital stock and securities would not require such Subsidiary
Grantor to file separate financial statements with the SEC under Rule 3-16 of Regulation S-X
under the Securities Act. In the event that Rule 3-16 of Regulation S-X under the Securities Act
requires or is amended, modified or interpreted by the SEC to require (or is replaced with
another rule or regulation that would require) the filing with the SEC of separate financial
statements of any Subsidiary Grantor due to the fact that such Subsidiary Grantor’s capital
stock and securities secure the Notes, then the capital stock and securities of such Subsidiary
Grantor shall automatically be deemed not to be part of the Pledged Collateral (but only to the
extent necessary for such Subsidiary Grantor to not be subject to such requirement to provide
separate financial statements) and such excluded portion of the capital stock and securities is
referred to as the “Excluded Stock Collateral”. In such event, the Security Documents may be
amended, modified or supplemented, without the consent of any Holder, to the extent necessary to
release the security interests on the Excluded Stock Collateral. In the event that Rule 3-16 of
Regulation S-X under the Securities Act is amended, modified or interpreted by the SEC to permit
(or is replaced with another rule or regulation that would permit) any Subsidiary Grantor’s
Excluded Stock Collateral to secure the Notes in excess of the amount then pledged without the
filing with the SEC of separate financial statements of such Subsidiary Grantor, then the
capital stock and securities of such Subsidiary Grantor shall automatically be deemed to be a
part of the Pledged Collateral (but only to the extent possible without such Subsidiary Grantor
becoming subject to any such filing requirement). In such event, the Security Documents may be
amended or modified, without the consent of any Holder, to the extent necessary to subject to
the Liens under the Security Documents such additional capital stock and securities.

          TO HAVE AND TO HOLD the Pledged Collateral, together with all right title, interest,
powers, privileges and preferences pertaining or incidental thereto, unto the Collateral Agent,
its successors and assigns, for the ratable benefit of the Secured Parties, forever; subject,
however, to the terms, covenants and conditions hereinafter set forth.

          SECTION 2.02. Delivery of the Pledged Collateral. (a) Each Grantor agrees promptly to
deliver or cause to be delivered to the Collateral Agent any and all certificates, instruments
or other documents representing or evidencing Pledged Securities.

          (b) Each Grantor agrees promptly to deliver or cause to be delivered to the Collateral
Agent any and all Pledged Debt Securities.

          (c) Upon delivery to the Collateral Agent, (i) any certificate, instrument or document
representing or evidencing Pledged Securities shall be accompanied by undated stock powers duly
executed in blank or other undated instruments of transfer satisfactory to the Collateral Agent
and duly executed in blank and by such other instruments and documents as the Collateral Agent
may reasonably request and (ii) all other property comprising part of the Pledged Collateral
shall be accompanied by proper instruments of assignment duly executed by the applicable
Grantor and such other

 

10

instruments or documents as the Collateral Agent may reasonably request. Each
delivery of Pledged Securities shall be accompanied by a schedule describing the applicable
securities, which schedule shall be attached hereto as Schedule II and made a part hereof;
provided that failure to attach any such schedule hereto shall not affect the
validity of the pledge of such Pledged Securities. Each schedule so delivered shall supplement
any prior schedules so delivered.

          SECTION 2.03. Representations, Warranties and Covenants. Each Grantor, with
respect to itself and its Subsidiaries, represents, warrants and covenants to and with the
Collateral Agent, for the benefit of the Secured Parties, that:

     (a) Schedule II correctly sets forth the percentage of the issued and outstanding
shares of each class of the Equity Interests of the issuer thereof represented by such
Pledged Stock and includes all Equity Interests, debt securities and promissory notes
required to be pledged hereunder;

     (b) the Pledged Stock and Pledged Debt Securities have been duly and validly
authorized and issued by the issuers thereof and (i) in the case of Pledged Stock, are
fully paid and nonassessable and (ii) in the case of Pledged Debt Securities, are
legal, valid and binding obligations of the issuers thereof;

     (c) except for the security interests granted hereunder (or otherwise permitted
under the Indenture), each Grantor (i) is and, subject to any transfers made in
compliance with the Indenture, will continue to be the direct owner, beneficially and
of record, of the Pledged Securities indicated on Schedule II as owned by such Grantor,
(ii) holds the same free and clear of all Liens other than Liens expressly permitted
pursuant to Section 4.10 of the Indenture, (iii) will make no assignment, pledge,
hypothecation or transfer of, or create or permit to exist any security interest in or
other Lien on, the Pledged Collateral, other than transfers made in compliance with the
Indenture, and (iv) subject to Section 2.06, will cause any and all Pledged Collateral,
whether for value paid by such Grantor or otherwise, to be forthwith deposited with the
Collateral Agent and pledged or assigned hereunder;

     (d) except for restrictions and limitations imposed by the Notes Documents, or
securities laws generally, the Pledged Collateral is and will continue to be freely
transferable and assignable, and none of the Pledged Collateral is or will be subject to
any option, right of first refusal, shareholders agreement, charter, by-law provisions
or other organizational documents or contractual restriction of any nature that might
prohibit, impair, delay or otherwise affect the pledge of such Pledged Collateral
hereunder, the sale or disposition thereof pursuant hereto or the exercise by the
Collateral Agent of rights and remedies hereunder;

     (e) each Grantor (i) has the power and authority to pledge the Pledged Collateral
pledged by it hereunder in the manner hereby done or contemplated and (ii) will defend
its title or interest thereto or therein against any and all Liens

 

11

(other than any Lien created or permitted by the Notes Documents), however
arising, of all persons whomsoever;

     (f) no consent or approval of any Governmental Authority, any securities exchange
or any other person was or is necessary to the validity of the pledge effected hereby
(other than such as have been obtained and are in full force and effect);

     (g) by virtue of the execution and delivery by each Grantor of this Agreement,
when any Pledged Securities are delivered to the Collateral Agent in accordance with
this Agreement, the Collateral Agent will obtain a legal, valid and perfected first
priority lien upon and security interest in such Pledged Securities as security for the
payment and performance of the Obligations, prior to any other Lien on any of the
Pledged Securities other than any Liens expressly permitted pursuant to Section 4.10 of
the Indenture that have priority as a matter of law; and

     (h) the pledge effected hereby is effective to vest in the Collateral Agent, for
the ratable benefit of the Secured Parties, the rights of the Collateral Agent in the
Pledged Collateral as set forth herein and all action by any Grantor necessary or
desirable to protect and perfect the Lien on the Pledged Collateral has been duly
taken.

          SECTION 2.04. Certification of Limited Liability Company Interests and Limited Partnership
Interests. (a) Each Grantor acknowledges and agrees that (i) each interest in any limited
liability company or limited partnership Controlled by such Grantor, pledged hereunder and
represented by a certificate shall be a “security” within the meaning of Article 8 of the New
York UCC and shall be governed by Article 8 of the New
York UCC and
(ii) each such interest shall at all times hereafter be represented by a certificate.

          (b) Each Grantor further acknowledges and agrees that (i) each interest in any limited
liability company or limited partnership Controlled by such Grantor, pledged hereunder and not
represented by a certificate shall not be a “security” within the meaning of Article 8 of the
New York UCC and shall not be governed by Article 8 of
the New York UCC, and (ii) such Grantor shall at no time elect to treat any such interest as a “security”
within the meaning of Article 8 of the New York UCC or issue any certificate
representing such interest, unless the Grantor provides prior written notification to the
Collateral Agent of such election and immediately delivers any such certificate to the
Collateral Agent pursuant to the terms hereof.

     SECTION 2.05. Registration in Nominee Name; Denominations. The Collateral Agent, on behalf
of the Secured Parties, shall have the right (in its sole and absolute discretion) to hold the
Pledged Securities in its own name as pledgee or secured party, the name of its nominee (as
pledgee or as sub-agent) or the name of the applicable Grantor, endorsed or assigned in blank
or in favor of the Collateral Agent. Each Grantor will promptly give to the Collateral Agent
written copies of any notices or other

 

12

communications received by it with respect to Pledged Securities in its capacity as the
registered owner thereof. The Collateral Agent shall at all times have the right to exchange any
certificates representing Pledged Securities for certificates of smaller or larger denominations
for any purpose consistent with this Agreement.

          SECTION 2.06. Voting Rights; Dividends and Interest, Etc. (a) Unless and until an Event of
Default shall have occurred and be continuing and the Collateral Agent shall have given the
Grantors notice of its intent to exercise its rights under this Agreement (which notice shall be
deemed to have been given immediately upon the occurrence of an Event of Default under Sections
6(a)(viii) or 6(a)(ix) of the Indenture):

     (i) Each Grantor shall be entitled to exercise any and all voting and/or other
consensual rights and powers inuring to an owner of Pledged Securities or any part thereof
for any purpose consistent with the terms of this Agreement, the Indenture and the other
Notes Documents; provided, however, that such rights and powers shall not be exercised in
any manner that could materially and adversely affect the rights inuring to a holder of
any Pledged Securities or the rights and remedies of any of the Collateral Agent or the
other Secured Parties under this Agreement or the Indenture or any other Notes Document or
the ability of the Secured Parties to exercise the same.

     (ii) The Collateral Agent shall execute and deliver to each Grantor, or cause to be
executed and delivered to each Grantor, all such proxies, powers of attorney and other
instruments as such Grantor may reasonably request for the purpose of enabling such
Grantor to exercise the voting and/or consensual rights and powers it is entitled to
exercise pursuant to paragraph (i) above.

     (iii) Each Grantor shall be entitled to receive and retain any and all dividends,
interest, principal and other distributions paid on or distributed in respect of the
Pledged Securities to the extent and only to the extent that such dividends, interest,
principal and other distributions are permitted by, and otherwise paid or distributed in
accordance with, the terms and conditions of the Indenture, the other Notes Documents and
applicable law; provided, however, that any noncash dividends, interest, principal or other
distributions that would constitute Pledged Stock or Pledged Debt Securities, whether
resulting from a subdivision, combination or reclassification of the outstanding Equity
Interests of the issuer of any Pledged Securities or received in exchange for Pledged
Securities or any part thereof, or in redemption thereof, or as a result of any merger,
consolidation, acquisition or other exchange of assets to which such issuer may be a party
or otherwise, shall be and become part of the Pledged Collateral, and, if received by any
Grantor, shall not be commingled by such Grantor with any of its other funds or property
but shall be held separate and apart therefrom, shall be held in trust for the ratable
benefit of the Secured Parties and shall be forthwith delivered to the Collateral Agent in
the same form as so received (with any necessary endorsement or instrument of assignment).
This paragraph (iii) shall not apply to dividends between or among the Issuer, the Grantors
and any Subsidiaries only of property subject to a perfected security

 

13

interest under this Agreement; provided that the Issuer notifies the Collateral Agent in
writing, specifically referring to this Section 2.06 at the time of such dividend and
takes any actions the Collateral Agent specifies to ensure the continuance of its
perfected security interest in such property under this Agreement.

          (b) Upon the occurrence and during the continuance of an Event of Default, after the
Collateral Agent shall have notified (or shall be deemed to have notified pursuant to Section
2.06(a)) the Grantors in writing of the suspension of their rights under paragraph (a)(iii) of this
Section 2.06, then all rights of any Grantor to dividends, interest, principal or other
distributions that such Grantor is authorized to receive pursuant to paragraph (a)(iii) of this
Section 2.06 shall cease, and all such rights shall thereupon become vested in the Collateral
Agent, which shall have the sole and exclusive right and authority to receive and retain such
dividends, interest, principal or other distributions. All dividends, interest, principal or other
distributions received by any Grantor contrary to the provisions of this Section 2.06 shall be held
in trust for the benefit of the Collateral Agent, shall be segregated from other property or funds
of such Grantor and shall be forthwith delivered to the Collateral Agent upon demand in the same
form as so received (with any necessary endorsement or instrument of assignment). Any and all money
and other property paid over to or received by the Collateral Agent pursuant to the provisions of
this paragraph (b) shall be retained by the Collateral Agent in an account to be established by the
Collateral Agent upon receipt of such money or other property and shall be applied in accordance
with the provisions of Section 4.02. After all Events of Default have been cured or waived and each
applicable Grantor has delivered to the Trustee certificates to that effect, the Collateral Agent
shall, promptly after all such Events of Default have been cured or waived, repay to each
applicable Grantor (without interest) all dividends, interest, principal or other distributions
that such Grantor would otherwise be permitted to retain pursuant to the terms of paragraph
(a)(iii) of this Section 2.06 and that remain in such account.

          (c) Upon the occurrence and during the continuance of an Event of Default, after the
Collateral Agent shall have notified (or shall be deemed to have notified pursuant to Section
2.06(a)) the Grantors in writing of the suspension of their rights under paragraph (a)(i) of this
Section 2.06, then all rights of any Grantor to exercise the voting and consensual rights and
powers it is entitled to exercise pursuant to paragraph (a)(i) of this Section 2.06, and the
obligations of the Collateral Agent under paragraph (a)(ii) of this Section 2.06, shall cease, and
all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole
and exclusive right and authority to exercise such voting and consensual rights and powers;
provided that, unless otherwise directed by the Trustee or the requisite Holders under the
Indenture, the Collateral Agent shall have the right from time to time following and during the
continuance of an Event of Default to permit the Grantors to exercise such rights.

          (d) Any notice given by the Collateral Agent to the Grantors exercising its rights under
paragraph (a) of this Section 2.06 (i) shall be in writing, (ii) may be given to one or more of the
Grantors at the same or different times and (iii) may suspend the rights of the Grantors under
paragraph (a)(i) or paragraph (a)(iii) in part without suspending all

 

14

such rights (as specified by the Collateral Agent in its sole and absolute discretion) and without
waiving or otherwise affecting the Collateral Agent’s rights to give additional notices from time
to time suspending other rights so long as an Event of Default has occurred and is continuing.

ARTICLE III

Security Interests in Personal Property

          SECTION
3.01. Security Interest. (a) As security for the payment or performance, as the case
may be, in full of the Notes Obligations, each Grantor hereby assigns and pledges to the
Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, and
hereby grants to the Collateral Agent, its successors and assigns, for the ratable benefit of the
Secured Parties, a security interest (the “Security Interest”), in all right, title or interest in
or to any and all of the following assets and properties now owned or at any time hereafter
acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire
any right, title or interest (collectively, the “Article 9 Collateral”):

     (i) all Accounts;

     (ii) all Chattel Paper;

     (iii) all cash and Deposit Accounts;

     (iv) all Documents;

     (v) all Equipment;

     (vi) all General Intangibles;

     (vii) all Instruments;

     (viii) all Inventory;

     (ix) all Investment Property;

     (x) all Letter-of-Credit Rights;

     (xi) all Commercial Tort Claims;

     (xii) all books and records pertaining to the Article 9 Collateral; and

     (xiii) to the extent not otherwise included, all Proceeds and products of any and all
of the foregoing and all collateral security and guarantees given by any person with
respect to any of the foregoing;

provided, however, that notwithstanding the foregoing, Article 9 Collateral shall not

 

15

include at any time (A) any Excluded Collateral, (B) any property to the extent that a grant of a
security interest in or other Lien on such property, or the perfection of any such Lien, is
prohibited by any law; provided, that such security interest in or Lien on such property, or the
perfection of such Lien, shall be included in the Collateral immediately at such time it is no
longer prohibited by any such law, (C) any Grantor’s rights or interests under any contract or
agreement to which such Grantor is a party (other than a Material Contract) to the extent that (1)
such rights or interests are not assignable or capable of being encumbered under the terms of the
contract or agreement applicable thereto (but solely to the extent that any such restriction shall
be enforceable under applicable law, including Section 9-406, 9-407, 9-408 or 9-409 of the New York
UCC, in respect of the grant of a security interest hereunder), without the consent of the other
applicable party thereto and (2) such consent has not been obtained; provided, however, that such
security interest shall attach immediately at such time as such contract or agreement may be
assigned or is capable of being so encumbered or such consent has been obtained, as the case may
be, and, to the extent severable, shall attach immediately to any portion of such contract or
agreement that may be assigned or encumbered or such consent has been obtained, as the case may be,
including any Proceeds of such contract or agreement, or (D) any vehicle subject to a certificate
of title or similar statute and having a value of less than $100,000.

          For the avoidance of doubt, and in furtherance and not limitation of any other provision
herein, the Article 9 Collateral shall include an assignment, as security for the Notes
Obligations, of the Material Contracts and all of each Grantor’s rights thereunder, including all
payments of any kind for or with respect to the obligations under a Material Contract and the
right to make all waivers, amendments and agreements, to exercise any election or option, to grant
any consent, waiver or approval, to give and receive duplicate copies of all notices and other
instruments or communications, to declare any default, to take such action and exercise such
rights and remedies including the commencement, conduct and consummation of legal, administrative
or other proceedings, as shall be permitted by a Material Contract or by law, and to do any and
all other things whatsoever which the Collateral Agent or parties to a Material Contract are or
may be entitled to do under such Material Contract.

          (b) Each Grantor hereby irrevocably authorizes the Collateral Agent at any time and from time
to time to file in any relevant jurisdiction any initial financing statements (including fixture
filings) with respect to the Article 9 Collateral or any part thereof and amendments thereto that
(i) indicate the Article 9 Collateral as “all assets, other than time share receivables or
consumer loans” of such Grantor or words of similar effect, and (ii) contain the information
required by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the
filing of any financing statement or amendment, including (A) whether such Grantor is an
organization, the type of organization and any organizational identification number issued to such
Grantor and (B) in the case of a financing statement filed as a fixture filing, a sufficient
description of the real property to which such Article 9 Collateral relates. Each Grantor agrees
to provide such information to the Collateral Agent promptly upon request. The Collateral Agent
shall be authorized to file, but shall not be responsible for filing, any financing or
continuation statements or recording any documents or instruments in any public office at

 

16

any time or times or otherwise perfecting or monitoring or maintaining the perfection of any
security interest in the Collateral. It is expressly agreed, to the maximum extent permitted by
applicable law, that the Collateral Agent shall have no responsibility for (i) taking any necessary
steps to preserve rights against any Person with respect to any Collateral or (ii) taking any
action to protect against any diminution in value of the Collateral, but, in each case (A) subject
to the requirement that the Collateral Agent may not act or omit to take any action if such act or
omission would constitute gross negligence or willful misconduct, as determined by a court of
competent jurisdiction in a final and nonappealable judgment and (B) the Collateral Agent may do so
and all expenses reasonably incurred in connection therewith shall be part of the Notes
Obligations.

          Each Grantor also ratifies its authorization for the Collateral Agent to file in any relevant
jurisdiction any initial financing statements or amendments thereto if filed prior to the date
hereof.

          The Collateral Agent is further authorized to file with the United States Patent and
Trademark Office or United States Copyright Office (or any successor office or any similar office
in any other country) such documents as may be necessary or advisable for the purpose of
perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by each
Grantor, without the signature of any Grantor, and naming any Grantor or the Grantors as debtors
and the Collateral Agent as secured party.

          (c) The Security Interest is granted as security only and shall not subject the Collateral
Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of
any Grantor with respect to or arising out of the Article 9 Collateral, including the Material
Contracts.

          SECTION 3.02. Representations and Warranties. The Grantors jointly and severally represent
and warrant to the Collateral Agent and the Secured Parties that:

     (a) Each Grantor has good and valid rights in and title to the Article 9 Collateral
with respect to which it has purported to grant a Security Interest hereunder and has full
power and authority to grant to the Collateral Agent, for the ratable benefit of the
Secured Parties, the Security Interest in such Article 9 Collateral pursuant hereto and to
execute, deliver and perform its obligations in accordance with the terms of this
Agreement, without the consent or approval of any other person other than any consent or
approval that has been obtained.

     (b) The Perfection Certificate was duly prepared, completed and executed and the
information set forth therein (including (x) the exact legal name of each Grantor and (y)
the jurisdiction of organization of each Grantor) was correct and complete as of the Issue
Date. Uniform Commercial Code financing statements (including fixture filings, as
applicable) containing a description of the Article 9 Collateral have been prepared by the
Collateral Agent based upon the information provided to the Collateral Agent and the
Secured Parties in the Perfection Certificate for filing in each governmental, municipal or
other office specified in

 

17

Section 2 of the Perfection Certificate (or specified by notice from the Issuer to the Collateral
Agent after the Issue Date in the case of filings, recordings or registrations required by Sections
4.11, 4.15, 11.03 or 11.06 of the Indenture), which are all the filings, recordings and
registrations (other than filings required to be made in the United States Patent and Trademark
Office and the United States Copyright Office in order to perfect the Security Interest in the
Article 9 Collateral consisting of United States Patents, Trademarks and Copyrights) that are
necessary to publish notice of and protect the validity of and to establish a legal, valid and
perfected first-priority security interest in favor of the Collateral Agent (for the ratable
benefit of the Secured Parties) in respect of all Article 9 Collateral in which the Security
Interest may be perfected by filing, recording or registration in the United States (or any
political subdivision thereof) and its territories and possessions, and no further or subsequent
filing, refiling, recording, rerecording, registration or reregistration is necessary in any such
jurisdiction, except as provided under applicable law with respect to the filing of continuation
statements. Each Grantor represents and warrants that a fully executed agreement in the form hereof
(or a fully executed short form agreement in form and substance reasonably satisfactory to the
Collateral Agent), and containing a description of all Article 9 Collateral consisting of
Intellectual Property with respect to United States Patents and United States registered Trademarks
(and Trademarks for which United States registration applications are pending) and United States
registered Copyrights has been delivered to the Collateral Agent for recording by the United States
Patent and Trademark Office and the United States Copyright Office pursuant to 35 U.S.C. §261, 15
U.S.C. §1060 or 17 U.S.C. §205 and the regulations thereunder, as applicable, and otherwise as may
be required pursuant to the laws of any other necessary jurisdiction, to protect the validity of
and to establish a legal, valid and perfected security interest in favor of the Collateral Agent
(for the ratable benefit of the Secured Parties) in respect of all Article 9 Collateral consisting
of Patents, Trademarks and Copyrights in which a security interest may be perfected by filing,
recording or registration in the United States (or any political subdivision thereof) and its
territories and possessions, and no further or subsequent filing, refiling, recording, rerecording,
registration or reregistration is necessary (other than such actions as are necessary to perfect
the Security Interest with respect to any Article 9 Collateral consisting of Patents, Trademarks
and Copyrights (or registration or application for registration thereof) acquired or developed
after the date hereof).

     (c) The Security Interest constitutes (i) a legal and valid security interest in all Article
9 Collateral securing the payment and performance of the Notes Obligations, (ii) subject to the
filings described in Section 3.02(b), a perfected first-priority security interest in all Article
9 Collateral in which a security interest may be perfected by filing, recording or registering a
financing statement or analogous document in the United States (or any political subdivision
thereof) and its territories and possessions pursuant to the Uniform Commercial Code or other
applicable law in such jurisdictions and (iii) a first-priority security interest that shall be
perfected in all Article 9 Collateral in which a security interest may be perfected upon the
receipt and recording of this Agreement (or a short form

 

18

hereof) with the United States Patent and Trademark Office and the United States Copyright
Office, as applicable. The Security Interest is and shall be prior to any other Lien on any
of the Article 9 Collateral, other than Liens expressly permitted pursuant to Section 4.10
of the Indenture that have priority as a matter of law.

     (d) The Article 9 Collateral is owned by the Grantors free and clear of any Lien,
except for Liens expressly permitted pursuant to Section 4.10 of the Indenture. No Grantor
has filed or consented to the filing of (i) any financing statement or analogous document
under the Uniform Commercial Code or any other applicable laws covering any Article 9
Collateral, (ii) any assignment in which any Grantor assigns any Collateral or any
security agreement or similar instrument covering any Article 9 Collateral with the United
States Patent and Trademark Office or the United States Copyright Office, (iii) any notice
under the Assignment of Claims Act, or (iv) any assignment in which any Grantor assigns
any Article 9 Collateral or any security agreement or similar instrument covering any
Article 9 Collateral with any foreign governmental, municipal or other office, which
financing statement or analogous document, assignment, security agreement or similar
instrument is still in effect, except, in each case, for Liens expressly permitted
pursuant to Section 4.10 of the Indenture. No Grantor holds any Commercial Tort Claims
except as indicated on the Perfection Certificate.

          SECTION 3.03. Covenants. (a) Each Grantor agrees promptly to notify the Collateral Agent in
writing of any change in (i) its legal name, (ii) its identity or type of organization or
corporate structure, (iii) its Federal Taxpayer Identification Number or organizational
identification number, (iv) its jurisdiction of organization or (v) in the location of its chief
executive office, its principal place of business, any office in which it maintains books or
records relating to Article 9 Collateral owned by it or any office or facility at which Article 9
Collateral owned by it is located (including the establishment of any such new office or facility
in respect of any Grantor that is not a registered organization). Each Grantor agrees promptly to
provide the Collateral Agent with certified organizational documents reflecting any of the changes
described in the first sentence of this paragraph. Each Grantor agrees not to effect or permit any
change referred to in the preceding sentence unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for the Collateral Agent to continue at
all times following such change to have a valid, legal and perfected first-priority security
interest in all the Article 9 Collateral. Each Grantor agrees promptly to notify the Collateral
Agent if any material portion of the Article 9 Collateral owned or held by such Grantor is damaged
or destroyed.

          (b) Each Grantor agrees to maintain, at its own cost and expense, such complete and accurate
records with respect to the Article 9 Collateral owned by it as is consistent with its current
practices and in accordance with such prudent and standard practices used in industries that are
the same as or similar to those in which such Grantor is engaged, but in any event to include
complete accounting records indicating all payments and proceeds received with respect to any part
of the Article 9 Collateral, and, at such time or times as the Collateral Agent may request,
promptly to prepare and deliver to the Collateral Agent a duly certified schedule or schedules in
form and detail

 

19

satisfactory to the Collateral Agent showing the identity, amount and location of any and all
Article 9 Collateral.

          (c) Each year, at the time of delivery of annual financial statements with respect to the
preceding fiscal year pursuant to Section 4.02 of the Indenture, the Issuer shall deliver to the
Collateral Agent (i) a certificate executed by an Officer of each of the Company, Holdings and the
Issuer setting forth the information required pursuant to the Perfection Certificate or confirming
that there has been no change in such information since the date of such certificate or the date of
the most recent certificate delivered pursuant to this Section 3.03(c) and (ii) a certificate
executed by an Officer of each of the Company, Holdings and the Issuer certifying that all Uniform
Commercial Code financing statements (including fixture filings, as applicable) or other
appropriate filings, recordings or registrations, including all refilings, re-recordings and
re-registrations, containing a description of the Article 9 Collateral have been filed of record in
each governmental, municipal or other appropriate office in each jurisdiction identified pursuant
to clause (a) of this Section 3.03 to the extent necessary to protect and perfect the Security
Interest for a period of not less than 18 months after the date of such certificate (except as
noted therein with respect to any continuation statements to be filed within such period). Each
certificate delivered pursuant to this Section 3.03(c) shall identify in the format of Schedule V
all Intellectual Property of any Grantor in existence on the date thereof and not then listed on
such Schedules or previously so identified to the Collateral Agent.

          (d) Each Grantor shall, at its own expense, take any and all actions necessary to defend title
to the Article 9 Collateral against all persons and to defend the Security Interest of the
Collateral Agent in the Article 9 Collateral and the priority thereof against any Lien not
expressly permitted pursuant to Section 4.10 of the Indenture.

          (e) Each Grantor agrees, at its own expense, promptly to execute, acknowledge, deliver and
cause to be duly filed all such further instruments and documents and take all such actions as the
Collateral Agent may from time to time reasonably request to better assure, obtain, preserve,
protect and perfect the Security Interest and the rights and remedies created hereby, including the
payment of any fees and taxes required in connection with the execution and delivery of this
Agreement, the granting of the Security Interest and the filing of any financing or continuation
statements (including fixture filings) or other documents in connection herewith or therewith. If
any amount payable to any Grantor under or in connection with any of the Article 9 Collateral shall
be or become evidenced by any promissory note or other instrument, such note or instrument shall be
promptly pledged and delivered to the Collateral Agent, duly endorsed in a manner satisfactory to
the Collateral Agent.

          Without limiting the generality of the foregoing, each Grantor hereby authorizes the
Collateral Agent, with prior notice thereof to the Grantors, to supplement this Agreement by
supplementing Schedule V or adding additional schedules hereto to identify specifically any asset
or item of a Grantor that may, in the Collateral Agent’s reasonable judgment (in consultation with
counsel), constitute Copyrights, Licenses, Patents or Trademarks; provided that any Grantor shall
have the right, exercisable within

 

20

10 days after it has been notified by the Collateral Agent of the specific identification of such
Collateral, to advise the Collateral Agent in writing of any inaccuracy of the representations and
warranties made by such Grantor hereunder with respect to such Collateral. Each Grantor agrees that
it will use its best efforts to take such action as shall be necessary in order that all
representations and warranties hereunder shall be true and correct with respect to such Collateral
within 30 days after the date it has been notified by the Collateral Agent of the specific
identification of such Collateral.

          (f) The Collateral Agent and such persons as the Collateral Agent may designate shall have the
right at the applicable Grantor’s own cost and expense, to inspect the Article 9 Collateral, all
records related thereto (and to make extracts and copies from such records) and the premises upon
which any of the Article 9 Collateral is located, to discuss the applicable Grantor’s affairs with
the officers of such Grantor and its independent accountants and to verify the existence, validity,
amount, quality, quantity, value, condition and status of, or any other matter relating to, the
Article 9 Collateral, including, if an Event of Default has occurred and is continuing, in the case
of Accounts or other Article 9 Collateral in the possession of any third person, by contacting
Account Debtors or the third person possessing such Article 9 Collateral for the purpose of making
such a verification. The Collateral Agent shall have the absolute right to share any information it
gains from such inspection or verification with any Secured Party.

          (g) At its option, the Collateral Agent may discharge past due taxes, assessments, charges,
fees, Liens, security interests or other encumbrances at any time levied or placed on the Article 9
Collateral and not expressly permitted pursuant to Section 4.10 of the Indenture, and may pay for
the maintenance and preservation of the Article 9 Collateral to the extent any Grantor fails to do
so as required by the Indenture or this Agreement, and each Grantor jointly and severally agrees to
reimburse the Collateral Agent on demand for any payment made or any expense incurred by the
Collateral Agent pursuant to the foregoing authorization, and the Collateral Agent agrees to notify
the applicable Grantor within 10 Business Days following any such discharge or payment (provided
that the failure to give such notice shall not affect the Collateral Agent’s rights hereunder,
including it’s right to reimbursement for such expenses pursuant to this clause (g)); provided,
however, that nothing in this paragraph shall be interpreted as excusing any Grantor from the
performance of, or imposing any obligation on the Collateral Agent or any Secured Party to cure or
perform, any covenants or other promises of any Grantor with respect to taxes, assessments,
charges, fees, Liens, security interests or other encumbrances and maintenance as set forth herein
or in the other Notes Documents.

          (h) If at any time any Grantor shall take a security interest in any property of an Account
Debtor or any other person to secure payment and performance of an Account, such Grantor shall
promptly assign such security interest to the Collateral Agent for the ratable benefit of the
Secured Parties. Such assignment need not be filed of public record unless necessary to continue
the perfected status of the security interest against creditors of and transferees from the
Account Debtor or other person granting the security interest.

 

21

          (i) Each Grantor shall remain liable to observe and perform all the conditions and
obligations to be observed and performed by it under each contract, agreement or instrument
relating to the Article 9 Collateral, all in accordance with the terms and conditions thereof, and
each Grantor jointly and severally agrees to indemnify and hold harmless the Collateral Agent and
the Secured Parties from and against any and all liability for such performance.

          (j) No Grantor shall make or permit to be made an assignment, pledge or hypothecation of the
Article 9 Collateral or shall grant any other Lien in respect of the Article 9 Collateral or
permit any notice to be filed under the Assignment of Claims Act, except, in each case, as
expressly permitted by Section 4.10 of the Indenture. No Grantor shall make or permit to be made
any transfer of the Article 9 Collateral and each Grantor shall remain at all times in possession
or otherwise in control of the Article 9 Collateral owned by it, except as permitted by the
Indenture.

          (k) Except as specifically permitted under the Indenture, no Grantor will, without the
Collateral Agent’s prior written consent, grant any extension of the time of payment of any
Accounts included in the Article 9 Collateral, compromise, compound or settle the same for less
than the full amount thereof, release, wholly or partly, any person liable for the payment thereof
or allow any credit or discount whatsoever thereon, other than extensions, credits, discounts,
compromises, compoundings or settlements granted or made in the ordinary course of business and
consistent with its current practices and in accordance with such prudent and standard practice
used in industries that are the same as or similar to those in which such Grantor is engaged.

          (1) Each Grantor, at its own expense, shall maintain or cause to be maintained insurance
covering physical loss or damage to the Inventory and Equipment in accordance with the
requirements set forth in the Indenture. Each Grantor irrevocably makes, constitutes and appoints
the Collateral Agent (and all officers, employees or agents designated by the Collateral Agent) as
such Grantor’s true and lawful agent (and attorney-in-fact) for the purpose, upon the occurrence
and during the continuance of an Event of Default, of making, settling and adjusting claims in
respect of Article 9 Collateral under policies of insurance, endorsing the name of such Grantor on
any check, draft, instrument or other item of payment for the proceeds of such policies of
insurance and for making all determinations and decisions with respect thereto. In the event that
any Grantor at any time or times shall fail to obtain or maintain any of the policies of insurance
required hereby or under the Indenture or to pay any premium in whole or part relating thereto,
the Collateral Agent may, without waiving or releasing any obligation or liability of any Grantor
hereunder or any Default or Event of Default, in its sole discretion, obtain and maintain such
policies of insurance and pay such premium and take any other actions with respect thereto as the
Collateral Agent deems advisable. All sums disbursed by the Collateral Agent in connection with
this paragraph, including attorneys’ fees, court costs, expenses and other charges relating
thereto, shall be payable, upon demand, by the Grantors to the Collateral Agent and shall be
additional Obligations secured hereby.

 

22

          (m) Each Grantor shall maintain, in form and manner satisfactory to the Collateral Agent,
records of its Chattel Paper and its books, records and documents evidencing or pertaining
thereto.

          SECTION 3.04. Other Actions. In order to further insure the attachment, perfection and
priority of, and the ability of the Collateral Agent to enforce, the Security Interest in the
Article 9 Collateral, each Grantor agrees, in each case at such Grantor’s own expense, to take the
following actions with respect to the following Article 9 Collateral:

     (a) Instruments. If any Grantor shall at any time hold or acquire any Instruments, such
Grantor shall forthwith endorse, assign and deliver the same to the Collateral Agent,
accompanied by such undated instruments of endorsement, transfer or assignment duly executed
in blank as the Collateral Agent may from time to time specify.

     (b) Deposit Accounts. For each Deposit Account (other than Excluded Accounts) that any
Grantor at any time opens or maintains that has a balance in excess of $100,000, such
Grantor shall promptly notify the Collateral Agent thereof and, upon the Collateral Agent’s
request, either (i) cause the depositary bank to agree to comply at any time with
instructions from the Collateral Agent to such depositary bank directing the disposition of
funds from time to time credited to such Deposit Account, without further consent of such
Grantor or any other person, pursuant to an agreement in form and substance satisfactory to
the Collateral Agent, or (ii) arrange for the Collateral Agent to become the customer of the
depositary bank with respect to the Deposit Account, with the Grantor being permitted, only
with the consent of the Collateral Agent, to exercise rights to withdraw funds from such
Deposit Account. The Collateral Agent agrees with each Grantor that the Collateral Agent
shall not give any such instructions or withhold any withdrawal rights from any Grantor,
unless an Event of Default has occurred and is continuing, or, after giving effect to any
withdrawal, would occur. The provisions of this paragraph shall not apply to any Deposit
Account for which any Grantor, the depositary bank and the Collateral Agent have entered
into a cash collateral agreement specially negotiated among such Grantor, the depositary
bank and the Collateral Agent for the specific purpose set forth therein.

     (c) Investment Property. Except to the extent otherwise provided in Article II, if any
Grantor shall at any time hold or acquire any certificated securities, such Grantor shall
forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied by such
undated instruments of transfer or assignment duly executed in blank as the Collateral Agent
may from time to time specify. If any securities now or hereafter acquired by any Grantor
are uncertificated and are issued to such Grantor or its nominee directly by the issuer
thereof, such Grantor shall promptly notify the Collateral Agent thereof and, at the
Collateral Agent’s request and option, pursuant to an agreement in form and substance
satisfactory to the Collateral Agent, either (i) cause the issuer to agree to comply with
instructions from the Collateral Agent as to such securities,

 

23

without further consent of any Grantor or such nominee, or (ii) arrange for the Collateral Agent to
become the registered owner of the securities. If any securities, whether certificated or
uncertificated, or other Investment Property now or hereafter acquired by any Grantor are held by
such Grantor or its nominee through a Securities Intermediary or Commodity Intermediary, such
Grantor shall promptly notify the Collateral Agent thereof and, at the Collateral Agent’s request
and option, pursuant to an agreement in form and substance satisfactory to the Collateral Agent,
either (i) cause such Securities Intermediary or Commodity Intermediary, as the case may be, to
agree to comply with Entitlement Orders from the Collateral Agent to such Securities Intermediary
as to such securities or other Investment Property, or (as the case may be) to apply any value
distributed on account of any commodity contract as directed by the Collateral Agent to such
Commodity Intermediary, in each case without further consent of any Grantor or such nominee, or
(ii) in the case of Financial Assets (as governed by Article 8 of the New York UCC) or other
Investment Property held through a Securities Intermediary, arrange for the Collateral Agent to
become the Entitlement Holder with respect to such Investment Property, with the Grantor being
permitted, only with the consent of the Collateral Agent, to exercise rights to withdraw or
otherwise deal with such Investment Property. The Collateral Agent agrees with each Grantor that
the Collateral Agent shall not give any such Entitlement Orders or instructions or directions to
any such issuer, Securities Intermediary or Commodity Intermediary, and shall not withhold its
consent to the exercise of any withdrawal or dealing rights by any Grantor, unless an Event of
Default has occurred and is continuing, or, after giving effect to any such investment and
withdrawal rights would occur. The provisions of this paragraph shall not apply to any Financial
Assets credited to a Securities Account for which the Collateral Agent is the Securities
Intermediary.

     (d) Electronic Chattel Paper and Transferable Records. If any Grantor at any time holds or
acquires an interest in any Electronic Chattel Paper or any “transferable record”, as that term is
defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act,
or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction, such Grantor shall promptly notify the Collateral Agent thereof and, at the request
of the Collateral Agent, shall take such action as the Collateral Agent may request to vest in the
Collateral Agent control under New York UCC Section 9-105 of such Electronic Chattel Paper or
control under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act
or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in
such jurisdiction, of such transferable record. The Collateral Agent agrees with such Grantor that
the Collateral Agent will arrange, pursuant to procedures satisfactory to the Collateral Agent and
so long as such procedures will not result in the Collateral Agent’s loss of control, for the
Grantor to make alterations to the Electronic Chattel Paper or transferable record permitted under
UCC Section 9-105 or, as the case may be, Section 201 of the Federal Electronic Signatures in
Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a
party in control to allow without loss of control,

 

24

unless an Event of Default has occurred and is continuing or would occur after taking into
account any action by such Grantor with respect to such Electronic Chattel Paper or
transferable record.

     (e) Letter-of-Credit Rights. If any Grantor is at any time a beneficiary under a
letter of credit now or hereafter issued in favor of such Grantor, such Grantor shall
promptly notify the Collateral Agent thereof and, at the request and option of the
Collateral Agent, such Grantor shall, pursuant to an agreement in form and substance
satisfactory to the Collateral Agent, either (i) arrange for the issuer and any confirmer
of such letter of credit to consent to an assignment to the Collateral Agent of the
proceeds of any drawing under the letter of credit or (ii) arrange for the Collateral Agent
to become the transferee beneficiary of the letter of credit, with the Collateral Agent
agreeing, in each case, that the proceeds of any drawing under the letter of credit are to
be paid to the applicable Grantor unless an Event of Default has occurred or is continuing.

     (f) Commercial Tort Claims. If any Grantor shall at any time hold or acquire a
Commercial Tort Claim in an amount reasonably estimated to exceed $500,000, the Grantor
shall promptly notify the Collateral Agent thereof in a writing signed by such Grantor
including a summary description of such claim and grant to the Collateral Agent, for the
ratable benefit of the Secured Parties, in such writing a security interest therein and in
the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form
and substance satisfactory to the Collateral Agent.

          SECTION 3.05. Covenants Regarding Patent, Trademark and Copyright Collateral. (a) Each
Grantor agrees that it will not, and will not permit any of its licensees to, do any act, or omit
to do any act, whereby any Patent that is material to the conduct of such Grantor’s business may
become invalidated or dedicated to the public, and agrees that it shall continue to mark any
products covered by a Patent with the relevant patent number as necessary and sufficient to
establish and preserve its maximum rights under applicable patent laws.

          (b) Each Grantor (either itself or through its licensees or its sublicensees) will, for each
Trademark material to the conduct of such Grantor’s business, (i) maintain such Trademark in full
force free from any claim of abandonment or invalidity for non-use, (ii) maintain the quality of
products and services offered under such Trademark, (iii) display such Trademark with notice of
Federal or foreign registration to the extent necessary and sufficient to establish and preserve
its maximum rights under applicable law and (iv) not knowingly use or knowingly permit the use of
such Trademark in violation of any third party rights.

          (c) Each Grantor (either itself or through its licensees or sublicensees) will, for each work
covered by a material Copyright, continue to publish, reproduce, display, adopt and distribute the
work with appropriate copyright notice as necessary and sufficient to establish and preserve its
maximum rights under applicable copyright laws.

 

25

          (d) Each Grantor shall notify the Collateral Agent promptly if it knows or has reason to know
that any Patent, Trademark or Copyright material to the conduct of its business may become
abandoned, lost or dedicated to the public, or of any adverse determination or development
(including the institution of, or any such determination or development in, any proceeding in the
United States Patent and Trademark Office, United States Copyright Office or any court or similar
office of any country) regarding such Grantor’s ownership of any Patent, Trademark or Copyright,
its right to register the same, or its right to keep and maintain the same.

          (e) In no event shall any Grantor, either itself or through any agent, employee, licensee or
designee, file an application for any Patent, Trademark or Copyright (or for the registration of
any Trademark or Copyright) with the United States Patent and Trademark Office, United States
Copyright Office or any office or agency in any political subdivision of the United States or in
any other country or any political subdivision thereof, unless it promptly (and in any event within
10 days after any such filing) notifies the Collateral Agent, and, upon request of the Collateral
Agent, executes and delivers any and all agreements, instruments, documents and papers as the
Collateral Agent may request to evidence the Security Interest in such Patent, Trademark or
Copyright, and each Grantor hereby appoints the Collateral Agent as its attorney-in-fact to execute
and file such writings for the foregoing purposes, all acts of such attorney being hereby ratified
and confirmed; such power, being coupled with an interest, is irrevocable.

          (f) Each Grantor will take all reasonably necessary steps that are consistent with the
practice in any proceeding before the United States Patent and Trademark Office, United States
Copyright Office or any office or agency in any political subdivision of the United States or in
any other country or any political subdivision thereof, to maintain and pursue each material
application relating to the Patents, Trademarks and/or Copyrights (and to obtain the relevant grant
or registration) and to maintain each issued Patent and each registration of the Trademarks and
Copyrights that is material to the conduct of any Grantor’s business, including timely filings of
applications for renewal, affidavits of use, affidavits of incontestability and payment of
maintenance fees, and, if consistent with good business judgment, to initiate opposition,
interference and cancellation proceedings against third parties.

          (g) In the event that any Grantor has actual knowledge that any Article 9 Collateral
consisting of a Patent, Trademark or Copyright material to the conduct of any Grantor’s business
has been or is about to be infringed, misappropriated or diluted by a third person, such Grantor
promptly shall notify the Collateral Agent and shall, if consistent with good business judgment,
promptly sue for infringement, misappropriation or dilution and to recover any and all damages for
such infringement, misappropriation or dilution, and take such other actions as are appropriate
under the circumstances to protect such Article 9 Collateral.

          (h) Upon the occurrence and during the continuance of an Event of Default, each Grantor shall
use its best efforts to obtain all requisite consents or approvals by the licensor of each
Copyright License, Patent License or Trademark License, and

 

26

each other material License, to effect the assignment of all such Grantor’s right, title and
interest thereunder to the Collateral Agent, for the ratable benefit of the Secured Parties, or its
designee.

ARTICLE IV

Remedies

          SECTION 4.01. Remedies Upon Default. Upon the occurrence and during the continuance of an
Event of Default, each Grantor agrees to deliver each item of Collateral to the Collateral Agent
on demand, and it is agreed that the Collateral Agent shall have the right, whether or not at the
direction of the Trustee or Holders of a majority in principal amount of the Notes, to take any of
or all the following actions at the same or different times: (a) with respect to any Article 9
Collateral consisting of Intellectual Property, on demand, to cause the Security Interest to
become an assignment, transfer and conveyance of any of or all such Article 9 Collateral by the
applicable Grantor to the Collateral Agent, or to license or sublicense, whether general, special
or otherwise, and whether on an exclusive or nonexclusive basis, any such Article 9 Collateral
throughout the world on such terms and conditions and in such manner as the Collateral Agent shall
determine (other than in violation of any then-existing licensing arrangements to the extent that
waivers cannot be obtained), and (b) with or without legal process and with or without prior
notice or demand for performance, to take possession of the Article 9 Collateral and without
liability for trespass to enter any premises where the Article 9 Collateral may be located for the
purpose of taking possession of or removing the Article 9 Collateral and, generally, to exercise
any and all rights afforded to a secured party under the Uniform Commercial Code or other
applicable law. Without limiting the generality of the foregoing, each Grantor agrees that the
Collateral Agent shall have the right, subject to the mandatory requirements of applicable law, to
sell or otherwise dispose of all or any part of the Collateral at a public or private sale or at
any broker’s board or on any securities exchange, for cash, upon credit or for future delivery as
the Collateral Agent shall deem appropriate. The Collateral Agent shall be authorized at any such
sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers to
persons who will represent and agree that they are purchasing the Collateral for their own account
for investment and not with a view to the distribution or sale thereof, and upon consummation of
any such sale the Collateral Agent shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold. Each such purchaser at any such sale shall
hold the property sold absolutely, free from any claim or right on the part of any Grantor, and
each Grantor hereby waives (to the extent permitted by law) all rights of redemption, stay and
appraisal which such Grantor now has or may at any time in the future have under any rule of law
or statute now existing or hereafter enacted.

          The Collateral Agent shall give each applicable Grantor 10 days’ written notice (which each
Grantor agrees is reasonable notice within the meaning of Section 9-611 of the New York UCC or its
equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale of
Collateral. Such notice, in the case of a public sale,

 

27

shall state the time and place for such sale and, in the case of a sale at a broker’s board or on a
securities exchange, shall state the board or exchange at which such sale is to be made and the day
on which the Collateral, or portion thereof, will first be offered for sale at such board or
exchange. Any such public sale shall be held at such time or times within ordinary business hours
and at such place or places as the Collateral Agent may fix and state in the notice (if any) of
such sale. At any such sale, the Collateral, or portion thereof, to be sold may be sold in one lot
as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute
discretion) determine. The Collateral Agent shall not be obligated to make any sale of any
Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such
Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn
any public or private sale or cause the same to be adjourned from time to time by announcement at
the time and place fixed for sale, and such sale may, without further notice, be made at the time
and place to which the same was so adjourned. In case any sale of all or any part of the Collateral
is made on credit or for future delivery, the Collateral so sold may be retained by the Collateral
Agent until the sale price is paid by the purchaser or purchasers thereof, but the Collateral Agent
shall not incur any liability in case any such purchaser or purchasers shall fail to take up and
pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again
upon like notice. At any public (or, to the extent permitted by law, private) sale made pursuant to
this Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by
applicable law) from any right of redemption, stay, valuation or appraisal on the part of any
Grantor (all said rights being also hereby waived and released to the extent permitted by
applicable law), the Collateral or any part thereof offered for sale and may make payment on
account thereof by using any claim then due and payable to such Secured Party from any Grantor as a
credit against the purchase price, and such Secured Party may, upon compliance with the terms of
sale, hold, retain and dispose of such property without further accountability to any Grantor
therefor. For purposes hereof, a written agreement to purchase the Collateral or any portion
thereof shall be treated as a sale thereof; the Collateral Agent shall be free to carry out such
sale pursuant to such agreement and no Grantor shall be entitled to the return of the Collateral or
any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall
have entered into such an agreement all Events of Default shall have been remedied and the
Obligations paid in full. As an alternative to exercising the power of sale herein conferred upon
it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose this
Agreement and to sell the Collateral or any portion thereof pursuant to a judgment or decree of a
court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed
receiver. Any sale pursuant to the provisions of this Section 4.01 shall be deemed to conform to
the commercially reasonable standards as provided in Section 9-610(b) of the New York UCC or its
equivalent in other jurisdictions.

          SECTION 4.02. Application of Proceeds. The Collateral Agent shall apply the proceeds of any
collection, sale, foreclosure or other realization upon any Collateral, including any Collateral
consisting of cash, as follows:

     FIRST, to the payment of all costs and expenses incurred by, and indemnities then
owing to, the Collateral Agent or the Trustee (if not the

 

28

Collateral Agent) (in their respective capacities as such hereunder or under any
other Notes Document) in connection with such collection, sale, foreclosure or realization
or otherwise in connection with this Agreement, any other Notes Document or any of the
Notes Obligations, including all court costs and the fees and expenses of its agents and
legal counsel, the repayment of all advances made by the Collateral Agent or the Trustee
(if not the Collateral Agent) hereunder or under any other Notes Document on behalf of any
Grantor and any other costs or expenses incurred in connection with the exercise of any
right or remedy hereunder or under any other Notes Document;

     SECOND, to the payment in full of all other Notes Obligations (the amounts so applied
to be distributed among the Secured Parties pro rata in accordance with the amounts of the
Notes Obligations owed to them on the date of any such distribution); and

     THIRD, to the extent of the balance of such proceeds after application in accordance
with the foregoing, to the Grantors, their successors or assigns, or as a court of
competent jurisdiction may otherwise direct.

The Collateral Agent shall have absolute discretion as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the
Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser
or purchasers shall not be obligated to see to the application of any part of the purchase money
paid over to the Collateral Agent or such officer or be answerable in any way for the
misapplication thereof.

          SECTION 4.03. Grant of License to Use Intellectual Property. For the purpose of enabling the
Collateral Agent to exercise rights and remedies under this Agreement at such time as the
Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor
hereby grants (other than in violation of any then-existing licensing arrangements to the extent
that waivers cannot be obtained) to the Collateral Agent an irrevocable, nonexclusive license
(exercisable without payment of royalty or other compensation to the Grantors), to use, license or
sublicense any of the Article 9 Collateral consisting of Intellectual Property now owned or
hereafter acquired by such Grantor, and wherever the same may be located, and including in such
license access to all media in which any of the licensed items may be recorded or stored and to
all computer software and programs used for the compilation or printout thereof. The use of such
license by the Collateral Agent may be exercised, at the option of the Collateral Agent, only upon
the occurrence and during the continuation of an Event of Default; provided, however, that any
license, sublicense or other transaction entered into by the Collateral Agent after the occurrence
of an Event of Default shall be binding upon each Grantor notwithstanding any subsequent cure of
an Event of Default.

          SECTION 4.04. 
Securities Act, Etc. In view of the position of the Grantors in relation to the
Pledged Collateral, or because of other current or future

 

29

circumstances, a question may arise under the U.S. Securities Act of 1933, as now or hereafter in
effect, or any similar statute hereafter enacted analogous in purpose or effect (such Act and any
such similar statute as from time to time in effect being called the
“Federal Securities Laws”)
with respect to any disposition of the Pledged Collateral permitted hereunder. Each Grantor
understands that compliance with the Federal Securities Laws might very strictly limit the course
of conduct of the Collateral Agent if the Collateral Agent were to attempt to dispose of all or any
part of the Pledged Collateral, and might also limit the extent to which or the manner in which any
subsequent transferee of any Pledged Collateral could dispose of the same. Similarly, there may be
other legal restrictions or limitations affecting the Collateral Agent in any attempt to dispose of
all or part of the Pledged Collateral under applicable “blue sky” or other state securities laws or
similar laws analogous in purpose or effect. Each Grantor recognizes that in light of such
restrictions and limitations the Collateral Agent may, with respect to any sale of the Pledged
Collateral, limit the purchasers to those who will agree, among other things, to acquire such
Pledged Collateral for their own account, for investment, and not with a view to the distribution
or resale thereof. Each Grantor acknowledges and agrees that in light of such restrictions and
limitations, the Collateral Agent, in its sole and absolute discretion (a) may proceed to make such
a sale whether or not a registration statement for the purpose of registering such Pledged
Collateral or part thereof shall have been filed under the Federal Securities Laws and (b) may
approach and negotiate with a limited number of potential purchasers (including a single potential
purchaser) to effect such sale. Each Grantor acknowledges and agrees that any such sale might
result in prices and other terms less favorable to the seller than if such sale were a public sale
without such restrictions. In the event of any such sale, the Collateral Agent shall incur no
responsibility or liability for selling all or any part of the Pledged Collateral at a price that
the Collateral Agent, in its sole and absolute discretion, may in good faith deem reasonable under
the circumstances, notwithstanding the possibility that a substantially higher price might have
been realized if the sale were deferred until after registration as aforesaid or if more than a
limited number of purchasers (or a single purchaser) were approached. The provisions of this
Section 4.04 will apply notwithstanding the existence of a public or private market upon which the
quotations or sales prices may exceed substantially the price at which the Collateral Agent sells.

          SECTION 4.05. Registration. Each Grantor agrees that, upon the occurrence and during the
continuance of an Event of Default, if for any reason the Collateral Agent desires to sell any of
the Pledged Collateral at a public sale, it will, at any time and from time to time, upon the
written request of the Collateral Agent, use its best efforts to take or to cause the issuer of
such Pledged Collateral to take such action and prepare, distribute and/or file such documents, as
are required or advisable in the reasonable opinion of counsel for the Collateral Agent to permit
the public sale of such Pledged Collateral. Each Grantor further agrees to indemnify, defend and
hold harmless the Collateral Agent, each other Secured Party, any underwriter and their respective
affiliates and their respective officers, directors, affiliates and controlling persons from and
against all loss, liability, expenses, costs of counsel (including reasonable fees and expenses to
the Collateral Agent of legal counsel), and claims (including the costs of investigation) that
they may incur insofar as such loss, liability, expense or claim arises out of or is based upon
any alleged untrue statement of a material fact contained in any

 

30

prospectus (or any amendment or supplement thereto) or in any notification or offering circular, or
arises out of or is based upon any alleged omission to state a material fact required to be stated
therein or necessary to make the statements in any thereof not misleading, except insofar as the
same may have been caused by any untrue statement or omission based upon information furnished in
writing to such Grantor or the issuer of such Pledged Collateral by the Collateral Agent or any
other Secured Party expressly for use therein. Each Grantor further agrees, upon such written
request referred to above, to use its best efforts to qualify, file or register, or cause the
issuer of such Pledged Collateral to qualify, file or register, any of the Pledged Collateral under
the Blue Sky or other securities laws of such states as may be requested by the Collateral Agent
and keep effective, or cause to be kept effective, all such qualifications, filings or
registrations. Each Grantor will bear all costs and expenses of carrying out its obligations under
this Section 4.05. Each Grantor acknowledges that there is no adequate remedy at law for failure by
it to comply with the provisions of this Section 4.05 and that such failure would not be adequately
compensable in damages, and therefore agrees that its agreements contained in this Section 4.05 may
be specifically enforced.

          SECTION 4.06. Disposition of Collateral. In the event of a foreclosure by the Collateral
Agent on any of the Collateral pursuant to a public or private sale or other disposition, the
Collateral Agent or any Secured Party may be the purchaser or licensor of any or all of such
Collateral at any such sale or other disposition, and the Collateral Agent, as agent for and
representative of the Secured Parties shall be entitled, for the purpose of bidding and making
settlement or payment of the purchase price for all or any portion of the Collateral sold at any
such public sale, to use and apply any of the Notes Obligations as a credit on account of the
purchase price for any Collateral payable by the Collateral Agent on behalf of the Secured Parties
at such sale or other disposition. Each Secured Party, whether or not a party hereto, will be
deemed, by its acceptance of the benefits of the Collateral and of the Guarantees of the Notes
Obligations provided under the Notes Documents, to have agreed to the foregoing provisions.

ARTICLE V

Indemnity, Subrogation and Subordination

          SECTION 5.01. Indemnity and Subrogation. In addition to all such rights of indemnity and
subrogation as the Grantors may have under applicable law (but subject to Section 5.03), the
Issuer agrees that (a) in the event a payment shall be made under this Agreement by any Subsidiary
Grantor, the Issuer shall indemnify such Subsidiary Grantor for the full amount of such payment
and such Subsidiary Grantor shall be subrogated to the rights of the person to whom such payment
shall have been made to the extent of such payment and (b) in the event any assets of any
Subsidiary Grantor shall be sold pursuant to this Agreement or any other Security Document to
satisfy in whole or in part a claim of any Secured Party, the Issuer shall indemnify such
Subsidiary Grantor in an amount equal to the greater of the book value or the fair market value of
the assets so sold.

 

31

          SECTION 5.02. Contribution and Subrogation. Each Subsidiary Grantor (a “Contributing
Subsidiary Grantor”) agrees (subject to Section 5.03) that, in the event a payment shall be made by
any other Subsidiary Grantor hereunder in respect of any Notes Obligation, or assets of any other
Subsidiary Grantor shall be sold pursuant to any Security Document to satisfy any Notes Obligation
owed to any Secured Party, and such other Subsidiary Grantor (the “Claiming Subsidiary Grantor”)
shall not have been fully indemnified by the Issuer as provided in Section 5.01, the Contributing
Subsidiary Grantor shall indemnify the Claiming Subsidiary Grantor in an amount equal to (i) the
amount of such payment or (ii) the greater of the book value or the fair market value of such
assets, as the case may be, in each case multiplied by a fraction of which the numerator shall be
the net worth of the Contributing Subsidiary Grantor on the date hereof and the denominator shall
be the aggregate net worth of all the Subsidiary Grantors on the date hereof (or, in the case of
any such Subsidiary Grantor becoming a party hereto pursuant to Section 6.16, the date of the
supplement hereto executed and delivered by such Subsidiary Grantor). Any Contributing Subsidiary
Grantor making any payment to a Claiming Subsidiary Grantor pursuant to this Section 5.02 shall
(subject to Section 5.03) be subrogated to the rights of such Claiming Subsidiary Grantor under
Section 5.01 to the extent of such payment.

          SECTION
5.03. Subordination. (a) Notwithstanding any provision of this Agreement to the
contrary, all rights of the Subsidiary Grantors under Sections 5.01 and 5.02 and all other rights
of the Subsidiary Grantors of indemnity, contribution or subrogation under applicable law or
otherwise shall be fully subordinated to the indefeasible payment in full in cash of the Notes
Obligations. No failure on the part of the Issuer or any other Grantor to make the payments
required by Sections 5.01 and 5.02 (or any other payments required under applicable law or
otherwise) shall in any respect limit the obligations and liabilities of any Subsidiary Grantor
with respect to its obligations hereunder, and each Subsidiary Grantor shall remain liable for the
full amount of its obligations hereunder.

          (b) Each Grantor hereby agrees that all Indebtedness and other monetary obligations owed by
it to, or to it by, any other Grantor or any other Subsidiary shall be fully subordinated to the
indefeasible payment in full in cash of the Notes Obligations.

ARTICLE VI

Miscellaneous

          SECTION 6.01. Notices. All communications and notices hereunder shall (except as otherwise
expressly permitted herein) be in writing and given as provided in Section 12.02 of the Indenture.
All communications and notices hereunder to any Grantor shall be given to it in care of the Issuer
as provided in Section 12.02 of the Indenture.

          SECTION 6.02. Security Interest Absolute. All rights of the Collateral Agent hereunder, the
Security Interest, the grant of a first-priority security interest in the

 

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Pledged Collateral and all obligations of each Grantor hereunder shall be absolute and
unconditional irrespective of (a) any lack of validity or enforceability of the Indenture, any
other Notes Document, any agreement with respect to any of the Notes Obligations or any other
agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or
place of payment of, or in any other term of, all or any of the Notes, the Notes Obligations, or
any other amendment or waiver of or any consent to any departure from the Indenture, any other
Notes Document or any other agreement or instrument relating to the foregoing, (c) any exchange,
release or non-perfection of any Lien on other collateral, or any release or amendment or waiver of
or consent under or departure from any guarantee, securing or guaranteeing all or any of the Notes
Obligations, or (d) any other circumstance that might otherwise constitute a defense available to,
or a discharge of, any Grantor in respect of the Notes Obligations or this Agreement.

          SECTION 6.03. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Grantors in the Notes Documents and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this Agreement or any other
Notes Document shall be considered to have been relied upon by the Secured Parties and shall
survive the execution and delivery of the Notes Documents and the issuance of the Notes,
regardless of any investigation made by any Secured Party or on its behalf and notwithstanding
that the Collateral Agent or any other Secured Party may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any Note is issued pursuant to the
Indenture, and shall continue in full force and effect as long as the principal of or any accrued
interest on any Note or any other amount payable under any Notes Document is outstanding and
unpaid.

          SECTION 6.04. Binding Effect; Several Agreement. This Agreement shall become effective as to
any Grantor when a counterpart hereof executed on behalf of such Grantor shall have been delivered
to the Collateral Agent and a counterpart hereof shall have been executed on behalf of the
Collateral Agent, and thereafter shall be binding upon such Grantor and the Collateral Agent and
their respective permitted successors and assigns, and shall inure to the benefit of such Grantor,
the Collateral Agent and the other Secured Parties and their respective successors and assigns,
except that no Grantor shall have the right to assign or transfer its rights or obligations
hereunder or any interest herein or in the Collateral (and any such assignment or transfer shall
be void) except as expressly contemplated or permitted by this Agreement or the Indenture. This
Agreement shall be construed as a separate agreement with respect to each Grantor and may be
amended, modified, supplemented, waived or released with respect to any Grantor without the
approval of any other Grantor and without affecting the obligations of any other Grantor
hereunder.

          SECTION 6.05. Successors and Assigns. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors and assigns of
such party; and all covenants, promises and agreements by or on behalf of any Grantor or the
Collateral Agent that are contained in

 

33

this Agreement shall bind and inure to the benefit of their respective successors and assigns.

          SECTION 6.06. Collateral Agent’s Fees and Expenses; Indemnification. (a) Each Grantor jointly
and severally agrees to pay all reasonable out-of-pocket expenses incurred by the Collateral
Agent, including the reasonable fees, charges and disbursements of its counsel, in connection with
(i) the preparation, execution, delivery and administration of this Agreement and any other
Security Document, (ii) the custody and preservation of, or the sale of, collection from or other
realization upon any of the Collateral, (iii) the exercise, enforcement or protection of any of
the rights of the Collateral Agent hereunder or under any Security Document or (iv) the failure of
any Grantor to perform or observe any of the provisions hereof.

          (b) Without limitation of its indemnification obligations under the other Notes Documents,
each Grantor jointly and severally agrees to indemnify the Collateral Agent and the other Secured
Parties against, and hold each Secured Party harmless from, any and all losses, claims, damages,
liabilities, and related expenses, including the reasonable fees, charges and disbursements of any
counsel for any Secured Party, incurred by or asserted against any Secured Party arising out of, in
any way connected with, or as a result of, the execution, delivery or performance of this Agreement
or any agreement or instrument contemplated hereby or any claim, litigation, investigation or
proceeding relating to any of the foregoing or to the Collateral, regardless of whether any Secured
Party is a party thereto or whether initiated by a third party or by a Grantor or any Affiliate
thereof; provided, however, that such indemnity shall not, as to any Secured Party, be available to
the extent that such losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or wilful misconduct of such Secured Party. To the extent permitted by applicable law,
no Grantor shall assert, and each Grantor hereby waives any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this Agreement any other
Notes Document, or any agreement or instrument contemplated hereby, the Transactions, any Note or
the use of proceeds thereof.

          (c) Any such amounts payable as provided hereunder shall be additional Notes Obligations
secured hereby and by the other Security Documents. The provisions of this Section 6.06 shall
remain operative and in full force and effect regardless of the termination of this Agreement or
any other Notes Document, the consummation of the transactions contemplated hereby, the repayment
of any of the Notes Obligations, the invalidity or unenforceability of any term or provision of
this Agreement or any other Notes Document, or any investigation made by or on behalf of the
Collateral Agent or any other Secured Party. All amounts due under this Section 6.06 shall be
payable on written demand therefor and shall bear interest, on and from the date of demand, at the
rate specified in Section 2.14 of the Indenture.

          SECTION 6.07. Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby appoints the
Collateral Agent as the attorney-in-fact of such Grantor for

 

34

the purpose of carrying out the provisions of this Agreement and taking any action and executing
any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes
hereof, which appointment is irrevocable and coupled with an interest. Without limiting the
generality of the foregoing, the Collateral Agent shall have the right, upon the occurrence and
during the continuance of an Event of Default, with full power of substitution either in the
Collateral Agent’s name or in the name of such Grantor (a) to receive, endorse, assign and/or
deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment
relating to the Collateral or any part thereof, (b) to demand, collect, receive payment of, give
receipt for and give discharges and releases of all or any of the Collateral, (c) to sign the name
of any Grantor on any invoice or bill of lading relating to any of the Collateral, (d) to send
verifications of Accounts Receivable to any Account Debtor, (e) to commence and prosecute any and
all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to
collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of
any Collateral, (f) to settle, compromise, compound, adjust or defend any actions, suits or
proceedings relating to all or any of the Collateral, (g) to notify, or to require any Grantor to
notify, Account Debtors to make payment directly to the Collateral Agent, and (h) to use, sell,
assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of
the Collateral (including completing any stock powers or other instruments of transfer delivered
pursuant to Section 2.02(c)), and to do all other acts and things necessary to carry out the
purposes of this Agreement in accordance with its terms, as fully and completely as though the
Collateral Agent were the absolute owner of the Collateral for all purposes; provided, however,
that nothing herein contained shall be construed as requiring or obligating the Collateral Agent to
make any commitment or to make any inquiry as to the nature or sufficiency of any payment received
by the Collateral Agent, or to present or file any claim or notice, or to take any action with
respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof
or any property covered thereby. The Collateral Agent and the other Secured Parties shall be
accountable only for amounts actually received as a result of the exercise of the powers granted to
them herein, and neither they nor their officers, directors, employees or agents shall be
responsible to any Grantor for any act or failure to act hereunder, except for their own gross
negligence or wilful misconduct, as determined by a court of competent jurisdiction in a final and
nonappealable judgment. Upon termination of this Agreement, the Collateral Agent’s rights as
attorney-in-fact shall terminate.

          SECTION 6.08. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          SECTION
6.09. Waivers; Amendment. (a) No failure or delay by the Collateral Agent or any
other Secured Party in exercising any right or power hereunder or under any other Notes Document
shall operate as a waiver hereof or thereof, nor shall any single or partial exercise of any such
right or power, or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Collateral Agent and the other Secured Parties hereunder and under the
other Notes

 

35

Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise
have. No waiver of any provision of any Loan Document or consent to any departure by any Grantor
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of
this Section 6.09, and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. No notice or demand on any Grantor in any case shall entitle
any Grantor any other or further notice or demand in similar or other circumstances.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Collateral Agent and the
Grantor or Grantors with respect to which such waiver, amendment or modification is to apply,
subject to any consent required in accordance with Section 9.02 of the Indenture.

          SECTION 6.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
OTHER NOTES DOCUMENTS (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER NOTES DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.10.

          SECTION 6.11. Severability. In the event any one or more of the provisions contained in this
Agreement or in any other Notes Document should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein
and therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction). The parties shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

          SECTION 6.12. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become effective as
provided in Section 6.04. Delivery of an executed signature page to this Agreement by facsimile
transmission or electronic means shall be as effective as delivery of a manually signed
counterpart of this Agreement.

 

36

          SECTION 6.13. Headings. Article and Section headings and the Table of Contents used herein are
for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

          SECTION
6.14. Jurisdiction; Consent to Service of Process. (a) Each party hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of any New York State court or Federal court of the United States of America, sitting
in New York City, and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Agreement or any other Notes Document, or for recognition or
enforcement of any judgment, and each party hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each party hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement or any other Notes Document shall affect any right that the Collateral Agent or any
other Secured Party may otherwise have to bring any action or proceeding relating to this
Agreement or any other Notes Document against any Grantor or its properties in the courts of any
jurisdiction.

          (b) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or any
other Notes Document in any court referred to in paragraph (a) of this Section 6.14. Each party
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          (c) Each party hereto hereby irrevocably consents to service of process in the manner provided
for notices in Section 6.01. Nothing in this Agreement or any other Notes Document will affect the
right of the Collateral Agent to serve process in any other manner permitted by law.

          SECTION 6.15. Termination or Release. (a) This Agreement, the Security Interest, the pledge
of the Pledged Collateral and all other security interests granted hereby shall terminate when all
the Notes Obligations (other than contingent indemnification obligations) have been indefeasibly
paid in full or upon discharge of the Indenture or defeasance of the Notes as set forth in
Sections 8.02 and 8.03 of the Indenture.

          (b) A Subsidiary Grantor shall automatically be released from its obligations hereunder and
the Security Interest in the Collateral of such Subsidiary Grantor shall be automatically
released upon the release of such Subsidiary Grantor’s Note Guarantee in accordance with the
terms of the Indenture.

 

37

          (c) Upon any sale or other transfer by any Grantor of any Collateral that is permitted under
the Indenture to any person that is not the Issuer or a Grantor or upon the effectiveness of any
written consent to the release of the Security Interest granted hereby in any Collateral pursuant
to Section 9.02 of the Indenture, the Security Interest in such Collateral shall be automatically
released.

          (d) In connection with any termination or release pursuant to paragraph (a), (b) or (c) above,
the Collateral Agent shall promptly execute and deliver to any Grantor, at such Grantor’s expense,
all Uniform Commercial Code termination statements and similar documents that such Grantor shall
reasonably request to evidence such termination or release. Any execution and delivery of documents
pursuant to this Section 6.15 shall be without recourse to or representation or warranty by the
Collateral Agent or any Secured Party. Without limiting the provisions of Section 6.06, the Issuer
shall reimburse the Collateral Agent upon demand for all costs and out of pocket expenses,
including the fees, charges and expenses of counsel, incurred by it in connection with any action
contemplated by this Section 6.15.

          SECTION 6.16. Additional Subsidiaries. Any Subsidiary that is required to become a Subsidiary
Grantor pursuant to Section 4.11 of the Indenture shall enter into this Agreement as a Subsidiary
Grantor. Upon execution and delivery by the Collateral Agent and such Subsidiary of a supplement in
the form of Exhibit A hereto, such Subsidiary shall become a Grantor hereunder with the same force
and effect as if originally named as a Grantor herein. The execution and delivery of any such
instrument shall not require the consent of any other Grantor hereunder. The rights and obligations
of each Grantor hereunder shall remain in full force and effect notwithstanding the addition of any
new Grantor as a party to this Agreement.

          SECTION 6.17. Maximum Liability. Notwithstanding anything to the contrary in this Agreement
or any other Notes Document, the maximum liability of each Grantor under this Agreement and under
any other Notes Document shall not exceed an amount equal to the largest amount that would not
render such Grantor’s obligations hereunder and under any other Note Document subject to avoidance
under Section 548 of the Bankruptcy Code of the United States or any equivalent provision of any
other Debtor Relief Law.

          SECTION 6.18. Post-Closing Covenants. The Issuer covenants and agrees to the following:

     (a) As promptly as possible, but in any event, in the case of Pledged Stock, within 10
calendar days after the date hereof, and, in the case of Pledged Debt Securities, within 15
calendar days after the date hereof, the Issuer will or will cause each applicable Grantor to
deliver to the Collateral Agent stock certificates, promissory notes, instruments or other
documents representing or evidencing Pledged Securities that represent any change of name of any
Grantor (as identified on Schedule II attached hereto) and each stock certificate, promissory
note, instrument or other document shall be accompanied by a corresponding undated stock powers
duly executed in blank.

 

38

     (b) As promptly as possible, but in any event within 60 calendar days after the date hereof
(or such later date as is reasonable, if and only if the delay is caused by the relevant
governmental authority or public registry of property in Mexico), the Issuer shall file and record
the relevant terminations and take all actions as are necessary to terminate and release the
first-priority and second-priority mortgages granted by Torres Mazatlán, S.A. de C.V, as mortgagor,
by public deed number 60,849, on the property of Mazatlán, State of Sinaloa under Book DCCXXXVIII,
Section II, number 13.

     (c) As promptly as possible, but in any event within 60 calendar days after the date hereof,
the Issuer shall or shall cause the applicable Grantor to enter into (i) a control agreement (in
form and substance satisfactory to the Collateral Agent) relating to the Deposit Account maintained
by Diamond Resorts Centralized Services Company at Wells Fargo Bank, National Association (ii) a
control agreement (in form and substance satisfactory to the Collateral Agent) relating to the
Deposit Account maintained by Diamond Resorts Centralized Services Company at Wachovia Bank,
National Association and (ii) a control agreement (in form and substance satisfactory to the
Collateral Agent) relating to the Securities Account maintained by Diamond Resorts Centralized
Services Company at Wells Fargo Funds Trust.

ARTICLE VII

Concerning the Collateral Agent

          SECTION 7.01. Confirmation of Appointment. Each of the Secured Parties, by acceptance of the
benefits conferred by this Agreement, hereby confirms its appointment of Wells Fargo Bank,
National Association to act, and Wells Fargo Bank, National Association hereby agrees to act, as
the Collateral Agent for the Secured Parties pursuant to the terms of this Agreement and the other
Security Documents, and authorizes the Collateral Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Collateral Agent by the terms of this Agreement and
the other Security Documents, together with such actions and powers as are reasonably incidental
thereto. Without limiting the generality of the foregoing, the Collateral Agent is hereby
expressly authorized to execute any and all documents (including releases) with respect to the
Collateral, and the rights of the Secured Parties with respect thereto, as contemplated by and in
accordance with the provisions of this Agreement and the other Security Documents.

          SECTION 7.02. Duties or Obligations. The Collateral Agent shall not have any duties or
obligations except those expressly set forth in the Notes Documents. Without limiting the
generality of the foregoing, (i) the Collateral Agent shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is continuing and (ii) the
Collateral Agent shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated by the Notes
Documents that the Collateral Agent is required to exercise in writing by the Trustee (or by the
Holders of at least a majority in aggregate principal amount of the Notes). The Collateral Agent
shall take such actions

 

39

and exercise such remedies hereunder and under the other Notes Documents as it is from time to time
directed, in writing, to take or exercise by the Trustee, provided that the Collateral Agent shall
not be obligated to take any such action that adversely affects the rights, duties, liabilities or
immunities of the Collateral Agent. The Collateral Agent shall be entitled to rely conclusively,
without any independent investigation whatsoever, and shall be fully protected in so relying, on
any direction, instruction or consent of the Trustee, if such direction, instruction or consent is
purported to be given on behalf of the Trustee. The Collateral Agent shall not be liable for any
action taken or not taken by it with the consent or at the request of the Trustee (or the Holders
of at least a majority in aggregate principal amount of the Notes) or in the absence of its own
gross negligence or willful misconduct, as determined by a court of competent jurisdiction in a
final and nonappealable judgment. In no event shall the Collateral Agent be liable, directly or
indirectly, for any special, indirect or consequential damages, even if the Collateral Agent has
been advised of the possibility of such damages.

          SECTION
7.03. Reliance; Sub-Agents. (a) The Collateral Agent shall be entitled to rely upon,
and shall not incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine and to have been
signed or sent by the proper person. The Collateral Agent may also rely upon any statement made to
it orally or by telephone and believed by it to have been made by the proper person, and shall not
incur any liability for relying thereon. The Collateral Agent may consult with legal counsel (who
may be counsel for the Issuer), independent accountants and other experts selected by it, and
shall not be liable for any action taken or not taken by it in accordance with the advice of any
such counsel, accountants or experts.

          (b) The Collateral Agent may perform any and all its duties and exercise its rights and
powers by or through any one or more sub-agents appointed by the Collateral Agent. The Collateral
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their officers, directors, employees, agents and representatives. The exculpatory
provisions of the preceding paragraphs shall apply to any such sub-agent and to the officers,
directors, employees, agents and representatives of the Collateral Agent and any such sub-agent.

          SECTION 7.04. Resignation of the Collateral Agent. Subject to the appointment and acceptance
of a successor Collateral Agent as provided in this paragraph, the Collateral Agent may resign at
any time by notifying the Issuer and the Trustee. Upon any such resignation, the Trustee or the
Holders of at least a majority in aggregate principal amount of the Notes shall have the right to
appoint a successor. If no successor shall have been so appointed by the Trustee or such Holders
and shall have accepted such appointment within 60 days after the retiring Collateral Agent gives
notice of its resignation, then the retiring Collateral Agent may, at the expense of the Grantors,
petition a court of competent jurisdiction to appoint a successor Collateral Agent, which shall be
a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance
of its appointment as the Collateral Agent by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent,
and the retiring Collateral Agent shall be

 

40

discharged from its duties and obligations hereunder and under the other Notes Documents. Such
appointment and designation shall be full evidence of the right and authority of such successor
Collateral Agent to act as Collateral Agent hereunder and under the other Notes Documents, and all
Collateral, power, trusts, duties, documents, rights and authority of the retiring Collateral Agent
shall rest in the successor Collateral Agent, without any further deed or conveyance. The retiring
Collateral Agent shall, upon request of the Trustee or the successor Collateral Agent, execute and
deliver any other such instrument transferring to the successor Collateral Agent all the
Collateral, properties, rights, power, trust, duties, authority and title of such retiring
Collateral Agent without any representations or warranties from the retiring Collateral Agent to
the successor Collateral Agent or the Secured Parties. The Grantors shall execute and deliver any
and all documents, conveyances or instruments requested by the Trustee, the retiring Collateral
Agent or the successor Collateral Agent to reflect such transfer to the successor Collateral Agent.
After the Collateral Agent’s resignation hereunder, the provisions of this Article and Section 6.06
shall continue in effect for the benefit of such retiring Collateral Agent and its Affiliates in
respect of any actions taken or omitted to be taken by any of them while acting as the Collateral
Agent.

          SECTION
7.05. Other Matters Concerning the Collateral Agent. (a)
The Collateral Agent’s sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession shall be to deal with it in the same manner as
the Collateral Agent deals with similar property for its own account. Neither the Collateral Agent
nor any of its officers, directors, employees or agents shall be liable for failure to demand,
collect or realize upon any of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any
other Person or to take any other action whatsoever with regard to the Collateral or any part
thereof. The powers conferred on the Collateral Agent hereunder are solely to protect their
interests in the Collateral and shall not impose any duty upon any of them to exercise any such
powers. The Collateral Agent shall be accountable only for amounts that they actually receive as a
result of the exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure to act hereunder,
except for their own gross negligence or willful misconduct, as determined by a court of competent
jurisdiction in a final and nonappealable judgment, nor shall they be liable or responsible for
any loss or damage to any Collateral, or for any diminution in the value thereof, except for their
own gross negligence or willful misconduct, as determined by a court of competent jurisdiction in
a final and nonappealable judgment.

          (b) The Collateral Agent shall not be liable or responsible for any loss or diminution in the
value of any of the Collateral, by reason of the act or omission of any carrier, forwarding agency
or other agent or bailee selected by the Collateral Agent in good faith, except to the extent of
the Collateral Agent’s gross negligence or willful misconduct, as determined by a court of
competent jurisdiction in a final and nonappealable judgment.

          (c) The Collateral Agent shall not be responsible for, nor incur any liability with respect
to, (i) the existence, genuineness or value of any of the Collateral or

 

41

for the validity, perfection, priority or enforceability of the security interest in any of the
Collateral, whether impaired by operation of law or by reason of any action or omission to act on
its part under this Agreement or any of the other Note Documents, except to the extent such action
or omission constitutes gross negligence or willful misconduct on the part of the Collateral Agent,
as determined by a court of competent jurisdiction in a final and nonappealable judgment, (ii) the
validity or sufficiency of the Collateral or any agreement or assignment contained therein, (iii)
the validity of the title of the Grantors to the Collateral, (iv) insuring the Collateral or (v)
the payment of taxes, charges or assessments upon the Collateral or otherwise as to the maintenance
of the Collateral.

          (d) Notwithstanding anything in this Agreement or any of the Notes Documents to the contrary,
(i) the Collateral Agent shall be afforded all of the rights, powers, immunities and indemnities
set forth in this Agreement in all of the other Notes Documents to which it is a signatory as if
such rights, powers, immunities and indemnities were specifically set out in each such Note
Documents. In no event shall the Collateral Agent be obligated to invest any amounts received by it
hereunder.

          (e) The Collateral Agent shall be entitled conclusively to rely, and shall be fully protected
in relying, upon any note, writing, resolution, request, direction, certificate, notice, consent,
affidavit, letter, cablegram, telegram, telecopy, email, telex or teletype message, statement,
order or other document or conversation believed by it in good faith to be genuine and correct and
to have been signed, sent or made by the proper Person or Persons and/or upon advice and/or
statements of legal counsel, independent accountants and other experts selected by the Collateral
Agent and need not investigate any fact or matter stated in any such document. Any such statement
of legal counsel shall be full and complete authorization and protection in respect of any action
taken or suffered by it hereunder in accordance therewith. The Collateral Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any of the other Notes
Documents (i) if such action would, in the reasonable opinion of the Collateral Agent (which may be
based on the opinion of legal counsel), be contrary to applicable law or any of the Notes
Documents, (ii) if such action is not provided for in this Agreement or any of the other Notes
Documents, (iii) if, in connection with the taking of any such action hereunder or under any of the
Notes Documents that would constitute an exercise of remedies hereunder or under any of the Notes
Documents it shall not first be indemnified to its satisfaction by the Holders against any and all
risk of nonpayment, liability and expense that may be incurred by it, its agents or its counsel by
reason of taking or continuing to take any such action, or (iv) if, notwithstanding anything to the
contrary contained in this Agreement, in connection with the taking of any such action that would
constitute a payment due under any agreement or document, it shall not first have received from the
Holders or the Grantors funds equal to the amount payable. The Collateral Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this Agreement or any of the
other Notes Documents in accordance with a request of the Holders of at least a majority in
aggregate principal amount of the Notes, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the other Holders and the Trustee.

 

42

          (f) The Collateral Agent shall not be deemed to have actual, constructive, direct or indirect
knowledge or notice of the occurrence of any Default unless and until the Collateral Agent has
received a written notice or a certificate from the Grantors stating that a Default has occurred.
The Collateral Agent shall have no obligation whatsoever either prior to or after receiving such
notice or certificate to inquire whether a Default has in fact occurred and shall be entitled to
rely conclusively, and shall be fully protected in so relying, on any notice or certificate so
furnished to it. No provision of this Agreement, the Intercreditor Agreement or any of the Notes
Documents shall require the Collateral Agent to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties under this Agreement, any of the other
Notes Documents or the exercise of any of its rights or powers, if it shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such risk or liability
including an advance of moneys necessary to perform work or to take the action requested is not
reasonably assured to it, the Collateral Agent may decline to act unless it receives indemnity
satisfactory to it in its sole discretion, including an advance of moneys necessary to take the
action requested. The Collateral Agent shall be under no obligation or duty to take any action
under this Agreement or any of the other Notes Documents or otherwise if taking such action (i)
would subject the Collateral Agent to a tax in any jurisdiction where it is not then subject to a
tax or (ii) would require the Collateral Agent to qualify to do business in any jurisdiction where
it is not then so qualified.

          SECTION
7.06. Pari Passu Indebtedness; Junior Lien Indebtedness; Intercreditor Agreements.
(a) The Issuer may from time to time designate Indebtedness, to the extent then permitted by the
Indenture, to be secured by a Lien on the Collateral, in which case the Grantors shall (i) cause
any representatives for such Indebtedness to enter into a Pari Passu Intercreditor Agreement or
Junior Lien Intercreditor Agreement, as applicable, and (ii) enter into and file such other
agreements, amendments, financing statements or other documents as the Collateral Agent shall
reasonably request as are necessary in order to comply with the requirements of this Agreement and
the Indenture. Each representative for such Indebtedness agrees to the appointment of the
Collateral Agent as agent for the holders of such Indebtedness and such representative for such
Indebtedness shall, on behalf of itself and each holder of such Indebtedness it represents, be
bound by this Agreement.

          (b) Upon receipt of an Officers’ Certificate certifying compliance with the terms of the Note
Documents, the Collateral Agent shall enter into the Pari Passu Intercreditor Agreement or a Junior
Lien Intercreditor Agreement, as applicable, as contemplated by the definition of “Permitted
Collateral Liens” set forth in the Indenture.

          (c) Notwithstanding anything herein to the contrary, the Security Interest granted to the
Collateral Agent pursuant to any Notes Document (including, without limitation, this Agreement) and
the exercise of any right or remedy by the Collateral Agent hereunder or under any other Notes
Document are subject to the provisions of each Intercreditor Agreement, as applicable. In the event
of any conflict between the terms of any Intercreditor Agreement, this Agreement and any other
Notes Document, the terms of

 

43

the applicable Intercreditor Agreement shall govern and control with respect to any right or
remedy.

[Remainder of page intentionally left blank]

 

 

          IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day
and year first above written.

	 	 	 	 	 
	 	DIAMOND RESORTS CORPORATION,

 	 
	 	by  	/s/ David F. Palmer
 	 
	 	 	Name:  	David F. Palmer 	 
	 	 	Title:  	Executive Vice President
Chief Financial Officer 	 
	 
	 	DIAMOND RESORTS HOLDINGS, LLC,

 	 
	 	by  	/s/ David F. Palmer
 	 
	 	 	Name:  	David F. Palmer  	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	DIAMOND RESORTS PARENT, LLC,

 	 
	 	by  	/s/ David F. Palmer
 	 
	 	 	Name:  	David F. Palmer 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	EACH OF THE SUBSIDIARIES LISTED ON SCHEDULE I HERETO,

 	 
	 	by  	/s/ David F. Palmer
 	 
	 	 	Name:  	David F. Palmer 	 
	 	 	Title:  	Executive Vice President 	 
	 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent,

 	 
	 	    by  	/s/ Maddy Hall
 	 
	 	 	Name:  	Maddy Hall 	 
	 	 	Title:  	Vice President 	 
	 

 

 

Exhibit A to the

Security Agreement

     SUPPLEMENT NO. [•] (this
“Supplement”) dated as
of [•], 20[•] to the Security Agreement dated as of August 13,
2010 (the “Security Agreement”), among DIAMOND RESORTS
CORPORATION, a Maryland Corporation (the “Issuer”),
DIAMOND RESORTS HOLDINGS, LLC, a Nevada limited liability
company (“Holdings”), DIAMOND RESORTS PARENT, LLC, a
Nevada limited liability company (“The Company”), each
U.S. Subsidiary of the Company from time to time party thereto
(each such Subsidiary individually a "Subsidiary Grantor”
and collectively, the "Subsidiary Grantors”; the
Subsidiary Grantors, the Issuer, Holdings and the Company are
referred to collectively herein as the “Grantors”) and
WELLS FARGO BANK, NATIONAL ASSOCIATION, as collateral agent (in
such capacity, the “Collateral Agent”) for the Secured
Parties (as defined therein).

          A. Reference is made to the Indenture
dated as of August 13, 2010 (as amended,
supplemented or otherwise modified from time to time, the “Indenture”), among the
Issuer, the Company, Holdings, the Subsidiary Grantors and Wells Fargo Bank, National
Association, as trustee (in such capacity, the “Trustee”).

          B. Capitalized terms used herein and not
otherwise defined herein shall have the
meanings assigned to such terms in the Indenture or the Security Agreement referred to therein,
as applicable.

          C. The Grantors have entered into the
Security Agreement in order to induce the Trustee to
enter into the Indenture and the Initial Purchasers to purchase the Notes. Section 6.16 of the
Security Agreement provides that additional Subsidiaries of the Company may become Subsidiary
Grantor under the Security Agreement by execution and delivery of an instrument in the form of
this Supplement. The undersigned Subsidiary (the “New Subsidiary”) is executing this
Supplement in accordance with the requirements of the Indenture to become a Subsidiary Grantor
under the Security Agreement.

          Accordingly, the Collateral Agent and the
New Subsidiary agree as follows:

          SECTION 1. In accordance with
Section 6.16 of the Security Agreement, the New Subsidiary
by its signature below becomes a Grantor under the Security Agreement with the same force and
effect as if originally named therein as a Grantor and the New Subsidiary hereby (a) agrees to
all the terms and provisions of the Security Agreement applicable to it as a Grantor thereunder
and (b) represents and warrants that the representations and warranties made by it as a Grantor
thereunder are true and correct on and as of the date hereof. In furtherance of the foregoing,
the New Subsidiary, as security for the payment and performance in full of the Notes
Obligations (as defined in

 

 

A-2

the Security Agreement), does hereby create and grant to the Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties, their successors and
assigns, a security interest in and lien on all of the New Subsidiary’s right, title and
interest in and to the Collateral (as defined in the Security Agreement) of the New Subsidiary.
Each reference to a “Subsidiary Grantor” in the Security Agreement shall be deemed to include
the New Subsidiary. The Security Agreement is hereby incorporated herein by reference.

          SECTION 2. The New Subsidiary
represents and warrants to the Collateral Agent and the
other Secured Parties that this Supplement has been duly authorized, executed and delivered by
it and constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms.

          SECTION 3. This Supplement may be
executed in counterparts (and by different parties
hereto on different counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract. This Supplement shall become effective
when the Collateral Agent shall have received counterparts of this Supplement that, when taken
together, bear the signatures of the New Subsidiary and the Collateral Agent. Delivery of an
executed signature page to this Supplement by facsimile transmission shall be as effective as
delivery of a manually signed counterpart of this Supplement.

          SECTION 4. The New Subsidiary hereby
represents and warrants that (a) set forth on
Schedule I attached hereto is a true and correct schedule of (i) any and all Equity Interests
and Pledged Debt Securities now owned by the New Subsidiary and (ii) any and all Intellectual
Property now owned by the New Subsidiary and (b) set forth under its signature hereto, is the
true and correct legal name of the New Subsidiary and its jurisdiction of organization.

          SECTION 5. Except as expressly
supplemented hereby, the Security Agreement shall remain in
full force and effect.

          SECTION 6. THIS SUPPLEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

          SECTION 7. In case any one or more of
the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and in the Security Agreement shall
not in any way be affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself affect the
validity of such provision in any other jurisdiction). The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

          SECTION 8. All communications and
notices hereunder shall (except as

 

A-3

otherwise
expressly permitted by the Security Agreement) be in writing and given as
provided in Section 12.02 of the Indenture. All communications and notices hereunder to the New
Subsidiary shall be given to it in care of the Issuer as provided in Section 12.02 of the
Indenture.

          SECTION 9. The New Subsidiary agrees
to reimburse the Collateral Agent for its
out-of-pocket expenses in connection with this Supplement, including the fees, other charges
and disbursements of counsel for the Collateral Agent.

 

A-4

          IN WITNESS WHEREOF, the New
Subsidiary and the Collateral Agent have duly executed this
Supplement to the Security Agreement as of the day and year first above written.

	 	 	 	 	 
	 	[NAME OF NEW SUBSIDIARY],

 	 
	 	by  	
 	 
	 	 	Name:  	 	 
	 	 	Title:

Address:

Legal Name:

Jurisdiction of Formation:	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent,

 	 
	 	by  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

	 	 	 	 	 

Schedule I to

Supplement No. [•] to the

Security Agreement

Collateral of the New Subsidiary

EQUITY INTERESTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Number and	 	Percentage
	 	 	 	 	Number of	 	Registered	 	Class of	 	of Equity
	Issuer	 	Certificate	 	Owner	 	Equity Interest	 	Interests

PLEDGED DEBT SECURITIES

	 	 	 	 	 	 	 
	 	 	 	 	Principal	 	 	 	 
	Issuer	 	Amount	 	Date of Note	 	Maturity Date

INTELLECTUAL PROPERTY

[Follow format of Schedule V to the

Security Agreement.]

 

 

Exhibit B to the

Security Agreement

FORM OF PERFECTION CERTIFICATE

 

 

PERFECTION CERTIFICATE

     Reference is made (i) to the Purchase Agreement dated as of August 10, 2010 (as amended,
supplemented or otherwise modified from time to time, the “Purchase Agreement”), among Diamond
Resorts Corporation (the “Issuer”), Diamond Resorts Holdings, LLC (“Holdings”), Diamond Resorts
Parent, LLC (the “Company”), the Guarantors party thereto, and Credit Suisse Securities (USA) LLC,
Banc of America Securities LLC and Guggenheim Securities, LLC, each on behalf of itself and as
representatives for the initial purchasers listed therein, and (ii) to the Security Agreement dated
as of August 13, 2010 (as amended, supplemented or otherwise modified from time to time, the
“Security Agreement”), among the Issuer, Holdings, the Company, the Subsidiaries of the Company
from time to time party thereto (the “Subsidiary Guarantors”) and Wells Fargo Bank, National
Association, as collateral agent (in such capacity, the “Collateral Agent”). Capitalized terms used
but not defined herein have the meanings assigned in the Purchase Agreement or the Security
Agreement, as applicable.

The undersigned hereby certifies to the Collateral Agent and each other Secured Party as follows:

	1.	 	Names.

	 	A.	 	Issuer

	 	(i)	 	The exact legal name of the Issuer, as such name appears
in its respective certificate of formation:

Legal Name of Entity

Diamond Resorts Corporation

	 	(ii)	 	Each other legal name the Issuer has had in the past five
years, together with the date of the relevant change:

	 	 	 	 	 
	Current Legal Name	 	Prior legal name	 	Date of change
	 
	Diamond Resorts Corporation

	 	Sunterra Corporation
	 	10-19-2007

	 	(iii)	 	Except as set forth below, the Issuer has not changed its identity or
corporate structure in any way within the past five years. Changes in identity
or corporate structure would include mergers, consolidations and acquisitions,
as well as any change in the form, nature or jurisdiction of organization. If
any such change has occurred, included below is the information required by
the applicable provisions of Sections 1 and 2 of this certificate as to each
acquiree or constituent party to a merger or consolidation:

	 	 	 	Sunterra Corporation was acquired by a wholly-owned subsidiary of the
Company pursuant to the terms of an Agreement and Plan of Merger on April
27, 2007. In connection with the acquisition, Sunterra Corporation was
renamed Diamond Resorts Corporation in 2007.

 

 

	 	(iv)	 	All other names (including trade names or similar appellations) used
by the Issuer or any of its divisions or other business units in
connection with the conduct of its business or the ownership of its
properties at any time during the past five years:

	 	 	 
	Current Legal Name	 	Trade Names/Assumed Names
	 
	Diamond Resorts Corporation

	 	Diamond Resorts International

	 	(v)	 	The Organizational Identification Number, if any, issued
by the jurisdiction of formation of the Issuer that is a registered
organization:

	 	 	 
	Legal Name of Entity	 	Organizational-Identification Number
	 
	Diamond Resorts Corporation

	 	D04417598

	 	(vi)	 	The Federal Taxpayer Identification Number of the Issuer: [only
necessary for filing in North Dakota and South Dakota]

	 	 	 
	 	 	Federal Taxpayer Identification
	Legal Name of Entity	 	Number
	 
	Diamond Resorts Corporation

	 	95-4582157

	 	B.	 	Holdings and the Company

	 	(i)	 	The exact legal name of each of Holdings and the Company,
as such name appears in its respective certificate of formation:

Legal Name of Entity

Diamond Resorts Holdings, LLC

Diamond Resorts Parent, LLC

	 	(ii)	 	Each other legal name Holdings and the Company has had in
the past five years, together with the date of the relevant change:

	 	 	 	 	 
	Current Legal Name	 	Prior legal name	 	Date of Change
	 
	N/A

	 	None
	 	N/A

	 	(iii)	 	Neither Holdings nor the Company has changed its identity or
corporate structure in any way within the past five years. Changes in
identity or corporate structure would include mergers, consolidations and
acquisitions, as well as any change in the form, nature or jurisdiction of
organization.
	 
	 	(iv)	 	All other names (including trade names or similar
appellations) used by either Holdings or the Company or any of their
divisions or other business units in connection with the conduct of the
business of either Holdings or the Company or the ownership of the
properties of either Holdings or the Company at any time during the past
five years:

2

 

	 	 	 
	Current Legal Name	 	Trade Names/Assumed Names
	 
	N/A

	 	N/A

	 	(v)	 	The Organizational Identification Number, if any, issued by the
jurisdiction of formation of each of Holdings and the Company that is a
registered organization:

	 	 	 

	Legal Name of Entity

	 	Organizational Identification Number
	Diamond Resorts Parent, LLC

	 	NV SOS: E0219522007-6
	Diamond Resorts Holdings, LLC

	 	NV SOS: E0181582007-7

	 	(vi)	 	The Federal Taxpayer Identification Number of each of Holdings and the
Company: [only necessary for filing in North Dakota and South Dakota.]

	 	 	 
	 	 	Federal Taxpayer Identification
	Legal Name of Entity	 	Number
	 
	N/A

	 	N/A

	 	C.	 	Subsidiary Guarantors

	 	(i)	 	The exact legal name of each Subsidiary Guarantor, as
such name appears in its respective certificate of formation:

Legal Name of Entity

	 	1.	 	AKGI Poipu Investments, Inc.
	 
	 	2.	 	AKGI-St. Maarten N.V.
	 
	 	3.	 	Chestnut Farms, LLC
	 
	 	4.	 	Cumberland Gate, LLC
	 
	 	5.	 	Diamond Resorts Beach Group, LLC
	 
	 	6.	 	Diamond Resorts California Collection Development, LLC
	 
	 	7.	 	Diamond Resorts Centralized Services Company
	 
	 	8.	 	Diamond Resorts Citrus Share Holding, LLC
	 
	 	9.	 	Diamond Resorts Coral Sands Development, LLC
	 
	 	10.	 	Diamond Resorts Cypress Pointe I Development, LLC
	 
	 	11.	 	Diamond Resorts Cypress Pointe II Development, LLC
	 
	 	12.	 	Diamond Resorts Cypress Pointe III Development, LLC
	 
	 	13.	 	Diamond Resorts Daytona Development, LLC
	 
	 	14.	 	Diamond Resorts Developer and Sales Holding Company
	 
	 	15.	 	Diamond Resorts Epic Mortgage Holdings, LLC
	 
	 	16.	 	Diamond Resorts Fall Creek Development, LLC

3

 

Legal Name of Entity

	 	17.	 	Diamond Resorts Finance Holding Company
	 
	 	18.	 	Diamond Resorts Financial Services, Inc.
	 
	 	19.	 	Diamond Resorts Grand Beach I Development, LLC
	 
	 	20.	 	Diamond Resorts Grand Beach II Development, LLC
	 
	 	21.	 	Diamond Resorts Greensprings Development, LLC
	 
	 	22.	 	Diamond Resorts Hawaii Collection Development, LLC
	 
	 	23.	 	Diamond Resorts Hilton Head Development, LLC
	 
	 	24.	 	Diamond Resorts International Club, Inc.
	 
	 	25.	 	Diamond Resorts International Marketing, Inc.
	 
	 	26.	 	Diamond Resorts Las Vegas Development, LLC
	 
	 	27.	 	Diamond Resorts Management & Exchange Holding Company
	 
	 	28.	 	Diamond Resorts Management, Inc.
	 
	 	29.	 	Diamond Resorts Mazatlan Land, LLC
	 
	 	30.	 	Diamond Resorts Mexico Share Holding, LLC
	 
	 	31.	 	Diamond Resorts Mortgage Holdings, LLC
	 
	 	32.	 	Diamond Resorts Palm Springs Development, LLC
	 
	 	33.	 	Diamond Resorts Poco Diablo Development, LLC
	 
	 	34.	 	Diamond Resorts Poipu Development, LLC
	 
	 	35.	 	Diamond Resorts Polo Development, LLC
	 
	 	36.	 	Diamond Resorts Port Royal Development, LLC
	 
	 	37.	 	Diamond Resorts Powhatan Development, LLC
	 
	 	38.	 	Diamond Resorts Residual Assets Development, LLC
	 
	 	39.	 	Diamond Resorts Residual Assets Finance, LLC
	 
	 	40.	 	Diamond Resorts Residual Assets M&E, LLC
	 
	 	41.	 	Diamond Resorts Ridge on Sedona Development, LLC
	 
	 	42.	 	Diamond Resorts Ridge Pointe Development, LLC
	 
	 	43.	 	Diamond Resorts San Luis Bay Development, LLC
	 
	 	44.	 	Diamond Resorts Santa Fe Development, LLC
	 
	 	45.	 	Diamond Resorts Scottsdale Development, LLC
	 
	 	46.	 	Diamond Resorts Sedona Springs Development, LLC
	 
	 	47.	 	Diamond Resorts Sedona Summit Development, LLC
	 
	 	48.	 	Diamond Resorts St. Croix Development, LLC
	 
	 	49.	 	Diamond Resorts Steamboat Development, LLC

4

 

Legal Name of Entity

	 	50.	 	Diamond Resorts Tahoe Beach & Ski Development, LLC
	 
	 	51.	 	Diamond Resorts U.S. Collection Development, LLC
	 
	 	52.	 	Diamond Resorts Villa Mirage Development, LLC
	 
	 	53.	 	Diamond Resorts Villas of Sedona Development, LLC
	 
	 	54.	 	Diamond Resorts West Maui Development, LLC
	 
	 	55.	 	Foster Shores, LLC
	 
	 	56.	 	George Acquisition Subsidiary, Inc.
	 
	 	57.	 	Ginger Creek, LLC
	 
	 	58.	 	Grand Escapes, LLC
	 
	 	59.	 	International Timeshares Marketing, LLC
	 
	 	60.	 	Lake Tahoe Resort Partners, LLC
	 
	 	61.	 	Mazatlan Development Inc.
	 
	 	62.	 	MMG Development Corp.
	 
	 	63.	 	Poipu Resort Partners, L.P.
	 
	 	64.	 	Resort Management International, Inc.
	 
	 	65.	 	Resorts Development International, Inc.
	 
	 	66.	 	Sunterra Resort Rental Management, Inc.
	 
	 	67.	 	Walsham Lake, LLC
	 
	 	68.	 	West Maui Resort Partners, L.P.

	 	(ii)	 	Each other legal name each Subsidiary Guarantor has had, together
with the date of the relevant change:

	 	 	 	 	 	 	 
	Current Legal Name	 	Prior Legal Name	 	Date of Change
	 
	1.

	 	AKGI Poipu Investments, Inc.	 	 	 	 
	 
	2.

	 	AKGI-St. Maarten N.V.	 	 	 	 
	 
	3.

	 	Chestnut Farms, LLC	 	 	 	 
	 
	4.

	 	Cumberland Gate, LLC	 	 	 	 
	 
	5.

	 	Diamond Resorts Beach Group, LLC
	 	Sunterra Beach Group, LLC
	 	October 17, 2007
	 
	6.

	 	Diamond Resorts California Collection Development, LLC
	 	Club Sunterra Development
California, LLC
Club Sunterra
Development II, LLC
Club Sunterra
Development St. Maarten, LLC
 Club
Sunterra Development II, LLC

Sunterra Texas Development, LLC
	 	October 17, 2007

February 18, 2005 

December 15, 2003

December 10, 2003

October 7, 2003

5

 

	 	 	 	 	 
	Current Legal Name	 	Prior Legal Name	 	Date of Change
	 
	7.  Diamond Resorts
Centralized Services Company

	 	Sunterra Centralized Services Company
	 	October 17, 2007
	 
	8.  Diamond Resorts Citrus Share Holding, LLC

	 	Sunterra Citrus Share Holding, LLC
 Sunterra South Marketing, LLC
	 	October 17, 2007
January 23, 2004
	 
	9.  Diamond Resorts Coral Sands Development, LLC
	 	Sunterra Coral Sands Development, LLC
	 	October 17, 2007
	 
	10.  Diamond Resorts Cypress Pointe I Development, LLC

	 	Sunterra Cypress Pointe I Development, LLC
	 	October 17, 2007
	 
	11.  Diamond Resorts Cypress Pointe
II Development, LLC

	 	Sunterra Cypress Pointe II Development, LLC
	 	October 17,2007
	 
	12.  Diamond Resorts Cypress Pointe
III Development, LLC

	 	Sunterra Cypress Pointe III Development, LLC
	 	October 17, 2007
	 
	13.  Diamond Resorts Daytona
Development, LLC

	 	Sunterra Daytona Development, LLC 
Sunterra
Bent Creek Golf Course Development, LLC
	 	October 17, 2007
October 7, 2003
	 
	14.  Diamond Resorts Developer and
Sales Holding Company

	 	Sunterra Developer and Sales Holding
Company 
Avcom International, Inc. 

American
Vacation Company, Inc.
	 	October 17, 2007

July 9, 2002 
October 12,
1993
	 
	15.   Diamond Resorts Epic Mortgage
Holdings, LLC

	 	Sunterra Epic Mortgage Holdings, LLC

Sunterra KGK Partners Finance, LLC
	 	October 17, 2007
October 7, 2003
	 
	 16.   Diamond Resorts Fall Creek
Development, LLC

	 	Sunterra Fall Creek Development, LLC
	 	October 17, 2007
	 
	 17.   Diamond Resorts Finance Holding
Company

	 	Sunterra Finance Holding Company
	 	October 17, 2007
	 
	 18.   Diamond Resorts Financial
Services, Inc.

	 	Sunterra Financial Services, Inc.
	 	October 29, 2007
	 
	 19.   Diamond Resorts Grand Beach I
Development, LLC

	 	Sunterra Grand Beach I Development, LLC
	 	October 17, 2007
	 
	20.   Diamond Resorts Grand Beach II
Development, LLC

	 	Sunterra Grand Beach II Development, LLC
	 	October 17, 2007
	 
	21.   Diamond Resorts Greensprings
Development, LLC

	 	Sunterra Greensprings Development, LLC
	 	October 17, 2007
	 
	22.   Diamond Resorts Hawaii Collection
Development, LLC

	 	Club Sunterra Development Hawaii, LLC 

Club Sunterra Development III, LLC 

Club Sunterra Development California, LLC 

Club Sunterra Mergerclub, LLC 

Club Sunterra Development California, LLC 

Sunterra East Marketing, LLC
	 	October 17, 2007

September 9, 2005 

February 18, 2005

July 29, 2004 

June 23, 2004 

November 12, 2003
	 
	23.  Diamond Resorts Hilton Head 

Development, LLC

	 	Sunterra Hilton Head Development, LLC

Sunterra Bent Creek Village Development, LLC
	 	October 17, 2007
October 7, 2003

6

 

	 	 	 	 	 
	Current Legal Name	 	Prior Legal Name	 	Date of Change
	 
	
24.  Diamond Resorts International
Club, Inc.

	 	Club Sunterra, Inc.
	 	October 19, 2007
	 
	25.  Diamond Resorts International
Marketing, Inc.

	 	Resort Marketing International, Inc.
	 	November 2, 2007
	 
	26.   Diamond Resorts Las Vegas
Development, LLC

	 	Sunterra Las Vegas Development, LLC

Sunterra Polynesian Isles Development, LLC
	 	October 17, 2007
October 7, 2003
	 
	 27.   Diamond Resorts Management &
Exchange Holding Company 

	 	Sunterra Management & Exchange Holding

Company
	 	October 17, 2007
	 
	28.  Diamond Resorts Management,
Inc.

	 	Sunterra Resort Management, Inc. 
RPM
Management, Inc.
	 	October 23, 2007

February 16, 2005
	 
	29.  Diamond Resorts Mazatlan Land,
LLC

	 	 	 	 
	 
	30.  Diamond Resorts Mexico Share
Holding, LLC

	 	Sunterra Mexico Share Holding, LLC

Sunterra Kallof Place Development
	 	October 17, 2007

June 1, 2005
	 
	31.  Diamond Resorts Mortgage Holdings,
LLC

	 	Sunterra Mortgage Holdings, LLC
	 	October 17, 2007
	 
	32.  Diamond Resorts Palm Springs
Development, LLC 

	 	Sunterra Palm Springs Development, LLC

Sunterra North Marketing, LLC
	 	October 17, 2007
October 7, 2003
	 
	33.  Diamond Resorts Poco Diablo
Development, LLC

	 	Sunterra Poco Diablo Development, LLC
	 	October 17, 2003
	 
	34.  Diamond Resorts Poipu Development,
LLC

	 	Sunterra Poipu Development, LLC 
Sunterra
Lake Tahoe Development, LLC
	 	October 17, 2007

July 10, 2007
	 
	35.  Diamond Resorts Polo Development,
LLC

	 	Polo Sunterra Development, LLC
	 	October 18, 2007
	 
	36.  Diamond Resorts Port Royal
Development, LLC

	 	Sunterra Port Royal Development, LLC
	 	October 17, 2007
	 
	37.  Diamond Resorts Powhatan
Development, LLC

	 	Sunterra Powhatan Development, LLC
	 	October 17,2007
	 
	38.  Diamond Resorts Residual Assets
Development, LLC

	 	Sunterra Residual Assets Development, LLC
	 	October 17, 2007
	 
	39.  Diamond Resorts Residual Assets
Finance, LLC

	 	Sunterra Residual Assets Finance, LLC
	 	October 17, 2007
	 
	40.  Diamond Resorts Residual Assets
M&E, LLC

	 	Sunterra Residual Assets M&E, LLC
	 	October 17, 2007
	 
	41.  Diamond Resorts Ridge on Sedona
Development, LLC

	 	Sunterra Ridge on Sedona Development, LLC
	 	October 17, 2007
	 
	42.  Diamond Resorts Ridge Pointe
Development, LLC

	 	Sunterra Ridge Pointe Development, LLC
	 	October 17, 2007
	 
	43.  Diamond Resorts San Luis Bay
Development, LLC

	 	Sunterra San Luis Bay Development, LLC
	 	October 17, 2007

7

 

	 	 	 	 	 
	Current Legal Name	 	Prior Legal Name	 	Date of Change
	 
	44.  Diamond Resorts Santa Fe
Development, LLC

	 	Sunterra Santa Fe Development, LLC
	 	October 17, 2007
	 
	45.  Diamond Resorts Scottsdale
Development, LLC

	 	Sunterra Scottsdale Development, LLC

Sunterra Poipu GP Development, LLC
	 	October 17, 2007
October 7, 2003
	 
	46.  Diamond Resorts Sedona Springs
Development, LLC

	 	Sunterra Sedona Springs Development, LLC
	 	October 17, 2007
	 
	47.  Diamond Resorts Sedona Summit
Development, LLC

	 	Sunterra Sedona Summit Development, LLC
	 	October 17, 2007
	 
	 48.   Diamond Resorts St. Croix
Development, LLC

	 	Sunterra St. Croix Development, LLC
	 	October 17, 2007
	 
	 49.   Diamond Resorts Steamboat
Development, LLC

	 	Sunterra Steamboat Development, LLC
	 	October 17, 2007
	 
	 50.   Diamond Resorts Tahoe Beach &
Ski Development, LLC

	 	Sunterra Tahoe Beach & Ski Development, LLC
	 	October 17, 2007
	 
	 51.   Diamond Resorts U.S.
Collection Development, LLC

	 	Club Sunterra Development, LLC 
Club
Sunterra, LLC
	 	October 17, 2007

August 15, 2003
	 
	 52.   Diamond Resorts Villa Mirage
Development, LLC

	 	Sunterra Villa Mirage Development, LLC
	 	October 17,2007
	 
	 53.   Diamond Resorts Villas of
Sedona Development, LLC

	 	Sunterra Villas of Sedona Development,
LLC
	 	October 17, 2007
	 
	 54.   Diamond Resorts West Maui
Development, LLC

	 	Sunterra West Maui Development, LLC

Sunterra West Marketing, LLC
	 	October 17, 2007 
May
21, 2004
	 
	 55.   Foster Shores, LLC

	 	 	 	 
	 
	 56.   George Acquisition Subsidiary,
Inc.

	 	 	 	 
	 
	 57.   Ginger Creek, LLC

	 	 	 	 
	 
	 58.   Grand Escapes, LLC

	 	 	 	 
	 
	 59.   International Timeshares
Marketing, LLC

	 	 	 	 
	 
	 60.   Lake Tahoe Resort Partners,
LLC

	 	 	 	 
	 
	 61.   Mazatlan Development Inc.

	 	Mazatlan Villas, Inc.
	 	May 16, 1989
	 
	 62.   MMG Development Corp.

	 	 	 	 
	 
	 63.   Poipu Resort Partners, L.P.

	 	Pointe Resort Partners, L.P.
	 	January 10, 1995
	 
	 64.   Resort Management
International, Inc.

	 	 	 	 
	 
	 65.   Resorts Development
International, Inc.

	 	 	 	 
	 
	 66.   Sunterra Resort Rental
Management, Inc.

	 	 	 	 

8

 

	 	 	 	 	 
	Current Legal Name	 	Prior Legal Name	 	Date of Change
	 
	 67.   Walsham Lake, LLC 

	 	 	 	 
	 
	 68.   West Maui Resort
Partners, L.P.

	 	West Maui Partners, L.P.
	 	January 7, 1997

	 	(iii)	 	Except as set forth below, no Subsidiary Guarantor has changed its
identity or corporate structure in any way within the past five years.
Changes in identity or corporate structure would include mergers,
consolidations and acquisitions, as well as any change in the form, nature or
jurisdiction of organization. If any such change has occurred, included below
is the information required by the applicable provisions of
Sections 1 and 2
of this certificate as to each acquiree or constituent party to a merger or
consolidation:

Prior to and/or immediately following July 29, 2002, the Company completed its restructuring.
Since that time, the following entities have been merged:

1. All Seasons Realty, Inc., an Arizona corporation, Premier Vacations, Inc., a Florida corporation
and The Ridge Spa and Racquet Club, Inc., an Arizona corporation into Sunterra Residual Assets
Development, LLC, a Delaware limited liability company 01/06/06

2. Grand Beach Resort, Limited Partnership, a Georgia limited Partnership into Sunterra Grand Beach
I Development, LLC, a Delaware limited liability company 01/11/06 and Grand Beach Partners, L.P. a
California limited partnership cancelled 01/11/06

3. Argosy Grand Beach, Inc., a Georgia corporation, Argosy Partners, Inc., a Georgia corporation
and KGI Grand Beach Investments, Inc. into Sunterra Residual Assets Development, LLC 09/29/06.

4. Argosy/KGI Grand Beach Investment Partnership, a California general partnership dissolved by
operation of law when all of the general partners were merged.

5. Partial collapse of limited partnership structure of Poipu Resort Partners, LP.
Argosy/KGI Poipu Investment Partnership, LP, a Hawaii limited partnership and sandwich entity,
terminated 12/30/05.

6. Blue Bison Funding Corp., a Delaware corporation into Sunterra Residual Assets Finance, LLC, a
Delaware limited liability company 01/04/06

7. Epic Receivables 1999, LLC, a Delaware limited liability company, Epic Residual Assets, Inc., a
Delaware corporation, Dutch Elm, LLC, a Nevada limited liability company, Dutch Elm Holdings, LLC,
a Delaware limited liability company, Terrasun, LLC, a Nevada limited liability company, Terrasun
Holdings, LLC, a Delaware limited liability company with and into Sunterra Residual Assets Finance,
LLC, a Delaware limited liability company 09/18/06.

9

 

8. KGK Partners, Inc. a California corporation and KGK Investors, Inc., a California
corporation into Sunterra Residual Assets Finance, LLC a Delaware limited liability company
01/05/06.

9. KGK Lake Tahoe Development, Inc., a California corporation and AKGI Lake Tahoe Investments,
Inc., a California corporation into Sunterra Developer and Sales Holding Company, a Delaware
corporation 01/11/06.

10. RPM Management, LLC, a Delaware limited liability company into Sunterra Residual Assets M&E,
LLC, a Delaware limited liability company 01/11/06

11. SunSera Funding Corp., a Nevada corporation into Sunterra Residual Assets Finance, LLC, a
Delaware limited liability company 01/06/06.

12. Signature Capital-West Maui, LLC a Delaware limited liability company into Sunterra Residual
Assets Development, LLC, a Delaware limited liability company 11/12/06

13. Epic Master Funding Corporation , a Delaware corporation into Sunterra Epic Mortgage Holdings,
LLC, a Delaware limited liability company 01/01/06.

14. Epic Declarant, Inc. a Delaware corporation into Sunterra Residual Assets Development, LLC
09/18/06.

15. Diamond Resorts Centralized Services Global, LLC, a Delaware limited liability company,
Diamond Resorts Centralized Services Nevada, LLC, a Delaware limited liability company, and
Diamond Resorts Centralized Services USA, LLC, a Delaware limited liability company into Diamond
Resorts Centralized Services Company, a Delaware corporation 12/31/09

	 	(iv)	 	All other names (including trade names or similar
appellations) used by each Subsidiary Guarantor or any of its divisions or
other business units in connection with the conduct of its business or the
ownership of its properties at any time during the past five years:

	 	 	 
	Current Legal Name	 	Trade Names/Assumed Names
	Diamond Resorts Grand Beach II Development, LLC

	 	Grand Beach in Florida — Expires 12/31/2011
	Diamond
Resorts Grand Beach II Development, LLC

	 	Grand Beach Vacation Resort — Expires 12/31/2011
	Sunterra Resort Management, Inc.

	 	NSB in Florida — Expires 12/31/2010
	West
Maui Resort Partners, L.P.

	 	Kaanapali Beach Vacation Resort in
Hawaii — Expires 04/18/2011
	West
Maui Resort Partners, L.P.

	 	Ka’anapali Beach Club in Hawaii — Expires 08/06/2011
	West Maui Resort Partners, L.P.

	 	Travalhawaii.com in Hawaii — Expires 08/16/2012
	West Maui Resort Partners, L.P.

	 	Rental Warehouse in Hawaii — Expires 08/16/2012
	West Maui Resort Partners, L.P.

	 	Duke’s Surf Shop in Hawaii — Expires 03/14/2013
	West Maui Resort Partners, L.P.

	 	Duke’s Surf Academy in Hawaii — Expires 09/16/2012
	West Maui Resort Partners, L.P.

	 	Beach Buddies in Hawaii — Expires 09/20/2011
	West Maui Resort Partners, L.P.

	 	Activity Warehouse in Hawaii — Expires 06/11/2011

10

 

	 	 	 
	Current Legal Name	 	Trade Names/Assumed Names
	MMG Development Corp.

	 	FORCED Sunterra MMG in Missouri
	MMG Development Corp.

	 	FORCED Sunterra MMG in Ohio
	Resort Marketing International, Inc.

	 	FORCED RMI-Missouri, Inc. in Missouri
	Resort Marketing International, Inc.

	 	FORCED North Carolina-RMI, Inc. in NC
	Resort Marketing International, Inc.

	 	FORCED RMI-Nevada, Inc. in NV

	 	(v)	 	The Organizational Identification Number, if any, issued by the
jurisdiction of formation of each Subsidiary Guarantor that is a registered
organization:

	 	 	 
	Legal Name of Entity	 	Organizational Identification Number
	1. AKGI Poipu Investments, Inc.
	 	1915078
	2.
AKGI-St. Maarten N.V.
	 	2653470
	3. Chestnut Farms, LLC
	 	E0202612008-9
	4. Cumberland Gate, LLC
	 	4556750
	5. Diamond Resorts Beach Group, LLC
	 	4063365
	6. Diamond Resorts California Collection Development, LLC
	 	3549372
	7. Diamond Resorts Centralized Services Company
	 	3545707
	8. Diamond Resorts Citrus Share Holding, LLC
	 	3547837
	9. Diamond Resorts Coral Sands Development, LLC
	 	3547761
	10. Diamond Resorts Cypress Pointe I Development, LLC
	 	3547739
	11. Diamond Resorts Cypress Pointe II Development, LLC
	 	3547743
	12. Diamond Resorts Cypress Pointe III Development, LLC
	 	3547747
	13. Diamond Resorts Daytona Development, LLC
	 	3547730
	14. Diamond Resorts Developer and Sales Holding Company
	 	2347738
	15. Diamond Resorts Epic Mortgage Holdings, LLC
	 	3547777
	16. Diamond Resorts Fall Creek Development, LLC
	 	3547764
	17. Diamond Resorts Finance Holding Company
	 	3545700
	18. Diamond Resorts Financial Services, Inc.
	 	C24978-1998
	19. Diamond Resorts Grand Beach I Development, LLC
	 	3547765

11

 

	 	 	 
	Legal Name of Entity	 	Organizational Identification Number
	20. Diamond Resorts Grand Beach II Development, LLC
	 	3547770
	21. Diamond Resorts Greensprings Development, LLC
	 	3547775
	22. Diamond Resorts Hawaii Collection Development, LLC
	 	3547896
	23. Diamond Resorts Hilton Head Development, LLC
	 	3547733
	24. Diamond Resorts International Club, Inc.
	 	P98000035449
	25. Diamond Resorts International Marketing, Inc.
	 	1884773
	26. Diamond Resorts Las Vegas Development, LLC
	 	3547892
	27. Diamond Resorts Management & Exchange Holding Company
	 	3547708
	28. Diamond Resorts Management, Inc.
	 	237659-4
	29. Diamond Resorts Mazatlan Land, LLC
	 	4582637
	30. Diamond Resorts Mexico Share Holding, LLC
	 	3547778
	31. Diamond Resorts Mortgage Holdings, LLC
	 	3545720
	32. Diamond Resorts Palm Springs Development, LLC
	 	3547790
	33. Diamond Resorts Poco Diablo Development, LLC
	 	3547793
	34. Diamond Resorts Poipu Development, LLC
	 	3547783
	35. Diamond Resorts Polo Development, LLC
	 	E0311562007-3
	36. Diamond Resorts Port Royal Development, LLC
	 	3547795
	37. Diamond Resorts Powhatan Development, LLC
	 	3547797
	38. Diamond Resorts Residual Assets Development, LLC
	 	3547801
	39. Diamond Resorts Residual Assets Finance, LLC
	 	3549353
	40. Diamond Resorts Residual Assets M&E, LLC
	 	3549355
	41. Diamond Resorts Ridge on Sedona Development, LLC
	 	3547804
	42. Diamond Resorts Ridge Pointe Development, LLC
	 	3547811

12

 

	 	 	 
	Legal Name of Entity	 	Organizational Identification Number
	43. Diamond Resorts San Luis Bay Development, LLC
	 	3547816
	44. Diamond Resorts Santa Fe Development, LLC
	 	3547829
	45. Diamond Resorts Scottsdale Development, LLC
	 	3547794
	46. Diamond Resorts Sedona Springs Development, LLC
	 	3547830
	47. Diamond Resorts Sedona Summit Development, LLC
	 	3547836
	48. Diamond Resorts St. Croix Development, LLC
	 	3547895
	49. Diamond Resorts Steamboat Development, LLC
	 	3547851
	50. Diamond Resorts Tahoe Beach & Ski Development, LLC
	 	3547854
	51. Diamond Resorts U.S. Collection Development, LLC
	 	3547999
	52. Diamond Resorts Villa Mirage Development, LLC
	 	3547856
	53. Diamond Resorts Villas of Sedona Development, LLC
	 	3547861
	54. Diamond Resorts West Maui Development, LLC
	 	3547864
	55. Foster Shores, LLC
	 	LC0884730
	56. George Acquisition Subsidiary, Inc.
	 	C22939-97
	57. Ginger Creek, LLC
	 	4556751
	58. Grand Escapes, LLC
	 	3881776
	59. International Timeshares Marketing, LLC
	 	3547724
	60. Lake Tahoe Resort Partners, LLC
	 	101996061021
	61. Mazatlan Development Inc.
	 	601119773
	62. MMG Development Corp.
	 	P94000061945
	63. Poipu Resort Partners, L.P.
	 	6059 L5
	64. Resort Management International, Inc.
	 	1968609
	65. Resorts Development International, Inc.
	 	6816-82
	66. Sunterra Resort Rental Management, Inc.
	 	4292100
	67. Walsham Lake, LLC
	 	LC0884732
	68. West Maui Resort Partners, L.P.
	 	2604976

13

 

	 	(vi)	 	The Federal Taxpayer Identification Number of each Subsidiary Guarantor:
[only necessary for filing in North Dakota and South Dakota.]

	 	 	 
	 	 	Federal Taxpayer Identification
	Legal Name of Entity	 	Number
	1. AKGI Poipu Investments, Inc.
	 	95-4501614
	2. AKGI-St. Maarten N.V.
	 	59-3324734
	3. Chestnut Farms, LLC
	 	01-0905882
	4. Cumberland Gate, LLC
	 	61-1596179
	5. Diamond Resorts Beach Group, LLC
	 	20-3821650
	6. Diamond Resorts California Collection Development, LLC
	 	20-0292225
	7. Diamond Resorts Centralized Services Company
	 	82-0554601
	8. Diamond Resorts Citrus Share Holding, LLC
	 	33-1014939
	9. Diamond Resorts Coral Sands Development, LLC
	 	33-1014958
	10 Diamond Resorts Cypress Pointe I Development, LLC
	 	33-1014959
	11. Diamond Resorts Cypress Pointe II Development, LLC
	 	33-1014960
	12. Diamond Resorts Cypress Pointe III Development, LLC
	 	33-1014961
	13. Diamond Resorts Daytona Development, LLC
	 	33-1014956
	14. Diamond Resorts Developer and Sales Holding Company
	 	86-0787595
	15. Diamond Resorts Epic Mortgage Holdings, LLC
	 	33-1014921
	16. Diamond Resorts Fall Creek Development, LLC
	 	33-1014962
	17. Diamond Resorts Finance Holding Company
	 	82-0554621
	18. Diamond Resorts Financial Services, Inc.
	 	88-0410455
	19. Diamond Resorts Grand Beach I Development, LLC
	 	33-1014963
	20. Diamond Resorts Grand Beach II Development, LLC
	 	33-1014965
	21. Diamond Resorts Greensprings Development, LLC
	 	33-1014966
	22. Diamond Resorts Hawaii Collection Development, LLC
	 	33-1014926

14

 

	 	 	 
	 	 	Federal Taxpayer Identification
	Legal Name of Entity	 	Number
	23. Diamond Resorts Hilton Head Development, LLC
	 	33-1014957
	24. Diamond Resorts International Club, Inc.
	 	59-3510037
	25. Diamond Resorts International Marketing, Inc.
	 	95-4484297
	26. Diamond Resorts Las Vegas Development, LLC
	 	33-1014971
	27. Diamond Resorts Management & Exchange Holding Company
	 	33-1014911
	28. Diamond Resorts Management, Inc.
	 	86-0713421
	29. Diamond Resorts Mazatlan Land, LLC
	 	 
	30. Diamond Resorts Mexico Share Holding, LLC
	 	33-1014967
	31. Diamond Resorts Mortgage Holdings, LLC
	 	82-0554625
	32. Diamond Resorts Palm Springs Development, LLC
	 	33-1014935
	33. Diamond Resorts Poco Diablo Development, LLC
	 	33-1014970
	34. Diamond Resorts Poipu Development, LLC
	 	33-1014968
	35. Diamond Resorts Polo Development, LLC
	 	26-0145739
	36. Diamond Resorts Port Royal Development, LLC
	 	33-1014973
	37. Diamond Resorts Powhatan Development, LLC
	 	33-1014974
	38. Diamond Resorts Residual Assets Development, LLC
	 	33-1014975
	39. Diamond Resorts Residual Assets Finance, LLC
	 	33-1014919
	40. Diamond Resorts Residual Assets M&E, LLC
	 	33-1014914
	41. Diamond Resorts Ridge on Sedona Development, LLC
	 	33-1014976
	42. Diamond Resorts Ridge Pointe Development, LLC
	 	33-1014977
	43. Diamond Resorts San Luis Bay Development, LLC
	 	33-1014978
	44. Diamond Resorts Santa Fe Development, LLC
	 	33-1014979
	45. Diamond Resorts Scottsdale Development, LLC
	 	33-1014954

15

 

	 	 	 
	 	 	Federal Taxpayer Identification
	Legal Name of Entity	 	Number
	46. Diamond Resorts Sedona Springs Development, LLC
	 	33-1014980
	47. Diamond Resorts Sedona Summit Development, LLC
	 	33-1014981
	48. Diamond Resorts St. Croix Development, LLC
	 	33-1014982
	49. Diamond Resorts Steamboat Development, LLC
	 	33-1014984
	50. Diamond Resorts Tahoe Beach & Ski Development, LLC
	 	33-1014986
	51. Diamond Resorts U.S. Collection Development, LLC
	 	33-1014915
	52. Diamond Resorts Villa Mirage Development, LLC
	 	33-1014985
	53. Diamond Resorts Villas of Sedona Development, LLC
	 	33-1014987
	54. Diamond Resorts West Maui Development, LLC
	 	33-1014927
	55. Foster Shores, LLC
	 	01-0905934
	56. George Acquisition Subsidiary, Inc.
	 	58-2385599
	57. Ginger Creek, LLC
	 	32-0262324
	58. Grand Escapes, LLC
	 	20-1884181
	59. International Timeshares Marketing, LLC
	 	33-1014941
	60. Lake Tahoe Resort Partners, LLC
	 	95-4569152
	61. Mazatlan Development Inc.
	 	91-1491324
	62. MMG Development Corp.
	 	65-0530260
	63. Poipu Resort Partners, L.P.
	 	95-4501724
	64. Resort Management International, Inc.
	 	95-4582082
	65. Resorts Development International, Inc.
	 	88-0198739
	66. Sunterra Resort Rental Management, Inc.
	 	20-8792805
	67. Walsham Lake, LLC
	 	01-0905847
	68. West Maui Resort Partners, L.P.
	 	99-0327624

2. Current Locations.

          A. Issuer

	 	(i)	 	The chief executive office of the Issuer is located at:

16

 

	 	 	 
	Name of Entity	 	Chief Executive Office
	Diamond Resorts Corporation
	 	10600 West Charleston Boulevard

Las Vegas, Nevada 89135

	 	(ii)	 	All locations where the Issuer maintains any books or
records relating to any Accounts Receivable (with each location at which
chattel paper, if any, is kept being indicated by an “*”):

Location of Books or Records

	 	 	 	 	 
	Name of Entity	 	Address of books or records location	 	County
	Diamond Resorts 

Corporation
	 	10600 West Charleston Boulevard

Las Vegas, Nevada 89135
	 	Clark

	 	(iii)	 	The jurisdiction of formation of the Issuer that is a registered
organization:

	 	 	 
	Name of Entity	 	Jurisdiction of Organization
	Diamond Resorts Corporation
	 	Maryland

	 	(iv)	 	All locations where the Issuer maintains any Equipment or
other Collateral:

None.

	 	(v)	 	All the places of business of the Issuer not identified in
paragraph (i), (ii), (iii) or (iv) above:

None.

	 	(vi)	 	All names and addresses of all Persons other than the Issuer
that have possession of any of the Collateral of the Issuer:

	 	 	 	 	 
	Name	 	Address	 	Collateral
	Credit Suisse, Cayman Islands
	 	11 West Madison
	 	Collateral for the First and
	Branch, as Collateral Agent
	 	New York, NY 10010
	 	Second Liens

          B. Holdings and the Company

	 	(i)	 	The chief executive office of each of Holdings and the
Company is located at:

	 	 	 
	Name of Entity	 	Chief Executive Office
	Diamond Resorts Holdings, LLC
	 	10600 West Charleston Boulevard
	 
	 	Las Vegas Nevada 89135
	 	 	 
	Diamond Resorts Parent, LLC
	 	10600 West Charleston Boulevard
	 
	 	Las Vegas, Nevada 89135

17

 

	 	(ii)	 	All locations where each of Holdings and the Company maintains any
books or records relating to any Accounts Receivable (with each location
at which chattel paper, if any, is kept being indicated by an “*”):

Location of Books or Records

	 	 	 	 	 
	Name of Entity	 	Address of books or records location	 	County
	Diamond Resort Holdings, LLC
	 	10600 West Charleston Boulevard

Las Vegas, Nevada 89135
	 	Clark
	 	 	 	 	 
	Diamond Resorts Parent, LLC
	 	10600 West Charleston Boulevard

Las Vegas, Nevada 89135
	 	Clark

	 	(iii)	 	The jurisdiction of formation of each of Holdings and the
Company that is a registered organization:

	 	 	 
	Name of Entity	 	Jurisdiction of Organization
	Diamond Resorts Holdings, LLC
	 	Nevada
	Diamond Resorts Parent, LLC
	 	Nevada

	 	(iv)	 	All locations where each of Holdings and the Company
maintains any Equipment or other Collateral are set forth:.

Location of Collateral

	 	 	 	 	 
	Name of Entity	 	Address of collateral location	 	County
	Diamond Resorts Holdings, LLC
	 	10600 West Charleston Boulevard
	 	Clark
	 
	 	Las Vegas, Nevada 89135	 	 
	 	 	 	 	 
	Diamond Resorts Parent, LLC
	 	10600 West Charleston Boulevard
	 	Clark
	 
	 	Las Vegas, Nevada 89135	 	 

	 	(v)	 	All the places of business of each of Holdings and the
Company not identified in paragraph (i), (ii), (iii) or (iv) above:

	 	 	 
	Name of Entity	 	Location of business
	N/A
	 	N/A

	 	(vi)	 	All names and addresses of all Persons, other than each of
Holdings and the Company, that have possession of any of the Collateral of
each of Holdings and the Company:

	 	 	 	 	 
	Name	 	Address	 	Collateral
	N/A
	 	N/A
	 	N/A

          C. Subsidiary Guarantor

	 	(i)	 	The chief executive office of each Subsidiary Guarantor is located at:

18

 

10600 West Charleston Boulevard, Las Vegas, Nevada 89135

	 	(ii)	 	All locations where each Subsidiary Guarantor maintains any
books or records relating to any Accounts Receivable (with each location at
which chattel paper, if any, is kept being indicated by an “*”):

Location of Books or Records

	 	 	 	 	 
	Name of Entity	 	Address of books or records location	 	County
	Each Subsidiary Guarantor in
	 	10600 West Charleston Boulevard
	 	Clark
	subsection (iii) immediately
	 	Las Vegas, NV 89135	 	 
	below	 	 	 	 

	 	(iii)	 	The jurisdiction of formation of each Subsidiary Guarantor
that is a registered organization:

	 	 	 
	Name of Entity	 	Jurisdiction of Organization
	1. AKGI Poipu Investments, Inc.

	 	CA
	2.
AKGI-St. Maarten N.V.

	 	DE
	3. Chestnut Farms, LLC

	 	NV
	4. Cumberland Gate, LLC

	 	DE
	5. Diamond Resorts Beach Group, LLC

	 	DE
	6. Diamond Resorts California Collection Development, LLC

	 	DE
	7. Diamond Resorts Centralized Services Company

	 	DE
	8. Diamond Resorts Citrus Share Holding, LLC

	 	DE
	9. Diamond Resorts Coral Sands Development, LLC

	 	DE
	10. Diamond Resorts Cypress Pointe I Development, LLC

	 	DE
	11. Diamond Resorts Cypress Pointe II Development, LLC

	 	DE
	12. Diamond Resorts Cypress Pointe III Development, LLC

	 	DE
	13. Diamond Resorts Daytona Development, LLC

	 	DE
	14. Diamond Resorts Developer and Sales Holding Company

	 	DE
	15. Diamond Resorts Epic Mortgage Holdings, LLC

	 	DE

19

 

	 	 	 
	Name of Entity	 	Jurisdiction of Organization
	16. Diamond Resorts Fall Creek Development, LLC

	 	DE
	17. Diamond Resorts Finance Holding Company

	 	DE
	18. Diamond Resorts Financial Services, Inc.

	 	NV
	19. Diamond Resorts Grand Beach I Development, LLC

	 	DE
	20. Diamond Resorts Grand Beach II Development, LLC

	 	DE
	21. Diamond Resorts Greensprings Development, LLC

	 	DE
	22. Diamond Resorts Hawaii Collection Development, LLC

	 	DE
	23. Diamond Resorts Hilton Head Development, LLC

	 	DE
	24. Diamond Resorts International Club, Inc.

	 	FL
	25. Diamond Resorts International Marketing, Inc.

	 	CA
	26. Diamond Resorts Las Vegas Development, LLC

	 	DE
	27. Diamond Resorts Management & Exchange Holding Company

	 	DE
	28. Diamond Resorts Management, Inc.

	 	AZ
	29. Diamond Resorts Mazatlan Land, LLC

	 	DE
	30. Diamond Resorts Mexico Share Holding, LLC

	 	DE
	31. Diamond Resorts Mortgage Holdings, LLC

	 	DE
	32. Diamond Resorts Palm Springs Development, LLC

	 	DE
	33. Diamond Resorts Poco Diablo Development, LLC

	 	DE
	34. Diamond Resorts Poipu Development, LLC

	 	DE
	35. Diamond Resorts Polo Development, LLC

	 	NV
	36. Diamond Resorts Port Royal Development, LLC

	 	DE
	37. Diamond Resorts Powhatan Development, LLC

	 	DE
	38. Diamond Resorts Residual Assets Development, LLC

	 	DE

20

 

	 	 	 
	Name of Entity	 	Jurisdiction of Organization
	39. Diamond Resorts Residual Assets Finance, LLC

	 	DE
	40. Diamond Resorts Residual Assets M&E, LLC

	 	DE
	41. Diamond Resorts Ridge on Sedona Development, LLC

	 	DE
	42. Diamond Resorts Ridge Pointe Development, LLC

	 	DE
	43. Diamond Resorts San Luis Bay Development, LLC

	 	DE
	44. Diamond Resorts Santa Fe Development, LLC

	 	DE
	45. Diamond Resorts Scottsdale Development, LLC

	 	DE
	46. Diamond Resorts Sedona Springs Development, LLC

	 	DE
	47. Diamond Resorts Sedona Summit Development, LLC

	 	DE
	48. Diamond Resorts St. Croix Development, LLC

	 	DE
	49. Diamond Resorts Steamboat Development, LLC

	 	DE
	50. Diamond Resorts Tahoe Beach & Ski Development, LLC

	 	DE
	51. Diamond Resorts U.S. Collection Development, LLC

	 	DE
	52. Diamond Resorts Villa Mirage Development, LLC

	 	DE
	53. Diamond Resorts Villas of Sedona Development, LLC

	 	DE
	54. Diamond Resorts West Maui Development, LLC

	 	DE
	55. Foster Shores, LLC

	 	MO
	56. George Acquisition Subsidiary, Inc.

	 	NV
	57. Ginger Creek, LLC

	 	DE
	58. Grand Escapes, LLC

	 	DE
	59. International Timeshares Marketing, LLC

	 	DE
	60. Lake Tahoe Resort Partners, LLC

	 	CA
	61. Mazatlan Development Inc.

	 	WA
	62. MMG Development Corp.

	 	FL

21

 

	 	 	 
	Name of Entity	 	Jurisdiction of Organization
	63. Poipu Resort Partners, L.P.

	 	HI
	64. Resort Management International, Inc.

	 	CA
	65. Resorts Development International, Inc.

	 	NV
	66. Sunterra Resort Rental Management, Inc.

	 	DE
	67. Walsham Lake, LLC

	 	MO
	68. West Maui Resort Partners, L.P.

	 	DE

	 	(iv)	 	All locations where each Subsidiary Guarantor
maintains any Equipment or other Collateral:

Location of Collateral

	 	 	 	 	 
	Name of Entity	 	Address of Collateral Location	 	County
	The Ridge on Sedona Golf

	 	Resort

55 Sun Ridge Circle

Sedona, Arizona 86351
	 	Yavapai
	 
	 	 	 	 
	Scottsdale Villa Mirage

	 	Resort:

7887 East Princess Blvd.

Scottsdale, Arizona 85255
	 	Maricopa
	 
	 	 	 	 
	 

	 	Undeveloped Land:

7887 East Princess Blvd.

Scottsdale, Arizona 85255	 	 
	 
	 	 	 	 
	Sedona Springs

	 	Resort: 

55 Northview Rd.

Sedona, Arizona 86336
	 	Yavapai
	 
	 	 	 	 
	Sedona Summit

	 	Resort: 

500 Navoti Dr.

Sedona, Arizona 86336
	 	Yavapai
	 
	 	 	 	 
	 

	 	Sales Center:

4055 Navoti Dr.

Sedona, Arizona 86336	 	 
	 
	 	 	 	 
	 

	 	Undeveloped Land:

500 Navoti Dr.

Sedona, Arizona 86336	 	 
	 
	 	 	 	 
	Tahoe Beach & Ski Club

	 	Resort: 

3601 Lake Tahoe Blvd.

S. Lake Tahoe, California 96150
	 	Eldorado
	 
	 	 	 	 
	Villas at Poco Diablo

	 	Resort:

1752 S. Highway 179

Sedona, Arizona 86336
	 	Coconino

22

 

	 	 	 	 	 
	Name of Entity	 	Address of Collateral Location	 	County
	Villas of Sedona

	 	Resort:

120 Kallof Place

Sedona, Arizona 86336
	 	Yavapai
	 
	 	 	 	 
	Grand Beach I

	 	Resort:

8309 Lake Bryan Beach Blvd.

Orlando, Florida 32821
	 	Orange
	 
	 	 	 	 
	 

	 	Sales Center:

8317 Lake Bryan Beach Blvd.

Orlando, Florida 32821	 	 
	 
	 	 	 	 
	Grand Beach II

	 	Resort: 

8309 Lake Bryan Beach Blvd.

Orlando, Florida 32821
	 	Orange
	 
	 	 	 	 
	 

	 	Sales Center:

8317 Lake Bryan Beach Blvd.

Orlando, Florida 32821	 	 
	 
	 	 	 	 
	 

	 	Undeveloped Land:

8309 Lake Bryan Beach Blvd.

Orlando, Florida 32821	 	 
	 
	 	 	 	 
	Kaanapali Beach Club

	 	Resort: 

104 Kaanapali Shores Place

Kaanapali, Maui, Hawaii 96761
	 	Maui
	 
	 	 	 	 
	Lake Tahoe Vacation Resort

	 	Resort:

901 Ski Run Blvd.

S. Lake Tahoe, California 96150
	 	Eldorado
	 
	 	 	 	 
	 

	 	Undeveloped Land:

901 Ski Run Blvd.

S. Lake Tahoe, California 96150	 	 
	 
	 	 	 	 
	The Point at Poipu

	 	Resort:

1613 Pe’e Road

Poipu, Kauai, Hawaii 96756
	 	Kauai

23

 

	 	 	 	 	 
	Name of Entity	 	Address of Collateral Location	 	County
	Greensprings Vacation Resort

	 	Resort: 

3500 Ludwell Parkway

Williamsburg, Virginia 23188
	 	James City
	 
	 	 	 	 
	 

	 	Sales Center:

6000 Easter Circle

Williamsburg, Virginia 23188	 	 
	 
	 	 	 	 
	 

	 	Undeveloped Land:

3500 Ludwell Parkway

Williamsburg, Virginia 23188	 	 
	 
	 	 	 	 
	Polynesian Isles

	 	Resort: 

3045 Polynesian Isles Blvd.

Kissimmee, Florida 34746
	 	Osceola
	 
	 	 	 	 
	The Historic Powhatan Resort

	 	Resort: 

3601 Ironbound Rd.

Williamsburg, Virginia 23188
	 	James City
	 
	 	 	 	 
	 

	 	Sales Center:

6000 Easter Circle

Williamsburg, Virginia 23188	 	 
	 
	 	 	 	 
	 

	 	Undeveloped Land:

3601 Ironbound Rd.

Williamsburg, Virginia 23188	 	 
	 
	 	 	 	 
	Royal Dunes at Port Royal

	 	Resort:

8 Wimbledon Court

Hilton Head, S. Carolina 29928
	 	Beauford
	 
	 	 	 	 
	Ridge Pointe

	 	Resort: 

455 Trameway Dr.

Stateline, Nevada 89449
	 	Douglas
	 
	 	 	 	 
	Bent Creek Golf Village

	 	Resort: 

3919 E. Parkway

Gatlinburg, Tennessee 37738
	 	Sevier
	 
	 	 	 	 
	 

	 	Undeveloped Land:

3919 E. Parkway

Gatlinburg, Tennessee 37738	 	 
	 
	 	 	 	 
	Cypress Pointe

	 	Resort: 

8651 Treasure Cay Lane

Orlando, Florida 32836
	 	Orange
	 
	 	 	 	 
	 

	 	Undeveloped Land:

8651 Treasure Cay Lane

Orlando, Florida 32836	 	 

24

 

	 	 	 	 	 
	Name of Entity	 	Address of Collateral Location	 	County
	Desert Paradise

	 	Resort: 

5165 S. Decatur Blvd.

Las Vegas, Nevada 89118
	 	Clark
	 
	 	 	 	 
	Daytona Beach Regency

	 	Resort: 

400 N. Atlantic Ave.

Daytona Beach, Florida 32118
	 	Volusia
	 
	 	 	 	 
	Island Links

	 	Resort: 

1 Coggins Point Road

Hilton Head, South Carolina

29928
	 	Beaufort
	 
	 	 	 	 
	London Bridge Resort

	 	Resort: 

1477 Queens Drive

Lake Havasu City, Arizona

86403
	 	Mohave
	 
	 	 	 	 
	Marquis Villas Resort

	 	Resort: 

140 South Calle Encilia

Palm Springs, California 92262
	 	Riverside
	 
	 	 	 	 
	Polo Towers Suites

	 	Resort: 

3745 Las Vegas Boulevard South

Las Vegas, Nevada 89109
	 	Clark
	 
	 	 	 	 
	Scottsdale Links Resort

	 	Resort:

16858 North Perimeter Drive

Scottsdale, Arizona 85260
	 	Maricopa
	 
	 	 	 	 
	The Suites at Fall Creek

	 	Resort: 

1A Fall Creek Drive

Branson, Missouri 65616
	 	Taney
	 
	 	 	 	 
	 

	 	Undeveloped Land:

1A Fall Creek Drive

Branson, Missouri 65616	 	 
	 
	 	 	 	 
	San Luis Bay Inn

	 	Resort: 

3254 Avila Beach Drive

Avila Beach, California 93424
	 	San Luis Obispo
	 
	 	 	 	 
	Villas at Polo Towers

	 	Resort: 

3745 Las Vegas Boulevard South

Las Vegas, Nevada 89109
	 	Clark
	 
	 	 	 	 
	Villas de Santa Fe

	 	Resort: 

400 Griffin St.

Santa Fe, New Mexico 87501
	 	Santa Fe

	 	(v)	 	All the places of business of each Subsidiary Guarantor
not identified in paragraph (i), (ii), (iii) or (iv) above:

25

 

	 	 	 
	Name of Entity	 	Location of business
	None.
	 	 

	 	(vi)	 	All names and addresses of all Persons other than each
Subsidiary Guarantor that have possession of any of the Collateral of each
Subsidiary Guarantor:

	 	 	 	 	 
	Name	 	Address	 	Collateral
	None.
	 	 	 	 

	3.	 	Unusual Transactions. All Accounts have been originated by the Issuer, Holdings,
the Company and Subsidiary Guarantors and all Inventory has been acquired by the Issuer,
Holdings, the Company and Subsidiary Guarantors in the ordinary course of business.
	 
	4.	 	File Search Reports. File search reports have been obtained from each Uniform
Commercial Code filing office identified with respect to the Issuer, Holdings, the Company and
each Subsidiary Guarantor in Section 2 hereof, and such search reports reflect no liens
against any of the Collateral other than those permitted under the Purchase Agreement.
	 
	5.	 	UCC Filings.

	 	A.	 	Financing statements in substantially the form set forth below have been
prepared for filing in the proper Uniform Commercial Code filing office in the
jurisdiction in which the Issuer is located and, to the extent any of the collateral
is comprised of fixtures, in the proper local jurisdiction, in each case as set forth
with respect to the Issuer in Section 2(A) hereof:
	 
	 	 	 	See Schedule 5(A) attached
	 
	 	B.	 	Financing statements in substantially the form set forth below have been
prepared for filing in the proper Uniform Commercial Code filing office in the
jurisdiction in which each of Holdings and the Company is located and, to the extent
any of the collateral is comprised of fixtures, in the proper local jurisdiction, in
each case as set forth with respect to such entity in Section 2(B) hereof:
	 
	 	 	 	See Schedule 5(B) attached
	 
	 	C.	 	Financing statements in substantially the form set forth below have been
prepared for filing in the proper Uniform Commercial Code filing office in the
jurisdiction in which each Subsidiary Guarantor is located and, to the extent any of
the collateral is comprised of fixtures, in the proper local jurisdiction, in each
case as set forth with respect to such Subsidiary Guarantor in Section 2(C) hereof:
	 
	 	 	 	See Schedule 5(C) attached

26

 

	6.	 	Schedule of Filings.

	 	A.	 	Listed below is a schedule setting forth, with respect to the filings
described in Section 5 above, each filing for the Issuer and the filing office in
which such filing is to be made:

	 	 	 	 	 
	Name	 	Filing	 	Filing Office
	Diamond Resorts Corporation

	 	UCC-1
	 	Maryland -
Department of
Assessments and
Taxation

	 	B.	 	Listed below is a schedule setting forth, with respect to the filings
described in Section 5 above, each filing for each of Holdings and the Company and
the filing office in which such filing is to be made:

	 	 	 	 	 
	Name	 	Filing	 	Filing Office
	Diamond Resorts Holdings, LLC
	 	UCC-1
	 	Nevada
	Diamond Resorts Parent, LLC
	 	UCC-1
	 	Nevada

	 	C.	 	Listed below is a schedule setting forth, with respect to the filings
described in Section 5 above, each filing for each Subsidiary Guarantor and the
filing office in which such filing is to be made:

	 	 	 	 	 	 	 	 	 
	Name	 	Filing	 	Filing Office
	1.

	 	AKGI Poipu Investments, Inc.
	 	UCC-1
	 	California
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	2.

	 	AKGI-St. Maarten N.V.
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	3.

	 	Chestnut Farms, LLC
	 	UCC-1
	 	Nevada
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	4.

	 	Cumberland Gate, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	5.

	 	Diamond Resorts Beach Group, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	6.

	 	Diamond Resorts California Collection
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	7.

	 	Diamond Resorts Centralized Services
Company
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	8.

	 	Diamond Resorts Citrus Share Holding,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	9.

	 	Diamond Resorts Coral Sands
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	10.

	 	Diamond Resorts Cypress Pointe I
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	11.

	 	Diamond Resorts Cypress Pointe II
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	12.

	 	Diamond Resorts Cypress Pointe III
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	13.

	 	Diamond Resorts Daytona
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State

27

 

	 	 	 	 	 	 	 	 	 
	Name	 	Filing	 	Filing Office
	14.

	 	Diamond Resorts Developer and Sales Holding
Company
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	15.

	 	Diamond Resorts Epic Mortgage Holdings,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	16.

	 	Diamond Resorts Fall Creek Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	17.

	 	Diamond Resorts Finance Holding Company
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	18.

	 	Diamond Resorts Financial Services, Inc.
	 	UCC-1
	 	Nevada
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	19.

	 	Diamond Resorts Grand Beach I Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	20.

	 	Diamond Resorts Grand Beach II Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	21.

	 	Diamond Resorts Greensprings Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	22.

	 	Diamond Resorts Hawaii Collection
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	23.

	 	Diamond Resorts Hilton Head Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	24.

	 	Diamond Resorts International Club, Inc.
	 	UCC-1
	 	Florida
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	25.

	 	Diamond Resorts International Marketing,
Inc.
	 	UCC-1
	 	California
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	26.

	 	Diamond Resorts Las Vegas Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	27.

	 	Diamond Resorts Management & Exchange
Holding Company
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	28.

	 	Diamond Resorts Management, Inc.
	 	UCC-1
	 	Arizona
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	29.

	 	Diamond Resorts Mazatlan Land, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	30.

	 	Diamond Resorts Mexico Share Holding,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	31.

	 	Diamond Resorts Mortgage Holdings, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	32.

	 	Diamond Resorts Palm Springs Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	33.

	 	Diamond Resorts Poco Diablo Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	34.

	 	Diamond Resorts Poipu Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	35.

	 	Diamond Resorts Polo Development, LLC
	 	UCC-1
	 	Nevada
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	36.

	 	Diamond Resorts Port Royal
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State

28

 

	 	 	 	 	 	 	 	 	 
	Name	 	Filing	 	Filing Office
	37.

	 	Diamond Resorts Powhatan Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	38.

	 	Diamond Resorts Residual Assets
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	39.

	 	Diamond Resorts Residual Assets
Finance, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	40.

	 	Diamond Resorts Residual Assets M&E,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	41.

	 	Diamond Resorts Ridge on Sedona
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	42.

	 	Diamond Resorts Ridge Pointe
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	43.

	 	Diamond Resorts San Luis Bay
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	44.

	 	Diamond Resorts Santa Fe Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	45.

	 	Diamond Resorts Scottsdale Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	46.

	 	Diamond Resorts Sedona Springs
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	47.

	 	Diamond Resorts Sedona Summit
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	48.

	 	Diamond Resorts St. Croix Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	49.

	 	Diamond Resorts Steamboat Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	50.

	 	Diamond Resorts Tahoe Beach & Ski
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	51.

	 	Diamond Resorts U.S. Collection
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	52.

	 	Diamond Resorts Villa Mirage
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	53.

	 	Diamond Resorts Villas of Sedona
Development, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	54.

	 	Diamond Resorts West Maui Development,
LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	55.

	 	Foster Shores, LLC
	 	UCC-1
	 	Missouri
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	56.

	 	George Acquisition Subsidiary, Inc.
	 	UCC-1
	 	Nevada
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	57.

	 	Ginger Creek, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	58.

	 	Grand Escapes, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State

29

 

	 	 	 	 	 	 	 	 	 
	Name	 	Filing	 	Filing Office
	59.

	 	International Timeshares Marketing, LLC
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	60.

	 	Lake Tahoe Resort Partners, LLC
	 	UCC-1
	 	California
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	61.

	 	Mazatlan Development Inc.
	 	UCC-1
	 	Washington
	 	Department of
Licensing
	 
	 	 	 	 	 	 	 	 
	62.

	 	MMG Development Corp.
	 	UCC-1
	 	Florida
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	63.

	 	Poipu Resort Partners, L.P.
	 	UCC-1
	 	Hawaii
	 	Bureau of
Conveyances
	 
	 	 	 	 	 	 	 	 
	64.

	 	Resort Management International, Inc.
	 	UCC-1
	 	California
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	65.

	 	Resorts Development International, Inc.
	 	UCC-1
	 	Nevada
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	66.

	 	Sunterra Resort Rental Management, Inc.
	 	UCC-1
	 	Delaware
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	67.

	 	Walsham Lake, LLC
	 	UCC-1
	 	Missouri
	 	Secretary of State
	 
	 	 	 	 	 	 	 	 
	68.

	 	West Maui Resort Partners, L.P.
	 	UCC-1
	 	Delaware
	 	Secretary of State

	7.	 	Stock Ownership and other Equity Interests. A true and correct list, set forth
below, of all the issued and outstanding stock, partnership interests, limited liability
company membership interests or other equity interest, whether held directly or indirectly,
of the Issuer, Holdings, the Company and each Subsidiary Guarantor, respectively, and the
record and beneficial owners of such stock, partnership interests, membership interests or
other equity interests. Also set forth is each equity investment, whether held directly or
indirectly, of the Issuer, Holdings, the Company and each Subsidiary Guarantor that
represents 50% or more of the equity of the entity in which such investment was made:

Issuer

	 	 	 	 	 	 	 
	Name	 	Outstanding Equity	 	Owner
	Diamond Resorts Corporation

	 	 	100	%	 	Diamond
Resorts Holdings,
LLC

Holdings and the Company

	 	 	 	 	 	 	 
	Name	 	Outstanding Equity	 	Owner
	Diamond Resorts Parent, LLC

	 	 	72.29	%*	 	Cloobeck Diamond Parent, LLC
	 
	 	 	 	 	 	 
	 

	 	 	3	%*	 	Other institutional investor
	 
	 	 	 	 	 	 
	 

	 	 	24.71	%*	 	DRP Holdco, LLC
	 
	 	 	 	 	 	 
	 

	 	* = as of the Closing Date
	 	 
	 
	 	 	 	 	 	 
	Diamond Resorts Holdings, LLC

	 	 	100	%	 	Diamond Resorts Parent, LLC

30

 

Subsidiary Guarantors

	 	 	 	 	 	 	 	 	 
	Name	 	Outstanding Equity	 	Owner
	1.

	 	AKGI Poipu Investments, Inc.
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	2.

	 	AKGI-St. Maarten N.V.
	 	 	100	%	 	Diamond Resorts Corporation
	 
	 	 	 	 	 	 	 	 
	3.

	 	Chestnut Farms, LLC
	 	 	100	%	 	Potter’s Mill, Inc.
	 
	 	 	 	 	 	 	 	 
	4.

	 	Cumberland Gate, LLC
	 	 	100	%	 	Potter’s Mill, Inc.
	 
	 	 	 	 	 	 	 	 
	5.

	 	Diamond Resorts Beach Group,
LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	6.

	 	Diamond Resorts California
Collection Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	7.

	 	Diamond Resorts Centralized
Services Company
	 	 	100	%	 	Diamond Resorts Corporation
	 
	 	 	 	 	 	 	 	 
	8.

	 	Diamond Resorts Citrus Share
Holding, LLC
	 	 	100	%	 	Diamond Resorts Corporation
	 
	 	 	 	 	 	 	 	 
	9.

	 	Diamond Resorts Coral Sands
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	10.

	 	Diamond Resorts Cypress Pointe I
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	11.

	 	Diamond Resorts Cypress Pointe
II Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	12.

	 	Diamond Resorts Cypress Pointe
III Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	13.

	 	Diamond Resorts Daytona
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	14.

	 	Diamond Resorts Developer and
Sales Holding Company
	 	 	100	%	 	Diamond Resorts Corporation
	 
	 	 	 	 	 	 	 	 
	15.

	 	Diamond Resorts Epic Mortgage
Holdings, LLC
	 	 	100	%	 	Diamond Resorts Finance Holding
Company
	 
	 	 	 	 	 	 	 	 
	16.

	 	Diamond Resorts Fall Creek
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	17.

	 	Diamond Resorts Finance Holding
Company
	 	 	100	%	 	Diamond Resorts Corporation
	 
	 	 	 	 	 	 	 	 
	18.

	 	Diamond Resorts Financial
Services, Inc.
	 	 	100	%	 	Diamond Resorts Finance Holding
Company
	 
	 	 	 	 	 	 	 	 
	19.

	 	Diamond Resorts Grand Beach I
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	20.

	 	Diamond Resorts Grand Beach II
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company

31

 

	 	 	 	 	 	 	 	 	 
	Name	 	Outstanding Equity	 	Owner
	21.

	 	Diamond Resorts
Greensprings
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	22.

	 	Diamond Resorts
Hawaii Collection
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	23.

	 	Diamond Resorts
Hilton Head Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	24.

	 	Diamond Resorts
International Club,
Inc.
	 	 	100	%	 	Diamond Resorts Management &
Exchange Holding Company
	 
	 	 	 	 	 	 	 	 
	25.

	 	Diamond Resorts
International Marketing,
Inc.
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	26.

	 	Diamond Resorts
Las Vegas Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	27.

	 	Diamond Resorts
Management & Exchange
Holding Company
	 	 	100	%	 	Diamond Resorts Corporation
	 
	 	 	 	 	 	 	 	 
	28.

	 	Diamond Resorts
Management, Inc.
	 	 	100	%	 	Diamond Resorts Management &
Exchange Holding Company
	 
	 	 	 	 	 	 	 	 
	29.

	 	Diamond Resorts
Mazatlan Land, LLC
	 	 	100	%	 	Mazatlan Development, Inc.
	 
	 	 	 	 	 	 	 	 
	30.

	 	Diamond Resorts
Mexico Share Holding,
LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	31.

	 	Diamond Resorts
Mortgage Holdings,
LLC
	 	 	2	%	 	Diamond Resorts Financial Services,
Inc.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	98	%	 	Diamond Resorts Finance Holding
Company
	 
	 	 	 	 	 	 	 	 
	32.

	 	Diamond Resorts
Palm Springs
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	33.

	 	Diamond Resorts
Poco Diablo Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	34.

	 	Diamond Resorts
Poipu Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	35.

	 	Diamond Resorts
Polo Development,
LLC
	 	 	95	%	 	Diamond Resorts Holdings, LLC
	 

	 	 	 	 	5	%	 	Diamond Resorts Las Vegas
Development, LLC
	 
	 	 	 	 	 	 	 	 
	36.

	 	Diamond Resorts
Port Royal Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	37.

	 	Diamond Resorts
Powhatan Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	38.

	 	Diamond Resorts
Residual Assets
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	39.

	 	Diamond Resorts
Residual Assets Finance,
LLC
	 	 	100	%	 	Diamond Resorts Finance Holding
Company

32

 

	 	 	 	 	 	 	 	 	 
	Name	 	Outstanding Equity	 	Owner
	40.

	 	Diamond Resorts Residual
Assets M&E, LLC
	 	 	100	%	 	Diamond Resorts Management &
Exchange Holding Company
	 
	 	 	 	 	 	 	 	 
	41.

	 	Diamond Resorts Ridge on
Sedona Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	42.

	 	Diamond Resorts Ridge
Pointe Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	43.

	 	Diamond Resorts San Luis
Bay Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	44.

	 	Diamond Resorts Santa Fe
Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	45.

	 	Diamond Resorts
Scottsdale Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	46.

	 	Diamond Resorts Sedona
Springs Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	47.

	 	Diamond Resorts Sedona
Summit Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	48.

	 	Diamond Resorts St.
Croix Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	49.

	 	Diamond Resorts
Steamboat Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	50.

	 	Diamond Resorts Tahoe
Beach & Ski Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	51.

	 	Diamond Resorts U.S.
Collection Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	52.

	 	Diamond Resorts Villa
Mirage Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	53.

	 	Diamond Resorts Villas
of Sedona Development,
LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	54.

	 	Diamond Resorts West
Maui Development, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	55.

	 	Foster Shores, LLC
	 	 	100	%	 	Potter’s Mill, Inc.
	 
	 	 	 	 	 	 	 	 
	56.

	 	George Acquisition
Subsidiary, Inc.
	 	 	100	%	 	Diamond Resorts Corporation
	 
	 	 	 	 	 	 	 	 
	57.

	 	Ginger Creek, LLC
	 	 	100	%	 	Potter’s Mill, Inc.
	 
	 	 	 	 	 	 	 	 
	58.

	 	Grand Escapes, LLC
	 	 	100	%	 	Diamond Resorts Management &
Exchange Holding Company
	 
	 	 	 	 	 	 	 	 
	59.

	 	International Timeshares
Marketing, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	60.

	 	Lake Tahoe Resort
Partners, LLC
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	61.

	 	Mazatlan Development Inc.
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company

33

 

	 	 	 	 	 	 	 	 	 
	Name	 	Outstanding Equity	 	Owner
	62.

	 	MMG Development Corp.
	 	 	100	%	 	Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	63.

	 	Poipu Resort Partners, L.P.
	 	 	1	%	 	GP: Diamond Resorts Poipu
Development, LLC
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	99	%	 	LP: Diamond Resorts Developer and
Sales Holding Company
	 
	 	 	 	 	 	 	 	 
	64.

	 	Resort Management International,
Inc.
	 	 	100	%	 	Diamond Resorts Management &
Exchange Holding Company
	 
	 	 	 	 	 	 	 	 
	65.

	 	Resorts Development International,
Inc.
	 	 	100	%	 	Diamond Resorts Residual Assets
Development, LLC
	 
	 	 	 	 	 	 	 	 
	66.

	 	Sunterra Resort Rental Management,
Inc.
	 	 	100	%	 	Diamond Resorts Management &
Exchange Holding Company
	 
	 	 	 	 	 	 	 	 
	67.

	 	Walsham Lake, LLC
	 	 	100	%	 	Potter’s Mill, Inc.
	 
	 	 	 	 	 	 	 	 
	68.

	 	West Maui Resort Partners, L.P.
	 	 	1	%	 	GP: Diamond Resorts West Maui
Development, LLC
	 
	 

	 	 	 	 	99	%	 	LP: Diamond Resorts Developer and Sales
Holding Company
	 
	 	 	 	 	 	 	 	 
	Diamond Resorts (Holdings) Limited	 	 	100	%	 	Diamond Resorts Corporation

	8.	 	Debt Instruments. A true and correct list, set forth below, of all promissory notes and
other evidence of indebtedness held by the Issuer, Holdings, the Company and each Subsidiary Guarantor,
respectively, that are required to be pledged under the Security Agreement, including all intercompany notes:

Issuer

	 	 	 	 	 	 	 
	 	 	Principal	 	 	 	 
	Issuer	 	Amount	 	Date of Note	 	Maturity Date
	Diamond Resorts Europe (Holding)
Ltd.

	 	£16 million (revolving)
	 	Amended and restated 3/7/07 and
amended 12/1/08
	 	12/16/2014
	 
	 	 	 	 	 	 
	Diamond Resorts Europe (Holding)
Ltd.

	 	£33 million (term)
	 	Amended and restated 3/7/07 and
amended 12/1/08
	 	12/16/2014

Holdings and the Company

	 	 	 
	Name	 	Debt Instrument
	Diamond Resorts Parent, LLC
	 	None.
	Diamond Resorts Holdings, LLC
	 	None.

34

 

Subsidiary Guarantors

	 	 	 
	Name	 	Debt Instrument
	NONE	 	 

	9.	 	Advances. A true and correct list is set forth below of all advances made by
the Issuer to any Subsidiary of the Issuer, or made by any Subsidiary of the Issuer to the
Issuer or to any other Subsidiary of the Issuer (other than those identified in Section 8
above), which advances will be on and after the date hereof evidenced by one or more
intercompany notes pledged to the Agent under the Security Agreement. A true and correct
list is also set forth of all unpaid intercompany transfers of goods sold and delivered by
or to the Issuer or any Subsidiary of the Issuer:

Issuer

	 	 	 
	Name	 	Advances
	NONE
	 	N/A

Holdings and the Company

	 	 	 
	Name	 	Advances
	NONE
	 	N/A

Subsidiary Guarantors

	 	 	 
	Name	 	Advances
	NONE
	 	N/A

	10.	 	Mortgage Filings. Listed below are schedules setting forth, with respect to
each mortgaged property, (a) the exact name of the Person that owns such property as such
name appears in its certificate of incorporation or other organizational document, (b) if
different from the name identified pursuant to clause (a), the exact name of the current
record owner of such property reflected in the records of the filing office for such
property identified pursuant to the following clause, (c) the filing office in which a
mortgage with respect to such property must be filed or recorded in order for the Agent to
obtain a perfected security interest therein, and (d) an estimate of the fair market value
of such property.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	(d) Book Value as
	Property	 	(a) Owner	 	(c) Filing Office	 	of 3/31/10
	NONE.

	 	 
	 	 
	 	 

35

 

	11.	 	Intellectual Property.

	 	A.	 	Issuer

	 	(i)	 	Set out below, in proper form for filing with the United
States Patent and Trademark Office, is a list setting forth all of the
Issuer’s Patents, Patent Licenses and Patent Applications, including the name
of the registered owner, type, registration or application number and the
expiration date (if already registered) of each Patent, Patent License and
Patent Application owned by the Issuer:

	 	 	 
	Name	 	Patents
	NONE	 	 

	 	(ii)	 	Set out below, in proper form for filing with the United States Patent
and Trademark Office, is a list setting forth all of the Issuer’s Trademarks,
Trademark Licenses and Trademark Applications, including the name of the
registered owner, the registration or application number and the expiration
date (if already registered) of each Trademark, Trademark License and Trademark
application owned by the Issuer:

	 	 	 
	Name	 	Trademarks
	NONE	 	 

	 	(iii)	 	Set out below, in proper form for filing with the United States
Copyright Office, is a schedule setting forth all of the Issuer’s Copyrights
(including the name of the registered owner, title, the registration number and
the expiration date (if already registered)), Copyright Licenses (including the
name of the registered owner, title, the registration number and the expiration
date (if already registered)) and Copyright Applications (including the name of
the registered owner and title) of each Copyright, Copyright License or
Copyright Application owned by the Issuer:

	 	 	 
	Name	 	Copyrights
	NONE	 	 

	 	B.	 	Holdings and the Company

	 	(i)	 	Set forth below, in proper form for filing with the United
States Patent and Trademark Office, is a list setting forth all of each of
Holdings’ and the Company’s Patents, Patent Licenses and Patent Applications,
including the name of the registered owner, type, registration or application
number and the expiration date (if already registered) of each Patent, Patent
License and Patent Application owned by either of Holdings or the Company:

	 	 	 
	Name	 	Patents
	N/A
	 	N/A

36

 

	 	(ii)	 	Set forth below, in proper form for filing with the United
States Patent and Trademark Office, is a list setting forth all of each of
Holdings’ and the Company’s Trademarks, Trademark Licenses and Trademark
Applications, including the name of the registered owner, the registration
or application number and the expiration date (if already registered) of
each Trademark, Trademark License and Trademark application owned by either
of Holdings or the Company:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	International	 	Registration	 	Registration
	Name	 	Trademarks	 	Class	 	Number	 	Date
	See Schedule I (attached)

	 	(iii)	 	Set forth below, in proper form for filing with the United States
Copyright Office, is a list setting forth all of each of Holdings’ and the
Company’s Copyrights (including the name of the registered owner, title, the
registration number and the expiration date (if already registered)), Copyright
Licenses (including the name of the registered owner, title, the registration
number and the expiration date (if already registered)) and Copyright
Applications (including the name of the registered owner and title) of each
Copyright, Copyright License or Copyright Application owned by either Holdings
or the Company:

	 	 	 
	Name	 	Copyrights
	N/A
	 	N/A

	 	C.	 	Subsidiary Guarantors

	 	(i)	 	Set forth below, in proper form for filing with the United States
Patent and Trademark Office, is a list setting forth all of each Subsidiary
Guarantor’s Patents, Patent Licenses and Patent Applications, including the
name of the registered owner, type, registration or application number and the
expiration date (if already registered) of each Patent, Patent License and
Patent Application owned by any Subsidiary Guarantor:

	 	 	 
	Name	 	Patents
	NONE	 	 

	 	(ii)	 	Set forth below, in proper form for filing with the United States
Patent and Trademark Office, is a list setting forth all of each Subsidiary
Guarantor’s Trademarks, Trademark Licenses and Trademark Applications,
including the name of the registered owner, the registration or application
number and the expiration date (if already registered) of each Trademark,
Trademark License and Trademark application owned by any Subsidiary Guarantor:

37

 

	 	 	 
	Name	 	Trademarks
	See Schedule I (attached)

	 	(iii)	 	Set forth below, in proper form for filing with the United States
Copyright Office, is a list setting forth all of each Subsidiary Guarantor’s
Copyrights (including the name of the registered owner, title and the
expiration date (if already registered)), Copyright Licenses (including the
name of the registered owner, title and the expiration date (if already
registered)) and Copyright Applications (including the name of the
registered owner and title) of each Copyright, Copyright License or
Copyright Application owned by any Subsidiary Guarantor:

	 	 	 
	Name	 	Copyrights
	NONE	 	 

	12.	 	Commercial Tort Claims

	 	A.	 	Set forth below is a true and correct list of commercial tort claims
in excess of $500,000 held by the Issuer, including a brief description thereof:

	 	 	 
	Claim	 	Amount
	NONE	 	 

	 	B.	 	Set forth below is a true and correct list of commercial tort claims in excess
of $500,000 held by either Holdings or the Company, including a brief description
thereof:

	 	 	 
	Claim	 	Amount
	NONE	 	 

	 	C.	 	Set forth below is a true and correct list of commercial tort claims in
excess of $500,000 held by any Subsidiary Guarantor, including a brief description
thereof:

	 	 	 
	Claim	 	Amount
	NONE

	13.	 	Deposit Accounts.

	 	A.	 	A true and correct list of deposit accounts maintained by the Issuer is set
forth below, including the name and address of the depositary institution, the type
of account and the account number:

	 	 	 
	Name	 	Deposit Accounts
	None.
	 	 

38

 

	 	B.	 	A true and correct list of deposit accounts maintained by each of
Holdings and the Company is set forth below, including the name and address of the
depositary institution, the type of account and the account number:

	 	 	 
	Name	 	Deposit Accounts
	NONE	 	 

	 	C.	 	A true and correct list of deposit accounts maintained by each Subsidiary
Guarantor, is set forth below, including the name and address of the depositary
institution, the type of account and the account number:

See Schedule II (attached)

	14.	 	Securities Accounts.

	 	A.	 	A true and correct list of securities accounts maintained by the Issuer is
set forth below, including the name and address of the intermediary institution, the
type of account and the account number:

	 	 	 
	Name	 	Securities Accounts
	N/A
	 	None

	 	B.	 	A true and correct list of securities accounts maintained by each of Holdings
and the Company is set forth below, including the name and address of the
intermediary institution, the type of account and the account number:

	 	 	 
	Name	 	Securities Accounts
	N/A
	 	N/A

	 	C.	 	A true and correct list of securities accounts maintained by each Subsidiary
Guarantor is set forth below, including the name and address of the intermediary
institution, the type of account and the account number:

See Schedule II (attached)

[remainder of page intentionally blank]

39

 

     IN WITNESS WHEREOF, the undersigned have duly executed this Perfection Certificate
on this _______ day of August, 2010.

	 	 	 	 	 	 	 

	 	 	DIAMOND RESORTS CORPORATION,
 a Maryland
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

40Exhibit 10.15

Exhibit 10.15

CONTRIBUTION AGREEMENT

This Contribution Agreement, dated as of March 7, 2011 (this “Agreement”), is made and entered
into by and between Hicks Acquisition Company II, Inc. (the “Company”) and HH-HACII, L.P., a
Delaware limited partnership (the “Sponsor”).

RECITALS

WHEREAS, on October 14, 2010, the Company consummated an underwritten initial public offering
(the “Offering”) of 15,000,000 units (“Units”), each Unit consisting of one share of common stock,
par value $0.0001 per share (“Common Stock”), and one warrant to purchase one share of Common
Stock, pursuant to a registration statement on Form S-1 and a prospectus filed with the Securities
and Exchange Commission;

WHEREAS, in connection with the Offering, the Company also granted to the underwriters of the
Offering (the “Underwriters”) a 45-day option to purchase up to an additional 2,250,000 Units to
cover any over-allotments (the “Over-Allotment Option”);

WHEREAS, the Sponsor is the holder of 2,439,644 shares of Common Stock, which it acquired in a
private transaction with the Company prior to the consummation of the Offering (the “Founder
Shares”), a portion of which are subject to forfeiture in the event the sales price of the Common
Stock does not achieve certain performance benchmarks (the “Founder Earnout Shares”);

WHEREAS, as a condition to the closing of the Offering, up to 318,215 Founder Shares (which
includes up to 63,644 Founder Earnout Shares) are subject to forfeiture by the Sponsor if the
Underwriters do not exercise the Over-Allotment Option; and

WHEREAS, the Underwriters have notified the Company that they will not exercise the
Over-Allotment Option and, as a result, the Sponsor wishes to return to the Company for
cancellation 318,215 Founder Shares (which includes 63,644 Founder Earnout Shares).

STATEMENT OF AGREEMENT

NOW, THEREFORE, in consideration of the premises, representations, warranties and the mutual
covenants contained in this Agreement, and for other good and valuable consideration, the receipt,
sufficiency and adequacy of which are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

Section 1 Surrender of Founder Shares. The Sponsor hereby assigns and surrenders to
the Company for cancellation 318,215 Founder Shares (which includes 63,644 Founder Earnout Shares).
After giving effect to the cancellation of such shares, the Sponsor hereby acknowledges that it
holds 2,121,429 Founder Shares (which includes 424,285 Founder Earnout Shares).

 

 

 

Section 2 No Conflicts. Each party hereto represents and warrants that neither the
execution and delivery of this Agreement by such party, nor the consummation or performance by such
party of any of transactions contemplated hereby, will with or without notice or lapse of
time, constitute, create or result in a breach or violation of, default under, loss of benefit
or right under or acceleration of performance of any obligation required under any agreement to
which it is a party.

Section 3 Miscellaneous. This Agreement, together with the certificates, documents,
instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and
understanding of the parties hereto in respect of its subject matter. This Agreement may be
executed in two or more counterparts, each of which will be deemed an original but all of which
together will constitute one and the same instrument. This Agreement may not be amended, modified
or waived as to any particular provision, except by a written instrument executed by all parties
hereto. Except as otherwise provided herein, no party hereto may assign this Agreement or any of
its rights, interests, or obligations hereunder without the prior written consent of the other
party.

[SIGNATURE PAGE FOLLOWS]

 

 

 

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

	 	 	 	 	 	 	 	 	 	 	 
	 	 	SPONSOR:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	HH-HACII, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	HH-HACII GP, LLC,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By: 	 	/s/ Thomas O. Hicks	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Name:	 	Thomas O. Hicks	 	 
	 
	 	 	 	 	Title:	 	Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	HICKS ACQUISITION COMPANY II, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	By: 	 	/s/ Christina Weaver Vest	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Name:	 	Christina Weaver Vest
	 
	 	 	 	 	Title:	 	President, Chief Executive Officer and
	 
	 	 	 	 	 	 	Chief Financial Officer

Signature Page to Contribution Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]