Document:

exv10w4

Exhibit 10.4

Execution Copy

DIAMOND RESORTS OWNER TRUST 2009-1,

as Issuer

DIAMOND RESORTS FINANCIAL SERVICES, INC.

as Servicer

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Indenture Trustee and Back-Up Servicer

 

INDENTURE

Dated as of October 1, 2009

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION
	 	 	2	 
	 
	 	 	 	 
	Section 1.01 General Definitions
	 	 	2	 
	 
	 	 	 	 
	Section 1.02 Compliance Certificates and Opinions
	 	 	2	 
	 
	 	 	 	 
	Section 1.03 Form of Documents Delivered to Indenture Trustee
	 	 	2	 
	 
	 	 	 	 
	Section 1.04 Acts of Noteholders, etc
	 	 	3	 
	 
	 	 	 	 
	Section 1.05 Notice to Noteholders; Waiver
	 	 	4	 
	 
	 	 	 	 
	Section 1.06 Effect of Headings and Table of Contents
	 	 	5	 
	 
	 	 	 	 
	Section 1.07 Successors and Assigns
	 	 	5	 
	 
	 	 	 	 
	Section 1.08 Governing Law
	 	 	5	 
	 
	 	 	 	 
	Section 1.09 Legal Holidays
	 	 	5	 
	 
	 	 	 	 
	Section 1.10 Execution in Counterparts
	 	 	5	 
	 
	 	 	 	 
	Section 1.11 Inspection
	 	 	6	 
	 
	 	 	 	 
	Section 1.12 Survival of Representations and Warranties
	 	 	6	 
	 
	 	 	 	 
	ARTICLE II THE NOTES
	 	 	6	 
	 
	 	 	 	 
	Section 2.01 General Provisions
	 	 	6	 
	 
	 	 	 	 
	Section 2.02 Global Notes
	 	 	7	 
	 
	 	 	 	 
	Section 2.03 Definitive Notes
	 	 	8	 
	 
	 	 	 	 
	Section 2.04 Registration, Transfer and Exchange of Notes
	 	 	8	 
	 
	 	 	 	 
	Section 2.05 Mutilated, Destroyed, Lost and Stolen Notes
	 	 	12	 
	 
	 	 	 	 
	Section 2.06 Payment of Interest and Principal; Rights Preserved
	 	 	13	 
	 
	 	 	 	 
	Section 2.07 Persons Deemed Owners
	 	 	13	 
	 
	 	 	 	 
	Section 2.08 Cancellation
	 	 	14	 
	 
	 	 	 	 
	Section 2.09 Noteholder Lists
	 	 	14	 

i

 

	 	 	 	 	 
	Section 2.10 Treasury Notes
	 	 	14	 
	 
	 	 	 	 
	Section 2.11 Notice to Depository
	 	 	14	 
	 
	 	 	 	 
	ARTICLE III ACCOUNTS; COLLECTION AND APPLICATION OF MONEYS;
REPORTS
	 	 	15	 
	 
	 	 	 	 
	Section 3.01 Trust Accounts; Investments by Indenture Trustee
	 	 	15	 
	 
	 	 	 	 
	Section 3.02 Establishment and Administration of the Trust Accounts
	 	 	17	 
	 
	 	 	 	 
	Section 3.03 [Reserved]
	 	 	19	 
	 
	 	 	 	 
	Section 3.04 Distributions
	 	 	19	 
	 
	 	 	 	 
	Section 3.05 Reports to Noteholders
	 	 	20	 
	 
	 	 	 	 
	Section 3.06 Note Balance Write-Down Amounts
	 	 	21	 
	 
	 	 	 	 
	Section 3.07 Withholding Taxes
	 	 	21	 
	 
	 	 	 	 
	ARTICLE IV THE TRUST ESTATE
	 	 	21	 
	 
	 	 	 	 
	Section 4.01 Acceptance by Indenture Trustee
	 	 	21	 
	 
	 	 	 	 
	Section 4.02 Grant of Security Interest; Tax Treatment
	 	 	22	 
	 
	 	 	 	 
	Section 4.03 Further Action Evidencing Assignments
	 	 	22	 
	 
	 	 	 	 
	Section 4.04 Substitution and Repurchase of Timeshare Loans
	 	 	23	 
	 
	 	 	 	 
	Section 4.05 Release of Lien
	 	 	24	 
	 
	 	 	 	 
	Section 4.06 Appointment of Custodian
	 	 	25	 
	 
	 	 	 	 
	Section 4.07 Sale of Timeshare Loans
	 	 	25	 
	 
	 	 	 	 
	ARTICLE V SERVICING OF TIMESHARE LOANS
	 	 	25	 
	 
	 	 	 	 
	Section 5.01 Appointment of Servicer; Servicing Standard
	 	 	25	 
	 
	 	 	 	 
	Section 5.02 Payments on the Timeshare Loans
	 	 	25	 
	 
	 	 	 	 
	Section 5.03 Duties and Responsibilities of the Servicer
	 	 	27	 
	 
	 	 	 	 
	Section 5.04 Servicer Events of Default
	 	 	30	 
	 
	 	 	 	 
	Section 5.05 Accountings; Statements and Reports
	 	 	31	 
	 
	 	 	 	 
	Section 5.06 Records
	 	 	33	 

ii

 

	 	 	 	 	 
	Section 5.07 Fidelity Bond; Errors and Omissions Insurance
	 	 	33	 
	 
	 	 	 	 
	Section 5.08 Merger or Consolidation of the Servicer
	 	 	34	 
	 
	 	 	 	 
	Section 5.09 Sub-Servicing
	 	 	34	 
	 
	 	 	 	 
	Section 5.10 Servicer Resignation
	 	 	34	 
	 
	 	 	 	 
	Section 5.11 Fees and Expenses
	 	 	35	 
	 
	 	 	 	 
	Section 5.12 Access to Certain Documentation
	 	 	35	 
	 
	 	 	 	 
	Section 5.13 No Offset
	 	 	35	 
	 
	 	 	 	 
	Section 5.14 Cooperation
	 	 	35	 
	 
	 	 	 	 
	Section 5.15 Indemnification; Third Party Claim
	 	 	36	 
	 
	 	 	 	 
	Section 5.16 Back-Up Servicer and Successor Servicer
	 	 	36	 
	 
	 	 	 	 
	Section 5.17 Limitation on Liability
	 	 	39	 
	 
	 	 	 	 
	Section 5.18 Recordation
	 	 	39	 
	 
	 	 	 	 
	Section 5.19 St. Maarten Notice
	 	 	39	 
	 
	 	 	 	 
	ARTICLE VI EVENTS OF DEFAULT; REMEDIES
	 	 	39	 
	 
	 	 	 	 
	Section 6.01 Events of Default
	 	 	39	 
	 
	 	 	 	 
	Section 6.02 Acceleration of Maturity; Rescission and Annulment
	 	 	41	 
	 
	 	 	 	 
	Section 6.03 Remedies
	 	 	42	 
	 
	 	 	 	 
	Section 6.04 Indenture Trustee May File Proofs of Claim
	 	 	43	 
	 
	 	 	 	 
	Section 6.05 Indenture Trustee May Enforce Claims Without Possession of
Notes
	 	 	44	 
	 
	 	 	 	 
	Section 6.06 Application of Money Collected
	 	 	44	 
	 
	 	 	 	 
	Section 6.07 Limitation on Suits
	 	 	45	 
	 
	 	 	 	 
	Section 6.08 Unconditional Right of Noteholders to Receive Principal and
Interest
	 	 	45	 
	 
	 	 	 	 
	Section 6.09 Restoration of Rights and Remedies
	 	 	46	 
	 
	 	 	 	 
	Section 6.10 Rights and Remedies Cumulative
	 	 	46	 

iii

 

	 	 	 	 	 
	Section 6.11 Delay or Omission Not Waiver
	 	 	46	 
	 
	 	 	 	 
	Section 6.12 Control by Noteholders
	 	 	46	 
	 
	 	 	 	 
	Section 6.13 Waiver of Events of Default
	 	 	47	 
	 
	 	 	 	 
	Section 6.14 Undertaking for Costs
	 	 	47	 
	 
	 	 	 	 
	Section 6.15 Waiver of Stay or Extension Laws
	 	 	47	 
	 
	 	 	 	 
	Section 6.16 Sale of Trust Estate
	 	 	48	 
	 
	 	 	 	 
	ARTICLE VII THE INDENTURE TRUSTEE
	 	 	49	 
	 
	 	 	 	 
	Section 7.01 Certain Duties
	 	 	49	 
	 
	 	 	 	 
	Section 7.02 Notice of Events of Default and Rapid Amortization Period
	 	 	50	 
	 
	 	 	 	 
	Section 7.03 Certain Matters Affecting the Indenture Trustee
	 	 	50	 
	 
	 	 	 	 
	Section 7.04 Indenture Trustee Not Liable for Notes or Timeshare Loans
	 	 	51	 
	 
	 	 	 	 
	Section 7.05 Indenture Trustee May Own Notes
	 	 	52	 
	 
	 	 	 	 
	Section 7.06 Indenture Trustee’s Fees and Expenses
	 	 	52	 
	 
	 	 	 	 
	Section 7.07 Eligibility Requirements for Indenture Trustee
	 	 	52	 
	 
	 	 	 	 
	Section 7.08 Resignation or Removal of Indenture Trustee
	 	 	52	 
	 
	 	 	 	 
	Section 7.09 Successor Indenture Trustee
	 	 	53	 
	 
	 	 	 	 
	Section 7.10 Merger or Consolidation of Indenture Trustee
	 	 	54	 
	 
	 	 	 	 
	Section 7.11 Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	 	 	54	 
	 
	 	 	 	 
	Section 7.12 Note Registrar Rights
	 	 	56	 
	 
	 	 	 	 
	Section 7.13 Authorization
	 	 	56	 
	 
	 	 	 	 
	ARTICLE VIII COVENANTS
	 	 	56	 
	 
	 	 	 	 
	Section 8.01 Payment of Principal and Interest
	 	 	56	 
	 
	 	 	 	 
	Section 8.02 Maintenance of Office or Agency; Chief Executive Office
	 	 	56	 
	 
	 	 	 	 
	Section 8.03 Money for Payments to Noteholders to be Held in Trust
	 	 	57	 
	 
	 	 	 	 
	Section 8.04 Existence; Merger; Consolidation, etc
	 	 	57	 

iv

 

	 	 	 	 	 
	Section 8.05 Protection of Trust Estate; Further Assurances
	 	 	58	 
	 
	 	 	 	 
	Section 8.06 Additional Covenants
	 	 	59	 
	 
	 	 	 	 
	Section 8.07 Taxes
	 	 	60	 
	 
	 	 	 	 
	Section 8.08 Treatment of Note as Debt for Tax Purposes
	 	 	60	 
	 
	 	 	 	 
	ARTICLE IX SUPPLEMENTAL INDENTURES
	 	 	60	 
	 
	 	 	 	 
	Section 9.01 Supplemental Indentures without Consent of Noteholders
	 	 	60	 
	 
	 	 	 	 
	Section 9.02 Supplemental Indentures with Consent of Noteholders
	 	 	61	 
	 
	 	 	 	 
	Section 9.03 Execution of Supplemental Indentures
	 	 	62	 
	 
	 	 	 	 
	Section 9.04 Effect of Supplemental Indentures
	 	 	62	 
	 
	 	 	 	 
	Section 9.05 Reference in Notes to Supplemental Indentures
	 	 	62	 
	 
	 	 	 	 
	ARTICLE X REDEMPTION OF NOTES
	 	 	63	 
	 
	 	 	 	 
	Section 10.01 Optional Redemption; Election to Redeem
	 	 	63	 
	 
	 	 	 	 
	Section 10.02 Notice to Indenture Trustee
	 	 	63	 
	 
	 	 	 	 
	Section 10.03 Notice of Redemption by the Issuer
	 	 	63	 
	 
	 	 	 	 
	Section 10.04 Deposit of Redemption Price
	 	 	63	 
	 
	 	 	 	 
	Section 10.05 Notes Payable on Redemption Date
	 	 	63	 
	 
	 	 	 	 
	ARTICLE XI SATISFACTION AND DISCHARGE
	 	 	63	 
	 
	 	 	 	 
	Section 11.01 Satisfaction and Discharge of Indenture
	 	 	63	 
	 
	 	 	 	 
	Section 11.02 Application of Trust Money
	 	 	65	 
	 
	 	 	 	 
	Section 11.03 Trust Termination Date
	 	 	65	 
	 
	 	 	 	 
	ARTICLE XII REPRESENTATIONS AND WARRANTIES
	 	 	65	 
	 
	 	 	 	 
	Section 12.01 Representations and Warranties of the Issuer
	 	 	65	 
	 
	 	 	 	 
	Section 12.02 Representations and Warranties of the Initial Servicer
	 	 	68	 
	 
	 	 	 	 
	Section 12.03 Representations and Warranties of the Indenture Trustee and the
Back-Up Servicer
	 	 	70	 
	 
	 	 	 	 
	Section 12.04 Multiple Roles
	 	 	72	 

v

 

	 	 	 	 	 
	ARTICLE XIII MISCELLANEOUS
	 	 	72	 
	 
	 	 	 	 
	Section 13.01 Officer’s Certificate and Opinion of Counsel as to Conditions
Precedent
	 	 	72	 
	 
	 	 	 	 
	Section 13.02 Statements Required in Certificate or Opinion
	 	 	72	 
	 
	 	 	 	 
	Section 13.03 Notices
	 	 	73	 
	 
	 	 	 	 
	Section 13.04 No Proceedings
	 	 	74	 
	 
	 	 	 	 
	Section 13.05 Limitation of Liability
	 	 	74	 
	 
	 	 	 	 
	Section 13.06 Binding Nature of Indenture; Assignment
	 	 	75	 
	 
	 	 	 	 
	Section 13.07 Entire Agreement
	 	 	75	 
	 
	 	 	 	 
	Section 13.08 Severability of Provisions
	 	 	75	 
	 
	 	 	 	 
	Section 13.09 Indulgences; No Waivers
	 	 	75	 

	 	 	 

	Exhibit A

	 	Form of Notes
	 
	 	 
	Exhibit B

	 	Form of Investor Representation Letter
	 
	 	 
	Exhibit C

	 	Form of Transfer Certificate for Rule 144A Global Notes to Regulation S
Global Notes during Restricted Period
	 
	 	 
	Exhibit D

	 	Form of Transfer Certificate for Rule 144A Global Notes to Regulation S
Global Notes after Restricted Period
	 
	 	 
	Exhibit E

	 	Form of Transfer Certificate for Regulation S Global Notes to Rule 144A
Global Note during Restricted Period
	 
	 	 
	Exhibit F

	 	Form of Transfer Certificate for Regulation S Global Notes during
Restricted Period
	 
	 	 
	Exhibit G

	 	Record Layout For Data Conversion
	 
	 	 
	Exhibit H

	 	[Reserved]
	 
	 	 
	Exhibit I

	 	Credit and Collection Policy
	 
	 	 
	Exhibit J

	 	Form of Monthly Servicer Report
	 
	 	 
	Exhibit K

	 	Servicing Officer’s Certificate
	 
	 	 
	Exhibit L

	 	[Reserved]
	 
	 	 
	Exhibit M

	 	[Reserved]

vi

 

	 	 	 

	Exhibit N

	 	Form of St. Maarten Notice
	 
	 	 
	Annex A

	 	Standard Definitions

vii

 

INDENTURE

          This INDENTURE, dated as of October 1, 2009, is among DIAMOND RESORTS OWNER TRUST 2009-1, a
statutory trust organized under the laws of the State of Delaware, as issuer (the “Issuer”),
Diamond Resorts Financial Services, Inc. (“DRFS”), a Nevada corporation, as servicer (the
“Servicer”) and Wells Fargo Bank, National Association, a national banking association, as
indenture trustee (in such capacity, the “Indenture Trustee”) and as back-up servicer (in such
capacity, the “Back-Up Servicer”).

RECITALS OF THE ISSUER

          WHEREAS, the Issuer has duly authorized the execution and delivery of this Indenture to
provide for the issuance of its $169,200,000 9.31% Timeshare Loan Backed Notes, Series 2009-1,
Class A (the “Class A Notes”) and its $12,800,000 12.00% Timeshare Loan Backed Notes, Series
2009-1, Class B (the “Class B Notes”, and together with the Class A Notes, the “Notes”);

          WHEREAS, all things necessary to make the Notes, when executed by the Issuer and authenticated
and delivered by the Indenture Trustee hereunder, the valid recourse obligations of the Issuer, and
to make this Indenture a valid agreement of the Issuer, in accordance with its terms, have been
done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For and in consideration of the premises and the purchase of the Notes by the holders thereof,
it is mutually covenanted and agreed, for the benefit of the Noteholders, as follows:

GRANTING CLAUSE

          To secure the payment of the principal of and interest on the Notes in accordance with their
terms, the payment of all of the sums payable under this Indenture and the performance of the
covenants contained in this Indenture, the Issuer hereby Grants to the Indenture Trustee, for the
benefit of the Noteholders, all of the Issuer’s right, title and interest in and to the following
whether now owned or hereafter acquired and any and all benefits accruing to the Issuer from, (i)
the Initial Timeshare Loans, (ii) the Qualified Substitute Timeshare Loans, if any, (iii) the
Receivables in respect of the Timeshare Loans due on and after the
related Cut-Off Date, (iv) the
related Timeshare Loan Files, (v) all Related Security in respect of each Timeshare Loan, (vi) all
rights and remedies under the Sale Agreement, (vii) all rights and remedies under the Custodial
Agreement, (viii) all rights and remedies under the Servicer Undertaking Agreement and the Seller
Undertaking Agreement, (ix) all amounts in or to be deposited to each Trust Account, and (x)
proceeds of the foregoing (including, without limitation, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, Insurance
Proceeds, condemnation awards, rights to payment of any and every kind, and other forms of
obligations and receivables which at any time constitute all or part or are included in the
proceeds of any of the foregoing) (collectively, the “Trust Estate”).
Notwithstanding the foregoing, the Trust Estate shall not include any Miscellaneous Payments
and Processing Charges made by an Obligor.

1

 

          Such Grant is made in trust to secure (i) the payment of all amounts due on the Notes in
accordance with their terms, equally and ratably except as otherwise may be provided in this
Indenture, without prejudice, priority, or distinction between any Note of the same Class and any
other Note of the same Class by reason of differences in time of issuance or otherwise, and (ii)
the payment of all other sums payable under the Notes and this Indenture.

          The Indenture Trustee acknowledges such Grant, accepts the trusts hereunder in accordance with
the provisions hereof, and agrees to perform the duties herein required to the best of its ability
and to the end that the interests of the Noteholders may be adequately and effectively protected as
hereinafter provided.

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

          Section 1.01 General Definitions.

          In addition to the terms defined elsewhere in this Indenture, capitalized terms shall have the
meanings given them in the “Standard Definitions” attached hereto as Annex A.

          Section 1.02 Compliance Certificates and Opinions.

          Upon any written application or request (or oral application with prompt written or electronic
confirmation) by the Issuer to the Indenture Trustee to take any action under any provision of this
Indenture, other than any request that (a) the Indenture Trustee authenticate the Notes specified
in such request, (b) the Indenture Trustee invest moneys in any of the Trust Accounts pursuant to
the written directions specified in such request, or (c) the Indenture Trustee pay moneys due and
payable to the Issuer hereunder to the Issuer’s assignee specified in such request, the Indenture
Trustee shall require the Issuer to furnish to the Indenture Trustee an Officer’s Certificate
stating that all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and that the request otherwise is in accordance with the
terms of this Indenture, and an Opinion of Counsel stating that in the opinion of such counsel all
such conditions precedent, if any, have been complied with, except that, in the case of any such
requested action as to which other evidence of satisfaction of the conditions precedent thereto is
specifically required by any provision of this Indenture, no additional certificate or opinion need
be furnished.

          Section 1.03 Form of Documents Delivered to Indenture Trustee.

          In any case where several matters are required to be certified by, or covered by an opinion of
any specified Person, it is not necessary that all such matters be certified by, or covered by the
opinion of only one such Person, or that they be so certified or covered by only one document, but
one such Person may certify or give an opinion with respect to some matters
and one or more other such Persons as to other matters, and any such Person may certify or
give an opinion as to such matters in one or several documents.

2

 

          Any certificate or opinion of an officer of the Issuer delivered to the Indenture Trustee may
be based, insofar as it relates to legal matters, upon an Opinion of Counsel, unless such officer
knows that such Opinion of Counsel with respect to the matters upon which his certificate or
opinion is based is erroneous. Any such officer’s certificate or opinion and any Opinion of Counsel
may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Issuer as to such factual matters unless such
officer or counsel knows that the certificate or opinion or representations with respect to such
matters are erroneous. Any Opinion of Counsel may be based on the written opinion of other
counsel, in which event such Opinion of Counsel shall be accompanied by a copy of such other
counsel’s opinion and shall include a statement to the effect that such counsel believes that such
counsel and the Indenture Trustee may reasonably rely upon the opinion of such other counsel.

          Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

          Wherever in this Indenture, in connection with any application or certificate or report to the
Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the
granting of such application, or as evidence of compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or at the effective
date of such certificate or report (as the case may be), of the facts and opinions stated in such
document shall in such case be conditions precedent to the right of the Issuer to have such
application granted or to the sufficiency of such certificate or report. The foregoing shall not,
however, be construed to affect the Indenture Trustee’s right to rely upon the truth and accuracy
of any statement or opinion contained in any such document as provided in Section 7.01(b) hereof.

          Whenever in this Indenture it is provided that the absence of the occurrence and continuation
of a Default, Event of Default, Servicer Event of Default or a Rapid Amortization Period is a
condition precedent to the taking of any action by the Indenture Trustee at the request or
direction of the Issuer, then, notwithstanding that the satisfaction of such condition is a
condition precedent to the Issuer’s right to make such request or direction, the Indenture Trustee
shall be protected in acting in accordance with such request or direction if it does not have
knowledge of the occurrence and continuation of such event. For all purposes of this Indenture, the
Indenture Trustee shall not be deemed to have knowledge of any Default, Event of Default, Servicer
Event of Default or a Rapid Amortization Period nor shall the Indenture Trustee have any duty to
monitor or investigate to determine whether a Default, an Event of Default (other than an Event of
Default of the kind described in Section 6.01(a) hereof), a Servicer Event of Default or a Rapid
Amortization Period has occurred unless a Responsible Officer of the Indenture Trustee shall have
actual knowledge thereof or shall have been notified in writing thereof by the Issuer, the Servicer
or any Noteholder.

          Section 1.04 Acts of Noteholders, etc.

          (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Noteholders may be embodied in and

3

 

evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in
person or by agents duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are delivered to the
Indenture Trustee and, where it is hereby expressly required, to the Issuer. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred
to as the “Act” of the Noteholders signing such instrument or instruments. Proof of execution of
any such instrument or of a writing appointing any such agent shall be sufficient for any purpose
of this Indenture and (subject to Section 7.01 hereof) conclusive in favor of the Indenture Trustee
and the Issuer, if made in the manner provided in this Section 1.04.

          (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Indenture Trustee deems sufficient.

          (c) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
holder of any Note shall bind every future holder of the same Note and the holder of every Note
issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Issuer in
reliance thereon, whether or not notation of such action is made upon such Note.

          (d) By accepting the Notes issued pursuant to this Indenture, each Noteholder irrevocably
appoints the Indenture Trustee hereunder as the special attorney-in-fact for such Noteholder vested
with full power on behalf of such Noteholder to effect and enforce the rights of such Noteholder
for the benefit of such Noteholder; provided that nothing contained in this Section 1.04(d) shall
be deemed to confer upon the Indenture Trustee any duty or power to vote on behalf of the
Noteholders with respect to any matter on which the Noteholders have a right to vote pursuant to
the terms of this Indenture.

          Section 1.05 Notice to Noteholders; Waiver.

          (a) Where this Indenture provides for notice to Noteholders of any event, or the mailing of
any report to Noteholders, such notice or report shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, certified mail return receipt requested, or
sent by private courier or confirmed electronically to each Noteholder affected by such event or to
whom such report is required to be mailed, at its address as it appears in the Note Register, not
later than the latest date, and not earlier than the earliest date, prescribed for the giving of
such notice or the mailing of such report. In any case where a notice or report to Noteholders is
mailed, neither the failure to mail such notice or report, nor any defect in any notice or report
so mailed, to any particular Noteholder shall affect the sufficiency of such notice or report with
respect to other Noteholders. Where this Indenture provides for notice in any

4

 

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 Noteholders shall be filed with the Indenture Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such waiver.

          (b) In case by reason of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to mail or send notice to Noteholders, in accordance with Section
1.05(a) hereof, of any event or any report to Noteholders when such notice or report is required to
be delivered pursuant to any provision of this Indenture, then such notification or delivery as
shall be made with the approval of the Indenture Trustee shall constitute a sufficient notification
for every purpose hereunder.

          Section 1.06 Effect of Headings and Table of Contents.

          The Article and Section headings herein and in the Table of Contents are for convenience only
and shall not affect the construction hereof.

          Section 1.07 Successors and Assigns.

          All covenants and agreements in this Indenture by each of the parties hereto shall bind its
respective successors and permitted assigns, whether so expressed or not.

          Section 1.08
GOVERNING LAW.

          THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK. UNLESS MADE APPLICABLE IN A SUPPLEMENT HERETO, THIS
INDENTURE IS NOT SUBJECT TO THE TRUST INDENTURE ACT OF 1939, AS AMENDED, AND SHALL NOT BE GOVERNED
THEREBY AND CONSTRUED IN ACCORDANCE THEREWITH.

          Section 1.09 Legal Holidays.

          In any case where any Payment Date or the Stated Maturity or any other date on which principal
of or interest on any Note is proposed to be paid shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or of the Notes) such payment need not be
made on such date, but may be made on the next succeeding Business Day with the same force and
effect as if made on such Payment Date, Stated Maturity, or other date on which principal of or
interest on any Note is proposed to be paid, provided that no penalty interest shall accrue for the
period from and after such Payment Date, Stated Maturity, or any other date on which principal of
or interest on any Note is proposed to be paid, as the case may be, until such next succeeding
Business Day.

          Section 1.10 Execution in Counterparts.

          This Indenture may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

5

 

          Section 1.11 Inspection.

          The Issuer agrees that, on reasonable prior notice, it will permit the representatives of the
Indenture Trustee or any Noteholder holding Notes evidencing at least 25% of the Aggregate
Outstanding Note Balance, during the Issuer’s normal business hours, to examine all of the books of
account, records, reports and other papers of the Issuer, to make copies thereof and extracts
therefrom, and to discuss its affairs, finances and accounts with its designated officers,
employees and independent accountants in the presence of such designated officers and employees
(and by this provision the Issuer hereby authorizes its accountants to discuss with such
representatives such affairs, finances and accounts), all at such reasonable times and as often as
may be reasonably requested for the purpose of reviewing or evaluating the financial condition or
affairs of the Issuer or the performance of and compliance with the covenants and undertakings of
the Issuer and the Servicer in this Indenture or any of the other documents referred to herein or
therein. Any expense incident to the exercise by the Indenture Trustee at any time or any
Noteholder during the continuance of any Default, Event of Default or Rapid Amortization Period, of
any right under this Section 1.11 shall be borne by the Issuer. Nothing contained herein shall be
construed as a duty of the Indenture Trustee to perform such inspection.

          Section 1.12 Survival of Representations and Warranties.

          The representations, warranties and certifications of the Issuer made in this Indenture or in
any certificate or other writing delivered by the Issuer pursuant hereto shall survive the
authentication and delivery of the Notes hereunder.

ARTICLE II

THE NOTES

          Section 2.01 General Provisions.

          (a) Form of Notes. The Notes, together with their certificates of authentication shall be in
substantially the form set forth in Exhibit A hereto, with such appropriate insertions,
omissions, substitutions and other variations as are required or are permitted by this Indenture,
and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon, as may consistently herewith be determined by the officer executing
such Notes, as evidenced by such officer’s execution of such Notes.

          (b) Denominations. The Outstanding Note Balance of the Class A Notes and the Class B Notes
which may be authenticated and delivered under this Indenture is limited to $169,200,000 and
$12,800,000, respectively. The Notes shall be issuable only as registered Notes without interest
coupons in the denominations of at least $100,000 and in integral multiples of $1,000; provided,
however, that the foregoing shall not restrict or prevent the transfer in accordance with Section
2.04 hereof of any Note with a remaining Outstanding Note Balance of less than $100,000.

          (c) Execution, Authentication, Delivery and Dating. The Notes shall be manually executed on
behalf of the Issuer by an Authorized Officer of the Owner Trustee. Any Note

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bearing the signature of an individual who was at the time of execution thereof an Authorized
Officer of the Owner Trustee shall bind the Issuer, notwithstanding that such individual ceases to
hold such office prior to the authentication and delivery of such Note or did not hold such office
at the date of such Note. No Note shall be entitled to any benefit under this Indenture or be valid
or obligatory for any purpose unless there appears on such Note a certificate of authentication
substantially in the form set forth in Exhibit A hereto, executed by the Indenture Trustee by
manual signature, and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder. Each Note shall be
dated the date of its authentication. The Notes may from time to time be executed by the Issuer and
delivered to the Indenture Trustee for authentication together with an Issuer Order to the
Indenture Trustee directing the authentication and delivery of such Notes and thereupon the same
shall be authenticated and delivered by the Indenture Trustee in accordance with such Issuer Order.

          Section 2.02 Global Notes. Each of the Notes, upon original issuance, shall be issued
in the form of one or more book-entry global certificates (the “Global Notes” and each, a “Global
Note”) to be deposited with the Indenture Trustee, as custodian for The Depository Trust Company,
the initial Depository, by or on behalf of the Issuer. The Notes sold to non-U.S. persons (as
defined in Regulation S) in offshore transactions in reliance on Regulation S will be represented
by one or more temporary Global Notes (each, a “Temporary Regulation S Global Notes”). Upon the
expiration of the Restricted Period, interests in a Temporary Regulation S Global Note will be
exchangeable for interests in permanent Global Notes of the same Class (together with a Temporary
Regulation S Global Note, a “Regulation S Global Note”). The Notes sold to U.S. Persons which are
Qualified Institutional Buyers will be represented by one or more temporary Global Notes (each, a
“Rule 144A Global Note”). All Global Notes shall be initially registered on the Note Register in
the name of Cede & Co., the nominee of The Depository Trust Company, and no Note Owner will receive
a definitive note (a “Definitive Note”) representing such Note Owner’s interest in the related
Class of Notes, except as provided in Section 2.03 hereof. Unless and until Definitive Notes have
been issued in respect of a Class of Notes pursuant to Section 2.03 hereof:

          (a) the provisions of this Section 2.02 shall be in full force and effect with respect to such
Class of Notes;

          (b) the Issuer, the Servicer and the Indenture Trustee may deal with the Depository and the
Depository Participants for all purposes with respect to such Notes (including the making of
distributions on such Notes) as the authorized representatives of the respective Note Owners;

          (c) to the extent that the provisions of this Section 2.02 conflict with any other provisions
of this Indenture, the provisions of this Section 2.02 shall control; and

          (d) the rights of the respective Note Owners of a Class of Notes shall be exercised only
through the Depository and the Depository Participants and shall be limited to those established by
law and agreements between the respective Note Owners and the Depository
and/or the Depository Participants. Pursuant to the Depository Agreement, unless and until
Definitive Notes are issued in respect of the Notes pursuant to Section 2.03 hereof, the

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Depository will make book-entry transfers among the Depository Participants and receive and
transmit distributions of principal and interest on the Notes to the Depository Participants.

          Section 2.03 Definitive Notes. If (a) the Depository advises the Indenture Trustee in
writing that the Depository is no longer willing or able to properly discharge its responsibilities
as Depository with respect to the Global Notes and the Indenture Trustee or the Issuer is unable to
locate a qualified successor or (b) after the occurrence and during the continuation of an Event of
Default, Note Owners (other than DRC or an Affiliate thereof) evidencing not less than 51% of the
aggregate Outstanding Note Balance of a Class of Global Notes, advise the Indenture Trustee and the
Depository through the Depository Participants in writing that the continuation of a book-entry
system with respect to such Class of Global Notes through the Depository is no longer in the best
interest of such Note Owners, the Indenture Trustee shall use its best efforts to notify all
affected Note Owners through the Depository of the occurrence of any such event and of the
availability of Definitive Notes to such Note Owners. Neither the Issuer nor the Indenture Trustee
shall be liable for any delay in delivery of such instructions and may conclusively rely on, and
shall be protected in relying on, such instructions. Upon the issuance of Definitive Notes, the
Issuer, the Indenture Trustee, the Note Registrar and the Servicer shall recognize holders of
Definitive Notes as Noteholders hereunder. Upon the issuance of Definitive Notes, all references
herein to obligations imposed upon or to be performed by the Depository shall be deemed to be
imposed upon and performed by the Indenture Trustee, to the extent applicable with respect to such
Definitive Notes.

          Section 2.04 Registration, Transfer and Exchange of Notes.

          (a) Note Register. At all times during the term of this Indenture, the Issuer shall
cause to be kept at the Corporate Trust Office a register (the “Note Register”) for the
registration, transfer and exchange of Notes. The Indenture Trustee is hereby appointed “Note
Registrar” for purposes of registering Notes and transfers of Notes as herein provided. The names
and addresses of all Noteholders and the names and addresses of the transferees of any Notes shall
be registered in the Note Register; provided, however, in no event shall the Note Registrar be
required to maintain in the Note Register the names of the individual participants holding Notes
through the Depository. The Person in whose name any Note is so registered shall be deemed and
treated as the sole owner and Noteholder thereof for all purposes of this Indenture and the Note
Registrar, the Issuer, the Indenture Trustee, the Servicer and any agent of any of them shall not
be affected by any notice or knowledge to the contrary. A Definitive Note is transferable or
exchangeable only upon the surrender of such Note to the Note Registrar at the Corporate Trust
Office together with an assignment and transfer (executed by the Holder or his duly authorized
attorney), subject to the applicable requirements of this Section 2.04. Upon request of the
Indenture Trustee, the Note Registrar shall provide the Indenture Trustee with the names and
addresses of Noteholders.

          (b) Surrender. Upon surrender for registration of transfer of any Definitive Note,
subject to the applicable requirements of this Section 2.04, the Issuer shall execute and the
Indenture Trustee shall duly authenticate in the name of the designated transferee or transferees,
one or more new Notes in denominations of a like aggregate denomination as the Definitive Note
being surrendered. Each Note surrendered for registration of transfer shall be canceled and
subsequently destroyed by the Note Registrar. Each new Note issued pursuant to this Section

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2.04 shall be registered in the name of any Person as the transferring Holder may request, subject
to the applicable provisions of this Section 2.04. All Notes issued upon any registration of
transfer or exchange of Notes shall be entitled to the same benefits under this Indenture as the
Notes surrendered upon such registration of transfer or exchange.

          (c) Securities Laws Restrictions. The issuance of the Notes will not be registered or
qualified under the Securities Act or the securities laws of any state. No transfer of any Note may
be made unless that resale or transfer is made pursuant to an effective registration statement
under the Securities Act and an effective registration or a qualification under applicable state
securities laws, or is made in a transaction that does not require such registration or
qualification because the transfer satisfies one of the following: (i) such resale or transfer is
in compliance with Rule 144A under the Securities Act, to a person who the transferor reasonably
believes is a Qualified Institutional Buyer (as defined in Rule 144A) that is purchasing for its
own account or for the account of a Qualified Institutional Buyer and to whom notice is given that
such resale or transfer is being made in reliance upon Rule 144A under the Securities Act as
certified by such transferee (other than the Initial Purchaser and its initial transferees) in a
letter in the form of Exhibit B hereto; (ii) such resale or transfer is in compliance with
Regulation S under the Securities Act as certified by such transferee (other than the Initial
Purchaser and its initial transferees) in a letter in the form of Exhibit B hereto; or (iii) after
the appropriate holding period, such resale or transfer is pursuant to an exemption from
registration under the Securities Act provided by Rule 144 under the Securities Act, in each case
in accordance with any applicable securities laws of any state of the United States. None of the
Issuer, the Servicer or the Indenture Trustee is obligated to register or qualify the Notes under
the Securities Act or any other securities law or to take any action not otherwise required under
this Indenture to permit the transfer of any Note without registration.

          (d) Global Notes Restrictions. In addition to the applicable provisions of this
Section 2.04 and the rules of the Depository, the exchange, transfer and registration of transfer
of Global Notes shall only be made in accordance with this Section 2.04(d).

     (i) Rule 144A Global Note to Temporary Regulation S Global Note During the Restricted
Period. If, during the Restricted Period, a Note Owner of an interest in a Rule 144A Global
Note wishes at any time to transfer its beneficial interest in such Rule 144A Global Note to a
Person who wishes to take delivery thereof in the form of a beneficial interest in a Temporary
Regulation S Global Note, such Note Owner may, in addition to complying with all applicable rules
and procedures of the Depository and Clearstream or Euroclear applicable to transfers by their
respective participants (the “Applicable Procedures”), transfer or cause the transfer of such
beneficial interest for an equivalent beneficial interest in the Temporary Regulation S Global Note
only upon compliance with the provisions of this Section 2.04(d)(i). Upon receipt by the Note
Registrar at its Corporate Trust Office of (A) written instructions given in accordance with the
Applicable Procedures from a Depository Participant directing the Note Registrar to credit or cause
to be credited to another specified Depository Participant’s account a beneficial interest in the
Temporary Regulation S Global Note in an amount equal to the Denomination of the beneficial
interest in the Rule 144A Global Note to be transferred, (B) a
written order given in accordance with the Applicable Procedures containing information
regarding the account of the Depository Participant (and the

9

 

Euroclear or Clearstream account, as the case may be) to be credited with, and the account of the
Depository Participant to be debited for, such beneficial interest, and (C) a certification in the
form of Exhibit C hereto given by the Note Owner that is transferring such interest, the Note
Registrar shall instruct the Depository, to reduce the denomination of the Rule 144A Global Note by
the denomination of the beneficial interest in the Rule 144A Global Note to be so transferred and,
concurrently with such reduction, to increase the denomination of the Temporary Regulation S Global
Note by the denomination of the beneficial interest in the Rule 144A Global Note to be so
transferred, and to credit or cause to be credited to the account of the Person specified in such
instructions (who shall be a Depository Participant acting for or on behalf of Euroclear or
Clearstream, or both, as the case may be) a beneficial interest in the Temporary Regulation S
Global Note having a denomination equal to the amount by which the denomination of the Rule 144A
Global Note was reduced upon such transfer.

     (ii) Rule 144A Global Note to Regulation S Global Note After the Restricted Period.
If, after the Restricted Period, a Note Owner of an interest in a Rule 144A Global Note wishes at
any time to transfer its beneficial interest in such Rule 144A Global Note to a Person who wishes
to take delivery thereof in the form of a beneficial interest in a Regulation S Global Note, such
holder may, in addition to complying with all Applicable Procedures, transfer or cause the transfer
of such beneficial interest for an equivalent beneficial interest in a Regulation S Global Note
only upon compliance with the provisions of this Section 2.04(d)(ii). Upon receipt by the Note
Registrar at its Corporate Trust Office of (A) written instructions given in accordance with the
Applicable Procedures from a Depository Participant directing the Note Registrar to credit or cause
to be credited to another specified Depository Participant’s account a beneficial interest in the
Regulation S Global Note in an amount equal to the Denomination of the beneficial interest in the
Rule 144A Global Note to be transferred, (B) a written order given in accordance with the
Applicable Procedures containing information regarding the account of the Depository Participant
(and, in the case of a transfer pursuant to and in accordance with Regulation S, the Euroclear or
Clearstream account, as the case may be) to be credited with, and the account of the Depository
Participant to be debited for, such beneficial interest, and (C) a certification in the form of
Exhibit D hereto given by the Note Owner that is transferring such interest, the Note Registrar
shall instruct the Depository, to reduce the denomination of the Rule 144A Global Note by the
aggregate denomination of the beneficial interest in the Rule 144A Global Note to be so transferred
and, concurrently with such reduction, to increase the denomination of the Regulation S Global Note
by the aggregate denomination of the beneficial interest in the Rule 144A Global Note to be so
transferred, and to credit or cause to be credited to the account of the Person specified in such
instructions (who shall be a Depository Participant acting for or on behalf of Euroclear or
Clearstream, or both, as the case may be) a beneficial interest in the Regulation S Global Note
having a denomination equal to the amount by which the denomination of the Rule 144A Global Note
was reduced upon such transfer.

     (iii) Regulation S Global Note to Rule 144A Global Note. If the Note Owner of an
interest in a Regulation S Global Note wishes at any time to transfer its beneficial interest in
such Regulation S Global Note to a Person who wishes to take delivery thereof in the form of a
beneficial interest in the Rule 144A Global Note, such holder may, in

10

 

addition to complying with all Applicable Procedures, transfer or cause the transfer of such
beneficial interest for an equivalent beneficial interest in the Rule 144A Global Note only upon
compliance with the provisions of this Section 2.04(d)(iii). Upon receipt by the Note Registrar at
its Corporate Trust Office of (A) written instructions given in accordance with the Applicable
Procedures from a Depository Participant directing the Note Registrar to credit or cause to be
credited to another specified Depository Participant’s account a beneficial interest in the Rule
144A Global Note in an amount equal to the Denomination of the beneficial interest in the
Regulation S Global Note to be transferred, (B) a written order given in accordance with the
Applicable Procedures containing information regarding the account of the Depository Participant to
be credited with, and the account of the Depository Participant (or, if such account is held for
Euroclear or Clearstream, the Euroclear or Clearstream account, as the case may be) to be debited
for such beneficial interest, and (C) with respect to a transfer of a beneficial interest in the
Regulation S Global Note for a beneficial interest in the related Rule 144A Global Note (x) during
the Restricted Period, a certification in the form of Exhibit E hereto given by the Note
Owner, or (y) after the Restricted Period, an Investment Representation Letter in the form of
Exhibit B hereto from the transferee to the effect that such transferee is a Qualified
Institutional Buyer, the Note Registrar shall instruct the Depository to reduce the denomination of
the Regulation S Global Note by the denomination of the beneficial interest in the Regulation S
Global Note to be transferred, and, concurrently with such reduction, to increase the denomination
of the Rule 144A Global Note by the aggregate denomination of the beneficial interest in the
Regulation S Global Note to be so transferred, and to credit or cause to be credited to the account
of the Person specified in such instructions (who shall be a Depository Participant acting for or
on behalf of Euroclear or Clearstream, or both, as the case may be) a beneficial interest in the
Rule 144A Global Note having a denomination equal to the amount by which the denomination of the
Regulation S Global Note was reduced upon such transfer.

     (iv) Transfers Within Regulation S Global Notes During Restricted Period. If, during
the Restricted Period, the Note Owner of an interest in a Regulation S Global Note wishes at any
time to transfer its beneficial interest in such Note to a Person who wishes to take delivery
thereof in the form of a Regulation S Global Note, such Note Owner may transfer or cause the
transfer of such beneficial interest for an equivalent beneficial interest in such Regulation S
Global Note only upon compliance with the provisions of this Section 2.04(d)(iv) and all Applicable
Procedures. Upon receipt by the Note Registrar at its Corporate Trust Office of (A) written
instructions given in accordance with the Applicable Procedures from a Depository Participant
directing the Note Registrar to credit or cause to be credited to another specified Depository
Participant’s account a beneficial interest in such Regulation S Global Note in an amount equal to
the denomination of the beneficial interest to be transferred, (B) a written order given in
accordance with the Applicable Procedures containing information regarding the account of the
Depository Participant to be credited with, and the account of the Depository Participant (or, if
such account is held for Euroclear or Clearstream, the Euroclear or Clearstream account, as the
case may be) to be debited for, such beneficial interest and (C) a certification in the form of
Exhibit F hereto given by the transferee, the Note Registrar shall instruct the Depository to
credit or cause to be credited to the account of the Person specified in such instructions (who
shall be a Depository Participant acting for

11

 

or on behalf of Euroclear or Clearstream, or both, as the case may be) a beneficial
interest in the Regulation S Global Note having a denomination equal to the amount
specified in such instructions by which the account to be debited was reduced upon such
transfer.

          (e) ERISA Considerations. No resale or other transfer of any Note may be made to any
purchaser or transferee unless (i) such purchaser or transferee is not, and will not acquire such
Note on behalf or with the assets of, any Benefit Plan or (ii) no “prohibited transaction” under
ERISA or Section 4975 of the Code or any substantially similar provision of federal, state or local
law that is not subject to a statutory, regulatory or administrative exemption will occur in
connection with such purchaser’s or such transferee’s acquisition or holding of such Note. In
addition, the Notes may not be purchased by or transferred to any Benefit Plan, or person acting on
behalf of or with assets of any Benefit Plan, unless it represents that it is not sponsored (within
the meaning of Section 3(16)(B) of ERISA) by the Issuer, DRC, the Seller, the Servicer, the
Indenture Trustee or the Initial Purchaser, or by any Affiliate of any such Person.

          (f) Transfer Fees, Charges and Taxes. No fee or service charge shall be imposed by the
Note Registrar for its services in respect of any registration of transfer or exchange referred to
in this Section 2.04. The Note Registrar may require payment by each transferor of a sum sufficient
to cover any tax, expense or other governmental charge payable in connection with any such
transfer.

          (g) No Obligation to Register. None of the Issuer, the Indenture Trustee, the
Servicer or the Note Registrar is obligated to register or qualify the Notes under the Securities
Act or any other securities law or to take any action not otherwise required under this Indenture
to permit the transfer of such Notes without registration or qualification. Any such Noteholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the Issuer, the
Indenture Trustee, the Servicer and the Note Registrar against any loss, liability or expense that
may result if the transfer is not so exempt or is not made in accordance with such federal and
state laws.

          (h) Rule 144A Information. The Servicer agrees to cause the Issuer and the Issuer
agrees to provide such information as required under Rule 144A under the Securities Act so as to
allow resales of Notes to Qualified Institutional Buyers in accordance herewith.

          Section 2.05 Mutilated, Destroyed, Lost and Stolen Notes.

          (a) If any mutilated Note is surrendered to the Indenture Trustee, the Issuer shall execute
and the Indenture Trustee shall authenticate and deliver in exchange therefor a replacement Note of
like tenor and principal amount and bearing a number not contemporaneously outstanding.

          (b) If there shall be delivered to the Issuer and the Indenture Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Note and (ii) such security or indemnity as
may be required by them to save each of them and any agent of either of them harmless then, in the
absence of actual notice to the Issuer or the Indenture Trustee that such Note has been acquired by
a bona fide purchaser, the Issuer shall execute and upon its request the Indenture Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen

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Note, a replacement Note of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

          (c) In case the final installment of principal on any such mutilated, destroyed, lost or
stolen Note has become or will at the next Payment Date become due and payable, the Issuer in its
discretion may, instead of issuing a replacement Note, pay such Note.

          (d) Upon the issuance of any replacement Note under this Section 2.05, the Issuer or the
Indenture Trustee may require the payment by the Noteholder of a sum sufficient to cover any tax or
other governmental charge that may be imposed as a result of the issuance of such replacement Note.

          (e) Every replacement Note issued pursuant to this Section 2.05 in lieu of any destroyed, lost
or stolen Note shall constitute an original additional contractual obligation of the Issuer,
whether or not the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and proportionately with any and
all other Notes duly issued hereunder.

          (f) The provisions of this Section 2.05 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes.

          Section 2.06 Payment of Interest and Principal; Rights Preserved.

          (a) Any installment of interest or principal, payable on any Note that is punctually paid or
duly provided for by or on behalf of the Issuer on the applicable Payment Date shall be
paid to the Person in whose name such Note was registered at the close of business on the Record
Date for such Payment Date by check mailed to the address specified in the Note Register, or upon
the request of a Holder of more than $1,000,000 original principal amount of Notes, by wire
transfer of federal funds to the account and number specified in the Note Register, in each case on
such Record Date for such Person (which shall be, as to each original purchaser of the Notes, the
account and number specified by such purchaser to the Indenture Trustee in writing, or, if no such
account or number is so specified, then by check mailed to such Person’s address as it appears in
the Note Register on such Record Date).

          (b) All reductions in the principal amount of a Note effected by payments of installments of
principal made on any Payment Date shall be binding upon all Holders of such Note and of any Note
issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof,
whether or not such payment is noted on such Note. All payments on the Notes shall be paid without
any requirement of presentment, except that each Holder of any Note shall be deemed to agree, by
its acceptance of the same, to surrender such Note at the Corporate Trust Office prior to receipt
of payment of the final installment of principal of such Note.

          Section 2.07 Persons Deemed Owners.

          Prior to due presentment of a Note for registration of transfer, the Issuer, the Indenture
Trustee, and any agent of the Issuer or the Indenture Trustee may treat the registered Noteholder
as the owner of such Note for the purpose of receiving payment of principal of and

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interest on such Note and for all other purposes whatsoever, whether or not such Note be overdue,
and neither the Issuer, the Indenture Trustee, nor any agent of the Issuer or the Indenture Trustee
shall be affected by notice to the contrary.

          Section 2.08 Cancellation.

          All Notes surrendered for registration of transfer or exchange or following final payment
shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture
Trustee and shall be promptly canceled by it. The Issuer may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered hereunder which the
Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly
canceled by the Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes canceled as provided in this Section 2.08, except as expressly permitted by this
Indenture. All canceled Notes held by the Indenture Trustee may be disposed of in the normal course
of its business or as directed by an Issuer Order.

          Section 2.09 Noteholder Lists.

          The Indenture 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 Noteholders. In the event the
Indenture Trustee no longer serves as the Note Registrar, the Issuer shall furnish to the Indenture
Trustee at least five Business Days before each Payment Date (and in all events in intervals of not
more than six months) and at such other times as the Indenture Trustee may request in writing a
list in such form and as of such date as the Indenture Trustee may reasonably require of the names
and addresses of Noteholders. For so long as Wells Fargo Bank, National Association is acting in
the capacity of Indenture Trustee, it shall also be the Note Registrar hereunder.

          Section 2.10 Treasury Notes.

          In determining whether the Noteholders of the required Outstanding Note Balance have concurred
in any direction, waiver or consent, Notes held or redeemed by the Issuer or held by an Affiliate
of the Issuer shall be considered as though not Outstanding, except that for the purposes of
determining whether the Indenture Trustee shall be protected in relying on any such direction,
waiver or consent, only Notes which a Responsible Officer of the Indenture Trustee knows are so
owned shall be so disregarded.

          Section 2.11 Notice to Depository.

          Whenever notice or other communication to the Holders of Global Notes is required under this
Indenture, unless and until Definitive Notes have been issued to the related Note Owners pursuant
to Section 2.03 hereof, the Indenture Trustee shall give all such notices and communications
specified herein to be given to such Note Owners to the Depository.

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ARTICLE III

ACCOUNTS; COLLECTION AND

APPLICATION OF MONEYS; REPORTS

          Section 3.01 Trust Accounts; Investments by Indenture Trustee.

          (a) On or before the Closing Date, the Indenture Trustee shall establish in the name of the
Indenture Trustee for the benefit of the Noteholders as provided in this Indenture, the Trust
Accounts, which accounts shall be Eligible Bank Accounts maintained at the Corporate Trust Office.
From time to time, the Indenture Trustee shall establish, to the extent required under this
Indenture, accounts in the name of the Indenture Trustee for the benefit of the Noteholders, which
accounts shall be Eligible Bank Accounts.

          Subject to the further provisions of this Section 3.01(a), the Indenture Trustee shall, upon
receipt or upon transfer from another account, as the case may be, deposit into such Trust Accounts
all amounts received by it which are required to be deposited therein in accordance with the
provisions of this Indenture. All such amounts and all investments made with such amounts,
including all income and other gain from such investments, shall be held by the Indenture Trustee
in such accounts as part of the Trust Estate as herein provided, subject to withdrawal by the
Indenture Trustee in accordance with, and for the purposes specified in the provisions of, this
Indenture.

          (b) The Indenture Trustee shall assume that any amount remitted to it in respect of the Trust
Estate is to be deposited into the Collection Account pursuant to Section 3.02(a) hereof.

          (c) None of the parties hereto shall have any right of set-off with respect to any Trust
Account, or any investment therein.

          (d) So long as no Event of Default shall have occurred and be continuing, all or a portion of
the amounts in any Trust Account shall be invested and reinvested by the Indenture Trustee pursuant
to an Issuer Order in one or more Eligible Investments. Subject to the restrictions on the
maturity of investments set forth in Section 3.01(f) hereof, each such Issuer Order may authorize
the Indenture Trustee to make the specific Eligible Investments set forth therein, to make Eligible
Investments from time to time consistent with the general instructions set forth therein, or to
make specific Eligible Investments pursuant to instructions received in writing or by telegraph or
facsimile transmission from the employees or agents of the Issuer, as the case may be, identified
therein, in each case in such amounts as such Issuer Order shall specify.

          (e) In the event that either (i) the Issuer shall have failed to give investment directions to
the Indenture Trustee by 9:30 A.M., New York City time on any Business Day on which there may be
uninvested cash or (ii) an Event of Default shall be continuing, the Indenture Trustee shall
promptly invest and reinvest the funds then in the designated Trust Account to the fullest extent
practicable in those obligations or securities described in clause 5 of the definition

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of “Eligible Investments”. All investments made by the Indenture Trustee shall mature no later than
the maturity date therefor permitted by Section 3.01(f) hereof.

          (f) No investment of any amount held in any Trust Account shall mature later than the Business
Day immediately preceding the Payment Date which is scheduled to occur immediately following the
date of investment. All income or other gains (net of losses) from the investment of moneys
deposited in any Trust Account shall be deposited by the Indenture Trustee in such account
immediately upon receipt.

          (g) Any investment of any funds in any Trust Account and any sale of any investment held in
such accounts, shall be made under the following terms and conditions:

     (i) each such investment shall be made in the name of the Indenture Trustee, in each
case in such manner as shall be necessary to maintain the identity of such investments as
assets of the Trust Estate;

     (ii) any certificate or other instrument evidencing such investment shall be delivered
directly to the Indenture Trustee and the Indenture Trustee shall have sole possession of
such instrument, and all income on such investment;

     (iii) the proceeds of any sale of an investment shall be remitted by the purchaser
thereof directly to the Indenture Trustee for deposit in the account in which such
investment was held; provided that no such sale may occur on any day other than the
Business Day immediately preceding a Payment Date (for the avoidance of doubt, any full or
partial liquidation of an investment in a money market fund is not subject to the foregoing
date restriction); and

     (iv) neither the Issuer nor any of its Affiliates may exercise any voting rights with
respect to an investment.

          (h) If any amounts are needed for disbursement from any Trust Account and sufficient
uninvested funds are not collected and available therein to make such disbursement, in the absence
of an Issuer Order for the liquidation of investments held therein in an amount sufficient to
provide the required funds, the Indenture Trustee shall select and cause to be sold or otherwise
converted to cash a sufficient amount of the investments in such account.

          (i) The Indenture Trustee shall not in any way be held liable by reason of any insufficiency
in any Trust Account resulting from losses on investments made in accordance with the provisions of
this Section 3.01 including, but not limited to, losses resulting from the sale or depreciation in
the market value of such investments (but the institution serving as Indenture Trustee shall at all
times remain liable for its own obligations, if any, constituting part of such investments). The
Indenture Trustee shall not be liable for any investment made by it in accordance with this Section
3.01 on the grounds that it could have made a more favorable investment or a more favorable
selection for sale of an investment.

          (j) Each party hereto agrees that each of the Trust Accounts constitutes a “securities
account” within the meaning of Article 8 of the UCC and in such capacity Wells Fargo Bank, National
Association shall be acting as a “securities intermediary” within the

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meaning of 8-102 of the UCC and that, regardless of any provision in any other agreement, for
purposes of the UCC, the State of New York shall be deemed to be the “securities intermediary’s
jurisdiction” under Section 8-110 of the UCC. The Indenture Trustee shall be the “entitlement
holder” within the meaning of Section 8-102(a)(7) of the UCC with respect to the Trust Accounts. In
furtherance of the foregoing, Wells Fargo Bank, National Association, acting as a “securities
intermediary,” shall comply with “entitlement orders” within the meaning of Section 8-102(a)(8) of
the UCC originated by the Indenture Trustee with respect to the Trust Accounts, without further
consent by the Issuer. Each item of property (whether investment property, financial asset,
security, instrument or cash) credited to each Trust Account shall be treated as a “financial
asset” within the meaning of Section 8-102(a)(9) of the UCC. All securities or other property
underlying any financial assets credited to each Trust Account shall be registered in the name of
the Indenture Trustee or indorsed to the Indenture Trustee or in blank and in no case will any
financial asset credited to any Trust Account be registered in the name of the Issuer, payable to
the order of the Issuer or specially indorsed to the Issuer. The Trust Accounts shall be under the
sole dominion and control (as defined in Section 8-106 of the UCC) of the Indenture Trustee and the
Issuer shall have no right to close, make withdrawals from, or give disbursement directions with
respect to, or receive distributions from, the Collection Account except in accordance with Section
3.04 hereof.

          (k) In the event that Wells Fargo Bank, National Association, as securities intermediary, has
or subsequently obtains by agreement, by operation of law or otherwise a security interest in the
Trust Accounts or any security entitlement credited thereto, it hereby agrees that such security
interest shall be subordinate to the security interest created by this Indenture and that the
Indenture Trustee’s rights to the funds on deposit therein shall be subject to Section 3.04 hereof.
The financial assets credited to, and other items deposited to the Trust Accounts will not be
subject to deduction, set-off, banker’s lien, or any other right in favor of any person other than
as created pursuant to this Indenture.

          Section 3.02 Establishment and Administration of the Trust Accounts.

          (a) Collection Account. The Indenture Trustee shall cause to be established and
maintained an account (the “Collection Account”) for the benefit of the Noteholders. The
Collection Account shall be an Eligible Bank Account initially established at the Corporate Trust
Office of the Indenture Trustee, bearing the following designation “Diamond Resorts Owner Trust
2009-1 — Collection Account, Wells Fargo Bank, National Association, as Indenture Trustee for the
benefit of the Noteholders”. The Indenture Trustee on behalf of the Noteholders shall possess all
right, title and interest in all funds on deposit from time to time in the Collection Account and
in all proceeds thereof. The Collection Account shall be under the sole dominion and control of the
Indenture Trustee for the benefit of the Noteholders as their interests appear in the Trust Estate.
If, at any time, the Collection Account ceases to be an Eligible Bank Account, the Indenture
Trustee shall within two Business Days establish a new Collection Account which shall be an
Eligible Bank Account, transfer any cash and/or any investments to such new Collection Account and
from the date such new Collection Account is established, it shall be the “Collection Account”.
The Indenture Trustee agrees to immediately deposit any amounts received by it into the Collection
Account. Amounts on deposit in the Collection Account shall be invested in accordance with Section
3.01 hereof. Withdrawals and payments from the Collection Account will be made on each Payment
Date as provided in Section 3.04 hereof. All

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investment earnings on the Collection Account shall be distributed to the owners of the beneficial
interests in the Issuer on each Payment Date.

          (b) Reserve Account. The Indenture Trustee shall cause to be established and
maintained an account (the “Reserve Account”) for the benefit of the Noteholders. On the Closing
Date, the Issuer shall cause to be deposited in the Reserve Account an amount equal to the Reserve
Account Initial Deposit from the proceeds of the sale of the Notes. The Reserve Account shall be an
Eligible Bank Account initially established at the Corporate Trust Office of the Indenture Trustee,
bearing the following designation “Diamond Resorts Owner Trust 2009-1
— Reserve Account, Wells Fargo Bank, National Association, as Indenture Trustee for the benefit of
the Noteholders”. The Indenture Trustee on behalf of the Noteholders shall possess all right, title
and interest in all funds on deposit from time to time in the Reserve Account and in all proceeds
thereof. The Reserve Account shall be under the sole dominion and control of the Indenture Trustee
for the benefit of the Noteholders as their interests appear in the Trust Estate. If, at any time,
the Reserve Account ceases to be an Eligible Bank Account, the Indenture Trustee shall within two
Business Days establish a new Reserve Account which shall be an Eligible Bank Account, transfer any
cash and/or any investments to such new Reserve Account and from the date such new Reserve Account
is established, it shall be the “Reserve Account.” Amounts on deposit in the Reserve Account shall
be invested in accordance with Section 3.01 hereof. Deposits to the Reserve Account shall be made
in accordance with Section 3.04 hereof. Withdrawals and payments from the Reserve Account shall be
made in the following manner:

     (i) Withdrawals. If, on any Determination Date, the amounts on deposit in the
Collection Account (after giving effect to all deposits thereto required hereunder) are
insufficient to pay amounts required pursuant to pay the items required under Section
3.04(i) through (ix) hereof for the related Payment Date, on such Payment Date, the
Indenture Trustee shall, based on the Monthly Servicer Report and to the extent of funds
available in the Reserve Account, withdraw from the Reserve Account and deposit into the
Collection Account an amount equal to the lesser of such insufficiency and the amount on
deposit in such Reserve Account; provided that on any Payment Date prior to the Stated
Maturity, the amount withdrawn by the Indenture Trustee shall not cause the amount on
deposit in the Reserve Account to be less than the Reserve Account Floor Amount unless
available funds in the Collection Account are insufficient to pay all amounts required to
be distributed on such Payment Date pursuant to clauses (i) through (vii), inclusive, of
Section 3.04 hereof (the amount withdrawn, the “Reserve Account Draw Amount”).

     (ii) Stated Maturity or Payment in Full. On the earlier to occur of the Stated
Maturity and the Payment Date on which the Aggregate Outstanding Note Balance is reduced to
zero, the Indenture Trustee shall withdraw all amounts on deposit in the Reserve Account
and shall deposit such amounts to the Collection Account.

     (iii) Event of Default. Upon the occurrence of an Event of Default and an
acceleration of the Notes as provided herein, the Indenture Trustee shall withdraw all
amounts on deposit in the Reserve Account and shall deposit such amounts to the Collection
Account for distribution in accordance with Section 6.06 hereof.

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     (iv) Amounts in Excess of Reserve Account Required Balance. If, on any
Payment Date, amounts on deposit in the Reserve Account are greater than the Reserve
Account Required Balance, the Indenture Trustee shall, based on the Monthly Servicer
Report, withdraw funds in excess of the Reserve Account Required Balance from the Reserve
Account and deposit such funds into the Collection Account as Available Funds on such
Payment Date for application in accordance with Section 3.04 hereof.

          Section 3.03 [Reserved].

          Section 3.04 Distributions.

          To the extent of Available Funds on deposit in the Collection Account, on each Payment Date,
the Indenture Trustee shall, based on the Monthly Servicer Report, make the following disbursements
and distributions to the following parties, in the following order of priority:

	 	(i)	 	to the Indenture Trustee and the Custodian, ratably based on their respective
entitlements, the Indenture Trustee Fee and the Custodial Fee, respectively, plus
any accrued and unpaid Indenture Trustee Fees and the Custodial Fees with respect
to prior Payment Dates, and Indenture Trustee Expenses and Custodial Expenses
incurred and charged, respectively, by the Indenture Trustee and the Custodian
during the related Due Period;
	 
	 	(ii)	 	to the Back-Up Servicer, the Back-Up Servicing Fee, plus any accrued and
unpaid Back-Up Servicing Fees with respect to prior Payment Dates and any
Transition Expenses incurred during the related Due Period (up to an aggregate
cumulative total of $100,000);
	 
	 	(iii)	 	on the Payment Date occurring in October of each year only, to the Owner
Trustee, the Owner Trustee Fee, and on each Payment Date, the Owner Trustee
Expenses incurred and charged by the Owner Trustee during the related Due Period;
	 
	 	(iv)	 	on the Payment Date occurring in January of each year only, to the
Administrator, the Administrator Fee, and on each Payment Date, the Administrator
Expenses incurred and charged by the Administrator during the related Due Period;
	 
	 	(v)	 	to the Servicer, the Servicing Fee, plus any accrued and unpaid Servicing Fees
with respect to prior Payment Dates;
	 
	 	(vi)	 	to the Class A Noteholders, the Class A Interest Distribution Amount;
	 
	 	(vii)	 	to the Class B Noteholders, the Class B Interest Distribution Amount;
	 
	 	(viii)	 	to the Class A Noteholders, the Class A Principal Distribution Amount;

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	 	(ix)	 	to the Class B Noteholders, the Class B Principal Distribution Amount;
	 
	 	(x)	 	to the Reserve Account, all remaining amounts until the amounts on deposit in
the Reserve Account shall equal the Reserve Account Required Balance;
	 
	 	(xi)	 	to the Class A Noteholders and the Class B Noteholders, in that order,
reimbursement of any unreimbursed Note Balance Write-Down Amounts applied to such
Class on prior Payment Dates plus interest at the related Note Rate on such
unreimbursed Note Balance Write-Down Amounts;
	 
	 	(xii)	 	to the Back-Up Servicer, any expenses not paid pursuant to clause (ii) above;
and
	 
	 	(xiii)	 	to the Owner or any subsequent owners of the beneficial interests of the
Issuer, any remaining amounts.

          Section 3.05 Reports to Noteholders.

          On each Payment Date the Indenture Trustee shall account to the Initial Purchaser, each
Noteholder and to the Rating Agency (i) the portion of payments then being made which represents
principal and the amount which represents interest, and shall contemporaneously advise the Issuer
of all such payments, and (ii) the amounts on deposit in each Trust Account and identifying the
investments included therein. The Indenture Trustee may satisfy its obligations under this Section
3.05 by making available electronically the Monthly Servicer Report to the Initial Purchaser, the
Noteholders, the Rating Agency and the Issuer; provided, however, the Indenture
Trustee shall have no obligation to provide such information described in this Section 3.05 until
it has received the requisite information from the Issuer or the Servicer. On or before the 5th day
prior to the final Payment Date with respect to any Class of Notes, the Indenture Trustee shall
send notice of such Payment Date to the Rating Agency, the Initial Purchaser and the Noteholders of
such Class. Such notice shall include a statement that if such Notes are paid in full on the final
Payment Date, interest shall cease to accrue as of the day immediately preceding such final Payment
Date.

          The Indenture Trustee may make available to the Noteholders and the Rating Agency, via the
Indenture Trustee’s Internet Website, the Monthly Servicer Report available each month and, with
the consent or at the direction of the Issuer, such other information regarding the Notes and/or
the Timeshare Loans as the Indenture Trustee may have in its possession, but only with the use of a
password provided by the Indenture Trustee. The Indenture Trustee will make no representation or
warranties as to the accuracy or completeness of such documents and will assume no responsibility
therefor.

          The Indenture Trustee’s Internet Website shall be initially located at “www.CTSLink.com” or at
such other address as shall be specified by the Indenture Trustee from time to time in writing to
the Issuer, the Servicer, the Noteholders and the Rating Agency. In connection with providing
access to the Indenture Trustee’s Internet Website, the Indenture

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Trustee may require registration and the acceptance of a disclaimer. The Indenture Trustee shall
not be liable for the dissemination of information in accordance with this Indenture.

          The Indenture Trustee shall have the right to change the way Monthly Servicer Reports are
distributed in order to make such distribution more convenient and/or more accessible to the above
parties and the Indenture Trustee shall provide timely and adequate notification to all above
parties regarding any such changes.

          Annually (and more often if required by applicable law), the Indenture Trustee shall
distribute to Noteholders any Form 1099 or similar information returns required by applicable tax
law to be distributed to the Noteholders. The Servicer shall prepare or cause to be prepared all
such information for distribution by the Indenture Trustee to the Noteholders.

          Section 3.06 Note Balance Write-Down Amounts. The Note Balance Write-Down Amount, if
any, on each Payment Date shall be applied first to the Class B Notes until the Outstanding Note
Balance thereof is reduced to zero and second to the Class A Notes until the Outstanding Note
Balance thereof is reduced to zero. The application of any Note Balance Write-Down Amount shall
not affect the right of each Noteholder to receive all payments of principal and interest to be
made with respect to the Notes.

          Section 3.07 Withholding Taxes. The Indenture Trustee, on behalf of the Issuer, shall
comply with all requirements of the Code and applicable Treasury Regulations and applicable state
and local law with respect to the withholding from any distributions made by it to any Noteholder
of any applicable withholding taxes imposed thereon and with respect to any applicable reporting
requirements in connection therewith.

ARTICLE IV

THE TRUST ESTATE

          Section 4.01 Acceptance by Indenture Trustee.

          (a) Concurrently with the execution and delivery of this Indenture, the Indenture Trustee does
hereby acknowledge and accept the conveyance by the Issuer of the assets constituting the Trust
Estate. The Indenture Trustee shall hold the Trust Estate in trust for the benefit of the
Noteholders, subject to the terms and provisions hereof. In connection with the conveyance of the
Trust Estate to the Indenture Trustee, the Issuer has delivered or has caused the Seller to deliver
(i) to the Custodian, the Timeshare Loan Files, and (ii) to the Servicer, the Timeshare Loan
Servicing Files for each Timeshare Loan conveyed on the Closing Date. On or prior to each
Substitution Date, the Issuer will deliver or cause the Seller to deliver (i) to the Custodian, the
Timeshare Loan Files, and (ii) to the Servicer, the Timeshare Loan Servicing Files, for each
Qualified Substitute Timeshare Loan to be conveyed on such Substitution Date.

          (b) The Indenture Trustee shall perform its duties under this Section 4.01 and hereunder on
behalf of the Trust Estate and for the benefit of the Noteholders in accordance with the terms of
this Indenture and applicable law and, in each case, taking into account its other obligations
hereunder, but without regard to:

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     (i) any relationship that the Indenture Trustee or any Affiliate of the Indenture
Trustee may have with an Obligor;

     (ii) the ownership of any Note by the Indenture Trustee or any Affiliate of the
Indenture Trustee;

     (iii) the Indenture Trustee’s right to receive compensation for its services hereunder
or with respect to any particular transaction; or

     (iv) the ownership, or holding in trust for others, by the Indenture Trustee of any
other assets or property.

          Section 4.02 Grant of Security Interest; Tax Treatment.

          (a) The provisions of this Indenture shall be construed in furtherance of the Intended Tax
Characterization. The conveyance by the Issuer of the Timeshare Loans to the Indenture Trustee
shall not constitute and are not intended to result in an assumption by the Indenture Trustee or
any Noteholder of any obligation of the Issuer or the Servicer to the obligors, the insurers under
any insurance policies, or any other Person in connection with the Timeshare Loans.

          (b) It is the intention of the parties hereto that, with respect to all taxes, the Notes will
be treated as indebtedness of the Issuer to the Noteholders secured by the Timeshare Loans (the
“Intended Tax Characterization”). The Issuer, the Servicer and the Indenture Trustee, by entering
into this Indenture, and each Noteholder by the purchase of a Note, agree to report such
transactions for purposes of all taxes in a manner consistent with the Intended Tax
Characterization, unless otherwise required by applicable law. If the Notes are not properly
treated as indebtedness with respect to all taxes, then the parties intend (as provided in the
Trust Agreement) that they shall constitute interests in a partnership for such purposes and, in
that regard, agree that no election to treat the Issuer in any part as a corporation under Treasury
Regulation section 301.7701-3 shall be made by any Person.

          (c) The Issuer and the Servicer shall take no action inconsistent with the Indenture Trustee’s
interest in the Timeshare Loans and shall indicate or shall cause to be indicated in its books and
records held on its behalf that each Timeshare Loan constituting the Trust Estate has been assigned
to the Indenture Trustee on behalf of the Noteholders.

          Section 4.03 Further Action Evidencing Assignments.

          (a) The Issuer and the Servicer each agrees that, from time to time, at its respective
expense, it will promptly execute and deliver all further instruments and documents, and take all
further action, that may be necessary or appropriate, or that the Servicer or the Indenture Trustee
or the Holders representing at least 66-2/3% of the then Outstanding Note Balance of each Class of
Notes may reasonably request, in order to perfect, protect or more fully evidence the security
interest in the Timeshare Loans or to enable the Indenture Trustee to exercise or enforce any of
its rights hereunder. Without limiting the generality of the foregoing, the Issuer will, without
the necessity of a request and upon the request of the Servicer or the Indenture Trustee, execute
and file or record (or cause to be executed and filed or recorded) such

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Assignments of Mortgage, financing or continuation statements, or amendments thereto or assignments
thereof, and such other instruments or notices, as may be necessary or appropriate to create and
maintain in the Indenture Trustee a first priority perfected security interest, at all times, in
the Trust Estate, including, without limitation, recording and filing UCC-1 financing statements,
amendments or continuation statements prior to the effective date of any change of the name,
identity or structure or relocation of its chief executive office or its jurisdiction of formation
or any change that would or could affect the perfection pursuant to any financing statement or
continuation statement or assignment previously filed or make any UCC-1 or continuation statement
previously filed pursuant to this Indenture seriously misleading within the meaning of applicable
provisions of the UCC (and the Issuer shall give the Indenture Trustee at least 30 Business Days
prior notice of the expected occurrence of any such circumstance). The Issuer shall deliver
promptly to the Indenture Trustee file-stamped copies of any such filing.

          (b) (i) The Issuer hereby grants to each of the Servicer and the Indenture Trustee a power of
attorney to execute, file and record all documents including, but not limited to Assignments of
Mortgage, UCC financing statements, amendments or continuation statements, on behalf of the Issuer
as may be necessary or desirable to effectuate the foregoing and any recordation pursuant to
Section 5.18 hereof and (ii) the Servicer hereby grants to the Indenture Trustee a power of
attorney to execute, file and record all documents on behalf of the Servicer as may be necessary or
desirable to effectuate the foregoing; provided, however, that such grant shall not
create a duty on the part of the Indenture Trustee or the Servicer to file, prepare, record or
monitor, or any responsibility for the contents or adequacy of, any such documents.

          Section 4.04 Substitution and Repurchase of Timeshare Loans.

          (a) Mandatory Substitution and Repurchase of Timeshare Loans for Breach of Representation
or Warranty. If at any time, any party hereto obtains knowledge, discovers, or is notified by
any other party hereto, that any of the representations and warranties of the Seller in the Sale
Agreement were incorrect at the time such representations and warranties were made, then the party
discovering such defect, omission, or circumstance shall promptly notify the other parties to this
Indenture and the Seller. In the event any such representation or warranty of the Seller is
incorrect and materially and adversely affects the value of a Timeshare Loan or the interests of
the Noteholders therein, then the Issuer and the Indenture Trustee shall require the Seller, within
60 days after the date it is first notified of, or otherwise discovers such breach, to eliminate or
otherwise cure in all material respects the circumstance or condition which has caused such
representation or warranty to be incorrect or if the breach relates to a particular Timeshare Loan
and is not cured in all material respects (such Timeshare Loan, a “Defective Timeshare Loan”),
either (a) purchase the Issuer’s interest in such Defective Timeshare Loan at the Repurchase Price
or (b) provide one or more Qualified Substitute Timeshare Loans and pay the Substitution Shortfall
Amounts, if any. The Indenture Trustee is hereby appointed attorney-in-fact, which appointment is
coupled with an interest and is therefore irrevocable, to act on behalf and in the name of the
Issuer to enforce the Seller’s repurchase or substitution obligations if the Seller has not
complied with its repurchase or substitution obligations under the Sale Agreement within 30 days of
the end of the aforementioned 60 day period.

          (b) Optional Repurchase and Substitution of Timeshare Loans. On any date, pursuant to
the Sale Agreement, the Seller shall have the option, but not the obligation, to either

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(i) repurchase a Defaulted Timeshare Loan from the Issuer for a price equal to the Repurchase Price
therefor, or (ii) substitute one or more Qualified Substitute Timeshare Loans for a Defaulted
Timeshare Loan and pay the related Substitution Shortfall Amount, if any; provided,
however, the aggregate Cut-Off Date Loan Balance of Defaulted Timeshare Loans that may be
repurchased or substituted pursuant to this Section 4.04(b) shall be limited on any date to 15% and
20%, respectively, of the Aggregate Loan Balance on the Initial Cut-Off Date less the sum of the
Loan Balances of all Defaulted Timeshare Loans (as of the date they became Defaulted Timeshare
Loans) previously repurchased or substituted, as applicable, pursuant this Section 4.04(b).

          (c) Repurchase Prices and Substitution Shortfall Amounts. The Issuer and the
Indenture Trustee shall direct that the Seller remit all amounts in respect of Repurchase Prices
and Substitution Shortfall Amounts to the Indenture Trustee for deposit in the Collection Account.
In the event that more than one Timeshare Loan is substituted pursuant to Section 4.04(a) or
Section 4.04(b) hereof on any Substitution Date, the Substitution Shortfall Amounts and the Loan
Balances of Qualified Substitute Timeshare Loans shall be calculated on an aggregate basis for all
substitutions made on such Substitution Date.

          (d) Schedule of Timeshare Loans. The Issuer shall cause the Seller to provide the
Indenture Trustee on any date on which a Timeshare Loan is repurchased or substituted, with a
revised Schedule of Timeshare Loans to the Sale Agreement reflecting the removal of Timeshare Loans
and subjecting any Qualified Substitute Timeshare Loans to the provisions thereof.

          (e) Officer’s Certificate. No substitution of a Timeshare Loan shall be effective
unless the Issuer and the Indenture Trustee shall have received an Officer’s Certificate from the
Seller indicating that (i) the new Timeshare Loan meets all the criteria of the definition of
“Qualified Substitute Timeshare Loan”, (ii) the Timeshare Loan Files for such Qualified Substitute
Timeshare Loan have been delivered to the Custodian, and (iii) the Timeshare Loan Servicing Files
for such Qualified Substitute Timeshare Loan have been delivered to the Servicer.

          (f) Qualified Substitute Timeshare Loans. On or prior to the related Substitution
Date, the Issuer shall direct the Seller to deliver or cause the delivery of the Timeshare Loan
Files of the related Qualified Substitute Timeshare Loans to the Custodian on or prior to the
related Substitution Date in accordance with the provisions of this Indenture and the Custodial
Agreement.

          Section 4.05 Release of Lien.

          (a) The Issuer shall be entitled to obtain a release from the Lien of this Indenture for any
Timeshare Loan repurchased or substituted pursuant to Section 4.04 hereof, (i) in the case of any
repurchase, after a payment by the Seller of the Repurchase Price of the Timeshare Loan, or (ii) in
the case of any substitution, after payment of any applicable Substitution Shortfall Amount and the
delivery of the Timeshare Loan Files for the related Qualified Substitute Timeshare Loan to the
Custodian.

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          (b) The Issuer shall be entitled to obtain a release from the Lien of the Indenture for any
Timeshare Loan which has been paid in full.

          (c) In connection with (a) and (b) above, the Indenture Trustee will execute and deliver such
endorsements and assignments as are provided to it by the Seller, in each case without recourse,
representation or warranty, as shall be necessary to vest in the Seller, the legal and beneficial
ownership of each repurchased or substituted Timeshare Loan being released pursuant to this Section
4.05. The Servicer shall direct the Custodian to release the related Timeshare Loan Files upon
receipt of a Request for Release from the Servicer, as provided for in the Custodial Agreement.

          Section 4.06 Appointment of Custodian.

          The Indenture Trustee may appoint a Custodian to hold all of the Timeshare Loan Files as agent
for the Indenture Trustee. Each Custodian shall be a depository institution supervised and
regulated by a federal or state banking authority, shall have combined capital and surplus of at
least $10,000,000, shall be qualified to do business in the jurisdiction in which it holds any
Timeshare Loan File and shall not be the Issuer or an Affiliate of the Issuer. The initial
Custodian shall be Wells Fargo Bank, National Association pursuant to the terms of the Custodial
Agreement. The Indenture Trustee shall not be responsible for paying the Custodial Fee or any other
amounts owed to the Custodian.

          Section 4.07 Sale of Timeshare Loans.

          The parties hereto agree that none of the Timeshare Loans in the Trust Estate may be sold or
disposed of in any manner except as expressly provided for herein.

ARTICLE V

SERVICING OF TIMESHARE LOANS

          Section 5.01 Appointment of Servicer; Servicing Standard.

          Subject to the terms and conditions herein, the Issuer hereby appoints DRFS as the initial
Servicer hereunder. The Servicer shall service and administer the Timeshare Loans and perform all
of its duties hereunder in accordance with applicable law, the Credit and Collection Policy, the
terms of the respective Timeshare Loans and, to the extent consistent with the foregoing, in
accordance with the customary and usual procedures employed by institutions servicing timeshare
loans secured by timeshare estates, or if a higher standard, the highest degree of skill and
attention that the Servicer exercises with respect to comparable assets that the Servicer services
for itself or its Affiliates (the “Servicing Standard”).

          Section 5.02 Payments on the Timeshare Loans.

          (a) The Servicer shall in a manner consistent with the Credit and Collection Policy attached
hereto as Exhibit I, direct or otherwise cause the Obligors as to all Timeshare Loans
(other than Obligors paying by means of credit cards) to mail or deposit by electronic means all
Receivables and other payments due thereunder, or to make or credit such payments

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pursuant to automated clearing house debit and credit payments or credit card processing payment,
remittance and collection agreements, directly to the Servicer’s existing centralized lockbox
account (the “Centralized Lockbox Account”), which Centralized Lockbox Account shall consist of one
or more accounts maintained by the Servicer at an Approved Financial Institution (each, a “Lockbox
Bank”), acting with the consent or at the direction of the Indenture Trustee to a Lockbox Bank
maintained by the Indenture Trustee for the benefit of the Noteholders. At all times, the
Centralized Lockbox Account shall be subject to the Deposit Account Control Agreement and the
Intercreditor Agreement. The Centralized Lockbox Account shall initially be maintained at Wachovia
Bank, N.A.

          (b) Within one Business Day after receipt of any Receivables or other payments due under the
Timeshare Loans in the Centralized Lockbox Account, the Servicer shall determine and segregate such
Receivables and other payments from any monies or other items in the Centralized Lockbox Account
that do not relate to Receivables or other payments made on the Timeshare Loans, and within one
Business Day thereafter the Servicer shall remit such Receivables and other payments to the
Collection Account. The Servicer is not required to remit any Miscellaneous Payments or Processing
Charges, to the extent received, to the Collection Account.

          (c) If, notwithstanding such instructions as provided in Section 5.02(a) hereof, any such
Receivables or other payments are delivered to the Seller, the Servicer or to any Affiliate
thereof, the Servicer shall (or, as applicable, shall cause the Seller or such Affiliate to)
deposit such Receivables or other payments into the Collection Account within two Business Days
following the receipt.

          (d) All interest earned on funds received with respect to Timeshare Loans and any Processing
Charges deposited in accounts of the Servicer or in the Centralized Lockbox Account prior to
deposit to the Collection Account pursuant to Section 5.02(b) hereof shall be deemed to be
additional compensation to the Servicer for the performance of its duties and obligations
hereunder.

          (e) On the Closing Date and each Substitution Date, the Servicer shall deposit to the
Collection Account all Receivables and other payments collected and received in respect of the
Timeshare Loans (other than the amounts described in Section 5.02(d) hereof) after the related
Cut-Off Date.

          (f) Subject to Sections 5.02(b), (c), (d) and (g) hereof, within two Business Days of receipt,
the Servicer shall segregate all Receivables and other payments in respect of the Timeshare Loans
and shall remit such amounts to the Collection Account. In the event that Miscellaneous Payments
or Processing Charges are erroneously deposited in the Collection Account, the Indenture Trustee
shall pay such funds to the Servicer prior to any distributions under Section 3.04 hereof on the
next Payment Date as instructed by the Servicer.

          (g) The Servicer shall net out Liquidation Expenses from any Liquidation Proceeds on Defaulted
Timeshare Loans prior to deposit of the net Liquidation Proceeds into the Collection Account
pursuant to Section 5.02(f) hereof. To the extent that the Servicer shall subsequently recover any
portion of such Liquidation Expenses from the related Obligor, the

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Servicer shall deposit such amounts into the Collection Account in accordance with Section 5.02(f)
hereof.

          Section 5.03 Duties and Responsibilities of the Servicer.

          (a) In addition to any other customary services which the Servicer may perform or may be
required to perform hereunder, the Servicer shall perform or cause to be performed through
sub-servicers, the following servicing and collection activities in accordance with the Servicing
Standard:

     (i) perform standard accounting services and general record keeping services with
respect to the Timeshare Loans;

     (ii) respond to telephone or written inquiries of Obligors concerning the Timeshare
Loans;

     (iii) keep Obligors informed of the proper place and method for making payment with
respect to the Timeshare Loans;

     (iv) contact Obligors to effect collection and to discourage delinquencies in the
payment of amounts owed under the Timeshare Loans and doing so by any lawful means,
including but not limited to (A) mailing of routine past due notices, (B) preparing and
mailing collection letters, (C) contacting delinquent Obligors by telephone to encourage
payment, and (D) mailing of reminder notices to delinquent Obligors;

     (v) report tax information to Obligors and taxing authorities to the extent required
by law;

     (vi) take such other action as may be necessary or appropriate in the discretion of
the Servicer for the purpose of collecting and transferring to the Indenture Trustee for
deposit into the Collection Account all payments received by the Servicer or remitted to
any of the Servicer’s accounts in respect of the Timeshare Loans (except as otherwise
expressly provided herein), and to carry out the duties and obligations imposed upon the
Servicer pursuant to the terms of this Indenture;

     (vii) remarketing Timeshare Property;

     (viii) arranging for Liquidations of Timeshare Properties related to Defaulted
Timeshare Loans;

     (ix) disposing of Timeshare Property related to the Timeshare Loans whether following
repossession, foreclosure or otherwise;

     (x) to the extent requested by the Indenture Trustee, use reasonable best efforts to
enforce the purchase and substitution obligation of the Seller under the Sale Agreement;

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     (xi) not modify, waive or amend the terms of any Timeshare Loan; provided,
however, the Servicer may modify, waive or amend a Timeshare Loan for which a
default has occurred or is imminent and such modification, amendment or waiver does not (i)
materially alter the interest rate on or the principal balance of such Timeshare Loan, (ii)
shorten the final maturity of, lengthen the timing of payments of either principal or
interest, or any other terms of, such Timeshare Loan in any manner which would have a
material adverse affect on Noteholders, (iii) adversely affect the Timeshare Property
underlying such Timeshare Loan or (iv) reduce materially the likelihood that payments of
interest and principal on such Timeshare Loan shall be made when due; provided,
further, the Servicer may grant an extension of the final maturity of a Timeshare
Loan if the Servicer, in its reasonable discretion, determines that (A) such Timeshare Loan
is in default or default on such Timeshare Loan is likely to occur in the foreseeable
future, and (B) the value of such Timeshare Loan will be enhanced by such extension;
provided, further, that the Servicer shall not (1) grant more than one
extension per calendar year with respect to a Timeshare Loan or (2) grant an extension for
more than one calendar month with respect to a Timeshare Loan in any calendar year;

     (xii) working with Obligors in connection with any transfer of ownership of a
Timeshare Property by an Obligor to another Person, whereby the Servicer may consent to the
assumption by such Person of the Timeshare Loan related to such Timeshare Property;
provided, however, in connection with any such assumption, the rate of
interest borne by, the maturity date of, the principal amount of, the timing of payments of
principal and interest in respect of, and all other material terms of, the related
Timeshare Loan shall not be changed other than as permitted in (xi) above;

     (xiii) deliver such information and data to the Back-Up Servicer as is required
pursuant to Section 5.16 hereof; and

     (xiv) (A) use commercially reasonable best efforts to cause all the timeshare or
fractional interest resorts operated by DRFS or its Affiliates to have property damage
insurance coverage for the full replacement value thereof or, if not available on
commercially reasonable terms, the maximum amount available on commercially reasonable
terms, as determined in accordance with the Servicing Standard and (B) to the extent that
there is any reduction in the policy limits of such coverage or the Servicer has
determined, in accordance with the Servicing Standard, that such coverage is not available
on commercially reasonable terms, provide written notice to the Issuer and each of the
Rating Agency within five Business Days of such determination.

          (b) For so long as an Affiliate of the Servicer controls the Resorts, the Servicer shall use
commercially reasonable best efforts to maintain our cause to maintain each Resort in good repair,
working order and condition (ordinary wear and tear excepted).

          (c) For so long as an Affiliate of the Servicer controls the Resort Association for a Resort,
and an Affiliate of the Servicer is the manager, (i) if an amendment or modification to the related
management contract and master marketing and sale contract materially and adversely affects the
Noteholders, then it may only be amended or modified with the written consent of Holders
representing at least 51% of the then Outstanding Note Balance of each Class of Notes

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and (ii) if an amendment or modification to the related management contract and master marketing
and sale contract does not materially and adversely affect the Noteholders, the Servicer shall send
a copy of such amendment or modification (i) to the Rating Agency and (ii) to the Indenture Trustee
as part of the Monthly Report to be delivered subsequent to the effective date of such amendment or
modification.

          (d) In the event any Lien (other than a Permitted Lien) attaches to any Timeshare Loan or
related collateral from any Person claiming from and through an Affiliate of the Servicer which
materially adversely affects the Issuer’s interest in such Timeshare Loan, the Servicer shall,
within the earlier to occur of ten Business Days after receiving notice of such attachment or the
respective lienholders’ action to foreclose on such lien, either (i) cause such Lien to be released
of record, (ii) provide the Indenture Trustee with a bond in accordance with the applicable laws of
the state in which the Timeshare Property is located, issued by a corporate surety acceptable to
the Indenture Trustee, in an amount and in form reasonably acceptable to the Indenture Trustee or
(iii) provide the Indenture Trustee with such other security as the Indenture Trustee may
reasonably require.

          (e) The Servicer shall: (i) promptly notify the Indenture Trustee and the Rating Agency of
(A) receiving notice of any claim, action or proceeding which may be reasonably expected to have a
material adverse effect on the Trust Estate, or any material part thereof, and (B) any action,
suit, proceeding, order or injunction of which Servicer becomes aware after the date hereof pending
or threatened against or affecting Servicer or any Affiliate which may be reasonably expected to
have a material adverse effect on the Trust Estate or the Servicer’s ability to service the same;
(ii) at the request of Indenture Trustee with respect to a claim or action or proceeding which
arises from or through the Servicer or one of its Affiliates, appear in and defend, at Servicer’s
expense, any such claim, action or proceeding which would have a material adverse effect on the
Timeshare Loans or the Servicer’s ability to service the same; and (iii) comply in all respects,
and shall cause all Affiliates to comply in all respects, with the terms of any orders imposed on
such Person by any governmental authority the failure to comply with which would have a material
adverse effect on the Timeshare Loans or the Servicer’s ability to service the same.

          (f) The Servicer shall not, and shall not permit any Person to, encumber, pledge or otherwise
grant a Lien (other than in the normal course of business) or security interest in and to the
Reservation System (including, without limitation, all hardware, software and data in respect
thereof) and furthermore agrees, and shall use commercially reasonable efforts to keep the
Reservation System operational, not to dispose of the same and to allow the Collections the use of,
and access to, the Reservation System.

          (g) The Servicer shall notify the Indenture Trustee ten days prior to any material amendment
or change to the Credit and Collection Policy, and shall have received written confirmation from
the Rating Agency that such amendment or change will not cause the Rating Agency to reduce, qualify
or withdraw the then current rating assigned to any Class of Notes. The Servicer shall deliver a
copy of any non-material amendments or changes to the Credit and Collection Policy (i) to the
Rating Agency and (ii) to the Indenture Trustee as part of the Monthly Report to be delivered
subsequent to the effective date of such amendments or changes.

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          (h) In connection with the Servicer’s duties under (vii), (viii) and (ix) in subsection (a)
above, the Servicer will, as soon as practical, undertake such duties in the ordinary course in a
manner similar and consistent with (or better than) the manner in which the Servicer sells or
markets other Timeshare Property it or its Affiliates owns. In addition, in connection with the
Servicer’s duties under (vii), (viii) and (ix) of subsection (a) above, the Servicer agrees that it
shall remarket and sell the Timeshare Property related to Timeshare Loans owned by the Issuer
before it remarkets and sells Timeshare Property of the same type owned by the Servicer or any of
the Servicer’s Affiliates (other than Affiliates engaged primarily in receivables securitizations).

          (i) To the extent that any Timeshare Property related to a Defaulted Timeshare Loan is
remarketed, the Servicer agrees that it shall require that any Liquidation Proceeds be in the form
of cash only.

          (j) The Servicer shall provide written notice to the Rating Agency of any material
modification, waiver or amendment of the terms of any Timeshare Loan effected pursuant to Section
5.03(a)(xi) hereof.

          (k) The Servicer shall, on behalf of the Issuer, maintain the perfection and priority of the
security interest Granted hereunder.

          Section 5.04 Servicer Events of Default.

          (a) A “Servicer Event of Default” means the occurrence and continuance of any of the following
events:

     (i) failure by the Servicer to make any required payment, transfer or deposit when due
hereunder and the continuance of such default for a period of three Business Days;

     (ii) failure by the Servicer to provide any required report within five Business Days
of when such report is required to be delivered hereunder;

     (iii) any failure by the Servicer to observe or perform in any material respect any
covenant or agreement which has a material adverse effect on the Noteholders;

     (iv) any representation or warranty made by the Servicer in this Indenture shall prove
to be incorrect in any material respect as of the time when the same shall have been made,
and such breach is not remedied within 30 days (or, if the Servicer shall provide evidence
satisfactory to the Indenture Trustee that such covenant cannot be cured in the 30 day
period and that it is diligently pursuing a cure, 60 days) after the earlier of (x) the
Servicer first acquiring knowledge thereof, and (y) the Indenture Trustee’s giving written
notice thereof to the Servicer;

     (v) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Servicer in an involuntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization, or other similar law or
(B) a decree or order adjudging the Servicer a bankrupt or insolvent, or approving as

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properly filed a petition seeking reorganization, arrangement, adjustment, or composition
of or in respect of the Servicer under any applicable federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator, or other similar official
of the Servicer, or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for relief or
any such other decree or order unstayed and in effect for a period of 60 consecutive days;
or

     (vi) the commencement by the Servicer of a voluntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization, or other similar law or
of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent
by either to the entry of a decree or order for relief in respect of the Servicer in an
involuntary case or proceeding under any applicable federal or state bankruptcy,
insolvency, reorganization, or other similar law or to the commencement of any bankruptcy
or insolvency case or proceeding against it, or the filing by it of a petition or answer or
consent seeking reorganization or relief under any applicable federal or state law, or the
consent by it to the filing of such petition or to the appointment of or taking possession
by a custodian, receiver, liquidator, assignee, trustee, sequestrator, or similar official
of the Servicer or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the Servicer’s failure to pay its debts
generally as they become due, or the taking of corporate action by the Servicer in
furtherance of any such action.

          (b) If any Servicer Event of Default shall have occurred and not been waived hereunder, the
Indenture Trustee may, and upon notice from Holders representing at least 51% of the then
Outstanding Note Balance of each Class of Notes shall, terminate, on behalf of the Noteholders, by
notice in writing to the Servicer, all of the rights and obligations of the Servicer, as Servicer
under this Indenture.

          (c) If any Authorized Officer of the Servicer shall have knowledge of the occurrence of a
default by the Servicer hereunder, the Servicer shall promptly notify the Indenture Trustee, the
Issuer, the Rating Agency and the Initial Purchaser, and shall specify in such notice the action,
if any, the Servicer is taking in respect of such default. Unless consented to by the Holders
representing at least 51% of the then Outstanding Note Balance of each Class of Notes, the Issuer
may not waive any Servicer Event of Default.

          (d) If any Servicer Event of Default shall have occurred and not been waived hereunder, the
Indenture Trustee shall direct and the Servicer shall cause to be delivered, notices to the
Obligors related to the Timeshare Loans, instructing such Obligors to remit payments in respect
thereof to a lockbox account specified by the Indenture Trustee, such lockbox to be maintained as
an Eligible Bank Account for the benefit of the Noteholders. The Indenture Trustee shall cause to
be established a lockbox account in accordance with Section 3.01 hereof.

          Section 5.05 Accountings; Statements and Reports.

          (a) Monthly Servicer Report. Not later than each Determination Date, the Servicer
shall deliver to the Issuer, the Indenture Trustee, the Rating Agency and the Initial Purchaser, a
report (the “Monthly Servicer Report”) substantially in the form of Exhibit J

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hereto. The Monthly Servicer Report shall be completed with the information specified therein for
the related Due Period and shall contain such other information as may be reasonably requested by
the Issuer, the Indenture Trustee or the Initial Purchaser in writing at least five Business Days
prior to such Determination Date. Each such Monthly Servicer Report shall be accompanied by an
Officer’s Certificate of the Servicer in the form of Exhibit K hereto, certifying the
accuracy of the computations reflected in such Monthly Servicer Report.

          (b) Certification as to Compliance. The Servicer shall deliver to the Issuer, the
Indenture Trustee, the Rating Agency and the Initial Purchaser, an Officer’s Certificate on or
before December 31 of each year commencing in 2009: (i) to the effect that a review of the
activities of the Servicer during the preceding calendar year, and of its performance under this
Indenture during such period has been made under the supervision of the officers executing such
Officer’s Certificate with a view to determining whether during such period the Servicer had
performed and observed all of its obligations under this Indenture, and either (A) stating that
based on such review no Servicer Event of Default is known to have occurred and is continuing, or
(B) if such a Servicer Event of Default is known to have occurred and is continuing, specifying
such Servicer Event of Default and the nature and status thereof; and (ii) describing in reasonable
detail to his knowledge any occurrence in respect of any Timeshare Loan which would be of adverse
significance to a Person owning such Timeshare Loan.

          (c) Annual Accountants’ Reports. On or before each April 30 of each year commencing
in 2010, the Servicer shall (i) cause a firm of independent public accountants to furnish a
certificate or statement (and the Servicer shall provide a copy of such certificate or statement to
the Issuer, the Owner Trustee, the Indenture Trustee, the Rating Agency and the Initial Purchaser),
to the effect that such firm has performed certain procedures with respect to the Servicer’s
servicing controls and procedures for the previous calendar year and that, on the basis of such
firms’ procedures, conducted substantially in compliance with standards established by the American
Institute of Certified Public Accountants, nothing has come to the attention of such firm
indicating that the Servicer has not complied with the minimum servicing standards identified in
the Uniform Single Attestation Program for Mortgage Bankers established by the Mortgage Bankers
Association of America (“USAP”), except for such significant exceptions or errors that, in the
opinion of such firm, it is required to report; and (ii) cause its internal auditors to furnish a
certificate or statement to the Issuer, the Indenture Trustee and the Initial Purchaser, to the
effect that such internal auditors have (x) read this Indenture, (y) have performed certain
procedures, in accordance with USAP, with respect to the records and calculations set forth in the
Monthly Servicer Reports delivered by the Servicer during the reporting period and certain
specified documents and records relating to the servicing of the Timeshare Loans and the reporting
requirements with respect thereto and (z) on the basis of such internal auditor’s procedures,
certifies that except for such exceptions as such internal auditors shall believe immaterial and
such other exceptions as shall be set forth in such statement, (A) the information set forth in
such Monthly Servicer Reports was correct; and (B) the servicing and reporting requirements have
been conducted in compliance with this Indenture. In the event such independent public accountants
require the Indenture Trustee to agree to the procedures to be performed by such firm in any of the
reports required to be prepared pursuant to this Section 5.05(c), the Servicer shall direct the
Indenture Trustee in writing to so agree; it being understood and agreed that the Indenture Trustee
will deliver such letter of agreement in conclusive reliance upon the direction of the Servicer,
and the Indenture Trustee has not made any independent

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inquiry or investigation as to, and shall have no obligation or liability in respect of, the
sufficiency, validity or correctness of such procedures.

          (d) Report on Proceedings and Servicer Event of Default. (i) Promptly upon the
Servicer’s becoming aware of any proposed or pending investigation of it by any Governmental
Authority or any court or administrative proceeding which involves or may involve the possibility
of materially and adversely affecting the properties, business, prospects, profits or conditions
(financial or otherwise) of the Servicer and subsidiaries, as a whole, a written notice specifying
the nature of such investigation or proceeding and what action the Servicer is taking or proposes
to take with respect thereto and evaluating its merits, or (ii) immediately upon becoming aware of
the existence of any condition or event which constitutes a Servicer Event of Default, a written
notice to the Issuer, the Indenture Trustee, the Rating Agency and the Initial Purchaser describing
its nature and period of existence and what action the Servicer is taking or proposes to take with
respect thereto.

          Section 5.06 Records.

          The Servicer shall maintain all data for which it is responsible (including, without
limitation, computerized tapes or disks) relating directly to or maintained in connection with the
servicing of the Timeshare Loans (which data and records shall be clearly marked to reflect that
the Timeshare Loans have been Granted to the Indenture Trustee on behalf of the Noteholders and
constitute property of the Trust Estate) at the address specified in Section 13.03 hereof or, upon
15 days’ notice to the Issuer and the Indenture Trustee, at such other place where any Servicing
Officer of the Servicer is located, and shall give the Issuer and the Indenture Trustee or their
authorized agents access to all such information at all reasonable times, upon 72 hours’ written
notice.

          Section 5.07 Fidelity Bond; Errors and Omissions Insurance.

          The Servicer shall maintain or cause to be maintained a fidelity bond and errors and omissions
insurance with respect to the Servicer in such form and amount as is customary for institutions
acting as custodian of funds in respect of timeshare loans or receivables on behalf of
institutional investors. Any such fidelity bond or errors and omissions insurance shall be
maintained in a form and amount that would meet the requirements of prudent institutional loan
servicers. No provision of this Section 5.07 requiring such fidelity bond and errors and omissions
insurance policy shall diminish or relieve the Servicer from its duties and obligations as set
forth in this Indenture. The Servicer shall be deemed to have complied with this provision if one
of its respective Affiliates has such fidelity bond coverage and errors and omissions insurance
policy which, by the terms of such fidelity bond and such errors and omissions insurance policy,
the coverage afforded thereunder extends to the Servicer. Upon a request of the Indenture Trustee,
the Servicer shall deliver to the Indenture Trustee, a certification evidencing coverage under such
fidelity bond or such errors and omission insurance policy. Any such fidelity bond or such errors
and omissions insurance policy shall not be canceled or modified in a materially adverse manner
without ten days’ prior written notice to the Indenture Trustee.

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          Section 5.08 Merger or Consolidation of the Servicer.

          (a) The Servicer shall promptly provide written notice to the Indenture Trustee and the Rating
Agency of any merger or consolidation of the Servicer. The Servicer shall keep in full effect its
existence, rights and franchise as a corporation under the laws of the state of its incorporation
except as permitted herein, and shall obtain and preserve its qualification to do business as a
foreign corporation in each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Indenture or any of the Timeshare Loans and to
perform its duties under this Indenture.

          (b) Any Person into which the Servicer may be merged or consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Servicer shall be a party, or
any Person succeeding to the business of the Servicer, shall be the successor of the Servicer
hereunder, without the execution or filing of any paper or any further act on the part of any of
the parties hereto, anything herein to the contrary notwithstanding;
provided, however,
 that the successor or surviving Person (i) is a company whose business includes the servicing
of assets similar to the Timeshare Loans and shall be authorized to transact business in the state
or states in which the related Timeshare Properties it is to service are situated; (ii) is a U.S.
Person, and (iii) delivers to the Indenture Trustee (A) an agreement, in form and substance
reasonably satisfactory to the Indenture Trustee and the Noteholders, which contains an assumption
by such successor entity of the due and punctual performance and observance of each covenant and
condition to be performed or observed by the Servicer under this Indenture and (B) an Opinion of
Counsel as to the enforceability of such agreement; provided,
further, that the Rating
Agency shall have confirmed in writing that such action will not cause the Rating Agency to reduce,
qualify or withdraw the then current rating assigned to any Class of Notes.

          Section 5.09 Sub-Servicing.

          (a) The Servicer may enter into one or more subservicing agreements with a subservicer
reasonably acceptable to Holders representing at least 51% of the then Outstanding Note Balance of
each Class of Notes. References herein to actions taken or to be taken by the Servicer in
servicing the Timeshare Loans include actions taken or to be taken by a subservicer on behalf of
the Servicer. Any subservicing agreement will be upon such terms and conditions as the Servicer
may reasonably agree and as are not inconsistent with this Indenture. The Servicer shall be
solely responsible for any subservicing fees.

          (b) Notwithstanding any subservicing agreement, the Servicer (and the Successor Servicer if it
is acting as such pursuant to Section 5.16 hereof) shall remain obligated and liable for the
servicing and administering of the Timeshare Loans in accordance with this Indenture without
diminution of such obligation or liability by virtue of such subservicing agreement and to the same
extent and under the same terms and conditions as if the Servicer alone were servicing and
administering the Timeshare Loans.

          Section 5.10 Servicer Resignation.

          The Servicer shall not resign from the duties and obligations hereby imposed on it under this
Indenture unless and until (i) the Successor Servicer shall have assumed the

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responsibilities and obligations of the Servicer hereunder, and (ii) the Indenture Trustee shall
have received written confirmation from the Rating Agency that such action will not cause the
Rating Agency to reduce, qualify or withdraw the then current rating assigned to any Class of
Notes. Upon such resignation, the Servicer shall comply with Section 5.16(f) hereof.

          Section 5.11 Fees and Expenses.

          As compensation for the performance of its obligations under this Indenture, the Servicer
shall be entitled to receive on each Payment Date, from amounts on deposit in the Collection
Account and in the priorities described in Section 3.04 hereof, the Servicing Fee and as
additional compensation, the amounts described in Section 5.02(b) hereof. Other than Liquidation
Expenses, the Servicer shall pay all expenses incurred by it in connection with its servicing
activities hereunder.

          Section 5.12 Access to Certain Documentation.

          Upon five Business Days’ prior written notice (or without prior written notice following a
Servicer Event of Default), the Servicer will, from time to time during regular business hours, as
requested by the Issuer, the Indenture Trustee or any Noteholder of at least 25% of the Aggregate
Outstanding Note Balance of the most senior Class of Notes then outstanding and, prior to the
occurrence of a Servicer Event of Default, at the expense of the Issuer, the Indenture Trustee or
such Noteholder and upon the occurrence and continuance of a Servicer Event of Default, at the
expense of the Servicer, permit the Issuer, the Indenture Trustee or any Noteholder of the most
senior Class of Notes then outstanding or its agents or representatives (i) to examine and make
copies of and abstracts from all books, records and documents (including, without limitation,
computer tapes and disks) in the possession or under the control of the Servicer relating to the
servicing of the Timeshare Loans serviced by it and (ii) to visit the offices and properties of the
Servicer for the purpose of examining such materials described in clause (i) above, and to discuss
matters relating to the Timeshare Loans with any of the officers, employees or accountants of the
Servicer having knowledge of such matters. Nothing in this Section 5.12 shall affect the obligation
of the Servicer to observe any applicable law prohibiting disclosure of information regarding the
Obligors, and the failure of the Servicer to provide access to information as a result of such
obligation shall not constitute a breach of this Section 5.12.

          Section 5.13 No Offset.

          Prior to the termination of this Indenture, the obligations of Servicer under this Indenture
shall not be subject to any defense, counterclaim or right of offset which the Servicer has or may
have against the Issuer, the Indenture Trustee or any Noteholder, whether in respect of this
Indenture, any Timeshare Loan or otherwise.

          Section 5.14 Cooperation.

          The Indenture Trustee agrees to cooperate with the Servicer in connection with the Servicer’s
preparation of the Monthly Servicer Report, including without limitation, providing account
balances of Trust Accounts and notification of the Events of Default or Rapid

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Amortization Period and other information of which the Indenture Trustee has knowledge which may
affect the Monthly Servicer Report.

          Section 5.15 Indemnification; Third Party Claim.

          The Servicer agrees to indemnify the Issuer, the Indenture Trustee, the Custodian and the
Noteholders from and against any and all actual damages (excluding economic losses related to the
collectibility of any Timeshare Loan), claims, reasonable attorneys’ fees and related costs,
judgments, and any other costs, fees and expenses that each may sustain because of the failure of
the Servicer to service the Timeshare Loans in accordance with the Servicing Standard or otherwise
perform its obligations and duties hereunder in compliance with the terms of this Indenture, or
because of any act or omission by the Servicer due to its negligence or willful misconduct in
connection with its maintenance and custody of any funds, documents and records under this
Indenture, or its release thereof except as contemplated by this Indenture. The Servicer shall
immediately notify the Issuer and the Indenture Trustee if it has knowledge or should have
knowledge of a claim made by a third party with respect to the Timeshare Loans, and, if such claim
relates to the servicing of the Timeshare Loans by the Servicer, assume, with the consent of the
Indenture Trustee, the defense of any such claim and pay all expenses in connection therewith,
including counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may
be entered against it. This Section 5.15 shall survive the termination of this Indenture or the
resignation or removal of the Servicer hereunder.

          Section 5.16 Back-Up Servicer and Successor Servicer.

          (a) Subject to the terms and conditions herein, the Issuer hereby appoints Wells Fargo Bank,
National Association as the initial Back-Up Servicer hereunder. The Back-Up Servicer shall
perform all of its duties hereunder in accordance with applicable law, the terms of this Indenture,
the respective Timeshare Loans and, to the extent consistent with the foregoing, in accordance with
the customary and usual procedures employed by the Back-Up Servicer with respect to comparable
assets that the Back-Up Servicer services for itself or other Persons. The Back-Up Servicer shall
be compensated for its services hereunder by the Back-Up Servicing Fee.

          (b) Not later than the fourth Business Day preceding a Payment Date (unless otherwise
requested more frequently by the Indenture Trustee), the Servicer shall prepare and deliver to the
Back-Up Servicer: (i) a copy of the Monthly Servicer Report and all other reports and notices, if
any, delivered to the Issuer and the Indenture Trustee (collectively,
the “Monthly Reports”); (ii)
a computer file or files stored on compact disc, magnetic tape or provided electronically, prepared
in accordance with the record layout for data conversion attached hereto as Exhibit G and
made a part hereof (the “Tape(s)”); and (iii) a computer file or files stored on compact disc,
magnetic tape or provided electronically containing cumulative payment history for the Timeshare
Loans, including servicing collection notes (the “Collection Reports”). The Tape(s) shall contain
(y) all information with respect to the Timeshare Loans as of the close of business on the last day
of the Due Period necessary to store the appropriate data in the Back-Up Servicer’s system from
which the Back-Up Servicer will be capable of preparing a daily trial balance relating to the data
and (z) an initial trial balance showing balances of the Timeshare Loans as of the last business
day corresponding to the date of the Tape(s) (the “Initial Trial Balance”). The Back-Up Servicer
shall have no obligations as to the Collection Reports other

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than to insure that they are able to be opened and read (which it shall determine promptly upon
receipt). The Servicer shall give prompt written notice to the Indenture Trustee, the Back-Up
Servicer and the Initial Purchaser of any modifications in the Servicer’s servicing systems.

          (c) The Back-Up Servicer shall use the Tape(s) and Initial Trial Balance to ensure that the
Monthly Reports are complete on their face and the following items in such Monthly Reports have
been accurately calculated, if applicable, and reported: (i) the Aggregate Loan Balance, (ii) the
Aggregate Outstanding Note Balance, (iii) the payments to be made pursuant to Section 3.04 hereof,
(iv) the Default Level and (v) the Delinquency Level. The Back-Up Servicer shall give written
notice on or prior to the Business Day immediately preceding the related Payment Date to the
Indenture Trustee of any discrepancies discovered pursuant to its review of the items required by
this Section 5.16(c) or if any of the items in Section 5.16(b) can not be open and read.

          (d) Other than the duties specifically set forth in this Indenture and those additional
standard reports or services the Servicer or the Indenture Trustee may request of the Back-Up
Servicer from time to time, the Back-Up Servicer shall have no obligation hereunder, including,
without limitation, to supervise, verify, monitor or administer the performance of the Servicer.
The Back-Up Servicer shall have no liability for any action taken or omitted to be taken by the
Servicer.

          (e) From and after the receipt by the Servicer of a written termination notice pursuant to
Section 5.04 hereof or the resignation of the Servicer pursuant to Section 5.10 hereof, and upon
written notice thereof to the Back-Up Servicer from the Indenture Trustee, all authority and power
of the Servicer under this Indenture, whether with respect to the Timeshare Loans or otherwise,
shall pass to and be vested in the Back-Up Servicer, as the Successor Servicer, on the Assumption
Date (as defined in Section 5.16(f) hereof).

          (f) The Servicer shall perform such actions as are reasonably necessary to assist the
Indenture Trustee and the Successor Servicer in such transfer of the Servicer’s duties and
obligations pursuant to Section 5.16(e) hereof. The Servicer agrees that it shall promptly (and in
any event no later than five Business Days subsequent to its receipt of the notice of termination)
provide the Successor Servicer (with costs being borne by the Servicer) with all documents and
records (including, without limitation, those in electronic form) reasonably requested by it to
enable the Successor Servicer to assume the Servicer’s duties and obligations hereunder, and shall
cooperate with the Successor Servicer in effecting the assumption by the Successor Servicer of the
Servicer’s obligations hereunder, including, without limitation, the transfer within two Business
Days to the Successor Servicer for administration by it of all cash amounts which shall at the time
or thereafter received by it with respect to the Timeshare Loans (provided, however, that the
Servicer shall continue to be entitled to receive all amounts accrued or owing to it under this
Indenture on or prior to the date of such termination). If the Servicer fails to undertake such
action as is reasonably necessary to effectuate such transfer of its duties and obligations, the
Indenture Trustee, or the Successor Servicer if so directed by the Indenture Trustee, is hereby
authorized and empowered to execute and deliver, on behalf of and at the expense of the Servicer,
as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or
accomplish all other acts or things reasonably necessary to effect the purposes of such notice of
termination. Promptly after receipt by the Successor Servicer of such

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documents and records, the Successor Servicer will commence the performance of such servicing
duties and obligations as successor Servicer in accordance with the terms and conditions of this
Indenture (such date, the “Assumption Date”), and from and after the Assumption Date the Successor
Servicer shall receive the Servicing Fee and agrees to and shall be bound by all of the provisions
of this Article V and any other provisions of this Indenture relating to the duties and obligations
of the Servicer, except as otherwise specifically provided herein.

     (i) Notwithstanding anything contained in this Indenture to the contrary, the Successor
Servicer is authorized to accept and rely on all of the accounting, records (including
computer records) and work of the Servicer relating to the Timeshare Loans (collectively,
the “Predecessor Servicer Work Product”) without any audit or other examination thereof, and
the Successor Servicer shall have no duty, responsibility, obligation or liability for the
acts and omissions of the Servicer. If any error, inaccuracy, omission or incorrect or
non-standard practice or procedure (collectively, “Errors”) exist in any Predecessor
Servicer Work Product and such Errors make it materially more difficult to service or should
cause or materially contribute to the Successor Servicer making or continuing any Errors
(collectively, “Continued Errors”), the Successor Servicer shall have no duty,
responsibility, obligation or liability for such Continued Errors;
provided,
however, that the Successor Servicer agrees to use its best efforts to prevent further
Continued Errors. In the event that the Successor Servicer becomes aware of Errors or
Continued Errors, the Successor Servicer, with the prior consent of the Indenture Trustee
(acting at the direction of Notholders representing at least 51% of the then Outstanding
Note Balance of each Class of Notes) shall use its best efforts to reconstruct and reconcile
such data as is commercially reasonable to correct such Errors and Continued Errors and to
prevent future Continued Errors and shall be entitled to recover its costs thereby.

     (ii) The Successor Servicer shall have: (A) no liability with respect to any
obligation which was required to be performed by the terminated or resigned Servicer prior
to the Assumption Date or any claim of a third party based on any alleged action or
inaction of the terminated or resigned Servicer, (B) no obligation to perform any
repurchase or advancing obligations, if any, of the Servicer, (C) no obligation to pay any
taxes required to be paid by the Servicer, (D) no obligation to pay any of the fees and
expenses of any other party involved in this transaction that were incurred by the prior
Servicer and (E) no liability or obligation with respect to any Servicer indemnification
obligations of any prior Servicer including the original Servicer.

          (g) In the event that Wells Fargo Bank, National Association as the initial Back-Up Servicer
is terminated for any reason, or fails or is unable to act as Back-Up Servicer and/or as Successor
Servicer, the Indenture Trustee may enter into a back-up servicing agreement with a back-up
servicer, and may appoint a successor servicer to act under this Indenture, in either event (i) on
such terms and conditions as are provided herein as to the Back-Up Servicer or the Successor
Servicer, as applicable and (ii) with the written confirmation from the Rating Agency that such
action will not cause the Rating Agency to reduce, qualify or withdraw the then current rating
assigned to any Class of Notes.

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          Section 5.17 Limitation on Liability.

          It is expressly understood and agreed by the parties hereto that DRFS is executing this
Indenture solely as Servicer and DRFS undertakes to perform such duties and only such duties as
are specifically set forth in this Indenture applicable to the Servicer.

          Section 5.18 Recordation.

          The Servicer agrees to cause all evidences of recordation and assignment of the original
Mortgage to be delivered to the Custodian to be held as part of the Timeshare Loan Files. Upon the
direction of the Issuer, the Servicer or the Indenture Trustee, the Indenture Trustee shall cause
either the Custodian or a third party appointed by the Indenture Trustee to complete the
Assignments of Mortgage and (at the Servicer’s expense) record such Assignments of Mortgage in all
appropriate jurisdictions.

          Section 5.19 St. Maarten Notice.

          Within 45 days of the Closing Date (with respect to the initial Timeshare Loans) or any
Substitution Date (with respect to a Qualified Substitute Timeshare Loan), as the case may be, the
Servicer shall give notice to each Obligor under a Timeshare Loan with respect to any Resort in
the territory of St. Maarten that such Timeshare Loan has been transferred and assigned to the
Indenture Trustee, in trust, for the benefit of the Noteholders. Such notice may include any
notice or notices that the Issuer’s predecessors in title to the Timeshare Loan may give to the
same Obligor with respect to any transfers and assignments of the Timeshare Loan by such
predecessors. Such notice shall be in the form attached hereto as Exhibit N, as the same
may be amended, revised or substituted by the Indenture Trustee and the Servicer from time to
time.

ARTICLE VI

EVENTS OF DEFAULT; REMEDIES

          Section 6.01 Events of Default.

          “Event of Default” wherever used herein with respect to Notes, means any one of the following:

          (a) default in the payment of interest on any Note within two Business Days after the same
becomes due and payable (determined irrespective of Available Funds); or

          (b) a failure to reduce the Aggregate Outstanding Note Balance to zero and to reimburse all
the Note Balance Write-Down Amounts, if any, at the Stated Maturity; or

          (c) a non-monetary default in the performance, or breach, of any covenant of the Issuer in
this Indenture (other than a covenant dealing with a default in the performance of which or the
breach of which is specifically dealt with elsewhere in this Section 6.01), the continuance of such
default or breach for a period of 30 days (or, if the Issuer shall provide evidence satisfactory to
the Indenture Trustee that such covenant cannot be cured in the 30 day period and

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that it is diligently pursuing a cure, 60 days) after the earlier of (x) the Issuer first
acquiring knowledge thereof, and (y) the Indenture Trustee’s giving written notice thereof to the
Issuer; provided, however, that if such default or breach is in respect of the additional
covenants contained in Section 8.06(a)(i) or (ii), there shall be no grace period whatsoever; or

          (d) if any representation or warranty of the Issuer made in this Indenture shall prove to be
incorrect in any material respect as of the time when the same shall have been made, and such
breach is not remedied within 30 days (or, if the Issuer shall provide evidence satisfactory to the
Indenture Trustee that such representation or warranty cannot be cured in the 30 day period and
that it is diligently pursuing a cure, 60 days) after the earlier of (x) the Issuer first acquiring
knowledge thereof, and (y) the Indenture Trustee’s giving written notice thereof to the Issuer; or

          (e) the entry by a court having jurisdiction in the premises of (i) a decree or order for
relief in respect of the Issuer in an involuntary case or proceeding under any applicable federal
or state bankruptcy, insolvency, reorganization, or other similar law or (ii) a decree or order
adjudging the Issuer a bankrupt or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment, or composition of or in respect of the Issuer under any
applicable federal or state law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator, or other similar official of the Issuer, or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the continuance of any such
decree or order for relief or any such other decree or order unstayed and in effect for a period of
60 consecutive days; or

          (f) the commencement by the Issuer of a voluntary case or proceeding under any applicable
federal or state bankruptcy, insolvency, reorganization, or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by either to the entry of a
decree or order for relief in respect of the Issuer in an involuntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization, or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of
a petition or answer or consent seeking reorganization or relief under any applicable federal or
state law, or the consent by it to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator, or similar
official of the Issuer or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the Issuer’s failure to pay its debts generally as they
become due, or the taking of corporate action by the Issuer in furtherance of any such action; or

          (g) any failure by the Seller (or the Performance Guarantors as required under the Seller
Undertaking Agreement) to cure, repurchase or substitute a Defective Timeshare Loan as required
under the Sale Agreement;

          (h) the Issuer becoming subject to registration as an “investment company” under the
Investment Company Act of 1940, as amended; or

          (i) the impairment of the validity of any security interest of the Indenture Trustee in the
Trust Estate in any material respect, except as expressly permitted hereunder, or the

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creation of any material encumbrance on all or any portion of the Trust Estate not otherwise
permitted which is not stayed or released within 10 days of the Issuer having knowledge of its
creation.

          A Servicer Event of Default shall not constitute an Event of Default hereunder.

          Section 6.02 Acceleration of Maturity; Rescission and Annulment.

          (a) If an Event of Default of the kind specified in Section 6.01(e) or Section 6.01(f) hereof
occurs, each Class of Notes shall automatically become due and payable at its Outstanding Note
Balance together with all accrued and unpaid interest thereon. If an Event of Default (other than
an Event of Default of the kind described in the preceding sentence) is related to the failure to
pay interest or principal in respect of a Class of Notes, the Indenture Trustee shall, upon notice
from Holders (other than DRC or an affiliate thereof) representing at least 66- 2/3% of the
Outstanding Note Balance of the most senior Class of Notes then Outstanding (plus, if the payment
of interest and principal on the most senior Class of Notes is current, the consent of holders
(other than DRC or an affiliate thereof) representing at least a majority of the Outstanding Note
Balance of each Class of Notes which has failed to receive one or more payments of interest or
principal), declare each Class of Notes to be immediately due and payable at its Outstanding Note
Balance together with all accrued and unpaid interest thereon. If an Event of Default (other than
an Event of Default described in the preceding two sentences) shall occur and is continuing, the
Indenture Trustee shall, upon notice from Holders representing at least 66-2/3% of the then
Outstanding Note Balance of each Class of Notes, declare each Class of Notes to be immediately due
and payable at its Outstanding Note Balance together with all accrued and unpaid interest thereon.
Upon any such declaration or automatic acceleration, the Outstanding Note Balance of each Class of
Notes together with all accrued and unpaid interest thereon shall become immediately due and
payable without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Issuer. The Indenture Trustee shall promptly send a notice of any declaration or
automatic acceleration to the Rating Agency.

          (b) At any time after such a declaration of acceleration has been made, or after such
acceleration has automatically become effective and before a judgment or decree for payment of the
money due has been obtained by the Indenture Trustee as hereinafter in this Article provided, the
Holders (other than DRC or an Affiliate thereof) representing at least 66-2/3% of the then
Outstanding Note Balance of each Class of Notes by written notice to the Issuer and the Indenture
Trustee, may rescind and annul such declaration and its consequences if:

     (i) The amounts on deposit in the Trust Accounts and other funds from collections with
respect to the Timeshare Loans in the possession of the Servicer but not yet deposited in
the Trust Accounts, is a sum sufficient to pay:

     (A) all principal due on each Class of Notes which has become due
otherwise than by such declaration of acceleration and interest thereon
from the date when the same first became due until the date of payment or
deposit at the applicable Note Rate,

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     (B) all interest due with respect to each Class of Notes and, to the
extent that payment of such interest is lawful, interest upon overdue
interest from the date when the same first became due until the date of
payment or deposit at a rate per annum equal to the applicable Note Rate,
and

     (C) all sums paid or advanced by the Indenture Trustee
hereunder and the reasonable compensation, expenses, disbursements, and
advances of each of the Indenture Trustee and the Servicer, its agents and
counsel;

     and

     (ii) all Events of Default with respect to the Notes, other than the non-payment of
the Outstanding Note Balance of each Class of Notes which became due solely by such
declaration of acceleration, have been cured or waived as provided in Section 6.13 hereof.

No such rescission shall affect any subsequent Event of Default or impair any right consequent
thereon.

          Section 6.03 Remedies.

          (a) If an Event of Default with respect to the Notes occurs and is continuing of which a
Responsible Officer of the Indenture Trustee has actual knowledge, the Indenture Trustee shall
immediately give notice to each Noteholder as set forth in Section 7.02 hereof and shall solicit
such Noteholders for advice. The Indenture Trustee shall then take such action as so directed by
the Holders representing at least 66-2/3% of the then Outstanding Note Balance of each Class of
Notes subject to the provisions of this Indenture.

          (b) Following any acceleration of the Notes, the Indenture Trustee shall have all of the
rights, powers and remedies with respect to the Trust Estate as are available to secured parties
under the UCC or other applicable law, subject to subsection (d) below. Such rights, powers and
remedies may be exercised by the Indenture Trustee in its own name as trustee of an express trust.

          (c) If an Event of Default specified in Section 6.01(a) hereof occurs and is continuing, the
Indenture Trustee is authorized to recover judgment in its own name and as trustee of an express
trust against the Issuer for the Aggregate Outstanding Note Balance and interest remaining unpaid
with respect to the Notes.

          (d) If an Event of Default occurs and is continuing, the Indenture Trustee may in its
discretion, and at the instruction of the Holders representing at least 66-2/3% of the then
Outstanding Note Balance of each Class of Notes shall proceed to protect and enforce its rights and
the rights of the Noteholders by such appropriate judicial or other proceedings as the Indenture
Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the exercise

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of any power granted herein, or to enforce any other proper remedy. The Indenture Trustee shall
notify the Issuer, the Rating Agency, the Servicer and the Noteholders of any such action.

          (e) If (i) the Indenture Trustee shall have received instructions within 45 days from the date
notice pursuant to Section 6.03(a) hereof is first given from Holders representing at least 66-2/3%
of the then Outstanding Note Balance of each Class of Notes to the effect that such Persons approve
of or request the liquidation of the Timeshare Loans or (ii) upon an Event of Default set forth in
Section 6.01(e) or (f) hereof, the Indenture Trustee shall to the extent lawful, promptly sell,
dispose of or otherwise liquidate the Timeshare Loans in a commercially reasonable manner and on
commercially reasonable terms, which shall include the solicitation of competitive bids; provided,
however, that, upon an Event of Default set forth in Section 6.01(e) or (f) hereof, Holders
representing at least 51% of the then Outstanding Note Balance of each Class of Notes may notify
the Indenture Trustee that such liquidation shall not occur. The Indenture Trustee may obtain a
prior determination from any conservator, receiver or liquidator of the Issuer that the terms and
manner of any proposed sale, disposition or liquidation are commercially reasonable.

          Section 6.04
Indenture Trustee May File Proofs of Claim. (a) In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Issuer, or the property of the Issuer,
the Indenture Trustee (irrespective of whether the principal of the Notes shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the
Indenture Trustee shall have made any demand on the Issuer for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceeding or otherwise:

     (i) to file and prove a claim for the whole amount of principal and interest owing and
unpaid in respect of the Notes and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Indenture Trustee and any
predecessor Indenture Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Indenture Trustee and any predecessor Indenture
Trustee, their agents and counsel) and of the Noteholders allowed in such judicial
proceeding;

     (ii) to collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same; and

     (iii) to participate as a member, voting or otherwise, of any official committee of
creditors appointed in such matter;

and any custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Noteholder to make such payments to
the Indenture Trustee and to pay to the Indenture Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and any predecessor
Indenture Trustee, their agents and counsel, and any other amounts due the Indenture Trustee and
any predecessor Indenture Trustee under Section 7.06 hereof.

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          (b) Nothing herein contained shall be deemed to authorize the Indenture Trustee to
authorize or consent to or accept or adopt on behalf of any Noteholder any plan of reorganization,
agreement, adjustment or composition affecting the Notes or the rights of any Noteholder thereof or
affecting the Timeshare Loans or the other assets constituting the Trust Estate or to authorize the
Indenture Trustee to vote in respect of the claim of any Noteholder in any such proceeding.

          Section 6.05 Indenture Trustee May Enforce Claims Without Possession of Notes.

          All rights of action and claims under this Indenture, the Notes, the Timeshare Loans or the
other assets constituting the Trust Estate may be prosecuted and enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Indenture Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after provisions for the
payment of the reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and any predecessor Indenture Trustee, their agents and counsel, be for the benefit of the
Noteholders in respect of which such judgment has been recovered, and pursuant to the priorities
contemplated by Section 3.04 hereof.

          Section 6.06 Application of Money Collected.

          Subject to the following paragraph, if the Notes have been declared, have automatically
become, or otherwise become due and payable following an Event of Default and such declaration or
automatic acceleration has not been rescinded or annulled, any money collected by the Indenture
Trustee in respect of the Trust Estate and any other money that may be held thereafter by the
Indenture Trustee as security for the Notes, including without limitation the amounts on deposit
in the Reserve Account, shall be applied in the following order, at the date or dates fixed by the
Indenture Trustee and, in case of the distribution of such money on account of principal or
interest, without presentment of any Notes:

	 	(i)	 	to the Indenture Trustee and the Custodian, ratably based on their
respective entitlements, any unpaid Indenture Trustee Fees, Indenture
Trustee Expenses, Custodial Fees or Custodial Expenses incurred and
charged and unpaid as of such date;
	 
	 	(ii)	 	to the Back-Up Servicer, any unpaid Back-Up Servicing Fees and
Transition Expenses;
	 
	 	(iii)	 	to the Owner Trustee, any unpaid Owner Trustee Fees and Owner
Trustee Expenses;
	 
	 	(iv)	 	to the Administrator, any unpaid Administrator Fees;
	 
	 	(v)	 	to the Servicer, any unpaid Servicing Fees; provided,
however, that
immediately after receipt of such Servicing Fees, the Servicer shall
remit the Issuer’s portion of any then due and owing Lockbox Bank Fees
to each Lockbox Bank;

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	 	(vi)	 	to the Class A Noteholders, the Class A Interest Distribution Amount;
	 
	 	(vii)	 	to the Class A Noteholders, all remaining amounts until
the Outstanding Note Balance of the Class A Notes is reduced to zero and all
Note Balance Write-Down Amounts applied to the Class A Notes have been
reimbursed with interest at the related Note Rate;
	 
	 	(viii)	 	to the Class B Noteholders, the Class B Interest Distribution Amount;
	 
	 	(ix)	 	to the Class B Noteholders, all remaining amounts until the
Outstanding Note Balance of the Class B Notes is reduced to zero and all
Note Balance Write-Down Amounts applied to the Class B Notes have been
reimbursed with interest at the related Note Rate; and
	 
	 	(x)	 	to the Owner or any subsequent owners of the beneficial interests in
the Issuer, any remaining amounts.

          Section 6.07 Limitation on Suits.

          No Noteholder, solely by virtue of its status as Noteholder, shall have any right by virtue or
by availing of any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture, unless an Event of Default shall
have occurred and is continuing and the Holders of Notes evidencing not less than 25% of the then
Outstanding Note Balance of each Class of Notes shall have made written request upon the Indenture
Trustee to institute such action, suit or proceeding in its own name as Indenture Trustee hereunder
and shall have offered to the Indenture Trustee such reasonable indemnity as it may require against
the cost, expenses and liabilities to be incurred therein or thereby, and the Indenture Trustee,
for 60 days after its receipt of such notice, request and offer of indemnity, shall have neglected
or refused to institute any such action, suit or proceeding and no direction inconsistent with such
written request has been given such Indenture Trustee during such 60-day period by such
Noteholders; it being understood and intended, and being expressly covenanted by each Noteholder
with every other Noteholder and the Indenture Trustee, that no one or more Noteholders shall have
any right in any manner whatever by virtue or by availing of any provision of this Indenture to
affect, disturb or prejudice the rights of the Holders of any other of such Notes, or to obtain or
seek to obtain priority over or preference to any other such Holder, or to enforce any right under
this Indenture, except in the manner herein provided and for the benefit of all Noteholders. For
the protection and enforcement of the provisions of this Section 6.07, each and every Noteholder
and the Indenture Trustee shall be entitled to such relief as can be given either at law or in
equity.

          Section 6.08 Unconditional Right of Noteholders to Receive Principal and Interest.

          Notwithstanding any other provision in this Indenture, other than the provisions hereof
limiting the right to recover amounts due on the Notes to recoveries from the property comprising
the Trust Estate, the Holder of any Note shall have the absolute and unconditional right to receive
payment of the principal of and interest on such Note as such payments of

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principal and interest become due, including the Stated Maturity, and such right shall not be
impaired without the consent of such Noteholder.

          Section 6.09 Restoration of Rights and Remedies.

          If the Indenture Trustee or any Noteholder has instituted any proceeding to enforce any right
or remedy under this Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Indenture Trustee or to such Noteholder, then and
in every such case, subject to any determination in such proceeding, the Issuer, the Indenture
Trustee and the Noteholders shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Indenture Trustee and the Noteholders
continue as though no such proceeding had been instituted.

          Section 6.10 Rights and Remedies Cumulative.

          Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost, or stolen Notes in Section 2.05(f) hereof, no right or remedy herein conferred
upon or reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

          Section 6.11 Delay or Omission Not Waiver.

          No delay or omission of the Indenture Trustee or of any Holder of any Note to exercise any
right or remedy accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article or by law to the Indenture Trustee or to the Noteholders may be
exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee or
by the Noteholders, as the case may be.

          Section 6.12 Control by Noteholders.

          Except as may otherwise be provided in this Indenture, until such time as the conditions
specified in Sections 11.01(a)(i) and (ii) hereof have been satisfied in full, the Holders
representing at least 66-2/3% of the then Outstanding Note Balance of each Class of Notes shall
have the right to direct the time, method and place of conducting any proceeding for any remedy
available to the Indenture Trustee, or exercising any trust or power conferred on the Indenture
Trustee, with respect to the Notes. Notwithstanding the foregoing:

     (i) no such direction shall be in conflict with any rule of law or with this
Indenture;

     (ii) the Indenture Trustee shall not be required to follow any such direction
which the Indenture Trustee reasonably believes might result in any personal liability on

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the part of the Indenture Trustee for which the Indenture Trustee is not adequately
indemnified; and

     (iii) the Indenture Trustee may take any other action deemed proper by the Indenture
Trustee which is not inconsistent with any such direction; provided that the Indenture
Trustee shall give notice of any such action to each Noteholder.

     Section 6.13 Waiver of Events of Default.

          (a) The Holders representing at least 66-2/3% of the then Outstanding Note Balance of each
Class of Notes may, by one or more instruments in writing, waive any Event of Default on behalf of
all Noteholders hereunder and its consequences, except a continuing Event of Default:

     (i) in respect of the payment of the principal of or interest on any Note (which may
only be waived by the Holder of such Note), or

     (ii) in respect of a covenant or provision hereof which under Article 9 hereof cannot
be modified or amended without the consent of the Holder of each Outstanding Note affected
(which only may be waived by the Holders of all Outstanding Notes affected).

          (b) A copy of each waiver pursuant to Section 6.13(a) hereof shall be furnished by the Issuer
to the Indenture Trustee and each Noteholder. Upon any such waiver, such Event of Default shall
cease to exist and shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Event of Default or impair any right consequent
thereon.

          Section 6.14 Undertaking for Costs.

          All parties to this Indenture agree (and each Holder of any Note by its acceptance thereof
shall be deemed to have agreed) that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against the Indenture
Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section 6.14 shall not apply to
any suit instituted by the Indenture Trustee, to any suit instituted by any Noteholder, or group of
Noteholders representing at least 51% of the then Outstanding Note Balance of each Class of Notes,
or to any suit instituted by any Noteholder for the enforcement of the payment of the principal of
or interest on any Note on or after the maturities for such payments, including the Stated Maturity
as applicable.

          Section 6.15 Waiver of Stay or Extension Laws.

          The Issuer covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or

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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 covenants that it will not hinder, delay or impede the execution of any power herein
granted to the Indenture Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

          Section 6.16 Sale of Trust Estate.

          (a) The power to effect any sale of any portion of the Trust Estate pursuant to Section 6.03
hereof shall not be exhausted by any one or more sales as to any portion of the Trust Estate
remaining unsold, but shall continue unimpaired until the entire Trust Estate so allocated shall
have been sold or all amounts payable on the Notes shall have been paid. The Indenture Trustee
may from time to time, upon directions in accordance with Section 6.12 hereof, postpone any public
sale by public announcement made at the time and place of such sale.

          (b) To the extent permitted by applicable law, the Indenture Trustee shall not sell to a
third party the Trust Estate, or any portion thereof except as permitted under Section 6.03(e)
hereof.

          (c) In connection with a sale of all or any portion of the Trust Estate:

     (i) any one or more Noteholders and the Owner may bid for and purchase the property
offered for sale, and upon compliance with the terms of sale may hold, retain, and possess
and dispose of such property, without further accountability, and any Noteholder may, in
paying the purchase money therefor, deliver in lieu of cash any Outstanding Notes or claims
for interest thereon for credit in the amount that shall, upon distribution of the net
proceeds of such sale, be payable thereon, and the Notes, in case the amounts so payable
thereon shall be less than the amount due thereon, shall be returned to the Noteholders
after being appropriately stamped to show such partial payment; provided, however, that the
Owner may irrevocably waive its option to bid for and purchase the property offered for
sale by delivering a waiver letter to the Indenture Trustee;

     (ii) the Indenture Trustee shall execute and deliver an appropriate instrument of
conveyance prepared by the Servicer transferring its interest without representation or
warranty and without recourse in any portion of the Trust Estate in connection with a sale
thereof;

     (iii) the Indenture Trustee is hereby irrevocably appointed the agent and
attorney-in-fact of the Issuer to transfer and convey its interest in any portion of the
Trust Estate in connection with a sale thereof, and to take all action necessary to effect
such sale;

     (iv) no purchaser or transferee at such a sale shall be bound to ascertain the
Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or
see to the application of any moneys; and

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     (v) The method, manner, time, place and terms of any sale of all or any portion
of the Trust Estate shall be commercially reasonable.

ARTICLE VII

THE INDENTURE TRUSTEE

          Section 7.01 Certain Duties. The Indenture 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 Indenture Trustee
(including, without limitation, the duties referred to in Section 5.04 hereof during the
continuance of a Servicer Event of Default, or a Servicer Event of Default resulting in the
appointment of the Back-Up Servicer as Successor Servicer pursuant to Section 5.16 hereof).

          (b) In the absence of bad faith on its part, the Indenture 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 Indenture Trustee and conforming to the requirements of
this Indenture; but in the case of any such certificates or opinions which by any provision hereof
are specifically required to be furnished to the Indenture Trustee, the Indenture Trustee shall be
under a duty to examine the same to determine whether or not they conform to the requirements of
this Indenture, provided however, the Indenture Trustee shall not be required to verify or
recalculate the contents thereof.

          (c) In case an Event of Default or a Servicer Event of Default (resulting in the appointment
of the Back-Up Servicer as Successor Servicer) has occurred and is continuing, the Indenture
Trustee shall exercise such of 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 of such Person’s own affairs; provided, however, that no
provision in this Indenture shall be construed to limit the obligations of the Indenture Trustee to
provide notices under Section 7.02 hereof.

          (d) The Indenture Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the Noteholders
pursuant to this Indenture, unless such Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity (which may be in the form of written assurances) against the
costs, expenses and liabilities which might be incurred by it in compliance with such request or
direction.

          (e) No provision of this Indenture shall be construed to relieve the Indenture Trustee from
liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

     (i) this Section 7.01(e) shall not be construed to limit the effect of Section 7.01(a) and (b) hereof;

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

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     (iii) the Indenture Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the written direction of the
holders of the requisite principal amount of the outstanding Notes, or in accordance with
any written direction delivered to it under Section 6.02(a) hereof, relating to the time,
method and place of conducting any proceeding for any remedy available to the Indenture
Trustee, or exercising any trust or power conferred upon the Indenture Trustee, under this
Indenture.

          (f) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section 7.01.

          (g) The Indenture Trustee makes no representations or warranties with respect to the
Timeshare Loans.

          (h) Notwithstanding anything to the contrary herein, the Indenture Trustee is not required 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 against such risk
or liability is not reasonably assured to it.

          Section 7.02 Notice of Events of Default and Rapid Amortization Period.

          The Indenture Trustee shall promptly (but in any event within three Business Days) notify the
Issuer, the Servicer, the Rating Agency and the Noteholders upon a Responsible Officer obtaining
actual knowledge of any event which constitutes an Event of Default or a Servicer Event of Default,
or would trigger a Rapid Amortization Period or would constitute an Event of Default or a Servicer
Event of Default but for the requirement that notice be given or time elapse or both, provided,
further, that this Section 7.02 shall not limit the obligations of the Indenture Trustee to provide
notices expressly required by this Indenture.

          Section 7.03 Certain Matters Affecting the Indenture Trustee. Subject to the
provisions of Section 7.01 hereof:

          (a) The Indenture Trustee may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by the proper party or
parties;

          (b) Any request or direction of any Noteholders, the Issuer, or the Servicer mentioned herein
shall be in writing;

          (c) Whenever in the performance of its duties hereunder the Indenture Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Indenture Trustee (unless other evidence be herein specifically prescribed) may,
in the absence of bad faith on its part, rely upon an Officer’s Certificate or Opinion of Counsel;

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          (d) The Indenture Trustee may consult with counsel and the advice of such counsel
or any Opinion of Counsel shall be deemed authorization in respect of any action taken, suffered,
or omitted by it hereunder in good faith and in reliance thereon;

          (e) Prior to the occurrence of an Event of Default or a Servicer Event of Default, so long as
a Rapid Amortization Period does not exist, or after the curing of all Events of Default or
Servicer Events of Default which may have occurred, the Indenture Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or other paper
document, unless requested in writing so to do by Noteholders representing at least 51% of the
then Outstanding Note Balance of each Class of Notes; provided, however, that if the
payment within a reasonable time to the Indenture Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the reasonable opinion of
the Indenture Trustee, not reasonably assured to the Indenture Trustee by the security afforded to
it by the terms of this Indenture, the Indenture Trustee may require reasonable indemnity against
such cost, expense or liability as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Servicer or, if paid by the Indenture Trustee, shall be
reimbursed by the Servicer upon demand;

          (f) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys or a custodian (which may be
Affiliates of the Indenture Trustee) and the Indenture Trustee shall not be liable for any acts or
omissions of such agents, attorneys or custodians appointed with due care by it hereunder; and

          (g) Delivery of any reports, information and documents to the Indenture Trustee provided for
herein is for informational purposes only (unless otherwise expressly stated) and the Indenture
Trustee’s receipt of such shall not constitute constructive knowledge of any information
contained therein or determinable from information contained therein, including the Servicer’s or
the Issuer’s compliance with any of its representations, warranties or covenants hereunder (as to
which the Indenture Trustee is entitled to rely exclusively on Officers’ Certificates).

          Section 7.04 Indenture Trustee Not Liable for Notes or Timeshare Loans. The Indenture
Trustee makes no representations as to the validity or sufficiency of this Indenture or any
Transaction Document, the Notes (other than the authentication thereof) or of any Timeshare Loan.
The Indenture Trustee shall not be accountable for the use or application by the Issuer of funds
paid to the Issuer in consideration of conveyance of the Timeshare Loans to the Trust Estate.

          (b) The Indenture Trustee shall have no responsibility or liability for or with respect to
the validity of any security interest in any property securing a Timeshare Loan; the existence or
validity of any Timeshare Loan, the validity of the assignment of any Timeshare Loan to the Trust
Estate or of any intervening assignment; the review of any Timeshare Loan, any Timeshare Loan
File, the completeness of any Timeshare Loan File, the receipt by the Custodian of any Timeshare
Loan or Timeshare Loan File (it being understood that the Indenture Trustee has not reviewed and
does not intend to review such matters); the performance or

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enforcement of any Timeshare Loan; the compliance by the Issuer or the Servicer with any
covenant or the breach by the Servicer or the Issuer of any warranty or representation made
hereunder or in any Transaction Document or the accuracy of any such warranty or representation;
the acts or omissions of the Issuer, the Servicer or any Obligor; or any action of the Servicer or
the Servicer taken in the name of the Indenture Trustee.

          (c) If the Back-Up Servicer acts as Successor Servicer hereunder, it shall be entitled to the
protections of Section 7.04(b) hereof.

          Section 7.05 Indenture Trustee May Own Notes.

          The Indenture Trustee in its individual or any other capacity may become the owner or pledgee
of Notes with the same rights as it would have if it were not Indenture Trustee.

          Section 7.06 Indenture Trustee’s Fees and Expenses.

          On each Payment Date, the Indenture Trustee shall be entitled to the Indenture Trustee Fee
and reimbursement of Indenture Trustee Expenses in the priority provided in Section 3.04 hereof.

          Section 7.07 Eligibility Requirements for Indenture Trustee.

          The Indenture Trustee hereunder shall at all times (a) be a corporation, depository
institution, national banking association or trust company organized and doing business under the
laws of the United States of America or any state thereof authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least $50,000,000, (b) be
subject to supervision or examination by federal or state authority, (c) be capable of maintaining
an Eligible Bank Account, (d) have a long-term unsecured debt rating of not less than “Baa2” from
Moody’s or “A+” from S&P and (e) shall be acceptable to Noteholders representing at least 51% of
the then Outstanding Note Balance of each Class of Notes. If such institution publishes reports of
condition at least annually, pursuant to or to the requirements of the aforesaid supervising or
examining authority, then for the purpose of this Section 7.07, the combined capital and surplus of
such institution shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Indenture Trustee shall cease to
be eligible in accordance with the provisions of this Section 7.07, the Indenture Trustee shall
resign immediately in the manner and with the effect specified in Section 7.08 hereof.

          Section 7.08 Resignation or Removal of Indenture Trustee. The Indenture Trustee may at
any time resign and be discharged with respect to the Notes by giving 60 days’ written notice
thereof to the Servicer, the Issuer and the Noteholders. Upon receiving such notice of resignation,
the Issuer shall promptly appoint a successor Indenture Trustee not objected to by Noteholders
representing more than 51% of the then Outstanding Note Balance of each Class of Notes within 30
days of such notice, by written instrument, in quintuplicate, one counterpart of which instrument
shall be delivered to each of the Issuer, the Servicer, the successor Indenture Trustee and the
predecessor Indenture Trustee. If no successor Indenture Trustee shall have been so appointed and
have accepted appointment within 60 days after the

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giving of such notice of resignation, the resigning Indenture Trustee may petition any court
of competent jurisdiction for the appointment of a successor Indenture Trustee.

          (b) If at any time the Indenture Trustee shall cease to be eligible in accordance with the
provisions of Section 7.07 hereof and shall fail to resign after written request therefor by the
Issuer, or if at any time the Indenture Trustee shall be legally unable to act, fails to perform in
any material respect its obligations under this Indenture, or shall be adjudged a bankrupt or
insolvent, or a receiver of the Indenture Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Indenture Trustee or of its property or affairs
for the purpose of rehabilitation, conservation or liquidation, then the Issuer or Holders
representing more than 51% of the then Outstanding Note Balance of each Class of Notes may direct,
and the Servicer shall follow such direction and remove the Indenture Trustee. If it removes
the Indenture Trustee under the authority of the immediately preceding sentence, the Issuer shall
promptly appoint a successor Indenture Trustee not objected to by Holders representing more than
51% of the then Outstanding Note Balance of each Class of Notes, within 30 days after prior
written notice, by written instrument, one counterpart of which instrument shall be delivered to
each of the Issuer, the Servicer, the Noteholders, the Rating Agency, the successor Indenture
Trustee and the predecessor Indenture Trustee.

          (c) Any resignation or removal of the Indenture Trustee and appointment of a successor
Indenture Trustee pursuant to any of the provisions of this Section 7.08 shall not become
effective until acceptance of appointment by the successor Indenture Trustee as provided in
Section 7.09 hereof.

          Section 7.09 Successor Indenture Trustee. Any successor Indenture Trustee appointed as
provided in Section 7.08 hereof shall execute, acknowledge and deliver to each of the Servicer, the
Issuer, the Noteholders and to its predecessor Indenture Trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the predecessor Indenture
Trustee shall become effective and such successor Indenture Trustee, without any further act, deed
or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder with like effect as if originally named a Indenture Trustee. The predecessor
Indenture Trustee shall deliver or cause to be delivered to the successor Indenture Trustee or its
custodian any Transaction Documents and statements held by it or its custodian hereunder; and the
Servicer and the Issuer and the predecessor Indenture Trustee shall execute and deliver such
instruments and do such other things as may reasonably be required for the full and certain vesting
and confirmation in the successor Indenture Trustee of all such rights, powers, duties and
obligations.

          (b) In case of the appointment hereunder of a successor Indenture Trustee with respect to the
Notes, the Issuer, the retiring Indenture Trustee and each successor Indenture Trustee with
respect to the Notes shall execute and deliver an indenture supplemental hereto wherein each
successor Indenture Trustee shall accept such appointment and which (i) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each
successor Indenture Trustee all the rights, powers, trusts and duties of the retiring Indenture
Trustee with respect to the Notes to which the appointment of such successor Indenture Trustee
relates, (ii) if the retiring Indenture Trustee is not retiring with respect to all Notes, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all

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the rights, powers, trusts and duties of the retiring Indenture Trustee with respect to the
Notes as to which the retiring Indenture Trustee is not retiring shall continue to be vested in
the retiring Indenture Trustee, and (iii) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration of the Trust
Estate hereunder by more than one Indenture Trustee, it being understood that nothing herein or in
such supplemental indenture shall constitute such Indenture Trustees co-trustees of the same
allocated trust and that each such Indenture Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by any other such
Indenture Trustee; and upon the execution and delivery of such supplemental indenture the
resignation or removal of the retiring Indenture Trustee shall become effective to the extent
provided therein and each such successor Indenture Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Indenture Trustee with respect to the Notes to which the appointment of such successor Indenture
Trustee relates; but, on request of the Issuer or any successor Indenture Trustee, such retiring
Indenture Trustee shall duly assign, transfer and deliver to such successor Indenture Trustee all
property and money held by such retiring Indenture Trustee hereunder with respect to the Notes of
that or those to which the appointment of such successor Indenture Trustee relates.

          Upon request of any such successor Indenture Trustee, the Issuer shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor trustee all
such rights, powers and trusts referred to in the preceding paragraph.

          (c) No successor Indenture Trustee shall accept appointment as provided in this Section 7.09
unless at the time of such acceptance such successor Indenture Trustee shall be eligible under the
provisions of Section 7.07 hereof.

          (d) Upon acceptance of appointment by a successor Indenture Trustee as provided in this
Section 7.09, the Servicer shall mail notice of the succession of such Indenture Trustee hereunder
to each Noteholder at its address as shown in the Note Register. If the Servicer fails to mail
such notice within ten days after acceptance of appointment by the successor Indenture Trustee,
the successor Indenture Trustee shall cause such notice to be mailed at the expense of the Issuer
and the Servicer.

          Section 7.10 Merger or Consolidation of Indenture Trustee.

          Any corporation into which the Indenture Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which the Indenture Trustee shall be a party, or any corporation succeeding to the corporate trust
business of the Indenture Trustee, shall be the successor of the Indenture Trustee hereunder,
provided such corporation shall be eligible under the provisions of Section 7.07 hereof,
without the execution or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding.

          Section 7.11 Appointment of Co-Indenture Trustee or Separate Indenture Trustee. At
any time or times for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Trust Estate may at the time be located or in which any action of the Indenture
Trustee may be required to be performed or taken, the Indenture Trustee,

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the Servicer or the Holders representing at least 51% of the then Outstanding Note Balance
of each Class of Notes, by an instrument in writing signed by it or them, may appoint, at the
reasonable expense of the Issuer (as an Indenture Trustee Expense) and the Servicer, one or more
individuals or corporations to act as separate trustee or separate trustees or co-trustee, acting
jointly with the Indenture Trustee, of all or any part of the Trust Estate, to the full extent that
local law makes it necessary for such separate trustee or separate trustees or co-trustee acting
jointly with the Indenture Trustee to act. Notwithstanding the appointment of any separate or
co-trustee, the Indenture Trustee shall remain obligated and liable for the obligations of the
Indenture Trustee under this Indenture. The Indenture Trustee shall promptly send a notice of any
such appointment to the Rating Agency.

          (b) The Indenture Trustee and, at the request of the Indenture Trustee, the Issuer shall
execute, acknowledge and deliver all such instruments as may be required by the legal requirements
of any jurisdiction or by any such separate trustee or separate trustees or co-trustee for the
purpose of more fully confirming such title, rights, or duties to such separate trustee or
separate trustees or co-trustee. Upon the acceptance in writing of such appointment by any such
separate trustee or separate trustees or co-trustee, it, he, she or they shall be vested with such
title to the Trust Estate or any part thereof, and with such rights, powers, duties and
obligations as shall be specified in the instrument of appointment, and such rights, powers,
duties and obligations shall be conferred or imposed upon and exercised or performed by the
Indenture Trustee, or the Indenture Trustee and such separate trustee or separate trustees or
co-trustees jointly with the Indenture Trustee subject to all the terms of this Indenture, except
to the extent that under any law of any jurisdiction in which any particular act or acts are to be
performed the Indenture Trustee shall be incompetent or unqualified to perform such act or acts,
in which event such rights, powers, duties and obligations shall be exercised and performed by
such separate trustee or separate trustees or co-trustee, as the case may be. Any separate
trustee or separate trustees or co-trustee may, at any time by an instrument in writing,
constitute the Indenture Trustee its attorney-in-fact and agent with full power and authority to
do all acts and things and to exercise all discretion on its behalf and in its name. In any case
any such separate trustee or co-trustee shall die, become incapable of acting, resign or be
removed, the title to the Trust Estate and all assets, property, rights, power duties and
obligations and duties of such separate trustee or co-trustee shall, so far as permitted by law,
vest in and be exercised by the Indenture Trustee, without the appointment of a successor to such
separate trustee or co-trustee unless and until a successor is appointed.

          (c) All provisions of this Indenture which are for the benefit of the Indenture Trustee shall
extend to and apply to each separate trustee or co-trustee appointed pursuant to the foregoing
provisions of this Section 7.11.

          (d) Every additional trustee and separate trustee hereunder shall, to the extent permitted by
law, be appointed and act and the Indenture Trustee shall act, subject to the following provisions
and conditions: (i) all powers, duties and obligations and rights conferred upon the Indenture
Trustee in respect of the receipt, custody, investment and payment of monies shall be exercised
solely by the Indenture Trustee; (ii) all other rights, powers, duties and obligations conferred
or imposed upon the Indenture Trustee shall be conferred or imposed and exercised or performed by
the Indenture Trustee and such additional trustee or trustees and separate trustee or trustees
jointly except to the extent that under any law of any jurisdiction in

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which any particular act or acts are to be performed, the Indenture Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties
and obligations (including the holding of title to the Timeshare Properties in any such
jurisdiction) shall be exercised and performed by such additional trustee or trustees or separate
trustee or trustees; (iii) no power hereby given to, or exercisable by, any such additional trustee
or separate trustee shall be exercised hereunder by such trustee except jointly with, or with the
consent of, the Indenture Trustee; and (iv) no trustee hereunder shall be personally liable by
reason of any act or omission of any other trustee hereunder.

          If at any time, the Indenture Trustee shall deem it no longer necessary or prudent in order to
conform to such law, the Indenture Trustee shall execute and deliver all instruments and agreements
necessary or proper to remove any additional trustee or separate trustee.

          (e) Any request, approval or consent in writing by the Indenture Trustee to any additional
trustee or separate trustee shall be sufficient warrant to such additional trustee or separate
trustee, as the case may be, to take such action as may be so requested, approved or consented to.

          (f) Notwithstanding any other provision of this Section 7.11, the powers of any additional
trustee or separate trustee shall not exceed those of the Indenture Trustee hereunder.

          Section 7.12 Note Registrar Rights.

          So long as the Indenture Trustee is the Note Registrar, the Note Registrar shall be entitled
to the rights, benefits and immunities of the Indenture Trustee as set forth in this Article VII
to the same extent and as fully as though named in place of the Indenture Trustee.

          Section 7.13 Authorization.

          The Indenture Trustee is hereby authorized to enter into and perform each of the Transaction
Documents and the Depository Agreement.

ARTICLE VIII

COVENANTS

          Section 8.01 Payment
of Principal and Interest.

          The Issuer will cause the due and punctual payment of the principal of and interest on the
Notes in accordance with the terms of the Notes and this Indenture.

          Section 8.02 Maintenance of Office or Agency; Chief Executive Office.

          The Issuer will maintain an office or agency in the State of Delaware at the Corporate Trust
Office of the Owner Trustee, where notices and demands to or upon the Issuer in respect of the
Notes and this Indenture may be served.

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          Section 8.03 Money for Payments to Noteholders to be Held in
Trust.

          (a) All payments of amounts due and payable with respect to any Notes that are to be made
from amounts withdrawn from the Trust Accounts pursuant to Section 3.04 or Section 6.06 hereof
shall be made on behalf of the Issuer by the Indenture Trustee, and no amounts so withdrawn from
the Collection Account for payments of Notes shall be paid over to the Issuer under any
circumstances except as provided in this Section 8.03, in Section 3.04 hereof or Section 6.06
hereof.

          (b) In making payments hereunder, the Indenture Trustee will hold all sums held by it for the
payment of amounts due with respect to the Notes in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided
and pay such sums to such Persons as herein provided.

          (c) Except as required by applicable law, any money held by the Indenture Trustee in trust
for the payment of any amount due with respect to any Note and remaining unclaimed for three years
after such amount has become due and payable to the Noteholder shall be discharged from such trust
and, subject to applicable escheat laws, and so long as no Event of Default has occurred and is
continuing, paid to the Issuer upon request; otherwise, such amounts shall be redeposited in the
Collection Account as Available Funds, and such Noteholder shall thereafter, as an unsecured
general creditor, look only to the Issuer for payment thereof (but only to the extent of the
amounts so paid to the Issuer), and all liability of the Indenture Trustee with respect to such
trust money shall thereupon cease.

          Section 8.04
Existence; Merger; Consolidation, etc.

          (a) The Issuer will keep in full effect its existence, rights and franchises as a statutory
trust under the laws of the State of Delaware, and will obtain and preserve its qualification to
do business as a foreign statutory trust in each jurisdiction in which such qualification is or
shall be necessary to protect the validity and enforceability of this Indenture, the Notes or any
of the Timeshare Loans.

          (b) The Issuer shall at all times observe and comply in all material respects with (i) all
laws applicable to it, (ii) all requirements of law in the declaration and payment of
distributions, (iii) all requisite and appropriate formalities (including without limitation all
appropriate authorizations required by the Trust Agreement) in the management of its business and
affairs and the conduct of the transactions contemplated hereby, and (iv) the provisions of the
Trust Agreement.

          (c) The Issuer shall not (i) consolidate or merge with or into any other Person or convey or
transfer its properties and assets substantially as an entirety to any other Person or (ii)
commingle its assets with those of any other Person.

          (d) The Issuer shall not become an “investment company” or under the “control” of an
“investment company” as such terms are defined in the Investment Company Act of 1940, as amended
(or any successor or amendatory statute), and the rules and regulations thereunder (taking into
account not only the general definition of the term “investment company” but also any available
exceptions to such general definition); provided, however, that the Issuer shall be

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in compliance with this Section 8.04 if it shall have obtained an order exempting it
from regulation as an “investment company” so long as it is in compliance with the conditions
imposed in such order.

          Section 8.05 Protection of Trust Estate; Further Assurances.

          The Issuer will from time to time execute and deliver all such supplements and amendments
hereto and all such financing statements, continuation statements, instruments of further
assurance, and other instruments, and will take such other action as may be necessary or advisable
to:

     (i) Grant more effectively the assets comprising all or any portion of the Trust
Estate;

     (ii) maintain or preserve the lien of this Indenture or carry out more effectively the
purposes hereof;

     (iii) publish notice of, or protect the validity of, any Grant made or to be made by
this Indenture and perfect the security interest contemplated hereby in favor of the
Indenture Trustee in each of the Timeshare Loans and all other property included in the
Trust Estate; provided, that the Issuer shall not be required to cause the
recordation of the Indenture Trustee’s name as lienholder on the related title documents
for the Timeshare Properties so long as no Event of Default has occurred and is continuing;

     (iv) enforce or cause the Servicer to enforce any of the Timeshare Loans in accordance
with the Servicing Standard, provided, however, the Issuer will not cause the
Servicer to obtain on behalf of the Indenture Trustee or the Noteholders, any Timeshare
Property or to take any actions with respect to any property the result of which would
adversely affect the interests of the Indenture Trustee or the Noteholders (including, but
not limited to actions which would cause the Indenture Trustee or the related Noteholders
to be considered a holder of title, mortgagee-in-possession, or otherwise, or an “owner” or
“operator” of Timeshare Property not in compliance with applicable environmental statutes);
and

     (v) preserve and defend title to the Timeshare Loans (including the right to receive
all payments due or to become due thereunder), the interests in the Timeshare Properties,
or other property included in the Trust Estate and preserve and defend the rights of the
Indenture Trustee in the Trust Estate (including the right to receive all payments due or
to become due thereunder) against the claims of all Persons and parties other than as
permitted hereunder.

The Issuer, upon the Issuer’s failure to do so, hereby irrevocably designates the Indenture
Trustee and the Servicer, severally, its agents and attorneys-in-fact to execute any financing
statement or continuation statement or assignment of Mortgage required pursuant to this Section
8.05; provided, however, that such designation shall not be deemed to create a duty in the
Indenture Trustee to monitor the compliance of the Issuer with the foregoing covenants, and
provided, further, that the duty of the Indenture Trustee to execute any instrument
required pursuant to this Section 8.05 shall arise only if a Responsible Officer of the Indenture
Trustee

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has actual knowledge of any failure of the Issuer to comply with the provisions of this
Section 8.05. Such financing statements may describe the Trust Estate in the same manner as
described herein or may contain an indication or description of collateral that describes such
property in any other manner as any of them may determine, in its sole discretion, is necessary,
advisable or prudent to ensure the perfection of the security interest in the Trust Estate granted
to the Indenture Trustee herein, including, without limitation, describing such property as “all
assets” or “all personal property, whether now owned or hereafter acquired.”

          Section 8.06 Additional Covenants.

          (a) The Issuer will not:

     (i) sell, transfer, exchange or otherwise dispose of any portion of the Trust Estate
except as expressly permitted by this Indenture;

     (ii) claim any credit on, or make any deduction from, the principal of, or interest
on, any of the Notes by reason of the payment of any taxes levied or assessed upon any
portion of the Trust Estate;

     (iii) (A) permit the validity or effectiveness of this Indenture or any Grant hereby to
be impaired, or permit the lien of this Indenture to be amended, hypothecated, subordinated,
terminated or discharged, or permit any Person to be released from any covenants or
obligations under this Indenture, except as may be expressly permitted hereby, (B) permit
any lien, charge, security interest, mortgage or other encumbrance to be created on or to
extend to or otherwise arise upon or burden the Trust Estate or any part thereof or any
interest therein or the proceeds thereof other than the lien of this Indenture, or (C)
except as otherwise contemplated in this Indenture, permit the lien of this Indenture not to
constitute a valid first priority security interest in the Trust Estate; or

     (iv) take any other action or fail to take any actions which may cause the Issuer to
be taxable as (A) an association pursuant to Section 7701 of the Code and the corresponding
regulations, (B) a publicly traded partnership taxable as a corporation pursuant to Section
7704 of the Code and the corresponding regulations or (C) a taxable mortgage pool pursuant
to Section 7701(i) of the Code and the corresponding regulations.

          (b) Notice of Events of Default and Rapid Amortization Period. Immediately, but in no
event more than one Business Day upon becoming aware of the existence of any condition or event
which constitutes a Default or an Event of Default or a Servicer Event of Default or triggers a
Rapid Amortization Period, the Issuer shall deliver to the Indenture Trustee a written notice
describing its nature and period of existence and what action the Issuer is taking or proposes to
take with respect thereto.

          (c) Report on Proceedings. Promptly upon the Issuer’s becoming aware of (i) any
proposed or pending investigation of it by any governmental authority or agency; or (ii) any
pending or proposed court or administrative proceeding which involves or may involve the
possibility of materially and adversely affecting the properties, business, prospects, profits or
condition (financial or otherwise) of the Issuer, the Issuer shall deliver to the Indenture Trustee
and the Rating Agency a written notice specifying the nature of such investigation or proceeding

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and what action the Issuer is taking or proposes to take with respect thereto and
evaluating its merits.

          Section 8.07 Taxes. The Issuer shall pay, as an Administrator Expense in accordance
with Section 3.04, all taxes when due and payable or levied against its assets, properties or
income, including any property that is part of the Trust Estate, except to the extent the Issuer
is contesting the same in good faith and has set aside adequate reserves in accordance with
generally accepted accounting principles for the payment thereof. The Issuer shall be disregarded
for federal income tax purposes.

          Section 8.08 Treatment of Note as Debt for Tax Purposes.

          The Issuer shall treat the Notes as indebtedness for all federal, state and local income and
franchise tax purposes.

ARTICLE IX

SUPPLEMENTAL INDENTURES

          Section 9.01 Supplemental Indentures without Consent of Noteholders.

          (a) The Issuer, by an Issuer Order, and the Indenture Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form satisfactory to the
Indenture Trustee without the consent of any Noteholder, for any of the following purposes:

     (i) to correct or amplify the description of any property at any time subject to the
lien of this Indenture, or to better assure, convey and confirm unto the Indenture Trustee
any property subject or required to be subjected to the lien of this Indenture;
provided such action pursuant to this clause (i) shall not adversely affect the
interests of the Noteholders in any respect;

     (ii) to evidence and provide for the acceptance of appointment hereunder by a
successor Indenture Trustee with respect to the Notes and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Indenture Trustee, pursuant to the
requirements of Section 7.09 and Section 7.11 hereof; or

     (iii) to cure any ambiguity, to correct or supplement any provision herein which may
be defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture; provided that
such action pursuant to this clause (iii) shall not adversely affect the interests of the
Holders of Notes.

          (b) The Indenture Trustee shall promptly deliver, at least five Business Days prior to the
effectiveness thereof, to each Noteholder and the Rating Agency a copy of any supplemental
indenture entered into pursuant to this Section 9.01 hereof.

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          (c) Provided that all other conditions precedent have been satisfied, the
Indenture Trustee shall approve any supplemental indenture for which it receives written
confirmation from the Rating Agency that such supplemental indenture will not cause the Rating
Agency to reduce, qualify or withdraw the then current rating assigned to any Class of Notes (and
any Opinion of Counsel requested by the Indenture Trustee in connection with any such supplemental
indenture may rely expressly on such confirmation as the basis therefor).

          Section 9.02 Supplemental Indentures with Consent of Noteholders.

          (a) With the consent of the Holders representing not less than 51% of the then Outstanding
Note Balance of each Class of Notes and by Act of said Noteholders delivered to the Issuer and the
Indenture Trustee, the Issuer, by a Issuer Order, and the Indenture Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or of modifying in
any manner the rights of the Noteholders under this Indenture; provided, that no
supplemental indenture shall, without the consent of the Holder of 100% of the then Outstanding
Note Balance of each Class of Notes affected thereby:

     (i) change the Stated Maturity of any Note or the amount of principal payments or
interest payments due or to become due on any Payment Date with respect to any Note, or
change the priority of payment thereof as set forth herein, or reduce the principal amount
thereof or the Note Rate thereon, or change the place of payment where, or the coin or
currency in which, any Note or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the Maturity thereof;

     (ii) reduce the percentage of the Outstanding Note Balance, the consent of whose
Noteholders is required for any such supplemental indenture, for any waiver of compliance
with provisions of this Indenture or Events of Default and their consequences, provided for
in this Indenture;

     (iii) modify any of the provisions of this Section 9.02 or Section 6.13 hereof except
to increase any percentage of Noteholders required for any modification or waiver or to
provide that certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holders of 100% of the then Outstanding Note Balance of each Class of
Notes affected thereby;

     (iv) modify or alter the provisions of the proviso to the definition of the term
“Outstanding”; or

     (v) permit the creation of any lien ranking prior to or on a parity with the lien of
this Indenture with respect to any part of the Trust Estate or terminate the lien of this
Indenture on any property at any time subject hereto or deprive any Noteholder of the
security afforded by the lien of this Indenture;

     provided, no such supplemental indenture may modify or change any terms whatsoever of the
Indenture that could be construed as increasing the Issuer’s or the Servicer’s discretion
hereunder; provided further, that no such supplemental indenture shall be entered into unless the

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Indenture Trustee shall have received written confirmation from the Rating Agency that such
supplemental indenture will not cause the Rating Agency to reduce, qualify or withdraw the then
current rating assigned to any Class of Notes.

          (b) The Indenture Trustee shall promptly deliver to each Noteholder and the Rating Agency a
copy of any supplemental indenture entered into pursuant to Section 9.02(a) hereof.

          Section 9.03 Execution of Supplemental Indentures.

          In executing, or accepting the additional trusts created by, any supplemental indenture (a)
pursuant to Section 9.01 hereof or (b) pursuant to Section 9.02 hereof without the consent of each
holder of the Notes to the execution of the same, or the modifications thereby of the trusts
created by this Indenture, the Indenture Trustee shall be entitled to receive, and (subject to
Section 7.01 hereof) shall be, fully protected in relying upon, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by this Indenture. The
Indenture Trustee may, but shall not be obligated to, enter into any supplemental indenture which
affects the Indenture Trustee’s own rights, duties, obligations, or immunities under this Indenture
or otherwise. Notwithstanding anything contained in this Section 9.03, the Indenture Trustee shall
not effect any amendment to the Indenture until it shall have received a certification from the
Administrator that there would not, as a result of such amendment, be a change in the treatment of
the Issuer as a “Qualified Special Purpose Entity” under Statement of Financial Accounting
Standards No. 140 (or any applicable successor Statement of Financial Accounting Standards).

          Section 9.04 Effect of Supplemental Indentures.

          Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Notes theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby.

          Section 9.05 Reference in Notes to Supplemental Indentures.

          Notes authenticated and delivered after the execution of any supplemental indenture pursuant
to this Article may, and shall if required by the Indenture Trustee, bear a notation in form
approved by the Indenture Trustee as to any matter provided for in such supplemental indenture.
New Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to
any such supplemental indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

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ARTICLE X

REDEMPTION OF NOTES

          Section 10.01 Optional Redemption; Election to Redeem. The Issuer will have the option
to redeem all, but not less than all of the Notes and thereby cause the early repayment of the
Notes on any Payment Date on or after the Optional Redemption Date.

          Section 10.02 Notice to Indenture Trustee. The Issuer shall give written notice of its
intention to redeem the Notes to the Indenture Trustee at least 30 days prior to the Redemption
Date (unless a shorter period shall be satisfactory to the Indenture Trustee).

          Section 10.03 Notice of Redemption by the Issuer. Notices of redemption shall be given
by first class mail, postage prepaid, mailed not less than 30 days prior to the Redemption Date, to
each Noteholder, at its address in the Note Register, and to the Rating Agency. All notices of
redemption shall state (a) the Redemption Date, (b) the Redemption Price, (c) that on the
Redemption Date, the Redemption Price will become due and payable upon each Note, and that interest
thereon shall cease to accrue if payment is made on the Redemption Date, and (d) the office of the
Indenture Trustee or other place where the Notes are to be surrendered for payment of the
Redemption Price. Failure to give notice of redemption, or any defect therein, to any Noteholder
shall not impair or affect the validity of the redemption of any other Note.

          Section 10.04 Deposit of Redemption Price. On or before the Business Day immediately
preceding the Redemption Date, the Issuer shall deposit with the Indenture Trustee an amount equal
to the Redemption Price (less any portion of such payment to be made from monies in the Collection
Account).

          Section 10.05 Notes Payable on Redemption Date. Notice of redemption having been given
as provided in Section 10.03 hereof and deposit of the Redemption Price with the Indenture Trustee
having been done as provided in Section 10.04 hereof, the Notes shall on the Redemption Date,
become due and payable at the Redemption Price and on such Redemption Date such Notes shall cease
to bear interest. The Noteholders shall be paid the Redemption Price by the Indenture Trustee on
behalf of the Issuer upon presentment and surrender of their Notes as provided in the notices of
redemption. If the Issuer shall have failed to deposit the Redemption Price with the Indenture
Trustee, the principal and interest with respect to each Class of Notes shall, until paid, bear
interest at their respective Note Rate. The failure to deposit the Redemption Price shall not
constitute an Event of Default hereunder.

ARTICLE XI

SATISFACTION AND DISCHARGE

          Section 11.01 Satisfaction and Discharge of Indenture.

          (a) This Indenture shall cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange of Notes herein expressly provided for), and the

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Indenture Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when:

     (i) either:

     (A)all Notes theretofore authenticated and delivered to Noteholders (other than (1)
Notes which have been destroyed, lost or stolen and which have been paid as provided in
Section 2.05 hereof and (2) 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, as provided in Section 8.03(c) hereof) have been delivered to
the Indenture Trustee for cancellation upon payment and discharge of the entire
indebtedness on such Notes; or

     (B) the final installments of principal on all such Notes not theretofore delivered to
the Indenture Trustee for cancellation (1) have become due and payable, or (2) will become
due and payable at their Stated Maturity, as applicable within one year, and the Issuer has
irrevocably deposited or caused to be deposited with the Indenture Trustee as trust funds
in trust for the purpose an amount sufficient to pay and discharge the entire indebtedness
on such Notes to the date of such deposit (in the case of Notes which have become due and
payable) or to the Stated Maturity thereof upon the delivery of such Notes to the Indenture
Trustee for cancellation; or

     (C) in the event of an Optional Redemption pursuant to Article X, the Issuer has
irrevocably deposited or caused to be deposited with the Indenture Trustee as trust funds
in trust for the purpose of early repayment of the Notes, an amount sufficient to pay and
discharge the entire indebtedness on such Notes upon the delivery of such Notes to the
Indenture Trustee for cancellation;

     (ii) the Issuer and the Servicer have paid or caused to be paid all other sums payable
hereunder by the Issuer and the Servicer to the Indenture Trustee for the benefit of the
Noteholders and the Indenture Trustee, including proceeds of the Timeshare Loans pursuant to
Sections 3.04 or 6.06 hereof;

     (iii) the funds held in trust by the Indenture Trustee pursuant to Sections 11.01(a)(i) and
(ii) hereof for the purpose of paying and discharging the entire indebtedness on the Notes have
been applied to such purpose and the rights of all of the Noteholders to receive payments from the
Issuer have terminated;

     (iv) following the completion of the actions provided in Sections 11.01(a)(i), (ii) and (iii)
hereof, the Indenture Trustee has delivered to the Issuer all cash, securities and other property
held by it as part of the Trust Estate; and

     (v) the Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

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          (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Issuer to the Indenture Trustee under Section 7.06 hereof and, if money shall have been deposited
with the Indenture Trustee pursuant to Section 11.01(a)(i) hereof, the obligations of the Indenture
Trustee under Section 11.02 hereof and Section 8.03(c) hereof shall survive.

          Section 11.02 Application of Trust Money.

          Subject to the provisions of Section 8.03(c) hereof, all money deposited with the Indenture
Trustee pursuant to Sections 11.01 and 8.03 hereof shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment to the Persons
entitled thereto, of the principal and interest for whose payment such money has been deposited
with the Indenture Trustee.

          Section 11.03 Trust Termination Date.

          The Trust Estate created by this Indenture shall be deemed to have terminated on the date that
the Indenture Trustee executes and delivers to the Issuer and the Owner Trustee an instrument
acknowledging satisfaction and discharge of the Indenture.

ARTICLE XII

REPRESENTATIONS AND WARRANTIES

          Section 12.01 Representations and Warranties of the Issuer.

          The Issuer represents and warrants to the Indenture Trustee, the Servicer and the Noteholders,
as of the Closing Date, as follows:

          (a) Organization and Good Standing. The Issuer has been duly formed and is validly
existing and in good standing under the laws of the State of Delaware, with power and authority to
own its properties and to conduct its business as such properties shall be currently owned and such
business is presently conducted and has the power and authority to own and convey all of its
properties and to execute and deliver this Indenture and the Transaction Documents and to perform
the transactions contemplated hereby and thereby.

          (b) Binding Obligation. This Indenture and the Transaction Documents to which it is a
party have each been duly executed and delivered on behalf of the Issuer and this Indenture and
each Transaction Document to which it is a party constitutes a legal, valid and binding obligation
of the Issuer enforceable in accordance with its terms except as may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting creditors’ rights and by general principles
of equity.

          (c) No Consents Required. No consent of, or other action by, and no notice to or
filing with, any Governmental Authority or any other party, is required for the due execution,
delivery and performance by the Issuer of this Indenture or any of the Transaction Documents or for
the perfection of or the exercise by the Indenture Trustee or the Noteholders of any of their
rights or remedies thereunder which have not been duly obtained.

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          (d) No Violation. The consummation of the transaction contemplated by this Indenture
and the fulfillment of the terms hereof shall not conflict with, result in any material breach of
any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a
default under, the certificate of trust, the trust agreement of the Issuer, or any indenture,
agreement or other instrument to which the Issuer is a party or by which it is bound; nor result in
the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement or other instrument (other than this Indenture).

          (e) No Proceedings. There is no pending or threatened action, suit or proceeding, nor
any injunction, writ, restraining order or other order of any nature against or affecting the
Issuer, its officers or directors, or the property of the Issuer, in any court or tribunal, or
before any arbitrator of any kind or before or by any Governmental Authority (i) asserting the
invalidity of this Indenture or any of the Transaction Documents, (ii) seeking to prevent the sale
and assignment of any Timeshare Loan or the consummation of any of the transactions contemplated
thereby, (iii) seeking any determination or ruling that might materially and adversely affect (A)
the performance by the Issuer of this Indenture or any of the Transaction Documents or the
interests of the Noteholders, (B) the validity or enforceability of this Indenture or any of the
Transaction Documents, (C) any Timeshare Loan, or (D) the Intended Tax Characterization, or (iv)
asserting a claim for payment of money adverse to the Issuer or the conduct of its business or
which is inconsistent with the due consummation of the transactions contemplated by this Indenture
or any of the Transaction Documents.

          (f) Issuer Not Insolvent. The Issuer is solvent and will not become insolvent after
giving effect to the transactions contemplated by this Indenture and each of the Transaction
Documents.

          (g) Notes Authorized, Executed, Authenticated, Validly Issued and Outstanding. The
Notes have been duly and validly authorized, and when duly and validly executed and authenticated
by the Indenture Trustee in accordance with the terms of this Indenture and delivered to and paid
for by each Holder as provided herein, will be validly issued and outstanding and entitled to the
benefits hereof.

          (h) Location of Chief Executive Office and Records. The principal place of business
and chief executive office of the Issuer, and the office where the Issuer maintains all of its
records is located at 10600 West Charleston Boulevard, Las Vegas, Nevada 89135.

          (i) Enforceability of Transaction Documents. Each of the Transaction Documents to
which it is a party has been duly authorized, executed and delivered by the Issuer and constitutes
the legal, valid and binding obligations of the Issuer, enforceable against it in accordance with
its terms.

          (j) Accuracy of Information. The representations and warranties of the Issuer in the
Transaction Documents are true and correct in all material respects as of the Closing Date and,
except for representations and warranties expressly made as of a different date, each Substitution
Date.

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          (k) Special Purpose. The Issuer shall engage in no business, and take no actions with
respect to any other transaction than the transactions contemplated by the Transaction Documents
and will otherwise maintain its existence separate from the Seller and all other entities as
provided in its organizational documents.

          (l) Securities Laws. The Issuer is not an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.

          (m) Representations and Warranties Regarding Security Interest and Loan
Files.

     (i) Payment of principal and interest on the Notes and the prompt observance and
performance by the Issuer of all terms and provisions of this Indenture are secured by the
Trust Estate. Upon the issuance of the Notes and at all times thereafter, so long as any
Notes are outstanding, this Indenture creates a valid and continuing security interest (as
defined in the applicable UCC) in the Trust Estate in favor of the Indenture Trustee, which
security interest is prior to all other Liens, and is enforceable as such against creditors
of the purchasers from the Issuer.

     (ii) The Timeshare Loans and the documents evidencing such Timeshare Loans constitute
either “accounts”, “chattel paper”, “instruments” or “general intangibles” within the
meaning of the applicable UCC.

     (iii) The Issuer owns and has good and marketable title to the Trust Estate free and
clear of any Lien, claim or encumbrance of any Person.

     (iv) The Issuer has caused or will have caused, within ten days of the Closing Date,
the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the security interest in
the Trust Estate granted to the Indenture Trustee hereunder.

     (v) All original executed copies of each Obligor Note that constitute or evidence the
Trust Estate have been delivered to the Custodian and the Issuer has received a Trust
Receipt therefore, which acknowledges that the Custodian is holding the Obligor Notes that
constitute or evidence the Trust Estate solely on behalf and for the benefit of the
Indenture Trustee.

     (vi) Other than the security interest granted to the Indenture Trustee pursuant to
this Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in,
or otherwise conveyed any of the Trust Estate. The Issuer has not authorized the filing of
and is not aware of any financing statements against the Issuer that include a description
of collateral covering the Trust Estate other than any financing statement relating to the
security interest granted to the Indenture Trustee hereunder or that has been terminated.

     (vii) All financing statements filed or to be filed against the Issuer in favor of the
Indenture Trustee in connection herewith describing the Trust Estate contain a statement to
the following effect: “A purchase of or security interest in any collateral described in
this financing statement will not violate the rights of the Secured Party.”

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     (viii) None of the Obligor Notes that constitute or evidence the Trust Estate has any
marks or notations indicating that they have been pledged, assigned or otherwise conveyed
to any Person other than the Indenture Trustee.

          The foregoing representations and warranties in Section 12.01(m)(i) — (viii) shall remain in
full force and effect and shall not be waived or amended until the Notes are paid in full or
otherwise release or discharged.

          Section 12.02 Representations and Warranties of the Initial Servicer.

          The initial Servicer hereby represents and warrants as of the Closing Date, the following:

     (a) Organization and Authority. The Servicer:

     (i) is a corporation duly organized, validly existing and in good standing under the
laws of the State of Nevada;

     (ii) has all requisite power and authority to own and operate its properties and to
conduct its business as currently conducted and as proposed to be conducted as contemplated
by the Transaction Documents to which it is a party, to enter into the Transaction
Documents to which it is a party and to perform its obligations under the Transaction
Documents to which it is a party; and

     (iii) has made all filings and holds all material franchises, licenses, permits and
registrations which are required under the laws of each jurisdiction in which the
properties owned (or held under lease) by it or the nature of its activities makes such
filings, franchises, licenses, permits or registrations necessary.

          (b) Place of Business. The address of the principal place of business and chief
executive office of the Servicer is 10600 West Charleston Boulevard, Las Vegas, Nevada 89135 and
there have been no other such locations during the immediately preceding four months.

          (c) Compliance with Other Instruments, etc. The Servicer is not in violation of any
term of its certificate of incorporation and by-laws. The execution, delivery and performance by
the Servicer of the Transaction Documents to which it is a party do not and will not (i) conflict
with or violate the certificate of incorporation or bylaws of the Servicer, (ii) conflict with or
result in a breach of any of the terms, conditions or provisions of, or constitute a default under,
or result in the creation of any Lien on any of the properties or assets of the Servicer pursuant
to the terms of any instrument or agreement to which the Servicer is a party or by which it is
bound, or (iii) require any consent of or other action by any trustee or any creditor of, any
lessor to or any investor in the Servicer.

          (d) Compliance with Law. The Servicer is in compliance with all statutes, laws and
ordinances and all governmental rules and regulations to which it is subject, the violation of
which, either individually or in the aggregate, could materially adversely affect its business,
earnings, properties or condition (financial or other). The policies and procedures set forth in
the Credit and Collection Policies on the Closing Date are in material compliance with all
applicable

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statutes, laws and ordinances and all governmental rules and regulations. The execution, delivery
and performance of the Transaction Documents to which it is a party do not and will not cause the
Servicer to be in violation of any law or ordinance, or any order, rule or regulation, of any
federal, state, municipal or other governmental or public authority or agency.

          (e) Pending Litigation or Other Proceedings. There is no pending or, to the best of
the Servicer’s knowledge, threatened action, suit, proceeding or investigation before any court,
administrative agency, arbitrator or governmental body against or affecting the Servicer which, if
decided adversely, would materially and adversely affect (i) the condition (financial or
otherwise), business or operations of the Servicer, (ii) the ability of the Servicer to perform its
obligations under, or the validity or enforceability of this Indenture or any other documents or
transactions contemplated under this Indenture, (iii) any property or title of any Obligor to any
Timeshare Property or (iv) the Indenture Trustee’s ability to foreclose or otherwise enforce the
Liens of the Timeshare Loans.

          (f) Taxes. It has timely filed all tax returns (federal, state and local) which are
required to be filed and has paid all taxes related thereto, other than those which are being
contested in good faith.

          (g) Transactions in Ordinary Course. The transactions contemplated by this Indenture
are in the ordinary course of business of the Servicer.

          (h) Securities Laws. The Servicer is not an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.

          (i) Proceedings. The Servicer has taken all action necessary to authorize the
execution and delivery by it of the Transaction Documents to which it is a party and the
performance of all obligations to be performed by it under the Transaction Documents.

          (j) Defaults. The Servicer is not in default under any material agreement, contract,
instrument or indenture to which it is a party or by which it or its properties is or are bound, or
with respect to any order of any court, administrative agency, arbitrator or governmental body
which would have a material adverse effect on the transactions contemplated hereunder; and to the
Servicer’s knowledge, as applicable, no event has occurred which with notice or lapse of time or
both would constitute such a default with respect to any such agreement, contract, instrument or
indenture, or with respect to any such order of any court, administrative agency, arbitrator or
governmental body.

          (k) Insolvency. The Servicer is solvent. Prior to the date hereof, the Servicer did
not, and is not about to, engage in any business or transaction for which any property remaining
with the Servicer would constitute an unreasonably small amount of capital. In addition, the
Servicer has not incurred debts that would be beyond the Servicer’s ability to pay as such debts
matured.

          (l) No Consents. No prior consent, approval or authorization of, registration,
qualification, designation, declaration or filing with, or notice to any federal, state or local
governmental or public authority or agency, is, was or will be required for the valid execution,

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delivery and performance by the Servicer of the Transaction Documents to which it is a party. The
Servicer has obtained all consents, approvals or authorizations of, made all declarations or
filings with, or given all notices to, all federal, state or local governmental or public
authorities or agencies which are necessary for the continued conduct by the Servicer of its
respective businesses as now conducted, other than such consents, approvals, authorizations,
declarations, filings and notices which, neither individually nor in the aggregate, materially and
adversely affect, or in the future will materially and adversely affect, the business, earnings,
prospects, properties or condition (financial or other) of the Servicer.

          (m) Name. The legal name of the Servicer is as set forth in the signature page of this
Indenture and the Servicer does not have any tradenames, fictitious names, assumed names or “doing
business as” names.

          (n) Information. No document, certificate or report furnished by the Servicer, in
writing, pursuant to this Indenture or in connection with the transactions contemplated hereby,
contains or will contain when furnished any untrue statement of a material fact or fails or will
fail to state a material fact necessary in order to make the statements contained therein, in light
of the circumstances under which they were made, not misleading. There are no facts relating to the
Servicer as of the Closing Date which when taken as a whole, materially adversely affect the
financial condition or assets or business of the Servicer, or which may impair the ability of the
Servicer to perform its obligations under this Indenture, which have not been disclosed herein or
in the certificates and other documents furnished by or on behalf of the Servicer pursuant hereto
or thereto specifically for use in connection with the transactions contemplated hereby or thereby.

          Section 12.03 Representations and Warranties of the Indenture Trustee and the Back-Up
Servicer.

          The Indenture Trustee and the Back-Up Servicer hereby represent and warrant as of the Closing
Date, the following:

          (a) The Indenture Trustee and the Back-Up Servicer is each a national banking association duly
organized, validly existing and in good standing under the laws of the United States.

          (b) The execution and delivery of this Indenture and the other Transaction Documents to which
the Indenture Trustee or the Back-Up Servicer is a party, and the performance and compliance with
the terms of this Indenture and the other Transaction Documents to which the Indenture Trustee or
the Back-Up Servicer is a party by the Indenture Trustee or the Back-Up Servicer, as applicable,
will not violate the Indenture Trustee’s or the Back-Up Servicer’s organizational documents or
constitute a default (or an event which, with notice or lapse of time, or both, would constitute a
default) under, or result in a breach of, any material agreement or other material instrument to
which it is a party or by which it is bound.

          (c) Except to the extent that the laws of certain jurisdictions in which any part of the Trust
Estate may be located require that a co-trustee or separate trustee be appointed to act with
respect to such property as contemplated herein, the Indenture Trustee has the full power

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and authority to carry on its business as now being conducted and to enter into and consummate all
transactions contemplated by this Indenture and the other Transaction Documents, has duly
authorized the execution, delivery and performance of this Indenture and the other Transaction
Documents to which it is a party, and has duly executed and delivered this Indenture and the other
Transaction Documents to which it is a party.

          (d) The Back-Up Servicer has the full power and authority to carry on its business as now
being conducted and to enter into and consummate all transactions contemplated by this Indenture
and the other Transaction Documents, has duly authorized the execution, delivery and performance of
this Indenture and the other Transaction Documents to which it is a party, and has duly executed
and delivered this Indenture and the other Transaction Documents to which it is a party.

          (e) This Indenture, assuming due authorization, execution and delivery by the other parties
hereto, constitutes a valid and binding obligation of each of the Indenture Trustee and the Back-Up
Servicer, enforceable against the Indenture Trustee and the Back-Up Servicer in accordance with the
terms hereof, subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium and
other laws affecting the enforcement of creditors’ rights generally and the rights of creditors of
banks, and (ii) general principles of equity, regardless of whether such enforcement is considered
in a proceeding in equity or at law.

          (f) Neither the Indenture Trustee nor the Back-Up Servicer is in violation of, and its
execution and delivery of this Indenture and the other Transaction Documents to which it is a party
and its performance and compliance with the terms of this Indenture and the other Transaction
Documents to which it is a party will not constitute a violation of, any law, any order or decree
of any court or arbiter, or any order, regulation or demand of any federal, state or local
governmental or regulatory authority, which violation, in the
Indenture Trustee’s and the Back-Up
Servicer’s good faith and reasonable judgment, is likely to affect materially and adversely the
ability of the Indenture Trustee or the Back-Up Servicer, as applicable, to perform its obligations
under any Transaction Document to which it is a party.

          (g) No litigation is pending or, to the best of the Indenture Trustee’s and the Back-Up
Servicer’s knowledge, threatened against the Indenture Trustee or the Back-Up Servicer that, if
determined adversely to the Indenture Trustee or the Back-Up Servicer, would prohibit the Indenture
Trustee or the Back-Up Servicer, as applicable, from entering into any Transaction Document to
which it is a party or, in the Indenture Trustee’s and the Back-Up Servicer’s good faith and
reasonable judgment, is likely to materially and adversely affect the ability of the Indenture
Trustee or the Back-Up Servicer to perform its obligations under any Transaction Document to which
it is a party.

          (h) Any consent, approval, authorization or order of any court or governmental agency or body
required for the execution, delivery and performance by the Indenture Trustee or the Back-Up
Servicer of or compliance by the Indenture Trustee or the Back-Up Servicer with the Transaction
Documents to which it is a party or the consummation of the transactions contemplated by the
Transaction Documents has been obtained and is effective.

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          Section 12.04 Multiple Roles.

          The parties expressly acknowledge and consent to Wells Fargo Bank, National Association,
acting in the multiple roles of the Indenture Trustee, the Custodian, the Back-Up Servicer and the
Successor Servicer. Wells Fargo Bank, National Association may, in such capacities, discharge its
separate functions fully, without hindrance or regard to conflict of interest principles, duty of
loyalty principles or other breach of fiduciary duties to the extent that any such conflict or
breach arises from the performance by Wells Fargo Bank, National Association of express duties set
forth in this Indenture in any of such capacities, all of which defenses, claims or assertions are
hereby expressly waived by the other parties hereto except in the case of negligence (other than
errors in judgment) and willful misconduct by Wells Fargo Bank, National Association.

ARTICLE XIII

MISCELLANEOUS

          Section 13.01 Officer’s Certificate and Opinion of Counsel as to Conditions Precedent.

          Upon any request or application by the Issuer to the Indenture Trustee to take any action
under this Indenture, the Issuer shall furnish to the Indenture Trustee:

          (a) an Officer’s Certificate (which shall include the statements set forth in Section 12.03
hereof) stating that all conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

          (b) an Opinion of Counsel (which shall include the statements set forth in Section 12.03
hereof) stating that, in the opinion of such counsel, all such conditions precedent and covenants
have been complied with.

          Section 13.02 Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

          (a) a statement that the Person 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 Person, 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 Person, such condition or
covenant has been complied with.

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          Section 13.03 Notices. (a) All communications, instructions, directions and notices
to the parties thereto shall be (i) in writing (which may be by facsimile transmission (or if
permitted hereunder, via electronic mail), followed by delivery of original documentation within
one Business Day), (ii) effective when received and (iii) delivered or mailed first class mail,
postage prepaid to it at the following address:

If to the Issuer:

Diamond Resorts Owner Trust 2009-1

c/o U.S Bank Trust National Association

300 Delaware Avenue, 9th Floor

Wilmington, Delaware 19801

Facsimile Number: (302) 576-3717

Telephone Number: (302) 576-3700

With a copy to:

Diamond Resorts International

10600 West Charleston Boulevard

Las Vegas, Nevada 89135

Attention: General Counsel

If to the Servicer:

Diamond Resorts Financial Services, Inc.

10600 West Charleston Boulevard
 Las Vegas, Nevada 89135
 Attention: David Womer

With a copy to:

Diamond Resorts Corporation

10600 West Charleston Boulevard

Las Vegas, Nevada 89135

Attention: General Counsel

If to the Indenture Trustee:

Wells Fargo Bank, National Association

MAC N9311-161

Sixth Street & Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust

                  Services/Asset-Backed Administration

Facsimile Number: (612) 667-3539

Telephone Number: (612) 667-8058

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If to the Rating Agency:

Standard and Poor’s Ratings Services,

a Standard & Poor’s Financial Services LLC business

55 Water Street, 41st Floor

New York, New York 10041-0003

Attention: Structured Credit Surveillance

Email: servicer_reports@standardandpoors.com

or at such other address as the party may designate by notice to the other parties hereto, which
shall be effective when received.

          (b) All communications and notices pursuant hereto to a Noteholder shall be in writing and
delivered or mailed first class mail, postage prepaid or overnight courier at the address shown in
the Note Register. The Indenture Trustee agrees to deliver or mail to each Noteholder upon
receipt, all notices and reports that the Indenture Trustee may receive hereunder and under any
Transaction Documents. Unless otherwise provided herein, the Indenture Trustee may consent to any
requests received under such documents or, at its option, follow the directions of Holders
representing at least 66-2/3% of the then Outstanding Note Balance of each Class of Notes within 30
days after prior written notice to the Noteholders. All notices to Noteholders (or any Class
thereof) shall be sent simultaneously. Expenses for such communications and notices shall be borne
by the Servicer.

          Section 13.04 No Proceedings.

          The Noteholders, the Servicer and the Indenture Trustee each hereby agrees that it will not,
directly or indirectly institute, or cause to be instituted, against the Issuer or the Trust Estate
any proceeding of the type referred to in Section 6.01(e) hereof so long as there shall not have
elapsed one year plus one day since the last maturity of the Notes.

          Section 13.05 Limitation of Liability.

          (a) It is expressly understood and agreed by the parties hereto that (a) this Indenture is
executed and delivered by U.S. Bank Trust National Association, not individually or personally but
solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and
vested in it, (b) each of the representations, undertakings and agreements herein made on the part
of the Issuer is made and intended not as personal representations, undertakings and agreements by
U.S. Bank Trust National Association but is made and intended for the purpose of binding only the
Issuer, (c) nothing herein contained shall be construed as creating any liability on U.S. Bank
Trust National Association, individually or personally, to perform any covenant either expressed or
implied contained herein, all such liability, if any, being expressly waived by the parties hereto
and by any Person claiming by, through or under the parties hereto and (d) under no circumstances
shall U.S. Bank Trust National Association be personally liable for the payment of any indebtedness
or expenses of the Issuer or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Issuer under this Indenture or any other related
document.

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          (b) It is expressly understood and agreed by the parties hereto that DRFS is executing this
Indenture solely as Servicer and DRFS undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture applicable to the Servicer.

          Section 13.06 Binding Nature of Indenture; Assignment.

          This Indenture shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

          Section 13.07 Entire Agreement.

          This Indenture contains the entire agreement and understanding among the parties hereto with
respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or written, of any nature
whatsoever with respect to the subject matter hereof. The express terms hereof control and
supersede any course of performance and/or usage of the trade inconsistent with any of the terms
hereof.

          Section 13.08 Severability of Provisions.

          If any one or more of the covenants, agreements, provisions or terms of this Indenture shall
be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms
shall be deemed severable from the remaining covenants, agreements, provisions or terms of this
Indenture and shall in no way affect the validity or enforceability of the other provisions of this
Indenture or of the Notes or the rights of the Holders thereof.

          Section 13.09 Indulgences; No Waivers.

          Neither the failure nor any delay on the part of a party to exercise any right, remedy, power
or privilege under this Indenture shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, remedy, power or privilege preclude any other or further exercise of
the same or of any other right, remedy, power or privilege, nor shall any waiver of any right,
remedy, power or privilege with respect to any occurrence be construed as a waiver of such right,
remedy, power or privilege with respect to any other occurrence. No waiver shall be effective
unless it is in writing and is signed by the party asserted to have granted such waiver.

[Signature pages to follow]

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

	 	 	 	 	 	 	 	 	 

	 	 	DIAMOND RESORTS OWNER TRUST 2009-1,
 as Issuer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	U.S. BANK TRUST NATIONAL ASSOCIATION,	 	 
	 	 	 	 	not in its individual capacity but solely as Owner Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Diane L. Reynolds
 

Name: Diane L. Reynolds
	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DIAMOND RESORTS FINANCIAL SERVICES, INC.
 as Servicer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ David F. Palmer	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: David F. Palmer	 	 
	 	 	 	 	Title: Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as Indenture
Trustee and Back-Up Servicer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Joe Nardi	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Joe Nardi	 	 
	 	 	 	 	Title: Vice President	 	 

Signature Page, Indentureexv10w5

Exhibit 10.5

DIAMOND RESORTS OWNER TRUST 2009-1

TIMESHARE LOAN BACKED NOTES, SERIES 2009-1

	 	 	 	 	 	 	 	 	 

	 	$169,200,000	 	 	 	9.31	%	 	Timeshare Loan Backed Notes Series 2009-1, Class A
	 	$12,800,000	 	 	 	12.00	%	 	Timeshare Loan Backed Notes Series 2009-1, Class B

NOTE PURCHASE AGREEMENT

October 9, 2009

CREDIT SUISSE SECURITIES (USA) LLC 

Eleven Madison Avenue, 4th Floor

New York, New York 10010-3629

Ladies and Gentlemen:

          Section 1. Introductory. Diamond Resorts Owner Trust 2009-1 (the “Issuer”), a
Delaware statutory trust, proposes, subject to the terms and conditions stated herein, to sell to
Credit Suisse Securities (USA) LLC (the “Initial Purchaser”) the Timeshare Loan Backed Notes,
Series 2009-1, Class A and Class B (collectively, the “Notes”) in the Initial Note Balances set
forth in Exhibit A attached hereto. The Notes are to be issued under an indenture, dated
as of October 1, 2009 (the “Indenture”), by and among the Issuer, Diamond Resorts Financial
Services, Inc., a Nevada corporation, as servicer (the “Servicer”) and Wells Fargo Bank, National
Association, a national banking association, as indenture trustee (the “Indenture Trustee”). The
Securities Act of 1933, as amended, is herein referred to as the “Securities Act”. Capitalized
terms used herein but not otherwise defined shall have the meanings set forth in the Indenture.

          Section 2. Representations and Warranties of the Issuer and DRC. Each of the Issuer
and Diamond Resorts Corporation (“DRC”) jointly and severally represent and warrant to the Initial
Purchaser, as of the Closing Date, that:

          (a) A preliminary offering circular and an offering circular relating to the Notes to
be offered by the Initial Purchaser have been prepared by the Issuer. The preliminary
offering circular, dated September 24, 2009 (the “September Preliminary Offering
Circular”), the preliminary offering circular, dated October 9, 2009 (the “October
Preliminary Offering Circular”, together with the September Preliminary Offering Circular,
the “Preliminary Offering Circular”), the final offering circular, dated October 9, 2009
that includes the offering price and other final terms of the Notes (the “Offering
Circular”) and any General Use Issuer Free Writing Communication (each, as amended or
supplemented by additional information) are collectively referred to as the “Offering
Document”. The Offering Document at a particular time means the

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Offering Document in the form actually amended or supplemented and issued at such time.

As of the date of this Agreement, the Offering Document and any Limited Use Issuer Free Writing
Communication does not and as of the Closing Date will not include any untrue statement of a
material fact or omit to state any 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. The preceding sentence does not apply to statements in or omissions from the
Offering Document or any Limited Use Issuer Free Writing Communication based upon written
information furnished to the Issuer or DRC by the Initial Purchaser specifically for use therein,
it being understood and agreed that the only such information is that described as such in Section
7(b) hereof.

“Free Writing Communication” means a written communication (as such term is defined in Rule 405
under the Securities Act) that constitutes an offer to sell or a solicitation of an offer to buy
the Notes and is made by means other than the Preliminary Offering Circular or the Offering
Circular. “Issuer Free Writing Communication” means a Free Writing Communication prepared by or on
behalf of the Issuer or DRC or used or referred to by the Issuer or DRC, in the form retained in
the records of the Issuer or DRC, provided, however, with respect to any cash flow models
provided to investors by the Initial Purchaser, “Issuer Free Writing Communication” shall only
refer to the collateral data and other statistical information to be used in such cash flow
models. “General Use Issuer Free Writing Communication” means any Issuer Free Writing
Communication that is intended for general distribution to prospective investors, as evidenced by
its being specified in Exhibit B to this Agreement. “Limited Use Issuer Free Writing
Communication” means any Issuer Free Writing Communication that is not a General Use Issuer Free
Writing Communication.

          (b) The Issuer is a statutory trust duly formed, validly existing and in good standing under
the laws of the State of Delaware, with power and authority (corporate and other) to own its
properties and conduct its business as described in the Offering Document and to execute, deliver
and perform its obligations under each of the Transaction Documents and each other agreement or
instrument completed thereby to which it is or will be a party; and the Issuer is duly qualified to
do business as a foreign entity in good standing in all other jurisdictions in which its ownership
or lease of property or the conduct of its business requires such qualification.

          (c) DRC is a corporation duly formed, validly existing and in good standing under the laws of
the State of Maryland, with power and authority (corporate and other) to own its properties and
conduct its business as described in the Offering Document and to execute, deliver and perform its
obligations under each of the Transaction Documents and each other agreement or instrument
completed thereby to which it is or will be a party; and DRC is duly qualified to do business as a
foreign corporation in good standing in all other jurisdictions in which its ownership or lease of
property or the conduct of its business requires such qualification.

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          (d) Neither DRC nor any of its Affiliates is engaged in any business other than the
acquisition, marketing, sale, development, management, rental and operation of timeshare resorts
and other timeshare activities, the provision of financing for the purchase of timeshare properties
and other leisure activities (exclusive of gaming) and activities directly related to or otherwise
supporting any of the foregoing.

          (e) The Indenture has been duly authorized and on the Closing Date, the Indenture will have
been duly executed and delivered, will conform to the description thereof contained in the Offering
Document and will constitute a valid and legally binding obligation of the Issuer, enforceable in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights and
to general equity principles.

          (f) The Notes have been duly authorized; and when the Notes are delivered and paid for
pursuant to this Agreement on the Closing Date, such Notes will have been duly executed,
authenticated, issued and delivered and will conform to the description thereof contained in the
Offering Document; will constitute valid and legally binding obligations of the Issuer, enforceable
against the Issuer in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles; and will be entitled to the benefits
of the Indenture.

          (g) No consent, approval, authorization, or order of, or filing with, any governmental agency
or body or any court is required for the consummation of the transactions contemplated by the
Transaction Documents and in connection with the issuance and sale of the Notes by the Issuer.

          (h) The execution, delivery and performance of each of the Transaction Documents and the
issuance and sale of the Notes and compliance with the terms and provisions thereof will not result
in a breach or violation of any of the terms and provisions of, constitute a default under or
conflict with, (i) any statute, any rule, regulation or order of any governmental agency or body or
any court, domestic or foreign, having jurisdiction over the Issuer, DRC, the Seller or the
Transferors, or any of their properties, (ii) any agreement or instrument to which the Issuer, DRC,
the Seller or the Transferors is a party or by which the Issuer, DRC, the Seller or the Transferors
is bound or to which any of the properties of the Issuer, DRC, the Seller or the Transferors is
subject, or (iii) the organizational documents of the Issuer, DRC, the Seller or the Transferors;
and the Issuer has full power and authority to sell the Notes as contemplated by this Agreement.

          (i) This Agreement and each other Transaction Document to which the Issuer is a party have
each been duly authorized, executed and delivered by the Issuer and constitute a legal, valid and
binding obligation of the Issuer enforceable against the Issuer in accordance with its terms. This
Agreement and the other Transaction Documents to which DRC is a party have each been duly
authorized, executed and

3

 

delivered by DRC and constitute a legal, valid and binding obligation of DRC enforceable against
DRC in accordance with its terms.

          (j) The Issuer has good and marketable title to all real properties and all other properties
and assets owned by it, in each case free from liens, encumbrances and defects that would
materially affect the value thereof or materially interfere with the use made or to be made
thereof by it.

          (k) Each of the Issuer and DRC possesses all material certificates, authorities or permits
issued by appropriate governmental agencies or bodies necessary to conduct the business now
operated by it and has not received any notice of proceedings relating to the revocation or
modification of any such certificate, authority or permit that, if determined adversely to the
Issuer or DRC, would be likely individually or in the aggregate to produce a material adverse
effect on the condition (financial or other), assets, business, properties or results of
operations or prospects of the Issuer, whether or not in the ordinary course of business
(“Material Adverse Effect”).

          (l) Except as disclosed in the Offering Document, there are no pending actions, suits or
proceedings against or affecting DRC or the Issuer or any of their respective properties that, if
determined adversely to the Issuer or DRC, would individually or in the aggregate have a Material
Adverse Effect, or would materially and adversely affect the ability of the Issuer or DRC to
perform its obligations under any of the Transaction Documents, or which are otherwise material in
the context of the sale of the Notes; and no such actions, suits or proceedings are threatened or,
to the Issuer’s knowledge, contemplated.

          (m) The Issuer is not an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under Section 8 of the United States
Investment Company Act of 1940, as amended (the “Investment Company Act”); and the Issuer is not
and, after giving effect to the offering and sale of the Notes and the application of the proceeds
thereof as described in the Offering Document, will not be an “investment company” as defined in
the Investment Company Act (including an “excepted investment company”).

          (n) No securities of the same class (within the meaning of Rule 144A(d)(3) under the
Securities Act) as the Notes are listed on any national securities exchange registered under
Section 6 of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”).

          (o) The offer and sale of the Notes to the Initial Purchaser in the manner contemplated by
this Agreement will be exempt from the registration requirements of the Securities Act by reason
of Section 4(2) thereof and it is not necessary to qualify an indenture in respect of the Notes.
The Indenture is not required to be qualified under the Trust Indenture Act of 1939, as amended
(the “Trust Indenture Act”).

4

 

          (p) The Issuer has not entered and will not enter into any contractual arrangement with
respect to the distribution of the Notes except for this Agreement.

          (q) Upon execution and delivery of the Sale Agreement, the Issuer will have acquired all of
the Seller’s right, title and interest in and to the Timeshare Loans free and clear of all Liens.

          (r) Upon the execution and delivery of the Sale Agreement, the Issuer will have the power and
authority to pledge the Timeshare Loans to the Indenture Trustee on behalf of the Noteholders.

          (s) Each of the representations and warranties of the Issuer and DRC set forth in each of the
Transaction Documents to which they are parties is true and correct in all material respects.

          (t) Any taxes, fees and other governmental charges in connection with the execution and
delivery of the Transaction Documents or the execution, delivery and sale of the Notes have been
or will be paid prior to the Closing Date.

          (u) Since the respective dates as of which information is given in the Offering Document (x)
there has not been any change in or affecting the general affairs, business, management, financial
condition, stockholders’ equity, results of operations or regulatory situation of DRC that would
or might result in a Material Adverse Effect, (y) DRC has not entered into any transaction or
agreement (whether or not in the ordinary course of business) material to DRC that, in either
case, would reasonably be expected to materially adversely affect the interests of the holders of
the Notes, otherwise than as set forth or contemplated in the Offering Document and (z) it is not
in default under any agreement or instrument to which it is a party or by which it is bound which
would individually or in the aggregate have a Material Adverse Effect.

          (v) Immediately after the consummation of the transactions to occur on the Closing Date, (i)
the fair value of the assets of DRC, at a fair valuation, will exceed its debts and liabilities,
subordinated, contingent or otherwise; (ii) the present fair saleable value of the property of DRC
will be greater than the amount that will be required to pay the probable liability of its debts
and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities
become absolute and matured; (iii) DRC will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured;
and (iv) DRC will not have unreasonably small capital with which to conduct the business in which
it is engaged as such business is now conducted and is proposed to be conducted following the
Closing Date.

          (w) Each of DRC and its Affiliates owns or licenses or otherwise has the right to use all
licenses, permits, trademarks, trademark applications, patents, patent applications, service marks,
tradenames, copyrights, copyright applications, franchises, authorizations and other intellectual
property rights that are necessary for the operation of its businesses, without infringement upon
or conflict with the rights of any other Person

5

 

with respect thereto, except for such infringements and conflicts which, individually or in the
aggregate, are not reasonably likely to have a Material Adverse Effect.

          Section 3. Purchase, Sale and Delivery of Notes.

          (a) On the basis of the representations, warranties and agreements herein contained, but
subject to the terms and conditions set forth herein, the Issuer agrees to sell to the Initial
Purchaser and the Initial Purchaser agrees to purchase from the Issuer the Notes at the respective
purchase prices and the Initial Note Balances set forth in Exhibit A attached hereto.

          (b) The Issuer will deliver against payment of the purchase price the Notes to be offered and
sold by the Initial Purchaser in reliance on Regulation S (the “Regulation S Notes”) in the form of
one or more temporary global notes in registered form without interest coupons (the “Regulation S
Global Notes”) which will be deposited with the Indenture Trustee, in its capacity as custodian,
for The Depository Trust Company (“DTC”) for the respective accounts of the DTC participants for
the Euroclear System (“Euroclear”), and Clearstream Banking, société anonyme
(“Clearstream”) and registered in the name of Cede & Co., as nominee for DTC. The Issuer will
deliver against payment of the purchase price the Notes to be purchased by the Initial Purchaser
hereunder and to be offered and sold by the Initial Purchaser in reliance on Rule 144A under the
Securities Act (the “144A Notes”) in the form of one permanent global security in definitive form
without interest coupons (the “Rule 144A Global Notes”) deposited with the Indenture Trustee, in
its capacity as custodian, for DTC and registered in the name of Cede & Co., as nominee for DTC.
The Regulation S Global Notes and the Rule 144A Global Notes shall be assigned separate CUSIP
numbers. The Rule 144A Global Notes shall include the legend regarding restrictions on transfer set
forth under “TRANSFER RESTRICTIONS” in the Offering Document. Until the termination of the
Restricted Period with respect to the offering of the Notes, interests in the Regulation S Global
Notes may only be held by the DTC participants for Euroclear and Clearstream. Interests in any
permanent global notes will be held only in book-entry form through Euroclear, Clearstream or DTC,
as the case may be, except in the limited circumstances permitted by the Indenture.

          (c) Payment for the Notes shall be made by the Initial Purchaser in Federal (same day) funds
by wire transfer to an account at a bank acceptable to the Initial Purchaser and designated by the
Issuer on October 15, 2009 (or, at such time not later than seven full Business Days thereafter as
the Initial Purchaser and the Issuer determine, the “Closing Date”) against delivery to the
Indenture Trustee, in its capacity as custodian, for DTC of (i) the Regulation S Global Notes
representing all of the Regulation S Notes for the respective accounts of the DTC participants for
Euroclear and Clearstream and (ii) the Rule 144A Global Notes representing all of the 144A Notes.
The Regulation S Global Notes and the Rule 144A Global Notes will be made available for inspection
at the New York office of Baker & McKenzie LLP at least 24 hours prior to the Closing Date.

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          Section 4. Representations of the Initial Purchaser; Resales.

          (a) The Initial Purchaser represents and warrants that it is an “accredited investor”
within the meaning of Regulation D under the Securities Act.

          (b) The Initial Purchaser acknowledges and agrees that the Notes have not been registered
under the Securities Act and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons except in accordance with Regulation S or pursuant to an
exemption from the registration requirements of the Securities Act. The Initial Purchaser
represents and agrees that it has offered and sold the Notes, and will offer and sell the Notes (i)
as part of its distribution at any time and (ii) otherwise until 40 days after the later of the
commencement of the offering and the Closing Date, only in accordance with Rule 903 or Rule 144A.
Accordingly, none of the Initial Purchaser or its affiliates, or any persons acting on its behalf,
have engaged or will engage in any directed selling efforts (within the meaning of Regulation S)
with respect to the Notes, and the Initial Purchaser, its affiliates and all persons acting on its
behalf has complied and will comply with the offering restrictions requirement of Regulation S. The
Initial Purchaser severally agrees that at or prior to confirmation of sale of the Notes, other
than a sale pursuant to Rule 144A, the Initial Purchaser will have sent to each distributor, dealer
or person receiving a selling concession, fee or other remuneration that purchases the Notes from
it during the Restricted Period a confirmation or notice to substantially the following effect:

     “The Securities covered hereby have not been registered under the
U.S. Securities Act of 1933 (the “Securities Act”) and may not be offered
or sold within the United States or to, or for the account or benefit of,
U.S. persons (i) as part of their distribution at any time or (ii)
otherwise until 40 days after the later of the date of the commencement of
the offering and the closing date, except in either case in accordance
with Regulation S (or Rule 144A if available) under the Securities Act.
Terms used above have the meanings given to them by Regulation S.”

Terms used in this subsection (b) shall have the meanings given to them in Regulation S.

          (c) The Initial Purchaser agrees that it and each of its affiliates will not offer or sell the
Notes in the United States by means of any form of general solicitation or general advertising
within the meaning of Rule 502(c) under the Securities Act, including, but not limited to (i) any
advertisement, article, notice or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio, or (ii) any seminar or meeting whose attendees
have been invited by any general solicitation or general advertising. The Initial Purchaser
agrees, with respect to resales made in reliance on Rule 144A of any of the Notes, to deliver
either with the confirmation of such resale or otherwise prior to settlement of such resale a
notice to the effect that the resale of such Notes has been made in reliance upon the exemption
from the registration requirements of the Securities Act provided by Rule 144A.

7

 

          (d) The Initial Purchaser represents and agrees that (i) it has only communicated or caused to
be communicated and will only communicate or cause to be communicated any invitation or inducement
to engage in investment activity (within the meaning of section 21 of the Financial Services and
Markets Act 2000 (the “FSMA”)) received by it in connection with the issue or sale of any Notes in
circumstances in which section 21(1) of the FSMA does not apply to the Issuer; (ii) it has
complied and will comply with all applicable provisions of the FSMA with respect to anything done
by it in relation to the Notes in, from or otherwise involving the United Kingdom; and (iii) in
relation to each Member State of the European Economic Area which has implemented the Prospectus
Directive (each, a “Relevant Member State”), that with effect from and including the date on which
the Prospectus Directive is implemented in that Member State (the “Relevant Implementation Date”)
it has not made and will not make an offer of any Notes to the public in that Relevant Member
State, other than: (A) to legal entities which are authorized or regulated to operate in the
financial markets or, if not so authorized or regulated, whose corporate purpose is solely to
invest in securities; (B) to any legal entity which has two or more of: (1) an average of at least
250 employees during the last financial year, (2) a total sheet of more than €43,000,000, and (3)
an annual turnover of more than €50,000,000, all as shown in its last annual or consolidated
accounts; (C) to fewer than 100 natural or legal persons (other than qualified investors defined in
the Prospectus Directive); or (D) in any other circumstances falling within Article 3(2) of the
Prospectus Directive; provided, that no such offer of Notes shall require the Issuer to publish a
prospective pursuant to Article 3 of the Prospective Directive.

               For the purposes of this provision, the expression “offer of Notes to the public” in relation
to any Notes in any Relevant Member State means the communication in any form and by any means of
sufficient information on the terms of the offer and the Notes to be offered so as to enable an
investor to decide to purchase or subscribe the Notes, as the same may be varied in that Member
State by any measure implementing the Prospectus Directive in that Member State and the expression
“Prospectus Directive” means Directive 2003/71/EC and includes any relevant implementing measure in
each Relevant Member State.

          (e) The Initial Purchaser represents and warrants that (i) it is not, and will not acquire the
Notes on behalf or with the assets of, any “employee benefit plan” within the meaning of Section
3(3) of ERISA that is subject to Title I of ERISA or any other “plan” as defined in Section
4975(e)(1) of the Code that is subject to Section 4975 of the Code or any plan that is subject to
any substantially similar provision of federal, state or local law (“Similar Law”) (each, a
“Plan”), or (ii) no “prohibited transaction” under ERISA or Section 4975 of the Code or a violation
of Similar Law that is not subject to a statutory, regulatory or administrative exemption will
occur in connection with the Initial Purchaser’s acquisition or holding of the Notes. The Initial
Purchaser that is, or that will acquire the Notes on behalf or with assets of, any Plan further
represents and warrants that it is not sponsored (within the meaning of Section 3(16)(B) of ERISA)
by the Issuer, DRC, the Seller, the Servicer or the Indenture Trustee, or by an affiliate of any
such person.

8

 

          Section 5. Certain Covenants of the Issuer and DRC. The Issuer and DRC each
agrees with the Initial Purchaser that:

          (a) The Issuer will advise the Initial Purchaser promptly of any proposal to amend or
supplement the Offering Document and will not effect such amendment or supplementation
without the Initial Purchaser’s consent. If, at any time following delivery of any
document comprising the Offering Document or any Limited Use Issuer Free Writing
Communication and prior to the completion of the resale of the Notes by the Initial
Purchaser, any event occurs as a result of which the such document as then amended or
supplemented would include an untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, the Issuer promptly will notify
the Initial Purchaser of such event and promptly will prepare, at its own expense, an
amendment or supplement which will correct such statement or omission. Neither the consent
of the Initial Purchaser to, nor the Initial Purchaser’s delivery to offerees or investors
of, any such amendment or supplement shall constitute a waiver of any of the conditions set
forth in Section 6 hereof.

          (b) The Issuer will furnish to the Initial Purchaser copies of each document comprising
a part of the Offering Document and each Limited Use Issuer Free Writing Communication, in
each case as soon as available and in such quantities as the Initial Purchaser reasonably
requests. DRC will cause to be furnished to the Initial Purchaser, on the Closing Date, an
Officer’s Certificate attaching a copy of each document comprising a part of the Offering
Document, all amendments and supplements to such documents, and each Limited Use Issuer Free
Writing Communication, and certifying that such attachments are true and correct copies of
the same. DRC will also cause to be furnished to the Initial Purchaser, on the Closing
Date, the letters specified in Section 6(a) hereof. At any time the Notes are Outstanding,
the Issuer will promptly furnish or cause to be furnished to the Initial Purchaser and,
upon request of holders and prospective purchasers of the Notes, to such holders and
purchasers, copies of the information required to be delivered to holders and prospective
purchasers of the Notes pursuant to Rule 144A(d)(4) under the Securities Act (or any
successor provision thereto) in order to permit compliance with Rule 144A in connection with
resales by such holders of the Notes. The Issuer will pay the expenses of printing and
distributing to the Initial Purchaser all such documents.

          (c) During the period of two years after the Closing Date, the Issuer will not, and
will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to,
resell any of the Notes that have been reacquired by any of them.

          (d) The Issuer shall use its best efforts to ensure that it will not be or become, an
open-end investment company, unit investment trust or face-amount certificate company
that is or is required to be registered under Section 8 of the Investment Company Act.

          (e) The Issuer will pay all expenses incidental to the performance of its obligations
under the Transaction Documents including (i) all expenses in connection with

9

 

the execution, issue, authentication, packaging and initial delivery of the Notes, the
preparation of the Transaction Documents and the printing of the Offering Document and
amendments and supplements thereto, and any other document relating to the issuance, offer,
sale and delivery of the Notes; (ii) the cost of any advertising approved by the Issuer in
its discretion in connection with the issue of the Notes; (iii) for any expenses (including
fees and disbursements of counsel) incurred in connection with qualification of the Notes
for sale under the laws of such jurisdictions in the United States [and Canada] as the
Initial Purchaser designates and the printing of memoranda relating thereto; (iv) for any
fees charged by investment rating agencies for the rating of the Notes, and (v) for
expenses incurred in distributing the Offering Document (including any amendments and
supplements thereto) to the Initial Purchaser.

          (f) In connection with the offering, until the Initial Purchaser shall have notified
the Issuer of the completion of the resale of the Notes, neither the Issuer nor any of its
affiliates has or will, either alone or with one or more other persons, bid for or purchase
for any account in which it or any of its affiliates has a beneficial interest any Notes or
attempt to induce any person to purchase any Notes; and neither it nor any of its
affiliates will make bids or purchases for the purpose of creating actual, or apparent,
active trading in, or of raising the price of, the Notes.

          Section 6. Conditions of the Initial Purchaser’s Obligation. The obligation of the
Initial Purchaser to purchase and pay for the Notes on the Closing Date will be subject to the
accuracy of the representations and warranties on the part of the Issuer and DRC herein, the
accuracy of the statements of officers of the Issuer made pursuant to the provisions hereof, to the
performance by the Issuer of its obligations hereunder and to the following additional conditions
precedent:

          (a) The Initial Purchaser shall have received a letter or letters, dated as of the
Offering Circular of BDO Seidman, LLP in form and substance satisfactory to the Initial
Purchaser, confirming that they are certified independent public accountants and stating in
effect that they have performed certain specified procedures, all of which have been agreed
to by the Initial Purchaser, as a result of which they determined that certain information
of an accounting, financial or statistical nature set forth in the Offering Document agrees
with the accounting records of the Issuer and DRC, excluding any questions of legal
interpretation.

          (b) Subsequent to the execution and delivery of this Agreement, there shall not have
occurred (i) a change in U.S. or international financial, political or economic conditions
or currency exchange rates or exchange controls as would, in the judgment of the Initial
Purchaser, be likely to prejudice materially the success of the proposed issue, sale or
distribution of the Notes, whether in the primary market or in respect of dealings in the
secondary market, or (ii) (A) any change, or any development or event involving a
prospective change, in the condition (financial or other), business, properties or results
of operations of the Issuer or DRC which, in the judgment of the Initial Purchaser, is
material and adverse and makes it impractical or inadvisable to proceed with completion of
the offering or the sale of and payment for the Notes; (B) any downgrading in the rating of
any debt securities of the Issuer or DRC by any “nationally

10

 

recognized statistical rating organization” (as defined for purposes of Rule 436(g) under the
Securities Act), or any public announcement that any such organization has under surveillance or
review its rating of any debt securities of the Issuer or DRC (other than an announcement with
positive implications of a possible upgrading, and no implication of a possible downgrading, of
such rating); (C) any suspension or limitation of trading in securities generally on the New York
Stock Exchange or any setting of minimum prices for trading on such exchange, or any suspension of
trading of any securities of the Issuer or DRC on any exchange or in the over-the-counter market;
(D) any banking moratorium declared by U.S. Federal or New York authorities; (E) any material
disruption of clearing or settlement services in the United States or (F) any outbreak or
escalation of major hostilities in which the United States is involved, any declaration of war by
Congress or any other substantial national or international calamity or emergency if, in the
judgment of the Initial Purchaser, the effect of any such outbreak, escalation, declaration,
calamity or emergency makes it impractical or inadvisable to proceed with completion of the
offering or sale of and payment for the Notes.

          (c) The Notes shall have been duly authorized, executed, authenticated,
delivered and issued, and each of the Transaction Documents shall have been duly authorized,
executed and delivered by the respective parties thereto and shall be in full force and effect, and
all conditions precedent contained in the Transaction Documents shall have been satisfied.

          (d) The Initial Purchaser shall have received from counsel to each party to the Transaction
Documents, written opinions dated the Closing Date and in form and substance satisfactory to the
Initial Purchaser, covering such matters as the Initial Purchaser may reasonably request, including
but not limited to the following:

          (i) Corporate Opinions. An opinion in respect of each party to the
Transaction Documents that such party has been duly formed, is existing and in good
standing under the laws of its state of formation, with all requisite power and authority
to own its properties and conduct its business; and such party is duly qualified to do
business as a foreign entity in good standing in all other jurisdictions in which its
ownership or lease of property or the conduct of its business requires such qualification,
except where the failure to be so qualified, individually or in the aggregate, would not
reasonably be expected to have a material adverse effect on the financial position of such
party.

          (ii) Legal, Valid, Binding and Enforceable. An opinion in respect of each
party to the Transaction Documents that each Transaction Document to which it is a party
has been duly authorized, executed and delivered and constitutes the valid and legally
binding obligations of each party enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws
of general applicability relating to or affecting creditors’ rights and to general equity
principles.

          (iii) Notes. An opinion that the Notes have been duly authorized, executed,
authenticated, issued and delivered and conform to the

11

 

description thereof contained in the Offering Document; constitute valid and legally binding
obligations of the Issuer enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights; and will be entitled to the benefits of
the Indenture.

          (iv) No Consents Required. An opinion in respect of each party to the Transaction
Documents that in respect of such party, no consent, approval, authorization or order of, or
filing with, any governmental agency or body or any court is required for the consummation of the
transactions contemplated by the Transaction Documents.

          (v) Litigation. An opinion in respect of each party to the Transaction Documents that
in respect of such party, and other than as disclosed in the Offering Circular, there are no
pending actions, suits or proceedings against or affecting such party, any of its subsidiaries or
any of their respective properties that, if determined adversely to such party or any of its
subsidiaries, would individually or in the aggregate have a Material Adverse Effect, or would
materially and adversely affect the ability of such party to perform its obligations under the
Transaction Documents; and no such actions, suits or proceedings are threatened or, to such
counsel’s knowledge, contemplated.

          (vi) Non-Contravention. An opinion in respect of each party to the Transaction
Documents that in respect of such party the execution, delivery and performance of the Transaction
Documents to which it is a party will not conflict with, contravene or result in a breach or
violation of any of the terms and provisions of, or constitute a default under (A) the
organizational documents of such party, (B) any statute, rule, regulation or order of any
governmental agency or body or any court having jurisdiction over such party or any subsidiary of
such party or any of their properties, or (C) any agreement or instrument to which such party or
any such subsidiary is a party or by which such party or any such subsidiary is bound or to which
any of the properties of such party or any such subsidiary is subject, or the organizational
documents of such party or any such subsidiary.

          (vii) Securities Laws. An opinion that it is not necessary in connection with (A) the
offer, sale and delivery of Notes by the Issuer to the Initial Purchaser pursuant to this
Agreement, or (B) the resales of the Notes by the Initial Purchaser in the manner contemplated by
this Agreement, to register the Notes under the Securities Act or to qualify the Indenture under
the Trust Indenture Act.

          (viii) Investment Company Act. An opinion that the Issuer is not and, after giving
effect to the offering and sale of the Notes and the application of the proceeds as described in
the Offering Document, will not be an “investment company” as defined in the Investment Company
Act, including an “excepted investment company”.

12

 

          (ix) Federal Income Tax. An opinion that for U.S. federal income tax purposes
(A) the Issuer will not be treated as a publicly traded partnership or taxable mortgage
pool taxable as a corporation; and (B) the Notes will be treated as indebtedness of the
Issuer.

          (x) Bankruptcy. An opinion or opinions, covering such bankruptcy matters as
the Initial Purchaser may reasonably request.

          (xi) Security Interests. An opinion to the effect that (A) in the event that
the transfer of the Timeshare Loans from the Seller to the Issuer shall be considered a
loan secured by the Timeshare Loans, upon execution of the Sale Agreement and upon
possession of the Obligor Notes in the States of Utah or Minnesota and the filing of
financing statements related thereto, the Issuer will have a perfected first priority
security interest in the Obligor Notes and other assets which may be perfected by filing,
and (B) upon execution of the Indenture and upon possession of the Obligor Notes in the
States of Utah or Minnesota and the filing of financing statements related thereto, the
Indenture Trustee will have a perfected first priority security interest in the Obligor
Notes and other assets which may be perfected by filing.

          (xii) Local Law. An opinion with respect to each jurisdiction in which a
Resort is located to the effect that (A) all timeshare associations for Resorts in such
jurisdiction are duly organized, validly existing and in good standing under the laws of
such jurisdiction, (B) the manner of offering for sale of and the sale of timeshare estates
in such Resorts complies with the requirements of the applicable governmental authorities
in such jurisdiction, (C) the form of purchase contract, obligor notes or mortgages (as
applicable) are sufficient to create a valid and binding obligation of the purchaser
enforceable against such purchaser in accordance with its terms, (D) the timeshare loans
are assignable by the holder thereof, and (E) the form of assignment of mortgage is the
proper form for recording in such jurisdiction.

          (e) The Initial Purchaser shall have received a letter from Baker & McKenzie LLP and Katten
Muchin Rosenman LLP that such counsel has no reason to believe that the Offering Document, as of
the date hereof and as of the Closing Date, contained any untrue statement of a material fact or
omitted to state any material fact necessary to make the statements therein not misleading, it
being understood that such counsel need express no opinion as to the financial statements or other
financial data contained in the Offering Document.

          (f) The Initial Purchaser shall have received from each party to the Transaction Documents
such information, certificates and documents as the Initial Purchaser may reasonably have requested
and all proceedings in connection with the transactions contemplated by this Agreement and all
documents incident hereto shall be in all material respects reasonably satisfactory in form and
substance to the Initial Purchaser.

13

 

          (g)
(i) The Class A Notes and Class B Notes shall have received a rating of “A” and
“BBB+”, respectively, from S&P, and (ii) neither of such ratings shall have been rescinded,
and no public announcement shall have been made by S&P that the rating of any Class of Notes
has been placed under review.

     The Initial Purchaser may in its sole discretion waive compliance with any conditions to the
obligations of the Initial Purchaser hereunder.

          Section 7. Indemnification and Contribution.

          (a) Each of the Issuer and DRC jointly and severally agrees (i) to indemnify and hold
harmless the Initial Purchaser, its partners, directors and officers and each person, if
any, who controls the Initial Purchaser within the meaning of Section 15 of the Securities
Act, against any losses, claims, damages or liabilities, joint or several, to which the
Initial Purchaser may become subject, under the Securities Act or the Exchange Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (A) any breach of any of the representations and
warranties of the Issuer or DRC contained herein, or (B) any untrue statement or alleged
untrue statement of any material fact contained in any document comprising a part of the
Offering Document, any Limited Use Issuer Free Writing Communication or any amendment or
supplement thereto, or any related preliminary offering circular, or arise out of or are
based upon the omission or alleged omission to state therein a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, including any losses, claims,
damages or liabilities arising out of or based upon the Issuer’s failure to perform its
obligations under Section 5(a) hereof, and (ii) will reimburse the Initial Purchaser for any
legal or other expenses reasonably incurred by the Initial Purchaser in connection with
investigating or defending any such loss, claim, damage, liability or action as such
expenses are incurred; provided, however, that neither the Issuer nor DRC will be
liable in any such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement in or omission or
alleged omission from any of such documents in reliance upon and in conformity with written
information furnished to the Issuer by the Initial Purchaser specifically for use therein,
it being understood and agreed that the only such information consists of the information
described as such in subsection (b) below; and provided, further, that neither the
Issuer nor DRC will be liable in any such case to the extent that such misstatement or
omission from an Offering Document or Limited Use Issuer Free Writing Communication was
corrected by the Issuer or DRC reasonably prior to the initial time of sale and the Initial
Purchaser did not deliver, prior to the initial time of sale, a copy of the Offering
Document or Limited Use Issuer Free Writing Communication, as then revised, amended or
supplemented, if either the Issuer or DRC furnished copies thereof reasonably prior to the
initial time of sale to the Initial Purchaser in accordance with the terms of this
Agreement.

          (b) The Initial Purchaser will indemnify and hold harmless the Issuer, its directors
and officers, each person, if any, who controls the Issuer within the meaning of Section 15
of the Securities Act and DRC, against any losses, claims, damages or

14

 

liabilities to which the Issuer may become subject, under the Securities Act or the Exchange Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of any material
fact contained in any document comprising a part of the Offering Document, any Limited Use Issuer
Free Writing Communication, or any amendment or supplement thereto, or any related preliminary
offering circular, or arise out of or are based upon the omission or the alleged omission to state
therein a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with written information furnished to the Issuer by the
Initial Purchaser specifically for use therein, and will reimburse any legal or other expenses
reasonably incurred by the Issuer in connection with investigating or defending any such loss,
claim, damage, liability or action as such expenses are incurred, it being understood and agreed
that the only such information furnished by the Initial Purchaser consists of the second, fifth and
tenth paragraphs under the caption “PLAN OF DISTRIBUTION”; provided, however, that the
Initial Purchaser shall not be liable for any losses, claims, damages or liabilities arising out of
or based upon the Issuer’s failure to perform its obligations under Section 5(a) hereof.

          (c) Promptly after receipt by an indemnified party under this Section of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under subsection (a) or (b) above, notify the indemnifying
party of the commencement thereof; but the omission so to notify the indemnifying party will not
relieve it from any liability which it may have to any 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 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 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation. 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 includes an unconditional release of such indemnified
party from all liability on any claims that are the subject matter of such action and does not
include a statement as to or an admission of fault, culpability or failure to act by or on behalf
of any indemnified party.

          (d) If the indemnification provided for in this Section is unavailable or insufficient to hold
harmless an indemnified party under subsection (a) or (b) above, then each indemnifying party shall
contribute to the amount paid or payable by such

15

 

indemnified party as a result of the losses, claims, damages or liabilities referred to in
subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative
benefits received by the Issuer on the one hand and the Initial Purchaser on the other from
the offering of the Notes or (ii) if the allocation provided by clause (i) above 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 Issuer
on the one hand and the Initial Purchaser on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities as well as any other
relevant equitable considerations. The relative benefits received by the Issuer on the one
hand and the Initial Purchaser on the other shall be deemed to be in the same proportion as
the total net proceeds from the offering (before deducting expenses) received by the Issuer
bear to the total discounts and commissions received by the Initial Purchaser from the
Issuer under this Agreement. The relative fault 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
Issuer or the Initial Purchaser and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue 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 the provisions of this subsection (d), the Initial Purchaser
shall not be required to contribute any amount in excess of the difference between the total
price at which the Notes were resold by it and the total price of the Notes acquired by it.

          (e) The obligations of the Issuer and DRC under this Section shall be in addition to
any liability which the Issuer or DRC may otherwise have and shall extend, upon the same
terms and conditions, to each person, if any, who controls the Initial Purchaser within the
meaning of the Securities Act or the Exchange Act; and the obligations of the Initial
Purchaser under this Section shall be in addition to any liability which the Initial
Purchaser may otherwise have and shall extend, upon the same terms and conditions, to each
person, if any, who controls the Issuer within the meaning of the Securities Act or the
Exchange Act.

          Section 8. Default of Initial Purchaser. If the Initial Purchaser defaults in its
obligations to purchase Notes and the aggregate principal amount of the Notes with respect to
which such default occurs exceeds 10% of the total principal amount of the Notes and arrangements
satisfactory to the Issuer and DRC for the purchase of such Notes by any other persons are not
made within 36 hours after such default, this Agreement will terminate without liability on the
part of the Issuer or DRC, except as provided in Section 9 hereof. Nothing herein shall relieve
the Initial Purchaser from liability for any default hereunder.

          Section 9. Survival of Certain Representations and Obligations. The respective
indemnities, agreements, representations, warranties and other statements of the Issuer and DRC or
their officers and of the Initial Purchaser set forth in or made pursuant to this Agreement will
remain in full force and effect, regardless of any investigation, or statement as to

16

 

the results thereof, made by or on behalf of the Initial Purchaser, the Issuer and DRC or any of
their respective representatives, officers or directors or any controlling person, and will survive
delivery of and payment for the Notes. If this Agreement is terminated pursuant to Section 8 hereof
or if for any reason the purchase of the Notes by the Initial Purchaser is not consummated, the
Issuer shall remain responsible for the expenses to be paid or reimbursed by it pursuant to Section
5 hereof and the respective obligations of the Issuer, DRC and the Initial Purchaser pursuant to
Section 7 hereof shall remain in effect. If the purchase of the Notes by the Initial Purchaser is
not consummated for any reason other than solely because of the termination of this Agreement
pursuant to Section 8 hereof or the occurrence of any event specified in clause (C), (D) or (E) of
Section 6(b)(ii) hereof, the Issuer and DRC will reimburse the Initial Purchaser for all
out-of-pocket expenses (including fees and disbursements of counsel) reasonably incurred by them in
connection with the offering of the Notes.

          Section 10. Severability Clause. Any part, provision, representation, or warranty of
this Agreement which is prohibited or is held to be void or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof.

          Section 11. Notices. All communications hereunder will be in writing and, (a) if sent
to the Initial Purchaser will be mailed, delivered or telegraphed and confirmed to the Initial
Purchaser at Credit Suisse Securities (USA) LLC, One Madison Avenue, New York, NY 10010,
Attention: General Counsel of the Americas; (b) if sent to the Issuer, will be mailed, delivered
or telegraphed and confirmed to it at c/o U.S. Bank Trust National Association 300 Delaware
Avenue, 9th Floor, Wilmington, Delaware 19801, Attention: Corporate Trust Services; and
(c) if sent to DRC will be mailed, delivered or telegraphed and confirmed to it at 10600 West
Charleston Blvd., Las Vegas, Nevada 89135, Attention: General Counsel; provided, however, that any notice to the Initial Purchaser pursuant to Section 7 hereof will be mailed,
delivered or telegraphed and confirmed to the Initial Purchaser.

          Section 12. Successors. This Agreement will inure to the benefit of and be binding
upon the parties hereto and their respective successors and the controlling persons referred to in
Section 7 hereof, and no other person will have any right or obligation hereunder, except that
holders of Notes shall be entitled to enforce the agreements for their benefit contained in the
second and third sentences of Section 5(b) hereof against the Issuer as if such holders were
parties thereto.

          Section 13. Applicable Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAW OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK. The Issuer and DRC hereby submit to the non-exclusive jurisdiction of the Federal and
state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby.

          Section 14.
Counterparts, Etc. This Agreement supersedes all prior or contemporaneous
agreements and understandings relating to the subject matter hereof between

17

 

the Initial Purchaser, DRC and the Issuer. Neither this Agreement nor any term hereof may be
changed, waived, discharged or terminated except by a writing signed by the party against whom
enforcement of such change, waiver, discharge or termination is sought. This Agreement may be
signed in any number of counterparts each of which shall be deemed an original, which taken
together shall constitute one and the same instrument.

          Section 15. No Petition. During the term of this Agreement and for one year and one
day after the termination hereof, none of the parties hereto or any affiliate thereof will file
any involuntary petition or otherwise institute any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding or other proceeding under any federal or state bankruptcy or
similar law against the Issuer.

          Section 16. Reserved.

          Section 17. No Advisory or Fiduciary Responsibility. Each of the Issuer and DRC
acknowledges and agrees that: (a) the purchase and sale of the Notes pursuant to this Agreement,
including the determination of the offering price of the Notes and any related discounts and
commissions, is an arm’s-length commercial transaction among the Issuer, DRC and the Initial
Purchaser and each of the Issuer and DRC is capable of evaluating and understanding and understands
and accepts the terms, risks and conditions of the transactions contemplated by this Agreement; (b)
in connection with the purchase and sale of the Notes, the Initial Purchaser is and has been acting
solely as a principal and is not the agent or fiduciary of either of the Issuer or DRC, or their
respective affiliates, stockholders, creditors or employees or any other party; (c) the Initial
Purchaser has not assumed or will assume an advisory or fiduciary responsibility in favor of either
of the Issuer or DRC with respect to any of the transactions contemplated hereby; (d) the Initial
Purchaser and its affiliates may be engaged in a broad range of transactions that involve interests
that differ from those of either of the Issuer or DRC and that the Initial Purchaser has no
obligation to disclose any of such interests by virtue of any fiduciary or advisory relationship;
(e) the Issuer and DRC shall each consult with its own advisors concerning the purchase and sale of
the Notes and shall be responsible for making their own independent investigation and appraisal of
the transaction contemplated hereby, and the Initial Purchaser shall not have any responsibility or
liability to the Issuer or DRC with respect thereto and (f) each of the Issuer and DRC waive, to
the fullest extent permitted by law, any claims it may have against the Initial Purchaser for
breach of fiduciary duty or alleged breach of fiduciary duty.

     This Agreement supersedes all prior agreements and understandings (whether written or oral)
among the Issuer, DRC and the Initial Purchaser, or any of them, with respect to the subject
matter hereof.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

18

 

          If the foregoing is in accordance with your understanding of our agreement, please sign
and return to the undersigned a counterpart hereof, whereupon this Note Purchase Agreement shall
represent a binding agreement among the Issuer, DRC and the Initial Purchaser.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	Diamond Resorts Owner Trust 2009-1,

     as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Diamond Resorts Seller 2009-1 LLC,

as Owner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David F. Palmer
 

Name: David F. Palmer
	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	Diamond Resorts Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David F. Palmer
 

Name: David F. Palmer
	 	 
	 

	 	 	 	Title: EVP / Chief Financial Officer	 	 

The foregoing Note Purchase Agreement is hereby confirmed and accepted as of
the date first above written.

Credit Suisse Securities (USA) LLC

	 	 	 	 	 

	By:
	 	/s/ Stephen Viscovich	 	 
	 

	 	 

Name: Stephen Viscovich
	 	 
	 

	 	Title: Director	 	 

Signature Page, Note Purchase Agreement

 

 

EXHIBIT A

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Initial Purchaser	 	Class	 	Initial Note Balance	 	Purchase Price (%)
	Credit Suisse Securities (USA) LLC
	 	 	A	 	 	$	169,200,000.00	 	 	 	98.986737	%
	 
	 	 	B	 	 	$	12,800,000.00	 	 	 	91.452101	%

 

 

EXHIBIT B

GENERAL USE ISSUER FREE WRITING COMMUNICATION

 

 

	Diamond Resorts INTERNATIONAL Company Presentation September 2009

 

 

	Table of Contents 1. Company Overview 2. Sales & Marketing 3. Property Management 4. Consumer
Finance Credit Underwriting Servicing and Collectior Information Systems Portfolio Performance
Company Financials Contact Information

 

 

	1. Company Overview

 

 

	Company Overview Annually, nearly 1.4 million owners, members, and guests enjoy the simplicity,
choice, and comfort that Diamond Resorts International® offers through our branded hospitality
experience In April 2007, Diamond acquired Sunterra Corporation in a transaction valued at
approximately $700 million The transaction was financed through the contributions of cash, other
assets and borrowings under senior secured credit facilities Following the acquisition, Diamond
launched a global re-branding initiative designed to consistently provide the highest standards of
satisfaction, hospitality and guest experiences throughout all of its resorts m The company
consists of a network of nearly 160 branded and affiliated resorts and more than 24,000 guest beds
in 26 countries Considered one of the most geographically diverse platforms in the industry with
resort locations throughout the continental United States, Hawaii, Canada, Mexico, the Caribbean,
Europe, Asia, Australia, and Africa Diamond has access to a captive membership base of more than
400,000 owner families, which currently ranks second in the industry Each holder purchases points,
generally in week-equivalent blocks, entitling them the use of the property for a specific length
of time

 

 

	Company Overview Executive Management Team Chairman & CEO of Diamond Resorts International® Over 20 years of
experience in vacation ownership industry Founded the Cloobeck companies, a group of affiliated
companies with a highly diversified portfolio of assets and 25 years of experience in the
development, management, operations, marketing, and sales of real estate properties Chief Financial
Officer for Diamond Resorts International® 20 years of experience as private equity professional
M.B.A. from J.L. Kellogg Graduate School of Management at Northwestern University Senior Vice
President in charge of Diamond’s sales and marketing division Over 25 years experience in
vacation ownership industry 1 billion dollars of vacation ownership sales in the last 4 years
Senior Vice President in charge of Diamond’s resort management division Nearly 30 years of
management experience with major hotel brands, including Marriott, Hilton, Ramada, and Radisson
Vice President overseeing Diamond’s consumer finance division Over 20 years of experience in
vacation ownership industry Financial services and operations professional

 

 

	Company Overview Focus Diversified Sources of Revenue Stable cash flow from resort
management contracts (cost plus, evergreen) VOI sales stream, supported entirely from owned and
defaulted inventory — no need for capital intensive development            Capital Footprint Reduction:
took steps to offset the rising cost of borrowing coupled with lower advance rates and tightening
credit availability Implemented Cash Incentive Programs to increase cash sales (cash sales have
increased from 35% to 65%) Raised interest rates 200 bps Tightened credit underwriting guidelines
Expense / Cost Control Closed low margin sales centers B Eliminated traditional FDI (First Day
Incentive) Programs Implemented new reduced sales commission structure

 

 

	Company Overview Key Business Areas

 

 

	Company Overview
Key Highlights Demographic boom Increasing public acceptance Low penetration High
satisfaction rate Few branded players Industry in consolidation mode One of the world’s largest
vacation Significant operating leverage with ownership companies diversified sources of revenue and
FRTTDA Extensive geographic footprint with j oni k premium resorts in key strategic Experienced and
motivated destinations management team Extended $200 million ABCP conduit facility in 2009

 

 

	Industry Diamond Resorts International® In their late 40’s to early 60’s Average age 56 Own
their primary home Own their PTM home Household income $11 Ok/yr Household income
relatively affluent J Enjoys the product Satisfied with the product Low penetration rate
weeks/year This is the single largest population segment in the U.S. and Europe

 

 

	Well Positioned Among Branded Players Diamond Resorts 2009 average unit-equivalent selling price in
North America: $25,9 6

 

 

	Company Overview A Market Leader — Owner Families Diamond Owner Families Diamond vs. Competitors
Source: Company reports and industry websites

 

 

	Company Overview Trust Based Club a Vacation interests from various component sites are held in
trust H Customers purchase a certain number of points from a common homogenized vacation interests
pool (not site specific) m Owners are entered into a Registry of Members Owners receive a
Certificate of Points m Owners receive an insurance title policy for the amount of purchase from
First American Title Insurance Company (FATCO) Assures points are backed by actual vacation
interests 1 Assures no liens or encumbrances on vacation interests held by the trust FATCO
monitors as trustee Owners are automatically members of THE Club®

 

 

	Company Overview Building and Restocking of Inventory Home Owner Association fee. Typical one week
fee is $965 per interval equivalent in 2009

 

 

	Company Overview Geographic Resort Count Diamond Resorts International® is the only leading brand
with a substantial presence in both North America and Europe Number of Owned & Affiliated Vacation
Ownership Resorts Number of Owned & Affiliated Vacation Ownership Resorts Outside North America, HI
& Caribbean Source: Company reports and industry websites

 

 

	The Club® at Diamond Resorts International® worldwide resort destinations

 

 

	The Club® at Diamond Resorts International® worldwide resort destinations

 

 

	Resort Locations and Developer Sales Intervals Beginning Inventory Owner Inventory Intervals U.S.
Core Resorts Resort City Resort State , , u/ Transfered to Intervals (Sold) Trust Bent Creek
Golf Village Gatlinburg TO 2,444.0 903.0 1,4 7.0 Cypress Pointe Orlando FL_ 21, 39.0 11,790.4 , 11.
Daytona Beach Regency Daytona FL_ 4,524.0 1,613.5 2,204.5 Desert Paradise Resort Las Vegas NV
7,904.0 — 7,344.0 Flamingo Beadi Simpson Bay ST. Maarten 10, 32.5 6,130.0 4,140.0 Grand Beach
Orlando FL_ 10,059.5 5,551.9 4.021.9 Greensprings Vacation Resort Williamsburg VA 7,696.0 4,554.6
2,4 0. Island Links Resort Hilton Head Island SC 3,016.0 2,043.0 946.0 Kaanapali Beach Club Maui HI
21,476.0 14.7 7.5 5,521.0 Lake Tahue Vacation Resort South LakeTahoe CA 9,464.0 5,170.5 3,326.0
London Bridge Resort Lake Havasu AZ 624.0 ; 612.0 Marquis Villas Resort Palm Springs CA 1,976.0 -
-_ Polo Towers Suites Las Vegas NV 16,744.0 13,300.5 1.955.0 Polo Towers Villas Las Vegas NV
10,400.0 ,344.5 55.0 Polynesian Isles Orlando FL_ 6,760.0 5,235.0 ;_ Ridge on Sedona Golf Sedona AZ
9,205.0 4,9 9.0 3, 33.5 Ridge Pointe Stateline NV 1,352.0 1.172.5 75.5 Royal Dunes Hilton Head
Island SC_ 2,912.0 2.639.0 -_ Royal Palm Simpson Bay ST. Maarten 7,2 0.0 4,5 1.5 2,332.5 San Luis
Bay Avila Beach CA 4,310.0 3,126.5 340.5 Scottsdale Links Resort Scottsdale AZ 11, 56.0 — 11,62 .0
Soottsdale Villa Mirage Scottsdale AZ .070.5 4,610.1 2,9 6.4 Sedona Springs Sedona AZ 2,0 0.0
1,703.5 299.0 Sedona Summit Sedona AZ 14,577.0 4,67 .4 9,149. Suites at Fall Creek Branson MO
11,232.0 5,05 . 5,559.3 Tahoe Beach & Ski South Lake Tahoe CA 7,2 0.0 6,767.0 _ The
HistoricPowhatan Resort Williamsburg VA 23,0 .0 14,290.0 7,590.5 The Point at Poipu Kauai HI 11,3
        .0 ,307.5 2,250.5 Villas de SantaFe Santa Fe NM 5,460.0 2,9 5.2 1, 7.2 Villas of Poco Diablo Sedona
AZ 1,716.0 1,430.0 220.0 Villas of Sedona Sedona AZ 2,0 0.0 1,676.0 329.0 Total U.S. Core Resorts |
| | 259,645.5 I 147,439.5 I 92,1 6.5 i to Beginning inventory is equal to total intervals at the
site except for those properties gained through the Epic acquisition. Beginning inventory at
these resorts is equal to the entire interest Diamond Resorts gained through the acquisition..

 

 

	Company Overview Guest Satisfaction

 

 

	Company Overview Overview of Corporate Insurance All global DRJ resorts, including HOAs, are fully
covered with insurance including but not limited to: Property Marina operators legal liability &
hull Commercial general liability Crime coverage Business automobile Excess liability Workers
compensation and employer liability Fiduciary liability Umbrella liability Errors and omissions
Property Insurance Commercial Liability Limits of Insurance: S300M Blanket Loss Limit $2M Each
Occurance $1OOM Equipment Breakdovm — Total Limit $4M General Aggregate — Per Location S250M
Earth Movement except CA $4M Products/Completed Operations Aggregate $1 OOM Earth Movement
California $2M Personal & Advertising Injury $250MFloodZonesexceptZonesA& V $1M Damage to
Premises Rented to You SlOOMFlood Zones A& V $10M General Aggregate-Policy Cap S250M Named
Windstorm $1 OOM Demolition and Increased Cost of Construction SlOOMLeasehoId Interest SlOOMRental
Value SlOOMBoiler and Machinery Deductibles: $1 OOKProperty Damage — Per Occurence, except $1
OOKEach Occurence SlOOKBoiler and Machinery S250K Special Flood Hazard Areas SSOOKFlood at Branson
SlOOKPlant, Trees, Shrubs, Lawns, Go If Courses $        lOOKBeach Improvements and Sea Walls 5%
TlV/$250KEarth Movement — CA& HI 5% TTv7$250KNamed Windstorm — FL & VI 3% T1V/$250K All Other Named
Windstorm 24 Hours Time Element

 

 

	Sales & Marketing

 

 

	Sales & Marketing Overview Diamond Resorts International® deploys various strategic marketing
channels which consist of: In-house Outside public contacts OPC Mini-vacations Tour vendors
Owner referral Trial programs Telemarketing tours Potential members may purchase Vacation Interests
through an experienced sales force located on premise at select resorts, several off-site sales
centers and through call centers worldwide Members can also utilize their points as currency for
services such as airline tickets, miles, and cruises The company markets and sells Vacation
Interests in Vacation Points Vacation Points consists of Vacation Interest ownership on a float
unit/float season structure conveyed as an undivided interest

 

 

	Yearly Points Sold

 

 

	Comparison of Sales Activity Note: During the bankruptcy, price per point was discounted but
margins remained steady due to our use of low cost marketing efforts. Although Diamond Resorts
currently sells trust based points only, past interval sales have been assigned a point value for
this report. k__

 

 

	Sales and portfolio statistics As of June 30, 2009

 

 

	Sales & Marketing Results for the YTD Ending June 30, 200 & 2009 Note: Data presented in graphs
herein is non GAAP and excludes National Sales & Marketing.

 

 

	Sales & Marketing Results for the YTD Ending June 30, 200 & 2009 2009Acnials 200 Actuals Variance
(S in thousands except Tours and VPG) VOI Sales Tours VPG VOI Sales Tours VPG VOI Sales Tours VPG
FL/Caribbean Region Cypress Pointe $3,70 2,657 S 1,395 5 3,46 1, 92 $1, 33 $240 765 $ (437)
Grand Bcadi 4,11 3,542 1,163 9,472 6,51 1,453 (5,354) (2,976) (291) Daytona Beach Regency — 1 -
1,340 0 1,65 (1,340) ( 07) (1,65 ) StMarteen 149 310 4 0 3,612 2,54 1,417 (3,463) (2,23 ) (93 )
Subtotal FL/Caribbean $7,974 6,510 $1 25 $17, 91 11,766 $1,521 $ (9,917) (5,256) $ (296)
Mid-Atlantic / Mid-West Region Wffliamsburg Sales Centers $ ,657 5,2 0 $1,640 $10,054 6,0 4 $
1,653 $ (1,397) ( 04) $ (13) The Suites at Fall Creek 4,599 2,679 1,717 6,017 4,200 1,433 (1,41 )
(1,521) 2 4 Bent Creek Golf 46 7 6,520 1,43 1,056 1,362 (1.3931 (1.049) 5,15 Subtotal Mid-Atlantic
/ Mid-West $13,301 7,966 $1,670 $17,509 1L340 $1,544 $ (4,20 ) (3,374) $126 CA/Nevada
Region LakcTahoe $ ,206 4,411 S 1, 60 i 9, 04 4,560 S 2,150 $ (1,59 ) (149) $ (290) San Luis Bay
2,963 1,604 1, 47 4,117 1, 27 2,253 (1,154) (223) (406) Desert Paradise01 — - — 5,199 2,525 2,059
(5,199) (2,525) (2,059) Polo Towers 6,932 4,622 1,500 1,274 1,039 1,226 5.659 3,5 3 274 Subtotal
CA/Nevada $1 ,101 10,637 $1,702 $20393 9,951 $2,049 $ (2,292) 6 6 $ (34 ) Arizona Region
Smttsdale $ ,190 4,397 $1, 63 $10,335 5,193 $1,990 $ (2,144) (796) $ (127) Summit 10,030
4,144 2,420 11,960 3, 61 3,09 (1,930) 2 3 (677) SedonaRidge 11,125 5,651 1,969 16,35 6,341 2,5 0
(5,232) (690) (611) Villas dc Santa Fc ; ; ;_ 146 154 950 (146) (154) (950) Subtotal Arizona $
29,345 14,192 $2,06 $3 ,79 15,549 S 2,495 $ (9,453) (L357) $ (427) Hawaii Kianapali $1 ,177
        ,674 $2,096 $2 ,260 10,6 3 $2,645 $ (10,0 3) (2,009) $ (550) Poipu 6,039 2,255 2,67 10,107 3.992
2,532 (4,067) (1,737) 147 Subtotal Hawaii S 24,217 10,929 $2,216 $3 ,367 14,675 $2,614 $
(14,150) (3,746) $ (399) Total North America ~ $92,939 50,234 $1, 50 ~ $132,95 63,2 1 $2,101 ~$
(40,019) (13,047) $ (251) Europe $10,133 7,421 $ L365 $11,43 ,910 $1,2 4 $ (L305) (1,4 9) $2
Total Gross Vacation Interest Revenue $103,072 57,655 S 1,7 $144396 72,191 $2,000 $ (41.324)
‘ (14,536) $ (212) Noles: 1 Desert Paradise sales are now being sold out of Polo Towers Data
presented in graphs herein is non GAAP and excludes National Sales & Marketing

 

 

	Sales & Marketing Results for the MTD Ending June 30, 200 & 2009 Note: Data presented in graphs
herein is non GAAP and excludes National Sales & Marketing.

 

 

	Sales & Marketing Results for the MTD Ending June 30, 200 & 2009 June 09 Actuals _ June 0 Actuals
Variance ($ in thousands except Tours and VPG) VOI Sales Tours VPG VOI Sales Tours VPG VOI Sales
Tours VPG FL/Caribbean Region Cypress Poiiite $597 47 $1,249 $1,00 477 2,113 $ (411) 1 S (
64) Grand Beach 9 751 1,195 1,742 1,094 1,592 ( 44) (343) (397) DaytonaBeadiRcgcnq’ ... 257 171
1,501 (257) (171) (1,501) StMartcen — : -_ 702 545 1,2 (702) (545) (1.2 ) Subtotal FL/Caribbean S
1,494 1 29 S 1216 $3,709 2 7 1,622 $ (2 14) (1,05 ) $ (406) Mid-Atlantic / Mid-West Region
Wffliamsburg Sales Centers $1,964 1,151 $1,706 $2,577 1,521 $1,694 $ (613) (370) 5 12 The
Suites at Fall Creek 1,424 55 2,552 1,376 1,165 1,1 1 4 (607) 1,371 Bent Creek Golf ; : ;_ 366 251
1,457 (366) (251) (1.457) Subtotal Mid-Atlantic / Mid-West $3,3 7 1,709 $1,9 2 $4,31 2,937 $
1,470 $ (931) (1 2 ) $512 CA/Nevada Region LakeTahoc $2,037 9 7 $2,064 $1,956 931 $2,101 $
1 56 $ (37) San Luis Bay 531 324 1,640 62 344 2,505 (330) (20) ( 65) Desert Paradise 1 ... 20 426
1,926 ( 20) (426) (1,926) Polo Towers 1,5 3 941 1,6 3 17 221 06 1,405 720 77 Subtotal CA/Nevada $
4,152 2 52 $1, 44 $3, 16 1,922 $1,9 5 $336 330 $ (142) Arizona Region Scottsdalc $1,343
744 $1, 06 $1,601 94 S 1,6 9 $ (257) (204) $117 Summit 1,370 730 1, 77 2,095 72 2, 77 (725) 2
(1,000) Scdoiia Ridge 1, 49 901 2,052 2,299 1,066 2,156 (450) (165) (105) Villas de Santa Fc ; : -_
94 104 906 (94) (104) (906) Subtotal Arizona $4,562 2 75 $1,921 $6,0 2, 46 $2,139 $ (1,526)
(471) $ (21 ) Hawaii Kaanapali $2,901 1,212 $2,393 $4,209 1, 4 $2,277 $ (1,30 ) (636) $116
Poipu 995 350 2, 42 1,941 636 3,051 (946) (2 6) (209) Subtotal Hawaii $3, 96 1 62 $2,494 $
6,149 2,4 4 $2,476 $ (2 54) (922) $1 Total North America 1 17,492 9,127 $1,916 ~ $24,0 1 12,476
$1,930 ~$ (6,5 9) (3,349) $ (147 Europe $1, 12 1 44 $ U4 $1, 77 1,42 $ MM $ (65) ( 4) $34
Total Gross Vacation Interest Revenue $19303 10,471 $1, 44 $25,95 13,904 $1. 67 $ (6,654)F
(3,433) $ (23) Notes: k i Desert Paradise sales are now being sold out of Polo Towers            Data
presented in graphs herein is non GAAP and excludes National Sales & Marketing

 

 

	Property Managemetnt

 

 

	Property Managemetnt Overview One of the largest vacation interest resort property management
companies A profitable business that supports vacation interest sales Builds brand awareness and
ensures seamless delivery of brand values Professional services offering entails: Association
management Inventory yield management, rental programs and reservations Accounting and treasury

 

 

	Property Managemetnt Resort Rankings Current Loan Balance % of Aggregate Interval (As of June 30,
2009) Principal Balance International Diamond Resorts U.S. Collection 194,4 3,2 5 5 .5% (1) (1)
Diamond Resorts Hawaii Collection 32,170,0 3 9.7% (1) (1) Kaanapali Beach Vacation Resort
31,495,121 9.5% Gold Crown Premier Diamond Resorts California CoUection 19,541,263 5.9% (1) (1)
Lake Tahoe Vacation Resort 9,923,954 3.0% Gold Crown Premier San Luis Bay Inn 6,735,592 2.0% Silver
Crown Premier Poipu Point Vacation Resort 5,35 ,261 1.6% Silver Crown Premier Cypress Pointe Resort
3,36 ,563 1.0% Silver Crown Select Scottsdale Links Resort 2,934,73 0.9% Standard Select Sedona
Summit Resort 2,726,312 0. % Silver Crown Premier Grand Beach Vacation Resort 2,619,536 0. % Gold
Crown Premier Diamond Pacific 2,569,674 0. % (2) Premier Ridge on Sedona Golf Resort 2,291,06 0.7%
Silver Crown Premier Desert Paradise Resort 2,031,4 3 0.6% Standard Standard Scottsdale Villa
Mirage Resort 1, 13,467 0.5% Gold Crown Premier Other 12,132,005 3.7% O Diamond Resorts Trust
Collections are composed of all resorts and affiliations. 2)The folio wing Diamond Resorts Pacific
resorts are rated Go Id Crown byRCIThe Oasis,The Pines at Sun River,The Village at Steamboat
Springs, Vallarta Torre, Kings buryofTahoe,and Torres Mazatlan. i

 

 

	4. Consumer Finance

 

 

	Consumer Finance Functions and Responsibilities Diamond Resorts Financial Services, Inc. is a
vertically integrated consumer finance servicer Key functions include: Credit Underwriting
Reconveyance Price Compliance Mortgage Servicing for US Resorts Contract Origination
Collections and Recovery Title & Collateral Services Resort Maintenance Fee Collection Escrow
Processing Customer Service Sales/Inventory Portfolio Data Analyses Portfolio Investor
Reporting Agreed upon procedures ( AUP ) are performed annually by an independent public accounting
firm on the Servicer’s servicing controls and procedures as identified in the Uniform Single
Attestation Program ( USAP ) for Mortgage Bankers established by the Mortgage Bankers Association
of America. The 200 AUP was performed without exceptions.

 

 

	Consumer Finance Financial Services Management Team

 

 

	Consumer Finance Underwriting Overview Site processor enters in applicant’s information as well as
spouse’s information if applicable B Complete credit report is selected from batch of recent credit
requests by contract processor at headquarters Site processor will only be able to view the
financing tier that the customer has been approved for and no details of the customers credit
itself DRFS is the only entity that receives a full copy of applicant’s credit report Full
report includes the following information: Personal information m Demographics FICO score B Credit
profile containing open accounts and current debt B Recent credit inquiries Direct check listing
Available Diamond Resorts financing options

 

 

	Consumer Finance Credit Underwriting Policy I I DOWN I INTEREST I TERM FICO TIER FICO SCORE PAYMENT
% RATE % (months) 10.00 ~~ 15.9 ~ 120, 4,60 Tierl > 00 >14.99 149 120, 4,60 >24.99 119
120, 4,60 10.00 17.9 120, 4,60 Tier 2 700 — 799 > 14.99 16.9 120, 4,60 >24.99 15.9 120, 4,60
Tier 1 — 2 >699 >49.99 12.9 120, 4, 60 10.00 17.9 120, 4, 60 Tier 3 650-699 >u.99 16.9
120, 4, 60 >24.99 15.9 120, 4, 60 >14.99 17.9 120, 4,60 Tlef4 6°°-649 >24.99 ~ 15.9 —120,
4,60 TietS 575 — 599 >29.99 17.9 120, 4, 60 Tier 6 525 — 574 >49.99 17.9 120, 4, 60 Tier 7
525 100 n/a n/a For existing owners add-on, upgrade or wrap: i I 10.00 I 15.9 I 120, 4,60 Tier 1-3
>649 >14.99 14.9 120, 4, 60 >24.99 13.9 120, 4, 60

 

 

	Consumer Finance Credit Underwriting Flow Chart

 

 

	Consumer Finance Servicing History a Commenced operations late 199 Utilized Concord Loan Servicing
from 199 through end of 2003 for the following processes: Servicing software Coupon books and
year-end tax reporting Credit reporting on delinquent accounts Cash posting and lock box processing
m Other servicing functions performed by Diamond Resorts Financial Services ( DRFS ) include:
Portfolio management 1 Collections and recovery Customer service Collateral, title and
reconveyance services Investor reporting and static pool analysis Since January 2004, all
servicing functions are performed by DRFS In the past four years, DRFS has completed seven
successful loan / maintenance fee conversions

 

 

	Consumer Finance Contracts and Escrow Process Timeline

 

 

	Consumer Finance Payment Processing Overview Credit Card m Credit card payments are settled
overnight Shift 4 system completes authorization for credit card payments All payments are posted
the next business day and backdated All payments are reconciled between Atlas and Shift 4 to
Harland Discrepancies are identified and resolved daily prior to posting Internet Payments &
Check by Phone Members can make mortgage payments by accessing their personal account at
DiamondResorts.com or by speaking with a representative and paying via check by phone Payment is
settled daily through technology department Batches are created through Atlas, Shift4, or Online
Resources (check by phone) All payments are reconciled prior to posting the next business day

 

 

	Consumer Finance Payment Processing Overview Lockbox Processing Bank account collects mortgage
payments through third party lockbox (Regulus) Processed electronically for loans and download
information is available on demand Auto Debit Automated Clearing House (ACH) payments processed
daily ACH transmittals are sent electronically and are fully encrypted

 

 

	Consumer Finance Payment Processing Flow Chart

 

 

	Consumer Finance Collections Overview Collection begins at 10 days past due Past due letters are
mailed at day 10, day 30 and continue through day 90 Accounts that are 150 days past due are
forwarded to the loss mitigation team where they are sent a Notice of Default (NOD) letter and at
210 days, non-deeded property is cancelled 20 to 30 full-time collection agents are employed for
inbound and outbound collection of delinquent mortgages, maintenance fees and Club dues
Utilization of an outbound dialer places 1 ,000 calls per day while running concurrently with
inbound calls averaging 1,200 per day Individual and departmental collection efforts are supervised
Goals and standards are established for each collector Quality control program is in place
utilizing monitoring, dialer reporting and Central Management System reporting 1 On going training
is conducted to ensure compliance and quality control Multi-lingual collection capability Hours
of operation: Monday through Friday 6am -7pm, Saturday and Sunday 6am-3pm

 

 

	Consumer Finance Collections Timeline A past due notice is generated and mailed. 10 Days Past Due
Collection calls commence. A letter is sent advising that 2 payments are now 30 Days Past Due due
and payable within 7 days. Collection calls continue. A letter is sent advising the customer that
the loan 60 Days Past Due balance has been accelerated and that legal action may commence within 30
days if delinquency is not resolved. 90 Days Past Due Account is transferred to Loss Mitigation.
Default processing commences. Follow up phone 120 Days Past Due calls are conducted to encourage
customer to return DIL or initiate workout options.

 

 

	Consumer Finance Loss Mitigation Overview Loss mitigation process commences at 150 days delinquent
for deeded accounts and 120 days delinquent for non-deeded accounts Automated Deed-in-Lieu (DIL)
process 1 Follow up phone calls are conducted to encourage customer to return DIL or initiate
workout options H Full analysis of individual customer situation to determine loss mitigation
procedures

 

 

	Consumer Finance Servicing Interlinq Servicing Software Proven mortgage loan servicing solution
The John H. Harland Company has been in business since 1923, serving 1,300 financial institutions
of all types and sizes INTERLINQ systems enjoy a solid position within every lender segment,
including banks, mortgage companies, credit unions and thrifts Affordable, scalable technology m
Flexible and powerful reporting /document system using Crystal Reports User-friendly windows based
system and comprehensive online help system reduces training time and increases productivity B
Advanced loss mitigation and default tracking / reporting Regulus Retail Lockbox Processing
Market leader in retail lockbox processing Sophisticated technology: image archive internet
services, automated data delivery and a powerful remittance processing operating platform

 

 

	Consumer Finance Information Systems Atlas Leads, tours and contracts Reservations and Club
management Property management Travel administration HO A maintenance fee billing and accounts
receivable m Harland — Loan Servicing Oracle financials are automatically uploaded with Harland
information Disaster Recovery Plan » Segregated redundant servers for US and Europe Standard
daily three generation rotation back-up Equivalent of 6 months of data Back-up tapes are stored
off-site with Iron Mountain Security Centralize security methodology All systems have unique
users and require password authentication Fireproof secured server room

 

 

	Consumer Finance Harland Disaster Recovery HARLAND system backup runs on a regular schedule unless
otherwise requested Schedules are created in SQL and run daily The transaction log is replicated
(log shipping) to the back-up server every 15 minutes Instead of overriding the previous
transaction log with the latest transaction log, incremental backup occurs every 15 minutes
(cascading backup). The transaction log from the last full backup (including a full backup itself)
is kept on a separate server for recovery in the event of major failure Tapes are removed daily
and stored in a fire and heat proof safe Tapes are stored at an offsite storage facility Tapes
are archived on a monthly basis and then reused The HARLAND servers have two power supplies each
Stand-by backup is maintained at every log switch and/or at a minimum of one log switch behind
If an automated backup process fails, a manual backup command is executed

 

 

	5 Portfolio performance & Statistics

 

 

	Portfolio performance Previous Timeshare Loan Financings As of June 30, 2009 Signature Resorts
Jun-9 A-l 37,470, 66 — AAA No Change Vacation Ownership A-2 50,000,000 — A AA 199 -A ( Signature
199 -A ) A-3 12, 00,614 — BBB A+ 100,271,4 0~ Terrasun LLC Vacation Mar-99 A 52,000,000 — AAA No
Change Ownership Receivables- B 35,000,000 — A AA Backed Notes 1999-A C 13,000,000 — BBB A (
Terrasun 1999-A ) D 4,000,000 — BB BBB 104,000,000 Dutch Elm, LLC Vacation Dec-99 A 33,700,000 -
AAA No Change Ownership Receivables- B 15,000,000 — A AA Backed Notes 1999-B C 10,000,000 — BBB A (
Dutch Elm 1999-B ) 5 ,700,000 Blue Bison Conduit Dec-9 A 100,000,000 — N/A N/A Sunterra Owner Trust
2004-1 Sep-04 A 66,000,000 11,5 2,773 AAA No Change Timeshare Loan Backed Notes- B 1 ,430,000
3,234,401 AA No Change Series 2004-1 C 17,570,000 3,0 3,474 A No Change ( SOT 2004-1 ) D 49,710,000
        ,723,934 BBB No Change 151,710,000 26,624,5 2 Sunterra Owner Trust 2004-1 was rated by Fitch,
Moody’s and Standard & Poor’s. The remainder were rated only by Fitch.

 

 

	Portfolio performance & Statistics Total Servicing Portfolio Characteristics As of June 30, 2009
FICO Score N°’°f % Cu ‘M % Down Payment % N°’°f % Cu Cnt % Loans Balance Loans Balance 725+ 15,692
41% 142,937,291 42% 50% and greater 4,473 12% 27,407,427% 650-724 12,442 32% 116,594,067 34%
30-49% 2,577 7% 23,192,757 7% 575-649 6,425 17% 54,976,103 16% 20-29% 1,24 3% 14,137,973 4% 575
2,565 7% 17,045,266 5% 15-19% 2,3 9 6% 19,244,9 6% No Score 1,169 3% ,471,645 2% 10-14% 20,039 52%
152,017,999 45% TOTAL 3 ,293 100% 340,024,372 100% Less than 10% 7,567 20% 104,023,229 31% Weighted
Average FICO Score = 704 TOTAL 3 ,293 ‘ 100% 340,024,372 100% Weighted Average Down Payment =
$2,105 No. of Current No. of Current Interest Rate % % Original Maturity % % Loans Balance Loans
Balance Greater than 17.0% 2,40 6% 24,435,059 7% Greater than 1 0 Months 43 0% 559,930 0%
14.1-17.0% 19,573 51% 171,362,453 50% 120-1 0 Months 34,704 91% 325,925,347 96% 11.0-14.0% 14,5 7 3
% 139,916,23 41% Less than 120 Months 3,546 9% 13,539,095 4% Less than 11.0% 1,725 5% 4,310,622 1%
TOTAL 3 ,293 ‘ 100% 340,024,372 100% TOTAL 3 ,293 ‘ 100% 340,024,372 100% Weighted Average
Original Maturity = 121 Months Weighted Average Interest Rate = 14.9% Weighted Average Remaining
Maturity — 95 Months Interest Rate Range = 0.0 -17.9% Weighted Average Seasoning = 26 Months
NOTE: This chart is comprised of On and Off Balance Sheet mortgages receivable.

 

 

	’ Portfolio performance & Statistics FICO Score by Delinquency Status As of June 3 0,2009 NOTE:
This chart is comprised of On and Off Balance Sheet mortgages receivable.

 

 

	Portfolio performance Weighted Average FICO Score As of June 30, 2009 NOTE: This chart is comprised
of On and Off Balance Sheet mortgages receivable.

 

 

	6 Company Financials

 

 

	Company Financials Vacation Interest sales, gross 274.1 74. 73.5 1.0 64.3 293.6 54.7 273.5 I
Provision for uncollectible Vacation Interest revenue (129) (4.4) (5.0) (6.9) (34. ) (51.1) (5.4)
(52.1) I Cash Incentives (7.7) (2.2) (2.1) (2.2) (1.6) ( .1) (1.2) (7.1) I Vacation Interest, net
253.4 6 .1 66.4 71.9 27.9 234.3 4 .0 214.3 I Mgmt, member & other services 6.6 27.1 27.6 30.7 29.6
115.0 30.2 11 .1 I Interest 524 13.2 13.5 14.1 12. 53.6 11.7 52.1 I Gain on sale of mortgages
receivable 05_ 01 OJ O1 O1 0.3 01 0.3 I Net Revenues 392.9 10 .6 107.5 116. 70.4 403.2 90.0 3 4.7 I
Vacation Interest cost of sales 56.2 16.3 17.5 17.6 16.5 67.9 10.7 62.3 I Advertising, sales and
marketing 134.4 34.4 37.1 44.7 32.5 14 .7 27.1 141.4 I Vacation Interest carrying cost, net 24.3
6.6 6.1 6.5 4.7 23.9 9.0 26.2 I Management, member and other services 54.5 14. 14.4 15.4 12.3 56.9
12 54.9 I Loan portfolio .1 25 2.4 1. 2.1 .7 22 .5 I General and Administrative .5 15.1 17.1 21.5
26.4 0.0 1 .5 3.5 I Gain on sales of assets (0.1) (0.0) (0.1) (1.0) 0.1 (1.0) (0.0) (1.0) I
Depreciation and amortization 14.3 4.9 4.4 4.5 29 16.7 3.2_ 15.0 I Operating Profit 1Z9 140 .6 5.7
(27.0) 1.3 6.5 (6.1) I Cash EHTDA 113.4 35,5 30.5 27.2 (23.7) 69.6 21.1 55.1 I Adjustments 1 .6
(24.3) 1.6 2. 44.5 24.5 (6.2) 42.6 I1 Adjusted Cash EBITDA | 132.0 | 11.2 32.1 30.0 20T| 94.1 | 14
| 97.7

 

 

	7. Contact Information

 

 

	Contact Information Key Contacts — Diamond Resorts International® Diamond Resorts International®
10600 West Charleston Boulevard Las Vegas, NV 9135 David Palmer (702) 23-7400 Executive Vice
President & Chief Financial Officer David.Palmer@diamondresorts.com Dave Womer (702) 23-7350 Vice
President, Client and Loan Services David.Womer@diamondresorts.com Yanna Huang (702) 23-7490 Vice
President, Corporate Treasurer Yanna.Huang@diamondresorts.com Frank Acito (702) 23 -7420 Vice
President, Corporate Development Frank.Acito@diamondresorts.com Lisa Gann (702) 23-7450 Vice
President, Controller Lisa.Gann@diamondresorts.com Kate Gingras (702) 23-7130 Manager, Investor
Reporting & Executive Analytics Kate.Gingras@diamondresorts.com

 

 

	Thank you

 

 

	Confidential

 

 

	IMPORTANT NOTICES The securities described in these materials (the Notes ) have not been and will
not be registered under the Securities Act of 1933, as amended (the Securities Act ), or the
securities laws of any state of the United States or other jurisdiction. The Notes may not be
offered or sold within the United States or to U.S. persons, except to qualified institutional
buyers in reliance on the exemption from registration provided by Rule 144A and to certain non-U.S.
persons in offshore transactions in reliance on Regulation S. You are hereby notified that sellers
of the Notes may be relying on the exemption from the provisions of Section 5 of the Securities Act
provided by either Rule 144A or Regulation S. These materials are confidential to the recipient.
Accordingly, any attempt to copy, summarize or distribute these materials or any portion hereof in
any form to any other party without our prior written consent is prohibited. Failure to comply with
this directive may result in a violation of the Securities Act or the applicable laws of other
jurisdictions. By accessing these materials you will be deemed to agree to the foregoing.
Information contained in these materials is preliminary and incomplete and is subject to change.
Before you invest, you should read thoroughly the Offering Circular relating to the Notes in its
most current form (the Offering Circular ) for more complete information about the Issuer and the
offering. You may access the Offering Circular through the link below. Alternatively, you may
obtain a copy of the Offering Circular by contacting Credit Suisse Securities (USA) LLC, Eleven
Madison Avenue, New York, New York 10010 Attention: Asset Finance Group or by calling (212) 325-53
4. Certain terms used in these materials but not defined herein are defined in the Offering
Circular.

 

 

	DISCLAIMER The information contained in this electronic presentation (the Information ) is being
provided to you on a confidential basis solely for your review and may not be downloaded, copied,
reproduced or redistributed, in whole or in part, directly or indirectly, by you. The Information
is provided to you for informational purposes, is intended for your use only and does not
constitute a commitment, or any advice or recommendation, to enter into or conclude any transaction
(whether on the indicative terms shown or otherwise). There shall not be any offer or sale of the
Notes discussed in this communication in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities laws of any such
jurisdiction. The Information does not include all of the information required to be included in
the offering circular relating to the Notes. As such, the Information may not reflect the impact of
all structural characteristics of the Notes. The assumptions underlying the Information, including
structure and collateral, may be modified to reflect changed circumstances. THIS PRESENTATION IS
NOT INTENDED TO FURNISH LEGAL, REGULATORY, TAX, ACCOUNTING, INVESTMENT OR OTHER ADVICE TO ANY
PROSPECTIVE INVESTOR IN THE NOTES. The Information contains statements that are not purely
historical in nature, but are forward-looking statements. These include, among other things,
projections, forecasts, estimates of income, yield or return, future performance targets, sample or
pro forma portfolio structures or portfolio composition, scenario analysis, specific investment
strategies and proposed or pro forma levels of diversification or sector investment. These
forward-looking statements are based upon certain assumptions. Actual events are difficult to
predict and will be beyond the control of Diamond Resorts Corporation, the Issuer or the Initial
Purchasers or the control of their respective affiliates. Actual events are expected to differ from
those provided herein. Some important factors which could cause actual results to differ materially
from those in any forward-looking statements include the actual composition of the collateral, any
defaults on the collateral, the timing of any defaults and subsequent recoveries, changes in
interest rates and any weakening of the specific credits included in the collateral, among others.
Other risk factors are also described in the Offering Circular. Accordingly, there can be no
assurance (i) that estimated returns or projections will be realized, (ii) that forward-looking
statements will materialize or (iii) that actual results will not be materially lower than those
presented herein. The Issuer expressly disclaims any obligation or undertaking to provide any
updates or revisions to any forward looking statement to reflect any change in the Issuer’s
expectations with regard thereto or any change in events, conditions or circumstances on which any
such statement is based. The Initial Purchaser may, from time to time, participate or invest in
other financing transactions with DRC and its affiliates, perform services for or solicit business
from DRC and its affiliates, and/or have a position or effect transactions in the Notes or
derivatives thereof.

 

 

	Page DROT 2009-1 Transaction Overview 4 Breakeven Gross Default Sensitivity Analysis 12 Overview of
Diamond Resorts i) Property Management 23 ii) Sales & Marketing 25 Hi) Consumer Finance 2 iv)
Previous Timeshare Loan Financings 39 v) Summary Financial Information 41 4. Historical Static Pool
Gross Default Performance 43 Appendix DROT 2009-1 Statistical Pool Characteristics 51

 

 

	1. DROT 2009-1 Transaction Overview

 

 

	DROT 2009-1 Transaction Overview Diamond Resorts Corporation ( DRC or Diamond ) is seeking to
securitize a portion of its timeshare receivables portfolio via the Diamond Resorts Owner Trust
2009-1 (the Issuer ) transaction On the Closing Date, the Issuer would like to issue approx.
$100 million of Series 2009-1 Notes (the Notes ) collateralized by an approx. $123.5 million
timeshare loan pool — The Notes will be issued in two classes of securities: $93,000,000 Class A
Notes will be rated A by S&P $7,000,000 Class B Notes will be rated BBB+ by S&P As of the
Statistical Cut-off Date ( /31), the Statistical Pool had a weighted average seasoning of 21 months
Obligors in the Statistical Portfolio have a weighted average credit score of approx. 727,
demonstrating the strong credit quality of the loans All scored loans in the Statistical Pool have
a credit score of 600 or better Approx. 90.5% of scored loans have a credit score of 650 or
better(1) Approx. 67.5% of scored loans have a credit score of 700 or better(1) The weighted
average equity percentage of the loans in the statistical pool is 30.7% m On the closing date,
credit enhancement will be equal to 25.7% for the Class A Notes and 20.0% for the Class B Notes
(excluding excess spread) Class A Notes: 19% Overcollateralization, 5.7% Subordination, 1% Reserve
Account and excess spread Class B Notes: 19% Overcollateralization, 1% Reserve Account and excess
spread Initial annual excess spread is approx. 5.7% Wells Fargo Bank, National Association will act
as Back-Up Servicer, Indenture Trustee and Custodian (II] Approx. 2.26% of loans in the statistical
pool are not scored

 

 

	DROT 2009-1 Transaction Overview diamond resorts Summary of Transaction Structure The
Notes will amortize using a principal payment structure that is expected to result in an increasing
Overcollateralization Percentage throughout the life of the transaction — On each Payment Date
during a Non-Rapid Amortization Period: Class A Principal Distribution Amount will be equal to the
lesser of (1) the product of (a) the Class A Percentage Interest and (b) the Total Principal Amount
and (2) the then Outstanding Note Balance of the Class A Notes Class B Principal Distribution
Amount will be equal to the lesser of (1) the product of (a) the Class B Percentage Interest and
(b) the Total Principal Amount and (2) the then Outstanding Note Balance of the Class B Notes — On
each Payment Date During a Rapid Amortization Period: Class A Principal Distribution Amount will be
equal to the lesser of (1) the excess, if any, of (a) all available funds in the Collection Account
remaining after the distributions required in clauses (i) through (vii) of the Priority of
Distributions over (b) the amount, if any, by which the Reserve Account Required Balance on such
Payment Date is greater than the amount on deposit in the Reserve Account and (2) the then
Outstanding Note Balance of the Class A Notes Class B Principal Distribution Amount will be equal
to the lesser of (1) the excess, if any, of (a) all available funds in the Collection Account
remaining after the distributions required in clauses (i) through (viii) of the Priority of
Distributions over (b) the amount, if any, by which the Reserve Account Required Balance on such
Payment Date is greater than the amount on deposit in the Reserve Account and (2) the then
Outstanding Note Balance of the Class B Notes Each Class’ Percentage Interest is equal to (i) the
Outstanding Note Balance of such Class of Notes divided by (ii) the Aggregate Outstanding Note
Balance — On the Closing Date, the Class A Percentage Interest is 93% and the Class B Percentage
Interest is 7% Confidential credit suisse 6

 

 

	DROT 2009-1 Transaction Overview Summary of Transaction Structure The Required
Overcollateralization Amount remains constant throughout the life of the transaction and is equal
to the product of (i) 19% and (ii) the Aggregate Loan Balance as of the Cut-Off Date A Rapid
Amortization Period will begin on a Determination Date if any of the following occur: Average of
Default Percentages for the three immediately preceding Due Periods is greater than 0.75%(1)
Aggregate Default Rate exceeds 20.0% Overcollateralization Amount is less than the Required
Overcollateralization Amount for the two immediately preceding Payment Dates The Seller will be
required to repurchase/substitute any timeshare loans that have breached any of the representations
and warranties in connection with the closing of the transaction and will also have the option to
repurchase/substitute any Defaulted Loans (up to allowable limit) (1) If fewer than three Due
Periods have elapsed, a Rapid Amortization Period will begin on any Determination Date if the
average of the Default Percentages for the actual number of Due Periods which have elapsed is
greater than 0.75%. Confidential CREDITSUISSE 7

 

 

	DROT 2009-1 Transaction Overview diamond resorts Priority of Payments Summary On each
Payment Date, available funds in the Collection Account and the Reserve Account will be used to
make the following payments: i. To the Indenture Trustee and Custodian, the monthly Indenture
Trustee Fee and Custodial Fee, and certain expenses incurred by the Indenture Trustee and
Custodian; ii. To the Back-Up Servicer, the Back-Up Servicing Fee and unpaid Back-Up Servicing Fees
(as well as transition expenses incurred by the Back-Up Servicer in connection with transferring
the servicing, if any); Hi. To the Owner Trustee, the Owner Trustee Fee and certain expenses
incurred by the Owner Trustee; iv. To the Administrator, the Administrator Fee and certain expenses
incurred by the Administrator; v. To the Servicer, the Servicing Fee, and certain expenses incurred
by the Servicer; vi. To the Class A Noteholders, the Class A Interest Distribution Amount; vii. To
the Class B Noteholders, the Class B Interest Distribution Amount; viii. To the Class A
Noteholders, the Class A Principal Distribution Amount; ix. To the Class B Noteholders, the Class B
Principal Distribution Amount; x. To the Reserve Account, all the remaining amounts until the
Reserve Account equals the Reserve Account Required Balance; xi. To the Class A Noteholders and
Class B Noteholders, in that order, reimbursement of any unreimbursed Note Balance Write-Down
Amounts applied on prior Payment Dates plus interest at the Note Rate on such unreimbursed Note
Balance Write-Down Amounts; xii. To the Back-Up Servicer, any expenses not paid in (ii) above xiii.
To the Seller, any remaining amounts Confidential credit suisse

 

 

	DROT 2009-1 Transaction Overview diamond resorts Summary of Transaction Credit Enhancement
Reserve Account Mechanics Subordination 5.7% N/A Initial Overcollateralization 19.0% 19.0% Reserve
Account 1.0% 1-0 Total Credit Enhancement (excl. Excess Spread) 257% 20.0% Initial Annual
Excess Spread (approx.) 5.7% 5.7% Initial deposit into the Reserve Account equal to 1.00% of the
Initial Cut-Off Date Aggregate Loan Balance If no Cash Accumulation Event or Rapid Amortization
Period is occurring, the Reserve Account Required Balance is equal to 1.00% of the Aggregate Loan
Balance If a Cash Accumulation Event is occurring but no Rapid Amortization Period is in effect,
the Reserve Account Required Balance is equal to the product of (A) the Aggregate Loan Balance and
(B) the greater of (x) 15.0% or (y) 2 times the Delinquency Ratio for such Due Period During a
Rapid Amortization Period, the Reserve Account Required Balance is equal to the Reserve Account
Floor Amount — Reserve Account Floor Amount equal to lesser of (i) 0.25% of the Initial Note
Balance of the Notes and (ii) 50% of the Aggregate Outstanding Note Balance on such Payment Date A
Cash Accumulation Event will occur on any Determination Date the average of the Delinquency Levels
for the three immediately preceding Due Periods is greater than 7.0% Confidential CREDITSUISSE 9

 

 

	DROT 2009-1 Transaction Overview diamond resorts Summary Terms Issuer: Diamond Resorts
Owner Trust 2009-1 Servicer: Diamond Resorts Financial Services, Inc. ( DRFS ) Back-Up Servicer:
Wells Fargo Bank, National Association Indenture Trustee/Custodian: Wells Fargo Bank, National
Association Seller: Diamond Resorts Seller 2009-1 LLC Amount of Offered Notes Class A Notes:
$93,000,000 Class B Notes: $7,000,000 Rating of the Notes (S&P) Class A Notes: A Class B Notes:
BBB+ Issuance via Rule 144A and Regulation S Credit Enhancement Class A Notes: 19%
Overcollateralization, 5.7% Subordination, 1% Reserve Account & excess spread Class B Notes: 19%
Overcollateralization, 1% Reserve Account & excess spread Initial annual excess spread is approx.
5.7% Optional repurchase / substitution of Defaulted Loans by the Seller Confidential
CREDITSUISSE

 

 

	DROT 2009-1 Transaction Overview diamond resorts Issuance Details Initial Note Balance
$93,000,000 $7,000,000% of Initial Cut-off Date Agg. Loan Balance 75.3% 5.7% Regulatory Status
144A / Reg S 144A / Reg S Expected Ratings (S&P) A BBB+ Pricing Benchmark Swaps Swaps Interest Type
Fixed Rate Fixed Rate Interest Accrual Method 30 / 360 30 / 360 Stated Maturity March 2026 March
2026 Weighted Average Life to Optional Redemption (years)(1) 2.19 2.19 Weighted Average Life to
Maturity (years)(1) 2.27 2.27 Principal Window to Optional Redemption (months)(1) 1-51 1 — 51
Principal Window to Maturity (months)(1) 1-65 1-65 Distribution Frequency Monthly Monthly Payment
Date 20th or next business day 20th or next business day First Payment Date October 20, 2009
October 20, 2009 (1) Assumes 15% CPR pricing speed to a 15% Optional Redemption Confidential
CREDITSUISSE

 

 

	2. Breakeven Gross Default Sensitivity Analysis Confidential CREDITSUISSE

 

 

	Breakeven Gross Default Sensitivity Analysis Breakeven Cumulative Gross Default Analysis (% of
Initial Cut-off Date Agg. Loan Balance) Class A Notes Prepayment Speed includes voluntary
prepayments and upgrades Results based on GDI file provided to investors Confidential 13

 

 

	Breakeven Gross Default Sensitivity Analysis Breakeven Cumulative Gross Default Analysis (% of
Initial Cut-off Date Agg. Loan Balance) Class B Notes Prepayment Speed includes voluntary
prepayments and upgrades Results based on GDI file provided to investors Confidential 14

 

 

3. Overview of Diamond Resorts

Confidential 15

 

 

	Overview of Diamond Resorts diamond resorts Diamond is one of the largest vacation
ownership companies in the world with more than 160 branded and affiliated resorts and over 24,000
guest beds in 26 countries — Resort locations throughout the continental United States, Hawaii,
Canada, Mexico, the Caribbean, Europe, Asia, Australia, and Africa — Nearly 1.4 million owners,
members and guests enjoy Diamond’s branded hospitality experience each year In April 2007, Diamond
acquired Sunterra Corporation in a transaction valued at approx. $700 million Financed through
contributions of cash, other assets and borrowings under senior credit facilities After the
acquisition, Diamond launched a global re-branding initiative designed to consistently provide the
highest standards of satisfaction, hospitality and guest experiences throughout all of its resorts
Diamond is uniquely positioned within the timeshare industry to succeed in today’s environment -
Diamond has access to a captive membership base of more than 400,000 owner families, which
currently ranks second in the industry — Each owner purchases points, generally in week-equivalent
blocks, entitling them to the use of a property within the Diamond system for a specific length of
time Diamond has a large paid-off owner base with approx. 360,000 of its owner families owning
their vacation interest outright without a loan from Diamond (approx. 90% of its total membership
base) Capital-light business model with strong focus on the stable and profitable resort
management business Very conservative sales volume budgeted — consistent with expected annual
recapture of inventory No new development CapEx needed or planned as Diamond currently has approx.
2-3 years of inventory based on current sale-through rates (all inventory owned by Diamond — no A&D
financings) Confidential CREDITSUISSE

 

 

	Overview of Diamond Resorts diamond resorts Diamond Resorts’ Trust Based Club Vacation
interests from sites within the system are held in trust Customers purchase a certain number of
points from a common homogenized vacation interests pool (not site specific) Owners are entered
into a Registry of Members Owners receive a Certificate of Points Owners receive an insurance
title policy for the amount of purchase from First American Title Insurance Company (FATCO) Assures
points are backed by actual vacation interests Assures no liens or encumbrances on vacation
interests held by the trust FATCO monitors as trustee Owners are automatically members of THE
Club® Confidential CREDITSUISSE 17

 

 

	Overview of Diamond Resorts Well Positioned Among Branded Players Diamond Resorts 2009 average
unit-equivalent selling price in North America: $25,9 6

	Confidential 1

 

 

	Overview of Diamond Resorts Key Business Areas Vacation Interest Sales
Confidential 19

 

 

	Overview of Diamond Resorts A Market Leader — Owner Families Scurce: Company reports and industry
websites

	Confidential 20

 

 

	Overview of Diamond Resorts worldwide resort destinations
Confidential 21

 

 

	Overview of Diamond Resorts worldwide resort destinations
Confidential 22

 

 

	3. Overview of Diamond Resorts i) Property Management
Confidential 23

 

 

	Property Management diamond resorts Overview One of the largest vacation ownership
resort property management companies in the world Builds brand awareness and ensures seamless
delivery of brand values Professional services offering entails: Association management Inventory
yield management, rental programs and reservations Accounting and treasury A profitable business
that supports vacation interest sales In 200 , Diamond renegotiated and modified its resort
management contracts resulting in an increase in annual cashflow of approx. $2 million in 2009 and
an additional $7 million annually in 2010 Contracts are typically 3-5 years in term with evergreen
clauses built in Generally, contracts provide revenue of cost plus 15% to Diamond Resorts and allow
for the full recovery of shared corporate expenses Diamond manages approx. $325 million of annual
HOA costs globally, resulting in management fee income of approx. $50 million in 2009
Stable/predictable and contractual source of revenue Confidential credit suisse 24

 

 

	3. Overview of Diamond Resorts ii) Sales & Marketing
Confidential 25

 

 

	Sales & Marketing diamond resorts Overview Diamond Resorts deploys various strategic
marketing channels which consist of: In-house Outside public contacts ( OPC ) Mini-vacations Tour
vendors Owner referral Trial programs Telemarketing tours The company markets and sells Vacation
Interests in Vacation Points — Vacation Points consist of Vacation Interest ownership on a float
unit/float season structure conveyed as an undivided interest Potential members may purchase
Vacation Interests through an experienced sales force located on premise at select resorts, several
off-site sales centers and through call centers worldwide Members can also utilize their Vacation
Points as currency for services such as airline tickets, miles, and cruises Confidential credit
suisse 26

 

 

	Sales & Marketing 2009 Sales Statistics (As of June 30, 2009)
Confidential 27

 

 

	3. Overview of Diamond Resorts iii) Consumer Finance
Confidential 2

 

 

	Consumer Finance diamond resorts Functions and Responsibilities DRFS is a vertically
integrated consumer finance servicer Key functions include: Credit Underwriting — Reconveyance
Price Compliance — Mortgage Servicing for US Resorts Contract Origination — Collections and
Recovery Title & Collateral Services — Resort Maintenance Fee Collection Escrow Processing -
Customer Service Sales/Inventory — Investor Reporting Portfolio Data Analyses Agreed upon
procedures ( AUP ) are performed annually by an independent public accounting firm on the
Servicer’s servicing controls and procedures as identified in the Uniform Single Attestation
Program ( USAP ) for Mortgage Bankers established by the Mortgage Bankers Association of America.
The 200 AUP was performed without exceptions Confidential credit suisse

 

 

	Consumer Finance diamond resorts Underwriting Overview Site processor enters in
applicant’s information as well as spouse’s information, if applicable Complete credit report is
selected from batch of recent credit requests by contract processor at headquarters m Site
processor will only be able to view the financing tier (see next page) that the customer has been
approved for and no details of the customer’s credit itself DRFS is the only entity that receives a
full copy of applicant’s credit report Full report includes the following information: Personal
information Demographics FICO score Credit profile containing open accounts and current debt Recent
credit inquiries Direct check listing Available Diamond financing options Confidential credit
suisse

 

 

	Consumer Finance Current DRFS Risk-Based Pricing Matrix DOWN INTEREST TERM FICO TIER FICO SCORE
PAYMENT % RATE % (months) 10.00 15.9 120, 4, 60 Tierl > 00 >14.99 R9 120, 4,60 >24.99 119
120, 4,60 10.00 17.9 120, 4,60 ~ Tier 2 700-799 >14.99 16.9 120, 4, 60 >24.99 15.9 120, 4, 60
Tier 1 — 2 >699 >49.99 12.9 120, 4, 60 10.00 17.9 120, 4, 60 Tier 3 65° 6 >14.99 16.9
120, 4, 60 >24.99 15.9 120, 4, 60 . . ,nn ,An >14.99 17.9 120, 4,60 Tl 4 6°°-649 >24.99
15.9 mi 4! 60 TierS 575 — 599 >29.99 17.9 120, 4, 60 Tier 6 525 — 574 >49.99 17.9 120, 4, 60
Tier 7 | 525 | 100 | n/a | n/a For existing owners add-on, upgrade or wrap: I I 10.00 I 15.9 I 120,
4,60 Tier 1-3 >649 >14.99 149 120, 4, 60 I >24.99 | 13.9 120, 4,60 Confidential 31

 

 

	Consumer Finance Historical Weighted Average FICO Score of DRFS’ Servicing Portfolio Note: This
chart is comprised of On and Off Balance Sheet mortgages receivable.

	Confidential 32

 

 

	Consumer Finance diamond resorts Servicing History Commenced operations in late 199
Utilized Concord Loan Servicing from 199 through end of 2003 for the following processes: Servicing
software Coupon books and year-end tax reporting Credit reporting on delinquent accounts Cash
posting and lock box processing Other servicing functions performed by DRFS include: Portfolio
management Collections and recovery Customer service Collateral, title and reconveyance services
Investor reporting and static pool analysis Since January 2004, all servicing functions have been
performed by DRFS As of June 30, 2009, DRFS’s total servicing portfolio was comprised of approx.
42,200 timeshare loans with an aggregate outstanding loan balance equal to approx. $364 million
Confidential credit suisse 33

 

 

	Consumer Finance Siauaw diamond resorts Payment Processing Overview Members can make
mortgage payments by accessing their personal account at DiamondResorts.com, sending a check, or by
speaking with a representative and paying via check by phone or credit card Lockbox Processing
Bank account collects mortgage payments through third party lockbox (Regulus) Processed
electronically for loans and download information is available on demand Auto Debit Automated
Clearing House (ACH) payments processed daily ACH transmittals are sent electronically and are
fully encrypted Credit Card Credit card payments are settled overnight Shift 4 system completes
authorization for credit card payments All payments are posted the next business day and backdated
All payments are reconciled between Atlas and Shift 4 to Harland Discrepancies are identified and
resolved daily prior to posting Internet Payments & Check by Phone Payment is settled daily
through technology department Batches are created through Atlas, Shift4, or Online Resources (check
by phone) All payments are reconciled prior to posting the next business day Confidential
credit suisse

 

 

	Consumer Finance diamond resorts Collections Overview Collection begins at 10 days past
due Past due letters are mailed at day 10, day 30, day 60 and continue as appropriate Accounts that
are 90 days past due are forwarded to the loss mitigation team for full reinstatement, work
out/payment plan or mutual release/deed in lieu of foreclosure Accounts that are 120 days past due
are sent a Notice of Default and then the Servicer commences default processing 20 to 30 full-time
collection agents are employed for inbound and outbound collection of delinquent mortgages,
maintenance fees and Club dues Utilization of an outbound dialer places 1 ,000 calls per day while
running concurrently with inbound calls averaging 1,200 per day Individual and departmental
collection efforts are supervised Goals and standards are established for each collector h
Quality control program is in place utilizing monitoring, dialer reporting and Central
Management System reporting On going training is conducted to ensure compliance and quality control
Multi-lingual collection capability Hours of operation: Monday through Friday 6am -7pm, Saturday
and Sunday 6am-3pm Confidential credit suisse 35

 

 

	Consumer Finance Collections Timeline 10 Days Past Due A past due notice is generated and mailed.
Collection calls commence. 30 Days Past Due A letter is sent advising that 2 payments are now due
and payable within 7 days. Continue collection calls. 60 Days Past Due A letter is sent advising
the customer that the loan balance has been accelerated and that legal action may commence within
30 days if delinquency is not resolved. 90 Days Past Due Account is transferred to Loss Mitigation
120 Days Past Due Default processing commences. Follow up phone calls are conducted to encourage
customer to return DIL or initiate workout options. Confidential credit suisse 36

 

 

	Consumer Finance diamond resorts Servicing Software and Logistics Interlinq Servicing
Software Proven mortgage loan servicing solution The John H. Harland Company has been in business
since 1923, serving 1,300 financial institutions of all types and sizes INTERLINQ systems enjoy a
solid position within every lender segment, including banks, mortgage companies, credit unions and
thrifts Affordable, scalable technology Flexible and powerful reporting /document system using
Crystal Reports User-friendly windows based system and comprehensive online help system reduces
training time and increases productivity Advanced loss mitigation and default tracking / reporting
Regulus Retail Lockbox Processing Market leader in retail lockbox processing — Sophisticated
technology: image archive internet services, automated data delivery and a powerful remittance
processing operating platform Confidential credit suisse 37

 

 

	Consumer Finance diamond resorts Information Systems Atlas Leads, tours and contracts
Reservations and The Club management Property management Travel administration HOA maintenance fee
billing and accounts receivable Harland — Loan Servicing — Oracle financials are automatically
uploaded with Harland information Disaster Recovery Plan Segregated redundant servers for US and
Europe Standard daily three generation rotation back-up Equivalent of 6 months of data Back-up
tapes are stored off-site with Iron Mountain m Security Centralized security methodology All
systems have unique users and require password authentication Fireproof secured server room
Confidential credit suisse

 

 

	3. Overview of Diamond Resorts iv) Previous Timeshare Loan Financings
Confidential 39

 

 

	Previous Timeshare Loan Financings Diamond Resorts has completed four securitizations of its
receivable portfolios Signature Resorts Jun-9 A-l $37,470, 66 $ — AAA No Change Vacation
Ownership A-2 50,000,000 — A AA 199 -A ( Signature 199 -A ) A-3 12, 00,614 — BBB A+ $100,271,4 0 $
- TerrasunLLC Vacation Mar-99 A $52,000,000 $ — AAA No Change Ownership Receivables — Backed
Notes 1999-A B 35,000,000 — A AA ( Terrasun 1999-A ) C 13,000,000 — BBB A D 4,000,000 — BB BBB $
104,000,000 $ — Dutch Elm, LLC Vacation A $33,700,000 $ — AAA No Change Ownership Receivables -
Backed Notes 1999-B Dec-99 B 15,000,000 — A AA ( Dutch Elm 1999-B ) C 10,000,000 — BBB A $5
        ,700,000 $ — Sunterra Owner Trust 2004-1 Sep-04 A $66,000,000 $10,603,343 AAA No Change
Timeshare Loan Backed Notes — Series 2004-1 B 1 ,430,000 2,960,903 AA No Change ( SOT 2004-1 ) C
17,570,000 2, 22,73 A No Change D 49,710,000 7,9 6,245 BBB No Change $151,710,000 $24,373,229
Sunterra Owner Trust 2004-1 was rated by Fitch, Moody’s and Standard & Poor’s. The remainder were
rated only by Fitch. Confidential credit suisse

 

 

	3. Overview of Diamond Resorts v) Summary Financial Information
Confidential 41

 

 

	Summary Financial Information Vacation Interest sales, gross $274.1 $74. $73.7 $1.2 $64.6 $294.3
$54.5 $5 .6 $25 .9 Provision for uncollectible Vacation Interest revenue (12.9) (4.4) (5.0) (6.9)
(34. ) (51.2) (5.4) (1.5) (4 .6) Cash incentives (7.7) (2.2) (2.3) (2.4) (1.9) ( .9) (1.2) (0.5)
(6.1) Vacation Interest, net 253.4 6 .1 66.4 71.9 27.9 234.3 47. 56.6 204.2 Mgmt, member & other
services 6.6 26.6 2 .0 30.4 29.2 114.2 30.1 40. 130.6 Interest 52.4 13.2 13. 14.1 12. 53.9 11.7
11.0 49.7 Gain on the sale of mortgages receivable 0.5 0.1 0.1 0.1 0.1 0.3 0.1 0.1 0.3 Net Revenues
392.9 10 .0 10 .2 116.5 70.0 402.7 9. 10 .4 3 4.7 Vacation Interest cost of sales 56.2 16.3 17.2
17.6 16.5 67.6 10.7 12.6 57.4 Advertising, sales and marketing 134.4 34.4 36. 44. 32.5 14 .6 27.1
27.2 131.7 Vacation Interest carrying cost, net 24.3 6.1 6.3 5. 4.7 22. .6 7.1 26.2 Management,
member and other services 55.9 15.1 15.2 16.0 12.7 59.0 13.1 13.9 55.7 Loan portfolio .1 2.5 2.4 1.
2.1 . 2.2 2.6 . General and administrative 7.0 14.7 17.7 21.0 25.4 7 .7 1 .1 17.2 1.7 Gain on sales
of assets (0.1) (0.0) (0.0) (0.7) 0.3 (0.4) (0.0) 0.0 (0.4) Depreciation and amortization 14.3 4.9
4.4 4.6 2. 16.7 3.2 3.4 14.1 Operating Profit 12. 14.0 .3 5.6 (26.9) 1.1 6.6 24.3 9.6 CashEBITDA
113.4 35.5 30.0 27.4 (23.4) 69.6 21.1 41.0 66.1 Adjustments 1 .6 (24.3) 1.6 2. _ 44.5 24.5 (6.2)
(12.6) 2 .4 Consolidated EBITDA $132.0 $11.2 $31.6 $30.2 $21.1 $94.1 $14. $2 .5 $94.5
Confidential 42

 

 

	4. Historical Static Pool Gross Default Performance Confidential 43

 

 

	Static Pool Cumulative Gross Default Analysis Static Pool Cumulative Gross Defaults (No Recoveries)
Weighted average FICO score for obligors in the DROT 2009-1 Statistical Pool is 727 Confidential
credit suisse 44

 

 

	Static Pool Cumulative Gross Default Analysis Static Pool Cumulative Gross Defaults (No Recoveries)
Obligors that have a FICO score of 00 and above represent 9.3% of the DROT 2009-1 Statistical Pool
Confidential credit suisse 45

 

 

	Static Pool Cumulative Gross Default Analysis Static Pool Cumulative Gross Defaults (No Recoveries)
Obligors that have a FICO score of 750 -799 represent 2 .3% of the DROT 2009-1 Statistical Pool
Confidential credit suisse 46

 

 

	Static Pool Cumulative Gross Default Analysis Static Pool Cumulative Gross Defaults (No Recoveries)
Obligors that have a FICO score of 700 — 749 represent 2 .4% of the DROT 2009-1 Statistical Pool
Confidential credit suisse 47

 

 

	Static Pool Cumulative Gross Default Analysis Static Pool Cumulative Gross Defaults (No Recoveries)
Obligors that have a FICO score of 650 — 699 represent 22.6% of the DROT 2009-1 Statistical Pool
Confidential credit suisse 4

 

 

	Static Pool Cumulative Gross Default Analysis Static Pool Cumulative Gross Defaults (No Recoveries)
Obligors that have a FICO score of 600 — 649 represent 9.3% of the DROT 2009-1 Statistical Pool
Confidential credit suisse 49

 

 

	Static Pool Cumulative Gross Default Analysis Static Pool Cumulative Gross Defaults (No Recoveries)
Approx. 2.3% of the loans in the DROT 2009-1 Statistical Pool are not scored Confidential
credit suisse 50

 

 

	Appendix A. DROT 2009-1 Statistical Pool Characteristics Confidential 51

 

 

	DROT 2009-1 Statistical Pool Characteristics Summary of Statistical Pool Characteristics as of the
Statistical Cut-Off Date Aggregate Loan Balance $123,446,534 Range of Loan Balances $257 to $75,5 0
Average Loan Balance $10,755 Range of Coupon Rates .40% to 17.90% Weighted Average Coupon Rate
14.97% Range of Original Terms 24 to 1 0 months Weighted Average Original Term 121 months Range of
Obligor Equity at Closing 10.00% to 99.44% Weighted Average Obligor Equity at Closing 30.69% Range
of Remaining Months to Maturity 1 to 174 months Weighted Average Remaining Months to Maturity 100
months Range of Seasoning 0 to 167 months Weighted Average Seasoning 21 months Range of Credit
Scores (1) 600 to 44 Weighted Average Credit Score (1) 727 Mortgage Loans 14.54% Points-Based Loan
5.46% Domestic Obligors 96.64% Foreign Obligors 3.36% (1) Approximately 2.26% of the loans in the
statistical portfolio are not scored
Confidential 52

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Coupon Rate Percentage of
Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off Cut-Off Date Aggregate
Coupon Rate Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan Balance (%) .001-9.000 9 0.0
% $31,696 0.03% 9.001 — 10.000 16 0.14 52,623 0.04 10.001-11.000 67 0.5 346,942 0.2 11.001-12.000
199 1.73 1,27 ,395 1.04 12.001 — 13.000 609 5.31 4,716,713 3. 2 13.001 — 14.000 4,239 36.93 4
        ,454,109 39.25 14.001-15.000 1,956 17.04 20,791,512 16. 4 15.001 — 16.000 3,222 2 .07 35,01 ,961 2
        .37 16.001-17.000 195 1.70 1,960,595 1.59 17.001 — 1 .000 966 .42 10,794,9 7 .74 Total: 11.47
100.00% $123,446.534 100.00% Original Term to Maturity Percentage of Percentage of Statistical
Number Statistical Cut-Off Statistical Cut-Off Cut-Off Date Aggregate Original Term Timeshare Loans
Date Loans (%) Date Loan Balance ($) Loan Balance (%) 13-24 9 0.0% $31,696 0.03% 49-60 0.77
451,390 0.37 73- 4 571 4.97 3,143,913 2.55 109-120 10,413 90.72 114,435,034 92.70 169- 1 0 397 3.46
5,3 4,500 4.36 Total: 11,47 100.00% $123,446,534 100.00% Confidential credit suisse 53

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Remaining Term to Maturity
Percentage of Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off Cut-Off Date
Aggregate Remaining Term Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan Balance (%) 0-12
371 3.23% $471,532 0.3% 13-24 397 3.46 1,291,047 1.05 25-36 332 2. 9 2,05 ,230 1.67 37-4 170 1.4
1,22 ,620 1.00 49-60 150 1.31 99 , 11 0. 1 61-72 425 3.70 3,922, 53 3.1 73- 4 1,367 11.91 13,4
5,561 10.92 5-96 1,941 16.91 21,270,497 17.23 97-10 2,451 21.35 31,014,510 25.12 109-120 3,497
30.47 42,4 6,209 34.42 121 — 132 6 0.05 65, 90 0.05 133-144 7 0.06 90, 76 0.07 145-156 0.07 20 ,009
0.17 157-16 330 2. 4,532,179 3.67 169-1 0 26 0.23 321,709 0.26 Total: 11,47 100.00% $123,446,534
100.00% Loan Type Percentage of Percentage of Statistical Number Statistical Cut-Off Statistical
Cut-Off Cut-Off Date Aggregate Type Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan
Balance (%) Mortgage 1, 2 15.93% $17,951,942 14.54% Points 9,650 4.07 105,494,592 5.46 Total: 11,47
100.00% $123,446,534 100.00% Confidential credit suisse 54

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Seasoning Percentage of
Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off Cut-Off Date Aggregate
Seasoning Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan Balance (%) 0-12 3,954 34.45%
$4 ,541,043 39.32% 13-24 2,633 22.94 32,722,557 26.51 25-36 1,913 16.67 20,711,3 1 16.7 37-4 1,372
11.95 13,305,410 10.7 49-60 600 5.23 4, 50,174 3.93 61-72 2 2 2.46 1,373,0 0 1.11 73- 4 167 1.45
637, 76 0.52 5-96 7 0.76 399,344 0.32 97-10 220 1.92 610,364 0.49 109-120 243 2.12 266,11 0.22
121-132 2 0.02 11, 39 0.01 145-156 3 0.03 14,342 0.01 157- 16 2 0.02 3,006 0.00 Total: 11.47
100.00% $123,446,534 100.00% Confidential credit suisse 55

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Credit Score Percentage of
Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off Cut-Off Date Aggregate
Credit Score Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan Balance (%) Not Available
309 2.69% $2,792,054 2.26% 600-649 1,0 9 9.49 11,421,419 9.25 650-699 2,590 22.56 27, 47,406 22.56
700-749 3,215 2 .01 34,999,793 2 .35 750-799 3,170 27.62 34,966,437 2 .33 00 — 50 1,105 9.63
11,419,424 9.25 Total: 11,47 100.00% $123,446,534 100.00% Original Loan Balance Percentage of
Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off Cut-Off Date Aggregate
Original Loan Balance Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan Balance (%)
0.01-5,000.00 544 4.74% $1,923,494 1.56% 5,000.01 — 10,000.00 4,34 37. 2 ,760,950 23.30
10,000.01-15,000.00 3,514 30.62 35,944,165 29.12 15,000.01-20,000.00 1,62 14.1 23,5 3,166 19.10
20,000.01-25,000.00 7 9 6. 7 14,912,62 12.0 25,000.01-30,000.00 373 3.25 ,7 2,061 7.11
30,000.01-35,000.00 146 1.27 4,246,265 3.44 35,000.01-40,000.00 63 0.55 2,102,651 1.70
40,000.01-45,000.00 30 0.26 1,14 ,652 0.93 45,000.01-50,000.00 17 0.15 695,541 0.56 50,000.01 -
55,000.00 9 0.0 420,904 0.34 55,000.01 — 60,000.00 7 0.06 370,075 0.30 60,000.01-65,000.00 6 0.05
329,191 0.27 70,000.01 — 75,000.00 1 0.01 3,934 0.00 75,000.01 — 0,000.00 3 0.03 222, 55 0.1 Total:
11,47 100.00% $123,446,534 100.00% Confidential credit suisse

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Purchase Price Percentage of
Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off Cut-Off Date Aggregate
Purchase Price Timesnare Loans Date Loans (%) Date Loan Balance ($) Loan Balance (%) 0.01-5,000.00
191 0.17% $599,470 0.49% 5,000.01-10,000.00 2,409 20.99 14,461,951 11.72 10,000.01 — 15,000.00
3,239 2 .22 27, 04,596 22.52 15,000.01-20,000.00 2,077 1 .10 22,951,541 1 .59 20,000.01-25,000.00
1,356 11. 1 17,493,7 9 14.17 25,000.01-30,000.00 75 7.62 13,393,155 10. 5 30,000.01 — 35,000.00 533
4.64 ,933,491 7.24 35,000.01-40,000.00 327 2. 5 6,426,912 5.21 40,000.01-45,000.00 16 1.46 3,4
5,719 2. 2 45,000.01-50,000.00 102 0. 9 2,192,6 0 1.7 50,000.01-55,000.00 60 0.52 1,495, 15 1.21
55,000.01-60,000.00 46 0.40 1,041,555 0. 4 60,000.01 — 65,000.00 29 0.25 750,505 0.61 65,000.01 -
70,000.00 16 0.14 544,200 0.44 70,000.01-75,000.00 15 0.13 449,203 0.36 75,000.01 — 0,000.00 0.07
330,709 0.27 0,000.01 — 5,000.00 0.07 319,61 0.26 Greater than 5,000.00 19 0.17 771,625 0.63 Total:
11,47 100.00% $123,446,534 100.00% Confidential credit suisse

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Statistical Cut-Off Date Loan
Balance Percentage of Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off
Cut-Off Date Aggregate Current Balance Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan
Balance (%) 0.01-5,000.00 1,666 14.51% $5,200,470 4.21% 5,000.01-10,000.00 4,712 41.05 35,941,5 1
29.12 10,000.01 — 15,000.00 2, 75 25.05 35,101,590 2 .43 15,000.01-20,000.00 1,254 10.93 21,443,240
17.37 20,000.01-25,000.00 546 4.76 12,130,955 9. 3 25,000.01-30,000.00 224 1.95 6,092,491 4.94
30,000.01-35,000.00 106 0.92 3,417,677 2.77 35,000.01-40,000.00 47 0.41 1,74 ,539 1.42
40,000.01-45,000.00 22 0.19 937,951 0.76 45,000.01-50,000.00 10 0.09 4 0,2 2 0.39 50,000.01 -
55,000.00 7 0.06 367,996 0.30 55,000.01-60,000.00 2 0.02 115,347 0.09 60,000.01 — 65,000.00 4 0.03
245,560 0.20 70,000.01-75,000.00 2 0.02 147,275 0.12 75,000.01 — 0,000.00 1 0.01 75,5 0 0.06 Total:
11,47 100.00% $123,446,534 100.00% Obligor Equity % Percentage of Percentage of Statistical Number
Statistical Cut-Off Statistical Cut-Off Cut-Off Date Aggregate Obligor Equity Timeshare Loans Date
Loans (%) Date Loan Balance ($) Loan Balance (%) 10.00-19.99 4,012 34.95% $47,9 0, 95 3 . 7%
20.00-29.99 2,511 21. 30,335,36 24.57 30.00-39.99 1,064 9.27 13,462, 45 10.91 40.00-49.99 670 5. 4
        ,754,001 7.09 50.00-59.99 75 7.62 9,314, 70 7.55 60.00-69.99 72 7.60 7,172,327 5. 1 70.00-79.99 79
6.95 4,5 5,392 3.71 0.00- 9.99 411 3.5 1,566,124 1.27 90.00 — 99.99 265 2.31 274,711 0.22 Total:
11,47 100.00% $123,446,534 100.00% Confidential CREDITSUISSE 5

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Geographic Location of
Obligor Percentage of Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off
Cut-Off Date Aggregate Obligor State Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan
Balance (%) Alabama 54 0.47% $525,567 0.43% Alaska 3 0.33 410,3 1 0.33 Arizona 1,234 10.75
13,952,960 11.30 Arkansas 6 0.75 902,390 0.73 California 2,7 3 24.25 31,009,211 25.12 Colorado 15
1.3 1,731,033 1.40 Connecticut 79 0.69 44,245 0.6 Delaware 33 0.29 306,61 0.25 District of Columbia
15 0.13 155,407 0.13 Florida 519 4.52 5,301,032 4.29 Georgia 219 1.91 2,1 4,6 9 1.77 Guam 2 0.02
15,650 0.01 Hawaii 27 0.24 304,715 0.25 Idaho 41 0.36 4 1,161 0.39 Illinois 339 2.95 3,425,214 2.77
Indiana 146 1.27 1,566,134 1.27 Iowa 7 0.76 95 ,4 4 0.7 Kansas 9 0.7 961,655 0.7 Kentucky 1 0.71
902,945 0.73 Louisiana 6 0.59 632,457 0.51 Maine 2 0.24 313,113 0.25 Maryland 321 2. 0 3,319,615
2.69 Massachusetts 116 1.01 1,211,692 0.9 Michigan 214 1. 6 2,340,544 1.90 Military Address 17 0.15
253,6 4 0.21 Minnesota 131 1.14 1,305,462 1.06 Mississippi 31 0.27 310,617 0.25 Missouri 227 1.9
2,376,079 1.92 Confidential CREDITSUISSE 59

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Geographic Location of
Obligor (cont.) Percentage of Percentage of Statistical Number Statistical Cut-Off Statistical
Cut-Off Cut-Off Date Aggregate Obligor State Timeshare Loans Date Loans (%) Date Loan Balance ($)
Loan Balance (%) Montana 19 0.17 223,6 2 0.1 Nebraska 41 0.36 3 2,761 0.31 Nevada 201 1.75
2,233,520 1. 1 New Hampshire 32 0.2 347, 17 0.2 New Jersey 327 2. 5 3,300,002 2.67 New Mexico 104
0.91 1,139,907 0.92 New York 431 3.76 4,767,347 3. 6 North Carolina 23 2.07 2,5 3,166 2.09 North
Dakota 6 0.05 71,646 0.06 Ohio 205 1.79 2,190,239 1.77 Oklahoma 10 0.94 1,129,725 0.92 Oregon 125
1.09 1,35 ,413 1.10 Pennsylvania 313 2.73 3,051,315 2.47 Puerto Rico 44 0.3 335,53 0.27 Rhode
Island 27 0.24 264,6 0.21 South Carolina 115 1.00 1,21 ,371 0.99 South Dakota 12 0.10 106,704 0.09
Tennessee 131 1.14 1,177, 03 0.95 Texas 3 3 3.34 4,199, 0 3.40 Utah 50 0.44 609,071 0.49 US Virgin
Islands 5 0.04 67,51 0.05 Vermont 16 0.14 179,316 0.15 Virginia 547 4.77 5, 32,3 6 4.72 Washington
293 2.55 3,075,102 2.49 West Virginia 31 0.27 304,616 0.25 Wisconsin 5 0.74 964,714 0.7 Wyoming 1
0.16 1 2,625 0.15 Foreign Address 3 3.3 4,145,910 3.36 Total; 11,47 100.00% $123,446,534 100.00%
Confidential credit suisse 60

 

 

	DROT 2009-1 Statistical Pool Characteristics diamond resorts Resort Percentage of
Percentage of Statistical Number Statistical Cut-Off Statistical Cut-Off Cut-Off Date Aggregate
Resort Location Timeshare Loans Date Loans (%) Date Loan Balance ($) Loan Balance (%) Cypress
Pointe Resort and Grande Villas Orlando, FL 15 0.13% $12,707 0.01% Daytona Beach Regency (Deeded)
Daytona Beach, FL 3 0.03 9,019 0.01 Daytona Beach Regency (Points) Daytona Beach, FL 0.07 65, 65
0.05 Desert Paradise Resort Las Vegas, NV 73 0.64 426,092 0.35 Diamond Resorts California
Collection Various 30 7.23 9,770,424 7.91 Diamond Resorts Hawaii Collection Various 1,15 10.09
15,623,116 12.66 Diamond Resorts U.S. Collection Various 7,259 63.24 7 ,215,051 63.36 Flamingo
Beach Resort St. Maarten, Netherlands 29 0.25 73,261 0.06 Antilles Grand Beach Orlando, FL 17 0.15
4 ,75 0.04 Island Links Resort Hilton Head, SC 0.07 40,626 0.03 Ka’anapali Beach Vacation Resort
Lahaina, HI 1,016 . 5 11,337,930 9.1 Lake Tahoe Vacation Resort South Lake Tahoe, CA 21 1.90 2,
16,970 2.2 London Bridge Resort Lake Havasu City, AZ 5 0.04 23,742 0.02 Marquis Villas Resort Palm
Springs, CA 29 0.25 110, 61 0.09 Polynesian Isles Kissimmee, FL 3 0.03 15,961 0.01 Royal Palm Beach
Resort St. Maarten, Netherlands 11 0.10 31,375 0.03 Antilles San Luis Bay Inn Avila Beach, CA 197
1.72 1,715,329 1.39 Scottsdale Links Resort Scottsdale, AZ 160 1.39 796,297 0.65 Scottsdale Villa
Mirage Scottsdale, AZ 6 0.05 15,965 0.01 TTie Historic Powhatan Resort James City, VA 3 0.03 12, 57
0.01 The Point at Poipu Kauai, HI 306 2.67 1, 42,7 0 1.49 The Ridge on Sedona Golf Resort Sedona,
AZ 16 0.14 66,667 0.05 Village at Steamboat Springs Steamboat Springs, CO 4 0.03 10,435 0.01 Villas
on the Lake at Lake Conroe Montgomery, TX 3 0.03 1, 27 0.00 Vacation Internationale VTS Program
Various 91 0.79 349,257 0.2 Other Various 10 0.10 13,363 0.00 fetal: 11,47 100.00% $123,446,534
100.00% Confidential CREDITSUISSE 61

 

 

	Diamond Resorts INTERNATIONAL Supplemental Information October 2009

 

 

	Diamond’s Business Model Diversified stream of cash flows Resort operations Approximately 40%
of the Company’s EBITDA contribution is generated from contractually recurring income streams
Recently renegotiated the management agreements to a cost-plus methodology Contracts are
evergreen and require a majority ownership vote to terminate 11 Management fees do not have any ADR
(Average Daily Rate) or occupancy risk Vacation Interest sales Approximately 40% of the
Company’s EBITDA contribution is generated through Vacation Interest sales Established marketing
platform driving the most profitable tours Seasoned sales team with the ability to sell through
the most turbulent markets (closing percentage has remained consistent) 11 Consumer finance
Approximately 20% of the Company’s EBITDA contribution is generated through the financing of
Vacation Interest purchases Long history of generating high quality paper First major timeshare
company to institute front-end credit underwriting Reduced reliance on conduit capacity — net
negative user of receivable financings since the credit crisis Since October 200 , approximately
65% of all sales paid cash prior to a loan being set-up

 

 

	Diamond’s Business Model Capital Light No project-specific debt No inventory CapEx CapEx
limited by credit agreements to $        million to $10 million annually through 2013 Normal inventory
turnover and existing levels provide enough inventory to support sales without the need for
additional CapEx Negative utilization of net receivables financings since the beginning of the
credit crisis The Company generated $40 .3 million of timeshare sales between April 27, 2007 and
September 30, 200 while consuming $19.4 million of net receivables financings The Conduit advance
rate was 92% prior to the credit crisis The Company generated $177.7 million of timeshare sales
between October 1, 200 and June 30, 2009 while reducing $3.6 million of net receivables
financings The Conduit advance rate was de-levered to 75% through a combination of corporate cash
and assets in connection with the extension executed in March 2009

 

 

	Executicve management team Chairman & CEO of Diamond Resorts International® Over 20 years of
experience in vacation ownership industry Founded the Cloobeck companies, a group of affiliated
companies with a highly diversified portfolio of assets and 25 years of experience in the
development, management, operations, marketing, and sales of real estate properties Chief
Financial Officer for Diamond Resorts International® 20 years of experience as private equity /
financial professional M.B.A. from J.L. Kellogg Graduate School of Management at Northwestern
University Senior Vice President in charge of Diamond’s sales and marketing division Over 25 years
experience in vacation ownership industry 1 billion dollars of vacation ownership sales in the last
4 years Senior Vice President in charge of Diamond’s resort management division Nearly 30 years of
management experience with major hotel brands, including Marriott, Hilton, Ramada, and Radisson
Vice President overseeing Diamond’s consumer finance division Over 20 years of experience in
vacation ownership industry Financial services and operations professional

 

 

	corporate focus Management aggressively adjusted the Company’s plan and operations beginning in Q4
200 and into 2009 in order to meet the demands of the current economy and capital markets Diamond
recognized the changing credit environment, took actions to mitigate the impact on liquidity and
cash and is now reaping the rewards of management actions taken Pro-active actions taken:
Capital Footprint Reduction: took steps to offset the rising cost of borrowing coupled with lower
advance rates and tightening credit availability Implemented cash incentive programs to increase
cash sales (cash sales have increased from 35% to 65%) Improved sales performance through the
elimination of low VPG (Volume Per Guest) marketing programs Raised interest rates 200 bps
Tightened credit underwriting guidelines Expense / Cost Control Closed three low margin sales
centers Eliminated traditional FDI (First Day Incentive) programs Implemented new reduced sales
commission structure Eliminated 444 employees — trimmed sales force and corporate headcount for a
savings of $13.3 million annually Reduced one-time M&A, legal and professional fees Reduced
vendor and OPC (Off Premise Contact) relationships Improve cash / liquidity: 11 Eliminated
additional growth CapEx (inventory levels of 2-3 years, assuming no additional inventory additions
through credit and HOA defaults)

 

 

	current capitalization and credit statistics ($’sin millions) Cash and cash equivalents $17.4
Cash in escrow and restricted cash $51.6 Revolver $23.5 0.25x First Lien term loan 226.5
2.64x Total First Lien 250.0 2.64x Second Lien term loan 142.1 4.15x Other debt 4.3 4.19x Total
Debt $396.5 4.19x LTMConsolidatedEBITDA1 $94.5 LTM Cash Interest Expense $36.4 Covenant
First Lien Debt/Consolidated EBITDA1 2.64x 3.00x Total Debt/Consolidated EBITDA1 4.19x 4.75x
Consolidated EBITDA1 /Cash Interest Expense 2.60x 1.90x Consolidated EBITDA = EBITDA less
mortgage and securitized receivables financing interest plus Vacation Interest cost of sales and
one-time adjustments

 

 

	Financial Results Summary / ($’sin millions) BHH Revenues: Vacation Interest sales, gross $5
        .6 $25 .9 $263. Provision for uncollectible Vacation Interest revenue (1.5) (4 .6) (50.5) Cash
Incentives (0.5) (6.1) (5.5) Vacation Interest, net 56.6 204.2 207. Management, member and other
services 40. 130.6 121.5 Interest 11.0 49.7 50.7 Gain on sale of mortgages receivable 0.1 0.3 0.1
Total revenues 10 .4 3 4.7 3 0.2 Costs and Operating Expenses: Vacation Interest cost of sales 12.6
57.4 59.7 Advertising, sales and marketing 27.2 131.7 135.6 Vacation Interest carrying cost, net
7.1 26.1 27.1 Management, member and other services 13.9 55. 5 .3 Loan portfolio 2.6 . 9.6 General
and administrative 17.2 1.7 7 .1 (Gain) loss on sales of assets 0.0 (0.4) (0.4) Depreciation and
amortization 3.4 14.1 15.6 Interest, net of capitalized interest 1 .5 72.0 72.2 Loss on
extinguishment of debt — 10.6 .6 Impairments — 17.2 17.2 Total costs and operating expenses 102.7
474.9 4 1.5 Income (loss) before provision/benefit for income taxes 5. (90.2) (101.3) Provision for
income taxes 0.7 2.3 1.3 Net Income (Loss) 5.1 (92.5) (102.6) EBITDA 2 .4 .7 (4.1) (+) Vacation
Interest cost of sales 12.6 57.4 59.7 (-) Mortgage and securitized receivables financing interest
(6.4) (24.7) (22.6) (+) Purchase accounting adjustments — 0.1 0.1 (+/-) Adjustments (6.1) 53.0 59.
Consolidated EBITDA $2 .5 $94.5 $92.9

 

 

	Historical financial Summary (S’sin millions) Revenues: Vacation Interest, net $274.6 $253.4
$234.3 Management, member and other services 2.7 7.5 114.2 Interest 40.0 52.4 53.9 Gain on sale of
mortgages receivable 0.3 0.5 0.3 Total revenues 397.6 393. 402.7 Costs and Operating Expenses:
Vacation Interest cost of sales 51.5 56.2 67.6 Advertising, sales and marketing 14 .7 132.3 14 .6
Vacation Interest carrying cost, net 1 .7 25.2 22.7 Management, member and other services 56.5 54.5
59.1 Loan portfolio 7.0 .1 . General and administrative 69.4 90.4 7 .7 (Gain) loss on sales of
assets 0.2 — (0.4) Depreciation and amortization .3 14.3 16.7 Interest, net of capitalized interest
1 .6 65.3 71.0 Reorganization and restructuring 9.0 0.5 Impairments 23 — 17.2 Total costs and
operating expenses 390.2 446. 4 9.9 Income (loss) before provision/benefit for income taxes 7.4
(53.0) ( 7.2) Provision for income taxes .1 1.9 1. Loss from continuing operations (0.7) (54.9) (
9.0) Loss from discontinued operations 0.3 2.3 — Net Income (Loss) (1.0) (57.2) ( 9.0) EBITDA 49.1
2 .2 2.0 (+) Vacation Interest cost of sales 51.5 56.2 67.6 (-) Mortgage and securitized
receivables financing interest (15.0) (19.3) (20. ) (+) Purchase accounting adjustments — 29.0 1.
(+) Adjustments 31.2 3 .0 43.6 Consolidated EBITDA $116. $132.1 $941

 

 

	financial projections ($ in millions, except VPG data)
Revenue VOI Sales, Grass
$265.0 $262.9 $276.2 $297.3 $320.1 Provision for uncollectible Vacation Interest revenue (12.5)
(13.7) (14.3) (15.5) (16.7) Cash Incentives ( .0) (7.9) ( .3) ( .9) (9.6) Vacation Interest, net
(‘VOI ) $244.6 $241.3 $253.6 $272.9 $293. Management, member & other services 132.2 139.6 144.5 14
        .4 151.6 Interest 52.6 53.7 5 .2 64.9 72.1 Total revenues $429.4 $434.6 $456.3 $4 6.1 $517.5%
growth 6.6% 1.2% 5.0% 6.5% 6.4% Costs and Operating Expenses Vacation Interest cost of sales ($65.
) ($5 . ) ($56.5) ($51. ) ($52.6) Advertising, sales and marketing (132. ) (134.3) (13 .2) (143.4)
(14 .6) Vacation Interest carrying costs, net (31. ) (36.9) (36.6) (34.2) (29.0) Management, member
& other services (73.2) (72.7) (73.4) (74.2) (75.1) Loan portfolio (14.2) (13. ) (14.5) (15.9)
(17.7) General and Administrative (4 .9) (47.1) (51.0) (51.0) (53.2) Depreciation and amortization
(1 .0) (11.2) (9.4) (9.4) (9.3) Operating profit $44.6 $59. $76.7 $106.3 $132.1 (-) Operating
interest expense (mortgage & securitized receivables financing) (23.2) (22.0) (22.9) (25.4) (2 .2)
(+) Depreciation and amortization 1 .0 IVj 9.4 9.4 9.3 EBITDA $39.5 $49.0 $63.2 $90.3 $113.2%
margin 9.2% 11.3% 13. % 1 .6% 21.9% % growth NM 23.9% 29.0% 42.9% 25.4% (+) Vacation Interest cost
of sales 65. 5 . 56.5 51. 52.6 Consolidated EBITDA $105.4 $10 .1 $120.1 $142.7 $166.3% margin
24.5% 24.9% 26.3% 29.3% 32.1% % growth 12.0% 2.5% 11.1% 1 . % 16.5% Summary stats Tours 136,620
137,700 141,143 144,21 147,293 Volume per Guest (‘VPG ) $1,940 $1,909 $1,957 $2,061 $2,173 ASM as %
of VOI 54.3% 55.7% 54.5% 52.6% 50.6% Product cost as % of VOI 26.9% 24.3% 22.3% 19.0% 17.9% G&A as
% of Total revenues 11.4% 10. % 11.2% 10.5% 10.3% Defaults as % of Avg. Rec. Balance 7.7% 5. %
4.7% 4.6% 4.7%

 

 

	financial projections — credit statistics EBITDA $39.5 $49.0 $63.2 $90.3 $113.2% growth NM 23.9%
29.0% 42.9% 25.4% Consolidated EBITDA 105.4 10 .1 120.1 142.7 166.3% growth 12.0% 2.5% 11.1% 1 . %
16.5% Cash Interest Expense (excludes mortgage & securitized receivables financing) 45.2 47.1 49.3
47.2 42.5% growth 7.7% 4.3% 4.6% (4.2%) (10.1%) CapEx 6.0 6.0 6.0 6.0 6.0% growth (53.2%) -
Balance sheet Unrestricted cash $19.2 $20.0 $20.0 $20.0 $20.0 Revolver 23.5 6.6 0.5 First lien
224.3 220.9 193.0 14 .9 1.0 Second lien 145. 151. 15 .1 164.6 171.4 Notes payable — Other 14 1/4 14
14 1.4 Total debt $394.9 $3 0.7 $353.0 $314.9 $253. Consolidated EBITDA credit stats Consolidated
EBITDA / Cash Interest Expense 2.3x 2.3x 2.4x 3.0x 3.9x (Consolidated EBITDA — CapEx) / Cash
Interest Expense 2.2x 2.2x 2.3x 2.9x 3. x First lien / Consolidated EBITDA 2.1x 2.0x 16x 1.0x O.Sx
Total debt / Consolidated EBITDA 3.7x 3.5x 2.9x 2.2x 15x

 

 

	summary of 1 st and 2nd lien agreement 1st lien 2nd lien Revolver maturity date: April
26,2011 Term loan maturity date: April 26,2013 Term loan maturity date: April 26,2012 Rate:
LIBOR+1150bps Rate: LIBOR + 750bps (Cash) (Cash: 750bps, PIK: 400bps) LIBOR floor: 2.00% LIBOR
floor: 2.00% Covenants: Covenants: Total Leverage First Lien Leverage Total Leverage 6/30/09:
4.75x 6/30/09: 3.00x 6/30/09: 4.75x 9/30/09: 4.55x 12/31/10: 2.50x 9/30/09: 4.55x 3/31/10: 4.25x
3/31/11: 2.25x 3/31/10: 4.25x 3/31/11: 3.75x 6/30/11: 2.00x 3/31/11: 3.75x 6/30/11: 3.50x 3/31/12:
l.SOx 6/30/11: 3.50x 3/31/12: 3.00x 12/31/12: 1.25x 3/31/12: 3.00x 12/31/12: 2.75x 6/30/13
12/31/12: 2.75x 3/31/13: 2.50x and after: l.OOx 3/31/13: 2.50x 9/30/13 9/30/13 and after: 2.00x and
after: 2.00x Interest coverage CapEx Limitations CapEx Limitations — Same as 1st lien 6/30/09:
1.90x 2009 and 2010: $ .0 million 3/31/10: 2.00x 2011 and thereafter: $10.0 million 3/31/12: 2.25x
Carryover permitted for 2 years 9/30/12: 2.50x 3/31/13 and after: 2.75x Mandatory prepayments
Mandatory prepayments Termination of the Tranche A Funding Amounts or Revolving Credit — Asset
sales: 100% of net proceeds except if such proceeds are reinvested Commitments: 100% of all
outstanding borrowings in similar assets of the business Asset sales: 100% of Net Cash Proceeds
except if such proceeds are — Equity issuance: 100% of Net Cash Proceeds, except for existing owner
reinvested in similar assets of the business group Equity issuance: 100% of Net Cash Proceeds,
except for existing — Excess Cash Flow: 100% owner group — Debt issuance: 100% of Net Cash
Proceeds, subject to certain exceptions Excess Cash Flow: 100% Debt issuance: 100% of Net Cash
Proceeds, subject to certain exceptions Quarterly repayment amount of $0.6 million, subject to
certain change k.

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