Document:

exv4w1

Exhibit 4.1

EXECUTED VERSION

DIAMOND RESORTS CORPORATION,

as Issuer,

DIAMOND RESORTS PARENT, LLC,

as the Company,

DIAMOND RESORTS HOLDINGS, LLC,

as Intermediate Holdco,

the SUBSIDIARY GUARANTORS named herein,

as Subsidiary Guarantors,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee and Collateral Agent

 

INDENTURE

Dated as of August 13, 2010

 

12.00% Senior Secured Notes due 2018

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I

	 
	 	 	 	 
	Definitions and Incorporation by Reference

	 
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	1	 
	SECTION 1.02. Other Definitions
	 	 	32	 
	SECTION 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	34	 
	SECTION 1.04. Rules of Construction
	 	 	35	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	The Notes

	 
	 	 	 	 
	SECTION 2.01. Form and Dating
	 	 	36	 
	SECTION 2.02. Execution and Authentication
	 	 	36	 
	SECTION 2.03. Registrar and Paying Agent
	 	 	36	 
	SECTION 2.04. Paying Agent To Hold Money in Trust
	 	 	37	 
	SECTION 2.05. Holder Lists
	 	 	37	 
	SECTION 2.06. Transfer and Exchange
	 	 	37	 
	SECTION 2.07. Replacement Notes
	 	 	38	 
	SECTION 2.08. Outstanding Notes
	 	 	38	 
	SECTION 2.09. Temporary Notes
	 	 	38	 
	SECTION 2.10. Cancellation
	 	 	38	 
	SECTION 2.11. Registered Holders
	 	 	39	 
	SECTION 2.12. CUSIP Numbers, ISINs, etc
	 	 	39	 
	SECTION 2.13. Issuance of Additional Notes
	 	 	39	 
	SECTION 2.14. Defaulted Interest
	 	 	39	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	Redemption

	 
	 	 	 	 
	SECTION 3.01. Notices to Trustee
	 	 	40	 
	SECTION 3.02. Selection of Notes to Be Redeemed
	 	 	40	 
	SECTION 3.03. Notice of Redemption
	 	 	40	 
	SECTION 3.04. Effect of Notice of Redemption
	 	 	40	 
	SECTION 3.05. Deposit of Redemption Price
	 	 	41	 
	SECTION 3.06. Notes Redeemed in Part
	 	 	41	 
	SECTION 3.07. Optional Redemption
	 	 	41	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IV

	 
	 	 	 	 
	Covenants

	 
	 	 	 	 
	SECTION 4.01. Payment of Notes
	 	 	42	 
	SECTION 4.02. SEC Reports
	 	 	42	 
	SECTION 4.03. Limitation on Indebtedness
	 	 	43	 
	SECTION 4.04. Limitation on Restricted Payments
	 	 	46	 
	SECTION 4.05. Dividend and Other Payment Restrictions Affecting Subsidiaries
	 	 	51	 
	SECTION 4.06. Limitation on Asset Sales
	 	 	54	 
	SECTION 4.07. Limitation on Affiliate Transactions
	 	 	56	 
	SECTION 4.08. Limitation on Line of Business
	 	 	58	 
	SECTION 4.09. Change of Control
	 	 	58	 
	SECTION 4.10. Offer to Purchase with Excess Cash Flow
	 	 	59	 
	SECTION 4.11. Offer to Purchase with Proceeds of Certain Equity Offerings
	 	 	61	 
	SECTION 4.12. Limitation on Liens
	 	 	62	 
	SECTION 4.13. Additional Guarantors
	 	 	62	 
	SECTION 4.14. Impairment of Security Interest
	 	 	63	 
	SECTION 4.15. Sale/Leaseback Transactions
	 	 	64	 
	SECTION 4.16. Further Instruments and Acts
	 	 	65	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	Successors

	 
	 	 	 	 
	SECTION 5.01. Mergers or Asset Transfers
	 	 	65	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	Defaults and Remedies

	 
	 	 	 	 
	SECTION 6.01. Events of Default
	 	 	68	 
	SECTION 6.02. Acceleration
	 	 	70	 
	SECTION 6.03. Waiver of Past Defaults
	 	 	71	 
	SECTION 6.04. Other Remedies
	 	 	71	 
	SECTION 6.05. Compliance Certificate
	 	 	71	 
	SECTION 6.06. Control by Majority
	 	 	72	 
	SECTION 6.07. Limitation on Suits
	 	 	72	 
	SECTION 6.08. Rights of Holders to Receive Payment
	 	 	73	 
	SECTION 6.09. Collection Suit by Trustee
	 	 	73	 
	SECTION 6.10. Trustee May File Proofs of Claim
	 	 	73	 
	SECTION 6.11. Priorities
	 	 	73	 
	SECTION 6.12. Undertaking for Costs
	 	 	74	 
	SECTION 6.13. Waiver of Stay or Extension Laws
	 	 	74	 

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	 	 	Page	 
	ARTICLE VII

	 
	 	 	 	 
	Trustee

	 
	 	 	 	 
	SECTION 7.01. Duties of Trustee
	 	 	74	 
	SECTION 7.02. Rights of Trustee
	 	 	75	 
	SECTION 7.03. Individual Rights of Trustee
	 	 	77	 
	SECTION 7.04. Trustee’s Disclaimer
	 	 	77	 
	SECTION 7.05. Notice of Defaults
	 	 	77	 
	SECTION 7.06. Reports by Trustee to Holders
	 	 	77	 
	SECTION 7.07. Compensation and Indemnity
	 	 	77	 
	SECTION 7.08. Replacement of Trustee
	 	 	78	 
	SECTION 7.09. Successor Trustee by Merger
	 	 	79	 
	SECTION 7.10. Eligibility; Disqualification
	 	 	79	 
	SECTION 7.11. Preferential Collection of Claims Against Issuer
	 	 	79	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	Discharge of Indenture; Defeasance

	 
	 	 	 	 
	SECTION 8.01. Satisfaction and Discharge
	 	 	80	 
	SECTION 8.02. Legal Defeasance and Covenant Defeasance
	 	 	81	 
	SECTION 8.03. Conditions to Defeasance
	 	 	81	 
	SECTION 8.04. Application of Trust Money
	 	 	83	 
	SECTION 8.05. Repayment to Company
	 	 	83	 
	SECTION 8.06. Indemnity for Government Securities
	 	 	83	 
	SECTION 8.07. Reinstatement
	 	 	83	 
	 
	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 
	Amendments

	 
	 	 	 	 
	SECTION 9.01. Without Consent of Holders
	 	 	83	 
	SECTION 9.02. With Consent of Holders
	 	 	84	 
	SECTION 9.03. Notice of Amendments
	 	 	86	 
	SECTION 9.04. Compliance with Trust Indenture Act
	 	 	86	 
	SECTION 9.05. Revocation and Effect of Consents and Waivers
	 	 	86	 
	SECTION 9.06. Notation on or Exchange of Notes
	 	 	87	 
	SECTION 9.07. Trustee To Sign Amendments
	 	 	87	 
	SECTION 9.08. Payment for Consent
	 	 	87	 
	 
	 	 	 	 
	ARTICLE X

	 
	 	 	 	 
	Guarantees

	 
	 	 	 	 
	SECTION 10.01. Guarantees
	 	 	87	 
	SECTION 10.02. Limitation on Liability
	 	 	89	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 10.03. Successors and Assigns
	 	 	89	 
	SECTION 10.04. No Waiver
	 	 	90	 
	SECTION 10.05. Modification
	 	 	90	 
	SECTION 10.06. Release of a Subsidiary Guarantor
	 	 	90	 
	SECTION 10.07. Release of the Company’s and the Intermediate Holdco’s Notes
Guarantee
	 	 	91	 
	SECTION 10.08. Contribution
	 	 	91	 
	SECTION 10.09. Non-Impairment
	 	 	91	 
	 
	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 
	Security Documents

	 
	 	 	 	 
	SECTION 11.01. Collateral and Security Documents
	 	 	91	 
	SECTION 11.02. Release of Collateral
	 	 	92	 
	SECTION 11.03. After Acquired Property
	 	 	93	 
	SECTION 11.04. Certificates and Opinions
	 	 	93	 
	SECTION 11.05. Use of Trust Monies
	 	 	94	 
	SECTION 11.06. Further Assurances
	 	 	94	 
	 
	 	 	 	 
	ARTICLE XII

	 
	 	 	 	 
	Miscellaneous

	 
	 	 	 	 
	SECTION 12.01. Trust Indenture Act Controls
	 	 	94	 
	SECTION 12.02. Notices
	 	 	94	 
	SECTION 12.03. Communication by Holders with Other Holders
	 	 	96	 
	SECTION 12.04. Certificate and Opinion as to Conditions Precedent
	 	 	96	 
	SECTION 12.05. Statements Required in Certificate or Opinion
	 	 	96	 
	SECTION 12.06. When Notes Disregarded
	 	 	96	 
	SECTION 12.07. Rules by Trustee, Paying Agent and Registrar
	 	 	97	 
	SECTION 12.08. Legal Holidays
	 	 	97	 
	SECTION 12.09. Governing Law
	 	 	97	 
	SECTION 12.10. No Recourse Against Others
	 	 	97	 
	SECTION 12.11. Successors
	 	 	97	 
	SECTION 12.12. Multiple Originals
	 	 	97	 
	SECTION 12.13. Table of Contents; Headings
	 	 	97	 
	SECTION 12.14. Severability
	 	 	98	 
	SECTION 12.15. No Adverse Interpretation of Other Agreements
	 	 	98	 
	SECTION 12.16. U.S.A. Patriot Act
	 	 	98	 
	SECTION 12.17. Force Majeure
	 	 	98	 
	 
	 	 	 	 
	Rule 144A/Regulation S Appendix
	 	 	 	 
	 
	 	 	 	 
	Exhibit I to Appendix — Form of Initial Note
	 	 	 	 
	 
	 	 	 	 
	Exhibit II to Appendix — Form of Exchange Note or Private Exchange Note
	 	 	 	 

iv

 

Exhibit III to Appendix — Form of Transferee Letter of Representations

Exhibit A — Form of Pari Passu Intercreditor Agreement

Exhibit B — Form of Junior Lien Intercreditor Agreement

v

 

          INDENTURE dated as of August 13, 2010, among DIAMOND RESORTS
CORPORATION, a Maryland corporation (the “Issuer”), DIAMOND
RESORTS PARENT, LLC, a Nevada limited liability company (the
“Company”), DIAMOND RESORTS HOLDINGS, LLC, a Nevada limited
liability company (“Intermediate Holdco”), the SUBSIDIARY
GUARANTORS (as defined below) listed on the signature pages hereto
and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association, as trustee, and WELLS FARGO BANK, NATIONAL ASSOCIATION,
a national banking association, as collateral agent.

          Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders:

ARTICLE I

Definitions and Incorporation by Reference

          SECTION 1.01. Definitions.

          “Acquired Indebtedness” means, with respect to any specified Person, (i) Indebtedness
of any other Person existing at the time such other Person is merged with or into or became a
Subsidiary of such specified Person, including Indebtedness incurred in connection with, or in
contemplation of, such other Person merging with or into or becoming a Subsidiary of such specified
Person, and (ii) Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

          “Additional Notes” means Notes issued under this Indenture after the Issue Date and
in compliance with Section 2.13, it being understood that any Notes issued in exchange for or
replacement of any Initial Note issued on the Issue Date shall not be an Additional Note,
including any such Notes issued pursuant to a Registration Rights Agreement (as defined in the
Appendix).

          “Adjusted EBITDA” for any period means the sum of Consolidated Net Income, plus the
following to the extent deducted in calculating such Consolidated Net Income:

     (i) all income tax expense (benefit) for such period, including any
applicable amounts distributed to a Company Holder pursuant to Section 4.04(b)(ix)
so deducted; plus

     (ii) Consolidated Interest Expense for such period; plus

     (iii) depreciation and amortization for such period; plus

     (iv) vacation interest cost of sales for such period; plus

 

 

     (v) loss on extinguishment of debt for such period; plus

     (vi) impairments and other write-offs for such period; plus

     (vii) loss on the sale of assets for such period; plus

     (viii) amortization of loan origination costs for such period; plus

     (ix) amortization of portfolio discount for such period; plus

     (x) all other non-cash charges for such period (excluding any such non-cash charge
to the extent that it represents an accrual of or reserve for cash expenditures in any
future period); less

     (xi) gain on the sale of assets for such period; less

     (xii) amortization of portfolio premium for such period; less

     (xiii) all non-cash items of income for such period (excluding any non-cash accruals
of revenue in the ordinary course of business to the extent required by accrual-based
accounting).

Notwithstanding the foregoing, items specified in clauses (i) and (iii) through (xiii) above
that are attributable to a Restricted Subsidiary shall be added to Consolidated Net Income to
compute Adjusted EBITDA only to the extent (and in the same proportion, including by reason of
minority interests) that such items of such Restricted Subsidiary were included in calculating
Consolidated Net Income and only, with respect to items (i) and (iii) through (x), if a
corresponding amount would be permitted at the date of determination to be dividended to the
Company by such Restricted Subsidiary without prior approval (that has not been obtained), pursuant
to the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes,
rules and governmental regulations applicable to such Restricted Subsidiary or its stockholders.

          “Affiliate” of any Person means (i) any other Person which directly, or indirectly
through one or more intermediaries, controls such Person or (ii) any other Person which directly,
or indirectly through one or more intermediaries, is controlled by or is under common control with
such Person. As used herein, the term “control” means possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a Person, whether through
the ownership of voting securities, by contract or otherwise. For purposes of Section 4.07, no (1)
homeowners’ association at a property at which the Company or its Subsidiaries either have sold
Vacation Interests or acts as management company or (2) collection holding real estate
interests underlying Points shall be deemed to be an Affiliate of the Company or any Restricted
Subsidiary.

          “Applicable Premium” means, with respect to any Note on any Redemption
Date, the greater of:

2

 

     (i) 1.0% of the principal amount of such Note; and

     (ii) the excess, if any, of (l) the present value at such Redemption Date of (x) the
redemption price of such Note on August 15, 2014 (such redemption price as set forth in
Section 3.07(b)), plus (y) all required remaining interest payments due on such Note
through August 15, 2014 (but excluding accrued but unpaid interest to such Redemption Date),
computed using a discount rate equal to the Treasury Rate as of such Redemption Date plus
50 basis points; over (2) the principal amount of such Note.

     “Applicable Senior Indebtedness” means

     (i) in respect of any asset that is the subject of an Asset Sale at a time when such
asset is included in the Collateral, other Indebtedness that is secured at such time by a
Permitted Collateral Lien on such asset;

     (ii) in respect of any asset that is the subject of an Asset Sale at a time when such
asset is owned, directly or indirectly, by a Restricted Subsidiary that is not a Subsidiary
Guarantor but the Capital Stock of which is included in the Collateral, other Indebtedness
that is secured at such time by a Permitted Collateral Lien on such Capital Stock; or

     (iii) in respect of any other asset (including any asset previously constituting
Collateral that has been released from the Liens securing the Notes and Guarantees),
Indebtedness that is not a Subordinated Obligation.

     “Asset Sale” means:

     (i) the sale, lease, conveyance or other disposition of any assets or rights
(including by way of a sale and leaseback) by the Company or any Restricted Subsidiary to
any Person other than the Company or any Restricted Subsidiary other than in the ordinary
course of business (provided that the sale, lease, conveyance or other disposition of all
or substantially all of the assets of the Company and the Restricted Subsidiaries, taken
as a whole, shall be governed by the provisions set forth in Sections 4.09 or 5.01 and not
by those set forth in Section 4.06);

     (ii) the issue or sale by the Company or any Restricted Subsidiaries to any Person
(other than the Company or any Restricted Subsidiaries) of Equity Interests of any of the
Company’s Subsidiaries, and

     (iii) the issue or sale by the Company or any Restricted Subsidiaries to any Person
(other than the Company or any Restricted Subsidiaries) of Equity Interests of the Issuer
or any Subsidiary Guarantor;

3

 

in the case of either clause (i) or (ii), whether in a single transaction or a series of
related transactions that have a Fair Market Value in excess of $1,000,000 or for net proceeds in
excess of $1,000,000.

          Notwithstanding the foregoing, the term “Asset Sale” shall not include:

     (i) a disposition that constitutes a Restricted Payment (or would constitute a
Restricted Payment but for the exclusions from the definition thereof) and that is not
prohibited by Section 4.04;

     (ii) the transfer of Timeshare Loans and related rights and assets in
connection with any Permitted Securitization;

     (iii) the disposition of cash or Cash Equivalents;

     (iv) terminations of Hedging Obligations;

     (v) any financing transaction with respect to assets or rights of the

     Company or any Restricted Subsidiary, including any sale and leaseback of assets or
rights not prohibited by Sections 4.03 or 4.12;

     (vi) any surrender or waiver of contract rights or a settlement, release or
surrender of contract, tort or other claims of any kind; and

     (vii) the grant of any Lien not prohibited by this Indenture and any
foreclosure or exercise in respect thereof.

          “Attributable Debt” in respect of a Sale/Leaseback Transaction means, as at the time
of determination, the present value (discounted at the interest rate borne by the Notes, compounded
annually) of the total obligations of the lessee for rental payments during the remaining term of
the lease included in such Sale/Leaseback Transaction (including any period for which such lease
has been extended); provided, however, that if such Sale/Leaseback Transaction results in a Capital
Lease Obligation, the amount of Indebtedness represented thereby shall be determined in accordance
with the definition of “Capital Lease Obligation.”

          “Average Life” means, as of the date of determination, with respect to any
Indebtedness, the quotient obtained by dividing:

     (i) the sum of the products of the number of years from the date of determination
to the date of each successive scheduled principal payment of or redemption or similar
payment with respect to such Indebtedness multiplied by the amount of such payment by

          (ii) the sum of all such payments.

4

 

          “Banking Product Obligations” means any obligations of the Company or any Restricted
Subsidiary owed to any Person in respect of treasury management services (including services in
connection with operating, collections, payroll, trust or other depository or disbursement
accounts, including automated clearinghouse, e-payable, electronic funds transfer, wire transfer,
controlled disbursement, overdraft, depositary, information reporting, lock-box and stop payment
services), commercial credit card and merchant card services, stored valued card services, other
cash management services, lock-box leases and other banking products or services related to any of
the foregoing.

          “Board of Directors” means, as to any Person, the board of managers, board of
directors or other similar body or Person performing a similar function or any duly authorized
committee thereof. Unless otherwise specified, “Board of Directors” will mean the Board of
Directors of the Company.

          “Business Day” means each day that is not a Saturday, Sunday or other day on which
banking institutions in New York, New York are authorized or required by law to close.

          “Capital Expenditures” means, for any period, the additions to property, plant and
equipment and other capital expenditures (including acquisitions) of the Company and its Restricted
Subsidiaries that are (or should be) set forth in a consolidated statement of cash flows of the
Company for such period prepared in accordance with GAAP.

          “Capital Lease Obligation” means, at the time any determination thereof is to be made,
the amount of the liability in respect of a capital lease that would at such time be required to be
capitalized on a balance sheet in accordance with GAAP.

          “Capital Stock” means (i) in the case of a corporation, corporate stock, (ii) in the
case of an association or business entity, any and all shares, interests, participations, rights or
other equivalents (however designated) of corporate stock, (iii) in the case of a partnership or
limited liability company, partnership or membership interests (whether general or limited) and
(iv) any other interest or participation that confers on a Person the right to receive a share of
the profits and losses of, or distributions of assets of, the issuing Person.

          “Cash Equivalents” means:

     (i) obligations (1) issued or directly and unconditionally guaranteed as to interest
and principal by the United States government or (2) issued by any agency of the United
States government the obligations of which are backed by the full faith and credit of the
United States, in each case maturing within 12 months after acquisition thereof, or
certificates representing an ownership interest in any such obligations;

     (ii) securities issued or fully guaranteed by any state of the United States or any
political subdivision of any such state or any public instrumentality

5

 

thereof, in each case maturing within one year after acquisition thereof and having,
at the time of acquisition, a rating of at least A-1 from S&P or at least P-1 from Moody’s;

     (iii) demand and time deposit accounts, certificates of deposit and money market
deposits maturing within one year of the date of acquisition thereof issued by a bank or
trust company which is organized under the laws of the United States of America, any state
thereof or any foreign country recognized by the United States of America, and which bank or
trust company has capital, surplus and undivided profits aggregating in excess of
$50,000,000 (or the foreign currency equivalent thereof) and has outstanding debt which is
rated “A” (or such similar equivalent rating) or higher by at least one of Moody’s or S&P or
any money market fund sponsored by a registered broker dealer or mutual fund distributor;

     (iv) repurchase obligations for underlying securities of the type described in clauses
(ii) and (iii) of this definition entered into with any financial institution meeting the
qualifications specified in such clause (iii);

     (v) commercial paper, maturing not more than one year after the date of acquisition,
issued by a corporation (other than an Affiliate of the Company) organized and in
existence under the laws of the United States of America or any foreign country recognized
by the United States of America with a rating at the time at which any investment therein
is made of “P-1” (or higher) according to Moody’s or “A-1”  (or higher) according to S&P;

     (vi) interests in any investment company or money market fund that invests
substantially all of its assets in instruments of the types described in clauses (i)
through (v) of this definition; and

     (vii) to the extent held by a Foreign Subsidiary, other short-term Investments
utilized by such Foreign Subsidiary in accordance with normal investment practices for
cash management in Investments of a type analogous to those described in clauses (i)
through (vi) of this definition.

          “Change of Control” means the occurrence of any of the following:

     (i) the sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Company and the Restricted Subsidiaries taken as a
whole to any “person” (as such term is used in Section 13(d)(3) of the Exchange Act) other
than in the ordinary course of business;

     (ii) the adoption of a plan relating to the liquidation or dissolution of the
Company;

     (iii) any “person” (as defined above), other than one or more Permitted Holders,
is or becomes the “beneficial owner” (as such term is defined in Rule

6

 

13d-3 and Rule 13d-5 under the Exchange Act, except that a person shall be deemed to
have “beneficial ownership” of all securities that such person has the right to acquire,
whether such right is currently exercisable or is exercisable only upon the occurrence of
a subsequent condition), directly or indirectly, of more than 50.0% of the Voting Stock of
the Company (measured by voting power rather than number of shares); or

     (iv) the Company consolidates with, or merges with or into, any Person (other than a
Permitted Holder), or any Person (other than a Permitted Holder) consolidates with, or
merges with or into, the Company, in any such event pursuant to a transaction in which any
of the outstanding Voting Stock of the Company is converted into or exchanged for cash,
securities or other property, other than any such transaction where the Voting Stock of
the Company outstanding immediately prior to such transaction is converted into or
exchanged for Voting Stock (other than Disqualified Stock) of the surviving or transferee
Person constituting a majority of the outstanding shares of such Voting Stock of such
surviving or transferee Person (immediately after giving effect to such issuance).

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Collateral” means all the collateral described in the Security Documents.

          “Collateral Agent” means Well Fargo Bank, National Association, in its capacity as
the collateral agent under the Security Documents, and any successor thereto in such capacity.

          “Company” means Diamond Resorts Parent, LLC and its successors and assigns.

          “Company Equity Plan” means any management equity or stock option or ownership plan
or any other management or employee benefit plan of the Company or any Subsidiary of the Company.

          “Concurrent Equity Transaction” means the transaction described in the Offering
Circular and anticipated to close on the Issue Date pursuant to which an equity investment is
made in the Company and the proceeds therefrom are used to acquire and retire another equity
interest in the Company.

          “Conduit Facility” means the borrowing facilities, as amended from time to time,
pursuant to which Diamond Resorts Issuer 2008 LLC is able to obtain borrowings evidenced by its
secured vacation interest receivable-backed variable funding notes designated Diamond Resorts
Issuer 2008 LLC, Variable Funding Notes.

          “Consolidated Change in Working Capital” means, for any period, (i) the provision for
uncollectible vacation interest revenue as set forth in a consolidated statement of operations for
such period, less (ii) vacation interest cost of sales as set forth

7

 

in a consolidated statement of operations for such period, plus (iii) the provision of income
taxes as set forth in a consolidated statement of operations for such period, if any, less (iv) the
benefit for income taxes as set forth in a consolidated statement of operations for such period, if
any, less (v) payments on notes payable as set forth in a consolidated statement of cash flows for
such period, plus (vi) borrowings on notes payable as set forth in a consolidated statement of cash
flows for such period, plus (vii) the aggregate change, if positive, in (a) mortgages and contracts
receivable, (b) unsold vacation interests, net, (c) due from related parties, net, (d) other
receivables, net, (e) prepaid expenses and other assets, net, (f) accounts payable, (g) due to
related parties, net, (h) accrued liabilities, (i) income taxes payable (receivable), (j) deferred
revenues and (k) changes in cash in escrow and restricted cash, in the case of each of (a) through
(k) as set forth in a consolidated statement of cash flows for such period, less (viii) the
aggregate change, if negative, in (1) mortgages and contracts receivable, (2) unsold vacation
interests, net, (3) due from related parties, net, (4) other receivables, net, (5) prepaid expenses
and other assets, net, (6) accounts payable, (7) due to related parties, net, (8) accrued
liabilities, (9) income taxes payable (receivable), (10) deferred revenues and (11) changes in cash
in escrow and restricted cash, in the case of each of (1) through (11) as set forth in a
consolidated statement of cash flows for such period, in the case of each of (i) through (viii) of
the Company and its Restricted Subsidiaries as determined on a consolidated basis in accordance
with GAAP.

          “Consolidated Interest Expense” means, for any period, the total interest expense of
the Company and the Restricted Subsidiaries computed on a consolidated basis in accordance with
GAAP (other than non-cash interest expense attributable to convertible indebtedness under
Accounting Practices Bulletin 14-1 or any successor provision), plus, to the extent not included in
such total interest expense, and to the extent incurred by the Company or any Restricted
Subsidiaries, without duplication:

     (i) interest expense attributable to Capital Lease Obligations, the interest portion
of rent expense associated with Attributable Debt in respect of the relevant lease giving
rise thereto, determined as if such lease were a capitalized lease in accordance with
GAAP, and the interest component of any deferred payment obligations;

     (ii) amortization of debt discount (including the amortization of original issue
discount resulting from the issuance of Indebtedness at less than par) and debt issuance
cost; provided, however, that any amortization of bond premium shall be credited to reduce
Consolidated Interest Expense unless, pursuant to GAAP, such amortization of bond premium
has otherwise reduced Consolidated Interest Expense;

     (iii) capitalized interest;

     (iv) non-cash interest expense; provided, however, that any
non-cash interest expense or income attributable to the movement in the mark-to-mark

8

 

valuation of Hedging Obligations or other derivative instruments pursuant to GAAP shall
be excluded from the calculation of Consolidated Interest Expense;

     (v) commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptance financing;

     (vi) net payments pursuant to Hedging Obligations;

     (vii) the product of (l) all dividends accrued in respect of all Disqualified Stock of
the Company and all Preferred Stock of any Restricted Subsidiary, in each case, held by
Persons other than the Company or a Restricted Subsidiary (other than dividends payable
solely in Capital Stock (other than Disqualified Stock) of the Company), times (2) a
fraction of the numerator of which is one and the denominator of which is one minus the
effective combined tax rate of the issuer of such Preferred Stock (expressed as a decimal)
for such period (as estimated by the chief financial officer of the Company in good faith);

     (viii) interest incurred in connection with Investments in discontinued
operations; and

     (ix) interest accruing on any Indebtedness of any other Person to the extent such
Indebtedness is Guaranteed by (or secured by a Lien on the assets of) the Company or any
Restricted Subsidiary;

provided, however, there shall be excluded from Consolidated Interest
Expense the interest expense (including the expenses described in (i) through (ix)) with
respect to Nonrecourse Indebtedness incurred in connection with Permitted Securitizations.

          “Consolidated Net Income” means, for any period, net income (or loss) of the Company
and the Restricted Subsidiaries, computed on a consolidated basis for such Persons, in accordance
with GAAP; provided, however, these shall be excluded therefrom the following:

     (i) net income (or loss) of any Person accrued prior to the date it became a
Restricted Subsidiary or was merged with or into or consolidated with the Company or a
Restricted Subsidiary or the date such Person’s assets were acquired by the Company or a
Restricted Subsidiary;

     (ii) any gain (net of tax effects attributable thereto) arising from any
reappraisal or write-up of assets;

     (iii) any portion of the net income of any Restricted Subsidiary that for any reason
is unavailable for payment of dividends or similar distributions to the Company or any
other Restricted Subsidiary;

     (iv) the cumulative effect of any changes in accounting principles; and

9

 

     (v) net income of any Person (other than a Restricted Subsidiary) in which the
Company or any Restricted Subsidiary shall have an ownership interest unless such net
income shall actually have been received by the Company or such Restricted Subsidiary in
the form of cash dividends or similar distributions;

provided, however, that any amounts distributed to a Company Holder
pursuant to Section 4.04(b)(ix) are treated as an income tax expense by the Company and will
be deducted in computing net income (loss) of the Company.

          “Credit Facility” means any credit agreement providing for revolving credit,
including any related notes, guarantees, collateral documents, instruments and agreement executed
in connection therewith, and, in each case, as amended, restated, replaced (whether upon or after
termination or otherwise), Refinanced, supplemented, modified or otherwise changed (in whole or in
part, and without limitation as to amount, terms, conditions, covenants and other provisions) from
time to time.

          “DROT 2009 Notes” means the 9.31% Timeshare Loan Backed Notes, Series 2009-1,
Class A and the 12.00% Timeshare Loan Backed Notes, Series 2009-1, Class B of Diamond Resorts
Owner Trust 2009-1 outstanding on the Issue Date.

          “Default” means any event that is or, with the passage of time or the giving of
notice or both, would be an Event of Default.

          “Designated Non-cash Consideration” means the Fair Market Value of non-cash
consideration received by the Company or one of its Restricted Subsidiaries in connection with an
Asset Sale that is so designated as Designated Non-cash Consideration pursuant to an Officers’
Certificate setting forth the basis of such valuation, less the amount of cash and Cash
Equivalents received in connection with a subsequent sale of such Designated Non-cash
Consideration.

          “Disqualified Stock” means, with respect to any Person, any Capital Stock which by its
terms (or by the terms of any security into which it is convertible or for which it is exchangeable
at the option of the holder) or upon the happening of any event:

     (i) matures or is mandatorily redeemable (other than redeemable only for Capital
Stock of such Person which is not itself Disqualified Stock) pursuant to a sinking fund
obligation or otherwise;

     (ii) is convertible or exchangeable at the option of the holder for
Indebtedness or Disqualified Stock; or

     (iii) is mandatorily redeemable or must be purchased upon the occurrence of certain
events or otherwise, in whole or in part;

in each case on or prior to 91 days after the Stated Maturity of the Notes;
provided, however, that any Capital Stock that would not constitute Disqualified
Stock but for provisions thereof giving holders thereof the right to require such Person to
purchase or

10

 

redeem such Capital Stock upon the occurrence of an “asset sale” or “change of control”
occurring prior to 91 days after the Stated Maturity of the Notes shall not constitute
Disqualified Stock if:

     (i) the “asset sale” or “change of control” provisions applicable to such Capital
Stock are not more favorable to the holders of such Capital Stock than the terms
applicable to the Notes and set forth in Sections 4.06 and 4.09, respectively; and

     (ii) any such requirement only becomes operative after compliance with such terms
applicable to the Notes, including the purchase of any Notes tendered pursuant thereto.

          The amount of any Disqualified Stock that does not have a fixed redemption, repayment or
repurchase price shall be calculated in accordance with the terms of such Disqualified Stock as if
such Disqualified Stock were redeemed, repaid or repurchased on any date on which the amount of
such Disqualified Stock is to be determined pursuant to this Indenture; provided,
however, that if such Disqualified Stock could not be required to be redeemed, repaid or
repurchased at the time of such determination, the redemption, repayment or repurchase price shall
be the book value of such Disqualified Stock as reflected in the most recent financial statements
of such Person.

          “Equity Interests” means Capital Stock and all warrants, options or other rights to
acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable
for, Capital Stock).

          “Excess Cash Flow” means, for any fiscal period of the Company, an amount equal
to:

     (i) Adjusted EBITDA for such period; less

     (ii) Capital Expenditures for such period; provided, that, for purposes of this
calculation, Capital Expenditures shall not exceed $10.0 million in any twelve-month period (or, if
applicable, $2.5 million in any three-month period); less

     (iii) Consolidated Interest Expense paid in cash for such period; less

     (iv) the aggregate amount of cash distributed as Restricted Payments during such
period as permitted by Section 4.04(b)(ix); less

     (v) any mandatory payments by the Company and its Restricted
Subsidiaries on any Permitted Securitization (other than the Conduit Facility, the Quorum
Facility or any similar facility) made during such period, except to the extent that any such
payments were financed by the proceeds received from the incurrence of any other Indebtedness (net
of any fees, expenses and Hedging Obligation breakage costs or benefits associated with such
incurrence); plus

11

 

     (vi) the amount of the increase, if any, in the aggregate amount outstanding on the
Conduit Facility, the Quorum Facility or any similar facility during such period (provided,
that for purposes of determining such amount, any changes during such period attributable to any
voluntary prepayments on such facilities or any payments on such facilities financed by the
proceeds received from the incurrence of any other Indebtedness (net of any fees, expenses and
Hedging Obligation breakage costs or benefits associated with such incurrence) shall be
disregarded); less

     (vii) the amount of the decrease, if any, in the aggregate amount outstanding on the
Conduit Facility, the Quorum Facility or any similar facility during such period (provided,
that for purposes of determining such amount, any changes during such period attributable to any
voluntary prepayments on such facilities or any payments on such facilities financed by the
proceeds received from the incurrence of any other Indebtedness (net of any fees, expenses and
Hedging Obligation breakage costs or benefits associated with such incurrence) shall be
disregarded); plus

     (viii) Consolidated Change in Working Capital for such period, if positive; plus

     (ix) Consolidated Change in Working Capital for such period, if negative.

          “Exchange Act” means the U.S. Notes Exchange Act of 1934, as amended.

          “Fair Market Value” means, with respect to any asset or property, the price which
could be negotiated in an arm’s length, free market transaction, for cash, between a willing seller
and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the
transaction. Fair Market Value of the property or assets in question shall be determined in good
faith by an appropriate financial officer of the Company unless such Fair Market Value (excluding
the Fair Market Value of any portion of such asset or property consisting of cash or Cash
Equivalents) is determined to be in excess of $15,000,000, in which case it shall be determined in
good faith by the Board of Directors, whose determination shall be conclusive and, in the case of
any determination made by the Board of Directors, evidenced by a resolution of the Board of
Directors; provided, however, that if the Fair Market Value of the property or
assets in question (excluding any portion of such property or assets consisting of cash or Cash
Equivalents) is so determined to be in excess of $30,000,000 in the case of any determination of
Fair Market Value required by Section 4.04(a)(3)(B) or $20,000,000 in the case of any determination
of Fair Market Value required by any other provisions set forth in Section 4.04, such determination
must be confirmed by an Independent Qualified Party.

          “Fixed Charge Coverage Ratio” as of any date of determination means the ratio of (x)
the aggregate amount of Adjusted EBITDA for the period of the most recent four consecutive fiscal
quarters for which financial statements of the Company are available to (y) Consolidated Interest
Expense for such four fiscal quarters; provided, however, that:

12

 

     (i) if the Company or any Restricted Subsidiary has incurred any
Indebtedness since the beginning of such period that remains outstanding or if the
transaction giving rise to the need to calculate the Fixed Charge Coverage Ratio is an
incurrence of Indebtedness, or both, Adjusted EBITDA and Consolidated Interest Expense for
such period shall be calculated after giving effect on a pro forma basis to such
Indebtedness as if such Indebtedness had been incurred on the first day of such period;

     (ii) if the Company or any Restricted Subsidiary has repaid, repurchased, defeased
or otherwise discharged any Indebtedness since the beginning of such period or if any
Indebtedness is to be repaid, repurchased, defeased or otherwise discharged (in each case
other than Indebtedness incurred under any revolving credit facility unless such
Indebtedness has been permanently repaid and has not been replaced) on the date of the
transaction giving rise to the need to calculate the Fixed Charge Coverage Ratio,
Adjusted EBITDA and Consolidated Interest Expense for such period shall be calculated on
a pro forma basis as if such discharge had occurred on the first day of such period and
as if the Company or such Restricted Subsidiary had not earned the interest income
actually earned during such period in respect of cash or Cash Equivalents used to repay,
repurchase, defease or otherwise discharge such Indebtedness;

     (iii) if since the beginning of such period the Company or any Restricted Subsidiary
shall have made any Asset Sale, Adjusted EBITDA for such period shall be reduced by an
amount equal to Adjusted EBITDA (if positive) directly attributable to the assets which
are the subject of such Asset Sale for such period, or increased by an amount equal to
Adjusted EBITDA (if negative), directly attributable thereto for such period and
Consolidated Interest Expense for such period shall be reduced by an amount equal to the
Consolidated Interest Expense directly attributable to any Indebtedness of the Company or
any Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged with
respect to the Company and its continuing Restricted Subsidiaries in connection with such
Asset Sale for such period (or, if the Capital Stock of any Restricted Subsidiary is sold,
the Consolidated Interest Expense for such period directly attributable to the
Indebtedness of such Restricted Subsidiary to the extent the Company and its continuing
Restricted Subsidiaries are no longer liable for such Indebtedness after such sale);

     (iv) if since the beginning of such period the Company or any Restricted Subsidiary
(by merger or otherwise) shall have made an Investment in any Restricted Subsidiary (or
any Person which becomes a Restricted Subsidiary) or an acquisition of assets, including
any acquisition of assets occurring in connection with a transaction requiring a
calculation to be made hereunder, which constitutes all or substantially all of an
operating unit of a business, Adjusted EBITDA and Consolidated Interest Expense for such
period shall be calculated after giving pro forma effect thereto (including the incurrence
of any

13

 

Indebtedness) as if such Investment or acquisition had occurred on the first day of such
period; and

     (v) if since the beginning of such period any Person (that subsequently became a
Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary
since the beginning of such period) shall have made any Asset Sale, any Investment or
acquisition of assets that would have required an adjustment pursuant to clause (iii) or
(iv) above if made by the Company or a Restricted Subsidiary during such period, Adjusted
EBITDA and Consolidated Interest Expense for such period shall be calculated after giving
pro forma effect thereto as if such Asset Sale, Investment or acquisition had occurred on
the first day of such period.

          For purposes of this definition, whenever pro forma effect is to be given to an acquisition of
assets, the amount of income or earnings relating thereto and the amount of Consolidated Interest
Expense associated with any Indebtedness incurred in connection therewith, the pro forma
calculations shall be determined in good faith by a responsible financial or accounting Officer of
the Company. If any Indebtedness bears a floating rate of interest and is being given pro forma
effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the date
of determination had been the applicable rate for the entire period (taking into account any
interest rate hedging agreement applicable to such Indebtedness if such agreement has a remaining
term in excess of 12 months). If any Indebtedness is incurred under a revolving credit facility and
is being given pro forma effect, the interest on such Indebtedness shall be calculated based on the
average daily balance of such Indebtedness for the four fiscal quarters subject to the pro forma
calculation to the extent that such Indebtedness was incurred solely for working capital purposes.

          “Foreign Subsidiary” means any Restricted Subsidiary of the Company that is not
organized under the laws of the United States of America or any State thereof or the District of
Columbia.

          “GAAP” means accounting principles generally accepted in the United States of America
set forth in the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as have been approved
by a significant segment of the accounting profession, which are in effect on the Issue Date and
consistently applied.

          “Government Securities” means securities that are direct obligations (or certificates
representing an ownership interest in such obligations) of, or obligations guaranteed by, the
United States of America (including any agency or instrumentality thereof) for the payment of which
the full faith and credit of the United States of America is pledged and which are not callable at
the issuer’s option.

          “Guarantee” means a guarantee (other than by endorsement of negotiable instruments
for collection in the ordinary course of business), direct or indirect, in any

14

 

manner (including letters of credit and reimbursement agreements in respect thereof), of all or
any part of any Indebtedness.

          “Guarantor” means

     (i) the Company;

     (ii) Intermediate Holdco; and

     (iii) each other Subsidiary of the Company that Guarantees the Notes in accordance
with the provisions of this Indenture,

in each case until such Person is released from its Notes Guarantee in accordance with
this Indenture.

          “Guggenheim” means Guggenheim Partners, LLC, Guggenheim Securities, LLC
and their respective affiliates.

          “Hedging Obligations” means, with respect to any Person, the obligations of such
Person under (i) interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements and (ii) other agreements or arrangements designed to protect such Person
against fluctuations in interest or currency exchange rates.

          “Holder” means any registered holder on the books of the Registrar, from time to
time, of the Notes.

          “Indebtedness” means, with respect to any Person on any date of
determination (without duplication):

     (i) the principal in respect of (1) indebtedness of such Person for money borrowed
and (2) indebtedness evidenced by notes, debentures, bonds or other similar instruments
for the payment of which such Person is responsible or liable, including, in each case,
any premium on such indebtedness to the extent such premium has become due and payable;

     (ii) all Capital Lease Obligations of such Person and all Attributable Debt in
respect of Sale/Leaseback Transactions entered into by such Person;

     (iii) all obligations of such Person issued or assumed as the deferred purchase
price of property, all conditional sale obligations of such Person and all obligations of
such Person under any title retention agreement (but excluding any accounts payable or
other liability to trade creditors arising in the ordinary course of business);

     (iv) all obligations of such Person for the reimbursement of any obligor on any
letter of credit, bankers’ acceptance or similar credit transaction (other than
obligations with respect to letters of credit securing obligations (other than

15

 

obligations set forth in clauses (i) through (iii) above) entered into in the
ordinary course of business of such Person to the extent such letters of credit are not
drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than
the tenth Business Day following payment on the letter of credit);

     (v) the amount of all obligations of such Person with respect to the redemption,
repayment or other repurchase of any Disqualified Stock of such Person or, with respect to
any Preferred Stock of any Subsidiary of such Person, the principal amount of such
Preferred Stock to be determined in accordance with this Indenture (but excluding, in each
case, any accrued dividends);

     (vi) all Guarantees by such Person of obligations of the type referred to in clauses
(i) through (v) or dividends of other Persons;

     (vii) all obligations of the type referred to in clauses (i) through (vi) of other
Persons secured by any Lien on any property or asset of such Person (whether or not such
obligation is assumed by such Person), the amount of such obligation being deemed to be
the lesser of the Fair Market Value of such property or assets and the amount of the
obligation so secured; and

     (viii) to the extent not otherwise included in this definition, Hedging
Obligations of such Person.

Indebtedness of a Person includes Acquired Indebtedness of such Person.

          Notwithstanding the foregoing, the term “Indebtedness” shall exclude (i) in connection with
the purchase by the Company or any Restricted Subsidiary of any business, post-closing payment
adjustments to which the seller may become entitled to the extent such payment is determined by a
final closing balance sheet or such payment depends on the performance of such business after the
closing; provided, however, that, at the time of closing, the amount of any such
payment is not determinable and, to the extent such payment thereafter becomes fixed and
determined, the amount is paid within 30 days thereafter and (ii) obligations of the Company and
the Restricted Subsidiaries under Standard Securitization Undertakings.

          The amount of Indebtedness of any Person at any date shall be the outstanding balance at
such date of all obligations as set forth above; provided, however, that in the
case of Indebtedness sold at a discount, the amount of such Indebtedness at any time shall be the
accreted value thereof at such time.

          “Indenture” means this Indenture as amended or supplemented from time to time.

          “Independent Qualified Party” means an investment banking firm, accounting firm or
appraisal firm of national standing; provided, however, that such firm is not an
Affiliate of the Company.

16

 

          “Initial Purchasers” means Credit Suisse Securities (USA) LLC, Banc of America
Securities LLC and Guggenheim Securities, LLC.

          “Intermediate Holdco” means Diamond Resorts Holdings, LLC and its successors and
assigns.

          “Intercreditor Agreement” means any Junior Lien Intercreditor Agreement or Pari Passu
Intercreditor Agreement.

          “Investment” in any Person means any direct or indirect advance, loan (other than
advances to customers in the ordinary course of business that are recorded as accounts receivable
on the balance sheet of the lender) or other extensions of credit (including by way of Guarantee or
similar arrangement) or capital contribution to (by means of any transfer of cash or other property
to others or any payment for property or services for the account or use of others), or any
purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by such
Person. If the Company or any Restricted Subsidiary issues, sells or otherwise disposes of any
Capital Stock of a Person that is a Restricted Subsidiary such that, after giving effect thereto,
such Person is no longer a Restricted Subsidiary, any Investment by the Company or any Restricted
Subsidiary in such Person remaining after giving effect thereto shall be deemed to be a new
Investment at such time. The acquisition by the Company or any Restricted Subsidiary of a Person
that holds an Investment in a third Person shall be deemed to be an Investment by the Company or
such Restricted Subsidiary in such third Person at such time. Except as otherwise provided for
herein, the amount of an Investment shall be its Fair Market Value at the time the Investment is
made and without giving effect to subsequent changes in value.

          For purposes of the definition of “Unrestricted Subsidiary” and Section 4.04:

     (i) “Investment” shall include the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the Fair Market Value of the net assets of any Subsidiary
of the Company at the time that such Subsidiary is designated an Unrestricted Subsidiary;
provided, however, that upon a redesignation of such Subsidiary as a
Restricted Subsidiary, the Company shall be deemed to continue to have a permanent
“Investment” in an Unrestricted Subsidiary equal to an amount (if positive) equal to (1)
the Company’s “Investment” in such Subsidiary at the time of such redesignation less (2)
the portion (proportionate to the Company’s equity interest in such Subsidiary) of the
Fair Market Value of the net assets of such Subsidiary at the time of such redesignation;
and

     (ii) any property transferred to or from an Unrestricted Subsidiary shall be valued
at its Fair Market Value at the time of such transfer.

          “Issue Date” means August 13, 2010.

17

 

          “Junior Lien Intercreditor Agreement” means an intercreditor agreement substantially
in the form attached hereto as Exhibit B.

          “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions
are not required to be open in the State of New York.

          “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law (including any conditional sale or other title retention
agreement or any lease in the nature thereof); provided, however, that in no event
shall an operating lease be deemed to constitute a Lien. The term “Lien” does not include negative
pledge clauses in agreements relating to the borrowing of money or the obligation of the Company or
any Subsidiary (a) to remit monies held by it in connection with dealer holdbacks, claims or
refunds under insurance policies, or claims or refunds under service contracts or (b) to make
deposits in trust or otherwise as required under reinsurance agreements or pursuant to state
regulatory requirements, unless the Company or such Subsidiary has encumbered its interest in such
monies or deposits or in other property of the Company or such Subsidiary to secure such
obligations.

          “Moody’s” means Moody’s Investors Service, Inc., or any successor thereto.

          “Net Cash Proceeds” means (i) with respect to any issuance or sale of Capital Stock or
Indebtedness, the cash proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and
other fees actually incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof and (ii) with respect to an Asset Sale, the payments
received in the form of cash or the value of Cash Equivalents therefrom (including any such
payments received by way of deferred payment of principal pursuant to a note or installment
receivable or otherwise and proceeds from the sale or other disposition of any securities received
as consideration, but only as and when received, but excluding any other consideration received in
the form of assumption by the acquiring Person of Indebtedness or other obligations relating to
such properties or assets or received in any other non-cash form), in each case net of:

     (l) all legal, accounting and investment banking fees, title and recording tax
expenses, commissions and other fees and expenses incurred, and all Federal, state,
provincial, foreign and local taxes required to be accrued as a liability under GAAP, as a
consequence of such Asset Sale;

     (2) all payments made on any Indebtedness which is secured by any assets subject to
such Asset Sale, in accordance with the terms of any Lien upon or other security agreement
of any kind with respect to such assets, or which must by its terms, or in order to obtain
a necessary consent to such Asset Sale, or by applicable law, be repaid out of the
proceeds from such Asset Sale;

18

 

     (3) all distributions and other payments required to be made to minority interest
holders in Restricted Subsidiaries as a result of such Asset Sale;

     (4) the deduction of appropriate amounts provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the property or other assets
disposed in such Asset Sale and retained by the Company or any Restricted Subsidiary after
such Asset Sale; and

     (5) any portion of the purchase price from an Asset Sale placed in escrow, whether as
a reserve for adjustment of the purchase price, for satisfaction of indemnities in respect
of such Asset Sale or otherwise in connection with that Asset Disposition;
provided, however, that upon the termination of that escrow, Net Cash
Proceeds shall be increased by any portion of funds in the escrow that are released to the
Company or any Restricted Subsidiary.

          “Nonrecourse Indebtedness” means, with respect to any Special Purpose Subsidiary,
Indebtedness of such Special Purpose Subsidiary:

     (1) as to which neither the Company nor any Restricted Subsidiary (other than such
Special Purpose Subsidiary) (a) provides credit support of any kind (including any
undertaking, agreement or instrument that would constitute Indebtedness other than
Standard Securitization Undertakings), (b) is directly or indirectly liable as a guarantor
or otherwise or (c) constitutes the lender;

     (2) no default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against such Special Purpose Subsidiary)
would permit upon notice, lapse of time or both any holder of any other Indebtedness of the
Company or any Restricted Subsidiary (other than such Special Purpose Subsidiary) to
declare a default on such other Indebtedness or cause the payment of the Indebtedness to be
accelerated or payable prior to its Stated Maturity; and

     (3) as to which (a) the explicit terms provide that there is no recourse against any
assets of the Company or any Restricted Subsidiary or (b) the lenders have been notified
in writing that they will not have any recourse to the stock or assets of the Company or
any Restricted Subsidiary;

provided, however. that the Company or a Restricted Subsidiary may grant a
Lien on the Capital Stock of such Special Purpose Subsidiary to the creditors thereof which is not
recourse to any other assets of the Company or any Restricted Subsidiary.

          “Notes” means all the 12.00% Senior Secured Notes due 2018 issued under this
Indenture, treated as a single class.

          “Notes Guarantee” means the Guarantee on the terms set forth in this Indenture
by a Guarantor of the Issuer’s obligations with respect to the Notes.

19

 

          “Notes Obligations” means the Obligations of the Company and the Guarantors
with respect to the Notes.

          “Notes Secured Creditors” means the Trustee and the Holders, together.

          “Obligations” means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under the
documentation governing any Indebtedness.

          “Offering Circular” means the confidential Offering Circular dated August 10, 2010,
pursuant to which the initial Notes were offered and sold.

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the
President, the Chief Financial Officer, the Chief Accounting Officer, the Treasurer or any
Executive Vice President (or any such other officer that performs similar duties) of the Company.

          “Officers’ Certificate” of the Company means a certificate signed on behalf of
the Company by two Officers.

          “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to
the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

          “Pari Passu Intercreditor Agreement” means an intercreditor agreement
substantially in the form attached hereto as Exhibit A.

          “Permitted Collateral Liens” means

          (a) (i) any Lien on the Collateral to secure:

     (l) any Indebtedness incurred as Permitted Indebtedness pursuant to Section
4.03(b)(i);

     (2) the Notes (or any Guarantees thereof) incurred as Permitted
Indebtedness pursuant to Section 4.03(b)(ii);

     (3) any other Indebtedness incurred pursuant to Section 4.03;
provided, however, that (x) no Default shall have occurred
and be continuing at the time of the incurrence of such Indebtedness or after
giving effect thereto and (y) the Secured Debt Ratio of the Company,
calculated on a pro forma basis after giving effect to the incurrence of such
Indebtedness, would be no greater than 2.5 to 1.0;

     (4) any Refinancing Indebtedness of Indebtedness set forth in the foregoing
clauses (2) or (3) or this clause (4); or

20

 

     (5) Banking Product Obligations to the extent that the provider of such
Banking Product Obligations has agreed to be bound by the terms of an
Intercreditor Agreement or such provider’s interest in the Collateral is subject
to the terms of an Intercreditor Agreement,

in each case which are subject to the terms of an Intercreditor Agreement; or

     (ii) any Lien on the Collateral that is a statutory Lien arising by operation of
law; provided, however, that such Lien either ranks:

     (l) equal to all other Liens on such Collateral securing unsubordinated
Indebtedness of the Company or the relevant Restricted Subsidiary, if the Lien
secures unsubordinated Indebtedness; or

     (2) junior to the Liens securing the Notes, and

     (b) any Permitted Lien set forth in clauses (i), (iii), (iv), (v), (vi), (vii),
(viii), (ix), (x), (xii), (xiv), (xv), (xvi), (xvii), (xviii), (xix), (xx), (xxi) and
(xxii) of the definition of “Permitted Lien”; provided, however,
that (A) such Permitted Lien (other than any Lien set forth in clauses (iii), (ix), (xiv),
(xv), (xvi) and (xvii) of such definition) is not a Lien on any of the Points and (B) such
Permitted Lien (other than any Lien set forth in clauses (iii), (vii) and (ix) of such
definition) is not a Lien on any cash or Cash Equivalents constituting Collateral and held
by the Collateral Agent.

          “Permitted Future Secured Creditors” means the holders or lenders (and their
representatives and trustees), as the case may be, of Permitted Future Secured Indebtedness.

          “Permitted Future Secured Indebtedness” means Secured Indebtedness (other than any
Secured Indebtedness with respect to the Notes issued on the Issue Date or any Notes issued in
exchange therefor pursuant to this Indenture or the Registration Rights Agreement) incurred after
the Issue Date in compliance with this Indenture, to the extent the Company, the Issuer and the
Subsidiary Guarantors are permitted to create a Permitted Collateral Lien for the benefit of the
holders or lenders thereof or their representatives and trustees, as the case may be, without
violating Section 4.12.

          “Permitted Holder” means (i) Stephen J. Cloobeck and David F. Palmer, their estates,
descendants and legal representatives and any Person that they control; (ii) any Person acting in
the capacity of an underwriter (solely to the extent that and for so long as such Person is acting
in such capacity) in connection with a public or private offering of Capital Stock of the Company;
and (iii) any “person” (as such term is used in Section 13(d)(3) of the Exchange Act) whose status
as a “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) constitutes or
results in a Change of Control in respect of which a Change of Control Offer has been made and
completed in accordance with the requirements of this Indenture, together with its Affiliates.

21

 

          “Permitted Investments” means:

     (i) any Investment in the Company or in a Wholly Owned Restricted Subsidiary of
the Company other than a Special Purpose Subsidiary;

     (ii) any Investment in cash or Cash Equivalents;

     (iii) any Investment by the Company or any Subsidiary of the Company in a Person, if
as a result of such Investment (1) such Person becomes a Wholly Owned Restricted Subsidiary
of the Company other than a Special Purpose Subsidiary and a Guarantor that is engaged in a
Related Business or (2) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into, the Company
or a Wholly Owned Restricted Subsidiary of the Company other than a Special Purpose
Subsidiary that is a Guarantor and that is engaged in a Related Business;

     (iv) any Investment made as a result of the receipt of non-cash consideration from
an Asset Sale that was made pursuant to and in compliance with Section 4.06;

     (v) any acquisition of assets solely in exchange for the issuance of Equity Interests
(other than Disqualified Stock) of the Company;

     (vi) any Investment in Timeshare Loans generated in the ordinary course of business
by the Company and the Restricted Subsidiaries;

     (vii) any Investment existing on the Issue Date;

     (viii) loans and advances to officers, directors and employees (other than to a
Permitted Holder) for payroll, business-related travel, moving expenses and similar
purposes to, and Guarantees issued to support the obligations of officers, directors and
employees, in each case in the ordinary course of business;

     (ix) Hedging Obligations otherwise permitted under this Indenture;

     (x) receivables owing to the Company or any Restricted Subsidiary if created or
acquired in the ordinary course of business and endorsements for collection or
deposit in the ordinary course of business;

     (xi) any Investment acquired by the Company or any Restricted Subsidiary (A) in
exchange for any other Investment held by the Company or any Restricted Subsidiary in
connection with or as a result of a bankruptcy, workout, reorganization or recapitalization
of the issuer of such other Investment, (B) as a result of a foreclosure by the Company or
any Restricted Subsidiary with respect to any secured Investment or other transfer of title
with respect to any secured Investment in default or (C) in satisfaction of claims or
judgments; and

22

 

     (xii) other Investments by the Company or any Restricted Subsidiary in any Person
(other than an Affiliate of the Company that is not also a Subsidiary of the Company) that
do not exceed $10,000,000 in the aggregate at anyone time outstanding (measured as of the
date made and without giving effect to subsequent changes in value).

          “Permitted Liens” means:

     (i) Liens existing on the Issue Date;

     (ii) Liens on Timeshare Loans, and related rights and assets and the proceeds
thereof incurred in connection with Permitted Securitizations;

     (iii) Liens for taxes, assessments, charges or other governmental levies not yet due
or as to which the period of grace, if any, related thereto has not expired or which are
being contested in good faith by appropriate proceedings; provided,
however, that, in the case of contested taxes, adequate reserves with respect
thereto are maintained on the books of the applicable Person in conformity with GAAP;

     (iv) statutory Liens such as carriers’, warehousemen’s, mechanics’, materialmen’s,
landlords’, repairmen’s or other like Liens arising in the ordinary course of business that
are not overdue for a period of more than 30 days or which are being contested in good
faith by appropriate proceedings;

     (v) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security or welfare legislation and deposits securing
liability to insurance carriers under insurance or self-insurance arrangements;

     (vi) easements, rights of way, restrictions, covenants and other similar encumbrances
affecting real property and minor imperfections of title that would not in any case
reasonably be expected to have a material adverse effect on the present or future use of
the property to which it relates or a material adverse effect on the sale or lease of such
property;

     (vii) rights of setoff or bankers’ liens upon deposits of cash in favor of banks or
other depository institutions, including Liens of a collection bank arising under Section
4-210 of the Uniform Commercial Code on items in the course of collection in favor of
banking institutions arising as a matter of law encumbering deposits (including the right
of set-off) within general parameters customary in the banking industry;

     (viii) Liens incurred on deposits to secure (1) the performance of tenders, bids,
trade contracts, licenses and leases, fee and expense arrangements with trustees and
fiscal agents, statutory obligations, and other obligations of a like nature incurred in
the ordinary course of business and not in connection with the

23

 

borrowing of money, or (2) indemnification obligations entered into in the
ordinary course of business relating to any disposition permitted hereunder;

     (ix) Liens securing judgments, awards or orders for the payment of money that do not
constitute an Event of Default pursuant to clause (viii) of the definition thereof;

     (x) leases, subleases and other occupancy agreements with respect to real property
owned or leased by the Company or any Restricted Subsidiary not interfering in any
material respect with the business of the Company or any Restricted Subsidiary;

     (xi) Permitted Collateral Liens, including Liens created under the Security
Documents;

     (xii) non-exclusive licenses of patents, trademarks, copyrights, and other
intellectual property rights in the ordinary course of business;

     (xiii) Liens in favor of the Company or any Restricted Subsidiary (other than a
Special Purpose Subsidiary);

     (xiv) Liens securing any Refinancing Indebtedness which is incurred to Refinance any
Indebtedness that has been secured by a Lien permitted under this Indenture and that has
been incurred in accordance with the provisions of this Indenture; provided,
however, that such Liens do not extend to or cover any property or assets of the
Company or any Restricted Subsidiary that would not have secured the Indebtedness so
Refinanced had such Indebtedness not been Refinanced;

     (xv) Liens securing Acquired Indebtedness incurred in accordance with Section
4.03; provided, however, that:

     (1) such Liens secured such Acquired Indebtedness at the time of and prior
to the incurrence of such Acquired Indebtedness by the Company or a Restricted
Subsidiary and were not granted in connection with, or in anticipation of, the
incurrence of such Acquired Indebtedness by the Company or a Restricted
Subsidiary; and

     (2) such Liens do not extend to or cover any property or assets of the
Company or of any Restricted Subsidiary other than the property or assets that
secured the Acquired Indebtedness prior to the time such Indebtedness became
Acquired Indebtedness of the Company or a Restricted Subsidiary and are no more
favorable to the lienholders than those securing the Acquired Indebtedness prior
to the incurrence of such Acquired Indebtedness by the Company or a Restricted
Subsidiary as determined by the management of the Company in their reasonable and
good faith judgment;

24

 

     (xvi) Liens securing performance, bid, appeal, surety and similar bonds and
completion guarantees provided by the Company or any Restricted Subsidiary in the ordinary
course of business;

     (xvii) Liens securing Capital Lease Obligations, mortgage financings or purchase money
obligations securing Indebtedness set forth in Section 4.03(b)(xiii); provided,
however, that any such Lien (A) covers only the assets acquired, constructed or
improved with such Indebtedness and (B) is created within 180 days of such acquisition,
construction or improvement;

     (xviii) Liens on property existing at the time of acquisition thereof by the Company
or any Restricted Subsidiary; provided, however, that such Liens were in
existence prior to, and were not incurred in connection with or in contemplation of, such
acquisition and do not extend to any property other than the property so acquired by the
Company or the Restricted Subsidiary;

     (xix) deposits made in the ordinary course of business to secure liability to
insurance carriers;

     (xx) Liens on cash or cash equivalents securing permitted Hedging Obligations;

     (xxi) Liens on rights of beneficiaries under trust arrangements to secure trust fees
and other related fees and expenses; or

     (xxii) Liens other than any of the foregoing incurred by the Company or any Restricted
Subsidiary with respect to Indebtedness or other obligations that do not, in the aggregate,
exceed $10,000,000.

          “Permitted Securitization” means each transfer or encumbrance (each a
“disposition”) of (A) Timeshare Loans, in each case by the Company or any Restricted
Subsidiary to one or more Special Purpose Subsidiaries or by one Special Purpose Subsidiary to
another Special Purpose Subsidiary, conducted in accordance with the following requirements:

     (i) each disposition in clause (A) shall identify with reasonable certainty the
specific Timeshare Loans;

     (ii) the only Indebtedness of the Company or any Restricted Subsidiary resulting from
such disposition shall be Nonrecourse Indebtedness of one or more Special Purpose
Subsidiaries; and

     (iii) both immediately before and after such disposition, no Default has
occurred and is continuing.

25

 

          “Person” means an individual, partnership, corporation, limited
liability company, unincorporated organization, trust, joint venture, or government
or any agency or political subdivision thereof or any other entity.

          “Points” means vacation points which confer on an owner thereof the right to use a
residential unit.

          “Polo Towers Lines of Credit and Securitization Notes Payable” means the (i) variable
rate lines of credit which mature on July 31, 2010 and December 31, 2012 and (ii) the securitized
loans that were collateralized by retail contracts and related vacation ownership interests which
carry fixed interest rates of 7.26% and 7.65%, each of which were contributed to the Company on
April 26, 2007, and which are outstanding on the Issue Date.

          “Preferred Stock”, as applied to the Capital Stock of any Person, means Capital Stock
of any class or classes (however designated) which is preferred as to the payment of dividends or
distributions, or as to the distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of Capital Stock of any other class of such Person.

          “Qualified Equity Interests” of a Person means Equity Interests of such Person other
than:

     (i) any Disqualified Stock;

     (ii) any Equity Interests sold to a Subsidiary of such Person or a Company Equity
Plan; or

     (iii) any Equity Interests financed, directly or indirectly, using funds borrowed from
such Person, a Subsidiary of such Person or any Company Equity Plan or contributed,
extended, advanced or guaranteed by such Person, a Subsidiary of such Person or any Company
Equity Plan.

          Unless otherwise specified, Qualified Equity Interests refer to Qualified Equity Interests of
the Company.

          “Quorum Facility” means that certain loan sale facility in a minimum aggregate amount
of $40,000,000 as evidenced by that Loan Sale and Security Agreement dated as of April 30, 2010 by
and among Quorum Federal Credit Union, as buyer, DRI Quorum 2010 LLC, as seller, Wells Fargo,
National Association, as back-up servicer and Diamond Resorts Financial Services, Inc., as
servicer, and the other transaction documents related thereto.

     “Redemption Date” means any date on which some or all of the Notes are to be redeemed
in accordance with Section 3.07.

26

 

          “Refinance” means, in respect of any Indebtedness, to refinance, restructure, extend,
renew, refund, pay, repay, prepay, redeem, defease, discharge or retire, or to issue a security or
Indebtedness in exchange or replacement for, such Indebtedness in whole or in part. “Refinanced”
and “Refinancing” shall have correlative meanings.

          “Refinancing Indebtedness” means Indebtedness that Refinances any Indebtedness of the
Company or any Restricted Subsidiary existing on the Issue Date or incurred in compliance with this
Indenture, including Indebtedness that Refinances Refinancing Indebtedness; provided,
however, that:

     (i) such Refinancing Indebtedness has a Stated Maturity no earlier than the Stated
Maturity of the Indebtedness being Refinanced;

     (ii) such Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is incurred that is equal to or greater than the Average Life of the
Indebtedness being Refinanced;

     (iii) such Refinancing Indebtedness has an aggregate principal amount (or if incurred
with original issue discount, an aggregate issue price) that is equal to or less than the
aggregate principal amount (or if incurred with original issue discount, the aggregate
accreted value) then outstanding (plus fees and expenses, including any premium and
defeasance costs) under the Indebtedness being Refinanced; and

     (iv) if the Indebtedness being Refinanced is subordinated in right of payment to the
Notes, such Refinancing Indebtedness is subordinated in right of payment to the Notes at
least to the same extent as the Indebtedness being Refinanced;

provided further, however, that Refinancing Indebtedness shall not include
(x) Indebtedness of a Subsidiary that Refinances Indebtedness of the Company or
(y) Indebtedness of the Company or a Restricted Subsidiary that Refinances Indebtedness
of an Unrestricted Subsidiary.

          “Registration Rights Agreement” means the Registration Rights Agreement, dated
as of the Issue Date, among the Company, the Guarantors and the Initial Purchasers.

          “Related Business” means any business in which the Company or any of the Restricted
Subsidiaries was engaged on the Issue Date and any business related, ancillary or complementary to
such business.

          “Replacement Assets” means, in connection with an Asset Sale, properties and assets
that replace the properties and assets that were the subject of such Asset Sale, or properties and
assets that will be used in the business of the Company and the Restricted Subsidiaries as existing
on the Issue Date or in a Related Business, including

27

 

Capital Stock of a Person primarily engaged in a Related Business that becomes a Restricted
Subsidiary.

          “Restricted Subsidiary” means, at any time, any direct or indirect Subsidiary of the
Company (including the Issuer) that is not then an Unrestricted Subsidiary; provided,
however, that, upon an Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary,
such Subsidiary shall, to the extent that it remains a Subsidiary of the Company at such time, be a
Restricted Subsidiary.

          “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.,
and any successor thereto.

          “Sale/Leaseback Transaction” means an arrangement relating to property owned by the
Company or a Restricted Subsidiary on the Issue Date or thereafter acquired by the Company or a
Restricted Subsidiary whereby the Company or a Restricted Subsidiary transfers such property to a
Person and the Company or a Restricted Subsidiary substantially concurrently leases it from such
Person.

          “SEC” means the Securities and Exchange Commission and any successor agency.

          “Secured Debt Ratio”, as of any date of determination, means the ratio of (1) Total
Indebtedness of the Company and its Restricted Subsidiaries that is secured by Liens on any of the
Collateral as of the end of the most recent fiscal quarter for which internal financial statements
are available immediately preceding the date on which such event for which such calculation is
being made shall occur to (2) Adjusted EBITDA for the most recently ended four full fiscal quarters
or which internal financial statements are available immediately preceding the date on which such
event for which such calculation is being made shall occur, in each case with such pro forma
adjustments to Total Indebtedness and Adjusted EBITDA as are appropriate and consistent with the
pro forma adjustment provisions set forth in the definition of Fixed Charge Coverage Ratio.

          “Secured Indebtedness” means any Indebtedness secured by a Lien.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Securitization” means a public or private transfer of Timeshare Loans in the ordinary
course of business and by which the Company or any of the Restricted Subsidiaries directly or
indirectly securitizes a pool of specified Timeshare Loans including any such transaction involving
the sale of specified Timeshare Loans to a Special Purpose Subsidiary.

     “Security Agreement” means the Security Agreement, dated as of the Issue Date,
among the Company, Intermediate Holdco, the Issuer, the Subsidiary Guarantors and the
Collateral Agent.

28

 

          “Security Documents” means the Security Agreement and all other agreements or
instruments evidencing or creating any security interest or Lien in favor of the Collateral Agent
or Trustee, for the benefit of the Holders, in any or all of the Collateral, in each case, as
amended from time to time in accordance with their respective terms.

          “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary”
as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act,
as such Regulation is in effect from time to time.

          “Special Purpose Subsidiary” means any wholly owned direct or indirect Subsidiary of
the Company established for the sole purpose of conducting one or more Permitted Securitizations
and otherwise established and operated in accordance with customary industry practices.

          “Standard Securitization Undertakings” means representations, warranties, covenants,
indemnities and guarantees of performance entered into by the Company or any Subsidiary of the
Company that the Company has determined in good faith to be customary in a Securitization,
including those relating to the servicing of the assets of a Special Purpose Subsidiary.

          “Stated Maturity” means, with respect to any installment of interest or principal on
any series of Indebtedness, the date on which such payment of interest or principal was scheduled
to be paid in the original documentation governing such Indebtedness, including any date upon which
a repurchase at the option of holders of such Indebtedness is required to be consummated, but
excluding any contingent obligations to repay, redeem or repurchase any such interest or principal
prior to the date originally scheduled for the payment thereof so long as such obligations remain
contingent.

          “Subordinated Obligation” means, with respect to a Person, any Indebtedness of such
Person (whether outstanding on the Issue Date or thereafter incurred) which is subordinate or
junior in right of payment to the Notes or a Guarantee of such Person, as the case may be, pursuant
to a written agreement to that effect.

          “Subsidiary” means, with respect to any Person, (i) any corporation, association or
other business entity of which more than 50.0% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof)
and (ii) any partnership (1) the sole general partner or the managing general partner of which is
such Person or a Subsidiary of such Person or (2) the only general partners of which are such
Person or one or more Subsidiaries of such Person (or any combination thereof). Unless otherwise
qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Indenture
shall refer to a Subsidiary or Subsidiaries of the Company.

29

 

          “Subsidiary Guarantor” means each Subsidiary of the Company that Guarantees the
Notes as provided for in this Indenture.

          “Sunterra SPE 2004 Notes” means the Class A notes, Class B notes, Class C notes and
Class D notes issued by Sunterra Owner Trust 2004-1 outstanding on the Issue Date.

          “Timeshare Loans” means loans made by the Company or one of its Subsidiaries to
finance the purchase of Vacation Interests from the Company or one of its Subsidiaries and
evidenced by a promissory note secured by Points or a fee simple interest in a residential unit.

          “Total Indebtedness” means, as at any date of determination, an amount equal to the
sum of the aggregate amount of all outstanding Indebtedness of the Company and its Restricted
Subsidiaries on a consolidated basis (and excluding, for the avoidance of doubt, all Nonrecourse
Indebtedness of Special Purpose Subsidiaries relating to Permitted Securitizations).

          “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§
77aaa-77bbbb) as in effect on the date of this Indenture.

          “Treasury Rate” means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two Business Days prior to such Redemption Date (or, if such
Statistical Release is no longer published, any publicly available source of similar market data))
most nearly equal to the period from such Redemption Date to August 15, 2014; provided,
however, that if the period from such Redemption Date to August 15, 2014 is less than one
year, the weekly average yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year shall be used.

          “Trust Monies” means all cash and Cash Equivalents received by the Trustee (i) upon
the release of Collateral, whether pursuant to an Asset Sale or otherwise; (ii) as compensation for
or proceeds of the sale of all or any part of the Collateral taken by eminent domain or purchased
by or sold pursuant to any order of a governmental authority or otherwise disposed of; (iii) as net
insurance proceeds; and (iv) pursuant to the Security Documents and any Intercreditor Agreement.

          “Trust Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred because of such
person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

30

 

          “Trustee” means Wells Fargo Bank, National Association, a national banking
association, as trustee under this Indenture, until a successor replaces it in accordance
with the applicable provisions of this Indenture and thereafter means the successor serving
as trustee under this Indenture.

          “Uniform Commercial Code” means the New York Uniform Commercial Code as in effect from
time to time.

          “Unrestricted Subsidiary” means (i) any Subsidiary of the Company which at the time of
determination is an Unrestricted Subsidiary (as designated by the Company, as provided below) and
(ii) any Subsidiary of an Unrestricted Subsidiary; provided, however, that the Issuer cannot be an
Unrestricted Subsidiary.

          FLRX, Inc. and its Subsidiaries shall each be Unrestricted Subsidiaries on the Issue Date
without further action. The Company may designate any Restricted Subsidiary (including any newly
acquired or newly formed Subsidiary) of the Company to be an Unrestricted Subsidiary unless such
Subsidiary owns any of the Capital Stock of the Company or any Restricted Subsidiary or owns or
holds any Indebtedness of or Lien on any property of the Company or any Restricted Subsidiary;
provided, however, that

     (i) any Guarantee or other credit support by the Company or any Restricted Subsidiary
of any Indebtedness of the Subsidiary being so designated shall be deemed an incurrence of
such Indebtedness and an “Investment” by the Company or such Restricted Subsidiary at the
time of such designation;

     (ii) either (1) the Restricted Subsidiary to be so designated has total assets of
$1,000 or less or (2) if such Subsidiary has assets greater than $1,000, such designation
would be permitted under Section 4.04; and

     (iii) after giving pro forma effect to the incurrence of Indebtedness and the
Investment referred to in clause (i) of this proviso, (1) such Indebtedness would be
permitted to be incurred as Ratio Indebtedness, (2) such Investment would be in compliance
with Section 4.04 and (3) no Default shall have occurred and be continuing.

          The Company may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided, however, that

     (i) no Default shall have occurred and be continuing at the time of or after giving
effect to such designation; and

     (ii) all Liens and Indebtedness of such Unrestricted Subsidiary outstanding
immediately after such designation would, if incurred at such time, have been permitted to
be incurred (and shall be deemed to have been incurred) for all purposes of this Indenture.

31

 

          Any such designation by the Company shall be evidenced to the Trustee by promptly filing with
the Trustee an Officers’ Certificate certifying that such designation complied with the foregoing
provisions.

          “U.S. Dollar Equivalent” means with respect to any monetary amount in a currency other
than U.S. dollars, at any time for determination thereof, the amount of U.S. dollars obtained by
converting such foreign currency involved in such computation into U.S. dollars at the spot rate
for the purchase of U.S. dollars with the applicable foreign currency as published in The Wall
Street Journal in the “Exchange Rates” column under the heading “Currency Trading” on the date
two (2) Business Days prior to such determination.

          “Vacation Interests” means 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 residential real estate property and the common areas and common furnishings appurtenant
to such unit for a specified period of time, on an annual or biennial basis, as more specifically
described in the applicable declaration or other relevant document or instrument. Vacation
Interests shall include Points.

          “Voting Stock” of any Person as of any date means the Capital Stock of such Person
that (i) if such Person is a corporation, is at the time entitled to vote in the election of such
corporation’s board of directors or any committee thereof duly authorized to act on behalf of such
board or (ii) if such Person is an entity other than a corporation, is at the time entitled to vote
in the election of the group or individual exercising the authority with respect to such Person
generally vested in a board of directors of a corporation.

          “Wholly Owned Restricted Subsidiary” of any Person means a Restricted Subsidiary of
such Person all of the outstanding Capital Stock or other ownership interests of which (other than
directors’ qualifying shares) shall at the time be owned by such Person or by one or more Wholly
Owned Restricted Subsidiaries of such Person.

          SECTION 1.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Affiliate Transaction”

	 	 	4.07	(a)
	 
	 	 	 	 
	“Appendix”

	 	 	2.01	 
	 
	 	 	 	 
	“Bankruptcy Law”

	 	 	6.01	(c)

32

 

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Change of Control Offer”

	 	 	4.09	(a)
	 
	 	 	 	 
	“Change of Control Payment”

	 	 	4.09	(a)
	 
	 	 	 	 
	“Change of Control Payment Date”

	 	 	4.09	(a)
	 
	 	 	 	 
	“Company”

	 	 	Preamble

	 
	 	 	 	 
	“Covenant Defeasance”

	 	 	8.02	(a)
	 
	 	 	 	 
	“Credit Facility Indebtedness”

	 	 	4.03	(b)(i)
	 
	 	 	 	 
	“Custodian”

	 	 	6.01	(c)
	 
	 	 	 	 
	“Definitive Note”

	 	 	Appendix

	 
	 	 	 	 
	“Event of Default”

	 	 	6.01 	(a)
	 
	 	 	 	 
	“Excess Cash Flow Offer”

	 	 	4.10	(a)
	 
	 	 	 	 
	“Excess Cash Flow Offer Amount”

	 	 	4.10	(a)
	 
	 	 	 	 
	“Excess Cash Flow Payment”

	 	 	4.10	(a)
	 
	 	 	 	 
	“Excess Cash Flow Payment Date”

	 	 	4.10	(b)
	 
	 	 	 	 
	“Exchange Notes”

	 	 	Appendix

	 
	 	 	 	 
	“Guaranteed Obligations”

	 	 	10.01	 
	 
	 	 	 	 
	“incur”

	 	 	4.03	(a)
	 
	 	 	 	 
	“Initial Notes”

	 	 	Appendix

	 
	 	 	 	 
	“Legal Defeasance”

	 	 	8.02	(a)
	 
	 	 	 	 
	“Paying Agent”

	 	 	2.03	 
	 
	 	 	 	 
	“Permitted Indebtedness”

	 	 	4.03 	(b)
	 
	 	 	 	 
	“Private Exchange Notes”

	 	 	Appendix

	 
	 	 	 	 
	“Public Offering Offer”

	 	 	4.11 	(a)
	 
	 	 	 	 
	“Public Offering Offer Amount”

	 	 	4.11 	(a)

33

 

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Public Offering Offer Payment”

	 	 	4.11 	(a)
	 
	 	 	 	 
	“Public Offering Offer Payment Date”

	 	 	4.11	(b)
	 
	 	 	 	 
	“Ratio Indebtedness”

	 	 	4.03	(a)
	 
	 	 	 	 
	“Redemption Date”

	 	 	1.01	 
	 
	 	 	 	 
	“Replacement Notes”

	 	 	Appendix

	 
	 	 	 	 
	“Restricted Payments”

	 	 	4.04	(a)
	 
	 	 	 	 
	“Registrar”

	 	 	2.03	 
	 
	 	 	 	 
	“Rule 3-16”

	 	 	4.14	(b)

          SECTION 1.03. Incorporation by Reference of Trust Indenture Act. This Indenture
is subject to the provisions of the TIA, other than TIA §314(d) and TIA §314(b) (which shall not be
applicable to this Indenture unless it is qualified under the TIA), that, pursuant to TIA § 318(c),
govern indentures qualified under the TIA, which provisions (other than TIA §314(d) and TIA
§314(b), which shall not be applicable to this Indenture unless it is qualified under the TIA) are
incorporated by reference in and made a part of this Indenture. The following TIA terms have the
following meanings:

          “Commission” means the SEC;

          “indenture securities” means the Notes and the Guarantees;

          “indenture security holder” means a Holder;

          “indenture to be qualified” means this Indenture;

          “indenture trustee” or “institutional trustee” means the Trustee;
and

          “obligor” on the indenture securities means the Issuer, each Guarantor and any other
obligor on the indenture securities.

          All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them by
such definitions.

34

 

          SECTION 1.04. Rules of Construction. Unless the context otherwise requires:

     (i) a term has the meaning assigned to it;

     (ii) an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP;

     (iii) “or” is not exclusive;

     (iv) “including” means including without limitation;

     (v) words in the singular include the plural and words in the plural include
the singular;

     (vi) unsecured Indebtedness shall not be deemed to be subordinate or junior to
secured Indebtedness merely by virtue of its nature as unsecured Indebtedness;

     (vii) secured Indebtedness shall not be deemed to be subordinate or junior to
any other secured Indebtedness merely because it has a junior priority with respect
to the same collateral;

     (viii) the principal amount of any non-interest bearing or other
discount security at any date shall be the principal amount thereof that
would be shown on a balance sheet of the Company dated such date prepared in
accordance with GAAP;

     (ix) all references to the date the Notes were originally issued shall refer
to the Issue Date;

     (x) “herein,” “hereof” and other words of similar import refer to this
Indenture as a whole and not to any particular Section, Article or other
subdivision;

     (xi) all references to Sections or Articles are to Sections or Articles of or
to this Indenture unless otherwise indicated;

     (xii) references to sections of or rules under the Securities Act, the Exchange
Act or the TIA shall be deemed to include substitute, replacement or successor
sections or rules as in effect from time to time; and

     (xiii) all references in this Indenture, in any context, to any interest or
other amount payable on or with respect to any Notes shall be deemed to include any
additional interest pursuant to the Registration Rights

35

 

Agreement or any similar registration rights agreement, if any, with respect
to any Additional Notes.

ARTICLE II

The Notes

          SECTION 2.01. Form and Dating. Provisions relating to the Initial Notes and the
Exchange Notes are set forth in the Rule 144A/Regulation S Appendix attached hereto (the
“Appendix”) which is hereby incorporated in, and expressly made part of, this Indenture. The
Initial Notes and the Trustee’s certificate of authentication with respect thereto shall be
substantially in the form of Exhibit I to the Appendix, which Exhibit I is hereby incorporated in,
and expressly made a part of, this Indenture. The Exchange Notes (if any), the Private Exchange
Notes (if any) and any other Notes other than the Initial Notes and the Trustee’s certificate of
authentication with respect to any such Exchange Notes, Private Exchange Notes or other Notes shall
be substantially in the form of Exhibit II to the Appendix, which is hereby incorporated in and
expressly made a part of this Indenture. The Notes may have notations, legends or endorsements
required by law, stock exchange rule, policies or procedures of any applicable depositary,
agreements to which the Issuer, the Company, Intermediate Holdco or any Subsidiary Guarantor is
subject, if any, or usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Issuer). Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in the Appendix and Exhibit I are part of the terms of this Indenture.

          SECTION 2.02. Execution and Authentication. One Officer shall sign the Notes for the
Issuer by manual or facsimile signature. Notes shall be authenticated by the Trustee in accordance
with Section 2.2 of the Appendix.

          If an Officer whose signature is on a Note no longer holds that office at the time the Trustee
authenticates the Note, the Note shall be valid nevertheless.

          A Note shall not be valid until an authorized signatory of the Trustee manually signs
the certificate of authentication on the Note. The signature shall be conclusive evidence
that the Note has been authenticated under this Indenture.

          The Trustee may appoint an authenticating agent reasonably acceptable to the Issuer to
authenticate the Notes. Unless limited by the terms of such appointment, an authenticating agent
may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An authenticating agent has
the same rights as any Registrar, Paying Agent or agent for service of notices and demands.

          SECTION 2.03. Registrar and Paying Agent. The Issuer shall maintain an office or
agency where Notes may be presented for registration of transfer or for exchange (the
“Registrar”) and an office or agency where Notes may be presented for payment (the
“Paying Agent”). The Registrar shall keep a register of the Notes and of

36

 

their transfer and exchange. The Issuer may have one or more co-registrars and one or more
additional paying agents. The term “Registrar” includes any co-registrar, and the term “Paying
Agent” includes any additional paying agent. The Issuer may appoint and change any Paying Agent or
Registrar without notice.

          The Issuer shall enter into an appropriate agency agreement with any Registrar or Paying Agent
not a party to this Indenture, which shall incorporate the terms of the TIA to the extent such
terms are incorporated in this Indenture. The agreement shall implement the provisions of this
Indenture that relate to such agent. The Issuer shall notify the Trustee of the name and address of
any such agent. If the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act
as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. The
Issuer, the Company or any Wholly Owned Restricted Subsidiary of the Company incorporated or
organized within the United States of America may act as Paying Agent or Registrar.

          The Issuer initially appoints the Trustee as Registrar and Paying Agent in connection with the
Notes.

          SECTION
2.04. Paying Agent To Hold Money in Trust. By no later than 10:00 a.m. (New
York City time) on the date on which any principal, premium, if any, or interest on any Note is due
and payable, the Issuer shall deposit with the Paying Agent a sum sufficient to pay such principal,
premium, if any, and interest when so becoming due. The Issuer shall require each Paying Agent
(other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the
benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal
of or premium, if any, or interest on the Notes and shall notify the Trustee of any default by the
Issuer in making any such payment. If the Issuer, the Company or a Subsidiary acts as Paying Agent,
it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The
Issuer at any time may require a Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed by the Paying Agent. Upon complying with this Section, the Paying
Agent shall have no further liability for the money delivered to the Trustee.

          SECTION 2.05. Holder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of Holders.
If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee, in writing at least
five Business Days before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of Holders.

          SECTION 2.06. Transfer and Exchange. The Notes shall be issued in registered form and
shall be transferable only upon the surrender of a Note for registration of transfer. When a Note
is presented to the Registrar with a request to register a transfer, the Registrar shall register
the transfer as requested if the requirements of this Indenture. When Notes are presented to the
Registrar with a request to exchange them for an equal principal amount of Notes of other
denominations, the Registrar shall

37

 

make the exchange as requested if the same requirements are met. The Issuer is not required to
transfer or exchange any Note selected for redemption (except, in the case of a Note to be redeemed
in part, the portion of the Note not to be redeemed) or any Note for a period of 15 days before a
selection of Notes to be redeemed or 15 days before an interest payment date.

          SECTION 2.07. Replacement Notes. If a mutilated Note is surrendered to the Registrar
or if the Holder of a Note claims that the Note has been lost, destroyed or wrongfully taken, the
Issuer shall issue and the Trustee shall authenticate a replacement Note in replacement thereof if
the Holder satisfies any reasonable requirements of the Trustee. If required by the Trustee or the
Issuer, such Holder shall furnish an indemnity bond sufficient in the judgment of the Issuer and
the Trustee to protect the Issuer, the Trustee, the Paying Agent and the Registrar from any loss
which any of them may suffer if a Note is replaced. The Issuer and the Trustee may charge the
Holder for their expenses in replacing a Note.

          Every such replacement Note is an additional Obligation of the Issuer.

          SECTION 2.08. Outstanding Notes. Notes outstanding at any time are all Notes
authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section as not outstanding. A Note does not cease to be
outstanding because the Issuer or an Affiliate of the Issuer holds the Note.

          If a Note is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee
and the Issuer receive proof satisfactory to them that the replaced Note is held by a protected
purchaser (as defined in Section 8-303 of the Uniform Commercial Code).

          If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
Redemption Date or maturity date money sufficient to pay all principal, premium, if any, and
interest payable on that date with respect to the Notes (or portions thereof) to be redeemed or
maturing, as the case may be, then on and after that date such Notes (or portions thereof) cease to
be outstanding and interest on them ceases to accrue.

          SECTION 2.09. Temporary Notes. Until definitive Notes are ready for delivery, the
Issuer may prepare and the Trustee shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form of definitive Notes but may have variations that the Issuer considers
appropriate for temporary Notes. Without unreasonable delay, the Issuer shall prepare and the
Trustee shall authenticate definitive Notes and deliver them in exchange for temporary Notes.

          SECTION 2.10. Cancellation. The Issuer at any time may deliver Notes to the Trustee
for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else
shall cancel and destroy (subject to the record retention requirements of the Exchange Act) all
Notes surrendered for registration of transfer, exchange, payment or cancellation and deliver a
certificate of such destruction to the

38

 

Issuer unless the Issuer directs the Trustee to deliver canceled Notes to the Issuer. The Issuer
may not issue new Notes to replace Notes it has redeemed, paid or delivered to the Trustee for
cancellation.

          SECTION 2.11. Registered Holders. Notwithstanding anything to the contrary in this
Indenture, the registered Holder of a Note shall be treated as the owner thereof for all purposes,
and no transfer of a Note shall be effective unless entered in the register kept by the Registrar
pursuant to Section 2.03.

          SECTION
2.12. CUSIP Numbers, ISINs, etc. The Issuer in issuing the Notes may use CUSIP
numbers, ISINs and “Common Code” numbers (in each case if then generally in use) and, if so, the
Trustee shall use CUSIP numbers, ISINs and “Common Code” numbers in notices of redemption as a
convenience to Holders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Notes or as
contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not be affected by any
defect in or omission of such numbers. The Issuer shall advise the Trustee in writing of any change
in any CUSIP numbers, ISINs or “Common Code” numbers applicable to the Notes.

          SECTION 2.13. Issuance of Additional Notes. After the Issue Date, the Issuer shall be
entitled, subject to its compliance with Section 4.03 and Section 4.12, to issue Additional Notes
under this Indenture, which Notes shall have identical terms as the Initial Notes issued on the
Issue Date, other than with respect to the date of issuance and issue price. All the Notes issued
under this Indenture shall be treated as a single class for all purposes of this Indenture,
including waivers, amendments, redemptions and offers to purchase.

          With respect to any Additional Notes, the Issuer shall set forth in a resolution of the Board
of Directors and an Officers’ Certificate, a copy of each which shall be delivered to the Trustee,
the following information:

          (a) the aggregate principal amount of such Additional Notes to be authenticated and delivered
pursuant to this Indenture and the provision of Section 4.03 that the Issuer is relying on to issue
such Additional Notes; and

          (b) the issue price, the issue date and the CUSIP number of such Additional Notes;
provided, however, that no Additional Notes may be issued at a price that would
cause such Additional Notes to not be fungible for U.S. Federal income tax purposes with any other
Notes issued under this Indenture.

          SECTION 2.14. Defaulted Interest. If the Issuer defaults in a payment of interest on
the Notes, the Issuer shall pay defaulted interest (plus interest on such defaulted interest to the
extent lawful) in any lawful manner. The Issuer may pay the defaulted interest to the persons who
are Holders on a subsequent special record date. The Issuer shall fix or cause to be fixed any such
special record date and payment date to the reasonable satisfaction of the Trustee and shall
promptly mail to each Holder a notice

39

 

that states the special record date, the payment date and the amount of defaulted interest to be
paid.

ARTICLE III

Redemption

          SECTION 3.01. Notices to Trustee. If the Issuer elects to redeem Notes pursuant to
Section 3.07, it shall notify the Trustee in writing of the applicable Redemption Date, the
principal amount of Notes to be redeemed and the paragraph of Section 3.07 pursuant to which the
redemption will occur.

          The Issuer shall give each notice to the Trustee provided for in this Section at least 45 days
before the applicable Redemption Date unless the Trustee consents to a shorter period. Such notice
shall be accompanied by an Officers’ Certificate to the effect that such redemption shall comply
with the conditions herein.

          SECTION 3.02. Selection of Notes to Be Redeemed. If less than all of the Notes are to
be redeemed at any time, selection of Notes for redemption shall be made by the Trustee in
compliance with the requirements of the principal national securities exchange, if any, on which
the Notes are listed, or, if the Notes are not so listed, on a pro rata basis, by lot or by such
method as the Trustee shall deem fair and appropriate (in any case subject to the rules and
procedures of the applicable depositary); provided, however, that no Notes of
$2,000 or less shall be redeemed in part. Notes in denominations larger than $2,000 principal
amount may be redeemed in part, but only in whole multiples of $1,000.

          SECTION 3.03. Notice of Redemption. Notices of redemption shall be mailed by
first-class mail (in the case held in book-entry form by electronic transmission) at least 30 but
not more than 60 days before the applicable Redemption Date to each Holder of Notes to be redeemed
at its registered address. The Issuer may provide in such notice that payment of the redemption
price and performance of the Issuer’s obligations with respect thereto may be performed by another
Person. Notices of redemption may not be conditional; provided, however, that
notice of any redemption in connection with a redemption pursuant to Section 3.07(c) may be given
prior to the completion of the related public offering, and any such redemption or notice may, at
the Issuer’s discretion, be subject to one or more conditions precedent, including completion of
the related public offering.

          SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is mailed,
Notes called for redemption become due and payable on the Redemption Date and at the redemption
price stated in the notice. Upon surrender to the Paying Agent, such Notes shall be paid at the
redemption price stated in the notice, plus accrued interest to but excluding the applicable
Redemption Date (subject to the right of Holders of record on the relevant record date to receive
interest due on the related interest payment date), and such Notes shall be canceled by the
Trustee. Failure to give notice or

40

 

any defect in the notice to any Holder shall not affect the validity of the notice to any other
Holder.

          SECTION 3.05. Deposit of Redemption Price. By no later than 10:00 a.m. (New York City
time) on the applicable Redemption Date, the Issuer shall deposit with the Paying Agent (or, if the
Issuer, the Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust) money
sufficient to pay the redemption price of and accrued interest on all Notes to be redeemed on that
date other than Notes or portions of Notes called for redemption which have been delivered by the
Issuer to the Trustee for cancellation.

          SECTION 3.06. Notes Redeemed in Part. If any Note is to be redeemed in part only, the
notice of redemption that relates to such Note shall state the portion of the principal amount
thereof to be redeemed. A new Note in principal amount equal to the unredeemed portion thereof
shall be issued in the name of the Holder thereof upon cancellation of the original Note. Notes
called for redemption become due on the applicable Redemption Date. On and after the applicable
Redemption Date, interest ceases to accrue on Notes or portions of them called for redemption
unless the Issuer defaults on its obligation to redeem such Notes.

          SECTION
3.07. Optional Redemption. (a) At any time and from time to time prior to
August 15, 2014, the Notes may be redeemed at the Issuer’s option, in whole or in part, at a
redemption price equal to 100.0% of the principal amount of the Notes redeemed, plus accrued and
unpaid interest thereon, if any, to but excluding the applicable Redemption Date, subject to the
rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date, plus the Applicable Premium as of the applicable Redemption Date.

          (b) On and after August 15, 2014, the Notes may be redeemed, at the Issuer’s option, in whole
or in part, at any time and from time to time, at the redemption prices set forth below. The Notes
shall be redeemable at the redemption prices (expressed as percentages of principal amount of the
Notes to be redeemed) set forth below plus accrued and unpaid interest thereon, if any, to but
excluding the applicable Redemption Date, subject to the right of Holders of Notes on the relevant
record date to receive interest due on the relevant interest payment date, if redeemed during the
12-month period beginning on August 15 of each of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	2014

	 	 	106.000	%
	 
	 	 	 	 
	2015

	 	 	103.000	%
	 
	 	 	 	 
	2016 and thereafter

	 	 	100.000	%

41

 

          (c) At any time on or prior to August 15, 2013, the Issuer may on any one or more
occasions redeem up to an aggregate of 35.0% of the aggregate principal amount of the Notes at a
redemption price equal to 112.000% of the principal amount of the Notes redeemed, plus accrued and
unpaid interest thereon, if any, to but excluding the applicable Redemption Date, subject to the
rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date, with the Net Cash Proceeds of a public offering of common stock of the
Issuer; provided, however, that (i) the Issuer shall have previously made and
consummated any Public Offering Offer required to be made pursuant to Section 4.11 in connection
with such public offering, (ii) at least 65% in aggregate principal amount of the aggregate amount
of Notes originally issued under this Indenture (including any Additional Notes) remains
outstanding immediately after the occurrence of such redemption and (iii) such redemption occurs
within 90 days of the date of the closing of such public offering.

          (d) If the Redemption Date with respect to a Note to be redeemed is on or after an interest
record date and on or before the related interest payment date, any accrued and unpaid interest on
that Note shall be payable to the Person that was, at the close of business on such record date,
the Holder of that Note, and no additional interest for the period to which that interest record
date relates shall be payable with respect to that Note.

ARTICLE IV

Covenants

          SECTION 4.01. Payment of Notes. The Issuer shall promptly pay the principal of and
premium, if any, and interest on the Notes on the dates and in the manner provided in the Notes and
in this Indenture. Principal, premium, if any, and interest shall be considered paid on the date
due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture money
sufficient to pay all principal, premium, if any, and interest then due.

          SECTION
4.02. SEC Reports. (a) Whether or not the Company is subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, the Company shall file with the SEC
(subject to the next sentence) and provide the Trustee and Holders with such annual and other
reports as are specified in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S.
corporation subject to such Sections, such reports to be so filed and provided at the times
specified for the filings of such reports under such Sections and containing all the information,
audit reports and exhibits required for such reports. If, at any time, the Company is not subject
to the periodic reporting requirements of the Exchange Act for any reason, the Company shall
nevertheless continue filing the reports specified in the preceding sentence with the SEC within
the time periods required unless the SEC will not accept such a filing. The Company shall not take
any action for the purpose of causing the SEC not to accept such filings. If, notwithstanding the
foregoing, the SEC will not accept such filings for any reason, the Company will post such reports
on its website within the time periods that

42

 

would apply if the Company were required to file those reports with the SEC. In addition, to the
extent not satisfied by the foregoing, the Company shall, for so long as any Notes are outstanding,
furnish to Holders and to securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

          (b) Notwithstanding Section 4.02(a), such requirements to file such reports shall be deemed
satisfied prior to the first anniversary of the Issue Date (1) to the extent the information
required by such reports is contained in the exchange offer registration statement or shelf
registration statement required by the Registration Rights Agreement then on file with the SEC,
including amendments thereto, or (2) by posting on its website within 15 days of the time periods
after the Company would have been required to file such reports with the SEC, the financial
information (including a “Management’s Discussion and Analysis of Financial Condition and Results
of Operations” section) that would be required to be included in such reports, subject to
exceptions consistent with the presentation of financial information in the Offering Circular.

          SECTION
4.03. Limitation on Indebtedness. (a) The Company shall not and shall not
permit any Restricted Subsidiary to, directly or indirectly, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with
respect to (collectively, “incur”) any Indebtedness;
provided, however, that the Company, the Issuer or any Subsidiary Guarantor will be entitled to incur Indebtedness
if, on the date of such incurrence and after giving effect thereto on a pro forma basis, the Fixed
Charge Coverage Ratio exceeds 2.0 to 1.0 (any Indebtedness incurred pursuant to this Section
4.03(a) being herein referred to as “Ratio Indebtedness”).

          (b) Section 4.03(a) shall not apply to the incurrence of any of the following items
of Indebtedness (collectively, “Permitted Indebtedness”):

     (i) Indebtedness incurred pursuant to any Credit Facility, including the
Guarantees thereof by the Guarantors, in an aggregate amount outstanding at any
time not to exceed $25,000,000 (any Indebtedness incurred pursuant to the
provisions set forth in this clause (i) being herein referred to as “Credit
Facility Indebtedness”);

     (ii) Indebtedness represented by the Notes issued on the Issue Date and the
related Notes Guarantees;

     (iii) Nonrecourse Indebtedness incurred by a Special Purpose Subsidiary under
a Permitted Securitization and any Refinancing Indebtedness of such Special Purpose
Subsidiary with respect thereto that is Nonrecourse Indebtedness;

43

 

     (iv) Indebtedness of the Company or any Restricted Subsidiary existing on the Issue Date
(other than Indebtedness set forth in clauses (i), (ii) and (iii) of this Section 4.03(b));

     (v) Refinancing Indebtedness incurred by the Company or any Restricted Subsidiaries to
Refinance any Indebtedness that was incurred as Ratio Indebtedness or as Permitted Indebtedness
pursuant to clause (ii), (iv) or (v) of this Section 4.03(b);

     (vi) Indebtedness owing to and held by the Company or any Restricted Subsidiaries;
provided, however, that (A) if the Company or the Guarantor is the obligor on such
Indebtedness, such Indebtedness is expressly subordinated to the prior payment in full in cash of
all Notes Obligations and (B)(l) any subsequent issuance or transfer of Equity Interests that
results in any such Indebtedness being owed to or held by a Person other than the Company or a
Restricted Subsidiary and (2) any sale or other transfer of any such Indebtedness to a Person that
is neither the Company nor a Restricted Subsidiary shall be deemed, in each case, to constitute an
incurrence of such Indebtedness by the Company or such Restricted Subsidiary, as the case may be,
that was not permitted by this clause (vi);

     (vii) Hedging Obligations incurred in the ordinary course of business and not for
speculative purposes;

     (viii) Guarantees of the Notes and Guarantees of Indebtedness that was incurred as Ratio
Indebtedness or as Permitted Indebtedness pursuant to clause (v) (to the extent the Refinanced
Indebtedness was so guaranteed), (vii), (ix), (x), (xi), (xiii) or (xv) of this Section 4.03(b);
provided, however, that if the Indebtedness being Guaranteed is subordinated in
right of payment to the Notes or a Notes Guarantee, then such Guarantee shall be subordinated in
right of payment to the Notes or such Notes Guarantee to the same extent as the Indebtedness
guaranteed;

     (ix) Indebtedness constituting reimbursement obligations with respect to letters of credit
issued in the ordinary course of business, including letters of credit in respect of workers’
compensation claims, health, disability or other employee benefits or property, casualty or
liability insurance or self-insurance, or other Indebtedness with respect to obligations in the
nature of reimbursement obligations regarding workers’ compensation claims;

     (x) Indebtedness arising from agreements of the Company or any Restricted Subsidiary providing
for indemnification, adjustment of purchase price or similar obligations, in each case incurred in
connection with the disposition of any business, assets or a Subsidiary;

44

 

     (xi) obligations in respect of performance, bid, appeal, surety and
similar bonds and completion guarantees provided by the Company or any Restricted
Subsidiary in the ordinary course of business;

     (xii) Indebtedness arising from the honoring by a bank or other financial
institution of a check, draft or similar instrument drawn against insufficient funds
in the ordinary course of business; provided, however, that such
Indebtedness is extinguished within five Business Days of its Incurrence;

     (xiii) Indebtedness represented by Capital Lease Obligations, mortgage financings
or purchase money obligations, in each case incurred for the purpose of financing all
or any part of the purchase price or cost of construction or improvement of property,
plant or equipment used or useful in a Related Business (where, in the case of a
purchase, such purchase may be effected either directly or through the purchase of the
Capital Stock of the Person owning such property, plant or equipment), and any
Indebtedness incurred to Refinance such Indebtedness, in an aggregate amount at any
time outstanding not in excess of $10,000,000;

     (xiv) Acquired Indebtedness; provided, however, that, after
giving effect to the merger or acquisition giving rise to the incurrence thereof,
immediately after such merger or acquisition the Company would be permitted to incur
at least $1.00 of additional Ratio Indebtedness pursuant to Section 4.03(a); and

     (xv) additional Indebtedness of the Company, the Issuer or any Subsidiary
Guarantor in an aggregate amount at any time outstanding not in excess $10,000,000.

          (c) The Company and the Issuer shall not, and shall not permit any Subsidiary Guarantor to,
incur any Indebtedness that is contractually subordinated to any Indebtedness of the Company, the
Issuer or such Guarantor unless such Indebtedness is also contractually subordinated to the Notes
or the applicable Notes Guarantee on substantially identical terms; provided,
however, that no Indebtedness shall be deemed to be contractually subordinated to any
other Indebtedness solely by virtue of being unsecured or having a junior security interest in
shared collateral.

          (d) For purposes of determining compliance with this Section 4.03,

     (i) in the event that an item of Indebtedness meets the criteria of more than
one of the categories of Permitted Indebtedness set forth in Section 4.03(b) or is
entitled to be incurred as Ratio Indebtedness, the Company shall, in
its sole discretion, classify such item of Indebtedness (or any portion thereof) in
any manner that complies with this Section 4.03, and such item of Indebtedness (or
any portion thereof) shall be treated as having been incurred pursuant to the
provisions set forth in

45

 

only one of such clauses or pursuant to Section 4.03(a); provided,
however, that the Notes issued on the Issue Date shall be deemed to have
been incurred as Permitted Indebtedness pursuant to Section 4.03(b)(ii);

     (ii) the Company shall be entitled to divide and classify an item of
Indebtedness in more than one of the types of Indebtedness set forth above; and

     (iii) any Permitted Indebtedness originally classified as incurred pursuant to
the provisions set forth in one of the clauses of Section 4.03(b) (other than pursuant
to clause (i), (ii) or (iii) of Section 4.03(b)) may later be reclassified by the
Company such that it shall be deemed to have been incurred as Ratio Indebtedness
pursuant to Section 4.03(a) or as Permitted Indebtedness pursuant to another clause of
Section 4.03(b), as applicable, to the extent that such reclassified Indebtedness
could be incurred pursuant to such paragraph or clause at the time of such
reclassification.

          (e) Accrual of interest, the accretion of accreted value, the payment of interest or dividends
in the form of additional Indebtedness of the same instrument, accretion of original issue discount
or liquidation preference and increases in the amount of Indebtedness outstanding solely as a
result of fluctuations in interest rates or in the exchange rate of currencies shall not be deemed
to be an incurrence of Indebtedness for purposes of this Indenture. Guarantees of, or obligations
in respect of letters of credit relating to, Indebtedness that is otherwise included in the
determination of a particular amount of Indebtedness shall not be included in the determination of
such amount of Indebtedness; provided, however, that the incurrence of the
Indebtedness underlying such Guarantee or letter of credit, as the case may be, was subject to and
in compliance with this Section 4.03.

          (f) For purposes of determining compliance with any U.S. dollar restriction on the incurrence
of Indebtedness where the Indebtedness incurred is denominated in a different currency, the amount
of such Indebtedness shall be the U.S. Dollar Equivalent determined on the date of the incurrence
of such Indebtedness; provided, however, that if any such Indebtedness denominated
in a different currency is subject to a currency agreement with respect to U.S. dollars covering
all principal, premium, if any, and interest payable on such Indebtedness, the amount of such
Indebtedness expressed in U.S. dollars shall be as provided in such currency agreement. The
maximum amount of Indebtedness that the Company and the Restricted Subsidiaries may incur pursuant
to this Section 4.03 shall not be deemed to be exceeded, with respect to any outstanding
Indebtedness, solely as a result of fluctuations in interest rates or the exchange rate of
currencies.

          SECTION 4.04. Limitation on Restricted Payments. (a) The Company shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly,

     (i) declare or pay any dividends or make any other distributions of any sort in
respect of its Equity Interests (including any payment in

46

 

connection with any merger or consolidation involving such Person) or similar
payment to the direct or indirect holders of its Equity Interests (other than (A)
dividends or distributions payable solely in Qualified Equity Interests of the
Company, (B) dividends or distributions payable solely to the Company or a Restricted
Subsidiary and (C) pro rata dividends or other distributions made by a Subsidiary
that is not a Wholly Owned Restricted Subsidiary to minority stockholders (or owners
of minority interests in the case of a Subsidiary that is an entity other than a
corporation));

     (ii) purchase, repurchase, redeem, defease or make any other acquisition or
retirement for value of any Equity Interests of the Company held by any Person (other
than by a Restricted Subsidiary) or of any Equity Interests of a Restricted Subsidiary
held by any Affiliate of the Company (other than by a Restricted Subsidiary),
including in connection with any merger or consolidation and including the exercise of
any option to exchange any Equity Interests (other than into Qualified Equity
Interests of the Company);

     (iii) purchase, repurchase, redeem, defease or make any other acquisition or
retirement for value, prior to scheduled maturity, scheduled repayment, principal
installment or scheduled sinking fund payment of any Subordinated Obligations of the
Company, the Issuer or any Subsidiary Guarantor (other than (A) from the Company or a
Restricted Subsidiary or (B) the purchase, repurchase, redemption, defeasance or
other acquisition or retirement of Subordinated Obligations purchased in anticipation
of satisfying a sinking fund obligation, principal installment or final maturity, in
each case due within one year of the date of such purchase, repurchase, redemption,
defeasance or other acquisition or retirement); or

     (iv) make any Investment (other than a Permitted Investment) in any Person,

(all such payments and other actions set forth in clauses (i) through (iv) of this Section
4.04(a) being collectively referred to as “Restricted Payments”) unless, at the time of
and after giving effect to such Restricted Payment:

     (1) no Default shall have occurred and be continuing (or would result
therefrom);

     (2) the Company is entitled to Incur an additional $1.00 of Ratio
Indebtedness pursuant to Section 4.03(a); and

     (3) the aggregate amount of such Restricted Payment and all other
Restricted Payments since the Issue Date would not exceed the sum of (without
duplication):

47

 

     (A) 50.0% of the Consolidated Net Income accrued during the period
(treated as one accounting period) from April 1, 2010 to the end of the most
recent fiscal quarter ending immediately prior to the date of such Restricted
Payment (or, in case such Consolidated Net Income shall be a deficit, minus
100.0% of such deficit); plus

     (B) 100.0% of the aggregate Net Cash Proceeds or Fair Market Value
of any asset (other than cash) received by the Company either (x) from the
issuance or sale of its Qualified Equity Interests subsequent to the Issue Date
(but excluding the issuance or sale of Qualified Equity Interests in the
Concurrent Equity Transaction) or (y) as a contribution in respect of its
Qualified Equity Interests from its equity holders subsequent to the Issue
Date, but excluding in each case any Net Cash Proceeds that are used to redeem
Notes in accordance with Section 3.07(c) or are used to purchase Notes in
accordance with a Public Offering Offer; plus

     (C) the amount by which the principal amount of
Indebtedness of the Company (other than Nonrecourse Indebtedness and
Indebtedness owing to a Subsidiary) is reduced upon the conversion or
exchange subsequent to the Issue Date of any Indebtedness of the
Company converted or exchanged for Qualified Equity Interests of the
Company (less the amount of any cash, or the fair value of any other
property, distributed by the Company upon such conversion or
exchange); provided, however, that the foregoing
amount shall not exceed the gross proceeds (prior to fees and
transaction expenses) received by the Company or any Restricted
Subsidiary from the sale of such Indebtedness (excluding such gross
proceeds from sales to a Subsidiary of the Company or to a Company
Equity Plan); plus

     (D) an amount equal to the sum of (x) the aggregate amount of cash
and the Fair Market Value of any asset (other than cash) received by the
Company or any Restricted Subsidiary subsequent to the Issue Date with respect
to Investments (other than Permitted Investments) made by the Company or any
Restricted Subsidiary in any Person subsequent to the Issue Date and resulting
from repurchases, repayments, liquidations or redemptions of such Investments
by such Person, proceeds realized on the sale of such Investment and proceeds
representing the return of capital, and (y) in the event that the Company
redesignates an Unrestricted Subsidiary to be a Restricted Subsidiary, the
portion (proportionate to the Company’s equity interest in such Subsidiary) of
the Fair Market Value of the net assets of such Unrestricted

48

 

Subsidiary at the time such Unrestricted Subsidiary is designated a
Restricted Subsidiary; provided, however, that the foregoing
sum shall not exceed, in the case of any such Person or Unrestricted
Subsidiary, the amount of Investments (excluding Permitted Investments)
previously made by the Company or any Restricted Subsidiary in such Person or
Unrestricted Subsidiary.

     (b) The foregoing provisions shall not prohibit:

     (i) any Restricted Payment made out of the Net Cash Proceeds of the substantially
concurrent sale of, or made in exchange for, Qualified Equity Interests of the Company
or a substantially concurrent cash capital contribution received by the Company from
its equity holders with respect to its Qualified Equity Interests, including the
Concurrent Equity Transaction; provided, however, that
(A) such Restricted Payment shall be excluded in the calculation of the amount of
Restricted Payments and (B) the Net Cash Proceeds from such sale or such cash capital
contribution (to the extent so used for such Restricted Payment) shall be excluded
from the calculation of amounts under Section 4.04(a)(3)(B);

     (ii) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of Subordinated Obligations of a Person made in exchange for, or
out of the proceeds of the substantially concurrent incurrence of, Indebtedness of
such Person which is permitted to be incurred pursuant to Section 4.03;
provided, however, that such purchase, repurchase, redemption,
defeasance or other acquisition or retirement for value shall be excluded in the
calculation of the amount of Restricted Payments;

     (iii) the payment of any dividend, distribution or redemption of any Equity
Interests or Subordinated Indebtedness within 60 days after the date of declaration
thereof or call for redemption if, at such date of declaration or call for redemption,
such payment or redemption was permitted by Section 4.04(a) (the declaration of such
payment shall be deemed a Restricted Payment under Section 4.04(a) as of
the date of declaration and the payment itself shall be deemed to have been paid on
such date of declaration and shall not also be deemed a Restricted Payment under
Section 4.04(a)); provided, however, that any Restricted Payment made
in reliance on the provisions set forth in this clause (iii) shall reduce the amount
available for Restricted Payments pursuant to Section 4.04(a)(3) only once;

     (iv) the declaration and payments of dividends on Disqualified Stock issued
pursuant to Section 4.03; provided, however, that such dividends
shall be excluded in the calculation of the amount of Restricted Payments;

49

 

     (v) repurchases of Equity Interests deemed to occur upon exercise of stock
options if such Equity Interests represents a portion of the exercise price of such
options; provided, however, that such Restricted Payments shall be
excluded in the calculation of the amount of Restricted Payments;

     (vi) cash payments in lieu of the issuance of fractional shares in connection
with the exercise of warrants, options or other securities convertible into or
exchangeable for Equity Interests of the Company in an aggregate amount not in excess
of $500,000; provided, however, that any such cash payment shall not
be for the purpose of evading the limitation of this Section 4.04 (as determined in
good faith by the Board of Directors); provided further, however, that
such payments shall be excluded in the calculation of the amount of Restricted
Payments;

     (vii) in the event of a Change of Control, and if no Default shall have occurred
and be continuing, the payment, purchase, redemption, defeasance, discharge,
cash-collateralization or other acquisition or retirement of Subordinated
Obligations, in each case, at a purchase price not greater than 101.0% of the
principal amount of such Subordinated Obligations, plus any accrued and unpaid
interest thereon; provided, however, that prior to such payment,
purchase, redemption; defeasance, discharge, cash-collateralization or other
acquisition or retirement, the Company (or a third party to the extent permitted by
this Indenture) has made a Change of Control Offer with respect to the Notes as a
result of such Change of Control and has repurchased (or deposited with the Trustee
funds sufficient to repurchase) all Notes validly tendered and not withdrawn in
connection with such Change of Control Offer; provided further,
however, that such payments, purchases, redemptions, defeasances, discharges,
cash-collateralizations or other acquisitions or retirements shall be included in the
calculation of the amount of Restricted Payments;

     (viii) payments of intercompany subordinated Permitted Indebtedness, the
incurrence of which was permitted by Section 4.03(b)(vi); provided,
however, with respect to payments other than to the Company or a Guarantor,
that no Default has occurred and is continuing or would otherwise result therefrom;
provided further, however, that such payments shall be excluded in the
calculation of the amount of Restricted Payment;

     (ix) for each taxable year, distributions to each direct or indirect equity
owner of the Company (each, a “Company Holder”) to satisfy U.S. Federal,
state and local income tax obligations of such Company Holder for such taxable year
in an amount not to exceed the lesser of:

50

 

     (A) the amount of tax distributions provided for in the limited
liability company agreement of the Company as in effect on the Issue Date;
and

     (B) an amount which, when combined with all other tax distributions to
such Company Holder in the current and all preceding taxable years, equals the
product of the highest combined U.S. Federal, state and local marginal income
tax rate applicable to any Company Holder (taking into account the
deductibility of state and local income taxes for U.S. Federal
income tax purposes) and the excess, if any, of (i) the aggregate net taxable
income attributable to the Company and allocated to such Company Holder in the
current and all preceding taxable years over (ii) the aggregate net taxable
loss attributable to the Company and allocated to such Company Holder in all
preceding taxable years;

provided, however, that the Company may make such distributions
after the end of the taxable year or may make quarterly distributions during the
taxable year (subject to adjustment after the end of the year) to reflect estimated
tax obligations of the Company Holders provided that such quarterly distributions
shall not, when taken together, exceed the annual limitations set forth in this
Section 4.04(b)(ix); and provided further, however, that any amounts distributed to a
Company Holder pursuant to this Section 4.04(b)(ix) shall be excluded in the
calculation of the amount of Restricted Payments; or

     (x) other Restricted Payments in an amount which, when taken together with all
other Restricted Payments made pursuant to this clause (x), does not exceed
$5,000,000; provided, however, that such Restricted Payment shall be
excluded in the calculation of the amount of Restricted Payments.

          (c) The amount of all Restricted Payments (other than cash) shall be the Fair Market Value on
the date of the Restricted Payment of the assets (other than cash) proposed to be transferred. In
the event that a Restricted Payment meets the criteria of more than one of the exceptions set forth
in clauses (i) through (x) of Section 4.04(b) or is permitted to be made by Section 4.04(a), the
Company, in its sole discretion, may divide and classify such Restricted Payment in any manner that
complies with this Section 4.04.

          SECTION 4.05. Dividend and Other Payment Restrictions Affecting Subsidiaries. The
Company shall not, and shall not permit any Restricted Subsidiaries to, directly or indirectly,
create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on
the ability of any Restricted Subsidiary to:

     (i) (A) pay dividends or make any other distributions to the Company or any
Restricted Subsidiaries on its Equity Interests or with

51

 

respect to any other interest or participation in, or measured by, its
profits, or (B) pay any Indebtedness owed to the Company or any Restricted
Subsidiaries,

     (ii) make loans or advances to the Company or any Restricted Subsidiaries,
or

     (iii) transfer any of its properties or assets to the Company or any Restricted
Subsidiaries,

except, in each case, for such encumbrances or restrictions existing under or by reason of:

     (1) this Indenture, the Notes and the Security Documents;

     (2) agreements existing on the Issue Date to the extent and in the manner
such agreements are in effect on the Issue Date;

     (3) applicable law;

     (4) any instrument governing Acquired Indebtedness or Equity Interests of
a Person acquired by the Company or any Restricted Subsidiary as in effect at
the time of such acquisition (except to the extent such Indebtedness was
incurred in connection with or in contemplation of such acquisition), which
encumbrance or restriction is not applicable to any Person, or the properties
or assets of any Person, other than the Person, or the property or assets of
the Person, so acquired; provided, however, that, in the case
of an instrument governing Acquired Indebtedness, such Indebtedness was
permitted by the terms of this Indenture to be incurred;

     (5) other Indebtedness of Restricted Subsidiaries that are not Subsidiary
Guarantors pursuant to an agreement governing such Indebtedness, incurred by
such Restricted Subsidiary and permitted to be incurred subsequent to the Issue
Date pursuant to Section 4.03, if (i) the encumbrances and restrictions
contained in any such agreement taken as a whole are not materially more
restrictive to the applicable Restricted Subsidiary than the encumbrances and
restrictions contained in the agreements described in clause (1) or (2) of this
Section 4.05 (as determined in good faith by the Company), or (ii) such
encumbrance or restriction is not materially more restrictive to the applicable
Restricted Subsidiary than is customary in comparable financings (as determined
in good faith by the Company) and either (x) the Company determines in good
faith that such encumbrance or restriction will not materially affect the
Issuer’s ability to make the principal or interest payments on the Notes or (y)
such

52

 

encumbrance or restriction applies only if a default occurs in
respect of a payment or financial covenant relating to such Indebtedness;

     (6) customary non-assignment provisions in leases entered into in the
ordinary course of business and consistent with past practices;

     (7) purchase money obligations for property or assets acquired in the
ordinary course of business that impose restrictions of the nature set forth in
clause (iii) of this Section 4.05 on the property or assets so acquired;

     (8) any encumbrance or restriction in an agreement effecting a
Refinancing of Indebtedness incurred pursuant to an agreement referred to in
clause (1), (2), (4) or (5) of this Section 4.05 or this clause (8) or
contained in any amendment to an agreement enumerated in such clause (1),
(2), (4) or (5) or this clause (8); provided, however, that
the encumbrances and restrictions contained in any such refinancing agreement
or amendment are not materially less favorable to the Company (as determined
by the Board of Directors in its reasonable and good faith judgment) than
encumbrances and restrictions contained in such predecessor agreements;

     (9) the requirements of any Permitted Securitization that are
exclusively applicable to any bankruptcy remote Special Purpose Subsidiary
formed in connection therewith;

     (10) the requirements of any Standard Securitization Undertakings;

     (11) in the case of clause (iii) of this Section 4.05, restrictions
contained in security agreements or mortgages securing Indebtedness of a
Restricted Subsidiary to the extent such restrictions restrict the transfer of
the property subject to the Liens created thereby, or to the extent not
constituting Collateral, the Equity Interests of the Person whose assets
consist, directly or indirectly, primarily of the real property securing such
Indebtedness; provided, however, that such Liens were otherwise
permitted to be incurred under this Indenture;

     (12) restrictions with respect to any Investment imposed in connection
with the making of such Investment;

     (13) any restriction with respect to a Restricted Subsidiary imposed
pursuant to an agreement entered into for the sale or

53

 

disposition of all or substantially all of the Equity Interests or
assets of such Restricted Subsidiary pending the closing of such sale or
disposition; or

     (14) assignment provisions and provisions with respect to the distribution
of assets or property or joint venture or partnership interests in joint
venture or partnership agreements and other similar agreements entered into in
the ordinary course of business that are customary for such agreements;
provided, however, that such provisions in the aggregate, in
the opinion of the management of the Company, do not materially and adversely
affect the ability of the Issuer to make principal or interest payments on the
Notes.

          SECTION 4.06. Limitation on Asset Sales. (a) The Company shall not, and shall not
permit any Restricted Subsidiary to, directly or indirectly, consummate an Asset Sale unless:

     (i) the Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of such Asset Sale at least equal to the Fair Market Value
of the assets or Equity Interests issued or sold or otherwise disposed of;

     (ii) at least 75.0% of the consideration therefor received by the Company or
such Restricted Subsidiary is in the form of cash or Cash Equivalents;

     (iii) an amount equal to 100% of the Net Cash Proceeds from such Asset Sale is
applied by the Company (or such Restricted Subsidiary, as the case may be):

     (A) to the extent the Company elects, to acquire

     Replacement Assets within one year from the later of the date of such Asset
Sale or the receipt of such Net Cash Proceeds; and

     (B) to the extent of the balance of such Net Cash Proceeds after
application in accordance with clause (A) above, to make an offer to the
Holders of the Notes (and to holders of other Applicable Senior Indebtedness
designated by the Company) to purchase Notes (and such other Applicable Senior
Indebtedness) pursuant to and subject to the conditions contained in this
Indenture; provided, however, that in connection with any
purchase of Indebtedness pursuant to this clause (B), the Company or such
Restricted Subsidiary shall permanently retire such Indebtedness and shall
cause the related loan commitment (if any) to be permanently reduced in an
amount equal to the principal amount so purchased; and

54

 

(iv) on a pro forma basis after giving effect to such Asset Sale, no Default
shall have occurred and be continuing (or would result therefrom).

          (b) Notwithstanding Section 4.06(a), the Company and the Restricted Subsidiaries will not be
required to apply any Net Cash Proceeds in accordance with this Section 4.06 except to the extent
that the aggregate Net Cash Proceeds from all Asset Sales which are not applied in accordance with
this covenant exceeds $10,000,000. Pending application of Net Cash Proceeds pursuant to this
Section 4.06, such Net Cash Proceeds shall be invested in cash or Cash Equivalents or applied to
temporarily reduce revolving credit Indebtedness.

For the purposes of this Section 4.06, the following are deemed to be cash or Cash
Equivalents:

(1) the assumption or discharge of Applicable Senior Indebtedness of the Company or any
Restricted Subsidiary and the release of the Company or such Restricted Subsidiary from all
liability on such Indebtedness in connection with such Asset Sale;

(2) any securities received by the Company or any Restricted Subsidiary from the
transferee that are converted by the Company or such Restricted Subsidiary into cash within 180
days of receipt thereof, to the extent of the cash received in that conversion; and

(3) any Designated Non-cash Consideration received by the Company or any Restricted
Subsidiary in such Asset Sale having an aggregate Fair Market Value, taken together with all
other Designated Non-cash Consideration received pursuant to this clause (3) that is at that
time outstanding, not to exceed an amount equal to $10,000,000 at the time of the receipt of
such Designated Non-cash Consideration (with the Fair Market Value of each item of Designated
Non-cash Consideration being measured at the time received and without giving effect to
subsequent changes in value).

The requirement of Section 4.06(a)(iii)(A) will be deemed to be satisfied if an agreement
committing to make the acquisitions or expenditures referred to therein is entered into by the
Company or a Restricted Subsidiary within the time period specified in such clause and such Net
Cash Proceeds is subsequently applied in accordance with such agreement within six months
following the date of such agreement.

          (c) In the event of an Asset Sale that requires the purchase of Notes (and other Applicable
Senior Indebtedness) pursuant to clause (a)(iii)(B) of this Section 4.06, the Issuer will purchase
Notes tendered pursuant to an offer by the Issuer for the Notes (and such other Applicable Senior
Indebtedness) at a purchase price of 100% of their principal amount (or, in the event such other
Applicable Senior Indebtedness was issued with significant original issue discount, 100% of the
accreted value thereof), without premium, plus accrued but unpaid interest (or, in respect of such
other Applicable Senior Indebtedness, such lesser price, if any, as may be provided for by the
terms of such Applicable Senior Indebtedness) in accordance with the procedures (including
prorating

55

 

in the event of oversubscription) set forth in this Indenture. If the aggregate purchase price
of the Indebtedness tendered exceeds the Net Cash Proceeds allotted to its purchase, the Issuer
will select the Indebtedness to be purchased on a pro rata basis but in round
denominations, which in the case of the Notes will be denominations of $2,000 principal amount or
integral multiples of $1,000 in excess thereof. The Issuer shall not be required to make such an
offer to purchase Notes (and other Applicable Senior Indebtedness) pursuant to this covenant if the
Net Cash Proceeds available therefor is less than $15,000,000 (which lesser amount shall be carried
forward for purposes of determining whether such an offer is required with respect to the Net Cash
Proceeds from any subsequent Asset Sale). Upon completion of such an offer to purchase, any
remaining Net Cash Proceeds may be applied by the Company for any purpose otherwise permitted by
this Indenture, and the amount of Net Cash Proceeds shall be reduced by the aggregate amount of the
offer made pursuant to this Section 4.06(c).

          The Issuer shall comply, to the extent applicable, with the requirements of Section 14(e) of
the Exchange Act and any other securities laws or regulations in connection with the repurchase of
Notes pursuant to this Section 4.06. To the extent that the provisions of any securities laws or
regulations conflict with the provisions of this Section 4.06, the Issuer shall comply with the
applicable securities laws and regulations and shall not be deemed to have breached its obligations
under this Section 4.06 by virtue of its compliance with such securities laws or regulations.

          SECTION 4.07. Limitation on Affiliate Transactions. (a) The Company shall not, and
shall not permit any Restricted Subsidiary to, enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property, employee compensation
arrangements or the rendering of any service) with, or for the benefit of, any Affiliate of the
Company (an “Affiliate Transaction”), unless:

     (i) the terms of the Affiliate Transaction are no less favorable to the Company
or such Restricted Subsidiary than those that could be obtained at the time of the
Affiliate Transaction in arm’s-length dealings with a Person who is not an
Affiliate; or

     (ii) if such Affiliate Transaction involves an amount in excess of $1,000,000,
the terms of the Affiliate Transaction are set forth in writing and a majority of the
non-employee members of the Board of Directors of the Company disinterested with
respect to such Affiliate Transaction have determined in good faith that the criteria
set forth in clause (1) are satisfied and have approved the relevant Affiliate
Transaction as evidenced by a resolution of such Board of Directors; and

     (iii) if such Affiliate Transaction involves an amount in excess of $2,500,000,
the Board of Directors of the Company shall also have received a written opinion from
an Independent Qualified Party to the effect that such Affiliate Transaction is fair,
from a financial standpoint, to the Company and its Restricted Subsidiaries or is not
less favorable to the

56

 

Company and its Restricted Subsidiaries than could reasonably be expected to be
obtained at the time in an arm’s-length transaction with a Person who was not an
Affiliate; provided, however, that such an opinion shall not be
required for (x) a management contract entered into between the Company or a
Restricted Subsidiary and an Unrestricted Subsidiary pursuant to which the Company or
such Restricted Subsidiary provides services to such Unrestricted Subsidiary for a
fee or other consideration so long as the owners of any other equity interests in
such Unrestricted Subsidiary are not Affiliates (other than a Restricted Subsidiary)
of the Company or any Restricted Subsidiary (any such Unrestricted Subsidiary being
herein referred to as a “Special Unrestricted Subsidiary”) or (y)
transactions with Guggenheim providing for any financial advisory, financing,
underwriting or placement services or in respect of other lending or investment
banking activities.

          (b) Section 4.07(a) shall not apply to the following:

     (A) any employment, consulting, service, indemnification, termination or
severance agreement or compensation plan or arrangement entered into by the
Company or any Restricted Subsidiary, and the transactions customarily
provided for by any such agreement, plan or arrangement;

     (B) reasonable compensation (including bonuses) and other benefits
(including retirement, health, stock option and other benefit plans and
transactions contemplated thereby) for directors, officers, employees and
consultants of the Company and its Subsidiaries;

     (C) transactions between or among the Company and/or any Restricted
Subsidiaries;

     (D) any transaction with any non-Affiliate that becomes an Affiliate as a
result of such transaction;

     (E) (x) any agreement existing on the Issue Date, as in effect on the
Issue Date, or as modified, amended, amended and restated, supplemented or
replaced so long as the terms of such agreement as modified, amended, amended
and restated, supplemented or replaced, taken as a whole, are not materially
more disadvantageous to the Company and the Restricted Subsidiaries, taken as
a whole, than the terms of such agreement as in effect on the Issue Date, as
determined in good faith by the Board of Directors, and (y) any transaction
provided for by any such agreement;

57

 

     (F) loans or advances to employees or consultants (other than to a
Permitted Holder) in the ordinary course of business or approved by the Board
of Directors, but in any event not to exceed $2,000,000 in the aggregate
outstanding at anyone time, and cancellation or forgiveness or modification of
the terms of such loans or advances;

     (G) the issuance or sale of any Equity Interests (other than Disqualified
Stock) of the Company;

     (H) transactions with a Person that is an Affiliate of the Company or a
Restricted Subsidiary solely because the Company directly or indirectly owns
Equity Interests in, or controls, such Affiliate, other than transactions with
Unrestricted Subsidiaries;

     (I) the transfer of Timeshare Loans and related rights and assets in
connection with any Permitted Securitization, and any other transaction
effected in the ordinary course as part of a Permitted Securitization;

     (J) any Investment (other than a Permitted Investment) or other Restricted
Payment, in each case permitted to be made pursuant to (but only to the extent
included in the calculation of the amount of Restricted Payments made pursuant
to) paragraph (a)(3) of Section 4.04; and

     (K) the acquisition of Vacation Interests and any related rights from a
Special Unrestricted Subsidiary; provided, however, that the
entire consideration for such acquisition consists of cash proceeds that have
been received from the sale by the Company or a Restricted Subsidiary of
Vacation Interests representing the Vacation Interests being so acquired.

          SECTION 4.08. Limitation on Line of Business. The Company shall not, and shall not
permit any Restricted Subsidiary to, engage in any business other than Related Businesses.

          SECTION 4.09. Change of Control. (a) Upon the occurrence of a Change of Control,
unless the Issuer has previously or concurrently mailed a redemption notice with respect to all the
outstanding Notes pursuant to Section 3.07, the Issuer will make an offer to purchase all of the
Notes pursuant to the offer set forth below (the “Change of Control Offer”) at a price in
cash (the “Change of Control Payment”) equal to 101.0% of the aggregate principal amount
thereof plus accrued and unpaid interest to the date of purchase, subject to the right of Holders
of record on the relevant record date to receive interest due on the relevant interest payment
date. Within 30 days following any Change of Control, the Issuer shall send notice of such Change
of Control Offer, with a copy to the Trustee, to each Holder of Notes by first-class mail to the
address of such

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Holder appearing in the security register or otherwise in accordance with the procedures of
DTC, stating: (i) that a Change of Control Offer is being made pursuant to the covenant entitled
"Change of Control” and the circumstances and relevant facts regarding such Change of Control; (ii)
the purchase price and the purchase date, which will be no earlier than 30 days nor later than 60
days from the date of such notice (the “Change of Control Payment Date”); (iii) that all
Notes properly tendered pursuant to such Change of Control Offer will be accepted for payment by
the Issuer, that any Note not properly tendered will remain outstanding and continue to accrue
interest, and that unless the Issuer defaults in the payment of the Change of Control Payment, all
Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue interest on
the Change of Control Payment Date; and (iv) the instructions, as determined by the Issuer,
consistent with this Section 4.09, that a Holder must follow in connection with the Change of
Control Offer.

          (b) The Issuer shall comply, to the extent applicable, with the requirements of Rule 14(e) of
the Exchange Act and any other securities laws or regulations in connection with the repurchase of
Notes pursuant to this Section 4.09. To the extent that the provisions of any securities laws or
regulations conflict with the provisions of this Section 4.09, the Issuer shall comply with the
applicable securities laws and regulations and shall not be deemed to have breached its obligations
described under this Section 4.09 by virtue of its compliance with such securities laws or
regulations.

          (c) On the Change of Control Payment Date, the Issuer shall, to the extent permitted by law,
(i) accept for payment all Notes or portions thereof properly tendered pursuant to the Change of
Control Offer, (ii) deposit with the Paying Agent an amount equal to the aggregate Change of
Control Payment in respect of all Notes or portions thereof so tendered and (iii) deliver, or cause
to be delivered, to the Trustee for cancelation the Notes so accepted together with an Officers’
Certificate to the Trustee stating that such Notes or portions thereof have been tendered to and
purchased by the Issuer.

          (d) The Issuer shall not be required to make a Change of Control Offer following a Change of
Control if a third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Indenture applicable to a Change
of Control Offer made by the Issuer and purchases all Notes validly tendered and not withdrawn
under such Change of Control Offer.
Notwithstanding anything to the contrary herein, a Change of Control Offer may be made in advance
of a Change of Control, conditional upon completion of the transaction constituting such Change of
Control, if a definitive agreement is in place for the Change of Control at the time of making of
the Change of Control Offer.

          SECTION 4.10. Offer to Purchase with Excess Cash Flow. (a) The Issuer shall be
required within 105 days after the end of each twelve-month period ended December 31 beginning
with the twelve-month period ended December 31, 2011, to the extent of 50% of the Excess Cash Flow
for the twelve-month period then ended (the “Excess Cash Flow Offer Amount”), to make an
offer (an “Excess Cash Flow Offer”) to

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each Holder of Notes to purchase such Holder’s Notes on a pro rata basis, in whole or
in part, at a price in cash (the “Excess Cash Flow Payment”) equal to 101% of
the principal amount thereof plus accrued and unpaid interest to the date of purchase;
provided, however, that in the case of the twelve-month period ended December 31,
·2011 only, for purposes of determining the Excess Cash Flow Offer Amount for such twelve-month
period, 50% of the Excess Cash Flow for the three-month period ended December 31, 2010 shall be
added to the amount that would otherwise be the Excess Cash Flow Offer Amount for the twelve-month
period ended December 31, 2011; provided, further, that the Issuer shall not be
required to make an Excess Cash Flow Offer in accordance with this Section 4.10 unless the Excess
Cash Flow Offer Amount exceeds $5.0 million (with any lesser amount being carried forward and
added to the Excess Cash Flow Amount for purposes of determining whether the $5.0 million
threshold has been met for any future Excess Cash Flow Offer). Upon completion of each Excess Cash
Flow Offer, the Excess Cash Flow Offer Amount shall be reset at zero.

          (b) The Issuer shall send notice of each Excess Cash Flow Offer, with a copy to the Trustee,
to each Holder of Notes by first-class mail to the address of such Holder appearing in the security
register or otherwise in accordance with the procedures of DTC, stating: (i) that an Excess Cash
Flow Offer is being made pursuant to the covenant entitled “Offer to Purchase with Excess Cash
Flow”; (ii) the purchase price and the purchase date, which shall be (x) no earlier than 30 days
nor later than 60 days from the date of such notice and (y) no later than 105 after the end of the
applicable twelve-month period ended December 31 (the “Excess Cash Flow Payment Date”); and
(iii) the instructions, as determined by the Issuer, consistent with this Section 4.10; that a
Holder must follow in connection with the Excess Cash Flow Offer.

          (c) If the aggregate Excess Cash Flow Payment in respect of all Notes or portions thereof so
tendered exceeds the Excess Cash Flow Offer Amount allotted to its purchase, the Issuer shall
select the Notes to be purchased on a pro rata basis but in round denominations of $2,000 principal
amount or integral multiples of $1,000 in excess thereof. On the Excess Cash Flow Payment Date, the
Issuer shall, to the extent permitted by law, (i) accept for payment all Notes or portions thereof
properly tendered pursuant to the Excess Cash Flow Offer (subject to selection and proration as
contemplated by the preceding sentence), (ii) deposit with the Paying Agent an amount equal to the
aggregate Excess Cash Flow Payment in respect of all Notes or portions thereof so tendered (but
which amount shall not exceed the Excess Cash Flow Offer Amount) and (iii) deliver, or cause to be
delivered, to the Trustee for cancelation the Notes so accepted together with an Officers’
Certificate to the Trustee stating that such Notes or portions thereof have been tendered to and
purchased by the Issuer. Upon completion of an Excess Cash Flow Offer, any remaining Excess Cash
Flow Offer Amount may be applied by the Company for any purpose otherwise permitted by this
Indenture.

          (d) The Issuer shall comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection with the repurchase
of Notes pursuant to this Section 4.10. To the extent that the provisions of any securities laws or
regulations conflict with provisions

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of this Section 4.10, the Issuer shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under this Section 4.10 by
virtue of its compliance with such securities laws or regulations.

          SECTION 4.11. Offer to Purchase with Proceeds of Certain Equity Offerings. (a) The
Issuer shall be required within 30 days of the closing of any public offering of equity securities
of the Issuer, any Guarantor or any direct or indirect parent entity of the Issuer, to the extent
of 25% of the Net Cash Proceeds of such public offering received by the Issuer, such Guarantor or
any such parent entity or by Stephen J.
Cloobeck or David F. Palmer, their estates, descendants and legal representatives and any
Person that they control (the “Public Offering Offer Amount”), to make an offer
(a “Public Offering Offer”) to each Holder of Notes to purchase such Holder’s Notes on a
pro rata basis, in whole or in part, at a price in cash (the “Public Offering Offer
Payment”) equal to the price set forth below for any such public offering consummated during
the applicable period set forth below, plus accrued and unpaid interest to the date of purchase:

	 	 	 	 	 
	Date of Consummation of Public Offering	 	Percentage
	Prior to August 15, 2014
	 	 	112.000	%
	 
	 	 	 	 
	From August 15, 2014 to August 14, 2015
	 	 	106.000	%
	 
	 	 	 	 
	From August 15, 2015 to August 14, 2016
	 	 	103.000	%
	 
	 	 	 	 
	August 15, 2016 and thereafter
	 	 	100.000	%

          (b) The Issuer shall send notice of each Public Offering Offer, with a copy to the Trustee, to
each Holder of Notes by first-class mail to the address of such Holder appearing in the security
register or otherwise in accordance with the procedures of DTC, stating: (i) that a Public Offering
Offer is being made pursuant to the covenant entitled “Offer to Purchase with Proceeds of Certain
Equity Offerings”; (ii) the purchase price and the purchase date, which shall be no later than 30
after the closing of the related public offering (the “Public Offering Offer Payment
Date”); and (iii) the instructions, as determined by the Issuer, consistent with
this Section 4.11, that a Holder must follow in connection with the Public Offering Offer. Such
notice may be given prior to the completion of the related public offering, and such notice may, at
the Issuer’s discretion, be subject to one or more conditions precedent, including completion of
the related public offering.

          (c) If the aggregate Public Offering Offer Payment in respect of all Notes or portions thereof
so tendered exceeds the Public Offering Offer Amount allotted to its purchase, the Issuer shall
select the Notes to be purchased on a pro rata basis but in round
denominations of $2,000 principal
amount or integral multiples of $1,000 in excess thereof. On the Public Offering Offer Payment
Date, the Issuer shall, to the extent

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permitted by law, (i) accept for payment all Notes or portions thereof properly
tendered pursuant to the Public Offering Offer (subject to selection and proration as contemplated
by the preceding sentence), (ii) deposit with the Paying Agent an amount equal to the aggregate
Public Offering Offer Payment in respect of all Notes or portions thereof so tendered (but which
amount shall not exceed the Public Offering Offer Amount) and (iii) deliver, or cause to be
delivered, to the Trustee for cancelation the Notes so accepted together with an Officers’
Certificate to the Trustee stating that such Notes or portions thereof have been tendered to and
purchased by the Issuer.

          (d) The Issuer shall comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection with the repurchase
of Notes pursuant to this Section 4.11. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 4.11, the Issuer shall comply with the
applicable securities laws and regulations and shall not be deemed to have breached its obligations
under this Section 4.11 by virtue of its compliance with such securities laws or regulations.

          SECTION 4.12. Limitation on Liens. The Company shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, create, incur, assume or otherwise cause or
suffer to exist or become effective any Lien of any kind upon any of their assets, now owned or
hereafter acquired, other than:

     (i) in the case of any asset that does not constitute Collateral, Permitted
Liens; provided, however, that any Lien on such asset shall be
permitted notwithstanding that it is not a Permitted Lien if all payments due
under this Indenture and the Notes are secured on an equal and ratable basis with
the obligations so secured until such time as such obligations are no longer
secured by a Lien; and

     (ii) in the case of any asset that constitutes Collateral, Permitted
Collateral Liens.

          In the case of the proviso in clause (i) of this Section 4.12, if the obligations so
secured are expressly subordinated by their terms to the Notes, the Lien securing such
obligations shall also be so subordinated by its terms at least to the same extent.

          SECTION 4.13. Additional Guarantors. If any of the Company’s Restricted
Subsidiaries (other than the Issuer) that is not a Guarantor issues a Guarantee of, or grants a
security interest in any of its assets to secure, any Indebtedness of the Company or any other
Restricted Subsidiary, then the Company shall cause such Restricted Subsidiary to:

     (i) execute and deliver a supplemental indenture providing for such Restricted
Subsidiary’s Notes Guarantee on the terms set forth in Article X and execute and
deliver such documentation mutatis mutandis with respect to collateral
as shall be necessary to provide for Liens on such

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Restricted Subsidiary’s assets constituting Collateral to secure such Notes
Guarantee on the terms set forth in the Security Documents and Article X; and

     (ii) deliver to the Trustee an opinion of counsel that such Notes Guarantee
has been duly authorized, executed and delivered by such Restricted Subsidiary
and constitutes a legal, valid, binding and enforceable obligation of such
Restricted Subsidiary, in each case subject to customary qualifications.

          Thereafter, such Restricted Subsidiary shall be a Guarantor for all purposes of this Indenture
until released from its Notes Guarantee in accordance with this Indenture.

          The foregoing shall not require a Special Purpose Subsidiary that only has Nonrecourse
Indebtedness outstanding to guarantee the Notes.

          SECTION 4.14. Impairment of Security Interest. (a) The Company shall not, and shall
not permit any Restricted Subsidiary to, take, or knowingly omit to take, any action, which action
or omission would have the effect of causing a Lien to be created on any property or assets of the
type that would constitute Collateral for the benefit of any Person (other than the Collateral
Agent) unless a Lien exists or is created in favor of the Collateral Agent for the benefit of the
Holders of the Notes with respect to such property or assets. Such Lien in favor of the Collateral
Agent shall at all times be in accordance with any applicable provisions of this Indenture and the
Security Documents.

          (b) Notwithstanding Section 4.14(a),

     (i) the Capital Stock and other securities of any Subsidiary of the Company
that are owned by the Company or any Guarantor and that otherwise constitute
Collateral shall constitute Collateral for the benefit of the Notes Secured
Creditors only to the extent that such Capital Stock and other securities can
secure the Notes without Rule 3-16 of Regulation S-X under the Securities Act (or
any other law, rule or regulation) (“Rule 3-16”) requiring separate
financial statements of such Subsidiary to be filed with the SEC (or any other
governmental agency);

     (ii) in the event that Rule 3-16 requires or is amended, modified or
interpreted by the SEC to require (or is replaced with another rule or regulation,
or any other law, rule or regulation is adopted, which would require) the filing
with the SEC (or any other governmental agency) of separate financial statements
of any Subsidiary of the Company due to the fact that such Subsidiary’s Capital
Stock and other securities secure the Notes, the performance of the Notes
Obligations or any Notes Guarantee, then the Capital Stock and other securities of
such Subsidiary shall automatically be deemed not to be part of the Collateral for
the benefit of the Notes Secured Creditors, but only to the extent necessary to
not be

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subject to such requirement (and, in such event, the Security Documents may be
amended or modified, without the consent of any Holder of the Notes, to the extent
necessary to release the first-priority security interests in the shares of
Capital Stock and other securities that are so deemed to no longer constitute part
of the Collateral); and

     (iii) in the event that Rule 3-16 is amended, modified or interpreted by the
SEC to permit (or is replaced with another rule or regulation, or any other law,
rule or regulation is adopted, which would permit) such Subsidiary’s Capital Stock
and other securities to secure the Notes in excess of the amount then pledged
without the filing with the SEC (or any other governmental agency) of separate
financial statements of such Subsidiary, then the Capital Stock and other
securities of such Subsidiary shall automatically be deemed to be a part of the
Collateral for the benefit of the Notes Secured Creditors but only to the extent
necessary to not be subject to any such financial statement requirement (and, in
such event, the Security Documents may be amended or modified, without the consent
of any Holder of the Notes, to the extent necessary to subject to the Liens under
the Security Documents such additional Capital Stock and other securities).

          (c) The Company shall not, and shall not permit any Restricted Subsidiary to, take, or
knowingly omit to take, any action that would have the result of materially impairing the security
interest with respect to the Collateral (it being understood that Permitted Securitizations,
Restricted Payments permitted under Section 4.04, Asset Sales permitted under Section 4.06, other
dispositions of assets in the ordinary course of business and the incurrence of Permitted
Collateral Liens will be deemed not to materially impair the security with respect to the
Collateral) for the benefit of the Collateral Agent and the Holders of the Notes, and the Company
shall not, and shall not permit any Restricted Subsidiary to, grant to any person other than the
Collateral Agent, any interest whatsoever in any of the Collateral, except that the Company and any
Restricted Subsidiary may incur Permitted Collateral Liens, and the Collateral and the Liens
thereon may be discharged and released in accordance with this Indenture, the Security Documents
and any applicable Intercreditor Agreements.

          SECTION 4.15. Sale/Leaseback Transactions. The Company will not, and will not
permit any Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with respect to
any property unless:

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     (i) the Company or such Restricted Subsidiary would be entitled to (A) incur
Indebtedness in an amount equal to the Attributable Debt with respect to such
Sale/Leaseback Transaction pursuant to Section 4.03 and (B) create a Lien on such
property securing such Attributable Debt without equally and ratably securing the
Notes pursuant to Section 4.12;

     (ii) the net proceeds received by the Company or any Restricted Subsidiary
in connection with such Sale/Leaseback Transaction are at least equal to the
Fair Market Value of such property; and

     (iii) the Company applies the proceeds of such transaction in
compliance with Section 4.06.

          SECTION 4.16. Further Instruments and Acts. Upon request of the Trustee, the Issuer
shall execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purpose of this Indenture.

ARTICLE V

Successors

          SECTION 5.01. Mergers or Asset Transfers. (a) Neither the Company, Intermediate
Holdco nor the Issuer shall consolidate or merge with or into (whether or not the Company,
Intermediate Holdco or the Issuer is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or assets in one or more
related transactions to, another Person unless:

     (i) the Company, Intermediate Holdco or the Issuer, as the case may be, is
the surviving entity (which in the case of the Issuer must be a corporation) or
the Person formed by or surviving any such consolidation or merger (if other than
the Company, Intermediate Holdco or the Issuer, as the case may be) or to which
such sale, assignment, transfer, lease, conveyance or other disposition shall
have been made is organized or existing under the laws of the United States, any
state thereof or the District of Columbia;

     (ii) the Person formed by or surviving any such consolidation or merger (if
other than the Company, Intermediate Holdco or the Issuer, as the case may be) or
the Person to which such sale, assignment, transfer, lease, conveyance or other
disposition shall have been made assumes all the obligations of the Company,
Intermediate Holdco or the Issuer, as the case may be, under this Indenture and
with respect to the Notes or its Notes Guarantee, as the case may be, pursuant to
a supplemental indenture in a form reasonably satisfactory to the Trustee;

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     (iii) except in the case of a merger or consolidation of the
Company, Intermediate Holdco or the Issuer with or into a Wholly Owned
Restricted Subsidiary of the Company, immediately before and after such
transaction no Default has occurred and is continuing; and

     (iv) except in the case of a merger or consolidation of the
Company, Intermediate Holdco or the Issuer with or into a Wholly Owned
Restricted Subsidiary of the Company, the Person formed by or surviving any such
consolidation or merger (if other than the Company, Intermediate Holdco or the
Issuer, as the case may be), or to which such sale, assignment, transfer, lease,
conveyance or other disposition shall have been made shall, at the time of such
transaction and after giving pro forma effect thereto as if such transaction had
occurred at the end of the applicable fiscal quarter, either (A) be permitted to
incur at least $1.00 of additional Ratio Indebtedness pursuant to Section 4.03(a)
or (B) have a Fixed Charge Coverage Ratio no less than that of the Company at such
time without giving such pro forma effect thereto.

Upon the consummation of any transaction effected in accordance with this Section 5.01(a), if
the Company, Intermediate Holdco or the Issuer, as the case may be, is not the continuing Person,
the resulting, surviving or transferee Person shall succeed to, and be substituted
for, and may exercise every right and power of, the Company, Intermediate Holdco or the Issuer, as
applicable, under this Indenture and with respect to the Notes or its Notes Guarantee, as the case
may be, with the same effect as if such successor Person had been named as the Company,
Intermediate Holdco or the Issuer, as applicable, in this Indenture. Upon such substitution the
Company, Intermediate Holdco or the Issuer, as applicable, except in the case of a lease, shall be
released from its obligations under this Indenture, and with respect to the Notes or its Notes
Guarantee, as the case may be, and the Security Documents.

          (b) Each Subsidiary Guarantor (other than any Guarantor whose Notes Guarantee is to be
released in accordance with Section 10.06) shall not, and the Company shall not cause or permit any
such Subsidiary Guarantor to, consolidate with or merge with or into any Person other than the
Company, the Issuer or another Subsidiary Guarantor unless:

     (i) the Person formed by or surviving any such consolidation or merger or to
which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made is organized and existing under the laws of the United
States, any State thereof or the District of Columbia;

     (ii) the Person formed by or surviving any such consolidation or merger or
to which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made assumes all of the obligations of the applicable Guarantor
under its Notes Guarantee;

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     (iii) immediately before and after giving effect to such transaction, no
Default has occurred and is continuing; and

     (iv) except in the case of a merger or consolidation of a Guarantor with or
into a Wholly Owned Restricted Subsidiary of the Company, immediately after giving
effect to such transaction and the use of any net proceeds therefrom on a pro
forma basis, the Company could satisfy Section 5.01(a)(iv).

          (c) The following additional conditions shall apply to each transaction set forth in Sections
5.01(a) and 5.01(b):

     (i) the Company, Intermediate Holdco, the Issuer, the Subsidiary Guarantor or
the relevant surviving entity, as applicable, shall cause such amendments or other
instruments to be filed and recorded in such jurisdictions as may be required by
applicable law to preserve and protect the Lien of the Security Documents on the
Collateral owned by or transferred to such Person, together with such financing
statements as may be required to perfect any security interests in such Collateral
which may be perfected by the filing of a financing statement under the Uniform
Commercial Code of the relevant states;

     (ii) the Collateral owned by or transferred to the Company, Intermediate
Holdco, the Issuer, the Subsidiary Guarantor or the relevant surviving entity,
as applicable, shall

     (1) continue to constitute Collateral under the Security
Documents and this Indenture;

     (2) be subject to the Lien in favor of the Collateral Agent (to
the extent that such Lien is not prohibited by any related Acquired
Indebtedness that is secured by such assets); and

     (3) not be subject to any Lien other than Liens permitted by the
Security Documents and this Indenture;

     (iii) the assets of the Person which is merged or consolidated with or into
the relevant surviving entity, to the extent that they are assets of the types
which would constitute Collateral under the Security Documents and which would be
required to be pledged thereunder, shall be treated as after-acquired property and
such surviving entity shall take such action as may be reasonably necessary to
cause such assets to be made subject to the Lien of the Security Documents in the
manner and to the extent required in the Security Documents and this Indenture;
and

     (iv) the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such transaction

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and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture comply with the applicable provisions of
this Indenture and, with respect to the Officers’ Certificate only, that all
conditions precedent in this Indenture relating to such transaction have been
satisfied and, with respect to the Opinion of Counsel only, that such supplemental
indenture and Security Documents are legal, valid, binding and enforceable, subject
to customary qualifications;

provided, however, that clauses (iii) and (iv) of each of Sections 5.01(a) and
5.01(b) shall not be applicable to the Company or a Restricted Subsidiary merging with an Affiliate
of the Company solely for the purpose of reincorporating the Company or such Restricted Subsidiary
in another permitted jurisdiction.

ARTICLE VI

Defaults and Remedies

          SECTION 6.01. Events of Default. (a) Each of the following constitutes an “Event
of Default”:

     (i) default in the payment when due of interest on the Notes, which default
continues for 30 consecutive days;

     (ii) default in payment of the principal of or premium, if any, on the
Notes when due, at Stated Maturity, upon optional redemption, upon required
repurchase or otherwise;

     (iii) default by the Company, the Issuer or Intermediate Holdco in the
performance of its obligations under Section 5.01(a);

     (iv) the Company or the Issuer defaults in the performance of or breaches any
other covenant or agreement of the Company or the Issuer in this Indenture, the
Security Documents or any other collateral agreement or under the Notes (other
than a default specified in clause (i), (ii) or (iii) above), and such default or
breach continues for a period of 60 consecutive days after written notice by the
Trustee to the Company or by the holders of 25.0% or more in aggregate principal
amount of the Notes to the Company (with a copy to the Trustee);

     (v) (A) failure by the Company or any Restricted Subsidiary (other than a
Special Purpose Subsidiary with respect to Nonrecourse Indebtedness) to make a
principal payment on any Indebtedness at or prior to the expiration of the
applicable grace period after the final (but not any interim) fixed maturity of
such Indebtedness, where the amount of such unpaid principal exceeds $10,000,000,
or (B) acceleration of Indebtedness of the Company or any Restricted Subsidiary
(other than Nonrecourse Indebtedness of a Special Purpose Subsidiary) because of a
default

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thereunder, where the total amount of such Indebtedness accelerated exceeds
$10,000,000;

     (vi) one or more judgments, orders, decrees or arbitration awards (other than
those existing on the Issue Date and disclosed in the Offering Circular) are
entered against the Company or any Restricted Subsidiaries involving in the
aggregate a liability (to the extent not paid when due or covered by insurance) of
$10,000,000 or more and all such judgments, orders, decrees or arbitration awards
have not been paid and satisfied, vacated, discharged, stayed or fully bonded
pending appeal within 90 days from the entry thereof;

     (vii) except as permitted by this Indenture, any Notes Guarantee of a
Significant Subsidiary of the Company, or the Notes Guarantees of a group of
Subsidiary Guarantors that, taken together, would constitute a Significant
Subsidiary of the Company, is held in a judicial proceeding to be unenforceable or
invalid or ceases for any reason to be in full force and effect or any Guarantor,
or any Person acting on behalf of any Guarantor, denies or disaffirms its
obligations under its Notes Guarantee;

     (viii) the Company, the Issuer, Intermediate Holdco or any Significant
Subsidiary or any group of Subsidiaries of the Company that, taken together,
would constitute a Significant Subsidiary of the Company pursuant to or within
the meaning of any Bankruptcy Law:

     (A) commences a voluntary case;

     (B) consents to the entry of an order for relief against it in an
involuntary case;

     (C) consents to the appointment of a Custodian of it or for any
substantial part of its property and assets; or

     (D) makes a general assignment for the benefit of its
creditors;

or takes any comparable action under any foreign laws relating to
insolvency;

     (ix) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:

     (A) is for relief against the Company, the Issuer,
Intermediate Holdco or any Significant Subsidiary or any group of
Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary of the Company in an involuntary case;

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     (B) appoints a Custodian of the Company, the Issuer, Intermediate
Holdco or any Significant Subsidiary or any group of Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary of
the Company or for any substantial part of the property and assets of the
Company, the Issuer, Intermediate Holdco or any Significant Subsidiary or
any group of Subsidiaries of the Company that, taken together, would
constitute a Significant Subsidiary of the Company; or

     (C) orders the winding up or liquidation of the Company, the Issuer
or any Significant Subsidiary or any group of Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary of the
Company;

and the order or decree remains unstayed and in effect for 60 consecutive
days or any similar relief is granted under any foreign laws and the order or
decree remains unstayed and in effect for 60 consecutive days; and

     (x) (1) default by the Company, the Issuer, Intermediate Holdco or any
Subsidiary Guarantor in the performance of the Security Documents which adversely
affects the enforceability, validity, perfection or priority of the Collateral
Agent’s Lien on the Collateral in any material respect, (2) repudiation or
disaffirmation by the Company, the Issuer, Intermediate Holdco or any Subsidiary
Guarantor of its obligations under the Security Documents or (3) the determination
in a judicial proceeding that the Security Documents are unenforceable or invalid
against the Company, the Issuer, Intermediate Holdco or any Subsidiary Guarantor
for any reason except to the extent any such unenforceability or invalidity is
caused by the failure of the Collateral Agent to make filings, renewals and
continuations (or other equivalent filings) which the Company has indicated in the
perfection certificate delivered to the Collateral Agent are required to be made or
the failure of the Collateral Agent to maintain possession of certificates actually
delivered to it representing securities pledged under the Security Documents.

          (b) The foregoing will constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

          (c) The term “Bankruptcy Law” means Title 11 of the United States Code, or any
similar Federal or state law for the relief of debtors. The term
“Custodian” means any receiver,
trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

          SECTION 6.02. Acceleration. If any Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25.0% in principal amount of the then

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outstanding Notes may declare all the Notes to be due and payable immediately.
Notwithstanding the foregoing, in the case of an Event of Default arising under clauses (viii) and
(ix) of Section 6.01(a), all outstanding Notes shall become due and payable without further action
or notice. Holders of the Notes may not enforce this Indenture or the Notes except as provided in
this Indenture. Subject to certain limitations, Holders of a majority in principal amount of the
then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee
may withhold from Holders of the Notes notice of any continuing Default (except a Default relating
to the payment of principal, premium, if any, or interest) if it determines that withholding
notice is in their interest.

          In the event of a declaration of acceleration because an Event of Default set forth in clause
(v) of Section 6.01(a) has occurred and is continuing, such declaration of acceleration shall be
automatically rescinded and annulled if the event of default triggering such Event of Default
pursuant to such clause (v) shall be remedied or cured or waived by the holders of the relevant
Indebtedness within 30 days after the declaration of acceleration with respect thereto.

          SECTION 6.03. Waiver of Past Defaults. The Holders of a majority in aggregate
principal amount of the Notes then outstanding by written notice to the Trustee may on behalf of
the Holders of all of the Notes waive any existing Default and its consequences under this
Indenture except (i) a continuing Default in the payment of interest or premium, if
any, on or the principal of, the Notes or (ii) a Default in respect of a provision that under
Section 9.02(b) cannot be amended or waived without consent of the Holders of at least 662/3% in
aggregate principal amount of Notes then outstanding.

          SECTION 6.04. Other Remedies. If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal of or premium, if any,
or interest on the Notes or to enforce the performance of any provision of the Notes or this
Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of
any other remedy. All available remedies are cumulative.

          SECTION 6.05. Compliance Certificate. (a) The Company shall deliver to the Trustee
within 60 days after the end of each fiscal year of the Company an Officers’ Certificate (for which
one of the certifying Officers shall be the Company’s principal executive officer, principal
financial officer or principal accounting officer) stating that in the course of the performance by
the signers of their duties as Officers of the Company they would normally have knowledge of any
Default and whether or not the signers know of any Default that occurred during such period. If
they do, the certificate shall describe the Default, its status and what action the Company is
taking or proposes to take with respect thereto.

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          (b) The Company shall deliver to the Trustee, within 30 days after the occurrence
thereof, written notice in the form of an Officers’ Certificate of any Event of Default under
clause (iii), (iv), (v), (vi), (vii), (viii), (ix) or (x) of Section 6.01(a) and any event which
with the giving of notice or the lapse of time would become an Event of Default under clause (iv)
of Section 6.01(a), its status and what action the Issuer is taking or proposes to take with
respect thereto.

          SECTION 6.06. Control by Majority. The Holders of a majority in principal amount of
the Notes may direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 7.01, that the Trustee determines is unduly prejudicial to the rights of other
Holders or would involve the Trustee in personal liability; provided, however,
that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent
with such direction. Prior to taking any action hereunder, the Trustee shall be entitled to
indemnification satisfactory to it in its sole discretion against all losses and expenses caused
by taking or not taking such action.

          SECTION 6.07. Limitation on Suits. Except to enforce the right to receive
payment of principal, premium, if any, or interest when due, no Holder may pursue any remedy
with respect to this Indenture or the Notes unless:

     (a) the Holder gives to the Trustee written notice stating that an Event of Default
is continuing;

     (b) the Holders of at least 25.0% in principal amount of the Notes make a written
request to the Trustee to pursue the remedy;

     (c) such Holder or Holders offer to the Trustee security or indemnity
satisfactory to the Trustee against any loss, liability or expense;

     (d) the Trustee does not comply with the request within 60 days after receipt of
the request and the offer of security or indemnity; and

     (e) the Holders of a majority in principal amount of the Notes do not give the
Trustee a direction inconsistent with the request during such 60-day period.

          A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder. In the event that Definitive Notes are not issued to
any owner of a beneficial interest in a Global Note at a time at which such beneficial owner has a
right to receive such Definitive Notes pursuant to this Indenture, the Issuer expressly agrees and
acknowledges that (1) such beneficial owner shall have standing to pursue a remedy pursuant to
this Indenture to compel the issuance of such Definitive Notes to such beneficial owner and to
compel the registration of such Definitive Notes in the name of such beneficial owner in the
register maintained

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by the Registrar with respect to the Notes and (2) such beneficial owner shall be entitled,
pending such issuance and registration, to sue for payment (which payment shall only be made
following such issuance and registration) of the monetary obligation to be represented by such
Definitive Notes. The Issuer agrees that specific performance is an appropriate form for the
remedy referenced in clause (1) of the immediately preceding sentence and shall not
object to such form of such remedy.

          SECTION 6.08. Rights of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of principal of or premium,
if any, or interest on the Notes held by such Holder, on or after the respective due dates
expressed in the Notes, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such Holder.

          SECTION 6.09. Collection Suit by Trustee. If an Event of Default specified in clause
(i) or (ii) of Section 6.01(a) occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Issuer for the whole amount then due and
owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided
for in Section 7.07.

          SECTION 6.10. Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims
of the Trustee and the Holders allowed in any judicial proceedings relative to the Issuer, the
Company or any Guarantor, their respective creditors or their respective property and,
unless prohibited by law or applicable regulations, may vote on behalf of the Holders in any
election of a trustee in bankruptcy or other Person performing similar functions, and any
Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to
the Trustee and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other
amounts due to the Trustee under Section 7.07.

          SECTION 6.11. Priorities. If the Trustee collects any money or property pursuant to
this Article VI, it shall payout the money or property in the following order:

     FIRST: to the Trustee for amounts due under Section 7.07 and to the Collateral
Agent for amounts due under the Security Agreement;

     SECOND: to the Holders for amounts due and unpaid on the Notes for principal,
premium, if any, and interest, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Notes for principal, premium, if any, and
interest, respectively; and

     THIRD: to the Issuer or, to the extent the Trustee collects any amount for any
Guarantor, to such Guarantor.

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          The Trustee may fix a record date and payment date for any payment to the Holders pursuant
to this Section 6.11. At least 15 days before such record date, the Trustee shall mail to each
Holder and the Issuer a notice that states the record date, the payment date and amount to be
paid.

          SECTION 6.12. Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.08 or a suit by Holders of more than 10.0% in aggregate principal amount of the Notes.

          SECTION 6.13. Waiver of Stay or Extension Laws. The Issuer (to the extent it may
lawfully do so) shall not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this Indenture; and the
Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law, and shall not hinder, delay or impede the execution of any power herein granted to
the Trustee, but shall suffer and permit the execution of every such power as though no such law
had been enacted.

ARTICLE VII

Trustee

          SECTION 7.01. Duties of Trustee. (a) If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use
the same degree of care and skill in their exercise as a prudent person would exercise or use under
the circumstances in the conduct his or her own affairs.

          (b) Except during the continuance of an Event of Default:

     (i) the Trustee undertakes to perform such duties and only such duties as
are specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

     (ii) in the absence of bad faith on its part, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture. However, the Trustee shall
examine the certificates and opinions to determine whether or not they conform
to the requirements of this

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Indenture (but shall have no obligation to verify any calculations or other
matters stated therein).

          (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

     (i) this paragraph does not limit the effect of paragraph (b) of this
Section;

     (ii) the Trustee shall not be liable for any error of judgment made in good
faith by a Trust Officer unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and

     (iii) the Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it pursuant
to Section 6.06.

          (d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section.

          (e) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Issuer.

          (f) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

          (g) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity satisfactory to it in its reasonable discretion
against such risk or liability is not reasonably assured to it.

          (h) Every provision of this Indenture relating to the conduct or affecting the liability of
or affording protection to the Trustee shall be subject to the provisions of this Section and to
the provisions of the TIA.

          SECTION 7.02. Rights of Trustee. (a) The Trustee may rely on any document believed by
it to be genuine and to have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document.

          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on the Officers’ Certificate or Opinion of Counsel.

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          (c) The Trustee may act through agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers;
provided, however, that the
Trustee’s conduct does not constitute willful misconduct or negligence.

          (e) The Trustee may consult with counsel, and the advice or opinion of counsel with respect
to legal matters relating to this Indenture and the Notes shall be full and complete authorization
and protection from liability in respect to any action taken, omitted or suffered by it hereunder
in good faith and in accordance with the advice or opinion of such counsel.

          (f) The Trustee shall be under no obligation to exercise any of its rights or powers under
this Indenture at the request of any Holder of Notes, unless such Holder shall have offered to the
Trustee security and indemnity satisfactory to it against any loss, liability or expense.

          (g) The Trustee shall not be deemed to have knowledge of any Default or Event of Default
except (i) during any period it is serving as Registrar and Paying Agent for the Notes, any Event
of Default occurring pursuant to Sections 6.01(a)(i) and 6.01(a)(ii), or (ii) any Default or Event
of Default of which a Trust Officer shall have (x) received written notification at the office of
the Trustee specified in Section 12.02 and such notice references the Notes and this Indenture or
(y) obtained “actual knowledge.”
“Actual knowledge” shall mean the actual fact or statement
of knowing by a Trust Officer without independent investigation with respect thereto.

          (h) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood of such loss
or damage and regardless of the form of action.

          (i) The Trustee may request that the Issuer deliver a certificate setting forth the names
of individuals and/or titles of officers authorized at such time to take specified actions
pursuant to this Indenture.

          (j) The Trustee shall have no duty to monitor or investigate the Issuer’s compliance with or
the breach of any representation, warranty or covenant made in this Indenture.

          (k) Delivery of reports, information and documents to the Trustee under Section 4.02 of this
Indenture is for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely conclusively on Officer’s Certificates,
including those contemplated by Section 6.05). The Trustee is under no duty to examine such
reports, information or documents to

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ensure compliance with the provision of this Indenture or to ascertain the correctness or
otherwise of the information or the statements contained therein.

          SECTION 7.03. Individual Rights of Trustee. (a) The Trustee in its individual or
any other capacity may become the owner or pledgee of Notes and may become a creditor of, or
otherwise deal with, the Issuer or its Affiliates with the same rights it would have if it were
not Trustee. The Paying Agent or Registrar may do the same with like rights. However, the
Trustee must comply with Sections 7.10 and 7.11.

          (b) Notwithstanding Section 7.03(a), if the Trustee acquires any conflicting interest as
described in the TIA, it must eliminate such conflict within 90 days; if this Indenture has been
qualified under the TIA, apply to the SEC for permission to continue as trustee under this
Indenture; or resign.

          SECTION 7.04. Trustee’s Disclaimer. The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall
not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be
responsible for any statement of the Issuer in this Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee’s certificate of
authentication.

          SECTION 7.05. Notice of Defaults. If a Default occurs, is continuing and is known to
the Trustee, the Trustee shall mail to each Holder notice of the Default within 90 days after it
occurs. Except in the case of a Default in the payment of principal of or premium, if any, or
interest on any Note, the Trustee may withhold the notice if and so long as a committee of its
Trust Officers in good faith determines that withholding the notice is not opposed to the interests
of the Holders.

          SECTION 7.06. Reports by Trustee to Holders. As promptly as practicable after each
February 1 beginning with the February 1 following the date of this Indenture, and in any event
prior to April 1 in each year, the Trustee shall mail to each Holder a brief report dated as of
February 1 that complies with TIA § 313(a). The Trustee also shall comply with TIA § 313(b).

          A copy of each report at the time of its mailing to Holders shall be filed with the SEC and
each stock exchange (if any) on which the Notes are listed. The Issuer agrees to notify promptly
the Trustee whenever the Notes become listed on any stock exchange and of any delisting thereof.

          SECTION 7.07. Compensation and Indemnity. The Issuer shall pay to the Trustee from
time to time reasonable compensation for its services. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer shall reimburse
the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and advances of the
Trustee’s agents, counsel, accountants and experts. The Issuer shall indemnify the Trustee and its
officers, directors, agents and

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employees or any predecessor Trustee against any and all loss, damages, claims,
liability or expense (including reasonable attorneys’ fees) incurred by it in connection with the
acceptance or administration of this trust and the performance of its
duties hereunder, including
the costs and expenses of defending itself against any claim (whether asserted by the Company or
any Holder or any other Person) or in connection with the exercise or performance of any of its
powers or duties hereunder or in connection with enforcing the provisions of this Section. The
Trustee shall notify the Issuer promptly of any claim for which it may seek indemnity. Failure by
the Trustee to so notify the Issuer shall not relieve the Issuer of its obligations hereunder. The
Issuer shall defend the claim and the Trustee may have separate counsel and the Issuer shall pay
the fees and expenses of such counsel. The Issuer need not reimburse any expense or indemnify
against any loss, liability or expense incurred by the Trustee through the Trustee’s own willful
misconduct or negligence .as determined by the final non-appealable judgment of a court of
competent jurisdiction.

          To secure the Issuer’s payment obligations in this Section, the Trustee shall have a lien
prior to the Notes on all money or property held or collected by the Trustee other than money
or property held in trust to pay principal of and premium, if any, or interest on particular
Notes.

          The Issuer’s payment obligations pursuant to this Section shall survive the discharge of this
Indenture and the resignation and removal of the Trustee. When the Trustee incurs expenses after
the occurrence of a Default specified in Section 6.01(a)(viii) or (ix) with respect to the Issuer, the expenses are intended
to constitute expenses of administration under the Bankruptcy Law.

          SECTION 7.08. Replacement of Trustee. The Trustee may resign at any time by so
notifying the Issuer. The Holders of a majority in principal amount of the Notes may remove the
Trustee by so notifying the Trustee and may appoint a successor Trustee. The Issuer shall remove
the Trustee if:

          (a) the Trustee fails to comply with Section 7.10;

          (b) the Trustee is adjudged bankrupt or insolvent;

          (c) a receiver or other public officer takes charge of the Trustee or its property; or

          (d) the Trustee otherwise becomes incapable of acting.

          If the Trustee resigns, is removed by the Issuer or by the Holders of a majority in principal
amount of the Notes and such Holders do not reasonably promptly appoint a successor Trustee, or if
a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred
to herein as the retiring Trustee), the Issuer shall promptly appoint a successor Trustee.

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          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuer. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to the
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.07.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of 10.0% in principal amount of the Notes may
petition any court of competent jurisdiction for the appointment of a successor Trustee.

          If the Trustee fails to comply with Section 7.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          Notwithstanding the replacement of the Trustee pursuant to this Section, the Issuer’s
obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

          SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Trustee.

          In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to the Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the full force which
it is anywhere in the Notes or in this Indenture provided that the certificate of the Trustee shall
have.

          SECTION 7.10. Eligibility; Disqualification. The Trustee shall at all times satisfy
the requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of condition. The
Trustee shall comply with TIA § 310(b); provided,
however, that there shall be
excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of the Issuer are
outstanding if the requirements for such exclusion set forth in TIA
§ 310(b)(1) are met.

          SECTION 7.11. Preferential Collection of Claims Against Issuer. The Trustee shall
comply with TIA § 311 (a), excluding any creditor relationship listed in TIA

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§
311(b). A Trustee who has resigned or been removed shall be subject
to TIA § 311(a) to the
extent indicated.

ARTICLE VIII

Discharge of Indenture; Defeasance

          SECTION 8.01. Satisfaction and Discharge. This Indenture shall be discharged and shall
cease to be of further effect (except as to surviving rights and immunities of the Trustee and
rights of registration or transfer or exchange of the Notes, as expressly provided for in this
Indenture) as to all outstanding Notes and Notes Guarantees when:

               (i) either:

     (1) all the Notes theretofore authenticated and delivered (except
lost, stolen or destroyed Notes that have been replaced or paid and Notes
for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Issuer and thereafter repaid to the
Issuer or discharged from such trust) have been delivered to the Trustee
for cancellation; or

     (2) all Notes not theretofore delivered to the Trustee for
cancellation (a) have become due and payable, (b) shall become due and
payable at their stated maturity within one year or (c) if redeemable at
the option of the Issuer, are to be called for redemption within one year
under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Issuer,
and the Issuer has irrevocably deposited or caused to be deposited with the
Trustee funds in an amount sufficient or Government Securities, the
principal of and interest on which shall be sufficient, or a combination
thereof sufficient, to pay and discharge the entire Indebtedness on the
Notes not theretofore delivered to the Trustee for cancellation, for
principal of, premium, if any, and interest on the Notes to the date of
deposit together with irrevocable instructions from the Issuer directing
the Trustee to apply such funds to the payment thereof at maturity or
redemption, as the case may be;

               (ii) the Issuer has paid all other sums payable under this Indenture by the
Issuer; and

               (iii) the Issuer has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel stating that all conditions precedent under this Indenture
relating to the satisfaction and discharge of this Indenture have been complied
with.

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          SECTION
8.02. Legal Defeasance and Covenant Defeasance. (a) Subject to Sections
8.02(b) and 8.03, the Issuer at any time may terminate (1) all its obligations under the Notes and
this Indenture (“Legal Defeasance”) or (2) its obligations under Sections 4.02, 4.03, 4.04,
4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15 and 6.05 and the operation of
Sections 6.01(a)(iv), 6.01(a)(v), 6.01(a)(vi), 6.01(a)(vii), 6.01(a)(viii), 6.01(a)(ix) and
6.01(a)(x) (but, in the case of Sections 6.01(a)(viii) and 6.01(a)(ix), with respect only to
Significant Subsidiaries or any group of Subsidiaries of the Company that, taken together, would
constitute a Significant Subsidiary) and the limitations contained in Section 5.01(a)(iv)
(“Covenant Defeasance”). The Issuer may exercise a Legal Defeasance notwithstanding its
prior exercise of Covenant Defeasance.

          If the Issuer exercises a Legal Defeasance, payment of the Securities may not be accelerated
because of an Event of Default. If the Issuer exercises a Covenant Defeasance, payment of the
Securities may not be accelerated because of an Event of Default specified in 6.01(a)(iv),
6.01(a)(v), 6.01(a)(vi), 6.01(a)(vii), 6.01(a)(viii), 6.01(a)(ix) or 6.01(a)(x) (but, in the case
of Sections 6.01(a)(viii) and 6.01(a)(ix), with respect only to Significant Subsidiaries or any
group of Subsidiaries or the Company that, taken together, would constitute a Significant
Subsidiary) or because of the failure of the Issuer to comply with Section 5.01(a)(iv). If the
Issuer exercises a Legal Defeasance or a Covenant Defeasance, each Guarantor, if any, shall be
simultaneously released from all its obligations with respect to its Notes Guarantee and the
Security Documents.

          Upon satisfaction of the conditions set forth herein and upon request of the Issuer, the
Trustee shall acknowledge in writing the discharge of those obligations that the Issuer terminates.

          (b) Notwithstanding Sections 8.01 and 8.02(a), the Issuer’s obligations in Sections 2.03,
2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 7.01, 7.02, 7.03, 7.07 and 7.08 and in this Article VIII shall
survive until the Notes have been paid in full. Thereafter, the Issuer’s obligations in Sections
7.07, 8.06 and 8.07 shall survive.

          SECTION 8.03. Conditions to Defeasance. In order to exercise either Legal Defeasance
or Covenant Defeasance:

     (i) the Issuer must irrevocably deposit with the Trustee, in trust, for the
benefit of the Holders of the Notes, cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, in such amounts as will be sufficient, in the
opinion of a nationally recognized firm of independent public accountants, to pay
the principal of, premium, if any, and interest due on the outstanding Notes on the
stated maturity date or on the applicable Redemption Date, as the case may be, and
the Company must specify whether the Notes are being defeased to maturity or to a
particular Redemption Date;

     (ii)
in the case of Legal Defeasance, the Issuer shall have delivered to the
Trustee an opinion of counsel in the United States reasonably

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acceptable to the Trustee confirming that, subject to customary assumptions and
exclusions, (1) the Issuer has received from, or there has been published by, the
Internal Revenue Service a ruling or (2) since the Issue Date, there has been a
change in the applicable U.S. Federal income tax law, in either case to the effect
that, and based thereon such opinion of counsel shall confirm that, the Holders
will not recognize income, gain or loss for U.S. Federal income tax purposes as a
result of such Legal Defeasance and will be subject to U.S. Federal income tax on
the same amounts, in the same manner and at the same times as would have been the
case if such Legal Defeasance had not occurred;

     (iii) in the case of Covenant Defeasance, the Issuer shall have delivered to
the Trustee an opinion of counsel in the United States reasonably acceptable to
the Trustee confirming that, subject to customary assumptions and exclusions, the
Holders will not recognize income, gain or loss for U.S. Federal income tax
purposes as a result of such Covenant Defeasance and will be subject to U.S.
Federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such Covenant Defeasance had not occurred;

     (iv) no Default shall have occurred and be continuing on the date of such
deposit (other than a Default resulting from the borrowing of funds to be applied
to such deposit);

     (v) such Legal Defeasance or Covenant Defeasance will not result in a breach
or violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

     (vi) the Issuer shall have delivered to the Trustee an Officers’ Certificate
stating that the deposit was not made by the Issuer with the intent of preferring
the Holders of Notes over the other creditors of the Issuer or the Guarantors with
the intent of defeating, hindering, delaying or defrauding creditors of the Issuer
or any Guarantor or others; and

     (vii) the Issuer shall have delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel (which opinion may be subject to customary assumptions
and exclusions), each stating that all conditions precedent provided for relating
to the Legal Defeasance or the Covenant Defeasance, as the case may be, have been
complied with.

          Before or after a deposit, the Company may make arrangements satisfactory to the
Trustee for the redemption of Notes at a future date in accordance with Article
III.

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          SECTION 8.04. Application of Trust Money. The Trustee shall hold in trust money or
Government Securities deposited with it pursuant to this Article VIII. It shall apply the deposited
money and the money from Government Securities through the Paying Agent and in accordance with this
Indenture to the payment of principal of and premium, if any, and interest on the Notes.

          SECTION 8.05. Repayment to Company. The Trustee and the Paying Agent shall promptly
turn over to the Issuer upon request any excess money or securities held by them at any time.

          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Issuer upon request any money held by them for the payment of principal, premium, if any, or
interest that remains unclaimed for two years, and, thereafter, Holders entitled to the money must
look to the Issuer for payment as general creditors.

          SECTION 8.06. Indemnity for Government Securities. The Issuer shall pay and shall
indemnify the Trustee against any tax, fee or other charge imposed on or assessed on the Trustee in
its capacity as such against deposited Government Securities or the principal and interest received
on such Government Securities.

          SECTION 8.07. Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or Government Securities in accordance with this Article VIII by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Issuer’s, the Company’s and each
Guarantor’s obligations under this Indenture, each Guarantee and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to this Article VIII until such time as the
Trustee or Paying Agent is permitted to apply all such money or Government Securities in accordance
with this Article VIII; provided, however, that, if the Issuer has made any payment of
premium, if any, or interest on or principal of any Notes because of the reinstatement of its
obligations, the Issuer shall be subrogated to the rights of the Holders of such Notes to receive
such payment from the money or Government Securities held by the Trustee or Paying Agent.

ARTICLE IX

Amendments

          SECTION 9.01. Without Consent of Holders. Notwithstanding Section 9.02, without the
consent of any Holder of Notes, the Issuer, the Company, the Guarantors and the Trustee may amend
or supplement this Indenture, the Notes, any Security Document or any Intercreditor Agreement:

     (i) to cure any ambiguity, omission, defect or inconsistency;

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     (ii) to provide for uncertificated Notes in addition to or in place of
certificated Notes (provided that the uncertificated Notes are issued in
registered form for purposes of Section 163(f) of the Code);

     (iii) to provide for the assumption by a successor corporation of the
obligations of the Issuer or a Guarantor to Holders under this Indenture in the
case of a merger or consolidation;

     (iv) to make any change that would provide any additional rights or benefits
to the Holders of Notes or that does not adversely affect the legal rights under
this Indenture of any such Holder;

     (v) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

     (vi) to evidence and provide for the acceptance of appointment under
this Indenture of a successor trustee;

     (vii) to add one or more Guarantors under this Indenture;

     (viii) to add any additional assets to the Collateral;

     (ix) to release Collateral from the Lien of the Security Documents when
permitted or required by this Indenture and the Security Documents;

     (x) to conform the text of this Indenture, the Notes or any Guarantee to any
provision of the section of the Offering Circular entitled “Description of the
Notes” to the extent that such provision in the section of the Offering Circular
entitled “Description of the Notes” was intended to be a verbatim recitation of a
provision of this Indenture, the Notes or such Guarantee;

     (xi) as necessary to conform this Indenture to any exemptive orders
under the TIA received by the Issuer or any Guarantor; or

     (xii) to make any amendment to the provisions of this Indenture relating to
the transfer and legending of Notes; provided, however, that (1) compliance
with this Indenture as so amended would not result in Notes being transferred in
violation of the Securities Act or any other applicable securities law and (2) such
amendment does not materially and adversely affect the rights of Holders to
transfer Notes.

          SECTION
9.02. With Consent of Holders. (a) Except as otherwise provided in this
Article IX or Section 6.03, this Indenture, the Security Documents, any Intercreditor Agreement and
the Notes may be amended or supplemented (or a waiver may be granted with respect to any default or
noncompliance with any provision thereof) with the written consent of the Holders of a majority in
principal amount of the Notes

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then outstanding (including consents obtained in connection with a purchase of, or tender offer or
exchange offer for, Notes). Without the consent of each Holder affected thereby, an amendment or
waiver may not, among other things:

     (i) reduce the principal amount of Notes whose Holders must consent to
an amendment, supplement or waiver;

     (ii) reduce the principal of or change the fixed maturity of any Note;

     (iii) reduce the rate of or change the time for payment of interest on any
Note;

     (iv) waive a Default in the payment of, principal of or premium, if any, or
interest on the Notes (except a rescission of acceleration of the Notes by the
Holders of at least a majority in aggregate principal amount of the Notes and a
waiver of the payment default that resulted from such acceleration);

     (v) (1) release any Guarantor from any of its obligations under its Notes
Guarantee other than in accordance with the terms of this Indenture or (2)
adversely change any Notes Guarantee or the priority of the Liens in the
Collateral or release all or substantially all of the Collateral from the Liens
created by the Security Documents, except in each case as specially provided for
in this Indenture and the Security Documents;

     (vi) make any Note payable in money other than that stated in the Notes;

     (vii) make any change in the provisions of this Indenture relating to waivers
of past Defaults or the rights of Holders of Notes to receive payments of principal
of or premium, if any, or interest on the Notes or to institute suit for the
enforcement of any such payment;

     (viii) make any change to the provisions applicable to the
redemption of any Note as set forth in Section 3.07;

     (ix) make any change in the ranking or priority of any Note that would
adversely affect the Holders; or

     (x) make any change in the amendment and waiver provisions.

          (b) Without the consent of the Holders of at least 66% in aggregate principal amount of
Notes then outstanding, an amendment or waiver may not (with respect to any Notes held by a
non-consenting Holder):

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     (i) modify any Security Document or the provisions of this Indenture dealing
with the Security Documents or application of trust moneys, or otherwise release
any Collateral from the Lien of the Security Documents, in any manner adverse to
such Holder other than in accordance with this Indenture, the Security Documents
and any Intercreditor Agreement; or

     (ii) modify any Intercreditor Agreement in any manner adverse to such Holder
other than in accordance with this Indenture, the Security Documents and such
Intercreditor Agreement.

          (c) The consent of the Holders is not necessary under this Indenture to approve the particular
form of any proposed amendment. It is sufficient if such consent approves the substance of the
proposed amendment.

          SECTION 9.03. Notice of Amendments. After an amendment under this Indenture becomes
effective, the Issuer shall mail to the Holders a notice briefly describing such amendment.
However, the failure to give such notice to all Holders, or any defect therein, shall not impair or
affect the validity of the amendment.

          SECTION 9.04. Compliance with Trust Indenture Act. Every amendment to this
Indenture or the Notes shall comply with the TIA, other than, to the extent this
Indenture has not been qualified under the TIA, TIA § 314(d) and TIA § 314(b) or
any successor provisions thereto, as then in effect.

          SECTION
9.05. Revocation and Effect of Consents and Waivers. (a) A consent to an
amendment or a waiver by a Holder of a Note shall bind the Holder and every subsequent Holder of
that Note or portion of the Note that evidences the same debt as the consenting Holder’s Note, even
if notation of the consent or waiver is not made on the Note. However, any such Holder or
subsequent Holder may revoke the consent or waiver as to such Holder’s Note or portion of the Note
if the Trustee receives the notice of revocation before the date the amendment or waiver becomes
effective. After an amendment or waiver becomes effective, it shall bind every Holder. An amendment
or waiver becomes effective upon the execution of such amendment or waiver by the Trustee.

          (b) The Issuer may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to give their consent or take any other action set forth above or
required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were Holders at such record
date (or their duly designated proxies), and only those Persons, shall be entitled to give such
consent or to revoke any consent previously given or to take any such action, whether or not such
Persons continue to be Holders after such record date. No such consent shall be valid or effective
for more than 120 days after such record date.

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          SECTION 9.06. Notation on or Exchange of Notes. If an amendment changes the terms of a
Note, the Trustee may require the Holder of the Note to deliver it to the Trustee. The Trustee may
place an appropriate notation on the Note regarding the changed terms and return it to the Holder.
Alternatively, if the Issuer or the Trustee so determines, the Issuer in exchange for the Note
shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. Failure
to make the appropriate notation or to issue a new Note shall not affect the validity of such
amendment.

          SECTION 9.07. Trustee To Sign Amendments. The Trustee shall sign any amendment
authorized pursuant to this Article IX if the amendment does not adversely affect the rights,
duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it.
In signing such amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Section 7.01) shall be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is
authorized or permitted by this Indenture and that such amendment constitutes legal, valid and
binding obligations of the Issuer and the Guarantors.

          SECTION 9.08. Payment for Consent. Neither the Issuer nor any Affiliate of the Issuer
shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of
interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Notes unless such
consideration is offered to all Holders and is paid to all Holders that so consent, waive or agree
to amend in the time frame set forth in solicitation documents relating to such consent, waiver or
agreement.

ARTICLE X

Guarantees

          SECTION 10.01. Guarantees. Each Guarantor hereby unconditionally and irrevocably
guarantees, jointly and severally, to each Holder and to the Trustee and its successors and assigns
(a) the full and punctual payment of principal of and premium, if any, and interest on the Notes
when due, whether at maturity, by acceleration, by redemption or otherwise, and all other monetary
obligations of the Issuer under this Indenture and the Notes and (b) the full and punctual
performance within applicable grace periods of all other obligations of the Issuer under this
Indenture and the Notes (all the foregoing being hereinafter collectively called the
“Guaranteed Obligations”). Each Guarantor further agrees that the Guaranteed Obligations
may be extended or renewed, in whole or in part, without notice or further assent from such
Guarantor and that such Guarantor will remain bound under this Article X notwithstanding any
extension or renewal of any Guaranteed Obligation.

          Each Guarantor waives presentation to, demand of, payment from and protest to the Issuer of
any of the Guaranteed Obligations and also waives notice of protest for nonpayment. Each Guarantor
waives notice of any default under the Notes or

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the Guaranteed Obligations. The obligations of each Guarantor hereunder shall not be affected by
(1) the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right
or remedy against the Issuer or any other Person (including any Guarantor) under this Indenture,
the Notes or any other agreement or otherwise; (2) any extension or renewal of this Indenture, the
Notes or any other agreement; (3) any rescission, waiver, amendment or modification of any of the
terms or provisions of this Indenture, the Notes or any other agreement; (4) the release of any
security held by any Holder or the Trustee for the Guaranteed Obligations or any of them; (5) the
failure of any Holder or the Trustee to exercise any right or remedy against any other guarantor of
the Guaranteed Obligations; or (6) except as set forth in Section 10.06, any change in the
ownership of such Guarantor.

          Each Guarantor further agrees that its Guarantee herein constitutes a guarantee of payment,
performance and compliance when due (and not a guarantee of collection) and waives any right to
require that any resort be had by any Holder or the Trustee to any security held for payment of the
Guaranteed Obligations. Each Guarantor further agrees that, in the event of default in the payment
of principal of or premium, if any, and interest in respect of the Notes (including any obligation
to repurchase the Notes), the Trustee may, subject, in the case of enforcing against any
Collateral, to any applicable Intercreditor Agreement, institute legal proceedings directly against
such Guarantor without first proceeding against the Issuer.

          Except as expressly set forth in Sections 8.01, 10.02 and 10.06, the obligations of each
Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination
for any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever
or by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor
herein shall not be discharged or impaired or otherwise affected by the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any remedy under this Indenture, the Notes
or any other agreement, by any waiver or modification of any thereof, by any default, failure or
delay, willful or otherwise, in the performance of the obligations, or by any other act or thing or
omission or delay to do any other act or thing which may or might in any manner or to any extent
vary the risk of such Guarantor or would otherwise operate as a discharge of such Guarantor as a
matter of law or equity.

          Each Guarantor further agrees that its Guarantee herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or
premium, if any, or interest on any Guaranteed Obligation is rescinded or must otherwise be
restored by any Holder or the Trustee upon the bankruptcy or reorganization of the Issuer or
otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder or
the Trustee has at law or in equity against any Guarantor by virtue hereof, upon the failure of the
Issuer to pay the principal of or premium, if any, or interest

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on any Guaranteed Obligation when and as the same shall become due, whether at maturity, by
acceleration, by redemption or otherwise, or to perform or comply with any other Guaranteed
Obligation, each Guarantor hereby promises to and shall, upon receipt of written demand by the
Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or the Trustee an amount equal
to the sum (without duplication) of (A) the unpaid principal amount, including any premium thereon
to the extent such premium has become due and payable, of such Guaranteed Obligations, (B) accrued
and unpaid interest on such Guaranteed Obligations (but only to the extent not prohibited by law)
and (C) all other monetary Guaranteed Obligations of the Company to the Holders and the Trustee.

          Each Guarantor further agrees that, as between it, on the one hand, and the Holders and the
Trustee, on the other hand, (i) the maturity of the Guaranteed Obligations hereby may be
accelerated as provided in Article VI for the purposes of such Guarantor’s Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the Guaranteed Obligations guaranteed hereby, and (ii) in the event of any declaration of
acceleration of such Guaranteed Obligations as provided in Article VI, such Guaranteed Obligations
(whether or not due and payable) shall forthwith become due and payable by such Guarantor for the
purposes of this Section.

          Each Guarantor also agrees to pay any and all costs and expenses (including counsel fees and
expenses) properly incurred by the Trustee or the Holders in enforcing any rights under this
Section.

          SECTION 10.02. Limitation on Liability. Each Guarantor that is a Subsidiary of the
Issuer and, by its acceptance of Notes, each Holder hereby confirms that it is the intention of all
such parties that the Notes Guarantee of such Guarantor not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar Federal, state, provincial, foreign or local law to the
extent applicable to any Note Guarantee and that such Guarantor’s Notes Guarantee otherwise be
limited to the maximum amount that can be guaranteed under applicable laws. Accordingly,
notwithstanding anything to the contrary in this Indenture, the obligations of each Guarantor that
is a Subsidiary of the Issuer under its Notes Guarantee shall be limited to the maximum amount that
can be guaranteed under applicable laws, including Bankruptcy Law, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal, state, provincial,
foreign or local law, after giving effect to such maximum amount and all other contingent and fixed
liabilities of such Guarantor that are relevant under such laws.

          SECTION 10.03. Successors and Assigns. This Article X shall be binding upon each
Guarantor and its successors and assigns and shall inure to the benefit of the successors and
assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by
any Holder or the Trustee, the rights and privileges conferred upon that party in this Indenture
and in the Notes shall automatically extend to

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and be vested in such transferee or assignee, all subject to the terms and conditions of this
Indenture.

          SECTION 10.04. No Waiver. Neither a failure nor a delay on the part of either the
Trustee or the Holders in exercising any right, power or privilege under this Article X shall
operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee
and the Holders herein expressly specified are cumulative and not exclusive of any other rights,
remedies or benefits which either may have under this Article X at law, in equity, by statute or
otherwise.

          SECTION 10.05. Modification. No modification, amendment or waiver of any provision of
this Article X, nor the consent to any departure by any Guarantor therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for which given. No
notice to or demand on any Guarantor in any case shall entitle such Guarantor to any other or
further notice or demand in the same, similar or other circumstances.

          SECTION 10.06. Release of a Subsidiary Guarantor. A Subsidiary Guarantor’s Notes
Guarantee shall terminate and be of no further force and effect and such Subsidiary Guarantor shall
be deemed to be released from all obligations under this Article X:

     (a) upon (i) the sale or other disposition (including by way of consolidation or
merger) of a Subsidiary Guarantor (including the sale or disposition of Equity Interests
of a Subsidiary Guarantor) following which such Subsidiary Guarantor is no longer a
Subsidiary of the Issuer or the Company or (ii) the sale or disposition of all or
substantially all the assets of a Subsidiary Guarantor, in each case other than to the
Company, the Issuer or an Affiliate of the Company or the Issuer and as otherwise
permitted by this Indenture, and the Issuer provides an Officers’ Certificate to the
Trustee to the effect that the Issuer will comply with its obligations under this
Indenture respect of such disposition;

     (b) upon the designation of a Subsidiary Guarantor as an Unrestricted Subsidiary if
permitted in accordance with the terms of this Indenture,

     (c) upon exercise by the Issuer of its option to elect Covenant Defeasance
or Legal Defeasance pursuant to Article VIII, or

     (d) upon the discharge of the Issuer’s obligations under this Indenture.

At the request of the Issuer, the Trustee shall execute and deliver an appropriate instrument (the
form of such instrument to be provided by the Issuer) evidencing such release.

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          SECTION 10.07. Release of the Company’s and the Intermediate Holdco’s Notes Guarantee.
The Company’s and the Intermediate Holdco’s Notes Guarantees shall terminate and be of no further
force and effect and the Company and the Intermediate Holdco shall be deemed to be released from
all obligations under this Article X:

     (a) upon exercise by the Issuer of its option to elect Covenant
Defeasance or Legal Defeasance pursuant to Article VIII, or

     (b) upon the discharge of the Issuer’s obligations under this Indenture.

At the request of the Issuer, the Trustee shall execute and deliver an appropriate
instrument evidencing such release.

          SECTION 10.08. Contribution. Each Guarantor that is a Subsidiary of the Issuer that
makes a payment under its Notes Guarantee shall be entitled upon payment in full of all Guaranteed
Obligations under this Indenture to a contribution from each other Guarantor that is a Subsidiary
of the Issuer in an amount equal to such other Guarantor’s pro rata portion of such payment based
on the respective net assets of all the Subsidiary Guarantors at the time of such payment
determined in accordance with GAAP.

          SECTION 10.09. Non-Impairment. The failure to endorse a Notes Guarantee on any Note
shall not affect or impair the validity of such Notes Guarantee.

ARTICLE XI

Security Documents

          SECTION
11.01. Collateral and Security Documents. (a) To secure the due and punctual
payment of the obligations of the Issuer and the Guarantors under this Indenture and the Notes and
the Notes Guarantees, the Issuer, the Guarantors and the Collateral Agent have entered into the
Security Documents providing for the creation of specified security interests and related matters.
The Trustee, the Issuer and each of the Guarantors hereby acknowledge and agree that the Collateral
Agent holds the Collateral in trust for the benefit of the Holders and the Trustee and the other
parties entitled to the benefit of the security provided under the Security Documents pursuant to
the terms of the Security Documents and any Intercreditor Agreements. Notwithstanding anything to
the contrary in this Indenture, no security interest or Lien is granted by the provisions of this
Indenture, the Notes or the Notes Guarantees.

          (b) Each Holder, by accepting a Note, agrees to all of the terms and provisions of the
Security Documents and any Intercreditor Agreements, as the same may be amended from time to time
pursuant to the
provisions of the Security Documents, any Intercreditor Agreements and this Indenture, and
authorizes and directs the Trustee and the Collateral Agent to perform their respective obligations
and exercise their respective rights under the Security Documents and any Intercreditor Agreements
in accordance

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therewith;
provided, however, that if any provisions of the Security Documents or any
Intercreditor Agreements limit, qualify or conflict with the duties imposed by the provisions of
the TIA (other than TIA § 314(d) and TIA § 314(b), which shall not be applicable to this Indenture
unless it is qualified under the TIA), the TIA (other than TIA § 314(d) and TIA § 314(b), which
shall not be applicable to this Indenture unless it is qualified under the TIA) will control.

          (c) Each Holder, by accepting a Note, irrevocably appoints the Collateral Agent to act as its
agent under the Security Documents and irrevocably authorizes the Collateral Agent to (i) perform
the duties and exercise the rights, powers and discretions that are specifically given to it under
the Security Documents, together with any other incidental rights, powers and discretions and (ii)
execute each document expressed to be executed by the Collateral Agent on its behalf.

          (d) As among the Holders, the Collateral shall be held for the equal and ratable benefit of
the Holders without preference, priority or distinction of any thereof over any other.

          SECTION 11.02. Release of Collateral. The Liens created by the Security Documents on
the Collateral shall be automatically released, without the need for any further action by any
Person, and will no longer secure the Notes or the Notes Guarantees or any other Obligations under
this Indenture, and the right of the Holders and holders of such other Obligations to the benefits
and proceeds of such Liens will terminate and be discharged:

     (a) in whole, upon payment in full of the principal of, accrued and unpaid
interest, if any, and premium, if any, on, the Notes;

     (b) upon the release of a Subsidiary Guarantor from its obligations under Article X,
as to the Collateral owned by such Subsidiary Guarantor;

     (c) in whole, upon the satisfaction and discharge of the Issuer’s
obligations under this Indenture in accordance with Article VIII;

     (d) in whole, upon the occurrence of a Legal Defeasance or a Covenant Defeasance in
accordance with Article VIII;

     (e) as to any property or assets constituting Collateral that are the subject of an
Asset Sale permitted by Section 4.06, at the time of such disposition;

     (f) to the extent that such Collateral is composed of Points that are held as
inventory, upon the sale of any such Points in the ordinary course of business; or

     (g) pursuant to any amendment or supplement to this Indenture or to the Notes effected
in accordance with Article IX.

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In addition, Collateral may be released from the Liens created by the Security Documents at any
time or from time to time in accordance with the provisions of the Security Documents and any
applicable Intercreditor Agreements. At the request of the Company (which request shall be set
forth in an Officers’ Certificate and an Opinion of Counsel) for a confirmation, acknowledgement or
other documentation requested by the Company to evidence the release of Liens or Collateral in
accordance with this Section 11.02, at the Company’s and Guarantors’ expense, the Trustee shall
promptly take all necessary actions to execute and/or deliver such confirmation, acknowledgement or
other documentation so requested by the Company. The release of any Collateral from the Lien of the
Security Documents or the release, in whole or in part, of the Liens created by the Security
Documents, shall not be deemed to impair the Lien on the Collateral in contravention of the
provisions of this Indenture if and to the extent the Collateral or Liens are released in
accordance with the terms of the applicable Security Documents, any applicable Intercreditor
Agreements and this Article XI.

          SECTION 11.03. After Acquired Property. From and after the Issue Date, if the Issuer
or any Guarantor acquires any property which is of a type constituting Collateral under the
Security Agreement or any other Security Document, it shall as soon as practicable after the
acquisition thereof execute and deliver such security instruments, financing statements and such
certificates and opinions of counsel as are required under this Indenture and the Security
Agreement to vest in the Collateral Agent a perfected security interest (subject only to Permitted
Collateral Liens) in such after-acquired property and to have such after-acquired property added to
the Collateral, and thereupon all provisions of this Indenture relating to the Collateral shall be
deemed to relate to such after-acquired property to the same extent and with the same force and
effect. If granting a security interest in such property requires the consent of a third party, the
Issuer or the applicable Guarantor will use commercially reasonable efforts to obtain such consent
with respect to the first-priority security interest for the benefit of the Collateral Agent on
behalf of the Holders of the Notes. If such third party does not consent to the granting of the
first-priority security interest after the use of such commercially reasonable efforts, the
applicable entity will not be required to provide such security interest.

          SECTION 11.04. Certificates and Opinions. On or before February 1 of each year, the
Company shall deliver to the Trustee an Officers’ Certificate either stating that such action has
been taken with respect to the recording, filing, re-recording and re-filling of this Indenture and
the Security Documents (including financing statements or other instruments) as is necessary to
maintain the security interest intended to be created thereby for the benefit of the Holders, and
reciting the details of such action, or stating that no such action is necessary to maintain such
Lien. To the extent that this Indenture is qualified under the TIA, any certificate or opinion
required by TIA § 314(d) may be made by an Officer of the Company except in cases where TIA §
314(d) requires that such certificate or opinion be made by an independent Person, which Person
shall be an independent engineer, appraiser or other expert selected or reasonably satisfactory to
the Trustee; provided, however, that, notwithstanding anything to the contrary in this
Indenture, the Security Documents or any applicable Intercreditor Agreements, the Issuer, the
Company and the Guarantors shall not be required to comply with all or any

93

 

portion of TIA § 314(d) if they determine, in good faith, that, under the terms of TIA § 314(d)
and/or any interpretation or guidance as to the meaning thereof by the SEC and its staff,
including “no action” letters or exemptive orders, all or any portion of TIA § 314(d) is
inapplicable to the released Collateral.

          SECTION 11.05. Use of Trust Monies. To the extent received by the Trustee pursuant to
the provisions of any Intercreditor Agreement, this Indenture, the Security Documents or
otherwise, all Trust Monies shall be held by the Trustee as a part of the Collateral securing the
Notes and, so long as no Event of Default has occurred and is continuing, shall either (i) be
released as contemplated by Section 4.06 if such Trust Monies represent Net Cash Proceeds or (ii)
to the extent not required to be applied pursuant to such covenant, at the direction of the
Company be applied by the Trustee from time to time to the payment of the principal of, premium,
if any, and interest on any Notes at maturity or upon redemption or retirement, or to the purchase
of Notes upon tender or in the open market or otherwise, in each case in compliance with this
Indenture. The Company or any Restricted Subsidiary may also withdraw Trust Monies constituting
net insurance proceeds to repair or replace the relevant Collateral in accordance with the
provisions of this Indenture. The Trustee shall be entitled to apply any Trust Monies to cure any
Event of Default. Trust Monies deposited with the Trustee shall be invested in Cash Equivalents
pursuant to the direction of the Company and, so long as no Default has occurred and is
continuing, the Company shall be entitled to any interest or dividends accrued, earned or paid on
such Cash Equivalents.

          SECTION 11.06. Further Assurances. The Issuer and the Guarantors shall, at their sole
expense, do all acts which may be reasonably necessary to confirm that the Collateral Agent holds,
for the benefit of the Holders of the Notes and the Trustee, duly created, enforceable and
perfected first-priority Liens in the Collateral, subject only to Permitted Collateral Liens. As
necessary, or upon request of the Collateral Agent, the Issuer and the Guarantors shall, at their
sole expense, execute, acknowledge and deliver such documents and instruments and take such other
actions which may be necessary to assure, perfect, transfer and confirm the rights conveyed by the
Security Documents, to the extent permitted by applicable law.

ARTICLE XII

Miscellaneous

          SECTION 12.01. Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies or conflicts with another provision which is required to be included in this
Indenture by the TIA, other than TIA § 314(d) or TIA § 314(b), the required provision shall
control.

          SECTION 12.02. Notices. Any notice or communication by the Issuer or any Guarantor,
on the one hand, or the Trustee, on the other hand, to the other shall be in writing and
delivered in person, mailed by first-class mail (registered or certified, return

94

 

receipt requested), transmitted via facsimile or sent by overnight air courier guaranteeing
next-day delivery, addressed as follows:

if to the Issuer or any Guarantor:

Diamond Resorts Corporation

10600 West Charleston Boulevard

Las Vegas, Nevada 89135

Facsimile: 702-765-8798

Attention: Treasurer

if to the Trustee:

Wells Fargo Bank, National Association

Corporate Trust Services

707 Wilshire Boulevard, 17th Floor

Los Angeles, CA 90017

Attention: Maddy Hall

Facsimile: (213) 614-3355

          The Issuer, the Company, any Guarantor or the Trustee by notice to the others may designate
additional or different addresses and/or facsimile numbers for subsequent notices or
communications.

          Any notice or communication to a Holder shall be mailed by first-class mail (registered or
certified, return receipt requested) or sent by overnight air courier guaranteeing next-day
delivery (or, in the case of Notes held in book entry form, by electronic transmission) to such
Holder at such Holder’s address as it appears on the registration books of the Registrar and shall
be sufficiently given if so mailed or sent within the time prescribed. All notices or
communications shall be deemed to have been duly given at the time delivered in person, if so
delivered; three Business Days after being deposited in the mail, postage prepaid, if mailed; upon
acknowledgment of receipt, if transmitted via facsimile; and the next Business Day after timely
delivery to the courier if sent by overnight air courier guaranteeing next-day delivery.

          Failure to mail or send a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders. If a notice or communication is delivered,
mailed, transmitted or sent in the manner provided above within the time prescribed, it is duly
given, whether or not the addressee
receives it.

          Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance on such waiver.

95

 

          In case it shall be impracticable to give notice in the manner provided above,
including by reason of a suspension of regular mail service, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification for every purpose
hereunder.

          SECTION 12.03. Communication by Holders with Other Holders. Holders may communicate
pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or
the Notes. The Issuer, any Guarantor, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

          SECTION 12.04. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Issuer to the Trustee to take or refrain from taking any action under this
Indenture, the Issuer shall furnish to the Trustee:

          (a) an Officers’ Certificate in form and substance reasonably satisfactory
to the Trustee stating that, in the opinion of the signers, all conditions
precedent,
if any, provided for in this Indenture relating to the proposed action have been
complied with; and

          (b) an Opinion of Counsel in form and substance reasonably satisfactory
to the Trustee stating that, in the opinion of such counsel (who may rely upon an
Officers’ Certificate as to matters of fact), all such conditions precedent have
been complied with.

          SECTION 12.05. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture
(other than pursuant to Section 6.05) shall include:

          (a) a statement that the individual making such certificate or opinion has
read such covenant or condition;

          (b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate
or opinion are based;

          (c) a statement that, in the opinion of such individual, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

          (d) a statement as to whether or not, in the opinion of such individual,
such covenant or condition has been complied with.

          SECTION 12.06. When Notes Disregarded. In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned
by the Company, the Issuer or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the

96

 

Company or the Issuer shall be disregarded and deemed not to be outstanding, except that, for the
purpose of determining whether the Trustee shall be protected in relying on any such direction,
waiver or consent, only Notes which the Trustee knows are so owned shall be so disregarded. Subject
to the foregoing, only Notes outstanding at the time shall be considered in any such determination.

          SECTION 12.07. Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by or a meeting of Holders. The Registrar and the Paying Agent may make
reasonable rules for their functions.

          SECTION 12.08. Legal Holidays. If a payment date is a Legal Holiday, payment shall be
made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the
intervening period on any amount that would otherwise have been payable on such payment date if it
were not a Legal Holiday. If a regular record date is a Legal Holiday, the record date shall not be
affected.

          SECTION 12.09. Governing Law. This Indenture and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York, without giving effect to
applicable principles of conflicts of law to the extent that the application of the law of another
jurisdiction would be required thereby.

          SECTION 12.10. No Recourse Against Others. No director, officer, employee,
incorporator or shareholder of the Company or the Issuer, and no director, trustee, officer,
employee, incorporator or shareholder (other than the Company or a Restricted Subsidiary) of any
Subsidiary of the Company, as such, shall have any liability for any obligations of the Company,
the Issuer or any Guarantor under the Notes, this Indenture, any Notes Guarantee, any Registration
Rights Agreement (as defined in the Appendix), the Security Documents or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a Note, each Holder
shall waive and release all such liability. This waiver and release shall be part of the
consideration for the issue of the Notes.

          SECTION 12.11. Successors. All agreements of the Issuer and the Guarantors in this
Indenture and the Notes shall bind their successors. All agreements of the Trustee in this
Indenture shall bind its successors.

          SECTION 12.12. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

          SECTION
12.13. Table of Contents; Headings. The table of contents, cross-reference
sheet and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not intended to be considered a part of this Indenture and shall
not modify or restrict any of the terms or provisions of this Indenture.

97

 

          SECTION 12.14. Severability. In case any provision in this Indenture or the Notes shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby, and such provision shall be
ineffective only to the extent of such invalidity, illegality or unenforceability.

          SECTION 12.15. No Adverse Interpretation of Other Agreements. This Indenture may not
be used to interpret any other indenture, loan or debt agreement of the Issuer, the Company or any
of their Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may not be
used to interpret this Indenture.

          SECTION 12.16. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance
with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in
order to help fight the funding of terrorism and money laundering, is required to obtain, verify
and record information that identifies each person or legal entity that establishes a relationship
or opens an account with the Trustee. The parties to this Indenture agree that they will provide
the Trustee with such information as it may request in order for the Trustee to satisfy the
requirements of the U.S.A. Patriot Act.

          SECTION 12.17. Force Majeure. In no event shall the Trustee be responsible or liable
for any failure or delay in the performance of its obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services, it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

98

 

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

	 	 	 	 	 	 	 

	 	 	DIAMOND RESORTS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	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	 	 
	 
	 	 	 	 	 	 
	 	 	DIAMOND RESORTS HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David F. Palmer
 

	 	 
	 	 	Name: David F. Palmer	 	 
	 	 	Title: Executive Vice President	 	 

AKGI POIPU INVESTMENTS, INC.

AKGI-ST. MAARTEN N.V.

CHESTNUT FARMS, LLC

CUMBERLAND GATE, LLC

DIAMOND RESORTS BEACH GROUP, LLC

DIAMOND RESORTS CALIFORNIA COLLECTION DEVELOPMENT, LLC

DIAMOND RESORTS CENTRALIZED SERVICES COMPANY

DIAMOND RESORTS CITRUS SHARE HOLDING, LLC

DIAMOND RESORTS CORAL SANDS DEVELOPMENT, LLC

DIAMOND RESORTS CYPRESS POINTE I DEVELOPMENT, LLC

DIAMOND RESORTS CYPRESS POINTE II DEVELOPMENT, LLC

DIAMOND RESORTS CYPRESS POINTE III DEVELOPMENT, LLC

DIAMOND RESORTS DAYTONA DEVELOPMENT, LLC

DIAMOND RESORTS DEVELOPER AND SALES HOLDING COMPANY

DIAMOND RESORTS EPIC MORTGAGE HOLDINGS, LLC

DIAMOND RESORTS FALL CREEK DEVELOPMENT, LLC

DIAMOND RESORTS FINANCE HOLDING COMPANY

DIAMOND RESORTS FINANCIAL SERVICES, INC.

DIAMOND RESORTS GRAND BEACH I DEVELOPMENT, LLC

 

 

DIAMOND RESORTS GRAND BEACH II DEVELOPMENT, LLC 

DIAMOND RESORTS GREENSPRINGS DEVELOPMENT, LLC 

DIAMOND RESORTS HAWAII COLLECTION DEVELOPMENT, LLC 

DIAMOND RESORTS HILTON HEAD DEVELOPMENT, LLC

DIAMOND RESORTS INTERNATIONAL CLUB, INC. 

DIAMOND RESORTS INTERNATIONAL MARKETING, INC. 

DIAMOND RESORTS LAS VEGAS DEVELOPMENT, LLC 

DIAMOND RESORTS MANAGEMENT AND EXCHANGE HOLDING COMPANY

DIAMOND RESORTS MANAGEMENT, INC. 

DIAMOND RESORTS MAZATLAN LAND, LLC 

DIAMOND RESORTS MEXICO SHARE HOLDING, LLC 

DIAMOND RESORTS MORTGAGE HOLDINGS, LLC 

DIAMOND RESORTS PALM SPRINGS DEVELOPMENT, LLC 

DIAMOND RESORTS POCO DIABLO DEVELOPMENT, LLC 

DIAMOND RESORTS POIPU DEVELOPMENT, LLC 

DIAMOND RESORTS POLO DEVELOPMENT, LLC 

DIAMOND RESORTS PORT ROYAL DEVELOPMENT, LLC 

DIAMOND RESORTS POWHATAN DEVELOPMENT, LLC 

DIAMOND RESORTS RESIDUAL ASSETS DEVELOPMENT, LLC 

DIAMOND RESORTS RESIDUAL ASSETS FINANCE, LLC 

DIAMOND RESORTS RESIDUAL ASSETS M&E, LLC 

DIAMOND RESORTS RIDGE ON SEDONA DEVELOPMENT, LLC 

DIAMOND RESORTS RIDGE POINTE DEVELOPMENT, LLC 

DIAMOND RESORTS SAN LUIS BAY DEVELOPMENT, LLC 

DIAMOND RESORTS SCOTTSDALE DEVELOPMENT, LLC 

DIAMOND RESORTS SEDONA SPRINGS DEVELOPMENT, LLC 

DIAMOND RESORTS SEDONA SUMMIT DEVELOPMENT, LLC 

DIAMOND RESORTS ST. CROIX DEVELOPMENT, LLC 

DIAMOND RESORTS STEAMBOAT DEVELOPMENT, LLC

DIAMOND RESORTS TAHOE BEACH & SKI DEVELOPMENT, LLC 

DIAMOND RESORTS U.S. COLLECTION DEVELOPMENT, LLC 

DIAMOND RESORTS VILLA MIRAGE DEVELOPMENT, LLC 

DIAMOND RESORTS VILLAS OF SEDONA DEVELOPMENT, LLC 

DIAMOND RESORTS WEST MAUI DEVELOPMENT, LLC 

FOSTER SHORES, LLC 

GEORGE ACQUISITION SUBSIDIARY, INC. 

GINGER CREEK, LLC 

GRAND ESCAPES, LLC

INTERNATIONAL TIMESHARES MARKETING, LLC 

LAKE TAHOE RESORT PARTNERS, LLC 

MAZATLAN DEVELOPMENT INC.

 

 

MMG DEVELOPMENT CORP.

POIPU RESORT PARTNERS, L.P.

RESORT MANAGEMENT INTERNATIONAL, INC.

RESORT DEVELOPMENT INTERNATIONAL, INC.

SUNTERRA RESORT RENTAL MANAGEMENT, INC.

WALSHAM LAKE, LLC

WEST MAUI RESORT PARTNERS, L.P.

	 	 	 	 	 	 	 

	 

	 	By:
	 	/s/ David F. Palmer
 

	 	 
	 	 	Name: David F. Palmer	 	 
	 	 	Title: Executive Vice President	 	 

[Signature Page to Indenture]

 

 

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

	 	 	 	 	 	 	 

	 	 	WELLS FARGO BANK, NATIONAL	 	 
	 	 	ASSOCIATION, SOLELY AS TRUSTEE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Maddy Hall
 

	 	 
	 	 	Name: Maddy Hall	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL	 	 
	 	 	ASSOCIATION, SOLELY AS
 COLLATERAL AGENT	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Maddy Hall
 

	 	 
	 	 	Name: Maddy Hall	 	 
	 	 	Title: Vice President	 	 

[Signature Page to Indenture]

 

 

[Signature Page to Indenture]

 

 

RULE 144A/REGULATION S APPENDIX

to the Indenture, dated as of August 13, 2010, among Diamond Resorts

Corporation, a Maryland corporation, Diamond Resorts Parent, LLC, a

Nevada limited liability company, Diamond Resorts Holdings, LLC, a

Nevada limited liability company, the Subsidiary Guarantors

(as defined therein) listed on the signature pages thereto and

Wells Fargo Bank, National Association, a national

banking association, as trustee (the “Indenture”)

PROVISIONS
RELATING TO INITIAL NOTES,

PRIVATE EXCHANGE NOTES,

EXCHANGE NOTES AND

REPLACEMENT NOTES

     1. Definitions

          1.1 Definitions. For the purposes of this Rule 144A/Regulation S Appendix (this
“Appendix”), the following terms shall have the meanings indicated below (and other capitalized
terms used but not defined in this Appendix shall have the meanings given to them in the Indenture,
except as the context requires otherwise):

          “Applicable Procedures” means, with respect to any transfer or transaction involving a
Temporary Regulation S Global Note or beneficial interest therein, the rules and procedures of the
Depository for such a Temporary Regulation S Global Note, to the extent applicable to such
transaction and as in effect from time to time.

          “Definitive Note” means a certificated Note, other than a Global Note, bearing, if
required, the appropriate Restrictive Legends set forth in Section 2.3(e) of this Appendix.

          “Depository” means The Depository Trust Company, its nominees and their respective
successors.

          “Distribution Compliance Period”, with respect to any Notes, means the period of 40
consecutive days beginning on and including the later of (i) the day on which such Notes are first
offered to Persons other than distributors (as defined in Regulation S under the Securities Act) in
reliance on Regulation S and (ii) the issue date with respect to such Notes.

          “Exchange Notes” means (1) the 12.00% Senior Secured Notes due 2018 issued pursuant to
the Indenture in connection with the Registered Exchange Offer pursuant to the Registration Rights
Agreement and (2) Additional Notes, if any, issued pursuant to a registration statement filed with
the SEC under the Securities Act.

          “Initial Notes” means (1) $425,000,000 aggregate principal amount of 12.00% Senior
Secured Notes due 2018 issued on the Issue Date and (2) Additional Notes, if any, issued in a
transaction exempt from the registration requirements of the Securities Act.

 

 

          “Initial Purchasers” means (1) with respect to the Initial Notes issued on the Issue
Date, Credit Suisse Securities (USA) LLC, Banc of America Securities LLC and Guggenheim Securities,
LLC and (2) with respect to each issuance of Additional Notes, the Persons purchasing such
Additional Notes under the related Purchase Agreement.

          “Notes” means all the 12.00% Senior Secured Notes due 2018 issued under the Indenture,
treated as a single class.

          “Notes Custodian” means the custodian with respect to a Global Note (as appointed by
the Depository), or any successor Person thereto and shall initially be the Trustee.

          “Private Exchange” means the offer by the Issuer, pursuant to the Registration Rights
Agreement, to the Initial Purchasers to issue and deliver to each Initial Purchaser, in exchange
for the Initial Notes held by the Initial Purchaser as part of its initial distribution, a like
aggregate principal amount of Private Exchange Notes.

          “Private Exchange Notes” means any 12.00% Senior Secured Notes due 2018 issued in
connection with a Private Exchange.

          “Purchase Agreement” means (1) with respect to the Initial Notes issued on the Issue
Date, the Purchase Agreement dated August 10, 2010, among the Issuer, the Guarantors and the
Initial Purchasers, and (2) with respect to each issuance of Additional Notes, the purchase
agreement or underwriting agreement among the Issuer and the Persons purchasing such Additional
Notes.

          “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

          “Registered Exchange Offer” means the offer by the Issuer, pursuant to the
Registration Rights Agreement, to certain Holders of Initial Notes, to issue and deliver to such
Holders, in exchange for the Initial Notes, a like aggregate principal amount of Exchange Notes
registered under the Securities Act.

          “Registration Rights Agreement” means, as applicable, (1) the Registration Rights
Agreement, dated as of the Issue Date, among the Issuer, the Guarantors and the Initial Purchasers
and (2) with respect to each issuance of Additional Notes issued in a transaction exempt from the
registration requirements of the Securities Act, the registration rights agreement, if any, among
the Issuer and the Persons purchasing such Additional Notes under the related Purchase Agreement.

          “Restrictive Legends” means the Restricted Note Legend, the Regulation S
Legend, the Regulation S Global Note Legend and the Temporary Regulation S Global Note
Legend.

          “Rule 144A Notes” means all Notes offered and sold to QIBs in reliance on Rule 144A.

App.-2

 

 

          “Securities Act” means the Securities Act of 1933.

          “Shelf Registration Statement” means the registration statement issued by the Issuer
in connection with the offer and sale of Initial Notes or Private Exchange Notes pursuant to a
Registration Rights Agreement.

          “Transfer Restricted Notes” means each Note until (i) the date on which such Transfer
Restricted Note has been exchanged by a person other than a broker-dealer for a freely transferable
Exchange Note in the Registered Exchange Offer, (ii) following the exchange by a broker-dealer in
the Registered Exchange Offer of a Note for an Exchange Note, the date on which such Exchange Note
is sold to a purchaser who receives from such broker-dealer on or prior to the date of such sale a
copy of the prospectus contained in the Exchange Offer Registration Statement, (iii) the date on
which such Note has been effectively registered under the Securities Act and disposed of in
accordance with the Shelf Registration Statement or (iv) the earliest date that is no less than two
years after the Issue Date and on which such Note (other than such Note held by an affiliate of the
Issuer) is no longer subject to any restrictions on transfer under the Securities Act, including
those pursuant to Rule 144 thereunder.

1.2 Other Definitions

	 	 	 
	 	 	Section of this
	 	 	Appendix in Which
	 	 	Definition
	             Term	 	Appears:
	“Agent Members”
	 	2.1(b)
	 
	“Definitive Note Legend”
	 	2.3(e)
	 
	“Global Note Legend”
	 	2.3(e)
	 
	“Global Notes”
	 	2.1(a)
	 
	“OID Legend”
	 	2.3(e)
	 
	“Permanent Regulation S Global Notes”
	 	2.1(a)
	 
	“Regulation S”
	 	2.1(a)
	 
	“Regulation S Global Note Legend”
	 	2.3(e)
	 
	“Regulation S Global Notes”
	 	2.1(a)
	 
	“Regulations Legend”
	 	2.3(e)
	 
	“Replacement Notes”
	 	2.2

App.-3

 

	 	 	 
	 	 	Section of this
	 	 	Appendix in Which
	 	 	Definition
	           Term	 	Appears:
	“Restricted Global Notes”
	 	2.1(a)
	 
	“Restricted Note Legend”
	 	2.3(e)
	 
	“Rule 144A”
	 	2.1(a)
	 
	“Rule 144A Global Notes”
	 	2.1(a)
	 
	“Temporary Regulation S Global Note Legend”
	 	2.3(e)
	 
	“Temporary Regulation S Global Notes”
	 	2.1(a)
	 
	“Unrestricted Global Notes”
	 	2.1(a)

     2. The Notes.

          2.1(a) Form and Dating. The Initial Notes will be offered and sold by the
Issuer pursuant to a Purchase Agreement. The Initial Notes will be resold initially only to (i)
QIBs in reliance on Rule 144A under the Securities Act
(“Rule 144A”) and (ii) Persons other than
U.S. Persons (as defined in Regulation S) in reliance on Regulation S under the Securities Act
(“Regulation S”). Initial Notes may thereafter be transferred to, among others and QIBs and
purchasers in reliance on Regulation S, subject to the restrictions on transfer set forth herein.
Initial Notes initially resold pursuant to Rule 144A shall be issued initially in the form of one
or more permanent global Notes in definitive, fully registered form
(“Rule 144A Global Notes”); and
Initial Notes initially resold pursuant to Regulation S shall be issued initially in the form of
one or more temporary global securities in fully registered form (“Temporary Regulation S
Global Notes”), in each case without interest coupons and with the global securities legend and
the applicable Restrictive Legends, which shall be deposited on behalf of the purchasers of the
Initial Notes represented thereby with the Notes Custodian and registered in the name of the
Depository or a nominee of the Depository, duly executed by the Issuer and authenticated by the
Trustee as provided in the Indenture. Except as set forth in this Section 2.1(a), beneficial
ownership interests in a Temporary Regulation S Global Note will not be exchangeable for interests
in Rule 144A Global Notes, permanent Regulation S global Notes (“Permanent Regulation S Global
Notes” and, together with Temporary Regulation S Global Notes, “Regulation S Global
Notes”) or any other Note prior to the expiration of the Distribution Compliance Period and
then, after the expiration of the Distribution Compliance Period, may be exchanged for interests in
a Rule 144A Global Note or a Permanent Regulation S Global Note only upon certification in form
reasonably satisfactory to the Trustee that beneficial ownership interests in such Temporary
Regulation S Global Note are owned either by non-U.S. persons or U.S. persons who purchased such
interests in a transaction that did not require registration under the Securities Act.

          Beneficial interests in a Temporary Regulation S Global Note may be exchanged for
interests in Rule 144A Global Notes if (1) such exchange occurs in

App.-4

 

 

connection with a transfer of Notes in compliance with Rule 144A and (2) the transferor of the
beneficial interest in the Temporary Regulation S Global Note first delivers to the Trustee a
written certificate (substantially in the form of Exhibit III) to the effect that the beneficial
interest in the Temporary Regulation S Global Note is being transferred to a Person (a) who the
transferor reasonably believes to be a QIB, (b) purchasing for its own account or the account of a
QIB in a transaction meeting the requirements of Rule 144A, and (c) in accordance with all
applicable securities laws of the States of the United States and other jurisdictions.

          Beneficial interests in a Rule 144A Global Note may be transferred to a Person who takes
delivery in the form of an interest in a Regulation S Global Note, whether before or after the
expiration of the Distribution Compliance Period, only if the transferor first delivers to the
Trustee a written certificate (in the form provided in the Indenture) to the effect that such
transfer is being made in accordance with Rule 903 or 904 of Regulation S or Rule 144 (if
applicable).

          Rule 144A Global Notes, Temporary Regulation S Global Notes and Permanent Regulation S Global
Notes are collectively referred to herein as “Restricted Global Notes.” Any other Notes in
global form, without Restrictive Legends, are collectively referred to herein as “Unrestricted
Global Notes” (together with Restricted Global Notes,
“Global Notes”). The aggregate principal
amount of the Global Notes may from time to time be increased or decreased by adjustments made on
the records of the Trustee and the Depository or its nominee as hereinafter provided.

          (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a Global
Note deposited with or on behalf of the Depository.

          The Issuer shall execute and the Trustee shall, in accordance with this Section 2.1(b),
authenticate and deliver initially one or more Global Notes that (a) shall be registered in the
name of the Depository for such Global Note or Global Notes or the nominee of such Depository and
(b) shall be delivered by the Trustee to such Depository or pursuant to such Depository’s
instructions or held by the Trustee as custodian for the Depository.

          Members
of, or participants in, the Depository (“Agent Members”) shall have no rights under
the Indenture with respect to any Global Note held on their behalf by the Depository or by the
Trustee as the custodian of the Depository or under such Global Note, and the Issuer, the Trustee
and any agent of the Issuer or the Trustee shall be entitled to treat the Depository as the
absolute owner of such Global Note for all purposes whatsoever. Notwithstanding the foregoing,
nothing herein shall prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee from
giving effect to any written certification, proxy or other authorization furnished by the
Depository or impair, as between the Depository and its Agent Members, the operation of customary
practices of such Depository governing the exercise of the rights of a holder of a beneficial
interest in any Global Note.

App.-5

 

 

          (c) Definitive Notes. Except as provided in this Section 2.1 of this Appendix or
Section 2.3 or 2.4 of this Appendix, owners of beneficial interests in Global Notes shall not be
entitled to receive physical delivery of Definitive Notes.

     2.2 Authentication. The Trustee shall authenticate and deliver (1) on the Issue
Date, an aggregate principal amount of $425,000,000 12.00% Senior Secured Notes due 2018, (2) any
Additional Notes for an original issue in an aggregate principal amount specified in the written
order of the Issuer pursuant to this Section 2.2, (3) Exchange Notes or Private Exchange Notes for
issue only in a Registered Exchange Offer or a Private Exchange, respectively, pursuant to a
Registration Rights Agreement, for a like principal amount of Initial Notes and (4) any other Notes
issued after the Issue Date in replacement of or exchange for any Note in like principal amount
(any such Notes, “Replacement Notes”), in each case upon a written order of the Issuer signed by an
Officer. Such order shall specify the amount of the Notes to be authenticated and the date on which
the original issue of Notes is to be authenticated and, in the case of any issuance of Additional
Notes pursuant to Section 2.13 of the Indenture, shall certify that such issuance is in compliance
with Section 4.03 of the Indenture.

2.3
Transfer and Exchange. (a) Transfer and Exchange of Definitive Notes.
When Definitive Notes are presented to the Registrar with a request:

          (x) to register the transfer of such Definitive Notes; or

          (y) to exchange such Definitive Notes for an equal principal amount of
Definitive Notes of other authorized denominations,

the Registrar shall register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met; provided, however, that the Definitive
Notes surrendered for transfer or exchange:

     (i) shall be duly endorsed or accompanied by a written instrument of transfer in
form reasonably satisfactory to the Issuer and the Registrar, duly executed by the
Holder thereof or its attorney duly authorized in writing; and

     (ii) if such Definitive Notes are required to bear a restricted securities legend,
they are being transferred or exchanged pursuant to an effective registration statement
under the Securities Act, pursuant to Section 2.3(b) of this Appendix or pursuant to clause
(A), (B) or (C) below, and are accompanied by the following additional information and
documents, as applicable:

     (A) if such Definitive Notes are being delivered to the Registrar by a Holder
for registration in the name of such Holder, without transfer, a certification from
such Holder to that effect; or

     (B) if such Definitive Notes are being transferred to the Issuer, a
certification to that effect; or

App.-6

 

 

     (C) if such Definitive Notes are being transferred (x) pursuant to an
exemption from registration in accordance with Rule 144A,
Regulation S or Rule 144 under the Securities Act; or (y) in reliance upon another exemption from the
requirements of the Securities Act: (i) a certification to that effect (in the
form set forth on the reverse of the Note) and (ii) if the Issuer so requests, an
opinion of counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the legend set forth in Section
2.3(e)(i) of this Appendix.

          (b) Restrictions on Transfer of a Definitive Note for a Beneficial Interest in a
Restricted Global Note. A Definitive Note may not be exchanged for a beneficial interest in a
Rule 144A Global Note or a Permanent Regulation S Global Note except upon satisfaction of the
requirements set forth below. Upon receipt by the Trustee of a Definitive Note, duly endorsed or
accompanied by appropriate instruments of transfer, in form satisfactory to the Trustee, together
with:

     (i) certification, in the form set forth on the reverse of the Note, that
such Definitive Note is either (A) being transferred to a QIB in accordance with
Rule 144A or (B) being transferred after expiration of the Distribution
Compliance Period by a Person who initially purchased such Note in reliance on
Regulation S to a buyer who elects to hold its interest in such Note in the form
of a beneficial interest in the Permanent Regulation S Global Note; and

     (ii) written instructions directing the Trustee to make, or to direct the
Notes Custodian to make, an adjustment on its books and records with respect to
such Rule 144A Global Note (in the case of a transfer pursuant to clause (b)(i)(A)
of this Section 2.3) or Permanent Regulation S Global Note (in the case of a
transfer pursuant to clause (b)(i)(B) of this Section 2.3) to reflect an increase
in the aggregate principal amount of the Notes represented by the Rule 144A Global
Note or Permanent Regulation S Global Note, as applicable, such instructions to
contain information regarding the Depository account to be credited with such
increase,

then the Trustee shall cancel such Definitive Note and cause, or direct the Notes Custodian to
cause, in accordance with the standing instructions and procedures existing between the Depository
and the Notes Custodian, the aggregate principal amount of Notes represented by the Rule 144A
Global Note or Permanent Regulation S Global Note, as applicable, to be increased by the aggregate
principal amount of the Definitive Note to be exchanged and shall credit or cause to be credited to
the account of the Person specified in such instructions a beneficial interest in the Rule 144A
Global Note or Permanent Regulation S Global Note, as applicable, equal to the principal amount of
the Definitive Note so canceled. If no Rule 144A Global Notes or Permanent Regulation S Global
Notes, as applicable, are then outstanding, the Issuer shall issue and the Trustee shall
authenticate, upon written order of the Issuer in the form of an Officers’ Certificate

App.-7

 

 

of the Issuer, a new Rule 144A Global Note or Permanent Regulation S Global Note, as applicable,
in the appropriate principal amount.

          (c) Transfer and Exchange of Global Notes.

     (i) The transfer and exchange of Global Notes or beneficial interests therein
shall be effected through the Depository, in accordance with the Indenture
(including applicable restrictions on transfer set forth herein, if any) and the
procedures of the Depository therefor. A transferor of a beneficial interest in a
Global Note shall deliver to the Registrar a written order given in accordance with
the Depository’s procedures containing information regarding the participant
account of the Depository to be credited with a beneficial interest in the Global
Note. The Registrar shall, in accordance with such instructions instruct the
Depository to credit to the account of the Person specified in such instructions a
beneficial interest in the Global Note and to debit the account of the Person
making the transfer of the beneficial interest in the Global Note being
transferred.

     (ii) If the proposed transfer is a transfer of a beneficial interest in one
Global Note to a beneficial interest in another Global Note, the Registrar shall
reflect on its books and records the date and an increase in the principal amount
of the Global Note to which such interest “is being transferred in an amount equal
to the principal amount of the interest to be so transferred, and the Registrar
shall reflect on its books and records the date and a corresponding decrease in the
principal amount of the Global Note from which such interest is being transferred.
Upon such transfer, the beneficial interest in such first-referenced Global Note
shall cease to be an interest in such Global Note and shall become an interest in
such other Global Note.

     (iii) Notwithstanding any other provisions of this Appendix (other than the
provisions set forth in Section 2.4 of this Appendix), a Global Note may not be
transferred as a whole except by the Depository to a nominee of the Depository or by
a nominee of the Depository to the Depository or another nominee of the Depository
or by the Depository or any such nominee to a successor Depository or a nominee of
such successor Depository.

     (iv) In the event that a beneficial interest in a Restricted Global Note is
exchanged for Definitive Notes under Section 2.4 of this Appendix, prior to the
consummation of a Registered Exchange Offer or the effectiveness of a Shelf
Registration Statement with respect to such Notes, such Notes may be exchanged only
in accordance with such procedures as are substantially consistent with the
provisions of this Section 2.3 (including the certification requirements set forth
on the reverse of the Initial Notes intended to ensure that such transfers comply
with Rule 144A, Regulation

App.-8

 

 

S or another applicable exemption under the Securities Act, as the case may be) and
such other procedures as may from time to time be adopted by the Issuer.

          (d)
Restrictions on Transfer of Temporary Regulation S Global Notes. During the
Distribution Compliance Period, beneficial ownership interests in Temporary Regulation S Global
Notes may only be sold, pledged or transferred in accordance with the Applicable Procedures and
only (i) to the Issuer, (ii) in an offshore transaction in accordance with Regulation S (other than
a transaction resulting in an exchange for an interest in a Permanent Regulation S Global Note), or
(iii) pursuant to an effective registration statement under the Securities Act, in each case in
accordance with any applicable securities laws of any State of the United States.

          (e) Legend. In each case unless the Issuer determines otherwise in compliance
with applicable law:

     (i) Except as permitted by the following paragraphs (ii), (iii), (iv) and (v),
each Note certificate evidencing Restricted Global Notes (and all Notes issued in
exchange therefor or in substitution thereof), in the case of Notes offered
otherwise than in reliance on Regulation S, shall bear a legend in substantially
the following form (the “Restricted Note Legend”):

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933
(THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY
NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION
FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A THEREUNDER.

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE ISSUER THAT
(A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN A TRANSACTION IN

App.-9

 

 

ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE),
(IV) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1), (2),
(3) OR (7) UNDER THE SECURITIES ACT THAT IS ACQUIRING THE RESTRICTED NOTES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN
A MINIMUM PRINCIPAL AMOUNT OF SUCH NOTES OF $250,000, FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF
THE SECURITIES ACT OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE.

     Each certificate evidencing a Note offered in reliance on Regulation S shall, in addition to
the foregoing, bear a legend in substantially the following form (the
“Regulation S Legend”):

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT
FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS.
TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES
ACT.

     Each Global Note shall also bear the following additional legend (and/or such other
legend as may be required by the Depository) (the “Global
Note Legend”):

App.-10

 

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK,
NEW YORK, TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

     Each Regulation S Global Note shall also bear a legend substantially in the following form
(the “Regulation S Global Note Legend”):

UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR COMPLETION OF THE OFFERING, AN OFFER OR
SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE SECURITIES
ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR
SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.

     Each Temporary Regulation S Global Note shall also bear a legend substantially in the
following form (the “Temporary Regulation S Global Note Legend”):

EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY

App.-11

 

 

REGULATION S GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S
GLOBAL NOTE OR ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE SECURITIES REPRESENTED HEREBY
WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE
“40-DAY DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S UNDER
THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE
THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED
SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. DURING
SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED (I) TO THE ISSUER, (II) OUTSIDE
THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES
ACT, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF
CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOTIFY ANY
PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

AFTER THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD BENEFICIAL INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE MAY BE EXCHANGED FOR INTERESTS IN A RULE 144A GLOBAL NOTE ONLY IF (1) SUCH
EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN COMPLIANCE WITH RULE 144A AND
(2) THE TRANSFEROR OF THE REGULATION S GLOBAL NOTE FIRST DELIVERS TO THE TRUSTEE A WRITTEN
CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE

App.-l2

 

 

REGULATION S GLOBAL NOTE IS BEING TRANSFERRED (A) TO A PERSON WHO THE TRANSFEROR
REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE
144A, (B) TO A PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, AND (C) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND
OTHER JURISDICTIONS.

BENEFICIAL INTERESTS IN A RULE 144A GLOBAL NOTE MAY BE TRANSFERRED TO A PERSON WHO TAKES
DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL NOTE, WHETHER BEFORE OR
AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR
FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS
CERTIFICATE) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903
OR 904 OF REGULATION S OR RULE 144 (IF AVAILABLE).

     Each Definitive Note shall also bear the following additional legend (the “Definitive Note
Legend”):

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR SUCH
CERTIFICATES AND OTHER INFORMATION AS THE REGISTRAR MAY REASONABLY REQUIRE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

     Each
Note that has more than a de minimis amount of original issue discount for U.S.
Federal income tax purposes, as determined by the Issuer, shall bear a legend substantially in the
following form on the face of such Note (with any amendments thereto necessary to reflect changes
in U.S. Federal income tax laws occurring after the Issue Date) (the
“OID Legend”):

App.-13

 

 

FOR
THE PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED, THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT. YOU MAY CONTACT A
REPRESENTATIVE OF THE ISSUER AT DIAMOND RESORTS CORPORATION, 10600 WEST CHARLESTON
BOULEVARD, LAS VEGAS, NEVADA 89135, ATTENTION: TREASURER, AND THE ISSUER WILL PROVIDE YOU
WITH THE ISSUE PRICE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE AND THE YIELD
TO MATURITY OF THIS NOTE.

     (ii) Upon any sale or transfer of a Transfer Restricted Note that is a Definitive Note
pursuant to Rule 144 under the Securities Act, the Registrar shall permit the transferee thereof to
exchange such Transfer Restricted Note for a certificated Note that does not bear the legend set
forth above and rescind any restriction on the transfer of such Transfer Restricted Note, if the
transferor thereof certifies in writing to the Registrar that such sale or transfer was made in
reliance on Rule 144 (such certification to be in the form set forth on the reverse of the Note).

     (iii) After a transfer of any Initial Notes or Private Exchange Notes pursuant to and during
the period of the effectiveness of a Shelf Registration Statement with respect to such Initial
Notes or Private Exchange Notes, as the case may be, all requirements pertaining to legends on such
Initial Note or such Private Exchange Note will cease to apply, the requirements requiring any such
Initial Note or such Private Exchange Note issued to certain Holders be issued in global form will
cease to apply, and a certificated Initial Note or Private Exchange Note or an Initial Note or
Private Exchange Note in the form of an Unrestricted Global Note, in each case without Restrictive
Legends, will be available to the transferee of the Holder of such Initial Notes or Private
Exchange Notes upon exchange of such transferring Holder’s certificated Initial Note or Private
Exchange Note or directions to transfer such Holder’s interest in the Global Note, as applicable.

     (iv) Upon the consummation of a Registered Exchange Offer with respect to the Initial Notes,
all requirements pertaining to such Initial Notes that Initial Notes issued to certain Holders be
issued in global form will still apply with respect to Holders of such Initial Notes that do not
exchange their Initial Notes, and Exchange Notes in certificated form or in the form of an
Unrestricted Global Note, in each case without the Restrictive Legends, will be available to
Holders that exchange such Initial Notes in such Registered Exchange Offer.

App.-14

 

 

     (v) At the option of the Issuer and upon compliance with the following
procedures, the beneficial interests in a Restricted Global Note shall be exchanged
for beneficial interests in an Unrestricted Global Note, without the Restrictive
Legends. In order to effect such exchange, the Issuer shall provide written notice
to the Trustee instructing the Trustee to (i) direct the Depository to transfer the
specified amount of the outstanding beneficial interests in a particular Restricted
Global Note to an Unrestricted Global Note and provide the Depository with all such
information as is necessary for the Depository to appropriately credit and debit
the relevant Holder accounts and (ii) provide prior written notice to all Holders
of such exchange through the Depository or its nominee, which notice must include
the date such exchange is proposed to occur, the CUSIP number of the relevant
Restricted Global Note and the CUSIP number of the Unrestricted Global Note into
which such Holders’ beneficial interests will be exchanged. As a condition to any
such exchange pursuant to this Section 2.3(e)(v), the Trustee shall be entitled to
receive from the Issuer, and rely conclusively without any liability, upon an
Officers’ Certificate and an Opinion of Counsel to the effect that such transfer of
beneficial interests to the Unrestricted Global Note shall be effected in
compliance with the Securities Act. The Issuer may request from Holders, and
Holders shall promptly provide, such information the Issuer reasonably determines
is required in order to be able to deliver such Officers’ Certificate and Opinion
of Counsel. Upon such exchange of beneficial interests pursuant to this Section
2.3(e)(v), the Registrar shall endorse the “schedule of increases and decreases in
global note” to the relevant Global Notes and reflect on its books and records the
date of such transfer and a decrease and increase, respectively, in the principal
amount of the applicable Restricted Global Note(s) and Unrestricted Global Notes,
respectively, equal to the principal amount of beneficial interests transferred.
Following any such transfer pursuant to this Section 2.3(e)(v) of all of the
beneficial interests in a Restricted Global Note, such Restricted Global Note shall
be cancelled.

     (vi) Upon the consummation of a Private Exchange with respect to the Initial
Notes, all requirements pertaining to such Initial Notes that Initial Notes issued
to certain Holders be issued in global form will still apply with respect to
Holders of such Initial Notes that do not exchange their Initial Notes, and Private
Exchange Notes in global form with the applicable Restrictive Legends and other
applicable legends set forth in Section 2.3(e)(i) of this Appendix will be
available to Holders that exchange such Initial Notes in such Private Exchange.

          (f) Cancellation or Adjustment of Global Note. At such time as all beneficial
interests in a Global Note have either been exchanged for Definitive Notes, redeemed, purchased or
canceled, such Global Note shall be returned to the Depository for cancellation or retained and
canceled by the Trustee. At any time prior to such

App.-15

 

 

cancellation, if any beneficial interest in a Global Note is exchanged for certificated Notes,
redeemed, purchased or canceled, the principal amount of Notes represented by such Global Note
shall be reduced and an adjustment shall be made on the books and records of the Trustee (if it is
then the Notes Custodian for such Global Note) with respect to such Global Note, by the Trustee or
the Notes Custodian, to reflect such reduction.

          (g) No Obligation of the Trustee.

     (i) The Trustee shall have no responsibility or obligation to any beneficial
owner of a Global Note, a member of, or a participant in the Depository or other
Person with respect to the accuracy of the records of the Depository or its nominee
or of any participant or member thereof, with respect to any ownership interest in
the Notes or with respect to the delivery to any participant, member, beneficial
owner or other Person (other than the Depository) of any notice (including any
notice of redemption) or the payment of any amount, under or with respect to such
Notes. All notices and communications to be given to the Holders and all payments
to be made to Holders under the Notes shall be given or made only to or upon the
order of the registered Holders (which shall be the Depository or its nominee in
the case of a Global Note). The rights of beneficial owners in any Global Note
shall be exercised only through the Depository subject to the applicable rules and
procedures of the Depository. The Trustee may rely and shall be fully protected in
relying upon information furnished by the Depository with respect to its members,
participants and any beneficial owners.

     (ii) The Trustee shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed under the
Indenture or under applicable law with respect to any transfer of any interest in
any Note (including any transfers between or among Depository participants, members
or beneficial owners in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by, and
to do so if and when expressly required by, the terms of the Indenture, and to
examine the same to determine substantial compliance as to form with the express
requirements of the Indenture.

          2.4
Definitive Notes. (a) A Global Note deposited with the Depository or with the
Trustee as Notes Custodian for the Depository pursuant to Section 2.1 of this Appendix shall be
transferred to the beneficial owners thereof in the form of Definitive Notes in an aggregate
principal amount equal to the principal amount of such Global Note, in exchange for such Global
Note, only if such transfer complies with Section 2.3 of this Appendix and (i) the Depository
notifies the Issuer that it is unwilling or unable to continue as Depository for such Global Note
and the Depository fails to appoint a successor depository or if at any time such Depository ceases
to be a

App.-16

 

 

“clearing agency” registered under the Exchange Act, in either case, and a successor depository is
not appointed by the Issuer within 120 days of such notice, or (ii) the Depository so requests and
an Event of Default has occurred and is continuing or (iii) the Issuer, in its sole discretion,
notifies the Trustee in writing that it elects to cause the issuance of Definitive Notes under the
Indenture.

          (b) Any Global Note that is transferable to the beneficial owners thereof pursuant to this
Section 2.4 shall be surrendered by the Depository to the Trustee located at its principal
corporate trust office in the Borough of Manhattan, The City of New York, to be so transferred, in
whole or from time to time in part, without charge, and the Trustee shall authenticate and deliver,
upon such transfer of each portion of such Global Note, an equal aggregate principal amount of
Definitive Notes of authorized denominations. Any portion of a Global Note transferred pursuant to
this Section 2.4 shall be executed, authenticated and delivered only in denominations of $2,000
principal amount and any integral multiple of $1,000 in excess thereof and registered in such names
as the Depository shall direct. Any Definitive Note delivered in exchange for an interest in the
Transfer Restricted Note shall, except as otherwise provided by Section 2.3(e) of this Appendix, bear the applicable Restrictive Legends and the Definitive
Note Legend, unless the Issuer determines otherwise in compliance with applicable law.

          (c) Subject to the provisions of Section 2.4(b) of this Appendix, the registered Holder of a
Global Note shall be entitled to grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests through Agent Members, to take any action which a
Holder is entitled to take under this Indenture or the Notes.

          (d) In the event of the occurrence of one of the events specified in Section 2.4(a) of this
Appendix, the Issuer shall promptly make available to the Trustee a reasonable supply of Definitive
Notes in definitive, fully registered form without interest coupons. In the event that Definitive
Notes are not issued to any owner of a beneficial interest in a Global Note at a time at which such
beneficial owner has a right to receive such Definitive Notes pursuant to the Indenture, the Issuer
expressly agrees and acknowledges that (1) such beneficial owner shall have standing to pursue a
remedy pursuant to the Indenture to compel the issuance of such Definitive Notes to such beneficial
owner and to compel the registration of such Definitive Notes in the name of such beneficial owner
in the register maintained by the Registrar with respect to the Notes and (2) such beneficial owner
shall be entitled, pending such issuance and registration, to sue for payment (which payment shall
only be made following such issuance and registration) of the monetary obligation to be represented
by such Definitive Notes. The Issuer agrees that specific performance is an appropriate form for
the remedy referenced in clause (1) of the immediately preceding sentence and shall not object to
such form of such remedy.

App.-17

 

 

EXHIBIT I

to

RULE 144A/REGULATION S APPENDIX

to the Indenture, dated as of August 13, 2010, among Diamond Resorts

Corporation, a Maryland corporation, Diamond Resorts Parent, LLC, a

Nevada limited liability company, Diamond Resorts Holdings, LLC, a

Nevada limited liability company, the Subsidiary Guarantors

(as defined therein) listed on the signature pages thereto and

Wells Fargo Bank, National Association, a national

banking association, as trustee

[FORM OF FACE OF INITIAL NOTE]

[Insert the Global Note Legend, if applicable]

[Insert the Regulation S Global Note Legend, if applicable]

[Insert the Restricted Note Legend, if applicable]

[Insert the Regulation S Legend, if applicable]

[Insert the Temporary Regulation S Global Note Legend, if applicable]

[Insert the Definitive Note Legend, if applicable]

[Insert the OID Legend, if applicable]

 

 

			
	 	 	 
	 
	 	CUSIP No.                    
	 
	 	ISIN                                        
	 	 	 
	No.                    
	 	$                    

12.00% Senior Secured Notes due 2018

          Diamond Resorts Corporation, a Maryland corporation, promises to pay to
                          , or registered assigns, the principal sum of                         
Dollars (as such sum may be increased or decreased as reflected on the Schedule of Increases and
Decreases in Global Note attached hereto) on August 15, 2018.

          Interest Payment Dates: February 15 and August 15.

          Record Dates: February 1 and August 1.

          Additional provisions of this Note are set forth on the other side of this Note.

I-2

 

 

Dated:

	 	 	 	 	 

	DIAMOND RESORTS CORPORATION	 	 
	by

	 	 
 

Name:
	 	 
	 

	 	Title:	 	 

I-3

 

 

	 	 	 	 	 

	TRUSTEE’S CERTIFICATE OF AUTHENTICATION	 	 
	 
	 	 	 	 
	WELLS FARGO BANK, NATIONAL 

     ASSOCIATION,

     as Trustee, certifies that this is one of the Notes referred to in the Indenture
	 
	 	 	 	 
	by

	 	  

Authorized
Signatory
	 	 

I-4

 

 

[FORM OF REVERSE SIDE OF INITIAL NOTE] 

12.00% Senior Secured Note due 2018

1. Interest

     Diamond Resorts Corporation, a Maryland corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein
called the “Issuer”), promises to
pay interest on the principal amount of this Note at the rate per
annum shown above[; provided, however, that if a Registration Default (as defined in the Applicable Registration Rights
Agreement (as defined in paragraph 20 of this Note)) occurs, additional interest will accrue on
this Note at a rate of 0.25% per annum (increasing by an additional 0.25% per annum after each
consecutive 90-day period that occurs after the date on which such Registration Default occurs up
to a maximum additional interest rate of 1.00%) from and including the date on which any such
Registration Default shall occur to but excluding the date on which all Registration Defaults have
been cured. Within a reasonable amount of time following the occurrence of a Registration Default,
the Issuer will provide notice to the Trustee of such Registration
Default]1. The Issuer
will pay interest on the Notes semiannually in arrears on February 15 and August 15 of each year,
commencing February 15, 2011. Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from August 13, 2010. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. The Issuer will pay interest on
overdue principal at the rate borne by this Note, and it will pay interest on overdue installments
of interest at the same rate to the extent lawful.

2. Method of Payment

     The Issuer will pay interest on the Notes (except defaulted interest) to the Persons who are
registered holders of Notes at the close of business on the February 1 or August 1 next preceding
the interest payment date even if Notes are canceled after the record date and on or before the
interest payment date. Holders must surrender Notes to a Paying Agent to collect principal
payments. The Issuer will pay principal, premium, if any, and interest on the Notes in money of the
United States that at the time of payment is legal tender for payment of public and private debts.
Principal, premium, if any, and interest on the Notes will be payable at the office or agency of
the Issuer maintained for such purpose within Minneapolis, Minnesota or, at the option of the
Issuer, payment of interest may be made by check mailed to the Holders of the Notes at their
respective addresses set forth in the register of Holders of Notes;
provided, however, that
all

 

			
	1	 	To be included only if there is a Registration Rights Agreement (as defined in
the Appendix) applicable to this Note and subject to modification as necessary to reflect the
terms of such Registration Rights Agreement, if any.

I-5

 

 

payments of principal, premium and interest with respect to Notes the Holders of which have
given wire transfer instructions to the Issuer will be required to be made by wire transfer of
immediately available funds to the accounts specified by the Holders thereof. Until otherwise
designated by the Issuer, the Issuer’s office or agency in Minneapolis, MN will be the office of
the Trustee maintained for such purpose, which shall initially be 625 Marquette Avenue,
Minneapolis, MN 55402, Attention: Bondholder Communications. Payments in respect of the Notes
represented by a Global Note (including principal, premium, if any, and interest) will be made by
wire transfer of immediately available funds to the accounts specified by the Depository. The
Issuer will make all payments in respect of a certificated Note (including principal, premium and
interest) by mailing a check to the registered address of each Holder
thereof; provided, however, that payments on a certificated Note will be made by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder elects payment by
wire transfer by giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 30 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar

     Initially, the Trustee shall act as Paying Agent and Registrar. The Issuer may appoint and
change any Paying Agent or Registrar without notice. The Issuer or any Wholly Owned Restricted
Subsidiary of the Issuer incorporated or organized within the United States of America may act as
Paying Agent or Registrar.

4. Indenture, Security Documents and Intercreditor Agreement

     The
Issuer issued the Notes under an Indenture dated as of
August 13, 2010 (the “Indenture”),
among the Issuer, the Company, Intermediate Holdco, the Subsidiary Guarantors and the Trustee. The
terms of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) (the “Act”). Terms
defined in the Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Notes are subject to all such terms, and Holders are referred to the Indenture and
the Act for a statement of those terms. To the extent any provision of this Note conflicts with the
express provisions of the Indenture (including those made part of the Indenture by reference to the
Act, if any), the provisions of the Indenture shall govern and be controlling.

     The Issuer shall be entitled, subject to its compliance with Sections 4.03 and 4.12 of the
Indenture, to issue Additional Notes pursuant to Section 2.13 of the Indenture. The Initial Notes
issued on the Issue Date and any Additional Notes, Exchange Notes, Private Exchange Notes and
Replacement Notes will be treated as a single class for all purposes under the Indenture. The
Indenture contains covenants (i) that impose certain limitations on the ability of the Company and
the Restricted Subsidiaries to, among other things: incur or guarantee additional indebtedness; pay
dividends or distributions on, or redeem or repurchase, capital stock; make investments; engage in
transactions with Affiliates;

I-6

 

 

create liens on assets; transfer or sell assets; guarantee indebtedness; and restrict dividends or
other payments of subsidiaries; and (ii) that impose certain limitations on the ability of the
Company, Intermediate Holdco, the Issuer, and each Subsidiary Guarantor to consolidate, merge or
transfer all or substantially all of its assets. These covenants are subject to important
exceptions and qualifications.

     To secure the due and punctual payment of the obligations of the Issuer and the Guarantors
under the Indenture and the Notes and the Notes Guarantees, the Issuer, the Guarantors and the
Collateral Agent have entered into the Security Documents providing for the creation of specified
security interests and related matters. Each Holder, by accepting a Note, (i) irrevocably appoints
the Collateral Agent to act as its agent under the Security Documents and irrevocably authorizes
the Collateral Agent to perform the duties and exercise the rights, powers and discretions that are
specifically given to it under the Security Documents, together with any other incidental rights,
powers and discretions and to execute each document expressed to be executed by the Collateral
Agent on such Holder’s behalf and (ii) agrees to all of the terms and provisions of the Security
Documents and any Intercreditor Agreements, as the same may be amended from time to time pursuant
to the provisions of the Security Documents, any Intercreditor Agreements and the Indenture;
provided, however, that if any provisions of the Security Documents or any Intercreditor
Agreements limit, qualify or conflict with the duties imposed by the provisions of the TIA, the TIA
(other than TIA § 314(d) and TIA § 314(b) (which shall not be applicable to the Indenture unless it
is qualified under the TIA)) will control. Notwithstanding anything to the contrary in the
Indenture, no security interest or Lien is granted by the provisions of the Indenture, the Notes or
the Notes Guarantees.

5. Optional Redemption

     At any time and from time to time prior to August 15, 2014 the Notes may be redeemed at the
Issuer’s option, in whole or in part, at a redemption price equal to 100.0% of the principal amount
of the Notes redeemed, plus accrued and unpaid interest thereon, if any, to but excluding the
applicable Redemption Date, subject to the rights of Holders of Notes on the relevant record date
to receive interest due on the relevant interest payment date, plus the Applicable Premium as of
the applicable Redemption Date.

     On and after August 15, 2014, the Notes may be redeemed, at the Issuer’s option, in whole or
in part, at any time and from time to time, at the redemption prices set forth below. The Notes
shall be redeemable at the redemption prices (expressed as percentages of principal amount of the
Notes to be redeemed) set forth below plus accrued and unpaid interest thereon, if any, to but
excluding the applicable Redemption Date, subject to the right of Holders of Notes on the relevant
record date to receive interest due on the relevant interest payment date, if redeemed during the
12-month period beginning on August 15 of each of the years indicated below:

I-7

 

 

	 	 	 
	Year	 	Percentage
	2014
	 	106.000%
	2015
	 	103.000%
	2016 and thereafter
	 	100.000%

     In addition, at any time on or prior to August 15, 2013, the Issuer may on any one or more
occasions redeem up to an aggregate of 35.0% of the aggregate principal amount of the Notes at a
redemption price equal to 112.000% of the principal amount of the Notes redeemed, plus accrued and
unpaid interest thereon, if any, to but excluding the applicable Redemption Date, subject to the
rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date, with the Net Cash Proceeds of a public offering of common stock of the
Issuer; provided, however, that (i) the Issuer shall have previously made and consummated
any Public Offering Offer required to be made in connection with such public offering, (ii) at
least 65.0% in aggregate principal amount of the aggregate amount of Notes originally issued under
the Indenture (including any Additional Notes) remains outstanding immediately after the occurrence
of such redemption and (iii) such redemption occurs within 90 days of the date of the closing of
such public offering.

     If the Redemption Date with respect to a Note to be redeemed is on or after an interest record
date and on or before the related interest payment date, any accrued and unpaid interest on that
Note shall be payable to the Person that was, at the close of business on such record date, the
Holder of that Note, and no additional interest for the period to which that interest record date
relates shall be payable with respect to that Note.

6. Notice of Redemption

     Notice of redemption will be mailed (in the case held in book-entry form by electronic
transmission) at least 30 days but not more than 60 days before the applicable Redemption Date to
each Holder of Notes to be redeemed at his registered address. No Notes of $2,000 or less shall be
redeemed in part. Notes in denominations larger than $2,000 principal amount may be redeemed in
part, but only in whole multiples of $1,000. Notes called for redemption become due on the
applicable Redemption Date. On and after the applicable Redemption Date, interest ceases to accrue
on Notes or portions of them called for redemption.

7. Required Offers to Purchase Notes

     Upon a Change of Control, unless the Issuer has previously or concurrently mailed a redemption
notice with respect to all the outstanding Notes, the Issuer will make an offer to purchase all of
the Notes at a price in cash equal to 101.0% of the principal amount of the Notes to be repurchased
plus accrued and unpaid interest to but excluding the date of repurchase (subject to the right of
holders of record on the relevant record date

I-8

 

 

to receive interest due on the related interest payment date) as provided in, and subject to the
terms of, the Indenture.

     In accordance with Section 4.06 of the Indenture, the Issuer will be required to offer to
purchase Notes upon the occurrence of certain asset sale events.

     In accordance with Section 4.10 of the Indenture, within 105 days of the end of each
twelve-month period ended December 31 beginning with the twelve-month period ended December 31,
2011, the Issuer will be required to make an offer to purchase Notes in an amount equal to 50% of
the Excess Cash Flow generated during such twelve-month period, at a price equal to 101% of the
principal amount thereof, together with accrued and unpaid interest, if any, to the date of
purchase (provided that in the case of the twelve-month period ended December 31, 2011, the Excess
Cash Flow generated during such twelve-month period shall be deemed to also include the Excess Cash
Flow generated during the three-month period ended December 31, 2010) as provided in, and subject
to the terms of, the Indenture.

     In accordance with Section 4.11 of the Indenture, the Issuer will also be required to make an
offer to purchase Notes in an amount equal to 25% of the net proceeds of certain equity offerings
at the purchase prices set forth in the Indenture, together with accrued and unpaid interest, if
any, to the date of purchase as provided in, and subject to the terms of, the Indenture.

8. Guarantee

     The payment by the Issuer of the principal of, and premium and interest on, the Notes is
guaranteed on a joint and several senior secured basis by each of the Guarantors to the extent set
forth in the Indenture.

9. Denominations; Transfer; Exchange

     The Notes are in registered form without coupons in denominations of $2,000 principal amount
and whole multiples of $1,000 in excess thereof. A Holder may transfer or exchange Notes in
accordance with the Indenture. The Registrar may require a Holder to, among other things, furnish
appropriate endorsements or transfer documents and to pay any taxes and fees required by law or
permitted by the Indenture. The Issuer shall not be required to transfer or exchange, and the
Registrar need not register the transfer or exchange, of any Note selected for redemption (except,
in the case of a Note to be redeemed in part, the portion of the Note not to be redeemed) or any
Note for a period of 15 days before a selection of Notes to be redeemed or 15 days before an
interest payment date.

10. Persons Deemed Owners

     The registered Holder of this Note shall be treated as the owner of it for all purposes.

I-9

 

 

11. Unclaimed Money

     If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Issuer at its request unless an abandoned property
law designates another Person. After any such payment, Holders entitled to the money must look only
to the Issuer and not to the Trustee for payment.

12. Discharge and Defeasance

     Subject to certain conditions, the Issuer at any time shall be entitled to terminate some or
all of its obligations under the Notes and the Indenture if the Issuer deposits with the Trustee
money or Government Securities for the payment of principal and interest on the Notes to redemption
or maturity, as the case may be.

13. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (a) the Indenture, the Security
Documents, any Intercreditor Agreements and the Notes may be amended or supplemented (and waivers
granted with respect to any provisions thereof) with the written consent of the Holders of a
majority in principal amount of the Notes then outstanding and (b) any default or noncompliance
with any provision thereof may be waived with the written consent of the Holders of a majority in
principal amount of the Notes then outstanding. Subject to certain exceptions set forth in the
Indenture, without the consent of any Holder, the Issuer and the Trustee may amend or supplement
the Indenture, the Notes, any Security Document or any Intercreditor Agreement to cure any
ambiguity, omission, defect or inconsistency; to provide for uncertificated Notes in addition to or
in place of certificated Notes (provided that the uncertificated Notes are issued in registered
form for purposes of Section 163(f) of the Code); to provide for the assumption by a successor
corporation of the obligations of the Issuer or a Guarantor to Holders under the Indenture in the
case of a merger or consolidation; to make any change that would provide any additional rights or
benefits to the Holders of Notes or that does not adversely affect the legal rights under the
Indenture of any such Holder; to comply with requirements of the SEC in order to effect or maintain
the qualification of this Indenture under the Act; to evidence and provide for the acceptance of
appointment under the Indenture of a successor trustee; to add one or more Guarantors under this
Indenture; to add any additional assets to the Collateral; to release Collateral from the Lien of
the Security Documents when permitted or required by this Indenture and the Security Documents; to
conform the text of this Indenture, the Notes or any Guarantee to any provision of the section of
the Offering Circular entitled “Description of the Notes” to the extent that such provision in the
section of the Offering Circular entitled “Description of the Notes” was intended to be a verbatim
recitation of a provision of the Indenture, the Notes or such Guarantee; as necessary to conform
the Indenture to any exemptive orders under the Act received by the Issuer or any Guarantor; or to
make any amendment to the provisions of the Indenture relating to the transfer and legending of
Notes; provided, however, that (A) compliance with the Indenture as so amended would not
result in Notes being transferred in violation of the Securities Act or any other

I-10

 

 

applicable securities law and (B) such amendment does not materially and adversely affect the
rights of Holders to transfer Notes.

14. Defaults and Remedies

     Under the Indenture and subject to the terms of the Indenture, Events of Default include: (i)
default in the payment when due of interest on the Notes, which default continues for 30
consecutive days; (ii) default in payment of the principal of or premium, if any, on the Notes when
due, at Stated Maturity, upon optional redemption, upon required repurchase or otherwise; (iii)
failure by the Company, the Issuer or Intermediate Holdco to comply with other agreements in the
Indenture or the Notes, in certain cases subject to notice or lapse of time; (iv) certain
accelerations (including failure to pay within any grace period after final maturity) of other
Indebtedness of the Company if the amount accelerated (or so unpaid) exceeds $10 million; (v)
certain judgments or decrees for the payment of money in excess of $10 million; (vi) certain
defaults with respect to the Notes Guarantees; (vii) certain events of bankruptcy or insolvency
with respect to the Company, the Issuer, Intermediate Holdco or any Significant Subsidiary or any
group of Subsidiaries that, taken together, would constitute a Significant Subsidiary of the
Company and (viii) certain defaults relating to the Collateral under the Security Documents. If an
Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal
amount of the Notes may declare all the Notes to be due and payable immediately. Certain events of
bankruptcy or insolvency are Events of Default which will result in the Notes being due and payable
immediately upon the occurrence of such Events of Default.

     Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Notes unless it receives indemnity or security
satisfactory to it. Subject to certain limitations, Holders of a majority in principal amount of
the Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders notice of any continuing Default (except a Default in payment of principal or
interest) if it determines that withholding notice is in the interest of the Holders.

15. Trustee Dealings with the Issuer

     Subject to certain limitations imposed by the Act and the Indenture, the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and may become a
creditor of, or otherwise deal with, the Issuer or its Affiliates with the same rights it would
have if it were not Trustee.

16. No Recourse Against Others

     No director, officer, employee, incorporator or shareholder of the Company or the Issuer, and
no director, trustee, officer, employee, incorporator or shareholder (other than the Company or a
Restricted Subsidiary) of any Subsidiary of the Company, as such, shall have any liability for any
obligations of the Issuer or any Guarantor under the Notes, the
Indenture, any Notes Guarantee[, the Applicable Registration Rights Agreement (as

I-11

 

 

defined in paragraph 20 of this Note)]2 or the Security Documents or for any claim based
on, in respect of or by reason of such obligations or their creation. By accepting a Note, each
Holder shall waive and release all such liability. This waiver and release shall be part of the
consideration for the issue of the Notes.

17. Authentication

     This Note shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Note.

18. Abbreviations

     Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to Minors
Act).

19. CUSIP Numbers, ISINs, etc.

     The Issuer has caused [CUSIP numbers and ISINs [and Common Code numbers]] to be printed on the
Notes, and the Trustee may use [CUSIP numbers and ISINs [and Common Code numbers]] in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers, either as printed on the Notes or as contained in any notice of redemption, and reliance
may be placed only on the other identification numbers placed thereon.

20. [Holders’ Compliance with Registration Rights Agreement.

     Each Holder of a Note, by acceptance hereof, acknowledges and agrees to the provisions of the
[Registration Rights Agreement]3 (the “Applicable Registration Rights
Agreement”), including the obligations of the Holders with respect to a registration and the
indemnification of the Issuer to the extent provided therein.]4

 

			
	2	 	To be included only if there is a Registration Rights Agreement (as defined in
the Appendix) applicable to this Note.
	 
	3	 	Specify the applicable Registration Rights Agreement, including parties thereto
and date thereof.
	 
	4	 	To be included only if there is a Registration Rights Agreement (as defined in
the Appendix) applicable to this Note. If no Registration Rights Agreement applies, replace with
“[RESERVED.]”.

I-12

 

 

21. Governing Law.

     THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     The Issuer will furnish to any Holder upon written request and without charge to the
Holder a copy of the Indenture which has in it the text of this Note in larger type. Requests may
be made to:

Diamond Resorts Corporation

10600 West Charleston Boulevard

Las Vegas, Nevada 89135

Attention: Treasurer

I-13

 

 

ASSIGNMENT FORM

Diamond Resorts Corporation 12% Senior Secured Note due 2018

To assign
this Note, fill in the form below:

I or we assign and transfer this Note to:

     (Print or type assignee’s name, address and zip code)

     (Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint                     agent to transfer this Note on the books of the
Issuer. The agent may substitute another to act for him.

	 	 	 	 	 

	 

	 	Date:                    
	 	Your Signature:                                        

Sign exactly as your name appears on the other side of this Note.

In connection with any transfer of any of the Notes evidenced by this certificate occurring prior
to the expiration of the applicable period referred to in Rule 144(d) under the Securities Act
after the later of the date of original issuance of such Notes and the last date, if any, on which
such Notes were owned by the Issuer or any Affiliate of the Issuer, the undersigned confirms that
such Notes are being transferred in accordance with its terms:

CHECK ONE BOX BELOW:

	o	 	to the Issuer; or

	 	(1)	 	o pursuant to an effective registration statement under the Securities
Act of 1933; or
	 
	 	(2)	 	o inside the United States to a “qualified institutional buyer” (as
defined in Rule 144A under the Securities Act of 1933) that purchases for its own
account or for the account of a qualified institutional buyer to whom notice is given
that such transfer is being made in reliance on Rule 144A, in each case pursuant to
and in compliance with Rule 144A under the Securities Act of 1933; or
	 
	 	(3)	 	o outside the United States in an offshore transaction within
the meaning of Regulation S under the Securities Act in compliance with Rule 904
under the Securities Act of 1933; or

I-14

 

 

	 	(4)	 	o pursuant to the exemption from registration provided by Rule 144
under the Securities Act of 1933; or
	 
	 	(5)	 	o to an institutional “accredited investor” (as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act of 1933) that has furnished to
the Trustee a signed letter containing certain representations and agreements.

	 	 	Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the registered holder
thereof; provided, however, that if box (4) is checked, the Trustee shall be
entitled to require, prior to registering any such transfer of the Notes, such legal
opinions, certifications and other information as the Issuer has reasonably requested to
confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act of 1933,
such as the exemption provided by Rule 144 under such Act.

	 	 	 	 	 	 	 

	 
 

Signature

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	  

Signature
must be guaranteed

	 	 
	 	 
 

                                    Signature
	 	 

          Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership
or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as
may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Notes Exchange Act of 1934, as amended.

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

The undersigned represents and warrants that it is purchasing this Note for its own account or an
account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Issuer as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 	 	 

	Dated:

	 	 
 

	 	 
	 	  

Notice:
To be executed by an executive officer
	 	 

I-15

 

 

[TO BE ATTACHED TO GLOBAL NOTES]

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL NOTE

The following increases or decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of decrease in	 	 	Amount of increase in	 	 	Principal amount of this	 	 	Signature of authorized	 
	Date of	 	 	principal amount of this	 	 	principal amount of this	 	 	Global Note following such	 	 	officer of Trustee or Notes	 
	exchange	 	 	Global Note	 	 	Global Note	 	 	decrease or increase	 	 	Custodian	 

I-16

 

 

OPTION OF HOLDER TO ELECT PURCHASE

Diamond Resorts Corporation 12% Senior Secured Note due 2018

If you want to elect to have this Note purchased by the Issuer pursuant to Section
4.06, 4.09, 4.10 or 4.11 of the Indenture, check the box: o

If you want to elect to have only part of this Note purchased by the Issuer pursuant to
Section 4.06, 4.09, 4.10 or 4.11 of the Indenture, state the amount in principal
amount:

$                                         

	 	 	 	 	 	 	 

	Dated:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Sign exactly as your name appears

on the other side of this Note)

	 	 	 

	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

     Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Registrar in addition to, or
in substitution for, STAMP, all in accordance with the Notes Exchange Act of 1934, as
amended.

I-17

 

EXHIBIT II

to

RULE 144A/REGULATION S APPENDIX

to the Indenture, dated as of August 13, 2010, among Diamond Resorts

Corporation, a Maryland corporation, Diamond Resorts Parent, LLC, a

Nevada limited liability company, Diamond Resorts Holdings, LLC, a

Nevada limited liability company, the Subsidiary Guarantors

(as defined therein) listed on the signature pages thereto and

Wells Fargo Bank, National Association, a national

banking association, as trustee (the “Indenture”)

[FORM OF FACE OF [EXCHANGE] NOTE

[OR PRIVATE EXCHANGE NOTE][OR REPLACEMENT NOTE]]*

[Insert the Global Note Legend, if applicable]

[Insert the Definitive Note Legend, if applicable]

[Insert the OID Legend, if applicable]

 

			
	*	 	[If the Note is to be issued in global form, insert the Global Note Legend and include the
attachment from Exhibit I to the Appendix (as defined in the Indenture) captioned “[TO BE
ATTACHED TO GLOBAL NOTES — SCHEDULE OF INCREASES AND DECREASES IN GLOBAL NOTE].” If the Note is a
Private Exchange Note issued in a Private Exchange to an Initial Purchaser holding an unsold
portion of its initial allotment, insert the applicable Restrictive Legends and replace the
Assignment Form included in this Exhibit II with the Assignment Form included in such Exhibit I.]

 

 

CUSIP No.                    

ISIN                    ,                    

			
	 	 	 
	No.___
	 	$                    

12.00% Senior Secured Notes due 2018

Diamond
Resorts Corporation, a Maryland corporation, promises to pay to                                         , or registered assigns, the principal sum of           
                              
Dollars (as such sum may be increased or decreased as reflected on the Schedule of Increases
and Decreases in Global Note attached hereto) on August 15, 2018.

Interest Payment Dates: February 15 and August 15.

Record Dates: February 1 and February 15.

Additional provisions of this Note are set forth on the other side of this Note.

II-2

 

Dated:

	 	 	 	 	 
	 	DIAMOND RESORTS CORPORATION,	 
	 	    by  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

II-3

 

TRUSTEE’S CERTIFICATE OF

 AUTHENTICATION

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL 

    ASSOCIATION,

    as Trustee, certifies that this is one of the Notes 

    referred to in the Indenture

 	 
	 	    by  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

II-4

 

[FORM OF REVERSE SIDE OF [EXCHANGE] NOTE

[OR PRIVATE EXCHANGE NOTE]]

12.00% Senior Secured Notes due 2018

1. Interest

     Diamond Resorts Corporation, a Maryland corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein
called the “Issuer”), promises to
pay interest on the principal amount of this Note at the rate per
annum shown above[; provided, however, that if a Registration Default (as defined in the Applicable Registration Rights
Agreement (as defined in paragraph 20 of this Note)) occurs, additional interest will accrue on
this Note at a rate of 0.25% per annum (increasing by an additional 0.25% per annum after each
consecutive 90-day period that occurs after the date on which such Registration Default occurs up
to a maximum additional interest rate of 1.00%) from and including the date on which any such
Registration Default shall occur to but excluding the date on which all Registration Defaults have
been cured. Within a reasonable amount of time following the occurrence of a Registration Default,
the Issuer will provide notice to the Trustee of such Registration Default]5. The Issuer
will pay interest on the Notes semiannually in arrears on February 15 and August 15 of each year,
commencing February 15, 2011. Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from August 13, 2010. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. The Issuer will pay interest on
overdue principal at the rate borne by this Note, and it will pay interest on overdue installments
of interest at the same rate to the extent lawful.

2. Method of Payment

     The Issuer will pay interest on the Notes (except defaulted interest) to the Persons who are
registered holders of Notes at the close of business on the February 1 or August 1 next preceding
the interest payment date even if Notes are canceled after the record date and on or before the
interest payment date. Holders must surrender Notes to a Paying Agent to collect principal
payments. The Issuer will pay principal, premium, if any, and interest on the Notes in money of the
United States that at the time of payment is legal tender for payment of public and private debts.
Principal, premium, if any, and interest on the Notes will be payable at the office or agency of
the Issuer maintained for such purpose within Minneapolis, Minnesota or, at the option of the
Issuer, payment of

 

			
	5	 	To be included only if there is a Registration Rights Agreement (as defined in
the Appendix) applicable to this Note and subject to modification as necessary to reflect the
terms of such Registration Rights Agreement, if any.

II-5

 

interest may be made by check mailed to the Holders of the Notes at their respective addresses set
forth in the register of Holders of Notes; provided,
however, that all payments of
principal, premium and interest with respect to Notes the Holders of which have given wire transfer
instructions to the Issuer will be required to be made by wire transfer of immediately available
funds to the accounts specified by the Holders thereof. Until otherwise designated by the Issuer,
the Issuer’s office or agency in Minneapolis, MN will be the office of the Trustee maintained for
such purpose, which shall initially be 625 Marquette Avenue, Minneapolis, MN 55402, Attention:
Bondholder Communications. Payments in respect of the Notes represented by a Global Note (including
principal, premium, if any, and interest) will be made by wire transfer of immediately available
funds to the accounts specified by the Depository. The Issuer will make all payments in respect of
a certificated Note (including principal, premium and interest) by mailing a check to the
registered address of each Holder thereof; provided,
however, that payments on a
certificated Note will be made by wire transfer to a U.S. dollar account maintained by the payee
with a bank in the United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such account no later than 30
days immediately preceding the relevant due date for payment (or such other date as the Trustee may
accept in its discretion).

3. Paying Agent and Registrar

     Initially, the Trustee shall act as Paying Agent and Registrar. The Issuer may appoint and
change any Paying Agent or Registrar without notice. The Issuer or any Wholly Owned Restricted
Subsidiary of the Issuer incorporated or organized within the United States of America may act as
Paying Agent or Registrar.

4. Indenture, Security Documents and Intercreditor Agreement

     The
Issuer issued the Notes under an Indenture dated as of
August 13, 2010 (the “Indenture”),
among the Issuer, the Company, the Intermediate Holdco, the Subsidiary Guarantors and the Trustee.
The terms of the Notes include those stated in the Indenture and those made part of the Indenture
by reference to the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) (the “Act”).
Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Notes are subject to all such terms, and Holders are referred to the Indenture and
the Act for a statement of those terms. To the extent any provision of this Note conflicts with the
express provisions of the Indenture (including those made part of the Indenture by reference to the
Act, if any), the provisions of the Indenture shall govern and be controlling.

     The Issuer shall be entitled, subject to its compliance with Sections 4.03 and 4.12 of the
Indenture, to issue Additional Notes pursuant to Section 2.13 of the Indenture. The Initial Notes
issued on the Issue Date and any Additional Notes, Exchange Notes, Private Exchange Notes and
Replacement Notes will be treated as a single class for all purposes under the Indenture. The
Indenture contains covenants (i) that impose certain limitations

II-6

 

on the ability of the Company and the Restricted Subsidiaries to, among other things, incur or
guarantee additional indebtedness; pay dividends or distributions on, or redeem or repurchase,
capital stock; make investments; engage in transactions with Affiliates; create liens on assets;
transfer or sell assets; guarantee indebtedness; and restrict dividends or other payments of
subsidiaries; and (ii) that impose certain limitations on the ability of the Company, Intermediate
Holdco, the Issuer, and each Subsidiary Guarantor to consolidate, merge or transfer all or
substantially all of its assets. These covenants are subject to important exceptions and
qualifications.

     To secure the due and punctual payment of the obligations of the Issuer and the Guarantors
under the Indenture and the Notes and the Notes Guarantees, the Issuer, the Guarantors and the
Collateral Agent have entered into the Security Documents providing for the creation of specified
security interests and related matters. Each Holder, by accepting a Note, (i) irrevocably appoints
the Collateral Agent to act as its agent under the Security Documents and irrevocably authorizes
the Collateral Agent to perform the duties and exercise the rights, powers and discretions that are
specifically given to it under the Security Documents, together with any other incidental rights,
powers and discretions and to execute each document expressed to be executed by the Collateral
Agent on such Holder’s behalf and (ii) agrees to all of the terms and provisions of the Security
Documents and any Intercreditor Agreements, as the same may be amended from time to time pursuant
to the provisions of the Security Documents, any Intercreditor Agreements and the Indenture;
provided, however, that if any provisions of the Security Documents or any Intercreditor
Agreements limit, qualify or conflict with the duties imposed by the provisions of the TIA, the TIA
(other than TIA § 314(d) and TIA § 314(b) (which shall not be applicable to the Indenture unless it
is qualified under the TIA)) will control. Notwithstanding anything to the contrary in the
Indenture, no security interest or Lien is granted by the provisions of the Indenture, the Notes or
the Notes Guarantees.

5. Optional Redemption

     At any time and from time to time prior to August 15, 2014 the Notes may be redeemed at the
Issuer’s option, in whole or in part, at a redemption price equal to 100.0% of the principal amount
of the Notes redeemed, plus accrued and unpaid interest thereon, if any, to but excluding the
applicable Redemption Date, subject to the rights of Holders of Notes on the relevant record date
to receive interest due on the relevant interest payment date, plus the Applicable Premium as of
the applicable Redemption Date.

     On and after August 15, 2014, the Notes may be redeemed, at the Issuer’s option, in whole or
in part, at any time and from time to time, at the redemption prices set forth below. The Notes
shall be redeemable at the redemption prices (expressed as percentages of principal amount of the
Notes to be redeemed) set forth below plus accrued and unpaid interest thereon, if any, to but
excluding the applicable Redemption Date, subject to the right of Holders of Notes on the relevant
record date to receive interest due on the

II-7

 

relevant interest payment date, if redeemed during the 12-month period beginning on August 15 of
each of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	2014
	 	 	106.000	%
	2015
	 	 	103.000	%
	2016 and thereafter
	 	 	100.000	%

     In addition, at any time on or prior to August 15, 2013, the Issuer may on any one or
more occasions redeem up to an aggregate of 35.0% of the aggregate principal amount of the Notes at
a redemption price equal to 112.000% of the principal amount of the Notes redeemed, plus accrued
and unpaid interest thereon, if any, to but excluding the applicable Redemption Date, subject to
the rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date, with the Net Cash Proceeds of a public offering of common stock of the
Issuer; provided, however, that (i) the Issuer shall have previously made and consummated any
Public Offering Offer required to be made in connection with such public offering, (ii) at least
65.0% in aggregate principal amount of the aggregate amount of Notes originally issued under the
Indenture (including any Additional Notes) remains outstanding immediately after the occurrence of
such redemption and (iii) such redemption occurs within 90 days of the date of the closing of such
public offering.

     If the Redemption Date with respect to a Note to be redeemed is on or after an interest record
date and on or before the related interest payment date, any accrued and unpaid interest on that
Note shall be payable to the Person that was, at the close of business on such record date, the
Holder of that Note, and no additional interest for the period to which that interest record date
relates shall be payable with respect to that Note.

6. Notice of Redemption

     Notice of redemption will be mailed (in the case held in book-entry form by electronic
transmission) at least 30 days but not more than 60 days before the applicable Redemption Date to
each Holder of Notes to be redeemed at his registered address. No Notes of $2,000 or less shall be
redeemed in part. Notes in denominations larger than $2,000 principal amount may be redeemed in
part, but only in whole multiples of $1,000. Notes called for redemption become due on the
applicable Redemption Date. On and after the applicable Redemption Date, interest ceases to accrue
on Notes or portions of them called for redemption.

7. Required Offers to Purchase Notes

     Upon a Change of Control, unless the Issuer has previously or concurrently mailed a redemption
notice with respect to all the outstanding Notes, the Issuer will make

II-8

 

an offer to purchase all of the Notes at a price in cash equal to 101.0% of the principal amount of
the Notes to be repurchased plus accrued and unpaid interest to but excluding the date of
repurchase (subject to the right of holders of record on the relevant record date to receive
interest due on the related interest payment date) as provided in, and subject to the terms of, the
Indenture.

     In accordance with Section 4.06 of the Indenture, the Issuer will be required to offer to
purchase Notes upon the occurrence of certain asset sale events.

     In accordance with Section 4.10 of the Indenture, within 105 days of the end of each
twelve-month period ended December 31 beginning with the twelve-month period ended December 31,
2011, the Issuer will be required to make an offer to purchase Notes in an amount equal to 50% of
the Excess Cash Flow generated during such twelve-month period, at a price equal to 101% of the
principal amount thereof, together with accrued and unpaid interest, if any, to the date of
purchase (provided that in the case of the twelve-month period ended December 31, 2011, the Excess
Cash Flow generated during such twelve-month period shall be deemed to also include the Excess Cash
Flow generated during the three-month period ended December 31, 2010) as provided in, and subject
to the terms of, the Indenture.

     In accordance with Section 4.11 of the Indenture, the Issuer will also be required to make an
offer to purchase Notes in an amount equal to 25% of the net proceeds of certain equity offerings
at the purchase prices set forth in the Indenture, together with accrued and unpaid interest, if
any, to the date of purchase as provided in, and subject to the terms of, the Indenture.

8. Guarantee

     The payment by the Issuer of the principal of, and premium and interest on, the Notes is
guaranteed on a joint and several senior secured basis by each of the Guarantors to the extent set
forth in the Indenture.

9.
Denominations; Transfer; Exchange

     The Notes are in registered form without coupons in denominations of $2,000 principal amount
and whole multiples of $1,000 in excess thereof. A Holder may transfer or exchange Notes in
accordance with the Indenture. The Registrar may require a Holder to, among other things, furnish
appropriate endorsements or transfer documents and to pay any taxes and fees required by law or
permitted by the Indenture. The Issuer shall not be required to transfer or exchange, and the
Registrar need not register the transfer or exchange, of any Note selected for redemption (except,
in the case of a Note to be redeemed in part, the portion of the Note not to be redeemed) or any
Note for a period of 15 days before a selection of Notes to be redeemed or 15 days before an
interest payment date.

II-9

 

10. Persons Deemed Owners

     The registered Holder of this Note shall be treated as the owner of it for all purposes.

11. Unclaimed Money

     If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Issuer at its request unless an abandoned property
law designates another Person. After any such payment, Holders entitled to the money must look only
to the Issuer and not to the Trustee for payment.

12. Discharge and Defeasance

     Subject to certain conditions, the Issuer at any time shall be entitled to terminate some or
all of its obligations under the Notes and the Indenture if the Issuer deposits with the Trustee
money or Government Securities for the payment of principal and interest on the Notes to redemption
or maturity, as the case may be.

13. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (a) the Indenture, the Security
Documents, any Intercreditor Agreements and the Notes may be amended or supplemented (and waivers
granted with respect to any provisions thereof) with the written consent of the Holders of a
majority in principal amount of the Notes then outstanding and (b) any default or noncompliance
with any provision thereof may be waived with the written consent of the Holders of a majority in
principal amount of the Notes then outstanding. Subject to certain exceptions set forth in the
Indenture, without the consent of any Holder, the Issuer and the Trustee may amend or supplement
the Indenture, the Notes, any Security Document or any Intercreditor Agreement to cure any
ambiguity, omission, defect or inconsistency; to provide for uncertificated Notes in addition to or
in place of certificated Notes (provided that the uncertificated Notes are issued in registered
form for purposes of Section 163(f) of the Code); to provide for the assumption by a successor
corporation of the obligations of the Issuer or a Guarantor to Holders under the Indenture in the
case of a merger or consolidation; to make any change that would provide any additional rights or
benefits to the Holders of Notes or that does not adversely affect the legal rights under the
Indenture of any such Holder; to comply with requirements of the SEC in order to effect or maintain
the qualification of this Indenture under the Act; to evidence and provide for the acceptance of
appointment under the Indenture of a successor trustee; to add one or more Guarantors under this
Indenture; to add any additional assets to the Collateral; to release Collateral from the Lien of
the Security Documents when permitted or required by this Indenture and the Security Documents; to
conform the text of this Indenture, the Notes or any Guarantee to any provision of the section of
the Offering Circular entitled “Description of the Notes” to the extent that such provision in the
section of the Offering Circular entitled “Description of the Notes” was intended to be a verbatim
recitation of a provision of the

II-10

 

Indenture, the Notes or such Guarantee; as necessary to conform the Indenture to any exemptive
orders under the Act received by the Issuer or any Guarantor; or to make any amendment to the
provisions of the Indenture relating to the transfer and legending of Notes; provided,
however, that (A) compliance with the Indenture as so amended would not result in Notes being
transferred in violation of the Securities Act or any other applicable securities law and (B) such
amendment does not materially and adversely affect the rights of Holders to transfer Notes.

14. Defaults and Remedies

     Under the Indenture and subject to the terms of the Indenture, Events of Default include: (i)
default in the payment when due of interest on the Notes, which default continues for 30
consecutive days; (ii) default in payment of the principal of or premium, if any, on the Notes when
due, at Stated Maturity, upon optional redemption, upon required repurchase or otherwise; (iii)
failure by the Company, the Issuer or Intermediate Holdco to comply with other agreements in the
Indenture or the Notes, in certain cases subject to notice or lapse of time; (iv) certain
accelerations (including failure to pay within any grace period after final maturity) of other
Indebtedness of the Company if the amount accelerated (or so unpaid) exceeds $10 million; (v)
certain judgments or decrees for the payment of money in excess of $10 million; (vi) certain
defaults with respect to the Notes Guarantees; (vii) certain events of bankruptcy or insolvency
with respect to the Company, the Issuer, Intermediate Holdco or any Significant Subsidiary or any
group of Subsidiaries that, taken together, would constitute a Significant Subsidiary of the
Company and (viii) certain defaults relating to the Collateral under the Security Documents. If an
Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal
amount of the Notes may declare all the Notes to be due and payable immediately. Certain events of
bankruptcy or insolvency are Events of Default which will result in the Notes being due and payable
immediately upon the occurrence of such Events of Default.

     Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Notes unless it receives indemnity or security
satisfactory to it. Subject to certain limitations, Holders of a majority in principal amount of
the Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders notice of any continuing Default (except a Default in payment of principal or
interest) if it determines that withholding notice is in the interest of the Holders.

15. Trustee Dealings with the Issuer

     Subject to certain limitations imposed by the Act and the Indenture, the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and may become a
creditor of, or otherwise deal with, the Issuer or its Affiliates with the same rights it would
have if it were not Trustee.

II-11

 

16. No Recourse Against Others

     No director, officer, employee, incorporator or shareholder of the Company or the Issuer, and
no director, trustee, officer, employee, incorporator or shareholder (other than the Company or a
Restricted Subsidiary) of any Subsidiary of the Company, as such, shall have any liability for any
obligations of the Issuer or any Guarantor under the Notes, the Indenture, any Notes Guarantee[,
the Applicable Registration Rights Agreement (as defined in paragraph 20 of this Note)]6
or the Security Documents or for any claim based on, in respect of or by reason of such obligations
or their creation. By accepting a Note, each Holder shall waive and release all such liability.
This waiver and release shall be part of the consideration for the issue of the Notes.

17. Authentication

     This Note shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Note.

18. Abbreviations

     Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to Minors
Act).

19. CUSIP Numbers, ISINs, etc.

     The Issuer has caused [CUSIP numbers and ISINs [and Common Code numbers]] to be printed on the
Notes, and the Trustee may use [CUSIP numbers and ISINs [and Common Code numbers]] in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers, either as printed on the Notes or as contained in any notice of redemption, and reliance
may be placed only on the other identification numbers placed thereon.

 

			
	6	 	To be included only if there is a Registration Rights Agreement (as defined in
the Appendix) applicable to this Note.

II-12

 

20. [Holders’ Compliance with Registration Rights Agreement.

     Each Holder of a Note, by acceptance hereof, acknowledges and agrees to the provisions of the
[Registration Rights Agreement]7 (the “Applicable Registration Rights
 Agreement”), including the obligations of the Holders with respect to a registration and the
indemnification of the Issuer to the extent provided therein.]8

21. Governing Law.

     THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     The Issuer will furnish to any Holder upon written request and without charge to the
Holder a copy of the Indenture which has in it the text of this Note in larger type. Requests may
be made to:

Diamond Resorts Corporation

10600 West Charleston Boulevard

Las Vegas, Nevada 89135

Attention: Treasurer

 

			
	7	 	Specify the applicable Registration Rights Agreement, including parties thereto
and date thereof.
	 
	8	 	To be included only if there is a Registration Rights Agreement (as defined in
the Appendix) applicable to this Note. If no Registration Rights Agreement applies, replace
with “[RESERVED.]”.

II-13

 

ASSIGNMENT FORM

Diamond Resorts Corporation 12% Senior Secured Note due 2018

To assign this Note, fill in the form below:

I or we assign and transfer this Note to:

	 	 	                                                                                

	 
	 	 	(Print or type assignee’s name, address and zip code)
	 
	 	 	                                                                                

	 
	 	 	(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint       agent to transfer this Note on the books of the Issuer. The agent may
substitute another to act for him.

	 	 	 	 	 	 	 

	Date:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 

Sign exactly as your name appears on the other side of this Note.

II-14

 

OPTION OF HOLDER TO ELECT PURCHASE

Diamond Resorts Corporation 12% Senior Secured Note due 2018

If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.06, 4.09,
4.10 or 4.11 of the Indenture, check the box: o

If you want to elect to have only part of this Note purchased by the Issuer pursuant to Section
4.06, 4.09, 4.10 or 4.11 of the Indenture, state the amount in principal amount:

$                                        

	 	 	 	 	 	 	 

	Dated:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Sign exactly as your name appears

on the other side of this Note)

	 	 	 

	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

     Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Notes Exchange Act of 1934, as amended.

II-15

 

EXHIBIT III

to

RULE 144A/REGULATION S APPENDIX

to the Indenture, dated as of August 13, 2010, among Diamond Resorts

Corporation, a Maryland corporation, Diamond Resorts Parent, LLC, a

Nevada limited liability company, Diamond Resorts Holdings, LLC, a

Nevada limited liability company, the Subsidiary Guarantors

(as defined therein) listed on the signature pages thereto and

Wells Fargo Bank, National Association, a national

banking association, as trustee

Form of

Transferee Letter of Representation

Diamond Resorts Corporation 12% Senior Secured Note due 2018

Diamond Resorts Corporation

In care of

Wells Fargo Bank, National Association

Corporate Trust Services

707 Wilshire Boulevard, 17th Floor

Los Angeles, CA 90017

Attention: Maddy Hall

Facsimile: (213) 614-3355

Ladies and Gentlemen:

     This certificate is delivered to request a transfer of $[      ] principal amount of the
12.00% Senior Secured Notes due 2018 (the “Notes”) of Diamond Resorts Corporation (the “Issuer”).

     Upon transfer, the Notes would be registered in the name of the new beneficial owner as
follows:

Name:                                         

Address:                                         

Taxpayer ID Number:                     

     The undersigned represents and warrants to you that:

     1. We are an institutional “accredited investor” (as defined in Rule 501(a)(l), (2), (3) or
(7) under the Securities Act of 1933, as amended (the “Securities Act”)), purchasing for our own
account or for the account of such an institutional “accredited investor” at least $250,000
principal amount of the Notes, and we are acquiring the Notes not with a view to, or for offer or
sale in connection with, any distribution in violation of the Securities Act. We have such
knowledge and experience in financial and business

 

 

matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we
invest in or purchase securities similar to the Notes in the normal course of our business. We, and
any accounts for which we are acting, are each able to bear the economic risk of our or its
investment.

     2. We understand that the Notes have not been registered under the Securities Act and, unless
so registered, may not be sold except as permitted in the following sentence. We agree on our own
behalf and on behalf of any investor account for which we are purchasing Notes to offer, sell or
otherwise transfer such Notes prior to the date that is two years after the later of the date of
original issue and the last date on which the Issuer or any affiliate of the Issuer was the owner
of such Notes (or any predecessor thereto) (the “Resale Restriction Termination Date”) only
(i) to the Issuer, (ii) in the United States to a person whom the seller reasonably believes is a
qualified institutional buyer in a transaction meeting the requirements of Rule 144A, (iii) to an
institutional “accredited investor” within the meaning of Rule 501(a)(l), (2), (3) or (7) under the
Securities Act that is an institutional accredited investor purchasing for its own account or for
the account of an institutional accredited investor, in each case in a minimum principal amount of
the Notes of $250,000, (iv) outside the United States in a transaction complying with the
provisions of Rule 904 under the Securities Act, (v) pursuant to an exemption from registration
under the Securities Act provided by Rule 144 (if available) or (vi) pursuant to an effective
registration statement under the Securities Act, in each of cases (i) through (vi) subject to any
requirement of law that the disposition of our property or the property of such investor account or
accounts be at all times within our or their control and in compliance with any applicable state
securities laws. The foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the Notes is proposed to be made
pursuant to clause (iii) above prior to the Resale Restriction Termination Date, the transferor
shall deliver a letter from the transferee substantially in the form of this letter to the Issuer
and the Trustee, which shall provide, among other things, that the transferee is an institutional
“accredited investor” within the meaning of Rule 501(a)(l), (2), (3) or (7) under the Securities
Act and that it is acquiring such Notes for investment purposes and not for distribution in
violation of the Securities Act. Each purchaser acknowledges that the Issuer and the Trustee
reserve the right prior to the offer, sale or other transfer prior to the Resale Restriction
Termination Date of the Notes pursuant to clause (iii), (iv) or (v) above to require the delivery
of an opinion of counsel, certifications or other information satisfactory to the Issuer and the
Trustee.

TRANSFEREE:                      ,

by:                     

III-2

 

EXHIBIT A

 

[FORM OF]

PARI PASSU INTERCREDITOR AGREEMENT

dated as of [     ],

among

DIAMOND RESORTS CORPORATION,

the other GRANTORS party hereto,

[     ],

in its capacity as the Collateral Agent and

the Authorized Representative for the Indenture Secured Parties,

[     ],

as the Initial Additional Authorized Representative,

and

each ADDITIONAL AUTHORIZED REPRESENTATIVE from time to time party

hereto

 

 

 

     PARI PASSU INTERCREDITOR AGREEMENT dated as
of [ ] (as amended, supplemented or otherwise modified from
time to time, this “Agreement”), among DIAMOND RESORTS
CORPORATION, a Maryland corporation (the “Issuer”), the other
GRANTORS (as defined below) party hereto, Wells Fargo Bank,
National Association, as collateral agent for the Secured Parties (as
defined below) (in such capacity, the “Collateral Agent”) and as
the Authorized Representative for the Indenture Secured Parties in
its capacity as trustee under the Indenture (as defined below) (in
such capacity, the “Trustee”), [      ], as the Authorized
Representative for the Initial Additional Secured Parties (in such
capacity, the “Initial Additional Authorized Representative”) and
each ADDITIONAL AUTHORIZED REPRESENTATIVE from time to time party hereto,
as the Authorized Representative for any Secured Parties of any other
Class.

          In consideration of the mutual agreements herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Collateral Agent,
the Trustee, for itself and on behalf of its Related Secured Parties, the Initial Additional
Authorized Representative, for itself and on behalf of its Related Secured Parties, and each
Additional Authorized Representative, for itself and on behalf of its Related Secured Parties,
agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. Certain Defined Terms. Capitalized terms used but not otherwise defined
herein have the meanings assigned to such terms in the Indenture referred to below. As used in
this Agreement, the following terms have the meanings specified below:

          “Additional Authorized Representative” has the meaning assigned to such term in
Article VI.

          “Additional Authorized Representative Joinder Agreement” means a supplement to this
Agreement substantially in the form of Exhibit I, appropriately completed.

          “Additional First Lien Documents” means the indentures or other agreements under
which Additional First Lien Obligations of any Class are issued or incurred and all other notes,
instruments, agreements and other documents evidencing or governing Additional First Lien
Obligations of such Class or providing any guarantee, Lien or other right in respect thereof.

A-2

 

          “Additional First Lien Obligations” means all obligations of the Issuer and the other
Grantors that shall have been designated as such pursuant to Article VI.

          “Additional Secured Parties” means the holders of any Additional First Lien
Obligations.

          “Agreement” has the meaning assigned to such term in the preamble hereto.

          “Applicable Authorized Representative” means [ ] until such time as [ ] ceases to
represent the largest principal amount outstanding of any Class of First Lien Obligations (a
“Larger Holder Event”). Following a Larger Holder Event, the Authorized Representative for the
Class representing the largest principal amount of outstanding First Lien Obligations shall become
the Applicable Authorized Representative. The Applicable Authorized Representative will remain as
such until the earlier of (1) the occurrence of a subsequent Larger Holder Event and (2) the
Non-Controlling Authorized Representative Enforcement Date, and after such earlier date the
Applicable Authorized Representative shall be the Major Non-Controlling Authorized Representative.

          “Authorized Representatives” means the Trustee, the Initial Additional Authorized
Representative and each Additional Authorized Representative.

          “Bankruptcy Case” has the meaning assigned to such term in Section 2.06.

          “Bankruptcy Code” means Title 11 of the United States Code.

          “Bankruptcy Law” means the Bankruptcy Code and any similar Federal, state or foreign
law for the relief of debtors.

          “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to remain closed.

          “Class”, when used in reference to (a) any First Lien Obligations, refers to whether such
First Lien Obligations are the Noteholder Claims, the Initial Additional First Lien Obligations or
the Additional First Lien Obligations of any Series, (b) any Authorized Representative, refers to
whether such Authorized Representative is the Trustee, the Initial Additional Authorized
Representative or the Additional Authorized Representative with respect to the Additional First
Lien Obligations of any Series, (c) any Secured Parties, refers to whether such Secured Parties
are the Indenture Secured Parties, the Initial Additional Secured Parties or the Additional
Secured Parties, and (d) any First Lien Credit Documents, refers to whether such First Lien Credit
Documents are the Noteholder Documents, the Initial Additional First Lien Documents or the
Additional First Lien Documents with respect to Additional First Lien Obligations of any Series.

A-3

 

          “Collateral” means all assets of the Grantors now or hereafter subject to a Lien created
pursuant to any First Lien Security Document to secure any First Lien Obligations.

          “Collateral Agent” has the meaning assigned to such term in the preamble hereto.

          “Company” means Diamond Resorts Parent, LLC, a Nevada limited liability company.

          “Controlling Secured Parties” means, at any time with respect to any Shared
Collateral, the Secured Parties of the same Class as the Authorized Representative that is the
Applicable Authorized Representative with respect to such Shared Collateral at such time.

          “Default” means a “Default” (or a similar event, however denominated) as defined in any First
Lien Credit Document.

          “DIP Financing” has the meaning assigned to such term in Section 2.06.

          “DIP Financing Liens” has the meaning assigned to such term in Section 2.06.

          “DIP Lenders” has the meaning assigned to such term in Section 2.06.

          “Discharge” means, with respect to any Shared Collateral and First Lien Obligations of any
Class, the date on which First Lien Obligations of such Class are no longer secured by Liens on
such Shared Collateral. The term “Discharged” shall have a corresponding meaning.

          “Event of Default” means an “Event of Default” (or a similar event, however
denominated) as defined in any First Lien Credit Document.

          “First Lien Credit Documents” means, collectively, (a) the Noteholder Documents, (b)
the Initial Additional First Lien Documents and (c) the Additional First Lien Documents.

          “First Lien Obligations” means (a) all the Noteholder Claims, (b) all the Initial
Additional First Lien Obligations and (c) all the Additional First Lien Obligations.

          “First Lien Security Documents” means the Security Documents (as defined in the
Indenture) and each other agreement entered into in favor of the Collateral Agent for the purpose
of securing First Lien Obligations of any Class.

          “Grantor Joinder Agreement” means a supplement to this Agreement substantially in
the form of Exhibit II, appropriately completed.

A-4

 

          “Grantors” means, at any time, the Issuer, the Company and each of their respective
Subsidiaries that, at such time, has granted a security interest in any of its assets pursuant to
any Security Document to secure any First Lien Obligations of any Class. The Persons that are
Grantors on the date hereof are set forth on Schedule I.

          “Impairment” has the meaning assigned to such term in Section 2.02.

          “Indenture” means the Indenture dated as of August 13, 2010 between the Issuer, the Trustee,
and the other parties thereto.

          “Indenture Secured Parties” means the Persons holding Noteholder Claims, including
the Collateral Agent and the Trustee.

          “Initial Additional Authorized Representative” has the meaning assigned to such term
in the preamble hereto.

          “Initial Additional First Lien Documents” means that certain [ ] dated as of [ ],
among the Issuer, [the guarantors identified therein] and [ ], and all other instruments,
agreements and other documents evidencing or governing Initial Additional First Lien Obligations
or providing any guarantee, Lien or other right in respect thereof.

          “Initial Additional First Lien Obligations” has the meaning assigned to the term [ ]
in the Initial Additional First Lien Documents.

          “Initial Additional Secured Parties” means the holders of any Initial Additional
First Lien Obligations.

          “Insolvency or Liquidation Proceeding” means:

     (a) any case commenced by or against any Grantor under any Bankruptcy
Law, any other proceeding for the reorganization, recapitalization or adjustment
or marshalling of the assets or liabilities of any Grantor, any receivership or
assignment for the benefit of creditors relating to any Grantor or any similar case
or proceeding relative to any Grantor or its creditors, as such, in each case
whether or not voluntary;

     (b) any liquidation, dissolution, marshalling of assets or liabilities or other
winding up of or relating to any Grantor, in each case whether or not voluntary
and whether or not involving bankruptcy or insolvency; or

     (c) any other proceeding of any type or nature in which substantially all
claims of creditors of any Grantor are determined and any payment or distribution
is or may be made on account of such claims.

          “Intervening Creditor” has the meaning assigned to such term in Section 2.02.

A-5

 

          “Intervening Lien” has the meaning assigned to such term in Section 2.02.

          “Major Non-Controlling Authorized Representative” means, with respect to any Shared
Collateral, the Authorized Representative of the same Class as the Class of the First Lien
Obligations (other than the First Lien Obligations of the same Class as the Class of the
Controlling Secured Parties with respect to such Shared Collateral) secured by valid and perfected
Liens on such Shared Collateral the aggregate amount of which exceeds the aggregate amount of First
Lien Obligations of any other Class (other than the First Lien Obligations of the same Class as the
Class of the Controlling Secured Parties with respect to such Shared Collateral) secured by valid
and perfected Liens on such Shared Collateral.

          “Non-Controlling Authorized Representative” means, at any time with respect to any
Shared Collateral, any Authorized Representative that is not the Applicable Authorized
Representative at such time with respect to such Shared Collateral.

          “Non-Controlling Authorized Representative Enforcement Date” means, with respect to
any Non-Controlling Authorized Representative in respect of any Shared Collateral, the date that
is 90 days (at the conclusion of which 90-day period such Non-Controlling Authorized
Representative was the Major Non-Controlling Authorized Representative with respect to such Shared
Collateral) after the occurrence of both (a) an Event of Default (under and as defined in the
Additional First Lien Document under which such Non-Controlling Authorized Representative is the
Authorized Representative) and (b)the Collateral Agent’s and each other Authorized
Representative’s receipt of written notice from such Non-Controlling Authorized Representative
certifying that (i) such Non-Controlling Authorized Representative is the Major Non-Controlling
Authorized Representative with respect to such Shared Collateral and that an Event of Default
(under and as defined in the Additional First Lien Document under which such Non-Controlling
Authorized Representative is the Authorized Representative) has occurred and is continuing and
(ii) the First Lien Obligations of the Class with respect to which such Non-Controlling Authorized
Representative is the Authorized Representative are currently due and payable in full (whether as
a result of acceleration thereof or otherwise) in accordance with the terms of the Additional
First Lien Documents of such Class; provided that the Non-Controlling Authorized
Representative Enforcement Date shall be stayed and shall not occur (and shall be deemed not to
have occurred for all purposes hereof) with respect to any Shared Collateral (A) at any time the
Collateral Agent has commenced and is diligently pursuing any enforcement action with respect to
such Shared Collateral (or the Trustee shall have instructed the Collateral Agent to do the same)
or (B) at any time the Grantor that has granted a security interest in such Shared Collateral is
then a debtor under or with respect to (or otherwise subject to) any Insolvency or Liquidation
Proceeding.

          “Non-Controlling Secured Parties” means, at any time with respect to any Shared
Collateral, the Secured Parties that are not Controlling Secured Parties at such time with
respect to such Shared Collateral.

A-6

 

          “Noteholder Claims” shall mean all Obligations in respect of the Notes or arising
under the Noteholder Documents or any of them, including all fees and expenses of the Collateral
Agent and the Trustee thereunder.

          “Noteholder Collateral” shall mean all of the assets of any Grantor, whether real,
personal or mixed, with respect to which a Lien is granted as security for any Noteholder Claim.

          “Noteholder Collateral Agreement” shall mean the Security Agreement dated as of
August 13, 2010, between the Issuer and the Collateral Agent in respect of the Indenture.

          “Noteholder Collateral Documents” shall mean the Noteholder Security Agreement and
any other document or instrument pursuant to which a Lien is granted by any Grantor to secure any
Noteholder Claims or under which rights or remedies with respect to any such Lien are governed.

          “Noteholder Documents” shall mean (a) the Indenture, the Notes and the Noteholder
Collateral Documents and (b) any other related document or instrument executed and delivered
pursuant to any Noteholder Document described in clause (a) above evidencing or governing any
Obligations thereunder.

          “Notes” shall mean any notes issued under the Indenture.

          “Person” means any individual, corporation, partnership, limited liability company, joint
venture, association, joint-stock company, trust, unincorporated organization, government or any
agency or political subdivision thereof or any other entity.

          “Possessory Collateral” means any Shared Collateral in the possession of the
Collateral Agent (or its agents or bailees), to the extent that possession thereof perfects a Lien
thereon under the Uniform Commercial Code of any jurisdiction.

          “Proceeds” has the meaning assigned to such term in Section 2.01(b).

          “Refinance” means, in respect of any Indebtedness, to refinance, extend, renew, refund,
repay, prepay, purchase, redeem, defease or retire, or to issue other Indebtedness in exchange or
replacement for, such Indebtedness, in whole or in part.
“Refinanced” and “Refinancing” shall have
correlative meanings.

          “Related Secured Parties” means, with respect to the Authorized Representative of any
Class, the Secured Parties of such Class.

          “Secured
Parties” means (a) the Indenture Secured Parties, (b) the Initial Additional Secured
Parties and (c) the Additional Secured Parties.

A-7

 

          “Series”, when used in reference to Additional First Lien Obligations, refers to such
Additional First Lien Obligations as shall have been issued or incurred pursuant to the same
indentures or other agreements and with respect to which the same Person acts as the Authorized
Representative.

          “Shared Collateral” means, at any time, Collateral on which the Collateral Agent
shall have at such time a valid and perfected Lien for the benefit of’Secured Parties of any two
or more Classes. If First Lien Obligations of more than two Classes are outstanding at any time,
then any Collateral shall constitute Shared Collateral with respect to First Lien Obligations or
Secured Parties of any Class only if the Collateral Agent has at such time a valid and perfected
Lien on such Collateral securing First Lien Obligations of such Class for the benefit of the
Secured Parties of such Class.

          “Trustee” has the meaning assigned to such term in the preamble hereto.

          “Uniform Commercial Code” means the Uniform Commercial Code as in effect from time to
time in the applicable jurisdiction.

          SECTION 1.02. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise, (a) any definition of or reference to any agreement, instrument, other
document, statute or regulation herein shall be construed as referring to such agreement,
instrument, other document, statute or regulation as from time to time amended, supplemented or
otherwise modified, (b) any reference herein to any Person shall be construed to include such
Person’s successors and assigns, but shall not be deemed to include the subsidiaries of such
Person unless express reference is made to such subsidiaries, (c) the words “herein”, “hereof and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (d) all references herein to Articles,
Sections and Exhibits shall be construed to refer to Articles and Sections of, and Exhibits to,
this Agreement and (e) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

          SECTION
1.03. Concerning the Collateral Agent and the Authorized Representatives.
(a) Each acknowledgement, agreement, consent and waiver (whether express or implied) in this
Agreement made by the Collateral Agent and the Trustee, whether on behalf of itself or, in the
case of the Trustee, on behalf of any other Indenture Secured Party, is made in reliance on the
authority granted to the Collateral Agent and the Trustee pursuant to the authorization thereof
under the Indenture. It is understood and agreed that the Collateral Agent and the Trustee shall
not be responsible for or have any duty to ascertain or inquire into whether any other Indenture
Secured Party is in

A-8

 

compliance with the terms of this Agreement, and no party hereto or any other Secured Party shall
have any right of action whatsoever against the Collateral Agent or the Trustee for any failure of
any other Indenture Secured Party to comply with the terms hereof or for any other Indenture
Secured Party taking any action contrary to the terms hereof.

          (b) Each acknowledgement, agreement, consent and waiver (whether express or implied) in this
Agreement made by the Authorized Representative of any Class not referred to in paragraph (a)
above, whether on behalf of itself or any of its Related Secured Parties, is made in reliance on
the authority granted to such Authorized Representative pursuant to the authorization thereof
under the First Lien Credit Documents of such Class. It is understood and agreed that any such
Authorized Representative shall not be responsible for or have any duty to ascertain or inquire
into whether any of its Related Secured Parties is in compliance with the terms of this Agreement,
and no party hereto or any other Secured Party shall have any right of action whatsoever against
such Authorized Representative for any failure of any of its Related Secured Parties to comply
with the terms hereof or for any of its Related Secured Parties taking any action contrary to the
terms hereof.

ARTICLE II

 Priorities and Agreements with Respect to Shared Collateral

          SECTION
2.01. Equal Priority. (a) Notwithstanding the date, time, method, manner or
order of grant, attachment or perfection of any Lien on any Shared Collateral securing First Lien
Obligations of any Class, and notwithstanding any provision of the Uniform Commercial Code of any
jurisdiction, any other applicable law or any First Lien Credit Document, or any other
circumstance whatsoever (but, in each case, subject to Section 2.02), each Authorized
Representative, for itself and on behalf of its Related Secured Parties, agrees that valid and
perfected Liens on any Shared Collateral securing First Lien Obligations of any Class shall be of
equal priority with valid and perfected Liens on such Shared Collateral securing First Lien
Obligations of any other Class.

          (b) Each Authorized Representative, for itself and on behalf of its Related Secured Parties,
agrees that, notwithstanding any provision of any First Lien Credit Document to the contrary (but
subject to Section 2.02), if (i) an Event of Default shall have occurred and is continuing and
such Authorized Representative or any of its Related Secured Parties is taking action to enforce
rights or exercise remedies in respect of any Shared Collateral, (ii) any distribution is made in
respect of any Shared Collateral in any Insolvency or Liquidation Proceeding or (iii) such
Authorized Representative or any of its Related Secured Parties receives any payment with respect
to any Shared Collateral pursuant to any intercreditor agreement (other than this Agreement), then
the proceeds of any sale, collection or other liquidation of any Shared Collateral obtained by
such Authorized Representative or any of its Related Secured Parties on account of such
enforcement of rights or exercise of remedies, and any such distributions or payments

A-9

 

received by such Authorized Representative or any of its Related Secured Parties (all such
proceeds, distributions and payments being collectively referred to
as “Proceeds”), shall be
applied as follows:

     (1) FIRST, to the payment of all amounts owing to the Collateral Agent
and the Authorized Representatives (in each case in their capacities as such)
pursuant to the terms of any First Lien Credit Document, including all costs and
expenses incurred by the Collateral Agent and the Authorized Representatives in
connection with such sale, collection or other liquidation, or such other
enforcement of rights or exercise of remedies (including all court costs and the
fees and expenses of their agents and legal counsel), the repayment of all
advances made by the Collateral Agent and the Authorized Representatives under
any First Lien Credit Document, any other costs or expenses incurred in
connection with the exercise of any right or remedy hereunder or under any other
First Lien Credit Document, and all other fees, indemnities and other amounts
owing or reimbursable to the Collateral Agent and the Authorized Representatives
under any First Lien Credit Document in their capacities as such;

     (2) SECOND, to the payment in full of the First Lien Obligations of each
Class secured by a valid and perfected Lien on such Shared Collateral at the time
due and payable (the amounts so applied to be distributed ratably in accordance
with the amounts of the outstanding First Lien Obligations of each such Class on
the date of such application); provided that amounts applied under this clause
SECOND during any period when the First Lien Obligations of any such Class
shall not be due and payable in full shall be allocated to the First Lien Obligations
of such Class as if such First Lien Obligations were at the time due and payable in
full, and any amounts allocated to the payment of the First Lien Obligations of
such Class that are not yet due and payable shall be transferred to, and held by,
the Authorized Representative of such Class solely as collateral for the First Lien
Obligations of such Class (and shall not constitute Shared Collateral for purposes
hereof) until the date on which the First Lien Obligations of such Class shall have
become due and payable in full (at which time such amounts shall be applied to
the payment thereof); and

     (3) THIRD, after payment in full of all the First Lien Obligations, to the
Issuer and the other Grantors or their successors or assigns, as their interests may
appear, to whosoever may be lawfully entitled to receive the same pursuant to any
Junior Lien Intercreditor Agreement, or as a court of competent jurisdiction may
direct.

          (c) It is acknowledged that the First Lien Obligations of any Class may, subject to the
limitations set forth in the First Lien Credit Documents, be increased, extended, renewed,
replaced, restated, supplemented, restructured, repaid, refunded, Refinanced or otherwise amended
or modified from time to time, all without affecting the priorities set forth in Section 2.01(a)
or the provisions of this Agreement defining the relative rights of the Secured Parties of any
Class.

A-10

 

          SECTION 2.02. Impairments. It is the intention of the parties hereto that the Secured
Parties of each Class (and not the Secured Parties of any other Class) bear the risk of (a) any
determination by a court of competent jurisdiction that (i) any First Lien Obligations of such
Class are unenforceable under applicable law or are subordinated to any other obligations (other
than to any First Lien Obligations of any other Class), (ii) any First Lien Obligations of such
Class do not have a valid and perfected Lien on any of the Collateral securing any First Lien
Obligations of any other Class and/or (iii) any Person (other than any Authorized Representative or
any Secured Party) has a Lien on any Shared Collateral that is senior in priority to the Lien on
such Shared Collateral securing First Lien Obligations of such Class, but junior to the Lien on
such Shared Collateral securing any First Lien Obligations of any other Class (any such Lien being
referred to as an “Intervening Lien”, and any such Person being referred to as an “Intervening
Creditor”), or (b) the existence of any Collateral securing First Lien Obligations of any other
Class that does not constitute Shared Collateral with respect to First Lien Obligations of such
Class (any condition referred to in clause (a) or (b) with respect to First Lien Obligations of
such Class being referred to as an “Impairment” of such Class). In the event an Impairment exists
with respect to First Lien Obligations of any Class, the results of such Impairment shall be borne
solely by the Secured Parties of such Class, and the rights of the Secured Parties of such Class
(including the right to receive distributions in respect of First Lien Obligations of such Class
pursuant to Section 2.01(b)) set forth herein shall be modified to the extent necessary so that the
results of such Impairment are borne solely by the Secured Parties of such Class. In furtherance of
the foregoing, in the event First Lien Obligations of any Class shall be subject to an Impairment
in the form of an Intervening Lien of any Intervening Creditor, the value of any Shared Collateral
or Proceeds that are allocated to such Intervening Creditor shall be deducted solely from the
Shared Collateral or Proceeds to be distributed in respect of First Lien Obligations of such Class.
In addition, in the event the First Lien Obligations of any Class are modified pursuant to
applicable law (including pursuant to Section 1129 of the Bankruptcy Code), any reference to the
First Lien Obligations of such Class or the First Lien Documents of such Class shall refer to such
obligations or such documents as so modified.

          SECTION
2.03. Actions with Respect to Shared Collateral; Prohibition on Certain
Contests. (a) Notwithstanding anything to the contrary in the First Lien Credit Documents
(other than this Agreement), (i) only the Collateral Agent shall, and shall have the right to,
exercise, or refrain from exercising, any rights, remedies and powers with respect to the Shared
Collateral, including any action to enforce its security interest in or realize upon any Shared
Collateral and any right, remedy or power with respect to any Shared Collateral under any
intercreditor agreement (other than this Agreement), and then only on the instructions of the
Applicable Authorized Representative, (ii) the Collateral Agent shall not be required to, and
shall not, follow any instructions or directions with respect to Shared Collateral (including
with respect to any intercreditor agreement with respect to any Shared Collateral) from any
Non-Controlling Authorized Representative (or any other Secured Party, other than the Applicable
Authorized Representative), it being understood and agreed that, notwithstanding any such
instruction or direction by the Applicable Authorized Representative, the Collateral

A-11

 

Agent shall not be required to take any action that, in its opinion, could expose the Collateral
Agent to liability or be contrary to any First Lien Document or applicable law, and (iii) no
Non-Controlling Authorized Representative or any other Secured Party (other than the Applicable
Authorized Representative) shall, or shall instruct the Collateral Agent to, commence any judicial
or nonjudicial foreclosure proceedings with respect to, seek to have a trustee, receiver,
liquidator or similar official appointed for or over, attempt any action to take possession of,
take any other action to enforce its security interest in or realize upon, or exercise any other
right, remedy or power with respect to (including any right, remedy or power under any
intercreditor agreement other than this Agreement) any Shared Collateral, whether under any First
Lien Credit Document, applicable law or otherwise, it being agreed that only the Collateral Agent,
acting on the instructions of the Applicable Authorized Representative and in accordance with the
applicable First Lien Security Documents, shall be entitled to take any such actions or exercise
any such rights, remedies and powers with respect to Shared Collateral. Notwithstanding the equal
priority of the Liens established under Section 2.01(a), the Collateral Agent (acting on the
instructions of the Applicable Authorized Representative) may deal with the Shared Collateral as if
the Collateral Agent had a senior Lien on such Collateral. No Non-Controlling Authorized
Representative or Non-Controlling Secured Party will contest, protest or object to any foreclosure
proceeding or action brought by the Collateral Agent, the Applicable Authorized Representative or
any Controlling Secured Party, or any other exercise by the Collateral Agent, the Applicable
Authorized Representative or any Controlling Secured Party of any rights, remedies or powers with
respect to the Shared Collateral, or seek to cause the Collateral Agent to do so. Nothing in this
paragraph shall be construed to limit the rights and priorities of the Collateral Agent, any
Authorized Representative or any other Secured Party with respect to any Collateral not
constituting Shared Collateral.

          (b) The Collateral Agent and each of the Authorized Representatives
agrees that it will not accept any Lien on any asset of any Grantor securing First Lien
Obligations of any Class for the benefit of any Secured Party of such Class other than
pursuant to the First Lien Security Documents, other than (i) any funds deposited for the
discharge or defeasance of First Lien Obligations of any Class and (ii) any rights of set-off created under the First Lien Credit Documents of any Class.

          (c) Each of the Authorized Representatives agrees, for itself and on behalf
of its Related Secured Parties, that neither such Authorized Representative nor its Related
Secured Parties will (and each hereby waives any right to) challenge or contest or support
any other Person in challenging or contesting, in any proceeding (including any
Insolvency or Liquidation Proceeding), (i) the validity, attachment, creation, perfection,
priority or enforceability of a Lien held by or on behalf of the Collateral Agent or any
other Authorized Representative or any of its Related Secured Parties in all or any part of
the Collateral, (ii) the validity, enforceability or effectiveness of any First Lien
Obligation
of any Class or any First Lien Security Document of any Class or (iii) the validity,
enforceability or effectiveness of the priorities, rights or duties established by, or other
provisions of, this Agreement; provided that nothing in this Agreement shall be
construed

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to prevent or impair the rights of the Collateral Agent, any Authorized Representative or any of
its Related Secured Parties to enforce this Agreement.

          SECTION
2.04. No Interference; Payment Over. (a) Each of the Authorized
Representatives, for itself and on behalf of its Related Secured Parties, agrees that (i) neither
such Authorized Representative nor its Related Secured Parties will (and each hereby waives any
right to) take or cause to be taken any action the purpose of which is, or could reasonably be
expected to be, to interfere, hinder or delay, in any manner, whether by judicial proceedings or
otherwise, any sale, transfer or other disposition of the Shared Collateral by the Collateral
Agent, (ii) except as provided in Section 2.03, neither such Authorized Representative nor its
Related Secured Parties shall have any right (A) to direct the Collateral Agent or any other
Secured Party to exercise any right, remedy or power with respect to any Shared Collateral
(including pursuant to any intercreditor agreement) or (B) to consent to the exercise by the
Collateral Agent or any other Secured Party of any right, remedy or power with respect to any
Shared Collateral, (iii) neither such Authorized Representative nor its Related Secured Parties
will (and each hereby waives any right to) institute any suit or proceeding, or assert in any suit
or proceeding any claim, against the Collateral Agent or any other Secured Party seeking damages
from or other relief by way of specific performance, instructions or otherwise with respect to any
Shared Collateral, and none of the Collateral Agent, any Applicable Authorized Representative or
any other Secured Party shall be liable for any action taken or omitted to be taken by the
Collateral Agent, such Applicable Authorized Representative or such other Secured Party with
respect to any Shared Collateral in accordance with the provisions of this Agreement, and (iv)
neither such Authorized Representative nor its Related Secured Parties will (and each hereby waives
any right to) seek to have any Shared Collateral or any part thereof marshaled upon any foreclosure
or other disposition of such Shared Collateral; provided that nothing in this Agreement
shall be construed to prevent or impair the rights of the Collateral Agent or any Authorized
Representative or any of its Related Secured Parties to enforce this Agreement.

          (b) Each Authorized Representative, on behalf of itself and its Related Secured Parties,
agrees that if such Authorized Representative or any of its Related Secured Parties shall at any
time obtain possession of any Shared Collateral or receive any Proceeds (other than as a result of
any application of Proceeds pursuant to Section 2.01(b)) at any time prior to the Discharge of
First Lien Obligations of each other Class, (i) such Authorized Representative or its Related
Secured Party, as the case may be, shall promptly inform each Authorized Representative thereof,
(ii) such Authorized Representative or its Related Secured Party shall hold such Shared Collateral
or Proceeds in trust for the benefit of the Secured Parties of any Class entitled thereto pursuant
to Section 2.01(b) and (iii) such Authorized Representative or its Related Secured Party shall
promptly transfer such Shared Collateral or Proceeds to the Collateral Agent, for distribution in
accordance with Section 2.01(b).

          SECTION 2.05. Automatic Release of Liens; Amendments to First Lien Security
Documents. (a) Notwithstanding anything to the contrary in the First Lien Credit Documents or
First Lien Security Documents (but subject to the provisions of

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Section 11.02 of the Indenture in the case of the release of a material portion of the “Collateral”
(as defined in the Indenture) from the Liens of the Security Documents), if at any time the
Collateral Agent forecloses upon or otherwise exercises rights, remedies and powers against any
Shared Collateral resulting in a disposition thereof, then (whether or not any Insolvency or
Liquidation Proceeding is pending at the time) the Liens on such Shared Collateral in favor of the
Collateral Agent, for the benefit of the Secured Parties of all Classes, will automatically be
released and discharged; provided that any Proceeds realized therefrom shall be applied
pursuant to Section 2.01(b).

          (b) Each of the Authorized Representatives, for itself and on behalf of its
Related Secured Parties, acknowledges and agrees that (i) the Collateral Agent may enter
into any amendment or other modification to any First Lien Security Document so long
as the Collateral Agent receives a certificate of the Issuer stating that such amendment or
other modification is permitted by the terms of the First Lien Credit Documents of each
Class and (ii) the Collateral Agent may enter into any amendment or other modification
to any First Lien Security Document solely as such First Lien Security Document relates
to First Lien Obligations of a particular Class so long as (A) such amendment or
modification is in accordance with the First Lien Credit Documents of
such Class and (B) such amendment or modification does not adversely affect the interests of the
Secured Parties of any other Class.

          (c) Each Authorized Representative agrees to execute and deliver (at the
sole cost and expense of the Grantors) all such consents, confirmations, authorizations
and other instruments as shall reasonably be requested by the Collateral Agent to
evidence and confirm any release of Shared Collateral or amendment or modification to
any First Lien Security Document provided for in this Section.

          SECTION 2.06. Certain Agreements with Respect to Bankruptcy and Insolvency
Proceedings. (a) The Authorized Representative of each Class, for itself and on behalf of its
Related Secured Parties, agrees that, if any Issuer or any other Grantor shall become subject to a
case (a “Bankruptcy Case”) under the Bankruptcy Code and shall, as debtor-in-possession, move for
approval of financing (“DIP Financing”) to be provided by
one or more lenders (the “DIP Lenders”)
under Section 364 of the Bankruptcy Code or any equivalent provision of any other Bankruptcy Law
or the use of cash collateral under Section 363 of the Bankruptcy Code or any equivalent provision
of any other Bankruptcy Law, neither such Authorized Representative nor its Related Secured
Parties will raise any objection to any such financing or to the Liens on the Shared Collateral
securing any such financing (“DIP Financing Liens”) or to any use of cash collateral that
constitutes Shared Collateral, in each case unless the Applicable Authorized Representative shall
then oppose or object to such DIP Financing or such DIP Financing Liens or such use of cash
collateral (and (i) to the extent that such DIP Financing Liens are senior to the Liens on any
such Shared Collateral for the benefit of the Controlling Secured Parties, each Non-Controlling
Secured Party will subordinate its Liens with respect to such Shared Collateral on the same terms
as the Liens of the Controlling Secured Parties (other than any Liens of any Controlling Secured
Parties constituting DIP Financing Liens) are subordinated thereto, and (ii) to the extent that
such

A-14

 

DIP
Financing Liens rank pari passu with the Liens on any such Shared Collateral granted to
secure the First Lien Obligations of the Controlling Secured Parties, each Non-Controlling Secured
Party will confirm the priorities with respect to such Shared Collateral as set forth herein), in
each case so long as (A) the Secured Parties of such Class retain the benefit of their Liens on all
such Shared Collateral subject to the DIP Financing Liens, including proceeds thereof arising after
the commencement of the Bankruptcy Case, with such Liens having the same priority with respect to
Liens of the Secured Parties of any other Class (other than any Liens of the Secured Parties of
such other Class constituting DIP Financing Liens) as existed prior to the commencement of the
Bankruptcy Case, (B) the Secured Parties of such Class are granted Liens on any additional
collateral provided to the Secured Parties of any other Class as adequate protection or otherwise
in connection with such DIP Financing or use of cash collateral, with such Liens having the same
priority with respect to Liens of the Secured Parties of any other Class (other than any Liens of
the Secured Parties of such other Class constituting DIP Financing Liens) as existed prior to the
commencement of the Bankruptcy Case, (C) if any amount of such DIP Financing or cash collateral is
applied to repay any First Lien Obligations, such amount is applied in accordance with Section
2.01(b), and (D) if the Secured Parties of any Class are granted adequate protection, including in
the form of periodic payments, in connection with such DIP Financing or use of cash collateral, the
proceeds of such adequate protection are applied in accordance with Section 2.01(b);
provided that the Secured Parties of each Class shall have a right to object to the grant,
as security for the DIP Financing, of a Lien on any Collateral subject to Liens in favor of the
Secured Parties of such Class or its Authorized Representative that shall not constitute Shared
Collateral; and provided further that any Secured Party receiving adequate protection
granted in connection with the DIP Financing or such use of cash collateral shall not object to any
other Secured Party receiving adequate protection comparable to any such adequate protection
granted to such Secured Party.

          SECTION 2.07. Reinstatement. If, in any Insolvency or Liquidation Proceeding or
otherwise, all or part of any payment with respect to the First Lien Obligations of any Class
previously made shall be rescinded for any reason whatsoever (including an order or judgment for
disgorgement of a preference under the Bankruptcy Code, or any similar law), then the terms and
conditions of Article II shall be fully applicable thereto until all the First Lien Obligations of
such Class shall again have been paid in full in cash.

          SECTION 2.08. Insurance and Condemnation Awards. As between the Secured Parties, the
Collateral Agent, acting at the direction of the Applicable Authorized Representative, shall have
the exclusive right, subject to the rights of the Grantors under the First Lien Security
Documents, to settle and adjust claims in respect of Shared Collateral under policies of
insurance covering or constituting Shared Collateral and to approve any award granted in any
condemnation or similar proceeding, or any deed in lieu of condemnation, in respect of the Shared
Collateral; provided that any Proceeds arising therefrom shall be subject to Section
2.01(b).

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          SECTION 2.09. Refinancings. The First Lien Obligations of any Class may be
Refinanced, in whole or in part, in each case, without notice to, or the consent of, any Secured
Party of any other Class, all without affecting the priorities provided for herein or the other
provisions hereof; provided that nothing in this Section shall affect any limitation on any
such Refinancing that is set forth in the First Lien Credit Documents of any such other Class; and
provided further that, if any obligations of the Grantors in respect of such Refinancing
Indebtedness shall be secured by Liens on any Shared Collateral, then such obligations and the
holders thereof shall be subject to and bound by the provisions of this Agreement and the
Authorized Representative of the holders of any such Refinancing Indebtedness shall have executed
an Additional Authorized Representative Joinder Agreement.

          SECTION 2.10. Possessory Collateral Agent as Gratuitous Bailee for Perfection. (a)
The Collateral Agent agrees to hold any Shared Collateral constituting Possessory Collateral that
is part of the Collateral in its possession or control (or in the possession or control of its
agents or bailees) as gratuitous bailee for the benefit of each other Secured Party and any
assignee solely for the purpose of perfecting the security interest granted in such Possessory
Collateral, if any, pursuant to the applicable First Lien Security Documents, in each case subject
to the terms and conditions of this Section. Pending delivery to the Collateral Agent, each
Authorized Representative agrees to hold any Shared Collateral constituting Possessory Collateral,
from time to time in its possession, as gratuitous bailee for the benefit of each other Secured
Party and any assignee, solely for the purpose of perfecting the security interest granted in such
Possessory Collateral, if any, pursuant to the applicable First Lien Security Documents, in each
case, subject to the terms and conditions of this Section.

          (b) The duties or responsibilities of the Collateral Agent and each Authorized Representative
under this Section shall be limited solely to holding any Shared Collateral constituting
Possessory Collateral as gratuitous bailee for the benefit of each other Secured Party for
purposes of perfecting the Lien held by such Secured Parties therein.

ARTICLE III 

Determinations with Respect to Obligations and Liens

          Whenever, in connection with the exercise of its rights or the performance of its obligations
hereunder, the Collateral Agent or the Authorized Representative of any Class shall be required to
determine the existence or amount of any First Lien Obligations of any Class, or the Shared
Collateral subject to any Lien securing the First Lien Obligations of any Class (and whether such
Lien constitutes a valid and perfected Lien), it may request that such information be furnished to
it in writing by the Authorized Representative of such Class and shall be entitled to make such
determination on the basis of the information so furnished; provided that if,
notwithstanding such request, the Authorized Representative of the applicable Class shall fail or
refuse reasonably promptly to provide the requested information, the requesting Collateral Agent
or

A-16 

 

Authorized Representative shall be entitled to make any such determination by such method as
it may, in the exercise of its good faith judgment, determine, including by reliance upon an
Officers’ Certificate. The Collateral Agent and each Authorized Representative may rely
conclusively, and shall be fully protected in so relying, on any determination made by it in
accordance with the provisions of the preceding sentence (or as otherwise directed by a court of
competent jurisdiction) and shall have no liability to any Grantor, any Secured Party or any other
Person as a result of such determination or any action or not taken pursuant thereto.

ARTICLE IV 

Concerning the Collateral Agent

          SECTION 4.01. Appointment and Authority. (a) Each of the Authorized Representatives,
for itself and on behalf of its Related Secured Parties, hereby irrevocably appoints [ ] to act as
the Collateral Agent hereunder and under each of the First Lien Security Documents, and authorizes
the Collateral Agent to take such actions and to exercise such powers as are delegated to the
Collateral Agent by the terms hereof or thereof, including for purposes of acquiring, holding and
enforcing any and all Liens on Collateral granted by any Grantor to secure any of the First Lien
Obligations, together with such actions and powers as are reasonably incidental thereto. In
addition, to the extent required under the laws of any jurisdiction other than the United States,
each of the Authorized Representatives, for itself and on behalf of its Related Secured Parties,
hereby grants to the Collateral Agent any required powers of attorney to execute any First Lien
Security Document governed by the laws of such jurisdiction on such Secured Party’s behalf.
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 Shared
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 First Lien Security Documents.

          (b) Each of the Authorized Representatives, for itself and on behalf of its Related Secured
Parties, acknowledges and agrees that the Collateral Agent shall be entitled, for the benefit of
the Secured Parties, to sell, transfer or otherwise dispose of or deal with any Shared Collateral
as provided herein and in the First Lien Security Documents, without regard to any rights,
remedies or powers to which the Non-Controlling Secured Parties would otherwise be entitled to as
a result of their Non-Controlling Secured Obligations. Without limiting the foregoing, each of the
Authorized Representatives, for itself and on behalf of its Related Secured Parties, agrees that
none of the Collateral Agent, the Applicable Authorized Representative or any other Secured Party
shall have any duty or obligation first to marshal or realize upon any type of Shared Collateral
(or any other Collateral securing any of the First Lien Obligations), or to sell, dispose of or
otherwise liquidate all or any portion of such Shared Collateral (or any other Collateral securing
any First Lien Obligations), in any manner that would maximize the return to the Non-Controlling
Secured Parties, notwithstanding that the order and timing of any such realization, sale,
disposition or liquidation may affect the amount of

A-17 

 

proceeds actually received by the Non-Controlling Secured Parties from such realization,
sale, disposition or liquidation. Each of the Authorized Representatives, for itself and on behalf
of its Related Secured Parties, waives any claim they may now or hereafter have against the
Collateral Agent or the Authorized Representative or any Secured Party of any other Class arising
out of (i) any actions that the Collateral Agent or any such Authorized Representative or Secured
Party takes or omits to take (including actions with respect to the creation, perfection or
continuation of Liens on any Collateral, actions with respect to the foreclosure upon, sale or
other disposition, release or depreciation of, or failure to realize upon, any of the Collateral
and actions with respect to the collection of any claim for all or any part of the First Lien
Obligations from any account debtor, guarantor or any other party) in accordance with the First
Lien Security Documents or any other agreement related thereto or to the collection of the First
Lien Obligations or the valuation, use, protection or release of any security for the First Lien
Obligations, (ii) any election by any Applicable Authorized Representative or Secured Parties, in
any proceeding instituted under the Bankruptcy Code, of the
application of Section 1111(b) of the
Bankruptcy Code or (iii) subject to Section 2.06, any borrowing by, or grant of a security interest
or administrative expense priority under Section 364 of the Bankruptcy Code or any equivalent
provision of any other Bankruptcy Law by, the Issuer, the Company or any of their respective
Subsidiaries, as debtor-in-possession. Notwithstanding any other provision of this Agreement, the
Collateral Agent shall not accept any Shared Collateral in full or partial satisfaction of any
First Lien Obligations pursuant to Section 9-620 of the Uniform Commercial Code of any jurisdiction
without the consent of each Authorized Representative representing Secured Parties for whom such
Collateral constitutes Shared Collateral.

          (c) Each of the Authorized Representatives, for itself and on behalf of its Related Secured
Parties, acknowledges and agrees that, upon any other obligations being designated hereunder as
Additional First Lien Obligations or any other Person becoming an Additional Authorized
Representative or any other Persons becoming Additional Secured Parties, the Collateral Agent will
continue to act in its capacity as Collateral Agent in respect of the then existing Authorized
Representatives and Secured Parties and such Additional Authorized Representative and Additional
Secured Parties.

          SECTION 4.02. Rights as a Secured Party. (a) The Person serving as the Collateral
Agent hereunder shall have the same rights and powers in its capacity as a Secured Party of any
Class as any other Secured Party of such Class and may exercise the same as though it were not
the Collateral Agent and the term “Secured Party”, “Secured Parties”, “Indenture Secured Party”,
“Indenture Secured Parties”, “Additional Secured Party” or “Additional Secured Parties”, as
applicable, shall, unless otherwise expressly indicated or unless the context otherwise requires,
include the Person serving as the Collateral Agent hereunder in its individual capacity. The
Person serving as the Collateral Agent and its Affiliates may accept deposits from, lend money
to, act as the financial advisor or in any other advisory capacity for and generally engage in
any kind of business with the Issuer, the Company, or any of their respective Subsidiary or other
Affiliate thereof as if such Person were not the Collateral Agent hereunder and without any duty
to account therefor to any other Secured Party.

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          SECTION 4.03. Exculpatory Provisions. The Collateral Agent shall not have any
duties or obligations except those expressly set forth herein and in the other First Lien Security
Documents. Without limiting the generality of the foregoing, the Collateral Agent:

     (i) shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default or an Event of Default has occurred and is continuing;

     (ii) shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated
hereby or by the First Lien Security Documents that the Collateral Agent is required
to exercise as directed in writing by the Applicable Authorized Representative;
provided that the Collateral Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Collateral Agent to
liability or that is contrary to any First Lien Security Document or applicable law;

     (iii) shall not, except as expressly set forth in this Agreement and in the First
Lien Security Documents, have any duty to disclose, and shall not be liable for the
failure to disclose, any information relating to the Issuer, the Company, or any of
their respective Subsidiaries or any of their respective Affiliates that is
communicated to or obtained by the Person serving as the Collateral Agent or any of
its Affiliates in any capacity;

     (iv) shall not be liable for any action taken or not taken by it (A) with the
consent or at the request of the Applicable Authorized Representative or (B) in the
absence of its own gross negligence or wilful misconduct or (C) in reliance on an
Officers’ Certificate stating that such action is permitted by the terms of this
Agreement;

     (v) shall be deemed not to have knowledge of any Default or Event of Default under
any First Lien Credit Documents of any Class unless and until notice describing such
Default or Event Default is given to the Collateral Agent by the Authorized
Representative of such Class or the Issuer in accordance with the applicable First Lien
Credit Document; and

     (vi) shall not be responsible for or have any duty to ascertain or inquire into
(A) any statement, warranty or representation made in or in connection with this
Agreement or any First Lien Security Document, (B) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection herewith or
therewith, (C) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth herein or therein or the occurrence of any Default
or Event of Default, (D) the validity, enforceability, effectiveness or genuineness of
this Agreement, any First Lien Security Document or any other agreement, instrument or
document, or the validity, attachment, creation, perfection,

A-19 

 

priority or enforceability of any Lien purported to be created by the First
Lien Security Documents, (E) the value or the sufficiency of any Collateral for First
Lien Obligations of any Class or (F) the satisfaction of any condition set forth in
any First Lien Credit Document, other than to confirm receipt of items expressly
required to be delivered to the Collateral Agent.

          SECTION 4.04. Reliance by Collateral Agent. The Collateral Agent shall be entitled to
rely, and shall not incur any liability for relying, upon any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated by the proper Person. The Collateral Agent also
shall be entitled to rely, and shall not incur any liability for relying, upon any statement made
to it orally or by telephone and believed by it to have been made by the proper Person. The
Collateral Agent may consult with legal counsel (who may be counsel for the Issuer, any other
Grantor or any Authorized Representative), 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.

          SECTION 4.05. Delegation of Duties. The Collateral Agent may perform any and all of
its duties and exercise its rights and powers hereunder or under any other First Lien Security
Document 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 of its duties and exercise its
rights and powers by or through their respective Affiliates. The exculpatory provisions of this
Article shall apply to any such sub-agent and to the Affiliates of the Collateral Agent and any
such sub-agent, and shall apply to their respective activities as the Collateral Agent.

          SECTION 4.06. Resignation of Collateral Agent. The Collateral Agent may at any time
give notice of its resignation as Collateral Agent under this Agreement and the First Lien
Security Documents to each Authorized Representative and the Issuer. Upon receipt of any such
notice of resignation, the Applicable Authorized Representative shall have the right, in
consultation with the Issuer, to appoint a successor. If no such successor shall have been so
appointed by the Applicable Authorized Representative and shall have accepted such appointment
within 30 days after the retiring Collateral Agent gives notice of its resignation, then the
retiring Collateral Agent may, on behalf of the Secured Parties, appoint a successor Collateral
Agent meeting the qualifications set forth above; provided that if the Collateral Agent
shall notify each Authorized Representative and the Issuer that no qualifying Person has accepted
such appointment, then such resignation shall nonetheless become effective in accordance with such
notice and (a) the retiring Collateral Agent shall be discharged from its duties and obligations
hereunder and under the First Lien Security Documents (except that in the case of any Collateral
held by the Collateral Agent on behalf of the Secured Parties under any First Lien Security
Document, the retiring Collateral Agent shall continue to hold such Collateral solely for purposes
of maintaining the perfection of the security interests of the Secured Parties therein until such
time as a successor Collateral Agent is appointed but with no

A-20 

 

obligation to take any further action at the request of the Applicable Authorized
Representative or any other Secured Parties) and (b) all payments, communications and
determinations provided to be made by, to or through the Collateral Agent shall instead be made by
or to each Authorized Representative directly, until such time as the Applicable Authorized
Representative appoints a successor Collateral Agent as provided above. Upon the acceptance of a
successor’s appointment as Collateral Agent hereunder and under the First Lien Security Documents,
such successor shall succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring (or retired) Collateral Agent, and the retiring Collateral Agent shall be
discharged from all of its duties and obligations hereunder or under the First Lien Security
Documents (if not already discharged therefrom as provided above). Notwithstanding the resignation
of the Collateral Agent hereunder and under the First Lien Security Documents, the provisions of
this Article and the equivalent provision of any Additional First Lien Document shall continue in
effect for the benefit of such retiring Collateral Agent, its sub-agents and their respective
Related Secured Parties in respect of any actions taken or omitted to be taken by any of them while
the retiring Collateral Agent was acting as Collateral Agent. Upon any notice of resignation of the
Collateral Agent hereunder and under the First Lien Security Documents, the Issuer agrees to use
commercially reasonable efforts to transfer (and maintain the validity and priority of) the Liens
in favor of the retiring Collateral Agent under the First Lien Security Documents to the successor
Collateral Agent.

          SECTION 4.07. Collateral Matters. Each of the Secured Parties irrevocably
authorizes the Collateral Agent, at its option and in its discretion:

     (a) to release any Lien on any property granted to or held by the Collateral Agent
under any First Lien Security Document in accordance with Sections 2.03 and 2.05 or upon
receipt of an Officers’ Certificate stating that such release is permitted by the terms of
the First Lien Credit Documents; and

     (b) to release any Grantor from its obligations under the First Lien Security
Documents upon receipt of an Officers’ Certificate stating that such release is permitted
by the terms of the First Lien Credit Documents.

ARTICLE V

No Liability

          SECTION 5.01. Information. The Collateral Agent or the Authorized Representative or
Secured Parties of any Class shall have no duty to disclose to any Secured Party of any other
Class any information relating to the Issuer, the Company or any of their respective Subsidiaries,
or any other circumstance bearing upon the risk of nonpayment of any of the First Lien
Obligations, that is known or becomes known to any of them or any of their Affiliates. If the
Collateral Agent or the Authorized Representative or any Secured Party of any Class, in its sole
discretion, undertakes at any time or from time to time to provide any such information to, as the
case may be, the Authorized Representative or any Secured Party of any other Class, it shall be
under no

A-21 

 

obligation (i) to make, and shall not be deemed to have made, any express or implied
representation or warranty, including with respect to the accuracy, completeness, truthfulness or
validity of the information so provided, (ii) to provide any additional information or to provide
any such information on any subsequent occasion or (iii) to undertake any investigation.

          SECTION 5.02. No Warranties or Liability. (a) Each Authorized Representative, for
itself and on behalf of its Related Secured Parties, acknowledges and agrees that neither the
Collateral Agent nor the Authorized Representative or any Secured Party of any other Class has
made any express or implied representation or warranty, including with respect to the execution,
validity, legality, completeness, collectability or enforceability of any of the First Lien Credit
Documents, the ownership of any Shared Collateral or the perfection or priority of any Liens
thereon. The Authorized Representative and the Secured Parties of any Class will be entitled to
manage and supervise their loans and other extensions of credit in the manner determined by them.

          (b) No Authorized Representative or Secured Parties of any Class shall have any express or
implied duty to the Authorized Representative or any Secured Party of any other Class to act or
refrain from acting in a manner that allows, or results in, the occurrence or continuance of a
Default or an Event of Default under any First Lien Credit Document (other than, in each case,
this Agreement), regardless of any knowledge thereof that they may have or be charged with.

ARTICLE VI 

Additional First Lien Obligations

          The Issuer may, at any time and from time to time, subject to any limitations contained in
the First Lien Credit Documents in effect at such time, designate additional Indebtedness and
related obligations that are, or are to be, secured by Liens on any assets of the Issuer or any
other Grantor that would, if such Liens were granted, constitute Shared Collateral as “Additional
First Lien Obligations” by delivering to the Collateral Agent and each Authorized Representative
party hereto at such time an Officers’ Certificate:

     (a) describing the Indebtedness and other obligations being designated as Additional
First Lien Obligations, and including a statement of the maximum aggregate outstanding
principal amount of such Indebtedness as of the date of such certificate;

     (b) setting forth the Additional First Lien Documents under which such Additional First
Lien Obligations are issued or incurred or the guarantees of such Additional First Lien
Obligations are, or are to be, created, and attaching copies of such Additional First Lien
Documents as each Grantor has executed and delivered to the Person that serves as the
administrative agent, trustee or a similar representative for the holders of such Additional
First Lien Obligations (such Person being referred to as the “Additional Authorized
Representative”) with

A-22 

 

respect to such Additional First Lien Obligations on the closing date of such
Additional First Lien Obligations, certified as being true and complete by an Officers’
Certificate;

     (c) identifying the Person that serves as the Additional Authorized Representative;

     (d) certifying that the incurrence of such Additional First Lien Obligations,
the creation of the Liens securing such Additional First Lien Obligations and the
designation of such Additional First Lien Obligations as “Additional First Lien
Obligations” hereunder do not violate or result in a default under any provision of any
First Lien Credit Documents in effect at such time;

     (e) certifying that the Additional First Lien Documents authorize the Additional
Authorized Representative to become a party hereto by executing and delivering an
Additional Authorized Representative Joinder Agreement and provide that upon such execution
and delivery, such Additional First Lien Obligations and the holders thereof shall become
subject to and bound by the provisions of this Agreement; and

     (f) attaching a fully completed Authorized Representative Joinder Agreement
executed and delivered by the Additional Authorized Representative.

          Upon the delivery of such certificate and the related attachments as provided above, the
obligations designated in such notice as “Additional First Lien Obligations” shall become
Additional First Lien Obligations for all purposes of this Agreement.

ARTICLE VII

 Miscellaneous

          SECTION 7.01. Notices. All notices and other communications provided for herein shall
be in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

     (a) if to any Grantor, to it (or, in the case of any Grantor other than the Issuer, to
it in care of the Issuer) at [    ];

     (b) if to the Collateral Agent or the Trustee, to it at [    ] (Facsimile No.: [   
]), with a copy to [    ];

     (c) if to the Initial Additional Authorized Representative, to it at [    ];

     (d) if to any other Additional Authorized Representative, to it at the address set
forth in the applicable Joinder Agreement.

A-23 

 

          Any party hereto may change its address or facsimile number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt (if a Business Day) and on the next Business
Day thereafter (in all other cases) if delivered by hand or overnight courier service or sent by
facsimile or on the date five Business Days after dispatch by certified or registered mail if
mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in
this Section or in accordance with the latest unrevoked direction from such party given in
accordance with this Section. As agreed to in writing by any party hereto from time to time,
notices and other communications to such party may also be delivered by e-mail to the e-mail
address of a representative of such party provided from time to time by such party.

          SECTION 7.02. Waivers; Amendment; Joinder Agreements. (a) No failure or delay on the
part of any party hereto in exercising any right or power hereunder shall operate as a waiver
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
parties hereto are cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of this Agreement or consent to any departure by any
party therefrom shall in any event be effective unless the same shall be permitted by paragraph
(b) of this Section, 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 party hereto in any case
shall entitle such party to 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 otherwise
modified except pursuant to an agreement or agreements in writing entered into by the Collateral
Agent and each Authorized Representative then party hereto; provided that no such
agreement shall by its terms amend, modify or otherwise affect the rights or obligations of any
Grantor without the Issuer’s prior written consent;
provided further that (i) without the
consent of any party hereto, (A) this Agreement may be supplemented by an Authorized
Representative Joinder Agreement, and an Additional Authorized Representative may become a party
hereto, in accordance with Article VI and (B) this Agreement may be supplemented by a Grantor
Joinder Agreement, and a Subsidiary may become a party hereto, in accordance with Section 7.13,
and (ii) in connection with any Refinancing of First Lien Obligations of any Class, or the
incurrence of Additional First Lien Obligations of any Class, the Collateral Agent and the
Authorized Representatives then party hereto shall enter (and are hereby authorized to enter
without the consent of any other Secured Party), at the request of the Collateral Agent, any
Authorized Representative or the Issuer, into such amendments or modifications of this Agreement
as are reasonably necessary to reflect such Refinancing or such incurrence and are reasonably
satisfactory to the Collateral Agent and each such Authorized Representative.

A-24 

 

          SECTION 7.03. Parties in Interest. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, as well as
the other Secured Parties, all of whom are intended to be bound by, and to be third party
beneficiaries of, this Agreement.

          SECTION 7.04. Effectiveness; Survival. This Agreement shall become effective when
executed and delivered by the parties hereto. All covenants, agreements, representations and
warranties made by any party in this Agreement shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this Agreement. This
Agreement shall continue in full force and effect notwithstanding the commencement of any
Insolvency or Liquidation Proceeding against the Issuer, the Company, or any of their respective
Subsidiaries.

          SECTION 7.05. Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original but all of which when taken together shall constitute a single
contract. Delivery of an executed signature page to this Agreement by facsimile or other
electronic transmission shall be as effective as delivery of a manually signed counterpart of this
Agreement.

          SECTION 7.06. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate 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 7.07. Governing Law. This Agreement shall be construed in accordance with and
governed by the law of the State of New York.

          SECTION 7.08. Submission to Jurisdiction Waivers; Consent to Service of Process. The
Collateral Agent and each Authorized Representative, for itself and on behalf of its Related
Secured Parties, irrevocably and unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement and the First Lien Security Documents, or for recognition and enforcement of
any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the
State of New York, the courts of the United States of America for the Southern District of
New York and appellate courts from any thereof;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

A-25 

 

     (c) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to such Person (or its Authorized Representative)
at the address referred to in Section 7.01;

     (d) agrees that nothing herein shall affect the right of any other party hereto (or
any Secured Party) to effect service of process in any other manner permitted by law or
shall limit the right of any party hereto (or any Secured Party) to sue in any other
jurisdiction; and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to
claim or recover in any legal action or proceeding referred to in this Section any
special, exemplary, punitive or consequential damages.

          SECTION 7.09. WAIVER OF JURY TRIAL. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HERETO 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 BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 7.10. Headings. Article and Section headings 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 7.11. Conflicts. In the event of any conflict or inconsistency between the
provisions of this Agreement (including Section 2.05 hereof) and the provisions of any of the
First Lien Credit Documents, the provisions of this Agreement shall control.

          SECTION 7.12. Provisions Solely to Define Relative Rights. The provisions of this
Agreement are and are intended solely for the purpose of defining the relative rights of the
Secured Parties in relation to one another. Except as expressly provided in this Agreement, none
of the Issuer, any other Grantor, any other Subsidiary or any other creditor of any of the
foregoing shall have any rights or obligations hereunder, and none of the Issuer, any other
Grantor or any other Subsidiary may rely on the terms hereof. Nothing in this Agreement is
intended to or shall impair the obligations of the Issuer or any other Grantor, which are absolute
and unconditional, to pay the First Lien Obligations as and when the same shall become due and
payable in accordance with their terms.

A-26 

 

          SECTION 7.13. Additional Grantors. In the event any Subsidiary shall have
granted a Lien on any of its assets to secure any First Lien Obligations, the Issuer shall cause
such Subsidiary, if not already a party hereto, to become a party hereto as a “Grantor”. Upon the
execution and delivery by any Subsidiary of a Grantor Joinder Agreement, any such Subsidiary shall
become a party hereto and a Grantor hereunder with the same force and effect as if originally named
as such herein. The execution and delivery of any such instrument shall not require the consent of
any other party hereto. The rights and obligations of each party hereto shall remain in full force
and effect notwithstanding the addition of any new Grantor as a party to this Agreement.

          SECTION 7.14. Integration. This Agreement, together with the other First Lien Credit
Documents, represents the agreement of each of the Grantors and the Secured Parties with respect
to the subject matter hereof, and there are no promises, undertakings, representations or
warranties by any Grantor, the Collateral Agent or any other Secured Party relative to the subject
matter hereof not expressly set forth or referred to herein or in the other First Lien Credit
Documents.

          SECTION 7.15. Further Assurances. Each of the Collateral Agent, each Authorized
Representative and the Grantors agrees that it will execute, or will cause to be executed, any and
all further documents, agreements and instruments, and take all such further actions, as may be
required under any applicable law, or which the Collateral Agent or any Authorized Representative
may reasonably request, to effectuate the terms of this Agreement, including the relative Lien
priorities provided for herein.

A-27 

 

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

[ ],

as Authorized Representative for the Indenture

Secured Parties and Collateral Agent,

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[ ], as Initial Additional Authorized Representative,

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

DIAMOND RESORTS CORPORATION,

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

THE GRANTORS LISTED ON SCHEDULE I HERETO,

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

A-28 

 

SCHEDULE 1 to

PARI PASSU INTERCREDITOR AGREEMENT

Grantors

A-29 

 

EXHIBIT I to

PARI PASSU INTERCREDITOR AGREEMENT

     [FORM OF] ADDITIONAL AUTHORIZED REPRESENTATIVE AGENT JOINDER
AGREEMENT NO. [ ] dated as of [ ], [ ]
(this “Joinder Agreement”) to the
PARI PASSU INTERCREDITOR AGREEMENT dated as of [ ] (as amended,
supplemented or otherwise modified from time to time, the “Intercreditor
Agreement”), among DIAMOND RESORTS CORPORATION, a Maryland corporation
(the “Issuer”), the other GRANTORS party thereto, [ ], as collateral
agent for the Secured Parties (as defined below) (in such capacity, the
“Collateral Agent”) and as the Authorized Representative for the
Indenture Secured Parties in its capacity as trustee under the Indenture
(in such capacity, the “Trustee”), [ ], as the
Authorized Representative for the Initial Additional Secured Parties (in
such capacity, the “Initial Additional Authorized
 Representative”), and each ADDITIONAL AUTHORIZED REPRESENTATIVE from
time to time party thereto, as the Authorized Representative for any
Secured Parties of any other Class.

          Capitalized terms used herein but not otherwise defined herein shall have the meanings
assigned to such terms in the Intercreditor Agreement.

          The Issuer and the other Grantors propose to issue or incur “Additional First Lien
Obligations” designated by the Issuer as such in accordance with Article VI of the Intercreditor
Agreement in an Officers’ Certificate delivered concurrently herewith to the Collateral Agent and
the Authorized Representatives (the “Additional First Lien Obligations”). The Person
identified in the signature pages hereto as the “Additional Authorized Representative” (the
 “Additional Authorized Representative”) will serve as the administrative agent, trustee or
a similar representative for the holders of the Additional First Lien
Obligations (the “Additional
Secured Parties”).

          The Additional Authorized Representative wishes, in accordance with the provisions of the
Intercreditor Agreement, to become a party to the Intercreditor Agreement and to acquire and
undertake, for itself and on behalf of the Additional Secured Parties, the rights and obligations
of an “Additional Authorized Representative” and
“Secured Parties” thereunder.

          Accordingly, the Additional Authorized Representative, for itself and on behalf of its
Related Secured Parties, and the Issuer agree as follows, for the benefit of the Collateral Agent,
the existing Authorized Representatives and the existing Secured Parties:

A-30 

 

          SECTION 1.01. Accession to the Intercreditor Agreement. The Additional
Authorized Representative hereby (a) accedes and becomes a party to the Intercreditor Agreement as
an “Additional Authorized Representative”, (b) agrees, for itself and on behalf of the Additional
Secured Parties, to all the terms and provisions of the Intercreditor Agreement and (c)
acknowledges and agrees that (i) the Additional First Lien Obligations and Liens on any Collateral
securing the same shall be subject to the provisions of the Intercreditor Agreement and (ii) the
Additional Authorized Representative and the Additional Secured Parties shall have the rights and
obligations specified under the Intercreditor Agreement with respect to an “Authorized
Representative” or a “Secured Party”, and shall be subject to and bound by the provisions of the
Intercreditor Agreement. The Intercreditor Agreement is hereby incorporated by reference.

          SECTION 1.02. Representations and Warranties of the Additional Authorized
Representative. The Additional Authorized Representative represents and warrants to the
Collateral Agent, the existing Authorized Representatives and the existing Secured Parties that
(a) it has full power and authority to enter into this Joinder Agreement, in its capacity as the
Additional Authorized Representative, (b) this Joinder Agreement 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, and (c) the Additional First Lien Documents relating to
the Additional First Lien Obligations provide that, upon the Additional Authorized
Representative’s execution and delivery of this Joinder Agreement, (i) the Additional First Lien
Obligations and Liens on any Collateral securing the same shall be subject to the provisions of
the Intercreditor Agreement and (ii) the Additional Authorized Representative and the Additional
Secured Parties shall have the rights and obligations specified therefor under, and shall be
subject to and bound by the provisions of, the Intercreditor Agreement.

          SECTION 1.03. Parties in Interest. This Joinder Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, as well as
the other Secured Parties, all of whom are intended to be bound by, and to be third party
beneficiaries of, this Agreement.

          SECTION 1.04. Counterparts. This Joinder Agreement may be executed in counterparts,
each of which shall constitute an original but all of which when taken together shall constitute
a single contract. Delivery of an executed signature page to this Agreement by facsimile or other
electronic transmission shall be as effective as delivery of a manually signed counterpart of
this Joinder Agreement.

          SECTION 1.05. Governing Law. This Joinder Agreement shall be construed in accordance
with and governed by the law of the State of New York.

          SECTION 1.06. Notices. All communications and notices hereunder shall be in writing
and given as provided in Section 7.01 of the Intercreditor Agreement. All communications and
notices hereunder to the Additional Authorized Representative

A-31 

 

shall be given to it at the address set forth under its signature hereto, which information
supplements Section 7.01 to the Intercreditor Agreement.

          SECTION 1.07. Expenses. The Issuer agrees to reimburse the Collateral Agent and each
of the Authorized Representatives for its reasonable out-of-pocket expenses in connection with
this Joinder Agreement, including the reasonable fees, other charges and disbursements of counsel
for the Collateral Agent and any of the Authorized Representatives.

          SECTION 1.08. Incorporation by Reference. The provisions of Sections 7.04, 7.06,
7.08, 7.09, 7.10, 7.11 and 7.12 of the Intercreditor Agreement are hereby incorporated by
reference, mutatis mutandis, as if set forth in full herein.

          IN WITNESS WHEREOF, the Additional Authorized Representative and the Issuer have duly
executed this Joinder Agreement to the Intercreditor Agreement as of the day and year first above
written.

[ ], AS ADDITIONAL AUTHORIZED REPRESENTATIVE,

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Address for notices:

	 	 	 	 

	 

	 	 	 
	 
	 
	 	 	 
	 

	 	 	 
	 
	 	 	 
	 

	 	attention of:

	 
	 

	 	 	 
	 
	 	 	 
	 

	 	Facsimile:

	 
	 

	 	 	 

DIAMOND RESORTS CORPORATION,

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

A-32 

 

Acknowledged by:

[    ], AS THE COLLATERAL AGENT 

AND THE TRUSTEE,

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[    ], AS THE [INITIAL] ADDITIONAL 

AUTHORIZED REPRESENTATIVE,

	 
	 	 
	 	 	by	 	 	 	 

	 

	 	 
	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

A-33 

 

EXHIBIT II to

PARI PASSU INTERCREDITOR AGREEMENT

     [FORM OF] GRANTOR JOINDER AGREEMENT NO. [ ] dated as of [ ], [ ]
(this “Joinder Agreement”) to the PARI PASSU INTERCREDITOR AGREEMENT
dated as of [ ] (as amended, supplemented or otherwise modified from time
to time, the “Intercreditor Agreement”), among DIAMOND RESORTS
CORPORATION, a Maryland corporation (the “Issuer”), the other GRANTORS
party hereto, [ ], as collateral agent for the Secured Parties (as
defined below) (in such capacity, the “Collateral Agent”) and as
the Authorized Representative for the Indenture Secured Parties in its
capacity as trustee under the Indenture (in such capacity, the
“Trustee”), [ ], as the Authorized
Representative for the Initial Additional Secured Parties (in such
capacity, the “Initial Additional Authorized Representative”),
and each ADDITIONAL AUTHORIZED REPRESENTATIVE from time to time party
hereto, as the Authorized Representative for any Secured Parties of any
other Class.

          Capitalized terms used herein but not otherwise defined herein shall have the meanings
assigned to such terms in the Intercreditor Agreement.

          [   ], a [   ] [corporation] and a Subsidiary of the Company (the
“Additional Grantor”), has granted a Lien on all or a portion of its assets to secure First Lien
Obligations and such Additional Grantor is not a party to the Intercreditor Agreement.

          The Additional Grantor wishes to become a party to the First Lien Intercreditor Agreement and
to acquire and undertake the rights and obligations of a Grantor thereunder. The Additional
Grantor is entering into this Joinder Agreement in accordance with the provisions of the
Intercreditor Agreement in order to become a Grantor thereunder.

          Accordingly, the Additional Grantor agrees as follows, for the benefit of the Collateral
Agent, the Authorized Representatives and the Secured Parties:

          SECTION 1.01. Accession to the Intercreditor Agreement. The Additional Grantor (a)
hereby accedes and becomes a party to the Intercreditor Agreement as a “Grantor”, (b) agrees to
all the terms and provisions of the Intercreditor Agreement and (c) acknowledges and agrees that
the Additional Grantor shall have the rights and obligations specified under the Intercreditor
Agreement with respect to a “Grantor”, and shall be subject to and bound by the provisions of the
Intercreditor Agreement.

          SECTION 1.02. Representations and Warranties of the Additional Grantor. The
Additional Grantor represents and warrants to the Collateral Agent, the Authorized
Representatives and the Secured Parties that this Joinder Agreement has been

A-34 

 

duly authorized, executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms.

          SECTION 1.03. Parties in Interest. This Joinder Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, as well as
the other Secured Parties, all of whom are intended to be third party beneficiaries of this
Agreement.

          SECTION 1.04. Counterparts. This Joinder Agreement may be executed in counterparts,
each of which shall constitute an original but all of which when taken together shall constitute a
single contract. Delivery of an executed signature page to this Agreement by facsimile or other
electronic transmission shall be as effective as delivery of a manually signed counterpart of this
Joinder Agreement.

          SECTION 1.05. Governing Law. This Joinder Agreement shall be construed in accordance
with and governed by the law of the State of New York.

          SECTION 1.06. Notices. All communications and notices hereunder shall be in writing
and given as provided in Section 7.01 of the Intercreditor Agreement.

          SECTION 1.07. Expenses. The Grantor agrees to reimburse the Collateral Agent and each
of the Authorized Representatives for its reasonable out-of-pocket expenses in connection with
this Joinder Agreement, including the reasonable fees, other charges and disbursements of counsel
for the Collateral Agent and any of the Authorized Representatives.

          SECTION 1.08. Incorporation by Reference. The provisions of Sections 7.04, 7.06,
7.08, 7.09, 7.10, 7.11 and 7.12 of the Intercreditor Agreement are hereby incorporated by
reference, mutatis mutandis, as if set forth in full herein.

A-35 

 

          IN WITNESS WHEREOF, the Additional Grantor has duly executed this Joinder Agreement to
the Intercreditor Agreement as of the day and year first above written.

[NAME OF SUBSIDIARY],

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

A-36 

 

EXHIBIT B

[FORM OF]

JUNIOR LIEN INTERCREDITOR AGREEMENT

dated as of [    ],

among

DIAMOND RESORTS CORPORATION,

the other GRANTORS party hereto,

[    ],

as First Priority Representative,

and

[    ],

as Junior Priority Representative

 

 

     JUNIOR
LIEN INTERCREDITOR AGREEMENT (this “Agreement”), dated
as of [ ], among [ ], as collateral agent for the First Priority
Secured Parties (such term, and other capitalized terms used herein but
not otherwise defined, having the meaning set forth in Section 1.1 below)
(in such capacity, with its successors and assigns, and as more
specifically defined below, the “First Priority
Representative”), [
], as [ ] and as junior lien agent (in such capacity, with its
successors and assigns, and as more specifically defined below, the
 “Junior Priority Representative”) for the Junior Priority Secured
Parties, DIAMOND RESORTS CORPORATION, a Maryland corporation (the
“Issuer”) and the other GRANTORS (as defined below) party hereto.

     In consideration of the mutual agreements herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the First Priority
Representative, for itself and on behalf of First Priority Secured Parties, and the Junior Lien
Representative, for itself and on behalf of its Junior Priority Secured Parties, agree as follows:

     SECTION 1. Definitions.

     1.1 Defined Terms. Capitalized terms used but not otherwise defined herein have
the meanings assigned to such terms in the Existing First Priority Agreement referred to below. The
following terms, as used herein, have the following meanings:

     “Additional Debt” has the meaning assigned to such term in Section 9.3(b).

     “Additional First Priority Agreement” means any agreement designated as such in
writing (including by addendum to this Agreement) by the First Priority Representative and the
Junior Priority Representative in accordance with the terms of the First Priority Agreement and
Junior Priority Agreement, respectively.

     “Additional Junior Priority Agreement” means any agreement designated as such in
writing (including by addendum to this Agreement) by the First Priority Representative and the
Junior Priority Representative in accordance with the terms of the First Priority Agreement and
Junior Priority Agreement, respectively.

     “Agreement” has the meaning assigned to such term in the preamble hereto.

     “Bankruptcy Code” means Title 11 of the United States Code.

     “Bankruptcy
Law” means each of the Bankruptcy Code and any similar federal, state or foreign
bankruptcy, insolvency, reorganization, receivership or similar law.

     “Company” means Diamond Resorts Parent, LLC, a Nevada limited liability company.

B-2

 

     “Comparable Junior Priority Security Document” means, in relation to any Shared
Collateral subject to any First Priority Security Document, that Junior Priority Security Document
that creates a security interest in the same Shared Collateral, granted by the same Grantor, as
applicable.

     “DIP
Financing” has the meaning assigned to such term in Section 5.2.

     “Enforcement Action” means, with respect to the First Priority Obligations or the
Junior Priority Obligations, any demand for acceleration or payment thereof, the exercise of any
rights and remedies with respect to any Shared Collateral securing such Obligations or the
commencement or prosecution of enforcement of any of the rights and remedies as a secured creditor
under, as applicable, the First Priority Documents or the Junior Priority Documents, or applicable
law, including, without limitation, the exercise of any rights of set-off or recoupment and rights
to credit bid debt, and the exercise of any rights or remedies of a secured creditor under the
Uniform Commercial Code of any applicable jurisdiction or under the Bankruptcy Code.

     “Existing First Priority Agreement” means the Indenture dated as of August 13, 2010
between the Issuer and Wells Fargo Bank, National Association, as trustee.

     “Existing Junior Priority Agreement” means [    ].

     “First Priority Agreement” means the collective reference to (a) the Existing First
Priority Agreement, (b) any Additional First Priority Agreement and (c) any other credit agreement,
loan agreement, note agreement, promissory note, indenture or other agreement or instrument
evidencing or governing the terms of any Indebtedness or other financial accommodation that has
been incurred to extend, replace, refinance or refund in whole or in part the Indebtedness and
other Obligations outstanding under the Existing First Priority Agreement, any Additional First
Priority Agreement or any other agreement or instrument referred to in this clause (c) unless such
agreement or instrument expressly provides that it is not intended to be and is not a First
Priority Agreement hereunder (a “Replacement First Priority Agreement”). Any reference to
the First Priority Agreement hereunder shall be deemed a reference to any First Priority Agreement
then extant.

     “First Priority Collateral” means all assets, whether now owned or hereafter acquired
by any Grantor, in which a Lien is granted or purported to be granted to any First Priority Secured
Party as security for any First Priority Obligation (including any Lien assigned to the First
Priority Representative pursuant to Section 2.4).

     “First Priority Documents” means the First Priority Agreement, each First Priority
Security Document, each First Priority Guarantee and any Pari Passu Intercreditor Agreement.

     “First Priority Guarantee” means any guarantee by any Grantor of any or all of the
First Priority Obligations.

     “First Priority Lien” means any Lien created by the First Priority Security
Documents.

B-3

 

     “First Priority Obligations” means all Obligations in respect of the Notes or
arising under the First Priority Documents, including all fees and expenses of the First Priority
Representative. To the extent any payment with respect to any First Priority Obligation (whether by
or on behalf of any Grantor, as proceeds of security, enforcement of any right of setoff or
otherwise) is declared to be a fraudulent conveyance or a preference in whole or in part, or is
otherwise set aside or required to be returned or paid to a debtor in possession, any Junior
Priority Secured Party, any receiver or any similar Person, then the obligation or part thereof
originally intended to be satisfied by such payment shall, for the purposes of this Agreement and
the rights and obligations of the First Priority Secured Parties and the Junior Priority Secured
Parties, be deemed to be reinstated and outstanding as if such payment had not occurred.

     “First Priority Obligations Payment Date” means the first date on which (a) the First
Priority Obligations (including any obligations replacing, renewing or refinancing any previously
existing First Priority Obligations, but other than those that constitute Unasserted Contingent
Obligations) have been indefeasibly paid in cash in full (or cash collateralized or defeased in
accordance with the terms of the First Priority Documents), (b) all commitments to extend credit
under the First Priority Documents (including any documents replacing, renewing or refinancing any
previously existing First Priority Documents) have been terminated and (c) the First Priority
Representative has delivered a written notice to the Junior Priority Representative stating that
the events described in clauses (a) and (b) have occurred, such notice not to be unreasonably
withheld.

     “First Priority Representative” has the meaning set forth in the introductory
paragraph hereof. In the case of any Replacement First Priority Agreement, the First Priority
Representative shall be the Person identified as such in such Replacement First Priority Agreement.

     “First Priority Secured Party” means each Person holding First Priority
Obligations, including the First Priority Representative.

     “First Priority Security Documents” means the “Security Documents” (as defined in the
Existing First Priority Agreement), and any other documents that are designated under the First
Priority Agreement as “First Priority Security Documents” for purposes of this Agreement;
provided that no document that is not entered into pursuant to the Existing First Priority
Agreement will constitute a First Priority Security Document unless the treatment of such document
as a First Priority Security Document is permitted under each First Priority Agreement then extant,
including, as of the date hereof and any other date if then extant, the Existing First Priority
Agreement.

     “Governmental Authority” means any federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory body.

     “Grantors” means, at any time, the Issuer, the Company and each of their respective
Subsidiaries that, at such time, has granted a security interest in any of its assets
pursuant to any First Priority Security Document to secure First Priority

B-4

 

Obligations or Junior Priority Security Document to secure Junior Priority Obligations. The
Persons that are Grantors on the date hereof are set forth on Schedule I.

     “Insolvency Proceeding” means any proceeding in respect of bankruptcy, insolvency,
winding up, receivership, dissolution, insolvency or assignment for the benefit of creditors, in
each of the foregoing events whether under the Bankruptcy Code or any other Bankruptcy Law.

     “Issuer” has the meaning assigned to such term in the preamble hereto.

     “Junior Priority Agreement” means the collective reference to (a) the Existing Junior
Priority Agreement, (b) any Additional Junior Priority Agreement and (c) any other credit
agreement, loan agreement, note agreement, promissory note, indenture, or other agreement or
instrument evidencing or governing the terms of any Indebtedness or other financial accommodation
that has been incurred to extend, replace, refinance or refund in whole or in part the Indebtedness
and other obligations outstanding under the Existing Junior Priority Agreement, any Additional
Junior Priority Agreement or any other agreement or instrument referred to in this clause (c). Any
reference to the Junior Priority Agreement hereunder shall be deemed a reference to any Junior
Priority Agreement then extant.

     “Junior Priority Collateral” means all assets, whether now owned or hereafter acquired
by the Company or any other Grantor, in which a Lien is granted or purported to be granted to any
Junior Priority Secured Party as security for any Junior Priority Obligation.

     “Junior Priority Documents” means each Junior Priority Agreement, each Junior Priority
Security Document and each Junior Priority Guarantee.

     “Junior Priority Guarantee” means any guarantee by any Grantor of any or all of the
Junior Priority Obligations.

     “Junior Priority Lien” means any Lien created by the Junior Priority Security
Documents.

     “Junior Priority Obligations” means all Obligations in respect of [ ] or arising
under the Junior Priority Documents, including all fees and expenses of the Junior Priority
Representative. To the extent any payment with respect to any Junior Priority Obligation (whether
by or on behalf of any Grantor, as proceeds of security, enforcement of any right of setoff or
otherwise) is declared to be a fraudulent conveyance or a preference in whole or in part, or is
otherwise set aside or required to be returned or paid to a debtor in possession, any First
Priority Secured Party, any receiver or any similar Person, then the obligation or part thereof
originally intended to be satisfied shall, for the purposes of this Agreement and the rights and
obligations of the First Priority Secured Parties and the Junior Priority Secured Parties, be
deemed to be reinstated and outstanding as if such payment had not occurred.

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     “Junior Priority Representative” has the meaning set forth in the preamble
hereto, but shall also include any Person identified as a “Junior Priority Representative” in any
Junior Priority Agreement other than the Existing Junior Priority Agreement.

     “Junior Priority Secured Party” means each Person holding Junior Priority
Obligations, including the Junior Priority Representative.

     “Junior Priority Security Documents” means the “[ ]” as defined in the
Existing Junior Priority Agreement and any documents that are designated under the Junior
Priority Agreement as “[ ]” for purposes of this Agreement.

     “Notes” means any notes issued under the Existing First Priority Agreement.

     “Person” means any individual, corporation, partnership, limited liability company,
joint venture, association, joint-stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other entity.

     “Post-Petition Interest” means any interest or entitlement to fees or expenses or
other charges that accrues after the commencement of any Insolvency Proceeding, whether or not
allowed or allowable as a claim in any such Insolvency Proceeding.

     “Recovery” has the meaning assigned to such term in Section 5.5.

     “Reorganization Securities” has the meaning assigned to such term in
Section 5.12.

     “Replacement First Priority Agreement” has the meaning set forth in the
definition of “First Priority Agreement”.

     “Secured Parties” means the First Priority Secured Parties and the Junior Priority Secured
Parties.

     “Shared Collateral” means all assets that are both First Priority Collateral and
Junior Priority Collateral.

     “Trustee” means Wells Fargo Bank, National Association, solely in its capacity as Trustee
under the Existing First Priority Agreement.

     “Unasserted Contingent Obligations” means, at any time, First Priority Obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities (excluding (a) the
principal of, and interest and premium (if any) on, and fees and expenses relating to, any First
Priority Obligation and (b) contingent reimbursement obligations in respect of amounts that may be
drawn under outstanding letters of credit or similar instruments) in respect of which no assertion
of liability (whether oral or written) and no claim or demand for payment (whether oral or written)
has been made (and, in the case of First Priority Obligations for indemnification, no notice for
indemnification has been issued by the indemnitee) at such time.

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     “Uniform
Commercial Code” or “UCC” means the Uniform Commercial Code as in
effect from time to time in the applicable jurisdiction.

     1.2 Amended Agreements. All references in this Agreement to agreements or other
contractual obligations shall, unless otherwise specified, be deemed to refer to such agreements or
contractual obligations as amended, amended and restated, supplemented, restated or otherwise
modified from time to time in accordance with the terms of this Agreement, if applicable.

     1.3 Terms Generally. The definitions in this Section shall apply equally to both the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. All references
herein to Sections shall be deemed references to Sections of this Agreement unless the context
shall otherwise require.

     SECTION 2. Lien Priorities.

     2.1 Subordination of Liens. (a) Any and all Liens in the Shared Collateral now
existing or hereafter created or arising in favor of any Junior Priority Secured Party securing the
Junior Priority Obligations, regardless of how acquired, whether by grant, statute, operation of
law, judgment rendered in any judicial proceeding, subrogation or otherwise, are expressly junior
in priority, operation and effect to any and all Liens now existing or hereafter created or arising
in favor of the First Priority Secured Parties securing the First Priority Obligations,
notwithstanding (i) anything to the contrary contained in any agreement or filing to which any
Junior Priority Secured Party may now or hereafter be a party, and regardless of the time, order or
method of grant, attachment, recording or perfection of any financing statements or other security
interests, assignments, pledges, deeds, mortgages and other Liens, charges or encumbrances or any
defect or deficiency or alleged defect or deficiency in any of the foregoing, (ii) any provision of
the Uniform Commercial Code or any other applicable law or any First Priority Document or Junior
Priority Document or any other circumstance whatsoever and (iii) the fact that any such Liens in
favor of any First Priority Secured Party securing any of the First Priority Obligations are (x)
subordinated to any Lien securing any obligation of any Grantor other than the Junior Priority
Obligations or (y) otherwise subordinated, voided, avoided, invalidated or lapsed.

     (b) No Junior Priority Secured Party shall object to or contest, or support any other Person
in objecting to or contesting, in any proceeding (including, without limitation, any Insolvency
Proceeding), the validity, extent, perfection, priority or enforceability of any Lien on the First
Priority Collateral granted to any First Priority Secured Party. Notwithstanding any failure by any
First Priority Secured Party to perfect its Lien on the First Priority Collateral granted to such
First Priority Secured Party or any avoidance, invalidation or subordination by any third party or
court of competent jurisdiction of the Lien on the First Priority Collateral granted to the First
Priority Secured Parties, the priority and rights as between the First Priority Secured Parties, on

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the one hand, and the Junior Priority Secured Parties, on the other hand, with respect to
the Shared Collateral shall be as set forth herein.

     2.2 Nature of First Priority Obligations. The Junior Priority Representative on behalf
of itself and the Junior Priority Secured Parties acknowledges that the terms of the First Priority
Obligations may be modified, extended or amended from time to time, and that the aggregate amount
of the First Priority Obligations may be increased, replaced or refinanced, in each event, without
notice to or consent by the Junior Priority Secured Parties and without affecting the provisions
hereof. The lien priorities provided in Section 2.1 shall not be altered or otherwise affected by
any such amendment, modification, supplement, extension, repayment, reborrowing, increase,
replacement, renewal, restatement or refinancing of the First Priority Obligations, or any portion
thereof, or by any amendment, modification, supplement, extension, repayment, reborrowing,
increase, replacement, renewal, restatement or refinancing of the Junior Priority Obligations, or
any portion thereof.

     2.3 Agreements Regarding Actions to Perfect Liens. (a) The Junior Priority
Representative on behalf of itself and the Junior Priority Secured Parties agrees that UCC-1
financing statements, patent, trademark or copyright filings or other filings or recordings filed
or recorded by or on behalf of the Junior Priority Representative shall be in form satisfactory to
the First Priority Representative.

     (b) The Junior Priority Representative agrees on behalf of itself and the Junior Priority
Secured Parties that all Junior Priority Security Documents entered into on or about the date
hereof shall contain the following notation: “The lien and security interest created by [this
Agreement] on the property described herein is junior and subordinate, in accordance with the
provisions of the Junior Lien Intercreditor Agreement dated as of
[ ], among [ ], [ ], Diamond Resorts Corporation and the other Grantors referred to therein,
as amended from time to time, to the lien and security interest on such property created by any
similar instrument now or hereafter granted to [ ], as collateral agent under the First Priority
Documents, and its successors and assigns, in such property.” The Junior Priority Representative
agrees on behalf of itself and the Junior Priority Secured Parties that all other Junior Priority
Security Documents shall bear an identical or, in the event that the Existing First Priority
Agreement is no longer extant or [ ] shall cease to be the First Priority Representative, a
substantially similar notation.

     (c) The First Priority Representative hereby agrees that, to the extent that it holds, or a
third party holds on its behalf, physical possession of or “control” (as defined in the Uniform
Commercial Code) (or any similar concept under foreign law) over Shared Collateral pursuant to the
First Priority Security Documents, such possession or control is also for the benefit of the Junior
Priority Representative and the Junior Priority Secured Parties solely to the extent required to
perfect their security interest in such Shared Collateral (such bailment being intended, among
other things, to satisfy the requirements of Sections 8-106(d)(3), 8-301(a)(2) and 9-313(c) of the
Uniform Commercial Code). Nothing in the preceding sentence shall be construed to impose any duty
on the First Priority Representative (or any third party acting on its behalf) with respect to such
Shared Collateral or provide the Junior Priority Representative or any Junior Priority

B-8

 

Secured Party with any rights with respect to such Shared Collateral beyond those specified
in this Agreement and the Junior Priority Security Documents; provided that subsequent to
the occurrence of the First Priority Obligations Payment Date, the First Priority Representative
shall (i) deliver to the Junior Priority Representative, at the Issuer’s sole cost and expense, the
Shared Collateral in its possession or control together with any necessary endorsements to the
extent required by the Junior Priority Documents or (ii) direct and deliver such Shared Collateral
as a court of competent jurisdiction otherwise directs; provided, however, that the
provisions of this Agreement are intended solely to govern the respective Lien priorities as
between the First Priority Secured Parties and the Junior Priority Secured Parties and shall not
impose on the First Priority Secured Parties any obligations in respect of the disposition of any
Shared Collateral (or any proceeds thereof) that would conflict with prior perfected Liens or any
claims thereon in favor of any other Person that is not a Secured Party.

     2.4 No New Liens. So long as the First Priority Obligations Payment Date has not
occurred, the parties hereto agree that (a) there shall be no Lien, and no Grantor shall have any
right to create any Lien, on any assets of any Grantor securing any Junior Priority Obligation if
those same assets are not subject to, and do not become subject to, a Lien securing the First
Priority Obligations and (b) if any Junior Priority Secured Party shall acquire or hold any Lien on
any assets of any Grantor securing any Junior Priority Obligation, which assets are not also
subject to the first-priority Lien of the First Priority Representative under the First Priority
Documents, then the Junior Priority Representative shall be deemed to also hold and have held such
Lien for the benefit of the First Priority Secured Parties and shall promptly notify the First
Priority Representative of the existence of such Lien and, upon demand by the First Priority
Representative, will without the need for any further consent of any Junior Priority Secured Party,
notwithstanding anything to the contrary in any other Junior Priority Document, either (i) release
such Lien or (ii) assign it to the First Priority Representative as security for the First Priority
Obligations (in which case the Junior Priority Representative may retain a junior lien on such
assets subject to the terms hereof). To the extent that the foregoing provisions are not complied
with for any reason, without limiting any other rights and remedies available to the First Priority
Secured Parties, the Junior Priority Representative and the Junior Priority Secured Parties agree
that any amounts received by or distributed to any of them pursuant to or as a result of Liens
granted in contravention of this Section 2.4 shall be subject to Section 4.1.

     2.5 No Duties of First Priority Representative. Neither the First Priority
Representative nor any First Priority Secured Party will have any duties or other obligations to
any Junior Priority Secured Party with respect to the Shared Collateral, other than, in the case of
the First Priority Representative, to transfer to the Junior Priority Representative any such
Shared Collateral in which the Junior Priority Representative continues to hold a security interest
and that is remaining following (x) any sale, transfer or other disposition of such Shared
Collateral (in each case, unless the Lien securing the Junior Priority Obligations on all such
Shared Collateral is terminated and released prior to or concurrently with such sale, transfer,
disposition, payment or satisfaction) and (y) the payment and satisfaction in full of such First
Priority Obligations and termination of any commitment to extend credit that would constitute such
First

B-9

 

Priority Obligations, or to the extent the First Priority Representative is in possession of any
part of such Shared Collateral after such payment and satisfaction in full and termination, the
part thereof remaining, in each case without representation or warranty on the part of the First
Priority Representative or any holder of First Priority Obligations. Without limiting the
foregoing, neither the First Priority Representative nor any holder of any First Priority
Obligations will have any duty or obligation to marshal or realize upon the Shared Collateral, or
to sell, dispose or otherwise liquidate all or any portion of the Shared Collateral, in any manner
that would maximize the return to the Junior Priority Secured Parties notwithstanding that the
order and timing of any such realization, sale, disposition or liquidation may affect the amount of
the proceeds actually received by the Junior Priority Secured Parties from such realization, sale,
disposition or liquidation. The Junior Priority Representative, for itself and on behalf of each
Junior Priority Secured Party, waives any claim the Junior Priority Representative or such Junior
Priority Secured Party may now or hereafter have against the First Priority Representative or any
First Priority Secured Party (or their representatives) arising out of any actions which the First
Priority Representative or the First Priority Secured Parties take or omit to take (including
actions with respect to the creation, perfection or continuation of Liens on any Shared Collateral,
actions with respect to the foreclosure upon, sale, release or depreciation of, or failure to
realize upon, any of the Shared Collateral and actions with respect to the collection of any claim
for all or any part of the First Priority Obligations from any account debtor, guarantor or any
other party) in accordance with the First Priority Security Documents or any other agreement
related thereto or to the collection of the First Priority Obligations or the valuation, use,
protection or release of any Shared Collateral.

     2.6 Further Assurances. Each of the First Priority Representative, for itself and
on behalf of the First Priority Secured Parties, and the Junior Priority Representative, for itself
and on behalf of the Junior Priority Secured Parties, and each Grantor party hereto, for itself and
on behalf of its subsidiaries, agrees that it will execute, or will cause to be executed, any and
all further documents, agreements and instruments, and take all such further actions, as may be
required under any applicable law, or which the First Priority Representative or the Junior
Priority Representative may reasonably request, to effectuate the terms of this Agreement,
including the relative Lien priorities provided for herein.

     SECTION 3. Enforcement Rights.

     3.1 Exclusive Enforcement. Until the First Priority Obligations Payment Date has
occurred, whether or not an Insolvency Proceeding has been commenced by or against any Grantor, the
First Priority Secured Parties shall have the exclusive right to take and continue any Enforcement
Action and make determinations regarding the release, dispositions or restrictions with respect to
the Shared Collateral, without any consultation with or consent of any Junior Priority Secured
Party, but subject to the proviso set forth in Section 5.1. In exercising rights and remedies with
respect to the Shared Collateral, the First Priority Secured Parties may enforce the provisions of
the First Priority Documents and exercise remedies thereunder, all in such order and in such manner
as they may determine in the exercise of their sole discretion. Such exercise and

B-10

 

enforcement shall include the rights of an agent appointed by any of them to sell or otherwise
dispose of the Shared Collateral upon foreclosure, to incur expenses in connection with such sale
or disposition, and to exercise all rights and remedies of a secured creditor under the Uniform
Commercial Code and of a secured creditor under the Bankruptcy Law of any applicable jurisdiction.

     3.2 Standstill and Waivers. The Junior Priority Representative, on behalf of
itself and the Junior Priority Secured Parties, agrees that, until the First Priority Obligations
Payment Date has occurred, subject to the proviso set forth in Section 5.1:

     (a) they will not take or cause to be taken any action, the purpose or effect of which
is, or could be, to make any Lien in respect of any Junior Priority
Obligation pari passu with or senior to, or to give any Junior Priority Secured Party any preference or
priority relative to, the Liens with respect to the First Priority Obligations or the First
Priority Secured Parties with respect to any of the Shared Collateral;

     (b) they will not challenge or question in any proceeding the validity or
enforceability of any security interest in the Shared Collateral in favor of any First
Priority Obligations, the validity, attachment, perfection or priority of any First Priority
Lien or the validity or enforceability of the priorities, rights or duties established by
(or other provisions of) this Agreement;

     (c) they will not contest, oppose, object to, interfere with, challenge, hinder or
delay, in any manner, whether by judicial proceedings (including the filing of an Insolvency
Proceeding) or otherwise, any foreclosure, sale, lease, exchange, transfer or other
disposition of the Shared Collateral or any other First Priority Collateral by any First
Priority Secured Party or any other Enforcement Action taken (or any forbearance from taking
any Enforcement Action) by or on behalf of any First Priority Secured Party;

     (d) they have no right to (i) direct either the First Priority Representative or any
First Priority Secured Party to exercise any right, remedy or power with respect to the
Shared Collateral or pursuant to the First Priority Security Documents or (ii) consent or
object to the exercise by the First Priority Representative or any First Priority Secured
Party of any right, remedy or power with respect to the Shared Collateral or pursuant to the
First Priority Security Documents or to the timing or manner in which any such right is
exercised or not exercised (or, to the extent they may have any such right described in this
clause (d), whether as a junior lien creditor or otherwise, they hereby irrevocably waive
such right);

     (e) they will not object to the forbearance by the First Priority Secured Parties from
bringing or pursuing any foreclosure proceeding or action or any other exercise of any
rights or remedies relating to the Shared Collateral or any other First Priority Collateral;

B-11

 

     (f) they will not oppose or seek to challenge any claim by any First Priority Secured
Party for allowance in any judicial or Insolvency Proceedings consisting of post-petition
interest, fees or expenses (it being understood that the First Priority Secured Parties
will not contest any similar action by any Junior Priority Secured Party);

     (g) they will not institute any suit or other proceeding or assert in any suit,
Insolvency Proceeding or other proceeding any claim against any First Priority Secured
Party seeking damages from or other relief by way of specific performance, instructions or
otherwise, with respect to, and no First Priority Secured Party shall be liable for, any
action taken or omitted to be taken by any First Priority Secured Party with respect to the
Shared Collateral or pursuant to the First Priority Documents;

     (h) they will not make any judicial or nonjudicial claim or demand or commence any
judicial or non-judicial proceedings against any Grantor or any of its subsidiaries or
affiliates under or with respect to any Junior Priority Security Document seeking payment
or damages from or other relief by way of specific performance, instructions or otherwise
under or with respect to any Junior Priority Security Document or exercise any right,
remedy or power under or with respect to, or otherwise take any action to enforce, any
Junior Priority Security Document;

     (i) they will not commence judicial or nonjudicial foreclosure proceedings with
respect to, seek to have a trustee, receiver, liquidator or similar official appointed for
or over, or attempt any action to take possession of any Shared Collateral, or exercise any
right, remedy or power with respect to, or otherwise take any action to enforce their
interest in or realize upon, the Shared Collateral or pursuant to the Junior Priority
Security Documents;

     (j) they will not seek, and hereby waive any right, to have the Shared Collateral or
any part thereof marshaled upon any foreclosure or other disposition of the Shared
Collateral and hereby waive, to the fullest extent permitted by law, any right to demand,
request, plead or otherwise assert or claim the benefit of, any marshalling, appraisal,
valuation or other similar right that may otherwise be available under applicable law with
respect to the Shared Collateral or any other similar rights a junior secured creditor may
have under applicable law; and

     (k) they will not attempt, directly or indirectly, whether by judicial proceedings or
otherwise, to challenge the enforceability of any provision of this Agreement.

     3.3 Judgment Creditors. In the event that any Junior Priority Secured Party
becomes a judgment lien creditor as a result of its enforcement of its rights as an unsecured
creditor, such judgment lien shall be subject to the terms of this Agreement for all purposes
(including in relation to the First Priority Liens and the First Priority

B-12

 

Obligations) to the same extent as all other Liens securing the Junior Priority Obligations are
subject to the terms of this Agreement.

     3.4 Cooperation. The Junior Priority Agent, on behalf of itself and the Junior
Priority Secured Parties, agrees that each of them shall take such actions as the First Priority
Representative shall request in connection with the exercise by the First Priority Secured Parties
of their rights set forth herein.

     3.5 No Additional Rights For the Grantors Hereunder. Except as provided in Section
3.6, if any First Priority Secured Party or Junior Priority Secured Party shall enforce its rights
or remedies in violation of the terms of this Agreement, no Grantor shall be entitled to use such
violation as a defense to any action by any First Priority Secured Party or Junior Priority Secured
Party, or to assert such violation as a counterclaim or basis for set off or recoupment against any
First Priority Secured Party or Junior Priority Secured Party.

     3.6 Actions Upon Breach. (a) If any Junior Priority Secured Party, contrary to this
Agreement, commences or participates in any action or proceeding against any Grantor or the Shared
Collateral, such Grantor, with the prior written consent of the First Priority Representative, may
interpose as a defense or dilatory plea the making of this Agreement, and any First Priority
Secured Party may intervene and interpose such defense or plea in its or their name or in the name
of such Grantor.

     (b) Should any Junior Priority Secured Party, contrary to this Agreement, in any way take,
attempt to take or threaten to take any action with respect to the Shared Collateral (including any
attempt to realize upon or enforce any remedy with respect to this Agreement), or take any other
action in violation of this Agreement, or fail to take any action required by this Agreement, this
Agreement shall create an irrebuttable presumption and admission by such Junior Priority Secured
Party that any First Priority Secured Party (in its own name or in the name of the relevant
Grantor) or the relevant Grantor may obtain relief against such Junior Priority Secured Party by
injunction, specific performance and/or other appropriate equitable relief, it being understood and
agreed by the Junior Priority Representative on behalf of each Junior Priority Secured Party that
(i) the First Priority Secured Parties’ damages from such actions of any Junior Priority Secured
Party may at that time be difficult to ascertain and may be irreparable and the harm to the First
Priority Secured Parties may not be adequately compensated in damages and (ii) each Junior Priority
Secured Party waives any defense that the Grantors and/or the First Priority Secured Parties cannot
demonstrate damage and/or be made whole by the awarding of damages.

     SECTION 4. Application of Proceeds of Shared Collateral; Dispositions and Releases
of Shared Collateral; Inspection and Insurance.

     4.1
Application of Proceeds; Turnover Provisions. All proceeds of Shared
Collateral (including any interest earned thereon) resulting from the sale, collection or other
disposition of Shared Collateral resulting from any Enforcement Action or that occurs after any
Event of Default (as defined in the First Priority Documents), whether or

B-13

 

not pursuant to an Insolvency Proceeding, or during the pendency of any Insolvency Proceeding shall
be distributed as follows: first to the First Priority Representative for application to
the First Priority Obligations in accordance with the terms of the First Priority Documents, until
the First Priority Obligations Payment Date has occurred and
thereafter, to the Junior
Priority Representative for application in accordance with the terms of the Junior Priority
Documents. If any Junior Priority Secured Party obtains possession of the Shared Collateral or
realizes any proceeds or payment in respect of the Shared Collateral, pursuant to any Junior
Priority Security Documents or by the exercise of any rights available to such Junior Priority
Secured Party under applicable law or in any Insolvency Proceeding or through any other exercise of
remedies, at any time when any First Priority Obligations secured or intended to be secured by such
Shared Collateral remains outstanding or any commitment to extend credit that would constitute
First Priority Obligations secured or intended to be secured by such Shared Collateral remains in
effect, then such Junior Priority Secured Party will hold such Shared Collateral, proceeds or
payments in trust for the First Priority Representative and the holders of any First Priority
Obligations and transfer such Shared Collateral, proceeds or payments, as the case may be, to the
First Priority Representative. If, at any time, all or part of any payment with respect to any
First Priority Obligations previously made are rescinded for any reason whatsoever, each Junior
Priority Secured Party will promptly pay over to the First Priority Representative any payment
received by it in respect of any such Shared Collateral and shall promptly turn any such Shared
Collateral then held by it over to the First Priority Representative, and the provisions set forth
in this Agreement shall be reinstated as if such payment had not been made, until the payment and
satisfaction in full all of such First Priority Obligations.

     4.2 Releases of Junior Priority Lien. (a) Upon (i) any sale or other disposition
of Shared Collateral permitted pursuant to the terms of the First Priority Documents that results
in the release of the First Priority Lien on any Shared Collateral (including any sale or other
disposition pursuant to any Enforcement Action) or (ii) any other release of Shared Collateral from
the Lien under the First Priority Security Documents that is permitted pursuant to the terms of the
First Priority Documents, the Junior Priority Lien on such Shared Collateral (excluding any portion
of the proceeds of such Shared Collateral remaining after the First Priority Obligations Payment
Date occurs) shall be automatically and unconditionally released with no further consent or action
of any Person.

     (b) The Junior Priority Representative shall promptly execute and deliver such release
documents and instruments and shall take such further actions as the First Priority Representative
shall request to evidence any release of the Junior Priority Lien described in paragraph (a). The
Junior Priority Representative hereby appoints the First Priority Representative and any officer or
duly authorized person of the First Priority Representative, with full power of substitution, as
its true and lawful attorney-in-fact with full irrevocable power of attorney in the place and stead
of the Junior Priority Representative and in the name of the Junior Priority Representative or in
the First Priority Representative’s own name, from time to time, in the First Priority
Representative’s sole discretion, for the purposes of carrying out the terms of this Section 4.2,
to take any and all appropriate action and to execute and deliver any and all

B-14

 

documents and instruments as may be necessary or desirable to accomplish the purposes of this
Section 4.2, including any financing statements, endorsements, assignments, releases or other
documents or instruments of transfer (which appointment, being coupled with an interest, is
irrevocable).

     4.3 Inspection Rights and Insurance. (a) Any First Priority Secured Party and its
representatives and invitees may at any time inspect, repossess, remove and otherwise deal with the
Shared Collateral, and the First Priority Representative may advertise and conduct public auctions
or private sales of the Shared Collateral, in each case without notice to, the involvement of or
interference by any Junior Priority Secured Party or liability to any Junior Priority Secured
Party.

     (b) Until the First Priority Obligations Payment Date has occurred, the First Priority
Representative will have the sole and exclusive right (i) to be named as additional insured and
loss payee under any insurance policies maintained from time to time by any Grantor (except that
the Junior Priority Representative shall have the right to be named as additional insured and loss
payee so long as its second lien status is identified in a manner satisfactory to the First
Priority Representative), (ii) to adjust or settle any insurance policy or claim covering the
Shared Collateral in the event of any loss thereunder and (iii) to approve any award granted in any
condemnation or similar proceeding affecting the Shared Collateral.

     4.4 Rights as Unsecured Creditors. Notwithstanding anything to the contrary in this
Agreement, the Junior Priority Representative and the Junior Priority Secured Parties may exercise
rights and remedies as unsecured creditors against any Grantor in respect of the Junior Priority
Obligations in accordance with the terms of the Junior Priority Documents, including the
acceleration of any Indebtedness or other obligations owing under the Junior Priority Documents or
the demand for payment under the guarantee in respect thereof, in each case in accordance with the
terms of the applicable Junior Priority Documents and applicable law and not otherwise inconsistent
with the terms of this Agreement. Nothing in this Agreement shall prohibit the receipt by any
Junior Priority Representative or any Junior Priority Secured Party of the required payments of
interest and principal so long as such receipt is not the direct or indirect result of (a) the
exercise by any Junior Priority Representative or any Junior Priority Secured Party of rights or
remedies as a secured creditor in respect of Shared Collateral or other collateral or (b) the
enforcement in contravention of this Agreement of any Lien in respect of Junior Priority Liens held
by any of them. Nothing in this Agreement impairs or otherwise adversely affects any rights or
remedies the First Priority Representative or the First Priority Secured Parties may have with
respect to the First Priority Collateral.

     SECTION 5. Insolvency Proceedings.

     5.1 Filing of Motions. Until the First Priority Obligations Payment Date has
occurred, the Junior Priority Representative agrees on behalf of itself and the Junior Priority
Secured Parties that no Junior Priority Secured Party shall, in or in connection with any
Insolvency Proceeding, file any pleading or motion, take any position at any

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hearing or proceeding of any nature, or otherwise take any action whatsoever, in each case in
respect of any of the Shared Collateral, including with respect to the determination of any Liens
or claims (including the validity and enforceability thereof) held by the First Priority
Representative or any First Priority Secured Party or the value of any claims of such parties under
Section 506(a) of the Bankruptcy Code or otherwise; provided that (a) in any Insolvency
Proceeding, the Junior Priority Representative may file a proof of claim or statement of interest
with respect to the applicable Junior Priority Liens, (b) the Junior Priority Representative may
take any such action (not adverse to the First Priority Liens on the Shared Collateral securing the
First Priority Obligations, or the rights of either the First Priority Representative or the First
Priority Secured Parties to exercise remedies in respect thereof) to the extent required to create,
prove, perfect, preserve or protect (but not enforce) its rights in, and perfection and priority of
its Liens on, the Shared Collateral, (c) in any Insolvency Proceeding, the Junior Priority
Representative may file any necessary or responsive pleading in opposition to any motion, adversary
proceeding or other pleading filed by any Person objecting to or otherwise seeking disallowance of
the claim or Lien of such Junior Priority Representative or any Junior Priority Secured Party, (d)
the Junior Priority Representative may file any pleadings, objections, motions, or agreements which
assert rights available to unsecured creditors arising under any Insolvency Proceeding or
applicable non-bankruptcy law, and (e) the Junior Priority Representative and each Junior Priority
Secured Party may vote on any plan of reorganization in any
Insolvency Proceedings; provided, however, that in the case of each of clauses (a), (b), (c), (d) and (e) above, such actions are
permitted only to the extent such actions are not inconsistent with, and could not result in a
resolution inconsistent with, the terms of this Agreement.

     5.2 Financing Matters. If any Grantor becomes subject to any Insolvency
Proceeding, and if the First Priority Representative (acting at the direction of the requisite
First Priority Secured Parties) desires to permit the use of cash collateral or to permit any
Grantor to obtain financing under Section 363 or Section 364 of Title 11 of the United States Code
or any similar provision in any Bankruptcy Law (“DIP
Financing”), then the Junior Priority
Representative, for itself and on behalf of each applicable Junior Priority Secured Party, agrees
that it will raise no objection to, and will not support any objection to, and will not otherwise
contest such use of cash collateral or DIP Financing and will not request adequate protection or
any other relief in connection therewith (except to the extent permitted by Section 5.4) and, to
the extent the Liens securing the First Priority Obligations are subordinated or pari passu with
such DIP Financing, will subordinate the Liens in the Shared Collateral in favor of the Junior
Priority Obligations to such DIP Financing (and all Obligations relating thereto) on the same basis
as they are subordinated to the First Priority Obligations. The Junior Priority Representative, for
itself and on behalf of each Junior Priority Secured Party, agrees that, in the event of an
Insolvency Proceeding, it will raise no objection to, and will not support any objection to, and
will not otherwise contest (a) any motion for relief from the automatic stay or from any injunction
against foreclosure or enforcement in respect of First Priority Obligations made by the First
Priority Representative or any First Priority Secured Party, (b) any lawful exercise by the First
Priority Representative or any other First Priority Secured Party of the right to credit bid any
First Priority Obligations at any sale in foreclosure of First Priority Collateral, (c) any other
request for judicial relief made in any court by the

B-16

 

First Priority Representative or any other First Priority Secured Party relating to the lawful
enforcement of any First Priority Lien and (d) any order relating to a sale of assets of any
Grantor for which the First Priority Representative has consented that provides, to the extent the
sale is to be free and clear of Liens, that the Liens securing the First Priority Obligations and
the Second Priority Obligations will attach to the proceeds of the sale on the same basis of
priority as the existing Liens in accordance with this Agreement.

     5.3 Relief From the Automatic Stay. The Junior Priority Representative agrees, on
behalf of itself and the Junior Priority Secured Parties, that none of them will seek relief from
the automatic stay or from any other stay in any Insolvency Proceeding or take any action in
derogation thereof, in each case in respect of any Shared Collateral, without the prior written
consent of the First Priority Representative and the Holders of at least a majority in principal
amount of the Notes.

     5.4 Adequate Protection. The Junior Priority Representative, on behalf of itself and
the Junior Priority Secured Parties, agrees that none of them shall object to, contest, or support
any other Person objecting to or contesting (a) any request by the First Priority Representative or
the First Priority Secured Parties for adequate protection or any adequate protection provided to
the First Priority Representative or the First Priority Secured Parties or (b) any objection by the
First Priority Representative or any First Priority Secured Parties to any motion, relief, action
or proceeding based on a claim of a lack of adequate protection or (c) the payment of interest,
fees, expenses, costs, charges or other amounts to the First Priority Representative or any First
Priority Secured Party under Section 506(b) or 506(c) of the Bankruptcy Code or otherwise.
Notwithstanding anything contained in this Section 5.4 and in Section 5.2(b) (but subject to all
other provisions of this Agreement, including Sections 5.2(a) and 5.3), in any Insolvency
Proceeding, (i) if the First Priority Secured Parties (or any subset thereof) are granted adequate
protection that includes additional collateral (with replacement Liens on such additional
collateral) in connection with any DIP Financing or use of cash collateral, then in connection with
any such DIP Financing or use of cash collateral the Junior Priority Representative, on behalf of
itself and any of the Junior Priority Secured Parties, may seek or accept adequate protection
consisting solely of a replacement Lien on the same additional collateral, subordinated to the
Liens securing (x) such DIP Financing on the same terms as the First Priority Liens are
subordinated thereto (and such subordination will not alter in any manner the terms of this
Agreement), and (y) the First Priority Obligations on the same basis as the other Liens securing
the Junior Priority Obligations are so subordinated to the First Priority Obligations under this
Agreement and (ii) in the event the Junior Priority Representative, on behalf of itself and the
Junior Priority Secured Parties, seeks or accepts adequate protection in accordance with clause (i)
above in the form of additional collateral, then the Junior Priority Representative, on behalf of
itself or any of the Junior Priority Secured Parties, agrees that the First Priority Representative
shall also be granted a senior Lien on such additional collateral as security for the First
Priority Obligations and any such DIP Financing and that any Lien on such additional collateral
securing the Junior Priority Obligations shall be subordinated to (A) the Liens on such collateral
securing the First Priority Obligations and any other Liens granted to the First Priority Secured
Parties as adequate protection on the same terms that

B-17

 

the Liens securing the Junior Priority Obligations are subordinated to such First Priority
Obligations under this Agreement and (B) (x) the Liens on such collateral securing such DIP
Financing (and all obligations relating thereto), (y) any “carve-out” agreed to by the First
Priority Representative or the First Priority Secured Parties and (z) in the case of any Insolvency
Proceeding outside the United States, any administrative or other charges granted in any Insolvency
Proceeding that are similar in nature to a “carve-out” and agreed to by the First Priority
Representative or the First Priority Secured Parties, in the case of each of clauses (B) (x), (y)
and (z), with such subordination to be on the same terms as the Liens securing the First Priority
Obligations are subordinated thereto (and such subordination will not alter in any manner the terms
of this Agreement). The Junior Priority Representative, on behalf of itself and the Junior Priority
Secured Parties, agrees that except as expressly set forth in this Section 5.4, and except for
adequate protection in the form of access to information to the extent such access is also made
available to the First Priority Representative on behalf of itself and the First Priority Secured
Parties, none of them shall seek or accept adequate protection without the prior written consent of
the First Priority Representative.

     5.5 Avoidance Issues. If any First Priority Secured Party is required in any
Insolvency Proceeding or otherwise to disgorge, turn over or otherwise pay to the bankruptcy
trustee or the estate of any Grantor, because such amount was avoided or ordered to be paid or
disgorged for any reason, including because it was found to be a fraudulent or preferential
transfer, any amount (a “Recovery”), whether received as proceeds of security, enforcement of any
right of set-off or otherwise, then the First Priority Obligations shall be reinstated to the
extent of such Recovery and deemed to be outstanding as if such payment had not occurred and the
First Priority Obligations Payment Date, if it shall otherwise have occurred, shall be deemed not
to have occurred. If this Agreement shall have been terminated prior to such Recovery, this
Agreement shall be reinstated in full force and effect, and such prior termination shall not
diminish, release, discharge, impair or otherwise affect the obligations of the parties hereto. The
Junior Priority Secured Parties agree that none of them shall be entitled to benefit from any
avoidance action affecting or otherwise relating to any distribution or allocation made in
accordance with this Agreement, whether by preference or otherwise, it being understood and agreed
that the benefit of such avoidance action otherwise allocable to them shall instead be allocated
and turned over for application in accordance with the priorities set forth in this Agreement.

     5.6 Asset Dispositions in an Insolvency Proceeding. Neither the Junior Priority
Representative nor any Junior Priority Secured Party shall, in an Insolvency Proceeding or
otherwise, oppose any sale or other disposition of any assets of any Grantor that is supported by
the First Priority Secured Parties, and the Junior Priority Representative and each Junior Priority
Secured Party will be deemed to have consented under Section 363 of the Bankruptcy Code (and
otherwise) to any such sale or other disposition of assets supported by the First Priority Secured
Parties and to have released their Liens on such assets; provided, to the extent such sale
is to be free and clear of Liens, that the Liens securing the First Priority Obligations and the
Junior Priority Obligations will attach to the proceeds of the sale on the same basis of priority
as the Liens released on the assets sold.

B-18

 

     5.7 Separate Grants of Security and Separate Classification. Each Junior Priority
Secured Party acknowledges and agrees that (a) the grants of Liens pursuant to the First Priority
Security Documents and the Junior Priority Security Documents constitute two separate and distinct
grants of Liens and (b) because of, among other things, their differing rights in the Shared
Collateral, the Junior Priority Obligations are fundamentally different from the First Priority
Obligations and must be separately classified in any plan of reorganization proposed or adopted in
an Insolvency Proceeding. To further effectuate the intent of the parties as provided in the
immediately preceding sentence, if it is held that the claims of the First Priority Secured Parties
and Junior Priority Secured Parties in respect of the Shared Collateral constitute only one class
of secured claims (rather than separate classes of senior and junior secured claims), then the
Junior Priority Secured Parties hereby acknowledge and agree that all distributions shall be made
as if there were separate classes of senior and junior secured claims against the Grantors in
respect of the Shared Collateral (with the effect being that, to the extent that the aggregate
value of the Shared Collateral is sufficient (for this purpose ignoring all claims held by the
Junior Priority Secured Parties), the First Priority Secured Parties shall be entitled to receive,
in addition to amounts distributed to them in respect of principal, pre-petition interest and other
claims, all amounts owing in respect of Post-Petition Interest before any distribution is made in
respect of the claims held by the Junior Priority Secured Parties, with the Junior Priority Secured
Parties hereby acknowledging and agreeing to turn over to the First Priority Secured Parties
amounts otherwise received or receivable by them to the extent necessary to effectuate the intent
of this sentence, even if such turnover has the effect of reducing the claim or recovery of the
Junior Priority Secured Parties), and that, until turned over to the First Priority Secured
Parties, such amounts will be held in trust for the First Priority Secured Parties.

     5.8 No Waivers of Rights of First Priority Secured Parties. Nothing contained herein
shall prohibit or in any way limit the First Priority Representative or any First Priority Secured
Party from objecting in any Insolvency Proceeding or otherwise to any action taken by any Junior
Priority Secured Party not expressly permitted hereunder, including the seeking by any Junior
Priority Secured Party of adequate protection (except as provided in Section 5.4) or the asserting
by any Junior Priority Secured Party of any of its rights and remedies under the Junior Priority
Documents or otherwise.

     5.9 Plans of Reorganization. No Junior Priority Secured Party shall support or vote in
favor of any plan of reorganization (and each shall be deemed to have voted to reject any plan of
reorganization) unless such plan (a) pays off, in cash in full, all First Priority Obligations or
(b) is accepted by the class of holders of First Priority Obligations voting thereon.

     5.10 [Reserved].

     5.11 Effectiveness in Insolvency Proceedings. This Agreement, which the parties hereto
expressly acknowledge is a “subordination agreement” under section 510(a) of the Bankruptcy Code,
shall be effective before, during and after the commencement of an Insolvency Proceeding. All
references to any Grantor herein shall apply to any trustee for such Person and such Person as
debtor in possession. The

B-19

 

relative rights as to the Shared Collateral and other collateral and proceeds thereof shall
continue after the filing thereof on the same basis as prior to the date of the petition, subject
to any court order approving the financing of, or use of cash collateral by, any such Person.

     5.12 Reorganization Securities. If, in any Insolvency Proceeding, debt obligations of
the reorganized debtor secured by Liens upon any property of the reorganized debtor
(“Reorganization Securities”) are distributed, pursuant to a plan of reorganization or similar
dispositive restructuring plan, on account of the Junior Priority Obligations, then the provisions
of this Agreement will survive the distribution of such debt obligations pursuant to such plan and
will apply with like effect to the Liens securing such debt obligations. In no event shall the
Junior Priority Secured Parties be required to turn over to the First Priority Representative or
any First Priority Secured Party any Reorganization Securities to the extent the same are subject
to this
Section 5.12.

     5.13 Post-Petition Claims. None of the Junior Priority Representative or any Junior
Priority Secured Party shall oppose or seek to challenge any claim by the First Priority
Representative or any First Priority Secured Party for allowance in any Insolvency Proceeding of
First Priority Obligations consisting of Post-Petition Interest or indemnities to the extent of the
value of the Liens in favor of the First Priority Representative and the First Priority Secured
Parties, without regard to the existence of the Liens of the Junior Priority Representative on
behalf of the Junior Priority Secured Parties on the Shared Collateral.

     5.14 Waivers. Until the First Priority Obligations Payment Date, the Junior Priority
Representative, on behalf of itself and each Junior Priority Secured Party, agrees that (a) it will
not assert or enforce any claim under Section 506(c) of the Bankruptcy Code senior to or on a
parity with the Liens securing the First Priority Obligations for costs or expenses of preserving
or disposing of any Shared Collateral or other collateral and (b) waives any claim it may now or
hereafter have arising out of the election by any First Priority Secured Party of the application
of Section 1111(b)(2) of the Bankruptcy Code.

     SECTION 6. Junior Priority Documents and First Priority Documents.

     (a) Each Grantor and the Junior Priority Representative, on behalf of itself and the Junior
Priority Secured Parties, agrees that it shall not at any time execute or deliver any amendment or
other modification to any of the Junior Priority Documents inconsistent with or in violation of
this Agreement.

     (b) Each Grantor and the First Priority Representative, on behalf of itself and the First
Priority Secured Parties, agrees that it shall not at any time execute or deliver any amendment or
other modification to any of the First Priority Documents inconsistent with or in violation of this
Agreement.

B-20

 

     (c) In the event the First Priority Representative enters into any amendment, waiver or
consent in respect of any of the First Priority Security Documents for the purpose of adding to, or
deleting from, or waiving or consenting to any departures from any provisions of, any First
Priority Security Document or changing in any manner the rights of any parties thereunder, then
such amendment, waiver or consent shall apply automatically to any comparable provision of the
Comparable Junior Priority Security Document without the consent of or action by any Junior
Priority Secured Party (with all such amendments, waivers and modifications subject to the terms
hereof); provided that (other than with respect to amendments, modifications or waivers
that secure additional extensions of credit and add additional secured creditors and do not violate
the express provisions of the Junior Priority Agreements), (i) no such amendment, waiver or consent
shall have the effect of removing assets subject to the Lien of any Junior Priority Security
Document, except to the extent that a release of such Lien is permitted by Section 4.2, (ii) any
such amendment, waiver or consent that materially and adversely affects the rights of the Junior
Priority Secured Parties and does not affect the First Priority Secured Parties in a like or
similar manner shall not apply to the Junior Priority Security Documents without the consent of the
Junior Priority Representative and (iii) notice of such amendment, waiver or consent shall be given
to the Junior Priority Representative no later than 15 days after its effectiveness;
provided that the failure to give such notice shall not affect the effectiveness and
validity thereof.

     SECTION
7. Reliance; Waivers; etc.

     7.1 Reliance. The First Priority Documents are deemed to have been executed and
delivered, and all issuances of debt or other extensions of credit thereunder are deemed to have
been made or incurred, in reliance upon this Agreement. The Junior Priority Representative, on
behalf of itself and the Junior Priority Secured Parties, expressly waives all notice of the
acceptance of and reliance on this Agreement by the First Priority Secured Parties. The Junior
Priority Documents are deemed to have been executed and delivered, and all issuances of debt and
other extensions of credit thereunder are deemed to have been made or incurred, in reliance upon
this Agreement. The First Priority Representative expressly waives, on behalf of itself and all the
First Priority Secured Parties, all notices of the acceptance of and reliance by the Junior
Priority Representative and the Junior Priority Secured Parties.

     7.2 No Warranties or Liability. The Junior Priority Representative and the First
Priority Representative acknowledge and agree that neither has made any representation or warranty
with respect to the execution, validity, legality, completeness, collectibility or enforceability
of any other First Priority Document or any Junior Priority Document. Except as otherwise provided
in this Agreement, the Junior Priority Representative and the First Priority Representative will be
entitled to manage and supervise their respective extensions of credit to any Grantor in accordance
with law and their usual practices, modified from time to time as they deem appropriate.

     7.3 No Waivers. No right or benefit of any party hereunder shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of such party

B-21

 

or any other party hereto or by any noncompliance by any Grantor with the terms and conditions of
any of the First Priority Documents or the Junior Priority Documents.

     SECTION 8. Obligations Unconditional.

     8.1 First Priority Obligations Unconditional. All rights and interests of the First Priority
Secured Parties hereunder, and all agreements and obligations of the Junior Priority Secured
Parties (and, to the extent applicable, the Grantors) hereunder, shall remain in full force and
effect irrespective of:

     (a) any lack of validity or enforceability of any First Priority Document;

     (b) any change in the time, place or manner of payment of, or in any other term of,
all or any portion of the First Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any First Priority Document;

     (c) prior to the First Priority Obligations Payment Date, any exchange, release,
voiding, avoidance or non-perfection of any security interest in any Shared Collateral or
any other collateral, or any release, amendment, waiver or other modification, whether by
course of conduct or otherwise, or any refinancing, replacement, refunding or restatement
of all or any portion of the First Priority Obligations or any guarantee or guaranty
thereof; or

     (d) any other circumstances that otherwise might constitute a defense available to, or
a discharge of, any Grantor in respect of the First Priority Obligations, or of any Junior
Priority Secured Party, or any Grantor, to the extent applicable, in respect of this
Agreement.

     8.2
Junior Priority Obligations Unconditional. All rights and interests of the Junior Priority
Secured Parties hereunder, and all agreements and obligations of the First Priority Secured Parties
(and, to the extent applicable, the Grantors) hereunder, shall remain in full force and effect
irrespective of:

     (a) any lack of validity or enforceability of any Junior Priority Document;

     (b) any change in the time, place or manner of payment of, or in any other term of, all
or any portion of the Junior Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any Junior Priority Document;

     (c) any exchange, release, voiding, avoidance or non-perfection of any security
interest in any Shared Collateral or any other collateral, or any release, amendment, waiver
or other modification, whether by course of conduct or otherwise, or any refinancing,
replacement, refunding or restatement of all or any portion of the Junior Priority
Obligations or any guarantee or guaranty thereof; or

B-22

 

     (d) any other circumstances that otherwise might constitute a defense available to,
or a discharge of, any Grantor in respect of the Junior Priority Obligations, or of any
First Priority Secured Party, or any Grantor, to the extent applicable, in respect of this
Agreement.

     SECTION 9. Miscellaneous.

     9.1 Conflicts. In the event of any conflict between the provisions of this
Agreement and the provisions of any First Priority Document or any Junior Priority Document,
the provisions of this Agreement shall govern.

     9.2 Continuing Nature of Provisions. This Agreement shall continue to be effective,
and shall not be revocable by any party hereto, until the First Priority Obligations Payment Date
shall have occurred, subject to Section 5.5. This is a continuing agreement and the First Priority
Secured Parties and the Junior Priority Secured Parties may continue, at any time and without
notice to the other parties hereto, to extend credit and other financial accommodations, lend
monies and provide Indebtedness to, or for the benefit of, any Grantor on the faith hereof.

     9.3
Amendments; Waivers. (a) No amendment or modification of any of the provisions of
this Agreement shall be effective unless the same shall be in writing and signed by the First
Priority Representative and the Junior Priority Representative, and, in the case of amendments or
modifications of Sections 3.5, 3.6, 9.5 or 9.6 that directly affect the rights or obligations of
any Grantor, such Grantor.

     (b) At the request of the Issuer, the First Priority Representative and the Junior Priority
Representative agree to enter into any amendment to this Agreement or any new intercreditor
agreement in order to (1) facilitate additional Indebtedness or
other obligations (“Additional Debt”) of any of the Grantors becoming First Priority Obligations or Junior Priority Obligations to
the extent such Obligations are permitted by the First Priority Agreement and the Junior Priority
Agreement, with the Lien priority contemplated by such amendment (provided that such
Additional Debt is permitted to be incurred by the First Priority Agreement and Junior Priority
Agreement then extant, and is permitted by said agreements to be subject to the provisions of this
Agreement as First Priority Obligations or Junior Priority Obligations, as applicable), (2)
document the relationship among Junior Priority Secured Parties pursuant to different Junior
Priority Agreements, including, to the extent permitted under each extant First Priority Agreement
and Junior Priority Agreement, the treatment of the Liens securing Junior Priority Obligations
under any Additional Junior Priority Agreement as equal and ratable with the Liens securing the
Junior Priority Obligations under the Existing Junior Priority Agreement or any other Additional
Junior Priority Agreement and (3) document the relationship between the First Priority Secured
Parties and the Junior Priority Secured Parties in case any then existing First Priority Agreement
or Junior Priority Agreement is refinanced or replaced or the First Priority Representative or the
Junior Priority Representative is replaced; provided that (i) the Issuer shall have
delivered an Officers’ Certificate (A) designating such other Additional Debt and the aggregate
principal amount or face amount thereof and (B) representing that such designation complies with

B-23

 

the terms of the First Priority Documents and the Junior Priority Documents, as applicable,
and (ii) in any case, the terms of such amendment or new agreement will contain terms
substantially the same as the terms contained in this Agreement.

     9.4 Information Concerning Financial Condition of the Grantors. The Junior Priority
Representative and the First Priority Representative hereby agree that no party shall have any duty
to advise any other party of information known to it regarding the financial condition of the
Grantors or any such circumstances. In the event the Junior Priority Representative or the First
Priority Representative, in its sole discretion, undertakes at any time or from time to time to
provide any information to any other party to this Agreement, it shall be under no obligation (a)
to provide any such information to such other party or any other party on any subsequent occasion,
(b) to undertake any investigation, or (c) to disclose any other information.

     9.5 Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York, except as otherwise required by mandatory provisions of law
and except to the extent that remedies provided by the laws of any jurisdiction other than the
State of New York are governed by the laws of such jurisdiction.

     9.6 Submission to Jurisdiction. (a) Each First Priority Secured Party, each Junior
Priority Secured Party and each Grantor hereby irrevocably and unconditionally submits, for itself
and its property, to the exclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment pursuant to any such
action or proceeding, and each such party 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 such party 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 shall affect any right that any First Priority Secured Party or Junior Priority Secured
Party may otherwise have to bring any action or proceeding against any Grantor or its properties in
the courts of any jurisdiction.

     (b) Each First Priority Secured Party, each Junior Priority Secured Party and each Grantor
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively
do so, (i) any objection 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 in any court referred to in paragraph (a)
of this Section and (ii) the defense of an inconvenient forum to the maintenance of such action or
proceeding.

     (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.7. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

B-24

 

     9.7 Notices. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and may be personally
served, telecopied, or sent by overnight express courier service or United States mail and shall be
deemed to have been given when delivered in person or by courier service, upon receipt of a
telecopy or five days after deposit in the United States mail (certified, with postage prepaid and
properly addressed). For the purposes hereof, the address of (a) each Issuer, the Collateral Agent,
the Trustee and the Junior Priority Representative (until notice of a change thereof is delivered
as provided in this Section) shall be as set forth in the First Priority Agreement or the Junior
Priority Agreement, as applicable, and (b) any other party shall be in care of the Company as so
set forth in clause (a), or, as to each party, at such other address as may be designated by such
party in a written notice to all of the other parties.

     9.8 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and each of the First Priority Secured Parties and Junior
Priority Secured Parties and their respective successors and assigns, and nothing herein is
intended, or shall be construed, to give any other Person any right, remedy or claim under, to or
in respect of this Agreement or any Shared Collateral.

     9.9 Headings. Section headings used herein are for convenience of reference only, are
not part of this Agreement and shall not affect the construction of, or be taken into consideration
in interpreting, this Agreement.

     9.10 Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     9.11 Counterparts; Integration; Effectiveness. 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.
Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other
electronic transmission shall be effective as delivery of a manually executed counterpart of this
Agreement. This Agreement shall become effective when it shall have been executed by each party
hereto.

     9.12 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
AND FOR ANY COUNTERCLAIM THEREIN.

     9.13 Additional Grantors. The Issuer shall cause each Person that becomes a
Grantor after the date hereof (other than any such Grantor that does not grant any Liens to secure
any of the Junior Priority Obligations, until such time as such Grantor does grant any such Liens)
to become a party to this Agreement by executing and delivering a

B-25

 

supplement to this Agreement in form and substance reasonably satisfactory to the First Priority
Representative and the Junior Priority Representative.

     9.14 Representatives. In connection with its execution of this Agreement and its
actions hereunder, each of the First Priority Representative and the Junior Priority Representative
shall be entitled to all rights, privileges, benefits, protections, immunities and indemnities
provided to it under the First Priority Documents and under the Junior Priority Documents,
respectively.

     9.15 Subrogation. The Junior Priority Representative, for itself and on behalf of the
Junior Priority Secured Parties, hereby waives any rights of subrogation it or they may acquire as
a result of any payment hereunder until the First Priority Obligations Payment Date has occurred;
provided, however, that, as between the Grantors, on the one hand, and the Junior Priority
Secured Parties, on the other hand, any such payment that is paid over to the First Priority
Representative pursuant to this Agreement shall be deemed not to reduce any of the Junior Priority
Obligations unless and until (and then only to the extent that) the First Priority Obligations
Payment Date has occurred and the First Priority Representative delivers any such payment to the
Junior Priority Representative.

B-26

 

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

[    ], as First Priority Representative for and on

behalf of the First Priority Secured Parties

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

B-27

 

[     ], as Junior Priority Representative for and on

behalf of the Junior Priority Secured Parties

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

B-28

 

DIAMOND RESORTS CORPORATION

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

THE GRANTORS LISTED ON SCHEDULE I

HERETO

	 	 	 	 	 	 	 

	 

	 	by
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

B-29

 

SCHEDULE I to

JUNIOR LIEN INTERCREDITOR AGREEMENT

Grantors

B-30exv4w2

Exhibit 4.2

EXECUTION COPY

$425,000,000

DIAMOND RESORTS CORPORATION

12.00% Senior Secured Notes due 2018

REGISTRATION RIGHTS AGREEMENT

August 13, 2010

CREDIT SUISSE SECURITIES (USA) LLC,

BANC OF AMERICA SECURITIES LLC, AND

GUGGENHEIM SECURITIES, LLC

     As the Representatives of the Initial Purchasers,

          c/o Credit Suisse Securities (USA) LLC,

               Eleven Madison Avenue,

                    New York, N.Y. 10010-3629

Dear Sirs:

     Diamond Resorts Corporation, a Maryland corporation (the “Issuer”), proposes to issue and
sell to Credit Suisse Securities (USA) LLC, Banc of America Securities LLC and Guggenheim
Securities, LLC (collectively, the “Initial Purchasers”), upon the terms set forth in a purchase
agreement dated August 10, 2010 (the “Purchase Agreement”), $425,000,000 aggregate principal
amount of its 12.00% Senior Secured Notes due 2018 (the “Initial Securities”) to be
unconditionally guaranteed (the “Guarantees”) by each of the guarantors listed in Schedule I
hereto (the “Guarantors” and together with the Issuer, the “Company”). The Initial Securities
will be issued pursuant to an Indenture, dated as of the date hereof (the “Indenture”), among
the Issuer, the Guarantors named therein and Wells Fargo Bank, National Association (the
“Trustee”). As an inducement to the Initial Purchasers, the Company agrees with the Initial
Purchasers, for the benefit of the holders of the Initial Securities (including, without
limitation, the Initial Purchasers), the Exchange Securities (as defined below) and the Private
Exchange Securities (as defined below) (collectively the “Holders”), as follows:

     1. Registered
Exchange Offer. The Company shall (a) within 210 days after the
date of original issue of the Initial Securities (the “Issue Date”), at its own cost, prepare
and file with the Securities and Exchange Commission (the “Commission”) a registration
statement (the “Exchange Offer Registration Statement”) on an appropriate form under the
Securities Act of 1933, as amended (the “Securities Act”), with respect to a proposed offer
(the “Registered Exchange Offer”) to the Holders of Initial Securities who are not prohibited
by any law or policy of the Commission from participating in the Registered Exchange Offer to
issue and deliver to such Holders as soon as practicable after the effectiveness of the
Exchange Offer Registration Statement, in exchange for the Initial Securities, a like aggregate
principal amount of debt securities (the “Exchange Securities”) of the Issuer issued under the
Indenture and identical in all material respects to the Initial Securities (except for the
transfer restrictions relating to the Initial Securities and the provisions relating to the
matters described in Section 6 hereof) that would be registered under the Securities Act; (b)
use its reasonable best efforts to cause the Exchange Offer Registration Statement to be
declared effective under the Securities Act within 330 days after the Issue Date; and (c) keep
the Registered Exchange Offer open for not less than 20 days (or longer, if required by
applicable law) after the date notice of the Registered Exchange Offer is mailed to the Holders
of the Initial Securities (such period being called the “Exchange Offer Registration Period”).

 

 

     If the Company effects the Registered Exchange Offer, the Company will be entitled (subject
to applicable law) to close the Registered Exchange Offer 20 days after the commencement thereof
provided that the Company has accepted all the Initial Securities theretofore validly tendered
in accordance with the terms of the Registered Exchange Offer.

     Following the declaration of the effectiveness of the Exchange Offer Registration
Statement, the Company shall as soon as practicable commence the Registered Exchange Offer, it
being the objective of such Registered Exchange Offer to enable each Holder of Transfer
Restricted Securities (as defined in Section 6 below) electing to exchange the Initial
Securities for Exchange Securities (assuming that such Holder is not an affiliate of the Company
within the meaning of the Securities Act, acquires the Exchange Securities in the ordinary
course of such Holder’s business and has no arrangements or understandings with any person to
participate in the distribution (within the meaning of the Securities Act) of the Exchange
Securities and is not prohibited by any law or policy of the Commission from participating in
the Registered Exchange Offer) to trade such Exchange Securities from and after
their receipt without any limitations or restrictions under the Securities Act and without
material restrictions under the securities laws of the several states of the United States.

     The Company acknowledges that, pursuant to current interpretations by the Commission’s
staff of Section 5 of the Securities Act, in the absence of an applicable exemption therefrom,
(i) each Holder which is a broker-dealer electing to exchange Initial Securities,
acquired for its own account as a result of market-making activities or other trading
activities, for Exchange Securities (an “Exchanging Dealer”), is required to deliver a
prospectus containing the information set forth in (a) Annex A hereto on the cover, (b) Annex B
hereto in the “Exchange Offer Procedures” (or other appropriate) section of such prospectus and
the “Purpose of the Exchange Offer” (or other appropriate) section of such prospectus and (c)
Annex C hereto in the “Plan of Distribution” section of such prospectus in connection with a
sale of any such Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer and (ii) an Initial Purchaser that elects to sell Exchange Securities
acquired in exchange for Initial Securities constituting any portion of an unsold allotment is
required to deliver a prospectus containing the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in connection with such sale.

     The Company shall use its reasonable best efforts to keep the Exchange Offer Registration
Statement effective and amend and supplement the prospectus contained therein in order to
permit such prospectus to be lawfully delivered by all persons subject to the prospectus
delivery requirements of the Securities Act for 180 days following the effective date of the
Exchange Offer Registration Statement or such shorter period of time as such persons must
comply with such requirements in order to resell the Exchange Securities; provided, however,
that (i) in the case where such prospectus and any amendment or supplement thereto must be
delivered by an Exchanging Dealer or an Initial Purchaser, such period shall be the lesser of
180 days and the date on which all Exchanging Dealers and the Initial Purchasers have sold all
Exchange Securities held by them (unless such period is extended pursuant to Section 3(j)
below) and (ii) the Company shall make such prospectus and any amendment or supplement thereto
available to any requesting broker-dealer for use in connection with any resale of any Exchange
Securities for a period of not less than 90 days after the consummation of the Registered
Exchange Offer.

     If, upon consummation of the Registered Exchange Offer, any Initial Purchaser holds
Initial Securities acquired by it as part of its initial distribution, the Company,
simultaneously with the delivery of the Exchange Securities pursuant to the Registered Exchange
Offer, shall issue and deliver to such Initial Purchaser upon the written request of such
Initial Purchaser, in exchange (the “Private Exchange”) for the

 

 

Initial Securities held by such Initial Purchaser, a like principal amount of debt
securities of the Issuer issued under the Indenture and identical in all material respects
(including the existence of restrictions on transfer under the Securities Act and the securities
laws of the several states of the United States, but excluding provisions relating to the
matters described in Section 6 hereof) to the Initial Securities (the “Private Exchange
Securities”). The Initial Securities, the Exchange Securities and the Private Exchange
Securities are herein collectively called the “Securities”.

     In connection with the Registered Exchange Offer, the Company shall:

     (a) mail or deliver to each Holder of Initial Securities a copy of the prospectus
forming part of the Exchange Offer Registration Statement, together with an appropriate
letter of transmittal and related documents;

     (b) keep the Registered Exchange Offer open for not less than 20 days (or longer, if
required by applicable law) after the date notice thereof is mailed or delivered to such
Holders;

     (c) utilize the services of a depositary for the Registered Exchange Offer with an
address in the Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate of the Trustee;

     (d) permit Holders to withdraw tendered Initial Securities at any time prior to the
close of business, New York time, on the last business day on which the Registered
Exchange Offer shall remain open; and

     (e) otherwise comply with all applicable laws.

     As soon as reasonably practicable after the close of the Registered Exchange Offer or the
Private Exchange, as the case may be, the Company shall:

     (x) accept for exchange all the Initial Securities validly tendered and not
withdrawn pursuant to the Registered Exchange Offer and the Private Exchange;

     (y) deliver to the Trustee for cancellation all the Initial Securities so accepted
for exchange; and

     (z) cause the Trustee to authenticate and deliver promptly to each Holder of the
Initial Securities, Exchange Securities or Private Exchange Securities, as the case may
be, equal in principal amount to the Initial Securities of such Holder so accepted for
exchange.

     Each Holder participating in the Registered Exchange Offer shall be required to represent
to the Company that at the time of the consummation of the Registered Exchange Offer (i) any
Exchange Securities received by such Holder will be acquired in the ordinary course of
business, (ii) such Holder has no arrangements or understanding with any person to participate
in the distribution of the Securities or the Exchange Securities within the meaning of the
Securities Act, (iii) such Holder is not an “affiliate,” as defined in Rule 405 of the
Securities Act, of the Company or if it is an affiliate, such Holder will comply with the
registration and prospectus delivery requirements of the Securities Act to the extent
applicable, (iv) if such Holder is not a broker-dealer, that it is not engaged in, and does not
intend to engage in, a distribution (within the meaning of the Securities Act) of the Exchange
Securities and (v) if such Holder is a broker-dealer, that it will receive Exchange Securities
for its own account in exchange for Initial

 

 

Securities that were acquired as a result of market-making activities or other trading
activities and that it will be required to acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.

     Notwithstanding any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus forming part thereof
and any supplement thereto complies in all material respects with the Securities Act and the
rules and regulations thereunder, (ii) any Exchange Offer Registration Statement and any
amendment thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading and (iii) any prospectus forming part of any
Exchange Offer Registration Statement, and any supplement to such prospectus, does not include
an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

     2. Shelf Registration. If (i) because of any change in law or in applicable
interpretations thereof by the staff of the Commission, the Company is not permitted to effect
a Registered Exchange Offer as contemplated by Section I hereof, (ii) the Registered Exchange
Offer is not consummated within 365 days of the Issue Date, (iii) any Initial Purchaser so
requests in writing with respect to the Initial Securities (or the Private Exchange Securities)
constituting Transfer Restricted Securities that are not eligible to be exchanged for Exchange
Securities in the Registered Exchange Offer as a result of being held by such Initial Purchaser
and held by it following consummation of the Registered Exchange Offer or (iv) any Holder of
Transfer Restricted Securities is prohibited by applicable law or Commission policy from
participating in the Registered Exchange Offer or may not resell the Exchange Notes acquired by
it in the Registered Exchange Offer to the public without delivery of a prospectus, the Company
shall take the following actions:

     (a) The Company shall, at its cost, within 30 days after the time its obligation to
file an Exchange Offer Registration Statement arises, file with the Commission and
thereafter shall use its reasonable best efforts to cause to be declared effective on or
prior to the 90th day after the date on which the Shelf Registration Statement (as
defined below) is required to be filed (unless it becomes effective automatically upon
filing) a registration statement (the “Shelf Registration Statement” and, together with
the Exchange Offer Registration Statement, a “Registration Statement”) on an
appropriate form under the Securities Act relating to the offer and sale of the Transfer
Restricted Securities by the Holders thereof from time to time in accordance with the
methods of distribution set forth in the Shelf Registration Statement
and Rule 415
under the Securities Act (hereinafter, the “Shelf Registration”); provided, however,
that no Holder (other than an Initial Purchaser) shall be entitled to have the
Securities held by it covered by such Shelf Registration Statement unless such Holder
agrees in writing to be bound by all the provisions of this Agreement applicable to such
Holder.

     (b) The Company shall use its reasonable best efforts to keep the Shelf
Registration Statement continuously effective in order to permit the prospectus included
therein to be lawfully delivered by the Holders of the relevant Securities until the
earlier of (1) three years from the Issue Date and (2) the date on which all Securities
registered thereunder are disposed of in accordance therewith (or for such longer period
if extended pursuant to Section 3(j) below) or such shorter period that will terminate
when all the Securities covered by the Shelf Registration Statement (i) have been sold
pursuant thereto or (ii) are no longer Transfer Restricted Securities. The Company shall
be deemed not to have used its reasonable best efforts to keep the Shelf

 

 

Registration Statement effective during the requisite period if it voluntarily takes
any action that would result in Holders of Securities covered thereby not being able to
offer and sell such Securities during that period, unless such action is required by
applicable law; provided that the Company shall not be so deemed unless such action
results in a Registration Default (after giving effect to Section 6(b) hereof).

     (c) Notwithstanding any other provisions of this Agreement to the contrary, the
Company shall cause the Shelf Registration Statement and the related prospectus and any
amendment or supplement thereto, as of the effective date of the Shelf Registration
Statement, amendment or supplement, (i) to comply in all material respects with the
applicable requirements of the Securities Act and the rules and regulations of the
Commission thereunder and (ii) not to contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they
were made, not misleading.

     3. Registration Procedures. In connection with any Shelf Registration contemplated by
Section 2 hereof and, to the extent applicable, any Registered Exchange Offer contemplated by
Section 1 hereof, the following provisions shall apply:

     (a) The Company shall (i) furnish to each Initial Purchaser, prior to the filing
thereof with the Commission, a copy of the Registration Statement and each amendment
thereof and each supplement, if any, to the prospectus included therein and, in the
event that an Initial Purchaser (with respect to any portion of an unsold allotment from
the original offering) is participating in the Registered Exchange Offer or the Shelf
Registration, the Company shall use its reasonable best efforts to reflect in each such
document, when so filed with the Commission, such comments as such Initial Purchaser
reasonably may propose; (ii) include the information set forth in Annex A hereto on the
cover, in Annex B hereto in the “Exchange Offer Procedures” (or other appropriate)
section of such prospectus and the “Purpose of the Exchange Offer” (or other
appropriate) section of such prospectus and in Annex C hereto in the “Plan of
Distribution” section of the prospectus forming a part of the Exchange Offer
Registration Statement and include the information set forth in Annex D hereto in the
Letter of Transmittal delivered pursuant to the Registered Exchange Offer, in each case
subject to any change, addition, deletion or moving of such disclosure requested by the
staff of the Commission; (iii) if reasonably requested by an Initial Purchaser, include
the information required by Items 507 or 508 of Regulation S-K under the Securities Act,
as applicable, in the prospectus forming a part of the Exchange Offer Registration
Statement; (iv) include within the prospectus contained in the Exchange Offer
Registration Statement a section entitled “Plan of Distribution,” reasonably acceptable
to the Initial Purchasers, which shall contain a summary statement of the positions
taken or policies made by the staff of the Commission with respect to the potential
“underwriter” status of any broker-dealer that is the beneficial owner (as defined in
Rule 13d-3 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”),
of Exchange Securities received by such broker-dealer in the Registered Exchange Offer
(a “Participating Broker-Dealer”), whether such positions or policies have been publicly
disseminated by the staff of the Commission or such positions or policies, in the
reasonable judgment of the Initial Purchasers based upon advice of counsel (which may be
in-house counsel), represent the prevailing views of the staff of the Commission; and
(v) in the case of a Shelf Registration Statement, include in the prospectus included in
the Shelf Registration Statement (or, if permitted by Commission Rule 430B(b), in a
prospectus supplement that becomes a part thereof pursuant to Commission Rule 430B(f))
that is delivered to any Holder

 

 

pursuant
to Sections 3(d) and (f), the names of the Holders who propose to
sell Securities pursuant to the Shelf Registration Statement, as selling security
holders.

     (b) The Company shall give written notice to the Initial Purchasers, the Holders
and any Participating Broker-Dealer from whom the Company has received prior written
notice that it will be a Participating Broker-Dealer in the Registered Exchange Offer
(which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction
to suspend the use of the prospectus until the requisite changes have been made):

     (i) when the Registration Statement or any amendment thereto has been filed
with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective;

     (ii) of any request by the Commission for amendments or supplements to the
Registration Statement or the prospectus included therein or for additional
information;

     (iii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
for that purpose, of the issuance by the Commission of a notification of
objection to the use of the form on which the Registration Statement has been
filed and of the happening of any event that causes the Company to become an
“ineligible issuer,” as defined in Commission Rule 405;

     (iv) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of the Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

     (v) of the happening of any event that requires the Company to make changes
in the Registration Statement or the prospectus in order that the Registration
Statement or the prospectus does not contain an untrue statement of a material
fact nor omit to state a material fact required to be
stated therein or necessary to make the statements therein (in the case of
the prospectus, in light of the circumstances under which they were made) not
misleading.

     (c) The Company shall make every reasonable effort to obtain the withdrawal, at the
earliest possible time, of any order suspending the effectiveness of the Registration
Statement.

     (d) If not otherwise available on the Commission’s Electronic Data Gathering,
Analysis and Retrieval (“EDGAR”) System or similar system, upon the written request of a
Holder of Securities included within the coverage of the Shelf Registration, the Company
shall furnish to each such Holder, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment or supplement thereto, including
financial statements and schedules, and, if the Holder so requests in writing, all
exhibits thereto (including those, if any, incorporated by reference). The Company shall
not, without the prior consent of the Initial Purchasers, make any offer relating to the
Securities that would constitute a “free writing prospectus,” as defined in Commission
Rule 405.

     (e) If not otherwise available on the Commission’s EDGAR System or similar system,
upon the written request of any Holder, the Company shall deliver to each Exchanging
Dealer and

 

 

each Initial Purchaser, and to any other Holder who so requests in writing, without
charge, at least one copy of the Exchange Offer Registration Statement and any
post-effective amendment thereto, including financial statements and schedules, and, if
any Initial Purchaser or any such Holder requests, all exhibits thereto (including those
incorporated by reference).

     (f) The Company shall, during the period of effectiveness of the Shelf
Registration, deliver to each Holder of Securities included within the coverage of the
Shelf Registration, without charge, as many copies of the prospectus (including each
preliminary prospectus) included in the Shelf Registration Statement and any amendment
or supplement thereto as such person may reasonably request. The Company consents,
subject to the provisions of this Agreement, to the use of the prospectus or any
amendment or supplement thereto by each of the selling Holders in connection with the
offer and sale of the Securities covered by the prospectus, or any amendment or
supplement thereto, included in the Shelf Registration Statement.

     (g) The Company shall deliver to each Initial Purchaser, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer, without charge, as many copies of the final
prospectus included in the Exchange Offer Registration Statement and any amendment or
supplement thereto as such persons may reasonably request. The Company consents, subject
to the provisions of this Agreement, to the use of the prospectus or any amendment or
supplement thereto by any Initial Purchaser, if necessary, any Participating
Broker-Dealer and such other persons required to deliver a prospectus following the
Registered Exchange Offer in connection with the offering and sale of the Exchange
Securities covered by the prospectus, or any amendment or supplement thereto, included
in such Exchange Offer Registration Statement.

     (h) Prior to any public offering of the Securities pursuant to any Registration
Statement, the Company shall use its reasonable best efforts to register or qualify or
cooperate with the Holders of the Securities included therein and their respective
counsel in connection with the registration or qualification of the Securities for offer
and sale under the securities or “blue sky” laws of such states of the United States as
any Holder reasonably requests in writing and do any and all other acts or things
necessary or advisable to enable the offer and sale in such jurisdictions of the
Securities covered by such Registration Statement; provided, however, that the Company
shall not be required to (i) qualify generally to do business in any jurisdiction where
it is not then so qualified or (ii) take any action which would subject it to general
service of process or to taxation in any jurisdiction where it is not then so subject.

     (i) The Company shall cooperate with the Holders to facilitate the timely
preparation and delivery of global certificates representing the Securities to be sold
pursuant to any Registration Statement, free of any restrictive legends and in such
denominations and registered in such names as the Holders may request a reasonable
period of time prior to sales of the Securities pursuant to such Registration Statement.

     (j) Upon the occurrence of any event contemplated by paragraphs (ii)
through (v) of Section 3(b) above during the period for which the Company is required to
maintain an effective Registration Statement, the Company shall promptly prepare and
file a post-effective amendment to the Registration Statement or a supplement to the
related prospectus and any other required document so that, as thereafter delivered to
Holders or purchasers of Securities, the prospectus will not contain an untrue statement
of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under

 

 

which they were made, not misleading. The Company shall also promptly provide
notice to the Initial Purchasers, the Holders and any known Participating Broker-Dealer
of its determination (which determination shall have been made by the Company’s board of
directors for a bona fide business purpose) to suspend the availability of a
Registration Statement and the related prospectus because the continued effectiveness
and use of such Registration Statement and prospectus included therein would require the
disclosure of confidential information or interfere with any financing, acquisition,
corporate reorganization or other material transaction or development involving the
Issuer or any of its consolidated subsidiaries (it being understood that such notice may
disclose only the existence of such determination and need not disclose the nature of
the basis therefore, which may be kept confidential for such period as may reasonably be
required for bona fide business reasons). If the Company notifies the Initial
Purchasers, the Holders and any known Participating Broker-Dealer in accordance with
paragraphs (ii) through (v) of Section 3(b) above or of its determination pursuant to
the second sentence of this Section 3(j) to suspend the use of the prospectus until the
requisite changes to the prospectus have been made (each, a “Suspension Notice”), then
the Initial Purchasers, the Holders and any such Participating Broker-Dealers shall
suspend use of such prospectus, and the period of effectiveness of the Shelf
Registration Statement provided for in Section 2(b) above and the Exchange Offer
Registration Statement provided for in Section I above shall each be extended by the
number of days from and including the date of the giving of the Suspension Notice to and
including the date when the Initial Purchasers, the Holders and any known Participating
Broker-Dealer shall have received such amended or supplemented prospectus or notice that
the use of such prospectus may be resumed, as applicable, pursuant to this Section 3(j);
provided that, with respect to an Exchange Offer Registration Statement, the Company
shall not give a Determination Suspension Notice (as defined in Section 6(b) hereof)
during the Exchange Offer Registration Period. During the period during which the
Company is required to maintain an effective Shelf Registration Statement pursuant to
this Agreement, the Company will prior to the three-year expiration of that Shelf
Registration Statement file, and use its reasonable best efforts to cause to be declared
effective (unless it becomes effective automatically upon filing) within a period that
avoids any interruption in the ability of Holders of Securities covered by the expiring
Shelf Registration Statement to make registered dispositions, a new registration
statement relating to the Securities, which shall be deemed the “Shelf Registration
Statement” for purposes of this Agreement.

     (k) Not later than the effective date of the applicable Registration Statement, the
Company will provide a CUSIP number for the Initial Securities, the Exchange Securities
or the Private Exchange Securities, as the case may be, and provide the applicable
trustee with printed global certificates for the Initial Securities, the Exchange
Securities or the Private Exchange Securities, as the case may be, in a form eligible
for deposit with The Depository Trust Company.

     (l) The Company will comply with all rules and regulations of the
Commission to the extent and so long as they are applicable to the Registered Exchange
Offer or the Shelf Registration, as applicable, and will make generally available to its
security holders (or otherwise provide in accordance with
Section 11(a) of the
Securities Act and Rule 158 thereunder) an earnings statement satisfying the provisions
of Section 11(a) of the Securities Act no later than 45 days after the end of a
12-month period (or 90 days, if such period is a fiscal year) beginning with the first
month of the Issuer’s first fiscal quarter commencing after the effective date of the
Registration Statement, which statement shall cover such 12-month period.

     (m) The Company shall cause the Indenture to be qualified under the Trust Indenture
Act of 1939, as amended, in a timely manner and containing such changes, if any, as
shall be

 

 

necessary for such qualification. In the event that such qualification would
require the appointment of a new trustee under the Indenture, the Company shall appoint
a new trustee thereunder pursuant to the applicable provisions of the Indenture.

     (n) The Company may require each Holder of Securities to be sold pursuant to the
Shelf Registration Statement to furnish to the Company such information regarding the
Holder and the distribution of the Securities as the Company may from time to time
reasonably require for inclusion in the Shelf Registration Statement, and the Company may
exclude from such registration the Securities of any Holder that unreasonably fails to
furnish such information within a reasonable time after receiving such request.

     (o) The Company shall enter into such customary agreements (including, if
requested, an underwriting agreement in customary form) and take all such other action,
if any, as any Holder shall reasonably request in order to facilitate the disposition of
the Securities pursuant to any Shelf Registration.

     (p) In the case of any Shelf Registration, subject to customary confidentiality
agreements being executed by all parties to review information, the Company shall (i)
make reasonably available for inspection by the Holders, any underwriter participating
in any disposition pursuant to the Shelf Registration Statement
and any attorney, accountant or other agent retained by the Holders or any such
underwriter all relevant financial and other records, pertinent corporate documents and
properties of the Company and (ii) cause the Company’s officers, directors and employees
to supply all relevant information reasonably requested by the Holders or any such
underwriter, attorney, accountant or agent in connection with the Shelf Registration
Statement, in each case, as shall be reasonably necessary to enable such persons to
conduct a reasonable investigation within the meaning of
Section 11 of the Securities
Act; provided, however, that the foregoing inspection and information gathering shall be
coordinated on behalf of the Initial Purchasers by you and on behalf of the other
parties, by one counsel designated by and on behalf of such other parties as described
in Section 4 hereof.

     (q) In the case of any Shelf Registration, the Company, if requested by any Holder
of Securities covered thereby, shall cause (i) its counsel to deliver an opinion and
updates thereof relating to the Securities in customary form addressed to such Holders
and the managing underwriters, if any, thereof and dated, in the case of the initial
opinion, the effective date of such Shelf Registration Statement (it being agreed that
the matters to be covered by such opinion shall include, without limitation, the due
incorporation and good standing of the Company and its subsidiaries; the qualification
of the Company and its subsidiaries to transact business as foreign corporations; the
due authorization, execution and delivery of the relevant agreement of the type referred
to in Section 3(o) hereof; the due authorization, execution, authentication
and issuance, and the validity and enforceability, of the applicable Securities; the
absence of material legal or governmental proceedings involving the Company and its
subsidiaries; the absence of governmental approvals required to be obtained in
connection with the Shelf Registration Statement, the offering and sale of the
applicable Securities or any agreement of the type referred to in
Section 3(o)
hereof; the compliance as to form of such Shelf Registration Statement and any
documents incorporated by reference therein and of the Indenture with the requirements
of the Securities Act and the Trust Indenture Act, respectively; and (A) as of the date
of the opinion and as of the effective date of the Shelf Registration Statement or most
recent post-effective amendment thereto, as the case may be, the absence from such Shelf
Registration Statement and the prospectus included therein, as then amended or
supplemented, and from any documents

 

 

incorporated by reference therein and (B) as of an applicable time identified by
such Holders or managing underwriters, the absence from such prospectus taken together
with any other documents identified by such Holders or managing underwriters, in the
case of (A) and (B), of an untrue statement of a material fact or the omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading (in the case of any such incorporated documents, in
the light of the circumstances existing at the time that such documents were filed with
the Commission under the Exchange Act); (ii) its officers to execute and deliver all
customary documents and certificates and updates thereof reasonably requested by any
underwriters of the applicable Securities and (iii) its independent public accountants
and the independent public accountants with respect to any other entity for which
financial information is provided in the Shelf Registration Statement to provide to the
selling Holders of the applicable Securities and any underwriter therefor a comfort
letter in customary form and covering matters of the type customarily covered in comfort
letters in connection with primary underwritten offerings, subject to
receipt of appropriate documentation as contemplated, and only if permitted, by
Statement of Auditing Standards No. 72.

     (r) In the case of the Registered Exchange Offer, if reasonably requested
by any Initial Purchaser or any known Participating Broker-Dealer, the Company shall
cause (i) its counsel to deliver to such Initial Purchaser or such Participating
Broker-Dealer a signed opinion in the form set forth in Section 7(c) of the Purchase
Agreement with such changes as are customary in connection with the preparation of a
Registration Statement and (ii) its independent public accountants and the independent
public accountants with respect to any other entity for which financial information is
provided in the Registration Statement to deliver to such Initial Purchaser or such
Participating Broker-Dealer a comfort letter, in customary form, meeting the
requirements as to the substance thereof as set forth in Section 7(a) of the Purchase
Agreement, with appropriate date changes.

     (s) If a Registered Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Initial Securities by Holders to the Company (or to such other person as
directed by the Company) in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be, the Company shall mark, or cause to be marked, on the
Initial Securities so exchanged that such Initial Securities are being canceled in
exchange for the Exchange Securities or the Private Exchange Securities, as the case may
be; in no event shall the Initial Securities be marked as paid or otherwise satisfied.

     (t) The Company will use its reasonable best efforts to (a) if the Initial
Securities have been rated prior to the initial sale of such Initial Securities, confirm
such ratings will apply to the Securities covered by a
Registration Statement or (b) if the Initial Securities were not previously rated,
cause the Securities covered by a Registration Statement to be rated with the
appropriate rating agencies, if so requested by Holders of a majority in aggregate
principal amount of Securities covered by such Registration Statement, or by the
managing underwriters, if any.

     (u) In the event that any broker-dealer registered under the Exchange Act shall
underwrite any Securities or participate as a member of an underwriting syndicate or
selling group or “assist in the distribution” (within the meaning of the Conduct Rules
(the “Rules”) of the Financial Industry Regulatory Authority, Inc.) thereof, whether as
a Holder of such Securities or as an underwriter, a placement or sales agent or a broker
or dealer in respect thereof, or otherwise, the Company will use its reasonable best
efforts to assist such broker-dealer in complying with the requirements of such Rules,
including, without limitation, by (i) if such Rules, including Rule

 

 

2720, shall so require, engaging a “qualified independent underwriter” (as
defined in Rule 2720) to participate in the preparation of the Registration Statement
relating to such Securities, to exercise usual standards of due diligence in respect
thereto and, if any portion of the offering contemplated by such Registration Statement
is an underwritten offering or is made through a placement or sales agent, to recommend
the yield of such Securities, (ii) indemnifying any such qualified independent
underwriter to the extent of the indemnification of underwriters provided in Section 5
hereof and (iii) providing such information to such broker-dealer as may be required in
order for such broker-dealer to comply with the requirements of the Rules.

     (v) The Company shall use its reasonable best efforts to take all other steps
necessary to effect the registration of the Securities covered by a Registration
Statement contemplated hereby.

     4. Registration Expenses. The Company shall bear all fees and expenses incurred
in connection with the performance of its obligations under
Sections 1 through 3 hereof
(including the reasonable fees and expenses, if any, of Cravath, Swaine & Moore LLP, counsel for
the Initial Purchasers, incurred in connection with the Registered Exchange Offer), whether or
not the Registered Exchange Offer or a Shelf Registration is filed or becomes effective, and, in
the event of a Shelf Registration, shall bear or reimburse the Holders of the Securities covered
thereby for the reasonable fees and disbursements of one firm of counsel designated by the
Holders of a majority in aggregate principal amount of the Initial Securities covered thereby
to act as counsel for the Holders of the Initial Securities in connection therewith.

     5. Indemnification. (a) The Issuer and the Guarantors, jointly and severally,
agree to indemnify and hold harmless each Holder, any Participating Broker-Dealer and each
person, if any, who controls such Holder or such Participating Broker-Dealer within the meaning
of the Securities Act or the Exchange Act (each Holder, any Participating Broker-Dealer and such
controlling persons are referred to collectively as the “Indemnified Parties”) from and against
any losses, claims, damages or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages, liabilities or actions relating to
purchases and sales of the Securities) to which each Indemnified Party may become subject under
the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages,
liabilities or actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus or “issuer free writing
prospectus,” as defined in Commission Rule 433 (“Issuer FWP”), relating to a Shelf Registration,
or arise out of, or are based upon, the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances in which they are made, not misleading, and shall reimburse, as incurred, the
Indemnified Parties for any reasonable legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage, liability or action in
respect thereof; provided, however, that (i) the Issuer and the Guarantors shall not be liable
in any such case to an Indemnified Party to the extent that such loss, claim, damage or
liability arises out of or is based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in a Registration Statement or prospectus or in any amendment
or supplement thereto or in any preliminary prospectus or Issuer FWP relating to a Shelf
Registration in reliance upon and in conformity with written information pertaining to such
Indemnified Party and furnished to the Company by or on behalf of such Indemnified Party
specifically for inclusion therein and (ii) with respect to any untrue statement or omission or
alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf
Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure
to the benefit of any Holder or Participating Broker-Dealer from whom the person asserting any
such losses, claims, damages or liabilities purchased the Securities concerned, to the extent
that a prospectus relating to such Securities was required to be delivered (including through
satisfaction of the conditions of

 

 

Commission Rule 172) by such Holder or Participating Broker-Dealer under the
Securities Act in connection with such purchase and any such loss, claim, damage or liability of
such Holder or Participating Broker-Dealer results from the fact that there was not conveyed to
such person, at or prior to the time of the sale of such Securities to such person, an amended
or supplemented prospectus or, if permitted by Section 3(d), an Issuer FWP correcting such
untrue statement or omission or alleged untrue statement or omission if the Company had
previously furnished copies thereof to such
Holder or Participating Broker-Dealer; provided
further, however, that this indemnity
agreement will be in addition to any liability which the Issuer or the Guarantors may otherwise
have to such Indemnified Party. The Issuer and the Guarantors shall also, jointly and severally,
indemnify underwriters, their officers and directors and each person who controls such
underwriters within the meaning of the Securities Act or the Exchange Act to the same extent as
provided above with respect to the indemnification of the Holders if requested by such Holders.

     (b) Each Holder, severally and not jointly, will indemnify and hold harmless the Issuer and
the Guarantors and each person, if any, who controls the Issuer and the Guarantors within the
meaning of the Securities Act or the Exchange Act from and against any losses, claims, damages
or liabilities or any actions in respect thereof to which the Issuer, the Guarantors or any such
controlling person may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in a Registration
Statement or prospectus or in any amendment or supplement thereto or in any preliminary
prospectus or Issuer FWP relating to a Shelf Registration, or arise out of or are based upon the
omission or alleged omission to state therein a material fact necessary to make the statements
therein not misleading but in each case only to the extent that the untrue statement or omission
or alleged untrue statement or omission was made in reliance upon and in conformity with written
information pertaining to such Holder and furnished to the Company by or on behalf of such
Holder specifically for inclusion therein; and, subject to the limitation set forth immediately
preceding this clause, shall reimburse, as incurred, the Issuer and the Guarantors for any legal
or other expenses reasonably incurred by the Issuer, the Guarantors or any such controlling
person in connection with investigating or defending any loss, claim, damage, liability or
action in respect thereof. This indemnity agreement will be in addition to any liability which
such Holder may otherwise have to the Issuer, the Guarantors or any of their respective
controlling persons.

     (c) Promptly after receipt by an indemnified party under this Section 5 of notice of the
commencement of any action or proceeding (including a governmental investigation), such
indemnified party will, if a claim in respect thereof is to be made against the indemnifying
party under this Section 5, notify the indemnifying party of the
commencement thereof; provided that the failure to notify the indemnifying party shall not relieve the indemnifying party from
any liability that it may have under subsection (a) or (b) above except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or defenses) by
such failure; provided further that the failure to notify the indemnifying party shall not
relieve it from any liability that it may have to an indemnified party otherwise than under
subsection (a) or (b) above. In case any such action is brought against any indemnified party,
and it notifies the indemnifying party of the commencement thereof, the indemnifying party will
be entitled to participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof,
the indemnifying party will not be liable to such indemnified party under this Section 5 for
any legal or other expenses, other than reasonable costs of investigation, subsequently
incurred by such indemnified party in connection with the defense thereof. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any settlement
of any pending or threatened action in

 

 

respect of which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party unless such settlement (i) includes an
unconditional release of such indemnified party from all liability on any claims that are the
subject matter of such action and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party.

     (d) If the indemnification provided for in this Section 5 is unavailable or insufficient to
hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified party as a result of
the losses, claims, damages or liabilities (or actions in respect thereof) referred to in
subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying party or parties on the one hand and the indemnified party
on the other from the exchange of the Securities, pursuant to the Registered Exchange Offer, or
(ii) if the allocation provided by the foregoing clause (i) is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the indemnifying party or parties
on the one hand and the indemnified party on the other in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities (or actions in respect
thereof) as well as any other relevant equitable considerations. The relative fault of the
parties shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or such Holder or such other
indemnified party, as the case may be, on the other, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission. The amount paid by an indemnified party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this subsection (d).
Notwithstanding any other provision of this Section 5(d), the Holders shall not be required to
contribute any amount in excess of the amount by which the net proceeds received by such Holders
from the sale of the Securities pursuant to a Registration Statement exceeds the amount of
damages which such Holders have otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any person who was not guilty of such fraudulent misrepresentation. For
purposes of this paragraph (d), each person, if any, who controls such indemnified party within
the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution
as such indemnified party, and each person, if any, who controls the Company within the meaning
of the Securities Act or the Exchange Act shall have the same rights to contribution as the
Company.

     (e) The agreements contained in this Section 5 shall survive the sale of the
Securities pursuant to a Registration Statement and shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement or any investigation made by or
on behalf of any indemnified party.

     6. Additional Interest Under Certain Circumstances. (a) Additional interest (the
“Additional Interest”) with respect to the Initial Securities or the Exchange Securities, as
applicable, shall be assessed as follows if any of the following events occur (each such event
in clauses (i) through (vi) below a “Registration Default”):

     (i) if the Company fails to file an Exchange Offer Registration Statement with the
Commission on or prior to the 210th day after the Issue Date,

 

 

     (ii) if the Exchange Offer Registration Statement has been filed, but is not declared
effective by the Commission on or prior to the 330th day after the Issue Date,

     (iii) if the Registered Exchange Offer is not consummated on or before the earlier of
(1) the 30th business day after the Exchange Offer Registration Statement is declared
effective or (2) the 365th day after the Issue Date,

     (iv) if obligated to file the Shelf Registration Statement pursuant to the provisions
of Section 2 hereof, the Company fails to file the Shelf Registration Statement with the
Commission on or prior to the 30th day (the “Shelf Filing Date”) after the date on
which the obligation to file a Shelf Registration Statement arises,

     (v) if obligated to file a Shelf Registration Statement pursuant to the provisions of
Section 2 hereof, the Shelf Registration Statement is not declared effective on or prior to
the 90th day after the Shelf Filing Date, or

     (vi) if after the Registration Statement is declared (or becomes automatically)
effective, such Registration Statement thereafter ceases to be (A) effective or (B) usable
(except, in the latter case, as permitted in paragraph (b) of this Section 6) in connection
with resales of Transfer Restricted Securities during the periods specified herein because
either (1) any event occurs as a result of which the related prospectus forming part of such
Registration Statement would include any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein in the light of the circumstances
under which they were made not misleading, (2) it shall be necessary to amend such
Registration Statement or supplement the related prospectus to comply with the Securities Act
or the Exchange Act or the respective rules thereunder, or (3) such Registration Statement is
a Shelf Registration Statement that has expired before a replacement Shelf Registration
Statement has become effective.

Additional Interest shall accrue on the Initial Securities or the Exchange Securities, as
applicable, over and above the interest set forth in the title of the Securities from and
including the date on which any Registration Default shall occur to but excluding the date on
which all such Registration Defaults have been cured, at a rate of 0.25% per annum for the
first 90-day period immediately following the occurrence of a Registration Default, and such
rate will increase by an additional 0.25% per annum with respect to each subsequent 90-day
period until all Registration Defaults have been cured, up to a maximum additional interest
rate of 1.00% per annum. The Company shall be required to pay Additional Interest with respect
to only one Registration Default at a time, regardless of how many Registration Defaults have
occurred and are continuing.

          (b) A Registration Default referred to in Section 6(a)(vi)(B) hereof shall be deemed not
to have occurred and be continuing in relation to a Shelf Registration Statement or the related
prospectus if (A) (i) such Registration Default has occurred solely as a result of
(x) the filing of a post-effective amendment to such Shelf Registration Statement to
incorporate annual audited financial information with respect to the Company where such
post-effective amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) other material events with respect to the Company
that would need to be described in such Shelf Registration Statement or the related prospectus
and (ii) in the case of clause (y), the Company is proceeding promptly and in good faith to
amend or supplement such Shelf Registration Statement and related prospectus to describe such
events or (B) the Company has
provided a Suspension Notice pursuant to Section 3(j) hereof on the basis of a
determination pursuant to the second sentence of such Section 3(j) with respect to such Shelf
Registration Statement or related

 

 

prospectus (any such Suspension Notice a “Determination Suspension Notice”), so long as (x)
the Company does not suspend such Shelf Registration Statement pursuant to a Determination
Suspension Notice more than twice in any period of 12 consecutive months, (y) no such suspension
exceeds 60 days and (z) such suspensions do not exceed 90 days in the aggregate in any
consecutive twelve month period; provided, however, that, in the case of clause (A), if such
Registration Default occurs for a continuous period in excess of 45 days, Additional Interest
shall be payable in accordance with the above paragraph from the day such Registration Default
occurs until such Registration Default is cured.

     (c) Any amounts of Additional Interest due pursuant to any of clauses (i) through (vi) of
Section 6(a) above will be payable in cash on the regular interest payment dates with respect to
the Initial Securities. The amount of Additional Interest will be determined by multiplying the
applicable Additional Interest rate by the principal amount of the Initial Securities or the
Exchange Securities, as applicable, multiplied by a fraction, the numerator of which is the
number of days such Additional Interest rate was applicable during such period (determined on
the basis of a 360-day year comprised of twelve 30-day months) and the denominator of which is
360.

     (d) “Transfer Restricted Securities” means each Security until (i) the date on which such
Security has been exchanged by a person other than a broker-dealer for a freely transferable
Exchange Security in the Registered Exchange Offer, (ii) following the exchange by a
broker-dealer in the Registered Exchange Offer of an Initial Security for an Exchange Security,
the date on which such Exchange Security is sold to a purchaser who receives from such
broker-dealer on or prior to the date of such sale a copy of the prospectus contained in the
Exchange Offer Registration Statement, (iii) the date on which such Initial Security has been
effectively registered under the Securities Act and disposed of in accordance with the Shelf
Registration Statement or (iv) the earliest date that is no less than two years after the Issue
Date and on which such Initial Security (except for Initial Securities held by an affiliate of
the Company) is no longer subject to any restrictions on transfer under the Securities Act,
including those pursuant to Rule 144 thereunder.

     7. Copies of this Agreement. The Company will provide a copy of this Agreement to
prospective purchasers of Initial Securities identified to the Company by the Initial
Purchasers upon written request.

     8. Underwritten Registrations. If any of the Transfer Restricted Securities covered by any
Shelf Registration are to be sold in an underwritten offering, the investment banker or
investment bankers and manager or managers that will administer the offering (“Managing
Underwriters”) will be selected by the Holders of a majority in aggregate principal amount of
such Transfer Restricted Securities to be included in such offering.

     No person may participate in any underwritten registration hereunder unless such person
(i) agrees to sell such person’s Transfer Restricted Securities on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled hereunder to approve
such arrangements and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of
such underwriting arrangements.

     9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement may not be amended, modified
or supplemented, and waivers or consents to departures from the provisions hereof may not be
given, except by the Company and the written consent of the Holders of a majority in principal
amount of the Securities affected by such amendment, modification, supplement, waiver or
consents.

 

 

     (b) Notices.
All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, first-class mail, facsimile transmission or
air courier which guarantees overnight delivery:

     (1) if to a Holder, at the most current address given by such Holder to the Company.

     (2) if to the Initial Purchasers;

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.: (212) 325-4296

Attention: Transactions Advisory Group

     with a copy to:

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019

Fax No.: (212) 474-3700

Attention: Kris F. Heinzelman, Esq.

     (3) if to the Company, at its address as follows:

Diamond Resorts Corporation

10600 West Charleston Boulevard

Las Vegas, NV 89135

Fax No.: (702) 804-8601

Attention: Chief Financial Officer

     with a copy to:

Katten Muchin Rosenman LLP

525 West Monroe Street

Chicago, IL 60661

Fax No.: (312) 577-8798

Attention: Howard Lanznar, Esq.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; three business days after being deposited in the
mail, postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine
operator, if sent by facsimile transmission; and on the day delivered, if sent by overnight air
courier guaranteeing next day delivery.

 

 

     (c) No Inconsistent Agreements. The Company has not, as of the date hereof, entered
into, nor shall it, on or after the date hereof, enter into, any agreement with respect to its
 securities that is inconsistent with the rights granted to the Holders herein or otherwise
conflicts with the provisions hereof.

     (d) Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns.

     (e) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed (including by facsimile
or electronic image scan) shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement.

     (f) Headings. The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

     (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     (h) Severability. If anyone or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality
and enforceability of any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

     (i) Securities Held by the Company. Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities is required hereunder, Securities held by
the Company or its affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such Securities) shall
not be counted in determining whether such consent or approval was given by the Holders of such
required percentage.

     (j) Agent for Service; Submission to Jurisdiction; Waiver of Immunities. By the
execution and delivery of this Agreement, the Company (i) acknowledges that it has, by separate
written instrument, irrevocably designated and appointed the Issuer (and any successor entity),
as its authorized agent upon which process may be served in any suit or proceeding arising out
of or relating to this Agreement that may be instituted in any federal or state court in the
State of New York or brought under federal or state securities laws, and acknowledges that the
Issuer has accepted such designation, (ii) submits to the nonexclusive jurisdiction of any such
court in any such suit or proceeding and (iii) agrees that service of process upon the Issuer
and written notice of said service to the Company shall be deemed in every respect effective
service of process upon it in any such suit or proceeding. The Company further agrees to take
any and all action, including the execution and filing of any and all such documents and
instruments, as may be necessary to continue such designation and appointment of the Issuer in
full force and effect so long as any of the Securities shall be outstanding. To the extent that
the Company may acquire any immunity from jurisdiction of any court or from any legal process
(whether through service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, it hereby irrevocably
waives such immunity in respect of this Agreement, to the fullest extent permitted by law.

 

 

If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the Company a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the several Initial
Purchasers, the Issuer and the Guarantors in accordance with its terms.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	Diamond Resorts Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	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	 	 
	 
	 	 	 	 	 	 
	 	 	Diamond Resorts Holdings, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David F. Palmer
 

Name: David F. Palmer
	 	 
	 

	 	 	 	Title: Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Each of the Guarantors listed on Schedule I hereto	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David F. Palmer
 

Name: David F. Palmer
	 	 
	 

	 	 	 	Title: Executive Vice President	 	 

[Signature Page to Registration Rights Agreement]

 

 

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

	 	 	 	 	 	 	 

	Credit Suisse Securities (USA) LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jason P. Marino
 

Name: Jason P. Marino
	 	 
	 

	 	 	 	Title: DIRECTOR	 	 
	 
	 	 	 	 	 	 
	 	 	Acting on behalf of itself	 	 
	 	 	and as a Representative	 	 
	 	 	of the Initial Purchasers	 	 
	 
	 	 	 	 	 	 
	Banc of America Securities LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ILLEGIBLE]
 

Name: [ILLEGIBLE]
	 	 
	 

	 	 	 	Title: [ILLEGIBLE]	 	 
	 
	 	 	 	 	 	 
	 	 	Acting on behalf of itself	 	 
	 	 	and as a Representative	 	 
	 	 	of the Initial Purchasers	 	 
	 
	 	 	 	 	 	 
	Guggenheim Securities, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul Friedman
 

Name: Paul Friedman
	 	 
	 

	 	 	 	Title: COO	 	 
	 
	 	 	 	 	 	 
	 	 	Acting on behalf of itself	 	 
	 	 	and as a Representative	 	 
	 	 	of the Initial Purchasers	 	 

[Signature Page to Registration Rights Agreement]

 

 

ANNEX A

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale
of such Exchange Securities. The Letter of Transmittal states that, by so acknowledging and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer in connection with resales of Exchange
Securities received in exchange for Initial Securities where such Initial Securities were
acquired by such broker-dealer as a result of market-making activities or other trading
activities. The Company has agreed that, for a period of 180 days after the Expiration Date (as
defined herein), it will make this Prospectus available to any broker-dealer for use in
connection with any such resale. See “Plan of Distribution.”

 

 

ANNEX B

     Each broker-dealer that receives Exchange Securities for its own account in exchange for
Securities, where such Initial Securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities, must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. See “Plan of
Distribution.”

 

 

ANNEX C

PLAN OF DISTRIBUTION

     Each broker-dealer that receives Exchange Securities for its own account  pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale
of such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to
time, may be used by a broker-dealer in connection with resales of Exchange Securities received
in exchange for Initial Securities where such Initial Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed that, for a period
of 180 days after the Expiration Date, it will make this prospectus, as amended or supplemented,
available to any broker-dealer for use in connection with any such resale. In addition, until      ,
201 , all dealers effecting transactions in the Exchange Securities may be required to deliver a
prospectus.(1)

     The Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers. Exchange Securities received by broker-dealers for their own account pursuant to
the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the
Exchange Securities or a combination of such methods of resale, at market prices prevailing at
the time of resale, at prices related to such prevailing market prices or negotiated prices. Any
such resale may be made directly to purchasers or to or through brokers or dealers who may
receive compensation in the form of commissions or concessions from any such broker-dealer or
the purchasers of any such Exchange Securities. Any broker-dealer that resells Exchange
Securities that were received by it for its own account pursuant to the Exchange Offer and any
broker or dealer that participates in a distribution of such Exchange Securities may be deemed
to be an “underwriter” within the meaning of the Securities Act, and any profit on any such
resale of Exchange Securities and any commission or concessions received by any such persons
may be deemed to be underwriting compensation under the Securities Act. The Letter of
Transmittal states that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.

     For a period of 180 days after the Expiration Date, the Company will promptly send
additional copies of this Prospectus and any amendment or supplement to this Prospectus to any
broker-dealer that requests such documents in the Letter of Transmittal. The Company has agreed
to pay all expenses incident to the Exchange Offer (including the expenses of one counsel for
the Holders) other than commissions or concessions of any brokers or dealers and will indemnify
the Holders (including any broker-dealers) against certain liabilities, including liabilities
under the Securities Act.

 

			
	(1)	 	In addition, the legend required by Item 502(e) of Regulation S-K
will appear on the back cover page of the Exchange Offer prospectus.

 

 

ANNEX D

o CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE
PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

Name:                     
                                        

Address:                                         
               

                                        
                                

If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged
in, and does not intend to engage in, a distribution of Exchange
Securities. If the undersigned
is a broker-dealer that will receive Exchange Securities for its own account in exchange for
Initial Securities that were acquired as a result of market-making activities or other trading
activities, it acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a prospectus, the
undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.

 

 

Schedule I

List of Guarantors

	 	 	 
	Entity Name	 	Jurisdiction of Organization
	 
	Diamond Resorts Parent, LLC

	 	DE
	Diamond Resorts Holdings, LLC

	 	DE
	AKGI Poipu Investments, Inc.

	 	CA
	AKGI-St. Maarten N.V.

	 	DE
	Chestnut
Farms, LLC

	 	NV
	Cumberland Gate, LLC

	 	DE
	Diamond Resorts Beach Group, LLC

	 	DE
	Diamond Resorts California Collection Development, LLC

	 	DE
	Diamond Resorts Centralized Services Company

	 	DE
	Diamond Resorts Citrus Share Holding, LLC

	 	DE
	Diamond Resorts Coral Sands Development, LLC

	 	DE
	Diamond Resorts Cypress Pointe I Development, LLC

	 	DE
	Diamond Resorts Cypress Pointe II Development, LLC

	 	DE
	Diamond Resorts Cypress Pointe III Development, LLC

	 	DE
	Diamond Resorts Daytona Development, LLC

	 	DE
	Diamond Resorts Developer and Sales Holding Company

	 	DE
	Diamond Resorts Epic Mortgage Holdings, LLC

	 	DE
	Diamond Resorts Fall Creek Development, LLC

	 	DE
	Diamond Resorts Finance Holding Company

	 	DE
	Diamond Resorts Financial Services, Inc.

	 	NV
	Diamond Resorts Grand Beach I Development, LLC

	 	DE
	Diamond Resorts Grand Beach II Development, LLC

	 	DE
	Diamond Resorts Greensprings Development, LLC

	 	DE
	Diamond Resorts Hawaii Collection Development, LLC

	 	DE
	Diamond Resorts Hilton Head Development, LLC

	 	DE
	Diamond Resorts International Club, Inc.

	 	FL
	Diamond Resorts International Marketing, Inc.

	 	CA
	Diamond Resorts Las Vegas Development, LLC

	 	DE
	Diamond Resorts Management and Exchange Holding Company

	 	DE
	Diamond Resorts Management, Inc.

	 	AZ
	Diamond Resorts Mazatlan Land, LLC

	 	DE

 

 

	 	 	 
	Entity Name	 	Jurisdiction of Organization
	 
	Diamond Resorts Mexico Share Holding, LLC

	 	DE
	Diamond
Resorts Mortgage Holdings, LLC

	 	DE
	Diamond Resorts Palm Springs Development, LLC

	 	DE
	Diamond Resorts Poco Diablo Development, LLC

	 	DE
	Diamond Resorts Poipu Development, LLC

	 	DE
	Diamond Resorts Polo Development, LLC

	 	NV
	Diamond Resorts Port Royal Development, LLC

	 	DE
	Diamond Resorts Powhatan Development, LLC

	 	DE
	Diamond Resorts Residual Assets Development, LLC

	 	DE
	Diamond Resorts Residual Assets Finance, LLC

	 	DE
	Diamond Resorts Residual Assets M&E, LLC

	 	DE
	Diamond Resorts Ridge on Sedona Development, LLC

	 	DE
	Diamond Resorts Ridge Pointe Development, LLC

	 	DE
	Diamond Resorts San Luis Bay Development, LLC

	 	DE
	Diamond Resorts Santa Fe Development, LLC

	 	DE
	Diamond Resorts Scottsdale Development, LLC

	 	DE
	Diamond Resorts Sedona Springs Development, LLC

	 	DE
	Diamond Resorts Sedona Summit Development, LLC

	 	DE
	Diamond Resorts St. Croix Development, LLC

	 	DE
	Diamond Resorts Steamboat Development, LLC

	 	DE
	Diamond Resorts Tahoe Beach & Ski Development, LLC

	 	DE
	Diamond Resorts U.S. Collection Development, LLC

	 	DE
	Diamond Resorts Villa Mirage Development, LLC

	 	DE
	Diamond Resorts Villas of Sedona Development, LLC

	 	DE
	Diamond Resorts West Maui Development, LLC

	 	DE
	Foster Shores, LLC

	 	MO
	George Acquisition Subsidiary, Inc.

	 	NV
	Ginger Creek, LLC

	 	DE
	Grand Escapes, LLC

	 	DE
	International Timeshares Marketing, LLC

	 	DE
	Lake Tahoe Resort Partners, LLC

	 	CA
	Mazatlan Development Inc.

	 	WA
	MMG Development Corp.

	 	FL
	Poipu Resort Partners, L.P.

	 	HI

 

 

	 	 	 
	Entity Name	 	Jurisdiction of Organization
	 
	Resort Management International, Inc.

	 	CA
	Resorts Development International, Inc.

	 	NV
	Sunterra Resort Rental Management, Inc.

	 	DE
	Walsham Lake, LLC

	 	MO
	West Maui Resort Partners, L.P.

	 	DE

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